[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis of operations, market risk disclosures, and internal controls [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) NewMarket Corporation's unaudited financial statements show mixed results with increased Q3 net income despite lower sales, and stable balance sheet [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2020 net income significantly increased to $95.8 million despite lower net sales, while nine-month net income remained flat Consolidated Statements of Income Highlights (in thousands, except per-share amounts) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $512,869 | $555,817 | $1,483,150 | $1,655,850 | | **Gross profit** | $166,607 | $162,727 | $444,252 | $486,429 | | **Operating profit** | $98,804 | $88,218 | $236,247 | $269,765 | | **Net income** | $95,794 | $67,805 | $203,684 | $204,184 | | **Earnings per share** | $8.77 | $6.06 | $18.52 | $18.26 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $1.88 billion, while reduced long-term debt led to an increase in shareholders' equity Balance Sheet Summary (in thousands) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $854,362 | $879,398 | | **Total assets** | $1,880,122 | $1,885,132 | | **Total current liabilities** | $308,899 | $308,895 | | **Long-term debt** | $608,702 | $642,941 | | **Total liabilities** | $1,156,596 | $1,202,034 | | **Total shareholders' equity** | $723,526 | $683,098 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $216.3 million, with significant cash used for share repurchases and dividends, leading to a net cash decrease Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | **Cash from operating activities** | $216,320 | $233,247 | | **Cash from investing activities** | $(41,060) | $(37,132) | | **Cash from financing activities** | $(200,210) | $(188,579) | | **(Decrease) increase in cash** | $(26,696) | $6,931 | | **Cash at end of period** | $117,701 | $79,971 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment performance, debt structure, and accounting policies, highlighting petroleum additives sales and a new $900 million credit facility Net Sales by Geographic Area (in thousands) | Region | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | United States | $175,086 | $191,830 | $476,858 | $551,875 | | Europe, Middle East, Africa, India | $161,484 | $179,685 | $483,051 | $526,597 | | China | $56,531 | $49,219 | $159,771 | $170,627 | Net Sales by Segment (in thousands) | Segment | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Lubricant additives | $432,938 | $448,629 | $1,240,042 | $1,348,508 | | Fuel additives | $77,342 | $101,997 | $236,313 | $295,621 | | **Total Petroleum additives** | **$510,280** | **$550,626** | **$1,476,355** | **$1,644,129** | - In March 2020, the company entered into a new five-year, **$900 million** multicurrency revolving credit facility, with **$888 million** unused at September 30, 2020[49](index=49&type=chunk)[50](index=50&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19's impact on sales, Q3 recovery, improved operating margins, and the company's strong financial position and capital allocation [Impact of COVID-19 and Results of Operations](index=17&type=section&id=Impact%20of%20COVID-19%20and%20Results%20of%20Operations) COVID-19 led to a 7.5% decline in nine-month shipment volumes, though Q3 showed recovery and improved petroleum additives operating profit - The COVID-19 pandemic led to a **7.5% decrease** in shipment volumes for the first nine months of 2020[74](index=74&type=chunk) - Q3 2020 showed signs of recovery, with shipments increasing over **25%** from Q2 2020 due to rebounding industrial production[76](index=76&type=chunk) Petroleum Additives Segment Operating Profit (in millions) | Period | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | **Q3 Operating Profit** | $102.2 | $94.8 | +$7.4 | | **Nine Months Operating Profit** | $248.9 | $285.6 | -$36.7 | - The operating profit margin for petroleum additives improved to **20.0%** in Q3 2020 from **17.2%** in Q3 2019, though slightly decreased to **16.9%** for the nine-month period[92](index=92&type=chunk) [Cash Flows, Financial Condition, and Liquidity](index=21&type=section&id=Cash%20Flows%2C%20Financial%20Condition%2C%20and%20Liquidity) The company maintains a strong financial position with $216.3 million in operating cash flow, reduced long-term debt, and compliance with debt covenants - Cash from operations for the first nine months of 2020 was **$216.3 million**[107](index=107&type=chunk) - The company repurchased **$101.4 million** of common stock and paid **$62.7 million** in dividends during the first nine months of 2020[111](index=111&type=chunk) - Total long-term debt as a percentage of total capitalization decreased from **48.5%** at December 31, 2019, to **45.7%** at September 30, 2020[116](index=116&type=chunk) - Total capital spending for 2020 is expected to be in the range of **$75 million to $85 million**[110](index=110&type=chunk) [Outlook](index=22&type=section&id=Outlook) Management anticipates market stabilization and long-term growth of 1-2% for petroleum additives, while continuing strategic investments and evaluating cash uses - The company aims to provide a **10% compounded return** per year for shareholders over any five-year period[119](index=119&type=chunk) - The petroleum additives market is expected to grow **1% to 2%** annually long-term, with the company planning to exceed this rate[120](index=120&type=chunk) - Acquisitions primarily target the petroleum additives industry, with ongoing evaluation of cash uses including stock repurchases and dividends[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk were reported as of September 30, 2020, compared to the 2019 Annual Report - As of September 30, 2020, no material changes in market risk were reported compared to the 2019 Annual Report disclosures[123](index=123&type=chunk) [Controls and Procedures](index=23&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were concluded to be effective by management as of the reporting period end[124](index=124&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended September 30, 2020[125](index=125&type=chunk) [PART II. OTHER INFORMATION](index=24&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and details on equity security sales and use of proceeds [Legal Proceedings](index=24&type=section&id=ITEM%201.%20Legal%20Proceedings) No material changes to the company's legal proceedings were reported compared to the 2019 Annual Report - No material changes to legal proceedings were reported compared to the 2019 Annual Report disclosures[127](index=127&type=chunk) [Risk Factors](index=24&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the nine months ended September 30, 2020 - No material changes to risk factors were reported for the nine months ended September 30, 2020[128](index=128&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a **$500 million** share repurchase program, with **$399 million** remaining as of September 30, 2020, after Q3 repurchases - A share repurchase program authorizes up to **$500 million** in common stock buybacks until December 31, 2021[129](index=129&type=chunk) Issuer Purchases of Equity Securities (Q3 2020) | Period | Total Shares Purchased | Average Price Paid per Share | Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | July 1 to July 31 | 3,835 | $373.88 | $398,566,341 | | August 1 to August 31 | 0 | $0.00 | $398,566,341 | | September 1 to September 30 | 0 | $0.00 | $398,566,341 | | **Total** | **3,835** | **$373.88** | **$398,566,341** |

NewMarket Corporation (NYSE:NEU) Q2 2020 Earnings Conference Call July 30, 2020 3:00 PM ET Company Participants Brian Paliotti - Chief Financial Officer Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the NewMarket Corporation Conference Call and Webcast to review second quarter 2020 financial results. All lines have been placed on a listen-only mode for the duration of today???s call. At this time, it is my pleasure to turn the floor over to your host to Mr. Brian Palio ...

Financial Performance - Consolidated net sales for Q2 2020 totaled $410.9 million, a decrease of $152.6 million, or 27.1%, from Q2 2019[84]. - Petroleum additives net sales for the first six months of 2020 were $966.1 million, down 11.7% from $1.1 billion in the same period of 2019[87]. - Shipments to customers in Q2 2020 were down 25.1% from Q1 2020, with North America and EMEAI regions experiencing the most significant decreases[77]. - The operating profit margin for petroleum additives was 8.1% in Q2 2020, compared to 18.4% in Q2 2019[99]. - Petroleum additives operating profit decreased by $69.9 million in Q2 2020 compared to Q2 2019, and by $44.1 million in the first six months of 2020 compared to the same period in 2019[96]. - The volume of product shipments for petroleum additives decreased 24.4% in Q2 2020 compared to Q2 2019, and 9.6% for the first six months of 2020 compared to the same period in 2019[91]. - Cost of goods sold as a percentage of net sales was 76.5% for Q2 2020, up from 69.5% in Q2 2019[100]. - The impact of COVID-19 has led to lower demand for petroleum additives products, significantly affecting net sales and operating profit margins[88]. Expenses and Investments - SG&A expenses for Q2 2020 were $1.3 million, or 4.4% lower than Q2 2019, and represented 7.2% of net sales compared to 5.5% in Q2 2019[102]. - R&D investment decreased by $3.6 million in Q2 2020 compared to Q2 2019, accounting for 8.2% of net sales versus 6.6% in Q2 2019[103]. - Interest and financing expenses were $7.0 million in Q2 2020, down from $7.7 million in Q2 2019, primarily due to lower average interest rates[105]. - Other income for Q2 2020 was $6.5 million, an increase from $5.8 million in Q2 2019, reflecting components of net periodic benefit cost[106]. - Income tax expense for Q2 2020 was $4.9 million, significantly lower than $22.5 million in Q2 2019, with an effective tax rate of 18.0% compared to 23.3%[107]. Cash Flow and Debt - Cash and cash equivalents decreased by $42.3 million to $102.1 million as of June 30, 2020, compared to December 31, 2019[110]. - Cash flows from operating activities for the first six months of 2020 were $94.3 million, with $60.1 million used for higher working capital requirements[114]. - Total long-term debt increased to $690.3 million as of June 30, 2020, from $642.9 million at December 31, 2019[119]. Future Outlook - The company expects the petroleum additives market to grow at 1% to 2% annually, with plans to exceed this growth rate in the long term[127]. - The company aims to provide a 10% compounded return per year for shareholders over any five-year period, focusing on customer-centric strategies and technology-driven solutions[126]. Strategic Initiatives - The company has a strong financial position with access to a $900 million revolving credit facility established in March 2020[81]. - The company continues to invest in organizational talent, technology development, and global infrastructure despite the current economic challenges[76].

Financial Data and Key Metrics Changes - Net income for Q1 2020 was $85.5 million, or $7.67 per share, compared to $62.2 million, or $5.57 per share in Q1 2019, representing a significant increase [5] - The effective income tax rate decreased to 22.3% from 23% year-over-year [8] - Capital expenditures for the quarter were $20.1 million, with dividends paid amounting to $21.2 million and share repurchases totaling $94.3 million [8] - The company maintained a low leverage with a net debt-to-EBITDA ratio of 1.2 times [9] Business Line Data and Key Metrics Changes - Petroleum additives net sales increased to $557.4 million in Q1 2020 from $532.7 million in Q1 2019, marking a 4.6% increase [6] - Operating profit for petroleum additives rose to $113.7 million from $87.9 million year-over-year, driven by higher shipments and lower conversion costs [7] Market Data and Key Metrics Changes - The increase in lubricant additive shipments was primarily driven by Europe, North America, and Latin America, while Asia Pacific experienced a decrease [6] - The company anticipates a significant decline in shipments for passenger vehicle lubricants and fuels, particularly in Europe and the Americas, due to COVID-19 impacts [13] Company Strategy and Development Direction - The company is focused on maintaining operations and meeting customer needs during the COVID-19 crisis, ensuring supply chain continuity and product availability [12] - Management emphasized long-term planning and resilience in navigating short-term challenges, with a positive outlook for recovery as restrictions ease [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite expecting a downturn in Q2 2020 due to social distancing measures affecting business operations [13] - The company is encouraged by early recovery signs in its China business and remains optimistic about global market recovery [14] Other Important Information - The company has taken steps to support local communities by providing protective equipment to hospitals and fire departments during the pandemic [16] - Management highlighted the essential role of the chemical and oil industries in combating COVID-19 and ensuring the supply of critical products [16] Q&A Session Summary - The Q&A session concluded without specific questions being documented, indicating a focus on the company's remarks and future outlook [21]

Table of Contents WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number 1-32190 NEWMARKET CORPORATION (Exact name of registrant as specified in its charter) Virginia 20-0812170 (State or other juri ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32190 NEWMARKET CORPORATION Incorporated pursuant to the Laws of the Commonwealth of Virginia Internal Revenue Service Employer ...

NewMarket Corporation (NYSE:NEU) Q4 2019 Earnings Conference Call February 4, 2020 3:00 PM ET Company Participants Brian Paliotti - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, hello, and thank you all for joining today's NewMarket Corporation Fourth Quarter 2019 and Year-End Financial Results Conference Call. We'll jump right in. And I'm pleased to turn the floor over to your host Mr. Brian Paliotti. Please go ahead sir. Brian Paliotti Thank you, Jim and thanks to eve ...

NewMarket Corporation (NYSE:NEU) Q3 2019 Earnings Conference Call October 24, 2019 3:00 PM ET Company Participants Brian Paliotti - Chief Financial Officer Conference Call Participants Dmitry Silversteyn - Buckingham Research Operator Ladies and gentlemen, good day, and thank you all for joining this NewMarket Corporation Conference Call and Webcast to review Third Quarter 2019 Financial Results. [Operator Instructions] And now for opening remarks and introductions, I'm pleased to turn the floor over to you ...

Financial Performance - Consolidated net sales for Q3 2019 totaled $555.8 million, a decrease of $7.3 million, or 1.3%, from Q3 2018[83] - Petroleum additives net sales for the first nine months of 2019 were $1.6 billion, down 5.7% from $1.7 billion in the same period of 2018[86] - Operating profit for petroleum additives increased by $19.0 million in Q3 2019 compared to Q3 2018, and by $54.1 million for the first nine months of 2019 compared to the same period in 2018[95] - The operating profit margin for petroleum additives was 17.2% in Q3 2019, up from 13.5% in Q3 2018, and 17.4% for the first nine months of 2019, compared to 13.3% in the same period of 2018[96] - The decrease in petroleum additives net sales for the first nine months of 2019 was attributed to lower product shipments across all regions, with the most significant decline in the EMEAI region[86] Expenses and Taxation - Research and development (R&D) expenses as a percentage of net sales were 6.6% for Q3 2019, compared to 6.3% for Q3 2018[100] - Selling, general, and administrative expenses (SG&A) decreased by $0.6 million, or 1.9%, in Q3 2019 compared to Q3 2018, and by $10.2 million, or 9.9%, for the first nine months of 2019 compared to the same period in 2018[99] - Interest and financing expenses were $7.0 million for Q3 2019, down from $7.8 million in Q3 2018, primarily due to lower average debt outstanding[101] - Income tax expense for Q3 2019 was $19.7 million, with an effective tax rate of 22.5%, compared to $9.8 million and 14.4% in Q3 2018[103] - Income tax expense for the first nine months of 2019 was $60.8 million, up from $47.3 million in the same period of 2018, with an effective tax rate increase from 21.6% to 22.9%[104] Cash Flow and Capital Structure - Cash and cash equivalents increased to $80.0 million as of September 30, 2019, a rise of $6.9 million since December 31, 2018[106] - Cash flows from operating activities for the first nine months of 2019 were $233.2 million, which included $36.0 million used for higher working capital requirements[110] - Total working capital was $546.5 million at September 30, 2019, compared to $542.1 million at December 31, 2018, with a current ratio of 2.95 to 1[113] - Cash used in investing activities totaled $37.1 million during the first nine months of 2019, with total capital spending expected to be in the range of $60 million to $70 million for the year[114] - Long-term debt decreased from $771.0 million at December 31, 2018, to $640.0 million at September 30, 2019, resulting in a long-term debt percentage of total capitalization dropping from 61.1% to 50.4%[116][119] Strategic Outlook - The company expects the petroleum additives market to grow at an annual rate of 1% to 2%, with plans to exceed this growth rate over the long term[124] - Significant investments have been made in organizational talent, technology development, and global infrastructure to enhance operating results and customer solutions[125] - The company remains focused on the petroleum additives industry for future acquisitions, viewing it as a segment with solid return opportunities while minimizing risk[126] - The company aims to provide a 10% compounded return per year for shareholders over any five-year period, emphasizing a long-term view and customer-focused strategy[123]

Financial Data and Key Metrics Changes - Net income for Q2 2019 was $74.2 million or $6.63 per share, compared to $52.9 million or $4.53 per share in Q2 2018 [4] - Petroleum additive net sales decreased to $560.8 million from $596.2 million year-over-year, primarily due to lower shipments [4] - Operating profit for petroleum additives increased to $103 million from $71.5 million in the same quarter last year [5] - The effective income tax rate decreased to 23.3% from 24% year-over-year [7] - The rolling operating profit margin for the four quarters ended June 30, 2019, was 15.8%, the highest since 2017 [6][7] Business Line Data and Key Metrics Changes - Shipments of petroleum additives were down 8.4% year-over-year, mainly due to decreases in lubricant additive shipments in Europe and Latin America, and fuel additive shipments in Europe, North America, and Latin America [4] - The decline in shipments was attributed to the decision not to renew certain low-margin business and softening global demand [5] Market Data and Key Metrics Changes - The petroleum additives market is expected to grow at an annual rate of 1% to 2% for the foreseeable future [8] - The company anticipates exceeding this growth rate over the long term [8] Company Strategy and Development Direction - The company is focused on managing its business to meet customer needs while generating solid operating profit [7] - The strategy includes shedding low-margin business to promote long-term value for shareholders [5][8] Management's Comments on Operating Environment and Future Outlook - Management noted signs of a turnaround from the challenging economic environment faced over the past two years, characterized by rising raw material prices and softening global demand [6] - The company does not provide specific guidance but believes the business will operate in the mid- to high-teens margin range over the long term [18][25] Other Important Information - Capital expenditures for 2019 are expected to be in the range of $60 million to $70 million, slightly revised downward due to the timing of larger capital projects [7] Q&A Session Summary Question: Impact of foreign exchange on margins - Management confirmed that the positive impact on margins was a translation effect related to manufacturing and sales locations [11][12] Question: Volume loss in petroleum additives - The volume loss was attributed to a combination of market slowdown and the decision to divest low-margin business, with approximately 3% of the 8% decline due to divestitures [14][15] Question: Sustainability of EBIT margins - Management indicated that there was nothing in the current quarter's margin drivers that would not be repeatable in the second half of the year [19]