Innospec(IOSP) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenues for Q2 2024 were $435.0 million, a decrease of 9% from $480.4 million in Q2 2023[1] - Net income for the quarter was $31.2 million, or $1.24 per diluted share, compared to $28.9 million, or $1.16 per diluted share, in the prior year[1] - Adjusted non-GAAP EPS for Q2 2024 was $1.39 per diluted share, up from $1.28 per diluted share a year ago[2] - Net sales for Q2 2024 were $435.0 million, a decrease of 9.4% compared to $480.4 million in Q2 2023[11] - Gross profit for Q2 2024 was $126.9 million, down 15.6% from $150.4 million in Q2 2023[11] - Operating income increased to $40.7 million in Q2 2024, compared to $34.2 million in Q2 2023, reflecting a growth of 18.9%[11] - Net income for Q2 2024 was $31.2 million, up from $28.9 million in Q2 2023, representing an increase of 8.0%[11] - Basic earnings per share for Q2 2024 were $1.25, compared to $1.16 in Q2 2023, an increase of 7.8%[11] - Net income for the six months ended June 30, 2024, increased to $72.6 million, up from $62.1 million in the same period of 2023, representing a growth of 7.9%[15] Segment Performance - Performance Chemicals revenues were $160.1 million, up 25% year-over-year, with operating income more than doubling to $21.2 million[5] - Performance Chemicals segment net sales rose to $160.1 million in Q2 2024, a 25.3% increase from $127.8 million in Q2 2023[12] - Fuel Specialties revenues increased by 8% to $166.6 million, with operating income rising 78% to $30.4 million[6] - Fuel Specialties segment net sales increased to $166.6 million in Q2 2024, up 8.0% from $154.2 million in Q2 2023[12] - Oilfield Services revenues decreased by 45% to $108.3 million, with operating income down 74% to $7.3 million[6] - Oilfield Services segment net sales decreased to $108.3 million in Q2 2024, down 45.5% from $198.4 million in Q2 2023[12] Cash Flow and Assets - Cash from operating activities was $4.7 million, compared to $55.0 million in the same quarter last year[7] - The company ended the quarter with $240.2 million in cash and cash equivalents and no debt[7] - Total current assets as of June 30, 2024, were $876.8 million, a slight decrease from $885.7 million at the end of 2023[14] - Total assets decreased to $1,700.3 million as of June 30, 2024, from $1,707.4 million at the end of 2023[14] - Net cash provided by operating activities rose to $85.3 million, compared to $76.8 million in the prior year, reflecting an increase of 10.5%[15] - Cash and cash equivalents at the end of the period increased to $240.2 million, compared to $165.9 million at the end of the previous year, marking a growth of 44.7%[15] Investments and Shareholder Returns - The company plans to pursue organic investments and complementary M&A while returning value to shareholders through dividend growth[8] - Capital expenditures decreased to $21.6 million from $32.6 million, a reduction of 33.1% year-over-year[15] - Dividend paid increased to $19.0 million from $17.2 million, reflecting an increase of 10.5%[15] Tax and Other Financial Metrics - The effective tax rate for the quarter was 28.6%, up from 21.0% in the same period last year[7] - Non-controlling interest contribution rose to $0.8 million, up from $0.2 million, a significant increase of 300%[15] - The company reported a decrease in changes in working capital, which resulted in a cash outflow of $(10.0) million compared to an inflow of $11.5 million in the previous year[15] - The amortization of deferred finance costs decreased to $0.2 million from $0.7 million, indicating a reduction of 71.4%[15] - The effect of foreign currency exchange rate changes on cash resulted in a loss of $(0.7) million, compared to a gain of $0.1 million in the prior year[15]