NewMarket (US:NEU)2024-10-23 21:16Financial Performance - Third quarter net income was $132.3 million, or $13.79 per share, compared to $111.2 million, or $11.60 per share, in the same period last year, representing a 19.0% increase in net income [1] - Net income for the nine months ended September 30, 2024, was $351,674 thousand, compared to $308,454 thousand for the same period in 2023, reflecting a year-over-year increase of about 14% [16] - EBITDA for the nine months ended September 30, 2024, was $579,151 thousand, up from $471,212 thousand in 2023, marking a growth of around 23% [17] Sales and Operating Profit - Petroleum additives sales for the third quarter of 2024 were $663.0 million, slightly down from $663.7 million in the same period of 2023 [2] - Operating profit for petroleum additives in the third quarter of 2024 was $157.5 million, up from $139.8 million in the same period last year, reflecting a 12.8% increase [2] - For the first nine months of 2024, petroleum additives operating profit was $456.2 million, compared to $404.0 million in the same period of 2023, indicating a 12.9% increase [2] - Specialty materials sales were $59.1 million for the third quarter of 2024 and $114.2 million for the first nine months of 2024, with an operating profit of $16.0 million [3] Debt and Leverage - The company reduced debt by $259 million since the acquisition of American Pacific Corporation (AMPAC) on January 16, 2024 [4] - Long-term debt rose significantly to $1,085,006 thousand as of September 30, 2024, compared to $643,622 thousand at December 31, 2023, indicating an increase of approximately 68.5% [18] - Net debt increased to $1,004,696 thousand as of September 30, 2024, from $531,686 thousand at December 31, 2023, which is an increase of approximately 88.8% [18] - The net debt to EBITDA ratio increased to 1.4 as of September 30, 2024, compared to 0.9 in the previous year, indicating a higher leverage position [19] Cash and Assets - Cash and cash equivalents decreased to $80,310 thousand as of September 30, 2024, down from $111,936 thousand at December 31, 2023, representing a decline of approximately 28.3% [15] - Total assets increased to $3,166,284 thousand as of September 30, 2024, up from $2,308,871 thousand at December 31, 2023, representing a growth of approximately 37.2% [15] - Total current liabilities increased to $401,953 thousand as of September 30, 2024, from $364,164 thousand at December 31, 2023, which is an increase of about 10.4% [15] - The company reported a decrease in cash and cash equivalents of $31,626 thousand for the nine months ended September 30, 2024, compared to an increase of $33,848 thousand in the same period of 2023 [16] Capital Expenditures and Dividends - The company reported capital expenditures of $42,700 thousand for the nine months ended September 30, 2024, compared to $34,793 thousand in the same period of 2023, reflecting an increase of about 22.5% [16] - Cash dividends declared per share increased to $2.50 in the third quarter of 2024, up from $2.25 in the same period last year [14] Strategic Focus - The company remains focused on margin management, operating costs, inventory levels, and portfolio profitability as priorities throughout 2024 [3]