Orion Engineered Carbons(US:OEC)2024-05-02 20:46Financial Performance - Net sales for Q1 2024 were $502.9 million, an increase of $2.2 million or 0.4% year over year[4] - Adjusted EBITDA for Q1 2024 was $85.3 million, down 15.6% from $101.1 million in Q1 2023[4] - Net income decreased to $26.7 million, a decline of $15.6 million or 36.9% year over year[4] - Gross profit decreased to $122.2 million in Q1 2024 from $136.4 million in Q1 2023, resulting in a gross profit per metric ton of $491.9, down from $584.2[42] - Net income for Q1 2024 was $26.7 million, a decrease from $42.3 million in Q1 2023, leading to diluted EPS of $0.45, down from $0.70[44] - Adjusted net income for Q1 2024 was $30.8 million, compared to $45.1 million in Q1 2023, reflecting the impact of various adjustments[44] - Net income for the three months ended March 31, 2024, was $26.7 million, a decrease of 37.0% compared to $42.3 million for the same period in 2023[54] Sales and Volume - Volume increased by 14.9 kmt, or 6.4%, year over year, primarily due to higher volume in both segments[6] - Specialty Carbon Black segment net sales rose by $8.9 million, or 5.5%, to $170.9 million year over year[14] - Rubber Carbon Black segment net sales declined by $6.7 million, or 2.0%, to $332.0 million year over year[18] - Net sales for the first quarter of 2024 were $502.9 million, a slight increase from $500.7 million in the same period of 2023[47] Debt and Equity - The company's net debt as of March 31, 2024, was $773.1 million, down $8 million from the end of 2023[22] - Total debt as of March 31, 2024, was $813.5 million, resulting in net debt of $773.1 million after accounting for cash and cash equivalents[42] - Long-term debt, net, decreased slightly to $668.7 million from $677.3 million, a reduction of 1.3%[52] - Total stockholders' equity increased to $492.2 million, up from $478.5 million, representing a growth of 2.7%[52] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $43.9 million, down from $76.8 million a year earlier, reflecting a decrease of 42.9%[54] - Net cash provided by operating activities decreased to $32.4 million for Q1 2024, down 70.0% from $108.1 million in Q1 2023[54] - Total assets increased to $1,874.6 million as of March 31, 2024, up from $1,833.4 million at December 31, 2023, representing a growth of 2.3%[52] - Total current liabilities rose to $468.8 million, an increase of 6.5% from $440.3 million at the end of 2023[52] Investments and Future Outlook - The company expects 2024 Adjusted EBITDA to be in the range of $340 million to $360 million, representing over 5% growth at the midpoint compared to 2023[23] - The projected full year 2024 Adjusted Diluted EPS is between $2.05 and $2.20 per share, indicating over 11% growth at the midpoint[23] - The company celebrated the groundbreaking for a new acetylene-based conductive additives facility in La Porte, Texas, expected to be commissioned in 2025[3] - Research and development costs increased to $6.6 million in Q1 2024 from $6.2 million in Q1 2023, indicating ongoing investment in new product development[47] Operational Performance - The company reported a decrease in income from operations to $52.8 million in Q1 2024, down from $73.5 million in Q1 2023[47] - The weighted-average shares outstanding decreased to 58,640 thousand in Q1 2024 from 60,287 thousand in Q1 2023, impacting per-share metrics[47] - The company reported a decrease in inventories to $277.5 million from $287.1 million, a decline of 3.0%[52] Risks and Challenges - The company highlighted potential risks including geopolitical events and economic conditions that could affect future performance[30]