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Texas Petrochemicals Reports Fiscal 2010 First Quarter ResultsNovember 13, 2009 6:00 AM ETFirst quarter results reflect higher selling prices and more stable margins despite continuing weakness in the economy HOUSTON, Nov. 13 /PRNewswire-FirstCall/ --Texas Petrochemicals, Inc., (OTC:TXPI.PK:) today reported revenues of $340.2 million for the first quarter of fiscal 2010 compared to $543.3 million in last year's first quarter and $260.9 million in the immediately preceding fourth quarter of fiscal 2009. The 37% decline compared to the prior year quarter reflects substantially lower selling prices driven by lower petrochemical and fuel-related prices that were approximately half of fiscal 2009 first quarter levels, partially offset by 12% higher sales volume. The 30% sequential improvement reflects significant improvement in average selling prices, partially offset by 9% lower sales volume. First quarter net income was $3.7 million, or $0.21 per diluted share, compared to $1.4 million, or $0.08 per diluted share, for the prior year quarter and $7.8 million, or $0.44 per diluted share, for the immediately preceding quarter. First quarter Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and additional items) was $20.0 million compared to $18.3 million for the year ago quarter and $33.7 million for the fourth quarter of fiscal 2009. Fourth quarter Adjusted EBITDA benefited from the partial recovery of a business interruption claim of $10.0 million. (Note: Adjusted EBITDA is a non-GAAP financial measure and is reconciled below to net income, the most closely related GAAP measure). Charlie Shaver, President and CEO, commented, "I am quite pleased with our fiscal 2010 first quarter results considering the generally weak economic conditions that persisted throughout the quarter. Our business lines continue to experience an upward trend in selling prices across our product lines, and we are seeing improved stability in our profit margins. The increases in our selling prices, to a significant degree, reflect tightness in the finished butadiene market and the upward movement in petroleum prices over the course of the quarter. Our first quarter results benefited from the profit improvement and cost reduction initiatives completed in the fiscal 2009 fourth quarter."Fiscal First Quarter 2010 Highlights:
Investor Relations
Contact: Robert Whitlow
Email: robert.whitlow@txpetrochem.com
Phone: 713-627-7474
Contact: Ruth Dreessen
Email: ruth.dreessen@txpetrochem.com
Phone: 713-627-7474
Media Relations
Contact: Sara Cronin
Email: sara.cronin@txpetrochem.com
Phone: 713-627-7474
- tables to follow -
TEXAS PETROCHEMICALS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
September 30, June 30,
2009 2009
---- ----
Unaudited
ASSETS
Current assets
Cash and cash equivalents $- $6.6
Accounts receivable - trade 130.6 98.5
Inventories 88.1 36.9
Other current assets 22.6 20.3
---- ----
Total current assets 241.3 162.3
Property, plant and equipment, net 507.7 516.3
Investment in limited partnership 2.8 2.8
Intangible assets, net 6.0 6.0
Other assets, net 20.9 22.4
---- ----
Total assets $778.7 $709.8
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable - trade $109.9 $86.7
Accrued liabilities 19.3 19.2
Current portion of long-term debt 7.7 2.7
--- ---
Total current liabilities 136.9 108.6
Long-term debt 304.4 269.9
Deferred income taxes 54.2 52.1
---- ----
Total liabilities 495.5 430.6
Stockholders' equity 283.2 279.2
----- -----
Total liabilities and
stockholders' equity $778.7 $709.8
====== ======
TEXAS PETROCHEMICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
Three Months Ended
-------------------------
September 30, June 30,
--------------- --------
2009 2008 2009
---- ---- ----
Revenues $340.2 $543.3 $260.9
Cost of sales 282.4 481.2 198.7
----- ----- -----
Gross profit 57.8 62.1 62.2
Operating expenses 32.8 36.9 33.2
General and administrative expenses 5.7 9.0 7.4
Depreciation and amortization 10.3 10.0 10.5
Asset impairments - - 6.0
Insurance recoveries - - (10.0)
--- --- -----
Income from operations 9.0 6.2 15.1
Other (income) expense
Interest expense 3.7 4.1 3.7
Unrealized loss (gain) on derivatives (0.2) 0.4 (0.3)
Other, net (0.4) (0.5) (0.5)
---- ---- ----
Income before income taxes 5.9 2.2 12.2
Income tax expense 2.2 0.8 4.4
--- --- ---
Net income $3.7 $1.4 $7.8
==== ==== ====
Earnings per share:
Basic $0.21 $0.08 $0.44
Diluted $0.21 $0.08 $0.44
Weighted average shares outstanding:
Basic 17.8 17.8 17.7
Diluted 17.8 18.2 17.7
TEXAS PETROCHEMICALS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In millions)
Three Months Ended
-----------------------
September 30, June 30,
------------- --------
2009 2008 2009
---- ---- ----
Cash flows from operating activities $(44.5) $4.9 $27.9
------ ---- -----
Cash flows from investing activities
Capital expenditures (1.6) (7.8) (1.1)
---- ---- ----
(1.6) (7.8) (1.1)
Cash flows from financing activities
Repayments on term loans (0.7) (0.7) (0.7)
Net proceeds from (payments on) revolving
credit facility borrowings 35.2 2.5 (19.0)
Repurchase of common stock - (3.0) -
Net proceeds from (payments on) insurance debt 5.0 4.2 (1.1)
Other financing activities cash flows - - 0.2
--- --- ---
39.5 3.0 (20.6)
Increase (decrease) in cash and cash equivalents (6.6) 0.1 6.2
Cash and cash equivalents at beginning of period 6.6 0.6 0.4
--- --- ---
Cash and cash equivalents at end of period $- $0.7 $6.6
=== ==== ====
TEXAS PETROCHEMICALS, INC.
BUSINESS SEGMENT INFORMATION
(Unaudited) (In millions)
Three Months Ended
------------------------
September 30, June 30,
------------- --------
2009 2008 2009
---- ---- ----
Sales volumes (lbs)
C4 Processing 591.2 511.5 692.7
Performance Products 166.7 165.3 137.8
----- ----- -----
757.9 676.8 830.5
===== ===== =====
Revenues
C4 Processing 267.0 414.9 205.6
Performance Products 73.2 128.4 55.3
---- ----- ----
340.2 543.3 260.9
===== ===== =====
Cost of sales (1)
C4 Processing 222.2 376.4 154.5
Performance Products 60.2 104.8 44.2
---- ----- ----
282.4 481.2 198.7
===== ===== =====
Adjusted EBITDA
C4 Processing $21.1 $10.5 $37.3
Performance Products 3.9 14.7 1.7
Corporate (5.0) (6.9) (5.3)
---- ---- ----
$20.0 $18.3 $33.7
===== ===== =====
(1) Excludes depreciation and amortization and operating expenses.
TEXAS PETROCHEMICALS, INC.
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME
(Unaudited) (in millions)
Adjusted EBITDA, a non-GAAP financial measure, is presented and discussed
in this earnings release because management believes it enhances
understanding by investors and lenders of the Company's financial
performance. Adjusted EBITDA is the primary performance measurement used
by senior management and our Board of Directors to evaluate operating
results and to allocate capital resources between our business segments.
A non-GAAP financial measure is a numerical measure of a company's
historical or future financial performance, financial position or cash
flows that excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP in the
statements of operations, balance sheets, or statements of cash flows (or
equivalent statements) of the Company; or includes amounts, or is subject
to adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated and
presented. In this regard GAAP refers to generally accepted accounting
principles in the United States. Provided below is a reconciliation of
Adjusted EBITDA (non-GAAP financial measure) to net income (most directly
comparable GAAP financial measure).
Three Months Ended
------------------------
September 30, June 30,
------------- --------
2009 2008 2009
---- ---- ----
Adjusted EBITDA
C4 processing $21.1 $10.5 $37.3
Performance products 3.9 14.7 1.7
Corporate (5.0) (6.9) (5.3)
---- ---- ----
20.0 18.3 33.7
---- ---- ----
Reconciliation
Income taxes (2.2) (0.8) (4.4)
Interest expense, net (3.7) (4.1) (3.7)
Depreciation and amortization (10.3) (10.0) (10.5)
Asset impairment - - (6.0)
Non-cash stock-based compensation (0.3) (1.6) (1.6)
Unrealized (loss) gain on derivatives 0.2 (0.4) 0.3
--- ---- ---
Net income $3.7 $1.4 $7.8
==== ==== ====
SOURCE Texas Petrochemicals, Inc.
Copyright 2009 PR Newswire
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