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Innophos Holdings, Inc. Reports Fourth Quarter And Full Year 2012 Results



  Innophos Holdings, Inc. Reports Fourth Quarter And Full Year 2012 Results

PR Newswire

CRANBURY, N.J., Feb. 14, 2013

CRANBURY, N.J., Feb. 14, 2013 /PRNewswire/ -- Innophos Holdings, Inc. (NASDAQ:
IPHS), a leading international producer of performance-critical and
nutritional specialty ingredients, with applications in food, beverage,
dietary supplements, pharmaceutical, oral care and industrial end markets,
today announced its financial results for the fourth quarter and full year
2012.

Fourth Quarter Results

  o Net sales for the fourth quarter 2012 were $209 million, flat with fourth
    quarter 2011. 
  o Specialty Phosphates fourth quarter 2012 sales of $185 million decreased
    1% compared to fourth quarter 2011.
  o US/Canada Specialty Phosphates sales were up 4% entirely on growth related
    to acquisitions. Excluding acquisition benefits, sales were level compared
    to last year with the business experiencing a greater than normal seasonal
    slowdown arising from year-end customer destocking actions.
  o Mexico Specialty Phosphates sales improved on a sequential basis but were
    lower by 11% compared to the year ago period.
  o GTSP & Other sales at $24 million for the 2012 fourth quarter were $1
    million above the year ago level on lower market prices, but higher
    volumes.    
  o Diluted EPS ^ for the fourth quarter 2012 was $0.60 compared to $0.93 for
    the fourth quarter 2011.  Included in the current quarter was $0.02 per
    share expense for accelerated deferred financing and interest rate
    premiums related to the senior credit facility refinanced in December
    2012.  The fourth quarter 2011 results included a $0.05 per share benefit
    for changes in estimates on Mexican water duty charges and currency
    translation effects on the Mexican effective tax rate.  Giving effect to
    these adjustments, fourth quarter 2012 diluted EPS would have been $0.62
    compared to $0.88 for the fourth quarter 2011. 

Full Year Results

  o Net sales for 2012 were $862 million, a 6% increase over 2011. 
  o Specialty Phosphates 2012 sales of $758 million increased 6% compared to
    2011 primarily on higher prices. US/Canada organic volumes were flat, and
    acquisitions added 3% growth which exceeded a decline in Mexico
    volumes.   
  o GTSP & Other sales at $105 million for 2012 were $6 million above the year
    ago level on lower market prices, but higher volumes.
  o Diluted EPS ^ for 2012 was $3.30 compared to $3.83 for 2011.  The fourth
    quarter adjustment items noted above, together with earlier adjustments
    noted in prior quarters, amounted to $0.22 per share for full year 2012
    and $0.02 per share for full year 2011.  Giving effect to these
    adjustments, 2012 diluted EPS would have been $3.08 compared to $3.81 for
    2011. 

Randy Gress, CEO of Innophos, commented on the results, "I am satisfied with
the progress we made throughout 2012 in delivering on our strategic objectives
and positioning the business for future growth. However, our results in 2012
have also reflected the challenging market conditions we have experienced. 
The environment was particularly reflected in the fourth quarter, as the
timing of the holiday season, combined with customer efforts to reduce
inventories in an uncertain demand environment, resulted in a significantly
more pronounced fourth quarter seasonal slowdown in our US and Canada
Specialty Phosphates business.  That said, volumes have since recovered
strongly in January 2013, which gives us confidence that the effect was
limited to the fourth quarter." 

Mr. Gress continued, "Our strategic accomplishments in 2012 included two
acquisitions in the attractive high growth nutritional ingredients space, as
well as a significant step forward in the resources and capabilities dedicated
to developing our business in higher growth geographies such as the Asia
Pacific region.  Our latest acquisition, Triarco, was completed on December
31^st, and I believe Triarco's botanical and enzyme based ingredients business
will prove highly complementary to the two mineral ingredients businesses,
Kelatron and AMT, that we acquired in late 2011 and mid-2012. Through these
acquisitions we have built a strong platform for future growth that will also
support growth in our Specialty Phosphate product range."       

Mr. Gress concluded, "Looking ahead to the coming year, we are encouraged by
what looks to be a strong start and we are confident of continued success with
our strategic initiatives. We will also continue to take the necessary steps
to ensure we are maximizing shareholder value by leveraging our strong cash
flow and balance sheet both to invest in growth and improve cash returns to
shareholders, and I expect 2013 to show further progress against both of these
goals."

Segment Results – full year and fourth quarter 2012 versus 2011

Specialty Phosphates

For the full year, Specialty Phosphates sales revenue was up 6% year over year
with prices up 5%.  US/Canada volumes were up 4%, with moderately lower market
demand offset by growth initiatives, while acquisitions contributed 3% to
growth. Mexico volumes were also affected adversely by lower market demand. 

For the quarter, Specialty Phosphates sales revenue was down 1% year over
year.

Full year operating income at $108 million was $8 million below 2011 levels as
the effects of 2011's market raw material cost inflation were more fully
realized in cost of goods sold, thus catching up to selling price increases
achieved in earlier periods.  Operating income margin for 2012 was 14%, down
210 basis points from 2011 levels, with US/Canada at 15% and Mexico at its
expected 12%. 

For the quarter, operating income at $20 million was $6 million below fourth
quarter 2011 levels primarily due to lower volumes in Mexico. Fourth quarter
operating income margin was 11%, down 290 basis points against the fourth
quarter 2011 and down 240 points sequentially, with lower volumes and
unfavorable mix the primary reason for the quarter margin sequential decline. 

US/Canada

US/Canada Specialty Phosphates sales increased 8% for 2012 on 5% higher prices
and 3% growth from acquisitions.  Excluding acquisitions, volumes were flat
due to moderately lower market demand offset by growth initiatives. 

For the quarter, sales increased 4%, all attributable to acquisitions. Prices
were flat with the year ago period, while continuing success with growth
initiatives was fully offset by a greater than anticipated year-end destocking
effect.       

Operating income at $86 million for 2012 was $8 million below 2011, as the
effects described above of raw material cost increases catching up to selling
price increases outweighed the selling price increases recognized in 2012. As
a result, operating income margins for 2012 at 15% were 280 basis points below
2011 levels. 

For the fourth quarter 2012, operating income of $16 million was similar to
the year ago quarter, but down $7 million sequentially, resulting in an
operating margin of 12%, down 90 basis points against fourth quarter 2011 and
down 420 basis points sequentially.  The large sequential decline is primarily
due to lower volumes causing lower cost leverage with unfavorable product mix
also contributing.

Mexico

Mexico Specialty Phosphates 2012 sales were 1% above 2011 on 6% higher prices,
but 5% lower volumes, due to soft market demand.  

Fourth quarter 2012 volumes improved sequentially to similar levels seen in
the 2012 first half. However, fourth quarter sales were down 11% against a
very strong fourth quarter 2011, with prices down 5% in the less
differentiated technical grade products and volumes down 6%.   

Operating income at $22 million for 2012 was flat with 2011 despite the
previously noted lower volumes.  Operating income margin was 12% for 2012,
level with 2011.

For the fourth quarter 2012, operating income of $5 million was down $5
million from fourth quarter 2011 levels, but up $2 million sequentially.  The
variance against prior year is primarily due to lower sales, along with $2
million of planned maintenance outage expenses in the current quarter. 
 Operating income margin was 10% for the 2012 fourth quarter, below the full
year average, as a result of the higher maintenance expense. 

GTSP & Other

GTSP & Other sales (primarily fertilizer co-product) increased 6% for 2012
compared to 2011, with volumes up 19% but prices down 13% on average.  Market
prices increased during the first half of 2012, but fell throughout the second
half, returning back to the seasonal lows seen at the beginning of the year.  

For the fourth quarter, sales increased 2% compared to fourth quarter 2011,
with volumes up 14%, but prices down 12%.  

GTSP & Other recorded $2 million of operating income in 2012 compared to $21
million for 2011.  Included in the 2012 results is $7 million of income
related to the settlement with Rhodia over Mexican water duties charges and $2
million of adjustments related to prior periods.  2011 included $3 million of
income resulting from a reduction in the provision for excess Mexican water
duties charges.  Excluding these adjustments, 2012 had an operating loss of $3
million compared to an operating income of $18 million for 2011.  Operating
income margins were -3% for 2012 compared to 18% for 2011, excluding the noted
adjustments.

For the fourth quarter 2012, GTSP & Other was just above break-even at $0.5
million, down $4 million from the year ago period on a combination of lower
phosphate fertilizer market prices and relatively high market raw material
costs.  Operating income margins were 2% for the fourth quarter 2012 compared
to 20% for the fourth quarter 2011.

Recent Trends and Outlook

Market demand was flat to moderately lower in 2012, with this trend
accentuated by the year-end destocking already noted. Although we are
encouraged by what looks to be a strong start to 2013, this partly represents
a carry-over of December orders to January, and we remain cautious on overall
demand levels for 2013.

Momentum continues to improve in our product innovation and geographic
expansion initiatives; however, we currently expect only modest market growth
in 2013. Overall, we expect growth in Specialty Phosphates around the low end
of our 4-6% long term target, with further growth of approximately 5%
anticipated from the full year benefit of acquisitions completed in 2012. 
First quarter 2013 revenue growth is expected to be moderately below the full
year expectation in comparison to a strong first quarter 2012 for Mexico
Specialty Phosphates.

We do not expect any major change in raw material purchase prices or
underlying selling prices through the first quarter 2013. However, the US &
Canada segment will have higher sequential costs of goods sold in the first
quarter reflecting purchase accounting effects for the Triarco acquisition. 

We will see a further significant reduction in depreciation as the stepped up
asset values created at the formation of the Company in 2004 reach the end of
their depreciation lives. This will be partly offset by the amortization of
the intangibles associated with recent acquisitions. Overall, we expect
depreciation and amortization expense to be $7 million lower in 2013 than in
2012, of which $4.5 million will benefit Specialty Phosphates.  This benefit,
combined with improved mix and better operating leverage, is expected to
increase Specialty Phosphates operating income margins by approximately 200
basis points sequentially.  We expect full year Specialty Phosphates operating
income margins to be similar to the 15% achieved for the first three quarters
of 2012.

For the short term, GTSP is expected to continue near break-even through the
first quarter. As with last year, fertilizer prices have been declining
through the winter period, and no improvement in pricing is anticipated before
the second quarter.  Mining expenses for the development of our Mexico
phosphate concessions were lower than initially anticipated in the second half
of 2012 and are expected to continue at approximately their current run rate
for the first half of 2013.

Net debt increased by $69 million in the 2012 fourth quarter to $149 million
resulting primarily from the $45 million of cash paid for the Triarco
acquisition and a temporary increase in Mexico working capital.

Capital Expenditures

Capital expenditures were $33 million in 2012, with a higher spend rate in the
fourth quarter as activity increased on some of the larger initiatives that
had been delayed from earlier in the year by changes in engineering
specifications. Investment continues to be focused on capacity enhancements
for US/Canada and Mexico Specialty Ingredients facilities, expanding
geographically, including the investment in China, and enhancing Mexico's
capability to process multiple grades of rock, consistent with the Company's
supply chain diversification strategy.  Our expectation for 2013 is for
capital expenditures in the $40-45 million range.

About Innophos Holdings, Inc.

Innophos is a leading international producer of performance-critical and
nutritional specialty ingredients, with applications in food, beverage,
dietary supplements, pharmaceutical, oral care and industrial end markets. 
Innophos combines more than a century of experience in specialty phosphate
manufacturing with a growing capability in a broad range of other specialty
ingredients to supply a product range produced to stringent regulatory
manufacturing standards and the quality demanded by customers worldwide. 
Innophos is continually developing new and innovative specialty ingredients
addressing specific customer applications and supports these high-value
products with industry-leading technical service.  Headquartered in Cranbury,
New Jersey, Innophos has manufacturing operations in Nashville, TN; Chicago
Heights, IL; Chicago (Waterway), IL; Geismar, LA; Ogden, UT; North Salt Lake,
UT; Paterson, NJ; Green Pond, SC; Port Maitland, ON (Canada); and
Coatzacoalcos, Veracruz and San Jose de Iturbide (Mission Hills), Guanajuato
(Mexico). For more information please visit www.innophos.com. 'IPHS-G'

Financial Tables Follow

Innophos Holdings, Inc.                                        FTI Consulting,
                                                               Inc.
                                                               Alexandra
Investor Relations: (609) 366-1299                             Tramont/Matt
                                                               Steinberg
investor.relations@innophos.com                                212-850-5600

Conference Call Details

The conference call is scheduled for Friday, February 15, 2013 at 10:00 am ET
and can be accessed by dialing 888-206-4065  (U.S.) or 630-827-5974
(international) and entering passcode 34232459.  Please dial in approximately
15 minutes ahead of the start time to ensure timely entry to the call.  A
replay will be available between 1:00 pm ET on February 15 and 1:00 pm ET on
February 28, 2013.  The replay is accessible by dialing 888-843-7419 (U.S.) or
630-652-3042 (international) and entering passcode 6861213#.

Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended.  As such, final results could
differ from estimates or expectations due to risks and uncertainties,
including but not limited to: incomplete or preliminary information; changes
in government regulations and policies; continued acceptance of Innophos'
products and services in the marketplace; competitive factors; technological
changes; Innophos' dependence upon fourth-party suppliers; and other risks. 
For any of these factors, Innophos claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995, as amended.

Summary Profit & Loss Statement – Fourth Quarter

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Operations (Unaudited)
(Dollars In thousands, except per share amounts or share amounts)
                                        Three months ended  Three months ended
                                        December 31,        December 31,
                                        2012                2011
Net sales                               $208,779            $209,160
Cost of goods sold                      172,374             159,568
Gross profit                            36,405              49,592
Operating expenses:
     Selling, general and               14,633              18,426
administrative
     Research & development expenses    787                 718
     Total operating expenses           15,420              19,144
Operating income                        20,985              30,448
Interest expense, net                   1,441               1,639
Foreign exchange loss (gain)            242                 (1,143)
Income before income taxes              19,302              29,952
Provision for income taxes              5,910               9,002
Net income                              $13,392             $20,950
Diluted Earnings Per Share              $0.60               $0.93
Diluted weighted average common shares  22,349,160          22,500,590
outstanding:
Dividends paid per share of common      $0.35               $0.25
stock
Dividends declared per share of common  $0.35               $0.25
stock

Segment Reporting – Fourth Quarter

The Company reports its operations in three segments: Specialty Phosphates US
& Canada, Specialty Phosphates Mexico and GTSP & Other.  The primary
performance indicators for the chief operating decision maker are sales and
operating income, with sales on a ship-from basis.  Sales on a ship-from basis
are on the same revenue recognition as a ship-to basis and are recognized when
delivery has occurred and title and risk of loss passes to the customer.  The
following table sets forth the historical results of these indicators by
segment:                   

                                   Three months     Three months
                                   ended            ended
                                   December 31,     December 31,    Net Sales
                                   2012             2011            % Change
Segment Net Sales
Specialty Phosphates US & Canada   $137,288         $132,400        3.7%
Specialty Phosphates Mexico        47,792           53,577          -10.8%
Total Specialty Phosphates         185,080          185,977         -0.5%
GTSP & Other                       23,699           23,183          2.2%
Total                              $208,779         $209,160        -0.2%
Segment Operating Income
Specialty Phosphates US & Canada   $15,740          $16,442
Specialty Phosphates Mexico        4,757            9,590
Total Specialty Phosphates         20,497           26,032
GTSP & Other (a)                   488              4,416
Total                              $20,985          $30,448
Segment Operating Income %  of net
sales
Specialty Phosphates US & Canada   11.5%            12.4%
Specialty Phosphates Mexico        10.0%            17.9%
Total Specialty Phosphates         11.1%            14.0%
GTSP & Other (a)                   2.1%             19.0%
Total                              10.1%            14.6%
Depreciation and amortization
expense
Specialty Phosphates US & Canada   $5,935           $4,911
Specialty Phosphates Mexico        3,345            5,236
Total Specialty Phosphates         9,280            10,147
GTSP & Other                       937              1,086
Total                              $10,217          $11,233
(a) The three month period ended December 31, 2011 includes a $0.2 million
charge to earnings related to 
      updates to the provision for Mexican water
duties.

Price / Volume – Fourth Quarter

The Company calculates pure selling price dollar variances as the selling
price for the current year to date period minus the selling price for the
prior year to date period, and then multiplies the resulting selling price
difference by the prior year to date period volume.  The current quarter
selling price dollar variance is derived from the current quarter year to date
selling price dollar variance less the previous quarter year to date selling
price dollar variance.  The selling price dollar variance is then divided by
the prior period sales dollars to calculate the percentage change.  Volume
variance is calculated as the total sales variance minus the selling price
variance and refers to the revenue effect of changes in tons sold at the
relative prices applicable to the variation in tons, otherwise known as
volume/mix.

The following tables illustrate for the three months ended December 31, 2012
the percentage changes in net sales by reportable segments and by Specialty
Phosphates product lines compared with the same period of the prior year,
including the effect of selling price and volume/mix changes upon revenue:

Reportable Segments                  Price          Volume/Mix        Total  
Specialty Phosphates US & Canada   -0.1%            3.8%            3.7%
Specialty Phosphates Mexico        -5.0%            -5.8%           -10.8%
Total Specialty Phosphates         -1.5%            1.0%            -0.5%
GTSP & Other                       -11.7%           13.9%           2.2%
Total                              -2.7%            2.5%            -0.2%
Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US &
Canada 
          Volume/Mix and 2.6% in Total Specialty Phosphates
Volume/Mix
Specialty Phosphates Product Lines   Price          Volume/Mix        Total  
Specialty Ingredients              -1.1%            -0.6%           -1.7%
Food & Technical Grade PPA         -4.7%            8.1%            3.4%
STPP & Detergent Grade PPA         1.5%             -1.5%           0.0%
Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients
Volume/Mix

Summary Profit & Loss Statement – Full Year

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Operations (Unaudited)
(Dollars In thousands, except per share amounts or share amounts)
                                                     

                                                    Year Ended December 31
                                                    2012        2011
Net sales                                           $862,399    $810,487
Cost of goods sold                                  684,979     605,172
Gross profit                                        177,420     205,315
Operating expenses:
     Selling, general and administrative            64,320      65,380
     Research & development expenses                3,107       2,923
     Total operating expenses                       67,427      68,303
Operating income                                    109,993     137,012
Interest expense, net                               5,977       5,726
Foreign exchange (gain) loss                        (1,957)     875
Income before income taxes                          105,973     130,411
Provision for income taxes                          31,783      43,889
Net income                                          $74,190     $86,522
Diluted Earnings Per Share                          $3.30       $3.83
Diluted weighted average common shares outstanding: 22,475,881  22,578,567
Dividends paid per share of common stock            $1.14       $0.92
Dividends declared per share of common stock        $0.89       $1.00

Segment Reporting – Full Year

The Company reports its operations in three segments: Specialty Phosphates US
& Canada, Specialty Phosphates Mexico and GTSP & Other.  The primary
performance indicators for the chief operating decision maker are sales and
operating income, with sales on a ship-from basis.  Sales on a ship-from basis
are on the same revenue recognition as a ship-to basis and are recognized when
delivery has occurred and title and risk of loss passes to the customer.  The
following table sets forth the historical results of these indicators by
segment:                   

                                 
                                                                  Net Sales
                                Year ended December 31
                                2012               2011           % Change
Segment Net Sales
Specialty Phosphates US &       $569,816           $525,662       8.4%
Canada
Specialty Phosphates Mexico     187,743            186,211        0.8%
Total Specialty Phosphates      757,559            711,873        6.4%
GTSP & Other                    104,840            98,614         6.3%
Total                           $862,399           $810,487       6.4%
Segment Operating Income
Specialty Phosphates US &       $86,002            $94,055
Canada
Specialty Phosphates Mexico     21,913             21,948
Total Specialty Phosphates      107,915            116,003
GTSP & Other (a) (b)            2,078              21,009
Total                           $109,993           $137,012
Segment Operating Income %  of
net sales
Specialty Phosphates US &       15.1%              17.9%
Canada
Specialty Phosphates Mexico     11.7%              11.8%
Total Specialty Phosphates      14.2%              16.3%
GTSP & Other (a) (b)            2.0%               21.3%
Total                           12.8%              16.9%
Depreciation and amortization
expense
Specialty Phosphates US &       $23,215            $19,808
Canada
Specialty Phosphates Mexico     14,578             18,050
Total Specialty Phosphates      37,793             37,858
GTSP & Other                    4,542              5,818
Total                           $42,335            $43,676
(a) The year ended December 31, 2012 includes a $7.1 million benefit to
earnings primarily for the settlement
      with Rhodia on their liability for the charges to be paid for Mexican
water duties and a $2.4 million charge
      to earnings for prior
period adjustments.
(b) The year ended December 31, 2011 includes a $3.4 million benefit to
earnings related to updates to the
      provision for Mexican
water duties.

Price / Volume – Full Year

The Company calculates pure selling price dollar variances as the selling
price for the current year to date period minus the selling price for the
prior year to date period, and then multiplies the resulting selling price
difference by the prior year to date period volume.  The current quarter
selling price dollar variance is derived from the current quarter year to date
selling price dollar variance less the previous quarter year to date selling
price dollar variance.  The selling price dollar variance is then divided by
the prior period sales dollars to calculate the percentage change.  Volume
variance is calculated as the total sales variance minus the selling price
variance and refers to the revenue effect of changes in tons sold at the
relative prices applicable to the variation in tons, otherwise known as
volume/mix.

The following tables illustrate for the year ended December 31, 2012 the
percentage changes in net sales by reportable segments and by Specialty
Phosphates product lines compared with the same period of the prior year,
including the effect of selling price and volume/mix changes upon revenue:

Reportable Segments                  Price          Volume/Mix        Total  
Specialty Phosphates US & Canada   4.8%             3.6%            8.4%
Specialty Phosphates Mexico        6.1%             -5.3%           0.8%
Total Specialty Phosphates         5.1%             1.3%            6.4%
GTSP & Other                       -13.2%           19.5%           6.3%
Total                              2.9%             3.5%            6.4%
Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US &
Canada 
          Volume/Mix and 2.7% in Total Specialty Phosphates
Volume/Mix
Specialty Phosphates Product Lines   Price          Volume/Mix        Total  
Specialty Ingredients              4.8%             1.0%            5.8%
Food & Technical Grade PPA         6.4%             7.2%            13.6%
STPP & Detergent Grade PPA         4.8%             -5.4%           -0.6%
Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients
Volume/Mix

Summary Cash Flow Statement 

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
                                                    Year ended    Year ended
                                                    December 31,  December 31,
                                                    2012          2011
Cash flows from operating activities
     Net income                                     $74,190       $86,522
     Adjustments to reconcile net income to net cash provided
from
     operating activities:
          Depreciation and amortization             42,334        43,676
          Amortization of deferred financing        884           608
charges
          Deferred income tax provision             167           5,379
          Deferred profit sharing                   -             (286)
          Share-based compensation                  1,912         6,250
     Changes in assets and liabilities:
         Decrease (increase) in accounts receivable 13,017        (28,154)
         Decrease (increase) in inventories         12,154        (45,021)
         (Increase) decrease in other current       (21,283)      3,238
assets
         Increase (decrease) in accounts payable    2,059         (5,939)
         Decrease in other current liabilities      (20,573)      (14,685)
         Changes in other long-term assets and      (3,456)       (5,242)
liabilities
                Net cash provided from operating    101,405       46,346
activities
Cash flows from investing activities:
      Capital expenditures                          (33,060)      (34,195)
      Acquisition of businesses, net of cash        (71,706)      (20,533)
acquired
               Net cash used for investing          (104,766)     (54,728)
activities
Cash flows used for financing activities:
     Proceeds from exercise of stock options        528           484
     Long-term debt borrowings                      333,000       22,000
     Long-term debt repayments                      (309,000)     (19,000)
     Deferred financing costs                       (1,461)       -
     Excess tax benefits from exercise of stock     3,931         2,511
options
     Common stock repurchases                       (7,254)       (6,156)
     Dividends paid                                 (24,810)      (19,921)
              Net cash used for financing           (5,066)       (20,082)
activities
Net change in cash                                  (8,427)       (28,464)
Cash and cash equivalents at beginning of period    35,242        63,706
Cash and cash equivalents at end of period          $26,815       $35,242

Summary Balance Sheets 

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars In thousands)
                                                December 31,    December 31,  

                                                2012            2011
ASSETS
Current assets:
     Cash and cash equivalents                  $26,815         $35,242
     Accounts receivable - trade                94,033          104,421
     Inventories                                163,606         169,728
     Other current assets                       94,561          75,316
               Total current assets             379,015         384,707
Property, plant and equipment, net              195,723         187,421
Goodwill                                        83,214          61,587
Intangibles and other assets, net               79,225          53,300
               Total assets                     $737,177        $687,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Current portion of long-term debt          $4,000          $4,000
     Accounts payable, trade and other          36,485          32,640
     Other current liabilities                  46,030          71,609
               Total current liabilities        86,515          108,249
Long-term debt                                  172,000         148,000
Other long-term liabilities                     34,339          37,558
               Total liabilities                292,854         293,807
               Total stockholders' equity       444,323         393,208
               Total liabilities and            $737,177        $687,015
stockholders' equity

Additional Information
Net debt is a supplemental financial measure that is not required by, or
presented in accordance with, USGAAP.  The Company believes net debt is
helpful in analyzing leverage and as a performance measure for purposes of
presentation in this release. The Company defines net debt as total long-term
debt (including any current portion) less cash and cash equivalents.

SOURCE Innophos Holdings, Inc.

Website: http://www.innophos.com
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