Valvoline International, Inc. produces, markets, and distributes automotive lubricants and chemicals for consumer, and commercial and industrial applications. The company’s consumer products include motor oil, antifreeze and radiator products, brake fluids, power steering products, automatic transmission products, fuel additives, spray lubricants, greases and gear oils, engine and parts cleaners, and maintenance products. Its commercial and industrial products comprise OEM endorsed products, heavy duty diesel engine oils, diesel exhaust fluids, natural gas engine oils, heavy duty chemicals, transmission fluids and gear oils, greases, and hydraulic and industrial oils. The company also operat...
3499 Blazer Parkway
Lexington, KY 40509
Founded in 1918
Valvoline Announces Unaudited Earnings and Operating Results for the Fourth Quarter and Year Ended September 30, 2015; Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2016
Nov 3 15
Valvoline announced unaudited earnings and operating results for the fourth quarter and year ended September 30, 2015. For the quarter, the company reported sales of $484 million against $520 million a year ago. Operating income was $87 million against $77 million of prior year. Additions to property, plant and equipment were $19 million against $17 million of prior year. Income from continuing operations was $87 million against $77 million of prior year. Adjusted EBITDA was $97 million against $87 million a year ago. The company reported record fourth-quarter earnings with EBITDA rising 11%, to $97 million, versus the prior year. This marks the eighth consecutive quarter of year-over-year EBITDA growth. Results were driven by continued margin management, strong channel and product mix, strong same-store sales at Valvoline Instant Oil ChangeSM (VIOC), and solid overall volume growth. Same-store sales at company-owned sites grew by nearly 9%.
For the year, the company reported sales of $1,967 million against $2,041 million a year ago. Operating income was $359 million against $323 million of prior year. Additions to property, plant and equipment were $45 million against $36 million of prior year. Income from continuing operations was $359 million against $323 million of prior year.
For the quarter, the company reported lubricant sales of 43.5 gallons compared to 41.5 gallons a year ago. Premium lubricants were 40.7% compared to 37.8% a year ago.
For the year, the company reported lubricant sales of 167.4 gallons compared to 162.6gallons a year ago. Premium lubricants were 40.2% compared to 37.1% a year ago.
For the fiscal first quarter of 2016, the company expects sales to be in the range of $470 million to $480 million consistent with normal seasonality patterns. EBITDA margin is expected to remain consistent at approximately 20%.
Management expects full-year EBITDA margin in fiscal 2016 to be approximately 21%, consistent with 2015 results. The company expects the long-term target to be in the range of 19% to 21%.