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Huntsman Reports Fourth Quarter And Full Year 2015 Results; 2015 Adjusted EPS Improves To $2.00 From $1.94 In 2014
PR Newswire

THE WOODLANDS, Texas, Feb. 11, 2016 /PRNewswire/ --

Fourth Quarter 2015 Highlights

  • Adjusted EBITDA was $240 million compared to $292 million in the prior year period and $311 million in the prior quarter.
  • Adjusted diluted income per share was $0.51 compared to $0.33 in the prior year period and $0.47 in the prior quarter.
  • Net income attributable to Huntsman Corporation was $4 million compared to net loss of $38 million in the prior year period and net income of $55 million in the prior quarter.
  • The stronger U.S. dollar reduced adjusted EBITDA by an estimated $24 million compared to the prior year period; a negative impact of approximately $0.07 loss per diluted share.
  • The combination of effective tax planning, certain unusual tax benefits and regional mix of income created an approximate $0.25 per diluted share net tax benefit during the fourth quarter 2015.
  • $100 million accelerated share repurchase program completed; $50 million authorization remaining.

Full Year 2015 Highlights

  • Adjusted EBITDA was $1,221 million compared to $1,340 million in the prior year.
  • Adjusted diluted income per share was $2.00 compared to $1.94 in the prior year.
  • Net income attributable to Huntsman Corporation was $93 million compared to $323 million in the prior year.
  • The stronger U.S. dollar reduced adjusted EBITDA by an estimated $136 million compared to the prior year; a negative impact of approximately $0.39 loss per diluted share.
  • Planned PO/MTBE maintenance at our Port Neches, TX facility reduced adjusted EBITDA in 2015 by approximately $95 million. This maintenance occurs approximately once every five years.

 



Three months ended


Twelve months
ended

December 31,



December 31,


September 30,


In millions, except per share amounts, unaudited


2015


2014


2015


2015


2014












Revenues


$2,332


$2,951


$            2,638


$10,299


$11,578












Net income (loss) attributable to Huntsman Corporation

$      4


$    (38)


$                55


$      93


$     323

Adjusted net income(1)


$   124


$     81


$              115


$     492


$     478












Diluted income (loss) per share


$  0.02


$ (0.16)


$             0.22


$    0.38


$    1.31

Adjusted diluted income per share(1)


$  0.51


$  0.33


$             0.47


$    2.00


$    1.94












EBITDA(1)


$   111


$   141


$              255


$     741


$  1,022

Adjusted EBITDA(1)


$   240


$   292


$              311


$  1,221


$  1,340












See end of press release for footnote explanations






Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2015 results with revenues of $2,332 million and adjusted EBITDA of $240 million

Peter R. Huntsman, our President and CEO, commented:

"During the fourth quarter this year, EBITDA from our cyclical businesses – which include our MTBE, ethylene and TiO2 products – decreased approximately $78 million compared to the prior year. This overshadowed the real strength of our portfolio which is in our downstream differentiated businesses.  Excluding approximately $24 million of foreign currency headwind, the EBITDA from our differentiated businesses improved approximately $50 million compared to the prior year or 27%.

"In 2016, primarily as a result of lower priced oil and a lower global economic growth environment, we expect continued EBITDA pressure on our cyclical businesses.  Growth from our differentiated businesses will offset cyclical pressure and inflationary costs such that we expect our 2016 EBITDA to be a similar amount to 2015.  Importantly however, we expect our free cash flow generation to improve by $350 million in 2016 through lower capital expenditures, restructuring and maintenance.  In 2016 we will continue to pursue actively a separation of our TiO2 business through a spinoff to shareholders or other strategic transaction."

Segment Analysis for 4Q15 Compared to 4Q14

Polyurethanes

The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower MTBE sales volumes.  MDI average selling prices decreased in response to lower raw material costs and the currency exchange impact of a stronger U.S. dollar primarily against the Euro.  PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline.  MDI sales volumes increased due to higher demand as well as competitor outages in the Asian region.  The decrease in adjusted EBITDA was primarily due to lower MTBE contribution margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro partially offset by higher MDI contribution margins.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended December 31, 2015 compared to the same period in 2014 was primarily due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily due to customer destocking and competitive pressure.  The decrease in adjusted EBITDA was primarily due to lower ethylene contribution margins partially offset by higher contribution margins in our amines business.

Advanced Materials

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices.  Sales volumes decreased primarily due to the de-selection of certain business, customer destocking and competitive pressure.  Average selling prices increased on a local currency basis in the Americas primarily due to our focus on higher value markets but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro globally.  The increase in adjusted EBITDA was primarily due to higher global contribution margins from lower raw material costs and higher selling prices in the Americas.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes.  Average selling prices increased on a local currency basis due to certain price increase initiatives but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions.  The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and product mix improvements.

Pigments and Additives

The decrease in revenues in our Pigments and Additives division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily as a result of titanium dioxide over supply in the market place and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily as a result of lower end use demand.  The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.

Corporate, LIFO and Other

Adjusted EBITDA from Corporate, LIFO and Other increased by $10 million to a loss of $38 million for the three months ended December 31, 2015 compared to a loss of $48 million for the same period in 2014.  The increase in adjusted EBITDA was primarily the result of an increase in income from benzene sales of $7 million.

Liquidity, Capital Resources and Outstanding Debt

As of December 31, 2015, we had $1,023 million of combined cash and unused borrowing capacity compared to $1,601 million on December 31, 2014.

On September 29, 2015, our Board of Directors authorized the repurchase of up to $150 million in shares of our common stock.  On October 27, 2015 we entered into and funded an accelerated share repurchase agreement to repurchase $100 million of our common stock.  The accelerated share repurchase was completed in January 2016 with 8.6 million shares repurchased.

During 2015 we spent $663 million on capital expenditures; we expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017. 

Income Taxes

During the three months ended December 31, 2015, we recorded an income tax benefit of $39 million as a result of the combination of effective tax planning, certain unusual tax benefits and the regional mix of income.  During the same period we paid $45 million in cash for income taxes. 

We expect our 2016 and long term adjusted effective tax rate to be approximately 30%.

Earnings Conference Call Information

We will hold a conference call to discuss our fourth quarter and full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET

Call-in numbers for the conference call:
U.S. participants                           (888) 713 - 4199
International participants                (617) 213 - 4861
Passcode                                     810 262 68#

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P8K7QH79L

Webcast Information

The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.

Replay Information

The conference call will be available for replay beginning February 11, 2016 and ending February 18, 2016.

Call-in numbers for the replay:
U.S. participants                           (888) 286 - 8010
International participants                (617) 801 - 6888
Replay code                                  29385180

 

Table 1 – Results of Operations




Three months ended


Twelve months ended



December 31,


December 31,

In millions, except per share amounts, unaudited


2015


2014


2015


2014










Revenues


$2,332


$2,951


$10,299


$11,578

Cost of goods sold


1,956


2,502


8,451


9,659

Gross profit


376


449


1,848


1,919

Operating expenses


282


317


1,141


1,128

Restructuring, impairment and plant closing costs


81


67


302


158

Operating income


13


65


405


633

Interest expense


(47)


(57)


(205)


(205)

Equity in income of investment in unconsolidated affiliates


1


-


6


6

Loss on early extinguishment of debt


-


(28)


(31)


(28)

Other income (loss)


3


(2)


1


(2)

(Loss) income before income taxes


(30)


(22)


176


404

Income tax benefit (expense)


39


(12)


(46)


(51)

Income (loss) from continuing operations


9


(34)


130


353

Loss from discontinued operations, net of tax(3)


-


(1)


(4)


(8)

Net income (loss)


9


(35)


126


345

Net income attributable to noncontrolling interests, net of tax


(5)


(3)


(33)


(22)

Net income (loss) attributable to Huntsman Corporation


$      4


$    (38)


$      93


$     323



















Adjusted EBITDA(1)


$   240


$   292


$  1,221


$  1,340










Adjusted net income(1)


$   124


$     81


$     492


$     478



















Basic income (loss) per share


$  0.02


$ (0.16)


$    0.38


$    1.33

Diluted income (loss) per share


$  0.02


$ (0.16)


$    0.38


$    1.31

Adjusted diluted income per share(1)


$  0.51


$  0.33


$    2.00


$    1.94










Common share information:









Basic shares outstanding


239


243


243


242

Diluted shares


241


243


245


246

Diluted shares for adjusted diluted income per share


241


247


245


246










See end of press release for footnote explanations

 

Table 2 – Results of Operations by Segment




Three months ended



Twelve months ended





December 31,


Better /

(Worse)


December 31,


Better /

(Worse)

In millions, unaudited


2015


2014



2015


2014















Segment Revenues:













Polyurethanes


$   909


$1,201


(24)%


$  3,811


$  5,032


(24)%

Performance Products


552


712


(22)%


2,501


3,072


(19)%

Advanced Materials


256


295


(13)%


1,103


1,248


(12)%

Textile Effects


186


203


(8)%


804


896


(10)%

Pigments & Additives


453


573


(21)%


2,160


1,549


39%

Eliminations and other


(24)


(33)


27%


(80)


(219)


63%














Total


$2,332


$2,951


(21)%


$10,299


$11,578


(11)%














Segment Adjusted EBITDA(1):












Polyurethanes


$   141


$   171


(18)%


$     573


$     722


(21)%

Performance Products


76


111


(32)%


460


473


(3)%

Advanced Materials


48


43


12%


220


199


11%

Textile Effects


13


6


117%


63


58


9%

Pigments & Additives


-


9


(100)%


61


76


(20)%

Corporate, LIFO and other


(38)


(48)


21%


(156)


(188)


17%














Total


$   240


$   292


(18)%


$  1,221


$  1,340


(9)%


See end of press release for footnote explanations

 

Table 3 – Pro Forma (2) Results of Operations by Segment




Three months ended



Twelve months ended





December 31,


Better /

(Worse)


December 31,


Better /

(Worse)

In millions, unaudited, pro forma


2015


2014



2015


2014















Segment Revenues:













Polyurethanes


$   909


$1,201


(24)%


$  3,811


$  5,053


(25)%

Performance Products


552


712


(22)%


2,501


3,072


(19)%

Advanced Materials


256


295


(13)%


1,103


1,248


(12)%

Textile Effects


186


203


(8)%


804


896


(10)%

Pigments & Additives


453


559


(19)%


2,160


2,673


(19)%

Eliminations and other


(24)


(33)


27%


(80)


(219)


63%














Pro forma total


$2,332


$2,937


(21)%


$10,299


$12,723


(19)%














Segment Adjusted EBITDA(1):












Polyurethanes


$   141


$   171


(18)%


$     573


$     728


(21)%

Performance Products


76


111


(32)%


460


473


(3)%

Advanced Materials


48


43


12%


220


199


11%

Textile Effects


13


6


117%


63


58


9%

Pigments & Additives


-


17


(100)%


61


225


(73)%

Corporate, LIFO and other


(38)


(48)


21%


(156)


(188)


17%














Pro forma total


$   240


$   300


(20)%


$  1,221


$  1,495


(18)%














See end of press release for footnote explanations

 

Table 4 – Factors Impacting Sales Revenues




Three months ended



December 31, 2015 vs. 2014



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other


Volume(b)


Total












Polyurethanes


(19)%


(4)%


2%


(3)%


(24)%

Performance Products


(11)%


(4)%


(1)%


(6)%


(22)%

Advanced Materials


2%


(8)%


1%


(8)%


(13)%

Textile Effects


2%


(7)%


0%


(3)%


(8)%

Pigments & Additives


(9)%


(7)%


(2)%


(3)%


(21)%

Total Company


(14)%


(5)%


2%


(4)%


(21)%














Twelve months ended



December 31, 2015 vs. 2014



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other(c)


Volume(b)


Total












Polyurethanes


(12)%


(5)%


3%


(10)%


(24)%

Performance Products


(7)%


(5)%


(3)%


(4)%


(19)%

Advanced Materials


2%


(8)%


(1)%


(5)%


(12)%

Textile Effects


1%


(6)%


2%


(7)%


(10)%

Pigments & Additives


(10)%


(8)%


62%


(5)%


39%

Total Company


(8)%


(6)%


10%


(7)%


(11)%

























Pro forma





Twelve months ended





December 31, 2015 vs. 2014





Average











Selling


Sales Mix


Sales





Unaudited, pro forma


Price(a)


& Other


Volume(b)


Total














Polyurethanes


(17)%


2%


(2)%


(17)%

(d)

Performance Products


(12)%


(3)%


(2)%


(17)%

(e)

Advanced Materials


(6)%


(1)%


(5)%


(12)%



Textile Effects


(5)%


2%


(7)%


(10)%



Pigments & Additives


(19)%


2%


(2)%


(19)%

(f)

Total Company


(15)%


2%


(2)%


(15)%





(a)

Excludes sales from tolling arrangements, by-products and raw materials.

(b)

Excludes sales from by-products and raw materials.

(c)

Includes impact from the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc. on October 1, 2014.

(d)

Excludes volume impact from planned maintenance at our PO/MTBE facility in 1H15.

(e)

Excludes volume impact from closure of our European surfactants plant in 2Q14.

(f)

Excludes volume impact from nitrogen tank incident at our Uerdingen, Germany facility in 3Q15.

 

Table 5 – Reconciliation of U.S. GAAP to Non-GAAP Measures








 Income Tax 


 Net Income (Loss) 


 Diluted Income 



 EBITDA 


 Benefit (Expense) 


 Attrib. to HUN Corp. 


 Per Share 



Three months ended


Three months ended


Three months ended


Three months ended



December 31,


December 31,


December 31,


December 31,

In millions, except per share amounts, unaudited


2015


2014


2015


2014


2015


2014


2015


2014


















GAAP(1)


$    111


$    141


$    39


$   (12)


$     4


$      (38)


$  0.02


$ (0.16)

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


22


40


(6)


(4)


16


36


0.07


0.15

Loss from discontinued operations, net of tax(3)


3


1


 N/A 


 N/A 


-


1


-


-

Loss (gain) on disposition of businesses/assets


1


(1)


-


-


1


(1)


-


-

Loss on early extinguishment of debt


-


28


-


(10)


-


18


-


0.07

Certain legal settlements and related expenses


1


-


-


-


1


-


-


-

Plant incident remediation costs


1


-


-


-


1


-


-


-

Amortization of pension and postretirement actuarial losses


18


14


(3)


-


15


14


0.06


0.06

Restructuring, impairment, plant closing and transition costs


83


69


3


(18)


86


51


0.36


0.21


















Adjusted(1)


$    240


$    292


$    33


$   (44)


$ 124


$       81


$  0.51


$  0.33


















Adjusted income tax (benefit) expense










(33)


44





Net income attributable to noncontrolling interests, net of tax










5


3






















Adjusted pre-tax income(1)










$   96


$      128






















Adjusted effective tax rate










-34%


34%













































 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


(Expense) Benefit


 Attrib. to HUN Corp. 


 Per Share 



Three months ended


Three months ended


Three months ended


Three months ended



September 30,


September 30,


September 30,


September 30,

In millions, except per share amounts, unaudited


2015


2015


2015


2015


















GAAP(1)


$    255




$   (49)




$   55




$  0.22



Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


10




(2)




8




0.03



Loss from discontinued operations, net of tax(3)


1




 N/A 




-




-



Loss on early extinguishment of debt


8




(3)




5




0.02



Certain legal settlements and related expenses


1




-




1




-



Plant incident remediation costs


3




(1)




2




0.01



Amortization of pension and postretirement actuarial losses


19




(4)




15




0.06



Restructuring, impairment, plant closing and transition costs


14




15




29




0.12




















Adjusted(1)


$    311




$   (44)




$ 115




$  0.47




















Adjusted income tax expense










44







Net income attributable to noncontrolling interests, net of tax










8
























Adjusted pre-tax income(1)










$ 167
























Adjusted effective tax rate










26%















































 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


 Expense (Benefit) 


 Attrib. to HUN Corp. 


 Per Share 



Twelve months ended


Twelve months ended


Twelve months ended


Twelve months ended



December 31,


December 31,


December 31,


December 31,

In millions, except per share amounts, unaudited


2015


2014


2015


2014


2015


2014


2015


2014


















GAAP(1)


$    741


$ 1,022


$   (46)


$   (51)


$   93


$      323


$  0.38


$  1.31

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


53


67


(13)


(10)


40


57


0.16


0.23

Impact of certain foreign tax credit elections


 N/A 


 N/A 


-


(94)


-


(94)


-


(0.38)

Loss from discontinued operations, net of tax(3)


6


10


 N/A 


 N/A 


4


8


0.02


0.03

Loss (gain) on disposition of businesses/assets


2


(3)


-


1


2


(2)


0.01


(0.01)

Loss on early extinguishment of debt


31


28


(11)


(10)


20


18


0.08


0.07

Certain legal settlements and related expenses


4


3


(1)


-


3


3


0.01


0.01

Plant incident remediation costs


4


-


(1)


-


3


-


0.01


-

Amortization of pension and postretirement actuarial losses


74


51


(17)


(10)


57


41


0.23


0.17

Restructuring, impairment, plant closing and transition costs


306


162


(36)


(38)


270


124


1.10


0.50


















Adjusted(1)


$ 1,221


$ 1,340


$ (125)


$ (212)


$ 492


$      478


$  2.00


$  1.94


















Adjusted income tax expense










125


212





Net income attributable to noncontrolling interests, net of tax










33


22






















Adjusted pre-tax income(1)










$ 650


$      712






















Adjusted effective tax rate










19%


30%






















See end of press release for footnote explanations

 

Table 6 – Pro Forma (2) Reconciliation of U.S. GAAP to Non-GAAP Measures




 Pro Forma EBITDA 



Three months ended



December 31,

In millions, except per share amounts, unaudited, pro forma


2015


2014






GAAP(1)


$    111


$    191

Adjustments:





Acquisition and integration expenses, purchase accounting adjustments


22


(2)

Loss from discontinued operations, net of tax(3)


3


1

Loss (gain) on disposition of businesses/assets


1


(1)

Loss on early extinguishment of debt


-


28

Certain legal settlements and related expenses


1


-

Plant incident remediation costs


1


-

Amortization of pension and postretirement actuarial losses


18


14

Restructuring, impairment, plant closing and transition costs


83


69






Pro forma adjusted(2)


$    240


$    300













 Pro Forma EBITDA 



Three months ended



September 30,

In millions, except per share amounts, unaudited pro forma


2015






GAAP(1)


$    255



Adjustments:





Acquisition and integration expenses, purchase accounting adjustments


10



Loss from discontinued operations, net of tax(3)


1



Loss on early extinguishment of debt


8



Certain legal settlements and related expenses


1



Plant incident remediation costs


3



Amortization of pension and postretirement actuarial losses


19



Restructuring, impairment, plant closing and transition costs


14








Pro forma adjusted(2)


$    311















 Pro Forma EBITDA 



Twelve months ended



December 31,

In millions, except per share amounts, unaudited pro forma


2015


2014






GAAP(1)


$    741


$ 1,214

Adjustments:





Allocation of general corporate overhead


-


20

Acquisition and integration expenses, purchase accounting adjustments


53


7

Loss from discontinued operations, net of tax(3)


6


10

Loss (gain) on disposition of businesses/assets


2


(3)

Loss on early extinguishment of debt


31


28

Certain legal settlements and related expenses


4


3

Plant incident remediation costs


4


-

Amortization of pension and postretirement actuarial losses


74


54

Restructuring, impairment, plant closing and transition costs


306


162






Pro forma adjusted(2)


$ 1,221


$ 1,495






See end of press release for footnote explanations

 

Table 7 – Reconciliation of Net Income to EBITDA




Three months ended


 Twelve months ended 



December 31,


September 30,


 December 31, 

In millions, unaudited


2015


2014


2015


2015


2014












Net income (loss) attributable to Huntsman Corporation


$    4


$ (38)


$                55


$  93


$   323

Interest expense


47


57


49


205


205

Income tax (benefit) expense from continuing operations


(39)


12


49


46


51

Income tax benefit from discontinued operations(3)


(3)


-


(1)


(2)


(2)

Depreciation and amortization


102


110


103


399


445












EBITDA(1)


111


141


255


741


1,022












Pro forma adjustments to:











Net income (loss) attributable to Huntsman Corporation


-


26


-


-


75

Interest expense


-


1


-


-


34

Income tax (benefit) expense from continuing operations


-


13


-


-


43

Depreciation and amortization


-


10


-


-


40












Pro forma EBITDA(2)


$111


$191


$              255


$741


$1,214












See end of press release for footnote explanations

 

Table 8 – Selected Balance Sheet Items




December 31,


September 30,


December 31,

In millions


2015


2015


2014





(unaudited)










Cash


$             269


$            437


$             870

Accounts and notes receivable, net


1,449


1,632


1,707

Inventories


1,692


1,850


2,025

Other current assets


424


332


437

Property, plant and equipment, net


4,446


4,380


4,423

Other assets


1,540


1,535


1,461








Total assets


$          9,820


$       10,166


$         10,923








Accounts payable


$          1,061


$         1,068


$          1,275

Other current liabilities


686


839


790

Current portion of debt


170


158


267

Long-term debt


4,625


4,639


4,854

Other liabilities


1,649


1,671


1,786

Total equity


1,629


1,791


1,951








Total liabilities and equity


$          9,820


$       10,166


$         10,923

 

Table 9 – Outstanding Debt




December 31,


September 30,


December 31,

In millions


2015


2015


2014





(unaudited)










Debt:







Senior credit facilities


$          2,454


$            2,453


$          2,468

Accounts receivable programs


215


217


229

Senior notes


1,850


1,867


1,582

Senior subordinated notes


-


-


526

Variable interest entities


151


158


207

Other debt


125


102


109








Total debt - excluding affiliates


4,795


4,797


5,121








Total cash


269


437


870








Net debt- excluding affiliates


$          4,526


$            4,360


$          4,251

 

Table 10 – Summarized Statement of Cash Flows




Three months ended



Year ended



December 31,



December 31,

In millions, unaudited


2015



2015


2014









Total cash at beginning of period(a)


$                        437



$ 870


$  529









Net cash provided by operating activities


188



575


760

Net cash used in investing activities


(217)



(600)


(1,606)

Net cash (used in) provided by financing activities


(144)



(562)


1,197

Effect of exchange rate changes on cash


(3)



(16)


(11)

Change in restricted cash


8



2


1









Total cash at end of period(a)


$                        269



$ 269


$  870









Supplemental cash flow information:








Cash paid for interest


$                         (67)



$(225)


$ (208)

Cash paid for income taxes


(45)



(126)


(165)

Cash paid for capital expenditures


(209)



(663)


(601)

Depreciation and amortization


102



399


445









Changes in primary working capital:








Accounts and notes receivable


$                        174



$ 121


$      2

Inventories


133



179


(20)

Accounts payable


(46)



(157)


86









Total cash provided by primary working capital


$                        261



$ 143


$    68

















(a) Includes restricted cash.

 

Footnotes


(1)

We use EBITDA and adjusted EBITDA to measure the operating performance of our business.  We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income.  Additional information with respect to our use of each of these financial measures follows:




EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 7 above.




Adjusted EBITDA is computed by eliminating the following from EBITDA:  (a) acquisition and integration expenses, purchase accounting adjustments; (b) loss (gain) on initial consolidation of subsidiaries; (c) EBITDA from discontinued operations; (d) loss (gain) on disposition of businesses/assets; (e) loss on early extinguishment of debt; (f) extraordinary loss (gain) on the acquisition of a business; (g) certain legal settlements and related expenses; (h) plant incident remediation costs; (i) amortization of pension and postretirement actuarial losses (gains); and (j) restructuring, impairment, plant closing and transition costs (credits).  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 5 above.




Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: (a) acquisition and integration expenses, purchase accounting adjustments; (b) impact of certain foreign tax credit elections; (c) loss (gain) on initial consolidation of subsidiaries; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) extraordinary loss (gain) on the acquisition of a business; (i) certain legal settlements and related expenses; (j) plant incident remediation costs; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment, plant closing and transition costs (credits).   We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP.  The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 5 above.



(2)

Pro forma adjusted as if it had occurred at the beginning of the relevant period to (a) include the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.; (b) to exclude the related sale of our TR52 product line – used in printing inks – to Henan Billions Chemicals Co., Ltd. in December 2014; and (c) to exclude the allocation of general corporate overhead by Rockwood.



(3)

During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations. 

 

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion.  Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:

Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors.  The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/huntsman-reports-fourth-quarter-and-full-year-2015-results-2015-adjusted-eps-improves-to-200-from-194-in-2014-300218717.html

SOURCE Huntsman Corporation

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