EX-99.1 2 a12-25665_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

Investor Relations:

Media:

November 2, 2012

Kurt Ogden

Gary Chapman

The Woodlands, TX

(801) 584-5959

(281) 719-4324

NYSE: HUN

 

 

 

HUNTSMAN REPORTS RECORD QUARTERLY ADJUSTED EBITDA

OF $401 MILLION, $0.70 ADJUSTED EPS

 

Third Quarter 2012 Highlights

 

·                  Net income attributable to Huntsman Corporation increased to $116 million compared to a loss of $34 million in the prior year period.

 

·                  Adjusted EBITDA improved 16% to $401 million compared to the prior year period.

 

·                  Adjusted diluted income per share improved 49% to $0.70 compared to the prior year period.

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,741

 

$

2,976

 

$

2,914

 

$

8,568

 

$

8,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Huntsman Corporation

 

$

116

 

$

(34

)

$

124

 

$

403

 

$

142

 

Adjusted net income(1)

 

$

168

 

$

114

 

$

139

 

$

484

 

$

340

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share

 

$

0.48

 

$

(0.14

)

$

0.52

 

$

1.68

 

$

0.59

 

Adjusted diluted income per share(1)

 

$

0.70

 

$

0.47

 

$

0.58

 

$

2.01

 

$

1.40

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

$

341

 

$

204

 

$

352

 

$

1,083

 

$

766

 

Adjusted EBITDA(1)

 

$

401

 

$

346

 

$

365

 

$

1,163

 

$

971

 

 

See end of press release for footnote explanations

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported third quarter 2012 results with revenues of $2,741 million and adjusted EBITDA of $401 million.

 

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

 

“Our third quarter 2012 Adjusted EBITDA of $401 million represents a new record in quarterly earnings. Compared to the prior year and quarter, improved earnings in our polyurethanes businesses more than offset the decline in our pigments business. In addition to the increased earnings in our polyurethanes business, all of our non-pigments businesses saw an increase in earnings from the previous year.

 

During the quarter, we generated more than $200 million in cash from operations and prepaid $75 million of debt.  Earlier this week, we prepaid an additional $50 million of debt.

 

In addition to aggressive sales efforts, we continue to benefit from our ongoing restructuring and cost cutting that was started last year and will continue to deliver a better cost structure into 2013.”

 


 

Segment Analysis for 3Q12 Compared to 3Q11

 

Polyurethanes

 

The increase in revenues in our Polyurethanes division for the three months ended September 30, 2012 compared to the same period in 2011 was due to higher average selling prices and improved sales mix partially offset by lower sales volumes and the strength of the U.S. dollar against major European currencies.  PO/MTBE average selling prices increased primarily due to favorable market conditions.  MDI average selling prices increased in all regions but were offset by the strength of the U.S. dollar against major European currencies.  PO/MTBE sales volumes decreased partially offset by an increase in MDI sales volumes primarily as a result of improved demand in the European and Asian regions and in certain large markets such as composite wood products and adhesives, coatings and elastomers.  The increase in adjusted EBITDA was primarily due to higher contribution margins and improved sales mix.

 

Performance Products

 

The decrease in revenues in our Performance Products division for the three months ended September 30, 2012 compared to the same period in 2011 was due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily in response to lower raw material costs and the strength of the U.S. dollar against major international currencies.  Sales volumes decreased primarily due to a shift to tolling arrangements.  The increase in adjusted EBITDA was primarily due to higher contribution margins as raw material costs decreased.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended September 30, 2012 compared to the same period in 2011 was primarily due to lower average selling prices partially offset by higher sales volumes.  Average selling prices decreased primarily in response to lower raw material costs, competitive market pressure and the strength of the U.S. dollar against major international currencies.  Sales volumes increased primarily due to stronger demand in Europe, the Americas and India while sales volumes in the Asia Pacific region decreased due to lower demand in the wind energy and electrical engineering markets.  The increase in adjusted EBITDA was primarily due to higher sales volumes and lower selling, general and administrative costs as a result of recent restructuring efforts.

 

Textile Effects

 

The increase in revenues in our Textile Effects division for the three months ended September 30, 2012 compared to the same period in 2011 was primarily due to higher sales volumes, partially offset by lower average selling prices.  Sales volumes increased due to increased market share in key markets, notably Asia.  Average selling prices decreased primarily due to the strength of the U.S. dollar against major international currencies.  The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing and selling, general and administrative costs as a result of recent restructuring efforts.

 

Pigments

 

The decrease in revenues in our Pigments division for the three months ended September 30, 2012 compared to the same period in 2011 was due to lower sales volumes.  Sales volumes decreased primarily due to lower global demand.  The increase in local currency average selling prices was offset by the strength of the U.S. dollar against major international currencies.  The decrease in adjusted EBITDA was primarily due to lower sales volumes and higher raw material costs.

 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and other increased by $12 million to a loss of $37 million for the three months ended September 30, 2012 compared to a loss of $49 million for the same period in 2011.  The

 

2


 

increase in adjusted EBITDA was primarily the result of a $10 million decrease in LIFO inventory valuation expense ($2 million of income in 2012 compared to $8 million of expense in 2011).

 

Liquidity, Capital Resources and Outstanding Debt

 

As of September 30, 2012, we had $1,038 million of combined cash and unused borrowing capacity compared to $1,043 million at December 31, 2011.  For the three months ended September 30, 2012, our primary net working capital increased by $10 million and we generated $208 million in cash from operations.

 

During the third quarter 2012 we prepaid $75 million of our senior secured term loans.  During October, 2012 we prepaid an additional $50 million of our senior secured term loan.

 

Total capital expenditures for the three months ended September 30, 2012 were $85 million.  We expect to spend approximately $425 - $450 million on capital expenditures in 2012 which approximates our annual depreciation and amortization.

 

Income Taxes

 

During the three months ended September 30, 2012 we recorded income tax expense of $61 million.  Our adjusted effective income tax rate for the three months ended September 30, 2012 was approximately 31%.  We expect our long term effective income tax rate to be approximately 30 - 35%.  During the three months ended September 30, 2012, we paid $83 million in cash for income taxes.

 

3


 

Conference Call Information

 

We will hold a conference call to discuss our third quarter 2012 financial results on Friday, November 2, 2012 at 10:00 a.m. ET.

 

Call-in numbers for the conference call:

 

U.S. participants

(888) 713 - 4217

International participants

(617) 213 - 4869

Passcode

67952871

 

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=P9F6FYPGT

 

Webcast Information

 

The conference call will be available via webcast and can be accessed from the investor relations portion of the company’s website at huntsman.com.

 

Replay Information

 

The conference call will be available for replay beginning November 2, 2012 and ending November 9, 2012.

 

Call-in numbers for the replay:

 

U.S. participants

(888) 286 - 8010

International participants

(617) 801 - 6888

Replay code

91700765

 

4


 

Table 1 – Results of Operations

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,741

 

$

2,976

 

$

8,568

 

$

8,589

 

Cost of goods sold

 

2,204

 

2,486

 

6,954

 

7,138

 

Gross profit

 

537

 

490

 

1,614

 

1,451

 

Operating expenses

 

255

 

258

 

792

 

821

 

Restructuring, impairment and plant closing costs

 

47

 

155

 

52

 

171

 

Operating income

 

235

 

77

 

770

 

459

 

Interest expense, net

 

(56

)

(63

)

(172

)

(187

)

Equity in income of investment in unconsolidated affiliates

 

2

 

2

 

5

 

6

 

Loss on early extinguishment of debt

 

(1

)

(2

)

(2

)

(5

)

Other income (loss)

 

1

 

(1

)

2

 

—

 

Income before income taxes

 

181

 

13

 

603

 

273

 

Income tax expense

 

(61

)

(55

)

(186

)

(111

)

Income (loss) from continuing operations

 

120

 

(42

)

417

 

162

 

(Loss) income from discontinued operations, net of tax(2)

 

(1

)

10

 

(7

)

(5

)

Extraordinary gain on the acquisition of a business, net of tax of nil

 

1

 

—

 

1

 

2

 

Net income (loss)

 

120

 

(32

)

411

 

159

 

Net income attributable to noncontrolling interests, net of tax

 

(4

)

(2

)

(8

)

(17

)

Net income (loss) attributable to Huntsman Corporation

 

$

116

 

$

(34

)

$

403

 

$

142

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

401

 

$

346

 

$

1,163

 

$

971

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income(1)

 

$

168

 

$

114

 

$

484

 

$

340

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

0.49

 

$

(0.14

)

$

1.70

 

$

0.60

 

Diluted income (loss) per share

 

$

0.48

 

$

(0.14

)

$

1.68

 

$

0.59

 

Adjusted diluted income per share(1)

 

$

0.70

 

$

0.47

 

$

2.01

 

$

1.40

 

 

 

 

 

 

 

 

 

 

 

Common share information:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

237.9

 

237.6

 

237.4

 

238.2

 

Diluted shares

 

240.8

 

237.6

 

240.3

 

242.6

 

Diluted shares for adjusted diluted income per share

 

240.8

 

241.3

 

240.3

 

242.6

 

 

See end of press release for footnote explanations

 

5


 

Table 2 – Results of Operations by Segment

 

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

 

 

September 30,

 

Better /

 

September 30,

 

Better /

 

In millions, unaudited

 

2012

 

2011

 

(Worse)

 

2012

 

2011

 

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

1,244

 

$

1,209

 

3

%

$

3,735

 

$

3,391

 

10

%

Performance Products

 

742

 

846

 

(12

)%

2,319

 

2,546

 

(9

)%

Advanced Materials

 

328

 

349

 

(6

)%

1,014

 

1,059

 

(4

)%

Textile Effects

 

182

 

173

 

5

%

562

 

563

 

—

 

Pigments

 

319

 

455

 

(30

)%

1,150

 

1,243

 

(7

)%

Eliminations and other

 

(74

)

(56

)

(32

)%

(212

)

(213

)

—

 

Total

 

$

2,741

 

$

2,976

 

(8

)%

$

8,568

 

$

8,589

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

239

 

$

140

 

71

%

$

586

 

$

397

 

48

%

Performance Products

 

107

 

97

 

10

%

282

 

314

 

(10

)%

Advanced Materials

 

30

 

26

 

15

%

86

 

96

 

(10

)%

Textile Effects

 

(10

)

(29

)

66

%

(23

)

(42

)

45

%

Pigments

 

72

 

161

 

(55

)%

352

 

363

 

(3

)%

Corporate, LIFO and other

 

(37

)

(49

)

24

%

(120

)

(157

)

24

%

Total

 

$

401

 

$

346

 

16

%

$

1,163

 

$

971

 

20

%

 

See end of press release for footnote explanations

 

Table 3 – Factors Impacting Sales Revenues

 

 

 

Three months ended

 

 

 

September 30, 2012 vs. 2011

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(a)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

5

%

(5

)%

4

%

(1

)%

3

%

Performance Products

 

(7

)%

(4

)%

1

%

(2

)%

(12

)%

Advanced Materials

 

(11

)%

(7

)%

1

%

11

%

(6

)%

Textile Effects

 

(2

)%

(7

)%

(1

)%

15

%

5

%

Pigments

 

7

%

(7

)%

—

 

(30

)%

(30

)%

Total Company

 

(1

)%

(5

)%

—

 

(2

)%

(8

)%

 

 

 

Nine months ended

 

 

 

September 30, 2012 vs. 2011

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(a)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

4

%

(3

)%

2

%

7

%

10

%

Performance Products

 

(5

)%

(2

)%

—

 

(2

)%

(9

)%

Advanced Materials

 

(5

)%

(5

)%

(2

)%

8

%

(4

)%

Textile Effects

 

(1

)%

(4

)%

(1

)%

6

%

—

 

Pigments

 

22

%

(6

)%

—

 

(23

)%

(7

)%

Total Company

 

3

%

(4

)%

1

%

—

 

—

 

 

(a) Excludes revenues and sales volumes primarily from tolling arrangements and the sale of by-products and raw materials.

 

6


 

Table 4 — Reconciliation of U.S. GAAP to Non-GAAP Measures

 

 

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

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

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

341

 

$

204

 

$

(61

)

$

(55

)

$

116

 

$

(34

)

$

0.48

 

$

(0.14

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal settlements and related expenses

 

4

 

4

 

(2

)

(1

)

2

 

3

 

0.01

 

0.01

 

Loss on early extinguishment of debt

 

1

 

2

 

(1

)

(1

)

—

 

1

 

—

 

—

 

Loss on initial consolidation of subsidiaries

 

4

 

—

 

—

 

—

 

4

 

—

 

0.02

 

—

 

Restructuring, impairment, plant closing and transition costs

 

51

 

155

 

(11

)

(3

)

40

 

152

 

0.17

 

0.63

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

(3

)

(3

)

5

 

4

 

0.02

 

0.02

 

Acquisition expenses

 

1

 

1

 

—

 

—

 

1

 

1

 

—

 

—

 

Gain on disposition of businesses/assets

 

—

 

(3

)

—

 

—

 

—

 

(3

)

—

 

(0.01

)

(Income) loss from discontinued operations, net of tax(2)

 

—

 

(17

)

N/A

 

N/A

 

1

 

(10

)

—

 

(0.04

)

Extraordinary gain on the acquisition of a business, net of tax

 

(1

)

—

 

N/A

 

N/A

 

(1

)

—

 

—

 

—

 

Adjusted(1)

 

$

401

 

$

346

 

$

(78

)

$

(63

)

$

168

 

$

114

 

$

0.70

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

78

 

63

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

4

 

2

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

250

 

$

179

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

31

%

35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Three months ended

 

Three months ended

 

Three months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2012

 

2012

 

2012

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

352

 

$

(65

)

$

124

 

$

0.52

 

Adjustments:

 

 

 

 

 

 

 

 

 

Restructuring, impairment, plant closing and transition costs

 

9

 

(2

)

7

 

0.03

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

(3

)

5

 

0.02

 

Acquisition expenses

 

1

 

—

 

1

 

—

 

Loss from discontinued operations, net of tax(2)

 

3

 

N/A

 

2

 

0.01

 

Adjusted(1)

 

$

365

 

$

(70

)

$

139

 

$

0.58

 

Adjusted income tax expense

 

 

 

 

 

70

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

$

213

 

 

 

Adjusted effective tax rate

 

 

 

 

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Nine months ended

 

Nine months ended

 

Nine months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

1,083

 

$

766

 

$

(186

)

$

(111

)

$

403

 

$

142

 

$

1.68

 

$

0.59

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal settlements and related expenses

 

5

 

38

 

(2

)

(14

)

3

 

24

 

0.01

 

0.10

 

Loss on early extinguishment of debt

 

2

 

5

 

(1

)

(2

)

1

 

3

 

—

 

0.01

 

Loss (gain) on initial consolidation of subsidiaries

 

4

 

(12

)

—

 

2

 

4

 

(10

)

0.02

 

(0.04

)

Restructuring, impairment, plant closing and transition costs

 

64

 

171

 

(14

)

(4

)

50

 

167

 

0.21

 

0.69

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

(8

)

(8

)

15

 

13

 

0.06

 

0.05

 

Acquisition expenses

 

2

 

5

 

—

 

(1

)

2

 

4

 

0.01

 

0.02

 

Gain on disposition of businesses/assets

 

—

 

(6

)

—

 

—

 

—

 

(6

)

—

 

(0.02

)

Loss from discontinued operations, net of tax(2)

 

4

 

6

 

N/A

 

N/A

 

7

 

5

 

0.03

 

0.02

 

Extraordinary gain on the acquisition of a business, net of tax

 

(1

)

(2

)

N/A

 

N/A

 

(1

)

(2

)

—

 

(0.01

)

Adjusted(1)

 

$

1,163

 

$

971

 

$

(211

)

$

(138

)

$

484

 

$

340

 

$

2.01

 

$

1.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

211

 

138

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

8

 

17

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

703

 

$

495

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

30

%

28

%

 

 

 

 

 

See end of press release for footnote explanations

 

7


 

Table 5 — Reconciliation of Net Income (Loss) to EBITDA

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

In millions, unaudited

 

2012

 

2011

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Huntsman Corporation

 

$

116

 

$

(34

)

$

124

 

$

403

 

$

142

 

Interest expense, net

 

56

 

63

 

57

 

172

 

187

 

Income tax expense from continuing operations

 

61

 

55

 

65

 

186

 

111

 

Income tax expense (benefit) from discontinued operations(2)

 

—

 

7

 

(1

)

(2

)

(1

)

Depreciation and amortization of continuing operations

 

107

 

113

 

107

 

319

 

327

 

Depreciation and amortization of discontinued operations(2)

 

1

 

—

 

—

 

5

 

—

 

EBITDA(1)

 

$

341

 

$

204

 

$

352

 

$

1,083

 

$

766

 

 

See end of press release for footnote explanations

 

Table 6 — Selected Balance Sheet Items

 

 

 

September 30,

 

June 30,

 

December 31,

 

In millions

 

2012

 

2012

 

2011

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

444

 

$

461

 

$

562

 

Accounts and notes receivable, net

 

1,626

 

1,677

 

1,529

 

Inventories

 

1,807

 

1,645

 

1,539

 

Other current assets

 

365

 

326

 

316

 

Property, plant and equipment, net

 

3,626

 

3,536

 

3,622

 

Other assets

 

1,078

 

1,084

 

1,089

 

Total assets

 

$

8,946

 

$

8,729

 

$

8,657

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,017

 

$

976

 

$

862

 

Other current liabilities

 

758

 

729

 

752

 

Current portion of debt

 

130

 

143

 

212

 

Long-term debt

 

3,550

 

3,601

 

3,730

 

Other liabilities

 

1,275

 

1,274

 

1,325

 

Total equity

 

2,216

 

2,006

 

1,776

 

Total liabilities and equity

 

$

8,946

 

$

8,729

 

$

8,657

 

 

8


 

Table 7 — Outstanding Debt

 

 

 

September 30,

 

June 30,

 

December 31,

 

In millions

 

2012

 

2012

 

2011

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

 

Senior credit facilities

 

$

1,613

(a)

$

1,686

 

$

1,696

 

Accounts receivable programs

 

237

 

232

 

237

 

Senior notes

 

490

(b)

483

 

472

 

Senior subordinated notes

 

892

 

893

 

976

 

Variable interest entities

 

266

 

271

 

281

 

Other debt

 

182

 

179

 

280

 

Total debt - excluding affiliates

 

3,680

 

3,744

 

3,942

 

 

 

 

 

 

 

 

 

Total cash

 

444

 

461

 

562

 

 

 

 

 

 

 

 

 

Net debt- excluding affiliates

 

$

3,236

 

$

3,283

 

$

3,380

 

 

(a) net of $28 million unamortized discount as of September 30, 2012

(b) net of $110 million unamortized discount as of September 30, 2012

 

Table 8 — Summarized Statement of Cash Flows

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

In millions, unaudited

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Total cash at beginning of period

 

$

461

 

$

562

 

$

973

 

Net cash provided by operating activities

 

208

 

556

 

25

 

Net cash used in investing activities

 

(114

)

(299

)

(200

)

Net cash used in financing activities

 

(114

)

(378

)

(335

)

Effect of exchange rate changes on cash

 

3

 

2

 

(3

)

Change in restricted cash

 

—

 

1

 

(1

)

Total cash at end of period

 

$

444

 

$

444

 

$

459

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

 

$

(71

)

$

(177

)

$

(178

)

Cash paid for income taxes

 

$

(83

)

$

(153

)

$

(84

)

Cash paid for capital expenditures

 

$

(85

)

$

(248

)

$

(217

)

Depreciation & amortization

 

$

108

 

$

324

 

$

327

 

 

 

 

 

 

 

 

 

Changes in primary working capital:

 

 

 

 

 

 

 

Accounts and notes receivable

 

$

81

 

$

(102

)

$

(314

)

Inventories

 

(113

)

(252

)

(273

)

Accounts payable

 

22

 

122

 

81

 

Total use of cash

 

$

(10

)

$

(232

)

$

(506

)

 

9


 

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 5 above.

 

Adjusted EBITDA is computed by eliminating the following from EBITDA:  EBITDA from discontinued operations; restructuring, impairment, plant closing and transition costs (credits); acquisition expenses; certain legal settlements and related expenses; loss on early extinguishment of debt; loss (gain) on initial consolidation of subsidiaries; extraordinary loss (gain) on the acquisition of a business; and loss (gain) on disposition of businesses/assets.  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 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: loss (income) from discontinued operations; restructuring, impairment, plant closing and transition costs (credits); discount amortization on settlement financing associated with the terminated merger; acquisition expenses; certain legal settlements and related expenses; loss on early extinguishment of debt; loss (gain) on initial consolidation of subsidiaries; extraordinary loss (gain) on the acquisition of a business; and loss (gain) on disposition of businesses/assets.   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 4 above.

 

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

 

About Huntsman:

 

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 12,000 employees and operates from multiple locations worldwide. The Company had 2011 revenues of over $11 billion. For more information about Huntsman, please visit the company’s website at www.huntsman.com.

 

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.

 

10