x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2015 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to . |
Delaware | 20-1380758 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
259 Prospect Plains Road Cranbury, New Jersey | 08512 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large Accelerated Filer | x | Accelerated Filer | o | |
Non-accelerated filer | o | Smaller reporting company | o |
Page | ||
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Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 79,994 | $ | 36,207 | |||
Accounts receivable, net | 101,427 | 90,551 | |||||
Inventories | 175,044 | 184,621 | |||||
Other current assets | 46,348 | 60,135 | |||||
Total current assets | 402,813 | 371,514 | |||||
Property, plant and equipment, net | 197,037 | 198,988 | |||||
Goodwill | 84,373 | 84,373 | |||||
Intangibles and other assets, net | 68,387 | 73,536 | |||||
Total assets | $ | 752,610 | $ | 728,411 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 4,003 | $ | 4,003 | |||
Accounts payable, trade and other | 48,922 | 53,137 | |||||
Other current liabilities | 34,112 | 34,806 | |||||
Total current liabilities | 87,037 | 91,946 | |||||
Long-term debt | 240,000 | 132,002 | |||||
Other long-term liabilities | 40,858 | 41,456 | |||||
Total liabilities | $ | 367,895 | $ | 265,404 | |||
Commitments and contingencies (note 12) | |||||||
Common stock, par value $.001 per share; authorized 100,000,000; issued 22,530,969 and 22,447,058; outstanding 20,001,272 and 21,480,334 shares | 20 | 21 | |||||
Paid-in capital | 77,813 | 124,558 | |||||
Common stock held in treasury, at cost (2,529,697 and 966,724 shares) | (86,248 | ) | (49,284 | ) | |||
Retained earnings | 396,032 | 390,525 | |||||
Accumulated other comprehensive loss | (2,902 | ) | (2,813 | ) | |||
Total stockholders' equity | 384,715 | 463,007 | |||||
Total liabilities and stockholders' equity | $ | 752,610 | $ | 728,411 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||
Net sales | $ | 217,294 | $ | 219,542 | $ | 418,903 | $ | 435,883 | |||||||
Cost of goods sold | 176,299 | 166,969 | 337,382 | 341,378 | |||||||||||
Gross profit | 40,995 | 52,573 | 81,521 | 94,505 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 18,667 | 19,683 | 36,658 | 38,656 | |||||||||||
Research & development expenses | 1,063 | 1,081 | 2,237 | 2,096 | |||||||||||
Total operating expenses | 19,730 | 20,764 | 38,895 | 40,752 | |||||||||||
Operating income | 21,265 | 31,809 | 42,626 | 53,753 | |||||||||||
Interest expense, net | 1,403 | 1,128 | 2,554 | 1,833 | |||||||||||
Foreign exchange loss (gain) | 117 | (1,042 | ) | 2,432 | (41 | ) | |||||||||
Income before income taxes | 19,745 | 31,723 | 37,640 | 51,961 | |||||||||||
Provision for income taxes | 6,142 | 11,095 | 12,094 | 17,148 | |||||||||||
Net income | $ | 13,603 | $ | 20,628 | $ | 25,546 | $ | 34,813 | |||||||
Net income attributable to participating common shareholders | $ | 13,571 | $ | 20,585 | $ | 25,500 | $ | 34,740 | |||||||
Per share data (note 2): | |||||||||||||||
Income per participating share: | |||||||||||||||
Basic | $ | 0.66 | $ | 0.94 | $ | 1.23 | $ | 1.59 | |||||||
Diluted | $ | 0.65 | $ | 0.93 | $ | 1.21 | $ | 1.56 | |||||||
Weighted average participating shares outstanding: | |||||||||||||||
Basic | 20,435,846 | 21,876,265 | 20,807,777 | 21,870,343 | |||||||||||
Diluted | 20,722,940 | 22,251,416 | 21,109,803 | 22,243,764 | |||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Change in interest rate swaps, (net of tax ($22), ($236), $245, and ($268)) | $ | 36 | $ | (384 | ) | $ | (401 | ) | $ | (436 | ) | ||||
Change in pension and post-retirement plans, (net of tax ($7), ($19), ($108), and $20) | 14 | (50 | ) | 312 | 72 | ||||||||||
Other comprehensive (loss) income, net of tax | $ | 50 | $ | (434 | ) | $ | (89 | ) | $ | (364 | ) | ||||
Comprehensive income | $ | 13,653 | $ | 20,194 | $ | 25,457 | $ | 34,449 |
Six months ended | |||||||
June 30, 2015 | June 30, 2014 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 25,546 | $ | 34,813 | |||
Adjustments to reconcile net income to net cash provided from operating activities: | |||||||
Depreciation and amortization | 20,633 | 17,399 | |||||
Amortization of deferred financing charges | 285 | 263 | |||||
Deferred income tax provision (benefit) | 135 | (71 | ) | ||||
Share-based compensation | 1,585 | 1,975 | |||||
Changes in assets and liabilities: | |||||||
Increase in accounts receivable | (10,876 | ) | (19,307 | ) | |||
Decrease in inventories | 9,573 | 17,200 | |||||
Decrease in other current assets | 13,969 | 12,154 | |||||
Decrease in accounts payable | (4,144 | ) | (920 | ) | |||
(Decrease) increase in other current liabilities | (1,589 | ) | 2,543 | ||||
Changes in other long-term assets and liabilities | 135 | 1,978 | |||||
Net cash provided from operating activities | 55,252 | 68,027 | |||||
Cash flows used for investing activities: | |||||||
Capital expenditures | (14,146 | ) | (14,722 | ) | |||
Net cash used for investing activities | (14,146 | ) | (14,722 | ) | |||
Cash flows used for financing activities: | |||||||
Proceeds from exercise of options | 190 | 159 | |||||
Long-term debt borrowings | 110,000 | — | |||||
Long-term debt repayments | (2,002 | ) | (24,001 | ) | |||
Excess tax benefits from exercise of stock options | 764 | 154 | |||||
Common stock repurchases and restricted stock forfeitures | (86,248 | ) | (6,381 | ) | |||
Dividends paid | (20,061 | ) | (17,546 | ) | |||
Net cash provided from (used for) financing activities | 2,643 | (47,615 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | 38 | 23 | |||||
Net change in cash | 43,787 | 5,713 | |||||
Cash and cash equivalents at beginning of period | 36,207 | 32,755 | |||||
Cash and cash equivalents at end of period | $ | 79,994 | $ | 38,468 |
Number of Common Shares | Common Stock | Retained Earnings | Paid-in Capital | Accumulated Other Comprehensive Income/(Loss) | Total Shareholders' Equity | |||||||||||||||||
Balance, December 31, 2013 | 21,893 | $ | 22 | $ | 364,515 | $ | 100,447 | $ | (1,565 | ) | $ | 463,419 | ||||||||||
Net income | 64,461 | 64,461 | ||||||||||||||||||||
Other comprehensive income, (net of tax $598) | (1,248 | ) | (1,248 | ) | ||||||||||||||||||
Proceeds from stock award exercises and issuances | 119 | 160 | 160 | |||||||||||||||||||
Share-based compensation | 3,280 | 3,280 | ||||||||||||||||||||
Excess tax benefits from exercise of stock options | 1,071 | 1,071 | ||||||||||||||||||||
Common stock repurchases | (528 | ) | (1 | ) | (29,482 | ) | (29,483 | ) | ||||||||||||||
Restricted stock forfeitures | (4 | ) | (202 | ) | (202 | ) | ||||||||||||||||
Dividends declared | (38,451 | ) | (38,451 | ) | ||||||||||||||||||
Balance, December 31, 2014 | 21,480 | $ | 21 | $ | 390,525 | $ | 75,274 | $ | (2,813 | ) | $ | 463,007 | ||||||||||
Net income | 25,546 | 25,546 | ||||||||||||||||||||
Other comprehensive loss, (net of tax $137) | (89 | ) | (89 | ) | ||||||||||||||||||
Proceeds from stock award exercises and issuances | 84 | 190 | 190 | |||||||||||||||||||
Share-based compensation | 1,585 | 1,585 | ||||||||||||||||||||
Common stock repurchases | (1,556 | ) | (1 | ) | (85,847 | ) | (85,848 | ) | ||||||||||||||
Excess tax benefits from exercise of stock options | 764 | 764 | ||||||||||||||||||||
Restricted stock forfeitures | (7 | ) | (401 | ) | (401 | ) | ||||||||||||||||
Dividends declared | (20,039 | ) | (20,039 | ) | ||||||||||||||||||
Balance, June 30, 2015 | 20,001 | $ | 20 | $ | 396,032 | $ | (8,435 | ) | $ | (2,902 | ) | $ | 384,715 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||
Net income | $ | 13,603 | $ | 20,628 | $ | 25,546 | $ | 34,813 | |||||||
Less: earnings attributable to unvested shares | (32 | ) | (43 | ) | (46 | ) | (73 | ) | |||||||
Net income available to participating common shareholders | $ | 13,571 | $ | 20,585 | $ | 25,500 | $ | 34,740 | |||||||
Weighted average number of participating common and potential common shares outstanding: | |||||||||||||||
Basic number of participating common shares outstanding | 20,435,846 | 21,876,265 | 20,807,777 | 21,870,343 | |||||||||||
Dilutive effect of stock equivalents | 287,094 | 375,151 | 302,026 | 373,421 | |||||||||||
Diluted number of weighted average participating common shares outstanding | 20,722,940 | 22,251,416 | 21,109,803 | 22,243,764 | |||||||||||
Earnings per participating common share: | |||||||||||||||
Earnings per participating common share—Basic | $ | 0.66 | $ | 0.94 | $ | 1.23 | $ | 1.59 | |||||||
Earnings per participating common share—Diluted | $ | 0.65 | $ | 0.93 | $ | 1.21 | $ | 1.56 | |||||||
Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive | 391,069 | 383,971 | 376,137 | 385,701 |
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | June 30 | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Dividends declared – per share | $ | 0.48 | $ | 0.40 | $ | 0.96 | $ | 0.80 | ||||||
Dividends declared – aggregate | 9,863 | 8,780 | 20,061 | 17,546 | ||||||||||
Dividends paid – per share | 0.48 | 0.40 | 0.96 | 0.80 | ||||||||||
Dividends paid – aggregate | 9,863 | 8,780 | 20,061 | 17,546 |
Non-qualified stock options | |||
Expected volatility | 46.3 | % | |
Dividend yield | 3.3 | % | |
Risk-free interest rate | 1.7 | % | |
Expected term (years) | 6.3 | ||
Weighted average grant date fair value of stock options | $ | 16.46 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||
Stock options | $ | 454 | $ | 245 | $ | 702 | $ | 815 | |||||||
Restricted stock | 392 | 261 | 638 | 557 | |||||||||||
Performance shares | 46 | 41 | (265 | ) | 333 | ||||||||||
Stock grants | 510 | 270 | 510 | 270 | |||||||||||
Total share-based compensation expense | $ | 1,402 | $ | 817 | $ | 1,585 | $ | 1,975 |
June 30, 2015 | December 31, 2014 | ||||||
Raw materials | $ | 52,480 | $ | 60,697 | |||
Finished products | 109,270 | 111,600 | |||||
Spare parts | 13,294 | 12,324 | |||||
$ | 175,044 | $ | 184,621 |
June 30, 2015 | December 31, 2014 | ||||||
Creditable taxes (value added taxes) | 14,323 | $ | 18,124 | ||||
Vendor inventory deposits (prepaid) | 9,607 | 9,483 | |||||
Prepaid income taxes | 6,581 | 12,658 | |||||
Deferred income taxes | 12,142 | 12,647 | |||||
Prepaid insurance | 739 | 2,109 | |||||
Other | 2,956 | 5,114 | |||||
$ | 46,348 | $ | 60,135 |
Useful life (years) | June 30, 2015 | December 31, 2014 | |||||||
Developed technology and application patents, net of accumulated amortization of $23,371 for 2015 and $21,894 for 2014 | 7-20 | $ | 22,904 | $ | 24,381 | ||||
Customer relationships, net of accumulated amortization of $14,433 for 2015 and $13,054 for 2014 | 5-15 | 24,379 | 25,758 | ||||||
Trade names and license agreements, net of accumulated amortization of $8,258 for 2015 and $7,573 for 2014 | 5-20 | 9,403 | 10,088 | ||||||
Non-compete agreements, net of accumulated amortization of $1,033 for 2015 and $954 for 2014 | 3-10 | 300 | 379 | ||||||
Total intangibles | $ | 56,986 | $ | 60,606 | |||||
Deferred financing costs, net of accumulated amortization of $2,463 for 2015 and $2,178 for 2014 (see note 9) | $ | 1,388 | $ | 1,673 | |||||
Other tax assets | 6,724 | 7,013 | |||||||
Other assets | 3,289 | 4,244 | |||||||
Total other assets | $ | 11,401 | $ | 12,930 | |||||
$ | 68,387 | $ | 73,536 |
June 30, 2015 | December 31, 2014 | ||||||
Payroll related | $ | 9,718 | $ | 12,703 | |||
Taxes other than income taxes | 5,238 | 5,057 | |||||
Benefits and pensions | 4,550 | 6,640 | |||||
Freight and rebates | 3,959 | 4,346 | |||||
Income taxes | 2,497 | 1,302 | |||||
Equity repurchases | 2,700 | — | |||||
Other | 5,450 | 4,758 | |||||
$ | 34,112 | $ | 34,806 |
June 30, 2015 | December 31, 2014 | ||||||
Term loan due 2017 | $ | 90,000 | $ | 92,000 | |||
Revolver borrowings under the credit facility | 154,000 | 44,000 | |||||
Capital leases | 3 | 5 | |||||
Total borrowings | $ | 244,003 | $ | 136,005 | |||
Less current portion | 4,003 | 4,003 | |||||
Long-term debt | $ | 240,000 | $ | 132,002 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||
Interest expense | $ | 1,306 | $ | 1,022 | $ | 2,332 | 1,607 | ||||||||
Deferred financing cost | 142 | 131 | 285 | 263 | |||||||||||
Interest income | (30 | ) | (9 | ) | (37 | ) | (14 | ) | |||||||
Less: amount capitalized for capital projects | (15 | ) | (16 | ) | (26 | ) | (23 | ) | |||||||
Total interest expense, net | $ | 1,403 | $ | 1,128 | $ | 2,554 | $ | 1,833 |
June 30, 2015 | December 31, 2014 | ||||||
Deferred income taxes | $ | 23,568 | $ | 24,400 | |||
Pension and post retirement liabilities | 10,526 | 10,714 | |||||
Uncertain tax positions | 2,744 | 2,798 | |||||
Environmental liabilities | 1,100 | 1,100 | |||||
Other liabilities | 2,920 | 2,444 | |||||
$ | 40,858 | $ | 41,456 |
For the three months ended June 30, 2015 | For the three months ended June 30, 2014 | ||||||||||||||||||||||
Pension benefits | Other benefits | Total | Pension benefits | Other benefits | Total | ||||||||||||||||||
Service cost | $ | — | $ | 79 | $ | 79 | $ | — | $ | 78 | $ | 78 | |||||||||||
Interest cost | 28 | 42 | 70 | 31 | 43 | 74 | |||||||||||||||||
Expected return on assets | (34 | ) | — | (34 | ) | (31 | ) | — | (31 | ) | |||||||||||||
Amortization of | |||||||||||||||||||||||
prior service cost | — | — | — | — | — | — | |||||||||||||||||
unrecognized (gain) loss | 16 | (5 | ) | 11 | — | (10 | ) | (10 | ) | ||||||||||||||
Net periodic cost | $ | 10 | $ | 116 | $ | 126 | $ | — | $ | 111 | $ | 111 |
For the six months ended June 30, 2015 | For the six months ended June 30, 2014 | ||||||||||||||||||||||
Pension benefits | Other benefits | Total | Pension benefits | Other benefits | Total | ||||||||||||||||||
Service cost | — | $ | 159 | $ | 159 | $ | — | $ | 156 | $ | 156 | ||||||||||||
Interest cost | 57 | 84 | 141 | 61 | 87 | 148 | |||||||||||||||||
Expected return on assets | (69 | ) | — | (69 | ) | (61 | ) | — | (61 | ) | |||||||||||||
Amortization of | |||||||||||||||||||||||
prior service cost | — | — | — | — | — | — | |||||||||||||||||
unrecognized (gain) loss | 32 | (11 | ) | 21 | — | (20 | ) | (20 | ) | ||||||||||||||
Net periodic cost | $ | 20 | $ | 232 | $ | 252 | $ | — | $ | 223 | $ | 223 |
For the three months ended June 30, 2015 | For the three months ended June 30, 2014 | ||||||||||||||||||||||
Pension benefits | Other benefits | Total | Pension benefits | Other benefits | Total | ||||||||||||||||||
Service cost | $ | 89 | $ | 12 | $ | 101 | $ | 80 | $ | 17 | $ | 97 | |||||||||||
Interest cost | 131 | 14 | 145 | 145 | 21 | 166 | |||||||||||||||||
Expected return on assets | (200 | ) | — | (200 | ) | (234 | ) | — | (234 | ) | |||||||||||||
Amortization of | |||||||||||||||||||||||
actuarial loss (gain) | 41 | — | 41 | 25 | 4 | 29 | |||||||||||||||||
prior service cost | 29 | — | 29 | 23 | — | 23 | |||||||||||||||||
net transition obligation | — | 6 | 6 | — | 7 | 7 | |||||||||||||||||
Exchange rate changes | (128 | ) | 29 | (99 | ) | (244 | ) | 53 | (191 | ) | |||||||||||||
Net periodic cost | $ | (38 | ) | $ | 61 | $ | 23 | $ | (205 | ) | $ | 102 | $ | (103 | ) |
For the six months ended June 30, 2015 | For the six months ended June 30, 2014 | ||||||||||||||||||||||
Pension benefits | Other benefits | Total | Pension benefits | Other benefits | Total | ||||||||||||||||||
Service cost | $ | 178 | $ | 24 | $ | 202 | $ | 159 | $ | 34 | $ | 193 | |||||||||||
Interest cost | 262 | 28 | 290 | 287 | 43 | 330 | |||||||||||||||||
Expected return on assets | (400 | ) | — | (400 | ) | (466 | ) | — | (466 | ) | |||||||||||||
Amortization of | |||||||||||||||||||||||
actuarial loss (gain) | 82 | — | 82 | 50 | 7 | 57 | |||||||||||||||||
prior service cost | 57 | — | 57 | 47 | — | 47 | |||||||||||||||||
net transition obligation | — | 12 | 12 | — | 14 | 14 | |||||||||||||||||
Exchange rate changes | 351 | (78 | ) | 273 | (25 | ) | 6 | (19 | ) | ||||||||||||||
Net periodic cost | $ | 530 | $ | (14 | ) | $ | 516 | $ | 52 | $ | 104 | $ | 156 |
For the three months ended June 30, 2015 | Pension and Other Postretirement Adjustments | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||
Balance at March 31, 2015 | $ | (2,877 | ) | $ | (75 | ) | $ | (2,952 | ) | ||
Other comprehensive income (loss) before reclassifications | 14 | 36 | 50 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Net current period other comprehensive income (loss) | 14 | 36 | 50 | ||||||||
Balance at June 30, 2015 | $ | (2,863 | ) | $ | (39 | ) | $ | (2,902 | ) | ||
For the three months ended June 30, 2014 | Pension and Other Postretirement Adjustments | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||
Balance at March 31, 2014 | $ | (2,165 | ) | $ | 670 | $ | (1,495 | ) | |||
Other comprehensive income before reclassifications | (50 | ) | (384 | ) | (434 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Net current period other comprehensive income | (50 | ) | (384 | ) | (434 | ) | |||||
Balance at June 30, 2014 | $ | (2,215 | ) | $ | 286 | $ | (1,929 | ) |
For the six months ended June 30, 2015 | Pension and Other Postretirement Adjustments | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||
Balance at December 31, 2014 | $ | (3,175 | ) | $ | 362 | $ | (2,813 | ) | |||
Other comprehensive income (loss) before reclassifications | 312 | (401 | ) | (89 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | ||||||||
Net current period other comprehensive income (loss) | 312 | (401 | ) | (89 | ) | ||||||
Balance at June 30, 2015 | $ | (2,863 | ) | $ | (39 | ) | $ | (2,902 | ) | ||
For the six months ended June 30, 2014 | Pension and Other Postretirement Adjustments | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||
Balance at December 31, 2013 | $ | (2,287 | ) | $ | 722 | $ | (1,565 | ) | |||
Other comprehensive income (loss) before reclassifications | 72 | (436 | ) | (364 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | ||||||||
Net current period other comprehensive income (loss) | 72 | (436 | ) | (364 | ) | ||||||
Balance at June 30, 2014 | $ | (2,215 | ) | $ | 286 | $ | (1,929 | ) |
For the three months ended June 30, 2015 | Specialty Phosphates US & Canada | Specialty Phosphates Mexico | GTSP & Other | Eliminations | Total | |||||||||||||||
Sales | $ | 148,376 | $ | 43,886 | $ | 25,032 | $ | — | $ | 217,294 | ||||||||||
Intersegment sales | 2,535 | 14,495 | 86 | (17,116 | ) | — | ||||||||||||||
Total sales | $ | 150,911 | $ | 58,381 | $ | 25,118 | $ | (17,116 | ) | $ | 217,294 | |||||||||
Operating income | $ | 13,470 | $ | 7,362 | $ | 433 | $ | — | $ | 21,265 | ||||||||||
Depreciation and amortization expense | $ | 6,786 | $ | 3,196 | $ | 780 | $ | — | $ | 10,762 | ||||||||||
For the three months ended June 30, 2014 | Specialty Phosphates US & Canada | Specialty Phosphates Mexico | GTSP & Other | Eliminations | Total | |||||||||||||||
Sales | $ | 157,267 | $ | 40,885 | $ | 21,390 | $ | — | $ | 219,542 | ||||||||||
Intersegment sales | 796 | 15,139 | 38 | (15,973 | ) | — | ||||||||||||||
Total sales | $ | 158,063 | $ | 56,024 | $ | 21,428 | $ | (15,973 | ) | $ | 219,542 | |||||||||
Operating income | $ | 21,334 | $ | 10,320 | $ | 155 | $ | — | $ | 31,809 | ||||||||||
Depreciation and amortization expense | $ | 6,291 | $ | 2,277 | $ | 357 | $ | — | $ | 8,925 |
For the six months ended June 30, 2015 | Specialty Phosphates US & Canada | Specialty Phosphates Mexico | GTSP & Other | Eliminations | Total | |||||||||||||||
Sales | $ | 295,500 | $ | 86,106 | $ | 37,297 | $ | — | $ | 418,903 | ||||||||||
Intersegment sales | 5,961 | 28,217 | 145 | (34,323 | ) | — | ||||||||||||||
Total sales | $ | 301,461 | $ | 114,323 | $ | 37,442 | $ | (34,323 | ) | $ | 418,903 | |||||||||
Operating income | $ | 29,657 | $ | 14,281 | $ | (1,312 | ) | $ | — | $ | 42,626 | |||||||||
Depreciation and amortization expense | $ | 13,725 | $ | 5,294 | $ | 1,614 | $ | 20,633 | ||||||||||||
For the six months ended June 30, 2014 | Specialty Phosphates US & Canada | Specialty Phosphates Mexico | GTSP & Other | Eliminations | Total | |||||||||||||||
Sales | $ | 308,277 | $ | 85,374 | $ | 42,232 | $ | 435,883 | ||||||||||||
Intersegment sales | 1,550 | 27,757 | 39 | (29,346 | ) | — | ||||||||||||||
Total sales | $ | 309,827 | $ | 113,131 | $ | 42,271 | $ | (29,346 | ) | $ | 435,883 | |||||||||
Operating income | $ | 41,547 | $ | 16,181 | $ | (3,975 | ) | $ | 53,753 | |||||||||||
Depreciation and amortization expense | $ | 11,609 | $ | 5,046 | $ | 744 | $ | 17,399 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | Three Months Ended | ||||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||||
Amount | % | Amount | % | ||||||||||
Net sales | $ | 217.3 | 100.0 | $ | 219.5 | 100.0 | |||||||
Cost of goods sold | 176.3 | 81.1 | 166.9 | 76.0 | |||||||||
Gross profit | 41.0 | 18.9 | 52.6 | 24.0 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 18.7 | 8.6 | 19.7 | 9.0 | |||||||||
Research & development | 1.0 | 0.5 | 1.1 | 0.5 | |||||||||
Income from operations | 21.3 | 9.8 | 31.8 | 14.5 | |||||||||
Interest expense, net | 1.4 | 0.6 | 1.1 | 0.5 | |||||||||
Foreign exchange losses (gains), net | 0.2 | 0.1 | (1.0 | ) | (0.5 | ) | |||||||
Provision for income taxes | 6.1 | 2.8 | 11.1 | 5.1 | |||||||||
Net income | $ | 13.6 | 6.3 | $ | 20.6 | 9.4 |
Six Months Ended | Six Months Ended | ||||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||||
Amount | % | Amount | % | ||||||||||
Net sales | $ | 418.9 | 100.0 | $ | 435.9 | 100.0 | |||||||
Cost of goods sold | 337.4 | 80.5 | 341.4 | 78.3 | |||||||||
Gross profit | 81.5 | 19.5 | 94.5 | 21.7 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 36.6 | 8.7 | 38.6 | 8.9 | |||||||||
Research & development | 2.3 | 0.5 | 2.1 | 0.5 | |||||||||
Income from operations | 42.6 | 10.2 | 53.8 | 12.3 | |||||||||
Interest expense, net | 2.6 | 0.6 | 1.8 | 0.4 | |||||||||
Foreign exchange losses (gains), net | 2.4 | 0.6 | — | — | |||||||||
Provision for income taxes | 12.1 | 2.9 | 17.2 | 3.9 | |||||||||
Net income | $ | 25.5 | 6.1 | $ | 34.8 | 8.0 |
Price | Volume/Mix | Total | ||||||
Specialty Phosphates US & Canada | (1.7 | )% | (4.0 | )% | (5.7 | )% | ||
Specialty Phosphates Mexico | (3.3 | )% | 10.6 | % | 7.3 | % | ||
Total Specialty Phosphates | (2.0 | )% | (1.0 | )% | (3.0 | )% | ||
GTSP & Other | (11.0 | )% | 28.0 | % | 17.0 | % | ||
Total | (2.9 | )% | 1.9 | % | (1.0 | )% |
Price | Volume/Mix | Total | ||||||
Specialty Ingredients | (2.1 | )% | (5.2 | )% | (7.3 | )% | ||
Food & Technical Grade PPA | (3.6 | )% | 18.7 | % | 15.1 | % | ||
STPP & Detergent Grade PPA | 1.5 | % | (6.0 | )% | (4.5 | )% |
Price | Volume/Mix | Total | ||||||
Specialty Phosphates US & Canada | (2.5 | )% | (1.6 | )% | (4.1 | )% | ||
Specialty Phosphates Mexico | (0.7 | )% | 1.6 | % | 0.9 | % | ||
Total Specialty Phosphates | (2.1 | )% | (1.0 | )% | (3.1 | )% | ||
GTSP & Other | 3.9 | % | (15.6 | )% | (11.7 | )% | ||
Total | (1.5 | )% | (2.4 | )% | (3.9 | )% |
Price | Volume/Mix | Total | ||||||
Specialty Ingredients | (2.3 | )% | (3.7 | )% | (6.0 | )% | ||
Food & Technical Grade PPA | (2.7 | )% | 10.8 | % | 8.1 | % | ||
STPP & Detergent Grade PPA | 0.3 | % | (2.7 | )% | (2.4 | )% |
Three Months Ended | ||||||||||
June 30, 2015 | June 30, 2014 | Net Sales % Change | ||||||||
Segment Net Sales | ||||||||||
Specialty Phosphates US & Canada | $ | 148,376 | $ | 157,267 | (5.7 | )% | ||||
Specialty Phosphates Mexico | 43,886 | 40,885 | 7.3 | % | ||||||
Total Specialty Phosphates | 192,262 | 198,152 | (3.0 | )% | ||||||
GTSP & Other | 25,032 | 21,390 | 17.0 | % | ||||||
Total | $ | 217,294 | $ | 219,542 | (1.0 | )% | ||||
Segment Operating Income | ||||||||||
Specialty Phosphates US & Canada | $ | 13,470 | $ | 21,334 | ||||||
Specialty Phosphates Mexico | 7,362 | 10,320 | ||||||||
Total Specialty Phosphates | 20,832 | 31,654 | ||||||||
GTSP & Other | 433 | 155 | ||||||||
Total | $ | 21,265 | $ | 31,809 | ||||||
Segment Operating Income % of net sales | ||||||||||
Specialty Phosphates US & Canada | 9.1 | % | 13.6 | % | ||||||
Specialty Phosphates Mexico | 16.8 | % | 25.2 | % | ||||||
Total Specialty Phosphates | 10.8 | % | 16.0 | % | ||||||
GTSP & Other | 1.7 | % | 0.7 | % | ||||||
Total | 9.8 | % | 14.5 | % | ||||||
Depreciation and amortization expense | ||||||||||
Specialty Phosphates US & Canada | $ | 6,786 | $ | 6,291 | ||||||
Specialty Phosphates Mexico | 3,196 | 2,277 | ||||||||
Total Specialty Phosphates | $ | 9,982 | $ | 8,568 | ||||||
GTSP & Other | 780 | 357 | ||||||||
Total | $ | 10,762 | $ | 8,925 |
Six Months Ended | ||||||||||
June 30, 2015 | June 30, 2014 | Net Sales % Change | ||||||||
Segment Net Sales | ||||||||||
Specialty Phosphates US & Canada | $ | 295,500 | $ | 308,277 | (4.1 | )% | ||||
Specialty Phosphates Mexico | 86,106 | 85,374 | 0.9 | % | ||||||
Total Specialty Phosphates | 381,606 | 393,651 | (3.1 | )% | ||||||
GTSP & Other | 37,297 | 42,232 | (11.7 | )% | ||||||
Total | $ | 418,903 | $ | 435,883 | (3.9 | )% | ||||
Segment Operating Income | ||||||||||
Specialty Phosphates US & Canada | $ | 29,657 | $ | 41,547 | ||||||
Specialty Phosphates Mexico | 14,281 | 16,181 | ||||||||
Total Specialty Phosphates | 43,938 | 57,728 | ||||||||
GTSP & Other | (1,312 | ) | (3,975 | ) | ||||||
Total | $ | 42,626 | $ | 53,753 | ||||||
Segment Operating Income % of net sales | ||||||||||
Specialty Phosphates US & Canada | 10.0 | % | 13.5 | % | ||||||
Specialty Phosphates Mexico | 16.6 | % | 19.0 | % | ||||||
Total Specialty Phosphates | 11.5 | % | 14.7 | % | ||||||
GTSP & Other | (3.5 | )% | (9.4 | )% | ||||||
Total | 10.2 | % | 12.3 | % | ||||||
Depreciation and amortization expense | ||||||||||
Specialty Phosphates US & Canada | $ | 13,725 | $ | 11,609 | ||||||
Specialty Phosphates Mexico | 5,294 | 5,046 | ||||||||
Total Specialty Phosphates | $ | 19,019 | $ | 16,655 | ||||||
GTSP & Other | 1,614 | 744 | ||||||||
Total | $ | 20,633 | $ | 17,399 |
(Dollars in millions) | Six months ended | ||||||
June 30, 2015 | June 30, 2014 | ||||||
Operating Activities | $ | 55.3 | $ | 68.0 | |||
Investing Activities | (14.1 | ) | (14.7 | ) | |||
Financing Activities | 2.6 | (47.6 | ) | ||||
Effect of foreign exchange rate changes | — | — |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit No. | Description | |
31.1 | Certification of Principal Executive Officer dated July 29, 2015 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Principal Financial Officer dated July 29, 2015 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1* | Certification of Principal Executive Officer dated July 29, 2015 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2* | Certification of Principal Financial Officer dated July 29, 2015 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
* | Not to be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, nor deemed to be incorporated by reference into any filing under that Act or the Securities Act of 1933. |
INNOPHOS HOLDINGS, INC. | |
/s/ Randolph Gress | |
By: | Randolph Gress |
Its: | Chief Executive Officer and Director |
(Principal Executive Officer) | |
Dated: | July 29, 2015 |
INNOPHOS HOLDINGS, INC. | |
/s/ Robert Harrer | |
By: | Robert Harrer |
Its: | Vice President and Chief Financial Officer |
(Principal Financial Officer) | |
Dated: | July 29, 2015 |
Exhibit No. | Description | |
31.1 | Certification of Principal Executive Officer dated July 29, 2015 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Principal Financial Officer dated July 29, 2015 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification of Principal Executive Officer dated July 29, 2015 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | Certification of Principal Financial Officer dated July 29, 2015 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Dated: July 29, 2015 | By: | /S/ RANDOLPH GRESS |
Randolph Gress | ||
Chief Executive Officer and Director (Principal Executive Officer) |
Dated: July 29, 2015 | By: | /S/ Robert Harrer |
Robert Harrer | ||
Vice President and Chief Financial Officer (Principal Financial Officer) |
/S/ RANDOLPH GRESS |
Randolph Gress |
Chief Executive Officer and Director (Principal Executive Officer) |
/S/ Robert Harrer |
Robert Harrer |
Vice President and Chief Financial Officer (Principal Financial Officer) |
Income Taxes - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Income Tax Examination [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 32.00% | 33.00% | |
Effective Income Tax Rate Reconciliation, Tax Contingencies | 1.00% | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | 1.00% | ||
Income Tax Examination, Likelihood of Unfavorable Settlement | P12M | ||
Income Taxes Paid | $ 3,175 | $ 18,010 | |
Canada [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 3,500 | $ 3,500 |
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Other Long-Term Liabilities (Tables) |
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Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Long-Term Liabilities | Other long-term liabilities consist of the following:
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Earnings Per Share (EPS) Earnings Per Share (EPS) (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the weighted average basic number of common shares outstanding to the diluted number of common and common stock equivalent shares outstanding and the calculation of earnings per share using the two-class method:
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Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 52,480 | $ 60,697 |
Finished goods | 109,270 | 111,600 |
Spare parts | 13,294 | 12,324 |
Inventory, Net | 175,044 | 184,621 |
Inventory Valuation Reserves | $ 12,736 | $ 12,626 |
Earnings Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
Dec. 31, 2014 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 13,603 | $ 20,628 | $ 25,546 | $ 34,813 | $ 64,461 |
Less: earnings attributable to unvested shares | (32) | (43) | (46) | (73) | |
Net income available to participating common shareholders | $ 13,571 | $ 20,585 | $ 25,500 | $ 34,740 | |
Basic number of common shares, outstanding | 20,435,846 | 21,876,265 | 20,807,777 | 21,870,343 | |
Dilutive effect of stock equivalents | 287,094 | 375,151 | 302,026 | 373,421 | |
Dilutived number of weighted average common shares outstanding | 20,722,940 | 22,251,416 | 21,109,803 | 22,243,764 | |
Earnings per common share - Basic | $ 0.66 | $ 0.94 | $ 1.23 | $ 1.59 | |
Earnings per common share - Diluted | $ 0.65 | $ 0.93 | $ 1.21 | $ 1.56 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 391,069 | 383,971 | 376,137 | 385,701 |
Segment Reporting (Details) - USD ($) $ in Thousands |
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Sales | $ 217,294 | $ 219,542 | $ 418,903 | $ 435,883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Related Parties | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales | 217,294 | 219,542 | 418,903 | 435,883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 21,265 | 31,809 | 42,626 | 53,753 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 10,762 | 8,925 | 20,633 | 17,399 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Specialty Phosphates US & Canada [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | 148,376 | 157,267 | 295,500 | 308,277 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Related Parties | 2,535 | 796 | 5,961 | 1,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales | 150,911 | 158,063 | 301,461 | 309,827 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 13,470 | 21,334 | 29,657 | 41,547 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 6,786 | 6,291 | 13,725 | 11,609 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Specialty Phosphates Mexico [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | 43,886 | 40,885 | 86,106 | 85,374 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Related Parties | 14,495 | 15,139 | 28,217 | 27,757 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales | 58,381 | 56,024 | 114,323 | 113,131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 7,362 | 10,320 | 14,281 | 16,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 3,196 | 2,277 | 5,294 | 5,046 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GTSP & Other [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | 25,032 | 21,390 | 37,297 | 42,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Related Parties | 86 | 38 | 145 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales | 25,118 | 21,428 | 37,442 | 42,271 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 433 | 155 | (1,312) | (3,975) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 780 | 357 | 1,614 | $ 744 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment Eliminations [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Related Parties | (17,116) | (15,973) | (34,323) | $ (29,346) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales | (17,116) | (15,973) | (34,323) | $ (29,346) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 0 | 0 | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | $ 0 | $ 0 |
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
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Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Deferred income taxes | $ 23,568 | $ 24,400 |
Pension and post retirement liabilities | 10,526 | 10,714 |
Liability for Uncertain Tax Positions, Noncurrent | 2,744 | 2,798 |
Environmental liabilities | 1,100 | 1,100 |
Other liabilities | 2,920 | 2,444 |
Other Liabilities, Noncurrent | $ 40,858 | $ 41,456 |
Basis of Statement Presentation |
6 Months Ended |
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Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Statement Presentation Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Innophos Holdings, Inc. and Subsidiaries, or Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S.) for interim financial reporting and do not include all disclosures required by generally accepted accounting principles in the U.S. for annual financial reporting, and should be read in conjunction with the audited consolidated and combined financial statements of the Company at December 31, 2014 and for the three years then ended. The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments which management considers necessary for a fair statement of the results of operations for the interim periods and is subject to year-end adjustments. The results of operations for the interim periods are not necessarily indicative of the results for the full year. The December 31, 2014 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. Certain prior year balances have been reclassified to conform to current year presentation. Recently Issued Accounting Standards Adopted None. Issued but not yet adopted In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017 (early adoption is permitted to the interim periods within the year of adoption). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. In June 2014, the FASB issued guidance which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The guidance is effective for the interim and annual periods beginning on or after December 15, 2015; early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial position, results of operations and related disclosures. In August 2014 the FASB issued guidance which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016; early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial position, results of operations and related disclosures. In January 2015, the FASB issued new accounting rules which remove the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation (and corresponding earnings per share impact) will no longer be allowed. The new rules will be effective for us in the first quarter of 2016. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures. In February 2015, the Financial Accounting Standard Board issued amendments to the criteria for determining which entities are considered variable interest entities (“VIEs”) and to the criteria for determining if a service provider possesses a variable interest in a VIE and ends the deferral granted to investment companies for application of the VIE consolidation model. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015 and early adoption is permitted. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures. In April 2015, the Financial Accounting Standard Board issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015, and early adoption is permitted. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures, although it will change the financial statement classification of our debt issuance costs. As of June 30, 2015, we have $1.4 million of net deferred financing costs that would be reclassified from a long-term asset to a reduction in the carrying amount of our debt. |
Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
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Other Current Assets: [Abstract] | ||
Creditable taxes (value added taxes) | $ 14,323 | $ 18,124 |
Vendor inventory deposits (prepaid) | 9,607 | 9,483 |
Prepaid income taxes | 6,581 | 12,658 |
Deferred income taxes | 12,142 | 12,647 |
Prepaid Insurance | 739 | 2,109 |
Other | 2,956 | 5,114 |
Other Assets, Current | $ 46,348 | $ 60,135 |
Other Current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Other Assets [Table Text Block] | Other current assets consist of the following:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following:
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Intangibles and Other Assets, net Intangibles and Other Assets, net (Tables) |
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Intangibles and Other Assets, net: [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles and Other Assets [Table Text Block] | Intangibles and other assets consist of the following:
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Other Current Liabilities (Tables) |
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Other Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities [Table Text Block] | Other current liabilities consist of the following:
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Statements of Stockholders' Equity (Unaudited) Statements of Stockholders' Equity Parenthetical - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
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Jun. 30, 2015 |
Dec. 31, 2014 |
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Other Comprehensive Income (Loss), Tax | $ 137 | $ 598 |
Debt and Interest (Tables) |
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Short-term Borrowings, Long-Term Debt, and Interest Expense: [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings and Long-Term Debt [Table Text Block] | Short-term borrowings and long-term debt consist of the following:
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Components of Interest Expense, Net [Table Text Block] | Interest expense, net consists of the following:
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Share-Based Compensation - Summary of Assumptions Used in the Option-Pricing Model (Details) - 3 months ended Jun. 30, 2015 - $ / shares |
Total |
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Share-bsed Compensation [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 46.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 16.46 |
Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
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Other Liabilities, Current [Abstract] | ||
Payroll related | $ 9,718 | $ 12,703 |
Freight and rebates | 5,238 | 5,057 |
Benefits and pensions | 4,550 | 6,640 |
Accrual for Taxes Other than Income Taxes, Current | 3,959 | 4,346 |
Accrued Income Taxes | 2,497 | 1,302 |
Equity repurchases | 2,700 | 0 |
Other | 5,450 | 4,758 |
Other Liabilities, Current | $ 34,112 | $ 34,806 |
Accumulated Other Comprehensive Income (Loss) (Tables) |
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Changes in Accumulated Other Comprehensive Income by Component:
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Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income (Loss) Changes in Accumulated Other Comprehensive Income by Component:
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Basis of Statement Presentation (Policies) |
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Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards Adopted None. Issued but not yet adopted In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017 (early adoption is permitted to the interim periods within the year of adoption). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. In June 2014, the FASB issued guidance which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The guidance is effective for the interim and annual periods beginning on or after December 15, 2015; early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial position, results of operations and related disclosures. In August 2014 the FASB issued guidance which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles in U.S. auditing standards. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016; early adoption is permitted. We do not anticipate that the adoption of this standard will have a material impact on our financial position, results of operations and related disclosures. In January 2015, the FASB issued new accounting rules which remove the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation (and corresponding earnings per share impact) will no longer be allowed. The new rules will be effective for us in the first quarter of 2016. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures. In February 2015, the Financial Accounting Standard Board issued amendments to the criteria for determining which entities are considered variable interest entities (“VIEs”) and to the criteria for determining if a service provider possesses a variable interest in a VIE and ends the deferral granted to investment companies for application of the VIE consolidation model. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015 and early adoption is permitted. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures. In April 2015, the Financial Accounting Standard Board issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015, and early adoption is permitted. We do not anticipate the adoption of the new accounting rules will have a material impact on the our financial position, results of operations and related disclosures, although it will change the financial statement classification of our debt issuance costs. As of June 30, 2015, we have $1.4 million of net deferred financing costs that would be reclassified from a long-term asset to a reduction in the carrying amount of our debt. |
Description of Business and Principles of Consolidation [Policy Text Block] | 1. Basis of Statement Presentation Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Innophos Holdings, Inc. and Subsidiaries, or Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S.) for interim financial reporting and do not include all disclosures required by generally accepted accounting principles in the U.S. for annual financial reporting, and should be read in conjunction with the audited consolidated and combined financial statements of the Company at December 31, 2014 and for the three years then ended. The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments which management considers necessary for a fair statement of the results of operations for the interim periods and is subject to year-end adjustments. The results of operations for the interim periods are not necessarily indicative of the results for the full year. The December 31, 2014 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. |
Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2015 |
Dec. 31, 2014 |
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Common Stock, Shares, Issued | 22,530,969 | 22,447,058 |
Common Stock, Shares, Outstanding | 20,001,272 | 21,480,334 |
Treasury Stock, Shares | 2,529,697 | 966,724 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Debt and Interest |
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Debt and Interest | Short-term Borrowings, Long-Term Debt, and Interest Expense Short-term borrowings and long-term debt consist of the following:
The Company's credit facility includes a term loan of $100.0 million and a revolving line of credit from the Lenders of up to $225.0 million, including a $20.0 million letter of credit sub-facility, all maturing on December 21, 2017. Repayments of the term loan are required at the rate of 1% of original principal amount per quarter beginning on March 31, 2013. As of June 30, 2015, $90.0 million was outstanding under the Term Loan and $154.0 million was outstanding under the revolving line of credit, both of which approximate fair value because they have a floating interest rate (determined using level 2 inputs within the fair value hierarchy) with total availability at $70.1 million, taking into account $0.9 million in face amount of letters of credit issued under the sub-facility. The current weighted average interest rate for all debt is 2.2%. Among its affirmative covenants, the Credit Agreement requires the Companies to maintain the following consolidated ratios (as defined and calculated according to the Credit Agreement) as of the end of each fiscal quarter: (a) “Total Leverage Ratio” less than or equal to 3.00 to 1.00. (b) “Senior Leverage Ratio” less than or equal to 2.50 to 1.00. (c) “Fixed Charge Coverage Ratio” greater than or equal to 1.25 to 1.00. As of June 30, 2015, the Company was in full compliance with all debt covenant requirements. As a result of lower than expected earnings for 2015 combined with the increased borrowings to fund the share repurchase program, the Company’s Senior Leverage Ratio has increased from 0.98 as of December 31, 2014 to 1.89 as of June 30, 2015. In order to make restricted payments such as share repurchases or dividends, the Company must pass an incurrence test of (a) the Total Leverage Ratio and Senior Leverage Ratio shall be 0.50 less than the applicable covenant level and (b) accessible borrowing availability of at least $25.0 million. The applicable Senior Leverage Ratio for the incurrence test is 2.00 to 1.00 which the Company is in compliance with at June 30, 2015. The Company is currently negotiating with the lenders to amend the Credit Agreement to adjust or remove the Senior Leverage Ratio. In the event of unsuccessful negotiations with the lenders, the Company may have to take other courses of action, including but not limited to decreasing the rate of share repurchases. Simultaneous with the term of the credit facility, Innophos entered into an interest rate swap, swapping the LIBOR exposure on $100.0 million adjusting quarterly consistent with the Term Loan, with a fixed rate of 0.9475% plus the applicable margin on the debt expiring in December 2017. This interest rate swap has been designated as a cashflow hedge (Level 2) with the changes in value recorded through other comprehensive income. The fair value of this interest rate swap is a liability of approximately $0.1 million as of June 30, 2015. We manage our interest rate risk by balancing the amount of fixed-rate and floating-rate debt to the extent practicable consistent with our credit status. Total interest paid by the Company for all indebtedness for the six months ended June 30, 2015 and June 30, 2014 was $2,326 and $2,160, respectively. Interest expense, net consists of the following:
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