EX-99.1 2 a2016quarterlysegmentinfor.htm EXHIBIT 99.1 Exhibit

a2016quarterlysegment_image1.jpg                     FOR IMMEDIATE RELEASE


INNOPHOS HOLDINGS, INC. RELEASES 2016 QUARTERLY RESULTS REFLECTING PREVIOUSLY ANNOUNCED NEW OPERATING SEGMENTS
CRANBURY, New Jersey – (May 16, 2017) – Innophos Holdings, Inc. (NASDAQ: IPHS), today publicized its 2016 quarterly segment results according to the new operating segments that were implemented in the first quarter of 2017.
“The new operating segments, which include Food, Health & Nutrition (FHN), Industrial Specialties (IS) and Other, more accurately reflect the underlying business dynamics and align with the new strategic direction of the Company,” said Han Kieftenbeld, Senior Vice President and Chief Financial Officer.
Through the fiscal year ended December 31, 2016, the Company's business was reported in three operating segments: Specialty Phosphates US & Canada, Specialty Phosphates Mexico and GTSP & Other. Changes in the Company's strategic direction to be a market focused organization prompted the Company to change its operating segments to FHN, IS and Other. The Company began to report results under the new operating segments with the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.
To assist investors in making comparisons of financial information for current and future periods with financial information from prior periods, the Company is furnishing certain unaudited historical segment information for the fiscal year and related quarters of 2016, revised to reflect the Company’s new operating segment structure. The changes in the segment structure affect only the manner in which the results for the operating segments were previously reported. The Company’s new segment structure has no impact on the Company’s previously reported consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated balance sheets, consolidated statements of equity and consolidated statements of cash flows. The revised information does not represent a restatement of previously issued financial statements.
About the Company
Innophos is a leading international producer of specialty ingredient solutions that deliver far-reaching, versatile benefits for the food, health, nutrition and industrial markets. We leverage our expertise in the science and technology of blending and formulating phosphate, mineral and botanical based ingredients to help our customers offer products that are tasty, healthy, nutritious and economical. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. For more information, please visit www.innophos.com. 'IPHS-G'
SOURCE Innophos Holdings, Inc.
Contacts
Investors: Mark Feuerbach, 609-366-1204 or investor.relations@innophos.com
Media: Ryan Flaim, Sharron Merrill Associates, 617-542-5300 or IPHS@investorrelations.com
###


Financial Tables Follow
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
2016 Quarterly Segment Information (Unaudited)
(Dollars In thousands)
 
 
 
 
 
 
 
 
Segment Net Sales
  1Q 2016
  2Q 2016 *
  3Q 2016 *
  4Q 2016 *
  FY 2016
 
  1Q 2017
Food, Health and Nutrition
$98,412
$94,662
$93,586
$90,012
$376,672
 
$91,083
Industrial Specialties
74,555
71,912
70,124
61,693
278,284
 
63,672
Other
16,663
15,314
22,327
16,085
70,389
 
11,189
Total
$189,630
$181,888
$186,037
$167,790
$725,345
 
$165,944
 
 
 
 
 
 
 
 
Segment EBITDA
 
 
 
 
 
 
 
Food, Health and Nutrition
$19,933
$19,744
$19,649
$18,802
$78,128
 
$15,624
Industrial Specialties
9,561
10,136
10,237
6,095
36,029
 
9,521
Other
1,312
(1,556)
1,942
(389)
1,309
 
898
Total
$30,806
$28,324
$31,828
$24,508
$115,466
 
$26,043
 
 
 
 
 
 
 
 
Segment EBITDA % of net sales
 
 
 
 
 
 
 
Food, Health and Nutrition
20.3%
20.9%
21.0%
20.9%
20.7%
 
17.2%
Industrial Specialties
12.8%
14.1%
14.6%
9.9%
12.9%
 
15.0%
Other
7.9%
(10.2)%
8.7%
(2.4)%
1.9%
 
8.0%
Total
16.2%
15.6%
17.1%
14.6%
15.9%
 
15.7%
 
 
 
 
 
 
 
 
Segment Adjusted EBITDA
 
 
 
 
 
 
 
Food, Health and Nutrition
$20,385
$20,476
$20,284
$19,359
$80,504
 
$16,561
Industrial Specialties
9,742
10,670
10,555
6,554
37,521
 
10,244
Other
1,131
(1,175)
3,365
357
3,679
 
898
Total
$31,258
$29,971
$34,204
$26,270
$121,704
 
$27,703
 
 
 
 
 
 
 
 
Segment Adjusted EBITDA % of net sales
 
 
 
 
 
 
 
Food, Health and Nutrition
20.7%
21.6%
21.7%
21.5%
21.4%
 
18.2%
Industrial Specialties
13.1%
14.8%
15.1%
10.6%
13.5%
 
16.1%
Other
6.8%
(7.7)%
15.1%
2.2%
5.2%
 
8.0%
Total
16.5%
16.5%
18.4%
15.7%
16.8%
 
16.7%
 
 
 
 
 
 
 
 
Depreciation and amortization expense
 
 
 
 
 
 
 
Food, Health and Nutrition
$4,791
$5,252
$5,802
$4,424
$20,269
 
$5,722
Industrial Specialties
3,059
3,538
2,957
3,091
12,645
 
3,372
Other
1,432
492
1,284
1,357
4,565
 
487
Total
$9,282
$9,282
$10,043
$8,872
$37,479
 
$9,581
 
 
 
 
 
 
 
 
* The interim financial information identified above for 2Q 2016 through 4Q 2016 has not yet been reviewed by
 
 
    our Independent Registered Public Accounting Firm in accordance with standards established by the PCAOB.
 
 
 
 
 
 
 
 
 
 



INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
2016 Quarterly Adjusted EBITDA Reconciliation to Net Income (Unaudited)
(Dollars In thousands)
 
 
 
 
 
 
 
 
 
  1Q 2016
  2Q 2016
  3Q 2016
  4Q 2016
  FY 2016
 
  1Q 2017
 
 
 
 
 
 
 
 
Net Income
$12,842
$12,104
$13,643
$9,382
$47,971
 
$10,923
Interest expense, net
             1,799
             1,913
             1,915
             2,042
             7,669
 
             1,353
Provision for income taxes
             6,883
             5,025
             6,227
             4,212
           22,347
 
             4,186
Depreciation & amortization
             9,282
             9,282
           10,043
             8,872
           37,479
 
             9,581
EBITDA
         30,806
         28,324
         31,828
         24,508
       115,466
 
         26,043
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
Non-cash stock compensation
                534
             1,292
                758
                493
             3,077
 
                717
Translation (income) expense
                (39)
                355
                110
                684
             1,111
 
                (57)
Severance/Restructuring (income) expense
                (43)
0
             1,508
0
             1,465
 
             1,000
Operating expenses related to refinancing
0
0
0
                585
                585
 
0
Adjusted EBITDA
$31,258
$29,971
$34,204
$26,270
$121,704
 
$27,703
 
 
 
 
 
 
 
 
Percent of Sales
16.5%
16.5%
18.4%
15.7%
16.8%
 
16.7%



Additional Information
EBITDA and adjusted EBITDA are supplemental financial measures that are not required by, or presented in accordance with, US GAAP. The Company believes EBITDA and adjusted EBITDA are helpful in analyzing the cash flow generating capability of the business and as performance measures for purposes of presentation in this release.