x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
23-0993790
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
One Quaker Park, 901 E. Hector Street,
Conshohocken, Pennsylvania
|
19428 – 2380
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer x
|
Accelerated filer ¨
|
|||
Non-accelerated filer ¨ (Do not check if smaller reporting company)
|
Smaller reporting company ¨
|
Number of Shares of Common Stock
Outstanding on September 30, 2014
|
13,269,266
|
|
Page
|
||
PART I.
|
|
FINANCIAL INFORMATION
|
|
Item 1.
|
|
Financial Statements (unaudited)
|
|
Condensed Consolidated Statement of Income for the Three and Nine Months Ended September 30, 2014 and September 30, 2013
|
3
|
||
|
Condensed Consolidated Statement of Comprehensive Income for the Three and Nine Months Ended September 30, 2014 and September 30, 2013
|
4
|
|
|
Condensed Consolidated Balance Sheet at September 30, 2014 and December 31, 2013
|
5
|
|
|
Condensed Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2014 and September 30, 2013
|
6
|
|
|
Notes to Condensed Consolidated Financial Statements
|
7
|
|
Item 2.
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
22
|
Item 3.
|
|
Quantitative and Qualitative Disclosures about Market Risk
|
30
|
Item 4.
|
|
Controls and Procedures
|
31
|
PART II.
|
|
OTHER INFORMATION
|
32
|
Item 1.
|
Legal Proceedings
|
32
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
32
|
|
Item 6.
|
|
Exhibits
|
33
|
Signatures
|
33
|
|
Unaudited
|
||||||||||||||
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||
|
2014
|
|
2013
|
2014
|
|
2013
|
|||||||||
Net sales
|
$
|
198,867
|
|
$
|
184,059
|
$
|
571,827
|
|
$
|
545,098
|
|||||
Cost of goods sold
|
|
128,567
|
|
|
118,069
|
|
368,197
|
|
|
349,186
|
|||||
Gross profit
|
|
70,300
|
|
|
65,990
|
|
203,630
|
|
|
195,912
|
|||||
Selling, general and administrative expenses
|
|
49,747
|
|
|
47,183
|
|
142,759
|
|
|
139,901
|
|||||
Operating income
|
|
20,553
|
|
|
18,807
|
|
60,871
|
|
|
56,011
|
|||||
Other income (expense), net
|
|
914
|
|
|
(685)
|
|
558
|
|
|
1,962
|
|||||
Interest expense
|
|
(641)
|
|
|
(717)
|
|
(1,747)
|
|
|
(2,223)
|
|||||
Interest income
|
|
642
|
|
|
267
|
|
1,990
|
|
|
665
|
|||||
Income before taxes and equity in net income of associated companies
|
|
21,468
|
|
|
17,672
|
|
61,672
|
|
|
56,415
|
|||||
Taxes on income before equity in net income of associated companies
|
|
5,724
|
|
|
5,972
|
|
18,808
|
|
|
16,933
|
|||||
Income before equity in net income of associated companies
|
|
15,744
|
|
|
11,700
|
|
42,864
|
|
|
39,482
|
|||||
Equity in net income of associated companies
|
|
375
|
|
|
1,605
|
|
2,506
|
|
|
4,689
|
|||||
Net income
|
|
16,119
|
|
|
13,305
|
|
45,370
|
|
|
44,171
|
|||||
Less: Net income attributable to noncontrolling interest
|
|
423
|
|
|
754
|
|
1,517
|
|
|
1,918
|
|||||
Net income attributable to Quaker Chemical Corporation
|
$
|
15,696
|
|
$
|
12,551
|
$
|
43,853
|
|
$
|
42,253
|
|||||
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to Quaker Chemical Corporation Common
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders – basic
|
$
|
1.18
|
|
$
|
0.95
|
$
|
3.31
|
|
$
|
3.21
|
|||||
Net income attributable to Quaker Chemical Corporation Common
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders – diluted
|
$
|
1.18
|
|
$
|
0.95
|
$
|
3.31
|
|
$
|
3.21
|
|||||
Dividends declared
|
$
|
0.300
|
|
$
|
0.250
|
$
|
0.850
|
|
$
|
0.745
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Unaudited
|
|
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
Net income
|
|
$
|
16,119
|
|
$
|
13,305
|
|
$
|
45,370
|
|
$
|
44,171
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Currency translation adjustments
|
|
|
(11,655)
|
|
|
2,272
|
|
|
(9,400)
|
|
|
(3,674)
|
|
||||
Defined benefit retirement plans
|
|
|
1,797
|
|
|
(180)
|
|
|
2,956
|
|
|
1,688
|
|
||||
Unrealized loss on available-for-sale securities
|
|
|
(214)
|
|
|
(333)
|
|
|
(316)
|
|
|
(616)
|
|
||||
Other comprehensive (loss) income
|
|
|
(10,072)
|
|
|
1,759
|
|
|
(6,760)
|
|
|
(2,602)
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive income
|
|
|
6,047
|
|
|
15,064
|
|
|
38,610
|
|
|
41,569
|
|
||||
Less: comprehensive income attributable to noncontrolling interest
|
|
|
(177)
|
|
|
(499)
|
|
|
(1,470)
|
|
|
(699)
|
|
||||
Comprehensive income attributable to Quaker Chemical Corporation
|
|
$
|
5,870
|
|
$
|
14,565
|
|
$
|
37,140
|
|
$
|
40,870
|
|
|
|
Unaudited
|
|
|||||
|
September 30, 2014
|
|
|
December 31, 2013
|
||||
|
|
|
|
|
|
|
||
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
64,221
|
|
|
$
|
68,492
|
|
Accounts receivable, net
|
|
|
188,982
|
|
|
|
165,629
|
|
Inventories
|
|
|
|
|
|
|
|
|
Raw materials and supplies
|
|
|
40,348
|
|
|
|
37,063
|
|
Work-in-process and finished goods
|
|
|
40,186
|
|
|
|
34,494
|
|
Prepaid expenses and other current assets
|
|
|
19,818
|
|
|
|
23,169
|
|
Total current assets
|
|
|
353,555
|
|
|
|
328,847
|
|
Property, plant and equipment, at cost
|
|
|
233,371
|
|
|
|
233,865
|
|
Less accumulated depreciation
|
|
|
(149,575)
|
|
|
|
(148,377)
|
|
Net property, plant and equipment
|
|
|
83,796
|
|
|
|
85,488
|
|
Goodwill
|
|
|
70,053
|
|
|
|
58,151
|
|
Other intangible assets, net
|
|
|
59,301
|
|
|
|
31,272
|
|
Investments in associated companies
|
|
|
21,149
|
|
|
|
19,397
|
|
Deferred income taxes
|
|
|
21,996
|
|
|
|
24,724
|
|
Other assets
|
|
|
34,360
|
|
|
|
36,267
|
|
Total assets
|
|
$
|
644,210
|
|
|
$
|
584,146
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
$
|
571
|
|
|
$
|
1,395
|
|
Accounts and other payables
|
|
|
85,888
|
|
|
|
75,580
|
|
Accrued compensation
|
|
|
16,058
|
|
|
|
20,801
|
|
Other current liabilities
|
|
|
28,362
|
|
|
|
33,080
|
|
Total current liabilities
|
|
|
130,879
|
|
|
|
130,856
|
|
Long-term debt
|
|
|
62,009
|
|
|
|
17,321
|
|
Deferred income taxes
|
|
|
5,920
|
|
|
|
6,729
|
|
Other non-current liabilities
|
|
|
78,391
|
|
|
|
84,544
|
|
Total liabilities
|
|
|
277,199
|
|
|
|
239,450
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding
|
|
|
|
|
|
|
|
|
2014 – 13,269,266 shares; 2013 – 13,196,140 shares
|
|
|
13,269
|
|
|
|
13,196
|
|
Capital in excess of par value
|
|
|
96,717
|
|
|
|
99,038
|
|
Retained earnings
|
|
|
290,876
|
|
|
|
258,285
|
|
Accumulated other comprehensive loss
|
|
|
(41,413)
|
|
|
|
(34,700)
|
|
Total Quaker shareholders’ equity
|
|
|
359,449
|
|
|
|
335,819
|
|
Noncontrolling interest
|
|
|
7,562
|
|
|
|
8,877
|
|
Total equity
|
|
|
367,011
|
|
|
|
344,696
|
|
Total liabilities and equity
|
|
$
|
644,210
|
|
|
$
|
584,146
|
|
Unaudited
|
|||||||
For the Nine Months Ended
|
|||||||
September 30,
|
|||||||
2014
|
2013
|
||||||
Cash flows from operating activities
|
|||||||
Net income
|
$
|
45,370
|
$
|
44,171
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||
Depreciation
|
9,154
|
9,219
|
|||||
Amortization
|
2,754
|
2,621
|
|||||
Equity in undistributed earnings of associated companies, net of dividends
|
(2,306)
|
(2,525)
|
|||||
Deferred compensation and other, net
|
1,672
|
(50)
|
|||||
Stock-based compensation
|
3,959
|
3,133
|
|||||
(Gain) loss on disposal of property, plant and equipment
|
(125)
|
193
|
|||||
Insurance settlements realized
|
(1,214)
|
(731)
|
|||||
Pension and other postretirement benefits
|
178
|
(561)
|
|||||
(Decrease) increase in cash from changes in current assets and current liabilities, net of acquisitions:
|
|||||||
Accounts receivable
|
(23,061)
|
(13,222)
|
|||||
Inventories
|
(9,143)
|
(4,569)
|
|||||
Prepaid expenses and other current assets
|
1,332
|
1,017
|
|||||
Accounts payable and accrued liabilities
|
9,470
|
13,256
|
|||||
Net cash provided by operating activities
|
38,040
|
51,952
|
|||||
Cash flows from investing activities
|
|||||||
Investments in property, plant and equipment
|
(8,376)
|
(7,330)
|
|||||
Payments related to acquisitions, net of cash acquired
|
(51,947)
|
(2,478)
|
|||||
Proceeds from disposition of assets
|
178
|
391
|
|||||
Interest earned on insurance settlements
|
34
|
40
|
|||||
Change in restricted cash, net
|
1,180
|
691
|
|||||
Net cash used in investing activities
|
(58,931)
|
(8,686)
|
|||||
Cash flows from financing activities
|
|||||||
Proceeds from long-term debt
|
45,000
|
—
|
|||||
Repayment of long-term debt
|
(1,106)
|
(12,289)
|
|||||
Dividends paid
|
(10,580)
|
(9,721)
|
|||||
Stock options exercised, other
|
(194)
|
(510)
|
|||||
Excess tax benefit related to stock option exercises
|
430
|
815
|
|||||
Purchase of a noncontrolling interest in an affiliate
|
(7,422)
|
—
|
|||||
Payment of acquisition-related earnout liability
|
(4,709)
|
—
|
|||||
Distributions to noncontrolling affiliate shareholders
|
(1,806)
|
(30)
|
|||||
Net cash provided by (used in) financing activities
|
19,613
|
(21,735)
|
|||||
Effect of exchange rate changes on cash
|
(2,993)
|
(133)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(4,271)
|
21,398
|
|||||
Cash and cash equivalents at beginning of period
|
68,492
|
32,547
|
|||||
Cash and cash equivalents at end of period
|
$
|
64,221
|
$
|
53,945
|
|||
Supplemental cash flow disclosures:
|
|||||||
Non-cash activities:
|
|||||||
Accrued property, plant and equipment purchases
|
$
|
—
|
$
|
1,178
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net sales
|
|||||||||||||||
North America
|
$
|
87,909
|
$
|
79,602
|
$
|
247,137
|
$
|
231,111
|
|||||||
EMEA
|
49,352
|
44,452
|
148,769
|
140,314
|
|||||||||||
Asia/Pacific
|
49,601
|
44,063
|
136,661
|
124,593
|
|||||||||||
South America
|
12,005
|
15,942
|
39,260
|
49,080
|
|||||||||||
Total net sales
|
$
|
198,867
|
$
|
184,059
|
$
|
571,827
|
$
|
545,098
|
|||||||
Operating earnings, excluding indirect operating expenses
|
|||||||||||||||
North America
|
$
|
17,771
|
$
|
15,203
|
$
|
51,350
|
$
|
46,238
|
|||||||
EMEA
|
8,589
|
6,781
|
24,794
|
22,332
|
|||||||||||
Asia/Pacific
|
11,925
|
11,214
|
32,064
|
31,612
|
|||||||||||
South America
|
883
|
2,598
|
3,281
|
7,830
|
|||||||||||
Total operating earnings, excluding indirect operating expenses
|
39,168
|
35,796
|
111,489
|
108,012
|
|||||||||||
Indirect operating expenses
|
(17,489)
|
(16,131)
|
(47,864)
|
(49,380)
|
|||||||||||
Amortization expense
|
(1,126)
|
(858)
|
(2,754)
|
(2,621)
|
|||||||||||
Consolidated operating income
|
20,553
|
18,807
|
60,871
|
56,011
|
|||||||||||
Other income (expense), net
|
914
|
(685)
|
558
|
1,962
|
|||||||||||
Interest expense
|
(641)
|
(717)
|
(1,747)
|
(2,223)
|
|||||||||||
Interest income
|
642
|
267
|
1,990
|
665
|
|||||||||||
Consolidated income before taxes and equity in net income of associated companies
|
$
|
21,468
|
$
|
17,672
|
$
|
61,672
|
$
|
56,415
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
Stock options
|
$
|
171
|
$
|
140
|
$
|
492
|
$
|
378
|
|||||||
Nonvested stock awards and restricted stock units
|
593
|
461
|
1,758
|
1,372
|
|||||||||||
Employee stock purchase plan
|
18
|
17
|
54
|
43
|
|||||||||||
Non-elective and elective 401(k) matching contribution in stock
|
413
|
347
|
1,561
|
1,283
|
|||||||||||
Director stock ownership plan
|
32
|
16
|
94
|
57
|
|||||||||||
Total share-based compensation expense
|
$
|
1,227
|
$
|
981
|
$
|
3,959
|
$
|
3,133
|
Weighted
|
||||||
Average
|
||||||
Weighted Average
|
Remaining
|
|||||
Number of
|
Exercise Price per
|
Contractual
|
||||
Shares
|
Share
|
Term (years)
|
||||
Options outstanding at December 31, 2013
|
75,251
|
$
|
44.49
|
|||
Options granted
|
37,048
|
73.47
|
||||
Options exercised
|
(3,292)
|
42.24
|
||||
Options outstanding at September 30, 2014
|
109,007
|
$
|
54.41
|
5.1
|
||
Options exercisable at September 30, 2014
|
40,628
|
$
|
39.76
|
4.0
|
Weighted
|
Weighted
|
Number
|
Weighted
|
|||||||||||||||
Number
|
Average
|
Average
|
Exercisable
|
Average
|
||||||||||||||
Range of
|
Outstanding
|
Contractual
|
Exercise
|
at
|
Exercise
|
|||||||||||||
Exercise Prices
|
at 9/30/2014
|
Life
|
Price
|
9/30/2014
|
Price
|
|||||||||||||
$
|
0.00
|
-
|
$
|
10.00
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||
$
|
10.01
|
-
|
$
|
20.00
|
6,155
|
2.3
|
18.82
|
6,155
|
18.82
|
|||||||||
$
|
20.01
|
-
|
$
|
30.00
|
—
|
—
|
—
|
—
|
—
|
|||||||||
$
|
30.01
|
-
|
$
|
40.00
|
35,020
|
4.1
|
37.87
|
23,954
|
37.75
|
|||||||||
$
|
40.01
|
-
|
$
|
50.00
|
2,192
|
4.7
|
46.21
|
1,462
|
46.21
|
|||||||||
$
|
50.01
|
-
|
$
|
60.00
|
28,592
|
5.4
|
58.26
|
9,057
|
58.26
|
|||||||||
$
|
60.01
|
-
|
$
|
70.00
|
—
|
—
|
—
|
—
|
—
|
|||||||||
$
|
70.01
|
-
|
$
|
80.00
|
37,048
|
6.4
|
73.47
|
—
|
—
|
|||||||||
109,007
|
5.1
|
54.41
|
40,628
|
39.76
|
2014
|
||
Number of options granted
|
37,048
|
|
Dividend yield
|
2.00
|
%
|
Expected volatility
|
43.34
|
%
|
Risk-free interest rate
|
1.22
|
%
|
Expected term (years)
|
4.0
|
Weighted
|
||||
Average Grant
|
||||
Number of
|
Date Fair Value
|
|||
Shares
|
(per share)
|
|||
Nonvested awards, December 31, 2013
|
115,984
|
$
|
47.27
|
|
Granted
|
55,258
|
$
|
73.80
|
|
Vested
|
(42,223)
|
$
|
40.51
|
|
Forfeited
|
(3,895)
|
$
|
37.01
|
|
Nonvested awards, September 30, 2014
|
125,124
|
$
|
61.59
|
Weighted
|
||||
Average Grant
|
||||
Number of
|
Date Fair Value
|
|||
units
|
(per unit)
|
|||
Nonvested awards, December 31, 2013
|
4,018
|
$
|
49.71
|
|
Granted
|
3,140
|
$
|
75.52
|
|
Nonvested awards, September 30, 2014
|
7,158
|
$
|
61.03
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
Other
|
Other
|
||||||||||||||||||||||
Postretirement
|
Postretirement
|
||||||||||||||||||||||
Pension Benefits
|
Benefits
|
Pension Benefits
|
Benefits
|
||||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
Service cost
|
$
|
716
|
$
|
789
|
$
|
5
|
$
|
9
|
$
|
2,186
|
$
|
2,355
|
$
|
15
|
$
|
26
|
|||||||
Interest cost and other
|
1,506
|
1,394
|
58
|
46
|
4,567
|
4,172
|
174
|
138
|
|||||||||||||||
Expected return on plan assets
|
(1,588)
|
(1,476)
|
—
|
—
|
(4,796)
|
(4,417)
|
—
|
—
|
|||||||||||||||
Actuarial loss amortization
|
763
|
989
|
16
|
8
|
2,311
|
2,961
|
48
|
24
|
|||||||||||||||
Prior service cost amortization
|
(21)
|
23
|
—
|
—
|
830
|
155
|
—
|
—
|
|||||||||||||||
Net periodic benefit cost
|
$
|
1,376
|
$
|
1,719
|
$
|
79
|
$
|
63
|
$
|
5,098
|
$
|
5,226
|
$
|
237
|
$
|
188
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
Change in fair value of acquisition-related earnout liability
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(675)
|
|||||||
Cost streamlining initiative
|
—
|
(211)
|
—
|
(211)
|
|||||||||||
Income from third party license fees
|
181
|
168
|
736
|
716
|
|||||||||||
Net foreign currency exchange gains (losses)
|
160
|
(635)
|
(824)
|
(840)
|
|||||||||||
Net gain on fixed asset disposals
|
25
|
29
|
130
|
267
|
|||||||||||
Non-income tax refunds
|
531
|
—
|
531
|
2,669
|
|||||||||||
Other non-operating income
|
88
|
27
|
152
|
193
|
|||||||||||
Other non-operating expense
|
(71)
|
(63)
|
(167)
|
(157)
|
|||||||||||
Total other income (expense), net
|
$
|
914
|
$
|
(685)
|
$
|
558
|
$
|
1,962
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
Basic earnings per common share
|
|||||||||||||||
Net income attributable to Quaker Chemical Corporation
|
$
|
15,696
|
$
|
12,551
|
$
|
43,853
|
$
|
42,253
|
|||||||
Less: income allocated to participating securities
|
(140)
|
(109)
|
(385)
|
(358)
|
|||||||||||
Net income available to common shareholders
|
$
|
15,556
|
$
|
12,442
|
$
|
43,468
|
$
|
41,895
|
|||||||
Basic weighted average common shares outstanding
|
13,133,668
|
13,062,417
|
13,114,553
|
13,034,289
|
|||||||||||
Basic earnings per common share
|
$
|
1.18
|
$
|
0.95
|
$
|
3.31
|
$
|
3.21
|
|||||||
Diluted earnings per common share
|
|||||||||||||||
Net income attributable to Quaker Chemical Corporation
|
$
|
15,696
|
$
|
12,551
|
$
|
43,853
|
$
|
42,253
|
|||||||
Less: income allocated to participating securities
|
(140)
|
(109)
|
(384)
|
(357)
|
|||||||||||
Net income available to common shareholders
|
$
|
15,556
|
$
|
12,442
|
$
|
43,469
|
$
|
41,896
|
|||||||
Basic weighted average common shares outstanding
|
13,133,668
|
13,062,417
|
13,114,553
|
13,034,289
|
|||||||||||
Effect of dilutive securities
|
22,673
|
22,488
|
21,147
|
25,909
|
|||||||||||
Diluted weighted average common shares outstanding
|
13,156,341
|
13,084,905
|
13,135,700
|
13,060,198
|
|||||||||||
Diluted earnings per common share
|
$
|
1.18
|
$
|
0.95
|
$
|
3.31
|
$
|
3.21
|
North
|
South
|
||||||||||||||||||
America
|
EMEA
|
Asia/Pacific
|
America
|
Total
|
|||||||||||||||
Balance as of December 31, 2013
|
$
|
28,127
|
$
|
11,184
|
$
|
15,018
|
$
|
3,822
|
$
|
58,151
|
|||||||||
Goodwill additions
|
13,429
|
—
|
—
|
—
|
13,429
|
||||||||||||||
Currency translation adjustments
|
(611)
|
(341)
|
(458)
|
(117)
|
(1,527)
|
||||||||||||||
Balance as of September 30, 2014
|
$
|
40,945
|
$
|
10,843
|
$
|
14,560
|
$
|
3,705
|
$
|
70,053
|
Gross Carrying
|
Accumulated
|
||||||||||||||
Amount
|
Amortization
|
||||||||||||||
Definite-lived intangible assets
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Customer lists and rights to sell
|
$
|
53,894
|
$
|
33,559
|
$
|
11,812
|
$
|
10,221
|
|||||||
Trademarks and patents
|
6,628
|
6,838
|
3,628
|
3,202
|
|||||||||||
Formulations and product technology
|
15,338
|
5,808
|
3,968
|
3,709
|
|||||||||||
Other
|
6,540
|
5,544
|
4,791
|
4,445
|
|||||||||||
Total
|
$
|
82,400
|
$
|
51,749
|
$
|
24,199
|
$
|
21,577
|
For the year ended December 31, 2014
|
$
|
4,198
|
For the year ended December 31, 2015
|
$
|
5,777
|
For the year ended December 31, 2016
|
$
|
5,302
|
For the year ended December 31, 2017
|
$
|
4,643
|
For the year ended December 31, 2018
|
$
|
4,619
|
For the year ended December 31, 2019
|
$
|
4,543
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|||||||
|
|
|
|
Capital in
|
|
|
|
|
Other
|
|
|
|
|
|
|
||||||||
|
Common
|
|
Excess of
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
|
|||||||||||
|
Stock
|
|
Par Value
|
|
Earnings
|
|
Loss
|
|
Interest
|
|
Total
|
||||||||||||
Balance at June 30, 2014
|
$
|
13,242
|
|
$
|
95,508
|
|
$
|
279,161
|
|
$
|
(31,587)
|
|
$
|
8,386
|
|
$
|
364,710
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
15,696
|
|
|
—
|
|
|
423
|
|
|
16,119
|
||||||
Amounts reported in other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,826)
|
|
|
(246)
|
|
|
(10,072)
|
||||||
Dividends ($0.30 per share)
|
|
—
|
|
|
—
|
|
|
(3,981)
|
|
|
—
|
|
|
—
|
|
|
(3,981)
|
||||||
Distributions to noncontrolling affiliate shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,149)
|
|
|
(1,149)
|
||||||
Acquisition of noncontrolling interest
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
148
|
|
|
155
|
||||||
Share issuance and equity-based compensation plans
|
|
27
|
|
|
1,039
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,066
|
||||||
Excess tax benefit from stock option exercises
|
|
—
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163
|
||||||
Balance at September 30, 2014
|
$
|
13,269
|
|
$
|
96,717
|
|
$
|
290,876
|
|
$
|
(41,413)
|
|
$
|
7,562
|
|
$
|
367,011
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at June 30, 2013
|
$
|
13,168
|
|
$
|
97,085
|
|
$
|
238,580
|
|
$
|
(45,252)
|
|
$
|
8,776
|
|
$
|
312,357
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
12,551
|
|
|
—
|
|
|
754
|
|
|
13,305
|
||||||
Amounts reported in other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,014
|
|
|
(255)
|
|
|
1,759
|
||||||
Dividends ($0.25 per share)
|
|
—
|
|
|
—
|
|
|
(3,298)
|
|
|
—
|
|
|
—
|
|
|
(3,298)
|
||||||
Distributions to noncontrolling affiliate shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(30)
|
||||||
Share issuance and equity-based compensation plans
|
|
19
|
|
|
368
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
387
|
||||||
Excess tax benefit from stock option exercises
|
|
—
|
|
|
363
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
363
|
||||||
Balance at September 30, 2013
|
$
|
13,187
|
|
$
|
97,816
|
|
$
|
247,833
|
|
$
|
(43,238)
|
|
$
|
9,245
|
|
$
|
324,843
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|||||||
|
|
|
|
Capital in
|
|
|
|
|
Other
|
|
|
|
|
|
|
||||||||
|
Common
|
|
Excess of
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
|
|||||||||||
|
Stock
|
|
Par Value
|
|
Earnings
|
|
Loss
|
|
Interest
|
|
Total
|
||||||||||||
Balance at December 31, 2013
|
$
|
13,196
|
|
$
|
99,038
|
|
$
|
258,285
|
|
$
|
(34,700)
|
|
$
|
8,877
|
|
$
|
344,696
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
43,853
|
|
|
—
|
|
|
1,517
|
|
|
45,370
|
||||||
Amounts reported in other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,713)
|
|
|
(47)
|
|
|
(6,760)
|
||||||
Dividends ($0.85 per share)
|
|
—
|
|
|
—
|
|
|
(11,262)
|
|
|
—
|
|
|
—
|
|
|
(11,262)
|
||||||
Distributions to noncontrolling affiliate shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,806)
|
|
|
(1,806)
|
||||||
Acquisition of noncontrolling interest
|
|
—
|
|
|
(6,443)
|
|
|
—
|
|
|
—
|
|
|
(979)
|
|
|
(7,422)
|
||||||
Share issuance and equity-based compensation plans
|
|
73
|
|
|
3,692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,765
|
||||||
Excess tax benefit from stock option exercises
|
|
—
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
430
|
||||||
Balance at September 30, 2014
|
$
|
13,269
|
|
$
|
96,717
|
|
$
|
290,876
|
|
$
|
(41,413)
|
|
$
|
7,562
|
|
$
|
367,011
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2012
|
$
|
13,095
|
|
$
|
94,470
|
|
$
|
215,390
|
|
$
|
(41,855)
|
|
$
|
8,576
|
|
$
|
289,676
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
42,253
|
|
|
—
|
|
|
1,918
|
|
|
44,171
|
||||||
Amounts reported in other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,383)
|
|
|
(1,219)
|
|
|
(2,602)
|
||||||
Dividends ($0.745 per share)
|
|
—
|
|
|
—
|
|
|
(9,810)
|
|
|
—
|
|
|
—
|
|
|
(9,810)
|
||||||
Distributions to noncontrolling affiliate shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(30)
|
||||||
Share issuance and equity-based compensation plans
|
|
92
|
|
|
2,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,623
|
||||||
Excess tax benefit from stock option exercises
|
|
—
|
|
|
815
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
815
|
||||||
Balance at September 30, 2013
|
$
|
13,187
|
|
$
|
97,816
|
|
$
|
247,833
|
|
$
|
(43,238)
|
|
$
|
9,245
|
|
$
|
324,843
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
||||
|
|
Currency
|
|
Defined
|
|
gain (loss) in
|
|
|
|
||||||
|
|
translation
|
|
benefit
|
|
available-for-
|
|
|
|
||||||
|
|
adjustments
|
|
pension plans
|
|
sale securities
|
|
Total
|
|||||||
Balance at June 30, 2014
|
|
$
|
3,208
|
|
$
|
(36,274)
|
|
$
|
1,479
|
|
$
|
(31,587)
|
|||
Other comprehensive (loss) income before reclassifications
|
|
|
(11,409)
|
|
|
1,698
|
|
|
(24)
|
|
|
(9,735)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
—
|
|
|
759
|
|
|
(300)
|
|
|
459
|
|||
Current period other comprehensive (loss) income
|
|
|
(11,409)
|
|
|
2,457
|
|
|
(324)
|
|
|
(9,276)
|
|||
Related tax amounts
|
|
|
—
|
|
|
(660)
|
|
|
110
|
|
|
(550)
|
|||
Net current period other comprehensive (loss) income
|
|
|
(11,409)
|
|
|
1,797
|
|
|
(214)
|
|
|
(9,826)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at September 30, 2014
|
|
$
|
(8,201)
|
|
$
|
(34,477)
|
|
$
|
1,265
|
|
$
|
(41,413)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at June 30, 2013
|
|
$
|
(1,646)
|
|
$
|
(45,046)
|
|
$
|
1,440
|
|
$
|
(45,252)
|
|||
Other comprehensive income (loss) before reclassifications
|
|
|
2,527
|
|
|
(1,016)
|
|
|
494
|
|
|
2,005
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
—
|
|
|
1,019
|
|
|
(998)
|
|
|
21
|
|||
Current period other comprehensive income (loss)
|
|
|
2,527
|
|
|
3
|
|
|
(504)
|
|
|
2,026
|
|||
Related tax amounts
|
|
|
—
|
|
|
(183)
|
|
|
171
|
|
|
(12)
|
|||
Net current period other comprehensive income (loss)
|
|
|
2,527
|
|
|
(180)
|
|
|
(333)
|
|
|
2,014
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at September 30, 2013
|
|
$
|
881
|
|
$
|
(45,226)
|
|
$
|
1,107
|
|
$
|
(43,238)
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
||||
|
|
Currency
|
|
Defined
|
|
gain (loss) in
|
|
|
|
||||||
|
|
translation
|
|
benefit
|
|
available-for-
|
|
|
|
||||||
|
|
adjustments
|
|
pension plans
|
|
sale securities
|
|
Total
|
|||||||
Balance at December 31, 2013
|
|
$
|
1,152
|
|
$
|
(37,433)
|
|
$
|
1,581
|
|
$
|
(34,700)
|
|||
Other comprehensive (loss) income before reclassifications
|
|
|
(9,353)
|
|
|
1,842
|
|
|
1,481
|
|
|
(6,030)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
—
|
|
|
2,290
|
|
|
(1,959)
|
|
|
331
|
|||
Current period other comprehensive (loss) income
|
|
|
(9,353)
|
|
|
4,132
|
|
|
(478)
|
|
|
(5,699)
|
|||
Related tax amounts
|
|
|
—
|
|
|
(1,176)
|
|
|
162
|
|
|
(1,014)
|
|||
Net current period other comprehensive (loss) income
|
|
|
(9,353)
|
|
|
2,956
|
|
|
(316)
|
|
|
(6,713)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at September 30, 2014
|
|
$
|
(8,201)
|
|
$
|
(34,477)
|
|
$
|
1,265
|
|
$
|
(41,413)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at December 31, 2012
|
|
$
|
3,336
|
|
$
|
(46,914)
|
|
$
|
1,723
|
|
$
|
(41,855)
|
|||
Other comprehensive (loss) income before reclassifications
|
|
|
(2,455)
|
|
|
(468)
|
|
|
1,353
|
|
|
(1,570)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
—
|
|
|
3,140
|
|
|
(2,286)
|
|
|
854
|
|||
Current period other comprehensive (loss) income
|
|
|
(2,455)
|
|
|
2,672
|
|
|
(933)
|
|
|
(716)
|
|||
Related tax amounts
|
|
|
—
|
|
|
(984)
|
|
|
317
|
|
|
(667)
|
|||
Net current period other comprehensive (loss) income
|
|
|
(2,455)
|
|
|
1,688
|
|
|
(616)
|
|
|
(1,383)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance at September 30, 2013
|
|
$
|
881
|
|
$
|
(45,226)
|
|
$
|
1,107
|
|
$
|
(43,238)
|
|
|
||
2014 Acquisition
|
ECLI Products, LLC
|
||
Current assets
|
$
|
6,908
|
|
Fixed assets
|
|
2,712
|
|
Intangibles
|
|
31,110
|
|
Goodwill
|
|
13,429
|
|
Total assets purchased
|
|
54,159
|
|
Current liabilities
|
|
(2,159)
|
|
Total liabilities assumed
|
|
(2,159)
|
|
Cash paid for an acquisition
|
$
|
52,000
|
|
|
|
|
Fair Value Measurements at September 30, 2014
|
|||||||||||
|
Fair Value
|
|
Using Fair Value Hierarchy
|
||||||||||||
|
as of
|
|
|
|
|
|
|
|
|
|
|||||
Assets
|
September 30, 2014
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Company-owned life insurance
|
$
|
1,323
|
|
$
|
—
|
|
$
|
1,323
|
|
$
|
—
|
||||
Company-owned life insurance - Deferred compensation assets
|
|
316
|
|
|
—
|
|
|
316
|
|
|
—
|
||||
Other deferred compensation assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization registered investment companies
|
|
68
|
|
|
68
|
|
|
—
|
|
|
—
|
||||
Mid capitalization registered investment companies
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
||||
Small capitalization registered investment companies
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
||||
International developed and emerging markets registered investment
|
|
|
|
|
|
|
|
|
|
|
|
||||
companies
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
||||
Fixed income registered investment companies
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
$
|
1,769
|
|
$
|
130
|
|
$
|
1,639
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at September 30, 2014
|
|||||||||||
|
Fair Value
|
|
Using Fair Value Hierarchy
|
||||||||||||
|
as of
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
September 30, 2014
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Deferred compensation liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization registered investment companies
|
$
|
390
|
|
$
|
390
|
|
$
|
—
|
|
$
|
—
|
||||
Mid capitalization registered investment companies
|
|
102
|
|
|
102
|
|
|
—
|
|
|
—
|
||||
Small capitalization registered investment companies
|
|
85
|
|
|
85
|
|
|
—
|
|
|
—
|
||||
International developed and emerging markets registered investment
|
|
|
|
|
|
|
|
|
|
|
|
||||
companies
|
|
187
|
|
|
187
|
|
|
—
|
|
|
—
|
||||
Fixed income registered investment companies
|
|
40
|
|
|
40
|
|
|
—
|
|
|
—
|
||||
Fixed general account
|
|
158
|
|
|
—
|
|
|
158
|
|
|
—
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
$
|
962
|
|
$
|
804
|
|
$
|
158
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2013
|
|||||||||||
|
Fair Value
|
|
Using Fair Value Hierarchy
|
||||||||||||
|
as of
|
|
|
|
|
|
|
|
|
|
|||||
Assets
|
December 31, 2013
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Company-owned life insurance
|
$
|
1,885
|
|
$
|
—
|
|
$
|
1,885
|
|
$
|
—
|
||||
Company-owned life insurance - Deferred compensation assets
|
|
409
|
|
|
—
|
|
|
409
|
|
|
—
|
||||
Other deferred compensation assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization registered investment companies
|
|
74
|
|
|
74
|
|
|
—
|
|
|
—
|
||||
Mid capitalization registered investment companies
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
||||
Small capitalization registered investment companies
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
||||
International developed and emerging markets registered investment
|
|
|
|
|
|
|
|
|
|
|
|
||||
companies
|
|
40
|
|
|
40
|
|
|
—
|
|
|
—
|
||||
Fixed income registered investment companies
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
$
|
2,434
|
|
$
|
140
|
|
$
|
2,294
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2013
|
|||||||||||
|
Fair Value
|
|
Using Fair Value Hierarchy
|
||||||||||||
|
as of
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
December 31, 2013
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Deferred compensation liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization registered investment companies
|
$
|
405
|
|
$
|
405
|
|
$
|
—
|
|
$
|
—
|
||||
Mid capitalization registered investment companies
|
|
109
|
|
|
109
|
|
|
—
|
|
|
—
|
||||
Small capitalization registered investment companies
|
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
||||
International developed and emerging markets registered investment
|
|
|
|
|
|
|
|
|
|
|
|
||||
companies
|
|
205
|
|
|
205
|
|
|
—
|
|
|
—
|
||||
Fixed income registered investment companies
|
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
||||
Fixed general account
|
|
167
|
|
|
—
|
|
|
167
|
|
|
—
|
||||
Acquisition-related consideration
|
|
4,876
|
|
|
—
|
|
|
—
|
|
|
4,876
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
$
|
5,900
|
|
$
|
857
|
|
$
|
167
|
|
$
|
4,876
|
|
|
|
Non-competition
|
|
|
|
|||||
|
Earnout
|
|
Agreement
|
|
|
|
|||||
|
Summit
|
|
Obligation
|
|
Total
|
||||||
Balance at December 31, 2013
|
$
|
4,697
|
|
$
|
179
|
|
$
|
4,876
|
|||
Interest accretion
|
|
12
|
|
|
8
|
|
|
20
|
|||
Payments
|
|
(4,709)
|
|
|
(187)
|
|
|
(4,896)
|
|||
Balance at September 30, 2014
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
|
September 30,
|
|
September 30,
|
|||||||||||
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|||
GAAP earnings per diluted share attributable to Quaker Chemical Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Shareholders
|
|
$
|
1.18
|
|
$
|
0.95
|
|
$
|
3.31
|
|
$
|
3.21
|
|||
UK pension plan amendment per diluted share
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|||
U.S. customer bankruptcy per diluted share
|
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|||
Mineral oil excise tax refund per diluted share
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.14)
|
|||
Change in acquisition-related earnout liability per diluted share
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|||
Cost streamlining initiatives per diluted share
|
|
|
—
|
|
|
0.05
|
|
|
0.02
|
|
|
0.07
|
|||
Currency conversion impacts of the Venezuelan Bolivar Fuerte per diluted share
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.03
|
|||
Equity income in a captive insurance company per diluted share
|
|
|
(0.01)
|
|
|
(0.09)
|
|
|
(0.16)
|
|
|
(0.33)
|
|||
Non-GAAP earnings per diluted share
|
|
$
|
1.19
|
|
$
|
0.91
|
|
$
|
3.26
|
|
$
|
2.87
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
|
September 30,
|
|
September 30,
|
|||||||||||
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net income attributable to Quaker Chemical Corporation
|
|
$
|
15,696
|
|
$
|
12,551
|
|
$
|
43,853
|
|
$
|
42,253
|
|||
Depreciation and amortization
|
|
|
4,196
|
|
|
3,952
|
|
|
11,908
|
|
|
11,840
|
|||
Interest expense
|
|
|
641
|
|
|
717
|
|
|
1,747
|
|
|
2,223
|
|||
Taxes on income before equity in net income of associated companies
|
|
|
5,724
|
|
|
5,972
|
|
|
18,808
|
|
|
16,933
|
|||
UK pension plan amendment
|
|
|
—
|
|
|
—
|
|
|
902
|
|
|
—
|
|||
U.S customer bankruptcy
|
|
|
310
|
|
|
—
|
|
|
310
|
|
|
—
|
|||
Mineral oil excise tax refund
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,540)
|
|||
Change in acquisition-related earnout liability
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
675
|
|||
Cost streamlining initiatives
|
|
|
—
|
|
|
875
|
|
|
348
|
|
|
1,277
|
|||
Currency conversion impacts of the Venezuelan Bolivar Fuerte
|
|
|
—
|
|
|
—
|
|
|
321
|
|
|
357
|
|||
Equity income in a captive insurance company
|
|
|
(72)
|
|
|
(1,247)
|
|
|
(2,142)
|
|
|
(4,378)
|
|||
Adjusted EBITDA
|
|
$
|
26,495
|
|
$
|
22,820
|
|
$
|
76,055
|
|
$
|
68,640
|
·
|
statements relating to our business strategy;
|
·
|
our current and future results and plans; and
|
·
|
statements that include the words “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or similar expressions.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
|
|
|
|
|
|
|
(c)
|
|
(d)
|
|
|
|
|
|
|
|
Total Number of
|
|
Maximum
|
|
|
|
|
|
|
|
Shares Purchased as
|
|
Number of Shares that
|
|
|
(a)
|
|
|
(b)
|
|
Part of
|
|
May Yet
|
|
|
Total Number
|
|
|
Average
|
|
Publicly Announced
|
|
Be Purchased Under the
|
|
|
of Shares
|
|
|
Price Paid
|
|
Plans
|
|
Plans or
|
Period
|
|
Purchased (1)
|
|
|
Per Share (2)
|
|
or Programs (3)
|
|
Programs (3)
|
July 1 - July 31
|
|
229
|
|
$
|
77.06
|
|
—
|
|
252,600
|
August 1 - August 31
|
|
297
|
|
$
|
71.04
|
|
—
|
|
252,600
|
September 1 - September 30
|
|
2,816
|
|
$
|
75.26
|
|
—
|
|
252,600
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,342
|
|
$
|
75.01
|
|
—
|
|
252,600
|
(1)
|
All of the 3,342 shares acquired by the Company during the period covered by this report were acquired from employees upon their surrender of previously owned shares in payment of the exercise price of employee stock options exercised, for the payment of taxes upon exercise of employee stock options or for the vesting of restricted stock.
|
(2)
|
The price per share, in each case, represented the closing price of the Company’s common stock on the date of exercise or vesting, as specified by the plan pursuant to which the applicable option or restricted stock was granted.
|
(3)
|
On February 15, 1995, the Board of Directors of the Company authorized a share repurchase program authorizing the repurchase of up to 500,000 shares of Quaker common stock, and, on January 26, 2005, the Board authorized the repurchase of up to an additional 225,000 shares. Under the 1995 action of the Board, 27,600 shares may yet be purchased. Under the 2005 action of the Board, none of the shares authorized have been purchased and, accordingly, all of those shares may yet be purchased. Neither of the share repurchase authorizations has an expiration date.
|
Item 6.
|
Exhibits.
|
(a) Exhibits
|
||||
31.1
|
–
|
|||
31.2
|
–
|
|||
32.1
|
–
|
|||
32.2
|
–
|
|||
101.INS
|
–
|
XBRL Instance Document
|
||
101.SCH
|
–
|
XBRL Extension Schema Document
|
||
101.CAL
|
–
|
XBRL Calculation Linkbase Document
|
||
101.DEF
|
–
|
XBRL Definition Linkbase Document
|
||
101.LAB
|
–
|
XBRL Label Linkbase Document
|
||
101.PRE
|
–
|
XBRL Presentation Linkbase Document
|
QUAKER CHEMICAL CORPORATION
(Registrant)
|
||||
/s/ Margaret M. Loebl
|
||||
Date: October 28, 2014
|
Margaret M. Loebl, Vice President, Chief Financial Officer and Treasurer
(Officer duly authorized on behalf of, and Principal Financial Officer of, the Registrant)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Quaker Chemical Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Michael F. Barry
|
||
Michael F. Barry
|
||
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Quaker Chemical Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Margaret M. Loebl
|
||
Margaret M. Loebl
|
||
Chief Financial Officer
|
Dated: October 28, 2014
|
/s/ Michael F. Barry
|
|
Michael F. Barry
|
||
Chief Executive Officer of Quaker Chemical Corporation
|
Dated: October 28, 2014
|
/s/ Margaret M. Loebl
|
|
Margaret M. Loebl
|
||
Chief Financial Officer of Quaker Chemical Corporation
|
Stock Based Compensation - Options Rollforward (Details) (USD $)
|
9 Months Ended |
---|---|
Sep. 30, 2014
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance | 75,251 |
Options Granted | 37,048 |
Options Exercised | (3,292) |
Ending Balance | 109,007 |
Options Exerciseable | 40,628 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at Beginning of Year | $ 44.49 |
Options Granted | $ 73.47 |
Options Exercised | $ 42.24 |
Outstanding at End of Period | $ 54.41 |
Options Exercisable | $ 39.76 |
Weighted Average Contractual Term [Abstract] | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 1 month |
Weighted Average Remaining Contractual Term, Exercisable | 4 years |
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