Adjusted Non-GAAP Diluted EPS of $0.79, in Line with Consensus; Gross Margin Steady at 31.8%; Solid Sales Performance Against Soft Economies; Continued Strong Cash Flows and Balance Sheet Strength LITTLETON, Colo., Aug. 8, 2012 (GLOBE NEWSWIRE) -- Innospec Inc. (Nasdaq:IOSP) today announced its financial results for the second quarter ended June 30, 2012. Total net sales for the second quarter were $178.5 million, a 4 percent decrease from $186.5 million in the corresponding quarter last year. Net income was $15.5 million, or $0.65 per diluted share, compared to $24.6 million, or $1.00 per diluted share, recorded a year ago. EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) for the quarter was $22.8 million, down from $34.2 million posted a year ago. The quarter-over-quarter decrease in reported net income and EBITDA was primarily due to a pre-tax $12.2 million swing in foreign currency exchange gains and losses. Results for the second quarter include after-tax foreign currency exchange losses of $3.4 million, or $0.14 per diluted share; a year ago, special items had a combined positive impact of $3.9 million, or $0.15 per diluted share. Excluding these items, adjusted non-GAAP EPS was $0.79 per diluted share, a decrease from $0.85 a year ago, but in line with consensus analyst expectations for the quarter. Cash generation for the quarter was strong, with operating cash inflows of $12.3 million. Capital expenditure during the quarter was $2.6 million. Net cash stood at $70.5 million at the end of the quarter. EBITDA and net income excluding special items, and related per-share amounts, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below.
|Quarter ended June 30, 2012||Quarter ended June 30, 2011|
|(in millions, except share and per share data)||Income before income taxes||Net income||Diluted EPS||Income before income taxes||Net income||Diluted EPS|
|Reported GAAP amounts||$ 19.5||$ 15.5||$ 0.65||$ 29.5||$ 24.6||$ 1.00|
|Foreign currency exchange losses/(gains)||4.3||3.4||0.14||(7.9)||(6.3)||(0.25)|
|Civil complaint legal and professional expenses||--||--||--||3.0||2.4||0.10|
|Adjusted non-GAAP amounts||$ 23.8||$ 18.9||$ 0.79||$ 24.6||$ 20.7||$ 0.85|