Innospec Reports Third Quarter 2016 Financial Results

Business performance on track - one off items impact results; Margins remain strong

Oilfield Services continues to progress; Huntsman acquisition on track

Board maintains 10 percent dividend increase 

EPS impacted by sales phased into Q4 and share-based compensation driven by 32 percent increase in share price

ENGLEWOOD, Colo., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ:IOSP) today announced its financial results for the third quarter ended September 30, 2016.  At the same time, the Company announced that it has declared a semi-annual dividend of $0.34 per common share for the second half of 2016, which will be paid on November 24, 2016 to shareholders of record as of November 15, 2016.  This brings the annual dividend to $0.67 per share, a 10 percent increase over 2015.

Total net sales for the third quarter were $205.5 million, down 19 percent from the $254.2 million reported in the corresponding quarter last year.  Net income was $11.4 million, or $0.47 per diluted share, compared to $35.6 million, or $1.45 per diluted share, recorded a year ago.  Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and fair value adjustments) for the quarter was $21.2 million, a 50 percent decrease from $42.1 million in 2015's third quarter. The comparative quarter last year was bolstered by strong sales in Octane Additives and a very strong quarter in Oilfield Services.

Results for this quarter include several special items, which are summarized in the table below.  Excluding these special items, adjusted non-GAAP EPS was $0.78 per diluted share, compared to $1.18 per diluted share a year ago. Innospec closed the quarter with a net cash position of $19.6 million, compared to a net debt position of $4.7 million at the end of the second quarter. Cash generation in the quarter was strong, with operating cash inflows of $29.8 million before capital expenditures of $4.7 million.

If you liked this article you might like

Strong On High Volume: Innospec (IOSP)

Weak On High Volume: Innospec (IOSP)

Insider Trading Alert - IOSP, CBM And CPSS Traded By Insiders

Trade-Ideas: Innospec (IOSP) Is Today's New Lifetime High Stock

New Lifetime High For Innospec (IOSP)