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Innophos Holdings, Inc. Reports Fourth Quarter And Full Year 2012 Results
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Created 02/14/2013 - 3:15pm

  • Biotech/Biomedical/Health
  • New York
  • United States
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Innophos Holdings, Inc. Reports Fourth Quarter And Full Year 2012 Results

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CRANBURY, N.J., Feb. 14, 2013 /PRNewswire/ -- Innophos Holdings, Inc. (NASDAQ: IPHS), a leading international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets, today announced its financial results for the fourth quarter and full year 2012.

Fourth Quarter Results

    --  Net sales for the fourth quarter 2012 were $209 million, flat with
        fourth quarter 2011.
    --  Specialty Phosphates fourth quarter 2012 sales of $185 million decreased
        1% compared to fourth quarter 2011.
    --  US/Canada Specialty Phosphates sales were up 4% entirely on growth
        related to acquisitions. Excluding acquisition benefits, sales were
        level compared to last year with the business experiencing a greater
        than normal seasonal slowdown arising from year-end customer destocking
        actions.
    --  Mexico Specialty Phosphates sales improved on a sequential basis but
        were lower by 11% compared to the year ago period.
    --  GTSP & Other sales at $24 million for the 2012 fourth quarter were $1
        million above the year ago level on lower market prices, but higher
        volumes.
    --  Diluted EPS( )for the fourth quarter 2012 was $0.60 compared to $0.93
        for the fourth quarter 2011.  Included in the current quarter was $0.02
        per share expense for accelerated deferred financing and interest rate
        premiums related to the senior credit facility refinanced in December
        2012.  The fourth quarter 2011 results included a $0.05 per share
        benefit for changes in estimates on Mexican water duty charges and
        currency translation effects on the Mexican effective tax rate.  Giving
        effect to these adjustments, fourth quarter 2012 diluted EPS would have
        been $0.62 compared to $0.88 for the fourth quarter 2011.

Full Year Results

    --  Net sales for 2012 were $862 million, a 6% increase over 2011.
    --  Specialty Phosphates 2012 sales of $758 million increased 6% compared to
        2011 primarily on higher prices. US/Canada organic volumes were flat,
        and acquisitions added 3% growth which exceeded a decline in Mexico
        volumes.
    --  GTSP & Other sales at $105 million for 2012 were $6 million above the
        year ago level on lower market prices, but higher volumes.
    --  Diluted EPS( )for 2012 was $3.30 compared to $3.83 for 2011.  The fourth
        quarter adjustment items noted above, together with earlier adjustments
        noted in prior quarters, amounted to $0.22 per share for full year 2012
        and $0.02 per share for full year 2011.  Giving effect to these
        adjustments, 2012 diluted EPS would have been $3.08 compared to $3.81
        for 2011.

Randy Gress, CEO of Innophos, commented on the results, "I am satisfied with the progress we made throughout 2012 in delivering on our strategic objectives and positioning the business for future growth. However, our results in 2012 have also reflected the challenging market conditions we have experienced. The environment was particularly reflected in the fourth quarter, as the timing of the holiday season, combined with customer efforts to reduce inventories in an uncertain demand environment, resulted in a significantly more pronounced fourth quarter seasonal slowdown in our US and Canada Specialty Phosphates business. That said, volumes have since recovered strongly in January 2013, which gives us confidence that the effect was limited to the fourth quarter."

Mr. Gress continued, "Our strategic accomplishments in 2012 included two acquisitions in the attractive high growth nutritional ingredients space, as well as a significant step forward in the resources and capabilities dedicated to developing our business in higher growth geographies such as the Asia Pacific region. Our latest acquisition, Triarco, was completed on December 31(st), and I believe Triarco's botanical and enzyme based ingredients business will prove highly complementary to the two mineral ingredients businesses, Kelatron and AMT, that we acquired in late 2011 and mid-2012. Through these acquisitions we have built a strong platform for future growth that will also support growth in our Specialty Phosphate product range."

Mr. Gress concluded, "Looking ahead to the coming year, we are encouraged by what looks to be a strong start and we are confident of continued success with our strategic initiatives. We will also continue to take the necessary steps to ensure we are maximizing shareholder value by leveraging our strong cash flow and balance sheet both to invest in growth and improve cash returns to shareholders, and I expect 2013 to show further progress against both of these goals."

Segment Results - full year and fourth quarter 2012 versus 2011

Specialty Phosphates

For the full year, Specialty Phosphates sales revenue was up 6% year over year with prices up 5%. US/Canada volumes were up 4%, with moderately lower market demand offset by growth initiatives, while acquisitions contributed 3% to growth. Mexico volumes were also affected adversely by lower market demand.

For the quarter, Specialty Phosphates sales revenue was down 1% year over year.

Full year operating income at $108 million was $8 million below 2011 levels as the effects of 2011's market raw material cost inflation were more fully realized in cost of goods sold, thus catching up to selling price increases achieved in earlier periods. Operating income margin for 2012 was 14%, down 210 basis points from 2011 levels, with US/Canada at 15% and Mexico at its expected 12%.

For the quarter, operating income at $20 million was $6 million below fourth quarter 2011 levels primarily due to lower volumes in Mexico. Fourth quarter operating income margin was 11%, down 290 basis points against the fourth quarter 2011 and down 240 points sequentially, with lower volumes and unfavorable mix the primary reason for the quarter margin sequential decline.

US/Canada

US/Canada Specialty Phosphates sales increased 8% for 2012 on 5% higher prices and 3% growth from acquisitions. Excluding acquisitions, volumes were flat due to moderately lower market demand offset by growth initiatives.

For the quarter, sales increased 4%, all attributable to acquisitions. Prices were flat with the year ago period, while continuing success with growth initiatives was fully offset by a greater than anticipated year-end destocking effect.

Operating income at $86 million for 2012 was $8 million below 2011, as the effects described above of raw material cost increases catching up to selling price increases outweighed the selling price increases recognized in 2012. As a result, operating income margins for 2012 at 15% were 280 basis points below 2011 levels.

For the fourth quarter 2012, operating income of $16 million was similar to the year ago quarter, but down $7 million sequentially, resulting in an operating margin of 12%, down 90 basis points against fourth quarter 2011 and down 420 basis points sequentially. The large sequential decline is primarily due to lower volumes causing lower cost leverage with unfavorable product mix also contributing.

Mexico

Mexico Specialty Phosphates 2012 sales were 1% above 2011 on 6% higher prices, but 5% lower volumes, due to soft market demand.

Fourth quarter 2012 volumes improved sequentially to similar levels seen in the 2012 first half. However, fourth quarter sales were down 11% against a very strong fourth quarter 2011, with prices down 5% in the less differentiated technical grade products and volumes down 6%.

Operating income at $22 million for 2012 was flat with 2011 despite the previously noted lower volumes. Operating income margin was 12% for 2012, level with 2011.

For the fourth quarter 2012, operating income of $5 million was down $5 million from fourth quarter 2011 levels, but up $2 million sequentially. The variance against prior year is primarily due to lower sales, along with $2 million of planned maintenance outage expenses in the current quarter. Operating income margin was 10% for the 2012 fourth quarter, below the full year average, as a result of the higher maintenance expense.

GTSP & Other

GTSP & Other sales (primarily fertilizer co-product) increased 6% for 2012 compared to 2011, with volumes up 19% but prices down 13% on average. Market prices increased during the first half of 2012, but fell throughout the second half, returning back to the seasonal lows seen at the beginning of the year.

For the fourth quarter, sales increased 2% compared to fourth quarter 2011, with volumes up 14%, but prices down 12%.

GTSP & Other recorded $2 million of operating income in 2012 compared to $21 million for 2011. Included in the 2012 results is $7 million of income related to the settlement with Rhodia over Mexican water duties charges and $2 million of adjustments related to prior periods. 2011 included $3 million of income resulting from a reduction in the provision for excess Mexican water duties charges. Excluding these adjustments, 2012 had an operating loss of $3 million compared to an operating income of $18 million for 2011. Operating income margins were -3% for 2012 compared to 18% for 2011, excluding the noted adjustments.

For the fourth quarter 2012, GTSP & Other was just above break-even at $0.5 million, down $4 million from the year ago period on a combination of lower phosphate fertilizer market prices and relatively high market raw material costs. Operating income margins were 2% for the fourth quarter 2012 compared to 20% for the fourth quarter 2011.

Recent Trends and Outlook

Market demand was flat to moderately lower in 2012, with this trend accentuated by the year-end destocking already noted. Although we are encouraged by what looks to be a strong start to 2013, this partly represents a carry-over of December orders to January, and we remain cautious on overall demand levels for 2013.

Momentum continues to improve in our product innovation and geographic expansion initiatives; however, we currently expect only modest market growth in 2013. Overall, we expect growth in Specialty Phosphates around the low end of our 4-6% long term target, with further growth of approximately 5% anticipated from the full year benefit of acquisitions completed in 2012. First quarter 2013 revenue growth is expected to be moderately below the full year expectation in comparison to a strong first quarter 2012 for Mexico Specialty Phosphates.

We do not expect any major change in raw material purchase prices or underlying selling prices through the first quarter 2013. However, the US & Canada segment will have higher sequential costs of goods sold in the first quarter reflecting purchase accounting effects for the Triarco acquisition.

We will see a further significant reduction in depreciation as the stepped up asset values created at the formation of the Company in 2004 reach the end of their depreciation lives. This will be partly offset by the amortization of the intangibles associated with recent acquisitions. Overall, we expect depreciation and amortization expense to be $7 million lower in 2013 than in 2012, of which $4.5 million will benefit Specialty Phosphates. This benefit, combined with improved mix and better operating leverage, is expected to increase Specialty Phosphates operating income margins by approximately 200 basis points sequentially. We expect full year Specialty Phosphates operating income margins to be similar to the 15% achieved for the first three quarters of 2012.

For the short term, GTSP is expected to continue near break-even through the first quarter. As with last year, fertilizer prices have been declining through the winter period, and no improvement in pricing is anticipated before the second quarter. Mining expenses for the development of our Mexico phosphate concessions were lower than initially anticipated in the second half of 2012 and are expected to continue at approximately their current run rate for the first half of 2013.

Net debt increased by $69 million in the 2012 fourth quarter to $149 million resulting primarily from the $45 million of cash paid for the Triarco acquisition and a temporary increase in Mexico working capital.

Capital Expenditures

Capital expenditures were $33 million in 2012, with a higher spend rate in the fourth quarter as activity increased on some of the larger initiatives that had been delayed from earlier in the year by changes in engineering specifications. Investment continues to be focused on capacity enhancements for US/Canada and Mexico Specialty Ingredients facilities, expanding geographically, including the investment in China, and enhancing Mexico's capability to process multiple grades of rock, consistent with the Company's supply chain diversification strategy. Our expectation for 2013 is for capital expenditures in the $40-45 million range.

About Innophos Holdings, Inc.

Innophos is a leading international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. Innophos combines more than a century of experience in specialty phosphate manufacturing with a growing capability in a broad range of other specialty ingredients to supply a product range produced to stringent regulatory manufacturing standards and the quality demanded by customers worldwide. Innophos is continually developing new and innovative specialty ingredients addressing specific customer applications and supports these high-value products with industry-leading technical service. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations in Nashville, TN; Chicago Heights, IL; Chicago (Waterway), IL; Geismar, LA; Ogden, UT; North Salt Lake, UT; Paterson, NJ; Green Pond, SC; Port Maitland, ON (Canada); and Coatzacoalcos, Veracruz and San Jose de Iturbide (Mission Hills), Guanajuato (Mexico). For more information please visit www.innophos.com [1]. 'IPHS-G'

Financial Tables Follow

    Innophos Holdings, Inc.            FTI Consulting, Inc.

    Investor Relations: (609) 366-1299 Alexandra Tramont/Matt Steinberg
    investor.relations@innophos.com    212-850-5600

Conference Call Details

The conference call is scheduled for Friday, February 15, 2013 at 10:00 am ET and can be accessed by dialing 888-206-4065 (U.S.) or 630-827-5974 (international) and entering passcode 34232459. Please dial in approximately 15 minutes ahead of the start time to ensure timely entry to the call. A replay will be available between 1:00 pm ET on February 15 and 1:00 pm ET on February 28, 2013. The replay is accessible by dialing 888-843-7419 (U.S.) or 630-652-3042 (international) and entering passcode 6861213#.

Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of Innophos' products and services in the marketplace; competitive factors; technological changes; Innophos' dependence upon fourth-party suppliers; and other risks. For any of these factors, Innophos claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.


Summary Profit & Loss Statement - Fourth Quarter

                                       INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
                              Condensed Consolidated Statement of Operations (Unaudited)
                          (Dollars In thousands, except per share amounts or share amounts)

                                              Three months ended                       Three months ended
                                                 December 31,                             December 31,
                                                                  2012                                     2011

    Net sales                                                 $208,779                                 $209,160
    Cost of goods sold                                         172,374                                  159,568
    Gross profit                                                36,405                                   49,592
    Operating expenses:
         Selling, general
          and administrative                                    14,633                                   18,426
         Research &
          development
          expenses                                                 787                                      718
         Total operating
          expenses                                              15,420                                   19,144
                                                                ------                                   ------
    Operating income                                            20,985                                   30,448
    Interest expense,
     net                                                         1,441                                    1,639
    Foreign exchange
     loss (gain)                                                   242                                   (1,143)
    Income before
     income taxes                                               19,302                                   29,952
    Provision for
     income taxes                                                5,910                                    9,002
    Net income                                                 $13,392                                  $20,950
                                                               =======                                  =======

    Diluted Earnings
     Per Share                                                   $0.60                                    $0.93
    Diluted weighted
     average common
     shares
     outstanding:                                           22,349,160                               22,500,590
    Dividends paid per
     share of common
     stock                                                       $0.35                                    $0.25
    Dividends declared
     per share of
     common stock                                                $0.35                                    $0.25

Segment Reporting - Fourth Quarter

The Company reports its operations in three segments: Specialty Phosphates US & Canada, Specialty Phosphates Mexico and GTSP & Other. The primary performance indicators for the chief operating decision maker are sales and operating income, with sales on a ship-from basis. Sales on a ship-from basis are on the same revenue recognition as a ship-to basis and are recognized when delivery has occurred and title and risk of loss passes to the customer. The following table sets forth the historical results of these indicators by segment:

                                                                                                             Three months ended Three months ended
                                                                                                                December 31,       December 31,              Net Sales
                                                                                                                                    2012               2011   % Change
    Segment Net Sales
    Specialty Phosphates US & Canada                                                                                            $137,288           $132,400        3.7%
    Specialty Phosphates Mexico                                                                                                   47,792             53,577      -10.8%
    Total Specialty Phosphates                                                                                                   185,080            185,977       -0.5%
                                                                                                                                 -------            -------       ----
    GTSP & Other                                                                                                                  23,699             23,183        2.2%
    Total                                                                                                                       $208,779           $209,160       -0.2%
                                                                                                                                ========           ========       ====

    Segment Operating Income
    Specialty Phosphates US & Canada                                                                                             $15,740            $16,442
    Specialty Phosphates Mexico                                                                                                    4,757              9,590
    Total Specialty Phosphates                                                                                                    20,497             26,032
                                                                                                                                  ------             ------
    GTSP & Other (a)                                                                                                                 488              4,416
    Total                                                                                                                        $20,985            $30,448
                                                                                                                                 =======            =======

    Segment Operating Income %  of net sales
    Specialty Phosphates US & Canada                                                                                                11.5%              12.4%
    Specialty Phosphates Mexico                                                                                                     10.0%              17.9%
    Total Specialty Phosphates                                                                                                      11.1%              14.0%
                                                                                                                                    ----               ----
    GTSP & Other (a)                                                                                                                 2.1%              19.0%
    Total                                                                                                                           10.1%              14.6%
                                                                                                                                    ====               ====

    Depreciation and amortization expense
    Specialty Phosphates US & Canada                                                                                              $5,935             $4,911
    Specialty Phosphates Mexico                                                                                                    3,345              5,236
    Total Specialty Phosphates                                                                                                     9,280             10,147
                                                                                                                                   -----             ------
    GTSP & Other                                                                                                                     937              1,086
    Total                                                                                                                        $10,217            $11,233
                                                                                                                                 =======            =======

    (a) The three month period ended December 31, 2011 includes a $0.2 million charge to earnings related to
          updates to the provision for Mexican water duties.

Price / Volume - Fourth Quarter

The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume variance is calculated as the total sales variance minus the selling price variance and refers to the revenue effect of changes in tons sold at the relative prices applicable to the variation in tons, otherwise known as volume/mix.

The following tables illustrate for the three months ended December 31, 2012 the percentage changes in net sales by reportable segments and by Specialty Phosphates product lines compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:

    Reportable Segments                                Price                        Volume/Mix       Total
    -------------------                                -----                        ----------       -----
    Specialty Phosphates US & Canada                    -0.1%                                   3.8%   3.7%
    Specialty Phosphates Mexico                         -5.0%                                  -5.8% -10.8%
    Total Specialty Phosphates                          -1.5%                                   1.0%  -0.5%
    GTSP & Other                                       -11.7%                                  13.9%   2.2%
    Total                                               -2.7%                                   2.5%  -0.2%
                                                        ====                                    ===   ====

    Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US & Canada
              Volume/Mix and 2.6% in Total Specialty Phosphates Volume/Mix


    Specialty Phosphates Product Lines                 Price                        Volume/Mix       Total
    ----------------------------------                 -----                        ----------       -----
    Specialty Ingredients                               -1.1%                                  -0.6%  -1.7%
    Food & Technical Grade PPA                          -4.7%                                   8.1%   3.4%
    STPP & Detergent Grade PPA                           1.5%                                  -1.5%   0.0%

    Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients Volume/Mix

Summary Profit & Loss Statement - Full Year

                                      INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
                             Condensed Consolidated Statement of Operations (Unaudited)
                         (Dollars In thousands, except per share amounts or share amounts)



                                           Year Ended December 31
                                           ----------------------
                                                                 2012                            2011

    Net
     sales                                                   $862,399                        $810,487
    Cost
     of
     goods
     sold                                                     684,979                         605,172
    Gross
     profit                                                   177,420                         205,315
     Operating
     expenses:
          Selling,
          general
          and
          administrative                                       64,320                          65,380
          Research
          &
          development
          expenses                                              3,107                           2,923
         Total
          operating
          expenses                                             67,427                          68,303
                                                               ------                          ------
     Operating
     income                                                   109,993                         137,012
     Interest
     expense,
     net                                                        5,977                           5,726
     Foreign
     exchange
     (gain)
     loss                                                      (1,957)                            875
     Income
     before
     income
     taxes                                                    105,973                         130,411
     Provision
     for
     income
     taxes                                                     31,783                          43,889
    Net
     income                                                   $74,190                         $86,522
                                                              =======                         =======

     Diluted
     Earnings
     Per
     Share                                                      $3.30                           $3.83
     Diluted
     weighted
     average
     common
     shares
     outstanding:                                          22,475,881                      22,578,567
     Dividends
     paid
     per
     share
     of
     common
     stock                                                      $1.14                           $0.92
     Dividends
     declared
     per
     share
     of
     common
     stock                                                      $0.89                           $1.00

Segment Reporting - Full Year

The Company reports its operations in three segments: Specialty Phosphates US & Canada, Specialty Phosphates Mexico and GTSP & Other. The primary performance indicators for the chief operating decision maker are sales and operating income, with sales on a ship-from basis. Sales on a ship-from basis are on the same revenue recognition as a ship-to basis and are recognized when delivery has occurred and title and risk of loss passes to the customer. The following table sets forth the historical results of these indicators by segment:


                                                                                            Net Sales
                                                       Year ended December 31
                                                       ----------------------
                                                            2012                     2011                              % Change
    Segment Net Sales
    Specialty Phosphates
     US & Canada                                        $569,816                 $525,662                                   8.4%
    Specialty Phosphates
     Mexico                                              187,743                  186,211                                   0.8%
    Total Specialty
     Phosphates                                          757,559                  711,873                                   6.4%
                                                         -------                  -------                                   ---
    GTSP & Other                                         104,840                   98,614                                   6.3%
    Total                                               $862,399                 $810,487                                   6.4%
                                                        ========                 ========                                   ===

    Segment Operating Income
    Specialty Phosphates
     US & Canada                                         $86,002                  $94,055
    Specialty Phosphates
     Mexico                                               21,913                   21,948
    Total Specialty
     Phosphates                                          107,915                  116,003
                                                         -------                  -------
    GTSP & Other (a) (b)                                   2,078                   21,009
    Total                                               $109,993                 $137,012
                                                        ========                 ========

    Segment Operating Income %  of net sales
    Specialty Phosphates
     US & Canada                                            15.1%                    17.9%
    Specialty Phosphates
     Mexico                                                 11.7%                    11.8%
    Total Specialty
     Phosphates                                             14.2%                    16.3%
                                                            ----                     ----
    GTSP & Other (a) (b)                                     2.0%                    21.3%
    Total                                                   12.8%                    16.9%
                                                            ====                     ====

    Depreciation and amortization expense
    Specialty Phosphates
     US & Canada                                         $23,215                  $19,808
    Specialty Phosphates
     Mexico                                               14,578                   18,050
    Total Specialty
     Phosphates                                           37,793                   37,858
                                                          ------                   ------
    GTSP & Other                                           4,542                    5,818
    Total                                                $42,335                  $43,676
                                                         =======                  =======

    (a) The year ended December 31, 2012 includes a $7.1 million benefit to earnings primarily for the settlement
          with Rhodia on their liability for the charges to be paid for Mexican water duties and a $2.4 million charge
          to earnings for prior period adjustments.

    (b) The year ended December 31, 2011 includes a $3.4 million benefit to earnings related to updates to the
          provision for Mexican water duties.

Price / Volume - Full Year

The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume variance is calculated as the total sales variance minus the selling price variance and refers to the revenue effect of changes in tons sold at the relative prices applicable to the variation in tons, otherwise known as volume/mix.

The following tables illustrate for the year ended December 31, 2012 the percentage changes in net sales by reportable segments and by Specialty Phosphates product lines compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:

    Reportable Segments                                Price                        Volume/Mix       Total
    -------------------                                -----                        ----------       -----
    Specialty Phosphates US & Canada                     4.8%                                   3.6%   8.4%
    Specialty Phosphates Mexico                          6.1%                                  -5.3%   0.8%
    Total Specialty Phosphates                           5.1%                                   1.3%   6.4%
    GTSP & Other                                       -13.2%                                  19.5%   6.3%
    Total                                                2.9%                                   3.5%   6.4%
                                                         ===                                    ===    ===

    Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US & Canada
              Volume/Mix and 2.7% in Total Specialty Phosphates Volume/Mix


    Specialty Phosphates Product Lines                 Price                        Volume/Mix       Total
    ----------------------------------                 -----                        ----------       -----
    Specialty Ingredients                                4.8%                                   1.0%   5.8%
    Food & Technical Grade PPA                           6.4%                                   7.2%  13.6%
    STPP & Detergent Grade PPA                           4.8%                                  -5.4%  -0.6%

    Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients Volume/Mix

Summary Cash Flow Statement

                                       INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
                             Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                (Dollars in thousands)

                                                  Year ended                              Year ended
                                                 December 31,                            December 31,
                                                                  2012                                   2011
    Cash flows from operating activities
         Net income                                            $74,190                                $86,522
         Adjustments to reconcile net income to net cash
          provided from
         operating activities:
              Depreciation and
               amortization                                     42,334                                 43,676
              Amortization of
               deferred financing
               charges                                             884                                    608
              Deferred income tax
               provision                                           167                                  5,379
              Deferred profit
               sharing                                               -                                   (286)
              Share-based
               compensation                                      1,912                                  6,250
         Changes in assets and liabilities:
             Decrease (increase)
              in accounts
              receivable                                        13,017                                (28,154)
             Decrease (increase)
              in inventories                                    12,154                                (45,021)
             (Increase) decrease
              in other current
              assets                                           (21,283)                                 3,238
             Increase (decrease)
              in accounts
              payable                                            2,059                                 (5,939)
             Decrease in other
              current
              liabilities                                      (20,573)                               (14,685)
             Changes in other
              long-term assets
              and liabilities                                   (3,456)                                (5,242)
                    Net cash provided
                     from operating
                     activities                                101,405                                 46,346
    Cash flows from investing activities:
          Capital
           expenditures                                        (33,060)                               (34,195)
          Acquisition of
           businesses, net of
           cash acquired                                       (71,706)                               (20,533)
                   Net cash used for
                    investing
                    activities                                (104,766)                               (54,728)
    Cash flows used for financing activities:
         Proceeds from
          exercise of stock
          options                                                  528                                    484
         Long-term debt
          borrowings                                           333,000                                 22,000
         Long-term debt
          repayments                                          (309,000)                               (19,000)
         Deferred financing
          costs                                                 (1,461)                                     -
         Excess tax benefits
          from exercise of
          stock options                                          3,931                                  2,511
         Common stock
          repurchases                                           (7,254)                                (6,156)
         Dividends paid                                        (24,810)                               (19,921)
                  Net cash used for
                   financing
                   activities                                   (5,066)                               (20,082)
    Net change in cash                                          (8,427)                               (28,464)
    Cash and cash
     equivalents at
     beginning of
     period                                                     35,242                                 63,706
    Cash and cash
     equivalents at end
     of period                                                 $26,815                                $35,242
                                                               =======                                =======

Summary Balance Sheets

                                        INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
                                   Condensed Consolidated Balance Sheets (Unaudited)
                                                 (Dollars In thousands)

                                                         December 31,                December 31,
                                                                        2012                        2011
    ASSETS
    Current assets:
         Cash and cash equivalents                                   $26,815                     $35,242
         Accounts receivable -trade                                   94,033                     104,421
         Inventories                                                 163,606                     169,728
         Other current assets                                         94,561                      75,316
                   Total current assets                              379,015                     384,707
    Property, plant and
     equipment, net                                                  195,723                     187,421
    Goodwill                                                          83,214                      61,587
    Intangibles and other
     assets, net                                                      79,225                      53,300
                   Total assets                                     $737,177                    $687,015
                                                                    ========                    ========
    LIABILITIES AND
     STOCKHOLDERS' EQUITY
    Current liabilities:
         Current portion of long-
          term debt                                                   $4,000                      $4,000
         Accounts payable, trade and
          other                                                       36,485                      32,640
         Other current liabilities                                    46,030                      71,609
                   Total current liabilities                          86,515                     108,249
    Long-term debt                                                   172,000                     148,000
    Other long-term liabilities                                       34,339                      37,558
                   Total liabilities                                 292,854                     293,807
                                                                     -------                     -------
                   Total stockholders' equity                        444,323                     393,208
                   Total liabilities and
                    stockholders' equity                            $737,177                    $687,015
                                                                    ========                    ========

Additional Information
Net debt is a supplemental financial measure that is not required by, or presented in accordance with, USGAAP. The Company believes net debt is helpful in analyzing leverage and as a performance measure for purposes of presentation in this release. The Company defines net debt as total long-term debt (including any current portion) less cash and cash equivalents.

SOURCE Innophos Holdings, Inc.


dateline: 
CRANBURY, N.J., Feb. 14, 2013
Company Mentioned: 
Innophos Holdings, Inc. [2]

TECHNOLOGY | BIOMEDICAL / BIOTECH / HEALTH | SCIENCE / RESEARCH | FRESHMONEY DEALS - MERGERS / ACQUISITIONS / FUNDING | DEFENSE INDUSTRY | TECH PEOPLE ON THE MOVE | TRADE SHOWS | FINANCIALS / WEBCASTS

Linode

Source URL: http://www.freshnews.com/news/761093/innophos-holdings-inc-reports-fourth-quarter-and-full-year-2012-results

Links:
[1] http://www.innophos.com/
[2] http://www.freshnews.com/node/106552