NORTHBROOK, Ill., Oct. 18,
2023 /PRNewswire/ -- Stepan Company (NYSE: SCL) today
reported:
Third Quarter Highlights
- Reported net income was $12.6
million, or $0.55 per diluted
share, versus a record $39.4 million,
or $1.71 per diluted share, in the
prior year. Adjusted net income* was $14.7 million, or $0.64 per diluted share, versus a record
$46.3 million, or $2.01 per diluted share, in the prior year.
Total Company sales volume decreased 9% versus the prior year.
- Surfactant operating income was $15.4
million versus $39.0 million
in the prior year. This decrease was primarily due to a 7% decline
in global sales volume and lower unit margins. Operating
income improved slightly versus the $15.1
million reported for the second quarter of 2023 primarily
due to new contracted volume for low 1,4 dioxane products.
Demand within the agricultural end market remained low due to
continued customer and channel inventory destocking.
- Polymer operating income was $21.8
million versus $31.9 million
in the prior year. This decrease was primarily due to a 12% decline
in global sales volume, including a 10% decline in Rigid
Polyols. Operating income improved $5.5 million, or 34%, versus the second quarter
of 2023 primarily due to a 7% increase in global Rigid Polyols
demand.
- Specialty Product operating income was $2.4 million versus $9.7
million in the prior year. This decrease was primarily
attributable to lower unit margins and sales volume within the
medium chain triglycerides (MCT) product line. Operating
income was down $1.4 million from the
second quarter of 2023 primarily due to order timing
differences.
- The effect of foreign currency translation positively impacted
net income by $0.7 million, or
$0.03 per diluted share, versus the
prior year.
- The Company increased its quarterly cash dividend in the fourth
quarter of 2023 by $0.01 per share,
or 3%, marking the 56th consecutive year that the Company has
increased its cash dividend to stockholders.
- EBITDA** was $45.1 million during
the third quarter of 2023 versus $76.4
million in the prior year. Adjusted EBITDA** was
$48.0 million versus $85.5 million in the prior year. The
declines in both EBITDA** and adjusted EBITDA** were primarily due
to the 9% reduction in sales volume versus the prior year.
- The Company recorded a $4.1
million after-tax restructuring reserve, associated with the
Company's previously announced voluntary early retirement program,
in the third quarter of 2023. In addition, the Company is
expanding its cost reduction activities and expects to realize
$50.0 million of pre-tax cost savings
in 2024 to help offset inflation and increased expenses related to
the Company's new Pasadena
alkoxylation investment.
* Adjusted net
income and adjusted earnings per share are non-GAAP measures which
exclude deferred compensation income/expense, cash-settled stock
appreciation rights (SARs) income/expense, certain environmental
remediation-related costs as well as other significant and
infrequent/non-recurring items. See Table II for reconciliations of
non-GAAP adjusted net income and adjusted earnings per diluted
share.
|
|
** EBITDA and
adjusted EBITDA are non-GAAP measures. See Table VI for
calculations and GAAP reconciliations of EBITDA and adjusted
EBITDA.
|
YTD Highlights
- Reported net income was $41.4
million, or $1.80 per diluted
share, for the first nine months of 2023 versus $136.3 million, or $5.90 per diluted share, in the prior year.
Adjusted net income* was $43.2
million, or $1.88 per diluted
share, versus $140.0 million, or
$6.06 per diluted share, in the prior
year. Total Company sales volume was down 14% compared to the
first nine months of 2022.
- Cash generated from operations during the first nine months of
2023 was $104.9 million, up
$29.9 million or 40% versus the first
nine months of 2022. Free cash flow continues to be negative
due to the Company's 2023 capital expenditures.
"The Company's third quarter results delivered gradual
volume, adjusted EBITDA and adjusted net income growth versus the
second quarter of 2023. The sequential volume growth was led
by higher Rigid Polyols demand and new contracted volume for low
1,4 dioxane products in our Personal Care business. This was
partially offset by continued customer and channel destocking
within our agricultural business," said Scott Behrens, President and Chief Executive
Officer. "Specific to the third quarter, Surfactant unit
margins were lower versus the prior year due to less favorable
product mix, high-cost raw material inventory carryover, and
pricing pressure in Latin America
from imported products. Specialty Product unit margins were
significantly lower due to high-cost inventory and pricing pressure
related to increased MCT import activity. Expenses were
slightly lower versus prior year due to proactive headcount and
discretionary expense controls implemented earlier in the year and
lower incentive-based compensation accruals. We recorded a
$5.5 million pre-tax restructuring
reserve to manage the transition of employees participating in our
voluntary early retirement program. We continue to make
significant progress on our cash objectives, delivering another
$55 million reduction in our
inventory levels. Finally, we completed our low 1,4 dioxane
capital investments and we are executing the last phase of our
Pasadena, TX alkoxylation
investment which is expected to be operational mid-year
2024."
Financial Summary
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
($ in thousands,
except per share data)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Net Sales
|
|
$
|
562,226
|
|
|
$
|
719,185
|
|
|
|
(22)
|
%
|
|
$
|
1,793,637
|
|
|
$
|
2,146,094
|
|
|
|
(16)
|
%
|
Operating
Income
|
|
$
|
19,517
|
|
|
$
|
54,659
|
|
|
|
(64)
|
%
|
|
$
|
58,383
|
|
|
$
|
195,645
|
|
|
|
(70)
|
%
|
Net Income
|
|
$
|
12,571
|
|
|
$
|
39,384
|
|
|
|
(68)
|
%
|
|
$
|
41,397
|
|
|
$
|
136,319
|
|
|
|
(70)
|
%
|
Earnings per Diluted
Share
|
|
$
|
0.55
|
|
|
$
|
1.71
|
|
|
|
(68)
|
%
|
|
$
|
1.80
|
|
|
$
|
5.90
|
|
|
|
(69)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
*
|
|
$
|
14,730
|
|
|
$
|
46,281
|
|
|
|
(68)
|
%
|
|
$
|
43,206
|
|
|
$
|
140,017
|
|
|
|
(69)
|
%
|
Adjusted Earnings per
Diluted Share *
|
|
$
|
0.64
|
|
|
$
|
2.01
|
|
|
|
(68)
|
%
|
|
$
|
1.88
|
|
|
$
|
6.06
|
|
|
|
(69)
|
%
|
|
|
* See Table II for
reconciliations of non-GAAP adjusted net income and earnings per
diluted share.
|
|
Summary of Third Quarter Adjusted Net Income Items
Adjusted net income excludes non-operational deferred
compensation income/expense, cash-settled SARs income/expense,
certain environmental remediation costs and other significant and
infrequent or non-recurring items.
- Deferred Compensation: The 2023 third quarter
reported net income includes $2.0
million of after-tax income versus $0.9 million of after-tax income in the prior
year.
- Cash-Settled SARs: These management incentive
instruments provide cash to participants equal to the appreciation
on the price of specified shares of Company stock over a specified
period of time. Because income or expense is recognized
merely on the movement in the price of Company stock it has been
excluded, similar to deferred compensation, to arrive at adjusted
net income. The current year third quarter reported net
income includes less than $0.1
million of after-tax income versus $0.1 million of after-tax income in the prior
year.
- Business Restructuring: The 2023 third quarter
reported net income includes $4.2
million of after-tax expense versus $0.1 million of after-tax expense in the prior
year. The current year quarter includes a $4.1 million after-tax restructuring reserve
associated with the Company's voluntary early retirement
program. Both the current and prior year also include
$0.1 million of after-tax
decommissioning expense associated with the Company's Canadian
plant closure.
- Environmental Remediation – The 2023 third quarter
reported net income includes less than $0.1
million of after-tax expense versus $7.9 million of after-tax expense in the prior
year.
Percentage Change in Net Sales
Net sales in the third quarter of 2023 decreased 22%
year-over-year primarily due to lower selling prices and a 9%
decrease in global sales volume. The lower selling prices
were mainly attributable to the pass-through of lower raw material
costs, less favorable product/customer mix and competitive
pressures.
|
|
Three Months Ended
September 30, 2023
|
|
|
Nine Months Ended
September 30, 2023
|
|
Volume
|
|
|
(9)
|
%
|
|
|
(14)
|
%
|
Selling Price &
Mix
|
|
|
(16)
|
%
|
|
|
(3)
|
%
|
Foreign
Translation
|
|
|
3
|
%
|
|
|
1
|
%
|
Total
|
|
|
(22)
|
%
|
|
|
(16)
|
%
|
Segment Results
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
373,836
|
|
|
$
|
474,861
|
|
|
|
(21)
|
%
|
|
$
|
1,233,351
|
|
|
$
|
1,428,211
|
|
|
|
(14)
|
%
|
Polymers
|
|
$
|
169,559
|
|
|
$
|
214,807
|
|
|
|
(21)
|
%
|
|
$
|
495,200
|
|
|
$
|
640,771
|
|
|
|
(23)
|
%
|
Specialty
Products
|
|
$
|
18,831
|
|
|
$
|
29,517
|
|
|
|
(36)
|
%
|
|
$
|
65,086
|
|
|
$
|
77,112
|
|
|
|
(16)
|
%
|
Total Net
Sales
|
|
$
|
562,226
|
|
|
$
|
719,185
|
|
|
|
(22)
|
%
|
|
$
|
1,793,637
|
|
|
$
|
2,146,094
|
|
|
|
(16)
|
%
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
($ in thousands, all
amounts pre-tax)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
15,373
|
|
|
$
|
38,976
|
|
|
|
(61)
|
%
|
|
$
|
57,570
|
|
|
$
|
140,994
|
|
|
|
(59)
|
%
|
Polymers
|
|
$
|
21,813
|
|
|
$
|
31,864
|
|
|
|
(32)
|
%
|
|
$
|
48,137
|
|
|
$
|
79,905
|
|
|
|
(40)
|
%
|
Specialty
Products
|
|
$
|
2,402
|
|
|
$
|
9,685
|
|
|
|
(75)
|
%
|
|
$
|
8,704
|
|
|
$
|
23,246
|
|
|
|
(63)
|
%
|
Total Segment
Operating Income
|
|
$
|
39,588
|
|
|
$
|
80,525
|
|
|
|
(51)
|
%
|
|
$
|
114,411
|
|
|
$
|
244,145
|
|
|
|
(53)
|
%
|
Corporate
Expenses
|
|
$
|
(20,071)
|
|
|
$
|
(25,866)
|
|
|
|
(22)
|
%
|
|
$
|
(56,028)
|
|
|
$
|
(48,500)
|
|
|
|
16
|
%
|
Consolidated Operating
Income
|
|
$
|
19,517
|
|
|
$
|
54,659
|
|
|
|
(64)
|
%
|
|
$
|
58,383
|
|
|
$
|
195,645
|
|
|
|
(70)
|
%
|
Total segment operating income for the third quarter of 2023
decreased $40.9 million, or 51%,
versus the prior year quarter. Total segment operating income
for the first nine months of 2023 was down $129.7 million, or 53%, versus the prior
year.
- Surfactant net sales were $373.8
million for the quarter, a 21% decrease versus the prior
year. Selling prices were down 17% primarily due to the
pass-through of lower raw material costs, less favorable
product/customer mix and competitive pricing pressures in Latin
America. Sales volume decreased 7% year-over-year primarily
due to overall lower demand, continued customer and channel
inventory destocking within the agricultural end market, and the
previously disclosed backward integration by one customer,
associated with the low 1,4 dioxane transition, in the third
quarter of 2022. Foreign currency translation positively
impacted net sales by 3%. Surfactant operating income for the
quarter decreased $23.6 million, or
61%, versus the prior year. This decrease was predominately
due to the 7% decline in sales volume and lower unit margins.
The lower unit margins reflect less favorable product mix,
high-cost inventory carryover and increased competitive pricing
pressures. Higher pre-operating expenses associated with the
Company's new alkoxylation production facility that is being built
in Pasadena, Texas were also a
headwind during the quarter.
- Polymer net sales were $169.6
million for the quarter, a 21% decrease versus the prior
year. Sales volume decreased 12% in the quarter, including a
10% decline in Rigid Polyols, due to lower demand within the Rigid
Polyols, Specialty Polyols and Phthalic Anhydride businesses.
The lower demand primarily reflects customer/channel inventory
destocking and lower construction-related activities within the
North America market. This
was partially offset by volume growth in China. Selling
prices decreased 12%, primarily due to the pass-through of lower
raw material costs, and foreign currency translation positively
impacted net sales by 3%. Polymer operating income decreased
$10.1 million, or 32%, primarily due
to the 12% decrease in global sales volume.
- Specialty Product net sales were $18.8
million for the quarter, a 36% decrease versus the prior
year. Sales volume was down 28% versus prior year while
operating income decreased $7.3
million, or 75%. The decline in operating income was
primarily attributable to lower unit margins and sales volume
within the MCT product line. The lower unit margins were
primarily due to high-cost inventory
carryover.
|
|
Three Months
Ended
September 30,
|
|
|
%
Change
|
|
|
Nine Months
Ended
September 30,
|
|
|
%
Change
|
|
($ in
millions)
|
|
2023
|
|
|
2022
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
31.7
|
|
|
$
|
52.8
|
|
|
|
(40)
|
%
|
|
$
|
105.3
|
|
|
$
|
181.4
|
|
|
|
(42)
|
%
|
Polymers
|
|
$
|
29.7
|
|
|
$
|
39.8
|
|
|
|
(25)
|
%
|
|
$
|
72.6
|
|
|
$
|
103.4
|
|
|
|
(30)
|
%
|
Specialty
Products
|
|
$
|
3.9
|
|
|
$
|
11.2
|
|
|
|
(65)
|
%
|
|
$
|
13.0
|
|
|
$
|
27.6
|
|
|
|
(53)
|
%
|
Unallocated Corporate
|
|
$
|
(20.2)
|
|
|
$
|
(27.4)
|
|
|
|
(26)
|
%
|
|
$
|
(50.8)
|
|
|
$
|
(55.8)
|
|
|
|
(9)
|
%
|
Consolidated
EBITDA
|
|
$
|
45.1
|
|
|
$
|
76.4
|
|
|
|
(41)
|
%
|
|
$
|
140.1
|
|
|
$
|
256.6
|
|
|
|
(45)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
31.6
|
|
|
$
|
52.7
|
|
|
|
(40)
|
%
|
|
$
|
105.1
|
|
|
$
|
181.0
|
|
|
|
(42)
|
%
|
Polymers
|
|
$
|
29.7
|
|
|
$
|
39.8
|
|
|
|
(25)
|
%
|
|
$
|
72.6
|
|
|
$
|
103.3
|
|
|
|
(30)
|
%
|
Specialty
Products
|
|
$
|
3.9
|
|
|
$
|
11.2
|
|
|
|
(65)
|
%
|
|
$
|
13.0
|
|
|
$
|
27.6
|
|
|
|
(53)
|
%
|
Unallocated Corporate
|
|
$
|
(17.2)
|
|
|
$
|
(18.2)
|
|
|
|
(5)
|
%
|
|
$
|
(48.2)
|
|
|
$
|
(50.4)
|
|
|
|
(4)
|
%
|
Consolidated
Adjusted EBITDA
|
|
$
|
48.0
|
|
|
$
|
85.5
|
|
|
|
(44)
|
%
|
|
$
|
142.5
|
|
|
$
|
261.5
|
|
|
|
(46)
|
%
|
- Consolidated EBITDA was $45.1
million for the quarter, a 41% decrease versus the prior
year. Adjusted EBITDA was $48.0
million, a 44% decrease versus the prior year. The
year-over-year decreases in both EBITDA and Adjusted EBITDA were
primarily due to the decline in sales volume in each of the
Company's three business segments. The third quarter of 2023
Adjusted EBITDA of $48.0 million was
slightly higher than the $45.8
million of Adjusted EBITDA reported in the second quarter of
2023.
Corporate Expenses
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Total Corporate
Expenses
|
|
$
|
20,071
|
|
|
$
|
25,866
|
|
|
|
(22)
|
%
|
|
$
|
56,028
|
|
|
$
|
48,500
|
|
|
|
16
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Compensation Expense (Income)
|
|
$
|
(3,101)
|
|
|
$
|
(2,131)
|
|
|
|
46
|
%
|
|
$
|
(856)
|
|
|
$
|
(13,038)
|
|
|
NM
|
|
Business
Restructuring Expense
|
|
$
|
5,628
|
|
|
$
|
92
|
|
|
NM
|
|
|
$
|
5,827
|
|
|
$
|
225
|
|
|
NM
|
|
Environmental Remediation Expense
|
|
$
|
52
|
|
|
$
|
10,372
|
|
|
NM
|
|
|
$
|
513
|
|
|
$
|
11,002
|
|
|
NM
|
|
Adjusted Corporate
Expenses
|
|
$
|
17,492
|
|
|
$
|
17,533
|
|
|
|
(0)
|
%
|
|
$
|
50,544
|
|
|
$
|
50,311
|
|
|
|
0
|
%
|
|
* See Table III for
a discussion of deferred compensation plan
accounting.
|
- Corporate expenses, excluding deferred compensation, business
restructuring and certain environmental remediation costs, were
flat versus the prior year quarter. Lower incentive-based
compensation expenses offset higher salaries, mostly due to the
reallocation of some employee costs from the business units to
corporate during the first quarter of 2023, insurance and
inflation.
Income Taxes
The Company's effective tax rate was 20.5% for the first nine
months of 2023 versus 24.0% for the first nine months of
2022. This year-over-year decrease was primarily attributable
to more favorable tax benefits derived from stock-based
compensation awards exercised or distributed during the first nine
months of 2023.
Shareholder Return
The Company paid $8.2 million of
dividends to shareholders in the third quarter of 2023 and
$24.5 million of dividends to
shareholders during the first nine months of 2023. The
Company has not repurchased any Company stock during the first nine
months 2023 and has $125.1 million
remaining under the share repurchase program authorized by its
Board of Directors. With the cash dividend increase in the fourth
quarter of 2023, the Company has increased its dividend on the
Company's common stock for 56 consecutive years.
Selected Balance Sheet Information
The Company's total debt decreased by $33.2 million and cash decreased by $28.4 million versus June
30, 2023. The decrease in debt primarily reflects
scheduled debt repayments in July
2023 and lower borrowings against the Company's revolving
credit facility. The Company's net debt level decreased
$4.8 million versus June 30, 2023 and the net debt ratio remained
flat at 31% (Net Debt and Net Debt Ratio are non-GAAP
measures).
($ in
millions)
|
|
9/30/23
|
|
|
6/30/23
|
|
|
3/31/23
|
|
|
12/31/22
|
|
Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
$
|
649.4
|
|
|
$
|
682.6
|
|
|
$
|
711.0
|
|
|
$
|
587.1
|
|
Cash
|
|
|
105.5
|
|
|
|
133.9
|
|
|
|
127.0
|
|
|
|
173.8
|
|
Net Debt
|
|
$
|
543.9
|
|
|
$
|
548.7
|
|
|
$
|
584.0
|
|
|
$
|
413.3
|
|
Equity
|
|
|
1,202.8
|
|
|
|
1,215.1
|
|
|
|
1,189.9
|
|
|
|
1,166.1
|
|
Net Debt +
Equity
|
|
$
|
1,746.7
|
|
|
$
|
1,763.8
|
|
|
$
|
1,773.9
|
|
|
$
|
1,579.4
|
|
Net Debt / (Net Debt +
Equity)
|
|
|
31
|
%
|
|
|
31
|
%
|
|
|
33
|
%
|
|
|
26
|
%
|
The major working capital components were:
($ in
millions)
|
|
9/30/23
|
|
|
6/30/23
|
|
|
3/31/23
|
|
|
12/31/22
|
|
Net
Receivables
|
|
$
|
418.2
|
|
|
$
|
423.4
|
|
|
$
|
470.3
|
|
|
$
|
436.9
|
|
Inventories
|
|
|
284.5
|
|
|
|
340.0
|
|
|
|
368.4
|
|
|
|
402.5
|
|
Accounts
Payable
|
|
|
(242.6)
|
|
|
|
(287.6)
|
|
|
|
(289.1)
|
|
|
|
(375.7)
|
|
|
|
$
|
460.1
|
|
|
$
|
475.8
|
|
|
$
|
549.6
|
|
|
$
|
463.7
|
|
Capital spending was $53.7 million
during the quarter and $213.6 million
during the first nine months of 2023. This compares to
$75.9 million and $205.3 million, respectively, in the prior year.
The nine month year-over-year increase is primarily due to
increased expenditures in the U.S. for the advancement of the
Company's new alkoxylation facility in Pasadena, Texas. Capital spending in the
fourth quarter of 2023 is expected to be in the range of
$41 million to $46 million, down versus the first three quarters
of 2023, as spending on the low 1,4 dioxane investments is now
complete and lower remaining capital outlays are anticipated to
complete the new alkoxylation facility. For the full year,
capital expenditures are expected to be in the range of
$255 million to $260 million.
Outlook
"Looking forward, we believe the fourth quarter of 2023 will
face challenges similar to those experienced during the first nine
months, including continued destocking within the agricultural end
market, and the normal low seasonal demand for Rigid Polyols.
We expect to reduce inventory levels further by year-end and we are
nearing the end of our high capital spending phase. As we
look toward 2024, we believe volumes and margins will improve due
to continued recovery in Rigid Polyols demand, growth in Surfactant
volume driven by new contracted business and lower raw material
costs," said Scott Behrens,
President and Chief Executive Officer. "Given the continued
challenging market conditions, we are expanding our cost reduction
activities and expect to deliver $50
million in pre-tax savings in 2024, which will help offset
future inflation and increased expenses associated with the planned
commissioning of our new Pasadena
alkoxylation assets. Our cost reduction activities are
centered around workforce productivity and improved operational
performance across our manufacturing network. A combination
of anticipated market recovery, executing our strategic
initiatives, and the aforementioned cost reductions, should
position us to deliver earnings growth and positive free cash flow
in 2024. We remain confident in our long-term growth and
innovation initiatives."
Conference Call
Stepan Company will host a conference call to discuss its second
quarter results at 10:00 a.m. ET
(9:00 a.m. CT) on October 18, 2023. The call can be accessed by
phone and webcast. To access the call by phone, please click on
this Registration Link, complete the form and you will be provided
with dial in details and a PIN. To avoid delays, we encourage
participants to dial into the conference call ten minutes ahead of
the scheduled start time. The webcast can be accessed through
the Investors/Conference Calls page at www.stepan.com. A
webcast replay of the conference call will be available at the same
location shortly after the call.
Supporting Slides
Slides supporting this press release will be made available at
www.stepan.com through the Investors/Presentations page at
approximately the same time as this press release is issued.
Corporate Profile
Stepan Company is a major manufacturer of specialty and
intermediate chemicals used in a broad range of industries. Stepan
is a leading merchant producer of surfactants, which are the key
ingredients in consumer and industrial cleaning and disinfection
compounds and in agricultural and oilfield solutions. The Company
is also a leading supplier of polyurethane polyols used in the
expanding thermal insulation market, and CASE (Coatings, Adhesives,
Sealants, and Elastomers) industries.
Headquartered in Northbrook,
Illinois, Stepan utilizes a network of modern production
facilities located in North and South
America, Europe and
Asia.
The Company's common stock is traded on the New York Stock
Exchange (NYSE) under the symbol SCL. For more information about
Stepan Company please visit the Company online at
www.stepan.com
More information about Stepan's sustainability program can be
found on the Sustainability page at www.stepan.com
Contact: Luis E. Rojo
847-446-7500
Certain information in this news release consists of
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
include statements about Stepan Company's plans, objectives,
strategies, financial performance and outlook, trends, the amount
and timing of future cash distributions, prospects or future events
and involve known and unknown risks that are difficult to predict.
As a result, Stepan Company's actual financial results,
performance, achievements or prospects may differ materially from
those expressed or implied by these forward-looking statements. In
some cases, you can identify forward-looking statements by the use
of words such as "may," "could," "expect," "intend," "plan,"
"seek," "anticipate," "believe," "estimate," "guidance," "predict,"
"potential," "continue," "likely," "will," "would," "should,"
"illustrative" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by
Stepan Company and its management based on their knowledge and
understanding of the business and industry, are inherently
uncertain. These statements are not guarantees of future
performance, and stockholders should not place undue reliance on
forward-looking statements.
There are a number of risks, uncertainties and other
important factors, many of which are beyond Stepan Company's
control, that could cause actual results to differ materially from
the forward-looking statements contained in this news release. Such
risks, uncertainties and other important factors include, among
other factors, the risks, uncertainties and factors described in
Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and
exhibits to those reports, and include (but are not limited to)
risks and uncertainties related to accidents, unplanned
production shutdowns or disruptions in manufacturing facilities;
reduced demand due to customer product reformulations or new
technologies; our inability to successfully develop or introduce
new products; compliance with laws; our ability to identify
suitable acquisition candidates and successfully complete and
integrate acquisitions; global competition; volatility of raw
material and energy costs and supply; disruptions in transportation
or significant changes in transportation costs; downturns in
certain industries and general economic downturns; international
business risks, including currency exchange rate fluctuations,
legal restrictions and taxes; unfavorable resolution of litigation
against us; maintaining and protecting intellectual property
rights; our ability to access capital markets; global political,
military, security or other instability; costs related to expansion
or other capital projects; interruption or breaches of information
technology systems; our ability to retain executive management and
key personnel; and our debt covenants.
These forward-looking statements are made only as of the date
hereof, and Stepan Company undertakes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise.
Tables follow
Table
I
|
STEPAN COMPANY
|
For the Three and
Nine Months Ended September 30, 2023 and 2022
|
(Unaudited – in
000's, except per share data)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net
Sales
|
|
$
|
562,226
|
|
|
$
|
719,185
|
|
|
$
|
1,793,637
|
|
|
$
|
2,146,094
|
|
Cost of
Sales
|
|
|
490,990
|
|
|
|
600,709
|
|
|
|
1,582,444
|
|
|
|
1,786,785
|
|
Gross
Profit
|
|
|
71,236
|
|
|
|
118,476
|
|
|
|
211,193
|
|
|
|
359,309
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
11,811
|
|
|
|
15,079
|
|
|
|
35,987
|
|
|
|
45,908
|
|
Administrative
|
|
|
22,904
|
|
|
|
33,848
|
|
|
|
68,132
|
|
|
|
79,499
|
|
Research, Development
and Technical Services
|
|
|
14,477
|
|
|
|
16,929
|
|
|
|
43,720
|
|
|
|
50,092
|
|
Deferred Compensation
Expense (Income)
|
|
|
(3,101)
|
|
|
|
(2,131)
|
|
|
|
(856)
|
|
|
|
(13,038)
|
|
|
|
|
46,091
|
|
|
|
63,725
|
|
|
|
146,983
|
|
|
|
162,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
Impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
978
|
|
Business
Restructuring
|
|
|
5,628
|
|
|
|
92
|
|
|
|
5,827
|
|
|
|
225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
19,517
|
|
|
|
54,659
|
|
|
|
58,383
|
|
|
|
195,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
Net
|
|
|
(2,987)
|
|
|
|
(2,221)
|
|
|
|
(9,674)
|
|
|
|
(7,254)
|
|
Other, Net
|
|
|
(690)
|
|
|
|
(1,980)
|
|
|
|
3,348
|
|
|
|
(8,999)
|
|
|
|
|
(3,677)
|
|
|
|
(4,201)
|
|
|
|
(6,326)
|
|
|
|
(16,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
|
15,840
|
|
|
|
50,458
|
|
|
|
52,057
|
|
|
|
179,392
|
|
Provision for Income
Taxes
|
|
|
3,269
|
|
|
|
11,074
|
|
|
|
10,660
|
|
|
|
43,073
|
|
Net
Income
|
|
|
12,571
|
|
|
|
39,384
|
|
|
|
41,397
|
|
|
|
136,319
|
|
Net Income Per
Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.55
|
|
|
$
|
1.73
|
|
|
$
|
1.82
|
|
|
$
|
5.98
|
|
Diluted
|
|
$
|
0.55
|
|
|
$
|
1.71
|
|
|
$
|
1.80
|
|
|
$
|
5.90
|
|
Shares Used to
Compute Net Income Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
22,786
|
|
|
|
22,753
|
|
|
|
22,770
|
|
|
|
22,813
|
|
Diluted
|
|
|
22,930
|
|
|
|
23,034
|
|
|
|
22,956
|
|
|
|
23,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
II
|
Reconciliation of
Non-GAAP Net Income and Earnings per Diluted Share*
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
Net Income
Reported
|
|
$
|
12,571
|
|
|
$
|
0.55
|
|
|
$
|
39,384
|
|
|
$
|
1.71
|
|
|
$
|
41,397
|
|
|
$
|
1.80
|
|
|
$
|
136,319
|
|
|
$
|
5.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Compensation
(Income) Expense
|
|
$
|
(2,038)
|
|
|
$
|
(0.09)
|
|
|
$
|
(938)
|
|
|
$
|
(0.04)
|
|
|
$
|
(2,795)
|
|
|
$
|
(0.12)
|
|
|
$
|
(4,369)
|
|
|
$
|
(0.19)
|
|
|
Business Restructuring
Expense
|
|
$
|
4,219
|
|
|
$
|
0.18
|
|
|
$
|
69
|
|
|
$
|
-
|
|
|
$
|
4,365
|
|
|
$
|
0.19
|
|
|
$
|
169
|
|
|
$
|
0.01
|
|
|
Cash-Settled SARs
(Income) Expense
|
|
$
|
(61)
|
|
|
$
|
-
|
|
|
$
|
(117)
|
|
|
$
|
-
|
|
|
$
|
(145)
|
|
|
$
|
(0.01)
|
|
|
$
|
(464)
|
|
|
$
|
(0.02)
|
|
|
Environmental
Remediation Expense
|
|
$
|
39
|
|
|
$
|
-
|
|
|
$
|
7,883
|
|
|
$
|
0.34
|
|
|
$
|
384
|
|
|
$
|
0.02
|
|
|
$
|
8,362
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
14,730
|
|
|
$
|
0.64
|
|
|
$
|
46,281
|
|
|
$
|
2.01
|
|
|
$
|
43,206
|
|
|
$
|
1.88
|
|
|
$
|
140,017
|
|
|
$
|
6.06
|
|
|
|
* All amounts in
this table are presented after-tax
|
The Company believes that certain measures that are not in
accordance with generally accepted accounting principles (GAAP),
when presented in conjunction with comparable GAAP measures, are
useful for evaluating the Company's operating performance and
provide better clarity on the impact of non-operational
items. Internally, the Company uses this non-GAAP information
as an indicator of business performance and evaluates management's
effectiveness with specific reference to these indicators.
These measures should be considered in addition to, and are neither
a substitute for, nor superior to, measures of financial
performance prepared in accordance with GAAP.
Reconciliation of
Pre-Tax to After-Tax Adjustments
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
Pre-Tax
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Compensation
(Income) Expense
|
|
$
|
(2,717)
|
|
|
|
|
|
$
|
(1,234)
|
|
|
|
|
|
$
|
(3,726)
|
|
|
|
|
|
$
|
(5,748)
|
|
|
|
|
|
Business Restructuring
Expense
|
|
$
|
5,628
|
|
|
|
|
|
$
|
92
|
|
|
|
|
|
$
|
5,827
|
|
|
|
|
|
$
|
225
|
|
|
|
|
|
Cash-Settled SARs
(Income) Expense
|
|
$
|
(82)
|
|
|
|
|
|
$
|
(154)
|
|
|
|
|
|
$
|
(193)
|
|
|
|
|
|
$
|
(609)
|
|
|
|
|
|
Environmental
Remediation Expense
|
|
$
|
52
|
|
|
|
|
|
$
|
10,372
|
|
|
|
|
|
$
|
513
|
|
|
|
|
|
$
|
11,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Pre-Tax Adjustments
|
|
$
|
2,881
|
|
|
|
|
|
$
|
9,076
|
|
|
|
|
|
$
|
2,421
|
|
|
|
|
|
$
|
4,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Tax Effect
on Adjustments
|
|
$
|
(722)
|
|
|
|
|
|
$
|
(2,179)
|
|
|
|
|
|
$
|
(612)
|
|
|
|
|
|
$
|
(1,172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-Tax
Adjustments
|
|
$
|
2,159
|
|
|
$
|
0.09
|
|
|
$
|
6,897
|
|
|
$
|
0.30
|
|
|
$
|
1,809
|
|
|
$
|
0.08
|
|
|
$
|
3,698
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
III
|
Deferred
Compensation Plans
|
|
The full effect of the
deferred compensation plans on quarterly pre-tax income was $2.7
million of income versus $1.2 million of income in the prior year.
The year-to-date impact was $3.7 million of income versus $5.7
million of income in the prior year. The accounting for the
deferred compensation plans results in operating income when the
price of Stepan Company common stock or mutual funds held in the
plans fall and expense when they rise. The Company also
recognizes the change in value of mutual funds as investment income
or loss. The quarter end market prices of Company common
stock were as follows:
|
|
|
|
2023
|
|
|
2022
|
|
|
|
12/31
|
|
9/30
|
|
|
6/30
|
|
|
3/31
|
|
|
12/31
|
|
|
9/30
|
|
|
6/30
|
|
|
3/31
|
|
Stepan
Company
|
|
N/A
|
|
$
|
74.97
|
|
|
$
|
95.56
|
|
|
$
|
103.03
|
|
|
$
|
106.46
|
|
|
$
|
93.67
|
|
|
$
|
101.35
|
|
|
$
|
98.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The deferred compensation income statement impact is summarized
below:
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Deferred
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Expense)
|
|
$
|
3,101
|
|
|
$
|
2,131
|
|
|
$
|
856
|
|
|
$
|
13,038
|
|
Other, net – Mutual
Fund Gain (Loss)
|
|
|
(384)
|
|
|
|
(897)
|
|
|
|
2,870
|
|
|
|
(7,290)
|
|
Total
Pre-Tax
|
|
$
|
2,717
|
|
|
$
|
1,234
|
|
|
$
|
3,726
|
|
|
$
|
5,748
|
|
Total
After-Tax
|
|
$
|
2,038
|
|
|
$
|
938
|
|
|
$
|
2,795
|
|
|
$
|
4,368
|
|
Table
IV
|
Effects of Foreign
Currency Translation
|
|
The Company's foreign
subsidiaries transact business and report financial results in
their respective local currencies. As a result, foreign subsidiary
income statements are translated into U.S. dollars at average
foreign exchange rates appropriate for the reporting period.
Because foreign currency exchange rates fluctuate against the U.S.
dollar over time, foreign currency translation affects
period-to-period comparisons of financial statement items (i.e.,
because foreign exchange rates fluctuate, similar period-to-period
local currency results for a foreign subsidiary may translate into
different U.S. dollar results). Below is a table that
presents the impact that foreign currency translation had on the
changes in consolidated net sales and various income statement line
items for the three and nine month periods ending September 30,
2023 as compared to 2022:
|
|
($ in
millions)
|
|
Three Months
Ended
September 30,
|
|
|
Decrease
|
|
|
Change
Due to Foreign
Currency
Translation
|
|
|
Nine Months
Ended
September 30,
|
|
|
Decrease
|
|
|
Change
Due to Foreign
Currency
Translation
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
562.2
|
|
|
$
|
719.2
|
|
|
$
|
(157.0)
|
|
|
$
|
19.1
|
|
|
$
|
1,793.6
|
|
|
$
|
2,146.1
|
|
|
$
|
(352.5)
|
|
|
$
|
11.1
|
|
Gross Profit
|
|
|
71.2
|
|
|
|
118.5
|
|
|
|
(47.3)
|
|
|
|
1.8
|
|
|
|
211.2
|
|
|
|
359.3
|
|
|
$
|
(148.1)
|
|
|
|
0.7
|
|
Operating
Income
|
|
|
19.5
|
|
|
|
54.7
|
|
|
|
(35.2)
|
|
|
|
0.9
|
|
|
|
58.4
|
|
|
|
195.6
|
|
|
$
|
(137.2)
|
|
|
|
0.1
|
|
Pretax
Income
|
|
|
15.8
|
|
|
|
50.5
|
|
|
|
(34.7)
|
|
|
|
0.9
|
|
|
|
52.1
|
|
|
|
179.4
|
|
|
$
|
(127.3)
|
|
|
|
0.0
|
|
Table V
|
Stepan
Company
|
Consolidated Balance
Sheets
|
September 30, 2023
and December 31, 2022
|
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
$
|
849,436
|
|
|
$
|
1,044,802
|
|
Property, Plant &
Equipment, Net
|
|
|
1,179,972
|
|
|
|
1,073,297
|
|
Other Assets
|
|
|
304,121
|
|
|
|
315,073
|
|
Total Assets
|
|
$
|
2,333,529
|
|
|
$
|
2,433,172
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
$
|
582,077
|
|
|
$
|
670,649
|
|
Deferred Income
Taxes
|
|
|
9,149
|
|
|
|
10,179
|
|
Long-term
Debt
|
|
|
422,375
|
|
|
|
455,029
|
|
Other Non-current
Liabilities
|
|
|
117,157
|
|
|
|
131,250
|
|
Total Stepan Company
Stockholders' Equity
|
|
|
1,202,771
|
|
|
|
1,166,065
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
2,333,529
|
|
|
$
|
2,433,172
|
|
Table
VI
|
Reconciliations of Non-GAAP EBITDA and
Adjusted EBITDA to Operating Income
|
|
|
|
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
15.4
|
|
|
$
|
21.8
|
|
|
$
|
2.4
|
|
|
$
|
(20.1)
|
|
|
$
|
19.5
|
|
Depreciation and Amortization
|
|
$
|
16.3
|
|
|
$
|
7.9
|
|
|
$
|
1.5
|
|
|
$
|
0.6
|
|
|
$
|
26.3
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.7)
|
|
|
$
|
(0.7)
|
|
EBITDA
|
|
$
|
31.7
|
|
|
$
|
29.7
|
|
|
$
|
3.9
|
|
|
$
|
(20.2)
|
|
|
$
|
45.1
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(2.7)
|
|
|
$
|
(2.7)
|
|
Cash
Settled SARs
|
|
$
|
(0.1)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.1)
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5.6
|
|
|
$
|
5.6
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Adjusted
EBITDA
|
|
$
|
31.6
|
|
|
$
|
29.7
|
|
|
$
|
3.9
|
|
|
$
|
(17.2)
|
|
|
$
|
48.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
39.0
|
|
|
$
|
31.9
|
|
|
$
|
9.7
|
|
|
$
|
(25.9)
|
|
|
$
|
54.7
|
|
Depreciation and Amortization
|
|
$
|
13.8
|
|
|
$
|
7.9
|
|
|
$
|
1.5
|
|
|
$
|
0.5
|
|
|
$
|
23.7
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(2.0)
|
|
|
$
|
(2.0)
|
|
EBITDA
|
|
$
|
52.8
|
|
|
$
|
39.8
|
|
|
$
|
11.2
|
|
|
$
|
(27.4)
|
|
|
$
|
76.4
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(1.2)
|
|
|
$
|
(1.2)
|
|
Cash
Settled SARs
|
|
$
|
(0.1)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.1)
|
|
|
$
|
(0.2)
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
10.4
|
|
|
$
|
10.4
|
|
Adjusted
EBITDA
|
|
$
|
52.7
|
|
|
$
|
39.8
|
|
|
$
|
11.2
|
|
|
$
|
(18.2)
|
|
|
$
|
85.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
57.6
|
|
|
$
|
48.1
|
|
|
$
|
8.7
|
|
|
$
|
(56.0)
|
|
|
$
|
58.4
|
|
Depreciation and Amortization
|
|
$
|
47.7
|
|
|
$
|
24.5
|
|
|
$
|
4.3
|
|
|
$
|
1.9
|
|
|
$
|
78.4
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3.3
|
|
|
$
|
3.3
|
|
EBITDA
|
|
$
|
105.3
|
|
|
$
|
72.6
|
|
|
$
|
13.0
|
|
|
$
|
(50.8)
|
|
|
$
|
140.1
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(3.7)
|
|
|
$
|
(3.7)
|
|
Cash
Settled SARs
|
|
$
|
(0.2)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.2)
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5.8
|
|
|
$
|
5.8
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Adjusted
EBITDA
|
|
$
|
105.1
|
|
|
$
|
72.6
|
|
|
$
|
13.0
|
|
|
$
|
(48.2)
|
|
|
$
|
142.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
141.0
|
|
|
$
|
79.9
|
|
|
$
|
23.2
|
|
|
$
|
(48.5)
|
|
|
$
|
195.6
|
|
Depreciation and Amortization
|
|
$
|
40.4
|
|
|
$
|
23.5
|
|
|
$
|
4.4
|
|
|
$
|
1.7
|
|
|
$
|
70.0
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(9.0)
|
|
|
$
|
(9.0)
|
|
EBITDA
|
|
$
|
181.4
|
|
|
$
|
103.4
|
|
|
$
|
27.6
|
|
|
$
|
(55.8)
|
|
|
$
|
256.6
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(5.7)
|
|
|
$
|
(5.7)
|
|
Cash
Settled SARs
|
|
$
|
(0.4)
|
|
|
$
|
(0.1)
|
|
|
$
|
-
|
|
|
$
|
(0.1)
|
|
|
$
|
(0.6)
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
11.0
|
|
|
$
|
11.0
|
|
Adjusted
EBITDA
|
|
$
|
181.0
|
|
|
$
|
103.3
|
|
|
$
|
27.6
|
|
|
$
|
(50.4)
|
|
|
$
|
261.5
|
|
View original
content:https://www.prnewswire.com/news-releases/stepan-reports-third-quarter-results-301960053.html
SOURCE Stepan Company