NORTHBROOK, Ill., Feb. 20,
2024 /PRNewswire/ -- Stepan Company (NYSE: SCL)
today reported:
Fourth Quarter Highlights
- The Company incurred a reported net loss of $1.2 million, or negative $0.05 per diluted share, versus $10.8 million of reported net income, or
$0.47 per diluted share, in the prior
year. Adjusted net income* was $7.5
million, or $0.33 per diluted
share, versus $13.5 million, or
$0.59 per diluted share, in the prior
year. Total Company sales volume increased 3% versus the
prior year.
- Surfactant operating income was $14.8
million versus $21.8 million
in the prior year. This decrease was primarily due to lower
unit margins that were partially offset by a 1% increase in global
sales volume. The lower unit margins primarily reflect less
favorable product mix. Strong double digit volume growth
within the Personal Care end market and to our Distribution
partners was largely offset by lower demand within the Agricultural
end markets in the Americas due to continued customer and channel
inventory destocking.
- Polymer operating income was $12.6
million versus $3.0 million in
the prior year. This increase was primarily due to a 10% increase
in global sales volume. Global Rigid Polyols grew 12% due to
strong double digit growth in North
America and Europe.
- Specialty Product operating income was $2.8 million versus $6.6
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.
- 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 $25.8 million during
the fourth quarter of 2023 versus $36.6
million in the prior year. Adjusted EBITDA** was
$37.5 million versus $40.0 million in the prior
year.
- The Company recorded $6.0 million
of after-tax restructuring and impairment expenses in the quarter,
inclusive of $2.3 million associated
with workforce reductions and $3.7
million of non-cash asset and goodwill/intangible
impairments. As previously announced, the Company expects to
realize $50.0 million of pre-tax cost
savings in 2024 to help offset inflationary pressures, increased
expenses related to the Company's new Pasadena alkoxylation investment and higher
incentive-based compensation expenses.
- Free cash flow for the quarter was a positive $22.3 million and is comprised of $69.0 million of cash generated from operations
less $46.7 million of capital
expenditures (Free cash flow is a non-GAAP measure).
* 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.
Full Year Highlights
- Reported net income for the full year 2023 was $40.2 million, or $1.75 per diluted share, versus a record
$147.2 million, or $6.38 per diluted share, in the prior year.
Adjusted net income* was $50.7
million, or $2.21 per diluted
share, versus a record $153.5
million, or $6.65 per diluted
share, in the prior year. Total Company sales volume declined
11% versus the prior year primarily due to significant customer and
channel inventory destocking across most of the Company's
markets.
- Cash generated from operations during full year 2023 was
$174.9 million, up $14.1 million or 9% versus 2022. Free cash
flow was negative due to $260.3
million of capital expenditures (Free cash flow is a
non-GAAP measure and reflects net cash provided by operations less
capital expenditures).
"The Company had a challenging 2023 due to a slow down in
demand across most end use markets and significant customer and
channel inventory destocking. While we believe the negative
impacts of destocking are mostly behind us, we continue to
experience significant destocking within our agricultural business
and expect this to continue through the first half of 2024," said
Scott Behrens, President and Chief
Executive Officer. "Specific to the fourth quarter, overall
volume increased 3% versus the prior year driven by double digit
growth in Rigid Polyols volumes at improved margins.
Surfactants experienced strong volume growth in Personal Care,
Industrial Cleaning and to our Distribution partners.
Surfactant unit margins were lower versus the prior year due to a
less favorable product mix and actions taken to recover share loss
in Latin America due to lower
priced imported products. MCT unit margins within our
Specialty Product segment were lower year over year as we worked
through the remainder of our high-cost inventory in a competitive
market environment. We are pleased that actions to control
expenses and lower inventories, coupled with lower sequential
capital spending, led to $22.3
million of positive free cash flow in the quarter."
Financial Summary
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in thousands,
except per share data)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Net Sales
|
|
$
|
532,131
|
|
|
$
|
627,176
|
|
|
|
(15)
|
%
|
|
$
|
2,325,768
|
|
|
$
|
2,773,270
|
|
|
|
(16)
|
%
|
Operating
Income
|
|
$
|
230
|
|
|
$
|
11,691
|
|
|
|
(98)
|
%
|
|
$
|
58,613
|
|
|
$
|
207,336
|
|
|
|
(72)
|
%
|
Net Income
|
|
$
|
(1,193)
|
|
|
$
|
10,834
|
|
|
|
(111)
|
%
|
|
$
|
40,204
|
|
|
$
|
147,153
|
|
|
|
(73)
|
%
|
Earnings per Diluted
Share
|
|
$
|
(0.05)
|
|
|
$
|
0.47
|
|
|
|
(111)
|
%
|
|
$
|
1.75
|
|
|
$
|
6.38
|
|
|
|
(73)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
*
|
|
$
|
7,485
|
|
|
$
|
13,456
|
|
|
|
(44)
|
%
|
|
$
|
50,692
|
|
|
$
|
153,473
|
|
|
|
(67)
|
%
|
Adjusted Earnings
per
Diluted Share *
|
|
$
|
0.33
|
|
|
$
|
0.59
|
|
|
|
(44)
|
%
|
|
$
|
2.21
|
|
|
$
|
6.65
|
|
|
|
(67)
|
%
|
|
|
* See Table II for
reconciliations of non-GAAP adjusted net income and adjusted
earnings per diluted share.
|
|
Summary of Fourth 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 fourth quarter
reported net income includes $2.2
million of after-tax expense versus $2.0 million of after-tax expense 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 fourth quarter reported net
income includes $0.1 million of
after-tax expense versus $0.2 million
of after-tax expense in the prior year.
- Business Restructuring and Asset Impairments: The
2023 fourth quarter reported net income includes $4.6 million of after-tax expense versus
$0.1 million of after-tax expense in
the prior year. The 2023 fourth quarter includes $2.3 million of after-tax restructuring expense
associated with workforce reductions and $2.3 million of non-cash after-tax expense
associated with asset impairments.
- Goodwill and Other Intangibles Impairment: The
2023 fourth quarter reported net income includes $1.4 million of non-cash after-tax
goodwill/intangible impairment expense associated with the
Company's Colombia and Lipid
Nutrition businesses.
- Environmental Remediation – Both the 2023 and 2022
fourth quarter reported net income include $0.4 million of after-tax expense.
Percentage Change in Net Sales
Net sales in the fourth quarter of 2023 decreased 15%
year-over-year primarily due to lower selling prices that were
mainly attributable to the pass-through of lower raw material
costs, less favorable product/customer mix and competitive
pressures. These lower selling prices were partially offset
by a 3% increase in global sales volume and the favorable impact of
foreign currency translation.
|
|
Three Months Ended
December 31, 2023
|
|
|
Twelve Months
Ended
December 31, 2023
|
|
Volume
|
|
|
3
|
%
|
|
|
(11)
|
%
|
Selling Price &
Mix
|
|
|
(21)
|
%
|
|
|
(6)
|
%
|
Foreign
Translation
|
|
|
3
|
%
|
|
|
1
|
%
|
Total
|
|
|
(15)
|
%
|
|
|
(16)
|
%
|
Segment Results
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
369,468
|
|
|
$
|
454,534
|
|
|
|
(19)
|
%
|
|
$
|
1,602,819
|
|
|
$
|
1,882,745
|
|
|
|
(15)
|
%
|
Polymers
|
|
$
|
147,271
|
|
|
$
|
148,309
|
|
|
|
(1)
|
%
|
|
$
|
642,471
|
|
|
$
|
789,080
|
|
|
|
(19)
|
%
|
Specialty
Products
|
|
$
|
15,392
|
|
|
$
|
24,333
|
|
|
|
(37)
|
%
|
|
$
|
80,478
|
|
|
$
|
101,445
|
|
|
|
(21)
|
%
|
Total Net
Sales
|
|
$
|
532,131
|
|
|
$
|
627,176
|
|
|
|
(15)
|
%
|
|
$
|
2,325,768
|
|
|
$
|
2,773,270
|
|
|
|
(16)
|
%
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in thousands, all
amounts pre-tax)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
14,830
|
|
|
$
|
21,752
|
|
|
|
(32)
|
%
|
|
$
|
72,399
|
|
|
$
|
162,746
|
|
|
|
(56)
|
%
|
Polymers
|
|
$
|
12,632
|
|
|
$
|
2,992
|
|
|
|
322
|
%
|
|
$
|
60,770
|
|
|
$
|
82,897
|
|
|
|
(27)
|
%
|
Specialty
Products
|
|
$
|
2,773
|
|
|
$
|
6,649
|
|
|
|
(58)
|
%
|
|
$
|
11,476
|
|
|
$
|
29,895
|
|
|
|
(62)
|
%
|
Total Segment
Operating Income
|
|
$
|
30,235
|
|
|
$
|
31,393
|
|
|
|
(4)
|
%
|
|
$
|
144,645
|
|
|
$
|
275,538
|
|
|
|
(48)
|
%
|
Corporate
Expenses
|
|
$
|
(30,005)
|
|
|
$
|
(19,702)
|
|
|
|
52
|
%
|
|
$
|
(86,032)
|
|
|
$
|
(68,202)
|
|
|
|
26
|
%
|
Consolidated
Operating Income
|
|
$
|
230
|
|
|
$
|
11,691
|
|
|
|
(98)
|
%
|
|
$
|
58,613
|
|
|
$
|
207,336
|
|
|
|
(72)
|
%
|
Total segment operating income for the fourth quarter of 2023
decreased $1.2 million, or 4%, versus
the prior year quarter. Total segment operating income for
full year 2023 was down $130.9
million, or 48%, versus the prior year.
- Surfactant net sales were $369.5
million for the quarter, a 19% decrease versus the prior
year. Selling prices were down 22% 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 increased 1% year-over-year primarily
due to strong double digit growth within the Personal Care and
Industrial Cleaning end markets, largely attributable to our recent
low 1,4 dioxane investments, and higher demand from our
Distribution partners. This growth was largely offset by
lower demand within the Agricultural end markets due to continued
customer and channel inventory destocking. Foreign currency
translation positively impacted net sales by 2%. Surfactant
operating income for the quarter decreased $6.9 million, or 32%, primarily due to lower unit
margins. The lower unit margins reflect less favorable
product/customer mix and increased competitive pricing pressures in
Latin America. 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 $147.3
million for the quarter, a 1% decrease versus the prior
year. Sales volume increased 10% in the quarter, including a
12% increase in global Rigid Polyols and higher demand within the
Specialty Polyols business. Rigid Polyols experienced strong
growth in all regions. Selling prices decreased 15%,
primarily due to the pass-through of lower raw material
costs. Foreign currency translation positively impacted net
sales by 4%. Polymer operating income increased $9.6 million, or 322%, primarily due to the 10%
increase in global sales volume.
- Specialty Product net sales were $15.4
million for the quarter, a 37% decrease versus the prior
year. Sales volume was down 27% versus the prior year while
operating income decreased $3.9
million, or 58%. The decline in operating income was
primarily attributable to lower unit margins and sales volume
within the MCT product line. The lower unit margins were
primarily due to high-cost raw material inventory and competitive
pricing pressures.
|
|
Three Months
Ended
December 31,
|
|
|
%
Change
|
|
|
Year Ended
December 31,
|
|
|
%
Change
|
|
($ in
millions)
|
|
2023
|
|
|
2022
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
31.5
|
|
|
$
|
36.6
|
|
|
|
(14)
|
%
|
|
$
|
136.8
|
|
|
$
|
218.0
|
|
|
|
(37)
|
%
|
Polymers
|
|
$
|
20.5
|
|
|
$
|
10.9
|
|
|
|
88
|
%
|
|
$
|
93.2
|
|
|
$
|
114.3
|
|
|
|
(18)
|
%
|
Specialty
Products
|
|
$
|
4.3
|
|
|
$
|
8.0
|
|
|
|
(46)
|
%
|
|
$
|
17.3
|
|
|
$
|
35.7
|
|
|
|
(52)
|
%
|
Unallocated Corporate
|
|
$
|
(30.5)
|
|
|
$
|
(18.9)
|
|
|
|
61
|
%
|
|
$
|
(81.5)
|
|
|
$
|
(74.8)
|
|
|
|
9
|
%
|
Consolidated
EBITDA
|
|
$
|
25.8
|
|
|
$
|
36.6
|
|
|
|
(30)
|
%
|
|
$
|
165.8
|
|
|
$
|
293.2
|
|
|
|
(43)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surfactants
|
|
$
|
31.6
|
|
|
$
|
36.8
|
|
|
|
(14)
|
%
|
|
$
|
136.7
|
|
|
$
|
217.8
|
|
|
|
(37)
|
%
|
Polymers
|
|
$
|
20.5
|
|
|
$
|
10.9
|
|
|
|
88
|
%
|
|
$
|
93.2
|
|
|
$
|
114.2
|
|
|
|
(18)
|
%
|
Specialty
Products
|
|
$
|
4.3
|
|
|
$
|
8.0
|
|
|
|
(46)
|
%
|
|
$
|
17.3
|
|
|
$
|
35.7
|
|
|
|
(52)
|
%
|
Unallocated Corporate
|
|
$
|
(18.9)
|
|
|
$
|
(15.7)
|
|
|
|
20
|
%
|
|
$
|
(67.2)
|
|
|
$
|
(66.2)
|
|
|
|
2
|
%
|
Consolidated
Adjusted EBITDA
|
|
$
|
37.5
|
|
|
$
|
40.0
|
|
|
|
(6)
|
%
|
|
$
|
180.0
|
|
|
$
|
301.5
|
|
|
|
(40)
|
%
|
- Consolidated EBITDA was $25.8
million for the quarter, a 30% decrease versus the prior
year. Adjusted EBITDA was $37.5
million, down 6% versus the prior year.
Corporate Expenses
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Total Corporate
Expenses
|
|
$
|
30,005
|
|
|
$
|
19,702
|
|
|
|
52
|
%
|
|
$
|
86,032
|
|
|
$
|
68,202
|
|
|
|
26
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Compensation Expense
(Income)
|
|
$
|
5,227
|
|
|
$
|
3,645
|
|
|
|
43
|
%
|
|
$
|
4,371
|
|
|
$
|
(9,393)
|
|
|
NM
|
|
Business
Restructuring and Asset
Impairment Expense
|
|
$
|
6,141
|
|
|
$
|
83
|
|
|
NM
|
|
|
$
|
11,968
|
|
|
$
|
308
|
|
|
NM
|
|
Goodwill
and Other Intangibles
Impairment Expense
|
|
$
|
2,038
|
|
|
$
|
-
|
|
|
NM
|
|
|
$
|
2,038
|
|
|
$
|
-
|
|
|
NM
|
|
Environmental Remediation
Expense
|
|
$
|
504
|
|
|
$
|
481
|
|
|
|
5
|
%
|
|
$
|
1,017
|
|
|
$
|
11,483
|
|
|
|
(91)
|
%
|
Adjusted Corporate
Expenses
|
|
$
|
16,095
|
|
|
$
|
15,493
|
|
|
|
4
|
%
|
|
$
|
66,638
|
|
|
$
|
65,804
|
|
|
|
1
|
%
|
|
* See Table III for
a discussion of deferred compensation plan
accounting.
|
- Corporate expenses, excluding deferred compensation, business
restructuring, asset impairments, goodwill/intangible impairments
and certain environmental remediation costs, increased $0.6 million, or 4% for the quarter. Higher
salaries, mostly due to the reallocation of some employee costs
from the business units to corporate during the first quarter of
2023, and higher consulting/legal expenses were largely offset by
lower incentive-based compensation expenses.
Income Taxes
The Company's full year effective tax rate was 16.9% in 2023
versus 22.0% in 2022. This year-over-year decrease was
primarily attributable to more favorable tax benefits derived from
stock-based compensation awards exercised or distributed in 2023
versus 2022 and R&D tax credits.
Shareholder Return
The Company paid $8.4 million of
dividends to shareholders in the fourth quarter of 2023 and
$32.9 million of dividends to
shareholders for the full year 2023. The Company has not
repurchased any Company stock during 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 increased by $4.7 million and cash increased by $24.3 million versus September 30, 2023. The increase in debt
primarily reflects borrowings against the Company's revolving
credit facility that were partially offset by scheduled debt
repayments. The Company's net debt level decreased
$19.6 million versus September 30, 2023 and the net debt ratio
decreased from 31% to 30% (Net Debt and Net Debt
Ratios are non-GAAP measures, reconciliations of which are
shown in the table below).
($ in
millions)
|
12/31/23
|
|
|
9/30/23
|
|
|
6/30/23
|
|
|
3/31/23
|
|
|
12/31/22
|
|
Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
$
|
654.1
|
|
|
$
|
649.4
|
|
|
$
|
682.6
|
|
|
$
|
711.0
|
|
|
$
|
587.1
|
|
Cash
|
|
129.8
|
|
|
|
105.5
|
|
|
|
133.9
|
|
|
|
127.0
|
|
|
|
173.8
|
|
Net Debt
|
$
|
524.3
|
|
|
$
|
543.9
|
|
|
$
|
548.7
|
|
|
$
|
584.0
|
|
|
$
|
413.3
|
|
Equity
|
|
1,216.5
|
|
|
|
1,202.8
|
|
|
|
1,215.1
|
|
|
|
1,189.9
|
|
|
|
1,166.1
|
|
Net Debt +
Equity
|
$
|
1,740.8
|
|
|
$
|
1,746.7
|
|
|
$
|
1,763.8
|
|
|
$
|
1,773.9
|
|
|
$
|
1,579.4
|
|
Net Debt / (Net Debt +
Equity)
|
|
30
|
%
|
|
|
31
|
%
|
|
|
31
|
%
|
|
|
33
|
%
|
|
|
26
|
%
|
The major working capital components were:
($ in
millions)
|
12/31/23
|
|
|
9/30/23
|
|
|
6/30/23
|
|
|
3/31/23
|
|
|
12/31/22
|
|
Net
Receivables
|
$
|
422.1
|
|
|
$
|
418.2
|
|
|
$
|
423.4
|
|
|
$
|
470.3
|
|
|
$
|
436.9
|
|
Inventories
|
|
265.6
|
|
|
|
284.5
|
|
|
|
340.0
|
|
|
|
368.4
|
|
|
|
402.5
|
|
Accounts
Payable
|
|
(233.0)
|
|
|
|
(242.6)
|
|
|
|
(287.6)
|
|
|
|
(289.1)
|
|
|
|
(375.7)
|
|
|
$
|
454.7
|
|
|
$
|
460.1
|
|
|
$
|
475.8
|
|
|
$
|
549.6
|
|
|
$
|
463.7
|
|
The Company had full year capital expenditures of $260.3 million in 2023 versus $301.6 million in the prior year. The
year-over-year decrease is primarily due to lower expenditures in
the U.S. for the advancement of the Company's new alkoxylation
facility in Pasadena, Texas.
The Company is executing the last phase of its Pasadena, Texas alkoxylation investment and
the facility is expected to start-up in the third quarter of
2024.
Outlook
"As we look toward 2024, we believe volumes and margins will
improve due to continued recovery in Rigid Polyols demand, growth
in Surfactant volumes driven by contracted business along with the
expected recovery of the agricultural business in the second half
of the year, and lower raw material costs across the business
versus 2023," said Scott Behrens,
President and Chief Executive Officer. "Our previously shared
cost reduction activities to deliver $50
million in pre-tax savings in 2024 will help offset
inflationary pressures, increased expenses associated with the
commissioning of our new Pasadena
alkoxylation assets and higher incentive-based compensation
expenses. These cost reduction activities are centered around
the workforce productivity actions already taken and on focused
programs to improve operational performance across our
manufacturing network. We believe continued market recovery,
executing our strategic initiatives, and the aforementioned cost
reductions, should position us to deliver adjusted EBITDA 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 fourth
quarter and full year results at 9:00 a.m.
ET (8:00 a.m. CT) on
February 20, 2024. 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
Twelve Months Ended December 31, 2023 and 2022
|
(Unaudited – in
000's, except per share data)
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net
Sales
|
|
$
|
532,131
|
|
|
$
|
627,176
|
|
|
$
|
2,325,768
|
|
|
$
|
2,773,270
|
|
Cost of
Sales
|
|
|
465,726
|
|
|
|
559,416
|
|
|
|
2,048,170
|
|
|
|
2,346,201
|
|
Gross
Profit
|
|
|
66,405
|
|
|
|
67,760
|
|
|
|
277,598
|
|
|
|
427,069
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
12,380
|
|
|
|
13,122
|
|
|
|
48,367
|
|
|
|
59,030
|
|
Administrative
|
|
|
25,070
|
|
|
|
22,678
|
|
|
|
93,202
|
|
|
|
102,177
|
|
Research, Development
and Technical
Services
|
|
|
15,319
|
|
|
|
16,541
|
|
|
|
59,039
|
|
|
|
66,633
|
|
Deferred Compensation
Expense (Income)
|
|
|
5,227
|
|
|
|
3,645
|
|
|
|
4,371
|
|
|
|
(9,393)
|
|
|
|
|
57,996
|
|
|
|
55,986
|
|
|
|
204,979
|
|
|
|
218,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and Other
Intangibles Impairment
|
|
|
2,038
|
|
|
|
-
|
|
|
|
2,038
|
|
|
|
978
|
|
Business Restructuring
and Assets
Impairment
|
|
|
6,141
|
|
|
|
83
|
|
|
|
11,968
|
|
|
|
308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
230
|
|
|
|
11,691
|
|
|
|
58,613
|
|
|
|
207,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
Net
|
|
|
(2,429)
|
|
|
|
(2,555)
|
|
|
|
(12,103)
|
|
|
|
(9,809)
|
|
Other, Net
|
|
|
(1,467)
|
|
|
|
175
|
|
|
|
1,881
|
|
|
|
(8,824)
|
|
|
|
|
(3,896)
|
|
|
|
(2,380)
|
|
|
|
(10,222)
|
|
|
|
(18,633)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Taxes
|
|
|
(3,666)
|
|
|
|
9,311
|
|
|
|
48,391
|
|
|
|
188,703
|
|
Provision for Income
Taxes
|
|
|
(2,473)
|
|
|
|
(1,523)
|
|
|
|
8,187
|
|
|
|
41,550
|
|
Net Income
(Loss)
|
|
|
(1,193)
|
|
|
|
10,834
|
|
|
|
40,204
|
|
|
|
147,153
|
|
Net Income (Loss)
Per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.05)
|
|
|
$
|
0.48
|
|
|
$
|
1.77
|
|
|
$
|
6.46
|
|
Diluted
|
|
$
|
(0.05)
|
|
|
$
|
0.47
|
|
|
$
|
1.75
|
|
|
$
|
6.38
|
|
Shares Used to
Compute Net Income Per
Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
22,794
|
|
|
|
22,685
|
|
|
|
22,777
|
|
|
|
22,781
|
|
Diluted
|
|
|
22,912
|
|
|
|
22,994
|
|
|
|
22,946
|
|
|
|
23,064
|
|
Table
II
|
|
Reconciliation of
Non-GAAP Net Income and Earnings per Diluted Share*
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
Net Income
Reported
|
|
$
|
(1,193)
|
|
|
$
|
(0.05)
|
|
|
$
|
10,834
|
|
|
$
|
0.47
|
|
|
$
|
40,204
|
|
|
$
|
1.75
|
|
|
$
|
147,153
|
|
|
$
|
6.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Compensation
(Income) Expense
|
|
$
|
2,243
|
|
|
$
|
0.10
|
|
|
$
|
2,000
|
|
|
$
|
0.09
|
|
|
$
|
(551)
|
|
|
$
|
(0.02)
|
|
|
$
|
(2,369)
|
|
|
$
|
(0.10)
|
|
Business Restructuring
and
Asset Impairment Expense
|
|
$
|
4,564
|
|
|
$
|
0.20
|
|
|
$
|
62
|
|
|
$
|
-
|
|
|
$
|
8,929
|
|
|
$
|
0.39
|
|
|
$
|
231
|
|
|
$
|
0.01
|
|
Goodwill and Other
Intangibles
Impairment Expense
|
|
$
|
1,422
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,422
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Cash-Settled SARs
(Income)
Expense
|
|
$
|
71
|
|
|
$
|
0.00
|
|
|
$
|
194
|
|
|
$
|
0.01
|
|
|
$
|
(74)
|
|
|
$
|
-
|
|
|
$
|
(270)
|
|
|
$
|
(0.01)
|
|
Environmental
Remediation
Expense
|
|
$
|
378
|
|
|
$
|
0.02
|
|
|
$
|
366
|
|
|
$
|
0.02
|
|
|
$
|
762
|
|
|
$
|
0.03
|
|
|
$
|
8,728
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
7,485
|
|
|
$
|
0.33
|
|
|
$
|
13,456
|
|
|
$
|
0.59
|
|
|
$
|
50,692
|
|
|
$
|
2.21
|
|
|
$
|
153,473
|
|
|
$
|
6.65
|
|
* 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
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
|
2023
|
|
|
EPS
|
|
|
2022
|
|
|
EPS
|
|
Pre-Tax
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Compensation
(Income) Expense
|
|
$
|
2,991
|
|
|
|
|
|
$
|
2,631
|
|
|
|
|
|
$
|
(735)
|
|
|
|
|
|
$
|
(3,117)
|
|
|
|
|
Business Restructuring
and
Asset Impairment Expense
|
|
$
|
6,141
|
|
|
|
|
|
$
|
83
|
|
|
|
|
|
$
|
11,968
|
|
|
|
|
|
$
|
308
|
|
|
|
|
Goodwill and Other
Intangibles
Impairment Expense
|
|
$
|
2,038
|
|
|
|
|
|
$
|
-
|
|
|
|
|
|
$
|
2,038
|
|
|
|
|
|
$
|
-
|
|
|
|
|
Cash-Settled SARs
(Income)
Expense
|
|
$
|
95
|
|
|
|
|
|
$
|
255
|
|
|
|
|
|
$
|
(98)
|
|
|
|
|
|
$
|
(354)
|
|
|
|
|
Environmental
Remediation
Expense
|
|
$
|
504
|
|
|
|
|
|
$
|
481
|
|
|
|
|
|
$
|
1,017
|
|
|
|
|
|
$
|
11,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Pre-Tax Adjustments
|
|
$
|
11,769
|
|
|
|
|
|
$
|
3,450
|
|
|
|
|
|
$
|
14,190
|
|
|
|
|
|
$
|
8,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Tax
Effect
on Adjustments
|
|
$
|
(3,091)
|
|
|
|
|
|
$
|
(828)
|
|
|
|
|
|
$
|
(3,702)
|
|
|
|
|
|
$
|
(2,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-Tax
Adjustments
|
|
$
|
8,678
|
|
|
$
|
0.38
|
|
|
$
|
2,622
|
|
|
$
|
0.12
|
|
|
$
|
10,488
|
|
|
$
|
0.46
|
|
|
$
|
6,320
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
III
|
|
Deferred
Compensation Plans
|
|
The full effect of the
deferred compensation plans on quarterly pre-tax income was $3.0
million of expense versus $2.6 million of expense in the prior
year. The year-to-date impact was $0.7 million of income versus
$3.1 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
|
|
$
|
94.55
|
|
|
$
|
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
December 31,
|
|
|
Twelve Months
Ended
December 31,
|
|
($ in
thousands)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Deferred
Compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Expense)
|
|
$
|
(5,227)
|
|
|
$
|
(3,645)
|
|
|
$
|
(4,371)
|
|
|
$
|
9,393
|
|
Other, net – Mutual
Fund Gain (Loss)
|
|
|
2,236
|
|
|
|
1,014
|
|
|
|
5,106
|
|
|
|
(6,276)
|
|
Total
Pre-Tax
|
|
$
|
(2,991)
|
|
|
$
|
(2,631)
|
|
|
$
|
735
|
|
|
$
|
3,117
|
|
Total
After-Tax
|
|
$
|
(2,243)
|
|
|
$
|
(2,000)
|
|
|
$
|
551
|
|
|
$
|
2,369
|
|
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 twelve month periods ending December 31,
2023 as compared to 2022:
|
|
|
($ in
millions)
|
|
Three Months
Ended
December 31,
|
|
|
Decrease
|
|
|
Change
Due to
Foreign
Currency
Translation
|
|
|
Twelve Months
Ended
December 31,
|
|
|
Decrease
|
|
|
Change
Due to
Foreign
Currency
Translation
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
532.1
|
|
|
$
|
627.2
|
|
|
$
|
(95.1)
|
|
|
$
|
16.0
|
|
|
$
|
2,325.8
|
|
|
$
|
2,773.3
|
|
|
$
|
(447.5)
|
|
|
$
|
27.1
|
|
Gross Profit
|
|
|
66.4
|
|
|
|
67.8
|
|
|
$
|
(1.4)
|
|
|
|
1.4
|
|
|
|
277.6
|
|
|
|
427.1
|
|
|
$
|
(149.5)
|
|
|
|
2.1
|
|
Operating
Income
|
|
|
0.2
|
|
|
|
11.7
|
|
|
$
|
(11.5)
|
|
|
|
0.6
|
|
|
|
58.6
|
|
|
|
207.3
|
|
|
$
|
(148.7)
|
|
|
|
0.6
|
|
Pretax
Income
|
|
|
(3.7)
|
|
|
|
9.3
|
|
|
$
|
(13.0)
|
|
|
|
0.2
|
|
|
|
48.4
|
|
|
|
188.7
|
|
|
$
|
(140.3)
|
|
|
|
0.2
|
|
Table
V
|
|
Stepan
Company
|
Consolidated Balance
Sheets
|
December 31,
2023 and December 31, 2022
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
$
|
851,883
|
|
|
$
|
1,044,802
|
|
Property, Plant &
Equipment, Net
|
|
|
1,206,665
|
|
|
|
1,073,297
|
|
Other Assets
|
|
|
304,806
|
|
|
|
315,073
|
|
Total Assets
|
|
$
|
2,363,354
|
|
|
$
|
2,433,172
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
$
|
607,870
|
|
|
$
|
670,649
|
|
Deferred Income
Taxes
|
|
|
10,373
|
|
|
|
10,179
|
|
Long-term
Debt
|
|
|
401,248
|
|
|
|
455,029
|
|
Other Non-current
Liabilities
|
|
|
127,373
|
|
|
|
131,250
|
|
Total Stepan Company
Stockholders' Equity
|
|
|
1,216,490
|
|
|
|
1,166,065
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
2,363,354
|
|
|
$
|
2,433,172
|
|
Table
VI
|
|
Reconciliations of
Non-GAAP EBITDA and Adjusted EBITDA to Operating
Income
|
|
|
|
Three Months
Ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
14.8
|
|
|
$
|
12.6
|
|
|
$
|
2.8
|
|
|
$
|
(30.0)
|
|
|
$
|
0.2
|
|
Depreciation and Amortization
|
|
$
|
16.7
|
|
|
$
|
7.9
|
|
|
$
|
1.5
|
|
|
$
|
1.0
|
|
|
$
|
27.1
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(1.5)
|
|
|
$
|
(1.5)
|
|
EBITDA
|
|
$
|
31.5
|
|
|
$
|
20.5
|
|
|
$
|
4.3
|
|
|
$
|
(30.5)
|
|
|
$
|
25.8
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3.0
|
|
|
$
|
3.0
|
|
Cash
Settled SARs
|
|
$
|
0.1
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.1
|
|
Goodwill
and Other Intangibles
Impairment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2.0
|
|
|
$
|
2.0
|
|
Business
Restructuring/
Asset Impairment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
6.1
|
|
|
$
|
6.1
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Adjusted
EBITDA
|
|
$
|
31.6
|
|
|
$
|
20.5
|
|
|
$
|
4.3
|
|
|
$
|
(18.9)
|
|
|
$
|
37.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
21.8
|
|
|
$
|
3.0
|
|
|
$
|
6.6
|
|
|
$
|
(19.7)
|
|
|
$
|
11.7
|
|
Depreciation and Amortization
|
|
$
|
14.8
|
|
|
$
|
7.9
|
|
|
$
|
1.4
|
|
|
$
|
0.6
|
|
|
$
|
24.7
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
EBITDA
|
|
$
|
36.6
|
|
|
$
|
10.9
|
|
|
$
|
8.0
|
|
|
$
|
(18.9)
|
|
|
$
|
36.6
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2.6
|
|
|
$
|
2.6
|
|
Cash
Settled SARs
|
|
$
|
0.2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.2
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Adjusted
EBITDA
|
|
$
|
36.8
|
|
|
$
|
10.9
|
|
|
$
|
8.0
|
|
|
$
|
(15.7)
|
|
|
$
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
72.4
|
|
|
$
|
60.8
|
|
|
$
|
11.5
|
|
|
$
|
(86.0)
|
|
|
$
|
58.6
|
|
Depreciation and Amortization
|
|
$
|
64.4
|
|
|
$
|
32.4
|
|
|
$
|
5.8
|
|
|
$
|
2.7
|
|
|
$
|
105.3
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
EBITDA
|
|
$
|
136.8
|
|
|
$
|
93.2
|
|
|
$
|
17.3
|
|
|
$
|
(81.5)
|
|
|
$
|
165.8
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.7)
|
|
|
$
|
(0.7)
|
|
Cash
Settled SARs
|
|
$
|
(0.1)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.1)
|
|
Goodwill
and Other Intangibles
Impairment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2.0
|
|
|
$
|
2.0
|
|
Business
Restructuring/
Asset Impairment
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
12.0
|
|
|
$
|
12.0
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
Adjusted
EBITDA
|
|
$
|
136.7
|
|
|
$
|
93.2
|
|
|
$
|
17.3
|
|
|
$
|
(67.2)
|
|
|
$
|
180.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Surfactants
|
|
|
Polymers
|
|
|
Specialty
Products
|
|
|
Unallocated
Corporate
|
|
|
Consolidated
|
|
Operating
Income
|
|
$
|
162.7
|
|
|
$
|
82.9
|
|
|
$
|
29.9
|
|
|
$
|
(68.2)
|
|
|
$
|
207.3
|
|
Depreciation and Amortization
|
|
$
|
55.3
|
|
|
$
|
31.4
|
|
|
$
|
5.8
|
|
|
$
|
2.2
|
|
|
$
|
94.7
|
|
Other, Net
Income (Expense)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(8.8)
|
|
|
$
|
(8.8)
|
|
EBITDA
|
|
$
|
218.0
|
|
|
$
|
114.3
|
|
|
$
|
35.7
|
|
|
$
|
(74.8)
|
|
|
$
|
293.2
|
|
Deferred
Compensation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(3.1)
|
|
|
$
|
(3.1)
|
|
Cash
Settled SARs
|
|
$
|
(0.2)
|
|
|
$
|
(0.1)
|
|
|
$
|
-
|
|
|
$
|
(0.1)
|
|
|
$
|
(0.4)
|
|
Business
Restructuring
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
Environmental Remediation
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
11.5
|
|
|
$
|
11.5
|
|
Adjusted
EBITDA
|
|
$
|
217.8
|
|
|
$
|
114.2
|
|
|
$
|
35.7
|
|
|
$
|
(66.2)
|
|
|
$
|
301.5
|
|
View original
content:https://www.prnewswire.com/news-releases/stepan-reports-fourth-quarter-and-full-year-2023-results-302065799.html
SOURCE Stepan Company