| Schedule of Net Sales and Adjusted EBITDA of Reportable Segments |
The following table presents net sales and Adjusted EBITDA for each reportable segment for the three months and nine months ended September 30, 2021 and 2020 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Segment Net Sales by Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
Fire safety |
|
$ |
172,445 |
|
|
$ |
151,083 |
|
|
$ |
237,256 |
|
|
$ |
213,916 |
|
Oil additives |
|
|
22,969 |
|
|
|
23,176 |
|
|
|
79,204 |
|
|
|
69,842 |
|
Total net sales as reported |
|
$ |
195,414 |
|
|
$ |
174,259 |
|
|
$ |
316,460 |
|
|
$ |
283,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Fire Safety |
|
$ |
97,854 |
|
|
$ |
86,640 |
|
|
$ |
116,680 |
|
|
$ |
102,805 |
|
Oil additives |
|
|
2,496 |
|
|
|
5,591 |
|
|
|
17,919 |
|
|
|
17,236 |
|
Total adjusted EBITDA |
|
$ |
100,350 |
|
|
$ |
92,231 |
|
|
$ |
134,599 |
|
|
$ |
120,041 |
|
See below for a reconciliation of total reportable segment profit (loss), to consolidated net income (loss) before income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2021 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
82,413 |
|
|
$ |
(2,002 |
) |
|
$ |
80,411 |
|
Other income (expense) |
|
|
(8,415 |
) |
|
|
(1,350 |
) |
|
|
(9,765 |
) |
Net income (loss) before income taxes |
|
$ |
73,998 |
|
|
$ |
(3,352 |
) |
|
$ |
70,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2020 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
74,818 |
|
|
$ |
1,136 |
|
|
$ |
75,954 |
|
Other income (expense) |
|
|
(7,879 |
) |
|
|
1,521 |
|
|
|
(6,358 |
) |
Net income (loss) before income taxes |
|
$ |
66,939 |
|
|
$ |
2,657 |
|
|
$ |
69,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2021 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
68,568 |
|
|
$ |
4,569 |
|
|
$ |
73,137 |
|
Other income (expense) |
|
|
(26,130 |
) |
|
|
(4,224 |
) |
|
|
(30,354 |
) |
Net income (loss) before income taxes |
|
$ |
42,438 |
|
|
$ |
345 |
|
|
$ |
42,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2020 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
67,711 |
|
|
$ |
4,449 |
|
|
$ |
72,160 |
|
Other income (expense) |
|
|
(30,178 |
) |
|
|
(197 |
) |
|
|
(30,375 |
) |
Net income (loss) before income taxes |
|
$ |
37,533 |
|
|
$ |
4,252 |
|
|
$ |
41,785 |
|
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from net income (loss), the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2021 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
Net income (loss) |
|
$ |
53,819 |
|
|
$ |
(1,810 |
) |
|
$ |
52,009 |
|
Income tax (benefit) expense |
|
|
20,179 |
|
|
|
(1,542 |
) |
|
|
18,637 |
|
(Loss) income before income taxes |
|
|
73,998 |
|
|
|
(3,352 |
) |
|
|
70,646 |
|
Depreciation and amortization |
|
|
10,754 |
|
|
|
4,458 |
|
|
|
15,212 |
|
Interest and financing expense |
|
|
7,795 |
|
|
|
270 |
|
|
|
8,065 |
|
Restructuring charges |
|
|
3,855 |
|
|
— |
|
|
|
3,855 |
|
Loss on contingent earnout |
|
— |
|
|
— |
|
|
|
— |
|
Management fees |
|
|
313 |
|
|
— |
|
|
|
313 |
|
Deferred future payments |
|
|
625 |
|
|
— |
|
|
|
625 |
|
Unrealized foreign currency loss |
|
|
514 |
|
|
|
1,120 |
|
|
|
1,634 |
|
Adjusted EBITDA |
|
$ |
97,854 |
|
|
$ |
2,496 |
|
|
$ |
100,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2020 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
Net income (loss) |
|
$ |
51,453 |
|
|
$ |
1,177 |
|
|
$ |
52,630 |
|
Income tax expense |
|
|
15,486 |
|
|
|
1,480 |
|
|
|
16,966 |
|
Income before income taxes |
|
|
66,939 |
|
|
|
2,657 |
|
|
|
69,596 |
|
Depreciation and amortization |
|
|
10,263 |
|
|
|
4,329 |
|
|
|
14,592 |
|
Interest and financing expense |
|
|
8,363 |
|
|
|
881 |
|
|
|
9,244 |
|
Restructuring charges |
|
|
418 |
|
|
|
27 |
|
|
|
445 |
|
Management fees |
|
|
344 |
|
|
— |
|
|
|
344 |
|
Deferred future payments |
|
|
625 |
|
|
— |
|
|
|
625 |
|
Unrealized foreign currency gain |
|
|
(312 |
) |
|
|
(2,303 |
) |
|
|
(2,615 |
) |
Adjusted EBITDA |
|
$ |
86,640 |
|
|
$ |
5,591 |
|
|
$ |
92,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2021 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
Net income (loss) |
|
$ |
30,402 |
|
|
$ |
(770 |
) |
|
$ |
29,632 |
|
Income tax expense |
|
|
12,036 |
|
|
|
1,115 |
|
|
|
13,151 |
|
Income before income taxes |
|
|
42,438 |
|
|
|
345 |
|
|
|
42,783 |
|
Depreciation and amortization |
|
|
32,283 |
|
|
|
13,310 |
|
|
|
45,593 |
|
Interest and financing expense |
|
|
22,368 |
|
|
|
1,583 |
|
|
|
23,951 |
|
Restructuring charges |
|
|
12,805 |
|
|
— |
|
|
|
12,805 |
|
Loss on contingent earnout |
|
|
2,763 |
|
|
— |
|
|
|
2,763 |
|
Management fees |
|
|
937 |
|
|
— |
|
|
|
937 |
|
Deferred future payments |
|
|
1,875 |
|
|
— |
|
|
|
1,875 |
|
Unrealized foreign currency loss |
|
|
1,211 |
|
|
|
2,681 |
|
|
|
3,892 |
|
Adjusted EBITDA |
|
$ |
116,680 |
|
|
$ |
17,919 |
|
|
$ |
134,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2020 |
|
|
|
Fire Safety |
|
|
Oil Additives |
|
|
Total |
|
Net income |
|
$ |
27,771 |
|
|
$ |
2,772 |
|
|
$ |
30,543 |
|
Income tax expense |
|
|
9,762 |
|
|
|
1,480 |
|
|
|
11,242 |
|
Income before income taxes |
|
|
37,533 |
|
|
|
4,252 |
|
|
|
41,785 |
|
Depreciation and amortization |
|
|
30,673 |
|
|
|
12,698 |
|
|
|
43,371 |
|
Interest and financing expense |
|
|
30,982 |
|
|
|
2,512 |
|
|
|
33,494 |
|
Restructuring charges |
|
|
651 |
|
|
|
39 |
|
|
|
690 |
|
Management fees |
|
|
969 |
|
|
— |
|
|
|
969 |
|
Deferred future payments |
|
|
2,500 |
|
|
— |
|
|
|
2,500 |
|
Unrealized foreign currency gain |
|
|
(503 |
) |
|
|
(2,265 |
) |
|
|
(2,768 |
) |
Adjusted EBITDA |
|
$ |
102,805 |
|
|
$ |
17,236 |
|
|
$ |
120,041 |
|
|