Results driven by significantly higher volumes and prices in Engineered Polymers and Industrial Specialties, partially offset by the negative impact on Performance Materials of depressed automotive production due to the global microchip shortage
FINANCIAL HIGHLIGHTS
(VS PRIOR YEAR QUARTER)
Net sales
$376.8M
q
13.6%
Adj. EBITDA 1
$119.5M
q
6.3%
Adj. EBITDA margin 1
31.7%
q
680 bps
Adj. earnings 1
$64.4M
q
13.2%
Diluted adj.
$1.62
q
earnings per share 1
9.5%
Free cash flow 1
$74.6M
q
1.5%
BUSINESS SEGMENT PERFORMANCE
(VS PRIOR YEAR QUARTER)
Performance
Performance
Chemicals
Materials
Revenue
$258.7M
$118.1M
Segment
$63.1M
$56.4M
EBITDA
Segment
24.4%
47.8%
EBITDA margin
OPERATIONAL HIGHLIGHTS
Performance Chemicals: Engineered Polymers
sales up over 100% versus the prior year quarter
due to increased global volume in all applications,
particularly automotive and industrial markets;
sales in Industrial Specialties applications rose
more than 40% due to strengthening adhesives,
dispersants, lubricants and oilfield markets;
Pavement Technologies sales were slightly ahead
Performance Materials: Global microchip shortage
continues to depress automotive production,
negatively affecting our activated carbon product
sales; Performance Materials sales and adjusted
EBITDA down compared to 2020's third quarter
when demand and production rebounded sharply
from pandemic lows
$
Operating cash flow of $100 million drove free cash
flow of $75 million
Maintained net debt to adjusted EBITDA ratio of 2.1x
REVISED GUIDANCE
$1.320B - $1.360B
$405M - $420M
Sales
Adjusted EBITDA 1
"Our third quarter results were driven by markedly higher Performance Chemicals volumes in Engineered Polymers and Industrial Specialties and were supported by price increases across the segment. The prolonged impact of the global microchip shortage continues to depress automotive production, which negatively impacted our activated carbon product sales. While we expect an ongoing shortage of microchips, continued logistics headwinds and raw materials and energy inflation to be challenges throughout the rest of the year, we believe strongly in our team's proven ability to operate efficiently and effectively."
JOHN FORTSON, PRESIDENT AND CEO
1 Represents a non-GAAP financial measure, please refer to quarterly earning presentations for Ingevity's use of non-GAAP financial measures, definitions of these financial measures as well as the reconciliation to the nearest GAAP financial measure.
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Ingevity Corporation published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 10:32:17 UTC.
Ingevity Corporation is engaged in developing, marketing, and bringing to market solutions that are renewably sourced. The Company operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. Performance Materials segment engineers, manufactures, and sells hardwood-based, chemically activated carbon products, which are produced through a technical and specialized process primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats. Performance Chemicals segment is comprised of two product lines: road technologies and industrial specialties. Its products are utilized in pavement construction, preservation, reconstruction and recycling, agrochemical dispersants, paper chemicals and other diverse industrial uses. Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices.
INGEVITY CORPORATION 
