Q3 2024 NewMarket Corp Earnings Call
Speaker Change: The
Speaker Change: Good day and welcome to the new Market Corporation scheduled conference call and webcast to review the third quarter 2024 financial results. At this time all participants are on a list and only mode. I would now like to turn the call over to your host, Bill Skrobacz. Fuller Shores.
Bill Skrobacz: Thank you Kelly and thanks to everyone for joining me this afternoon.
Bill Skrobacz: As a reminder, some of the statements may during this conference call may be forward-looking.
Speaker Change: Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10K.
Speaker Change: During this call, I will also discuss the non-gap financial measures included in our earnings release. The earnings release which can be found on our website includes a reconciliation of the non-gap financial measures to the comparable gap financial measures.
Speaker Change: We filed our 10-Q this morning. It contains significantly more details on the operations and performance of our company. Please take time to review it. I will be referring to the data that was included in last night's earnings release.
Speaker Change: Net income for the third quarter of 2024 was $139 per share compared to net income of 111 million or $11.60 per share for the same period last year.
Speaker Change: Petroleum has have sailed for the third quarter of 2024, where $663 million compared to $664 million for the same period in 2023.
Speaker Change: Petroleum as is operating profits for the third quarter of 2024 was 157 million compared to 140 million for the third quarter of 2023.
Speaker Change: The increase in petroleum additive operating profit was mainly due to lower raw material and operating costs, partially offset by lower selling prices.
Speaker Change: We remain pleased with the strong performance of our petroleum additive business during the first nine months of 2024. We continue to see the favorable results of our ongoing focus on margin management.
Speaker Change: Managing our operating costs, our inventory levels, and our portfolio profitability will remain priorities throughout 2024.
Speaker Change: We completed the acquisition of American Pacific Corp, Ampac on January 16, 2024. We report the financial results of our Ampac business since the date of acquisition in our specialty material segment.
Speaker Change: Specialty Materials sales were $59 million for the third quarter of 2024 and 114 million for the first nine months of 2024.
Speaker Change: Specialty Materials Operating Profits for the third quarter and first nine months of 2024 were $16 million.
Speaker Change: The specialty materials third quarter and first nine months, 20, 24 results reflect the sale of ampact finished goods inventory that we acquired at closing.
Speaker Change: The acquired inventory was recorded at Fair Value on the acquisition date and was sold during the first nine months of 2024, generating no margin.
Speaker Change: We expect to see substantial variation in quarterly results for the impact, due to the nature of its business, and we anticipate full year 2024 results to be consistent with our pre-acquisition expectations.
Speaker Change: Our operations produce strong cash flows during the quarter.
Speaker Change: We pay dividends of 24 million and funded capital expenditures of 14 million. Since the Ampac Acquisition, we have made net payments of $259 million on our revolving credit facility.
Speaker Change: As of September 30, 2024, our net debt to EBITDA ratio was 1.4, which is slightly below our target operating range of 1.5 to 2 times.
Speaker Change: For 2024, we expect to see capital expenditures in the 50 to 70 million dollars.
Speaker Change: We want to thank our dedicated employees for their hard work in welcoming and integrating impact into our family of companies. Our team continues to make decisions to promote long-term value for our shareholders and customers and remain focused on our long-term objectives.
Speaker Change: We believe the fundamentals of how we run our business. A long-term view, safety first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability will continue to be beneficial for all our stakeholder.
Speaker Change: Thank you for joining me for the call today. Kelly, that concludes our plan comments. We are available for questions via email or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.