NASDAQ$IOSP

Innospec Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Innospec reported record quarterly sales driven by strong performance in Performance Chemicals and Fuel Specialties.

Innospec Inc. reported a strong fourth quarter with total revenues of $413.2 million, a 33% increase compared to the same period last year. Net income was $23.9 million, or $0.96 per diluted share. Adjusted non-GAAP EPS was $1.30. The company generated $68.8 million in cash from operating activities and closed the year with a net cash position of $141.7 million.

  • Record quarterly and full year sales in Performance Chemicals and Fuel Specialties.
  • Continued sequential sales and operating income growth in Oilfield Services.
  • $68.8 million net cash generated in the quarter from operations; Net cash position improves to $141.7 million.
  • New share repurchase program up to $50.0 million.

Headline financials

Total Revenue

$413M

Previous: $311M+32.9%
EPS (adj)

$1.30

Previous: $1.27+2.4%
Cash from Operations

$68.8M

Previous: $58.2M+18.2%
Net Income

$23.9M

Previous: $22.6M+5.8%
Operating Income

$35.5M

Previous: $29.4M+20.7%
Gross Profit

$113M

Previous: $91M+24.1%
Cash & Equivalents

$142M

Previous: $105M+34.7%
Total Assets

$1.57B

Previous: $1.4B+12.4%
Stock-Based Comp

-$200K

Previous: $1.4M-114.3%

Revenue & EPS history

Innospec · Revenue · Quarterly

$413M

Q4 2021+32.9%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Innospec · $275M total across 2 segments · Q4 2021

  • Fuel Specialties
    $180M+29.8%
  • Oilfield Services
    $95.3M+64.6%

Forward guidance

Innospec believes that their excellent fourth quarter performance leaves them well positioned for continued improvement in 2022. They exit the year with record quarterly sales and an outlook that they feel is favorable to further sales growth and margin expansion in all their businesses.

Tailwinds

  • Well positioned for continued operating income growth and margin expansion in all businesses.
  • Executing on plan for approximately $70 million in organic growth investments through 2023 to meet existing customer demand.
  • Expect high single-digit annual volume growth over the medium term along with continued margin expansion from further product mix and operating leverage improvements.
  • Expect gross margins to return to target range as jet fuel demand continues to recover and cost inflation moderates.
  • Opportunities for significant additional operating leverage, which we anticipate will lead to operating income growth and margin expansion in the coming quarters.

Headwinds

  • Expect continuation of supply chain and inflationary challenges.
  • Gross margins ran below target due to delay in jet fuel demand recovery.
  • Lag in contract formula price increases which trail raw material cost inflation.
  • COVID variants lingering impact on demand.
  • Managing through tight supply-chain, labor and inflationary challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+1.5%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+14.7%

Q3 2024

Best reaction

-8.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%-0.8%+1.0%
Q4 2025-0.0%-8.3%-23.5%
Q3 2025+2.4%+3.9%+3.8%
Q1 2025-3.2%-6.0%-7.8%
Q4 2024-7.0%-7.2%-12.6%
Q3 2024+14.7%+11.7%+7.6%
Q2 2024-8.5%-8.2%-6.6%
Q1 2024+4.9%+5.0%+0.9%
Q4 2023-0.5%+3.0%+1.5%
Q3 2023+0.7%+0.8%+9.8%
Q2 2023+0.5%+1.3%-2.3%
Q1 2023+0.6%-1.3%-0.1%
Q4 2022-5.6%-5.1%-14.0%
Q3 2022-1.1%+5.8%+6.8%
Q2 2022-4.2%-7.6%-12.1%
Q1 2022+4.4%+5.4%+10.6%
Q4 2021+8.1%+8.4%+3.5%
Q3 2021+2.2%+3.3%-7.6%
Q2 2021-2.5%+1.0%+4.4%
Q1 2021+1.6%+4.2%+3.5%
Q4 2020-2.4%-0.2%+4.8%
Q3 2020+2.4%+0.6%+23.4%
Q2 2020-0.2%+2.9%-4.1%
Q1 2020+2.3%+5.2%+16.5%
Q4 2019-0.2%-8.4%-37.7%
Q3 2019+9.2%+8.8%+8.9%
Q2 2019+0.8%+2.2%+0.9%
Q1 2019+0.4%-0.3%-2.5%
Q4 2018+5.8%+9.6%+12.3%
Q3 2018+9.9%+8.3%-2.1%
Q2 2018-3.3%-4.5%-2.0%
Q1 2018+2.8%+3.4%+9.9%
Q4 2017+0.8%+2.6%+4.5%
Q3 2017+9.7%+3.6%+10.2%
Q2 2017-4.7%-9.3%-13.3%
Q1 2017-0.8%-2.6%+3.8%
Q4 2016+5.7%+1.9%-9.8%
Q3 2016-6.7%-5.5%+10.2%
Q2 2016+6.6%+16.1%+17.1%
Q1 2016+0.1%
Q4 2015-7.9%
Q3 2015+4.1%
Q2 2015+4.3%
Q1 2015-0.1%
Q4 2014+3.7%
Q3 2014+8.0%
Q2 2014+2.3%
Q1 2014-1.4%
Q4 2013+5.4%
Q3 2013-2.6%
Q2 2013+0.4%
Q1 2013-3.6%
Q4 2012+0.2%
Q3 2012+4.9%
Q4 2011-3.0%
Q2 2012-4.6%
Q1 2011+7.5%
Q1 2012+8.5%
Q4 2009-2.5%
Q3 2010-2.5%
Q3 2011+7.4%
Q2 2011+4.4%
Q2 2010+4.4%
Q4 2010+4.4%
Q1 2010+7.8%

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