NYSE$NGVT

Ingevity Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Ingevity's first quarter net sales increased, with significant growth in net income and adjusted EBITDA.

Ingevity reported a strong first quarter with net sales up 4.1% and a significant increase in net income and adjusted EBITDA. The company's performance was driven by growth in Performance Materials, although the coronavirus had some impact. Ingevity is revising fiscal year 2020 guidance due to uncertainties related to COVID-19.

  • Net sales increased by 4.1% to $288.2 million compared to the prior year quarter.
  • Net income rose by 99.6% to $45.3 million, with diluted earnings per share at $1.08.
  • Adjusted EBITDA increased by 10.4% to $92.2 million, with an adjusted EBITDA margin of 32.0%.
  • Free cash flow was $40.7 million, a significant increase compared to the prior year quarter.

Headline financials

Total Revenue

$288M

Previous: $277M+4.1%
EPS (adj)

$1.12

Previous: $0.99+13.1%
Total Adj EBITDA Margin

32.0%

Previous: 30.2%+6.0%
Free Cash Flow

$45.3M

Previous: $22.7M+99.6%
Net Income

$45.3M

Previous: $22.7M+99.6%
Operating Income

$92.2M

Previous: $83.5M+10.4%
Gross Profit

$115M

Previous: $97.1M+18.0%
Cash & Equivalents

$303M

Previous: $38.4M+688.3%
Total Assets

$2.35B

Previous: $2.11B+11.7%

Revenue & EPS history

Ingevity · Revenue · Quarterly

$288M

Q1 2020+4.1%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Ingevity · $288M total across 2 segments · Q1 2020

  • Performance Chemicals
    $167M-0.4%
  • Performance Materials
    $121M+11.0%

Forward guidance

Ingevity revised and broadened its fiscal year 2020 guidance to sales between $1.10 billion and $1.20 billion and adjusted EBITDA between $310 million and $350 million. The company expects that second quarter 2020 revenue will be down 25% to 30% versus the prior year’s quarter and adjusted EBITDA will be down 35% to 40% versus the prior year.

Tailwinds

  • Working from a position of financial strength.
  • Working to control what we can control in a tumultuous environment.
  • Largely reliant either way on conditions in our key end-use applications.
  • Prepared and in a solid position to bounce back with auto OEMs.
  • Prepared and in a solid position to bounce back with customers in other key industries important to Ingevity.

Headwinds

  • Uncertainties related to COVID-19.
  • Second quarter 2020 revenue will be down 25% to 30% versus the prior year’s quarter.
  • Second quarter 2020 adjusted EBITDA will be down 35% to 40% versus the prior year.
  • Largely reliant either way on conditions in our key end-use applications, particularly the automotive industry.
  • Conditions in our key end-use applications, particularly the automotive industry recover.

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 Q1 2020

Historical avgQ1 2020

+1.9%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

58%

26 / 45 earnings

Positive

+22.0%

Q1 2020

Best reaction

-15.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-8.2%-15.3%
Q4 2025+0.3%+1.5%+1.4%
Q3 2025-15.8%-9.1%-2.8%
Q1 2025+0.9%+9.8%+7.3%
Q4 2024+5.3%+0.6%-7.5%
Q3 2024+16.5%+17.5%+33.5%
Q2 2024-7.5%-23.2%-14.3%
Q1 2024+7.2%+5.3%-4.5%
Q4 2023+3.1%+4.7%+3.1%
Q3 2023+5.0%-0.5%+1.1%
Q2 2023-11.2%-14.0%-12.4%
Q1 2023-8.4%-15.9%-26.3%
Q4 2022-6.8%-7.8%-21.1%
Q3 2022+3.6%+8.2%+14.1%
Q2 2022+5.0%+3.0%+4.2%
Q1 2022+9.6%+9.2%+19.7%
Q4 2021+0.9%+4.2%-0.5%
Q3 2021-0.6%-0.5%-5.6%
Q2 2021+5.4%+1.4%-1.0%
Q1 2021+4.6%+10.2%+10.4%
Q4 2020-6.6%-4.6%+6.3%
Q3 2020-1.4%+0.1%+8.9%
Q2 2020-2.1%+1.9%+1.3%
Q1 2020+22.0%+12.2%+23.8%
Q4 2019-2.9%+2.5%-24.5%
Q3 2019+1.7%+2.8%+4.6%
Q2 2019-1.2%-2.9%-26.9%
Q1 2019-10.9%-9.8%-23.7%
Q4 2018+9.8%+13.2%+3.0%
Q3 2018+2.3%-0.6%+9.8%
Q2 2018+11.3%+10.0%+14.5%
Q1 2018+2.4%+2.7%-0.2%
Q4 2017+7.3%+12.3%+3.8%
Q3 2017+2.2%+5.8%+11.0%
Q2 2017-0.7%+1.3%+8.1%
Q1 2017-6.5%-7.2%-5.4%
Q4 2014+4.3%+2.5%+6.7%
Q4 2016-4.6%-6.8%+7.0%
Q3 2015+11.0%+10.8%+22.7%
Q3 2016+7.2%+8.3%+21.1%
Q2 2015+14.3%+14.8%+17.2%
Q2 2016+15.8%+15.8%+18.4%
Q1 2016-0.3%
Q1 2015-0.3%
Q4 2015-0.3%
Q3 2014
Q2 2014
Q1 2014

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