Net income for the fourth quarter of 2011 of
For the year ended December 31, 2011, Westlake had net income of
EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of
Net cash provided by operating activities was
OLEFINS SEGMENT
Income from operations for the Olefins segment decreased by $78.6 million to $75.9 million in the fourth quarter of 2011 from
Income from operations for the fourth quarter of 2011 for the Olefins segment of
Income from operations was
VINYLS SEGMENT
The Vinyls segment reported a loss from operations of
The Vinyls segment reported a loss from operations of
The Vinyls segment reported income from operations of
The statements in this release relating to matters that are not historical facts, including the timing and results of expansion and construction projects and the competitive position of North American olefins and vinyls producers, including Westlake, are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: general economic and business conditions; the cyclical nature of the chemical industry; availability, cost and volatility of raw materials and utilities, including natural gas from shale production; uncertainties associated with
In this release, Westlake refers to a non-GAAP financial measure, EBITDA. EBITDA is calculated as net income before interest expense, income taxes, depreciation and amortization. The body of accounting principles generally accepted in
Westlake Chemical Corporation Conference Call Information:
A conference call to discuss
A replay of the conference call will be available beginning two hours after its conclusion until
The conference call will also be available via webcast at http://phx.corporate-ir.net/phoenix.zhtml?c=180248&p=IROL-EventDetails&EventID=4717022 and the earnings release can be obtained via the company's Web page at http://www.westlake.com/fw/main/IR-Home-Page-123.html.
WESTLAKE CHEMICAL CORPORATION |
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Twelve Months Ended |
||||||||
December 31, |
December 31, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||
(In thousands of dollars, except per share data) |
|||||||||
Net sales |
$ 859,175 |
$ 795,387 |
$ 3,619,848 |
$ 3,171,787 |
|||||
Cost of sales |
781,915 |
631,263 |
3,060,842 |
2,689,104 |
|||||
Gross profit |
77,260 |
164,124 |
559,006 |
482,683 |
|||||
Selling, general and administrative expenses |
26,801 |
27,072 |
112,210 |
104,319 |
|||||
Income from operations |
50,459 |
137,052 |
446,796 |
378,364 |
|||||
Interest expense |
(12,543) |
(11,301) |
(50,992) |
(39,875) |
|||||
Other income, net |
1,332 |
2,935 |
5,628 |
4,471 |
|||||
Income before income taxes |
39,248 |
128,686 |
401,432 |
342,960 |
|||||
Provision for income taxes |
12,805 |
44,613 |
142,466 |
121,567 |
|||||
Net income |
$ 26,443 |
$ 84,073 |
$ 258,966 |
$ 221,393 |
|||||
Earnings per share: |
|||||||||
Basic |
$ 0.40 |
$ 1.27 |
$ 3.89 |
$ 3.35 |
|||||
Diluted |
$ 0.40 |
$ 1.26 |
$ 3.87 |
$ 3.34 |
|||||
WESTLAKE CHEMICAL CORPORATION |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
December 31, |
December 31, |
||||||
2011 |
2010 |
||||||
(In thousands of dollars) |
|||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ 825,901 |
$ 630,299 |
|||||
Accounts receivable, net |
407,372 |
362,863 |
|||||
Inventories |
490,777 |
450,028 |
|||||
Other current assets |
32,106 |
32,770 |
|||||
Total current assets |
1,756,156 |
1,475,960 |
|||||
Property, plant and equipment, net |
1,232,066 |
1,170,334 |
|||||
Restricted cash |
96,283 |
150,288 |
|||||
Other assets, net |
182,316 |
157,562 |
|||||
Total assets |
$ 3,266,821 |
$ 2,954,144 |
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities (accounts payable and accrued liabilities) |
$ 364,595 |
$ 323,578 |
|||||
Long-term debt |
764,563 |
764,482 |
|||||
Other liabilities |
381,351 |
361,014 |
|||||
Total liabilities |
1,510,509 |
1,449,074 |
|||||
Stockholders' equity |
1,756,312 |
1,505,070 |
|||||
Total liabilities and stockholders' equity |
$ 3,266,821 |
$ 2,954,144 |
|||||
WESTLAKE CHEMICAL CORPORATION |
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
(Unaudited) |
|||||
Twelve Months Ended |
|||||
December 31, |
|||||
2011 |
2010 |
||||
(In thousands of dollars) |
|||||
Cash flows from operating activities |
|||||
Net income |
$ 258,966 |
$ 221,393 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||
Depreciation and amortization |
131,397 |
128,732 |
|||
Deferred income taxes |
14,114 |
14,153 |
|||
Other balance sheet changes |
(42,181) |
(80,994) |
|||
Net cash provided by operating activities |
362,296 |
283,284 |
|||
Cash flows from investing activities |
|||||
Additions to equity investments |
- |
(10,177) |
|||
Additions to property, plant and equipment |
(176,843) |
(81,269) |
|||
Proceeds from disposition of assets |
2,880 |
914 |
|||
Proceeds from repayment of loan to affiliate |
1,192 |
763 |
|||
Purchase of securities and other investments |
(30,265) |
- |
|||
Settlements of derivative instruments |
251 |
9,494 |
|||
Net cash used for investing activities |
(202,785) |
(80,275) |
|||
Cash flows from financing activities |
|||||
Capitalized debt issuance costs |
(2,697) |
(3,331) |
|||
Dividends paid |
(18,265) |
(16,014) |
|||
Proceeds from exercise of stock options |
5,344 |
3,745 |
|||
Repurchase of common stock for treasury |
(2,518) |
- |
|||
Utilization of restricted cash |
54,227 |
197,298 |
|||
Net cash provided by financing activities |
36,091 |
181,698 |
|||
Net increase in cash and cash equivalents |
195,602 |
384,707 |
|||
Cash and cash equivalents at beginning of the year |
630,299 |
245,592 |
|||
Cash and cash equivalents at end of the year |
$ 825,901 |
$ 630,299 |
|||
WESTLAKE CHEMICAL CORPORATION |
||||||||
SEGMENT INFORMATION |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
December 31, |
December 31, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
(In thousands of dollars) |
||||||||
Net external sales |
||||||||
Olefins |
$ 621,773 |
$ 563,704 |
$ 2,567,842 |
$ 2,261,212 |
||||
Vinyls |
237,402 |
231,683 |
1,052,006 |
910,575 |
||||
$ 859,175 |
$ 795,387 |
$ 3,619,848 |
$ 3,171,787 |
|||||
Income (loss) from operations |
||||||||
Olefins |
$ 75,890 |
$ 154,521 |
$ 459,266 |
$ 460,027 |
||||
Vinyls |
(19,553) |
(12,380) |
4,012 |
(62,429) |
||||
Corporate and other |
(5,878) |
(5,089) |
(16,482) |
(19,234) |
||||
$ 50,459 |
$ 137,052 |
$ 446,796 |
$ 378,364 |
|||||
Depreciation and amortization |
||||||||
Olefins |
$ 21,917 |
$ 21,723 |
$ 86,915 |
$ 86,086 |
||||
Vinyls |
11,095 |
10,540 |
43,877 |
42,062 |
||||
Corporate and other |
141 |
147 |
605 |
584 |
||||
$ 33,153 |
$ 32,410 |
$ 131,397 |
$ 128,732 |
|||||
Other income, net |
||||||||
Olefins |
$ 780 |
$ 333 |
$ 2,813 |
$ 440 |
||||
Vinyls |
15 |
95 |
194 |
399 |
||||
Corporate and other |
537 |
2,507 |
2,621 |
3,632 |
||||
$ 1,332 |
$ 2,935 |
$ 5,628 |
$ 4,471 |
|||||
WESTLAKE CHEMICAL CORPORATION |
||||||||||||
RECONCILIATION OF EBITDA TO NET INCOME AND TO NET CASH |
||||||||||||
PROVIDED BY OPERATING ACTIVITIES |
||||||||||||
(Unaudited) |
||||||||||||
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
||||||||||
September 30, |
December 31, |
December 31, |
||||||||||
2011 |
2011 |
2010 |
2011 |
2010 |
||||||||
(In thousands of dollars) |
||||||||||||
EBITDA |
$ 151,649 |
$ 84,944 |
$ 172,397 |
$ 583,821 |
$ 511,567 |
|||||||
Less: |
||||||||||||
Provision for income taxes |
38,131 |
12,805 |
44,613 |
142,466 |
121,567 |
|||||||
Interest expense |
12,727 |
12,543 |
11,301 |
50,992 |
39,875 |
|||||||
Depreciation and amortization |
32,861 |
33,153 |
32,410 |
131,397 |
128,732 |
|||||||
Net income |
67,930 |
26,443 |
84,073 |
258,966 |
221,393 |
|||||||
Changes in operating assets and liabilities |
47,632 |
96,821 |
(16,631) |
89,216 |
47,738 |
|||||||
Deferred income taxes |
3,486 |
(5,321) |
861 |
14,114 |
14,153 |
|||||||
Net cash provided by operating activities |
$ 119,048 |
$ 117,943 |
$ 68,303 |
$ 362,296 |
$ 283,284 |
|||||||
WESTLAKE CHEMICAL CORPORATION |
|||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||
Product Sales Price and Volume Variance by Operating Segments |
|||||||||||
Fourth Quarter 2011 vs. |
Fourth Quarter 2011 vs. |
||||||||||
Fourth Quarter 2010 |
Third Quarter 2011 |
||||||||||
Average |
Volume |
Average |
Volume |
||||||||
Olefins |
+5.0% |
+5.3% |
-9.6% |
-1.0% |
|||||||
Vinyls |
+9.5% |
-7.0% |
-14.2% |
+1.2% |
|||||||
Company |
+6.3% |
+1.7% |
-10.9% |
-0.4% |
|||||||
Average Quarterly Industry Prices (1) |
|||||||||||
Quarter Ended |
|||||||||||
December 31, |
March 31, |
June 30, |
September 30, |
December 31, |
|||||||
2010 |
2011 |
2011 |
2011 |
2011 |
|||||||
Ethane (cents/lb) |
21.4 |
22.1 |
26.2 |
26.3 |
28.8 |
||||||
Propane (cents/lb) |
29.8 |
32.4 |
35.4 |
36.4 |
34.1 |
||||||
Ethylene (cents/lb) (2) |
47.3 |
49.3 |
57.5 |
55.6 |
54.6 |
||||||
Polyethylene (cents/lb) (3) |
92.7 |
96.7 |
103.7 |
96.0 |
92.7 |
||||||
Styrene (cents/lb) (4) |
63.3 |
74.0 |
76.3 |
73.3 |
64.0 |
||||||
Caustic ($/short ton) (5) |
451.7 |
470.0 |
536.7 |
570.0 |
613.3 |
||||||
Chlorine ($/short ton) (6) |
335.0 |
315.0 |
351.7 |
348.3 |
305.8 |
||||||
PVC (cents/lb) (7) |
67.7 |
69.5 |
77.8 |
78.2 |
74.8 |
||||||
(1) Industry pricing data was obtained through IHS Chemical. We have not independently verified the data. |
|||||||||||
(2) Represents average North American contract prices of ethylene over the period as reported by IHS Chemical. |
|||||||||||
(3) Represents average North American contract prices of polyethylene low density film over the period as reported by IHS Chemical. |
|||||||||||
(4) Represents average North American contract prices of styrene over the period as reported by IHS Chemical. |
|||||||||||
(5) Represents average North American acquisition prices of caustic soda (diaphragm grade) over the period as reported by IHS Chemical. |
|||||||||||
(6) Represents average North American contract prices of chlorine (into chemicals) over the period as reported by IHS Chemical. |
|||||||||||
(7) Represents average North American contract prices of PVC over the period as reported by IHS Chemical. |
|||||||||||
SOURCE
Investors, Steve Bender, or Media, David R. Hansen, +1-713-960-9111