Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TPC Group Inc. | d254961d8k.htm |
| EX-99.1 - EARNINGS PRESS RELEASE - TPC Group Inc. | d254961dex991.htm |
 Investor Conference Call
Quarter Ended September 30, 2011
November 11, 2011
Exhibit 99.2 |
 2
SEC Disclosure Information
»
Forward
Looking
Statements
-
Some
of
our
comments
today
may
include
forward-
looking statements about our expectations for the future. These statements include
assumptions, expectations, predictions, intentions or beliefs about future
events. Although
we
believe
that
such
statements
are
based
on
reasonable
assumptions,
no
assurance can be given that such statements will prove to have been correct, and
we do not plan to update any forward-looking statements if our
expectations change. More information about the risks and
uncertainties relating to TPC Group and the forward- looking statements
may be found in our SEC filings. »
Non-GAAP Financial Measures -
Some of our comments today will reference
Adjusted EBITDA, which is a non-GAAP financial measure. Provided herein
is a reconciliation,
for
each
period
presented,
of
Adjusted
EBITDA
to
Net
Income,
which
is
the most directly comparable GAAP measure reported in our financial
statements. |
 3
Net Income
Adjusted EBITDA*
Dollars in millions
except EPS
* See slide 8 for a reconciliation of Adjusted EBITDA to Net
Income for all periods presented. Net Income (Loss) is the GAAP
measure most directly comparable to Adjusted EBITDA. Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
(in millions except per share)
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Revenue
835.3
$
792.9
$
555.6
$
486.1
$
499.4
$
Gross Profit
87.0
115.7
79.6
59.2
71.3
Operating Income
24.0
60.2
25.0
8.4
22.5
Interest Expense and Other
(8.2)
(8.2)
(7.9)
(10.7)
(2.8)
Income Tax (Expense) / Benefit
(6.4)
(17.7)
(5.7)
1.6
(6.9)
Net Income
9.4
34.3
11.4
(0.7)
12.8
EPS (Diluted)
0.58
$
2.12
$
0.70
$
(0.04)
$
0.70
$ |
 4
C4 Processing
C4 Processing
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Revenue ($mm)
713.5
$
659.1
$
434.3
$
394.6
$
397.9
$
Gross Profit ($mm)
68.4
92.8
58.0
40.2
47.3
Adj. EBITDA ($mm)
33.5
66.9
30.6
15.7
23.8
Volume (mm)
669.1
691.2
581.2
597.2
587.1
Gross Profit (¢/lb)
0.10
$
0.13
$
0.10
$
0.07
$
0.08
$
Adj. EBITDA (¢/lb)
0.05
$
0.10
$
0.05
$
0.03
$
0.04
$
Performance Products
Performance Products
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Revenue ($mm)
121.8
$
133.8
$
121.3
$
91.5
$
101.5
$
Gross Profit ($mm)
18.6
22.8
21.6
19.0
24.0
Adj. EBITDA ($mm)
8.1
12.0
11.6
9.2
14.6
Volume (mm)
149.1
168.6
169.5
141.0
161.6
Gross Profit (¢/lb)
0.12
$
0.14
$
0.13
$
0.13
$
0.15
$
Adj. EBITDA (¢/lb)
0.05
$
0.07
$
0.07
$
0.07
$
0.09
$
Total
Total
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Revenue ($mm)
835.3
$
792.9
$
555.6
$
486.1
$
499.4
$
Gross Profit ($mm)
87.0
115.6
79.6
59.2
71.3
Adj. EBITDA ($mm)
41.5
78.9
42.2
24.9
38.4
Volume (mm)
818.1
859.8
750.7
738.2
748.7
Gross Profit (¢/lb)
0.11
$
0.13
$
0.11
$
0.08
$
0.10
$
Adj. EBITDA (¢/lb)
0.05
$
0.09
$
0.06
$
0.03
$
0.05
$
Selected Operating Results (unaudited)
* See slide 8 for a reconciliation of Adjusted EBITDA to Net Income for all periods
presented. Net Income (Loss) is the GAAP measure most directly
comparable to Adjusted EBITDA. |
 Supplemental Data
5 |
  6
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
End of Qtr BD Contract Price ($/lb) (1)
170.5
1.53
1.04
0.86
0.93
Unleaded Gasoline Qtr Avg - USGC ($/gal) (2)
2.89
3.07
2.61
2.18
2.00
US Ethylene Industry Capacity Utilization (%) (3)
91.9
89.1
92.5
88.0
92.3
US BD Production (mm lbs) (3)
812
795
833
813
838
(1) Source: CMAI
(2) Source: Platts
(3) Source: Hodson
Selected Market Data |
  7
Selected Financial Data
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Sales Volumes (mm lbs) (1)
818.1
859.8
750.7
738.2
748.7
Sales Revenue ($mm)
835.3
792.9
555.6
486.1
499.4
Adjusted EBITDA ($mm)
C4 Processing
33.5
66.9
30.6
15.7
23.8
Performance Products
8.1
12.0
11.6
9.2
14.6
Corporate
(7.1)
(7.9)
(6.7)
(6.2)
(5.6)
Adjusted EBITDA (2)
34.4
71.0
35.5
18.7
32.8
Adjusted EBITDA per pound
0.04
0.08
0.05
0.03
0.04
Operating Segment Adjusted EBITDA per pound (3)
0.05
0.09
0.06
0.03
0.05
(1) Does not include tolling volume.
(2) Adjusted EBITDA as set by current definition.
(3) Adjusted EBITDA for the C4 Processing and Performance Products
operating segments - i.e. total Adjusted EBITDA less Corporate.
Quarter Ended
(Unaudited) |
  8
Reconciliation of Adjusted EBITDA to Net Income
(*)
Adjusted
EBITDA
is
presented
and
discussed
herein
because
management
believes
it
enhances
understanding
by
investors
and
lenders
of
the
Company’s
financial
performance.
Adjusted
EBITDA
is
not
a
measure
computed
in
accordance
with
GAAP.
Accordingly
it
does
not
represent
cash
flow
from
operations,
nor
is
it
intended
to
be
presented
herein
as
a
substitute
for
operating
income
or
net
income
as
indicators
of
the
Company’s
operating
performance.
Adjusted
EBITDA
is
the
primary
performance
measurement
used
by
senior
management
and
our
Board
of
Directors
to
evaluate
operating
results
of,
and
to
allocate
capital
resources
between,
our
business
segments.
We
calculate
Adjusted
EBITDA
as
earnings
before
interest,
taxes,
depreciation
and
amortization
(EBITDA),
which
is
then
adjusted
to
remove
or
add
back
certain
items.
The
items
removed
or
added
back
have
historically
consisted
of
items
we
consider
to
be
non-recurring
in
nature
and
which
we
believe
distort
comparability
between
periods.
There
were
no
such
items
identified
in
the
Reconciliations
of
Adjusted
EBITDA
to
Net
Income
for
the
periods
presented
above.
Our
calculation
of
Adjusted
EBITDA
may
be
different
from
calculations
used
by
other
companies;
therefore,
it
may
not
be
comparable
to
other
companies.
9/30/2011
6/30/2011
3/31/2011
12/31/2010
9/30/2010
Net income (loss)
9.4
$
34.3
$
11.4
$
(0.7)
$
12.8
$
Income tax expense
6.4
17.7
5.7
(1.6)
6.9
Interest expense, net
8.6
8.6
8.4
11.1
3.2
Depreciation and amortization
10.0
10.4
10.0
9.9
9.8
Adjusted EBITDA
34.4
$
71.0
$
35.5
$
18.7
$
32.7
$
Quarter Ended
(Unaudited, in millions) |