Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TPC Group Inc. | d339721d8k.htm |
| EX-99.1 - EARNINGS PRESS RELEASE DATED APRIL 26, 2012 - TPC Group Inc. | d339721dex991.htm |
 Investor Conference Call
Quarter Ended March 31, 2012
April 27, 2012
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
EBITDA, which is a non-GAAP financial measure. We calculate EBITDA as
earnings before interest, taxes, depreciation and amortization. In
certain periods we have reported EBITDA adjusted to remove or add back
items that management believed distorted comparability between periods
(Adjusted EBITDA). There were no such adjustments to EBITDA for any
of the periods presented. Provided herein is a reconciliation, for
each period presented, of EBITDA to Net Income (Loss), which is the most
directly comparable GAAP measure reported in our financial statements. |
 $45.2
$(11.0)
$34.4
$71.0
$35.5
Qtr ended
3/31/2012
Qtr ended
12/31/2011
Qtr ended
9/30/2011
Qtr ended
6/30/2011
Qtr ended
3/31/2011
$18.0
$(18.4)
$9.4
$34.3
$11.4
Qtr ended
3/31/2012
Qtr ended
12/31/2011
Qtr ended
9/30/2011
Qtr ended
6/30/2011
Qtr ended
3/31/2011
3
Net Income (Loss)
EBITDA*
Dollars in millions
except EPS
(unaudited)
* See slide 8 for a reconciliation of EBITDA to Net Income (Loss)
for all periods presented. Net Income (Loss) is the GAAP measure
most directly comparable to EBITDA. Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
(in millions except per share)
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Revenue
606.1
$
574.8
$
835.3
$
792.9
$
555.6
$
Gross Profit (1)
89.1
31.9
87.0
115.6
79.6
Income (Loss) from Operations
34.8
(21.3)
24.0
60.2
25.0
Interest Expense and Other, Net
(7.8)
(8.0)
(8.2)
(8.2)
(7.9)
Income Tax (Expense) Benefit
(9.0)
10.9
(6.4)
(17.7)
(5.7)
Net Income (Loss)
18.0
(18.4)
9.4
34.3
11.4
EPS (Diluted)
1.14
$
(1.18)
$
0.58
$
2.12
$
0.70
$
(1) Defined herein as Revenue less Cost of Sales. Gross profit
for the quarter ended 9/30/2011 does not include a $9.8 million lower of cost or
market adjustment. |
 4
* See slide 8 for a reconciliation of EBITDA to Net Income (Loss)
for all periods presented. Net Income (Loss) is the GAAP measure
most directly comparable to EBITDA. C4 Processing Segment
C4 Processing Segment
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Revenue (mm $)
500.9
$
478.9
$
713.5
$
659.1
$
434.3
$
Gross Profit (mm $) (1)
69.4
11.3
68.4
92.8
58.0
EBITDA (mm $) *
43.9
(13.0)
33.5
66.9
30.6
Volume (mm lbs)
504.4
560.2
669.1
691.2
581.2
Gross Profit ($/lb)
0.14
$
0.02
$
0.10
$
0.13
$
0.10
$
EBITDA ($/lb)
0.09
$
(0.02)
$
0.05
$
0.10
$
0.05
$
Performance Products Segment
Performance Products Segment
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Revenue (mm $)
105.2
$
95.9
$
121.8
$
133.8
$
121.3
$
Gross Profit (mm $) (1)
19.7
20.6
18.6
22.8
21.6
EBITDA (mm $) *
9.5
11.4
8.1
12.0
11.6
Volume (mm lbs)
129.3
117.7
149.1
168.6
169.5
Gross Profit ($/lb)
0.15
$
0.18
$
0.12
$
0.14
$
0.13
$
EBITDA ($/lb)
0.07
$
0.10
$
0.05
$
0.07
$
0.07
$
Total
Total
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Revenue (mm $)
606.1
$
574.8
$
835.3
$
792.9
$
555.6
$
Gross Profit (mm $) (1)
89.1
31.9
87.0
115.6
79.6
EBITDA (mm $) *
53.4
(1.6)
41.5
78.9
42.2
Volume (mm lbs)
633.8
677.9
818.1
859.8
750.7
Gross Profit ($/lb)
0.14
$
0.05
$
0.11
$
0.13
$
0.11
$
EBITDA ($/lb)
0.08
$
(0.00)
$
0.05
$
0.09
$
0.06
$
Selected Operating Results (unaudited)
(1) Defined herein as Revenue less Cost of Sales. Gross profit
for the quarter ended 9/30/2011 does not include a $9.8 million lower of cost or
market adjustment, of which $9.7 million relates to our C4 Processing
Segment and $0.1 million relates to our Performance Products segment. |
 Supplemental Data
5 |
 6
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
End of Qtr BD Contract Price ($/lb) (1)
1.46
0.98
1.71
1.53
1.04
Unleaded Gasoline Qtr Avg - USGC ($/gal) (2)
3.02
2.62
2.89
3.07
2.61
US Ethylene Industry Capacity Utilization (%) (3)
89.4
91.5
91.9
89.1
92.5
US BD Production (mm lbs) (3)
683
739
812
795
833
(1) Source: CMAI
(2) Source: Platts
(3) Source: Hodson
Selected Market Data
(unaudited) |
 7
Selected Financial Data
(unaudited)
* See slide 8 for a reconciliation of EBITDA to Net Income (Loss)
for all periods presented. Net Income (Loss) is the GAAP measure
most directly comparable to EBITDA. 3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Sales Volumes (mm lbs) (1)
633.8
677.9
818.1
859.8
750.7
Revenue (mm $)
606.1
574.8
835.3
792.9
555.6
Gross Profit (2)
89.1
31.9
87.0
115.6
79.6
EBITDA (mm $) *
C4 Processing
43.9
(13.0)
33.5
66.9
30.6
Performance Products
9.5
11.4
8.1
12.0
11.6
Corporate
(8.2)
(9.4)
(7.1)
(7.9)
(6.7)
EBITDA ($ / lb)
0.07
(0.02)
0.04
0.08
0.05
Operating Segment EBITDA ($ / lb) (3)
0.08
(0.00)
0.05
0.09
0.06
% Change in Butadiene contract price
49%
(42%)
12%
47%
21%
Impact on Gross Profit (mm $)
17
(36)
6
23
8
Quarter Ended
(1) Does not include tolling volume.
(2) Defined herein as Revenue less Cost of Sales. Gross profit
for the quarter ended 9/30/2011 does not include a $9.8 million lower of cost or
market adjustment.
(3) EBITDA for the C4 Processing and Performance
Products operating segments - i.e. total EBITDA less Corporate. |
 8
Reconciliation of EBITDA to Net Income
(unaudited, in millions)
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
Net income (loss)
18.0
$
(18.4)
$
9.4
$
34.3
$
11.4
$
Income tax expense (benefit)
9.0
(10.9)
6.4
17.7
5.7
Interest expense, net
8.0
8.2
8.6
8.6
8.4
Depreciation and amortization
10.2
10.1
10.0
10.4
10.0
EBITDA (*)
45.2
$
(11.0)
$
34.4
$
71.0
$
35.5
$
Quarter Ended
(*) EBITDA is presented and discussed herein because management believes it enhances understanding by
investors and lenders of the Company’s financial performance. 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. 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 EBITDA as earnings before interest, taxes, depreciation and amortization.
In certain periods we have reported EBITDA adjusted to remove or add back items that management
believed distorted comparability between periods (Adjusted EBITDA). There were no such adjustments to EBITDA
for any of the periods presented above. Our calculation of EBITDA may be different from calculations
used by other companies; therefore, it may not be comparable to other companies. |