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North American Construction Group Announces Transformative Acquisition of MacKellar Group, A Leading Private Australian Heavy Equipment Solutions Provider

ACHESON, Alberta, July 26, 2023 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG” or the “Company”) (TSX:NOA) today announced that it has entered into a definitive purchase and sale agreement to acquire (the “Transaction”) MacKellar Group (“MacKellar”) for an estimated $395 million (the “Consideration”). MacKellar Group, with its heavy construction equipment fleet, is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors, with a strong reputation derived from decades of reliable performance. The Transaction will significantly expand NACG’s capability and allow the Company to serve a highly valuable and diversified base of customers globally.

The Transaction emerged through continued dialogue with MacKellar over the past two years, following NACG’s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021. The acquisition of MacKellar is highly complementary to, and a natural strategic fit with, NACG given shared cultural alignment, focus on safety and operational similarities. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitment of service to all its customers and partners.

“NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity,” said Joe Lambert, Chief Executive Officer of NACG. “Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximize production and efficiency. I want to welcome the MacKellar team to the NACG family. We are extremely proud to be sharing in what we believe will be a bright future together.”

“Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy. Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia,” said Duncan MacKellar, Chairman of MacKellar Group.

Strategic Highlights

  • Combined Business with Significant Global Reach and Diversified Customer Base: MacKellar provides the opportunity to expand the Company’s geographic and operational presence in Australia, while adding a high-quality investment-grade customer base. The Transaction provides diversification with no single end market contributing more than approximately a third of adjusted EBIT.
  • Shared Core Values and Culture: MacKellar shares NACG’s values and is committed to hands-on management, continuous drive to be the low-cost provider, a focus on building strong partnerships with customers, and maintaining operating and safety excellence.
  • Turnkey Operations with Highly Valuable Asset Base: MacKellar Group adds approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds. Its asset base is comprised of a well-maintained fleet operating at effective utilization levels.
  • Prudent Approach to the Transaction Minimizes Execution Risk: Continuous dialogue and in-person operational field reviews by both parties has allowed for the Company to ensure there is a strong cultural fit and alignment between the two organizations. This alignment is also reflected in the transaction structure with a significant portion of the consideration being deferred.
  • Robust Growth Prospects with Strong Backlog: Operations in Western Australia and Queensland serve as a growth pillar given the large and diverse resource markets combined with a mining friendly jurisdiction. The combined company is expected to have over $4.0 billion in contractual backlog by December 31, 2023 which will be the foundation to drive significant growth.

“The transaction represents a major milestone for NACG and adds significant scale to our business. Both NACG and MacKellar are leaders with strong reputation, culture and commitment to safety. This partnership will accelerate our combined growth and allow us to better serve our customers on a global scale,” said Martin Ferron, Chairman of the Board of NACG.

Financial Highlights of the Transaction

  • The total estimated consideration of $395 million: i) represents less than 2.75x of expected EBITDA in 2024, ii) is estimated to be less than the book value of MacKellar’s assets and iii) is expected to be over 50% accretive based on incremental earnings per share.
  • The Transaction is fully funded by bank secured & vendor provided debt financing.

The Transaction includes of an upfront payment of A$75 million which will be funded by the upsized revolving Credit Facility described below. In addition, liquidity from the Credit Facility and assumed equipment financing of MacKellar is estimated to provide $200 million of the total consideration. The remainder of the Consideration is addressed through an earn-out and deferred payment mechanism payable to the vendors over four years, with the earn-out constituting approximately 70% of this amount.

2023 Outlook and 2024 Incremental Impacts

Based on consistent equipment utilization and the contractual backlog in place, management has provided ranges of certain financial measures for 2023 and expected incremental impacts of the MacKellar Group to the year ended December 31, 2024. Upon close of the Transaction, management intends to provide a 2024 Outlook including guidance typically provided with regards to capital allocation.

   Full Year

Ended 2022


(1)

 		Combined

2023 Outlook


(




2)

 		Incremental

2024 Impacts


(




3)
Combined revenue $1.05 billion $1.15 to 1.25 billion $450 to $500 million
Adjusted EBITDA


(




4)

 		$245 million $275 to $305 million $130 to $160 million
Adjusted EPS


(




4)

 		$2.41 per share $2.60 to $2.80 per share $1.10 to $1.40 per share
Sustaining capital


(




4)

 		$113 million $140 to $160 million $65 to $85 million
Free cash flow


(




4)

 		$70 million $100 to $120 million $55 to $75 million
Net debt

leverage


(




4)(5)

 		June 30, 2023             –    1.4x on a TTM basis
December 31, 2023    –    targeting 1.8x on a pro-forma TTM basis
December 31, 2024    –    less than 1.5x excluding potential conversion of debentures
Contractual

backlog


(




4)

 		Excluding the Transaction, contractual backlog estimated to exceed $2.0 billion by year-end
Including MacKellar contracts, contractual backlog estimated to exceed $4.0 billion by year-end



(1)
 This historical information does not include MacKellar



(


2


)
 On a combined basis assuming the completion of the acquisition of MacKellar in Q4 2023. See “Forward-Looking Information”



(


3


)
 Expected incremental contribution of MacKellar for the year ending December 31, 2024. See “Forward-Looking Information”



(


4


)
 See “Non-GAAP Financial Information”



(


5


)
TTM refers to trailing twelve months

Underwritten Financing

The Company currently has in place a $300 million revolving credit facility with a syndicate of financial institutions, and which permits the incurrence of an additional $175 million of secured equipment financing with third parties. Concurrent with the announcement of the Transaction, the Company has entered into a commitment letter for an underwritten financing from National Bank of Canada, as sole lead arranger and sole bookrunner to amend and restate the current facility to a senior revolving credit facility (the “Credit Facility”) in the maximum amount of $450 million. The amended and upsized Credit Facility will permit the incurrence of an additional $300 million of secured equipment financing from third parties.

Conditions to the Acquisition

The Transaction is not subject to any financing conditions and is expected to close in the fourth quarter of 2023 subject to obtaining contractual consents and the satisfaction of other customary closing conditions.

Advisors

National Bank Financial is acting as exclusive financial advisor to NACG on the Transaction. Fasken Martineau DuMoulin LLP is acting as a legal advisor, and Corrs Chambers Westgarth is acting as local Australian counsel, to NACG.

Conference Call and Webcast

Management will hold a conference call and webcast to discuss the Transaction on Thursday, July 27, 2023, at 6:00 am Mountain Time (8:00 am Eastern Time).

The call can be accessed by dialing:
Toll free: 1-888-886-7786
Conference ID: 47287641

A replay will be available through September 1, 2023, by dialing:
Toll Free: 1-877-674-7070
Conference ID: 47287641
Playback Passcode: 287641

The live presentation and webcast can be accessed at:
https://viavid.webcasts.com/starthere.jsp?ei=1624616&tp_key=5ac36a78e5

A replay will be available until September 1, 2023, using the link provided. A copy of the investor presentation is also available on the NACG website at www.nacg.ca.

Forward Looking Information

This release contains “forward-looking information” within the meaning of applicable securities legislation which reflects the current plans and expectations of the Company with respect to future events and financial performance. All statements other than statements of historical or current facts may be forward looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘believes’, ‘continues’, ‘expects’, ‘projects’, ‘anticipates’, ‘plans’, ‘estimates’, ‘seeks’, ‘intends’, ‘targets’, ‘forecasts’, or negative or grammatical versions thereof and other similar expressions, or future or conditional verbs such as ‘may’, ‘will’, ‘should’, ‘would’ and ‘could’. Forward-looking information in this includes, but is not limited to, statements with respect to: robust growth prospects; the expected backlog of the combined company; the acceleration of the combined company’s growth; the estimated consideration; the multiple of expected 2024 EBITDA that the consideration represents; the transaction being accretive and expected accretion on incremental earnings per share; expected proforma revenue and Adjusted EBITDA on a combined company basis and the incremental impact of MacKellar on such figures; Adjusted EPS on a combined company basis and the incremental impact of MacKellar on such figure; sustaining capital on a combined company basis and the incremental impact of MacKellar on such figure; free cash flow on a combined company basis and the incremental impact of MacKellar on such figure; estimated enterprise value; book value of assets; leverage by end of 2023 and 2024 on a combined company basis and the incremental impact of MacKellar on such figures;; independent Australian operations post-closing achieving global reach with minimal integration risk; acquiring critical scale globally; obtaining critical mass in a resource rich and mining friendly jurisdiction; proforma customer/project composition; no single market contributing approximately more than a third of total adjusted EBIT; closing of the Transaction occurring in the fourth quarter of 2023; the anticipated timeline for realization of synergies and full integration; minimal financing risk; executing grown through winning large-scale mining or civil construction projects; leveraging expertise to expand presence and diversify exposure to other commodities. Forward-looking information is based on management’s plans, estimates, projections, beliefs and opinions as at the date of this release, and the assumptions related to those plans, estimates, projections, beliefs and opinions may change; therefore, they are presented for the purpose of assisting the Company’s security holders in understanding management’s views at such time regarding those future outcomes and may not be appropriate for other purposes. Although the forward-looking information contained in this release is based on assumptions which the Company believes are reasonable, there can be no assurance that actual results will be consistent with such forward-looking information. The forward-looking information in this release relate only to events or information as of the date on which the statements are made and, except as specifically required by applicable securities laws, the Company undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. There can be no assurance that the forward-looking information will prove to be accurate. Actual results could differ materially from those contemplated by the forward-looking information include: general market performance including capital market conditions and availability and cost of credit; foreign currency and exchange risk; performance of the market sectors that the Company and the MacKellar Group serve; impact of factors such as increased pricing pressure and possible margin compression; the regulatory and tax environment; the ability of the Company to complete the Transaction; the ability of the Company to execute its financing plans in connection with the Transaction; that the conditions to closing the Transaction are not satisfied on a timely basis or at all; unanticipated difficulties or expenditures relating to the Transaction; the response of the Company’s and MacKellar Group’s business partners, customers and suppliers to the announcement of the Transaction; the impact of competitive responses to the announcement of the Transaction; the diversion of management time on Transaction-related issues; risks associated with greater than anticipated tax liabilities or expenses; the prompt and effective integration of MacKellar Group; the ability to achieve the anticipated synergies and value creation-contemplated by Transaction within the expected timeframe or at all; the ability to expand into new markets and geographic regions; that one or more customers, or other persons with which MacKellar Group has contracted, experience insolvency or bankruptcy with resulting delays, costs or losses; political, labour or supplier disruptions; imposition of new duties, tariffs or other legal barriers that impact the MacKellar Group’s markets; that growth in markets the MacKellar Group serves is less than expected; risks relating to legal proceedings to which the Company or the MacKellar Group is or may become a party; and other risks detailed from time to time in the Company’s filings with the Canadian securities regulators. Due to the risks, uncertainties and assumptions inherent in forward looking information, readers should not place undue reliance on forward looking information contained herein. For more complete information about the Company and the material factors and assumptions underlying our forward-looking information please read the most recent disclosure documents posted on the Company’s website www.nacg.ca or filed with the SEC and the CSA. You may obtain these documents by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedar.com.

Future Oriented Financial Information

To the extent any forward-looking information in this release constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable securities laws, such information is being provided to demonstrate the Company’s internal projections and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out in this release. While such information has been prepared using assumptions considered reasonable by the Company at the time of preparation, such assumptions may not materialize as a result of unanticipated events and that may occur subsequent to the date of such future-oriented financial information and financial outlooks. The Company’s actual financial position and results of operations may differ materially from management’s current expectations. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations. All future-oriented financial information and financial outlooks in this release are subject to the risks described above under “Forward-Looking Information”.

Non-GAAP Financial Measures and Non-GAAP Ratios

This release references certain non-GAAP financial measures and non-GAAP ratios within the meaning of applicable securities laws because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity.  The non-GAAP financial measures contained in this release include “EBIT”, “backlog”, “adjusted EBITDA”, “adjusted EPS”, “sustaining capital” and “free cash flow”. The non-GAAP ratios contained in this release include “net debt leverage”, and “EBITDA multiple”. We believe these non-GAAP financial measures and non-GAAP ratios are commonly used by the investment community for valuation purposes and provide useful metrics common in our industry. These non-GAAP measures and non-GAAP ratios do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each of the above referenced historical non-GAAP financial measure reconciled to its most directly comparable GAAP measure in the “Non-GAAP Financial Measures” section of our Management’s Discussion and Analysis for the year ended December 31, 2022 (the “MD&A”). “EBIT” is defined as “earnings before the effects of interest expense, income taxes”. “Backlog” is a measure of the amount of secured work we have outstanding and, as such, is an indicator of a base level of future revenue potential. We define backlog as work that has a high certainty of being performed as evidenced by the existence of a signed contract or work order specifying expected job scope, value and timing. “Adjusted EBITDA” is defined as adjusted net earnings before the effects of interest expense, income taxes, depreciation, amortization, equity investment depreciation and amortization, and equity earnings in affiliates and joint ventures, but including the equity investment EBIT from our affiliates and joint ventures accounted for using the equity method. “Adjusted EPS” is defined as adjusted net earnings, divided by the weighted-average number of common shares. “Sustaining capital” is defined as expenditures, net of routine disposals, related to property, plant and equipment which have been commissioned and are available for use operated to maintain and support existing earnings and cash flow potential and do not include the characteristics of growth capital. “Free cash flow” is defined as cash from operations less cash used in investing activities including finance lease additions but excluding cash used for growth capital and cash used for/provided by acquisitions. For clarity, based on this definition cash generated by joint venture is reported as free cash flow upon issuance of dividends or advances. “Net debt leverage” is defined as total debt less cash and cash equivalents recorded on the balance sheets divided by adjusted EBITDA. “EBITDA Purchase Multiple” means total Consideration divided EBITDA.

About NACG

North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets.

About MacKellar Group

Established in 1966 based on humble family values MacKellar has earned an enviable reputation in the industry for performance and reliability. MacKellar specialize in heavy earthmoving equipment solutions and has a proud history of working on both mining and civil earthwork projects around Australia.

For further information, please contact:
Jason Veenstra
Chief Financial Officer
North American Construction Group Ltd.
Email: [email protected]



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Webster Raises Prime Lending Rate to 8.50 Percent

Webster Raises Prime Lending Rate to 8.50 Percent

STAMFORD, Conn.–(BUSINESS WIRE)–
Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, announced today that it has raised its prime lending rate to 8.50 percent from 8.25 percent, effective July 27, 2023.

About Webster

Webster Financial Corporation (NYSE: WBS) is the holding company for Webster Bank, National Association and its HSA Bank Division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country’s largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization more than $70 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

Media Contact:

Alice Ferreira, 203-578-2610

[email protected]

Investor Contact:

Emlen Harmon, 212-309-7646

[email protected]

KEYWORDS: United States North America Connecticut

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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NewMarket Corporation Reports Second Quarter and First Half 2023 Results

NewMarket Corporation Reports Second Quarter and First Half 2023 Results

  • Second Quarter Net Income of $99.6 Million and Earnings Per Share of $10.36
  • First Half Petroleum Additives Operating Profit of $264.2 Million
  • 7% Increase in Dividend Declared During the Second Quarter

 

RICHMOND, Va.–(BUSINESS WIRE)–
NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the second quarter and first half of 2023.

Net income for the second quarter of 2023 was $99.6 million compared to net income of $66.5 million for the second quarter of 2022. Second quarter 2023 earnings per share increased to $10.36, up from $6.54 per share in the same period last year. For the first half of 2023, net income was $197.2 million, or $20.45 per share, compared to net income of $125.8 million, or $12.28 per share, for the first half of 2022.

Petroleum additives sales for the second quarter of 2023 were $684.0 million, compared to $721.0 million for the same period in 2022. The decrease was primarily due to lower shipments, partially offset by increased selling prices. Petroleum additives operating profit for the second quarter of 2023 was $132.1 million, compared to $91.2 million for the second quarter of 2022. The increase in operating profit was mainly due to increased selling prices, partially offset by lower shipments and higher operating costs. Shipments were down 16.7% between quarterly periods, with decreases in both lubricant additives and fuel additives shipments. All regions contributed to the decrease in lubricant additives shipments, while North America was the primary contributor to the decrease in fuel additives shipments.

Petroleum additives sales for the first half of both 2023 and 2022 were $1.4 billion. Petroleum additives operating profit for the first half of 2023 was $264.2 million, compared to $178.1 million for the first half of 2022. The increase in operating profit was a result of increased selling prices, partially offset by lower shipments and higher operating and raw material costs. Shipments decreased 16.1% when comparing the first half of 2023 to the same period in 2022, with decreases in both lubricant additives and fuel additives shipments in all regions. Shipments have been lower than our expectations over the last few quarters, as we continue to see the effects of customer destocking and global economic weakness.

The petroleum additives operating margin for the rolling four quarters ended June 30, 2023 was 16.8%, which is back within our historical range and reflects the benefits of our focus on cost control and margin recovery. However, we are still challenged by higher operating costs due to the ongoing inflationary environment. Cost control and margin management remain high priorities for us.

We generated solid cash flows in the first half of 2023 and continue to operate with low leverage. Our working capital improved by $52.5 million, we paid dividends of $41.9 million, which included a 7% increase to our quarterly dividend rate, and we repurchased 119,075 shares of our common stock for $42.9 million (of which $14.4 million was spent in the second quarter of 2023). Our Net Debt to EBITDA ratio decreased to 1.4 as of June 30, 2023, a significant improvement over the December 31, 2022 ratio of 2.0.

We continue to make decisions to promote long-term value for our shareholders and customers, and we remain focused on our long-term objectives. We believe the fundamentals of how we run our business – a long-term view, safety-first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability – will continue to be beneficial for all our stakeholders.

Sincerely,

Thomas E. Gottwald

The petroleum additives segment consists of the North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and Europe/Middle East/Africa/India (Europe or EMEAI) regions.

The Company has disclosed the non-GAAP financial measures EBITDA, Net Debt, and Net Debt to EBITDA, as well as the related calculations in the schedules included with this earnings release. EBITDA is defined as income from continuing operations before the deduction of interest and financing expenses, income taxes, depreciation (on property, plant and equipment) and amortization (on intangibles and lease right-of-use assets). Net Debt is defined as long-term debt, including current maturities, less cash and cash equivalents and marketable securities. Net Debt to EBITDA is defined as Net Debt divided by EBITDA for the rolling four quarters ended as of the specified date. The Company believes that even though these items are not required by or presented in accordance with United States generally accepted accounting principles (GAAP), these additional measures enhance understanding of the Company’s performance and period to period comparability. The Company believes that these items should not be considered an alternative to our results determined under GAAP.

As a reminder, a conference call and Internet webcast is scheduled for 3:00 p.m. EDT on Thursday, July 27, 2023, to review second quarter 2023 financial results. You can access the conference call live by dialing 1-888-506-0062 (domestic) or 1-973-528-0011 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until August 3, 2023, at 3:00 p.m. EDT by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode number is 48659. The call will also be broadcast via the Internet and can be accessed through the Company’s website at www.NewMarket.com or www.webcaster4.com/Webcast/Page/2001/48659. A webcast replay will be available for 30 days.

NewMarket Corporation, through its subsidiaries Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated additive packages to market-general additives, the NewMarket family of companies provides the world with the technology to make engines run smoother, machines last longer, and fuels burn cleaner.

Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden, sharp, or prolonged raw material price increases; competition from other manufacturers; current and future governmental regulations; the loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, wars and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from future acquisitions, or our inability to successfully integrate future acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, which is available to shareholders upon request.

You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.

NEWMARKET CORPORATION AND SUBSIDIARIES

SEGMENT RESULTS AND OTHER FINANCIAL INFORMATION

(In thousands, except per-share amounts, unaudited)

 

 

 

Second Quarter Ended

June 30,

 

Six Months Ended

June 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net Sales:

 

 

 

 

 

 

 

 

Petroleum additives

 

$

683,969

 

 

$

721,021

 

 

$

1,383,960

 

 

$

1,381,325

 

All other

 

 

1,161

 

 

 

2,618

 

 

 

3,959

 

 

 

4,866

 

Total

 

$

685,130

 

 

$

723,639

 

 

$

1,387,919

 

 

$

1,386,191

 

Segment operating profit:

 

 

 

 

 

 

 

 

Petroleum additives

 

$

132,138

 

 

$

91,185

 

 

$

264,206

 

 

$

178,107

 

All other

 

 

(1,022

)

 

 

(262

)

 

 

(1,997

)

 

 

(164

)

Segment operating profit

 

 

131,116

 

 

 

90,923

 

 

 

262,209

 

 

 

177,943

 

Corporate unallocated expense

 

 

(6,810

)

 

 

(7,332

)

 

 

(13,301

)

 

 

(11,222

)

Interest and financing expenses

 

 

(10,255

)

 

 

(7,084

)

 

 

(21,028

)

 

 

(16,490

)

Loss on early extinguishment of debt

 

 

0

 

 

 

0

 

 

 

0

 

 

 

(7,545

)

Other income (expense), net

 

 

10,659

 

 

 

9,101

 

 

 

21,978

 

 

 

16,429

 

Income before income tax expense

 

$

124,710

 

 

$

85,608

 

 

$

249,858

 

 

$

159,115

 

Net income

 

$

99,624

 

 

$

66,472

 

 

$

197,207

 

 

$

125,790

 

Earnings per share – basic and diluted

 

$

10.36

 

 

$

6.54

 

 

$

20.45

 

 

$

12.28

 

NEWMARKET CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per-share amounts, unaudited)

 

 

 

Second Quarter Ended

June 30,

 

Six Months Ended

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Net sales

 

$

685,130

 

$

723,639

 

$

1,387,919

 

$

1,386,191

Cost of goods sold

 

 

489,492

 

 

566,163

 

 

994,237

 

 

1,073,552

Gross profit

 

 

195,638

 

 

157,476

 

 

393,682

 

 

312,639

Selling, general, and administrative expenses

 

 

37,438

 

 

38,489

 

 

77,285

 

 

74,111

Research, development, and testing expenses

 

 

33,958

 

 

35,396

 

 

67,114

 

 

71,647

Operating profit

 

 

124,242

 

 

83,591

 

 

249,283

 

 

166,881

Interest and financing expenses, net

 

 

10,255

 

 

7,084

 

 

21,028

 

 

16,490

Loss on early extinguishment of debt

 

 

0

 

 

0

 

 

0

 

 

7,545

Other income (expense), net

 

 

10,723

 

 

9,101

 

 

21,603

 

 

16,269

Income before income tax expense

 

 

124,710

 

 

85,608

 

 

249,858

 

 

159,115

Income tax expense

 

 

25,086

 

 

19,136

 

 

52,651

 

 

33,325

Net income

 

$

99,624

 

$

66,472

 

$

197,207

 

$

125,790

Earnings per share – basic and diluted

 

$

10.36

 

$

6.54

 

$

20.45

 

$

12.28

Cash dividends declared per share

 

$

2.25

 

$

2.10

 

$

4.35

 

$

4.20

NEWMARKET CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts, unaudited)

 

 

 

June 30,

2023

 

December 31,

2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

130,923

 

 

$

68,712

 

Trade and other accounts receivable, less allowance for credit losses

 

 

436,250

 

 

 

453,692

 

Inventories

 

 

537,380

 

 

 

631,383

 

Prepaid expenses and other current assets

 

 

35,550

 

 

 

38,338

 

Total current assets

 

 

1,140,103

 

 

 

1,192,125

 

Property, plant, and equipment, net

 

 

655,864

 

 

 

659,998

 

Intangibles (net of amortization) and goodwill

 

 

125,424

 

 

 

126,069

 

Prepaid pension cost

 

 

318,765

 

 

 

302,584

 

Operating lease right-of-use assets, net

 

 

62,381

 

 

 

62,417

 

Deferred charges and other assets

 

 

63,607

 

 

 

63,625

 

Total assets

 

$

2,366,144

 

 

$

2,406,818

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

222,969

 

 

$

273,289

 

Accrued expenses

 

 

72,923

 

 

 

89,508

 

Dividends payable

 

 

18,898

 

 

 

17,850

 

Income taxes payable

 

 

8,522

 

 

 

16,109

 

Operating lease liabilities

 

 

14,525

 

 

 

15,569

 

Other current liabilities

 

 

11,201

 

 

 

11,562

 

Total current liabilities

 

 

349,038

 

 

 

423,887

 

Long-term debt

 

 

916,179

 

 

 

1,003,737

 

Operating lease liabilities – noncurrent

 

 

47,715

 

 

 

46,968

 

Other noncurrent liabilities

 

 

160,472

 

 

 

169,819

 

Total liabilities

 

 

1,473,404

 

 

 

1,644,411

 

Shareholders’ equity:

 

 

 

 

Common stock and paid-in capital (with no par value; issued and outstanding shares – 9,589,239 at June 30, 2023 and 9,702,147 at December 31, 2022)

 

 

0

 

 

 

0

 

Accumulated other comprehensive loss

 

 

(54,757

)

 

 

(71,995

)

Retained earnings

 

 

947,497

 

 

 

834,402

 

Total shareholders’ equity

 

 

892,740

 

 

 

762,407

 

Total liabilities and shareholders’ equity

 

$

2,366,144

 

 

$

2,406,818

 

NEWMARKET CORPORATION AND SUBSIDIARIES

SELECTED CONSOLIDATED CASH FLOW DATA

(In thousands, unaudited)

 

 

 

Six Months Ended

June 30,

 

 

 

2023

 

 

 

2022

 

Net income

 

$

197,207

 

 

$

125,790

 

Depreciation and amortization

 

 

40,558

 

 

 

41,670

 

Loss on early extinguishment of debt

 

 

0

 

 

 

7,545

 

Loss on marketable securities

 

 

0

 

 

 

2,977

 

Cash pension and postretirement contributions

 

 

(5,020

)

 

 

(4,863

)

Working capital changes

 

 

52,494

 

 

 

(114,665

)

Deferred income tax benefit

 

 

(11,301

)

 

 

(21,036

)

Purchases of marketable securities

 

 

0

 

 

 

(787

)

Proceeds from sales and maturities of marketable securities

 

 

0

 

 

 

372,846

 

Capital expenditures

 

 

(26,006

)

 

 

(27,807

)

Redemption of 4.10% senior notes

 

 

0

 

 

 

(350,000

)

Cash costs of 4.10% senior notes redemption

 

 

0

 

 

 

(7,099

)

Net (repayments) borrowings under revolving credit facility

 

 

(88,000

)

 

 

121,000

 

Repurchases of common stock

 

 

(42,864

)

 

 

(90,782

)

Dividends paid

 

 

(41,879

)

 

 

(42,860

)

All other

 

 

(12,978

)

 

 

(15,742

)

Increase (decrease) in cash and cash equivalents

 

$

62,211

 

 

$

(3,813

)

NEWMARKET CORPORATION AND SUBSIDIARIES

NON-GAAP FINANCIAL INFORMATION

(In thousands, unaudited)

 

Earnings Before Interest, Depreciation, and Amortization (EBITDA)

 

 

 

 

 

 

Second Quarter Ended

June 30,

 

Six Months Ended

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Net Income

 

$

99,624

 

$

66,472

 

$

197,207

 

$

125,790

Add:

 

 

 

 

 

 

 

 

Interest and financing expenses, net

 

 

10,255

 

 

7,084

 

 

21,028

 

 

16,490

Income tax expense

 

 

25,086

 

 

19,136

 

 

52,651

 

 

33,325

Depreciation and amortization

 

 

19,897

 

 

20,251

 

 

39,863

 

 

40,855

EBITDA

 

$

154,862

 

$

112,943

 

$

310,749

 

$

216,460

 

 

 

 

 

 

 

 

 

Net Debt to EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

Long-term debt, including current maturities

 

 

 

 

 

$

916,179

 

$

1,003,737

Less: Cash and cash equivalents

 

 

 

 

 

 

130,923

 

 

68,712

Net Debt

 

 

 

 

 

$

785,256

 

$

935,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rolling Four Quarters Ended

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2023

 

2022

Net Income

 

 

 

 

 

$

350,955

 

$

279,538

Add:

 

 

 

 

 

 

 

 

Interest and financing expenses, net

 

 

 

 

 

 

39,740

 

 

35,202

Income tax expense

 

 

 

 

 

 

87,522

 

 

68,196

Depreciation and amortization

 

 

 

 

 

 

79,783

 

 

80,775

EBITDA-Rolling Four Quarters

 

 

 

 

 

$

558,000

 

$

463,711

 

 

 

 

 

 

 

 

 

Net Debt to EBITDA

 

 

 

 

 

 

1.4

 

 

2.0

 

William J. Skrobacz

Investor Relations

Phone: 804.788.5555

Fax: 804.788.5688

Email: [email protected]

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Oil/Gas Manufacturing Energy Other Energy Chemicals/Plastics

MEDIA:

Posted on

Methanex Reports Second Quarter 2023 Results

Except where otherwise noted, all currency amounts are stated in United States dollars.

  • Net income attributable to Methanex shareholders of $57 million and Adjusted EBITDA of $160 million in the second quarter. The average realized price in the second quarter was $338 per tonne compared to $371 per tonne in the first quarter of 2023.
  • Geismar 3 (“G3”) project is approximately 90% complete and is progressing safely, on time and on budget. Production expected in the fourth quarter of 2023. The remaining cash spend of $240 – 290 million is fully funded with cash on hand.
  • Returned $51 million to shareholders through dividends and share repurchases and ended the second quarter with $646 million in cash.

VANCOUVER, British Columbia, July 26, 2023 (GLOBE NEWSWIRE) — For the second quarter of 2023, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $57 million ($0.73 net income per common share on a diluted basis) compared to net income of $60 million ($0.87 net income per common share on a diluted basis) in the first quarter of 2023. Net income in the second quarter of 2023 was lower compared to the prior quarter primarily due to a lower average realized price, partially offset by the mark-to-market impact of share-based compensation due to changes in Methanex’s share price. Adjusted EBITDA for the second quarter of 2023 was $160 million and Adjusted net income was $41 million ($0.60 Adjusted net income per common share). This compares with Adjusted EBITDA of $209 million and Adjusted net income of $76 million ($1.11 Adjusted net income per common share) for the first quarter of 2023.

Our average realized price in the second quarter was $338 per tonne compared to $371 per tonne in the first quarter of 2023. The decline in the average realized price was driven by global methanol supply outpacing demand growth and lower global energy prices leading to a decrease in the methanol cost curve and MTO affordability.

During the quarter, we returned $51 million to shareholders through the regular dividend and share repurchases. With continued macro uncertainty and the impact of declining methanol prices through the second quarter, we ceased share repurchases under the current normal course issuer bid which expires in September 2023. We ended the quarter with $646 million in cash, or approximately $589 million in cash excluding non-controlling interests and including our share of cash in the Atlas joint venture. We also have an undrawn $300 million revolving credit facility that provides additional financial flexibility.

Rich Sumner, President & CEO of Methanex, said, “We remain focused on delivering strong operational results from our existing assets and maintaining financial flexibility. Our key strategic priority is completing the G3 project safely, on time and on budget in the fourth quarter of this year. “

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex’s key financial and operational data for the second quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the second quarter 2023 Management’s Discussion and Analysis (“MD&A”) dated July 26, 2023 and the unaudited condensed consolidated interim financial statements for the period ended June 30, 2023, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended June 30, 2023 are also available on the Canadian Securities Administrators’ SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission’s EDGAR website at www.sec.gov.

FINANCIAL AND OPERATIONAL DATA

  Three Months Ended   Six Months Ended
($ millions except per share amounts and where noted) Jun 30

2023 		Mar 31
2023		 Jun 30
2022		   Jun 30

2023 		Jun 30
2022
Production (thousands of tonnes) (attributable to Methanex shareholders)1 1,658 1,660 1,551   3,318 3,340
Sales volume (thousands of tonnes)            
Methanex-produced methanol 1,621 1,649 1,634   3,270 3,431
Purchased methanol 884 848 798   1,732 1,480
Commission sales 277 308 260   585 539
Total sales volume1 2,782 2,805 2,692   5,587 5,450
             
Methanex average non-discounted posted price ($ per tonne)2 450 471 548   460 534
Average realized price ($ per tonne)3 338 371 422   354 424
             
Revenue 939 1,038 1,137   1,978 2,313
Net income (attributable to Methanex shareholders) 57 60 125   116 244
Adjusted net income4 41 76 84   117 244
Adjusted EBITDA4 160 209 243   369 580
Cash flows from operating activities 196 162 106   359 432
             
Basic net income per common share 0.84 0.87 1.74   1.71 3.34
Diluted net income per common share 0.73 0.87 1.41   1.70 3.28
Adjusted net income per common share4 0.60 1.11 1.16   1.70 3.32
             
Common share information (millions of shares)            
Weighted average number of common shares 68 69 72   68 73
Diluted weighted average number of common shares 68 69 72   68 73
Number of common shares outstanding, end of period 67 68 71   67 71

1  Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own.

2  Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe, China and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com.

3  The Company has used Average realized price (“ARP”) throughout this document. ARP is calculated as revenue divided by the total sales volume. It is used by management to assess the realized price per unit of methanol sold, and is relevant in a cyclical commodity environment where revenue can fluctuate in response to market prices.

4 Note that Adjusted net income, Adjusted net income per common share, and Adjusted EBITDA are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to the Non-GAAP Measures section on page 14 of our second quarter MD&A dated July 26, 2023 for a description of each non-GAAP measure.

  • A reconciliation from net income attributable to Methanex shareholders to Adjusted EBITDA, Adjusted net income and the calculation of Adjusted net income per common share is as follows:
  Three Months Ended   Six Months Ended
($ millions) Jun 30

2023 		Mar 31
2023		 Jun 30
2022		   Jun 30

2023 		Jun 30
2022
Net income attributable to Methanex shareholders $ 57   $ 60   $ 125     $ 116   $ 244  
Mark-to-market impact of share-based compensation   (15 )   20     (47 )     5     1  
Depreciation and amortization   95     98     94       193     186  
Finance costs   30     31     33       61     67  
Finance income (loss) and other expenses   (16 )   (11 )   3       (27 )   3  
Income tax expense   19     14     37       33     79  
Earnings of associate adjustment   10     19     18       30     39  
Non-controlling interests adjustment   (20 )   (22 )   (20 )     (42 )   (39 )
Adjusted EBITDA attributable to Methanex shareholders $ 160   $ 209   $ 243     $ 369   $ 580  

  Three Months Ended   Six Months Ended
($ millions except number of shares and per share amounts) Jun 30

2023 		Mar 31
2023		 Jun 30
2022		   Jun 30

2023 		Jun 30
2022
Net income attributable to Methanex shareholders $ 57   $ 60   $ 125     $ 116   $ 244  
Mark-to-market impact of share-based compensation, net of tax   (13 )   17     (41 )     5     —  
Impact of Egypt gas contract revaluation, net of tax   (3 )   (1 )   —       (4 )   —  
Adjusted net income $ 41   $ 76   $ 84     $ 117   $ 244  
Diluted weighted average shares outstanding (millions)   68     69     72       68     73  
Adjusted net income per common share $ 0.60   $ 1.11   $ 1.16     $ 1.70   $ 3.32  
  • We recorded net income attributable to Methanex shareholders of $57 million in the second quarter of 2023 compared to net income of $60 million in the first quarter of 2023. Net income in the second quarter of 2023 was lower compared to the prior quarter primarily due to a lower average realized price, partially offset by the mark-to-market impact of share-based compensation due to changes in Methanex’s share price.
  • We recorded Adjusted EBITDA of $160 million for the second quarter of 2023 compared to $209 million for the first quarter of 2023. We recorded Adjusted net income of $41 million for the second quarter of 2023 compared to Adjusted net income of $76 million for the first quarter of 2023. Adjusted EBITDA was lower in the second quarter of 2023 primarily due to a lower average realized price.
  • We sold 2,782,000 tonnes in the second quarter of 2023 compared to 2,805,000 tonnes for the first quarter of 2023. Sales of Methanex-produced methanol were 1,621,000 tonnes in the second quarter of 2023 compared to 1,649,000 tonnes in the first quarter of 2023.
  • Production for the second quarter of 2023 was 1,658,000 tonnes compared to 1,660,000 tonnes for the first quarter of 2023. Production for the second quarter of 2023 was comparable to the first quarter of 2023 as higher production in Geismar was offset by lower production in Chile.
  • The Geismar 3 project is progressing safely, on time and on budget with methanol production expected in the fourth quarter of 2023 with an expected total capital cost of $1.25 – 1.3 billion. The remaining cash expenditure of approximately $240 to $290 million, including approximately $65 million of spending accrued in accounts payable, is fully funded with cash on hand. Along with significantly enhancing our cash generation capability, Geismar 3 will have one of the lowest CO2 emissions intensity profiles in the industry, helping us meet our commitment to reduce our greenhouse gas emissions intensity.
  • To June 30, 2023, we have repurchased 2,787,484 common shares of 3,506,405 permitted under our current normal course issuer bid for $119 million, an average purchase price of approximately $43 per share. During the second quarter of 2023, we purchased 864,052 shares for $38 million.
  • In the second quarter of 2023 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million.
  • At June 30, 2023, we had a strong liquidity position including a cash balance of $646 million, or approximately $589 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. We also have access to an undrawn $300 million revolving credit facility providing financial flexibility.

PRODUCTION HIGHLIGHTS

  Q2 2023 Q1 2023 Q2 2022 YTD Q2 2023 YTD Q2 2022
(thousands of tonnes) Operating

Capacity

1
 		Production Production Production Production Production
USA (Geismar) 550 532 449 556 981 1,112
New Zealand2 550 408 403 244 811 630
Trinidad (Methanex interest)3 490 248 256 249 504 507
Chile 425 173 249 197 422 521
Egypt (50% interest) 158 163 161 150 324 254
Canada (Medicine Hat) 160 134 142 155 276 316
  2,333 1,658 1,660 1,551 3,318 3,340

1  The operating capacity of our production facilities may be higher or lower than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas availability, feedstock composition, the age of the facility’s catalyst, turnarounds and access to CO2 from external suppliers for certain facilities. We review and update the operating capacity of our production facilities on a regular basis based on historical performance. 

2  The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility. The Waitara Valley plant is idled indefinitely due to natural gas constraints.

3  The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities. The Titan plant is idled indefinitely due to natural gas constraints.

Key production and operational highlights during the second quarter and production outlook for 2023 include:

United States

Geismar produced 532,000 tonnes in the second quarter compared to 449,000 tonnes in the first quarter of 2023. Production in the second quarter was impacted by a 10-day outage at G2 for maintenance activities but was higher than the first quarter which was impacted by a planned turnaround at G1.

New Zealand

New Zealand produced 408,000 tonnes in the second quarter of 2023 compared to 403,000 tonnes in the first quarter of 2023. We estimate production for 2023 will be between 1.3 – 1.4 million tonnes as Q3 2023 production will be impacted by a planned turnaround. Waitara Valley remains idled indefinitely.

Trinidad

Atlas produced 248,000 tonnes (Methanex interest) in the second quarter of 2023 compared to 256,000 tonnes in the first quarter of 2023. Production was lower in the second quarter as the second quarter was impacted by an unplanned outage in April. Titan remains idled indefinitely.

Chile

Chile produced 173,000 tonnes in the second quarter of 2023 compared to 249,000 tonnes in the first quarter of 2023. Production was lower in the second quarter as our Chile plants ran at reduced rates or were shut down for a portion of the second quarter due to seasonal gas limitations during the Southern hemisphere winter months, when domestic natural gas demand is high. We are undertaking a planned turnaround at Chile I which is scheduled to be completed in August and expect to operate one plant through the remainder of the Southern hemisphere winter. We estimate Chile production in 2023 will be between 0.8 – 0.9 million tonnes.

Egypt

Egypt produced 326,000 tonnes (Methanex interest – 163,000 tonnes) in the second quarter of 2023 compared to 322,000 tonnes (Methanex interest – 161,000 tonnes) in the first quarter of 2023.

Canada

Medicine Hat produced 134,000 tonnes in the second quarter of 2023 compared to 142,000 tonnes in the first quarter of 2023. Production was lower in the second quarter due to an unplanned outage in April.

2023 Production Outlook

Forecasted production for 2023 is approximately 6.5 million equity tonnes, excluding any production from G3. Actual production may vary by quarter based on timing of turnarounds, gas availability, unplanned outages and unanticipated events.

CONFERENCE CALL

A conference call is scheduled for July 27, 2023 at 11:00 am ET (8:00 am PT) to review these second quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (646) 960-0479, or toll free at (888) 510-2296. The conference ID for the call is #7014770. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com/investor-relations/events and will also be available following the call.

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the NASDAQ Global Market in the United States under the trading symbol “MEOH”.

FORWARD-LOOKING INFORMATION WARNING

This second quarter 2023 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company’s control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the second quarter 2023 Management’s Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators’ SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission’s EDGAR website at www.sec.gov.

NON-GAAP MEASURES

The Company has used the terms Adjusted EBITDA, Adjusted net income, and Adjusted net income per common share throughout this document. These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price, the impact of the Egypt gas contract revaluation and the impact of certain items associated with specific identified events. Refer to Additional Information – Non-GAAP Measures on page 14 of the Company’s MD&A for the period ended June 30, 2023 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

For further information, contact:

Sarah Herriott
Director, Investor Relations
Methanex Corporation
604-661-2600

 



Posted on

LTC Names David Gruber to Board of Directors

LTC Names David Gruber to Board of Directors

WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–LTC Properties Inc. (NYSE: LTC), a real estate investment trust that invests in seniors housing and health care properties, today announced that David Gruber has been elected to its Board of Directors effective July 25, 2023, increasing the total number of directors from six to seven, six of whom are independent.

Gruber, 53, is a qualified financial expert with significant corporate finance, governance and compliance expertise, having served as Managing Director, Head of Equity Capital Markets for KeyBanc Capital Markets for more than 20 years, where he chaired and was a member of the bank’s Equity Commitment and Capital Commitment Committees. Under his leadership, Gruber’s team helped execute more than 1,100 equity transactions, raising in excess of $500 billion in equity capital.

“We are thrilled to welcome David to our Board. He brings significant experience in equity capital markets, REIT and other industry financings and talent management, which should serve us well as we continue to implement our growth strategy,” said Wendy Simpson, LTC’s Chairman and Chief Executive Officer. “We began our relationship with David nearly 20 years ago when he worked with us as an investment banker, and have been impressed with his financial acumen and knowledge of our industry since then. Additionally, his ability to bring an astute investor and capital markets lens to public companies, while developing and implementing business strategy, will create added perspective for us.”

Gruber holds a B.S. in Finance from Kent State University, and is currently a member of the advisory board for Cleveland Central Catholic High School in Cleveland, Ohio. He also has served on numerous nonprofit organization boards in recent years.

About LTC

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC’s investment portfolio includes 212 properties in 29 states with 30 operating partners. Based on its gross real estate investments, LTC’s investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.

Forward-Looking Statements

This press release includes statements that are not purely historical and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Please see LTC’s most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward-looking statements included in this press release are based on information available to the Company on the date hereof, and LTC assumes no obligation to update such forward-looking statements. Although the Company’s management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.

For more information contact:

Mandi Hogan

(805) 981-8655

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Professional Services Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property REIT

MEDIA:

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Posted on

The Trade Desk Announces Date of Second Quarter 2023 Financial Results and Conference Call

The Trade Desk Announces Date of Second Quarter 2023 Financial Results and Conference Call

LOS ANGELES–(BUSINESS WIRE)–
The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced that it will release financial results for the second quarter ended June 30, 2023 after the market closes on Wednesday, August 9, 2023. The Trade Desk will host a webcast and conference call to discuss second quarter financial results at 2:00 P.M. Pacific Time.

Webcast and Conference Call Details

  • When: August 9, 2023 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time).
  • Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk’s website at http://investors.thetradedesk.com/. Following the call, a replay will be available on the company’s website.
  • Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code “192228” after dialing in.
  • Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 48706). Outside the United States, please dial 1-919-882-2331 (replay code: 48706). The audio replay will be available via telephone until August 16, 2023.

About The Trade Desk

The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, LinkedIn and YouTube.

Investors

Jake Graves

Manager, Investor Relations

The Trade Desk

[email protected]

312-620-0806

Media

Melinda Zurich

VP, Communications

The Trade Desk

[email protected]

201-320-9398

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Technology Content Marketing Other Communications Communications Software Digital Marketing Social Media Data Management Search Engine Marketing Artificial Intelligence

MEDIA:

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The ODP Corporation to Announce Second Quarter 2023 Results Wednesday, August 9, 2023

The ODP Corporation to Announce Second Quarter 2023 Results Wednesday, August 9, 2023

BOCA RATON, Fla.–(BUSINESS WIRE)–
The ODP Corporation (“ODP,” or the “Company”) (NASDAQ:ODP), a leading provider of business services, products and digital workplace technology solutions to businesses and consumers will announce second quarter 2023 financial results before the market open on Wednesday, August 9th, 2023. The ODP Corporation will webcast a call with financial analysts and investors that day at 9:00 am Eastern Time which will be accessible to the media and the general public.

To listen to the conference call via webcast, please visit The ODP Corporation’s Investor relations website at investor.theodpcorp.com. A replay of the webcast will be available approximately two hours following the event. A copy of the earnings press release, supplemental financial disclosures and presentation will also be available on the website.

About The ODP Corporation

The ODP Corporation (NASDAQ:ODP) is a leading provider of products and services through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; Veyer, LLC; and Varis, Inc., The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.

ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. Varis is a trademark of Varis Inc. Grand&Toy is a trademark of Grand & Toy, LLC in Canada. Any other product or company names mentioned herein are the trademarks of their respective owners.

Tim Perrott

Investor Relations

561-438-4629

[email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Technology Other Communications Office Products Public Relations/Investor Relations Communications Specialty Supply Chain Management Retail Consumer Electronics Online Retail

MEDIA:

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Largo Publishes 2022 Sustainability Report

Largo Publishes 2022 Sustainability Report

TORONTO–(BUSINESS WIRE)–
Largo Inc. (“Largo” or the “Company”) (TSX: LGO) (NASDAQ: LGO) is pleased to announce it has published its Sustainability Report for the year ended December 31, 2022, outlining its activities across its mining operation in Brazil and clean energy business in the United States.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230726660315/en/

Largo Publishes 2022 Sustainability Report (Photo: Business Wire)

Largo Publishes 2022 Sustainability Report (Photo: Business Wire)

J. Alberto Arias, Chairman of Largo commented: “We are immensely proud of Largo’s accomplishments in 2022, which are guided by sustainable development best practices. In Brazil, this progress has specifically benefited local communities near our operational site and our clean energy business is expected to bring global positive impacts to the economy, people and the environment as it continues development.”

He continued: “We issued our first climate change report in 2022, aligned with the Taskforce on Climate-related Financial Disclosures (TCFD). We have also enshrined our respect for human rights and diversity in a new People and Human Rights Policy and Board and Executive Diversity Policy, and will continue to formalize our commitments on critical sustainable topics such as biodiversity and procurement as we continue our ongoing sustainability efforts.”

He concluded: “As we move forward in the year ahead, focus on transparency and accountability to the highest standards of safety and sustainability remain paramount. We look forward to continuing the development of our sustainability programs, creating local, regional and global sustainable development.”

Largo’s 2022 Sustainability Report has been compiled in accordance with the Global Reporting Initiative (“GRI”) Standards, as well as Sustainability Accounting Standards Board (“SASB”) Metals & Mining Industry Standard requirements.

Download Largo’s 2022 Sustainability Report:

www.largoinc.com/sustainability/overview

Download Largo’s 2022 Taskforce on Climate-related Financial Disclosures Report:

www.largoinc.com/sustainability/reports-data

About Largo

Largo has a long and successful history as one of the world’s preferred vanadium companies through the supply of its VPURETM and VPURE+TM products, which are sourced from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine in Brazil. Aiming to enhance value creation at Largo, the Company is in the process of implementing an ilmenite concentrate plant using feedstock sourced from its existing operations in addition to advancing its U.S.-based clean energy division with its VCHARGE vanadium batteries. Largo’s VCHARGE vanadium batteries contain a variety of innovations, enabling an efficient, safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year lifespan. Producing some of the world’s highest quality vanadium, Largo’s strategic business plan is based on two pillars: 1.) leading vanadium supplier with an outlined growth plan and 2.) U.S.-based energy storage business to support a low carbon future.

Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol “LGO”. For more information on the Company, please visit www.largoinc.com.

Cautionary Statement on Forward-looking Information:

This press release contains forward-looking information under applicable securities legislation (“forward-looking information”). Forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedar.com and www.sec.gov from time to time. Forward-looking information are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-looking information. Largo does not undertake to update any forward-looking information, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As which also apply.

Trademarks are owned by Largo Inc.

For further information, please contact:

Investor Relations

Alex Guthrie

Senior Manager, External Relations

+1.416.861.9778

[email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Environment Technology Alternative Energy Green Technology Energy Other Natural Resources Batteries Mining/Minerals Natural Resources

MEDIA:

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Largo Publishes 2022 Sustainability Report (Photo: Business Wire)
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International Seaways to Announce Second Quarter 2023 Results on August 9, 2023

International Seaways to Announce Second Quarter 2023 Results on August 9, 2023

NEW YORK–(BUSINESS WIRE)–
International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”) announced today that it plans to release second quarter 2023 results before market open on Wednesday, August 9, 2023. The Company will host a conference call for investors at 9:00 a.m. Eastern Time (“ET”) on the same day.

Conference Call Details:

Date:

Wednesday, August 9, 2023

Time

9:00 AM ET

Dial-in Numbers

US: +1 (833) 470-1428

 

International: +1 (929) 526-1599

Conference ID

221822

A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at https://www.intlseas.com/.

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Wednesday, August 9, 2023 through 11:59 p.m. ET on Wednesday, August 16, 2023 by dialing +1 (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 318908.

About International Seaways, Inc.

International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 75 vessels, including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, seven LR1s and 37 MR tankers. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the U.S. Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the consequences of the Company’s merger with Diamond S and plans to issue dividends, its prospects, including statements regarding vessel acquisitions, expected synergies, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2022 for the Company, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

Investor Relations & Media:

Tom Trovato, International Seaways, Inc.

(212) 578-1602

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Maritime Energy Transport Oil/Gas

MEDIA:

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Hawthorn Bancshares Announces Cash Dividend

JEFFERSON CITY, Mo., July 26, 2023 (GLOBE NEWSWIRE) — Hawthorn Bancshares, Inc. (NASDAQ: HWBK) announced today that its Board of Directors approved a quarterly cash dividend of $0.17 per common share, payable October 1, 2023 to shareholders of record at the close of business on September 15, 2023.

About Hawthorn Bancshares, Inc.

Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank of Jefferson City, Missouri with additional locations in the Missouri communities of Lee’s Summit, Liberty, St. Louis, Springfield, Independence, Columbia, Clinton, Osceola, Warsaw, Belton, Drexel, Harrisonville, California and St. Robert, Missouri.

Statements made in this press release that suggest Hawthorn Bancshares’ or management’s intentions, hopes, beliefs, expectations, or predictions of the future include “forward-looking statements” within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law. 



Contact:

Hawthorn Bancshares, Inc.
Stephen E. Guthrie
Chief Financial Officer
TEL: 573.761.6100
Fax: 573.761.6272
www.HawthornBancshares.com