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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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20-1380758
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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259 Prospect Plains Road
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Cranbury
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New Jersey
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08512
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(Address of Principal Executive Offices)
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(Zip Code)
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Securities registered pursuant to section 12(b) of the Act:
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Title of each class
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Trading symbol(s)
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Name of exchange on which registered
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Common Stock, $0.001 par value
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IPHS
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Nasdaq Global Select Market
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Large Accelerated Filer
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☒
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Accelerated Filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Financial Information
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Other Information
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Item 1.
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||
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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ITEM 1.
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FINANCIAL STATEMENTS
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June 30,
2019 |
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December 31,
2018 |
||||
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ASSETS
|
|
|
|
||||
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Current assets:
|
|
|
|
||||
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Cash and cash equivalents
|
$
|
32,040
|
|
|
$
|
20,197
|
|
|
Accounts receivable, net of allowance for doubtful accounts ($852 and $688)
|
98,957
|
|
|
102,564
|
|
||
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Inventories
|
172,455
|
|
|
180,203
|
|
||
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Other current assets
|
37,012
|
|
|
24,094
|
|
||
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Total current assets
|
340,464
|
|
|
327,058
|
|
||
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Property, plant and equipment, net
|
235,349
|
|
|
240,235
|
|
||
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Lease right-of-use assets
|
51,604
|
|
|
—
|
|
||
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Goodwill
|
152,767
|
|
|
152,767
|
|
||
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Intangibles and other assets, net
|
89,971
|
|
|
95,094
|
|
||
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Total assets
|
$
|
870,155
|
|
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$
|
815,154
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
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Current liabilities:
|
|
|
|
||||
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Accounts payable, trade and other
|
$
|
51,297
|
|
|
$
|
80,007
|
|
|
Other current liabilities
|
67,993
|
|
|
49,993
|
|
||
|
Total current liabilities
|
119,290
|
|
|
130,000
|
|
||
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Long-term debt
|
330,000
|
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|
300,000
|
|
||
|
Long-term lease liabilities
|
45,478
|
|
|
—
|
|
||
|
Other long-term liabilities
|
36,200
|
|
|
49,639
|
|
||
|
Total liabilities
|
$
|
530,968
|
|
|
$
|
479,639
|
|
|
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
|
Common stock, par value $.001 per share; authorized 100,000,000; issued 23,042,492 and 22,984,608; outstanding 19,691,124 and 19,613,085 shares
|
$
|
20
|
|
|
$
|
20
|
|
|
Paid-in capital
|
146,107
|
|
|
142,558
|
|
||
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Common stock held in treasury, at cost (3,351,368 and 3,371,523 shares)
|
(177,097
|
)
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|
(176,862
|
)
|
||
|
Retained earnings
|
375,960
|
|
|
372,815
|
|
||
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Accumulated other comprehensive loss
|
(5,803
|
)
|
|
(3,016
|
)
|
||
|
Total stockholders' equity
|
339,187
|
|
|
335,515
|
|
||
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Total liabilities and stockholders' equity
|
$
|
870,155
|
|
|
$
|
815,154
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
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|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
Net sales
|
$
|
185,038
|
|
|
$
|
206,725
|
|
|
$
|
376,452
|
|
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$
|
412,165
|
|
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Cost of goods sold
|
148,646
|
|
|
170,340
|
|
|
303,648
|
|
|
333,553
|
|
||||
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Gross profit
|
36,392
|
|
|
36,385
|
|
|
72,804
|
|
|
78,612
|
|
||||
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Operating expenses:
|
|
|
|
|
|
|
|
||||||||
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Selling, general and administrative
|
20,261
|
|
|
22,503
|
|
|
39,703
|
|
|
45,023
|
|
||||
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Research & development expenses
|
1,232
|
|
|
1,338
|
|
|
2,572
|
|
|
2,749
|
|
||||
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Total operating expenses
|
21,493
|
|
|
23,841
|
|
|
42,275
|
|
|
47,772
|
|
||||
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Operating income
|
14,899
|
|
|
12,544
|
|
|
30,529
|
|
|
30,840
|
|
||||
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Interest expense, net
|
3,887
|
|
|
3,198
|
|
|
7,589
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|
6,102
|
|
||||
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Foreign exchange (gain) loss
|
(470
|
)
|
|
1,136
|
|
|
(851
|
)
|
|
940
|
|
||||
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Other (income), net
|
(8
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|
(28
|
)
|
||||
|
Income before income taxes
|
11,490
|
|
|
8,223
|
|
|
23,802
|
|
|
23,826
|
|
||||
|
Provision for income taxes
|
10,089
|
|
|
1,977
|
|
|
13,707
|
|
|
6,665
|
|
||||
|
Net income
|
$
|
1,401
|
|
|
$
|
6,246
|
|
|
$
|
10,095
|
|
|
$
|
17,161
|
|
|
Net income attributable to participating common shareholders
|
$
|
1,381
|
|
|
$
|
6,213
|
|
|
$
|
10,057
|
|
|
$
|
17,106
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Per share data (Note 3):
|
|
|
|
|
|
|
|
||||||||
|
Income per participating share:
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
$
|
0.07
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
0.88
|
|
|
Diluted
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
$
|
0.51
|
|
|
$
|
0.87
|
|
|
Weighted average participating shares outstanding:
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
19,572,648
|
|
|
19,505,877
|
|
|
19,571,742
|
|
|
19,503,755
|
|
||||
|
Diluted
|
19,776,845
|
|
|
19,818,883
|
|
|
19,715,907
|
|
|
19,765,971
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
|
Change in interest rate swaps, (net of tax of $466, $0, $691, and $0)
|
$
|
(1,397
|
)
|
|
$
|
—
|
|
|
$
|
(2,073
|
)
|
|
$
|
—
|
|
|
Change in pension and post-retirement plans, (net of tax of $15, ($30), $32, and $213)
|
(662
|
)
|
|
94
|
|
|
(714
|
)
|
|
483
|
|
||||
|
Other comprehensive income (loss), net of tax
|
$
|
(2,059
|
)
|
|
$
|
94
|
|
|
$
|
(2,787
|
)
|
|
$
|
483
|
|
|
Comprehensive (loss) income
|
$
|
(658
|
)
|
|
$
|
6,340
|
|
|
$
|
7,308
|
|
|
$
|
17,644
|
|
|
|
Six months ended
|
||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Cash flows provided by operating activities
|
|
|
|
||||
|
Net income
|
$
|
10,095
|
|
|
$
|
17,161
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation and amortization
|
20,646
|
|
|
22,453
|
|
||
|
Amortization of deferred financing charges
|
215
|
|
|
215
|
|
||
|
Deferred income tax provision
|
208
|
|
|
97
|
|
||
|
Dutch income tax liability
|
6,603
|
|
|
—
|
|
||
|
Share-based compensation
|
3,567
|
|
|
2,992
|
|
||
|
Changes in assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
3,607
|
|
|
(8,110
|
)
|
||
|
Inventories
|
7,748
|
|
|
(13,136
|
)
|
||
|
Other current assets
|
(12,918
|
)
|
|
(4,481
|
)
|
||
|
Accounts payable
|
(24,129
|
)
|
|
(2,692
|
)
|
||
|
Other current liabilities
|
4,226
|
|
|
(718
|
)
|
||
|
Other long-term assets and liabilities, net
|
(3,087
|
)
|
|
(4,224
|
)
|
||
|
Net cash provided by operating activities
|
16,781
|
|
|
9,557
|
|
||
|
Cash flows used for investing activities:
|
|
|
|
||||
|
Capital expenditures
|
(15,837
|
)
|
|
(26,475
|
)
|
||
|
Net cash used for investing activities
|
(15,837
|
)
|
|
(26,475
|
)
|
||
|
Cash flows provided by financing activities:
|
|
|
|
||||
|
Long-term debt borrowings
|
37,000
|
|
|
61,000
|
|
||
|
Long-term debt repayments
|
(7,000
|
)
|
|
(41,000
|
)
|
||
|
Restricted stock forfeitures
|
(235
|
)
|
|
(251
|
)
|
||
|
Dividends paid
|
(18,866
|
)
|
|
(18,782
|
)
|
||
|
Net cash provided by financing activities
|
10,899
|
|
|
967
|
|
||
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
(559
|
)
|
||
|
Net change in cash
|
11,843
|
|
|
(16,510
|
)
|
||
|
Cash and cash equivalents at beginning of period
|
20,197
|
|
|
28,782
|
|
||
|
Cash and cash equivalents at end of period
|
$
|
32,040
|
|
|
$
|
12,272
|
|
|
|
|
|
|
||||
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
|
Non-cash investing and financing activities:
|
|
|
|
||||
|
Accrued additions to plant assets
|
$
|
4,824
|
|
|
$
|
12,121
|
|
|
|
Number of
Common
Shares
|
|
Common
Stock
|
|
Retained
Earnings (Deficit)
|
|
Paid-in
Capital / Common stock held in treasury
|
|
Accumulated
Other
Comprehensive
Income/(Loss)
|
|
Total
Shareholders'
Equity
|
|||||||||||
|
Balance, December 31, 2017
|
19,538
|
|
|
$
|
20
|
|
|
$
|
374,366
|
|
|
$
|
(38,629
|
)
|
|
$
|
(2,198
|
)
|
|
$
|
333,559
|
|
|
Net income
|
|
|
|
|
17,161
|
|
|
|
|
|
|
17,161
|
|
|||||||||
|
Other comprehensive income, (net of tax $213) (a)
|
|
|
|
|
|
|
|
|
483
|
|
|
483
|
|
|||||||||
|
Effects of U.S. enacted Tax Cuts and Jobs Act (a)
|
|
|
|
|
(293
|
)
|
|
|
|
|
|
(293
|
)
|
|||||||||
|
Effects of adoption of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory
|
|
|
|
|
360
|
|
|
|
|
|
|
360
|
|
|||||||||
|
Equity-based compensation
|
68
|
|
|
|
|
|
|
2,535
|
|
|
|
|
2,535
|
|
||||||||
|
Dividends declared ($0.96 per share) (b)
|
|
|
|
|
(18,835
|
)
|
|
|
|
|
|
(18,835
|
)
|
|||||||||
|
Balance, June 30, 2018
|
19,606
|
|
|
$
|
20
|
|
|
$
|
372,759
|
|
|
$
|
(36,094
|
)
|
|
$
|
(1,715
|
)
|
|
$
|
334,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance, December 31, 2018
|
19,613
|
|
|
$
|
20
|
|
|
$
|
372,815
|
|
|
$
|
(34,304
|
)
|
|
$
|
(3,016
|
)
|
|
$
|
335,515
|
|
|
Net income
|
|
|
|
|
10,095
|
|
|
|
|
|
|
10,095
|
|
|||||||||
|
Other comprehensive loss, (net of tax $723)
|
|
|
|
|
|
|
|
|
(2,787
|
)
|
|
(2,787
|
)
|
|||||||||
|
Effects of adoption of ASC 842 (net of tax $3,966) (c)
|
|
|
|
|
11,897
|
|
|
|
|
|
|
11,897
|
|
|||||||||
|
Equity-based compensation plans
|
78
|
|
|
|
|
|
|
3,314
|
|
|
|
|
3,314
|
|
||||||||
|
Dividends declared ($0.96 per share) (d)
|
|
|
|
|
(18,847
|
)
|
|
|
|
|
|
(18,847
|
)
|
|||||||||
|
Balance, June 30, 2019
|
19,691
|
|
|
$
|
20
|
|
|
$
|
375,960
|
|
|
$
|
(30,990
|
)
|
|
$
|
(5,803
|
)
|
|
$
|
339,187
|
|
|
|
June 30, 2018
|
|
|
|
June 30, 2018
|
||||||
|
Consolidated Statement of Cash Flows
|
As reported
|
|
Adjustment
|
|
As revised
|
||||||
|
Cash flows from operating activities
|
|
|
|
|
|
||||||
|
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
|
Accounts payable
|
$
|
(141
|
)
|
|
$
|
(2,551
|
)
|
|
$
|
(2,692
|
)
|
|
Net cash provided by (used for) operations
|
$
|
12,108
|
|
|
$
|
(2,551
|
)
|
|
$
|
9,557
|
|
|
|
|
|
|
|
|
||||||
|
Cash flows used for investing activities
|
|
|
|
|
|
||||||
|
Capital expenditures
|
$
|
(29,026
|
)
|
|
$
|
2,551
|
|
|
$
|
(26,475
|
)
|
|
Net cash (used for) investing activities
|
$
|
(29,026
|
)
|
|
$
|
2,551
|
|
|
$
|
(26,475
|
)
|
|
|
|
|
|
|
|
||||||
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
|
Non-cash investing and financing activities
|
|
|
|
|
|
||||||
|
Accrued additions to plant assets
|
|
|
$
|
12,121
|
|
|
$
|
12,121
|
|
||
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
U.S.
|
|
Canada
|
|
Mexico
|
|
Other Countries
|
|
Total
|
||||||||||
|
Specialty Ingredients
|
$
|
93,335
|
|
|
$
|
3,899
|
|
|
$
|
9,034
|
|
|
$
|
19,700
|
|
|
$
|
125,968
|
|
|
Core Ingredients
|
15,982
|
|
|
2,444
|
|
|
23,369
|
|
|
6,656
|
|
|
48,451
|
|
|||||
|
Co-Products & Other
|
5,395
|
|
|
73
|
|
|
4,939
|
|
|
212
|
|
|
10,619
|
|
|||||
|
Total
|
$
|
114,712
|
|
|
$
|
6,416
|
|
|
$
|
37,342
|
|
|
$
|
26,568
|
|
|
$
|
185,038
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
U.S.
|
|
Canada
|
|
Mexico
|
|
Other Countries
|
|
Total
|
||||||||||
|
Specialty Ingredients
|
$
|
112,614
|
|
|
$
|
6,441
|
|
|
$
|
9,101
|
|
|
$
|
20,425
|
|
|
$
|
148,581
|
|
|
Core Ingredients
|
12,274
|
|
|
2,244
|
|
|
22,339
|
|
|
9,456
|
|
|
46,313
|
|
|||||
|
Co-Products & Other
|
5,488
|
|
|
68
|
|
|
5,849
|
|
|
426
|
|
|
11,831
|
|
|||||
|
Total
|
$
|
130,376
|
|
|
$
|
8,753
|
|
|
$
|
37,289
|
|
|
$
|
30,307
|
|
|
$
|
206,725
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
U.S.
|
|
Canada
|
|
Mexico
|
|
Other Countries
|
|
Total
|
||||||||||
|
Specialty Ingredients
|
$
|
193,863
|
|
|
$
|
9,177
|
|
|
$
|
17,466
|
|
|
$
|
39,378
|
|
|
$
|
259,884
|
|
|
Core Ingredients
|
31,068
|
|
|
4,695
|
|
|
45,978
|
|
|
11,471
|
|
|
93,212
|
|
|||||
|
Co-Products & Other
|
17,766
|
|
|
219
|
|
|
5,088
|
|
|
283
|
|
|
23,356
|
|
|||||
|
Total
|
$
|
242,697
|
|
|
$
|
14,091
|
|
|
$
|
68,532
|
|
|
$
|
51,132
|
|
|
$
|
376,452
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
U.S.
|
|
Canada
|
|
Mexico
|
|
Other Countries
|
|
Total
|
||||||||||
|
Specialty Ingredients
|
$
|
227,398
|
|
|
$
|
12,279
|
|
|
$
|
16,718
|
|
|
$
|
39,829
|
|
|
$
|
296,224
|
|
|
Core Ingredients
|
28,689
|
|
|
4,244
|
|
|
39,982
|
|
|
19,214
|
|
|
92,129
|
|
|||||
|
Co-Products & Other
|
14,195
|
|
|
133
|
|
|
9,057
|
|
|
427
|
|
|
23,812
|
|
|||||
|
Total
|
$
|
270,282
|
|
|
$
|
16,656
|
|
|
$
|
65,757
|
|
|
$
|
59,470
|
|
|
$
|
412,165
|
|
|
•
|
flavor enhancers in beverages;
|
|
•
|
electrolytes in sports drinks;
|
|
•
|
texture modifiers in cheeses;
|
|
•
|
leavening agents in baked goods;
|
|
•
|
calcium and phosphorus fortification in food and beverages;
|
|
•
|
moisture and color retention in seafood, poultry and meat;
|
|
•
|
mineral, enzyme and botanical sources for a wide variety of fortified foods, beverages and dietary supplements;
|
|
•
|
excipients in vitamins, minerals, nutritional supplements and pharmaceuticals; and
|
|
•
|
abrasives in toothpaste.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
|
Net income
|
$
|
1,401
|
|
|
$
|
6,246
|
|
|
$
|
10,095
|
|
|
$
|
17,161
|
|
|
Less: earnings attributable to unvested shares
|
(20
|
)
|
|
(33
|
)
|
|
(38
|
)
|
|
(55
|
)
|
||||
|
Net income available to participating common shareholders
|
$
|
1,381
|
|
|
$
|
6,213
|
|
|
$
|
10,057
|
|
|
$
|
17,106
|
|
|
Weighted average number of participating common and potential common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
|
Basic number of participating common shares outstanding
|
19,572,648
|
|
|
19,505,877
|
|
|
19,571,742
|
|
|
19,503,755
|
|
||||
|
Dilutive effect of stock equivalents
|
204,197
|
|
|
313,006
|
|
|
144,165
|
|
|
262,216
|
|
||||
|
Diluted number of weighted average participating common shares outstanding
|
19,776,845
|
|
|
19,818,883
|
|
|
19,715,907
|
|
|
19,765,971
|
|
||||
|
Earnings per participating common share:
|
|
|
|
|
|
|
|
||||||||
|
Earnings per participating common share—Basic
|
$
|
0.07
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
0.88
|
|
|
Earnings per participating common share—Diluted
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
$
|
0.51
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive
|
867,092
|
|
|
468,773
|
|
|
924,886
|
|
|
519,563
|
|
||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
Stock options
|
$
|
485
|
|
|
$
|
538
|
|
|
$
|
802
|
|
|
$
|
884
|
|
|
Restricted stock
|
745
|
|
|
755
|
|
|
1,272
|
|
|
1,280
|
|
||||
|
Performance shares
|
850
|
|
|
122
|
|
|
793
|
|
|
249
|
|
||||
|
Stock grants
|
700
|
|
|
579
|
|
|
700
|
|
|
579
|
|
||||
|
Total share-based compensation expense
|
$
|
2,780
|
|
|
$
|
1,994
|
|
|
$
|
3,567
|
|
|
$
|
2,992
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Raw materials
|
$
|
43,018
|
|
|
$
|
46,147
|
|
|
Finished products (a)
|
114,293
|
|
|
119,407
|
|
||
|
Spare parts
|
15,144
|
|
|
14,649
|
|
||
|
|
$
|
172,455
|
|
|
$
|
180,203
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Creditable taxes (value added taxes)
|
$
|
14,405
|
|
|
$
|
11,944
|
|
|
Vendor inventory deposits (prepaid)
|
3,108
|
|
|
454
|
|
||
|
Prepaid income taxes
|
16,461
|
|
|
6,658
|
|
||
|
Prepaid insurance
|
797
|
|
|
2,605
|
|
||
|
Other
|
2,241
|
|
|
2,433
|
|
||
|
|
$
|
37,012
|
|
|
$
|
24,094
|
|
|
|
Food, Health and Nutrition
|
Industrial Specialties
|
Other
|
Total
|
||||||||
|
Balance: January 1, 2019
|
$
|
129,484
|
|
$
|
23,283
|
|
$
|
—
|
|
$
|
152,767
|
|
|
Balance: June 30, 2019
|
$
|
129,484
|
|
$
|
23,283
|
|
$
|
—
|
|
$
|
152,767
|
|
|
|
Three months ended
|
|
Six months ended
|
||||
|
|
June 30, 2019
|
|
June 30, 2019
|
||||
|
Operating lease expense:
|
|
|
|
||||
|
Cost of goods sold
|
$
|
1,556
|
|
|
$
|
2,992
|
|
|
Selling, general and administrative
|
941
|
|
|
1,808
|
|
||
|
Total lease expense
|
$
|
2,497
|
|
|
$
|
4,800
|
|
|
|
June 30, 2019
|
||
|
Operating lease ROU assets
|
$
|
51,604
|
|
|
|
|
||
|
Current operating lease liabilities
|
$
|
6,328
|
|
|
Noncurrent operating lease liabilities
|
45,478
|
|
|
|
Total operating lease liabilities
|
$
|
51,806
|
|
|
|
Six months ended
|
||
|
|
June 30, 2019
|
||
|
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
4,694
|
|
|
ROU assets obtained in exchange for new operating lease liabilities
|
$
|
6,230
|
|
|
|
June 30, 2019
|
|
|
Weighted average remaining lease term of operating leases (in years)
|
11
|
|
|
Weighted average discount rate of operating leases
|
5.35
|
%
|
|
|
June 30, 2019
|
||
|
2019
|
$
|
4,742
|
|
|
2020
|
8,140
|
|
|
|
2021
|
7,320
|
|
|
|
2022
|
6,793
|
|
|
|
2023
|
6,175
|
|
|
|
2024 and thereafter
|
38,195
|
|
|
|
Total lease payments
|
$
|
71,365
|
|
|
Less: imputed interest
|
19,559
|
|
|
|
Total lease obligations
|
$
|
51,806
|
|
|
Less: current obligations
|
6,328
|
|
|
|
Long-term lease obligations
|
$
|
45,478
|
|
|
|
December 31, 2018
|
||
|
2019
|
$
|
8,259
|
|
|
2020
|
7,130
|
|
|
|
2021
|
6,490
|
|
|
|
2022
|
6,032
|
|
|
|
2023
|
5,467
|
|
|
|
2024 and thereafter
|
33,957
|
|
|
|
Long-term lease obligations
|
$
|
67,335
|
|
|
|
Useful life
(years)
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Developed technology and application patents, net of accumulated amortization of $35,991 for 2019 and $34,669 for 2018
|
7-20
|
|
$
|
10,284
|
|
|
$
|
11,606
|
|
|
Customer relationships, net of accumulated amortization of $30,916 for 2019 and $28,032 for 2018
|
5-20
|
|
64,597
|
|
|
67,479
|
|
||
|
Trade names and license agreements, net of accumulated amortization of $15,870 for 2019 and $14,599 for 2018
|
5-20
|
|
11,691
|
|
|
12,962
|
|
||
|
Non-compete agreements, net of accumulated amortization of $1,332 for 2019 and $1,319 for 2018
|
3-10
|
|
1
|
|
|
14
|
|
||
|
Total intangibles, net
|
|
|
$
|
86,573
|
|
|
$
|
92,061
|
|
|
Deferred financing costs, net of accumulated amortization of $4,546 for 2019 and $4,331 for 2018 (see Note 11)
|
|
|
$
|
1,076
|
|
|
$
|
1,291
|
|
|
Other assets
|
|
|
2,322
|
|
|
1,742
|
|
||
|
Total other assets, net
|
|
|
$
|
3,398
|
|
|
$
|
3,033
|
|
|
|
|
|
$
|
89,971
|
|
|
$
|
95,094
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Payroll related
|
$
|
14,342
|
|
|
$
|
15,656
|
|
|
Operating lease liabilities
|
6,328
|
|
|
—
|
|
||
|
Taxes other than income taxes
|
1,841
|
|
|
3,071
|
|
||
|
Benefits and pensions
|
5,257
|
|
|
5,680
|
|
||
|
Freight and rebates
|
3,759
|
|
|
6,431
|
|
||
|
Income taxes
|
15,516
|
|
|
1,355
|
|
||
|
Restructuring reserve
|
—
|
|
|
217
|
|
||
|
Deferred gain on sale leaseback transaction (a)
|
—
|
|
|
790
|
|
||
|
Deferred contract termination (b)
|
9,623
|
|
|
9,489
|
|
||
|
Other
|
11,327
|
|
|
7,304
|
|
||
|
|
$
|
67,993
|
|
|
$
|
49,993
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Revolver borrowings under the credit facility due 2021
|
$
|
330,000
|
|
|
$
|
300,000
|
|
|
Long-term debt
|
$
|
330,000
|
|
|
$
|
300,000
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
|
Interest expense
|
$
|
3,924
|
|
|
$
|
3,482
|
|
|
$
|
7,624
|
|
|
$
|
6,578
|
|
|
Deferred financing cost
|
108
|
|
|
107
|
|
|
215
|
|
|
215
|
|
||||
|
Interest income
|
(36
|
)
|
|
(12
|
)
|
|
(63
|
)
|
|
(32
|
)
|
||||
|
Less: amount capitalized for capital projects
|
(109
|
)
|
|
(379
|
)
|
|
(187
|
)
|
|
(659
|
)
|
||||
|
Total interest expense, net
|
$
|
3,887
|
|
|
$
|
3,198
|
|
|
$
|
7,589
|
|
|
$
|
6,102
|
|
|
Tabular Disclosure of the Effect of Derivative Instruments
|
||||||||||
|
|
|
|
|
|
||||||
|
Derivatives in Cash Flow Hedging Relationships
|
|
Amount of Gain/(Loss) Recognized in AOCI on Derivative
|
|
Location of Gain/(Loss) Reclassified from AOCI into Income
|
|
Amount of Gain/(Loss) Reclassified from AOCI into Income
|
||||
|
Interest Rate Contract
|
|
$
|
(1,862
|
)
|
|
Interest Income/(Expense)
|
|
$
|
(77
|
)
|
|
Three months ended June 30, 2019
|
|
$
|
(1,862
|
)
|
|
|
|
$
|
(77
|
)
|
|
|
|
|
|
|
|
|
||||
|
Interest Rate Contract
|
|
$
|
(2,763
|
)
|
|
Interest Income/(Expense)
|
|
$
|
(140
|
)
|
|
Six months ended June 30, 2019
|
|
$
|
(2,763
|
)
|
|
|
|
$
|
(140
|
)
|
|
|
|
|
|
|
|
|
||||
|
Interest Rate Contract
|
|
$
|
—
|
|
|
Interest Income/(Expense)
|
|
$
|
—
|
|
|
Three months ended June 30, 2018
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
|
Interest Rate Contract
|
|
$
|
—
|
|
|
Interest Income/(Expense)
|
|
$
|
—
|
|
|
Six months ended June 30, 2018
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
Deferred income taxes
|
$
|
8,570
|
|
|
$
|
5,113
|
|
|
Pension and post retirement liabilities
|
9,632
|
|
|
9,238
|
|
||
|
Uncertain tax positions
|
320
|
|
|
320
|
|
||
|
Environmental liabilities
|
1,100
|
|
|
1,100
|
|
||
|
Deferred gain on sale leaseback transaction (a)
|
—
|
|
|
15,073
|
|
||
|
Deferred contract termination fee (b)
|
10,425
|
|
|
15,371
|
|
||
|
Interest rate hedge
|
3,787
|
|
|
1,023
|
|
||
|
Other liabilities
|
2,366
|
|
|
2,401
|
|
||
|
|
$
|
36,200
|
|
|
$
|
49,639
|
|
|
|
Three months ended June 30, 2019
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
||||||||||||
|
Service cost
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
37
|
|
|
Interest cost
|
26
|
|
|
34
|
|
|
60
|
|
|
23
|
|
|
29
|
|
|
52
|
|
||||||
|
Expected return on assets
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||||
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
unrecognized (gain) loss
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|
—
|
|
|
(40
|
)
|
|
(40
|
)
|
||||||
|
net transition obligation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Net periodic (benefit) cost
|
$
|
(13
|
)
|
|
$
|
31
|
|
|
$
|
18
|
|
|
$
|
(14
|
)
|
|
$
|
26
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
||||||||||||
|
Service cost
|
$
|
—
|
|
|
$
|
72
|
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
73
|
|
|
Interest cost
|
51
|
|
|
68
|
|
|
119
|
|
|
47
|
|
|
58
|
|
|
105
|
|
||||||
|
Expected return on assets
|
(79
|
)
|
|
—
|
|
|
(79
|
)
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
||||||
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
unrecognized (gain) loss
|
—
|
|
|
(78
|
)
|
|
(78
|
)
|
|
—
|
|
|
(80
|
)
|
|
(80
|
)
|
||||||
|
net transition obligation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Net periodic cost
|
$
|
(28
|
)
|
|
$
|
62
|
|
|
$
|
34
|
|
|
$
|
(28
|
)
|
|
$
|
51
|
|
|
$
|
23
|
|
|
|
Three months ended June 30, 2019
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
||||||||||||
|
Service cost
|
$
|
97
|
|
|
$
|
15
|
|
|
$
|
112
|
|
|
$
|
109
|
|
|
$
|
16
|
|
|
$
|
125
|
|
|
Interest cost
|
137
|
|
|
15
|
|
|
152
|
|
|
129
|
|
|
14
|
|
|
143
|
|
||||||
|
Expected return on assets
|
(205
|
)
|
|
—
|
|
|
(205
|
)
|
|
(198
|
)
|
|
—
|
|
|
(198
|
)
|
||||||
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
actuarial loss (gain)
|
52
|
|
|
—
|
|
|
52
|
|
|
47
|
|
|
1
|
|
|
48
|
|
||||||
|
prior service cost
|
13
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
|
net transition obligation
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||
|
Exchange rate changes
|
(79
|
)
|
|
29
|
|
|
(50
|
)
|
|
100
|
|
|
(34
|
)
|
|
66
|
|
||||||
|
Net periodic cost (benefit)
|
$
|
15
|
|
|
$
|
62
|
|
|
$
|
77
|
|
|
$
|
200
|
|
|
$
|
3
|
|
|
$
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
|
Pension benefits
|
|
Other benefits
|
|
Total
|
||||||||||||
|
Service cost
|
$
|
190
|
|
|
$
|
30
|
|
|
$
|
220
|
|
|
$
|
222
|
|
|
$
|
32
|
|
|
$
|
254
|
|
|
Interest cost
|
268
|
|
|
30
|
|
|
298
|
|
|
261
|
|
|
29
|
|
|
290
|
|
||||||
|
Expected return on assets
|
(403
|
)
|
|
—
|
|
|
(403
|
)
|
|
(403
|
)
|
|
—
|
|
|
(403
|
)
|
||||||
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
actuarial loss (gain)
|
102
|
|
|
—
|
|
|
102
|
|
|
95
|
|
|
2
|
|
|
97
|
|
||||||
|
prior service cost
|
25
|
|
|
—
|
|
|
25
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||
|
net transition obligation
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||||
|
Exchange rate changes
|
(167
|
)
|
|
59
|
|
|
(108
|
)
|
|
218
|
|
|
(73
|
)
|
|
145
|
|
||||||
|
Net periodic cost
|
$
|
15
|
|
|
$
|
125
|
|
|
$
|
140
|
|
|
$
|
419
|
|
|
$
|
2
|
|
|
$
|
421
|
|
|
Three months ended June 30, 2019
|
Pension and Other Postretirement Adjustments
|
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Total
|
||||||
|
Balance at March 31, 2019
|
$
|
(2,301
|
)
|
|
$
|
(1,443
|
)
|
|
$
|
(3,744
|
)
|
|
Other comprehensive (loss) before reclassifications
|
—
|
|
|
(1,455
|
)
|
|
(1,455
|
)
|
|||
|
Amounts reclassified from accumulated other comprehensive income
|
(662
|
)
|
|
58
|
|
|
(604
|
)
|
|||
|
Net current period other comprehensive (loss)
|
(662
|
)
|
|
(1,397
|
)
|
|
(2,059
|
)
|
|||
|
Balance at June 30, 2019
|
$
|
(2,963
|
)
|
|
$
|
(2,840
|
)
|
|
$
|
(5,803
|
)
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30, 2018
|
Pension and Other Postretirement Adjustments
|
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Total
|
||||||
|
Balance at March 31, 2018
|
$
|
(1,809
|
)
|
|
$
|
—
|
|
|
$
|
(1,809
|
)
|
|
Other comprehensive income before reclassifications
|
94
|
|
|
—
|
|
|
94
|
|
|||
|
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Net current period other comprehensive income
|
94
|
|
|
—
|
|
|
94
|
|
|||
|
Balance at June 30, 2018
|
$
|
(1,715
|
)
|
|
$
|
—
|
|
|
$
|
(1,715
|
)
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
Six months ended June 30, 2019
|
Pension and Other Postretirement Adjustments
|
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Total
|
||||||
|
Balance at December 31, 2018
|
$
|
(2,249
|
)
|
|
$
|
(767
|
)
|
|
$
|
(3,016
|
)
|
|
Other comprehensive (loss) before reclassifications
|
—
|
|
|
(2,178
|
)
|
|
(2,178
|
)
|
|||
|
Amounts reclassified from accumulated other comprehensive income
|
(714
|
)
|
|
105
|
|
|
(609
|
)
|
|||
|
Net current period other comprehensive (loss)
|
(714
|
)
|
|
(2,073
|
)
|
|
(2,787
|
)
|
|||
|
Balance at June 30, 2019
|
$
|
(2,963
|
)
|
|
$
|
(2,840
|
)
|
|
$
|
(5,803
|
)
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30, 2018
|
Pension and Other Postretirement Adjustments
|
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Total
|
||||||
|
Balance at December 31, 2017
|
$
|
(2,198
|
)
|
|
$
|
—
|
|
|
$
|
(2,198
|
)
|
|
Other comprehensive income before reclassifications
|
190
|
|
|
—
|
|
|
190
|
|
|||
|
Amounts reclassified from accumulated other comprehensive income
|
293
|
|
|
—
|
|
|
293
|
|
|||
|
Net current period other comprehensive income
|
483
|
|
|
—
|
|
|
483
|
|
|||
|
Balance at June 30, 2018
|
$
|
(1,715
|
)
|
|
$
|
—
|
|
|
$
|
(1,715
|
)
|
|
Three months ended June 30, 2019
|
|
Food, Health and Nutrition
|
|
Industrial Specialties
|
|
Other
|
|
Total
|
||||||||
|
Net sales
|
|
$
|
106,543
|
|
|
$
|
67,725
|
|
|
$
|
10,770
|
|
|
$
|
185,038
|
|
|
EBITDA
|
|
$
|
19,561
|
|
|
$
|
6,972
|
|
|
$
|
(270
|
)
|
|
$
|
26,263
|
|
|
Depreciation and amortization expense
|
|
$
|
6,781
|
|
|
$
|
3,766
|
|
|
$
|
339
|
|
|
$
|
10,886
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three months ended June 30, 2018
|
|
Food, Health and Nutrition
|
|
Industrial Specialties
|
|
Other
|
|
Total
|
||||||||
|
Net sales
|
|
$
|
125,664
|
|
|
$
|
66,751
|
|
|
$
|
14,310
|
|
|
$
|
206,725
|
|
|
EBITDA
|
|
$
|
14,939
|
|
|
$
|
7,794
|
|
|
$
|
(223
|
)
|
|
$
|
22,510
|
|
|
Depreciation and amortization expense
|
|
$
|
7,213
|
|
|
$
|
3,368
|
|
|
$
|
508
|
|
|
$
|
11,089
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six months ended June 30, 2019
|
|
Food, Health and Nutrition
|
|
Industrial Specialties
|
|
Other
|
|
Total
|
||||||||
|
Net sales
|
|
$
|
221,609
|
|
|
$
|
130,923
|
|
|
$
|
23,920
|
|
|
$
|
376,452
|
|
|
EBITDA
|
|
$
|
33,967
|
|
|
$
|
15,029
|
|
|
$
|
3,041
|
|
|
$
|
52,037
|
|
|
Depreciation and amortization expense
|
|
$
|
13,169
|
|
|
$
|
6,946
|
|
|
$
|
531
|
|
|
$
|
20,646
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six months ended June 30, 2018
|
|
Food, Health and Nutrition
|
|
Industrial Specialties
|
|
Other
|
|
Total
|
||||||||
|
Net sales
|
|
$
|
252,027
|
|
|
$
|
130,101
|
|
|
$
|
30,037
|
|
|
$
|
412,165
|
|
|
EBITDA
|
|
$
|
33,931
|
|
|
$
|
17,886
|
|
|
$
|
564
|
|
|
$
|
52,381
|
|
|
Depreciation and amortization expense
|
|
$
|
14,535
|
|
|
$
|
7,104
|
|
|
$
|
814
|
|
|
$
|
22,453
|
|
|
|
|
Three months ended
|
||||||
|
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Net income
|
|
$
|
1,401
|
|
|
$
|
6,246
|
|
|
Provision for income taxes
|
|
10,089
|
|
|
1,977
|
|
||
|
Interest expense, net
|
|
3,887
|
|
|
3,198
|
|
||
|
Depreciation and amortization
|
|
10,886
|
|
|
11,089
|
|
||
|
EBITDA
|
|
$
|
26,263
|
|
|
$
|
22,510
|
|
|
|
|
|
|
|
||||
|
|
|
Six months ended
|
||||||
|
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Net income
|
|
$
|
10,095
|
|
|
$
|
17,161
|
|
|
Provision for income taxes
|
|
13,707
|
|
|
6,665
|
|
||
|
Interest expense, net
|
|
7,589
|
|
|
6,102
|
|
||
|
Depreciation and amortization
|
|
20,646
|
|
|
22,453
|
|
||
|
EBITDA
|
|
$
|
52,037
|
|
|
$
|
52,381
|
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Three Months Ended
|
||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
|
Net sales
|
$
|
185.0
|
|
|
100.0
|
|
|
$
|
206.7
|
|
|
100.0
|
|
|
Cost of goods sold
|
148.6
|
|
|
80.3
|
|
|
170.3
|
|
|
82.4
|
|
||
|
Gross profit
|
36.4
|
|
|
19.7
|
|
|
36.4
|
|
|
17.6
|
|
||
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||
|
Selling, general and administrative
|
20.3
|
|
|
11.0
|
|
|
22.5
|
|
|
10.9
|
|
||
|
Research & development
|
1.2
|
|
|
0.6
|
|
|
1.4
|
|
|
0.7
|
|
||
|
Income from operations
|
14.9
|
|
|
8.1
|
|
|
12.5
|
|
|
6.0
|
|
||
|
Interest expense, net
|
3.9
|
|
|
2.1
|
|
|
3.2
|
|
|
1.5
|
|
||
|
Foreign exchange (gain) loss, net
|
(0.5
|
)
|
|
(0.3
|
)
|
|
1.1
|
|
|
0.5
|
|
||
|
Provision for income taxes
|
10.1
|
|
|
5.5
|
|
|
2.0
|
|
|
1.0
|
|
||
|
Net income
|
$
|
1.4
|
|
|
0.8
|
|
|
$
|
6.2
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended
|
||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
|
Net sales
|
$
|
376.5
|
|
|
100.0
|
|
|
$
|
412.2
|
|
|
100.0
|
|
|
Cost of goods sold
|
303.7
|
|
|
80.7
|
|
|
333.6
|
|
|
80.9
|
|
||
|
Gross profit
|
72.8
|
|
|
19.3
|
|
|
78.6
|
|
|
19.1
|
|
||
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||
|
Selling, general and administrative
|
39.7
|
|
|
10.5
|
|
|
45.0
|
|
|
10.9
|
|
||
|
Research & development
|
2.6
|
|
|
0.7
|
|
|
2.8
|
|
|
0.6
|
|
||
|
Income from operations
|
30.5
|
|
|
8.1
|
|
|
30.8
|
|
|
7.5
|
|
||
|
Interest expense, net
|
7.6
|
|
|
2.0
|
|
|
6.1
|
|
|
1.5
|
|
||
|
Foreign exchange (gain) loss, net
|
(0.9
|
)
|
|
(0.2
|
)
|
|
0.9
|
|
|
0.2
|
|
||
|
Provision for income taxes
|
13.7
|
|
|
3.6
|
|
|
6.6
|
|
|
1.7
|
|
||
|
Net income
|
$
|
10.1
|
|
|
2.7
|
|
|
$
|
17.2
|
|
|
4.2
|
|
|
|
$ (in millions)
|
||
|
Higher selling prices
|
$
|
5.9
|
|
|
Lower sales volume/mix
|
(6.5
|
)
|
|
|
Supply agreement termination amortization
|
2.4
|
|
|
|
Severance
|
(0.3
|
)
|
|
|
Higher raw materials costs (a)
|
(0.1
|
)
|
|
|
Higher manufacturing cost (a)
|
(4.8
|
)
|
|
|
Lower value chain transition costs
|
3.4
|
|
|
|
Higher depreciation and amortization (a)
|
(0.9
|
)
|
|
|
Lower turnaround cost at our Coatzacoalcos, Mexico manufacturing facility
|
0.9
|
|
|
|
|
$
|
—
|
|
|
|
Price
|
|
Volume/Mix
|
|
Total
|
|||
|
Food, Health and Nutrition
|
3.7
|
%
|
|
(15.8
|
)%
|
|
(12.1
|
)%
|
|
Industrial Specialties
|
3.5
|
%
|
|
(2.9
|
)%
|
|
0.6
|
%
|
|
Other
|
(1.1
|
)%
|
|
(19.3
|
)%
|
|
(20.4
|
)%
|
|
Total
|
3.3
|
%
|
|
(12.0
|
)%
|
|
(8.7
|
)%
|
|
|
$ (in millions)
|
||
|
Higher selling prices
|
$
|
13.6
|
|
|
Lower sales volume/mix
|
(13.0
|
)
|
|
|
Supply agreement termination amortization
|
4.8
|
|
|
|
Severance
|
(0.5
|
)
|
|
|
Higher raw materials costs (a) (b)
|
(5.1
|
)
|
|
|
Higher manufacturing cost (b)
|
(6.8
|
)
|
|
|
Lower value chain transition costs
|
1.8
|
|
|
|
Higher depreciation and amortization (b)
|
(0.3
|
)
|
|
|
Higher natural gas cost at our Coatzacoalcos, Mexico manufacturing facility
|
(1.2
|
)
|
|
|
Lower turnaround cost at our Coatzacoalcos, Mexico manufacturing facility
|
0.9
|
|
|
|
|
$
|
(5.8
|
)
|
|
|
Three Months Ended
|
|
|
|||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
Net Sales % Change
|
|||||
|
Segment Net Sales
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
106,543
|
|
|
$
|
125,664
|
|
|
(15.2
|
)%
|
|
Industrial Specialties
|
67,725
|
|
|
66,751
|
|
|
1.5
|
%
|
||
|
Other
|
10,770
|
|
|
14,310
|
|
|
(24.7
|
)%
|
||
|
Total
|
$
|
185,038
|
|
|
$
|
206,725
|
|
|
(10.5
|
)%
|
|
|
|
|
|
|
|
|||||
|
Segment EBITDA
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
19,561
|
|
|
$
|
14,939
|
|
|
|
|
|
Industrial Specialties
|
6,972
|
|
|
7,794
|
|
|
|
|
||
|
Other
|
(270
|
)
|
|
(223
|
)
|
|
|
|
||
|
Total
|
$
|
26,263
|
|
|
$
|
22,510
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Segment EBITDA % of net sales
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
18.4
|
%
|
|
11.9
|
%
|
|
|
|
||
|
Industrial Specialties
|
10.3
|
%
|
|
11.7
|
%
|
|
|
|
||
|
Other
|
(2.5
|
)%
|
|
(1.6
|
)%
|
|
|
|
||
|
Total
|
14.2
|
%
|
|
10.9
|
%
|
|
|
|
||
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization expense
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
6,781
|
|
|
$
|
7,213
|
|
|
|
|
|
Industrial Specialties
|
3,766
|
|
|
3,368
|
|
|
|
|
||
|
Other
|
339
|
|
|
508
|
|
|
|
|
||
|
Total
|
$
|
10,886
|
|
|
$
|
11,089
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Six Months Ended
|
|
|
|||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
Net Sales % Change
|
|||||
|
Segment Net Sales
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
221,609
|
|
|
$
|
252,027
|
|
|
(12.1
|
)%
|
|
Industrial Specialties
|
130,923
|
|
|
130,101
|
|
|
0.6
|
%
|
||
|
Other
|
23,920
|
|
|
30,037
|
|
|
(20.4
|
)%
|
||
|
Total
|
$
|
376,452
|
|
|
$
|
412,165
|
|
|
(8.7
|
)%
|
|
|
|
|
|
|
|
|||||
|
Segment EBITDA
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
33,967
|
|
|
$
|
33,931
|
|
|
|
|
|
Industrial Specialties
|
15,029
|
|
|
17,886
|
|
|
|
|||
|
Other
|
3,041
|
|
|
564
|
|
|
|
|||
|
Total
|
$
|
52,037
|
|
|
$
|
52,381
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Segment EBITDA % of net sales
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
15.3
|
%
|
|
13.5
|
%
|
|
|
|||
|
Industrial Specialties
|
11.5
|
%
|
|
13.7
|
%
|
|
|
|||
|
Other
|
12.7
|
%
|
|
1.9
|
%
|
|
|
|||
|
Total
|
13.8
|
%
|
|
12.7
|
%
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization expense
|
|
|
|
|
|
|||||
|
Food, Health and Nutrition
|
$
|
13,169
|
|
|
$
|
14,535
|
|
|
|
|
|
Industrial Specialties
|
6,946
|
|
|
7,104
|
|
|
|
|||
|
Other
|
531
|
|
|
814
|
|
|
|
|||
|
Total
|
$
|
20,646
|
|
|
$
|
22,453
|
|
|
|
|
|
|
|
Three months ended
|
||||||
|
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Net income
|
|
$
|
1,401
|
|
|
$
|
6,246
|
|
|
Provision for income taxes
|
|
10,089
|
|
|
1,977
|
|
||
|
Interest expense, net
|
|
3,887
|
|
|
3,198
|
|
||
|
Depreciation and amortization
|
|
10,886
|
|
|
11,089
|
|
||
|
EBITDA
|
|
$
|
26,263
|
|
|
$
|
22,510
|
|
|
|
|
Six Months Ended
|
||||||
|
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Net income
|
|
$
|
10,095
|
|
|
$
|
17,161
|
|
|
Provision for income taxes
|
|
13,707
|
|
|
6,665
|
|
||
|
Interest expense, net
|
|
7,589
|
|
|
6,102
|
|
||
|
Depreciation and amortization
|
|
20,646
|
|
|
22,453
|
|
||
|
EBITDA
|
|
$
|
52,037
|
|
|
$
|
52,381
|
|
|
(Dollars in millions)
|
Six Months Ended
|
||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
||||
|
Operating Activities
|
$
|
16.8
|
|
|
$
|
9.6
|
|
|
Investing Activities
|
(15.8
|
)
|
|
(26.5
|
)
|
||
|
Financing Activities
|
10.9
|
|
|
1.0
|
|
||
|
Effect of foreign exchange rate changes
|
—
|
|
|
(0.6
|
)
|
||
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
|
ITEM 1A.
|
RISK FACTORS
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
|
ITEM 5.
|
OTHER INFORMATION
|
|
ITEM 6.
|
EXHIBITS
|
|
Exhibit No.
|
|
Description
|
|
|
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
*
|
Not to be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor deemed to be incorporated by reference into any filing under that Act or the Securities Act of 1933, as amended.
|
|
INNOPHOS HOLDINGS, INC.
|
|
|
|
|
|
|
/s/ Kim Ann Mink
|
|
By:
|
Kim Ann Mink
|
|
Its:
|
Chief Executive Officer, President and Director
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Dated:
|
August 8, 2019
|
|
|
|
|
INNOPHOS HOLDINGS, INC.
|
|
|
|
|
|
|
/s/ Mark Feuerbach
|
|
By:
|
Mark Feuerbach
|
|
Its:
|
Interim Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Dated:
|
August 8, 2019
|
|
Exhibit No.
|
|
Description
|
|
31.1
|
|
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2
|
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
|
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
32.2*
|
|
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
*
|
Not to be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor deemed to be incorporated by reference into any filing under that Act or the Securities Act of 1933, as amended.
|
|
Dated:
|
August 8, 2019
|
By:
|
/S/ KIM ANN MINK
|
|
|
|
|
Kim Ann Mink
|
|
|
|
|
Chief Executive Officer, President and Director
(Principal Executive Officer)
|
|
Dated:
|
August 8, 2019
|
By:
|
/S/ Mark Feuerbach
|
|
|
|
|
Mark Feuerbach
|
|
|
|
|
Interim Chief Financial Officer
(Principal Financial Officer)
|
|
/S/ KIM ANN MINK
|
|
Kim Ann Mink
|
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
|
/S/ Mark Feuerbach
|
|
Mark Feuerbach
|
|
Interim Chief Financial Officer
(Principal Financial Officer)
|