Innospec Q1 2022 Earnings Report
Key Takeaways
Innospec Inc. announced its financial results for the first quarter ended March 31, 2022, with total revenues of $472.4 million, a 39% increase from the corresponding period last year. Net income for the quarter was $36.5 million, or $1.46 per diluted share, compared to $23.4 million, or 94 cents per diluted share, recorded last year. Adjusted non-GAAP EPS in the first quarter was $1.53 per diluted share, compared to $1.06 per diluted share a year ago.
Revenues increased by 39 percent year-over-year, reaching $472.4 million.
Net income was $36.5 million, or $1.46 per diluted share, compared to $23.4 million, or 94 cents per diluted share last year.
Adjusted non-GAAP EPS was $1.53 per diluted share, compared to $1.06 per diluted share a year ago.
Cash and cash equivalents totaled $105.6 million at the end of the quarter.
Innospec
Innospec
Innospec Revenue by Segment
Forward Guidance
Innospec anticipates strong demand to continue in all end-markets and is managing additional price actions to offset inflationary impacts. Managing ongoing supply and logistical challenges will continue to be a key focus. The company expects Oilfield Services to resume its sequential operating income improvement in the coming quarters.
Positive Outlook
- Strong demand is expected to continue in all end-markets.
- Additional price actions are being managed to offset inflationary impacts.
- Fuel Specialties gross margins improved significantly over the fourth quarter and returned to the lower end of our target 32 to 35 percent range.
- Oilfield Services is expected to resume its sequential operating income improvement in the coming quarters.
- Debt-free balance sheet, broad mix of daily-use consumable products and relentless focus on customer service positions us well for continued growth in all our businesses.
Challenges Ahead
- Sustained inflationary and supply-chain pressures persist.
- Managing ongoing supply and logistical challenges will continue to be a key focus.
- Oilfield Services experienced shipment delays leading to a sequential quarter decline in operating income.
- Gross margins in Fuel Specialties are expected to remain on the lower end of the target range until cost inflation moderates.
- Corporate costs increased due mainly to higher personnel-related expenses driven by increased share-based compensation accruals.
Revenue & Expenses
Visualization of income flow from segment revenue to net income