Attached files
| file | filename |
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| EX-99.1 - EARNINGS PRESS RELEASE DATED AUGUST 10, 2011 - TPC Group Inc. | dex991.htm |
| 8-K - FORM 8-K - TPC Group Inc. | d8k.htm |
 Investor Conference Call
Quarter Ended June 30, 2011
August 11, 2011
Exhibit 99.2 |
 2
SEC Disclosure Information
»
Forward
Looking
Statements
{
Some
of
our
comments
today
may
include
forward-
looking statements about our expectations for the future. These statements include
assumptions, expectations, predictions, intentions or beliefs about future events.
Although
we
believe
that
such
statements
are
based
on
reasonable
assumptions, no
assurance can be given that such statements will prove to have been correct, and we
do not plan to update any forward-looking statements if our expectations change. More
information about the risks and uncertainties relating to TPC Group and the forward-
looking statements may be found in our SEC filings.
»
Non-GAAP
Financial
Measures
{
Some
of
our
comments
today
will
reference
Adjusted EBITDA, which is a non-GAAP financial measure. Provided herein is a
reconciliation,
for
each
period
presented,
of
Adjusted
EBITDA
to
Net Income, which is
the most directly comparable GAAP measure reported in our financial statements.
|
 3
Net Income
Adjusted EBITDA*
Dollars in millions
except EPS
* See slide 8 for a reconciliation of Adjusted EBITDA to Net
Income for all periods presented. Net Income (Loss) is the GAAP
measure most directly comparable to Adjusted EBITDA. Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
(in millions except per share)
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Revenue
792.9
$
555.6
$
486.1
$
499.4
$
531.8
$
Gross Profit
115.7
79.6
59.2
71.3
77.8
Operating Income (Loss)
60.2
25.0
8.4
22.5
24.4
Interest Income (Expense) and Other
(8.2)
(7.9)
(10.7)
(2.8)
(2.1)
Income Tax (Expense) / Benefit
(17.7)
(5.7)
1.6
(6.9)
(7.9)
Net Income
34.3
11.4
(0.7)
12.8
14.4
EPS (Diluted)
2.12
$
0.70
$
(0.04)
$
0.70
$
0.80
$ |
 4
C4 Processing
C4 Processing
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Revenue ($mm)
659.1
$
434.3
$
394.6
$
397.9
$
424.5
$
Gross Profit ($mm)
92.8
58.0
40.2
47.3
51.4
Adj. EBITDA ($mm)
66.9
30.6
15.7
23.8
26.2
Volume (mm)
691.2
581.2
597.2
587.1
644.7
Gross Profit (¢/lb)
0.13
$
0.10
$
0.07
$
0.08
$
0.08
$
Adj. EBITDA (¢/lb)
0.10
$
0.05
$
0.03
$
0.04
$
0.04
$
Performance Products
Performance Products
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Revenue ($mm)
133.8
$
121.3
$
91.5
$
101.5
$
107.3
$
Gross Profit ($mm)
22.8
21.6
19.0
24.0
26.4
Adj. EBITDA ($mm)
12.0
11.6
9.2
14.6
17.2
Volume (mm)
168.6
169.5
141.0
161.6
158.0
Gross Profit (¢/lb)
0.14
$
0.13
$
0.13
$
0.15
$
0.17
$
Adj. EBITDA (¢/lb)
0.07
$
0.07
$
0.07
$
0.09
$
0.11
$
Total
Total
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
Qtr Ending
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Revenue ($mm)
792.9
$
555.6
$
486.1
$
499.4
$
531.8
$
Gross Profit ($mm)
115.7
79.6
59.2
71.3
77.8
Adj. EBITDA ($mm)
78.9
42.2
24.9
38.4
43.4
Volume (mm)
859.8
750.7
738.2
748.7
802.7
Gross Profit (¢/lb)
0.13
$
0.11
$
0.08
$
0.10
$
0.10
$
Adj. EBITDA (¢/lb)
0.09
$
0.06
$
0.03
$
0.05
$
0.05
$
Selected Operating Results (unaudited)
* See slide 8 for a reconciliation of Adjusted EBITDA to Net Income for all periods
presented. Net Income (Loss) is the GAAP measure most directly
comparable to Adjusted EBITDA. |
 Supplemental Data
5 |
  6
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
Qtr Ended
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
End of Qtr BD Contract Price ($/lb) (1)
1.53
1.04
0.86
0.93
0.92
Unleaded Gasoline Qtr Avg - USGC ($/gal) (2)
3.07
2.61
2.18
2.00
2.11
US Ethylene Industry Capacity Utilization (%) (3)
89.1
92.5
88.0
92.3
87.6
US BD Production (mm lbs) (3)
795
833
813
838
820
(1) Source: CMAI
(2) Source: Platts
(3) Source: Hodson
Selected Market Data |
  7
Selected Financial Data
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Sales Volumes (mm lbs) (1)
859.8
750.7
738.2
748.7
802.7
Sales Revenue ($mm)
792.9
555.6
486.1
499.4
531.8
Adjusted EBITDA ($mm)
C4 Processing
66.9
30.6
15.7
23.8
26.2
Performance Products
12.0
11.6
9.2
14.6
17.2
Corporate
(7.9)
(6.7)
(6.2)
(5.6)
(7.3)
Adjusted EBITDA (2)
71.0
35.5
18.7
32.8
36.1
Adjusted EBITDA per pound
0.08
0.05
0.03
0.04
0.04
Operating Segment Adjusted EBITDA per pound (3)
0.09
0.06
0.03
0.05
0.05
(1) Does not include tolling volume.
(2) Adjusted EBITDA as set by current definition.
(3) Adjusted EBITDA for the C4 Processing and Performance Products
operating segments - i.e. total Adjusted EBITDA less Corporate.
Quarter Ended
(Unaudited) |
 8
Reconciliation of Adjusted EBITDA to Net Income
6/30/2011
3/31/2011
12/31/2010
9/30/2010
6/30/2010
Net income (loss)
34.3
$
11.4
$
(0.7)
$
12.8
$
14.4
$
Income tax expense
17.7
5.7
(1.6)
6.9
7.9
Interest expense, net
8.6
8.4
11.1
3.2
4.0
Depreciation and amortization
10.4
10.0
9.9
9.9
9.8
Adjusted EBITDA
71.0
$
35.5
$
18.7
$
32.8
$
36.1
$
Quarter Ended
(Unaudited, in millions)
(*) Adjusted EBITDA is presented and discussed herein because management believes it enhances
understanding by investors and lenders of the Company’s financial performance.
Adjusted EBITDA is not a measure computed in accordance with GAAP. Accordingly it does not represent cash flow from operations, nor
is it intended to be presented herein as a substitute for operating income or net income as indicators
of the Company’s operating performance. Adjusted EBITDA is the primary performance
measurement used by senior management and our Board of Directors to evaluate operating results of, and to allocate capital
resources between, our business segments. We calculate Adjusted EBITDA as earnings before
interest, taxes, depreciation and amortization (EBITDA), which is then adjusted to remove or
add back certain items. The items removed or added back have historically consisted of items we consider to be non-recurring in
nature and which we believe distort comparability between periods. There were no such items
identified in the Reconciliations of Adjusted EBITDA to Net Income for the periods presented
above. Our calculation of Adjusted EBITDA may be different from calculations used by other companies; therefore, it may not be
comparable to other companies.
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