2022 Q4 Form 10-Q Financial Statement

#000143774922025971 Filed on November 04, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $1.650B $2.011B
YoY Change -28.48% -11.99%
Cost Of Revenue $1.460B $1.662B
YoY Change -20.57% -7.77%
Gross Profit $190.0M $349.0M
YoY Change -59.49% -27.74%
Gross Profit Margin 11.52% 17.35%
Selling, General & Admin $179.0M $165.0M
YoY Change -22.51% -19.12%
% of Gross Profit 94.21% 47.28%
Research & Development $28.00M $31.00M
YoY Change -24.32% -18.42%
% of Gross Profit 14.74% 8.88%
Depreciation & Amortization $74.00M $72.00M
YoY Change -3.9% 0.0%
% of Gross Profit 38.95% 20.63%
Operating Expenses $167.0M $211.0M
YoY Change -32.66% -11.34%
Operating Profit $23.00M $138.0M
YoY Change -89.59% -43.67%
Interest Expense -$7.000M -$16.00M
YoY Change -170.0% 6.67%
% of Operating Profit -30.43% -11.59%
Other Income/Expense, Net $12.00M $10.00M
YoY Change 33.33% 42.86%
Pretax Income -$25.00M $146.0M
YoY Change -103.58% -45.52%
Income Tax $31.00M $30.00M
% Of Pretax Income 20.55%
Net Earnings -$91.00M $100.0M
YoY Change -115.24% -52.15%
Net Earnings / Revenue -5.52% 4.97%
Basic Earnings Per Share $0.51
Diluted Earnings Per Share -$0.48 $0.50
COMMON SHARES
Basic Shares Outstanding 192.1M 201.4M
Diluted Shares Outstanding 199.2M

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $654.0M $515.0M
YoY Change -37.18% 1.98%
Cash & Equivalents $654.0M $515.0M
Short-Term Investments
Other Short-Term Assets $190.0M $115.0M
YoY Change 13.77% -41.33%
Inventory $995.0M $1.079B
Prepaid Expenses
Receivables $813.0M $981.0M
Other Receivables $21.00M $23.00M
Total Short-Term Assets $3.145B $3.196B
YoY Change -19.93% 2.63%
LONG-TERM ASSETS
Property, Plant & Equipment $2.377B $2.288B
YoY Change -7.73% -9.92%
Goodwill $641.0M $636.0M
YoY Change -1.38% -14.17%
Intangibles $425.0M $433.0M
YoY Change -9.38% 7.18%
Long-Term Investments $425.0M $430.0M
YoY Change -9.57% -7.73%
Other Assets $686.0M $623.0M
YoY Change -0.58% 2.98%
Total Long-Term Assets $5.075B $4.936B
YoY Change -7.12% -9.51%
TOTAL ASSETS
Total Short-Term Assets $3.145B $3.196B
Total Long-Term Assets $5.075B $4.936B
Total Assets $8.220B $8.132B
YoY Change -12.48% -5.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $907.0M $865.0M
YoY Change -20.99% -9.42%
Accrued Expenses $429.0M $393.0M
YoY Change -45.0% -30.93%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $66.00M $12.00M
YoY Change 450.0% -25.0%
Total Short-Term Liabilities $1.701B $1.595B
YoY Change -17.06% -1.79%
LONG-TERM LIABILITIES
Long-Term Debt $1.671B $1.476B
YoY Change 8.65% -5.81%
Other Long-Term Liabilities $422.0M $502.0M
YoY Change -40.81% -40.24%
Total Long-Term Liabilities $2.093B $1.978B
YoY Change -7.02% -17.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.701B $1.595B
Total Long-Term Liabilities $2.093B $1.978B
Total Liabilities $4.380B $4.148B
YoY Change -9.37% -10.12%
SHAREHOLDERS EQUITY
Retained Earnings $2.705B $2.836B
YoY Change 11.09% 50.77%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.624B $3.774B
YoY Change
Total Liabilities & Shareholders Equity $8.220B $8.132B
YoY Change -12.48% -5.1%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income -$91.00M $100.0M
YoY Change -115.24% -52.15%
Depreciation, Depletion And Amortization $74.00M $72.00M
YoY Change -3.9% 0.0%
Cash From Operating Activities $310.0M $288.0M
YoY Change -60.76% 54.84%
INVESTING ACTIVITIES
Capital Expenditures $86.00M -$48.00M
YoY Change -193.48% -36.84%
Acquisitions
YoY Change
Other Investing Activities -$5.000M -$11.00M
YoY Change -171.43% -283.33%
Cash From Investing Activities -$91.00M -$59.00M
YoY Change 7.06% -15.71%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -89.00M -296.0M
YoY Change -47.02% 150.85%
NET CHANGE
Cash From Operating Activities 310.0M 288.0M
Cash From Investing Activities -91.00M -59.00M
Cash From Financing Activities -89.00M -296.0M
Net Change In Cash 130.0M -67.00M
YoY Change -75.79% 3250.0%
FREE CASH FLOW
Cash From Operating Activities $310.0M $288.0M
Capital Expenditures $86.00M -$48.00M
Free Cash Flow $224.0M $336.0M
YoY Change -74.6% 28.24%

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b><em style="font: inherit;">1.</em> GENERAL</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><span style="text-transform:uppercase;"><b>C<span style="font-family:Times New Roman;font-size:7pt;">ertain</span> D<span style="font-family:Times New Roman;font-size:7pt;">efinitions</span></b></span></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">For convenience in this report, the terms “Company,” “Huntsman,” “our,” “us” or “we” <em style="font: inherit;"> may </em>be used to refer to Huntsman Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. In this report, “Huntsman International” refers to Huntsman International LLC (our wholly-owned subsidiary).</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;text-indent:36pt;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">In this report, we <em style="font: inherit;"> may </em>use, without definition, the common names of competitors or other industry participants. We <em style="font: inherit;"> may </em>also use the common names or abbreviations for certain chemicals or products.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;text-indent:36pt;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><span style="text-transform:uppercase;"><b>I<span style="font-family:Times New Roman;font-size:7pt;">nterim</span> F<span style="font-family:Times New Roman;font-size:7pt;">inancial</span> S<span style="font-family:Times New Roman;font-size:7pt;">tatements</span></b></span></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Our unaudited interim condensed consolidated financial statements and Huntsman International’s unaudited interim condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows for the periods presented. Results for interim periods are <em style="font: inherit;">not</em> necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form <em style="font: inherit;">10</em>-K for the year ended <em style="font: inherit;"> December 31, 2021</em> for our Company and Huntsman International.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">​</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><span style="text-transform:uppercase;"><b>D<span style="font-family:Times New Roman;font-size:7pt;">escription</span> <span style="font-family:Times New Roman;font-size:7pt;">of</span> B<span style="font-family:Times New Roman;font-size:7pt;">usinesses</span></b></span></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">We are a global manufacturer of differentiated organic chemical products. We operate in <span style="-sec-ix-hidden:c90346695">three</span> segments: Polyurethanes, Performance Products and Advanced Materials. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, medical, packaging, coatings and construction, power generation, refining and synthetic fiber industries. We are a leading global producer in many of our key product lines, including MDI, amines, maleic anhydride and epoxy-based polymer formulations.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">On <em style="font: inherit;"> August 9, 2022, </em>we entered into a definitive agreement to sell our textile chemicals and dyes business (“Textile Effects Business”) to Archroma, a portfolio company of SK Capital Partners (“Archroma”). Beginning in the <em style="font: inherit;">third</em> quarter of <em style="font: inherit;">2022,</em> the results of our Textile Effects Business are reported as discontinued operations for all periods presented. For more information, see “Note <em style="font: inherit;">4.</em> Discontinued Operations and Business Dispositions—Sale of Textile Effects Business.” An insignificant impact on earnings from businesses previously divested is also reported in discontinued operations.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">​</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 36pt; text-align: left;">We operate our businesses through Huntsman International, our wholly-owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in <em style="font: inherit;">1999.</em></p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;/*! font-variant:small-caps; */margin:0pt;text-align:left;"><span style="text-transform:uppercase;"><b>H<span style="font-family:Times New Roman;font-size:7pt;">untsman</span> C<span style="font-family:Times New Roman;font-size:7pt;">orporation and </span>H<span style="font-family:Times New Roman;font-size:7pt;">untsman</span> I<span style="font-family:Times New Roman;font-size:7pt;">nternational</span> F<span style="font-family:Times New Roman;font-size:7pt;">inancial</span> S<span style="font-family:Times New Roman;font-size:7pt;">tatements</span></b></span></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Except where otherwise indicated, these notes relate to the condensed consolidated financial statements for both our Company and Huntsman International. The differences between our financial statements and Huntsman International’s financial statements relate primarily to different capital structures and purchase accounting recorded at our Company for the <em style="font: inherit;">2003</em> step-acquisition of Huntsman International Holdings LLC, the former parent company of Huntsman International that was merged into Huntsman International in <em style="font: inherit;">2005.</em></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">​​</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">​<span style="text-transform:uppercase;"><b>P<span style="font-family:Times New Roman;font-size:7pt;">rinciples of</span> C<span style="font-family:Times New Roman;font-size:7pt;">onsolidation</span></b></span></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;font-variant:small-caps;margin:0pt;text-align:left;"><b>​</b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt; text-align: left;">Our condensed consolidated financial statements include the accounts of our wholly-owned and majority-owned subsidiaries and any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated.</p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-indent: 45pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><b>R</b><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps"><span style="font-family:Times New Roman; font-size:7pt">ec</span><span style="font-family:Times New Roman; font-size:7pt">l</span></b><span style="text-transform:uppercase"><b><span style="font-family:Times New Roman; font-size:7pt">assfica</span></b></span><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps"><span style="font-family:Times New Roman; font-size:7pt">t</span></b><span style="text-transform:uppercase"><b><span style="font-family:Times New Roman; font-size:7pt">ion</span></b></span><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps"><span style="font-family:Times New Roman; font-size:7pt">s </span></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">Certain amounts in the condensed consolidated financial statements for prior periods have been recast for all periods presented to conform with the current presentation. These reclassifications were to present the assets and liabilities of our Textile Effects Business as held for sale and its results of operations as discontinued operations. See “— Recent Developments” below as well as “Note <em style="font: inherit;">4.</em> Discontinued Operations and Business Dispositions—Sale of Textile Effects Business.” </p> <p style="text-align:left"><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps">U<span style="font-family:Times New Roman; font-size:7pt">se of</span> </b><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps">E<span style="font-family:Times New Roman; font-size:7pt">stimates</span></b></p> <p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><b style="text-transform:uppercase; font-size:10pt; font-variant-caps:small-caps">R<span style="font-family:Times New Roman; font-size:7pt">ecent </span>D<span style="font-family:Times New Roman; font-size:7pt">evelopments </span></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><b>European Restructuring Program</b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: left; text-indent: 36pt;">In early <em style="font: inherit;"> November 2022, </em>we announced our commitment and specific plans to further realign our cost structure beyond the current in-progress cost optimization programs with additional restructuring in Europe. The new program will include exiting and consolidating certain facilities, workforce relocation to lower cost locations and further personnel rationalization. In connection with this program, we expect to record restructuring expenses of approximately $50 million through <em style="font: inherit;">2023.</em></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><b>Sale of Textile Effects Business </b></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: left; text-indent: 36pt;">On <em style="font: inherit;"> August 9, 2022, </em>we entered into a definitive agreement to sell our Textile Effects Business to Archroma for a total enterprise value of $718 million, which includes the assumption of approximately $125 million in net underfunded pension liabilities as of <em style="font: inherit;"> December 31, 2021. </em>We anticipate the transaction will close <em style="font: inherit;">no</em> later than the <em style="font: inherit;">first</em> half of <em style="font: inherit;">2023.</em> Beginning in the <em style="font: inherit;">third</em> quarter of <em style="font: inherit;">2022,</em> the results of our Textile Effects Business are reported as discontinued operations for all periods presented. For more information, see “Note <em style="font: inherit;">4.</em> Discontinued Operations and Business Dispositions—Sale of Textile Effects Business.” </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 36pt; text-align: left;"> </p>
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Huntsman Corporation
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10003 Woodloch Forest Drive
dei Entity Address City Or Town
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dei Entity Address State Or Province
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TX
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dei City Area Code
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dei Local Phone Number
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dei Entity Incorporation State Country Code
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DE
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dei Security12b Title
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Common Stock, par value $0.01 per share
dei Trading Symbol
TradingSymbol
HUN
dei Security Exchange Name
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NYSE
dei Entity Current Reporting Status
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dei Entity Filer Category
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