Ingevity Corporation (NYSE:NGVT) Q1 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 10:00 am ET


Ingevity Corporation (NYSE:NGVT) Q1 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Ingevity First Quarter Earnings Conference Call. During today's conference all lines are in a listen-only mode. We will have a question-and-answer session later on. (Operator Instructions) As a reminder, today's conference call is being recorded.

And at this time, I'll turn the conference over to our first speaker, Vice President of Investor Relations, Dan Gallagher. Please go ahead.

Dan Gallagher

Thank you, Nick. Good morning, everyone. Welcome to Ingevity's First Quarter 2018 Earnings Conference Call. Earlier this morning, we posted a presentation under the Investor section of our website. If you haven't already done so, I would encourage you to download this file so you can follow along on today's call. You can find it by visiting under Events and Presentations.

On Slide Number 2 of that deck, you'll see our disclaimer that today's earnings call may contain forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are contained in our earnings release and in our SEC filings, including our Form 10-K and our most recent Form 10-Q.

Ingevity undertakes no obligation to publicly release any revision to these projections and forward-looking statements made during the call or to update them to reflect events or circumstances occurring after the date of this call. Throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP measures. Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP financial measures are included in our earnings release and can be found on the Investor Relations section of our website.

Our agenda is on Slide Number 3. With me today, as always, are Michael Wilson, President and CEO; and John Fortson, Executive Vice President and CFO. First, Michael will comment on the highlights of the quarter and then review the performance of our two segments. John will discuss our current financial status and our revised guidance, then Mike will make some brief closing remarks before we open the line for Q&A. Mike Smith, President of Performance Chemicals; and Ed Woodcock, President of Performance Materials, will join the call for the Q&A.

And with that, I'll turn it over to Michael.

D. Michael Wilson

Thanks, Dan. Good morning, everyone. Thank you for joining us this morning and for your continued interest in Ingevity.

If you turn to Slide Number 4, you'll note some highlights for the quarter. All in all, we had a great start to the year that was in line with our expectations. Improved market dynamics and product demand, strong execution and the continued benefits of our disciplined cost structure enabled us to post a 34% jump in adjusted EBITDA on high-single-digit revenue growth in the first quarter. Overall, our performance was excellent.

Revenues in the first quarter were about 8% higher when compared to the previous year's quarter. Volumes, price and product mix all contributed to the increase. Volume growth resulted primarily from sales of Performance Materials segment's activated