NewMarket Corp. (NEU, Financial) filed Quarterly Report for the period ended 2009-06-30.
Ethyl Corporation develops manufactures blends and delivers leading-edge additive technology for fuels and lubricants around the world. The company\'s products and services provide the chemistry that makes fuels burn cleaner engines run smoother and machines last longer. The companymanufactures complex custom formulated chemical technology at high utilization operating some of the most efficient specialty chemical plants in the industry. The company pursue operational excellence by focusing on Responsible Care quality improvement and asset management. NewMarket Corp. has a market cap of $1.22 billion; its shares were traded at around $80.08 with a P/E ratio of 15 and P/S ratio of 0.8. The dividend yield of NewMarket Corp. stocks is 1.2%. NewMarket Corp. had an annual average earning growth of 66.3% over the past 5 years.
Income tax expense was $15.7 million for the second quarter 2009 and $9.6 million for second quarter 2008. The effective tax rate was 33.9% for second quarter 2009 and 35.3% for second quarter 2008. The increase in income before income tax expense resulted in an increase of $6.8 million in income taxes, while the decrease in the effective tax rate from 2008 to 2009 resulted in a decrease of approximately $700 thousand in income taxes when comparing the second quarter 2009 and 2008 periods.
Cash used in investing activities was $44.3 million during six months 2009 and included a net return of funds of $10.5 million for a deposit related to the interest rate lock agreement, which is discussed below, as well as funding of $15.9 million for a deposit related to the Goldman Sachs interest rate swap. Further information on the interest rate swap is discussed below and in Note 9 in the Notes to Consolidated Financial Statements. Excluding the construction of the office building by Foundry Park I, we funded capital expenditures of $15.1 million through June 30, 2009. We estimate our total capital spending during 2009, excluding the capital expenditures by Foundry Park I, will be approximately $40 million to $45 million. We expect to continue to finance capital spending, excluding the expenditures for the construction of the office building by Foundry Park I, through cash on hand and cash provided from operations, together with borrowing available under our revolving credit facility.
Cash used in financing activities during six months 2009 amounted to $24.5 million. The use of cash included the funding of dividends of $6.8 million, as well as debt issuance costs of $400 thousand and a payment of $500 thousand on the fourth quarter 2006 acquisition of an intangible asset. Our book overdraft increased $1.4 million.
We had total long-term debt, including the current portion, of $219.0 million at June 30, 2009, representing a decrease of approximately $18.2 million in our total debt since December 31, 2008. The decrease resulted from the payment of $41.9 million under the revolving credit facility and $400 thousand on capital leases, which was partially offset by borrowings on the construction loan of $24.1 million.
At June 30, 2009, we also have a $139.25 million revolving credit facility for general corporate purposes that bears interest at variable rates. The revolving credit facility includes a $75 million sub-facility for letters of credit. The facility matures on December 21, 2011. At June 30, 2009, we had no outstanding borrowings under the revolving credit facility. We had outstanding letters of credit of $4.3 million at June 30, 2009, resulting in the unused portion of the revolver amounting to $135.0 million.
Read the The complete ReportNEU is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc..
Ethyl Corporation develops manufactures blends and delivers leading-edge additive technology for fuels and lubricants around the world. The company\'s products and services provide the chemistry that makes fuels burn cleaner engines run smoother and machines last longer. The companymanufactures complex custom formulated chemical technology at high utilization operating some of the most efficient specialty chemical plants in the industry. The company pursue operational excellence by focusing on Responsible Care quality improvement and asset management. NewMarket Corp. has a market cap of $1.22 billion; its shares were traded at around $80.08 with a P/E ratio of 15 and P/S ratio of 0.8. The dividend yield of NewMarket Corp. stocks is 1.2%. NewMarket Corp. had an annual average earning growth of 66.3% over the past 5 years.
Highlight of Business Operations:
Our consolidated net sales for the second quarter 2009 amounted to $370.9 million, representing a decrease of approximately 13% from the 2008 second quarter level of $425.9 million. Six months 2009 consolidated net sales decreased 12% to $708.0 million as compared to $808.2 million for six months 2008. The table below shows our consolidated segment net sales.Income tax expense was $15.7 million for the second quarter 2009 and $9.6 million for second quarter 2008. The effective tax rate was 33.9% for second quarter 2009 and 35.3% for second quarter 2008. The increase in income before income tax expense resulted in an increase of $6.8 million in income taxes, while the decrease in the effective tax rate from 2008 to 2009 resulted in a decrease of approximately $700 thousand in income taxes when comparing the second quarter 2009 and 2008 periods.
Cash used in investing activities was $44.3 million during six months 2009 and included a net return of funds of $10.5 million for a deposit related to the interest rate lock agreement, which is discussed below, as well as funding of $15.9 million for a deposit related to the Goldman Sachs interest rate swap. Further information on the interest rate swap is discussed below and in Note 9 in the Notes to Consolidated Financial Statements. Excluding the construction of the office building by Foundry Park I, we funded capital expenditures of $15.1 million through June 30, 2009. We estimate our total capital spending during 2009, excluding the capital expenditures by Foundry Park I, will be approximately $40 million to $45 million. We expect to continue to finance capital spending, excluding the expenditures for the construction of the office building by Foundry Park I, through cash on hand and cash provided from operations, together with borrowing available under our revolving credit facility.
Cash used in financing activities during six months 2009 amounted to $24.5 million. The use of cash included the funding of dividends of $6.8 million, as well as debt issuance costs of $400 thousand and a payment of $500 thousand on the fourth quarter 2006 acquisition of an intangible asset. Our book overdraft increased $1.4 million.
We had total long-term debt, including the current portion, of $219.0 million at June 30, 2009, representing a decrease of approximately $18.2 million in our total debt since December 31, 2008. The decrease resulted from the payment of $41.9 million under the revolving credit facility and $400 thousand on capital leases, which was partially offset by borrowings on the construction loan of $24.1 million.
At June 30, 2009, we also have a $139.25 million revolving credit facility for general corporate purposes that bears interest at variable rates. The revolving credit facility includes a $75 million sub-facility for letters of credit. The facility matures on December 21, 2011. At June 30, 2009, we had no outstanding borrowings under the revolving credit facility. We had outstanding letters of credit of $4.3 million at June 30, 2009, resulting in the unused portion of the revolver amounting to $135.0 million.
Read the The complete ReportNEU is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc..
