NewMarket Corp. (NEU, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $1.52 billion; its shares were traded at around $100.25 with a P/E ratio of 10.5 and P/S ratio of 0.9. The dividend yield of Newmarket Corp. stocks is 1%. Newmarket Corp. had an annual average earning growth of 66.3% over the past 5 years.
Other expense, net for third quarter 2009 was $3.8 million, while nine months 2009 was $15.7 million. The amount in both 2009 periods represents an unrealized loss on a derivative instrument representing an interest rate swap recorded at fair value, which we entered into on June 25, 2009. See Note 9 in the Notes to Consolidated Financial Statements for additional information on the interest rate swap. Other income, net was $200 thousand for third quarter 2008 and $900 thousand for nine months 2008 and primarily represented investment income earned on excess cash.
Nine months 2009 income tax expense was $60.4 million with an effective tax rate of 34.2%. Income tax expense for nine months 2008 was $26.2 million with an effective tax rate of 32.7%. The increase in income before income tax expense from 2008 to 2009 resulted in an increase of $31.6 million. The higher effective tax rate for nine months 2009 resulted in an increase in income tax expense of $2.6 million.
Cash used in financing activities during nine months 2009 amounted to $10.6 million. The use of cash included the funding of dividends of $10.6 million, as well as debt issuance costs of $400 thousand and a payment of $750 thousand on the fourth quarter 2006 acquisition of an intangible asset. Our book overdraft increased $1.9 million.
We had total long-term debt, including the current portion, of $236.4 million at September 30, 2009, representing a decrease of approximately $800 thousand in our total debt since December 31, 2008. The decrease resulted from the payment of $41.9 million under the revolving credit facility and $600 thousand on capital leases, which was substantially offset by borrowings on the construction loan of $41.7 million.
At September 30, 2009, we also had 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 September 30, 2009, we had no outstanding borrowings under the revolving credit facility. We had outstanding letters of credit of $4.6 million at September 30, 2009, resulting in the unused portion of the revolver amounting to $134.7 million.
Read the The complete ReportNEU is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Prem Watsa of Fairfax Financial Holdings, 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 $1.52 billion; its shares were traded at around $100.25 with a P/E ratio of 10.5 and P/S ratio of 0.9. The dividend yield of Newmarket Corp. stocks is 1%. Newmarket Corp. had an annual average earning growth of 66.3% over the past 5 years.
Highlight of Business Operations:
Interest and financing expenses were $2.9 million for third quarter 2009 and $3.0 million for third quarter 2008. Nine months 2009 amounted to $8.7 million, while nine months 2008 was $8.9 million.Other expense, net for third quarter 2009 was $3.8 million, while nine months 2009 was $15.7 million. The amount in both 2009 periods represents an unrealized loss on a derivative instrument representing an interest rate swap recorded at fair value, which we entered into on June 25, 2009. See Note 9 in the Notes to Consolidated Financial Statements for additional information on the interest rate swap. Other income, net was $200 thousand for third quarter 2008 and $900 thousand for nine months 2008 and primarily represented investment income earned on excess cash.
Nine months 2009 income tax expense was $60.4 million with an effective tax rate of 34.2%. Income tax expense for nine months 2008 was $26.2 million with an effective tax rate of 32.7%. The increase in income before income tax expense from 2008 to 2009 resulted in an increase of $31.6 million. The higher effective tax rate for nine months 2009 resulted in an increase in income tax expense of $2.6 million.
Cash used in financing activities during nine months 2009 amounted to $10.6 million. The use of cash included the funding of dividends of $10.6 million, as well as debt issuance costs of $400 thousand and a payment of $750 thousand on the fourth quarter 2006 acquisition of an intangible asset. Our book overdraft increased $1.9 million.
We had total long-term debt, including the current portion, of $236.4 million at September 30, 2009, representing a decrease of approximately $800 thousand in our total debt since December 31, 2008. The decrease resulted from the payment of $41.9 million under the revolving credit facility and $600 thousand on capital leases, which was substantially offset by borrowings on the construction loan of $41.7 million.
At September 30, 2009, we also had 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 September 30, 2009, we had no outstanding borrowings under the revolving credit facility. We had outstanding letters of credit of $4.6 million at September 30, 2009, resulting in the unused portion of the revolver amounting to $134.7 million.
Read the The complete ReportNEU is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Prem Watsa of Fairfax Financial Holdings, Inc..
