Kraton Performance Polymers, Inc.

CIK:0001321646|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 1,970,129,000	$ 1,563,150,000	$ 1,804,436,000
Cost of goods sold	1,381,373,000	1,165,279,000	1,390,007,000
Gross profit	588,756,000	397,871,000	414,429,000
Operating expenses:
Research and development	40,406,000	40,743,000	41,073,000
Selling, general, and administrative	164,167,000	161,944,000	149,800,000
Depreciation and amortization	126,475,000	126,022,000	136,171,000
Impairment of goodwill	0	400,000,000	0
Gain on insurance proceeds	0	0	(32,850,000)
Loss on disposal of fixed assets	879,000	750,000	773,000
Operating income (loss)	256,829,000	(331,588,000)	119,462,000
Other income (expense)	(209,000)	995,000	3,339,000
Gain (loss) on disposition and exit of business activities	(149,000)	175,189,000	0
Loss on extinguishment of debt	0	(40,843,000)	(3,521,000)
Earnings of unconsolidated joint venture	461,000	457,000	506,000
Interest expense, net	(41,840,000)	(57,930,000)	(75,782,000)
Income (loss) before income taxes	215,092,000	(253,720,000)	44,004,000
Income tax benefit (expense)	(39,502,000)	32,034,000	11,813,000
Consolidated net income (loss)	175,590,000	(221,686,000)	55,817,000
Net income attributable to noncontrolling interest	(5,364,000)	(3,916,000)	(4,512,000)
Net income (loss) attributable to Kraton	$ 170,226,000	$ (225,602,000)	$ 51,305,000
Earnings (loss) per common share:
Basic (in dollars per share)	$ 5.30	$ (7.08)	$ 1.61
Diluted (in dollars per share)	$ 5.21	$ (7.08)	$ 1.60
Weighted average common shares outstanding:
Basic (in shares)	32,098	31,746	31,581
Diluted (in shares)	32,642	31,746	31,881

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income (loss)	$ 175,590,000	$ (221,686,000)	$ 55,817,000
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Depreciation and amortization	126,475,000	126,022,000	136,171,000
Lease amortization	24,208,000	24,488,000	23,093,000
Amortization of debt premium and original issue discount	0	148,000	1,064,000
Amortization of debt issuance costs	2,535,000	3,045,000	4,654,000
Amortization of deferred income	(27,474,000)	(20,054,000)	0
Loss on disposal of property, plant, and equipment	879,000	750,000	773,000
Disposition and exit of business activities	149,000	(175,189,000)	0
Loss on extinguishment of debt	0	40,843,000	3,521,000
Impairment of goodwill	0	400,000,000	0
(Earnings) loss from unconsolidated joint venture, net of dividends received	6,000	50,000	(62,000)
Deferred income tax benefit	(3,553,000)	(56,114,000)	(159,000)
Release of uncertain tax positions	0	(2,445,000)	(18,309,000)
Gain on insurance proceeds for capital expenditures	0	0	(3,948,000)
Share-based compensation	11,342,000	11,361,000	9,493,000
Decrease (increase) in:
Accounts receivable	(57,762,000)	(563,000)	5,848,000
Inventories of products, materials, and supplies	(133,463,000)	18,234,000	46,533,000
Other assets	(10,931,000)	483,000	10,986,000
Increase (decrease) in:
Accounts payable-trade	76,782,000	352,000	(3,472,000)
Other payables and accruals	1,187,000	5,595,000	(20,018,000)
Other long-term liabilities	(16,196,000)	(2,900,000)	(13,401,000)
Due to related party	1,451,000	(1,089,000)	(3,644,000)
Net cash provided by operating activities	171,225,000	151,331,000	234,940,000
CASH FLOWS FROM INVESTING ACTIVITIES
Kraton purchase of property, plant, and equipment	(90,454,000)	(73,893,000)	(103,688,000)
KFPC purchase of property, plant, and equipment	(365,000)	(4,132,000)	(965,000)
Purchase of software and other intangibles	(10,395,000)	(7,943,000)	(8,019,000)
Insurance proceeds for capital expenditures	0	0	3,948,000
Cash proceeds (payments) from disposition and exit of business activities	(5,802,000)	510,500,000	0
Net cash provided by (used in) investing activities	(107,016,000)	424,532,000	(108,724,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	107,500,000	477,000,000	57,941,000
Repayments of debt	(107,500,000)	(967,967,000)	(198,053,000)
KFPC proceeds from debt	62,407,000	71,949,000	34,240,000
KFPC repayments of debt	(85,633,000)	(90,577,000)	(59,700,000)
Finance lease payments	(1,029,000)	(179,000)	(169,000)
Purchase of treasury stock	(4,946,000)	(847,000)	(12,821,000)
Proceeds from the exercise of stock options	6,399,000	78,000	2,424,000
Settlement of interest rate swap	0	(1,295,000)	0
Distribution to non-controlling interest	(102,000)	0	0
Debt issuance costs	0	(9,095,000)	0
Net cash used in financing activities	(22,904,000)	(520,933,000)	(176,138,000)
Effect of exchange rate differences on cash	3,313,000	(4,062,000)	(936,000)
Net increase (decrease) in cash and cash equivalents	44,618,000	50,868,000	(50,858,000)
Cash and cash equivalents, beginning of period	85,901,000	35,033,000	85,891,000
Cash and cash equivalents, end of period	130,519,000	85,901,000	35,033,000
Supplemental disclosures during the period:
Cash paid for income taxes, net of refunds received	26,326,000	6,917,000	7,804,000
Cash paid for interest, net of capitalized interest	36,948,000	66,757,000	56,407,000
Capitalized interest	3,429,000	3,099,000	3,625,000
Supplemental non-cash disclosures increase (decrease) during the period:
Property, plant, and equipment accruals	3,551,000	(9,785,000)	2,277,000
Operating leases	$ 34,141,000	$ 19,928,000	$ 105,308,000

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 130,519	$ 85,901
Receivables, net of allowances of $684 and $598	230,939	180,258
Inventories of products	443,025	318,885
Inventories of materials and supplies	34,315	34,164
Prepaid expense	8,631	11,844
Other current assets	28,935	15,338
Total current assets	876,364	646,390
Property, plant, and equipment, less accumulated depreciation of $791,835 and $732,279	934,843	942,703
Goodwill	372,917	375,061
Intangible assets, less accumulated amortization of $366,001 and $330,070	260,965	294,734
Investment in unconsolidated joint venture	12,023	12,723
Deferred income taxes	79,627	83,534
Long-term operating lease assets, net	97,051	84,042
Other long-term assets	20,818	21,770
Total assets	2,654,608	2,460,957
Current liabilities:
Current portion of long-term debt	68,694	72,347
Accounts payable-trade	251,992	176,229
Other payables and accruals	195,927	167,364
Due to related party	17,170	17,147
Total current liabilities	533,783	433,087
Long-term debt, net of current portion	818,572	865,516
Deferred income taxes	128,910	125,559
Long-term operating lease liabilities	78,617	67,898
Deferred income	120,646	151,329
Other long-term liabilities	126,076	168,566
Total liabilities	1,806,604	1,811,955
Commitments and contingencies (note 11)
Kraton stockholders’ equity:
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued	0	0
Common stock, $0.01 par value; 500,000 shares authorized; 32,230 shares issued and outstanding at December 31, 2021; 31,873 shares issued and outstanding at December 31, 2020	322	319
Additional paid in capital	415,310	401,445
Retained earnings	409,617	240,464
Accumulated other comprehensive loss	(27,921)	(37,865)
Total Kraton stockholders’ equity	797,328	604,363
Noncontrolling interest	50,676	44,639
Total equity	848,004	649,002
Total liabilities and equity	$ 2,654,608	$ 2,460,957