Albert Chao, President and Chief Executive Officer, stated, "Company is pleased to report another solid quarter as their results continue to significantly outpace the prior year. Although their Olefins segment results were below first quarter performance, they have seen positive signs in June and July of improved business activity, higher selling prices and reduced industry inventories."
For the six months ended June 30, 2005, net income was $109.7 million, or $1.68 per diluted share, on net sales of $1,199.3 million. This compares favorably with the six months ended June 30, 2004 net income of $45.1 million, or $0.91 per diluted share, on net sales of $850.3 million. Income from operations was $184.5 million for the six months ended June 30, 2005 as compared to $92.8 million for the six months ended June 30, 2004. These increases were primarily due to higher sales volumes in their Vinyls segment and higher selling prices for all of olefins and vinyls products which outpaced higher feedstock and energy costs.
EBITDA (earnings before interest expense, income taxes, depreciation and amortization) for the second quarter of 2005 was $101.9 million compared to $85.5 million in the second quarter of 2004 and $122.9 million in the first quarter of 2005. A reconciliation of EBITDA to reported net income and to cash flow from operating activities can be found in the financial tables at the end of this press release.
The company generated strong cash flow from operations of $143.7 million in the first six months of 2005 and repaid $30.6 million of its senior secured notes during that period, leaving it with $109.7 million of cash and $267.5 million of debt on the balance sheet as of June 30, 2005.
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