Item 5. Market for Registrant’s Common Equity
Item 5
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information and Holders
The Company’s common stock is listed on the NASDAQ under the symbol “IOSP.” As of February 10, 2021 there were 758 registered holders of the common stock.
Unregistered Sales of Equity Securities
There were no unregistered sales of equity securities during the fourth quarter of 2020.
Issuer Purchases of Equity Securities
During 2020 the Company made no open market repurchases of our common stock.
On November 6, 2018 the Company announced that its board of directors had approved a share repurchase program for the repurchase of up to $100 million of Innospec’s common stock over the following three years. During the year ended December 31, 2020, no shares of our common stock were repurchased by the Company under this share repurchase program.
During the quarter ended December 31, 2020 the company did not purchase any of its common stock in connection with the exercising of stock options by employees.
Stock Price Performance Graph
The graph below compares the cumulative total return to stockholders on the common stock of the Corporation, S&P 500 Index, NASDAQ Composite Index and Russell 2000 Index since December 31, 2015, assuming a $100 investment and the re-investment
of any dividends thereafter. Historical stock price performance should not be relied upon as an indication of future stock price performance.
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Value of $100 Investment made December 31, 2015*
2015
2016
2017
2018
2019
2020
Innospec Inc.
$
100.00
$
127.36
$
132.70
$
117.76
$
199.17
$
176.70
S&P 500 Index
100.00
111.96
136.40
130.42
171.49
203.04
NASDAQ Composite Index
100.00
108.09
140.12
135.09
186.79
269.70
Russell 2000 Index
$
100.00
$
121.31
$
139.08
$
123.76
$
155.35
$
186.36
* Excludes purchase commissions.
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Item 6
Selected Financial Data
FINANCIAL HIGHLIGHTS
(in millions, except financial ratios, share and per
share data)
2020
2019
2018
2017
2016
Summary of performance:
Net sales
$
1,193.1
$
1,513.3
$
1,476.9
$
1,306.8
$
883.4
Operating income
33.7
149.9
133.5
125.0
98.2
Income before income taxes
39.7
150.4
131.6
128.1
103.1
Income taxes
(11.0
)
(38.2
)
(46.6
)
(66.3
)
(21.8
)
Net income
28.7
112.2
85.0
61.8
81.3
Net income attributable to Innospec Inc.
28.7
112.2
85.0
61.8
81.3
Net cash provided by operating activities
$
145.9
$
161.6
$
104.9
$
82.7
$
105.5
Financial position at year end:
Total assets
$
1,397.4
$
1,468.8
$
1,473.4
$
1,410.2
$
1,181.4
Long-term debt including finance leases (including current portion)
0.6
60.1
210.9
224.3
273.3
Cash, cash equivalents, and short-term investments
105.3
75.7
123.1
90.2
101.9
Total equity
$
944.9
$
918.9
$
825.5
$
794.3
$
653.8
Financial ratios:
Net income attributable to Innospec Inc. as a percentage of net sales
2.4
7.4
5.8
4.7
9.2
Effective tax rate as a percentage (1)
27.7
25.4
35.4
51.8
21.1
Current ratio (2)
2.3
2.1
2.2
2.1
2.4
Share data:
Earnings per share attributable to Innospec Inc.
– Basic
$
1.17
$
4.58
$
3.48
$
2.56
$
3.39
– Diluted
$
1.16
$
4.54
$
3.45
$
2.52
$
3.33
Dividend paid per share
$
1.04
$
1.02
$
0.89
$
0.77
$
0.67
Shares outstanding (basic, thousands)
– At year end
24,596
24,507
24,434
24,350
24,071
– Average during year
24,563
24,482
24,401
24,148
23,998
(1)
The effective tax rate is calculated as income taxes as a percentage of income before income taxes. Income taxes are impacted in 2017 by the provisional estimates recorded in respect of the Tax Cuts and Jobs Act of 2017 (“Tax Act”), and in 2018 by the finalization and recording of additional taxes due as a consequence of the Tax Act. Income taxes in 2019 and 2020 are calculated under the new legislation of the Tax Act.
(2)
Current ratio is defined as current assets divided by current liabilities.
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QUARTERLY SUMMARY
(in millions, except per share data)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2020
Net sales
$
372.3
$
244.9
$
265.1
$
310.8
Gross profit
113.9
59.1
78.7
91.0
Operating income
40.9
(53.4
)
16.8
29.4
Net income
33.1
(39.7
)
12.7
22.6
Net cash provided by operating activities
$
2.4
$
29.8
$
55.5
$
58.2
Per common share:
Earnings – basic
$
1.35
$
(1.62
)
$
0.52
$
0.92
– diluted
$
1.34
$
(1.62
)
$
0.51
$
0.91
2019
Net sales
$
388.3
$
362.4
$
371.9
$
390.7
Gross profit
117.8
111.1
119.1
118.2
Operating income
36.2
31.7
38.2
43.8
Net income
28.7
22.3
30.1
31.1
Net cash provided by operating activities
$
13.2
$
50.0
$
40.0
$
58.4
Per common share:
Earnings – basic
$
1.17
$
0.91
$
1.23
$
1.27
– diluted
$
1.17
$
0.90
$
1.22
$
1.26
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