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
Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “OEC”. As of February 9, 2021, the closing price of our common stock on the NYSE was $17.61, and we had nine stockholders of record.
During the fiscal year ended December 31, 2020, we did not sell any equity securities that were not registered under the Securities Act.
From time to time, we may repurchase our common stock in the open market pursuant to programs approved by our Board. During fiscal years ended December 31, 2020 and 2019, we did not repurchase any shares of our common stock.
The information required by Item 201(d) of Regulation S-K is incorporated by reference to the Proxy Statement (as defined in Item 10 below) under the heading “Equity Compensation Plan Information at December 31, 2020.”
Dividend Policy
In accordance with the Luxembourg Company Law, the general meeting of shareholders has the power to make a resolution on the payment of dividends upon the recommendation of the Board of Directors. In deciding whether to recommend any future dividend, the Board of Directors would take into account any legal or contractual limitation, our actual and anticipated future earnings, cash flows, debt service and capital requirements, our business plans and such other matters as the Board of Directors believes appropriate, in its discretion. Generally, any dividend approved by a general meeting of shareholders would be paid out shortly after the meeting.
During the fiscal year 2020, our board of directors declared dividends of $0.20 per common share for the quarter ended March 31, 2020, equivalent to a total distribution of $12.0 million. Declaration of and payments of dividends were suspended for the remainder of the year as a result of the soft global business environment due to COVID-19. Luxembourg withholding tax at a rate of 15% was deducted from the dividends, subject to certain exemptions and reductions in certain circumstances.
Item 6. Selected Financial Data
The following tables set forth selected historical financial information for fiscal years December 31, 2020, 2019, 2018, 2017 and 2016 and as of December 31, 2020, 2019, 2018, 2017 and 2016. The financial information for fiscal years 2020, 2019 and 2018 and balance sheet information as of December 31, 2020 and 2019 has been derived from our audited consolidated financial statements included elsewhere in this report. The balance sheet information as of December 31, 2018 and financial information for fiscal year 2017 has been derived from our audited consolidated financial statements included in our Annual Report for the year ended December 31, 2019 on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”). The balance sheet information as of December 31, 2017 and 2016 and the financial information for fiscal year 2016 has been derived from our audited consolidated financial statements included in our Annual Report for the year ended 2018 on Form 20-F, filed with the SEC. This information should be read in conjunction with the consolidated financial statements included elsewhere in this report, the related notes and other financial information included herein, and financial information previously filed with or furnished to the SEC.
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Consolidated Statements of Operations Data
Year Ended December 31,
2020 2019 2018 2017 2016
(In millions, except per share amounts)
Net sales $ 1,136.4 $ 1,476.4 $ 1,578.2 $ 1,328.3 $ 1,139.3
Cost of sales 844.0 1,086.6 1,148.2 950.7 764.9
Gross profit 292.3 389.7 430.0 377.6 374.4
Selling, general and administrative expenses 176.1 206.9 231.9 207.5 202.5
Research and development costs 20.2 19.9 20.3 18.2 16.1
Other expenses, net 14.1 12.2 6.1 7.6 9.0
Restructuring income — — 40.3 — —
Restructuring expenses 7.6 3.6 15.6 6.5 30.0
Income from operations 74.4 147.2 196.3 137.9 116.8
Interest and other financial expense, net 38.7 27.6 28.6 44.1 43.3
Reclassification of actuarial losses from AOCI 9.9 — — 9.7 0.1
Income from operations before income tax expense and equity in earnings of affiliated companies 25.8 119.6 167.7 84.0 73.4
Income tax expense 8.1 33.2 46.9 19.7 24.4
Equity in earnings of affiliated companies, net of tax 0.5 0.6 0.6 0.5 0.5
Net income $ 18.2 $ 86.9 $ 121.3 $ 64.9 $ 49.5
Earnings per share - basic $ 0.30 $ 1.45 $ 2.04 $ 1.09 $ 0.83
Earnings per share - diluted $ 0.30 $ 1.42 $ 1.99 $ 1.07 $ 0.82
Dividends per share $ 0.20 $ 0.80 $ 0.80 $ 0.77 $ 0.74
Statement of Cash Flows Data
Year Ended December 31,
2020 2019 2018 2017 2016
(In millions)
Net cash provided by operating activities $ 125.3 $ 231.5 $ 122.0 $ 147.7 $ 177.4
Net cash used in investing activities (144.9) (155.8) (88.1) (90.3) (68.5)
Net cash provided by (used in) financing activities 13.5 (68.6) (43.8) (68.5) (101.8)
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Balance Sheet Data
Year Ended December 31,
2020 2019 2018 2017 2016
(In millions)
Cash and cash equivalents $ 64.9 $ 63.7 $ 57.0 $ 72.3 $ 77.9
Property, plant and equipment 610.5 534.1 483.5 462.1 409.9
Total assets 1,389.8 1,257.4 1,273.0 1,164.4 1,055.5
Total liabilities 1,208.8 1,071.4 1,114.1 1,069.1 1,000.8
Total stockholders' equity (1)
181.0 186.0 158.9 95.3 54.7
(1) Our share capital as of December 31, 2020 is denominated in Euro and was €60,992,259 (a USD-equivalent amount of $74,843,601, respectively, applying a closing rate of 1.2271 US-Dollar per 1 Euro), represented by 60,992,259 common shares with no par value of which 505,142 common shares are held in treasury.
The following tables present a reconciliation of the non-GAAP measure Adjusted EBITDA to net income (See “ Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP Financial Measures ” for further details on non-GAAP measures):
Reconciliation of profit or (loss) Year Ended December 31,
2020 2019 2018 2017 2016
(In millions)
Net income $ 18.2 $ 86.9 $ 121.3 $ 64.9 $ 49.5
Add back income tax expense 8.1 33.2 46.9 19.7 24.4
Add back equity in earnings of affiliated companies, net of tax (0.5) (0.6) (0.6) (0.5) (0.5)
Income from operations before income taxes and equity in earnings of affiliated companies 25.8 119.6 167.7 84.0 73.4
Add back interest and other financial expense, net 38.7 27.6 28.6 44.1 43.3
Reclassification of actuarial losses from AOCI 9.9 — — 9.7 0.1
Earnings before income taxes and finance income/costs 74.4 147.2 196.3 137.9 116.8
Add back depreciation, amortization and impairment of intangible assets and property, plant and equipment 96.5 96.7 98.2 98.4 97.1
EBITDA 170.9 243.9 294.5 236.2 214.0
Equity in earnings of affiliated companies, net of tax 0.5 0.6 0.6 0.5 0.5
Restructuring expenses/(income) 7.6 3.6 (24.6) 5.2 19.8
Consulting fees related to Company strategy — 1.3 4.8 2.8 2.8
Extraordinary expense items related to COVID-19 3.9 — — — —
Long term incentive plan 4.4 9.4 13.9 8.8 4.0
EPA-related expenses 5.2 4.0 2.7 2.4 4.6
Other adjustments 7.6 4.6 2.3 0.9 1.2
Adjusted EBITDA $ 200.0 $ 267.3 $ 294.1 $ 257.0 $ 246.7
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.