Investor Relations

Glossary of Financial Measures

Following is a glossary of financial measures which management will often reference when evaluating historical financial performance or providing forward-looking statements. These financial terms are defined using financial statement captions as included within Ingevity’s financial statements filed with the Securities and Exchange Commission (SEC) unless otherwise stated.

EBIT
Net income (loss) plus interest expense, net and provision for income taxes
EBITDA
Net income (loss) plus interest expense, net, provision for income taxes, depreciation and amortization
Adjusted EBIT
Net income (loss) plus interest expense, net, provision for income taxes, separation costs and restructuring and other (income) charges.
Adjusted EBITDA
Net income (loss) plus interest expense, net, provision for income taxes, separation costs and restructuring and other (income) charges, depreciation and amortization.
Adjusted EBITDA Margin
Adjusted EBITDA divided by net sales.
Segment EBITDA
Segment operating profit plus depreciation and amortization.
Adjusted Tax Rate
Calculated by dividing the provision for income taxes on Adjusted Earnings by the Adjusted Earnings before income taxes and noncontrolling interests.
Adjusted Earnings (Loss)
Net income (loss) attributable to Ingevity stockholders plus separation costs and restructuring and other (income) charges net of the income tax effect on those items.
Diluted Adjusted Earnings (Loss) per Share
Diluted earnings (loss) per common share attributable to Ingevity stockholders plus separation costs per share, restructuring and other (income) charges per share net of the income tax effect on those items per share.
Net Debt
The sum of short-term debt, current portion of long-term debt, long-term debt and deferred financing fees less the sum of cash and cash equivalents and restricted cash.
Free Cash Flow
Sum of cash provided (required) by the following items: operating activities less capital expenditures.
ROA (Return on Assets)
Combined adjusted EBIT divided by total assets less cash and cash equivalents
Pro Forma Adjusted Non-GAAP Financial Measures
Applicable only to quarterly periods within and fiscal years ended December 31, 2015 and 2014, respectively. The Non-GAAP financial measures: Adjusted EBITDA; Segment EBITDA; Adjusted Earnings (Loss) and Diluted Adjusted Earnings (Loss) per Share were adjusted for unaudited pro forma adjustments. The Unaudited Pro Forma Adjustments are from our Unaudited Pro Forma Combined Financial Statements which were derived from the historical Combined Financial Statements of Ingevity, prepared in accordance with U.S. generally accepted accounting principles.
Business Wire InvestorHQsm