Newmarket (NEU) Q3 FY2023 earnings: revenue $667 million, down 4.2% on the year

Newmarket Corp. (NEU) reported revenue of $667 million for Q3 FY2023, the quarter ended 30 September 2023, down 4.2% on the same quarter a year earlier. Net income was $111 million, up 76.0% on the year, and diluted earnings per share $11.60. The figures are the company's own, from the 10-Q it filed with the SEC on 26 October 2023.

Revenue$667 milliondown 4.2%

Net income$111 millionup 76.0%

Diluted EPS$11.60

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	667	n/a	n/a	n/a
Cost of revenue	465	n/a	n/a	n/a
Gross profit	202	n/a	n/a	n/a
Gross margin	30.2%	n/a	n/a
Research and development	31.9	n/a	n/a	n/a
Selling, general and administrative	37.4	n/a	n/a	n/a
Operating income	132	n/a	n/a	n/a
Operating margin	19.8%	n/a	n/a
Interest expense	9.2	n/a	n/a	n/a
Pre-tax income	134	n/a	n/a	n/a
Income tax	23.2	n/a	n/a	n/a
Effective tax rate	17.3%	n/a	n/a
Net income	111	n/a	n/a	n/a
Net margin	16.7%	n/a	n/a
Diluted EPS	$11.60	n/a	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	143	n/a	n/a	n/a
Capital expenditure	8.8	n/a	n/a	n/a
Free cash flow	134	n/a	n/a	n/a
Free cash flow margin	20.1%	n/a	n/a
Cash from investing	-8.8	n/a	n/a	n/a
Cash from financing	-160	n/a	n/a	n/a
Depreciation and amortisation	17.1	n/a	n/a	n/a
Buybacks	0.0	n/a	n/a	n/a
Dividends paid	21.6	n/a	n/a	n/a
Dividend per share	$2.25	n/a	n/a	n/a
Diluted shares, weighted	10m	n/a	n/a	n/a
Shares outstanding at period end	10m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Shareholders' equity	972	n/a	n/a	n/a
Debt	779	n/a	n/a	n/a
Operating lease liabilities	49.1	n/a	n/a	n/a
Other liabilities	490	n/a	n/a	n/a
Total liabilities and equity	2,290	n/a	n/a	n/a
Fixed assets	650	n/a	n/a	n/a
Cash and equivalents	103	n/a	n/a	n/a
Receivables	428	n/a	n/a	n/a
Inventory	503	n/a	n/a	n/a
Other assets	607	n/a	n/a	n/a
Total assets	2,290	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	667	643	697	710	725	655	701	699	690	635	670	747
Cost of revenue	465	466	480	492	481	447	465	478	481	445	449	505
Gross profit	202	177	216	218	244	208	236	221	210	191	221	242
Gross margin	30%	28%	31%	31%	34%	32%	34%	32%	30%	30%	33%	32%
R&D	31.9	39.0	31.2	28.7	32.2	32.8	33.2	32.4	35.0	31.5	31.6	30.4
SG&A	37.4	36.8	44.4	42.8	42.1	42.1	43.0	45.4	43.9	49.2	46.0	48.4
Operating income	132	101	141	147	170	133	160	143	131	110	143	164
Operating margin	20%	16%	20%	21%	23%	20%	23%	20%	19%	17%	21%	22%
Interest expense	9.2	7.1	15.7	15.9	14.2	11.6	10.7	10.7	8.4	9.9	8.8	8.8
Pre-tax income	134	105	138	143	169	134	164	148	136	113	152	170
Tax rate	17%	23%	22%	22%	22%	18%	23%	25%	26%	28%	22%	21%
Net income	111	80.4	108	112	132	111	126	111	100	81.3	118	134
Net margin	17%	12%	15%	16%	18%	17%	18%	16%	15%	13%	18%	18%
Diluted EPS	$11.60	$8.38	$11.23	$11.63	$13.79	$11.56	$13.26	$11.84	$10.67	$8.65	$12.62	$14.54
Operating cash flow	143	172	103	115	117	185	120	161	142	145	124	162
Capital expenditure	8.8	13.5	13.6	18.9	17.3	14.6	13.0	21.6	30.1	28.0	24.4	27.4
Free cash flow	134	158	89.3	96.0	99.2	171	107	140	112	117	99.7	135
Buybacks	0.0	0.0	0.0	0.0	0.0	31.9	57.1	20.2	0.0	0.0	126	0.9
Dividends paid	21.6	21.6	24.0	24.0	24.0	23.9	26.1	25.8	25.8	28.2	28.0	27.6
Shares outstanding	10m	10m	10m	10m	10m	10m	9m	9m	9m	9m	9m	9m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 26 October 2023, accession 0001282637-23-000019: the filing on EDGAR. All of Newmarket Corp.'s filings: EDGAR company page.

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