Valvoline Half-Year Report 2023
Highlights
- Completed sale of Global Products business on March 1, generating $2.38 billion of net proceeds and an after-tax gain on the sale of discontinued operations of $1.15 billion
- Intend to commence a modified “Dutch auction” tender offer for up to $1 billion of Valvoline common stock, subject to market conditions
- Sales from continuing operations of $344.5 million grew 16% and 19% on an adjusted basis1, while system-wide same store sales (SSS) increased 13.5%
- Reported income from continuing operations of $32.9 million grew 43% and earnings per diluted share (EPS) of $0.19 increased 46%
- Continuing operations adjusted EPS of $0.23 increased 64% and adjusted EBITDA of $87.1 million increased 26%
- Net store additions total 35 (19 company-operated and 16 franchised) bringing total system-wide stores to 1,781; focused on continued growth to long-term goal of 3,500+ store count
Balance Sheet and Cash Flow
- Cash and cash equivalents, net of debt of $737.3 million; total debt of $1.6 billion
- Year-to-date continuing operations cash flow from operations of $173.5 million and free cash flow of $94.1 million
- Returned $257.4 million in cash to shareholders year-to-date via share repurchases and $21.8 million in dividends
- Cash and cash equivalents balance of $2.3 billion with $8.3 million of interest income earned on net proceeds from the sale of Global Products
