Q1'24 net sales of $469.8 million, net income of $35.2 million and earnings per diluted share of $1.95 Q1'24 non-GAAP net income of $37.7 million and non-GAAP earnings per diluted share of $2.09 Delivered adjusted EBITDA of $83.3 million in Q1'24, a 6% increase compared to $78.8 million in Q1'23 Gross margins improved 400 basis points compared to the prior year, the 7th consecutive quarterly year-over-year increase Generated $27.2 million of operating cash flow in Q1'24 CONSHOHOCKEN, Pa., May 2, 2024 /PRNewswire/ -- Quaker Houghton ("the Company") (NYSE:KWR), the global leader in industrial process fluids, announced its first quarter 2024 results today.  Three Months EndedMarch 31, ($ in thousands, except per share data) 2024 2023 Net sales $           469,759 $           500,148 Net income attributable to Quaker Chemical Corporation 35,227 29,534 Net income attributable to Quaker Chemical Corporation common shareholders – diluted 1.95 1.64 Non-GAAP net income * 37,673 33,992 Non-GAAP Earnings per diluted share * 2.09 1.89 Adjusted EBITDA * 83,282 78,791 *   Refer to the Non-GAAP Measures and Reconciliations section below for additional information First Quarter 2024 Consolidated Results Net sales in the first quarter of 2024 were $469.8 million, a decline of approximately 6% compared to $500.1 million in the first quarter of 2023.  This result was primarily due to a decrease in selling price and product mix of approximately 5%, and a decline in sales volumes of approximately 1%.  The decrease in selling price and product mix was primarily attributable to our index-based customer contracts.  The decline in sales volumes was primarily attributable to a continuation of softer end market conditions that persisted throughout 2023 and have continued into the current year and partially offset by an improvement in volumes in the Asia/Pacific segment and new business wins across all segments. The Company reported net income in the first quarter of 2024 of $35.2 million, or $1.95 per diluted share, compared to net income of $29.5 million, or $1.64 per diluted share, in the first quarter of 2023.  Excluding non-recurring and non-core items in each period, the Company's non-GAAP net income and earnings per diluted share were $37.7 million and $2.09 respectively in the first quarter of 2024 compared to $34.0 million and $1.89 respectively in the prior year quarter.  The Company generated adjusted EBITDA of $83.3 million in the first quarter of 2024, an increase of 6% compared to $78.8 million in the first quarter of 2023, primarily driven by an improvement in gross margins in all segments compared to the prior year.  Andy Tometich, Chief Executive Officer and President, commented, "Quaker Houghton started 2024 with strong results delivering another quarter of earnings growth and solid cash flow generation.  Our results reflect our ongoing ability to generate value for customers through our differentiated portfolio of services and solutions as well as the continued execution on our financial and operational priorities." "While the global macroeconomic environment remains dynamic, we are well positioned and committed to delivering volume and earnings growth in 2024.  We are confident in our enterprise strategy.  The investments we are making are expected to enhance our team's ability to outperform our end markets.  Additionally, our balance sheet and cash flow generation capabilities remain strong and provide opportunities to accelerate our profitable growth initiatives and create long-term shareholder value." First Quarter 2024 Segment Results The Company's first quarter 2024 operating performance for each of its three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific, is further described below.  Three Months EndedMarch 31, 2024 2023 Net Sales * Americas $         229,754 $         251,413 EMEA 138,422 152,449 Asia/Pacific 101,583 96,286 Total net sales $         469,759 $         500,148 Segment operating earnings * Americas $           66,770 $           66,125 EMEA 29,571 27,571 Asia/Pacific 30,377 27,652 Total segment operating earnings $         126,718 $         121,348 *   Refer to the Segment Measures and Reconciliations section below for additional information  Net sales in the Americas and EMEA segments decreased in the first quarter of 2024 compared to the same period in 2023 primarily due to a decrease in sales volumes and selling price and product mix, partially offset by a favorable impact from foreign currency translation.  Net sales in the Asia/Pacific segment increased compared to the prior year as a result of a double-digit increase in sales volumes, partially offset by a decrease in selling price and product mix and an unfavorable impact of foreign currency translation.  The decline in selling price and product mix in the first quarter of 2024 compared to the prior year in all segments primarily reflects the impact of our index-based customer contracts.  The decline in sales volumes in the Americas and EMEA segments primarily reflects softer end market activity, especially for metalworking applications, compared to the prior year, partially offset by new business wins.  Sales volumes increased in the Asia/Pacific segment compared to the prior year due to a broad improvement in end market conditions and continued new business wins. Compared to the fourth quarter of 2023, net sales increased 1% due to an increase in sales volumes of approximately 2% partially offset by a decline in selling price and product mix of approximately 1%.  Sales volumes in the Americas and EMEA segments increased compared to the prior quarter, whereas sales volumes declined in the Asia/Pacific segment.  Selling price and product mix was down modestly across all segments reflecting the impact of our index-based customer contracts.  Once again, operating earnings increased in all three segments in the first quarter of 2024 compared to the prior year driven by a further improvement in operating margins.  Operating earnings and operating margins also increased in the Americas and EMEA segments in the first quarter of 2024 compared to the fourth quarter of 2023 and declined modestly in the Asia/Pacific segment reflecting the decrease in net sales mentioned above. Cash Flow and Liquidity Highlights Net cash provided by operating activities was $27.2 million for the three months ended March 31, 2024, compared to net cash provided by operating activities of $37.8 million for the same period in 2023.  The Company's operating cash flow primarily reflects a stronger operating performance when compared to the prior year period, partially offset by higher working capital requirements in the three months ended March 31, 2024.  As of March 31, 2024, the Company's total gross debt was $769.6 million and its cash and cash equivalents was $195.8 million, which resulted in net debt of approximately $573.8 million.  The Company's net debt divided by its trailing twelve months adjusted EBITDA was approximately 1.8x.  Non-GAAP Measures and Reconciliations The information included in this press release includes non-GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per diluted share.  The Company believes these non-GAAP financial measures provide meaningful supplemental information as they enhance a reader's understanding of the financial performance of the Company, are indicative of future operating performance of the Company, and facilitate a comparison among fiscal periods, as the non-GAAP financial measures exclude items that are not considered indicative of future operating performance or not considered core to the Company's operations.  Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with GAAP. In addition, our definitions of EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per diluted share as discussed and reconciled below to the most comparable respective GAAP measures, may not be comparable to similarly named measures reported by other companies.  The Company presents EBITDA which is calculated as net income attributable to the Company before depreciation and amortization, interest expense, net, and taxes on income before equity in net income of associated companies.  The Company also presents adjusted EBITDA which is calculated as EBITDA plus or minus certain items that are not considered indicative of future operating performance or not considered core to the Company's operations. In addition, the Company presents non-GAAP operating income which is calculated as operating income plus or minus certain items that are not considered indicative of future operating performance or not considered core to the Company's operations.  Adjusted EBITDA margin and non-GAAP operating margin are calculated as the percentage of adjusted EBITDA and non-GAAP operating income to consolidated net sales, respectively.  The Company believes these non-GAAP measures provide transparent and useful information and are widely used by investors, analysts, and peers in our industry as well as by management in assessing the operating performance of the Company on a consistent basis.  Additionally, the Company presents non-GAAP net income and non-GAAP earnings per diluted share as additional performance measures.  Non-GAAP net income is calculated as adjusted EBITDA, defined above, less depreciation and amortization, interest expense, net, and taxes on income before equity in net income of associated companies, in each case adjusted, as applicable, for any depreciation, amortization, interest or tax impacts resulting from the non-core items identified in the reconciliation of net income attributable to the Company to adjusted EBITDA.  Non-GAAP earnings per diluted share is calculated as non-GAAP net income per diluted share as accounted for under the "two-class share method."  The Company believes that non-GAAP net income and non-GAAP earnings per diluted share provide transparent and useful information and are widely used by investors, analysts, and peers in our industry as well as by management in assessing the operating performance of the Company on a consistent basis.  As it relates to future projections for the Company as well as other forward-looking information contained in this press release, the Company has not provided guidance for comparable GAAP measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP measure because it is unable to determine with reasonable certainty the ultimate outcome of certain significant items necessary to calculate such measures without unreasonable effort.  These items include, but are not limited to, certain non-recurring or non-core items the Company may record that could materially impact net income.  These items are uncertain, depend on various factors, and could have a material impact on the U.S. GAAP reported results for the guidance period.  The Company's reference to trailing twelve months adjusted EBITDA within this press release refers to the twelve month period ended March 31, 2024 adjusted EBITDA of $324.9 million, which includes (i) the three months ended March 31, 2024 adjusted EBITDA of $83.3 million, as presented in the non-GAAP reconciliations below, and (ii) the twelve months ended December 31, 2023 adjusted EBITDA of $320.4 million, as presented in the non-GAAP reconciliations included in the Company's fourth quarter and full year 2023 results press release dated February 29, 2024, less (iii) the three months ended March 31, 2023 adjusted EBITDA of $78.8 million, as presented in the non-GAAP reconciliations below.  Certain of the prior period non-GAAP financial measures presented in the following tables have been adjusted to conform with current period presentation.  The following tables reconcile the Company's non-GAAP financial measures (unaudited) to their most directly comparable GAAP (unaudited) financial measures (dollars in thousands unless otherwise noted, except per share amounts): Three Months EndedMarch 31, Non-GAAP Operating Income and Margin Reconciliations: 2024 2023 Operating income $        55,526 $        49,929 Restructuring and related charges, net 1,857 3,972 Strategic planning (credits) expenses (109) 2,087 Customer insolvency costs 1,522 — Other charges 446 305 Non-GAAP operating income $        59,242 $        56,293 Non-GAAP operating margin (%) 12.6 % 11.3 % EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAP Net Income Reconciliations: Three Months EndedMarch 31, 2024 2023 Net income attributable to Quaker Chemical Corporation $        35,227 $        29,534 Depreciation and amortization (a) 21,056