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Last updated on April 18, 2014 at 17:24 EDT

Olin Announces Third Quarter 2013 Earnings

October 28, 2013

Reports Record Level of Quarterly Adjusted EBITDA

CLAYTON, Mo., Oct. 28, 2013 /PRNewswire/ — Olin Corporation (NYSE: OLN) announced today that its third quarter 2013 net income was $69.7 million, or $0.86 per diluted share, which compares to $28.7 million, or $0.35 per diluted share in the third quarter of 2012. Sales in the third quarter of 2013 were $670.7 million compared to $581.2 million in the third quarter of 2012.

Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, “Olin had a strong third quarter of 2013 during which we increased our cash position by $142.2 million. We also generated $138.8 million of adjusted EBITDA, which is the highest quarterly level in the history of the company. The record adjusted EBITDA was driven by strong volumes and reduced costs in the Winchester business. The elevated level of commercial demand that Winchester began to experience in the fourth quarter of 2012 continued throughout the third quarter of 2013. Third quarter 2013 commercial sales increased approximately 29% compared to the third quarter of 2012, and as a result, Winchester achieved the highest level of quarterly earnings in its history. Third quarter Olin 2013 earnings included $1.6 million of pretax restructuring charges, the net recovery of $11.4 million of pretax legacy legal costs and $8.8 million of favorable tax adjustments.

“In the third quarter of 2013, Chlor Alkali segment earnings improved compared to third quarter 2012 levels due to a favorable contract settlement, which more than offset weaker shipments of chlorine and caustic soda. Early in September the business began to experience a slowdown in chlorine demand, which continued through the balance of the quarter. As a result, year-over-year third quarter 2013 chlorine and caustic soda shipments declined by 2%.

“Fourth quarter 2013 net income is forecast to be in the $0.25 to $0.30 per diluted share range, which is expected to include a pretax gain of approximately $5 million from the sale of a joint venture interest and approximately $5 million of favorable tax adjustments. Fourth quarter 2013 earnings are also forecast to include approximately $2 million of pretax restructuring charges and $4 million to $5 million of legacy environmental expense compared to $700,000 in the third quarter of 2013. Chlor Alkali volumes and netbacks are forecast to decline compared to both the fourth quarter of 2012 and the third quarter of 2013. Fourth quarter 2013 Chlor Alkali and Chemical Distribution earnings will also reflect normal seasonal weakness in bleach sales. Fourth quarter 2013 bleach sales are forecast to decline from third quarter 2013 levels approximately 25%. Winchester earnings are forecast to decline from third quarter 2013 levels due to normal seasonal weakness in hunting sensitive products but improve compared to the fourth quarter of 2012. As a result of the weaker than expected chlorine demand, we have revised our full year 2013 adjusted EBITDA forecast to the $415 million to $430 million range.”

SEGMENT REPORTING

We define segment earnings as income (loss) before interest expense, interest income, other operating (expense) income, other expense, and income taxes and include the earnings of non-consolidated affiliates in segment results consistent with management’s monitoring of the operating segments.

CHLOR ALKALI PRODUCTS

Chlor Alkali product sales for the third quarter of 2013 were $374.2 million compared to $369.6 million in the third quarter of 2012. Third quarter 2013 chlorine and caustic soda volumes decreased 2% compared to the third quarter 2012 levels. Bleach volumes increased 14% in the third quarter of 2013 compared to the third quarter of 2012, and reached the highest quarterly level in history. Third quarter 2013 shipments of hydrochloric acid and potassium hydroxide were similar to third quarter 2012 shipments. ECU netbacks increased approximately 2% in the third quarter of 2013 compared to the third quarter of 2012. Year-over-year hydrochloric acid prices declined approximately 30%. Freight costs included in the ECU netbacks in the third quarter of 2013 increased approximately 4% compared to the third quarter of 2012. Third quarter 2013 Chlor Alkali segment earnings of $64.4 million increased compared to the $59.5 million earned in the third quarter of 2012, due to an $11.0 million favorable contract settlement which more than offset higher maintenance costs associated with planned plant outages, reduced contributions from hydrochloric acid sales and higher electricity costs.

CHEMICAL DISTRIBUTION

Chemical Distribution sales in the third quarter of 2013 were $101.9 million, which reflects primarily caustic soda sales. Third quarter 2012 Chemical Distribution sales were $47.6 million which reflect sales for the 39 days of Olin ownership. Chemical Distribution earnings in the third quarter of 2013 were $3.4 million and included $3.8 million of depreciation and amortization expense.

WINCHESTER

Winchester third quarter 2013 sales were $213.1 million compared to $168.8 million in the third quarter of 2012. The increase in third quarter 2013 sales compared to the third quarter of 2012 reflects increased shipments to commercial, domestic military, and law enforcement customers. Year-over-year third quarter 2013 commercial sales increased 29% and year-over-year 2013 military and law enforcement sales increased 17%. Winchester’s third quarter 2013 segment earnings were $40.7 million compared to $16.0 million in the third quarter of 2012. The increase in segment earnings reflects the impact of significantly higher commercial, law enforcement and military sales, improved pricing, and lower manufacturing and other costs.

CORPORATE AND OTHER COSTS

Pension income included in the Corporate and Other segment for the third quarter of 2013 was $7.3 million compared to $7.2 million in the third quarter of 2012.

Third quarter charges to income for environmental investigatory and remedial activities were $0.7 million in 2013, which includes $1.3 million of pretax recoveries of costs incurred and expensed in prior periods. Third quarter 2012 charges to income for environmental investigatory and remedial activities were $3.6 million. Without these recoveries, charges to income for environmental investigatory and remedial activities would have been $2.0 million in the third quarter of 2013 compared to $3.6 million in the third quarter of 2012. These charges relate primarily to remedial and investigatory activities associated with former waste sites and past operations.

Other corporate and unallocated costs in the third quarter of 2013 decreased $8.4 million compared to the third quarter of 2012, due to the $13.9 million recovery of legacy legal costs and lower levels of deferred profit on intercompany sales, partially offset by higher legal expenses, including $2.5 million of costs directly related to the legacy legal cost recovery, higher legacy site costs, higher salary and wage and consulting costs.

CASH FLOW

The quarter end cash balance, including restricted cash, increased by $142.2 million in the third quarter of 2013. The increase reflects the level of third quarter 2013 earnings, a $48 million reduction in working capital, $35 million of proceeds from sale/leaseback transactions and $15.8 million of capital spending. The working capital decline reflects lower receivables in all three business segments and lower inventories in the Chemical Distribution and Winchester segments. The third quarter 2013 capital spending was at the lowest quarterly level since the fourth quarter of 2009.

SHARE REPURCHASE

During the third quarter of 2013, approximately 590,000 shares were repurchased at a total cost of $14.1 million. Total shares outstanding were reduced during the quarter by approximately 445,000 shares. As of September 30, 2013, there were approximately 3.4 million shares available to be repurchased under the 5 million, three-year share repurchase program authorized by the Board of Directors on July 21, 2011.

DIVIDEND

On October 24, 2013, Olin’s Board of Directors declared a dividend of $0.20 on each share of Olin common stock. The dividend is payable on December 10, 2013 to shareholders of record at the close of business on November 12, 2013. This is the 348th consecutive quarterly dividend to be paid by the Company.

CONFERENCE CALL INFORMATION

The Company’s third quarter earnings conference call with securities analysts is scheduled for 10:00 A.M. Eastern Time, Tuesday, October 29th. The call will feature remarks by Joseph D. Rupp, Olin’s Chairman, President and Chief Executive Officer; John E. Fischer, Olin’s Senior Vice President and Chief Financial Officer; John L. McIntosh, Olin’s Senior Vice President, Operations; and Larry P. Kromidas, Olin’s Assistant Treasurer and Director, Investor Relations. Anyone wishing to listen to the call may do so via the Internet by following the instructions posted under the Conference Call icon on Olin’s website, www.olin.com. Listeners should log on to the website 15 minutes prior to the call. The call will also be audio archived on the Olin website for future replay beginning at 12:00 P.M. Eastern Time. A final transcript of the conference call will be available on the website in the Investor section the following day.

COMPANY DESCRIPTION

Olin Corporation is a manufacturer concentrated in three business segments: Chlor Alkali Products, Chemical Distribution and Winchester. Chlor Alkali Products, with nine U. S. manufacturing facilities and one Canadian manufacturing facility, produces chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. Winchester, with its principal manufacturing facilities in East Alton, IL and Oxford, MS, produces and distributes sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

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FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management’s beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.

We have used the words “anticipate,” “intend,” “may,” “expect,” “believe,” “should,” “plan,” “project,” “estimate,” “forecast,” “optimistic,” and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Relative to the dividend, the payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors. In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2012, include, but are not limited to, the following:

    --  sensitivity to economic, business and market conditions in the United
        States and overseas, including economic instability or a downturn in the
        sectors served by us, such as ammunition, vinyls, urethanes, and pulp
        and paper, and the migration by United States customers to low-cost
        foreign locations;
    --  the cyclical nature of our operating results, particularly declines in
        average selling prices in the chlor alkali industry and the
        supply/demand balance for our products, including the impact of excess
        industry capacity or an imbalance in demand for our chlor alkali
        products;
    --  economic and industry downturns that result in diminished product demand
        and excess manufacturing capacity in any of our segments and that, in
        many cases, result in lower selling prices and profits;
    --  new regulations or public policy changes regarding the transportation of
        hazardous chemicals and the security of chemical manufacturing
        facilities;
    --  changes in legislation or government regulations or policies;
    --  higher-than-expected raw material and energy, transportation, and/or
        logistics costs;
    --  costs and other expenditures in excess of those projected for
        environmental investigation and remediation or other legal proceedings;
    --  unexpected litigation outcomes;
    --  the failure or an interruption of our information technology systems;
    --  the occurrence of unexpected manufacturing interruptions and outages,
        including those occurring as a result of labor disruptions and
        production hazards;
    --  adverse conditions in the credit and capital markets, limiting or
        preventing our ability to borrow or raise capital;
    --  weak industry conditions could affect our ability to comply with the
        financial maintenance covenants in our senior revolving credit facility
        and certain tax-exempt bonds;
    --  the effects of any declines in global equity markets on asset values and
        any declines in interest rates used to value the liabilities in our
        pension plan; and
    --  an increase in our indebtedness or higher-than-expected interest rates,
        affecting our ability to generate sufficient cash flow for debt service.

All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.

2013-13



    Olin Corporation

    Consolidated Statements of Income (a)
    ------------------------------------

                                                                                                                               Three Months                     Nine Months

                                                                                                                            Ended September 30,             Ended September 30,

    (In millions, except per share amounts)                                                                                    2013        2012              2013        2012
    --------------------------------------                                                                                     ----        ----              ----        ----

    Sales                                                                                                            $670.7  $581.2             $1,952.9 $1,597.1

    Operating Expenses:

                                           Cost of Goods Sold                                                                 528.5       475.8           1,564.0     1,260.1

                                           Selling and Administration                                                          36.5        42.4             134.3       131.2

                                           Restructuring Charges (b)                                                            1.6         2.3               4.1         6.0

                                           Acquisition Costs (c)                                                                  -         8.3                 -         8.3

    Other Operating (Expense) Income (d)                                                                                       (0.4)        1.1               1.3         1.5
    -----------------------------------                                                                                        ----         ---               ---         ---

                                           Operating Income                                                                   103.7        53.5             251.8       193.0

    Earnings of Non-consolidated Affiliates                                                                                     1.0         1.2               2.4         2.0

    Interest Expense (e)                                                                                                        9.9         6.0              28.7        18.3

    Interest Income                                                                                                             0.1         0.2               0.3         0.7

    Other Expense (f)                                                                                                           1.9         2.2               6.3         6.9
    ----------------                                                                                                            ---         ---               ---         ---

                                           Income before Taxes                                                                 93.0        46.7             219.5       170.5

    Income Tax Provision                                                                                                       23.3        18.0              65.6        55.5
    --------------------                                                                                                       ----        ----              ----        ----

    Net Income                                                                                                        $69.7   $28.7               $153.9   $115.0
    ----------                                                                                                        -----   -----               ------   ------

    Net Income Per Common Share:

                                           Basic                                                                              $0.87       $0.36             $1.92       $1.44

                                           Diluted                                                                            $0.86       $0.35             $1.90       $1.42
                                           -------                                                                            -----       -----             -----       -----

    Dividends Per Common Share                                                                                        $0.20   $0.20                $0.60    $0.60
    --------------------------                                                                                        -----   -----                -----    -----

    Average Common Shares Outstanding - Basic                                                                                  79.8        80.1              80.1        80.1
    -----------------------------------------

    Average Common Shares Outstanding - Diluted                                                                                80.8        81.0              81.1        80.9
    -------------------------------------------                                                                                ----        ----              ----        ----

    (a)                                    Unaudited.

    (b)                                     Restructuring charges for the three and nine months ended September 30,
                                            2013 and 2012 were associated with exiting the use of mercury cell
                                            technology in the chlor alkali manufacturing process and our ongoing
                                            relocation of our Winchester centerfire ammunition manufacturing
                                            operations from East Alton, IL to Oxford, MS.

    (c)                                     Acquisition costs for the three and nine months ended September 30, 2012
                                            were related to the acquisition of KA Steel.

    (d)                                     Other operating (expense) income for the nine months ended September 30,
                                            2013 included a gain of $1.5 million on the sale of two former
                                            manufacturing sites.

    (e)                                     Interest expense was reduced by capitalized interest of zero and $2.5
                                            million for the three months ended September 30, 2013 and 2012,
                                            respectively, and $1.0 million and $5.3 million for the nine months
                                            ended September 30, 2013 and 2012, respectively.

    (f)                                     Other expense for the three months ended September 30, 2013 and 2012
                                            included $1.9 million and $2.3 million, respectively, of expense for our
                                            earn out liability from the SunBelt acquisition, and $6.4 million and
                                            $7.1 million for the nine months ended September 30, 2013 and 2012,
                                            respectively.


    Olin Corporation

    Segment Information (a)

                                                                                                                Three Months            Nine Months

                                                                                                            Ended September 30,     Ended September 30,

    (In millions)                                                                                                             2013                    2012      2013      2012
    ------------                                                                                                              ----                    ----      ----      ----

    Sales:

                            Chlor Alkali Products                                                                           $374.2                  $369.6  $1,090.1  $1,092.5

                            Chemical Distribution                                                                            101.9                    47.6     325.7      47.6

                            Winchester                                                                                       213.1                   168.8     599.2     461.8

                            Intersegment Sales Elimination (b)                                                               (18.5)                   (4.8)    (62.1)     (4.8)
                            ---------------------------------                                                                -----                    ----     -----      ----

                            Total Sales                                                                                     $670.7                  $581.2  $1,952.9  $1,597.1
                            -----------                                                                                     ------                  ------  --------  --------

    Income before Taxes:

                            Chlor Alkali Products (c)                                                                        $64.4                   $59.5    $173.1    $208.9

                            Chemical Distribution                                                                              3.4                     1.9       9.7       1.9

                            Winchester                                                                                        40.7                    16.0     109.1      38.7

                            Corporate/Other:

                                 Pension Income (d)                                                                            7.3                     7.2      20.0      20.5

                                 Environmental Expense (e)                                                                    (0.7)                   (3.6)     (4.9)     (6.7)

                                 Other Corporate and Unallocated Costs                                                        (8.4)                  (16.8)    (50.0)    (55.5)

                                 Restructuring Charges (f)                                                                    (1.6)                   (2.3)     (4.1)     (6.0)

                                 Acquisition Costs (g)                                                                           -                    (8.3)        -      (8.3)

                            Other Operating (Expense) Income (h)                                                              (0.4)                    1.1       1.3       1.5

                            Interest Expense (i)                                                                              (9.9)                   (6.0)    (28.7)    (18.3)

                            Interest Income                                                                                    0.1                     0.2       0.3       0.7

                            Other Expense (j)                                                                                 (1.9)                   (2.2)     (6.3)     (6.9)

                            Income before Taxes                                                                              $93.0                   $46.7    $219.5    $170.5
                            -------------------                                                                              -----                   -----    ------    ------

    (a)                     Unaudited.

    (b)                      Intersegment sales elimination represents the sale of caustic soda, bleach,
                             potassium hydroxide, and hydrochloric acid between Chemical Distribution and
                             Chlor Alkali Products, at prices that approximate market.

    (c)                      Earnings of non-consolidated affiliates are included in the Chlor Alkali
                             Products segment results consistent with management's monitoring of the
                             operating segments.  The earnings from non-consolidated affiliates were $1.0
                             million and $1.2 million for the three months ended September 30, 2013 and
                             2012, respectively, and $2.4 million and $2.0 million for the nine months
                             ended September 30, 2013 and 2012, respectively.

    (d)                      The service cost and the amortization of prior service cost components of
                             pension expense related to the employees of the operating segments are
                             allocated to the operating segments based on their respective estimated census
                             data.  All other components of pension costs are included in Corporate/Other
                             and include items such as the expected return on plan assets, interest cost
                             and recognized actuarial gains and losses.

    (e)                      Environmental expense for the three months ended September 30, 2013 and 2012
                             included $1.3 million and zero, respectively, of recoveries from third parties
                             for costs incurred and expensed in prior periods.  Environmental expense for
                             the nine months ended September 30, 2013 and 2012 included $1.3 million and
                             $0.1 million, respectively, of recoveries from third parties for costs
                             incurred and expensed in prior periods.

    (f)                      Restructuring charges for the three and nine months ended September 30, 2013
                             and 2012 were associated with exiting the use of mercury cell technology in
                             the chlor alkali manufacturing process and our ongoing relocation of our
                             Winchester centerfire ammunition manufacturing operations from East Alton, IL
                             to Oxford, MS.

    (g)                      Acquisition costs for the three and nine months ended September 30, 2012 were
                             related to the acquisition of KA Steel.

    (h)                      Other operating (expense) income for the nine months ended September 30, 2013
                             included a gain of $1.5 million on the sale of two former manufacturing sites.

    (i)                      Interest expense was reduced by capitalized interest of zero and $2.5 million
                             for the three months ended September 30, 2013 and 2012, respectively, and $1.0
                             million and $5.3 million for the nine months ended September 30, 2013 and
                             2012, respectively.

    (j)                      Other expense for the three months ended September 30, 2013 and 2012 included
                             $1.9 million and $2.3 million, respectively, of expense for our earn out
                             liability from the SunBelt acquisition, and $6.4 million and $7.1 million for
                             the nine months ended September 30, 2013 and 2012, respectively.


    Olin Corporation

    Consolidated Balance
     Sheets (a)

                                September 30,           December 31,           September 30,

    (In millions, except
     per share data)                              2013                   2012                    2012
    --------------------                          ----                   ----                    ----

    Assets:

      Cash & Cash
       Equivalents                              $283.8                 $165.2                  $103.1

      Accounts Receivable,
       Net                                       343.8                  299.0                   350.8

      Income Taxes
       Receivable                                  4.0                    8.2                    12.4

      Inventories                                183.5                  195.1                   214.3

      Current Deferred
       Income Taxes                               51.7                   61.3                    56.5

      Other Current Assets                        10.3                   20.3                    20.2
      --------------------                        ----                   ----                    ----

        Total Current Assets                     877.1                  749.1                   757.3

      Property, Plant and
       Equipment

         (Less Accumulated
          Depreciation of
          $1,236.8, $1,164.0
          and $1,206.0)                          991.7                1,034.3                 1,019.4

      Prepaid Pension Costs                        2.1                    2.1                    51.1

      Restricted Cash                              6.6                   11.9                    18.5

      Deferred Income Taxes                        8.4                    9.1                       -

      Other Assets                               210.0                  224.1                   223.4

      Goodwill                                   747.1                  747.1                   747.1
      --------                                   -----                  -----                   -----

    Total Assets                              $2,843.0               $2,777.7                $2,816.8
    ------------                              --------               --------                --------

    Liabilities and
     Shareholders'
     Equity:

      Current Installments
       of Long-Term Debt                         $12.5                  $23.6                   $23.6

      Accounts Payable                           170.4                  174.3                   189.5

      Income Taxes Payable                         0.8                    7.6                       -

      Accrued Liabilities                        242.4                  228.5                   250.1
      -------------------                        -----                  -----                   -----

        Total Current
         Liabilities                             426.1                  434.0                   463.2

      Long-Term Debt                             690.5                  690.1                   703.1

      Accrued Pension
       Liability                                 123.2                  164.3                    66.8

      Deferred Income Taxes                      134.3                  110.4                   151.6

      Other Liabilities                          371.6                  380.5                   355.5
      -----------------                          -----                  -----                   -----

    Total Liabilities                          1,745.7                1,779.3                 1,740.2
    -----------------                          -------                -------                 -------

    Commitments and
     Contingencies

    Shareholders' Equity:

          Common Stock, Par
           Value $1 Per Share,
           Authorized 120.0
           Shares:

              Issued and
               Outstanding 79.6
               Shares (80.2 and
               80.2 in 2012)                      79.6                   80.2                    80.2

          Additional Paid-In
           Capital                               841.6                  856.1                   854.1

          Accumulated Other
           Comprehensive Loss                   (363.1)                (371.3)                 (272.6)

          Retained Earnings                      539.2                  433.4                   414.9

    Total Shareholders'
     Equity                                    1,097.3                  998.4                 1,076.6
    -------------------                        -------                  -----                 -------

    Total Liabilities and
     Shareholders' Equity                     $2,843.0               $2,777.7                $2,816.8
    ---------------------                     --------               --------                --------

    (a) Unaudited.


    Olin Corporation

    Consolidated Statements of Cash Flows (a)

                                                    Nine Months

                                                       Ended
                                                     September
                                                        30,

    (In millions)                                           2013    2012
    ------------                                            ----    ----

    Operating Activities:

    Net Income                                            $153.9  $115.0

    Earnings of Non-consolidated Affiliates                 (2.4)   (2.0)

    Gains on Disposition of Property, Plant and
     Equipment                                              (1.1)   (0.9)

    Stock-Based Compensation                                 6.4     4.2

    Depreciation and Amortization                          101.2    78.7

    Deferred Income Taxes                                   27.9    34.5

    Qualified Pension Plan Contributions                    (0.7)   (0.6)

    Qualified Pension Plan Income                          (18.1)  (18.6)

    Changes in:

           Receivables                                     (44.8)  (50.5)

           Income Taxes Receivable/Payable                  (2.6)  (11.7)

           Inventories                                      11.6    (1.3)

           Other Current Assets                              2.4     0.7

           Accounts Payable and Accrued Liabilities         16.1    15.0

           Other Assets                                      2.5     4.7

           Other Noncurrent Liabilities                    (10.6)  (10.0)

    Other Operating Activities                                 -    (0.5)
    --------------------------                               ---    ----

           Net Operating Activities                        241.7   156.7
           ------------------------                        -----   -----

    Investing Activities:

    Capital Expenditures                                   (70.4) (210.8)

    Business Acquired in Purchase Transaction, Net
     of Cash Acquired                                          -  (310.4)

    Proceeds from Sale/Leaseback of Equipment               35.8     3.5

    Proceeds from Disposition of Property, Plant
     and Equipment                                           4.3     3.7

    Distributions from Affiliated Companies, Net             0.9     0.5

    Restricted Cash Activity                                 5.3    33.2

    Other Investing Activities                              (1.8)   (0.4)
    --------------------------                              ----    ----

           Net Investing Activities                        (25.9) (480.7)
           ------------------------                        -----  ------

    Financing Activities:

    Long-Term Debt:

    Borrowings                                                 -   200.0

    Repayments                                             (11.4)   (7.7)

    Earn Out Payment - SunBelt                             (17.1)  (15.3)

    Common Stock Repurchased and Retired                   (28.8)   (3.1)

    Stock Options Exercised                                  6.8     1.3

    Excess Tax Benefits from Stock-Based
     Compensation                                            1.4     0.7

    Dividends Paid                                         (48.1)  (48.0)

    Deferred Debt Issuance Costs                               -    (5.6)

           Net Financing Activities                        (97.2)  122.3
           ------------------------                        -----   -----

    Net Increase (Decrease) in Cash and Cash
     Equivalents                                           118.6  (201.7)

    Cash and Cash Equivalents, Beginning of Year           165.2   304.8
    --------------------------------------------           -----   -----

    Cash and Cash Equivalents, End of Period              $283.8  $103.1
    ----------------------------------------              ------  ------

    (a) Unaudited.


    Olin Corporation

    Non-GAAP Financial Measures (a)

    Olin's definition of Adjusted EBITDA (Earnings before interest, taxes,
     depreciation, and amortization) is net income plus an add-back for
     depreciation and amortization, interest expense (income), income tax
     expense, and other expense. Adjusted EBITDA is a non-GAAP financial
     measure. Management believes that this measure is meaningful to investors
     as a supplemental financial measure to assess the financial performance of
     our assets without regard to financing methods, capital structures, taxes,
     or historical cost basis. The use of non-GAAP financial measures is not
     intended to replace any measures of performance determined in accordance
     with GAAP and Adjusted EBITDA presented may not be comparable to similarly
     titled measures of other companies.

                                                    Three                       Nine
                                                   Months                      Months

                                                    Ended                      Ended
                                                  September                  September
                                                     30,                        30,

    (In millions)                                       2013          2012               2013    2012
    ------------                                        ----          ----               ----    ----

    Reconciliation of Net Income to
     Adjusted EBITDA:

    Net Income                                         $69.7         $28.7             $153.9  $115.0

             Add Back:

             Interest Expense                            9.9           6.0               28.7    18.3

             Interest Income                            (0.1)         (0.2)              (0.3)   (0.7)

             Income Tax Expense                         23.3          18.0               65.6    55.5

             Depreciation and Amortization              34.1          26.6              101.2    78.7
             -----------------------------              ----          ----              -----    ----

    EBITDA                                             136.9          79.1              349.1   266.8

             Add Back:

             Other Expense (b)                           1.9           2.2                6.3     6.9
             ----------------                            ---           ---                ---     ---

    Adjusted EBITDA                                   $138.8         $81.3             $355.4  $273.7
    ---------------                                   ------         -----             ------  ------

    (a)      Unaudited.

    (b)       Other expense for the three
              months ended September 30, 2013
              and 2012 included $1.9 million
              and $2.3 million, respectively,
              of expense for our earn out
              liability from the SunBelt
              acquisition, and $6.4 million
              and $7.1 million for the nine
              months ended September 30, 2013
              and 2012, respectively.

SOURCE Olin Corporation


Source: PR Newswire