A. Schulman Reports Fiscal 2016 Third Quarter Results
Consolidated net sales for the fiscal 2016 third quarter were
"We are encouraged by the continued improvement in our adjusted margins which validates our strategy to provide superior value to a vast array of market leading customers," said
Bernard Rzepka, President and Chief Executive Officer. "Much of this profit improvement was a result of our Smart Sales, Savings and Safety initiative that is entrenched within our businesses and is positioning us as the preferred premier materials solutions provider."
Net sales for
"While we are in no way satisfied with the results in these regions, our teams have done a good job controlling what they could control as evidenced by the USCAN adjusted gross margin improvement," said Rzepka. "With the claims and operational issues at Lucent largely identified and addressed, we can now focus on realizing our full growth potential. As we enter our fiscal fourth quarter, our priorities will be to further deepen our engagement with existing customers, increase our share in attractive target markets, and continue to invest smartly in R&D while aggressively managing our costs through productivity initiatives and supply chain efficiencies."
LATAM net sales for the quarter were \\$43.4 million, compared with
"This marks our fourth consecutive quarter of double-digit growth in this region," Rzepka said. "We saw strength in the agricultural market in the LATAM region. Our business also increased in packaging and we experienced improved product mix in our Engineered Plastics business related to the strong automotive markets. Lastly, our export business in
Asia Pacific ("APAC") net sales were \\$46.9 million, compared with
Engineered Composites ("EC") net sales for the quarter were \\$54.5 million, compared with
Lucent Update
As previously reported, the Company identified quality reporting issues affecting certain product lines at two former Citadel manufacturing facilities that were once part of Lucent Polymers, which was acquired as part of the Citadel acquisition. Specifically, the Company discovered discrepancies between laboratory data and certifications provided by Lucent to customers with respect to certain products using recycled or reclaimed raw materials.
"The fact that we were able to identify and address this matter as quickly as we did without the need for any product recalls speaks volumes to the strength of our team and culture. As a result of the tireless efforts and excellent work of our team, we are now focusing our attention toward organic growth instead of resolving issues of the past," said Rzepka. "We thank our customers for their patience and support as we addressed this critical matter."
The Company incurred costs of
In accordance with the Company's policy, it will make no further comments on this ongoing legal matter, nor will it speculate to the timing or potential outcome of this matter.
Working Capital/Cash Flow
Cash provided from operations was \\$95.7 million in the nine months ended May 31, 2016, an improvement compared to
During the quarter, the Company reduced its debt position by approximately
Capital expenditures for the nine months ended May 31, 2016 were \\$34.6 million, compared with \\$32.7 million last year. During the three months ended May 31, 2016, the Company declared and paid quarterly cash dividends of \\$6.1 million, or \\$0.205 per quarter per common share in accordance to its ongoing goal to provide an attractive yield to shareholders. In addition, a quarterly cash dividend of
Business Update and Outlook
"Despite the continued volatility in the global marketplace, our outlook for the full year remains unchanged," said Rzepka. "We continue to anticipate full-year fiscal 2016 adjusted earnings to be in the range of \\$2.40 to \\$2.45 per diluted share."
Rzepka noted that the Company is positioning itself for accelerating earnings growth in fiscal 2017 and beyond. "We have organic growth programs as well as cost and productivity initiatives underway, and with the distraction of addressing the Lucent matter largely behind us, we fully expect that these focused efforts will continue to improve our operating margins. We are actively pursuing different avenues to further advance our strategy and drive value through additional investments in profitable growth."
As is customary, the Company will provide fiscal 2017 earnings and other financial metrics guidance at the end of October when it releases results for the full year.
Conference Call on the Web
A live
Investor Presentation Materials
Senior executives of the Company may participate in meetings with analysts and investors throughout the fiscal year. The Company has posted presentation materials, portions of which may be used during such meetings, in the Investors section of its website at www.aschulman.com. The presentation will remain on the website as long as it is in use.
About A.
Use of Non-GAAP Financial Measures
This release includes certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures include segment gross profit, SG&A expenses excluding certain items, segment operating income, operating income before certain items, net income excluding certain items, net income per diluted share excluding certain items and adjusted EBITDA, as discussed further in the Reconciliation of GAAP and Non-GAAP Financial Measures below. These non-GAAP financial measures are considered relevant to aid analysis and understanding of the Company's results and business trends. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures, and tables included in this release reconcile each non-GAAP
financial measure with the most directly comparable GAAP financial measure. The most directly comparable GAAP financial measures for these purposes are gross profit, SG&A expenses, operating income, net income and net income per diluted share. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
While the Company believes that these non-GAAP financial measures provide useful supplemental information to investors, there are very significant limitations associated with their use. These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
Cautionary Statements
A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments and constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and relate to future events and expectations. Forward-looking statements contain such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which management
is unable to predict or control, that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include, but are not limited to, the following:
- worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Company's major product markets or countries where the Company has operations;
- the effectiveness of the Company's efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques;
- competitive factors, including intense price competition;
- fluctuations in the value of currencies in areas where the Company operates;
- volatility of prices and availability of the supply of energy and raw materials that are critical to the manufacture of the Company's products, particularly plastic resins derived from oil and natural gas;
- changes in customer demand and requirements;
- effectiveness of the Company to achieve the level of cost savings, productivity improvements, growth and other benefits anticipated from acquisitions, joint ventures and restructuring initiatives;
- escalation in the cost of providing employee health care;
- uncertainties and unanticipated developments regarding contingencies, such as pending and future litigation and other claims, including developments that would require increases in our costs and/or reserves for such contingencies;
- the performance of the global automotive market as well as other markets served;
- further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products;
- operating problems with our information systems as a result of system security failures such as viruses, cyber-attacks or other causes;
- our current debt position could adversely affect our financial health and prevent us from fulfilling our financial obligations;
- integration of acquisitions, including most recently Citadel, with our existing business, including the risk that the integration will be more costly or more time consuming and complex or simply less effective than anticipated;
- our ability to achieve the anticipated synergies, cost savings and other benefits from the Citadel acquisition;
- substantial time devoted by management to the integration of the Citadel acquisition; and
- failure of counterparties to perform under the terms and conditions of contractual arrangements, including suppliers, customers, buyers and sellers of a business and other third parties with which the Company contracts.
The risks and uncertainties identified above are not the only risks the Company faces. Additional risk factors that could affect the Company's performance are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Company's business, financial condition and results of operations.
SHLM_ALL
| |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended |
Nine months ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net sales |
\\$ |
650,439 |
\\$ |
560,858 |
\\$ |
1,891,419 |
\\$ |
1,718,206 |
|||||||
Cost of sales |
540,965 |
470,101 |
1,587,192 |
1,462,531 |
|||||||||||
Selling, general and administrative expenses |
73,641 |
64,842 |
222,482 |
195,482 |
|||||||||||
Restructuring expense |
4,245 |
2,649 |
8,005 |
10,530 |
|||||||||||
Operating income |
31,588 |
23,266 |
73,740 |
49,663 |
|||||||||||
Interest expense |
13,557 |
2,618 |
40,965 |
7,288 |
|||||||||||
Bridge financing fees |
— |
18,750 |
— |
18,750 |
|||||||||||
Foreign currency transaction (gains) losses |
392 |
857 |
2,071 |
3,097 |
|||||||||||
Other (income) expense, net |
(229) |
(335) |
(246) |
(900) |
|||||||||||
Gain on early extinguishment of debt |
— |
— |
— |
(1,290) |
|||||||||||
Income (loss) from continuing operations before taxes |
17,868 |
1,376 |
30,950 |
22,718 |
|||||||||||
Provision (benefit) for |
312 |
10,344 |
4,076 |
18,801 |
|||||||||||
Income (loss) from continuing operations |
17,556 |
(8,968) |
26,874 |
3,917 |
|||||||||||
Income (loss) from discontinued operations, net of tax |
82 |
(18) |
283 |
(86) |
|||||||||||
Net income (loss) |
17,638 |
(8,986) |
27,157 |
3,831 |
|||||||||||
Noncontrolling interests |
(241) |
(343) |
(1,075) |
(890) |
|||||||||||
Net income (loss) attributable to |
17,397 |
(9,329) |
26,082 |
2,941 |
|||||||||||
Convertible special stock dividends |
1,875 |
563 |
5,625 |
563 |
|||||||||||
Net income (loss) available to |
\\$ |
15,522 |
\\$ |
(9,892) |
\\$ |
20,457 |
\\$ |
2,378 |
|||||||
Weighted-average number of shares outstanding: |
|||||||||||||||
Basic |
29,339 |
29,219 |
29,284 |
29,125 |
|||||||||||
Diluted |
29,474 |
29,219 |
29,459 |
29,547 |
|||||||||||
Basic earnings per share available to |
|||||||||||||||
Income (loss) from continuing operations |
\\$ |
0.53 |
\\$ |
(0.34) |
\\$ |
0.69 |
\\$ |
0.08 |
|||||||
Income (loss) from discontinued operations |
— |
— |
0.01 |
— |
|||||||||||
Net income (loss) available to |
\\$ |
0.53 |
\\$ |
(0.34) |
\\$ |
0.70 |
\\$ |
0.08 |
|||||||
Diluted earnings per share available to |
|||||||||||||||
Income (loss) from continuing operations |
\\$ |
0.53 |
\\$ |
(0.34) |
\\$ |
0.68 |
\\$ |
0.08 |
|||||||
Income (loss) from discontinued operations |
— |
— |
0.01 |
— |
|||||||||||
Net income (loss) available to |
\\$ |
0.53 |
\\$ |
(0.34) |
\\$ |
0.69 |
\\$ |
0.08 |
|||||||
Cash dividends per common share |
\\$ |
0.205 |
\\$ |
0.205 |
\\$ |
0.615 |
\\$ |
0.615 |
|||||||
Cash dividends per share of convertible special stock |
\\$ |
15.00 |
\\$ |
— |
\\$ |
45.00 |
\\$ |
— |
| |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
|
| ||||||
(In thousands) | |||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
\\$ |
47,019 |
\\$ |
96,872 |
|||
Restricted Cash |
2,407 |
— |
|||||
Accounts receivable, less allowance for doubtful accounts of |
405,118 |
413,943 |
|||||
Inventories |
289,656 |
317,328 |
|||||
Prepaid expenses and other current assets |
72,767 |
60,205 |
|||||
Total current assets |
816,967 |
888,348 |
|||||
Property, plant and equipment, at cost: |
|||||||
Land and improvements |
33,160 |
31,674 |
|||||
Buildings and leasehold improvements |
177,748 |
164,759 |
|||||
Machinery and equipment |
440,631 |
427,183 |
|||||
Furniture and fixtures |
34,537 |
34,393 |
|||||
Construction in progress |
24,032 |
23,866 |
|||||
Gross property, plant and equipment |
710,108 |
681,875 |
|||||
Accumulated depreciation |
394,605 |
367,381 |
|||||
Net property, plant and equipment |
315,503 |
314,494 |
|||||
Deferred charges and other noncurrent assets |
89,652 |
90,749 |
|||||
|
620,649 |
623,583 |
|||||
Intangible assets, net |
405,539 |
434,537 |
|||||
Total assets |
\\$ |
2,248,310 |
\\$ |
2,351,711 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
\\$ |
296,308 |
\\$ |
305,385 |
|||
|
— |
4,205 |
|||||
Accrued payroll, taxes and related benefits |
47,017 |
56,192 |
|||||
Other accrued liabilities |
81,636 |
70,824 |
|||||
Short-term debt |
24,515 |
20,710 |
|||||
Total current liabilities |
449,476 |
457,316 |
|||||
Long-term debt |
961,569 |
1,045,349 |
|||||
Pension plans |
118,034 |
117,889 |
|||||
Deferred income taxes |
109,428 |
115,537 |
|||||
Other long-term liabilities |
22,525 |
22,885 |
|||||
Total liabilities |
1,661,032 |
1,758,976 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity: |
|||||||
Convertible special stock, no par value |
120,289 |
120,289 |
|||||
Common stock, |
48,506 |
48,369 |
|||||
Additional paid-in capital |
275,361 |
274,319 |
|||||
Accumulated other comprehensive income (loss) |
(93,144) |
(83,460) |
|||||
Retained earnings |
610,135 |
607,690 |
|||||
|
(382,999) |
(383,121) |
|||||
|
578,148 |
584,086 |
|||||
Noncontrolling interests |
9,130 |
8,649 |
|||||
Total equity |
587,278 |
592,735 |
|||||
Total liabilities and equity |
\\$ |
2,248,310 |
\\$ |
2,351,711 |
| |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Nine months ended | |||||||
2016 |
2015 | ||||||
(In thousands) | |||||||
Operating from continuing and discontinued operations: |
|||||||
Net income |
\\$ |
27,157 |
\\$ |
3,831 |
|||
Adjustments to reconcile net income to net cash provided from (used in) operating activities: |
|||||||
Depreciation |
37,347 |
26,481 |
|||||
Amortization |
30,163 |
11,899 |
|||||
Bridge financing fees |
— |
18,750 |
|||||
Deferred tax provision (benefit) |
(2,395) |
(1,143) |
|||||
Pension, postretirement benefits and other compensation |
3,161 |
8,318 |
|||||
Restricted stock compensation - CEO transition costs, net of cash |
— |
4,789 |
|||||
Changes in assets and liabilities, net of acquisitions: |
|||||||
Accounts receivable |
2,574 |
(13,610) |
|||||
Inventories |
19,900 |
(13,309) |
|||||
Accounts payable |
(8,145) |
9,599 |
|||||
Income taxes |
(9,955) |
2,598 |
|||||
Accrued payroll and other accrued liabilities |
2,583 |
4,776 |
|||||
Other assets and long-term liabilities |
(6,718) |
(6,698) |
|||||
Net cash provided from (used in) operating activities |
95,672 |
56,281 |
|||||
Investing from continuing and discontinued operations: |
|||||||
Expenditures for property, plant and equipment |
(34,618) |
(32,662) |
|||||
Investment in equity investees |
— |
(12,456) |
|||||
Proceeds from the sale of assets |
1,184 |
1,411 |
|||||
Restricted cash |
(2,407) |
(3,509) |
|||||
Business acquisitions, net of cash |
— |
(6,698) |
|||||
Net cash provided from (used in) investing activities |
(35,841) |
(53,914) |
|||||
Financing from continuing and discontinued operations: |
|||||||
Cash dividends paid to special stockholders |
(5,625) |
— |
|||||
Cash dividends paid to common stockholders |
(18,012) |
(18,058) |
|||||
Increase (decrease) in short-term debt |
2,780 |
(12,995) |
|||||
Borrowings on long-term debt |
124,671 |
255,196 |
|||||
Repayments on long-term debt including current portion |
(210,448) |
(353,647) |
|||||
Noncontrolling interests' contributions (distributions) |
— |
(1,750) |
|||||
Issuances of convertible special stock, net |
— |
120,296 |
|||||
Issuances of stock, common and treasury |
213 |
231 |
|||||
Redemptions of common stock |
(1,077) |
(4,999) |
|||||
Purchases of treasury stock |
— |
(3,335) |
|||||
Net cash provided from (used in) financing activities |
(107,498) |
(19,061) |
|||||
Effect of exchange rate changes on cash |
(2,186) |
(11,756) |
|||||
Net increase (decrease) in cash and cash equivalents |
(49,853) |
(28,450) |
|||||
Cash and cash equivalents at beginning of period |
96,872 |
135,493 |
|||||
Cash and cash equivalents at end of period |
\\$ |
47,019 |
\\$ |
107,043 |
|||
Non-cash Activity: |
|||||||
Senior Notes funding held in restricted cash |
\\$ |
— |
\\$ |
375,000 |
|||
Unpaid debt issuance costs |
\\$ |
— |
\\$ |
11,116 |
| ||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||||||
Three months ended |
Cost of Sales |
Gross Margin |
SG&A |
Restructuring Expense |
Operating Income |
Operating Income per Pound |
Non Operating (Income) Expense |
Income Tax Expense (Benefit) |
Net Income Available to ASI Common Stockholders |
Diluted EPS | ||||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | ||||||||||||||||||||||||||||||||||||||||
As reported |
\\$ |
540,965 |
16.8 |
% |
\\$ |
73,641 |
\\$ |
4,245 |
\\$ |
31,588 |
\\$ |
0.048 |
\\$ |
13,720 |
\\$ |
312 |
\\$ |
15,522 |
\\$ |
0.53 |
||||||||||||||||||||
Convertible special stock dividends (9) |
1,875 |
0.03 |
||||||||||||||||||||||||||||||||||||||
Certain items: |
||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation (1) |
(1,283) |
(3) |
— |
1,286 |
— |
243 |
1,043 |
0.03 |
||||||||||||||||||||||||||||||||
Costs related to acquisitions and integrations (2) |
(423) |
(1,020) |
— |
1,443 |
— |
235 |
1,208 |
0.04 |
||||||||||||||||||||||||||||||||
Restructuring and related costs (3) |
(1,647) |
(3,628) |
(4,245) |
9,520 |
(209) |
2,099 |
7,630 |
0.23 |
||||||||||||||||||||||||||||||||
Lucent costs (4) |
(466) |
(1,485) |
— |
1,951 |
— |
385 |
1,566 |
0.05 |
||||||||||||||||||||||||||||||||
Accelerated amortization of deferred financing fees (5) |
— |
— |
— |
— |
(163) |
34 |
129 |
— |
||||||||||||||||||||||||||||||||
Tax (benefits) charges (6) |
— |
— |
— |
— |
— |
3,664 |
(3,664) |
(0.12) |
||||||||||||||||||||||||||||||||
Loss (income) from discontinued operations |
— |
— |
— |
— |
— |
— |
(82) |
— |
||||||||||||||||||||||||||||||||
Total certain items |
(3,819) |
0.6 |
% |
(6,136) |
(4,245) |
14,200 |
0.022 |
(372) |
6,660 |
7,830 |
0.26 |
|||||||||||||||||||||||||||||
As Adjusted |
\\$ |
537,146 |
17.4 |
% |
\\$ |
67,505 |
\\$ |
— |
\\$ |
45,788 |
\\$ |
0.070 |
\\$ |
13,348 |
\\$ |
6,972 |
\\$ |
25,227 |
\\$ |
0.79 |
||||||||||||||||||||
Percentage of Revenue |
10.4 |
% |
7.0 |
% |
3.9 |
% |
||||||||||||||||||||||||||||||||||
Effective Tax Rate |
21.5 |
% |
||||||||||||||||||||||||||||||||||||||
Three months ended |
Cost of Sales |
Gross Margin |
SG&A |
Restructuring Expense |
Operating Income |
Operating Income per Pound |
Non Operating (Income) Expense |
Income Tax Expense (Benefit) |
Net Income Available to ASI Common Stockholders |
Diluted EPS | ||||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | ||||||||||||||||||||||||||||||||||||||||
As reported |
\\$ |
470,101 |
16.2 |
% |
\\$ |
64,842 |
\\$ |
2,649 |
\\$ |
23,266 |
\\$ |
0.043 |
\\$ |
21,890 |
\\$ |
10,344 |
\\$ |
(9,892) |
\\$ |
(0.34) |
||||||||||||||||||||
Certain items: |
||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation (1) |
(29) |
29 |
29 |
— |
||||||||||||||||||||||||||||||||||||
Costs related to acquisitions and integrations (2) |
(59) |
(3,531) |
— |
3,590 |
— |
29 |
3,561 |
0.12 |
||||||||||||||||||||||||||||||||
Restructuring and related costs (3) |
(49) |
(3,239) |
(2,649) |
5,937 |
— |
1,144 |
4,793 |
0.16 |
||||||||||||||||||||||||||||||||
Acquisition related interest expense (11) |
— |
— |
— |
— |
(19,134) |
— |
19,134 |
0.66 |
||||||||||||||||||||||||||||||||
Tax (benefits) charges (6) |
— |
— |
— |
— |
— |
(3,559) |
3,559 |
0.12 |
||||||||||||||||||||||||||||||||
Loss (income) from discontinued operations |
— |
— |
— |
— |
— |
— |
18 |
— |
||||||||||||||||||||||||||||||||
Total certain items |
(137) |
— |
% |
(6,770) |
(2,649) |
9,556 |
0.017 |
(19,134) |
(2,386) |
31,094 |
1.06 |
|||||||||||||||||||||||||||||
As Adjusted |
\\$ |
469,964 |
16.2 |
% |
\\$ |
58,072 |
\\$ |
— |
\\$ |
32,822 |
\\$ |
0.060 |
\\$ |
2,756 |
\\$ |
7,958 |
\\$ |
21,202 |
\\$ |
0.72 |
||||||||||||||||||||
Percentage of Revenue |
10.4 |
% |
5.9 |
% |
3.8 |
% |
||||||||||||||||||||||||||||||||||
Effective Tax Rate |
26.5 |
% |
||||||||||||||||||||||||||||||||||||||
Nine months ended |
Cost of Sales |
Gross Margin |
SG&A |
Restructuring Expense |
Operating Income |
Operating Income per Pound |
Non Operating (Income) Expense |
Income Tax Expense (Benefit) |
Net Income Available to ASI Common Stockholders |
Diluted EPS | ||||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | ||||||||||||||||||||||||||||||||||||||||
As reported |
\\$ |
1,587,192 |
16.1 |
% |
\\$ |
222,482 |
\\$ |
8,005 |
\\$ |
73,740 |
\\$ |
0.039 |
\\$ |
42,790 |
\\$ |
4,076 |
\\$ |
20,457 |
\\$ |
0.69 |
||||||||||||||||||||
Certain items: |
||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation (1) |
(4,779) |
(17) |
— |
4,796 |
— |
1,127 |
3,669 |
0.12 |
||||||||||||||||||||||||||||||||
Costs related to acquisitions and integrations (2) |
(2,522) |
(5,048) |
— |
7,570 |
— |
1,779 |
5,791 |
0.20 |
||||||||||||||||||||||||||||||||
Restructuring and related costs (3) |
(2,532) |
(9,422) |
(8,005) |
19,959 |
(771) |
4,872 |
15,858 |
0.54 |
||||||||||||||||||||||||||||||||
Lucent costs (4) |
(1,844) |
(4,424) |
— |
6,268 |
— |
1,473 |
4,795 |
0.17 |
||||||||||||||||||||||||||||||||
Accelerated amortization of deferred financing fees (5) |
— |
— |
— |
— |
(437) |
103 |
334 |
0.01 |
||||||||||||||||||||||||||||||||
Tax (benefits) charges (6) |
— |
— |
— |
— |
— |
3,197 |
(3,197) |
(0.11) |
||||||||||||||||||||||||||||||||
Loss (income) from discontinued operations |
— |
— |
— |
— |
— |
— |
(283) |
(0.01) |
||||||||||||||||||||||||||||||||
Total certain items |
(11,677) |
0.6 |
% |
(18,911) |
(8,005) |
38,593 |
0.021 |
(1,208) |
12,551 |
26,967 |
0.92 |
|||||||||||||||||||||||||||||
As Adjusted |
\\$ |
1,575,515 |
16.7 |
% |
\\$ |
203,571 |
\\$ |
— |
\\$ |
112,333 |
\\$ |
0.060 |
\\$ |
41,582 |
\\$ |
16,627 |
\\$ |
47,424 |
\\$ |
1.61 |
||||||||||||||||||||
Percentage of Revenue |
10.8 |
% |
5.9 |
% |
2.5 |
% |
||||||||||||||||||||||||||||||||||
Effective Tax Rate |
23.5 |
% |
||||||||||||||||||||||||||||||||||||||
Nine months ended |
Cost of Sales |
Gross Margin |
SG&A |
Restructuring Expense |
Operating Income |
Operating Income per Pound |
Non Operating (Income) Expense |
Income Tax Expense (Benefit) |
Net Income Available to ASI Common Stockholders |
Diluted EPS | ||||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | ||||||||||||||||||||||||||||||||||||||||
As reported |
\\$ |
1,462,531 |
14.9 |
% |
\\$ |
195,482 |
\\$ |
10,530 |
\\$ |
49,663 |
\\$ |
0.031 |
\\$ |
26,945 |
\\$ |
18,801 |
\\$ |
2,378 |
\\$ |
0.08 |
||||||||||||||||||||
Certain items: |
||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation (1) |
(327) |
— |
— |
327 |
— |
— |
327 |
0.01 |
||||||||||||||||||||||||||||||||
Costs related to acquisitions and integrations (2) |
(174) |
(7,798) |
— |
7,972 |
— |
307 |
7,665 |
0.26 |
||||||||||||||||||||||||||||||||
Restructuring and related costs (3) |
(347) |
(4,426) |
(10,530) |
15,303 |
— |
3,146 |
12,157 |
0.41 |
||||||||||||||||||||||||||||||||
CEO transition costs (8) |
— |
(6,167) |
— |
6,167 |
— |
— |
6,167 |
0.21 |
||||||||||||||||||||||||||||||||
Inventory step-up (7) |
(341) |
— |
— |
341 |
— |
102 |
239 |
0.01 |
||||||||||||||||||||||||||||||||
Gain on early extinguishment of debt (10) |
— |
— |
— |
— |
1,290 |
(428) |
(862) |
(0.03) |
||||||||||||||||||||||||||||||||
Acquisition related interest expense (11) |
— |
— |
— |
— |
(19,134) |
— |
19,134 |
0.65 |
||||||||||||||||||||||||||||||||
Tax (benefits) charges (6) |
— |
— |
— |
— |
— |
(3,841) |
3,841 |
0.13 |
||||||||||||||||||||||||||||||||
Loss (income) from discontinued operations |
— |
— |
— |
— |
— |
— |
86 |
— |
||||||||||||||||||||||||||||||||
Total certain items |
(1,189) |
— |
% |
(18,391) |
(10,530) |
30,110 |
0.019 |
(17,844) |
(714) |
48,754 |
1.65 |
|||||||||||||||||||||||||||||
As Adjusted |
\\$ |
1,461,342 |
14.9 |
% |
\\$ |
177,091 |
\\$ |
— |
\\$ |
79,773 |
\\$ |
0.050 |
\\$ |
9,101 |
\\$ |
18,087 |
\\$ |
51,132 |
\\$ |
1.73 |
||||||||||||||||||||
Percentage of Revenue |
10.3 |
% |
4.6 |
% |
3.0 |
% |
||||||||||||||||||||||||||||||||||
Effective Tax Rate |
25.6 |
% |
||||||||||||||||||||||||||||||||||||||
1 - Accelerated depreciation is related to restructuring plans in the Company's USCAN and EMEA segments. Refer to Note 14 in the Company's Quarterly Report on Form 10-Q for further discussion.
2 - Costs related to acquisitions and integrations primarily include third party professional, legal, IT and other expenses associated with successful and unsuccessful full or partial acquisition and divestiture/dissolution transactions, as well as certain employee-related expenses such as travel, bonuses and post-acquisition severance separate from a formal restructuring plan.
3 - Restructuring and related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs, and professional fees related to the reorganization of the Company's legal entity structure and facility operations.
4 - Lucent costs primarily represent legal and investigation costs related to resolving the Lucent matter, product manufacturing costs for reworking existing Lucent inventory, obsolete Lucent inventory reserve costs, and dedicated internal personnel costs that would have otherwise been focused on normal operations.
5 - Write off of deferred financing costs related to the €79.0 million prepayment of the Euro Term Loan B.
6 - Tax (benefits) charges represent the Company's quarterly non-GAAP tax based on the overall estimated annual non-GAAP effective tax rates.
7 - Inventory step-up costs represent the amortization of adjustments to fair value of inventory acquired for acquisition purchase accounting.
8 - CEO transition costs represent a charge for the modification and accelerated vesting upon retirement of the outstanding equity compensation awards granted to
Joseph M. Gingo in 2013 and 2014.
9 - Convertible special stock dividends have been added back as the 2.4 million shares of convertible special stock were considered dilutive to the third quarter of fiscal 2016.
10 - Represents a pre-tax net gain of
11 - Primarily relates to
| |||||||||||||||
ADJUSTED EBITDA RECONCILIATION | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended |
Nine months ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(In thousands) | |||||||||||||||
Net income available to |
\\$ |
15,522 |
\\$ |
(9,892) |
\\$ |
20,457 |
\\$ |
2,378 |
|||||||
Interest expense and bridge financing fees |
13,557 |
21,368 |
40,965 |
26,038 |
|||||||||||
Provision for |
312 |
10,344 |
4,076 |
18,801 |
|||||||||||
Depreciation and Amortization |
22,409 |
12,145 |
67,510 |
38,444 |
|||||||||||
Noncontrolling interests |
241 |
343 |
1,075 |
890 |
|||||||||||
Convertible special stock dividends |
1,875 |
563 |
5,625 |
563 |
|||||||||||
Other (1) |
163 |
522 |
1,825 |
907 |
|||||||||||
EBITDA, as calculated |
\\$ |
54,079 |
\\$ |
35,393 |
\\$ |
141,533 |
\\$ |
88,021 |
|||||||
Non-GAAP adjustments (2) |
12,832 |
9,812 |
33,501 |
29,857 |
|||||||||||
EBITDA, as adjusted |
\\$ |
66,911 |
\\$ |
45,205 |
\\$ |
175,034 |
\\$ |
117,878 |
|||||||
(1) - Other includes Foreign currency transaction (gains) losses, Other (income) expense, net, and Gain on early extinguishment of debt.
(2) - For details on Non-GAAP adjustments, refer to "Reconciliation of GAAP and Non-GAAP Financial Measures", items (2) - (11) and Loss (income) from discontinued operations. Amounts are included in Non Operating (Income) Expense, Income Tax Expense (Benefit) and Net Income Available to ASI Common Stockholders. Accelerated depreciation on the "Reconciliation of GAAP and Non-GAAP Financial Measures" has been excluded as it is already included in Depreciation and Amortization above. The three months ended
| |||||||||||||||||||||||||||
SUPPLEMENTAL SEGMENT INFORMATION | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
EMEA |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
33,378 |
\\$ |
33,800 |
\\$ |
(422) |
(1.2) |
% |
13,902 |
13,924 |
(22) |
(0.2) |
% | ||||||||||||||
Masterbatch solutions |
107,774 |
102,188 |
5,586 |
5.5 |
% |
108,291 |
104,355 |
3,936 |
3.8 |
% | |||||||||||||||||
Engineered plastics |
92,560 |
95,403 |
(2,843) |
(3.0) |
% |
72,091 |
71,926 |
165 |
0.2 |
% | |||||||||||||||||
Specialty powders |
36,711 |
37,903 |
(1,192) |
(3.1) |
% |
43,698 |
46,997 |
(3,299) |
(7.0) |
% | |||||||||||||||||
Distribution services |
51,945 |
56,961 |
(5,016) |
(8.8) |
% |
79,816 |
85,689 |
(5,873) |
(6.9) |
% | |||||||||||||||||
Total EMEA |
\\$ |
322,368 |
\\$ |
326,255 |
\\$ |
(3,887) |
(1.2) |
% |
317,798 |
322,891 |
(5,093) |
(1.6) |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
USCAN |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
10,840 |
\\$ |
11,209 |
\\$ |
(369) |
(3.3) |
% |
4,004 |
3,925 |
79 |
2.0 |
% | ||||||||||||||
Masterbatch solutions |
33,575 |
37,077 |
(3,502) |
(9.4) |
% |
50,433 |
51,659 |
(1,226) |
(2.4) |
% | |||||||||||||||||
Engineered plastics |
101,836 |
48,172 |
53,664 |
111.4 |
% |
100,897 |
31,897 |
69,000 |
216.3 |
% | |||||||||||||||||
Specialty powders |
22,426 |
22,914 |
(488) |
(2.1) |
% |
33,689 |
33,563 |
126 |
0.4 |
% | |||||||||||||||||
Distribution services |
14,661 |
17,708 |
(3,047) |
(17.2) |
% |
18,024 |
21,437 |
(3,413) |
(15.9) |
% | |||||||||||||||||
Total USCAN |
\\$ |
183,338 |
\\$ |
137,080 |
\\$ |
46,258 |
33.7 |
% |
207,047 |
142,481 |
64,566 |
45.3 |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
LATAM |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
1,242 |
\\$ |
1,054 |
\\$ |
188 |
17.8 |
% |
468 |
395 |
73 |
18.5 |
% | ||||||||||||||
Masterbatch solutions |
23,103 |
23,769 |
(666) |
(2.8) |
% |
17,657 |
16,789 |
868 |
5.2 |
% | |||||||||||||||||
Engineered plastics |
11,221 |
11,889 |
(668) |
(5.6) |
% |
9,058 |
9,196 |
(138) |
(1.5) |
% | |||||||||||||||||
Specialty powders |
7,811 |
8,109 |
(298) |
(3.7) |
% |
9,445 |
7,177 |
2,268 |
31.6 |
% | |||||||||||||||||
Distribution services |
— |
— |
— |
N/A |
— |
— |
— |
N/A |
|||||||||||||||||||
Total LATAM |
\\$ |
43,377 |
\\$ |
44,821 |
\\$ |
(1,444) |
(3.2)% |
36,628 |
33,557 |
3,071 |
9.2 |
% | |||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
APAC |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
3,113 |
\\$ |
2,567 |
\\$ |
546 |
21.3 |
% |
2,513 |
1,615 |
898 |
55.6 |
% | ||||||||||||||
Masterbatch solutions |
19,705 |
21,375 |
(1,670) |
(7.8) |
% |
22,457 |
22,331 |
126 |
0.6 |
% | |||||||||||||||||
Engineered plastics |
23,328 |
26,454 |
(3,126) |
(11.8) |
% |
18,938 |
19,479 |
(541) |
(2.8) |
% | |||||||||||||||||
Specialty powders |
713 |
2,207 |
(1,494) |
(67.7) |
% |
693 |
2,617 |
(1,924) |
(73.5) |
% | |||||||||||||||||
Distribution services |
21 |
99 |
(78) |
(78.8) |
% |
43 |
135 |
(92) |
(68.1) |
% | |||||||||||||||||
Total APAC |
\\$ |
46,880 |
\\$ |
52,702 |
\\$ |
(5,822) |
(11.0) |
% |
44,644 |
46,177 |
(1,533) |
(3.3) |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
EMEA |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
96,572 |
\\$ |
102,312 |
\\$ |
(5,740) |
(5.6) |
% |
39,424 |
38,320 |
1,104 |
2.9 |
% | ||||||||||||||
Masterbatch solutions |
305,688 |
311,708 |
(6,020) |
(1.9) |
% |
304,893 |
292,602 |
12,291 |
4.2 |
% | |||||||||||||||||
Engineered plastics |
279,435 |
295,212 |
(15,777) |
(5.3) |
% |
214,407 |
207,141 |
7,266 |
3.5 |
% | |||||||||||||||||
Specialty powders |
104,513 |
114,637 |
(10,124) |
(8.8) |
% |
124,470 |
134,043 |
(9,573) |
(7.1) |
% | |||||||||||||||||
Distribution services |
154,586 |
188,723 |
(34,137) |
(18.1) |
% |
237,880 |
276,101 |
(38,221) |
(13.8) |
% | |||||||||||||||||
Total EMEA |
\\$ |
940,794 |
\\$ |
1,012,592 |
\\$ |
(71,798) |
(7.1) |
% |
921,074 |
948,207 |
(27,133) |
(2.9) |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
USCAN |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
30,012 |
\\$ |
31,524 |
\\$ |
(1,512) |
(4.8) |
% |
10,923 |
10,742 |
181 |
1.7 |
% | ||||||||||||||
Masterbatch solutions |
98,646 |
119,514 |
(20,868) |
(17.5) |
% |
145,098 |
160,352 |
(15,254) |
(9.5) |
% | |||||||||||||||||
Engineered plastics |
294,921 |
140,840 |
154,081 |
109.4 |
% |
290,379 |
89,950 |
200,429 |
222.8 |
% | |||||||||||||||||
Specialty powders |
65,495 |
71,574 |
(6,079) |
(8.5) |
% |
92,010 |
111,383 |
(19,373) |
(17.4) |
% | |||||||||||||||||
Distribution services |
43,363 |
51,769 |
(8,406) |
(16.2) |
% |
56,547 |
56,487 |
60 |
0.1 |
% | |||||||||||||||||
Total USCAN |
\\$ |
532,437 |
\\$ |
415,221 |
\\$ |
117,216 |
28.2 |
% |
594,957 |
428,914 |
166,043 |
38.7 |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
LATAM |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
3,698 |
\\$ |
3,457 |
\\$ |
241 |
7.0 |
% |
1,382 |
1,347 |
35 |
2.6 |
% | ||||||||||||||
Masterbatch solutions |
68,149 |
65,971 |
2,178 |
3.3 |
% |
52,958 |
46,316 |
6,642 |
14.3 |
% | |||||||||||||||||
Engineered plastics |
32,170 |
34,857 |
(2,687) |
(7.7) |
% |
26,463 |
25,775 |
688 |
2.7 |
% | |||||||||||||||||
Specialty powders |
22,721 |
27,850 |
(5,129) |
(18.4) |
% |
25,891 |
23,456 |
2,435 |
10.4 |
% | |||||||||||||||||
Distribution services |
— |
— |
— |
N/A |
— |
— |
— |
N/A |
|||||||||||||||||||
Total LATAM |
\\$ |
126,738 |
\\$ |
132,135 |
\\$ |
(5,397) |
(4.1) |
% |
106,694 |
96,894 |
9,800 |
10.1 |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
APAC |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
8,653 |
\\$ |
8,500 |
\\$ |
153 |
1.8 |
% |
7,066 |
5,809 |
1,257 |
21.6 |
% | ||||||||||||||
Masterbatch solutions |
58,187 |
61,038 |
(2,851) |
(4.7) |
% |
65,022 |
60,900 |
4,122 |
6.8 |
% | |||||||||||||||||
Engineered plastics |
68,052 |
79,196 |
(11,144) |
(14.1) |
% |
56,326 |
55,809 |
517 |
0.9 |
% | |||||||||||||||||
Specialty powders |
2,351 |
8,661 |
(6,310) |
(72.9) |
% |
2,510 |
9,084 |
(6,574) |
(72.4) |
% | |||||||||||||||||
Distribution services |
392 |
863 |
(471) |
(54.6) |
% |
603 |
1,062 |
(459) |
(43.2) |
% | |||||||||||||||||
Total APAC |
\\$ |
137,635 |
\\$ |
158,258 |
\\$ |
(20,623) |
(13.0) |
% |
131,527 |
132,664 |
(1,137) |
(0.9) |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
Consolidated |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
48,573 |
\\$ |
48,630 |
\\$ |
(57) |
(0.1) |
% |
20,887 |
19,859 |
1,028 |
5.2 |
% | ||||||||||||||
Engineered composites |
54,476 |
— |
54,476 |
N/A |
45,417 |
— |
45,417 |
N/A |
|||||||||||||||||||
Masterbatch solutions |
184,157 |
184,409 |
(252) |
(0.1) |
% |
198,838 |
195,134 |
3,704 |
1.9 |
% | |||||||||||||||||
Engineered plastics |
228,945 |
181,918 |
47,027 |
25.9 |
% |
200,984 |
132,498 |
68,486 |
51.7 |
% | |||||||||||||||||
Specialty powders |
67,661 |
71,133 |
(3,472) |
(4.9) |
% |
87,525 |
90,354 |
(2,829) |
(3.1) |
% | |||||||||||||||||
Distribution services |
66,627 |
74,768 |
(8,141) |
(10.9) |
% |
97,883 |
107,261 |
(9,378) |
(8.7) |
% | |||||||||||||||||
Total Consolidated |
\\$ |
650,439 |
\\$ |
560,858 |
\\$ |
89,581 |
16.0 |
% |
651,534 |
545,106 |
106,428 |
19.5 |
% | ||||||||||||||
Net Sales |
Pounds Sold | ||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||
Consolidated |
2016 |
2015 |
\\$ Change |
% Change |
2016 |
2015 |
Lbs. Change |
% Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Custom performance colors |
\\$ |
138,935 |
\\$ |
145,793 |
\\$ |
(6,858) |
(4.7) |
% |
58,795 |
56,218 |
2,577 |
4.6 |
% | ||||||||||||||
Engineered composites |
153,815 |
— |
153,815 |
N/A |
130,338 |
— |
130,338 |
N/A |
|||||||||||||||||||
Masterbatch solutions |
530,670 |
558,231 |
(27,561) |
(4.9) |
% |
567,971 |
560,170 |
7,801 |
1.4 |
% | |||||||||||||||||
Engineered plastics |
674,578 |
550,105 |
124,473 |
22.6 |
% |
587,575 |
378,675 |
208,900 |
55.2 |
% | |||||||||||||||||
Specialty powders |
195,080 |
222,722 |
(27,642) |
(12.4) |
% |
244,881 |
277,966 |
(33,085) |
(11.9) |
% | |||||||||||||||||
Distribution services |
198,341 |
241,355 |
(43,014) |
(17.8) |
% |
295,030 |
333,650 |
(38,620) |
(11.6) |
% | |||||||||||||||||
Total Consolidated |
\\$ |
1,891,419 |
\\$ |
1,718,206 |
\\$ |
173,213 |
10.1 |
% |
1,884,590 |
1,606,679 |
277,911 |
17.3 |
% | ||||||||||||||
| |||||||||||||||
SUPPLEMENTAL SEGMENT INFORMATION | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended |
Nine months ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(In thousands, except for %'s) | |||||||||||||||
Segment gross profit |
|||||||||||||||
EMEA |
\\$ |
49,852 |
\\$ |
51,695 |
\\$ |
136,489 |
\\$ |
145,908 |
|||||||
USCAN |
32,560 |
22,104 |
90,095 |
66,478 |
|||||||||||
LATAM |
9,055 |
9,324 |
27,226 |
22,075 |
|||||||||||
APAC |
8,080 |
7,771 |
24,153 |
22,403 |
|||||||||||
EC |
13,746 |
— |
37,941 |
— |
|||||||||||
Total segment gross profit |
113,293 |
90,894 |
315,904 |
256,864 |
|||||||||||
Inventory step-up |
— |
— |
— |
(341) |
|||||||||||
Accelerated depreciation and restructuring related costs |
(2,930) |
(78) |
(7,311) |
(674) |
|||||||||||
Costs related to acquisitions and integrations |
(423) |
(59) |
(2,522) |
(174) |
|||||||||||
Lucent costs |
(466) |
— |
(1,844) |
— |
|||||||||||
Total gross profit |
\\$ |
109,474 |
\\$ |
90,757 |
\\$ |
304,227 |
\\$ |
255,675 |
|||||||
Segment operating income |
|||||||||||||||
EMEA |
\\$ |
23,382 |
\\$ |
24,716 |
\\$ |
59,147 |
\\$ |
61,032 |
|||||||
USCAN |
15,576 |
7,982 |
38,166 |
25,299 |
|||||||||||
LATAM |
4,748 |
4,654 |
14,581 |
7,531 |
|||||||||||
APAC |
4,540 |
3,972 |
13,517 |
10,903 |
|||||||||||
EC |
5,031 |
— |
10,583 |
— |
|||||||||||
Total segment operating income |
53,277 |
41,324 |
135,994 |
104,765 |
|||||||||||
Corporate |
(7,489) |
(8,502) |
(23,661) |
(24,992) |
|||||||||||
Costs related to acquisitions and integrations |
(1,443) |
(3,590) |
(7,570) |
(7,972) |
|||||||||||
Restructuring and related costs |
(9,520) |
(5,937) |
(19,959) |
(15,303) |
|||||||||||
Accelerated depreciation |
(1,286) |
(29) |
(4,796) |
(327) |
|||||||||||
Lucent costs |
(1,951) |
— |
(6,268) |
— |
|||||||||||
Inventory step-up |
— |
— |
— |
(341) |
|||||||||||
CEO transition costs |
— |
— |
— |
(6,167) |
|||||||||||
Operating income |
31,588 |
23,266 |
73,740 |
49,663 |
|||||||||||
Interest expense |
(13,557) |
(2,618) |
(40,965) |
(7,288) |
|||||||||||
Bridge financing fees |
— |
(18,750) |
— |
(18,750) |
|||||||||||
Foreign currency transaction gains (losses) |
(392) |
(857) |
(2,071) |
(3,097) |
|||||||||||
Other income (expense), net |
229 |
335 |
246 |
900 |
|||||||||||
Gain on early extinguishment of debt |
— |
— |
— |
1,290 |
|||||||||||
Income from continuing operations before taxes |
\\$ |
17,868 |
\\$ |
1,376 |
\\$ |
30,950 |
\\$ |
22,718 |
|||||||
Capacity utilization |
|||||||||||||||
EMEA |
88 |
% |
94 |
% |
82 |
% |
88 |
% | |||||||
USCAN |
67 |
% |
62 |
% |
67 |
% |
63 |
% | |||||||
LATAM |
73 |
% |
76 |
% |
72 |
% |
71 |
% | |||||||
APAC |
68 |
% |
67 |
% |
66 |
% |
65 |
% | |||||||
EC |
72 |
% |
— |
% |
69 |
% |
— |
% | |||||||
Worldwide |
75 |
% |
78 |
% |
73 |
% |
75 |
% |
| |||||||||||||||||||||
Sales by | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
(In thousands, except for %'s)
| |||||||||||||||||||||
Thermoplastics |
Engineered Composites |
Total | |||||||||||||||||||
|
Sales by Region |
% of TP |
Sales by Region |
% of EC |
Total Sales |
Total % | |||||||||||||||
|
\\$ |
183,338 |
30.8 |
% |
\\$ |
39,030 |
71.6 |
% |
\\$ |
222,368 |
34.2 |
% | |||||||||
|
322,368 |
54.0 |
% |
5,841 |
10.8 |
% |
328,209 |
50.5 |
% | ||||||||||||
|
43,377 |
7.3 |
% |
9,605 |
17.6 |
% |
52,982 |
8.1 |
% | ||||||||||||
|
46,880 |
7.9 |
% |
— |
— |
% |
46,880 |
7.2 |
% | ||||||||||||
Total |
\\$ |
595,963 |
100.0 |
% |
\\$ |
54,476 |
100.0 |
% |
\\$ |
650,439 |
100.0 |
% | |||||||||
Three months ended | |||||||||||||||||||||
(In thousands, except for %'s)
| |||||||||||||||||||||
Thermoplastics |
Engineered Composites |
Total | |||||||||||||||||||
|
Sales by Region |
% of TP |
Sales by Region |
% of EC |
Total Sales |
Total % | |||||||||||||||
|
\\$ |
137,080 |
24.4 |
% |
\\$ |
— |
— |
% |
\\$ |
137,080 |
24.4 |
% | |||||||||
|
326,255 |
58.2 |
% |
— |
— |
% |
326,255 |
58.2 |
% | ||||||||||||
|
44,821 |
8.0 |
% |
— |
— |
% |
44,821 |
8.0 |
% | ||||||||||||
|
52,702 |
9.4 |
% |
— |
— |
% |
52,702 |
9.4 |
% | ||||||||||||
Total |
\\$ |
560,858 |
100.0 |
% |
\\$ |
— |
— |
% |
\\$ |
560,858 |
100.0 |
% | |||||||||
Nine months ended | |||||||||||||||||||||
(In thousands, except for %'s)
| |||||||||||||||||||||
Thermoplastics |
Engineered Composites |
Total | |||||||||||||||||||
|
Sales by Region |
% of TP |
Sales by Region |
% of EC |
Total Sales |
Total % | |||||||||||||||
|
\\$ |
532,437 |
30.6 |
% |
\\$ |
110,199 |
71.6 |
% |
\\$ |
642,636 |
34.0 |
% | |||||||||
|
940,794 |
54.2 |
% |
17,289 |
11.2 |
% |
958,083 |
50.7 |
% | ||||||||||||
|
126,738 |
7.3 |
% |
26,327 |
17.2 |
% |
153,065 |
8.0 |
% | ||||||||||||
|
137,635 |
7.9 |
% |
— |
— |
% |
137,635 |
7.3 |
% | ||||||||||||
Total |
\\$ |
1,737,604 |
100.0 |
% |
\\$ |
153,815 |
100.0 |
% |
\\$ |
1,891,419 |
100.0 |
% | |||||||||
Nine months ended | |||||||||||||||||||||
(In thousands, except for %'s)
| |||||||||||||||||||||
Thermoplastics |
Engineered Composites |
Total | |||||||||||||||||||
|
Sales by Region |
% of TP |
Sales by Region |
% of EC |
Total Sales |
Total % | |||||||||||||||
|
\\$ |
415,221 |
24.2 |
% |
\\$ |
— |
— |
% |
\\$ |
415,221 |
24.2 |
% | |||||||||
|
1,012,592 |
58.8 |
% |
— |
— |
% |
1,012,592 |
58.9 |
% | ||||||||||||
|
132,135 |
7.7 |
% |
— |
— |
% |
132,135 |
7.7 |
% | ||||||||||||
|
158,258 |
9.3 |
% |
— |
— |
% |
158,258 |
9.2 |
% | ||||||||||||
Total |
\\$ |
1,718,206 |
100.0 |
% |
\\$ |
— |
— |
% |
\\$ |
1,718,206 |
100.0 |
% | |||||||||
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