January 5, 2012

A. Schulman Reports Fiscal 2012 First-Quarter Results

AKRON, Ohio, Jan. 5, 2012 /PRNewswire/ --

    • Net income increased to $13.6 million, or $0.46 per diluted share, compared with $9.2 million, or $0.29 per diluted share, last year
    • Excluding certain items, first-quarter net income improved to $15.3 million, or $0.52 per diluted share, compared with $10.6 million, or $0.34 per diluted share, last year
    • Gross profit per pound, excluding certain items, rose 10% to 15.2 cents compared with 13.8 cents for the same period last year
    • Selling, general and administrative expense, excluding certain items, decreased by $4.8 million or 9% from last year

A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal 2012 first quarter ended November 30, 2011.  The Company reported net income of $13.6 million, or $0.46 per diluted share, compared with $9.2 million, or $0.29 per diluted share, last year.  Foreign currency translation did not significantly impact net income for the first quarter of fiscal 2012. 

Excluding certain restructuring and acquisition-related charges, net income for the fiscal 2012 first quarter was $15.3 million, or $0.52 per diluted share, compared with $10.6 million, or $0.34 per diluted share, for the prior-year period.   

Net sales for the fiscal 2012 first quarter were $517.3 million, an increase of 4.4% compared with $495.4 million for the same period last year.  The improvement was primarily driven by increased average selling price per pound due to improved mix, partially offset by a decrease in volume.  Foreign currency translation favorably impacted consolidated net sales by 1.3%.  Volume was 456.3 million pounds in the first quarter of fiscal 2012, down 9.2% from 502.6 million pounds reported last year.

The Company uses non-GAAP financial measures, such as net income excluding certain items, net income per diluted share excluding certain items and EBITDA excluding certain items.  These financial measures are used by management to monitor and evaluate the ongoing performance of the Company and to allocate resources.  The Company believes that the additional measures are useful to investors for financial analysis.  However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.  Please see the table in this release for reconciliation of non-GAAP measures to the nearest comparable GAAP results.  Results in the following discussion are presented on a non-GAAP basis excluding certain items.

Gross profit for the quarter was $69.5 million compared with $69.1 million last year.  Foreign currency translation favorably impacted gross profit by $0.7 million.  Overall gross profit per pound for the quarter was 15.2 cents, a 10% increase over the fiscal 2011 first quarter. 

Selling, general and administrative (SG&A) expense for the fiscal 2012 first quarter was $47.2 million compared with $52.0 million reported last year. The decrease was a result of the Company realizing synergies related to the continued integration of acquisitions, and efforts to control costs. Foreign currency translation negatively impacted SG&A expense by $0.6 million.

First-quarter operating income was $22.3 million compared with $17.1 million last year.  The increase in operating income was primarily due to the $4.8 million decrease in SG&A.  Foreign currency translation did not significantly impact operating income for the first quarter of fiscal 2012.

"We saw improvement in our Americas region which is a direct result of our strategy to shift our product mix away from commodity products and focus on more profitable markets.  As we build U.S. presence in our masterbatch, niche engineered plastics and specialty powders business, we expect to see further improvements in the region.  Despite the overall economic softness in Europe, the majority of our European business is directed at the northern section of the Euro Zone, which has proven to be stronger and more resilient during this economic downturn.  Throughout this period, our European team focused on what was within their control, namely plant and SG&A spending, to offset the negative effect of volume declines," said Joseph M. Gingo, Chairman, President and Chief Executive Officer.  "I am pleased with our team's outstanding efforts to improve our operating profit per pound in the face of decreasing volume and a competitive pricing environment." 

Europe, Middle East and Africa ("EMEA") — In the fiscal 2012 first quarter, EMEA net sales were $352.9 million compared with $346.7 million in the first quarter of fiscal 2011.  The increase in net sales was primarily related to an increase of 12.6% in average selling price per pound attributed to selling higher value-added products as well as the favorable impact of foreign currency translation of $7.2 million.

EMEA gross profit was $44.2 million for the fiscal 2012 first quarter compared with $48.1 million for the same period last year.  The decrease in gross profit was primarily related to decreased volumes in the masterbatch and specialty powders product families, partially offset by a positive price effect and lower production costs. Despite the volume decrease, gross profit per pound increased 2.0%.  Foreign currency translation favorably impacted EMEA gross profit by $1.0 million

EMEA operating income for the fiscal 2012 first quarter was $19.2 million compared with $19.4 million in the first quarter of 2011.  The slight decrease in operating income was primarily due to the lower gross profit which was substantially offset by lower SG&A expenses.  SG&A expenses were favorably impacted by continued actions to control costs.

The Americas In the fiscal 2012 first quarter, net sales for the Americas were $128.0 million compared with $115.1 million for the same period a year ago.  The increase in net sales resulted from an incremental gain of $8.2 million from acquisitions that occurred in fiscal 2011 along with a 20.5% increase in price per pound.  Foreign currency translation negatively impacted net sales by $1.7 million

Gross profit was $19.9 million for the quarter compared with $16.5 million for the same period last year.  The increases in gross profit and gross profit per pound of 20.7% and 30.6%, respectively, were primarily due to higher net sales in the masterbatch and engineered plastics product families and the successful implementation of operational efficiencies which helped mitigate rising raw material costs. Also of note, the fiscal 2011 acquisitions contributed $1.3 million of incremental fiscal 2012 gross profit. Foreign currency translation negatively impacted gross profit by $0.4 million.

Operating income for the fiscal 2012 first quarter was $6.1 million compared with $3.9 million in the first quarter of 2011.  The improvement was primarily driven by higher gross profit per pound, partially offset by a slight rise in SG&A expenses.

Asia Pacific ("APAC") In the fiscal 2012 first quarter, APAC net sales were $36.4 million compared with $33.6 million for the same period a year ago.  The increase in net sales was primarily related to the masterbatch and engineered plastics product families and was partially offset by decreased net sales in the specialty powders product family.  Volume declined 13.0% partially as a result of customers' lower export sales to Europe.  Despite this drop in volume, the APAC segment continues to report incremental improvement.  Foreign currency translation favorably impacted net sales by approximately $1.1 million.

Gross profit was $5.4 million, an increase of $0.8 million compared with last year. Gross profit increased primarily due to improved net sales in the masterbatch and engineered plastics product families, partially offset by a decrease in net sales in the specialty powders product family. 

Operating income for the fiscal 2012 first quarter was $2.5 million compared with $1.8 million last year. The increase in profitability was principally due to the improvement in gross profit.

Liquidity, Cash Flow From Operations and Working Capital

Working capital increased to 71 days at the end of the fiscal 2012 first quarter, from 60 days at the end of fiscal 2011, and 71 days at the end of the first quarter of fiscal 2011.  The increase from 2011 fiscal year-end was attributable to an increase in inventory levels in the face of declining volumes, and a reduction of trade payables.  Cash flow used in operations was $21.3 million for the first quarter.

The Company's net debt position was $96.3 million, an increase of $55.9 million compared with the fiscal 2011 fourth quarter, and was primarily a result of net share repurchases during the quarter of $21.2 million, capital expenditures of $9.1 million, working capital needs and dividend payments of $5.1 million. During the first quarter, the Company increased its regular quarterly cash dividend by approximately 10%, which represented an annual yield of approximately 3.5%. This reflects the Company's confidence in strong cash generation and long-term growth prospects.

Fiscal 2012 Business Outlook

The fiscal 2012 second quarter is expected to be challenged by declining demand in Europe.  Offsetting these expected volume declines, the EMEA and Americas segments will benefit from the restructuring efforts that are ongoing and operating efficiencies driven by acquisition integration activities.   The Company expects to continue to focus on global SG&A and plant cost controls.

Conference Call on the Web

A live Internet broadcast of A. Schulman's conference call regarding fiscal 2012 first-quarter earnings can be accessed at 10:00 a.m. Eastern Time on January 6, 2012, on the Company's website, www.aschulman.com.  An archived replay of the call will also be available on the website.

About A. Schulman, Inc.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. The Company's customers span a wide range of markets such as packaging, consumer products, industrial and automotive, among others.  The Company employs about 3,000 people and has 35 manufacturing facilities globally.  A. Schulman reported net sales of $2.2 billion for the fiscal year ended August 31, 2011.  Additional information about A. Schulman can be found at www.aschulman.com.

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: net income excluding certain items, net income per diluted share excluding certain items and EBITDA excluding certain items. 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 income before taxes, 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 Note on Forward-Looking 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 may 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 may 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 major 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 and restructuring initiatives;
  • escalation in the cost of providing employee health care;
  • uncertainties regarding the resolution of pending and future litigation and other claims;
  • the performance of the global automotive market; and
  • further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products.

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, 2011. 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

  

 

 

 

 

 

 

 

 

 

A. SCHULMAN, INC.

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended November 30,

 

 

 

 

 

 

2011

 

2010

 

 

 

 

 

 

Unaudited

 

 

 

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Net sales

$   517,289

 

$    495,383

 

 

 

Cost of sales

447,793

 

426,382

 

 

 

Selling, general and administrative expenses

47,415

 

52,905

 

 

 

Restructuring expense 

3,244

 

551

 

 

 

 

Operating income

18,837

 

15,545

 

 

 

Interest expense, net

1,894

 

1,085

 

 

 

Foreign currency transaction (gains) losses

499

 

670

 

 

 

Other (income) expense, net

(170)

 

(4)

 

 

 

 

Income before taxes

16,614

 

13,794

 

 

 

Provision (benefit) for U.S. and foreign income taxes

2,651

 

4,418

 

 

 

 

Net income

13,963

 

9,376

 

 

 

Noncontrolling interests

(381)

 

(133)

 

 

 

 

Net income attributable to A. Schulman, Inc.

 

$     13,582

 

$        9,243

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding:

 

 

 

 

 

 

 

Basic 

29,418

 

31,333

 

 

 

 

Diluted

29,514

 

31,530

 

 

 

 

 

 

 

 

 

 

Earnings per share of common stock attributable to A. Schulman, Inc.:

 

 

 

 

 

 

 

Basic 

$         0.46

 

$          0.29

 

 

 

 

Diluted

$         0.46

 

$          0.29

 

 

 

 

 

 

 

Cash dividends per common share

$       0.170

 

$        0.155

 

 

 

 

 

 

 

  

 

A. SCHULMAN, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

November 30, 2011

 

August 31, 2011

 

 

 

 Unaudited 

 

 

ASSETS

 (In thousands) 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents 

$                      105,681

 

$                155,753

 

 

Accounts receivable, less allowance for doubtful accounts of $9,125 at November 30, 2011
    and $9,475 at August 31, 2011

308,847

 

347,036

 

 

Inventories, average cost or market, whichever is lower

272,425

 

264,747

 

 

Prepaid expenses and other current assets

32,981

 

34,376

 

 

Total current assets

719,934

 

801,912

 

 

 

 

 

 

 

 

Property, plant and equipment, at cost:

 

 

 

 

 

Land and improvements

29,384

 

30,826

 

 

Buildings and leasehold improvements

156,558

 

165,267

 

 

Machinery and equipment

367,138

 

382,828

 

 

Furniture and fixtures

39,844

 

41,860

 

 

Construction in progress

17,561

 

12,967

 

 

Gross property, plant and equipment

610,485

 

633,748

 

 

Accumulated depreciation and investment grants of $725 at November 30, 2011 and $815
    at August 31, 2011

385,865

 

399,448

 

 

Net property, plant and equipment

224,620

 

234,300

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Deferred charges and other noncurrent assets

35,270

 

35,947

 

 

Goodwill

89,740

 

91,753

 

 

Intangible assets

71,710

 

76,075

 

 

Total other assets

196,720

 

203,775

 

 

Total assets

$                   1,141,274

 

$             1,239,987

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

208,548

 

254,405

 

 

U.S. and foreign income taxes payable

6,844

 

11,072

 

 

Accrued payrolls, taxes and related benefits

42,405

 

44,560

 

 

Other accrued liabilities

49,391

 

50,608

 

 

Short-term debt

9,525

 

11,550

 

 

Total current liabilities

316,713

 

372,195

 

 

Long-term debt

192,484

 

184,598

 

 

Pension plans

79,745

 

84,673

 

 

Other long-term liabilities

21,803

 

24,161

 

 

Deferred income taxes

17,618

 

20,055

 

 

Total liabilities

628,363

 

685,682

 

 

 

 

 

 

 

 

Commitments and contingencies

-

 

-

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

Common stock, $1 par value, authorized - 75,000 shares, issued - 47,818 shares at
    November 30, 2011 and 47,816 shares at August 31, 2011

47,818

 

47,816

 

 

Other capital

254,854

 

254,184

 

 

Accumulated other comprehensive income (loss)

20,313

 

50,007

 

 

Retained earnings

549,777

 

541,256

 

 

Treasury stock, at cost, 18,414 shares at November 30, 2011 and 17,207 at
    August 31, 2011

(366,008)

 

(344,759)

 

 

Total A. Schulman, Inc.'s stockholders' equity

506,754

 

548,504

 

 

Noncontrolling interests

6,157

 

5,801

 

 

Total equity 

512,911

 

554,305

 

 

Total liabilities and equity

$                   1,141,274

 

$             1,239,987

 

 

 

 

 

 

 

 

 

  

 

A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Three Months Ended
November 30,

 

 

 

 

2011

 

2010

 

 

 

 

Unaudited

 

 

 

 

(In thousands)

 

 

 

Operating:

 

 

 

 

 

 

 

Net income 

$  13,963

 

$  9,376

 

 

 

 

Adjustments to reconcile net income to net cash 

 

 

 

 

 

 

 

 

provided from (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

9,064

 

9,654

 

 

 

 

 

Deferred tax provision

(2,790)

 

(711)

 

 

 

 

 

Pension, postretirement benefits and other deferred compensation

1,547

 

2,153

 

 

 

 

 

Net (gains) losses on asset sales

(29)

 

88

 

 

 

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

15,731

 

(15,431)

 

 

 

 

 

Inventories

(24,349)

 

(27,579)

 

 

 

 

 

Accounts payable

(30,888)

 

(6,454)

 

 

 

 

 

Income taxes

(4,240)

 

1,622

 

 

 

 

 

Accrued payrolls and other accrued liabilities

2,086

 

4,314

 

 

 

 

 

Other assets and long-term liabilities

(1,360)

 

(2,084)

 

 

 

 

 

 

Net cash provided from (used in) operating activities

(21,265)

 

(25,052)

 

 

 

 

 

 

 

 

 

 

Investing:

 

 

 

 

 

 

 

Expenditures for property, plant and equipment

(9,072)

 

(5,000)

 

 

 

 

Proceeds from the sale of assets

724

 

300

 

 

 

 

Business acquisitions, net of cash acquired

-

 

(15,071)

 

 

 

 

 

 

Net cash provided from (used in) investing activities

(8,348)

 

(19,771)

 

 

 

 

 

 

 

 

 

 

Financing:

 

 

 

 

 

 

 

Cash dividends paid

(5,061)

 

(4,942)

 

 

 

 

Increase (decrease) in notes payable

(1,553)

 

(3,987)

 

 

 

 

Borrowings on revolving credit facilities

40,750

 

53,500

 

 

 

 

Repayments on revolving credit facilities

(28,000)

 

(25,000)

 

 

 

 

Repayments on long-term debt

(4)

 

(26)

 

 

 

 

Cash distributions to noncontrolling interests

-

 

(700)

 

 

 

 

Issuances (purchases) of treasury stock, net

(21,249)

 

49

 

 

 

 

 

 

Net cash provided from (used in) financing activities

(15,117)

 

18,894

 

 

 

Effect of exchange rate changes on cash

(5,342)

 

2,205

 

 

 

Net increase (decrease) in cash and cash equivalents

(50,072)

 

(23,724)

 

 

 

Cash and cash equivalents at beginning of period

155,753

 

122,754

 

 

 

Cash and cash equivalents at end of period

$105,681

 

$99,030

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A. SCHULMAN, INC. 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL SEGMENT INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended November 30,

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 Unaudited 

 

 

 

 

 

 

 

 

 

 

 

 

 (In thousands, except for %) 

 

 

 

 

 

 

 

 

 

 

 

Pounds sold to unaffiliated customers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

286,297

 

316,481

 

 

 

 

 

 

 

 

 

 

 

Americas

140,501

 

152,223

 

 

 

 

 

 

 

 

 

 

 

APAC

29,484

 

33,897

 

 

 

 

 

 

 

 

 

 

 

Total pounds sold to unaffiliated customers

456,282

 

502,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to unaffiliated customers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

$    352,891

 

$     346,683

 

 

 

 

 

 

 

 

 

 

 

Americas

127,980

 

115,120

 

 

 

 

 

 

 

 

 

 

 

APAC

36,418

 

33,580

 

 

 

 

 

 

 

 

 

 

 

Total net sales to unaffiliated customers

$    517,289

 

$     495,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

$      44,238

 

$       48,086

 

 

 

 

 

 

 

 

 

 

 

Americas

19,879

 

16,474

 

 

 

 

 

 

 

 

 

 

 

APAC

5,379

 

4,562

 

 

 

 

 

 

 

 

 

 

 

Total segment gross profit

69,496

 

69,122

 

 

 

 

 

 

 

 

 

 

 

Asset write-downs

-

 

-

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

-

 

(121)

 

 

 

 

 

 

 

 

 

 

 

Total gross profit

$      69,496

 

$       69,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

$      19,235

 

$       19,402

 

 

 

 

 

 

 

 

 

 

 

Americas

6,111

 

3,859

 

 

 

 

 

 

 

 

 

 

 

APAC

2,533

 

1,808

 

 

 

 

 

 

 

 

 

 

 

Total segment operating income

27,879

 

25,069

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

(5,580)

 

(7,971)

 

 

 

 

 

 

 

 

 

 

 

Costs related to acquisitions

(218)

 

(881)

 

 

 

 

 

 

 

 

 

 

 

Restructuring related

(3,244)

 

(551)

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

-

 

(121)

 

 

 

 

 

 

 

 

 

 

 

Operating income

18,837

 

15,545

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

(1,894)

 

(1,085)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency transaction gains (losses)

(499)

 

(670)

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

170

 

4

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

$      16,614

 

$       13,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capacity utilization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

83%

 

80%

 

 

 

 

 

 

 

 

 

 

 

Americas

63%

 

63%

 

 

 

 

 

 

 

 

 

 

 

APAC

86%

 

88%

 

 

 

 

 

 

 

 

 

 

 

Worldwide

74%

 

74%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

A. SCHULMAN, INC. 

Reconciliation of GAAP and Non-GAAP Financial Measures

Unaudited

(In thousands, except per share data)

Three months ended November 30, 2011

 

As Reported

 

Costs Related to Acquisitions

 

Restructuring Related

 

Inventory Step-up

 

Tax Benefits  (Charges)

 

Before Certain Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$  517,289

 

$          -

 

$       -

 

$      -

 

$     -

 

$    517,289

Cost of sales

 

447,793

 

-

 

-

 

-

 

-

 

447,793

Selling, general and administrative expenses

 

47,415

 

(218)

 

-

 

-

 

-

 

47,197

Restructuring expense 

 

3,244

 

-

 

(3,244)

 

-

 

-

 

-

Operating income

 

18,837

 

218

 

3,244

 

-

 

-

 

22,299

Interest expense, net

 

1,894

 

-

 

-

 

-

 

-

 

1,894

Foreign currency transaction (gains) losses

 

499

 

-

 

-

 

-

 

-

 

499

Other (income) expense, net

 

(170)

 

-

 

-

 

-

 

-

 

(170)

Income before taxes

 

16,614

 

218

 

3,244

 

-

 

-

 

20,076

Provision (benefit) for U.S. and foreign income taxes

 

2,651

 

28

 

964

 

-

 

747

 

4,390

Net income

 

13,963

 

190

 

2,280

 

-

 

(747)

 

15,686

Noncontrolling interests

 

(381)

 

-

 

-

 

-

 

-

 

(381)

Net income (loss) attributable to A. Schulman, Inc.

 

$    13,582

 

$      190

 

$        2,280

 

$      -

 

$  (747)

 

$      15,305

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$        0.46

 

 

 

 

 

 

 

 

 

$         0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding -diluted

 

29,514

 

 

 

 

 

 

 

 

 

29,514

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended November 30, 2010

 

As Reported

 

Costs Related to Acquisitions

 

Restructuring Related

 

Inventory Step-up

 

Tax Benefits  (Charges)

 

Before Certain Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$  495,383

 

$         -

 

$         -

 

$     -

 

$   -

 

$    495,383

Cost of sales

 

426,382

 

-

 

-

 

(121)

 

-

 

426,261

Selling, general and administrative expenses

 

52,905

 

(881)

 

-

 

-

 

-

 

52,024

Restructuring expense 

 

551

 

-

 

(551)

 

-

 

-

 

-

Operating income

 

15,545

 

881

 

551

 

121

 

-

 

17,098

Interest expense, net

 

1,085

 

-

 

-

 

-

 

-

 

1,085

Foreign currency transaction (gains) losses

 

670

 

-

 

-

 

-

 

-

 

670

Other (income) expense, net

 

(4)

 

-

 

-

 

-

 

-

 

(4)

Income before taxes

 

13,794

 

881

 

551

 

121

 

-

 

15,347

Provision (benefit) for U.S. and foreign income taxes

 

4,418

 

-

 

113

 

43

 

65

 

4,639

Net income

 

9,376

 

881

 

438

 

78

 

(65)

 

10,708

Noncontrolling interests

 

(133)

 

-

 

-

 

-

 

-

 

(133)

Net income (loss) attributable to A. Schulman, Inc.

 

$      9,243

 

$       881

 

$      438

 

$      78

 

$    (65)

 

$      10,575

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$        0.29

 

 

 

 

 

 

 

 

 

$          0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding -diluted

 

31,530

 

 

 

 

 

 

 

 

 

31,530

  

 

A. SCHULMAN, INC. 

Reconciliation of GAAP and Non-GAAP Financial Measures

EBITDA Excluding Certain Items Reconciliation

Unaudited

(In thousands)

 

 

 

 

Three months ended
November 30,

 

 

2011

 

2010

 

 

 

 

 

Income before taxes

 

$    16,614

 

$    13,794

 

 

 

 

 

Adjustments (pretax):

 

 

 

 

Depreciation and amortization

 

9,064

 

9,654

Interest expense, net

 

1,894

 

1,085

Costs related to acquisitions

 

218

 

881

Restructuring related

 

3,244

 

551

Inventory step-up

 

-

 

121

EBITDA excluding certain items

 

$    31,034

 

$    26,086

 

 

 

SOURCE A. Schulman, Inc.

News Provided by Acquire Media


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