October 22, 2014

A. Schulman Reports Strong Fiscal 2014 Fourth-Quarter And Full-Year Results

AKRON, Ohio, Oct. 22, 2014 /PRNewswire/ --

  • Full-year fiscal 2014 net income from continuing operations was $53.0 million, or $1.80 per diluted share, compared with $32.8 million, or $1.12 per diluted share, in fiscal 2013
  • Adjusted net income from continuing operations for fiscal 2014, excluding certain items, was $69.3 million, or $2.36 per diluted share, a 29% improvement over the prior year
  • Company announces fiscal 2015 adjusted net income guidance of $2.60 to $2.65 per diluted share, a double-digit increase compared with fiscal 2014 results

A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal fourth quarter and full fiscal year ended August 31, 2014.

Joseph M. Gingo, Chairman, President and Chief Executive Officer, said, "I want to thank our global teams in helping us to achieve a record year in fiscal 2014.  Our successful acquisitions and organic growth strategy, combined with our ongoing focus on improving operational performance and efficiency, enabled us to deliver strong double-digit sales and income growth in 2014. While we are very pleased with these results, our focus is on the future.  Despite anticipated slow growth globally, I am very confident that our seasoned team, which has weathered many challenging conditions in Europe and other parts of the world in the recent past, will take the proactive steps necessary to drive double-digit adjusted earnings-per-share growth in fiscal 2015.  I am also encouraged that our recent acquisitions over the past year in the U.S. are performing well and are helping us offset global economic slowdowns.  Through successful execution of our strategy, we are improving our position in target markets, diversifying our product mix and increasing our prospects for sustainable and profitable growth."

Bernard Rzepka, Chief Operating Officer, stated, "Net sales and operating income increased for the full year in each of our operating regions, as our recent acquisitions and organic growth contributed to our improved results in all three regions.  Our team is highly focused and executing on our safety, smart sales, smart savings initiatives and our 2014 results demonstrate what we can achieve.  Our acquisition of Compco in September and the recently announced restructuring program in Europe are examples of the proactive actions we are taking to drive profitable growth."

Fiscal Fourth-Quarter Results
Net sales for the fiscal 2014 fourth quarter were $627.4 million, an increase of 16.8% compared with $537.3 million in the prior-year quarter.

Net sales in the EMEA segment were $388.6 million, an increase of 11.2% or $39.2 million in the fourth quarter compared with the same period last year.  Volume increased 7.7% or 22.6 million pounds for the quarter to 314.8 million pounds in the fourth quarter of 2014.  During the quarter, the incremental contribution of the two acquisitions in the EMEA segment was $26.6 million and 17.4 million pounds in net sales and volume, respectively.  Foreign currency translation favorably impacted the segment's net sales by $9.6 million.  EMEA gross profit was $50.0 million for the quarter, an increase of $4.5 million or 9.9% compared with the same three-month period last year. Foreign currency translation positively impacted EMEA gross profit by $1.2 million.

Net sales for the Americas were $188.3 million, an increase of 21.9% or $33.8 million in the fourth quarter compared with the prior-year period.  Volume increased 3.8% or 6.7 million pounds during the quarter.  During the quarter, the incremental net sales and volume contribution of the three acquisitions in the Americas segment was $32.9 million and 21.2 million pounds, respectively.  Foreign currency translation negatively impacted the segment's net sales by $2.3 million. Gross profit for the Americas was $28.6 million in the quarter, an increase of $7.4 million or 35.1% compared with the same period last year.

Net sales for APAC were $50.4 million, an increase of 50.8% or $17.0 million in the fourth quarter compared with the prior-year period. Volume increased 52.6% or 13.8 million pounds during the quarter.  The contribution of the Perrite acquisition in APAC was $14.9 million and 11.1 million pounds in net sales and volume, respectively.  Gross profit for APAC for the quarter increased $0.4 million or 6.5% compared with the prior-year period.

Fiscal 2014 Results
Net sales for the fiscal year ended August 31, 2014, were approximately $2.5 billion, an increase of $313.6 million or 14.7% compared with fiscal 2013.  Volume increased 8.7% or 167.4 million pounds during the year.  Incremental net sales and volume from the Company's recent acquisitions contributed $217.0 million and 147.8 million pounds, respectively, in fiscal 2014.  Excluding the impact of recent acquisitions, net sales were positively affected by a 3.5% increase in price per pound and a 1% increase in volume.  Foreign currency translation favorably impacted net sales by $38.1 million.

The Company's SG&A expenses, excluding certain items, increased $32.7 million compared with the prior year, to $232.7 million.  The increase was primarily attributable to incremental SG&A expense of $12.1 million from recent acquisitions, higher variable incentive compensation expense of $11.5 million attributable to the Company's fiscal performance and unfavorable foreign currency translation of $3.0 million.  SG&A expense, excluding certain items, was 9.5% of net sales for fiscal 2014. Operating income increased $19.2 million for fiscal 2014 compared with the prior year. Total operating income, before certain items, was $99.9 million, an increase of $17.0 million or 20.5% compared with fiscal 2013.

Working Capital/Cash Flow From Operations
Cash provided from operations was $113.1 million in fiscal 2014 compared with $83.7 million in fiscal 2013.  Working capital was 57 days at the end of fiscal 2014 compared with 58 days at the end of fiscal 2013.

Capital expenditures for fiscal 2014 were $35.1 million compared with $26.6 million for the prior year, and were primarily related to the regular and ongoing investment in the Company's global manufacturing facilities.

During the fourth quarter and full year ended August 31, 2014, the Company declared and paid cash dividends of $0.20 and $0.80 per common share, respectively. The total amount of these dividends was $5.9 million for the fourth quarter and $23.7 million for the full year.

Business Outlook
Rzepka said, "With 10 acquisitions in the past four years and our numerous value-added organic growth initiatives, we continue to aggressively drive profits. We are actively focusing on pricing, cross-selling, attractive markets and driving profitable new products. Through our acquisition strategy, we will continue to expand our footprint, engage new customers and strengthen our ability to serve local and global customers.  In combination, we believe we can be successful despite weak macroeconomic conditions especially in Europe. As we continue to focus on execution, we expect this progress to continue in fiscal 2015."

Rzepka continued, "Our goal remains to control what we can control, manage our operational footprint proactively and efficiently, execute on our acquisition strategy, support sales and marketing initiatives, and drive year-over-year growth in adjusted earnings per diluted share.  As a result, we anticipate that our fiscal 2015 adjusted net income will increase to a range of $2.60 to $2.65 per diluted share."

Conference Call on the Web
A live Internet broadcast of A. Schulman's conference call regarding fiscal 2014 fourth-quarter and full-year earnings can be accessed at 10:00 a.m. Eastern Time on Thursday, October 23, 2014, on the Company's website, www.aschulman.com.  An archived replay of the call will also be available on the website.

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. Schulman, Inc.
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio.  Since 1928, the Company has been providing innovative solutions to meet its customers' demanding requirements.  The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others.  The Company employs approximately 3,900 people and has 42 manufacturing facilities globally.  A. Schulman reported net sales of approximately $2.5 billion for the fiscal year ended August 31, 2014. 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 segment gross profit, SG&A expenses excluding certain items, operating income excluding certain items, net income excluding certain items and net income per diluted share excluding certain items, 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 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, joint ventures 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 as well as other markets served;
  • further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products; and
  • operating problems with our information systems as a result of system security failures such as viruses, computer "hackers" or  other causes.

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, 2014. 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 August 31,


Year ended August 31,


2014



2013



2014



2013



Unaudited

(In thousands, except per share data)

Net sales

$

627,358



$

537,288



$

2,446,998



$

2,133,402


Cost of sales

542,721



465,019



2,116,990



1,852,223


Selling, general and administrative expenses

60,838



47,627



242,486



205,370


Restructuring expense

300



5,087



4,883



10,500


Asset impairment



254



104



1,873


Curtailment and settlement (gains) losses

214





214



333


Operating income

23,285



19,301



82,321



63,103


Interest expense

2,391



2,098



8,503



7,657


Interest income

(75)



(87)



(286)



(495)


Foreign currency transaction (gains) losses

86



1,747



2,206



2,426


Other (income) expense, net

(167)



156



(434)



(217)


Income from continuing operations before taxes

21,050



15,387



72,332



53,732


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

5,886



16,149



18,542



19,733


Income from continuing operations

15,164



(762)



53,790



33,999


Income (loss) from discontinued operations, net of tax

223



(1,571)



3,202



(6,671)


Net income

15,387



(2,333)



56,992



27,328


Noncontrolling interests

(215)



(349)



(799)



(1,229)


Net income attributable to A. Schulman, Inc.

$

15,172



$

(2,682)



$

56,193



$

26,099














Weighted-average number of shares outstanding:












Basic

29,088



29,213



29,061



29,260


Diluted

29,517



29,295



29,362



29,337














Basic earnings per share attributable to A. Schulman, Inc.










Income from continuing operations

$

0.51



$

(0.04)



$

1.82



$

1.12


Income (loss) from discontinued operations

$

0.01



$

(0.05)



$

0.11



$

(0.23)


Net income attributable to A. Schulman, Inc.

$

0.52



$

(0.09)



$

1.93



$

0.89














Diluted earnings per share attributable to A. Schulman, Inc.










Income from continuing operations

$

0.51



$

(0.04)



$

1.80



$

1.12


Income (loss) from discontinued operations

$

0.01



$

(0.05)



$

0.11



$

(0.23)


Net income attributable to A. Schulman, Inc.

$

0.52



$

(0.09)



$

1.91



$

0.89














Cash dividends per common share

$

0.200



$

0.195



$

0.800



$

0.780


 

 


A. SCHULMAN, INC.

CONSOLIDATED BALANCE SHEETS






August 31,
 2014


August 31,
 2013


Unaudited

(In thousands)

ASSETS

Current assets:






Cash and cash equivalents

$

135,493



$

134,054


Accounts receivable, net

384,444



310,749


Inventories

292,141



261,658


Prepaid expenses and other current assets

40,473



41,224


Total current assets

852,551



747,685


Property, plant and equipment, at cost:






Land and improvements

28,439



27,954


Buildings and leasehold improvements

160,858



146,647


Machinery and equipment

398,563



356,144


Furniture and fixtures

41,255



39,065


Construction in progress

16,718



7,149


Gross property, plant and equipment

645,833



576,959


Accumulated depreciation

391,912



366,438


Net property, plant and equipment

253,921



210,521


Deferred charges and other noncurrent assets

65,079



48,723


Goodwill

202,299



139,526


Intangible assets, net

138,634



91,887


Total assets

$

1,512,484



$

1,238,342


LIABILITIES AND EQUITY

Current liabilities:






Accounts payable

$

314,957



$

265,477


U.S. and foreign income taxes payable

6,385



6,423


Accrued payroll, taxes and related benefits

54,199



40,759


Other accrued liabilities

46,054



48,689


Short-term debt

31,748



8,373


Total current liabilities

453,343



369,721


Long-term debt

339,546



207,435


Pension plans

129,949



98,599


Deferred income taxes

23,826



20,873


Other long-term liabilities

29,369



26,970


Total liabilities

976,033



723,598


Commitments and contingencies






Stockholders' equity:






Common stock, $1 par value, authorized - 75,000 shares, issued -  48,185 shares in 2014 and 48,094 shares in 2013

48,185



48,094


Additional paid-in capital

268,545



263,158


Accumulated other comprehensive income (loss)

(16,691)



682


Retained earnings

606,898



574,370


Treasury stock, at cost, 18,973 shares in 2014 and 18,940 shares in 2013

(379,894)



(378,927)


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

527,043



507,377


Noncontrolling interests

9,408



7,367


Total equity

536,451



514,744


Total liabilities and equity

$

1,512,484



$

1,238,342


 

 


A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS




Year ended August 31,


2014



2013



Unaudited

(In thousands)

Operating from continuing and discontinued operations:






Net income

$

56,992



$

27,328


Adjustments to reconcile net income to net cash provided from (used in) operating activities:






Depreciation

33,697



29,982


Amortization

14,207



11,469


Deferred tax provision

(3,007)



(1,194)


Pension, postretirement benefits and other compensation

10,802



6,282


Asset impairment

104



5,873


Curtailment and settlement (gains) losses

214



333


Gain on sale of assets from discontinued operations

(3,365)




Changes in assets and liabilities, net of acquisitions:






Accounts receivable

(5,875)



1,790


Inventories

7,099



(6,376)


Accounts payable

(3,497)



8,924


Income taxes

(1,372)



(320)


Accrued payroll and other accrued liabilities

5,189



5,415


Other assets and long-term liabilities

1,954



(5,793)


Net cash provided from (used in) operating activities

113,142



83,713


Investing from continuing and discontinued operations:






Expenditures for property, plant and equipment

(35,089)



(26,568)


Proceeds from the sale of assets

6,004



13,886


Business acquisitions, net of cash

(206,625)



(36,805)


Net cash provided from (used in) investing activities

(235,710)



(49,487)


Financing from continuing and discontinued operations:






Cash dividends paid

(23,665)



(22,934)


Increase (decrease) in short-term debt

13,774



3,324


Borrowings on long-term debt

795,745



264,908


Repayments on long-term debt and current portion

(653,894)



(264,613)


Payment of debt issuance costs

(1,782)




Noncontrolling interests' contributions (distributions)

600




Issuances of stock, common and treasury

487



1,561


Redemptions of common stock

(361)



(396)


Purchases of treasury stock

(1,116)



(8,091)


Net cash provided from (used in) financing activities

129,788



(26,241)


Effect of exchange rate changes on cash

(5,781)



2,038


Net increase (decrease) in cash and cash equivalents

1,439



10,023


Cash and cash equivalents at beginning of year

134,054



124,031


Cash and cash equivalents at end of year

$

135,493



$

134,054








Cash paid during the year for:






Interest

$

7,578



$

5,487


Income taxes

$

21,720



$

15,598


 

 

A. SCHULMAN, INC.


Reconciliation of GAAP and Non-GAAP Financial Measures (Unaudited)

























Three months ended August 31, 2014


Cost of Sales


Gross margin


SG&A



Restructuring expense



Asset impairment


Operating income


Operating income per pound


Income tax expense (benefit)


Net income attributable to A. Schulman, Inc.


Diluted EPS

(In thousands, except for %'s, per pound and per share data)


As reported


$

542,721



13.5

%


$

60,838




$

300




$



$

23,285



$

0.043



$

5,886



$

15,172



$

0.52


Certain items:

































Asset write-downs (1)

























Costs related to acquisitions (2)







(2,644)









2,644






9



2,635



0.09


Restructuring and related costs (3)


(285)






(710)




(300)







1,509






46



1,463



0.05


Inventory step-up (4)


(269)














269






(54)



323



0.01


Tax benefits (charges)




















(110)



110




Loss (income) from discontinued operations




























(222)



(0.01)


Total certain items


(554)



1.0

%


(3,354)




(300)






4,422



0.009



(109)



4,309



0.14


As Adjusted


$

542,167



13.6

%


$

57,484




$




$



$

27,707



$

0.052



$

5,777



$

19,481



$

0.66



































Percentage of Revenue








9.2

%










4.4

%








3.1

%





































Three months ended August 31, 2013


Cost of Sales


Gross margin


SG&A



Restructuring expense



Asset impairment


Operating income


Operating income per pound


Income tax expense (benefit)


Net income attributable to A. Schulman, Inc.


Diluted EPS



(In thousands, except for %'s, per pound and per share data)

As reported


$

465,019



13.5

%


$

47,627




$

5,087




$

254



$

19,301



$

0.039



$

16,149



$

(2,682)



$

(0.09)


Certain items:

































Asset write-downs (1)


(111)












(254)



365








365



0.01


Costs related to acquisitions (2)







(824)









824






88



736



0.03


Restructuring and related costs (3)


(471)






(1,357)




(5,087)






6,915






1,338



5,577



0.19


Inventory step-up (4)

























Tax benefits (charges) (5)




















(10,595)



10,595



0.36


Loss (income) from discontinued operations




























1,571



0.05


Total certain items


(582)



0.1

%


(2,181)



(5,087)



(254)



8,104



0.016



(9,169)



18,844



0.64


As Adjusted


$

464,437



13.6

%


$

45,446




$




$



$

27,405



$

0.055



$

6,980



$

16,162



$

0.55



































Percentage of Revenue








8.5

%










5.1

%








3.0

%





































1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.













2 - Costs related to acquisitions include third party professional, legal 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, one-time 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 and settlement gains/losses, other employee

      termination costs and charges related to the reorganization of the legal entity structure.

4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting.

5 - Tax benefits (charges) include the effect of the adjustments to the Germany and Brazil valuation allowances in fiscal 2013.

 

 


A. SCHULMAN, INC.








Reconciliation of GAAP and Non-GAAP Financial Measures (continued)






























Year ended August 31, 2014


Cost of Sales


Gross margin


SG&A



Restructuring expense



Asset impairment


Operating income


Operating income per pound


Income tax expense (benefit)


Net income attributable to A. Schulman, Inc.


Diluted EPS



(In thousands, except for %'s, per pound and per share data)

As reported


$

2,116,990



13.5

%


$

242,486




$

4,883




$

104



$

82,321



$

0.039



$

18,542



$

56,193



$

1.91


Certain items:

































Asset write-downs (1)


(107)












(104)



211






34



177



0.01


Costs related to acquisitions (2)


(34)






(5,987)









6,021






154



5,875



0.20


Restructuring and related costs (3)


(935)






(3,800)




(4,883)







9,832






963



9,156



0.31


Inventory step-up (4)


(1,468)














1,468






44



1,424



0.05


Tax benefits (charges)




















316



(316)



(0.01)


Loss (income) from discontinued operations




























(3,202)



(0.11)


Total certain items


(2,544)



0.1

%


(9,787)




(4,883)




(104)



17,532



0.009



1,511



13,114



0.45


As Adjusted


$

2,114,446



13.6

%


$

232,699




$




$



$

99,853



$

0.048



$

20,053



$

69,307



$

2.36



































Percentage of Revenue








9.5

%










4.1

%








2.8

%





































Year ended August 31, 2013


Cost of Sales


Gross margin


SG&A



Restructuring expense



Asset impairment


Operating income


Operating income per pound


Income tax expense (benefit)


Net income attributable to A. Schulman, Inc.


Diluted EPS



(In thousands, except for %'s, per pound and per share data)

As reported


$

1,852,223



13.2

%


$

205,370




$

10,500




$

1,873



$

63,103



$

0.033



$

19,733



$

26,099



$

0.89


Certain items:

































Asset write-downs (1)


(1,058)












(1,873)



2,931






148



2,783



0.09


Costs related to acquisitions (2)







(2,661)









2,661






126



2,535



0.09


Restructuring and related costs (3)


(527)






(2,660)




(10,500)






14,020






2,889



11,131



0.38


Inventory step-up (4)


(138)














138








138




Tax benefits (charges) (5)




















(4,418)



4,418



0.15


Loss (income) from discontinued operations




























6,671



0.23


Total certain items


(1,723)



0.1

%


(5,321)



(10,500)



(1,873)



19,750



0.010



(1,255)



27,676



0.94


As Adjusted


$

1,850,500



13.3

%


$

200,049




$




$



$

82,853



$

0.043



$

18,478



$

53,775



$

1.83



































Percentage of Revenue








9.4

%










3.9

%








2.5

%





































1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.













2 - Costs related to acquisitions include third party professional, legal 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, one-time 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 and settlement gains/losses, other employee

      termination costs and charges related to the reorganization of the legal entity structure.

4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting.

5 - Tax benefits (charges) include the effect of the adjustments to the Germany and Brazil valuation allowances in fiscal 2013.

 

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION








Net Sales


Pounds Sold



Three months ended August 31,

EMEA


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

33,584



$

31,212



$

2,372



7.6

%


10,943



10,933



10



0.1

%

Masterbatch solutions


118,153



105,853



12,300



11.6

%


92,267



85,097



7,170



8.4

%

Engineered plastics


113,322



96,354



16,968



17.6

%


71,785



59,960



11,825



19.7

%

Specialty powders


43,212



41,353



1,859



4.5

%


44,873



43,889



984



2.2

%

Distribution services


80,322



74,577



5,745



7.7

%


94,940



92,331



2,609



2.8

%

  Total EMEA


$

388,593



$

349,349



$

39,244



11.2

%


314,808



292,210



22,598



7.7

%




























Net Sales


Pounds Sold



Three months ended August 31,

Americas


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

7,860



$

4,296



$

3,564



83.0

%


2,964



1,543



1,421



92.1

%

Masterbatch solutions


75,406



70,126



5,280



7.5

%


77,021



82,422



(5,401)



(6.6)%


Engineered plastics


52,921



31,372



21,549



68.7

%


34,200



18,666



15,534



83.2

%

Specialty powders


39,383



36,949



2,434



6.6

%


53,623



58,919



(5,296)



(9.0)%


Distribution services


12,768



11,767



1,001



8.5

%


13,717



13,304



413



3.1

%

  Total Americas


$

188,338



$

154,510



$

33,828



21.9

%


181,525



174,854



6,671



3.8

%




























Net Sales


Pounds Sold



Three months ended August 31,

APAC


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

1,346



$

54



$

1,292



N/A


1,048



21



1,027



N/A

Masterbatch solutions


19,991



20,250



(259)



(1.3)%



18,442



18,028



414



2.3

%

Engineered plastics


24,906



9,755



15,151



155.3

%


16,640



4,848



11,792



243.2

%

Specialty powders


3,984



3,361



623



18.5

%


3,625



3,312



313



9.5

%

Distribution services


200



9



191



N/A


241



6



235



N/A

  Total APAC


$

50,427



$

33,429



$

16,998



50.8

%


39,996



26,215



13,781



52.6

%




























Net Sales


Pounds Sold



Three months ended August 31,

Consolidated


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

42,790



$

35,562



$

7,228



20.3

%


14,955



12,497



2,458



19.7

%

Masterbatch solutions


213,550



196,229



17,321



8.8

%


187,730



185,547



2,183



1.2

%

Engineered plastics


191,149



137,481



53,668



39.0

%


122,625



83,474



39,151



46.9

%

Specialty powders


86,579



81,663



4,916



6.0

%


102,121



106,120



(3,999)



(3.8)%


Distribution services


93,290



86,353



6,937



8.0

%


108,898



105,641



3,257



3.1

%

  Total Consolidated


$

627,358



$

537,288



$

90,070



16.8

%


536,329



493,279



43,050



8.7

%

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION

(continued)




Net Sales


Pounds Sold



Year ended August 31,

EMEA


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

145,074



$

131,762



$

13,312



10.1

%


48,028



45,524



2,504



5.5

%

Masterbatch solutions


455,130



439,678



15,452



3.5

%


355,052



347,052



8,000



2.3

%

Engineered plastics


474,305



364,131



110,174



30.3

%


294,196



225,708



68,488



30.3

%

Specialty powders


181,153



158,572



22,581



14.2

%


181,533



169,247



12,286



7.3

%

Distribution services


322,205



311,739



10,466



3.4

%


383,218



380,072



3,146



0.8

%

  Total EMEA


$

1,577,867



$

1,405,882



$

171,985



12.2

%


1,262,027



1,167,603



94,424



8.1

%




























Net Sales


Pounds Sold



Year ended August 31,

Americas


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

25,438



$

18,826



$

6,612



35.1

%


9,590



6,996



2,594



37.1

%

Masterbatch solutions


268,996



264,705



4,291



1.6

%


290,922



301,729



(10,807)



(3.6)%


Engineered plastics


177,197



135,335



41,862



30.9

%


112,396



81,325



31,071



38.2

%

Specialty powders


154,262



136,398



17,864



13.1

%


204,725



210,598



(5,873)



(2.8)%


Distribution services


47,470



45,560



1,910



4.2

%


51,384



53,266



(1,882)



(3.5)%


  Total Americas


$

673,363



$

600,824



$

72,539



12.1

%


669,017



653,914



15,103



2.3

%




























Net Sales


Pounds Sold



Year ended August 31,

APAC


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

3,495



$

302



$

3,193



N/A


2,748



102



2,646



N/A

Masterbatch solutions


81,672



77,387



4,285



5.5

%


73,568



63,958



9,610



15.0

%

Engineered plastics


93,991



35,311



58,680



166.2

%


62,021



18,537



43,484



234.6

%

Specialty powders


15,095



13,649



1,446



10.6

%


13,699



13,365



334



2.5

%

Distribution services


1,515



47



1,468



N/A


1,863



32



1,831



N/A

  Total APAC


$

195,768



$

126,696



$

69,072



54.5

%


153,899



95,994



57,905



60.3

%




























Net Sales


Pounds Sold



Year ended August 31,

Consolidated


2014



2013



$ Change


% Change


2014



2013



Lbs. Change


% Change



(In thousands, except for %'s)

Custom performance colors


$

174,007



$

150,890



$

23,117



15.3

%


60,366



52,622



7,744



14.7

%

Masterbatch solutions


805,798



781,770



24,028



3.1

%


719,542



712,739



6,803



1.0

%

Engineered plastics


745,493



534,777



210,716



39.4

%


468,613



325,570



143,043



43.9

%

Specialty powders


350,510



308,619



41,891



13.6

%


399,957



393,210



6,747



1.7

%

Distribution services


371,190



357,346



13,844



3.9

%


436,465



433,370



3,095



0.7

%

  Total Consolidated


$

2,446,998



$

2,133,402



$

313,596



14.7

%


2,084,943



1,917,511



167,432



8.7

%

 

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION

(continued)




Three months ended August 31,


Year ended August 31,



2014



2013



2014



2013




Unaudited

(In thousands, except for %'s)














Segment gross profit













EMEA


$

50,031



$

45,525



$

206,268



$

179,242


Americas


28,595



21,160



99,517



81,315


APAC


6,565



6,166



26,767



22,345


Total segment gross profit


85,191



72,851



332,552



282,902


Inventory step-up


(269)





(1,468)



(138)


Accelerated depreciation and restructuring related costs


(285)



(582)



(1,076)



(1,585)


Total gross profit


$

84,637



$

72,269



$

330,008



$

281,179















Segment operating income













EMEA


$

19,153



$

19,432



$

80,690



$

67,320


Americas


13,917



9,374



38,806



28,351


APAC


2,656



3,877



12,527



12,108


Total segment operating income


35,726



32,683



132,023



107,779


Corporate


(8,021)



(5,278)



(32,170)



(24,926)


Costs related to acquisitions


(2,644)



(824)



(6,021)



(2,661)


Restructuring and related costs


(1,295)



(6,915)



(9,618)



(13,687)


Accelerated depreciation




(111)



(107)



(1,058)


Asset impairment




(254)



(104)



(1,873)


Curtailment and settlement gains (losses)


(214)





(214)



(333)


Inventory step-up


(269)





(1,468)



(138)


Operating income


23,283



19,301



82,321



63,103


Interest expense, net


(2,316)



(2,011)



(8,217)



(7,162)


Foreign currency transaction gains (losses)


(86)



(1,747)



(2,206)



(2,426)


Other income (expense), net


167



(156)



434



217


Income from continuing operations before taxes


$

21,048



$

15,387



$

72,332



$

53,732















Capacity Utilization













EMEA


75

%


75

%


82

%


77

%

Americas


67

%


73

%


65

%


67

%

APAC


69

%


68

%


70

%


68

%

Worldwide


71

%


73

%


73

%


72

%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/a-schulman-reports-strong-fiscal-2014-fourth-quarter-and-full-year-results-316280077.html

SOURCE A. Schulman, Inc.

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