April 6, 2015

A. Schulman Reports Strong Operational Performance In Fiscal 2015 Second Quarter

- Solid gross margin expansion within legacy businesses in all regions, despite negative foreign currency translation
- Net sales for the Company's U.S. and Canada business increased over 22% compared with the prior-year period
- Net loss from continuing operations of $888 thousand, or $0.03 per diluted share, includes impact of one-time CEO transition costs, restructuring, acquisition and integration and related costs; adjusted net income from continuing operations, excluding certain items, was $11.5 million, or $0.39 per diluted share, as previously estimated
- Maintains previously revised full-year fiscal 2015 adjusted net income guidance to a range of $2.50 to $2.55 per diluted share, which does not include the impact of the previously announced acquisition of Citadel Plastics, which is expected to close on track in the third quarter of fiscal 2015

AKRON, Ohio, April 6, 2015 /PRNewswire/ -- A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal 2015 second quarter ended February 28, 2015.

Bernard Rzepka, president and chief executive officer, said, "I am encouraged by the improved operational results in all of our regions during the quarter, including the strong increase in our gross margins as a percent of revenue, compared to the year-ago quarter. These results are a testament to the success of our organic growth initiatives, relentless cost reduction and restructuring activities - as well as the contributions from well-integrated acquisitions - that delivered considerable offset against the negative impact of the rapid decline of the foreign currency."

Fiscal Second-Quarter Results
Consolidated net sales for the fiscal 2015 second quarter were $542.3 million, compared with $588.5 million in the prior-year quarter. Foreign currency translation negatively impacted net sales by $59.7 million. Incremental net sales in the second quarter of fiscal 2015 from the Company's recent acquisitions contributed $36.7 million. Gross margin, excluding certain items, in the second quarter as a percent of net sales improved to 14.5% compared with 12.8% in the prior-year period.

Rzepka continued, "Once again, EMEA not only held its own in a challenging environment, but was able to improve operating margins in local currencies during the second quarter of fiscal 2015. We achieved substantial progress in the U.S. and Canada business as a result of our focus on rebuilding our added-value businesses in this high-growth region. Latin America had been challenged in previous quarters but - through vigorous restructuring activities - we are very pleased to see meaningful progress being made. And in our APAC region, despite the competitive environment, we see continuing volume strength and gross margin expansion."

EMEA net sales were $315.1 million compared with $383.0 million in the same prior-year period. Excluding the unfavorable impact of foreign currency translation of $51.7 million, sales declined by 4.2%, primarily due to lower sales prices as a result of declining raw material prices. These declines were partially offset by increased organic volumes in the masterbatch solutions product family, as well as the incremental contribution of the Ferro Specialty Plastics acquisition which increased net sales by $9.7 million. EMEA gross profit was $44.5 million. Excluding the negative impact of foreign currency translation of $6.6 million, gross profit increased by $3.6 million, or 7.5%, primarily due to improved product mix and inventory management as well as the incremental contribution of the Ferro Specialty Plastics acquisition.

Net sales for the U.S. and Canada ("USCAN") were $133.4 million, an increase of 22.8% in the second quarter compared with the prior-year period. During the second quarter, the incremental contribution of the Prime Colorants and Ferro Specialty Plastics acquisitions was $24.6 million in net sales. Excluding the impact of foreign currency translation and acquisitions, price per pound increased as a result of the Company's strategy to improve product mix in the region. Foreign currency translation negatively impacted net sales by $0.4 million. USCAN gross profit was $19.7 million, an increase of $6.4 million from the same period last year. The benefits of recent acquisitions and related integration, along with improved mix on gross profit were partially offset by unfavorable foreign currency translation.

LATAM net sales for the quarter were $41.1 million, a decrease of $7.3 million compared with the prior-year period. Excluding the unfavorable impact of foreign currency translation, which decreased net sales by $5.6 million, average price per pound increased principally driven by improved product mix. LATAM gross profit was $7.1 million, a decrease of $0.8 million from the comparable period last year. The benefits of improved product mix were offset by unfavorable foreign currency translation of $0.9 million.

APAC net sales were $52.6 million, an increase of $4.2 million compared with the prior-year period. During the second quarter, the Compco acquisition contributed net sales of $2.4 million, which was offset by approximately $2.0 million negative impact of foreign currency translation. APAC gross profit was $7.4 million, an increase of $0.9 million compared with the prior-year period. Gross profit benefited from the positive contribution of the Compco acquisition and increased organic volume.

Working Capital/Cash Flow
Cash provided from operations was $1.1 million in the six months ended February 28, 2015, an improvement of $9.8 million. Working capital days for the second quarter of fiscal 2015 were approximately the same as the prior year quarter.

Capital expenditures for the quarter were $21.2 million, compared with $16.5 million for the prior-year quarter. These expenditures were primarily related to the regular and ongoing investment in the Company's global manufacturing facilities and technical innovation and collaboration centers. During the six months ended February 28, 2015, the Company declared and paid quarterly cash dividends of $0.41 per common share. The total amount of these dividends was $12.0 million.

Joseph Levanduski, chief financial officer, said, "Our balance sheet remains strong and continues to be a strength of this Company. We will maintain discipline as we approach the upcoming close of the previously announced Citadel acquisition, which is on track to close in the third quarter of fiscal 2015. Our operational performance remains strong even after giving full effect to the rapid foreign exchange impact."

Year-to-Date Results
Net sales for the six months ended February 28, 2015 were $1,157.3 million, compared with $1,173.9 million for the same period last year. Incremental net sales for the six months from the Company's recent acquisitions contributed $95.9 million. Foreign currency translation unfavorably impacted net sales for the six months ended February 28, 2015 by $85.9 million.

Operating Income before certain items for the six months ended February 28, 2015 was $47.0 million, an increase of $3.2 million compared to the same prior year period.

Business Outlook
Rzepka said, "We are again committed, despite the foreign currencies declines, to realize another year of earnings per share growth from our 2014 adjusted results of $2.36 per diluted share. On March 23, we revised our previously announced fiscal 2015 full-year adjusted net income guidance to $2.50 to $2.55 per diluted share, which is a 6 percent to 8 percent improvement in earnings despite the negative impact of the continuing steep decline of the euro and other foreign currencies. This revision in full-year guidance does not include any contributions from the pending acquisition of Citadel."

Conference Call on the Web
A live Internet broadcast of A. Schulman's conference call regarding fiscal 2015 second-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Tuesday, April 7, 2015, 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, segment operating income, operating income before 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 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 the integration thereof, 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;
  • operating problems with our information systems as a result of system security failures such as viruses, cyber-attacks or other causes;
  • our ability to consummate the Citadel acquisition and the timing of the closing thereof for any reason, whether or not the fault of the Company;
  • the failure to obtain the necessary financing in connection with the Citadel acquisition for any reason, whether or not the fault of the Company;
  • the impact of the indebtedness incurred to finance the Citadel acquisition;
  • integration of the business of 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;
  • transaction and acquisition-related costs incurred in connection with the Citadel acquisition and related transactions; and
  • substantial time devoted by management to the integration after the closing of the Citadel acquisition.

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 February 28,


Six months ended February 28,


2015


2014


2015


2014


Unaudited

(In thousands, except per share data)

Net sales

$

542,295



$

588,508



$

1,157,348



$

1,173,905


Cost of sales

464,221



514,209



992,430



1,020,498


Selling, general and administrative expenses

70,093



58,713



130,640



116,111


Restructuring expense

2,662



1,727



7,881



3,505


Asset impairment



104





104


Operating income

5,319



13,755



26,397



33,687


Interest expense

2,311



2,488



4,670



4,679


Interest income

(66)



(81)



(161)



(143)


Foreign currency transaction (gains) losses

1,141



1,466



2,240



2,148


Other (income) expense, net

(245)



(193)



(404)



(271)


Gain on early extinguishment of debt

(1,290)





(1,290)




Income (loss) from continuing operations before taxes

3,468



10,075



21,342



27,274


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

3,971



3,427



8,457



7,995


Income (loss) from continuing operations

(503)



6,648



12,885



19,279


Income (loss) from discontinued operations, net of tax

(58)



347



(68)



3,002


Net income (loss)

(561)



6,995



12,817



22,281


Noncontrolling interests

(327)



(136)



(547)



(351)


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

$

(888)



$

6,859



$

12,270



$

21,930










Weighted-average number of shares outstanding:








Basic

29,138



29,059



29,078



29,038


Diluted

29,138



29,277



29,538



29,240










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







Income (loss) from continuing operations

$

(0.03)



$

0.23



$

0.42



$

0.65


Income (loss) from discontinued operations



0.01





0.11


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

$

(0.03)



$

0.24



$

0.42



$

0.76










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







Income (loss) from continuing operations

$

(0.03)



$

0.22



$

0.42



$

0.65


Income (loss) from discontinued operations



0.01





0.10


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

$

(0.03)



$

0.23



$

0.42



$

0.75










Cash dividends per common share

$

0.205



$

0.200



$

0.410



$

0.400


 

 


A. SCHULMAN, INC.

CONSOLIDATED BALANCE SHEETS






February 28,
 2015


August 31,
 2014


Unaudited

(In thousands)

ASSETS

Current assets:




Cash and cash equivalents

$

91,872



$

135,493


Accounts receivable, less allowance for doubtful accounts of $9,520 at February 28, 2015 and
$10,844 at August 31, 2014

354,257



384,444


Inventories

257,464



292,141


Prepaid expenses and other current assets

40,399



40,473


Total current assets

743,992



852,551


Property, plant and equipment, at cost:




Land and improvements

25,883



28,439


Buildings and leasehold improvements

144,951



160,858


Machinery and equipment

373,938



398,563


Furniture and fixtures

32,020



41,255


Construction in progress

20,523



16,718


Gross property, plant and equipment

597,315



645,833


Accumulated depreciation

357,346



391,912


Net property, plant and equipment

239,969



253,921


Deferred charges and other noncurrent assets

73,211



65,079


Goodwill

192,940



202,299


Intangible assets, net

123,932



138,634


Total assets

$

1,374,044



$

1,512,484


LIABILITIES AND EQUITY

Current liabilities:




Accounts payable

$

251,091



$

314,957


U.S. and foreign income taxes payable

4,426



6,385


Accrued payroll, taxes and related benefits

42,232



54,199


Other accrued liabilities

46,067



46,054


Short-term debt

24,197



31,748


Total current liabilities

368,013



453,343


Long-term debt

365,406



339,546


Pension plans

112,501



129,949


Deferred income taxes

22,003



23,826


Other long-term liabilities

26,485



29,369


Total liabilities

894,408



976,033


Commitments and contingencies




Stockholders' equity:




Common stock, $1 par value, authorized - 75,000 shares, issued - 48,367 shares at February 28,
2015 and 48,185 shares at August 31, 2014

48,367



48,185


Additional paid-in capital

272,934



268,545


Accumulated other comprehensive income (loss)

(73,801)



(16,691)


Retained earnings

607,162



606,898


Treasury stock, at cost, 19,079 shares at February 28, 2015 and 18,973 shares at August 31, 2014

(383,170)



(379,894)


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

471,492



527,043


Noncontrolling interests

8,144



9,408


Total equity

479,636



536,451


Total liabilities and equity

$

1,374,044



$

1,512,484


 

 

A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS




Six months ended February 28,


2015


2014


Unaudited

(In thousands)

Operating from continuing and discontinued operations:




Net income

$

12,817



$

22,281


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




Depreciation

17,990



16,419


Amortization

8,271



6,669


Deferred tax provision (benefit)

(96)



(2,895)


Pension, postretirement benefits and other compensation

6,173



4,494


Restricted stock compensation - CEO transition costs, net of cash

4,789




Asset impairment



104


Gain on sale of assets from discontinued operations



(3,331)


Changes in assets and liabilities, net of acquisitions:




Accounts receivable

(4,197)



(21,283)


Inventories

3,838



(13,107)


Accounts payable

(38,126)



(15,534)


Income taxes

(1,210)



229


Accrued payroll and other accrued liabilities

(3,159)



375


Other assets and long-term liabilities

(6,003)



(3,100)


Net cash provided from (used in) operating activities

1,087



(8,679)


Investing from continuing and discontinued operations:




Expenditures for property, plant and equipment

(21,238)



(16,541)


Investment in equity investees

(12,456)




Proceeds from the sale of assets

1,366



4,738


Business acquisitions, net of cash

(6,698)



(115,624)


Net cash provided from (used in) investing activities

(39,026)



(127,427)


Financing from continuing and discontinued operations:




Cash dividends paid

(12,006)



(11,777)


Increase (decrease) in short-term debt

(3,415)



2,469


Borrowings on long-term debt

122,330



686,955


Repayments on long-term debt including current portion

(91,381)



(583,914)


Payment of debt issuance costs



(1,782)


Noncontrolling interests' contributions (distributions)

(1,750)




Issuances of stock, common and treasury

132



276


Redemptions of common stock

(4,999)



(361)


Purchases of treasury stock

(3,335)



(1,116)


Net cash provided from (used in) financing activities

5,576



90,750


Effect of exchange rate changes on cash

(11,258)



1,355


Net increase (decrease) in cash and cash equivalents

(43,621)



(44,001)


Cash and cash equivalents at beginning of period

135,493



134,054


Cash and cash equivalents at end of period

$

91,872



$

90,053


 

 

A. SCHULMAN, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures






















Three months ended February 28, 2015


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


$

464,221



14.4

%


$

70,093



$

2,662



$



$

5,319



$

0.010



$

3,971



$

(888)



$

(0.03)


Certain items:





















Costs related to acquisitions and integrations (1)


(65)





(3,272)







3,337





202



3,135



0.11


Restructuring and related costs (2)


(298)





(819)



(2,662)





3,779





519



3,260



0.11


CEO transition costs (3)






(6,167)







6,167







6,167



0.21


Asset write-downs (4)


(298)











298







298



0.01


Gain on early extinguishment of debt (6)
















(428)



(863)



(0.03)


Tax benefits (charges)
















(283)



283



0.01


Loss (income) from discontinued operations


















58




Total certain items


(661)



0.1

%


(10,258)



(2,662)





13,581



0.026



10



12,338



0.42


As Adjusted


$

463,560



14.5

%


$

59,835



$



$



$

18,900



$

0.037



$

3,981



$

11,450



$

0.39























Percentage of Revenue






11.0

%






3.5

%






2.1

%
























Three months ended February 28, 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


$

514,209



12.6

%


$

58,713



$

1,727



$

104



$

13,755



$

0.027



$

3,427



$

6,859



$

0.23


Certain items:





















Costs related to acquisitions and integrations (1)


(34)





(1,817)







1,851





30



1,821



0.06


Restructuring and related costs (2)


(137)





(928)



(1,727)





2,792





279



2,513



0.09


Asset write-downs (4)










(104)



104





34



70




Inventory step-up (5)


(782)











782







782



0.03


Tax benefits (charges)
















426



(426)



(0.01)


Loss (income) from discontinued operations


















(347)



(0.01)


Total certain items


(953)



0.2

%


(2,745)



(1,727)



(104)



5,529



0.012



769



4,413



0.16


As Adjusted


$

513,256



12.8

%


$

55,968



$



$



$

19,284



$

0.039



$

4,196



$

11,272



$

0.39























Percentage of Revenue






9.5

%






3.3

%






1.9

%



 

 

Six months ended February 28, 2015


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


$

992,430



14.2

%


$

130,640



$

7,881



$



$

26,397



$

0.025



$

8,457



$

12,270



$

0.42


Certain items:





















Costs related to acquisitions and integrations (1)


(115)





(4,274)







4,389





278



4,111



0.14


Restructuring and related costs (2)


(298)





(1,180)



(7,881)





9,359





2,002



7,357



0.24


CEO transition costs (3)






(6,167)







6,167







6,167



0.21


Asset write-downs (4)


(298)











298







298



0.01


Inventory step-up (5)


(341)











341





102



239



0.01


Gain on early extinguishment of debt (6)
















(428)



(863)



(0.03)


Tax benefits (charges)
















(282)



282



0.01


Loss (income) from discontinued operations


















68




Total certain items


(1,052)



0.1

%


(11,621)



(7,881)





20,554



0.019



1,672



17,659



0.59


As Adjusted


$

991,378



14.3

%


$

119,019



$



$



$

46,951



$

0.044



$

10,129



$

29,929



$

1.01























Percentage of Revenue






10.3

%






4.1

%






2.6

%
























Six months ended February 28, 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


$

1,020,498



13.1

%


$

116,111



$

3,505



$

104



$

33,687



$

0.034



$

7,995



$

21,930



$

0.75


Certain items:





















Costs related to acquisitions and integrations (1)


(34)





(2,453)







2,487





125



2,370



0.08


Restructuring and related costs (2)


(500)





(2,159)



(3,505)





6,164





601



5,852



0.20


Asset write-downs (4)


(108)









(104)



212





34



178



0.01


Inventory step-up (5)


(1,199)











1,199





98



1,101



0.04


Tax benefits (charges)
















427



(427)



(0.02)


Loss (income) from discontinued operations


















(3,002)



(0.10)


Total certain items


(1,841)



0.1

%


(4,612)



(3,505)



(104)



10,062



0.010



1,285



6,072



0.21


As Adjusted


$

1,018,657



13.2

%


$

111,499



$



$



$

43,749



$

0.044



$

9,280



$

28,002



$

0.96























Percentage of Revenue






9.5

%






3.7

%






2.4

%




























1 - 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, one-time bonuses and post-acquisition severance separate from a formal restructuring plan.


2 - Restructuring and related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs and charges related
to the reorganization of the legal entity structure.


3 - CEO transition costs represent a one-time charge for the modification and accelerated vesting upon retirement of the outstanding equity compensation awards granted to Joseph M. Gingo in
2013 and 2014.


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


5 - Inventory step-up costs represent the amortization of adjustments to fair value of inventory acquired for acquisition purchase accounting.


6 - Represents a pre-tax net gain of $1.3 million on the early extinguishment of debt.

 

 

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION








Net Sales


Pounds Sold



Three months ended February 28,

EMEA


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

29,235


$

35,913


$

(6,678)


(18.6)%


10,770


11,641


(871)


(7.5)

%

Masterbatch Solutions


99,779


105,625


(5,846)


(5.5)%


93,068


83,217


9,851


11.8

%

Engineered Plastics


89,695


115,132


(25,437)


(22.1)%


63,491


69,605


(6,114)


(8.8)

%

Specialty Powders


35,286


43,368


(8,082)


(18.6)%


43,603


42,469


1,134


2.7

%

Distribution Services


61,151


82,986


(21,835)


(26.3)%


97,926


99,284


(1,358)


(1.4)

%

Total EMEA


$

315,146


$

383,024


$

(67,878)


(17.7)%


308,858


306,216


2,642


0.9

%




















Net Sales


Pounds Sold



Three months ended February 28,

USCAN


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

10,093


$

8,417


$

1,676


19.9

%


3,395


2,849


546


19.2

%

Masterbatch Solutions


39,101


30,397


8,704


28.6

%


50,533


44,923


5,610


12.5

%

Engineered Plastics


44,894


31,827


13,067


41.1

%


27,972


20,439


7,533


36.9

%

Specialty Powders


22,390


21,041


1,349


6.4

%


33,678


34,619


(941)


(2.7)

%

Distribution Services


16,956


17,010


(54)


(0.3)

%


17,891


17,734


157


0.9

%

Total USCAN


$

133,434


$

108,692


$

24,742


22.8

%


133,469


120,564


12,905


10.7

%




















Net Sales


Pounds Sold



Three months ended February 28,

LATAM


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

1,236


$

864


$

372


43.1

%


504


344


160


46.5

%

Masterbatch Solutions


20,247


23,667


(3,420)


(14.5)

%


14,544


15,737


(1,193)


(7.6)

%

Engineered Plastics


10,775


12,197


(1,422)


(11.7)

%


7,892


8,638


(746)


(8.6)

%

Specialty Powders


8,875


11,679


(2,804)


(24.0)

%


7,453


10,951


(3,498)


(31.9)

%

Distribution Services





N/A





N/A

Total LATAM


$

41,133


$

48,407


$

(7,274)


(15.0)

%


30,393


35,670


(5,277)


(14.8)

%




















Net Sales


Pounds Sold



Three months ended February 28,

APAC


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

2,702


$

571


$

2,131


373.2

%


1,823


429


1,394


324.9

%

Masterbatch Solutions


19,324


19,883


(559)


(2.8)

%


19,715


17,930


1,785


10.0

%

Engineered Plastics


27,466


23,884


3,582


15.0

%


19,426


16,013


3,413


21.3

%

Specialty Powders


2,682


3,776


(1,094)


(29.0)

%


2,776


3,461


(685)


(19.8)

%

Distribution Services


408


271


137


50.6

%


517


361


156


43.2

%

Total APAC


$

52,582


$

48,385


$

4,197


8.7

%


44,257


38,194


6,063


15.9

%



































 

 



Net Sales


Pounds Sold



Six months ended February 28,

EMEA


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

62,694



$

71,986



$

(9,292)



(12.9)

%


22,280



23,972



(1,692)



(7.1)%


Masterbatch Solutions


216,179



214,527



1,652



0.8

%


190,398



168,557



21,841



13.0

%

Engineered Plastics


198,968



237,348



(38,380)



(16.2)

%


135,181



144,762



(9,581)



(6.6)%


Specialty Powders


76,735



90,408



(13,673)



(15.1)

%


87,045



89,467



(2,422)



(2.7)%


Distribution Services


131,761



161,217



(29,456)



(18.3)

%


190,412



191,678



(1,266)



(0.7)%


Total EMEA


$

686,337



$

775,486



$

(89,149)



(11.5)

%


625,316



618,436



6,880



1.1

%




















Net Sales


Pounds Sold



Six months ended February 28,

USCAN


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

20,315



$

15,557



$

4,758



30.6

%


6,817



5,028



1,789



35.6

%

Masterbatch Solutions


82,437



61,095



21,342



34.9

%


108,693



92,564



16,129



17.4

%

Engineered Plastics


92,668



56,599



36,069



63.7

%


58,053



37,401



20,652



55.2

%

Specialty Powders


48,659



43,228



5,431



12.6

%


77,820



75,245



2,575



3.4

%

Distribution Services


34,062



28,154



5,908



21.0

%


35,050



30,110



4,940



16.4

%

Total USCAN


$

278,141



$

204,633



$

73,508



35.9

%


286,433



240,348



46,085



19.2

%




















Net Sales


Pounds Sold



Six months ended February 28,

LATAM


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

2,403



$

1,890



$

513



27.1

%


951



769



182



23.7

%

Masterbatch Solutions


42,202



46,445



(4,243)



(9.1)

%


29,527



30,624



(1,097)



(3.6)

%

Engineered Plastics


22,968



24,509



(1,541)



(6.3)

%


16,579



17,281



(702)



(4.1)

%

Specialty Powders


19,741



26,149



(6,408)



(24.5)

%


16,280



22,446



(6,166)



(27.5)

%

Distribution Services








N/A








N/A

Total LATAM


$

87,314



$

98,993



$

(11,679)



(11.8)

%


63,337



71,120



(7,783)



(10.9)%





















Net Sales


Pounds Sold



Six months ended February 28,

APAC


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

5,932



$

1,273



$

4,659



366.0

%


4,194



962



3,232



336.0

%

Masterbatch Solutions


39,663



40,409



(746)



(1.8)

%


38,568



35,473



3,095



8.7

%

Engineered Plastics


52,742



45,282



7,460



16.5

%


36,331



29,593



6,738



22.8

%

Specialty Powders


6,455



7,026



(571)



(8.1)

%


6,467



6,423



44



0.7

%

Distribution Services


764



803



(39)



(4.9)

%


927



1,005



(78)



(7.8)

%

Total APAC


$

105,556



$

94,793



$

10,763



11.4

%


86,487



73,456



13,031



17.7

%





































































 

 



Net Sales


Pounds Sold



Three months ended February 28,

Consolidated


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

43,266



$

45,765



$

(2,499)



(40.0)

%


16,492



15,263



1,229



(31.3)

%

Masterbatch Solutions


178,451



179,572



(1,121)



(34.0)

%


177,860



161,807



16,053



(27.1)

%

Engineered Plastics


172,830



183,040



(10,210)



(37.4)

%


118,781



114,695



4,086



(32.9)

%

Specialty Powders


69,233



79,864



(10,631)



(43.5)

%


87,510



91,500



(3,990)



(36.9)

%

Distribution Services


78,515



100,267



(21,752)



(49.0)

%


116,334



117,379



(1,045)



(38.6)

%

Total Consolidated


$

542,295



$

588,508



$

(46,213)



(39.4)

%


516,977



500,644



16,333



(33.0)

%

 



Net Sales


Pounds Sold



Six months ended February 28,

Consolidated


2015


2014


$ Change


% Change


2015


2014


Lbs. Change


% Change



(In thousands, except for %'s)

Custom Performance Color


$

91,344



$

90,706



$

638



(16.7)

%


34,242



30,731



3,511



(8.1)

%

Masterbatch Solutions


380,481



362,476



18,005



(11.6)

%


367,186



327,218



39,968



(6.1)

%

Engineered Plastics


367,346



363,738



3,608



(15.0)

%


246,144



229,037



17,107



(10.8)

%

Specialty Powders


151,590



166,811



(15,221)



(23.6)

%


187,612



193,581



(5,969)



(18.4)

%

Distribution Services


166,587



190,174



(23,587)



(26.8)

%


226,389



222,793



3,596



(18.3)

%

Total Consolidated


$

1,157,348



$

1,173,905



$

(16,557)



(17.2)

%


1,061,573



1,003,360



58,213



(12.3)

%

 

 

 

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION

(continued)








Three months ended February 28,


Six months ended February 28,



2015


2014


2015


2014



Unaudited

(In thousands, except for %'s)

Segment gross profit









EMEA


$

44,507



$

47,499



$

94,213



$

99,439


USCAN


19,745



13,370



44,374



27,120


LATAM


7,101



7,856



12,751



15,539


APAC


7,382



6,527



14,632



13,150


     Total segment gross profit


78,735



75,252



165,970



155,248


Inventory step-up




(782)



(341)



(1,199)


Accelerated depreciation, restructuring and related costs


(596)



(137)



(596)



(608)


Costs related to acquisitions and integrations


(65)



(34)



(115)



(34)


     Total gross profit


$

78,074



$

74,299



$

164,918



$

153,407











Segment operating income









EMEA


$

16,277



$

17,553



$

36,316



$

37,972


USCAN


5,925



2,839



17,317



6,699


LATAM


2,281



3,430



2,877



6,933


APAC


3,423



3,176



6,931



6,542


Total segment operating income


27,906



26,998



63,441



58,146


Corporate


(9,006)



(7,714)



(16,490)



(14,397)


Costs related to acquisitions and integrations


(3,337)



(1,851)



(4,389)



(2,487)


Restructuring and related costs


(3,779)



(2,792)



(9,359)



(6,164)


CEO transition costs


(6,167)





(6,167)




Asset impairment




(104)





(104)


Accelerated depreciation


(298)





(298)



(108)


Inventory step-up




(782)



(341)



(1,199)


Operating income


5,319



13,755



26,397



33,687


Interest expense, net


(2,245)



(2,407)



(4,509)



(4,536)


Foreign currency transaction gains (losses)


(1,141)



(1,466)



(2,240)



(2,148)


Other income (expense), net


245



193



404



271


Gain on early extinguishment of debt


1,290





1,290




Income from continuing operations before taxes


$

3,468



$

10,075



$

21,342



$

27,274











Capacity utilization









EMEA


74

%


77

%


81

%


82

%

USCAN


60

%


56

%


63

%


60

%

LATAM


64

%


74

%


68

%


80

%

APAC


62

%


72

%


64

%


70

%

Worldwide


67

%


69

%


71

%


73

%

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/a-schulman-reports-strong-operational-performance-in-fiscal-2015-second-quarter-300061516.html

SOURCE A. Schulman, Inc.

News Provided by Acquire Media


Close window | Back to top


Copyright 2017 A. Schulman, Inc.