MacDermid, Incorporated Announces Third Quarter Earnings; Third Quarter Diluted Earnings Per Share $0.42.DENVER Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- MacDermid, Incorporated a worldwide manufacturer of proprietary specialty chemical A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. products and materials for the electronics, metal finishing and graphic arts graphic arts: see aquatint; drawing; drypoint; engraving; etching; illustration; linoleum block printing; lithography; mezzotint; niello; pastel; poster; silk-screen printing; silhouette; silverpoint; sketch; stencil; woodcut and wood engraving. industries (NYSE NYSE See: New York Stock Exchange : MRD MRD or mrd abbr. minimal reacting dose ) today reported third quarter sales of $193.3 million, a 19.6% increase over the same period in 2004. The company's acquisition of Autotype (1) To automatically determine the type or configuration of a hardware model or elements within a program (variables). (2) To automatically fill in the remainder of a field with name, address, URL or any other data as soon as you have typed in the first several in June June: see month. of 2005 contributed $22.3 million to sales in the third quarter. Sales without Autotype increased $9.4 million, or 5.8% over last year. Sales for the nine months ended September September: see month. 30th were $541.8 million, or 10.9% above the same period in 2004. Autotype contributed $27.2 million to sales year to date. Year to date sales without Autotype would have increased $26.0 million or 5.3% over the prior year to date. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter of $0.42 were $0.03 more than the $0.39 per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in 2004. Earnings in the quarter were negatively impacted by acquisition and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. amounting to $0.04. Accordingly earnings before these charges would have been $0.46 per share, an increase of 17.9% over the third quarter last year. Diluted earnings per share for the nine-month period were $1.19 or $0.05 less than the same period last year. This was offset by the negative impacts of acquisition and restructuring charges of $0.05 per share and by the impact of the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement in the second quarter amounting to $0.06 per share. Owner Earnings In 1986, Warren Buffett detailed his valuation method. He stated that what he used to determine income was something called Owner Earnings. He defined owner earnings as follows: BOLD Brotherhood of Lost Dogs (band) BOLD Belgian Online Libraries Directory BOLD Bibliographic On-Line Display BOLD Benevolent Order of Law Dawgs BOLD Building Our Lives Drug-free in the attached Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Summary of Cash Flows), were $ 1.8 million for the quarter ended September 30 2005. Owner earnings were negatively impacted by the payment of the litigation settlement of $5.0 million that was accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. that was accrued as of the end of the second quarter and by the semi-annual payment of interest on our bonds amounting to $ 13.8 million. Advanced Surface Finishing Surface finishing is used to describe a number of industrial processes that can be applied to improve the surface of a manufactured item. The major reason to apply these processes is to improve appearance, improve adhesion or ink wettability, corrosion protection, wear resistance and (ASF See Windows Media formats. 1. (language) ASF - Algebraic Specification Language. 2. (body) ASF - Analytical Solutions Forum. ) segment Sales in our ASF segment for the quarter increased by $14.9 million or 15.5% compared with the same quarter last year, of which $10.7 million is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Autotype. Sales excluding Autotype increased $4.2 million, or 4.3%. Sales for the nine months ended September 30th increased $27.5 million, or 9.6% compared to the same nine-month period last year, of which $13.0 million was attributable to Autotype. Sales excluding Autotype increased $14.6 million or 5.1%. Gross profit for the quarter is down by 3.9 percentage points primarily due to the affect of the lower inherent gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of Autotype (2.2%), and increased raw material costs and higher overhead costs overhead costs see fixed costs. in percentage terms due in part to lower volumes in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The seasonal summer effect in Europe was particularly
pronounced this year.Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter was $16.9 million or 4.0% ahead of last year, Asia and Offshore Solutions increased and the Americas A·mer·i·cas , the See America. and Europe are down from last year. The decrease in the operating profit percentage from 16.9% to 15.2% is entirely attributable to the lower operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: as a percentage of sales at Autotype. For the nine-month period operating profit was $47.8 million or 2.2% ahead of last year, but down 1.1% as a percent of sales for the same reasons as for the quarter. Printing Solutions Segment The Printing Solutions business increased sales by $16.8 million, or 25.7% for the quarter, of which $11.5 million was attributable to Autotype. Sales excluding Autotype were up $5.3 million or 8.1%. Sales for the nine months increased by $25.7 million, or 12.7%, of which $14.3 million is attributable to Autotype. Sales year to date excluding Autotype increased $11.4 million, or 5.6%. Colorspan (ColorSpan Corporation, Minnetonka, MN, www.colorspan.com) A manufacturer of wide-format color printers. Founded in 1985 as LaserMaster Corporation, it was originally involved in high-resolution upgrades for LaserJet printers, followed by a line of laser printers and plain paper had another excellent quarter. MPS (MultiProcessing Specification) A specification from Intel for designing SMP-based PCs using its Pentium processors. It defines how memory and interrupts are shared. Europe was affected by the summer slow down and continued poor underlying performance. As a result a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). was announced during the quarter. The gross profit % is down 4.0 percentage points for the quarter and by 3.0 percentage points year to date. The decline is due in part to the inclusion of Autotype with its inherently lower gross profit percentage. Operating profit of $7.2 million is down 23.9% in the quarter as compared to last year due to restructuring charges in France of $ 0.7 million, increased selling, technical and R&D costs. Year to date operating profits were $24.4 million, or 24.7% less than last year due to $2.5 million in litigation settlement expenses from the second quarter, restructuring charges in France and increased selling, technical and R & D expenses. MPS France is consolidating its' manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. to improve profitability by moving one of three factories it operates in Europe. Autotype Autotype began reorganizing its operations to realize synergies brought about by the acquisition by announcing the closing of its' US plant, which will be merged into an existing MacDermid plant. Management continues to further plan for cost reducing synergies. Dan Leever Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "Overall the quarter was satisfactory. MPS North America stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. this quarter and we are hopeful we will grow from this base. In Europe, the summer effect, which always reduces our August revenues, was more pronounced than normal. We did not see the bounce back bounce v. bounced, bounc·ing, bounc·es v.intr. 1. To rebound after having struck an object or a surface. 2. in September that we usually do. The challenges in the US automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. are not helping ASF North America, but the Asia demand is still robust. We believe our momentum in ASF is building. Offshore Solutions and Colorspan continued their excellent performance. MacDermid Autotype is off to a poor start. Revenues and profits are already significantly behind our plan. However, we remain confident this business will provide the returns and growth opportunities we envisioned. We understand the business much better than we did before we acquired it, and are much more confident we have cost and synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. levers far beyond the planned levels. We will exercise the appropriate balance between short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. earnings and longer-term growth. Owner Earnings were below our expectations although the underlying working capital remains in control. Acquisition activity remains high. It is the company's intent to grow through acquisition in a responsible manner. Although there can be no assurance we will be successful in finding acquisition candidates that meet our criteria criteria (krītēr´ē  ),n. , we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op ." Note: Owner Earnings is calculated as Net Cash flows provided by operating activities (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). definition) less net capital expenditures. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become comprises Earnings before Interest, Taxation, Depreciation and Amortization. This press release and additional financial information together with our reconciliation of GAAP to Non-GAAP numbers are available on our website. Website: http://www.macdermid.com MacDermid, Incorporated NYSE - MRD CUSIP CUSIP See: Committee on Uniform Securities Identification Procedures CUSIP See Committee on Uniform Securities Identification Procedures. 554273 10 2 October October: see month. 31, 2005 This report and other Corporation reports and statements describe many of the positive factors affecting the Corporation's future business prospects. Investors should also be aware of factors that could have a negative impact on those prospects. These include political, economic or other conditions such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the business; competitive products, advertising, promotional and pricing activity; the degree of acceptance of new product introductions in the marketplace; technical difficulties which may arise with new product introductions; and the difficulty of forecasting sales at certain times in certain markets.
MacDermid, Incorporated
Condensed Consolidated Summary of Earnings
(Unaudited)
$ in thousands, except share and per share amounts
Three Months Ended Nine Months Ended
----------------------- -----------------------
Sept 30th Sept 30th Sept 30th Sept 30th
2005 2004 2005 2004
----------- ----------- ----------- -----------
Proprietary sales $182,445 $150,969 $511,903 $458,121
Other sales 10,815 10,616 29,885 30,529
----------- ----------- ----------- -----------
Total net sales $193,260 $161,585 $541,788 $488,650
----------- ----------- ----------- -----------
Gross margin 83,282 76,375 240,961 231,975
GM % 43.1% 47.3% 44.5% 47.5%
Selling, technical and
administrative 51,387 45,254 147,581 136,841
Research and
development 6,684 5,375 19,725 15,928
Restructuring/
Acquisition 1,077 0 1,462 0
----------- ----------- ----------- -----------
Operating profit 24,134 25,746 72,193 79,206
Other income
(expense), net 799 92 207 531
Interest (expense),
net (7,101) (7,287) (21,170) (22,542)
----------- ----------- ----------- -----------
Earnings before income
taxes 17,832 18,551 51,230 57,195
Income tax (expense) (4,915) (6,508) (14,600) (18,874)
----------- ----------- ----------- -----------
Net earnings $12,917 $12,043 $36,630 $38,321
=========== =========== =========== ===========
----------- ----------- ----------- -----------
Diluted earnings per
share $0.42 $0.39 $1.19 $1.24
=========== =========== =========== ===========
Diluted average common
shares outstanding 30,956,963 30,907,677 30,865,440 30,988,259
=========== =========== =========== ===========
MacDermid, Incorporated
Sales and Margins by Region
$ in thousands
Three Months Ended Nine Months Ended
------------------- -------------------
Sept 30th Sept 30th Sept 30th Sept 30th
2005 2004 2005 2004
--------- --------- --------- ---------
Americas
Total net sales $76,194 $65,801 $215,599 $200,418
Operating profit $10,398 $10,219 $26,812 $33,909
OP % 13.6% 15.5% 12.4% 16.9%
Europe
Total net sales $65,836 $56,877 $191,077 $177,445
Operating profit $3,235 $7,047 $19,455 $22,076
OP % 4.9% 12.4% 10.2% 12.4%
Asia
Total net sales $51,230 $38,907 $135,112 $110,787
Operating profit $10,501 $8,480 $25,926 $23,221
OP % 20.5% 21.8% 19.2% 21.0%
Consolidated Total
Total net sales $193,260 $161,585 $541,788 $488,650
Operating profit $24,134 $25,746 $72,193 $79,206
OP % 12.5% 15.9% 13.3% 16.2%
MacDermid, Incorporated
Sales and Margins by Group
$ in thousands
Three Months Ended Nine Months Ended
------------------- -------------------
Sept 30th Sept 30th Sept 30th Sept 30th
2005 2004 2005 2004
--------- --------- --------- ---------
Advanced Surface Finishing
Total net sales $111,003 $96,136 $313,476 $286,000
Operating profit $16,925 $16,276 $47,764 $46,742
OP % 15.2% 16.9% 15.2% 16.3%
Printing Solutions
Total net sales $82,257 $65,449 $228,312 $202,650
Operating profit $7,209 $9,470 $24,429 $32,464
OP % 8.8% 14.5% 10.7% 16.0%
Consolidated Total
Total net sales $193,260 $161,585 $541,788 $488,650
Operating profit $24,134 $25,746 $72,193 $79,206
OP % 12.5% 15.9% 13.3% 16.2%
MacDermid, Incorporated
Condensed Consolidated Balance Sheets
$ in thousands
Sept 30th Dec. 31st
2005 2004
----------- ---------
(Unaudited)
Cash and cash equivalents $60,307 $137,829
Accounts receivable, net 156,817 142,455
Inventories, net 96,655 80,445
Other current assets 31,274 28,486
----------- ---------
Current Assets 345,053 389,215
Property, plant & equipment, net 122,538 110,463
Goodwill 245,630 194,287
Intangibles 32,299 28,434
Other Assets 47,749 51,320
----------- ---------
Total assets $793,269 $773,719
=========== =========
Payables and accruals $126,022 $128,359
Short-term debt 3,554 753
----------- ---------
Current Liabilities 129,576 129,112
Long-term debt 301,288 301,077
Other long-term liabilities 37,369 39,499
----------- ---------
Total Liabilities 468,233 469,688
Shareholders' equity 325,036 304,031
----------- ---------
Total liabilities & shareholders' equity $793,269 $773,719
=========== =========
----------------------------------------------------------------------
Debt to total capital 48% 50%
----------------------------------------------------------------------
MacDermid, Incorporated
Condensed Consolidated Summary of Cash Flows
(Unaudited)
$ in thousands
Three Months Ended Nine Months Ended
----------------- ------------------
Sept Sept Sept Sept
30th 30th 30th 30th
2005 2004 2005 2004
-------- -------- --------- --------
Net earnings $12,917 $12,043 $36,630 $38,321
Depreciation 4,592 3,897 12,209 12,011
Amortization 1,008 708 2,796 2,159
Provision for bad debt 842 1,517 1,580 3,024
Stock compensation expense 1,177 1,351 5,227 4,383
Deferred Taxes (1,620) (1,559) (995) (1,431)
Restructuring Charges 1,077 - 1,463 -
Working capital changes (15,669) 5,021 (27,718) (1,359)
-------- -------- --------- --------
Cash from operations 4,324 22,978 31,192 57,108
Capital spending, net (2,517) (768) (9,565) (3,212)
-------- -------- --------- --------
Owner earnings** 1,807 22,210 21,627 53,896
Acquisition of business (3,883) - (93,153)
Dividends paid (1,827) (1,211) (4,858) (2,423)
Increase/(decrease) in debt (7,877) (261) 2,780 (1,001)
Treasury shares - - 33 31
Other 1,973 396 (3,951) 256
-------- -------- --------- --------
Increase/(decrease) in cash $(9,807) $21,134 $(77,522) $50,759
======== ======== ========= ========
----------------------------------------------------------------------
**Note: Pro forma owner earnings
adjusted for semi-annual
bond interest payments would
have been as follows: $6,900 $(6,900) $6,900 $6,900
$8,707 $15,310 $28,527 $60,796
======== ======== ========= ========
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
----------------------------------------------------------------------
Gross Profit Before Special Charges (a) (b)
----------------------------------------------------------------------
(In thousands) Three Months Ended
Dec-03 Mar-04 Jun-04 Sep-04
-------- -------- -------- ---------
-------- -------- -------- ---------
Net Sales as reported $162,106 $162,012 $165,053 $161,585
-------- -------- -------- ---------
Gross Profit as reported $74,363 $77,526 $78,074 $76,375
Add: Special Charges - - - -
-------- -------- -------- ---------
Gross Profit Before Special
Charges $74,363 $77,526 $78,074 $76,375
-------- -------- -------- ---------
GP % Before Special Charges 45.9% 47.9% 47.3% 47.3%
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating Profit Before Amortization and Special Charges (a) (b)
----------------------------------------------------------------------
(In thousands) Three Months Ended
Dec-03 Mar-04 Jun-04 Sep-04
-------- -------- -------- ---------
Net Sales per above $162,106 $162,012 $165,053 $161,585
-------- -------- -------- ---------
Earnings Before Interest and Taxes $27,689 $26,551 $27,348 $25,838
Add: Other (Income) Expense (1,142) 258 (697) (92)
Add: Special Charges - - - -
-------- -------- -------- ---------
Operating Profit Before Special
Charges $26,547 $26,809 $26,651 $25,746
======== ======== ======== =========
% OP Before Special Charges to Net
Sales 16.4% 16.5% 16.1% 15.9%
----------------------------------------------------------------------
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
----------------------------------------------------------------------
Gross Profit Before Special Charges (a) (b)
----------------------------------------------------------------------
(In thousands)
Dec-04 Mar-05 Jun-05 Sep-05
-------- -------- -------- ---------
-------- -------- -------- ---------
Net Sales as reported $172,135 $170,247 $178,281 $193,260
-------- -------- -------- ---------
Gross Profit as reported $81,266 $77,653 $80,026 $83,282
Add: Special Charges - - 117 418
-------- -------- -------- ---------
Gross Profit Before Special
Charges $81,266 $77,653 $80,143 $83,700
-------- -------- -------- ---------
GP % Before Special Charges 47.2% 45.6% 45.0% 43.3%
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating Profit Before Amortization and Special Charges (a) (b)
----------------------------------------------------------------------
(In thousands)
Dec-04 Mar-05 Jun-05 Sep-05
-------- -------- -------- ---------
Net Sales per above $172,135 $170,247 $178,281 $193,260
-------- -------- -------- ---------
Earnings Before Interest and Taxes $27,615 $24,481 $22,988 $24,536
Add: Other (Income) Expense (1,411) (30) 622 (799)
Add: Special Charges - - 503 1,495
-------- -------- -------- ---------
Operating Profit Before Special
Charges $26,204 $24,451 $24,113 $25,232
======== ======== ======== =========
% OP Before Special Charges to Net
Sales 15.2% 14.4% 13.5% 13.1%
----------------------------------------------------------------------
--------------------------------------------------------------------
Gross Profit Before Special Charges (a) (b)
------------------------------------------- Year Year
(In thousands) Ended Ended
Dec-03 Dec-04
-------- ---------
-------- ---------
Net Sales as reported $619,886 $660,785
-------- ---------
Gross Profit as reported $290,615 $313,241
Add: Special Charges - -
-------- ---------
Gross Profit Before Special Charges $290,615 $313,241
-------- ---------
GP % Before Special Charges 46.9% 47.4%
--------------------------------------------------------------------
--------------------------------------------------------------------
Operating Profit Before Amortization and Special
Charges (a) (b)
---------------- Year Year
(In thousands) Ended Ended
Dec-03 Dec-04
-------- ---------
Net Sales per above $619,886 $660,785
-------- ---------
Earnings Before Interest and Taxes $103,464 $107,352
Add: Other (Income) Expense (4,314) (1,942)
Add: Special Charges - -
-------- ---------
Operating Profit Before Special Charges $99,150 $105,410
======== =========
% OP Before Special Charges to Net Sales 16.0% 16.0%
--------------------------------------------------------------------
(a) as a result of the Company's sale of Eurocir in Q4 2003, all
applicable historical figures have been modified to exclude the
results now reflected as Discontinued Operations.
(b) "Gross Profit Before Special Charges" and "Operating Profit
Special Charges" are not intended to represent Net Earnings as
defined by Generally Accepted Accounting Principles. These
measurements should not be used as an alternative to Net Earnings
as an indicator of operating performance and may not be comparable
to similarly titled measures used by other entities. Management
believes that these measurements portray a meaningful measure of
past operating performance and believes these measurements play an
important factor toward the growth of shareholder value over time.
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
----------------------------------------------------------------------
EPS from Continuing Operations Before Special Charges & Stock
Compensation (a) (b)
-------------------------------------------------------------
(In thousands, except share and per share amounts)
Three Months Ended
Dec-03 Mar-04 Jun-04 Sep-04
--------------------------------------------
Net Income (Loss) as
reported $19,289 $12,893 $13,385 $12,043
Deduct: Income (Loss)
from Discontinued Ops,
net of income taxes 5,632 - - -
--------------------------------------------
Income (Loss) from
Continuing Operations 13,657 12,893 13,385 12,043
Change in accounting
method - - - -
SFAS 150 gain on stock
call option - - - -
Cost of sales impact of
acquisition inventory adj - - - -
Write-off of In process
R&D - - - -
Restructuring & Other
Charges
--------------------------------------------
Total Special Charges
(Income) - - - -
After Tax Effect of
Special Charges
(Income) - - - -
--------------------------------------------
Net Income from Continuing
Operations Before Tax
Effected Special Charges $13,657 $12,893 $13,385 $12,043
============================================
Stock Compensation
Expense 1,119 1,560 1,472 1,351
After Tax Effect
Stock Compensation
Expense 761 1,061 1,001 905
--------------------------------------------
Net Income from Continuing
Operations Before Tax
Effected Special Charges
& Stock Compensation $14,418 $13,954 $14,386 $12,948
============================================
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges $0.45 $0.42 $0.43 $0.39
============================================
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges and Stock
Compensation $0.47 $0.45 $0.46 $0.42
============================================
Diluted Average Common
Shares Outstanding 30,501,615 31,041,763 31,014,374 30,988,259
----------------------------------------------------------------------
----------------------------------------------------------------------
EBITDA from Continuing Operations Before Special Charges (a) (b)
----------------------------------------------------------------
(In thousands)
Three Months Ended
Dec-03 Mar-04 Jun-04 Sep-04
--------------------------------------------
Earnings Before Interest
and Taxes $27,689 $26,551 $27,348 $25,838
SFAS 150 gain on stock
call option - - - -
Cost of sales impact of
acquisition inventory adj - - - -
Write-off of In Process
R&D - - - -
Restructuring & Other
Charges
--------------------------------------------
Total Special Charges - - - -
Amortization 889 734 717 708
Depreciation 3,976 4,125 3,989 3,897
EBITDA from Continuing
Operations Before Special
Charges $32,554 $31,410 $32,054 $30,443
============================================
----------------------------------------------------------------------
----------------------------------------------------------------------
Owners Earnings (b)
-------------------
(In thousands)
Three Months Ended
Dec-03 Mar-04 Jun-04 Sep-04
--------------------------------------------
Net cash flow provided by
operating activities $29,158 $5,977 $28,153 $22,978
Capital expenditures, net 5,213 782 1,662 768
--------------------------------------------
Owner Earnings $23,945 $5,195 $26,491 $22,210
============================================
Adjustment for Bond
Interest assumed to be
paid quarterly
----------------------
Owner Earnings $23,945 $5,195 $26,491 $22,210
Assumed if Bond Interest
was paid quarterly (6,900) 6,900 (6,900) 6,900
--------------------------------------------
Adjusted Owner Earnings $17,045 $12,095 $19,591 $29,110
--------------------------============================================
----------------------------------------------------------------------
EPS from Continuing Operations Before Special Charges & Stock
Compensation (a) (b)
--------------------------------------------------------------
(In thousands, except share and per share amounts)
Three Months Ended
Dec-04 Mar-05 Jun-05 Sep-05
--------------------------------------------
Net Income (Loss) as
reported $14,903 $11,785 $11,928 $12,633
Deduct: Income (Loss)
from Discontinued Ops,
net of income taxes - - -
--------------------------------------------
Income (Loss) from
Continuing Operations 14,903 11,785 11,928 12,633
Change in accounting
method - -
SFAS 150 gain on stock
call option - -
Cost of sales impact of
acquisition inventory adj - 117 418
Write-off of In process
R&D - - 386
Restructuring & Other
Charges 1,077
--------------------------------------------
Total Special Charges
(Income) - - 503 1,495
After Tax Effect of
Special Charges
(Income) - - 357 1,069
--------------------------------------------
Net Income from
Continuing Operations
Before Tax Effected
Special Charges $14,903 $11,785 $12,285 $13,702
============================================
Stock Compensation
Expense 2,112 2,177 1,873 1,177
After Tax Effect
Stock Compensation
Expense 1,415 1,361 1,330 842
--------------------------------------------
Net Income from
Continuing Operations
Before Tax Effected
Special Charges & Stock
Compensation $16,318 $13,146 $13,615 $14,544
============================================
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges $0.48 $0.38 $0.40 $0.44
============================================
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges and Stock
Compensation $0.53 $0.43 $0.44 $0.47
============================================
Diluted Average Common
Shares Outstanding 30,794,808 30,809,620 30,787,829 30,865,440
----------------------------------------------------------------------
----------------------------------------------------------------------
EBITDA from Continuing Operations Before Special Charges (a) (b)
----------------------------------------------------------------
(In thousands)
Three Months Ended
Dec-04 Mar-05 Jun-05 Sep-05
--------------------------------------------
Earnings Before Interest
and Taxes $27,615 $24,481 $22,988 $24,536
SFAS 150 gain on stock
call option - - -
Cost of sales impact of
acquisition inventory adj - - 117 418
Write-off of In Process
R&D - - 386
Restructuring & Other
Charges 1,077
--------------------------------------------
Total Special Charges - - 503 1,495
Amortization 850 891 897 1,008
Depreciation 4,137 3,846 3,771 4,592
EBITDA from Continuing
Operations Before Special--------------------------------------------
Charges $32,602 $29,218 $28,159 $31,631
============================================
----------------------------------------------------------------------
----------------------------------------------------------------------
Owners Earnings (b)
-------------------
(In thousands)
Three Months Ended
Dec-04 Mar-05 Jun-05 Sep-05
--------------------------------------------
Net cash flow provided by
operating activities $28,169 $2,023 $24,845 $3,927
Capital expenditures, net 5,322 2,990 4,058 2,120
--------------------------------------------
Owner Earnings $22,847 ($967) $20,787 $1,807
============================================
Adjustment for Bond
Interest assumed to be
paid quarterly
----------------------
Owner Earnings $22,847 ($967) $20,787 $1,807
Assumed if Bond Interest
was paid quarterly (6,900) 6,900 (6,900) 6,900
--------------------------------------------
Adjusted Owner Earnings $15,947 $5,933 $13,887 $8,707
--------------------------============================================
---------------------------------------------------------------------
EPS from Continuing Operations Before Special Charges
& Stock Compensation (a) (b)
-----------------------------------------------------
(In thousands, except share and per share amounts)
Year Year
Ended Ended
Dec-03 Dec-04
----------------------
Net Income (Loss) as reported $56,426 $53,224
Deduct: Income (Loss) from Discontinued Ops,
net of income taxes 5,592 -
----------------------
Income (Loss) from Continuing Operations 50,834 53,224
Change in accounting method (1,014) -
SFAS 150 gain on stock call option (2,214) -
Cost of sales impact of acquisition inventory
adj - -
Write-off of In process R&D - -
Restructuring & Other Charges
----------------------
Total Special Charges (Income) (3,228) -
After Tax Effect of Special Charges
(Income) (2,520) -
----------------------
Net Income from Continuing Operations Before
Tax Effected Special Charges $48,314 $53,224
======================
Stock Compensation Expense 4,219 6,495
After Tax Effect Stock Compensation Expense 2,869 4,382
----------------------
Net Income from Continuing Operations Before
Tax Effected Special Charges & Stock
Compensation $51,183 $57,606
======================
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges $1.55 $1.72
======================
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation $1.63 $1.86
======================
Diluted Average Common Shares Outstanding 31,430,398 30,961,108
---------------------------------------------------------------------
---------------------------------------------------------------------
EBITDA from Continuing Operations Before Special Charges (a) (b)
----------------------------------------------------------------
(In thousands) Year Year
Ended Ended
Dec-03 Dec-04
----------------------
Earnings Before Interest and Taxes $103,464 $107,352
SFAS 150 gain on stock call option (2,214) -
Cost of sales impact of acquisition inventory
adj - -
Write-off of In Process R&D - -
Restructuring & Other Charges
----------------------
Total Special Charges (2,214) -
Amortization 3,301 3,009
Depreciation 15,793 16,148
EBITDA from Continuing Operations Before ----------------------
Special Charges $120,344 $126,509
======================
----------------------------------------------------------------------
----------------------------------------------------------------------
Owners Earnings (b)
--------------------
(In thousands) Year Year
Ended Ended
Dec-03 Dec-04
----------------------
Net cash flow provided by operating activities $91,417 $85,277
Capital expenditures, net 10,704 8,534
----------------------
Owner Earnings $80,713 $76,743
======================
Adjustment for Bond Interest assumed to be
paid quarterly
------------------------------------------
Owner Earnings $80,713 $76,743
Assumed if Bond Interest was paid quarterly - -
----------------------
Adjusted Owner Earnings $80,713 $76,743
-----------------------------------------------======================
(a) as a result of the Company's sale of Eurocir in Q4 2003, all
applicable historical figures have been modified to exclude the
results now reflected as Discontinued Operations.
(b) "EPS from Continuing Operations Before Special Charges and Stock
Compensation", "EBITDA from Continuing Operations Before Special
Charges" and "Owners Earnings" are not intended to represent Net
Earnings (loss) or Net Cash Flow From Operating Activities as
defined by Generally Accepted Accounting Principles. These
measurements should not be used as an alternative to Net Earnings
or Net Cash Flow From Operating Activities as an indicator of
operating performance and may not be comparable to similarly
titled measures used by other entities. Management believes that
these measurements portray a meaningful measure of past operating
performance and believes these measurements play an important
factor toward the growth of shareholder value over time.
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