Exhibit 99.1
FOR IMMEDIATE RELEASE
A. SCHULMAN REPORTS FISCAL 2015 FIRST-QUARTER RESULTS AND REAFFIRMS FULL YEAR GUIDANCE
| |
• | Net income from continuing operations for the first quarter of fiscal 2015 was $13.2 million, or $0.45 per diluted share, compared with $12.4 million, or $0.43 per diluted share, in the fiscal 2014 first quarter |
| |
• | Adjusted net income from continuing operations for the first quarter of fiscal 2015, excluding certain items, was $18.5 million, or $0.63 per diluted share a 10.5% improvement over the prior year |
| |
• | Company reaffirms its fiscal 2015 adjusted net income guidance of $2.60 to $2.65 per diluted share |
AKRON, Ohio - January 6, 2015 - A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal first quarter ended November 30, 2014.
Bernard Rzepka, President and Chief Executive Officer, said, “We are pleased by the good start to fiscal 2015. Our European team was able to maintain relatively flat results in a difficult economic landscape while our Americas and APAC regions more than offset the weakness in Europe. Our seasoned leaders will continue to take proactive steps such as the recently announced restructuring initiatives to drive efficiencies and help mitigate foreign exchange fluctuations. We had solid contributions from our recent acquisitions and continue to execute on our organic initiatives to create a strong and sustainable pipeline of innovative products and seek out value-added markets.”
Fiscal First-Quarter Results
Net sales for the fiscal 2015 first quarter were $615.1 million, an increase of 5% compared with $585.4 million in the prior-year quarter. Foreign currency translation negatively impacted net sales by $26.2 million. Excluding the impact of foreign currency translation, revenues would have increased by $55.9 million to $641.3 million for the quarter, up 9.5% over the prior year period. Gross margin, excluding certain items, in the first quarter as a percent of net sales improved to 14.2% compared with 13.7% in the prior year period.
Net sales for EMEA in the quarter were $371.2 million, a decrease of $21.3 million, or 5.4%, compared with the prior-year period. Foreign currency translation negatively impacted net sales by $21.5 million. The benefit from the Company’s recent Specialty Plastics acquisition was offset by a decline in organic sales across all product families. EMEA gross profit was $49.7 million, a decrease of $2.2 million compared with the same prior-year period. The decrease in the segment’s gross profit was mainly attributed to the unfavorable foreign currency translation impact of $3 million, lower organic volumes and higher pension expense of
$0.2 million which were only partially offset by the incremental contribution of the Specialty Plastics acquisition.
Net sales for the Americas were $190.9 million, an increase of 30.3% or $44.4 million in the first quarter compared with the prior-year period. Volume increased 19.8% or 30.7 million pounds during the quarter. The incremental contribution of the recent acquisitions accounted for virtually all of the change in both net sales and volume during the quarter, which was a direct result of the Company’s successful acquisition strategy. Foreign currency translation negatively impacted net sales by $4.2 million. Segment gross profit for the Americas was $30.3 million in the quarter, an increase of $8.8 million or 41% compared with the same period last year. The increase was primarily attributed to the contributions from recent acquisitions and improved product mix in the Company’s Specialty Powders product family.
Net sales for APAC were $53 million, an increase of 14.1% or $6.6 million in the first quarter compared with the prior-year period. Volume increased 19.8% or 7 million pounds during the quarter. During the quarter, the Compco acquisition in Australia contributed net sales and volume of $3.4 million and 2.3 million pounds, respectively. Excluding the Compco acquisition, organic volume increased across nearly all product families but was partially offset by decreased price per pound driven by competitive pricing pressures. Segment gross profit for APAC for the quarter increased $0.6 million or 9.5% compared with the prior-year period.
Working Capital/Cash Flow From Operations
Cash provided from operations was $10.3 million in the first quarter of fiscal 2015 compared with $9.8 million for the first quarter of fiscal 2014. Working capital was flat at 58 days at the end of the fiscal 2015 and 2014 first quarters.
Capital expenditures for the quarter were $10.3 million compared with $9.6 million for the prior-year quarter, and were primarily related to the regular and ongoing investment in the Company's global manufacturing facilities. During the first quarter of fiscal 2015, the Company declared and paid quarterly cash dividends for a total amount of $6.0 million and repurchased shares of common stock for a total cost of $3.3 million.
Business Outlook
Rzepka said, “Despite our double-digit earnings growth in the first quarter, we believe fiscal 2015 will be challenging. We are already seeing the adverse impact related to macro-economic conditions and currency fluctuations. However, we will continue to aggressively focus on our acquisition strategy, proactive restructuring actions, and marketing initiatives which are gaining good traction to overcome economic events which are out of our control. We are working hard to realize optimal synergies from our recent acquisitions; evaluating our footprint to match current demand, and efficiently managing our expenses. The focus we have on safety, smart sales and smart savings will help us to offset the slow global economic environment while allowing us to better serve our customers and position us for growth. As a result, we remain confident that our fiscal 2015 adjusted net income will be in the 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 2015 first-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Wednesday, January 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 43 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:
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• | 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; |
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• | the effectiveness of the Company’s efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques; |
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• | competitive factors, including intense price competition; |
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• | fluctuations in the value of currencies in major areas where the Company operates; |
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• | 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; |
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• | changes in customer demand and requirements; |
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• | 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; |
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• | escalation in the cost of providing employee health care; |
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• | uncertainties regarding the resolution of pending and future litigation and other claims; |
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• | the performance of the global automotive market as well as other markets served; |
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• | further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products; and |
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• | 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
Contact information:
Jennifer K. Beeman
Director of Corporate Communications & Investor Relations
A. Schulman, Inc.
3637 Ridgewood Road
Fairlawn, Ohio 44333
Tel: 330-668-7346
email: Jennifer.Beeman@aschulman.com
www.aschulman.com
A. SCHULMAN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
|
| | | | | | | |
| Three months ended November 30, |
| 2014 | | 2013 |
| Unaudited (In thousands, except per share data) |
Net sales | $ | 615,053 |
| | $ | 585,397 |
|
Cost of sales | 528,209 |
| | 506,289 |
|
Selling, general and administrative expenses | 60,547 |
| | 57,398 |
|
Restructuring expense | 5,219 |
| | 1,778 |
|
Operating income | 21,078 |
| | 19,932 |
|
Interest expense | 2,359 |
| | 2,191 |
|
Interest income | (95 | ) | | (62 | ) |
Foreign currency transaction (gains) losses | 1,099 |
| | 682 |
|
Other (income) expense, net | (159 | ) | | (78 | ) |
Income from continuing operations before taxes | 17,874 |
| | 17,199 |
|
Provision (benefit) for U.S. and foreign income taxes | 4,486 |
| | 4,568 |
|
Income from continuing operations | 13,388 |
| | 12,631 |
|
Income (loss) from discontinued operations, net of tax | (10 | ) | | 2,655 |
|
Net income | 13,378 |
| | 15,286 |
|
Noncontrolling interests | (220 | ) | | (215 | ) |
Net income attributable to A. Schulman, Inc. | $ | 13,158 |
| | $ | 15,071 |
|
| | | |
Weighted-average number of shares outstanding: | | | |
Basic | 29,017 |
| | 29,017 |
|
Diluted | 29,468 |
| | 29,205 |
|
| | | |
Basic earnings per share attributable to A. Schulman, Inc. | | | |
Income from continuing operations | $ | 0.45 |
| | $ | 0.43 |
|
Income (loss) from discontinued operations | — |
| | 0.09 |
|
Net income attributable to A. Schulman, Inc. | $ | 0.45 |
| | $ | 0.52 |
|
| | | |
Diluted earnings per share attributable to A. Schulman, Inc. | | | |
Income from continuing operations | $ | 0.45 |
| | $ | 0.43 |
|
Income (loss) from discontinued operations | — |
| | 0.09 |
|
Net income attributable to A. Schulman, Inc. | $ | 0.45 |
| | $ | 0.52 |
|
| | | |
Cash dividends per common share | $ | 0.205 |
| | $ | 0.200 |
|
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEETS
|
| | | | | | | |
| November 30, 2014 | | August 31, 2013 |
| Unaudited (In thousands) |
ASSETS |
Current assets: | | | |
Cash and cash equivalents | $ | 132,109 |
| | $ | 135,493 |
|
Accounts receivable, less allowance for doubtful accounts of $10,674 at November 30, 2014 and $10,844 at August 31, 2014 | 376,486 |
| | 384,444 |
|
Inventories | 296,539 |
| | 292,141 |
|
Prepaid expenses and other current assets | 47,591 |
| | 40,473 |
|
Total current assets | 852,725 |
| | 852,551 |
|
Property, plant and equipment, at cost: | | | |
Land and improvements | 27,155 |
| | 28,439 |
|
Buildings and leasehold improvements | 154,656 |
| | 160,858 |
|
Machinery and equipment | 394,884 |
| | 398,563 |
|
Furniture and fixtures | 39,785 |
| | 41,255 |
|
Construction in progress | 17,676 |
| | 16,718 |
|
Gross property, plant and equipment | 634,156 |
| | 645,833 |
|
Accumulated depreciation | 384,143 |
| | 391,912 |
|
Net property, plant and equipment | 250,013 |
| | 253,921 |
|
Deferred charges and other noncurrent assets | 63,376 |
| | 65,079 |
|
Goodwill | 198,649 |
| | 202,299 |
|
Intangible assets, net | 131,488 |
| | 138,634 |
|
Total assets | $ | 1,496,251 |
| | $ | 1,512,484 |
|
LIABILITIES AND EQUITY |
Current liabilities: | | | |
Accounts payable | $ | 314,315 |
| | $ | 314,957 |
|
U.S. and foreign income taxes payable | 6,075 |
| | 6,385 |
|
Accrued payroll, taxes and related benefits | 47,661 |
| | 54,199 |
|
Other accrued liabilities | 52,270 |
| | 46,054 |
|
Short-term debt | 32,012 |
| | 31,748 |
|
Total current liabilities | 452,333 |
| | 453,343 |
|
Long-term debt | 353,262 |
| | 339,546 |
|
Pension plans | 123,923 |
| | 129,949 |
|
Deferred income taxes | 23,222 |
| | 23,826 |
|
Other long-term liabilities | 28,704 |
| | 29,369 |
|
Total liabilities | 981,444 |
| | 976,033 |
|
Commitments and contingencies | | | |
Stockholders’ equity: | | | |
Common stock, $1 par value, authorized - 75,000 shares, issued - 48,186 shares at November 30, 2014 and 48,185 shares at August 31, 2014 | 48,186 |
| | 48,185 |
|
Additional paid-in capital | 269,818 |
| | 268,545 |
|
Accumulated other comprehensive income (loss) | (41,946 | ) | | (16,691 | ) |
Retained earnings | 614,094 |
| | 606,898 |
|
Treasury stock, at cost, 19,081 shares at November 30, 2014 and 18,973 shares at August 31, 2014 | (383,199 | ) | | (379,894 | ) |
Total A. Schulman, Inc.’s stockholders’ equity | 506,953 |
| | 527,043 |
|
Noncontrolling interests | 7,854 |
| | 9,408 |
|
Total equity | 514,807 |
| | 536,451 |
|
Total liabilities and equity | $ | 1,496,251 |
| | $ | 1,512,484 |
|
A. SCHULMAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| | | | | | | |
| Three months ended November 30, |
| 2014 | | 2013 |
| Unaudited (In thousands) |
Operating from continuing and discontinued operations: | | | |
Net income | 13,378 |
| | 15,286 |
|
Adjustments to reconcile net income to net cash provided from (used in) operating activities: | | | |
Depreciation | 8,963 |
| | 7,865 |
|
Amortization | 4,066 |
| | 3,244 |
|
Deferred tax provision (benefit) | 633 |
| | (693 | ) |
Pension, postretirement benefits and other compensation | 2,452 |
| | 2,550 |
|
Gain on sale of assets from discontinued operations | — |
| | (3,028 | ) |
Changes in assets and liabilities, net of acquisitions: | | | |
Accounts receivable | (4,731 | ) | | (12,681 | ) |
Inventories | (16,341 | ) | | (25,936 | ) |
Accounts payable | 8,200 |
| | 24,826 |
|
Income taxes | 463 |
| | 765 |
|
Accrued payroll and other accrued liabilities | 2,846 |
| | 1,239 |
|
Other assets and long-term liabilities | (9,670 | ) | | (3,618 | ) |
Net cash provided from (used in) operating activities | 10,259 |
| | 9,819 |
|
Investing from continuing and discontinued operations: | | | |
Expenditures for property, plant and equipment | (10,324 | ) | | (9,601 | ) |
Proceeds from the sale of assets | 904 |
| | 3,087 |
|
Business acquisitions, net of cash | (6,698 | ) | | (51,322 | ) |
Net cash provided from (used in) investing activities | (16,118 | ) | | (57,836 | ) |
Financing from continuing and discontinued operations: | | | |
Cash dividends paid | (5,962 | ) | | (5,915 | ) |
Increase (decrease) in short-term debt | 870 |
| | 3,294 |
|
Borrowings on long-term debt | 27,500 |
| | 457,000 |
|
Repayments on long-term debt including current portion | (10,915 | ) | | (444,649 | ) |
Payment of debt issuance costs | — |
| | (1,731 | ) |
Noncontrolling interests' contributions (distributions) | (1,750 | ) | | — |
|
Issuances of stock, common and treasury | 71 |
| | 211 |
|
Purchases of treasury stock | (3,335 | ) | | (1,116 | ) |
Net cash provided from (used in) financing activities | 6,479 |
| | 7,094 |
|
Effect of exchange rate changes on cash | (4,004 | ) | | 1,672 |
|
Net increase (decrease) in cash and cash equivalents | (3,384 | ) | | (39,251 | ) |
Cash and cash equivalents at beginning of period | 135,493 |
| | 134,054 |
|
Cash and cash equivalents at end of period | $ | 132,109 |
| | $ | 94,803 |
|
A. SCHULMAN, INC.
Reconciliation of GAAP and Non-GAAP Financial Measures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended November 30, 2014 | | Cost of Sales | | Gross margin | | SG&A | | Restructuring expense | | 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 | | $ | 528,209 |
| | 14.1 | % | | $ | 60,547 |
| | $ | 5,219 |
| | $ | 21,078 |
| | $ | 0.039 |
| | $ | 4,486 |
| | $ | 13,158 |
| | $ | 0.45 |
|
Certain items: | | | | | | | | | | | | | | | | | | |
Asset write-downs (1) | | — |
| | | | — |
| | — |
| | — |
| | | | — |
| | — |
| | — |
|
Costs related to acquisitions and integrations (2) | | (50 | ) | | | | (1,003 | ) | | — |
| | 1,053 |
| | | | 77 |
| | 976 |
| | 0.03 |
|
Restructuring and related costs (3) | | — |
| | | | (360 | ) | | (5,219 | ) | | 5,579 |
| | | | 1,483 |
| | 4,096 |
| | 0.14 |
|
Inventory step-up (4) | | (341 | ) | | | | — |
| | — |
| | 341 |
| | | | 102 |
| | 239 |
| | 0.01 |
|
Tax benefits (charges) | | — |
| | | | — |
| | — |
| | — |
| | | | — |
| | — |
| | — |
|
Loss (income) from discontinued operations | | | | | | | | | | | | | | | | 10 |
| | — |
|
Total certain items | | (391 | ) | | 0.1 | % | | (1,363 | ) | | (5,219 | ) | | 6,973 |
| | 0.013 |
| | 1,662 |
| | 5,321 |
| | 0.18 |
|
As Adjusted | | $ | 527,818 |
| | 14.2 | % | | $ | 59,184 |
| | $ | — |
| | $ | 28,051 |
| | $ | 0.052 |
| | $ | 6,148 |
| | $ | 18,479 |
| | $ | 0.63 |
|
| | | | | | | | | | | | | | | | | | |
Percentage of Revenue | | | | | | 9.6 | % | | | | 4.6 | % | | | | | | 3.0 | % | | |
| | | | | | | | | | | | | | | | | | |
Three months ended November 30, 2013 | | Cost of Sales | | Gross margin | | SG&A | | Restructuring expense | | 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 | | $ | 506,289 |
| | 13.5 | % | | $ | 57,398 |
| | $ | 1,778 |
| | $ | 19,932 |
| | $ | 0.040 |
| | $ | 4,568 |
| | $ | 15,071 |
| | $ | 0.52 |
|
Certain items: | | | | | | | | | | | | | | | | | | |
Asset write-downs (1) | | (108 | ) | | | | — |
| | — |
| | 108 |
| | | | 1 |
| | 107 |
| | — |
|
Costs related to acquisitions and integrations (2) | | — |
| | | | (635 | ) | | — |
| | 635 |
| | | | 89 |
| | 546 |
| | 0.02 |
|
Restructuring and related costs (3) | | (363 | ) | | | | (1,231 | ) | | (1,778 | ) | | 3,372 |
| | | | 322 |
| | 3,340 |
| | 0.11 |
|
Inventory step-up (4) | | (417 | ) | | | | — |
| | — |
| | 417 |
| | | | 98 |
| | 319 |
| | 0.01 |
|
Loss (income) from discontinued operations | | | | | | | | | | | | | | | | (2,655 | ) | | (0.09 | ) |
Total certain items | | (888 | ) | | 0.2 | % | | (1,866 | ) | | (1,778 | ) | | 4,532 |
| | 0.009 |
| | 510 |
| | 1,657 |
| | 0.05 |
|
As Adjusted | | $ | 505,401 |
| | 13.7 | % | | $ | 55,532 |
| | $ | — |
| | $ | 24,464 |
| | $ | 0.049 |
| | $ | 5,078 |
| | $ | 16,728 |
| | $ | 0.57 |
|
| | | | | | | | | | | | | | | | | | |
Percentage of Revenue | | | | | | 9.5 | % | | | | 4.2 | % | | | | | | 2.9 | % | | |
1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation.
2 - Costs related to acquisitions and integrations primarily include third party professional, legal and other expenses associated with successful and unsuccessful full or partial acquisition and divestiture/dissolution transactions. Additionally, costs related to acquisitions include certain employee-related expenses such as acquisition-related travel and integration costs.
3 - Restructuring 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.
4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting.
A. SCHULMAN, INC.
SUPPLEMENTAL SEGMENT INFORMATION
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net Sales | | Pounds Sold |
| | Three months ended November 30, |
EMEA | | 2014 | | 2013 | | $ Change | | % Change | | 2014 | | 2013 | | Lbs. Change | | % Change |
| | (In thousands, except for %'s) |
Custom Performance Color | | $ | 33,459 |
| | $ | 36,073 |
| | $ | (2,614 | ) | | (7.2 | )% | | 11,509 |
| | 12,331 |
| | (822 | ) | | (6.7 | )% |
Masterbatch Solutions | | 116,400 |
| | 108,901 |
| | 7,499 |
| | 6.9 | % | | 97,330 |
| | 85,340 |
| | 11,990 |
| | 14.0 | % |
Engineered Plastics | | 109,273 |
| | 122,216 |
| | (12,943 | ) | | (10.6 | )% | | 71,690 |
| | 75,157 |
| | (3,467 | ) | | (4.6 | )% |
Specialty powders | | 41,450 |
| | 47,040 |
| | (5,590 | ) | | (11.9 | )% | | 43,443 |
| | 46,998 |
| | (3,555 | ) | | (7.6 | )% |
Distribution Services | | 70,609 |
| | 78,232 |
| | (7,623 | ) | | (9.7 | )% | | 92,486 |
| | 92,394 |
| | 92 |
| | 0.1 | % |
Total EMEA | | $ | 371,191 |
| | $ | 392,462 |
| | $ | (21,271 | ) | | (5.4 | )% | | 316,458 |
| | 312,220 |
| | 4,238 |
| | 1.4 | % |
| | | | | | | | | | | | | | | | |
| | Net Sales | | Pounds Sold |
| | Three months ended November 30, |
Americas | | 2014 | | 2013 | | $ Change | | % Change | | 2014 | | 2013 | | Lbs. Change | | % Change |
| | (In thousands, except for %'s) |
Custom Performance Color | | $ | 11,388 |
| | $ | 8,166 |
| | $ | 3,222 |
| | 39.5 | % | | 3,869 |
| | 2,604 |
| | 1,265 |
| | 48.6 | % |
Masterbatch Solutions | | 65,291 |
| | 53,476 |
| | 11,815 |
| | 22.1 | % | | 73,143 |
| | 62,528 |
| | 10,615 |
| | 17.0 | % |
Engineered Plastics | | 59,967 |
| | 37,084 |
| | 22,883 |
| | 61.7 | % | | 38,769 |
| | 25,605 |
| | 13,164 |
| | 51.4 | % |
Specialty powders | | 37,135 |
| | 36,657 |
| | 478 |
| | 1.3 | % | | 52,968 |
| | 52,122 |
| | 846 |
| | 1.6 | % |
Distribution Services | | 17,107 |
| | 11,144 |
| | 5,963 |
| | 53.5 | % | | 17,159 |
| | 12,375 |
| | 4,784 |
| | 38.7 | % |
Total Americas | | $ | 190,888 |
| | $ | 146,527 |
| | $ | 44,361 |
| | 30.3 | % | | 185,908 |
| | 155,234 |
| | 30,674 |
| | 19.8 | % |
| | | | | | | | | | | | | | | | |
| | Net Sales | | Pounds Sold |
| | Three months ended November 30, |
APAC | | 2014 | | 2013 | | $ Change | | % Change | | 2014 | | 2013 | | Lbs. Change | | % Change |
| | (In thousands, except for %'s) |
Custom Performance Color | | $ | 3,231 |
| | $ | 702 |
| | $ | 2,529 |
| | 360.3 | % | | 2,371 |
| | 533 |
| | 1,838 |
| | 344.8 | % |
Masterbatch Solutions | | 20,339 |
| | 20,526 |
| | (187 | ) | | (0.9 | )% | | 18,853 |
| | 17,544 |
| | 1,309 |
| | 7.5 | % |
Engineered Plastics | | 25,276 |
| | 21,398 |
| | 3,878 |
| | 18.1 | % | | 16,905 |
| | 13,580 |
| | 3,325 |
| | 24.5 | % |
Specialty powders | | 3,772 |
| | 3,250 |
| | 522 |
| | 16.1 | % | | 3,691 |
| | 2,962 |
| | 729 |
| | 24.6 | % |
Distribution Services | | 356 |
| | 532 |
| | (176 | ) | | (33.1 | )% | | 410 |
| | 643 |
| | (233 | ) | | (36.2 | )% |
Total APAC | | $ | 52,974 |
| | $ | 46,408 |
| | $ | 6,566 |
| | 14.1 | % | | 42,230 |
| | 35,262 |
| | 6,968 |
| | 19.8 | % |
| | | | | | | | | | | | | | | | |
| | Net Sales | | Pounds Sold |
| | Three months ended November 30, |
Consolidated | | 2014 | | 2013 | | $ Change | | % Change | | 2014 | | 2013 | | Lbs. Change | | % Change |
| | (In thousands, except for %'s) |
Custom Performance Color | | $ | 48,078 |
| | $ | 44,941 |
| | $ | 3,137 |
| | 7.0 | % | | 17,749 |
| | 15,468 |
| | 2,281 |
| | 14.7 | % |
Masterbatch Solutions | | 202,030 |
| | 182,903 |
| | 19,127 |
| | 10.5 | % | | 189,326 |
| | 165,412 |
| | 23,914 |
| | 14.5 | % |
Engineered Plastics | | 194,516 |
| | 180,698 |
| | 13,818 |
| | 7.6 | % | | 127,364 |
| | 114,342 |
| | 13,022 |
| | 11.4 | % |
Specialty powders | | 82,357 |
| | 86,947 |
| | (4,590 | ) | | (5.3 | )% | | 100,102 |
| | 102,082 |
| | (1,980 | ) | | (1.9 | )% |
Distribution Services | | 88,072 |
| | 89,908 |
| | (1,836 | ) | | (2.0 | )% | | 110,055 |
| | 105,412 |
| | 4,643 |
| | 4.4 | % |
Total Consolidated | | $ | 615,053 |
| | $ | 585,397 |
| | $ | 29,656 |
| | 5.1 | % | | 544,596 |
| | 502,716 |
| | 41,880 |
| | 8.3 | % |
A. SCHULMAN, INC.
SUPPLEMENTAL SEGMENT INFORMATION
(continued)
|
| | | | | | | | |
| | Three months ended November 30, |
| | 2014 | | 2013 |
| | Unaudited (In thousands, except for %'s) |
Segment gross profit | | | | |
EMEA | | $ | 49,706 |
| | $ | 51,940 |
|
Americas | | 30,279 |
| | 21,433 |
|
APAC | | 7,250 |
| | 6,623 |
|
Total segment gross profit | | 87,235 |
| | 79,996 |
|
Inventory step-up | | (341 | ) | | (417 | ) |
Accelerated depreciation and restructuring related | | — |
| | (471 | ) |
Costs related to acquisitions and integrations | | (50 | ) | | — |
|
Total gross profit | | $ | 86,844 |
| | $ | 79,108 |
|
| | | | |
Segment operating income | | | | |
EMEA | | $ | 20,039 |
| | $ | 20,417 |
|
Americas | | 11,988 |
| | 7,364 |
|
APAC | | 3,508 |
| | 3,366 |
|
Total segment operating income | | 35,535 |
| | 31,147 |
|
Corporate | | (7,484 | ) | | (6,683 | ) |
Costs related to acquisitions and integrations | | (1,053 | ) | | (635 | ) |
Restructuring and related costs | | (5,579 | ) | | (3,372 | ) |
Accelerated depreciation | | — |
| | (108 | ) |
Inventory step-up | | (341 | ) | | (417 | ) |
Operating income | | 21,078 |
| | 19,932 |
|
Interest expense, net | | (2,264 | ) | | (2,129 | ) |
Foreign currency transaction gains (losses) | | (1,099 | ) | | (682 | ) |
Other income (expense), net | | 159 |
| | 78 |
|
Income from continuing operations before taxes | | $ | 17,874 |
| | $ | 17,199 |
|
| | | | |
Capacity utilization | | | | |
EMEA | | 87 | % | | 87 | % |
Americas | | 67 | % | | 67 | % |
APAC | | 65 | % | | 67 | % |
Worldwide | | 76 | % | | 77 | % |