A. Schulman (SLMNP) 8-K A. Schulman Reports Fiscal 2015 Third Quarter Results

Exhibit 99.1FOR IMMEDIATE RELEASE

A. SCHULMAN REPORTS FISCAL 2015 THIRD QUARTER RESULTS

• Adjusted operating income growth grew by 32.1%, excluding the impact of foreign currency, in the Company’s fiscal 2015 third quarter

• Quarterly cash flow from operating activities improved by 26% compared with the prior year period

• On June 1, the acquisition of HGGC Citadel Plastics Holdings, Inc. (“Citadel”), for approximately $800 million was completed; the transaction:

◦ Almost doubles U.S. revenue, thus balancing Company’s geographic footprint

◦ Provides a new growth platform with industry-leading, high-margin specialty engineered composites business

◦ Is expected to be accretive in the first 12 months of ownership

◦ Will achieve approximately $25 million in synergies within 18 months

• Fiscal 2015 adjusted net income guidance range updated to reflect the Citadel acquisition and related financing activities

AKRON, Ohio - July 6, 2015 - A. Schulman, Inc. (Nasdaq: SHLM) announced today earnings for the fiscal 2015 third quarter ended May 31, 2015.

Bernard Rzepka, president and chief executive officer, said, “I am excited to report another quarter of improved operating profitability at A. Schulman, a clear sign that our strategic initiatives to transform our Company into a specialty plastics materials leader are bearing fruit. In 2010 we set a challenging target of 6.2 cents of operating profit per pound by the end of fiscal 2015 to reflect our commitment to this transformational process. In the third quarter we achieved adjusted operating profit per pound of 6 cents, and if we held the Euro to USD currency rate at the same level that was in place when the target was established this metric would have been 7 cents. We continue to overcome the slow growth and foreign exchange environment by controlling what we can control and by focusing on our strategic initiatives, and as a result we were able to sequentially boost our gross margins across nearly every segment to deliver near record results. The steady performance improvement that we’ve accomplished this year, despite the many external challenges, gives us considerable confidence that our dedicated team will execute our strategy, deliver further profitable growth, and achieve our long term earnings goals.

“We are excited to have completed the acquisition of Citadel on June 1, and welcome their 1,200 talented associates to the A. Schulman team. This strategic acquisition greatly enhances our product scope, regional scale and efficiencies, and provides balance to our geographic footprint. With Citadel on board we are focused on leveraging the strength of the combined business, and expanding our growth potential,” added Rzepka.

Joseph Levanduski, executive vice president & chief financial officer, said, “We have put in place a new capital structure that provides flexibility, while taking advantage of the favorable conditions that currently exist in the financial markets. This structure puts us in a leverage environment that will be higher than we have experienced in the recent past, but we are confident in our ability to de-lever in a prudent and timely fashion. By combining two organizations that generate strong cash flow from operations, while driving synergies and executing our Smart Savings program, we will not only be able to de-lever to our stated goal of 2.5x net leverage within a reasonable period of time, but we will also be able to support our strategic and organic growth initiatives.”

Fiscal Third-Quarter Results

Consolidated net sales for the fiscal 2015 third quarter were $560.9 million, compared with $645.7 million in the same prior-year quarter. Of the $84.8 million change, foreign currency translation accounted for $91.4 million of the decrease. Net sales from plants acquired in 2014, which includes A. Schulman’s legacy volume consolidated during the integration process, contributed $33.9 million of revenue during the quarter. Adjusted gross margin in the third quarter as a percent of net sales improved to 16.2% compared with 14.3% in the prior-year period.

The Company reported a net loss from continuing operations of $0.34 per diluted share. On an adjusted basis, excluding financing, restructuring and acquisitions-related costs, the Company generated net income of $0.72 per diluted share.

Europe, Middle East and Africa (‘EMEA”) net sales were $326.3 million compared with $413.8 million in the same prior-year period. Excluding the unfavorable impact of foreign currency translation of $79.7 million, net sales declined by 1.9%, primarily due to lower volumes in the engineered plastics and distribution services product families, partially offset by double digit volume growth in the masterbatch solutions product family. EMEA adjusted gross profit was $51.7 million. Excluding the negative impact of foreign currency translation of $11.3 million, adjusted gross profit increased by $6.2 million, or 10.9%, primarily due to improved product mix as well as the incremental contribution of the Specialty Plastics acquisition.

Net sales for the U.S. and Canada (“USCAN”) were $137.1 million, an increase of 4.1% in the third quarter compared with the same prior-year period. The incremental net sales were partially offset by lower net sales of $11.6 million in the specialty powders product family as a result of weaker oilfield services demand. The Specialty Plastics acquisition contributed $19.6 million of net sales growth during the quarter. USCAN adjusted gross profit was $22.1 million, a decrease of $1.7 million from the same prior-year period. The benefits of the recent Specialty Plastics acquisition and related integration were more than offset by unfavorable product mix.

Latin America’s (“LATAM”) net sales for the quarter were $44.8 million, a decrease of $4.9 million compared with the same prior-year period. Excluding the unfavorable impact of foreign currency translation of $8.5 million, net sales increased 7.2%. LATAM adjusted gross profit was $9.3 million, an increase of $4.9 million or 108.5% from the comparable period last year primarily due to the benefits of improved product mix and operating cost.

Asia Pacific (“APAC”) net sales were $52.7 million, an increase of $2.2 million or 4.3% compared with the same prior-year period. Incremental sales from the 2014 Compco acquisition were offset by the negative impact from foreign currency translation. APAC adjusted gross profit was $7.8 million, an increase of $0.7 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 $56.3 million in the nine months ended May 31, 2015, an improvement of $21.2 million or 60.6% over the comparable prior year period. Working capital days decreased by one day to 59 days in the third quarter of fiscal 2015 versus the comparable period in the prior year, and representing an 8-day improvement from the end of the second quarter of fiscal 2015.

Capital expenditures for the nine months ended May 31, 2015 were $32.7 million compared with $24.1 million last year. These expenditures were primarily related to strategic investments in the Company's global manufacturing facilities and technical innovation and collaboration centers focused on organic growth and new product development. During the nine months ended May 31, 2015, the Company declared and paid quarterly cash dividends of $18.1 million, or $0.615 per common share consistent with its ongoing strategy of providing an attractive yield to shareholders in addition to share price appreciation.

Year-to-Date Results

Net sales for the nine months ended May 31, 2015 were $1.7 billion, compared with $1.8 billion for the same prior-year period. Of the $101.4 million decrease in net sales, foreign currency translation accounted for $177.3 million of this change. Acquisitions contributed $130.0 million in net sales during the nine month period.

Operating income was $49.7 million, a decrease of $9.4 million compared with the same prior-year period. Total operating income before certain items was $79.8 million, an increase of $7.6 million or 10.6% compared with last year. Excluding the negative impact of foreign currency translation, total operating income before certain items increased 23.5% versus the comparable period. The growth in total operating income before certain items included the contribution from recent acquisitions of $12.4 million and the strategic focus on improving operating profit per pound, partially offset by the negative impact of foreign currency translation of $9.3 million.

Citadel and Refinancing Actions

On June 1, 2015, A. Schulman completed the previously announced acquisition of HGGC Citadel Plastics Holdings, Inc. for approximately $800 million. The Company anticipates the transaction will be accretive in the first 12 months of ownership and expects to realize approximately $25 million in synergies within the next 18 months. The Company financed the acquisition, with a component of this financing occurring in the third quarter in anticipation of the June 1close. The third quarter of fiscal 2015 included interest expense of approximately $0.4 million or a $0.01 per diluted share impact resulting from the issuance of $375 million of Senior Notes. The cash raised during the third quarter from the Senior Notes is reflected as restricted cash on the Company’s balance sheet as of May 31, 2015.

Additionally, the Company elected to restructure its capital structure in tandem with this acquisition financing. As a component of this action, on May 4, 2015, the Company issued $125 million of convertible special stock bearing a 6% dividend rate. Earnings per diluted share for the third quarter of fiscal 2015 included $0.6 million of dividends or approximately $0.02 per diluted share impact related to the convertible special stock.

Business Outlook

Rzepka stated, “Our fiscal 2015 adjusted net income guidance previously provided of $2.50 to $2.55 per diluted share represented significant growth over our fiscal 2014 results, excluding any impact from the then pending acquisition of Citadel. While the Citadel acquisition has occurred, and related financing actions taken, it is important to take note that the previous guidance range is achievable excluding the dilution expected in our fourth quarter related to these strategic long-term actions.

“We believe that the fiscal 2015 dilution related to the Citadel acquisition, including the $0.01 per diluted share negative impact on our third quarter results, will be approximately $0.05 per diluted share. Additionally, the dividend on the convertible special stock will impact the calculation of diluted earnings per share by approximately $0.08 per share in fiscal 2015, including the $0.02 impact on our third quarter results,” he noted.

“The combination of our previous guidance, updated for the fiscal 2015 dilution from the Citadel acquisition and convertible special stock dividend results in our adjusted guidance range of $2.37 to $2.42 per diluted share.

“Our team is committed to profitable growth and achieving our fiscal 2018 targets. As we integrate Citadel, and meet or exceed our $25 million synergy target, we are confident that the accretive nature of this acquisition, combined with our operating income growth, will provide a significant return to our shareholders. We look forward to reporting our fiscal 2015 results, and providing fiscal 2016 earnings guidance, at the end of October. We are focused and committed to achieving our long-term strategic goals,” Rzepka added.

Conference Call on the Web

A live Internet broadcast of A. Schulman’s conference call regarding fiscal 2015 third-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Tuesday, July 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 5,000 people and has 60 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, net income per diluted share excluding certain items and adjusted EBITDA, 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, joint ventures and restructuring initiatives;

• escalation in the cost of providing employee health care and retirement benefits;

• 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;

• the impact of the indebtedness incurred to finance the transaction;

• 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 than anticipated;

• our ability to achieve the anticipated synergies, cost savings and other benefits from the acquisition of Citadel;

• transaction and acquisition-related costs incurred in connection with the acquisition of Citadel and related transactions; and

• substantial time devoted by management to the integration 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, as amended and superseded in part by the Company’s Current Report on Form 8-K filed on April 27, 2015. 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

Jennifer K. Beeman

Vice President, 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 May 31,						Nine months ended May 31,
	2015			2014			2015			2014
	Unaudited (In thousands, except per share data)
Net sales	$	560,858		$	645,735		$	1,718,206		$	1,819,640
Cost of sales	470,101			553,771			1,462,531			1,574,269
Selling, general and administrative expenses	64,842			65,536			195,482			181,647
Restructuring expense	2,649			1,078			10,530			4,583
Asset impairment	—			—			—			104
Operating income	23,266			25,350			49,663			59,037
Interest expense	2,618			1,433			7,288			6,112
Bridge financing fees	18,750			—			18,750			—
Foreign currency transaction (gains) losses	857			(28		)	3,097			2,120
Other (income) expense, net	(335		)	(64		)	(900		)	(478		)
Gain on early extinguishment of debt	—			—			(1,290		)	—
Income (loss) from continuing operations before taxes	1,376			24,009			22,718			51,283
Provision (benefit) for U.S. and foreign income taxes	10,344			4,662			18,801			12,657
Income (loss) from continuing operations	(8,968		)	19,347			3,917			38,626
Income (loss) from discontinued operations, net of tax	(18		)	(23		)	(86		)	2,979
Net income (loss)	(8,986		)	19,324			3,831			41,605
Noncontrolling interests	(343		)	(233		)	(890		)	(584		)
Net income (loss) attributable to A. Schulman, Inc.	(9,329		)	19,091			2,941			41,021
Convertible special stock dividends	(563		)	—			(563		)	—
Net income (loss) available to A. Schulman, Inc. common stockholders	$	(9,892	)	$	19,091		$	2,378		$	41,021
Weighted-average number of shares outstanding:
Basic	29,219			29,081			29,125			29,052
Diluted	29,219			29,375			29,547			29,300
Basic earnings per share available to A. Schulman, Inc. common stockholders
Income (loss) from continuing operations	$	(0.34	)	$	0.66		$	0.08		$	1.31
Income (loss) from discontinued operations	—			—			—			0.10
Net income (loss) available to A. Schulman, Inc. common stockholders	$	(0.34	)	$	0.66		$	0.08		$	1.41
Diluted earnings per share available to A. Schulman, Inc. common stockholders
Income (loss) from continuing operations	$	(0.34	)	$	0.65		$	0.08		$	1.30
Income (loss) from discontinued operations	—			—			—			0.10
Net income (loss) available to A. Schulman, Inc. common stockholders	$	(0.34	)	$	0.65		$	0.08		$	1.40
Cash dividends per common share	$	0.205		$	0.200		$	0.615		$	0.600

A. SCHULMAN, INC.

CONSOLIDATED BALANCE SHEETS

	May 31, 2015			August 31, 2014
	Unaudited (In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	107,043		$	135,493
Restricted cash	378,509			—
Accounts receivable, less allowance for doubtful accounts of $9,537 at May 31, 2015 and $10,844 at August 31, 2014	357,688			384,444
Inventories	270,227			292,141
Prepaid expenses and other current assets	38,867			40,473
Total current assets	1,152,334			852,551
Property, plant and equipment, at cost:
Land and improvements	25,568			28,439
Buildings and leasehold improvements	143,002			160,858
Machinery and equipment	372,030			398,563
Furniture and fixtures	31,896			41,255
Construction in progress	23,015			16,718
Gross property, plant and equipment	595,511			645,833
Accumulated depreciation	358,979			391,912
Net property, plant and equipment	236,532			253,921
Deferred charges and other noncurrent assets	83,149			65,079
Goodwill	191,489			202,299
Intangible assets, net	119,508			138,634
Total assets	$	1,783,012		$	1,512,484
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	293,203		$	314,957
U.S. and foreign income taxes payable	7,350			6,385
Accrued payroll, taxes and related benefits	46,513			54,199
Other accrued liabilities	78,558			46,054
Short-term debt	14,290			31,748
Total current liabilities	439,914			453,343
Long-term debt	607,585			339,546
Pension plans	110,498			129,949
Deferred income taxes	20,681			23,826
Other long-term liabilities	25,571			29,369
Total liabilities	1,204,249			976,033
Commitments and contingencies
Stockholders’ equity:
Common stock, $1 par value, authorized - 75,000 shares, issued - 48,367 shares at May 31, 2015 and 48,185 shares at August 31, 2014	48,367			48,185
Convertible special stock, no par value	120,296			—
Additional paid-in capital	274,138			268,545
Accumulated other comprehensive income (loss)	(81,097		)	(16,691		)
Retained earnings	591,781			606,898
Treasury stock, at cost, 19,078 shares at May 31, 2015 and 18,973 shares at August 31, 2014	(383,148		)	(379,894		)
Total A. Schulman, Inc.’s stockholders’ equity	570,337			527,043
Noncontrolling interests	8,426			9,408
Total equity	578,763			536,451
Total liabilities and equity	$	1,783,012		$	1,512,484

A. SCHULMAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine months ended May 31,
	2015			2014
	Unaudited (In thousands)
Operating from continuing and discontinued operations:
Net income	$	3,831		$	41,605
Adjustments to reconcile net income to net cash provided from (used in) operating activities:
Depreciation	26,481			24,751
Amortization	11,899			10,308
Bridge financing fees	18,750			—
Deferred tax provision (benefit)	(1,143		)	(3,182		)
Pension, postretirement benefits and other compensation	8,318			9,157
Restricted stock compensation - CEO transition costs, net of cash	4,789			—
Asset impairment	—			104
Gain on sale of assets from discontinued operations	—			(3,344		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(13,610		)	(26,048		)
Inventories	(13,309		)	(15,330		)
Accounts payable	9,599			2,847
Income taxes	2,598			204
Accrued payroll and other accrued liabilities	4,776			260
Other assets and long-term liabilities	(6,698		)	(6,296		)
Net cash provided from (used in) operating activities	56,281			35,036
Investing from continuing and discontinued operations:
Expenditures for property, plant and equipment	(32,662		)	(24,126		)
Investment in equity investees	(12,456		)	—
Proceeds from the sale of assets	1,411			5,255
Restricted cash	(3,509		)	—
Business acquisitions, net of cash	(6,698		)	(115,624		)
Net cash provided from (used in) investing activities	(53,914		)	(134,495		)
Financing from continuing and discontinued operations:
Cash dividends paid to common stockholders	(18,058		)	(17,717		)
Increase (decrease) in short-term debt	(12,995		)	3,747
Borrowings on long-term debt	255,196			703,141
Repayments on long-term debt including current portion	(353,647		)	(609,501		)
Payment of debt issuance costs	—			(1,782		)
Noncontrolling interests' contributions (distributions)	(1,750		)	—
Issuances of stock, common and treasury	231			403
Issuances of convertible special stock, net	120,296			—
Redemptions of common stock	(4,999		)	(361		)
Purchases of treasury stock	(3,335		)	(1,116		)
Net cash provided from (used in) financing activities	(19,061		)	76,814
Effect of exchange rate changes on cash	(11,756		)	(605		)
Net increase (decrease) in cash and cash equivalents	(28,450		)	(23,250		)
Cash and cash equivalents at beginning of period	135,493			134,054
Cash and cash equivalents at end of period	$	107,043		$	110,804
Non-cash Activity:
Senior Notes funding held in restricted cash	$	375,000		$	—
Unpaid debt issuance costs	$	11,116		$	—

A. SCHULMAN, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures

Three months ended May 31, 2015	Cost of Sales			Gross Margin		SG&A			Restructuring Expense			Operating Income			Operating Income per Pound		Non Operating (Income) Expense			Income Tax Expense (benefit)			Net Income Available to A. Schulman, Inc. Common Stockholders			Diluted EPS
	(In thousands, except for %'s, per pound and per share data)
As reported	$	470,101		16.2	%	$	64,842		$	2,649		$	23,266		$	0.043	$	21,890		$	10,344		$	(9,892	)	$	(0.34	)
Certain items:
Acquisition related interest expenses (1)	—					—			—			—					(19,134		)	—			19,134			0.66
Accelerated depreciation (5)	(29		)			—			—			29					—			—			29			—
Costs related to acquisitions and integrations (2)	(59		)			(3,531		)	—			3,590					—			29			3,561			0.12
Restructuring and related costs (3)	(49		)			(3,239		)	(2,649		)	5,937					—			1,144			4,793			0.16
Tax benefits (charges) (8)	—					—			—			—					—			(3,559		)	3,559			0.12
Loss (income) from discontinued operations	—					—			—			—					—			—			18			—
Total certain items	(137		)	—	%	(6,770		)	(2,649		)	9,556			0.017		(19,134		)	(2,386		)	31,094			1.06
As Adjusted	$	469,964		16.2	%	$	58,072		$	—		$	32,822		$	0.060	$	2,756		$	7,958		$	21,202		$	0.72
Percentage of Revenue						10.4		%				5.9		%									3.8		%
Effective Tax Rate																				26.5		%
Three months ended May 31, 2014	Cost of Sales			Gross Margin		SG&A			Restructuring Expense			Operating Income			Operating Income per Pound		Non Operating (Income) Expense			Income Tax Expense (benefit)			Net Income Available to A. Schulman, Inc. Common Stockholders			Diluted EPS
	(In thousands, except for %'s, per pound and per share data)
As reported	$	553,771		14.2	%	$	65,536		$	1,078		$	25,350		$	0.046	$	1,341		$	4,662		$	19,091		$	0.65
Certain items:
Costs related to acquisitions and integrations (2)	—					(888		)	—			888					—			16			872			0.03
Restructuring and related costs (3)	(149		)			(933		)	(1,078		)	2,160					—			320			1,840			0.06
Loss (income) from discontinued operations	—					—			—			—					—			—			23			—
Total certain items	(149		)	0.1	%	(1,821		)	(1,078		)	3,048			0.006		—			336			2,735			0.09
As Adjusted	$	553,622		14.3	%	$	63,715		$	—		$	28,398		$	0.052	$	1,341		$	4,998		$	21,826		$	0.74
Percentage of Revenue						9.9		%				4.4		%									3.4		%
Effective Tax Rate																				18.5		%

Nine months ended May 31, 2015	Cost of Sales			Gross Margin		SG&A			Restructuring Expense			Operating Income			Operating Income per Pound		Non Operating (Income) Expense			Income Tax Expense (benefit)			Net Income Available to A. Schulman, Inc. Common Stockholders			Diluted EPS
	(In thousands, except for %'s, per pound and per share data)
As reported	$	1,462,531		14.9	%	$	195,482		$	10,530		$	49,663		$	0.031	$	26,945		$	18,801		$	2,378		$	0.08
Certain items:
Acquisition related interest expenses (1)	—					—			—			—					(19,134		)	—			19,134			0.65
Accelerated depreciation (5)	(327		)			—			—			327					—			—			327			0.01
Costs related to acquisitions and integrations (2)	(174		)			(7,798		)	—			7,972					—			307			7,665			0.26
Restructuring and related costs (3)	(347		)			(4,426		)	(10,530		)	15,303					—			3,146			12,157			0.41
CEO transition costs (4)	—					(6,167		)	—			6,167					—			—			6,167			0.21
Inventory step-up (6)	(341		)			—			—			341					—			102			239			0.01
Gain on early extinguishment of debt (7)	—					—			—			—					1,290			(428		)	(862		)	(0.03		)
Tax benefits (charges) (8)	—					—			—			—					—			(3,841		)	3,841			0.13
Loss (income) from discontinued operations	—					—			—			—					—			—			86			—
Total certain items	(1,189		)	—	%	(18,391		)	(10,530		)	30,110			0.019		(17,844		)	(714		)	48,754			1.65
As Adjusted	$	1,461,342		14.9	%	$	177,091		$	—		$	79,773		$	0.050	$	9,101		$	18,087		$	51,132		$	1.73
Percentage of Revenue						10.3		%				4.6		%									3.0		%
Effective Tax Rate																				20.4		%
Nine months ended May 31, 2014	Cost of Sales			Gross Margin		SG&A			Restructuring Expense			Operating Income			Operating Income per Pound		Non Operating (Income) Expense			Income Tax Expense (benefit)			Net Income Available to A. Schulman, Inc. Common Stockholders			Diluted EPS
	(In thousands, except for %'s, per pound and per share data)
As reported	$	1,574,269		13.5	%	$	181,647		$	4,583		$	59,037		$	0.038	$	7,754		$	12,657		$	41,021		$	1.40
Certain items:
Costs related to acquisitions and integrations (2)	(34		)			(3,343		)	—			3,377					(8		)	141			3,244			0.11
Restructuring and related costs (3)	(649		)			(3,090		)	(4,583		)	8,322					(290		)	920			7,692			0.26
Asset write-downs (5)	(108		)			(104		)	—			212					—			34			178			0.01
Inventory step-up (6)	(1,199		)			—			—			1,199					—			98			1,101			0.04
Tax benefits (charges) (8)	—					—			—			—					—			427			(427		)	(0.02		)
Loss (income) from discontinued operations	—					—			—			—					—			—			(2,979		)	(0.10		)
Total certain items	(1,990		)	0.1	%	(6,537		)	(4,583		)	13,110			0.009		(298		)	1,620			8,809			0.30
As Adjusted	$	1,572,279		13.6	%	$	175,110		$	—		$	72,147		$	0.047	$	7,457		$	14,277		$	49,830		$	1.70
Percentage of Revenue						9.6		%				4.0		%									2.7		%
Effective Tax Rate																				17.9		%

1 - Primarily relates to $18.8 million in bridge financing fees.

2 - 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.

3 - 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.

4 - 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.

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

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

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

8 - Tax benefits (charges) represent the Company's quarterly non-GAAP tax based on the overall estimated annual non-GAAP effective tax rates.

A. SCHULMAN, INC.

ADJUSTED EBITDA RECONCILIATION

	Three months ended May 31,				Nine months ended May 31,
	2015		2014		2015		2014
	Unaudited (In thousands)
Net income available to A. Schulman, Inc. common stockholders, as adjusted (1)	$	21,202	$	21,826	$	51,132	$	49,830
Interest expense	2,618		1,433		7,288		6,112
Provision for U.S. and foreign income taxes, as adjusted	7,958		4,998		18,087		14,277
Depreciation	8,491		8,332		26,481		24,751
Amortization	3,628		3,639		11,899		10,308
EBITDA, as adjusted	$	43,897	$	40,228	$	114,887	$	105,278

1 - For a list of certain items to reconcile between "net income available to A. Schulman, Inc. common stockholders" and "net income available to A. Schulman, Inc. common stockholders, as adjusted", refer to the reconciliation of GAAP and non-GAAP financial measures.

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION

	Net Sales									Pounds Sold
	Three months ended May 31,
EMEA	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	30,475	$	39,505	$	(9,030	)	(22.9	)%	12,473	13,114	(641	)	(4.9	)%
Masterbatch Solutions	105,706		122,450		(16,744		)	(13.7	)%	105,809	94,228	11,581		12.3	%
Engineered Plastics	95,210		123,634		(28,424		)	(23.0	)%	71,923	77,649	(5,726	)	(7.4	)%
Specialty Powders	37,903		47,533		(9,630		)	(20.3	)%	46,997	47,193	(196	)	(0.4	)%
Distribution Services	56,961		80,666		(23,705		)	(29.4	)%	85,689	96,600	(10,911	)	(11.3	)%
Total EMEA	$	326,255	$	413,788	$	(87,533	)	(21.2	)%	322,891	328,784	(5,893	)	(1.8	)%
	Net Sales									Pounds Sold
	Three months ended May 31,
USCAN	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	11,209	$	8,817	$	2,392		27.1	%	3,925	2,619	1,306		49.9	%
Masterbatch Solutions	37,077		34,369		2,708			7.9	%	51,659	53,248	(1,589	)	(3.0	)%
Engineered Plastics	48,172		34,617		13,555			39.2	%	31,897	21,248	10,649		50.1	%
Specialty Powders	22,914		34,552		(11,638		)	(33.7	)%	33,563	44,139	(10,576	)	(24.0	)%
Distribution Services	17,708		19,290		(1,582		)	(8.2	)%	21,437	19,735	1,702		8.6	%
Total USCAN	$	137,080	$	131,645	$	5,435		4.1	%	142,481	140,989	1,492		1.1	%
	Net Sales									Pounds Sold
	Three months ended May 31,
LATAM	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	1,054	$	1,014	$	40		3.9	%	395	502	(107	)	(21.3	)%
Masterbatch Solutions	23,769		24,182		(413		)	(1.7	)%	16,789	15,648	1,141		7.3	%
Engineered Plastics	11,889		13,607		(1,718		)	(12.6	)%	9,196	9,614	(418	)	(4.3	)%
Specialty Powders	8,109		10,951		(2,842		)	(26.0	)%	7,177	9,270	(2,093	)	(22.6	)%
Distribution Services	—		—		—			N/A		—	—	—		N/A
Total LATAM	$	44,821	$	49,754	$	(4,933	)	(9.9	)%	33,557	35,034	(1,477	)	(4.2	)%
	Net Sales									Pounds Sold
	Three months ended May 31,
APAC	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	2,567	$	876	$	1,691		193.0	%	1,615	738	877		118.8	%
Masterbatch Solutions	21,375		21,272		103			0.5	%	22,331	19,651	2,680		13.6	%
Engineered Plastics	26,454		23,803		2,651			11.1	%	19,479	15,788	3,691		23.4	%
Specialty Powders	2,207		4,085		(1,878		)	(46.0	)%	2,617	3,651	(1,034	)	(28.3	)%
Distribution Services	99		512		(413		)	(80.7	)%	135	619	(484	)	(78.2	)%
Total APAC	$	52,702	$	50,548	$	2,154		4.3	%	46,177	40,447	5,730		14.2	%

	Net Sales									Pounds Sold
	Nine months ended May 31,
EMEA	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	93,168	$	111,490	$	(18,322	)	(16.4	)%	34,752	37,086	(2,334	)	(6.3	)%
Masterbatch Solutions	321,885		336,977		(15,092		)	(4.5	)%	296,207	262,785	33,422		12.7	%
Engineered Plastics	294,179		360,983		(66,804		)	(18.5	)%	207,104	222,411	(15,307	)	(6.9	)%
Specialty Powders	114,637		137,941		(23,304		)	(16.9	)%	134,043	136,660	(2,617	)	(1.9	)%
Distribution Services	188,723		241,883		(53,160		)	(22.0	)%	276,101	288,278	(12,177	)	(4.2	)%
Total EMEA	$	1,012,592	$	1,189,274	$	(176,682	)	(14.9	)%	948,207	947,220	987		0.1	%
	Net Sales									Pounds Sold
	Nine months ended May 31,
USCAN	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	31,524	$	24,374	$	7,150		29.3	%	10,742	7,647	3,095		40.5	%
Masterbatch Solutions	119,514		95,464		24,050			25.2	%	160,352	145,813	14,539		10.0	%
Engineered Plastics	140,840		91,215		49,625			54.4	%	89,950	58,648	31,302		53.4	%
Specialty Powders	71,574		77,780		(6,206		)	(8.0	)%	111,383	119,384	(8,001	)	(6.7	)%
Distribution Services	51,769		47,444		4,325			9.1	%	56,487	49,845	6,642		13.3	%
Total USCAN	$	415,221	$	336,277	$	78,944		23.5	%	428,914	381,337	47,577		12.5	%
	Net Sales									Pounds Sold
	Nine months ended May 31,
LATAM	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	3,457	$	2,905	$	552		19.0	%	1,347	1,271	76		6.0	%
Masterbatch Solutions	65,971		70,628		(4,657		)	(6.6	)%	46,316	46,272	44		0.1	%
Engineered Plastics	34,857		38,116		(3,259		)	(8.6	)%	25,775	26,894	(1,119	)	(4.2	)%
Specialty Powders	27,850		37,099		(9,249		)	(24.9	)%	23,456	31,717	(8,261	)	(26.0	)%
Distribution Services	—		—		—			N/A		—	—	—		N/A
Total LATAM	$	132,135	$	148,748	$	(16,613	)	(11.2	)%	96,894	106,154	(9,260	)	(8.7	)%
	Net Sales									Pounds Sold
	Nine months ended May 31,
APAC	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	8,500	$	2,149	$	6,351		295.5	%	5,809	1,700	4,109		241.7	%
Masterbatch Solutions	61,038		61,681		(643		)	(1.0	)%	60,900	55,126	5,774		10.5	%
Engineered Plastics	79,196		69,085		10,111			14.6	%	55,809	45,381	10,428		23.0	%
Specialty Powders	8,661		11,111		(2,450		)	(22.1	)%	9,084	10,074	(990	)	(9.8	)%
Distribution Services	863		1,315		(452		)	(34.4	)%	1,062	1,622	(560	)	(34.5	)%
Total APAC	$	158,258	$	145,341	$	12,917		8.9	%	132,664	113,903	18,761		16.5	%

	Net Sales									Pounds Sold
	Three months ended May 31,
Consolidated	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	45,305	$	50,212	$	(4,907	)	(9.8	)%	18,408	16,973	1,435		8.5	%
Masterbatch Solutions	187,927		202,273		(14,346		)	(7.1	)%	196,588	182,775	13,813		7.6	%
Engineered Plastics	181,725		195,661		(13,936		)	(7.1	)%	132,495	124,299	8,196		6.6	%
Specialty Powders	71,133		97,121		(25,988		)	(26.8	)%	90,354	104,253	(13,899	)	(13.3	)%
Distribution Services	74,768		100,468		(25,700		)	(25.6	)%	107,261	116,954	(9,693	)	(8.3	)%
Total Consolidated	$	560,858	$	645,735	$	(84,877	)	(13.1	)%	545,106	545,254	(148	)	—	%

	Net Sales									Pounds Sold
	Nine months ended May 31,
Consolidated	2015		2014		$ Change			% Change		2015	2014	Lbs. Change		% Change
	(In thousands, except for %'s)
Custom Performance Color	$	136,649	$	140,918	$	(4,269	)	(3.0	)%	52,650	47,704	4,946		10.4	%
Masterbatch Solutions	568,408		564,750		3,658			0.6	%	563,775	509,996	53,779		10.5	%
Engineered Plastics	549,072		559,399		(10,327		)	(1.8	)%	378,638	353,334	25,304		7.2	%
Specialty Powders	222,722		263,931		(41,209		)	(15.6	)%	277,966	297,835	(19,869	)	(6.7	)%
Distribution Services	241,355		290,642		(49,287		)	(17.0	)%	333,650	339,745	(6,095	)	(1.8	)%
Total Consolidated	$	1,718,206	$	1,819,640	$	(101,434	)	(5.6	)%	1,606,679	1,548,614	58,065		3.7	%

A. SCHULMAN, INC.

SUPPLEMENTAL SEGMENT INFORMATION

(continued)

	Three months ended May 31,						Nine months ended May 31,
	2015			2014			2015			2014
	Unaudited (In thousands, except for %'s)
Segment gross profit
EMEA	$	51,695		$	56,798		$	145,908		$	156,237
USCAN	22,104			23,791			66,478			50,911
LATAM	9,324			4,472			22,075			20,011
APAC	7,771			7,052			22,403			20,202
Total segment gross profit	90,894			92,113			256,864			247,361
Inventory step-up	—			—			(341		)	(1,199		)
Accelerated depreciation, restructuring and related costs	(78		)	(149		)	(674		)	(791		)
Costs related to acquisitions and integrations	(59		)	—			(174		)	—
Total gross profit	$	90,757		$	91,964		$	255,675		$	245,371
Segment operating income
EMEA	$	24,716		$	23,565		$	61,032		$	61,537
USCAN	7,982			11,906			25,299			18,603
LATAM	4,654			(649		)	7,531			6,286
APAC	3,972			3,328			10,903			9,870
Total segment operating income	41,324			38,150			104,765			96,296
Corporate	(8,502		)	(9,752		)	(24,992		)	(24,149		)
Costs related to acquisitions and integrations	(3,590		)	(888		)	(7,972		)	(3,377		)
Restructuring and related costs	(5,937		)	(2,160		)	(15,303		)	(8,322		)
CEO transition costs	—			—			(6,167		)	—
Asset impairment	—			—			—			(104		)
Accelerated depreciation	(29		)	—			(327		)	(108		)
Inventory step-up	—			—			(341		)	(1,199		)
Operating income	23,266			25,350			49,663			59,037
Interest expense	(2,618		)	(1,433		)	(7,288		)	(6,112		)
Bridge financing fees	(18,750		)	—			(18,750		)	—
Foreign currency transaction gains (losses)	(857		)	28			(3,097		)	(2,120		)
Other income (expense), net	335			64			900			478
Gain on early extinguishment of debt	—			—			1,290			—
Income from continuing operations before taxes	$	1,376		$	24,009		$	22,718		$	51,283
Capacity utilization
EMEA	90		%	87		%	84		%	84		%
USCAN	61		%	67		%	63		%	62		%
LATAM	76		%	68		%	71		%	76		%
APAC	67		%	73		%	65		%	71		%
Worldwide	76		%	77		%	73		%	74		%