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MacDermid Incorporated Newsline
Waterbury, CT 06720-9984
Tel (203) 575-5700
Offices located worldwide.
Earnings Announcement
WATERBURY, CONNECTICUT
April 26th, 2004
FOR IMMEDIATE RELEASE
First Quarter diluted earnings per share $0.42 up 17%
MacDermid, Incorporated, a worldwide manufacturer of proprietary specialty
chemical products and materials for the electronics, metal finishing and graphic
arts industries, today reports earnings for its first quarter ended March 31,
2004.
Quarter ended March 31, 2004 compared to March 31, 2003
Net earnings for the first quarter were $12.9 million or $0.42 per diluted share
compared to net earnings of $11.6 million or $0.36 per share in the prior year
quarter.
Proprietary sales of $152.2 million increased by 6% or $8.5 million, and total
sales were $162.0 million up $9.2 million or 6%. Favorable currency exchange
rates aided total sales by $11.1 million, proprietary sales by $9.8 million, and
net earnings by $0.9 million or $0.03 per share. Owner Earnings, a measure of
free cash flow, were $6.4 million. The March quarter included a semi-annual bond
interest payment of $13.8 million. Cash retained ended at $66.6 million.
Dan Leever Chairman and CEO stated "This quarter appears very similar to the
December 2003 quarter. The main difference was the acceleration in revenues as
the quarter progressed. Demand as the quarter ended was quite robust,
especially in our Advanced Surface Finishing business.
Cash generation and hence Owner Earnings of $6.4 million was not at the level we
have come to expect. Part of the shortfall is timing such as the
semi - annual bond interest payment and accelerating revenues during the
quarter. However, even after considering those items we were short of our
expectation. We are assured by our operating managers that we continue to stay
focused on cash flow generation, and that we will improve as the year continues.
If revenues are strong, any improvement we make will be offset, in part, by the
need to fund additional working capital. We certainly hope this is the case!
In any event, our drive for cash flow generation is derived from our desire to
create value, as opposed to necessity. With $66.6 million in cash and a ratio
of net debt to gross cash flow (EBITDA) of 1.9 to 1, we have ample liquidity.
We are in no rush to deploy the cash, although we do look at acquisition
candidates from time to time.
Whereas we are pleased with the performance of our Advanced Surface Finishing
Business, especially in the US and Asia, there are still significant soft spots.
The European economy continues to lag, and our Printing business is facing
difficult end markets. Given that we are not "firing on all cylinders" we are
pleased with the underlying performance and optimistic about the prospects for
the rest of the year."
Note:
Owner Earnings is calculated as Net Cash flows provided by operating activities
(GAAP definition) less net capital expenditures. EBITDA 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 554273 10 2
April 26,2004
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
--------------------
Mar. 31st Mar. 31st
2004 2003
-------------------- ------------
Proprietary sales $ 152,199 $ 143,673
Other sales 9,813 9,130
-------------------- ------------
Total net sales $ 162,012 $ 152,803
-------------------- ------------
Gross margin 77,526 72,542
GM % 47.9% 47.5%
Selling, technical and administrative expense 49,983 47,383
subtotal operating profit before amortization 27,543 25,159
OP % 17.0% 16.5%
- -------------------------------------------------- -------------------- ------------
Amortization 734 769
-------------------- ------------
Operating profit 26,809 24,390
Other (income) expense, net 258 (207)
Interest expense, net 7,591 7,438
-------------------- ------------
Earnings before income taxes and discontinued
operations 18,960 17,159
Income tax (expense) (6,067) (5,491)
-------------------- ------------
Earnings from continuing operations 12,893 11,668
Discontinued operations - (102)
-------------------- ------------
Net earnings $ 12,893 $ 11,566
==================== ============
Continuing operations per share $ 0.42 $ 0.36
Discontinued operations per share $ 0.00 ($0.00)
-------------------- ------------
Diluted earnings per share $ 0.42 $ 0.36
==================== ============
Diluted average common shares outstanding 31,041,763 32,467,172
==================== ============
MacDermid, Incorporated
Sales and Margins by Region
in thousands
Three Months Ended
-----------------------------
Mar. 31st Mar. 31st
2004 2003
----------------------------- -----------
Americas
Total net sales. . . . . . . . . . . . $ 65,676 $ 68,517
Operating profit before amortization . $ 12,206 $ 10,906
OP % . . . . . . . . . . . . . . . . . 18.6% 15.9%
Europe
Total net sales. . . . . . . . . . . . $ 61,789 $ 54,837
Operating profit before amortization . $ 8,083 $ 8,196
OP % . . . . . . . . . . . . . . . . . 13.1% 14.9%
Asia
Total net sales. . . . . . . . . . . . $ 34,547 $ 29,449
Operating profit before amortization . $ 7,254 $ 6,057
OP % . . . . . . . . . . . . . . . . . 21.0% 20.6%
Consolidated Total
Total net sales. . . . . . . . . . . . $ 162,012 $ 152,803
Operating profit before amortization . $ 27,543 $ 25,159
OP % . . . . . . . . . . . . . . . . . 17.0% 16.5%
MacDermid, Incorporated
Sales and Margins by Group
in thousands
Three Months Ended
------------------
Mar. 31st Mar. 31st
2004 2003
----------------------------- -----------
Advanced Surface Finishing
Total net sales. . . . . . . . . . . . $ 93,488 $ 84,970
Operating profit before amortization . $ 15,415 $ 12,900
OP % . . . . . . . . . . . . . . . . . 16.5% 15.2%
Printing Solutions
Total net sales. . . . . . . . . . . . $ 68,524 $ 67,833
Operating profit before amortization . $ 12,128 $ 12,259
OP % . . . . . . . . . . . . . . . . . 17.7% 18.1%
Consolidated Total
Total net sales. . . . . . . . . . . . $ 162,012 $ 152,803
Operating profit before amortization . $ 27,543 $ 25,159
OP % . . . . . . . . . . . . . . . . . 17.0% 16.5%
MacDermid, Incorporated
Condensed Consolidated Balance Sheets
in thousands
Mar. 31st Dec. 31st
2004 2003
------------ -----------
(Unaudited)
Cash and cash equivalents . . . . . . . . $ 66,559 $ 61,294
Accounts receivable, net. . . . . . . . . 143,794 137,149
Inventories, net. . . . . . . . . . . . . 79,367 75,775
Other current assets. . . . . . . . . . . 29,914 31,097
------------ -----------
319,634 305,315
Property, plant & equipment, net. . . . . 110,380 113,642
Goodwill. . . . . . . . . . . . . . . . . 194,200 194,200
Intangibles . . . . . . . . . . . . . . . 29,634 30,061
Other assets, net . . . . . . . . . . . . 53,438 54,017
------------ -----------
Total assets. . . . . . . . . . . . . . . $ 707,286 $ 697,235
============ ===========
Payables and accruals . . . . . . . . . . $ 120,096 $ 124,125
Short-term debt . . . . . . . . . . . . . 1,155 1,498
Long-term debt. . . . . . . . . . . . . . 301,251 301,203
Other long-term liabilities . . . . . . . 31,846 31,397
Shareholders' equity. . . . . . . . . . . 252,938 239,012
------------ -----------
Total liabilities & shareholders' equity. $ 707,286 $ 697,235
============ ===========
Debt to total capital . . . . . . . . . . 54% 56%
- ----------------------------------------- ------------ -----------
MacDermid, Incorporated
Condensed Consolidated Summary of Cash Flows
(Unaudited)
in thousands
Three Months Ended
--------------------
Mar. 31st Mar. 31st
2004 2003
-------------------- -----------
Net earnings $ 12,893 $ 11,566
Earnings (loss) from discontinued operations - (102)
-------------------- -----------
Earnings from continuing operations 12,893 11,668
Depreciation 4,125 3,941
Amortization 734 769
Provision for bad debt 599 1,720
Stock compensation expense 1,560 1,031
Deferred taxes (149) -
Working capital changes (12,573) (1,961)
Discontinued operations - 2,229
-------------------- -----------
Cash from operations 7,189 19,397
Capital spending, net (782) (979)
-------------------- -----------
Owner earnings** 6,407 18,418
Dividends to shareholders (1,212) (646)
Increase/(decrease) in debt (322) (3,570)
Treasury shares 31 50
Other 361 363
-------------------- -----------
Increase/(decrease) in cash $ 5,265 $ 14,615
==================== ===========
**Note: Pro forma owner earnings
adjusted for semi-annual bond interest
payments would have been as follows: $ 13,307 $ 25,318
==================== ===========
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
Gross Profit Before Special Charges (a) (b)
- ------------------------------------------------
(In thousands) Three Months Ended
--------------------
June 02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03
--------- --------- -------------------- --------- --------- ---------
Net Sales as reported. . . . . . . . . . . . . . $155,244 $151,430 $ 156,905 $152,803 $155,320 $149,658
--------- --------- -------------------- --------- --------- ---------
Gross Profit as reported . . . . . . . . . . . . $ 72,848 $ 69,067 $ 65,620 $ 72,542 $ 73,793 $ 69,917
Add: Special Charges . . . . . . . . . . . . . . - - 3,211 - - -
--------- --------- -------------------- --------- --------- ---------
Gross Profit Before Special Charges. . . . . . . $ 72,848 $ 69,067 $ 68,831 $ 72,542 $ 73,793 $ 69,917
--------- --------- -------------------- --------- --------- ---------
GP % Before Special Charges. . . . . . . . . . . 46.9% 45.6% 43.9% 47.5% 47.5% 46.7%
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
Gross Profit Before Special Charges (a) (b) Year Year
- ------------------------------------------------
(In thousands) Ended Ended
Dec-03 Mar-04 Dec 31-02 Dec 31-03
--------- --------- ----------- -----------
Net Sales as reported. . . . . . . . . . . . . . $162,105 $162,012 $ 611,490 $ 619,886
--------- --------- ----------- -----------
Gross Profit as reported . . . . . . . . . . . . $ 74,363 $ 77,526 $ 274,478 $ 290,615
Add: Special Charges . . . . . . . . . . . . . . - - 3,211 -
---------
Gross Profit Before Special Charges. . . . . . . $ 74,363 $ 77,526 $ 277,689 $ 290,615
--------- --------- ----------- -----------
GP % Before Special Charges. . . . . . . . . . . 45.9% 47.9% 45.4% 46.9%
<FN>
(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 Before Amortization and 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
Operating Profit Before Amortization and Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands) Three Months Ended
--------------------
June 02 Sep-02 Dec-02 Mar-03 Jun-03
--------- --------- -------------------- --------- ---------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $155,244 $151,430 $ 156,905 $152,803 $155,320
--------- --------- -------------------- --------- ---------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 21,435 $ 20,944 $ 19,489 $ 24,597 $ 25,566
Add: Amortization. . . . . . . . . . . . . . . . . . . . . . . . 1,570 1,557 1,528 769 851
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . 354 1,187 930 (207) (132)
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - - 6,177 - -
Operating Profit Before Amortization &
--------- --------- -------------------- --------- ---------
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $ 23,359 $ 23,688 $ 28,124 $ 25,159 $ 26,285
========= ========= ==================== ========= =========
% OP Before Amortization & Special
Charges to Net Sales . . . . . . . . . . . . . . . . . . . . . 15.0% 15.6% 17.9% 16.5% 16.9%
MacDermid, Inc.
Regulation G: GAAP to Non-GAAP Reconciliation
- -----------------------------------------------
Operating Profit Before Amortization and Special Charges (a) (b) Year Year
- ----------------------------------------------------------------
(In thousands) Ended Ended
Sep-03 Dec-03 Mar-04 Dec 31-02 Dec 31-03
--------- --------- --------- ----------- -----------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $149,658 $162,105 $162,012 $ 611,490 $ 619,886
--------- --------- --------- ----------- -----------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 25,611 $ 27,690 $ 26,551 $ 81,482 $ 103,464
Add: Amortization. . . . . . . . . . . . . . . . . . . . . . . . 792 889 734 6,222 3,301
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . (2,833) (1,142) 258 2,651 (4,314)
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - - - 6,177 -
Operating Profit Before Amortization &
--------- --------- --------- ----------- -----------
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $ 23,570 $ 27,437 $ 27,543 $ 96,532 $ 102,451
========= ========= ========= =========== ===========
% OP Before Amortization & Special
Charges to Net Sales . . . . . . . . . . . . . . . . . . . . . 15.7% 16.9% 17.0% 15.8% 16.5%
<FN>
(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 Before Amortization and 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
----------- ------------ ------------
June-02 Sep-02 Dec-02 Mar-03 Jun-03
----------- ----------- ------------ ------------ ------------
Net Income (Loss) as reported . . . . . . . . . . $ 9,673 $ 8,664 ($16,321) $ 11,566 $ 12,130
Deduct: Income (Loss) from Discontinued Ops,
net of income taxes. . . . . . . . 388 90 (22,853) (102) (4)
----------- ----------- ------------ ------------ ------------
Income (Loss) from Continuing Operations. . . . . 9,285 8,574 6,532 11,668 12,134
Change in accounting method . . . . . . . . . . . - - - - -
SFAS 150 gain on stock call option. . . . . . . . - - - - -
Impairment - SFAS 142 . . . . . . . . . . . . . . - - 983 - -
Asset Writedown - SFAS 144. . . . . . . . . . . . - - - - -
Restructuring & Other Charges . . . . . . . . . . - - 1,983 - -
Other Charges to Cost of Sales. . . . . . . . . . - - 3,211 - -
----------- ----------- ------------ ------------ ------------
Total Special Charges (Income). . . . . . . . - - 6,177 - -
After Tax Effect of Special Charges (Income). - - 4,200 - -
----------- ----------- ------------ ------------ ------------
Net Income from Continuing Operations Before
Tax Effected Special Charges . . . . . . . . . $ 9,285 $ 8,574 $ 10,732 $ 11,668 $ 12,134
=========== =========== ============ ============ ============
Stock Compensation Expense. . . . . . . . . . 815 599 1,002 1,031 1,154
After Tax Effect Stock Compensation Expense . 530 389 651 701 785
----------- ----------- ------------ ------------ ------------
Net Income from Continuing Operations Before Tax
Effected Special Charges & Stock Compensation . . $ 9,815 $ 8,963 $ 11,383 $ 12,369 $ 12,919
=========== =========== ============ ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges . . . . . . $ 0.29 $ 0.26 $ 0.33 $ 0.36 $ 0.38
=========== =========== ============ ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation . . . . . . . . . . . . . . . . . $ 0.30 $ 0.28 $ 0.35 $ 0.38 $ 0.41
=========== =========== ============ ============ ============
Diluted Average Common Shares Outstanding . . . . 32,514,702 32,480,682 32,234,427 32,467,172 31,720,959
- ------------------------------------------------- ----------- ----------- ------------ ------------ ------------
Year Year
Ended Ended
Sep-03 Dec-03 Mar-04 Dec-02 Dec-03
------------ ----------- ----------- ------------ ------------
Net Income (Loss) as reported . . . . . . . . . . $ 13,441 $ 19,290 $ 12,893 $ 9,349 $ 56,427
Deduct: Income (Loss) from Discontinued Ops,
net of income taxes. . . . . . . . 66 5,632 - (22,128) 5,592
------------ ----------- ----------- ------------ ------------
Income (Loss) from Continuing Operations. . . . . 13,375 13,658 12,893 31,477 50,835
Change in accounting method . . . . . . . . . . . (1,014) - - - (1,014)
SFAS 150 gain on stock call option. . . . . . . . (2,214) - - - (2,214)
Impairment - SFAS 142 . . . . . . . . . . . . . . - - - 983 -
Asset Writedown - SFAS 144. . . . . . . . . . . . - - - - -
Restructuring & Other Charges . . . . . . . . . . - - - 1,983 -
Other Charges to Cost of Sales. . . . . . . . . . - - - 3,211 -
------------ ------------
------------ ----------- ----------- ------------ ------------
Total Special Charges (Income). . . . . . . . (3,228) - - 6,177 (3,228)
After Tax Effect of Special Charges (Income). (2,520) - - 4,200 (2,520)
------------ ----------- ----------- ------------ ------------
Net Income from Continuing Operations Before
Tax Effected Special Charges . . . . . . . . . $ 10,855 $ 13,658 $ 12,893 $ 35,677 $ 48,315
============ =========== =========== ============ ============
Stock Compensation Expense. . . . . . . . . . 915 1,119 1,560 3,145 4,219
After Tax Effect Stock Compensation Expense . 622 761 1,061 2,044 2,869
------------ ----------- ----------- ------------ ------------
Net Income from Continuing Operations Before Tax
Effected Special Charges & Stock Compensation . . $ 11,477 $ 14,419 $ 13,954 $ 37,721 $ 51,184
============ =========== =========== ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges . . . . . . $ 0.36 $ 0.45 $ 0.42 $ 1.10 $ 1.55
============ =========== =========== ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation . . . . . . . . . . . . . . . . . $ 0.38 $ 0.47 $ 0.45 $ 1.16 $ 1.63
============ =========== =========== ============ ============
Diluted Average Common Shares Outstanding . . . . 31,059,431 30,501,615 31,041,763 32,475,155 31,430,398
- ------------------------------------------------- ------------ ----------- ----------- ------------ ------------
<FN>
(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 titles 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
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Three Months Ended
-------------------
June-02 Sep-02 Dec-02 Mar-03 Jun-03
-------- ------------------- ------- ------- -------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 21,435 $ 20,944 $19,489 $24,597 $25,566
SFAS 150 gain on stock call option . . . . . . . . . . . . . . . - - - - -
Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . - - 983 - -
Asset Writedown. . . . . . . . . . . . . . . . . . . . . . . . . - - - - -
Restructuring & Other Charges. . . . . . . . . . . . . . . . . . - - 1,983 - -
Other Charges to Cost of Sales . . . . . . . . . . . . . . . . . - - 3,211 - -
-------- ------------------- ------- ------- -------
Total Special Charges. . . . . . . . . . . . . . . . . . - - 6,177 - -
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . 1,570 1,557 1,528 769 851
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 4,143 4,130 3,806 3,941 4,002
EBITDA from Continuing Operations Before
-------- ------------------- ------- ------- -------
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $ 27,148 $ 26,631 $31,000 $29,307 $30,419
======== =================== ======= ======= =======
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands) Year Year
Ended Ended
Sep-03 Dec-03 Mar-04 Dec-02 Dec-03
-------- ------- ------- -------- ---------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $25,611 $27,690 $26,551 $ 81,482 $103,464
SFAS 150 gain on stock call option . . . . . . . . . . . . . . . (2,214) - - - (2,214)
Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - 983 -
Asset Writedown. . . . . . . . . . . . . . . . . . . . . . . . . - - - - -
Restructuring & Other Charges. . . . . . . . . . . . . . . . . . - - - 1,983 -
Other Charges to Cost of Sales . . . . . . . . . . . . . . . . . - - - 3,211 -
-------- ---------
-------- ------- ------- -------- ---------
Total Special Charges. . . . . . . . . . . . . . . . . . (2,214) - - 6,177 (2,214)
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . 792 889 734 6,222 3,301
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 3,874 3,976 4,125 16,363 15,793
EBITDA from Continuing Operations Before
-------- ------- ------- -------- ---------
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $28,063 $32,555 $31,410 $110,244 $120,344
======== ======= ======= ======== =========
<FN>
(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 titles 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
Owners Earnings (b)
- ----------------------------------------------------------
(In thousands)
Three Months Ended
--------------------
June-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03
--------- -------------------- -------- ------- -------- -------
Net cash flow provided by operating activities . . . . . . $ 37,076 $ 28,936 $47,304 $19,397 $25,586 $16,629
Capital expenditures, net. . . . . . . . . . . . . . . . . 1,124 (3) 2,110 979 1,722 2,790
--------- -------------------- -------- ------- -------- -------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 35,952 $ 28,939 $45,194 $18,418 $23,864 $13,839
========= ==================== ======== ======= ======== =======
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 35,952 $ 28,939 $45,194 $18,418 $23,864 $13,839
Assumed if Bond Interest was paid quarterly. . . . . . . . (6,900) 6,900 (6,900) 6,900 (6,900) 6,900
--------- -------------------- -------- ------- -------- -------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $ 29,052 $ 35,839 $38,294 $25,318 $16,964 $20,739
- ---------------------------------------------------------- ========= ==================== ======== ======= ======== =======
Owners Earnings (b)
- ----------------------------------------------------------
(In thousands) Year Year
Ended Ended
Dec-03 Mar-04 Dec-02 Dec-03
-------- ------- -------- -------
Net cash flow provided by operating activities . . . . . . $29,159 $ 7,189 $126,193 $90,771
Capital expenditures, net. . . . . . . . . . . . . . . . . 5,213 782 4,387 10,704
-------- ------- -------- -------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $23,946 $ 6,407 $121,806 $80,067
======== ======= ======== =======
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $23,946 $ 6,407 $121,806 $80,067
Assumed if Bond Interest was paid quarterly. . . . . . . . (6,900) 6,900 - -
-------- -------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $17,046 $13,307 $121,806 $80,067
- ---------------------------------------------------------- ======== ======= ======== =======
<FN>
(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 titles 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.