EARNINGS ANNOUNCEMENT
WATERBURY, CONNECTICUT
AUGUST 4TH, 2004
FOR IMMEDIATE RELEASE
SECOND QUARTER DILUTED EARNINGS PER SHARE $0.43 UP 13%
MacDermid, Incorporated a worldwide manufacturer of proprietary specialty
chemical products and materials for the electronics, metal finishing and graphic
arts industries (NYSE: MRD) today reported second quarter sales of $ 165.1
million, a 6% increase over the same period in 2003. Revenues reflected strong
demand in its Advanced Surface Finishing business offset partially by continued
weakness in its Printing Solutions business, along with the favorable impact of
foreign currency. Earnings of $13.4 million were up 10% over $12.1 and diluted
earnings per share of $0.43 were up 13% over $0.38 in the same period a year
ago. Owner Earnings a measure of free cash flow (defined below) were $26.5
million. Cash retained as of June 30th, 2004 is $90.9 million.
"I would characterize this quarter as solid but not spectacular," said Daniel
Leever Chairman and Chief Executive Officer. "We saw excellent growth in
Advanced Surface Finishing in Asia and North America, while Printing Solutions
continues to struggle. Overall the European economy continues to lag the rest
of the world. The combined effect is only fair top line performance. We were
pleased to see our cash generation was back to the level we have come to expect.
We ended up with $90.9 million in cash on hand. We are increasingly optimistic
about opportunities to put that cash to work creating significant shareholder
value. We are hopeful we can grow earnings from this base throughout the rest
of the year."
Sales in Advanced Surface Finishing of $96.4 million were up 12.6% (7.7% after
currency) over the same period in 2003, primarily driven by strong demand in
Asia, improved penetration in North America, and favorable currency. Operating
profit of $15.7 million was 26% higher than the prior year reflecting expected
earnings leverage on higher revenue.
Printing Solutions sales of $68.7 million were down 1.5% (3.3% after currency)
reflecting poor market conditions especially in Europe. Operating profit of
$10.9 million was down 16% from the prior period due to unabsorbed overheads and
lower volume.
Comments on Second Quarter Income Statement
Gross profit margin in the quarter was 47.3% similar to the prior year
reflecting stable selling and raw material prices, better factory utilization in
Advanced Surface Finishing and modest under absorption in Printing Solutions.
Total operating expenses were 6.3% higher than the prior year about half of
which was currency and the other largest item was expenses related to the
ongoing build of staff in Asia.
Interest expense was flat to the prior period.
Income tax was the same 32% as the prior period.
Year-To-Date 2004 Performance
Sales for the six months ended June 30, 2004 were $327.1 million, up 6% from the
prior year. Earnings for the six months were $26.3 million up 11%. Earnings
per share were $0.85 up 15% over the prior 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
AUGUST 4,2004
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 Six Months Ended
-------------------- ------------------
June 30th June 30th June 30th June 30th
2004 2003 2004 2003
-------------------- ------------------ ------------ ------------
Proprietary sales. . . . . . . . . . . . . . . . . $ 154,953 $ 146,726 $ 307,152 $ 290,399
Other sales. . . . . . . . . . . . . . . . . . . . 10,100 8,594 19,913 17,725
-------------------- ------------------ ------------ ------------
Total net sales. . . . . . . . . . . . . . . . . . $ 165,053 $ 155,320 $ 327,065 $ 308,124
-------------------- ------------------ ------------ ------------
Gross margin . . . . . . . . . . . . . . . . . . . 78,074 73,794 155,600 146,336
GM % . . . . . . . . . . . . . . . . . . . . . . 47.3% 47.5% 47.6% 47.5%
Selling, technical and administrative. . . . . . . 46,227 43,499 91,587 86,785
Research and development . . . . . . . . . . . . . 5,196 4,860 10,553 9,726
-------------------- ------------------ ------------ ------------
Operating profit . . . . . . . . . . . . . . . . . 26,651 25,435 53,460 49,825
Other income (expense), net. . . . . . . . . . . . 697 132 439 339
Interest expense, net. . . . . . . . . . . . . . . (7,664) (7,725) (15,255) (15,163)
-------------------- ------------------ ------------ ------------
Earnings before income taxes and discontinued
operations . . . . . . . . . . . . . . . . . . . 19,684 17,842 38,644 35,001
Income tax (expense) . . . . . . . . . . . . . . . (6,299) (5,708) (12,366) (11,199)
-------------------- ------------------ ------------ ------------
Earnings from continuing operations. . . . . . . . 13,385 12,134 26,278 23,802
Discontinued operations. . . . . . . . . . . . . . - (4) - (106)
-------------------- ------------------ ------------ ------------
Net earnings . . . . . . . . . . . . . . . . . . . $ 13,385 $ 12,130 $ 26,278 $ 23,696
==================== ================== ============ ============
Continuing operations per share. . . . . . . . . . $ 0.43 $ 0.38 $ 0.85 $ 0.74
Discontinued operations per share. . . . . . . . . $ 0.00 ($0.00) $ 0.00 ($0.00)
-------------------- ------------------ ------------ ------------
Diluted earnings per share . . . . . . . . . . . . $ 0.43 $ 0.38 $ 0.85 $ 0.74
==================== ================== ============ ============
Diluted average common shares outstanding. . . . . 31,014,374 31,720,959 31,028,527 32,091,145
==================== ================== ============ ============
MACDERMID, INCORPORATED
SALES AND MARGINS BY REGION
($ in thousands)
Three Months Ended Six Months Ended
-------------------- ------------------
June 30th June 30th June 30th June 30th
2004 2003 2004 2003
-------------------- ------------------ ----------- -----------
AMERICAS
Total net sales . . . . . . . $ 68,941 $ 67,147 $ 134,617 $ 135,664
Operating profit. . . . . . . $ 12,160 $ 11,609 $ 23,690 $ 21,805
OP %. . . . . . . . . . . . . 17.6% 17.3% 17.6% 16.1%
EUROPE
Total net sales . . . . . . . $ 58,779 $ 56,399 $ 120,568 $ 111,236
Operating profit. . . . . . . $ 6,991 $ 7,520 $ 15,029 $ 15,682
OP %. . . . . . . . . . . . . 11.9% 13.3% 12.5% 14.1%
ASIA
Total net sales . . . . . . . $ 37,333 $ 31,774 $ 71,880 $ 61,223
Operating profit. . . . . . . $ 7,500 $ 6,306 $ 14,741 $ 12,338
OP %. . . . . . . . . . . . . 20.1% 19.8% 20.5% 20.2%
CONSOLIDATED TOTAL
Total net sales . . . . . . . $ 165,053 $ 155,320 $ 327,065 $ 308,123
Operating profit. . . . . . . $ 26,651 $ 25,435 $ 53,460 $ 49,825
OP %. . . . . . . . . . . . . 16.1% 16.4% 16.3% 16.2%
MACDERMID, INCORPORATED
SALES AND MARGINS BY GROUP
($ in thousands)
Three Months Ended Six Months Ended
----------------------------- --------------------
June 30th June 30th June 30th June 30th
2004 2003 2004 2003
-------------------- ------------------ ----------- -----------
ADVANCED SURFACE FINISHING
Total net sales . . . . . . . $ 96,376 $ 85,627 $ 189,864 $ 170,598
Operating profit. . . . . . . $ 15,729 $ 12,508 $ 30,466 $ 24,762
OP %. . . . . . . . . . . . . 16.3% 14.6% 16.0% 14.5%
PRINTING SOLUTIONS
Total net sales . . . . . . . $ 68,677 $ 69,693 $ 137,201 $ 137,525
Operating profit. . . . . . . $ 10,922 $ 12,927 $ 22,994 $ 25,063
OP %. . . . . . . . . . . . . 15.9% 18.5% 16.8% 18.2%
CONSOLIDATED TOTAL
Total net sales . . . . . . . $ 165,053 $ 155,320 $ 327,065 $ 308,123
Operating profit. . . . . . . $ 26,651 $ 25,435 $ 53,460 $ 49,825
OP %. . . . . . . . . . . . . 16.1% 16.4% 16.3% 16.2%
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
in thousands
June 30th Dec. 31st
2004 2003
----------- -----------
(Unaudited)
Cash and cash equivalents. . . . . . . . . $ 90,919 $ 61,294
Accounts receivable, net . . . . . . . . . 140,285 137,149
Inventories, net . . . . . . . . . . . . . 77,039 75,775
Other current assets . . . . . . . . . . . 31,824 31,097
----------- -----------
340,067 305,315
Property, plant & equipment, net . . . . . 106,907 113,642
Goodwill . . . . . . . . . . . . . . . . . 194,200 194,200
Intangibles. . . . . . . . . . . . . . . . 29,211 30,061
Other assets, net. . . . . . . . . . . . . 50,880 54,017
----------- -----------
Total assets . . . . . . . . . . . . . . . $ 721,265 $ 697,235
=========== ===========
Payables and accruals. . . . . . . . . . . $ 123,736 $ 124,125
Short-term debt. . . . . . . . . . . . . . 861 1,498
Long-term debt . . . . . . . . . . . . . . 301,127 301,203
Other long-term liabilities. . . . . . . . 31,723 31,397
Shareholders' equity . . . . . . . . . . . 263,818 239,012
----------- -----------
Total liabilities & shareholders' equity . $ 721,265 $ 697,235
=========== ===========
Debt to total capital. . . . . . . . . . . 53% 56%
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED SUMMARY OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended Six Months Ended
-------------------- ------------------
June 30th June 30th June 30th June 30th
2004 2003 2004 2003
-------------------- ------------------ ----------- -----------
Net earnings . . . . . . . . . . . . . . . . . $ 13,385 $ 12,130 $ 26,278 $ 23,696
Earnings (loss) from discontinued operations . - 4 - 106
-------------------- ------------------ ----------- -----------
Earnings from continuing operations. . . . . . 13,385 12,134 26,278 23,802
Depreciation . . . . . . . . . . . . . . . . . 3,989 4,002 8,114 7,943
Amortization . . . . . . . . . . . . . . . . . 717 851 1,451 1,620
Provision for bad debt . . . . . . . . . . . . 908 818 1,507 2,538
Stock compensation expense . . . . . . . . . . 1,472 1,154 3,032 2,185
Deferred taxes . . . . . . . . . . . . . . . . 277 - 128 -
Working capital changes. . . . . . . . . . . . 7,405 6,370 (6,380) 4,409
Discontinued operations. . . . . . . . . . . . - 284 - 2,513
-------------------- ------------------ ----------- -----------
Cash from operations . . . . . . . . . . . . . 28,153 25,613 34,130 45,010
Capital spending, net. . . . . . . . . . . . . (1,662) (1,722) (2,444) (2,701)
-------------------- ------------------ ----------- -----------
Owner earnings** . . . . . . . . . . . . . . . 26,491 23,891 31,686 42,309
Dividends paid . . . . . . . . . . . . . . . . (1,212) (647) (1,212) (1,293)
Increase/(decrease) in debt. . . . . . . . . . (418) (2,022) (740) (5,592)
Treasury shares. . . . . . . . . . . . . . . . - (30,510) 31 (30,460)
Other. . . . . . . . . . . . . . . . . . . . . (501) 957 (140) 1,320
-------------------- ------------------ ----------- -----------
Increase/(decrease) in cash. . . . . . . . . . $ 24,360 $ (8,331) $ 29,625 $ 6,284
==================== ================== =========== ===========
**Note: Pro forma owner earnings
adjusted for semi-annual bond interest
payments would have been as follows:. . $ 19,591 $ 16,991 $ 31,686 $ 42,309
==================== ================== =========== ===========
MACDERMID, INC.
REGULATION G: GAAP TO NON-GAAP RECONCILIATION
Gross Profit Before Special Charges (a) (b)
- ------------------------------------------------
(In thousands)
Three Months Ended
--------------------
Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
-------------------- --------- --------- --------- --------- ---------
Net Sales as reported. . . . . . . . . . . . . . $ 151,430 $156,905 $152,803 $155,320 $149,658 $162,105
-------------------- --------- --------- --------- --------- ---------
Gross Profit as reported . . . . . . . . . . . . $ 69,067 $ 65,620 $ 72,542 $ 73,793 $ 69,917 $ 74,363
Add: Special Charges . . . . . . . . . . . . . . - 3,211 - - - -
-------------------- --------- --------- --------- --------- ---------
Gross Profit Before Special Charges. . . . . . . $ 69,067 $ 68,831 $ 72,542 $ 73,793 $ 69,917 $ 74,363
-------------------- --------- --------- --------- --------- ---------
GP % Before Special Charges. . . . . . . . . . . 45.6% 43.9% 47.5% 47.5% 46.7% 45.9%
MACDERMID, INC.
REGULATION G: GAAP TO NON-GAAP RECONCILIATION
Gross Profit Before Special Charges (a) (b)
- ------------------------------------------------
(In thousands)
Three Months Ended Year Ended
------------------ ------------------
Mar-04 Jun-04 Dec 31-02 Dec 31-03
--------- --------- ----------- -----------
Net Sales as reported. . . . . . . . . . . . . . $162,012 $165,053 $ 611,490 $ 619,886
--------- --------- ----------- -----------
Gross Profit as reported . . . . . . . . . . . . $ 77,526 $ 78,074 $ 274,478 $ 290,615
Add: Special Charges . . . . . . . . . . . . . . - - 3,211 -
--------- --------- ----------- -----------
Gross Profit Before Special Charges. . . . . . . $ 77,526 $ 78,074 $ 277,689 $ 290,615
--------- --------- ----------- -----------
GP % Before Special Charges. . . . . . . . . . . 47.9% 47.3% 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 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.
Operating Profit Before Amortization and Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Three Months Ended
--------------------
Sep-02 Dec-02 Mar-03 Jun-03 Sep-03
-------------------- --------- --------- --------- ---------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $ 151,430 $156,905 $152,803 $155,320 $149,658
-------------------- --------- --------- --------- ---------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 20,944 $ 19,489 $ 24,597 $ 25,566 $ 25,611
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . 1,187 930 (207) (132) (2,833)
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - 6,177 - - -
-------------------- --------- --------- --------- ---------
Operating Profit Before Special Charges. . . . . . . . . . . . . $ 22,131 $ 26,596 $ 24,390 $ 25,434 $ 22,778
==================== ========= ========= ========= =========
% OP Before Special Charges to Net Sales . . . . . . . . . . . . 14.6% 17.0% 16.0% 16.4% 15.2%
Operating Profit Before Amortization and Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Three Months Ended Year Ended
-------------------- ------------
Dec-03 Mar-04 Jun-04 Dec 31-02 Dec 31-03
--------- --------- --------- ----------- -----------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $162,105 $162,012 $165,053 $ 611,490 $ 619,886
--------- --------- --------- ----------- -----------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 27,690 $ 26,551 $ 27,348 $ 81,482 $ 103,464
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . (1,142) 258 (697) 2,651 (4,314)
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - - - 6,177 -
--------- --------- --------- ----------- -----------
Operating Profit Before Special Charges. . . . . . . . . . . . . $ 26,548 $ 26,809 $ 26,651 $ 90,310 $ 99,150
========= ========= ========= =========== ===========
% OP Before Special Charges to Net Sales . . . . . . . . . . . . 16.4% 16.5% 16.1% 14.8% 16.0%
<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 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
- -------------------------------------------------- ------------------- ----------- ------------ ------------ ------------
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 Year Ended
-------------------- ------------
Sep-03 Dec-03 Mar-04 Jun-04 Dec-02 Dec-03
------------ ----------- ----------- ----------- ------------ ------------
Net Income (Loss) as reported. . . . . . . . . . . $ 13,441 $ 19,290 $ 12,893 $ 13,385 $ 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 13,385 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 $ 13,385 $ 35,677 $ 48,315
============ =========== =========== =========== ============ ============
Stock Compensation Expense . . . . . . . . . . 915 1,119 1,560 1,472 3,145 4,219
After Tax Effect Stock Compensation Expense. . 622 761 1,061 1,001 2,044 2,869
------------ ----------- ----------- ----------- ------------ ------------
Net Income from Continuing Operations Before Tax
Effected Special Charges & Stock Compensation. . . $ 11,477 $ 14,419 $ 13,954 $ 14,386 $ 37,721 $ 51,184
============ =========== =========== =========== ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges. . . . . . . $ 0.36 $ 0.45 $ 0.42 $ 0.43 $ 1.10 $ 1.55
============ =========== =========== =========== ============ ============
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation. . . . . . . . . . . . . . . . . . $ 0.38 $ 0.47 $ 0.45 $ 0.46 $ 1.16 $ 1.63
============ =========== =========== =========== ============ ============
Diluted Average Common Shares Outstanding. . . . . 31,059,431 30,501,615 31,041,763 31,014,374 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 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.
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Three Months Ended
-------------------
June-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04
------------------- ------- ------- ------- ------- -------- ------- -------
Earnings Before Interest and Taxes. . . . $ 21,435 $20,944 $19,489 $24,597 $25,566 $25,611 $27,690 $26,551
SFAS 150 gain on stock call option. . . . - - - - - (2,214) - -
Impairment. . . . . . . . . . . . . . . . - - 983 - - - - -
Asset Writedown . . . . . . . . . . . . . - - - - - - - -
Restructuring & Other Charges . . . . . . - - 1,983 - - - - -
Other Charges to Cost of Sales. . . . . . - - 3,211 - - - - -
------------------- ------- ------- ------- ------- -------- ------- -------
Total Special Charges . . . . . . - - 6,177 - - (2,214) - -
Amortization. . . . . . . . . . . . . . . 1,570 1,557 1,528 769 851 792 889 734
Depreciation. . . . . . . . . . . . . . . 4,143 4,130 3,806 3,941 4,002 3,874 3,976 4,125
------------------- ------- ------- ------- ------- -------- ------- -------
EBITDA from Continuing Operations Before
Special Charges. . . . . . . . . . . . $ 27,148 $26,631 $31,000 $29,307 $30,419 $28,063 $32,555 $31,410
=================== ======= ======= ======= ======= ======== ======= =======
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Three
Months Year
Ended Ended
------ -------------
Jun-04 Dec-02 Dec-03
------- -------- ---------
Earnings Before Interest and Taxes. . . . $27,348 $ 81,482 $103,464
SFAS 150 gain on stock call option. . . . - - (2,214)
Impairment. . . . . . . . . . . . . . . . - 983 -
Asset Writedown . . . . . . . . . . . . . - - -
Restructuring & Other Charges . . . . . . - 1,983 -
Other Charges to Cost of Sales. . . . . . - 3,211 -
------- -------- ---------
Total Special Charges . . . . . . - 6,177 (2,214)
Amortization. . . . . . . . . . . . . . . 717 6,222 3,301
Depreciation. . . . . . . . . . . . . . . 3,989 16,363 15,793
------- -------- ---------
EBITDA from Continuing Operations Before
Special Charges. . . . . . . . . . . . $32,054 $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 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.
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 $29,581 $46,659 $19,397 $25,613 $17,248
Capital expenditures, net. . . . . . . . . . . . . . . . . 1,124 (3) 2,110 979 1,722 2,790
-------------------- -------- -------- ------- -------- -------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 35,952 $29,584 $44,549 $18,418 $23,891 $14,458
==================== ======== ======== ======= ======== =======
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 35,952 $29,584 $44,549 $18,418 $23,891 $14,458
Assumed if Bond Interest was paid quarterly. . . . . . . . (6,900) 6,900 (6,900) 6,900 (6,900) 6,900
-------------------- -------- -------- ------- -------- -------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $ 29,052 $36,484 $37,649 $25,318 $16,991 $21,358
- ---------------------------------------------------------- ==================== ======== ======== ======= ======== =======
Owners Earnings (b)
- ----------------------------------------------------------
(In thousands)
Three Months Ended Year Ended
-------------------- ---------------
Dec-03 Mar-04 Jun-04 Dec-02 Dec-03
-------- ------- -------- -------- -------
Net cash flow provided by operating activities . . . . . . $29,159 $ 5,977 $28,153 $126,193 $91,417
Capital expenditures, net. . . . . . . . . . . . . . . . . 5,213 782 1,662 4,387 10,704
-------- ------- -------- -------- -------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $23,946 $ 5,195 $26,491 $121,806 $80,713
======== ======= ======== ======== =======
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $23,946 $ 5,195 $26,491 $121,806 $80,713
Assumed if Bond Interest was paid quarterly. . . . . . . . (6,900) 6,900 (6,900) - -
-------- ------- -------- -------- -------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $17,046 $12,095 $19,591 $121,806 $80,713
- ---------------------------------------------------------- ======== ======= ======== ======== =======
<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 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.