EARNINGS ANNOUNCEMENT
DENVER, COLORADO
MAY 4TH, 2005
FOR IMMEDIATE RELEASE
FIRST QUARTER DILUTED EARNINGS PER SHARE $0.38
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 first quarter sales of $ 170.2
million, a 5.1% increase over the same period in 2004. Revenues reflected
strong demand in its Advanced Surface Finishing business in Asia, combined with
the favorable impact of foreign currency.
Diluted earnings per share of $0.38 were $0.04 less than the $0.42 per share
from continuing operations in 2004. Earnings for the quarter of $11.8 million
were 8.6% less than a year ago.
Owner Earnings, a measure of free cash flow (defined below and shown in BOLD in
the attached Condensed Consolidated Summary of Cash Flows), were a negative $ 1
million for the quarter ended March 31 2005, due to increases in working
capital. Cash retained as of March 31, 2005 is $133.7 million.
Advanced Surface Finishing (ASF) segment
- --------------------------------------------
Sales in our ASF segment for the quarter increased by $5.7 million or 6.0%. In
Asia we started the year with new installations in both the Electronics as well
as the Industrial products business, increasing our proprietary sales by 16.6%
over the prior year quarter. Sales were down in the USA and Europe due mainly to
continued weakness in our Electronics business in these areas.
Our gross profit percentage declined by 2.6 percentage points due to factors
such as a change in the product mix, a temporary shut down at one of our plants
which we are upgrading which caused an under-recovery of overheads, low start up
margins on new installations in China, and higher non-proprietary sales at a
much lower margin.
Our operating expenses in ASF were higher than last year due mainly to the added
head count in Asia to support the increased level of sales
Printing Solutions segment
- ----------------------------
Our Printing Solutions business showed increased sales but a decline in
operating profit over the first quarter last year. Our sales are suffering from
the unfavorable comparison with last year which was before we implemented the
direct marketing strategy in the packaging business in North America. In Europe
our distributors built inventory last year in the first quarter in anticipation
of a recovery, but no such large ramp up in orders occurred this year.
Our gross profit in $ terms was flat to last year, which means that the gross
profit % is lower because this business has higher overheads which need to be
absorbed.
Our operating expenses were higher than the prior year due to increased R & D
expenditure, direct selling staff in Packaging in North America and higher costs
in Colorspan to support the increased business.
Dan Leever Chairman and CEO said "This quarter is disappointing as we failed to
meet our standards for growth in earnings. Our Owner Earnings were also
disappointing. Whereas there were seasonal and timing issues that masked what
would have been better performance, we have to admit we did not execute as well
as we should. We are committed to improving our performance throughout the year,
but now are less confident we will be able to grow earnings for the year. We
expect Owner Earnings will return closer to historic levels as the year
progresses."
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
MAY 4TH, 2005
THIS REPORT AND OTHER CORPORATION REPORTS AND STATEMENTS DESCRIBE MANY OF THE
POSITIVE FACTORS AFFECTING THE CORPORATION'S FUTURE BUSINESS PROSPECTS.
INVESTORS SHOULD ALSO BE AWARE OF FACTORS THAT COULD HAVE A NEGATIVE IMPACT ON
THOSE PROSPECTS. THESE INCLUDE POLITICAL, ECONOMIC OR OTHER CONDITIONS SUCH AS
CURRENCY EXCHANGE RATES, INFLATION RATES, RECESSIONARY OR EXPANSIVE TRENDS,
TAXES AND REGULATIONS AND LAWS AFFECTING THE BUSINESS; COMPETITIVE PRODUCTS,
ADVERTISING, PROMOTIONAL AND PRICING ACTIVITY; THE DEGREE OF ACCEPTANCE OF NEW
PRODUCT INTRODUCTIONS IN THE MARKETPLACE; TECHNICAL DIFFICULTIES WHICH MAY ARISE
WITH NEW PRODUCT INTRODUCTIONS; AND THE DIFFICULTY OF FORECASTING SALES AT
CERTAIN TIMES IN CERTAIN MARKETS.
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED SUMMARY OF EARNINGS
(Unaudited)
$ in thousands, except share and per share amounts
Three Months Ended
-------------------------
Mar. 31st Mar. 31st
2005 2004
---------------- ----------------
Proprietary sales. . . . . . . . . . . . . $ 160,185 $ 152,199
Other sales. . . . . . . . . . . . . . . . 10,062 9,813
---------------- ----------------
Total net sales. . . . . . . . . . . . . . $ 170,247 $ 162,012
---------------- ----------------
Gross margin . . . . . . . . . . . . . . . 77,653 77,526
GM % . . . . . . . . . . . . . . . . . . 45.6% 47.9%
Selling, technical and administrative. . . 46,670 45,360
Research and development . . . . . . . . . 6,532 5,357
---------------- ----------------
Operating profit . . . . . . . . . . . . . 24,451 26,809
Other income (expense), net. . . . . . . . 30 (258)
Interest expense, net. . . . . . . . . . . (7,022) (7,591)
---------------- ----------------
Earnings before income taxes . . . . . . . 17,459 18,960
Income tax (expense) . . . . . . . . . . . (5,674) (6,067)
---------------- ----------------
Net earnings . . . . . . . . . . . . . . . $ 11,785 $ 12,893
================ ================
Diluted earnings per share . . . . . . . . $ 0.38 $ 0.42
================ ================
Diluted average common
shares outstanding. 30,809,620 31,041,763
================ ================
MACDERMID, INCORPORATED
SALES AND MARGINS BY REGION
$ in thousands
Three Months Ended
-------------------------
Mar. 31st Mar. 31st
2005 2004
---------------- ----------------
AMERICAS
Total net sales . . . . . . . . . . . . . $ 67,492 $ 65,676
Operating profit. . . . . . . . . . . . . $ 8,975 $ 11,530
OP %. . . . . . . . . . . . . . . . . . . 13.3% 17.6%
EUROPE
Total net sales . . . . . . . . . . . . . $ 62,510 $ 61,789
Operating profit. . . . . . . . . . . . . $ 8,717 $ 8,038
OP %. . . . . . . . . . . . . . . . . . . 13.9% 13.0%
ASIA
Total net sales . . . . . . . . . . . . . $ 40,245 $ 34,547
Operating profit. . . . . . . . . . . . . $ 6,759 $ 7,241
OP %. . . . . . . . . . . . . . . . . . . 16.8% 21.0%
CONSOLIDATED TOTAL
Total net sales . . . . . . . . . . . . . $ 170,247 $ 162,012
Operating profit. . . . . . . . . . . . . $ 24,451 $ 26,809
OP %. . . . . . . . . . . . . . . . . . . 14.4% 16.5%
MACDERMID, INCORPORATED
SALES AND MARGINS BY GROUP
$ in thousands
Three Months Ended
-------------------------
Mar. 31st Mar. 31st
2005 2004
---------------- ----------------
ADVANCED SURFACE FINISHING
Total net sales . . . . . . . . . . . . . $ 99,141 $ 93,488
Operating profit. . . . . . . . . . . . . $ 14,135 $ 14,737
OP %. . . . . . . . . . . . . . . . . . . 14.3% 15.8%
PRINTING SOLUTIONS
Total net sales . . . . . . . . . . . . . $ 71,106 $ 68,524
Operating profit. . . . . . . . . . . . . $ 10,316 $ 12,072
OP %. . . . . . . . . . . . . . . . . . . 14.5% 17.6%
CONSOLIDATED TOTAL
Total net sales . . . . . . . . . . . . . $ 170,247 $ 162,012
Operating profit. . . . . . . . . . . . . $ 24,451 $ 26,809
OP %. . . . . . . . . . . . . . . . . . . 14.4% 16.5%
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
$ in thousands
Mar. 31st Dec. 31st
2005 2004
---------------- ----------------
(Unaudited)
Cash and cash equivalents . . . . . . . . $ 133,741 $ 137,829
Accounts receivable, net. . . . . . . . . 145,019 142,455
Inventories, net. . . . . . . . . . . . . 84,107 80,445
Other current assets. . . . . . . . . . . 27,124 28,486
---------------- ----------------
Current Assets . . . . . . . . . . . . 389,991 389,215
Property, plant & equipment, net. . . . . 107,053 110,463
Goodwill. . . . . . . . . . . . . . . . . 194,287 194,287
Intangibles . . . . . . . . . . . . . . . 27,993 28,434
Other assets, net . . . . . . . . . . . . 47,061 51,320
---------------- ----------------
Total assets . . . . . . . . . . . . . $ 766,385 $ 773,719
================ ================
Payables and accruals . . . . . . . . . . $ 117,491 $ 128,359
Short-term debt . . . . . . . . . . . . . 869 753
---------------- ----------------
Current Liabilities. . . . . . . . . . 118,360 129,112
Long-term debt. . . . . . . . . . . . . . 300,888 301,077
Other long-term liabilities . . . . . . . 37,528 39,499
---------------- ----------------
Total Liabilities. . . . . . . . . . . 456,776 469,688
Shareholders' equity. . . . . . . . . . . 309,609 304,031
---------------- ----------------
Total liabilities &
shareholders' equity. $ 766,385 $ 773,719
================ ================
Debt to total capital . . . . . . . . . . 49% 50%
---------------- ----------------
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED SUMMARY OF CASH FLOWS
(Unaudited)
$ in thousands
Three Months Ended
-------------------------
Mar. 31st Mar. 31st
2005 2004
---------------- ----------------
Net earnings . . . . . . . . . . . . . . . $ 11,785 $ 12,893
Depreciation . . . . . . . . . . . . . . . 3,846 4,125
Amortization . . . . . . . . . . . . . . . 891 734
Provision for bad debt . . . . . . . . . . 517 599
Stock compensation expense . . . . . . . . 2,177 1,560
Deferred taxes . . . . . . . . . . . . . . 163 (149)
Working capital changes. . . . . . . . . . (17,356) (13,785)
---------------- ----------------
Cash from operations . . . . . . . . . . . 2,023 5,977
Capital spending, net. . . . . . . . . . . (2,990) (782)
---------------- ----------------
OWNER EARNINGS** . . . . . . . . . . . . . (967) 5,195
Dividends Paid . . . . . . . . . . . . . . (1,212) -
Increase/(decrease) in debt. . . . . . . . (62) (322)
Treasury shares. . . . . . . . . . . . . . 33 31
Other. . . . . . . . . . . . . . . . . . . (1,880) 361
---------------- ----------------
Increase/(decrease) in cash. . . . . . . . $ (4,088) $ 5,265
================ ================
**Note: Pro forma owner earnings
adjusted for semi-annual bond interest
payments would have been as follows: $ 5,933 $ 12,095
================ ================
MACDERMID, INC.
REGULATION G: GAAP TO NON-GAAP RECONCILIATION
Gross Profit Before Special Charges (a) (b)
- -------------------------------------------
(In thousands) Three Months Ended
------------------
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
--------- --------- --------- --------- ---------
Net Sales as reported . . . . . . . . $ 155,320 $ 149,657 $ 162,106 $ 162,012 $ 165,053
--------- --------- --------- --------- ---------
Gross Profit as reported. . . . . . . $ 73,794 $ 69,916 $ 74,363 $ 77,526 $ 78,074
Add: Special Charges. . . . . . . . . - - - - -
--------- --------- --------- --------- ---------
Gross Profit Before
Special Charges . . . . . . . . . . . $ 73,794 $ 69,916 $ 74,363 $ 77,526 $ 78,074
--------- --------- --------- --------- ---------
GP % Before Special
Charges . . . . . . . . . . . . . . 47.5% 46.7% 45.9% 47.9% 47.3%
Gross Profit Before Special Charges (a) (b)
- ------------------------------------------- Year Year
(In thousands) Three Months Ended Ended Ended
------------------- ----- -----
Sep-04 Dec-04 Mar-05 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Net Sales as reported . . . . . . . . $ 161,585 $ 172,135 $ 170,247 $ 619,886 $ 660,785
--------- --------- --------- --------- ---------
Gross Profit as reported. . . . . . . $ 76,375 $ 81,266 $ 77,653 $ 290,615 $ 313,241
Add: Special Charges. . . . . . . . . - - - - -
--------- --------- --------- --------- ---------
Gross Profit Before
Special Charges . . . . . . . . . . . $ 76,375 $ 81,266 $ 77,653 $ 290,615 $ 313,241
--------- --------- --------- --------- ---------
GP % Before Special
Charges. . . . . . . . . . . . . . . 47.3% 47.2% 45.6% 46.9% 47.4%
<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
------------------
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
--------- --------- --------- --------- ---------
Net Sales per above . . . . . . . . $ 155,320 $ 149,657 $ 162,106 $ 162,012 $ 165,053
--------- --------- --------- --------- ---------
Earnings Before Interest
and Taxes . . . . . . . . . . . . . $ 25,567 $ 25,611 $ 27,689 $ 26,551 $ 27,348
Add: Other (Income) Expense . . . . (132) (2,833) (1,142) 258 (697)
Add: Special Charges. . . . . . . . - - - - -
--------- --------- --------- --------- ---------
Operating Profit Before
Special Charges. . . . . . . . . . $ 25,435 $ 22,778 $ 26,547 $ 26,809 $ 26,651
========= ========= ========= ========= =========
% OP Before Special
Charges to Net Sales . . . . . . . 16.4% 15.2% 16.4% 16.5% 16.1%
Operating Profit Before Amortization and Special Charges (a) (b)
- ---------------------------------------------------------------- Year Year
(In thousands) Three Months Ended Ended Ended
------------------ ----- -----
Sep-04 Dec-04 Mar-05 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Net Sales per above . . . . . . . . $ 161,585 $ 172,135 $ 170,247 $ 619,886 $ 660,785
--------- --------- --------- --------- ---------
Earnings Before Interest
and Taxes . . . . . . . . . . . . . $ 25,838 $ 27,615 $ 24,481 $ 103,464 $ 107,352
Add: Other (Income) Expense . . . . (92) (1,411) (30) (4,314) (1,942)
Add: Special Charges. . . . . . . . - - - - -
--------- --------- --------- --------- ---------
Operating Profit Before
Special Charges. . . . . . . . . . $ 25,746 $ 26,204 $ 24,451 $ 99,150 $ 105,410
========= ========= ========= ========= =========
% OP Before Special
Charges to Net Sales . . . . . . . 15.9% 15.2% 14.4% 16.0% 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
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
--------- --------- --------- --------- ---------
Net Income (Loss) as reported. . . . . $ 12,130 $ 13,441 $ 19,289 $ 12,893 $ 13,385
Deduct: Income (Loss) from
Discontinued Ops, net of income taxes (4) 66 5,632 - -
--------- --------- --------- --------- ---------
Income (Loss) from
Continuing Operations . . . . . . . 12,134 13,375 13,657 12,893 13,385
Change in accounting method. . . . . . - (1,014) - - -
SFAS 150 gain on stock call option . . - (2,214) - - -
--------- --------- --------- --------- ---------
Total Special Charges (Income) . . - (3,228) - - -
After Tax Effect of Special
Charges (Income) . . . . . . . . - (2,520) - - -
--------- --------- --------- --------- ---------
Net Income from Continuing
Operations Before
Tax Effected Special Charges. . . . $ 12,134 $ 10,855 $ 13,657 $ 12,893 $ 13,385
========= ========= ========= ========= =========
Stock Compensation Expense . . . . 1,154 915 1,119 1,560 1,472
After Tax Effect Stock
Compensation Expense. . . . . . 785 622 761 1,061 1,001
--------- --------- --------- --------- ---------
Net Income from Continuing
Operations Before Tax
Effected Special Charges
& Stock Compensation. . . . . . . . $ 12,919 $ 11,477 $ 14,418 $ 13,954 $ 14,386
========= ========= ========= ========= =========
Earnings Per Share from
Continuing Operations Before
Tax Effected Special Charges. . . . $ 0.38 $ 0.36 $ 0.45 $ 0.42 $ 0.43
========= ========= ========= ========= =========
Earnings Per Share from
Continuing Operations
Before Tax Effected Special
Charges & Stock Compensation. . . . $ 0.41 $ 0.38 $ 0.47 $ 0.45 $ 0.46
========= ========= ========= ========= =========
Diluted Average Common
Shares Outstanding. . . . . . . . . 31,720,959 31,059,431 30,501,615 31,041,763 31,014,374
--------- --------- --------- --------- ---------
EPS from Continuing Operations Before Special
Charges & Stock Compensation (a) (b)
- -----------------------------------------------------------
(In thousands, except share and per share amounts)
Year Year
Three Months Ended Ended Ended
------------------ ----- -----
Sep-04 Dec-04 Mar-05 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Net Income (Loss) as reported. . . . . $ 12,043 $ 14,903 $ 11,785 $ 56,426 $ 53,224
Deduct: Income (Loss) from
Discontinued Ops, net of income taxes - - - 5,592 -
--------- --------- --------- --------- ---------
Income (Loss) from
Continuing Operations . . . . . . . 12,043 14,903 11,785 50,834 53,224
Change in accounting method. . . . . . - - - (1,014) -
SFAS 150 gain on stock call option . . - - - (2,214) -
--------- --------- --------- --------- ---------
Total Special Charges (Income) . . - - - (3,228) -
After Tax Effect of Special
Charges (Income). . . . . . . . - - - (2,520) -
--------- --------- --------- --------- ---------
Net Income from Continuing
Operations Before
Tax Effected Special Charges . . . . $ 12,043 $ 14,903 $ 11,785 $ 48,314 $ 53,224
========= ========= ========= ========= =========
Stock Compensation
Expense . . . . . . . . . . . 1,351 2,112 2,177 4,219 6,495
After Tax Effect Stock
Compensation Expense. . . . . 905 1,415 1,361 2,869 4,382
--------- --------- --------- --------- ---------
Net Income from Continuing
Operations Before Tax
Effected Special Charges
& Stock Compensation. . . . . . . $ 12,948 $ 16,318 $ 13,146 $ 51,183 $ 57,606
========= ========= ========= ========= =========
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges . . . . . . . . . $ 0.39 $ 0.48 $ 0.38 $ 1.55 $ 1.72
========= ========= ========= ========= =========
Earnings Per Share from
Continuing Operations
Before Tax Effected
Special Charges and
Stock Compensation. . . . . . . . $ 0.42 $ 0.53 $ 0.43 $ 1.63 $ 1.86
========= ========= ========= ========= =========
Diluted Average Common Shares
Outstanding . . . . . . . . . . . 30,988,259 30,794,808 30,809,620 31,430,398 30,961,108
--------- --------- --------- --------- ---------
<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
------------------
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
--------- --------- --------- --------- ---------
Earnings Before Interest and Taxes . . $ 25,567 $ 25,611 $ 27,689 $ 26,551 $ 27,348
SFAS 150 gain on stock call option . . - (2,214) - - -
--------- --------- --------- --------- ---------
Total Special Charges. . . . . - (2,214) - - -
Amortization . . . . . . . . . . . . . 851 792 889 734 717
Depreciation . . . . . . . . . . . . . 4,002 3,874 3,976 4,125 3,989
--------- --------- --------- --------- ---------
EBITDA from Continuing Operations
Before Special Charges. . . . . . . $ 30,420 $ 28,063 $ 32,554 $ 31,410 $ 32,054
========= ========= ========= ========= =========
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands) Year Year
Three Months Ended Ended Ended
------------------ ----- -----
Sep-04 Dec-04 Mar-05 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Earnings Before Interest and Taxes . . $ 25,838 $ 27,615 $ 24,481 $ 103,464 $ 107,352
SFAS 150 gain on stock call option . . - - - (2,214) -
--------- --------- --------- --------- ---------
Total Special Charges. . . . . - - - (2,214) -
Amortization . . . . . . . . . . . . . 708 850 891 3,301 3,009
Depreciation . . . . . . . . . . . . . 3,897 4,137 3,846 15,793 16,148
--------- --------- --------- --------- ---------
EBITDA from Continuing Operations
Before Special Charges. . . . . . . $ 30,443 $ 32,602 $ 29,218 $ 120,344 $ 126,509
========= ========= ========= ========= =========
<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
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
--------- --------- --------- --------- ---------
Net cash flow provided by
operating activities . . . . . . . . $ 25,613 $ 17,249 $ 29,158 $ 5,977 $ 28,153
Capital expenditures, net . . . . . . . 1,722 2,790 5,213 782 1,662
--------- --------- --------- --------- ---------
Owner Earnings. . . . . . . . . . . . . $ 23,891 $ 14,459 $ 23,945 $ 5,195 $ 26,491
========= ========= ========= ========= =========
Adjustment for Bond Interest assumed to be paid quarterly
- ---------------------------------------------------------
Owner Earnings. . . . . . . . . . . . . $ 23,891 $ 14,459 $ 23,945 $ 5,195 $ 26,491
Assumed if Bond Interest was
paid quarterly . . . . . . . . . . . (6,900) 6,900 (6,900) 6,900 (6,900)
--------- --------- --------- --------- ---------
Adjusted Owner Earnings . . . . . . . . $ 16,991 $ 21,359 $ 17,045 $ 12,095 $ 19,591
========= ========= ========= ========= =========
Owners Earnings (b)
- -------------------
(In thousands) Year Year
Three Months Ended Ended Ended
------------------ ----- -----
Sep-04 Dec-04 Mar-05 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Net cash flow provided by
operating activities . . . . . . . . $ 22,978 $ 28,169 $ 2,023 $ 91,417 $ 85,277
Capital expenditures, net . . . . . . . 768 5,322 2,990 10,704 8,534
--------- --------- --------- --------- ---------
Owner Earnings. . . . . . . . . . . . . $ 22,210 $ 22,847 $ (967) $ 80,713 $ 76,743
========= ========= ========= ========= =========
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------------------
Owner Earnings. . . . . . . . . . . . . $ 22,210 $ 22,847 $ (967) $ 80,713 $ 76,743
Assumed if Bond Interest was
paid quarterly . . . . . . . . . . . 6,900 (6,900) 6,900 - -
--------- --------- --------- --------- ---------
Adjusted Owner Earnings . . . . . . . . $ 29,110 $ 15,947 $ 5,933 $ 80,713 $ 76,743
========= ========= ========= ========= =========
<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.