EARNINGS ANNOUNCEMENT
DENVER, COLORADO
FEBRUARY 9TH, 2005
FOR IMMEDIATE RELEASE
FOURTH QUARTER DILUTED EARNINGS PER SHARE $0.48
EARNINGS PER SHARE FOR THE YEAR $1.72
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 fourth quarter sales of $ 172.1
million, a 6% increase over the same period in 2003. Revenues reflected strong
demand in its Advanced Surface Finishing business, combined with the favorable
impact of foreign currency.
Sales for the year ended December 31, 2004 were $ 660.8 compared with $ 619.9 in
the prior year, a 7% increase.
Diluted earnings per share of $0.48 were $0.03 more than the $0.45 per share
from continuing operations in 2003. Earnings from continuing operations for the
quarter of $14.9 million were 9% more than a year ago.
Total reported earnings per share for the fourth quarter last year was $0.63.
This included earnings of $0.18 per share from discontinued operations arising
from the gain on the disposal of Eurocir. Our reported earnings per share for
the year ended December 2003 of $1.80 included the abovementioned $0.18 per
share and also the favorable cumulative effect of an accounting change amounting
to $0.03 per share. Management continues to believe these items are not
representative of the performance of the business. In the case of the gain in
discontinued operations this is a partial recovery of a previously written-off
item. The gain from the accounting change resulted from a stock buy back
transaction that was completely non-operational and non-continuing. Hence our
earnings in last year from continuing operations and before the cumulative
effect of the accounting change were $0.45 for the quarter and $1.59 for the
year.
Earnings for the year of $53.2 million are up 7% over last year's $49.8 million
and earnings per share for the year of $1.72 are 8% higher than the prior year's
$1.59 earnings per share from continuing operations and before the cumulative
effect of accounting change in last year. *Owner Earnings, a measure of free
cash flow (defined below and shown in BOLD in the attached Condensed
Consolidated Summary of Cash Flows), were $22.8 million for the quarter ended
December 31, 2004. Owner Earnings for the year were $76.7 million. Cash
retained as of December 31, 2004 is $137.8 million.
Several items affected the current quarter.
The tax rate was adjusted to reflect a year to date 31.5% effective tax rate,
down from the 32 % in the first two quarters of the year and down from the 33%
rate used in the third quarter of the year. This resulted from an overseas tax
planning initiative late in this year. This increased earnings by $0.03 per
share in the quarter.
The Printing Solutions Americas direct selling strategy noted last quarter and
restructuring costs in Europe impacted the quarter unfavorably by $0.05 per
share.
Dan Leever Chairman and CEO said "This quarter was similar to the recent
quarters we have experienced. We are gratified that the Advanced Surface
Finishing unit performed very well. In our printing business we celebrated the
dramatic turn around in the ColorSpan unit. ColorSpan has enjoyed two very
successful product launches. Our biggest challenge is keeping up with the
demand. This is a testament to the will and motivation of the ColorSpan team. We
experienced costs related to restructuring in printing Europe and were still
working through inventory in the supply chain in printing Americas. Whereas
these items hurt us this quarter, we expect they will benefit us in the longer
term. Our Owner Earnings were a solid $22.8 million for the quarter and $76.7
million for the year leaving us with $137.8 million in cash. We have shown our
cash generation is predictable and sustainable. This gives us significant
options to consider. Currently we are leaning towards holding the cash in
anticipation of mid 2006 when the premium on our bonds reduces dramatically. We
continue to invest heavily in growth initiatives. We are hoping 2005 is the year
we start to see the impact of these initiatives on revenues."
Comments on Fourth Quarter Income Statement.
- -------------------------------------------------
Sales in Advanced Surface Finishing of $100.7 million were up 9.4% (4.4% after
currency) over the same period in 2003, primarily driven by strong revenue
growth in demand in Asia and North America. Operating profit of $16.0 million
was 18.2% higher than the prior year reflecting expected earnings leverage on
higher revenue.
Printing Solutions sales of $71.4 million were up 2.0% (down 0.8% after
currency) with growth in key business segments in North America, weak demand in
Europe and the inventory effect of the direct marketing strategy in North
America. Operating profit of $10.2 million was down 21.6% from the prior period
due to restructuring charges incurred in Europe, the margin affect of weaker
sales in Europe and the direct strategy in North America.
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
FEBRUARY 9TH, 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 Year Ended
-------------------- ------------
Dec 31st Dec 31st Dec 31st Dec 31st
2004 2003 2004 2003
-------------------- ------------ ------------ ------------
Proprietary sales . . . . . . . . . . . . . . . . $ 161,014 $ 151,237 $ 619,135 $ 581,745
Other sales . . . . . . . . . . . . . . . . . . . 11,121 10,869 41,650 38,141
-------------------- ------------ ------------ ------------
Total net sales . . . . . . . . . . . . . . . . . $ 172,135 $ 162,106 $ 660,785 $ 619,886
-------------------- ------------ ------------ ------------
Gross margin. . . . . . . . . . . . . . . . . . . 81,266 74,363 313,241 290,615
GM %. . . . . . . . . . . . . . . . . . . . . . 47.2% 45.9% 47.4% 46.9%
Selling, technical and administrative . . . . . . 49,074 42,537 185,915 171,510
Research and development. . . . . . . . . . . . . 5,988 5,279 21,916 19,955
-------------------- ------------ ------------ ------------
Operating profit. . . . . . . . . . . . . . . . . 26,204 26,547 105,410 99,150
Other income (expense), net . . . . . . . . . . . 1,411 1,142 1,942 4,314
Interest expense, net . . . . . . . . . . . . . . (7,073) (7,585) (29,615) (30,178)
-------------------- ------------ ------------ ------------
Earnings before income taxes and discontinued
operations. . . . . . . . . . . . . . . . . . . 20,542 20,104 77,737 73,286
Income tax (expense). . . . . . . . . . . . . . . (5,639) (6,447) (24,513) (23,466)
-------------------- ------------ ------------ ------------
Earnings from continuing operations . . . . . . . 14,903 13,657 53,224 49,820
Discontinued operations . . . . . . . . . . . . . - 5,632 - 5,592
Cumulative effect of accounting change. . . . . . - 0 - 1,014
-------------------- ------------ ------------ ------------
Net earnings. . . . . . . . . . . . . . . . . . . $ 14,903 $ 19,289 $ 53,224 $ 56,426
==================== ============ ============ ============
Continuing operations per share . . . . . . . . . $ 0.48 $ 0.45 $ 1.72 $ 1.59
Discontinued operations per share . . . . . . . . $ 0.00 $ 0.18 $ 0.00 $ 0.18
Cumulative effect of accounting change per share. $ 0.00 $ 0.00 $ 0.00 $ 0.03
-------------------- ------------ ------------ ------------
Diluted earnings per share. . . . . . . . . . . . $ 0.48 $ 0.63 $ 1.72 $ 1.80
==================== ============ ============ ============
Diluted average common shares outstanding . . . . 30,794,808 30,501,615 30,961,108 31,430,398
==================== ============ ============ ============
MACDERMID, INCORPORATED
SALES AND MARGINS BY REGION
$ in thousands
Three Months Ended Year Ended
-------------------- ------------
Dec 31st Dec 31st Dec 31st Dec 31st
2004 2003 2004 2003
-------------------- ------------ ---------- ----------
AMERICAS
Total net sales . . $ 69,361 $ 66,510 $ 269,779 $ 266,391
Operating profit. . $ 11,320 $ 10,697 $ 45,229 $ 41,430
OP %. . . . . . . . 16.3% 16.1% 16.8% 15.6%
EUROPE
Total net sales . . $ 62,618 $ 57,898 $ 240,063 $ 220,568
Operating profit. . $ 6,999 $ 7,629 $ 29,075 $ 30,386
OP %. . . . . . . . 11.2% 13.2% 12.1% 13.8%
ASIA
Total net sales . . $ 40,156 $ 37,698 $ 150,943 $ 132,927
Operating profit. . $ 7,885 $ 8,221 $ 31,106 $ 27,334
OP %. . . . . . . . 19.6% 21.8% 20.6% 20.6%
CONSOLIDATED TOTAL
Total net sales . . $ 172,135 $ 162,106 $ 660,785 $ 619,886
Operating profit. . $ 26,204 $ 26,547 $ 105,410 $ 99,150
OP %. . . . . . . . 15.2% 16.4% 16.0% 16.0%
MACDERMID, INCORPORATED
SALES AND MARGINS BY GROUP
$ in thousands
Three Months Ended Year Ended
-------------------- ------------
Dec 31st Dec 31st Dec 31st Dec 31st
2004 2003 2004 2003
-------------------- ------------ ---------- ----------
ADVANCED SURFACE FINISHING
Total net sales . . . . . . $ 100,723 $ 92,091 $ 386,723 $ 348,131
Operating profit. . . . . . $ 15,986 $ 13,519 $ 62,728 $ 50,858
OP %. . . . . . . . . . . . 15.9% 14.7% 16.2% 14.6%
PRINTING SOLUTIONS
Total net sales . . . . . . $ 71,412 $ 70,015 $ 274,062 $ 271,755
Operating profit. . . . . . $ 10,218 $ 13,028 $ 42,682 $ 48,292
OP %. . . . . . . . . . . . 14.3% 18.6% 15.6% 17.8%
CONSOLIDATED TOTAL
Total net sales . . . . . . $ 172,135 $ 162,106 $ 660,785 $ 619,886
Operating profit. . . . . . $ 26,204 $ 26,547 $ 105,410 $ 99,150
OP %. . . . . . . . . . . . 15.2% 16.4% 16.0% 16.0%
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
$ in thousands
Dec. 31st Dec. 31st
2004 2003
----------- -----------
(Unaudited)
Cash and cash equivalents . . . . . . . . $ 137,829 $ 61,294
Accounts receivable, net. . . . . . . . . 142,455 137,149
Inventories, net. . . . . . . . . . . . . 80,445 75,775
Other current assets. . . . . . . . . . . 28,486 31,097
----------- -----------
Current Assets . . . . . . . . . . . . 389,215 305,315
Property, plant & equipment, net. . . . . 110,463 113,642
Goodwill. . . . . . . . . . . . . . . . . 194,287 194,200
Intangibles . . . . . . . . . . . . . . . 28,434 30,061
Other assets, net . . . . . . . . . . . . 51,320 54,017
----------- -----------
Total assets . . . . . . . . . . . . . $ 773,719 $ 697,235
=========== ===========
Payables and accruals . . . . . . . . . . $ 128,359 $ 124,125
Short-term debt . . . . . . . . . . . . . 753 1,498
----------- -----------
Current Liabilities. . . . . . . . . . 129,112 125,623
Long-term debt. . . . . . . . . . . . . . 301,077 301,203
Other long-term liabilities . . . . . . . 39,499 31,397
----------- -----------
Total Liabilities. . . . . . . . . . . 469,688 458,223
Shareholders' equity. . . . . . . . . . . 304,031 239,012
----------- -----------
Total liabilities & shareholders' equity. $ 773,719 $ 697,235
=========== ===========
Debt to total capital . . . . . . . . . . 50% 56%
MACDERMID, INCORPORATED
CONDENSED CONSOLIDATED SUMMARY OF CASH FLOWS
(Unaudited)
$ in thousands
Three Months Ended Year Ended
-------------------- ------------
Dec 31st Dec 31st Dec 31st Dec 31st
2004 2003 2004 2003
-------------------- ------------ ---------- ----------
Net earnings . . . . . . . . . . . . . . . . $ 14,903 $ 19,289 $ 53,224 $ 56,426
Earnings from discontinued operations. . . . - 5,632 - 5,592
-------------------- ------------ ---------- ----------
Earnings from continuing operations. . . . . 14,903 13,657 53,224 50,834
Depreciation . . . . . . . . . . . . . . . . 4,137 3,976 16,148 15,793
Amortization . . . . . . . . . . . . . . . . 850 889 3,009 3,301
Provision for bad debt . . . . . . . . . . . 538 (953) 3,562 2,606
Stock compensation expense . . . . . . . . . 2,162 1,119 6,545 4,219
Deferred taxes . . . . . . . . . . . . . . . 7,110 12,094 5,679 12,094
Working capital changes. . . . . . . . . . . (1,531) 2,168 (2,890) 5,705
Discontinued operations. . . . . . . . . . . - (3,792) - (3,135)
-------------------- ------------ ---------- ----------
Cash from operations . . . . . . . . . . . . 28,169 29,158 85,277 91,417
Capital spending, net. . . . . . . . . . . . (5,322) (5,213) (8,534) (10,704)
-------------------- ------------ ---------- ----------
OWNER EARNINGS** . . . . . . . . . . . . . . 22,847 23,945 76,743 80,713
Dividends Paid . . . . . . . . . . . . . . . (1,212) (908) (3,635) (3,754)
Increase/(decrease) in debt. . . . . . . . . (44) 3,255 (1,032) (3,277)
Treasury shares. . . . . . . . . . . . . . . 13 - 31 (51,753)
Other. . . . . . . . . . . . . . . . . . . . 4,172 4,897 4,428 7,346
-------------------- ------------ ---------- ----------
Increase/(decrease) in cash. . . . . . . . . $ 25,776 $ 31,189 $ 76,535 $ 29,275
==================== ============ ========== ==========
**Note: Pro forma owner earnings
adjusted for semi-annual bond interest
payments would have been as follows:. $ 15,947 $ 17,045 $ 76,743 $ 80,713
==================== ============ ========== ==========
MACDERMID, INC.
REGULATION G: GAAP TO NON-GAAP RECONCILIATION
Gross Profit Before Special Charges (a) (b)
- -------------------------------------------
(In thousands)
Three Months Ended
---------------------------------------------------------------------------
Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
-------------------- --------- --------- --------- --------- ---------
Net Sales as reported . . . . . . . . . . . $ 152,803 $155,320 $149,657 $162,106 $162,012 $165,053
-------------------- --------- --------- --------- --------- ---------
Gross Profit as reported. . . . . . . . . . $ 72,542 $ 73,794 $ 69,916 $ 74,363 $ 77,526 $ 78,074
Add: Special Charges. . . . . . . . . . . . - - - - - -
-------------------- --------- --------- --------- --------- ---------
Gross Profit Before Special Charges . . . . $ 72,542 $ 73,794 $ 69,916 $ 74,363 $ 77,526 $ 78,074
-------------------- --------- --------- --------- --------- ---------
GP % Before Special Charges . . . . . . . . 47.5% 47.5% 46.7% 45.9% 47.9% 47.3%
Gross Profit Before Special Charges (a) (b)
- -------------------------------------------
(In thousands)
Year Year
Three Months Ended Ended Ended
Sep-04 Dec-04 Dec-03 Dec-04
--------- --------- --------- ---------
Net Sales as reported . . . . . . . . . . . $161,585 $172,135 $619,886 $660,785
--------- --------- --------- ---------
Gross Profit as reported. . . . . . . . . . $ 76,375 $ 81,266 $290,615 $313,241
Add: Special Charges. . . . . . . . . . . . - - - -
--------- --------- --------- ---------
Gross Profit Before Special Charges . . . . $ 76,375 $ 81,266 $290,615 $313,241
--------- --------- --------- ---------
GP % Before Special Charges . . . . . . . . 47.3% 47.2% 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
----------------------------------------------------------------
Mar-03 Jun-03 Sep-03 Dec-03 Mar-04
-------------------- --------- --------- --------- ---------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $ 152,803 $155,320 $149,657 $162,106 $162,012
-------------------- --------- --------- --------- ---------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 24,597 $ 25,567 $ 25,611 $ 27,689 $ 26,551
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . (207) (132) (2,833) (1,142) 258
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - - - - -
-------------------- --------- --------- --------- ---------
Operating Profit Before Special Charges. . . . . . . . . . . . . $ 24,390 $ 25,435 $ 22,778 $ 26,547 $ 26,809
==================== ========= ========= ========= =========
% OP Before Special Charges to Net Sales . . . . . . . . . . . . 16.0% 16.4% 15.2% 16.4% 16.5%
Operating Profit Before Amortization and Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Year Year
Three Months Ended Ended Ended
Jun-04 Sep-04 Dec-04 Dec-03 Dec-04
--------- --------- --------- --------- ---------
Net Sales per above. . . . . . . . . . . . . . . . . . . . . . . $165,053 $161,585 $172,135 $619,886 $660,785
--------- --------- --------- --------- ---------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 27,348 $ 25,838 $ 27,615 $103,464 $107,352
Add: Other (Income) Expense. . . . . . . . . . . . . . . . . . . (697) (92) (1,411) (4,314) (1,942)
Add: Special Charges . . . . . . . . . . . . . . . . . . . . . . - - - - -
--------- --------- --------- --------- ---------
Operating Profit Before Special Charges. . . . . . . . . . . . . $ 26,651 $ 25,746 $ 26,204 $ 99,150 $105,410
========= ========= ========= ========= =========
% OP Before Special Charges to Net Sales . . . . . . . . . . . . 16.1% 15.9% 15.2% 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
--------------------------------------------------------------------------
Mar-03 Jun-03 Sep-03 Dec-03 Mar-04
-------------------- ------------ ------------ ----------- -----------
Net Income (Loss) as reported . . . . . . . . . . $ 11,566 $ 12,130 $ 13,441 $ 19,289 $ 12,893
Deduct: Income (Loss) from Discontinued Ops,
net of income taxes. . . . . . . . (102) (4) 66 5,632 -
-------------------- ------------ ------------ ----------- -----------
Income (Loss) from Continuing Operations. . . . . 11,668 12,134 13,375 13,657 12,893
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 . . . . . . . . . $ 11,668 $ 12,134 $ 10,855 $ 13,657 $ 12,893
==================== ============ ============ =========== ===========
Stock Compensation Expense. . . . . . . . . . 1,031 1,154 915 1,119 1,560
After Tax Effect Stock Compensation Expense . 701 785 622 761 1,061
-------------------- ------------ ------------ ----------- -----------
Net Income from Continuing Operations Before Tax
Effected Special Charges & Stock Compensation . . $ 12,369 $ 12,919 $ 11,477 $ 14,418 $ 13,954
==================== ============ ============ =========== ===========
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges . . . . . . $ 0.36 $ 0.38 $ 0.36 $ 0.45 $ 0.42
==================== ============ ============ =========== ===========
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation . . . . . . . . . . . . . . . . . $ 0.38 $ 0.41 $ 0.38 $ 0.47 $ 0.45
==================== ============ ============ =========== ===========
Diluted Average Common Shares Outstanding . . . . 32,467,172 31,720,959 31,059,431 30,501,615 31,041,763
- ------------------------------------------------- -------------------- ------------ ------------ ----------- -----------
Year Year
Three Months Ended Ended Ended
Jun-04 Sep-04 Dec-04 Dec-03 Dec-04
----------- ----------- ----------- ------------ -----------
Net Income (Loss) as reported . . . . . . . . . . $ 13,385 $ 12,043 $ 14,903 $ 56,426 $ 53,224
Deduct: Income (Loss) from Discontinued Ops,
net of income taxes. . . . . . . . - - - 5,592 -
----------- ----------- ----------- ------------ -----------
Income (Loss) from Continuing Operations. . . . . 13,385 12,043 14,903 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 . . . . . . . . . $ 13,385 $ 12,043 $ 14,903 $ 48,314 $ 53,224
=========== =========== =========== ============ ===========
Stock Compensation Expense. . . . . . . . . . 1,472 1,351 2,112 4,219 6,495
After Tax Effect Stock Compensation Expense . 1,001 905 1,415 2,869 4,382
----------- ----------- ----------- ------------ -----------
Net Income from Continuing Operations Before Tax
Effected Special Charges & Stock Compensation . . $ 14,386 $ 12,948 $ 16,318 $ 51,183 $ 57,606
=========== =========== =========== ============ ===========
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges . . . . . . $ 0.43 $ 0.39 $ 0.48 $ 1.55 $ 1.72
=========== =========== =========== ============ ===========
Earnings Per Share from Continuing Operations
Before Tax Effected Special Charges and Stock
Compensation . . . . . . . . . . . . . . . . . $ 0.46 $ 0.42 $ 0.53 $ 1.63 $ 1.86
=========== =========== =========== ============ ===========
Diluted Average Common Shares Outstanding . . . . 31,014,374 30,988,259 30,794,808 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
--------------------------------------------------------
Mar-03 Jun-03 Sep-03 Dec-03 Mar-04
------------------- ------- -------- ------- -------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $ 24,597 $25,567 $25,611 $27,689 $26,551
SFAS 150 gain on stock call option . . . . . . . . . . . . . . . - - (2,214) - -
------------------- ------- -------- ------- -------
Total Special Charges. . . . . . . . . . . . . . . . . . - - (2,214) - -
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . 769 851 792 889 734
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 3,941 4,002 3,874 3,976 4,125
------------------- ------- -------- ------- -------
EBITDA from Continuing Operations Before
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $ 29,307 $30,420 $28,063 $32,554 $31,410
=================== ======= ======== ======= =======
EBITDA from Continuing Operations Before Special Charges (a) (b)
- ----------------------------------------------------------------
(In thousands)
Year Year
Three Months Ended Ended Ended
Jun-04 Sep-04 Dec-04 Dec-03 Dec-04
------- ------- ------- --------- --------
Earnings Before Interest and Taxes . . . . . . . . . . . . . . . $27,348 $25,838 $27,615 $103,464 $107,352
SFAS 150 gain on stock call option . . . . . . . . . . . . . . . - - - (2,214) -
------- ------- ------- --------- --------
Total Special Charges. . . . . . . . . . . . . . . . . . - - - (2,214) -
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . 717 708 850 3,301 3,009
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 3,989 3,897 4,137 15,793 16,148
------- ------- ------- --------- --------
EBITDA from Continuing Operations Before
Special Charges . . . . . . . . . . . . . . . . . . . . . . . $32,054 $30,443 $32,602 $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
-------------------------------------------------------------------
Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04
------------------- -------- ------- -------- ------- --------
Net cash flow provided by operating activities . . . . . . $ 19,397 $25,613 $17,249 $29,158 $ 5,977 $28,153
Capital expenditures, net. . . . . . . . . . . . . . . . . 979 1,722 2,790 5,213 782 1,662
------------------- -------- ------- -------- ------- --------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 18,418 $23,891 $14,459 $23,945 $ 5,195 $26,491
=================== ======== ======= ======== ======= ========
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $ 18,418 $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 (6,900)
------------------- -------- ------- -------- ------- --------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $ 25,318 $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 Dec-03 Dec-04
------- -------- ------- -------
Net cash flow provided by operating activities . . . . . . $22,978 $28,169 $91,417 $85,277
Capital expenditures, net. . . . . . . . . . . . . . . . . 768 5,322 10,704 8,534
------- -------- ------- -------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $22,210 $22,847 $80,713 $76,743
======= ======== ======= =======
Adjustment for Bond Interest assumed to be paid quarterly
- ----------------------------------------------------------
Owner Earnings . . . . . . . . . . . . . . . . . . . . . . $22,210 $22,847 $80,713 $76,743
Assumed if Bond Interest was paid quarterly. . . . . . . . 6,900 (6,900) - -
------- -------- ------- -------
Adjusted Owner Earnings. . . . . . . . . . . . . . . . . . $29,110 $15,947 $80,713 $76,743
- ---------------------------------------------------------- ======= ======== ======= =======
<FN>
(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.