• | Net income from continuing operations for the second quarter of fiscal 2014 was $6.5 million, or $0.22 per diluted share; adjusted net income from continuing operations for the second quarter of fiscal 2014, excluding certain items, was $11.3 million, or $0.39 per diluted share, a 39% improvement over the prior-year quarter |
• | Company raises full-year fiscal 2014 adjusted net income guidance to a range of $2.23 to $2.28 per diluted share |
• | worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Company’s major product markets or countries where the Company has operations; |
• | the effectiveness of the Company’s efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques; |
• | competitive factors, including intense price competition; |
• | fluctuations in the value of currencies in areas where the Company operates; |
• | volatility of prices and availability of the supply of energy and raw materials that are critical to the manufacture of the Company’s products, particularly plastic resins derived from oil and natural gas; |
• | changes in customer demand and requirements; |
• | effectiveness of the Company to achieve the level of cost savings, productivity improvements, growth and other benefits anticipated from acquisitions, joint ventures and restructuring initiatives; |
• | escalation in the cost of providing employee health care; |
• | uncertainties regarding the resolution of pending and future litigation and other claims; |
• | the performance of the global automotive market as well as other markets served; |
• | further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products; and |
• | operating problems with our information systems as a result of system security failures such as viruses, computer "hackers" or other causes. |
Three months ended February 28, | Six months ended February 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Unaudited (In thousands, except per share data) | |||||||||||||||
Net sales | $ | 588,508 | $ | 515,440 | $ | 1,173,905 | $ | 1,047,525 | |||||||
Cost of sales | 514,209 | 452,241 | 1,020,498 | 912,659 | |||||||||||
Selling, general and administrative expenses | 58,713 | 52,019 | 116,111 | 103,335 | |||||||||||
Restructuring expense | 1,727 | 1,669 | 3,505 | 3,606 | |||||||||||
Asset impairment | 104 | — | 104 | 498 | |||||||||||
Curtailment (gain) loss | — | — | — | 333 | |||||||||||
Operating income | 13,755 | 9,511 | 33,687 | 27,094 | |||||||||||
Interest expense | 2,488 | 1,925 | 4,679 | 3,693 | |||||||||||
Interest income | (81 | ) | (119 | ) | (143 | ) | (326 | ) | |||||||
Foreign currency transaction (gains) losses | 1,466 | (40 | ) | 2,148 | 539 | ||||||||||
Other (income) expense, net | (193 | ) | (211 | ) | (271 | ) | (347 | ) | |||||||
Income from continuing operations before taxes | 10,075 | 7,956 | 27,274 | 23,535 | |||||||||||
Provision (benefit) for U.S. and foreign income taxes | 3,427 | (4,350 | ) | 7,995 | (913 | ) | |||||||||
Income from continuing operations | 6,648 | 12,306 | 19,279 | 24,448 | |||||||||||
Income (loss) from discontinued operations, net of tax | 347 | (282 | ) | 3,002 | (279 | ) | |||||||||
Net income | 6,995 | 12,024 | 22,281 | 24,169 | |||||||||||
Noncontrolling interests | (136 | ) | (239 | ) | (351 | ) | (605 | ) | |||||||
Net income attributable to A. Schulman, Inc. | $ | 6,859 | $ | 11,785 | $ | 21,930 | $ | 23,564 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Basic | 29,059 | 29,293 | 29,038 | 29,255 | |||||||||||
Diluted | 29,277 | 29,725 | 29,240 | 29,668 | |||||||||||
Basic earnings per share attributable to A. Schulman, Inc. | |||||||||||||||
Income from continuing operations | $ | 0.23 | $ | 0.41 | $ | 0.65 | $ | 0.82 | |||||||
Income (loss) from discontinued operations | 0.01 | (0.01 | ) | 0.11 | (0.01 | ) | |||||||||
Net income attributable to A. Schulman, Inc. | $ | 0.24 | $ | 0.40 | $ | 0.76 | $ | 0.81 | |||||||
Diluted earnings per share attributable to A. Schulman, Inc. | |||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.41 | $ | 0.65 | $ | 0.80 | |||||||
Income (loss) from discontinued operations | 0.01 | (0.01 | ) | 0.10 | (0.01 | ) | |||||||||
Net income attributable to A. Schulman, Inc. | $ | 0.23 | $ | 0.40 | $ | 0.75 | $ | 0.79 | |||||||
Cash dividends per common share | $ | 0.200 | $ | 0.195 | $ | 0.400 | $ | 0.390 |
February 28, 2014 | August 31, 2013 | ||||||
Unaudited (In thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 90,053 | $ | 134,054 | |||
Accounts receivable, less allowance for doubtful accounts of $10,955 at February 28, 2014 and $10,434 at August 31, 2013 | 381,872 | 310,749 | |||||
Inventories, lower of average cost or market | 307,122 | 261,658 | |||||
Prepaid expenses and other current assets | 44,015 | 41,224 | |||||
Total current assets | 823,062 | 747,685 | |||||
Property, plant and equipment, at cost: | |||||||
Land and improvements | 26,892 | 27,954 | |||||
Buildings and leasehold improvements | 158,841 | 146,647 | |||||
Machinery and equipment | 389,424 | 356,144 | |||||
Furniture and fixtures | 41,399 | 39,065 | |||||
Construction in progress | 9,877 | 7,149 | |||||
Gross property, plant and equipment | 626,433 | 576,959 | |||||
Accumulated depreciation | 392,325 | 366,438 | |||||
Net property, plant and equipment | 234,108 | 210,521 | |||||
Deferred charges and other noncurrent assets | 54,853 | 48,723 | |||||
Goodwill | 185,379 | 139,526 | |||||
Intangible assets, net | 119,539 | 91,887 | |||||
Total assets | $ | 1,416,941 | $ | 1,238,342 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 292,693 | $ | 265,477 | |||
U.S. and foreign income taxes payable | 7,782 | 6,423 | |||||
Accrued payroll, taxes and related benefits | 42,926 | 43,072 | |||||
Other accrued liabilities | 52,661 | 48,689 | |||||
Short-term debt | 20,572 | 8,373 | |||||
Total current liabilities | 416,634 | 372,034 | |||||
Long-term debt | 302,981 | 207,435 | |||||
Pension plans | 104,247 | 98,599 | |||||
Deferred income taxes | 23,865 | 20,873 | |||||
Other long-term liabilities | 26,174 | 24,657 | |||||
Total liabilities | 873,901 | 723,598 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $1 par value, authorized - 75,000 shares, issued - 48,179 shares at February 28, 2014 and 48,094 shares at August 31, 2013 | 48,179 | 48,094 | |||||
Additional paid-in capital | 265,285 | 263,158 | |||||
Accumulated other comprehensive income (loss) | 17,396 | 682 | |||||
Retained earnings | 584,523 | 574,370 | |||||
Treasury stock, at cost, 18,975 shares at February 28, 2014 and 18,940 shares at August 31, 2013 | (379,947 | ) | (378,927 | ) | |||
Total A. Schulman, Inc.’s stockholders’ equity | 535,436 | 507,377 | |||||
Noncontrolling interests | 7,604 | 7,367 | |||||
Total equity | 543,040 | 514,744 | |||||
Total liabilities and equity | $ | 1,416,941 | $ | 1,238,342 |
Six months ended February 28, | |||||||
2014 | 2013 | ||||||
Unaudited (In thousands) | |||||||
Operating from continuing and discontinued operations: | |||||||
Net income | $ | 22,281 | $ | 24,169 | |||
Adjustments to reconcile net income to net cash provided from (used in) operating activities: | |||||||
Depreciation | 16,419 | 15,023 | |||||
Amortization | 6,669 | 5,782 | |||||
Deferred tax provision | (2,895 | ) | (8,413 | ) | |||
Pension, postretirement benefits and other deferred compensation | 4,494 | 4,398 | |||||
Asset impairment | 104 | 498 | |||||
Curtailment (gain) loss | — | 333 | |||||
Gain on sale of assets from discontinued operations | (3,331 | ) | — | ||||
Changes in assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (21,283 | ) | (14,306 | ) | |||
Inventories | (13,107 | ) | (19,199 | ) | |||
Accounts payable | (15,534 | ) | (6,324 | ) | |||
Income taxes | 229 | (930 | ) | ||||
Accrued payroll and other accrued liabilities | 375 | 804 | |||||
Other assets and long-term liabilities | (3,100 | ) | (9,887 | ) | |||
Net cash provided from (used in) operating activities | (8,679 | ) | (8,052 | ) | |||
Investing from continuing and discontinued operations: | |||||||
Expenditures for property, plant and equipment | (16,541 | ) | (12,889 | ) | |||
Proceeds from the sale of assets | 4,738 | 8,008 | |||||
Business acquisitions, net of cash | (115,624 | ) | (36,360 | ) | |||
Net cash provided from (used in) investing activities | (127,427 | ) | (41,241 | ) | |||
Financing from continuing and discontinued operations: | |||||||
Cash dividends paid | (11,777 | ) | (11,713 | ) | |||
Increase (decrease) in short-term debt | 2,469 | 2,081 | |||||
Borrowings on long-term debt | 686,955 | 70,696 | |||||
Repayments on long-term debt | (583,914 | ) | (56,565 | ) | |||
Payment of debt issuance costs | (1,782 | ) | — | ||||
Issuances of stock, common and treasury | 276 | 1,394 | |||||
Redemptions of common stock | (361 | ) | (397 | ) | |||
Purchases of treasury stock | (1,116 | ) | (479 | ) | |||
Net cash provided from (used in) financing activities | 90,750 | 5,017 | |||||
Effect of exchange rate changes on cash | 1,355 | (59 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (44,001 | ) | (44,335 | ) | |||
Cash and cash equivalents at beginning of period | 134,054 | 124,031 | |||||
Cash and cash equivalents at end of period | $ | 90,053 | $ | 79,696 |
Three months ended February 28, 2014 | Cost of Sales | Gross margin | SG&A | Restructuring expense | Asset impairment | Operating income | Operating income per pound | Income tax expense (benefit) | Net income attributable to A. Schulman, Inc. | Diluted EPS | |||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | |||||||||||||||||||||||||||||||||||||||
As reported | $ | 514,209 | 12.6 | % | $ | 58,713 | $ | 1,727 | $ | 104 | $ | 13,755 | $ | 0.027 | $ | 3,427 | $ | 6,859 | $ | 0.23 | |||||||||||||||||||
Certain items: | |||||||||||||||||||||||||||||||||||||||
Asset write-downs (1) | — | — | — | (104 | ) | 104 | 34 | 70 | — | ||||||||||||||||||||||||||||||
Costs related to acquisitions (2) | (34 | ) | (1,818 | ) | — | — | 1,852 | 30 | 1,822 | 0.06 | |||||||||||||||||||||||||||||
Restructuring and related costs (3) | (137 | ) | (928 | ) | (1,727 | ) | — | 2,792 | 279 | 2,513 | 0.09 | ||||||||||||||||||||||||||||
Inventory step-up (4) | (782 | ) | — | — | — | 782 | — | 782 | 0.03 | ||||||||||||||||||||||||||||||
Tax benefits (charges) (5) | — | — | — | — | — | 426 | (426 | ) | (0.01 | ) | |||||||||||||||||||||||||||||
Loss (income) from discontinued operations | (347 | ) | (0.01 | ) | |||||||||||||||||||||||||||||||||||
Total certain items | $ | (953 | ) | 0.2 | % | $ | (2,746 | ) | $ | (1,727 | ) | $ | (104 | ) | $ | 5,530 | $ | 0.012 | $ | 769 | $ | 4,414 | $ | 0.16 | |||||||||||||||
As Adjusted | $ | 513,256 | 12.8 | % | $ | 55,967 | $ | — | $ | — | $ | 19,285 | $ | 0.039 | $ | 4,196 | $ | 11,273 | $ | 0.39 | |||||||||||||||||||
Percentage of Revenue | 9.5 | % | 3.3 | % | 1.9 | % | |||||||||||||||||||||||||||||||||
Three months ended February 28, 2013 | Cost of Sales | Gross margin | SG&A | Restructuring expense | Asset impairment | Operating income | Operating income per pound | Income tax expense (benefit) | Net income attributable to A. Schulman, Inc. | Diluted EPS | |||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | |||||||||||||||||||||||||||||||||||||||
As reported | $ | 452,241 | 12.3 | % | $ | 52,019 | $ | 1,669 | $ | — | $ | 9,511 | $ | 0.021 | $ | (4,350 | ) | $ | 11,785 | $ | 0.40 | ||||||||||||||||||
Certain items: | |||||||||||||||||||||||||||||||||||||||
Asset write-downs (1) | (404 | ) | — | — | — | 404 | — | 404 | 0.01 | ||||||||||||||||||||||||||||||
Costs related to acquisitions (2) | — | (675 | ) | — | — | 675 | 79 | 596 | 0.02 | ||||||||||||||||||||||||||||||
Restructuring and related costs (3) | — | — | (1,669 | ) | — | 1,669 | 349 | 1,320 | 0.04 | ||||||||||||||||||||||||||||||
Inventory step-up (4) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Tax benefits (charges) (5) | — | — | — | — | — | 6,160 | (6,160 | ) | (0.20 | ) | |||||||||||||||||||||||||||||
Loss (income) from discontinued operations | 282 | 0.01 | |||||||||||||||||||||||||||||||||||||
Total certain items | $ | (404 | ) | 0.1 | % | $ | (675 | ) | $ | (1,669 | ) | $ | — | $ | 2,748 | $ | 0.006 | $ | 6,588 | $ | (3,558 | ) | $ | (0.12 | ) | ||||||||||||||
As Adjusted | $ | 451,837 | 12.4 | % | $ | 51,344 | $ | — | $ | — | $ | 12,259 | $ | 0.027 | $ | 2,238 | $ | 8,227 | $ | 0.28 | |||||||||||||||||||
Percentage of Revenue | 10.0 | % | 2.4 | % | 1.6 | % |
Six months ended February 28, 2014 | Cost of Sales | Gross margin | SG&A | Restructuring expense | Asset impairment | Operating income | Operating income per pound | Income tax expense (benefit) | Net income attributable to A. Schulman, Inc. | Diluted EPS | |||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | |||||||||||||||||||||||||||||||||||||||
As reported | $ | 1,020,498 | 13.1 | % | $ | 116,111 | $ | 3,505 | $ | 104 | $ | 33,687 | $ | 0.034 | $ | 7,995 | $ | 21,930 | $ | 0.75 | |||||||||||||||||||
Certain items: | |||||||||||||||||||||||||||||||||||||||
Asset write-downs (1) | (108 | ) | — | — | (104 | ) | 212 | 34 | 178 | 0.01 | |||||||||||||||||||||||||||||
Costs related to acquisitions (2) | (34 | ) | (2,453 | ) | — | — | 2,487 | 125 | 2,370 | 0.08 | |||||||||||||||||||||||||||||
Restructuring and related costs (3) | (500 | ) | (2,159 | ) | (3,505 | ) | — | 6,164 | 601 | 5,852 | 0.20 | ||||||||||||||||||||||||||||
Inventory step-up (4) | (1,199 | ) | — | — | — | 1,199 | 98 | 1,101 | 0.04 | ||||||||||||||||||||||||||||||
Tax benefits (charges) (5) | — | — | — | — | — | 427 | (427 | ) | (0.02 | ) | |||||||||||||||||||||||||||||
Loss (income) from discontinued operations | (3,002 | ) | (0.10 | ) | |||||||||||||||||||||||||||||||||||
Total certain items | $ | (1,841 | ) | 0.1 | % | $ | (4,612 | ) | $ | (3,505 | ) | $ | (104 | ) | $ | 10,062 | $ | 0.010 | $ | 1,285 | $ | 6,072 | $ | 0.21 | |||||||||||||||
As Adjusted | $ | 1,018,657 | 13.2 | % | $ | 111,499 | $ | — | $ | — | $ | 43,749 | $ | 0.044 | $ | 9,280 | $ | 28,002 | $ | 0.96 | |||||||||||||||||||
Percentage of Revenue | 9.5 | % | 3.7 | % | 2.4 | % | |||||||||||||||||||||||||||||||||
Six months ended February 28, 2013 | Cost of Sales | Gross margin | SG&A | Restructuring expense | Asset impairment | Operating income | Operating income per pound | Income tax expense (benefit) | Net income attributable to A. Schulman, Inc. | Diluted EPS | |||||||||||||||||||||||||||||
(In thousands, except for %'s, per pound and per share data) | |||||||||||||||||||||||||||||||||||||||
As reported | $ | 912,659 | 12.9 | % | $ | 103,335 | $ | 3,606 | $ | 498 | $ | 27,094 | $ | 0.029 | $ | (913 | ) | $ | 23,564 | $ | 0.79 | ||||||||||||||||||
Certain items: | |||||||||||||||||||||||||||||||||||||||
Asset write-downs (1) | (682 | ) | — | — | (498 | ) | 1,180 | 149 | 1,031 | 0.04 | |||||||||||||||||||||||||||||
Costs related to acquisitions (2) | — | (987 | ) | — | — | 987 | 79 | 908 | 0.03 | ||||||||||||||||||||||||||||||
Restructuring and related costs (3) | — | — | (3,606 | ) | — | 3,939 | 857 | 3,082 | 0.10 | ||||||||||||||||||||||||||||||
Inventory step-up (4) | (138 | ) | — | — | — | 138 | — | 138 | — | ||||||||||||||||||||||||||||||
Tax benefits (charges) (5) | — | — | — | — | — | 6,160 | (6,160 | ) | (0.20 | ) | |||||||||||||||||||||||||||||
Loss (income) from discontinued operations | 279 | 0.01 | |||||||||||||||||||||||||||||||||||||
Total certain items | $ | (820 | ) | 0.1 | % | $ | (987 | ) | $ | (3,606 | ) | $ | (498 | ) | $ | 6,244 | $ | 0.007 | $ | 7,245 | $ | (722 | ) | $ | (0.02 | ) | |||||||||||||
As Adjusted | $ | 911,839 | 13.0 | % | $ | 102,348 | $ | — | $ | — | $ | 33,338 | $ | 0.036 | $ | 6,332 | $ | 22,842 | $ | 0.77 | |||||||||||||||||||
Percentage of Revenue | 9.8 | % | 3.2 | % | 2.2 | % | |||||||||||||||||||||||||||||||||
1 - Asset write-downs primarily relate to asset impairments and accelerated depreciation. | |||||||||||||||||||||||||||||||||||||||
2 - Costs related to acquisitions include third party professional, legal and other expenses associated with successful and unsuccessful full or partial acquisition and divestiture/dissolution transactions, as well as certain employee-related expenses such as travel, one-time bonuses and post-acquisition severance separate from a formal restructuring plan. | |||||||||||||||||||||||||||||||||||||||
3 - Restructuring related costs include items such as employee severance charges, lease termination charges, curtailment gains/losses, other employee termination costs and charges related to the reorganization of the legal entity structure. | |||||||||||||||||||||||||||||||||||||||
4 - Inventory step-up costs include the adjustment for fair value of inventory acquired as a result of acquisition purchase accounting. | |||||||||||||||||||||||||||||||||||||||
5 - Tax benefits (charges) include the effect of the adjustments to the Germany and Brazil valuation allowances in fiscal 2013. |
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Three months ended February 28, | |||||||||||||||||||||||||||
EMEA | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 105,626 | $ | 106,343 | $ | (717 | ) | (0.7 | )% | 83,217 | 82,658 | 559 | 0.7 | % | |||||||||||||
Engineered plastics | 115,133 | 83,887 | 31,246 | 37.2 | % | 69,605 | 51,575 | 18,030 | 35.0 | % | |||||||||||||||||
Distribution services | 82,985 | 83,874 | (889 | ) | (1.1 | )% | 99,284 | 98,892 | 392 | 0.4 | % | ||||||||||||||||
Specialty powders | 43,367 | 35,380 | 7,987 | 22.6 | % | 42,469 | 37,467 | 5,002 | 13.4 | % | |||||||||||||||||
Custom performance colors | 35,913 | 32,714 | 3,199 | 9.8 | % | 11,641 | 11,107 | 534 | 4.8 | % | |||||||||||||||||
Total EMEA | $ | 383,024 | $ | 342,198 | $ | 40,826 | 11.9 | % | 306,216 | 281,699 | 24,517 | 8.7 | % | ||||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Three months ended February 28, | |||||||||||||||||||||||||||
Americas | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 63,460 | $ | 64,557 | $ | (1,097 | ) | (1.7 | )% | 67,705 | 72,642 | (4,937 | ) | (6.8 | )% | ||||||||||||
Engineered plastics | 43,873 | 32,774 | 11,099 | 33.9 | % | 28,585 | 20,046 | 8,539 | 42.6 | % | |||||||||||||||||
Distribution services | 11,150 | 10,734 | 416 | 3.9 | % | 12,096 | 12,888 | (792 | ) | (6.1 | )% | ||||||||||||||||
Specialty powders | 32,720 | 31,452 | 1,268 | 4.0 | % | 45,569 | 49,470 | (3,901 | ) | (7.9 | )% | ||||||||||||||||
Custom performance colors | 5,896 | 4,688 | 1,208 | 25.8 | % | 2,279 | 1,766 | 513 | 29.0 | % | |||||||||||||||||
Total Americas | $ | 157,099 | $ | 144,205 | $ | 12,894 | 8.9 | % | 156,234 | 156,812 | (578 | ) | (0.4 | )% | |||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Three months ended February 28, | |||||||||||||||||||||||||||
APAC | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 19,883 | $ | 18,644 | $ | 1,239 | 6.6 | % | 17,929 | 14,771 | 3,158 | 21.4 | % | ||||||||||||||
Engineered plastics | 23,884 | 7,247 | 16,637 | 229.6 | % | 16,013 | 4,004 | 12,009 | n/a | ||||||||||||||||||
Distribution services | 271 | — | 271 | 100.0 | % | 361 | — | 361 | 100.0 | % | |||||||||||||||||
Specialty powders | 3,776 | 2,909 | 867 | 29.8 | % | 3,462 | 2,935 | 527 | 18.0 | % | |||||||||||||||||
Custom performance colors | 571 | 237 | 334 | 140.9 | % | 429 | 80 | 349 | n/a | ||||||||||||||||||
Total APAC | $ | 48,385 | $ | 29,037 | $ | 19,348 | 66.6 | % | 38,194 | 21,790 | 16,404 | 75.3 | % | ||||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Three months ended February 28, | |||||||||||||||||||||||||||
Consolidated | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 188,969 | $ | 189,544 | $ | (575 | ) | (0.3 | )% | 168,851 | 170,071 | (1,220 | ) | (0.7 | )% | ||||||||||||
Engineered plastics | 182,890 | 123,908 | 58,982 | 47.6 | % | 114,203 | 75,625 | 38,578 | 51.0 | % | |||||||||||||||||
Distribution services | 94,406 | 94,608 | (202 | ) | (0.2 | )% | 111,741 | 111,780 | (39 | ) | — | % | |||||||||||||||
Specialty powders | 79,863 | 69,741 | 10,122 | 14.5 | % | 91,500 | 89,872 | 1,628 | 1.8 | % | |||||||||||||||||
Custom performance colors | 42,380 | 37,639 | 4,741 | 12.6 | % | 14,349 | 12,953 | 1,396 | 10.8 | % | |||||||||||||||||
Total Consolidated | $ | 588,508 | $ | 515,440 | $ | 73,068 | 14.2 | % | 500,644 | 460,301 | 40,343 | 8.8 | % |
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Six months ended February 28, | |||||||||||||||||||||||||||
EMEA | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 214,526 | $ | 221,746 | $ | (7,220 | ) | (3.3 | )% | 168,557 | 170,646 | (2,089 | ) | (1.2 | )% | ||||||||||||
Engineered plastics | 237,349 | 173,360 | 63,989 | 36.9 | % | 144,762 | 106,726 | 38,036 | 35.6 | % | |||||||||||||||||
Distribution services | 161,218 | 160,491 | 727 | 0.5 | % | 191,678 | 192,530 | (852 | ) | (0.4 | )% | ||||||||||||||||
Specialty powders | 90,408 | 73,129 | 17,279 | 23.6 | % | 89,467 | 79,647 | 9,820 | 12.3 | % | |||||||||||||||||
Custom performance colors | 71,985 | 64,960 | 7,025 | 10.8 | % | 23,972 | 22,181 | 1,791 | 8.1 | % | |||||||||||||||||
Total EMEA | $ | 775,486 | $ | 693,686 | $ | 81,800 | 11.8 | % | 618,436 | 571,730 | 46,706 | 8.2 | % | ||||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Six months ended February 28, | |||||||||||||||||||||||||||
Americas | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 126,426 | $ | 128,743 | $ | (2,317 | ) | (1.8 | )% | 138,529 | 143,272 | (4,743 | ) | (3.3 | )% | ||||||||||||
Engineered plastics | 74,970 | 69,971 | 4,999 | 7.1 | % | 46,742 | 43,319 | 3,423 | 7.9 | % | |||||||||||||||||
Distribution services | 22,293 | 21,745 | 548 | 2.5 | % | 24,472 | 26,296 | (1,824 | ) | (6.9 | )% | ||||||||||||||||
Specialty powders | 69,376 | 64,007 | 5,369 | 8.4 | % | 97,692 | 100,345 | (2,653 | ) | (2.6 | )% | ||||||||||||||||
Custom performance colors | 10,561 | 9,313 | 1,248 | 13.4 | % | 4,033 | 3,416 | 617 | 18.1 | % | |||||||||||||||||
Total Americas | $ | 303,626 | $ | 293,779 | $ | 9,847 | 3.4 | % | 311,468 | 316,648 | (5,180 | ) | (1.6 | )% | |||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Six months ended February 28, | |||||||||||||||||||||||||||
APAC | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 40,409 | $ | 37,981 | $ | 2,428 | 6.4 | % | 35,474 | 30,209 | 5,265 | 17.4 | % | ||||||||||||||
Engineered plastics | 45,282 | 15,395 | 29,887 | 194.1 | % | 29,593 | 8,231 | 21,362 | 259.5 | % | |||||||||||||||||
Distribution services | 803 | 19 | 784 | n/a | 1,004 | 14 | 990 | n/a | |||||||||||||||||||
Specialty powders | 7,026 | 6,428 | 598 | 9.3 | % | 6,423 | 6,440 | (17 | ) | (0.3 | )% | ||||||||||||||||
Custom performance colors | 1,273 | 237 | 1,036 | n/a | 962 | 80 | 882 | n/a | |||||||||||||||||||
Total APAC | $ | 94,793 | $ | 60,060 | $ | 34,733 | 57.8 | % | 73,456 | 44,974 | 28,482 | 63.3 | % | ||||||||||||||
Net Sales | Pounds Sold | ||||||||||||||||||||||||||
Six months ended February 28, | |||||||||||||||||||||||||||
Consolidated | 2014 | 2013 | $ Change | % Change | 2014 | 2013 | Lbs. Change | % Change | |||||||||||||||||||
(In thousands, except for %'s) | |||||||||||||||||||||||||||
Masterbatch Solutions | $ | 381,361 | $ | 388,470 | $ | (7,109 | ) | (1.8 | )% | 342,560 | 344,127 | (1,567 | ) | (0.5 | )% | ||||||||||||
Engineered plastics | 357,601 | 258,726 | 98,875 | 38.2 | % | 221,097 | 158,276 | 62,821 | 39.7 | % | |||||||||||||||||
Distribution services | 184,314 | 182,255 | 2,059 | 1.1 | % | 217,154 | 218,840 | (1,686 | ) | (0.8 | )% | ||||||||||||||||
Specialty powders | 166,810 | 143,564 | 23,246 | 16.2 | % | 193,582 | 186,432 | 7,150 | 3.8 | % | |||||||||||||||||
Custom performance colors | 83,819 | 74,510 | 9,309 | 12.5 | % | 28,967 | 25,677 | 3,290 | 12.8 | % | |||||||||||||||||
Total Consolidated | $ | 1,173,905 | $ | 1,047,525 | $ | 126,380 | 12.1 | % | 1,003,360 | 933,352 | 70,008 | 7.5 | % |
Three months ended February 28, | Six months ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Unaudited (In thousands, except for %'s) | ||||||||||||||||
Segment gross profit | ||||||||||||||||
EMEA | $ | 47,499 | $ | 39,930 | $ | 99,439 | $ | 85,033 | ||||||||
Americas | 21,226 | 18,735 | 42,659 | 40,161 | ||||||||||||
APAC | 6,527 | 4,938 | 13,150 | 10,492 | ||||||||||||
Total segment gross profit | 75,252 | 63,603 | 155,248 | 135,686 | ||||||||||||
Inventory step-up | (782 | ) | — | (1,199 | ) | (138 | ) | |||||||||
Accelerated depreciation and restructuring related | (171 | ) | (404 | ) | (642 | ) | (682 | ) | ||||||||
Total gross profit | $ | 74,299 | $ | 63,199 | $ | 153,407 | $ | 134,866 | ||||||||
Segment operating income | ||||||||||||||||
EMEA | $ | 17,553 | $ | 11,521 | $ | 37,972 | $ | 27,666 | ||||||||
Americas | 6,269 | 5,845 | 13,632 | 13,637 | ||||||||||||
APAC | 3,176 | 2,405 | 6,542 | 5,494 | ||||||||||||
Total segment operating income | 26,998 | 19,771 | 58,146 | 46,797 | ||||||||||||
Corporate | (7,714 | ) | (7,512 | ) | (14,397 | ) | (13,459 | ) | ||||||||
Costs related to acquisitions | (1,851 | ) | (675 | ) | (2,487 | ) | (987 | ) | ||||||||
Restructuring and related costs | (2,792 | ) | (1,669 | ) | (6,164 | ) | (3,606 | ) | ||||||||
Accelerated depreciation | — | (404 | ) | (108 | ) | (682 | ) | |||||||||
Asset impairment | (104 | ) | — | (104 | ) | (498 | ) | |||||||||
Curtailment gain (loss) | — | — | — | (333 | ) | |||||||||||
Inventory step-up | (782 | ) | — | (1,199 | ) | (138 | ) | |||||||||
Operating income | 13,755 | 9,511 | 33,687 | 27,094 | ||||||||||||
Interest expense, net | (2,407 | ) | (1,806 | ) | (4,536 | ) | (3,367 | ) | ||||||||
Foreign currency transaction gains (losses) | (1,466 | ) | 40 | (2,148 | ) | (539 | ) | |||||||||
Other income (expense), net | 193 | 211 | 271 | 347 | ||||||||||||
Income from continuing operations before taxes | $ | 10,075 | $ | 7,956 | $ | 27,274 | $ | 23,535 | ||||||||
Capacity utilization | ||||||||||||||||
EMEA | 77 | % | 70 | % | 82 | % | 75 | % | ||||||||
Americas | 60 | % | 61 | % | 64 | % | 64 | % | ||||||||
APAC | 72 | % | 65 | % | 70 | % | 70 | % | ||||||||
Worldwide | 69 | % | 66 | % | 73 | % | 70 | % |