AKRON, Ohio, Jan. 6, 2015 /PRNewswire/ -- A. Schulman,
Inc. (Nasdaq-GS: SHLM) announced today earnings for the fiscal
first quarter ended November 30,
2014.
Bernard Rzepka, President and
Chief Executive Officer, said, "We are pleased by the good start to
fiscal 2015. Our European team was able to maintain relatively flat
results in a difficult economic landscape while our Americas and
APAC regions more than offset the weakness in Europe. Our seasoned leaders will continue to
take proactive steps such as the recently announced restructuring
initiatives to drive efficiencies and help mitigate foreign
exchange fluctuations. We had solid contributions from our recent
acquisitions and continue to execute on our organic initiatives to
create a strong and sustainable pipeline of innovative products and
seek out value-added markets."
Fiscal First-Quarter Results
Net sales for the fiscal 2015 first quarter were $615.1 million, an increase of 5% compared with
$585.4 million in the prior-year
quarter. Foreign currency translation negatively impacted net sales
by $26.2 million. Excluding the
impact of foreign currency translation, revenues would have
increased by $55.9 million to
$641.3 million for the quarter, up
9.5% over the prior-year period. Gross margin, excluding certain
items, in the first quarter as a percent of net sales improved to
14.2% compared with 13.7% in the prior-year period.
Net sales for EMEA in the quarter were $371.2 million, a decrease of $21.3 million, or 5.4%, compared with the
prior-year period. Foreign currency translation negatively
impacted net sales by $21.5 million.
The benefit from the Company's recent Specialty Plastics
acquisition was offset by a decline in organic sales across all
product families. EMEA gross profit was $49.7 million, a decrease of $2.2 million compared with the same prior-year
period. The decrease in the segment's gross profit was mainly
attributed to the unfavorable foreign currency translation impact
of $3 million, lower organic volumes
and higher pension expense of $0.2
million which were only partially offset by the incremental
contribution of the Specialty Plastics acquisition.
Net sales for the Americas were $190.9
million, an increase of 30.3% or $44.4 million in the first quarter compared with
the prior-year period. Volume increased 19.8% or 30.7 million
pounds during the quarter. The incremental contribution of
the recent acquisitions accounted for virtually all of the change
in both net sales and volume during the quarter, which was a direct
result of the Company's successful acquisition strategy. Foreign
currency translation negatively impacted net sales by $4.2 million. Segment gross profit for the
Americas was $30.3 million in the
quarter, an increase of $8.8 million
or 41% compared with the same period last year. The increase
was primarily attributed to the contributions from recent
acquisitions and improved product mix in the Company's Specialty
Powders product family.
Net sales for APAC were $53
million, an increase of 14.1% or $6.6
million in the first quarter compared with the prior-year
period. Volume increased 19.8% or 7 million pounds during the
quarter. During the quarter, the Compco acquisition in Australia contributed net sales and volume of
$3.4 million and 2.3 million pounds,
respectively. Excluding the Compco acquisition, organic volume
increased across nearly all product families but was partially
offset by decreased price per pound driven by competitive pricing
pressures. Segment gross profit for APAC for the quarter increased
$0.6 million or 9.5% compared with
the prior-year period.
Working Capital/Cash Flow From Operations
Cash provided from operations was $10.3
million in the first quarter of fiscal 2015 compared with
$9.8 million for the first quarter of
fiscal 2014. Working capital was flat at 58 days at the end of the
fiscal 2015 and 2014 first quarters.
Capital expenditures for the quarter were $10.3 million compared with $9.6 million for the prior-year quarter, and were
primarily related to the regular and ongoing investment in the
Company's global manufacturing facilities. During the first quarter
of fiscal 2015, the Company declared and paid quarterly cash
dividends for a total amount of $6.0
million and repurchased shares of common stock for a total
cost of $3.3 million.
Business Outlook
Rzepka said, "Despite our double-digit earnings growth in the
first quarter, we believe fiscal 2015 will be challenging. We are
already seeing the adverse impact related to macro economic
conditions and currency fluctuations. However, we will continue to
aggressively focus on our acquisition strategy, proactive
restructuring actions, and marketing initiatives which are gaining
good traction to overcome economic events which are out of our
control. We are working hard to realize optimal synergies from our
recent acquisitions; evaluating our footprint to match current
demand; and efficiently managing our expenses. The focus we have on
safety, smart sales and smart savings will help us to offset the
slow global economic environment while allowing us to better serve
our customers and position us for growth. As a result, we remain
confident that our fiscal 2015 adjusted net income will be in the
range of $2.60 to $2.65 per diluted
share."
Conference Call on the Web
A live Internet broadcast of A. Schulman's conference call
regarding fiscal 2015 first-quarter earnings can be accessed at
10:00 a.m. Eastern Time on
Wednesday, January 7, 2015, on the
Company's website, www.aschulman.com. An archived replay of the
call will also be available on the website.
Investor Presentation Materials
Senior executives of the Company may participate in meetings
with analysts and investors throughout the fiscal year. The Company
has posted presentation materials, portions of which may be used
during such meetings, in the Investors section of its website at
www.aschulman.com. The presentation will remain on the website as
long as it is in use.
About A. Schulman, Inc.
A. Schulman, Inc. is a leading international supplier of
high-performance plastic compounds and resins headquartered in
Akron, Ohio. Since 1928, the
Company has been providing innovative solutions to meet its
customers' demanding requirements. The Company's customers
span a wide range of markets such as packaging, mobility, building
& construction, electronics & electrical, agriculture,
personal care & hygiene, sports, leisure & home, custom
services and others. The Company employs approximately 3,900
people and has 43 manufacturing facilities globally. A.
Schulman reported net sales of approximately $2.5 billion for the fiscal year ended
August 31, 2014. Additional
information about A. Schulman can be found at
www.aschulman.com.
Use of Non-GAAP Financial Measures
This release includes certain financial information determined
by methods other than in accordance with accounting principles
generally accepted in the United
States ("GAAP"). These non-GAAP financial measures
include segment gross profit, SG&A expenses excluding certain
items, segment operating income, operating income before certain
items, net income excluding certain items and net income per
diluted share excluding certain items, as discussed further in the
Reconciliation of GAAP and Non-GAAP Financial Measures below. These
non-GAAP financial measures are considered relevant to aid analysis
and understanding of the Company's results and business trends.
However, non-GAAP measures are not in accordance with, nor are they
a substitute for, GAAP measures, and tables included in this
release reconcile each non-GAAP financial measure with the most
directly comparable GAAP financial measure. The most directly
comparable GAAP financial measures for these purposes are gross
profit, SG&A expenses, operating income, net income and net
income per diluted share. The Company's non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures, and should be
read only in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP.
While the Company believes that these non-GAAP financial
measures provide useful supplemental information to investors,
there are very significant limitations associated with their
use. These non-GAAP financial measures are not prepared in
accordance with GAAP, may not be reported by all of the Company's
competitors and may not be directly comparable to similarly titled
measures of the Company's competitors due to potential differences
in the exact method of calculation. The Company compensates
for these limitations by using these non-GAAP financial measures as
supplements to GAAP financial measures and by reviewing the
reconciliations of the non-GAAP financial measures to their most
comparable GAAP financial measures.
Cautionary Statements
A number of the matters discussed in this document that are not
historical or current facts deal with potential future
circumstances and developments and may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the fact that they do not relate strictly to historic or current
facts and relate to future events and expectations. Forward-looking
statements contain such words as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," and other words
and terms of similar meaning in connection with any discussion of
future operating or financial performance. Forward-looking
statements are based on management's current expectations and
include known and unknown risks, uncertainties and other factors,
many of which management is unable to predict or control, that may
cause actual results, performance or achievements to differ
materially from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to
differ materially from those suggested by these forward-looking
statements, and that could adversely affect the Company's future
financial performance, include, but are not limited to, the
following:
- 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 major 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.
The risks and uncertainties identified above are not the only
risks the Company faces. Additional risk factors that could affect
the Company's performance are set forth in the Company's Annual
Report on Form 10-K for the fiscal year ended August 31, 2014.
In addition, risks and uncertainties not presently known to the
Company or that it believes to be immaterial also may adversely
affect the Company. Should any known or unknown risks or
uncertainties develop into actual events, or underlying assumptions
prove inaccurate, these developments could have material adverse
effects on the Company's business, financial condition and results
of operations.
SHLM_ALL
|
A. SCHULMAN,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three months ended
November 30,
|
|
2014
|
|
2013
|
|
Unaudited
(In thousands, except
per share data)
|
|
Net
sales
|
$
|
615,053
|
|
$
|
585,397
|
|
Cost of
sales
|
528,209
|
|
506,289
|
|
Selling, general and
administrative expenses
|
60,547
|
|
57,398
|
|
Restructuring
expense
|
5,219
|
|
1,778
|
|
Operating
income
|
21,078
|
|
19,932
|
|
Interest
expense
|
2,359
|
|
2,191
|
|
Interest
income
|
(95)
|
|
(62)
|
|
Foreign currency
transaction (gains) losses
|
1,099
|
|
682
|
|
Other (income)
expense, net
|
(159)
|
|
(78)
|
|
Income from
continuing operations before taxes
|
17,874
|
|
17,199
|
|
Provision (benefit)
for U.S. and foreign income taxes
|
4,486
|
|
4,568
|
|
Income from
continuing operations
|
13,388
|
|
12,631
|
|
Income (loss) from
discontinued operations, net of tax
|
(10)
|
|
2,655
|
|
Net
income
|
13,378
|
|
15,286
|
|
Noncontrolling
interests
|
(220)
|
|
(215)
|
|
Net income
attributable to A. Schulman, Inc.
|
$
|
13,158
|
|
$
|
15,071
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
Basic
|
29,017
|
|
29,017
|
|
Diluted
|
29,468
|
|
29,205
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to A. Schulman, Inc.
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.45
|
|
$
|
0.43
|
|
Income (loss) from
discontinued operations
|
—
|
|
0.09
|
|
Net income
attributable to A. Schulman, Inc.
|
$
|
0.45
|
|
$
|
0.52
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to A. Schulman, Inc.
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.45
|
|
$
|
0.43
|
|
Income (loss) from
discontinued operations
|
—
|
|
0.09
|
|
Net income
attributable to A. Schulman, Inc.
|
$
|
0.45
|
|
$
|
0.52
|
|
|
|
|
|
|
Cash dividends per
common share
|
$
|
0.205
|
|
$
|
0.200
|
|
A. SCHULMAN,
INC.
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
November 30,
2014
|
|
August 31,
2013
|
|
Unaudited
(In
thousands)
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
132,109
|
|
$
|
135,493
|
|
Accounts receivable,
less allowance for doubtful accounts of $10,674 at November 30,
2014 and $10,844 at August 31, 2014
|
376,486
|
|
384,444
|
|
Inventories
|
296,539
|
|
292,141
|
|
Prepaid expenses and
other current assets
|
47,591
|
|
40,473
|
|
Total current
assets
|
852,725
|
|
852,551
|
|
Property, plant
and equipment, at cost:
|
|
|
|
|
Land and
improvements
|
27,155
|
|
28,439
|
|
Buildings and
leasehold improvements
|
154,656
|
|
160,858
|
|
Machinery and
equipment
|
394,884
|
|
398,563
|
|
Furniture and
fixtures
|
39,785
|
|
41,255
|
|
Construction in
progress
|
17,676
|
|
16,718
|
|
Gross property,
plant and equipment
|
634,156
|
|
645,833
|
|
Accumulated
depreciation
|
384,143
|
|
391,912
|
|
Net property,
plant and equipment
|
250,013
|
|
253,921
|
|
Deferred
charges and other noncurrent assets
|
63,376
|
|
65,079
|
|
Goodwill
|
198,649
|
|
202,299
|
|
Intangible assets,
net
|
131,488
|
|
138,634
|
|
Total
assets
|
$
|
1,496,251
|
|
$
|
1,512,484
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
314,315
|
|
$
|
314,957
|
|
U.S. and foreign
income taxes payable
|
6,075
|
|
6,385
|
|
Accrued payroll,
taxes and related benefits
|
47,661
|
|
54,199
|
|
Other accrued
liabilities
|
52,270
|
|
46,054
|
|
Short-term
debt
|
32,012
|
|
31,748
|
|
Total current
liabilities
|
452,333
|
|
453,343
|
|
Long-term
debt
|
353,262
|
|
339,546
|
|
Pension
plans
|
123,923
|
|
129,949
|
|
Deferred income
taxes
|
23,222
|
|
23,826
|
|
Other long-term
liabilities
|
28,704
|
|
29,369
|
|
Total
liabilities
|
981,444
|
|
976,033
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, $1 par
value, authorized - 75,000 shares, issued - 48,186 shares at
November 30, 2014 and 48,185 shares at August 31, 2014
|
48,186
|
|
48,185
|
|
Additional paid-in
capital
|
269,818
|
|
268,545
|
|
Accumulated other
comprehensive income (loss)
|
(41,946)
|
|
(16,691)
|
|
Retained
earnings
|
614,094
|
|
606,898
|
|
Treasury stock, at
cost, 19,081 shares at November 30, 2014 and 18,973 shares at
August 31, 2014
|
(383,199)
|
|
(379,894)
|
|
Total A. Schulman,
Inc.'s stockholders' equity
|
506,953
|
|
527,043
|
|
Noncontrolling
interests
|
7,854
|
|
9,408
|
|
Total
equity
|
514,807
|
|
536,451
|
|
Total liabilities
and equity
|
$
|
1,496,251
|
|
$
|
1,512,484
|
|
A. SCHULMAN,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Three months
ended
November 30,
|
|
2014
|
|
2013
|
|
Unaudited
(In
thousands)
|
|
Operating from
continuing and discontinued operations:
|
|
|
|
|
Net income
|
13,378
|
|
15,286
|
|
Adjustments to
reconcile net income to net cash provided from (used in) operating
activities:
|
|
|
|
|
Depreciation
|
8,963
|
|
7,865
|
|
Amortization
|
4,066
|
|
3,244
|
|
Deferred tax
provision
|
633
|
|
(693)
|
|
Pension,
postretirement benefits and other compensation
|
2,452
|
|
2,550
|
|
Gain on sale of
assets from discontinued operations
|
—
|
|
(3,028)
|
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
(4,731)
|
|
(12,681)
|
|
Inventories
|
(16,341)
|
|
(25,936)
|
|
Accounts
payable
|
8,200
|
|
24,826
|
|
Income
taxes
|
463
|
|
765
|
|
Accrued payroll and
other accrued liabilities
|
2,846
|
|
1,239
|
|
Other assets and
long-term liabilities
|
(9,670)
|
|
(3,618)
|
|
Net cash provided
from (used in) operating activities
|
10,259
|
|
9,819
|
|
Investing from
continuing and discontinued operations:
|
|
|
|
|
Expenditures for
property, plant and equipment
|
(10,324)
|
|
(9,601)
|
|
Proceeds from the
sale of assets
|
904
|
|
3,087
|
|
Business
acquisitions, net of cash
|
(6,698)
|
|
(51,322)
|
|
Net cash provided
from (used in) investing activities
|
(16,118)
|
|
(57,836)
|
|
Financing from
continuing and discontinued operations:
|
|
|
|
|
Cash dividends
paid
|
(5,962)
|
|
(5,915)
|
|
Increase (decrease)
in short-term debt
|
870
|
|
3,294
|
|
Borrowings on
long-term debt
|
27,500
|
|
457,000
|
|
Repayments on
long-term debt including current portion
|
(10,915)
|
|
(444,649)
|
|
Payment of debt
issuance costs
|
—
|
|
(1,731)
|
|
Noncontrolling
interests' contributions (distributions)
|
(1,750)
|
|
—
|
|
Issuances of stock,
common and treasury
|
71
|
|
211
|
|
Purchases of treasury
stock
|
(3,335)
|
|
(1,116)
|
|
Net cash provided
from (used in) financing activities
|
6,479
|
|
7,094
|
|
Effect of exchange
rate changes on cash
|
(4,004)
|
|
1,672
|
|
Net increase
(decrease) in cash and cash equivalents
|
(3,384)
|
|
(39,251)
|
|
Cash and cash
equivalents at beginning of period
|
135,493
|
|
134,054
|
|
Cash and cash
equivalents at end of period
|
$
|
132,109
|
|
$
|
94,803
|
|
|
|
|
|
|
|
A. SCHULMAN,
INC.
Reconciliation of
GAAP and Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30, 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
|
$
|
528,209
|
|
14.1%
|
|
$
|
60,547
|
|
$
|
5,219
|
|
$
|
—
|
|
$
|
21,078
|
|
$
|
0.039
|
|
$
|
4,486
|
|
$
|
13,158
|
|
$
|
0.45
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset write-downs
(1)
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
—
|
|
—
|
|
Costs related to
acquisitions and integrations (2)
|
(50)
|
|
|
|
(1,003)
|
|
—
|
|
—
|
|
1,053
|
|
|
|
|
77
|
|
976
|
|
0.03
|
|
Restructuring and
related costs (3)
|
—
|
|
|
|
(360)
|
|
(5,219)
|
|
—
|
|
5,579
|
|
|
|
|
1,483
|
|
4,096
|
|
0.14
|
|
Inventory step-up
(4)
|
(341)
|
|
|
|
—
|
|
—
|
|
—
|
|
341
|
|
|
|
|
102
|
|
239
|
|
0.01
|
|
Tax benefits
(charges)
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
—
|
|
—
|
|
Loss (income) from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
—
|
|
Total certain
items
|
(391)
|
|
0.1%
|
|
(1,363)
|
|
(5,219)
|
|
—
|
|
6,973
|
|
0.013
|
|
1,662
|
|
5,321
|
|
0.18
|
|
As
Adjusted
|
$
|
527,818
|
|
14.2%
|
|
$
|
59,184
|
|
$
|
—
|
|
$
|
—
|
|
$
|
28,051
|
|
$
|
0.052
|
|
$
|
6,148
|
|
$
|
18,479
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
9.6%
|
|
|
|
|
|
|
4.6%
|
|
|
|
|
|
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30, 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
|
$
|
506,289
|
|
13.5%
|
|
$
|
57,398
|
|
$
|
1,778
|
|
$
|
—
|
|
$
|
19,932
|
|
$
|
0.040
|
|
$
|
4,568
|
|
$
|
15,071
|
|
$
|
0.52
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset write-downs
(1)
|
(108)
|
|
|
|
|
—
|
|
—
|
|
—
|
|
108
|
|
|
|
|
1
|
|
107
|
|
—
|
|
Costs related to
acquisitions and integrations (2)
|
—
|
|
|
|
|
(635)
|
|
—
|
|
—
|
|
635
|
|
|
|
|
89
|
|
546
|
|
0.02
|
|
Restructuring and
related costs (3)
|
(363)
|
|
|
|
|
(1,231)
|
|
(1,778)
|
|
—
|
|
3,372
|
|
|
|
|
322
|
|
3,340
|
|
0.11
|
|
Inventory step-up
(4)
|
(417)
|
|
|
|
|
—
|
|
—
|
|
—
|
|
417
|
|
|
|
|
98
|
|
319
|
|
0.01
|
|
Loss (income) from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,655)
|
|
(0.09)
|
|
Total certain
items
|
(888)
|
|
0.2%
|
|
(1,866)
|
|
(1,778)
|
|
—
|
|
4,532
|
|
0.009
|
|
510
|
|
1,657
|
|
0.05
|
|
As
Adjusted
|
$
|
505,401
|
|
13.7%
|
|
$
|
55,532
|
|
$
|
—
|
|
$
|
—
|
|
$
|
24,464
|
|
$
|
0.049
|
|
$
|
5,078
|
|
$
|
16,728
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
|
9.5%
|
|
|
|
|
|
4.2%
|
|
|
|
|
|
|
|
2.9%
|
|
|
|
1 - Asset write-downs
primarily relate to asset impairments and accelerated
depreciation.
|
|
2 - Costs related to
acquisitions and integrations primarily include third party
professional, legal and other expenses associated with successful
and unsuccessful full or partial acquisition and
divestiture/dissolution transactions. Additionally, costs related
to acquisitions include certain employee-related expenses such as
acquisition-related travel and integration costs.
|
|
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.
|
|
A. SCHULMAN,
INC.
SUPPLEMENTAL
SEGMENT INFORMATION
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
Three months ended
November 30,
|
|
EMEA
|
2014
|
|
2013
|
|
$
Change
|
|
%
Change
|
|
2014
|
|
2013
|
|
Lbs.
Change
|
|
%
Change
|
|
(In thousands, except
for %'s)
|
|
Custom Performance
Color
|
$
|
33,459
|
|
$
|
36,073
|
|
$
|
(2,614)
|
|
(7.2)
|
%
|
|
11,509
|
|
12,331
|
|
(822)
|
|
(6.7)
|
%
|
|
Masterbatch
Solutions
|
116,400
|
|
108,901
|
|
7,499
|
|
6.9
|
%
|
|
97,330
|
|
85,340
|
|
11,990
|
|
14.0
|
%
|
|
Engineered
Plastics
|
109,273
|
|
122,216
|
|
(12,943)
|
|
(10.6)
|
%
|
|
71,690
|
|
75,157
|
|
(3,467)
|
|
(4.6)
|
%
|
|
Specialty
powders
|
41,450
|
|
47,040
|
|
(5,590)
|
|
(11.9)
|
%
|
|
43,443
|
|
46,998
|
|
(3,555)
|
|
(7.6)
|
%
|
|
Distribution
Services
|
70,609
|
|
78,232
|
|
(7,623)
|
|
(9.7)
|
%
|
|
92,486
|
|
92,394
|
|
92
|
|
0.1
|
%
|
|
Total EMEA
|
$
|
371,191
|
|
$
|
392,462
|
|
$
|
(21,271)
|
|
(5.4)
|
%
|
|
316,458
|
|
312,220
|
|
4,238
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
Three months ended
November 30,
|
|
Americas
|
2014
|
|
2013
|
|
$
Change
|
|
%
Change
|
|
2014
|
|
2013
|
|
Lbs.
Change
|
|
%
Change
|
|
(In thousands, except
for %'s)
|
|
Custom Performance
Color
|
$
|
11,388
|
|
$
|
8,166
|
|
$
|
3,222
|
|
39.5
|
%
|
|
3,869
|
|
2,604
|
|
1,265
|
|
48.6
|
%
|
|
Masterbatch
Solutions
|
65,291
|
|
53,476
|
|
11,815
|
|
22.1
|
%
|
|
73,143
|
|
62,528
|
|
10,615
|
|
17.0
|
%
|
|
Engineered
Plastics
|
59,967
|
|
37,084
|
|
22,883
|
|
61.7
|
%
|
|
38,769
|
|
25,605
|
|
13,164
|
|
51.4
|
%
|
|
Specialty
powders
|
37,135
|
|
36,657
|
|
478
|
|
1.3
|
%
|
|
52,968
|
|
52,122
|
|
846
|
|
1.6
|
%
|
|
Distribution
Services
|
17,107
|
|
11,144
|
|
5,963
|
|
53.5
|
%
|
|
17,159
|
|
12,375
|
|
4,784
|
|
38.7
|
%
|
|
Total Americas
|
$
|
190,888
|
|
$
|
146,527
|
|
$
|
44,361
|
|
30.3
|
%
|
|
185,908
|
|
155,234
|
|
30,674
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
Three months ended
November 30,
|
|
APAC
|
2014
|
|
2013
|
|
$
Change
|
|
%
Change
|
|
2014
|
|
2013
|
|
Lbs.
Change
|
|
%
Change
|
|
(In thousands, except
for %'s)
|
|
Custom Performance
Color
|
$
|
3,231
|
|
$
|
702
|
|
$
|
2,529
|
|
360.3
|
%
|
|
2,371
|
|
533
|
|
1,838
|
|
344.8
|
%
|
|
Masterbatch
Solutions
|
20,339
|
|
20,526
|
|
(187)
|
|
(0.9)
|
%
|
|
18,853
|
|
17,544
|
|
1,309
|
|
7.5
|
%
|
|
Engineered
Plastics
|
25,276
|
|
21,398
|
|
3,878
|
|
18.1
|
%
|
|
16,905
|
|
13,580
|
|
3,325
|
|
24.5
|
%
|
|
Specialty
powders
|
3,772
|
|
3,250
|
|
522
|
|
16.1
|
%
|
|
3,691
|
|
2,962
|
|
729
|
|
24.6
|
%
|
|
Distribution
Services
|
356
|
|
532
|
|
(176)
|
|
(33.1)
|
%
|
|
410
|
|
643
|
|
(233)
|
|
(36.2)
|
%
|
|
Total APAC
|
$
|
52,974
|
|
$
|
46,408
|
|
$
|
6,566
|
|
14.1
|
%
|
|
42,230
|
|
35,262
|
|
6,968
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
Three months ended
November 30,
|
|
Consolidated
|
2014
|
|
2013
|
|
$
Change
|
|
%
Change
|
|
2014
|
|
2013
|
|
Lbs.
Change
|
|
%
Change
|
|
(In thousands, except
for %'s)
|
|
Custom Performance
Color
|
$
|
48,078
|
|
$
|
44,941
|
|
$
|
3,137
|
|
7.0
|
%
|
|
17,749
|
|
15,468
|
|
2,281
|
|
14.7
|
%
|
|
Masterbatch
Solutions
|
202,030
|
|
182,903
|
|
19,127
|
|
10.5
|
%
|
|
189,326
|
|
165,412
|
|
23,914
|
|
14.5
|
%
|
|
Engineered
Plastics
|
194,516
|
|
180,698
|
|
13,818
|
|
7.6
|
%
|
|
127,364
|
|
114,342
|
|
13,022
|
|
11.4
|
%
|
|
Specialty
powders
|
82,357
|
|
86,947
|
|
(4,590)
|
|
(5.3)
|
%
|
|
100,102
|
|
102,082
|
|
(1,980)
|
|
(1.9)
|
%
|
|
Distribution
Services
|
88,072
|
|
89,908
|
|
(1,836)
|
|
(2.0)
|
%
|
|
110,055
|
|
105,412
|
|
4,643
|
|
4.4
|
%
|
|
Total Consolidated
|
$
|
615,053
|
|
$
|
585,397
|
|
$
|
29,656
|
|
5.1
|
%
|
|
544,596
|
|
502,716
|
|
41,880
|
|
8.3
|
%
|
|
A. SCHULMAN,
INC.
SUPPLEMENTAL
SEGMENT INFORMATION
(continued)
|
|
|
|
|
Three months ended
November 30,
|
|
2014
|
|
2013
|
|
Unaudited
(In thousands, except
for %'s)
|
|
Segment gross
profit
|
|
|
|
|
|
|
EMEA
|
$
|
49,706
|
|
|
$
|
51,940
|
|
|
Americas
|
30,279
|
|
|
21,433
|
|
|
APAC
|
7,250
|
|
|
6,623
|
|
|
Total segment gross
profit
|
87,235
|
|
|
79,996
|
|
|
Inventory
step-up
|
(341)
|
|
|
(417)
|
|
|
Accelerated
depreciation and restructuring related
|
—
|
|
|
(471)
|
|
|
Costs related to
acquisitions and integrations
|
(50)
|
|
|
—
|
|
|
Total gross
profit
|
$
|
86,844
|
|
|
$
|
79,108
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
|
|
|
|
|
EMEA
|
$
|
20,039
|
|
|
$
|
20,417
|
|
|
Americas
|
11,988
|
|
|
7,364
|
|
|
APAC
|
3,508
|
|
|
3,366
|
|
|
Total segment
operating income
|
35,535
|
|
|
31,147
|
|
|
Corporate
|
(7,484)
|
|
|
(6,683)
|
|
|
Costs related to
acquisitions and integrations
|
(1,053)
|
|
|
(635)
|
|
|
Restructuring and
related costs
|
(5,579)
|
|
|
(3,372)
|
|
|
Accelerated
depreciation
|
—
|
|
|
(108)
|
|
|
Inventory
step-up
|
(341)
|
|
|
(417)
|
|
|
Operating
income
|
21,078
|
|
|
19,932
|
|
|
Interest expense,
net
|
(2,264)
|
|
|
(2,129)
|
|
|
Foreign currency
transaction gains (losses)
|
(1,099)
|
|
|
(682)
|
|
|
Other income
(expense), net
|
159
|
|
|
78
|
|
|
Income from
continuing operations before taxes
|
$
|
17,874
|
|
|
$
|
17,199
|
|
|
|
|
|
|
|
|
Capacity
utilization
|
|
|
|
|
|
|
EMEA
|
87
|
%
|
|
87
|
%
|
|
Americas
|
67
|
%
|
|
67
|
%
|
|
APAC
|
65
|
%
|
|
67
|
%
|
|
Worldwide
|
76
|
%
|
|
77
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/a-schulman-reports-fiscal-2015-first-quarter-results-and-reaffirms-full-year-guidance-300016793.html
SOURCE A. Schulman, Inc.