AKRON, Ohio, Oct. 20, 2015 /PRNewswire/ -- A. Schulman, Inc.
(Nasdaq: SHLM) today announced earnings for the fiscal 2015 fourth
quarter ended August 31, 2015.
Bernard Rzepka, president and
chief executive officer, said, "Through our transformational
acquisition of Citadel, we made significant strides toward our
strategic vision of becoming the premier plastics solutions
provider. At the same time, we continued to deliver strong
operational and financial results. For three consecutive
years, excluding the impact from foreign currency, we achieved
year-over-year growth in sales, gross margin and EBITDA. These
results give us confidence that we have the team and the tools in
place to deliver further profitable growth in fiscal 2016 and
beyond."
Joseph Levanduski, executive vice
president & chief financial officer, said, "Through our intense
efforts, we overcame significant foreign currency headwinds and
improved our adjusted consolidated gross profit by 10% for the year
and 28% for the quarter. Our operational focus, acquisitions and
organic growth initiatives collectively delivered these strong
results. Since the acquisition of Citadel, we have made steady
progress in debt reduction and have succeeded in lowering debt
levels from the June opening balance sheet by $64 million. We are on track to achieve a 2.5x
net leverage within fiscal 2017, while supporting our growth
initiatives."
Engineered Plastics Consolidation
As part of the
integration of its Citadel Plastics acquisition announced earlier
this year, the Company is consolidating its United States and Canada ("USCAN") production facilities. The
Company will close three facilities in Evansville, Indiana and the production from
these facilities will be consolidated into other facilities in
Evansville to improve our capacity
utilization. Additionally, the Company will relocate production of
its Engineered Plastics products from its Akron, Ohio plant to one of the Evansville facilities. The Company intends to
invest in our Akron plant in order
to grow our Masterbatch product family. Overall, the Company
expects to reduce headcount by approximately 26 people.
On a pre-tax basis, the Company expects the Engineered Plastic
consolidation to deliver approximately $9.5
million in annual savings, of which approximately
$4 million is expected in fiscal 2016
and the remainder will be recognized in fiscal year 2017. The
Company expects approximately $2 to $3
million of pretax employee-related cash and other charges as
well as approximately $5 to $6
million of pretax machinery and equipment accelerated
depreciation. Costs associated with the plan are expected to be
recognized through December 2016 as
the Company completes the facility consolidation activities.
"We are swiftly executing our integration of Citadel," said
Rzepka. "While these decisions are not easy for those impacted, the
additional Citadel plants in the Evansville area required that we evaluate
capacity utilization and manufacturing capabilities and achieve
efficiencies and cost savings. The consolidation of our Engineered
Plastics business illustrates our continuing commitment to
right-sizing our capacity and affirms our commitment to capturing
our stated synergy savings of $25
million by the end of 2016."
Fiscal Fourth-Quarter Results
Consolidated net sales
for the fiscal 2015 fourth quarter were $674.0 million, compared with $627.4 million in the same prior-year quarter.
Net sales from Citadel and prior 2014 acquisitions, which includes
legacy volume consolidated during the integration process,
contributed $128.5 million of revenue
during the quarter. These contributions were partially offset
by $79.8 million of unfavorable
foreign currency translation. Adjusted gross margin in the fourth
quarter as a percent of net sales improved to 16.2% compared with
13.6% in the prior-year period.
The Company reported profit from continuing operations of
$0.75 per diluted share. On an
adjusted basis, excluding financing, restructuring and
acquisitions-related costs, the Company generated net income of
$0.64 per diluted share.
Europe, Middle East and Africa ('EMEA") net sales were $326.7 million compared with $388.6 million in the same prior-year period. The
unfavorable impact of foreign currency translation was $64.1 million. EMEA adjusted gross profit was
$44 million. Excluding the negative
impact of foreign currency translation of $8.3 million, adjusted gross profit increased by
$2.2 million, or 4.5%, primarily due
to improved product mix as well as the incremental contribution of
the Specialty Plastics acquisition.
Net sales for the U.S. and Canada ("USCAN") were $195.3 million in the fourth quarter, an increase
of 41% compared with the same prior-year period primarily as a
result of the Citadel acquisition.
USCAN adjusted gross profit was $34.1
million, an increase of $11.7
million from the same prior-year period. The strong gross
margin gains came both from Citadel's contribution, and
improvements across A. Schulman's legacy businesses.
Latin America's ("LATAM") net
sales for the quarter were $45.3
million, a decrease of $4.2
million compared with the same prior-year period. Excluding
the unfavorable impact of foreign currency translation of
$10.5 million, core revenue growth
accelerated to 12.7%. LATAM adjusted gross profit was $9.9 million, an increase of $3.7 million primarily due to the benefits of
improved product mix and operations. Operating margins improved
from 4.2% to 12.1% during the quarter.
Asia Pacific ("APAC") reported
net sales were $49.5 million, which
included acquisition contribution of $2.8
million, and a negative foreign exchange impact of
$4.5 million. APAC adjusted gross
profit was $6.8 million, an increase
of $0.3 million compared with the
prior-year period. Gross profit benefited from smart savings
initiatives and increased organic volume. Operating margins
improved from 5.3% to 7.1% during the quarter.
Engineered Composites ("EC") net sales for the quarter were
$57.1 million from the acquisition
date of June 1, 2015. Organic volumes
in the legacy EC business improved over historical levels. EC gross
profit for the quarter was $14.5
million, or 25.4% of net sales.
Working Capital/Cash Flow
Cash provided from
operations was $60.2 million in the
twelve months ended August 31, 2015.
Working capital days were 64 days in the fourth quarter of fiscal
2015 versus 57 days at the end of the comparable period.
Capital expenditures for fiscal 2015 were $42.6 million compared with $35.1 million last year. These expenditures were
primarily related to strategic investments in the Company's global
manufacturing facilities and technical innovation and collaboration
centers focused on organic growth and new product development.
During the year, the Company declared and paid quarterly cash
dividends to common shareholders of $24.0
million, or $0.82 per common
share consistent with our past strategy of providing an attractive
yield to shareholders in addition to share price appreciation.
Year-to-Date Results
Net sales for the year were
$2.4 billion, compared with
$2.5 billion for the same prior-year
period. Fiscal year net sales results included a negative foreign
currency translation of $257.1
million, and contributions from acquisitions of $258.3 million.
Operating income was $70.4
million, a decrease of $11.9
million compared with the same prior-year period. Total
operating income before certain items was $120.7 million, an increase of $20.9 million or 21% compared with last year.
Excluding the negative impact of foreign currency translation of
$11.8 million, total operating income
before certain items increased 33% versus the comparable period.
Organic growth contributed an incremental $10.3 million while recent acquisitions added
$22.4 million.
Business Outlook
The Company initiates a fiscal 2016
adjusted net income guidance range of $2.80
to $2.85 per diluted share including the accretive impact of
the Citadel acquisition.
"We are excited about the opportunities that Citadel brings to
us. We've taken a transformative step forward in achieving our
long-term strategic goals, one of them being rebalancing our
regional footprint. Given the current volatile markets, we expect
another challenging year; however, we are committed to achieving
further profitable growth through a focus on execution, including
the continued seamless integration of Citadel," Rzepka added.
Conference Call on the Web
A live Internet broadcast
of A. Schulman's conference call regarding fiscal 2015
fourth-quarter earnings can be accessed at 10:00 a.m. Eastern Time on October 21, 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 5,000 people and has 58 manufacturing facilities
globally. A. Schulman reported net sales of approximately
$2.4 billion for the fiscal year
ended August 31, 2015. 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, net income per diluted share excluding certain items and
adjusted EBITDA, 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, August not be reported by all of the Company's
competitors and August 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
August 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 August 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 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;
- operating problems with our information systems as a result of
system security failures such as viruses, cyber-attacks or other
causes;
- the impact of the indebtedness incurred to finance the Citadel acquisition;
- integration of the business of Citadel with our existing
business, including the risk that the integration will be more
costly or more time consuming and complex than anticipated;
- our ability to achieve the anticipated synergies, cost savings
and other benefits from the Citadel
acquisition;
- transaction and acquisition-related costs incurred in
connection with the Citadel
acquisition and related transactions; and
- substantial time devoted by management to the integration of
the Citadel acquisition.
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, 2015. 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
August 31,
|
|
|
Year ended August
31,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Unaudited
(In thousands, except
per share data)
|
|
Net
sales
|
$
|
674,019
|
|
|
$
|
627,358
|
|
|
$
|
2,392,225
|
|
|
$
|
2,446,998
|
|
Cost of
sales
|
568,684
|
|
|
542,721
|
|
|
2,031,215
|
|
|
2,116,990
|
|
Selling, general and
administrative expenses
|
80,762
|
|
|
60,838
|
|
|
276,244
|
|
|
242,486
|
|
Restructuring
expense
|
3,808
|
|
|
300
|
|
|
14,338
|
|
|
4,883
|
|
Asset
impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
Curtailment and
settlement (gains) losses
|
—
|
|
|
214
|
|
|
—
|
|
|
214
|
|
Operating
income
|
20,765
|
|
|
23,285
|
|
|
70,428
|
|
|
82,321
|
|
Interest
expense
|
15,325
|
|
|
2,391
|
|
|
22,613
|
|
|
8,503
|
|
Bridge financing
fees
|
—
|
|
|
—
|
|
|
18,750
|
|
|
—
|
|
Foreign currency
transaction (gains) losses
|
266
|
|
|
86
|
|
|
3,363
|
|
|
2,206
|
|
Other (income)
expense, net
|
(538)
|
|
|
(242)
|
|
|
(1,438)
|
|
|
(720)
|
|
Gain on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
(1,290)
|
|
|
—
|
|
Income (loss) from
continuing operations before taxes
|
5,712
|
|
|
21,050
|
|
|
28,430
|
|
|
72,332
|
|
Provision (benefit)
for U.S. and foreign income taxes
|
(18,302)
|
|
|
5,886
|
|
|
499
|
|
|
18,542
|
|
Income (loss) from
continuing operations
|
24,014
|
|
|
15,164
|
|
|
27,931
|
|
|
53,790
|
|
Income (loss) from
discontinued operations, net of tax
|
(47)
|
|
|
223
|
|
|
(133)
|
|
|
3,202
|
|
Net income
(loss)
|
23,967
|
|
|
15,387
|
|
|
27,798
|
|
|
56,992
|
|
Noncontrolling
interests
|
(279)
|
|
|
(215)
|
|
|
(1,169)
|
|
|
(799)
|
|
Net income (loss)
attributable to A. Schulman, Inc.
|
23,688
|
|
|
15,172
|
|
|
26,629
|
|
|
56,193
|
|
Convertible special
stock dividends
|
(1,875)
|
|
|
—
|
|
|
(2,438)
|
|
|
—
|
|
Net income (loss)
available to A. Schulman, Inc. common stockholders
|
$
|
21,813
|
|
|
$
|
15,172
|
|
|
$
|
24,191
|
|
|
$
|
56,193
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,220
|
|
|
29,088
|
|
|
29,149
|
|
|
29,061
|
|
Diluted
|
29,486
|
|
|
29,517
|
|
|
29,483
|
|
|
29,362
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share available to A. Schulman, Inc. common
stockholders
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.75
|
|
|
$
|
0.51
|
|
|
$
|
0.83
|
|
|
$
|
1.82
|
|
Income (loss) from
discontinued operations
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
Net income (loss)
available to A. Schulman, Inc. common stockholders
|
$
|
0.75
|
|
|
$
|
0.52
|
|
|
$
|
0.83
|
|
|
$
|
1.93
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share available to A. Schulman, Inc. common
stockholders
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.75
|
|
|
$
|
0.51
|
|
|
$
|
0.83
|
|
|
$
|
1.80
|
|
Income (loss) from
discontinued operations
|
$
|
(0.01)
|
|
|
$
|
0.01
|
|
|
$
|
(0.01)
|
|
|
$
|
0.11
|
|
Net income (loss)
available to A. Schulman, Inc. common stockholders
|
$
|
0.74
|
|
|
$
|
0.52
|
|
|
$
|
0.82
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
$
|
0.205
|
|
|
$
|
0.200
|
|
|
$
|
0.820
|
|
|
$
|
0.800
|
|
Cash dividends per
share of convertible special stock
|
$
|
14.500
|
|
|
$
|
—
|
|
|
$
|
14.500
|
|
|
$
|
—
|
|
A. SCHULMAN,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
August 31,
2015
|
|
August 31,
2014
|
|
Unaudited
(In
thousands)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
96,872
|
|
|
$
|
135,493
|
|
Accounts receivable,
net
|
413,943
|
|
|
384,444
|
|
Inventories
|
317,328
|
|
|
292,141
|
|
Prepaid expenses and
other current assets
|
60,205
|
|
|
40,473
|
|
Total current
assets
|
888,348
|
|
|
852,551
|
|
Property, plant
and equipment, at cost:
|
|
|
|
Land and
improvements
|
31,674
|
|
|
28,439
|
|
Buildings and
leasehold improvements
|
164,759
|
|
|
160,858
|
|
Machinery and
equipment
|
427,183
|
|
|
398,563
|
|
Furniture and
fixtures
|
34,393
|
|
|
41,255
|
|
Construction in
progress
|
23,866
|
|
|
16,718
|
|
Gross property,
plant and equipment
|
681,875
|
|
|
645,833
|
|
Accumulated
depreciation
|
367,381
|
|
|
391,912
|
|
Net property,
plant and equipment
|
314,494
|
|
|
253,921
|
|
Deferred charges and
other noncurrent assets
|
90,749
|
|
|
65,079
|
|
Goodwill
|
623,583
|
|
|
202,299
|
|
Intangible assets,
net
|
434,537
|
|
|
138,634
|
|
Total
assets
|
$
|
2,351,711
|
|
|
$
|
1,512,484
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
305,385
|
|
|
$
|
314,957
|
|
U.S. and foreign
income taxes payable
|
4,205
|
|
|
6,385
|
|
Accrued payroll,
taxes and related benefits
|
56,192
|
|
|
54,199
|
|
Other accrued
liabilities
|
70,824
|
|
|
46,054
|
|
Short-term
debt
|
20,710
|
|
|
31,748
|
|
Total current
liabilities
|
457,316
|
|
|
453,343
|
|
Long-term
debt
|
1,045,349
|
|
|
339,546
|
|
Pension
plans
|
117,889
|
|
|
129,949
|
|
Deferred income
taxes
|
115,537
|
|
|
23,826
|
|
Other long-term
liabilities
|
22,885
|
|
|
29,369
|
|
Total
liabilities
|
1,758,976
|
|
|
976,033
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Convertible special
stock, no par value
|
120,289
|
|
|
—
|
|
Common stock, $1 par
value, authorized - 75,000 shares, issued - 48,369 shares in 2015
and 48,185 shares in 2014
|
48,369
|
|
|
48,185
|
|
Additional paid-in
capital
|
274,319
|
|
|
268,545
|
|
Accumulated other
comprehensive income (loss)
|
(83,460)
|
|
|
(16,691)
|
|
Retained
earnings
|
607,690
|
|
|
606,898
|
|
Treasury stock, at
cost, 19,077 shares in 2015 and 18,973 shares in 2014
|
(383,121)
|
|
|
(379,894)
|
|
Total A. Schulman,
Inc.'s stockholders' equity
|
584,086
|
|
|
527,043
|
|
Noncontrolling
interests
|
8,649
|
|
|
9,408
|
|
Total
equity
|
592,735
|
|
|
536,451
|
|
Total liabilities
and equity
|
$
|
2,351,711
|
|
|
$
|
1,512,484
|
|
A. SCHULMAN,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Year ended August
31,
|
|
2015
|
|
2014
|
|
Unaudited
|
|
(In
thousands)
|
Operating from
continuing and discontinued operations:
|
|
|
|
Net income
|
$
|
27,798
|
|
|
$
|
56,992
|
|
Adjustments to
reconcile net income to net cash provided from (used in) operating
activities:
|
|
|
|
Depreciation
|
37,257
|
|
|
33,697
|
|
Amortization
|
21,983
|
|
|
14,207
|
|
Deferred tax
provision
|
(19,253)
|
|
|
(3,007)
|
|
Pension,
postretirement benefits and other compensation
|
7,560
|
|
|
10,802
|
|
Restricted stock
compensation - CEO transition costs, net of cash
|
4,789
|
|
|
—
|
|
Asset
impairment
|
—
|
|
|
104
|
|
Curtailment and
settlement (gains) losses
|
—
|
|
|
214
|
|
Gain on sale of
assets from discontinued operations
|
—
|
|
|
(3,365)
|
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(2,395)
|
|
|
(5,875)
|
|
Inventories
|
(17,382)
|
|
|
7,099
|
|
Accounts
payable
|
(8,139)
|
|
|
(3,497)
|
|
Income
taxes
|
(3,342)
|
|
|
(1,372)
|
|
Tax (windfall)
shortfall related to share-based incentive compensation
|
(506)
|
|
|
—
|
|
Accrued payroll and
other accrued liabilities
|
18,359
|
|
|
5,189
|
|
Other assets and
long-term liabilities
|
(6,559)
|
|
|
1,954
|
|
Net cash provided
from (used in) operating activities
|
60,170
|
|
|
113,142
|
|
Investing from
continuing and discontinued operations:
|
|
|
|
Expenditures for
property, plant and equipment
|
(42,587)
|
|
|
(35,089)
|
|
Proceeds from the
sale of assets
|
1,985
|
|
|
6,004
|
|
Investment in equity
investees
|
(12,456)
|
|
|
—
|
|
Business
acquisitions, net of cash
|
(808,258)
|
|
|
(206,625)
|
|
Net cash provided
from (used in) investing activities
|
(861,316)
|
|
|
(235,710)
|
|
Financing from
continuing and discontinued operations:
|
|
|
|
Cash dividends paid
to common stockholders
|
(24,024)
|
|
|
(23,665)
|
|
Cash dividends paid
to special stockholders
|
(1,813)
|
|
|
—
|
|
Increase (decrease)
in short-term debt
|
(8,759)
|
|
|
13,774
|
|
Borrowings on
long-term debt
|
1,430,513
|
|
|
795,745
|
|
Repayments on
long-term debt including current portion
|
(713,717)
|
|
|
(653,894)
|
|
Payment of debt
issuance costs
|
(15,007)
|
|
|
(1,782)
|
|
Noncontrolling
interests' contributions (distributions)
|
(1,750)
|
|
|
600
|
|
Tax windfall
(shortfall) related to share-based incentive
compensation
|
506
|
|
|
—
|
|
Issuances of common
stock, common and treasury
|
289
|
|
|
487
|
|
Issuances of
convertible special stock, net
|
120,289
|
|
|
—
|
|
Redemptions of common
stock
|
(4,999)
|
|
|
(361)
|
|
Purchases of treasury
stock
|
(3,335)
|
|
|
(1,116)
|
|
Net cash provided
from (used in) financing activities
|
778,193
|
|
|
129,788
|
|
Effect of exchange
rate changes on cash
|
(15,668)
|
|
|
(5,781)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(38,621)
|
|
|
1,439
|
|
Cash and cash
equivalents at beginning of year
|
135,493
|
|
|
134,054
|
|
Cash and cash
equivalents at end of year
|
$
|
96,872
|
|
|
$
|
135,493
|
|
|
|
|
|
Cash paid during
the year for:
|
|
|
|
Interest
|
$
|
11,187
|
|
|
$
|
7,578
|
|
Income
taxes
|
$
|
22,651
|
|
|
$
|
21,720
|
|
A. SCHULMAN,
INC.
|
Reconciliation of
GAAP and Non-GAAP Financial Measures
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
August 31, 2015
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Operating Income
per Pound
|
|
Non Operating
(income) Expense
|
|
Income tax expense
(benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
568,684
|
|
|
15.6
|
%
|
|
$
|
80,762
|
|
|
$
|
3,808
|
|
|
$
|
20,765
|
|
|
$
|
0.032
|
|
|
$
|
15,053
|
|
|
$
|
(18,302)
|
|
|
$
|
21,813
|
|
|
$
|
0.74
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset write-downs
(1)
|
|
(81)
|
|
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
|
|
—
|
|
|
28
|
|
|
53
|
|
|
—
|
|
Costs related to
acquisitions (2)
|
|
(93)
|
|
|
|
|
(9,143)
|
|
|
—
|
|
|
9,236
|
|
|
|
|
(80)
|
|
|
116
|
|
|
9,200
|
|
|
0.31
|
|
Restructuring and
related costs (3)
|
|
(1,041)
|
|
|
|
|
(3,259)
|
|
|
(3,808)
|
|
|
8,108
|
|
|
|
|
—
|
|
|
1,181
|
|
|
6,927
|
|
|
0.23
|
|
Inventory step-up
(4)
|
|
(2,741)
|
|
|
|
|
—
|
|
|
—
|
|
|
2,741
|
|
|
|
|
—
|
|
|
110
|
|
|
2,631
|
|
|
0.09
|
|
Acquisition-related
interest (5)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(1,312)
|
|
|
122
|
|
|
1,190
|
|
|
0.05
|
|
Tax benefits
(charges) (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
23,106
|
|
|
(23,106)
|
|
|
(0.78)
|
|
Loss (income) from
discontinued operations
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
47
|
|
|
—
|
|
Total certain
items
|
|
(3,956)
|
|
|
0.6
|
%
|
|
(12,402)
|
|
|
(3,808)
|
|
|
20,166
|
|
|
0.031
|
|
|
(1,392)
|
|
|
24,663
|
|
|
(3,058)
|
|
|
(0.10)
|
|
As
Adjusted
|
|
$
|
564,728
|
|
|
16.2
|
%
|
|
$
|
68,360
|
|
|
$
|
—
|
|
|
$
|
40,931
|
|
|
$
|
0.063
|
|
|
$
|
13,661
|
|
|
$
|
6,361
|
|
|
$
|
18,755
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
10.1
|
%
|
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
August 31, 2014
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Operating Income
per Pound
|
|
Non Operating
(income) Expense
|
|
Income tax expense
(benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
542,721
|
|
|
13.5
|
%
|
|
$
|
60,838
|
|
|
$
|
300
|
|
|
$
|
23,285
|
|
|
$
|
0.043
|
|
|
$
|
2,235
|
|
|
$
|
5,886
|
|
|
$
|
15,172
|
|
|
$
|
0.52
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to
acquisitions (2)
|
|
—
|
|
|
|
|
(2,644)
|
|
|
—
|
|
|
2,644
|
|
|
|
|
—
|
|
|
9
|
|
|
2,635
|
|
|
0.09
|
|
Restructuring and
related costs (3)
|
|
(285)
|
|
|
|
|
(710)
|
|
|
(300)
|
|
|
1,509
|
|
|
|
|
—
|
|
|
46
|
|
|
1,463
|
|
|
0.05
|
|
Inventory step-up
(4)
|
|
(269)
|
|
|
|
|
—
|
|
|
—
|
|
|
269
|
|
|
|
|
—
|
|
|
(54)
|
|
|
323
|
|
|
0.01
|
|
Tax benefits
(charges) (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
(110)
|
|
|
110
|
|
|
—
|
|
Loss (income) from
discontinued operations
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
(222)
|
|
|
(0.01)
|
|
Total certain
items
|
|
(554)
|
|
|
0.1
|
%
|
|
(3,354)
|
|
|
(300)
|
|
|
4,422
|
|
|
0.009
|
|
|
—
|
|
|
(109)
|
|
|
4,309
|
|
|
0.14
|
|
As
Adjusted
|
|
$
|
542,167
|
|
|
13.6
|
%
|
|
$
|
57,484
|
|
|
$
|
—
|
|
|
$
|
27,707
|
|
|
$
|
0.052
|
|
|
$
|
2,235
|
|
|
$
|
5,777
|
|
|
$
|
19,481
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
9.2
|
%
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. SCHULMAN,
INC.
|
Reconciliation of
GAAP and Non-GAAP Financial Measures.
|
Con't
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended August
31, 2015
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Operating Income
per Pound
|
|
Non Operating
(income) Expense
|
|
Income tax expense
(benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
2,031,215
|
|
|
15.1
|
%
|
|
$
|
276,244
|
|
|
$
|
14,338
|
|
|
$
|
70,428
|
|
|
$
|
0.031
|
|
|
$
|
41,998
|
|
|
$
|
499
|
|
|
$
|
24,191
|
|
|
$
|
0.82
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset write-downs
(1)
|
|
(408)
|
|
|
|
|
—
|
|
|
—
|
|
|
408
|
|
|
|
|
—
|
|
|
28
|
|
|
380
|
|
|
0.01
|
|
Costs related to
acquisitions (2)
|
|
(267)
|
|
|
|
|
(16,941)
|
|
|
—
|
|
|
17,208
|
|
|
|
|
(81)
|
|
|
417
|
|
|
16,872
|
|
|
0.57
|
|
Restructuring and
related costs (3)
|
|
(1,388)
|
|
|
|
|
(7,685)
|
|
|
(14,338)
|
|
|
23,411
|
|
|
|
|
—
|
|
|
4,335
|
|
|
19,076
|
|
|
0.65
|
|
Gain on early
extinguishment of debt (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
1,290
|
|
|
(427)
|
|
|
(863)
|
|
|
(0.03)
|
|
CEO transition costs
(8)
|
|
—
|
|
|
|
|
(6,167)
|
|
|
—
|
|
|
6,167
|
|
|
|
|
—
|
|
|
—
|
|
|
6,167
|
|
|
0.21
|
|
Inventory step-up
(4)
|
|
(3,082)
|
|
|
|
|
—
|
|
|
—
|
|
|
3,082
|
|
|
|
|
—
|
|
|
212
|
|
|
2,870
|
|
|
0.10
|
|
Acquisition-related
interest (5)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(20,445)
|
|
|
121
|
|
|
20,324
|
|
|
0.69
|
|
Tax benefits
(charges) (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
19,265
|
|
|
(19,265)
|
|
|
(0.65)
|
|
Loss (income) from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
|
|
—
|
|
Total certain
items
|
|
(5,145)
|
|
|
0.2
|
%
|
|
(30,793)
|
|
|
(14,338)
|
|
|
50,276
|
|
|
0.023
|
|
|
(19,236)
|
|
|
23,951
|
|
|
45,694
|
|
|
1.55
|
|
As
Adjusted
|
|
$
|
2,026,070
|
|
|
15.3
|
%
|
|
$
|
245,451
|
|
|
$
|
—
|
|
|
$
|
120,704
|
|
|
$
|
0.054
|
|
|
$
|
22,762
|
|
|
$
|
24,450
|
|
|
$
|
69,885
|
|
|
$
|
2.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
10.3
|
%
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended August
31, 2014
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Operating Income
per Pound
|
|
Non Operating
(income) Expense
|
|
Income tax expense
(benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
2,116,990
|
|
|
13.5
|
%
|
|
$
|
242,486
|
|
|
$
|
4,883
|
|
|
$
|
82,321
|
|
|
$
|
0.039
|
|
|
$
|
9,989
|
|
|
$
|
18,542
|
|
|
$
|
56,193
|
|
|
$
|
1.91
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset write-downs
(1)
|
|
(107)
|
|
|
|
|
—
|
|
|
—
|
|
|
211
|
|
|
|
|
—
|
|
|
34
|
|
|
177
|
|
|
0.01
|
|
Costs related to
acquisitions (2)
|
|
(34)
|
|
|
|
|
(5,987)
|
|
|
—
|
|
|
6,021
|
|
|
|
|
(8)
|
|
|
154
|
|
|
5,875
|
|
|
0.20
|
|
Restructuring and
related costs (3)
|
|
(935)
|
|
|
|
|
(3,800)
|
|
|
(4,883)
|
|
|
9,832
|
|
|
|
|
(287)
|
|
|
963
|
|
|
9,156
|
|
|
0.31
|
|
Inventory step-up
(4)
|
|
(1,468)
|
|
|
|
|
—
|
|
|
—
|
|
|
1,468
|
|
|
|
|
—
|
|
|
44
|
|
|
1,424
|
|
|
0.05
|
|
Tax benefits
(charges) (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
316
|
|
|
(316)
|
|
|
(0.01)
|
|
Loss (income) from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,202)
|
|
|
(0.11)
|
|
Total certain
items
|
|
(2,544)
|
|
|
0.1
|
%
|
|
(9,787)
|
|
|
(4,883)
|
|
|
17,532
|
|
|
0.009
|
|
|
(295)
|
|
|
1,511
|
|
|
13,114
|
|
|
0.45
|
|
As
Adjusted
|
|
$
|
2,114,446
|
|
|
13.6
|
%
|
|
$
|
232,699
|
|
|
$
|
—
|
|
|
$
|
99,853
|
|
|
$
|
0.048
|
|
|
$
|
9,694
|
|
|
$
|
20,053
|
|
|
$
|
69,307
|
|
|
$
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
9.5
|
%
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 - Asset write-downs
primarily relate to asset impairments and accelerated
depreciation.
|
2 - Costs related to
acquisitions primarily include third party professional, legal, IT
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 and
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 represent the amortization of adjustments to fair value of
inventory acquired for acquisition purchase accounting.
|
5 - Primarily relates
to bridge financing fees.
|
6 - Tax benefits
(charges) represent the Company's adjustment of reported tax
expense to non-GAAP tax expense based on the overall annual
non-GAAP effective tax rate.
|
7 - Represents a
pre-tax net gain of $1.3 million on the early extinguishment of
euro notes repaid in February 2015.
|
8 - CEO transition
costs represent a one-time charge for the modification and
accelerated vesting upon retirement of the outstanding equity
compensation awards granted to Joseph M. Gingo in 2013 and
2014.
|
A. SCHULMAN,
INC.
|
ADJUSTED EBITDA
RECONCILIATION
|
|
|
|
|
|
Three months ended
August 31,
|
|
Year ended August
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Unaudited
(In
thousands)
|
|
|
|
|
|
|
|
|
Net income
available to A. Schulman, Inc. common stockholders, as adjusted
(1)
|
$
|
18,755
|
|
|
$
|
19,481
|
|
|
$
|
69,885
|
|
|
$
|
69,307
|
|
Interest expense, as
adjusted (2)
|
14,014
|
|
|
2,392
|
|
|
20,918
|
|
|
8,216
|
|
Provision for U.S.
and foreign income taxes, as adjusted (1)
|
6,361
|
|
|
5,777
|
|
|
24,450
|
|
|
20,053
|
|
Depreciation, as
adjusted (3)
|
10,664
|
|
|
8,945
|
|
|
36,821
|
|
|
33,589
|
|
Amortization
|
10,096
|
|
|
3,864
|
|
|
21,983
|
|
|
14,172
|
|
Minority
Interest
|
279
|
|
|
215
|
|
|
1,169
|
|
|
799
|
|
Special Stock
Dividends
|
1,875
|
|
|
—
|
|
|
2,438
|
|
|
—
|
|
EBITDA, as
adjusted
|
$
|
62,044
|
|
|
$
|
40,674
|
|
|
$
|
177,664
|
|
|
$
|
146,136
|
|
|
|
|
|
|
|
|
|
1 - For a list of
certain items to reconcile between "net income available to A.
Schulman, Inc. common stockholders" and "net income available to A.
Schulman, Inc. common stockholders, as adjusted", refer to the
reconciliation of GAAP and non-GAAP financial measures.
|
|
2 - Adjusted interest
expense excludes bridge financing fees and the write-off of
deferred financing costs related to obtaining new financing during
the third quarter of fiscal 2015.
|
|
3 - Adjusted
depreciation excludes accelerated depreciation charges as they are
already included in (1).
|
A. SCHULMAN,
INC.
|
SUPPLEMENTAL
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
August 31,
|
EMEA
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
29,253
|
|
|
$
|
35,138
|
|
|
$
|
(5,885)
|
|
|
(16.7)
|
%
|
|
11,768
|
|
|
11,514
|
|
|
254
|
|
|
2.2
|
%
|
Masterbatch
solutions
|
|
100,787
|
|
|
115,889
|
|
|
(15,102)
|
|
|
(13.0)
|
%
|
|
99,920
|
|
|
91,599
|
|
|
8,321
|
|
|
9.1
|
%
|
Engineered
plastics
|
|
96,201
|
|
|
114,033
|
|
|
(17,832)
|
|
|
(15.6)
|
%
|
|
70,895
|
|
|
71,881
|
|
|
(986)
|
|
|
(1.4)
|
%
|
Specialty
powders
|
|
40,062
|
|
|
43,211
|
|
|
(3,149)
|
|
|
(7.3)
|
%
|
|
43,576
|
|
|
44,873
|
|
|
(1,297)
|
|
|
(2.9)
|
%
|
Distribution
services
|
|
60,460
|
|
|
80,322
|
|
|
(19,862)
|
|
|
(24.7)
|
%
|
|
78,873
|
|
|
94,941
|
|
|
(16,068)
|
|
|
(16.9)
|
%
|
Total EMEA
|
|
$
|
326,763
|
|
|
$
|
388,593
|
|
|
$
|
(61,830)
|
|
|
(15.9)
|
%
|
|
305,032
|
|
|
314,808
|
|
|
(9,776)
|
|
|
(3.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
August 31,
|
USCAN
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
12,734
|
|
|
$
|
9,757
|
|
|
$
|
2,977
|
|
|
30.5
|
%
|
|
4,358
|
|
|
3,020
|
|
|
1,338
|
|
|
44.3
|
%
|
Masterbatch
solutions
|
|
37,033
|
|
|
41,567
|
|
|
(4,534)
|
|
|
(10.9)
|
%
|
|
53,061
|
|
|
54,473
|
|
|
(1,412)
|
|
|
(2.6)
|
%
|
Engineered
plastics
|
|
104,158
|
|
|
42,336
|
|
|
61,822
|
|
|
146.0
|
%
|
|
101,198
|
|
|
27,084
|
|
|
74,114
|
|
|
273.6
|
%
|
Specialty
powders
|
|
22,692
|
|
|
28,526
|
|
|
(5,834)
|
|
|
(20.5)
|
%
|
|
33,776
|
|
|
43,895
|
|
|
(10,119)
|
|
|
(23.1)
|
%
|
Distribution
services
|
|
18,655
|
|
|
16,587
|
|
|
2,068
|
|
|
12.5
|
%
|
|
23,403
|
|
|
17,036
|
|
|
6,367
|
|
|
37.4
|
%
|
Total
USCAN
|
|
$
|
195,272
|
|
|
$
|
138,773
|
|
|
$
|
56,499
|
|
|
40.7
|
%
|
|
215,796
|
|
|
145,508
|
|
|
70,288
|
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
August 31,
|
LATAM
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
1,129
|
|
|
$
|
1,061
|
|
|
$
|
68
|
|
|
6.4
|
%
|
|
488
|
|
|
441
|
|
|
47
|
|
|
10.7
|
%
|
Masterbatch
solutions
|
|
25,232
|
|
|
24,592
|
|
|
640
|
|
|
2.6
|
%
|
|
17,895
|
|
|
16,394
|
|
|
1,501
|
|
|
9.2
|
%
|
Engineered
plastics
|
|
11,363
|
|
|
13,055
|
|
|
(1,692)
|
|
|
(13.0)
|
%
|
|
9,137
|
|
|
9,454
|
|
|
(317)
|
|
|
(3.4)
|
%
|
Specialty
powders
|
|
7,604
|
|
|
10,857
|
|
|
(3,253)
|
|
|
(30.0)
|
%
|
|
7,607
|
|
|
9,728
|
|
|
(2,121)
|
|
|
(21.8)
|
%
|
Distribution
services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
Total
LATAM
|
|
$
|
45,328
|
|
|
$
|
49,565
|
|
|
$
|
(4,237)
|
|
|
(8.5)
|
%
|
|
35,127
|
|
|
36,017
|
|
|
(890)
|
|
|
(2.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
August 31,
|
APAC
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
2,544
|
|
|
$
|
1,346
|
|
|
$
|
1,198
|
|
|
89.0
|
%
|
|
2,826
|
|
|
1,048
|
|
|
1,778
|
|
|
169.7
|
%
|
Masterbatch
solutions
|
|
20,070
|
|
|
19,991
|
|
|
79
|
|
|
0.4
|
%
|
|
20,907
|
|
|
18,442
|
|
|
2,465
|
|
|
13.4
|
%
|
Engineered
plastics
|
|
25,433
|
|
|
24,906
|
|
|
527
|
|
|
2.1
|
%
|
|
20,444
|
|
|
16,640
|
|
|
3,804
|
|
|
22.9
|
%
|
Specialty
powders
|
|
1,148
|
|
|
3,984
|
|
|
(2,836)
|
|
|
(71.2)
|
%
|
|
1,195
|
|
|
3,625
|
|
|
(2,430)
|
|
|
(67.0)
|
%
|
Distribution
services
|
|
328
|
|
|
200
|
|
|
128
|
|
|
64.0
|
%
|
|
506
|
|
|
241
|
|
|
265
|
|
|
110.0
|
%
|
Total APAC
|
|
$
|
49,523
|
|
|
$
|
50,427
|
|
|
$
|
(904)
|
|
|
(1.8)
|
%
|
|
45,878
|
|
|
39,996
|
|
|
5,882
|
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. SCHULMAN,
INC.
|
SUPPLEMENTAL
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Year ended August
31,
|
EMEA
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
131,565
|
|
|
$
|
146,629
|
|
|
$
|
(15,064)
|
|
|
(10.3)
|
%
|
|
50,088
|
|
|
48,600
|
|
|
1,488
|
|
|
3.1
|
%
|
Masterbatch
solutions
|
|
412,501
|
|
|
452,865
|
|
|
(40,364)
|
|
|
(8.9)
|
%
|
|
392,522
|
|
|
354,384
|
|
|
38,138
|
|
|
10.8
|
%
|
Engineered
plastics
|
|
391,406
|
|
|
475,015
|
|
|
(83,609)
|
|
|
(17.6)
|
%
|
|
278,038
|
|
|
294,292
|
|
|
(16,254)
|
|
|
(5.5)
|
%
|
Specialty
powders
|
|
154,701
|
|
|
181,153
|
|
|
(26,452)
|
|
|
(14.6)
|
%
|
|
177,618
|
|
|
181,533
|
|
|
(3,915)
|
|
|
(2.2)
|
%
|
Distribution
services
|
|
249,182
|
|
|
322,205
|
|
|
(73,023)
|
|
|
(22.7)
|
%
|
|
354,973
|
|
|
383,218
|
|
|
(28,245)
|
|
|
(7.4)
|
%
|
Total EMEA
|
|
$
|
1,339,355
|
|
|
$
|
1,577,867
|
|
|
$
|
(238,512)
|
|
|
(15.1)
|
%
|
|
1,253,239
|
|
|
1,262,027
|
|
|
(8,788)
|
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Year ended August
31,
|
USCAN
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
44,258
|
|
|
$
|
34,131
|
|
|
$
|
10,127
|
|
|
29.7
|
%
|
|
15,099
|
|
|
10,666
|
|
|
4,433
|
|
|
41.6
|
%
|
Masterbatch
solutions
|
|
156,541
|
|
|
137,031
|
|
|
19,510
|
|
|
14.2
|
%
|
|
213,413
|
|
|
200,283
|
|
|
13,130
|
|
|
6.6
|
%
|
Engineered
plastics
|
|
245,004
|
|
|
133,552
|
|
|
111,452
|
|
|
83.5
|
%
|
|
191,150
|
|
|
85,735
|
|
|
105,415
|
|
|
123.0
|
%
|
Specialty
powders
|
|
94,265
|
|
|
106,305
|
|
|
(12,040)
|
|
|
(11.3)
|
%
|
|
145,159
|
|
|
163,279
|
|
|
(18,120)
|
|
|
(11.1)
|
%
|
Distribution
services
|
|
70,425
|
|
|
64,031
|
|
|
6,394
|
|
|
10.0
|
%
|
|
79,890
|
|
|
66,882
|
|
|
13,008
|
|
|
19.4
|
%
|
Total
USCAN
|
|
$
|
610,493
|
|
|
$
|
475,050
|
|
|
$
|
135,443
|
|
|
28.5
|
%
|
|
644,711
|
|
|
526,845
|
|
|
117,866
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Year ended August
31,
|
LATAM
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
4,586
|
|
|
$
|
3,966
|
|
|
$
|
620
|
|
|
15.6
|
%
|
|
1,834
|
|
|
1,712
|
|
|
122
|
|
|
7.1
|
%
|
Masterbatch
solutions
|
|
91,204
|
|
|
95,220
|
|
|
(4,016)
|
|
|
(4.2)
|
%
|
|
64,211
|
|
|
62,666
|
|
|
1,545
|
|
|
2.5
|
%
|
Engineered
plastics
|
|
46,220
|
|
|
51,170
|
|
|
(4,950)
|
|
|
(9.7)
|
%
|
|
34,912
|
|
|
36,349
|
|
|
(1,437)
|
|
|
(4.0)
|
%
|
Specialty
powders
|
|
35,453
|
|
|
47,957
|
|
|
(12,504)
|
|
|
(26.1)
|
%
|
|
31,064
|
|
|
41,445
|
|
|
(10,381)
|
|
|
(25.0)
|
%
|
Distribution
services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
Total
LATAM
|
|
$
|
177,463
|
|
|
$
|
198,313
|
|
|
$
|
(20,850)
|
|
|
(10.5)
|
%
|
|
132,021
|
|
|
142,172
|
|
|
(10,151)
|
|
|
(7.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Year ended August
31,
|
APAC
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
11,044
|
|
|
$
|
3,495
|
|
|
$
|
7,549
|
|
|
216.0
|
%
|
|
8,636
|
|
|
2,748
|
|
|
5,888
|
|
|
214.3
|
%
|
Masterbatch
solutions
|
|
81,108
|
|
|
81,672
|
|
|
(564)
|
|
|
(0.7)
|
%
|
|
81,807
|
|
|
73,568
|
|
|
8,239
|
|
|
11.2
|
%
|
Engineered
plastics
|
|
104,628
|
|
|
93,991
|
|
|
10,637
|
|
|
11.3
|
%
|
|
76,251
|
|
|
62,021
|
|
|
14,230
|
|
|
22.9
|
%
|
Specialty
powders
|
|
9,809
|
|
|
15,095
|
|
|
(5,286)
|
|
|
(35.0)
|
%
|
|
10,279
|
|
|
13,699
|
|
|
(3,420)
|
|
|
(25.0)
|
%
|
Distribution
services
|
|
1,192
|
|
|
1,515
|
|
|
(323)
|
|
|
(21.3)
|
%
|
|
1,569
|
|
|
1,863
|
|
|
(294)
|
|
|
(15.8)
|
%
|
Total APAC
|
|
$
|
207,781
|
|
|
$
|
195,768
|
|
|
$
|
12,013
|
|
|
6.1
|
%
|
|
178,542
|
|
|
153,899
|
|
|
24,643
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
August 31,
|
Consolidated
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
45,660
|
|
|
$
|
47,302
|
|
|
$
|
(1,642)
|
|
|
(3.5)
|
%
|
|
19,440
|
|
|
16,023
|
|
|
3,417
|
|
|
21.3
|
%
|
Engineered
composites
|
|
57,133
|
|
|
—
|
|
|
57,133
|
|
|
N/A
|
|
46,082
|
|
|
—
|
|
|
46,082
|
|
|
N/A
|
Masterbatch
solutions
|
|
183,122
|
|
|
202,039
|
|
|
(18,917)
|
|
|
(9.4)
|
%
|
|
191,783
|
|
|
180,908
|
|
|
10,875
|
|
|
6.0
|
%
|
Engineered
plastics
|
|
237,155
|
|
|
194,330
|
|
|
42,825
|
|
|
22.0
|
%
|
|
201,674
|
|
|
125,059
|
|
|
76,615
|
|
|
61.3
|
%
|
Specialty
powders
|
|
71,506
|
|
|
86,578
|
|
|
(15,072)
|
|
|
(17.4)
|
%
|
|
86,154
|
|
|
102,121
|
|
|
(15,967)
|
|
|
(15.6)
|
%
|
Distribution
services
|
|
79,443
|
|
|
97,109
|
|
|
(17,666)
|
|
|
(18.2)
|
%
|
|
102,782
|
|
|
112,218
|
|
|
(9,436)
|
|
|
(8.4)
|
%
|
Total
Consolidated
|
|
$
|
674,019
|
|
|
$
|
627,358
|
|
|
$
|
46,661
|
|
|
7.4
|
%
|
|
647,915
|
|
|
536,329
|
|
|
111,586
|
|
|
20.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Year ended August
31,
|
Consolidated
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom performance
colors
|
|
$
|
191,453
|
|
|
$
|
188,221
|
|
|
$
|
3,232
|
|
|
1.7
|
%
|
|
75,657
|
|
|
63,726
|
|
|
11,931
|
|
|
18.7
|
%
|
Engineered
composites
|
|
57,133
|
|
|
—
|
|
|
57,133
|
|
|
N/A
|
|
46,082
|
|
|
—
|
|
|
46,082
|
|
|
N/A
|
Masterbatch
solutions
|
|
741,354
|
|
|
766,788
|
|
|
(25,434)
|
|
|
(3.3)
|
%
|
|
751,953
|
|
|
690,901
|
|
|
61,052
|
|
|
8.8
|
%
|
Engineered
plastics
|
|
787,258
|
|
|
753,728
|
|
|
33,530
|
|
|
4.4
|
%
|
|
580,351
|
|
|
478,397
|
|
|
101,954
|
|
|
21.3
|
%
|
Specialty
powders
|
|
294,228
|
|
|
350,510
|
|
|
(56,282)
|
|
|
(16.1)
|
%
|
|
364,120
|
|
|
399,956
|
|
|
(35,836)
|
|
|
(9.0)
|
%
|
Distribution
services
|
|
320,799
|
|
|
387,751
|
|
|
(66,952)
|
|
|
(17.3)
|
%
|
|
436,432
|
|
|
451,963
|
|
|
(15,531)
|
|
|
(3.4)
|
%
|
Total
Consolidated
|
|
$
|
2,392,225
|
|
|
$
|
2,446,998
|
|
|
$
|
(54,773)
|
|
|
(2.2)
|
%
|
|
2,254,595
|
|
|
2,084,943
|
|
|
169,652
|
|
|
8.1
|
%
|
A. SCHULMAN,
INC.
|
SUPPLEMENTAL
SEGMENT INFORMATION
|
(continued)
|
|
|
|
|
|
|
|
Three months ended
August 31,
|
|
Year ended August
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
Unaudited
(In thousands, except
for %'s)
|
|
|
|
|
|
|
|
|
|
Segment gross
profit
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
43,952
|
|
|
$
|
50,031
|
|
|
$
|
189,860
|
|
|
$
|
206,268
|
|
USCAN
|
|
34,072
|
|
|
22,367
|
|
|
100,550
|
|
|
73,278
|
|
LATAM
|
|
9,896
|
|
|
6,228
|
|
|
31,971
|
|
|
26,239
|
|
APAC
|
|
6,835
|
|
|
6,565
|
|
|
29,238
|
|
|
26,767
|
|
EC
|
|
14,536
|
|
|
—
|
|
|
14,536
|
|
|
—
|
|
Total segment gross
profit
|
|
109,291
|
|
|
85,191
|
|
|
366,155
|
|
|
332,552
|
|
Inventory
step-up
|
|
(2,741)
|
|
|
(269)
|
|
|
(3,082)
|
|
|
(1,468)
|
|
Accelerated
depreciation and restructuring related costs
|
|
(1,122)
|
|
|
(251)
|
|
|
(1,796)
|
|
|
(1,042)
|
|
Costs related to
acquisitions
|
|
(93)
|
|
|
(34)
|
|
|
(267)
|
|
|
(34)
|
|
Total gross
profit
|
|
$
|
105,335
|
|
|
$
|
84,637
|
|
|
$
|
361,010
|
|
|
$
|
330,008
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
17,281
|
|
|
$
|
19,153
|
|
|
$
|
78,313
|
|
|
$
|
80,690
|
|
USCAN
|
|
15,414
|
|
|
11,815
|
|
|
40,713
|
|
|
30,418
|
|
LATAM
|
|
5,530
|
|
|
2,102
|
|
|
13,061
|
|
|
8,388
|
|
APAC
|
|
3,498
|
|
|
2,656
|
|
|
14,401
|
|
|
12,527
|
|
EC
|
|
5,454
|
|
|
—
|
|
|
5,454
|
|
|
—
|
|
Total segment
operating income
|
|
47,177
|
|
|
35,726
|
|
|
151,942
|
|
|
132,023
|
|
Corporate
|
|
(6,246)
|
|
|
(8,019)
|
|
|
(31,238)
|
|
|
(32,170)
|
|
Costs related to
acquisitions
|
|
(9,236)
|
|
|
(2,644)
|
|
|
(17,208)
|
|
|
(6,021)
|
|
Restructuring and
related costs
|
|
(8,108)
|
|
|
(1,295)
|
|
|
(23,411)
|
|
|
(9,618)
|
|
Accelerated
depreciation
|
|
(81)
|
|
|
—
|
|
|
(408)
|
|
|
(107)
|
|
CEO transition
costs
|
|
—
|
|
|
—
|
|
|
(6,167)
|
|
|
—
|
|
Asset
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104)
|
|
Curtailment and
settlement gains (losses)
|
|
—
|
|
|
(214)
|
|
|
—
|
|
|
(214)
|
|
Inventory
step-up
|
|
(2,741)
|
|
|
(269)
|
|
|
(3,082)
|
|
|
(1,468)
|
|
Operating
income
|
|
20,765
|
|
|
23,285
|
|
|
70,428
|
|
|
82,321
|
|
Interest
expense
|
|
(15,325)
|
|
|
(2,391)
|
|
|
(22,613)
|
|
|
(8,503)
|
|
Bridge financing
fees
|
|
—
|
|
|
—
|
|
|
(18,750)
|
|
|
—
|
|
Foreign currency
transaction gains (losses)
|
|
(266)
|
|
|
(86)
|
|
|
(3,363)
|
|
|
(2,206)
|
|
Other income
(expense), net
|
|
538
|
|
|
242
|
|
|
1,438
|
|
|
720
|
|
Gain on early
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
1,290
|
|
|
—
|
|
Income from
continuing operations before taxes
|
|
$
|
5,712
|
|
|
$
|
21,050
|
|
|
$
|
28,430
|
|
|
$
|
72,332
|
|
|
|
|
|
|
|
|
|
|
Capacity
Utilization
|
|
|
|
|
|
|
|
|
EMEA
|
|
83
|
%
|
|
78
|
%
|
|
87
|
%
|
|
84
|
%
|
USCAN
|
|
71
|
%
|
|
65
|
%
|
|
66
|
%
|
|
64
|
%
|
LATAM
|
|
81
|
%
|
|
79
|
%
|
|
73
|
%
|
|
76
|
%
|
APAC
|
|
61
|
%
|
|
69
|
%
|
|
64
|
%
|
|
70
|
%
|
EC
|
|
57
|
%
|
|
—
|
%
|
|
57
|
%
|
|
—
|
%
|
Worldwide
|
|
73
|
%
|
|
73
|
%
|
|
74
|
%
|
|
75
|
%
|
A. SCHULMAN,
INC.
|
Sales by
Geographical Region
|
|
|
|
|
|
Three months ended
August 31, 2015
|
|
|
Unaudited (In
thousands, except for %'s)
|
|
|
|
|
|
Thermoplastics
|
|
Engineered
Composites
|
|
Total
|
Geographical
Region
|
|
Sales by
Region
|
|
% of
TP
|
|
Sales by
Region
|
|
% of
EC
|
|
Total
Sales
|
|
Total
%
|
United States /
Canada
|
|
$
|
195,272
|
|
|
31.7
|
%
|
|
$
|
41,831
|
|
|
73.2
|
%
|
|
$
|
237,103
|
|
|
35.2
|
%
|
Europe
|
|
326,763
|
|
|
53.0
|
%
|
|
5,892
|
|
|
10.3
|
%
|
|
332,655
|
|
|
49.4
|
%
|
Mexico / South
America
|
|
45,328
|
|
|
7.3
|
%
|
|
9,410
|
|
|
16.5
|
%
|
|
54,738
|
|
|
8.1
|
%
|
Asia
Pacific
|
|
49,523
|
|
|
8.0
|
%
|
|
—
|
|
|
—
|
%
|
|
49,523
|
|
|
7.3
|
%
|
Total
|
|
$
|
616,886
|
|
|
100.0
|
%
|
|
$
|
57,133
|
|
|
100.0
|
%
|
|
$
|
674,019
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
August 31, 2014
|
|
|
Unaudited (In
thousands, except for %'s)
|
|
|
|
|
|
Thermoplastics
|
|
Engineered
Composites
|
|
Total
|
Geographical
Region
|
|
Sales by
Region
|
|
% of
TP
|
|
Sales by
Region
|
|
% of
EC
|
|
Total
Sales
|
|
Total
%
|
United States /
Canada
|
|
$
|
138,773
|
|
|
22.1
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
138,773
|
|
|
22.1
|
%
|
Europe
|
|
388,593
|
|
|
62.0
|
%
|
|
—
|
|
|
—
|
%
|
|
388,593
|
|
|
62.0
|
%
|
Mexico / South
America
|
|
49,565
|
|
|
7.9
|
%
|
|
—
|
|
|
—
|
%
|
|
49,565
|
|
|
7.9
|
%
|
Asia
Pacific
|
|
50,427
|
|
|
8.0
|
%
|
|
—
|
|
|
—
|
%
|
|
50,427
|
|
|
8.0
|
%
|
Total
|
|
$
|
627,358
|
|
|
100.0
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
627,358
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/a-schulman-reports-fiscal-2015-fourth-quarter-and-full-year-results-300163399.html
SOURCE A. Schulman, Inc.