AKRON, Ohio, April 4, 2017 /PRNewswire/
-- A. Schulman, Inc. (Nasdaq: SHLM) today announced
earnings for the fiscal 2017 second quarter and first half of
fiscal 2017 ending February 28, 2017. On a GAAP basis, the
Company reported earnings per diluted share
of $0.11, compared with a loss of $0.01 in the prior year period. Adjusted
earnings per diluted share were $0.31, flat on a
year-over-year basis. For the first half of fiscal 2017, A.
Schulman reported earnings per diluted share of $0.14 on a GAAP basis, compared with $0.17 a year ago. Adjusted earnings per diluted
share during this period was $0.80,
compared with $0.82 in the first half
of fiscal 2016.
Consolidated net sales for the second quarter were $568.7
million, compared with $591.8 million in the second
quarter of fiscal 2016. Year-to-date, the Company reported
consolidated net sales of $1,168.7
million in fiscal 2017, compared with consolidated net sales
of $1,241 million in the first half
of fiscal 2016. Excluding the negative impact of foreign currency
translation in the second quarter and first half of fiscal 2017
of $12.6 million and $21.9
million, respectively, net sales declined 1.8% in the second
quarter and 4.1% in the first half compared with a year ago,
primarily due to lower volumes in the EMEA and USCAN segments.
"We've stated this is a reset year; however, I am highly
encouraged with the steady progress we are making through the hard
work of our teams. During the quarter, we saw strong results in
Engineered Composites and experienced continued growth in our
Asia-Pacific and Latin America segments related to improved
product mix and strength in Performance Materials. Our European
business saw a year-over-year improvement in operating income
despite the impact of foreign currency, in part, helped by our
recent business simplification efforts," said Joseph M. Gingo, chairman, president and chief
executive officer. "While our U.S. and Canada region remains challenged
by complex plant consolidation efforts, which had been
complicated by the Lucent matter, I am confident that we have solid
action plans in place to drive future profitability."
Gross profit on a GAAP basis in the second quarter of fiscal
2017 was $89.2 million, compared with
$89.8 million in the prior year
period. For the first half of fiscal 2017, gross profit on a GAAP
basis was $190.2 million, compared
with $194.8 million a year ago.
Segment gross margin was 15.9% in the second quarter and 16.4% in
the first half of fiscal 2017, which is relatively flat with the
comparable fiscal 2016 periods.
GAAP operating income in the second quarter was $21.3 million, compared with $16.0 million in the prior year period. Adjusted
operating income margin was 4.8% in the second quarter of fiscal
2017, compared with 4.9% in the second quarter of fiscal 2016. On a
year-to-date basis, the adjusted operating margin was 5.3%,
compared with 5.4% in the prior year.
A. Schulman reported fiscal second quarter net income
of $3.2 million, compared with a loss of $0.3 million in the year-ago period.
Year-to-date, reported net income was $4.2
million compared to $4.9
million in the prior six-month period. On an adjusted
basis, the net income comparison for the second quarter was
$9.3 million versus $9.2 million in the prior year period.
Year-to-date adjusted net income was $23.7
million, compared with $24.1
million in the prior year period. Fiscal 2017 second quarter
adjusted EBITDA was $46.7 million, compared with $49.7
million in the prior year period. Year-to-date, adjusted
EBITDA was $101.3 million, compared
with $108.1 million in the first six
months of fiscal 2016.
Balance Sheet/Cash Flow
Cash provided from operations for the first half of fiscal 2017
was $40.1 million, compared with $30.6
million in the prior period. Working capital days were 48 days
at the end of February 28, 2017, an improvement of 10 days
from the comparable period last year.
At quarter-end, net debt (total debt less cash and cash
equivalents and restricted cash) stands at $901 million, which equates to a net leverage
ratio of 4.06x. Since the purchase of Citadel in
mid-2015, the Company has paid down approximately $168
million of total debt.
Business Outlook
The Company's initial annual guidance included an assumed Euro rate
of $1.13. While the Company does not
generally adjust guidance around currency changes over the course
of the fiscal year, if the Euro remains at current levels of
approximately $1.06 for the remainder
of the fiscal year along with no changes in other world currencies,
the full fiscal year negative impact of foreign currency
translation would be approximately $0.15 per diluted share and would adversely
impact sales by approximately $90
million and EBITDA by approximately $8 million.
Excluding potential 2017 currency translation as noted above,
the Company is maintaining its previously stated fiscal 2017
operating targets of $2.5 billion to $2.6
billion in sales, adjusted EBITDA of $225
million to $230 million, and a return on invested capital
of 11 percent to 12.5 percent. The outlook for adjusted earnings
per diluted share remains in the range
of $2.08 to $2.18 on an operating basis.
Gingo stated, "As a result of potential foreign currency
headwind, we are intensely focused on continuing to execute our
strategy with a sense of urgency. We must deliver tangible benefits
from our strengthened global sales organization and aggressively
commercialize value-added products in our expanding innovation
pipeline."
Gingo noted that the Company is focused on increasing sales in
high-demand, high-margin specialized growth niches worldwide. "I
believe A. Schulman's expertise, technology and service sets it
apart from our competitors. These distinctions will become even
more evident as we progress into fiscal 2018."
Please refer to the reconciliation of GAAP and Non-GAAP
financial measures for the types of items excluded from the
Company's business outlook.
Conference Call on the Web
A live Internet broadcast of A. Schulman's conference
call regarding fiscal 2017 second quarter and first half results
can be accessed at 10:00 a.m. Eastern Time on
April 5, 2017, 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 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 4,800 people and has 54
manufacturing facilities globally. A. Schulman reported
net sales of approximately $2.5 billion for the fiscal
year ended August 31, 2016. 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.
The Company uses 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 to assess performance and allocate resources because the
Company believes that these measures are useful to investors and
management in understanding current profitability levels that may
serve as a basis for evaluating future performance and facilitating
comparability of results. In addition, segment operating income
before certain items and net income excluding certain items are
important to management as all are a component of the Company's
annual and long-term employee incentive plans. 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 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 and the integration thereof, 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;
- our current debt position could adversely affect our financial
health and prevent us from fulfilling our financial obligations;
and
- failure of counterparties to perform under the terms and
conditions of contractual arrangements, including suppliers,
customers, buyers and sellers of a business and other third parties
with which the Company
contracts.
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, 2016. 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
(Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
February 28,
2017
|
|
February 29,
2016
|
|
February 28,
2017
|
|
February 29,
2016
|
|
(In thousands, except
per share data)
|
Net
sales
|
$
|
568,678
|
|
|
$
|
591,761
|
|
|
$
|
1,168,678
|
|
|
$
|
1,240,980
|
|
Cost of
sales
|
479,492
|
|
|
501,937
|
|
|
978,477
|
|
|
1,046,227
|
|
Selling, general and
administrative expenses
|
65,967
|
|
|
71,604
|
|
|
138,342
|
|
|
148,841
|
|
Restructuring
expense
|
1,878
|
|
|
2,214
|
|
|
11,422
|
|
|
3,760
|
|
Operating income
(loss)
|
21,341
|
|
|
16,006
|
|
|
40,437
|
|
|
42,152
|
|
Interest
expense
|
13,107
|
|
|
13,790
|
|
|
26,271
|
|
|
27,408
|
|
Foreign currency
transaction (gains) losses
|
1,081
|
|
|
950
|
|
|
1,643
|
|
|
1,679
|
|
Other (income)
expense, net
|
674
|
|
|
(269)
|
|
|
(459)
|
|
|
(218)
|
|
Income (loss)
before taxes
|
6,479
|
|
|
1,535
|
|
|
12,982
|
|
|
13,283
|
|
Provision (benefit)
for U.S. and foreign income taxes
|
1,143
|
|
|
(487)
|
|
|
4,462
|
|
|
3,764
|
|
Net income
(loss)
|
5,336
|
|
|
2,022
|
|
|
8,520
|
|
|
9,519
|
|
Noncontrolling
interests
|
(306)
|
|
|
(430)
|
|
|
(547)
|
|
|
(834)
|
|
Net income (loss)
attributable to A. Schulman, Inc.
|
5,030
|
|
|
1,592
|
|
|
7,973
|
|
|
8,685
|
|
Convertible special
stock dividends
|
1,875
|
|
|
1,875
|
|
|
3,750
|
|
|
3,750
|
|
Net income (loss)
available to A. Schulman, Inc. common stockholders
|
$
|
3,155
|
|
|
$
|
(283)
|
|
|
$
|
4,223
|
|
|
$
|
4,935
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,394
|
|
|
29,292
|
|
|
29,378
|
|
|
29,257
|
|
Diluted
|
29,503
|
|
|
29,292
|
|
|
29,470
|
|
|
29,455
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share available to A. Schulman, Inc. common
stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
Diluted
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
$
|
0.205
|
|
|
$
|
0.205
|
|
|
$
|
0.410
|
|
|
$
|
0.410
|
|
Cash dividends per
share of convertible special stock
|
$
|
15.00
|
|
|
$
|
15.00
|
|
|
$
|
30.00
|
|
|
$
|
30.00
|
|
A. SCHULMAN,
INC.
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
February 28,
2017
|
|
August 31,
2016
|
|
(In
thousands)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
47,861
|
|
|
$
|
35,260
|
|
Restricted
cash
|
1,623
|
|
|
8,143
|
|
Accounts receivable,
less allowance for doubtful accounts of $11,411 at February 28,
2017 and $11,341 at August 31, 2016
|
380,791
|
|
|
376,786
|
|
Inventories
|
279,814
|
|
|
263,617
|
|
Prepaid expenses and
other current assets
|
40,837
|
|
|
40,263
|
|
Assets held for
sale
|
9,669
|
|
|
—
|
|
Total current
assets
|
760,595
|
|
|
724,069
|
|
Property, plant
and equipment, at cost:
|
|
|
|
Land and
improvements
|
29,798
|
|
|
32,957
|
|
Buildings and
leasehold improvements
|
170,485
|
|
|
184,291
|
|
Machinery and
equipment
|
434,993
|
|
|
447,932
|
|
Furniture and
fixtures
|
32,720
|
|
|
34,457
|
|
Construction in
progress
|
25,000
|
|
|
20,431
|
|
Gross property,
plant and equipment
|
692,996
|
|
|
720,068
|
|
Accumulated
depreciation
|
401,288
|
|
|
405,246
|
|
Net property,
plant and equipment
|
291,708
|
|
|
314,822
|
|
Deferred charges and
other noncurrent assets
|
85,364
|
|
|
88,161
|
|
Goodwill
|
257,507
|
|
|
257,773
|
|
Intangible assets,
net
|
344,622
|
|
|
362,614
|
|
Total
assets
|
$
|
1,739,796
|
|
|
$
|
1,747,439
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
303,160
|
|
|
$
|
280,060
|
|
U.S. and foreign
income taxes payable
|
5,783
|
|
|
8,985
|
|
Accrued payroll,
taxes and related benefits
|
41,039
|
|
|
47,569
|
|
Other accrued
liabilities
|
66,844
|
|
|
67,704
|
|
Short-term
debt
|
28,857
|
|
|
25,447
|
|
Total current
liabilities
|
445,683
|
|
|
429,765
|
|
Long-term
debt
|
921,312
|
|
|
919,349
|
|
Pension
plans
|
138,574
|
|
|
145,108
|
|
Deferred income
taxes
|
56,113
|
|
|
59,013
|
|
Other long-term
liabilities
|
24,850
|
|
|
25,844
|
|
Total
liabilities
|
1,586,532
|
|
|
1,579,079
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Convertible special
stock, no par value
|
120,289
|
|
|
120,289
|
|
Common stock, $1 par
value, authorized - 75,000 shares, issued - 48,553 shares at
February 28, 2017 and 48,510 shares at August 31, 2016
|
48,553
|
|
|
48,510
|
|
Additional paid-in
capital
|
277,165
|
|
|
275,115
|
|
Accumulated other
comprehensive income (loss)
|
(130,640)
|
|
|
(120,721)
|
|
Retained
earnings
|
211,205
|
|
|
219,039
|
|
Treasury stock, at
cost, 19,066 shares at February 28, 2017 and 19,069 shares at
August 31, 2016
|
(382,903)
|
|
|
(382,963)
|
|
Total A. Schulman,
Inc.'s stockholders' equity
|
143,669
|
|
|
159,269
|
|
Noncontrolling
interests
|
9,595
|
|
|
9,091
|
|
Total
equity
|
153,264
|
|
|
168,360
|
|
Total liabilities
and equity
|
$
|
1,739,796
|
|
|
$
|
1,747,439
|
|
A. SCHULMAN,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six months
ended
|
|
February 28,
2017
|
|
February 29,
2016
|
|
(In
thousands)
|
Operating
activities:
|
|
|
|
Net income
|
$
|
8,520
|
|
|
$
|
9,519
|
|
Adjustments to
reconcile net income to net cash provided from (used in) operating
activities:
|
|
|
|
Depreciation
|
22,215
|
|
|
25,053
|
|
Amortization
|
17,644
|
|
|
20,032
|
|
Deferred tax
provision (benefit)
|
(4,493)
|
|
|
(2,360)
|
|
Pension,
postretirement benefits and other compensation
|
3,361
|
|
|
2,621
|
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(15,866)
|
|
|
10,822
|
|
Inventories
|
(24,670)
|
|
|
4,772
|
|
Accounts
payable
|
40,363
|
|
|
(30,846)
|
|
Income
taxes
|
(4,639)
|
|
|
(1,491)
|
|
Accrued payroll and
other accrued liabilities
|
(4,311)
|
|
|
(5,773)
|
|
Other assets and
long-term liabilities
|
2,025
|
|
|
(1,712)
|
|
Net cash provided
from (used in) operating activities
|
40,149
|
|
|
30,637
|
|
Investing
activities
|
|
|
|
Expenditures for
property, plant and equipment
|
(24,505)
|
|
|
(20,365)
|
|
Proceeds from the
sale of assets
|
478
|
|
|
843
|
|
Other investing
activities
|
125
|
|
|
—
|
|
Net cash provided
from (used in) investing activities
|
(23,902)
|
|
|
(19,522)
|
|
Financing
activities:
|
|
|
|
Cash dividends paid
to special stockholders
|
(3,750)
|
|
|
(3,750)
|
|
Cash dividends paid
to common stockholders
|
(12,057)
|
|
|
(12,043)
|
|
Increase (decrease)
in short-term debt
|
5,153
|
|
|
4,275
|
|
Borrowings on
revolving credit facility
|
238,543
|
|
|
45,655
|
|
Repayments of
revolving credit facility
|
(173,895)
|
|
|
(29,900)
|
|
Repayments of other
long-term debt and capital leases
|
(63,139)
|
|
|
(61,450)
|
|
Issuances of stock,
common and treasury
|
93
|
|
|
148
|
|
Redemptions of common
stock
|
(620)
|
|
|
(900)
|
|
Net cash provided
from (used in) financing activities
|
(9,672)
|
|
|
(57,965)
|
|
Effect of exchange
rate changes on cash
|
(494)
|
|
|
(3,144)
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
6,081
|
|
|
(49,994)
|
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
43,403
|
|
|
96,872
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
49,484
|
|
|
$
|
46,878
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
47,861
|
|
|
$
|
46,878
|
|
Restricted
cash
|
1,623
|
|
|
—
|
|
Total cash, cash
equivalents, and restricted cash
|
$
|
49,484
|
|
|
$
|
46,878
|
|
A. SCHULMAN,
INC.
Reconciliation of
GAAP and Non-GAAP Financial Measures
Unaudited
|
Three months ended
February 28, 2017
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non Operating
(Income) Expense
|
|
Income Tax Expense
(Benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except
for %'s and per share data)
|
As
reported
|
|
$
|
479,492
|
|
|
15.7
|
%
|
|
$
|
65,967
|
|
|
$
|
1,878
|
|
|
$
|
21,341
|
|
|
$
|
14,862
|
|
|
$
|
1,143
|
|
|
$
|
3,155
|
|
|
$
|
0.11
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
(8)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,623)
|
|
|
390
|
|
|
1,233
|
|
|
0.04
|
|
Accelerated
depreciation (1)
|
|
(467)
|
|
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
112
|
|
|
355
|
|
|
0.01
|
|
Restructuring and
related costs (3)
|
|
(871)
|
|
|
|
|
(2,221)
|
|
|
(1,878)
|
|
|
4,970
|
|
|
—
|
|
|
1,193
|
|
|
3,777
|
|
|
0.12
|
|
Lucent costs
(4)
|
|
—
|
|
|
|
|
(596)
|
|
|
—
|
|
|
596
|
|
|
—
|
|
|
143
|
|
|
453
|
|
|
0.02
|
|
CEO transition costs
(5)
|
|
—
|
|
|
|
|
(6)
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
—
|
|
Accelerated
amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
5
|
|
|
16
|
|
|
—
|
|
Tax (benefits)
charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(267)
|
|
|
267
|
|
|
0.01
|
|
Total certain
items
|
|
(1,338)
|
|
|
0.2
|
%
|
|
(2,823)
|
|
|
(1,878)
|
|
|
6,039
|
|
|
(1,644)
|
|
|
1,578
|
|
|
6,105
|
|
|
0.20
|
|
As
Adjusted
|
|
$
|
478,154
|
|
|
15.9
|
%
|
|
$
|
63,144
|
|
|
$
|
—
|
|
|
$
|
27,380
|
|
|
$
|
13,218
|
|
|
$
|
2,721
|
|
|
$
|
9,260
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
11.1
|
%
|
|
|
|
4.8
|
%
|
|
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
February 29, 2016
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non Operating
(Income) Expense
|
|
Income Tax Expense
(Benefit)
|
|
Net Income
Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except
for %'s and per share data)
|
As
reported
|
|
$
|
501,937
|
|
|
15.2
|
%
|
|
$
|
71,604
|
|
|
$
|
2,214
|
|
|
$
|
16,006
|
|
|
$
|
14,471
|
|
|
$
|
(487)
|
|
|
$
|
(283)
|
|
|
$
|
(0.01)
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
depreciation (1)
|
|
(2,049)
|
|
|
|
|
(8)
|
|
|
—
|
|
|
2,057
|
|
|
—
|
|
|
479
|
|
|
1,578
|
|
|
0.05
|
|
Costs related to
acquisitions and integrations (2)
|
|
(1,970)
|
|
|
|
|
(2,291)
|
|
|
—
|
|
|
4,261
|
|
|
—
|
|
|
1,022
|
|
|
3,239
|
|
|
0.11
|
|
Restructuring and
related costs (3)
|
|
(455)
|
|
|
|
|
(3,100)
|
|
|
(2,214)
|
|
|
5,769
|
|
|
(84)
|
|
|
1,381
|
|
|
4,472
|
|
|
0.16
|
|
Lucent costs
(4)
|
|
452
|
|
|
|
|
(1,063)
|
|
|
—
|
|
|
611
|
|
|
—
|
|
|
51
|
|
|
560
|
|
|
0.02
|
|
Accelerated
amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(164)
|
|
|
38
|
|
|
126
|
|
|
—
|
|
Tax (benefits)
charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
498
|
|
|
(498)
|
|
|
(0.02)
|
|
Total certain
items
|
|
(4,022)
|
|
|
0.7
|
%
|
|
(6,462)
|
|
|
(2,214)
|
|
|
12,698
|
|
|
(248)
|
|
|
3,469
|
|
|
9,477
|
|
|
0.32
|
|
As
Adjusted
|
|
$
|
497,915
|
|
|
15.9
|
%
|
|
$
|
65,142
|
|
|
$
|
—
|
|
|
$
|
28,704
|
|
|
$
|
14,223
|
|
|
$
|
2,982
|
|
|
$
|
9,194
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
11.0
|
%
|
|
|
|
4.9
|
%
|
|
|
|
—
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.6
|
%
|
|
|
|
|
Six months ended
February 28, 2017
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non
Operating
(Income)
Expense
|
|
Income
Tax
Expense
(Benefit)
|
|
Net Income
Available to ASI
Common
Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except
for %'s and per share data)
|
As
reported
|
|
$
|
978,477
|
|
|
16.3
|
%
|
|
$
|
138,342
|
|
|
$
|
11,422
|
|
|
$
|
40,437
|
|
|
$
|
27,455
|
|
|
$
|
4,462
|
|
|
$
|
4,223
|
|
|
$
|
0.14
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
(8)
|
|
—
|
|
|
|
|
(678)
|
|
|
—
|
|
|
678
|
|
|
(1,623)
|
|
|
552
|
|
|
1,749
|
|
|
0.06
|
|
Accelerated
depreciation (1)
|
|
(822)
|
|
|
|
|
(1)
|
|
|
—
|
|
|
823
|
|
|
—
|
|
|
197
|
|
|
626
|
|
|
0.02
|
|
Costs related to
acquisitions and integrations (2)
|
|
(57)
|
|
|
|
|
(548)
|
|
|
—
|
|
|
605
|
|
|
—
|
|
|
145
|
|
|
460
|
|
|
0.02
|
|
Restructuring and
related costs (3)
|
|
(1,043)
|
|
|
|
|
(5,778)
|
|
|
(11,422)
|
|
|
18,243
|
|
|
—
|
|
|
4,378
|
|
|
13,865
|
|
|
0.46
|
|
Lucent costs
(4)
|
|
(86)
|
|
|
|
|
(1,319)
|
|
|
—
|
|
|
1,405
|
|
|
—
|
|
|
337
|
|
|
1,068
|
|
|
0.04
|
|
CEO transition costs
(5)
|
|
—
|
|
|
|
|
(196)
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
47
|
|
|
149
|
|
|
0.01
|
|
Accelerated
amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(227)
|
|
|
54
|
|
|
173
|
|
|
0.01
|
|
Tax (benefits)
charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,347)
|
|
|
1,347
|
|
|
0.05
|
|
Total certain
items
|
|
(2,008)
|
|
|
0.1
|
%
|
|
(8,520)
|
|
|
(11,422)
|
|
|
21,950
|
|
|
(1,850)
|
|
|
4,363
|
|
|
19,437
|
|
|
0.67
|
|
As
Adjusted
|
|
$
|
976,469
|
|
|
16.4
|
%
|
|
$
|
129,822
|
|
|
$
|
—
|
|
|
$
|
62,387
|
|
|
$
|
25,605
|
|
|
$
|
8,825
|
|
|
$
|
23,660
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
11.1
|
%
|
|
|
|
5.3
|
%
|
|
|
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
February 29, 2016
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non
Operating
(Income)
Expense
|
|
Income
Tax
Expense
(Benefit)
|
|
Net Income
Available to ASI
Common
Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except
for %'s and per share data)
|
As
reported
|
|
$
|
1,046,227
|
|
|
15.7
|
%
|
|
$
|
148,841
|
|
|
$
|
3,760
|
|
|
$
|
42,152
|
|
|
$
|
28,869
|
|
|
$
|
3,764
|
|
|
$
|
4,935
|
|
|
$
|
0.17
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
depreciation (1)
|
|
(3,496)
|
|
|
|
|
(14)
|
|
|
—
|
|
|
3,510
|
|
|
—
|
|
|
885
|
|
|
2,625
|
|
|
0.09
|
|
Costs related to
acquisitions and integrations (2)
|
|
(2,099)
|
|
|
|
|
(4,028)
|
|
|
—
|
|
|
6,127
|
|
|
—
|
|
|
1,544
|
|
|
4,583
|
|
|
0.15
|
|
Restructuring and
related costs (3)
|
|
(885)
|
|
|
|
|
(5,794)
|
|
|
(3,760)
|
|
|
10,439
|
|
|
(361)
|
|
|
2,772
|
|
|
8,028
|
|
|
0.27
|
|
Lucent costs
(4)
|
|
(1,378)
|
|
|
|
|
(2,939)
|
|
|
—
|
|
|
4,317
|
|
|
—
|
|
|
1,088
|
|
|
3,229
|
|
|
0.11
|
|
Accelerated
amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(274)
|
|
|
69
|
|
|
205
|
|
|
0.01
|
|
Tax (benefits)
charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(467)
|
|
|
467
|
|
|
0.02
|
|
Total certain
items
|
|
(7,858)
|
|
|
0.6
|
%
|
|
(12,775)
|
|
|
(3,760)
|
|
|
24,393
|
|
|
(635)
|
|
|
5,891
|
|
|
19,137
|
|
|
0.65
|
|
As
Adjusted
|
|
$
|
1,038,369
|
|
|
16.3
|
%
|
|
$
|
136,066
|
|
|
$
|
—
|
|
|
$
|
66,545
|
|
|
$
|
28,234
|
|
|
$
|
9,655
|
|
|
$
|
24,072
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
11.0
|
%
|
|
|
|
5.4
|
%
|
|
|
|
—
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.2
|
%
|
|
|
|
|
1 - Accelerated depreciation is related to restructuring plans
in the Company's USCAN and EMEA segments.
2 - Costs related to acquisitions and integrations 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. Refer to Note
12 in the Company's Quarterly Report on Form 10-Q for further
discussion.
4 - Lucent costs primarily represent legal and investigation
costs related to resolving the Lucent matter, product manufacturing
costs for reworking existing Lucent inventory, obsolete Lucent
inventory reserve costs, and dedicated internal personnel costs
that would have otherwise been focused on normal operations.
5 - CEO transition costs represent charges for deferred
compensation granted to Bernard
Rzepka.
6 - Write off of debt issuance costs are related to prepayments
of $56.0 million of Term Loan B.
Refer to Note 3 in the Company's Quarterly Report on Form 10-Q for
further discussion.
7 - Tax (benefits) charges represent the Company's quarterly
non-GAAP tax based on the overall estimated annual non-GAAP
effective tax rates.
8 - Asset impairment relates to the discontinuation of
information technology assets in the USCAN segment and future cash
settlement of a commitment to a local government.
A. SCHULMAN,
INC.
ADJUSTED EBITDA
RECONCILIATION
(Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
February 28,
2017
|
|
February 29,
2016
|
|
February 28,
2017
|
|
February 29,
2016
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Net income
available to A. Schulman, Inc. common stockholders
|
$
|
3,155
|
|
|
$
|
(283)
|
|
|
$
|
4,223
|
|
|
$
|
4,935
|
|
Interest expense
|
13,107
|
|
|
13,790
|
|
|
26,271
|
|
|
27,408
|
|
Provision for U.S. and
foreign income taxes
|
1,143
|
|
|
(487)
|
|
|
4,462
|
|
|
3,764
|
|
Depreciation and
amortization
|
19,870
|
|
|
23,033
|
|
|
39,859
|
|
|
45,085
|
|
Noncontrolling
interests
|
306
|
|
|
430
|
|
|
547
|
|
|
834
|
|
Convertible special stock
dividends
|
1,875
|
|
|
1,875
|
|
|
3,750
|
|
|
3,750
|
|
Other (1)
|
1,755
|
|
|
681
|
|
|
1,184
|
|
|
1,461
|
|
EBITDA, as
calculated
|
$
|
41,211
|
|
|
$
|
39,039
|
|
|
$
|
80,296
|
|
|
$
|
87,237
|
|
Non-GAAP Adjustments
(2)
|
5,467
|
|
|
10,650
|
|
|
21,023
|
|
|
20,886
|
|
EBITDA, as
adjusted
|
$
|
46,678
|
|
|
$
|
49,689
|
|
|
$
|
101,319
|
|
|
$
|
108,123
|
|
|
|
|
|
|
|
|
|
(1) - Other includes Foreign currency transaction (gains) losses
and Other (income) expense, net.
(2) - For details on Non-GAAP adjustments, refer to
"Reconciliation of GAAP and Non-GAAP Financial Measures", items (2)
- (8). Amounts are included in Operating Income. Accelerated
depreciation on the "Reconciliation of GAAP and Non-GAAP Financial
Measures" has been excluded as it is already included in
Depreciation and amortization above.
A. SCHULMAN,
INC.
SUPPLEMENTAL
SEGMENT INFORMATION
(Unaudited)
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
|
Three months
ended
|
|
Six months
ended
|
EMEA
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Concentrates
and Services
|
|
$
|
149,085
|
|
|
$
|
154,782
|
|
|
$
|
(5,697)
|
|
|
(3.7)
|
%
|
|
$
|
307,118
|
|
|
$
|
328,911
|
|
|
$
|
(21,793)
|
|
|
(6.6)
|
%
|
Performance
Materials
|
|
127,817
|
|
|
135,548
|
|
|
(7,731)
|
|
|
(5.7)
|
%
|
|
265,856
|
|
|
289,515
|
|
|
(23,659)
|
|
|
(8.2)
|
%
|
Total EMEA
|
|
$
|
276,902
|
|
|
$
|
290,330
|
|
|
$
|
(13,428)
|
|
|
(4.6)
|
%
|
|
$
|
572,974
|
|
|
$
|
618,426
|
|
|
$
|
(45,452)
|
|
|
(7.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
|
Three months
ended
|
|
Six months
ended
|
USCAN
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Concentrates
and Services
|
|
$
|
59,956
|
|
|
$
|
63,160
|
|
|
$
|
(3,204)
|
|
|
(5.1)
|
%
|
|
$
|
122,882
|
|
|
$
|
127,313
|
|
|
$
|
(4,431)
|
|
|
(3.5)
|
%
|
Performance
Materials
|
|
91,962
|
|
|
107,657
|
|
|
(15,695)
|
|
|
(14.6)
|
%
|
|
185,454
|
|
|
221,786
|
|
|
(36,332)
|
|
|
(16.4)
|
%
|
Total
USCAN
|
|
$
|
151,918
|
|
|
$
|
170,817
|
|
|
$
|
(18,899)
|
|
|
(11.1)
|
%
|
|
$
|
308,336
|
|
|
$
|
349,099
|
|
|
$
|
(40,763)
|
|
|
(11.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
|
Three months
ended
|
|
Six months
ended
|
LATAM
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Concentrates
and Services
|
|
$
|
27,374
|
|
|
$
|
28,399
|
|
|
$
|
(1,025)
|
|
|
(3.6)
|
%
|
|
$
|
57,343
|
|
|
$
|
62,412
|
|
|
$
|
(5,069)
|
|
|
(8.1)
|
%
|
Performance
Materials
|
|
12,288
|
|
|
9,759
|
|
|
2,529
|
|
|
25.9
|
%
|
|
24,535
|
|
|
20,949
|
|
|
3,586
|
|
|
17.1
|
%
|
Total
LATAM
|
|
$
|
39,662
|
|
|
$
|
38,158
|
|
|
$
|
1,504
|
|
|
3.9
|
%
|
|
$
|
81,878
|
|
|
$
|
83,361
|
|
|
$
|
(1,483)
|
|
|
(1.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
|
Three months
ended
|
|
Six months
ended
|
APAC
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Concentrates
and Services
|
|
$
|
23,171
|
|
|
$
|
22,118
|
|
|
$
|
1,053
|
|
|
4.8
|
%
|
|
$
|
48,162
|
|
|
$
|
45,660
|
|
|
$
|
2,502
|
|
|
5.5
|
%
|
Performance
Materials
|
|
25,743
|
|
|
22,945
|
|
|
2,798
|
|
|
12.2
|
%
|
|
51,489
|
|
|
45,095
|
|
|
6,394
|
|
|
14.2
|
%
|
Total APAC
|
|
$
|
48,914
|
|
|
$
|
45,063
|
|
|
$
|
3,851
|
|
|
8.5
|
%
|
|
$
|
99,651
|
|
|
$
|
90,755
|
|
|
$
|
8,896
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Net
Sales
|
|
|
Three months
ended
|
|
Six months
ended
|
Consolidated
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Engineered
Composites
|
|
$
|
51,282
|
|
|
$
|
47,393
|
|
|
$
|
3,889
|
|
|
8.2
|
%
|
|
$
|
105,839
|
|
|
$
|
99,339
|
|
|
$
|
6,500
|
|
|
6.5
|
%
|
Custom Concentrates
and Services
|
|
259,586
|
|
|
268,459
|
|
|
(8,873)
|
|
|
(3.3)
|
%
|
|
535,505
|
|
|
564,296
|
|
|
(28,791)
|
|
|
(5.1)
|
%
|
Performance
Materials
|
|
257,810
|
|
|
275,909
|
|
|
(18,099)
|
|
|
(6.6)
|
%
|
|
527,334
|
|
|
577,345
|
|
|
(50,011)
|
|
|
(8.7)
|
%
|
Total
Consolidated
|
|
$
|
568,678
|
|
|
$
|
591,761
|
|
|
$
|
(23,083)
|
|
|
(3.9)
|
%
|
|
$
|
1,168,678
|
|
|
$
|
1,240,980
|
|
|
$
|
(72,302)
|
|
|
(5.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Gross
Profit
|
|
Segment Gross
Profit
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
39,130
|
|
|
$
|
38,953
|
|
|
$
|
177
|
|
|
0.5
|
%
|
|
$
|
83,788
|
|
|
$
|
86,637
|
|
|
$
|
(2,849)
|
|
|
(3.3)
|
%
|
USCAN
|
|
20,060
|
|
|
27,241
|
|
|
(7,181)
|
|
|
(26.4)
|
%
|
|
44,576
|
|
|
57,535
|
|
|
(12,959)
|
|
|
(22.5)
|
%
|
LATAM
|
|
9,595
|
|
|
8,466
|
|
|
1,129
|
|
|
13.3
|
%
|
|
19,012
|
|
|
18,171
|
|
|
841
|
|
|
4.6
|
%
|
APAC
|
|
8,908
|
|
|
8,199
|
|
|
709
|
|
|
8.6
|
%
|
|
18,034
|
|
|
16,073
|
|
|
1,961
|
|
|
12.2
|
%
|
EC
|
|
12,831
|
|
|
10,987
|
|
|
1,844
|
|
|
16.8
|
%
|
|
26,799
|
|
|
24,195
|
|
|
2,604
|
|
|
10.8
|
%
|
Total segment gross
profit
|
|
$
|
90,524
|
|
|
$
|
93,846
|
|
|
$
|
(3,322)
|
|
|
(3.5)
|
%
|
|
$
|
192,209
|
|
|
$
|
202,611
|
|
|
$
|
(10,402)
|
|
|
(5.1)
|
%
|
Accelerated
depreciation and restructuring related costs
|
|
(1,338)
|
|
|
(2,504)
|
|
|
1,166
|
|
|
(46.6)
|
%
|
|
(1,865)
|
|
|
(4,381)
|
|
|
2,516
|
|
|
(57.4)
|
%
|
Costs related to
acquisitions and integrations
|
|
—
|
|
|
(1,970)
|
|
|
1,970
|
|
|
—
|
%
|
|
(57)
|
|
|
(2,099)
|
|
|
2,042
|
|
|
(97.3)
|
%
|
Lucent costs
(1)
|
|
—
|
|
|
452
|
|
|
(452)
|
|
|
—
|
%
|
|
(86)
|
|
|
(1,378)
|
|
|
1,292
|
|
|
(93.8)
|
%
|
Total gross
profit
|
|
$
|
89,186
|
|
|
$
|
89,824
|
|
|
$
|
(638)
|
|
|
(0.7)
|
%
|
|
$
|
190,201
|
|
|
$
|
194,753
|
|
|
$
|
(4,552)
|
|
|
(2.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Refer to Note 13, Commitments and Contingencies,
for additional discussion on this matter. Lucent costs in cost of
sales include additional product and manufacturing operational
costs for reworking inventory. Lucent costs in selling,
general and administrative expenses include legal and investigative
costs. In addition, in the three and six months ended February 29, 2016, Lucent costs in SG&A also
include dedicated internal personnel costs that would have
otherwise been focused on normal operations.
(2)Restructuring related costs for the three and six months
ended February 28, 2017 of
$3.1 million and $6.8 million, respectively, and for the three and
six months ended February 29, 2016 of
$3.6 million and $6.7 million, respectively, primarily included in
selling, general and administrative expenses in the Company's
statements of operations, are costs associated with professional
fees for outside strategic consultants regarding actions to improve
the profitability of the organization and efficiency of its
operations, and costs associated with reorganizations of the legal
entity structure of the Company. Restructuring expenses
included in restructuring expense in the Company's statement of
operations include costs permitted under ASC 420, Exit or Disposal
Obligations, such as severance costs, outplacement services and
contract termination costs.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/a-schulman-reports-fiscal-2017-second-quarter-first-half-results-300434573.html
SOURCE A. Schulman, Inc.