- Earnings per share of $0.25 versus loss of $3.07 in prior year -
Excluding special items and tax adjustments in both periods,
earnings per share improve to $0.14 from $0.08 in prior year -
Combined operating income from specialty businesses grows nearly
tenfold to $18.4 million in the fourth quarter of 2009 from $1.9
million in the fourth quarter of 2008 - Completed acquisition of
specialty healthcare company New England Urethane, Inc. CLEVELAND,
Feb. 4 /PRNewswire-FirstCall/ -- PolyOne Corporation (NYSE: POL)
today reported net income of $24.0 million, or $0.25 per diluted
share on revenues of $552.5 million in the fourth quarter of 2009,
compared with a net loss of $282.6 million or $3.07 per diluted
share on revenues of $541.8 million in the fourth quarter of 2008.
On a comparable basis, earnings per share before special items and
one-time tax items increased 75 percent over prior year levels to
$0.14 per diluted share compared to $0.08 per diluted share
recorded in the fourth quarter of 2008. "Specialty operating income
grew nearly tenfold from the fourth quarter of 2008 to the fourth
quarter of 2009 driven primarily by a thirty percent increase in
our International segment sales," said Stephen D. Newlin, chairman,
president and chief executive officer. "I am also pleased with our
sequential top-line growth from the third quarter of 2009, as the
addition of new business gains in our Distribution business allowed
us to overcome the seasonal decline in revenues traditionally
experienced during the fourth quarter." Newlin continued, "During
the first half of 2009 we focused on reducing costs and working
capital and we achieved substantial gross margin expansion and
improved cash flow as a result. With demonstrated sustainable
earnings improvement, we were able to increase our focus on winning
profitable new business and growing the top line during the second
half of the year. The previously announced agreement providing for
our distribution of DuPont products during the third quarter of
2009 is a perfect illustration of how exemplary customer service
combined with best in class on-time delivery performance makes us
the supplier of choice in the polymer industry." "The fourth
quarter of 2008 included a $16.5 million benefit from LIFO versus a
$3.2 million benefit during the fourth quarter of 2009," said
Robert M. Patterson, senior vice president and chief financial
officer. "Excluding the impact of LIFO in both periods, gross
margin expanded five hundred basis points driven principally by
improved mix, lower raw material costs and restructuring savings."
Included in the results for the fourth quarter of 2009 are pre-tax
special items netting to $1.9 million ($0.8 million after-tax)
primarily related to expenses associated with environmental
remediation and previously announced restructuring actions, net of
asset sale gains. The Company also recorded $12 million of
favorable tax adjustments primarily related to a reduction in its
tax valuation allowance. During the fourth quarter of 2008, the
Company recorded charges of $170 million for goodwill impairment,
$105 million related to income tax valuation allowances, and $15
million related to special items. The chart below provides a
comparison of fourth quarter 2009 results with the fourth quarter
of 2008, showing the impact of special items and the
above-mentioned tax matters: Q4 2009 EPS Q4 2008 EPS Net income
$24.0 $0.25 $(282.6) $(3.07) Special items, after tax 0.8 0.01
185.0 2.01 Tax adjustments (12.0) (0.12) 104.5 1.14 ----- -----
----- ---- $12.8 $0.14 $6.9 $0.08 During the fourth quarter of
2009, cash declined $18 million as the Company made an $11 million
advance contribution to its pension funds, acquired the specialty
healthcare company New England Urethane, Inc. for $11.5 million,
and retired medium term notes of $20 million. At year-end, cash and
liquidity were $223 million and $336 million, respectively, which
are both substantially higher than the $44 million of cash and $166
million of liquidity reported at the end of 2008. Strategy and
Outlook Update Commenting on the Company's near term outlook,
Patterson said, "We are cautiously optimistic about the economy and
we believe we are seeing positive momentum. We acknowledge
government stimulus programs may have helped the economy in the
back half of 2009 and this may not continue this year.
Nevertheless, we expect to grow our strategic platform earnings
through top line growth in 2010. This earnings expansion will
likely be partially offset by a decline in equity earnings from our
SunBelt joint venture and could be further challenged by raw
material inflation." "Our focus on becoming a specialty company is
unwavering," said Newlin about the Company's strategy. "Over the
last three years we have sought to transform PolyOne -- overhauling
our commercial philosophy, our leadership team, and how we
recognize and reward our people. We've also enhanced operational
excellence using lean six sigma and expanded our geographic
footprint. In so doing, we have radically shifted the earnings
profile of our company by reducing our dependence on traditionally
cyclical, commodity end markets and equity investment earnings, and
grown our specialty platform." The following chart highlights the
growth trends in profitability of PolyOne's three strategic
platforms over the past four years: (Photo:
http://www.newscom.com/cgi-bin/prnh/20100204/CL48716 ) Newlin
continued, "While we have been focused on specialty, we have not
abandoned core markets such as housing and automotive. We believe
that going forward we stand to benefit from the continued execution
of our specialty strategy, and at the same time realize earnings
leverage as housing and automotive recover from the unsustainably
low levels of 2009." New Global Organization Structure "Today I am
very pleased to announce a series of major organizational
improvements to our company that will help us better serve our
global customers, drive our earnings growth, better execute the
four pillars of our strategy, and leverage our strong geographic
footprint," said Newlin. "Broadly, we are changing our Specialty
platform from regionally organized to globally organized and we are
globalizing our sourcing function. To support every PolyOne
business unit and function, we will have regional presidents in
Europe and Asia to coordinate and direct activities within those
geographies, such that all of these improvements will allow us to
deliver global solutions with a local touch." The following
organization changes were effective January 1, 2010: John V. Van
Hulle is now president of Global Color, Additives and Inks,
responsible for determining strategy and driving revenue and
earnings growth for the global business. John will be responsible
for all sales, marketing, research and development, and
manufacturing functions of the Global Color, Additives and Inks
business. Craig M. Nikrant becomes president of Global Specialty
Engineered Materials and will be responsible for determining
strategy and driving revenue and earnings growth for the global
business. Craig will be responsible for all sales, marketing,
research and development, and manufacturing functions of Global
Specialty Engineered Materials. Bernard Baert is now president of
Europe and International. In this critical role, Bernard will be
responsible for driving performance, and ensuring consistency
within all platforms in Europe and Latin America, managing shared
services, and supporting growth of all our businesses. Bernard will
also be responsible for increasing our presence in Latin America
and the Middle East and supporting our Asian operations. Dr. Willie
Chien becomes president of Asia, our highest growth region. Willie
will be responsible for driving performance, and ensuring
consistency within all platforms in Asia, managing shared services,
and supporting growth of all our businesses across the entire
region. PolyOne Distribution and Performance Products and Solutions
will not see significant changes; however, Michael L. Rademacher,
will become president of Distribution and Robert M. Rosenau will
become president of Performance Products and Solutions. Thomas J.
Kedrowski, senior vice president, supply chain and operations will
assume direct responsibility for global sourcing, overseeing the
procurement of all raw materials, indirect materials, and services
on a global basis. Tom will also continue to lead the global
implementation of our lean six sigma initiative. "As you can see,
all of our business units will be organized globally, but we will
also reap strong benefits from geographic leaders, whose experience
and leadership will help PolyOne deliver consistency and growth,"
said Newlin. "This structure provides advantages for our customers,
shareholders, and associates. It will create value for our
customers by delivering consistent service and quality, superior
technology, and innovative solutions coupled with a strong
connection to the local culture, customs, and languages of our
customers." Beginning with the first quarter of 2010, the Company
will report the results of its operations according to its new
organization structure which will consist of five reportable
segments: (1) Global Color, Additives and Inks, (2) Global
Specialty Engineered Materials, (3) Performance Products and
Solutions, (4) Distribution, and (5) SunBelt, its equity investment
joint venture. Fourth Quarter 2009 Conference Call PolyOne will
host a conference call at 9 a.m. Eastern Time on Thursday, February
4, 2010. The conference dial-in number is 866-543-6403 (domestic)
or 617-213-8896 (international), passcode 30459045, conference
topic: fourth quarter 2009 PolyOne earnings conference call. The
call will be available for replay until February 11, 2010 on the
Company's Web site at http://www.polyone.com/investor or by phone
at 888-286-8010 (domestic) or 617-801-6888 (international). The
passcode for the replay is 50855919. About PolyOne PolyOne
Corporation, with 2009 revenues of $2.1 billion, is a premier
provider of specialized polymer materials, services and solutions.
Headquartered outside of Cleveland, Ohio USA, PolyOne has
operations around the world. For additional information on PolyOne,
visit our Web site at http://www.polyone.com/. To access PolyOne's
news library online, please visit http://www.polyone.com/news
Forward-looking Statements In this press release, statements that
are not reported financial results or other historical information
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management's expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. They use words such as "will,"
"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 and/or sales. Factors that could cause actual results
to differ materially from those implied by these forward-looking
statements include, but are not limited to: disruptions,
uncertainty or volatility in the credit markets that could
adversely impact the availability of credit already arranged and
the availability and cost of credit in the future; the financial
condition of our customers, including the ability of customers
(especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability; the
speed and extent of an economic recovery; the effect on foreign
operations of currency fluctuations, tariffs, and other political,
economic and regulatory risks; changes in polymer consumption
growth rates in the markets where we conduct business; changes in
global industry capacity or in the rate at which anticipated
changes in industry capacity come online; fluctuations in raw
material prices, quality and supply and in energy prices and
supply; production outages or material costs associated with
scheduled or unscheduled maintenance programs; unanticipated
developments that could occur with respect to contingencies such as
litigation and environmental matters; an inability to achieve or
delays in achieving or achievement of less than the anticipated
financial benefit from initiatives related to working capital
reductions, cost reductions, employee productivity goals and our
new global organization structure; an inability to raise or sustain
prices for products or services; an inability to maintain
appropriate relations with unions and employees; and other factors
affecting our business beyond our control, including, without
limitation, changes in the general economy, changes in interest
rates and changes in the rate of inflation. The above list of
factors is not exhaustive. We undertake no obligation to publicly
update forward-looking statements, whether as a result of new
information, future events or otherwise. You are advised to consult
any further disclosures we make on related subjects in our reports
on Form 10-Q, 8-K and 10-K that we provide to the Securities and
Exchange Commission. Attachment 1 Supplemental Information Summary
of Consolidated Operating Results (Unaudited) Fourth Quarter 2009
(In millions, except per share data) Operating results: Three
Months Ended Year Ended December 31, December 31,
------------------ ------------------ 2009 2008 2009 2008 ---- ----
---- ---- Sales $552.5 $541.8 $2,060.7 $2,738.7 Operating income
(loss) 25.6 (174.7) 98.4 (129.3) Net income (loss) 24.0 (282.6)
67.8 (272.9) Basic earnings (loss) per share $0.26 $(3.07) $0.73
$(2.94) Diluted earnings (loss) per share $0.25 $(3.07) $0.73
$(2.94) Total basic and diluted per share impact of special items
(1) $(0.01) $(2.01) $0.04 $(2.22) Special items (1): Three Months
Ended Year Ended December 31, December 31, ------------------
------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Cost of
sales Employee separation and plant phaseout costs $(1.2) $(17.4)
$(24.4) $(29.3) Reimbursement of previously incurred environmental
costs - - 23.9 - Environmental remediation costs (3.4) (1.3) (11.7)
(15.6) ---- ---- ----- ----- Impact on cost of sales (4.6) (18.7)
(12.2) (44.9) Selling and administrative Legal (0.1) - (0.3) -
Curtailment and other postemployment benefit gain 0.8 - 21.9 -
Employee separation and plant phaseout costs (0.8) (9.2) (2.8)
(10.4) ---- ---- ---- ----- Impact on selling and administrative
(0.1) (9.2) 18.8 (10.4) Gain on sale and (charges) related to
investment in equity affiliates 2.8 - 2.8 (4.7) Impairment of
goodwill - (170.0) (5.0) (170.0) Impact on operating income (loss)
(1.9) (197.9) 4.4 (230.0) Impairment of available for sale security
- (0.6) - (0.6) Impact on operating income and (loss) income before
income taxes (1.9) (198.5) 4.4 (230.6) Income tax (expense) benefit
on special items 1.1 13.5 (1.1) 24.4 --- ---- ---- ---- Impact of
special items on net income (loss) (0.8) (185.0) 3.3 (206.2) ====
====== === ====== Basic and diluted impact per common share $(0.01)
$(2.01) $0.04 $(2.22) Weighted average shares used to compute
earnings per share: Basic 92.5 92.1 92.4 92.7 Diluted 94.4 92.1
93.4 92.7 (1) Special items is a non-GAAP financial measure.
Special items include charges related to specific strategic
initiatives or financial restructurings such as: consolidation of
operations; employee separation costs resulting from personnel
reduction programs, plant phaseout costs, executive separation
agreements; asset impairments; environmental remediation costs,
fines or penalties for facilities no longer owned or closed in
prior years; gains and losses on the divestiture of operating
businesses, joint ventures and equity investments; gains and losses
on facility or property sales or disposals; results of litigation,
fines or penalties, where such litigation (or action relating to
the fines or penalties) arose prior to the commencement of the
performance period; and the effect of changes in tax law,
accounting principles or other such laws or provisions affecting
reported results or the effect of adverse determinations by
regulatory agencies relating to accounting principles or treatment.
Attachment 2 PolyOne Corporation and Subsidiaries Consolidated
Statements of Operations (Unaudited) (In millions, except per share
data) Three Months Ended Year Ended December 31, December 31,
------------------ ------------------ 2009 2008 2009 2008 ---- ----
---- ---- Sales $552.5 $541.8 $2,060.7 $2,738.7 Cost of sales 464.8
483.8 1,720.2 2,442.1 ----- ----- ------- ------- Gross margin 87.7
58.0 340.5 296.6 Selling and administrative 68.7 69.5 272.3 287.1
Adjustment to impairment of goodwill - 170.0 5.0 170.0 Income from
equity affiliates 6.6 6.8 35.2 31.2 --- --- ---- ---- Operating
income (loss) 25.6 (174.7) 98.4 (129.3) Interest expense, net (8.2)
(9.3) (34.3) (37.2) Other expense, net (1.1) (1.9) (9.6) (4.6) ----
---- ---- ---- Income (loss) before income taxes 16.3 (185.9) 54.5
(171.1) Income tax benefit (expense) 7.7 (96.7) 13.3 (101.8) ---
----- ---- ------ Net income (loss) $24.0 $(282.6) $67.8 $(272.9)
===== ======= ===== ======= Basic earnings (loss) per common share
$0.26 $(3.07) $0.73 $(2.94) Diluted earnings (loss) per common
share $0.25 $(3.07) $0.73 $(2.94) Weighted-average shares used to
compute earnings per share: Basic 92.5 92.1 92.4 92.7 Diluted 94.4
92.1 93.4 92.7 Equity affiliates earnings recorded by PolyOne:
SunBelt $3.1 $5.7 $29.7 $32.5 Other equity affiliates 3.5 1.1 5.5
(1.3) --- --- --- ---- Income from equity affiliates $6.6 $6.8
$35.2 $31.2 ==== ==== ===== ===== Attachment 3 PolyOne Corporation
and Subsidiaries Condensed Consolidated Balance Sheets (In
millions) (Unaudited) December 31, December 31, 2009 2008
------------ ------------ Assets Current assets: Cash and cash
equivalents $222.7 $44.3 Accounts receivable, net 274.4 262.1
Inventories 159.6 197.8 Deferred income tax assets - 1.0 Other
current assets 38.0 19.9 ---- ---- Total current assets 694.7 525.1
Property, net 392.4 432.0 Investment in equity affiliates and
nonconsolidated subsidiary 5.8 20.5 Goodwill 163.5 163.9 Other
intangible assets, net 71.7 69.1 Deferred income tax assets 8.1 0.5
Other non-current assets 55.7 66.6 ---- ---- Total assets $1,391.9
$1,277.7 ======== ======== Liabilities and Shareholders' Equity
Current liabilities: Current portion of long-term debt $19.9 $19.8
Short-term debt 0.5 6.2 Accounts payable 238.3 160.0 Accrued
expenses and other liabilities 117.0 118.2 ----- ----- Total
current liabilities 375.7 304.2 Long-term debt 389.2 408.3
Postretirement benefits other than pensions 21.8 80.9 Pension
benefits 173.0 225.0 Other non-current liabilities 98.6 83.4
Shareholders' equity 333.6 175.9 ----- ----- Total liabilities and
shareholders' equity $1,391.9 $1,277.7 ======== ======== Attachment
4 PolyOne Corporation and Subsidiaries Consolidated Statements of
Cash Flows (Unaudited) (In millions) Three Months Ended Year Ended
December 31, December 31, ------------------ ------------------
2009 2008 2009 2008 ---- ---- ---- ---- Operating Activities Net
income (loss) $24.0 $(282.6) $67.8 $(272.9) Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 15.0 16.2 64.8 68.0 Deferred income
tax (benefit) provision (3.5) 94.5 5.9 89.4 Provision for doubtful
accounts 0.3 0.7 3.3 6.0 Stock compensation expense 0.4 0.8 2.6 3.0
Impairment of goodwill - 170.0 5.0 170.0 Asset write-downs and
impairment charges, net of (gain) on sale of assets (4.0) 3.1 3.7
3.6 Companies carried at equity: Income from equity affiliates
(6.6) (6.8) (35.2) (31.2) Dividends and distributions received 8.9
12.1 36.5 32.9 Change in assets and liabilities, net of
acquisition: Decrease in accounts receivable 21.5 135.2 1.3 60.8
(Increase) decrease in inventories (0.8) 68.5 39.1 33.6 (Decrease)
increase in accounts payable (21.5) (130.8) 76.3 (94.7) (Decrease)
increase in sale of accounts receivable - (11.6) (14.2) 14.2
(Decrease) in accrued expenses and other (20.9) (13.8) (27.2)
(10.2) ----- ----- ----- ----- Net cash provided by operating
activities 12.8 55.5 229.7 72.5 Investing Activities Capital
expenditures (15.8) (12.9) (31.7) (42.5) Business acquisitions, net
of cash acquired (11.5) - (11.5) (150.2) Investment in affiliated
company - - - (1.1) Proceeds from sale of equity affiliate and
other assets 17.0 0.3 17.0 0.3 ---- --- ---- --- Net cash used by
investing activities (10.3) (12.6) (26.2) (193.5) Financing
Activities Change in short-term debt (0.2) (30.1) (5.7) 43.3
Issuance of long-term debt, net of debt issuance cost - - - 77.8
Repayment of long-term debt (20.0) (3.1) (20.0) (25.3) Purchase of
common stock for treasury - (0.9) - (8.9) Proceeds from exercise of
stock options - - - 1.1 --- --- --- --- Net cash (used) provided by
financing activities (20.2) (34.1) (25.7) 88.0 Effect of exchange
rate changes on cash (0.6) (1.5) 0.6 (2.1) ---- ---- --- ----
(Decrease) increase in cash and cash equivalents (18.3) 7.3 178.4
(35.1) Cash and cash equivalents at beginning of period 241.0 37.0
44.3 79.4 ----- ---- ---- ---- Cash and cash equivalents at end of
period $222.7 $44.3 $222.7 $44.3 ====== ===== ====== =====
Attachment 5 Business Segment and Platform Operations (Unaudited)
(In millions) Operating income at the segment level does not
include: special items as defined on attachment 1; corporate
general and administration costs that are not allocated to
segments; intersegment sales and profit eliminations; share-based
compensation costs; and certain other items that are not included
in the measure of segment profit and loss that is reported to and
reviewed by the chief operating decision maker. These costs are
included in Corporate and eliminations. Three Months Ended Year
Ended December 31, December 31, ------------------
------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Sales:
International Color and Engineered Materials $125.9 $96.4 $459.4
$587.4 Specialty Engineered Materials 53.5 54.4 208.6 252.3
Specialty Color, Additives and Inks 48.5 49.3 194.7 228.6 ---- ----
----- ----- Specialty Platform 227.9 200.1 862.7 1,068.3
Performance Products and Solutions 157.7 193.7 667.7 1,001.4
PolyOne Distribution 190.0 172.7 625.1 796.7 Corporate and
eliminations (23.1) (24.7) (94.8) (127.7) ----- ----- ----- ------
Sales $552.5 $541.8 $2,060.7 $2,738.7 ====== ====== ========
======== Gross margin: International Color and Engineered Materials
$28.6 $13.6 $98.5 $96.4 Specialty Engineered Materials 14.3 9.8
51.2 45.9 Specialty Color, Additives and Inks 13.0 11.0 48.2 48.0
---- ---- ---- ---- Specialty Platform 55.9 34.4 197.9 190.3
Performance Products and Solutions 19.8 28.2 93.5 85.3 PolyOne
Distribution 18.5 15.6 62.2 73.1 Resin and Intermediates - - - -
Corporate and eliminations (6.5) (20.2) (13.1) (52.1) ---- -----
----- ----- Gross margin $87.7 $58.0 $340.5 $296.6 ===== =====
====== ====== Operating income (loss): International Color and
Engineered Materials $8.7 $(2.4) $22.6 $20.4 Specialty Engineered
Materials 5.2 1.8 16.2 12.9 Specialty Color, Additives and Inks 4.5
2.5 14.2 13.5 --- --- ---- ---- Specialty Platform 18.4 1.9 53.0
46.8 Performance Products and Solutions 8.1 16.0 43.5 34.9 PolyOne
Distribution 9.5 6.2 24.8 28.1 Resin and Intermediates 2.0 4.4 25.5
28.6 Corporate and eliminations (12.4) (203.2) (48.4) (267.7) -----
------ ----- ------ Operating income (loss) $25.6 $(174.7) $98.4
$(129.3) ===== ======= ===== ======= Specialty Platform consists of
our three specialty businesses: International Color and Engineered
Materials; Specialty Engineered Materials; and Specialty Color,
Additives and Inks. We present Specialty Platform sales, gross
margin, and operating income because management believes that this
is useful information to investors in highlighting our collective
progress in advancing our specialization strategy. Attachment 6
Reconciliation of Non-GAAP Financial Measures (Unaudited) (In
millions, except per share data) Senior management uses gross
margin before special items and operating income before special
items to assess performance and allocate resources because senior
management believes that these measures are useful in understanding
current profitability levels and that current levels may serve as a
base for future performance. In addition, operating income before
the effect of special items is a component of various PolyOne
annual and long-term employee incentive plans and is used in debt
covenant computations. Senior management uses free cash flow to
assess our ability to service our debt. Below is a reconciliation
of non-GAAP financial measures to the most directly comparable
measures calculated and presented in accordance with GAAP. See
attachment 1 for a definition of special items. Reconciliation to
Consolidated Statements of Operations Three Months Ended Year Ended
December 31, December 31, ------------------ ------------------
2009 2008 2009 2008 ---- ---- ---- ---- Sales $552.5 $541.8
$2,060.7 $2,738.7 Gross margin before special items 92.3 76.7 352.7
341.5 Special items in gross margin (4.6) (18.7) (12.2) (44.9) ----
----- ----- ----- Gross margin $87.7 $58.0 $340.5 $296.6 =====
===== ====== ====== Gross margin before special items as a percent
of sales 16.7% 14.2% 17.1% 12.5% Operating income before special
items 27.5 23.2 94.0 100.7 Special items in operating income (1.9)
(197.9) 4.4 (230.0) ---- ------ --- ------ Operating income (loss)
$25.6 $(174.7) $98.4 $(129.3) ===== ======= ===== ======= Senior
management uses comparisons of net (loss) income and basic and
diluted (loss) earnings per share (EPS) before special items, tax
adjustments and tax valuation allowance to assess performance and
facilitate comparability of results with prior periods. Below is a
reconciliation of these non-GAAP financial measures to their most
directly comparable measure calculated and presented in accordance
with GAAP. Reconciliation to Consolidated Statements of Operations
Three Months Ended Three Months Ended December 31, 2009 December
31, 2008 ------------------ ------------------ $ EPS $ EPS --- ---
--- --- Net income (loss) $24.0 $0.25 $(282.6) $(3.07) Special
items, after-tax (attachment 1) 0.8 0.01 185.0 2.01 Tax (a) (12.0)
(0.12) 104.5 1.14 ----- ----- ----- ---- $12.8 $0.14 $6.9 $0.08
===== ===== ==== ===== Reconciliation to Consolidated Statements of
Operations Year Ended Year Ended December 31, 2009 December 31,
2008 ------------------ ------------------ $ EPS $ EPS --- --- ---
--- Net income(loss) $67.8 $0.73 $(272.9) $(2.94) Special items,
after-tax (attachment 1) (3.3) (0.04) 206.2 2.22 Tax (a) (29.8)
(0.32) 104.5 1.13 ----- ----- ----- ---- $34.7 $0.37 $37.8 $0.41
===== ===== ===== ===== (a) Net tax (benefit) loss from one-time
foreign and domestic income tax items and deferred income tax
valuation allowance adjustments on deferred tax assets Senior
management uses free cash flow to assess our ability to service our
debt. Below is a reconciliation of this non-GAAP financial measure
to the most directly comparable measure calculated and presented in
accordance with GAAP. Reconciliation to Consolidated Statements of
Cash Flows Three Months Ended Year Ended December 31, December 31,
------------------ ------------------ 2009 2008 2009 2008 ---- ----
---- ---- Net cash provided by operating activities $12.8 $55.5
$229.7 $72.5 Net cash used by investing activities (10.3) (12.6)
(26.2) (193.5) (Increase) decrease in sale of accounts receivable -
11.6 14.2 (14.2) --- ---- ---- ----- Free cash flow $2.5 $54.5
$217.7 $(135.2) ==== ===== ====== =======
http://www.newscom.com/cgi-bin/prnh/20100204/CL48716 DATASOURCE:
PolyOne Corporation CONTACT: Investor Relations: Joseph P. Kelley,
Vice President, Planning & Investor Relations, +1-440-930-3502,
, or Media: Amanda Marko, Director, Corporate Communications,
+1-440-930-3162, , both of PolyOne Corporation Web Site:
http://www.polyone.com/
Copyright