AKRON, Ohio, April 6, 2015 /PRNewswire/ -- A. Schulman, Inc.
(Nasdaq-GS: SHLM) announced today earnings for the fiscal 2015
second quarter ended February 28,
2015.
Bernard Rzepka, president and
chief executive officer, said, "I am encouraged by the improved
operational results in all of our regions during the quarter,
including the strong increase in our gross margins as a percent of
revenue, compared to the year-ago quarter. These results are a
testament to the success of our organic growth initiatives,
relentless cost reduction and restructuring activities - as well as
the contributions from well-integrated acquisitions - that
delivered considerable offset against the negative impact of the
rapid decline of the foreign currency."
Fiscal Second-Quarter Results
Consolidated net sales
for the fiscal 2015 second quarter were $542.3 million, compared with $588.5 million in the prior-year quarter. Foreign
currency translation negatively impacted net sales by $59.7 million. Incremental net sales in the
second quarter of fiscal 2015 from the Company's recent
acquisitions contributed $36.7
million. Gross margin, excluding certain items, in the
second quarter as a percent of net sales improved to 14.5% compared
with 12.8% in the prior-year period.
Rzepka continued, "Once again, EMEA not only held its own in a
challenging environment, but was able to improve operating margins
in local currencies during the second quarter of fiscal 2015. We
achieved substantial progress in the U.S. and Canada business as a result of our focus on
rebuilding our added-value businesses in this high-growth region.
Latin America had been challenged
in previous quarters but - through vigorous restructuring
activities - we are very pleased to see meaningful progress being
made. And in our APAC region, despite the competitive environment,
we see continuing volume strength and gross margin expansion."
EMEA net sales were $315.1 million
compared with $383.0 million in the
same prior-year period. Excluding the unfavorable impact of foreign
currency translation of $51.7
million, sales declined by 4.2%, primarily due to lower
sales prices as a result of declining raw material prices. These
declines were partially offset by increased organic volumes in the
masterbatch solutions product family, as well as the incremental
contribution of the Ferro Specialty Plastics acquisition which
increased net sales by $9.7 million.
EMEA gross profit was $44.5 million.
Excluding the negative impact of foreign currency translation of
$6.6 million, gross profit increased
by $3.6 million, or 7.5%, primarily
due to improved product mix and inventory management as well as the
incremental contribution of the Ferro Specialty Plastics
acquisition.
Net sales for the U.S. and Canada ("USCAN") were $133.4 million, an increase of 22.8% in the
second quarter compared with the prior-year period. During the
second quarter, the incremental contribution of the Prime Colorants
and Ferro Specialty Plastics acquisitions was $24.6 million in net sales. Excluding the impact
of foreign currency translation and acquisitions, price per pound
increased as a result of the Company's strategy to improve product
mix in the region. Foreign currency translation negatively impacted
net sales by $0.4 million. USCAN
gross profit was $19.7 million, an
increase of $6.4 million from the
same period last year. The benefits of recent acquisitions and
related integration, along with improved mix on gross profit were
partially offset by unfavorable foreign currency translation.
LATAM net sales for the quarter were $41.1 million, a decrease of $7.3 million compared with the prior-year period.
Excluding the unfavorable impact of foreign currency translation,
which decreased net sales by $5.6
million, average price per pound increased principally
driven by improved product mix. LATAM gross profit was $7.1 million, a decrease of $0.8 million from the comparable period last
year. The benefits of improved product mix were offset by
unfavorable foreign currency translation of $0.9 million.
APAC net sales were $52.6 million,
an increase of $4.2 million compared
with the prior-year period. During the second quarter, the Compco
acquisition contributed net sales of $2.4
million, which was offset by approximately $2.0 million negative impact of foreign currency
translation. APAC gross profit was $7.4
million, an increase of $0.9
million compared with the prior-year period. Gross profit
benefited from the positive contribution of the Compco acquisition
and increased organic volume.
Working Capital/Cash Flow
Cash provided from
operations was $1.1 million in the
six months ended February 28, 2015,
an improvement of $9.8 million.
Working capital days for the second quarter of fiscal 2015 were
approximately the same as the prior year quarter.
Capital expenditures for the quarter were $21.2 million, compared with $16.5 million for the prior-year quarter. These
expenditures were primarily related to the regular and ongoing
investment in the Company's global manufacturing facilities and
technical innovation and collaboration centers. During the six
months ended February 28, 2015, the
Company declared and paid quarterly cash dividends of $0.41 per common share. The total amount of these
dividends was $12.0 million.
Joseph Levanduski, chief
financial officer, said, "Our balance sheet remains strong and
continues to be a strength of this Company. We will maintain
discipline as we approach the upcoming close of the previously
announced Citadel acquisition, which is on track to close in the
third quarter of fiscal 2015. Our operational performance remains
strong even after giving full effect to the rapid foreign exchange
impact."
Year-to-Date Results
Net sales for the six months
ended February 28, 2015 were
$1,157.3 million, compared with
$1,173.9 million for the same period
last year. Incremental net sales for the six months from the
Company's recent acquisitions contributed $95.9 million. Foreign currency translation
unfavorably impacted net sales for the six months ended
February 28, 2015 by $85.9 million.
Operating Income before certain items for the six months ended
February 28, 2015 was $47.0 million, an increase of $3.2 million compared to the same prior year
period.
Business Outlook
Rzepka said, "We are again committed,
despite the foreign currencies declines, to realize another year of
earnings per share growth from our 2014 adjusted results of
$2.36 per diluted share. On
March 23, we revised our previously
announced fiscal 2015 full-year adjusted net income guidance to
$2.50 to $2.55 per diluted share,
which is a 6 percent to 8 percent improvement in earnings despite
the negative impact of the continuing steep decline of the euro and
other foreign currencies. This revision in full-year guidance does
not include any contributions from the pending acquisition of
Citadel."
Conference Call on the Web
A live Internet broadcast
of A. Schulman's conference call regarding fiscal 2015
second-quarter earnings can be accessed at 10:00 a.m. Eastern Time on Tuesday, April 7, 2015, on the Company's website,
www.aschulman.com. An archived replay of the call will also be
available on the website.
Investor Presentation Materials
Senior executives of
the Company may participate in meetings with analysts and investors
throughout the fiscal year. The Company has posted presentation
materials, portions of which may be used during such meetings, in
the Investors section of its website at www.aschulman.com. The
presentation will remain on the website as long as it is in
use.
About A. Schulman, Inc.
A. Schulman, Inc. is a leading
international supplier of high-performance plastic compounds and
resins headquartered in Akron,
Ohio. Since 1928, the Company has been providing innovative
solutions to meet its customers' demanding requirements. The
Company's customers span a wide range of markets such as packaging,
mobility, building & construction, electronics &
electrical, agriculture, personal care & hygiene, sports,
leisure & home, custom services and others. The Company employs
approximately 3,900 people and has 42 manufacturing facilities
globally. A. Schulman reported net sales of approximately
$2.5 billion for the fiscal year
ended August 31, 2014. Additional
information about A. Schulman can be found at
www.aschulman.com.
Use of Non-GAAP Financial Measures
This release
includes certain financial information determined by methods other
than in accordance with accounting principles generally accepted in
the United States ("GAAP"). These
non-GAAP financial measures include segment gross profit, SG&A
expenses excluding certain items, segment operating income,
operating income before certain items, net income excluding certain
items and net income per diluted share excluding certain items, as
discussed further in the Reconciliation of GAAP and Non-GAAP
Financial Measures below. These non-GAAP financial measures are
considered relevant to aid analysis and understanding of the
Company's results and business trends. However, non-GAAP measures
are not in accordance with, nor are they a substitute for, GAAP
measures, and tables included in this release reconcile each
non-GAAP financial measure with the most directly comparable GAAP
financial measure. The most directly comparable GAAP financial
measures for these purposes are gross profit, SG&A expenses,
operating income, net income and net income per diluted share. The
Company's non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
financial measures, and should be read only in conjunction with the
Company's consolidated financial statements prepared in accordance
with GAAP.
While the Company believes that these non-GAAP financial
measures provide useful supplemental information to investors,
there are very significant limitations associated with their use.
These non-GAAP financial measures are not prepared in accordance
with GAAP, may not be reported by all of the Company's competitors
and may not be directly comparable to similarly titled measures of
the Company's competitors due to potential differences in the exact
method of calculation. The Company compensates for these
limitations by using these non-GAAP financial measures as
supplements to GAAP financial measures and by reviewing the
reconciliations of the non-GAAP financial measures to their most
comparable GAAP financial measures.
Cautionary Statements
A number of the matters
discussed in this document that are not historical or current facts
deal with potential future circumstances and developments and may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by the fact that they do not relate
strictly to historic or current facts and relate to future events
and expectations. Forward-looking statements contain such words as
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance. Forward-looking statements are based on management's
current expectations and include known and unknown risks,
uncertainties and other factors, many of which management is unable
to predict or control, that may cause actual results, performance
or achievements to differ materially from those expressed or
implied in the forward-looking statements. Important factors that
could cause actual results to differ materially from those
suggested by these forward-looking statements, and that could
adversely affect the Company's future financial performance,
include, but are not limited to, the following:
- worldwide and regional economic, business and political
conditions, including continuing economic uncertainties in some or
all of the Company's major product markets or countries where the
Company has operations;
- the effectiveness of the Company's efforts to improve operating
margins through sales growth, price increases, productivity gains,
and improved purchasing techniques;
- competitive factors, including intense price competition;
- fluctuations in the value of currencies in 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 ability to consummate the
Citadel acquisition and the timing of the closing thereof
for any reason, whether or not the fault of the Company;
- the failure to obtain the necessary financing in connection
with the Citadel acquisition for any
reason, whether or not the fault of the Company;
- 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 or simply less effective
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 after
the closing 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, 2014. In addition, risks and
uncertainties not presently known to the Company or that it
believes to be immaterial also may adversely affect the Company.
Should any known or unknown risks or uncertainties develop into
actual events, or underlying assumptions prove inaccurate, these
developments could have material adverse effects on the Company's
business, financial condition and results of operations.
SHLM_ALL
A. SCHULMAN,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
Three months ended
February 28,
|
|
Six months ended
February 28,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Unaudited
(In thousands, except
per share data)
|
Net
sales
|
$
|
542,295
|
|
|
$
|
588,508
|
|
|
$
|
1,157,348
|
|
|
$
|
1,173,905
|
|
Cost of
sales
|
464,221
|
|
|
514,209
|
|
|
992,430
|
|
|
1,020,498
|
|
Selling, general and
administrative expenses
|
70,093
|
|
|
58,713
|
|
|
130,640
|
|
|
116,111
|
|
Restructuring
expense
|
2,662
|
|
|
1,727
|
|
|
7,881
|
|
|
3,505
|
|
Asset
impairment
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
Operating
income
|
5,319
|
|
|
13,755
|
|
|
26,397
|
|
|
33,687
|
|
Interest
expense
|
2,311
|
|
|
2,488
|
|
|
4,670
|
|
|
4,679
|
|
Interest
income
|
(66)
|
|
|
(81)
|
|
|
(161)
|
|
|
(143)
|
|
Foreign currency
transaction (gains) losses
|
1,141
|
|
|
1,466
|
|
|
2,240
|
|
|
2,148
|
|
Other (income)
expense, net
|
(245)
|
|
|
(193)
|
|
|
(404)
|
|
|
(271)
|
|
Gain on early
extinguishment of debt
|
(1,290)
|
|
|
—
|
|
|
(1,290)
|
|
|
—
|
|
Income (loss) from
continuing operations before taxes
|
3,468
|
|
|
10,075
|
|
|
21,342
|
|
|
27,274
|
|
Provision (benefit)
for U.S. and foreign income taxes
|
3,971
|
|
|
3,427
|
|
|
8,457
|
|
|
7,995
|
|
Income (loss) from
continuing operations
|
(503)
|
|
|
6,648
|
|
|
12,885
|
|
|
19,279
|
|
Income (loss) from
discontinued operations, net of tax
|
(58)
|
|
|
347
|
|
|
(68)
|
|
|
3,002
|
|
Net income
(loss)
|
(561)
|
|
|
6,995
|
|
|
12,817
|
|
|
22,281
|
|
Noncontrolling
interests
|
(327)
|
|
|
(136)
|
|
|
(547)
|
|
|
(351)
|
|
Net income (loss)
attributable to A. Schulman, Inc.
|
$
|
(888)
|
|
|
$
|
6,859
|
|
|
$
|
12,270
|
|
|
$
|
21,930
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,138
|
|
|
29,059
|
|
|
29,078
|
|
|
29,038
|
|
Diluted
|
29,138
|
|
|
29,277
|
|
|
29,538
|
|
|
29,240
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to A. Schulman, Inc.
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.03)
|
|
|
$
|
0.23
|
|
|
$
|
0.42
|
|
|
$
|
0.65
|
|
Income (loss) from
discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.11
|
|
Net income (loss)
attributable to A. Schulman, Inc.
|
$
|
(0.03)
|
|
|
$
|
0.24
|
|
|
$
|
0.42
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to A. Schulman, Inc.
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.03)
|
|
|
$
|
0.22
|
|
|
$
|
0.42
|
|
|
$
|
0.65
|
|
Income (loss) from
discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.10
|
|
Net income (loss)
attributable to A. Schulman, Inc.
|
$
|
(0.03)
|
|
|
$
|
0.23
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
$
|
0.205
|
|
|
$
|
0.200
|
|
|
$
|
0.410
|
|
|
$
|
0.400
|
|
A. SCHULMAN,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
February 28,
2015
|
|
August 31,
2014
|
|
Unaudited
(In
thousands)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
91,872
|
|
|
$
|
135,493
|
|
Accounts receivable,
less allowance for doubtful accounts of $9,520 at February 28, 2015
and
$10,844 at August 31, 2014
|
354,257
|
|
|
384,444
|
|
Inventories
|
257,464
|
|
|
292,141
|
|
Prepaid expenses and
other current assets
|
40,399
|
|
|
40,473
|
|
Total current
assets
|
743,992
|
|
|
852,551
|
|
Property, plant
and equipment, at cost:
|
|
|
|
Land and
improvements
|
25,883
|
|
|
28,439
|
|
Buildings and
leasehold improvements
|
144,951
|
|
|
160,858
|
|
Machinery and
equipment
|
373,938
|
|
|
398,563
|
|
Furniture and
fixtures
|
32,020
|
|
|
41,255
|
|
Construction in
progress
|
20,523
|
|
|
16,718
|
|
Gross property,
plant and equipment
|
597,315
|
|
|
645,833
|
|
Accumulated
depreciation
|
357,346
|
|
|
391,912
|
|
Net property,
plant and equipment
|
239,969
|
|
|
253,921
|
|
Deferred charges and
other noncurrent assets
|
73,211
|
|
|
65,079
|
|
Goodwill
|
192,940
|
|
|
202,299
|
|
Intangible assets,
net
|
123,932
|
|
|
138,634
|
|
Total
assets
|
$
|
1,374,044
|
|
|
$
|
1,512,484
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
251,091
|
|
|
$
|
314,957
|
|
U.S. and foreign
income taxes payable
|
4,426
|
|
|
6,385
|
|
Accrued payroll,
taxes and related benefits
|
42,232
|
|
|
54,199
|
|
Other accrued
liabilities
|
46,067
|
|
|
46,054
|
|
Short-term
debt
|
24,197
|
|
|
31,748
|
|
Total current
liabilities
|
368,013
|
|
|
453,343
|
|
Long-term
debt
|
365,406
|
|
|
339,546
|
|
Pension
plans
|
112,501
|
|
|
129,949
|
|
Deferred income
taxes
|
22,003
|
|
|
23,826
|
|
Other long-term
liabilities
|
26,485
|
|
|
29,369
|
|
Total
liabilities
|
894,408
|
|
|
976,033
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $1 par
value, authorized - 75,000 shares, issued - 48,367 shares at
February 28,
2015 and 48,185 shares at August 31, 2014
|
48,367
|
|
|
48,185
|
|
Additional paid-in
capital
|
272,934
|
|
|
268,545
|
|
Accumulated other
comprehensive income (loss)
|
(73,801)
|
|
|
(16,691)
|
|
Retained
earnings
|
607,162
|
|
|
606,898
|
|
Treasury stock, at
cost, 19,079 shares at February 28, 2015 and 18,973 shares at
August 31, 2014
|
(383,170)
|
|
|
(379,894)
|
|
Total A. Schulman,
Inc.'s stockholders' equity
|
471,492
|
|
|
527,043
|
|
Noncontrolling
interests
|
8,144
|
|
|
9,408
|
|
Total
equity
|
479,636
|
|
|
536,451
|
|
Total liabilities
and equity
|
$
|
1,374,044
|
|
|
$
|
1,512,484
|
|
A. SCHULMAN,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Six months ended
February 28,
|
|
2015
|
|
2014
|
|
Unaudited
(In
thousands)
|
Operating from
continuing and discontinued operations:
|
|
|
|
Net income
|
$
|
12,817
|
|
|
$
|
22,281
|
|
Adjustments to
reconcile net income to net cash provided from (used in) operating
activities:
|
|
|
|
Depreciation
|
17,990
|
|
|
16,419
|
|
Amortization
|
8,271
|
|
|
6,669
|
|
Deferred tax
provision (benefit)
|
(96)
|
|
|
(2,895)
|
|
Pension,
postretirement benefits and other compensation
|
6,173
|
|
|
4,494
|
|
Restricted stock
compensation - CEO transition costs, net of cash
|
4,789
|
|
|
—
|
|
Asset
impairment
|
—
|
|
|
104
|
|
Gain on sale of
assets from discontinued operations
|
—
|
|
|
(3,331)
|
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(4,197)
|
|
|
(21,283)
|
|
Inventories
|
3,838
|
|
|
(13,107)
|
|
Accounts
payable
|
(38,126)
|
|
|
(15,534)
|
|
Income
taxes
|
(1,210)
|
|
|
229
|
|
Accrued payroll and
other accrued liabilities
|
(3,159)
|
|
|
375
|
|
Other assets and
long-term liabilities
|
(6,003)
|
|
|
(3,100)
|
|
Net cash provided
from (used in) operating activities
|
1,087
|
|
|
(8,679)
|
|
Investing from
continuing and discontinued operations:
|
|
|
|
Expenditures for
property, plant and equipment
|
(21,238)
|
|
|
(16,541)
|
|
Investment in equity
investees
|
(12,456)
|
|
|
—
|
|
Proceeds from the
sale of assets
|
1,366
|
|
|
4,738
|
|
Business
acquisitions, net of cash
|
(6,698)
|
|
|
(115,624)
|
|
Net cash provided
from (used in) investing activities
|
(39,026)
|
|
|
(127,427)
|
|
Financing from
continuing and discontinued operations:
|
|
|
|
Cash dividends
paid
|
(12,006)
|
|
|
(11,777)
|
|
Increase (decrease)
in short-term debt
|
(3,415)
|
|
|
2,469
|
|
Borrowings on
long-term debt
|
122,330
|
|
|
686,955
|
|
Repayments on
long-term debt including current portion
|
(91,381)
|
|
|
(583,914)
|
|
Payment of debt
issuance costs
|
—
|
|
|
(1,782)
|
|
Noncontrolling
interests' contributions (distributions)
|
(1,750)
|
|
|
—
|
|
Issuances of stock,
common and treasury
|
132
|
|
|
276
|
|
Redemptions of common
stock
|
(4,999)
|
|
|
(361)
|
|
Purchases of treasury
stock
|
(3,335)
|
|
|
(1,116)
|
|
Net cash provided
from (used in) financing activities
|
5,576
|
|
|
90,750
|
|
Effect of exchange
rate changes on cash
|
(11,258)
|
|
|
1,355
|
|
Net increase
(decrease) in cash and cash equivalents
|
(43,621)
|
|
|
(44,001)
|
|
Cash and cash
equivalents at beginning of period
|
135,493
|
|
|
134,054
|
|
Cash and cash
equivalents at end of period
|
$
|
91,872
|
|
|
$
|
90,053
|
|
A. SCHULMAN,
INC.
|
Reconciliation of
GAAP and Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
February 28, 2015
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Asset
Impairment
|
|
Operating
Income
|
|
Operating
Income
per Pound
|
|
Income
Tax
Expense (benefit)
|
|
Net Income
Attributable to A.
Schulman, Inc.
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
464,221
|
|
|
14.4
|
%
|
|
$
|
70,093
|
|
|
$
|
2,662
|
|
|
$
|
—
|
|
|
$
|
5,319
|
|
|
$
|
0.010
|
|
|
$
|
3,971
|
|
|
$
|
(888)
|
|
|
$
|
(0.03)
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to
acquisitions and integrations (1)
|
|
(65)
|
|
|
|
|
(3,272)
|
|
|
—
|
|
|
—
|
|
|
3,337
|
|
|
|
|
202
|
|
|
3,135
|
|
|
0.11
|
|
Restructuring and
related costs (2)
|
|
(298)
|
|
|
|
|
(819)
|
|
|
(2,662)
|
|
|
—
|
|
|
3,779
|
|
|
|
|
519
|
|
|
3,260
|
|
|
0.11
|
|
CEO transition costs
(3)
|
|
—
|
|
|
|
|
(6,167)
|
|
|
—
|
|
|
—
|
|
|
6,167
|
|
|
|
|
—
|
|
|
6,167
|
|
|
0.21
|
|
Asset write-downs
(4)
|
|
(298)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
|
|
—
|
|
|
298
|
|
|
0.01
|
|
Gain on early
extinguishment of debt (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(428)
|
|
|
(863)
|
|
|
(0.03)
|
|
Tax benefits
(charges)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(283)
|
|
|
283
|
|
|
0.01
|
|
Loss (income) from
discontinued operations
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
58
|
|
|
—
|
|
Total certain
items
|
|
(661)
|
|
|
0.1
|
%
|
|
(10,258)
|
|
|
(2,662)
|
|
|
—
|
|
|
13,581
|
|
|
0.026
|
|
|
10
|
|
|
12,338
|
|
|
0.42
|
|
As
Adjusted
|
|
$
|
463,560
|
|
|
14.5
|
%
|
|
$
|
59,835
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,900
|
|
|
$
|
0.037
|
|
|
$
|
3,981
|
|
|
$
|
11,450
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
11.0
|
%
|
|
|
|
|
|
3.5
|
%
|
|
|
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
February 28, 2014
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Asset
Impairment
|
|
Operating
Income
|
|
Operating
Income
per Pound
|
|
Income
Tax Expense (benefit)
|
|
Net Income
Attributable to A. Schulman, Inc.
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
514,209
|
|
|
12.6
|
%
|
|
$
|
58,713
|
|
|
$
|
1,727
|
|
|
$
|
104
|
|
|
$
|
13,755
|
|
|
$
|
0.027
|
|
|
$
|
3,427
|
|
|
$
|
6,859
|
|
|
$
|
0.23
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to
acquisitions and integrations (1)
|
|
(34)
|
|
|
|
|
(1,817)
|
|
|
—
|
|
|
—
|
|
|
1,851
|
|
|
|
|
30
|
|
|
1,821
|
|
|
0.06
|
|
Restructuring and
related costs (2)
|
|
(137)
|
|
|
|
|
(928)
|
|
|
(1,727)
|
|
|
—
|
|
|
2,792
|
|
|
|
|
279
|
|
|
2,513
|
|
|
0.09
|
|
Asset write-downs
(4)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
(104)
|
|
|
104
|
|
|
|
|
34
|
|
|
70
|
|
|
—
|
|
Inventory step-up
(5)
|
|
(782)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
782
|
|
|
|
|
—
|
|
|
782
|
|
|
0.03
|
|
Tax benefits
(charges)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
426
|
|
|
(426)
|
|
|
(0.01)
|
|
Loss (income) from
discontinued operations
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(347)
|
|
|
(0.01)
|
|
Total certain
items
|
|
(953)
|
|
|
0.2
|
%
|
|
(2,745)
|
|
|
(1,727)
|
|
|
(104)
|
|
|
5,529
|
|
|
0.012
|
|
|
769
|
|
|
4,413
|
|
|
0.16
|
|
As
Adjusted
|
|
$
|
513,256
|
|
|
12.8
|
%
|
|
$
|
55,968
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,284
|
|
|
$
|
0.039
|
|
|
$
|
4,196
|
|
|
$
|
11,272
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
9.5
|
%
|
|
|
|
|
|
3.3
|
%
|
|
|
|
|
|
1.9
|
%
|
|
|
Six months ended
February 28, 2015
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Asset
Impairment
|
|
Operating
Income
|
|
Operating
Income
per Pound
|
|
Income Tax Expense
(benefit)
|
|
Net Income
Attributable to A.
Schulman, Inc.
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
992,430
|
|
|
14.2
|
%
|
|
$
|
130,640
|
|
|
$
|
7,881
|
|
|
$
|
—
|
|
|
$
|
26,397
|
|
|
$
|
0.025
|
|
|
$
|
8,457
|
|
|
$
|
12,270
|
|
|
$
|
0.42
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to
acquisitions and integrations (1)
|
|
(115)
|
|
|
|
|
(4,274)
|
|
|
—
|
|
|
—
|
|
|
4,389
|
|
|
|
|
278
|
|
|
4,111
|
|
|
0.14
|
|
Restructuring and
related costs (2)
|
|
(298)
|
|
|
|
|
(1,180)
|
|
|
(7,881)
|
|
|
—
|
|
|
9,359
|
|
|
|
|
2,002
|
|
|
7,357
|
|
|
0.24
|
|
CEO transition costs
(3)
|
|
—
|
|
|
|
|
(6,167)
|
|
|
—
|
|
|
—
|
|
|
6,167
|
|
|
|
|
—
|
|
|
6,167
|
|
|
0.21
|
|
Asset write-downs
(4)
|
|
(298)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
|
|
—
|
|
|
298
|
|
|
0.01
|
|
Inventory step-up
(5)
|
|
(341)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
341
|
|
|
|
|
102
|
|
|
239
|
|
|
0.01
|
|
Gain on early
extinguishment of debt (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(428)
|
|
|
(863)
|
|
|
(0.03)
|
|
Tax benefits
(charges)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(282)
|
|
|
282
|
|
|
0.01
|
|
Loss (income) from
discontinued operations
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
68
|
|
|
—
|
|
Total certain
items
|
|
(1,052)
|
|
|
0.1
|
%
|
|
(11,621)
|
|
|
(7,881)
|
|
|
—
|
|
|
20,554
|
|
|
0.019
|
|
|
1,672
|
|
|
17,659
|
|
|
0.59
|
|
As
Adjusted
|
|
$
|
991,378
|
|
|
14.3
|
%
|
|
$
|
119,019
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46,951
|
|
|
$
|
0.044
|
|
|
$
|
10,129
|
|
|
$
|
29,929
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
10.3
|
%
|
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
February 28, 2014
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Asset
Impairment
|
|
Operating
Income
|
|
Operating
Income
per Pound
|
|
Income Tax Expense
(benefit)
|
|
Net Income
Attributable to A. Schulman, Inc.
|
|
Diluted
EPS
|
|
|
(In thousands, except
for %'s, per pound and per share data)
|
As
reported
|
|
$
|
1,020,498
|
|
|
13.1
|
%
|
|
$
|
116,111
|
|
|
$
|
3,505
|
|
|
$
|
104
|
|
|
$
|
33,687
|
|
|
$
|
0.034
|
|
|
$
|
7,995
|
|
|
$
|
21,930
|
|
|
$
|
0.75
|
|
Certain
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to
acquisitions and integrations (1)
|
|
(34)
|
|
|
|
|
(2,453)
|
|
|
—
|
|
|
—
|
|
|
2,487
|
|
|
|
|
125
|
|
|
2,370
|
|
|
0.08
|
|
Restructuring and
related costs (2)
|
|
(500)
|
|
|
|
|
(2,159)
|
|
|
(3,505)
|
|
|
—
|
|
|
6,164
|
|
|
|
|
601
|
|
|
5,852
|
|
|
0.20
|
|
Asset write-downs
(4)
|
|
(108)
|
|
|
|
|
—
|
|
|
—
|
|
|
(104)
|
|
|
212
|
|
|
|
|
34
|
|
|
178
|
|
|
0.01
|
|
Inventory step-up
(5)
|
|
(1,199)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,199
|
|
|
|
|
98
|
|
|
1,101
|
|
|
0.04
|
|
Tax benefits
(charges)
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
427
|
|
|
(427)
|
|
|
(0.02)
|
|
Loss (income) from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,002)
|
|
|
(0.10)
|
|
Total certain
items
|
|
(1,841)
|
|
|
0.1
|
%
|
|
(4,612)
|
|
|
(3,505)
|
|
|
(104)
|
|
|
10,062
|
|
|
0.010
|
|
|
1,285
|
|
|
6,072
|
|
|
0.21
|
|
As
Adjusted
|
|
$
|
1,018,657
|
|
|
13.2
|
%
|
|
$
|
111,499
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,749
|
|
|
$
|
0.044
|
|
|
$
|
9,280
|
|
|
$
|
28,002
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Revenue
|
|
|
|
|
|
9.5
|
%
|
|
|
|
|
|
3.7
|
%
|
|
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 - 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.
|
|
2 - 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.
|
|
3 - 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.
|
|
4 - Asset write-downs
primarily relate to asset impairments and accelerated
depreciation.
|
|
5 - Inventory step-up
costs represent the amortization of adjustments to fair value of
inventory acquired for acquisition purchase accounting.
|
|
6 - Represents a
pre-tax net gain of $1.3 million on the early extinguishment of
debt.
|
A.
SCHULMAN, INC.
|
SUPPLEMENTAL
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
February 28,
|
EMEA
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
29,235
|
|
$
|
35,913
|
|
$
|
(6,678)
|
|
(18.6)%
|
|
10,770
|
|
11,641
|
|
(871)
|
|
(7.5)
|
%
|
Masterbatch
Solutions
|
|
99,779
|
|
105,625
|
|
(5,846)
|
|
(5.5)%
|
|
93,068
|
|
83,217
|
|
9,851
|
|
11.8
|
%
|
Engineered
Plastics
|
|
89,695
|
|
115,132
|
|
(25,437)
|
|
(22.1)%
|
|
63,491
|
|
69,605
|
|
(6,114)
|
|
(8.8)
|
%
|
Specialty
Powders
|
|
35,286
|
|
43,368
|
|
(8,082)
|
|
(18.6)%
|
|
43,603
|
|
42,469
|
|
1,134
|
|
2.7
|
%
|
Distribution
Services
|
|
61,151
|
|
82,986
|
|
(21,835)
|
|
(26.3)%
|
|
97,926
|
|
99,284
|
|
(1,358)
|
|
(1.4)
|
%
|
Total EMEA
|
|
$
|
315,146
|
|
$
|
383,024
|
|
$
|
(67,878)
|
|
(17.7)%
|
|
308,858
|
|
306,216
|
|
2,642
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
February 28,
|
USCAN
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
10,093
|
|
$
|
8,417
|
|
$
|
1,676
|
|
19.9
|
%
|
|
3,395
|
|
2,849
|
|
546
|
|
19.2
|
%
|
Masterbatch
Solutions
|
|
39,101
|
|
30,397
|
|
8,704
|
|
28.6
|
%
|
|
50,533
|
|
44,923
|
|
5,610
|
|
12.5
|
%
|
Engineered
Plastics
|
|
44,894
|
|
31,827
|
|
13,067
|
|
41.1
|
%
|
|
27,972
|
|
20,439
|
|
7,533
|
|
36.9
|
%
|
Specialty
Powders
|
|
22,390
|
|
21,041
|
|
1,349
|
|
6.4
|
%
|
|
33,678
|
|
34,619
|
|
(941)
|
|
(2.7)
|
%
|
Distribution
Services
|
|
16,956
|
|
17,010
|
|
(54)
|
|
(0.3)
|
%
|
|
17,891
|
|
17,734
|
|
157
|
|
0.9
|
%
|
Total
USCAN
|
|
$
|
133,434
|
|
$
|
108,692
|
|
$
|
24,742
|
|
22.8
|
%
|
|
133,469
|
|
120,564
|
|
12,905
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
February 28,
|
LATAM
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
1,236
|
|
$
|
864
|
|
$
|
372
|
|
43.1
|
%
|
|
504
|
|
344
|
|
160
|
|
46.5
|
%
|
Masterbatch
Solutions
|
|
20,247
|
|
23,667
|
|
(3,420)
|
|
(14.5)
|
%
|
|
14,544
|
|
15,737
|
|
(1,193)
|
|
(7.6)
|
%
|
Engineered
Plastics
|
|
10,775
|
|
12,197
|
|
(1,422)
|
|
(11.7)
|
%
|
|
7,892
|
|
8,638
|
|
(746)
|
|
(8.6)
|
%
|
Specialty
Powders
|
|
8,875
|
|
11,679
|
|
(2,804)
|
|
(24.0)
|
%
|
|
7,453
|
|
10,951
|
|
(3,498)
|
|
(31.9)
|
%
|
Distribution
Services
|
|
—
|
|
—
|
|
—
|
|
N/A
|
|
—
|
|
—
|
|
—
|
|
N/A
|
Total
LATAM
|
|
$
|
41,133
|
|
$
|
48,407
|
|
$
|
(7,274)
|
|
(15.0)
|
%
|
|
30,393
|
|
35,670
|
|
(5,277)
|
|
(14.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
February 28,
|
APAC
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
2,702
|
|
$
|
571
|
|
$
|
2,131
|
|
373.2
|
%
|
|
1,823
|
|
429
|
|
1,394
|
|
324.9
|
%
|
Masterbatch
Solutions
|
|
19,324
|
|
19,883
|
|
(559)
|
|
(2.8)
|
%
|
|
19,715
|
|
17,930
|
|
1,785
|
|
10.0
|
%
|
Engineered
Plastics
|
|
27,466
|
|
23,884
|
|
3,582
|
|
15.0
|
%
|
|
19,426
|
|
16,013
|
|
3,413
|
|
21.3
|
%
|
Specialty
Powders
|
|
2,682
|
|
3,776
|
|
(1,094)
|
|
(29.0)
|
%
|
|
2,776
|
|
3,461
|
|
(685)
|
|
(19.8)
|
%
|
Distribution
Services
|
|
408
|
|
271
|
|
137
|
|
50.6
|
%
|
|
517
|
|
361
|
|
156
|
|
43.2
|
%
|
Total APAC
|
|
$
|
52,582
|
|
$
|
48,385
|
|
$
|
4,197
|
|
8.7
|
%
|
|
44,257
|
|
38,194
|
|
6,063
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Six months ended
February 28,
|
EMEA
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
62,694
|
|
|
$
|
71,986
|
|
|
$
|
(9,292)
|
|
|
(12.9)
|
%
|
|
22,280
|
|
|
23,972
|
|
|
(1,692)
|
|
|
(7.1)%
|
|
Masterbatch
Solutions
|
|
216,179
|
|
|
214,527
|
|
|
1,652
|
|
|
0.8
|
%
|
|
190,398
|
|
|
168,557
|
|
|
21,841
|
|
|
13.0
|
%
|
Engineered
Plastics
|
|
198,968
|
|
|
237,348
|
|
|
(38,380)
|
|
|
(16.2)
|
%
|
|
135,181
|
|
|
144,762
|
|
|
(9,581)
|
|
|
(6.6)%
|
|
Specialty
Powders
|
|
76,735
|
|
|
90,408
|
|
|
(13,673)
|
|
|
(15.1)
|
%
|
|
87,045
|
|
|
89,467
|
|
|
(2,422)
|
|
|
(2.7)%
|
|
Distribution
Services
|
|
131,761
|
|
|
161,217
|
|
|
(29,456)
|
|
|
(18.3)
|
%
|
|
190,412
|
|
|
191,678
|
|
|
(1,266)
|
|
|
(0.7)%
|
|
Total EMEA
|
|
$
|
686,337
|
|
|
$
|
775,486
|
|
|
$
|
(89,149)
|
|
|
(11.5)
|
%
|
|
625,316
|
|
|
618,436
|
|
|
6,880
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Six months ended
February 28,
|
USCAN
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
20,315
|
|
|
$
|
15,557
|
|
|
$
|
4,758
|
|
|
30.6
|
%
|
|
6,817
|
|
|
5,028
|
|
|
1,789
|
|
|
35.6
|
%
|
Masterbatch
Solutions
|
|
82,437
|
|
|
61,095
|
|
|
21,342
|
|
|
34.9
|
%
|
|
108,693
|
|
|
92,564
|
|
|
16,129
|
|
|
17.4
|
%
|
Engineered
Plastics
|
|
92,668
|
|
|
56,599
|
|
|
36,069
|
|
|
63.7
|
%
|
|
58,053
|
|
|
37,401
|
|
|
20,652
|
|
|
55.2
|
%
|
Specialty
Powders
|
|
48,659
|
|
|
43,228
|
|
|
5,431
|
|
|
12.6
|
%
|
|
77,820
|
|
|
75,245
|
|
|
2,575
|
|
|
3.4
|
%
|
Distribution
Services
|
|
34,062
|
|
|
28,154
|
|
|
5,908
|
|
|
21.0
|
%
|
|
35,050
|
|
|
30,110
|
|
|
4,940
|
|
|
16.4
|
%
|
Total
USCAN
|
|
$
|
278,141
|
|
|
$
|
204,633
|
|
|
$
|
73,508
|
|
|
35.9
|
%
|
|
286,433
|
|
|
240,348
|
|
|
46,085
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Six months ended
February 28,
|
LATAM
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
2,403
|
|
|
$
|
1,890
|
|
|
$
|
513
|
|
|
27.1
|
%
|
|
951
|
|
|
769
|
|
|
182
|
|
|
23.7
|
%
|
Masterbatch
Solutions
|
|
42,202
|
|
|
46,445
|
|
|
(4,243)
|
|
|
(9.1)
|
%
|
|
29,527
|
|
|
30,624
|
|
|
(1,097)
|
|
|
(3.6)
|
%
|
Engineered
Plastics
|
|
22,968
|
|
|
24,509
|
|
|
(1,541)
|
|
|
(6.3)
|
%
|
|
16,579
|
|
|
17,281
|
|
|
(702)
|
|
|
(4.1)
|
%
|
Specialty
Powders
|
|
19,741
|
|
|
26,149
|
|
|
(6,408)
|
|
|
(24.5)
|
%
|
|
16,280
|
|
|
22,446
|
|
|
(6,166)
|
|
|
(27.5)
|
%
|
Distribution
Services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
Total
LATAM
|
|
$
|
87,314
|
|
|
$
|
98,993
|
|
|
$
|
(11,679)
|
|
|
(11.8)
|
%
|
|
63,337
|
|
|
71,120
|
|
|
(7,783)
|
|
|
(10.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Six months ended
February 28,
|
APAC
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
5,932
|
|
|
$
|
1,273
|
|
|
$
|
4,659
|
|
|
366.0
|
%
|
|
4,194
|
|
|
962
|
|
|
3,232
|
|
|
336.0
|
%
|
Masterbatch
Solutions
|
|
39,663
|
|
|
40,409
|
|
|
(746)
|
|
|
(1.8)
|
%
|
|
38,568
|
|
|
35,473
|
|
|
3,095
|
|
|
8.7
|
%
|
Engineered
Plastics
|
|
52,742
|
|
|
45,282
|
|
|
7,460
|
|
|
16.5
|
%
|
|
36,331
|
|
|
29,593
|
|
|
6,738
|
|
|
22.8
|
%
|
Specialty
Powders
|
|
6,455
|
|
|
7,026
|
|
|
(571)
|
|
|
(8.1)
|
%
|
|
6,467
|
|
|
6,423
|
|
|
44
|
|
|
0.7
|
%
|
Distribution
Services
|
|
764
|
|
|
803
|
|
|
(39)
|
|
|
(4.9)
|
%
|
|
927
|
|
|
1,005
|
|
|
(78)
|
|
|
(7.8)
|
%
|
Total APAC
|
|
$
|
105,556
|
|
|
$
|
94,793
|
|
|
$
|
10,763
|
|
|
11.4
|
%
|
|
86,487
|
|
|
73,456
|
|
|
13,031
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Three months ended
February 28,
|
Consolidated
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
43,266
|
|
|
$
|
45,765
|
|
|
$
|
(2,499)
|
|
|
(40.0)
|
%
|
|
16,492
|
|
|
15,263
|
|
|
1,229
|
|
|
(31.3)
|
%
|
Masterbatch
Solutions
|
|
178,451
|
|
|
179,572
|
|
|
(1,121)
|
|
|
(34.0)
|
%
|
|
177,860
|
|
|
161,807
|
|
|
16,053
|
|
|
(27.1)
|
%
|
Engineered
Plastics
|
|
172,830
|
|
|
183,040
|
|
|
(10,210)
|
|
|
(37.4)
|
%
|
|
118,781
|
|
|
114,695
|
|
|
4,086
|
|
|
(32.9)
|
%
|
Specialty
Powders
|
|
69,233
|
|
|
79,864
|
|
|
(10,631)
|
|
|
(43.5)
|
%
|
|
87,510
|
|
|
91,500
|
|
|
(3,990)
|
|
|
(36.9)
|
%
|
Distribution
Services
|
|
78,515
|
|
|
100,267
|
|
|
(21,752)
|
|
|
(49.0)
|
%
|
|
116,334
|
|
|
117,379
|
|
|
(1,045)
|
|
|
(38.6)
|
%
|
Total
Consolidated
|
|
$
|
542,295
|
|
|
$
|
588,508
|
|
|
$
|
(46,213)
|
|
|
(39.4)
|
%
|
|
516,977
|
|
|
500,644
|
|
|
16,333
|
|
|
(33.0)
|
%
|
|
|
Net
Sales
|
|
Pounds
Sold
|
|
|
Six months ended
February 28,
|
Consolidated
|
|
2015
|
|
2014
|
|
$
Change
|
|
%
Change
|
|
2015
|
|
2014
|
|
Lbs.
Change
|
|
%
Change
|
|
|
(In thousands, except
for %'s)
|
Custom Performance
Color
|
|
$
|
91,344
|
|
|
$
|
90,706
|
|
|
$
|
638
|
|
|
(16.7)
|
%
|
|
34,242
|
|
|
30,731
|
|
|
3,511
|
|
|
(8.1)
|
%
|
Masterbatch
Solutions
|
|
380,481
|
|
|
362,476
|
|
|
18,005
|
|
|
(11.6)
|
%
|
|
367,186
|
|
|
327,218
|
|
|
39,968
|
|
|
(6.1)
|
%
|
Engineered
Plastics
|
|
367,346
|
|
|
363,738
|
|
|
3,608
|
|
|
(15.0)
|
%
|
|
246,144
|
|
|
229,037
|
|
|
17,107
|
|
|
(10.8)
|
%
|
Specialty
Powders
|
|
151,590
|
|
|
166,811
|
|
|
(15,221)
|
|
|
(23.6)
|
%
|
|
187,612
|
|
|
193,581
|
|
|
(5,969)
|
|
|
(18.4)
|
%
|
Distribution
Services
|
|
166,587
|
|
|
190,174
|
|
|
(23,587)
|
|
|
(26.8)
|
%
|
|
226,389
|
|
|
222,793
|
|
|
3,596
|
|
|
(18.3)
|
%
|
Total
Consolidated
|
|
$
|
1,157,348
|
|
|
$
|
1,173,905
|
|
|
$
|
(16,557)
|
|
|
(17.2)
|
%
|
|
1,061,573
|
|
|
1,003,360
|
|
|
58,213
|
|
|
(12.3)
|
%
|
A. SCHULMAN,
INC.
|
SUPPLEMENTAL
SEGMENT INFORMATION
|
(continued)
|
|
|
|
|
|
|
|
Three months ended
February 28,
|
|
Six months ended
February 28,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
Unaudited
(In thousands, except
for %'s)
|
Segment gross
profit
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
44,507
|
|
|
$
|
47,499
|
|
|
$
|
94,213
|
|
|
$
|
99,439
|
|
USCAN
|
|
19,745
|
|
|
13,370
|
|
|
44,374
|
|
|
27,120
|
|
LATAM
|
|
7,101
|
|
|
7,856
|
|
|
12,751
|
|
|
15,539
|
|
APAC
|
|
7,382
|
|
|
6,527
|
|
|
14,632
|
|
|
13,150
|
|
Total segment gross
profit
|
|
78,735
|
|
|
75,252
|
|
|
165,970
|
|
|
155,248
|
|
Inventory
step-up
|
|
—
|
|
|
(782)
|
|
|
(341)
|
|
|
(1,199)
|
|
Accelerated
depreciation, restructuring and related costs
|
|
(596)
|
|
|
(137)
|
|
|
(596)
|
|
|
(608)
|
|
Costs related to
acquisitions and integrations
|
|
(65)
|
|
|
(34)
|
|
|
(115)
|
|
|
(34)
|
|
Total gross
profit
|
|
$
|
78,074
|
|
|
$
|
74,299
|
|
|
$
|
164,918
|
|
|
$
|
153,407
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
16,277
|
|
|
$
|
17,553
|
|
|
$
|
36,316
|
|
|
$
|
37,972
|
|
USCAN
|
|
5,925
|
|
|
2,839
|
|
|
17,317
|
|
|
6,699
|
|
LATAM
|
|
2,281
|
|
|
3,430
|
|
|
2,877
|
|
|
6,933
|
|
APAC
|
|
3,423
|
|
|
3,176
|
|
|
6,931
|
|
|
6,542
|
|
Total segment
operating income
|
|
27,906
|
|
|
26,998
|
|
|
63,441
|
|
|
58,146
|
|
Corporate
|
|
(9,006)
|
|
|
(7,714)
|
|
|
(16,490)
|
|
|
(14,397)
|
|
Costs related to
acquisitions and integrations
|
|
(3,337)
|
|
|
(1,851)
|
|
|
(4,389)
|
|
|
(2,487)
|
|
Restructuring and
related costs
|
|
(3,779)
|
|
|
(2,792)
|
|
|
(9,359)
|
|
|
(6,164)
|
|
CEO transition
costs
|
|
(6,167)
|
|
|
—
|
|
|
(6,167)
|
|
|
—
|
|
Asset
impairment
|
|
—
|
|
|
(104)
|
|
|
—
|
|
|
(104)
|
|
Accelerated
depreciation
|
|
(298)
|
|
|
—
|
|
|
(298)
|
|
|
(108)
|
|
Inventory
step-up
|
|
—
|
|
|
(782)
|
|
|
(341)
|
|
|
(1,199)
|
|
Operating
income
|
|
5,319
|
|
|
13,755
|
|
|
26,397
|
|
|
33,687
|
|
Interest expense,
net
|
|
(2,245)
|
|
|
(2,407)
|
|
|
(4,509)
|
|
|
(4,536)
|
|
Foreign currency
transaction gains (losses)
|
|
(1,141)
|
|
|
(1,466)
|
|
|
(2,240)
|
|
|
(2,148)
|
|
Other income
(expense), net
|
|
245
|
|
|
193
|
|
|
404
|
|
|
271
|
|
Gain on early
extinguishment of debt
|
|
1,290
|
|
|
—
|
|
|
1,290
|
|
|
—
|
|
Income from
continuing operations before taxes
|
|
$
|
3,468
|
|
|
$
|
10,075
|
|
|
$
|
21,342
|
|
|
$
|
27,274
|
|
|
|
|
|
|
|
|
|
|
Capacity
utilization
|
|
|
|
|
|
|
|
|
EMEA
|
|
74
|
%
|
|
77
|
%
|
|
81
|
%
|
|
82
|
%
|
USCAN
|
|
60
|
%
|
|
56
|
%
|
|
63
|
%
|
|
60
|
%
|
LATAM
|
|
64
|
%
|
|
74
|
%
|
|
68
|
%
|
|
80
|
%
|
APAC
|
|
62
|
%
|
|
72
|
%
|
|
64
|
%
|
|
70
|
%
|
Worldwide
|
|
67
|
%
|
|
69
|
%
|
|
71
|
%
|
|
73
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/a-schulman-reports-strong-operational-performance-in-fiscal-2015-second-quarter-300061516.html
SOURCE A. Schulman, Inc.