CSW Industrials Reports Fiscal Third Quarter 2017
Post# of 301275
Highlights
- Third quarter 2017 net revenue of $75.5 million, up 6.5% compared to $70.9 million in the prior year period.
- Third quarter 2017 GAAP operating income of $3.4 million; Non-GAAP operating income of $6.6 million.
- Third quarter 2017 GAAP net earnings of $405 thousand, or $0.03 per diluted share; Non-GAAP net earnings of $4.2 million, or $0.26 per diluted share.
- Company continues restructuring & realignment initiatives targeting annualized savings of approximately $7.5 million in addition to annualized savings of approximately $2.0 to $2.5 million expected from procurement initiatives.
DALLAS, Feb. 13, 2017 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NASDAQ: CSWI ), a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments: Industrial Products; Coatings, Sealants & Adhesives; and Specialty Chemicals, today reported results for the third fiscal quarter ended December 31, 2016.
Net revenue for the fiscal third quarter of 2017 was $75.5 million, compared to the prior year period of $70.9 million. Organic growth was 6.2%, while inorganic growth was 0.3%. The increase in net revenue was primarily attributable to increases in the construction and HVAC markets, partially offset by decreases in the rail and energy markets.
Net income in the fiscal third quarter of 2017 was $405 thousand, or $0.03 per diluted share, compared to $2.0 million, or $0.13 per diluted share, in the prior year period. Adjusted to exclude one-time expenses and applying a normalized tax rate, adjusted net income in the third quarter of fiscal 2017 was up 9.9% to $4.2 million, or $0.26 per diluted share, compared to $3.8 million, or $0.24 per diluted share, in the prior year period.
Joseph B. Armes, CSW Industrials’ Chief Executive Officer, commented, “We were pleased to see strong growth in our architecturally specified building products resulting from market penetration of smoke curtains and growth in our HVAC and plumbing markets. While our Specialty Chemicals and Coatings, Sealants and Adhesives segments continue to work through challenging end markets, we remain focused on revenue diversification initiatives to broaden end market penetration. Additionally, we continue to make good progress optimizing those businesses to increase profitability through our restructuring and realignment initiatives, and when combined with our global procurement initiatives, we expect these efforts to yield significant annualized savings.”
Third Quarter Results of Operations Industrial Products segment revenue increased 11.3% during the quarter to $31.7 million, compared to the prior year level of $28.5 million. The increase in revenue was the result of higher sales volume from strength in the construction market that increased demand for our products. Higher demand in the HVAC market also contributed to increased sales volumes and were partially offset by decreased demand for rail lubrication applicators. Industrial Products segment operating income was $4.0 million, compared to the prior year level of $3.4 million. Adjusted to exclude one-time expenses, Industrial Products segment adjusted operating income increased to $4.3 million in the third quarter of fiscal 2017 compared to $3.4 million in the prior year period.
Coatings, Sealants and Adhesives (CS&A) segment revenue decreased 1.9% to $23.8 million, compared to the prior year level of $24.3 million. Lower revenue was mainly attributable to decreased sales volumes in the rail end market, partially offset by increased demand in plumbing sealants. Segment operating income in the third quarter of 2017 was $0.8 million, compared to operating income of $4.2 million in the prior year period. The decrease was attributable to unfavorable absorption on lower sales, CS&A restructuring costs ($0.5 million), and inefficiencies due to the restructuring process that impacted the third quarter of 2017 and the reversal of the liability for the earn-out related to the Strathmore acquisition ($2.0 million) recorded during December 2015 that did not recur. These factors were partially offset by transaction costs from the Deacon acquisition ($0.3 million) recorded during December 2015 that did not recur. Adjusted to exclude one-time expenses, CS&A segment adjusted operating income decreased to $1.4 million compared to $2.5 million in the prior year period.
Specialty Chemicals segment revenue increased 10.0% to $19.9 million, compared to the prior year of $18.1 million. Higher sales were attributable to working down the backlog of Whitmore / Jet Lube orders created by integration challenges in the second quarter of fiscal 2017, as well as acquisition-related revenues. Segment operating income in the third quarter of fiscal 2017 was $541 thousand, compared to the prior year level of $1.7 million, resulting from realignment costs related to the Whitmore / Jet Lube integration ($2.1 million), including duplicate labor and overhead, additional freight, and costs attributable to the disposal of inventory, partially offset by transaction costs from the Leak Freeze acquisition ($0.5 million) recorded during December 2015 that did not recur. Adjusted to exclude one-time expenses, Specialty Chemicals segment adjusted operating income increased to $2.8 million compared to $2.2 million in the prior year period.
Consolidated gross profit in the third quarter of fiscal 2017 was $28.9 million, a 10.0% decrease compared to the prior year of $32.1 million. Gross margin as a percentage of sales decreased to 38.3%, compared to 45.3% in the prior year. The decline was due to an unfavorable sales mix shift and reduced absorption of fixed manufacturing costs in products sold into the rail and energy markets. Additionally, and as previously disclosed, the decrease was driven by restructuring and realignment costs incurred related to optimizing our manufacturing footprint as part of the Company’s efforts to achieve approximately $7.5 million in annual restructuring savings.
Consolidated operating expenses decreased to $25.5 million, or 33.8% of sales, compared to the prior year level of $26.5 million, or 37.4% of sales. The decrease was attributable to organizational and start-up costs incurred in connection with the Share Distribution ($2.1 million) and transaction costs from the Deacon and Leak Freeze acquisitions ($0.8 million) recorded in the prior year period that did not recur. These costs were mostly offset by the Strathmore acquisition earn-out liability reversal ($2.0 million) recorded in the prior year period that did not recur and current period restructuring and realignment costs ($0.5 million).
Consolidated operating income was $3.4 million, or 4.5% of sales, compared with $5.6 million, or 7.9% of sales, in the prior year. The lower operating income was primarily attributable to a $3.3 million decrease in gross profit partially offset by the $1.0 million decrease in operating expenses, as discussed above.
Consolidated net income for the third quarter was $405 thousand, or $0.03 per diluted share, compared with net income of $2.0 million in the prior year period. Our effective tax rate in the quarter was 87.7%, due to the recognition of discrete items tied to the provision versus actual returns filed for fiscal 2016. Adjusted for one-time items and applying a normalized tax rate, adjusted net income was $4.2 million, or $0.26 per diluted share, compared to adjusted net income of $3.8 million, or $0.24 per diluted share, in the prior year.
Conference Call Information
The company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question and answer session for the investment community. A live webcast of the call can be accessed at ir.cswindustrials.com. To access the call, participants may dial toll-free at 1-877-407-0784 or 1-201-689-8560 (international) and request to join the CSW Industrials earnings call.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 (international) and enter confirmation code 13654535. The telephonic replay will be available beginning at 1:00 p.m. ET on Monday, February 13, 2017, and will last through 11:59 p.m. ET on Monday, February 27, 2017. The call will also be available for replay via the webcast link on CSW Industrials’ Investor Relations website.
Safe Harbor Statement This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.
The forward-looking statements included in this press release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.
Non-GAAP Financial Measures This press release includes an analysis of adjusted earnings per share, adjusted net income, and adjusted operating income, which are non-GAAP financial measures of performance. For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these Non-GAAP measures useful, see the “Reconciliation of Non-GAAP Measures” section of this release.
About CSW Industrials CSWI is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments: Industrial Products; Coatings, Sealants & Adhesives; and Specialty Chemicals. CSWI's broad portfolio of leading products provides performance optimizing solutions to its customers. CSWI's products include mechanical products for heating, ventilation and air conditioning ("HVAC") and refrigeration applications, coatings and sealants and high performance specialty lubricants. Markets that CSWI serves include: HVAC, industrial, rail, plumbing, architecturally-specified building products, energy, mining and general industrial markets.
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Revenues, net | $ | 75,496 | $ | 70,918 | $ | 239,735 | $ | 243,572 | ||||||||
| Cost of revenues | (46,598 | ) | (38,769 | ) | (136,971 | ) | (130,135 | ) | ||||||||
| Gross profit | 28,898 | 32,149 | 102,764 | 113,437 | ||||||||||||
| Selling, general and administrative expenses | (25,504 | ) | (26,526 | ) | (81,109 | ) | (72,747 | ) | ||||||||
| Impairment expenses | (13 | ) | - | (3,896 | ) | - | ||||||||||
| Operating income | 3,381 | 5,623 | 17,759 | 40,690 | ||||||||||||
| Interest expense, net | (673 | ) | (793 | ) | (2,163 | ) | (2,292 | ) | ||||||||
| Other income (expense), net | 583 | (7 | ) | 1,875 | (185 | ) | ||||||||||
| Income before income taxes | 3,291 | 4,823 | 17,471 | 38,213 | ||||||||||||
| Provision for income taxes | (2,886 | ) | (2,825 | ) | (9,128 | ) | (14,602 | ) | ||||||||
| Net income | $ | 405 | $ | 1,998 | $ | 8,343 | $ | 23,611 | ||||||||
| Net earnings per common share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | 0.13 | $ | 0.53 | $ | 1.51 | ||||||||
| Diluted | 0.03 | 0.13 | 0.53 | 1.51 | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net income | $ | 405 | $ | 1,998 | $ | 8,343 | $ | 23,611 | ||||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Foreign currency translation adjustments | (1,534 | ) | (847 | ) | (3,466 | ) | (2,064 | ) | ||||||||
| Cash flow hedging activity, net of taxes of | ||||||||||||||||
| $(420), $(156), $(383) and $(272), respectively | 779 | 290 | 712 | 505 | ||||||||||||
| Pension and other postretirement effects, | ||||||||||||||||
| net of taxes of $(1), $(3), $(5) and $(2,614), respectively | 2 | 7 | 10 | 4,855 | ||||||||||||
| Other comprehensive (loss) income | (753 | ) | (550 | ) | (2,744 | ) | 3,296 | |||||||||
| Comprehensive income | $ | (348 | ) | $ | 1,448 | $ | 5,599 | $ | 26,907 | |||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| December 31, | March 31, | |||||||
| 2016 | 2016 | |||||||
| (in thousands, except per share amounts) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 20,414 | $ | 25,987 | ||||
| Bank time deposits | 1,753 | 13,278 | ||||||
| Accounts receivable, net of allowance of $1,202 and $1,208, respectively | 49,758 | 52,637 | ||||||
| Inventories, net | 53,080 | 51,634 | ||||||
| Prepaid expenses and other current assets | 13,133 | 11,985 | ||||||
| Total current assets | 138,138 | 155,521 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $61,327 | ||||||||
| and $59,035, respectively | 62,996 | 64,357 | ||||||
| Goodwill | 67,147 | 67,757 | ||||||
| Intangible assets, net | 80,418 | 88,727 | ||||||
| Other assets | 16,078 | 15,898 | ||||||
| Total assets | $ | 364,777 | $ | 392,260 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 12,664 | $ | 9,912 | ||||
| Accrued and other current liabilities | 23,617 | 21,090 | ||||||
| Current portion of long-term debt | 561 | 561 | ||||||
| Total current liabilities | 36,842 | 31,563 | ||||||
| Long-term debt | 46,286 | 89,121 | ||||||
| Retirement benefits payable | 1,300 | 1,746 | ||||||
| Other long-term liabilities | 11,705 | 11,820 | ||||||
| Total liabilities | 96,133 | 134,250 | ||||||
| Equity: | ||||||||
| Common shares, $0.01 par value | 157 | 156 | ||||||
| Shares authorized – 50,000 | ||||||||
| Shares issued – 15,661 and 15,659, respectively | ||||||||
| Preferred shares, $0.01 par value | - | - | ||||||
| Shares authorized – 10,000 | ||||||||
| Shares issued – 0 | ||||||||
| Additional paid-in capital | 37,603 | 31,597 | ||||||
| Treasury shares, at cost | (972 | ) | - | |||||
| Retained earnings | 242,298 | 233,955 | ||||||
| Accumulated other comprehensive loss | (10,442 | ) | (7,698 | ) | ||||
| Total equity | 268,644 | 258,010 | ||||||
| Total liabilities and equity | $ | 364,777 | $ | 392,260 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Nine Months Ended | ||||||||
| December 31, | ||||||||
| 2016 | 2015 | |||||||
| (in thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 8,343 | $ | 23,611 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 6,146 | 5,042 | ||||||
| Amortization of intangible and other assets | 5,879 | 4,896 | ||||||
| Provision for inventory reserves | 1,309 | - | ||||||
| Share-based and other executive compensation | 3,837 | 1,398 | ||||||
| Acquisition-related non-cash gain | (376 | ) | (1,950 | ) | ||||
| Net loss (gain) on sales of property, plant and equipment | 30 | 33 | ||||||
| Pension plan curtailment benefit | - | (8,020 | ) | |||||
| Net pension (benefit) expense | (843 | ) | - | |||||
| Impairment of assets | 3,896 | - | ||||||
| Net deferred taxes | (2,700 | ) | 4,361 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 2,842 | 9,612 | ||||||
| Inventories | (2,941 | ) | 1,484 | |||||
| Prepaid expenses and other current assets | (1,378 | ) | (446 | ) | ||||
| Other assets | (157 | ) | (89 | ) | ||||
| Accounts payable and other current liabilities | 5,693 | (411 | ) | |||||
| Retirement benefits payable and other liabilities | 3,094 | (1,039 | ) | |||||
| Net cash provided by operating activities | 32,674 | 38,482 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (6,965 | ) | (6,024 | ) | ||||
| Proceeds from sale of assets held for investment | 97 | - | ||||||
| Proceeds from sale of assets | 193 | 20 | ||||||
| Net change in bank time deposits | 11,442 | 5,805 | ||||||
| Cash paid for acquisitions | - | (97,732 | ) | |||||
| Net cash provided by (used in) investing activities | 4,767 | (97,931 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings on lines of credit | - | 174,040 | ||||||
| Repayments of lines of credit | (42,835 | ) | (94,421 | ) | ||||
| Payments of deferred loan costs | - | (1,073 | ) | |||||
| Purchase of treasury shares | (972 | ) | - | |||||
| Cash contribution from Capital Southwest | - | 13,000 | ||||||
| Proceeds from stock option activity | 2,169 | - | ||||||
| Dividends paid to Capital Southwest | - | (300 | ) | |||||
| Net cash (used in) provided by financing activities | (41,638 | ) | 91,246 | |||||
| Effect of exchange rate changes on cash and equivalents | (1,376 | ) | (1,193 | ) | ||||
| Net change in cash and cash equivalents | (5,573 | ) | 30,604 | |||||
| Cash and cash equivalents, beginning of period | 25,987 | 20,448 | ||||||
| Cash and cash equivalents, end of period | $ | 20,414 | $ | 51,052 | ||||
Reconciliation of Non-GAAP Measures
| Reconciliation of Operating Income to Adjusted Operating Income | ||||||||||||||
| (unaudited) | ||||||||||||||
| (in thousands) | For the Three Months Ended December 31, | For the Nine Months Ended December 31, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| GAAP Operating Income | $ | 3,381 | $ | 5,623 | $ | 17,759 | $ | 40,690 | ||||||
| Adjusting items: | ||||||||||||||
| Pension gain | - | - | - | (8,020 | ) | |||||||||
| Restructuring & realignment | 2,573 | - | 4,707 | - | ||||||||||
| Asset Impairment | 124 | - | 3,014 | - | ||||||||||
| Estimated reserve for excess inventory | - | - | 719 | - | ||||||||||
| Transaction costs | - | (1,122 | ) | - | 1,641 | |||||||||
| Spin related costs | - | 2,145 | - | 3,046 | ||||||||||
| Consulting projects | 482 | - | 1,394 | - | ||||||||||
| CFO Transition | - | - | 2,872 | - | ||||||||||
| Adjusted Operating Income | $ | 6,560 | $ | 6,646 | $ | 30,465 | $ | 37,357 | ||||||
| Reconciliation of Net Income to Adjusted Net Income | |||||||||||||||
| (unaudited) | |||||||||||||||
| (in thousands, except share data) | For the Three Months Ended December 31, | For the Nine Months Ended December 31, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| GAAP Net Income | $ | 405 | $ | 1,998 | $ | 8,343 | $ | 23,611 | |||||||
| Adjusting items, net of tax: | |||||||||||||||
| Pension gain | - | - | - | (5,213 | ) | ||||||||||
| Restructuring & realignment | 1,665 | - | 3,139 | - | |||||||||||
| Asset Impairment | 80 | - | 1,959 | - | |||||||||||
| Estimated reserve for excess inventory | - | - | 467 | - | |||||||||||
| Transaction costs | - | (726 | ) | - | 1,062 | ||||||||||
| Spin related costs | - | 1,388 | - | 1,971 | |||||||||||
| Consulting projects | 312 | - | 906 | - | |||||||||||
| CFO Transition | - | - | 1,867 | - | |||||||||||
| Discrete Tax Provisions | 1,725 | 1,150 | 3,073 | - | |||||||||||
| Adjusted Net Income | $ | 4,187 | $ | 3,810 | $ | 19,754 | $ | 21,431 | |||||||
| GAAP Diluted income per common share | $ | 0.03 | $ | 0.13 | $ | 0.53 | $ | 1.51 | |||||||
| Adjusting items, per diluted common share: | |||||||||||||||
| Pension gain | - | - | - | (0.33 | ) | ||||||||||
| Restructuring & realignment | 0.10 | - | 0.20 | - | |||||||||||
| Asset Impairment | 0.01 | - | 0.12 | - | |||||||||||
| Estimated reserve for excess inventory | - | - | 0.03 | - | |||||||||||
| Transaction costs | - | (0.05 | ) | - | 0.07 | ||||||||||
| Spin related costs | - | 0.09 | - | 0.12 | |||||||||||
| Consulting projects | 0.02 | - | 0.06 | - | |||||||||||
| CFO Transition | - | - | 0.12 | - | |||||||||||
| Discrete Tax Provisions | 0.10 | 0.07 | 0.19 | - | |||||||||||
| Adjusted earnings per diluted common share | $ | 0.26 | $ | 0.24 | $ | 1.25 | $ | 1.37 | |||||||
| Weighted-average shares outstanding (in thousands) | |||||||||||||||
| Diluted | 15,894 | 15,741 | 15,812 | 15,688 | |||||||||||
| Reconciliation of Segment Operating Income to Adjusted Segment Operating Income | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
| Industrial Products | Coatings, Sealants & Adhesives | Specialty Chemicals | Corporate and Other | Consolidated | Industrial Products | Coatings, Sealants & Adhesives | Specialty Chemicals | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Revenue | $ | 31,715 | $ | 23,847 | $ | 19,890 | $ | 44 | $ | 75,496 | $ | 28,498 | $ | 24,301 | $ | 18,075 | $ | 44 | $ | 70,918 | |||||||||||||||||||||
| Operating Income | $ | 3,978 | $ | 813 | $ | 541 | $ | (1,951 | ) | $ | 3,381 | $ | 3,422 | $ | 4,172 | $ | 1,735 | $ | (3,706 | ) | $ | 5,623 | |||||||||||||||||||
| Adjusting items: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring & realignment | - | 427 | 2,146 | - | 2,573 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Asset Impairment | 124 | - | - | - | 124 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Transaction costs | - | - | - | - | - | - | (1,630 | ) | 508 | - | (1,122 | ) | |||||||||||||||||||||||||||||
| Spin related costs | - | - | - | - | - | - | - | - | 2,145 | 2,145 | |||||||||||||||||||||||||||||||
| Consulting projects | 191 | 119 | 119 | 53 | 482 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 4,293 | $ | 1,359 | $ | 2,806 | $ | (1,898 | ) | $ | 6,560 | $ | 3,422 | $ | 2,542 | $ | 2,243 | $ | (1,561 | ) | $ | 6,646 | |||||||||||||||||||
| % of revenue | 13.5 | % | 5.7 | % | 14.1 | % | 8.7 | % | 12.0 | % | 10.5 | % | 12.4 | % | 9.4 | % | |||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | For the Nine Months Ended December 31, 2016 | For the Nine Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
| Industrial Products | Coatings, Sealants & Adhesives | Specialty Chemicals | Corporate and Other | Consolidated | Industrial Products | Coatings, Sealants & Adhesives | Specialty Chemicals | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Revenue | $ | 117,048 | $ | 70,218 | $ | 52,380 | $ | 89 | $ | 239,735 | $ | 104,660 | $ | 80,721 | $ | 58,009 | $ | 182 | $ | 243,572 | |||||||||||||||||||||
| Operating Income | $ | 24,482 | $ | 910 | $ | 2,829 | $ | (10,462 | ) | $ | 17,759 | $ | 24,786 | $ | 10,974 | $ | 9,422 | $ | (4,492 | ) | $ | 40,690 | |||||||||||||||||||
| Adjusting items: | |||||||||||||||||||||||||||||||||||||||||
| Pension gain | - | - | - | - | - | (3,179 | ) | (1,418 | ) | (3,423 | ) | - | (8,020 | ) | |||||||||||||||||||||||||||
| Restructuring & realignment | - | 1,956 | 2,751 | - | 4,707 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Asset Impairment | 214 | 2,800 | - | - | 3,014 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Estimated reserve for excess inventory | 17 | 279 | 423 | - | 719 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Transaction costs | - | - | - | - | - | - | 1,133 | 508 | - | 1,641 | |||||||||||||||||||||||||||||||
| Spin related costs | - | - | - | - | - | - | - | - | 3,046 | 3,046 | |||||||||||||||||||||||||||||||
| Consulting projects | 275 | 264 | 201 | 654 | 1,394 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| CFO Transition | - | - | - | 2,872 | 2,872 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 24,988 | $ | 6,209 | $ | 6,204 | $ | (6,936 | ) | $ | 30,465 | $ | 21,607 | $ | 10,689 | $ | 6,507 | $ | (1,446 | ) | $ | 37,357 | |||||||||||||||||||
| % of revenue | 21.3 | % | 8.8 | % | 11.8 | % | 12.7 | % | 20.6 | % | 13.2 | % | 11.2 | % | 15.3 | % | |||||||||||||||||||||||||
We use adjusted earnings per share, adjusted net income and adjusted operating income, together with financial measures prepared in accordance with GAAP, such as revenue, income from operations, operating expense, operating income and net income, to asses our historical and prospective operating performance and to enhance our understanding of our core operating performance. We also believe these measures are useful for investors to assess the operating performance of our business without the effect of non-operating items.
Investor contact: Michael Callahan, ICR (203) 682-8311 Michael.Callahan@icrinc.com
(0)
(0)