ST. LOUIS, Oct. 27, 2009 (GLOBE NEWSWIRE) -- Thermadyne Holdings Corporation (Nasdaq:THMD) today reported results for the three and nine months ended September 30, 2009.
OVERVIEW
Periods ended September 30,
---------------------------
Three months Nine months
------------ -----------
Inc Inc
($ millions except (Dcr) (Dcr)
EPS) 2009 2008 vs 2008 2009 2008 vs 2008
------- ------- ------- ------- ------- -------
Net sales $89.5 $139.4 (35.8%) $257.6 $412.3 (37.5%)
Net income -
continuing operations $5.0 $3.0 $2.0 $3.1 $14.0 ($10.9)
Earnings per diluted
share - continuing
operations $0.37 $0.22 $0.15 $0.23 $1.04 ($0.81)
Cash provided (used) by
operating activities $9.0 ($4.6) $13.6 $31.0 $15.4 $15.6
Financial Review for the Third Quarter Ended September 30, 2009
Net sales in the third quarter of 2009 were $89.5 million, a decrease of approximately 36% as compared to the third quarter of 2008. Excluding the impact of foreign currency translations, net sales decreased 34% across both domestic and international markets.
Gross margin, as a percentage of net sales, was 32.2% in the third quarter of 2009 compared to 31.5% of net sales in the prior year third quarter. Excluding the effects of the LIFO inventory accounting method, gross margin was 30.2% and 31.8% in the third quarter of 2009 and 2008, respectively. This decline of 1.6 percentage points, excluding LIFO effects, results primarily from the impact of the manufacturing cost inefficiencies resulting from the reduced production volumes in 2009 versus 2008. The third quarter 2009 gross margin, excluding LIFO effects, of 30.2% increased 2.3 percentage points, from 27.9% for the second quarter of 2009 primarily due to the impact on cost of sales of reduced raw material costs. Production volumes in the third quarter of 2009 were comparable to the second quarter of 2009.
Selling, general and administrative (SG&A) costs were $22.0 million, or 24.5% of net sales, and $30.3 million, or 21.7% of net sales, in the third quarter of 2008. The 2009 third quarter SG&A costs includes severance charges of $1.4 million associated with manufacturing personnel notified of permanent lay-off status, eliminations of salaried personnel in connection with further organizational restructurings, and additional personnel electing to participate in an early retirement program. In addition, the 2009 third quarter SG&A expenses included a $1.0 million charge for customs duties assessed by a foreign jurisdiction related to prior years. Excluding the net $2.4 million in one-time charges, the SG&A costs were 21.9% and 21.7% of net sales for the quarters ending September 30, 2009 and 2008, respectively.
Interest costs were $5.6 million and $5.1 million in the third quarter of 2009 and 2008, respectively. This increase of $0.5 million results from increases in borrowings and in higher interest rates charged under the Second Lien Agreement. In addition, the Special Interest adjustment applicable to the Company's $175 million Senior Subordinated Notes was 1.25% in the 2009 third quarter, compared to 0.75% in 2008. The Special Interest adjustment remains at 1.25% through December 31, 2009 and increases to 2.25% for the first quarter of 2010.
During the quarter, the Company terminated commitments to provide future supplemental medical benefits for retirees. Accordingly, the Company reduced its recorded liabilities and recognized a $7.2 million settlement gain.
The effective income tax rate was 34.4% in the third quarter of 2009 as compared to 59.4% for the prior year third quarter. The reduction in the effective tax rate in 2009 is primarily due to an adoption of a new accounting principle. This change allows the Company to recognize the benefits of its net operating loss carryovers in offsetting U.S. income tax expense related to current year income. As in prior years, the Company continues to record deferred U.S. income tax expenses on certain foreign earnings, in addition to the foreign taxes payable currently on those earnings.
For the three months ended September 30, 2009, net income was $6.1 million, or $0.45 per diluted share, compared to net income of $2.7 million, or $0.20 per diluted share, for the third quarter of 2008.
For the three months ended September 30, 2009, net income from continuing operations was $5.0 million, or $0.37 per diluted share, compared to $3.0 million, or $0.22 per diluted share, for the third quarter of 2008. Discontinued operations reflected a net gain of $1.1 million, or $0.08 per diluted share, for the three months ended September 30, 2009, as compared to a loss of $0.3 million, or $0.02 per share, for the three months ended September 30, 2008. The net gain in the third quarter of 2009 resulted from the sale of the Company's remaining facilities in Brazil with an offsetting net charge for foreign currency adjustments of unresolved Brazilian tax liabilities.
Financial Review of Continuing Operations for Nine Months Ended September 30, 2009
Net sales for the nine months ended September 30, 2009, were $257.6 million, a decrease of approximately 38% from net sales of $412.3 million in first nine months of 2008. Excluding the impact of foreign currency translations, net sales decreased 33%.
For the nine months ended September 30, 2009, gross margin was 29.2% of net sales, as compared to 32.3% of net sales for same period in 2008. Excluding LIFO effects, gross margin was 27.6% and 32.8% in the nine months ending September 30, 2009, and 2008, respectively. This decrease in the 2009 gross margin percentage, excluding LIFO effects, reflects the manufacturing cost inefficiencies arising from reduced production volumes and higher raw material costs, particularly during the first three months of 2009.
SG&A expenses were $59.7 million, or 23.2% of net sales, and $87.4 million, or 21.2% of net sales, for the nine months ended September 30, 2009, and 2008, respectively. The SG&A expenses for the nine months included $2.7 million of charges for amounts payable to employees in conjunction with staff reduction programs in the 2009 third quarter and first quarter. In addition, the third quarter of 2009 includes a charge of $1.0 million for customs duties assessed by a foreign jurisdiction due to the Company's lack of compliance in prior years. Excluding these unusual charges, SG&A expenses were 21.7% of sales in 2009 compared to 21.2% in 2008.
Interest costs were $15.1 million and $15.8 million during the nine-month periods ended September 30, 2009 and 2008, respectively. The decline in interest expense reflects the combined effect of a decline in the average indebtedness for 2009 as compared to 2008 and the effective interest rate for the first six months of 2009 was less than in 2008.
The effective income tax rate was 36.5% for the nine months ended September 30, 2009 as compared to 48.4% for the prior year nine month period. The difference in effective tax rates is primarily due to the 2009 change in accounting principles described previously.
Net income, for the 2009 nine-month period, was $6.2 million, or $0.45 per diluted share, compared to net income of $13.2 million, or $0.98 per diluted share for the 2008 comparable period.
For the 2009 nine-month period, net income from continuing operations was $3.1 million, or $0.23 per diluted share, as compared to net income from continuing operations of $14.0 million, or $1.04 per diluted share, for the same period of 2008. Discontinued operations recognized a gain of $3.1 million, or $0.22 per diluted share, for the nine months ended September 30, 2009 and net loss of $0.8 million, or $0.06 per share, for the nine months ended 2008. During the nine months ended September 30, 2009, a net gain of $1.2 million was recognized primarily related to the sale of the remaining property in Brazil and a gain of $1.9 million was recognized from the settlement of amounts due to the Company in connection with the May 2007 sale of its South African businesses.
Cash Flows From Operating Activities and Liquidity
Operating activities provided $9.0 million of cash in the third quarter of 2009 primarily from reduced inventories. For the 2009 nine month period, operating activities provided $31.0 million of cash primarily from collections of customer receivables and reduced inventories. The September 2009 inventory level has improved from 4.2 months supply at June 30, 2009 as a result of the continuing efforts to rebalance inventory following the reduction in sales volumes. Inventory levels represented approximately 3.8 months supply at September 30, 2009, as compared to approximately 3.4 months in September 30, 2008.
On August 14, 2009, the Company amended its Second Lien Facility extending the maturity of the facility from November 2010 to November 2012, and increasing the indebtedness to $25 million from $14 million. The effective interest rate is 15% and increases if LIBOR exceeds 6%. This is intended to provide funding for planned manufacturing equipment purchases and anticipated expansion of certain foreign operations.
As of September 30, 2009, combined cash and availability under the Company's Working Capital Facility was $66 million. The Company's indebtedness, net of cash, declined $31.8 million to $190.3 million at September 30, 2009, from $222.1 million at December 31, 2008.
Operating EBITDA, As Adjusted
"Operating EBITDA, as adjusted," from continuing operations was $9.0 million, or 10.1% of net sales in the third quarter of 2009, compared to $17.0 million, or 12.2% of net sales in the third quarter of 2008. Excluding the non-recurring customs duty charge related to prior years, Operating EBITDA, as adjusted, was $10.0 million, or 11.2% of net sales, in the third quarter of 2009.
Outlook
Paul Melnuk, Thermadyne's Chairman, stated, "We are pleased with our performance in this difficult environment. Our current sales pace reflects continued solid demand in Asia Pacific markets together with slight increases in sales in the U.S. and export sales to the Middle East and Canada. For the fourth quarter, we expect continued improvement in our operating results and further inventory reductions."
Mr. Melnuk continued, "Despite the macro-economic uncertainties for 2010, we see considerable potential to further enhance the value of our business. We anticipate ongoing cost savings through our TCP process, increasing cash flows from improving inventory management, and further new product introductions. This combination will continue to strengthen both our balance sheet and our position in the market place."
Use of Non-GAAP Measures
Our discussions of operations include reference to "Operating EBITDA, as adjusted." While a non-GAAP measure, management believes this measure enhances the reader's understanding of underlying and continuing operating results in the periods presented. The Company defines "Operating EBITDA, as adjusted," as earnings before interest, taxes, depreciation, amortization, LIFO adjustments, stock-based compensation expense, minority interest, post-retirement benefit expense in excess of cash payments and the nonrecurring items of severance accruals and restructuring costs. The presentation of "Operating EBITDA, as adjusted" facilitates the reader's ability to compare current period results to other periods by isolating certain unusual items of income or expense, such as those detailed in an attached schedule. "Operating EBITDA, as adjusted," for certain unusual items is reflective of management measurements which focus on operating spending levels and efficiencies and less on the non-cash and unusual items believed to be nonrecurring. Additionally, non-GAAP measures such as "Operating EBITDA" and "Operating EBITDA, as adjusted," are commonly used to value the business by investors and lenders.
A schedule is attached which reconciles Net Income (Loss) as shown in the Consolidated Statements of Operations to "Operating EBITDA" and "Operating EBITDA, as adjusted."
Non-GAAP measurements such as "Operating EBITDA" and "Operating EBITDA, as adjusted" are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. Use of "Operating EBITDA" and "Operating EBITDA, as adjusted," has material limitations, and therefore management provides reconciliation for the reader, of "Operating EBITDA" and "Operating EBITDA, as adjusted," to Net Income.
The financial statement information presented in accordance with generally-accepted accounting principles (GAAP) and the non-GAAP measure have not been reviewed by an independent, registered public accounting firm.
Conference Call
Thermadyne will hold a teleconference on Wednesday, October 28, 2009, at 11:00 a.m. Eastern.
To participate via telephone, please dial:
* U.S. and Canada: 1-800-857-9861 (Conference ID THERMADYNE) * International 1-312-470-7286
Those wishing to participate are asked to dial in ten minutes before the conference begins. For those unable to participate in the live conference call, a recording of the conference will be available from October 28, 2009, at 12:59 p.m. Eastern until November 3, 2009, at 11:59 p.m. Eastern by dialing U.S. and Canada (866) 358-4519; International 1-203-369-0135. Enter conference ID 3031 to listen to the recording.
About Thermadyne
Thermadyne, headquartered in St. Louis, Missouri, is a leading global manufacturer and marketer of metal cutting and welding products and accessories under a variety of leading premium brand names including Victor(R), Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R), Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R). Its common shares trade on the NASDAQ under the symbol THMD. For more information about Thermadyne, its products and services, visit the Company's web site at www.Thermadyne.com.
The Thermadyne Holdings Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4937
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company's operating results. These risks and factors are set forth in documents the Company files with the Securities and Exchange Commission, specifically in the Company's most recent Annual Report on Form 10-K and other reports it files from time to time.
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In thousands, except share data)
UNAUDITED
Schedule 1
Condensed Consolidated Statements of Operations
Three Months Ended September 30,
--------------------------------------
2009 % of Sales 2008 % of Sales
-------- -------- -------- --------
Net sales $ 89,501 100.0% $139,373 100.0%
Cost of goods sold 60,706 67.8% 95,477 68.5%
-------- -------- -------- --------
Gross margin 28,795 32.2% 43,896 31.5%
Selling, general and
administrative expenses
(including $3,000 of severance
charges in 2009) 21,968 24.5% 30,294 21.7%
Amortization of intangibles 673 0.8% 669 0.5%
Net periodic postretirement
benefits (217) (0.2)% 52 0.0%
-------- -------- -------- --------
Operating income 6,371 7.1% 12,881 9.2%
Other income (expenses):
Interest (5,577) (6.2)% (5,137) (3.7)%
Amortization of deferred
financing costs (276) (0.3)% (235) (0.2)%
Settlement of retiree medical
obligations 7,150 8.0% -- 0.0%
Other -- 0.0% (28) (0.0)%
-------- -------- -------- --------
Income from continuing
operations before income tax
provision and discontinued
operations 7,668 8.6% 7,481 5.4%
Income tax provision 2,639 2.9% 4,443 3.2%
-------- -------- -------- --------
Net income from continuing
operations 5,029 5.6% 3,038 2.2%
Income (loss) from discontinued
operations, net of tax 1,118 1.2% (320) (0.2)%
-------- -------- -------- --------
Net income $ 6,147 6.9% $ 2,718 2.0%
======== ======== ======== ========
Basic net income (loss)
per share :
Continuing operations $ 0.37 $ 0.22
Discontinued operations 0.09 (0.02)
-------- --------
Net income $ 0.46 $ 0.20
======== ========
Diluted net income (loss)
per share :
Continuing operations $ 0.37 $ 0.22
Discontinued operations 0.08 (0.02)
-------- --------
Net income $ 0.45 $ 0.20
======== ========
Nine Months Ended September 30,
--------------------------------------
2009 % of Sales 2008 % of Sales
-------- -------- -------- --------
Net sales $257,617 100.0% $412,275 100.0%
Cost of goods sold 182,517 70.8% 278,933 67.7%
-------- -------- -------- --------
Gross margin 75,100 29.2% 133,342 32.3%
Selling, general and
administrative expenses
(including $3,000 of severance
charges in 2009) 59,669 23.2% 87,419 21.2%
Amortization of intangibles 2,016 0.8% 2,005 0.5%
Net periodic postretirement
benefits (208) (0.1)% 156 0.0%
-------- -------- -------- --------
Operating income 13,623 5.3% 43,762 10.6%
Other income (expenses):
Interest (15,121) (5.9)% (15,794) (3.8)%
Amortization of deferred
financing costs (749) (0.3)% (703) (0.2)%
Settlement of retiree medical
obligations 7,150 2.8% -- 0.0%
Other -- 0.0% (149) (0.0)%
-------- -------- -------- --------
Income from continuing
operations before income tax
provision and discontinued
operations 4,903 1.9% 27,116 6.6%
Income tax provision 1,788 0.7% 13,116 3.2%
-------- -------- -------- --------
Net income from continuing
operations 3,115 1.2% 14,000 3.4%
Income (loss) from discontinued
operations, net of tax 3,051 1.2% (795) (0.2)%
-------- -------- -------- --------
Net income $ 6,166 2.4% $ 13,205 3.2%
======== ======== ======== ========
Basic net income (loss)
per share :
Continuing operations $ 0.23 $ 1.04
Discontinued operations 0.23 (0.06)
-------- --------
Net income $ 0.46 $ 0.98
======== ========
Diluted net income (loss)
per share :
Continuing operations $ 0.23 $ 1.04
Discontinued operations 0.22 (0.06)
-------- --------
Net income $ 0.45 $ 0.98
======== ========
The financial statement presentations reflect the reclassification of
the Company's discontinued operations
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In thousands)
UNAUDITED
Schedule 2
Condensed Consolidated Cash Flow Data
Three Months Ended Nine Months Ended
------------------ ------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
-------- -------- -------- --------
Cashflows from continuing
operations
Cash flows from operating
activities:
Net income $ 6,147 $ 2,718 $ 6,166 $ 13,205
Adjustments to reconcile net
income to net cash used in
operating activities:
(Income) loss from
discontinued operations (1,118) 320 (3,051) 795
Depreciation and
amortization 3,398 3,066 9,601 9,346
Deferred income taxes 1,623 3,414 (270) 7,898
Net Periodic
post-retirement benefits (7,367) 52 (7,358) 156
-------- -------- -------- --------
2,683 9,570 5,088 31,400
-------- -------- -------- --------
Changes in operating assets
and liabilities:
Accounts receivable 564 (1,934) 18,598 (9,969)
Inventories 6,913 (13,548) 28,774 (18,699)
Prepaids (396) (430) 887 (1,235)
Accounts payable (63) 2,005 (9,872) 13,785
Accrued and other
liabilities 2,738 5,024 (6,350) 6,250
Accrued interest (4,111) (4,227) (3,416) (4,989)
Accrued taxes 1,001 (505) (1,936) (248)
Other long-term liabilities (283) (633) (796) (1,017)
Other, net -- 28 -- 149
-------- -------- -------- --------
6,363 (14,220) 25,889 (15,973)
-------- -------- -------- --------
Net cash provided by (used
in) operating activities 9,046 (4,650) 30,977 15,427
-------- -------- -------- --------
Cash flows from investing
activities:
Capital expenditures (653) (3,493) (4,626) (8,125)
Proceeds from sales of assets -- -- -- 500
Purchase of outside interest
in joint venture -- -- -- (3,013)
Other, net (111) (43) (245) (391)
-------- -------- -------- --------
Net cash provided by (used
in) investing activities (764) (3,536) (4,871) (11,029)
-------- -------- -------- --------
Cash flows from financing
activities:
Borrowings under Working
Capital Facility (0) 8,316 8,923 24,461
Repayments of Working
Capital Facility (12,066) 2,866 (41,454) (8,750)
Borrowings under Second-Lien
Facility and other 25,000 -- 25,075 --
Repayments of Second-Lien
Facility and other (16,395) (140) (16,630) (22,829)
Advances to discontinued
operations 465 (260) 2,398 (3,322)
Termination payment from
derivative counterparty 2,313 --
Other, net (135) 1,746 (1,339) 3,498
-------- -------- -------- --------
Net cash provided by (used
in) financing activities (3,131) 12,528 (20,714) (6,942)
-------- -------- -------- --------
Effect of exchange rate
changes on cash and cash
equivalents 647 (1,078) 1,552 116
-------- -------- -------- --------
Net cash provided by (used
in) continuing operations $ 5,798 $ 3,264 $ 6,944 $ (2,428)
======== ======== ======== ========
Cash flows from discontinued
operations
-------- -------- -------- --------
Net cash provided by (used in)
discontinued operation $ (217) $ 226 $ (585) $ (49)
======== ======== ======== ========
Total increase (decrease) in
cash and cash equivalents $ 5,581 $ 3,490 $ 6,359 $ (2,477)
Total cash and cash equivalents
beginning of period (including
cash of discontinued
operations) 13,279 10,468 12,501 16,435
-------- -------- -------- --------
Total cash and cash equivalents
end of period (including cash
of discontinued operations) $ 18,860 $ 13,958 $ 18,860 $ 13,958
======== ======== ======== ========
The financial statement presentations reflect the reclassification of
the Company's discontinued operations
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In thousands)
Schedule 3
Sept. 30, Dec. 31,
2009 2008
-------- --------
UNAUDITED
ASSETS
Cash and cash equivalents $ 18,860 $ 11,916
Accounts receivable, net 57,018 72,044
Inventories 77,476 102,479
Prepaid expenses and other 5,440 5,443
Deferred tax assets 2,277 2,277
Assets held for sale -- 916
-------- --------
Total current assets 161,071 195,075
Property, plant and equipment, net 46,716 47,501
Goodwill 187,503 184,043
Intangibles, net 59,012 60,783
Other assets 4,045 6,967
-------- --------
Total assets $458,347 $494,369
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Working capital facility $ -- $ 32,531
Current maturities of long-term obligations 2,678 2,060
Accounts payable 21,596 30,823
Accrued and other liabilities 27,071 28,295
Accrued interest 3,142 6,558
Income taxes payable 1,310 2,849
Deferred tax liabilities 3,253 3,253
Liabilities applicable to assets held for sale -- 5,266
-------- --------
Total current liabilities 59,050 111,635
Long-term obligations, less current maturities 206,518 199,454
Deferred tax liabilities 51,416 47,292
Other long-term liabilities 13,503 17,685
Total shareholders' equity 127,860 118,303
-------- --------
Total liabilities and shareholders' equity $458,347 $494,369
======== ========
Long-term Obligations Sept. 30, Dec. 31,
2009 2008
-------- --------
Working Capital Facility $ -- $ 32,531
Second-Lien Facility 25,000 14,000
Issuance discount on Second-Lien Facility (1,844) --
Senior Subordinated Notes, due February 1, 2014,
9 1/4% interest payable semiannually on
February 1 and August 1 175,000 175,000
Capital leases and other 11,040 12,514
-------- --------
209,196 234,045
Current maturities and working capital facility (2,678) (34,591)
-------- --------
$206,518 $199,454
======== ========
The financial statement presentations reflect the reclassification
of the Company's discontinued operations
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In thousands)
Schedule 4
Working Capital Efficiency Information
2009 2008
---------------------------- ------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
-------- -------- -------- -------- --------
Accounts receivable,
net $ 57,018 $ 56,287 $ 60,457 $ 72,044 $ 93,842
Inventories 77,476 83,170 89,493 102,479 109,539
Accounts payable (21,596) (21,365) (22,182) (30,823) (47,857)
-------- -------- -------- -------- --------
$112,898 $118,092 $127,768 $143,700 $155,524
======== ======== ======== ======== ========
% Annualized Sales 31.5% 34.8% 38.3% 34.3% 27.9%
DSO 57.3 59.7 65.3 62.0 60.6
Inventory Turns 3.13 2.88 2.77 3.08 3.49
DPO 32.0 32.1 32.2 35.1 45.1
Calculation Notes
---------------------
% Annualized Sales = Net amount compared to annualized quarterly
sales
DSO = Accounts receivable compared to related quarterly sales divided
by 90
Inventory Turns = Quarterly cost of sales annualized divided by
inventory
DPO = Accounts payable compared to related quarterly cost of sales
divided by 90
The financial statement presentations reflect the reclassification of
the Company's discontinued operations
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In millions)
Schedule 5
Reconciliations of Net Income (Loss) from continuing operations to
Operating EBITDA (1) and Operating EBITDA, as adjusted
Three Months Ended
September 30,
------------------
2009 2008
-------- --------
Net income (loss) from continuing operations $ 5.0 $ 3.0
Plus:
Depreciation and amortization including deferred
financing fees 3.4 3.1
Interest expense 5.6 5.1
Interest income on contingent payment -- --
Net periodic postretirement benefits in excess
of cash payments (7.4) --
LIFO (1.8) 0.4
Minority interest -- --
Severance accrual 1.4 0.2
Stock compensation expense 0.2 0.8
Provision for income taxes 2.6 4.4
-------- --------
Operating EBITDA, as adjusted, from continuing
operations (1) $ 9.0 $ 17.0
Percentage of Net Sales 10.1% 12.2%
EBITDA from discontinued operations 1.1 (0.3)
-------- --------
Operating EBITDA, as adjusted (1) $ 10.1 $ 16.7
======== ========
Nine Months Ended
September 30,
------------------
2009 2008
-------- --------
Net income from continuing operations $ 3.1 $ 14.0
Plus:
Depreciation and amortization including deferred
financing fees 9.6 9.3
Interest expense 15.1 15.7
Interest income on contingent payment (0.5) --
Net periodic postretirement benefits in excess of
cash payments (7.5) --
LIFO (4.1) 2.0
Minority interest -- 0.2
Severance accrual 3.0 0.2
Stock compensation expense (0.5) 1.6
Provision for income taxes 1.8 13.1
-------- --------
Operating EBITDA, as adjusted, from continuing
operations (1) $ 20.0 $ 56.1
Percentage of Net Sales 7.8% 13.6%
EBITDA from discontinued operations 3.0 (0.7)
-------- --------
Operating EBITDA, as adjusted (1) $ 23.0 $ 55.4
======== ========
(1) A Non-GAAP measure
The financial statement presentations reflect the reclassification of
the Company's discontinued operations