LYDALL, INC. (NYSE:LDL) today announced financial results for the
third quarter ended September 30, 2017.
HIGHLIGHTS - Q3 2017 vs. Q3
2016
GAAP Financials
- Net sales of $180.0 million, up $24.3 million, or 15.6%, from
$155.7 million • Technical Nonwovens' Gutsche
acquisition contributed $13.9 million, or 8.9%
- Gross margin of 22.2%, down 230 basis points
- Operating margin of 8.4%, down 330 basis points
- Earnings per share ("EPS") of $0.62, down 17.3%, from
$0.75
Non-GAAP Financial
Measures*
- Organic sales growth of 2.8%
- Adjusted gross margin of 22.4%, down 320 basis points
- Adjusted operating margin of 9.4%, down 370 basis points
- Adjusted EPS of $0.61, down 29.1%, from adjusted $0.86 per
share
- Adjusted EBITDA margin of 12.9%, down 390 basis
points*Reconciliations of the Non-GAAP financial measures to
Lydall’s GAAP financial results are included at the end of this
release. See also “Use of Non-GAAP Financial Measures”
below.
Dale G. Barnhart, President and Chief Executive
Officer, stated, “Lydall delivered over 15% sales growth in the
quarter, primarily driven by the Gutsche acquisition.
Moreover, we delivered healthy organic sales growth of 2.8%, led by
robust organic gains in the Technical Nonwovens segment and
continued above-market volume growth in our automotive
segments. As expected, adjusted gross margin declined in the
third quarter of 2017. Price reductions of approximately 100
basis points, along with unfavorable mix, increased commodity costs
and increased labor and overhead expenses each negatively impacted
gross margin by approximately 70 basis points compared to the
strong performance in the third quarter of 2016.
“We are making good progress executing on our
Technical Nonwovens' integration activities and Thermal Acoustical
Solutions consolidation, both of which will position us better to
serve our customers and improve our cost structure. Also, I
am pleased with our strong cash generation during the quarter which
has allowed us to pay down an additional $14 million on our
domestic credit facility."
Q3 2017 Results
Net sales increased by $24.3 million, or 15.6%,
to $180.0 million, compared to $155.7 million in the third quarter
of 2016. The Technical Nonwovens ("TNW") segment reported
increased net sales of $21.0 million, including $13.9 million from
the Gutsche acquisition that occurred on December 31, 2016.
TNW’s organic sales growth was 11.7%, led by advanced materials
sales and improving filtration demand globally. In the
Thermal/Acoustical Metals ("T/A Metals") segment, organic sales
growth was 1.7% from growth internationally. The Performance
Materials ("PM") segment reported organic sales growth of 0.7% due
to improved filtration demand, net of a 1.9% reduction from product
termination buys realized in the third quarter of 2016. In
the Thermal/Acoustical Fibers ("T/A Fibers") segment, increased
volume was offset by lower customer pricing, including
approximately 1.5% of adjustments from part design changes,
resulting in an organic sales decline of 0.9% in the third quarter
of 2017. Global automotive tooling net sales increased $3.4
million, or 2.2%, in advance of new platform launches, primarily in
the T/A Metals segment. Foreign currency translation
increased net sales by $2.6 million, or 1.7%, in the third quarter
of 2017.
Gross margin was 22.2%, compared to 24.5% in the
third quarter of 2016, with the reduction principally driven by the
T/A Metals segment, and to a lesser extent the T/A Fibers
segment. Adjusted gross margin was 22.4%, down 320 basis
points from the prior year. The T/A Metals segment negatively
impacted consolidated gross margin by 190 basis points primarily
due to increased raw material commodity costs, reduced customer
pricing, and unfavorable mix associated with both increased tooling
sales and the absence of high margin prototype part sales
recognized in the third quarter of 2016. Also, to a lesser
extent, operational inefficiencies contributed to lower gross
margin for T/A Metals in the current quarter compared to the third
quarter of 2016. The T/A Fibers segment negatively impacted
the consolidated gross margin comparison in the third quarter by 50
basis points primarily due to reduced customer pricing. The
TNW segment reported marginal gross margin improvement in the third
quarter as a result of lower inventory step-up expenses of $1.5
million, but on an adjusted basis, reported lower gross margin due
to unfavorable mix. Gross margin performance in the PM
segment was essentially flat in the third quarter of 2017 compared
to the same quarter a year ago with material productivity
offsetting unfavorable mix.
Operating margin was 8.4%, down 330 basis points
with the third quarter of 2016. Lower gross margin as noted
above contributed to 230 basis points of the change, coupled with
increased selling, product development and administrative expenses
of $4.9 million, or 100 basis points. Operating margin in the
third quarter of 2017 included $1.4 million, or 80 basis points, of
expenses associated with both the previously announced combination
of the T/A Metals and T/A Fibers segments and the on-going TNW
segment restructuring program. Finally, expenses increased by
$0.9 million from higher consulting expenses in support of organic
growth initiatives in the third quarter of 2017, which reduced
operating margin by 50 basis points. Adjusted operating
margin was 9.4%, including the add-back of expenses for TNW
acquisition-related inventory step-up, Thermal Acoustical Solutions
(“TAS”) consolidation, TNW restructuring and corporate strategic
initiatives expenses, compared to 13.1% in the third quarter of
2016.
The Company's effective tax rate was 24.2%
compared to 29.7% in the third quarter of 2016. The effective
tax rate in the third quarter of 2017 was positively impacted by a
net tax benefit of $1.4 million from the completion of a tax
audit.
Net income was $10.7 million, or $0.62 per
diluted share, compared to $12.8 million, or $0.75 per diluted
share in the third quarter of 2016. Adjusted earnings per
share was $0.61, compared to a record $0.86 per share in the third
quarter of 2016.
Liquidity
Cash flows from operations in the first nine
months of 2017 were $46.2 million compared with $47.4 million in
the first nine months of 2016, as improved cash from net income was
offset by increases in working capital, including tooling inventory
in advance of new platform launches and timing of tax
payments. Cash was $64.7 million at September 30, 2017, net
of $34.0 million paid down on the Company’s domestic credit
facility during 2017, leaving availability of $78.4 million on the
facility at September 30, 2017.
Outlook
Mr. Barnhart concluded, “Looking forward to the
remainder of 2017, we continue to see demand as generally stable in
our markets across all segments, and we expect organic growth to be
consistent with the third quarter of 2017. We also expect
gross margin to be in a range consistent with the third quarter of
2017 and the final quarter of 2016. We remain focused on
executing the Technical Nonwovens' integration plan that is
expected to reduce operating costs and increase efficiency, and the
TAS consolidation, an initiative that is expected to deliver
approximately $2.0 million of run-rate cost savings. We
expect to report TAS as a single consolidated segment effective
January 1, 2018. Last, from a liquidity standpoint, we have
ample capacity to support organic growth programs, fund capital
investments and pursue attractive acquisitions that will drive
profitable growth."
Conference Call
Lydall will host a conference call on November
1, 2017, at 10:00 a.m. Eastern Time to discuss results for its
third quarter ended September 30, 2017 as well as general matters
related to its businesses and markets. The call may be
accessed at (888) 338-7142, from within the U.S., or (412)
902-4181, internationally. In addition, the audio of the call
will be webcast live and will be available for replay on the
Company's website at www.lydall.com in the Investor Relations'
Section. A recording of the call will be available from 12:00
p.m. Eastern Time on November 1, 2017 through 11:59 p.m. Eastern
Time, November 8, 2017 at (877) 344-7529, from within the U.S., or
(412) 317-0088, internationally, pass code 10113492.
Additional information, including a presentation outlining key
financial data supporting the conference call, can be found on the
Company’s website www.lydall.com under the Investors Relations’
Section.
Use of Non-GAAP Financial
Measures
In addition to the financial measures prepared
in accordance with generally accepted accounting principles
(“GAAP”), the Company uses certain non-GAAP financial measures,
including organic sales, adjusted gross profit, adjusted gross
margin, adjusted operating income, adjusted operating margin,
adjusted earnings per share, EBITDA and adjusted EBITDA. The
attached financial tables address the non-GAAP measures used in
this press release and reconcile non-GAAP measures to the most
directly comparable GAAP measures. The Company believes that
the use of non-GAAP measures helps investors gain a better
understanding of our core operating results and future prospects,
consistent with how management measures and forecasts the Company's
performance, especially when comparing such results to previous
periods or forecasts. Non-GAAP measures should be considered
in addition to, and not as a replacement for or superior to, the
corresponding GAAP measures, and may not be comparable to similarly
titled measures reported by other companies.
Cautionary Note Concerning
Forward-Looking Statements
This press release contains “forward-looking
statements” within the Private Securities Litigation Reform Act of
1995. Any statements contained in this press release that are
not statements of historical fact, including statements about the
outlook for the remainder of 2017 and into 2018, may be deemed to
be forward-looking statements. All such forward-looking
statements are intended to provide management’s current
expectations for the future operating and financial performance of
the Company based on current expectations and assumptions relating
to the Company’s business, the economy and other future
conditions. Forward-looking statements generally can be
identified through the use of words such as “believes,”
“anticipates,” “may,” “should,” “will,” “plans,” “projects,”
“expects,” “expectations,” “estimates,” “forecasts,” “predicts,”
“targets,” “prospects,” “strategy,” “signs,” and other words of
similar meaning in connection with the discussion of future
operating or financial performance. Because forward-looking
statements relate to the future, they are subject to inherent
risks, uncertainties and changes in circumstances that are
difficult to predict. Such risks and uncertainties which
include, among others, worldwide economic or political changes that
affect the markets that the Company’s businesses serve which could
have an effect on demand for the Company’s products and impact the
Company’s profitability, challenges encountered by the Company in
the integration of the Texel and Gutsche acquisitions, including
execution of restructuring programs, challenges encountered in
combining the T/A Fibers and T/A Metals segments, disruptions in
the global credit and financial markets, including diminished
liquidity and credit availability, changes in international trade
agreements, including tariffs and trade restrictions, foreign
currency volatility, swings in consumer confidence and spending,
unstable economic growth, raw material pricing and supply issues,
fluctuations in unemployment rates, retention of key employees,
increases in fuel prices, and outcomes of legal proceedings, claims
and investigations. Accordingly, the Company’s actual results
may differ materially from those contemplated by these
forward-looking statements. Investors, therefore, are
cautioned against relying on any of these forward-looking
statements. They are neither statements of historical fact
nor guarantees or assurances of future performance.
Additional information regarding the factors that may cause actual
results to differ materially from these forward-looking statements
is available in Lydall’s filings with the Securities and Exchange
Commission, including the risks and uncertainties identified in
Part I, Item 1A - Risk Factors of Lydall’s Annual Report on Form
10-K for the year ended December 31, 2016.
These forward-looking statements speak only as
of the date of this press release, and Lydall does not assume any
obligation to update or revise any forward-looking statement made
in this press release or that may from time to time be made by or
on behalf of the Company.
Lydall, Inc. is a New York Stock Exchange listed
company, headquartered in Manchester, Connecticut with global
manufacturing operations producing specialty engineered products
for the thermal/acoustical and filtration/separation markets. For
more information, visit http://www.lydall.com. Lydall® is a
registered trademark of Lydall, Inc. in the U.S. and other
countries.
|
For further
information: |
Brendan Moynihan |
Vice President,
Financial Planning and Analysis and Investor Relations |
Telephone
860-646-1233 |
Facsimile
860-646-4917 |
info@lydall.com |
www.lydall.com |
|
Summary of
Operations |
|
|
|
|
|
|
|
In thousands except per
share data |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net
sales |
$ |
180,041 |
|
|
$ |
155,725 |
|
|
$ |
520,407 |
|
|
$ |
422,660 |
|
Cost of sales |
140,061 |
|
|
117,532 |
|
|
396,750 |
|
|
316,100 |
|
Gross profit |
39,980 |
|
|
38,193 |
|
|
123,657 |
|
|
106,560 |
|
|
|
|
|
|
|
|
|
Selling, product
development and administrative expenses |
24,819 |
|
|
19,896 |
|
|
73,697 |
|
|
59,062 |
|
Operating income |
15,161 |
|
|
18,297 |
|
|
49,960 |
|
|
47,498 |
|
|
|
|
|
|
|
|
|
Interest expense |
705 |
|
|
389 |
|
|
2,106 |
|
|
643 |
|
Other expense (income),
net |
408 |
|
|
(218 |
) |
|
1,147 |
|
|
(884 |
) |
Income before income
taxes |
14,048 |
|
|
18,126 |
|
|
46,707 |
|
|
47,739 |
|
|
|
|
|
|
|
|
|
Income tax expense |
3,404 |
|
|
5,392 |
|
|
11,201 |
|
|
15,023 |
|
(Income) loss from
equity method investment |
(31 |
) |
|
(51 |
) |
|
$ |
37 |
|
|
$ |
(51 |
) |
Net
income |
$ |
10,675 |
|
|
$ |
12,785 |
|
|
35,469 |
|
|
32,767 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.63 |
|
|
$ |
0.76 |
|
|
$ |
2.08 |
|
|
$ |
1.94 |
|
Diluted |
$ |
0.62 |
|
|
$ |
0.75 |
|
|
$ |
2.05 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
17,055 |
|
|
16,888 |
|
|
17,028 |
|
|
16,859 |
|
Weighted average number
of common shares and equivalents outstanding |
17,267 |
|
|
17,138 |
|
|
17,270 |
|
|
17,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Segment Information |
|
|
|
|
|
|
|
|
|
and Corporate
Office Expenses |
|
|
|
|
|
|
|
|
|
In thousands |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Net
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Materials
Segment |
|
$ |
29,547 |
|
|
$ |
28,831 |
|
|
$ |
87,599 |
|
|
$ |
85,180 |
|
|
Technical Nonwovens
Segment (1) |
|
73,306 |
|
|
52,284 |
|
|
199,322 |
|
|
111,331 |
|
|
Thermal/Acoustical
Metals Segment |
|
49,819 |
|
|
44,637 |
|
|
137,484 |
|
|
131,879 |
|
|
Thermal/Acoustical
Fibers Segment |
|
35,623 |
|
|
36,429 |
|
|
120,494 |
|
|
112,458 |
|
|
Eliminations and Other
(1) |
|
(8,254 |
) |
|
(6,456 |
) |
|
(24,492 |
) |
|
(18,188 |
) |
|
Consolidated Net
Sales |
|
$ |
180,041 |
|
|
$ |
155,725 |
|
|
$ |
520,407 |
|
|
$ |
422,660 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Materials
Segment |
|
$ |
3,063 |
|
|
$ |
3,283 |
|
|
$ |
8,516 |
|
|
$ |
10,102 |
|
|
Technical Nonwovens
Segment |
|
8,589 |
|
|
5,662 |
|
|
19,792 |
|
|
12,807 |
|
|
Thermal/Acoustical
Metals Segment |
|
1,836 |
|
|
5,451 |
|
|
7,453 |
|
|
13,090 |
|
|
Thermal/Acoustical
Fibers Segment |
|
8,716 |
|
|
10,026 |
|
|
33,162 |
|
|
30,980 |
|
|
Corporate Office
Expenses |
|
(7,043 |
) |
|
(6,125 |
) |
|
(18,963 |
) |
|
(19,481 |
) |
|
Consolidated Operating
Income |
|
$ |
15,161 |
|
|
$ |
18,297 |
|
|
$ |
49,960 |
|
|
$ |
47,498 |
|
|
(1) |
Included in the Technical Nonwovens segment and Eliminations
and Other is $6.5 million and $4.5 million in intercompany sales to
the T/A Fibers segment for the quarters ended September 30,
2017 and 2016, respectively, and $19.5 million and $13.6 million
for the nine months ended September 30, 2017 and 2016,
respectively. |
|
Financial
Position |
|
|
|
|
In thousands except
ratio data |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
September 30, 2017 |
|
December 31, 2016 |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
64,706 |
|
|
$ |
71,934 |
|
Working capital |
|
$ |
176,704 |
|
|
$ |
165,162 |
|
Total debt |
|
$ |
93,250 |
|
|
$ |
128,775 |
|
Stockholders'
equity |
|
$ |
334,336 |
|
|
$ |
273,456 |
|
Total
capitalization |
|
$ |
427,586 |
|
|
$ |
402,231 |
|
Total debt to total
capitalization |
|
21.8 |
% |
|
32.0 |
% |
|
|
|
|
|
|
|
Cash
Flows |
|
|
|
|
|
|
|
|
In thousands |
|
Quarter Ended |
|
Nine Months Ended |
(Unaudited) |
|
September 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
18,397 |
|
|
$ |
14,015 |
|
|
$ |
46,192 |
|
|
$ |
47,422 |
|
Net cash used for
investing activities |
|
$ |
(4,832 |
) |
|
$ |
(104,582 |
) |
|
$ |
(20,253 |
) |
|
$ |
(120,131 |
) |
Net cash (used for)
provided by financing activities |
|
$ |
(14,107 |
) |
|
$ |
85,085 |
|
|
$ |
(37,857 |
) |
|
$ |
74,482 |
|
Depreciation and
amortization |
|
$ |
6,608 |
|
|
$ |
5,430 |
|
|
$ |
19,386 |
|
|
$ |
14,064 |
|
Capital
expenditures |
|
$ |
(4,850 |
) |
|
$ |
(3,483 |
) |
|
$ |
(19,918 |
) |
|
$ |
(19,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
Data |
|
|
|
|
|
|
Quarter Ended September 30, |
|
|
2017 |
|
2016 |
|
|
|
|
|
High |
|
$ |
58.65 |
|
|
$ |
53.30 |
|
Low |
|
$ |
45.45 |
|
|
$ |
37.96 |
|
Close |
|
$ |
57.30 |
|
|
$ |
51.13 |
|
|
|
|
|
|
|
|
|
|
During the
third quarter of 2017, 4,130,003 shares of Lydall common stock
(LDL) were traded on the New York Stock Exchange. |
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
In
thousands except ratio and per share data |
(Unaudited) |
|
|
|
|
|
The
following tables address the non-GAAP measures used in this press
release and reconcile the non-GAAP measures to the most directly
comparable GAAP measures: |
|
|
|
|
|
|
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
180,041 |
|
|
$ |
155,725 |
|
|
$ |
520,407 |
|
|
$ |
422,660 |
|
|
|
|
|
|
|
|
|
|
Gross Profit,
as reported |
|
$ |
39,980 |
|
|
$ |
38,193 |
|
|
$ |
123,657 |
|
|
$ |
106,560 |
|
Inventory
step-up purchase accounting adjustments |
|
83 |
|
|
1,607 |
|
|
1,108 |
|
|
1,607 |
|
Automotive segments consolidation expenses |
|
121 |
|
|
— |
|
|
121 |
|
|
— |
|
Severance
expenses |
|
— |
|
|
— |
|
|
459 |
|
|
— |
|
TNW
restructuring expenses |
|
166 |
|
|
— |
|
|
240 |
|
|
— |
|
Gross Profit,
adjusted |
|
$ |
40,350 |
|
|
$ |
39,800 |
|
|
$ |
125,585 |
|
|
$ |
108,167 |
|
|
|
|
|
|
|
|
|
|
Gross Margin,
as reported |
|
22.2 |
% |
|
24.5 |
% |
|
23.8 |
% |
|
25.2 |
% |
Gross Margin,
adjusted |
|
22.4 |
% |
|
25.6 |
% |
|
24.1 |
% |
|
25.6 |
% |
|
|
|
|
|
|
|
|
|
Operating
income, as reported |
|
$ |
15,161 |
|
|
$ |
18,297 |
|
|
$ |
49,960 |
|
|
$ |
47,498 |
|
Strategic
initiatives expenses |
|
326 |
|
|
537 |
|
|
471 |
|
|
2,645 |
|
Inventory
step-up purchase accounting adjustments |
|
83 |
|
|
1,607 |
|
|
1,108 |
|
|
1,607 |
|
Automotive segments consolidation expenses |
|
1,197 |
|
|
— |
|
|
1,197 |
|
|
— |
|
Severance
expenses |
|
— |
|
|
— |
|
|
987 |
|
|
— |
|
TNW
restructuring expenses |
|
154 |
|
|
— |
|
|
447 |
|
|
— |
|
Operating
income, adjusted |
|
$ |
16,921 |
|
|
$ |
20,441 |
|
|
$ |
54,170 |
|
|
$ |
51,750 |
|
|
|
|
|
|
|
|
|
|
Operating
margin, as reported |
|
8.4 |
% |
|
11.7 |
% |
|
9.6 |
% |
|
11.2 |
% |
Operating
margin, adjusted |
|
9.4 |
% |
|
13.1 |
% |
|
10.4 |
% |
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
Diluted
earnings per share, reported |
|
$ |
0.62 |
|
|
$ |
0.75 |
|
|
$ |
2.05 |
|
|
$ |
1.92 |
|
Strategic
initiatives expenses |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.15 |
|
Inventory
step-up purchase accounting adjustments |
|
$ |
— |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
0.09 |
|
Severance
expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.06 |
|
|
$ |
— |
|
TNW
restructuring expenses |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.02 |
|
|
$ |
— |
|
Automotive segments consolidation expenses |
|
$ |
0.07 |
|
|
$ |
— |
|
|
$ |
0.07 |
|
|
$ |
— |
|
Tax
effect of above adjustments |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
Discrete
tax adjustments |
|
$ |
(0.08 |
) |
|
$ |
0.03 |
|
|
$ |
(0.08 |
) |
|
$ |
0.03 |
|
Diluted
earnings per share, adjusted |
|
$ |
0.61 |
|
|
$ |
0.86 |
|
|
$ |
2.14 |
|
|
$ |
2.11 |
|
|
This press release reports adjusted results for the quarters
and nine months ended September 30, 2017 and 2016, which excludes
strategic initiatives expenses, purchase accounting adjustments
related to inventory step-up in the Technical Nonwovens segment,
expenses associated with the planned combination of the T/A Metals
and T/A Fibers segments, severance expenses for reductions in force
in the Thermal/Acoustical Metals and Technical Nonwovens segments,
restructuring expenses in the Technical Nonwovens segment and
discrete tax adjustments. |
|
EBITDA |
In
thousands except ratio data |
(Unaudited) |
|
|
|
|
|
For the Quarters Ended September
30, |
|
|
2017 |
|
% of sales |
|
2016 |
|
% of sales |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,675 |
|
|
|
|
$ |
12,785 |
|
|
|
Interest expense |
|
705 |
|
|
|
|
389 |
|
|
|
Income tax expense |
|
3,404 |
|
|
|
|
5,392 |
|
|
|
Depreciation and
amortization |
|
6,608 |
|
|
|
|
5,430 |
|
|
|
EBITDA |
|
$ |
21,392 |
|
|
11.9 |
% |
|
$ |
23,996 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
Strategic
initiatives expenses |
|
326 |
|
|
|
|
537 |
|
|
|
Inventory
step-up purchase accounting adjustments |
|
83 |
|
|
|
|
1,607 |
|
|
|
Automotive segments consolidation expenses |
|
1,197 |
|
|
|
|
— |
|
|
|
TNW
restructuring expenses |
|
154 |
|
|
|
|
— |
|
|
|
EBITDA,
adjusted |
|
$ |
23,152 |
|
|
12.9 |
% |
|
$ |
26,140 |
|
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September
30, |
|
|
2017 |
|
% of sales |
|
2016 |
|
% of sales |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
35,469 |
|
|
|
|
$ |
32,767 |
|
|
|
Interest expense |
|
2,106 |
|
|
|
|
643 |
|
|
|
Income tax expense |
|
11,201 |
|
|
|
|
15,023 |
|
|
|
Depreciation and
amortization |
|
19,386 |
|
|
|
|
14,064 |
|
|
|
EBITDA |
|
$ |
68,162 |
|
|
13.1 |
% |
|
$ |
62,497 |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
Strategic
initiatives expenses |
|
471 |
|
|
|
|
2,645 |
|
|
|
Inventory
step-up purchase accounting adjustments |
|
1,108 |
|
|
|
|
1,607 |
|
|
|
Automotive segments consolidation expenses |
|
1,197 |
|
|
|
|
— |
|
|
|
Severance
expenses |
|
987 |
|
|
|
|
— |
|
|
|
TNW
restructuring expenses |
|
447 |
|
|
|
|
— |
|
|
|
EBITDA,
adjusted |
|
$ |
72,372 |
|
|
13.9 |
% |
|
$ |
66,749 |
|
|
15.8 |
% |
|
This press
release reports earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the quarters and nine months ended
September 30, 2017 and 2016 and adjusted EBITDA which excludes
strategic initiatives expenses, purchase accounting
adjustments related to inventory step-up in the Technical Nonwovens
segment, expenses associated with the planned combination of the
T/A Metals and T/A Fibers segments, severance expenses for
reductions in force in the Thermal/Acoustical Metals and Technical
Nonwovens segments and restructuring expenses in the Technical
Nonwovens segment. |
|
Organic Sales |
(Unaudited) |
|
|
|
|
|
Quarter Ended September 30, 2017 |
|
|
Performance Materials |
|
Technical Nonwovens |
|
Thermal/AcousticalMetals |
|
Thermal/AcousticalFibers |
|
Consolidated |
Sales growth,
as reported |
|
2.5% |
|
40.2% |
|
11.6% |
|
(2.2)% |
|
15.6% |
|
Acquisitions |
|
—% |
|
26.6% |
|
—% |
|
—% |
|
8.9% |
|
Change in
tooling sales |
|
—% |
|
—% |
|
7.4% |
|
(1.3)% |
|
2.2% |
|
Foreign
currency translation |
|
1.8% |
|
1.9% |
|
2.5% |
|
—% |
|
1.7% |
|
Organic sales
growth |
|
0.7% |
|
11.7% |
|
1.7% |
|
(0.9)% |
|
2.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2017 |
|
|
Performance Materials |
|
Technical Nonwovens |
|
Thermal/AcousticalMetals |
|
Thermal/AcousticalFibers |
|
Consolidated |
Sales growth,
as reported |
|
2.8% |
|
79.0% |
|
4.2% |
|
7.1% |
|
23.1% |
|
Acquisitions |
|
—% |
|
65.7% |
|
—% |
|
—% |
|
17.3% |
|
Change in
tooling sales |
|
—% |
|
—% |
|
(0.7)% |
|
(0.7)% |
|
(0.2)% |
|
Foreign
currency translation |
|
(0.2)% |
|
(1.3)% |
|
(0.3)% |
|
—% |
|
(0.5)% |
|
Organic sales
growth |
|
3.0% |
|
14.6% |
|
5.2% |
|
7.8% |
|
6.5% |
|
|
This press
release provides information regarding organic sales change,
defined as net sales change excluding (1) sales from acquired
businesses (2) the impact of foreign currency translation and (3)
tooling sales. Management believes that the presentation of
organic sales change is useful to investors because it enables them
to assess, on a consistent basis, sales trends related to the
Company selling products to customers, without the impact of
foreign currency rate changes that are not under management's
control and do not reflect the performance of the Company and
management. Tooling sales are excluded because tooling
revenue is not generated from selling the Company's products to
customers, but rather is reimbursement from our customers for the
design and production of tools used by the Company in our
manufacturing processes. Tooling sales can be sporadic and
may mask underlying business conditions and obscure business
trends. |
|
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