AKRON, Ohio, April 4, 2017 /PRNewswire/
-- A. Schulman, Inc. (Nasdaq: SHLM) today announced earnings for the fiscal 2017 second quarter and first half of
fiscal 2017 ending February 28, 2017. On a GAAP basis, the Company reported earnings per diluted share
of $0.11, compared with a loss of $0.01 in the prior year period. Adjusted
earnings per diluted share were $0.31, flat on a year-over-year basis. For the first half of fiscal 2017, A.
Schulman reported earnings per diluted share of $0.14 on a GAAP basis, compared with $0.17 a year ago. Adjusted earnings per diluted share during this period was $0.80, compared with $0.82 in the first half of fiscal 2016.
Consolidated net sales for the second quarter were $568.7 million, compared with $591.8 million in the
second quarter of fiscal 2016. Year-to-date, the Company reported consolidated net sales of $1,168.7
million in fiscal 2017, compared with consolidated net sales of $1,241 million in the first
half of fiscal 2016. Excluding the negative impact of foreign currency translation in the second quarter and first half of fiscal
2017 of $12.6 million and $21.9 million, respectively, net sales declined 1.8% in the second
quarter and 4.1% in the first half compared with a year ago, primarily due to lower volumes in the EMEA and USCAN segments.
"We've stated this is a reset year; however, I am highly encouraged with the steady progress we are making through the hard
work of our teams. During the quarter, we saw strong results in Engineered Composites and experienced continued growth in our
Asia-Pacific and Latin America segments related to improved
product mix and strength in Performance Materials. Our European business saw a year-over-year improvement in operating income
despite the impact of foreign currency, in part, helped by our recent business simplification efforts," said Joseph M. Gingo, chairman, president and chief executive officer. "While our U.S. and Canada region remains challenged by complex plant consolidation efforts, which had been complicated by
the Lucent matter, I am confident that we have solid action plans in place to drive future profitability."
Gross profit on a GAAP basis in the second quarter of fiscal 2017 was $89.2 million, compared
with $89.8 million in the prior year period. For the first half of fiscal 2017, gross profit on a
GAAP basis was $190.2 million, compared with $194.8 million a year
ago. Segment gross margin was 15.9% in the second quarter and 16.4% in the first half of fiscal 2017, which is relatively flat
with the comparable fiscal 2016 periods.
GAAP operating income in the second quarter was $21.3 million, compared with $16.0 million in the prior year period. Adjusted operating income margin was 4.8% in the second quarter of
fiscal 2017, compared with 4.9% in the second quarter of fiscal 2016. On a year-to-date basis, the adjusted operating margin was
5.3%, compared with 5.4% in the prior year.
A. Schulman reported fiscal second quarter net income of $3.2 million, compared with a loss of $0.3 million in the year-ago period. Year-to-date, reported net income was $4.2
million compared to $4.9 million in the prior six-month period. On an adjusted basis,
the net income comparison for the second quarter was $9.3 million versus $9.2 million in the prior year period. Year-to-date adjusted net income was $23.7
million, compared with $24.1 million in the prior year period. Fiscal 2017 second quarter
adjusted EBITDA was $46.7 million, compared with $49.7 million in the prior year period. Year-to-date,
adjusted EBITDA was $101.3 million, compared with $108.1 million in
the first six months of fiscal 2016.
Balance Sheet/Cash Flow
Cash provided from operations for the first half of fiscal 2017 was $40.1 million, compared with $30.6
million in the prior period. Working capital days were 48 days at the end of February 28, 2017, an improvement of 10
days from the comparable period last year.
At quarter-end, net debt (total debt less cash and cash equivalents and restricted cash) stands at $901
million, which equates to a net leverage ratio of 4.06x. Since the purchase of Citadel in mid-2015, the Company
has paid down approximately $168 million of total debt.
Business Outlook
The Company's initial annual guidance included an assumed Euro rate of $1.13. While the Company
does not generally adjust guidance around currency changes over the course of the fiscal year, if the Euro remains at current
levels of approximately $1.06 for the remainder of the fiscal year along with no changes in other
world currencies, the full fiscal year negative impact of foreign currency translation would be approximately $0.15 per diluted share and would adversely impact sales by approximately $90
million and EBITDA by approximately $8 million.
Excluding potential 2017 currency translation as noted above, the Company is maintaining its previously stated fiscal 2017
operating targets of $2.5 billion to $2.6 billion in sales, adjusted EBITDA of $225
million to $230 million, and a return on invested capital of 11 percent to 12.5 percent. The outlook for adjusted
earnings per diluted share remains in the range of $2.08 to $2.18 on an operating basis.
Gingo stated, "As a result of potential foreign currency headwind, we are intensely focused on continuing to execute our
strategy with a sense of urgency. We must deliver tangible benefits from our strengthened global sales organization and
aggressively commercialize value-added products in our expanding innovation pipeline."
Gingo noted that the Company is focused on increasing sales in high-demand, high-margin specialized growth niches worldwide.
"I believe A. Schulman's expertise, technology and service sets it apart from our competitors. These distinctions will become
even more evident as we progress into fiscal 2018."
Please refer to the reconciliation of GAAP and Non-GAAP financial measures for the types of items excluded from the
Company's business outlook.
Conference Call on the Web
A live Internet broadcast of A. Schulman's conference call regarding fiscal 2017 second quarter and first half results
can be accessed at 10:00 a.m. Eastern Time on April 5, 2017, 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 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 4,800 people and has 54 manufacturing facilities globally. A. Schulman reported net
sales of approximately $2.5 billion for the fiscal year ended August 31, 2016. 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, net income per diluted share excluding certain items and adjusted EBITDA, 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.
The Company uses segment gross profit, SG&A expenses excluding certain items, segment operating income, operating income
before certain items, net income excluding certain items, net income per diluted share excluding certain items and adjusted
EBITDA to assess performance and allocate resources because the Company believes that these measures are useful to investors and
management in understanding current profitability levels that may serve as a basis for evaluating future performance and
facilitating comparability of results. In addition, segment operating income before certain items and net income excluding
certain items are important to management as all are a component of the Company's annual and long-term employee incentive plans.
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 current debt position could adversely affect our financial health and prevent us from fulfilling our financial
obligations; and
- failure of counterparties to perform under the terms and conditions of contractual arrangements, including suppliers,
customers, buyers and sellers of a business and other third parties with which the Company
contracts.
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, 2016. 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
(Unaudited)
|
|
|
Three months ended
|
|
Six months ended
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28,
2017
|
|
February 29,
2016
|
|
(In thousands, except per share data)
|
Net sales
|
$
|
568,678
|
|
|
$
|
591,761
|
|
|
$
|
1,168,678
|
|
|
$
|
1,240,980
|
|
Cost of sales
|
479,492
|
|
|
501,937
|
|
|
978,477
|
|
|
1,046,227
|
|
Selling, general and administrative expenses
|
65,967
|
|
|
71,604
|
|
|
138,342
|
|
|
148,841
|
|
Restructuring expense
|
1,878
|
|
|
2,214
|
|
|
11,422
|
|
|
3,760
|
|
Operating income (loss)
|
21,341
|
|
|
16,006
|
|
|
40,437
|
|
|
42,152
|
|
Interest expense
|
13,107
|
|
|
13,790
|
|
|
26,271
|
|
|
27,408
|
|
Foreign currency transaction (gains) losses
|
1,081
|
|
|
950
|
|
|
1,643
|
|
|
1,679
|
|
Other (income) expense, net
|
674
|
|
|
(269)
|
|
|
(459)
|
|
|
(218)
|
|
Income (loss) before taxes
|
6,479
|
|
|
1,535
|
|
|
12,982
|
|
|
13,283
|
|
Provision (benefit) for U.S. and foreign income taxes
|
1,143
|
|
|
(487)
|
|
|
4,462
|
|
|
3,764
|
|
Net income (loss)
|
5,336
|
|
|
2,022
|
|
|
8,520
|
|
|
9,519
|
|
Noncontrolling interests
|
(306)
|
|
|
(430)
|
|
|
(547)
|
|
|
(834)
|
|
Net income (loss) attributable to A. Schulman, Inc.
|
5,030
|
|
|
1,592
|
|
|
7,973
|
|
|
8,685
|
|
Convertible special stock dividends
|
1,875
|
|
|
1,875
|
|
|
3,750
|
|
|
3,750
|
|
Net income (loss) available to A. Schulman, Inc. common
stockholders
|
$
|
3,155
|
|
|
$
|
(283)
|
|
|
$
|
4,223
|
|
|
$
|
4,935
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,394
|
|
|
29,292
|
|
|
29,378
|
|
|
29,257
|
|
Diluted
|
29,503
|
|
|
29,292
|
|
|
29,470
|
|
|
29,455
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share available to A. Schulman, Inc. common
stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
Diluted
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share
|
$
|
0.205
|
|
|
$
|
0.205
|
|
|
$
|
0.410
|
|
|
$
|
0.410
|
|
Cash dividends per share of convertible special stock
|
$
|
15.00
|
|
|
$
|
15.00
|
|
|
$
|
30.00
|
|
|
$
|
30.00
|
|
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
February 28,
2017
|
|
August 31,
2016
|
|
(In thousands)
|
ASSETS
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
47,861
|
|
|
$
|
35,260
|
|
Restricted cash
|
1,623
|
|
|
8,143
|
|
Accounts receivable, less allowance for doubtful accounts of $11,411 at
February 28, 2017 and $11,341 at August 31, 2016
|
380,791
|
|
|
376,786
|
|
Inventories
|
279,814
|
|
|
263,617
|
|
Prepaid expenses and other current assets
|
40,837
|
|
|
40,263
|
|
Assets held for sale
|
9,669
|
|
|
—
|
|
Total current assets
|
760,595
|
|
|
724,069
|
|
Property, plant and equipment, at cost:
|
|
|
|
Land and improvements
|
29,798
|
|
|
32,957
|
|
Buildings and leasehold improvements
|
170,485
|
|
|
184,291
|
|
Machinery and equipment
|
434,993
|
|
|
447,932
|
|
Furniture and fixtures
|
32,720
|
|
|
34,457
|
|
Construction in progress
|
25,000
|
|
|
20,431
|
|
Gross property, plant and equipment
|
692,996
|
|
|
720,068
|
|
Accumulated depreciation
|
401,288
|
|
|
405,246
|
|
Net property, plant and equipment
|
291,708
|
|
|
314,822
|
|
Deferred charges and other noncurrent assets
|
85,364
|
|
|
88,161
|
|
Goodwill
|
257,507
|
|
|
257,773
|
|
Intangible assets, net
|
344,622
|
|
|
362,614
|
|
Total assets
|
$
|
1,739,796
|
|
|
$
|
1,747,439
|
|
LIABILITIES AND EQUITY
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
|
303,160
|
|
|
$
|
280,060
|
|
U.S. and foreign income taxes payable
|
5,783
|
|
|
8,985
|
|
Accrued payroll, taxes and related benefits
|
41,039
|
|
|
47,569
|
|
Other accrued liabilities
|
66,844
|
|
|
67,704
|
|
Short-term debt
|
28,857
|
|
|
25,447
|
|
Total current liabilities
|
445,683
|
|
|
429,765
|
|
Long-term debt
|
921,312
|
|
|
919,349
|
|
Pension plans
|
138,574
|
|
|
145,108
|
|
Deferred income taxes
|
56,113
|
|
|
59,013
|
|
Other long-term liabilities
|
24,850
|
|
|
25,844
|
|
Total liabilities
|
1,586,532
|
|
|
1,579,079
|
|
Commitments and contingencies
|
|
|
|
Stockholders' equity:
|
|
|
|
Convertible special stock, no par value
|
120,289
|
|
|
120,289
|
|
Common stock, $1 par value, authorized - 75,000 shares, issued - 48,553
shares at February 28, 2017 and 48,510 shares at August 31, 2016
|
48,553
|
|
|
48,510
|
|
Additional paid-in capital
|
277,165
|
|
|
275,115
|
|
Accumulated other comprehensive income (loss)
|
(130,640)
|
|
|
(120,721)
|
|
Retained earnings
|
211,205
|
|
|
219,039
|
|
Treasury stock, at cost, 19,066 shares at February 28, 2017 and 19,069
shares at August 31, 2016
|
(382,903)
|
|
|
(382,963)
|
|
Total A. Schulman, Inc.'s stockholders' equity
|
143,669
|
|
|
159,269
|
|
Noncontrolling interests
|
9,595
|
|
|
9,091
|
|
Total equity
|
153,264
|
|
|
168,360
|
|
Total liabilities and equity
|
$
|
1,739,796
|
|
|
$
|
1,747,439
|
|
A. SCHULMAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six months ended
|
|
February 28, 2017
|
|
February 29, 2016
|
|
(In thousands)
|
Operating activities:
|
|
|
|
Net income
|
$
|
8,520
|
|
|
$
|
9,519
|
|
Adjustments to reconcile net income to net cash provided from (used in)
operating activities:
|
|
|
|
Depreciation
|
22,215
|
|
|
25,053
|
|
Amortization
|
17,644
|
|
|
20,032
|
|
Deferred tax provision (benefit)
|
(4,493)
|
|
|
(2,360)
|
|
Pension, postretirement benefits and other compensation
|
3,361
|
|
|
2,621
|
|
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
Accounts receivable
|
(15,866)
|
|
|
10,822
|
|
Inventories
|
(24,670)
|
|
|
4,772
|
|
Accounts payable
|
40,363
|
|
|
(30,846)
|
|
Income taxes
|
(4,639)
|
|
|
(1,491)
|
|
Accrued payroll and other accrued liabilities
|
(4,311)
|
|
|
(5,773)
|
|
Other assets and long-term liabilities
|
2,025
|
|
|
(1,712)
|
|
Net cash provided from (used in) operating activities
|
40,149
|
|
|
30,637
|
|
Investing activities
|
|
|
|
Expenditures for property, plant and equipment
|
(24,505)
|
|
|
(20,365)
|
|
Proceeds from the sale of assets
|
478
|
|
|
843
|
|
Other investing activities
|
125
|
|
|
—
|
|
Net cash provided from (used in) investing activities
|
(23,902)
|
|
|
(19,522)
|
|
Financing activities:
|
|
|
|
Cash dividends paid to special stockholders
|
(3,750)
|
|
|
(3,750)
|
|
Cash dividends paid to common stockholders
|
(12,057)
|
|
|
(12,043)
|
|
Increase (decrease) in short-term debt
|
5,153
|
|
|
4,275
|
|
Borrowings on revolving credit facility
|
238,543
|
|
|
45,655
|
|
Repayments of revolving credit facility
|
(173,895)
|
|
|
(29,900)
|
|
Repayments of other long-term debt and capital leases
|
(63,139)
|
|
|
(61,450)
|
|
Issuances of stock, common and treasury
|
93
|
|
|
148
|
|
Redemptions of common stock
|
(620)
|
|
|
(900)
|
|
Net cash provided from (used in) financing activities
|
(9,672)
|
|
|
(57,965)
|
|
Effect of exchange rate changes on cash
|
(494)
|
|
|
(3,144)
|
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash
|
6,081
|
|
|
(49,994)
|
|
Cash, cash equivalents, and restricted cash at beginning of
period
|
43,403
|
|
|
96,872
|
|
Cash, cash equivalents, and restricted cash at end of period
|
$
|
49,484
|
|
|
$
|
46,878
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
47,861
|
|
|
$
|
46,878
|
|
Restricted cash
|
1,623
|
|
|
—
|
|
Total cash, cash equivalents, and restricted cash
|
$
|
49,484
|
|
|
$
|
46,878
|
|
A. SCHULMAN, INC.
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
|
Three months ended February 28, 2017
|
|
Cost of
Sales
|
|
Gross Margin
|
|
SG&A
|
|
Restructuring Expense
|
|
Operating Income
|
|
Non Operating (Income) Expense
|
|
Income Tax Expense (Benefit)
|
|
Net Income Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except for %'s and per share data)
|
As reported
|
|
$
|
479,492
|
|
|
15.7
|
%
|
|
$
|
65,967
|
|
|
$
|
1,878
|
|
|
$
|
21,341
|
|
|
$
|
14,862
|
|
|
$
|
1,143
|
|
|
$
|
3,155
|
|
|
$
|
0.11
|
|
Certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment (8)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,623)
|
|
|
390
|
|
|
1,233
|
|
|
0.04
|
|
Accelerated depreciation (1)
|
|
(467)
|
|
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
112
|
|
|
355
|
|
|
0.01
|
|
Restructuring and related costs (3)
|
|
(871)
|
|
|
|
|
(2,221)
|
|
|
(1,878)
|
|
|
4,970
|
|
|
—
|
|
|
1,193
|
|
|
3,777
|
|
|
0.12
|
|
Lucent costs (4)
|
|
—
|
|
|
|
|
(596)
|
|
|
—
|
|
|
596
|
|
|
—
|
|
|
143
|
|
|
453
|
|
|
0.02
|
|
CEO transition costs (5)
|
|
—
|
|
|
|
|
(6)
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
—
|
|
Accelerated amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
5
|
|
|
16
|
|
|
—
|
|
Tax (benefits) charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(267)
|
|
|
267
|
|
|
0.01
|
|
Total certain items
|
|
(1,338)
|
|
|
0.2
|
%
|
|
(2,823)
|
|
|
(1,878)
|
|
|
6,039
|
|
|
(1,644)
|
|
|
1,578
|
|
|
6,105
|
|
|
0.20
|
|
As Adjusted
|
|
$
|
478,154
|
|
|
15.9
|
%
|
|
$
|
63,144
|
|
|
$
|
—
|
|
|
$
|
27,380
|
|
|
$
|
13,218
|
|
|
$
|
2,721
|
|
|
$
|
9,260
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Revenue
|
|
|
|
|
|
11.1
|
%
|
|
|
|
4.8
|
%
|
|
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended February 29, 2016
|
|
Cost of
Sales
|
|
Gross Margin
|
|
SG&A
|
|
Restructuring Expense
|
|
Operating Income
|
|
Non Operating (Income) Expense
|
|
Income Tax Expense (Benefit)
|
|
Net Income Available to ASI Common Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except for %'s and per share data)
|
As reported
|
|
$
|
501,937
|
|
|
15.2
|
%
|
|
$
|
71,604
|
|
|
$
|
2,214
|
|
|
$
|
16,006
|
|
|
$
|
14,471
|
|
|
$
|
(487)
|
|
|
$
|
(283)
|
|
|
$
|
(0.01)
|
|
Certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated depreciation (1)
|
|
(2,049)
|
|
|
|
|
(8)
|
|
|
—
|
|
|
2,057
|
|
|
—
|
|
|
479
|
|
|
1,578
|
|
|
0.05
|
|
Costs related to acquisitions and integrations (2)
|
|
(1,970)
|
|
|
|
|
(2,291)
|
|
|
—
|
|
|
4,261
|
|
|
—
|
|
|
1,022
|
|
|
3,239
|
|
|
0.11
|
|
Restructuring and related costs (3)
|
|
(455)
|
|
|
|
|
(3,100)
|
|
|
(2,214)
|
|
|
5,769
|
|
|
(84)
|
|
|
1,381
|
|
|
4,472
|
|
|
0.16
|
|
Lucent costs (4)
|
|
452
|
|
|
|
|
(1,063)
|
|
|
—
|
|
|
611
|
|
|
—
|
|
|
51
|
|
|
560
|
|
|
0.02
|
|
Accelerated amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(164)
|
|
|
38
|
|
|
126
|
|
|
—
|
|
Tax (benefits) charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
498
|
|
|
(498)
|
|
|
(0.02)
|
|
Total certain items
|
|
(4,022)
|
|
|
0.7
|
%
|
|
(6,462)
|
|
|
(2,214)
|
|
|
12,698
|
|
|
(248)
|
|
|
3,469
|
|
|
9,477
|
|
|
0.32
|
|
As Adjusted
|
|
$
|
497,915
|
|
|
15.9
|
%
|
|
$
|
65,142
|
|
|
$
|
—
|
|
|
$
|
28,704
|
|
|
$
|
14,223
|
|
|
$
|
2,982
|
|
|
$
|
9,194
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Revenue
|
|
|
|
|
|
11.0
|
%
|
|
|
|
4.9
|
%
|
|
|
|
—
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.6
|
%
|
|
|
|
|
Six months ended February 28, 2017
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non
Operating
(Income)
Expense
|
|
Income
Tax
Expense
(Benefit)
|
|
Net Income
Available to ASI
Common
Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except for %'s and per share data)
|
As reported
|
|
$
|
978,477
|
|
|
16.3
|
%
|
|
$
|
138,342
|
|
|
$
|
11,422
|
|
|
$
|
40,437
|
|
|
$
|
27,455
|
|
|
$
|
4,462
|
|
|
$
|
4,223
|
|
|
$
|
0.14
|
|
Certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment (8)
|
|
—
|
|
|
|
|
(678)
|
|
|
—
|
|
|
678
|
|
|
(1,623)
|
|
|
552
|
|
|
1,749
|
|
|
0.06
|
|
Accelerated depreciation (1)
|
|
(822)
|
|
|
|
|
(1)
|
|
|
—
|
|
|
823
|
|
|
—
|
|
|
197
|
|
|
626
|
|
|
0.02
|
|
Costs related to acquisitions and integrations (2)
|
|
(57)
|
|
|
|
|
(548)
|
|
|
—
|
|
|
605
|
|
|
—
|
|
|
145
|
|
|
460
|
|
|
0.02
|
|
Restructuring and related costs (3)
|
|
(1,043)
|
|
|
|
|
(5,778)
|
|
|
(11,422)
|
|
|
18,243
|
|
|
—
|
|
|
4,378
|
|
|
13,865
|
|
|
0.46
|
|
Lucent costs (4)
|
|
(86)
|
|
|
|
|
(1,319)
|
|
|
—
|
|
|
1,405
|
|
|
—
|
|
|
337
|
|
|
1,068
|
|
|
0.04
|
|
CEO transition costs (5)
|
|
—
|
|
|
|
|
(196)
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
47
|
|
|
149
|
|
|
0.01
|
|
Accelerated amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(227)
|
|
|
54
|
|
|
173
|
|
|
0.01
|
|
Tax (benefits) charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,347)
|
|
|
1,347
|
|
|
0.05
|
|
Total certain items
|
|
(2,008)
|
|
|
0.1
|
%
|
|
(8,520)
|
|
|
(11,422)
|
|
|
21,950
|
|
|
(1,850)
|
|
|
4,363
|
|
|
19,437
|
|
|
0.67
|
|
As Adjusted
|
|
$
|
976,469
|
|
|
16.4
|
%
|
|
$
|
129,822
|
|
|
$
|
—
|
|
|
$
|
62,387
|
|
|
$
|
25,605
|
|
|
$
|
8,825
|
|
|
$
|
23,660
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Revenue
|
|
|
|
|
|
11.1
|
%
|
|
|
|
5.3
|
%
|
|
|
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended February 29, 2016
|
|
Cost of
Sales
|
|
Gross
Margin
|
|
SG&A
|
|
Restructuring
Expense
|
|
Operating
Income
|
|
Non
Operating
(Income)
Expense
|
|
Income
Tax
Expense
(Benefit)
|
|
Net Income
Available to ASI
Common
Stockholders
|
|
Diluted
EPS
|
|
|
|
(In thousands, except for %'s and per share data)
|
As reported
|
|
$
|
1,046,227
|
|
|
15.7
|
%
|
|
$
|
148,841
|
|
|
$
|
3,760
|
|
|
$
|
42,152
|
|
|
$
|
28,869
|
|
|
$
|
3,764
|
|
|
$
|
4,935
|
|
|
$
|
0.17
|
|
Certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated depreciation (1)
|
|
(3,496)
|
|
|
|
|
(14)
|
|
|
—
|
|
|
3,510
|
|
|
—
|
|
|
885
|
|
|
2,625
|
|
|
0.09
|
|
Costs related to acquisitions and integrations (2)
|
|
(2,099)
|
|
|
|
|
(4,028)
|
|
|
—
|
|
|
6,127
|
|
|
—
|
|
|
1,544
|
|
|
4,583
|
|
|
0.15
|
|
Restructuring and related costs (3)
|
|
(885)
|
|
|
|
|
(5,794)
|
|
|
(3,760)
|
|
|
10,439
|
|
|
(361)
|
|
|
2,772
|
|
|
8,028
|
|
|
0.27
|
|
Lucent costs (4)
|
|
(1,378)
|
|
|
|
|
(2,939)
|
|
|
—
|
|
|
4,317
|
|
|
—
|
|
|
1,088
|
|
|
3,229
|
|
|
0.11
|
|
Accelerated amortization of debt issuance costs (6)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(274)
|
|
|
69
|
|
|
205
|
|
|
0.01
|
|
Tax (benefits) charges (7)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(467)
|
|
|
467
|
|
|
0.02
|
|
Total certain items
|
|
(7,858)
|
|
|
0.6
|
%
|
|
(12,775)
|
|
|
(3,760)
|
|
|
24,393
|
|
|
(635)
|
|
|
5,891
|
|
|
19,137
|
|
|
0.65
|
|
As Adjusted
|
|
$
|
1,038,369
|
|
|
16.3
|
%
|
|
$
|
136,066
|
|
|
$
|
—
|
|
|
$
|
66,545
|
|
|
$
|
28,234
|
|
|
$
|
9,655
|
|
|
$
|
24,072
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Revenue
|
|
|
|
|
|
11.0
|
%
|
|
|
|
5.4
|
%
|
|
|
|
—
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.2
|
%
|
|
|
|
|
1 - Accelerated depreciation is related to restructuring plans in the Company's USCAN and EMEA segments.
2 - 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.
3 - 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. Refer to
Note 12 in the Company's Quarterly Report on Form 10-Q for further discussion.
4 - Lucent costs primarily represent legal and investigation costs related to resolving the Lucent matter, product
manufacturing costs for reworking existing Lucent inventory, obsolete Lucent inventory reserve costs, and dedicated internal
personnel costs that would have otherwise been focused on normal operations.
5 - CEO transition costs represent charges for deferred compensation granted to Bernard
Rzepka.
6 - Write off of debt issuance costs are related to prepayments of $56.0 million of Term Loan B.
Refer to Note 3 in the Company's Quarterly Report on Form 10-Q for further discussion.
7 - Tax (benefits) charges represent the Company's quarterly non-GAAP tax based on the overall estimated annual non-GAAP
effective tax rates.
8 - Asset impairment relates to the discontinuation of information technology assets in the USCAN segment and future cash
settlement of a commitment to a local government.
A. SCHULMAN, INC.
ADJUSTED EBITDA RECONCILIATION
(Unaudited)
|
|
|
Three months ended
|
|
Six months ended
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
Net income available to A. Schulman, Inc. common stockholders
|
$
|
3,155
|
|
|
$
|
(283)
|
|
|
$
|
4,223
|
|
|
$
|
4,935
|
|
Interest expense
|
13,107
|
|
|
13,790
|
|
|
26,271
|
|
|
27,408
|
|
Provision for U.S. and foreign income
taxes
|
1,143
|
|
|
(487)
|
|
|
4,462
|
|
|
3,764
|
|
Depreciation and amortization
|
19,870
|
|
|
23,033
|
|
|
39,859
|
|
|
45,085
|
|
Noncontrolling interests
|
306
|
|
|
430
|
|
|
547
|
|
|
834
|
|
Convertible special stock dividends
|
1,875
|
|
|
1,875
|
|
|
3,750
|
|
|
3,750
|
|
Other (1)
|
1,755
|
|
|
681
|
|
|
1,184
|
|
|
1,461
|
|
EBITDA, as calculated
|
$
|
41,211
|
|
|
$
|
39,039
|
|
|
$
|
80,296
|
|
|
$
|
87,237
|
|
Non-GAAP Adjustments (2)
|
5,467
|
|
|
10,650
|
|
|
21,023
|
|
|
20,886
|
|
EBITDA, as adjusted
|
$
|
46,678
|
|
|
$
|
49,689
|
|
|
$
|
101,319
|
|
|
$
|
108,123
|
|
|
|
|
|
|
|
|
|
(1) - Other includes Foreign currency transaction (gains) losses and Other (income) expense, net.
(2) - For details on Non-GAAP adjustments, refer to "Reconciliation of GAAP and Non-GAAP Financial Measures", items (2) -
(8). Amounts are included in Operating Income. Accelerated depreciation on the "Reconciliation of GAAP and Non-GAAP
Financial Measures" has been excluded as it is already included in Depreciation and amortization above.
A. SCHULMAN, INC.
SUPPLEMENTAL SEGMENT INFORMATION
(Unaudited)
|
|
|
|
Net Sales
|
|
Net Sales
|
|
|
Three months ended
|
|
Six months ended
|
EMEA
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
Custom Concentrates and Services
|
|
$
|
149,085
|
|
|
$
|
154,782
|
|
|
$
|
(5,697)
|
|
|
(3.7)
|
%
|
|
$
|
307,118
|
|
|
$
|
328,911
|
|
|
$
|
(21,793)
|
|
|
(6.6)
|
%
|
Performance Materials
|
|
127,817
|
|
|
135,548
|
|
|
(7,731)
|
|
|
(5.7)
|
%
|
|
265,856
|
|
|
289,515
|
|
|
(23,659)
|
|
|
(8.2)
|
%
|
Total EMEA
|
|
$
|
276,902
|
|
|
$
|
290,330
|
|
|
$
|
(13,428)
|
|
|
(4.6)
|
%
|
|
$
|
572,974
|
|
|
$
|
618,426
|
|
|
$
|
(45,452)
|
|
|
(7.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
|
Three months ended
|
|
Six months ended
|
USCAN
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
Custom Concentrates and Services
|
|
$
|
59,956
|
|
|
$
|
63,160
|
|
|
$
|
(3,204)
|
|
|
(5.1)
|
%
|
|
$
|
122,882
|
|
|
$
|
127,313
|
|
|
$
|
(4,431)
|
|
|
(3.5)
|
%
|
Performance Materials
|
|
91,962
|
|
|
107,657
|
|
|
(15,695)
|
|
|
(14.6)
|
%
|
|
185,454
|
|
|
221,786
|
|
|
(36,332)
|
|
|
(16.4)
|
%
|
Total USCAN
|
|
$
|
151,918
|
|
|
$
|
170,817
|
|
|
$
|
(18,899)
|
|
|
(11.1)
|
%
|
|
$
|
308,336
|
|
|
$
|
349,099
|
|
|
$
|
(40,763)
|
|
|
(11.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
|
Three months ended
|
|
Six months ended
|
LATAM
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
Custom Concentrates and Services
|
|
$
|
27,374
|
|
|
$
|
28,399
|
|
|
$
|
(1,025)
|
|
|
(3.6)
|
%
|
|
$
|
57,343
|
|
|
$
|
62,412
|
|
|
$
|
(5,069)
|
|
|
(8.1)
|
%
|
Performance Materials
|
|
12,288
|
|
|
9,759
|
|
|
2,529
|
|
|
25.9
|
%
|
|
24,535
|
|
|
20,949
|
|
|
3,586
|
|
|
17.1
|
%
|
Total LATAM
|
|
$
|
39,662
|
|
|
$
|
38,158
|
|
|
$
|
1,504
|
|
|
3.9
|
%
|
|
$
|
81,878
|
|
|
$
|
83,361
|
|
|
$
|
(1,483)
|
|
|
(1.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
|
Three months ended
|
|
Six months ended
|
APAC
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
Custom Concentrates and Services
|
|
$
|
23,171
|
|
|
$
|
22,118
|
|
|
$
|
1,053
|
|
|
4.8
|
%
|
|
$
|
48,162
|
|
|
$
|
45,660
|
|
|
$
|
2,502
|
|
|
5.5
|
%
|
Performance Materials
|
|
25,743
|
|
|
22,945
|
|
|
2,798
|
|
|
12.2
|
%
|
|
51,489
|
|
|
45,095
|
|
|
6,394
|
|
|
14.2
|
%
|
Total APAC
|
|
$
|
48,914
|
|
|
$
|
45,063
|
|
|
$
|
3,851
|
|
|
8.5
|
%
|
|
$
|
99,651
|
|
|
$
|
90,755
|
|
|
$
|
8,896
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
|
Three months ended
|
|
Six months ended
|
Consolidated
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
Engineered Composites
|
|
$
|
51,282
|
|
|
$
|
47,393
|
|
|
$
|
3,889
|
|
|
8.2
|
%
|
|
$
|
105,839
|
|
|
$
|
99,339
|
|
|
$
|
6,500
|
|
|
6.5
|
%
|
Custom Concentrates and Services
|
|
259,586
|
|
|
268,459
|
|
|
(8,873)
|
|
|
(3.3)
|
%
|
|
535,505
|
|
|
564,296
|
|
|
(28,791)
|
|
|
(5.1)
|
%
|
Performance Materials
|
|
257,810
|
|
|
275,909
|
|
|
(18,099)
|
|
|
(6.6)
|
%
|
|
527,334
|
|
|
577,345
|
|
|
(50,011)
|
|
|
(8.7)
|
%
|
Total Consolidated
|
|
$
|
568,678
|
|
|
$
|
591,761
|
|
|
$
|
(23,083)
|
|
|
(3.9)
|
%
|
|
$
|
1,168,678
|
|
|
$
|
1,240,980
|
|
|
$
|
(72,302)
|
|
|
(5.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Gross Profit
|
|
Segment Gross Profit
|
|
|
Three months ended
|
|
Six months ended
|
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
February
28, 2017
|
|
February
29, 2016
|
|
$ Change
|
|
% Change
|
|
|
(In thousands, except for %'s)
|
|
|
|
|
|
|
|
|
EMEA
|
|
$
|
39,130
|
|
|
$
|
38,953
|
|
|
$
|
177
|
|
|
0.5
|
%
|
|
$
|
83,788
|
|
|
$
|
86,637
|
|
|
$
|
(2,849)
|
|
|
(3.3)
|
%
|
USCAN
|
|
20,060
|
|
|
27,241
|
|
|
(7,181)
|
|
|
(26.4)
|
%
|
|
44,576
|
|
|
57,535
|
|
|
(12,959)
|
|
|
(22.5)
|
%
|
LATAM
|
|
9,595
|
|
|
8,466
|
|
|
1,129
|
|
|
13.3
|
%
|
|
19,012
|
|
|
18,171
|
|
|
841
|
|
|
4.6
|
%
|
APAC
|
|
8,908
|
|
|
8,199
|
|
|
709
|
|
|
8.6
|
%
|
|
18,034
|
|
|
16,073
|
|
|
1,961
|
|
|
12.2
|
%
|
EC
|
|
12,831
|
|
|
10,987
|
|
|
1,844
|
|
|
16.8
|
%
|
|
26,799
|
|
|
24,195
|
|
|
2,604
|
|
|
10.8
|
%
|
Total segment gross profit
|
|
$
|
90,524
|
|
|
$
|
93,846
|
|
|
$
|
(3,322)
|
|
|
(3.5)
|
%
|
|
$
|
192,209
|
|
|
$
|
202,611
|
|
|
$
|
(10,402)
|
|
|
(5.1)
|
%
|
Accelerated depreciation and restructuring related costs
|
|
(1,338)
|
|
|
(2,504)
|
|
|
1,166
|
|
|
(46.6)
|
%
|
|
(1,865)
|
|
|
(4,381)
|
|
|
2,516
|
|
|
(57.4)
|
%
|
Costs related to acquisitions and integrations
|
|
—
|
|
|
(1,970)
|
|
|
1,970
|
|
|
—
|
%
|
|
(57)
|
|
|
(2,099)
|
|
|
2,042
|
|
|
(97.3)
|
%
|
Lucent costs (1)
|
|
—
|
|
|
452
|
|
|
(452)
|
|
|
—
|
%
|
|
(86)
|
|
|
(1,378)
|
|
|
1,292
|
|
|
(93.8)
|
%
|
Total gross profit
|
|
$
|
89,186
|
|
|
$
|
89,824
|
|
|
$
|
(638)
|
|
|
(0.7)
|
%
|
|
$
|
190,201
|
|
|
$
|
194,753
|
|
|
$
|
(4,552)
|
|
|
(2.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Refer to Note 13, Commitments and Contingencies, for additional discussion on this matter. Lucent costs in cost
of sales include additional product and manufacturing operational costs for reworking inventory. Lucent costs in selling,
general and administrative expenses include legal and investigative costs. In addition, in the three and six months ended
February 29, 2016, Lucent costs in SG&A also include dedicated internal personnel costs that
would have otherwise been focused on normal operations.
(2)Restructuring related costs for the three and six months ended February 28, 2017 of
$3.1 million and $6.8 million, respectively, and for the three and
six months ended February 29, 2016 of $3.6 million and $6.7 million, respectively, primarily included in selling, general and administrative expenses in the Company's
statements of operations, are costs associated with professional fees for outside strategic consultants regarding actions to
improve the profitability of the organization and efficiency of its operations, and costs associated with reorganizations of the
legal entity structure of the Company. Restructuring expenses included in restructuring expense in the Company's statement
of operations include costs permitted under ASC 420, Exit or Disposal Obligations, such as severance costs, outplacement services
and contract termination costs.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/a-schulman-reports-fiscal-2017-second-quarter-first-half-results-300434573.html
SOURCE A. Schulman, Inc.