Highlights
- Increased revenue by 12.8% year-over-year to $90.4 million from $80.1 million in the prior year period.
- Second quarter 2018 GAAP operating income of $12.0 million; Non-GAAP operating income of $14.1 million.
- Second quarter 2018 GAAP net earnings of $7.3 million, or $0.46 per diluted share; Non-GAAP net earnings of $8.9 million, or
$0.56 per diluted share.
DALLAS, Nov. 08, 2017 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NASDAQ:CSWI), a diversified industrial growth
company with well-established, scalable platforms and domain expertise across three segments: Industrial Products; Coatings,
Sealants & Adhesives; and Specialty Chemicals, today reported results for the fiscal second quarter ended September 30, 2017.
Net revenue during the fiscal second quarter of 2018 increased 12.8% to $90.4 million, compared to the prior
year period of $80.1 million. Organic growth was 6.0%, and acquisitions contributed 6.8% to total growth. The increase in
revenue was primarily attributable to increases in sales into the energy and HVAC end markets as well as $5.4 million of
acquisition-related revenue, partially offset by $2.6 million of estimated lost sales resulting from Hurricanes Harvey and
Irma.
Operating income in the fiscal second quarter of 2018 was $12.0 million, or 13.3% of sales, compared to $7.0
million, or 8.7% of sales, in the prior year period. The increase in operating income was the result of higher sales leverage and a
one-time impairment charge in the prior year that did not reoccur.
Joseph B. Armes, CSW Industrials’ Chief Executive Officer, commented, “As we reach the halfway point in our fiscal year, we have
delivered healthy growth in sales and earnings, with strong contributions from our Industrial Products and Specialty Chemical
segments. We continue to work through challenges in our Coatings, Sealants and Adhesives segment, and remain committed to our
ongoing realignment and optimization plans. We are positioned well to serve our customers and deliver value to our
shareholders.”
Armes continued, “We accomplished strong consolidated performance despite Hurricanes Harvey and Irma, which
impacted our operations. We were fortunate that our facilities did not suffer any physical damage, and we were able to return to
normal production in a short time period. While several of our team members were adversely affected, we are grateful for the safety
of our employees during these devastating storms. We are also proud of the way the collective CSW Industrials’ community came
together to support those affected.”
Second Quarter Results of Operations
Consolidated revenue increased to $90.4 million, compared with the prior year level of $80.1 million.
Industrial Products segment revenue was $48.5 million, compared to the prior year of $41.9 million. Higher
revenue was the result of strong sales into HVAC, coupled with acquisition related revenue. GAAP segment operating income
increased to $12.3 million, compared to the prior year of $9.9 million. Adjusted to exclude non-recurring expenses primarily
related to restructuring and realignment, segment operating income increased 26.0% to $12.5 million, compared to $9.9 million in
the prior year.
Coatings, Sealants and Adhesives (CS&A) segment revenue decreased to $21.4 million, compared to the prior
year of $23.0 million. GAAP segment operating income was $0.3 million, compared to the prior year operating loss of $1.6 million.
Adjusted to exclude non-recurring costs primarily related to restructuring, realignment and impairment, segment operating income
was $2.2 million, approximately flat when compared to the prior year.
Specialty Chemicals segment revenue was $20.5 million, compared to the prior year of $15.2 million. Higher sales
were driven primarily by increases in the energy end market. GAAP segment operating income was $2.2 million, compared to the prior
year of $1.2 million. Adjusted to exclude non-recurring costs primarily related to restructuring and realignment, segment operating
income was $2.2 million, compared to $1.7 million in the prior year.
Consolidated gross profit increased to $38.8 million, compared to the prior year level of $35.7 million.
Gross profit as a percentage of sales was 43.0%, compared to 44.5% in the prior year period. Lower gross margin compared to the
prior year primarily reflected the effect of restructuring and realignment costs and negative mix. In total, the Company incurred
$2.0 million in restructuring and realignment costs in the current fiscal quarter vs. $0.7 million in the prior year fiscal
quarter.
Consolidated operating expenses decreased 6.5% to $26.8 million, or 29.7% of sales, compared to the prior year
level of $28.7 million, or 35.8% of sales. Lower operating costs compared to the prior year were primarily attributable to an
intangible asset impairment that did not re-occur in the second quarter of 2018.
Consolidated net income was $7.3 million, or $0.46 per diluted share, compared to $3.8 million, or $0.24 per
diluted share in the prior year period. Adjusted to exclude one-time expenses and applying a normalized tax rate, adjusted net
income in the second quarter of 2018 was $8.9 million, or $0.56 per diluted share, compared to $7.5 million, or $0.48 per diluted
share, in the prior year period.
Conference Call Information
The company will host a conference call at 10:00 a.m. ET to discuss the results, followed by a question and answer
session for the investment community. A live webcast of the call can be accessed at ir.cswindustrials.com. To access the
call, participants may dial toll-free at 1-877-407-0784 or 1-201-689-8560 (international) and request to join the CSW Industrials
earnings call.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671
(international) and enter confirmation code 13672684. The telephonic replay will be available beginning at 1:00 p.m. ET on
Wednesday, November 8, 2017, and will last through 11:59 p.m. ET on Wednesday, November 22, 2017. The call will also be
available for replay via the webcast link on CSW Industrials’ Investor Relations website.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans,"
"anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify
forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and
statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business,
operations and financial performance and condition.
The forward-looking statements included in this press release are based on our current expectations,
projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are
subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results
to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors
described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form
10-K.
All forward-looking statements included in this press release are based on information currently available to
us, and we assume no obligation to update any forward-looking statement except as may be required by law.
Non-GAAP Financial Measures
This press release includes an analysis of adjusted earnings per share, adjusted net income, and adjusted operating income, which
are non-GAAP financial measures of performance. For a reconciliation of these measures to the most directly comparable GAAP
measures and for a discussion of why we consider these Non-GAAP measures useful, see the “Reconciliation of Non-GAAP Measures”
section of this release.
About CSW Industrials
CSWI is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three
segments: Industrial Products; Coatings, Sealants & Adhesives; and Specialty Chemicals. CSWI's broad portfolio of leading products
provides performance optimizing solutions to its customers. CSWI's products include mechanical products for heating, ventilation
and air conditioning ("HVAC") and refrigeration applications, coatings and sealants and high performance specialty lubricants.
Markets that CSWI serves include: HVAC, industrial, rail, plumbing, architecturally-specified building products, energy, mining and
general industrial markets.
| |
|
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF
INCOME |
| (unaudited) |
| |
|
|
| Income Statement |
|
Three Months
Ended
September 30,
|
|
|
Six Months Ended
September 30, |
| |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
| (in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
| Revenues, net |
|
$ |
90,369 |
|
|
$ |
80,131 |
|
|
|
|
$ |
188,396 |
|
|
$ |
164,238 |
|
|
| Cost of revenues |
|
|
(51,524 |
) |
|
|
(44,468 |
) |
|
|
|
|
(107,182 |
) |
|
|
(90,372 |
) |
|
| Gross profit |
|
|
38,845 |
|
|
|
35,663 |
|
|
|
|
|
81,214 |
|
|
|
73,866 |
|
|
| Selling, general and administrative expenses |
|
|
(26,830 |
) |
|
|
(25,894 |
) |
|
|
|
|
(54,936 |
) |
|
|
(55,605 |
) |
|
| Impairment expenses |
|
|
- |
|
|
|
(2,800 |
) |
|
|
|
|
- |
|
|
|
(3,883 |
) |
|
| Operating income |
|
|
12,015 |
|
|
|
6,969 |
|
|
|
|
|
26,278 |
|
|
|
14,378 |
|
|
| Interest expense, net |
|
|
(706 |
) |
|
|
(742 |
) |
|
|
|
|
(1,338 |
) |
|
|
(1,490 |
) |
|
| Other income (expense), net |
|
|
256 |
|
|
|
753 |
|
|
|
|
|
(56 |
) |
|
|
1,291 |
|
|
| Income before income taxes |
|
|
11,565 |
|
|
|
6,980 |
|
|
|
|
|
24,884 |
|
|
|
14,179 |
|
|
| Provision for income taxes |
|
|
(4,263 |
) |
|
|
(3,138 |
) |
|
|
|
|
(9,068 |
) |
|
|
(6,242 |
) |
|
| Net income |
|
$ |
7,302 |
|
|
$ |
3,842 |
|
|
|
|
$ |
15,816 |
|
|
$ |
7,937 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.46 |
|
|
$ |
0.24 |
|
|
|
|
$ |
1.00 |
|
|
$ |
0.51 |
|
|
| Diluted |
|
$ |
0.46 |
|
|
$ |
0.24 |
|
|
|
|
$ |
0.99 |
|
|
$ |
0.50 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| CONSOLIDATED BALANCE SHEETS |
| (unaudited) |
| |
|
|
| |
|
Sept. 30, |
|
March 31, |
| (in thousands) |
|
2017 |
|
2017 |
| |
|
|
|
|
| Cash and equivalents |
|
$ |
28,392 |
|
$ |
24,922 |
| Accounts receivable, net |
|
|
66,449 |
|
|
63,782 |
| Inventory, net |
|
|
52,344 |
|
|
50,401 |
| Other current assets |
|
|
6,522 |
|
|
7,178 |
| Total current assets |
|
|
153,707 |
|
|
146,283 |
| PP&E, net |
|
|
64,010 |
|
|
63,897 |
| Goodwill and intangible assets, net |
|
|
169,005 |
|
|
171,473 |
| Other assets |
|
|
16,297 |
|
|
16,011 |
| Total assets |
|
$ |
403,019 |
|
$ |
397,664 |
| |
|
|
|
|
| Accts payable and other current liabilities |
|
$ |
48,704 |
|
$ |
37,175 |
| Current portion of long-term debt |
|
|
561 |
|
|
561 |
| Total current liabilities |
|
|
49,265 |
|
|
37,736 |
| Long-term debt |
|
|
52,615 |
|
|
72,646 |
| Retirement benefits and other liabilities |
|
|
6,970 |
|
|
14,844 |
| Total liabilities |
|
|
108,850 |
|
|
125,226 |
| Total equity |
|
|
294,169 |
|
|
272,438 |
| Total liabilities and equity |
|
$ |
403,019 |
|
$ |
397,664 |
| |
|
|
|
|
| |
|
| CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (unaudited) |
| |
|
| |
Six Months Ended
September 30, |
| (amounts in thousands) |
|
2017 |
|
|
|
2016 |
|
| Cash flows from operating activities: |
|
|
|
| Net income |
$ |
15,816 |
|
|
$ |
7,937 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
| Depreciation |
|
4,053 |
|
|
|
4,208 |
|
| Amortization of intangible and other assets |
|
4,449 |
|
|
|
3,818 |
|
| Provision for inventory reserves |
|
(34 |
) |
|
|
1,083 |
|
| Share-based and other executive compensation |
|
2,036 |
|
|
|
2,988 |
|
| Net gain on asset disposals |
|
(79 |
) |
|
|
(320 |
) |
| Net pension benefit |
|
(649 |
) |
|
|
(542 |
) |
| Impairment of assets |
|
- |
|
|
|
3,883 |
|
| Net deferred taxes |
|
(386 |
) |
|
|
(1,001 |
) |
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable, net |
|
(2,162 |
) |
|
|
(5,488 |
) |
| Inventories |
|
(1,687 |
) |
|
|
1,056 |
|
| Prepaid expenses and other current assets |
|
673 |
|
|
|
(718 |
) |
| Other assets |
|
26 |
|
|
|
36 |
|
| Accounts payable and other current liabilities |
|
10,201 |
|
|
|
(887 |
) |
| Retirement benefits payable and other liabilities |
|
(6,801 |
) |
|
|
2,918 |
|
| Net cash provided by operating activities |
|
25,456 |
|
|
|
18,971 |
|
| Cash flows from investing activities: |
|
|
|
| Capital expenditures |
|
(3,847 |
) |
|
|
(5,075 |
) |
| Proceeds from sale of assets held for investment |
|
478 |
|
|
|
- |
|
| Proceeds from sale of assets |
|
11 |
|
|
|
389 |
|
| Net change in bank time deposits |
|
(12 |
) |
|
|
2,681 |
|
| Net cash used in investing activities |
|
(3,370 |
) |
|
|
(2,005 |
) |
| Cash flows from financing activities: |
|
|
|
| Borrowings on lines of credit |
|
- |
|
|
|
- |
|
| Repayments of lines of credit |
|
(20,031 |
) |
|
|
(17,281 |
) |
| Payments of deferred loan costs |
|
(401 |
) |
|
|
- |
|
| Purchase of treasury shares |
|
(26 |
) |
|
|
(569 |
) |
| Proceeds from stock option activity |
|
329 |
|
|
|
- |
|
| Net cash used in financing activities |
|
(20,129 |
) |
|
|
(17,850 |
) |
| Effect of exchange rate changes on cash and equivalents |
|
1,380 |
|
|
|
(479 |
) |
| Net change in cash and cash equivalents |
|
3,337 |
|
|
|
(1,363 |
) |
| Cash and cash equivalents, beginning of period |
|
23,146 |
|
|
|
25,987 |
|
| Cash and cash equivalents, end of period |
$ |
26,483 |
|
|
$ |
24,624 |
|
| |
|
|
|
Reconciliation of Non-GAAP Measures
| |
|
|
|
|
|
|
|
| Reconciliation of Operating Income to Adjusted Operating
Income |
| |
| |
(unaudited) |
|
| |
(in thousands) |
Three
Months Ended September 30, |
|
Six Months Ended
September 30, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP Operating Income |
$ |
12,015 |
|
$ |
6,969 |
|
$ |
26,278 |
|
$ |
14,378 |
|
| |
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
| |
Restructuring & realignment |
|
2,022 |
|
|
673 |
|
|
4,538 |
|
|
1,142 |
|
| |
Discrete Tax Provisions & Other |
|
110 |
|
|
- |
|
|
110 |
|
|
|
| |
Asset Impairment |
|
- |
|
|
2,800 |
|
|
- |
|
|
3,882 |
|
| |
Estimated Reserve for Excess Inventory |
|
- |
|
|
719 |
|
|
- |
|
|
719 |
|
| |
Consulting projects |
|
- |
|
|
318 |
|
|
- |
|
|
912 |
|
| |
CFO Transition |
|
- |
|
|
31 |
|
|
- |
|
|
2,872 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted Operating Income |
$ |
14,147 |
|
$ |
11,510 |
|
$ |
30,926 |
|
$ |
23,905 |
|
| |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of Net Income to Adjusted Net
Income |
| |
| |
(unaudited) |
|
| |
(in thousands, except share data) |
Three
Months Ended September 30, |
|
Six Months Ended
September 30, |
|
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
| GAAP Net Income |
$ |
7,302 |
|
$ |
3,842 |
|
$ |
15,816 |
|
$ |
7,937 |
|
| |
|
|
|
|
|
|
|
|
| Adjusting items, net of tax: |
|
|
|
|
|
|
|
|
| |
Restructuring & realignment |
|
1,314 |
|
|
435 |
|
|
2,950 |
|
|
742 |
|
| |
Asset Impairment |
|
- |
|
|
1,812 |
|
|
- |
|
|
2,602 |
|
|
| |
Estimated Reserve for Excess Inventory |
|
- |
|
|
465 |
|
|
- |
|
|
467 |
|
| |
Consulting projects |
|
- |
|
|
206 |
|
|
- |
|
|
593 |
|
| |
CFO Transition |
|
- |
|
|
20 |
|
|
- |
|
|
1,867 |
|
| |
Discrete Tax Provisions & Other |
|
287 |
|
|
736 |
|
|
287 |
|
|
1,348 |
|
|
| |
|
|
|
|
|
|
|
|
| Adjusted Net Income |
$ |
8,903 |
|
$ |
7,516 |
|
$ |
19,053 |
|
$ |
15,556 |
|
| |
|
|
|
|
|
|
|
|
| GAAP Diluted income per common share |
$ |
0.46 |
|
$ |
0.24 |
|
$ |
0.99 |
|
$ |
0.50 |
|
| |
|
|
|
|
|
|
|
|
| Adjusting items, per diluted common share: |
|
|
|
|
|
|
|
|
| |
Restructuring & realignment |
|
0.09 |
|
|
0.03 |
|
|
0.20 |
|
|
0.05 |
|
| |
Asset Impairment |
|
- |
|
|
0.12 |
|
|
- |
|
|
0.16 |
|
|
| |
Estimated Reserve for Excess Inventory |
|
- |
|
|
0.03 |
|
|
- |
|
|
0.03 |
|
| |
Consulting projects |
|
- |
|
|
0.01 |
|
|
- |
|
|
0.04 |
|
| |
CFO Transition |
|
- |
|
|
- |
|
|
- |
|
|
0.12 |
|
| |
Discrete Tax Provisions & Other |
|
0.01 |
|
|
0.05 |
|
|
0.01 |
|
|
0.09 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted earnings per diluted common share |
$ |
0.56 |
|
$ |
0.48 |
|
$ |
1.20 |
|
$ |
0.99 |
|
|
| Weighted-average shares outstanding (in thousands) |
|
|
|
|
|
|
|
|
| Diluted |
|
15,945 |
|
|
15,763 |
|
|
15,935 |
|
|
15,771 |
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Segment Operating Income to Adjusted Segment
Operating Income |
| |
|
|
| |
(unaudited) |
|
|
| |
(in thousands, except percentages) |
For the Three Months
Ended September 30, 2017 |
|
For the Three Months
Ended September 30, 2016 |
|
|
| |
|
Industrial
Products |
|
Coatings, Sealants &
Adhesives |
|
Specialty
Chemicals |
|
Corporate and
Other |
|
Consolidated |
|
Industrial
Products |
|
Coatings, Sealants &
Adhesives |
|
Specialty
Chemicals |
|
Corporate and
Other |
|
Consolidated |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
48,487 |
|
|
$ |
21,369 |
|
|
$ |
20,514 |
|
|
$ |
(1 |
) |
|
$ |
90,369 |
|
|
$ |
41,858 |
|
|
$ |
23,006 |
|
|
$ |
15,245 |
|
|
$ |
22 |
|
|
$ |
80,131 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
$ |
12,280 |
|
|
$ |
344 |
|
|
$ |
2,200 |
|
|
$ |
(2,809 |
) |
|
$ |
12,015 |
|
|
$ |
9,897 |
|
|
$ |
(1,616 |
) |
|
$ |
1,232 |
|
|
$ |
(2,544 |
) |
|
$ |
6,969 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Restructuring & realignment |
|
135 |
|
|
|
1,887 |
|
|
|
- |
|
|
|
- |
|
|
|
2,022 |
|
|
|
- |
|
|
|
673 |
|
|
|
- |
|
|
|
- |
|
|
|
673 |
|
|
|
| |
Discrete Tax Provisions & Other |
|
110 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
110 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
| |
Asset Impairment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,800 |
|
|
|
- |
|
|
|
- |
|
|
|
2,800 |
|
|
|
| |
Estimated Reserve for Excess Inventory |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17 |
|
|
|
279 |
|
|
|
423 |
|
|
|
- |
|
|
|
719 |
|
|
|
| |
Consulting projects |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
23 |
|
|
|
24 |
|
|
|
14 |
|
|
|
257 |
|
|
|
318 |
|
|
|
| |
CFO Transition |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
31 |
|
|
|
31 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Income |
$ |
12,525 |
|
|
$ |
2,231 |
|
|
$ |
2,200 |
|
|
$ |
(2,809 |
) |
|
$ |
14,147 |
|
|
$ |
9,937 |
|
|
$ |
2,160 |
|
|
$ |
1,669 |
|
|
$ |
(2,256 |
) |
|
$ |
11,510 |
|
|
|
| % of revenue |
|
25.8 |
% |
|
|
10.4 |
% |
|
|
10.7 |
% |
|
|
|
|
15.7 |
% |
|
|
23.7 |
% |
|
|
9.4 |
% |
|
|
10.9 |
% |
|
|
|
|
14.4 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
(unaudited) |
|
|
| |
(in thousands, except percentages) |
Year To Date
September 30, 2017 |
|
Year To Date
September 30, 2016 |
|
|
| |
|
Industrial
Products |
|
Coatings, Sealants &
Adhesives |
|
Specialty
Chemicals |
|
Corporate and
Other |
|
Consolidated |
|
Industrial
Products |
|
Coatings, Sealants &
Adhesives |
|
Specialty
Chemicals |
|
Corporate and
Other |
|
Consolidated |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
101,748 |
|
|
$ |
44,751 |
|
|
$ |
41,896 |
|
|
$ |
1 |
|
|
$ |
188,396 |
|
|
$ |
85,333 |
|
|
$ |
46,371 |
|
|
$ |
32,490 |
|
|
$ |
44 |
|
|
$ |
164,238 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
$ |
25,913 |
|
|
$ |
1,335 |
|
|
$ |
4,110 |
|
|
$ |
(5,080 |
) |
|
$ |
26,278 |
|
|
$ |
20,504 |
|
|
$ |
97 |
|
|
$ |
2,288 |
|
|
$ |
(8,511 |
) |
|
$ |
14,378 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Restructuring & realignment |
|
367 |
|
|
|
3,295 |
|
|
|
876 |
|
|
|
- |
|
|
|
4,538 |
|
|
|
- |
|
|
|
1,142 |
|
|
|
- |
|
|
|
- |
|
|
|
1,142 |
|
|
|
| |
Discrete Tax Provisions & Other |
|
110 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
110 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
| |
Asset Impairment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
|
|
3,187 |
|
|
|
605 |
|
|
|
- |
|
|
|
3,882 |
|
|
|
| |
Estimated Reserve for Excess Inventory |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17 |
|
|
|
279 |
|
|
|
423 |
|
|
|
- |
|
|
|
719 |
|
|
|
| |
Consulting projects |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
84 |
|
|
|
145 |
|
|
|
82 |
|
|
|
601 |
|
|
|
912 |
|
|
|
| |
CFO Transition |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,872 |
|
|
|
2,872 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Income |
$ |
26,390 |
|
|
$ |
4,630 |
|
|
$ |
4,986 |
|
|
$ |
(5,080 |
) |
|
$ |
30,926 |
|
|
$ |
20,695 |
|
|
$ |
4,850 |
|
|
$ |
3,398 |
|
|
$ |
(5,038 |
) |
|
$ |
23,905 |
|
|
|
| % of revenue |
|
25.9 |
% |
|
|
10.3 |
% |
|
|
11.9 |
% |
|
|
|
|
16.4 |
% |
|
|
24.3 |
% |
|
|
10.5 |
% |
|
|
10.5 |
% |
|
|
|
|
14.6 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We use adjusted earnings per share, adjusted net income and adjusted operating income, together with financial
measures prepared in accordance with GAAP, such as revenue, income from operations, operating expense, operating income and net
income, to assess our historical and prospective operating performance and to enhance our understanding of our core operating
performance. We also believe these measures are useful for investors to assess the operating performance of our business without
the effect of non-operating items.
Investor contact:
Michael Callahan, ICR
(203) 682-8311
Michael.Callahan@icrinc.com
