ST. LOUIS, July 28, 2009 (GLOBE NEWSWIRE) -- Thermadyne Holdings Corporation (Nasdaq:THMD) today reported results for the three and six months ended June 30, 2009.
OVERVIEW
Periods ended June 30,
----------------------
Three months Six months
------------ ----------
($ millions except EPS) 2009 2008 Inc 2009 2008 Inc
---- ---- (Dcr) ---- ---- (Dcr)
vs 2008 vs 2008
------- -------
Net sales $84.8 142.1 (40.3%) $168.1 272.9 (38.4%)
Net income (Loss)-
continuing operations $0.6 6.2 ($5.6) ($1.9) 11.0 ($12.9)
Earnings (Loss) per
share - continuing
operations $0.04 $0.47 ($0.43) ($0.14) $0.82 ($0.96)
Cash provided by
operating activities $18.9 $17.2 $1.7 $21.9 $20.1 $1.8
Financial Review for the Second Quarter Ended June 30, 2009
Net sales in the second quarter of 2009 were $84.8 million, a decrease of 40.3% as compared to the second quarter of 2008. Excluding the impact of foreign currency translations, net sales decreased 36% across both the U.S. markets and markets outside the U.S.
Gross margin, as a percentage of 2009 second quarter sales, was 29.4% compared to 33.2% of net sales in the prior year second quarter. Excluding the effects of the LIFO inventory accounting method, gross margin was 27.9% and 33.9% in the second quarter of 2009 and 2008, respectively. The 6.0 percentage point decline in gross margin, excluding LIFO effect, is primarily associated with the leverage inefficiencies arising from reduced production volumes in 2009. The gross margin, excluding LIFO effects, of 27.9% in the second quarter of 2009 is an increase of 3.5 percentage points over the first quarter of 2009. Production volumes increased almost 15% in the second quarter improving leverage efficiencies as compared to 2009 first quarter levels. In addition, the impact of raw materials on costs of sales declined during the second quarter of 2009 as compared to the first quarter of 2009.
Selling, general and administrative (SG&A) costs were $18.3 million, or 21.5% of sales, in the second quarter of 2009 compared to $29.7 million, or 20.9% of sales, in last year's second quarter.
Interest costs were $4.9 million and $5.3 million in the second quarter of 2009 and 2008, respectively. The average effective interest rate of 9.3% in the second quarter of 2009 was 50 basis points lower than the second quarter of 2008 due to the reduced proportion of Second Lien indebtedness and a lower LIBOR. In the second quarters of 2009 and 2008, the Special Interest adjustment applicable to the Company's $175 million Senior Subordinated Notes was 0.75%. Effective July 1, 2009, through December 31, 2009, this adjustment is 1.25% as determined based on the Company's debt-to-EBITDA leverage ratio.
For the 2009 second quarter, the income tax expense represented an effective income tax rate of 32% as compared to an income tax expense in the prior year at an effective rate of 44%. The difference in effective tax rates is primarily due to a change in accounting principles that allows the Company to recognize the benefits of a portion of its net operating loss carryovers to offset deferred U.S. income tax expenses recorded on certain foreign earnings without the recognition of the related benefit of foreign tax credits.
For the three months ended June 30, 2009, net income from continuing operations was $0.6 million, or $0.04 per diluted share, compared to $6.2 million, or $0.47 per diluted share, for the comparable period of 2008. Discontinued operations recognized a gain of $1.9 million, or $0.14 per share, for the three months ended June 30, 2009, as compared to a loss of $0.3 million, or $0.03 per share, for the three months ended June 30, 2008. The second quarter of 2009 included a gain realized from final settlement of the balance due to the Company in connection with the sale in May 2007 of its South African businesses. For the three months ended June 30, 2009, net income was $2.5 million, or $0.18 per diluted share, compared to net income of $6.0 million, or $0.44 per diluted share, for the second quarter of 2008.
Financial Review of Continuing Operations for Six Months Ended June 30, 2009
Net sales for the six months ended June 30, 2009, were $168.1 million, a decrease of 38.4% from the net sales of $272.9 million in first six months of 2008. Excluding the impact of foreign currency translations, net sales decreased 33% with 35% in the U.S. markets and 30% in markets outside the U.S.
For the six months ended June 30, 2009, gross margin was 27.5% of net sales, as compared to 32.8% of net sales for first half of 2008. Excluding LIFO effects, gross margin was 26.2% and 33.4% in the six months ending June 30, 2009, and 2008, respectively. The decrease in gross margin for 2009 as compared to the prior-year period reflects the leverage inefficiencies arising from reduced production volumes.
SG&A expenses were $37.7 million, or 22.4% of net sales, and $57.1 million, or 20.9% of net sales, for the six months ended June 30, 2009, and 2008, respectively. The SG&A expenses for the first quarter of 2009 include $1.3 million of severance charges payable to employees who elected to participate in an early retirement program implemented in January 2009.
Interest costs of $9.5 million decreased $1.2 million during the six-month period ended June 30, 2009, as compared to the first six months of 2008. The effective interest rate declined approximately 90 basis points during the first six months of 2009 as compared to 2008 due to the reduced proportion of Second Lien indebtedness and lower LIBOR.
For the six months ended June 30, 2009, the Company recognized an income tax benefit at an effective income tax rate of 31%, as compared to an income tax expense at an effective rate of 44% for the comparable 2008 period. The difference in effective tax rates is primarily due to a change in accounting principles that allows the Company to recognize the benefits of a portion of its net operating loss carryovers to offset deferred U.S. income tax expenses recorded on certain foreign earnings without the recognition of the related benefit of foreign tax credits.
For the six months ended June 30, 2009, the Company incurred a net loss from continuing operations of $1.9 million, or $0.14 per diluted share, as compared to net income from continuing operations of $11.0 million, or $0.82 per diluted share, for the comparable period of 2008. Discontinued operations recognized a gain of $1.9 million, or $0.14 per share, as compared to a net loss of $0.5 million, or $0.04 per share, for the six months ended June 30, 2009, and 2008, respectively. For the six months ended June 30, 2009, net income was $0.02 million compared to net income of $10.5 million, or $0.78 per diluted share for the comparable period of 2008.
Cash Flows From Operating Activities and Liquidity
Operating activities provided $18.9 million of cash in the second quarter of 2009 with $3.1 million from operational income and $15.8 million primarily from collections of customer receivables and reduced inventory levels. For the six months ended June 30, 2009, operating activities provided $21.9 million of cash primarily from collections of customer receivables and reduced inventory levels.
Inventory levels represented approximately four months supply at June 30, 2009, as compared to approximately three months in June 2008. As of June 30, 2009, with the ongoing payment of supplier payables and the reduced volume of new purchases, supplier trade financing had declined to 26% of inventories as compared to 47% in June 2008 and 30% at December 31, 2008.
As of June 30, 2009, combined cash and availability under the Company's Working Capital Facility was $45 million. The Company's indebtedness, net of cash, was $199.5 million as of June 30, 2009, compared to $222.1 million at December 31, 2008.
On June 15, 2009, the Company amended its Working Capital Facility with General Electric Capital Corporation increasing the interest rate to 90-day LIBOR plus 4.00%, reducing the fixed charge coverage ratios for 2009, and, at the Company's request, reducing the commitment from $100 million to $70 million. The Company is also finalizing the amendment of its Second Lien Facility, which it expects to complete in early August 2009. The amendments are expected to extend the maturity of the facility from November 2010, to November 2012, and increase the borrowings to $25 million.
Operating EBITDA, As Adjusted
In the second quarter of 2009, "Operating EBITDA, as adjusted", was $7.4 million compared to $21.4 million from continuing operations in the second quarter of 2008.
Outlook for 2009
Paul Melnuk, Thermadyne's Chairman and Chief Executive Officer, stated, "While down approximately 40% from last year, we are pleased that sales levels were relatively steady throughout the second quarter as compared to the first quarter of this year. We are optimistic that the worst of the downturn is behind us as recent reports are indicating increasing global steel consumption. We are also seeing some early indications of increased demand for our products in the market place. However, we do not yet foresee significant changes in our sales volumes through the remainder of 2009. We expect to continue to reduce inventory levels during the remainder of this year while maintaining our production volumes at the levels of the second quarter to ensure proper supply for faster moving items.
"We expect gross margin, excluding LIFO, to improve further and exceed 30% throughout the second half of 2009 primarily due to further declines in our material costs as higher cost purchase commitments have flowed through the supply chain. Further, as a result of our cost savings programs implemented earlier this year and ongoing efforts to reduce expenses, we anticipate SG&A expenses will be less than 22% of sales for the remainder of the year," Mr. Melnuk added.
Mr. Melnuk continued, "Throughout the year, we have responded decisively to realign our cost structure with the lower sales volumes resulting from the drastic global slowdown and we will continue to reduce costs as necessary. We have accomplished this while maintaining our commitment to providing industry leading products and improving service to our customers. For example, demand for the new low cost inverter welding machine we introduced in the U.S. during the second quarter is exceeding our expectations. This product has been very popular with customers in our Asia Pacific Region since its introduction there last year. We also introduced an automated gas box this year which completes our range of automated plasma cutting systems that have been selling well globally. In September, we will launch an innovative redesign of the gas flow regulator. Finally, our sales team has done a good job of maintaining coverage of our customers despite our cut backs.
"This has been an extremely demanding period and we are pleased with the manner in which our team has quickly responded to the formidable challenges of a 40% reduction in sales. Not only have we realigned our cost structure and launched new products, we have improved efficiency in manufacturing, improved customer service levels and generated free cash flow from inventory reductions. As a result, we are confident in a future of increasing profitability and cash flows and an expanding presence in the market place. We are gratified that our lenders are also confident in our future and have provided us with enhanced financial strength to pursue our plans," concluded Mr. Melnuk.
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, July 29, 2009, at 10:00 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 July 29, 2009, at 12:59 p.m. Eastern until August 5, 2009, at 11:59 p.m. Eastern by dialing U.S. and Canada (888) 296-6944; International 1-203-369-3027. 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 June 30,
--------------------------------------
% of % of
2009 Sales 2008 Sales
-------- -------- -------- --------
Net sales $ 84,805 100.0% $142,135 100.0%
Cost of goods sold 59,860 70.6% 94,968 66.8%
-------- -------- -------- --------
Gross margin 24,945 29.4% 47,167 33.2%
Selling, general and
administrative expenses
(including $1,300 of severance
charges in 2009) 18,263 21.5% 29,674 20.9%
Amortization of intangibles 672 0.8% 669 0.5%
Net periodic postretirement
benefits 5 0.0% 52 0.0%
-------- -------- -------- --------
Operating income 6,005 7.1% 16,772 11.8%
Other income (expenses):
Interest (4,911) (5.8)% (5,323) (3.7)%
Amortization of deferred
financing costs (237) (0.3)% (234) (0.2)%
Other -- 0.0% (69) (0.0)%
-------- -------- -------- --------
Income (loss) from continuing
operations before income tax
provision and discontinued
operations 857 1.0% 11,146 7.8%
Income tax provision (benefit) 275 0.3% 4,901 3.4%
-------- -------- -------- --------
Net income (loss) from
continuing operations 582 0.7% 6,245 4.4%
Income (loss) from discontinued
operations, net of tax 1,933 2.3% (283) (0.2)%
-------- -------- -------- --------
Net income $ 2,515 3.0% $ 5,962 4.2%
======== ======== ======== ========
Basic and diluted net income
(loss) per share:
Continuing operations $ 0.04 $ 0.47
Discontinued operations 0.14 (0.03)
-------- --------
Net income (loss) $ 0.18 $ 0.44
======== ========
Six Months Ended June 30,
--------------------------------------
% of % of
2009 Sales 2008 Sales
-------- -------- -------- --------
Net sales $168,116 100.0% $272,902 100.0%
Cost of goods sold 121,811 72.5% 183,456 67.2%
-------- -------- -------- --------
Gross margin 46,305 27.5% 89,446 32.8%
Selling, general and
administrative expenses
(including $1,300 of severance
charges in 2009) 37,701 22.4% 57,125 20.9%
Amortization of intangibles 1,343 0.8% 1,336 0.5%
Net periodic postretirement
benefits 9 0.0% 104 0.0%
-------- -------- -------- --------
Operating income 7,252 4.3% 30,881 11.3%
Other income (expenses):
Interest (9,544) (5.7)% (10,657) (3.9)%
Amortization of deferred
financing costs (473) (0.3)% (468) (0.2)%
Other -- 0.0% (121) (0.0)%
-------- -------- -------- --------
Income (loss) from continuing
operations before income tax
provision and discontinued
operations (2,765) (1.6)% 19,635 7.2%
Income tax provision (benefit) (851) (0.5)% 8,673 3.2%
-------- -------- -------- --------
Net income (loss) from
continuing operations (1,914) (1.1)% 10,962 4.0%
Income (loss) from discontinued
operations, net of tax 1,933 1.1% (475) (0.2)%
-------- -------- -------- --------
Net income $ 19 0.0% $ 10,487 3.8%
======== ======== ======== ========
Basic and diluted net income
(loss) per share:
Continuing operations $ (0.14) $ 0.82
Discontinued operations 0.14 (0.04)
-------- --------
Net income (loss) $ -- $ 0.78
======== ========
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 Six Months Ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
Cash flows from continuing
operations
Cash flows from operating
activities:
Net income $ 2,515 $ 5,962 $ 19 $ 10,487
Adjustments to reconcile net
income to net cash used in
operating activities:
(Income) loss from
discontinued operations (1,933) 283 (1,933) 475
Depreciation and
amortization 3,201 3,162 6,203 6,280
Deferred income taxes (623) 2,633 (1,893) 4,484
Net Periodic post-retirement
benefits 5 52 9 104
-------- -------- -------- --------
3,165 12,092 2,405 21,830
-------- -------- -------- --------
Changes in operating assets
and liabilities:
Accounts receivable 7,184 (1,902) 18,034 (8,035)
Inventories 9,706 (6,959) 21,861 (5,151)
Prepaids 755 (741) 1,283 (805)
Accounts payable (1,468) 7,626 (9,809) 11,780
Accrued and other
liabilities (1,583) 3,837 (9,088) 1,226
Accrued interest 4,383 3,998 695 (762)
Accrued taxes (2,805) (625) (2,937) 257
Other long-term liabilities (405) (195) (513) (384)
Other, net -- 69 -- 121
-------- -------- -------- --------
15,767 5,108 19,526 (1,753)
-------- -------- -------- --------
Net cash provided by (used
in) operating activities 18,932 17,200 21,931 20,077
-------- -------- -------- --------
Cash flows from investing
activities:
Capital expenditures (1,735) (3,135) (3,973) (4,632)
Proceeds from sales of assets -- -- -- 500
Purchase of outside interest
in joint venture -- (2,169) -- (3,013)
Other, net (79) (300) (134) (348)
-------- -------- -------- --------
Net cash provided by (used
in) investing activities (1,814) (5,604) (4,107) (7,493)
-------- -------- -------- --------
Cash flows from financing
activities:
Borrowings under Working
Capital Facility -- 1,964 8,923 16,145
Repayments of Working Capital
Facility (22,195) (6,901) (29,388) (11,616)
Borrowings under other debt -- -- 75 --
Repayments of other debt 283 (15,456) (235) (22,689)
Advances to discontinued
operations 1,897 (1,936) 1,933 (3,062)
Termination payment on
derivative 2,313 --
Other, net (481) 1,508 (1,204) 1,752
-------- -------- -------- --------
Net cash provided by (used
in) financing activities (20,496) (20,821) (17,583) (19,470)
-------- -------- -------- --------
Effect of exchange rate
changes on cash and cash
equivalents 1,193 626 905 1,194
-------- -------- -------- --------
Net cash provided by (used
in) continuing operations $ (2,185) $ (8,599) $ 1,146 $ (5,692)
======== ======== ======== ========
Cash flows from discontinued
operations
Net cash provided by (used in)
operating activities $ 940 $ (1,488) $ 1,040 $ (2,382)
Net cash provided by (used in)
investing activities -- -- -- 500
Net cash provided by (used in)
financing activities (1,764) 1,451 (1,558) 1,581
Effect of exchange rates on
cash and cash equivalents 142 11 150 26
-------- -------- -------- --------
Net cash provided by (used in)
discontinued operation $ (682) $ (26) $ (368) $ (275)
======== ======== ======== ========
Total increase (decrease) in
cash and cash equivalents $ (2,867) $ (8,625) $ 778 $ (5,967)
Total cash and cash equivalents
beginning of period (including
cash of discontinued
operations) 16,146 19,093 12,501 16,435
-------- -------- -------- --------
Total cash and cash equivalents
end of period (including cash
of discontinued operations) $ 13,279 $ 10,468 $ 13,279 $ 10,468
======== ======== ======== ========
The financial statement presentations reflect the reclassification of
the Company's discontinued operations
THERMADYNE HOLDINGS CORPORATION
FINANCIAL HIGHLIGHTS
(In thousands)
Schedule 3
June 30, December 31,
2009 2008
------------ ------------
UNAUDITED
ASSETS
Cash and cash equivalents $ 13,062 $ 11,916
Accounts receivable, net 56,287 72,044
Inventories 83,170 102,479
Prepaid expenses and other 4,535 5,443
Deferred tax assets 2,277 2,277
Assets held for sale 638 916
------------ ------------
Total current assets 159,969 195,075
Property, plant and equipment, net 48,045 47,501
Goodwill 186,109 184,043
Intangibles, net 59,574 60,783
Other assets 4,103 6,967
------------ ------------
Total assets $ 457,800 $ 494,369
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Working capital facility $ 12,066 $ 32,531
Current maturities of long-term obligations 2,652 2,060
Accounts payable 21,365 30,823
Accrued and other liabilities 19,974 28,295
Accrued interest 7,253 6,558
Income taxes payable 103 2,849
Deferred tax liabilities 3,253 3,253
Liabilities applicable to assets held for
sale 5,530 5,266
------------ ------------
Total current liabilities 72,196 111,635
Long-term obligations, less current
maturities 197,881 199,454
Deferred tax liabilities 47,915 47,292
Other long-term liabilities 17,714 17,685
Total shareholders' equity 122,094 118,303
------------ ------------
Total liabilities and shareholders'
equity $ 457,800 $ 494,369
============ ============
June 30, December 31,
Long-term Obligations 2009 2008
------------ ------------
Working Capital Facility $ 12,066 $ 32,531
Second-Lien Facility 14,000 14,000
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 11,533 12,514
------------ ------------
212,599 234,045
Current maturities and working capital
facility (14,718) (34,591)
------------ ------------
$ 197,881 $ 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
------------------ ----------------------------
June 30, March 31, Dec. 31, Sept. 30, June 30,
-------- -------- -------- -------- --------
Accounts receivable,
net $ 56,287 $ 60,457 $ 72,044 $ 93,842 $ 95,997
Inventories 83,170 89,493 102,479 109,539 99,576
Accounts payable (21,365) (22,182) (30,823) (47,857) (47,235)
-------- -------- -------- -------- --------
$118,092 $127,768 $143,700 $155,524 $148,338
======== ======== ======== ======== ========
% Annualized Sales 34.8% 38.3% 34.3% 27.9% 26.1%
DSO 59.7 65.3 62.0 60.6 60.8
Inventory Turns 2.88 2.77 3.08 3.49 3.81
DPO 32.1 32.2 35.1 45.1 44.8
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
June 30,
------------------
2009 2008
-------- --------
Net income (loss) from continuing operations $ 0.6 $ 6.2
Plus:
Depreciation and amortization including deferred
financing fees 3.2 3.2
Interest expense 4.9 5.3
Interest income on contingent payment (0.5) --
Net periodic postretirement benefits in excess
of cash payments (0.1) --
LIFO (1.3) 1.1
Minority interest -- 0.1
Severance accrual 0.3 --
Stock compensation expense -- 0.6
Provision for income taxes 0.3 4.9
-------- --------
Operating EBITDA, as adjusted, from continuing
operations (1) $ 7.4 $ 21.4
Percentage of Net Sales 8.7% 15.1%
EBITDA from discontinued operations 1.9 (0.2)
-------- --------
Operating EBITDA, as adjusted (1) $ 9.3 $ 21.2
======== ========
Six Months Ended
June 30,
------------------
2009 2008
-------- --------
Net income from continuing operations $ (1.9) $ 10.9
Plus:
Depreciation and amortization including deferred
financing fees 6.2 6.3
Interest expense 9.5 10.6
Interest income on contingent payment (0.5) --
Net periodic postretirement benefits in excess
of cash payments (0.1) --
LIFO (2.3) 1.6
Minority interest -- 0.2
Severance accrual 1.6 --
Stock compensation expense (0.7) 0.8
Provision for income taxes (0.8) 8.7
-------- --------
Operating EBITDA, as adjusted, from continuing
operations(1) $ 11.0 $ 39.1
Percentage of Net Sales 6.5% 14.3%
EBITDA from discontinued operations 1.9 (0.4)
-------- --------
Operating EBITDA, as adjusted(1) $ 12.9 $ 38.7
======== ========
(1) A Non-GAAP measure
The financial statement presentations reflect the reclassification of
the Company's discontinued operations