A. SCHULMAN, INC.
|
Delaware
|
|
0-7459
|
|
34-0514850
|
(State or other jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
3637 Ridgewood Rd, Fairlawn, Ohio
|
44333
|
||||
(Address of principal executive offices)
|
(Zip Code)
|
(330) 666-3751
|
|
Exhibit Number
|
Description
|
|
|
3.1
|
Amended and Restated By-Laws of A. Schulman, Inc.
|
99.1
|
Press Release, dated April 4, 2017
|
|
|
|
A. Schulman, Inc.
|
|
|
|
|
|
|
By:
|
/s/ Andrean R. Horton
|
|
|
|
Andrean R. Horton
|
|
|
|
Executive Vice President & Chief Legal Officer
|
•
|
On GAAP basis, earnings per diluted share were $0.11, compared with a loss of $0.01 in second quarter a year ago; adjusted earnings per diluted share were $0.31, flat on year-over-year basis
|
•
|
Segment gross margin steady at 15.9%, unchanged from prior year
|
•
|
Europe operating results exceeded last year despite foreign currency exchange headwinds
|
•
|
Engineered Composites, Latin America and Asia-Pacific segments also reported strong fiscal second quarter operating results
|
•
|
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.
|
|
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
|
|
|
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
|
|
|
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
|
|
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
|
||||||||||||||||||
29,503
|
|
|
(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
|
||||||||||||||||||
29,292
|
|
|
(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
|
||||||||||||||||||
29,470
|
|
|
(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
|
||||||||||||||||||
29,455
|
|
|
(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
|
%
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|