2012-12-14 00:17:14 -
SPARTECH ANNOUNCES FOURTH QUARTER RESULTS
__________________________________________________
St. Louis, Missouri, December 13, 2012 - Spartech Corporation (NYSE:SEH), a
leading producer of plastic sheet, compounds, and packaging solutions, announced
today operating results for the fourth quarter of 2012.
Fourth Quarter 2012 Results
* Net sales of $286.8 million decreased 2% from the same period in 2011, as a
volume increase of 4% was more than offset by lower raw material costs.
* The reported operating earnings increased to $2.5 million from a loss of
$34.9 million in the prior year period which included asset impairments of
$40.5 million in 2011. Operating earnings excluding special items increased
to $9.8 million from $6.2 million in the prior year fourth quarter due to
higher volumes, greater operating efficiencies, and continued benefits from
our turnarounds initiatives.
* The reported diluted loss per share from continuing operations was $0.02
compared to a loss of $0.89 per diluted share in the prior year fourth
quarter. Diluted earnings per share from continuing operations excluding
special items was $0.14 compared to $0.05 in the prior year period.
* Cash flows from operations for the fourth quarter of 2012 reached $15.2
million, which was used to pay down $8.3 million of debt, leaving $134.9
million of total debt at year end.
Fiscal Year 2012 Overview
* Net sales increased by 4% from the prior year to $1,149.4 million,
reflecting a 1% increase in volume, a 1% increase in price/mix, and a 2%
increase from the impact of an extra week in fiscal 2012 versus fiscal 2011
(53 weeks vs. 52 weeks).
* The reported operating earnings were $15.6 million in 2012 compared to a
$21.3 million operating loss in 2011. Operating earnings excluding special
items increased to $24.4 million in 2012 from $21.1 million in the prior
year. Diluted earnings per share from continuing operations excluding
special items were $0.28 in 2012 compared to $0.20 in the prior year.
* Net cash provided by operating activities was $44.3 million in 2012 that
provided for the pay down of $22.5 million of debt while funding $20.0
million of capital expenditures to support future operating improvements and
capacity for growth.
* We continue to make progress on the operational turnaround initiatives, and
the previously announced plant consolidation efforts. We remain focused on
completing the PolyOne Corporation transaction, which was granted early
termination of the required waiting period under Hart-Scott-Rodino Antitrust
Improvements Act on November 21, 2012.
Note: Please see the reconciliation tables and the narrative that follows for
adjustments to certain GAAP measures and discussion of items affecting results.
Special items include foreign exchange (gains)/losses, goodwill impairments,
restructuring and exit costs, and merger and transaction costs.
Spartech's President and Chief Executive Officer, Vicki Holt stated, "In our
fourth quarter, we realized a 58% improvement in operating earnings excluding
special items. We continue to be confident in our initiatives to enhance
margins, accelerate growth, and manage our cost structure. The Custom Sheet and
Rollstock segment continues to achieve operational improvements and we are
delivering measurable earnings improvements in this segment. We are near
completion on the consolidation of our Custom Sheet and Rollstock facilities in
Canada and are on track to complete the expansion of our Muncie, Indiana
packaging facility by calendar year end. We have also announced a consolidation
of our Stratford, Ontario Color and Specialty Compounds operation that we expect
to be completed by April 2013."
Holt added, "We have received the clearance of our Hart Scott Rodino regulatory
filing and are on track to complete the pending merger with PolyOne. We are
excited at the prospect to join forces with PolyOne as we believe this
transaction represents the best path forward for our stockholders, customers and
employees. We believe that our complementary growth strategies, and combined
resources will accelerate our shift to specialty applications and create a more
competitive cost structure, enhanced customer relationships, improved market
access and increasingly innovative technologies. We are pleased to be moving
forward with a transaction that provides Spartech's stockholders with immediate
value through a combination of a meaningful upfront premium over our pre-
announcement share price, participation in the future of our combined
businesses, and in the synergies inherent in this transaction."
Consolidated Results
Net sales were $286.8 million in the three-month period ended November 3, 2012
representing a 2% decrease over the same period in the prior year. These
results represent a 6% decrease from price/mix partially offset by a 4% increase
in volume. The price/mix decrease was primarily related to decreases in selling
prices to pass through lower raw material costs. The increase in volume was due
to an increase in sales of sheet for material handling and custom thermoforming
applications along with increased sales volume of compounds and sheet to the
automotive and distribution end markets.
Gross margin per pound sold increased from 11.1 cents for the three months ended
October 29, 2011 to 13.9 cents for the three months ended November 3, 2012 due
to operational improvements and efficiencies from the turnaround effort in the
Custom Sheet and Rollstock segment along with a shift to higher margin business.
Focus on increased production yield and the use of recycled materials was
instrumental to generating the operating improvements achieved.
Selling, general and administrative expenses were $22.6 million in the fourth
quarter of 2012 compared to $18.6 million in the same period of the prior year.
The increase reflects higher labor costs related to the increase in variable
pay expenses for the improved performance along with lower expense in the fourth
quarter of 2011 due to the benefit of a $1.0 million favorable bad debt
adjustment.
Operating earnings excluding special items increased to $9.8 million for the
fourth quarter of 2012 from $6.2 million in the prior year fourth quarter
representing the impacts of the Company's turnaround efforts, shift to higher
margin business and production efficiencies.
Interest expense, net of interest income, was $2.7 million in the fourth quarter
of 2012 compared to $2.9 million in the fourth quarter of 2011.
Income tax expense was $0.3 million in the fourth quarter of 2012 compared to a
$10.4 million benefit in the fourth quarter of 2011. The effective tax rate for
the fourth quarter of 2012 reflects a minimum tax in a foreign jurisdiction. The
effective tax rate for the fourth quarter of 2011 reflects the non-deductibility
of a portion of the goodwill impairment charges reflected in the period.
Net loss from continuing operations was $0.6 million in the fourth quarter of
2012 compared to a $27.4 million net loss in 2011. Net loss from continuing
operations per diluted share was $0.02 in 2012 compared to a loss of $0.89 in
2011. Excluding special items, net earnings from continuing operations was $4.2
million or $0.14 per diluted share for the fourth quarter of 2012, compared to
net earnings of $1.4 million or $0.05 per diluted share in the same period of
the prior year.
Cash flows from operations were $15.2 million for the fourth quarter of 2012
which included a $2.2 million increase in working capital. In 2012 the Company
utilized cash flows from operations to pay down $22.5 million of debt and fund
$20.0 million of capital investments resulting in total debt of $134.9 million
at the end of the year.
Segment Results
The results of our three operating segments are discussed below. A table is
presented at the end of this release to reconcile amounts excluding special
items to comparable GAAP measures.
Custom Sheet & Rollstock - Net sales were $153.2 million for the three months
ended November 3, 2012, a 2% increase over the same period of the prior year
which consisted of a 6% decrease from price/mix offset by a 8% increase in
volume. The price/mix decrease was mostly caused by decreases in selling prices
from the pass through of lower raw materials costs. The increase in underlying
volume is attributable to increases in material handling applications,
commercial construction and custom thermoforming end markets. Operating
earnings excluding special items were $10.8 million for the three months ended
November 3, 2012 compared to $5.5 million for the three months ended October 29,
2011. The increase in operating earnings excluding special items can be
attributed to higher volume and operating improvements such as increased
production yield and regrind material usage, which were slightly offset by
increased costs related to labor and variable pay for the improved performance.
Packaging Technologies - Net sales were $61.2 million for the three months ended
November 3, 2012, a 6% decrease from the prior year period which consisted
primarily of lower volume in graphic arts sales related to certain programs not
continuing in 2012. Operating earnings excluding special items were $5.1
million for the three months ended November 3, 2012 compared to $5.7 million for
the three months ended October 29, 2011. The decrease in operating earnings can
be attributable to the lower sales volume. This segment continued to make
progress in commercializing new customer programs during the quarter.
Color & Specialty Compounds - Net sales were $72.4 million for the three months
ended November 3, 2012, a 7% decrease from the prior year period. These results
represented an 11% decrease from price/mix partially offset by a 4% increase in
volume. The price/mix decrease was mostly attributable to lower selling prices
from the pass through of lower raw materials costs. The increase in underlying
volume was due to increase in sales to the agricultural, distribution, and the
automotive sectors. Operating earnings excluding special items were $2.9
million for the three months ended November 3, 2012 compared to operating
earnings of $2.1 million in the same period of the prior year. The increase in
operating earnings reflects the increase in sales volume and benefits from
improvements on our key operating priorities.
Outlook
The Company gained momentum on its key priorities and turnaround efforts in
2012 which provided for the improved results and established a stronger
foundation for future earnings growth. We expect to continue to build on this
foundation and execute on our growth strategy which focuses on shifting our
product mix towards more specialized and higher margin products. We expect
continued improvements from our turnaround efforts in our Color and Specialty
Compounds and Custom Sheet and Rollstock segments. The Packaging Technologies
segment is positioned to capitalize on its expanded customer base in 2013. While
recent customer order patterns have remained stable and resin costs have
experienced downward pressure, slow and uncertain demand in the markets we serve
and dynamic raw material costs may impact our financial results in future
periods. We expect low to moderate sales volume growth in 2013 as well as
higher selling prices and a continued shift in mix to higher margin business
which should result in solid improvement in our results for the full year 2013
compared to 2012. We remain committed to providing value to our stockholders
through the completion of our turnaround strategy, the shift of mix to more
specialty products, and focus on sustainable growth.
Special Items and Discontinued Operations
In October of 2012, Spartech announced that it had entered into a definitive
merger agreement under which PolyOne Corporation will acquire all the
outstanding shares of Spartech. In order to enter into the agreement and effect
the merger, Spartech has incurred various costs triggered by and directly
related to the merger transaction. In the fourth quarter of 2012, Spartech
recognized $6.9 million of merger and transaction costs, including stock
compensation expense from the acceleration of vesting of all outstanding equity
security awards, legal and financial advisor fees, and other costs directly
related to the proposed merger transaction.
Restructuring and exit costs were $1.6 million in the fourth quarter of 2012
compared to $0.6 million in the same period of the prior year. For both
periods, restructuring and exit costs were comprised of employee severance,
facility consolidation and shutdown costs and fixed asset valuation adjustments.
These costs resulted from the Company's improvement initiatives, which include
an objective of reducing the Company's fixed portion of its cost structure. The
Company currently has two projects that are ongoing: the final stages of
consolidation of its Cornwall, Ontario Custom Sheet and Rollstock facility and
the initiation of consolidating its Stratford, Ontario Color and Specialty
Compounds operation.
During the fourth quarter of 2011, the Company completed its annual goodwill
impairment test and recorded $40.5 million of non-cash goodwill impairments. We
concluded that the carrying amount of goodwill was impaired due to differences
between the Company's fair value and book value of our Custom Sheet and
Rollstock segment.
**********
Spartech will hold a conference call with investors and financial analysts at
11:00 a.m. EST on Friday, December 14, 2012, to discuss Spartech's fourth
quarter 2012 financial results. Prior to this call, the Company will provide
supplemental slides on its website at www.spartech.com (under Presentations in
the Investor Relations menu). Investors can listen to the call live via a
webcast by logging onto www.spartech.com, or via phone by dialing 877-724-7545
and providing the Conference ID #: 40099677. International callers may dial
832-900-4628.
Spartech Corporation is a leading producer of plastic products including
polymeric compounds, concentrates, custom extruded sheet and rollstock products
and packaging technologies for a wide spectrum of customers. The Company's
three business segments, which operate facilities in the United States, Mexico,
Canada, and France, annually process approximately one billion pounds of plastic
resins, specialty plastic alloys, and color and specialty compounds.
Cautionary Statements Concerning Forward-Looking Statements
Statements in this press release that are not purely historical, including
statements that express the Company's belief, anticipation or expectation about
future events, are forward-looking statements. "Forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
relate to future events and expectations and include statements containing such
words as "anticipates," "believes," "estimates,"
"expects," "would," "should,"
"will," "will likely result," "forecast," "outlook,"
"projects," and similar
expressions. 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 from our forward-looking statements
are as follows:
(a) The announced pending merger with PolyOne could cause disruptions in the
business
(b) Uncertainty of the merger may cause customers, suppliers, employees, or
strategic partners to delay or make different decisions about their relationship
with the Company
(c) Required approvals and lawsuits challenging the merger could delay or
prevent the closing of the merger
(d) Problems may arise in the integration of the businesses of PolyOne and the
Company or the transaction may result in unexpected costs to merge the two
companies
(e) Adverse changes in economic or industry conditions, including global
supply and demand conditions and prices for products of the types we produce
(f) Our ability to compete effectively on product performance, quality, price,
availability, product development, and customer service
(g) Adverse changes in the markets we serve, including the packaging,
transportation, building and construction, recreation and leisure, and other
markets, some of which tend to be cyclical
(h) Volatility of prices and availability of supply of energy and raw
materials that are critical to the manufacture of our products, particularly
plastic resins derived from oil and natural gas, including future impacts of
natural disasters
(i) Our inability to manage or pass through to customers an adequate level of
increases in the costs of materials, freight, utilities, or other conversion
costs
(j) Our inability to achieve and sustain the level of cost savings,
productivity improvements, gross margin enhancements, growth or other benefits
anticipated from our improvement initiatives
(k) Our inability to collect all or a portion of our receivables with large
customers or a number of customers
(l) Loss of business with a limited number of customers that represent a
significant percentage of our revenues
(m) Restrictions imposed on us by instruments governing our indebtedness, the
possible inability to comply with requirements of those instruments and
inability to access capital markets
(n) Possible asset impairments
(o) Our inability to predict accurately the costs to be incurred, time taken
to complete, operating disruptions therefrom, potential loss of business or
savings to be achieved in connection with production plant consolidations and
line moves
(p) Adverse findings in significant legal or environmental proceedings or our
inability to comply with applicable environmental laws and regulations
(q) Our inability to develop and launch new products successfully or without
extensive additional costs
(r) Possible weaknesses in internal controls
We assume no responsibility to update our forward-looking statements.
Spartech Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
Three Months Ended Year Ended
--------------------------- ------------------------------
November 3, October 29, November 3, October 29,
(Dollars in
thousands, except
per share data) 2012 2011 2012 2011
------------------------------------------------ ------------------------------
Net sales $ 286,803 $ 293,239 $ 1,149,355 $ 1,102,290
Costs and expenses
Cost of sales 254,067 268,026 1,037,991 1,004,928
Selling, general and
administrative
expenses 22,558 18,613 85,228 74,540
Foreign exchange
(gains)/losses (1,219 ) (21 ) (588 ) (220 )
Amortization of
intangibles 422 422 1,689 1,689
Goodwill impairments - 40,455 - 40,455
Merger and
transaction costs 6,901 - 6,901 -
Restructuring and
exit costs 1,624 634 2,521 2,184
------------------------------------------------ ------------------------------
Total costs and
expenses 284,353 328,129 1,133,742 1,123,576
------------------------------------------------ ------------------------------
Operating earnings
(loss) 2,450 (34,890 ) 15,613 (21,286 )
Interest, net of
interest income 2,745 2,905 11,875 10,947
(Loss) earnings from
continuing
operations before
income taxes (295 ) (37,795 ) 3,738 (32,233 )
Income tax expense
(benefit) 260 (10,415 ) 1,051 (8,850 )
------------------------------------------------ ------------------------------
Net (loss) earnings
from continuing
operations (555 ) (27,380 ) 2,687 (23,383 )
Net (loss) earnings
from discontinued
operations, net of
tax (109 ) (349 ) (91 ) 2,316
------------------------------------------------ ------------------------------
Net (loss) earnings $ (664 ) $ (27,729 ) $ 2,596 $ (21,067 )
------------------------------------------------ ------------------------------
Basic (loss)
earnings per share:
(Loss) earnings from
continuing
operations $ (0.02 ) $ (0.89 ) $ 0.09 $ (0.76 )
(Loss) earnings from
discontinued
operations, net of
tax (0.01 ) (0.01 ) (0.01 ) 0.08
------------------------------------------------ ------------------------------
Net (loss) earnings
per share $ (0.03 ) $ (0.90 ) $ 0.08 $ (0.69 )
------------------------------------------------ ------------------------------
Diluted (loss)
earnings per share:
(Loss) earnings from
continuing
operations $ (0.02 ) $ (0.89 ) $ 0.09 $ (0.76 )
(Loss) earnings
from discontinued
operations, net of
tax (0.01 ) (0.01 ) (0.01 ) 0.08
------------------------------------------------ ------------------------------
Net (loss) earnings
per share $ (0.03 ) $ (0.90 ) $ 0.08 $ (0.69 )
------------------------------------------------ ------------------------------
Spartech Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
November 3, October 29,
(Dollars in thousands, except share data) 2012 2011
-------------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 1,092 $ 877
Trade receivables, net of allowances of $3,341 and
$2,437, respectively 150,566 156,432
Inventories, net of inventory reserves of $9,534 and
$9,152, respectively 105,099 91,186
Prepaid expenses and other current assets, net 24,855 26,367
Assets held for sale 2,614 2,744
-------------------------------------------------------------------------------
Total current assets 284,226 277,606
Property, plant, and equipment, net 197,373 208,074
Goodwill 47,466 47,466
Other intangible assets, net 11,182 12,872
Other long-term assets 4,386 3,684
-------------------------------------------------------------------------------
Total assets $ 544,633 $ 549,702
-------------------------------------------------------------------------------
Liabilities and shareholders' equity
Current liabilities:
Current maturities of long-term debt $ 22,636 $ 25,211
Accounts payable 141,937 140,628
Accrued liabilities 39,088 30,919
-------------------------------------------------------------------------------
Total current liabilities 203,661 196,758
Long-term debt, less current maturities 112,288 132,000
Other long-term liabilities:
Deferred taxes 41,960 41,676
Other long-term liabilities 6,739 6,336
-------------------------------------------------------------------------------
Total liabilities 364,648 376,770
Stockholders' equity
Preferred stock (authorized: 4,000,000 shares, par
value $1.00)
Issued: None - -
Common stock (authorized: 55,000,000 shares, par
value $0.75)
Issued: 33,131,846 shares; outstanding: 30,801,994
and 30,831,919 shares, respectively 24,849 24,849
Contributed capital 203,092 201,945
Retained earnings (accumulated loss) (8,435 ) (11,031 )
Treasury stock, at cost, 2,329,852 and 2,299,927
shares, respectively (44,481 ) (49,286 )
Accumulated other comprehensive income 4,960 6,455
-------------------------------------------------------------------------------
Total stockholders' equity 179,985 172,932
-------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 544,633 $ 549,702
-------------------------------------------------------------------------------
Spartech Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Dollars in thousands) 2012 2011 2010
-------------------------------------------------------------------------------
Cash flows from operating activities
Net earnings (loss) $ 2,596 $ (21,067 ) $ (50,375 )
Adjustments to reconcile net earnings
(loss) to net cash provided by operating
activities:
Depreciation and amortization 31,641 32,824 36,632
Merger and transaction costs
Stock-based compensation expense 6,476 2,255 3,107
Goodwill impairment - 40,455 56,424
Other intangible and fixed asset
impairments - - 13,674
Restructuring and exit costs 2,068 865 2,849
Loss (gain) on disposition of assets,
net 209 232 (1,116 )
Provision (benefit) for bad debt expense 1,290 (1,925 ) 8,111
Deferred taxes 1,349 (5,139 ) (22,067 )
Change in current assets and
liabilities:
Trade Receivables 4,237 (19,424 ) (12,175 )
Inventories (14,181 ) (11,374 ) (16,467 )
Prepaid expenses and other current
assets 1,396 12,926 2,868
Accounts payable 1,021 13,668 24,283
Accrued liabilities 5,976 (3,091 ) (5,837 )
Other, net 195 1,093 (581 )
-------------------------------------------------------------------------------
Net cash provided by operating
activities 44,273 42,298 39,330
Cash flows from investing activities
Capital expenditures (19,967 ) (29,072 ) (21,432 )
Proceeds from the disposition of assets 154 453 3,560
-------------------------------------------------------------------------------
Net cash used by investing activities (19,813 ) (28,619 ) (17,872 )
Cash flows from financing activities
Bank credit facility borrowings
(payments), net 2,725 (14,199 ) 45,900
Payments on notes and bank term loan (24,705 ) (378 ) (87,582 )
Payments on bonds and leases (488 ) (723 ) (515 )
Debt issuance costs (1,660 ) (1,558 ) (1,174 )
Stock-based compensation exercised (107 ) (295 ) (194 )
-------------------------------------------------------------------------------
Net cash used by financing activities (24,235 ) (17,153 ) (43,565 )
Effect of exchange rates on cash and
cash equivalents (10) (549 ) 82
-------------------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents 215 (4,023 ) (22,025 )
Cash and cash equivalents at beginning
of year 877 4,900 26,925
-------------------------------------------------------------------------------
Cash and cash equivalents at end of year $ 1,092 $ 877 $ 4,900
-------------------------------------------------------------------------------
Non-GAAP Reconciliations
Within this press release we have included operating earnings (loss) (GAAP) to
operating earnings (loss) excluding special items (Non-GAAP), net earnings
(loss) from continuing operations (GAAP) to net earnings (loss) from continuing
operations excluding special items (Non-GAAP) and net earnings (loss) from
continuing operations per diluted share (GAAP) to net earnings (loss) from
continuing operations per diluted share excluding special items (Non-GAAP).
Special items include foreign exchange (gains)/losses, goodwill impairments,
restructuring and exit costs, and merger and transaction costs. We have also
excluded the operations of our discontinued wheels, profiles, marine, Donchery
sheet and Arlington, Texas compounding operations throughout this press release
and in the presentation below.
We use these measurements to assess our ongoing operating results without the
effect of these adjustments and compare such results to our historical and
planned operating results. We believe these measurements are useful to help
investors to compare our results to previous periods and provide an indication
of underlying trends in the business. Such non-GAAP measurements are not
recognized in accordance with generally accepted accounting principles (GAAP)
and should not be viewed as an alternative to GAAP measures of performance.
The following tables reconcile (GAAP) to (Non-GAAP) measures:
Three Months Ended Year Ended
----------------------------------------------------
November 3, October 29, November 3, October 29,
(Dollars in thousands,
except per share data) 2012 2011 2012 2011
----------------------------------------------------
Operating earnings (loss)
(GAAP) $ 2,450 $ (34,890 ) $ 15,613 $ (21,286 )
Goodwill impairment - 40,455 - 40,455
Restructuring and exit
costs 1,624 634 2,521 2,184
Merger and transaction
costs 6,901 - 6,901 -
Foreign exchange
(gains)/losses (1,219 ) (22 ) (588 ) (220 )
-------------------------------------------------------------------------------
Special items subtotal 7,306 41,067 8,834 42,419
-------------------------------------------------------------------------------
Operating earnings
excluding special items
(Non-GAAP) $ 9,756 $ 6,177 $ 24,447 $ 21,133
-------------------------------------------------------------------------------
Net (loss) earnings from
continuing operations
(GAAP) $ (555 ) $ (27,380 ) $ 2,687 $ (23,383 )
Goodwill impairment, net
of tax - 28,435 - 28,435
Restructuring and exit
costs, net of tax 1,202 393 1,866 1,354
Merger and transaction
costs, net of tax 4,486 - 4,486 -
Foreign exchange
(gains)/losses, net of tax (902 ) (15 ) (435 ) (154 )
-------------------------------------------------------------------------------
Special items subtotal 4,786 28,813 5,917 29,635
-------------------------------------------------------------------------------
Net earnings from
continuing operations
excluding special items
(Non-GAAP) $ 4,231 $ 1,433 $ 8,604 $ 6,252
-------------------------------------------------------------------------------
Net (loss) earnings from
continuing operations per
diluted share (GAAP) $ (0.02 ) $ (0.89 ) $ 0.09 $ (0.76 )
Goodwill impairment, net
of tax - 0.93 - 0.93
Restructuring and exit
costs, net of tax 0.04 0.01 0.06 0.04
Merger and transaction
costs, net of tax 0.15 - 0.15 -
Foreign exchange
(gains)/losses, net of tax (0.03 ) - (0.02 ) (0.01 )
-------------------------------------------------------------------------------
Special items subtotal 0.16 0.94 0.19 0.96
-------------------------------------------------------------------------------
Net earnings from
continuing operations per
diluted share excluding
special items (Non-GAAP) $ 0.14 $ 0.05 $ 0.28 $ 0.20
-------------------------------------------------------------------------------
The following table reconciles operating (loss) earnings (GAAP) to operating
earnings (loss) excluding special items (Non-GAAP) by segment (in thousands):
Year Ended Year Ended
November 3, 2012 October 29, 2011
------------------------------------- -------------------------------------
Operating Special Operating Operating Special
Operating
Earnings Items Earnings Earnings Items Earnings
Segment (Loss) (Loss) (Loss) (Loss)
(GAAP) Excluding (GAAP) Excluding
(Non-GAAP) (Non-
Special GAAP)
Items Special
Items
-------------------------------------------------- -------------------------------------
Custom Sheet $ 10,662 $ 157 $ 10,819 $ (35,205 ) $ 40,691 $
5,486
and
Rollstock
Packaging 5,095 - 5,095 5,725 -
5,725
Technologies
Color & 1,470 1,468 2,938 1,737 397
2,134
Specialty
Compounds
Corporate (14,777 ) 5,681 (9,096 ) (7,147 ) (21 ) (7,168
)
-------------------------------------------------- -------------------------------------
Total $ 2,450 $ 7,306 $ 9,756 $ (34,890 ) $ 41,067 $
6,177
-------------------------------------------------- -------------------------------------
Year Ended Year Ended
November 3, 2012 October 29, 2011
------------------------------------- --------------------------------------
Operating Special Operating Operating Special
Operating
Earnings Items Earnings Earnings Items Earnings
Segment (Loss) (Loss) (Loss) (Loss)
(GAAP) Excluding (GAAP) Excluding
(Non-GAAP) (Non-GAAP)
Special Special
Items Items
-------------------------------------------------- --------------------------------------
Custom Sheet $ 29,342 $ 1,054 $ 30,396 $ (16,145 ) $ 41,064 $
24,919
and
Rollstock
Packaging 18,006 - 18,006 23,580 247
23,827
Technologies
Color & 7,544 1,467 9,011 2,000 1,322
3,322
Specialty
Compounds
Corporate (39,279 ) 6,313 (32,966 ) (30,721 ) (214 ) (30,935
)
-------------------------------------------------- --------------------------------------
Total $ 15,613 $ 8,834 $ 24,447 $ (21,286 ) $ 42,419 $
21,133
-------------------------------------------------- --------------------------------------
Company Contacts:
Victoria M. Holt
President and Chief Executive Officer
(314) 721-4242
Randy C. Martin
Executive Vice President and Chief Financial Officer
(314) 721-4242
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Spartech Corporation via Thomson Reuters ONE
[HUG#1664552]
