o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | OM Group, Inc. fourth quarter 2013 press release, dated February 13, 2014. |
OM Group, Inc. | ||||
(Registrant) | ||||
Date: February 13, 2014 | /s/ Christopher M. Hix | |||
Name: | Christopher M. Hix | |||
Title: | Vice President and Chief Financial Officer | |||
OM Group, Inc. and Subsidiaries | ||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
(in millions) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 118.4 | $ | 227.6 | ||||
Restricted cash on deposit | — | 22.8 | ||||||
Accounts receivable, net | 150.7 | 160.1 | ||||||
Inventories | 240.9 | 452.7 | ||||||
Other current assets | 32.3 | 43.2 | ||||||
Current assets - discontinued operations (excluding cash) | — | 33.2 | ||||||
Total current assets | 542.3 | 939.6 | ||||||
Property, plant and equipment, net | 345.6 | 474.3 | ||||||
Goodwill | 432.7 | 528.3 | ||||||
Intangible assets, net | 403.0 | 417.1 | ||||||
Other non-current assets | 59.5 | 86.9 | ||||||
Non-current assets - discontinued operations | — | 53.2 | ||||||
Total assets | $ | 1,783.1 | $ | 2,499.4 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | — | $ | 13.3 | ||||
Accounts payable | 93.6 | 117.0 | ||||||
Liability related to joint venture partner injunction | — | 22.8 | ||||||
Accrued income taxes | 4.2 | 23.9 | ||||||
Accrued employee costs | 36.2 | 46.6 | ||||||
Purchase price of VAC payable to seller | 52.5 | 75.4 | ||||||
Other current liabilities | 59.2 | 59.6 | ||||||
Current liabilities - discontinued operations | — | 20.7 | ||||||
Total current liabilities | 245.7 | 379.3 | ||||||
Long-term debt | — | 454.1 | ||||||
Deferred income taxes | 102.5 | 117.7 | ||||||
Pension liabilities | 220.5 | 232.9 | ||||||
Purchase price of VAC payable to seller | 11.3 | 11.3 | ||||||
Other non-current liabilities | 43.3 | 55.1 | ||||||
Non-current liabilities - discontinued operations | — | 4.7 | ||||||
Stockholders’ equity: | ||||||||
Total OM Group, Inc. stockholders’ equity | 1,159.8 | 1,206.9 | ||||||
Noncontrolling interests | — | 37.4 | ||||||
Total equity | 1,159.8 | 1,244.3 | ||||||
Total liabilities and equity | $ | 1,783.1 | $ | 2,499.4 | ||||
OM Group, Inc. and Subsidiaries | ||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales | $ | 270.5 | $ | 317.2 | $ | 1,157.5 | $ | 1,544.4 | ||||||||
Cost of goods sold | 215.9 | 290.7 | 899.1 | 1,300.8 | ||||||||||||
Gross profit | 54.6 | 26.5 | 258.4 | 243.6 | ||||||||||||
Selling, general and administrative expenses | 48.7 | 62.1 | 217.3 | 251.2 | ||||||||||||
Gain on sale of property | — | — | — | 2.9 | ||||||||||||
Operating profit (loss) | 5.9 | (35.6 | ) | 41.1 | (4.7 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (1.0 | ) | (9.1 | ) | (11.3 | ) | (43.2 | ) | ||||||||
Accelerated amortization of deferred financing fees | — | (5.3 | ) | (1.0 | ) | (6.5 | ) | |||||||||
Foreign exchange gain (loss) | 3.3 | 1.0 | 8.0 | (0.8 | ) | |||||||||||
Gain (loss) on divestiture of Advanced Materials business | 0.5 | — | (111.6 | ) | — | |||||||||||
Other, net | 12.9 | 4.8 | 12.0 | 6.6 | ||||||||||||
Income (loss) from continuing operations before income tax expense | 21.6 | (44.2 | ) | (62.8 | ) | (48.6 | ) | |||||||||
Income tax expense (benefit) | 4.3 | (4.7 | ) | 10.7 | (3.2 | ) | ||||||||||
Income (loss) from continuing operations, net of tax | 17.3 | (39.5 | ) | (73.5 | ) | (45.4 | ) | |||||||||
Loss from discontinued operations, net of tax | (0.1 | ) | (0.7 | ) | (12.3 | ) | (0.4 | ) | ||||||||
Consolidated net income (loss) | 17.2 | (40.2 | ) | (85.8 | ) | (45.8 | ) | |||||||||
Net loss attributable to noncontrolling interests | — | 6.3 | 1.8 | 7.1 | ||||||||||||
Net income (loss) attributable to OM Group, Inc. common stockholders | $ | 17.2 | $ | (33.9 | ) | $ | (84.0 | ) | $ | (38.7 | ) | |||||
Earnings (loss) per common share — basic: | ||||||||||||||||
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders | $ | 0.54 | $ | (1.05 | ) | $ | (2.27 | ) | $ | (1.21 | ) | |||||
Loss from discontinued operations attributable to OM Group, Inc. common stockholders | — | (0.02 | ) | (0.39 | ) | (0.01 | ) | |||||||||
Net income (loss) attributable to OM Group, Inc. common stockholders | $ | 0.54 | $ | (1.07 | ) | $ | (2.66 | ) | $ | (1.22 | ) | |||||
Earnings (loss) per common share — assuming dilution: | ||||||||||||||||
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders | $ | 0.54 | $ | (1.05 | ) | $ | (2.27 | ) | $ | (1.21 | ) | |||||
Loss from discontinued operations attributable to OM Group, Inc. common stockholders | — | (0.02 | ) | (0.39 | ) | (0.01 | ) | |||||||||
Net income (loss) attributable to OM Group, Inc. common stockholders | $ | 0.54 | $ | (1.07 | ) | $ | (2.66 | ) | $ | (1.22 | ) | |||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 31.5 | 31.9 | 31.6 | 31.9 | ||||||||||||
Assuming dilution | 31.8 | 31.9 | 31.6 | 31.9 | ||||||||||||
Amounts attributable to OM Group, Inc. common stockholders: | ||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 17.3 | $ | (33.2 | ) | $ | (71.7 | ) | $ | (38.3 | ) | |||||
Income (loss) from discontinued operations, net of tax | (0.1 | ) | (0.7 | ) | (12.3 | ) | (0.4 | ) | ||||||||
Net income (loss) | $ | 17.2 | $ | (33.9 | ) | $ | (84.0 | ) | $ | (38.7 | ) | |||||
Certain financial data may have been rounded. As a result of such rounding, the totals of data presented in this document may vary slightly from the actual arithmetical totals of such data. |
OM Group, Inc. and Subsidiaries | |||||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating activities | |||||||||||||||||
Consolidated net income (loss) | $ | 17.2 | $ | (40.2 | ) | $ | (85.8 | ) | $ | (45.8 | ) | ||||||
Adjustments to reconcile consolidated net income (loss) to net cash used for operating activities: | |||||||||||||||||
Loss from discontinued operations | 0.1 | 0.7 | 12.3 | 0.4 | |||||||||||||
Depreciation and amortization | 18.2 | 21.7 | 73.9 | 84.3 | |||||||||||||
Amortization of deferred financing fees | 0.1 | 1.3 | 2.0 | 5.4 | |||||||||||||
Accelerated amortization of deferred financing fees | — | 5.3 | 1.0 | 6.5 | |||||||||||||
Share-based compensation expense | 1.3 | 0.4 | 6.2 | 5.8 | |||||||||||||
Foreign exchange (gain) loss | (3.3 | ) | (0.9 | ) | (8.0 | ) | 0.8 | ||||||||||
Deferred income tax provision (benefit) | (0.4 | ) | (10.2 | ) | 4.7 | (30.2 | ) | ||||||||||
VAC lower of cost or market charges | — | 24.6 | — | 78.4 | |||||||||||||
Loss (gain) on divestiture of Advanced Materials business | (0.5 | ) | — | 111.6 | — | ||||||||||||
Adjustment to contingent consideration | (13.0 | ) | — | (13.0 | ) | — | |||||||||||
Gain on sale of property | — | — | — | (2.9 | ) | ||||||||||||
Other non-cash items | 0.3 | (5.6 | ) | 2.5 | (8.9 | ) | |||||||||||
Changes in operating assets and liabilities, excluding the effect of divestitures: | |||||||||||||||||
Accounts receivable | 2.4 | 31.0 | (22.3 | ) | 39.4 | ||||||||||||
Inventories (a) | 10.8 | (12.3 | ) | 25.0 | 75.7 | ||||||||||||
Accounts payable | 7.2 | 4.1 | 12.5 | (43.0 | ) | ||||||||||||
Refundable, prepaid and accrued income taxes | 5.2 | 35.8 | (19.3 | ) | 41.2 | ||||||||||||
Other, net | (12.5 | ) | (7.8 | ) | (40.4 | ) | 2.4 | ||||||||||
Net cash provided by operating activities | 33.1 | 47.9 | 62.9 | 209.5 | |||||||||||||
Investing activities | |||||||||||||||||
Expenditures for property, plant and equipment | (24.7 | ) | (23.4 | ) | (53.1 | ) | (67.6 | ) | |||||||||
Proceeds from divestiture of Advanced Materials business | — | — | 328.7 | — | |||||||||||||
Proceeds from divestiture of UPC business | — | — | 63.3 | — | |||||||||||||
Cash (paid for) acquisitions or received from purchase adjustments | — | 6.0 | (23.0 | ) | 6.0 | ||||||||||||
Proceeds from sale of property | — | — | — | 5.1 | |||||||||||||
Other, net | (5.0 | ) | — | (5.0 | ) | — | |||||||||||
Net cash provided by (used for) investing activities | (29.7 | ) | (17.4 | ) | 310.9 | (56.5 | ) | ||||||||||
Financing activities | |||||||||||||||||
Payments on long-term debt | — | (130.9 | ) | (466.5 | ) | (213.5 | ) | ||||||||||
Debt issuance costs | (0.4 | ) | — | (2.3 | ) | — | |||||||||||
Proceeds from exercise of stock options | 0.7 | — | 2.8 | — | |||||||||||||
Payment related to surrendered shares | — | — | (0.6 | ) | (0.3 | ) | |||||||||||
Share repurchases | — | — | (14.1 | ) | — | ||||||||||||
Net cash used for financing activities | 0.3 | (130.9 | ) | (480.7 | ) | (213.8 | ) | ||||||||||
Effect of exchange rate changes on cash | (1.7 | ) | 1.0 | 0.6 | 1.4 | ||||||||||||
Cash and cash equivalents | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | 2.0 | (99.4 | ) | (106.3 | ) | (59.4 | ) | ||||||||||
Discontinued operations - net cash provided by (used for) operating activities | (0.1 | ) | 2.9 | (0.5 | ) | (1.0 | ) | ||||||||||
Discontinued operations - net cash used for investing activities | — | (1.3 | ) | (2.4 | ) | (4.1 | ) | ||||||||||
Balance at the beginning of the period | 116.5 | 325.4 | 227.6 | 292.1 | |||||||||||||
Balance at the end of the period | $ | 118.4 | $ | 227.6 | $ | 118.4 | $ | 227.6 | |||||||||
(a) Includes $2.3 million and $18.4 million related to purchase accounting step-up of inventory in the three and twelve months ended December 31, 2012, respectively. |
OM Group, Inc. and Subsidiaries | |||||||||||||||
Unaudited Segment Information | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Sales | |||||||||||||||
Magnetic Technologies | $ | 128.5 | $ | 128.7 | $ | 522.6 | $ | 631.6 | |||||||
Battery Technologies | 35.2 | 31.6 | 150.3 | 143.0 | |||||||||||
Specialty Chemicals (a) | 76.2 | 75.0 | 318.6 | 323.6 | |||||||||||
Advanced Materials | 30.7 | 82.1 | 166.3 | 447.0 | |||||||||||
Intersegment items | (0.1 | ) | (0.2 | ) | (0.3 | ) | (0.8 | ) | |||||||
$ | 270.5 | $ | 317.2 | $ | 1,157.5 | $ | 1,544.4 | ||||||||
Operating profit (loss) | |||||||||||||||
Magnetic Technologies (b)(c) | $ | 5.0 | $ | (22.0 | ) | $ | 22.4 | $ | (22.3 | ) | |||||
Battery Technologies (b) | 2.5 | 1.9 | 21.8 | 19.6 | |||||||||||
Specialty Chemicals (a)(b)(d) | 10.3 | 4.1 | 35.8 | 34.5 | |||||||||||
Advanced Materials | (1.3 | ) | (9.3 | ) | (0.4 | ) | 6.4 | ||||||||
Corporate (b)(e) | (10.6 | ) | (10.3 | ) | (38.5 | ) | (42.9 | ) | |||||||
$ | 5.9 | $ | (35.6 | ) | $ | 41.1 | $ | (4.7 | ) | ||||||
(a) All results related to the UPC business are excluded from the Specialty Chemicals segment for all periods presented. (b) The three and twelve months ended December 31, 2013 include costs related to cost-reduction initiatives of $0.4 million and $5.4 million in Magnetic Technologies and $1.4 million and $2.4 million in Corporate, respectively. The twelve months ended December 31, 2013 include costs related to cost-reduction initiatives of $0.8 million in Battery Technologies and $1.1 million in Specialty Chemicals. (c) The three and twelve months ended December 31, 2012 include inventory step-up and LCM charges of $8.4 million and $55.9 million, respectively, resulting from purchase accounting for the VAC acquisition. (d) The twelve months ended December 31, 2012 includes a $2.9 million property sale gain. (e) The twelve months ended December 31, 2012 include a $2.5 million charge associated with the lump-sum cash settlement to certain participants in one of our U.S. defined benefit pension plans. |
OM Group, Inc. and Subsidiaries | |||||||||||||||||||||||||||
Unaudited Non-U.S. GAAP Financial Measures, Adjusted Operating Profit and Adjusted EBITDA | |||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Magnetic Technologies | Battery Technologies | Specialty Chemicals | Corporate | Subtotal | Advanced Materials | Consolidated | ||||||||||||||||||||
Operating profit (loss) - as reported | $ | 5.0 | $ | 2.5 | $ | 10.3 | $ | (10.6 | ) | $ | 7.2 | $ | (1.3 | ) | $ | 5.9 | |||||||||||
Charges related to cost-reduction initiatives | 0.4 | — | — | 1.4 | 1.8 | — | 1.8 | ||||||||||||||||||||
Adjusted operating profit | 5.4 | 2.5 | 10.3 | (9.2 | ) | 9.0 | (1.3 | ) | 7.7 | ||||||||||||||||||
Depreciation and amortization (a) | 11.6 | 2.5 | 3.7 | 0.2 | 18.0 | — | 18.0 | ||||||||||||||||||||
Adjusted EBITDA | $ | 17.0 | $ | 5.0 | $ | 14.0 | $ | (9.0 | ) | $ | 27.0 | $ | (1.3 | ) | $ | 25.7 | |||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||||||||
(in millions) | Magnetic Technologies | Battery Technologies | Specialty Chemicals | Corporate | Subtotal | Advanced Materials | Consolidated | ||||||||||||||||||||
Operating profit (loss) - as reported | $ | (22.0 | ) | $ | 1.9 | $ | 4.1 | $ | (10.3 | ) | $ | (26.3 | ) | $ | (9.3 | ) | $ | (35.6 | ) | ||||||||
Total VAC inventory purchase accounting step-up and LCM charges | 8.4 | — | — | — | 8.4 | — | 8.4 | ||||||||||||||||||||
Adjusted operating profit | (13.6 | ) | 1.9 | 4.1 | (10.3 | ) | (17.9 | ) | (9.3 | ) | (27.2 | ) | |||||||||||||||
Depreciation and amortization | 10.8 | 2.6 | 3.9 | 0.2 | 17.5 | 4.2 | 21.7 | ||||||||||||||||||||
Adjusted EBITDA | $ | (2.8 | ) | $ | 4.5 | $ | 8.0 | $ | (10.1 | ) | $ | (0.4 | ) | $ | (5.1 | ) | $ | (5.5 | ) | ||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Magnetic Technologies | Battery Technologies | Specialty Chemicals | Corporate | Subtotal | Advanced Materials | Consolidated | ||||||||||||||||||||
Operating profit (loss) - as reported | $ | 22.4 | $ | 21.8 | $ | 35.8 | $ | (38.5 | ) | $ | 41.5 | $ | (0.4 | ) | $ | 41.1 | |||||||||||
Charges related to cost-reduction initiatives | 5.4 | 0.8 | 1.1 | 2.4 | 9.7 | — | 9.7 | ||||||||||||||||||||
Adjusted operating profit | 27.8 | 22.6 | 36.9 | (36.1 | ) | 51.2 | (0.4 | ) | 50.8 | ||||||||||||||||||
Depreciation and amortization (a) | 44.2 | 10.1 | 14.8 | 0.7 | 69.8 | 3.9 | 73.7 | ||||||||||||||||||||
Adjusted EBITDA | $ | 72.0 | $ | 32.7 | $ | 51.7 | $ | (35.4 | ) | $ | 121.0 | $ | 3.5 | $ | 124.5 | ||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
(in millions) | Magnetic Technologies | Battery Technologies | Specialty Chemicals | Corporate | Subtotal | Advanced Materials | Consolidated | ||||||||||||||||||||
Operating profit (loss) - as reported | $ | (22.3 | ) | $ | 19.6 | $ | 34.5 | $ | (42.9 | ) | $ | (11.1 | ) | $ | 6.4 | $ | (4.7 | ) | |||||||||
Total VAC inventory purchase accounting step-up and LCM charges | 55.9 | — | — | — | 55.9 | — | 55.9 | ||||||||||||||||||||
Pension settlement expense | — | — | — | 2.5 | 2.5 | — | 2.5 | ||||||||||||||||||||
Gain on sale of property | — | — | (2.9 | ) | — | (2.9 | ) | — | (2.9 | ) | |||||||||||||||||
Adjusted operating profit | 33.6 | 19.6 | 31.6 | (40.4 | ) | 44.4 | 6.4 | 50.8 | |||||||||||||||||||
Depreciation and amortization | 40.8 | 10.1 | 15.7 | 0.8 | 67.4 | 16.9 | 84.3 | ||||||||||||||||||||
Adjusted EBITDA | $ | 74.4 | $ | 29.7 | $ | 47.3 | $ | (39.6 | ) | $ | 111.8 | $ | 23.3 | $ | 135.1 | ||||||||||||
In order to assist readers of our financial statements in understanding the operating results that the Company's management uses to evaluate the business, we are providing adjusted operating profit and adjusted EBITDA, both of which are non-U.S. GAAP financial measures. The Company's management believes that these are important metrics in evaluating the performance of the Company's business, providing a baseline for evaluating and comparing our operating results and isolating the impact of certain items on our results. The table above presents a reconciliation of the Company's U.S. GAAP operating profit - as reported to adjusted operating profit and adjusted EBITDA. The non-U.S. GAAP financial information set forth in the table above should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. | |||||||||||||||||||||||||||
(a) $0.2 million of accelerated software amortization is included in Corporate charges related to cost-reduction initiatives and excluded from Corporate depreciation and amortization in the table above for the three and twelve months ended December 31, 2013. |
OM Group, Inc. and Subsidiaries | |||||||||||||||
Unaudited Non-U.S. GAAP Financial Measures | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||
(in millions, except per share data) | $ | Diluted EPS | $ | Diluted EPS | |||||||||||
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders - as reported | $ | 17.3 | $ | 0.54 | $ | (33.2 | ) | $ | (1.05 | ) | |||||
Gain on Advanced Materials divestiture | (0.5 | ) | (0.02 | ) | — | — | |||||||||
Charges related to cost-reduction initiatives | 1.8 | 0.06 | — | — | |||||||||||
VAC inventory purchase accounting step-up and lower of cost or market charges | — | — | 8.4 | 0.26 | |||||||||||
EPT escrow settlement | — | — | (6.0 | ) | (0.19 | ) | |||||||||
Acceleration of deferred financing fees | — | — | 5.3 | 0.17 | |||||||||||
Adjustment to contingent consideration | (13.0 | ) | (0.41 | ) | — | — | |||||||||
Tax effect of special items | 2.1 | 0.07 | (2.7 | ) | (0.07 | ) | |||||||||
Adjusted income (loss) from continuing operations attributable to OM Group, Inc. common stockholders | $ | 7.7 | $ | 0.24 | $ | (28.2 | ) | $ | (0.88 | ) | |||||
Exclude: Operating results from divested Advanced Materials business, net of tax | (1.3 | ) | (0.04 | ) | (10.6 | ) | (0.33 | ) | |||||||
Adjusted income (loss) from continuing operations attributable to OM Group, Inc. common stockholders - pro forma excluding Advanced Materials | $ | 9.0 | $ | 0.28 | $ | (17.6 | ) | $ | (0.55 | ) | |||||
Weighted average shares outstanding - diluted (a) | 31.8 | 31.9 | |||||||||||||
Year Ended | Year Ended | ||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||
(in millions, except per share data) | $ | Diluted EPS | $ | Diluted EPS | |||||||||||
Loss from continuing operations attributable to OM Group, Inc. common stockholders - as reported | $ | (71.7 | ) | $ | (2.25 | ) | $ | (38.3 | ) | $ | (1.20 | ) | |||
Loss on Advanced Materials divestiture | 111.6 | 3.51 | — | — | |||||||||||
Charges related to cost-reduction initiatives | 9.7 | 0.30 | — | — | |||||||||||
VAC inventory purchase accounting step-up and lower of cost or market charges | — | — | 55.9 | 1.75 | |||||||||||
Pension settlement expense | — | — | 2.5 | 0.08 | |||||||||||
Gain on sale of property | — | — | (2.9 | ) | (0.09 | ) | |||||||||
Acceleration of deferred financing fees | 1.0 | 0.03 | 6.5 | 0.20 | |||||||||||
Adjustment to contingent consideration | (13.0 | ) | (0.41 | ) | — | — | |||||||||
EPT escrow settlement | — | — | (6.0 | ) | (0.19 | ) | |||||||||
Tax effect of special items | (1.2 | ) | (0.04 | ) | (17.3 | ) | (0.54 | ) | |||||||
Adjusted income from continuing operations attributable to OM Group, Inc. common stockholders | $ | 36.4 | $ | 1.14 | $ | 0.4 | $ | 0.01 | |||||||
Exclude: Operating results from divested Advanced Materials business, net of tax | (1.8 | ) | (0.06 | ) | (3.0 | ) | (0.09 | ) | |||||||
Adjusted income from continuing operations attributable to OM Group, Inc. common stockholders - pro forma excluding Advanced Materials | $ | 38.2 | $ | 1.20 | $ | 3.4 | $ | 0.10 | |||||||
Weighted average shares outstanding - diluted (a) | 31.8 | 32.0 | |||||||||||||
(a) For the twelve months ended December 31, 2013 and three and twelve months ended December 31, 2012, because the reported loss from continuing operations is income on an adjusted basis, we used diluted shares to calculate EPS. Certain financial data may have been rounded. As a result of such rounding, the totals of data presented in this document may vary slightly from the actual arithmetical totals of such data. In order to assist readers of our financial statements in understanding the operating results that the Company's management uses to evaluate the business, we are providing adjusted income from continuing operations attributable to OM Group, Inc. common stockholders and adjusted earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution, both of which are non-U.S. GAAP financial measures. We are also providing the amounts as pro forma adjusted to exclude the results of the divested Advanced Materials business. The Company's management believes that these are important metrics in evaluating the performance of the Company's business, providing a baseline for evaluating and comparing our operating results and isolating the impact of certain items on our results. The table above presents a reconciliation of the Company's U.S. GAAP income from continuing operations attributable to OM Group, Inc. common stockholders - as reported to adjusted income from continuing operations attributable to OM Group, Inc. common stockholders and earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution, adjusted for both special items as identified in the table and to exclude the results of the divested Advanced Materials business. The non-U.S. GAAP financial information set forth in the table above should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. |
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