Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K ASHLAND INC. - ASHLAND LLC | form8k.htm |
| EX-99.1 - ASHLAND SPECIALTY INGREDIENTS - ASHLAND LLC | ex991.htm |
EXHIBIT 99.2
Within the following tables, Ashland has disclosed “EBITDA” and “Adjusted EBITDA” results. Such measurements are not prepared in accordance with U.S. GAAP and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. Management believes the use of non-GAAP measures on a consolidated and business segment basis assists investors in understanding the ongoing operating performance by presenting comparable financial results between periods. The non-GAAP information provided is used by Ashland management and may not be determined in a manner consistent with the methodologies used by other companies. “EBITDA” and “Adjusted EBITDA” provide a supplemental presentation of Ashland’s operating performance on a consolidated and business segment basis. The appendix following these tables includes a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.
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Ashland Performance Materials
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(In millions except percent data - preliminary and unaudited)
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Six months ended March 31, 2014
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 728 | $ | 51 | $ | 779 | ||||||
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Gross profit as a percent of sales
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15.0 | % | -3.0 | % | 12.0 | % | ||||||
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Operating loss
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(15 | ) | (7 | ) | (22 | ) | ||||||
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EBITDA
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11 | 4 | 15 | |||||||||
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Adjusted EBITDA
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77 | 4 | 81 | |||||||||
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Quarter ended December 31, 2013
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 347 | $ | 18 | $ | 365 | ||||||
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Gross profit as a percent of sales
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17.3 | % | -3.9 | % | 13.4 | % | ||||||
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Operating income
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20 | (6 | ) | 14 | ||||||||
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EBITDA
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34 | (1 | ) | 33 | ||||||||
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Adjusted EBITDA
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34 | (1 | ) | 33 | ||||||||
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Quarter ended March 31, 2014
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 380 | $ | 33 | $ | 413 | ||||||
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Gross profit as a percent of sales
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13.1 | % | -2.4 | % | 10.7 | % | ||||||
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Operating loss
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(35 | ) | - | (35 | ) | |||||||
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EBITDA
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(23 | ) | 6 | (17 | ) | |||||||
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Adjusted EBITDA
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43 | 6 | 49 | |||||||||
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(a)
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Reflects the net impact of the Intermediates and Solvents division into and Adhesives division out of Ashland Performance Materials. The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income (loss) offset by the change in depreciation and amortization expense. No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
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| (b) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
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Ashland Performance Materials
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(In millions except percent data - preliminary and unaudited)
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Year ended September 30, 2013
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 1,479 | $ | 138 | $ | 1,617 | ||||||
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Gross profit as a percent of sales
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14.9 | % | 0.0 | % | 14.9 | % | ||||||
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Operating income
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68 | 38 | 106 | |||||||||
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EBITDA
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120 | 59 | 179 | |||||||||
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Adjusted EBITDA
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122 | 59 | 181 | |||||||||
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Quarter ended December 31, 2012
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 345 | $ | 41 | $ | 386 | ||||||
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Gross profit as a percent of sales
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15.6 | % | 0.4 | % | 16.0 | % | ||||||
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Operating income
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13 | 12 | 25 | |||||||||
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EBITDA
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26 | 17 | 43 | |||||||||
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Adjusted EBITDA
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28 | 17 | 45 | |||||||||
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Quarter ended March 31, 2013
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 374 | $ | 42 | $ | 416 | ||||||
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Gross profit as a percent of sales
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14.6 | % | 0.2 | % | 14.8 | % | ||||||
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Operating income
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21 | 12 | 33 | |||||||||
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EBITDA
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33 | 17 | 50 | |||||||||
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Adjusted EBITDA
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33 | 17 | 50 | |||||||||
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Quarter ended June 30, 2013
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 395 | $ | 43 | $ | 438 | ||||||
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Gross profit as a percent of sales
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14.2 | % | -1.2 | % | 13.0 | % | ||||||
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Operating income
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17 | 5 | 22 | |||||||||
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EBITDA
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30 | 10 | 40 | |||||||||
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Adjusted EBITDA
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30 | 10 | 40 | |||||||||
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Quarter ended September 30, 2013
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 366 | $ | 11 | $ | 377 | ||||||
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Gross profit as a percent of sales
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15.2 | % | 0.8 | % | 16.0 | % | ||||||
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Operating income
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16 | 10 | 26 | |||||||||
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EBITDA
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29 | 15 | 44 | |||||||||
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Adjusted EBITDA
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29 | 15 | 44 | |||||||||
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(a)
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Reflects the net impact of the Intermediates and Solvents division into and Adhesives division out of Ashland Performance Materials. The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income offset by the change in depreciation and amortization expense. No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
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| (b) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
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Ashland Performance Materials
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(In millions except percent data - preliminary and unaudited)
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Year ended September 30, 2012
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 1,560 | $ | 179 | $ | 1,739 | ||||||
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Gross profit as a percent of sales
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16.6 | % | 0.6 | % | 17.2 | % | ||||||
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Operating income
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99 | 58 | 157 | |||||||||
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EBITDA
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148 | 80 | 228 | |||||||||
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Adjusted EBITDA
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159 | 80 | 239 | |||||||||
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Quarter ended September 30, 2012
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Realignment
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As Reported (b)
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net impact (a)
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As Amended (b)
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Sales
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$ | 369 | $ | 34 | $ | 403 | ||||||
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Gross profit as a percent of sales
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14.3 | % | -0.2 | % | 14.1 | % | ||||||
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Operating income
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8 | 8 | 16 | |||||||||
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EBITDA
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20 | 13 | 33 | |||||||||
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Adjusted EBITDA
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31 | 13 | 44 | |||||||||
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(a)
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Reflects the net impact of the Intermediates and Solvents division into and Adhesives division out of Ashland Performance Materials. The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income offset by the change in depreciation and amortization expense. No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
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| (b) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
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APPENDIX TO EXHIBIT 99.2
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Ashland Performance Materials
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RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
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(In millions except percent data - preliminary and unaudited)
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Six months ended March 31, 2014
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As Reported (a)
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As Amended (a)
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Operating loss
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$ | (15 | ) | $ | (22 | ) | ||
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Depreciation and amortization (b)
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26 | 37 | ||||||
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EBITDA
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11 | 15 | ||||||
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Impairment of ASK joint venture
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46 | 46 | ||||||
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Severance
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13 | 13 | ||||||
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Accelerated depreciation and other plant closure costs
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7 | 7 | ||||||
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Adjusted EBITDA
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$ | 77 | $ | 81 | ||||
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Quarter ended December 31, 2013
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 20 | $ | 14 | ||||
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Depreciation and amortization
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14 | 19 | ||||||
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EBITDA
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$ | 34 | $ | 33 | ||||
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Quarter ended March 31, 2014
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As Reported (a)
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As Amended (a)
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Operating loss
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$ | (35 | ) | $ | (35 | ) | ||
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Depreciation and amortization (b)
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12 | 18 | ||||||
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EBITDA
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(23 | ) | (17 | ) | ||||
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Impairment of ASK joint venture
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46 | 46 | ||||||
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Severance
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13 | 13 | ||||||
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Accelerated depreciation and other plant closure costs
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7 | 7 | ||||||
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Adjusted EBITDA
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$ | 43 | $ | 49 | ||||
| (a) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
|
| (b) |
Depreciation and amortization excludes $7 million of accelerated depreciation for Performance Materials for the three and six months ended March 31, 2014, which is displayed as key items within this table.
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Ashland Performance Materials
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RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
|
||||||||
|
(In millions except percent data - preliminary and unaudited)
|
||||||||
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Year ended September 30, 2013
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 68 | $ | 106 | ||||
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Depreciation and amortization (b)
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52 | 73 | ||||||
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EBITDA
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120 | 179 | ||||||
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Accelerated depreciation and other plant closure costs
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2 | 2 | ||||||
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Adjusted EBITDA
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$ | 122 | $ | 181 | ||||
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Quarter ended December 31, 2012
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 13 | $ | 25 | ||||
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Depreciation and amortization (b)
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13 | 18 | ||||||
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EBITDA
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26 | 43 | ||||||
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Accelerated depreciation and other plant closure costs
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2 | 2 | ||||||
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Adjusted EBITDA
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$ | 28 | $ | 45 | ||||
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Quarter ended March 31, 2013
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 21 | $ | 33 | ||||
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Depreciation and amortization
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12 | 17 | ||||||
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EBITDA
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$ | 33 | $ | 50 | ||||
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Quarter ended June 30, 2013
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 17 | $ | 22 | ||||
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Depreciation and amortization
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13 | 18 | ||||||
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EBITDA
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$ | 30 | $ | 40 | ||||
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Quarter ended September 30, 2013
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 16 | $ | 26 | ||||
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Depreciation and amortization
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13 | 18 | ||||||
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EBITDA
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$ | 29 | $ | 44 | ||||
| (a) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
|
| (b) |
Depreciation and amortization excludes $2 million of accelerated depreciation for Performance Materials for the three months ended December 31, 2012 and the year ended September 30, 2013, which is displayed as key items within this table.
|
|
RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
|
||||||||
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(In millions except percent data - preliminary and unaudited)
|
||||||||
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Year ended September 30, 2012
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 99 | $ | 157 | ||||
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Depreciation and amortization (b)
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49 | 71 | ||||||
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EBITDA
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148 | 228 | ||||||
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Severance
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7 | 7 | ||||||
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Accelerated depreciation and other plant closure costs
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4 | 4 | ||||||
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Adjusted EBITDA
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$ | 159 | $ | 239 | ||||
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Quarter ended September 30, 2012
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As Reported (a)
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As Amended (a)
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Operating income
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$ | 8 | $ | 16 | ||||
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Depreciation and amortization (b)
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12 | 17 | ||||||
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EBITDA
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20 | 33 | ||||||
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Severance
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7 | 7 | ||||||
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Accelerated depreciation and other plant closure costs
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4 | 4 | ||||||
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Adjusted EBITDA
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$ | 31 | $ | 44 | ||||
| (a) |
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
|
| (b) |
Depreciation and amortization excludes $3 million of accelerated depreciation for Performance Materials for the three months ended September 30, 2012 and the year ended September 30, 2012, which is displayed as key items within this table.
|