Attached files
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8-K - FORM 8-K - Integer Holdings Corp | d590262d8k.htm |
Exhibit 99.1
HISTORICAL FINANCIAL INFORMATION |
2017 by Quarter and Total Year - 5 periods
2018 by 1st Quarter - 1 period
GENERAL
∎ | Non-GAAP Financial Information |
∎ | Discontinued Operations Reporting |
∎ | Important Note Regarding Financial Statements |
∎ | Assumptions |
HISTORICAL FINANCIAL INFORMATION PRESENTED
Continuing Operations Statements and GAAP to Non-GAAP Reconciliations
∎ | GAAP Statements of Continuing Operations Trend |
∎ | NON-GAAP Statements of Continuing Operations Trend |
∎ | Sales from Continuing Operations Trend |
∎ | Income from Continuing Operations Reconciliation Trend |
∎ | EBITDA from Continuing Operations Reconciliation Trend |
Bridges To Previously Reported
∎ | GAAP Statement of Operations Detail (6 periods) |
∎ | Statement of Continuing Operations GAAP to NON-GAAP Reconciliation Detail (6 periods) |
∎ | Sales GAAP to Non-GAAP Reconciliation (GAAP & Non-GAAP) (6 periods) |
∎ | Net Income GAAP to Non-GAAP Reconciliation (6 periods) |
∎ | EBITDA GAAP to Non-GAAP Reconciliation (6 periods) |
Page 1 of 39
NON-GAAP FINANCIAL INFORMATION |
The Company uses non-GAAP financial measures, including the measures provided in this presentation, to describe its operating results as well as the effect of the divestiture of the AS&O business which closed on July 2, 2018. Our management team believes that the presentation of these measures provides useful information to investors and that these measures may assist investors in evaluating the Companys operations period over period. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.
Non-GAAP measures include the net impact of the Long-term Supply Agreements (LSA) entered into between the Company and Viant (formerly MedPlast LLC) as of the closing of the divestiture of the Advanced Surgical and Orthopedic product lines. These long term supply agreements govern the sale of products supplied by Viant to the Company for further resale to customers and by the Company to Viant for further resale to customers.
Page 2 of 39
DISCONTINUED OPERATIONS REPORTING |
For disposal transactions, a component of an entity that is anticipated to be sold in the future is reported in discontinued operations after it meets the criteria for held-for-sale classification, and if the disposition represents a strategic shift that has (or will have) a major effect on the entitys operations and financial results. Integer evaluated the quantitative and qualitative factors related to the sale of the AS&O business and concluded that it met the held-for-sale criteria and discontinued operations presentation. The AS&O business financial results are reported within Discontinued Operations in these financial statements.
Interest expense from discontinued operations was computed using the actual weighted average interest rate on the respective debt for the period presented assuming $548 million of cash proceeds from the AS&O sale were used to first redeem all of the Companys outstanding 9.125% Senior Notes due 2023, second to repay the outstanding balance of the Companys revolving credit loans outstanding during the period presented, and third, to use the remaining net cash proceeds to prepay the Companys outstanding Term B loans.
IMPORTANT NOTE REGARDING PRO FORMA FINANCIAL STATEMENTS
These financial statements will not agree to the pro forma financial statements filed by the Company on Form 8-K on July 9, 2018, in connection with the AS&O divestiture as those statements adjust for the pro forma effects in accordance with Article 11 of Regulation S-X. These statements were prepared using the assumptions described herein under the caption Assumptions.
The following financial statements are based on information currently available and have been prepared using certain assumptions and estimates. These unaudited financial statements are intended for informational purposes only, and do not purport to represent what Integers financial position and results of operations actually would have been had the AS&O divestiture occurred on the dates indicated, or to project Integers financial position or results of operations for any future date or period.
Page 3 of 39
ASSUMPTIONS |
∎ | The following slides present results as if the Integer divestiture of the AS&O business occurred at the beginning of Fiscal Year 2017. |
∎ | Income tax provision (benefit) for adjusted amounts were computed using the applicable statutory income tax rates in effect in the respective tax jurisdications during the periods presented. These rates do not reflect our effective tax rate, which include other items and may be significantly different than the rates assumed for purposes of preparing the adjusted financial statements for a variety of factors. |
∎ | Adjusted amounts do not reflect the impact of the transition services agreement entered into with Viant to provide certain corporate services (including accounting, payroll, and information technology services) for a period of up to one year from the date of the closing to facilitate an orderly transfer of business operations. Viant will pay Integer for these services, which payments will vary in amount and length of time as specified in the transition services agreement. As there is no continuing impact on Integers results of operations from these transition services, no adjustments were made to the consolidated statements of operations set forth herein. |
Page 4 of 39
GAAP STATEMENTS OF CONTINUING OPERATIONS SUMMARY
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2017 | 2018 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||||
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Sales |
$ | 266,736 | $ | 280,916 | $ | 286,168 | $ | 302,260 | $ | 1,136,080 | $ | 292,426 | ||||||||||||||||
Cost of sales |
184,708 | 191,741 | 196,982 | 208,639 | 782,070 | 208,894 | ||||||||||||||||||||||
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Gross profit |
82,028 | 89,175 | 89,186 | 93,621 | 354,010 | 83,532 | ||||||||||||||||||||||
Operating expenses: |
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Selling, general and administrative expenses |
34,794 | 35,146 | 35,064 | 38,069 | 143,073 | 36,429 | ||||||||||||||||||||||
Research, development and engineering costs |
11,637 | 11,240 | 12,227 | 13,746 | 48,850 | 13,276 | ||||||||||||||||||||||
Other operating expenses |
11,694 | 6,727 | 6,069 | 11,948 | 36,438 | 3,784 | ||||||||||||||||||||||
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Total operating expenses |
58,125 | 53,113 | 53,360 | 63,763 | 228,361 | 53,489 | ||||||||||||||||||||||
Operating income |
23,903 | 36,062 | 35,826 | 29,858 | 125,649 | 30,043 | ||||||||||||||||||||||
Interest expense |
18,367 | 15,058 | 15,808 | 14,739 | 63,972 | 15,595 | ||||||||||||||||||||||
(Gain) loss on cost and equity investments, net |
398 | 4,427 | (1,906 | ) | (1,354 | ) | 1,565 | (4,970 | ) | |||||||||||||||||||
Other loss, net |
1,401 | 6,763 | 2,490 | 199 | 10,853 | 960 | ||||||||||||||||||||||
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Income before taxes |
3,737 | 9,814 | 19,434 | 16,274 | 49,259 | 18,458 | ||||||||||||||||||||||
Provision (benefit) for income taxes |
789 | 255 | (448 | ) | (38,424 | ) | (37,828 | ) | 5,374 | |||||||||||||||||||
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Income from continuing operations |
$ | 2,948 | $ | 9,559 | $ | 19,882 | $ | 54,698 | $ | 87,087 | $ | 13,084 | ||||||||||||||||
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Basic earnings per share |
$ | 0.10 | $ | 0.31 | $ | 0.63 | $ | 1.73 | $ | 2.77 | $ | 0.41 | ||||||||||||||||
Diluted earnings per share |
$ | 0.09 | $ | 0.30 | $ | 0.62 | $ | 1.69 | $ | 2.72 | $ | 0.40 |
Page 5 of 39
NON-GAAP STATEMENTS OF CONTINUING OPERATIONS SUMMARY
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2017 | 2018 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||||
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Sales |
$ | 265,256 | $ | 280,242 | $ | 284,564 | $ | 300,692 | $ | 1,130,754 | $ | 291,731 | ||||||||||||||||
Cost of sales |
182,648 | 190,062 | 195,042 | 206,781 | 774,533 | 207,319 | ||||||||||||||||||||||
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Gross profit |
82,608 | 90,180 | 89,522 | 93,911 | 356,221 | 84,412 | ||||||||||||||||||||||
Gross margin |
31% | 32% | 31% | 31% | 32% | 29% | ||||||||||||||||||||||
Operating expenses: |
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Selling, general and administrative |
28,205 | 27,981 | 27,107 | 30,565 | 113,858 | 29,210 | ||||||||||||||||||||||
SG&A as a % of sales |
11% | 10% | 10% | 10% | 43% | 11% | ||||||||||||||||||||||
Research, development and engineering |
11,501 | 11,104 | 12,090 | 13,610 | 48,305 | 13,237 | ||||||||||||||||||||||
RD&E as a % of sales |
4% | 4% | 4% | 5% | 18% | 5% | ||||||||||||||||||||||
Other operating expenses |
- | - | - | - | - | - | ||||||||||||||||||||||
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Total operating expenses |
39,706 | 39,085 | 39,197 | 44,175 | 162,163 | 42,447 | ||||||||||||||||||||||
Operating income |
42,902 | 51,095 | 50,325 | 49,736 | 194,058 | 41,965 | ||||||||||||||||||||||
Operating margin |
16% | 18% | 18% | 17% | 73% | 16% | ||||||||||||||||||||||
Interest expense |
16,808 | 14,123 | 15,030 | 14,487 | 60,448 | 14,538 | ||||||||||||||||||||||
Loss on cost and equity investments, net |
- | - | - | - | - | - | ||||||||||||||||||||||
Other (income) loss, net |
1,401 | 6,763 | 2,490 | 199 | 10,853 | 960 | ||||||||||||||||||||||
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Income (loss) before taxes |
24,693 | 30,209 | 32,805 | 35,050 | 122,757 | 26,467 | ||||||||||||||||||||||
Provision for income taxes |
7,333 | 6,542 | 3,385 | 6,384 | 23,644 | 6,048 | ||||||||||||||||||||||
Effective tax rate |
30% | 22% | 10% | 18% | 19% | 23% | ||||||||||||||||||||||
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Income from continuing operations |
$ | 17,360 | $ | 23,667 | $ | 29,420 | $ | 28,666 | $ | 99,113 | $ | 20,419 | ||||||||||||||||
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Diluted earnings per share |
$ | 0.55 | $ | 0.74 | $ | 0.91 | $ | 0.89 | $ | 3.09 | $ | 0.63 |
Page 6 of 39
SALES FROM CONTINUING OPERATIONS SUMMARY
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2017 | 2018 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||||
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GAAP |
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Medical |
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Cardio & Vascular |
$ | 123,484 | $ | 130,718 | $ | 137,712 | $ | 138,917 | $ | 530,831 | $ | 136,863 | ||||||||||||||||
Cardiac & Neuromodulation |
103,755 | 106,173 | 101,612 | 116,735 | 428,275 | 108,910 | ||||||||||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
28,151 | 28,282 | 31,715 | 31,858 | 120,006 | 33,941 | ||||||||||||||||||||||
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Total Medical |
255,390 | 265,173 | 271,039 | 287,510 | 1,079,112 | 279,714 | ||||||||||||||||||||||
Non-Medical |
11,346 | 15,743 | 15,129 | 14,750 | 56,968 | 12,712 | ||||||||||||||||||||||
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Total sales |
$ | 266,736 | $ | 280,916 | $ | 286,168 | $ | 302,260 | $ | 1,136,080 | $ | 292,426 | ||||||||||||||||
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NON-GAAP |
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Medical |
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Cardio & Vascular |
$ | 123,486 | $ | 130,717 | $ | 137,696 | $ | 138,905 | $ | 530,804 | $ | 136,852 | ||||||||||||||||
Cardiac & Neuromodulation |
103,753 | 106,173 | 101,612 | 116,735 | 428,273 | 108,910 | ||||||||||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
26,671 | 27,609 | 30,127 | 30,302 | 114,709 | 33,257 | ||||||||||||||||||||||
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Total Medical |
253,910 | 264,499 | 269,435 | 285,942 | 1,073,786 | 279,019 | ||||||||||||||||||||||
Non-Medical |
11,346 | 15,743 | 15,129 | 14,750 | 56,968 | 12,712 | ||||||||||||||||||||||
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Total sales |
$ | 265,256 | $ | 280,242 | $ | 284,564 | $ | 300,692 | $ | 1,130,754 | $ | 291,731 | ||||||||||||||||
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Page 7 of 39
INCOME FROM CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION SUMMARY |
2017 | 2018 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||||
Income from continuing operations (GAAP) |
$ | 2,948 | $ | 9,559 | $ | 19,882 | $ | 54,698 | $ | 87,087 | $ | 13,084 | ||||||||||||||||
Adjustments: |
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Amortization of intangibles |
7,018 | 7,084 | 7,103 | 7,117 | 28,322 | 8,397 | ||||||||||||||||||||||
Depreciation on held for sale assets |
- | - | - | - | - | - | ||||||||||||||||||||||
IP related litigation (SG&A) |
245 | 595 | 1,128 | 876 | 2,844 | 254 | ||||||||||||||||||||||
Strategic reorganization and alignment (OOE) |
- | - | - | 3,829 | 3,829 | 1,627 | ||||||||||||||||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | - | - | 369 | ||||||||||||||||||||||
Consolidation and optimization expenses (OOE) |
1,867 | 2,028 | 2,630 | 3,733 | 10,258 | 455 | ||||||||||||||||||||||
Acquisition and integration expenses (OOE) |
3,133 | 2,037 | 1,106 | 926 | 7,202 | - | ||||||||||||||||||||||
Asset dispositions, severance and other (OOE) |
2,928 | 670 | 546 | 356 | 4,500 | 470 | ||||||||||||||||||||||
(Gain) loss on cost/equity method investments |
259 | 2,877 | (1,239 | ) | (880 | ) | 1,017 | (3,926 | ) | |||||||||||||||||||
Loss on extinguishment of debt |
1,013 | 608 | 506 | 164 | 2,291 | 835 | ||||||||||||||||||||||
LSA adjustments |
(2,051 | ) | (1,791 | ) | (2,242 | ) | (2,347 | ) | (8,431 | ) | (2,240 | ) | ||||||||||||||||
Tax adjustments |
- | - | - | (39,806 | ) | (39,806 | ) | 1,094 | ||||||||||||||||||||
Adjusted income from continuing operations (Non-GAAP) |
$ | 17,360 | $ | 23,667 | $ | 29,420 | $ | 28,666 | $ | 99,113 | $ | 20,419 | ||||||||||||||||
Diluted earnings per share |
$ | 0.55 | $ | 0.74 | $ | 0.91 | $ | 0.89 | $ | 3.09 | $ | 0.63 |
Page 8 of 39
EBITDA FROM CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION SUMMARY |
2017 | 2018 | |||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA Reconciliation | Q1 | Q2 | Q3 | Q4 | FY | Q1 | ||||||||||||||||||||||
Income from continuing operations (GAAP) |
$ | 2,948 | $ | 9,559 | $ | 19,882 | $ | 54,698 | $ | 87,087 | $ | 13,084 | ||||||||||||||||
Adjustments: |
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Interest expense |
18,367 | 15,058 | 15,808 | 14,739 | 63,972 | 15,595 | ||||||||||||||||||||||
Provision (benefit) for income taxes |
789 | 255 | (448 | ) | (38,424 | ) | (37,828 | ) | 5,374 | |||||||||||||||||||
Depreciation |
9,370 | 9,358 | 9,534 | 9,815 | 38,077 | 9,963 | ||||||||||||||||||||||
Amortization |
10,083 | 10,147 | 10,145 | 10,193 | 40,568 | 10,653 | ||||||||||||||||||||||
EBITDA from continuing operations |
41,557 | 44,377 | 54,921 | 51,021 | 191,876 | 54,669 | ||||||||||||||||||||||
IP related litigation |
377 | 915 | 1,735 | 1,348 | 4,375 | 321 | ||||||||||||||||||||||
Stock-based compensation (excluding OOE) |
2,173 | 2,902 | 2,041 | 4,167 | 11,283 | 2,979 | ||||||||||||||||||||||
Strategic reorganization and alignment |
- | - | - | 5,891 | 5,891 | 2,054 | ||||||||||||||||||||||
Manufacturing alignment to support growth |
- | - | - | - | - | 513 | ||||||||||||||||||||||
Consolidation and optimization expenses |
2,347 | 2,729 | 2,979 | 4,880 | 12,803 | 575 | ||||||||||||||||||||||
Acquisition and integration expenses |
4,820 | 2,970 | 2,267 | 813 | 10,870 | - | ||||||||||||||||||||||
Asset dispositions, severance and other |
4,527 | 1,028 | 823 | 364 | 6,874 | 642 | ||||||||||||||||||||||
Non-cash (gain) loss on cost/equity method investments |
398 | 4,427 | (992 | ) | (868 | ) | 2,965 | (4,970 | ) | |||||||||||||||||||
LSA adjustments |
(3,155 | ) | (2,756 | ) | (3,450 | ) | (3,611 | ) | (12,972 | ) | (2,836 | ) | ||||||||||||||||
Adjusted EBITDA from continuing operations (Non-GAAP) |
$ | 53,044 | $ | 56,592 | $ | 60,324 | $ | 64,005 | $ | 233,965 | $ | 53,947 | ||||||||||||||||
Page 9 of 39
GAAP STATEMENTS OF OPERATIONS 2017 Q1
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(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Operations | Operations | Operations | ||||||||||
Sales |
$ | 345,413 | $ | 78,677 | $ | 266,736 | ||||||
Cost of sales |
254,187 | 69,479 | 184,708 | |||||||||
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Gross profit |
91,226 | 9,198 | 82,028 | |||||||||
Operating expenses: |
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Selling, general and administrative expenses |
39,499 | 4,705 | 34,794 | |||||||||
Research, development and engineering costs |
13,411 | 1,774 | 11,637 | |||||||||
Other operating expenses |
11,771 | 77 | 11,694 | |||||||||
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Total operating expenses |
64,681 | 6,556 | 58,125 | |||||||||
Operating income |
26,545 | 2,642 | 23,903 | |||||||||
Interest expense |
28,893 | 10,526 | 18,367 | |||||||||
Loss on cost and equity investments, net |
398 | - | 398 | |||||||||
Other loss, net |
1,449 | 48 | 1,401 | |||||||||
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Income (loss) before taxes |
(4,195 | ) | (7,932 | ) | 3,737 | |||||||
Provision (benefit) for income taxes |
144 | (645 | ) | 789 | ||||||||
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Net loss (income) |
$ | (4,339 | ) | $ | (7,287 | ) | $ | 2,948 | ||||
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Basic earnings (loss) per share |
$ | (0.14 | ) | (0.23 | ) | $ | 0.10 | |||||
Diluted earnings (loss) per share |
$ | (0.14 | ) | (0.23 | ) | $ | 0.09 | |||||
Weighted average shares outstanding - Basic |
31,016 | 31,016 | 31,016 | |||||||||
Weighted average shares outstanding - Diluted |
31,016 | 31,685 | 31,685 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 10 of 39
GAAP STATEMENTS OF OPERATIONS 2017 Q2
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(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Operations | Operations | Operations | ||||||||||
Sales |
$ | 362,719 | $ | 81,803 | $ | 280,916 | ||||||
Cost of sales |
263,447 | 71,706 | 191,741 | |||||||||
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Gross profit |
99,272 | 10,097 | 89,175 | |||||||||
Operating expenses: |
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Selling, general and administrative expenses |
39,724 | 4,578 | 35,146 | |||||||||
Research, development and engineering costs |
12,889 | 1,649 | 11,240 | |||||||||
Other operating expenses |
6,920 | 193 | 6,727 | |||||||||
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Total operating expenses |
59,533 | 6,420 | 53,113 | |||||||||
Operating income |
39,739 | 3,677 | 36,062 | |||||||||
Interest expense |
25,647 | 10,589 | 15,058 | |||||||||
Loss on cost and equity investments, net |
4,427 | - | 4,427 | |||||||||
Other (income) loss, net |
5,549 | (1,214 | ) | 6,763 | ||||||||
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Income (loss) before taxes |
4,116 | (5,698 | ) | 9,814 | ||||||||
Provision for income taxes |
1,126 | 871 | 255 | |||||||||
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Net income (loss) |
$ | 2,990 | $ | (6,569 | ) | $ | 9,559 | |||||
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Basic earnings (loss) per share |
$ | 0.10 | (0.21 | ) | $ | 0.31 | ||||||
Diluted earnings (loss) per share |
$ | 0.09 | (0.21 | ) | $ | 0.30 | ||||||
Weighted average shares outstanding - Basic |
31,302 | 31,302 | 31,302 | |||||||||
Weighted average shares outstanding - Diluted |
31,982 | 31,982 | 31,982 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 11 of 39
GAAP STATEMENTS OF OPERATIONS 2017 Q3
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(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Operations | Operations | Operations | ||||||||||
Sales |
$ | 363,308 | $ | 77,140 | $ | 286,168 | ||||||
Cost of sales |
265,073 | 68,091 | 196,982 | |||||||||
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Gross profit |
98,235 | 9,049 | 89,186 | |||||||||
Operating expenses: |
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Selling, general and administrative expenses |
39,733 | 4,669 | 35,064 | |||||||||
Research, development and engineering costs |
13,607 | 1,380 | 12,227 | |||||||||
Other operating expenses |
6,264 | 195 | 6,069 | |||||||||
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Total operating expenses |
59,604 | 6,244 | 53,360 | |||||||||
Operating income |
38,631 | 2,805 | 35,826 | |||||||||
Interest expense |
26,485 | 10,677 | 15,808 | |||||||||
Gain on cost and equity investments, net |
(1,906 | ) | - | (1,906 | ) | |||||||
Other (income) loss, net |
2,062 | (428 | ) | 2,490 | ||||||||
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| ||||
Income (loss) before taxes |
11,990 | (7,444 | ) | 19,434 | ||||||||
Benefit for income taxes |
(1,700 | ) | (1,252 | ) | (448 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
$ | 13,690 | $ | (6,192 | ) | $ | 19,882 | |||||
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share |
$ | 0.43 | (0.20 | ) | $ | 0.63 | ||||||
Diluted earnings (loss) per share |
$ | 0.43 | (0.19 | ) | $ | 0.62 | ||||||
Weighted average shares outstanding - Basic |
31,594 | 31,594 | 31,594 | |||||||||
Weighted average shares outstanding - Diluted |
32,173 | 32,173 | 32,173 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 12 of 39
GAAP STATEMENTS OF OPERATIONS 2017 Q4
|
(a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | ||||||||||
Sales |
$ | 390,481 | $ | 88,221 | $ | 302,260 | ||||||
Cost of sales |
285,663 | 77,024 | 208,639 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Gross profit |
104,818 | 11,197 | 93,621 | |||||||||
Operating expenses: |
||||||||||||
Selling, general and administrative expenses |
42,617 | 4,548 | 38,069 | |||||||||
Research, development and engineering costs |
15,340 | 1,594 | 13,746 | |||||||||
Other operating expenses |
12,337 | 389 | 11,948 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
70,294 | 6,531 | 63,763 | |||||||||
Operating income |
34,524 | 4,666 | 29,858 | |||||||||
Interest expense |
25,435 | 10,696 | 14,739 | |||||||||
Gain on cost and equity investments, net |
(1,354 | ) | - | (1,354 | ) | |||||||
Other loss, net |
527 | 328 | 199 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before taxes |
9,916 | (6,358 | ) | 16,274 | ||||||||
Benefit for income taxes |
(44,422 | ) | (5,998 | ) | (38,424 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
$ | 54,338 | $ | (360 | ) | $ | 54,698 | |||||
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share |
$ | 1.71 | (0.01 | ) | $ | 1.73 | ||||||
Diluted earnings (loss) per share |
$ | 1.68 | (0.01 | ) | $ | 1.69 | ||||||
Weighted average shares outstanding - Basic |
31,698 | 31,698 | 31,698 | |||||||||
Weighted average shares outstanding - Diluted |
32,383 | 32,383 | 32,383 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 13 of 39
GAAP STATEMENTS OF OPERATIONS 2017 FISCAL YEAR
|
(a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | ||||||||||
Sales |
$ | 1,461,921 | $ | 325,841 | $ | 1,136,080 | ||||||
Cost of sales |
1,068,370 | 286,300 | 782,070 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Gross profit |
393,551 | 39,541 | 354,010 | |||||||||
Operating expenses: |
||||||||||||
Selling, general and administrative expenses |
161,573 | 18,500 | 143,073 | |||||||||
Research, development and engineering costs |
55,247 | 6,397 | 48,850 | |||||||||
Other operating expenses |
37,292 | 854 | 36,438 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
254,112 | 25,751 | 228,361 | |||||||||
Operating income |
139,439 | 13,790 | 125,649 | |||||||||
Interest expense |
106,460 | 42,488 | 63,972 | |||||||||
Loss on cost and equity investments, net |
1,565 | - | 1,565 | |||||||||
Other (income) loss, net |
9,587 | (1,266 | ) | 10,853 | ||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before taxes |
21,827 | (27,432 | ) | 49,259 | ||||||||
Benefit for income taxes |
(44,852 | ) | (7,024 | ) | (37,828 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
$ | 66,679 | $ | (20,408 | ) | $ | 87,087 | |||||
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share |
$ | 2.12 | (0.65 | ) | $ | 2.77 | ||||||
Diluted earnings (loss) per share |
$ | 2.09 | (0.64 | ) | $ | 2.72 | ||||||
Weighted average shares outstanding - Basic |
31,402 | 31,402 | 31,402 | |||||||||
Weighted average shares outstanding - Diluted |
31,888 | 32,056 | 32,056 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 14 of 39
GAAP STATEMENTS OF OPERATIONS 2018 Q1
|
(a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | ||||||||||
Sales |
$ | 381,745 | $ | 89,319 | $ | 292,426 | ||||||
Cost of sales |
285,975 | 77,081 | 208,894 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Gross profit |
95,770 | 12,238 | 83,532 | |||||||||
Operating expenses: |
||||||||||||
Selling, general and administrative expenses |
41,238 | 4,809 | 36,429 | |||||||||
Research, development and engineering costs |
14,538 | 1,262 | 13,276 | |||||||||
Other operating expenses |
5,277 | 1,493 | 3,784 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
61,053 | 7,564 | 53,489 | |||||||||
Operating income |
34,717 | 4,674 | 30,043 | |||||||||
Interest expense |
26,445 | 10,850 | 15,595 | |||||||||
Gain on cost and equity investments, net |
(4,970 | ) | - | (4,970 | ) | |||||||
Other loss, net |
1,033 | 73 | 960 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before taxes |
12,209 | (6,249 | ) | 18,458 | ||||||||
Provision (benefit) for income taxes |
4,091 | (1,283 | ) | 5,374 | ||||||||
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
$ | 8,118 | $ | (4,966 | ) | $ | 13,084 | |||||
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share |
$ | 0.25 | (0.16 | ) | $ | 0.41 | ||||||
Diluted earnings (loss) per share |
$ | 0.25 | (0.15 | ) | $ | 0.40 | ||||||
Weighted average shares outstanding - Basic |
31,902 | 31,902 | 31,902 | |||||||||
Weighted average shares outstanding - Diluted |
32,423 | 32,423 | 32,423 |
(a) | As previously reported in SEC filings prior to July 2018. |
Page 15 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2017 Q1 |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Consolidation and optimization |
Acquisition and integration |
Asset dispositions, severance and other |
Debt / investment related charges |
Adjusted Continuing Operations | ||||||||||||||||||||||||||||||||||||||
Sales |
$ | 266,736 | $ | (1,480 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 265,256 | |||||||||||||||||||||||||||
Cost of sales |
184,708 | 1,675 | (3,735 | ) | - | - | - | - | - | 182,648 | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) |
82,028 | (3,155 | ) | 3,735 | - | - | - | - | - | 82,608 | ||||||||||||||||||||||||||||||||||||
Gross margin |
31% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 31% | |||||||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
34,794 | - | (6,212 | ) | (377 | ) | - | - | - | - | 28,205 | |||||||||||||||||||||||||||||||||||
SG&A as a % of sales |
13% | 0% | -2% | 0% | 0% | 0% | 0% | 0% | 11% | |||||||||||||||||||||||||||||||||||||
Research, development and engineering |
11,637 | - | (136 | ) | - | - | - | - | - | 11,501 | ||||||||||||||||||||||||||||||||||||
RD&E as a % of sales |
4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 4% | |||||||||||||||||||||||||||||||||||||
Other operating expenses |
11,694 | - | - | - | (2,347 | ) | (4,820 | ) | (4,527 | ) | - | - | ||||||||||||||||||||||||||||||||||
Total operating expenses |
58,125 | - | (6,348 | ) | (377 | ) | (2,347 | ) | (4,820 | ) | (4,527 | ) | - | 39,706 | ||||||||||||||||||||||||||||||||
Operating income (loss) |
23,903 | (3,155 | ) | 10,083 | 377 | 2,347 | 4,820 | 4,527 | - | 42,902 | ||||||||||||||||||||||||||||||||||||
Operating margin |
9% | -1% | 4% | 0% | 1% | 2% | 2% | 0% | 16% | |||||||||||||||||||||||||||||||||||||
Interest expense |
18,367 | - | - | - | - | - | - | (1,559 | ) | 16,808 | ||||||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
398 | - | - | - | - | - | - | (398 | ) | - | ||||||||||||||||||||||||||||||||||||
Other loss, net |
1,401 | - | - | - | - | - | - | - | 1,401 | |||||||||||||||||||||||||||||||||||||
Income (loss) before taxes |
3,737 | (3,155 | ) | 10,083 | 377 | 2,347 | 4,820 | 4,527 | 1,957 | 24,693 | ||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
789 | (1,104 | ) | 3,065 | 132 | 480 | 1,687 | 1,599 | 685 | 7,333 | ||||||||||||||||||||||||||||||||||||
Effective tax rate |
21% | 35% | 30% | 35% | 20% | 35% | 35% | 35% | 30% | |||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 2,948 | $ | (2,051 | ) | $ | 7,018 | $ | 245 | $ | 1,867 | $ | 3,133 | $ | 2,928 | $ | 1,272 | $ | 17,360 | |||||||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 0.09 | $ | (0.06 | ) | $ | 0.22 | $ | 0.01 | $ | 0.06 | $ | 0.10 | $ | 0.09 | $ | 0.04 | $ | 0.55 | |||||||||||||||||||||||||||
Weighted average shares - Diluted |
31,685 | 31,685 | 31,685 | 31,685 | 31,685 | 31,685 | 31,685 | 31,685 | 31,685 |
Page 16 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2017 Q2 |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Consolidation and optimization |
Acquisition and integration |
Asset dispositions, severance and other |
Debt / investment related charges |
Adjusted Continuing Operations |
||||||||||||||||||||||||||||||||||||
Sales |
$ | 280,916 | $ | (674 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 280,242 | |||||||||||||||||||||||||
Cost of sales |
191,741 | 2,082 | (3,761 | ) | - | - | - | - | - | 190,062 | ||||||||||||||||||||||||||||||||||
Gross profit (loss) |
89,175 | (2,756 | ) | 3,761 | - | - | - | - | - | 90,180 | ||||||||||||||||||||||||||||||||||
Gross margin |
32% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 32% | |||||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
35,146 | - | (6,250 | ) | (915 | ) | - | - | - | - | 27,981 | |||||||||||||||||||||||||||||||||
SG&A as a % of sales |
13% | 0% | -2% | 0% | 0% | 0% | 0% | 0% | 10% | |||||||||||||||||||||||||||||||||||
Research, development and engineering |
11,240 | - | (136 | ) | - | - | - | - | - | 11,104 | ||||||||||||||||||||||||||||||||||
RD&E as a % of sales |
4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 4% | |||||||||||||||||||||||||||||||||||
Other operating expenses |
6,727 | - | - | - | (2,729 | ) | (2,970 | ) | (1,028 | ) | - | - | ||||||||||||||||||||||||||||||||
Total operating expenses |
53,113 | - | (6,386 | ) | (915 | ) | (2,729 | ) | (2,970 | ) | (1,028 | ) | - | 39,085 | ||||||||||||||||||||||||||||||
Operating income (loss) |
36,062 | (2,756 | ) | 10,147 | 915 | 2,729 | 2,970 | 1,028 | - | 51,095 | ||||||||||||||||||||||||||||||||||
Operating margin |
13% | -1% | 4% | 0% | 1% | 1% | 0% | 0% | 18% | |||||||||||||||||||||||||||||||||||
Interest expense |
15,058 | - | - | - | - | - | - | (935 | ) | 14,123 | ||||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
4,427 | - | - | - | - | - | - | (4,427 | ) | - | ||||||||||||||||||||||||||||||||||
Other loss, net |
6,763 | - | - | - | - | - | - | - | 6,763 | |||||||||||||||||||||||||||||||||||
Income (loss) before taxes |
9,814 | (2,756 | ) | 10,147 | 915 | 2,729 | 2,970 | 1,028 | 5,362 | 30,209 | ||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
255 | (965 | ) | 3,063 | 320 | 701 | 933 | 358 | 1,877 | 6,542 | ||||||||||||||||||||||||||||||||||
Effective tax rate |
3% | 35% | 30% | 35% | 26% | 31% | 35% | 35% | 22% | |||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 9,559 | $ | (1,791 | ) | $ | 7,084 | $ | 595 | $ | 2,028 | $ | 2,037 | $ | 670 | $ | 3,485 | $ | 23,667 | |||||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 0.30 | $ | (0.06 | ) | $ | 0.22 | $ | 0.02 | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.11 | $ | 0.74 | |||||||||||||||||||||||||
Weighted average shares - Diluted |
31,982 | 31,982 | 31,982 | 31,982 | 31,982 | 31,982 | 31,982 | 31,982 | 31,982 |
Page 17 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2017 Q3 |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Consolidation and optimization |
Acquisition and integration |
Asset dispositions, severance and other |
Debt / investment related charges |
Adjusted Continuing Operations |
||||||||||||||||||||||||||||||||||
Sales |
$ | 286,168 | $ | (1,604 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 284,564 | |||||||||||||||||||||||
Cost of sales |
196,982 | 1,846 | (3,786 | ) | - | - | - | - | - | 195,042 | ||||||||||||||||||||||||||||||||
Gross profit (loss) |
89,186 | (3,450 | ) | 3,786 | - | - | - | - | - | 89,522 | ||||||||||||||||||||||||||||||||
Gross margin |
31% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 31% | |||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
35,064 | - | (6,222 | ) | (1,735 | ) | - | - | - | - | 27,107 | |||||||||||||||||||||||||||||||
SG&A as a % of sales |
12% | 0% | -2% | -1% | 0% | 0% | 0% | 0% | 10% | |||||||||||||||||||||||||||||||||
Research, development and engineering |
12,227 | - | (137 | ) | - | - | - | - | - | 12,090 | ||||||||||||||||||||||||||||||||
RD&E as a % of sales |
4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 4% | |||||||||||||||||||||||||||||||||
Other operating expenses |
6,069 | - | - | - | (2,979 | ) | (2,267 | ) | (823 | ) | - | - | ||||||||||||||||||||||||||||||
Total operating expenses |
53,360 | - | (6,359 | ) | (1,735 | ) | (2,979 | ) | (2,267 | ) | (823 | ) | - | 39,197 | ||||||||||||||||||||||||||||
Operating income (loss) |
35,826 | (3,450 | ) | 10,145 | 1,735 | 2,979 | 2,267 | 823 | - | 50,325 | ||||||||||||||||||||||||||||||||
Operating margin |
13% | -1% | 4% | 1% | 1% | 1% | 0% | 0% | 18% | |||||||||||||||||||||||||||||||||
Interest expense |
15,808 | - | - | - | - | - | - | (778 | ) | 15,030 | ||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
(1,906 | ) | - | - | - | - | - | - | 1,906 | - | ||||||||||||||||||||||||||||||||
Other loss, net |
2,490 | - | - | - | - | - | - | - | 2,490 | |||||||||||||||||||||||||||||||||
Income (loss) before taxes |
19,434 | (3,450 | ) | 10,145 | 1,735 | 2,979 | 2,267 | 823 | (1,128 | ) | 32,805 | |||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
(448 | ) | (1,208 | ) | 3,042 | 607 | 349 | 1,161 | 277 | (395 | ) | 3,385 | ||||||||||||||||||||||||||||||
Effective tax rate |
-2% | 35% | 30% | 35% | 12% | 51% | 34% | 35% | 10% | |||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 19,882 | $ | (2,242 | ) | $ | 7,103 | $ | 1,128 | $ | 2,630 | $ | 1,106 | $ | 546 | $ | (733 | ) | $ | 29,420 | ||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 0.62 | $ | (0.07 | ) | $ | 0.22 | $ | 0.04 | $ | 0.08 | $ | 0.03 | $ | 0.02 | $ | (0.02 | ) | $ | 0.91 | ||||||||||||||||||||||
Weighted average shares - Diluted |
32,173 | 32,173 | 32,173 | 32,173 | 32,173 | 32,173 | 32,173 | 32,173 | 32,173 |
Page 18 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2017 Q4 |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Strategic reorganization and alignment |
Consolidation and optimization |
Acquisition and integration |
Asset dispositions, severance and other |
Debt / investment related charges |
Tax Adjustment |
Adjusted Continuing Operations |
||||||||||||||||||||||||||||||||||||||
Sales |
$ | 302,260 | $ | (1,568 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 300,692 | |||||||||||||||||||||||||
Cost of sales |
208,639 | 2,043 | (3,901 | ) | - | - | - | - | - | - | - | 206,781 | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) |
93,621 | (3,611 | ) | 3,901 | - | - | - | - | - | - | - | 93,911 | ||||||||||||||||||||||||||||||||||||
Gross margin |
31% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 31% | |||||||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
38,069 | - | (6,156 | ) | (1,348 | ) | - | - | - | - | - | - | 30,565 | |||||||||||||||||||||||||||||||||||
SG&A as a % of sales |
13% | 0% | -2% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 10% | |||||||||||||||||||||||||||||||||||||
Research, development and engineering |
13,746 | - | (136 | ) | - | - | - | - | - | - | - | 13,610 | ||||||||||||||||||||||||||||||||||||
RD&E as a % of sales |
5% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5% | |||||||||||||||||||||||||||||||||||||
Other operating expenses |
11,948 | - | - | - | (5,891 | ) | (4,880 | ) | (813 | ) | (364 | ) | - | - | - | |||||||||||||||||||||||||||||||||
Total operating expenses |
63,763 | - | (6,292 | ) | (1,348 | ) | (5,891 | ) | (4,880 | ) | (813 | ) | (364 | ) | - | - | 44,175 | |||||||||||||||||||||||||||||||
Operating income (loss) |
29,858 | (3,611 | ) | 10,193 | 1,348 | 5,891 | 4,880 | 813 | 364 | - | - | 49,736 | ||||||||||||||||||||||||||||||||||||
Operating margin |
10% | -1% | 3% | 0% | 2% | 2% | 0% | 0% | 0% | 0% | 17% | |||||||||||||||||||||||||||||||||||||
Interest expense |
14,739 | - | - | - | - | - | - | - | (252 | ) | - | 14,487 | ||||||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
(1,354 | ) | - | - | - | - | - | - | - | 1,354 | - | - | ||||||||||||||||||||||||||||||||||||
Other loss, net |
199 | - | - | - | - | - | - | - | - | - | 199 | |||||||||||||||||||||||||||||||||||||
Income (loss) before taxes |
16,274 | (3,611 | ) | 10,193 | 1,348 | 5,891 | 4,880 | 813 | 364 | (1,102 | ) | - | 35,050 | |||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
(38,424 | ) | (1,264 | ) | 3,076 | 472 | 2,062 | 1,147 | (113 | ) | 8 | (386 | ) | 39,806 | 6,384 | |||||||||||||||||||||||||||||||||
Effective tax rate |
-236% | 35% | 30% | 35% | 0% | 24% | -14% | 2% | 35% | 18% | ||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 54,698 | $ | (2,347 | ) | $ | 7,117 | $ | 876 | $ | 3,829 | $ | 3,733 | $ | 926 | $ | 356 | $ | (716 | ) | $ | (39,806 | ) | $ | 28,666 | |||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 1.69 | $ | (0.07 | ) | $ | 0.22 | $ | 0.03 | $ | 0.12 | $ | 0.12 | $ | 0.03 | $ | 0.01 | $ | (0.02 | ) | $ | (1.23 | ) | $ | 0.89 | |||||||||||||||||||||||
Weighted average shares - Diluted |
32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 | 32,383 |
Page 19 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2017 FISCAL YEAR |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Strategic reorganization and alignment |
Consolidation and optimization |
Acquisition and integration |
Asset dispositions, severance and other |
Debt / investment related charges |
Tax Adjustment |
Adjusted Continuing Operations |
||||||||||||||||||||||||||||||||||||||
Sales |
$ | 1,136,080 | $ | (5,326 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,130,754 | |||||||||||||||||||||||||
Cost of sales |
782,070 | 7,646 | (15,183 | ) | - | - | - | - | - | - | - | 774,533 | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) |
354,010 | (12,972 | ) | 15,183 | - | - | - | - | - | - | - | 356,221 | ||||||||||||||||||||||||||||||||||||
Gross margin |
31% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 32% | |||||||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
143,073 | - | (24,840 | ) | (4,375 | ) | - | - | - | - | - | - | 113,858 | |||||||||||||||||||||||||||||||||||
SG&A as a % of sales |
13% | 0% | -2% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 10% | |||||||||||||||||||||||||||||||||||||
Research, development and engineering |
48,850 | - | (545 | ) | - | - | - | - | - | - | - | 48,305 | ||||||||||||||||||||||||||||||||||||
RD&E as a % of sales |
4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 4% | |||||||||||||||||||||||||||||||||||||
Other operating expenses |
36,438 | - | - | - | (5,891 | ) | (12,803 | ) | (10,870 | ) | (6,874 | ) | - | - | - | |||||||||||||||||||||||||||||||||
Total operating expenses |
228,361 | - | (25,385 | ) | (4,375 | ) | (5,891 | ) | (12,803 | ) | (10,870 | ) | (6,874 | ) | - | - | 162,163 | |||||||||||||||||||||||||||||||
Operating income (loss) |
125,649 | (12,972 | ) | 40,568 | 4,375 | 5,891 | 12,803 | 10,870 | 6,874 | - | - | 194,058 | ||||||||||||||||||||||||||||||||||||
Operating margin |
11% | -1% | 4% | 0% | 1% | 1% | 1% | 1% | 0% | 0% | 17% | |||||||||||||||||||||||||||||||||||||
Interest expense |
63,972 | - | - | - | - | - | - | - | (3,524 | ) | - | 60,448 | ||||||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
1,565 | - | - | - | - | - | - | - | (1,565 | ) | - | - | ||||||||||||||||||||||||||||||||||||
Other loss, net |
10,853 | - | - | - | - | - | - | - | - | - | 10,853 | |||||||||||||||||||||||||||||||||||||
Income (loss) before taxes |
49,259 | (12,972 | ) | 40,568 | 4,375 | 5,891 | 12,803 | 10,870 | 6,874 | 5,089 | - | 122,757 | ||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
(37,828 | ) | (4,541 | ) | 12,246 | 1,531 | 2,062 | 2,545 | 3,668 | 2,374 | 1,781 | 39,806 | 23,644 | |||||||||||||||||||||||||||||||||||
Effective tax rate |
-77% | 35% | 30% | 35% | 0% | 20% | 34% | 35% | 35% | 19% | ||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 87,087 | $ | (8,431 | ) | $ | 28,322 | $ | 2,844 | $ | 3,829 | $ | 10,258 | $ | 7,202 | $ | 4,500 | $ | 3,308 | $ | (39,806 | ) | $ | 99,113 | ||||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 2.72 | $ | (0.26 | ) | $ | 0.88 | $ | 0.09 | $ | 0.12 | $ | 0.32 | $ | 0.22 | $ | 0.14 | $ | 0.10 | $ | (1.24 | ) | $ | 3.09 | ||||||||||||||||||||||||
Weighted average shares - Diluted |
32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 | 32,056 |
Page 20 of 39
STATEMENT OF CONTINUING OPERATIONS GAAP TO NON-GAAP RECONCILIATION 2018 Q1 |
GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
LSA adjustment |
Amortization of intangibles |
IP related litigation |
Strategic reorganization and alignment |
Manufacturing |
Consolidation and optimization |
Asset dispositions, severance and other |
Debt / investment related charges |
Tax Adjustment |
Adjusted Continuing Operations |
||||||||||||||||||||||||||||||||||||||
Sales |
$ | 292,426 | $ | (695 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 291,731 | |||||||||||||||||||||||||
Cost of sales |
208,894 | 2,141 | (3,716 | ) | - | - | - | - | - | - | - | 207,319 | ||||||||||||||||||||||||||||||||||||
Gross profit (loss) |
83,532 | (2,836 | ) | 3,716 | - | - | - | - | - | - | - | 84,412 | ||||||||||||||||||||||||||||||||||||
Gross margin |
29% | -1% | 1% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 29% | |||||||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
36,429 | - | (6,898 | ) | (321 | ) | - | - | - | - | - | - | 29,210 | |||||||||||||||||||||||||||||||||||
SG&A as a % of sales |
12% | 0% | -2% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 10% | |||||||||||||||||||||||||||||||||||||
Research, development and engineering |
13,276 | - | (39 | ) | - | - | - | - | - | - | - | 13,237 | ||||||||||||||||||||||||||||||||||||
RD&E as a % of sales |
5% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5% | |||||||||||||||||||||||||||||||||||||
Other operating expenses |
3,784 | - | - | - | (2,054 | ) | (513 | ) | (575 | ) | (642 | ) | - | - | - | |||||||||||||||||||||||||||||||||
Total operating expenses |
53,489 | - | (6,937 | ) | (321 | ) | (2,054 | ) | (513 | ) | (575 | ) | (642 | ) | - | - | 42,447 | |||||||||||||||||||||||||||||||
Operating income (loss) |
30,043 | (2,836 | ) | 10,653 | 321 | 2,054 | 513 | 575 | 642 | - | - | 41,965 | ||||||||||||||||||||||||||||||||||||
Operating margin |
10% | -1% | 4% | 0% | 1% | 0% | 0% | 0% | 0% | 0% | 14% | |||||||||||||||||||||||||||||||||||||
Interest expense |
15,595 | - | - | - | - | - | - | - | (1,057 | ) | - | 14,538 | ||||||||||||||||||||||||||||||||||||
Loss (gain) on cost and equity investments, net |
(4,970 | ) | - | - | - | - | - | - | - | 4,970 | - | - | ||||||||||||||||||||||||||||||||||||
Other loss, net |
960 | - | - | - | - | - | - | - | - | - | 960 | |||||||||||||||||||||||||||||||||||||
Income (loss) before taxes |
18,458 | (2,836 | ) | 10,653 | 321 | 2,054 | 513 | 575 | 642 | (3,913 | ) | - | 26,467 | |||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes |
5,374 | (596 | ) | 2,256 | 67 | 427 | 144 | 120 | 172 | (822 | ) | (1,094 | ) | 6,048 | ||||||||||||||||||||||||||||||||||
Effective tax rate |
29% | 21% | 21% | 21% | 0% | 0% | 21% | 27% | 21% | 23% | ||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | 13,084 | $ | (2,240 | ) | $ | 8,397 | $ | 254 | $ | 1,627 | $ | 369 | $ | 455 | $ | 470 | $ | (3,091 | ) | $ | 1,094 | $ | 20,419 | ||||||||||||||||||||||||
Diluted earnings (loss) per share |
$ | 0.40 | $ | (0.07 | ) | $ | 0.26 | $ | 0.01 | $ | 0.05 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | (0.10 | ) | $ | 0.03 | $ | 0.63 | ||||||||||||||||||||||||
Weighted average shares - Diluted |
32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 | 32,423 |
Page 21 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2017 Q1 |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 125,108 | $ | 1,624 | $ | 123,484 | $ | 2 | (b) | $ | 123,486 | |||||||||
Cardiac & Neuromodulation |
103,813 | 58 | 103,755 | (2) | (b) | 103,753 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
105,146 | 76,995 | 28,151 | (1,480) | (b) | 26,671 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
334,067 | 78,677 | 255,390 | (1,480) | 253,910 | |||||||||||||||
Non-Medical |
11,346 | - | 11,346 | - | 11,346 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 345,413 | $ | 78,677 | $ | 266,736 | $ | (1,480) | $ | 265,256 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 22 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2017 Q2 |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 132,231 | $ | 1,513 | $ | 130,718 | $ | (1) | (b) | $ | 130,717 | |||||||||
Cardiac & Neuromodulation |
106,185 | 12 | 106,173 | - | (b) | 106,173 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
108,560 | 80,278 | 28,282 | (673) | (b) | 27,609 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
346,976 | 81,803 | 265,173 | (674) | 264,499 | |||||||||||||||
Non-Medical |
15,743 | - | 15,743 | - | 15,743 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 362,719 | $ | 81,803 | $ | 280,916 | $ | (674) | $ | 280,242 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 23 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2017 Q3 |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 138,982 | $ | 1,270 | $ | 137,712 | $ | (16) | (b) | $ | 137,696 | |||||||||
Cardiac & Neuromodulation |
101,616 | 4 | 101,612 | - | (b) | 101,612 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
107,581 | 75,866 | 31,715 | (1,588) | (b) | 30,127 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
348,179 | 77,140 | 271,039 | (1,604) | 269,435 | |||||||||||||||
Non-Medical |
15,129 | - | 15,129 | - | 15,129 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 363,308 | $ | 77,140 | $ | 286,168 | $ | (1,604) | $ | 284,564 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 24 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2017 Q4 |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 140,473 | $ | 1,556 | $ | 138,917 | $ | (12) | (b) | $ | 138,905 | |||||||||
Cardiac & Neuromodulation |
116,735 | - | 116,735 | - | (b) | 116,735 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
118,523 | 86,665 | 31,858 | (1,556) | (b) | 30,302 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
375,731 | 88,221 | 287,510 | (1,568) | 285,942 | |||||||||||||||
Non-Medical |
14,750 | - | 14,750 | - | 14,750 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 390,481 | $ | 88,221 | $ | 302,260 | $ | (1,568) | $ | 300,692 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 25 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2017 FISCAL YEAR |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 536,794 | $ | 5,963 | $ | 530,831 | $ | (27) | (b) | $ | 530,804 | |||||||||
Cardiac & Neuromodulation |
428,349 | 74 | 428,275 | (2) | (b) | 428,273 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
439,810 | 319,804 | 120,006 | (5,297) | (b) | 114,709 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
1,404,953 | 325,841 | 1,079,112 | (5,326) | 1,073,786 | |||||||||||||||
Non-Medical |
56,968 | - | 56,968 | - | 56,968 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 1,461,921 | $ | 325,841 | $ | 1,136,080 | $ | (5,326) | $ | 1,130,754 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 26 of 39
SALES GAAP TO NON-GAAP RECONCILIATION 2018 Q1 |
GAAP | NON-GAAP | |||||||||||||||||||
(a) | LESS: | Adjusted | ||||||||||||||||||
Total | Discontinued | Continuing | Continuing | |||||||||||||||||
Operations | Operations | Operations | Adjustments | Operations | ||||||||||||||||
Medical |
||||||||||||||||||||
Cardio & Vascular |
$ | 138,348 | $ | 1,485 | $ | 136,863 | $ | (11) | (b) | $ | 136,852 | |||||||||
Cardiac & Neuromodulation |
108,910 | - | 108,910 | - | (b) | 108,910 | ||||||||||||||
Advanced Surgical, Orthopedics & Portable Medical |
121,775 | 87,834 | 33,941 | (684) | (b) | 33,257 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Medical |
369,033 | 89,319 | 279,714 | (695) | 279,019 | |||||||||||||||
Non-Medical |
12,712 | - | 12,712 | - | 12,712 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total sales |
$ | 381,745 | $ | 89,319 | $ | 292,426 | $ | (695) | $ | 291,731 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
(b) | Net impact of LSA agreement. |
Page 27 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2017 Q1 |
(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Net Income (Loss) Reconciliation * | Operations | Operations | Operations | |||||||||
Net income (loss) (GAAP) |
$ | (4,339 | ) | $ | (7,287 | ) | $ | 2,948 | ||||
Adjustments: |
||||||||||||
Amortization of intangibles |
7,746 | 728 | 7,018 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
245 | - | 245 | |||||||||
Strategic reorganization and alignment (OOE) |
- | - | - | |||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | |||||||||
Consolidation and optimization expenses (OOE) |
1,899 | 32 | 1,867 | |||||||||
Acquisition and integration expenses (OOE) |
3,133 | - | 3,133 | |||||||||
Asset dispositions, severance and other (OOE) |
2,957 | 29 | 2,928 | |||||||||
Loss on cost/equity method investments |
259 | - | 259 | |||||||||
Loss on extinguishment of debt |
1,013 | - | 1,013 | |||||||||
LSA adjustments |
- | 2,051 | (2,051 | ) | ||||||||
Tax adjustments |
- | - | - | |||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 12,913 | $ | (4,447 | ) | $ | 17,360 | |||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 0.41 | $ | (0.14 | ) | $ | 0.55 | |||||
Weighted average shares outstanding - Diluted |
31,685 | 31,685 | 31,685 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 28 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2017 Q2 |
(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Net Income (Loss) Reconciliation * | Operations | Operations | Operations | |||||||||
Net income (loss) (GAAP) |
$ | 2,990 | $ | (6,569 | ) | $ | 9,559 | |||||
Adjustments: |
||||||||||||
Amortization of intangibles |
7,815 | 731 | 7,084 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
595 | - | 595 | |||||||||
Strategic reorganization and alignment (OOE) |
- | - | - | |||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | |||||||||
Consolidation and optimization expenses (OOE) |
2,093 | 65 | 2,028 | |||||||||
Acquisition and integration expenses (OOE) |
2,037 | - | 2,037 | |||||||||
Asset dispositions, severance and other (OOE) |
727 | 57 | 670 | |||||||||
Loss on cost/equity method investments |
2,877 | - | 2,877 | |||||||||
Loss on extinguishment of debt |
608 | - | 608 | |||||||||
LSA adjustments |
- | 1,791 | (1,791 | ) | ||||||||
Tax adjustments |
- | - | - | |||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 19,742 | $ | (3,925 | ) | $ | 23,667 | |||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 0.62 | $ | (0.12 | ) | $ | 0.74 | |||||
Weighted average shares outstanding - Diluted |
31,982 | 31,982 | 31,982 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 29 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2017 Q3 |
(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Net Income (Loss) Reconciliation * | Operations | Operations | Operations | |||||||||
Net income (loss) (GAAP) |
$ | 13,690 | $ | (6,192 | ) | $ | 19,882 | |||||
Adjustments: |
||||||||||||
Amortization of intangibles |
7,840 | 737 | 7,103 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
1,128 | - | 1,128 | |||||||||
Strategic reorganization and alignment (OOE) |
- | - | - | |||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | |||||||||
Consolidation and optimization expenses (OOE) |
2,737 | 107 | 2,630 | |||||||||
Acquisition and integration expenses (OOE) |
1,106 | - | 1,106 | |||||||||
Asset dispositions, severance and other (OOE) |
563 | 17 | 546 | |||||||||
Gain on cost/equity method investments |
(1,239 | ) | - | (1,239 | ) | |||||||
Loss on extinguishment of debt |
506 | - | 506 | |||||||||
LSA adjustments |
- | 2,242 | (2,242 | ) | ||||||||
Tax adjustments |
- | - | - | |||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 26,331 | $ | (3,089 | ) | $ | 29,420 | |||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 0.82 | $ | (0.10 | ) | $ | 0.91 | |||||
Weighted average shares outstanding - Diluted |
32,173 | 32,173 | 32,173 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 30 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2017 Q4 |
(a) | LESS: | |||||||||||
Total | Discontinued | Continuing | ||||||||||
Net Income (Loss) Reconciliation * | Operations | Operations | Operations | |||||||||
Net income (loss) (GAAP) |
$ | 54,338 | $ | (360 | ) | $ | 54,698 | |||||
Adjustments: |
||||||||||||
Amortization of intangibles |
7,854 | 737 | 7,117 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
876 | - | 876 | |||||||||
Strategic reorganization and alignment (OOE) |
3,829 | - | 3,829 | |||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | |||||||||
Consolidation and optimization expenses (OOE) |
3,886 | 153 | 3,733 | |||||||||
Acquisition and integration expenses (OOE) |
926 | - | 926 | |||||||||
Asset dispositions, severance and other (OOE) |
475 | 119 | 356 | |||||||||
Gain on cost/equity method investments |
(880 | ) | - | (880 | ) | |||||||
Loss on extinguishment of debt |
164 | - | 164 | |||||||||
LSA adjustments |
- | 2,347 | (2,347 | ) | ||||||||
Tax adjustments |
(40,281 | ) | (475 | ) | (39,806 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 31,187 | $ | 2,521 | $ | 28,666 | ||||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 0.96 | $ | 0.08 | $ | 0.89 | ||||||
Weighted average shares outstanding - Diluted |
32,383 | 32,383 | 32,383 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 31 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2017 FISCAL YEAR |
Net Income (Loss) Reconciliation * | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 66,679 | $ | (20,408 | ) | $ | 87,087 | |||||
Adjustments: |
||||||||||||
Amortization of intangibles |
31,255 | 2,933 | 28,322 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
2,844 | - | 2,844 | |||||||||
Strategic reorganization and alignment (OOE) |
3,829 | - | 3,829 | |||||||||
Manufacturing alignment to support growth (OOE) |
- | - | - | |||||||||
Consolidation and optimization expenses (OOE) |
10,615 | 357 | 10,258 | |||||||||
Acquisition and integration expenses (OOE) |
7,202 | - | 7,202 | |||||||||
Asset dispositions, severance and other (OOE) |
4,722 | 222 | 4,500 | |||||||||
Loss on cost/equity method investments |
1,017 | - | 1,017 | |||||||||
Loss on extinguishment of debt |
2,291 | - | 2,291 | |||||||||
LSA adjustments |
- | 8,431 | (8,431 | ) | ||||||||
Tax adjustments |
(40,281 | ) | (475 | ) | (39,806 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 90,173 | $ | (8,940 | ) | $ | 99,113 | |||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 2.81 | $ | (0.28 | ) | $ | 3.09 | |||||
Weighted average shares outstanding - Diluted |
32,056 | 32,056 | 32,056 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 32 of 39
NET INCOME GAAP TO NON-GAAP RECONCILIATION 2018 Q1 |
Net Income (Loss) Reconciliation * | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 8,118 | $ | (4,966 | ) | $ | 13,084 | |||||
Adjustments: |
||||||||||||
Amortization of intangibles |
9,304 | 907 | 8,397 | |||||||||
Depreciation on held for sale assets |
- | - | - | |||||||||
IP related litigation (SG&A) |
254 | - | 254 | |||||||||
Strategic reorganization and alignment (OOE) |
2,779 | 1,152 | 1,627 | |||||||||
Manufacturing alignment to support growth (OOE) |
369 | - | 369 | |||||||||
Consolidation and optimization expenses (OOE) |
473 | 18 | 455 | |||||||||
Acquisition and integration expenses (OOE) |
- | - | - | |||||||||
Asset dispositions, severance and other (OOE) |
489 | 19 | 470 | |||||||||
Gain on cost/equity method investments |
(3,926 | ) | - | (3,926 | ) | |||||||
Loss on extinguishment of debt |
835 | - | 835 | |||||||||
LSA adjustments |
- | 2,240 | (2,240 | ) | ||||||||
Tax adjustments |
1,021 | (73 | ) | 1,094 | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted net income (loss) (Non-GAAP) |
$ | 19,716 | $ | (703 | ) | $ | 20,419 | |||||
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
$ | 0.61 | $ | (0.02 | ) | $ | 0.63 | |||||
Weighted average shares outstanding - Diluted |
32,423 | 32,423 | 32,423 |
(a) | As previously reported in SEC filings prior to July 2018. |
* | Amounts shown are net of tax. |
Page 33 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2017 Q1 |
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | (4,339 | ) | $ | (7,287 | ) | $ | 2,948 | ||||
Adjustments: |
||||||||||||
Interest expense |
28,893 | 10,526 | 18,367 | |||||||||
Provision (benefit) for income taxes |
144 | (645 | ) | 789 | ||||||||
Depreciation |
13,628 | 4,258 | 9,370 | |||||||||
Amortization |
10,978 | 895 | 10,083 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
49,304 | 7,747 | 41,557 | |||||||||
IP related litigation |
377 | - | 377 | |||||||||
Stock-based compensation (excluding OOE) |
2,406 | 233 | 2,173 | |||||||||
Strategic reorganization and alignment |
- | - | - | |||||||||
Manufacturing alignment to support growth |
- | - | - | |||||||||
Consolidation and optimization expenses |
2,395 | 48 | 2,347 | |||||||||
Acquisition and integration expenses |
4,820 | - | 4,820 | |||||||||
Asset dispositions, severance and other |
4,556 | 29 | 4,527 | |||||||||
Non-cash loss on cost/equity method investments |
398 | - | 398 | |||||||||
LSA adjustments |
- | 3,155 | (3,155 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 64,256 | $ | 11,212 | $ | 53,044 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 34 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2017 Q2 |
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 2,990 | $ | (6,569 | ) | $ | 9,559 | |||||
Adjustments: |
||||||||||||
Interest expense |
25,647 | 10,589 | 15,058 | |||||||||
Provision for income taxes |
1,126 | 871 | 255 | |||||||||
Depreciation |
13,813 | 4,455 | 9,358 | |||||||||
Amortization |
11,046 | 899 | 10,147 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
54,622 | 10,245 | 44,377 | |||||||||
IP related litigation |
915 | - | 915 | |||||||||
Stock-based compensation (excluding OOE) |
3,251 | 349 | 2,902 | |||||||||
Strategic reorganization and alignment |
- | - | - | |||||||||
Manufacturing alignment to support growth |
- | - | - | |||||||||
Consolidation and optimization expenses |
2,832 | 103 | 2,729 | |||||||||
Acquisition and integration expenses |
2,970 | - | 2,970 | |||||||||
Asset dispositions, severance and other |
1,118 | 90 | 1,028 | |||||||||
Non-cash loss on cost/equity method investments |
4,427 | - | 4,427 | |||||||||
LSA adjustments |
- | 2,756 | (2,756 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 70,135 | $ | 13,543 | $ | 56,592 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 35 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2017 Q3 |
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 13,690 | $ | (6,192 | ) | $ | 19,882 | |||||
Adjustments: |
||||||||||||
Interest expense |
26,485 | 10,677 | 15,808 | |||||||||
Benefit for income taxes |
(1,700 | ) | (1,252 | ) | (448 | ) | ||||||
Depreciation |
14,068 | 4,534 | 9,534 | |||||||||
Amortization |
11,051 | 906 | 10,145 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
63,594 | 8,673 | 54,921 | |||||||||
IP related litigation |
1,735 | - | 1,735 | |||||||||
Stock-based compensation (excluding OOE) |
2,149 | 108 | 2,041 | |||||||||
Strategic reorganization and alignment |
- | - | - | |||||||||
Manufacturing alignment to support growth |
- | - | - | |||||||||
Consolidation and optimization expenses |
3,143 | 164 | 2,979 | |||||||||
Acquisition and integration expenses |
2,267 | - | 2,267 | |||||||||
Asset dispositions, severance and other |
854 | 31 | 823 | |||||||||
Non-cash gain on cost/equity method investments |
(992 | ) | - | (992 | ) | |||||||
LSA adjustments |
- | 3,450 | (3,450 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 72,750 | $ | 12,426 | $ | 60,324 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 36 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2017 Q4
|
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 54,338 | $ | (360 | ) | $ | 54,698 | |||||
Adjustments: |
||||||||||||
Interest expense |
25,435 | 10,696 | 14,739 | |||||||||
Benefit for income taxes |
(44,422 | ) | (5,998 | ) | (38,424 | ) | ||||||
Depreciation |
14,575 | 4,760 | 9,815 | |||||||||
Amortization |
11,099 | 906 | 10,193 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
61,025 | 10,004 | 51,021 | |||||||||
IP related litigation |
1,348 | - | 1,348 | |||||||||
Stock-based compensation (excluding OOE) |
4,618 | 451 | 4,167 | |||||||||
Strategic reorganization and alignment |
5,891 | - | 5,891 | |||||||||
Manufacturing alignment to support growth |
- | - | - | |||||||||
Consolidation and optimization expenses |
5,111 | 231 | 4,880 | |||||||||
Acquisition and integration expenses |
813 | - | 813 | |||||||||
Asset dispositions, severance and other |
522 | 158 | 364 | |||||||||
Non-cash gain on cost/equity method investments |
(868 | ) | - | (868 | ) | |||||||
LSA adjustments |
- | 3,611 | (3,611 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 78,460 | $ | 14,455 | $ | 64,005 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 37 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2017 FISCAL YEAR |
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 66,679 | $ | (20,408 | ) | $ | 87,087 | |||||
Adjustments: |
||||||||||||
Interest expense |
106,460 | 42,488 | 63,972 | |||||||||
Benefit for income taxes |
(44,852 | ) | (7,024 | ) | (37,828 | ) | ||||||
Depreciation |
56,084 | 18,007 | 38,077 | |||||||||
Amortization |
44,174 | 3,606 | 40,568 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
228,545 | 36,669 | 191,876 | |||||||||
IP related litigation |
4,375 | - | 4,375 | |||||||||
Stock-based compensation (excluding OOE) |
12,424 | 1,141 | 11,283 | |||||||||
Strategic reorganization and alignment |
5,891 | - | 5,891 | |||||||||
Manufacturing alignment to support growth |
- | - | - | |||||||||
Consolidation and optimization expenses |
13,349 | 546 | 12,803 | |||||||||
Acquisition and integration expenses |
10,870 | - | 10,870 | |||||||||
Asset dispositions, severance and other |
7,182 | 308 | 6,874 | |||||||||
Non-cash loss on cost/equity method investments |
2,965 | - | 2,965 | |||||||||
LSA adjustments |
- | 12,972 | (12,972 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 285,601 | $ | 51,636 | $ | 233,965 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 38 of 39
EBITDA GAAP TO NON-GAAP RECONCILIATION 2018 Q1 |
EBITDA and Adjusted EBITDA Reconciliation | (a) Total Operations |
LESS: Discontinued Operations |
Continuing Operations | |||||||||
Net income (loss) (GAAP) |
$ | 8,118 | $ | (4,966 | ) | $ | 13,084 | |||||
Adjustments: |
||||||||||||
Interest expense |
26,445 | 10,850 | 15,595 | |||||||||
Provision (benefit) for income taxes |
4,091 | (1,283 | ) | 5,374 | ||||||||
Depreciation |
14,621 | 4,658 | 9,963 | |||||||||
Amortization |
11,713 | 1,060 | 10,653 | |||||||||
|
|
|
|
|
|
|
|
| ||||
EBITDA |
64,988 | 10,319 | 54,669 | |||||||||
IP related litigation |
321 | - | 321 | |||||||||
Stock-based compensation (excluding OOE) |
3,218 | 239 | 2,979 | |||||||||
Strategic reorganization and alignment |
3,492 | 1,438 | 2,054 | |||||||||
Manufacturing alignment to support growth |
513 | - | 513 | |||||||||
Consolidation and optimization expenses |
605 | 30 | 575 | |||||||||
Acquisition and integration expenses |
- | - | - | |||||||||
Asset dispositions, severance and other |
667 | 25 | 642 | |||||||||
Non-cash gain on cost/equity method investments |
(4,970 | ) | - | (4,970 | ) | |||||||
LSA adjustments |
- | 2,836 | (2,836 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (Non-GAAP) |
$ | 68,834 | $ | 14,887 | $ | 53,947 | ||||||
|
|
|
|
|
|
|
|
|
(a) | As previously reported in SEC filings prior to July 2018. |
Page 39 of 39