Information About the Company's Segments |
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Three Months Ended March 31, |
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Six Months Ended March 31, |
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2019 |
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2018 |
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2019 |
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2018 |
Sales: |
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SGK Brand Solutions |
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$ |
190,651 |
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$ |
207,052 |
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$ |
375,951 |
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$ |
398,818 |
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Memorialization |
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162,176 |
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168,689 |
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316,062 |
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313,578 |
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Industrial Technologies |
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38,573 |
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38,320 |
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73,564 |
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71,119 |
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Consolidated Sales |
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$ |
391,400 |
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$ |
414,061 |
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$ |
765,577 |
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$ |
783,515 |
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Adjusted EBITDA: |
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SGK Brand Solutions |
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$ |
29,370 |
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$ |
35,099 |
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$ |
56,721 |
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$ |
65,951 |
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Memorialization |
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34,965 |
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39,478 |
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65,286 |
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67,921 |
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Industrial Technologies |
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4,792 |
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4,881 |
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8,387 |
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8,568 |
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Corporate and Non-Operating |
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(12,939 |
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(17,003 |
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(27,725 |
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(33,489 |
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Total Adjusted EBITDA |
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$ |
56,188 |
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$ |
62,455 |
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$ |
102,669 |
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$ |
108,951 |
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Acquisition costs (1)**
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(3,374 |
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(3,859 |
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(5,406 |
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(5,790 |
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ERP integration costs (2)**
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(1,805 |
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(3,541 |
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(3,982 |
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(5,568 |
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Strategic initiatives and other charges (3)**
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(2,112 |
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(1,568 |
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(2,112 |
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(2,215 |
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Loss on divestiture (4)
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— |
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— |
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(4,465 |
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— |
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Stock-based compensation |
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(1,366 |
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(2,658 |
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(5,013 |
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(8,132 |
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Non-service pension and postretirement expense (5)
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(970 |
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(1,425 |
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(1,901 |
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(2,850 |
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Depreciation and amortization *
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(21,050 |
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(19,748 |
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(40,276 |
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(36,986 |
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Interest expense |
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(10,259 |
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(9,262 |
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(20,560 |
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(17,063 |
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Net loss attributable to noncontrolling interests |
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(223 |
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(110 |
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(336 |
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(132 |
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Income before income taxes |
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15,029 |
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20,284 |
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18,618 |
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30,215 |
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Income tax (provision) benefit |
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165 |
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(2,212 |
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(440 |
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23,015 |
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Net income |
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$ |
15,194 |
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$ |
18,072 |
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$ |
18,178 |
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$ |
53,230 |
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(1) Includes certain non-recurring costs associated with recent acquisition activities.
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(2) Represents costs associated with global ERP system integration efforts.
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(3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels.
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(4) Represents a loss on the sale of a controlling interest in a Memorialization business.
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(5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets and amortization of actuarial gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
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* Depreciation and amortization was $13,165 and $11,827 for the SGK Brand Solutions segment, $5,039 and $5,172 for the Memorialization segment, $1,559 and $1,476 for the Industrial Technologies segment, and $1,287 and $1,273 for Corporate and Non-Operating, for the three months ended March 31, 2019 and 2018, respectively. Depreciation and amortization was $24,607 and $22,832 for the SGK Brand Solutions segment, $10,058 and $9,314 for the Memorialization segment, $3,085 and $2,602 for the Industrial Technologies segment, and $2,526 and $2,238 for Corporate and Non-Operating, for the six months ended March 31, 2019 and 2018, respectively.
** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $2,808 and $1,535 for the SGK Brand Solutions segment and $4,483 and $6,294 for Corporate and Non-Operating, for the three months ended March 31, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $642 for the Memorialization segment and $497 for the Industrial Technologies segment for the three months ended March 31, 2018. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,409 and $3,185 for the SGK Brand Solutions segment and $8,091 and $8,871 for Corporate and Non-Operating, for the six months ended March 31, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $930 for the Memorialization segment and $587 for the Industrial Technologies segment for the six months ended March 31, 2018.
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