| Information About the Company's Segments |
The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income.
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Three Months Ended
December 31, |
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2020 |
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2019 |
| Sales: |
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| SGK Brand Solutions |
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$ |
168,140 |
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$ |
174,880 |
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| Memorialization |
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183,274 |
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154,405 |
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| Industrial Technologies |
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35,243 |
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35,659 |
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| Consolidated Sales |
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$ |
386,657 |
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$ |
364,944 |
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| Adjusted EBITDA: |
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| SGK Brand Solutions |
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$ |
21,336 |
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$ |
18,738 |
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| Memorialization |
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44,072 |
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30,093 |
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| Industrial Technologies |
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3,493 |
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4,314 |
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| Corporate and Non-Operating |
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(14,138) |
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(12,915) |
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| Total Adjusted EBITDA |
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$ |
54,763 |
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$ |
40,230 |
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Acquisition costs (1)**
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(342) |
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(1,479) |
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ERP integration costs (2)**
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(143) |
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(665) |
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Strategic initiatives and other charges: (3)**
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| Workforce reductions and related costs |
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(7,026) |
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(2,262) |
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| Other cost reduction initiatives |
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(3,681) |
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(8,458) |
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Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (4)
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(1,124) |
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— |
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Joint Venture depreciation, amortization, interest expense and other charges (5)
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— |
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(797) |
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| Stock-based compensation |
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(3,246) |
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(2,031) |
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Non-service pension and postretirement expense (6)
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(1,900) |
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(2,228) |
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Depreciation and amortization *
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(27,351) |
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(28,933) |
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| Interest expense |
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(7,728) |
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(9,240) |
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| Net (loss) income attributable to noncontrolling interests |
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(234) |
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160 |
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| Income (loss) before income taxes |
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1,988 |
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(15,703) |
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| Income tax (provision) benefit |
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(3,980) |
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5,397 |
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| Net loss |
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$ |
(1,992) |
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$ |
(10,306) |
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Note 13. Segment Information (continued)
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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) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19.
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(5) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment.
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(6) 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 $19,147 and $21,656 for the SGK Brand Solutions segment, $5,469 and $4,636 for the Memorialization segment, $1,441 and $1,442 for the Industrial Technologies segment, and $1,294 and $1,199 for Corporate and Non-Operating, for the three months ended December 31, 2020 and 2019, respectively.
** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $7,355 and $3,446 for the SGK Brand Solutions segment, $1,130 and $328 for the Memorialization segment, and $2,707 and $9,090 for Corporate and Non-Operating, for the three months ended December 31, 2020 and 2019, respectively.
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