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8-K - 8-K - Rockwood Holdings, Inc.a11-22311_18k.htm
EX-99.2 - EX-99.2 - Rockwood Holdings, Inc.a11-22311_1ex99d2.htm

Exhibit 99.1

 

 

NEWS RELEASE

For Immediate Distribution

 

Contact:

 

Timothy McKenna

 

 

 

 

tmckenna@rocksp.com

 

 

 

 

Phone: 609-734-6430

 

Rockwood Reports Very Strong Second Quarter Results:

·                  Net sales up 22.9%.

·                  Adjusted EBITDA from continuing operations up 43.1%.

·                  As reported EPS from continuing operations of $1.11 vs. $0.59.

·                  As adjusted EPS from continuing operations of $1.17 vs. $0.50.

 

Princeton, New Jersey; July 27, 2011 — Rockwood Holdings, Inc. (NYSE: ROC), a global producer of specialty chemicals and advanced materials, today reported earnings per share from continuing operations of $1.11 for the second quarter of 2011 as compared to $0.59 for the same period in the prior year. Rockwood’s as adjusted earnings per share increased to $1.17 in the second quarter of 2011 from $0.50 for the same period in the prior year.

 

“Our businesses performed exceptionally well in the second quarter. Strong demand for our products, combined with improvement in pricing and productivity, enabled us to achieve an all-time high Adjusted EBITDA to sales margin of 23.4 percent. Adjusted EBITDA improved by 43.1 percent versus the second quarter of last year and EPS almost doubled. Rockwood continued to benefit from the fundamental strengths of its focused portfolio of world-class businesses. It is particularly encouraging that all of our business units improved performance as compared to a year ago,” Seifi Ghasemi, Chairman and Chief Executive Officer said.

 

The highlights from continuing operations for the second quarter and six months ended June 30, 2011 are as follows:

 

·                  Net sales were $1,000.0 million for the second quarter of 2011, up 22.9% compared to $813.7 million for the same period in the prior year.  Net sales were $1,914.0 million for the six months ended June 30, 2011, up 20.2% compared to $1,592.1 million for the same period in the prior year.

 

·                  Adjusted EBITDA was $233.6 million for the second quarter of 2011, up 43.1% compared to $163.2 million for the same period in the prior year. Adjusted EBITDA was $440.2 million for the six months ended June 30, 2011, up 37.5% compared to $320.1 million for the same period in the prior year.

 

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·                  On a constant-currency basis, net sales and Adjusted EBITDA were up 12.2% and 30.0%, respectively, for the second quarter of 2011 and were up 14.7% and 30.8%, respectively, for the six months ended June 30, 2011 compared to the same period in the prior year.

 

·                  Net income attributable to Rockwood Holdings, Inc. for the second quarter of 2011 was $88.9 million, including after-tax net special charges of $4.7 million. Net income attributable to Rockwood Holdings, Inc. for the second quarter of 2010 was $45.9 million, including income of $6.9 million related to after-tax net special items.

 

Net income attributable to Rockwood Holdings, Inc. for the six months ended June 30, 2011 was $152.2 million, including after-tax net special charges of $11.6 million. Net income attributable to Rockwood Holdings, Inc. for the six months ended June 30, 2010 was $78.2 million, including income of $7.8 million related to after-tax net special items.

 

·                  Diluted earnings per share for the second quarter of 2011 were $1.11, including after-tax net special charges of $0.06. Excluding net special charges, diluted earnings per share were $1.17 in the second quarter of 2011. Diluted earnings per share for the second quarter of 2010 were $0.59, including income of $0.09 related to after-tax net special items. Excluding net special items, diluted earnings per share were $0.50 in the second quarter of 2010.

 

Diluted earnings per share for the six months ended June 30, 2011 were $1.91, including after-tax net special charges of $0.14. Excluding net special charges, diluted earnings per share were $2.05 for the six months ended June 30, 2011. Diluted earnings per share for the six months ended June 30, 2010 were $1.01, including income of $0.10 related to after-tax net special items. Excluding net special items, diluted earnings per share were $0.91 for the six months ended June 30, 2010.

 

·                  See reconciliations of net income/EPS as reported to net income/EPS as adjusted at the end of this release for details of the special charges/items discussed above.

 

Commenting on the outlook, Mr. Ghasemi said, “We continue to be optimistic about the prospects for our businesses. Demand for our products continues to be strong. We expect to maintain our high margins and improve EPS. We intend to use our strong cash flow to invest in our businesses to promote organic growth and to reduce our leverage in line with our long-term objectives.”

 

Second quarter results, as compared with the same period a year ago, are summarized below:

 

·                  Specialty Chemicals:  Net sales and Adjusted EBITDA increased 24.9% and 25.9%, respectively.

·                  In our Fine Chemicals business, higher volumes of lithium products, as well as increased selling prices, were partially offset by higher raw material costs primarily in our Metal Sulfides business.

 

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·                  In our Surface Treatment business, higher volumes in all markets, particularly in automotive and general industrial, as well as increased selling prices, were partially offset by higher raw material costs.

 

·                  Performance Additives:  Net sales and Adjusted EBITDA increased 10.9% and 24.3%, respectively.

·                  Net sales and Adjusted EBITDA were up from increased selling prices, as well as higher volumes of oilfield applications in our Clay-based Additives business.

·                  Adjusted EBITDA was negatively impacted by lower volumes in our Color Pigments and Services business and higher raw material costs.

 

·                  Titanium Dioxide Pigments:  Net sales and Adjusted EBITDA increased 34.6% and 114.5%, respectively.

·                  Net sales and Adjusted EBITDA were up primarily from higher selling prices and, to a lesser extent, a favorable product mix. Adjusted EBITDA was negatively impacted by higher production, raw material and energy costs and lower volumes.

 

·                  Advanced Ceramics:  Net sales and Adjusted EBITDA increased 19.6% and 24.6%, respectively.

·                  Net sales and Adjusted EBITDA were up from higher volumes in most product applications, including medical applications.

 

·                  Corporate and other:   Corporate costs increased in the second quarter of 2011 due to higher miscellaneous central costs.

 

Other Items:

 

·                  Interest expense, net decreased $11.6 million in the second quarter of 2011 compared to the same period in the prior year. The second quarter of 2011 included non-cash losses of $1.4 million and the second quarter of 2010 included non-cash gains of $5.6 million, representing the movement in the mark-to-market valuation of our interest rate swaps. Excluding the impact of these losses and gains, interest expense, net decreased $18.6 million primarily due to debt repayments and lower interest rates related to the refinancing of our senior secured terms loans in February 2011.

 

·                  Income taxes. The effective income tax rate for the second quarter of 2011 was 27.5% and was favorably impacted by certain domestic income that was not tax effected and a beneficial foreign earnings mix.

 

·                  Free cash flow was an inflow of $61.4 million for the second quarter of 2011 and consisted of net cash provided by operating activities of continuing operations of $117.2 million plus special items and other, net of $2.6 million, less capital expenditures, net of $58.4 million.

 

·                  Net debt, which is total debt less cash and cash equivalents, was $1,555.3 million as of June 30, 2011 compared to $1,836.9 million as of December 31, 2010. The

 

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decrease in net debt was primarily due to proceeds from the sale of our AlphaGary plastic compounding business in January 2011, partially offset by the impact of currency changes.

 

Conference Call and Webcast

 

We will host a conference call and webcast to discuss the results of operations for the second quarter ended June 30, 2011 on Wednesday, July 27th, 2011 at 11:00 am Eastern Time. The dial-in number to access the conference call in the U.S. is (800) 230-1074 and the international dial-in number is (612) 234-9959. No access code is needed for either call. A replay of the conference call will be available through August 10th, 2011 at (800) 475-6701 in the U.S., access code: 208353, and internationally at (320) 365-3844, access code: 208353.

 

A listen only, live webcast of the conference call will be available at www.rocksp.com.  Materials for the call, including a PowerPoint file detailing the results, will be available for download on this site on the morning of the call. The webcast and PowerPoint file will be archived on Rockwood’s website.

 

Non-GAAP Financial Measures

 

This press release includes “non-GAAP financial measures,” such as, a discussion of Adjusted EBITDA, free cash flow and net income/diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items. Adjusted EBITDA is not intended to be an alternative to net income attributable to Rockwood Holdings, Inc. as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. All presentations of consolidated Adjusted EBITDA are calculated using the definition set forth in the Company’s senior secured credit agreement as a basis and reflects management’s interpretations thereof.  Adjusted EBITDA, which is referred to under the senior secured credit agreement as “Consolidated EBITDA,” is defined in the senior secured credit agreement as consolidated earnings (which, as defined in the senior secured credit agreement, equals income (loss) before the deduction of income taxes of Rockwood Specialties Group, Inc. and the Restricted Subsidiaries (as such term is defined in the senior secured credit agreement), excluding extraordinary items) plus certain items including interest expense, depreciation expense, amortization expense, extraordinary losses and non-recurring charges, losses on asset sales, less certain items including extraordinary gains and non-recurring gains, non-cash gains and gains on asset sales.  We use Adjusted EBITDA on a consolidated basis to assess our operating performance, to calculate performance-based cash bonuses and determine whether certain performance-based options and restricted stock units vest (as such bonuses, options and restricted stock units are tied to Adjusted EBITDA), and as a liquidity measure. In addition, we use Adjusted EBITDA to determine compliance with our debt covenants. We also use Adjusted EBITDA on a segment basis as the primary measure used by our chief operating decision maker to evaluate the ongoing performance of our business segments and reporting units. A reconciliation of net income attributable to Rockwood Holdings, Inc. to Adjusted EBITDA is contained in this press release. We strongly urge you to review the reconciliation. In addition, we discuss sales growth in terms of nominal (actual) and net change (nominal less constant currency impacts). Free cash flow is not intended to be an alternative to cash flows from operating activities as a measure of liquidity. Our presentation of free cash flow is defined as net cash from operating activities of continuing operations plus special items and other, net less capital expenditures, net (includes proceeds on the sale of property, plant and equipment and proceeds from government

 

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grants received; excludes sales of property, plant and equipment related to sales of businesses).  Management believes that free cash flow is meaningful to investors because it provides an additional measure of liquidity.  Neither net income from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items nor diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items is intended to be an alternative for net income or diluted earnings per share. Management believes that net income and diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items is meaningful to investors because it provides a view of the Company with respect to ongoing operating results. Reconciliations of these non-GAAP financial measures are included herein. These non-GAAP measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies.

 

Rockwood Holdings, Inc. is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,700 people and annual net sales of approximately $3.2 billion. Rockwood focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets. For more information on Rockwood, please visit www.rocksp.com.

 

###

 

The information set forth in this press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries and affiliates (“Rockwood”). Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “predicts” and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. “Forward-looking statements” consist of all non-historical information, including any statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood’s forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the “Risk Factors” described in Rockwood’s 2010 Form 10-K on file with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

 

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Rockwood Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Dollars in millions, except per share amounts; shares in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Net sales

 

$

1,000.0

 

$

813.7

 

$

1,914.0

 

$

1,592.1

 

Cost of products sold

 

654.4

 

543.8

 

1,247.3

 

1,066.3

 

Gross profit

 

345.6

 

269.9

 

666.7

 

525.8

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

181.2

 

169.2

 

361.8

 

334.1

 

Restructuring and other severance costs

 

4.0

 

0.9

 

5.0

 

1.3

 

Asset write-downs and other

 

0.2

 

0.5

 

0.3

 

2.3

 

Operating income

 

160.2

 

99.3

 

299.6

 

188.1

 

 

 

 

 

 

 

 

 

 

 

Other expenses, net:

 

 

 

 

 

 

 

 

 

Interest expense, net (a)

 

(24.7

)

(36.3

)

(47.7

)

(78.1

)

Loss on early extinguishment/modification of debt

 

(0.3

)

 

(16.5

)

 

Foreign exchange gain (loss) on financing activities, net

 

2.2

 

(0.4

)

4.2

 

(0.1

)

Other, net

 

(0.1

)

 

(0.1

)

0.5

 

Other expenses, net

 

(22.9

)

(36.7

)

(60.1

)

(77.7

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

 

137.3

 

62.6

 

239.5

 

110.4

 

Income tax provision

 

37.8

 

14.3

 

66.6

 

30.0

 

Income from continuing operations

 

99.5

 

48.3

 

172.9

 

80.4

 

Income from discontinued operations, net of tax

 

0.7

 

6.5

 

0.9

 

11.1

 

Gain on sale of discontinued operations, net of tax

 

4.9

 

 

119.4

 

 

Net income

 

105.1

 

54.8

 

293.2

 

91.5

 

Net income attributable to noncontrolling interest

 

(10.6

)

(2.4

)

(20.7

)

(2.2

)

Net income attributable to Rockwood Holdings, Inc.

 

$

94.5

 

$

52.4

 

$

272.5

 

$

89.3

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to Rockwood Holdings, Inc.:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

88.9

 

$

45.9

 

$

152.2

 

$

78.2

 

Income from discontinued operations

 

5.6

 

6.5

 

120.3

 

11.1

 

Net income

 

$

94.5

 

$

52.4

 

$

272.5

 

$

89.3

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to Rockwood Holdings, Inc.:

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

1.16

 

$

0.61

 

$

1.99

 

$

1.05

 

Earnings from discontinued operations (b)

 

0.08

 

0.09

 

1.58

 

0.15

 

Basic earnings per share

 

$

1.24

 

$

0.70

 

$

3.57

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Rockwood Holdings, Inc.:

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

1.11

 

$

0.59

 

$

1.91

 

$

1.01

 

Earnings from discontinued operations (b)

 

0.07

 

0.09

 

1.51

 

0.14

 

Diluted earnings per share

 

$

1.18

 

$

0.68

 

$

3.42

 

$

1.15

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of basic shares outstanding

 

76,446

 

74,701

 

76,292

 

74,500

 

Weighted average number of diluted shares outstanding

 

79,946

 

77,583

 

79,778

 

77,359

 

 


(a) Interest expense, net includes:

 

 

 

 

 

 

 

 

 

Interest expense on debt, net

 

$

(22.1

)

$

(40.4

)

$

(50.1

)

$

(82.7

)

Mark-to-market (losses) gains on interest rate swaps

 

(1.4

)

5.6

 

4.9

 

7.7

 

Deferred financing costs

 

(1.2

)

(1.5

)

(2.5

)

(3.1

)

Total

 

$

(24.7

)

$

(36.3

)

$

(47.7

)

$

(78.1

)

 

(b) Primarily relates to the gain on sale of the AlphaGary plastic compounding business for the three and six months ended June 30, 2011.

 

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Rockwood Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in millions, except per share amounts; shares in thousands)

(Unaudited)

 

 

 

June 30,

 

December 31,

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

235.2

 

$

324.1

 

Accounts receivable, net

 

570.9

 

436.8

 

Inventories

 

610.9

 

541.8

 

Deferred income taxes

 

22.1

 

82.6

 

Prepaid expenses and other current assets

 

81.1

 

79.2

 

Assets of discontinued operations (a)

 

 

154.1

 

Total current assets

 

1,520.2

 

1,618.6

 

Property, plant and equipment, net

 

1,658.1

 

1,566.9

 

Goodwill

 

950.0

 

877.1

 

Other intangible assets, net

 

587.8

 

587.6

 

Deferred debt issuance costs, net of accumulated amortization of $17.8 and $15.7, respectively

 

17.9

 

17.2

 

Deferred income taxes

 

17.8

 

18.4

 

Other assets

 

45.7

 

38.5

 

Total assets

 

$

4,797.5

 

$

4,724.3

 

LIABILITIES

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

243.4

 

$

249.6

 

Income taxes payable

 

44.4

 

20.2

 

Accrued compensation

 

140.0

 

165.2

 

Accrued expenses and other current liabilities

 

169.5

 

164.9

 

Deferred income taxes

 

2.8

 

2.6

 

Long-term debt, current portion

 

68.6

 

465.7

 

Liabilities of discontinued operations (a)

 

 

27.6

 

Total current liabilities

 

668.7

 

1,095.8

 

Long-term debt

 

1,721.9

 

1,695.3

 

Pension and related liabilities

 

434.4

 

399.6

 

Deferred income taxes

 

108.5

 

77.9

 

Other liabilities

 

106.4

 

104.3

 

Total liabilities

 

3,039.9

 

3,372.9

 

Restricted stock units

 

10.2

 

10.1

 

EQUITY

 

 

 

 

 

Rockwood Holdings, Inc. stockholders’ equity:

 

 

 

 

 

Common stock ($0.01 par value, 400,000 shares authorized, 76,613 shares issued and 76,519 shares outstanding at June 30, 2011; 400,000 shares authorized, 75,991 shares issued and 75,897 shares outstanding at December 31, 2010)

 

0.8

 

0.8

 

Paid-in capital

 

1,218.3

 

1,202.6

 

Accumulated other comprehensive income

 

227.0

 

132.7

 

Accumulated deficit

 

(10.3

)

(282.8

)

Treasury stock, at cost

 

(1.4

)

(1.4

)

Total Rockwood Holdings, Inc. stockholders’ equity

 

1,434.4

 

1,051.9

 

Noncontrolling interest

 

313.0

 

289.4

 

Total equity

 

1,747.4

 

1,341.3

 

Total liabilities and equity

 

$

4,797.5

 

$

4,724.3

 

 


(a) The assets and liabilities of the AlphaGary plastic compounding business sold in January 2011 have been accounted for as a discontinued operation.

 

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Rockwood Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in millions)

(Unaudited)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2011

 

2010

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net income

 

$

293.2

 

$

91.5

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Income from discontinued operations, net of tax

 

(0.9

)

(11.1

)

Gain on sale of discontinued operations, net of tax

 

(119.4

)

 

Depreciation and amortization

 

133.2

 

126.6

 

Deferred financing costs amortization

 

2.5

 

3.1

 

Loss on early extinguishment/modification of debt

 

16.5

 

 

Foreign exchange (gain) loss on financing activities, net

 

(4.2

)

0.1

 

Fair value adjustment of derivatives

 

(4.9

)

(7.7

)

Bad debt provision

 

0.5

 

(0.7

)

Stock-based compensation

 

6.4

 

5.8

 

Deferred income taxes

 

14.8

 

16.8

 

Asset write-downs and other

 

0.3

 

2.3

 

Changes in assets and liabilities, net of the effect of foreign currency translation and acquisitions:

 

 

 

 

 

Accounts receivable

 

(106.1

)

(91.1

)

Inventories

 

(38.4

)

(4.6

)

Prepaid expenses and other assets

 

(0.8

)

(8.6

)

Accounts payable

 

(5.2

)

8.5

 

Income taxes payable

 

24.7

 

(7.6

)

Accrued expenses and other liabilities

 

(47.4

)

53.7

 

Net cash provided by operating activities of continuing operations

 

164.8

 

177.0

 

Net cash (used in) provided by operating activities of discontinued operations

 

(1.8

)

2.1

 

Net cash provided by operating activities

 

163.0

 

179.1

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

Capital expenditures

 

(116.9

)

(71.1

)

Government grants received

 

6.3

 

0.4

 

Acquisitions, including transaction fees and payments for prior acquisitions, net of cash acquired

 

(0.8

)

(0.9

)

Proceeds on sale of assets

 

0.3

 

1.8

 

Net cash used in investing activities of continuing operations

 

(111.1

)

(69.8

)

Net cash provided by (used in) investing activities of discontinued operations, representing net sale proceeds in 2011

 

300.8

 

(1.2

)

Net cash provided by (used in) investing activities

 

189.7

 

(71.0

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

Issuance of common stock, net of fees

 

9.2

 

10.0

 

Repayment of Titanium Dioxide Pigments revolving credit facility

 

 

(14.3

)

Prepayment of senior secured debt

 

(408.9

)

 

Repayment of senior secured debt

 

(21.4

)

(25.1

)

Payments on other long-term debt

 

(1.8

)

(2.5

)

Loan repayments to noncontrolling shareholders

 

(5.0

)

 

Deferred financing costs

 

(5.3

)

(0.3

)

Fees related to early extinguishment/modification of debt

 

(12.9

)

 

Distribution to noncontrolling shareholder

 

(0.5

)

 

Net cash used in financing activities

 

(446.6

)

(32.2

)

Effect of exchange rate changes on cash and cash equivalents

 

(11.6

)

(0.2

)

Net (decrease) increase in cash and cash equivalents

 

(105.5

)

75.7

 

Less net (decrease) increase in cash and cash equivalents from discontinued operations

 

(16.6

)

0.9

 

(Decrease) increase in cash and cash equivalents from continuing operations

 

(88.9

)

74.8

 

Cash and cash equivalents of continuing operations, beginning of period

 

324.1

 

286.2

 

Cash and cash equivalents of continuing operations, end of period

 

$

235.2

 

$

361.0

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Interest paid

 

$

62.0

 

$

82.2

 

Income taxes paid, net of refunds

 

27.1

 

20.7

 

Non-cash investing activities:

 

 

 

 

 

Acquisition of capital equipment

 

15.1

 

8.3

 

Fees related to early extinguishment of debt

 

0.5

 

 

 

8



 

Rockwood Holdings, Inc. and Subsidiaries

Net Sales and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

June 30,

 

 

 

($ in millions)

 

2011

 

2010

 

% Change

 

Specialty Chemicals

 

$

358.7

 

$

287.3

 

24.9

%

Performance Additives

 

221.2

 

199.4

 

10.9

 

Titanium Dioxide Pigments

 

256.2

 

190.3

 

34.6

 

Advanced Ceramics

 

155.0

 

129.6

 

19.6

 

Corporate and other

 

8.9

 

7.1

 

25.4

 

Total (a)

 

$

1,000.0

 

$

813.7

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

Three Months Ended

 

 

 

 

 

June 30,

 

 

 

($ in millions)

 

2011

 

2010

 

% Change

 

Specialty Chemicals

 

$

92.4

 

$

73.4

 

25.9

%

Performance Additives

 

46.0

 

37.0

 

24.3

 

Titanium Dioxide Pigments

 

63.5

 

29.6

 

114.5

 

Advanced Ceramics

 

50.6

 

40.6

 

24.6

 

Corporate and other

 

(18.9

)

(17.4

)

(8.6

)

Adjusted EBITDA from continuing operations

 

233.6

 

163.2

 

43.1

 

Discontinued operations - Plastic Compounding

 

 

9.0

 

(100.0

)

Total Adjusted EBITDA

 

$

233.6

 

$

172.2

 

35.7

%

 


(a) Excludes net sales of $60.8 million for the three months ended June 30, 2010 from the AlphaGary plastic compounding business that was sold in January 2011. The results of this business have been accounted for as a discontinued operation in the condensed consolidated financial statements for all periods presented.

 

9



 

Rockwood Holdings, Inc. and Subsidiaries

Net Sales and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

June 30,

 

 

 

($ in millions)

 

2011

 

2010

 

% Change

 

Specialty Chemicals

 

$

692.0

 

$

576.9

 

20.0

%

Performance Additives

 

414.0

 

376.6

 

9.9

 

Titanium Dioxide Pigments

 

482.8

 

371.4

 

30.0

 

Advanced Ceramics

 

309.1

 

254.3

 

21.5

 

Corporate and other

 

16.1

 

12.9

 

24.8

 

Total (a)

 

$

1,914.0

 

$

1,592.1

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

Six Months Ended

 

 

 

 

 

June 30,

 

 

 

($ in millions)

 

2011

 

2010

 

% Change

 

Specialty Chemicals

 

$

179.3

 

$

147.2

 

21.8

%

Performance Additives

 

80.9

 

66.5

 

21.7

 

Titanium Dioxide Pigments

 

118.2

 

60.3

 

96.0

 

Advanced Ceramics

 

98.9

 

77.6

 

27.4

 

Corporate and other

 

(37.1

)

(31.5

)

(17.8

)

Adjusted EBITDA from continuing operations

 

440.2

 

320.1

 

37.5

 

Discontinued operations - Plastic Compounding

 

0.2

 

17.1

 

(98.8

)

Total Adjusted EBITDA

 

$

440.4

 

$

337.2

 

30.6

%

 


(a) Excludes net sales of $3.9 million and $116.3 million for the six months ended June 30, 2011 and 2010, respectively, from the AlphaGary plastic compounding business that was sold in January 2011. The results of this business have been accounted for as a discontinued operation in the condensed consolidated financial statements for all periods presented.

 

10



 

Rockwood Holdings, Inc. and Subsidiaries

Reconciliation of Segment Net Sales and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

June 30,

 

Total

 

Total

 

($ in millions)

 

2011

 

2010

 

Change in $

 

Change in %

 

Net Sales:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

358.7

 

$

287.3

 

$

71.4

 

24.9

%

Performance Additives

 

221.2

 

199.4

 

21.8

 

10.9

 

Titanium Dioxide Pigments

 

256.2

 

190.3

 

65.9

 

34.6

 

Advanced Ceramics

 

155.0

 

129.6

 

25.4

 

19.6

 

Corporate and other

 

8.9

 

7.1

 

1.8

 

25.4

 

Total

 

$

1,000.0

 

$

813.7

 

$

186.3

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant

 

Constant Currency Basis

 

 

 

 

 

Currency

 

Net

 

Net

 

 

 

($ in millions)

 

Effect in $ (a)

 

Change in $

 

Change in %

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

29.5

 

$

41.9

 

14.6

%

 

 

Performance Additives

 

10.5

 

11.3

 

5.7

 

 

 

Titanium Dioxide Pigments

 

29.9

 

36.0

 

18.9

 

 

 

Advanced Ceramics

 

16.4

 

9.0

 

6.9

 

 

 

Corporate and other

 

1.1

 

0.7

 

9.9

 

 

 

Total

 

$

87.4

 

$

98.9

 

12.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

June 30,

 

Total

 

Total

 

($ in millions)

 

2011

 

2010

 

Change in $

 

Change in %

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

92.4

 

$

73.4

 

$

19.0

 

25.9

%

Performance Additives

 

46.0

 

37.0

 

9.0

 

24.3

 

Titanium Dioxide Pigments

 

63.5

 

29.6

 

33.9

 

114.5

 

Advanced Ceramics

 

50.6

 

40.6

 

10.0

 

24.6

 

Corporate and other

 

(18.9

)

(17.4

)

(1.5

)

(8.6

)

Adjusted EBITDA from continuing operations

 

233.6

 

163.2

 

70.4

 

43.1

 

Discontinued operations - Plastic Compounding

 

 

9.0

 

(9.0

)

(100.0

)

Total Adjusted EBITDA

 

$

233.6

 

$

172.2

 

$

61.4

 

35.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant

 

Constant Currency Basis

 

 

 

 

 

Currency

 

Net

 

Net

 

 

 

($ in millions)

 

Effect in $ (a)

 

Change in $

 

Change in %

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

6.4

 

$

12.6

 

17.2

%

 

 

Performance Additives

 

2.3

 

6.7

 

18.1

 

 

 

Titanium Dioxide Pigments

 

7.4

 

26.5

 

89.5

 

 

 

Advanced Ceramics

 

5.6

 

4.4

 

10.8

 

 

 

Corporate and other

 

(0.2

)

(1.3

)

(7.5

)

 

 

Adjusted EBITDA from continuing operations

 

21.5

 

48.9

 

30.0

 

 

 

Discontinued operations - Plastic Compounding

 

 

(9.0

)

(100.0

)

 

 

Total Adjusted EBITDA

 

$

21.5

 

$

39.9

 

23.2

%

 

 

 


(a) The constant currency effect is the translation impact calculated based on the change in the applicable rate, primarily the euro, to the U.S. dollar exchange rate for the applicable period.

 

11



 

Rockwood Holdings, Inc. and Subsidiaries

Reconciliation of Segment Net Sales and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

June 30,

 

Total

 

Total

 

($ in millions)

 

2011

 

2010

 

Change in $

 

Change in %

 

Net Sales:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

692.0

 

$

576.9

 

$

115.1

 

20.0

%

Performance Additives

 

414.0

 

376.6

 

37.4

 

9.9

 

Titanium Dioxide Pigments

 

482.8

 

371.4

 

111.4

 

30.0

 

Advanced Ceramics

 

309.1

 

254.3

 

54.8

 

21.5

 

Corporate and other

 

16.1

 

12.9

 

3.2

 

24.8

 

Total

 

$

1,914.0

 

$

1,592.1

 

$

321.9

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant

 

Constant Currency Basis

 

 

 

 

 

Currency

 

Net

 

Net

 

 

 

($ in millions)

 

Effect in $ (a)

 

Change in $

 

Change in %

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

32.2

 

$

82.9

 

14.4

%

 

 

Performance Additives

 

11.5

 

25.9

 

6.9

 

 

 

Titanium Dioxide Pigments

 

27.5

 

83.9

 

22.6

 

 

 

Advanced Ceramics

 

15.6

 

39.2

 

15.4

 

 

 

Corporate and other

 

1.0

 

2.2

 

17.1

 

 

 

Total

 

$

87.8

 

$

234.1

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

June 30,

 

Total

 

Total

 

($ in millions)

 

2011

 

2010

 

Change in $

 

Change in %

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

179.3

 

$

147.2

 

$

32.1

 

21.8

%

Performance Additives

 

80.9

 

66.5

 

14.4

 

21.7

 

Titanium Dioxide Pigments

 

118.2

 

60.3

 

57.9

 

96.0

 

Advanced Ceramics

 

98.9

 

77.6

 

21.3

 

27.4

 

Corporate and other

 

(37.1

)

(31.5

)

(5.6

)

(17.8

)

Adjusted EBITDA from continuing operations

 

440.2

 

320.1

 

120.1

 

37.5

 

Discontinued operations - Plastic Compounding

 

0.2

 

17.1

 

(16.9

)

(98.8

)

Total Adjusted EBITDA

 

$

440.4

 

$

337.2

 

$

103.2

 

30.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant

 

Constant Currency Basis

 

 

 

 

 

Currency

 

Net

 

Net

 

 

 

($ in millions)

 

Effect in $ (a)

 

Change in $

 

Change in %

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Specialty Chemicals

 

$

6.8

 

$

25.3

 

17.2

%

 

 

Performance Additives

 

2.5

 

11.9

 

17.9

 

 

 

Titanium Dioxide Pigments

 

7.0

 

50.9

 

84.4

 

 

 

Advanced Ceramics

 

5.4

 

15.9

 

20.5

 

 

 

Corporate and other

 

(0.2

)

(5.4

)

(17.1

)

 

 

Adjusted EBITDA from continuing operations

 

21.5

 

98.6

 

30.8

 

 

 

Discontinued operations - Plastic Compounding

 

 

(16.9

)

(98.8

)

 

 

Total Adjusted EBITDA

 

$

21.5

 

$

81.7

 

24.2

%

 

 

 


(a) The constant currency effect is the translation impact calculated based on the change in the applicable rate, primarily the euro, to the U.S. dollar exchange rate for the applicable period.

 

12



 

Rockwood Holdings, Inc. and Subsidiaries

Reconciliation of Income (Loss) from Continuing Operations before Taxes

to Adjusted EBITDA by Segment

 

 

 

 

 

 

 

Titanium

 

 

 

 

 

Specialty

 

Performance

 

Dioxide

 

Advanced

 

($ in millions)

 

Chemicals

 

Additives

 

Pigments

 

Ceramics

 

Three months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

61.3

 

$

28.4

 

$

40.7

 

$

31.4

 

Interest expense, net

 

8.4

 

2.2

 

4.2

 

5.4

 

Depreciation and amortization

 

19.8

 

14.5

 

18.3

 

13.7

 

Restructuring and other severance costs

 

3.2

 

0.7

 

 

0.1

 

Systems/organization establishment expenses

 

0.2

 

0.2

 

0.3

 

 

Acquisition and disposal costs

 

 

 

 

 

Loss on early extinguishment/modification of debt

 

 

 

 

 

Asset write-downs and other

 

0.1

 

 

 

0.1

 

Foreign exchange gain on financing activities, net

 

(0.9

)

 

 

(0.1

)

Other

 

0.3

 

 

 

 

Total Adjusted EBITDA

 

$

92.4

 

$

46.0

 

$

63.5

 

$

50.6

 

 

 

 

Corporate and

 

 

 

 

 

 

 

($ in millions)

 

other

 

Consolidated

 

 

 

 

 

Three months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

(24.5

)

$

137.3

 

 

 

 

 

Interest expense, net

 

4.5

 

24.7

 

 

 

 

 

Depreciation and amortization

 

1.5

 

67.8

 

 

 

 

 

Restructuring and other severance costs

 

 

4.0

 

 

 

 

 

Systems/organization establishment expenses

 

 

0.7

 

 

 

 

 

Acquisition and disposal costs

 

0.1

 

0.1

 

 

 

 

 

Loss on early extinguishment/modification of debt

 

0.3

 

0.3

 

 

 

 

 

Asset write-downs and other

 

 

0.2

 

 

 

 

 

Foreign exchange gain on financing activities, net

 

(1.2

)

(2.2

)

 

 

 

 

Other

 

0.4

 

0.7

 

 

 

 

 

Total Adjusted EBITDA

 

$

(18.9

)

$

233.6

 

 

 

 

 

 

 

 

 

 

 

 

Titanium

 

 

 

 

 

Specialty

 

Performance

 

Dioxide

 

Advanced

 

($ in millions)

 

Chemicals

 

Additives

 

Pigments

 

Ceramics

 

Three months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

38.4

 

$

14.2

 

$

10.1

 

$

20.9

 

Interest expense, net

 

14.9

 

7.6

 

3.3

 

7.2

 

Depreciation and amortization

 

17.9

 

14.2

 

16.1

 

11.9

 

Restructuring and other severance costs

 

0.5

 

0.3

 

 

0.1

 

Systems/organization establishment expenses

 

0.3

 

0.1

 

0.1

 

 

Acquisition and disposal costs

 

0.4

 

 

 

 

Asset write-downs and other

 

0.1

 

0.3

 

 

 

Foreign exchange loss (gain) on financing activities, net

 

0.9

 

 

 

0.5

 

Other

 

 

0.3

 

 

 

Adjusted EBITDA from continuing operations

 

73.4

 

37.0

 

29.6

 

40.6

 

Discontinued operations - Plastic Compounding

 

 

 

 

 

Total Adjusted EBITDA

 

$

73.4

 

$

37.0

 

$

29.6

 

$

40.6

 

 

 

 

Discontinued

 

 

 

 

 

 

 

 

 

Operations -

 

 

 

 

 

 

 

 

 

Plastic

 

Corporate and

 

 

 

 

 

($ in millions)

 

Compounding

 

other

 

Consolidated

 

 

 

Three months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

 

$

(21.0

)

$

62.6

 

 

 

Interest expense, net

 

 

3.3

 

36.3

 

 

 

Depreciation and amortization

 

 

1.3

 

61.4

 

 

 

Restructuring and other severance costs

 

 

 

0.9

 

 

 

Systems/organization establishment expenses

 

 

 

0.5

 

 

 

Acquisition and disposal costs

 

 

 

0.4

 

 

 

Asset write-downs and other

 

 

0.1

 

0.5

 

 

 

Foreign exchange loss (gain) on financing activities, net

 

 

(1.0

)

0.4

 

 

 

Other

 

 

(0.1

)

0.2

 

 

 

Adjusted EBITDA from continuing operations

 

 

(17.4

)

163.2

 

 

 

Discontinued operations - Plastic Compounding

 

9.0

 

 

9.0

 

 

 

Total Adjusted EBITDA

 

$

9.0

 

$

(17.4

)

$

172.2

 

 

 

 

13



 

Rockwood Holdings, Inc. and Subsidiaries

Reconciliation of Income (Loss) from Continuing Operations before Taxes

to Adjusted EBITDA by Segment

 

 

 

 

 

 

 

Titanium

 

 

 

 

 

Specialty

 

Performance

 

Dioxide

 

Advanced

 

($ in millions)

 

Chemicals

 

Additives

 

Pigments

 

Ceramics

 

Six months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

110.3

 

$

43.5

 

$

79.4

 

$

56.2

 

Interest expense, net

 

18.0

 

4.7

 

3.1

 

11.6

 

Depreciation and amortization

 

39.2

 

28.7

 

35.4

 

27.1

 

Restructuring and other severance costs

 

4.1

 

0.8

 

 

0.1

 

Systems/organization establishment expenses

 

0.3

 

0.4

 

0.3

 

 

Acquisition and disposal costs

 

0.1

 

 

 

 

Loss on early extinguishment/modification of debt

 

7.7

 

1.7

 

 

4.0

 

Asset write-downs and other

 

0.2

 

 

 

0.1

 

Foreign exchange (gain) loss on financing activities, net

 

(1.0

)

1.0

 

 

(0.2

)

Other

 

0.4

 

0.1

 

 

 

Adjusted EBITDA from continuing operations

 

179.3

 

80.9

 

118.2

 

98.9

 

Discontinued operations - Plastic Compounding

 

 

 

 

 

Total Adjusted EBITDA

 

$

179.3

 

$

80.9

 

$

118.2

 

$

98.9

 

 

 

 

Discontinued

 

 

 

 

 

 

 

 

 

Operations -

 

 

 

 

 

 

 

 

 

Plastic

 

Corporate and

 

 

 

 

 

($ in millions)

 

Compounding

 

other

 

Consolidated

 

 

 

Six months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

 

$

(49.9

)

$

239.5

 

 

 

Interest expense, net

 

 

10.3

 

47.7

 

 

 

Depreciation and amortization

 

 

2.8

 

133.2

 

 

 

Restructuring and other severance costs

 

 

 

5.0

 

 

 

Systems/organization establishment expenses

 

 

 

1.0

 

 

 

Acquisition and disposal costs

 

 

0.1

 

0.2

 

 

 

Loss on early extinguishment/modification of debt

 

 

3.1

 

16.5

 

 

 

Asset write-downs and other

 

 

 

0.3

 

 

 

Foreign exchange (gain) loss on financing activities, net

 

 

(4.0

)

(4.2

)

 

 

Other

 

 

0.5

 

1.0

 

 

 

Adjusted EBITDA from continuing operations

 

 

(37.1

)

440.2

 

 

 

Discontinued operations - Plastic Compounding

 

0.2

 

 

0.2

 

 

 

Total Adjusted EBITDA

 

$

0.2

 

$

(37.1

)

$

440.4

 

 

 

 

 

 

 

 

 

 

Titanium

 

 

 

 

 

Specialty

 

Performance

 

Dioxide

 

Advanced

 

($ in millions)

 

Chemicals

 

Additives

 

Pigments

 

Ceramics

 

Six months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

78.2

 

$

18.8

 

$

18.3

 

$

37.6

 

Interest expense, net

 

31.3

 

15.3

 

7.9

 

15.4

 

Depreciation and amortization

 

36.5

 

28.9

 

33.8

 

24.5

 

Restructuring and other severance costs

 

0.6

 

0.5

 

 

0.1

 

Systems/organization establishment expenses

 

0.7

 

0.3

 

0.3

 

0.1

 

Acquisition and disposal costs

 

0.5

 

 

 

 

Asset write-downs and other

 

0.1

 

2.1

 

 

 

Foreign exchange (gain) loss on financing activities, net

 

(0.1

)

0.1

 

 

(0.1

)

Other

 

(0.6

)

0.5

 

 

 

Adjusted EBITDA from continuing operations

 

147.2

 

66.5

 

60.3

 

77.6

 

Discontinued operations - Plastic Compounding

 

 

 

 

 

Total Adjusted EBITDA

 

$

147.2

 

$

66.5

 

$

60.3

 

$

77.6

 

 

 

 

Discontinued

 

 

 

 

 

 

 

 

 

Operations -

 

 

 

 

 

 

 

 

 

Plastic

 

Corporate and

 

 

 

 

 

($ in millions)

 

Compounding

 

other

 

Consolidated

 

 

 

Six months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before taxes

 

$

 

$

(42.5

)

$

110.4

 

 

 

Interest expense, net

 

 

8.2

 

78.1

 

 

 

Depreciation and amortization

 

 

2.9

 

126.6

 

 

 

Restructuring and other severance costs

 

 

0.1

 

1.3

 

 

 

Systems/organization establishment expenses

 

 

 

1.4

 

 

 

Acquisition and disposal costs

 

 

0.1

 

0.6

 

 

 

Asset write-downs and other

 

 

0.1

 

2.3

 

 

 

Foreign exchange (gain) loss on financing activities, net

 

 

0.2

 

0.1

 

 

 

Other

 

 

(0.6

)

(0.7

)

 

 

Adjusted EBITDA from continuing operations

 

 

(31.5

)

320.1

 

 

 

Discontinued operations - Plastic Compounding

 

17.1

 

 

17.1

 

 

 

Total Adjusted EBITDA

 

$

17.1

 

$

(31.5

)

$

337.2

 

 

 

 

14



 

Rockwood Holdings, Inc. and Subsidiaries

Consolidated Reconciliation of Net Income Attributable to

Rockwood Holdings, Inc. to Adjusted EBITDA

($ in millions)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Net income attributable to Rockwood Holdings, Inc.

 

$

94.5

 

$

52.4

 

$

272.5

 

$

89.3

 

Net income attributable to noncontrolling interest

 

10.6

 

2.4

 

20.7

 

2.2

 

Net income

 

105.1

 

54.8

 

293.2

 

91.5

 

Income tax provision

 

37.8

 

14.3

 

66.6

 

30.0

 

Income from discontinued operations, net of tax

 

(0.7

)

(6.5

)

(0.9

)

(11.1

)

Gain on sale of discontinued operations, net of tax

 

(4.9

)

 

(119.4

)

 

Income from continuing operations before taxes

 

137.3

 

62.6

 

239.5

 

110.4

 

Interest expense, net

 

24.7

 

36.3

 

47.7

 

78.1

 

Depreciation and amortization

 

67.8

 

61.4

 

133.2

 

126.6

 

Restructuring and other severance costs

 

4.0

 

0.9

 

5.0

 

1.3

 

Systems/organization establishment expenses

 

0.7

 

0.5

 

1.0

 

1.4

 

Acquisition and disposal costs

 

0.1

 

0.4

 

0.2

 

0.6

 

Loss on early extinguishment/modification of debt

 

0.3

 

 

16.5

 

 

Asset write-downs and other

 

0.2

 

0.5

 

0.3

 

2.3

 

Foreign exchange (gain) loss on financing activities, net

 

(2.2

)

0.4

 

(4.2

)

0.1

 

Other

 

0.7

 

0.2

 

1.0

 

(0.7

)

Adjusted EBITDA from continuing operations

 

233.6

 

163.2

 

440.2

 

320.1

 

Discontinued operations - Plastic Compounding

 

 

9.0

 

0.2

 

17.1

 

Total Adjusted EBITDA

 

$

233.6

 

$

172.2

 

$

440.4

 

$

337.2

 

 

15



 

Rockwood Holdings, Inc. and Subsidiaries

Consolidated Reconciliation of Net Income/Diluted Earnings Per Share from Continuing Operations Attributable to Rockwood Holdings, Inc.

as Reported to Net Income/Diluted Earnings Per Share from Continuing Operations Attributable to Rockwood Holdings, Inc. as Adjusted

(Dollars in millions, except per share amounts; shares in thousands)

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

June 30, 2011

 

June 30, 2010

 

 

 

Net Income from Continuing

 

Diluted EPS

 

Net Income from Continuing

 

Diluted EPS

 

 

 

Operations Attributable

 

from

 

Operations Attributable

 

from

 

 

 

to Rockwood

 

Continuing

 

to Rockwood

 

Continuing

 

 

 

Holdings, Inc.

 

Operations

 

Holdings, Inc.

 

Operations

 

As reported

 

$

88.9

 

$

1.11

 

$

45.9

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

Adjustments to expenses from continuing operations:

 

 

 

 

 

 

 

 

 

Restructuring and other severance costs

 

2.8

 

0.03

 

0.7

 

0.01

 

Mark-to-market swap loss

 

1.2

 

0.02

 

 

 

Impact of tax related items

 

0.9

 

0.01

 

 

 

Systems/organization establishment expenses

 

0.4

 

0.01

 

0.4

 

0.01

 

Loss on early extinguishment/modification of debt

 

0.2

 

 

 

 

Asset write-downs and other

 

0.2

 

 

0.5

 

0.01

 

Other

 

0.8

 

0.01

 

0.4

 

 

Subtotal

 

6.5

 

0.08

 

2.0

 

0.03

 

 

 

 

 

 

 

 

 

 

 

Adjustments to income from continuing operations:

 

 

 

 

 

 

 

 

 

Foreign exchange gain on financing activities, net

 

(1.8

)

(0.02

)

(0.6

)

(0.01

)

Mark-to-market swap gain

 

 

 

(4.5

)

(0.06

)

Impact of tax related items

 

 

 

(3.8

)

(0.05

)

Subtotal

 

(1.8

)

(0.02

)

(8.9

)

(0.12

)

 

 

 

 

 

 

 

 

 

 

Total adjustments (a)

 

4.7

 

0.06

 

(6.9

)

(0.09

)

 

 

 

 

 

 

 

 

 

 

As adjusted

 

$

93.6

 

$

1.17

 

$

39.0

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted shares outstanding

 

 

 

79,946

 

 

 

77,583

 

 


(a) The tax effects of the adjustments are benefits of $0.5 million and $4.8 million for the three months ended June 30, 2011 and 2010, respectively, based on the statutory tax rate in the various tax jurisdictions in which the adjustments occurred, adjusted for the impact of certain valuation allowances.

 

16



 

Rockwood Holdings, Inc. and Subsidiaries

Consolidated Reconciliation of Net Income/Diluted Earnings Per Share from Continuing Operations Attributable to Rockwood Holdings, Inc.

as Reported to Net Income/Diluted Earnings Per Share from Continuing Operations Attributable to Rockwood Holdings, Inc. as Adjusted

(Dollars in millions, except per share amounts; shares in thousands)

 

 

 

Six Months Ended

 

Six Months Ended

 

 

 

June 30, 2011

 

June 30, 2010

 

 

 

Net Income from Continuing

 

Diluted EPS

 

Net Income from Continuing

 

Diluted EPS

 

 

 

Operations Attributable

 

from

 

Operations Attributable

 

from

 

 

 

to Rockwood

 

Continuing

 

to Rockwood

 

Continuing

 

 

 

Holdings, Inc.

 

Operations

 

Holdings, Inc.

 

Operations

 

As reported

 

$

152.2

 

$

1.91

 

$

78.2

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

Adjustments to expenses from continuing operations:

 

 

 

 

 

 

 

 

 

Loss on early extinguishment/modification of debt

 

13.4

 

0.17

 

 

 

Restructuring and other severance costs

 

3.7

 

0.05

 

1.0

 

0.01

 

Systems/organization establishment expenses

 

0.6

 

 

1.0

 

0.01

 

Asset write-downs and other

 

0.2

 

 

1.4

 

0.02

 

Other

 

1.1

 

0.01

 

 

 

Subtotal

 

19.0

 

0.23

 

3.4

 

0.04

 

 

 

 

 

 

 

 

 

 

 

Adjustments to income from continuing operations:

 

 

 

 

 

 

 

 

 

Foreign exchange gain on financing activities, net

 

(4.2

)

(0.05

)

(1.3

)

(0.02

)

Mark-to-market swap gain

 

(3.2

)

(0.04

)

(5.7

)

(0.07

)

Impact of tax related items

 

 

 

(4.2

)

(0.05

)

Subtotal

 

(7.4

)

(0.09

)

(11.2

)

(0.14

)

 

 

 

 

 

 

 

 

 

 

Total adjustments (a)

 

11.6

 

0.14

 

(7.8

)

(0.10

)

 

 

 

 

 

 

 

 

 

 

As adjusted

 

$

163.8

 

$

2.05

 

$

70.4

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted shares outstanding

 

 

 

79,778

 

 

 

77,359

 

 


(a) The tax effects of the adjustments are benefits of $4.3 million and $5.0 million for the six months ended June 30, 2011 and 2010, respectively, based on the statutory tax rate in the various tax jurisdictions in which the adjustments occurred, adjusted for the impact of certain valuation allowances.

 

17