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8-K - FORM 8-K - BLOUNT INTERNATIONAL INCd311120d8k.htm

Exhibit 99.1

 

  

Blount International, Inc.

4909 SE International Way (97222 4679)

PO Box 22127

Portland, OR 97269 2127 USA

(503) 653-8881

FAX: (503) 653-4555

 

LOGO

 

   LOGO
   Contact:   

David Dugan

Director, Corporate

Communications and

Investor Relations

503-653-4692

   Release:    Immediately

Blount Announces 2011 Fourth Quarter and Full Year Results, Provides Outlook for 2012

 

   

Full year sales increased 36% to $832 million

 

   

Full year operating income increased 14% to $98 million

 

   

Fourth quarter 2011 sales increased 38% from the prior year, 4% when excluding sales associated with acquired businesses

 

   

Fourth quarter 2011 operating income and operating margin consistent with fourth quarter 2010 results, excluding the impact of businesses acquired in 2011

PORTLAND, OR, March 6, 2012: Blount International, Inc. [NYSE: BLT] (“Blount” or the “Company”) today announced results for the fourth quarter and full year ended December 31, 2011. Blount also provided an outlook for 2012.

Results for the Quarter and Full Year Ended December 31, 2011

Sales in the fourth quarter were $236.5 million, a 38% increase from the fourth quarter of 2010 and a 4% increase when excluding the impact of acquired businesses. Operating income for the fourth quarter of 2011 was $21.4 million compared to $21.5 million in the prior year. The year-over-year impact of acquired businesses increased sales by $59.0 million and decreased operating income by $0.4 million in the fourth quarter of 2011. Fourth quarter 2011 operating income includes non-cash charges of $6.7 million related to accounting for acquisitions. Fourth quarter income from continuing operations was $9.5 million ($0.19 per diluted share) compared to $12.4 million ($0.25 per diluted share) in the fourth quarter of 2010. Both non-cash purchase accounting charges and a higher income tax rate contributed significantly to the lower income from continuing operations. The year-over-year increase in non-cash purchase accounting charges in the fourth quarter of 2011 reduced income from continuing operations by $3.4 million, or $0.07 per diluted share.

Full year 2011 sales were $831.6 million, a 36% increase from 2010. Full year 2011 sales rose 14% when excluding sales generated from acquired businesses. Operating income for 2011 was $98.0 million compared to $85.6 million in 2010, and income from continuing operations was $49.7 million ($1.01 per diluted share) compared to $41.4 million ($0.85 per diluted share) in 2010. The year-over-year increase in non-cash purchase accounting charges in 2011 reduced income from continuing operations by $8.5 million, or $0.17 per diluted share.

“The past year was extremely productive, including the acquisitions of KOX, PBL, and Woods/TISCO; the refinancing of our lending facility, which lowered our borrowing costs and provided us low cost acquisition

 

- 1 -


financing; the introduction of an OREGON® branded log splitter and OREGON® PowerNowTM cordless chain saw; the ground breaking for the expansion of our saw chain and guide bar manufacturing facility in China, which will allow us to meet future customer demand; and the opening of our new Kansas City distribution center,” commented Josh Collins, Blount’s Chairman and Chief Executive Officer. “Our fourth quarter 2011 results reflect increased spending and investment in connection with executing our strategic programs as well as some slowing in sales growth compared to rates we saw earlier in the year. We expect a busy 2012 as we work to integrate the recently acquired businesses and increase capacity.”

Segment Results

As a result of the acquisitions we made in 2011, we now operate in two business segments – the Forestry, Lawn, and Garden (“FLAG”) segment and the Farm, Ranch, and Agriculture (“FRAG”) segment. Beginning with the fourth quarter of 2011, the Company is reporting separate results for the FLAG and FRAG segments. Blount’s Concrete Cutting and Finishing (“CCF”) business is included in “Corporate and Other.” All financial information for our business segments is presented on a comparable basis.

Forestry, Lawn, and Garden

The FLAG segment reported fourth quarter and full year 2011 sales of $165.6 and $659.8 million, respectively. Fourth quarter 2011 sales increased 14% from the fourth quarter of 2010; 4% when excluding acquired businesses. For comparability, all sales statistics are quoted excluding the impact of acquired businesses for the period during which Blount did not own the acquired business. Fourth quarter 2011 sales were strongest in the South Asia and South American markets, growing a combined 10% compared to the fourth quarter of 2010, followed by the U.S. which grew 6% in the fourth quarter of 2011. Europe and Russia combined for an 8% sales decline as market conditions softened with sovereign debt concerns and economic conditions in that region. The change in segment sales for the comparable fourth quarter periods is illustrated below, with sales from businesses acquired within the past year of $14.0 million presented entirely as acquired volume increase.

Change in FLAG Segment Sales from Fourth Quarter 2010

(U.S. dollars in millions; amounts may not sum due to rounding)

 

     Sales      Growth  

Fourth Quarter 2010

   $ 145.4      

Increase / (Decrease)

     

Foreign Exchange

     0.5         0.3
  

 

 

    

 

 

 
     145.9         0.3

Unit Volume

     0.9         0.6

Selling Price / Mix

     4.8         3.3
  

 

 

    

 

 

 
     151.6         4.2

Acquired Volume (1)

     14.0         9.6
  

 

 

    

 

 

 

Fourth Quarter 2011

   $ 165.6         13.9
  

 

 

    

 

 

 

 

(1) Represents all fourth quarter 2011 sales from KOX and the FLAG portion of PBL

Segment backlog was $182.4 million at December 31, 2011 compared to $126.0 million at December 31, 2010. Backlog at December 31, 2011 includes $9.7 million related to businesses acquired in 2011.

Segment contribution to operating income and Earnings Before Interest, Taxes, Depreciation, Amortization and certain charges (“Adjusted EBITDA”) was $26.3 million and $33.3 million, respectively, for the fourth quarter of 2011. Segment contribution to operating income and Adjusted EBITDA increased by 0.4% and 5.3%, respectively, for the fourth quarter of 2011 versus 2010. Increased selling prices had the largest impact on segment operating income. A reconciliation of the fourth quarter 2011 contribution to operating income compared to the fourth quarter of 2010 is presented below.

 

- 2 -


Change in FLAG Segment Contribution to Operating Income and Adjusted EBITDA

(U.S. dollars in millions; amounts may not sum due to rounding)

 

     Contribution
to
Operating
Income
    Percent
of
Segment
Sales
    Depreciation,
Amortization
and
Other
     Adjusted
EBITDA
 

Fourth Quarter 2010

   $ 26.2        18.0   $ 5.4       $ 31.6   
      

 

 

    

 

 

 

Increase / (Decrease)

         

Steel

     (2.7       

Foreign Exchange

     1.1          
  

 

 

        
     24.7        16.9     

Unit Volume

     0.3          

Selling Price / Mix

     4.8          

Costs / Mix

     (2.6       
  

 

 

        
     27.1        17.8     

Acquired businesses excluding acquisition accounting

     0.2          

Acquisition accounting

     (1.0       
  

 

 

        

Fourth Quarter 2011

   $ 26.3        15.9   $ 7.0       $ 33.3   
  

 

 

     

 

 

    

 

 

 

The impact of steel costs reduced segment contribution to operating income, partially offset by favorable changes in currency exchange rates, which combined for a reduction to segment contribution margin by approximately 110 basis points. The positive impact of currency on the segment’s cost structure was related to the relatively weaker Brazilian currency as well as more favorable currency exchange rates underlying material purchases on a year-over-year basis. Increased unit volume and segment average selling prices improved segment contribution to operating income, but were partially offset by increased costs/mix spending, combining for an increase in segment contribution margin of 90 basis points. The increase in segment cost/mix spending was driven by higher advertising expense in support of the recently introduced OREGON® PowerNowTM cordless chain saw. Compensation and relocation costs also increased in connection with positioning personnel in the supply chain and marketing areas to execute the Company’s strategic programs.

Farm, Ranch, and Agriculture

The FRAG segment reported fourth quarter and full year 2011 sales of $65.8 and $147.5 million, respectively. Fourth quarter 2011 sales increased $45.3 million from the fourth quarter of 2010, driven nearly entirely by sales generated by acquired businesses. Excluding the impact of acquired businesses, sales increased just over 1%. The change in segment sales for the comparable fourth quarter periods is illustrated below, with sales from business acquired within the past year of $45.1 million presented entirely as acquired volume increase.

Change in FRAG Segment Sales from Fourth Quarter 2010

(U.S. dollars in millions; amounts may not sum due to rounding)

 

     Sales     Growth  

Fourth Quarter 2010

   $ 20.4     

Increase / (Decrease)

    

Unit Volume

     (0.6     (3.1 )% 

Selling Price / Mix

     0.9        4.2
  

 

 

   

 

 

 
     20.7        1.1

Acquired Volume (1)

     45.1        221.0
  

 

 

   

 

 

 

Fourth Quarter 2011

   $ 65.8        222.0
  

 

 

   

 

 

 

 

(1) Represents all fourth quarter 2011 sales from Woods and from the FRAG portion of PBL

 

- 3 -


Segment backlog was $28.3 million at December 31, 2011 compared to $6.7 million at December 31, 2010. December 31, 2011 backlog includes $21.5 million related to businesses acquired in 2011.

Segment contribution to operating income and Adjusted EBITDA was a net expense of $0.6 million and earnings of $6.3 million, respectively, for the fourth quarter of 2011. Acquired businesses had a significant impact on segment contribution to operating income. A reconciliation of the fourth quarter 2011 contribution to operating income compared to the fourth quarter of 2010 is presented below.

Change in FRAG Segment Contribution to Operating Income and Adjusted EBITDA

(U.S. dollars in millions; amounts may not sum due to rounding)

 

     Contribution
to
Operating
Income
    Percent
of
Segment
Sales
    Depreciation,
Amortization
and
Other
     Adjusted
EBITDA
 

Fourth Quarter 2010

   $ 0.7        3.4   $ 2.0       $ 2.7   
      

 

 

    

 

 

 

Increase / (Decrease)

         

Unit Volume

     (0.2       

Selling Price / Mix

     0.9          

Costs / Mix

     (2.7       
  

 

 

        
     (1.3     (6.3 )%      

Acquired businesses excluding acquisition accounting

     4.4          

Acquisition accounting

     (3.7       
  

 

 

        

Fourth Quarter 2011

   $ (0.6     (1.0 )%    $ 6.9       $ 6.3   
  

 

 

     

 

 

    

 

 

 

The unfavorable cost/mix impact on segment contribution to operating income was driven primarily by approximately $2.0 million of costs associated with consolidating the SpeeCo assembly and distribution center from Golden, Colorado, into our Kansas City, Missouri facility and supplier driven warranty expenses. Those costs include overlapping personnel expense, operating and logistics costs, and severance expense associated with closing the Golden, Colorado operation and product rework and refund expense associated with the warranty issues. The consolidation is expected to be completed by the end of the second quarter of 2012 and provide approximately $1.0 million of cost savings on an annual basis by the end of 2012.

Corporate and Other

Corporate and other generated net expense of $4.3 million in the fourth quarter of 2011, down from $5.4 million in the fourth quarter of 2010. Lower spending on strategic programs, primarily business acquisition expenses, drove the improvement.

Income from Continuing Operations

Fourth quarter 2011 income from continuing operations declined primarily due to the impact of non-cash purchase accounting charges and a larger income tax expense in the fourth quarter of 2011 compared to the fourth quarter of 2010. A reduction in net interest expense partially offset the impacts of purchase accounting and income taxes. Net interest expense was $4.5 million in the fourth quarter of 2011 versus $5.0 million in the fourth quarter of 2010. The impact of lower interest rates in 2011 more than offset the higher average borrowing levels driven by acquisitions in 2011. The change in continuing operations for the fourth quarter of 2011 compared to the fourth quarter of 2010 is illustrated in the table below.

 

- 4 -


Change in Income from Continuing Operations

(U.S. dollars in millions, except per share data; amounts may not sum due to rounding)

 

      Pre-tax
Income
    Income
Tax
Effect
    Income
from
Continuing
Operations
    Diluted
Earnings
per
Share
 

Fourth Quarter 2010 Results

   $ 16.4      $ 4.0      $ 12.4      $ 0.25   

Change due to:

        

Increased operating income excluding acquisition accounting

     4.4        1.1        3.3        0.07   

Acquisition accounting impact

     (4.5     (1.1     (3.4     (0.07

Decreased net interest expense

     0.5        0.1        0.4        0.01   

Change in other expense

     (0.2     0.0        (0.1     (0.00

Change in income tax rate

     n/a        3.0        (3.0     (0.06
  

 

 

   

 

 

   

 

 

   

 

 

 

Fourth Quarter 2011 Results

   $ 16.5      $ 7.0      $ 9.5      $ 0.19   
  

 

 

   

 

 

   

 

 

   

 

 

 

The Company recorded tax expense of $7.0 million in the fourth quarter of 2011 versus $4.0 million in the fourth quarter of 2010. The fourth quarter 2011 effective tax rate was adversely impacted by certain book expense items that are not deductible for income tax purposes.

Cash Flow and Debt

As of December 31, 2011, the Company had net debt of $468.2 million, a decrease of $2.2 million from September 30, 2011. The decrease in net debt in the fourth quarter of 2011 resulted primarily from the generation of $16.7 million of cash from operations, offset by net capital expenditures of $15.2 million. Net capital expenditures were $9.3 million larger in the fourth quarter of 2011 than the fourth quarter of 2010 as the Company executed on its planned investment in China manufacturing capacity and incurred capital spending at acquired businesses. The Company generated $1.5 million in free cash flow in the fourth quarter of 2011. The Company defines free cash flow as cash flows from operating activities less net capital spending. The ratio of net debt to pro forma last-twelve-months (“LTM”) Adjusted EBITDA was 2.8x as of December 31, 2011, which is consistent with September 30, 2011 and an increase from 2.1x of net leverage at the end of December 2010. The increase in leverage from the end of 2010 is the result of acquisitions made in 2011, offset by free cash flow generation in 2011.

2012 Financial Outlook

The Company’s fiscal year 2012 outlook is for sales to range between $1,020 million and $1,060 million, and operating income to range between $120 million and $133 million. Our expectation for 2012 sales levels assumes growth in FLAG sales of 4% to 7% and growth in FRAG sales of 8% to 11%, both compared to 2011 pro forma full-year levels and including sales price increases of between 1% and 3%. The expectation for 2012 assumes that unfavorable foreign currency exchange rates will reduce operating income on a year-over-year basis by between $1.0 million and $2.0 million and rising steel prices will further reduce year-over-year operating income between $2.0 million and $3.0 million. The outlook for 2012 operating income also includes estimated non-cash charges as a result of acquisition accounting of approximately $17 million. Free cash flow for 2012 is expected to range between $50 million and $60 million, after approximately $45 million to $50 million of capital expenditures. Net interest expense is expected to be approximately $17 million in 2012, and the effective income tax rate for continuing operations is expected to be between 34% and 37% in 2012.

 

- 5 -


A comparison of key operating indicators for 2011 actual results, 2011 pro forma results, and the 2012 outlook mid-point, is provided in the table below:

 

(U.S. dollars in millions)    2011
Actual
     2011
Pro Forma
     2012
Outlook
Mid-Point
 

Sales

   $ 831.6       $ 975.5       $ 1,040.0   

Operating Income

     98.0         110.0         128.0   

Adjusted EBITDA

     146.9         168.7         180.0   

Free Cash Flow

     38.3         47.9         55.0   

Net Capital Expenditures

     39.4         41.6         48.0   

Net Debt at Period End

     468.2         468.2         413.0   

Net Debt/Adjusted EBITDA

     3.2x         2.8x         2.3x   

Adjusted EBITDA and Free Cash Flow are non-GAAP measures and are reconciled to Operating Income and Cash Flow from Operations in the attached financial data table.

###

Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for consumers and professionals operating primarily in two market segments: Forestry, Lawn, and Garden (“FLAG”); and Farm, Ranch, and Agriculture (“FRAG”). Blount also sells products in the construction markets and is the market leader in manufacturing saw chain and guide bars for chainsaws. Blount has a global manufacturing and distribution footprint and sells its products in more than 115 countries around the world. Blount markets its products primarily under the OREGON®, OREGON® PowerNowTM, Carlton®, Woods®, TISCO, SpeeCo®, and ICS® brands. For more information about Blount, please visit our website at http://www.blount.com.

“Forward looking statements” in this release, including without limitation Blount’s “outlook,” “expectations,” “beliefs,” “plans,” “indications,” “estimates,” “anticipations,” “guidance” and their variants, as defined by the Private Securities Litigation Reform Act of 1995, are based upon available information and upon assumptions that Blount believes are reasonable; however, these forward looking statements involve certain risks and should not be considered indicative of actual results that Blount may achieve in the future. In particular, among other things, guidance given in this release is expressly based upon certain assumptions concerning market conditions, foreign currency exchange rates, and raw material costs, especially with respect to the price of steel, the presumed relationship between backlog and future sales trends and certain income tax matters, as well as being subject to the uncertainty of the current global economic situation. To the extent that these assumptions are not realized going forward, or other unforeseen factors arise, actual results for the periods subsequent to the date of this announcement may differ materially.

 

- 6 -


Blount International, Inc. Financial Data (Unaudited)

 

Condensed Consolidated Statements of Income

(In thousands, except per share data)

   Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
   2010     2011     2010     2011  

Sales

   $ 170,982      $ 236,515      $ 611,480      $ 831,630   

Cost of sales

     117,555        170,502        407,454        575,821   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     53,427        66,013        204,026        255,809   

Selling, general, and administrative expenses

     31,911        44,653        118,471        157,856   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     21,516        21,360        85,555        97,953   

Interest expense, net of interest income

     (4,953     (4,479     (25,517     (18,550

Other income (expense), net

     (205     (386     (7,427     (4,453
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     16,358        16,495        52,611        74,950   

Provision for income taxes

     4,001        6,993        11,209        25,268   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

   $ 12,357      $ 9,502      $ 41,402      $ 49,682   

Income from discontinued operations, net

     5        —          5,798        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 12,362      $ 9,502      $ 47,200      $ 49,682   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic income per share:

        

Continuing operations

   $ 0.26      $ 0.19      $ 0.86      $ 1.02   

Discontinued operations

     —          —          0.13        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic income per share:

   $ 0.26      $ 0.19      $ 0.99      $ 1.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income per share:

        

Continuing operations

   $ 0.25      $ 0.19      $ 0.85      $ 1.01   

Discontinued operations

     —          —          0.12        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income per share:

   $ 0.25      $ 0.19      $ 0.97      $ 1.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used for per share computations:

        

Basic

     48,136        48,905        47,917        48,701   

Diluted

     48,910        49,640        48,508        49,434   

Free Cash Flow

(In thousands)

   Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
   2010     2011     2010     2011  

Net cash provided by operating activities

   $ 16,468      $ 16,746      $ 49,166      $ 77,733   

Taxes related to gain on sale of Gear Products, Inc.

     6,646        —          6,646        —     

Net purchases of property, plant, and equipment

     (5,952     (15,216     (19,843     (39,406
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ 17,162      $ 1,530      $ 35,969      $ 38,327   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

- 7 -


Condensed Consolidated Balance Sheets

(In thousands)

   December 31,      December 31,  
   2010      2011  

Assets:

     

Cash and cash equivalents

   $ 80,708       $ 62,118   

Accounts receivable

     79,223         133,965   

Inventories

     100,445         151,494   

Other current assets

     28,526         36,911   

Property, plant, and equipment, net

     108,348         155,872   

Other non-current assets

     183,637         344,212   
  

 

 

    

 

 

 

Total assets

   $ 580,887       $ 884,572   
  

 

 

    

 

 

 

Liabilities:

     

Current maturities of long-term debt

   $ 10,250       $ 20,348   

Other current liabilities

     91,105         127,130   

Long-term debt, net of current maturities

     339,750         510,014   

Other long-term liabilities

     97,384         157,615   
  

 

 

    

 

 

 

Total Liabilities

     538,489         815,107   

Stockholders’ equity

     42,398         69,465   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 580,887       $ 884,572   
  

 

 

    

 

 

 

Net debt (Current maturities plus Long-term debt less Cash and cash equivalents)

   $ 269,292       $ 468,244   

 

- 8 -


Sales and Adjusted EBITDA

 

Three Months Ended December 31,

   Forestry, Lawn and
Garden
     Farm, Ranch, and
Agriculture
    Corporate and Other     Total Company  
(in thousands)    2010
Actual
     2011
Actual
     2010
Actual
     2011
Actual
    2010
Actual
    2011
Actual
    2010
Actual
     2011
Actual
 

Total sales

   $ 145,404       $ 165,584       $ 20,419       $ 65,757      $ 5,159      $ 5,174      $ 170,982       $ 236,515   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income

   $ 26,241       $ 26,340       $ 695       $ (647   $ (5,420   $ (4,334   $ 21,516       $ 21,360   

Depreciation

     4,990         5,658         205         1,466        84        85        5,279         7,209   

Amortization / purchase accounting

     382         1,301         1,815         5,437        —          —          2,197         6,738   

Stock compensation

     —           —           —           —          864        1,421        864         1,421   

Inventory and asset impairment charges related to production efficiency programs

     —           —           —           —          —          —          —           —     

Expense associated with business acquisitions

     —           —           —           —          1,248        433        1,248         433   

Other

     —           —           —           —          196        112        196         112   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings before Interest, Taxes, Depreciation, Amortization and certain charges (“Adjusted EBITDA”)

   $ 31,613       $ 33,299       $ 2,715       $ 6,256      $ (3,028   $ (2,283   $ 31,300       $ 37,273   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Twelve Months Ended December 31,

   Forestry, Lawn and
Garden
     Farm, Ranch, and
Agriculture
    Corporate and Other     Total Company  
(in thousands)    2010
Actual
     2011
Actual
     2010
Actual
     2011
Actual
    2010
Actual
    2011
Actual
    2010
Actual
     2011
Actual
 

Total sales

   $ 554,053       $ 659,883       $ 34,200       $ 147,475      $ 23,227      $ 24,272      $ 611,480       $ 831,630   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income

   $ 104,113       $ 115,597       $ 1,671       $ 4,474      $ (20,229   $ (22,118   $ 85,555       $ 97,953   

Depreciation

     20,373         20,888         277         2,244        321        350        20,971         23,482   

Amortization / purchase accounting

     1,525         4,463         3,368         11,179        —          —          4,893         15,642   

Stock compensation

     —           —           —           —          3,255        4,442        3,255         4,442   

Inventory and asset impairment charges related to production efficiency programs

     2,996         491         —           —          —          —          2,996         491   

Expense associated with business acquisitions

     —           —           —           —          1,899        4,383        1,899         4,383   

Other

     —           —           —           —          563        535        563         535   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings before Interest, Taxes, Depreciation, Amortization and certain charges (“Adjusted EBITDA”)

   $ 129,007       $ 141,439       $ 5,316       $ 17,897      $ (14,191   $ (12,408   $ 120,132       $ 146,928   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Pro Forma Twelve Months Ended December 31,

   Total Company  

(in thousands)

   2010
Pro Forma1
     2011
Pro Forma1
     2012
Full Year
Estimate
 

Total sales

   $ 656,600       $ 975,500       $ 1,040,000   
  

 

 

    

 

 

    

 

 

 

Operating income

   $ 89,300       $ 109,964       $ 128,000   

Depreciation

     21,300         26,898         29,000   

Amortization / purchase accounting

     8,100         22,016         17,000   

Stock compensation

     3,255         4,442         6,000   

Inventory and asset impairment charges related to production efficiency programs

     2,996         491         —     

Expense associated with business acquisitions

     1,899         4,383         —     

Other

     563         535         —     
  

 

 

    

 

 

    

 

 

 

Earnings before Interest, Taxes, Depreciation, Amortization and certain charges (“Adjusted EBITDA”)

   $ 127,413       $ 168,729       $ 180,000   
  

 

 

    

 

 

    

 

 

 

 

1) 2010 Pro Forma information includes SpeeCo results as if acquired January 1, 2010, while 2011 Pro Forma information includes KOX, PBL and Woods results as if acquired January 1, 2011.

 

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