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8-K - FORM 8-K ASHLAND INC. - ASHLAND LLCform8k.htm
EX-99.2 - ASHLAND PERFORMANCE MATERIALS - ASHLAND LLCex992.htm
EXHIBIT 99.1

 
Within the following tables, Ashland has disclosed “EBITDA” and “Adjusted EBITDA” results.  Such measurements are not prepared in accordance with U.S. GAAP and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.  Management believes the use of non-GAAP measures on a consolidated and business segment basis assists investors in understanding the ongoing operating performance by presenting comparable financial results between periods.  The non-GAAP information provided is used by Ashland management and may not be determined in a manner consistent with the methodologies used by other companies.  “EBITDA” and “Adjusted EBITDA” provide a supplemental presentation of Ashland’s operating performance on a consolidated and business segment basis.  The appendix following these tables includes a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.


 
 
 
Ashland Specialty Ingredients
                 
(In millions except percent data - preliminary and unaudited)
                 
                   
 
Six months ended March 31, 2014
 
     
Realignment
     
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 1,260     (51 )   $ 1,209  
Gross profit as a percent of sales
    29.2 %     2.6 %     31.8 %
Operating income
    106       7       113  
EBITDA
    237       (4 )     233  
Adjusted EBITDA
    246       (4 )     242  
                         
 
Quarter ended December 31, 2013
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 599     $ (18 )   $ 581  
Gross profit as a percent of sales
    28.3 %     2.6 %     30.9 %
Operating income
    45       6       51  
EBITDA
    110       1       111  
Adjusted EBITDA
    110       1       111  
                         
 
Quarter ended March 31, 2014
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 662     $ (33 )   $ 629  
Gross profit as a percent of sales
    30.2 %     2.4 %     32.6 %
Operating income
    61       -       61  
EBITDA
    127       (6 )     121  
Adjusted EBITDA
    136       (6 )     130  
 
(a)
Reflects the net impact of the Adhesives division into and Intermediates and Solvents division out of Ashland Specialty Ingredients.  The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income offset by the change in depreciation and amortization expense.  No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
 
(b)
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions.  As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
 


 
 
 
 

Ashland Specialty Ingredients
                 
(In millions except percent data - preliminary and unaudited)
                 
                   
 
Year ended September 30, 2013
 
     
Realignment
     
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 2,616     $ (138 )   $ 2,478  
Gross profit as a percent of sales
    30.1 %     0.7 %     30.8 %
Operating income
    281       (38 )     243  
EBITDA
    544       (59 )     485  
Adjusted EBITDA
    550       (59 )     491  
                         
 
Quarter ended December 31, 2012
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 622     $ (41 )   $ 581  
Gross profit as a percent of sales
    31.0 %     0.8 %     31.8 %
Operating income
    72       (12 )     60  
EBITDA
    138       (17 )     121  
Adjusted EBITDA
    116       (17 )     99  
                         
 
Quarter ended March 31, 2013
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 682     $ (42 )   $ 640  
Gross profit as a percent of sales
    30.5 %     0.8 %     31.3 %
Operating income
    87       (12 )     75  
EBITDA
    152       (17 )     135  
Adjusted EBITDA
    156       (17 )     139  
                         
 
Quarter ended June 30, 2013
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 716     $ (43 )   $ 673  
Gross profit as a percent of sales
    28.5 %     1.7 %     30.2 %
Operating income
    92       (5 )     87  
EBITDA
    158       (10 )     148  
Adjusted EBITDA
    145       (10 )     135  
                         
 
Quarter ended September 30, 2013
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 596     $ (11 )   $ 585  
Gross profit as a percent of sales
    30.5 %     -0.5 %     30.0 %
Operating income
    30       (10 )     20  
EBITDA
    95       (15 )     80  
Adjusted EBITDA
    132       (15 )     117  
 
(a)
Reflects the net impact of the Adhesives division into and Intermediates and Solvents division out of Ashland Specialty Ingredients.  The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income offset by the change in depreciation and amortization expense.  No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
 
(b)
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions.  As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
 


 
 
 
 

Ashland Specialty Ingredients
                 
(In millions except percent data - preliminary and unaudited)
                 
                   
 
Year ended September 30, 2012
 
     
Realignment
     
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 2,878     $ (179 )   $ 2,699  
Gross profit as a percent of sales
    33.0 %     0.6 %     33.6 %
Operating income
    457       (58 )     399  
EBITDA
    722       (80 )     642  
Adjusted EBITDA
    763       (80 )     683  
                         
 
Quarter ended September 30, 2012
 
         
Realignment
         
 
As Reported (b)
 
net impact (a)
 
As Amended (b)
 
Sales
  $ 734     $ (34 )   $ 700  
Gross profit as a percent of sales
    34.0 %     1.0 %     35.0 %
Operating income
    115       (8 )     107  
EBITDA
    180       (13 )     167  
Adjusted EBITDA
    193       (13 )     180  
 
(a)
Reflects the net impact of the Adhesives division into and Intermediates and Solvents division out of Ashland Specialty Ingredients.  The realignment net impact change for EBITDA and Adjusted EBITDA represents the change in operating income offset by the change in depreciation and amortization expense.  No key items that would affect Adjusted EBITDA were moved between business segments as a result of the realignment.
 
(b)
Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions.  As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.
 

 
 
 
 
 
 
APPENDIX TO EXHIBIT 99.1
Ashland Specialty Ingredients
           
RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
       
(In millions except percent data - preliminary and unaudited)
           
             
 
Six months ended March 31, 2014
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 106     $ 113  
Depreciation and amortization
    131       120  
EBITDA
    237       233  
Impairment of in-process research and development assets
    9       9  
Adjusted EBITDA
  $ 246     $ 242  
                 
 
Quarter ended December 31, 2013
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 45     $ 51  
Depreciation and amortization
    65       60  
EBITDA
  $ 110     $ 111  
                 
 
Quarter ended March 31, 2014
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 61     $ 61  
Depreciation and amortization
    66       60  
EBITDA
    127       121  
Impairment of in-process research and development assets
    9       9  
Adjusted EBITDA
  $ 136     $ 130  
                 
(a) Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.


 
 
 
 

Ashland Specialty Ingredients
           
RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
       
(In millions except percent data - preliminary and unaudited)
           
             
 
Year ended September 30, 2013
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 281     $ 243  
Depreciation and amortization
    263       242  
EBITDA
    544       485  
Settled claim
    (13 )     (13 )
Insurance settlement
    (22 )     (22 )
Impairment of in-process research and development assets
    41       41  
Adjusted EBITDA
  $ 550     $ 491  
                 
 
Quarter ended December 31, 2012
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 72     $ 60  
Depreciation and amortization
    66       61  
EBITDA
    138       121  
Insurance settlement
    (22 )     (22 )
Adjusted EBITDA
  $ 116     $ 99  
                 
 
Quarter ended March 31, 2013
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 87     $ 75  
Depreciation and amortization
    65       60  
EBITDA
    152       135  
Impairment of in-process research and development assets
    4       4  
Adjusted EBITDA
  $ 156     $ 139  
                 
 
Quarter ended June 30, 2013
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 92     $ 87  
Depreciation and amortization
    66       61  
EBITDA
    158       148  
Settled claim
    (13 )     (13 )
Adjusted EBITDA
  $ 145     $ 135  
                 
 
Quarter ended September 30, 2013
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 30     $ 20  
Depreciation and amortization
    65       60  
EBITDA
    95       80  
Impairment of in-process research and development assets
    37       37  
Adjusted EBITDA
  $ 132     $ 117  
                 
(a) Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.


 
 
 
 

Ashland Specialty Ingredients
           
RECONCILIATION OF NON-GAAP DATA - EBITDA and ADJUSTED EBITDA
       
(In millions except percent data - preliminary and unaudited)
           
             
 
Year ended September 30, 2012
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 457     $ 399  
Depreciation and amortization
    265       243  
EBITDA
    722       642  
Inventory fair value adjustment
    28       28  
Impairment of in-process research and development assets
    13       13  
Adjusted EBITDA
  $ 763     $ 683  
                 
 
Quarter ended September 30, 2012
 
 
As Reported (a)
 
As Amended (a)
 
Operating income
  $ 115     $ 107  
Depreciation and amortization
    65       60  
EBITDA
    180       167  
Impairment of in-process research and development assets
    13       13  
Adjusted EBITDA
  $ 193     $ 180  
                 
(a) Quarterly totals may not sum to year-to-date results due to quarterly rounding conventions. As reported balances have been previously disclosed within quarterly earnings releases and Form 10-Qs filed with the SEC and posted on Ashland's website.