EX-99.1 2 gffq2fy15earningsreleasedr.htm EXHIBIT 99.1 GFFQ2FY15EarningsReleaseDraft


                             

Griffon Corporation Announces Second Quarter Results

NEW YORK, NEW YORK, April 30, 2015 – Griffon Corporation (“Griffon” or the “Company”) (NYSE: GFF) today reported results for the fiscal second quarter ended March 31, 2015.     

Revenue totaled $500.0 million, decreasing 2% from the prior year quarter; excluding the impact of foreign currency, revenue increased 2%, primarily due to the contribution from acquisitions. Home & Building Products (“HBP”) revenue increased 5% over the prior year quarter, while Clopay Plastics (“Plastics”) and Telephonics revenue decreased 9% and 5%, respectively.

Segment adjusted EBITDA totaled $44.7 million, decreasing 3% from the prior year quarter; excluding the impact of foreign currency, segment adjusted EBITDA increased 3%, primarily due to the contribution from acquisitions. Segment adjusted EBITDA is defined as net income excluding interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges and acquisition-related expenses.

Net income totaled $5.1 million, or $0.11 per share, compared to a net loss of $25.8 million, or $0.53 per share, in the prior year quarter. Current quarter results included discrete tax provisions of $0.2 million. The prior year quarter included a charge related to debt extinguishment of $38.9 million ($25.0 million, net of tax or $0.51 per share), restructuring costs of $0.7 million ($0.4 million, net of tax, or $0.01 per share), benefit of debt extinguishment on full year effective tax rate of $5.8 million or $0.12 per share and discrete tax provisions of $0.6 million, or $0.01 per share. Excluding these items from both periods, current quarter adjusted net income was $5.3 million, or $0.11 per share, compared to $6.0 million, or $0.12 per share, in the prior year quarter. Excluding the unfavorable impact of foreign currency, current quarter net income would have been $6.6 million, a 10% increase over the prior year quarter, or $0.14 per share.

Ronald J. Kramer, Chief Executive Officer, commented, “We are very pleased with our solid performance this quarter, despite the impact of foreign currency on our results, and are confident in our ability to meet our 2015 financial targets. Our businesses are poised for continued growth in earnings through the execution of our strategic initiatives. We are optimistic about our prospects to continue to generate attractive returns for our shareholders.”

Segment Operating Results
Home & Building Products
Revenue totaled $263.6 million, increasing 5% compared to the prior year quarter, reflecting a 6% contribution from the Cyclone acquisition, partially offset by a 1% unfavorable foreign currency impact. The AMES Companies, Inc. (“AMES”) revenue decreased 1% due to reduced sales of snow tools, and reduced sales of lawn tools and North American pots and planters due to a late spring, partially offset by the inclusion of Cyclone results contributing 8%; foreign currency was 2% unfavorable. Clopay Building

1


Products ("CBP") revenue increased 15%, primarily due to increased volume contributing 10% with the balance primarily due to product mix; foreign currency was 1% unfavorable.

Segment adjusted EBITDA was $17.3 million, increasing 1% compared to the prior year quarter, reflecting a 9% contribution from the Cyclone acquisition, favorable mix and increased volume at CBP, partially offset by the impact of reduced sales at AMES and a 5% unfavorable foreign currency impact.

HBP recognized $0.7 million in restructuring and related exit costs for the quarter ended March 31, 2014; such charges primarily related to one-time termination benefits, facility and other personnel costs, and asset impairment charges related to the AMES U.S. plant consolidation initiative undertaken in January 2013 and completed at the end of the 2015 first quarter. There were no such charges in the current year. Management continues to estimate that AMES' initiative will result in annualized cash savings exceeding $10.0 million; realization of expected savings began in the current quarter.

Telephonics
Revenue totaled $98.7 million, decreasing 5% from the prior year quarter, primarily due to the timing of awards and work performed on Communications and Surveillance Systems, specifically Communication Open System Architecture and Secure Digital Intercommunications product sales, partially offset by the timing of work performed on the Multi-Mode ASW radar.

Segment adjusted EBITDA was $11.6 million, decreasing 7% from the prior year quarter, primarily due to reduced revenue.

Contract backlog totaled $482 million at March 31, 2015, compared to $494 million at September 30, 2014, with approximately 73% expected to be fulfilled within the next twelve months.

Plastic Products
Revenue totaled $137.7 million, decreasing 9% compared to the prior year quarter, reflecting an unfavorable foreign currency impact of 7% and a 4% unfavorable mix impact, partially offset by the benefit of increased volume contributing 2%. Resin had no material impact on revenue in the quarter. Plastics adjusts selling prices based on underlying resin costs on a delayed basis.

Segment adjusted EBITDA was $15.8 million, decreasing 3% from the prior year quarter, with the impact of the revenue decrease and unfavorable mix more than offset by the change in the impact of resin pricing pass through of 27% and the benefit from improved operations. The unfavorable foreign currency impact was 12%.

Taxes
In both the quarter and six months ended March 31, 2015, the Company reported pretax income compared to losses in the prior year respective periods.  The Company recognized tax provisions of 37.5% and 37.7% for the quarter and six months ended March 31, 2015, respectively, compared to benefits of 16.1% and 13.2%, respectively, in the comparable prior year periods. 
The current quarter and six months include $0.2 million and $0.5 million, respectively, of provisions for discrete items resulting primarily from the provision for taxes on repatriation of foreign earnings, partially offset by the benefit of the retroactive extension of the federal R&D credit signed into law December 19, 2014, and release of a valuation allowance. The comparable prior year periods included provisions of $0.6 million and $0.3 million, respectively, from discrete items resulting primarily from the conclusion of tax

2


audits in certain jurisdictions and the impact of enacted tax law changes. Excluding discrete items, the effective tax rates for the quarter and six months ended March 31, 2015 were 35.7% and 35.2%, respectively, compared to benefit rates of 18.1% and 14.4% in the comparable prior year periods, respectively.

Balance Sheet and Capital Expenditures
At March 31, 2015, the Company had cash and equivalents of $42.6 million, total debt outstanding of $867.5 million, net of discounts and deferred costs, and $134 million available for borrowing under its revolving credit facility. Capital expenditures were $21 million in the current quarter.

Share Repurchases
On May 1, 2014, Griffon’s Board of Directors authorized the repurchase of up to $50 million of Griffon’s outstanding common stock; on March 20, 2015, an additional $50 million was authorized. Under these programs, the Company may purchase shares in the open market, including pursuant to a 10b5-1 plan, or in privately negotiated transactions. During the quarter ended March 31, 2015, Griffon purchased 1,581,200 shares of common stock under the May 1, 2014 program, for a total of $24.2 million or $15.31 per share. At March 31, 2015, $52.4 million remains under existing Board authorizations.

From August 2011 to March 31, 2015, Griffon repurchased 14,045,547 shares of its common stock for a total of $158.7 million or $11.30 per share.

Conference Call Information
The Company will hold a conference call today, April 30, 2015, at 4:30 PM ET.

The call can be accessed by dialing 1-888-596-2569 (U.S. participants) or 1-913-312-0380 (International participants). Callers should ask to be connected to the Griffon Corporation teleconference or provide conference ID number 1672773.

A replay of the call will be available starting on April 30, 2015 at 7:30 PM ET by dialing 1-877-870-5176 (U.S.) or 1-858-384-5517 (International), and entering the conference ID number: 1672773. The replay will be available through May 14, 2015.

Forward-looking Statements
“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, industries in which Griffon operates and the United States and global economies that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates,” “supports,” “plans,” “projects,” “expects,” “believes,” “should,” “would,” “could,” “hope,” “forecast,” “management is of the opinion,” “may,” “will,” “estimates,” “intends,” “explores,” “opportunities,” the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; the Griffon's ability to achieve expected savings from cost control, integration and disposal initiatives; the ability to identify and successfully consummate and integrate value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon’s operating companies; the ability of Griffon’s operating companies to expand into new geographic and product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations;

3


reduced military spending by the government on projects for which Griffon’s Telephonics Corporation supplies products, including as a result of sequestration at such time as the budgetary cuts mandated by sequestration begin to take effect; the ability of the federal government to fund and conduct its operations; increases in the cost of raw materials such as resin, wood and steel; changes in customer demand or loss of a material customer at one of Griffon's operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon’s businesses; political events that could impact the worldwide economy; a downgrade in the Griffon’s credit ratings; changes in international economic conditions including interest rate and currency exchange fluctuations; the reliance by certain of Griffon’s businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon’s businesses, which could impact margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation and environmental matters; unfavorable results of government agency contract audits of Telephonics Corporation; Griffon’s ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of the businesses of certain Griffon’s operating companies; and possible terrorist threats and actions and their impact on the global economy. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company’s Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Griffon Corporation
Griffon Corporation is a diversified management and holding company that conducts business through wholly owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as in connection with divestitures. In order to further diversify, Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital.

Griffon currently conducts its operations through three reportable segments:

•
Home & Building Products consists of two companies, The AMES Companies, Inc. and Clopay Building Products Company, Inc.:

•
AMES is a global provider of non-powered landscaping products that make work easier for homeowners and professionals.

•
CBP is a leading manufacturer and marketer of residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains.

•
Telephonics Corporation designs, develops and manufactures high-technology integrated information, communication and sensor system solutions for use in military and commercial markets worldwide.
•
Clopay Plastic Products Company, Inc. is an international leader in the development and production of embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications.

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For more information on Griffon and its operating subsidiaries, please see the Company’s website at www.griffoncorp.com.

Company Contact:            Investor Relations Contact:        
Douglas J. Wetmore            Michael Callahan            
EVP & Chief Financial Officer        Senior Vice President
Griffon Corporation            ICR Inc.    
(212) 957-5000                (203) 682-8311
712 Fifth Avenue, 18th Floor
New York, NY 10019



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Griffon evaluates performance and allocates resources based on each segment's operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges and acquisition-related expenses, as applicable ("Segment adjusted EBITDA"). Griffon believes this information is useful to investors.

The following table provides a reconciliation of Segment adjusted EBITDA to Income (loss) before taxes:

GRIFFON CORPORATION AND SUBSIDIARIES
OPERATING HIGHLIGHTS
(in thousands)
(Unaudited)
 
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
REVENUE
2015
 
2014
 
2015
 
2014
Home & Building Products:
 

 
 

 
 

 
 

AMES
$
159,092

 
$
160,705

 
$
292,202

 
$
257,313

CBP
104,513

 
90,838

 
243,113

 
212,680

Home & Building Products
263,605

 
251,543

 
535,315

 
469,993

Telephonics
98,687

 
104,185

 
189,345

 
200,210

Plastics
137,728

 
151,959

 
277,520

 
290,942

Total consolidated net sales
$
500,020

 
$
507,687

 
$
1,002,180

 
$
961,145

 
 
 
 
 
 
 
 
Segment adjusted EBITDA:
 

 
 

 
 

 
 

Home & Building Products
$
17,330

 
$
17,124

 
$
41,800

 
$
36,191

Telephonics
11,616

 
12,535

 
21,648

 
24,931

Plastics
15,764

 
16,216

 
30,315

 
28,959

Total Segment adjusted EBITDA
44,710

 
45,875

 
93,763

 
90,081

Net interest expense
(11,857
)
 
(12,361
)
 
(23,494
)
 
(25,462
)
Segment depreciation and amortization
(17,078
)
 
(16,336
)
 
(34,225
)
 
(33,032
)
Unallocated amounts
(7,580
)
 
(8,391
)
 
(15,844
)
 
(16,374
)
Loss from debt extinguishment, net
—

 
(38,890
)
 
—

 
(38,890
)
Restructuring charges
—

 
(692
)
 
—

 
(1,534
)
Acquisition costs
—

 
—

 
—

 
(798
)
Income (loss) before taxes
$
8,195

 
$
(30,795
)
 
$
20,200

 
$
(26,009
)


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The following is a reconciliation of each segment's operating results to Segment adjusted EBITDA:

GRIFFON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
BY REPORTABLE SEGMENT
(in thousands)
(Unaudited)
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Home & Building Products
 
 
 
 
 
 
 
Segment operating profit
$
8,651

 
$
8,818

 
$
25,020

 
$
18,211

Depreciation and amortization
8,679

 
7,614

 
16,780

 
15,648

Restructuring charges
—

 
692

 
—

 
1,534

Acquisition costs
—

 
—

 
—

 
798

Segment adjusted EBITDA
17,330

 
17,124

 
41,800

 
36,191

 
 
 
 
 
 
 
 
Telephonics
 
 
 
 
 
 
 
Segment operating profit
9,114

 
10,677

 
16,631

 
21,329

Depreciation and amortization
2,502

 
1,858

 
5,017

 
3,602

Segment adjusted EBITDA
11,616

 
12,535

 
21,648

 
24,931

 
 
 
 
 
 
 
 
Clopay Plastic Products
 
 
 
 
 
 
 
Segment operating profit
9,867

 
9,352

 
17,887

 
15,177

Depreciation and amortization
5,897

 
6,864

 
12,428

 
13,782

Segment adjusted EBITDA
15,764

 
16,216

 
30,315

 
28,959

 
 
 
 
 
 
 
 
All segments:
 
 
 
 
 
 
 
Income from operations - as reported
20,809

 
19,673

 
44,902

 
36,654

Unallocated amounts
7,580

 
8,391

 
15,844

 
16,374

Other, net
(757
)
 
783

 
(1,208
)
 
1,689

Segment operating profit
27,632

 
28,847

 
59,538

 
54,717

Depreciation and amortization
17,078

 
16,336

 
34,225

 
33,032

Restructuring charges
—

 
692

 
—

 
1,534

  Acquisition costs
—

 
—

 
—

 
798

Segment adjusted EBITDA
$
44,710

 
$
45,875

 
$
93,763

 
$
90,081


Unallocated amounts typically include general corporate expenses not attributable to any reportable segment.

7


GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
(Unaudited)
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Revenue
$
500,020

 
$
507,687

 
$
1,002,180

 
$
961,145

Cost of goods and services
385,645

 
397,700

 
769,816

 
745,655

Gross profit
114,375

 
109,987

 
232,364

 
215,490

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
93,566

 
89,622

 
187,462

 
177,302

Restructuring and other related charges
—

 
692

 
—

 
1,534

Total operating expenses
93,566

 
90,314

 
187,462

 
178,836

 
 
 
 
 
 
 
 
Income from operations
20,809

 
19,673

 
44,902

 
36,654

 
 
 
 
 
 
 
 
Other income (expense)
 

 
 

 
 

 
 

Interest expense
(12,012
)
 
(12,389
)
 
(23,766
)
 
(25,523
)
Interest income
155

 
28

 
272

 
61

Loss from debt extinguishment, net
—

 
(38,890
)
 
—

 
(38,890
)
Other, net
(757
)
 
783

 
(1,208
)
 
1,689

Total other expense, net
(12,614
)
 
(50,468
)
 
(24,702
)
 
(62,663
)
 
 
 
 
 
 
 
 
Income (loss) before taxes
8,195

 
(30,795
)
 
20,200

 
(26,009
)
Provision (benefit) for income taxes
3,073

 
(4,970
)
 
7,607

 
(3,420
)
Net income (loss)
$
5,122

 
$
(25,825
)
 
$
12,593

 
$
(22,589
)
 
 
 
 
 
 
 
 
Basic income per common share
$
0.11

 
$
(0.53
)
 
$
0.27

 
$
(0.44
)
Weighted-average shares outstanding
45,349

 
48,990

 
45,829

 
50,872

 
 
 
 
 
 
 
 
Diluted income per common share
$
0.11

 
$
(0.53
)
 
$
0.26

 
$
(0.44
)
Weighted-average shares outstanding
47,669

 
48,990

 
47,682

 
50,872

 
 
 
 
 
 
 
 
Net income (loss)
$
5,122

 
$
(25,825
)
 
$
12,593

 
$
(22,589
)
Other comprehensive income (loss), net of taxes:
 

 
 

 
 

 
 

Foreign currency translation adjustments
(30,384
)
 
1,224

 
(45,884
)
 
(1,913
)
Pension and other post retirement plans
353

 
1,099

 
706

 
1,415

Loss on cash flow hedge
(80
)
 
—

 
(154
)
 
—

Gain (loss) on available-for-sale securities
92

 
—

 
(870
)
 
—

Total other comprehensive income (loss), net of taxes
(30,019
)
 
2,323

 
(46,202
)
 
(498
)
Comprehensive income (loss), net
$
(24,897
)
 
$
(23,502
)
 
$
(33,609
)
 
$
(23,087
)

8


GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
(Unaudited)
At March 31, 2015
 
At September 30, 2014
 
CURRENT ASSETS
 
 
 
 
Cash and equivalents
$
42,602

 
$
92,405

 
Accounts receivable, net of allowances of $6,121 and $7,336
286,452

 
258,436

 
Contract costs and recognized income not yet billed, net of progress payments of $14,592 and $16,985 at March 31, 2015 and September 30, 2014, respectively.
94,844

 
109,930

 
Inventories, net
320,297

 
290,135

 
Prepaid and other current assets
44,525

 
62,569

 
Assets of discontinued operations
1,638

 
1,624

 
Total Current Assets
790,358

 
815,099

 
PROPERTY, PLANT AND EQUIPMENT, net
361,200

 
370,565

 
GOODWILL
358,695

 
371,846

 
INTANGIBLE ASSETS, net
220,811

 
233,623

 
OTHER ASSETS
13,943

 
13,302

 
ASSETS OF DISCONTINUED OPERATIONS
2,246

 
2,126

 
Total Assets
$
1,747,253

 
$
1,806,561

 
 
 
 
 
 
CURRENT LIABILITIES
 

 
 

 
Notes payable and current portion of long-term debt
$
9,162

 
$
7,886

 
Accounts payable
182,369

 
218,703

 
Accrued liabilities
84,494

 
101,292

 
Liabilities of discontinued operations
2,528

 
3,282

 
Total Current Liabilities
278,553

 
331,163

 
LONG-TERM DEBT, net
858,315

 
791,301

 
OTHER LIABILITIES
142,229

 
148,240

 
LIABILITIES OF DISCONTINUED OPERATIONS
3,524

 
3,830

 
Total Liabilities
1,282,621

 
1,274,534

 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
SHAREHOLDERS’ EQUITY
 

 
 

 
Total Shareholders’ Equity
464,632

 
532,027

 
Total Liabilities and Shareholders’ Equity
$
1,747,253

 
$
1,806,561

 
 
 
 
 
 



9


GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 
Six Months Ended March 31,
 
 
2015
 
2014
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

 
Net income (loss)
$
12,593

 
$
(22,589
)
 
Adjustments to reconcile net income to net cash used in operating activities:
 

 
 

 
Depreciation and amortization
34,453

 
33,232

 
Stock-based compensation
5,372

 
4,996

 
Asset impairment charges - restructuring
—

 
169

 
Provision for losses on accounts receivable
242

 
132

 
Amortization of debt discounts and issuance costs
3,265

 
3,188

 
Loss from debt extinguishment, net
—

 
38,890

 
Deferred income taxes
1,282

 
(57
)
 
(Gain) loss on sale/disposal of assets and investments
(315
)
 
180

 
Change in assets and liabilities, net of assets and liabilities acquired:
 

 
 

 
Increase in accounts receivable and contract costs and recognized income not yet billed
(23,424
)
 
(46,834
)
 
Increase in inventories
(39,252
)
 
(23,858
)
 
Decrease in prepaid and other assets
754

 
3,482

 
Decrease in accounts payable, accrued liabilities and income taxes payable
(40,244
)
 
(18,713
)
 
Other changes, net
2,223

 
1,206

 
Net cash used in operating activities
(43,051
)
 
(26,576
)
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

 
Acquisition of property, plant and equipment
(39,713
)
 
(34,845
)
 
Acquired businesses, net of cash acquired
—

 
(22,781
)
 
Proceeds from sale of assets
177

 
294

 
Proceeds from sale of investments
8,891

 
—

 
Net cash used in investing activities
(30,645
)
 
(57,332
)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
Proceeds from issuance of common stock
285

 
584

 
Dividends paid
(3,911
)
 
(3,290
)
 
Purchase of shares for treasury
(37,577
)
 
(63,370
)
 
Proceeds from long-term debt
99,556

 
644,514

 
Payments of long-term debt
(29,425
)
 
(586,310
)
 
Change in short-term borrowings
(572
)
 
4,908

 
Financing costs
(590
)
 
(10,687
)
 
Purchase of ESOP shares
—

 
(10,000
)
 
Tax benefit from exercise/vesting of equity awards, net
345

 
273

 
Other, net
95

 
144

 
Net cash provided by (used in) financing activities
28,206

 
(23,234
)
 
CASH FLOWS FROM DISCONTINUED OPERATIONS:
 

 
 

 
Net cash used in operating activities
(545
)
 
(640
)
 
Net cash used in discontinued operations
(545
)
 
(640
)
 
Effect of exchange rate changes on cash and equivalents
(3,768
)
 
(415
)
 
NET DECREASE IN CASH AND EQUIVALENTS
(49,803
)
 
(108,197
)
 
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
92,405

 
178,130

 
CASH AND EQUIVALENTS AT END OF PERIOD
$
42,602

 
$
69,933

 
 
 
 
 
 

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Griffon evaluates performance based on Earnings per share and Net income excluding restructuring charges, acquisition-related expenses, and discrete tax items, as applicable. Griffon believes this information is useful to investors. The following table provides a reconciliation of Net income (loss) to adjusted net income and earnings per share to Adjusted earnings per share:

GRIFFON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
(in thousands, except per share data)
(Unaudited)
 
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Net income (loss)
$
5,122

 
$
(25,825
)
 
$
12,593

 
$
(22,589
)
 
 
 
 
 
 
 
 
Adjusting items, net of tax:
 

 
 

 
 

 
 

Loss from debt extinguishment, net
—

 
24,964

 
—

 
24,964

Restructuring charges
—

 
429

 
—

 
951

Acquisition costs
—

 
—

 
—

 
495

Extinguishment impact on period tax rate (a)
—

 
5,848

 
—

 
5,848

Discrete tax provisions
145

 
609

 
494

 
320

 
 
 
 
 
 
 
 
Adjusted net income
$
5,267

 
$
6,025

 
$
13,087

 
$
9,989

 
 
 
 
 
 
 
 
Diluted income (loss) per common share
$
0.11

 
$
(0.53
)
 
0.26

 
$
(0.44
)
 
 
 
 
 
 
 
 
Adjusting items, net of tax:
 

 
 

 
 

 
 

Loss from debt extinguishment, net
—

 
0.51

 
—

 
0.49

Restructuring charges
—

 
0.01

 
—

 
0.02

Acquisition costs
—

 
—

 
—

 
0.01

Extinguishment impact on period tax rate (a)
—

 
0.12

 
—

 
0.12

Discrete tax provisions
—

 
0.01

 
0.01

 
0.01

 
 
 
 
 
 
 
 
Adjusted earnings per common share
$
0.11

 
$
0.12

 
0.27

 
$
0.20

 
 
 
 
 
 
 
 
Weighted-average shares outstanding (in thousands)
47,669

 
48,990

 
47,682

 
50,872

 
 
 
 
 
 
 
 



    

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