Washington, D.C. 20549
|
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
For the quarterly period ended
|
September 30, 2013
|
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
For the transition period from
|
to
|
AMCOL INTERNATIONAL CORPORATION
|
Delaware
|
36-0724340
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
2870 Forbs Avenue, Hoffman Estates, IL
|
60192
|
|
(Address of principal executive offices)
|
(Zip Code)
|
(847) 851-1500
|
(Registrant’s telephone number, including area code)
|
Large accelerated filer x
|
Smaller reporting company o
|
Class
|
Outstanding at October 31, 2013
|
|
(Common stock, $.01 par value)
|
32,443,588 Shares
|
|
|
Page No.
|
Part I - Financial Information
|
|
|
|
|
|
Item 1:
|
Financial Statements
|
|
|
3
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
|
7
|
|
|
|
|
|
8
|
|
|
|
|
|
9
|
|
|
|
|
Item 2:
|
25
|
|
|
|
|
Item 3:
|
41
|
|
|
|
|
Item 4:
|
41
|
|
|
|
|
Part II - Other Information
|
|
|
|
|
|
Item 4:
|
42
|
|
|
|
|
Item 6:
|
43
|
Item 1: | Financial Statements |
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
(unaudited)
|
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
38.1
|
$
|
40.0
|
||||
Accounts receivable, net
|
226.3
|
202.7
|
||||||
Inventories
|
154.4
|
153.8
|
||||||
Prepaid expenses
|
24.0
|
17.0
|
||||||
Assets held-for-sale
|
14.5
|
0.2
|
||||||
Income tax receivable
|
17.4
|
7.0
|
||||||
Available-for-sale securities
|
9.1
|
-
|
||||||
Deferred income taxes
|
6.7
|
7.0
|
||||||
Other
|
0.8
|
1.8
|
||||||
|
||||||||
Total current assets
|
491.3
|
429.5
|
||||||
|
||||||||
Noncurrent assets:
|
||||||||
Property, plant, equipment, and mineral rights and reserves:
|
||||||||
Land
|
10.8
|
13.0
|
||||||
Mineral rights
|
5.1
|
48.6
|
||||||
Depreciable assets
|
557.7
|
552.0
|
||||||
|
||||||||
|
573.6
|
613.6
|
||||||
Accumulated depreciation and depletion
|
(318.6
|
)
|
(311.7
|
)
|
||||
|
||||||||
|
255.0
|
301.9
|
||||||
|
||||||||
Goodwill
|
68.6
|
70.2
|
||||||
Intangible assets, net
|
28.9
|
33.9
|
||||||
Investment in and advances to affiliates and joint ventures
|
34.5
|
27.8
|
||||||
Available-for-sale securities
|
-
|
14.6
|
||||||
Deferred income taxes
|
5.3
|
7.4
|
||||||
Other assets
|
27.4
|
25.3
|
||||||
|
||||||||
Total noncurrent assets
|
419.7
|
481.1
|
||||||
Total Assets
|
$
|
911.0
|
$
|
910.6
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
(unaudited)
|
|
||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
58.3
|
$
|
51.1
|
||||
Accrued income taxes
|
12.5
|
5.0
|
||||||
Accrued liabilities
|
64.4
|
58.4
|
||||||
Total current liabilities
|
135.2
|
114.5
|
||||||
|
||||||||
Noncurrent liabilities:
|
||||||||
Long-term debt
|
270.9
|
248.8
|
||||||
Pension liabilities
|
38.1
|
37.5
|
||||||
Deferred compensation
|
10.9
|
9.4
|
||||||
Deferred income taxes
|
1.6
|
12.8
|
||||||
Other long-term liabilities
|
19.5
|
22.5
|
||||||
Total noncurrent liabilities
|
341.0
|
331.0
|
||||||
|
||||||||
Shareholders' Equity:
|
||||||||
Common stock
|
0.3
|
0.3
|
||||||
Additional paid in capital
|
115.5
|
105.1
|
||||||
Retained earnings
|
343.0
|
355.2
|
||||||
Accumulated other comprehensive income (loss)
|
(20.2
|
)
|
0.8
|
|||||
Total AMCOL shareholders' equity
|
438.6
|
461.4
|
||||||
|
||||||||
Noncontrolling interest
|
(3.8
|
)
|
3.7
|
|||||
|
||||||||
Total equity
|
434.8
|
465.1
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
911.0
|
$
|
910.6
|
Nine Months Ended
|
Three Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Continuing Operations
|
||||||||||||||||
Net sales
|
$
|
755.2
|
$
|
731.8
|
$
|
263.5
|
$
|
249.2
|
||||||||
Cost of sales
|
605.0
|
527.1
|
246.1
|
180.5
|
||||||||||||
Gross profit
|
150.2
|
204.7
|
17.4
|
68.7
|
||||||||||||
Selling, general and administrative expenses
|
133.6
|
124.9
|
42.0
|
40.3
|
||||||||||||
Operating profit (loss)
|
16.6
|
79.8
|
(24.6
|
)
|
28.4
|
|||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense, net
|
(7.6
|
)
|
(8.0
|
)
|
(2.6
|
)
|
(2.6
|
)
|
||||||||
Other, net
|
(2.0
|
)
|
(2.7
|
)
|
(0.8
|
)
|
-
|
|||||||||
|
(9.6
|
)
|
(10.7
|
)
|
(3.4
|
)
|
(2.6
|
)
|
||||||||
|
||||||||||||||||
Income (loss) before income taxes and income from affiliates and joint ventures
|
7.0
|
69.1
|
(28.0
|
)
|
25.8
|
|||||||||||
Income tax expense (benefit)
|
5.0
|
19.2
|
(4.8
|
)
|
7.6
|
|||||||||||
|
||||||||||||||||
Income (loss) before income from affiliates and joint ventures
|
2.0
|
49.9
|
(23.2
|
)
|
18.2
|
|||||||||||
Income from affiliates and joint ventures
|
2.5
|
3.4
|
0.7
|
1.0
|
||||||||||||
|
||||||||||||||||
Income (loss) from continuing operations
|
4.5
|
53.3
|
(22.5
|
)
|
19.2
|
|||||||||||
Discontinued Operations
|
||||||||||||||||
Income (loss) on discontinued operations
|
(4.0
|
)
|
0.6
|
(4.1
|
)
|
(0.2
|
)
|
|||||||||
Net income (loss)
|
0.5
|
53.9
|
(26.6
|
)
|
19.0
|
|||||||||||
|
||||||||||||||||
Net income (loss) attributable to noncontrolling interests
|
(6.8
|
)
|
(0.2
|
)
|
(6.8
|
)
|
-
|
|||||||||
Net income (loss) attributable to AMCOL shareholders
|
$
|
7.3
|
$
|
54.1
|
$
|
(19.8
|
)
|
$
|
19.0
|
|||||||
|
||||||||||||||||
Weighted average common shares outstanding
|
32.4
|
32.0
|
32.5
|
32.1
|
||||||||||||
|
||||||||||||||||
Weighted average common and common equivalent shares outstanding
|
32.7
|
32.3
|
32.5
|
32.5
|
||||||||||||
|
||||||||||||||||
Amounts attributable to AMCOL shareholders
|
||||||||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
11.3
|
$
|
53.5
|
$
|
(15.7
|
)
|
$
|
19.2
|
|||||||
Discontinued operations, net of tax
|
(4.0
|
)
|
0.6
|
(4.1
|
)
|
(0.2
|
)
|
|||||||||
Net income (loss)
|
$
|
7.3
|
$
|
54.1
|
$
|
(19.8
|
)
|
$
|
19.0
|
|||||||
|
||||||||||||||||
Earnings (loss) per share attributable to AMCOL shareholders:
|
||||||||||||||||
|
||||||||||||||||
Basic earnings (loss) per share
|
||||||||||||||||
Continuing operations
|
$
|
0.34
|
$
|
1.67
|
$
|
(0.48
|
)
|
$
|
0.60
|
|||||||
Discontinued operations
|
(0.12
|
)
|
0.02
|
(0.13
|
)
|
(0.01
|
)
|
|||||||||
Net income (loss)
|
$
|
0.22
|
$
|
1.69
|
$
|
(0.61
|
)
|
$
|
0.59
|
|||||||
|
||||||||||||||||
Diluted earnings (loss) per share
|
||||||||||||||||
Continuing operations
|
$
|
0.34
|
$
|
1.65
|
$
|
(0.48
|
)
|
$
|
0.60
|
|||||||
Discontinued operations
|
(0.12
|
)
|
0.02
|
(0.13
|
)
|
(0.01
|
)
|
|||||||||
Net income (loss)
|
$
|
0.22
|
$
|
1.67
|
$
|
(0.61
|
)
|
$
|
0.59
|
|||||||
|
||||||||||||||||
Dividends declared per share
|
$
|
0.60
|
$
|
0.56
|
$
|
0.20
|
$
|
0.20
|
Nine Months Ended
September 30,
|
Three Months Ended
September 30,
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net income (loss)
|
$
|
0.5
|
$
|
53.9
|
$
|
(26.6
|
)
|
$
|
19.0
|
|||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
(19.4
|
)
|
4.3
|
1.3
|
7.8
|
|||||||||||
Unrealized gain (loss) on available-for-sale securities
|
(4.3
|
)
|
4.1
|
(1.6
|
)
|
4.9
|
||||||||||
Unrealized gain (loss) on interest rate swap agreements
|
1.4
|
-
|
0.2
|
-
|
||||||||||||
Pension adjustment
|
0.6
|
0.6
|
0.2
|
0.2
|
||||||||||||
Total other comprehensive income (loss), net of tax
|
(21.7
|
)
|
9.0
|
0.1
|
12.9
|
|||||||||||
Total comprehensive income (loss) including noncontrolling interests
|
(21.2
|
)
|
62.9
|
(26.5
|
)
|
31.9
|
||||||||||
|
||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6.8
|
)
|
(0.2
|
)
|
(6.8
|
)
|
-
|
|||||||||
Less: Foreign currency translation adjustments attributable to noncontrolling interests
|
(0.7
|
)
|
(0.1
|
)
|
(0.2
|
)
|
-
|
|||||||||
Total comprehensive income (loss) attributable to noncontrolling interests
|
(7.5
|
)
|
(0.3
|
)
|
(7.0
|
)
|
-
|
|||||||||
|
||||||||||||||||
Total comprehensive income (loss) attributable to AMCOL shareholders
|
$
|
(13.7
|
)
|
$
|
63.2
|
$
|
(19.5
|
)
|
$
|
31.9
|
AMCOL Shareholders
|
||||||||||||||||||||||||||||
|
Total Equity
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Common Stock
|
Treasury Stock
|
Paid-in Capital
|
Noncontrolling Interest
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
394.9
|
$
|
314.3
|
$
|
(14.7
|
)
|
$
|
0.3
|
$
|
(3.4
|
)
|
$
|
94.3
|
$
|
4.1
|
||||||||||||
Net income (loss)
|
53.9
|
54.1
|
(0.2
|
)
|
||||||||||||||||||||||||
Cash dividends
|
(17.9
|
)
|
(17.9
|
)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Issuance of treasury shares pursuant to employee stock compensation plans
|
4.8
|
2.6
|
2.2
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Tax benefit from employee stock compensation plans
|
(0.1
|
)
|
(0.1
|
)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Vesting of common stock in connection with employee stock compensation plans
|
4.4
|
4.4
|
||||||||||||||||||||||||||
Other comprehensive income (loss)
|
9.0
|
9.1
|
(0.1
|
)
|
||||||||||||||||||||||||
Contribution from noncontrolling partner
|
0.1
|
0.1
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance at September 30, 2012
|
449.1
|
350.5
|
(5.6
|
)
|
0.3
|
(0.8
|
)
|
100.9
|
3.8
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
465.1
|
$
|
355.2
|
$
|
0.8
|
$
|
0.3
|
$
|
-
|
$
|
105.1
|
$
|
3.7
|
||||||||||||||
Net income (loss)
|
0.5
|
7.3
|
(6.8
|
)
|
||||||||||||||||||||||||
Cash dividends
|
(19.5
|
)
|
(19.5
|
)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans
|
6.5
|
6.5
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Tax benefit from employee stock compensation plans
|
(0.2
|
)
|
(0.2
|
)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Vesting of common stock in connection with employee stock compensation plans
|
4.0
|
4.0
|
||||||||||||||||||||||||||
Other comprehensive income (loss)
|
(21.7
|
)
|
(21.0
|
)
|
(0.7
|
)
|
||||||||||||||||||||||
Contribution from noncontrolling partner
|
0.1
|
0.1
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance at September 30, 2013
|
434.8
|
343.0
|
(20.2
|
)
|
0.3
|
-
|
115.5
|
(3.8
|
)
|
Nine Months Ended
|
||||||||
September 30,
|
||||||||
|
2013
|
2012
|
||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
0.5
|
$
|
53.9
|
||||
|
||||||||
Adjustments to reconcile from net income (loss) to net cash provided by (used in) operating activities:
|
||||||||
Depreciation, depletion, and amortization
|
37.7
|
33.3
|
||||||
Asset impairment charge
|
59.7
|
0.8
|
||||||
Other non-cash items
|
(6.0
|
)
|
4.5
|
|||||
Changes in assets and liabilities, net of effects of acquisitions:
|
||||||||
Decrease (increase) in current assets
|
(57.6
|
)
|
(42.6
|
)
|
||||
Decrease (increase) in noncurrent assets
|
(2.5
|
)
|
-
|
|||||
Increase (decrease) in current liabilities
|
22.9
|
17.1
|
||||||
Increase (decrease) in noncurrent liabilities
|
1.6
|
5.2
|
||||||
Net cash provided by (used in) operating activities
|
56.3
|
72.2
|
||||||
Cash flow from investing activities:
|
||||||||
Capital expenditures
|
(66.3
|
)
|
(54.2
|
)
|
||||
(Increase) decrease in investments in and advances (to) from affiliates and joint ventures
|
(4.8
|
)
|
0.2
|
|||||
Proceeds from sale of land and depreciable assets
|
4.2
|
1.5
|
||||||
Acquisition of business, net of cash acquired
|
(1.8
|
)
|
-
|
|||||
Other
|
1.9
|
1.9
|
||||||
Net cash (used in) investing activities
|
(66.8
|
)
|
(50.6
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Net change in outstanding debt
|
22.2
|
(16.8
|
)
|
|||||
Net proceeds from stock compensation activity
|
6.5
|
4.8
|
||||||
Dividends paid
|
(19.4
|
)
|
(17.2
|
)
|
||||
Excess tax benefits from stock-based compensation
|
0.2
|
0.2
|
||||||
Contribution from noncontrolling partner
|
0.1
|
0.1
|
||||||
|
||||||||
Net cash provided by (used in) financing activities
|
9.6
|
(28.9
|
)
|
|||||
Effect of foreign currency rate changes on cash
|
(1.0
|
)
|
0.9
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(1.9
|
)
|
(6.4
|
)
|
||||
Cash and cash equivalents at beginning of period
|
40.0
|
24.1
|
||||||
Cash and cash equivalents at end of period
|
$
|
38.1
|
$
|
17.7
|
Note 1: | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
|
2013
|
2012
|
||||||
Performance materials
|
48
|
%
|
50
|
%
|
||||
Construction technologies
|
21
|
%
|
24
|
%
|
||||
Energy services
|
30
|
%
|
25
|
%
|
||||
Transportation
|
5
|
%
|
5
|
%
|
||||
Intersegment sales
|
-4
|
%
|
-4
|
%
|
||||
|
100
|
%
|
100
|
%
|
Note 2: | EARNINGS (LOSS) PER SHARE |
|
Nine Months Ended
|
Three Months Ended
|
||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Weighted average number of common shares outstanding
|
32,438,002
|
32,024,603
|
32,516,744
|
32,071,202
|
||||||||||||
Dilutive impact of stock based compensation
|
303,327
|
315,636
|
-
|
381,676
|
||||||||||||
Weighted average number of common and common equivalent shares outstanding for the period
|
32,741,329
|
32,340,239
|
32,516,744
|
32,452,878
|
||||||||||||
Number of common shares outstanding at the end of the period
|
32,439,479
|
31,959,139
|
32,439,479
|
31,959,139
|
||||||||||||
Weighted average number of anti-dilutive shares excluded from
the computation of diluted earnings per share
|
268,437
|
635,738
|
493,773
|
276,753
|
Note 3: | ADDITIONAL BALANCE SHEET INFORMATION |
|
September 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
Crude stockpile inventories
|
$
|
49.3
|
$
|
60.8
|
||||
In-process and finished goods inventories
|
80.6
|
70.5
|
||||||
Other raw material, container, and supplies inventories
|
24.5
|
22.5
|
||||||
|
$
|
154.4
|
$
|
153.8
|
|
Nine Months Ended
|
|||||||
|
September 30,
|
|||||||
|
2013
|
2012
|
||||||
Balance at beginning of period
|
$
|
9.5
|
$
|
9.3
|
||||
Settlement of obligations
|
(2.3
|
)
|
(3.1
|
)
|
||||
Liabilities incurred and accretion expense
|
1.8
|
3.8
|
||||||
Foreign currency
|
(0.6
|
)
|
(0.1
|
)
|
||||
|
||||||||
Balance at end of period
|
$
|
8.4
|
$
|
9.9
|
Note 4: | BUSINESS SEGMENT INFORMATION |
|
Nine Months Ended
|
Three Months Ended
|
||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net sales:
|
||||||||||||||||
Performance materials
|
$
|
362.7
|
$
|
362.6
|
$
|
126.1
|
$
|
116.7
|
||||||||
Construction technologies
|
161.6
|
173.0
|
62.8
|
60.6
|
||||||||||||
Energy services
|
223.6
|
185.5
|
72.8
|
69.1
|
||||||||||||
Transportation
|
34.4
|
33.5
|
12.7
|
10.7
|
||||||||||||
Intersegment sales
|
(27.1
|
)
|
(22.8
|
)
|
(10.9
|
)
|
(7.9
|
)
|
||||||||
Total
|
$
|
755.2
|
$
|
731.8
|
$
|
263.5
|
$
|
249.2
|
||||||||
|
||||||||||||||||
Operating profit (loss):
|
||||||||||||||||
Performance materials
|
$
|
2.6
|
$
|
61.2
|
$
|
(32.1
|
)
|
$
|
18.4
|
|||||||
Construction technologies
|
10.3
|
14.3
|
9.3
|
7.0
|
||||||||||||
Energy services
|
20.8
|
20.4
|
3.8
|
7.9
|
||||||||||||
Transportation
|
1.0
|
0.7
|
0.5
|
0.2
|
||||||||||||
Corporate
|
(18.1
|
)
|
(16.8
|
)
|
(6.1
|
)
|
(5.1
|
)
|
||||||||
Total
|
$
|
16.6
|
$
|
79.8
|
$
|
(24.6
|
)
|
$
|
28.4
|
|
As of Sep. 30, 2013
|
As of Dec. 31, 2012
|
||||||
Assets:
|
||||||||
Performance materials
|
$
|
392.4
|
$
|
454.0
|
||||
Construction technologies
|
172.3
|
157.6
|
||||||
Energy services
|
248.9
|
225.8
|
||||||
Transportation
|
4.2
|
4.0
|
||||||
Corporate
|
93.2
|
69.2
|
||||||
Total
|
$
|
911.0
|
$
|
910.6
|
|
September 30,
|
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Depreciation, depletion and amortization:
|
||||||||||||||||
Performance materials
|
$
|
14.9
|
$
|
14.5
|
$
|
5.2
|
$
|
5.0
|
||||||||
Construction technologies
|
4.0
|
4.0
|
1.3
|
1.3
|
||||||||||||
Energy services
|
16.1
|
12.6
|
6.0
|
4.4
|
||||||||||||
Transportation
|
0.1
|
0.1
|
-
|
0.1
|
||||||||||||
Corporate
|
2.6
|
2.1
|
0.9
|
0.7
|
||||||||||||
Total
|
$
|
37.7
|
$
|
33.3
|
$
|
13.4
|
$
|
11.5
|
||||||||
|
||||||||||||||||
Capital expenditures:
|
||||||||||||||||
Performance materials
|
$
|
18.9
|
$
|
20.7
|
$
|
8.4
|
$
|
9.9
|
||||||||
Construction technologies
|
2.1
|
7.9
|
1.5
|
1.6
|
||||||||||||
Energy services
|
35.4
|
20.8
|
8.3
|
7.8
|
||||||||||||
Transportation
|
0.2
|
-
|
0.1
|
-
|
||||||||||||
Corporate
|
9.7
|
4.8
|
3.9
|
2.7
|
||||||||||||
Total
|
$
|
66.3
|
$
|
54.2
|
$
|
22.2
|
$
|
22.0
|
||||||||
|
||||||||||||||||
Research and development (income) expense:
|
||||||||||||||||
Performance materials
|
$
|
4.3
|
$
|
3.9
|
$
|
1.5
|
$
|
1.2
|
||||||||
Construction technologies
|
2.1
|
1.8
|
0.7
|
0.6
|
||||||||||||
Energy services
|
1.6
|
1.2
|
0.6
|
0.4
|
||||||||||||
Corporate
|
-
|
(0.1
|
)
|
-
|
-
|
|||||||||||
Total
|
$
|
8.0
|
$
|
6.8
|
$
|
2.8
|
$
|
2.2
|
Note 5: | EMPLOYEE BENEFIT PLANS |
|
Defined Benefit Pension Plan
|
Supplementary Pension Plan
|
||||||||||||||
|
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Service cost
|
$
|
1.3
|
$
|
1.3
|
$
|
0.3
|
$
|
0.2
|
||||||||
Interest cost
|
2.0
|
2.0
|
0.4
|
0.4
|
||||||||||||
Expected return on plan assets
|
(2.2
|
)
|
(1.9
|
)
|
-
|
-
|
||||||||||
Amortization of acturial loss
|
0.7
|
0.7
|
0.2
|
0.1
|
||||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$
|
1.8
|
$
|
2.1
|
$
|
0.9
|
$
|
0.7
|
|
Defined Benefit Pension Plan
|
Supplementary Pension Plan
|
||||||||||||||
|
Three Months Ended
September 30,
|
Three Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Service cost
|
$
|
0.4
|
$
|
0.4
|
$
|
0.1
|
$
|
-
|
||||||||
Interest cost
|
0.7
|
0.7
|
0.1
|
0.2
|
||||||||||||
Expected return on plan assets
|
(0.7
|
)
|
(0.6
|
)
|
-
|
-
|
||||||||||
Amortization of acturial loss
|
0.2
|
0.2
|
0.1
|
-
|
||||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$
|
0.6
|
$
|
0.7
|
$
|
0.3
|
$
|
0.2
|
Note 6: | INCOME TAXES |
Note 7: | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Fair Value as of
|
|||||||||
Liability Derivatives
|
Balance Sheet Location
|
September 30, 2013
|
December 31, 2012
|
||||||
|
|
||||||||
Derivatives designated as hedging instruments:
|
|
||||||||
|
|
||||||||
Interest rate swaps
|
Other long-term liabilities
|
$
|
(5.9
|
)
|
$
|
(8.4
|
)
|
||
|
|
||||||||
Interest rate swaps
|
Accrued liabilities
|
(0.5
|
)
|
-
|
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives
|
||||||||||||||||
(Effective Portion)
|
||||||||||||||||
Nine Months Ended
September 30,
|
Three Months Ended
September 30,
|
|||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
2020
|
|||||||||||||||
Interest rate swaps, net of tax
|
$
|
1.4
|
$
|
-
|
$
|
0.2
|
$
|
-
|
Amount of Gain or (Loss) Recognized in Income on
Derivatives
|
|||||||||||||||||
Nine Months Ended
September 30,
|
Three Months Ended
September 30,
|
||||||||||||||||
Derivatives Not Designated as Hedging Instruments
|
Location of Gain or (Loss) Recognized in Income on Derivatives
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
Foreign currency exchange contracts
|
Other, net
|
$
|
(2.8
|
)
|
$
|
-
|
$
|
(1.9
|
)
|
$
|
(0.3
|
)
|
Note 8: | FAIR VALUE MEASUREMENTS |
|
Fair Value Measurements Using
|
|||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|||||||||||||
Description
|
Asset / (Liability) Balance at
|
|||||||||||||||
|
9/30/2013
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
|
||||||||||||||||
Interest rate swaps
|
$
|
(6.4
|
)
|
$
|
-
|
$
|
(6.4
|
)
|
$
|
-
|
||||||
|
||||||||||||||||
Available-for-sale securities
|
9.1
|
9.1
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
10.9
|
-
|
10.9
|
-
|
||||||||||||
|
||||||||||||||||
Supplementary pension plan assets
|
8.9
|
-
|
8.9
|
-
|
|
Fair Value Measurements Using
|
|||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|||||||||||||
Description
|
Asset / (Liability) Balance at
|
|||||||||||||||
|
12/31/2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
|
||||||||||||||||
Interest rate swaps
|
$
|
(8.4
|
)
|
$
|
-
|
$
|
(8.4
|
)
|
$
|
-
|
||||||
|
||||||||||||||||
Available-for-sale securities
|
14.6
|
14.6
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
9.4
|
-
|
9.4
|
-
|
||||||||||||
|
||||||||||||||||
Supplementary pension plan assets
|
8.2
|
-
|
8.2
|
-
|
Note 9: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
Net-Of-Tax Amount
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
Net-Of-Tax Amount
|
||||||||||||||||||
|
||||||||||||||||||||||||
Foreign currency translation adjustment
|
$
|
(19.4
|
)
|
$
|
-
|
$
|
(19.4
|
)
|
$
|
4.3
|
$
|
-
|
$
|
4.3
|
||||||||||
|
||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities
|
(5.5
|
)
|
1.2
|
(4.3
|
)
|
4.1
|
-
|
4.1
|
||||||||||||||||
|
||||||||||||||||||||||||
Interest rate swap agreements:
|
||||||||||||||||||||||||
Unrealized gain (loss) arising during period
|
0.5
|
(0.2
|
)
|
0.3
|
(1.8
|
)
|
0.7
|
(1.1
|
)
|
|||||||||||||||
Reclassification of net (gain) loss to net income
|
1.8
|
(0.7
|
)
|
1.1
|
1.8
|
(0.7
|
)
|
1.1
|
||||||||||||||||
|
||||||||||||||||||||||||
Pension plans:
|
||||||||||||||||||||||||
Reclassification of net acturial loss to net income
|
0.9
|
(0.3
|
)
|
0.6
|
0.9
|
(0.3
|
)
|
0.6
|
||||||||||||||||
|
||||||||||||||||||||||||
Total other comprehensive income (loss)
|
$
|
(21.7
|
)
|
$
|
-
|
$
|
(21.7
|
)
|
$
|
9.3
|
$
|
(0.3
|
)
|
$
|
9.0
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
Net-Of-Tax Amount
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
Net-Of-Tax Amount
|
||||||||||||||||||
|
||||||||||||||||||||||||
Foreign currency translation adjustment
|
$
|
1.3
|
$
|
-
|
$
|
1.3
|
$
|
7.8
|
$
|
-
|
$
|
7.8
|
||||||||||||
|
||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities
|
(1.6
|
)
|
-
|
(1.6
|
)
|
4.9
|
-
|
4.9
|
||||||||||||||||
|
||||||||||||||||||||||||
Interest rate swap agreements:
|
||||||||||||||||||||||||
Unrealized gain (loss) arising during period
|
(0.3
|
)
|
0.1
|
(0.2
|
)
|
(0.6
|
)
|
0.3
|
(0.3
|
)
|
||||||||||||||
Reclassification of net (gain) loss to net income
|
0.6
|
(0.2
|
)
|
0.4
|
0.6
|
(0.3
|
)
|
0.3
|
||||||||||||||||
|
||||||||||||||||||||||||
Pension plans:
|
||||||||||||||||||||||||
Reclassification of net acturial loss to net income
|
0.3
|
(0.1
|
)
|
0.2
|
0.3
|
(0.1
|
)
|
0.2
|
||||||||||||||||
|
||||||||||||||||||||||||
Total other comprehensive income (loss)
|
$
|
0.3
|
$
|
(0.2
|
)
|
$
|
0.1
|
$
|
13.0
|
$
|
(0.1
|
)
|
$
|
12.9
|
Amounts Reclassified Out of
Accumulated Other Comprehensive
Income (Loss)
|
|||||||||||||||||
Nine Months Ended
September 30,
|
Three Months Ended
September 30,
|
Affected Line Item in the Statement Where Net Income (Loss) is Presented
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
|
||||||||||||
Reclassification of net (gain) loss on interest rate swaps:
|
|
||||||||||||||||
Pre-tax amount
|
$
|
1.8
|
$
|
1.8
|
$
|
0.6
|
$
|
0.6
|
Interest expense, net
|
||||||||
Tax
|
(0.7
|
)
|
(0.7
|
)
|
(0.2
|
)
|
(0.3
|
)
|
Income tax expense
|
||||||||
Net of tax
|
1.1
|
1.1
|
0.4
|
0.3
|
|
||||||||||||
|
|
||||||||||||||||
Amortization of pension items:
|
|
||||||||||||||||
Net acturial loss, pre-tax amount
|
0.9
|
0.9
|
0.3
|
0.3
|
Components of net periodic benefit cost
(see Employee Benefit Plans note for details)
|
||||||||||||
Tax
|
(0.3
|
)
|
(0.3
|
)
|
(0.1
|
)
|
(0.1
|
)
|
Income tax expense
|
||||||||
Net of tax
|
0.6
|
0.6
|
0.2
|
0.2
|
|
||||||||||||
|
|
||||||||||||||||
Total reclassifications for the period, net of tax
|
$
|
1.7
|
$
|
1.7
|
$
|
0.6
|
$
|
0.5
|
|
Note 10: | REORGANIZATION CHARGES |
Nine Months Ended September 30, 2013
|
Performance Materials
|
Construction Technologies
|
||||||
|
||||||||
|
||||||||
Cost of sales line:
|
||||||||
Employee termination and other benefits
|
$
|
0.1
|
$
|
0.7
|
||||
|
||||||||
Selling, general and administrative expenses line:
|
||||||||
Employee termination and other benefits
|
0.6
|
2.5
|
||||||
Non-cash impairment charges (1)
|
-
|
0.6
|
||||||
|
||||||||
Total
|
$
|
0.7
|
$
|
3.8
|
Three Months Ended September 30, 2013
|
Performance Materials
|
Construction Technologies
|
||||||
|
||||||||
|
||||||||
Cost of sales line:
|
||||||||
Employee termination and other benefits
|
$
|
0.1
|
$
|
-
|
||||
|
||||||||
Selling, general and administrative expenses line:
|
||||||||
Employee termination and other benefits
|
-
|
(0.1
|
)
|
|||||
|
||||||||
Total
|
$
|
0.1
|
$
|
(0.1
|
)
|
Note 11: | IMPAIRMENTS |
Note 12: | DISCONTINUED OPERATIONS |
HBS
|
Nine Months Ended September 30,
|
Three Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net Sales
|
$
|
11.4
|
$
|
14.7
|
$
|
3.7
|
$
|
4.3
|
||||||||
|
||||||||||||||||
Pre-tax income (loss)
|
(5.3
|
)
|
0.8
|
(6.1
|
)
|
(0.4
|
)
|
Note 13: | CONTINGENCIES |
· | Organic growth: The central component of our growth strategy is expansion of our product lines and market presence. We have a history of commitment to research and development activities directed at bringing innovative products to market. We believe this approach to growth offers the best probability of achieving our long-term goals at the lowest risk. |
· | Globalization: As we have done for decades, we continue to expand our manufacturing and marketing organizations into emerging geographic markets. We see significant opportunities in emerging markets and international markets in general to expand our revenues and earnings over the long-term given the expected growth rates in these areas. We expect to take advantage of these growing markets, either through our wholly-owned subsidiaries or investments in affiliates and joint ventures. |
· | Mineral development: Bentonite is a component in a majority of the products we supply. Since it is a natural material, we must continually expand our reserve base to maintain a long-term business. Our goal is to add new reserves to replace the bentonite mined each year. Furthermore, we need to assure that new reserves meet the physical property requirements for our diverse product lines and are economical to mine. Our organization is committed to developing its global reserve base to meet these requirements. |
· | Acquisitions: We continually seek to acquire complementary businesses, as appropriate, when we believe those businesses are fairly valued and fit into our growth strategy. |
Three Months Ended September 30,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Consolidated
|
As Reported
|
Less South Africa Impairment Charge
|
Pro Forma
|
As Reported
|
||||||||||||
|
(In Millions, Except Per Share Amounts)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
263.5
|
$
|
263.5
|
$
|
249.2
|
||||||||||
Cost of sales
|
246.1
|
52.2
|
193.9
|
180.5
|
||||||||||||
Gross profit (loss)
|
17.4
|
(52.2
|
)
|
69.6
|
68.7
|
|||||||||||
margin %
|
6.6
|
%
|
26.4
|
%
|
27.6
|
%
|
||||||||||
Selling, general, and administrative expenses
|
42.0
|
0.1
|
41.9
|
40.3
|
||||||||||||
Operating profit (loss)
|
(24.6
|
)
|
(52.3
|
)
|
27.7
|
28.4
|
||||||||||
margin %
|
-9.3
|
%
|
10.5
|
%
|
11.4
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Consolidated
|
As Reported
|
Less South Africa Impairment Charge
|
Pro Forma
|
As Reported
|
||||||||||||
|
(In Millions, Except Per Share Amounts)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
755.2
|
$
|
755.2
|
$
|
731.8
|
||||||||||
Cost of sales
|
605.0
|
52.2
|
552.8
|
527.1
|
||||||||||||
Gross profit (loss)
|
150.2
|
(52.2
|
)
|
202.4
|
204.7
|
|||||||||||
margin %
|
19.9
|
%
|
26.8
|
%
|
28.0
|
%
|
||||||||||
Selling, general, and administrative expenses
|
133.6
|
0.1
|
133.5
|
124.9
|
||||||||||||
Operating profit (loss)
|
16.6
|
(52.3
|
)
|
68.9
|
79.8
|
|||||||||||
margin %
|
2.2
|
%
|
9.1
|
%
|
10.9
|
%
|
Three Months Ended September 30,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Performance Materials
|
As Reported
|
Less South Africa Impairment Charge
|
Pro Forma
|
As Reported
|
||||||||||||
|
(Dollars In Millions)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
126.1
|
$
|
126.1
|
$
|
116.7
|
||||||||||
Cost of sales
|
145.6
|
52.2
|
93.4
|
86.6
|
||||||||||||
Gross profit (loss)
|
(19.5
|
)
|
(52.2
|
)
|
32.7
|
30.1
|
||||||||||
margin %
|
-15.5
|
%
|
25.9
|
%
|
25.8
|
%
|
||||||||||
Selling, general, and administrative expenses
|
12.6
|
0.1
|
12.5
|
11.7
|
||||||||||||
Operating profit (loss)
|
(32.1
|
)
|
(52.3
|
)
|
20.2
|
18.4
|
||||||||||
margin %
|
-25.5
|
%
|
16.0
|
%
|
15.8
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Performance Materials
|
As Reported
|
Less South Africa Impairment Charge
|
Pro Forma
|
As Reported
|
||||||||||||
|
(Dollars In Millions)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
362.7
|
$
|
362.7
|
$
|
362.6
|
||||||||||
Cost of sales
|
323.0
|
52.2
|
270.8
|
267.0
|
||||||||||||
Gross profit (loss)
|
39.7
|
(52.2
|
)
|
91.9
|
95.6
|
|||||||||||
margin %
|
10.9
|
%
|
25.3
|
%
|
26.4
|
%
|
||||||||||
Selling, general, and administrative expenses
|
37.1
|
0.1
|
37.0
|
34.4
|
||||||||||||
Operating profit (loss)
|
2.6
|
(52.3
|
)
|
54.9
|
61.2
|
|||||||||||
margin %
|
0.7
|
%
|
15.1
|
%
|
16.9
|
%
|
Three Months Ended September 30,
|
||||||||||||||||
Consolidated
|
2013
Actual
|
2013
Pro Forma
|
2012
|
2013 Pro Forma vs. 2012
|
||||||||||||
|
(In Millions, Except Per Share Amounts)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
263.5
|
$
|
263.5
|
$
|
249.2
|
5.7
|
%
|
||||||||
Cost of sales
|
246.1
|
193.9
|
180.5
|
|||||||||||||
Gross profit
|
17.4
|
69.6
|
68.7
|
1.3
|
%
|
|||||||||||
margin %
|
6.6
|
%
|
26.4
|
%
|
27.6
|
%
|
||||||||||
Selling, general and administrative expenses
|
42.0
|
41.9
|
40.3
|
4.0
|
%
|
|||||||||||
Operating profit (loss)
|
(24.6
|
)
|
27.7
|
28.4
|
-2.5
|
%
|
||||||||||
margin %
|
-9.3
|
%
|
10.5
|
%
|
11.4
|
%
|
|
Organic
|
Acquisitions
|
Foreign Exchange
|
Total
|
||||||||||||
Performance materials
|
4.3
|
%
|
0.0
|
%
|
-0.5
|
%
|
3.8
|
%
|
||||||||
Construction technologies
|
0.6
|
%
|
0.0
|
%
|
0.3
|
%
|
0.9
|
%
|
||||||||
Energy services
|
1.5
|
%
|
0.4
|
%
|
-0.4
|
%
|
1.5
|
%
|
||||||||
Transportation & intersegment sales
|
-0.4
|
%
|
0.0
|
%
|
0.0
|
%
|
-0.4
|
%
|
||||||||
Total
|
6.0
|
%
|
0.4
|
%
|
-0.6
|
%
|
5.8
|
%
|
||||||||
% of change
|
103.4
|
%
|
6.9
|
%
|
-10.3
|
%
|
100.0
|
%
|
|
Americas
|
EMEA
|
Asia Pacific
|
Total
|
||||||||||||
Performance materials
|
24.1
|
%
|
12.6
|
%
|
11.2
|
%
|
47.9
|
%
|
||||||||
Construction technologies
|
9.1
|
%
|
11.7
|
%
|
3.0
|
%
|
23.8
|
%
|
||||||||
Energy services
|
24.1
|
%
|
2.1
|
%
|
1.4
|
%
|
27.6
|
%
|
||||||||
Transportation & intersegment sales
|
0.7
|
%
|
0.0
|
%
|
0.0
|
%
|
0.7
|
%
|
||||||||
|
||||||||||||||||
Total - current year's period
|
58.0
|
%
|
26.4
|
%
|
15.6
|
%
|
100.0
|
%
|
||||||||
Total from prior year's comparable period
|
56.7
|
%
|
25.1
|
%
|
18.2
|
%
|
100.0
|
%
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||||
Performance Materials
|
2013
Actual
|
2013
Pro Forma
|
2012
|
2013 Pro Forma vs. 2012
|
||||||||||||||||||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net sales
|
$
|
126.1
|
100.0
|
%
|
$
|
126.1
|
100.0
|
%
|
$
|
116.7
|
100.0
|
%
|
$
|
9.4
|
8.1
|
%
|
||||||||||||||||
Cost of sales
|
145.6
|
115.5
|
%
|
93.4
|
74.1
|
%
|
86.6
|
74.2
|
%
|
|||||||||||||||||||||||
Gross profit (loss)
|
(19.5
|
)
|
-15.5
|
%
|
32.7
|
25.9
|
%
|
30.1
|
25.8
|
%
|
2.6
|
8.6
|
%
|
|||||||||||||||||||
Selling, general and
|
||||||||||||||||||||||||||||||||
administrative expenses
|
12.6
|
10.0
|
%
|
12.5
|
9.9
|
%
|
11.7
|
10.0
|
%
|
0.8
|
6.8
|
%
|
||||||||||||||||||||
Operating profit (loss)
|
(32.1
|
)
|
-25.5
|
%
|
20.2
|
16.0
|
%
|
18.4
|
15.8
|
%
|
1.8
|
9.8
|
%
|
Three Months Ended September 30,
|
||||||||||||
Performance Materials Product Line Sales
|
2013
|
2012
|
% change
|
|||||||||
|
(Dollars in Millions)
|
|||||||||||
|
||||||||||||
Metalcasting
|
$
|
67.2
|
$
|
67.8
|
-0.9
|
%
|
||||||
Specialty materials
|
23.9
|
21.3
|
12.2
|
%
|
||||||||
Basic minerals
|
15.8
|
14.7
|
7.5
|
%
|
||||||||
Pet products
|
15.9
|
12.0
|
32.5
|
%
|
||||||||
Other product lines
|
3.3
|
0.9
|
*
|
|||||||||
|
||||||||||||
Total
|
126.1
|
116.7
|
8.1
|
%
|
||||||||
* Not meaningful
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
Construction Technologies
|
2013
|
2012
|
2013 vs. 2012
|
|||||||||||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Net sales
|
$
|
62.8
|
100.0
|
%
|
$
|
60.6
|
100.0
|
%
|
$
|
2.2
|
3.6
|
%
|
||||||||||||
Cost of sales
|
41.3
|
65.8
|
%
|
40.6
|
67.0
|
%
|
0.7
|
1.7
|
%
|
|||||||||||||||
Gross profit
|
21.5
|
34.2
|
%
|
20.0
|
33.0
|
%
|
1.5
|
7.5
|
%
|
|||||||||||||||
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
12.2
|
19.4
|
%
|
13.0
|
21.4
|
%
|
(0.8
|
)
|
-6.2
|
%
|
||||||||||||||
Operating profit
|
9.3
|
14.8
|
%
|
7.0
|
11.6
|
%
|
2.3
|
32.9
|
%
|
Three Months Ended September 30,
|
||||||||||||
Construction Technologies Product Line Sales
|
2013
|
2012
|
% change
|
|||||||||
|
(Dollars in Millions)
|
|||||||||||
|
||||||||||||
Lining technologies
|
$
|
29.5
|
$
|
25.3
|
16.6
|
%
|
||||||
Building materials
|
19.3
|
20.3
|
-4.9
|
%
|
||||||||
Drilling products
|
12.1
|
9.8
|
23.5
|
%
|
||||||||
Contracting services
|
1.9
|
5.2
|
-63.5
|
%
|
||||||||
|
||||||||||||
Total
|
62.8
|
60.6
|
3.6
|
%
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
Energy Services
|
2013
|
2012 | 2013 vs 2012 | |||||||||||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Net sales
|
$
|
72.8
|
100.0
|
%
|
$
|
69.1
|
100.0
|
%
|
$
|
3.7
|
5.4
|
%
|
||||||||||||
Cost of sales
|
58.8
|
80.8
|
%
|
51.4
|
74.4
|
%
|
||||||||||||||||||
Gross profit
|
14.0
|
19.2
|
%
|
17.7
|
25.6
|
%
|
(3.7
|
)
|
-20.9
|
%
|
||||||||||||||
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
10.2
|
14.0
|
%
|
9.8
|
14.2
|
%
|
0.4
|
4.1
|
%
|
|||||||||||||||
Operating profit
|
3.8
|
5.2
|
%
|
7.9
|
11.4
|
%
|
(4.1
|
)
|
-51.9
|
%
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
Transportation
|
2013
|
2012
|
2013 vs 2012
|
|||||||||||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Net sales
|
$
|
12.7
|
100.0
|
%
|
$
|
10.7
|
100.0
|
%
|
$
|
2.0
|
18.7
|
%
|
||||||||||||
Cost of sales
|
11.3
|
89.0
|
%
|
9.6
|
89.7
|
%
|
||||||||||||||||||
Gross profit
|
1.4
|
11.0
|
%
|
1.1
|
10.3
|
%
|
0.3
|
27.3
|
%
|
|||||||||||||||
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
0.9
|
7.1
|
%
|
0.9
|
8.4
|
%
|
-
|
0.0
|
%
|
|||||||||||||||
Operating profit
|
0.5
|
3.9
|
%
|
0.2
|
1.9
|
%
|
0.3
|
150.0
|
%
|
Three Months Ended September 30,
|
||||||||||||||||
Corporate
|
2013
|
2012
|
2013 vs. 2012
|
|||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||
|
||||||||||||||||
Intersegment sales
|
$
|
(10.9
|
)
|
$
|
(7.9
|
)
|
(3.0
|
)
|
||||||||
Intersegment cost of sales
|
(10.9
|
)
|
(7.7
|
)
|
||||||||||||
Gross profit (loss)
|
-
|
(0.2
|
)
|
0.2
|
||||||||||||
|
||||||||||||||||
Selling, general and administrative expenses
|
6.1
|
4.9
|
1.2
|
24.5
|
%
|
|||||||||||
Operating loss
|
(6.1
|
)
|
(5.1
|
)
|
(1.0
|
)
|
19.6
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||
Consolidated
|
2013
Actual
|
2013
Pro Forma
|
2012
|
2013 Pro Forma vs. 2012
|
||||||||||||
|
(In Millions, Except Per Share Amounts)
|
|||||||||||||||
|
||||||||||||||||
Net sales
|
$
|
755.2
|
$
|
755.2
|
$
|
731.8
|
3.2
|
%
|
||||||||
Cost of sales
|
605.0
|
552.8
|
527.1
|
|||||||||||||
Gross profit
|
150.2
|
202.4
|
204.7
|
-1.1
|
%
|
|||||||||||
margin %
|
19.9
|
%
|
26.8
|
%
|
28.0
|
%
|
||||||||||
|
||||||||||||||||
Selling, general and administrative expenses
|
133.6
|
133.5
|
124.9
|
6.9
|
%
|
|||||||||||
Operating profit
|
16.6
|
68.9
|
79.8
|
-13.7
|
%
|
|||||||||||
margin %
|
2.2
|
%
|
9.1
|
%
|
10.9
|
%
|
|
Organic
|
Acquisitions
|
Foreign Exchange
|
Total
|
||||||||||||
Performance materials
|
0.3
|
%
|
0.0
|
%
|
-0.3
|
%
|
0.0
|
%
|
||||||||
Construction technologies
|
-1.8
|
%
|
0.0
|
%
|
0.2
|
%
|
-1.6
|
%
|
||||||||
Energy services
|
5.4
|
%
|
0.1
|
%
|
-0.3
|
%
|
5.2
|
%
|
||||||||
Transportation & intersegment shipping
|
-0.5
|
%
|
0.0
|
%
|
0.0
|
%
|
-0.5
|
%
|
||||||||
Total
|
3.4
|
%
|
0.1
|
%
|
-0.4
|
%
|
3.1
|
%
|
||||||||
% of growth
|
109.7
|
%
|
3.2
|
%
|
-12.9
|
%
|
100.0
|
%
|
|
Americas
|
EMEA
|
Asia Pacific
|
Total
|
||||||||||||
Performance materials
|
25.5
|
%
|
11.0
|
%
|
11.5
|
%
|
48.0
|
%
|
||||||||
Construction technologies
|
8.7
|
%
|
9.7
|
%
|
3.0
|
%
|
21.4
|
%
|
||||||||
Energy services
|
25.4
|
%
|
1.7
|
%
|
2.5
|
%
|
29.6
|
%
|
||||||||
Transportation & intersegment sales
|
1.0
|
%
|
0.0
|
%
|
0.0
|
%
|
1.0
|
%
|
||||||||
|
||||||||||||||||
Total - current year's period
|
60.6
|
%
|
22.4
|
%
|
17.0
|
%
|
100.0
|
%
|
||||||||
Total from prior year's comparable period
|
61.0
|
%
|
22.5
|
%
|
16.5
|
%
|
100.0
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||
Performance Materials
|
2013
Actual
|
2013
Pro Forma
|
2012
|
2013 Pro Forma vs. 2012
|
||||||||||||||||||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net sales
|
$
|
362.7
|
100.0
|
%
|
$
|
362.7
|
100.0
|
%
|
$
|
362.6
|
100.0
|
%
|
$
|
0.1
|
0.0
|
%
|
||||||||||||||||
Cost of sales
|
323.0
|
89.1
|
%
|
270.8
|
74.7
|
%
|
267.0
|
73.6
|
%
|
|||||||||||||||||||||||
Gross profit
|
39.7
|
10.9
|
%
|
91.9
|
25.3
|
%
|
95.6
|
26.4
|
%
|
(3.7
|
)
|
-3.9
|
%
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Selling, general and administrative expenses
|
37.1
|
10.2
|
%
|
37.0
|
10.2
|
%
|
34.4
|
9.5
|
%
|
2.6
|
7.6
|
%
|
||||||||||||||||||||
Operating profit
|
2.6
|
0.7
|
%
|
54.9
|
15.1
|
%
|
61.2
|
16.9
|
%
|
(6.3
|
)
|
-10.3
|
%
|
Nine Months Ended September 30,
|
||||||||||||
Performance Materials Product Line Sales
|
2013
|
2012
|
% change
|
|||||||||
|
(Dollars in Millions)
|
|||||||||||
|
||||||||||||
Metalcasting
|
$
|
200.4
|
$
|
201.6
|
-0.6
|
%
|
||||||
Specialty materials
|
64.8
|
70.0
|
-7.4
|
%
|
||||||||
Basic minerals
|
45.9
|
48.0
|
-4.4
|
%
|
||||||||
Pet products
|
43.8
|
40.0
|
9.5
|
%
|
||||||||
Other product lines
|
7.8
|
3.0
|
*
|
|||||||||
|
||||||||||||
Total
|
362.7
|
362.6
|
0.0
|
%
|
||||||||
* Not meaningful
|
Nine Months Ended September 30,
|
||||||||||||
Construction Technologies Product Line Sales
|
2013
|
2012
|
% change
|
|||||||||
|
(Dollars in Millions)
|
|||||||||||
|
||||||||||||
Lining technologies
|
$
|
67.4
|
$
|
72.0
|
-6.4
|
%
|
||||||
Building materials
|
56.1
|
58.2
|
-3.6
|
%
|
||||||||
Drilling products
|
31.5
|
29.0
|
8.6
|
%
|
||||||||
Contracting services
|
6.6
|
13.8
|
-52.2
|
%
|
||||||||
|
||||||||||||
Total
|
161.6
|
173.0
|
-6.6
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
Energy Services
|
2013
|
2012
|
2013 vs 2012 | |||||||||||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Net sales
|
$
|
223.6
|
100.0
|
%
|
$
|
185.5
|
100.0
|
%
|
$
|
38.1
|
20.5
|
%
|
||||||||||||
Cost of sales
|
169.4
|
75.8
|
%
|
133.2
|
71.8
|
%
|
||||||||||||||||||
Gross profit
|
54.2
|
24.2
|
%
|
52.3
|
28.2
|
%
|
1.9
|
3.6
|
%
|
|||||||||||||||
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
33.4
|
14.9
|
%
|
31.9
|
17.2
|
%
|
1.5
|
4.7
|
%
|
|||||||||||||||
Operating profit
|
20.8
|
9.3
|
%
|
20.4
|
11.0
|
%
|
0.4
|
2.0
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
Transportation
|
2013
|
2012
|
2013 vs 2012
|
|||||||||||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Net sales
|
$
|
34.4
|
100.0
|
%
|
$
|
33.5
|
100.0
|
%
|
$
|
0.9
|
2.7
|
%
|
||||||||||||
Cost of sales
|
30.7
|
89.2
|
%
|
30.0
|
89.6
|
%
|
||||||||||||||||||
Gross profit
|
3.7
|
10.8
|
%
|
3.5
|
10.4
|
%
|
0.2
|
5.7
|
%
|
|||||||||||||||
|
||||||||||||||||||||||||
Selling, general and administrative expenses
|
2.7
|
7.9
|
%
|
2.8
|
8.3
|
%
|
(0.1
|
)
|
-3.6
|
%
|
||||||||||||||
Operating profit
|
1.0
|
2.9
|
%
|
0.7
|
2.1
|
%
|
0.3
|
42.9
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||
Corporate
|
2013
|
2012
|
2013 vs. 2012
|
|||||||||||||
|
(Dollars in Millions)
|
|||||||||||||||
|
||||||||||||||||
Intersegment sales
|
$
|
(27.1
|
)
|
$
|
(22.8
|
)
|
(4.3
|
)
|
||||||||
Intersegment cost of sales
|
(27.2
|
)
|
(22.7
|
)
|
||||||||||||
Gross profit (loss)
|
0.1
|
(0.1
|
)
|
0.2
|
||||||||||||
|
||||||||||||||||
Selling, general and administrative expenses
|
18.2
|
16.7
|
1.5
|
9.0
|
%
|
|||||||||||
Operating loss
|
(18.1
|
)
|
(16.8
|
)
|
(1.3
|
)
|
7.7
|
%
|
As of
|
||||||||
Financial Position
($ in millions)
|
September 30,
2013 |
December 31,
2012 |
||||||
Non-cash working capital
|
$
|
318.0
|
$
|
275.0
|
||||
Goodwill & intangible assets
|
97.5
|
104.1
|
||||||
Total assets
|
911.0
|
910.6
|
||||||
|
||||||||
Long-term debt
|
270.9
|
248.8
|
||||||
Other long-term obligations
|
68.5
|
69.4
|
||||||
Total equity
|
434.8
|
465.1
|
Nine Months Ended
|
||||||||
Cash Flows
|
September 30,
|
|||||||
($ in millions)
|
2013
|
2012
|
||||||
Net cash provided by operating activities
|
$
|
56.3
|
$
|
72.2
|
||||
Net cash used in investing activities
|
(66.8
|
)
|
(50.6
|
)
|
||||
Net cash provided by (used in) financing activities
|
9.6
|
(28.9
|
)
|
10.1
|
First Amendment to Credit Agreement dated as of October 22, 2013 by and among AMCOL International Corporation, certain wholly-owned AMCOL subsidiaries, BMO Harris Bank N.A., as administrative agent, and certain other financial institutions as lenders therein (1)
|
31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
32
|
Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350
|
95.1
|
Mine Safety Disclosures
|
101
|
The following information from our Quarterly Report on Form 10-Q for the period ended September 30, 2013, formatted in XBRL (eXtensible Business Reporting Language):
|
|
(i)
|
Condensed Consolidated Balance Sheets at September 30, 2013, and December 31, 2012,
|
(ii) |
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012,
|
|
(iii) |
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2013 ,
|
|
(iv) |
Condensed Consolidated Statements of Changes in Equity for nine months ended September 30, 2013 and 2012,
|
|
(v) |
Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2013 and 2012, and
|
|
(vi) |
Notes to Condensed Consolidated Financial Statements.
|
(1)
|
Exhibit is incorporated by reference to the Company’s Form 8-K filed on October 25, 2013.
|
|
|
AMCOL INTERNATIONAL CORPORATION
|
|
|
|
|
|
Date:
|
November 8, 2013
|
|
/s/ Ryan F. McKendrick
|
|
|
|
Ryan F. McKendrick
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Date:
|
November 8, 2013
|
|
/s/ Donald W. Pearson
|
|
|
|
Donald W. Pearson
|
|
|
|
Senior Vice President and Chief Financial Officer
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350
|
|
Mine Safety Disclosures
|
|
101
|
The following information from our Quarterly Report on Form 10-Q for the period ended September 30, 2013, formatted in XBRL (eXtensible Business Reporting Language):
|
|
(i)
|
Condensed Consolidated Balance Sheets at September 30, 2013, and December 31, 2012,
|
(ii) |
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012,
|
|
(iii) |
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2013 and 2012,
|
|
(iv) |
Condensed Consolidated Statements of Changes in Equity for nine months ended September 30, 2013 and 2012,
|
|
(v) |
Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2013 and 2012, and
|
|
(vi) |
Notes to Condensed Consolidated Financial Statements.
|
1. | I have reviewed this quarterly report on Form 10-Q of AMCOL International Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 8, 2013
|
/s/ Ryan F. McKendrick
|
|
Ryan F. McKendrick
|
|
President and Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of AMCOL International Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 8, 2013
|
/s/ Donald W. Pearson
|
|
|
|
Donald W. Pearson
|
|
Senior Vice President and Chief Financial Officer
|
Date: November 8, 2013
|
/s/ Ryan F. McKendrick
|
|
|
Ryan F. McKendrick
Chief Executive Officer
|
|
|
|
|
Date: November 8, 2013
|
/s/ Donald W. Pearson
|
|
|
Donald W. Pearson
Chief Financial Officer
|
Mine
|
Section 104 (1)
|
Proposed MSHA Assessments (2)
|
Legal Actions Pending as of Last Day of Period
|
Legal Actions Instituted During Period
|
Legal Actions Resolved During Period
|
|||||||||||||||
Amounts are actual, not thousands
|
||||||||||||||||||||
Gascoyne Mine & Mill
|
-
|
$
|
-
|
1
|
(3)
|
-
|
-
|
|||||||||||||
Belle Fourche Mill
|
-
|
-
|
2
|
(4)
|
-
|
-
|
||||||||||||||
Lovell Mill
|
-
|
263
|
1
|
(5)
|
-
|
1
|
||||||||||||||
Colony West Mill
|
-
|
-
|
3
|
(6)
|
1
|
-
|
||||||||||||||
Colony East Mill
|
-
|
-
|
2
|
(7)
|
-
|
1
|
||||||||||||||
Yellowtail Mine
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Belle/Colony Mine
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Sandy Ridge Mill
|
1
|
-
|
-
|
-
|
-
|
1. | Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which AMCOL and its subsidiaries received a citation from MSHA |
2. | Total dollar amount of proposed assessments received from MSHA during the three-month period ended September 30, 2013. |
3. | This number consists of 1 pending legal action related to contests of proposed penalties referenced in Subpart C of the Mine Act. |
4. | This number consists of 2 pending legal action related to contests of proposed penalties referenced in Subpart C of the Mine Act. |
5. | This number consists of 1 pending legal actions related to contests of proposed penalties referenced in Subpart C of the Mine Act. |
6. | This number consists of 3 pending legal actions related to contests of proposed penalties referenced in Subpart C of the Mine Act. |
7. | This number consists of 2 pending legal actions related to contests of proposed penalties referenced in Subpart C of the Mine Act. |
IMPAIRMENTS
|
9 Months Ended |
---|---|
Sep. 30, 2013
|
|
IMPAIRMENTS [Abstract] | |
IMPAIRMENTS | Note 11: IMPAIRMENTS Health nad Beauty Operations: During the third quarter of 2013, we committed to divest our health and beauty (HBS) operations within our performance materials segment and adjusted the carrying value of HBS's net assets held-for-sale to their $12.0 fair value less cost to sell (see Note 12 for further details). The fair value adjustment resulted in impairment charges of $1.8, $1.1, and $1.3; relating to HBS's goodwill, intangible assets, and property, plant and equipment, respectively. As required by ASC Topic 350 - Intangibles - Goodwill and Other, we completed an interim test for goodwill and intangible assets for HBS's operations during the third quarter of 2013. In the first step of the goodwill impairment evaluation, we compared the fair value of HBS based on an observable Level 2 fair value input with its carrying amount, which suggested the goodwill was impaired. In performing the second step of impairment test, we determined that the implied fair value of goodwill was lower than carrying amount, and recorded an impairment loss of $1.8. The $1.1 impairment charge for intangible assets relates to trademarks and developed technology, and was assessed using the relief from royalty rate method (Level 3 fair value input). Critical assumptions used in conducting these tests included applicable market royalty rates and discount rates as well as the future performance of these assets. The $1.3 impairment charge relating to HBS's plant, property and equipment was assessed using cost method adjusted for age and deterioration (Level 3 fair value input). South Africa: During the quarter ended September 30, 2013, our performance materials segment recorded an impairment charge of $52.3 to record a write down of mineral rights ($36.0) and depreciable assets ($16.3) from their carrying value to their estimated fair values. Fair value for mineral rights was assessed using discounted cash flow approach (Level 3 fair value input) and for depreciable assets using a combination of mass appraisal technique and market approach technique (Level 2 fair value input). The impairment charge relates to a significant adverse change in the business climate experienced by our South African chromite operations. Specifically, recently developed overcapacity in the supply of chromite has impacted our pricing and ability to grow market share in the foundry grade market which required us to perform a review of recoverability in the third quarter of 2013. Based on that evaluation, we determined the long-lived assets that produce chromite were not recoverable on a gross cash flow analysis. The impairment charge is recorded within our condensed consolidated statements of operations within cost of sales ($52.2) and selling, general and administrative expense ($0.1). |
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