PR Newswire: news distribution, targeting and monitoring
2014

Dynacast International Inc. Reports Financial Results for the Second Quarter Ended June 30, 2013

Share with Twitter Share with LinkedIn

CHARLOTTE, N.C., Aug. 26, 2013 /PRNewswire/ -- As previously announced, the management of Dynacast International Inc. ("Dynacast") will hold a conference call at 10:30 a.m., Eastern Time, on Monday, August 26, 2013, to review Dynacast's results for the three and six months ended June 30, 2013.

Net sales were $143.1 million for the three months ended June 30, 2013, a $14.8 million, or 11.5%, increase from the corresponding period in the prior year.  Adjusted EBITDA increased by $2.2 million, or 9.5%, to $25.4 million for the three months ended June 30, 2013 compared to the corresponding period in the prior year. Dynacast reported a net income of $0.4 million for the three months ended June 30, 2013, a $0.4 million, or 50.0%, decrease from the corresponding period in the prior year.  Net income for the three months ended June 30, 2013 includes a non-cash charge of $1.7 million attributable to an increase in the fair value of our warrants; there was no equivalent charge in the corresponding period in the prior year.

Net sales were $282.8 million for the six months ended June 30, 2013, a $34.6 million, or 13.9%, increase from the corresponding period in the prior year.  Adjusted EBITDA increased by $8.6 million, or 19.5%, to $52.7 million for the six months ended June 30, 2013 compared to the corresponding period in the prior year. Dynacast reported a net loss of $0.8 million for the six months ended June 30, 2013, a $0.4 million, or 33.3%, decrease from the corresponding period in the prior year.  Net income for the six months ended June 30, 2013 includes a non-cash charge of $4.2 million attributable to an increase in the fair value of our warrants; there was no equivalent charge in the corresponding period in the prior year.

The average value of the U.S. Dollar relative to the currencies of the countries and regions in which we operate had only a minor impact on results for the three and six months ended June 30, 2013.  The overall impact of all currency movements was to increase net sales by $1.2 and $1.9 million for the three and six months ended June 30, 2013, respectively; increase operating income by $0.2 and $0.1 million, respectively; and increase adjusted EBITDA by $0.3 million and $0.2 million, respectively.

Conference Call

The conference call will be held at 10:30 a.m., Eastern Time, on August 26, 2013 and may be accessed by dialing (877) 873-1192 for U.S. callers or (706) 643-1195 for international callers. Please reference conference ID# 28675420.

A telephonic replay of the call will be available after 2.00 p.m., Eastern Time, on August 26, 2013 and continue through September 28, 2013 and can be accessed by dialing (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. Please reference conference ID# 28675420.

About Dynacast International Inc.

Dynacast is a global manufacturer of small, engineered die cast components for thousands of companies in end markets such as automotive safety and electronics, consumer electronics, healthcare, hardware, computers and peripherals among others.  Dynacast has recently announced its entry into the metal injection molding market, expanding our ability to produce precision components using a wide variety of metals, including stainless steel, titanium and copper.

Dynacast produces precision components by combining extensive engineering knowledge with our specialized manufacturing technologies.  We provide cost effective solutions for our customers worldwide by identifying opportunities to redesign or consolidate products and assemblies through die-casting. We have a history of delivering value to our customers through our engineering expertise, efficient operations and Advanced Quality Planning systems.

With Global Headquarters in Charlotte, NC, Dynacast operates 22 manufacturing facilities in 16 countries worldwide. Please visit www.dynacast.com to learn more.

Non-GAAP Measures

Adjusted EBITDA and Segment EBITDA, as used in this news release, are non-GAAP financial measures.

EBITDA is earnings before interest, other income, taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for certain items that we believe hinder comparison of the performance of our business either period-over-period or with other businesses, including non-controlling interests, management fees, restructuring costs, professional fees and transaction costs. Items are excluded from Adjusted EBITDA because they are individually or collectively material items that we do not consider to be representative of the performance of our business during the periods presented. We believe that the presentation of Adjusted EBITDA enhances an investor's understanding of our performance.

Segment EBITDA is calculated by adding back depreciation and amortization expense to segment operating income and subtracting non-controlling interests in EBITDA for each segment. We measure and evaluate our reportable segments based on segment operating income, which is consistent with our chief operating decision maker's assessment of segment performance. Segment EBITDA does not purport to be an alternative to segment operating income.

Adjusted EBITDA and Segment EBITDA are considered non-GAAP measures because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP or are calculated using financial measures that are not calculated in accordance with GAAP. Adjusted EBITDA and Segment EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for an analysis of our results as reported under GAAP. Some of these limitations include, but are not limited to the fact that Adjusted EBITDA and Segment EBITDA:

  • do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
  • do not reflect changes in, or cash requirements for, our working capital needs;
  • do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;
  • do not reflect any cash requirements that would be required for replacement of assets that are being depreciated or amortized; and
  • may exclude items that reflect cash payments that were made, or will in the future be made.

The non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits their usefulness as comparative measures.

For reconciliations of Adjusted EBITDA and Segment EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, see "Reconciliation of Non-GAAP Measures" in the accompanying tables. 

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this news release may constitute "forward looking statements." Forward-looking statements can generally be identified by the use of forward-looking terminology, such as "contemplate," "believe," "estimate," "anticipate," "continue," "expect," "intend," "predict," "project," "potential," "possible," "may," "plan," "should," "would," "goal," "target" or other similar expressions or, in each case, their negative or other variations or comparable  terminology. Forward-looking statements express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, and include all matters that are not historical facts. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance. By their nature, forward-looking statements involve certain risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Actual outcomes or results may differ materially from those made in or suggested by the forward-looking statements. Factors that may cause actual outcomes or results to differ materially from forward-looking statements include those discussed in Part II, Item 1A. Risk Factors in our Form 10-K filed on March 15, 2013 and in any of our subsequent filings with the Securities and Exchange Commission.

 

 

Dynacast International Inc.
Condensed Consolidated Statements of Operations (Unaudited)




















Three Months Ended


Six Months Ended

(in millions of dollars)

 June 30, 2013


 June 30, 2012


June 30, 2013


June 30, 2012














Net sales


$           143.1


$           128.3


$          282.8


$          248.2

Costs of goods sold

(109.2)


(99.6)


(213.9)


(192.4)



Gross margin

33.9


28.7


68.9


55.8

Operating expenses:









Selling, general and administrative expense

(17.3)


(14.2)


(33.8)


(29.1)


Restructuring credit (expense) 

-


0.1


-


(0.5)



Total operating expenses

(17.3)


(14.1)


(33.8)


(29.6)



Operating income 

16.6


14.6


35.1


26.2

Other income (expense)









Interest expense

(11.5)


(12.2)


(24.5)


(25.0)


Other (expense) income 

(1.7)


0.1


(4.2)


0.1



Income before income taxes

3.4


2.5


6.4


1.3

Income tax expense 

(3.0)


(1.7)


(7.2)


(2.5)

Net income (loss)

0.4


0.8


(0.8)


(1.2)

Less: net income attributable to non-controlling interests

-


(0.1)


(0.1)


(0.1)

Less: Series A preferred stock dividends

-


-


-


(0.2)

Net income (loss) attributable to controlling stockholders

$              0.4


$              0.7


$            (0.9)


$            (1.5)

 

 


Dynacast International Inc.
Condensed Consolidated Balance Sheets (Unaudited)











(in millions of dollars)

June 30, 2013


December 31, 2012











Assets




Current assets





Cash and cash equivalents

$           36.2


$                    28.0


Accounts receivable, net

90.3


87.6


Inventory, net

36.0


37.6


Prepaids and other assets

11.2


14.5


Deferred income taxes 

4.3


4.3



Total current assets

178.0


172.0

Property and equipment, net 

130.9


127.5

Intangible assets, net 

249.4


261.9

Goodwill



239.6


242.8

Deferred financing costs, net

17.6


19.7

Deferred income taxes 

4.8


5.3

Other assets

5.0


4.5



Total assets

$          825.3


$                  833.7

Liabilities and Equity 




Current liabilities





Accounts payable

$           54.6


$                    62.1


Income taxes payable

4.1


3.0


Accrued expenses and other liabilities

54.4


49.8


Accrued interest

15.0


15.0


Deferred revenue  

9.8


8.4


Current portion of accrued pension and retirement benefit obligations

0.6


0.6


Current portion of long-term debt

1.9


6.3


Deferred income taxes

0.2


0.2



Total current liabilities

140.6


145.4

Accrued interest and dividends

15.9


11.7

Accrued pension and retirement benefit obligations

23.4


23.5

Long-term debt, net

388.1


386.2

Mandatorily redeemable preferred stock 

53.0


53.0

Warrants 


13.7


9.5

Deferred income taxes

67.1


70.3

Other liabilities

3.2


4.5



Total liabilities

705.0


704.1

Puttable common stock

1.5


1.5

Commitments and contingencies




Equity








Common stock

0.2


0.2


Additional paid-in capital

167.5


167.5


Accumulated foreign currency translation adjustment, net

(22.9)


(14.5)


Unrealized loss on cash flow hedges, net

(0.1)


0.1


Cumulative unrealized pension loss, net

(4.1)


(4.3)


Accumulated deficit

(25.6)


(24.7)



Total equity attributable to controlling stockholders

115.0


124.3

Non-controlling interests

3.8


3.8



Total equity

118.8


128.1



Total liabilities and equity

$          825.3


$                  833.7

 

 

Dynacast International Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)



Six Months Ended

(in millions of dollars)

June 30, 2013


June 30, 2012

Cash flows from operating activities




Net loss 

$             (0.8)


$            (1.2)

Adjustments to reconcile net loss to cash




 provided by operating activities:





Depreciation and amortization

16.9


16.0


Amortization of deferred financing costs

2.6


1.8


Deferred income taxes

(2.0)


(2.7)


Change in fair value of warrants

4.2


-


Beneficial conversion value for Series A preferred stock

-


0.9


Other

0.3


-

Changes in operating assets and liabilities:





Accounts receivable

(3.7)


(10.7)


Inventory

1.0


(5.1)


Prepaids and other assets

0.5


0.2


Accounts payable

(6.9)


8.3


Income taxes payable

2.4


1.1


Accrued expenses

4.6


0.3


Accrued interest and dividends

4.2


4.2


Other 

5.4


3.2



Net cash flows provided by operating activities

28.7


16.3

Cash flows from investing activities




Capital expenditures

(16.8)


(9.2)

Settlement of derivative contracts

-


1.3



Net cash flows used in investing activities

(16.8)


(7.9)

Cash flows from financing activities




Draws on revolver

9.0


14.0

Repayments on revolver

(9.0)


(14.0)

Draw on credit facility

1.4


-

Repayment of credit facility

(1.4)


-

Proceeds from ERP loan

5.6


-

Debt issuance costs

(0.5)


(0.6)

Dividends paid to non-controlling interests

(0.1)


(0.2)

Repayments of long-term debt

(8.1)


(2.5)



Net cash flows used in financing activities

(3.1)


(3.3)

Effect of exchange rate changes on cash and cash equivalents

(0.6)


(0.5)



Net change in cash and cash equivalents

8.2


4.6

Cash and cash equivalents




Beginning of period

28.0


21.1

End of period

$             36.2


$           25.7










 

 

Dynacast International Inc.
Reconciliation of Non-GAAP Measures

 

The following tables reconcile our total net income (loss) to Adjusted EBITDA and our net income (loss) by segment to Segment EBITDA:



For the Three Months Ended



June 30, 2013


June 30, 2012


(In millions of dollars)

Europe

Asia

North

 America

Corporate

Total


Europe

Asia

North

America

Corporate

Total


Sales

$      45.5

$      58.2

$      39.4

$            -

$   143.1


$       43.4

$       51.0

$       33.9

$            -

$    128.3















Net income (loss)

$        6.2

$        7.6

$        0.1

$   (13.5)

$        0.4


$         5.3

$         5.5

$         2.4

$    (12.4)

$         0.8


Income taxes

-

1.5

5.9

(4.4)

3.0


0.5

1.0

3.0

(2.8)

1.7


Interest expense

0.4

0.1

-

11.0

11.5


0.6

0.1

-

11.5

12.2


Other income

(1.0)

(0.1)

-

2.8

1.7


(0.4)

(0.1)

(0.1)

0.5

(0.1)


Operating income (loss)

5.6

9.1

6.0

(4.1)

16.6


6.0

6.5

5.3

(3.2)

14.6


Depreciation & amortization

3.3

3.2

2.0

-

8.5


3.0

3.2

1.8

0.1

8.1


EBITDA

8.9

12.3

8.0

(4.1)

25.1


9.0

9.7

7.1

(3.1)

22.7















Non-controlling interests in EBITDA

(0.1)

(0.2)

-

-

(0.3)


-

(0.2)

-

-

(0.2)


Management fees

-

-

-

0.6

0.6


-

-

-

0.6

0.6


Restructuring & severance

-

-

-

-

-


(0.1)

-

-

-

(0.1)


Transaction & related costs

-

-

-

-

-


-

-

-

0.2

0.2


Adjusted EBITDA

$        8.8

$      12.1

$        8.0

$      (3.5)

$      25.4


$         8.9

$         9.5

$         7.1

$       (2.3)

$       23.2





























For the Six Months Ended



June 30, 2013


June 30, 2012


(In millions of dollars)

Europe

Asia

North

 America

Corporate

Total


Europe

Asia

North

America

Corporate

Total


Sales

$      91.5

$   108.9

$      82.4

$            -

$   282.8


$       89.3

$       92.0

$       66.9

$            -

$    248.2















Net income (loss)

$      10.5

$      13.4

$        2.4

$   (27.1)

$      (0.8)


$         9.7

$         9.0

$         4.5

$    (24.4)

$       (1.2)


Income taxes

2.2

3.0

12.4

(10.4)

7.2


1.8

1.7

5.8

(6.8)

2.5


Interest expense

0.7

0.1

-

23.7

24.5


1.2

0.1

-

23.7

25.0


Other income

(1.9)

(0.1)

-

6.2

4.2


(0.7)

(0.1)

(0.1)

0.8

(0.1)


Operating income (loss)

11.5

16.4

14.8

(7.6)

35.1


12.0

10.7

10.2

(6.7)

26.2


Depreciation & amortization

6.6

6.3

3.9

0.1

16.9


6.1

6.2

3.5

0.2

16.0


EBITDA

18.1

22.7

18.7

(7.5)

52.0


18.1

16.9

13.7

(6.5)

42.2















Non-controlling interests in EBITDA

(0.1)

(0.4)

-

-

(0.5)


-

(0.4)

-

-

(0.4)


Management fees

-

-

-

1.2

1.2


-

-

-

1.2

1.2


Restructuring & severance

-

-

-

-

-


0.5

-

-

-

0.5


Professional fees

-

-

-

-

-


-

-

-

0.3

0.3


Transaction & related costs

-

-

-

-

-


-

-

-

0.3

0.3


Adjusted EBITDA

$      18.0

$      22.3

$      18.7

$      (6.3)

$     52.7


$       18.6

$       16.5

$       13.7

$      (4.7)

$       44.1


 

 

CONTACT:
Richard J. Lehman Jr.
980-297-7354
richardlehman@dynacast.com

SOURCE Dynacast International Inc.



RELATED LINKS
http://www.dynacast.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 
Area to test

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release