OM Group Announces Fourth Quarter 2012 Financial Results

Strong operating cash flow; Debt levels reduced; Significant cost reduction actions underway; 2013 EBITDA levels forecasted

19 Feb, 2013, 08:41 ET from OM Group, Inc.

CLEVELAND, Feb. 19, 2013 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) today announced financial results for the fourth quarter ended December 31, 2012. The Company reported a loss of $(1.06) of diluted earnings per share from continuing operations, which included $(0.38) relating to its Advanced Materials business. On January 21, 2013, the Company announced the sale of this business with an expected close before the end of April. Fourth quarter 2012 results also include accelerated debt repayment charges of $(0.17), a $(0.39) lower-of-cost-or-market charge, $(0.18) resulting from the final impact of inventory step-up charges related to the 2011 acquisition of Vacuumschmelze, and a $0.19 favorable purchase price settlement for the 2010 acquisition of EaglePicher Technologies. Excluding these items, the Company reported adjusted diluted earnings per share from continuing operations of $(0.13).

OM Group also reported $19 million of adjusted EBITDA, excluding the results of Advanced Materials and the LCM charge, and $51 million of cash flow from operations in the fourth quarter of 2012. The Company ended the year with $228 million of cash and $467 million of debt. The Company expects initial cash proceeds of $325 million from the sale of its Advanced Materials business and potential proceeds of up to an additional $110 million based on the business achieving certain revenue targets over three years. The Company is targeting the proceeds from the sale, along with available cash on hand, to repay a substantial portion of its debt and significantly reduce future interest expense.

"Our fourth quarter performance was highlighted by continued strong cash flow performance, enabling us to again accelerate our debt repayment," said Joe Scaminace, Chairman and Chief Executive Officer of OM Group, Inc. "The pending sale of the Advanced Materials business further strengthens our balance sheet, providing us with the capacity and flexibility to execute our plans in spite of challenging business conditions and to support our recently announced share repurchase program."

Fourth quarter 2012 sales of $340 million were 22 percent lower than in the prior year comparable quarter, primarily due to lower prices and volumes in the Advanced Materials business and lower rare-earth pricing effects in the Magnetic Technologies business. The Battery Technologies business achieved higher sales levels than in the fourth quarter of 2011, and Specialty Chemicals sales levels were slightly lower.

"We previously announced a broad range of cost reduction initiatives to improve our financial performance and cost structure," said Mr. Scaminace. "These initiatives are expected to contribute $10-20 million of EBITDA in 2013, and will better position the Company for expanded profitability as macroeconomic conditions improve."

Due to the significant positive change in its profile following the expected sale of its Advanced Materials business, the Company provided a 2013 forecast of $120-140 million of adjusted EBITDA. Results are expected to strengthen in the second half of the year, paced to track anticipated macroeconomic improvements in the Company's primary geographic markets and applications, and benefitting from organic growth initiatives and cost reduction efforts. This forecast excludes Advanced Materials business results and divestiture impacts, related accelerated amortization of deferred financing fees, and restructuring costs associated with cost reduction actions.

Mr. Scaminace concluded, "This is an exciting time at OM Group. We are exiting our commodity business, building a rock-solid balance sheet, improving our cost structure, implementing organic growth programs, and sharpening our focus on synergistic acquisitions. We are well-positioned to execute our strategy and create long-term shareholder value."

Webcast Information

OM Group has scheduled a conference call and live audio broadcast on the Web for 10 AM EST today. Investors may access the live audio broadcast by logging on to http://investor.omgi.com. A copy of management's presentation materials will be available on OMG's website before the call. The company recommends visiting the website at least 15 minutes prior to the webcast to download and install any necessary software. A webcast audio replay will be available on the "Investor Relations - Presentations" page of the company's website three hours after the call.

About OM Group

OM Group is a technology-based industrial growth company serving attractive global markets, including automotive systems, electronic devices, aerospace, general industrial and renewable energy. Its business platforms use innovative technologies and expertise to address customers' complex applications and demanding requirements. For more information, visit the Company's website at www.omgi.com.

Forward-Looking Statements

The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: successful completion of the sale of our Advanced Materials business; successful execution of the GTL supply agreement signed in connection with the Advanced Materials sale; risks arising from uncertainty in worldwide economic conditions; extended business interruption at our facilities; fluctuations in the price and uncertainties in the supply of rare earth materials and other raw materials; our ability to identify, complete and integrate acquisitions aligned with our strategy; restrictive covenants in our Senior Secured Credit Facility which may affect our ability to operate our business successfully; indebtedness may impair our ability to operate our business successfully; changes in effective tax rates or adverse outcomes resulting from examination of our income tax returns; the majority of our operations are outside the United States, which subjects us to risks that may adversely affect our operating results; level of returns on pension plan assets and changes in the actuarial assumptions; the majority of our cash is generated and held outside the United States; the timing and amount of common share repurchases, if any; fluctuations in foreign exchange rates; unanticipated costs or liabilities for compliance with environmental regulation; changes in environmental, health and safety regulatory requirements; technological changes in our industry or in our customers' products; our ability to adequately protect or enforce our intellectual property rights; disruption of our relationship with key customers or any material adverse change in their businesses; and the risk factors set forth in Part 1, Item 1a of our Annual Report on Form 10-K for the year ended December 31, 2011.

OM Group, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

December 31, 2012

December 31, 2011

(In thousands)

ASSETS

Current assets

Cash and cash equivalents

$               227,612

$               292,146

Restricted cash on deposit

22,793

92,813

Accounts receivable, net

174,613

212,152

Inventories

463,093

615,018

Refundable and prepaid income taxes

3,207

42,480

Other current assets

48,258

54,833

Total current assets

939,576

1,309,442

Property, plant and equipment, net

496,755

482,313

Goodwill

543,269

544,471

Intangible assets, net

429,672

433,275

Notes receivable from joint venture partner

16,015

16,015

Other non-current assets

74,140

88,316

Total assets

$            2,499,427

$            2,873,832

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Current portion of long-term debt

$                 13,309

$                 13,265

Accounts payable

128,381

170,466

Liability related to joint venture partner injunction

22,793

92,813

Accrued income taxes

23,913

19,806

Accrued employee costs

41,762

49,699

Deferred income taxes

4,724

23,449

Purchase price of VAC payable to seller

75,351

-

Other current liabilities

69,012

79,026

Total current liabilities

379,245

448,524

Long-term debt

454,054

663,167

Deferred income taxes

121,451

129,945

Pension liabilities

233,823

204,248

Purchase price of VAC payable to seller

11,259

86,513

Other non-current liabilities

55,446

62,032

Stockholders' equity:

Total OM Group, Inc. stockholders' equity

1,206,710

1,234,902

Noncontrolling interests

37,439

44,501

Total equity

1,244,149

1,279,403

Total liabilities and equity

$            2,499,427

$            2,873,832

  

OM Group, Inc. and Subsidiaries

Unaudited Condensed Statements of Consolidated Operations

Three Months Ended December 31

Year Ended December 31

2012

2011

2012

2011

(In thousands, except per share data)

Net sales

$   340,413

$    438,611

$    1,637,791

$    1,514,535

Cost of goods sold

311,069

347,067

1,381,441

1,258,649

Gross profit

29,344

91,544

256,350

255,886

Selling, general and administrative expenses

64,407

75,401

260,519

229,052

Gain on sale of property

-

-

(2,857)

(9,693)

Operating profit (loss)

(35,063)

16,143

(1,312)

36,527

Other income (expense):

Interest expense

(9,781)

(11,941)

(45,798)

(23,268)

Accelerated amortization of deferred financing fees

(5,275)

-

(6,524)

-

Interest income

244

459

774

1,440

Foreign exchange gain (loss)

877

3,300

(1,007)

10,564

Other, net

4,789

2,585

5,418

3,680

(9,146)

(5,597)

(47,137)

(7,584)

Income (loss) from continuing operations before income tax expense

(44,209)

10,546

(48,449)

28,943

Income tax benefit 

4,063

42,293

2,771

17,796

Income (loss) from continuing operations, net of tax

(40,146)

52,839

(45,678)

46,739

Income (loss) from discontinued operations, net of tax

(156)

36

(266)

(59)

Consolidated net income (loss)

(40,302)

52,875

(45,944)

46,680

Net (income) loss attributable to noncontrolling interests

6,303

147

7,063

(4,669)

Net income (loss) attributable to OM Group, Inc. common stockholders

$    (33,999)

$      53,022

$       (38,881)

$         42,011

Earnings per common share — basic:

Income (loss) from continuing operations attributable to OM Group, Inc.

common stockholders

$       (1.06)

$         1.66

$           (1.21)

$            1.35

Loss from discontinued operations attributable to OM Group, Inc.

common stockholders

$       (0.01)

-

(0.01)

-

Net income (loss) attributable to OM Group, Inc. common

stockholders

$       (1.07)

$         1.66

$           (1.22)

$            1.35

Earnings per common share — assuming dilution:

Income (loss) from continuing operations attributable to OM Group, Inc.

common stockholders

$       (1.06)

$         1.66

$           (1.21)

$            1.35

Loss from discontinued operations attributable to OM Group, Inc.

common stockholders

$       (0.01)

-

(0.01)

-

Net income (loss) attributable to OM Group, Inc. common

stockholders

$       (1.07)

$         1.66

$           (1.22)

$            1.35

Weighted average shares outstanding

Basic

31,896

31,856

31,885

31,079

Assuming dilution

31,896

31,989

31,885

31,244

Amounts attributable to OM Group, Inc. common stockholders:

Income (loss) from continuing operations, net of tax

$    (33,843)

$      52,986

$       (38,615)

$         42,070

Income (loss) from discontinued operations, net of tax

(156)

36

(266)

(59)

Net income (loss)

$    (33,999)

$      53,022

$       (38,881)

$         42,011

    

OM Group, Inc. and Subsidiaries

Unaudited Condensed Statements of Consolidated Cash Flows

Three Months Ended December 31

Year Ended December 31

2012

2011

2012

2011

(In thousands)

Operating activities

Consolidated net income (loss)

$       (40,302)

$    52,875

$       (45,944)

$    46,680

Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:

(Income) loss from discontinued operations

156

(36)

266

59

Depreciation and amortization

22,914

23,103

89,276

70,367

Amortization of deferred financing fees

1,267

774

5,405

2,305

Accelerated amortization of deferred financing fees

5,275

-

6,524

-

Share-based compensation expense

398

1,392

5,548

6,510

Foreign exchange (gain) loss

(877)

(3,300)

1,007

(10,564)

Deferred income tax provision (benefit)

(10,634)

(4,245)

(30,573)

(31,567)

VAC lower of cost or market ("LCM") charges (a)

24,648

(47,910)

78,399

14,534

Allowance on GTL prepaid tax asset

(5,645)

-

(5,645)

(6,225)

Gain on sale of property

-

-

(2,857)

(9,693)

Other non-cash items

199

(2,330)

(2,954)

(6,173)

Changes in operating assets and liabilities, excluding the effect of business acquisitions

Accounts receivable

30,888

31,569

37,752

19,391

Inventories (b)

(12,916)

(129)

75,586

(1,702)

Accounts payable

7,069

38,203

(42,406)

24,718

Refundable, prepaid and accrued income taxes

35,196

(45,914)

40,889

(1,345)

Other, net

(6,824)

(5,759)

(1,906)

7,501

Net cash provided by operating activities

50,812

38,293

208,367

124,796

Investing activities

Expenditures for property, plant and equipment

(24,708)

(30,077)

(71,725)

(56,482)

Proceeds from sale of property

-

-

5,138

9,693

Cash (paid) received for acquisitions or purchase price settlements

6,045

(55,493)

6,045

(729,401)

Other, net

-

(2,976)

-

(2,976)

Net cash used for investing activities

(18,663)

(88,546)

(60,542)

(779,166)

Financing activities

Payments on revolving line of credit

-

-

-

(120,000)

Payments of long-term debt

(130,878)

-

(213,532)

-

Proceeds from long-term debt

-

-

-

697,975

Debt issuance costs

-

(893)

-

(30,176)

Payment related to surrendered shares

-

-

(254)

(193)

Proceeds from exercise of stock options

1

-

1

361

Net cash provided by (used for) financing activities

(130,877)

(893)

(213,785)

547,967

Effect of exchange rate changes on cash

987

(3,077)

1,426

(2,048)

Cash and cash equivalents

Decrease in cash and cash equivalents

(97,741)

(54,223)

(64,534)

(108,451)

Balance at the beginning of the period

325,353

346,369

292,146

400,597

Balance at the end of the period

$       227,612

$  292,146

$       227,612

$  292,146

(a)  See footnote to segment table.  Amounts are VAC purchase accounting lower of cost or market ("LCM") plus additional LCM charges.

(b)  See footnote to segment table.  Amounts include VAC inventory purchase accounting step-up amortization.

 

OM Group, Inc. and Subsidiaries

Unaudited Segment Information

Three Months Ended December 31

Year Ended December 31

(In thousands)

2012

2011

2012

2011

Net Sales

Magnetic Technologies(a)

$ 128,657

$ 169,574

$ 631,582

$ 276,147

Advanced Materials

82,158

142,002

447,049

640,879

Specialty Chemicals

98,265

100,068

417,028

470,022

Battery Technologies

31,644

27,317

143,038

128,814

Intersegment items

(311)

(350)

(906)

(1,327)

$ 340,413

$ 438,611

$ 1,637,791

$ 1,514,535

Operating profit (loss)

Magnetic Technologies(a)(b)

$ (21,991)

$ 10,987

$ (22,265)

$ (66,914)

Advanced Materials

(9,266)

11,438

6,427

81,186

Specialty Chemicals(c)(d)

4,696

5,940

37,990

62,251

Battery Technologies

1,943

(442)

19,587

12,125

Corporate(e)

(10,445)

(11,780)

(43,051)

(52,121)

$ (35,063)

$ 16,143

$ (1,312)

$ 36,527

(a) Includes the activity of VAC since the acquisition on August 2, 2011.

(b) Three months and year ended December 31, 2012 include:

 

Q4

Full Year

VAC inventory purchase accounting step-up amortization

$ 1.8

$ 17.9

VAC purchase accounting LCM

6.6

38.0

Total VAC purchase accounting step-up and LCM charges

8.4

55.9

Additional VAC LCM

18.0

40.4

Total VAC purchase accounting step-up amortization and LCM

$ 26.4

$ 96.3

Three months and year ended December 31, 2011:

Q4

Full Year

VAC inventory purchase accounting step-up amortization

$ 61.0

$ 92.1

VAC purchase accounting LCM

(47.9)

14.5

Total VAC purchase accounting step-up and LCM charges

13.1

106.6

Acquisition-related charges

2.2

4.6

Total VAC purchase accounting, LCM, and acquisition related charges

$ 15.3

$ 111.2

 

(c) Year ended December 31, 2012 includes a $2.9 million property sale gain. (d) Year ended December 31, 2011 includes a $9.7 million property sale gain. (e) Includes a $2.5 million settlement charge associated with the lump-sum cash settlement to certain participants in one of our US defined benefit pension plans in the year ended December 31, 2012 and $2.6 million and $15.4 million of acquisition-related fees related to VAC in the three months and year ended December 31, 2011, respectively.

 

OM Group, Inc. and Subsidiaries

Unaudited Non-U.S. GAAP Financial Measures, Adjusted Operating Profit and Adjusted EBITDA

Three Months Ended December 31, 2012

(in thousands)

Magnetic Technologies

Advanced Materials

Specialty Chemicals

Battery Technologies

Corporate

Consolidated

Operating profit (loss) - as reported

$                       (21,991)

$                  (9,266)

$                    4,696

$                      1,943

$  (10,445)

$      (35,063)

VAC inventory purchase accounting step-up and LCM charges

8,377

-

-

-

-

8,377

Adjusted operating profit

(13,614)

(9,266)

4,696

1,943

(10,445)

(26,686)

Depreciation and amortization

10,777

4,174

5,210

2,554

199

22,914

Adjusted EBITDA

$                        (2,837)

$                  (5,092)

$                    9,906

$                      4,497

$  (10,246)

$       (3,772)

Three Months Ended December 31, 2011

(in thousands)

Magnetic Technologies

Advanced Materials

Specialty Chemicals

Battery Technologies

Corporate

Consolidated

Operating profit (loss) - as reported

$                        10,987

$                  11,438

$                    5,940

$                       (442)

$  (11,780)

$       16,143

VAC inventory purchase accounting step-up and LCM charges

13,083

-

-

-

-

13,083

Acquisition-related charges

2,245

-

-

-

2,600

4,845

Adjusted operating profit

26,315

11,438

5,940

(442)

(9,180)

34,071

Depreciation and amortization

9,864

5,239

5,362

2,533

105

23,103

Adjusted EBITDA

$                        36,179

$                  16,677

$                   11,302

$                      2,091

$    (9,075)

$       57,174

Year Ended December 31, 2012

(in thousands)

Magnetic Technologies

Advanced Materials

Specialty Chemicals

Battery Technologies

Corporate

Consolidated

Operating profit (loss) - as reported

$                       (22,265)

$                   6,427

$                   37,990

$                    19,587

$  (43,051)

$       (1,312)

VAC inventory purchase accounting step-up and LCM charges

55,874

-

-

-

-

55,874

Pension settlement expense

-

-

-

-

2,469

2,469

Gain on sale of property

-

-

(2,857)

-

-

(2,857)

Adjusted operating profit

33,609

6,427

35,133

19,587

(40,582)

54,174

Depreciation and amortization

40,832

16,897

20,768

10,091

688

89,276

Adjusted EBITDA

$                        74,441

$                  23,324

$                   55,901

$                    29,678

$  (39,894)

$     143,450

Year Ended December 31, 2011

(in thousands)

Magnetic Technologies(a)

Advanced Materials

Specialty Chemicals

Battery Technologies

Corporate

Consolidated

Operating profit (loss) - as reported

$                       (66,914)

$                  81,186

$                   62,251

$                    12,125

$  (52,121)

$       36,527

VAC inventory purchase accounting step-up and LCM charges

106,600

-

-

-

-

106,600

Acquisition-related charges

4,600

-

-

-

15,400

20,000

Gain on sale of property

-

-

(9,693)

-

-

(9,693)

Adjusted operating profit

44,286

81,186

52,558

12,125

(36,721)

153,434

Depreciation and amortization

17,202

20,687

22,406

9,592

480

70,367

Adjusted EBITDA

$                        61,488

$                101,873

$                   74,964

$                    21,717

$  (36,241)

$     223,801

(a) Includes activity of VAC since the acquisition on August 2, 2011.

In order to assist readers of our financial statements in understanding the operating results that the Company's management uses to evaluate the business, we are providing adjusted operating profit and adjusted EBITDA, both of which are non-U.S. GAAP financial measures. The Company's management believes that these are important metrics in evaluating the performance of the Company's business, providing a baseline for evaluating and comparing our operating results and isolating the impact of certain items on our results.  The table above presents a reconciliation of the Company's U.S. GAAP operating profit - as reported to adjusted operating profit and adjusted EBITDA. The non-U.S. GAAP financial information set forth in the table above should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.

    

OM Group, Inc. and Subsidiaries

Unaudited Non-U.S. GAAP Financial Measures

Three Months Ended

Three Months Ended

December 31, 2012

December 31, 2011

(in thousands, except per share data)

$

Diluted EPS

$

Diluted EPS

Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders - as reported

$  (33,843)

$        (1.06)

$    52,986

$         1.66

VAC inventory purchase accounting step-up and lower of cost or market charges, net of tax

5,791

0.18

9,244

0.29

Acquisition-related charges, net of tax

-

-

4,150

0.13

Accelerated amortization of deferred financing fees, net of tax

5,275

0.17

-

-

EPT escrow settlement, net of tax

(6,045)

(0.19)

-

-

Other discrete tax items, net

-

-

(40,927)

(1.28)

Adjusted income (loss) from continuing operations attributable to OM Group, Inc. common stockholders

$  (28,822)

$        (0.90)

$    25,453

$         0.80

Weighted average shares outstanding - diluted

31,896

31,989

Year Ended

Year Ended

December 31, 2012

December 31, 2011

(in thousands, except per share data)

$

Diluted EPS

$

Diluted EPS

Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders - as reported

$  (38,615)

$        (1.21)

$    42,070

$         1.35

VAC inventory purchase accounting step-up and lower of cost or market charges, net of tax

38,623

1.21

75,425

2.41

Acquisition-related charges, net of tax

-

-

18,195

0.58

Pension settlement expense, net of tax

2,469

0.08

-

-

Gain on sale of property, net of tax

(2,857)

(0.09)

(8,568)

(0.27)

Accelerated amortization of deferred financing fees, net of tax

6,524

0.20

-

-

EPT escrow settlement, net of tax

(6,045)

(0.19)

-

-

Adjustment of GTL's prepaid tax allowance (OMG's 55% share)

-

-

(3,424)

(0.11)

Other discrete tax items, net 

-

-

1,327

0.04

Adjusted income from continuing operations attributable to OM Group, Inc. common stockholders

$         99

$            -

$  125,025

$         4.00

Weighted average shares outstanding - diluted

32,011

31,244

In order to assist readers of our financial statements in understanding the operating results that the Company's management uses to evaluate the business, we are providing adjusted income from continuing operations attributable to OM Group, Inc. common stockholders and adjusted earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution, both of which are non-U.S. GAAP financial measures. The Company's management believes that these are important metrics in evaluating the performance of the Company's business, providing a baseline for evaluating and comparing our operating results and isolating the impact of certain items on our results. The table above presents a reconciliation of the Company's U.S. GAAP income from continuing operations attributable to OM Group, Inc. common stockholders - as reported to adjusted income from continuing operations attributable to OM Group, Inc. common stockholders and earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution - as reported to adjusted earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution. The non-U.S. GAAP financial information set forth in the table above should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.

 

OM Group, Inc. and Subsidiaries

Unaudited Non-U.S. GAAP Financial Measures, Pro Forma Adjusted EBITDA

Three Months Ended December 31, 2012

(in thousands)

EBITDA (a)

Operating profit (loss) - as reported

$           (35,063)

Non-GAAP items:

VAC inventory purchase accounting step-up and LCM charges

8,377

Adjusted operating profit (loss)

(26,686)

Depreciation and amortization

22,914

Adjusted EBITDA

(3,772)

Exclude:

Advanced Materials loss

5,092

VAC LCM charge (non-purchase accounting related)

18,011

Pro forma adjusted EBITDA

$            19,331

(a) EBITDA is defined as adjusted operating profit plus depreciation and amortization.  For purposes of this definition, amortization excludes amortization of deferred financing fees, which is recorded in interest expense below the Operating profit line. 

Unaudited Non-U.S. GAAP Financial Measures, Pro Forma Adjusted EPS

Three Months Ended December 31, 2012

Diluted EPS

Diluted EPS - as reported

$               (1.06)

Non-GAAP items:

VAC inventory purchase accounting step-up and LCM charges

0.18

Accelerated amortization of deferred financing fees (b)

0.17

EPT escrow settlement (b)

(0.19)

Adjusted diluted EPS

$               (0.90)

Exclude:

Advanced Materials loss

0.38

VAC LCM charge (non-purchase accounting related)

0.39

Pro forma adjusted diluted EPS

$               (0.13)

(b)  Items are below Operating profit. No impact on EBITDA. 

In order to assist readers of our financial statements in understanding the operating results that the Company's management uses to evaluate the business, we are providing adjusted EBITDA and adjusted earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution, both of which are non-U.S. GAAP financial measures. The table above presents a reconciliation of the Company's U.S. GAAP EBITDA and  earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution - as reported to adjusted EBITDA and adjusted earnings per common share attributable to OM Group, Inc. common stockholders - assuming dilution, and then further to the pro-forma results excluding both the results from the Advanced Materials business and the VAC LCM charge. The Company's management believes that these are important metrics in evaluating the performance of the Company's business, providing a baseline for evaluating and comparing our operating results and isolating the impact of certain items on our results.  The non-U.S. GAAP financial information set forth in the table above should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.

 

SOURCE OM Group, Inc.



RELATED LINKS

http://www.omgi.com