Dynacast International Inc. Reports Financial Results for the Second Quarter Ended June 30, 2014

CHARLOTTE, N.C., Aug. 18, 2014 /PRNewswire/ -- As previously announced, the management of Dynacast International Inc. ("Dynacast") will hold a conference call at 11:00 a.m., Eastern Time, on Monday, August 18, 2014 to review Dynacast's results for the three and six months ended June 30, 2014.

Net sales were $157.2 million for the three months ended June 30, 2014, a $14.1 million, or 9.9%, increase from the corresponding period in the prior year.  Adjusted EBITDA increased by $5.3 million, or 20.9%, to $30.7 million for the three months ended June 30, 2014 compared to the corresponding period in the prior year (as recast). Dynacast reported a net income of $4.0 million for the three months ended June 30, 2014, a $3.6 million increase from the corresponding period in the prior year (as recast). 

Net sales were $308.5 million for the six months ended June 30, 2014, a $25.7 million, or 9.1%, increase from the corresponding period in the prior year.  Adjusted EBITDA increased by $4.7 million, or 8.9%, to $57.4 million for the six months ended June 30, 2014 compared to the corresponding period in the prior year (as recast).  Dynacast reported a net income of $4.3 million for the six months ended June 30, 2014, a $4.3 million increase from the corresponding period in the prior year (as recast). 

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, 2014.  The overall impact of all currency movements was to increase net sales by $2.1 and $2.7 million for the three and six months ended June 30, 2014, respectively, and to increase operating income by $0.1 million and $-0-, respectively. The overall impact of all currency movements was to increase adjusted EBITDA by $0.2 and $0.1 million for the three and six months ended June 30, 2014, respectively.

Conference Call

The conference call will be held at 11:00 a.m., Eastern Time, on August 18, 2014 and may be accessed by dialing (877) 873-1192 for U.S. callers or (706) 643-1195 for international callers. Please reference conference ID# 84332176.

A telephonic replay of the call will be available after 2.00 p.m., Eastern Time, on August 18, 2014 and continue through September 18, 2014 and can be accessed by dialing (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. Please reference conference ID# 84332176.

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, telecommunications, 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 and the conference call to review second quarter results 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, changes in accounting principles, 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 U.S. GAAP or are calculated using financial measures that are not calculated in accordance with U.S. 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 U.S. 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 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 U.S. 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 14, 2014 and in any of our subsequent filings with the Securities and Exchange Commission.

CONTACT:
Richard J. Lehman Jr.
980-297-7354
[email protected]

SOURCE Dynacast International Inc.