Dynacast International Inc. Reports Third Quarter 2012 Financial Results

   Dynacast International Inc. Reports Third Quarter 2012 Financial Results

PR Newswire

CHARLOTTE, N.C., Nov. 19, 2012

CHARLOTTE, N.C., Nov. 19, 2012 /PRNewswire/ --As previously announced, the
management of Dynacast International Inc. ("Dynacast") will hold a conference
call at 11.30 a.m., Eastern Time, on Tuesday, November 20, 2012, to review
Dynacast's results for the third quarter of 2012.

Net sales were $129.3 million for the three months ended September 30, 2012, a
$7.1 million, or 5.8%, increase from the corresponding period in the prior
year. Net loss decreased by $18.0 million to $0.3 million for the three months
ended September 30, 2012 compared to the corresponding period in the prior
year. Adjusted EBITDA increased by $1.0 million, or 4.3%, to $24.2 million for
the three months ended September 30, 2012 compared to the corresponding period
in the prior year.

Net sales were $377.5 million for the nine months ended September 30, 2012, a
$14.7 million, or 4.1%, increase from the corresponding period in the prior
year. Net loss for the nine months ended September 30, 2012 was $1.4 million,
a reduction of $9.4 million from the corresponding period in the prior year.
Adjusted EBITDA increased by $1.7 million, or 2.6%, to $68.3 million for the
nine months ended September 30, 2012 compared to the corresponding period in
the prior year.

Results for the three and nine months ended September 30, 2012 were impacted
by $1.0 and $9.3 million, respectively, of additional depreciation and
amortization expense related to the allocation of the purchase price paid in
the acquisition of the Dynacast business from Melrose plc in July 2011. In
addition, results were negatively impacted by the weakening of the average
Euro to U.S. Dollar exchange rate, resulting in a reduction in net sales of
$4.8 and $11.8 million and a reduction in net income of $0.3 and $1.6 million
for the three and the nine months ended September 30, 2012, respectively.

Conference Call

The conference call will be held at 11.30 a.m., Eastern Time, on November 20,
2012 and may be accessed by dialing (877) 873-1192 for U.S. callers or (706)
643-1195 for international callers. Please reference conference ID# 68783105.

A telephonic replay of the call will be available after 2.00 p.m., Eastern
Time, on November 20, 2012 and continue through December 20, 2012 and can be
accessed by dialing (855) 859-2056 for U.S. callers or (404) 537-3406 for
international callers. Please reference conference ID# 68783105.

About Dynacast International Inc.

Dynacast is a global manufacturer of small, engineered die cast components for
thousands of companies in industries such as automotive electronics, consumer
electronics, healthcare, hardware, computers and peripherals and many others.

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 20 manufacturing
facilities in 16 countries around the world. Please visit www.dynacast.comto
learn more.

Contact:
Suzi McNicholas
704-927-2785

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
year-over-year or with other businesses, including non-controlling interests,
management fees, stand-alone costs, 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 core business during the periods
under review. 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. 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. For the quarter
and nine months ended September 30, 2012 and 2011, we believe that Segment
EBITDA is useful in evaluating operating profitability as it excludes the
depreciation and amortization expenses resulting from the allocation of the
purchase price paid in the July 19, 2011 acquisition of the Dynacast business
to the tangible and intangible assets acquired and liabilities assumed, which
expenses were not present during the period July 1, 2011 through July 19, 2011
and the period January 1, 2011 through July 19, 2011. 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:

  odo not reflect our cash expenditures or future requirements for capital
    expenditures or contractual commitments;
  odo not reflect changes in, or cash requirements for, our working capital
    needs;
  odo not reflect the significant interest expense, or the cash requirements
    necessary, to service interest or principal payments on our debts;
  odo not reflect any cash requirements that would be required for
    replacement of assets that are being depreciated or amortized; and
  omay 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

This news release contains, and Dynacast and our management may make, certain
statements that constitute "forward looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. 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. Such statements include, in particular, statements about our
plans, intentions, beliefs or current expectations concerning, among other
things, our results of operations, financial condition, liquidity, earnings
outlook, prospects, growth, strategies, the industry in which we operate,
economic conditions and trends in the regions in which we operate, our
potential for growth in specified markets or geographies, facility
improvements and capital expenditures. 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.
In addition, even if actual outcomes or results are consistent with the
forward-looking statements contained, those outcomes or results may not be
indicative of outcomes or results in subsequent periods.

You should not place undue reliance on any forward-looking statement and you
should consider the following factors that may cause actual outcomes or
results to differ materially from forward-looking statements, as well as those
discussed in any of our subsequent filings with the Securities and Exchange
Commission ("SEC"):

  ocompetitive risks from other zinc or aluminum die cast producers or
    self-manufacturing by customers;
  orelationships with, and financial or operating conditions of, our key
    customers, suppliers and other stakeholders;
  oloss of, or an inability to attract, key management;
  ofluctuations in the supply of, and prices for and raw materials in the
    areas in which we maintain production facilities;
  ounion disputes, labor unrest or other employee relations issues;
  oavailability of production capacity;
  oenvironmental, health and safety costs;
  oimpact of future mergers, acquisitions, joint ventures or teaming
    agreements;
  oour substantial level of indebtedness and ability to generate cash;
  ochanges in the availability and cost of capital;
  ochanges in or timing of our restructuring or plant development plans;
  orestrictions in our debt agreements;
  ofluctuations in the relative value of the U.S. dollar and the currencies
    of the countries and regions in which we operate and the effectiveness of
    our currency hedging activities;
  oability to repatriate cash held by our foreign subsidiaries;
  ochanges in political, economic, regulatory and business conditions,
    including changes in taxes, tax rates, duties or tariffs;
  oacts of war or terrorist activities;
  oexistence or exacerbation of general political instability and uncertainty
    in the U.S. or in other countries or regions in which we operate;
  ocyclical demand and pricing within the end markets for our products;
  oother risks and factors identified in this news release and in our filings
    with the SEC.

Any forward-looking statements speak only as of the date of those statements.
All subsequent written and oral forward-looking statements concerning the
matters addressed in this news release and attributable to us or any person
acting on our behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to in this news release. Except to
the extent required by applicable law or regulation, we undertake no
obligation to update these forward-looking statements to reflect events or
circumstances after the date of the forward-looking statement or to reflect
the occurrence of unanticipated events. Comparisons of results for current and
any prior periods are not intended to express any future trends or indications
of future performance, unless expressed as such, and should only be viewed as
historical data.

******

Dynacast International Inc.



Condensed Statement of Operations (Unaudited)
                                 Consolidated                  Combined
                                 Successor Company             Predecessor
                                                               Company
                                 For the Three  For the        For the Period
                                 Months Ended   Period July    July 1, 2011
                                                20, 2011
(in millions of dollars)         September 30,  to September   to July 19,
                                 2012           30, 2011       2011
                                 $        $        $       
Net sales                                               
                                    129.3       95.9    26.3
Costs of goods sold              (98.2)         (79.8)         (20.5)
                 Gross margin    31.1           16.1           5.8
Operating expenses:
      Selling, general and       (15.5)         (9.3)          (3.5)
      administrative
      Transaction costs          (0.3)          (15.4)         -
      Restructuring expense      -              (0.1)          (0.1)
                 Total
                 operating       (15.8)         (24.8)         (3.6)
                 expenses
                 Operating
                 income          15.3           (8.7)          2.2
                 (loss)
Other income (expense)
      Interest expense, net      (12.2)         (15.0)         (0.1)
                 Income (loss)
                 before income   3.1            (23.7)         2.1
                 taxes
Income tax (expense) benefit     (3.4)          3.2            0.1
Net (loss) income                (0.3)          (20.5)         2.2
Less: net income attributable    -              (0.1)          -
to non-controlling interests
Less: Series A preferred stock   -              (2.4)          -
dividends and accretion
                                 $        $        $       
Net (loss) income attributable                          
to controlling stockholders                   (23.0)    2.2
                                 (0.3)



Dynacast International Inc.



Condensed Statement of Operations (Unaudited)
                                Consolidated                   Combined
                                Successor Company              Predecessor
                                                               Company
                                For the Nine    For the        For the Period
                                Months Ended    Period July    January 1, 2011
                                                20, 2011
(in millions of dollars)        September 30,   to September   to July 19,
                                2012            30, 2011       2011
                                $         $        $       
Net sales                                               
                                                       266.9
                                377.5          95.9
Costs of goods sold             (290.6)         (79.8)         (203.7)
                 Gross margin   86.9            16.1           63.2
Operating expenses:
    Selling, general and        (44.3)          (9.3)          (24.3)
    administrative
    Transaction costs           (0.5)           (15.4)         -
    Restructuring (expense)     (0.5)           (0.1)          0.8
    credit
                 Total
                 operating      (45.3)          (24.8)         (23.5)
                 expenses
                 Operating
                 income         41.6            (8.7)          39.7
                 (loss)
Other income (expense)
    Interest expense            (37.2)          (15.0)         (1.5)
    Other income                0.1             -              0.1
                 Income (loss)
                 before income  4.5             (23.7)         38.3
                 taxes
Income tax (expense) benefit   (5.9)           3.2            (9.8)
Net (loss) income               (1.4)           (20.5)         28.5
Less: net income attributable   (0.2)           (0.1)          (0.2)
to non-controlling interests
Less: Series A preferred stock  (0.2)           (2.4)          -
dividends and accretion
                                $         $        $       
Net (loss) income attributable                          
to controlling stockholders                             28.3
                                (1.8)          (23.0)



Dynacast International Inc.



Condensed Balance Sheet (Unaudited)
                                                          Consolidated Successor Company
(in millions of dollars)                                  September 30,      December 31,
                                                          2012               2011
Assets
Current assets
                                                          $           $      
    Cash and cash equivalents                                  22.4           
                                                                             21.1
    Accounts receivable, net                             78.4               66.9
    Inventory                                             43.8               39.0
    Derivatives                                           1.0                1.3
    Other assets                                          9.7                8.2
    Deferred income taxes                                 5.0                5.8
                          Total current assets            160.3              142.3
Property and equipment, net                              123.5              119.9
Intangible assets, net                                   262.6              270.7
Goodwill                                                  239.8              238.4
Deferred financing costs                                  20.5               22.1
Other assets                                              2.2                2.2
Deferred income taxes                                    4.4                4.9
                                                          $           $      
                          Total assets                        813.3           
                                                                             800.5
Liabilities and Equity
Current liabilities
                                                          $           $      
    Accounts payable                                           61.1           
                                                                             52.7
    Income taxes payable                                  6.1                6.8
    Derivatives                                           0.2                0.2
    Accrued expenses                                      33.0               31.7
    Accrued interest                                      6.9                14.6
    Other liabilities                                     13.7               11.2
    Deferred revenue                                    8.5                8.4
    Current portion of accrued pension and retirement     0.6                0.6
    benefit obligations
    Current portion of long-term debt                     5.6                5.0
    Deferred income taxes                                2.4                1.3
                          Total current liabilities       138.1              132.5
Other liabilities                                         1.0                1.6
Accrued interest and dividends                            9.5                3.4
Accrued pension and retirement benefit obligations        19.3               19.5
Long-term debt, net                                       390.2              392.5
Mandatorily redeemable preferred stock                   53.0               26.5
Warrants                                                  6.1                6.1
Deferred income taxes                                     69.3               72.2
                          Total liabilities               686.5              654.3
Series A convertible mandatory redeemable preferred       -                  26.5
stock,
Puttable common stock                                     1.5                1.5
Commitments and contingencies
Equity
    Common stock                                          0.2                0.2
    Additional paid-in capital                            167.5              166.6
    Accumulated foreign currency translation adjustment,  (20.3)             (27.8)
    net
    Unrealized gain (loss) on cash flow hedges, net       0.2                (0.2)
    Cumulative unrealized pension losses, net             (0.8)              (0.8)
    Accumulated deficit                                   (25.4)             (23.6)
                          Total equity attributable to    121.4              114.4
                          controlling stockholders
Non-controlling interests                                 3.9                3.8
                          Total equity                    125.3              118.2
                                                          $           $      
                          Total liabilities and equity        813.3           
                                                                             800.5



Dynacast International Inc.



Condensed Statements of Cash Flows (Unaudited)
                              Consolidated                   Combined
                              Successor Company              Predecessor
                                                             Company
                              For the Nine   For the Period  For the Period
                              Months Ended   July 20, 2011   January 1, 2011
(in millions of dollars)      September 30,  to September    to July 19, 2011
                              2012           30, 2011
Cash flows from operating
activities
                              $        $         $        
Net (loss) income                                      
                                  (1.4)     (20.5)     28.5
Adjustments to reconcile net
(loss) income to cash
provided by operating
activities:
 Depreciation and             24.2           6.5             8.3
 amortization
 Management fee from Melrose  -              -               0.5
 Amortization of deferred     2.7            6.3             -
 financing costs
 Inventory step-up            -              6.2             -
 Accretion of preferred stock -              0.8             -
 Non-cash transaction         -              3.5             -
 expenses
 Deferred income taxes        (2.2)          (3.5)           (0.6)
 Beneficial conversion value  0.9            -               -
 of Series A preferred stock
 Other                        0.4            0.3             0.9
Changes in operating assets
and liabilities:
 Accounts receivable          (10.7)         1.3             (10.3)
 Inventory                    (4.6)          2.0             (1.1)
 Prepaid assets               (2.4)          0.1             (1.3)
 Other assets                 (0.5)          (0.5)           (0.4)
 Accounts payable             8.0            5.2             3.5
 Income taxes payable         1.2            (4.7)           (0.4)
 Accrued expenses             2.5            (3.4)           1.5
 Accrued interest             (1.7)          8.1             -
 Other liabilities            1.2            (0.4)           1.8
        Net cash flows
        provided by operating 17.6           7.3             30.9
        activities
Cash flows from investing
activities
Business acquisition, net of  -              (585.5)         -
cash acquired
Capital expenditures          (15.7)         (2.7)           (7.0)
Settlement of derivative      1.6            -               0.6
contracts
Repayment of notes receivable -              -               26.1
issued to affiliates
        Net cash flows (used
        in) provided by       (14.1)         (588.2)         19.7
        investing activities
Cash flows from financing
activities
Issuance of common stock      -              170.0           -
Issuance of preferred stock   -              53.0            -
Issuance of long-term debt    -              400.0           -
Draws on revolver             24.5           6.5             -
Repayments of revolver        (22.5)         -               -
Debt issuance costs           (1.1)          (27.3)          -
Distributions to Melrose, net -              -               (26.1)
Dividends paid to             (0.2)          -               (0.2)
non-controlling interests
Dividends paid to Melrose     -              -               (12.9)
Contribution from Melrose     -              -               4.3
Repayment of long-term debt   (3.7)          (1.3)           (0.4)
Repayment of notes payable    -              -               (27.6)
from affiliates
        Net cash flows (used
        in) provided by       (3.0)          600.9           (62.9)
        financing activities
Effect of exchange rate
changes on cash and cash      0.8            (0.4)           1.2
equivalents
        Net change in cash    1.3            19.6            (11.1)
        and cash equivalents
Cash and cash equivalents
Beginning of period           21.1           -               27.8
                              $        $         $        
End of period                                          
                                 22.4        19.6      16.7



Dynacast International Inc.



Segment Information (Unaudited)
Revenue
                         Consolidated                      Combined
                         Successor Company                 Predecessor Company
                         For the Three    For the Period   For the Period July
                         Months Ended     July 20, 2011    1, 2011
(in millions of dollars) September 30,    to September     to July 19, 2011
                         2012             30, 2011
                         $         $         $         
Asia Pacific                                        
                           52.3           30.6         12.1
Europe                   40.3             36.4             8.7
North America            36.7             28.9             5.5
                         $         $         $         
    Total                                           
                          129.3            95.9         26.3
                         Consolidated                      Combined
                         Successor Company                 Predecessor Group
                         For the Nine     For the Period  For the Period
                         Months Ended     July 20, 2011   January 1, 2011
(in millions of dollars) September 30,    to September    to July 19, 2011
                         2012             30, 2011
                         $         $         $         
Asia Pacific                                        
                          144.3            30.6         82.0
Europe                   129.6            36.4             110.3
North America            103.6            28.9             74.6
                         $         $         $         
    Total                                          
                          377.5            95.9         266.9



Total Assets
                                                    Consolidated Successor
                                                    Company
(in millions of dollars)                            September    December 31,
                                                    30, 2012     2011
                                                    $       $      
Asia Pacific                                                     
                                                    289.7       267.5
Europe                                              429.8        347.3
North America                                       231.9        170.3
Corporate/Eliminations                              (138.1)      15.4
  Total Segment Assets $       $      
                      
                                                    813.3       800.5



Dynacast International Inc.



Segment Information (Unaudited)
Segment Operating Income
                            Consolidated                   Combined
                            Successor Company              Predecessor Company
                            For the Three  For the Period  For the Period July
                            Months Ended   July 20, 2011   1, 2011
(in millions of dollars)    September 30,  to September    to July 19, 2011
                            2012           30, 2011
                            $        $         $         
Asia Pacific                                          
                                7.1       3.0     1.2
Europe                      5.7            4.0             1.2
North America               6.2            3.9             0.2
  Segment Operating Income  19.0           10.9            2.6
Corporate                   (3.5)          (0.8)           (0.4)
                            15.5           10.1            2.2
Difference in basis of      -              -               0.4
accounting
Reorganization expenses    -              (0.1)           (0.1)
Fixed asset disposal        (0.2)          -               -
Melrose cost allocation     -              -               (0.1)
Transaction costs           -              (15.4)          -
Intangible asset            -              (3.3)           (0.2)
amortization
                            $        $         $         
  Operating income (loss)                             
                                15.3       (8.7)    2.2
                            Consolidated                   Combined
                            Successor Company              Predecessor Company
                            For the Nine   For the Period  For the Period
                            Months Ended   July 20, 2011   January 1, 2011
(in millions of dollars)    September 30,  to September    to July 19, 2011
                            2012           30, 2011
                            $        $         $         
Asia Pacific                                          
                                17.8       3.0    13.2
Europe                      17.7           4.0             22.6
North America               16.4           3.9             8.9
  Segment Operating Income  51.9           10.9            44.7
Corporate                   (9.7)          (0.8)           (2.3)
                            42.2           10.1            42.4
Difference in basis of      -              -               (0.6)
accounting
Reorganization (expenses)   (0.5)          (0.1)           0.8
credit
Fixed asset disposal        (0.1)          -               -
Melrose cost allocation     -              -               (0.5)
Transaction costs           -              (15.4)          -
Intangible asset            -              (3.3)           (2.4)
amortization
                            $        $         $         
  Operating income (loss)                             
                                41.6       (8.7)   39.7



Dynacast International Inc.



Segment Information (Unaudited)
Depreciation and Amortization
                              Consolidated                  Combined
                              Successor Company             Predecessor
                                                            Company
                              For the Three  For the        For the Period
                              Months Ended   Period July    July 1, 2011
                                             20, 2011
(in millions of dollars)      September 30,  to September   to July 19, 2011
                              2012           30, 2011
                              $        $        $        
Asia Pacific                                          
                                  3.2       1.1      0.2
Europe                        3.2            1.1            0.2
North America                 1.7            1.0            0.1
     Total Segment            8.1            3.2            0.5
Corporate                     0.1            -              -
Intangible asset amortization
(excluding debt issuance      -              3.3            0.2
costs)
                              $        $        $        
     Total                                            
                                  8.2       6.5      0.7
                              Consolidated                  Combined
                              Successor Company             Predecessor
                                                            Company
                              For the Nine   For the       For the Period
                              Months Ended   Period July    January 1, 2011
                                             20, 2011
(in millions of dollars)      September 30,  to September  to July 19, 2011
                              2012           30, 2011
                              $        $        $        
Asia Pacific                                          
                                  9.5       1.1      2.1
Europe                        9.3            1.1            2.2
North America                 5.2            1.0            1.5
     Total Segment            24.0           3.2            5.8
Coporate                      0.2            -              0.1
Intangible asset amortization
(excluding debt issuance      -              3.3            2.4
costs)
                              $        $        $        
     Total                                            
                                  24.2       6.5      8.3



Dynacast International Inc.



Segment Information (Unaudited)
Capital Expenditures
                Consolidated                        Combined
                Successor Company                   Predecessor Company
                For the Three     For the Period    For the Period July 1,
                Months Ended      July 20, 2011     2011
(in millions of to September 30,  to September 30,  to July 19, 2011
dollars)        2012              2011
                $          $          $            
Asia Pacific                                 0.2
                  3.2            0.7
Europe          4.0               1.5               -
North America   1.2               0.6               0.3
  Total Segment 8.4               2.8               0.5
Corporate       0.1               -                 -
                $          $          $            
  Total                                      0.5
                  8.5            2.8
                Consolidated                        Combined
                Successor Company                   Predecessor Company
                For the Nine      For the Period    For the Period January 1,
                Months Ended      July 20, 2011     2011
(in millions of to September 30,  to September 30,  to July 19, 2011
dollars)        2012              2011
                $          $          $            
Asia Pacific                                 2.3
                  8.4            0.7
Europe          4.8               1.5               1.3
North America   3.2               0.6               1.8
  Total Segment 16.4              2.8               5.4
Corporate       0.2               -                 -
                $          $          $            
  Total                                      5.4
                  16.6            2.8



Dynacast International Inc.



Reconciliation of Non-GAAP Measures (Unaudited)
The following table reconciles our total net income (loss) to Adjusted EBITDA and our net income (loss) by segment to Segment
EBITDA:
                Consolidated Successor Company                                                Combined Predecessor Company
                For the Three Months Ended             For the Period July 20, 2011           For the Period July 1, 2011
                September 30, 2012                     to September 30, 2011                  to July 19, 2011
(In millions of Europe Asia  North   Corporate Total   Europe Asia North   Corporate Total    Europe Asia North   Corporate Total
dollars)                     America                               America                                America
                       $                             $    $                              $    $                     $  
Net income      $         $     $        $             $    $        $               $    $       
(loss)           6.5 5.2  (1.1)  (10.9)    (0.3)  3.3         3.1   (29.4)   (20.5)  1.1         0.8   (0.7)     2.2
                                                              2.5                                    1.0
Income taxes    (0.5)  1.9   7.4     (5.4)     3.4     1.1    0.5  0.8     (5.6)     (3.2)    0.2    0.2  (0.6)   0.1       (0.1)
Interest        0.6    -     -       11.6      12.2    0.1    -    -       14.9      15.0     -      -    -       0.1       0.1
expense
Other income    (0.9)  -     (0.1)   1.0       -       (0.5)  -    -       0.5       -        (0.1)  -    -       0.1       -
Operating       5.7    7.1   6.2     (3.7)     15.3    4.0    3.0  3.9     (19.6)    (8.7)    1.2    1.2  0.2     (0.4)     2.2
income (loss)
Depreciation &  3.2    3.2   1.7     0.1       8.2     1.1    1.1  1.0     3.3       6.5      0.2    0.2  0.1     0.2       0.7
amortization
EBITDA          8.9    10.3  7.9     (3.6)     23.5    5.1    4.1  4.9     (16.3)    (2.2)    1.4    1.4  0.3     (0.2)     2.9
Non-controlling
interests in    -      -     -       (0.3)     (0.3)   -      -    -       (0.2)     (0.2)    -      -    -       (0.1)     (0.1)
EBITDA
Management fees -      -     -       0.7       0.7     -      -    -       -         -        -      -    -       0.5       0.5
Standalone      -      -     -       -         -       -      -    -       -         -        -      -    -       (0.1)     (0.1)
costs
Restructuring & -      -     -       -         -       -      -    -       0.1       0.1      -      -    -       0.1       0.1
severance
Professional    -      -     -       -         -       -      -    -       -         -        -      -    -       -         -
fees
Inventory fair
value           -      -     -       -         -       2.4    3.2  0.6     -         6.2      -      -    -       -         -
adjustment
Transaction     -      -     -       0.3       0.3     -      -    -       16.0      16.0     -      -    -       -         -
costs
                                                       $    $                              $    $                     $  
Adjusted EBITDA $    $   $    $       $             $    $      $             $    $      
                 8.9 10.3 7.9    (2.9)    24.2   7.5         5.5   (0.4)     19.9     1.4         0.3   0.2       3.3
                                                              7.3                                    1.4
                Consolidated Successor Company                                                Combined Predecessor Company
                For the Nine Months Ended              For the Period July 20, 2011           For the Period January 1, 2011
                September 30, 2012                     to September 30, 2011                  to July 19, 2011
(In millions of Europe Asia  North   Corporate Total   Europe Asia North   Corporate Total    Europe Asia North   Corporate Total
dollars)                     America                               America                                America
                                                       $    $                                     $                     $  
Net income      $    $   $    $        $             $    $        $       $       $    $      
(loss)          17.2  14.2 3.3    (36.1)    (1.4)  3.3         3.1   (29.4)   (20.5)   18.7 11.1  8.1   (9.4)     28.5
                                                              2.5
Income taxes    1.3    3.5   13.3    (12.2)    5.9     1.1    0.5  0.8     (5.6)     (3.2)    4.3    2.0  1.8     1.7       9.8
Interest        1.7    0.2   -       35.3      37.2    0.1    -    -       14.9      15.0     0.3    0.1  (0.2)   1.3       1.5
expense
Other income    (2.5)  (0.1) (0.2)   2.7       (0.1)   (0.5)  -    -       0.5       -        (0.7)  -    (0.8)   1.4       (0.1)
Operating       17.7   17.8  16.4    (10.3)    41.6    4.0    3.0  3.9     (19.6)    (8.7)    22.6   13.2 8.9     (5.0)     39.7
income (loss)
Depreciation &  9.3    9.5   5.2     0.2       24.2    1.1    1.1  1.0     3.3       6.5      2.2    2.1  1.5     2.5       8.3
amortization
EBITDA          27.0   27.3  21.6    (10.1)    65.8    5.1    4.1  4.9     (16.3)    (2.2)    24.8   15.3 10.4    (2.5)     48.0
Non-controlling                                                                                                   $      $  
interests in    -      -     -       (0.7)     (0.7)   -      -    -       (0.2)     (0.2)    -      -    -       (0.7)     
EBITDA                                                                                                                      (0.7)
Management fees -      -     -       1.9       1.9     -      -    -       -         -        -      -    -       0.5       0.5
Standalone      -      -     -       -         -       -      -    -       -         -        -      -    -       (0.3)     (0.3)
costs
Restructuring & -      -     -       0.5       0.5     -      -    -       0.1       0.1      -      -    -       (0.8)     (0.8)
severance
Professional    -      -     -       0.3       0.3     -      -    -       -         -        -      -    -       -         -
fees
Inventory fair
value           -      -     -       -         -       2.4    3.2  0.6     -         6.2      -      -    -       -         -
adjustment
Transaction     -      -     -       0.5       0.5     -      -    -       16.0      16.0     -      -    -       -         -
costs
                                                       $    $                                     $                     $  
Adjusted EBITDA $    $   $     $       $             $    $      $     $       $    $      
                27.0  27.3 21.6   (7.6)    68.3   7.5         5.5   (0.4)     19.9      24.8 15.3 10.4    (3.8)     46.7
                                                              7.3





SOURCE Dynacast International Inc.

Website: http://www.dynacast.com