GenCorp Reports 2012 Fourth Quarter and Annual Results

GenCorp Reports 2012 Fourth Quarter and Annual Results

SACRAMENTO, Calif., Feb. 11, 2013 (GLOBE NEWSWIRE) -- GenCorp Inc. (NYSE:GY)
today reported results for the fourth quarter and fiscal year ended November
30, 2012.

Financial Overview

The Company provides Non-GAAP measures as a supplement to financial results
based on GAAP. A reconciliation of the Non-GAAP measures to the most directly
comparable GAAP measures is included at the end of the release.

Fourth Quarter of Fiscal 2012 compared to Fourth Quarter of Fiscal 2011

  *Net sales for the fourth quarter of fiscal 2012 totaled $298.2 million
    compared to $252.2 million for the fourth quarter of fiscal 2011.
  *Net income for the fourth quarter of fiscal 2012 was $2.8 million, or
    $0.05 diluted income per share, compared to a net income of $0.5 million,
    or $0.01 diluted income per share, for the fourth quarter of fiscal 2011.
  *Adjusted EBITDAP (Non-GAAP measure) for the fourth quarter of fiscal 2012
    was $34.0 million or 11.4% of net sales, compared to $32.3 million or
    12.8% of net sales, for the fourth quarter of fiscal 2011.
  *Segment performance (Non-GAAP measure) before environmental remediation
    provision adjustments, retirement benefit plan expense, and unusual items
    was $34.9 million for the fourth quarter of fiscal 2012, compared to $32.3
    million for the fourth quarter of fiscal 2011.
  *Cash provided by operating activities in the fourth quarter of fiscal 2012
    totaled $23.2 million, compared to $26.4 million in the fourth quarter of
    fiscal 2011.
  *Free cash flow (Non-GAAP measure) in the fourth quarter of fiscal 2012
    totaled $4.8 million, compared to $17.5 million in the fourth quarter of
    fiscal 2011.
  *Net debt (Non-GAAP measure) was $86.6 million as of November 30, 2012
    compared to $138.4 million as of November 30, 2011.
  *Funded backlog was $1,018 million as of November 30, 2012 compared to $902
    million as of November 30, 2011.

Fiscal 2012 compared to Fiscal 2011

  *Net sales for fiscal 2012 totaled $994.9 million compared to $918.1
    million for fiscal 2011.
  *Net loss for fiscal 2012 was ($2.6) million, or ($0.04) loss per share,
    compared to net income of $2.9 million, or $0.05 diluted income per share,
    for fiscal 2011.
  *Adjusted EBITDAP (Non-GAAP measure) for fiscal 2012 was $110.9 million or
    11.1% of net sales, compared to $115.4 million or 12.6% of net sales, for
    fiscal 2011.
  *Segment performance (Non-GAAP measure) before environmental remediation
    provision adjustments, retirement benefit plan expense, and unusual items
    was $119.2 million for fiscal 2012, compared to $114.2 million for fiscal
    2011.
  *Cash provided by operating activities in fiscal 2012 totaled $86.2
    million, compared to $76.8 million in fiscal 2011.
  *Free cash flow (Non-GAAP measure) in fiscal 2012 totaled $49.0 million,
    compared to $55.7 million in fiscal 2011.

"Growth in sales and backlog continued to record levels in 2012," said GenCorp
Inc. President and CEO, Scott J. Seymour. "Our business imperative continues
to be a dedicated focus on the programs and customers we support including
those actions required to improve the affordability of our products."

Operations Review

Aerospace and Defense Segment

Net sales for the fourth quarter of fiscal 2012 were $294.5 million compared
to $249.0 million for the fourth quarter of fiscal 2011. The increase in net
sales was primarily due to (i) increase of $36.0 million in the various
Standard Missile programs primarily from the timing of deliveries and (ii)
increased deliveries on the Terminal High Altitude Area Defense ("THAAD")
program generating $15.7 million in additional net sales.

Segment margin before environmental remediation provision adjustments,
retirement benefit plan expense, and unusual items (Non-GAAP measure) was
11.6% for the fourth quarter of fiscal 2012, compared to 12.1% for the fourth
quarter of fiscal 2011. The decrease in the segment margin is primarily due to
an increase in contract loss reserves on a fixed-price space contract as a
result of higher than anticipated manufacturing costs.

Net sales for fiscal 2012 were $986.1 million compared to $909.7 million for
fiscal 2011. The increase in net sales was primarily due to (i) increased
deliveries on the THAAD program generating $39.6 million in additional net
sales; (ii) increase of $34.5 million in the various Standard Missile programs
primarily from the timing of deliveries; and (iii) increased engineering
technology activities on the Triple Target Terminator contracts resulting in
$17.7 million of additional net sales. The increase in net sales was partially
offset by a reduction of $24.9 million on the Hawk program due to the
completion of the production contract in the first quarter of fiscal 2012.

Segment margin before environmental remediation provision adjustments,
retirement benefit plan expense, and unusual items (Non-GAAP measure) was
11.7% for fiscal 2012, compared to 11.9% for fiscal 2011.

A summary of the Company's backlog is as follows:

                      November 30, November 30,
                      2012     2011
                      (In millions)
Funded backlog         $1,018      $902
Unfunded backlog       508         520
Total contract backlog $1,526      $1,422

Total backlog includes both funded backlog (unfilled orders for which funding
is authorized, appropriated and contractually obligated by the customer) and
unfunded backlog (firm orders for which funding has not been appropriated).
Indefinite delivery and quantity contracts and unexercised options are not
reported in total backlog. Backlog is subject to funding delays or program
restructurings/cancellations which are beyond the Company's control.

Real Estate Segment

Sales and segment performance for the fourth quarter of fiscal 2012 were $3.7
million and $0.8 million, respectively, compared to $3.2 million and $2.1
million for the fourth quarter of fiscal 2011, respectively. Sales and segment
performance for fiscal 2012 were $8.8 million and $3.7 million, respectively,
compared to $8.4 million and $5.6 million for fiscal 2011, respectively. Net
sales and segment performance consist primarily of rental property operations.

Additional Information

Liquid Divert and Attitude Control Systems ("LDACS")

As of November 30, 2012, the Company classified its LDACS program as assets
held for sale. The Company expects that it will be required to divest the
LDACS product line in order to finalize the acquisition of the Pratt& Whitney
Rocketdyne division (the "Rocketdyne Business") from United Technologies
Corporation. The net sales associated with the LDACS program totaled $34.3
million in fiscal 2012.

Debt Activity

The Company's debt activity during fiscal 2012 was as follows:

                                          November30, Cash      November 30,
                                          2011      Payments 2012
                                          (In millions)
Term loan                                  $50.0      $(2.5)   $47.5
9½% Senior Subordinated Notes              75.0        (75.0)   —
4 1/16%Convertible Subordinated           200.0       —        200.0
Debentures
2¼% Convertible Subordinated Debentures    0.2         —        0.2
Other debt                                 1.2        (0.2)    1.0
Total Debt and Borrowing Activity          $326.4     $(77.7)  $248.7

In addition, as of November 30, 2012, the Company had $44.8million of
outstanding letters of credit under the $100.0million letters of credit
subfacility compared to $67.1 million as of November 30, 2011.

On January 28, 2013, the Company issued $460.0 million in aggregate principal
amount of its 7.125% Second-Priority Senior Secured Notes due 2021 (the
"7^1/[8]%Notes").The 7^1/[8]%Notes were sold to qualified institutional
buyers in accordance with Rule 144A under the Securities Act of 1933, as
amended (the "Securities Act") and outside the U.S. in accordance with
Regulation S under the Securities Act. The Company intends to use the net
proceeds of the 7^1/[8]%Notes offering to fund, in part, the proposed
acquisition of the Rocketdyne Business, and to pay related fees and expenses.
The gross proceeds from the 7^1/[8]%Notes offering were deposited into
escrow pending the consummation of the proposed Acquisition.If the
Acquisition is not consummated on or prior to July 21, 2013 (subject to a
one-month extension upon satisfaction of certain conditions) or upon the
occurrence of certain other events, the Company will be required to redeem the
7^1/[8]%Notes at a price equal to 100% of the issue price of the
7^1/[8]%Notes, plus accrued and unpaid interest, if any, to, but not
including the date of redemption.

Retirement Benefit Plans

The decline in the discount rate used to measure the present value of the
defined benefit pension liabilities from the Company's fiscal year end 2011 to
its fiscal year-end 2012 resulted in a significant increase in the unfunded
pension obligation for the Company's tax-qualified defined benefit pension
plan. The unfunded pension obligation for the Company's tax-qualified defined
benefit pension plan was $454.5 million as of November 30, 2012 with total
defined benefit pension assets of $1,243.1 million as of such date. However,
as a result of the Moving Ahead for Progress in the 21st Century Act, which
was signed into law on July 6, 2012 and provides temporary relief for
employers who sponsor defined benefit pension plans, the Company does not
expect to make any cash contributions to its tax-qualified defined benefit
pension plan until fiscal 2015 or later. In addition, under the Office of
Federal Procurement Policy rules, the Company will recover portions of any
required pension funding through its government contracts and the Company
estimates that approximately 84% of its unfunded pension obligation as of
November 30, 2012 is related to its government contracting business.

The Company estimates that its non-cash retirement benefit expense will be
approximately $64million in fiscal 2013.

The funded status of the pension plan may be adversely affected by the
investment experience of the plan's assets, by any changes in U.S. law and by
changes in the statutory interest rates used by tax-qualified pension plans in
the U.S. to calculate funding requirements. Accordingly, if the performance of
the Company's plan's assets does not meet assumptions, if there are changes to
the Internal Revenue Service regulations or other applicable law or if other
actuarial assumptions are modified, future contributions to the underfunded
pension plan could be higher than the Company expects.

Forward-Looking Statements

This release may contain certain "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
Such statements in this release and in subsequent discussions with the
Company's management are based on management's current expectations and are
subject to risks, uncertainty and changes in circumstances, which cause actual
results, performance or achievements to differ materially from anticipated
results, performance or achievements. All statements contained herein and in
subsequent discussions with the Company's management that are not clearly
historical in nature are forward-looking and the words "anticipate,"
"believe," "expect," "estimate," "plan," and similar expressions are generally
intended to identify forward-looking statements. A variety of factors could
cause actual results or outcomes to differ materially from those expected and
expressed in the Company's forward-looking statements. Some important risk
factors that could cause actual results or outcomes to differ from those
expressed in the forward-looking statements include, but are not limited to,
the following:

  *cancellation or material modification of one or more significant
    contracts;
  *future reductions or changes in U.S. government spending;
  *negative audit of the Company's business by the U.S. government;
  *conditions relating to the acquisition of the Rocketdyne Business which
    could delay or materially adversely affect the timing of its completion,
    or prevent it from occurring;
  *inability to satisfy the conditions or obtain the approvals required to
    complete acquisition of the Rocketdyne Business or material restrictions
    or conditions on such approvals;
  *failure to complete the acquisition of the Rocketdyne Business;
  *following the acquisition of the Rocketdyne Business, if consummated,
    integration difficulties or inability to integrate the Rocketdyne Business
    into the Company's existing operations successfully or to realize the
    anticipated benefits of the Acquisition;
  *ability to effectively manage the Company's expanded operations following
    the acquisition of the Rocketdyne Business;
  *expenses related to the acquisition of the Rocketdyne Business and the
    integration of our operations with the Rocketdyne Business if the
    acquisition is consummated;
  *the increase in the Company's leverage and debt service obligations as a
    result of the Acquisition;
  *cost overruns on the Company's contracts that require the Company to
    absorb excess costs;
  *failure of the Company's subcontractors or suppliers to perform their
    contractual obligations;
  *failure to secure contracts;
  *failure to comply with regulations applicable to contracts with the U.S.
    government;
  *failure to comply with applicable laws relating to export controls;
  *costs and time commitment related to potential acquisition activities;
  *the Company's inability to adapt to rapid technological changes;
  *failure of the Company's information technology infrastructure;
  *failure to effectively implement the Company's enterprise resource
    planning system;
  *product failures, schedule delays or other problems with existing or new
    products and systems;
  *the release, or explosion, or unplanned ignition of dangerous materials
    used in the Company's businesses;
  *loss of key qualified suppliers of technologies, components, and
    materials;
  *the funded status of the Company's defined benefit pension plan and the
    Company's obligation to make cash contributions in excess of the amount
    that the Company can recover in its current period overhead rates;
  *effects of changes in discount rates, actual returns on plan assets, and
    government regulations of defined benefit pension plans;
  *the possibility that environmental and other government regulations that
    impact the Company become more stringent or subject the Company to
    material liability in excess of its established reserves;
  *environmental claims related to the Company's current and former
    businesses and operations;
  *reductions in the amount recoverable from environmental claims;
  *the results of significant litigation;
  *occurrence of liabilities that are inadequately covered by indemnity or
    insurance;
  *inability to protect the Company's patents and proprietary rights;
  *business disruptions;
  *the earnings and cash flow of the Company's subsidiaries and the
    distribution of those earnings to the Company;
  *the substantial amount of debt which places significant demands on the
    Company's cash resources and could limit the Company's ability to borrow
    additional funds or expand its operations;
  *the Company's ability to comply with the financial and other covenants
    contained in the Company's debt agreements;
  *risks inherent to the real estate market;
  *changes in economic and other conditions in the Sacramento, California
    metropolitan area real estate market or changes in interest rates
    affecting real estate values in that market;
  *additional costs related to the Company's divestitures;
  *the loss of key employees and shortage of available skilled employees to
    achieve anticipated growth;
  *a strike or other work stoppage or the Company's inability to renew
    collective bargaining agreements on favorable terms;
  *fluctuations in sales levels causing the Company's quarterly operating
    results and cash flows to fluctuate;
  *failure to maintain effective internal controls in accordance with the
    Sarbanes-Oxley Act; and
  *those risks detailed from time to time in the Company's reports filed with
    the SEC.

About GenCorp

GenCorp is a leading technology-based manufacturer of aerospace and defense
products and systems with a real estate segment that includes activities
related to the entitlement, sale and leasing of the Company's excess real
estate assets. Additional information about the Company can be obtained by
visiting the Company's website at http://www.GenCorp.com.

The GenCorp Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12049


GenCorp Inc.
Condensed Consolidated Statements of Operations
                                      Three months ended Year ended
                                      November 30,        November 30,
                                     2012       2011     2012     2011
                                     (In millions, except per share amounts)
                                     (Unaudited)
Net sales                             $298.2   $252.2  $994.9   $918.1
Operating costs and expenses:                                      
Cost of sales (exclusive of items     261.3     218.2    869.6     799.3
shown separately below)
Selling, general and administrative   10.0      10.9     41.9      40.9
Depreciation and amortization         6.2       6.4      22.3      24.6
Other expense, net                    10.7     7.6     26.2     14.5
Total operating costs and expenses    288.2     243.1    960.0     879.3
Operating income                      10.0      9.1      34.9      38.8
Non-operating (income) expense:                                    
Interest income                       (0.1)     (0.2)    (0.6)     (1.0)
Interest expense                      5.7      7.4     22.3     30.8
Total non-operating expense, net      5.6       7.2      21.7      29.8
Income from continuing operations     4.4       1.9      13.2      9.0
before income taxes
Income tax provision                  5.1      2.7     18.9     6.1
(Loss) income from continuing         (0.7)     (0.8)    (5.7)     2.9
operations
Income from discontinued operations,  3.5      1.3     3.1      —
net of income taxes
Net income (loss)                     $2.8     $0.5    $(2.6)   $2.9
Income (Loss) Per Share of Common                                  
Stock
Basic and Diluted                                                  
(Loss) income per share from          $ (0.01) $(0.01) $(0.09)  $0.05
continuing operations
Income per share from discontinued    0.06     0.02   0.05     —
operations, net of income taxes
Net income (loss) per share           $0.05    $0.01   $ (0.04) $0.05
Weighted average shares of common     59.2     58.8    59.0     58.7
stock outstanding – basic and diluted

                                                           
                                                           
GenCorp Inc.                                                
Operating Segment Information                               
                                        Three months ended Year ended
                                        November 30,        November 30,
                                       2012     2011    2012   2011
                                       (In millions)
                                       (Unaudited)
Net Sales:                                                         
Aerospace and Defense                   $294.5   $249.0  $986.1 $909.7
Real Estate                             3.7      3.2     8.8    8.4
Total Net Sales                         $298.2   $252.2  $994.9 $918.1
Segment Performance:                                               
Aerospace and Defense                   $34.1    $30.2   $115.5 $108.6
Environmental remediation provision     (2.1)     (1.9)    (11.4)  (8.9)
adjustments
Retirement benefit plan expense         (4.7)     (5.3)    (18.9)  (21.0)
Unusual items                           (0.2)    (3.5)   (0.7)  (4.1)
Aerospace and Defense Total             27.1      19.5     84.5    74.6
Real Estate                             0.8      2.1     3.7    5.6
Total Segment Performance               $27.9    $21.6   $88.2  $80.2
Reconciliation of segment performance
to income from continuing operations                               
before income taxes:
Segment performance                     $27.9    $21.6   $88.2  $80.2
Interest expense                        (5.7)     (7.4)    (22.3)  (30.8)
Interest income                         0.1       0.2      0.6     1.0
Stock-based compensation expense        (1.4)     (1.4)    (6.5)   (3.7)
Corporate retirement benefit plan       (5.5)     (6.3)    (22.1)  (25.4)
expense
Corporate and other                     (3.6)     (3.1)    (12.7)  (10.8)
Unusual items                           (7.4)    (1.7)   (12.0) (1.5)
Income from continuing operations       $4.4     $1.9    $13.2  $9.0
before income taxes

The Company evaluates its operating segments based on several factors, of
which the primary financial measure is segment performance. Segment
performance represents net sales from continuing operations less applicable
costs, expenses and provisions for unusual items relating to the segment
operations. Segment performance excludes corporate income and expenses, legacy
income or expenses, provisions for unusual items not related to the segment
operations, interest expense, interest income, and income taxes.The Company
believes that segment performance provides information useful to investors in
understanding its underlying operational performance.Specifically, the
Company believes the exclusion of the items listed above permits an evaluation
and a comparison of results for on-going business operations. It is on this
basis that management internally assesses the financial performance of its
segments.

                                                                
GenCorp Inc.                                                     
Condensed Consolidated Balance Sheets                            
                                                    November30, November30,
                                                     2012         2011
                                                    (Inmillions)
                                                    (Unaudited)
ASSETS                                                           
Current Assets                                                   
Cash and cash equivalents                           $ 162.1     $188.0
Accounts receivable                                 111.5       107.0
Inventories                                         46.9        49.5
Recoverable from the U.S. government and other third 22.3        23.6
parties for environmental remediation cost
Receivable from Northrop Grumman Corporation         6.0         6.0
("Northrop")
Other receivables, prepaid expenses and other       16.8        21.5
Income taxes                                        2.5         5.3
Total Current Assets                                368.1       400.9
Noncurrent Assets                                                
Property, plant and equipment, net                  143.9       126.9
Real estate held for entitlement and leasing        70.2        63.3
Recoverable from the U.S. government and other third 107.9       114.1
parties for environmental remediation cost
Receivable from Northrop                            69.3        66.3
Goodwill                                             94.9        94.9
Intangible assets                                   13.9        15.4
Other noncurrent assets, net                        51.1        57.7
Total Noncurrent Assets                             551.2       538.6
Total Assets                                        $919.3      $939.5
                                                                
LIABILITIES, REDEEMABLE COMMON STOCK, AND                        
SHAREHOLDERS' DEFICIT
Current Liabilities                                              
Short-term borrowings and current portion of         $2.7        $2.8
long-term debt
Accounts payable                                    56.1        33.8
Reserves for environmental remediation costs        39.5        40.7
Postretirement medical and life benefits            7.5         6.8
Advance payments on contracts                       100.1       108.5
Deferred income taxes                               9.4         3.1
Other current liabilities                           103.3       104.1
Total Current Liabilities                           318.6       299.8
Noncurrent Liabilities                                           
Senior debt                                         45.0        47.5
Senior subordinated notes                           —          75.0
Convertible subordinated notes                      200.2       200.2
Other debt                                          0.8         0.9
Deferred income taxes                               2.2         4.5
Reserves for environmental remediation costs        150.0       149.9
Pension benefits                                    454.5       236.4
Postretirement medical and life benefits            68.3        68.4
Other noncurrent liabilities                        68.5        64.1
Total Noncurrent Liabilities                        989.5       846.9
Total Liabilities                                   1,308.1     1,146.7
Commitments and contingencies                                    
Redeemable common stock                             3.9         4.4
Shareholders' Deficit                                            
Preference stock                                     —           —
Common stock                                         5.9         5.9
Other capital                                       269.6       261.2
Accumulated deficit                                  (181.9)     (179.3 )
Accumulated other comprehensive loss, net of income  (486.3)     (299.4 )
taxes
Total Shareholders' Deficit                         (392.7)     (211.6 )
Total Liabilities, Redeemable Common Stock and       $919.3      $939.5
Shareholders' Deficit

                                                                 
                                                                 
GenCorp Inc.                                                      
Condensed Consolidated Statements of Cash Flows                   
                                                     Year ended November30,
                                                     2012      2011
                                                     (In millions)
                                                     (Unaudited)
Operating Activities                                              
Net (loss) income                                   $(2.6)     $2.9
Adjustments to reconcile net (loss) income to net                 
cash provided by operating activities:
Income from discontinued operations                 (3.1)       —
Depreciation and amortization                        22.3        24.6
Amortization of debt discount and financing costs    2.9         6.7
Stock-based compensation                             6.5         3.7
Retirement benefit expense                           41.0        46.4
Tax benefit on stock-based awards                     (3.3)       (0.2)
Loss on debt repurchased and bank amendment           0.4         1.5
Changes in assets and liabilities                     24.2       (8.5)
Net cash provided by continuing operations           88.3        77.1
Net cash used in discontinued operations             (2.1)      (0.3)
Net Cash Provided by Operating Activities            86.2        76.8
Investing Activities                                              
Marketable securities activity, net                   —          26.7
Proceeds from sale of land                            0.6         —
Capital expenditures                                 (37.2)     (21.1)
Net Cash (Used in) Provided by Investing Activities  (36.6)      5.6
Financing Activities                                              
Tax benefit on stock-based awards                     3.3         0.2
Proceeds from shares issued equity plans              1.0         —
Debt issuance costs                                   (1.3)       (4.2)
Debt repayments                                       (77.7)      (70.1)
Vendor financing repayments                           (0.8)      (1.8)
Net Cash Used in Financing Activities                (75.5)     (75.9)
Net (Decrease) Increase in Cash and Cash Equivalents  (25.9)      6.5
Cash and Cash Equivalents at Beginning of Year       188.0      181.5
Cash and Cash Equivalents at End of Year              $162.1     $188.0

Use of Non-GAAP Financial Measures

In addition to segment performance (discussed above), the Company provides the
Non-GAAP financial measures of its operational performance called Adjusted
EBITDAP. The Company uses this metric to further its understanding of the
historical and prospective consolidated core operating performance of its
segments, net of expenses incurred by its corporate activities in the
ordinary, on-going and customary course of its operations. Further, the
Company believes that to effectively compare the core operating performance
metrics from period to period on a historical and prospective basis, the
metric should exclude items relating to retirement benefits (pension and
postretirement benefits), significant non-cash expenses, the impacts of
financing decisions on the earnings, and items incurred outside the ordinary,
on-going and customary course of its operations. Accordingly, the Company
defines Adjusted EBITDAP as GAAP income from continuing operations before
income taxes adjusted by interest expense, interest income, depreciation and
amortization, retirement benefit expense, and unusual items which the Company
does not believe are reflective of such ordinary, on-going and customary
activities. Adjusted EBITDAP does not represent, and should not be considered
an alternative to, net income (loss), as determined in accordance with GAAP.

                                     Three months ended    Year ended
                                      November 30,          November 30,
                                     2012      2011    2012     2011
                                     (In millions, except percentage amounts)
                                     (Unaudited)
Income from continuing operations     $4.4      $1.9    $13.2   $9.0
before income taxes
Interest expense                      5.7        7.4      22.3     30.8
Interest income                       (0.1)      (0.2)    (0.6)    (1.0)
Depreciation and amortization         6.2        6.4      22.3     24.6
Retirement benefit expense            10.2       11.6     41.0     46.4
Unusual items                                                      
Loss on legal related matters and     0.1        3.5      0.7      4.1
settlements
Rocketdyne Business acquisition       7.5        —        11.6     —
related costs
Loss on bank amendment                —          1.3      —        1.3
Loss on debt repurchased              —         0.4     0.4     0.2
Adjusted EBITDAP                      $34.0     $32.3   $ 110.9  $115.4
Adjusted EBITDAP as a percentage of   11.4%      12.8%    11.1%    12.6%
net sales

Adjusted EBITDAP adjusted for stock-based compensation for the fourth quarter
of fiscal 2012 was $35.4 million or 11.9% of net sales, compared to $33.7
million or 13.4% of net sales, for the fourth quarter of fiscal 2011. Adjusted
EBITDAP adjusted for stock-based compensation for fiscal 2012 was $117.4
million or 11.8% of net sales, compared to $119.1 million or 13.0% of net
sales, for fiscal 2011.

In addition to segment performance and Adjusted EBITDAP, the Company provides
the Non-GAAP financial measures of free cash flow and net debt. The Company
uses these financial measures, both in presenting its results to stockholders
and the investment community, and in its internal evaluation and management of
the business. Management believes that these financial measures are useful to
investors because they permit investors to view the Company's business using
the same tools that management uses to gauge progress in achieving its goals.

                                     Three months ended Year ended
                                      November 30,       November 30,
                                     2012    2011   2012   2011
                                     (In millions)
                                     (Unaudited)
Cash provided by operating activities $23.2   $26.4  $86.2  $76.8
Capital expenditures                  (18.4)  (8.9)  (37.2) (21.1)
Free cash flow                        $4.8    $17.5  $49.0  $55.7

                                     
                         November 30, November 30,
                         2012       2011
                         (In millions)
                         (Unaudited)
Debt principal            $248.7     $326.4
Cash and cash equivalents (162.1)    (188.0)
Net debt                 $86.6      $138.4

Because the Company's method for calculating the Non-GAAP measures may differ
from other companies' methods, the Non-GAAP measures presented above may not
be comparable to similarly titled measures reported by other companies. These
measures are not recognized in accordance with GAAP, and the Company does not
intend for this information to be considered in isolation or as a substitute
for GAAP measures.

CONTACT: Investors:
         Kathy Redd, chief financial officer
         916.355.2361
         Media:
         Glenn Mahone, vice president, communications
         202.302.9941

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