OM Group Announces Fourth Quarter 2012 Financial Results

           OM Group Announces Fourth Quarter 2012 Financial Results

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

PR Newswire

CLEVELAND, Feb. 19, 2013

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 arock-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     16,015             16,015
partner
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      22,793             92,813
partner injunction
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        75,351             -
seller
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        11,259             86,513
seller
Other non-current liabilities           55,446             62,032
Stockholders' equity:
Total OM Group, Inc. stockholders'      1,206,710          1,234,902
equity
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      YearEnded December 31
                              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          64,407       75,401     260,519      229,052
administrative expenses
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   (5,275)      -          (6,524)      -
deferred financing fees
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  (44,209)     10,546     (48,449)     28,943
income tax expense
Income tax benefit           4,063        42,293     2,771        17,796
Income (loss) from
continuing operations, net    (40,146)     52,839     (45,678)     46,739
of tax
Income (loss) from
discontinued operations, net  (156)        36         (266)        (59)
of tax
Consolidated net income       (40,302)     52,875     (45,944)     46,680
(loss)
Net (income) loss
attributable to               6,303        147        7,063        (4,669)
noncontrolling interests
Net income (loss)             $           $        $         $    
attributable to OM Group,     (33,999)    53,022    (38,881)     42,011
Inc. common stockholders
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    (33,843)    52,986    (38,615)     42,070
of tax
Income (loss) from
discontinued operations, net  (156)        36         (266)        (59)
of tax
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        Year Ended December 31
                            December 31
                            2012         2011         2012        2011
(In thousands)
Operating activities
Consolidated net income     $         $  52,875  $        $  46,680
(loss)                      (40,302)                  (45,944)
Adjustments to reconcile
consolidated net income
(loss) to net
cash provided by
operating activities:
(Income) loss from          156          (36)         266         59
discontinued operations
Depreciation and            22,914       23,103       89,276      70,367
amortization
Amortization of deferred    1,267        774          5,405       2,305
financing fees
Accelerated amortization
of deferred financing       5,275        -            6,524       -
fees
Share-based compensation    398          1,392        5,548       6,510
expense
Foreign exchange (gain)     (877)        (3,300)      1,007       (10,564)
loss
Deferred income tax         (10,634)     (4,245)      (30,573)    (31,567)
provision (benefit)
VAC lower of cost or
market ("LCM") charges      24,648       (47,910)     78,399      14,534
(a)
Allowance on GTL prepaid    (5,645)      -            (5,645)     (6,225)
tax asset
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     35,196       (45,914)     40,889      (1,345)
accrued income taxes
Other, net                  (6,824)      (5,759)      (1,906)     7,501
Net cash provided by        50,812       38,293       208,367     124,796
operating activities
Investing activities
Expenditures for
property, plant and         (24,708)     (30,077)     (71,725)    (56,482)
equipment
Proceeds from sale of       -            -            5,138       9,693
property
Cash (paid) received for
acquisitions or purchase    6,045        (55,493)     6,045       (729,401)
price settlements
Other, net                  -            (2,976)      -           (2,976)
Net cash used for           (18,663)     (88,546)     (60,542)    (779,166)
investing activities
Financing activities
Payments on revolving       -            -            -           (120,000)
line of credit
Payments of long-term       (130,878)    -            (213,532)   -
debt
Proceeds from long-term     -            -            -           697,975
debt
Debt issuance costs         -            (893)        -           (30,176)
Payment related to          -            -            (254)       (193)
surrendered shares
Proceeds from exercise      1            -            1           361
of stock options
Net cash provided by
(used for) financing        (130,877)    (893)        (213,785)   547,967
activities
Effect of exchange rate     987          (3,077)      1,426       (2,048)
changes on cash
Cash and cash
equivalents
Decrease in cash and        (97,741)     (54,223)     (64,534)    (108,451)
cash equivalents
Balance at the beginning    325,353      346,369      292,146     400,597
of the period
Balance at the end of       $         $ 292,146   $        $ 292,146
the period                  227,612                   227,612
(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          Year Ended December 31
                         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                 $ (21,991)     $ 10,987     $ (22,265)   $ (66,914)
Technologies(a)(b)
Advanced Materials       (9,266)        11,438       6,427        81,186
Specialty                4,696          5,940        37,990       62,251
Chemicals(c)(d)
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  $ 15.3  $ 111.2
charges



(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         Advanced   Specialty  Battery       Corporate  Consolidated
                    Technologies     Materials  Chemicals  Technologies
Operating profit    $         $      $      $        $          $  
(loss) - as                                            (10,445)  (35,063)
reported            (21,991)         (9,266)   4,696     1,943
VAC inventory
purchase accounting 8,377            -          -          -             -          8,377
step-up and LCM
charges
Adjusted operating  (13,614)         (9,266)    4,696      1,943         (10,445)   (26,686)
profit
Depreciation and    10,777           4,174      5,210      2,554         199        22,914
amortization
                    $         $      $      $        $          $   
Adjusted EBITDA                                        (10,246)  (3,772)
                    (2,837)         (5,092)   9,906     4,497
Three Months Ended December 31, 2011
(in thousands)      Magnetic         Advanced   Specialty  Battery       Corporate  Consolidated
                    Technologies     Materials  Chemicals  Technologies
Operating profit    $         $      $      $        $          $   
(loss) - as             10,987                       (11,780)  16,143
reported                             11,438    5,940     (442)
VAC inventory
purchase accounting 13,083           -          -          -             -          13,083
step-up and LCM
charges
Acquisition-related 2,245            -          -          -             2,600      4,845
charges
Adjusted operating  26,315           11,438     5,940      (442)         (9,180)    34,071
profit
Depreciation and    9,864            5,239      5,362      2,533         105        23,103
amortization
                    $         $      $      $        $         $   
Adjusted EBITDA         36,179                        (9,075)   57,174
                                     16,677    11,302     2,091
Year Ended December 31, 2012
(in thousands)      Magnetic         Advanced   Specialty  Battery       Corporate  Consolidated
                    Technologies     Materials  Chemicals  Technologies
Operating profit    $         $      $      $        $          $   
(loss) - as                                            (43,051)  (1,312)
reported            (22,265)         6,427      37,990     19,587
VAC inventory
purchase accounting 55,874           -          -          -             -          55,874
step-up and LCM
charges
Pension settlement  -                -          -          -             2,469      2,469
expense
Gain on sale of     -                -          (2,857)    -             -          (2,857)
property
Adjusted operating  33,609           6,427      35,133     19,587        (40,582)   54,174
profit
Depreciation and    40,832           16,897     20,768     10,091        688        89,276
amortization
                    $         $      $      $        $          $  
Adjusted EBITDA         74,441                         (39,894)  143,450
                                     23,324    55,901     29,678
Year Ended December 31, 2011
(in thousands)      Magnetic         Advanced   Specialty  Battery       Corporate  Consolidated
                    Technologies(a)  Materials  Chemicals  Technologies
Operating profit    $         $      $      $        $          $   
(loss) - as                                             (52,121)  36,527
reported            (66,914)         81,186    62,251     12,125
VAC inventory
purchase accounting 106,600          -          -          -             -          106,600
step-up and LCM
charges
Acquisition-related 4,600            -          -          -             15,400     20,000
charges
Gain on sale of     -                -          (9,693)    -             -          (9,693)
property
Adjusted operating  44,286           81,186     52,558     12,125        (36,721)   153,434
profit
Depreciation and    17,202           20,687     22,406     9,592         480        70,367
amortization
                    $         $      $      $        $          $  
Adjusted EBITDA         61,488                          (36,241)  223,801
                                     101,873   74,964     21,717
(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   $               DilutedEPS      $           Diluted
per share data)                                                      EPS
Income (loss) from
continuing operations
attributable to OM      $ (33,843)     $    (1.06)  $          $    
Group, Inc. common                                       52,986     1.66
stockholders - as
reported
VAC inventory purchase
accounting step-up and  5,791           0.18             9,244       0.29
lower of cost or market
charges, net of tax
Acquisition-related     -               -                4,150       0.13
charges, net of tax
Accelerated
amortization of         5,275           0.17             -           -
deferred financing
fees, net of tax
EPT escrow settlement,  (6,045)         (0.19)           -           -
net of tax
Other discrete tax      -               -                (40,927)    (1.28)
items, net
Adjusted income (loss)
from continuing                                          $          $    
operations attributable $ (28,822)     $    (0.90)  25,453     0.80
to OM Group, Inc.
common stockholders
Weighted average shares                 31,896                       31,989
outstanding - diluted
                        Year Ended                       Year Ended
                        December 31, 2012                December 31, 2011
(in thousands, except   $               Diluted EPS      $           Diluted
per share data)                                                      EPS
Income (loss) from
continuing operations
attributable to OM      $ (38,615)     $    (1.21)  $          $    
Group, Inc. common                                       42,070     1.35
stockholders - as
reported
VAC inventory purchase
accounting step-up and  38,623          1.21             75,425      2.41
lower of cost or market
charges, net of tax
Acquisition-related     -               -                18,195      0.58
charges, net of tax
Pension settlement      2,469           0.08             -           -
expense, net of tax
Gain on sale of         (2,857)         (0.09)           (8,568)     (0.27)
property, net of tax
Accelerated
amortizationof         6,524           0.20             -           -
deferred financing
fees, net of tax
EPT escrow settlement,  (6,045)         (0.19)           -           -
net of tax
Adjustment of GTL's
prepaid tax allowance   -               -                (3,424)     (0.11)
(OMG's 55% share)
Other discrete tax      -               -                1,327       0.04
items, net
Adjusted income from
continuing operations                                                $    
attributable to OM      $     99    $      -   $ 125,025  4.00
Group, Inc. common
stockholders
Weighted average shares                 32,011                       31,244
outstanding - diluted
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      $      (35,063)
reported
Non-GAAP items:
VAC inventory purchase accounting 8,377
step-up and LCM charges
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      18,011
accounting related)
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 0.18
step-up and LCM charges
Accelerated amortization of       0.17
deferred financing fees (b)
EPT escrow settlement (b)         (0.19)
Adjusted diluted EPS              $        (0.90)
Exclude:
Advanced Materials loss           0.38
VAC LCM charge (non-purchase      0.39
accounting related)
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. TheCompany'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.

Website: http://www.omgi.com
Contact: OM Group Contact: Rob Pierce, Vice President, Finance,
+1-216-263-7489
 
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