Kaydon Corporation Reports Fourth Quarter and Full Year 2012 Results Business Wire ANN ARBOR, Mich. -- February 21, 2013 Kaydon Corporation (NYSE:KDN) today announced its results for the fourth fiscal quarter and full year ended December 31, 2012. Consolidated Results Fourth quarter sales increased 2.2 percent to $110.5 million, compared to sales of $108.1 million in the fourth quarter of 2011. Diluted earnings per share in the fourth quarter of 2012 equaled $0.25, compared to diluted earnings per share of $0.27 in the fourth quarter of 2011. Adjusted earnings per share, as defined below, was $0.36 in the fourth quarter of 2012, compared to $0.41 in the fourth quarter of 2011. Adjusted EBITDA, as defined below, was $22.4 million during the fourth quarter of 2012, compared to $25.5 million, during the fourth quarter of 2011. Free cash flow, as defined below, for the fourth quarter of 2012 was $33.4 million compared to $16.6 million in the fourth quarter of 2011, as a $26 million net reduction in receivables, inventory and payables resulted in the strongest quarterly free cash flow achieved in over three years. Adjusted gross margin increased to 36.8 percent in the fourth quarter of 2012, compared to 34.9 percent in the third quarter of 2012, as reduced shipments of wind energy bearings benefited product mix. Adjusted gross margin decreased to 36.8 percent from 37.1 percent in the fourth quarter of 2011 as successful efforts to reduce inventories resulted in lower manufacturing activity, negatively impacting gross margins relative to the prior year. As general economic activity improves later in the year, which would result in increased manufacturing activity, and the Company benefits from the actions it took to reduce manufacturing capacity in 2012, gross margins would be expected to continue to improve. Full year 2012 sales totaled $475.2 million compared to $460.1 million for full year 2011. Full year 2012 diluted earnings per share, prior to adjustment for the largely non-cash items noted below and in prior quarters, including certain impairment charges and costs associated with a recently concluded arbitration, equaled $0.02 per share compared to $1.52 per share in full year 2011. Adjusting for the full year effect of the items noted below and in prior quarters, full year 2012 adjusted diluted earnings per share totaled $1.67 per share and full year 2012 adjusted EBITDA totaled $103.7 million. This press release includes certain non-GAAP measures, including adjusted net income, adjusted gross margin, adjusted earnings per share, EBITDA, adjusted EBITDA and free cash flow. Readers should refer to the attached Reconciliation of Non-GAAP Measures exhibit for the reconciliations of the applicable GAAP measures to the non-GAAP measures presented. Adjustments to GAAP results include certain items management considers in evaluating operating performance in each period. During the fourth quarter of 2012, Kaydon incurred $0.6 million of costs associated with restructuring, recapitalization and due diligence activities, and $1.3 million of non-cash amortization of previously incurred net actuarial losses related to postretirement benefit plans. During the third quarter, the Company offered certain former non-retiree employees with vested pension benefits the option of receiving a lump sum payment or an immediate annuity in settlement of all future pension obligations. This de-risking of our pension obligations reduced future pension liabilities by $9.2 million. As a result, the Company incurred a fourth quarter 2012 non-cash settlement charge of $2.9 million resulting from the acceleration of associated unrecognized actuarial losses previously being amortized. This discrete, nonrecurring item is included in the fourth quarter of 2012 selling, general and administrative expense. There was no impact on the Company’s cash position as the distributions totaling $7.3 million were funded using the assets of the pension plan. Order Activity Orders were $102.6 million in the fourth quarter of 2012, compared to $84.6 million in the fourth quarter of 2011, reflecting improved conditions in industrial and military markets and the contribution of Fabreeka’s operations. New orders through mid-February are in excess of 20 percent above prior year’s levels. Backlog at December 31, 2012 was $143.5 million, compared to $151.3 million at September 29, 2012, and $181.6 million at December 31, 2011. Excluding wind orders, backlog increased $11 million in fiscal 2012, reflecting a book-to-bill ratio of 101 percent in core non-wind operations over the last twelve months. Management Commentary James O’Leary, Chairman and Chief Executive Officer commented, “Fiscal 2012 was an important transition year for Kaydon during which we proactively and aggressively managed our business in response to evolving business conditions in many of our key end markets, generating significant free cash flow in the process. After a period of exceptional growth in our military and wind energy businesses that spanned much of the decade preceding the global recession and financial crisis of 2009, recent years saw declines in both of these markets as the aftershocks have created new market realities, notably fiscal austerity in most developed nations. In September, we initiated a comprehensive restructuring of our bearings business to align capacity with current market needs while maintaining our leadership positions in these markets. By rightsizing to reflect current market realities, we have adjusted manufacturing capacity and lowered fixed operating costs to provide enhanced operating leverage and position us for margin expansion when business conditions return to more consistently robust levels. “With much of the revenue decline related to wind energy markets already replaced by acquisitions made over the past two years in our Velocity Controls segment, we look forward to accelerating profitable growth across our product portfolio now that the restructuring process is close to complete. Within our Friction Controls segment, we remain focused on developing profitable expansion opportunities in underserved international markets and in our traditional distribution channels, particularly within our historically critical industrial end markets. With improved operating leverage, investments already made in operational initiatives and sales and marketing resources throughout the Company will make a more pronounced impact as we also benefit from the eventual improvement in the global economy. “As well publicized in recent months, the fourth quarter saw relatively high levels of uncertainty both in the United States, with election and fiscal cliff concerns prevalent, and in Europe, where relative economic stability has yet to translate into meaningfully improved industrial activity. While there continues to be notable uncertainty in many of our markets, incoming orders during the quarter, and thus far in 2013, were healthy as many of our traditional markets served, notably general industrial, experienced gains relative to the prior year. While the first half of 2013 will be impacted by still challenging comparisons of wind performance against fiscal 2012 and some inventory reduction across our industrial customer base,we expect favorable results in comparison to prior periods in the second half as the economy continues to improve, tougher wind comparisons dissipate, and actions taken in late 2012 to restore operating leverage to our critical, core industrial businesses take full effect. “While we wait for a more balanced and sustained improvement in business conditions, a reprioritized focus on our powerful industrial brands and the critical industries they serve, coupled with the enhanced operating leverage expected post-restructuring, should serve us well. With manufacturing capacity and working capital levels better reflective of the current environment, we are well positioned for the gradual economic improvements expected as the year progresses. “Although we remain patient while the economic improvements widely anticipated in 2013 take hold, patience should not be confused with complacence. In 2012, in addition to initiating the necessary restructuring already discussed and completing one acquisition in Velocity Controls while integrating another, we provided ample evidence of our ability to generate strong levels of free cash flow, particularly in our fourth quarter, while providing meaningful returns to our shareholders in a yield starved environment, as demonstrated by our special dividend earlier in March and our commitment to our current regular dividend. Our ability to consistently generate strong levels of free cash flow while providing meaningful cash returns to our shareholders in a still volatile investing environment remains a hallmark of Kaydon as we have managed both cyclical and secular challenges within our businesses since 2009. This solid cash flow performance and ability to provide cash returns to our shareholders regardless of the economic environment will stand us well while we anticipate a resumption in more consistently strong and stable economic conditions.” Segment Results and Review Friction Control Products sales in the fourth quarter of 2012 were $53.9 million, compared to $58.5 million in the 2011 fourth quarter. Operating income totaled $7.1 million, compared to $4.9 million in the prior fourth quarter. Wind revenues were $1.9 million, compared to $9.6 million in the fourth quarter of 2011, reflecting the long expected decline in this market. Excluding wind, Friction Control Products sales were 6.5 percent higher compared to the prior year. The increase in operating income was attributable to the absence of $5.2 million of arbitration related costs that impacted the fourth quarter of 2011 offset in part by the effect of the decline in wind energy sales and inefficiencies and lower cost absorption associated with the continued ramp down of wind bearing production and reduction of inventory. Velocity Control Products sales in the fourth quarter of 2012 were $27.9 million, compared to $20.4 million in the fourth quarter of 2011. Operating income for this segment totaled $4.5 million, compared to $3.4 million in the prior fourth quarter. This segment benefited from the results of Fabreeka, which was acquired in the second quarter of 2012. Other Industrial Products sales in the fourth quarter of 2012 were $28.7 million, compared to $29.2 million in the 2011 fourth quarter. Operating income equaled $4.1 million in the fourth quarter of 2012, compared to operating income of $3.8 million in the fourth quarter of 2011. Financial Position and Free Cash Flow Free cash flow was $33.4 million in the fourth quarter of 2012, compared to $16.6 million in the fourth quarter of 2011, primarily driven by a $26 million current quarter reduction in net receivables, inventory and trade payables. During the quarter, the Company repaid $19.9 million of debt while paying dividends of $12.6 million, including the payment in 2012 of dividends declared in both the third and fourth quarter. As of December 31, 2012, the Company had cash and cash equivalents totaling $53.6 million. Kaydon had borrowings outstanding in the principal amount of $32.0 million under the revolving credit facility and $144.4 million under the term loan facility as of December 31, 2012. About Kaydon Kaydon Corporation is a leading designer and manufacturer of custom engineered, performance-critical products, supplying a broad and diverse group of industrial, military, aerospace, medical, semiconductor and alternative energy equipment, and aftermarket customers. Conference call information: At 11:00 a.m. Eastern time today, Kaydon will host a fourth quarter and full year 2012 earnings conference call. The conference call can be accessed telephonically in a listen-only mode by dialing 1-888-455-2296 and providing the following passcode number: 800500. Participants are asked to dial in 10 minutes prior to the scheduled start time of the call. Alternatively, interested parties are invited to listen to the conference call on the internet at: http://w.on24.com/r.htm?e=569257&s=1&k=6C877B44CFF820370E1083F7DEC7E8EB or by logging on to the Kaydon Corporation website at: http://www.kaydon.com and accessing the conference call at the “Fourth Quarter and Full Year 2012 Conference Call” icon. To accommodate those that are unable to listen at the scheduled start time, a replay of the conference call will be available telephonically beginning at 2:00 p.m. Eastern time today through Wednesday, February 27, 2013 at 2:00 p.m. Eastern time. The replay is accessible by dialing 1-888-203-1112 and providing the following passcode number: 4328596. Additionally, interested parties can access an archive of the conference call on the Kaydon Corporation website at http://www.kaydon.com. This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 regarding the Company’s plans, expectations, estimates and beliefs. Forward-looking statements are typically identified by words such as “believes,” “anticipates,” “estimates,” “expects,” “intends,” “will,” “may,” “should,” “could,” “potential,” “projects,” “approximately,” and other similar expressions, including statements regarding general economic conditions, competitive dynamics and the adequacy of capital resources. These forward-looking statements may include, among other things, projections of the Company’s financial performance, anticipated growth, characterization of and the Company’s ability to control contingent liabilities, and anticipated trends in the Company’s businesses. These statements are only predictions, based on the Company’s current expectations about future events. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievements or that predictions or current expectations will be accurate. These forward-looking statements involve risks and uncertainties that could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In addition, the Company or persons acting on its behalf may from time to time publish or communicate other items that could also be construed to be forward-looking statements. Statements of this sort are or will be based on the Company’s estimates, assumptions, and projections and are subject to risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. Kaydon does not undertake any responsibility to update its forward-looking statements or risk factors to reflect future events or circumstances except to the extent required by applicable law. Certain non-GAAP measures are presented in this press release. These measures should be viewed as supplemental data, rather than as substitutes or alternatives to the most comparable GAAP measures. KAYDON CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2012 2011 2012 2011 Net sales $ 110,516 $ 108,113 $ 475,204 $ 460,120 Cost of sales 70,878 72,684 316,477 299,043 Gross profit 39,638 35,429 158,727 161,077 Selling, general and administrative 27,840 23,483 100,662 90,841 expenses Impairment charge - - 42,953 - Operating income 11,798 11,946 15,112 70,236 Interest expense (997 ) (95 ) (3,135 ) (388 ) Interest income 89 114 327 491 Income before 10,890 11,965 12,304 70,339 taxes Provision for 2,852 3,285 11,754 21,007 income taxes Net income $ 8,038 $ 8,680 $ 550 $ 49,332 Earnings per share: Basic $ 0.25 $ 0.27 $ 0.02 $ 1.52 Diluted $ 0.25 $ 0.27 $ 0.02 $ 1.52 Dividends declared $ 0.20 $ 0.20 $ 11.30 $ 0.78 per share Weighted average common shares outstanding: Basic 31,757 31,763 31,750 32,113 Diluted 31,776 31,776 31,772 32,135 KAYDON CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) December 31, December 31, 2012 2011 Assets: Cash and cash equivalents $ 53,556 $ 225,214 Accounts receivable, net 71,410 78,441 Inventories, net 97,933 110,206 Other current assets 20,354 16,701 Total current assets 243,253 430,562 Property, plant and equipment, net 121,233 168,946 Assets held for sale 6,530 - Goodwill, net 190,323 157,087 Other intangible assets, net 49,177 31,140 Other assets 4,646 3,962 Total assets $ 615,162 $ 791,697 Liabilities and Shareholders' Equity: Accounts payable $ 15,555 $ 19,699 Accrued expenses 21,539 29,766 Current portion long-term debt 10,313 - Total current liabilities 47,407 49,465 Long-term debt 166,062 - Other long-term liabilities 70,917 57,594 Total long-term liabilities 236,979 57,594 Shareholders' equity 330,776 684,638 Total liabilities and shareholders' equity $ 615,162 $ 791,697 KAYDON CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2012 2011 2012 2011 Cash Flows from Operating Activities: Net income $ 8,038 $ 8,680 $ 550 $ 49,332 Adjustments to reconcile net income to net cash from operating activities: Depreciation 3,818 5,124 19,147 20,219 Amortization of intangible 1,014 802 3,599 3,076 assets Amortization of 779 1,079 3,146 4,204 stock awards Stock option compensation 145 317 1,670 1,312 expense Excess tax benefits from 86 (309 ) (568 ) (404 ) stock-based compensation Non-cash postretirement - (133 ) - (275 ) benefits curtailment gain Non-cash impairment - - 42,953 - charge Pension settlement 2,914 - 2,914 - charge Deferred 124 97 717 388 financing fees Contributions to qualified (176 ) (634 ) (8,135 ) (2,586 ) pension plans Net change in receivables, 25,716 8,054 23,094 (17,412 ) inventories and trade payables Net change in other assets and (4,729 ) (3,465 ) (2,205 ) (2,968 ) liabilities Net cash from operating 37,729 19,612 86,882 54,886 activities Cash Flows from Investing Activities: Capital (4,438 ) (3,053 ) (17,414 ) (14,918 ) expenditures Dispositions of property, plant 146 - 2,158 210 and equipment Acquisition of business, net of 300 - (51,267 ) (39,610 ) cash acquired Net cash used in investing (3,992 ) (3,053 ) (66,523 ) (54,318 ) activities Cash Flows from Financing Activities: Proceeds from long-term 2,000 - 202,000 - borrowings Repayments of long-term (21,874 ) - (25,623 ) - borrowings Debt issuance - - (1,357 ) - costs Cash dividends (12,554 ) (6,430 ) (367,851 ) (25,082 ) paid Purchase of - (3,965 ) (1,199 ) (38,684 ) treasury stock Excess tax benefits from (86 ) 309 568 404 stock-based compensation Proceeds from exercise of - - 134 39 stock options Net cash used in financing (32,514 ) (10,086 ) (193,328 ) (63,323 ) activities Effect of exchange rate changes on 324 (347 ) 1,311 1,321 cash and cash equivalents Net increase (decrease) in cash 1,547 6,126 (171,658 ) (61,434 ) and cash equivalents Cash and cash equivalents - 52,009 219,088 225,214 286,648 Beginning of period Cash and cash equivalents - End $ 53,556 $ 225,214 $ 53,556 $ 225,214 of period KAYDON CORPORATION REPORTABLE SEGMENT INFORMATION (In thousands) Three Months Ended Twelve Months Ended December 31, December 31, December December 31, 31, Net sales 2012 2011 2012 2011 Friction Control $ 53,918 $ 58,495 $ 257,955 $ 255,025 Products Velocity Control 27,852 20,436 106,504 89,766 Products Other Industrial 28,746 29,182 110,745 115,329 Products Total consolidated $ 110,516 $ 108,113 $ 475,204 $ 460,120 net sales Three Months Ended Twelve Months Ended December 31, December 31, December December 31, 31, Operating 2012 2011 2012 2011 income Friction Control $ 7,056 $ 4,902 $ (11,485 ) $ 37,382 Products Velocity Control 4,502 3,439 22,683 21,199 Products Other Industrial 4,090 3,839 11,706 13,708 Products Total segment operating 15,648 12,180 22,904 72,289 income Items not allocated to segment (3,850 ) (234 ) (7,792 ) (2,053 ) operating income Interest (997 ) (95 ) (3,135 ) (388 ) expense Interest 89 114 327 491 income Income before $ 10,890 $ 11,965 $ 12,304 $ 70,339 taxes The Company has two reporting segments: Friction Control Products and Velocity Control Products. The Company’s remaining operating segments are combined and disclosed as "Other Industrial Products." Kaydon Corporation Reconciliation of Non-GAAP Measures (In thousands) Three Months Ended Twelve Months Ended December December December December 31, 31, 31, 31, Free cash flow, as 2012 2011 2012 2011 defined (non-GAAP) Net cash from operating $ 37,729 $ 19,612 $ 86,882 $ 54,886 activities (GAAP) Capital expenditures, net (4,292 ) (3,053 ) (15,256 ) (14,708 ) of dispositions Free cash flow, as $ 33,437 $ 16,559 $ 71,626 $ 40,178 defined (non-GAAP) Kaydon's management believes free cash flow, as defined above and a non-GAAP measure, is an important indicator of the Company's ability to generate excess cash above levels required for capital investment to support future growth. However, it should be viewed as supplemental data, rather than as a substitute or alternative to the comparable GAAP measure. Three Months Ended Twelve Months Ended December December December December 31, 31, 31, 31, 2012 2011 2012 2011 Adjusted EBITDA, as defined (non-GAAP) Net income (GAAP) $ 8,038 $ 8,680 $ 550 $ 49,332 Net interest 908 (19 ) 2,808 (103 ) (income)/expense Provision for 2,852 3,285 11,754 21,007 income taxes Depreciation and amortization of 4,832 5,926 22,746 23,295 intangible assets Stock-based compensation 924 1,396 4,816 5,516 expense (1) EBITDA, as defined 17,554 19,268 42,674 99,047 (non-GAAP) Arbitration costs - 5,177 4,132 6,217 Impairment and restructuring 294 280 46,588 2,773 related costs (2) Due diligence and purchase accounting 87 198 2,040 1,771 costs Recapitalization 266 - 533 - costs Curtailment gains - (133 ) - (275 ) Amortization of net 1,262 702 4,778 2,800 actuarial loss Pension settlement 2,914 - 2,914 - Adjusted EBITDA, as $ 22,377 $ 25,492 $ 103,659 $ 112,333 defined (non-GAAP) (1) Includes non-cash stock amortization expense and non-cash stock option expense. (2) Includes wind restructuring related impairments and other costs including fixed asset impairments of $43.0 million, inventory impairment of $1.1 million, accounts receivable reserves of $1.3 million, severance costs of $0.4 million, and asset retirement obligations of $0.2 million for the twelve months ended December 31, 2012. Kaydon's management believes EBITDA, as defined above and Adjusted EBITDA, as defined, both non-GAAP measures, are determinants of the Company's capacity to incur additional senior capital to enhance future profit growth and cash flow growth. In addition, EBITDA is widely used by financial analysts and investors, and is utilized in measuring compliance with financial covenants in the Company's credit agreement. Also, EBITDA is a metric used to determine payments under the Company's annual incentive compensation program for senior managers. However, EBITDA, as defined, and Adjusted EBITDA, as defined should be viewed as supplemental data, rather than as substitutes or alternatives to the comparable GAAP measure. Kaydon Corporation Reconciliation of Non-GAAP Measures (continued) (In thousands, except per share data) Three months ended December 31, 2012 Non-operating items, as defined by the Company Wind Due Diligence/ restructuring Restructuring/ Purchase Settlement / and Severance Accounting Recapitalization Curtailment Amortization Adjusted impairment of GAAP charge Arbitration Costs Costs Costs Gains/Losses Actuarial (Non-GAAP) Costs Loss Net Sales $ 110,516 $ - $ - $ - $ - $ - $ - $ - $ 110,516 Gross 39,638 172 - - - - - 831 40,641 profit Gross 35.9 % 0.2 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.8 % 36.8 % margin S, G & A 27,840 97 - 25 87 266 2,914 431 24,020 expenses Impairment - - - - - - - - - charge Operating 11,798 269 - 25 87 266 2,914 1,262 16,621 income Interest, (908 ) - - - - - - - (908 ) net Income before 10,890 269 - 25 87 266 2,914 1,262 15,713 taxes Tax provision 2,852 89 - 7 23 70 763 330 4,134 * Net income 8,038 180 - 18 64 196 2,151 932 11,579 Diluted $ 0.25 $ 0.01 $ - $ 0.00 $ 0.00 $ 0.01 $ 0.07 $ 0.03 $ 0.36 EPS Three months ended December 31, 2011 Non-operating items, as defined by the Company Wind Due Diligence/ restructuring Restructuring/ Purchase Settlement / and Severance Accounting Recapitalization Curtailment Amortization Adjusted impairment of GAAP charge Arbitration Costs Costs Costs Gains/Losses Actuarial (Non-GAAP) Costs Loss Net Sales $ 108,113 $ - $ - $ - $ - $ - $ - $ - $ 108,113 Gross 35,429 - 4,102 - - - - 550 40,081 profit Gross 32.8 % 0.0 % 3.8 % 0.0 % 0.0 % 0.0 % 0.0 % 0.5 % 37.1 % margin S, G & A 23,483 - 1,075 280 198 - (133 ) 152 21,911 Impairment - - - - - - - - - charge Operating 11,946 - 5,177 280 198 - (133 ) 702 18,170 income Interest, 19 - - - - - - - 19 net Income before 11,965 - 5,177 280 198 - (133 ) 702 18,189 taxes Tax provision 3,285 - 1,421 77 54 - (36 ) 193 4,994 * Net income $ 8,680 $ - $ 3,756 $ 203 $ 144 $ - $ (97 ) $ 509 $ 13,195 Diluted $ 0.27 $ - $ 0.12 $ 0.01 $ 0.00 $ - $ (0.00 ) $ 0.02 $ 0.41 EPS Kaydon's management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and Adjusted earnings per share - diluted, provide investors with additional information to assess the Company's financial performance. However, these measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures. * Taxed at effective tax rate for each quarter, except for wind restructuring and impairment charge and arbitration costs. Kaydon Corporation Reconciliation of Non-GAAP Measures (continued) (In thousands, except per share data) Twelve months ended December 31, 2012 Non-operating items, as defined by the Company Wind Due Diligence/ restructuring Restructuring/ Purchase Settlement / and Severance Accounting Recapitalization Curtailment Amortization Adjusted impairment of GAAP charge Arbitration Costs Costs Costs Gains/Losses Actuarial (Non-GAAP) Costs Loss Net Sales $ 475,204 $ - $ - $ - $ - $ - $ - $ - $ 475,204 Gross 158,727 1,507 4,394 - 355 - - 3,325 168,308 profit Gross 33.4 % 0.3 % 0.9 % 0.0 % 0.1 % 0.0 % 0.0 % 0.7 % 35.4 % margin S, G & A 100,662 1,859 (262 ) 269 1,685 1,324 2,914 1,453 91,420 expenses Impairment 42,953 42,953 - - - - - - - charge Operating 15,112 46,319 4,132 269 2,040 1,324 2,914 4,778 76,888 income Interest, (2,808 ) - - - - 247 - - (2,561 ) net Income before 12,304 46,319 4,132 269 2,040 1,571 2,914 4,778 74,327 taxes Tax provision 11,754 4,428 1,497 78 597 448 763 1,333 20,898 * Net income $ 550 $ 41,891 $ 2,635 $ 191 $ 1,443 $ 1,123 $ 2,151 $ 3,445 $ 53,429 Diluted $ 0.02 $ 1.31 $ 0.08 $ 0.01 $ 0.04 $ 0.03 $ 0.07 $ 0.11 $ 1.67 EPS Twelve months ended December 31, 2011 Non-operating items, as defined by the Company Wind Due Diligence/ restructuring Restructuring/ Purchase Settlement / and Severance Accounting Recapitalization Curtailment Amortization Adjusted impairment of GAAP charge Arbitration Costs Costs Costs Gains/Losses Actuarial (Non-GAAP) Costs Loss Net Sales $ 460,120 $ - $ - $ - $ - $ - $ - $ - $ 460,120 Gross 161,077 - 4,102 1,787 252 - - 2,205 169,423 profit Gross 35.0 % 0.0 % 0.9 % 0.4 % 0.1 % 0.0 % 0.0 % 0.5 % 36.8 % margin S, G & A 90,841 - 2,115 986 1,519 - (275 ) 595 85,901 Wind - - - - - - - - - impairment Operating 70,236 - 6,217 2,773 1,771 - (275 ) 2,800 83,522 income Interest, 103 - - - - - - - 103 net Income before 70,339 - 6,217 2,773 1,771 - (275 ) 2,800 83,625 taxes Tax provision 21,007 - 1,735 839 540 - (80 ) 832 24,873 * Net income $ 49,332 $ - $ 4,482 $ 1,934 $ 1,231 $ - $ (195 ) $ 1,968 $ 58,752 Diluted $ 1.52 $ 0.00 $ 0.14 $ 0.06 $ 0.04 $ 0.00 ($0.01 ) $ 0.06 $ 1.81 EPS Kaydon's management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and Adjusted earnings per share - diluted, provide investors with additional information to assess the Company's financial performance. However, these measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures. * Taxed at effective tax rate for each quarter, except for wind restructuring and impairment charge and arbitration costs. Contact: Kaydon Corporation Timothy J. Heasley Senior Vice President & Chief Financial Officer (734) 680-2018 READ IT ON THE WEB http://www.kaydon.com
Kaydon Corporation Reports Fourth Quarter and Full Year 2012 Results
Press spacebar to pause and continue. Press esc to stop.