We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Schweitzer Mauduit International Inc | NYSE:SWM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 23.41 | 0 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
|
For the quarterly period ended September 30, 2017
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
|
For the transition period from __________________to __________________
|
Delaware
|
62-1612879
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
100 North Point Center East, Suite 600
Alpharetta, Georgia
|
30022
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
|
Page
|
|
|
Part I. - Financial Information
|
|
Item 1.
|
|
||
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 3.
|
|
||
|
|
|
|
Item 4.
|
|
||
|
|
Part II. - Other Information
|
|
Item 1.
|
|
||
|
|
|
|
Item 1A.
|
|
||
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 3.
|
|
||
|
|
|
|
Item 4.
|
|
||
|
|
|
|
Item 5.
|
|
||
|
|
|
|
Item 6.
|
|
||
|
|
||
|
|
||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Net sales
|
$
|
257.8
|
|
|
$
|
209.3
|
|
|
$
|
746.4
|
|
|
$
|
641.2
|
|
Cost of products sold
|
182.0
|
|
|
146.2
|
|
|
530.9
|
|
|
447.7
|
|
||||
Gross profit
|
75.8
|
|
|
63.1
|
|
|
215.5
|
|
|
193.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling expense
|
8.1
|
|
|
6.0
|
|
|
24.6
|
|
|
18.8
|
|
||||
Research expense
|
3.9
|
|
|
4.2
|
|
|
12.9
|
|
|
12.9
|
|
||||
General expense
|
23.8
|
|
|
20.8
|
|
|
69.2
|
|
|
57.9
|
|
||||
Total nonmanufacturing expenses
|
35.8
|
|
|
31.0
|
|
|
106.7
|
|
|
89.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Restructuring and impairment expense
|
1.5
|
|
|
1.3
|
|
|
4.2
|
|
|
4.0
|
|
||||
Operating profit
|
38.5
|
|
|
30.8
|
|
|
104.6
|
|
|
99.9
|
|
||||
Interest expense
|
7.4
|
|
|
3.9
|
|
|
20.0
|
|
|
12.6
|
|
||||
Other income, net
|
4.1
|
|
|
0.7
|
|
|
3.2
|
|
|
4.0
|
|
||||
Income from continuing operations before income taxes and income from equity affiliates
|
35.2
|
|
|
27.6
|
|
|
87.8
|
|
|
91.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes
|
9.5
|
|
|
10.7
|
|
|
26.5
|
|
|
27.9
|
|
||||
Income from equity affiliates, net of
income taxes
|
—
|
|
|
1.8
|
|
|
0.4
|
|
|
2.4
|
|
||||
Income from continuing operations
|
25.7
|
|
|
18.7
|
|
|
61.7
|
|
|
65.8
|
|
||||
Income from discontinued operations
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Net income
|
$
|
25.8
|
|
|
$
|
18.7
|
|
|
$
|
61.8
|
|
|
$
|
65.8
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic:
|
|
|
|
|
|
|
|
|
|
||||||
Income per share from continuing operations
|
$
|
0.84
|
|
|
$
|
0.62
|
|
|
$
|
2.02
|
|
|
$
|
2.16
|
|
Income (loss) per share from discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income per share – basic
|
$
|
0.84
|
|
|
$
|
0.62
|
|
|
$
|
2.02
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income per share from continuing operations
|
$
|
0.84
|
|
|
$
|
0.61
|
|
|
$
|
2.01
|
|
|
$
|
2.15
|
|
Income (loss) per share from discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income per share – diluted
|
$
|
0.84
|
|
|
$
|
0.61
|
|
|
$
|
2.01
|
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Basic
|
30,422,800
|
|
|
30,316,400
|
|
|
30,400,400
|
|
|
30,308,200
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted
|
30,569,500
|
|
|
30,458,800
|
|
|
30,534,700
|
|
|
30,443,100
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Net income
|
$
|
25.8
|
|
|
$
|
18.7
|
|
|
$
|
61.8
|
|
|
$
|
65.8
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
11.4
|
|
|
0.2
|
|
|
37.1
|
|
|
5.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Unrealized (losses) gains on derivative instruments
|
(2.8
|
)
|
|
(0.3
|
)
|
|
(5.4
|
)
|
|
11.7
|
|
||||
Less: Reclassification adjustment for losses on derivative instruments included in net income
|
0.9
|
|
|
0.6
|
|
|
0.5
|
|
|
6.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss from postretirement benefit plans
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
||||
Less: Reclassification adjustment for amortization of postretirement benefit plans' costs included in net periodic benefit cost
|
0.2
|
|
|
1.0
|
|
|
2.4
|
|
|
2.1
|
|
||||
Other comprehensive income
|
9.4
|
|
|
1.5
|
|
|
34.3
|
|
|
25.3
|
|
||||
Comprehensive income
|
$
|
35.2
|
|
|
$
|
20.2
|
|
|
$
|
96.1
|
|
|
$
|
91.1
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
100.6
|
|
|
$
|
107.4
|
|
Accounts receivable, net
|
163.2
|
|
|
115.1
|
|
||
Inventories
|
143.9
|
|
|
119.4
|
|
||
Income taxes receivable
|
2.9
|
|
|
—
|
|
||
Assets held for sale
|
16.0
|
|
|
17.3
|
|
||
Other current assets
|
6.9
|
|
|
5.1
|
|
||
Total current assets
|
433.5
|
|
|
364.3
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
359.8
|
|
|
307.4
|
|
||
Deferred income tax benefits
|
2.3
|
|
|
3.7
|
|
||
Investment in equity affiliates
|
65.0
|
|
|
63.8
|
|
||
Goodwill
|
340.1
|
|
|
229.5
|
|
||
Intangible assets
|
301.1
|
|
|
177.5
|
|
||
Other assets
|
30.2
|
|
|
27.5
|
|
||
Total assets
|
$
|
1,532.0
|
|
|
$
|
1,173.7
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Current debt
|
$
|
3.5
|
|
|
$
|
3.0
|
|
Accounts payable
|
56.9
|
|
|
50.3
|
|
||
Income taxes payable
|
1.9
|
|
|
5.3
|
|
||
Accrued expenses
|
79.2
|
|
|
77.2
|
|
||
Total current liabilities
|
141.5
|
|
|
135.8
|
|
||
|
|
|
|
||||
Long-term debt
|
690.5
|
|
|
437.4
|
|
||
Pension and other postretirement benefits
|
35.5
|
|
|
33.1
|
|
||
Deferred income tax liabilities
|
40.3
|
|
|
29.8
|
|
||
Other liabilities
|
55.1
|
|
|
29.3
|
|
||
Total liabilities
|
962.9
|
|
|
665.4
|
|
||
Stockholders’ equity:
|
|
|
|
|
|
||
Preferred stock, $0.10 par value; 10,000,000 shares authorized; none issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.10 par value; 100,000,000 shares authorized; 30,710,443 and 30,544,494 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
|
3.1
|
|
|
3.1
|
|
||
Additional paid-in-capital
|
63.7
|
|
|
59.2
|
|
||
Retained earnings
|
607.3
|
|
|
585.3
|
|
||
Accumulated other comprehensive loss, net of tax
|
(105.0
|
)
|
|
(139.3
|
)
|
||
Total stockholders’ equity
|
569.1
|
|
|
508.3
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,532.0
|
|
|
$
|
1,173.7
|
|
|
Common Stock Issued
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Shares
|
|
Amount
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
|||||||||||
Balance, December 31, 2015
|
30,474,149
|
|
|
$
|
3.0
|
|
|
$
|
53.7
|
|
|
$
|
552.6
|
|
|
$
|
(141.4
|
)
|
|
$
|
467.9
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
65.8
|
|
|
—
|
|
|
65.8
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|
25.3
|
|
|||||
Dividends declared ($1.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(36.6
|
)
|
|
—
|
|
|
(36.6
|
)
|
|||||
Restricted stock issuances, net
|
94,576
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Stock-based employee compensation expense
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|||||
Excess tax deficit of stock-based employee compensation
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Stock issued to directors as compensation
|
5,031
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Purchases and retirement of common stock
|
(19,539
|
)
|
|
—
|
|
|
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|||||
Balance, September 30, 2016
|
30,554,217
|
|
|
$
|
3.1
|
|
|
$
|
57.2
|
|
|
$
|
581.2
|
|
|
$
|
(116.1
|
)
|
|
$
|
525.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2016
|
30,544,494
|
|
|
$
|
3.1
|
|
|
$
|
59.2
|
|
|
$
|
585.3
|
|
|
$
|
(139.3
|
)
|
|
$
|
508.3
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
61.8
|
|
|
—
|
|
|
61.8
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.3
|
|
|
34.3
|
|
|||||
Dividends declared ($1.26 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(38.7
|
)
|
|
—
|
|
|
(38.7
|
)
|
|||||
Restricted stock issuances, net
|
186,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based employee compensation expense
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|||||
Stock issued to directors as compensation
|
4,352
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Purchases and retirement of common stock
|
(25,176
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|||||
Balance, September 30, 2017
|
30,710,443
|
|
|
$
|
3.1
|
|
|
$
|
63.7
|
|
|
$
|
607.3
|
|
|
$
|
(105.0
|
)
|
|
$
|
569.1
|
|
|
Nine Months Ended
|
||||||
|
September 30,
2017 |
|
September 30,
2016 |
||||
Operating
|
|
|
|
||||
Net income
|
$
|
61.8
|
|
|
$
|
65.8
|
|
Less: Income from discontinued operations
|
0.1
|
|
|
—
|
|
||
Income from continuing operations
|
61.7
|
|
|
65.8
|
|
||
Non-cash items included in net income:
|
|
|
|
||||
Depreciation and amortization
|
46.7
|
|
|
33.3
|
|
||
Restructuring-related impairment
|
0.8
|
|
|
0.5
|
|
||
Deferred income tax provision
|
2.4
|
|
|
(3.3
|
)
|
||
Pension and other postretirement benefits
|
2.5
|
|
|
2.7
|
|
||
Stock-based compensation
|
4.5
|
|
|
3.7
|
|
||
(Income) loss from equity affiliates
|
(0.4
|
)
|
|
(2.4
|
)
|
||
Gain on sale of intangible assets
|
—
|
|
|
(1.8
|
)
|
||
Gain on sale of assets
|
(4.8
|
)
|
|
—
|
|
||
Excess tax expense of stock-based awards
|
—
|
|
|
0.2
|
|
||
Cash dividends received from equity affiliates
|
1.8
|
|
|
—
|
|
||
Other items
|
(0.2
|
)
|
|
(1.2
|
)
|
||
Changes in operating working capital, net of assets acquired:
|
|
|
|
||||
Accounts receivable
|
(16.7
|
)
|
|
(14.7
|
)
|
||
Inventories
|
1.4
|
|
|
4.9
|
|
||
Prepaid expenses
|
(0.6
|
)
|
|
(1.0
|
)
|
||
Accounts payable
|
1.2
|
|
|
(2.5
|
)
|
||
Accrued expenses
|
(0.2
|
)
|
|
(7.2
|
)
|
||
Accrued income taxes
|
(6.9
|
)
|
|
6.1
|
|
||
Net changes in operating working capital
|
(21.8
|
)
|
|
(14.4
|
)
|
||
Net cash provided by (used in) operating activities of:
|
|
|
|
||||
- Continuing operations
|
93.2
|
|
|
83.1
|
|
||
- Discontinued operations
|
0.1
|
|
|
(0.1
|
)
|
||
Net cash provided by operations
|
93.3
|
|
|
83.0
|
|
||
Investing
|
|
|
|
||||
Capital spending
|
(27.5
|
)
|
|
(17.5
|
)
|
||
Capitalized software costs
|
(2.6
|
)
|
|
(1.7
|
)
|
||
Acquisitions, net of cash acquired
|
(291.7
|
)
|
|
—
|
|
||
Proceeds from sale of assets
|
7.0
|
|
|
—
|
|
||
Other investing
|
5.6
|
|
|
4.2
|
|
||
Net cash used in investing
|
(309.2
|
)
|
|
(15.0
|
)
|
|
Nine Months Ended
|
||||||
|
September 30,
2017 |
|
September 30,
2016 |
||||
Financing
|
|
|
|
||||
Cash dividends paid to SWM stockholders
|
(38.7
|
)
|
|
(36.6
|
)
|
||
Proceeds from issuances of long-term debt
|
440.4
|
|
|
35.6
|
|
||
Payments on long-term debt
|
(196.2
|
)
|
|
(167.2
|
)
|
||
Purchases of common stock
|
(1.1
|
)
|
|
(0.6
|
)
|
||
Payments for debt issuance costs
|
(0.6
|
)
|
|
—
|
|
||
Excess tax expense of stock-based awards
|
—
|
|
|
(0.2
|
)
|
||
Net cash provided by (used in) financing
|
203.8
|
|
|
(169.0
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
5.3
|
|
|
4.0
|
|
||
Decrease in cash and cash equivalents
|
(6.8
|
)
|
|
(97.0
|
)
|
||
Cash and cash equivalents at beginning of period
|
107.4
|
|
|
186.5
|
|
||
Cash and cash equivalents at end of period
|
$
|
100.6
|
|
|
$
|
89.5
|
|
|
|
|
|
||||
Supplemental Cash Flow Disclosures
|
|
|
|
||||
Cash paid for interest
|
$
|
15.2
|
|
|
$
|
10.5
|
|
Cash paid for taxes, net
|
$
|
30.8
|
|
|
$
|
24.4
|
|
Change in capital spending in accounts payable and accrued liabilities
|
$
|
4.4
|
|
|
$
|
1.3
|
|
Deferred contingent business acquisition consideration
|
$
|
8.6
|
|
|
$
|
—
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Accumulated pension and OPEB liability adjustments, net of income tax benefit of $16.0 million and $17.6 million at September 30, 2017 and December 31, 2016, respectively
|
$
|
(34.4
|
)
|
|
$
|
(36.5
|
)
|
Accumulated unrealized loss on derivative instruments, net of income tax benefit of $5.2 million and $3.0 million at September 30, 2017 and December 31, 2016, respectively
|
(6.8
|
)
|
|
(1.9
|
)
|
||
Accumulated unrealized foreign currency translation adjustments
|
(63.8
|
)
|
|
(100.9
|
)
|
||
Accumulated other comprehensive loss
|
$
|
(105.0
|
)
|
|
$
|
(139.3
|
)
|
|
Three Months Ended
|
||||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||||
|
Pre-tax
|
|
Tax
|
|
Net of
Tax
|
|
Pre-tax
|
|
Tax
|
|
Net of
Tax
|
||||||||||||
Unrealized gain (loss) on pension and OPEB liability adjustments
|
$
|
1.1
|
|
|
$
|
(1.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
1.2
|
|
|
$
|
(0.2
|
)
|
|
$
|
1.0
|
|
Unrealized (loss) gain on derivative instruments
|
(2.1
|
)
|
|
0.2
|
|
|
(1.9
|
)
|
|
2.0
|
|
|
(1.7
|
)
|
|
0.3
|
|
||||||
Unrealized gain (loss) on foreign currency translation
|
11.4
|
|
|
—
|
|
|
11.4
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||||
Total
|
$
|
10.4
|
|
|
$
|
(1.0
|
)
|
|
$
|
9.4
|
|
|
$
|
3.4
|
|
|
$
|
(1.9
|
)
|
|
$
|
1.5
|
|
|
Nine Months Ended
|
||||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||||
|
Pre-tax
|
|
Tax
|
|
Net of
Tax |
|
Pre-tax
|
|
Tax
|
|
Net of
Tax |
||||||||||||
Unrealized gain (loss) on pension and OPEB liability adjustments
|
$
|
3.7
|
|
|
$
|
(1.6
|
)
|
|
$
|
2.1
|
|
|
$
|
3.9
|
|
|
$
|
(1.8
|
)
|
|
$
|
2.1
|
|
Unrealized (loss) gain on derivative instruments
|
(7.1
|
)
|
|
2.2
|
|
|
(4.9
|
)
|
|
15.7
|
|
|
2.2
|
|
|
17.9
|
|
||||||
Unrealized gain on foreign currency translation
|
37.1
|
|
|
—
|
|
|
37.1
|
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
||||||
Total
|
$
|
33.7
|
|
|
$
|
0.6
|
|
|
$
|
34.3
|
|
|
$
|
24.9
|
|
|
$
|
0.4
|
|
|
$
|
25.3
|
|
|
Preliminary Fair Value as of January 20, 2017
|
||
Cash and cash equivalents
|
$
|
3.3
|
|
Accounts receivable
|
15.4
|
|
|
Inventory
|
20.6
|
|
|
Other current assets
|
1.1
|
|
|
Property, plant and equipment
|
31.7
|
|
|
Identifiable intangible assets
|
134.4
|
|
|
Total assets
|
206.5
|
|
|
|
|
||
Accounts payable and accrued expenses
|
8.2
|
|
|
Deferred tax liabilities
|
0.9
|
|
|
|
|
||
Net identifiable assets acquired
|
197.4
|
|
|
|
|
||
Goodwill
|
106.2
|
|
|
|
|
||
Fair value of consideration transferred
|
$
|
303.6
|
|
|
Preliminary Fair Value as of January 20, 2017
|
|
Weighted-Average Amortization Period (Years)
|
||
Amortizable intangible assets:
|
|
|
|
||
Customer relationships
|
$
|
108.0
|
|
|
15.0
|
Developed technology
|
18.1
|
|
|
17.2
|
|
Non-competition agreements
|
1.2
|
|
|
7.2
|
|
Total amortizable intangible assets
|
127.3
|
|
|
|
|
Indefinite-lived intangible assets:
|
|
|
|
||
Trade names
|
7.1
|
|
|
Indefinite
|
|
Total
|
$
|
134.4
|
|
|
|
|
|
Net Sales
|
|
Income from Continuing Operations
|
||||
July 1, 2017 - September 30, 2017
|
|
$
|
40.7
|
|
|
$
|
4.7
|
|
January 20, 2017 - September 30, 2017
|
|
106.2
|
|
|
7.9
|
|
|
|
Net Sales
|
|
Income from Continuing Operations
|
||||
2016 Supplemental Pro Forma from July 1, 2016 - September 30, 2016
|
|
$
|
248.1
|
|
|
$
|
20.7
|
|
2016 Supplemental Pro Forma from January 1, 2016 - September 30, 2016
|
|
751.0
|
|
|
71.0
|
|
||
2017 Supplemental Pro Forma from January 1, 2017 - September 30, 2017
|
|
$
|
754.1
|
|
|
$
|
58.4
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Assets of discontinued operations:
|
|
|
|
||||
Current assets
|
$
|
1.0
|
|
|
$
|
1.0
|
|
Other assets
|
2.4
|
|
|
2.5
|
|
||
|
|
|
|
||||
Liabilities of discontinued operations:
|
|
|
|
|
|||
Current liabilities
|
0.2
|
|
|
0.1
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2017 |
|
September 30,
2016 |
|
September 30,
2017 |
|
September 30,
2016 |
||||||||
Numerator (basic and diluted):
|
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
25.8
|
|
|
$
|
18.7
|
|
|
$
|
61.8
|
|
|
$
|
65.8
|
|
Less: Dividends paid to participating securities
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
||||
Less: Undistributed earnings available to participating securities
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||
Undistributed and distributed earnings available to common stockholders
|
$
|
25.6
|
|
|
$
|
18.6
|
|
|
$
|
61.3
|
|
|
$
|
65.4
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
|
||||||
Average number of common shares outstanding
|
30,422.8
|
|
|
30,316.4
|
|
|
30,400.4
|
|
|
30,308.2
|
|
||||
Effect of dilutive stock-based compensation
|
146.7
|
|
|
142.4
|
|
|
134.3
|
|
|
134.9
|
|
||||
Average number of common and potential common shares outstanding
|
30,569.5
|
|
|
30,458.8
|
|
|
30,534.7
|
|
|
30,443.1
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Raw materials
|
$
|
53.7
|
|
|
$
|
40.9
|
|
Work in process
|
23.0
|
|
|
23.9
|
|
||
Finished goods
|
58.1
|
|
|
44.9
|
|
||
Supplies and other
|
9.1
|
|
|
9.7
|
|
||
Total
|
$
|
143.9
|
|
|
$
|
119.4
|
|
|
Advanced Materials & Structures
|
|
Engineered Papers
|
|
Total
|
||||||
Goodwill as of December 31, 2016
|
$
|
224.8
|
|
|
$
|
4.7
|
|
|
$
|
229.5
|
|
Goodwill acquired during the period
|
106.2
|
|
|
—
|
|
|
106.2
|
|
|||
Foreign currency translation adjustments
|
4.0
|
|
|
0.4
|
|
|
4.4
|
|
|||
Goodwill as of September 30, 2017
|
$
|
335.0
|
|
|
$
|
5.1
|
|
|
$
|
340.1
|
|
|
September 30, 2017
|
||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Accumulated Impairments
|
|
Accumulated Foreign Exchange
|
|
Net
Carrying
Amount
|
||||||||||
Amortized Intangible Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Advanced Materials & Structures
|
|||||||||||||||||||
Customer relationships
|
$
|
276.3
|
|
|
$
|
28.5
|
|
|
$
|
—
|
|
|
$
|
(1.2
|
)
|
|
$
|
249.0
|
|
Developed technology
|
34.0
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
28.6
|
|
|||||
Customer contracts
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Trade names
|
21.8
|
|
|
0.8
|
|
|
20.7
|
|
|
0.3
|
|
|
—
|
|
|||||
Non-compete agreements
|
2.9
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|||||
Patents
|
1.5
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Total
|
$
|
337.4
|
|
|
$
|
36.8
|
|
|
$
|
20.7
|
|
|
$
|
(0.9
|
)
|
|
$
|
280.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unamortized Intangible Assets (Advanced Materials & Structures)
|
|||||||||||||||||||
Trade names
|
$
|
20.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
20.3
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Accumulated Impairments
|
|
Accumulated Foreign Exchange
|
|
Net
Carrying
Amount
|
||||||||||
Amortized Intangible Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Advanced Materials & Structures
|
|||||||||||||||||||
Customer relationships
|
$
|
168.3
|
|
|
$
|
15.9
|
|
|
$
|
—
|
|
|
$
|
3.1
|
|
|
$
|
149.3
|
|
Developed technology
|
15.9
|
|
|
3.6
|
|
|
—
|
|
|
0.4
|
|
|
11.9
|
|
|||||
Customer contracts
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Trade names
|
21.8
|
|
|
—
|
|
|
20.7
|
|
|
0.3
|
|
|
0.8
|
|
|||||
Non-compete agreements
|
1.7
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|||||
Patents
|
1.5
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Engineered Papers
|
|||||||||||||||||||
Customer relationships
|
10.0
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
220.1
|
|
|
$
|
31.1
|
|
|
$
|
20.7
|
|
|
$
|
3.8
|
|
|
$
|
164.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unamortized Intangible Assets (Advanced Materials & Structures)
|
|||||||||||||||||||
Trade names
|
$
|
12.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
13.0
|
|
|
Nine Months Ended
|
|
Year Ended
|
||||
|
September 30,
2017 |
|
December 31,
2016 |
||||
Balance at beginning of year
|
$
|
4.3
|
|
|
$
|
7.7
|
|
Accruals for announced programs
|
3.4
|
|
|
4.3
|
|
||
Cash payments
|
(4.8
|
)
|
|
(8.4
|
)
|
||
Exchange rate impacts
|
0.4
|
|
|
0.7
|
|
||
Balance at end of period
|
$
|
3.3
|
|
|
$
|
4.3
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Term Loan A-1
|
$
|
60.0
|
|
|
$
|
60.0
|
|
Term Loan A-2
|
245.0
|
|
|
246.9
|
|
||
Revolving Credit Agreement - U.S. dollar borrowings
|
344.5
|
|
|
131.0
|
|
||
Revolving Credit Agreement - euro borrowings
|
37.8
|
|
|
—
|
|
||
French Employee Profit Sharing
|
9.0
|
|
|
9.5
|
|
||
Long Term Capital Lease Obligations
|
3.9
|
|
|
—
|
|
||
Less: Debt issuance costs
|
(6.2
|
)
|
|
(7.0
|
)
|
||
Total Debt
|
694.0
|
|
|
440.4
|
|
||
Less: Current debt
|
(3.5
|
)
|
|
(3.0
|
)
|
||
Long-Term Debt
|
$
|
690.5
|
|
|
$
|
437.4
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
Accounts receivable, net
|
|
$
|
3.9
|
|
|
Accrued expenses
|
|
$
|
—
|
|
Foreign exchange contracts
|
Other assets
|
|
0.8
|
|
|
Other liabilities
|
|
11.8
|
|
||
Interest rate contracts
|
Other assets
|
|
—
|
|
|
Other liabilities
|
|
0.1
|
|
||
Total derivatives designated as hedges
|
|
|
$
|
4.7
|
|
|
|
|
$
|
11.9
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
Accounts receivable, net
|
|
$
|
1.0
|
|
|
Accrued expenses
|
|
$
|
1.8
|
|
Foreign exchange contracts
|
Other assets
|
|
1.9
|
|
|
Other liabilities
|
|
—
|
|
||
Interest rate contracts
|
Other assets
|
|
—
|
|
|
Other liabilities
|
|
0.4
|
|
||
Total derivatives designated as hedges
|
|
|
$
|
2.9
|
|
|
|
|
$
|
2.2
|
|
Derivatives Designated as Cash Flow Hedging Relationships
|
|
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax
|
|
Gain (Loss) Reclassified
from AOCI
|
||||||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Foreign exchange contracts
|
|
$
|
(2.8
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
12.3
|
|
|
$
|
(0.6
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
0.5
|
|
|
$
|
(5.7
|
)
|
Interest rate contracts
|
|
—
|
|
|
0.1
|
|
|
(0.8
|
)
|
|
(0.6
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
(0.5
|
)
|
||||||||
Total
|
|
$
|
(2.8
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
11.7
|
|
|
$
|
(0.9
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(6.2
|
)
|
Derivatives Not Designated as Cash Flow Hedging Instruments
|
|
Amount of Gain Recognized in Other Income / Expense
|
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Foreign exchange contracts
|
|
$
|
4.6
|
|
|
$
|
0.8
|
|
|
$
|
3.2
|
|
|
$
|
1.2
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
U.S. Pension Benefits
|
|
French Pension Benefits
|
|
U.S. OPEB Benefits
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
1.2
|
|
|
1.3
|
|
|
0.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
(1.6
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortizations and other
|
0.6
|
|
|
0.8
|
|
|
0.3
|
|
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Net periodic benefit cost
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
U.S. Pension Benefits
|
|
French Pension Benefits
|
|
U.S. OPEB Benefits
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
$
|
0.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
3.6
|
|
|
3.9
|
|
|
0.3
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
(4.8
|
)
|
|
(5.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortizations and other
|
2.4
|
|
|
2.8
|
|
|
0.9
|
|
|
0.8
|
|
|
0.2
|
|
|
0.2
|
|
||||||
Net periodic benefit cost
|
$
|
1.2
|
|
|
$
|
1.6
|
|
|
$
|
1.9
|
|
|
$
|
1.8
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
($ in millions)
|
Net Sales
|
||||||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||||
Advanced Materials & Structures
|
$
|
116.2
|
|
|
45.1
|
%
|
|
$
|
72.5
|
|
|
34.6
|
%
|
|
$
|
334.0
|
|
|
44.7
|
%
|
|
$
|
215.5
|
|
|
33.6
|
%
|
Engineered Papers
|
141.6
|
|
|
54.9
|
|
|
136.8
|
|
|
65.4
|
|
|
412.4
|
|
|
55.3
|
|
|
425.7
|
|
|
66.4
|
|
||||
Total Consolidated
|
$
|
257.8
|
|
|
100.0
|
%
|
|
$
|
209.3
|
|
|
100.0
|
%
|
|
$
|
746.4
|
|
|
100.0
|
%
|
|
$
|
641.2
|
|
|
100.0
|
%
|
($ in millions)
|
Operating Profit
|
||||||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||||
Advanced Materials & Structures
|
$
|
15.4
|
|
|
40.0
|
%
|
|
$
|
8.7
|
|
|
28.2
|
%
|
|
$
|
40.9
|
|
|
39.1
|
%
|
|
$
|
22.8
|
|
|
22.8
|
%
|
Engineered Papers
|
32.3
|
|
|
83.9
|
|
|
32.0
|
|
|
103.9
|
|
|
90.0
|
|
|
86.0
|
|
|
103.4
|
|
|
103.5
|
|
||||
Unallocated
|
(9.2
|
)
|
|
(23.9
|
)
|
|
(9.9
|
)
|
|
(32.1
|
)
|
|
(26.3
|
)
|
|
(25.1
|
)
|
|
(26.3
|
)
|
|
(26.3
|
)
|
||||
Total Consolidated
|
$
|
38.5
|
|
|
100.0
|
%
|
|
$
|
30.8
|
|
|
100.0
|
%
|
|
$
|
104.6
|
|
|
100.0
|
%
|
|
$
|
99.9
|
|
|
100.0
|
%
|
($ in millions)
|
Segment Assets
|
||||||
|
September 30,
2017 |
|
December 31,
2016 |
||||
Advanced Materials & Structures
|
$
|
918.4
|
|
|
$
|
569.3
|
|
Engineered Papers
|
523.0
|
|
|
505.1
|
|
||
Unallocated
|
90.6
|
|
|
99.3
|
|
||
Total Consolidated
|
$
|
1,532.0
|
|
|
$
|
1,173.7
|
|
($ in millions, except per share amounts)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||||||||||||||
Net sales
|
$
|
257.8
|
|
|
100.0
|
%
|
|
$
|
209.3
|
|
|
100.0
|
%
|
|
$
|
746.4
|
|
|
100.0
|
%
|
|
$
|
641.2
|
|
|
100.0
|
%
|
Gross profit
|
75.8
|
|
|
29.4
|
|
|
63.1
|
|
|
30.1
|
|
|
215.5
|
|
|
28.9
|
|
|
193.5
|
|
|
30.2
|
|
||||
Restructuring & impairment expense
|
1.5
|
|
|
0.6
|
|
|
1.3
|
|
|
0.6
|
|
|
4.2
|
|
|
0.6
|
|
|
4.0
|
|
|
0.6
|
|
||||
Operating profit
|
38.5
|
|
|
14.9
|
|
|
30.8
|
|
|
14.7
|
|
|
104.6
|
|
|
14.0
|
|
|
99.9
|
|
|
15.6
|
|
||||
Interest expense
|
7.4
|
|
|
2.9
|
|
|
3.9
|
|
|
1.9
|
|
|
20.0
|
|
|
2.7
|
|
|
12.6
|
|
|
2.0
|
|
||||
Income from continuing operations
|
25.7
|
|
|
10.0
|
|
|
18.7
|
|
|
8.9
|
|
|
61.7
|
|
|
8.3
|
|
|
65.8
|
|
|
10.3
|
|
||||
Loss from discontinued operations
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
$
|
25.8
|
|
|
10.0
|
%
|
|
$
|
18.7
|
|
|
8.9
|
%
|
|
$
|
61.8
|
|
|
8.3
|
%
|
|
$
|
65.8
|
|
|
10.3
|
%
|
Diluted earnings per share from continuing operations
|
$
|
0.84
|
|
|
|
|
|
$
|
0.61
|
|
|
|
|
|
$
|
2.01
|
|
|
|
|
$
|
2.15
|
|
|
|
||
Diluted earnings per share
|
$
|
0.84
|
|
|
|
|
|
$
|
0.61
|
|
|
|
|
|
$
|
2.01
|
|
|
|
|
$
|
2.15
|
|
|
|
||
Cash provided by operations
|
$
|
48.4
|
|
|
|
|
|
$
|
30.8
|
|
|
|
|
|
$
|
93.3
|
|
|
|
|
$
|
83.0
|
|
|
|
||
Capital spending
|
$
|
8.2
|
|
|
|
|
|
$
|
7.8
|
|
|
|
|
|
$
|
27.5
|
|
|
|
|
$
|
17.5
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
Percent Change
|
|||||||
Advanced Materials & Structures
|
$
|
116.2
|
|
|
$
|
72.5
|
|
|
$
|
43.7
|
|
|
60.3
|
%
|
Engineered Papers
|
141.6
|
|
|
136.8
|
|
|
4.8
|
|
|
3.5
|
|
|||
Total
|
$
|
257.8
|
|
|
$
|
209.3
|
|
|
$
|
48.5
|
|
|
23.2
|
%
|
|
Amount
|
|
Percent
|
|||
Incremental revenue from acquired companies
|
$
|
40.7
|
|
|
19.5
|
%
|
Changes in volume, product mix and selling prices
|
4.6
|
|
|
2.2
|
|
|
Changes due to royalties
|
(1.4
|
)
|
|
(0.7
|
)
|
|
Changes due to net foreign currency impacts
|
4.6
|
|
|
2.2
|
|
|
Total
|
$
|
48.5
|
|
|
23.2
|
%
|
|
Three Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Net Sales
|
$
|
257.8
|
|
|
$
|
209.3
|
|
|
$
|
48.5
|
|
|
23.2
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of products sold
|
182.0
|
|
|
146.2
|
|
|
35.8
|
|
|
24.5
|
|
|
70.6
|
|
|
69.9
|
|
|||
Gross Profit
|
$
|
75.8
|
|
|
$
|
63.1
|
|
|
$
|
12.7
|
|
|
20.1
|
%
|
|
29.4
|
%
|
|
30.1
|
%
|
|
Three Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Selling expense
|
$
|
8.1
|
|
|
$
|
6.0
|
|
|
$
|
2.1
|
|
|
35.0
|
%
|
|
3.1
|
%
|
|
2.9
|
%
|
Research expense
|
3.9
|
|
|
4.2
|
|
|
(0.3
|
)
|
|
(7.1
|
)
|
|
1.5
|
|
|
2.0
|
|
|||
General expense
|
23.8
|
|
|
20.8
|
|
|
3.0
|
|
|
14.4
|
|
|
9.3
|
|
|
9.9
|
|
|||
Nonmanufacturing expenses
|
$
|
35.8
|
|
|
$
|
31.0
|
|
|
$
|
4.8
|
|
|
15.5
|
%
|
|
13.9
|
%
|
|
14.8
|
%
|
|
Three Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Advanced Materials & Structures
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
1.2
|
|
|
N/A
|
|
|
1.0
|
%
|
|
—
|
%
|
Engineered Papers
|
0.4
|
|
|
1.3
|
|
|
(0.9
|
)
|
|
(69.2
|
)
|
|
0.3
|
|
|
1.0
|
|
|||
Unallocated expenses
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
N/A
|
|
|
|
|
|
|
|
|||
Total
|
$
|
1.5
|
|
|
$
|
1.3
|
|
|
$
|
0.2
|
|
|
15.4
|
%
|
|
0.6
|
%
|
|
0.6
|
%
|
|
Three Months Ended
|
|
|
|
Percent Change
|
|
Return on Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Advanced Materials & Structures
|
$
|
15.4
|
|
|
$
|
8.7
|
|
|
$
|
6.7
|
|
|
77.0
|
%
|
|
13.3
|
%
|
|
12.0
|
%
|
Engineered Papers
|
32.3
|
|
|
32.0
|
|
|
0.3
|
|
|
0.9
|
|
|
22.8
|
|
|
23.4
|
|
|||
Unallocated expenses
|
(9.2
|
)
|
|
(9.9
|
)
|
|
0.7
|
|
|
7.1
|
|
|
|
|
|
|||||
Total
|
$
|
38.5
|
|
|
$
|
30.8
|
|
|
$
|
7.7
|
|
|
25.0
|
%
|
|
14.9
|
%
|
|
14.7
|
%
|
|
Nine Months Ended
|
|
|
|
|
|||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
Percent Change
|
|||||||
Advanced Materials & Structures
|
$
|
334.0
|
|
|
$
|
215.5
|
|
|
$
|
118.5
|
|
|
55.0
|
%
|
Engineered Papers
|
412.4
|
|
|
425.7
|
|
|
(13.3
|
)
|
|
(3.1
|
)
|
|||
Total
|
$
|
746.4
|
|
|
$
|
641.2
|
|
|
$
|
105.2
|
|
|
16.4
|
%
|
|
Amount
|
|
Percent
|
|||
Incremental revenue from acquired companies
|
$
|
106.2
|
|
|
16.6
|
%
|
Changes in volume, product mix and selling prices
|
0.3
|
|
|
—
|
|
|
Changes due to net foreign currency impacts
|
2.5
|
|
|
0.4
|
|
|
Changes due to royalties
|
(3.8
|
)
|
|
(0.6
|
)
|
|
Total
|
$
|
105.2
|
|
|
16.4
|
%
|
|
Nine Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Net Sales
|
$
|
746.4
|
|
|
$
|
641.2
|
|
|
$
|
105.2
|
|
|
16.4
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of products sold
|
530.9
|
|
|
447.7
|
|
|
83.2
|
|
|
18.6
|
|
|
71.1
|
|
|
69.8
|
|
|||
Gross Profit
|
$
|
215.5
|
|
|
$
|
193.5
|
|
|
$
|
22.0
|
|
|
11.4
|
%
|
|
28.9
|
%
|
|
30.2
|
%
|
|
Nine Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Selling expense
|
$
|
24.6
|
|
|
$
|
18.8
|
|
|
$
|
5.8
|
|
|
30.9
|
%
|
|
3.3
|
%
|
|
2.9
|
%
|
Research expense
|
12.9
|
|
|
12.9
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
2.0
|
|
|||
General expense
|
69.2
|
|
|
57.9
|
|
|
11.3
|
|
|
19.5
|
|
|
9.3
|
|
|
9.0
|
|
|||
Nonmanufacturing expenses
|
$
|
106.7
|
|
|
$
|
89.6
|
|
|
$
|
17.1
|
|
|
19.1
|
%
|
|
14.3
|
%
|
|
13.9
|
%
|
|
Nine Months Ended
|
|
|
|
Percent Change
|
|
Percent of Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Advanced Materials & Structures
|
$
|
2.4
|
|
|
$
|
0.6
|
|
|
$
|
1.8
|
|
|
300.0
|
%
|
|
0.7
|
%
|
|
0.3
|
%
|
Engineered Papers
|
1.7
|
|
|
3.1
|
|
|
(1.4
|
)
|
|
(45.2
|
)
|
|
0.4
|
|
|
0.7
|
|
|||
Unallocated expenses
|
0.1
|
|
|
0.3
|
|
|
(0.2
|
)
|
|
(66.7
|
)
|
|
|
|
|
|||||
Total
|
$
|
4.2
|
|
|
$
|
4.0
|
|
|
$
|
0.2
|
|
|
5.0
|
%
|
|
0.6
|
%
|
|
0.6
|
%
|
|
Nine Months Ended
|
|
|
|
Percent Change
|
|
Return on Net Sales
|
|||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
Change
|
|
|
2017
|
|
2016
|
||||||||||
Advanced Materials & Structures
|
$
|
40.9
|
|
|
$
|
22.8
|
|
|
$
|
18.1
|
|
|
79.4
|
%
|
|
12.2
|
%
|
|
10.6
|
%
|
Engineered Papers
|
90.0
|
|
|
103.4
|
|
|
(13.4
|
)
|
|
(13.0
|
)
|
|
21.8
|
|
|
24.3
|
|
|||
Unallocated expenses
|
(26.3
|
)
|
|
(26.3
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||
Total
|
$
|
104.6
|
|
|
$
|
99.9
|
|
|
$
|
4.7
|
|
|
4.7
|
%
|
|
14.0
|
%
|
|
15.6
|
%
|
•
|
Reinvesting capital in businesses through a disciplined approach to meet global demand for value-adding solutions;
|
•
|
Returning at least one-third of annual free cash flow to stockholders via dividends and/or share repurchase programs; and
|
•
|
Retaining flexibility to execute growth opportunities in current and adjacent industries.
|
Cash Flows from Operating Activities
($ in millions)
|
Nine Months Ended
|
||||||
September 30, 2017
|
|
September 30, 2016
|
|||||
Net Income
|
$
|
61.8
|
|
|
$
|
65.8
|
|
Less: Loss from discontinued operations
|
0.1
|
|
|
—
|
|
||
Income from continuing operations
|
61.7
|
|
|
65.8
|
|
||
Non-cash items included in net income:
|
|
|
|
||||
Depreciation and amortization
|
46.7
|
|
|
33.3
|
|
||
Restructuring-related impairment
|
0.8
|
|
|
0.5
|
|
||
Deferred income tax provision
|
2.4
|
|
|
(3.3
|
)
|
||
Pension and other postretirement benefits
|
2.5
|
|
|
2.7
|
|
||
Stock-based compensation
|
4.5
|
|
|
3.7
|
|
||
(Income) loss from equity affiliates
|
(0.4
|
)
|
|
(2.4
|
)
|
||
Gain on sale of intangible assets
|
—
|
|
|
(1.8
|
)
|
||
Gain on sale of assets
|
(4.8
|
)
|
|
—
|
|
||
Excess tax expense of stock-based awards
|
—
|
|
|
0.2
|
|
||
Cash dividends received from equity affiliates
|
1.8
|
|
|
—
|
|
||
Other items
|
(0.2
|
)
|
|
(1.2
|
)
|
||
Net changes in operating working capital
|
(21.8
|
)
|
|
(14.4
|
)
|
||
Net cash provided by (used in) operating activities of:
|
|
|
|
||||
Continuing operations
|
93.2
|
|
|
83.1
|
|
||
Discontinued operations
|
0.1
|
|
|
(0.1
|
)
|
||
Net cash provided by operations
|
$
|
93.3
|
|
|
$
|
83.0
|
|
Operating Working Capital
($ in millions)
|
Nine Months Ended
|
||||||
September 30, 2017
|
|
September 30, 2016
|
|||||
Changes in operating working capital
|
|
|
|
||||
Accounts receivable
|
$
|
(16.7
|
)
|
|
$
|
(14.7
|
)
|
Inventories
|
1.4
|
|
|
4.9
|
|
||
Prepaid expenses
|
(0.6
|
)
|
|
(1.0
|
)
|
||
Accounts payable
|
1.2
|
|
|
(2.5
|
)
|
||
Accrued expenses
|
(0.2
|
)
|
|
(7.2
|
)
|
||
Accrued income taxes
|
(6.9
|
)
|
|
6.1
|
|
||
Net changes in operating working capital
|
$
|
(21.8
|
)
|
|
$
|
(14.4
|
)
|
Cash Flows from Investing Activities
($ in millions)
|
Nine Months Ended
|
||||||
September 30, 2017
|
|
September 30, 2016
|
|||||
Capital spending
|
$
|
(27.5
|
)
|
|
$
|
(17.5
|
)
|
Capitalized software costs
|
(2.6
|
)
|
|
(1.7
|
)
|
||
Acquisitions, net of cash acquired
|
(291.7
|
)
|
|
—
|
|
||
Proceeds from sale of assets
|
7.0
|
|
|
—
|
|
||
Other
|
5.6
|
|
|
4.2
|
|
||
Cash used for investing
|
$
|
(309.2
|
)
|
|
$
|
(15.0
|
)
|
Cash Flows from Financing Activities
($ in millions)
|
Nine Months Ended
|
||||||
September 30, 2017
|
|
September 30, 2016
|
|||||
Cash dividends paid to SWM stockholders
|
$
|
(38.7
|
)
|
|
$
|
(36.6
|
)
|
Net proceeds (payments) on long-term debt
|
244.2
|
|
|
(131.6
|
)
|
||
Purchases of common stock
|
(1.1
|
)
|
|
(0.6
|
)
|
||
Payments for debt issuance costs
|
(0.6
|
)
|
|
—
|
|
||
Excess tax expense of stock-based awards
|
—
|
|
|
(0.2
|
)
|
||
Cash provided by (used in) financing
|
$
|
203.8
|
|
|
$
|
(169.0
|
)
|
Debt Instruments
($ in millions)
|
Nine Months Ended
|
||||||
September 30, 2017
|
|
September 30, 2016
|
|||||
Proceeds from issuances of long-term debt
|
$
|
440.4
|
|
|
$
|
35.6
|
|
Payments on long-term debt
|
(196.2
|
)
|
|
(167.2
|
)
|
||
Net proceeds from borrowings
|
$
|
244.2
|
|
|
$
|
(131.6
|
)
|
•
|
Changes in sales or production volumes, pricing and/or manufacturing costs of reconstituted tobacco products, cigarette paper (including for LIP cigarettes), filtration-related products due to changing customer demands (including any change by our customers in their tobacco and tobacco-related blends for their cigarettes, their target inventory levels and/or the overall demand for their products), new technologies such as e-cigarettes, inventory adjustments and rebalancings, competition or otherwise;
|
•
|
Changes in the Chinese economy, including relating to the demand for reconstituted tobacco, premium cigarettes and netting;
|
•
|
Risks associated with the implementation of our strategic growth initiatives, including diversification, and the Company's understanding of, and entry into, new industries and technologies;
|
•
|
Changes in the source and intensity of competition in our commercial segments. We operate in highly competitive markets in which alternative supplies and technologies may attract our customers away from our products. In additional, our customers may, in some cases, produce for themselves the components that the Company sells to them for incorporation into their products, thus reducing or eliminating their purchases from us;
|
•
|
Our ability to attract and retain key personnel, due to our prior restructuring actions, the tobacco industry in which we operate or otherwise;
|
•
|
Weather conditions, including potential impacts, if any, from climate change, known and unknown, seasonality factors that affect the demand for virgin tobacco leaf and natural disasters or unusual weather events;
|
•
|
Increases in commodity prices and lack of availability of such commodities, including energy, wood pulp and resins, could impact the sales and profitability of our products;
|
•
|
Adverse changes in the oil, gas, and mining sectors impacting key AMS segment customers;
|
•
|
Increases in operating costs due to inflation or otherwise, such as labor expense, compensation and benefits costs, including costs related to the comprehensive health care reform law enacted in the US in 2010;
|
•
|
Employee retention and labor shortages;
|
•
|
Changes in employment, wage and hour laws and regulations in the U.S., France and elsewhere, including loi de Securisation de l'emploi, unionization rule and regulations by the National Labor Relations Board, equal pay initiatives, additional anti-discrimination rules or tests and different interpretations of exemptions from overtime laws;
|
•
|
Labor strikes, stoppages, disruptions or other disruptions at our facilities;
|
•
|
Existing and future governmental regulation and the enforcement thereof, for example relating to the tobacco industry, taxation and the environment (including the impact thereof on our Chinese joint ventures);
|
•
|
New reports as to the effect of smoking on human health or the environment;
|
•
|
Changes in general economic, financial and credit conditions in the U.S., Europe, China and elsewhere, including the impact thereof on currency exchange rates (including any weakening of the euro and Real) and on interest rates;
|
•
|
Changes in the manner in which we finance our debt and future capital needs, including potential acquisitions;
|
•
|
The success of, and costs associated with, our current or future restructuring initiatives, including the granting of any needed governmental approvals and the occurrence of work stoppages or other labor disruptions;
|
•
|
Changes in the discount rates, revenue growth, cash flow growth rates or other assumptions used by the Company in its assessment for impairment of assets and adverse economic conditions or other factors that would result in significant impairment charges;
|
•
|
The failure of one or more material suppliers, including energy, resin and pulp suppliers, to supply materials as needed to maintain our product plans and cost structure;
|
•
|
International conflicts and disputes, such as those involving the Russian Federation and the Middle East, which restrict our ability to supply products into affected regions, due to the corresponding effects on demand, the application of international sanctions, or practical consequences on transportation, banking transactions, and other commercial activities in troubled regions;
|
•
|
The pace and extent of further international adoption of LIP cigarette standards and the nature of standards so adopted;
|
•
|
Risks associated with our 50%-owned, non-U.S. joint ventures relating to control and decision-making, compliance, accounting standards, transparency and customer relations, among others;
|
•
|
A failure in our risk management and/or currency or interest rate swaps and hedging programs, including the failures of any insurance company or counterparty;
|
•
|
The number, type, outcomes (by judgment or settlement) and costs of legal, tax, regulatory or administrative proceedings, litigation and/or amnesty programs, including those in Brazil and France;
|
•
|
The outcome and cost of LIP-related intellectual property infringement and validity litigation in Europe and the European Patent Office opposition proceedings;
|
•
|
Risks associated with acquisitions or other strategic transactions, including acquired liabilities and restrictions, retaining customers from businesses acquired, achieving any expected results or synergies from acquired businesses, complying with new regulatory frameworks, difficulties in integrating acquired businesses or implementing strategic transactions generally and risks associated with international acquisition transactions, including in countries where we do not currently have a material presence;
|
•
|
Risks associated with dispositions, including post-closing claims being made against us, disruption to our other businesses during a sale process or thereafter, credit risks associated with any buyer of such disposed assets and our ability to collect funds due from any such buyer;
|
•
|
Risks associated with our global asset realignment initiatives, including: changes in tax law, treaties, interpretations, or regulatory determinations; audits made by applicable regulatory authorities and/or our auditor; and our ability to operate our business in a manner consistent with the regulatory requirements for such realignment;
|
•
|
Increased taxation on tobacco-related products;
|
•
|
Costs and timing of implementation of any upgrades or changes to our information technology systems;
|
•
|
Failure by us to comply with any privacy or data security laws or to protect against theft of customer, employee and corporate sensitive information;
|
•
|
Changes in tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities;
|
•
|
Changes in construction and infrastructure spending and its impact on demand for certain products;
|
•
|
Potential loss of consumer awareness and demand for acquired companies’ products if it is decided to rebrand those products under the Company’s legacy brand names; and
|
•
|
Other factors described elsewhere in this document and from time to time in documents that we file with the SEC.
|
Issuer Purchases of Equity Securities
|
||||||||||||||||||
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price
Paid per
Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Programs
|
|
Approximate Dollar Value of Shares that May Yet be Purchased Under the Programs
|
||||||||||
|
|
|
|
|
|
(# shares)
|
|
($ in millions)
|
|
($ in millions)
|
||||||||
January 1-March 31, 2017
|
|
24,200
|
|
|
$
|
41.93
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
April 1-June 30, 2017
|
|
387
|
|
|
37.89
|
|
|
|
|
|
|
|
||||||
July 1-31, 2017
|
|
589
|
|
|
37.88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
August 1-31, 2017
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
||||||
September 1-30, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Year-to-Date 2017
|
|
25,176
|
|
|
$
|
41.77
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Exhibit
Number
|
|
Exhibit
|
31.1
|
|
|
31.2
|
|
|
32
|
|
|
101
|
|
The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flow, and (vi) Notes to Consolidated Financial Statements.
|
By:
|
/s/ Allison Aden
|
|
Allison Aden
Executive Vice President, Finance and
Chief Financial Officer
(duly authorized officer and principal financial officer)
|
|
|
|
November 1, 2017
|
By:
|
/s/ Robert J. Cardin
|
|
Robert J. Cardin
Corporate Controller
(principal accounting officer)
|
|
|
|
November 1, 2017
|
•
|
"Banded cigarette paper"
is a type of paper, used to produce lower ignition propensity cigarettes, by applying bands to the paper during the papermaking process.
|
•
|
"Heat-not-Burn"
is an emerging tobacco industry technology in which a processed tobacco material is heated to release a nicotine-containing aerosol (vapor) for consumer intake. This technology is intended to be a reduced-risk product compared to traditional cigarettes.
|
•
|
"Lower ignition propensity"
cigarette paper includes banded and print banded cigarette paper, both of which contain bands, which increase the likelihood that an unattended cigarette will self-extinguish.
|
•
|
"Net debt to EBITDA ratio"
is a financial measurement used in bank covenants where "
Net Debt
" is defined as consolidated total debt minus unrestricted domestic cash and cash equivalents and 65% of non-domestic unrestricted domestic cash and cash equivalents, in excess of $15 million, and "
EBITDA"
is defined as net income plus the sum of interest expense, income tax expense, depreciation and amortization, non-cash restructuring and impairment charges less amortization of deferred revenue and interest in the earnings of equity affiliates to the extent such earnings are not distributed to the Company.
|
•
|
"Net foreign currency translation impacts"
are estimates of the impact of changes in foreign currency rates on the translation of the Company's financial results as compared to the applicable comparable period and are derived by translating the current local currency results into U.S. Dollars based upon the foreign currency exchange rates for the applicable comparable period.
|
•
|
"Net debt to equity ratio"
is total debt less cash and cash equivalents, divided by stockholders' equity.
|
•
|
"Net operating working capital"
is accounts receivable, inventory, income taxes receivable and prepaid expense, less accounts payable, accrued expenses and income taxes payable.
|
•
|
"Non-wovens"
are a fabric-like material made from long fibers, bonded together by chemical, mechanical, heat or solvent treatment. The term is used to denote fabrics, such as felt, which are neither woven nor knitted.
|
•
|
"Print banded cigarette paper"
is a type of paper, used to produce lower ignition propensity cigarettes, with bands added to the paper during a printing process, subsequent to the papermaking process.
|
•
|
"Reconstituted tobacco"
is produced in two forms: leaf, or reconstituted tobacco leaf, and wrapper and binder products. Reconstituted tobacco leaf is blended with virgin tobacco as a design aid to achieve certain attributes of finished cigarettes. Wrapper and binder are reconstituted tobacco products used by manufacturers of cigars.
|
•
|
"Restructuring expense"
represents expenses incurred in connection with activities intended to significantly change the size or nature of the business operations, including significantly reduced utilization of operating equipment, exit of a product or market or a significant workforce reduction and charges to reduce property, plant and equipment to its fair value.
|
•
|
"Reverse osmosis"
is a water purification technology that uses a semipermeable membrane to remove larger particles from drinking water.
|
•
|
"Start-up costs"
are costs incurred prior to generation of income producing activities in the case of a new plant, or costs incurred in excess of expected ongoing normal costs in the case of a new or rebuilt machine. Start-up costs can include excess variable costs such as raw materials, utilities and labor and unabsorbed fixed costs.
|
•
|
"Tobacco paper"
includes cigarette paper which wraps the column of tobacco within a cigarette and has varying properties such as basis weight, porosity, opacity, tensile strength, texture and burn rate, as well as plug wrap paper which wraps the outer layer of a cigarette filter and is used to hold the filter materials in a cylindrical form, and tipping paper which joins the filter element to the tobacco-filled column of the cigarette and is both printable and glueable at high speeds.
|
•
|
"Total debt to capital ratio"
is total debt divided by the sum of total debt and total stockholders' equity.
|
•
|
"Urethane"
is a crystalline compound composed of organic units used in the manufacture of polyurethane and various types of films.
|
•
|
"Unallocated expenses"
are
expenses within supporting overhead departments which were not allocated to a specific segment.
|
1 Year Schweitzer Mauduit Chart |
1 Month Schweitzer Mauduit Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions