|
|
|
|
|
terug |
Datum nieuwsfeit: 14-11-2005
Rockwood rapporteert sterke derde kwartaalresultaten 2005; netto-omzet en aangepast EBITDA over afgelopen jaar omhoog (gecorrigeerd)
( BW)(CQN-NJ-ROCKWOOD-HOLDINGS)(ROC) Rockwood Reports Strong
Third-Quarter 2005 Results; Net Sales and Adjusted EBITDA Up Over
Prior Year
Business Editors
(Corrected and replaced by Business Wire)
PRINCETON, N.J.--(BUSINESS WIRE)--Nov. 14, 2005--Rockwood
Holdings, Inc. (NYSE: ROC), a global producer of specialty chemicals
and advanced materials, today announced third quarter 2005 results as
follows:
Consolidated Results: 2005 versus As Reported 2004
Third quarter 2005 net sales were $771.7 million and Adjusted
EBITDA was $140.0 million compared to third quarter 2004 net sales of
$533.6 million and Adjusted EBITDA of $95.1 million; an increase of
44.6% and 47.2%, respectively.
Net loss in the third quarter of 2005 was $13.3 million compared
to a net loss of $59.6 million in the third quarter of 2004. Net loss
in the third quarter of 2005 included $31.8 million of net after tax
charges, primarily charges related to our initial public offering
(IPO). Net loss in the third quarter of 2004 included $52.8 million of
net after tax charges, primarily acquisition related inventory
write-up reversals.
Year to date 2005 net sales were $2,358.8 million and Adjusted
EBITDA was $433.7 million compared to year to date 2004 net sales of
$1,027.9 million and Adjusted EBITDA of $194.3 million; an increase of
129.5% and 123.2%, respectively.
Year to date 2005 net income was $113.6 million compared to a year
to date 2004 net loss of $46.2 million. Year to date 2005 net income
included $58.4 million of net after tax gains, primarily related to
foreign exchange gains on euro denominated debt partially offset by
the IPO charges. Year to date 2004 net loss included $50.6 million of
net after tax charges, primarily acquisition related inventory
write-up reversals and foreign exchange losses on euro denominated
debt.
Actual results in 2004 do not include the results of the
businesses acquired in the Dynamit Nobel acquisition prior to the
acquisition date of July 31, 2004, the Johnson Matthey business prior
to September 2, 2004 and any results from Groupe Novasep which was
acquired on December 31, 2004.
Consolidated Results: 2005 versus Pro Forma 2004
Third quarter 2005 net sales and Adjusted EBITDA of $771.7 million
and $140.0 million, respectively, compares to third quarter 2004 pro
forma net sales of $713.9 million and pro forma Adjusted EBITDA of
$133.6 million; an increase of 8.1% and 4.8%, respectively. (The pro
forma results include the results from the acquisitions as if they had
occurred at the beginning of the period presented.)
Year to date 2005 net sales and Adjusted EBITDA of $2,358.8
million and $433.7 million, respectively, compares to year to date
2004 pro forma net sales of $2,157.9 million and pro forma Adjusted
EBITDA of $402.7 million; an increase of 9.3% and 7.7%, respectively.
The increase in our consolidated results over prior year pro forma
results was primarily driven by strong performance in our Advanced
Ceramics and Specialty Chemicals segments.
Seifi Ghasemi, Chairman and Chief Executive Officer said "We are
pleased with our third quarter results, particularly within our new
businesses acquired in the Dynamit Nobel acquisition, which continue
to show very strong momentum. Our Advanced Ceramics and Specialty
Chemicals segments had very solid results. We are very excited about
growth opportunities in our new businesses, in general, and in
specific applications such as ceramic hip replacement components and
lithium applications." Mr. Ghasemi added "Overall, our results
continue to prove the value of our diverse portfolio of world-class
businesses, well positioned with leading technology and market
positions and significant geographic, customer, end market and raw
material sourcing diversity."
Segment Results: 2005 versus As Reported 2004
Adjusted EBITDA changes year on year were generally due to the
same reasons discussed below on a pro forma basis along with the
impact of the actual results in 2004 not including the results of the
businesses acquired in the Dynamit Nobel acquisition prior to the
acquisition date of July 31, 2004, the Johnson Matthey business prior
to September 2, 2004 and any results from Groupe Novasep.
Segment Results: 2005 versus Pro Forma 2004
Performance Additives
Net sales increased 0.7% and Adjusted EBITDA was unchanged in the
third quarter year on year. We had volume increases in our Pool and
Spa chemicals' business and lower selling, general and administrative
expenses in our Timber Treatment and Color Pigments and Services
businesses. This was offset by lower volume in our Timber Treatment
business on soft demand in the treated wood market and lower volume in
our Clay-based Additives business following a slowdown in oilfield
production after Hurricanes Katrina and Rita. Raw material price
increases were offset by selling price increases.
Year to date net sales increased 1.1% while Adjusted EBITDA
decreased 1.5% primarily due to selling price increases offset by raw
material price increases as well as lower volume in the Timber
Treatment, Color Pigments and Services and Clay-based Additives
businesses.
Specialty Compounds
Net sales increased 10.8% while Adjusted EBITDA decreased 9.6% in
the third quarter year on year as higher selling prices were offset by
rapidly rising raw material costs.
Year to date net sales increased 16.6% while Adjusted EBITDA
decreased 4.5% as compared to prior year as increased volume in wire
and cable products and higher selling prices were offset by rising raw
material costs.
Electronics
Net sales and Adjusted EBITDA increased 8.6% and 1.3%,
respectively, in the third quarter primarily due to increased sales
volumes in our Electronics Chemicals business. Strong volume growth
occurred particularly in printed circuit board chemicals due to our
expansion in China as well as increased demand for cell phone and
personal computer products. These improvements were partially offset
by continued selling price declines in our Wafer Reclaim business and
higher general manufacturing costs.
On a year to date basis, net sales increased 7.9% while Adjusted
EBITDA declined 5.1% as the Electronics Chemicals' volume increases
were insufficient to offset the Wafer Reclaim selling price declines
and higher manufacturing costs.
Specialty Chemicals
Net sales and Adjusted EBITDA increased 13.6% and 23.3%,
respectively, in the third quarter primarily due to volume increases
in aerospace, automotive and lithium applications.
Year to date net sales and Adjusted EBITDA increased 15.7% and
27.6%, respectively, due to volume increases and selling price
increases partially offset by raw material price increases. Also,
currency changes favorably impacted year to date results.
Titanium Dioxide Pigments
Net sales and Adjusted EBITDA improved 4.2% and 2.4%,
respectively, over prior year primarily due to sales of certain
recycling products and cost reduction measures offset by weaker demand
in the synthetic fiber market, primarily due to historically low
cotton prices.
Net sales and Adjusted EBITDA improved 1.7% and 5.2%,
respectively, on a year to date basis as cost reduction measures and
currency changes offset weaker synthetic fiber demand.
Advanced Ceramics
Net sales and Adjusted EBITDA increased 10.0% and 20.1%,
respectively, in the third quarter year on year as a result of
increased volumes of medical products and a favorable mix of Piezo
applications. We continue to see significant sales volume growth in
our medical division primarily due to strong demand for ceramic hip
replacement components.
Year to date net sales and Adjusted EBITDA increased 9.2% and
18.6%, respectively, due to the same reasons and, to a lesser extent,
currency changes.
Groupe Novasep
Net sales increased 12.3% while Adjusted EBITDA decreased 18.0% in
the third quarter. Sales increases resulted from acquisitions
consummated in late 2004 by Novasep prior to the combination with our
business as well as sales generated in lower margin yielding
applications. However, losses continue to be incurred at the Rohner
facility due to continued capacity utilization issues.
Year to date net sales increased 18.5% while Adjusted EBITDA
decreased 14.3% due to the above reasons.
Other income (expense)
Interest expense, net. For the third quarter of 2005, interest
expense, net, increased $1.6 million. The third quarter of 2005 and
2004 included a gain of $6.4 million and a loss of $1.8 million,
respectively, representing the movement in the mark-to-market
valuation of our interest rate and cross-currency hedging instruments.
The remaining increase of $9.8 million was primarily due to higher
debt levels from the acquisitions, partially offset by lower interest
due to debt repaid from the IPO proceeds (see below).
Foreign exchange gain (loss), net. In the third quarter of 2005
and 2004, we had foreign exchange gains (losses) of $2.1 million and
$(43.9) million, respectively. The euro strengthened from the
beginning of the third quarter of 2004 to the end of the third quarter
of 2004 causing a significant loss related to our euro-denominated
debt when re-measured into U.S. dollars in the prior year. The euro
weakened slightly from the beginning of the third quarter of 2005 to
the end of the third quarter of 2005, causing a small gain related to
the same euro-denominated debt.
Loss on early extinguishment of debt. In connection with the IPO,
$13.2 million of the proceeds was used to pay redemption premiums on
certain debt repaid with IPO proceeds. In addition, we wrote off $13.4
million of deferred financing costs in the third quarter of 2005
associated with debt repaid with IPO proceeds.
Refinancing expenses. In the third quarter of 2004, we recorded a
charge of $2.8 million primarily related to a write-off of deferred
financing costs on long-term debt that was repaid as part of the
Dynamit Nobel acquisition.
Income tax provision
We recorded an income tax provision of $10.8 million in the third
quarter of 2005 on a pre-tax loss of $3.1 million. Included in the tax
provision was the recording of a valuation allowance of $8.3 million
on deferred tax assets for U.S. net operating loss carry-forwards.
This valuation allowance was recorded due to losses incurred in the
third quarter of 2005 in the U.S. primarily due to the IPO related
charges. The effective income tax rate for the third quarter of 2004
was 21.7%. The effective tax rate in both periods was impacted by the
recording of valuation allowances in certain other jurisdictions as
well as the impact of foreign tax rate differentials.
Net (loss) income and earnings per share (a)
Net loss in the third quarter of 2005 was $13.3 million compared
to a net loss of $59.6 million in the third quarter of 2004.
Loss per share was $0.25 per share in the third quarter of 2005 on
a basic and diluted basis. Basic and diluted loss per share was $1.50
per share in the third quarter of 2004.
Net loss per share in the third quarter of 2005 using the actual
net loss of $13.3 million and pro forma diluted shares of 74,674
thousand (see (a)) was $(0.18) per share. Net loss in the third
quarter of 2005 includes IPO related charges of $36.6 million, or
$22.5 million after tax and $(0.30) per share on a pro forma diluted
basis. This amount consists of the $26.6 million of loss on early
extinguishment of debt described above as well as $10.0 million of
termination fees on the management services agreement with affiliates
of Kohlberg Kravis Roberts & Co. L.P. ("KKR") and DLJ Merchant Banking
Partners III, L.P. ("DLJMB"). Net income in the third quarter of 2005
also includes $2.1 million, or $1.3 million after tax and $0.02 per
share, of foreign exchange gains on euro denominated debt; $2.9
million, or $1.8 million after tax and $(0.02) per share, of
restructuring and related charges; other special charges and
non-recurring items of $0.8 million, or $0.5 million after tax and
$(0.01) per share and $8.3 million, or ($0.11) per share of valuation
allowance on U.S. deferred tax assets related to net operating loss
carry-forwards. Interest expense in the third quarter of 2005 related
to debt repaid with IPO proceeds was $9.3 million, or $5.7 million
after tax and $(0.08) per share.
Year to date 2005 net income was $113.6 million compared to year
to date 2004 net loss of $46.2 million.
Year to date 2005 basic and diluted earnings per share were $2.02
and $1.98 per share, respectively. Year to date 2004 basic and diluted
loss per share was $1.80 per share.
Year to date 2005 net income per share using the actual net income
of $113.6 million and the pro forma diluted shares of 74,674 thousand
(see (a)) was $1.52 per share. Year to date 2005 net income includes
the IPO related charges of $36.6 million, or $22.5 million after tax
and $(0.30) per share; foreign exchange gains on euro denominated debt
of $116.1 million, or $71.4 million after tax and $0.96 per share;
restructuring and related charges of $9.2 million, or $5.8 million
after tax and $(0.08) per share; inventory write-up reversals of $3.1
million, or $2.0 million after tax and $(0.03) per share; other
special charges and non-recurring items of $4.8 million, or $3.0
million after tax and $(0.04) per share and $20.3 million, or $0.27
per share of valuation allowance decreases on US deferred tax assets
related to net operating loss carry-forwards. Year to date 2005
interest expense related to debt repaid with IPO proceeds was $33.2
million, or $20.4 million after tax and $(0.27) per share.
¶ (a) The per share calculations for individual net income
components have been computed on a pro forma diluted basis
using the average shares and common stock equivalents
outstanding (78,616 thousand) from the date of our IPO through
September 30, 2005. Under the treasury stock method used in
calculating diluted earnings per share this equates to 74,674
thousand diluted shares. These calculations also tax affect
individual components at the applicable statutory tax rate
versus the effective tax rate.
Initial Public Offering
Rockwood's shares of common stock began trading on August 17, 2005
on the New York Stock Exchange under the ticker symbol "ROC." Net
proceeds of $435.7 million were used primarily to redeem certain of
the Company's debt and redeemable convertible preferred stock. We had
net debt of $2,703.6 million as of September 30, 2005.
This press release includes "non-GAAP financial measures",
specifically, a discussion of Adjusted EBITDA (net income plus
interest expense, net, income tax provision (benefit) and depreciation
and amortization). Adjusted EBITDA is not intended to be an
alternative to net income (loss) as an indicator of operating
performance or to cash flows from operating activities as a measure of
liquidity. Additionally, Adjusted EBITDA is not intended to be a
measure of free cash flow for management's discretionary use, as it
does not consider certain cash requirements such as interest payments,
tax payments and debt service requirements. We use Adjusted EBITDA on
a consolidated basis to assess our operating performance, to calculate
performance-based cash bonuses and determine whether certain
performance-based options vest (as targets for both are tied to
Adjusted EBITDA), and as a liquidity measure. In addition, we use
Adjusted EBITDA to determine compliance with the Company's debt
covenants. Adjusted EBITDA on a segment basis is also the primary
measure used by our chief operating decision maker to evaluate the
ongoing performance of our business segments and reporting units. A
reconciliation of Adjusted EBITDA to net income (loss) is contained in
the press release. We strongly urge you to review the reconciliation
information. In addition, the Company discusses sales growth in terms
of nominal (actual) and organic (nominal less foreign currency and
acquisition/divestiture/ merger/joint venture impacts), net income per
share on a pro forma diluted basis and certain other charges and
non-recurring costs on a pro forma diluted per share basis. These
non-GAAP measures should not be viewed as an alternative to GAAP
measures of performance. Furthermore, these measures may not be
consistent with similar measures provided by other companies.
Rockwood Holdings, Inc. is the ultimate parent company of Rockwood
Specialties Group, Inc., a leading global specialty chemicals and
advanced materials company. Rockwood has a worldwide employee base of
approximately 10,200 people and net revenue of approximately $2.9
billion in 2004 on a pro forma basis. The company focuses on global
niche segments of the specialty chemicals and advanced materials
markets, including specialty chemicals, performance additives,
titanium dioxide pigments, advanced ceramics, custom synthesis,
specialty compounds and electronics. For more information on Rockwood,
please visit www.rocksp.com.
The information set forth in this press release contains certain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 concerning the business,
operations and financial condition of Rockwood Holdings, Inc. and its
subsidiaries and affiliates ("Rockwood"). Words such as "anticipates,"
"believes," "estimates," "expects," "forecasts," "predicts" and
variations of such words or expressions are intended to identify
forward-looking statements. Although Rockwood believes the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, there can be no assurance that its
expectations will be realized. "Forward-looking statements" consist of
all non-historical information, including the statements referring to
the prospects and future performance of Rockwood. Actual results could
differ materially from those projected in Rockwood's forward-looking
statements due to numerous known and unknown risks and uncertainties,
including, among other things, the "Risk Factors" described in
Rockwood's Registration Statement on Form S-1 (Amendment No. 6) dated
August 8, 2005 on file with the Securities and Exchange Commission.
Rockwood does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after the
date on which any such statement is made or to reflect the occurrence
of unanticipated events.
-0-
*T
Rockwood Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Dollars in millions except per share amounts; shares in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
---------- -------- --------- ---------
NET SALES $ 771.7 $ 533.6 $2,358.8 $1,027.9
COST OF PRODUCTS SOLD 538.2 403.0 1,636.7 756.3
---------- -------- --------- ---------
GROSS PROFIT 233.5 130.6 722.1 271.6
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 143.8 106.1 451.5 177.2
RESTRUCTURING CHARGES, net 2.9 0.1 8.7 0.1
MANAGEMENT SERVICES AGREEMENT
TERMINATION FEE 10.0 - 10.0 -
---------- -------- --------- ---------
OPERATING INCOME 76.8 24.4 251.9 94.3
---------- -------- --------- ---------
OTHER INCOME (EXPENSES)
Interest expense, net (55.4) (53.8) (177.6) (100.0)
Loss on early extinguishment
of debt (26.6) - (26.6) -
Refinancing expenses - (2.8) - (2.8)
Foreign exchange gain (loss),
net 2.1 (43.9) 116.1 (35.3)
Other, net - - - (4.0)
---------- -------- --------- ---------
Net (79.9) (100.5) (88.1) (142.1)
(LOSS) INCOME BEFORE TAXES
AND MINORITY INTEREST (3.1) (76.1) 163.8 (47.8)
INCOME TAX PROVISION (BENEFIT) 10.8 16.5 52.5 (1.6)
---------- -------- --------- ---------
NET (LOSS) INCOME BEFORE
MINORITY INTEREST (13.9) (59.6) 111.3 (46.2)
MINORITY INTEREST 0.6 - 2.3 -
---------- -------- --------- ---------
NET (LOSS) INCOME $ (13.3) $ (59.6) $ 113.6 $ (46.2)
========== ======== ========= =========
Per share data:
BASIC (LOSS) EARNINGS PER
COMMON SHARE $ (0.25) $ (1.50) $ 2.02 $ (1.80)
========== ======== ========= =========
DILUTED (LOSS) EARNINGS PER
COMMON SHARE $ (0.25) $ (1.50) $ 1.98 $ (1.80)
========== ======== ========= =========
Weighted average number of
basic shares outstanding 61,845 40,354 54,197 27,326
========== ======== ========= =========
Weighted average number of
diluted shares outstanding 61,845 40,354 55,092 27,326
========== ======== ========= =========
Rockwood Holdings, Inc. and Subsidiaries
Third Quarter Results As Reported
Net Sales Adj. EBITDA
------------------------- -------------------------
($M) Q3 2004 Q3 2005 % Change Q3 2004 Q3 2005 % Change
------------------------- -------------------------
Performance
Additives $158.3 $170.7 7.8% $ 35.5 $ 36.9 3.9%
Specialty
Compounds 52.0 57.6 10.8% 7.3 6.6 -9.6%
Electronics 43.2 46.9 8.6% 7.6 7.7 1.3%
Specialty
Chemicals 116.6 202.6 73.8% 21.1 40.8 93.4%
Titanium
Dioxide
Pigments 68.9 106.6 54.7% 14.1 21.5 52.5%
Advanced
Ceramics 56.6 95.3 68.4% 13.3 24.5 84.2%
Groupe
Novasep 38.0 92.0 142.1% 5.2 12.3 136.5%
Corporate - - (9.0) (10.3) 14.4%
---------------------------------------------------
Total
Rockwood $533.6 $771.7 44.6% $ 95.1 $140.0 47.2%
Adj. EBITDA
Margin 17.8% 18.1% 0.3 ppt
Year-to-Date Nine Months Results As Reported
Net Sales
--------------------------------
($M) YTD 2004 YTD 2005 % Change
--------------------------------
Performance Additives $ 470.5 $ 520.3 10.6%
Specialty Compounds 152.5 177.8 16.6%
Electronics 124.8 134.6 7.9%
Specialty Chemicals 116.6 642.3 450.9%
Titanium Dioxide Pigments 68.9 320.3 364.9%
Advanced Ceramics 56.6 283.6 401.1%
Groupe Novasep 38.0 279.9 636.6%
Corporate - -
--------------------------------
Total Rockwood $ 1,027.9 $ 2,358.8 129.5%
Adj. EBITDA Margin
Adj. EBITDA
--------------------------------
($M) YTD 2004 YTD 2005 % Change
--------------------------------
Performance Additives $ 114.2 $ 118.3 3.6%
Specialty Compounds 22.3 21.3 -4.5%
Electronics 21.6 20.5 -5.1%
Specialty Chemicals 21.1 133.2 531.3%
Titanium Dioxide Pigments 14.1 64.5 357.4%
Advanced Ceramics 13.3 70.0 426.3%
Groupe Novasep 5.2 35.3 578.8%
Corporate (17.5) (29.4) 68.0%
--------------------------------
Total Rockwood $ 194.3 $ 433.7 123.2%
Adj. EBITDA Margin 18.9% 18.4% -0.5 ppt
Rockwood Holdings, Inc. and Subsidiaries
Third Quarter Results Pro-forma
---------------------------------
Net Sales Adj. EBITDA
------------------------- -------------------------
($M) Q3 2004 Q3 2005 % Change Q3 2004 Q3 2005 % Change
------------------------- -------------------------
Performance
Additives $169.5 $170.7 0.7% $ 36.9 $ 36.9 0.0%
Specialty
Compounds 52.0 57.6 10.8% 7.3 6.6 -9.6%
Electronics 43.2 46.9 8.6% 7.6 7.7 1.3%
Specialty
Chemicals 178.4 202.6 13.6% 33.1 40.8 23.3%
Titanium
Dioxide
Pigments 102.3 106.6 4.2% 21.0 21.5 2.4%
Advanced
Ceramics 86.6 95.3 10.0% 20.4 24.5 20.1%
Groupe
Novasep 81.9 92.0 12.3% 15.0 12.3 -18.0%
Corporate - - (7.7) (10.3) 33.8%
---------------------------------------------------
Total
Rockwood $713.9 $771.7 8.1% $133.6 $140.0 4.8%
Adj. EBITDA
Margin 18.7% 18.1% -0.6 ppt
Year-to-Date Nine Months Results Pro-forma
Net Sales
--------------------------------
($M) YTD 2004 YTD 2005 % Change
--------------------------------
Performance Additives $ 514.4 $ 520.3 1.1%
Specialty Compounds 152.5 177.8 16.6%
Electronics 124.8 134.6 7.9%
Specialty Chemicals 555.1 642.3 15.7%
Titanium Dioxide Pigments 315.1 320.3 1.7%
Advanced Ceramics 259.8 283.6 9.2%
Groupe Novasep 236.2 279.9 18.5%
Corporate - -
--------------------------------
Total Rockwood $ 2,157.9 $ 2,358.8 9.3%
Adj. EBITDA Margin
Adj. EBITDA
--------------------------------
($M) YTD 2004 YTD 2005 % Change
--------------------------------
Performance Additives $ 120.1 $ 118.3 -1.5%
Specialty Compounds 22.3 21.3 -4.5%
Electronics 21.6 20.5 -5.1%
Specialty Chemicals 104.4 133.2 27.6%
Titanium Dioxide Pigments 61.3 64.5 5.2%
Advanced Ceramics 59.0 70.0 18.6%
Groupe Novasep 41.2 35.3 -14.3%
Corporate (27.2) (29.4) 8.1%
--------------------------------
Total Rockwood $ 402.7 $ 433.7 7.7%
Adj. EBITDA Margin 18.7% 18.4% -0.3 ppt
Rockwood Holdings, Inc. and Subsidiaries
Reconciliation of Segment Sales and Adjusted EBITDA:
2004 Pro-forma to 2005
------------------------
Third Quarter
---------------
Three Months Ended
----------------------
(millions) September 30,
----------------------
2005 2004 Total Total
---------- ----------- ------------ ------------
(Actual) (Pro-Forma) Change in $ Change in %
---------- ----------- ------------ ------------
Net Sales:
Performance
Additives $ 170.70 $ 169.5 $ 1.2 0.7 %
Specialty Compounds 57.6 52.0 5.6 10.8
Electronics 46.9 43.2 3.7 8.6
Specialty Chemicals 202.6 178.4 24.2 13.6
Titanium Dioxide
Pigments 106.6 102.3 4.3 4.2
Advanced Ceramics 95.3 86.6 8.7 10.0
Groupe Novasep 92.0 81.9 10.1 12.3
---------------------- ------------ ------------
Total $ 771.7 $ 713.9 $ 57.8 8.1 %
====================== ============ ============
Foreign
(millions) Exchange Organic Organic
Effect in $ Change in $ Change in %
-------------- ------------ ------------
Net Sales:
Performance Additives (0.2) $ 1.4 $ 0.8 %
Specialty Compounds - 5.6 10.8
Electronics 0.6 3.1 7.2
Specialty Chemicals 1.3 22.9 12.8
Titanium Dioxide Pigments (0.2) 4.5 4.4
Advanced Ceramics (0.2) 8.9 10.3
Groupe Novasep 1.7 8.4 10.3
-------------- ------------ ------------
Total $ 3.0 $ 54.8 $ 7.7 %
============== ============ ============
Three Months Ended
----------------------
(millions) September 30,
----------------------
2005 2004 Total Total
---------- ----------- ------------ ------------
(Actual) (Pro-Forma) Change in $ Change in %
---------- ----------- ------------ ------------
Adjusted EBITDA:
Performance
Additives $ 36.9 $ 36.9 $ - - %
Specialty Compounds 6.6 7.3 (0.7) (9.6)
Electronics 7.7 7.6 0.1 1.3
Specialty Chemicals 40.8 33.1 7.7 23.3
Titanium Dioxide
Pigments 21.5 21.0 0.5 2.4
Advanced Ceramics 24.5 20.4 4.1 20.1
Groupe Novasep 12.3 15.0 (2.7) (18.0)
Corporate (10.3) (7.7) (2.6) 33.8
---------------------- ------------ ------------
Totals $ 140.0 $ 133.6 $ 6.4 4.8 %
====================== ============ ============
Foreign
(millions) Exchange Organic Organic
Effect in $ Change in $ Change in %
-------------- ------------ ------------
Adjusted EBITDA:
Performance Additives $ 0.5 $ (0.5) (1.4)%
Specialty Compounds - (0.7) (9.6)
Electronics 0.1 - -
Specialty Chemicals 0.2 7.5 22.7
Titanium Dioxide Pigments (0.1) 0.6 2.9
Advanced Ceramics (0.1) 4.2 20.6
Groupe Novasep - (2.7) (18.0)
Corporate 0.1 (2.7) 35.1
-------------- ------------ ------------
Totals $ 0.7 $ 5.7 4.3 %
============== ============ ============
Year-to-Date
--------------
Nine Months Ended
----------------------
(millions) September 30,
----------------------
2005 2004 Total Total
---------- ----------- ------------ ------------
(Actual) (Pro-Forma) Change in $ Change in %
---------- ----------- ------------ ------------
Net Sales:
Performance
Additives $ 520.3 $ 514.4 $ 5.9 1.1 %
Specialty Compounds 177.8 152.5 25.3 16.6
Electronics 134.6 124.8 9.8 7.9
Specialty Chemicals 642.3 555.1 87.2 15.7
Titanium Dioxide
Pigments 320.3 315.1 5.2 1.7
Advanced Ceramics 283.6 259.8 23.8 9.2
Groupe Novasep 279.9 236.2 43.7 18.5
---------------------- ------------ ------------
Total $ 2,358.8 $ 2,157.9 $ 200.9 9.3 %
====================== ============ ============
Foreign
(millions) Exchange Organic Organic
Effect in $ Change in $ Change in %
-------------- ------------ ------------
Net Sales:
Performance Additives $ 3.6 $ 2.3 0.4 %
Specialty Compounds 1.5 23.8 15.6
Electronics 3.0 6.8 5.4
Specialty Chemicals 17.6 69.6 12.5
Titanium Dioxide Pigments 9.3 (4.1) (1.3)
Advanced Ceramics 7.5 16.3 6.3
Groupe Novasep 8.3 35.4 15.0
-------------- ------------ ------------
Total $ 50.8 $ 150.1 7.0 %
============== ============ ============
Nine Months Ended
----------------------
(millions) September 30,
----------------------
2005 2004 Total Total
---------- ----------- ------------ ------------
(Actual) (Pro-Forma) Change in $ Change in %
---------- ----------- ------------ ------------
Adjusted EBITDA:
Performance
Additives $ 118.3 $ 120.1 $ (1.8) (1.5)%
Specialty Compounds 21.3 22.3 (1.0) (4.5)
Electronics 20.5 21.6 (1.1) (5.1)
Specialty Chemicals 133.2 104.4 28.8 27.6
Titanium Dioxide
Pigments 64.5 61.3 3.2 5.2
Advanced Ceramics 70.0 59.0 11.0 18.6
Groupe Novasep 35.3 41.2 (5.9) (14.3)
Corporate (29.4) (27.2) (2.2) 8.1
---------------------- ------------ ------------
Total $ 433.7 $ 402.7 $ 31.0 7.7 %
====================== ============ ============
Foreign
(millions) Exchange Organic Organic
Effect in $ Change in $ Change in %
-------------- ------------ ------------
Adjusted EBITDA:
Performance Additives $ 1.6 $ (3.4) (2.8)%
Specialty Compounds 0.2 (1.2) (5.4)
Electronics 0.1 (1.2) (5.6)
Specialty Chemicals 3.8 25.0 23.9
Titanium Dioxide Pigments 1.9 1.3 2.1
Advanced Ceramics 1.9 9.1 15.4
Groupe Novasep 0.8 (6.7) (16.3)
Corporate (1.1) (1.1) 4.0
-------------- ------------ ------------
Total $ 9.2 $ 21.8 5.4 %
============== ============ ============
Rockwood Holdings, Inc. and Subsidiaries
Reconciliation of Net Income before Taxes to Adjusted EBITDA by
Segment
---------
Third Quarter: As Reported
----------------------------
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
--------------- ----------- --------- ----------- ---------- ---------
Three months
ended
September 30,
2005
Income (loss)
before taxes
and minority
interest $ 19.2 $ 5.3 $ 2.9 $ 25.0 $ 4.9
Interest, net 6.9 (0.7) 1.5 5.2 7.8
Depreciation
and
amortization 7.9 1.4 4.2 9.8 8.8
Restructuring
and related
charges 1.5 - 0.1 0.5 -
CCA litigation
defense costs - - - - -
Systems
/organization
establishment
expenses 0.3 - - - -
Management
services
agreement
termination
fee - - - - -
Loss on early
extinguishment
of debt 1.1 0.6 0.3 - -
Foreign
exchange
(gain) loss - - (1.3) 0.3 -
Other - - - - -
------------------------------------------------------
Total
Adjusted
EBITDA $ 36.9 $ 6.6 $ 7.7 $ 40.8 $ 21.5
======================================================
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
------------------- -------- ------- --------- ------------
Three months ended
September 30, 2005
Income (loss) before
taxes and minority
interest $ 8.2 $ (0.8) $ (67.8) $ (3.1)
Interest, net 8.3 4.0 22.4 55.4
Depreciation and
amortization 7.4 9.1 0.9 49.5
Restructuring and
related charges 0.6 0.2 - 2.9
CCA litigation defense
costs - - (0.1) (0.1)
Systems/organization
establishment
expenses - - 1.1 1.4
Management services
agreement
termination fee - - 10.0 10.0
Loss on early
extinguishment of
debt - - 24.6 26.6
Foreign exchange
(gain) loss - (0.2) (0.9) (2.1)
Other - - (0.5) (0.5)
Total Adjusted EBITDA $ 24.5 $ 12.3 $ (10.3) $ 140.0
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
--------------- ----------- --------- ----------- ---------- ---------
Three months
ended
September 30,
2004
Income (loss)
before taxes
and minority
interest $ 19.9 $ 6.1 $ 0.2 $ (1.9) $ 5.2
Interest, net 6.8 (0.1) 1.2 2.7 1.1
Depreciation
and
amortization 7.7 1.3 5.2 6.3 3.5
Restructuring and
related
charges 0.2 - - (0.1) -
Systems
/organization
establishment
expenses - - - - -
Inventory
write-up
reversal 0.5 - - 12.7 4.3
Refinancing
expenses - - - - -
Loss from
disposed
businesses - - - - -
Foreign
exchange
(gain) loss 0.4 - 1.0 - -
Other - - - 1.4 -
------------------------------------------------------
Total
Adjusted
EBITDA $ 35.5 $ 7.3 $ 7.6 $ 21.1 $ 14.1
======================================================
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
------------------- -------- ------- --------- ------------
Three months ended
September 30, 2004
Income (loss) before
taxes and minority
interest $ (5.7) $ (4.6) $ (95.3) $ (76.1)
Interest, net 0.8 2 39.3 53.8
Depreciation and
amortization 3.8 4.2 0.2 32.2
Restructuring and
related charges - - - 0.1
Systems/organization
establishment
expenses - - 1.5 1.5
Inventory write-up
reversal 14.4 2.8 - 34.7
Refinancing expenses - - 2.8 2.8
Loss from disposed
businesses - 0.8 - 0.8
Foreign exchange
(gain) loss - - 42.5 43.9
Other - - - 1.4
Total Adjusted EBITDA $ 13.3 $ 5.2 $ (9.0) $ 95.1
Year-to-Date: As Reported
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
----------------- ----------- --------- ----------- --------- --------
Nine months
ended
September 30,
2005
Income (loss)
before taxes
and minority
interest $ 66.3 $ 17.2 $ 4.4 $ 69.0 $ 12.9
Interest, net 20.6 (0.8) 4.0 27.0 24.1
Depreciation
and
amortization 24.6 4.3 12.5 33.8 27.5
Restructuring and
related
charges 4.7 - 2.1 1.6 -
CCA litigation
defense costs 1.3 - - - -
Systems
/organization
establishment
expenses 0.3 - - - -
Cancelled
acquisition
and disposal
costs 0.2 - - - -
Inventory
write-up
reversal - - - - -
Management
services
agreement
termination
fee - - - - -
Loss on early
extinguishment
of debt 1.1 0.6 0.3 - -
Foreign
exchange
(gain) loss (0.8) - (2.8) 1.8 -
Other - - - - -
----------- --------- ----------- --------- --------
Total Adjusted
EBITDA $ 118.3 $ 21.3 $ 20.5 $ 133.2 $ 64.5
=========== ========= =========== ========= ========
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
--------------------- -------- ------- --------- ------------
Nine months ended
September 30, 2005
Income (loss) before
taxes and minority
interest $ 20.7 $ (7.0) $ (19.7) $ 163.8
Interest, net 26.4 11.8 64.5 177.6
Depreciation and
amortization 22.2 27.1 2.7 154.7
Restructuring and
related charges 0.6 0.2 - 9.2
CCA litigation defense
costs - - 0.1 1.4
Systems/organization
establishment
expenses - - 3.0 3.3
Cancelled acquisition
and disposal costs - - 0.4 0.6
Inventory write-up
reversal - 3.1 - 3.1
Management services
agreement
termination fee - - 10.0 10.0
Loss on early
extinguishment of
debt - - 24.6 26.6
Foreign exchange
(gain) loss 0.1 (0.1) (114.5) (116.1)
Other - - (0.5) (0.5)
Total
Adjusted EBITDA $ 70.0 $ 35.5 $ (29.4) $ 433.7
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
----------------- ----------- --------- ----------- --------- --------
Nine months
ended
September 30,
2004
Income (loss)
before taxes
and minority
interest $ 71.1 $ 18.5 $ 3.0 $ (1.9) $ 5.2
Interest
expense, net 21.4 (0.3) 4.1 2.7 1.1
Depreciation
and
amortization 21.8 4.1 15.5 6.3 3.5
Restructuring and
related
charges 0.2 - - (0.1) -
Systems
/organization
establishment
expenses - - - - -
Cancelled
acquisition
and disposal
costs - - - - -
Stamp duty
tax - - - - -
Inventory
write-up
reversal 0.5 - - 12.7 4.3
Refinancing
expenses - - - - -
Loss from
disposed
businesses - - - - -
Foreign
exchange
(gain) loss (0.8) - (1.0) - -
Other - - - 1.4 -
----------- --------- ----------- --------- --------
Total Adjusted
EBITDA $ 114.2 $ 22.3 $ 21.6 $ 21.1 $ 14.1
=========== ========= =========== ========= ========
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
--------------------- -------- ------- --------- ------------
Three months ended
September 30, 2004
Income (loss) before
taxes and minority
interest $ (5.7) $ (4.6) $ (133.4) $ (47.8)
Interest
expense, net 0.8 2.0 68.2 100.0
Depreciation and
amortization 3.8 4.2 1.2 60.4
Restructuring and
related charges - - - 0.1
Systems/organization
establishment
expenses - - 2.5 2.5
Cancelled acquisition
and disposal costs - - 0.1 0.1
Stamp duty tax - - 4.0 4.0
Inventory write-up
reversal 14.4 2.8 - 34.7
Refinancing expenses - - 2.8 2.8
Loss from disposed
businesses - 0.8 - 0.8
Foreign exchange
(gain) loss - - 37.1 35.3
Other - - - 1.4
Total Adjusted EBITDA $ 13.3 $ 5.2 $ (17.5) $ 194.3
Rockwood Holdings, Inc. and Subsidiaries
Reconciliation of Net Income before Taxes to Adjusted EBITDA by
Segment
Third Quarter: Pro-Forma
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
--------------- ----------- --------- ----------- ---------- ---------
Three months
ended
September 30,
2004
Income (loss)
before taxes
and minority
interest $ 19.7 $ 5.5 $ (0.3) $ (8.1) $ 2.8
Interest
expense, net 7.5 (0.1) 1.7 11.3 7.2
Depreciation
and
amortization 8.6 1.9 5.2 9.5 7.1
Restructuring and
related
charges 0.2 - - - -
Systems
/organization
establishment
expenses - - - - -
Inventory
write-up
reversal 0.5 - - 12.7 4.3
Refinancing
expenses - - - - -
Loss on
disposed
businesses - - - - -
Foreign
exchange
loss 0.4 - 1.0 1.1 -
Other - - - 6.6 (0.4)
----------- --------- ----------- ---------- ---------
Total Adjusted
EBITDA $ 36.9 $ 7.3 $ 7.6 $ 33.1 $ 21.0
=========== ========= =========== ========== =========
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
--------------------- -------- ------- --------- ------------
Three months ended
September 30, 2004
Income (loss) before
taxes and minority
interest $ (5.6) $ 3.2 $ (78.3) $ (61.1)
Interest
expense, net 7.7 2.7 22.1 60.1
Depreciation and
amortization 6.3 6.0 0.2 44.8
Restructuring and
related charges - - - 0.2
Systems/organization
establishment
expenses - - 1.5 1.5
Inventory write-up
reversal 14.4 2.8 - 34.7
Refinancing expenses - - 2.8 2.8
Loss on disposed
businesses - - 0.8 0.8
Foreign exchange
loss - - 42.7 45.2
Other (2.4) 0.3 0.5 4.6
Total Adjusted EBITDA $ 20.4 $ 15.0 $ (7.7) $ 133.6
Titanium
Performance Specialty Electronics Specialty Dioxide
($ in millions) Additives Compounds Chemicals Pigments
--------------- ----------- --------- ----------- ---------- ---------
Nine months
ended
September 30,
2005
Income (loss)
before taxes
and minority
interest $ 72.0 $ 16.9 $ 2.0 $ 22.7 $ 14.3
Interest
expense, net 22.5 (0.4) 5.0 33.8 21.8
Depreciation
and
amortization 25.7 5.8 15.6 28.6 21.3
Restructuring
and related
charges 0.2 - - - -
Systems
/organization
establishment
expenses - - - - -
Cancelled
acquisition and
disposal costs - - - - -
Stamp duty tax - - - - -
Inventory
write-up
reversal 0.5 - - 12.7 4.3
Refinancing
expenses - - - - -
Loss on
disposed
businesses - - - - -
Foreign
exchange
(gain) loss (0.8) - (1.0) - -
Other - - - 6.6 (0.4)
------------------------------------------------------
Total Adjusted
EBITDA $ 120.1 $ 22.3 $ 21.6 $ 104.4 $ 61.3
======================================================
Advanced Groupe Corporate Consolidated
($ in millions) Ceramics Novasep
--------------------- -------- -------- ---------- ------------
Three months ended
September 30, 2004
Income (loss) before
taxes and minority
interest $ 4.5 $ 11.8 $ (145.6) $ (1.4)
Interest
expense, net 23.1 7.7 69.2 182.7
Depreciation and
amortization 19.1 18.1 0.7 134.9
Restructuring and
related charges 0.1 0.3 - 0.6
Systems/organization
establishment
expenses - - 2.5 2.5
Cancelled acquisition
and disposal costs - - 0.1 0.1
Stamp duty tax - - 4.0 4.0
Inventory write-up
reversal 14.4 2.8 - 34.7
Refinancing expenses - - 2.8 2.8
Loss on disposed
businesses - - 0.8 0.8
Foreign exchange
(gain) loss - - 37.3 35.5
Other (2.2) 0.5 1.0 5.5
Total Adjusted EBITDA $ 59.0 $ 41.2 $ (27.2) $ 402.7
Consolidated Reconciliation of Net Income to
Adjusted EBITDA As Reported
($in millions) Three months ended Nine months ended
September 30, September 30,
------------------- ------------------
2005 2004 2005 2004
---- ---- ---- ----
Net (loss) income $ (13.3) $ (59.6) $ 113.6 $ (46.2)
Income tax provision
(benefit) 10.8 (16.5) 52.5 (1.6)
Minority interest (0.6) - (2.3) -
------- ------- ------- -------
(Loss) income before taxes
and minority interes (3.1) (76.1) 163.8 (47.8)
Interest expense, net 55.4 53.8 177.6 100.0
Depreciation and amortization 49.5 32.2 154.7 60.4
Restructuring and related
charges 2.9 0.1 9.2 0.1
CCA litigation defense costs (0.1) - 1.4 -
Systems/organization
establishment expenses 1.4 1.5 3.3 2.5
Cancelled acquisitions and
disposition costs - - 0.6 0.1
Stamp duty tax - - - 4.0
Inventory write-up reversal - 34.7 3.1 34.7
Management services agreement
termination fee 10.0 - 10.0 -
Loss on early extinguishment
of debt 26.6 - 26.6 -
Refinancing expenses - 2.8 - 2.8
Loss from disposed businesses - 0.8 - 0.8
Foreign exchange (gain) loss (2.1) 43.9 (116.1) 35.3
Other (0.5) 1.4 (0.5) 1.4
------- ------- ------- -------
Total Adjusted EBITDA $ 140.0 $ 95.1 $ 433.7 $ 194.3
------- ------- ------- -------
Rockwood Holdings, Inc. and Subsidiaries
Consolidated Reconciliation of Net Income to Adjusted EBITDA
Pro-Forma
($ in millions) Three months ended Nine months ended
September 30, 2004 September 30, 2004
------------------ ------------------
Net loss $ (47.7) $ (8.2)
Income tax (benefit)
provision (13.4) 6.8
------------------ ------------------
Loss before taxes and
minority interest (61.1) (1.4)
Interest, net 60.1 182.7
Depreciation and amortization 44.8 134.9
Restructuring and related
charges 0.2 0.6
Systems/organization
establishment expenses 1.5 2.5
Cancelled acquisition and
disposition costs - 0.1
Stamp duty tax - 4.0
Inventory write-up reversal 34.7 34.7
Refinancing expenses 2.8 2.8
Loss from disposed businesses 0.8 0.8
Foreign exchange loss 45.2 35.5
Other 4.6 5.5
------------------ ------------------
Total Adjusted EBITDA $ 133.6 $ 402.7
------------------ ------------------
*T
--30--DES/ph*
CONTACT: HB&M (for Rockwood Holdings, Inc.)
Camille Dager, 215-440-9800
camille@hbmadv.com
or
Shawn Salvatore, 215-440-9800
shawn@hbmadv.com
Note: The original version was corrected and is hereby replaced.