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Blount: Quarter And Full Year Results Fourth

The following excerpt is from the company's SEC filing.

quarter

sales of $201 million

Full year

sales were

$829 million

and Adjusted EBITDA was

$101 million

free cash flow was

$33.7 million

, net of $3.0 million of transaction-related costs

PORTLAND, OR

- March 2, 2016: Blount International, Inc. [NYSE: BLT] (“Blount” or “Company”) today announced preliminary results for the

fourth

quarter and full year ended

Preliminary Results for the Quarter and Full Year Ended

Sales in the

quarter were

$200.7 million

, a decrease of

$31.5 million

percent compared to the

quarter of

. Operating loss for the

$24.4 million

$2.5 million

in the same quarter last year. Consolidated Adjusted EBITDA for the

$21.3 million

$30.5 million

Sales for the full year were

$828.6 million

percent compared to full year

$46.8 million

compared to operating income of

$64.2 million

for full year

. Adjusted EBITDA for full year

$100.8 million

$37.2 million

Blount operates primarily in two business segments - the Forestry, Lawn, and Garden (“FLAG”) segment and the Farm, Ranch, and Agriculture (“FRAG”) segment. The Company reports separate results for the FLAG and FRAG segments. Blount’s Concrete Cutting and Finishing (“CCF”) business is included in “Corporate and Other.”

The FLAG segment had

$138.2 million

, which was

$22.2 million

percent, lower than the

, primarily as the result of reduced unit volume and the effects of foreign currency exchange rate changes. Segment sales volumes were unfavorably impacted by pressure from continued U.S. Dollar strength. The change in segment sales for the comparable

quarter periods is illustrated below.

Change in FLAG Segment Sales

(In millions; amounts may not sum due to rounding)

Fourth quarter 2014

Increase / (Decrease)

Foreign Exchange Translation

Unit Volume

Selling Price / Mix

Fourth quarter 2015

Segment backlog was $114.5 million at

, a decrease of 18 percent from $140.1 million on

December 31, 2014

Segment Earnings Before Interest, Taxes, Depreciation, Amortization, and certain charges (“Adjusted EBITDA”) were

$24.1 million

, including $7.3 million of allocated shared services expenses. Adjusted EBITDA declined 22.6 percent for the

versus the

. The change in FLAG contribution to operating income (loss) and Adjusted EBITDA for the comparable

quarter periods is presented below.

Change in FLAG Segment Contribution to Operating Income (Loss) and Adjusted EBITDA

(In millions; amounts may not sum due to rounding)

As a Percent of Segment Sales

Steel Costs

Costs / Mix

Acquisition accounting(1)

(1) Represents change in non-cash acquisition accounting impact for all FLAG business units

Segment contribution to operating income and Adjusted EBITDA declined mostly due to lower sales volumes, as illustrated above, and higher overall operating costs and mix. Operating costs, including mix, were approximately

$3.8 million

higher, primarily due to higher manufacturing costs on lower production volumes, partially offset by lower SG&A spending in the segment. FLAG factory utilization was 70 percent in the

compared to 88 percent in the

. Lower SG&A in the segment was mostly related to lower incentive compensation rates resulting from lower than targeted operating results along with lower discretionary spending in the quarter in response to lower sales volumes.

The FRAG segment reported

$54.4 million

$8.9 million

percent, from the

. The reduction in sales was the result of lower volumes of log splitters and agriculture parts and attachments. Log splitter volumes are down compared to the strong

quarter of 2014, while the agriculture attachments have been negatively impacted by the continued weak overall agriculture

machinery market conditions. The change in segment sales for the comparable

Change in FRAG Segment Sales

Segment backlog was $19.5 million at

compared to $28.8 million at

The FRAG segment had

$0.7 million

of Adjusted EBITDA in the

, including $2.3 million of allocated shared services expenses. The change in FRAG contribution to operating income and Adjusted EBITDA for the comparable

Change in FRAG Segment Contribution to Operating Income (Loss) and Adjusted EBITDA

Acquired intangible asset impairment(2)

(1) Represents change in non-cash acquisition accounting impact for all FRAG business units

(2) Acquired intangible asset impairment impact of $4.2 million represents the change in FRAG-related intangible asset impairment charges from $19.7 million to $15.5 million in the fourth quarters of 2014 and 2015, respectively.

The lower sales volumes increased costs on lower fixed cost absorption but were partially offset by increases in average pricing.

Corporate and Other net operating expense was $23.9 million, an increase of $19.0 million compared to the

. Corporate and Other net expense in the

includes $10.2 million non-cash related to pension restructuring, $7.7 million of...


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