Neenah Reports Third Quarter 2016 Results

Selling, general and administrative (SG&A) expense of $21.0 million in the third quarter of 2016 decreased from $21.2 million in the prior year primarily due to timing of certain expenses.

Operating income of $26.9 million in 2016 increased 10 percent compared with $24.4 million in 2015. Higher income in 2016 resulted from increased volume, reduced manufacturing costs due to lower material prices, acquisition synergies and improved operational efficiencies, as well as lower integration and restructuring costs.  Combined, these items more than offset impacts from a lower-priced sales mix. Excluding $1.2 million and $2.9 million of costs in 2016 and 2015, respectively, for integration and restructuring, adjusted operating income of $28.1 million increased 3 percent compared with the prior year.

Net interest expense of $2.7 million in the third quarter of 2016 decreased slightly from $2.9 million in the third quarter of 2015 as a result of lower debt levels. The effective income tax rate of 32 percent in the third quarter of 2016 compared with 37 percent in the third quarter of 2015.  The 2015 rate was unusually high due to an adjustment to the amount of state R&D credits expected to be utilized, while the rate in 2016 declined by 1.75% due to the adoption of ASU 2016-09. Income from continuing operations of $16.4 million increased 21 percent compared with $13.5 million in the third quarter of 2015 primarily as a result of the higher operating income and lower tax rate in 2016.

Cash Flow and Balance Sheet Items

Cash provided from operations in the third quarter of 2016 was $40.6 million compared with $35.0 million in the third quarter of 2015. Increased cash generation in the current year resulted from higher earnings and a lower investment in working capital, partly offset by higher pension contributions.

Capital spending was $20.8 million in the third quarter of 2016 compared with $13.1 million in the prior year. Increased spending in 2016 is due to an investment to increase transportation filtration capacity in the U.S. that is expected to be largely completed by year-end.

Debt as of September 30, 2016 was $211.2 million compared to $219.2 million at June 30, 2016 and $229.4 million on December 31, 2015. Cash and cash equivalents as of September 30, 2016 were $7.3 million compared with $4.5 million at June 30, 2016 and $4.2 million as of December 31, 2015.

Cash returns to shareholders through dividends and share repurchases totaled $8.3 million in the third quarter of 2016 and $7.3 million in the prior-year period.

Quarterly Segment Results

Technical Products net sales of $114.1 million increased 5 percent compared with $108.9 million in the prior year. The increase in revenues resulted from acquired sales and organic volume growth led by transportation filtration, and tape and abrasive backings. Sales growth due to higher volumes was only partly offset by lower net selling prices due to mix and modest reductions in selling prices for grades with contractual adjusters for certain input costs.

Operating income of $14.1 million in the third quarter of 2016 increased 28 percent compared with prior year income of $11.0 million. Higher operating income resulted from increased volume, improved manufacturing costs due to lower material prices, acquisition synergies and operational efficiencies, and reduced integration and restructuring costs. Combined, these items more than offset incremental SG&A from acquired operations and lower net selling prices.  Excluding integration costs of $0.1 million in 2016 and $1.1 million in 2015, adjusted operating income of $14.2 million increased 17 percent versus the prior year.

Fine Paper & Packaging net sales were $112.9 million in the third quarter of 2016, down 3 percent compared with $116.9 million in the prior year. The decrease in revenues resulted from a lower-priced mix of products sold and a decline in shipments. While quarterly sales volumes were the highest thus far in 2016, they included a higher proportion of non-branded products and compared with an all-time record quarter in 2015.

Operating income of $17.3 million in the third quarter of 2016 increased 1 percent from $17.2 million in the prior year. Higher operating income in 2016 resulted from lower manufacturing material prices and reduced SG&A and integration costs, that were mostly offset by a lower-priced mix of products sold and reduced shipments. Excluding integration costs of $0.3 million in 2016 and $0.9 million in 2015, adjusted operating income of $17.6 million decreased 3 percent versus the prior year.

Unallocated Corporate costs in the third quarter of 2016 were $4.6 million compared with $3.6 million in prior year period. Higher costs in 2016 resulted primarily due to non-capitalizable costs related to the transportation filtration project prior to its start up.

Year to Date

Consolidated net sales of $721.0 million for the nine months ended September 30, 2016 were $63.7 million (10%)  higher than the prior year period as revenues related to the FiberMark Acquisition and incremental volume growth more than offset lower net selling prices. 

Consolidated operating income of $92.2 million for the nine months ended September 30, 2016 increased $11.7 million (15%) from the prior year period.  The favorable comparison was primarily due to improved manufacturing costs resulting from lower materials prices, increased synergies and operational efficiencies, as well as higher sales volume. These favorable variances were partially offset by incremental acquired SG&A, higher integration and restructuring costs, and lower net selling prices.  Excluding integration and restructuring costs of $3.7 million and $2.9 million for 2016 and 2015, respectively, operating income increased $12.5 million (15%).

Net income from continuing operations of $57.0 million in 2016 increased 24 percent compared with $46.0 million in 2015 as a result of higher operating income, and lower interest and tax expenses. Lower tax rates in 2016 reflect R&D credits being recognized throughout the current year, compared with all in the fourth quarter of 2015. This difference in timing resulted from the U.S. Congress permanently extending these credits in December 2015. In addition, the adoption of ASU 2016-09 in the current period retrospectively increased net income for the first six months of 2016 by $0.9 million, or $0.04 per diluted common share, compared with previously reported amounts. For the nine months ended September 30, 2016, the effective income tax rate of 32 percent was consistent with the full-year rate for 2015.

Year to date earnings per diluted common share of $3.30 increased 23 percent from $2.68 in 2015. After excluding costs of $0.13 per share and $0.11 per share for integration and restructuring in 2016 and 2015, respectively, year-to-date adjusted earnings per share of $3.43 in 2016 increased 23 percent compared with the prior year.

Cash provided by operating activities of $97.7 million for the nine months ended September 30, 2016 was $18.2 million higher than cash provided by operating activities of $79.5 million in the prior year period.  The favorable comparison was primarily due to higher operating earnings and a decrease in our investment in working capital, partly offset by higher post-retirement benefit contributions in the current year. Cash generation in 2016 has been used for capital spending, debt reduction and returns to shareholders.

Capital expenditures for the nine months ended September 30, 2016 were $49.4 million compared to spending of $25.7 million in the prior year period. For 2016, we expect annual capital expenditures of approximately $75 million to exceed our normal level of spending due to incremental investments in filtration assets in the U.S. Capital spending is anticipated to return to an expected normal range of 3 to 5 percent of net sales in 2017.

Debt as of September 30, 2016 was reduced $20.4 million compared with December 31, 2015. Direct returns to shareholders, which include dividends and share repurchases, increased to $24.8 million in the first nine months of 2016 compared with $21.2 million through the first nine months of 2015.

While there were no Discontinued Operations in the third quarter of 2016, during the third quarter of 2015 a net loss of $7.4 million, or $0.43 per common share, was recognized in Discontinued Operations to record the estimated loss on the sale of the Lahnstein mill, which occurred on October 31, 2015. For the first nine months of both years, there was a net loss from Discontinued Operations of $0.4 million in 2016 and a net loss of $6.9 million in 2015.

Reconciliation to GAAP Measures

The Company will report adjustments to GAAP figures when they are believed to improve the comparability and understanding of results. In these instances, a reconciliation of adjusted income measures to comparable GAAP measures will be provided, as shown below and in the financial attachments:

Continuing Operations
		Third Quarter								YTD
$ millions		2016				2015				2016				2015
GAAP Operating Income		$	26.9			$	24.4			$	92.2			$	80.5
Integration/Restructuring Costs		1.2				2.9				3.7				2.9
Adjusted Operating Income		$	28.1			$	27.3			$	95.9			$	83.4
GAAP Income		$	16.4			$	13.5			$	57.0			$	46.0
Integration/Restructuring Costs		0.7				1.8				2.2				1.8
Adjusted Income		$	17.1			$	15.3			$	59.2			$	47.8
GAAP Earnings per Diluted Common Share		$	0.95			$	0.78			$	3.30			$	2.68
Integration/Restructuring Costs		0.04 Werbung Mehr Nachrichten zur Neenah Paper Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Invesco Bond Income Plus Ltd - Issue of Equity 24.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59