OM GROUP INC

CIK:0000899723|SEC Filings

Unaudited Condensed Statements of Consolidated Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 228.4	$ 297.5	$ 476.2	$ 559.2
Cost of goods sold	174.6	234.4	372.1	434.2
Gross profit	53.8	63.1	104.1	125.0
Selling, general and administrative expenses	54.5	53.2	109.4	106.6
Operating profit (loss)	(0.7)	9.9	(5.3)	18.4
Other income (expense):
Interest expense	(0.6)	(0.6)	(1.2)	(1.3)
Foreign exchange gain (loss)	0.3	(0.9)	(4.1)	(1.2)
Gain (loss) on divestiture of Advanced Materials business	0.0	(0.8)	2.0	(1.0)
Charges associated with VAC arbitration conclusion	0.0	0.0	(10.4)	0.0
Other income (expense), net	(5.8)	(0.7)	(2.9)	(1.4)
Income (loss) from continuing operations before income tax	(6.8)	6.9	(21.9)	13.5
Income tax (benefit) expense	(15.2)	1.8	(19.1)	3.1
Income (loss) from continuing operations, net of tax	8.4	5.1	(2.8)	10.4
Loss from discontinued operations, net of tax	(0.1)	(0.3)	0.0	(0.3)
Consolidated net income (loss)	$ 8.3	$ 4.8	$ (2.8)	$ 10.1
Earnings (loss) per common share — basic:
Income (loss) from continuing operations (in dollars per share)	$ 0.28	$ 0.16	$ (0.09)	$ 0.33
Income (loss) from discontinued operations (in dollars per share)	0.00	(0.01)	0.00	(0.01)
Net income (loss) (in dollars per share)	0.28	0.15	(0.09)	0.32
Earnings (loss) per common share — assuming dilution:
Income (loss) from continuing operations (in dollars per share)	0.27	0.16	(0.09)	0.33
Income (loss) from discontinued operations (in dollars per share)	0.00	(0.01)	0.00	(0.02)
Net income (loss) (in dollars per share)	$ 0.27	$ 0.15	$ (0.09)	$ 0.31
Weighted average shares outstanding
Basic (in shares)	30.4	31.5	30.4	31.5
Assuming dilution (in shares)	30.7	31.8	30.4	31.9
Dividends declared per common share (in dollars per share)	$ 0	$ 0.075	$ 0.0825	$ 0.15

Unaudited Condensed Statements of Consolidated Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Consolidated net income (loss)	$ (2.8)	$ 10.1
Adjustments to reconcile consolidated net income (loss) to net cash used for operating activities:
Loss from discontinued operations	0.0	0.3
Depreciation and amortization	29.7	36.4
Amortization of deferred financing fees	0.6	0.5
Share-based compensation expense	5.9	4.4
Foreign exchange loss	4.1	1.2
(Gain) loss on divestiture of Advanced Materials business	(2.0)	1.0
Deferred income tax benefit	(3.0)	(1.8)
Other non-cash items	(6.1)	3.0
Changes in operating assets and liabilities:
Accounts receivable	(5.4)	(20.3)
Inventories	(3.0)	(4.5)
Accounts payable	(16.5)	(6.1)
Other, net	(0.8)	(2.4)
Net cash provided by operating activities	0.7	21.8
Investing activities
Expenditures for property, plant and equipment	(10.6)	(10.8)
Cash received from acquisition purchase price adjustments	2.2	0.0
Proceeds from sale of property	1.2	1.0
Net cash used for investing activities	(7.2)	(9.8)
Financing activities
Payments related to VAC purchase price payable	(41.8)	0.0
Net payments on revolving credit facility	(10.1)	0.0
Dividends paid	(2.5)	(4.8)
Proceeds from exercise of stock options	7.8	0.5
Debt issuance costs	(0.1)	(0.1)
Payment related to surrendered shares	(0.5)	(0.7)
Payments for Repurchase of Common Stock	0.0	(10.0)
Net cash used for financing activities	(47.2)	(15.1)
Effect of exchange rate changes on cash	(2.1)	(0.2)
Cash and cash equivalents
Decrease from continuing operations	(55.8)	(3.3)
Discontinued operations - net cash used by operating activities	(0.1)	(0.8)
Balance at the beginning of the period	91.7	118.4
Balance at the end of the period	$ 35.8	$ 114.3

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 35.8	$ 91.7
Accounts receivable, less allowance of $2.4 in 2015 and $2.5 in 2014	133.6	134.5
Inventories	218.8	228.4
Other current assets	38.7	21.5
Total current assets	426.9	476.1
Property, plant and equipment, net	281.7	308.3
Goodwill	248.1	252.6
Intangible assets, net	299.7	324.8
Other non-current assets	43.5	57.7
Total assets	1,299.9	1,419.5
Current liabilities
Revolving credit facility	2.4	12.5
Accounts payable	55.0	74.7
Accrued employee costs	39.9	34.9
Purchase price of VAC payable to seller	4.1	46.2
Other current liabilities	55.0	57.4
Total current liabilities	156.4	225.7
Deferred income taxes	67.5	74.8
Pension liabilities	229.4	244.4
Other non-current liabilities	30.0	37.7
Stockholders’ equity:
Preferred stock, $.01 par value: Authorized 2,000,000 shares, no shares issued or outstanding	0.0	0.0
Common stock, $.01 par value: Authorized 90,000,000 shares; 32,742,185 shares issued in 2015 and 32,408,222 shares issued in 2014	0.3	0.3
Capital in excess of par value	660.3	647.3
Retained earnings	400.1	405.3
Treasury stock (2,151,866 shares in 2015 and 2,136,116 shares in 2014, at cost)	(58.7)	(58.2)
Accumulated other comprehensive loss	(185.4)	(157.8)
Total stockholders' equity	816.6	836.9
Total liabilities and and stockholders' equity	$ 1,299.9	$ 1,419.5