HIGHLIGHTS - Q2 2018 vs. Q2 2017
GAAP Financials
• Net sales of $186.4 million, up $11.5 million, or 6.6%
? Favorable foreign currency translation of $5.8 million, or 3.3%
• Gross margin of 19.4%, down 540 basis points
• Operating margin of 6.6%, down 490 basis points
• Earnings per share ("EPS") of $0.60 compared to $0.76
Non-GAAP Financial Measures*
• Organic sales growth of 2.3%
• Adjusted gross margin of 19.9%, down 520 basis points
• Adjusted operating margin of 7.7%, down 420 basis points
• Adjusted EPS of $0.70 compared to adjusted $0.80 per share
• Adjusted EBITDA margin of 11.7%, down 340 basis points
Dale G. Barnhart, President and Chief Executive Officer, stated, “Sales increased 6.6%, with organic sales growth of 2.3%, led by the Performance Materials and Technical Nonwovens segments. Our results reflect the negative impact of approximately $2.2 million from a supplier fire which forced temporary shutdowns of certain Thermal Acoustical Solutions customers, reducing both our sales and profits. The Thermal Acoustical Solutions segment also faced cost pressures during the quarter which predominantly drove the reduction in consolidated margins quarter-on-quarter. Increased commodity costs, primarily aluminum, and greater labor and outsourced manufacturing costs, impacted by major platform launches, reduced margins. However, the segment saw operational improvement compared to first quarter 2018 primarily from lower expedited freight expenses on customer shipments."
