Kaydon Corporation (NYSE:KDN) today announced its results for the third fiscal quarter ended September 29, 2012.
Sales in the third quarter of 2012 were $123.8 million, compared to sales of $121.6 million in the third quarter of 2011. On a constant currency basis, revenues increased four percent in the third quarter of 2012.
The third quarter 2012 loss per share was $.99 compared to diluted earnings per share of $.45 in the third quarter of 2011. Adjusted earnings per share, as defined below, was $.44 in the third quarter of 2012, compared to $.50 in the third quarter of 2011. Adjusted results include charges related to the comprehensive restructuring of Kaydon’s wind energy bearings business, which was announced earlier this month.
Adjusted EBITDA, was $27.2 million, during the third quarter of 2012, compared to $29.8 million, during the third quarter of 2011. Adjusted gross margins were 34.9 percent during the third quarter of 2012, compared to 35.9 percent during the third quarter of 2011. Margins were impacted by inefficiencies associated with the ramp down of the two facilities affected by the restructuring.
This press release includes certain non-GAAP measures, including Adjusted net income, Adjusted earnings per share, EBITDA, Adjusted EBITDA and free cash flow. Readers should refer to the attached Reconciliation of Non-GAAP Measures exhibit for the reconciliations of the applicable GAAP measures to the non-GAAP measures presented.
Adjustments to GAAP results include certain items management considers in evaluating operating performance in each period. During the third quarter of 2012, such adjustments included the $46.0 million pre-tax charge associated with the recently announced restructuring of the company’s wind energy bearings business and the related impairment charge, $4.0 million of largely non-cash costs related to the recently completed wind customer arbitration, $0.4 million of due diligence and acquisition related purchase accounting costs and $1.3 million of non-cash amortization of previously incurred net actuarial losses related to postretirement benefit plans. During the third quarter, the Company offered certain former non-retiree employees with vested pension benefits the option of receiving a lump sum payment or an immediate annuity in settlement of all future pension obligations. This offer, described below, would further de-risk the Company’s pension obligations with no cash impact on operations.