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ATLANTA--(BUSINESS WIRE)-- Axiall Corporation (AXLL) today announced financial results for the quarter ended June 30, 2014.

The company reported net sales of $1,236.9 million for the second quarter of 2014, compared to net sales of $1,272.8 million reported for the second quarter of 2013. The company reported Net Income attributable to Axiall of $27.2 million, or $0.38 diluted earnings per share, for the second quarter of 2014, compared to Net Income attributable to Axiall of $72.8 million, or $1.03 diluted earnings per share, for the second quarter of 2013. The company reported Adjusted Net Income of $33.5 million and Adjusted Earnings per Share of $0.48 for the second quarter of 2014, compared to Adjusted Net Income of $84.0 million and Adjusted Earnings per Share of $1.19 for the second quarter of 2013. The company reported Adjusted EBITDA of $128.1 million for the second quarter of 2014, compared to Adjusted EBITDA of $197.9 million for the second quarter of the prior year.

Our second-quarter results were primarily impacted by lower ECU values and the unplanned outage at our PHH VCM facility, President and CEO Paul Carrico said. In our Building Products segment, we experienced a normal seasonal increase in sales volumes but continued to see weaker Canadian sales and the impact of a weaker Canadian dollar during the period. Additionally, our Aromatics results are lower than the second quarter of 2013 due to lower operating rates and lower margins.

Our top priority remains the safe, reliable operation of our plants, and we have taken clear steps to reinforce operational excellence throughout our organization, Carrico said.

 

Adjusted Net Income Reconciliation

       
Three Months Ended Six Months Ended
June 30, June 30,

(In millions, except per share data)

2014     2013 2014     2013
Net income attributable to Axiall $ 27.2 $ 72.8 $ 15.6 $ 69.3
Pretax charges:
Fair value of inventory purchase accounting - 3.2 - 13.4
Merger-related and other, net 7.1 3.5 11.7 12.9
Costs to attain Merger-related synergies 2.3 11.3 6.9 12.0
Long-lived asset impairment charges, net 0.1 - 0.7 2.6
Gain on acquisition of controlling interests - - - (23.5 )
Loss on redemption and other debt costs   -   -   -   78.5  
Total pretax charges 9.5 18.0 19.3 95.9
Provision for taxes related to these items   3.2   6.8   6.7   36.1  
After tax effect of above items   6.3   11.2   12.6   59.8  
Adjusted Net Income $ 33.5 $ 84.0 $ 28.2 $ 129.1  
 
Diluted earnings per share attributable to Axiall $ 0.38 $ 1.03 $ 0.22

$

1.06

 
Adjusted Earnings Per Share $ 0.48 $ 1.19 $ 0.40 $ 1.98
 
Adjusted EBITDA $ 128.1 $ 197.9 $ 195.8 $ 331.3
 

Chlorovinyls

In the Chlorovinyls segment, second-quarter 2014 net sales were $777.9 million compared to $801.8 million during the second quarter of 2013. The 3 percent decrease was principally due to substantially lower ECU pricing and lower sales volumes due to the PHH VCM facility outage which began in December 2013, partially offset by higher PVC pricing. The PHH VCM facility returned to full service at the end of June 2014. The segment posted Adjusted EBITDA of $121.6 million in the second quarter of 2014, compared to Adjusted EBITDA of $177.6 million for the same quarter in the prior year. The $56.0 million decrease was principally due to:

  • Substantially lower ECU values,
  • lower operating rates and higher maintenance costs that were primarily caused by the unplanned outage at our PHH VCM facility, and
  • higher natural gas costs.

These were partially offset by higher PVC pricing and synergies.

Building Products

In the Building Products segment, net sales were $243.8 million for the second quarter of 2014, compared to $244.5 million for the same quarter in the prior year. The net sales decreased slightly primarily due to the impact of a weaker Canadian dollar and weaker sales volumes in Canada, partially offset by higher U.S. sales volumes. On a constant currency basis, Building Products net sales for the quarter increased by 3 percent. The segment reported Adjusted EBITDA of $24.7 million for the second quarter of 2014, compared to $28.2 million of Adjusted EBITDA during the same quarter of the prior year. The decrease in Adjusted EBITDA was primarily due to the impact of the weaker Canadian dollar, higher distribution costs and higher selling related expenditures.

Aromatics

In the Aromatics segment, net sales decreased to $215.2 million for the second quarter of 2014 from $226.5 million for the second quarter of 2013. During the second quarter of 2014, the segment recorded Adjusted EBITDA of negative $7.0 million, compared to Adjusted EBITDA of $4.6 million during the same quarter in 2013. The decreases in sales and Adjusted EBITDA were primarily due to lower export sales volumes of phenol driven by significant new phenol capacity additions in Asia during 2013, which also resulted in lower domestic cumene sales volume.

Conference Call

The company will discuss second-quarter financial results, business developments and outlook via conference call and webcast on Wednesday, August 6, at 10:00 a.m. Eastern time. To access the company's second-quarter conference call, please dial (877) 820-5027 (domestic) or (706) 645-4014 (international). Playbacks will be available from 11:00 a.m. Eastern time on Wednesday, August 6, until 11:30 p.m. Eastern time on Tuesday, August 20. Playback numbers are (855) 859-2056 or (800) 585-8367. The conference call ID number is 81925244.

About Axiall

Axiall Corporation is a leading integrated chemicals and building products company. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers. For more information, visit www.axiall.com.

Cautionary Statements About Forward-Looking Information

This press release contains certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future. Any such statements other than statements of historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words or phrases such as anticipate, believe, plan, estimate, project, may, will, intend, target, expect, would or could (including the negative variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These statements relate to, among other things: foreign currency exchange rates; expected growth of our businesses and products; our results of operations; our financial and operational performance, our business prospects and opportunities and other statements of expectations concerning matters that are not historical facts. These statements are based on the current expectations of our management. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements included in this press release. These risks and uncertainties include, among other things: changes, seasonality and/or cyclicality in the industries in which our products are sold and changes in demand for our products or increases in overall industry capacity that could affect production volumes and/or pricing; the costs and operating restrictions associated with compliance with current and future environmental, health and safety laws and regulations; the availability and pricing of energy and raw materials; risks, hazards and potential liabilities associated with manufacturing chemicals and building products; changes in the general economy, including the impacts of the current, and any potential future, economic uncertainties in the housing and construction markets; our level of indebtedness and debt service obligations and ability to continue to comply with the covenants in the ABL Credit Agreement, the Term Loan agreement and the indentures governing the 4.875 Notes and the 4.625 Notes; our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation; risks, costs, liabilities, pension and post-retirement welfare benefit obligations, unexpected delays and operating restrictions associated with integrating the Merged Business; competition within our industry; the integration of the Merged Business with the businesses we operated prior to the Transactions not being successful; complications resulting from our multiple enterprise resource planning (ERP) systems and the implementation of our new ERP systems; strikes and work stoppages relating to the workforce under collective bargaining agreements; any impairment of goodwill, indefinite-lived intangible assets or other intangible assets; the failure to realize the benefits of, and/or disruptions resulting from, any asset dispositions, asset acquisitions, joint ventures, business combinations or other transactions, including our merger with the chemicals business of PPG Industries; shared control of our joint ventures with unaffiliated third parties, including the ability of such joint venture partners to fulfill their obligations; fluctuations in foreign currency exchange and interest rates; the significant restrictions on our business operations set forth in the agreements related to our merger with the chemicals business of PPG Industries; and the failure to adequately protect our data and technology systems.

In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this press release may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Axialls actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Axiall and its business, see Axialls Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and subsequent filings with the SEC (SCUR). As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axiall does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events, or changes in its expectations, except as required by law.

 
 
AXIALL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
    June 30,       December 31,

(In millions, except share data)

2014 2013
Assets:
Cash and cash equivalents $ 62.7 $ 166.5

Receivables, net of allowance for doubtful accounts of $5.7 million at June 30, 2014 and $5.5 million at December 31, 2013.

615.6 548.8
Inventories 423.1 403.6
Prepaid expenses and other 28.7 31.6
Deferred income taxes   25.6   18.0
Total current assets 1,155.7 1,168.5
Property, plant and equipment, net 1,663.0 1,658.7
Goodwill 1,763.4 1,763.2
Customer relationships, net 1,069.3 1,101.8
Other intangible assets, net 70.5 72.9
Other assets, net   105.8   112.1
Total assets $ 5,827.7 $ 5,877.2
Liabilities and Equity:
Current portion of long-term debt $ 16.5 $ 2.8
Accounts payable 362.7 313.7
Interest payable 15.2 15.4
Income taxes payable 9.2 17.1
Accrued compensation 29.6 61.5
Other accrued current liabilities   117.2   132.6
Total current liabilities 550.4 543.1
Long-term debt, excluding the current portion of long-term debt 1,328.8 1,330.0
Lease financing obligation 102.0 104.7
Deferred income taxes 844.6 865.5
Pensions and other postretirement benefits 122.5 129.8
Other non-current liabilities   166.7   175.8
Total liabilities   3,115.0   3,148.9
 
Commitments and contingencies
 
Equity:
Preferred stock$0.01 par value; 75,000,000 shares authorized; no shares issued - -

Common stock$0.01 par value; shares authorized: 200,000,000 at June 30, 2014 and December 31, 2013; issued and outstanding: 70,181,015 at June 30, 2014 and 69,890,666 at December 31, 2013.

0.7 0.7
Additional paid-in capital 2,274.6 2,272.6
Retained earnings 262.2 269.3
Accumulated other comprehensive income, net of tax   62.9   66.3
Total Axiall stockholders equity 2,600.4 2,608.9
Noncontrolling interest   112.3   119.4
Total equity   2,712.7   2,728.3
Total liabilities and equity $ 5,827.7 $ 5,877.2
 
 
AXIALL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
         
Three Months Ended June 30, Six Months Ended June 30,

(In millions, except per share data)

2014     2013 2014     2013
Net sales $ 1,236.9 $ 1,272.8 $ 2,230.6 $ 2,334.0
Operating costs and expenses:
Cost of sales 1,090.0 1,062.8 2,003.3 1,971.8
Selling, general and administrative expenses 79.0 76.6 152.6 144.9
Transaction-related costs and other, net 9.4 8.8 16.0 18.9
Long-lived asset impairment charges, net   0.1   -   0.7   2.6
Total operating costs and expenses   1,178.5   1,148.2   2,172.6   2,138.2
Operating income 58.4 124.6 58.0 195.8
Interest expense, net

(19.1)

(19.4)

(37.4)

(37.7)

Loss on redemption and other debt costs - - -

(78.5)

Gain on acquisition of controlling interest - - - 23.5
Foreign exchange gain (loss)  

(0.3)

  0.3   0.1   0.4
Income before income taxes 39.0 105.5 20.7 103.5
Provision for income taxes   10.9   31.8   3.2   32.6
Consolidated net income 28.1 73.7 17.5 70.9
Less net income attributable to noncontrolling interest   0.9   0.9   1.9   1.6
Net income attributable to Axiall $ 27.2 $ 72.8 $ 15.6 $ 69.3
 
Income per share attributable to Axiall:

Basic

$ 0.39 $ 1.04 $ 0.22 $ 1.07
Diluted $ 0.38 $ 1.03 $ 0.22 $ 1.06
 
Weighted average common shares outstanding:
Basic 70.0 69.9 70.0 64.6
Diluted 70.6 70.4 70.6 65.1
 
Dividends per common share $ 0.16 $ 0.08 $ 0.32 $ 0.16
 
 

AXIALL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

         
Three Months Ended June 30, Six Months Ended June 30,

(In millions)

2014     2013 2014     2013
Cash flows from operating activities:
Consolidated net income $ 28.1 $ 73.7 $ 17.5 $ 70.9

Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:

Depreciation 44.6 38.4 86.8 67.8
Amortization 18.9 19.6 37.4 32.5
Loss on redemption and other debt costs - - - 78.5
Gain on acquisition of controlling interest - - - (23.5)
Long-lived asset impairment charges, net 0.1 - 0.7 2.6
Other non-cash items 5.8 0.7 9.6 8.1
Deferred income taxes (15.3) (12.5) (24.8) (10.8)

Change in operating assets and liabilities, and other (excluding effects of acquisition)

  (44.2)   (49.9)   (111.0)   (260.9)
Net cash provided by (used in) operating activities   38.0   70.0   16.2   (34.8)
Cash flows from investing activities:
Capital expenditures (44.7) (39.2) (87.7) (55.6)
Acquisitions, net of cash acquired (5.8) - (5.8) 26.7

Proceeds from insurance recoveries and other

 

1.6

  -  

1.7

  -
Net cash used in investing activities   (48.9)   (39.2)   (91.8)   (28.9)
Cash flows from financing activities:
Borrowings on ABL revolver 148.9 179.8 148.9 402.5
Repayments on ABL revolver (135.2) (213.6) (135.2) (297.3)
Issuance of long-term debt - - - 450.0
Long-term debt payments (1.0) (0.7) (1.7) (530.4)
Lease financing obligation payment (2.3) - (2.3) -

Make-whole and other fees paid related to financing activities

(0.6) (0.6) (0.6) (95.0)
Dividends paid (11.4) (5.6) (22.6) (5.6)
Distribution to noncontrolling interest (7.7) (13.3) (7.7) (13.3)
Excess tax benefits from share-based payment arrangements 1.5 0.6 2.0 0.7
Stock compensation plan activity   (6.2)   (1.3)   (6.7)   (1.3)
Net cash used in financing activities   (14.0)   (54.7)   (25.9)   (89.7)
Effect of exchange rate changes on cash and cash equivalents   1.1   (1.0)   (2.3)   (2.6)
Net change in cash and cash equivalents (23.8) (24.9) (103.8) (156.0)
Cash and cash equivalents at beginning of period   86.5   69.2   166.5   200.3
Cash and cash equivalents at end of period $ 62.7 $ 44.3 $ 62.7 $ 44.3
 
 

Significant non-cash transactions

On January 28, 2013 we acquired substantially all of the assets and liabilities of PPG Industries, Inc.s (PPG) business relating to the production of chlorine, caustic soda and related chemicals, through a merger between a subsidiary of PPG and a subsidiary of the Company. The purchase price for these transactions was approximately $2.8 billion and consisted of: (i) the issuance of approximately 35.2 million shares of our common stock valued at approximately $1.8 billion; (ii) the assumption of $967.0 million of debt; and (iii) the assumption of certain other liabilities including pension and other postretirement obligations.

 
AXIALL CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
       
Three Months Ended June 30, Six Months Ended June 30,

(In millions)

2014       2013 2014       2013
Sales
Chlorovinyls products $ 777.9 $ 801.8 $ 1,460.1 $ 1,416.3
Building products 243.8 244.5 398.5 406.7
Aromatics products   215.2     226.5     372.0     511.0  
Net sales $ 1,236.9   $ 1,272.8   $ 2,230.6   $ 2,334.0  
Operating income (loss)
Chlorovinyls products $ 66.6 $ 118.2 $ 89.9 $ 209.4
Building products 14.2 19.6 3.4 5.8
Aromatics products (7.4 ) 4.3 (2.9 ) 17.3
Unallocated corporate   (15.0 )   (17.5 )   (32.4 )   (36.7 )
Total operating income (loss) $ 58.4   $ 124.6   $ 58.0   $ 195.8  
 

Reconciliation of Non-GAAP Financial Measures

Axiall has supplemented its financial statements prepared in accordance with GAAP with four non-GAAP financial measures: (i) Adjusted Net Income; (ii) Adjusted Earnings Per Share; (iii) Adjusted EBITDA; and (iv) building products net sales on a constant currency basis.

Adjusted Net Income is defined as Net income attributable to Axiall excluding adjustments for tax effected cash and non-cash restructuring charges and certain other charges, if any, related to financial restructuring and business improvement initiatives, gains or losses on redemption and other debt costs, and sales of certain assets, certain purchase accounting and certain non-income tax reserve adjustments, professional fees related to a previously disclosed and withdrawn unsolicited offer and the Merger, costs to attain Merger-related synergies, goodwill, intangibles, and other long-lived asset impairments.

Adjusted Earnings Per Share is calculated using Adjusted Net Income rather than consolidated net income calculated in accordance with GAAP.

Adjusted EBITDA is defined as Earnings Before Interest, Taxes, Depreciation, and Amortization, cash and non-cash restructuring charges and certain other charges, if any, related to financial restructuring and business improvement initiatives, gains or losses on redemption and other debt costs, and sales of certain assets, certain purchase accounting and certain non-income tax reserve adjustments, professional fees related to a previously disclosed and withdrawn unsolicited offer and the Merger, costs to attain Merger-related synergies, goodwill, intangibles, and other long-lived asset impairments, and interest expense related to the lease-financing transaction discussed in Note 8 to the accompanying unaudited condensed consolidated financial statements.

Axiall has supplemented the Financial Statements with Adjusted Net Income and Adjusted Earnings Per Share because investors commonly use financial measures such as Adjusted Net Income and Adjusted Earnings Per Share as a component of performance and valuation analysis for companies, such as Axiall, that recently have engaged in transactions that result in non-recurring pre-tax charges or benefits that have a significant impact on the calculation of net income pursuant to GAAP, in order to approximate the amount of net income that such a company would have achieved absent those non-recurring, transaction- related charges or benefits. In addition, Axiall has supplemented the Financial Statements with Adjusted Net Income and Adjusted Earnings Per Share because we believe these financial measures will be helpful to investors in approximating what Axialls net income would have been absent the impact of certain non- recurring, pre-tax charges and benefits related to the Merger, the companys issuance of its 4.875 Notes and the Tender Offer and related redemption of its 9 percent notes. Axiall has supplemented the Financial Statements with Adjusted EBITDA because investors commonly use Adjusted EBITDA as a main component of valuation analysis of cyclical companies such as Axiall.

In addition, Axiall may compare certain financial information including building products net sales on a constant currency basis. We present such information to provide a framework for investors to assess how our underlying businesses performed, excluding the effect of foreign currency rate fluctuations, primarily fluctuations in the Canadian dollar. To present this information, current and comparative prior period financial information for certain businesses reporting in currencies other than United States dollars are converted into United States dollars at the average exchange rate in effect during the period, rather than the average exchange rates in effect during the respective periods.

Adjusted Earnings Per Share, Adjusted Net Income, Adjusted EBITDA and building products net sales on a constant currency basis, are not measurements of financial performance under GAAP and should not be considered as an alternative to net income, GAAP diluted earnings per share or Net Sales, as a measure of performance or to cash provided by operating activities as a measure of liquidity. In addition, our calculation of Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDA and building products net sales on a constant currency basis, may be different from the calculation used by other companies and, therefore, comparability may be limited. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are presented in the tables set forth below.

 

Adjusted Earnings Per Share Reconciliation

       
Three Months Ended Six Months Ended
June 30, June 30,
2014     2013 2014     2013
Diluted earnings per share attributable

to Axiall

$ 0.38 $ 1.03 $ 0.22 $ 1.06
Earnings per share related to

adjustments between net income

attributable to Axiall and Adjusted

Net Income

  0.10   0.16   0.18   0.92
Adjusted Earnings Per Share $ 0.48 $ 1.19 $ 0.40 $ 1.98
 

 

Building Products Constant Currency Sales Reconciliation

 

Three Months Ended June 30,

Six Months Ended June 30,

(In millions)

2014 2013 2014 2013
Building Products net sales $ 243.8 $ 244.5 $ 398.5 $ 406.7
Impact of currency exchange rates   7.3   -   13.0   -
Building Products constant currency sales $ 251.1 $ 244.5 $ 411.5 $ 406.7
 

Adjusted EBITDA Reconciliations

Three Months Ended June 30, 2014

                 
 
Unallocated
Corporate &
Building Non-operating

(In millions)

Chlorovinyls   Products   Aromatics   expenses, net   Total
 
Adjusted EBITDA $ 121.6 $ 24.7 $ (7.0 ) $ (11.2 ) $ 128.1
Costs to attain Merger-related synergies (0.3 ) - - (2.0 ) (2.3 )
Long-lived asset impairment charges, net - (0.1 ) - - (0.1 )
Depreciation and amortization (51.9 ) (8.7 ) (0.4 ) (2.5 ) (63.5 )
Interest expense, net - - - (19.1 ) (19.1 )
Provision for income taxes - - - (10.9 ) (10.9 )
Other   (3.0 )   (1.8 )   -     0.7     (4.1 )

(a)

Consolidated net income (loss) (b)

$ 66.4   $ 14.1   $ (7.4 ) $ (45.0 ) $ 28.1  

(a)

 

Includes $7.1 million Merger-related and other, net, partially offset by $1.6 million of lease financing obligations interest and $1.4 million for debt issuance cost amortization.

(b)

Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services, and provision for income taxes.

Three Months Ended June 30, 2013

 
        Unallocated    
Corporate &
Building Non-operating

(In millions)

Chlorovinyls Products Aromatics expenses, net Total
 
Adjusted EBITDA $ 177.6 $ 28.2 $ 4.6 $ (12.5 ) $ 197.9
Costs to attain Merger-related synergies (7.5 ) (a) - - (3.8 ) (11.3 )
Depreciation and amortization (47.5 ) (8.6 ) (0.3 ) (1.6 ) (58.0 )
Interest expense, net - - - (19.4 ) (19.4 )
Benefit from income taxes - - - (31.8 ) (31.8 )
Other   (3.6 )   -     -     (0.1 )   (3.7 ) (b)
Consolidated net income (c) $ 119.0   $ 19.6   $ 4.3   $ (69.2 ) $ 73.7  

(a)

 

Includes $5.9 million of plant reliability improvement initiatives that are included in cost of sales on our condensed consolidated statements of operations.

(b)

Includes $3.5 million Merger-related and other, net, and $3.2 million of inventory fair value purchase accounting adjustment, partially offset by $1.8 million of lease financing obligations interest and $1.2 million for debt issuance cost amortization.

(c)

Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services, and provision for income taxes.

Six Months Ended June 30, 2014  
 

 

        Unallocated    
Corporate &
Building Non-operating

(In millions)

Chlorovinyls Products Aromatics expenses, net Total
 
Adjusted EBITDA $ 197.8 $ 24.7 $ (2.1 ) $ (24.6 ) $ 195.8
Costs to attain Merger-related synergies (3.5 ) (a) - - (3.4 ) (6.9 )
Long-lived asset impairment charges, net - (0.7 ) - - (0.7 )
Depreciation and amortization (101.5 ) (17.4 ) (0.8 ) (4.5 ) (124.2 )
Interest expense, net - - - (37.4 ) (37.4 )
Provision for income taxes - - - (3.2 ) (3.2 )
Other   (3.0 )   (3.0 )   -     0.1     (5.9 ) (b)
Consolidated net income (loss) (c) $ 89.8   $ 3.6   $ (2.9 ) $ (73.0 ) $ 17.5  

(a)

 

Includes $2.5 million of plant reliability improvement initiatives that are included in cost of sales on our condensed consolidated statements of operations.

(b)

Includes $11.7 million in Merger-related and other, net, offset by $3.3 million of lease financing obligations interest and $2.5 million for debt issuance cost amortization expense.

(c)

Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services, and provision for income taxes.

Six Months Ended June 30, 2013                  
  Unallocated
Corporate &
Building Non-operating

(In millions)

Chlorovinyls Products   Aromatics expenses, net Total
 
Adjusted EBITDA $ 311.8 $ 25.7 $ 17.8 $ (24.0 ) $ 331.3
Costs to attain Merger-related synergies (8.2 ) (a) - - (3.8 ) (12.0 )
Long-lived asset impairment charges, net - (2.6 ) - - (2.6 )
Depreciation and amortization (79.0 ) (17.4 ) (0.6 ) (3.3 ) (100.3 )
Interest expense, net - - - (37.7 ) (37.7 )
Gain on acquisition of controlling interest 23.5 - - - 23.5
Loss on redemption and other debt cost, net - - - (78.5 ) (78.5 )
Provision for income taxes - - - (32.6 ) (32.6 )
Other   (14.4 )   0.2     0.1     (6.1 )   (20.2 ) (b)
Consolidated net income (c) $ 233.7   $ 5.9   $ 17.3   $ (186.0 ) $ 70.9  

(a)

 

Includes $5.9 million of plant reliability improvement initiatives that are included in cost of sales on our condensed consolidated statements of operations.

(b)

Includes $12.8 million of Merger-related and other, net, and $13.4 million of inventory fair value purchase accounting adjustment, partially offset by $3.6 million of lease financing obligations interest and $2.4 million for debt issuance cost amortization expense.

(c)

Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services, and provision for income taxes.

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Axiall Corporation
Investor Relations
Martin Jarosick, 770-395-4524
or
Media
Alan Chapple, 770-395-4538

Source: Axiall Corporation

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