WALTHAM, Mass., Aug. 6, 2013 /PRNewswire/ -- Steinway
Musical Instruments, Inc. (NYSE: LVB) today announced its financial
results for the second quarter and six months ended June 30, 2013.
Net sales for the second quarter of 2013 totaled $92.4 million compared to $85.7 million for the prior-year quarter.
The Company reported net income of $20.2 million, or $1.60 per diluted share, for the second quarter
of 2013 compared to $2.4 million, or $0.19 per diluted share, for the second quarter
of 2012.
During the second quarter of 2013, the Company recognized a net
$22.7 million gain on the sale
of its West 57th Street office building and $0.5 million in impairment charges related
to its online music business. Before giving effect to those items,
second quarter net income was $4.5 million, or $0.35 per diluted share.
CEO Michael Sweeney commented on
the quarter, "We delivered solid results, improving total revenues
by 8% while boosting gross margin by 200 basis points and Adjusted
EBITDA by 42%. We're especially pleased with our double-digit
increase in piano sales. Both our band and piano divisions turned
in strong operating performances this quarter.
"At the end of June, we achieved a major objective with the sale
of Steinway Hall. Shortly thereafter, we redeemed our Senior Notes,
paying down all of the Company's long-term debt. With these actions
completed, we can now concentrate all our efforts on achieving our
operational objectives and continuing our heritage of offering the
world's finest musical instruments."
SECOND QUARTER RESULTS
Piano Operations
Second quarter revenue increased to $56.8 million, or 12.7%, over the prior-year
quarter due to strong wholesale piano sales. Worldwide, unit
shipments of Steinway grand pianos increased 20.7% and Boston and Essex piano shipments rose 21.0%. In the
Americas and Europe, revenue
increased 18.2% and 19.6%, respectively, while exchange rate
changes negatively impacted revenue in the Asia-Pacific region. Without these changes,
revenue from the region would have been stable.
On a combined basis, production at the Company's New York and Hamburg factories rose approximately 25% over
the prior-year quarter, helping meet the increased demand for
Steinway pianos. Overall gross margin increased 80 basis points
over the prior year. The gross margin improvement that results from
higher production levels was somewhat offset by lower revenue from
the Company's retail operations during the quarter. Training
processes in the Company's Hamburg
factory progressed during the second quarter, resulting in gross
margin improvement of 160 basis points over the first quarter of
2013.
Band Operations
Revenues for the second quarter totaled $35.6 million, an increase of 0.7% over the
prior-year period. Results were mixed, with a 2.2% increase in
student unit shipments and a 2.7% decrease in professional unit
sales. Strong sales of background brass instruments and higher
sales of drum outfits offset lower sales of accessories.
Gross margin improved 310 basis points over the second quarter
of 2012. Firm control over manufacturing costs allowed price
increases to directly benefit gross profit. A higher mix of
brass instruments and more efficient production also contributed to
the improvement.
Operating Expenses
Operating expenses for the quarter increased $1.3 million over the prior-year period. For
the second quarter, legal and consulting fees associated with the
Company's evaluation of strategic alternatives were $2.4 million in 2013 and $1.9 million in 2012. Excluding these costs
and $0.5 million and
$0.2 million in impairment
charges from each period, respectively, operating expenses were up
2.7%.
YTD RESULTS
Piano Operations
Year-to-date, revenue increased 8.1% over the prior-year period,
to $102.2 million. Sales in the
Americas were robust, up 18.5%, while sales in the Company's
Europe and Asia-Pacific regions were on par with prior
year. Worldwide, unit shipments of Steinway grand pianos increased
9.2% and Boston and Essex piano shipments increased 22.2%. Overall
gross margin improved 90 basis points over the prior-year period,
somewhat less than expected due to the higher mix of lower-margin
pianos.
Band Operations
Year-to-date, revenue decreased 3.1% from the prior-year period,
to $67.0 million. Increased
revenue from brass instruments mitigated lower sales of accessories
and percussion instruments. Relatively stable manufacturing costs,
coupled with price increases, contributed to an increase in gross
margin of 450 basis points over the prior-year period. A higher mix
of professional instruments and more efficient production also
contributed to the increase.
Capitalization
As of June 30, 2013, the Company's
cash balance totaled $106.5 million. This amount included net
cash proceeds of approximately $43.3 million from the sale of the Company's
interest in the West 57th Street building, which closed
on June 28, 2013. The Company
realized a pre-tax gain of $22.7 million on the sale. On July 15, 2013, the Company completed its
redemption of $67.5 million in
aggregate principal amount of its 7% Senior Notes due 2014. As a
result, the Company has no remaining long-term debt.
Merger Agreement with Kohlberg & Company
On June 30, 2013, Steinway entered
into a definitive agreement to be acquired by an affiliate of
Kohlberg & Company ("Kohlberg"), a global private equity
investment firm, in a transaction valued at approximately
$438 million. Upon the completion of the transaction, the
Company will become a privately held company. The agreement
provides for a 45-day "go-shop" period, which will end on
August 14, 2013, during which time
the Company may solicit alternative proposals to the transaction
with Kohlberg. Any shares not tendered in the offer will be
acquired in a second-step merger at the same cash price as paid in
the tender offer. The transaction is expected to close in the third
quarter of 2013.
Upon the successful closing of the tender offer, stockholders of
the Company who tender their shares in the tender offer will
receive $35.00 per share, in cash,
payable without interest and less any applicable withholding taxes.
This represents a premium of approximately 33% based on the average
closing price of the Company's common stock during the 90 trading
days ended June 28, 2013.
Conference Call
In light of its pending acquisition by an affiliate of Kohlberg,
the Company will not host a conference call relating to its second
quarter 2013 financial results.
About Steinway Musical Instruments
Steinway Musical Instruments, Inc., through its Steinway and
Conn-Selmer divisions, is a global leader in the design,
manufacture, marketing and distribution of high quality musical
instruments. These products include Bach Stradivarius trumpets,
Selmer Paris saxophones,
C.G. Conn French horns, Leblanc clarinets, King trombones,
Ludwig snare drums and Steinway & Sons pianos. Through its
online music retailer, ArkivMusic, the Company also produces and
distributes classical music recordings. For more information about
Steinway Musical Instruments, Inc., please visit the Company's
website at www.steinwaymusical.com.
Non-GAAP Financial Measures Used by Steinway Musical
Instruments
The Company uses the non-GAAP measurement Adjusted EBITDA, which
it defines as earnings before net interest expense, income taxes,
depreciation and amortization, adjusted to exclude non-recurring,
infrequent, or unusual items (if any). The Company uses Adjusted
EBITDA because it is useful to management and investors as a
measure of the Company's core operating performance in that it
eliminates the impact of items that are unrelated to how well the
Company is completing its manufacturing and operating
responsibilities. In addition, the Company uses Adjusted EBITDA as
the basis for determining bonuses for its managers. The Company
also believes Adjusted EBITDA is helpful in determining the
Company's ability to meet future debt service, capital expenditures
and working capital requirements as it factors out non-cash
expenses such as depreciation, amortization, and impairment
charges.
Accordingly, Adjusted EBITDA should be used as a supplement to
the comparable GAAP measures and should not be construed as a
substitute for income from operations or net income, or a better
indicator of liquidity than cash flows from operating activities,
which are determined in accordance with GAAP.
Cautionary Notice Regarding Forward-Looking
Statements
This press release contains forward-looking statements which
represent the Company's present expectations or beliefs concerning
future events, including with respect to the tender offer and
related transactions. When used in this press release, the words
"can," "will," "intends," "expects," "is expected," similar
expressions and any other statements that are not historical facts
are intended to identify those assertions as forward-looking
statements. Such statements are based on a number of assumptions
that could ultimately prove inaccurate, and are subject to a number
of risk factors. The Company does not assume any obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise. Risk factors include the
following: uncertainties regarding the timing of the closing of the
transaction; uncertainties as to the number of stockholders of the
Company who may tender their stock in the tender offer; the risk of
failing to obtain any regulatory approvals or satisfy conditions to
the transaction; the risk that Kohlberg is unable to obtain
adequate financing; the risk that the transaction will not close or
that the closing will be delayed; the risk that the Company's
businesses will suffer due to uncertainty related to the
transaction; competitive responses to the transaction; changes in
general economic conditions; reductions in school budgets;
increased competition; exchange rate fluctuations; variations in
the mix of products sold; market acceptance of new products;
ability of suppliers to meet demand; concentration of credit risk;
ability to fulfill piano orders in a timely manner; and
fluctuations in effective tax rates resulting from shifts in
sources of income. Further information on factors that could affect
the Company's financial results is provided in documents filed by
the Company with the Securities and Exchange Commission (the
"SEC"), including the Company's recent filings on Form 10-Q
and Form 10-K.
Notice to Investors
This press release is neither an
offer to purchase nor a solicitation of an offer to sell any
securities. The solicitation and the offer to buy shares of the
Company common stock have been made pursuant to a tender offer
statement on Schedule TO, containing an offer to purchase and
related tender offer documents, filed by Kohlberg and certain of
its affiliates with the SEC on July 15,
2013. The Company filed a solicitation/recommendation
statement on Schedule 14D-9 with respect to the tender offer with
the SEC on July 15, 2013. The tender
offer statement (including an offer to purchase, a related letter
of transmittal and other tender offer documents) and the
solicitation/recommendation statement, and any amendments thereto,
contain important information that should be read carefully before
any decision is made with respect to the tender offer. These
materials are available to the Company's stockholders at no expense
to them and may also be obtained by contacting the Company's
Investor Relations Department at 800 South Street, Suite 305,
Waltham, Massachusetts 02453,
telephone number (781) 894-9770 or ir@steinwaymusical.com. All of
these materials (and all other tender offer documents filed with
the SEC) are available at no charge at the SEC's website
(www.sec.gov).
Company Contact:
Julie A.
Theriault
Steinway Musical Instruments, Inc.
(781) 894-9770
ir@steinwaymusical.com
Investor Relations Contact:
Harriet Fried / Jody
Burfening
LHA
(212) 838-3777
hfried@lhai.com
STEINWAY MUSICAL
INSTRUMENTS, INC.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(In Thousands, Except
Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
6/30/2013
|
|
6/30/2012
|
|
6/30/2013
|
|
6/30/2012
|
Net sales
|
$
92,353
|
|
$
85,704
|
|
$
169,156
|
|
$
163,657
|
Cost of
sales
|
61,063
|
|
58,339
|
|
112,516
|
|
113,145
|
Gross
profit
|
31,290
|
|
27,365
|
|
56,640
|
|
50,512
|
|
33.9%
|
|
31.9%
|
|
33.5%
|
|
30.9%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
10,969
|
|
11,072
|
|
22,249
|
|
23,057
|
General and
administrative
|
11,266
|
|
10,144
|
|
19,736
|
|
19,105
|
Other
|
454
|
|
178
|
|
473
|
|
216
|
Total operating
expenses
|
22,689
|
|
21,394
|
|
42,458
|
|
42,378
|
|
|
|
|
|
|
|
|
Income from
operations
|
8,601
|
|
5,971
|
|
14,182
|
|
8,134
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
(21,707)
|
|
1,277
|
|
(21,306)
|
|
1,631
|
Interest expense,
net
|
939
|
|
942
|
|
1,856
|
|
1,792
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
29,369
|
|
3,752
|
|
33,632
|
|
4,711
|
|
|
|
|
|
|
|
|
Income tax
provision
|
9,214
|
|
1,355
|
|
10,787
|
|
1,724
|
|
|
|
|
|
|
|
|
Net
income
|
$
20,155
|
|
$
2,397
|
|
$
22,845
|
|
$
2,987
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
1.62
|
|
$
0.19
|
|
$
1.83
|
|
$
0.24
|
Earnings per share -
diluted
|
$
1.60
|
|
$
0.19
|
|
$
1.82
|
|
$
0.24
|
Weighted average
common shares - basic
|
12,463
|
|
12,378
|
|
12,461
|
|
12,373
|
Weighted average
common shares - diluted
|
12,571
|
|
12,507
|
|
12,558
|
|
12,508
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2013
|
|
6/30/2012
|
|
12/31/2012
|
Cash
|
|
|
$
106,500
|
|
$
40,461
|
|
$
73,406
|
Receivables,
net
|
|
|
49,211
|
|
47,392
|
|
43,536
|
Inventories,
net
|
|
|
133,974
|
|
137,210
|
|
125,081
|
Other current
assets
|
|
|
15,820
|
|
24,900
|
|
14,309
|
Total current
assets
|
|
|
305,505
|
|
249,963
|
|
256,332
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
67,936
|
|
88,743
|
|
91,485
|
Other
assets
|
|
|
78,551
|
|
71,854
|
|
77,850
|
Total
assets
|
|
|
$
451,992
|
|
$
410,560
|
|
$
425,667
|
|
|
|
|
|
|
|
|
Debt
|
|
|
$
67,968
|
|
$
626
|
|
$
576
|
Other current
liabilities
|
|
|
61,976
|
|
47,159
|
|
53,042
|
Total current
liabilities
|
|
|
129,944
|
|
47,785
|
|
53,618
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
-
|
|
70,899
|
|
67,431
|
Other
liabilities
|
|
|
59,569
|
|
56,821
|
|
62,773
|
Stockholders'
equity
|
|
|
262,479
|
|
235,055
|
|
241,845
|
Total liabilities and
stockholders' equity
|
|
|
$
451,992
|
|
$
410,560
|
|
$
425,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEINWAY MUSICAL
INSTRUMENTS, INC.
|
Reconciliation of
GAAP Earnings to Adjusted Earnings
|
(In Thousands, Except
Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
6/30/13
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
Band sales
|
$
35,596
|
|
$
-
|
|
$
35,596
|
Piano
sales
|
56,757
|
|
-
|
|
56,757
|
Total
sales
|
92,353
|
|
-
|
|
92,353
|
|
|
|
|
|
|
Band gross
profit
|
10,284
|
|
-
|
|
10,284
|
Piano gross
profit
|
21,006
|
|
-
|
|
21,006
|
Total gross
profit
|
31,290
|
|
-
|
|
31,290
|
|
|
|
|
|
|
Band GM %
|
28.9%
|
|
|
|
28.9%
|
Piano GM %
|
37.0%
|
|
|
|
37.0%
|
Total GM
%
|
33.9%
|
|
|
|
33.9%
|
|
|
|
|
|
|
Operating
expenses
|
22,689
|
|
(500)
|
(1)
|
22,189
|
|
|
|
|
|
|
Income from operations
|
8,601
|
|
500
|
|
9,101
|
|
|
|
|
|
|
Other (income)
expense, net
|
(21,707)
|
|
22,725
|
(2)
|
1,018
|
Interest expense,
net
|
939
|
|
-
|
|
939
|
|
|
|
|
|
|
Income before income taxes
|
29,369
|
|
(22,225)
|
|
7,144
|
|
|
|
|
|
|
Income tax
provision
|
9,214
|
|
(6,521)
|
(3)
|
2,693
|
|
|
|
|
|
|
Net income
|
$
20,155
|
|
$
(15,704)
|
|
$
4,451
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
1.62
|
|
|
|
$
0.36
|
Earnings per share -
diluted
|
$
1.60
|
|
|
|
$
0.35
|
Weighted average
common shares - basic
|
12,463
|
|
|
|
12,463
|
Weighted average
common shares - diluted
|
12,571
|
|
|
|
12,571
|
|
|
|
|
|
|
|
Three Months Ended
6/30/12
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
Band sales
|
$
35,340
|
|
$
-
|
|
$
35,340
|
Piano
sales
|
50,364
|
|
-
|
|
50,364
|
Total
sales
|
85,704
|
|
-
|
|
85,704
|
|
|
|
|
|
|
Band gross
profit
|
9,130
|
|
-
|
|
9,130
|
Piano gross
profit
|
18,235
|
|
-
|
|
18,235
|
Total gross
profit
|
27,365
|
|
-
|
|
27,365
|
|
|
|
|
|
|
Band GM %
|
25.8%
|
|
|
|
25.8%
|
Piano GM %
|
36.2%
|
|
|
|
36.2%
|
Total GM
%
|
31.9%
|
|
|
|
31.9%
|
|
|
|
|
|
|
Operating
expenses
|
21,394
|
|
(166)
|
(4)
|
21,228
|
|
|
|
|
|
|
Income from operations
|
5,971
|
|
166
|
|
6,137
|
|
|
|
|
|
|
Other (income)
expense, net
|
1,277
|
|
-
|
|
1,277
|
Interest expense,
net
|
942
|
|
-
|
|
942
|
|
|
|
|
|
|
Income before income taxes
|
3,752
|
|
166
|
|
3,918
|
|
|
|
|
|
|
Income tax
provision
|
1,355
|
|
62
|
(3)
|
1,417
|
|
|
|
|
|
|
Net income
|
$
2,397
|
|
$
104
|
|
$
2,501
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
0.19
|
|
|
|
$
0.20
|
Earnings per share -
diluted
|
$
0.19
|
|
|
|
$
0.20
|
Weighted average
common shares - basic
|
12,378
|
|
|
|
12,378
|
Weighted average
common shares - diluted
|
12,507
|
|
|
|
12,507
|
|
|
|
|
|
|
Notes to
Reconciliation of GAAP Earnings to Adjusted Earnings
|
(1) Reflects
impairment charges for online music business intangible assets.
(2) Reflects net gain on sale of West 57th Street office
building.
(3) Reflects the tax effect of Adjustments.
(4) Reflects asset impairment charges related to a closed
plant.
|
|
|
|
|
|
|
|
|
|
|
|
|
STEINWAY MUSICAL
INSTRUMENTS, INC.
|
Reconciliation of
GAAP Earnings to Adjusted Earnings
|
(In Thousands, Except
Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
6/30/13
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
Band sales
|
$
66,985
|
|
$
-
|
|
$
66,985
|
Piano
sales
|
102,171
|
|
-
|
|
102,171
|
Total
sales
|
169,156
|
|
-
|
|
169,156
|
|
|
|
|
|
|
Band gross
profit
|
19,542
|
|
-
|
|
19,542
|
Piano gross
profit
|
37,098
|
|
-
|
|
37,098
|
Total gross
profit
|
56,640
|
|
-
|
|
56,640
|
|
|
|
|
|
|
Band GM %
|
29.2%
|
|
|
|
29.2%
|
Piano GM
%
|
36.3%
|
|
|
|
36.3%
|
Total GM
%
|
33.5%
|
|
|
|
33.5%
|
|
|
|
|
|
|
Operating
expenses
|
42,458
|
|
(500)
|
(1)
|
41,958
|
|
|
|
|
|
|
Income from operations
|
14,182
|
|
500
|
|
14,682
|
|
|
|
|
|
|
Other (income)
expense, net
|
(21,306)
|
|
22,725
|
(2)
|
1,419
|
Interest expense,
net
|
1,856
|
|
-
|
|
1,856
|
|
|
|
|
|
|
Income before income taxes
|
33,632
|
|
(22,225)
|
|
11,407
|
|
|
|
|
|
|
Income tax
provision
|
10,787
|
|
(6,521)
|
(3)
|
4,266
|
|
|
|
|
|
|
Net income
|
$
22,845
|
|
$
(15,704)
|
|
$
7,141
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
1.83
|
|
|
|
$
0.57
|
Earnings per share -
diluted
|
$
1.82
|
|
|
|
$
0.57
|
Weighted average
common shares - basic
|
12,461
|
|
|
|
12,461
|
Weighted average
common shares - diluted
|
12,558
|
|
|
|
12,558
|
|
|
|
|
|
|
|
Six Months Ended
6/30/12
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
Band sales
|
$
69,150
|
|
$
-
|
|
$
69,150
|
Piano
sales
|
94,507
|
|
-
|
|
94,507
|
Total
sales
|
163,657
|
|
-
|
|
163,657
|
|
|
|
|
|
|
Band gross
profit
|
17,086
|
|
-
|
|
17,086
|
Piano gross
profit
|
33,426
|
|
-
|
|
33,426
|
Total gross
profit
|
50,512
|
|
-
|
|
50,512
|
|
|
|
|
|
|
Band GM %
|
24.7%
|
|
|
|
24.7%
|
Piano GM %
|
35.4%
|
|
|
|
35.4%
|
Total GM
%
|
30.9%
|
|
|
|
30.9%
|
|
|
|
|
|
|
Operating
expenses
|
42,378
|
|
(166)
|
(4)
|
42,212
|
|
|
|
|
|
|
Income from operations
|
8,134
|
|
166
|
|
8,300
|
|
|
|
|
|
|
Other (income)
expense, net
|
1,631
|
|
-
|
|
1,631
|
Interest expense,
net
|
1,792
|
|
-
|
|
1,792
|
|
|
|
|
|
|
Income before income taxes
|
4,711
|
|
166
|
|
4,877
|
|
|
|
|
|
|
Income tax
provision
|
1,724
|
|
62
|
(3)
|
1,786
|
|
|
|
|
|
|
Net income
|
$
2,987
|
|
$
104
|
|
$
3,091
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
0.24
|
|
|
|
$
0.25
|
Earnings per share -
diluted
|
$
0.24
|
|
|
|
$
0.25
|
Weighted average
common shares - basic
|
12,373
|
|
|
|
12,373
|
Weighted average
common shares - diluted
|
12,508
|
|
|
|
12,508
|
|
|
|
|
|
|
Notes to
Reconciliation of GAAP Earnings to Adjusted Earnings
|
(1) Reflects
impairment charges for online music business intangible assets.
(2) Reflects net gain on sale of West 57th Street office
building.
(3) Reflects the tax effect of Adjustments.
(4) Reflects asset impairment charges related to a closed
plant.
|
|
|
|
|
|
|
|
|
|
|
|
STEINWAY MUSICAL
INSTRUMENTS, INC.
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Cash Flows from Operating Activities to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
6/30/2013
|
|
6/30/2012
|
|
6/30/2013
|
|
6/30/2012
|
Cash flows from
operating activities
|
|
|
|
$
4,784
|
|
$
(1,932)
|
|
$
(5,087)
|
|
$
(9,652)
|
Changes in operating
assets and liabilities
|
|
|
|
(6,598)
|
|
7,089
|
|
8,892
|
|
18,188
|
Stock-based
compensation expense
|
|
|
|
(92)
|
|
(100)
|
|
(188)
|
|
(211)
|
Income tax provision,
net of deferreds
|
|
|
|
11,375
|
|
1,390
|
|
12,851
|
|
1,835
|
Net interest
expense
|
|
|
|
939
|
|
942
|
|
1,856
|
|
1,792
|
Recovery of
(provision for) doubtful accounts
|
|
|
|
7
|
|
(227)
|
|
(239)
|
|
(915)
|
Other
|
|
|
|
22,356
|
|
(99)
|
|
22,204
|
|
98
|
Non-recurring,
infrequent or unusual cash charges
|
|
|
|
(22,725)
|
|
-
|
|
(22,725)
|
|
-
|
Adjusted
EBITDA
|
|
|
|
$
10,046
|
|
$
7,063
|
|
$
17,564
|
|
$
11,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
6/30/2013
|
|
6/30/2012
|
|
6/30/2013
|
|
6/30/2012
|
Net
income
|
|
|
|
$
20,155
|
|
$
2,397
|
|
$
22,845
|
|
$
2,987
|
Income tax
provision
|
|
|
|
9,214
|
|
1,355
|
|
10,787
|
|
1,724
|
Net interest
expense
|
|
|
|
939
|
|
942
|
|
1,856
|
|
1,792
|
Depreciation
|
|
|
|
1,763
|
|
1,942
|
|
3,838
|
|
3,943
|
Amortization
|
|
|
|
200
|
|
261
|
|
463
|
|
523
|
Non-recurring,
infrequent or unusual items
|
|
|
|
(22,225)
|
|
166
|
|
(22,225)
|
|
166
|
Adjusted
EBITDA
|
|
|
|
$
10,046
|
|
$
7,063
|
|
$
17,564
|
|
$
11,135
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Steinway Musical Instruments, Inc.