Adjusted EBITDA — Consumer Products
The table below shows the adjustments made to the reported net income of the Consumer Products segment to calculate its Adjusted EBITDA (in millions):
|
| | | | | | | | | | | | |
| | Fiscal Quarter |
Reconciliation to reported net income: | | 2016 | | 2015 | | Increase / (Decrease) |
Reported net income - Consumer Products segment | | $ | 73.7 |
| | $ | 50.0 |
| | $ | 23.7 |
|
Add back: | | | | | |
|
Interest expense | | 58.4 |
| | 44.4 |
| | 14.0 |
|
Income tax expense | | 6.9 |
| | 20.5 |
| | (13.6 | ) |
Depreciation and amortization, net of accelerated depreciation | | | | | | |
Depreciation of properties | | 23.0 |
| | 18.6 |
| | 4.4 |
|
Amortization of intangibles | | 23.6 |
| | 20.5 |
| | 3.1 |
|
EBITDA - Consumer Products segment | | 185.6 |
| | 154.0 |
| | 31.6 |
|
Stock-based compensation | | 10.1 |
| | 5.4 |
| | 4.7 |
|
Restructuring and related charges | | 1.2 |
| | 7.4 |
| | (6.2 | ) |
Acquisition and integration related charges | | 9.9 |
| | 8.1 |
| | 1.8 |
|
Other | | 0.3 |
| | 0.9 |
| | (0.6 | ) |
Adjusted EBITDA - Consumer Products segment | | $ | 207.1 |
| | $ | 175.8 |
| | $ | 31.3 |
|
Our Consumer Products segment’s Adjusted EBITDA increased $31.3 million to $207.1 million as compared to $175.8 million in the Fiscal 2015 Quarter driven by $19.2 million attributable to AAG’s operations coupled with increased profitability in the global pet supplies line as a result of the acquisitions of European IAMS and Eukanuba and Salix that accounted for $5.7 million and $4.6 million, respectively of the increase in Adjusted EBITDA. Adjusted EBITDA margin represented 17.0% of sales as compared to 16.5% in the Fiscal 2015 Quarter.
Adjusted EBITDA — Energy
The table below shows the adjustments made to the reported net income (loss) of the Energy segment to calculate its Adjusted EBITDA - Energy (in millions):
|
| | | | | | | | | | | | |
| | Fiscal Quarter |
Reconciliation to reported net income (loss): | | 2016 | | 2015 | | Increase / (Decrease) |
Reported net income (loss) - Energy segment | | $ | 38.3 |
| | $ | (39.5 | ) | | $ | 77.8 |
|
Interest expense | | 4.6 |
| | 4.5 |
| | 0.1 |
|
Depreciation, amortization and depletion | | 6.5 |
| | 13.5 |
| | (7.0 | ) |
EBITDA - Energy segment | | 49.4 |
| | (21.5 | ) | | 70.9 |
|
Accretion of discount on asset retirement obligations | | 0.6 |
| | 0.6 |
| | — |
|
Impairments and bad debt expense | | 54.4 |
| | 190.0 |
| | (135.6 | ) |
Gain on sale of oil and gas properties | | (105.6 | ) | | — |
| | (105.6 | ) |
Gain on remeasurement of investment to fair value | | — |
| | (141.2 | ) | | 141.2 |
|
Non-recurring other operating items | | 1.0 |
| | 1.0 |
| | — |
|
Gain on derivative financial instruments | | (1.8 | ) | | (18.7 | ) | | 16.9 |
|
Cash settlements on derivative financial instruments | | 8.3 |
| | 2.4 |
| | 5.9 |
|
Stock based compensation expense | | — |
| | 0.3 |
| | (0.3 | ) |
Adjusted EBITDA - Energy segment | | $ | 6.3 |
| | $ | 12.9 |
| | $ | (6.6 | ) |
The Adjusted EBITDA-Energy for the Fiscal 2016 Quarter was $6.3 million, a decrease of $6.6 million from the Fiscal 2015 Quarter. The decrease was primarily attributable to the decline in average sales price for oil and natural gas during the Fiscal 2016 Quarter coupled with natural production declines.