Hercules Incorporated Form 8-K for the Period September 30 2006
United
States
Securities
and Exchange Commission
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (Date of earliest event reported): October
23, 2006
Hercules
Incorporated
(Exact
name of registrant as specified in its charter)
Delaware
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001-00496
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51-0023450
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(State
or other jurisdiction of
incorporation)
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(Commission
File Number)
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(IRS
Employer Identification
Number)
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Hercules
Plaza
1313
North Market Street
Wilmington,
Delaware 19894-0001
(Address
of principal executive offices) (Zip Code)
(302)
594-5000
(Registrant’s
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following
provisions:
o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Item
2.02 Results
of Operations and Financial Condition.
On
October 23, 2006, Hercules Incorporated ("Hercules") reported its third quarter
2006 results. A news release detailing the third quarter financial performance,
dated October 23, 2006, was issued by Hercules and is furnished as an exhibit
hereto and incorporated by reference herein.
The
news release includes presentations of earnings before interest and taxes
("EBIT") and earnings before interest, taxes, depreciation and amortization
("EBITDA"), both of which are non-GAAP financial measures. EBIT and EBITDA
are
measures commonly used by the capital markets to value enterprises. Interest,
taxes, depreciation and amortization can vary significantly between companies
due in part to differences in accounting policies, tax strategies, levels of
indebtedness and interest rates. Excluding these items provides insight into
the
underlying results of operations and facilitates comparisons between Hercules
and other companies. In addition, EBITDA is considered a reasonable
approximation of gross cash flow and is one of the measures used for determining
debt covenant compliance. Management believes that EBIT and EBITDA information
is useful to investors for these reasons. These measurements are not recognized
in accordance with GAAP and should not be viewed as alternatives to GAAP
measures of performance.
The
table below provides a reconciliation of EBIT and EBITDA to net cash provided
by
operations for the nine months ended September 30, 2006 and 2005:
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Nine
Months Ended
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September
30
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2006
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2005
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(Loss)
income before income taxes and equity loss
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$
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(2.5
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)
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$
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39.2
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Interest
and debt expense
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54.1
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67.5
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EBIT
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$
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51.6
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$
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106.7
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Depreciation
and amortization, net of amortization of debt issuance
costs
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70.9
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77.1
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EBITDA
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$
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122.5
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$
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183.8
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Income
tax benefit
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2.7
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0.6
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Interest
and debt expense
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(54.1
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)
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(67.5
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)
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Other
operating cash flows, net
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35.9
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(41.1
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)
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Net
cash provided by operations
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$
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107.0
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$
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75.8
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The
news
release also includes presentations of earnings from ongoing operations, which
is a non-GAAP financial measure. Management believes that earnings from ongoing
operations is meaningful to investors and the credit markets because it provides
insight into the underlying operating results of the Company by excluding the
effects of recent divestitures, restructuring and severance charges, changes
in
accounting principles and other significant discrete items. This measurement
is
not recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance.
The
information in this Current Report on Form 8-K, including Exhibit 99.1, shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange
Act
of 1934 (the "Exchange Act") or otherwise subject to the liability of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933 or the Exchange Act, unless the registrant expressly
states otherwise.
Item
9.01
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Financial
Statements and Exhibits.
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(c) Exhibits
99.1 News
Release of Hercules Incorporated dated October 23, 2006
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
October
24,
2006
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By:
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HERCULES
INCORPORATED
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/s/
Allen A. Spizzo
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Allen
A. Spizzo
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Vice
President and Chief Financial
Officer
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EXHIBIT INDEX
Number
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Description
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99.1
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News
Release of Hercules Incorporated dated October 23,
2006
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