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): July 21, 2008
Hercules
Incorporated
(Exact
name of registrant as specified in its charter)
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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:
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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 July
21, 2008 Hercules Incorporated ("Hercules") reported its second quarter 2008
results. A news release detailing the second quarter financial
performance, dated July 21, 2008, was issued by Hercules and is furnished as
Exhibit 99.1 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 six months ended June 30, 2008 and 2007:
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Six
Months Ended
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June
30
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2008
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2007
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Income
before income taxes, minority interests and equity loss
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$ | 91.8 | $ | 82.1 | ||||
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Interest
and debt expense
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35.0 | 35.0 | ||||||
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EBIT
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$ | 126.8 | $ | 117.1 | ||||
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Depreciation
and amortization, net of amortization of debt issuance
costs
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52.8 | 53.1 | ||||||
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EBITDA
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$ | 179.6 | $ | 170.2 | ||||
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Cash
paid for income taxes, net at refunds received
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(13.7 | ) | 171.6 | |||||
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Cash
paid for interest
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(36.4 | ) | (32.6 | ) | ||||
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Other
operating cash flows, net
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(61.6 | ) | (168.7 | ) | ||||
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Net
cash provided by operations
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$ | 67.9 | $ | 140.5 | ||||
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.
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Item
9.01
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Financial Statements
and Exhibits.
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(c) Exhibits
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99.1
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News
Release of Hercules Incorporated dated July 21,
2008
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- 2
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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.
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July
21, 2008
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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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- 3
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EXHIBIT INDEX
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Number
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Description
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99.1
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News
Release of Hercules Incorporated dated July 21,
2008
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