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): May 1, 2003
Hercules Incorporated
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(Exact name of registrant as specified in its charter)
Delaware 001-00496 51-0023450
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(State or other jurisdiction of (Commission File Number) (IRS Employer Identification Number)
incorporation)
Hercules Plaza
1313 North Market Street
Wilmington, Delaware 19894-0001
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(Address of principal executive offices) (Zip Code)
(302) 594-5000
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(Registrant's telephone number, including area code)
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Item 12. Disclosure of Results of Operations and Financial Condition.
On May 1, 2003, Hercules Incorporated ("Hercules") reported its first quarter
2003 results. A press release detailing the first quarter 2003 financial
performance, dated May 1, 2003, was issued by Hercules and is furnished as an
exhibit hereto and incorporated by reference herein.
The press 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.
The table below provides a reconciliation of EBITDA to net cash provided by
(used in) operations for the three months ended March 31, 2003 and 2002:
THREE MONTHS
ENDED MARCH 31
2003 2002
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EBITDA (See Table 1 of press release): $ 78 $ 72
Provision for income taxes (8) (2)
Interest, debt expense and preferred security
distributions (34) (51)
Operating cash flows, net (24) (34)
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Net cash provided by (used in) operations $ 12 $(15)
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(c) Exhibits.
99.1 Press Release of Hercules Incorporated dated May 1, 2003.
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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.
HERCULES INCORPORATED
May 1, 2003 By: /s/ Israel J. Floyd
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Israel J. Floyd
Corporate Secretary and General Counsel
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EXHIBIT INDEX
Number Exhibit
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99.1 Press Release of Hercules Incorporated dated May 1, 2003.
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