Bob-Cat Recalls Zero Turn Mowers Due to Crash Hazart

Washington, DC -- November 21, 2014.

Recall Summary

Name of product:  Bob-Cat Zero Turn Riding Mower

Hazard:  The steering control arm component can break under normal use, causing driver to lose control and crash.

Remedy:  View Details 

Consumer Contact:  Call Bob-Cat toll free at (866) 469-1242 between 8 a.m. and 5 p.m. CT Monday through Friday, go to www.bobcatturf.com and click on the Customer Service tab at the top of the page, then click on the Product Recall Information in the drop down menu or write to Schiller Grounds Care, Inc., One Bob-Cat Lane, Johnson Creek, Wis. 53038.

Recall Details

Units:  About 4,900

Description:  The CRZ and XRZ model riding mowers have a chassis with an adjustable10-gauge green steel mower deck. The frame, fuel tank, engine compartment and side discharge chute are made of black metal and plastic components. It has four black wheels, two user-operated lever-arm controls and a gray adjustable high-back seat. The mowers range in size from 76 inches to 79 inches long and 45 inches high. The words “Bob Cat” appear in red lettering on the front of the mower and on top of the mower deck, and in a red and white designed logo on the sides of the mower. The words “TufDeck” and “Professional Cut” appear in white lettering on the front face of the mower deck. The recall mowers are:

CRZ 48-inch	model number 942699	serial numbers 94260000070-94260001236
CZR 52-inch	model number 942601	serial numbers 94260100070-94260101722
CZR 61-inch	model number 942602	serial numbers 94260200070-94260200545
XRZ 48-inch	model number 942610	serial numbers 94261000070-94261000390
XRZ 52-inch	model number 942611	serial numbers 94261100070-94261100709
XRZ 61-inch	model number 942612	serial numbers 94261200070-94261200342

The plate containing the serial and model number is located under the seat on the frame cross-member.

Incidents/Injuries:  Twenty-two incidents reported control arm failure, including failure during use and initial set-up. There have been no reports of injuries.

Remedy:  Mower should be returned to the dealer where purchased for free repair with a newly designed control arm component. Consumers who completed the warranty registration card were contacted directly by Schiller Grounds Care, Inc, with instructions for obtaining the repair.

Sold at:  Bob-Cat dealerships nationwide from January 2013 to April 2014 for $4,500 to $5,200.

Manufacturer:  Schiller Grounds Care, Inc., of Johnson Creek, Wisc.

Manufactured in:  United States

Briggs and Stratton Corporation Selects ARI's PartStream®

MILWAUKEE -- Nov 18, 2014 -- ARI Network Services, Inc. announced today that Briggs and Stratton Corporation has launched ARI's PartStream® illustrated parts look-up on its consumer-facing website at BriggsandStratton.com.

"We strive to continue to improve the user experience on our website. We actively solicit and review user feedback and in doing so, uncovered that our parts lookup could use improvement," said Dave Cluka, Director of Customer Experience at Briggs and Stratton. "We believe that PartStream® can not only provide a better user experience, but also reduce the burden on our team to maintain the previous, custom-built parts lookup tool."

The launch of PartStream® builds upon a 15-year relationship with the manufacturer. Briggs and Stratton also uses ARI's B2B electronic parts lookup application, PartSmart Web®, as well as ARI's data publishing tool, PartSmart Data Manager®. In addition, ARI provides Briggs and Stratton's dealer network with access to parts catalogs for the manufacturer's complete brand portfolio through PartSmart®, ARI's award-winning electronic parts lookup tool.

"We welcome the opportunity to extend our relationship with Briggs and Stratton to provide consumers with a better online parts lookup experience," said Roy W. Olivier, President and CEO of ARI. "Identifying and ordering the right part online can be frustrating, even for the most technically-savvy consumer. We're confident that PartStream^® will reduce frustration, improve customer satisfaction and drive more online parts sales."

PartStream® ARI's illustrated parts lookup solution, can easily be added to any existing website to fuel eCommerce sales. Part numbers and descriptions are automatically indexed for search engine optimization, making it easy for buyers to find and purchase parts online.

Dixie Chopper Expanding Workforce

COATESVILLE, Ind. – November 17 -- Since its acquisition by Jacobsen earlier this year, Dixie Chopper has been making significant investments in its products and people. In addition to several new products being added to the company’s portfolio, Dixie Chopper is also hiring on all sides of the business.

Last month, Dixie Chopper launched its 2015 product line-up at the GIE+EXPO in Louisville, Ky.

Currently, Dixie Chopper offers eight different mowers with various residential, light commercial, commercial and industrial models serving over 300 dealers across the United States.

Dixie Chopper now has a full portfolio of mowing products to fulfill the needs of both residential consumers or commercial cutters,” said Wes Evans, director of customer care and son of Art Evans, who founded Dixie Chopper nearly 35 years ago. “These new products are allowing us to move into new markets and we expect the business to grow rapidly over the next several years. In the 25-plus years I’ve been with this business, I’ve never seen so much excitement from our employees, dealers or customers.”

To prepare for the rapid growth, Dixie Chopper is currently adding staff across the company’s departments, especially in the customer-facing areas of sales, marketing and customer care.

“We will continue to invest in our two most valuable assets: our products and our people,” said Chris Vernon, new vice president and general manager of Dixie Chopper. “This is a very exciting time at Dixie Chopper and with the full support of Jacobsen and Textron behind us, 2015 is shaping up to be an excellent year for Dixie Chopper.”

www.lawnandlandscape.com 

Briggs and Stratton Recognized for Innovation by North American Die Casting Association

MILWAUKEE, --  Nov. 10  -- Briggs and Stratton Corporation's commitment to innovation across all products and brands has continued to garnish recognition amongst industry leaders.  Recently, Briggs and Stratton was the proud recipient of a 2014 International Die Casting Design Award, presented by the North American Die Casting Association in the 1-5lb category. For the last 41 years, NADCA has sponsored this competition to showcase outstanding die cast designs while acknowledging the continuous contribution die casters provide to the manufacturing industry.  

"The winning castings are a snapshot of the advancements made in die casting capabilities," said NADCA President Daniel Twarog. "Every die caster has pushed the limits of the process and demonstrated that geometric complexity, quality and cost savings can be accomplished." For each entry category, there are four equally weighted criteria: ingenuity of casting and/or product design, overall quality, cost savings as compared to other manufacturing processes and the part's contribution to expanding the market for die castings.

The new engine base design is made from a modified 383 aluminum alloy and cast from a three cavity die design. The design reduces the weight of the engine base by nearly 40%. This innovation not only increases manufacturing productivity and efficiency, but also reduces the weight of the overall engine which ultimately enhances the consumer's mowing experience. "Our design engineers did extensive structural and solidification computer modeling on the part and die design that contributed to the overall success of this product. These die castings are proudly manufactured by our team in Poplar Bluff, Missouri in our small engine focus factory," emphasized Dave DeBaets, Vice President of North American Operations.

Briggs and Stratton was honored at The National American Die Casting Association Annual Luncheon in Milwaukee, WI in September. Every year the NADCA hosts a luncheon to recognize significant advancements and leading innovators in the die casting industry. Briggs and Stratton continues to be a leader in innovation; continuously evolving outdoor power equipment engine expertise in new ways and embracing technology to improve all products for all customers, suppliers, and communities.

Briggs and Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the world's largest producer of gasoline engines for outdoor power equipment. Its wholly owned subsidiaries include North America's number one marketer of portable generators and pressure washers, and it is a leading designer, manufacturer and marketer of lawn and garden, turf care and job site products through its Simplicity®, Snapper®, Ferris®, Murray®, Allmand, Branco® and Victa® brands. Briggs and Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents.

Hustler Turf Equipment Purchases UTV Product Line

HESSTON, KS -- November 6 – Hustler Turf Equipment is pleased to announce it has purchased a utility vehicle product line from a European construction equipment manufacturer. Hustler has acquired tooling and design for the utility vehicle, with plans to expand its line of products.

 “We have developed patented technology to set Hustler well apart from other vehicles in the market. We simply needed a well-built vehicle to incorporate the technology,” said Adam Mullet, vice president of sales and marketing. “One look at the design and build quality of these vehicles and we knew right away it was a perfect match. The suspension, drivability, speed and high quality will put this vehicle in its own category."

The vehicle will be manufactured at the facility in Hesston, Kan., with production slated to begin in the fall of 2015.

www.lawnandlandscape.com  

Generac Reports Third Quarter 2014 Results

WAUKESHA, Wis.-- Nov. 6, 2014-- Generac Holdings Inc., a leading designer and manufacturer of power generation equipment and other engine powered products, today reported financial results for its third quarter ended September 30, 2014.

Third quarter 2014 Highlights

• Net sales were $352.3 million during the third quarter of 2014 as compared to $363.3 million in the prior-year third quarter.
• Residential product sales were $183.7 million during the third quarter as compared to $192.7 million in the prior-year quarter, primarily due to a decline in portable generator sales and, to a lesser extent, shipments of home standby generators.
• Commercial and Industrial (CandI) product sales were $146.4 million during the third quarter as compared to $151.5 million in the prior-year quarter. Contributions from recent acquisitions and strength in oil and gas markets were more than offset by a decline in shipments to telecom national account customers.
• Net income during the third quarter of 2014 was $36.5 million, or $0.52 per share, as compared to $47.1 million, or $0.67 per share, for the same period of 2013. Adjusted net income, as defined in the accompanying reconciliation schedules, was $57.9 million, or $0.83 per share, as compared to $73.7 million, or $1.06 per share, in the third quarter of 2013.
• Adjusted EBITDA, as defined in the accompanying reconciliation schedules, was $83.1 million as compared to $100.1 million in the third quarter last year.
• Cash flow from operations in the third quarter of 2014 was $57.2 million as compared to $80.9 million in the prior year quarter. Free cash flow, as defined in the accompanying reconciliation schedules, was $47.8 million as compared to $76.7 million in the third quarter of 2013.
• For the trailing four quarters, including the third quarter of 2014, net sales were $1.433 billion; net income was $173.7 million; adjusted EBITDA was $348.7 million; cash flow from operations was $247.2 million; and free cash flow was $208.0 million.
• On September 1, 2014, the Company acquired Pramac America, LLC, resulting in the ownership of the Powermate trade name and the right to license the DeWalt brand name for certain residential engine powered tools. The transaction also included working capital associated with these products. This acquisition helps to expand the Generac brand portfolio across its residential product platform and increases its product offering in the portable generator category.
• As previously announced, on October 1, 2014, the Company acquired MAC, Inc. and its related entities (“MAC”), a leading manufacturer of premium-grade commercial and industrial mobile heaters within the U.S. and Canada. The acquisition expands the Company’s portfolio of mobile power products and provides increased access to the oil and gas market.

“Home standby generator sales improved at a solid rate as compared to the second quarter of 2014, as we continue to build awareness and expand our leadership position for this product category. Despite current market conditions where power outage severity has been well below normal, we believe the penetration opportunity that exists for home standby generators remains significant,” said Aaron Jagdfeld, President and Chief Executive Officer.

“Our CandI product sales continued to experience good momentum within the oil and gas market, while capital spending with certain telecom customers was lower in the quarter resulting in reduced shipments to this end market. On the acquisition front, we have been active in recent months by closing two transactions which broaden our residential engine powered tool product line and expand our CandI mobile products platform, while also increasing our exposure to the oil and gas market.

We remain focused on our “Powering Ahead” strategic plan by proactively executing on a number of growth initiatives to drive a new and higher baseline of demand for our products.”

Additional Third quarter 2014 Highlights

Residential product sales for the third quarter of 2014 improved on a sequential basis to $183.7 million from $179.6 million in the second quarter of 2014, driven by a solid increase in shipments of home standby generators partially offset by a normal seasonal decline in power washer sales.

Residential product sales declined on a year-over-year basis from $192.7 million for the third quarter of 2013 as the prior year was still benefiting from the afterglow period of demand from Superstorm Sandy. Also, the third quarter of 2014 continued to experience a power outage severity environment that remained below normalized levels. These factors resulted in a year-over-year decline in portable generator sales and, to a lesser extent, shipments of home standby generators.

CandI product sales for the third quarter of 2014 were $146.4 million as compared to $151.5 million for the comparable period in 2013. Shipments to telecom national account customers declined in the current year quarter as compared to the prior year primarily resulting from reduced capital spending by certain customers. This decline was partially offset by contributions from recent acquisitions and strength in oil and gas markets.

Gross profit margin for the third quarter of 2014 was 37.0% compared to 38.4% in the prior-year third quarter. The decline was primarily driven by an increase in promotional activities during the current year quarter along with the mix impact from recent acquisitions. These declines were partially offset by a higher mix of home standby generators and lower mix of organic CandI product shipments.

Operating expenses for the third quarter of 2014 increased $7.3 million, or 14.0%, as compared to the third quarter of 2013. The increase was driven by a $5.6 million favorable adjustment to warranty reserves in the third quarter of 2013 that did not repeat in the current year, along with increased marketing and advertising expenses and the addition of operating expenses associated with recent acquisitions.

Interest expense in the third quarter of 2014 was $12.3 million, which was largely flat as compared to $12.5 million in the prior year. During the third quarter of 2014, a voluntary $50 million pre-payment of term loan debt was made which resulted in the recording of a $1.8 million loss on extinguishment of debt.

2014 Outlook

The Company is revising its prior guidance for revenue growth and adjusted EBITDA margins for full year 2014 resulting from a power outage environment that remains well below normalized levels, a reduced level of capital spending with certain telecom customers and the continued overall economic softness in Latin America.

For the full-year 2014, the Company now expects net sales to decline in the mid-single digit range over the prior year, and adjusted EBITDA margins are now expected to be in the low-to-mid 20% range. Free cash flow is expected to remain strong for the full year 2014 as a result of this strong margin profile, together with a low cost of debt, favorable tax attributes and capital-efficient operating model.

“Although current market conditions were below our expectations in the third quarter of 2014, we believe the numerous long-term growth opportunities that impact our business remain in place,” continued Mr. Jagdfeld. “With our strong balance sheet and free cash flow generation profile, we are confident in our ability to continue to invest in the future growth of the business, both organically and through acquisitions. In doing this, we expect to drive further penetration of standby generators as well as benefit from being a more balanced and globally-focused company, as we further implement our diversification and international expansion strategies.”

About Generac

Since 1959, Generac has been a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products. As a leader in power equipment serving residential, light commercial, industrial, oil and gas, and construction markets, Generac's power products are available globally through a broad network of independent dealers, retailers, wholesalers and equipment rental companies, as well as sold direct to certain end user customers.

Blount Announces Third Quarter 2014 Results

PORTLAND, Ore., Nov. 5, 2014 -- Blount International, Inc. today announced results for the third quarter ended September 30, 2014.

Results for the Quarter Ended September 30, 2014

Sales in the third quarter were $245.2 million, an increase of $14.6 million or 6.3 percent compared to the third quarter of 2013. Operating income for the third quarter of 2014 was $23.5 million compared to $15.6 million in the same quarter last year. Third quarter net income was $16.1 million, or$0.32 per diluted share, compared to $7.7 million, or $0.15 per diluted share, in the third quarter of 2013.

"We performed well in the third quarter and demand continued to be strong across most geographic regions," stated Josh Collins, Blount's Chairman and CEO. "With the improved demand, our strong focus on Operational Excellence, and our other targeted cost-reduction initiatives, we expect to be toward the high end of the 2014 targets we outlined last quarter."

Blount operates primarily in two business segments - the Forestry, Lawn, and Garden ("FLAG") segment and the Farm, Ranch, and Agriculture ("FRAG") segment. The Company reports separate results for the FLAG and FRAG segments. Blount's Concrete Cutting and Finishing ("CCF") business is included in "Corporate and Other."

Forestry, Lawn, and Garden

The FLAG segment had third quarter 2014 sales of $159.1 million, which was $9.6 million higher than the third quarter of 2013. Sales volume increases were partially offset by a reduction in average prices. Third quarter 2014 sales increased in all geographic regions except Asia, with North America generating approximately seven percent growth and Europe and Russia achieving approximately 10 percent growth. Asia sales were down one percent compared to the third quarter of 2013. Lower average prices partially offset the effect of increased volumes as a result of a higher mix of sales to original equipment manufacturers and targeted price reductions in certain geographic markets. The change in segment sales for the comparable third quarter periods is illustrated below.

Change in FLAG Segment Sales
(In millions; amounts may not sum due to rounding)	Sales	Change
Third quarter 2013	$ 149.5
Increase / (Decrease)
Foreign Exchange	0.1	0.1%
	149.6	0.1%
Unit Volume	11.5	7.7%
Selling Price / Mix	(2.0)	(1.3)%
Third quarter 2014	$ 159.1	6.4%

Segment backlog was $135.7 million at September 30, 2014, an increase of 17% from $115.9 million on September 30, 2013. The increase in backlog was driven mostly by increased saw chain demand compared to the prior year.

Segment contribution to operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and certain charges ("Adjusted EBITDA") was $26.5 million and $33.8 million, respectively, for the third quarter of 2014, and includes $7.5 million of allocated shared services expenses. Contribution to operating income improved 22.7 percent and Adjusted EBITDA improved 18.5 percent for the third quarter of 2014 versus the third quarter of 2013. The change in FLAG contribution to operating income for the comparable third quarter periods is presented below. 

Change in FLAG Segment Contribution to Operating Income and Adjusted EBITDA
(In millions; amounts may not sum due to rounding)
	Contribution to Operating Income	As a Percent of Segment Sales	Depreciation, Amortization, and Other	Adjusted EBITDA	As a Percent of Segment Sales
Third quarter 2013	$ 21.6	14.5%	$ 6.9	$ 28.5	19.1%
Increase / (Decrease)
Steel Costs	(1.4)
Foreign Exchange	0.4
	20.6	13.8%
Unit Volume	4.8
Selling Price / Mix	(2.0)
Costs / Mix	3.0
	26.4	16.6%
Acquisition accounting(1)	0.1
Third quarter 2014	$ 26.5	16.7%	$ 7.2	$ 33.8	21.2%
(1) Represents change in non-cash acquisition accounting impact for all FLAG business units

Segment contribution to operating income and Adjusted EBITDA improved primarily due to higher sales volumes, a more efficient cost profile, and favorable foreign exchange rates. Increased steel costs and the impact of lower average prices and mix slightly offset the improvements in those areas.

The closure of a higher cost FLAG manufacturing plant announced in mid-2013 and higher plant utilization rates (88 percent in the third quarter of 2014 compared to 71 percent in the third quarter of 2013) contributed to improved overall operating efficiency.

The manufacturing cost improvement was partially offset by an increase in SG&A spending, driven by incentive compensation expense as 2014 results compare more favorably to target than in 2013, increased advertising costs, and additional training, travel, and relocation expenses. 

Farm, Ranch, and Agriculture

The FRAG segment reported third quarter 2014 sales of $78.6 million, an increase of $4.3 million from the third quarter of 2013, mainly due to improved sales volumes and stronger average pricing. Sales volumes increased primarily as a result of continued strong sales of log splitters compared to the prior year. The change in segment sales for the comparable third quarter periods is illustrated below.

Change in FRAG Segment Sales
(In millions; amounts may not sum due to rounding)	Sales	Change
Third quarter 2013	$ 74.3
Increase / (Decrease)
Foreign Exchange	0.1	0.1%
	74.4	0.1%
Unit Volume	3.7	5.0%
Selling Price / Mix	0.5	0.7%
Third quarter 2014	$ 78.6	5.8%

Segment backlog was $32.0 million at September 30, 2014 compared to $31.0 million at September 30, 2013. The FRAG segment had $7.8 million of Adjusted EBITDA in the third quarter of 2014. FRAG segment contribution to operating income was $2.2 million after $4.0 million of depreciation and amortization expense, $2.3 million of allocated shared services expenses, and a $1.4 million non-cash charge related to impairment of an acquired trade name. The change in the third quarter 2014 contribution to operating income compared to the third quarter of 2013 is presented below.

Change in FRAG Segment Contribution to Operating Income and Adjusted EBITDA
(In millions; amounts may not sum due to rounding)
	Contribution to Operating Income	As a Percent of Segment Sales	Depreciation, Amortization, and Other	Adjusted EBITDA	As a Percent of Segment Sales
Third quarter 2013	$ 4.4	5.9%	$ 4.5	$ 8.9	12.0%
Increase / (Decrease)
Steel Costs	—
Foreign Exchange	—
	4.4	5.9%
Unit Volume	1.1
Selling Price / Mix	0.5
Costs / Mix	(2.8)
	3.3	4.3%
Acquisition accounting(1)	0.3
Impairment of Acq. Intangibles	(1.4)
Third quarter 2014	$ 2.2	2.8%	$ 5.5	$ 7.8	9.9%
(1) Represents change in acquisition accounting impact for all FRAG business units

The benefit of improved sales volumes and average pricing were more than offset by higher costs in the FRAG segment, mainly in the areas of manufacturing, distribution, and supplier purchased components. Product costs were unfavorable compared to the third quarter of 2013 as a result of higher procurement costs on certain parts, higher labor costs driven by overtime, and additional spending in SG&A. Also, product sales mix in the third quarter of 2014 included relatively lower margin products compared to 2013.

Corporate and Other

Corporate and Other generated net expense of $5.2 million in the third quarter of 2014 compared to net expense of $10.4 million in the third quarter of 2013. Third quarter 2014 net expense was smaller due to the absence of $4.6 million in restructuring charges experienced in the third quarter of 2013 related to the closure of a saw chain manufacturing facility in Portland, Oregon and the related consolidation of production into other FLAG forestry facilities. 

Net Income

Third quarter 2014 net income increased primarily due to higher overall operating income in the third quarter of 2014 compared to 2013. Net interest expense decreased $0.8 million to $4.1 million in the third quarter of 2014 as a result of lower average borrowing levels. Other income improved$4.2 million primarily as a result of foreign exchange impacts on non-operating assets. Additionally, the effective income tax rate increased as the prior year benefited from the expiration of the statute of limitations in certain tax jurisdictions and release of the related income tax on uncertain tax positions. The change in net income for the third quarter of 2014 compared to the third quarter of 2013 is summarized in the table below.

Change in Consolidated Net Income
				Diluted
(In millions, except per share data;		Income Tax	Net	Earnings per
amounts may not sum due to rounding)	Pre-tax Income	Effect	Income	Share
Third quarter 2013 Results	$ 9.5	$ 1.8	$ 7.7	$ 0.15
Change due to:
Increased operating income excluding acquisition accounting	9.1	1.7	7.4	0.15
Acquisition accounting	(1.2)	(0.2)	(1.0)	(0.02)
Decreased net interest expense	0.8	0.1	0.6	0.01
Change in other expense	4.2	0.8	3.4	0.07
Change in income tax rate	—	2.0	(2.0)	(0.04)
Third quarter 2014 Results	$ 22.4	$ 6.3	$ 16.1	$ 0.32

Cash Flow and Debt

As of September 30, 2014, the Company had net debt of $351.1 million, a decrease of $44.1 million from December 31, 2013 and a decrease of $53.8 million compared to September 30, 2013. The decrease in net debt since December 31, 2013 was primarily the result of generating free cash flow of$51.9 million during the first nine months of 2014. Third quarter 2014 free cash flow generation was $37.9 million compared to $56.1 million in the third quarter of 2013. The decrease in free cash flow in the third quarter of 2014 as compared to 2013 was the result of a large conversion of working capital to cash in 2013 and an increase of $5.2 million in capital spending in 2014, mostly on capacity improvements in China and Canada. The Company defines free cash flow as cash flows from operating activities less net capital spending. The ratio of net debt to last-twelve-months ("LTM") Adjusted EBITDA was 2.7x as of September 30, 2014, which is an improvement compared to December 31, 2013 and reflects lower net debt and increased Adjusted EBITDA.

2014 Financial Outlook

The Company has updated its outlook for sales and free cash flow while maintaining its outlook for Adjusted EBITDA. Sales are expected to range between $940 million and $950 million, Adjusted EBITDA between $135 million and $140 million, and operating income between $81 million and $86 million. Our expectation for sales assumes growth in FLAG segment sales of between four and five percent and growth in FRAG segment sales of between five and six percent, both compared to full year 2013 levels. In 2014, operating income is expected to experience benefit from foreign currency exchange rates of between $2 million and $3 million, and steel costs are expected to have a $3 million to $4 million unfavorable impact for the year compared to 2013. The 2014 operating income outlook includes non-cash charges of approximately $13 million related to acquisition accounting. Free cash flow in 2014 is expected to range between $42 million and $48 million, after approximately $40 million to $42 million of capital expenditures. Net interest expense is expected to be between $17 million and $18 million in 2014, and the effective income tax rate is expected to be between 31 percent and 34 percent in 2014.

A comparison of key operating indicators for 2013 actual results and the 2014 outlook mid-point is provided in the table below.  

(In millions)	2013 Actual	2014 Outlook Mid-Point
Sales	$ 900.6	$ 945.0
Operating Income(1)	37.5	83.5
Adjusted EBITDA	123.5	137.5
Free Cash Flow	67.6	45.0
Net Capital Expenditures	29.4	41.0
Net Debt at Period End	395.2	357.5
Net Debt/Adjusted EBITDA	3.2x	2.6x
(1) 2013 Actual Operating Income includes a $24.9 million non-cash charge related to impairment of certain acquired intangible assets

Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for consumers and professionals operating primarily in two market segments: Forestry, Lawn, and Garden ("FLAG"); and Farm, Ranch, and Agriculture ("FRAG"). Blount also sells products in the construction markets and is the market leader in manufacturing saw chain and guide bars for chain saws. Blount has a global manufacturing and distribution footprint and sells its products in more than 115 countries around the world. Blount markets its products primarily under the OREGON^®, Carlton^®, Woods^®, TISCO, SpeeCo^®, ICS^® and Pentruder^® brands. For more information about Blount, please visit our website at http://www.blount.com.