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 Nordson Corporation Reports Fiscal Year 2017 Fourth Quarter and Full Year Results
   Wednesday, December 13, 2017 4:30:00 PM ET

--Fourth quarter sales increased 13 percent over prior year’s fourth quarter to $574 million

--Fourth quarter operating profit increased 13 percent over prior year’s fourth quarter to $125 million and is inclusive of $6 million of intangible asset amortization expense for fiscal 2017 acquisitions

--Fourth quarter GAAP diluted EPS increased 5 percent over prior year’s fourth quarter to $1.37, inclusive of $0.07 per diluted share of intangible asset amortization expense for fiscal 2017 acquisitions

--Fourth quarter EBITDA increased 17 percent over prior year’s fourth quarter to $150 million

--Full Year:

--Full year sales, operating profit, diluted EPS, and EBITDA are company records

--Full year sales of $2.1 billion included 8 percent organic growth, with operating profit and EBITDA growth over the prior year of 18 percent and 19 percent, respectively

--GAAP diluted EPS increased 7 percent to $5.08, and adjusted diluted EPS increased 15 percent to $5.37, all compared to the prior year. Full year GAAP diluted EPS and adjusted diluted EPS includes a charge of $0.18 per diluted share related to intangible asset amortization expense for fiscal 2017 acquisitions.

--First quarter 2018 guidance: sales expected to increase 30 to 34 percent over prior year; GAAP diluted EPS in the range of $1.29 to $1.39; EBITDA in the range of $141 to $150 million

Nordson Corporation (NDSN ) today reported results for the fourth quarter of fiscal year 2017. For the quarter ending October 31, 2017, sales were $574 million, a 13 percent increase over the prior year’s fourth quarter. This change in sales included a 2 percent increase in organic volume, a 10 percent increase related to the first year effect of acquisitions, and a 1 percent increase related to the favorable effects of currency translation as compared to the prior year’s fourth quarter. Reported operating profit was $125 million, net income was $80 million, and GAAP diluted earnings per share were $1.37, inclusive of a $0.01 per share charge related to one-time items. Prior year fourth quarter sales, operating profit, net income and GAAP diluted earnings per share were $509 million, $111 million, $76 million and $1.31, respectively. A reconciliation of GAAP diluted EPS to adjusted diluted EPS is included in the attached financial exhibits.

Fourth quarter EBITDA increased 17 percent over the prior year fourth quarter to $150 million, or 26 percent of sales as compared to 25 percent in the prior year fourth quarter. Free cash flow before dividends was $111 million in the quarter, or 139 percent of net income. Calculations for EBITDA, adjusted EBITDA, free cash flow before dividends, and adjusted free cash flow before dividends are included in the attached exhibits.

"Nordson delivered strong results in the quarter against very challenging prior year comparisons where total company organic sales growth was 13 percent," said Michael F. Hilton, Nordson President and Chief Executive Officer. "Driven largely by robust demand in electronics end markets within the Advanced Technology segment, results for the quarter exceeded our guidance."

"This increase in volume, coupled with our continuous improvement initiatives, contributed to EBITDA margin improvement of 1 percentage point as compared to the prior year’s fourth quarter to 26 percent of sales," Hilton added. "The current quarter’s reported diluted earnings per share and adjusted diluted earnings per share include intangible asset amortization expense of $6 million, or $0.07 per diluted share, related to fiscal 2017 acquisitions. These acquisitions continue to perform as expected and strengthen our position in various profitable growth sectors."

Fourth Quarter Segment Results

Adhesive Dispensing Systems sales increased 6 percent compared to the prior year’s fourth quarter, inclusive of 4 percent organic growth and 2 percent related to the favorable effects of currency translation. "This marks the tenth consecutive quarter of organic growth in this segment. This is excellent performance, particularly against strong performance a year ago," said Hilton. "All product lines and nearly every region contributed to the current quarter’s growth." Reported operating margin in the segment improved 4 percentage points from the prior year to 28 percent in the quarter. The current quarter’s results for the segment include non-recurring restructuring charges of approximately $1 million related to a previously announced facility consolidation.

Advanced Technology Systems sales volume increased 29 percent compared to the prior year’s fourth quarter, including a 4 percent increase in organic volume and a 25 percent increase related to the first year effect of acquisitions. The effects of currency translation were immaterial. "Organic growth for this segment exceeded expectations in the current quarter and compares to an exceptional quarter a year ago where organic growth was 30 percent," said Hilton. The quarter’s acquisitive growth includes one month of the fiscal 2016 LinkTech acquisition and the fiscal 2017 acquisitions of ACE, InterSelect, Plas-Pak and Vention Medical. Reported operating margin in the segment was 24 percent in the quarter, or 26 percent on an adjusted basis to exclude $6 million of intangible asset amortization expense related to current year acquisitions.

Industrial Coating Systems sales volume decreased 8 percent compared to the prior year’s fourth quarter, where organic growth was 12 percent. The effects of currency translation were immaterial. "Growth in most product lines was offset by strong prior year performance in our cold material product lines," said Hilton. Reported operating margin in the segment was 18 percent.

Detailed results by operating segment and geography are included in the attached financial exhibits.

Fiscal 2017 Full Year Results

Sales for the fiscal year ended October 31, 2017 were $2.1 billion, an increase of 14 percent compared to the same period a year ago. This change in sales included organic volume growth of 8 percent and a 7 percent increase related to the first year effect of acquisitions, offset by a 1 percent impact due to the unfavorable effects of currency translation. Full year operating profit increased 18 percent to $458 million, net income was $296 million, and GAAP diluted earnings per share were $5.08, or $5.37 on a normalized basis to exclude one-time items. Prior year sales, operating profit, net income, and GAAP diluted earnings per share were $1.8 billion, $388 million, $272 million, and $4.73, respectively.

"Full year organic growth of 8 percent against a very challenging prior year where we generated organic growth of 7 percent is outstanding performance and reflective of both the value we bring to our customers and the quality of the global Nordson team," said Hilton. "In addition to executing on driving growth initiatives we also delivered on increasing performance where, excluding one-time charges highlighted in the EPS reconciliation financial exhibit and approximately $15 million of intangible asset amortization expense for fiscal 2017 acquisitions, operating margin improved from 22 percent to 24 percent."

Full year EBITDA increased 19 percent to $547 million and adjusted EBITDA increased 22 percent to $565 million, both compared to the prior year. EBITDA margin and adjusted EBITDA margin were 26 percent and 27 percent, respectively, both up over 100 basis points as compared to the prior year. Free cash flow before dividends of $282 million is 95 percent of net income, or 100 percent on an adjusted free cash flow basis. In addition to funding organic and acquisitive growth initiatives, Nordson paid $64 million in dividends for a full year payout ratio of 22 percent and reduced leverage on the balance sheet to just under 2.5 times trailing-twelve-months EBITDA.

Backlog

Backlog for the quarter ended October 31, 2017 was approximately $402 million, an increase of 45 percent compared to the same period a year ago, inclusive of 28 percent organic growth and 17 percent growth due to acquisitions. Backlog amounts are calculated at October 31, 2017 exchange rates.

Outlook

For the first quarter of fiscal 2018, sales are expected to increase 30 percent to 34 percent compared to the first quarter a year ago. This growth includes organic volume up 15 percent to 19 percent, 11 percent growth from the first year effect of acquisitions, and a positive currency effect of 4 percent based on the current exchange rate environment. At the midpoint of this outlook, operating margin is expected to be approximately 22 percent and GAAP diluted earnings per share are expected to be in the range of $1.29 to $1.39, inclusive of $6 million or $0.07 per diluted share of intangible asset amortization expense related to fiscal 2017 acquisitions. EBITDA and EBITDA margin are expected to be $146 million and 27 percent at the midpoint of the guidance, respectively.

"Our first quarter guidance is very strong, reflective of our current backlog, and is largely driven by the Advanced Technology segment, where strong demand in electronics and medical end markets is driving performance," said Hilton. "This exceptional growth against very challenging comparisons to the same period a year ago where we generated 10 percent total company organic growth is a result of our technology leadership and diversification efforts. The short cycle nature of our end markets does not provide much visibility beyond a fiscal quarter, however, we do expect growth rates to moderate beyond our first quarter, particularly when you consider our challenging comparisons to prior year."

Nordson management will provide additional commentary on these results and outlook during a conference call Thursday, December 14, 2017 at 8:30 a.m. eastern time which can be accessed at www.nordson.com/investors. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from Gregory A. Thaxton, Senior Vice President and Chief Financial Officer at (440) 414-5388 or greg.thaxton@nordson.com.

Except for historical information and comparisons contained herein, statements included in this release may constitute "forward-looking statements," as defined by the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors, as discussed in the company’s filing with the Securities and Exchange Commission that could cause actual results to differ.

Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the company has operations and support offices in more than 35 countries. Visit Nordson on the web at http://www.nordson.com, @Nordson_Corp, or www.facebook.com/nordson.

 
                                                                                                                                                                    NORDSON CORPORATION
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                                                                                                                                                                   FINANCIAL HIGHLIGHTS
                                                                                                                                                    (Dollars in thousands except for per-share amounts)
                                                                                                                
FOURTH QUARTER PERIOD
Period Ending October 31, 2017
(Unaudited)
                                                                                                                                                                                                                                                                
CONSOLIDATED STATEMENT OF INCOME
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Fourth Quarter                                                                                                                                   Year-to-Date
                                                                                                       2017                                                                   2016                                                                    2017                                                                     2016
                                                                                --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
                                                                                                                                                                                                                                                                                                        
Net sales                                                                                          $ 573,938                                                              $ 509,283                                                              $ 2,066,982                                                              $ 1,808,994
Cost of sales                                                                                        261,850                                                                234,316                                                                  927,981                                                                  815,495
Selling & administrative expenses                                                 187,300                          164,104                            681,299                            605,068  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
Operating profit                                                                                     124,788                                                                110,863                                                                  457,702                                                                  388,431
                                                                                                                                                                                                                                                                                                        
Interest expense - net                                                                               (11,436 )                                                               (5,606 )                                                                (35,477 )                                                                (20,594 )
Other income (expense) - net                                                         (482 )                                               106                             (1,934 )                                                 657  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
Income before income taxes                                                                           112,870                                                                105,363                                                                  420,291                                                                  368,494
Income taxes                                                                       33,035                           29,496                            124,489                             96,651  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
Net Income                                                                                         $  79,835                                           $  75,867                                           $   295,802                                           $   271,843  
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                        
Return on sales                                                                                           14 %                                                                   15 %                                                                     14 %                                                                     15 %
Return on average shareholders’ equity                                                                    29 %                                                                   36 %                                                                     30 %                                                                     37 %
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                   
----------------------------------------------------------                      ---------------------------------------------------------------------- ---------------------------------------------------------------------- ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                        
Average common shares outstanding (000’s)                                                             57,643                                                                 57,206                                                                   57,533                                                                   57,060
Average common shares and common share equivalents (000’s)                                            58,301                                                                 57,864                                                                   58,204                                                                   57,530
                                                                                                                                                                                                                                                                                                        
Per share:
                                                                                                                                                                                                                                                                                                        
Basic earnings                                                                                     $    1.38                                                              $    1.33                                                              $      5.14                                                              $      4.76
Diluted earnings                                                                                   $    1.37                                                              $    1.31                                                              $      5.08                                                              $      4.73
                                                                                                                                                                                                                                                                                                        
Dividends paid                                                                                     $     .30                                                              $     .27                                                              $      1.11                                                              $       .99
                                                                                                                                                                                                                                                                                                        
Total dividends                                                                                    $  17,291                                                              $  15,428                                                              $    63,840                                                              $    56,436
                                                                                                                                                                                                                                                                                                        
                                                                              
CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------------------------------------------------------------------------------------
                                                                           October 31                                           October 31
                                                                              2017                                                 2016
                                                                --------------------------------                     --------------------------------
                                                                                                                      
Cash and marketable securities                                                     $     90,383                                         $     67,239
Receivables                                                                             505,087                                              428,560
Inventories                                                                             264,266                                              220,361
Other current assets                                                  28,636                            29,415
                                                                -------------------- ----------                      -------------------- ----------
     Total current assets                                                               888,372                                              745,575
                                                                                                                      
Property, plant & equipment - net                                                       346,411                                              273,129
Other assets                                                       2,179,756                         1,401,879
                                                                -------------------- ----------                      -------------------- ----------
                                                                                   $  3,414,539                                         $  2,420,583
                                                                ==================== ==========                      ==================== ==========
                                                                                                                      
Notes payable and debt due within one year                                         $    326,587                                         $     40,234
Accounts payable and accrued liabilities                             321,159                           291,309
                                                                -------------------- ----------                      -------------------- ----------
     Total current liabilities                                                          647,746                                              331,543
                                                                                                                      
Long-term debt                                                                        1,256,397                                              942,771
Other liabilities                                                                       354,903                                              294,666
Total shareholders’ equity                                         1,155,493                           851,603
                                                                -------------------- ----------                      -------------------- ----------
                                                                                   $  3,414,539                                         $  2,420,583
                                                                ==================== ==========                      ==================== ==========
                                                                                                                      
                                          
------------------------------------------ -------------------- ---------------------------------------------------- --------------------------------
                                                                                                                      
Other information:
                                                                                                                      
                                                                                                                      
Employees                                                                                 7,532                                                6,127
                                                                                                                      
Common shares outstanding (000’s)                                                        57,715                                               57,307
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                     NORDSON CORPORATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     FINANCIAL HIGHLIGHTS
                                                                                                                                                                                                                                     (Dollars in thousands)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
FOURTH QUARTER PERIOD
Period Ending October 31, 2017
(Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                  Fourth Quarter                                                                                                                      % Growth over 2016                                                                                                                         Year-to-Date                                                                                                                         % Growth over 2016
SALES BY BUSINESS SEGMENT                                                                           2017                                                                   2016                                                   Volume                                   Currency                                    Total                                                     2017                                                                     2016                                                    Volume                                   Currency                                    Total
-------------------------------------------------------                      -----------------------------------------------                        -----------------------------------------------                        -------------------                       -------------------                       -------------------                       -------------------------------------------------                        -------------------------------------------------                        -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Adhesive dispensing systems                                                                     $ 247,873                                                              $ 234,305                                                  3.8 %                                     2.0 %                                     5.8 %                                                 $   916,019                                                              $   879,573                                                  4.3 %                                    -0.2 %                                     4.1 %
Advanced technology systems                                                                       251,716                                                                194,542                                                 29.2 %                                     0.2 %                                    29.4 %                                                     897,623                                                                  676,329                                                 33.4 %                                    -0.7 %                                    32.7 %
Industrial coating systems                                                      74,349                           80,436                              -8.1 %                                     0.5 %                                    -7.6 %                                  253,340                            253,092                               0.8 %                                    -0.7 %                                     0.1 %
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Total sales by business segment                                                                 $ 573,938                                           $ 509,283                              11.6 %                                     1.1 %                                    12.7 %                                                 $ 2,066,982                                           $ 1,808,994                              14.8 %                                    -0.5 %                                    14.3 %
                                                                             ==================== ======= ====================                      ==================== ======= ====================                      ========== =========                      ========== =========                      ========== =========                      ==================== ========= ====================                      ==================== ========= ====================                      ========== =========                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                  Fourth Quarter                                                                                                                                                                                                                                                                 Year-to-Date
OPERATING PROFIT BY BUSINESS SEGMENT                                                                2017                                                                   2016                                                                                                                                                                                                  2017                                                                     2016
-------------------------------------------------------                      -----------------------------------------------                        -----------------------------------------------                                                                                                                                                      -------------------------------------------------                        -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Adhesive dispensing systems                                                                     $  68,354                                                              $  55,383                                                                                                                                                                                            $   253,580                                                              $   229,143
Advanced technology systems                                                                        60,008                                                                 49,712                                                                                                                                                                                                228,062                                                                  159,531
Industrial coating systems                                                                         13,462                                                                 18,430                                                                                                                                                                                                 43,991                                                                   43,511
Corporate                                                                      (17,036 )                                           (12,662 )                                                                                                                                                                           (67,931 )                                             (43,754 )
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Total operating profit by business segment                                                      $ 124,788                                           $ 110,863                                                                                                                                                                         $   457,702                                           $   388,431  
                                                                             ==================== ======= ====================                      ==================== ======= ====================                                                                                                                                                    ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                  Fourth Quarter                                                                                                                      % Growth over 2016                                                                                                                         Year-to-Date                                                                                                                         % Growth over 2016
SALES BY GEOGRAPHIC REGION                                                                          2017                                                                   2016                                                   Volume                                   Currency                                    Total                                                     2017                                                                     2016                                                    Volume                                   Currency                                    Total
-------------------------------------------------------                      -----------------------------------------------                        -----------------------------------------------                        -------------------                       -------------------                       -------------------                       -------------------------------------------------                        -------------------------------------------------                        -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
United States                                                                                   $ 183,088                                                              $ 147,397                                                 24.2 %                                       -                                      24.2 %                                                 $   647,657                                                              $   531,117                                                 21.9 %                                       -                                      21.9 %
Americas                                                                                           39,055                                                                 33,834                                                 13.7 %                                     1.7 %                                    15.4 %                                                     147,026                                                                  124,657                                                 18.0 %                                    -0.1 %                                    17.9 %
Europe                                                                                            149,339                                                                129,635                                                  9.3 %                                     5.9 %                                    15.2 %                                                     530,812                                                                  503,869                                                  5.5 %                                    -0.2 %                                     5.3 %
Japan                                                                                              50,685                                                                 38,476                                                 42.7 %                                   -11.0 %                                    31.7 %                                                     147,189                                                                  122,054                                                 24.5 %                                    -3.9 %                                    20.6 %
Asia Pacific                                                                   151,771                          159,941                              -6.1 %                                     1.0 %                                    -5.1 %                                  594,298                            527,297                              13.2 %                                    -0.5 %                                    12.7 %
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Total Sales by Geographic Region                                                                $ 573,938                                           $ 509,283                              11.6 %                                     1.1 %                                    12.7 %                                                 $ 2,066,982                                           $ 1,808,994                              14.8 %                                    -0.5 %                                    14.3 %
                                                                             ==================== ======= ====================                      ==================== ======= ====================                      ========== =========                      ========== =========                      ========== =========                      ==================== ========= ====================                      ==================== ========= ====================                      ========== =========                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                    
------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------- ----------------------------------------- ----------------------------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ ----------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                  Fourth Quarter                                                                                                                                                                                                                                                                 Year-to-Date
FREE CASH FLOW BEFORE DIVIDENDS                                                                     2017                                                                   2016                                                                                                                                                                                                  2017                                                                     2016
-------------------------------------------------------                      -----------------------------------------------                        -----------------------------------------------                                                                                                                                                      -------------------------------------------------                        -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net income                                                                                      $  79,835                                                              $  75,867                                                                                                                                                                                            $   295,802                                                              $   271,843
Depreciation and amortization                                                                      25,488                                                                 17,480                                                                                                                                                                                                 90,854                                                                   70,304
Other non-cash charges                                                                             23,644                                                                  7,100                                                                                                                                                                                                 26,685                                                                   20,313
Changes in operating assets and liabilities                                      4,515                           35,977                                                                                                                                                          (63,668 )                                             (31,302 )
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
Net cash provided by operating activities                                                         133,482                                                                136,424                                                                                                                                                                                                349,673                                                                  331,158
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Additions to property, plant and equipment                                                        (22,234 )                                                              (15,399 )                                                                                                                                                                                              (71,558 )                                                                (60,851 )
Proceeds from the sale of property, plant and equipment                            101                              256                                                                                                                                                            4,007                              1,300  
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Free cash flow before dividends                                                                 $ 111,349                                           $ 121,281                                                                                                                                                                         $   282,122                                           $   271,607  
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Adjustments:
     Acquisition costs and adjustments, net of tax(1)                                -                              152                                                                                                                                                           12,695                              1,486  
                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                                                                                                    -------------------- --------- --------------------                      -------------------- --------- --------------------
Free cash flow before dividends, adjusted                                                       $ 111,349                                           $ 121,433                                                                                                                                                                         $   294,817                                           $   273,093  
                                                                             ==================== ======= ====================                      ==================== ======= ====================                                                                                                                                                    ==================== ========= ====================                      ==================== ========= ====================
(1)   Represents one-time costs, net of tax, associated with our 2017
                         and 2016 acquisitions, including the step up in the value of
                         acquired inventory and acquisition transaction costs that are
                         required to be expensed as incurred.
                          
                                                                                                                                                            
                                                                                                                       NORDSON CORPORATION
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                                                                                                          RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                                                       (Dollars in thousands except for per-share amounts)
                                                                                                                                                                                                                       
FOURTH QUARTER PERIOD
Period Ending October 31, 2017
(Unaudited)
                                                                                                                                                
                                                                                                                                                                                                                       
EBITDA and EBITDA per diluted share                                                             Fourth Quarter                                                                                              Year-to-Date
                                                                            2017                                              2016                                              2017                                                     2016
                                                                -----------------------------                     -----------------------------                     -----------------------------                     ------------------------------------------
                                                                                                                                                                                                                       
Net income                                                                         $  79,835                                         $  75,867                                         $ 295,802                                         $              271,843
Adjustments:
     Depreciation and amortization expense                                            25,488                                            17,480                                            90,854                                                         70,304
     Interest expense, net                                                            11,436                                             5,606                                            35,477                                                         20,594
     Income taxes                                                  33,035                         29,496                        124,489                                      96,651
                                                                -------------------- -------                      -------------------- -------                      -------------------- -------                      -------------------- --------------------
EBITDA                                                                             $ 149,794                                         $ 128,449                                         $ 546,622                                         $              459,392
Adjustments:
     Acquisition costs and adjustments (1)                              -                            211                         17,898                                       2,099
                                                                -------------------- -------                      -------------------- -------                      -------------------- -------                      -------------------- --------------------
EBITDA As Adjusted                                                                 $ 149,794                                         $ 128,660                                         $ 564,520                                         $              461,491
                                                                ==================== =======                      ==================== =======                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                       
EBITDA per diluted share                                                           $    2.57                                         $    2.22                                         $    9.39                                         $                 7.99
                                                                -------------------- -------                      -------------------- -------                      -------------------- -------                      -------------------- --------------------
EBITDA As Adjusted per diluted share                                               $    2.57                                         $    2.22                                         $    9.70                                         $                 8.02
                                                                -------------------- -------                      -------------------- -------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                                            
(1) Represents one-time costs associated with our 2017
and 2016 acquisitions, including the step up in the value of
acquired inventory and acquisition transaction costs that are
required to be expensed as incurred.
 
EBITDA and EBITDA per diluted share are non-GAAP financial measures
used by management to evaluate the Company’s ongoing operations.
EBITDA is defined as earnings before interest, taxes, depreciation
and amortization and EBITDA As Adjusted is defined as EBITDA plus
certain acquisition costs and adjustments. EBITDA per diluted share
is defined as EBITDA divided by the Company’s diluted weighted
average shares outstanding. EBITDA As Adjusted per diluted share is
defined as EBITDA As Adjusted divided by the Company’s diluted
weighted average shares outstanding.
 
                                                                                                                                 
                                                                                                       Fourth Quarter                                                                                             Year-to-Date
                                                                                     2017                        2016                                           2017                                   2016
                                                                          --------------------------                     --------------------------                     --------------------------                     -------------------------------------------------
                                                                                                                                                                                                                        
Diluted EPS as reported (U.S. GAAP)                                                          $ 1.37                                         $ 1.31                                         $ 5.08                                         $   4.73
                                                                                                                                                                                                                        
Short-term inventory purchase accounting adjustments                                              -                                              -                                           0.05                                             0.03
Acquisition costs                                                                                 -                                              -                                           0.17                                                -
Severance and restructuring                                                                    0.01                                           0.08                                           0.03                                             0.13
Litigation settlement                                                                             -                                              -                                              -                                            (0.01 )
Discrete tax items                                                                                -                                              -                                           0.04                                            (0.19 )
Other pre-tax items related to discrete tax benefits                           -                           -                           -                         (0.01 )
                                                                          -------------------- ----                      -------------------- ----                      -------------------- ----                      -------------------- ------ --------------------
                                                                                                                                                                                                                        
Diluted EPS as adjusted (Non-GAAP)                                                           $ 1.38                                         $ 1.39                                         $ 5.37                                         $   4.68  
                                                                          ==================== ====                      ==================== ====                      ==================== ====                      ==================== ====== ====================
                                                                                                                                                                                                                                                    
Adjusted Diluted EPS is not a measurement of financial performance
under GAAP, and should not be considered as an alternative to EPS
determined in accordance with GAAP. Management believes that EPS as
adjusted to exclude the items in the table above assist in
understanding the results of Nordson Corporation. Our calculations
of this non-GAAP financial measure may not be comparable to the
calculations of similarly titled measures reported by other
companies.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171213005983r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20171213005983/en/

SOURCE: Nordson Corporation"> <Property FormalName="PrimaryTwitterHandle" Value="@Nordson_Corp

Nordson Corporation 
Gregory A. Thaxton, 440-414-5388 
Senior Vice President and Chief Financial Officer 
Greg.Thaxton@nordson.com


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