SCHN 2017 Proxy Statement

Compensation Discussion and Analysis Consolidated Operating Income (Loss) (in thousands) Adjusted Consolidated Operating Income (in thousands) * 2016 2017 $56,013 ($7,842) 2016 $54,043 $27,772 2017 Diluted Earnings Per Share Adjusted Diluted Earnings Per Share * 2016 2017 2016 2017 ($0.66) $1.60 $1.53 $0.69 Total Debt (in thousands) $192,518 2016 2017 $145,124 Total Debt, Net of Cash (in thousands) * $165,699 $137,837 2016 2017 * See pages 47-49 of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on October 24, 2017 for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. In addition to the significant improvements in operating performance as shown in the charts above, the following is a summary of our fiscal 2017 accomplishments. Additional detail can be found in our Annual Report on Form 10-K. Notice of Annual Meeting of Shareholders and 2017 Proxy Statement | 35