Exhibit 99.1
Multi Packaging Solutions Announces Fourth Quarter Results
Strong cash flow provides for additional repayment of $20 million of debt in quarter
New York, NY, August 22, 2016 – Multi Packaging Solutions International Limited (NYSE: MPSX), (“MPS” or the “Company”), a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets, today announced results for 4Q and Fiscal Year 2016.
4Q FY 2016 vs 4Q FY 2015:
GAAP sales of $373.8 million vs $402.5 million
Negative foreign exchange impact of $6.0 million
GAAP operating income of $10.3 million vs $9.5 million
GAAP net loss attributable to MPS of $6.7 million vs $4.9 million
GAAP net loss attributable to MPS of $0.09 per share vs $0.08 per share
Non GAAP net income attributable to MPS of $2.2 million vs $5.1 million
Non GAAP net income attributable to MPS per share of $0.03 vs $0.08
Adjusted EBITDA of $49.4 million vs $54.0 million
Negative foreign exchange impact of $0.2 million
Adjusted EBITDA margin of 13.2% vs 13.4%
Early debt repayment of $20.0 million in June 2016
FY 2016 vs FY 2015:
GAAP sales of $1.66 billion vs $1.62 billion
Negative foreign exchange impact of $77.2 million
GAAP operating income of $84.1 million vs $71.0 million
GAAP net income attributable to MPS of $2.1 million vs $6.5 million
GAAP net income attributable to MPS of $0.03 per share vs $0.10 per share
Non GAAP net income attributable to MPS of $48.0 million vs $21.7 million
Non GAAP net income attributable to MPS of $0.66 per share vs $0.35 per share
Adjusted EBITDA of $254.3 million vs $231.0 million.
Negative foreign exchange impact of $12.4 million
Adjusted EBITDA margin of 15.3% vs 14.3%.
Early debt repayments totaling $60.0 million in 2016, excluding debt repayments from the IPO proceeds
Marc Shore, Chief Executive Officer, commented, “We had a very successful 2016, notwithstanding some significant challenges. EBITDA was a record $254.3 million despite a negative foreign exchange impact of $12.4 million. EBITDA margin grew by 100 basis points over the prior year to 15.3%. The business also generated approximately $109 million of free cash flow which allowed us to make early debt repayments of $60 million. In addition to the challenges of foreign exchange, we were disappointed with top-line sales. This was due to the fact that a number of our core customers’ businesses are below expectations in the current fiscal year.
As we enter fiscal 2017, we are enthusiastic about our prospects. Our facility improvement plan is gaining traction and other measures that we have taken to enhance profitability are also being implemented. The company also remains committed to sourcing strategic and accretive acquisitions and there are several opportunities in the pipeline. However, foreign exchange will continue to be a significant negative impact in fiscal 2017. The Brexit vote has resulted in a meaningful devaluation of the GBP and this will again impact both sales and EBITDA.”
Discussion of Fourth Quarter and Fiscal Year 2016 Results
GAAP net sales for 4Q FY 2016 and fiscal year 2016 were $373.8 million and $1,661.4 million vs net sales for 4Q FY 2015 and fiscal year 2015 of $402.5 million and $1,617.6 million. 4Q FY 2016 and fiscal year 2016 include negative foreign exchange effects of $6.0 million and $77.2 million when compared to the prior period. On an end market basis, Consumer, Healthcare and Media comprised 48.4%, 44.3% and 7.3% of total net sales in 4Q FY 2016 respectively, and 50.6%, 38.5% and 10.9% of total net sales for the fiscal year ended 2016, respectively.
Net sales in the quarter and for the year to date period were impacted principally due to the foreign exchange effects noted above, as well as a decline in non-toy media sales compared to the prior year ($4.8 million and $36.8 million, respectively), the decline in sales of a Disney toy project where Disney has exited the business ($10.4 million and $30.8 million, respectively), and the decline in UK tobacco sales due to UK tobacco legislation ($3.3 million and $14.2 million, respectively). The effect of the year over year Disney toy project and the UK tobacco decline is winding down and expected to impact year over year comparisons in 2017 by approximately $11.0 million and $5.9 million, respectively.
For the full fiscal year, gross margins continue to improve. Gross margin for the quarter and for the year to date period were 19.4% and 21.3% respectively, vs 20.6% and 20.5% in the corresponding prior year periods. Included in the 19.4% margin is approximately 170 basis points representing restructuring and plant closure costs. The improvement is principally due to the Company’s operational focus on plant manufacturing metrics, previously announced and achieved acquisition synergy targets, and appropriate cost savings capital investments.
GAAP operating income for 4Q FY 2016 was $10.3 million, vs $9.5 million for 4Q 2015. GAAP operating income for fiscal 2016 was $84.1 million vs $71.0 million for fiscal 2015. Included in the current fiscal period is approximately $27.0 million of stock compensation recorded in connection with the vesting of shares from the Company’s initial public offering. Excluding this charge, operating income for fiscal 2016 would have been $111.1 million, an increase of $40.1 million or approximately 230 basis points when compared to the same period in the prior year.
GAAP net loss attributable to MPS for 4Q FY 2016 was $6.7 million as compared to $4.9 million for 4Q FY 2015. GAAP net income attributable to MPS for the Fiscal Years 2016 and 2015 were $2.1 million and $6.5 million respectively. GAAP net income in 4Q FY 2016 and Fiscal Year 2016 include negative foreign exchange effects of $0.2 million and $12.4 million. In addition, GAAP net income for YTD 2016 includes the previously mentioned stock compensation expense.
Non GAAP net income attributable to MPS for 4Q FY 2016 and fiscal year 2016 were $2.2 million and $48.0 million vs non GAAP net income attributable to MPS for 4Q FY 2015 and fiscal year 2015 of $5.1 million and $21.7 million. Adjustments to non GAAP net income are principally net of tax adjustments related to stock compensation expense, restructuring charges associated with plant closures, foreign exchange, expenses associated with acquisition transactions and debt extinguishment related costs.
Adjusted EBITDA for 4Q FY 2016 was $49.4 million (13.2%) vs. $54.0 million (13.4%) in 4Q FY 2015. Adjusted EBITDA for the fiscal year 2016 was $254.3 million (15.3%) vs. $231.0 million (14.3%) in fiscal year 2015. Adjusted EBITDA margin was driven by the Company’s operational focus on plant manufacturing metrics, previously announced and achieved acquisition synergy targets, and appropriate cost savings capital investments.
Cash balances as of June 30, 2016 were $44.8 million. There were no amounts outstanding under our revolving credit facility. Total debt net of cash was $863.1 million including deferred finance fees and debt discount of $16.1 million. At June 30, 2016, trailing twelve months acquisition adjusted pro forma EBITDA was $255.2 million, and the pro forma leverage ratio was 3.46.
Fourth Quarter and Full Year 2016 Earnings Conference Call and Webcast
The Company will host a conference call on August 22, 2016 at 4:30pm ET, which can be accessed by dialing 877-705-6003 (domestic) or 201-493-6725 (international). Supplemental materials for today’s call can also be found on the investor relations portion of the Company’s website
The Company will also host a live webcast of its conference call which may be accessed on the Investor Relations section of the Company's website at multipkg.com. A replay will be available approximately three hours after the call, through August 29, 2016, accessible by dialing 877-870-5176 (domestic), or 858-384-5517 (international). The passcode for the replay is 13642269.
Non GAAP Financial Measures
The historical financial information included in this presentation includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted Net Income, Adjusted Operating Income, Adjusted EBITDA, Free Cash Flow and Free Cash Flow Yield. Management uses these non GAAP financial measures in the analysis of financial and operating performance because they assist in the evaluation of underlying trends in our business. Our use of the terms Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA, Free Cash Flow and Free Cash Flow Yield may differ from that of others in our industry. These items should not be considered as alternatives to net income (loss), operating income (loss), or any other performance measures prepared in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This presentation includes a reconciliation of certain non GAAP financial measures with the
most directly comparable financial measures calculated in accordance with GAAP.
About Multi Packaging Solutions
Multi Packaging Solutions is a leading global provider of value-added packaging solutions to a diverse customer base across the healthcare, consumer and multi-media markets. MPS provides its customers with an extensive array of print-based specialty packaging solutions, including premium folding cartons, inserts, labels and rigid packaging across a variety of substrates and finishes. MPS has manufacturing locations across North America, Europe and Asia.
Cautionary Statement Concerning Forward-Looking Statements
This release contains certain forward-looking statements regarding MPS and its subsidiaries. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of MPS’ control that may cause its business, industry, strategy, financing activities or actual results to differ materially. MPS undertakes no obligation to update or revise any of the forward looking statements contained herein, whether as a result of new information, future events or otherwise.
Contact:
Multi Packaging Solutions
Richard Zubek, Investor Relations
646-885-0005
ir@multipkg.com
Source: Multi Packaging Solutions International Limited
MPSX-IR
Multi Packaging Solutions International Limited And Subsidiaries
Consolidated Balance Sheets
(in thousands, except share amounts)
| | | | | | | |
| | June 30, | | June 30, | |
| | 2016 | | 2015 | |
Current assets | | | | | | | |
Cash and cash equivalents | | $ | 44,769 | | $ | 55,675 | |
Accounts receivable, net | | | 237,179 | | | 240,110 | |
Inventories | | | 165,617 | | | 171,836 | |
Prepaid expenses and other current assets | | | 30,742 | | | 26,892 | |
Total current assets | | | 478,307 | | | 494,513 | |
| | | | | | | |
Property, plant and equipment | | | | | | | |
Land | | | 52,093 | | | 58,316 | |
Buildings and improvements | | | 65,827 | | | 58,368 | |
Machinery and equipment | | | 393,206 | | | 373,639 | |
Furniture and fixtures | | | 15,580 | | | 13,056 | |
Construction in progress | | | 12,689 | | | 12,255 | |
Total | | | 539,395 | | | 515,634 | |
Less: Accumulated depreciation | | | (155,700) | | | (86,691) | |
Total property, plant and equipment, net | | | 383,695 | | | 428,943 | |
| | | | | | | |
Other assets | | | | | | | |
Intangible assets, net | | | 340,858 | | | 419,733 | |
Goodwill | | | 464,714 | | | 474,901 | |
Deferred income taxes | | | 7,210 | | | 16,451 | |
Other assets | | | 32,806 | | | 36,702 | |
Total assets | | $ | 1,707,590 | | $ | 1,871,243 | |
| | | | | | | |
Current liabilities | | | | | | | |
Accounts payable | | $ | 171,935 | | $ | 176,431 | |
Payroll and benefits | | | 36,977 | | | 51,606 | |
Other current liabilities | | | 40,892 | | | 46,097 | |
Short-term foreign borrowings | | | — | | | 3,488 | |
Current portion of long-term debt | | | 7,307 | | | 10,964 | |
Income taxes payable | | | 4,489 | | | 6,022 | |
Total current liabilities | | | 261,600 | | | 294,608 | |
| | | | | | | |
Long-term debt, less current portion | | | 900,516 | | | 1,169,626 | |
Deferred income taxes | | | 72,625 | | | 86,490 | |
Other long-term liabilities | | | 29,955 | | | 31,829 | |
Total liabilities | | | 1,264,696 | | | 1,582,553 | |
| | | | | | | |
Shareholders’ equity | | | | | | | |
Authorized share capital – $1.00 par value, 1,000,000,000 shares authorized | | | | | | | |
Preference shares – no shares issued | | | — | | | — | |
Common shares – 77,452,946 and 61,939,432 issued and outstanding | | | 77,453 | | | 61,939 | |
Additional paid-in capital | | | 469,698 | | | 278,695 | |
Accumulated deficit | | | (43,233) | | | (45,365) | |
Accumulated other comprehensive loss | | | (63,290) | | | (13,287) | |
Total Multi Packaging Solutions International Limited shareholders’ equity | | | 440,628 | | | 281,982 | |
Noncontrolling interest | | | 2,266 | | | 6,708 | |
Total shareholders’ equity | | | 442,894 | | | 288,690 | |
Total liabilities and shareholders’ equity | | $ | 1,707,590 | | $ | 1,871,243 | |
Multi Packaging Solutions International Limited And Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share amounts)
| | | | | | | | | | | | | |
| Three Months Ended | | | Fiscal Year Ended | |
| June 30, | | | June 30, | |
| 2016 | | 2015 | | | 2016 | | 2015 | |
Net sales | $ | 373,836 | | $ | 402,524 | | | $ | 1,661,428 | | $ | 1,617,640 | |
| | | | | | | | | | | | | |
Cost of goods sold | | 301,241 | | | 319,604 | | | | 1,307,020 | | | 1,285,673 | |
Gross profit | | 72,595 | | | 82,920 | | | | 354,408 | | | 331,967 | |
| | | | | | | | | | | | | |
Selling, general and administrative expenses | | | | | | | | | | | | | |
Selling, general and administrative expenses | | 61,557 | | | 61,586 | | | | 239,706 | | | 241,638 | |
Stock based and deferred compensation expense | | (295) | | | 4,319 | | | | 26,769 | | | 5,722 | |
Transaction related expenses | | 1,053 | | | 7,532 | | | | 3,838 | | | 13,630 | |
Total selling, general and administrative expenses | | 62,315 | | | 73,437 | | | | 270,313 | | | 260,990 | |
| | | | | | | | | | | | | |
Operating income (loss) | | 10,280 | | | 9,483 | | | | 84,095 | | | 70,977 | |
| | | | | | | | | | | | | |
Other (expense) income, net | | (1,606) | | | (18) | | | | (6,403) | | | 10,625 | |
Debt extinguishment charges | | (36) | | | (1,019) | | | | (3,967) | | | (1,019) | |
Interest expense | | (14,902) | | | (21,395) | | | | (64,543) | | | (75,437) | |
Total other expense, net | | (16,544) | | | (22,432) | | | | (74,913) | | | (65,831) | |
| | | | | | | | | | | | | |
Income (loss) before income taxes | | (6,264) | | | (12,949) | | | | 9,182 | | | 5,146 | |
| | | | | | | | | | | | | |
Income tax (expense) benefit | | (1,102) | | | 8,092 | | | | (7,855) | | | 1,880 | |
| | | | | | | | | | | | | |
Consolidated net income (loss) | | (7,366) | | | (4,857) | | | | 1,327 | | | 7,026 | |
| | | | | | | | | | | | | |
Net (income) loss attributable to noncontrolling interest | | 625 | | | (2) | | | | 805 | | | (527) | |
| | | | | | | | | | | | | |
Net income (loss) attributable to common shareholders of
Multi Packaging Solutions International Limited | $ | (6,741) | | $ | (4,859) | | | $ | 2,132 | | $ | 6,499 | |
| | | | | | | | | | | | | |
Net income (loss) attributable to common shareholders of
Multi Packaging Solutions International Limited per share: | | | | | | | | | | | | | |
Basic | $ | (0.09) | | $ | (0.08) | | | $ | 0.03 | | $ | 0.10 | |
Diluted | $ | (0.09) | | $ | (0.08) | | | $ | 0.03 | | $ | 0.10 | |
| | | | | | | | | | | | | |
Weighted-average number of common shares outstanding: | | | | | | | | | | | | | |
Basic | | 77,453 | | | 61,939 | | | | 72,661 | | | 61,939 | |
Diluted | | 77,453 | | | 61,939 | | | | 72,661 | | | 61,939 | |
| | | | | | | | | | | | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Cumulative foreign currency translation adjustment | $ | (21,607) | | $ | 14,018 | | | $ | (44,371) | | $ | (38,813) | |
Adjustment on available-for-sale securities | | (72) | | | (108) | | | | 17 | | | 6 | |
Pension adjustments | | (3,550) | | | 13,570 | | | | (5,637) | | | 12,780 | |
Total other comprehensive (loss) income | | (25,229) | | | 27,480 | | | | (49,991) | | | (26,027) | |
| | | | | | | | | | | | | |
Comprehensive loss | | (32,595) | | | 22,623 | | | | (48,664) | | | (19,001) | |
Comprehensive loss (income) attributable to non-controlling interests | | 625 | | | (151) | | | | 805 | | | (151) | |
Comprehensive loss attributable to shareholders of
Multi Packaging Solutions International Limited | $ | (31,970) | | $ | 22,472 | | | $ | (47,859) | | $ | (19,152) | |
Multi Packaging Solutions International Limited And Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
| | | | | | | | | | | | | |
| Three Months Ended | | | Fiscal Year Ended | |
| June 30, | | | June 30, | |
| 2016 | | 2015 | | | 2016 | | 2015 | |
Operating Activities | | | | | | | | | | | | | |
Net income | $ | (7,366) | | $ | (4,857) | | | $ | 1,327 | | $ | 7,026 | |
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities: | | | | | | | | | | | | | |
Depreciation expense | | 17,858 | | | 19,950 | | | | 73,683 | | | 78,035 | |
Amortization expense | | 13,652 | | | 13,768 | | | | 55,317 | | | 53,668 | |
Amortization of debt discount and deferred financing fees | | 959 | | | 1,103 | | | | 4,061 | | | 4,453 | |
Debt extinguishment charges | | 36 | | | 1,019 | | | | 3,967 | | | 1,019 | |
Deferred income taxes | | 4,036 | | | (4,070) | | | | (460) | | | (9,477) | |
Stock compensation | | 10 | | | 4,178 | | | | 26,054 | | | 5,159 | |
Unrealized foreign currency loss (gain) | | 242 | | | (8,490) | | | | 3,060 | | | (11,355) | |
Impairment charges | | 2,026 | | | — | | | | 2,026 | | | — | |
Other | | 1,268 | | | 3,657 | | | | 3,105 | | | 4,077 | |
Change in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | 10,350 | | | 26,577 | | | | (1,537) | | | 13,615 | |
Inventories | | (9,324) | | | (10,315) | | | | (4,093) | | | 3,021 | |
Prepaid expenses and other current assets | | (3,893) | | | 5,273 | | | | (3,538) | | | 1,137 | |
Other assets | | (3,834) | | | (15,059) | | | | (11,035) | | | (10,246) | |
Accounts payable | | 14,842 | | | 21,720 | | | | 1,347 | | | (17,775) | |
Payroll and benefits | | 80 | | | 5,641 | | | | (13,030) | | | 3,530 | |
Other current liabilities | | 4,013 | | | (11,235) | | | | (5,997) | | | (4,239) | |
Income taxes payable | | (1,048) | | | (4,288) | | | | 1,157 | | | 2,653 | |
Other long-term liabilities | | (152) | | | (1,176) | | | | (2,742) | | | (15,684) | |
Net cash and cash equivalents provided by operating activities | | 43,755 | | | 43,396 | | | | 132,672 | | | 108,617 | |
| | | | | | | | | | | | | |
Investing Activities | | | | | | | | | | | | | |
Additions to property, plant and equipment | | (22,235) | | | (21,857) | | | | (58,954) | | | (59,535) | |
Additions to intangible assets | | (32) | | | (31) | | | | (297) | | | (207) | |
Proceeds from sale of assets | | 1,610 | | | 945 | | | | 4,226 | | | 6,907 | |
Acquisitions of businesses, net of cash acquired | | — | | | 514 | | | | (10,685) | | | (137,269) | |
Net cash and cash equivalents used in investing activities | | (20,657) | | | (20,429) | | | | (65,710) | | | (190,104) | |
| | | | | | | | | | | | | |
Financing Activities | | | | | | | | | | | | | |
Proceeds from initial public offering | | — | | | — | | | | 186,424 | | | — | |
Payments of offering costs | | — | | | — | | | | (7,024) | | | — | |
Proceeds from issuance of long-term debt | | — | | | (3,195) | | | | — | | | 133,650 | |
Proceeds from short-term borrowings | | 3,126 | | | 22,607 | | | | 47,628 | | | 171,456 | |
Payments on short-term borrowings | | (7,352) | | | (23,048) | | | | (51,107) | | | (174,442) | |
Payments on long-term debt | | (19,574) | | | (3,224) | | | | (255,201) | | | (15,816) | |
Debt issuance costs | | — | | | (61) | | | | — | | | (5,020) | |
Net cash and cash equivalents (used in) provided by financing activities | | (23,800) | | | (6,921) | | | | (79,280) | | | 109,828 | |
| | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | | (1,080) | | | 474 | | | | 1,412 | | | (199) | |
(Decrease) increase in cash and cash equivalents | | (1,782) | | | 16,520 | | | | (10,906) | | | 28,142 | |
Cash and cash equivalents—beginning | | 46,551 | | | 39,155 | | | | 55,675 | | | 27,533 | |
Cash and cash equivalents—ending | $ | 44,769 | | $ | 55,675 | | | $ | 44,769 | | $ | 55,675 | |
Multi Packaging Solutions International Limited And Subsidiaries
Reconciliation of Non‐GAAP Results
Adjusted EBITDA, Adjusted Operating Income and Adjusted Net Income
| | | | | | | | | | | | | |
Non-GAAP Adjusted EBITDA | | For the Three Months Ended | | For the Fiscal Year Ended | |
| | June 30, | | June 30, | |
(amounts in thousands) | | 2016 | | 2015 | | 2016 | | 2015 | |
Consolidated net income | | $ | (7,366) | | $ | (4,857) | | $ | 1,327 | | $ | 7,026 | |
Depreciation and amortization | | | 31,510 | | | 33,718 | | | 129,000 | | | 131,703 | |
Interest expense | | | 14,902 | | | 21,395 | | | 64,543 | | | 75,437 | |
Income tax expense | | | 1,102 | | | (8,092) | | | 7,855 | | | (1,880) | |
EBITDA | | | 40,148 | | | 42,164 | | | 202,725 | | | 212,286 | |
| | | | | | | | | | | | | |
Adjustments related to operating income | | | | | | | | | | | | | |
Transaction related expenses | | | 1,053 | | | 7,532 | | | 3,838 | | | 13,630 | |
Stock based and deferred compensation expenses | | | (296) | | | 4,319 | | | 26,768 | | | 5,722 | |
Purchase accounting adjustments | | | 88 | | | 1,070 | | | 966 | | | 3,094 | |
Restructuring related costs | | | 6,415 | | | 929 | | | 10,684 | | | 6,419 | |
Loss on sale of fixed assets | | | 812 | | | (61) | | | 1,410 | | | 584 | |
Other adjustments to operating income | | | (512) | | | (3,152) | | | (2,691) | | | (1,928) | |
Adjustments related to operating income (A) | | | 7,560 | | | 10,637 | | | 40,975 | | | 27,521 | |
| | | | | | | | | | | | | |
Adjustments related to non-operating income | | | | | | | | | | | | | |
Foreign currency (gains) losses | | | 1,333 | | | 1,664 | | | 5,183 | | | (12,171) | |
Debt extinguishment charges | | | 37 | | | 1,019 | | | 3,968 | | | 1,019 | |
Other adjustments to non-operating income | | | 272 | | | (1,470) | | | 1,452 | | | 2,307 | |
Adjustments related to non-operating income | | | 1,642 | | | 1,213 | | | 10,603 | | | (8,845) | |
| | | | | | | | | | | | | |
Total adjustments (B) | | | 9,202 | | | 11,850 | | | 51,578 | | | 18,676 | |
| | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 49,350 | | $ | 54,014 | | $ | 254,303 | | $ | 230,962 | |
| | | | | | | | | | | | | |
Pre-acquisition Adjusted EBITDA | | | — | | | 613 | | | 851 | | | 16,172 | |
Proforma Adjusted EBITDA | | $ | 49,350 | | $ | 54,627 | | $ | 255,154 | | $ | 247,134 | |
| | | | | | | | | | | | | |
Non-GAAP Adjusted Operating Income | | For the Three Months Ended | | For the Fiscal Year Ended | |
| | June 30, | | June 30, | |
(amounts in thousands) | | 2016 | | 2015 | | 2016 | | 2015 | |
Operating income | | $ | 10,280 | | $ | 9,483 | | $ | 84,095 | | $ | 70,977 | |
Adjustments related to operating income (A) | | | 7,560 | | | 10,637 | | | 40,975 | | | 27,521 | |
Adjusted operating income | | $ | 17,840 | | $ | 20,120 | | $ | 125,070 | | $ | 98,498 | |
| | | | | | | | | | | | | |
Non-GAAP Adjusted Net Income | | For the Three Months Ended | | For the Fiscal Year Ended | |
| | June 30, | | June 30, | |
(amounts in thousands, except per share data) | | 2016 | | 2015 | | 2016 | | 2015 | |
Consolidated net income | | $ | (7,366) | | $ | (4,857) | | $ | 1,327 | | $ | 7,026 | |
Adjustments related to net income (B) | | | 9,202 | | | 11,850 | | | 51,578 | | | 18,676 | |
Tax impact of adjusting entries | | | (268) | | | (1,862) | | | (5,713) | | | (3,496) | |
Adjusted net income | | | 1,568 | | | 5,131 | | | 47,192 | | | 22,206 | |
| | | | | | | | | | | | | |
Net (income) loss attributable to noncontrolling interest | | | 625 | | | (2) | | | 805 | | | (527) | |
Adjusted net income attributable to shareholders of
Multi Packaging Solutions International Limited | | $ | 2,193 | | $ | 5,129 | | $ | 47,997 | | $ | 21,679 | |
| | | | | | | | | | | | | |
Weighted average number of
common shares outstanding – diluted | | | 77,453 | | | 61,939 | | | 72,661 | | | 61,939 | |
| | | | | | | | | | | | | |
Adjusted net income per share | | $ | 0.03 | | $ | 0.08 | | $ | 0.66 | | $ | 0.35 | |
Multi Packaging Solutions International Limited And Subsidiaries
Net Sales by Segment and Market
| | | | | | | | | | | | | |
| For the Three Months Ended | | | For the Fiscal Year Ended | |
| June 30, | | | June 30, | |
(amounts in thousands) | 2016 | | 2015 | | | 2016 | | 2015 | |
North America | | | | | | | | | | | | | |
Consumer | $ | 74,547 | | $ | 85,029 | | | $ | 330,060 | | $ | 306,758 | |
Healthcare | | 75,088 | | | 72,406 | | | | 294,977 | | | 277,832 | |
Multi-Media | | 23,975 | | | 38,312 | | | | 159,416 | | | 153,298 | |
| $ | 173,610 | | $ | 195,747 | | | $ | 784,453 | | $ | 737,888 | |
| | | | | | | | | | | | | |
Europe | | | | | | | | | | | | | |
Consumer | $ | 91,500 | | $ | 102,632 | | | $ | 441,891 | | $ | 469,136 | |
Healthcare | | 84,453 | | | 79,791 | | | | 323,055 | | | 346,777 | |
Multi-Media | | 3,168 | | | 683 | | | | 21,051 | | | 4,478 | |
| $ | 179,121 | | $ | 183,106 | | | $ | 785,997 | | $ | 820,391 | |
| | | | | | | | | | | | | |
Asia | | | | | | | | | | | | | |
Consumer | $ | 14,902 | | $ | 19,512 | | | $ | 68,662 | | $ | 39,988 | |
Healthcare | | 6,203 | | | 4,159 | | | | 22,316 | | | 19,373 | |
| $ | 21,105 | | $ | 23,671 | | | $ | 90,978 | | $ | 59,361 | |
| | | | | | | | | | | | | |
Total | $ | 373,836 | | $ | 402,524 | | | $ | 1,661,428 | | $ | 1,617,640 | |
Multi Packaging Solutions International Limited And Subsidiaries
Free Cash Flow Reconciliation
| | | | | | | |
| | For the Fiscal Year Ended | |
| | June 30, | |
| | 2016 | | 2015 | |
(amounts in thousands, except percentages) | | | | | | | |
Adjusted EBITDA | | $ | 254,303 | | $ | 230,962 | |
Less: Capital Expenditures | | | (58,954) | | | (59,535) | |
Less: Cash Interest | | | (60,482) | | | (70,609) | |
Less: Cash Taxes | | | (12,596) | | | (6,158) | |
Less: Change in Core Working Capital (1) | | | (4,283) | | | (1,139) | |
Less: Pension Payments (2) | | | (8,880) | | | (9,420) | |
Free Cash Flow | | $ | 109,108 | | $ | 84,101 | |
| | | | | | | |
Market Capitalization (3) | | $ | 1,123,068 | | $ | 1,123,068 | |
| | | | | | | |
Free Cash Flow Yield (4) | | | 9.7% | | | 7.5% | |
| (1) | | Represents the impact of total cash flows associated with the change in accounts receivable, inventory and accounts payable, as per the Consolidated Statements of Cash Flows |
| (2) | | Represents cash payments made for the Field Group Pension Plan in the United Kingdom |
| (3) | | Represents estimated market capitalization using total shares outstanding as of June 30, 2016 (77,452,946) times estimated market price of MPSX shares ($14.50 per share) |
| (4) | | Represents Free Cash Flow divided by Market Capitalization |
