Exhibit 99.1
Multi Packaging Solutions Announces Second Quarter Results
New York, NY, February 13, 2017 – 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 its second quarter ended December 31, 2016.
2Q FY 2017 vs. 2Q FY 2016:
| · | | GAAP net sales of $386.1 million vs. $429.4 million |
| § | | Negative foreign exchange impact of $20.9 million |
| · | | GAAP operating income of $24.9 million vs. $7.1 million |
| · | | GAAP net income (loss) attributable to MPS of $(1.1) million vs. $(7.9) million |
| · | | GAAP net income (loss) attributable to MPS of $(0.01) per share vs. $(0.11) per share |
| · | | Non GAAP net income attributable to MPS of $11.6 million vs. $18.9 million |
| · | | Non GAAP net income attributable to MPS of $0.15 per share vs. $0.26 per share |
| · | | Adjusted EBITDA of $57.5 million vs. $69.4 million |
| § | | Negative foreign exchange impact of $2.3 million |
| · | | Adjusted EBITDA margin of 14.9% vs. 16.2% |
YTD FY 2017 vs. YTD FY 2016:
| · | | GAAP net sales of $794.0 million vs. $888.4 million |
| § | | Negative foreign exchange impact of $38.3 million |
| · | | GAAP operating income of $52.6 million vs. $47.8 million |
| · | | GAAP net income attributable to MPS of $12.1 million vs. $5.1 million |
| · | | GAAP net income attributable to MPS of $0.16 per share vs. $0.08 per share |
| · | | Non GAAP net income attributable to MPS of $24.6 million vs. $37.0 million |
| · | | Non GAAP net income attributable to MPS of $0.32 per share vs. $0.55 per share |
| · | | Adjusted EBITDA of $117.6 million vs. $146.6 million |
| § | | Negative foreign exchange impact of $4.8 million |
| · | | Adjusted EBITDA margin of 14.8% vs. 16.5% |
2Q and Recent Activity
| · | | Completed acquisitions of i3 Plastic Cards (North America transaction card market) and AJS (European label market) |
| § | | Combined trailing 12 months revenue of acquired businesses was $25 million |
| · | | Completed debt refinancing transaction in October 2016 resulting in annual run rate savings to interest expense of approximately $10 million |
| · | | Announced closure of Louisville, Kentucky media plant and Portsmouth, United Kingdom tobacco plant |
| · | | Announced that a definitive agreement was reached with WestRock Company to acquire all of the outstanding shares of MPS |
Marc Shore, Chief Executive Officer, commented “As expected, we continued to face headwinds in our fiscal 2nd quarter. Notwithstanding, we have taken several steps to drive organic growth and operational improvements. We completed two strategic acquisitions during the quarter and continue to pursue other opportunities. Furthermore, we announced the acquisition of Multi Packaging Solutions with WestRock. We believe this acquisition will further enhance our offering to our customers and have long-term benefit for our employees.”
Discussion of Fiscal 2017 Second Quarter Results
The Company completed its initial public offering in October 2015, and the comparability of certain amounts below, such as operating income, interest expense and earnings per share are significantly impacted on a year over year basis due to the offering.
GAAP net sales for 2Q FY 2017 were $386.1 million vs. net sales for 2Q FY 2016 of $429.4 million, which includes negative foreign exchange effects in 2Q FY 2017 of $20.9 million when compared to the prior year period. On a segment basis, North American sales decreased $20.0 million from the prior year principally due to the decline in the multi-media market and some weakness in the consumer market due to weaker transaction card sales. European sales decreased $19.9 million principally due to foreign exchange. Sales in Europe decreased by $6.8 million for tobacco and certain drinks customers, which was offset by stonger healthcare sales, which on a constant currency basis increased approximately 7%. Asia sales decreased $3.3 million principally due to foreign exchange and some weakness in the consumer market due to reduced demand from certain customers.
Gross profit percentage in 2Q FY 2017 was 21.4% compared to 22.3% in the prior year. The decline is principally due to the mix of sales and lower sales impacting absorption in the current quarter as compared to the prior year period.
GAAP operating income for 2Q FY 2017 was $24.9 million vs. $7.1 million for 2Q FY 2016. Operating income in the prior year period was most significantly impacted by the recording of $27.2 million of stock based and deferred compensation expense principally associated with the vesting of incentive units held by employees at the date of the Company’s initial public offering.
Cash balances as of December 31, 2016 were $44.6 million. There were no amounts outstanding under the Company’s revolving credit facility as of that date. Total debt, net of cash, was $843.7 million including deferred finance fees and debt discount of $15.7 million. In December, the Company made a voluntary prepayment of debt of $15.0 million. At December 31, 2016, trailing twelve months acquisition adjusted pro forma EBITDA was $228.7 million, and the pro forma leverage ratio was 3.81.
Acquisition by WestRock Company
On January 24, 2017, the Company and WestRock Company announced that a definitive agreement was reached for WestRock to acquire all of the outstanding shares of MPS for $18.00 per share in cash and the assumption of an estimated $873 million in net debt, for a total enterprise value of $2.28 billion. The transaction is subject to a vote by MPS’ shareholders and is expected to close in the Company’s fourth fiscal quarter, subject to the receipt of applicable regulatory approvals and other customary closing conditions. The two largest shareholders of MPS, representing approximately 57% of the shares outstanding, have agreed to vote all of their shares in favor of the transaction.
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, Adjusted Free Cash Flow and proforma Adjusted EBITDA. 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, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow and proforma Adjusted EBITDA 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, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow and proforma 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
646-885-0165
ir@multipkg.com
Source: Multi Packaging Solutions International Limited
MPSX-IR
Multi Packaging Solutions International Limited And Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
| | | | | | | |
| | December 31, | | June 30, | |
| | 2016 | | 2016 | |
| | (unaudited) | | | | |
Current assets | | | | | | | |
Cash and cash equivalents | | $ | 44,644 | | $ | 44,769 | |
Accounts receivable, net | | | 234,115 | | | 237,179 | |
Inventories | | | 155,877 | | | 165,617 | |
Prepaid expenses and other current assets | | | 26,189 | | | 30,742 | |
Total current assets | | | 460,825 | | | 478,307 | |
| | | | | | | |
Property, plant and equipment | | | | | | | |
Land | | | 48,390 | | | 52,093 | |
Buildings and improvements | | | 67,173 | | | 65,827 | |
Machinery and equipment | | | 391,157 | | | 393,206 | |
Furniture and fixtures | | | 15,852 | | | 15,580 | |
Construction in progress | | | 19,054 | | | 12,689 | |
Total | | | 541,626 | | | 539,395 | |
Less: Accumulated depreciation | | | (176,835) | | | (155,700) | |
Total property, plant and equipment, net | | | 364,791 | | | 383,695 | |
| | | | | | | |
Other assets | | | | | | | |
Intangible assets, net | | | 312,429 | | | 340,858 | |
Goodwill | | | 474,595 | | | 464,714 | |
Deferred income taxes | | | 6,787 | | | 7,210 | |
Other assets | | | 30,445 | | | 32,806 | |
Total assets | | $ | 1,649,872 | | $ | 1,707,590 | |
| | | | | | | |
Current liabilities | | | | | | | |
Accounts payable | | $ | 166,233 | | $ | 171,935 | |
Payroll and benefits | | | 29,542 | | | 36,977 | |
Other current liabilities | | | 37,767 | | | 40,892 | |
Current portion of long-term debt | | | 8,385 | | | 7,307 | |
Income taxes payable | | | 8,094 | | | 4,489 | |
Total current liabilities | | | 250,021 | | | 261,600 | |
| | | | | | | |
Long-term debt, less current portion | | | 879,974 | | | 900,516 | |
Deferred income taxes | | | 68,725 | | | 72,625 | |
Other long-term liabilities | | | 30,446 | | | 29,955 | |
Total liabilities | | | 1,229,166 | | | 1,264,696 | |
| | | | | | | |
Shareholders’ equity | | | | | | | |
Authorized share capital – $1.00 par value, 1,000,000,000 shares authorized | | | | | | | |
Preference shares – no shares issued | | | — | | | — | |
Common shares – 77,695,438 and 77,452,946 issued | | | 77,695 | | | 77,453 | |
Additional paid-in capital | | | 474,331 | | | 469,698 | |
Accumulated deficit | | | (31,109) | | | (43,233) | |
Accumulated other comprehensive loss | | | (101,063) | | | (63,290) | |
Total Multi Packaging Solutions International Limited shareholders’ equity | | | 419,854 | | | 440,628 | |
Noncontrolling interest | | | 852 | | | 2,266 | |
Total shareholders’ equity | | | 420,706 | | | 442,894 | |
Total liabilities and shareholders’ equity | | $ | 1,649,872 | | $ | 1,707,590 | |
Multi Packaging Solutions International Limited And Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share amounts)
(unaudited)
| | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | |
| | December 31, | | December 31, | |
| | 2016 | | 2015 | | 2016 | | 2015 | |
Net sales | | $ | 386,126 | | $ | 429,357 | | $ | 793,951 | | $ | 888,408 | |
| | | | | | | | | | | | | |
Cost of goods sold | | | 303,493 | | | 333,632 | | | 626,974 | | | 693,342 | |
Gross profit | | | 82,633 | | | 95,725 | | | 166,977 | | | 195,066 | |
| | | | | | | | | | | | | |
Selling, general and administrative expenses | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | 55,955 | | | 59,306 | | | 111,980 | | | 117,890 | |
Stock based and deferred compensation expense | | | 1,225 | | | 27,232 | | | 1,534 | | | 26,960 | |
Transaction related expenses | | | 538 | | | 2,064 | | | 822 | | | 2,414 | |
Total selling, general and administrative expenses | | | 57,718 | | | 88,602 | | | 114,336 | | | 147,264 | |
| | | | | | | | | | | | | |
Operating income | | | 24,915 | | | 7,123 | | | 52,641 | | | 47,802 | |
| | | | | | | | | | | | | |
Other income (expense), net | | | 2,970 | | | 100 | | | 5,907 | | | (3,535) | |
Debt extinguishment charges | | | (16,569) | | | (3,867) | | | (16,569) | | | (3,867) | |
Interest expense | | | (12,903) | | | (16,016) | | | (27,545) | | | (34,745) | |
Total other expense, net | | | (26,502) | | | (19,783) | | | (38,207) | | | (42,147) | |
| | | | | | | | | | | | | |
Income (loss) before income taxes | | | (1,587) | | | (12,660) | | | 14,434 | | | 5,655 | |
| | | | | | | | | | | | | |
Income tax (expense) benefit | | | 57 | | | 4,656 | | | (3,095) | | | (575) | |
| | | | | | | | | | | | | |
Consolidated net income (loss) | | | (1,530) | | | (8,004) | | | 11,339 | | | 5,080 | |
| | | | | | | | | | | | | |
Net loss attributable to noncontrolling interest | | | 405 | | | 87 | | | 785 | | | 10 | |
| | | | | | | | | | | | | |
Net income (loss) attributable to shareholders of
Multi Packaging Solutions International Limited | | $ | (1,125) | | $ | (7,917) | | $ | 12,124 | | $ | 5,090 | |
| | | | | | | | | | | | | |
Net income (loss) attributable to shareholders of
Multi Packaging Solutions International Limited per share: | | | | | | | | | | | | | |
Basic | | $ | (0.01) | | $ | (0.11) | | $ | 0.16 | | $ | 0.08 | |
Diluted | | $ | (0.01) | | $ | (0.11) | | $ | 0.16 | | $ | 0.08 | |
| | | | | | | | | | | | | |
Weighted-average number of common shares outstanding: | | | | | | | | | | | | | |
Basic | | | 77,604 | | | 73,826 | | | 77,528 | | | 67,817 | |
Diluted | | | 77,604 | | | 73,826 | | | 77,528 | | | 67,817 | |
| | | | | | | | | | | | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Cumulative foreign currency translation adjustment | | $ | (27,629) | | $ | (11,880) | | $ | (36,497) | | $ | (21,572) | |
Adjustment on available-for-sale securities | | | 4 | | | (5) | | | (12) | | | (22) | |
Pension adjustments | | | (775) | | | 662 | | | (1,264) | | | 1,454 | |
Total other comprehensive loss | | | (28,400) | | | (11,223) | | | (37,773) | | | (20,140) | |
| | | | | | | | | | | | | |
Comprehensive income (loss) | | | (29,930) | | | (19,227) | | | (26,434) | | | (15,060) | |
Comprehensive loss (income) attributable to non-controlling interests | | | 405 | | | — | | | 785 | | | (17) | |
Comprehensive income (loss) attributable to shareholders of
Multi Packaging Solutions International Limited | | $ | (29,525) | | $ | (19,227) | | $ | (25,649) | �� | $ | (15,077) | |
Multi Packaging Solutions International Limited And Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| | | | | | | |
| | Six Months Ended December 31, | |
| | 2016 | | 2015 | |
Operating Activities | | | | | | | |
Net income | | $ | 11,339 | | $ | 5,080 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | | | | | | | |
Depreciation expense | | | 32,925 | | | 37,930 | |
Amortization expense | | | 25,218 | | | 28,108 | |
Amortization of deferred financing fees | | | 2,043 | | | 2,227 | |
Debt extinguishment non-cash charges | | | 3,296 | | | 3,867 | |
Deferred income taxes | | | (2,175) | | | (5,243) | |
Stock compensation | | | 1,246 | | | 25,962 | |
Unrealized foreign currency (gain) loss | | | (4,801) | | | 1,715 | |
Other | | | (2,074) | | | 850 | |
Change in assets and liabilities: | | | | | | | |
Accounts receivable | | | (3,313) | | | (8,273) | |
Inventories | | | 3,188 | | | 2,421 | |
Prepaid expenses and other current assets | | | 3,581 | | | 369 | |
Other assets | | | (639) | | | (4,239) | |
Accounts payable | | | 308 | | | (8,572) | |
Payroll and benefits | | | (6,170) | | | (12,160) | |
Other current liabilities | | | (4,952) | | | (4,789) | |
Income taxes payable | | | 3,744 | | | (894) | |
Other long-term liabilities | | | (1,900) | | | (1,543) | |
Net cash and cash equivalents provided by operating activities | | | 60,864 | | | 62,816 | |
| | | | | | | |
Investing Activities | | | | | | | |
Additions to property, plant and equipment | | | (26,047) | | | (24,507) | |
Additions to intangible assets | | | (74) | | | (68) | |
Proceeds from sale of assets | | | 1,493 | | | 1,003 | |
Acquisitions of businesses, net of cash acquired | | | (28,273) | | | (2,496) | |
Net cash and cash equivalents used in investing activities | | | (52,901) | | | (26,068) | |
| | | | | | | |
Financing Activities | | | | | | | |
Proceeds from initial public offering | | | — | | | 186,424 | |
Payments of offering costs | | | — | | | (6,125) | |
Proceeds from issuance of long-term debt | | | 218,900 | | | — | |
Proceeds from short-term borrowings | | | 24,317 | | | 41,619 | |
Payments on short-term borrowings | | | (24,317) | | | (40,876) | |
Payments on long-term debt | | | (221,256) | | | (216,809) | |
Debt issuance costs | | | (3,985) | | | — | |
Net cash and cash equivalents used in financing activities | | | (6,341) | | | (35,767) | |
| | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | | | (1,747) | | | 2,389 | |
Increase (decrease) in cash and cash equivalents | | | (125) | | | 3,370 | |
Cash and cash equivalents—beginning | | | 44,769 | | | 55,675 | |
Cash and cash equivalents—ending | | $ | 44,644 | | $ | 59,045 | |
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 | | Three Months Ended | | Six Months Ended | |
| | December 31, | | December 31, | |
(amounts in thousands) | | 2016 | | 2015 | | 2016 | | 2015 | |
Consolidated net income | | $ | (1,530) | | $ | (8,004) | | $ | 11,339 | | $ | 5,080 | |
Depreciation and amortization | | | 28,702 | | | 32,727 | | | 58,143 | | | 66,038 | |
Interest expense | | | 12,903 | | | 16,016 | | | 27,545 | | | 34,745 | |
Income tax expense | | | (57) | | | (4,656) | | | 3,095 | | | 575 | |
EBITDA | | | 40,018 | | | 36,083 | | | 100,122 | | | 106,438 | |
| | | | | | | | | | | | | |
Adjustments related to operating income | | | | | | | | | | | | | |
Transaction related expenses | | | 538 | | | 2,064 | | | 822 | | | 2,414 | |
Stock based and deferred compensation expenses | | | 1,225 | | | 27,232 | | | 1,534 | | | 26,960 | |
Purchase accounting adjustments | | | 122 | | | 292 | | | 350 | | | 623 | |
Restructuring related costs | | | 3,785 | | | 750 | | | 6,653 | | | 3,576 | |
(Gain) loss on sale of fixed assets | | | (1,090) | | | 168 | | | (983) | | | 362 | |
Other adjustments to operating income | | | (656) | | | (951) | | | (1,563) | | | (1,406) | |
Adjustments related to operating income (A) | | | 3,924 | | | 29,555 | | | 6,813 | | | 32,529 | |
| | | | | | | | | | | | | |
Adjustments related to non-operating income | | | | | | | | | | | | | |
Foreign currency (gains) losses | | | (2,275) | | | 473 | | | (4,715) | | | 3,340 | |
Debt extinguishment charges | | | 16,569 | | | 3,867 | | | 16,569 | | | 3,867 | |
Other adjustments to non-operating income | | | (695) | | | (572) | | | (1,192) | | | 428 | |
Adjustments related to non-operating income | | | 13,599 | | | 3,768 | | | 10,662 | | | 7,635 | |
| | | | | | | | | | | | | |
Total adjustments (B) | | | 17,523 | | | 33,323 | | | 17,475 | | | 40,164 | |
| | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 57,541 | | $ | 69,406 | | $ | 117,597 | | $ | 146,602 | |
| | | | | | | | | | | | | |
Pre-acquisition Adjusted EBITDA | | | (405) | | | 326 | | | 1,800 | | | 722 | |
Proforma Adjusted EBITDA | | $ | 57,136 | | $ | 69,732 | | $ | 119,397 | | $ | 147,324 | |
| | | | | | | | | | | | | |
Non-GAAP Adjusted Operating Income | | Three Months Ended | | Six Months Ended | |
| | December 31, | | December 31, | |
(amounts in thousands) | | 2016 | | 2015 | | 2016 | | 2015 | |
Operating income | | $ | 24,915 | | $ | 7,123 | | $ | 52,641 | | $ | 47,802 | |
Adjustments related to operating income (A) | | | 3,924 | | | 29,555 | | | 6,813 | | | 32,529 | |
Adjusted operating income | | $ | 28,839 | | $ | 36,678 | | $ | 59,454 | | $ | 80,331 | |
| | | | | | | | | | | | | |
Non-GAAP Adjusted Net Income | | Three Months Ended | | Six Months Ended | |
| | December 31, | | December 31, | |
(amounts in thousands, except per share data) | | 2016 | | 2015 | | 2016 | | 2015 | |
Consolidated net income | | $ | (1,530) | | $ | (8,004) | | $ | 11,339 | | $ | 5,080 | |
Adjustments related to net income (B) | | | 17,523 | | | 33,323 | | | 17,475 | | | 40,164 | |
Tax impact of adjusting entries | | | (4,808) | | | (6,515) | | | (4,953) | | | (8,258) | |
Adjusted net income | | | 11,185 | | | 18,804 | | | 23,861 | | | 36,986 | |
| | | | | | | | | | | | | |
Net loss attributable to noncontrolling interest | | | 405 | | | 87 | | | 785 | | | 10 | |
Adjusted net income attributable to shareholders of
Multi Packaging Solutions International Limited | | $ | 11,590 | | $ | 18,891 | | $ | 24,646 | | $ | 36,996 | |
| | | | | | | | | | | | | |
Weighted average number of
common shares outstanding – diluted | | | 77,604 | | | 73,826 | | | 77,528 | | | 67,817 | |
| | | | | | | | | | | | | |
Adjusted net income per share | | $ | 0.15 | | $ | 0.26 | | $ | 0.32 | | $ | 0.55 | |
Multi Packaging Solutions International Limited And Subsidiaries
Net Sales by Segment and Market
| | | | | | | |
| | Three Months Ended | |
| | December 31, | |
(amounts in thousands) | | 2016 | | 2015 | |
North America | | | | | | | |
Consumer | | $ | 81,340 | | $ | 88,297 | |
Healthcare | | | 65,490 | | | 67,259 | |
Multi-Media | | | 34,579 | | | 45,889 | |
| | $ | 181,409 | | $ | 201,445 | |
| | | | | | | |
Europe | | | | | | | |
Consumer | | $ | 102,289 | | $ | 116,545 | |
Healthcare | | | 73,594 | | | 77,761 | |
Multi-Media | | | 5,224 | | | 6,665 | |
| | $ | 181,107 | | $ | 200,971 | |
| | | | | | | |
Asia | | | | | | | |
Consumer | | $ | 18,160 | | $ | 21,907 | |
Healthcare | | | 5,450 | | | 5,034 | |
| | $ | 23,610 | | $ | 26,941 | |
| | | | | | | |
Total | | $ | 386,126 | | $ | 429,357 | |
| | | | | | | |
| | Six Months Ended | |
| | December 31, | |
(amounts in thousands) | | 2016 | | 2015 | |
North America | | | | | | | |
Consumer | | $ | 161,587 | | $ | 167,587 | |
Healthcare | | | 135,912 | | | 142,912 | |
Multi-Media | | | 73,210 | | | 106,478 | |
| | $ | 370,709 | | $ | 416,977 | |
| | | | | | | |
Europe | | | | | | | |
Consumer | | $ | 211,284 | | $ | 253,700 | |
Healthcare | | | 151,028 | | | 154,653 | |
Multi-Media | | | 14,468 | | | 14,031 | |
| | $ | 376,780 | | $ | 422,384 | |
| | | | | | | |
Asia | | | | | | | |
Consumer | | $ | 35,091 | | $ | 38,799 | |
Healthcare | | | 11,371 | | | 10,248 | |
| | $ | 46,462 | | $ | 49,047 | |
| | | | | | | |
Total | | $ | 793,951 | | $ | 888,408 | |
Multi Packaging Solutions International Limited And Subsidiaries
Free Cash Flow and Adjusted Free Cash Flow Reconciliation
The Company defines Free Cash Flow as cash provided by operating activities (a GAAP measure) less capital expenditures, plus proceeds from sale of assets. The Company views Free Cash Flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments and repayment of outstanding borrowings. For the three and trailing twelve months ended December 31, 2016 and 2015, Free Cash Flow was calculated as follows:
| | | | | | | | | | | | | | |
| | Three Months
Ended December 31, | | | Trailing 12 Months
Ended December 31, | |
(amounts in thousands) | | 2016 | | 2015 | | | 2016 | | 2015 | |
| | | | | | | | | | | | | | |
Net cash and cash equivalents provided by operating activities | | $ | 45,800 | | $ | 29,797 | | | $ | 130,720 | | $ | 130,390 | |
Additions to property, plant and equipment | | | (19,402) | | | (12,186) | | | | (60,494) | | | (59,836) | |
Proceeds from sale of assets | | | 1,448 | | | 678 | | | | 4,716 | | | 7,309 | |
Free Cash Flow | | $ | 27,846 | | $ | 18,289 | | | $ | 74,942 | | $ | 77,863 | |
As supplemental information, the Company also provides Adjusted Free Cash Flow, which is defined as Adjusted EBITDA less capital expenditures, plus proceeds from sale of assets, less cash interest paid, cash tax paid, core working capital changes (accounts reveivable, accounts payable, inventory) and payments made related to the funding of the UK Field pension plan. The Company views Adjusted Free Cash Flow as an important measure because it is one factor in evaluating the amount of cash generated by the core business operations.
| | | | | | | | | | | | | | |
| | Three Months
Ended December 31, | | | Trailing 12 Months
Ended December 31, | |
(amounts in thousands) | | 2016 | | 2015 | | | 2016 | | 2015 | |
| | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 57,541 | | $ | 69,406 | | | $ | 225,298 | | $ | 257,934 | |
Less: Capital Expenditures | | | (19,402) | | | (12,186) | | | | (60,494) | | | (59,836) | |
Plus: Proceeds from sale of assets | | | 1,448 | | | 678 | | | | 4,716 | | | 7,309 | |
Less: Cash Interest | | | (11,806) | | | (15,431) | | | | (53,466) | | | (67,671) | |
Less: Cash Taxes | | | (1,242) | | | (5,141) | | | | (7,806) | | | (11,205) | |
Less: Change in Core Working Capital (1) | | | 19,195 | | | (1,535) | | | | 10,324 | | | 8,697 | |
Less: Pension Payments (2) | | | — | | | (2,273) | | | | (5,597) | | | (9,130) | |
Adjusted Free Cash Flow | | $ | 45,734 | | $ | 33,518 | | | $ | 112,975 | | $ | 126,098 | |
| (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 |
