Exhibit 99.1
|
| |
| Libbey Inc.
300 Madison Ave
P.O. Box 10060
Toledo, OH 43699 |
NEWS RELEASE
AT THE COMPANY:
Kenneth Boerger
Vice President and Treasurer
(419) 325-2279
ken.boerger@libbey.com
FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 25, 2012
LIBBEY INC. ANNOUNCES THIRD QUARTER 2012 FINANCIAL RESULTS
Quarter Included Sales of $209.2 Million; Income from Operations of $24.3 Million and
Adjusted EBITDA of $38.0 Million are Both All-Time Records for Any Third Quarter
TOLEDO, OHIO, OCTOBER 25, 2012--Libbey Inc. (NYSE MKT: LBY) today reported results for the third quarter-ended September 30, 2012.
Third Quarter Highlights
| |
| • | Sales for the third quarter were $209.2 million, compared to $207.2 million for the third quarter of 2011, an increase of 0.9 percent (or 3.9 percent excluding currency fluctuation). |
| |
| • | Sales in the Glass Operations segment were $189.9 million, compared to $190.8 million in the third quarter of 2011, a decrease of 0.5 percent (an increase of 2.7 percent excluding currency fluctuation). Sales performance was led by a 13.0 percent increase in sales within our China sales region (11.4 percent excluding currency impact) and a 9.0 percent increase within our Mexico sales region (14.8 percent excluding currency impact). |
| |
| • | Income from operations grew 32.4 percent, compared to the third quarter of 2011, increasing to an all-time third quarter record of $24.3 million from $18.4 million in the year-ago quarter. |
| |
| • | Adjusted EBITDA increased 6.2 percent to a record for any third quarter of $38.0 million, compared to $35.8 million for the third quarter of 2011. |
“We are pleased with this quarter's results, driven in large part by the increased focus on driving down costs and defending and growing our key markets, the core of our recently announced strategic plan. These cost improvements, coupled with notable sales growth in China and Mexico, led to exceptionally strong Adjusted EBITDA, resulting in record third quarter results," said Stephanie A. Streeter, chief executive officer of Libbey Inc.
“We are committed to further improving our cost structure, leveraging our advantaged businesses and strengthening our balance sheet. We believe these efforts, combined with our overall productivity improvements, will enable strengthened financial and operational performance.”
Third Quarter Regional Sales and Operational Review
| |
| • | Glass Operations segment sales were led by a 13.0 percent increase in sales within our China sales region (11.4 percent excluding currency impact) and a 9.0 percent increase in sales within our Mexico sales region (14.8 percent excluding currency impact). Sales within our U.S. and Canada sales region were higher by approximately 1.0 percent compared to the prior year quarter. The European sales region saw a 9.7 percent decrease in sales (a 1.7 percent increase excluding currency fluctuation). |
| |
| • | Sales to U.S. and Canadian foodservice glassware customers increased by 1.3 percent. Glassware sales to U.S. and Canadian retail customers increased 1.2 percent during the third quarter of 2012, while sales to business-to-business customers in the U.S. and Canada decreased 1.2 percent. |
| |
| • | Sales in the Other Operations segment increased 17.1 percent to $19.4 million, compared to $16.6 million in the prior-year quarter. This increase was driven by solid sales increases to both Syracuse China and World Tableware customers during the quarter. |
| |
| • | Interest expense decreased by $1.8 million to $8.7 million, compared to $10.6 million in the year-ago period, primarily driven by lower interest rates. |
| |
| • | Our effective tax rate was 3.5 percent for the quarter-ended September 30, 2012, compared to 29.1 percent for the quarter-ended September 30, 2011. The effective tax rate was influenced by jurisdictions with recorded valuation allowances and changes in the mix of earnings with differing statutory rates. |
Nine-Month Highlights
| |
| • | Sales for the first nine months of 2012 were $606.2 million, compared to $602.3 million for the first nine months of 2011, an increase of 0.7 percent (or 3.4 percent excluding currency fluctuation). |
| |
| • | Sales in the Glass Operations segment were $551.7 million, compared to $547.4 million in the first nine months of 2011, an increase of 0.8 percent (or 3.9 percent excluding currency fluctuation). Contributing to the increase was a 34.6 percent increase in sales within our China sales region (31.0 percent excluding currency impact). |
| |
| • | Income from operations grew 26.8 percent, compared to the first nine months of 2011, increasing to $68.2 million from $53.8 million in the year-ago nine-month period. |
| |
| • | Adjusted EBITDA increased 11.7 percent to an all-time high for the first nine months of the year of $102.5 million, compared to $91.8 million for the first nine months of 2011. |
Nine-Month Regional Sales and Operational Review
| |
| • | Primary contributors to increased Glass Operations sales were a 34.6 percent increase in sales within our China sales region (31.0 percent excluding currency impact) and a 3.7 percent increase in sales within our U.S. and Canada sales region. We reported flat sales within our Mexico sales region; however, excluding currency impact, net sales were 7.5 percent higher than in the prior-year period. We saw a 10.0 percent decrease in sales within our European sales region (only a 1.1 percent decrease excluding currency fluctuation). |
| |
| • | Sales to U.S. and Canadian foodservice glassware customers increased by 5.4 percent. Glassware sales to U.S. and Canadian business-to-business customers increased 2.9 percent during the first nine months of 2012, while sales to retail customers in the U.S. and Canada were 2.5 percent higher. |
| |
| • | Sales in the Other Operations segment were $55.1 million, compared to $55.4 million in the prior-year period. As a result of the sale of substantially all of the assets of Traex in late April 2011, the first nine months of 2011 included net sales of $4.8 million of Traex® products which were no longer offered for sale by the Company in 2012. Partially offsetting the absence of Traex® product sales were increased sales to World Tableware customers of 8.2 percent and a 10.5 percent increase in sales to Syracuse China customers. |
| |
| • | Interest expense decreased by $3.8 million to $29.1 million, compared to $32.9 million in the year-ago period, the result of a mix of lower debt and interest rates in various months throughout the first nine months of the year. |
| |
| • | Our effective tax rate was 30.4 percent for the nine-month period ended September 30, 2012, compared to 18.3 percent for the first nine months of 2011. The effective tax rate was influenced by jurisdictions with recorded valuation allowances, intra-period tax allocations and changes in the mix of earnings with differing statutory rates. |
Working Capital and Liquidity
| |
| • | As of September 30, 2012, working capital, defined as inventories and accounts receivable less accounts payable, was $218.1 million, compared to $212.3 million at September 30, 2011. This slight increase in working capital resulted from lower accounts payable. |
| |
| • | Libbey reported that it had available capacity of $87.8 million under its ABL credit facility as of September 30, 2012, with no loans currently outstanding. The Company also had cash on hand of $33.3 million at September 30, 2012. |
Webcast Information
Libbey will hold a conference call for investors on Thursday, October 25, 2012, at 11 a.m. Eastern Daylight Time. The conference call will be simulcast live on the Internet and is accessible from the Investor Relations' section of www.libbey.com. To listen to the call, please go to the website at least 10 minutes early to register, download and install any necessary software. A replay will be available for 7 days after the conclusion of the call.
About Libbey Inc.
Based in Toledo, Ohio, since 1888, Libbey Inc. is the largest manufacturer of glass tableware in the western hemisphere and one of the largest glass tableware manufacturers in the world. It supplies products to foodservice, retail, industrial and business-to-business customers in over 100 countries, and it is the leading manufacturer of tabletop products for the U.S. foodservice industry.
Libbey operates glass tableware manufacturing plants in the United States in Louisiana and Ohio as well as in Mexico, China, Portugal and the Netherlands. Its Crisa subsidiary, located in Monterrey, Mexico, is a leading producer of glass tableware in Mexico and Latin America. Its subsidiary located in Leerdam, Netherlands, is among the world leaders in producing and selling glass stemware to retail, foodservice and industrial clients. Its Crisal subsidiary, located in Portugal, provides an expanded presence in Europe. Its Syracuse China subsidiary designs and distributes an extensive line of high-quality ceramic dinnerware, principally for foodservice establishments in the United States. Its World Tableware subsidiary imports and sells a full-line of metal flatware and hollowware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States. In 2011, Libbey Inc.'s net sales totaled $817.1 million.
This press release includes forward-looking statements as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements only reflect the Company's best assessment at this time and are indicated by words or phrases such as “goal,” “expects,” “ believes,” “will,” “estimates,” “anticipates,” or similar phrases. Investors are cautioned that forward-looking statements involve risks and uncertainty and that actual results may differ materially from these statements, and that investors should not place undue reliance on such statements. These forward-looking statements may be affected by the risks and uncertainties in the Company's business. This information is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's report on Form 8-K filed with the Commission on May 9, 2012. Important factors potentially affecting performance include but are not limited to increased competition from foreign suppliers endeavoring to sell glass tableware in the United States and Mexico; the impact of lower duties for imported products; global economic conditions and the related impact on consumer spending levels; major slowdowns in the retail, travel or entertainment industries in the United States, Canada, Mexico, Western Europe and Asia, caused by terrorist attacks or otherwise; significant increases in per-unit costs for natural gas, electricity, freight, corrugated packaging, and other purchased materials; high levels of indebtedness; high interest rates that increase the Company's borrowing costs or volatility in the financial markets that could constrain liquidity and credit availability; protracted work stoppages related to collective bargaining agreements; increases in expense associated with higher medical costs, increased pension expense associated with lower returns on pension investments and increased pension obligations; devaluations and other major currency fluctuations relative to the U.S. dollar and the Euro that could reduce the cost competitiveness of the Company's products compared to foreign competition; the effect of exchange rate changes to the value of the Mexican peso and the earnings and cash flow of Crisa, expressed under U.S. GAAP; the inability to achieve savings and profit improvements at targeted levels in the Company's operations or within the intended time periods; and whether the Company completes any significant acquisition and whether such acquisitions can operate profitably. Any forward-looking statements speak only as of the date of this press release, and the Company assumes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date of this press release.
Libbey Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)
|
| | | | | | | |
| | Three months ended September 30, |
| | 2012 | | 2011 |
| Net sales | $ | 209,150 |
| | $ | 207,246 |
|
| Freight billed to customers | 1,015 |
| | 511 |
|
| Total revenues | 210,165 |
| | 207,757 |
|
Cost of sales (1) | 158,956 |
| | 162,873 |
|
| Gross profit | 51,209 |
| | 44,884 |
|
Selling, general and administrative expenses (1) | 26,887 |
| | 26,739 |
|
Special charges (1) | — |
| | (232 | ) |
| Income from operations | 24,322 |
| | 18,377 |
|
Other (expense) income (1) | (195 | ) | | 2,237 |
|
| Earnings before interest and income taxes | 24,127 |
| | 20,614 |
|
| Interest expense | 8,720 |
| | 10,559 |
|
| Income before income taxes | 15,407 |
| | 10,055 |
|
Provision for income taxes (1) | 546 |
| | 2,928 |
|
| Net income | $ | 14,861 |
| | $ | 7,127 |
|
| | | | |
| Net income per share: | | | |
| Basic | $ | 0.71 |
| | $ | 0.35 |
|
| Diluted | $ | 0.70 |
| | $ | 0.34 |
|
| | | | |
| Weighted average shares: | | | |
| Outstanding | 20,896 |
| | 20,182 |
|
| Diluted | 21,360 |
| | 20,715 |
|
(1) Refer to Table 1 for Special Items detail.
Libbey Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)
|
| | | | | | | |
| | Nine months ended September 30, |
| | 2012 | | 2011 |
| Net sales | $ | 606,226 |
| | $ | 602,274 |
|
| Freight billed to customers | 2,482 |
| | 1,760 |
|
| Total revenues | 608,708 |
| | 604,034 |
|
Cost of sales (1) | 458,096 |
| | 473,168 |
|
| Gross profit | 150,612 |
| | 130,866 |
|
Selling, general and administrative expenses (1) | 82,391 |
| | 77,365 |
|
Special charges (1) | — |
| | (281 | ) |
| Income from operations | 68,221 |
| | 53,782 |
|
Loss on redemption of debt (1) | (31,075 | ) | | (2,803 | ) |
Other (expense) income (1) | (359 | ) | | 8,307 |
|
| Earnings before interest and income taxes | 36,787 |
| | 59,286 |
|
| Interest expense | 29,085 |
| | 32,929 |
|
| Income before income taxes | 7,702 |
| | 26,357 |
|
Provision for income taxes (1) | 2,343 |
| | 4,825 |
|
| Net income | $ | 5,359 |
| | $ | 21,532 |
|
| | | | |
| Net income per share: | | | |
| Basic | $ | 0.26 |
| | $ | 1.07 |
|
| Diluted | $ | 0.25 |
| | $ | 1.04 |
|
| | | | |
| Weighted average shares: | | | |
| Outstanding | 20,835 |
| | 20,079 |
|
| Diluted | 21,267 |
| | 20,726 |
|
(1) Refer to Table 2 for Special Items detail.
Libbey Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
|
| | | | | | | |
| | September 30, 2012 | | December 31, 2011 |
| | (unaudited) | | |
| ASSETS: | | | |
| Cash and cash equivalents | $ | 33,347 |
| | $ | 58,291 |
|
| Accounts receivable — net | 93,962 |
| | 88,045 |
|
| Inventories — net | 170,814 |
| | 145,859 |
|
| Other current assets | 8,202 |
| | 9,701 |
|
| Total current assets | 306,325 |
| | 301,896 |
|
| | | | |
| Pension asset | 25,842 |
| | 17,485 |
|
| Goodwill and purchased intangibles — net | 186,944 |
| | 187,772 |
|
| Property, plant and equipment — net | 251,518 |
| | 264,718 |
|
| Other assets | 19,597 |
| | 18,280 |
|
| Total assets | $ | 790,226 |
| | $ | 790,151 |
|
| | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | | | |
| Notes payable | $ | — |
| | $ | 339 |
|
| Accounts payable | 46,650 |
| | 58,759 |
|
| Accrued liabilities | 97,788 |
| | 88,761 |
|
| Pension liability (current portion) | 2,037 |
| | 5,990 |
|
| Non-pension postretirement benefits (current portion) | 4,721 |
| | 4,721 |
|
| Other current liabilities | 4,428 |
| | 6,730 |
|
| Long-term debt due within one year | 3,819 |
| | 3,853 |
|
| Total current liabilities | 159,443 |
| | 169,153 |
|
| | | | |
| Long-term debt | 466,858 |
| | 393,168 |
|
| Pension liability | 37,707 |
| | 122,145 |
|
| Non-pension postretirement benefits | 70,130 |
| | 68,496 |
|
| Other liabilities | 9,942 |
| | 9,409 |
|
| Total liabilities | 744,080 |
| | 762,371 |
|
| | | | |
| Common stock and capital in excess of par value | 311,791 |
| | 311,188 |
|
| Retained deficit | (149,677 | ) | | (155,036 | ) |
| Accumulated other comprehensive loss | (115,968 | ) | | (128,372 | ) |
| Total shareholders’ equity | 46,146 |
| | 27,780 |
|
| Total liabilities and shareholders’ equity | $ | 790,226 |
| | $ | 790,151 |
|
Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
|
| | | | | | | |
| | Three months ended September 30, |
| | 2012 | | 2011 |
| Operating activities: | | | |
| Net income | $ | 14,861 |
| | $ | 7,127 |
|
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | |
| Depreciation and amortization | 10,073 |
| | 10,357 |
|
| Loss on asset sales and disposals | 127 |
| | 347 |
|
| Change in accounts receivable | (6,023 | ) | | 2,989 |
|
| Change in inventories | (3,006 | ) | | (5,084 | ) |
| Change in accounts payable | (7,499 | ) | | (7,855 | ) |
| Accrued interest and amortization of discounts, warrants and finance fees | 8,186 |
| | (7,135 | ) |
| Pension & non-pension postretirement benefits | 1,241 |
| | (11,530 | ) |
| Restructuring charges | — |
| | (262 | ) |
| Accrued liabilities & prepaid expenses | 9,770 |
| | 3,673 |
|
| Income taxes | (921 | ) | | 2,578 |
|
| Share-based compensation expense | 601 |
| | 2,398 |
|
| Other operating activities | 479 |
| | (2,293 | ) |
| Net cash provided by (used in) operating activities | 27,889 |
| | (4,690 | ) |
| | | | |
| Investing activities: | | | |
| Additions to property, plant and equipment | (5,412 | ) | | (8,059 | ) |
| Net proceeds from sale of Traex | — |
| | 158 |
|
| Proceeds from asset sales and other | 131 |
| | 65 |
|
| Net cash used in investing activities | (5,281 | ) | | (7,836 | ) |
| | | | |
| Financing activities: | | | |
| Net (repayments) on ABL credit facility | — |
| | (2,105 | ) |
| Other repayments | (9,551 | ) | | (4,673 | ) |
| Other borrowings | 1,234 |
| | — |
|
| Stock options exercised | 253 |
| | — |
|
| Debt issuance costs and other | (880 | ) | | (19 | ) |
| Net cash used in financing activities | (8,944 | ) | | (6,797 | ) |
| | | | |
| Effect of exchange rate fluctuations on cash | 106 |
| | (403 | ) |
| Increase (decrease) in cash | 13,770 |
| | (19,726 | ) |
| | | | |
| Cash at beginning of period | 19,577 |
| | 44,309 |
|
| Cash at end of period | $ | 33,347 |
| | $ | 24,583 |
|
Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
|
| | | | | | | |
| | Nine months ended September 30, |
| | 2012 | | 2011 |
| Operating activities: | | | |
| Net income | $ | 5,359 |
| | $ | 21,532 |
|
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | |
| Depreciation and amortization | 30,897 |
| | 32,265 |
|
| Loss (gain) on asset sales and disposals | 294 |
| | (6,449 | ) |
| Change in accounts receivable | (6,497 | ) | | (1,813 | ) |
| Change in inventories | (25,097 | ) | | (24,156 | ) |
| Change in accounts payable | (12,087 | ) | | (7,183 | ) |
| Accrued interest and amortization of discounts, warrants and finance fees | 532 |
| | (6,309 | ) |
| Call premium on 10% senior notes | 23,602 |
| | 1,203 |
|
| Write-off of finance fee & discounts on senior notes and ABL | 10,975 |
| | 1,600 |
|
| Pension & non-pension postretirement benefits | (81,338 | ) | | (8,586 | ) |
| Restructuring charges | — |
| | (828 | ) |
| Accrued liabilities & prepaid expenses | 7,742 |
| | 4,882 |
|
| Income taxes | (1,041 | ) | | (7,168 | ) |
| Share-based compensation expense | 2,466 |
| | 4,365 |
|
| Other operating activities | 563 |
| | (1,211 | ) |
| Net cash (used in) provided by operating activities | (43,630 | ) | | 2,144 |
|
| | | | |
| Investing activities: | | | |
| Additions to property, plant and equipment | (17,244 | ) | | (26,457 | ) |
| Net proceeds from sale of Traex | — |
| | 13,000 |
|
| Proceeds from asset sales and other | 550 |
| | 5,264 |
|
| Net cash used in investing activities | (16,694 | ) | | (8,193 | ) |
| | | | |
| Financing activities: | |
| | |
|
| Other repayments | (19,513 | ) | | (4,770 | ) |
| Other borrowings | 1,234 |
| | — |
|
| Proceeds from 6.875% senior notes | 450,000 |
| | — |
|
| Payments on 10% senior notes | (360,000 | ) | | (40,000 | ) |
| Call premium on 10% senior notes | (23,602 | ) | | (1,203 | ) |
| Stock options exercised | 293 |
| | 478 |
|
| Debt issuance costs and other | (13,034 | ) | | (462 | ) |
| Net cash provided by (used in) financing activities | 35,378 |
| | (45,957 | ) |
| | | | |
| Effect of exchange rate fluctuations on cash | 2 |
| | 331 |
|
| Decrease in cash | (24,944 | ) | | (51,675 | ) |
| | | | |
| Cash at beginning of period | 58,291 |
| | 76,258 |
|
| Cash at end of period | $ | 33,347 |
| | $ | 24,583 |
|
In accordance with the SEC’s Regulation G, tables 1, 2, 3, 4 and 5 provide non-GAAP measures used in this earnings release and a reconciliation to the most closely related Generally Accepted Accounting Principle (GAAP) measure. Libbey believes that providing supplemental non-GAAP financial information is useful to investors in understanding Libbey's core business and trends. In addition, it is the basis on which Libbey's management assesses performance. Although Libbey believes that the non-GAAP financial measures presented enhance investors' understanding of Libbey's business and performance, these non-GAAP measures should not be considered an alternative to GAAP.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Table 1 | | | | | | | | | | | | |
| Reconciliation of "As Reported" Results to "As Adjusted" Results - Quarter | | |
| (dollars in thousands, except per-share amounts) | | | | | | |
| (unaudited) | | | | | | | | | | | | |
| | | Three months ended September 30, |
| | | 2012 | | 2011 |
| | | As Reported | | Special Items | | As Adjusted | | As Reported | | Special Items | | As Adjusted |
| Net sales | | $ | 209,150 |
| | $ | — |
| | $ | 209,150 |
| | $ | 207,246 |
| | $ | — |
| | $ | 207,246 |
|
| Freight billed to customers | | 1,015 |
| | — |
| | 1,015 |
| | 511 |
| | — |
| | 511 |
|
| Total revenues | | 210,165 |
| | — |
| | 210,165 |
| | 207,757 |
| | — |
| | 207,757 |
|
| Cost of sales | | 158,956 |
| | 2,342 |
| | 156,614 |
| | 162,873 |
| | 1,981 |
| | 160,892 |
|
| Gross profit | | 51,209 |
| | (2,342 | ) | | 53,551 |
| | 44,884 |
| | (1,981 | ) | | 46,865 |
|
| Selling, general and administrative expenses | | 26,887 |
| | 1,444 |
| | 25,443 |
| | 26,739 |
| | 2,983 |
| | 23,756 |
|
| Special charges | | — |
| | — |
| | — |
| | (232 | ) | | (232 | ) | | — |
|
| Income from operations | | 24,322 |
| | (3,786 | ) | | 28,108 |
| | 18,377 |
| | (4,732 | ) | | 23,109 |
|
| Other (expense) income | | (195 | ) | | — |
| | (195 | ) | | 2,237 |
| | (81 | ) | | 2,318 |
|
| Earnings before interest and income taxes | | 24,127 |
| | (3,786 | ) | | 27,913 |
| | 20,614 |
| | (4,813 | ) | | 25,427 |
|
| Interest expense | | 8,720 |
| | — |
| | 8,720 |
| | 10,559 |
| | — |
| | 10,559 |
|
| Income before income taxes | | 15,407 |
| | (3,786 | ) | | 19,193 |
| | 10,055 |
| | (4,813 | ) | | 14,868 |
|
| Provision for income taxes | | 546 |
| | (26 | ) | | 572 |
| | 2,928 |
| | — |
| | 2,928 |
|
| Net income | | $ | 14,861 |
| | $ | (3,760 | ) | | $ | 18,621 |
| | $ | 7,127 |
| | $ | (4,813 | ) | | $ | 11,940 |
|
| | | | | | | | | | | | | |
| Net income per share: | | | | | | | | | | | | |
| Basic | | $ | 0.71 |
| | $ | (0.18 | ) | | $ | 0.89 |
| | $ | 0.35 |
| | $ | (0.24 | ) | | $ | 0.59 |
|
| Diluted | | $ | 0.70 |
| | $ | (0.18 | ) | | $ | 0.87 |
| | $ | 0.34 |
| | $ | (0.23 | ) | | $ | 0.58 |
|
| | | | | | | | | | | | | |
| Weighted average shares: | | | | | | | | | | | | |
| Outstanding | | 20,896 |
| | | | | | 20,182 |
| | | | |
| Diluted | | 21,360 |
| | | | | | 20,715 |
| | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended September 30, 2012 | | Three months ended September 30, 2011 |
Special Items Detail - (Income) Expense: | | Severance and Other (1) | | Total Special Items | | Abandoned Property (2) | | Sale of Traex (3) | | Restructuring Charges (4) | | CEO Transition Expenses | | Total Special Items |
| Cost of sales | | $ | 2,342 |
| | $ | 2,342 |
| | $ | 1,827 |
| | $ | — |
| | $ | 154 |
| | $ | — |
| | $ | 1,981 |
|
| SG&A | | 1,444 |
| | 1,444 |
| | 892 |
| | — |
| | — |
| | 2,091 |
| | 2,983 |
|
| Special charges | | — |
| | — |
| | — |
| | — |
| | (232 | ) | | — |
| | (232 | ) |
| Other (income) expense | | — |
| | — |
| | — |
| | 81 |
| | — |
| | — |
| | 81 |
|
| Income taxes | | (26 | ) | | (26 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total Special Items | | $ | 3,760 |
| | $ | 3,760 |
| | $ | 2,719 |
| | $ | 81 |
| | $ | (78 | ) | | $ | 2,091 |
| | $ | 4,813 |
|
(1) Severance and other relates to implementation of our new strategic plan.
(2) Estimate accrued for an ongoing unclaimed property audit.
(3) Expenses are related to the sale of substantially all of the assets of Traex.
(4) Restructuring charges are related to the closure of the decorating operations at our Shreveport, Louisiana, manufacturing facility.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Table 2 | | | | | | | | | | | | |
| Reconciliation of "As Reported" Results to "As Adjusted" Results - Nine Months | | |
| (dollars in thousands, except per-share amounts) | | | | | | |
| (unaudited) | | Nine months ended September 30, |
| | | 2012 | | 2011 |
| | | As Reported | | Special Items | | As Adjusted | | As Reported | | Special Items | | As Adjusted |
| Net sales | | $ | 606,226 |
| | $ | — |
| | $ | 606,226 |
| | $ | 602,274 |
| | $ | — |
| | $ | 602,274 |
|
| Freight billed to customers | | 2,482 |
| | — |
| | 2,482 |
| | 1,760 |
| | — |
| | 1,760 |
|
| Total revenues | | 608,708 |
| | — |
| | 608,708 |
| | 604,034 |
| | — |
| | 604,034 |
|
| Cost of sales | | 458,096 |
| | 2,342 |
| | 455,754 |
| | 473,168 |
| | 2,024 |
| | 471,144 |
|
| Gross profit | | 150,612 |
| | (2,342 | ) | | 152,954 |
| | 130,866 |
| | (2,024 | ) | | 132,890 |
|
| Selling, general and administrative expenses | | 82,391 |
| | 1,444 |
| | 80,947 |
| | 77,365 |
| | 2,598 |
| | 74,767 |
|
| Special charges | | — |
| | — |
| | — |
| | (281 | ) | | (281 | ) | | — |
|
| Income from operations | | 68,221 |
| | (3,786 | ) | | 72,007 |
| | 53,782 |
| | (4,341 | ) | | 58,123 |
|
| Loss on redemption of debt | | (31,075 | ) | | (31,075 | ) | | — |
| | (2,803 | ) | | (2,803 | ) | | — |
|
| Other (expense) income | | (359 | ) | | — |
| | (359 | ) | | 8,307 |
| | 6,901 |
| | 1,406 |
|
| Earnings before interest and income taxes | | 36,787 |
| | (34,861 | ) | | 71,648 |
| | 59,286 |
| | (243 | ) | | 59,529 |
|
| Interest expense | | 29,085 |
| | — |
| | 29,085 |
| | 32,929 |
| | — |
| | 32,929 |
|
| Income before income taxes | | 7,702 |
| | (34,861 | ) | | 42,563 |
| | 26,357 |
| | (243 | ) | | 26,600 |
|
| Provision for income taxes | | 2,343 |
| | (26 | ) | | 2,369 |
| | 4,825 |
| | — |
| | 4,825 |
|
| Net income | | $ | 5,359 |
| | $ | (34,835 | ) | | $ | 40,194 |
| | $ | 21,532 |
| | $ | (243 | ) | | $ | 21,775 |
|
| | | | | | | | | | | | | |
| Net income per share: | | | | | | | | | | | | |
| Basic | | $ | 0.26 |
| | $ | (1.67 | ) | | $ | 1.93 |
| | $ | 1.07 |
| | $ | (0.01 | ) | | $ | 1.08 |
|
| Diluted | | $ | 0.25 |
| | $ | (1.64 | ) | | $ | 1.89 |
| | $ | 1.04 |
| | $ | (0.01 | ) | | $ | 1.05 |
|
| | | | | | | | | | | | | |
| Weighted average shares: | | | | | | | | | | | | |
| Outstanding | | 20,835 |
| | | | | | 20,079 |
| | | | |
| Diluted | | 21,267 |
| | | | | | 20,726 |
| | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine months ended September 30, 2012 | | | | Nine months ended September 30, 2011 |
| Special Items Detail-(income) expense: | | Finance Fees (1) | | Severance and Other(2) | | Total Special Items | | Sale of Land (3) | | Sale of Traex (4) | | Finance Fees (1) | | Restructuring Charges (5) | | Abandoned Property (6) | | Other (7) | | Total Special Items |
| Cost of sales | | $ | — |
| | $ | 2,342 |
| | $ | 2,342 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 197 |
| | $ | 1,827 |
| | $ | — |
| | $ | 2,024 |
|
| SG&A | | — |
| | 1,444 |
| | 1,444 |
| | — |
| | — |
| | — |
| | — |
| | 892 |
| | 1,706 |
| | 2,598 |
|
| Special charges | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (281 | ) | | — |
| | — |
| | (281 | ) |
| Loss on redemption of debt | | 31,075 |
| | — |
| | 31,075 |
| | — |
| | — |
| | 2,803 |
| | — |
| | — |
| | — |
| | 2,803 |
|
| Other (income) expense | | — |
| | — |
| | — |
| | (3,445 | ) | | (3,240 | ) | | — |
| | — |
| | — |
| | (216 | ) | | (6,901 | ) |
| Income taxes | | — |
| | (26 | ) | | (26 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total Special Items | | $ | 31,075 |
| | $ | 3,760 |
| | $ | 34,835 |
| | $ | (3,445 | ) |
| $ | (3,240 | ) | | $ | 2,803 |
| | $ | (84 | ) | | $ | 2,719 |
| | $ | 1,490 |
| | $ | 243 |
|
(1) Finance fees for the nine months ended 2012 include the write-off of unamortized finance fees and discounts and call premium payments on the ABL Facility and $360.0 million senior notes redeemed in May and June 2012, partially offset by the write-off of the debt carrying value adjustment related to the termination of the $80.0 million interest rate swap. Finance fees for the nine months ended 2011 include the write-off of unamortized finance fees and discounts and call premium payments on the $40.0 million senior notes redeemed in March 2011.
(2) Severance and other relates to implementation of our new strategic plan.
(3) Net gain on the sale of land at our Libbey Holland facility.
(4) Gain on the sale of substantially all of the assets of Traex.
(5) Restructuring charges are related to the closure of our Syracuse, New York, manufacturing facility and the decorating operations at our Shreveport, Louisiana, manufacturing facility.
(6) Estimate accrued for an ongoing unclaimed property audit.
(7) SG&A includes CEO transition expenses of $2,511, net of an equipment credit of $805.
|
| | | | | | | | | | | | | | | | |
| Table 3 | | | | | | | | |
| Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA |
| (dollars in thousands) | | | | | | | | |
| | | | | | | | | |
| | | Three months ended September 30, | | Nine months ended September 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| Reported net income | | $ | 14,861 |
| | $ | 7,127 |
| | $ | 5,359 |
| | $ | 21,532 |
|
| Add: | | | | | | | | |
| Interest expense | | 8,720 |
| | 10,559 |
| | 29,085 |
| | 32,929 |
|
| Provision for income taxes | | 546 |
| | 2,928 |
| | 2,343 |
| | 4,825 |
|
| Depreciation and amortization | | 10,073 |
| | 10,357 |
| | 30,897 |
| | 32,265 |
|
| EBITDA | | 34,200 |
| | 30,971 |
| | 67,684 |
| | 91,551 |
|
| Add: Special items before interest and taxes | | 3,786 |
| | 4,813 |
| | 34,861 |
| | 243 |
|
| Adjusted EBITDA | | $ | 37,986 |
| | $ | 35,784 |
| | $ | 102,545 |
| �� | $ | 91,794 |
|
|
| | | | | | | | | | | | | | | | |
| Table 4 | | | | | | | | |
| Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow |
| (dollars in thousands) | | | | | | | | |
| | | Three months ended September 30, | | Nine months ended September 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | | |
| Net cash provided by (used in) operating activities | | $ | 27,889 |
| | $ | (4,690 | ) | | $ | (43,630 | ) | | $ | 2,144 |
|
| Capital expenditures | | (5,412 | ) | | (8,059 | ) | | (17,244 | ) | | (26,457 | ) |
| Net proceeds from sale of Traex | | — |
| | 158 |
| | — |
| | 13,000 |
|
| Proceeds from asset sales and other | | 131 |
| | 65 |
| | 550 |
| | 5,264 |
|
| Free Cash Flow | | $ | 22,608 |
| | $ | (12,526 | ) | | $ | (60,324 | ) | | $ | (6,049 | ) |
|
| | | | | | | | | | | | | | | | |
| Table 5 | | | | | | | | |
| Summary Business Segment Information | | | | | | | | |
| (dollars in thousands) | | | | | | | | |
| | | Three months ended September 30, | | Nine months ended September 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| Net Sales: | | | | | | | | |
Glass Operations (1) | | $ | 189,860 |
| | $ | 190,813 |
| | $ | 551,679 |
| | $ | 547,353 |
|
Other Operations (2) | | 19,427 |
| | 16,597 |
| | 55,123 |
| | 55,448 |
|
| Eliminations | | (137 | ) | | (164 | ) | | (576 | ) | | (527 | ) |
| Consolidated | | $ | 209,150 |
| | $ | 207,246 |
| | $ | 606,226 |
| | $ | 602,274 |
|
| | | | | | | | | |
Segment Earnings Before Interest & Taxes (Segment EBIT) (3) : | | | | | | | | |
Glass Operations (1) | | $ | 33,970 |
| | $ | 29,801 |
| | $ | 94,259 |
| | $ | 77,165 |
|
Other Operations (2) | | 4,356 |
| | 2,978 |
| | 11,097 |
| | 9,619 |
|
| Segment EBIT | | $ | 38,326 |
| | $ | 32,779 |
| | $ | 105,356 |
| | $ | 86,784 |
|
| | | | | | | | | |
| Reconciliation of Segment EBIT to Net Income: | | | | | | | | |
| Segment EBIT | | $ | 38,326 |
| | $ | 32,779 |
| | $ | 105,356 |
| | $ | 86,784 |
|
Retained corporate costs (4) | | (10,413 | ) | | (7,352 | ) | | (33,708 | ) | | (27,255 | ) |
| Consolidated Adjusted EBIT | | 27,913 |
| | 25,427 |
| | 71,648 |
| | 59,529 |
|
| Loss on redemption of debt | | — |
| | — |
| | (31,075 | ) | | (2,803 | ) |
| Severance and other | | (3,786 | ) | | — |
| | (3,786 | ) | | — |
|
| Gain (expense) on sale of Traex assets | | — |
| | (81 | ) | | — |
| | 3,240 |
|
| Gain on sale of land | | — |
| | — |
| | — |
| | 3,445 |
|
| Equipment credit | | — |
| | — |
| | — |
| | 1,021 |
|
| Restructuring charges | | — |
| | 78 |
| | — |
| | 84 |
|
| CEO transition expenses | | — |
| | (2,091 | ) | | — |
| | (2,511 | ) |
| Abandoned property | | — |
| | (2,719 | ) | | — |
| | (2,719 | ) |
| Special Items before interest and taxes | | (3,786 | ) | | (4,813 | ) | | (34,861 | ) | | (243 | ) |
| Interest expense | | (8,720 | ) | | (10,559 | ) | | (29,085 | ) | | (32,929 | ) |
| Income taxes | | (546 | ) | | (2,928 | ) | | (2,343 | ) | | (4,825 | ) |
| Net income | | $ | 14,861 |
| | $ | 7,127 |
| | $ | 5,359 |
| | $ | 21,532 |
|
| | | | | | | | | |
| Depreciation & Amortization: | | | | | | | | |
Glass Operations (1) | | $ | 9,735 |
| | $ | 9,999 |
| | $ | 29,761 |
| | $ | 30,779 |
|
Other Operations (2) | | 10 |
| | 11 |
| | 32 |
| | 257 |
|
| Corporate | | 328 |
| | 347 |
| | 1,104 |
| | 1,229 |
|
| Consolidated | | $ | 10,073 |
| | $ | 10,357 |
| | $ | 30,897 |
| | $ | 32,265 |
|
(1) Glass Operations—includes worldwide sales of manufactured and sourced glass tableware from domestic and international subsidiaries.
(2) Other Operations—includes worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware and serveware. Plastic items were sold through April 28, 2011.
(3) Segment EBIT represents earnings before interest and taxes and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs.
(4) Retained corporate costs includes certain headquarter, administrative and facility costs, and other costs that are not allocable to the reporting segments.
