BWAY Intermediate Company, Inc. Reports Financial Results For The Three Months Ended March 31, 2014 - WDRB 41 Louisville News

BWAY Intermediate Company, Inc. Reports Financial Results For The Three Months Ended March 31, 2014

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE BWAY Intermediate Company, Inc.

ATLANTA, May 14, 2014 /PRNewswire/ -- BWAY Intermediate Company, Inc. (the "Company"), a leading North American supplier of general line rigid containers, today reported net sales of $371.3 million and net income of $1.9 million for the three months ended March 31, 2014.  In the first quarter of 2014, the Company:

  • Increased net sales by $17.3 million to $371.3 million from $354.0 million
  • Improved net income to $1.9 million, an increase of $6.7 million, which compares to a loss of $4.8 million
  • Increased adjusted EBITDA 7.9% to $57.2 million from $53.0 million

First quarter 2014 results were favorably impacted by the results from the Ropak Acquisition which occurred on January 18, 2013 and implementation of related synergies, including lower operational costs as a result of plant consolidation actions taken in 2013.  In addition, the Company benefitted from the effective pass-through of higher raw material costs in the plastic packaging segment.  Partially offsetting these improvements were lower volumes in the metal packaging segment and the impact of higher transportation and utility costs resulting from the severe winter weather in 2014.    

Business Segments

Metal Packaging 

First quarter sales were $176.6 million compared to $183.1 million in 2013 primarily driven by lower volumes driven by the timing of market demand and an unfavorable sales mix.

Metal packaging segment earnings (excluding depreciation and amortization) for the 2014 first quarter were $35.0 million compared to $37.3 million for the same period in 2013.  The decrease was attributable to higher costs and lower volumes resulting from the severe winter weather in 2014. 

Plastic Packaging

Sales for the plastic packaging segment for first quarter were $194.7 million compared to $170.9 million last year. The increase is primarily due to the 17 incremental days that the Company owned Ropak in 2014 compared to the same period in 2013 as well as the effective pass-through of higher raw material costs. 

Plastic packaging segment earnings (excluding depreciation and amortization) for the 2014 first quarter were $22.4 million compared to $14.8 million in the same period last year.  The increase in segment earnings was primarily attributable to the Ropak Acquisition and synergies associated with closing four legacy plastic facilities, consolidating a substantial portion of their operations into Ropak facilities and other operational synergies including supply chain initiatives and elimination of certain general and administrative costs.  Improvements also resulted from actions taken by the Company to improve margins in this segment, including productivity improvement initiatives, changes in policies and practices with regard to passing through changes in resin prices. These improvements were partially offset by the severe winter weather impacts discussed above.  The three months ended March 31, 2013 included $0.8 million of non-cash charges resulting from Ropak purchase accounting inventory adjustments.

Corporate

Undistributed corporate expenses for the 2013 first quarter were $3.4 million compared to $4.7 million for the same period last year.  The decrease is primarily the result of reduced professional fee spending related to identifying and executing business performance improvement initiatives in 2013.

Debt

The Company's total net debt at March 31, 2014 was $923.5 million.  Interest expense increased $0.6 million during 2014 compared to same period in 2013 primarily due to the 2014 full-quarter impact of increased borrowings in 2013 used to finance the acquisition of Ropak.  The ratio of net debt to adjusted EBITDA (leverage), at March 31, 2014 was 3.9x. The Company had total liquidity, cash plus undrawn revolver capacity, of approximately $208.1 million as of March 31, 2014.

About BWAY Intermediate Company

The Company is a leading North American supplier of general line rigid containers. The Company currently operates 24 plants throughout the United States and Canada serving industry leading customers on a national basis.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these statements. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. As you read and consider this document, you should understand that these statements are not guarantees of performance or results. Many factors could affect our actual performance and results and could cause actual results to differ materially from those expressed in the forward-looking statements. Please refer to our filings with the United States Securities and Exchange Commission, for a discussion of other factors that may affect future performance or results.

In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this document might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

The Company provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP).  Presentation of non-GAAP financial measures such as, but not limited to "EBITDA," "adjusted EBITDA," "EBIT," "adjusted EBIT," gross margin (excluding depreciation and amortization) and "adjusted net income (loss)," provide investors with an alternative method for assessing the Company's operating results in a manner that enables them to more thoroughly evaluate the Company's performance. These non-GAAP financial measures provide a baseline for assessing the Company's future earnings expectations. The Company's management uses these non-GAAP financial measures for the same purpose. The non-GAAP financial measures included in this news release are provided to give investors access to the types of measures that the Company uses in analyzing its results.

The Company's calculation of non-GAAP financial measures is not necessarily comparable to similarly titled measures reported by other companies. These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Schedules that reconcile these non-GAAP financial measures to GAAP financial measures are included with this news release.

 

BWAY Intermediate Company, Inc. and Subsidiaries


Summary Consolidated Financial Data (Unaudited)


(Dollars in millions)










Three Months Ended


Statements of Operations


Mar. 31, 2014


Mar. 31, 2013


Net sales


$              371.3


$              354.0


Cost of products sold (excluding depr. and amort.)


310.9


297.5


Gross margin (excluding depr. and amort.)


60.4


56.5


Other costs and expenses






Depreciation and amortization


34.6


34.5


Selling and administrative


6.4


9.1


Restructuring


0.3


1.6


Interest


14.4


13.8


Business acquisition costs


0.2


4.7


Management fee


1.3


1.3


Other expense (income)


0.2


(0.2)


          Total other costs and expenses


57.4


64.8








Income (loss) before income taxes


3.0


(8.3)


Provision for (benefit from) income taxes


1.1


(3.5)


Net income (loss)


$                  1.9


$                (4.8)














Reconciliation of Net Income (Loss) to Adjusted EBITDA 






Net income (loss)


$                  1.9


$                (4.8)


Interest expense


14.4


13.8


Benefit from income taxes


1.1


(3.5)


Depreciation and amortization


34.6


34.5








    EBITDA


52.0


40.0








Adjustments:






Restructuring expense 


0.3


1.6


Business acquisition costs


0.2


4.7


Management fee


1.3


1.3


Operations improvement expenses


0.3


1.7


Plant realignment costs


-


0.4


Severe weather impact


2.7


-


Amortization of manufacturers profit in inventory


-


0.8


Foreign exchange gain/other


0.4


0.6


Ropak pre-acquisition results


-


1.9


    Adjusted EBITDA


$                57.2


$                53.0
















Three Months Ended


Business Segment Information


Mar. 31, 2014


Mar. 31, 2013


Net sales






     Metal packaging


$              176.6


$              183.1


     Plastic packaging


194.7


170.9


     Consolidated net sales


371.3


354.0








Income (loss) before income taxes






     Segment earnings (excluding depr. and amort.)






        Metal packaging


35.0


37.3


        Plastic packaging


22.4


14.8


        Total segment earnings (excluding depr. and amort.)


57.4


52.1








     Depreciation and amortization






        Metal packaging


21.3


22.8


        Plastic packaging


12.0


10.5


        Total segment depreciation and amortization


33.3


33.3


        Corporate


1.3


1.2


        Consolidated depreciation and amortization


34.6


34.5








     Corporate and other expenses






        Corporate undistributed expenses


3.4


4.7


        Restructuring


0.3


1.6


        Interest


14.4


13.8


        Business acquisition costs


0.2


4.7


        Management fee


1.3


1.3


        Other expense (income)


0.2


(0.2)


Consolidated income (loss) before income taxes


$                  3.0


$                (8.3)














Condensed Balance Sheets


Mar. 31, 2014


Dec. 31, 2013


Assets






     Cash and cash equivalents


$                19.4


$                40.3


     Accounts receivable, net of allow. for doubtful accts.


198.4


141.5


     Inventories


147.3


167.8


     Other current assets


56.2


52.2


        Total current assets


421.3


401.8








     Property, plant and equipment, net


351.1


349.6


     Goodwill and other intangible assets, net


1,219.2


1,237.8


     Other assets


26.8


28.1


       Total Assets


$           2,018.4


$           2,017.3








Liabilities and Shareholder's Equity






     Accounts payable


$              140.2


$              131.7


     Other current liabilities


52.5


54.9


     Current portion of long-term debt


7.3


7.3


        Total current liabilities


200.0


193.9








     Long-term debt (excluding current portion)


935.6


938.2


     Other long-term liabilities


334.6


339.0


     Shareholder's equity


548.2


546.2


        Total Liabilities and Shareholder's Equity


$           2,018.4


$           2,017.3








 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.