GREENVILLE, S.C.--(BUSINESS WIRE)--Coveris Holdings S.A. reported first quarter 2014 net sales of $687 million. Pro forma net sales for the first quarter of 2013 were $679 million. Adjusted EBITDA for the quarter was $74 million versus a pro forma adjusted EBITDA of $61 million in the same period last year, up 22%.
“I am pleased to report a strong quarterly adjusted EBITDA performance for the combined company,” said Gary Masse, Chief Executive Officer. “After having spent some six weeks reviewing our operations and people and meeting with some of our customers and suppliers, I believe Coveris is a solid company with many competitive advantages and I believe we can continue to grow our business into a successful world class operation.”
BUSINESS SEGMENT RESULTS
Coveris is divided into two reporting segments – Flexible and Rigid. The Flexible segment had net sales of $516 million for the quarter, which was up 1.8% on a like for like basis from $507 million from the same period last year. The increase is the result of favorable foreign exchange impacts offset by decreased sales in our low-margin European resin trading business.
The Rigid segment had pro forma net sales of $172 million for the first quarter, which was essentially flat on a like for like basis from the same period last year. Currency impacts offset shipment volume declines.
Please see our Adjusted Pro Forma EBITDA Reconciliation attached to this press release. Additional financial information may be found on www.coveris.com under the Investors section.
A conference call hosted by management to discuss these financial results will be held tomorrow, May 28, at 10:00 am, Eastern. The conference call number is 877-407-8031 (domestic) or 201-689-8031 (international). A replay of the call will be available after 1:30 pm, Eastern on May 28 until June 11, by dialing 877-660-6853 (domestic) or 201-612-7415 (international) with the conference ID of 13583389.
Coveris is the sixth largest global packaging company in the world. Formed by the combination of Exopack, Britton Group, Kobusch, PACCOR and Paragon Print & Packaging, the company is an established leader in the development, manufacture, and sourcing of flexible and rigid plastic and paper packaging, as well as coatings solutions for various consumer and industrial end-use markets. With aggregate revenues of more than US$2.8B, the company manages 65 plants across North America, Europe, the Middle East, and China. Coveris is an affiliated portfolio company of Sun Capital Partners, Inc.
Statements in this release that are not historical are "forward-looking statements." Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business. You are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect Coveris’ operations, markets, products, services, prices and other factors. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, any forward-looking statements are made only as of the date of this release, and Coveris does not intend and does not assume any obligation to update any statements set forth in this release.
|COVERIS HOLDINGS S.A.|
|RECONCILIATION OF PRO FORMA NET INCOME (LOSS) TO ADJUSTED PRO FORMA EBITDA|
|(Expressed in millions of U.S. dollars)|
|Three Months||Three Months|
|U.S. GAAP Net income (loss)||$||(14.5||)||$||(15.6||)|
|Interest expense, net||$||31.0||$||14.1|
|Benefit (provision) for income taxes||$||(1.2||)||$||2.2|
|Depreciation and amortization||$||38.0||$||23.8|
|PPA Adjustments and FX translation||$||1.9||$||5.4|
|Unadjusted EBITDA, net of PPA adjustments||$||55.2||$||29.8|
|Pro Forma adjustments: (a)|
|Unadjusted Exopack EBITDA prior to Fund V acquisition||$||-||$||21.4|
|Unadjusted Closures EBITDA prior to Fund V acquisition||$||-||$||1.8|
|Unadjusted Intellicoat EBITDA prior to Fund V acquisition||$||-||$||0.4|
|Unadjusted Pro Forma EBITDA, net of PPA adjustments||$||55.2||$||53.5|
|Restructuring and related relocation costs (b)||$||5.7||$||4.3|
|Management fees and expenses||$||2.8||$||4.2|
Transaction related expenses (c)
|Business improvement consulting cost||$||1.1||$||0.7|
|(Gain) loss on disposal of assets||$||0.2||$||(5.0||)|
|Other expenses (d)||$||8.5||$||2.6|
|Adjusted Pro Forma EBITDA||$||74.3||$||61.0|
|(a) Pro forma adjustments to retrospectively include results of certain entities prior to Fund V acquisition for US GAAP reporting purposes|
|(b) Costs associated primarily with various restructuring activities, employee relocation expenses or employee serverance costs.|
(c) Costs associated with the Combination, Dividend recapitalization transaction and acquisition costs.
|(d) Costs associated with information technology, consulting, rebranding and other infrequent or non-recurring expenses.|