CHICAGO--(BUSINESS WIRE)--Coveris Holdings S.A. reported third quarter 2015 net sales of $677 million. Net sales for the third quarter of 2014 were $687 million. Excluding the impact of foreign exchange, pass-through of lower resin costs, and acquisitions, net sales for the third quarter of 2015 were up 2.5% from 2014. Adjusted EBITDA for the third quarter was $84 million. Excluding currency impacts, adjusted EBITDA was $92 million, compared to $82 million in 2014.
“Coveris reported solid operational and financial results for the third quarter,” said Gary Masse, President and Chief Executive Officer. “Using the tools and processes of the Coveris Business System, we have made progress on pricing, productivity and organic growth plans.”
Please see our Adjusted EBITDA Reconciliation attached to this press release. Additional financial information may be found on www.coveris.com under the Investor Relations section.
EARNINGS CALL
A conference call hosted by management to discuss these financial results will be held on November 12, 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 November 12 until November 26, by dialing 877-660-6853 (domestic) or 201-612-7415 (international) with the conference ID of 13624505.
ABOUT COVERIS™
As a leading international manufacturing company, Coveris is dedicated to providing solutions that enhance the safety, quality and convenience of products we use every day. In partnership with the most respected brands in the world, Coveris develops vital products that protect everything from the food we eat, to medical supplies, to the touch screen device in our pockets, contributing to the lives of millions every day.
Coveris is an affiliated portfolio company of Sun Capital Partners, Inc.
FORWARD-LOOKING STATEMENTS
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 NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA | ||||||||||||||||||
| (Expressed in millions of U.S. dollars) | ||||||||||||||||||
| Three Months | Three Months |
Nine Months |
Nine Months | |||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||
| 30-Sep-15 | 30-Sep-14 | 30-Sep-15 | 30-Sep-14 | |||||||||||||||
| U.S. GAAP Net income (loss) | $ | (3.288 | ) | $ | (39.849 | ) | $ | (34.461 | ) | $ | (59.866 | ) | ||||||
| Interest expense, net | $ | 33.388 | $ | 32.617 | $ | 95.085 | $ | 96.797 | ||||||||||
| (Benefit) provision for income taxes | $ | 3.064 | $ | (1.443 | ) | $ | (3.725 | ) | $ | 1.760 | ||||||||
| Depreciation and amortization | $ | 37.970 | $ | 39.311 | $ | 109.546 | $ | 117.349 | ||||||||||
| Non-GAAP EBITDA | $ | 71.134 | $ | 30.636 | $ | 166.445 | $ | 156.040 | ||||||||||
| Acquisition Adjustments (a): | ||||||||||||||||||
| Unadjusted St. Neots EBITDA prior to Fund V acquisition | $ | - | $ | - | $ | - | $ | 3.037 | ||||||||||
| Unadjusted Learoyd EBITDA prior to Fund V acquisition | $ | - | $ | 0.547 | $ | - | $ | 2.279 | ||||||||||
| Unadjusted Coveris Australasia EBITDA prior to Fund V acquisition | $ | - | $ | 0.386 | $ | (0.534 | ) | $ | 1.492 | |||||||||
| Unadjusted Olefinas EBITDA prior to Fund V acquisition | $ | - | $ | 3.916 | $ | 8.266 | $ | 12.424 | ||||||||||
| Non-GAAP EBITDA after Acquisition Adjustments | $ | 71.134 | $ | 35.485 | $ | 174.177 | $ | 175.272 | ||||||||||
| Special Items: | ||||||||||||||||||
| PPA Adjustments and FX translation | $ | (8.375 | ) | $ | 20.509 | $ | 18.066 | $ | 17.263 | |||||||||
| Restructuring and related relocation costs(b) | $ | 6.612 | $ | 11.089 | $ | 22.498 | $ | 26.538 | ||||||||||
| Management fees and expenses | $ | 1.827 | $ | 2.369 | $ | 6.445 | $ | 7.551 | ||||||||||
| Transaction related expenses(c) | $ | 2.651 | $ | 4.065 | $ | 6.475 | $ | 7.697 | ||||||||||
| Business improvement consulting cost | $ | 5.017 | $ | 6.432 | $ | 16.151 | $ | 12.762 | ||||||||||
| (Gain) loss on disposal of assets | $ | (0.130 | ) | $ | 0.499 | $ | (1.152 | ) | $ | 1.483 | ||||||||
| Pension revaluation | $ | 0.211 | $ | 0.416 | $ | 0.634 | $ | 1.254 | ||||||||||
| Other expenses(d) | $ | 4.758 | $ | 1.003 | $ | 8.342 | $ | 14.145 | ||||||||||
| Total Special Items: | $ | 12.571 | $ | 46.382 | $ | 77.459 | $ | 88.693 | ||||||||||
| Non-GAAP Adjusted EBITDA | $ | 83.705 | $ | 81.867 | $ | 251.636 | $ | 263.965 | ||||||||||
| (a) Adjustments to retrospectively include results of certain entities prior to the Company's acquisition of the entity. | ||||||||||||||||||
| (b) Costs associated primarily with various restructuring activities, employee relocation expenses or employee severance costs. | ||||||||||||||||||
| (c) Costs associated with the Combination, transactions and acquisition costs. | ||||||||||||||||||
| (d) Costs associated with information technology, consulting, rebranding and other infrequent expenses. | ||||||||||||||||||