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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Libbey Inc | AMEX:LBY | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.7957 | 0 | 01:00:00 |
TOLEDO, Ohio, July 31, 2018 /PRNewswire/ -- Libbey Inc. (NYSE American: LBY), one of the world's largest glass tableware manufacturers, today reported results for the second quarter ended June 30, 2018.
Second Quarter 2018 Financial & Operating Highlights
"For the second quarter of 2018, we were pleased to deliver results that exceeded our internal expectations and reflected the strong momentum we are building this year," said Chief Executive Officer William Foley. "Net sales improved in all of our geographic regions with the exception of Asia Pacific, and we continued to experience strong contributions from new product introductions as well as our e-commerce platform. The strength of our competitive position, our new product offerings and our ability to service customers are enabling us to continue to improve our performance. We remain confident that the strategies we are implementing are the right decisions to drive profitable growth and long-term improvements in our financial performance."
Three months ended June 30, (dollars in thousands) |
Net Sales |
Increase/(Decrease) |
Currency Effects |
Constant Currency Sales Growth (Decline) | ||||||||||||||||||
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||
U.S. & Canada |
$ |
128,474 |
$ |
121,871 |
$ |
6,603 |
5.4 |
% |
$ |
28 |
5.4 |
% | ||||||||||
Latin America |
40,290 |
36,503 |
3,787 |
10.4 |
% |
(993) |
13.1 |
% | ||||||||||||||
EMEA |
38,175 |
31,054 |
7,121 |
22.9 |
% |
2,799 |
13.9 |
% | ||||||||||||||
Other |
6,595 |
8,086 |
(1,491) |
(18.4) |
% |
417 |
(23.6) |
% | ||||||||||||||
Consolidated |
$ |
213,534 |
$ |
197,514 |
$ |
16,020 |
8.1 |
% |
$ |
2,251 |
7.0 |
% |
First Six Months of 2018 Financial & Operating Highlights
Six months ended June 30, (dollars in thousands) |
Net Sales |
Increase/(Decrease) |
Currency Effects |
Constant Currency Sales Growth (Decline) | ||||||||||||||||||
2018 |
2017 |
$ Change |
% Change |
|||||||||||||||||||
U.S. & Canada |
$ |
236,415 |
$ |
231,200 |
$ |
5,215 |
2.3 |
% |
$ |
71 |
2.2 |
% | ||||||||||
Latin America |
74,623 |
67,225 |
7,398 |
11.0 |
% |
1,114 |
9.3 |
% | ||||||||||||||
EMEA |
70,423 |
56,385 |
14,038 |
24.9 |
% |
6,914 |
12.6 |
% | ||||||||||||||
Other |
13,986 |
15,698 |
(1,712) |
(10.9) |
% |
935 |
(16.9) |
% | ||||||||||||||
Consolidated |
$ |
395,447 |
$ |
370,508 |
$ |
24,939 |
6.7 |
% |
$ |
9,034 |
4.3 |
% |
Balance Sheet and Liquidity
Outlook
Today the Company affirmed its previously provided full-year 2018 sales and Adjusted EBITDA outlook, with expected Adjusted EBITDA margins (see Table 6) within the 10 percent to 11 percent range, but has modified selling, general and administrative guidance. The Company expects:
Jim Burmeister, senior vice president, chief financial officer, commented, "Key performance indicators across the business are continuing to show improvement. Anticipating that there may be challenges in retail channels as well as foreign trade policy uncertainty, we are tightly managing items within our control. We expect to deliver full-year SG&A as a percent of net sales in a range of 16 to 16.5 percent compared to our previous guidance of 17 percent. We're maintaining our previously provided outlook for full-year net sales and Adjusted EBITDA."
Webcast Information
Libbey will hold a conference call for investors on Tuesday, July 31, 2018, at 11 a.m. Eastern Daylight Time. The conference call will be webcast 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.
About Libbey Inc.
Based in Toledo, Ohio, Libbey Inc. is one of the largest glass tableware manufacturers in the world. Libbey Inc. operates manufacturing plants in the U.S., Mexico, China, Portugal and the Netherlands. In existence since 1818, the Company supplies tabletop products to retail, foodservice and business-to-business customers in over 100 countries. Libbey's global brand portfolio, in addition to its namesake brand, includes Libbey Signature®, Master's Reserve®, Crisa®, Royal Leerdam®, World® Tableware, Syracuse® China, and Crisal Glass®. In 2017, Libbey Inc.'s net sales totaled $781.8 million. Additional information is available at www.libbey.com.
Use of Non-GAAP Financial Measures
To supplement the condensed financial statements presented in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP), we use non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Trade Working Capital, Adjusted Selling, General & Administrative Expense (Adjusted SG&A), Adjusted SG&A Margin and our Debt Net of Cash to Adjusted EBITDA Ratio. Reconciliations to the nearest U.S. GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.
Our non-GAAP measures, as defined below, are used by analysts, investors and other interested parties to compare our performance with the performance of other companies that report similar non-GAAP measures. Libbey believes these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of core business operating results. We believe the non-GAAP measures, when viewed in conjunction with U.S. GAAP results and the accompanying reconciliations, enhance the comparability of results against prior periods and allow for additional transparency of financial results and business outlook. In addition, we use non-GAAP data internally to assess performance and facilitate management's internal comparison of our financial performance to that of prior periods, as well as trend analysis for budgeting and planning purposes. The presentation of our non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Furthermore, our non-GAAP measures may not be comparable to similarly titled measures reported by other companies and may have limitations as an analytical tool. We define our non-GAAP measures as follows:
Constant Currency
We translate revenue and expense accounts in our non-U.S. operations at current average exchange rates during the year. References to "constant currency," "excluding currency impact" and "adjusted for currency" are considered non-GAAP measures. Constant currency references regarding net sales reflect a simple mathematical translation of local currency results using the comparable prior period's currency conversion rate. Constant currency references regarding Adjusted EBITDA and Adjusted EBITDA Margin comprise a simple mathematical translation of local currency results using the comparable prior period's currency conversion rate plus the transactional impact of changes in exchange rates from revenues, expenses and assets and liabilities that are denominated in a currency other than the functional currency. We believe this non-GAAP constant currency information provides valuable supplemental information regarding our core operating results, better identifies operating trends that may otherwise be masked or distorted by exchange rate changes and provides a higher degree of transparency of information used by management in its evaluation of our ongoing operations. These non-GAAP measures should be viewed in addition to, and not as an alternative to, the reported results prepared in accordance with U.S. GAAP. Our currency market risks include currency fluctuations relative to the U.S. dollar, Canadian dollar, Mexican peso, euro and RMB.
Caution on Forward-Looking Statements
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 reflect only 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. 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 10-K filed with the Commission on March 1, 2018. Important factors potentially affecting performance include but are not limited to risks related to increased competition from foreign suppliers endeavoring to sell glass tableware, ceramic dinnerware and metalware in our core markets; global economic conditions and the related impact on consumer spending levels; major slowdowns or changes in trends in the retail, travel, restaurant and bar or entertainment industries that impact demand for our products; inability to meet the demand for new products; material restructuring charges related to involuntary employee terminations, facility abandonments, or other various restructuring activities; significant increases in per-unit costs for natural gas, electricity, freight, corrugated packaging, and other purchased materials; our ability to borrow under our ABL credit agreement; 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 euro, the Mexican peso, the RMB and the Canadian dollar and the earnings and cash flows of our international operations, expressed under U.S. GAAP; the effect of high levels of inflation in countries in which we operate or sell our products; the inability to achieve savings and profit improvements at targeted levels in the Company's operations or within the intended time periods; the failure of our investments in e-commerce, new technology and other capital expenditures to yield expected returns; failure to prevent unauthorized access, security breaches and cyber attacks to our information technology systems; compliance with, or the failure to comply with, legal requirements relating to health, safety and environmental protection; our failure to protect our intellectual property; and the inability to effectively integrate future business we acquire or joint ventures into which we enter. 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. | |||||||
Three months ended June 30, | |||||||
2018 |
2017 (1) | ||||||
Net sales |
$ |
213,534 |
$ |
197,514 |
|||
Freight billed to customers |
938 |
747 |
|||||
Total revenues |
214,472 |
198,261 |
|||||
Cost of sales |
167,979 |
156,868 |
|||||
Gross profit |
46,493 |
41,393 |
|||||
Selling, general and administrative expenses |
33,537 |
34,083 |
|||||
Income from operations |
12,956 |
7,310 |
|||||
Other income (expense) |
2,580 |
(852) |
|||||
Earnings before interest and income taxes |
15,536 |
6,458 |
|||||
Interest expense |
5,456 |
5,138 |
|||||
Income before income taxes |
10,080 |
1,320 |
|||||
Provision for income taxes |
6,092 |
2,152 |
|||||
Net income (loss) |
$ |
3,988 |
$ |
(832) |
|||
Net income (loss) per share: |
|||||||
Basic |
$ |
0.18 |
$ |
(0.04) |
|||
Diluted |
$ |
0.18 |
$ |
(0.04) |
|||
Dividends declared per share |
$ |
— |
$ |
0.1175 |
|||
Weighted average shares: |
|||||||
Basic |
22,170 |
22,030 |
|||||
Diluted |
22,356 |
22,030 |
____________________ | |
(1) |
In connection with our January 1, 2018 adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, we reclassed the 2017 non-service cost components of pension and post-retirement benefit costs previously reported within income from operations to other income (expense). |
Libbey Inc. | |||||||
Six months ended June 30, | |||||||
2018 |
2017 (1) | ||||||
Net sales |
$ |
395,447 |
$ |
370,508 |
|||
Freight billed to customers |
1,695 |
1,423 |
|||||
Total revenues |
397,142 |
371,931 |
|||||
Cost of sales |
316,979 |
299,341 |
|||||
Gross profit |
80,163 |
72,590 |
|||||
Selling, general and administrative expenses |
65,060 |
67,415 |
|||||
Income from operations |
15,103 |
5,175 |
|||||
Other income (expense) |
473 |
(3,638) |
|||||
Earnings before interest and income taxes |
15,576 |
1,537 |
|||||
Interest expense |
10,540 |
10,005 |
|||||
Income (loss) before income taxes |
5,036 |
(8,468) |
|||||
Provision (benefit) for income taxes |
4,009 |
(1,066) |
|||||
Net income (loss) |
$ |
1,027 |
$ |
(7,402) |
|||
Net income (loss) per share: |
|||||||
Basic |
$ |
0.05 |
$ |
(0.34) |
|||
Diluted |
$ |
0.05 |
$ |
(0.34) |
|||
Dividends declared per share |
$ |
0.1175 |
$ |
0.2350 |
|||
Weighted average shares: |
|||||||
Basic |
22,131 |
21,984 |
|||||
Diluted |
22,167 |
21,984 |
|||||
______________________ | |
(1) |
In connection with our January 1, 2018 adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, we reclassed the 2017 non-service cost components of pension and post-retirement benefit costs previously reported within income from operations to other income (expense). |
Libbey Inc. | |||||||
June 30, 2018 |
December 31, 2017 | ||||||
(unaudited) |
|||||||
ASSETS: |
|||||||
Cash and cash equivalents |
$ |
19,818 |
$ |
24,696 |
|||
Accounts receivable — net |
100,948 |
89,997 |
|||||
Inventories — net |
200,818 |
187,886 |
|||||
Prepaid and other current assets |
18,406 |
12,550 |
|||||
Total current assets |
339,990 |
315,129 |
|||||
Pension asset |
3,638 |
2,939 |
|||||
Purchased intangible assets — net |
13,967 |
14,565 |
|||||
Goodwill |
84,412 |
84,412 |
|||||
Deferred income taxes |
24,585 |
24,892 |
|||||
Other assets |
10,398 |
9,627 |
|||||
Property, plant and equipment — net |
264,206 |
265,675 |
|||||
Total assets |
$ |
741,196 |
$ |
717,239 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|||||||
Accounts payable |
$ |
80,686 |
$ |
78,346 |
|||
Salaries and wages |
23,515 |
27,409 |
|||||
Accrued liabilities |
50,465 |
43,223 |
|||||
Accrued income taxes |
3,976 |
1,862 |
|||||
Pension liability (current portion) |
2,172 |
2,185 |
|||||
Non-pension post-retirement benefits (current portion) |
4,178 |
4,185 |
|||||
Derivative liability |
— |
697 |
|||||
Long-term debt due within one year |
6,085 |
7,485 |
|||||
Total current liabilities |
171,077 |
165,392 |
|||||
Long-term debt |
397,626 |
376,905 |
|||||
Pension liability |
40,303 |
43,555 |
|||||
Non-pension post-retirement benefits |
49,152 |
49,758 |
|||||
Deferred income taxes |
1,802 |
1,850 |
|||||
Other long-term liabilities |
12,114 |
12,885 |
|||||
Total liabilities |
672,074 |
650,345 |
|||||
Common stock and capital in excess of par value |
334,510 |
333,231 |
|||||
Retained deficit |
(162,458) |
(161,165) |
|||||
Accumulated other comprehensive loss |
(102,930) |
(105,172) |
|||||
Total shareholders' equity |
69,122 |
66,894 |
|||||
Total liabilities and shareholders' equity |
$ |
741,196 |
$ |
717,239 |
Libbey Inc. | |||||||
Six months ended June 30, | |||||||
2018 |
2017 | ||||||
Operating activities: |
|||||||
Net income (loss) |
$ |
1,027 |
$ |
(7,402) |
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
23,119 |
22,383 |
|||||
Loss on asset sales and disposals |
232 |
54 |
|||||
Change in accounts receivable |
(11,477) |
(2,538) |
|||||
Change in inventories |
(13,956) |
(7,182) |
|||||
Change in accounts payable |
919 |
(6,344) |
|||||
Accrued interest and amortization of discounts and finance fees |
449 |
713 |
|||||
Pension & non-pension post-retirement benefits, net |
176 |
2,982 |
|||||
Accrued liabilities & prepaid expenses |
1,215 |
9,442 |
|||||
Income taxes |
(1,698) |
(3,619) |
|||||
Share-based compensation expense |
1,456 |
2,148 |
|||||
Other operating activities |
(662) |
(728) |
|||||
Net cash provided by operating activities |
800 |
9,909 |
|||||
Investing activities: |
|||||||
Additions to property, plant and equipment |
(21,349) |
(27,048) |
|||||
Net cash used in investing activities |
(21,349) |
(27,048) |
|||||
Financing activities: |
|||||||
Borrowings on ABL credit facility |
51,131 |
3,277 |
|||||
Repayments on ABL credit facility |
(28,631) |
(3,277) |
|||||
Other repayments |
(1,383) |
(169) |
|||||
Repayments on Term Loan B |
(2,200) |
(12,200) |
|||||
Stock options exercised |
— |
466 |
|||||
Taxes paid on distribution of equity awards |
(214) |
(601) |
|||||
Dividends |
(2,595) |
(5,169) |
|||||
Other financing activities |
— |
888 |
|||||
Net cash provided by (used in) financing activities |
16,108 |
(16,785) |
|||||
Effect of exchange rate fluctuations on cash |
(437) |
1,080 |
|||||
Decrease in cash |
(4,878) |
(32,844) |
|||||
Cash & cash equivalents at beginning of period |
24,696 |
61,011 |
|||||
Cash & cash equivalents at end of period |
$ |
19,818 |
$ |
28,167 |
In accordance with the SEC's Regulation G, the following tables provide non-GAAP measures used in this earnings release and a reconciliation to the most closely related U.S. GAAP measure. See the above text for additional information on our non-GAAP measures. 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 U.S. GAAP.
Table 1 |
||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) | ||||||||||||||||
(dollars in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
2018 |
2017 |
2018 |
2017 | |||||||||||||
Reported net income (loss) (U.S. GAAP) |
$ |
3,988 |
$ |
(832) |
$ |
1,027 |
$ |
(7,402) |
||||||||
Add: |
||||||||||||||||
Interest expense |
5,456 |
5,138 |
10,540 |
10,005 |
||||||||||||
Provision (benefit) for income taxes |
6,092 |
2,152 |
4,009 |
(1,066) |
||||||||||||
Depreciation and amortization |
11,240 |
11,228 |
23,119 |
22,383 |
||||||||||||
Add special items before interest and taxes: |
||||||||||||||||
Reorganization charges (1) |
— |
2,488 |
— |
2,488 |
||||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
26,776 |
$ |
20,174 |
$ |
38,695 |
$ |
26,408 |
||||||||
Net sales |
$ |
213,534 |
$ |
197,514 |
$ |
395,447 |
$ |
370,508 |
||||||||
Net income (loss) margin (U.S. GAAP) |
1.9 |
% |
(0.4) |
% |
0.3 |
% |
(2.0) |
% | ||||||||
Adjusted EBITDA margin (non-GAAP) |
12.5 |
% |
10.2 |
% |
9.8 |
% |
7.1 |
% | ||||||||
___________ |
||||||||||||||||
(1) Workforce reorganization as a part of our cost savings initiatives. |
Table 2 |
||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | ||||||||
(dollars in thousands) |
||||||||
(unaudited) |
||||||||
Six months ended June 30, | ||||||||
2018 |
2017 | |||||||
Net cash provided by operating activities (U.S. GAAP) |
$ |
800 |
$ |
9,909 |
||||
Net cash used in investing activities (U.S. GAAP) |
(21,349) |
(27,048) |
||||||
Free Cash Flow (non-GAAP) |
$ |
(20,549) |
$ |
(17,139) |
||||
Table 3 |
||||||||||||
Reconciliation to Trade Working Capital |
||||||||||||
(dollars in thousands) |
||||||||||||
(unaudited) |
||||||||||||
June 30, 2018 |
December 31, 2017 |
June 30, 2017 | ||||||||||
Accounts receivable — net |
$ |
100,948 |
$ |
89,997 |
$ |
88,969 |
||||||
Inventories — net |
200,818 |
187,886 |
180,066 |
|||||||||
Less: Accounts payable |
80,686 |
78,346 |
66,636 |
|||||||||
Trade Working Capital (non-GAAP) |
$ |
221,080 |
$ |
199,537 |
$ |
202,399 |
Table 4 |
||||||||||||||||
Summary Business Segment Information |
||||||||||||||||
(dollars in thousands) |
Three months ended June 30, |
Six months ended June 30, | ||||||||||||||
Net Sales: |
2018 |
2017 |
2018 |
2017 | ||||||||||||
U.S. & Canada (1) |
$ |
128,474 |
$ |
121,871 |
$ |
236,415 |
$ |
231,200 |
||||||||
Latin America (2) |
40,290 |
36,503 |
74,623 |
67,225 |
||||||||||||
EMEA (3) |
38,175 |
31,054 |
70,423 |
56,385 |
||||||||||||
Other (4) |
6,595 |
8,086 |
13,986 |
15,698 |
||||||||||||
Consolidated |
$ |
213,534 |
$ |
197,514 |
$ |
395,447 |
$ |
370,508 |
||||||||
Segment Earnings Before Interest & Taxes (Segment EBIT) (5) : |
||||||||||||||||
U.S. & Canada (1) |
$ |
13,358 |
$ |
15,045 |
$ |
18,082 |
$ |
22,546 |
||||||||
Latin America (2) |
7,433 |
1,907 |
9,583 |
(1,172) |
||||||||||||
EMEA (3) |
2,621 |
(2,057) |
3,626 |
(2,894) |
||||||||||||
Other (4) |
660 |
(854) |
(469) |
(2,069) |
||||||||||||
Segment EBIT |
$ |
24,072 |
$ |
14,041 |
$ |
30,822 |
$ |
16,411 |
||||||||
Reconciliation of Segment EBIT to Net Income (Loss): |
||||||||||||||||
Segment EBIT |
$ |
24,072 |
$ |
14,041 |
$ |
30,822 |
$ |
16,411 |
||||||||
Retained corporate costs (6) |
(8,536) |
(5,095) |
(15,246) |
(12,386) |
||||||||||||
Reorganization charges |
— |
(2,488) |
— |
(2,488) |
||||||||||||
Interest expense |
(5,456) |
(5,138) |
(10,540) |
(10,005) |
||||||||||||
(Provision) benefit for income taxes |
(6,092) |
(2,152) |
(4,009) |
1,066 |
||||||||||||
Net income (loss) |
$ |
3,988 |
$ |
(832) |
$ |
1,027 |
$ |
(7,402) |
||||||||
Depreciation & Amortization: |
||||||||||||||||
U.S. & Canada (1) |
$ |
3,052 |
$ |
3,084 |
$ |
6,439 |
$ |
6,166 |
||||||||
Latin America (2) |
4,494 |
4,510 |
9,204 |
8,907 |
||||||||||||
EMEA (3) |
1,940 |
1,848 |
3,949 |
3,692 |
||||||||||||
Other (4) |
1,309 |
1,329 |
2,623 |
2,683 |
||||||||||||
Corporate |
445 |
457 |
904 |
935 |
||||||||||||
Consolidated |
$ |
11,240 |
$ |
11,228 |
$ |
23,119 |
$ |
22,383 |
(1) |
U.S. & Canada—includes sales of manufactured and sourced tableware having an end-market destination in the U.S and Canada, excluding glass products for Original Equipment Manufacturers (OEM), which remain in the Latin America segment. |
(2) |
Latin America—includes primarily sales of manufactured and sourced glass tableware having an end-market destination in Latin America, as well as glass products for OEMs regardless of end-market destination. |
(3) |
EMEA—includes primarily sales of manufactured and sourced glass tableware having an end-market destination in Europe, the Middle East and Africa. |
(4) |
Other—includes primarily sales of manufactured and sourced glass tableware having an end-market destination in Asia Pacific. |
(5) |
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 and other allocations that are not considered by management when evaluating performance. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. |
(6) |
Retained corporate costs include certain headquarter, administrative and facility costs, and other costs that are not allocable to the reporting segments. |
Table 5 |
|||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Debt Net of Cash to Adjusted EBITDA Ratio | |||||||||||
(dollars in thousands) |
|||||||||||
(unaudited) |
|||||||||||
Last twelve months ended |
Year ended |
Last twelve months ended | |||||||||
Reported net income (loss) (U.S. GAAP) |
$ |
(84,939) |
$ |
(93,368) |
$ |
(6,742) |
|||||
Add: |
|||||||||||
Interest expense |
20,935 |
20,400 |
20,495 |
||||||||
Provision (benefit) for income taxes |
20,873 |
15,798 |
10,092 |
||||||||
Depreciation and amortization |
46,280 |
45,544 |
45,434 |
||||||||
Special items before interest and taxes |
79,700 |
82,188 |
5,356 |
||||||||
Adjusted EBITDA (non-GAAP) |
$ |
82,849 |
$ |
70,562 |
$ |
74,635 |
|||||
Reported debt on balance sheet (U.S. GAAP) |
$ |
403,711 |
$ |
384,390 |
$ |
396,381 |
|||||
Plus: Unamortized discount and finance fees |
2,874 |
3,295 |
3,840 |
||||||||
Gross debt |
406,585 |
387,685 |
400,221 |
||||||||
Less: Cash and cash equivalents |
19,818 |
24,696 |
28,167 |
||||||||
Debt net of cash |
$ |
386,767 |
$ |
362,989 |
$ |
372,054 |
|||||
Debt Net of Cash to Adjusted EBITDA Ratio (non-GAAP) |
4.7x |
5.1 x |
5.0 x |
Table 6 |
||||
2018 Outlook |
||||
Reconciliation of Net Income (Loss) margin to Adjusted EBITDA Margin |
||||
(percent of estimated 2018 net sales) |
||||
(unaudited) |
||||
Outlook for the year ended December 31, 2018 | ||||
Net income (loss) margin (U.S. GAAP) |
0.7% - 1.2% | |||
Add: |
||||
Interest expense |
2.7% | |||
Provision for income taxes |
0.9% - 1.4% | |||
Depreciation and amortization |
5.7% | |||
Special items before interest and taxes |
—% | |||
Adjusted EBITDA Margin (non-GAAP) |
10.0% - 11.0% |
Table 7 |
||||||
Adjusted SG&A Margin | ||||||
(percent of net sales) |
||||||
(unaudited) |
||||||
Outlook for the |
Year ended | |||||
SG&A margin (U.S. GAAP) |
16 .0% - 16.5% |
16.0 % | ||||
Deduct special items in SG&A expenses: |
||||||
Reorganization charges |
—% |
(0.3)% | ||||
Adjusted SG&A Margin (non-GAAP) |
16.0% - 16.5% |
15.7% | ||||
View original content:http://www.prnewswire.com/news-releases/libbey-inc-announces-second-quarter-results-300689171.html
SOURCE Libbey Inc.
Copyright 2018 PR Newswire
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