TOLEDO, Ohio, May 1, 2018 /PRNewswire/ -- Libbey Inc.
(NYSE American: LBY), one of the world's largest glass
tableware manufacturers, today reported results for the first
quarter ended March 31, 2018.
First Quarter Financial & Operating Highlights
- Net sales in the first quarter of 2018 were $181.9 million, compared to $173.0 million in the prior-year, a 5.2 percent
increase (or an increase of 1.4 percent, excluding a $6.5 million currency impact).
- Net loss in the first quarter of 2018 was $3.0 million, compared to a net loss of
$6.6 million in the first quarter of
2017.
- Adjusted EBITDA (see Table 1) in the first quarter of 2018 was
$11.9 million, compared to
$6.2 million in the first quarter of
2017, a 91.2 percent increase compared to the prior-year first
quarter.
"We started fiscal-year 2018 on a positive note by building upon
our momentum from the fourth quarter," said Chief Executive Officer
William Foley. "We are encouraged by
the strong performances from our Latin
America and EMEA segments, and the contributions from new
product introductions and our e-commerce platform. Our ongoing
initiatives to help improve profitability are paying off, as
evidenced by an increase in Adjusted EBITDA of more than 90 percent
during the first quarter. We expect to see a continuation of these
positive trends in the business throughout the remainder of the
year and, as a result, we remain confident in our previously
provided full-year net sales and Adjusted EBITDA outlook."
Three months ended
March 31,
(dollars in
thousands)
|
|
Net
Sales
|
|
Increase/(Decrease)
|
|
Currency
Effects
|
|
Constant
Currency
Sales
Growth
(Decline)
|
|
|
2018
|
|
2017
|
|
$
Change
|
|
%
Change
|
|
|
U.S. &
Canada
|
|
$
|
107,941
|
|
|
$
|
109,329
|
|
|
$
|
(1,388)
|
|
|
(1.3)
|
%
|
|
$
|
49
|
|
|
(1.3)
|
%
|
Latin
America
|
|
34,333
|
|
|
30,722
|
|
|
3,611
|
|
|
11.8
|
%
|
|
1,807
|
|
|
5.9
|
%
|
EMEA
|
|
32,248
|
|
|
25,331
|
|
|
6,917
|
|
|
27.3
|
%
|
|
4,087
|
|
|
11.2
|
%
|
Other
|
|
7,391
|
|
|
7,612
|
|
|
(221)
|
|
|
(2.9)
|
%
|
|
521
|
|
|
(9.7)
|
%
|
Consolidated
|
|
$
|
181,913
|
|
|
$
|
172,994
|
|
|
$
|
8,919
|
|
|
5.2
|
%
|
|
$
|
6,464
|
|
|
1.4
|
%
|
- Net sales in the U.S. and Canada segment decreased 1.3 percent, driven
by unfavorable product mix sold in the business-to-business and
foodservice channels and unfavorable channel mix in the segment,
partially offset by favorable volume.
- In Latin America, net sales
increased 11.8 percent (an increase of 5.9 percent excluding
currency fluctuation) as a result of higher volume, pricing and a
favorable currency impact, partially offset by unfavorable product
mix in the business-to-business channel and unfavorable channel
mix.
- Net sales in the EMEA segment were favorably impacted by
currency, higher volume and favorable price and product mix on
product sold across all channels.
- Net sales in Other were down primarily as a result of lower
sales volume in China, partially
offset by favorable price and product mix.
- The Company's effective tax rate was 41.3 percent for the first
quarter of 2018, compared to 32.9 percent in the prior-year
quarter. Our tax provision for the first quarter was not materially
affected by U.S. tax reform due to changes such as GILTI (Global
Intangible Low Taxed Income) and restrictions on the deductibility
of certain expenses that partially offset the tax rate reduction.
In addition, the relative weight of U.S. versus non-U.S. income
during the quarter diluted the impact of U.S. tax reform on our
consolidated tax rate. The increased effective tax rate in 2018 was
primarily driven by the timing and mix of pretax income earned in
the non-U.S. tax jurisdictions with varying effective tax
rates.
Balance Sheet and Liquidity
- The Company had remaining available capacity of $61.8 million under its ABL credit facility at
March 31, 2018, with $30.2 million in loans outstanding and cash on
hand of $25.7 million.
- At March 31, 2018, Trade Working
Capital (see Table 3), defined as inventories and accounts
receivable less accounts payable, was $215.9
million, an increase of $27.6
million from $188.3 million at
March 31, 2017. The increase was
primarily a result of higher inventories and higher accounts
receivable, partially offset by higher accounts payable.
Inventories are higher versus the prior year in support of an
anticipated second quarter furnace rebuild and lower inventory at
March 31, 2017, as a result of the
labor strike in Toledo during late
2016. $5.7 million of the increase in
Trade Working Capital was attributable to the effect of
currency.
Outlook
Today the Company affirmed its previously provided full-year
2018 outlook, with expected Adjusted EBITDA margins (see Table 6)
within the 10 percent to 11 percent range. The Company still
expects:
- Net sales increase in the low-single digits, compared to
full-year 2017, on a reported basis
- Capital expenditures in the range of $50
million to $55 million
- Selling, general and administrative expense around 17 percent
of net sales
For the first half of 2018, the Company affirmed the
following:
- Net sales increase in the low-single digits, when compared to
the first half of 2017, on a reported basis
- Adjusted EBITDA margins of 8.5 percent to 9.5 percent (see
Table 6)
Jim Burmeister, vice president,
chief financial officer, commented, "We're continuing to invest in
the important strategic areas of our business while maintaining the
competitive strength of our balance sheet. Debt reduction remains a
priority for excess cash flow over the near-term horizon, and
improving financial performance throughout the year should enable
us to pursue this objective."
New Accounting Standards Adopted
On January 1, 2018, the Company
adopted three Accounting Standard Updates (ASUs) with the following
impacts:
- ASU 2017-12, Derivatives and Hedging (Topic 815):
Targeted Improvements to Accounting for Hedging Activities.
- Prior to January 1, 2018, our
derivatives used to reduce economic volatility of natural gas
prices in Mexico were not
designated as cash flow hedges, and all mark-to-market changes on
these derivatives were reflected in other income (expense). Under
the new guidance in ASU 2017-12, we are now applying contractually
specified component hedging to all of our natural gas hedges,
including those in Mexico. As of
our January 1, 2018 adoption, we
recorded a $0.3 million reduction to
our retained deficit and an increase in accumulated other
comprehensive loss related to our natural gas swap contracts in
Mexico. On a prospective basis
beginning January 1, 2018, the change
in fair value of these derivatives is recognized in other
comprehensive income (loss), rather than other income (expense),
within the Condensed Consolidated Statement of Operations. Results
for prior reporting periods are not adjusted and continue to be
reported in accordance with our previous accounting.
- ASU 2017-07, Compensation - Retirement Benefits (Topic
715): Improving the Presentation of Net Periodic Pension Cost
and Net Periodic Post-retirement Benefit Cost. - We
retrospectively adopted the presentation that only the service cost
component of pension and post-retirement benefit costs be reported
within income from operations. The other components of net benefit
cost (interest costs, expected return on assets, amortization of
prior service costs, settlement charges and other costs) have been
reclassified from cost of sales and selling, general and
administrative expenses to other income (expense) for the three
months ended March 31, 2017. The
effect of the retrospective presentation change related to the net
periodic pension and non-pension benefit costs had no impact on
previously reported net income (loss), Segment EBIT or Adjusted
EBITDA.
- ASU 2014-09, Revenue From Contracts With Customers and
all related amendments. - There was no cumulative effect adjustment
required at adoption on January 1,
2018, and we expect the impact of the adoption of the new
standard to be immaterial to our Condensed Consolidated Statement
of Operations on an ongoing basis. Additionally, there was no
impact to our Condensed Consolidated Balance Sheets.
Webcast Information
Libbey will hold a conference call for investors on Tuesday, May 1, 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:
- We define Adjusted EBITDA and Adjusted EBITDA Margin as U.S.
GAAP net income (loss) plus interest expense, provision for income
taxes, depreciation and amortization, and special items, when
applicable, that Libbey believes are not reflective of our core
operating performance.
- We define Trade Working Capital as net accounts receivable plus
net inventories less accounts payable.
- We define Adjusted SG&A and Adjusted SG&A Margin as
U.S. GAAP selling, general and administrative expenses less special
items that Libbey believes are not reflective of our core operating
performance.
- We define our Debt Net of Cash to Adjusted EBITDA Ratio as
gross debt before unamortized discount and finance fees, less cash
and cash equivalents, divided by Adjusted EBITDA (defined
above).
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.
Condensed
Consolidated Statements of Operations
(dollars in
thousands, except per share amounts)
(unaudited)
|
|
|
|
Three months ended
March 31,
|
|
2018
|
|
2017
|
|
|
|
|
Net sales
|
$
|
181,913
|
|
|
$
|
172,994
|
|
Freight billed to
customers
|
757
|
|
|
676
|
|
Total
revenues
|
182,670
|
|
|
173,670
|
|
Cost of
sales
|
149,000
|
|
|
142,473
|
|
Gross
profit
|
33,670
|
|
|
31,197
|
|
Selling, general and
administrative expenses
|
31,523
|
|
|
33,332
|
|
Income (loss) from
operations
|
2,147
|
|
|
(2,135)
|
|
Other
expense
|
(2,107)
|
|
|
(2,786)
|
|
Earnings (loss)
before interest and income taxes
|
40
|
|
|
(4,921)
|
|
Interest
expense
|
5,084
|
|
|
4,867
|
|
Loss before income
taxes
|
(5,044)
|
|
|
(9,788)
|
|
Benefit from income
taxes
|
(2,083)
|
|
|
(3,218)
|
|
Net loss
|
$
|
(2,961)
|
|
|
$
|
(6,570)
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic
|
$
|
(0.13)
|
|
|
$
|
(0.30)
|
|
Diluted
|
$
|
(0.13)
|
|
|
$
|
(0.30)
|
|
Dividends declared
per share
|
$
|
0.1175
|
|
|
$
|
0.1175
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
Basic
|
22,087
|
|
|
21,939
|
|
Diluted
|
22,087
|
|
|
21,939
|
|
Libbey
Inc.
Condensed
Consolidated Balance Sheets
(dollars in
thousands)
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
(unaudited)
|
|
|
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
25,746
|
|
|
$
|
24,696
|
|
Accounts receivable —
net
|
85,593
|
|
|
89,997
|
|
Inventories —
net
|
203,644
|
|
|
187,886
|
|
Prepaid and other
current assets
|
16,365
|
|
|
12,550
|
|
Total current
assets
|
331,348
|
|
|
315,129
|
|
Pension
asset
|
3,639
|
|
|
2,939
|
|
Purchased intangibles
— net
|
14,390
|
|
|
14,565
|
|
Goodwill
|
84,412
|
|
|
84,412
|
|
Deferred income
taxes
|
25,977
|
|
|
24,892
|
|
Other
assets
|
10,740
|
|
|
9,627
|
|
Property, plant and
equipment — net
|
266,641
|
|
|
265,675
|
|
Total
assets
|
$
|
737,147
|
|
|
$
|
717,239
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY:
|
|
|
|
Accounts
payable
|
$
|
73,305
|
|
|
$
|
78,346
|
|
Salaries and
wages
|
22,806
|
|
|
27,409
|
|
Accrued
liabilities
|
43,855
|
|
|
43,223
|
|
Accrued income
taxes
|
824
|
|
|
1,862
|
|
Pension liability
(current portion)
|
2,341
|
|
|
2,185
|
|
Non-pension
post-retirement benefits (current portion)
|
4,181
|
|
|
4,185
|
|
Derivative
liability
|
87
|
|
|
697
|
|
Long-term debt due
within one year
|
6,177
|
|
|
7,485
|
|
Total current
liabilities
|
153,576
|
|
|
165,392
|
|
Long-term
debt
|
406,222
|
|
|
376,905
|
|
Pension
liability
|
45,451
|
|
|
43,555
|
|
Non-pension
post-retirement benefits
|
49,539
|
|
|
49,758
|
|
Deferred income
taxes
|
1,926
|
|
|
1,850
|
|
Other long-term
liabilities
|
12,378
|
|
|
12,885
|
|
Total
liabilities
|
669,092
|
|
|
650,345
|
|
|
|
|
|
Common stock and
capital in excess of par value
|
333,390
|
|
|
333,231
|
|
Retained
deficit
|
(166,446)
|
|
|
(161,165)
|
|
Accumulated other
comprehensive loss
|
(98,889)
|
|
|
(105,172)
|
|
Total shareholders'
equity
|
68,055
|
|
|
66,894
|
|
Total liabilities and
shareholders' equity
|
$
|
737,147
|
|
|
$
|
717,239
|
|
Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
|
|
|
|
Three months ended
March 31,
|
|
2018
|
|
2017
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(2,961)
|
|
|
$
|
(6,570)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
11,879
|
|
|
11,155
|
|
Loss on asset sales
and disposals
|
92
|
|
|
23
|
|
Change in accounts
receivable
|
4,962
|
|
|
1,961
|
|
Change in
inventories
|
(14,311)
|
|
|
(3,827)
|
|
Change in accounts
payable
|
(4,458)
|
|
|
(3,921)
|
|
Accrued interest and
amortization of discounts and finance fees
|
357
|
|
|
378
|
|
Pension &
non-pension post-retirement benefits, net
|
1,975
|
|
|
2,116
|
|
Accrued liabilities
& prepaid expenses
|
(7,464)
|
|
|
(4,545)
|
|
Income
taxes
|
(2,769)
|
|
|
(4,236)
|
|
Share-based
compensation expense
|
290
|
|
|
832
|
|
Other operating
activities
|
(736)
|
|
|
320
|
|
Net cash used in
operating activities
|
(13,144)
|
|
|
(6,314)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
Additions to
property, plant and equipment
|
(11,271)
|
|
|
(11,952)
|
|
Net cash used in
investing activities
|
(11,271)
|
|
|
(11,952)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
Borrowings on
ABL credit facility
|
42,177
|
|
|
—
|
|
Repayments on ABL
credit facility
|
(12,000)
|
|
|
—
|
|
Other
repayments
|
(1,383)
|
|
|
(169)
|
|
Repayments on Term
Loan B
|
(1,100)
|
|
|
(6,100)
|
|
Taxes paid on
distribution of equity awards
|
(203)
|
|
|
(423)
|
|
Dividends
|
(2,595)
|
|
|
(2,577)
|
|
Net cash provided by
(used in) financing activities
|
24,896
|
|
|
(9,269)
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash
|
569
|
|
|
267
|
|
Increase (decrease)
in cash
|
1,050
|
|
|
(27,268)
|
|
|
|
|
|
Cash & cash
equivalents at beginning of period
|
24,696
|
|
|
61,011
|
|
Cash & cash
equivalents at end of period
|
$
|
25,746
|
|
|
$
|
33,743
|
|
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 Loss to Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization (Adjusted
EBITDA)
|
(dollars in
thousands)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2018
|
|
2017
|
Reported net
loss (U.S. GAAP)
|
|
$
|
(2,961)
|
|
|
$
|
(6,570)
|
|
Add:
|
|
|
|
|
Interest
expense
|
|
5,084
|
|
|
4,867
|
|
Benefit
from income taxes
|
|
(2,083)
|
|
|
(3,218)
|
|
Depreciation and amortization
|
|
11,879
|
|
|
11,155
|
|
Adjusted EBITDA
(non-GAAP)
|
|
$
|
11,919
|
|
|
$
|
6,234
|
|
|
|
|
|
|
Net sales
|
|
$
|
181,913
|
|
|
$
|
172,994
|
|
Net loss margin (U.S.
GAAP)
|
|
(1.6)
|
%
|
|
(3.8)
|
%
|
Adjusted EBITDA
margin (non-GAAP)
|
|
6.6
|
%
|
|
3.6
|
%
|
Table
2
|
|
|
|
|
Reconciliation
of Net Cash Used in Operating Activities to Free Cash
Flow
|
(dollars in
thousands)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2018
|
|
2017
|
Net cash used in
operating activities (U.S. GAAP)
|
|
$
|
(13,144)
|
|
|
$
|
(6,314)
|
|
Net cash used in
investing activities (U.S. GAAP)
|
|
(11,271)
|
|
|
(11,952)
|
|
Free Cash Flow
(non-GAAP)
|
|
$
|
(24,415)
|
|
|
$
|
(18,266)
|
|
|
|
|
|
|
Table
3
|
|
|
|
|
|
|
Reconciliation
to Trade Working Capital
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
|
|
|
|
|
|
|
Accounts receivable —
net
|
|
$
|
85,593
|
|
|
$
|
89,997
|
|
|
$
|
83,385
|
|
Inventories —
net
|
|
203,644
|
|
|
187,886
|
|
|
174,405
|
|
Less: Accounts
payable
|
|
73,305
|
|
|
78,346
|
|
|
69,490
|
|
Trade Working Capital
(non-GAAP)
|
|
$
|
215,932
|
|
|
$
|
199,537
|
|
|
$
|
188,300
|
|
Table
4
|
|
|
|
|
Summary
Business Segment Information
|
|
|
|
|
(dollars in
thousands)
(unaudited)
|
|
Three months ended
March 31,
|
Net
Sales:
|
|
2018
|
|
2017
|
|
|
|
|
U.S. & Canada
(1)
|
|
$
|
107,941
|
|
|
$
|
109,329
|
|
Latin America
(2)
|
|
34,333
|
|
|
30,722
|
|
EMEA
(3)
|
|
32,248
|
|
|
25,331
|
|
Other
(4)
|
|
7,391
|
|
|
7,612
|
|
Consolidated
|
|
$
|
181,913
|
|
|
$
|
172,994
|
|
|
|
|
|
|
Segment Earnings
Before Interest & Taxes (Segment EBIT) (5)
:
|
|
|
|
|
U.S. & Canada
(1)
|
|
$
|
4,724
|
|
|
$
|
7,501
|
|
Latin America
(2)
|
|
2,150
|
|
|
(3,079)
|
|
EMEA
(3)
|
|
1,005
|
|
|
(837)
|
|
Other
(4)
|
|
(1,129)
|
|
|
(1,215)
|
|
Segment
EBIT
|
|
$
|
6,750
|
|
|
$
|
2,370
|
|
|
|
|
|
|
Reconciliation of
Segment EBIT to Net Loss:
|
|
|
|
|
Segment
EBIT
|
|
$
|
6,750
|
|
|
$
|
2,370
|
|
Retained corporate
costs (6)
|
|
(6,710)
|
|
|
(7,291)
|
|
Interest
expense
|
|
(5,084)
|
|
|
(4,867)
|
|
Benefit from income
taxes
|
|
2,083
|
|
|
3,218
|
|
Net loss
|
|
$
|
(2,961)
|
|
|
$
|
(6,570)
|
|
|
|
|
|
|
Depreciation &
Amortization:
|
|
|
|
|
U.S. & Canada
(1)
|
|
$
|
3,387
|
|
|
$
|
3,082
|
|
Latin America
(2)
|
|
4,710
|
|
|
4,397
|
|
EMEA
(3)
|
|
2,009
|
|
|
1,844
|
|
Other
(4)
|
|
1,314
|
|
|
1,354
|
|
Corporate
|
|
459
|
|
|
478
|
|
Consolidated
|
|
$
|
11,879
|
|
|
$
|
11,155
|
|
|
|
(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
March 31, 2018
|
|
Year ended
December 31, 2017
|
|
Last twelve
months ended
March 31, 2017
|
|
|
|
Reported net income
(loss) (U.S. GAAP)
|
$
|
(89,759)
|
|
|
$
|
(93,368)
|
|
|
$
|
2,785
|
|
Add:
|
|
|
|
|
|
Interest
expense
|
20,617
|
|
|
20,400
|
|
|
20,511
|
|
Provision (benefit) for income taxes
|
16,933
|
|
|
15,798
|
|
|
14,631
|
|
Depreciation and amortization
|
46,268
|
|
|
45,544
|
|
|
47,560
|
|
Special
items before interest and taxes
|
82,188
|
|
|
82,188
|
|
|
9,536
|
|
Adjusted EBITDA
(non-GAAP)
|
$
|
76,247
|
|
|
$
|
70,562
|
|
|
$
|
95,023
|
|
|
|
|
|
|
|
Reported debt on
balance sheet (U.S. GAAP)
|
$
|
412,399
|
|
|
$
|
384,390
|
|
|
$
|
401,944
|
|
Plus:
Unamortized discount and finance fees
|
3,055
|
|
|
3,295
|
|
|
4,156
|
|
Gross debt
|
415,454
|
|
|
387,685
|
|
|
406,100
|
|
Less:
Cash and cash equivalents
|
25,746
|
|
|
24,696
|
|
|
33,743
|
|
Debt net of
cash
|
$
|
389,708
|
|
|
$
|
362,989
|
|
|
$
|
372,357
|
|
|
|
|
|
|
|
Debt Net of Cash to
Adjusted EBITDA Ratio (non-GAAP)
|
5.1x
|
|
|
5.1 x
|
|
|
3.9 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
six months
ended June 30, 2018
|
|
Outlook for the
year ended
December 31, 2018
|
Net income (loss)
margin (U.S. GAAP)
|
(0.7%) -
0.3%
|
|
0.7% -
1.2%
|
Add:
|
|
|
|
Interest
expense
|
2.8%
|
|
2.7%
|
Provision for income taxes
|
0.4%
|
|
0.9% -
1.4%
|
Depreciation and amortization
|
6.0%
|
|
5.7%
|
Special
items before interest and taxes
|
—%
|
|
—%
|
Adjusted EBITDA
Margin (non-GAAP)
|
8.5% -
9.5%
|
|
10.0% -
11.0%
|
Table
7
|
|
|
Adjusted
SG&A Margin
|
(percent of net
sales)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Outlook for
the
year ended
December 31, 2018
|
|
Year ended
December 31, 2017
|
SG&A margin (U.S.
GAAP)
|
|
~17.0%
|
|
16.0%
|
Deduct special items
in SG&A expenses:
|
|
|
|
|
Reorganization charges
|
|
—%
|
|
(0.3)%
|
Adjusted SG&A
Margin (non-GAAP)
|
|
~17.0%
|
|
15.7%
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/libbey-inc-announces-first-quarter-results-300639980.html
SOURCE Libbey Inc.