TOLEDO, Ohio, Feb. 10 /PRNewswire-FirstCall/ -- -- Fourth Quarter
Net Sales of $208.1 Million, an Increase of 11.5 Percent Compared
to $186.6 million in the Prior-Year Quarter. -- Sales to U.S. and
Canadian Retail Customers Increase 17.8 Percent Compared to
Prior-Year Quarter, Setting an All-Time Record for Any Quarter. --
Full-Year 2009 Sales of $748.6 Million. -- Income From Operations
$19.3 Million in the Fourth Quarter of 2009 Compared to Loss from
Operations of $48.3 Million in the Prior-Year Quarter. --
Normalized EBITDA $29.1 Million in the Fourth Quarter of 2009
Compared to $8.7 Million in the Fourth Quarter of 2008. --
Full-Year 2009 Income from Operations $36.6 Million Compared to
Loss From Operations of $5.5 Million in 2008. -- Full-Year 2009
Normalized EBITDA of $90.1 Million Compared to $85.2 Million in
2008. Libbey Inc. (NYSE:LBY) announced today that sales for the
fourth quarter of 2009 were $208.1 million, compared to $186.6
million in the fourth quarter of 2008. Libbey reported a net loss
of $7.1 million, or $0.45 per diluted share, for the fourth quarter
ended December 31, 2009, compared to a net loss of $68.9 million,
or $4.68 per diluted share, in the prior-year quarter. Fourth
Quarter Results For the quarter-ended December 31, 2009, sales were
$208.1 million, compared to $186.6 million in the year-ago quarter.
Sales of the North American Glass segment were $147.8 million, an
increase of 15.4 percent, compared to $128.0 million in the fourth
quarter of 2008 (see Table 5). Primary contributors to the
increased sales included a 17.8 percent increase in sales to U.S.
and Canadian retail customers, compared to the prior-year quarter,
which represents an all-time record for sales to these customers in
any quarter in the Company's history. Sales to U.S. and Canadian
foodservice customers increased approximately 6.0 percent, sales to
Crisa customers increased 15.2 percent and International sales
increased 24.0 percent. North American Other sales were $20.9
million, compared to $26.0 million in the prior-year quarter, as
shipments of Syracuse China products were off 48.5 percent,
primarily due to the closure of the Syracuse China facility in
April 2009 and the decision to reduce the Syracuse China product
offering. Sales of Traex products were off 20.1 percent versus the
prior year. Sales to World Tableware customers increased 0.5
percent during the quarter. International segment sales were $41.4
million, compared to $33.4 million in the year-ago quarter, as a
result of 41.5 percent sales growth at Crisal in Portugal, 30.7
percent increase in sales at Libbey China and an 18.6 percent
increase in sales to Royal Leerdam customers. The Company reported
income from operations of $19.3 million during the quarter,
compared to a loss from operations of $48.3 million in the year-ago
quarter. Income from operations, excluding special charges (see
Table 1), was $20.2 million in the fourth quarter of 2009, compared
to a loss from operations of $3.2 million during the fourth quarter
of 2008. Factors contributing to the income from operations
improvement were higher sales and higher capacity utilization
partially, offset by higher selling, general and administrative
expenses. Libbey reported earnings before interest and taxes (EBIT)
of $18.0 million, compared to a loss before interest and taxes of
$47.5 million in the year-ago quarter. The improved EBIT was mostly
a result of the increase in income from operations discussed above
and the $45.5 million of special charges (see Table 1) incurred in
2008. Normalized EBIT (see Table 5) was $14.2 million for North
American Glass, compared to a loss of $0.9 million in the year-ago
quarter. North American Other reported normalized EBIT for the
fourth quarter of 2009 of $5.3 million, compared to $1.0 million in
the year-ago quarter. The International segment reported a
normalized loss before interest and taxes of $0.6 million, compared
to a normalized loss before interest and taxes of $2.1 million in
the fourth quarter of 2008. Libbey reported that normalized EBITDA
(see Table 3) was $29.1 million for the fourth quarter, compared to
$8.7 million in the fourth quarter of 2008. Interest expense
decreased by $2.9 million to $14.5 million, compared to $17.4
million in the year-ago period, as the result of lower variable
interest rates and the impact of the debt exchange completed in
October 2009. The effective tax rate was 307.7 percent for the
quarter, compared to a negative 6.1 percent in the year-ago
quarter. The Company's effective tax rate for the quarter was
impacted by a reversal of a $5.3 million benefit from required
intra-period tax allocations between loss from continuing
operations and other comprehensive income in the U.S. The effective
tax rate was also influenced by valuation allowances, changes in
the mix of earnings with differing statutory rates, changes in tax
laws and tax planning structures. Libbey reported a net loss of
$7.1 million, or $0.45 per diluted share, for the fourth quarter
ended December 31, 2009, compared to a net loss of $68.9 million,
or $4.68 per diluted share, in the prior year quarter. Excluding
the special charges of $3.6 million, the net loss was $3.5 million
(see Table 1) and diluted loss per share was $0.22 for the fourth
quarter. Twelve-Month Results For the twelve months ended December
31, 2009, sales decreased 7.6 percent to $748.6 million from $810.2
million in 2008. John F. Meier, chairman and chief executive
officer, commenting on 2009 said, "Our U.S. and Canadian retail
shipments again led the way in 2009, as sales in this channel
increased over seven percent compared to 2008. As a result of
overall increases in demand in the second half of the year,
primarily in North America, we also benefited from increased
capacity utilization in all three North American glass factories
during the second half of 2009. These factors, along with the
continued success of our cost reduction program, allowed us to
generate $90.1 million in normalized EBITDA for the full year."
North American Glass sales decreased 5.7 percent to $522.6 million
from $554.1 million in 2008 (see Table 5). The decrease in sales
was primarily attributable to a decline in sales to foodservice
customers and to Crisa customers. Partially offsetting the decrease
in sales was an increase of more than 7.0 percent in shipments to
U.S. and Canadian retail glassware customers. North American Other
sales decreased 21.6 percent to $87.0 million from $111.0 million
in 2008, as shipments of Syracuse China products declined 37.2
percent, shipments of World Tableware products were off 11.3
percent and Traex sales were 24.2 percent lower than the prior
year. International sales decreased 5.5 percent to $145.0 million
as the result of increased sales at Libbey China of 15.6 percent,
which was more than offset by approximately 6.0 percent lower sales
at both Crisal and Royal Leerdam. Libbey reported income from
operations of $36.6 million during 2009, compared to a loss from
operations of $5.5 million for 2008. Normalized income from
operations, excluding special charges (see Table 2), was $43.4
million for the full year 2009, compared to $39.6 million in 2008.
Primary contributors to the improvement in normalized income from
operations were lower labor costs, lower natural gas and
electricity costs and lower distribution expenses partially offset
by lower sales. Earnings before interest and taxes (EBIT) were
$40.7 million for 2009, compared to a loss before interest and
taxes of $4.4 million in 2008. The improved EBIT was mostly the
result of the increased income from operations. Normalized EBIT
(see Table 2) for 2009 was $47.7 million, compared to $41.1 million
for the full year 2008. Normalized EBIT (see Table 5) was $36.9
million for North American Glass, compared to $30.9 million in
2008. The North American Other segment had normalized EBIT for 2009
of $13.6 million, compared to $10.6 million in 2008. The
International segment reported a normalized loss before interest
and taxes of $2.9 million, compared to a normalized loss before
interest and taxes of $0.3 million in 2008. For the twelve months
ended December 31, 2009, normalized EBITDA (see Table 3) was $90.1
million, compared to $85.2 million during 2008. Interest expense
decreased $3.0 million compared to the year-ago period.
Contributing to the decrease in interest expense were lower
variable interest rates and the impact of the debt exchange
completed in October 2009. The effective tax rate was a negative
10.6 percent for 2009, compared to a negative 8.5 percent in 2008.
The rate was influenced by valuation allowances, changes in the mix
of earnings with differing statutory rates, changes in tax laws and
tax planning structures and changes in accruals related to
uncertain tax positions. The Company recorded a net loss of $28.8
million, or $1.90 per diluted share for 2009, compared to a net
loss of $80.5 million, or $5.48 per diluted share, in the year-ago
period. The Company reported that its normalized net loss per
diluted share for the full year 2009, as detailed in the attached
Table 2, was $1.26 per diluted share. This compares to the
normalized diluted loss per share of $2.40 in 2008. Working Capital
and Liquidity As of December 31, 2009, working capital, defined as
inventories and accounts receivable less accounts payable, declined
by $39.3 million to $167.6 million from $206.9 million at December
31, 2008, as the Company made substantial progress in its efforts
to reduce working capital. Working capital as a percentage of net
sales was 22.4 percent in 2009, which compares to working capital
as a percentage of 2008 net sales of 25.5 percent. Free cash flow,
as detailed in the attached Table 4, was a source of $31.7 million
in the fourth quarter of 2009, compared to a use of $7.0 million in
the fourth quarter of 2008. The primary contributors were lower
capital expenditures, increased accounts payable and lower pension
and postretirement medical payments. For the full year 2009, free
cash flow as detailed in Table 4, was a source of $85.4 million,
compared to a use of $46.6 million during 2008. Lower inventories,
lower capital expenditures and improved operating performance all
contributed. Libbey reported that it had available capacity of
$79.2 million under its Asset Backed Loan (ABL) credit facility as
of December 31, 2009, and cash on hand of $55.1 million. This
compares to availability of $44.6 million and cash on hand of $13.3
million at December 31, 2008. Retail Market Share Continues to
Increase John F. Meier, chairman and chief executive officer said,
"We were encouraged by the improvements we saw in the foodservice
channel and by the record setting sales in the retail channel in
the fourth quarter. We were also pleased that our retail sales in
the U.S. and Canada increased over 7.0 percent for the full year
2009, as we increased our market share in the U.S. from 40.6
percent in 2008 to 42.1 percent in 2009." Webcast Information
Libbey will hold a conference call for investors on Wednesday,
February 10, 2010, at 11 a.m. Eastern Standard Time. The conference
call will be simulcast live on the Internet and is accessible from
the Investor Relations section of http://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. A replay
will be available for 30 days after the conclusion of the call.
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 only
reflect 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. 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 16, 2009.
Important factors potentially affecting performance include but are
not limited to increased competition from foreign suppliers from
such statements, and that investors should not place undue reliance
on such endeavoring to sell glass tableware in the United States
and Mexico; the impact of lower duties for imported products;
global economic conditions and the related impact on consumer
spending levels; major slowdowns in the retail, travel or
entertainment industries in the United States, Canada, Mexico,
Western Europe and Asia, caused by terrorist attacks or otherwise;
significant increases in per-unit costs for natural gas,
electricity, corrugated packaging, and other purchased materials;
higher indebtedness related to the Crisa acquisition; higher
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 high inflation in Mexico and exchange
rate changes to the value of the Mexican peso and the earnings and
cash flow of Crisa, expressed under U.S. GAAP; the inability to
achieve savings and profit improvements at targeted levels in the
Company's operations or within the intended time periods; and
whether the Company completes any significant acquisition and
whether such acquisitions can operate profitably. 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.: -- is
the largest manufacturer of glass tableware in the western
hemisphere and one of the largest glass tableware manufacturers in
the world; -- is expanding its international presence with
facilities in China, Mexico, the Netherlands and Portugal; -- is
the leading manufacturer of tabletop products for the U.S.
foodservice industry; and -- supplies products to foodservice,
retail, industrial and business-to-business customers in over 100
countries. Based in Toledo, Ohio, since 1888, Libbey operates glass
tableware manufacturing plants in the United States in Louisiana
and Ohio, as well as in Mexico, China, Portugal and the
Netherlands. Its Crisa subsidiary, located in Monterrey, Mexico, is
the leading producer of glass tableware in Mexico and Latin
America. Its Royal Leerdam subsidiary, located in Leerdam,
Netherlands, is among the world leaders in producing and selling
glass stemware to retail, foodservice and industrial clients. Its
Crisal subsidiary, located in Portugal, provides an expanded
presence in Europe. Its Syracuse China subsidiary designs and
distributes an extensive line of high-quality ceramic dinnerware,
principally for foodservice establishments in the United States.
Its World Tableware subsidiary imports and sells a full-line of
metal flatware and holloware and an assortment of ceramic
dinnerware and other tabletop items principally for foodservice
establishments in the United States. Its Traex subsidiary, located
in Wisconsin, designs, manufactures and distributes an extensive
line of plastic items for the foodservice industry. In 2009, Libbey
Inc.'s net sales totaled $748.6 million. LIBBEY INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except
per-share amounts) (unaudited) Three Months Ended December 31,
------------------ 2009 2008 ---- ---- Net sales $208,078 $186,567
Freight billed to customers 442 475 --- --- Total revenues 208,520
187,042 Cost of sales (1) 163,334 188,144 ------- ------- Gross
profit 45,186 (1,102) Selling, general and administrative expenses
(1) 25,201 20,764 Special charges (1) 657 26,434 --- ------ Income
(loss) from operations 19,328 (48,300) Other (expense) income (1)
(1,371) 780 ------ --- Earnings (loss) before interest and income
taxes 17,957 (47,520) Interest expense (1) 14,543 17,440 ------
------ Income (loss) before income taxes 3,414 (64,960) Provision
for income taxes 10,506 3,949 ------ ----- Net loss $(7,092)
$(68,909) ======= ======== Net loss per share: Basic $(0.45)
$(4.68) ====== ====== Diluted $(0.45) $(4.68) ====== ======
Weighted average shares: Outstanding 15,810 14,730 ====== ======
Diluted 15,810 14,730 ====== ====== (1) Refer to Table 1 for
Special Charges detail. LIBBEY INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Dollars in thousands, except per-share
amounts) (unaudited) Twelve Months Ended December 31,
------------------ 2009 2008 ---- ---- Net sales $748,635 $810,207
Freight billed to customers 1,605 2,422 ----- ----- Total revenues
750,240 812,629 Cost of sales (1) 617,095 703,292 ------- -------
Gross profit 133,145 109,337 Selling, general and administrative
expenses (1) 94,900 88,451 Special charges (1) 1,631 26,434 -----
------ Income (loss) from operations 36,614 (5,548) Other income
(1) 4,053 1,119 ----- ----- Earnings (loss) before interest and
income taxes 40,667 (4,429) Interest expense (1) 66,705 69,720
------ ------ Loss before income taxes (26,038) (74,149) Provision
for income taxes 2,750 6,314 ----- ----- Net loss $(28,788)
$(80,463) ======== ======== Net loss per share: Basic $(1.90)
$(5.48) ====== ====== Diluted $(1.90) $(5.48) ====== ======
Weighted average shares: Outstanding 15,149 14,672 ====== ======
Diluted 15,149 14,672 ====== ====== (1) Refer to Table 1 for
Special Charges detail. LIBBEY INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (Dollars in thousands) December 31, 2009 December 31, 2008
----------------- ----------------- (unaudited) ASSETS Cash $55,089
$13,304 Accounts receivable - net 82,424 76,072 Inventories - net
144,015 185,242 Other current assets 14,761 17,167 ------ ------
Total current assets 296,289 291,785 Pension asset 9,454 9,351
Goodwill and purchased intangibles - net 193,181 192,857 Property,
plant and equipment - net 290,013 314,847 Other assets 8,854 12,714
----- ------ Total assets $797,791 $821,554 ======== ========
LIABILITIES AND SHAREHOLDERS' DEFICIT Notes payable $672 $3,284
Accounts payable 58,838 54,428 Accrued liabilities 69,763 62,272
Pension liability (current portion) 1,984 1,778 Nonpension
postretirement benefits (current portion) 4,363 4,684 Other current
liabilities 4,362 23,463 Long-term debt due within one year 9,843
1,117 ----- ----- Total current liabilities 149,825 151,026
Long-term debt 504,724 545,856 Pension liability 119,727 109,505
Nonpension postretirement benefits 64,780 57,197 Other liabilities
25,642 15,859 ------ ------ Total liabilities 864,698 879,443
Common stock, treasury stock, capital in excess of par value and
warrants 254,161 203,051 Retained deficit (205,344) (145,154)
Accumulated other comprehensive loss (115,724) (115,786) --------
-------- Total shareholders' deficit (66,907) (57,889) -------
------- Total liabilities and shareholders' deficit $797,791
$821,554 ======== ======== LIBBEY INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (Dollars in thousands) (unaudited) Three
Months Ended December 31, 2009 2008 ---- ---- Operating activities:
Net loss $(7,092) $(68,909) Adjustments to reconcile net loss to
net cash provided by operating activities: Depreciation and
amortization 10,291 10,997 Loss on asset sales 214 66 Change in
accounts receivable 8,303 26,869 Change in inventories 8,784 8,729
Change in accounts payable 7,058 (3,853) Non-cash restructuring
charges 109 28,865 Non-cash impairment charges - 17,461 Pay-in-kind
interest - 11,033 Pension & nonpension postretirement 2,619
(4,622) Accrued interest and amortization of discounts, warrants
and finance fees (2,053) (12,544) Accrued liabilities & prepaid
expenses (6,360) (9,911) Income taxes 9,406 5,614 Other operating
activities 5,140 (1,085) ----- ------ Net cash provided by
operating activities 36,419 8,710 Investing activities: Additions
to property, plant and equipment (4,718) (15,715) Proceeds from
asset sales and other 5 - --- --- Net cash used in investing
activities (4,713) (15,715) Financing activities: Borrowings -
15,888 Repayments (3,121) (1,847) Debt issuance costs (4,171) -
Dividends - (368) --- ---- Net cash (used in) provided by financing
activities (7,292) 13,673 Effect of exchange rate fluctuations on
cash 27 (2,083) --- ------ Increase in cash 24,441 4,585 Cash at
beginning of period 30,648 8,719 ------ ----- Cash at end of period
$55,089 $13,304 ======= ======= LIBBEY INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (Dollars in thousands) (unaudited) Twelve
Months Ended December 31, 2009 2008 ---- ---- Operating activities:
Net loss $(28,788) $(80,463) Adjustments to reconcile net loss to
net cash provided by (used in) operating activities: Depreciation
and amortization 43,166 44,430 Loss on asset sales 323 101 Change
in accounts receivable (6,430) 16,518 Change in inventories 40,834
(2,027) Change in accounts payable 3,980 (19,460) Non-cash
restructuring charges (1,728) 28,865 Non-cash impairment charges -
17,461 Pay-in-kind interest 11,916 21,249 Pension & nonpension
postretirement 5,331 (18,604) Payable to Vitro - (19,575) Accrued
interest and amortization of discounts, warrants and finance fees
12,945 4,165 Accrued liabilities & prepaid expenses 14,768
(6,634) Income taxes (93) 9,275 Other operating activities 5,924
3,659 ----- ----- Net cash provided by (used in) operating
activities 102,148 (1,040) Investing activities: Additions to
property, plant and equipment (17,005) (45,717) Proceeds from asset
sales and other 265 117 --- --- Net cash used in investing
activities (16,740) (45,600) Financing activities: Borrowings -
30,601 Repayments (39,394) (3,307) Debt issuance costs (4,171) -
Dividends - (1,466) --- ------ Net cash (used in) provided by
financing activities (43,565) 25,828 Effect of exchange rate
fluctuations on cash (58) (2,423) --- ------ Increase (decrease) in
cash 41,785 (23,235) Cash at beginning of period 13,304 36,539
------ ------ Cash at end of period $55,089 $13,304 ======= =======
In accordance with the SEC's Regulation G, tables 1, 2, 3 and 4
provide non-GAAP measures used in this earnings release and a
reconciliation to the most closely related Generally Accepted
Accounting Principle (GAAP) measure. Libbey believes that providing
supplemental non-GAAP financial information is useful to investors
in understanding Libbey's core business and trends. In addition, it
is the basis on which Libbey's management assesses performance.
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 GAAP. Table 1 Reconciliation of "As Reported"
results to "Normalized" results - Quarter (Dollars in thousands,
except per-share amounts) (unaudited) Three Months Ended December
31, ------------------------------- 2009 ---- As Reported Special
Charges Normalized ----------- --------------- ---------- Net sales
$208,078 $- $208,078 Freight billed to customers 442 - 442 --- ---
--- Total revenues 208,520 - 208,520 Cost of sales 163,334 (23)
163,357 ------- --- ------- Gross profit 45,186 23 45,163 Selling,
general and administrative expenses 25,201 235 24,966 Special
charges 657 657 - --- --- --- Income (loss) from operations 19,328
(869) 20,197 Other (expense) income (1,371) (19) (1,352) ------ ---
------ Earnings (loss) before interest and income taxes 17,957
(888) 18,845 Interest expense 14,543 2,700 11,843 ------ -----
------ Income (loss) before income taxes 3,414 (3,588) 7,002
Provision for (benefit from) income taxes 10,506 - 10,506 ------
--- ------ Net loss $(7,092) $(3,588) $(3,504) ======= =======
======= Net loss per share: Basic $(0.45) $(0.23) $(0.22) ======
====== ====== Diluted $(0.45) $(0.23) $(0.22) ====== ====== ======
Weighted average shares: Outstanding 15,810 ====== Diluted 15,810
====== Three Months Ended December 31,
------------------------------- 2008 ---- As Reported Special
Charges Normalized ----------- --------------- ---------- Net sales
$186,567 $- $186,567 Freight billed to customers 475 - 475 --- ---
--- Total revenues 187,042 - 187,042 Cost of sales 188,144 18,681
169,463 ------- ------ ------- Gross profit (1,102) (18,681) 17,579
Selling, general and administrative expenses 20,764 - 20,764
Special charges 26,434 26,434 - ------ ------ --- Income (loss)
from operations (48,300) (45,115) (3,185) Other (expense) income
780 (383) 1,163 --- ---- ----- Earnings (loss) before interest and
income taxes (47,520) (45,498) (2,022) Interest expense 17,440 -
17,440 ------ --- ------ Income (loss) before income taxes (64,960)
(45,498) (19,462) Provision for (benefit from) income taxes 3,949
(246) 4,195 ----- ---- ----- Net loss $(68,909) $(45,252) $(23,657)
======== ======== ======== Net loss per share: Basic $(4.68)
$(3.07) $(1.61) ====== ====== ====== Diluted $(4.68) $(3.07)
$(1.61) ====== ====== ====== Weighted average shares: Outstanding
14,730 ====== Diluted 14,730 ====== Three Months Ended December 31,
2009 ------------------------------------ Pension Total Settlement
Restructuring Finance Special Charge Charges Fees Charges Special
Charges Detail: ----------------------- Cost of sales $- $(23) $-
$(23) SG&A 235 - - 235 Special charges - 657 - 657 Other
expense - 19 - 19 Interest expense - - 2,700 2,700 ---- ---- ------
------ Total $235 $653 $2,700 $3,588 ==== ==== ====== ====== Three
Months Ended December 31, 2008 ------------------------------------
Total Impairment Restructuring Special Special Charges Charges
Charges Charges Detail: --------------- Cost of sales $- $18,681
$18,681 SG&A - - - Special charges 11,890 14,544 26,434 Other
expense - 383 383 Interest expense - - - ------- ------- -------
Total $11,890 $33,608 $45,498 ======= ======= ======= Restructuring
charges are related to the closure of our Syracuse, New York,
manufacturing facility and our Mira Loma, California, distribution
center. The pension settlement charges were triggered by excess
lump sum distributions taken by employees, which required us to
record unrecognized gains and losses in our pension plan accounts.
Impairment charges are related to goodwill and intangible assets at
our Crisal and Royal Leerdam locations and unutilized fixed assets
at our North American Glass segment. Interest expense includes
finance fees related to the PIK Note exchange transaction. Table 2
Reconciliation of "As Reported" results to "Normalized" results -
Year (Dollars in thousands, except per-share amounts) (unaudited)
Twelve Months Ended December 31, --------------------------------
2009 ---- As Reported Special Charges Normalized -----------
--------------- ---------- Net sales $748,635 $- $748,635 Freight
billed to customers 1,605 - 1,605 ----- --- ----- Total revenues
750,240 - 750,240 Cost of sales 617,095 1,960 615,135 ------- -----
------- Gross profit 133,145 (1,960) 135,105 Selling, general and
administrative expenses 94,900 3,190 91,710 Special charges 1,631
1,631 - ----- ----- --- Income (loss) from operations 36,614
(6,781) 43,395 Other income (expense) 4,053 (232) 4,285 ----- ----
----- Earnings (loss) before interest and income taxes 40,667
(7,013) 47,680 Interest expense 66,705 2,700 64,005 ------ -----
------ Loss before income taxes (26,038) (9,713) (16,325) Provision
for (benefit from) income taxes 2,750 - 2,750 ----- --- ----- Net
loss $(28,788) $(9,713) $(19,075) ======== ======= ======== Net
loss per share: Basic $(1.90) $(0.64) $(1.26) ====== ====== ======
Diluted $(1.90) $(0.64) $(1.26) ====== ====== ====== Weighted
average shares: Outstanding 15,149 ====== Diluted 15,149 ======
Twelve Months Ended December 31, --------------------------------
2008 ---- As Reported Special Charges Normalized -----------
--------------- ---------- Net sales $810,207 $- $810,207 Freight
billed to customers 2,422 - 2,422 ----- --- ----- Total revenues
812,629 - 812,629 Cost of sales 703,292 18,681 684,611 -------
------ ------- Gross profit 109,337 (18,681) 128,018 Selling,
general and administrative expenses 88,451 - 88,451 Special charges
26,434 26,434 - ------ ------ --- Income (loss) from operations
(5,548) (45,115) 39,567 Other income (expense) 1,119 (383) 1,502
----- ---- ----- Earnings (loss) before interest and income taxes
(4,429) (45,498) 41,069 Interest expense 69,720 - 69,720 ------ ---
------ Loss before income taxes (74,149) (45,498) (28,651)
Provision for (benefit from) income taxes 6,314 (246) 6,560 -----
---- ----- Net loss $(80,463) $(45,252) $(35,211) ======== ========
======== Net loss per share: Basic $(5.48) $(3.08) $(2.40) ======
====== ====== Diluted $(5.48) $(3.08) $(2.40) ====== ====== ======
Weighted average shares: Outstanding 14,672 ====== Diluted 14,672
====== Twelve Months Ended December 31, 2009
------------------------------------- Pension Total Settlement
Restructuring Finance Special Charge Charges Fees Charges Special
Charges Detail: ----------------------- Cost of sales $- $1,960 $-
$1,960 SG&A 3,190 - - 3,190 Special charges - 1,631 - 1,631
Other expense - 232 - 232 Interest expense - - 2,700 2,700 ------
------ ------ ------ Total $3,190 $3,823 $2,700 $9,713 ======
====== ====== ====== Twelve Months Ended December 31, 2008
------------------------------------- Total Impairment
Restructuring Special Special Charges Detail: Charges Charges
Charges ----------------------- Cost of sales $- $18,681 $18,681
SG&A - - - Special charges 11,890 14,544 26,434 Other expense -
383 383 Interest expense - - - ------- ------- ------- Total
$11,890 $33,608 $45,498 ======= ======= ======= Restructuring
charges are related to the closure of our Syracuse, New York,
manufacturing facility and our Mira Loma, California, distribution
center. The pension settlement charges were triggered by excess
lump sum distributions taken by employees, which required us to
record unrecognized gains and losses in our pension plan accounts.
Impairment charges are related to goodwill and intangible assets at
our Crisal and Royal Leerdam locations and unutilized fixed assets
at our North American Glass segment. Interest expense includes
finance fees related to the PIK Note exchange transaction. Table 3
Reconciliation of Net Loss to Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) (Dollars in thousands) Three
Months Twelve Months Ended December 31, ended December 31, 2009
2008 2009 2008 ---- ---- ---- ---- Reported net loss $(7,092)
$(68,909) $(28,788) $(80,463) Add: Interest expense 14,543 17,440
66,705 69,720 Provision for income taxes 10,506 3,949 2,750 6,314
Depreciation and amortization 10,291 10,997 43,166 44,430 ------
------ ------ ------ EBITDA 28,248 (36,523) 83,833 40,001 Add:
Special Charges before interest and taxes 888 45,498 7,013 45,498
Less: Depreciation expense included in Special Charges and also in
Depreciation and Amortization above - (261) (705) (261) -----
------ ------- ------- Normalized EBITDA $29,136 $8,714 $90,141
$85,238 ======= ====== ======= ======= Table 4 Reconciliation of
Net Cash provided by (used in) Operating Activities to Free Cash
Flow (Dollars in thousands) Three Months Twelve Months Ended
December 31, ended December 31, 2009 2008 2009 2008 ---- ---- ----
---- Net cash provided by (used in) operating activities $36,419
$8,710 $102,148 $(1,040) Capital expenditures (4,718) (15,715)
(17,005) (45,717) Proceeds from asset sales and other 5 - 265 117
--- --- --- --- Free Cash Flow $31,706 $(7,005) $85,408 $(46,640)
======= ======= ======= ======== Table 5 Summary Business Segment
information (Dollars in thousands) Three months Twelve months ended
December 31, ended December 31, --------------- ---------------
2009 2008 2009 2008 ---- ---- ---- ---- Net Sales: North American
Glass $147,772 $128,008 $522,575 $554,128 North American Other
20,861 25,987 87,041 111,029 International 41,360 33,366 145,023
153,532 Eliminations (1,915) (794) (6,004) (8,482) ------ ----
------ ------ Consolidated Net Sales $208,078 $186,567 $748,635
$810,207 ======== ======== ======== ======== Normalized Earnings
before Interest & Taxes (EBIT): North American Glass $14,168
$(852) $36,931 $30,852 North American Other 5,259 965 13,611 10,555
International (582) (2,135) (2,862) (338) ---- ------ ------ ----
Consolidated Normalized EBIT $18,845 $(2,022) $47,680 $41,069
======= ======= ======= ======= Normalized Depreciation &
Amortization: (1) North American Glass $5,949 $6,399 $24,806
$26,004 North American Other 222 651 1,347 2,862 International
4,120 3,686 16,308 15,303 ----- ----- ------ ------ Consolidated
Normalized Depreciation & Amortization $10,291 $10,736 $42,461
$44,169 ======= ======= ======= ======= (1) Normalized Depreciation
& Amortization excludes $705 for YTD 2009 and $261 for QTD and
YTD 2008 of depreciation expense that is included in Special
Charges below. Special Charges: North American Glass $2,867 $5,356
$5,903 $5,356 North American Other 721 28,252 3,810 28,252
International - 11,890 - 11,890 ------ ------ ------ ------
Consolidated Special Charges $3,588 $45,498 $9,713 $45,498 ======
======= ====== ======= Reconciliation of Normalized EBIT to Net
Loss: Segment Normalized EBIT $18,845 $(2,022) $47,680 $41,069
Special Charges before interest and taxes (888) (45,498) (7,013)
(45,498) Interest Expense (14,543) (17,440) (66,705) (69,720)
Income Taxes (10,506) (3,949) (2,750) (6,314) ------- ------ ------
------ Net Loss $(7,092) $(68,909) $(28,788) $(80,463) =======
======== ======== ======== Note: North American Glass-includes
sales of glass tableware from subsidiaries throughout the United
States, Canada and Mexico. North American Other-includes sales of
ceramic dinnerware, metal tableware, holloware and serveware and
plastic items. International-includes worldwide sales of glass
tableware from subsidiaries outside the United States, Canada and
Mexico. DATASOURCE: Libbey Inc. CONTACT: Kenneth Boerger,
VP/Treasurer, +1-419-325-2279, Greg Geswein, VP/Chief Financial
Officer, +1-419-325-2451, both of Libbey Inc. Web Site:
http://www.libbey.com/
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