2014

BWAY Intermediate Company Reports Sales And Earnings For The Third Quarter Of Fiscal 2012

ATLANTA, Aug. 13, 2012 /PRNewswire/ -- BWAY Intermediate Company, a leading North American supplier of general line rigid containers, today reported net sales for the third quarter ended June 30, 2012 of $329.7 million compared to $328.5 million for the same quarter last year. Higher raw material driven selling prices were essentially offset by an overall 2.8% decrease in volume during the quarter. Net income for the quarter ended June 30, 2012 was $8.9 million compared to $5.3 million for the third quarter last year.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and certain other items noted in the accompanying GAAP reconciliation) for the third quarter of fiscal 2012 of $49.0 million compared to $47.2 million for the same quarter of fiscal 2011. The increase was primarily attributable to improved manufacturing efficiencies and cost management, effective pass-through of raw material price changes, and synergies realized from acquisitions. Improvements were partially offset by the effect of lower volume.

Selling and administrative expense for the quarter was $6.6 million compared to $6.1 million for the third quarter of fiscal 2011. The increase is largely attributable to higher bonus expense based on financial performance.

Third quarter interest expense was $11.9 million for fiscal 2012, compared to $12.6 million for the same period last year. The decrease is primarily attributable to a lower average debt balance resulting from payments made on credit agreement term loan debt.

Other expense was $0.8 million for the third quarter, which included $1.1 million of foreign exchange loss, compared to $0.4 million for the same quarter last year including $0.2 million of foreign exchange.

Business Segments

Metal Packaging

Sales for the Company's metal packaging segment were $201.0 million for the third quarter of fiscal 2012, compared to $194.3 million in the year-earlier period. The increase in sales was driven largely by product mix and higher selling prices driven in part by changes in raw material costs, partially offset by lower volume which decreased approximately 1.2%.

Metal packaging segment earnings (excluding depreciation and amortization) were $44.7 million for the third quarter of fiscal 2012, compared to $42.8 million for the same quarter of fiscal 2011. The increase in earnings was primarily attributable to improved manufacturing efficiencies, acquisition synergies, and a favorable effect from passing-through higher raw material cost, partially offset by the impact of lower volume.

Plastic Packaging

Sales for the Company's plastic packaging segment were $128.7 million for the third quarter of fiscal 2012, compared to $134.2 million for the year-earlier period. The decrease resulted in part from lower volume which declined by 5.1% compared to the third quarter last year, partially offset by higher selling prices driven by higher raw material costs.

Plastic packaging segment earnings (excluding depreciation and amortization) for the quarter were $7.2 million, compared to $7.0 million for the third quarter of fiscal 2011. The increase resulted from favorable timing and effect of raw material price changes and the associated selling price pass-through which was largely offset by the effect of lower volume.

Corporate

Corporate undistributed expenses were $3.7 million for the quarter compared to $2.7 million for the third quarter last year. The increase is largely due to higher bonus expense.

Cash and cash equivalents decreased from $29.1 million at the beginning of the third quarter to $13.3 million at the end of the quarter. The decrease resulted from a $37.0 million repayment of term loan debt during the quarter, partially offset by cash provided from operating activities during the quarter. The $37.0 million term loan repayment included a $12.0 million mandatory payment related to the previously announced sale of the Company's blow molded plastic bottle business, and a $25.0 million voluntary payment.

Capital expenditures for the third quarter of fiscal 2012 were $7.8 million, compared to $10.8 million for the third quarter last year. The decrease was primarily due to a lower level of spending on the Company's SAP implementation initiative and general timing of capital projects.

About BWAY Intermediate Company

BWAY Intermediate Company, through its primary operating subsidiary, BWAY Corporation, is a leading North American supplier of general line rigid containers. The Company operates 22 plants throughout the United States and Canada serving industry leading customers on a national basis.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these statements. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. As you read and consider this document, you should understand that these statements are not guarantees of performance or results. Many factors could affect our actual performance and results and could cause actual results to differ materially from those expressed in the forward-looking statements. Please refer to our filings with the United States Securities and Exchange Commission, for a discussion of other factors that may affect future performance or results.

In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this document might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

The Company provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). Presentation of non-GAAP financial measures such as, but not limited to "EBITDA," "adjusted EBITDA," "EBIT," "adjusted EBIT," "gross margin (excluding depreciation and amortization)" and "adjusted net income (loss)," provide investors with an alternative method for assessing the Company's operating results in a manner that enables them to more thoroughly evaluate the Company's performance. These non-GAAP financial measures provide a baseline for assessing the Company's future earnings expectations. The Company's management uses these non-GAAP financial measures for the same purpose. The non-GAAP financial measures included in this news release are provided to give investors access to the types of measures that the Company uses in analyzing its results.

The Company's calculation of non-GAAP financial measures is not necessarily comparable to similarly titled measures reported by other companies. These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Schedules that reconcile these non-GAAP financial measures to GAAP financial measures are included with this news release.

<Financial Information to Follow>

BWAY Intermediate Company, Inc. and Subsidiaries





Summary Consolidated Financial Data (Unaudited)





(Amounts in millions)







Three Months Ended


 Nine Months Ended 



June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Statements of Operations:









Net sales


$          329.7


$          328.5


$          887.8


$          871.5

Cost of products sold (excluding depr. and amort.)


274.9


275.3


750.5


751.2

Gross margin (excluding depr. and amort.)


54.8


53.2


137.3


120.3

Other costs and expenses









    Depreciation and amortization


21.7


22.7


64.9


66.4

    Selling and administrative


6.6


6.1


18.4


16.1

    Restructuring


0.1


0.6


1.2


1.4

    Interest 


11.9


12.6


37.0


40.2

 Business acquisition costs


0.2


0.4


0.2


1.0

    Gain on disposition of equipment


(0.1)


-


(9.9)


-

    Other


0.8


0.4


(1.0)


(1.1)

          Total other costs and expenses


41.2


42.8


110.8


124.0










Income (loss) before income taxes 


13.6


10.4


26.5


(3.7)

Provision for income taxes


4.7


5.1


8.6


0.2

Net income (loss)


$              8.9


$              5.3


$            17.9


$             (3.9)










Reconciliation of Net Income (Loss) to Adjusted EBITDA:









Net income (loss)


$              8.9


$              5.3


$            17.9


$             (3.9)

Interest 


11.9


12.6


37.0


40.2

Provision for income taxes


4.7


5.1


8.6


0.2

Depreciation and amortization


21.7


22.7


64.9


66.4

    EBITDA


$            47.2


$            45.7


$          128.4


$          102.9










Adjustments:









Restructuring 


0.1


0.6


1.2


1.4

Business acquisition costs


0.2


0.4


0.2


1.0

Gain on disposal of bottle equipment


0.1


-


(9.3)


-

Stock based compensation


0.4


0.3


1.1


1.0

Debt issuance costs


-


-


-


0.4

Gain on derivatives


(0.1)


-


(0.2)


(0.1)

Foreign exchange


1.1


0.2


(0.2)


(2.0)

    Adjusted EBITDA


$            49.0


$            47.2


$          121.2


$          104.6










Business Segment Information:









Net sales









     Metal packaging


$          201.0


$          194.3


$          543.6


$          519.9

     Plastic packaging


128.7


134.2


344.2


351.6

     Consolidated net sales


329.7


328.5


887.8


871.5










Income (loss) before income taxes









     Segment earnings (excluding depr. and amort.)









        Metal packaging


44.7


42.8


111.4


98.6

        Plastic packaging


7.2


7.0


17.4


14.1

        Total segment earnings (excluding depr. and amort.)


51.9


49.8


128.8


112.7










     Depreciation and amortization









        Metal packaging


12.1


12.6


36.2


37.7

        Plastic packaging


8.5


9.4


25.7


26.7

        Total segment depreciation and amortization


20.6


22.0


61.9


64.4

        Corporate depreciation and amortization


1.1


0.7


3.0


2.0

        Consolidated depreciation and amortization


21.7


22.7


64.9


66.4










     Corporate and other expenses









        Corporate undistributed expense


3.7


2.7


9.9


8.5

        Restructuring


0.1


0.6


1.2


1.4

        Interest


11.9


12.6


37.0


40.2

        Business acquisition costs


0.2


0.4


0.2


1.0

        Gain on disposition of equipment


(0.1)


-


(9.9)


-

        Other income


0.8


0.4


(1.0)


(1.1)










Consolidated income (loss) before income taxes


$            13.6


$            10.4


$            26.5


$             (3.7)




















BWAY Intermediate Company, Inc. and Subsidiaries









Summary Consolidated Financial Data (Unaudited)









(Amounts in millions)



























Condensed Balance Sheets:






June 30, 2012


Sept. 30, 2011

Assets









     Cash and cash equivalents






$            13.3


$            82.5

     Accounts receivable, net of allow. for doubtful accts.






158.9


116.8

     Inventories, net






118.5


117.2

     Other current assets






27.8


26.4

        Total current assets






318.5


342.9










     Property, plant and equipment, net






165.8


175.8

     Goodwill and other intangible assets, net






653.5


687.3

     Other assets






28.3


31.8

       Total Assets






$       1,166.1


$       1,237.8










Liabilities and Stockholders Equity









     Accounts payable






$          110.6


$          125.9

     Other current liabilities






43.6


50.3

     Current portion of long-term debt






-


5.1

        Total current liabilities






154.2


181.3










     Long-term debt (excluding current portion)






637.6


704.1

     Other long-term liabilities






196.2


197.4

     Stockholders equity






178.1


155.0

        Total Liabilities and Stockholders Equity






$       1,166.1


$       1,237.8










 

SOURCE BWAY Intermediate Company




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