Coveris Reports Second Quarter 2015 Financial Results

- Reports shipment volume increases of 2% versus the prior year, 3% in Flexibles and 1% in Rigid.

- Reports combined gross margin of 16%, an improvement of 50 basis points.

- Combined Adjusted EBITDA of $90 million. Up 2.7% versus prior year, when adjusted for currency and resin impacts.

Aug 12, 2015, 15:43 ET from Coveris Holdings S.A.

CHICAGO, Aug. 12, 2015 /PRNewswire/ -- Coveris Holdings S.A. reported second quarter 2015 combined net sales of $680 million.  Combined net sales for the second quarter of 2014 were $784 million.  Excluding the impact of foreign exchange, pass-through of lower resin costs, and two facilities that were exited in 2014, net sales for the second quarter of 2015 were up slightly from 2014.  Combined Adjusted EBITDA for the second quarter was $90 million.  Excluding currency, resin and exited facilities, combined adjusted EBITDA was $102 million

"I am pleased with the progress we are making on the implementation of our strategic initiatives via the Coveris Business System," said Gary Masse, President and Chief Executive Officer.  "During the second quarter, we have been able to expand our geographic reach through two strategic acquisitions, while continuing to focus on delivering operational results and growing our volumes."

Please see our Combined Adjusted EBITDA Reconciliation attached to this press release.  Additional financial information may be found on www.coveris.com under the Investor Relations section.

EARNINGS CALL
A conference call hosted by management to discuss these financial results will be held on August 13, at 10:00 am, Eastern.  The conference call number is 877-407-8031 (domestic) or 201-689-8031 (international).  A replay of the call will be available after 1:30 pm, Eastern on August 13 until August 27, by dialing 877-660-6853 (domestic) or 201-612-7415 (international) with the conference ID of 13616403.

ABOUT COVERIS™
As a leading international manufacturing company, Coveris is dedicated to providing solutions that enhance the safety, quality and convenience of products we use every day. In partnership with the most respected brands in the world, Coveris develops vital products that protect everything from the food we eat, to medical supplies, to the touch screen device in our pockets, contributing to the lives of millions every day.

Coveris is an affiliated portfolio company of Sun Capital Partners, Inc.
www.coveris.com

FORWARD-LOOKING STATEMENTS:
Statements in this release that are not historical are "forward-looking statements." Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business. You are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect Coveris' operations, markets, products, services, prices and other factors. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors.  In addition, any forward‑looking statements are made only as of the date of this release, and Coveris does not intend and does not assume any obligation to update any statements set forth in this release.

     


COVERIS HOLDINGS S.A.


RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA


(Expressed in millions of U.S. dollars)




















Three Months


Three Months


Six Months


Six Months




Ended


Ended


Ended


Ended




30-Jun-15


30-Jun-14


30-Jun-15


30-Jun-14











U.S. GAAP Net income (loss)


$        (10.894)


$          (5.139)


$        (31.173)


$        (20.017)


Interest expense, net


$           30.465


$           32.637


$           61.697


$           64.180


(Benefit) provision for income taxes


$           (1.672)


$            4.943


$           (6.789)


$            3.203


Depreciation and amortization


$           35.677


$           39.520


$           71.576


$           78.038

Non-GAAP EBITDA


$           53.576


$         71.961


$         95.311


$       125.404












Acquisitions(a):










  Unadjusted St. Neots EBITDA prior to Fund V acquisition


$                   -


$            1.582


$                   -


$            3.037


  Unadjusted Learoyd EBITDA prior to Fund V acquisition


$                   -


$            1.023


$                   -


$            1.732


  Unadjusted Elldex EBITDA prior to Fund V acquisition


$          (0.868)


$            0.544


$           (0.534)


$            1.082


  Unadjusted Olefinas EBITDA prior to Fund V acquisition


$            4.311


$            3.773


$            8.266


$            8.508


Non-GAAP Combined EBITDA


$         57.019


$         78.883


$       103.043


$       139.763












Special Items:










PPA Adjustments and FX translation


$           11.217


$           (3.884)


$           26.439


$           (2.023)


Restructuring and related relocation costs(b)


$            9.735


$            8.106


$           15.886


$           16.442


Management fees and expenses


$            2.218


$            2.272


$            4.618


$            5.202


Transaction related expenses(c)


$            3.430


$            2.672


$            3.824


$            3.408


Business improvement consulting cost


$            5.417


$            2.948


$           11.134


$            6.183


(Gain) loss on disposal of assets


$            0.449


$            0.184


$           (1.022)


$            0.892


Pension revaluation


$            0.210


$            0.408


$            0.423


$            0.730


Other expenses(d)


$            0.194


$            8.088


$            3.563


$           10.979

Non-GAAP Adjusted EBITDA


$         89.889


$         99.677


$       167.908


$       181.576












(a) Adjustments to retrospectively include results of certain entities prior to the Company's acquisition of the entity.


(b) Costs associated primarily with various restructuring activities, employee relocation expenses or employee severance costs.


(c) Costs associated with the Combination, transactions and acquisition costs.


(d) Costs associated with information technology, consulting, rebranding and other infrequent expenses.

      

SOURCE Coveris Holdings S.A.



RELATED LINKS

http://www.coveris.com