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Libbey Inc. Announces Record Second Quarter 2013 Financial Results

Ongoing progress on Libbey 2015 strategic plan results in best second quarter gross profit margin since 2001

Results also include record adjusted income from operations and adjusted EBITDA

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TOLEDO, Ohio, July 30, 2013 /PRNewswire/ -- Libbey Inc. (NYSE MKT: LBY) today reported results for the second quarter-ended June 30, 2013.

Second Quarter Financial Highlights

  • Sales for the second quarter were $209.9 million, compared to $209.2 million for the second quarter of 2012, an increase of 0.3 percent (a decrease of 1.1 percent excluding currency fluctuation).
  • Net income grew to $12.4 million from a loss of $10.1 million in the second quarter of 2012.
  • Adjusted income from operations grew 8.6 percent, to $31.5 million from $29.0 million in the year-ago quarter, increasing to an all-time record for any quarter in Company history.
  • Adjusted EBITDA increased 5.8 percent to an all-time record for the Company of $42.0 million (see Tables 1 and 3), compared to $39.7 million for the second quarter of 2012.

"While lower sales in the high volume retail and business-to-business channels of distribution in the U.S. and Canada contributed to overall flat sales for the quarter, we are very encouraged by sales increases in our other end markets, including EMEA, Asia Pacific and Mexico and Latin America.  The key component of our story, however,  is our continued success in cost reductions, which resulted in record adjusted income from operations and adjusted EBITDA.  This performance is even more notable, given that we had a significant amount of underutilized capacity throughout the Americas during the quarter related to the planned realignment of our production," said Stephanie A. Streeter, chief executive officer of Libbey Inc.

"With six consecutive quarters of year-over-year improvement, we have demonstrated success in improving our cost structure, making productivity improvements, leveraging our advantaged businesses and strengthening our balance sheet.  While capacity utilization will have an even greater impact during the third quarter as we continue to make progress in realigning our production in the Americas, we expect to see continued improvement in adjusted EBITDA and margins for the full-year 2013 as capacity utilization improves in the fourth quarter."  

Second Quarter Segment Sales and Operational Review

  • Sales in the Americas segment were $141.8 million, compared to $148.6 million in the second quarter of 2012, a decrease of 4.6 percent (6.1 percent excluding currency fluctuation). Sales performance was led by a 3.5 percent increase in sales within our Mexican and Latin American end market (a decrease of 1.7 percent excluding currency impact) and a 1.8 percent increase in our U.S. and Canada foodservice glassware channel. However, even with the improvement in foodservice sales, overall sales within our US and Canada end market were lower by 7.8 percent.
  • Sales in the EMEA segment increased 12.6 percent (10.9 percent excluding currency impact) to $38.0 million, compared to $33.7 million in the second quarter of 2012.
  • Sales in Other were $30.1 million, compared to $26.9 million in the prior-year quarter. This increase was largely the result of a 13.4 percent increase in sales to Syracuse China and World Tableware customers, as well as an 8.1 percent increase in sales (6.3 percent excluding currency impact) in the Asia Pacific end market.
  • Interest expense decreased by $1.8 million to $8.1 million, compared to $9.9 million in the year-ago period, primarily driven by lower interest rates.
  • Our effective tax rate was an expense of 28.2 percent for the quarter-ended June 30, 2013, compared to a benefit of 12.8 percent for the quarter-ended June 30, 2012. The effective tax rate was influenced by jurisdictions with recorded valuation allowances and changes in the mix of earnings with differing statutory rates.

Six-Month Financial Highlights

  • Sales for the first six months of 2013 were $393.4 million, compared to $397.1 million for the first half of 2012, a decrease of 0.9 percent (or 1.9 percent excluding currency fluctuation).
  • Net income for the first six months of 2013 grew to $14.4 million, compared to a net loss of $9.5 million during the first half of 2012.
  • Adjusted EBITDA increased 5.6 percent to $68.2 million, compared to $64.6 million for the first half of 2012.

Sixth-Month Segment Sales and Operational Review

  • Sales in the Americas segment were $265.4 million, compared to $278.3 million in the first six months of 2012, a decrease of 4.6 percent (5.7 percent excluding currency fluctuation). Sales performance was led by a 4.0 percent increase in sales within our Mexican and Latin American end market (0.5 percent excluding currency impact), offset by an 8.1 percent decrease within our US and Canada end market.
  • Sales in the EMEA segment increased 11.9 percent (10.7 percent excluding currency impact) to $72.2 million, compared to $64.5 million in the first half of 2012.
  • Sales in Other were $55.8 million, compared to $54.3 million in the prior-year period. This increase was largely the result of a 9.8 percent increase in sales to Syracuse China and World Tableware customers, offset by a 10.2 percent decrease in sales (11.1 percent excluding currency impact) in the Asia Pacific end market.
  • Interest expense decreased by $3.8 million to $16.6 million, compared to $20.4 million in the year-ago period, primarily driven by lower interest rates.
  • Our effective tax rate was 27.8 percent for the six months ended June 30, 2013, compared to 23.3 percent for the six months ended June 30, 2012. The effective tax rate was influenced by jurisdictions with recorded valuation allowances and changes in the mix of earnings with differing statutory rates.

Balance Sheet and Liquidity

  • Libbey repaid $45.0 million of its senior notes in May 2013 and realized a net reduction in debt outstanding of over $35.0 million during the quarter.
  • Libbey reported that it had available capacity of $68.8 million under its ABL credit facility as of June 30, 2013, with $9.8 million in loans currently outstanding. The Company also had cash on hand of $10.5 million at June 30, 2013.
  • As of June 30, 2013, working capital, defined as inventories and accounts receivable less accounts payable, was $208.1 million, compared to $200.6 million at June 30, 2012. This increase in working capital resulted from higher inventories and receivables, partially offset by higher accounts payable.

Sherry Buck, chief financial officer, added, "This quarter, the sixth consecutive quarter of margin and adjusted EBITDA improvement, represents continued progress on the journey to execute our Libbey 2015 strategy.  The first six-month results, including our May 2013 repayment of $45 million of our senior notes, keep us solidly on track to further reduce costs, strengthen our balance sheet, meet the objectives laid out in our plan and position Libbey's global business for long-term success."

Supplier Awards from Sysco Corporation and the Edward Don Company

Libbey also announced that Sysco Corporation, the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home, has named Libbey as a "Supplier of Excellence."   In addition, on June 28, 2013, the Edward Don Company, a leading distributor of foodservice equipment and supplies, recognized Libbey Inc. as one of only three recipients of their Outstanding Supplier Award.  These two customer awards are the latest of many that Libbey has received in the last several years.

Commenting on these achievements, Ms. Streeter said, "We are proud to once again be recognized as best in class by our customers. With ever-increasing competitive pressures in this challenging economic environment, this recognition confirms the strength of our brands and the quality of the service we provide our customers."

Webcast Information

Libbey will hold a conference call for investors on Tuesday, July 30, 2013, at 11 a.m. Eastern Daylight Time.  The conference call will be simulcast 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.  A replay will be available for 14 days after the conclusion of the call.

About Libbey Inc.

Based in Toledo, Ohio, since 1888, we believe Libbey Inc. is the largest manufacturer of glass tableware in the western hemisphere and one of the largest glass tableware manufacturers in the world. It supplies products to foodservice, retail, industrial and business-to-business customers in over 100 countries, and it is the leading manufacturer of tabletop products for the U.S. foodservice industry.

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 a leading producer of glass tableware in Mexico and Latin America.  Its 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 hollowware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States.  In 2012, Libbey Inc.'s net sales totaled $825.3 million.

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, and that 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 18, 2013.  Important factors potentially affecting performance include but are not limited to risks related to our ability to borrow under our ABL credit agreement; increased competition from foreign suppliers 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, freight, corrugated packaging, and other purchased materials; 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 high inflation in Mexico and exchange rate changes to the value of the Mexican peso and the earnings and cash flow of Libbey Mexico, 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.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)




Three months ended June 30,


2013


2012

Net sales

$

209,904



$

209,247


Freight billed to customers

771



759


Total revenues

210,675



210,006


Cost of sales (1)

153,213



153,659


Gross profit

57,462



56,347


Selling, general and administrative expenses (1)

29,635



27,378


Special charges (1)

(85)




Income from operations

27,912



28,969


Loss on redemption of debt  (1)

(2,518)



(31,075)


Other income

51



427


Earnings (loss) before interest and income taxes

25,445



(1,679)


Interest expense

8,126



9,957


Income (loss) before income taxes

17,319



(11,636)


Provision (benefit) for income taxes (1)

4,883



(1,493)


Net income (loss)

$

12,436



$

(10,143)






Net income (loss) per share:




Basic

$

0.58



$

(0.49)


Diluted

$

0.57



$

(0.49)






Weighted average shares:




Outstanding

21,289



20,838


Diluted

21,943



20,838








(1) Refer to Table 1 for Special Items detail.






 


Libbey Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)




Six months ended June 30,


2013


2012

Net sales

$

393,380



$

397,076


Freight billed to customers

1,523



1,467


Total revenues

394,903



398,543


Cost of sales (1)

295,209



299,140


Gross profit

99,694



99,403


Selling, general and administrative expenses (1)

56,032



55,504


Special charges (1)

4,229




Income from operations

39,433



43,899


Loss on redemption of debt (1)

(2,518)



(31,075)


Other expense

(384)



(164)


Earnings before interest and income taxes

36,531



12,660


Interest expense

16,561



20,365


Income (loss) before income taxes

19,970



(7,705)


Provision for income taxes (1)

5,545



1,797


Net income (loss)

$

14,425



$

(9,502)






Net income (loss) per share:




Basic

$

0.68



$

(0.46)


Diluted

$

0.66



$

(0.46)






Weighted average shares:




Outstanding

21,202



20,804


Diluted

21,707



20,804






(1) Refer to Table 2 for Special Items detail.





Libbey Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)






June 30, 2013


December 31, 2012


(unaudited)



ASSETS:




Cash and cash equivalents

$

10,544



$

67,208


Accounts receivable — net

91,482



80,850


Inventories — net

175,911



157,549


Other current assets

20,000



12,997


Total current assets

297,937



318,604






Pension asset

10,525



10,196


Goodwill and purchased intangibles — net

186,785



186,794


Property, plant and equipment — net

253,800



258,154


Other assets

24,133



28,428


Total assets

$

773,180



$

802,176






LIABILITIES AND SHAREHOLDERS' EQUITY:




Accounts payable

$

59,309



$

65,712


Accrued liabilities

74,498



84,268


Pension liability (current portion)

602



613


Non-pension postretirement benefits (current portion)

4,739



4,739


Other current liabilities

3,292



5,915


Long-term debt due within one year

14,242



4,583


Total current liabilities

156,682



165,830






Long-term debt

415,506



461,884


Pension liability

61,794



60,909


Non-pension postretirement benefits

67,314



71,468


Other liabilities

19,002



17,609


Total liabilities

720,298



777,700






Common stock and capital in excess of par value

318,538



313,586


Retained deficit

(133,645)



(148,070)


Accumulated other comprehensive loss

(132,011)



(141,040)


Total shareholders' equity

52,882



24,476


Total liabilities and shareholders' equity

$

773,180



$

802,176


 

Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)




Three months ended June 30,


2013


2012

Operating activities:




Net income (loss)

$

12,436



$

(10,143)


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:




Depreciation and amortization

11,623



10,288


Loss on asset sales and disposals

31



168


Change in accounts receivable

(4,836)



(2,078)


Change in inventories

(7,857)



(9,925)


Change in accounts payable

1,428



630


Accrued interest and amortization of discounts and finance fees

(7,521)



(279)


Call premium on senior notes

1,350



23,602


Write-off of finance fee & discounts on senior notes and ABL

1,168



10,975


Pension & non-pension postretirement benefits

1,504



(82,019)


Restructuring charges

(659)




Accrued liabilities & prepaid expenses

(793)



7,308


Income taxes

(2,553)



(2,097)


Share-based compensation expense

1,485



1,138


Other operating activities

2,579



11


Net cash provided by (used in) operating activities

9,385



(52,421)






Investing activities:




Additions to property, plant and equipment

(10,889)



(5,386)


Proceeds from asset sales and other

4



239


Net cash used in investing activities

(10,885)



(5,147)






Financing activities:




Borrowings on ABL credit facility

30,400




Repayments on ABL credit facility

(20,600)




Other repayments

(55)



(9,568)


(Payments on) proceeds from 6.875% senior notes

(45,000)



450,000


Payments on 10% senior notes



(360,000)


Call premium on senior notes

(1,350)



(23,602)


Stock options exercised

2,511



12


Debt issuance costs and other



(12,154)


Net cash (used in) provided by financing activities

(34,094)



44,688






Effect of exchange rate fluctuations on cash

189



(361)


Decrease in cash

(35,405)



(13,241)






Cash at beginning of period

45,949



32,818


Cash at end of period

$

10,544



$

19,577


 

Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)




Six months ended June 30,


2013


2012

Operating activities:




Net income (loss)

$

14,425



$

(9,502)


Adjustments to reconcile net income (loss) to net cash used in operating activities:




Depreciation and amortization

22,397



20,824


Loss on asset sales and disposals

33



167


Change in accounts receivable

(10,879)



(474)


Change in inventories

(18,492)



(22,091)


Change in accounts payable

(6,317)



(4,588)


Accrued interest and amortization of discounts and finance fees

610



(7,654)


Call premium on senior notes

1,350



23,602


Write-off of finance fee & discounts on senior notes and ABL

1,168



10,975


Pension & non-pension postretirement benefits

5,204



(82,579)


Restructuring charges

3,655




Accrued liabilities & prepaid expenses

(16,585)



(2,028)


Income taxes

(4,179)



(120)


Share-based compensation expense

2,309



1,865


Other operating activities

2,006



84


Net cash used in operating activities

(3,295)



(71,519)






Investing activities:




Additions to property, plant and equipment

(19,771)



(11,832)


Proceeds from asset sales and other

8



419


Net cash used in investing activities

(19,763)



(11,413)






Financing activities:




Borrowings on ABL credit facility

30,400




Repayments on ABL credit facility

(20,600)




Other repayments

(114)



(9,962)


(Payments on) proceeds from 6.875% senior notes

(45,000)



450,000


Payments on 10% senior notes



(360,000)


Call premium on senior notes

(1,350)



(23,602)


Stock options exercised

3,048



40


Debt issuance costs and other



(12,154)


Net cash (used in) provided by financing activities

(33,616)



44,322






Effect of exchange rate fluctuations on cash

10



(104)


Decrease in cash

(56,664)



(38,714)






Cash at beginning of period

67,208



58,291


Cash at end of period

$

10,544



$

19,577


 

In accordance with the SEC's Regulation G, tables 1, 2, 3, 4 and 5 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 "As Adjusted" Results - Quarter



(dollars in thousands, except per-share amounts)







(unaudited)















Three months ended June 30,



2013


2012



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

209,904



$



$

209,904



$

209,247



$



$

209,247


Freight billed to customers


771





771



759





759


Total revenues


210,675





210,675



210,006





210,006


Cost of sales


153,213



1,133



152,080



153,659





153,659


Gross profit


57,462



(1,133)



58,595



56,347





56,347


Selling, general and administrative expenses


29,635



2,496



27,139



27,378





27,378


Special charges


(85)



(85)










Income from operations


27,912



(3,544)



31,456



28,969





28,969


Loss on redemption of debt


(2,518)



(2,518)





(31,075)



(31,075)




Other income


51





51



427





427


Earnings (loss) before interest and income taxes


25,445



(6,062)



31,507



(1,679)



(31,075)



29,396


Interest expense


8,126





8,126



9,957





9,957


Income (loss) before income taxes


17,319



(6,062)



23,381



(11,636)



(31,075)



19,439


Provision for income taxes


4,883



(58)



4,941



(1,493)





(1,493)


Net income (loss)


$

12,436



$

(6,004)



$

18,440



$

(10,143)



$

(31,075)



$

20,932















Net income (loss) per share:













Basic


$

0.58



$

(0.28)



$

0.87



$

(0.49)



$

(1.49)



$

1.00


Diluted


$

0.57



$

(0.27)



$

0.84



$

(0.49)



$

(1.49)



$

0.98















Weighted average shares:













Outstanding


21,289







20,838






Diluted


21,943







20,838





21,276


 



Three months ended June 30, 2013


Three months ended

June 30, 2012

Special Items Detail  - (Income) Expense:


Restructuring Charges(1)


Abandoned Property


Pension Settlement


Finance

Fees(2)


Total Special Items


Finance

Fees(2)


Total Special Items

Cost of sales


$

1,133



$



$



$



$

1,133



$



$


SG&A




1,781



715





2,496






Special charges


(85)









(85)






Loss on redemption of debt








2,518



2,518



31,075



31,075


Income taxes


352



(146)



(58)



(206)



(58)






Total Special Items


$

1,400



$

1,635



$

657



$

2,312



$

6,004



$

31,075



$

31,075


 

(1)

Restructuring charges relate to discontinuing production of certain glassware in North America and reducing manufacturing capacity at our Shreveport, Louisiana, manufacturing facility.

(2)

Finance fees for the three months ended June 2013 include the write-off of unamortized finance fees and call premium payments on the $45.0 million senior notes redeemed in May 2013. Finance Fees for the three months ended June 2012 include the write-off of unamortized finance fees and discounts and call premium payments on the ABL Facility and $360.0 million senior notes redeemed in May and June 2012, partially offset by the write-off of the debt carrying value adjustment related to the termination of the $80.0 million interest rate swap.

 


 














Table 2













Reconciliation of "As Reported" Results to "As Adjusted" Results - Six Months



(dollars in thousands, except per-share amounts)







(unaudited)





Six months ended June 30,



2013


2012



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

393,380



$



$

393,380



$

397,076



$



$

397,076


Freight billed to customers


1,523





1,523



1,467





1,467


Total revenues


394,903





394,903



398,543





398,543


Cost of sales


295,209



1,699



293,510



299,140





299,140


Gross profit


99,694



(1,699)



101,393



99,403





99,403


Selling, general and administrative expenses


56,032



2,496



53,536



55,504





55,504


Special charges


4,229



4,229










Income from operations


39,433



(8,424)



47,857



43,899





43,899


Loss on redemption of debt


(2,518)



(2,518)





(31,075)



(31,075)




Other expense


(384)





(384)



(164)





(164)


Earnings before interest and income taxes


36,531



(10,942)



47,473



12,660



(31,075)



43,735


Interest expense


16,561





16,561



20,365





20,365


Income (loss) before income taxes


19,970



(10,942)



30,912



(7,705)



(31,075)



23,370


Provision for income taxes


5,545



(895)



6,440



1,797





1,797


Net income (loss)


$

14,425



$

(10,047)



$

24,472



$

(9,502)



$

(31,075)



$

21,573















Net income (loss) per share:













Basic


$

0.68



$

(0.47)



$

1.15



$

(0.46)



$

(1.49)



$

1.04


Diluted


$

0.66



$

(0.46)



$

1.13



$

(0.46)



$

(1.49)



$

1.02















Weighted average shares:













Outstanding


21,202







20,804






Diluted


21,707







20,804





21,228


 


















Six months ended June 30, 2013


Six months ended

June 30, 2012

Special Items Detail  - (Income) Expense:


Restructuring

Charges(1)


Abandoned Property


Pension Settlement


Finance

Fees (2)


Total Special Items


Finance

Fees (2)


Total Special Items

Cost of sales


$

1,699



$



$



$



$

1,699



$



$


SG&A




1,781



715





2,496






Special charges


4,229









4,229






Loss on redemption of debt








2,518



2,518



31,075



31,075


Income taxes


(485)



(146)



(58)



(206)



(895)






Total Special Items


$

5,443



$

1,635



$

657



$

2,312



$

10,047



$

31,075



$

31,075


 


(1)

Restructuring charges relate to discontinuing production of certain glassware in North America and reducing manufacturing capacity at our Shreveport, Louisiana, manufacturing facility.

(2)

Finance fees for the six months ended June 2013 include the write-off of unamortized finance fees and call premium payments on the $45.0 million senior notes redeemed in May 2013. Finance fees for the six months ended June 2012 include the write-off of unamortized finance fees and discounts and call premium payments on the ABL Facility and $360.0 million senior notes redeemed in May and June 2012, partially offset by the write-off of the debt carrying value adjustment related to the termination of the $80.0 million interest rate swap.

 

Table 3









Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

(dollars in thousands)


















Three months ended June 30,


Six months ended June 30,



2013


2012


2013


2012

Reported net income (loss)


$

12,436



$

(10,143)



$

14,425



$

(9,502)


Add:









Interest expense


8,126



9,957



16,561



20,365


Provision for (benefit from) income taxes


4,883



(1,493)



5,545



1,797


Depreciation and amortization


11,623



10,288



22,397



20,824


EBITDA


37,068



8,609



58,928



33,484


Add: Special items before interest and taxes


6,062



31,075



10,942



31,075


Less: Depreciation expense included in special items and also in depreciation and amortization above


(1,133)





(1,699)




Adjusted EBITDA


$

41,997



$

39,684



$

68,171



$

64,559


 

Table 4









Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow

(dollars in thousands)









Three months ended June 30,


Six months ended June 30,



2013


2012


2013


2012










Net cash provided by (used in) operating activities


$

9,385



$

(52,421)



$

(3,295)



$

(71,519)


Capital expenditures


(10,889)



(5,386)



(19,771)



(11,832)


Proceeds from asset sales and other


4



239



8



419


Free Cash Flow


$

(1,500)



$

(57,568)



$

(23,058)



$

(82,932)


 


Table 5









Summary Business Segment Information





(dollars in thousands)









Three months ended June 30,


Six months ended June 30,



2013


2012


2013


2012

Net Sales:









Americas (1)


$

141,815



$

148,584



$

265,350



$

278,259


EMEA (2)


37,981



33,723



72,223



64,515


Other (3)


30,108



26,940



55,807



54,302


Consolidated


$

209,904



$

209,247



$

393,380



$

397,076











Segment Earnings Before Interest & Taxes (Segment EBIT) (4) :











Americas (1)


$

32,498



$

31,014



$

50,650



$

46,688


EMEA (2)


569



302



(914)



(278)


Other (3)


4,367



5,508



8,164



10,633


Segment EBIT


$

37,434



$

36,824



$

57,900



$

57,043











Reconciliation of Segment EBIT to Net Income (Loss):









Segment EBIT


$

37,434



$

36,824



$

57,900



$

57,043


Retained corporate costs (5)


(5,927)



(7,428)



(10,427)



(13,308)


Consolidated Adjusted EBIT


31,507



29,396



47,473



43,735


Loss on redemption of debt


(2,518)



(31,075)



(2,518)



(31,075)


Pension settlement charge


(715)





(715)




Restructuring charges


(1,048)





(5,928)




Abandoned property


(1,781)





(1,781)




Special Items before interest and taxes


(6,062)



(31,075)



(10,942)



(31,075)


Interest expense


(8,126)



(9,957)



(16,561)



(20,365)


Income taxes


(4,883)



1,493



(5,545)



(1,797)


Net income (loss)


$

12,436



$

(10,143)



$

14,425



$

(9,502)











Depreciation & Amortization:









Americas (1)


$

7,321



$

6,021



$

13,849



$

12,203


EMEA (2)


2,507



2,466



4,993



5,014


Other (3)


1,407



1,414



2,790



2,831


Corporate


388



387



765



776


Consolidated


$

11,623



$

10,288



$

22,397



$

20,824


 

(1)

Americas—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in North and South America.

(2)

EMEA—includes worldwide sales of manufactured and sourced glass tableware having and end market destination in Europe, the Middle East and Africa.

(3)

Other—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific and worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware, and serveware.

(4)

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.

(5)

Retained corporate costs includes certain headquarter, administrative and facility costs, and other costs that are not allocable to the reporting segments.

SOURCE Libbey Inc.



RELATED LINKS
http://www.libbey.com

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