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Libbey Inc. Announces Second Quarter 2012 Financial Results

Quarter Included Sales of $209.2 Million; Income from Operations of $29.0 Million; Adjusted EBITDA of $39.7 Million

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TOLEDO, Ohio, July 26, 2012 /PRNewswire/ -- Libbey Inc. (NYSE MKT: LBY) today reported results for the second quarter ended June 30, 2012.

Second Quarter Highlights

  • Sales for the second quarter were $209.2 million, compared to $214.0 million for the second quarter of 2011, a decrease of 2.2 percent (an increase of 1.4 percent excluding currency fluctuation).
  • Sales in the Glass Operations segment were $190.5 million, compared to $194.5 million in the second quarter of 2011, a decrease of 2.0 percent (an increase of 2.0 percent excluding currency fluctuation).  Sales performance was led by a 24.2 percent increase in sales within our China sales region (20.8 percent excluding currency impact).
  • Income from operations (IFO) grew 17.2 percent, compared to the second quarter of 2011, increasing to $29.0 million from $24.7 million in the year-ago quarter.
  • Adjusted EBITDA increased 14.0 percent to a record for any quarter of $39.7 million, compared to $34.8 million for the second quarter of 2011. 
  • Working capital as a percentage of the last twelve months' sales was 24.5 percent at June 30, 2012, compared to 25.2 percent during the same time period in 2011.

"We are encouraged by these results, driven by our efforts to increase productivity and control costs as well as the solid sales growth we achieved in select markets," said Stephanie A. Streeter, chief executive officer of Libbey Inc.  "Our sales were particularly strong in glass operations in the U.S. and Canada, and in China.  On the other hand, sales were disappointing in Mexico and Europe.  Despite this reasonably strong quarter, we have a lot of work to do to sustain performance and secure our future," said Streeter.  "The strategic plan we announced earlier this month will strengthen and build upon the efforts to improve our cost structure, leverage our advantaged businesses and strengthen our balance sheet."  

Second Quarter Regional Sales and Operational Review

  • Glass Operations sales were led by a 24.2 percent increase in sales within our China sales region (20.8 percent excluding currency impact) and a 5.9 percent increase in sales within our U.S. and Canada sales region.  Sales within our Mexico sales region were down 12.9 percent (excluding currency impact, net sales were 2.7 percent lower than the prior year quarter).  We saw a 16.0 percent decrease in sales within our European sales region (a 6.2 percent decrease excluding currency fluctuation). 
  • Sales to U.S. and Canadian foodservice glassware customers increased by 5.1 percent. Glassware sales to U.S. and Canadian retail customers increased 7.2 percent during the second quarter of 2012, while sales to business-to-business customers in the U.S. and Canada increased 5.5 percent.
  • Sales in the Other Operations segment were $18.9 million, compared to $19.7 million in the prior-year quarter.   As a result of the sale of substantially all of the assets of Traex in late April 2011, the second quarter of 2011 included net sales of $1.2 million of Traex® products which were no longer offered for sale by the Company in the second quarter of 2012.  This accounted for more than the total $0.8 million decrease in sales for Other Operations.  Increased sales to World Tableware customers of 5.1 percent during the quarter were partially offset by a 4.9 percent decrease in sales to Syracuse China customers.
  • Interest expense decreased by $0.8 million to $10.0 million, compared to $10.8 million in the year-ago period, primarily driven by lower interest rates.
  • Our effective tax rate was a benefit of 12.8 percent for the quarter-ended June 30, 2012, compared to an expense of 9.3 percent for the quarter-ended June 30, 2011.  The effective tax rate was influenced by jurisdictions with recorded valuation allowances, intra-period tax allocations and changes in the mix of earnings with differing statutory rates.
  • The $31.1 million of special items during the second quarter of 2012 were the result of a loss on redemption of debt in conjunction with the new senior note offering completed during the quarter. The significant special items in the second quarter of 2011 included a gain on the sale of substantially all of the assets of Traex and an equipment credit net of CEO transition expenses.

Six-Month Highlights

  • Sales for the first six months of 2012 were $397.1 million, compared to $395.0 million for the first half of 2011, an increase of 0.5 percent (or 3.2 percent excluding currency fluctuation).
  • Sales in the Glass Operations segment were $361.8 million, compared to $356.5 million in the first half of 2011, an increase of 1.5 percent (or 4.4 percent excluding currency fluctuation).  A primary contributor was a 47.9 percent increase in sales within our China sales region (42.8 percent excluding currency impact).
  • Income from operations grew 24.0 percent, compared to the first half of 2011, increasing to $43.9 million from $35.4 million in the year-ago six-month period.  
  • Adjusted EBITDA increased 15.3 percent to $64.6 million, compared to $56.0 million for the first half of 2011.

Six-Month Regional Sales and Operational Review

  • Primary contributors to increased Glass Operations sales were a 47.9 percent increase in sales within our China sales region (42.8 percent excluding currency impact) and a 5.3 percent increase in sales within our U.S. and Canada sales region.  We reported 4.6 percent lower sales within our Mexico sales region; however, excluding currency impact, net sales were 3.7 percent higher than the prior-year period.  We saw a 10.1 percent decrease in sales within our European sales region (a 2.6 percent decrease excluding currency fluctuation). 
  • Sales to U.S. and Canadian foodservice glassware customers increased by 7.3 percent. Glassware sales to U.S. and Canadian business-to-business customers increased 5.0 percent during the first half of 2012, while sales to retail customers in the U.S. and Canada were 3.3 percent higher.
  • Sales in the Other Operations segment were $35.7 million, compared to $38.9 million in the prior-year period.  As a result of the sale of substantially all of the assets of Traex in late April 2011, the first half of 2011 included net sales of $4.8 million of Traex® products which were no longer offered for sale by the Company in the first half of 2012.  This accounted for more than the total $3.2 million decrease in sales for Other Operations. Partially offsetting the lack of sales of Traex® products were increased sales to World Tableware customers of 5.8 percent during the first half of 2012 and a 2.0 percent increase in sales to Syracuse China customers.
  • Interest expense decreased by $2.0 million to $20.4 million, compared to $22.4 million in the year-ago period, the result of a mix of lower debt and interest rates in various months throughout the first half of the year.
  • Our effective tax rate was 23.3 percent for the six-month period ended June 30, 2012, compared to 11.6 percent for the first half of 2011.  The effective tax rate was influenced by jurisdictions with recorded valuation allowances, intra-period tax allocations and changes in the mix of earnings with differing statutory rates.

Working Capital and Liquidity

  • As of June 30, 2012, working capital, defined as inventories and accounts receivable less accounts payable, was $200.6 million, compared to $204.3 million at June 30, 2011. This reduced investment in working capital resulted in working capital as a percentage of the last twelve months' net sales of 24.5 percent at June 30, 2012, compared to 25.2 percent at June 30, 2011.
  • Libbey reported that it had available capacity of $75.6 million under its ABL credit facility as of June 30, 2012, with no loans currently outstanding.  The Company also had cash on hand of $19.6 million at June 30, 2012.

Webcast Information

Libbey will hold a conference call for investors on Thursday, July 26, 2012, 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 7 days after the conclusion of the call.

About Libbey Inc.

Based in Toledo, Ohio, since 1888, 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 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 hollowware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States.  In 2011, Libbey Inc.'s net sales totaled $817.1 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 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, 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 8-K filed with the Commission on May 9, 2012.  Important factors potentially affecting performance include but are not limited to 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 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.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)



Three months ended June 30,


2012


2011

Net sales

$

209,247



$

214,013


Freight billed to customers

759



838


Total revenues

210,006



214,851


Cost of sales (1)

153,659



165,015


Gross profit

56,347



49,836


Selling, general and administrative expenses (1)

27,378



25,224


Special charges (1)



(100)


Income from operations

28,969



24,712


Loss on redemption of debt  (1)

(31,075)




Other income (1)

427



3,064


(Loss) earnings before interest and income taxes

(1,679)



27,776


Interest expense

9,957



10,787


(Loss) income before income taxes

(11,636)



16,989


(Benefit) provision for income taxes (1)

(1,493)



1,583


Net (loss) income

$

(10,143)



$

15,406






Net (loss) income per share:




Basic

$

(0.49)



$

0.77


Diluted

$

(0.49)



$

0.74






Weighted average shares:




Outstanding

20,838



20,099


Diluted

20,838



20,861



(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,


2012


2011

Net sales

$

397,076



$

395,028


Freight billed to customers

1,467



1,249


Total revenues

398,543



396,277


Cost of sales (1)

299,140



310,295


Gross profit

99,403



85,982


Selling, general and administrative expenses (1)

55,504



50,626


Special charges (1)



(49)


Income from operations

43,899



35,405


Loss on redemption of debt (1)

(31,075)



(2,803)


Other (expense) income (1)

(164)



6,070


Earnings before interest and income taxes

12,660



38,672


Interest expense

20,365



22,370


(Loss) income before income taxes

(7,705)



16,302


Provision for income taxes

1,797



1,897


Net (loss) income

$

(9,502)



$

14,405






Net (loss) income per share:




Basic

$

(0.46)



$

0.72


Diluted

$

(0.46)



$

0.69






Weighted average shares:




Outstanding

20,804



20,027


Diluted

20,804



20,812



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

 

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



June 30, 2012


December 31, 2011


(unaudited)



ASSETS:




Cash and cash equivalents

$

19,577



$

58,291


Accounts receivable — net

87,650



88,045


Inventories — net

167,037



145,859


Other current assets

7,246



9,701


Total current assets

281,510



301,896






Pension asset

25,237



17,485


Goodwill and purchased intangibles — net

187,117



187,772


Property, plant and equipment — net

254,680



264,718


Other assets

19,605



18,280


Total assets

$

768,149



$

790,151






LIABILITIES AND SHAREHOLDERS' EQUITY:




Notes payable

$



$

339


Accounts payable

54,065



58,759


Accrued liabilities

79,442



88,761


Pension liability (current portion)

2,168



5,990


Non-pension postretirement benefits (current portion)

4,721



4,721


Other current liabilities

7,028



6,730


Long-term debt due within one year

3,737



3,853


Total current liabilities

151,161



169,153






Long-term debt

473,858



393,168


Pension liability

39,511



122,145


Non-pension postretirement benefits

69,595



68,496


Other liabilities

10,042



9,409


Total liabilities

744,167



762,371






Common stock and capital in excess of par value

311,257



311,188


Retained deficit

(164,538)



(155,036)


Accumulated other comprehensive loss

(122,737)



(128,372)


Total shareholders' equity

23,982



27,780


Total liabilities and shareholders' equity

$

768,149



$

790,151



 

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



Three months ended June 30,


2012


2011

Operating activities:




Net (loss) income

$

(10,143)



$

15,406


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




Depreciation and amortization

10,288



11,027


Loss (gain) on asset sales and disposals

168



(3,436)


Change in accounts receivable

(2,078)



(4,216)


Change in inventories

(9,925)



(4,331)


Change in accounts payable

630



1,339


Accrued interest and amortization of discounts, warrants and finance fees

(279)



9,479


Call premium on 10% senior notes

23,602




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

10,975




Pension & non-pension postretirement benefits

(82,019)



(507)


Restructuring charges



(421)


Accrued liabilities & prepaid expenses

7,308



9,476


Income taxes

(2,097)



(5,443)


Share-based compensation expense

1,138



1,140


Other operating activities

11



401


Net cash (used in) provided by operating activities

(52,421)



29,914






Investing activities:




Additions to property, plant and equipment

(5,386)



(9,892)


Net proceeds from sale of Traex



12,842


Proceeds from asset sales and other

239



597


Net cash (used in) provided by investing activities

(5,147)



3,547






Financing activities:




Net (repayments) on ABL credit facility



(2,245)


Other repayments

(9,568)



(49)


Proceeds from 6.875% senior notes

450,000




Payments on 10% senior notes

(360,000)




Call premium on 10% senior notes

(23,602)




Stock options exercised

12



3


Debt issuance costs and other

(12,154)



(327)


Net cash provided by (used in) financing activities

44,688



(2,618)






Effect of exchange rate fluctuations on cash

(361)



354


(Decrease) increase in cash

(13,241)



31,197






Cash at beginning of period

32,818



13,112


Cash at end of period

$

19,577



$

44,309


 

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



Six months ended June 30,


2012


2011

Operating activities:




Net (loss) income

$

(9,502)



$

14,405


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




Depreciation and amortization

20,824



21,908


Loss (gain) on asset sales and disposals

167



(6,796)


Change in accounts receivable

(474)



(4,802)


Change in inventories

(22,091)



(19,072)


Change in accounts payable

(4,588)



672


Accrued interest and amortization of discounts, warrants and finance fees

(7,654)



826


Call premium on 10% senior notes

23,602



1,203


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

10,975



1,600


Pension & non-pension postretirement benefits

(82,579)



2,944


Restructuring charges



(566)


Accrued liabilities & prepaid expenses

(2,028)



1,209


Income taxes

(120)



(9,746)


Share-based compensation expense

1,865



1,967


Other operating activities

84



1,082


Net cash (used in) provided by operating activities

(71,519)



6,834






Investing activities:




Additions to property, plant and equipment

(11,832)



(18,398)


Net proceeds from sale of Traex



12,842


Proceeds from asset sales and other

419



5,199


Net cash used in investing activities

(11,413)



(357)






Financing activities:




Net borrowings on ABL credit facility



2,105


Other repayments

(9,962)



(97)


Proceeds from 6.875% senior notes

450,000




Payments on 10% senior notes

(360,000)



(40,000)


Call premium on 10% senior notes

(23,602)



(1,203)


Stock options exercised

40



478


Debt issuance costs and other

(12,154)



(443)


Net cash provided by (used in) financing activities

44,322



(39,160)






Effect of exchange rate fluctuations on cash

(104)



734


Decrease in cash

(38,714)



(31,949)






Cash at beginning of period

58,291



76,258


Cash at end of period

$

19,577



$

44,309



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,



2012


2011



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

209,247



$



$

209,247



$

214,013



$



$

214,013


Freight billed to customers


759





759



838





838


Total revenues


210,006





210,006



214,851





214,851


Cost of sales


153,659





153,659



165,015



43



164,972


Gross profit


56,347





56,347



49,836



(43)



49,879


Selling, general and administrative expenses


27,378





27,378



25,224



(385)



25,609


Special charges








(100)



(100)




Income from operations


28,969





28,969



24,712



442



24,270


Loss on redemption of debt


(31,075)



(31,075)










Other income (expense)


427





427



3,064



3,537



(473)


(Loss) earnings before interest and income taxes


(1,679)



(31,075)



29,396



27,776



3,979



23,797


Interest expense


9,957





9,957



10,787





10,787


(Loss) income before income taxes


(11,636)



(31,075)



19,439



16,989



3,979



13,010


(Benefit) provision for income taxes


(1,493)





(1,493)



1,583



(922)



2,505


Net (loss) income


$

(10,143)



$

(31,075)



$

20,932



$

15,406



$

4,901



$

10,505















Net (loss) income per share:













Basic


$

(0.49)



$

(1.49)



$

1.00



$

0.77



$

0.24



$

0.52


Diluted


$

(0.49)



$

(1.49)



$

0.98



$

0.74



$

0.23



$

0.50















Weighted average shares:













Outstanding


20,838







20,099






Diluted


20,838





21,276



20,861






 



Three months ended June 30, 2012


Three months ended June 30, 2011

Special Items Detail  -  (Income) Expense:


Finance

Fees (1)


Total Special Items


Sale of

Land (2)


Sale of

Traex (3)


Restructuring

Charges (4)


CEO Transition Expenses


Equipment

Credit


Total

Special

Items

Cost of sales


$



$



$



$



$

43



$



$



$

43


SG&A












420



(805)



(385)


Special charges










(100)







(100)


Loss on redemption of debt


31,075



31,075














Other income/expense








(3,321)







(216)



(3,537)


Income taxes






(922)











(922)


Total Special Items


$

31,075



$

31,075



$

(922)



$

(3,321)



$

(57)



$

420



$

(1,021)



$

(4,901)


 

(1) Finance fees 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.


(2) Tax effect on the net gain on the sale of land at our Libbey Holland facility. 


(3) Gain on the sale of substantially all of the assets of Traex.


(4) Restructuring charges are related to the closure of the decorating operations at our Shreveport manufacturing facility.


 

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,



2012


2011



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

397,076



$



$

397,076



$

395,028



$



$

395,028


Freight billed to customers


1,467





1,467



1,249





1,249


Total revenues


398,543





398,543



396,277





396,277


Cost of sales


299,140





299,140



310,295



43



310,252


Gross profit


99,403





99,403



85,982



(43)



86,025


Selling, general and administrative expenses


55,504





55,504



50,626



(385)



51,011


Special charges








(49)



(49)




Income from operations


43,899





43,899



35,405



391



35,014


Loss on redemption of debt


(31,075)



(31,075)





(2,803)



(2,803)




Other (expense) income


(164)





(164)



6,070



6,982



(912)


Earnings before interest and income taxes


12,660



(31,075)



43,735



38,672



4,570



34,102


Interest expense


20,365





20,365



22,370





22,370


(Loss) income before income taxes


(7,705)



(31,075)



23,370



16,302



4,570



11,732


Provision for income taxes


1,797





1,797



1,897





1,897


Net (loss) income


$

(9,502)



$

(31,075)



$

21,573



$

14,405



$

4,570



$

9,835















Net (loss) income per share:













Basic


$

(0.46)



$

(1.49)



$

1.04



$

0.72



$

0.23



$

0.49


Diluted


$

(0.46)



$

(1.49)



$

1.02



$

0.69



$

0.22



$

0.47















Weighted average shares:













Outstanding


20,804







20,027






Diluted


20,804





21,228



20,812






 



Six months ended June 30, 2012




Six months ended June 30, 2011

Special Items Detail-(income) expense:


Finance

Fees (1)


Total

Special

 Items


Sale of

Land (2)


Sale of

Traex (3)


Finance

Fees (1)


Restructuring

Charges (4)


CEO Transition Expenses


Equipment

Credit


Total

Special

 Items

Cost of sales


$



$



$



$



$



$

43



$



$



$

43


SG&A














420



(805)



(385)


Special charges












(49)







(49)


Loss on redemption of debt


31,075



31,075







2,803









2,803


Other (income) expense






(3,445)



(3,321)









(216)



(6,982)


Total Special Items


$

31,075



$

31,075



$

(3,445)



$

(3,321)



$

2,803



$

(6)



$

420



$

(1,021)



$

(4,570)


 

(1) Finance fees for the six months ended 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. Finance fees for the six months ended 2011 include the write-off of unamortized finance fees and discounts and call premium payments on the $40.0 million senior notes redeemed in March 2011.


(2) Net gain on the sale of land at our Libbey Holland facility.


(3) Gain on the sale of substantially all of the assets of Traex.


(4) Restructuring charges are related to the closure of our Syracuse, New York, manufacturing facility and the decorating operations at our Shreveport manufacturing facility.

 

Table 3

Reconciliation of Net (Loss) Income 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,



2012


2011


2012


2011

Reported net (loss) income


$

(10,143)



$

15,406



$

(9,502)



$

14,405


Add:









Interest expense


9,957



10,787



20,365



22,370


(Benefit) provision for income taxes


(1,493)



1,583



1,797



1,897


Depreciation and amortization


10,288



11,027



20,824



21,908


EBITDA


8,609



38,803



33,484



60,580


Add: Special items before interest and taxes


31,075



(3,979)



31,075



(4,570)


Adjusted EBITDA


$

39,684



$

34,824



$

64,559



$

56,010


 

Table 4

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

(dollars in thousands)



Three months ended June 30,


Six months ended June 30,



2012


2011


2012


2011










Net cash (used in) provided by operating activities


$

(52,421)



$

29,914



$

(71,519)



$

6,834


Capital expenditures


(5,386)



(9,892)



(11,832)



(18,398)


Net proceeds from sale of Traex




12,842





12,842


Proceeds from asset sales and other


239



597



419



5,199


Free Cash Flow


$

(57,568)



$

33,461



$

(82,932)



$

6,477


 


Table 5

Summary Business Segment Information

(dollars in thousands)



Three months ended June 30,


Six months ended June 30,



2012


2011


2012


2011

Net Sales:









Glass Operations(1)


$

190,541



$

194,487



$

361,819



$

356,540


Other Operations(2)


18,942



19,690



35,696



38,851


Eliminations


(236)



(164)



(439)



(363)


Consolidated


$

209,247



$

214,013



$

397,076



$

395,028











Segment Earnings Before Interest & Taxes

    (Segment EBIT) (3) :









Glass Operations(1)


$

38,306



$

29,973



$

60,289



$

47,364


Other Operations(2)


3,677



3,762



6,741



6,641


Segment EBIT


$

41,983



$

33,735



$

67,030



$

54,005











Reconciliation of Segment EBIT to Net (Loss) Income:









Segment EBIT


$

41,983



$

33,735



$

67,030



$

54,005


Retained corporate costs (4)


(12,587)



(9,938)



(23,295)



(19,903)


Consolidated Adjusted EBIT


29,396



23,797



43,735



34,102


Loss on redemption of debt


(31,075)





(31,075)



(2,803)


Gain on sale of Traex assets




3,321





3,321


Gain on sale of land








3,445


Equipment credit




1,021





1,021


Restructuring charges




57





6


Other special charges




(420)





(420)


Special Items before interest and taxes


(31,075)



3,979



(31,075)



4,570


Interest expense


(9,957)



(10,787)



(20,365)



(22,370)


Income taxes


1,493



(1,583)



(1,797)



(1,897)


Net (loss) income


$

(10,143)



$

15,406



$

(9,502)



$

14,405











Depreciation & Amortization:









Glass Operations(1)


$

9,890



$

10,531



$

20,026



$

20,780


Other Operations(2)


11



54



22



246


Corporate


387



442



776



882


Consolidated


$

10,288



$

11,027



$

20,824



$

21,908


 

(1) Glass Operations—includes worldwide sales of manufactured and sourced glass tableware from domestic and international subsidiaries.


(2) Other Operations—includes worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware and serveware. Plastic items were sold through April 28, 2011.


(3) 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.


(4) 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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