Libbey Inc. Announces Third Quarter 2012 Financial Results Quarter Included Sales of $209.2 Million; Income from Operations of $24.3 Million and Adjusted EBITDA of $38.0 Million are Both All-Time Records for Any Third Quarter

TOLEDO, Ohio, Oct. 25, 2012 /PRNewswire/ -- Libbey Inc.(NYSE MKT: LBY) today reported results for the third quarter-ended September 30, 2012.

Third Quarter Highlights

  • Sales for the third quarter were $209.2 million, compared to $207.2 million for the third quarter of 2011, an increase of 0.9 percent (or 3.9 percent excluding currency fluctuation).
  • Sales in the Glass Operations segment were $189.9 million, compared to $190.8 million in the third quarter of 2011, a decrease of 0.5 percent (an increase of 2.7 percent excluding currency fluctuation).  Sales performance was led by a 13.0 percent increase in sales within our China sales region (11.4 percent excluding currency impact) and a 9.0 percent increase within our Mexico sales region (14.8 percent excluding currency impact).
  • Income from operations grew 32.4 percent, compared to the third quarter of 2011, increasing to an all-time third quarter record of $24.3 million from $18.4 million in the year-ago quarter.
  • Adjusted EBITDA increased 6.2 percent to a record for any third quarter of $38.0 million, compared to $35.8 million for the third quarter of 2011.

"We are pleased with this quarter's results, driven in large part by the increased focus on driving down costs and defending and growing our key markets, the core of our recently announced strategic plan.  These cost improvements, coupled with notable sales growth in China and Mexico, led to exceptionally strong Adjusted EBITDA, resulting in record third quarter results," said Stephanie A. Streeter, chief executive officer of Libbey Inc.

"We are committed to further improving our cost structure, leveraging our advantaged businesses and strengthening our balance sheet.  We believe these efforts, combined with our overall productivity improvements, will enable strengthened financial and operational performance."  

Third Quarter Regional Sales and Operational Review

  • Glass Operations segment sales were led by a 13.0 percent increase in sales within our China sales region (11.4 percent excluding currency impact) and a 9.0 percent increase in sales within our Mexico sales region (14.8 percent excluding currency impact).  Sales within our U.S. and Canada sales region were higher by approximately 1.0 percent compared to the prior year quarter.  The European sales region saw a 9.7 percent decrease in sales (a 1.7 percent increase excluding currency fluctuation). 
  • Sales to U.S. and Canadian foodservice glassware customers increased by 1.3 percent. Glassware sales to U.S. and Canadian retail customers increased 1.2 percent during the third quarter of 2012, while sales to business-to-business customers in the U.S. and Canada decreased 1.2 percent.
  • Sales in the Other Operations segment increased 17.1 percent to $19.4 million, compared to $16.6 million in the prior-year quarter.  This increase was driven by solid sales increases to both Syracuse China and World Tableware customers during the quarter.
  • Interest expense decreased by $1.8 million to $8.7 million, compared to $10.6 million in the year-ago period, primarily driven by lower interest rates.
  • Our effective tax rate was 3.5 percent for the quarter-ended September 30, 2012, compared to 29.1 percent for the quarter-ended September 30, 2011.  The effective tax rate was influenced by jurisdictions with recorded valuation allowances and changes in the mix of earnings with differing statutory rates.

Nine-Month Highlights

  • Sales for the first nine months of 2012 were $606.2 million, compared to $602.3 million for the first nine months of 2011, an increase of 0.7 percent (or 3.4 percent excluding currency fluctuation).
  • Sales in the Glass Operations segment were $551.7 million, compared to $547.4 million in the first nine months of 2011, an increase of 0.8 percent (or 3.9 percent excluding currency fluctuation).  Contributing to the increase was a 34.6 percent increase in sales within our China sales region (31.0 percent excluding currency impact).
  • Income from operations grew 26.8 percent, compared to the first nine months of 2011, increasing to $68.2 million from $53.8 million in the year-ago nine-month period.  
  • Adjusted EBITDA increased 11.7 percent to an all-time high for the first nine months of the year of $102.5 million, compared to $91.8 million for the first nine months of 2011.

Nine-Month Regional Sales and Operational Review

  • Primary contributors to increased Glass Operations sales were a 34.6 percent increase in sales within our China sales region (31.0 percent excluding currency impact) and a 3.7 percent increase in sales within our U.S. and Canada sales region.  We reported flat sales within our Mexico sales region; however, excluding currency impact, net sales were 7.5 percent higher than in the prior-year period.  We saw a 10.0 percent decrease in sales within our European sales region (only a 1.1 percent decrease excluding currency fluctuation). 
  • Sales to U.S. and Canadian foodservice glassware customers increased by 5.4 percent. Glassware sales to U.S. and Canadian business-to-business customers increased 2.9 percent during the first nine months of 2012, while sales to retail customers in the U.S. and Canada were 2.5 percent higher.
  • Sales in the Other Operations segment were $55.1 million, compared to $55.4 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 nine months of 2011 included net sales of $4.8 million of Traex® products which were no longer offered for sale by the Company in 2012.  Partially offsetting the absence of Traex® product sales were increased sales to World Tableware customers of 8.2 percent and a 10.5 percent increase in sales to Syracuse China customers.
  • Interest expense decreased by $3.8 million to $29.1 million, compared to $32.9 million in the year-ago period, the result of a mix of lower debt and interest rates in various months throughout the first nine months of the year.
  • Our effective tax rate was 30.4 percent for the nine-month period ended September 30, 2012, compared to 18.3 percent for the first nine months 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 September 30, 2012, working capital, defined as inventories and accounts receivable less accounts payable, was $218.1 million, compared to $212.3 million at September 30, 2011. This slight increase in working capital resulted from lower accounts payable.
  • Libbey reported that it had available capacity of $87.8 million under its ABL credit facility as of September 30, 2012, with no loans currently outstanding.  The Company also had cash on hand of $33.3 million at September 30, 2012.

Webcast Information

Libbey will hold a conference call for investors on Thursday, October 25, 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 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 September 30,


2012


2011

Net sales

$

209,150



$

207,246


Freight billed to customers

1,015



511


Total revenues

210,165



207,757


Cost of sales (1)

158,956



162,873


Gross profit

51,209



44,884


Selling, general and administrative expenses (1)

26,887



26,739


Special charges (1)

-



(232)


Income from operations

24,322



18,377


Other (expense) income (1)

(195)



2,237


Earnings before interest and income taxes

24,127



20,614


Interest expense

8,720



10,559


Income before income taxes

15,407



10,055


Provision for income taxes (1)

546



2,928


Net income

$

14,861



$

7,127






Net income per share:




Basic

$

0.71



$

0.35


Diluted

$

0.70



$

0.34






Weighted average shares:




Outstanding

20,896



20,182


Diluted

21,360



20,715



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

 

 

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



Nine months ended September 30,


2012


2011

Net sales

$

606,226



$

602,274


Freight billed to customers

2,482



1,760


Total revenues

608,708



604,034


Cost of sales (1)

458,096



473,168


Gross profit

150,612



130,866


Selling, general and administrative expenses (1)

82,391



77,365


Special charges (1)

-



(281)


Income from operations

68,221



53,782


Loss on redemption of debt (1)

(31,075)



(2,803)


Other (expense) income (1)

(359)



8,307


Earnings before interest and income taxes

36,787



59,286


Interest expense

29,085



32,929


Income before income taxes

7,702



26,357


Provision for income taxes (1)

2,343



4,825


Net income

$

5,359



$

21,532






Net income per share:




Basic

$

0.26



$

1.07


Diluted

$

0.25



$

1.04






Weighted average shares:




Outstanding

20,835



20,079


Diluted

21,267



20,726



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

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



September 30, 2012


December 31, 2011


(unaudited)



ASSETS:




Cash and cash equivalents

$

33,347



$

58,291


Accounts receivable — net

93,962



88,045


Inventories — net

170,814



145,859


Other current assets

8,202



9,701


Total current assets

306,325



301,896






Pension asset

25,842



17,485


Goodwill and purchased intangibles — net

186,944



187,772


Property, plant and equipment — net

251,518



264,718


Other assets

19,597



18,280


Total assets

$

790,226



$

790,151






LIABILITIES AND SHAREHOLDERS' EQUITY:




Notes payable

$

-



$

339


Accounts payable

46,650



58,759


Accrued liabilities

97,788



88,761


Pension liability (current portion)

2,037



5,990


Non-pension postretirement benefits (current portion)

4,721



4,721


Other current liabilities

4,428



6,730


Long-term debt due within one year

3,819



3,853


Total current liabilities

159,443



169,153






Long-term debt

466,858



393,168


Pension liability

37,707



122,145


Non-pension postretirement benefits

70,130



68,496


Other liabilities

9,942



9,409


Total liabilities

744,080



762,371






Common stock and capital in excess of par value

311,791



311,188


Retained deficit

(149,677)



(155,036)


Accumulated other comprehensive loss

(115,968)



(128,372)


Total shareholders' equity

46,146



27,780


Total liabilities and shareholders' equity

$

790,226



$

790,151



 

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



Three months ended September 30,


2012


2011

Operating activities:




Net income

$

14,861



$

7,127


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




Depreciation and amortization

10,073



10,357


Loss on asset sales and disposals

127



347


Change in accounts receivable

(6,023)



2,989


Change in inventories

(3,006)



(5,084)


Change in accounts payable

(7,499)



(7,855)


Accrued interest and amortization of discounts, warrants and finance fees

8,186



(7,135)


Pension & non-pension postretirement benefits

1,241



(11,530)


Restructuring charges

-



(262)


Accrued liabilities & prepaid expenses

9,770



3,673


Income taxes

(921)



2,578


Share-based compensation expense

601



2,398


Other operating activities

479



(2,293)


Net cash provided by (used in) operating activities

27,889



(4,690)






Investing activities:




Additions to property, plant and equipment

(5,412)



(8,059)


Net proceeds from sale of Traex

-



158


Proceeds from asset sales and other

131



65


Net cash used in investing activities

(5,281)



(7,836)






Financing activities:




Net (repayments) on ABL credit facility

-



(2,105)


Other repayments

(9,551)



(4,673)


Other borrowings

1,234



-


Stock options exercised

253



-


Debt issuance costs and other

(880)



(19)


Net cash used in financing activities

(8,944)



(6,797)






Effect of exchange rate fluctuations on cash

106



(403)


Increase (decrease) in cash

13,770



(19,726)






Cash at beginning of period

19,577



44,309


Cash at end of period

$

33,347



$

24,583


 

 

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



Nine months ended September 30,


2012


2011

Operating activities:




Net income

$

5,359



$

21,532


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




Depreciation and amortization

30,897



32,265


Loss (gain) on asset sales and disposals

294



(6,449)


Change in accounts receivable

(6,497)



(1,813)


Change in inventories

(25,097)



(24,156)


Change in accounts payable

(12,087)



(7,183)


Accrued interest and amortization of discounts, warrants and finance fees

532



(6,309)


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

(81,338)



(8,586)


Restructuring charges

-



(828)


Accrued liabilities & prepaid expenses

7,742



4,882


Income taxes

(1,041)



(7,168)


Share-based compensation expense

2,466



4,365


Other operating activities

563



(1,211)


Net cash (used in) provided by operating activities

(43,630)



2,144






Investing activities:




Additions to property, plant and equipment

(17,244)



(26,457)


Net proceeds from sale of Traex

-



13,000


Proceeds from asset sales and other

550



5,264


Net cash used in investing activities

(16,694)



(8,193)






Financing activities:




Other repayments

(19,513)



(4,770)


Other borrowings

1,234



-


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

293



478


Debt issuance costs and other

(13,034)



(462)


Net cash provided by (used in) financing activities

35,378



(45,957)






Effect of exchange rate fluctuations on cash

2



331


Decrease in cash

(24,944)



(51,675)






Cash at beginning of period

58,291



76,258


Cash at end of period

$

33,347



$

24,583


 

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 September 30,



2012


2011



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

209,150



$

-



$

209,150



$

207,246



$

-



$

207,246


Freight billed to customers


1,015



-



1,015



511



-



511


Total revenues


210,165



-



210,165



207,757



-



207,757


Cost of sales


158,956



2,342



156,614



162,873



1,981



160,892


Gross profit


51,209



(2,342)



53,551



44,884



(1,981)



46,865


Selling, general and administrative expenses


26,887



1,444



25,443



26,739



2,983



23,756


Special charges


-



-



-



(232)



(232)



-


Income from operations


24,322



(3,786)



28,108



18,377



(4,732)



23,109


Other (expense) income


(195)



-



(195)



2,237



(81)



2,318


Earnings before interest and income taxes


24,127



(3,786)



27,913



20,614



(4,813)



25,427


Interest expense


8,720



-



8,720



10,559



-



10,559


Income before income taxes


15,407



(3,786)



19,193



10,055



(4,813)



14,868


Provision for income taxes


546



(26)



572



2,928



-



2,928


Net income


$

14,861



$

(3,760)



$

18,621



$

7,127



$

(4,813



$

11,940















Net income per share:













Basic


$

0.71



$

(0.18)



$

0.89



$

0.35



$

(0.24)



$

0.59


Diluted


$

0.70



$

(0.18)



$

0.87



$

0.34



$

(0.23)



$

0.58















Weighted average shares:













Outstanding


20,896







20,182






Diluted


21,360







20,715






 

 



Three months ended

September 30, 2012


Three months ended September 30, 2011

Special Items Detail  - (Income) Expense:


Severance and Other (1)


Total Special Items


Abandoned

Property (2)


Sale of Traex (3)


Restructuring

Charges (4)


CEO Transition Expenses


Total Special Items

Cost of sales


$

2,342



$

2,342



$

1,827



$

-



$

154



$

-



$

1,981


SG&A


1,444



1,444



892



-



-



2,091



2,983


Special charges


-



-



-



-



(232)



-



(232)


Other (income) expense


-



-



-



81



-



-



81


Income taxes


(26)



(26)



-



-



-



-



-


Total Special Items


$

3,760



$

3,760



$

2,719



$

81



$

(78)



$

2,091



$

4,813



(1) Severance and other relates to implementation of our new strategic plan.

(2) Estimate accrued for an ongoing unclaimed property audit.

(3) Expenses are related to 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, Louisiana, manufacturing facility.

 


Table 2

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

(dollars in thousands, except per-share amounts)

(unaudited)



Nine months ended September 30,



2012


2011



As Reported


Special Items


As Adjusted


As Reported


Special Items


As Adjusted

Net sales


$

606,226



$

-



$

606,226



$

602,274



$

-



$

602,274


Freight billed to customers


2,482



-



2,482



1,760



-



1,760


Total revenues


608,708



-



608,708



604,034



-



604,034


Cost of sales


458,096



2,342



455,754



473,168



2,024



471,144


Gross profit


150,612



(2,342)



152,954



130,866



(2,024)



132,890


Selling, general and administrative expenses


82,391



1,444



80,947



77,365



2,598



74,767


Special charges


-



-



-



(281)



(281)



-


Income from operations


68,221



(3,786)



72,007



53,782



(4,341)



58,123


Loss on redemption of debt


(31,075)



(31,075)



-



(2,803)



(2,803)



-


Other (expense) income


(359)



-



(359)



8,307



6,901



1,406


Earnings before interest and income taxes


36,787



(34,861)



71,648



59,286



(243)



59,529


Interest expense


29,085



-



29,085



32,929



-



32,929


Income before income taxes


7,702



(34,861)



42,563



26,357



(243)



26,600


Provision for income taxes


2,343



(26)



2,369



4,825



-



4,825


Net income


$

5,359



$

(34,835)



$

40,194



$

21,532



$

(243)



$

21,775















Net income per share:













Basic


$

0.26



$

(1.67)



$

1.93



$

1.07



$

(0.01)



$

1.08


Diluted


$

0.25



$

(1.64)



$

1.89



$

1.04



$

(0.01)



$

1.05















Weighted average shares:













Outstanding


20,835







20,079






Diluted


21,267







20,726







 



Nine months ended

September 30, 2012




Nine months ended September 30, 2011

Special Items Detail-(income) expense:


Finance

Fees (1)


Severance

and

Other(2)


Total

Special

Items


Sale of

Land (3)


Sale of

Traex (4)


Finance

Fees (1)


Restructuring

Charges (5)


Abandoned Property (6)


Other (7)


Total

Special

Items

Cost of sales


$

-



$

2,342



$

2,342



$

-



$

-



$

-



$

197



$

1,827



$

-



$

2,024


SG&A


-



1,444



1,444



-



-



-



-



892



1,706



2,598


Special charges


-



-



-



-



-



-



(281)



-



-



(281)


Loss on redemption of debt


31,075



-



31,075



-



-



2,803



-



-



-



2,803


Other (income) expense


-



-



-



(3,445)



(3,240)



-



-



-



(216)



(6,901)


Income taxes


-



(26)



(26)



-



-



-



-



-



-



-


Total Special Items


$

31,075



$

3,760



$

34,835



$

(3,445)



$

(3,240)



$

2,803



$

(84)



$

2,719



$

1,490



$

243



(1) Finance fees for the nine 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 nine 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) Severance and other relates to implementation of our new strategic plan.

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

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

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

(6) Estimate accrued for an ongoing unclaimed property audit.

(7) SG&A includes CEO transition expenses of $2,511, net of an equipment credit of $805.

 

 

Table 3

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

(dollars in thousands)












Three months ended September 30,


Nine months ended September 30,



2012


2011


2012


2011

Reported net income


$

14,861



$

7,127



$

5,359



$

21,532


Add:









Interest expense


8,720



10,559



29,085



32,929


Provision for income taxes


546



2,928



2,343



4,825


Depreciation and amortization


10,073



10,357



30,897



32,265


EBITDA


34,200



30,971



67,684



91,551


Add: Special items before interest and taxes


3,786



4,813



34,861



243


Adjusted EBITDA


$

37,986



$

35,784



$

102,545



$

91,794


 

 

Table 4

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

(dollars in thousands)



Three months ended September 30,


Nine months ended September 30,



2012


2011


2012


2011










Net cash provided by (used in) operating activities


$

27,889



$

(4,690)



$

(43,630)



$

2,144


Capital expenditures


(5,412)



(8,059)



(17,244)



(26,457)


Net proceeds from sale of Traex


-



158



-



13,000


Proceeds from asset sales and other


131



65



550



5,264


Free Cash Flow


$

22,608



$

(12,526)



$

(60,324)



$

(6,049)


 


Table 5

Summary Business Segment Information

(dollars in thousands)



Three months ended September 30,


Nine months ended September 30,



2012


2011


2012


2011

Net Sales:









Glass Operations (1)


$

189,860



$

190,813



$

551,679



$

547,353


Other Operations (2)


19,427



16,597



55,123



55,448


Eliminations


(137)



(164)



(576)



(527)


Consolidated


$

209,150



$

207,246



$

606,226



$

602,274











Segment Earnings Before Interest & Taxes

    (Segment EBIT) (3) :









Glass Operations (1)


$

33,970



$

29,801



$

94,259



$

77,165


Other Operations (2)


4,356



2,978



11,097



9,619


Segment EBIT


$

38,326



$

32,779



$

105,356



$

86,784











Reconciliation of Segment EBIT to Net Income:









Segment EBIT


$

38,326



$

32,779



$

105,356



$

86,784


Retained corporate costs (4)


(10,413)



(7,352)



(33,708)



(27,255)


Consolidated Adjusted EBIT


27,913



25,427



71,648



59,529


Loss on redemption of debt


-



-



(31,075)



(2,803)


Severance and other


(3,786)



-



(3,786)



-


Gain (expense) on sale of Traex assets


-



(81)



-



3,240


Gain on sale of land


-



-



-



3,445


Equipment credit


-



-



-



1,021


Restructuring charges


-



78



-



84


CEO transition expenses


-



(2,091)



-



(2,511)


Abandoned property


-



(2,719)



-



(2,719)


Special Items before interest and taxes


(3,786)



(4,813)



(34,861)



(243)


Interest expense


(8,720)



(10,559)



(29,085)



(32,929)


Income taxes


(546)



(2,928)



(2,343)



(4,825)


Net income


$

14,861



$

7,127



$

5,359



$

21,532











Depreciation & Amortization:









Glass Operations (1)


$

9,735



$

9,999



$

29,761



$

30,779


Other Operations (2)


10



11



32



257


Corporate


328



347



1,104



1,229


Consolidated


$

10,073



$

10,357



$

30,897



$

32,265



(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.



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