ATLANTA, Oct. 20 /PRNewswire-FirstCall/ -- BWAY Holding Company, a leading North American supplier of general line rigid containers (the "Company"), today confirmed its prior guidance from May of 2010 with respect to Adjusted EBITDA for the fiscal year ending September 30, 2010 of between $138 million and $142 million. In addition, the Company estimates that cash and cash equivalents at September 30, 2010 were approximately $100 million.
Subsequent to September 30, 2010, the Company utilized $41.5 million in cash to purchase Plastican, Inc. on October 8, 2010. Plastican is an innovator and manufacturer of highly engineered rigid plastic packaging, specializing in 1.0 to 6.5 gallon open-head plastic pails, covers and gaskets. Plastican is headquartered in Leominster, Massachusetts and has additional facilities in Dallas, Texas, Macon, Georgia and Phoenix, Arizona.
Use of Non-GAAP Financial Measures
"Adjusted EBITDA" means net income or loss adjusted for, to the extent deducted or added in calculating net income or loss, as the case may be: interest expense, income tax expense, depreciation and amortization, restructuring expenses, loss on extinguishment of debt, business acquisition costs, IPO-related expenses, adjustment to bad debt expense, stock-based compensation, transaction costs associated with the June 2010 merger transaction with affiliates of Madison Dearborn Partners (the "Merger"), non-cash charges related to inventory carrying value, loss on foreign exchange transactions and certain other items related to the Merger.
Adjusted EBITDA is not a measurement recognized under GAAP. Adjusted EBITDA differs from the term "EBITDA" as it is commonly used. We present Adjusted EBITDA because it is a measure management uses to assess financial performance. Adjusted EBITDA is also a metric used in our management short-term incentive plan. We also believe that Adjusted EBITDA provides investors with alternative methods for assessing our operating results in a manner that enables them to more thoroughly evaluate our performance. This non-GAAP measures also provide a baseline for assessing our future results. BWAY management uses these non-GAAP measures for the same purpose. The non-GAAP measures are provided to give investors access to the types of measures that we use in analyzing our results. While providing useful information, Adjusted EBITDA should not be considered in isolation or as a substitute for consolidated statements of operations or cash flows prepared in accordance with GAAP and should not be construed as an indication of our operating performance or as a measure of liquidity. Adjusted EBITDA may have material limitations as performance measures because they exclude items that are necessary elements of our costs and operations. In addition, "Adjusted EBITDA" presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
About BWAY Holding Company
BWAY Holding Company is a leading North American supplier of general line rigid containers. The Company operates 23 plants (including Plastican) throughout the United States and Canada serving industry leading customers on a national basis.
Cautionary Note Regarding Estimated Financial Data and Forward-Looking Statements
Estimates of results are inherently uncertain and subject to change, and we undertake no obligation to update this information. Our estimates contained in this press release may differ from actual results. Actual results remain subject to the completion of management's and the audit committee's final review, as well as the year-end audit by our registered independent public accountants. In light of the foregoing, investors are cautioned not to place undue reliance on the estimates. The estimates set forth above were prepared by our management and are based upon a number of assumptions.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and is subject to substantial risks, uncertainties and assumptions. You should not place reliance on these statements. Forward-looking statements include information concerning the Company's liquidity and the Company's possible or assumed future results of operations, including descriptions of the Company's business strategies. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors the Company believes are appropriate in these circumstances. As you read and consider this document, you should understand that these statements are not guarantees of performance or results. Many factors could affect the Company's actual performance and results and could cause actual results to differ materially from those expressed in the forward-looking statements. Please refer to the Company's Form 10-K filing for the fiscal year ended September 27, 2009, and the Company's other filings with the United States Securities and Exchange Commission, for a discussion of other factors that may affect future performance or results.
SOURCE BWAY Holding Company