updated: 2/1/2013 2:05:09 PM
Evansville-based Berry Plastics Group Inc. (NYSE: BERY) is reporting a fiscal first quarter loss of $10 million, compared to a loss of $31 million for the same period a year earlier. Chief Executive Officer Jon Rich says the smaller loss is partly due to aggressive cost reductions and manufacturing improvements.
February 1, 2013
EVANSVILLE, Ind. -- Berry Plastics Group, Inc. (NYSE:BERY) today reported results for its fiscal first quarter 2013 referred to below as the December 2012 quarter:
-Achieved a record for any first fiscal quarter with a December 2012 quarter
-Adjusted EBITDA of $176 million and LTM Adjusted EBITDA of $812 million with the leverage ratio (net debt/Adjusted EBITDA) at 4.9x, a reduction of 1.1x from the December 2011 quarter
-Operating EBITDA increased 5 percent and Operating EBITDA margin increased to 16.1 percent from 14.4 percent in the December 2011 quarter
-Announced the intention to obtain commitments for $1 billion of First Lien Senior Secured Term Loans to redeem the Company’s Second Priority Senior Secured Floating Notes due 2014, First Priority Senior Secured Floating Rate Notes due 2015, and 10¼% Senior Subordinated Notes due 2016
-Adjusted net income (loss) per share of $0.08 for the quarter compared to ($0.05) in the December 2011 quarter
-Adjusted free cash flow of $44 million for the December 2012 quarter
“Berry achieved an Operating EBITDA record for any December quarter, despite the continuation of challenges related to the overall state of the economy,” said Jon Rich, Chairman and CEO of Berry Plastics. “The year-over-year improvements for the December quarter were achieved primarily through manufacturing improvements, aggressive cost reduction actions taken throughout 2012 and also in the current quarter, sourcing savings, and pricing actions taken to capture the value of our products.”
December 2012 Quarter Results
For the quarter ended December 2012, the Company’s net sales declined by 6 percent to $1,072 million from $1,137 million, primarily related to the pass through of lower raw material costs. Physical volumes were flat for the December 2012 quarter versus December 2011 quarter in spite of weak demand resulting from ongoing sluggish economic activity including some modest effects from Hurricane Sandy.
Capital Structure and Adjusted Free Cash Flow
During the December 2012 quarter the Company used the proceeds from its IPO to repurchase its 11 percent Senior Subordinated Notes due in September 2016. The ratio of net debt of $3,943 million to the Adjusted EBITDA for the four quarters ended December 29, 2012 of $812 million was 4.9x. The ratio at the end of September 29, 2012 quarter was 5.5x. Adjusted free cash flow was $44 million for the December 2012 quarter. In January the Company announced its intention to obtain commitments for $1 billion of First Lien Senior Secured Term Loans, to be structured as an incremental facility under Berry’s existing term loan credit agreement. Berry intends to use the net proceeds from the borrowing to redeem its Second Priority Senior Secured Floating Rate Notes due 2014, First Priority Senior Secured Floating Rate Notes due 2015 and 10¼% Senior Subordinated Notes due 2016.
“For our March 2013 quarter, we anticipate a modest improvement in Operating EBITDA versus the prior year assuming that volumes improve in line with GDP forecasts. We remain on track to achieve our financial performance goals for 2013. As we move forward, Berry will remain focused on innovation, productivity, free cash flow generation, and further reduction of our debt,” said Rich.
About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of $4.8 billion in fiscal 2012. With world headquarters in Evansville, Indiana, the Company’s common stock is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the Company’s website at www.berryplastics.com.
Source: Berry Plastics Group Inc.