Berry Plastics Profit RisesPosted: Updated:
Evansville-based Berry Plastics Group Inc. (NYSE: BERY) is reporting fiscal full year net income of $62 million, compared to $57 million in 2013. Chief Executive Officer Jon Rich expects organic and international growth to drive future success. November 21, 2014
EVANSVILLE, Ind. - Berry Plastics Group, Inc. (NYSE:BERY) today reported results for its fourth quarter fiscal 2014, referred to in the following as the September 2014 quarter, and fiscal year 2014:
Increased net sales to $1,310 million for the September 2014 quarter, a 9 percent increase compared to the same prior year quarter and to $4,958 million for fiscal year 2014, a 7 percent increase compared to fiscal year 2013
Recorded net income per diluted share of $0.24 and adjusted net income per diluted share of $0.35 for the September 2014 quarter
Increased Operating EBITDA to $210 million for the September 2014 quarter, an 8 percent increase compared to the same prior year quarter and increased fiscal year 2014 Adjusted EBITDA to $830 million or by 5% as compared to fiscal year 2013
Increased cash from operating activities in fiscal year 2014 to $530 million from $464 million in fiscal year 2013
Fiscal year 2014 Adjusted free cash flow of $302 million, representing an adjusted free cash flow yield of over 10 percent
"In the September 2014 quarter we reported record sales for any quarterly period in the Company’s history. We generated Operating EBITDA of $210 million, which was an 8 percent increase versus the same prior year period, in the face of continued weak packaged food demand and higher raw material costs," said Jon Rich, Chairman and CEO of Berry Plastics. "Our adjusted free cash flow for fiscal year 2014 totaled $302 million, an increase of 27 percent versus the fiscal year 2013 total of $238 million."
September 2014 Quarter Results
For the September 2014 quarter, the Company’s net sales increased by 9 percent to $1,310 million from $1,204 million in the September 2013 quarter. The year-over-year increase was primarily attributed to increased selling prices due to higher material costs along with sales from businesses we acquired in the last 12 months partially offset by weak packaged food demand.
Fiscal Year 2014 Results
For fiscal year 2014, the Company’s net sales increased by 7 percent to $4,958 million as compared to $4,647 million in fiscal year 2013. The increase was primarily attributed to revenues from acquired businesses along with increases in net selling prices due to the pass through of higher raw material costs partially offset by weak packaged food demand.
Capital Structure and Adjusted Free Cash Flow
The ratio of net debt of $3,789 million to Adjusted EBITDA of $830 million for the fiscal year ended September 27, 2014 was 4.6x. The Company’s adjusted free cash flow for fiscal year 2014 was $302 million and $131 million for the September 2014 quarter. Reflecting the Company’s commitment to reduce debt and our strong free cash flow in fiscal 2014 we made a voluntary $100 million principal payment on our term loan in November 2014.
"Our continued focus on driving organic and international growth coupled with cost reduction actions taken, pave the way for success for Berry in the future. As we move forward, Berry will remain focused on our key strategic initiatives to continue to drive shareholder value," said Rich.
Looking forward, we anticipate our fiscal year 2015 adjusted free cash flow to be $320 million, after deducting the $39 million payment paid in October 2014 under the Company’s tax receivable agreement. This estimate assumes no change in plastic resin costs and $50 million of other cash costs relating to items such as; remaining costs from our fiscal 2014 cost reduction initiatives and acquisition integration costs from businesses acquired in fiscal 2014. Our investments in property, plant, and equipment are forecasted to be $230 million for fiscal year 2015. Assuming no change in short-term interest rates or refinancing activity, we estimate fiscal year 2015 cash interest will be $205 million.
Investor Conference Call
The Company will host a conference call today, November 21, 2014, at 10 a.m. Eastern Time to discuss its fourth quarter and fiscal 2014 results. The telephone number to access the conference call is (866) 244-4530 (domestic), or (703) 639-1173 (international), conference ID 1646350. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Company’s Investor Relations page at www.berryplastics.com. A replay of the conference call can also be accessed on the Investor Relations page of the website beginning November 21, 2014, at 2 p.m. Eastern Time, to November 29, 2014, by calling (888) 266-2081 (domestic), or (703) 925-2533 (international), access code 1646350.
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 $5 billion in fiscal 2014. 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.