– Solid growth despite challenging macroeconomic factors –
– Integration of Oneida and Anchor continues to be accretive –
LANCASTER, Ohio, May 28, 2013 (GLOBE NEWSWIRE) -- EveryWare Global, Inc. ("EveryWare" or the "Company") (Nasdaq:EVRY) announced today financial results for the first quarter ended March 31, 2013. Full detail of the financial results as well as Management Discussion and Analysis, or MD&A, can be found in the Company's Form 8-K filed with the SEC today.
Led by the iconic Oneida and Anchor Hocking brands, EveryWare is the leading global marketer of tabletop and food preparation products for the consumer and foodservice markets.
Highlights:
- Total revenue increased 3.1% to $99.3 million, up from $96.4 million in the first quarter of fiscal 2012
- Adjusted EBITDA(1) increased 12.0% to $11.5 million, up from $10.2 million in the first quarter of fiscal 2012
- Net income increased to $0.2 million from a net loss of $6.3 million in the first quarter of 2012
- Increased business with blue-chip customer base
- Further synergies and cost savings generated from merger of Oneida and Anchor Hocking
John Sheppard, EveryWare's CEO, stated: "This was a solid quarter for EveryWare and a great start to the year. Our financial performance in the quarter was driven by continued strength across all of our business segments despite challenging economic factors. We also continued to manage our cost structure effectively and realized increased profitability by executing our growth strategy."
| Summary of Financial Results: | ||
|
Quarter Ended March 31, |
||
| (dollars in thousands) | 2013 | 2012 |
| (unaudited) | (unaudited) | |
| Statements of Operations | ||
| Total revenue | $99,339 | $96,395 |
| Cost of sales | 73,504 | 71,353 |
| Gross margin | 25,835 | 25,042 |
| Operating expenses: | ||
| Selling, distribution and administrative expense | 20,528 | 22,763 |
| Income from operations | 5,307 | 2,279 |
| Other (income) expense | 69 | (217) |
| Interest expense including amortization of deferred finance costs | 4,139 | 9,819 |
| (Loss) income before income taxes | 1,099 | (7,323) |
| Income tax (benefit) expense | 902 | (1,040) |
| Net (loss) income | $197 | $(6,283) |
Total revenue increased $2.9 million, or 3.1%, from $96.4 million in the first quarter of 2012 to $99.3 million in the first quarter of 2013. The increase was primarily driven by a robust performance in the Consumer segment as well as increased Food Service shipments.
Total operating expenses decreased $2.2 million, or 9.8%, from $22.8 million for the first quarter of 2012 to $20.5 million for the first quarter of 2013. The decrease in expenses were largely driven by the synergies and cost savings generated as a result of the integration of the Oneida and Anchor Hocking businesses.
Adjusted EBITDA(1) increased 12.0% to $11.5 million, up from $10.2 million in the first quarter of fiscal 2012. The increase in Adjusted EBITDA was the result of increased revenue, increased gross profit as well as lower total operating expenses.
Net income increased from a net loss of $6.3 million for the first quarter of 2012 to net income of $0.2 million for the first quarter of 2013. The increase in net income was the result of increased revenue, increased gross profit, lower total operating expenses, and lower interest expense.
| (1) EBITDA Reconciliation (unaudited): | ||
|
Quarter Ended March 31, |
||
| (dollars in thousands) | 2013 | 2012 |
| (unaudited) | (unaudited) | |
| Net income (loss) | $197 | $(6,283) |
| Interest expense | 4,139 | 9,819 |
| Income tax provision | 902 | (1,040) |
| Depreciation and amortization | 3,889 | 3,277 |
| EBITDA | 9,127 | 5,773 |
| Restructuring expense(a) | 361 | 2,298 |
| Acquisition/merger-related transaction fees(b) | 664 | 419 |
| Inventory writedown(c) | 263 | 945 |
| Management fees(d) | 625 | 704 |
| Other(e) | 429 | 101 |
| Adjusted EBITDA | $11,469 | $10,240 |
| (a) Includes restructuring expenses and various professional and consulting services in connection with the identification and implementation of synergies and cost improvements, executive recruiting expense related to management changes, including hiring bonuses, and severance costs. For the quarter ended March 31, 2013, restructuring expenses primarily include $0.4 million of professional and consulting services in connection with the identification and implementation of synergies and cost improvements, including severance costs. For the quarter ended March 31, 2012, restructuring expenses primarily include $2.3 million of professional and consulting services in connection with the identification and implementation of synergies and cost improvements, including severance costs. | ||
| (b) For the quarter ended March 31, 2013, includes expenses related to the business combination transaction with ROI, including employee bonuses, and for the quarter ended March 31, 2012, includes transaction fees and expenses related to the Anchor Merger in March of 2012. | ||
| (c) Inventory writedown represents adjustments for FIFO inventory valuations, lower-of-cost-or-market valuations and the increase (decrease) in the obsolete inventory reserve, which is a component of cost of sales. | ||
| (d) Represents management fees and reimbursed expenses paid to Monomoy for management services provided, to the extent not added back as a restructuring expense or acquisition/ merger-related transaction fees. | ||
| (e) Primarily represents foreign exchange gains and losses, a one-time writedown of accounts receivable, gains and losses on the disposal of fixed assets and non-cash compensation expense, when applicable. | ||
About EveryWare
EveryWare (Nasdaq:EVRY) is a leading global marketer of tabletop and food preparation products for the consumer and foodservice markets, with operations in the United States, Canada, Mexico, Latin America, Europe and Asia. Its global platform allows it to market and distribute internationally its total portfolio of products, including bakeware, beverageware, serveware, storageware, flatware, dinnerware, crystal, buffetware and hollowware; premium spirit bottles; cookware; gadgets; candle and floral glass containers; and other kitchen products, all under a broad collection of widely-recognized brands. Driven by devotion to design, EveryWare is recognized for providing quality tabletop and kitchen solutions through its consumer, foodservice, specialty and international channels. EveryWare was formed through the merger of Anchor Hocking, LLC and Oneida Ltd. in March of 2012. Additional information can be found on EveryWare's Investor Relations Website: http://investors.everywareglobal.com/
FORWARD LOOKING STATEMENTS
The Company makes forward-looking statements in this Earnings Release. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements may include statements relating to:
- the future financial performance of the Company;
- expansion plans and opportunities; and
- other statements preceded by, followed by or that include the words "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target" or similar expressions.
These forward-looking statements are based on information available as of the date of this Current Report on Form 8-K, and current expectations, forecasts and assumptions, and involve a number of risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements.