Coveris Reports Third Quarter 2017 Financial Results
- In constant currency, flat sales year over year
- Realized $15 million in productivity gains during the quarter
- Positive volume growth in continental Europe
- Sequential improvement in adjusted EBITDA
CHICAGO–(BUSINESS WIRE)–Coveris Holdings S.A. reported net sales of $628 million for the third
quarter of 2017 versus $620 million in the third quarter of 2016.
Excluding a $7 million impact of currency, the third quarter sales were
essentially flat compared with the same quarter in the prior year.
Adjusted EBITDA for the quarter was $71 million, compared to $78 million
for the same period in the prior year. The decline is primarily related
to softer volumes and product mix, particularly in the Company’s
flexibles business in the US and UK.
“Coveris third quarter results demonstrated that our financial
performance is improving despite significant challenges,” said Dimitri
Panayotopoulos, Chairman and Interim Chief Executive Officer. “We
recently announced a realignment into four more focused, leaner,
strategic business units. The trend of improvement quarter by quarter is
expected to continue as we move forward into the fourth quarter and
2018.”
Please see our Adjusted EBITDA Reconciliation attached to this press
release. Additional financial information may be found on www.coveris.com
under the Investor Relations section.
EARNINGS CALL
A conference call hosted by management to
discuss these financial results will be held on November 17, at 9:00 am,
Eastern. The conference call number is 877-407-8031 (domestic) or
201-689-8031 (international). A replay of the call will be available
after 1:30 pm, Eastern on November 17 until November 24, 2017, by
dialing 877-481-4010 (domestic) or 919-882-2331 (international) with the
conference ID of 22494.
ABOUT COVERIS
As a leading international manufacturing company,
Coveris is dedicated to providing solutions that enhance the safety,
quality and convenience of products we use every day. In partnership
with the most respected brands in the world, Coveris develops vital
products that protect everything from the food we eat, to medical
supplies, to the touch screen device in our pockets, contributing to the
lives of millions every day. Coveris is an affiliated portfolio company
of Sun Capital Partners, Inc.
FORWARD-LOOKING STATEMENTS:
Statements in this release that
are not historical are “forward-looking statements.” Forward-looking
statements may be identified by the use of forward-looking terminology
such as the words “should,” “would,” “could,” “will,” “may,” “expect,”
“believe,” “anticipate,” “attempt,” “project” and other terms with
similar meaning indicating possible future events or potential impact on
our business. You are cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management’s current
assumptions, beliefs and expectations, all of which involve a number of
business risks and uncertainties that could cause actual results to
differ materially. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve risks
and uncertainties that may affect Coveris’ operations, markets,
products, services, prices and other factors. Significant risks and
uncertainties may relate to, but are not limited to, financial,
economic, competitive, environmental, political, legal, regulatory and
technological factors. In addition, any forward-looking statements are
made only as of the date of this release, and Coveris does not intend
and does not assume any obligation to update any statements set forth in
this release.
| COVERIS HOLDINGS S.A. | ||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA | ||||||||||||
| (Expressed in millions of U.S. dollars) | ||||||||||||
| Three Months | Three Months | Nine Months | Nine Months | |||||||||
| Ended | Ended | Ended | Ended | |||||||||
| 30-Sep-17 | 30-Sep-16 | 30-Sep-17 | 30-Sep-16 | |||||||||
| U.S. GAAP Net income (loss) | $ | (16.1 | ) | $ | (27.9 | ) | $ | (46.7 | ) | $ | (69.7 | ) |
| Interest expense, net | 33.4 | 39.0 | 93.2 | 107.2 | ||||||||
| (Benefit) provision for income taxes | (4.9 | ) | (12.1 | ) | (13.1 | ) | (9.7 | ) | ||||
| Depreciation and amortization | 40.3 | 37.7 | 115.4 | 112.3 | ||||||||
| Non-GAAP EBITDA | $ | 52.7 | $ | 36.7 | $ | 148.8 | $ | 140.1 | ||||
| Non-Operational Adjustments: | ||||||||||||
| Accounting Manual Compliance | – | 0.1 | – | 0.4 | ||||||||
| (Gain) loss on disposal of assets | (0.1 | ) | 4.9 | 0.4 | 6.0 | |||||||
| Pension revaluation | – | – | – | – | ||||||||
| Foreign currency exchange (gain) loss | (4.4 | ) | 17.0 | (8.8 | ) | 55.4 | ||||||
| Other | – | 0.9 | (1.5 | ) | 1.7 | |||||||
| Total Non-Operational Adjustments | $ | (4.5 | ) | $ | 22.9 | $ | (9.9 | ) | $ | 63.5 | ||
| Special Items: | ||||||||||||
| Restructuring and related relocation costs(a) | 9.6 | 7.8 | 20.8 | 16.9 | ||||||||
| Management fees and expenses | 1.9 | 2.1 | 6.1 | 6.4 | ||||||||
| Transaction related expenses(b) | 0.9 | 0.8 | 3.1 | 1.2 | ||||||||
| Business improvement consulting cost | 10.2 | 1.6 | 27.1 | 5.5 | ||||||||
| Other expenses(c) | (0.2 | ) | 5.8 | 3.5 | 10.3 | |||||||
| Total Special Items: | 22.4 | 18.1 | 60.6 | 40.3 | ||||||||
| Non-GAAP Adjusted EBITDA | $ | 70.6 | $ | 77.7 | $ | 199.5 | $ | 243.9 | ||||
|
(a) Costs associated primarily with various restructuring activities, employee relocation expenses or employee severance costs. |
||||||||||||
| (b) Costs associated with transactions and acquisition costs. | ||||||||||||
|
(c) Costs associated with one-time information technology initiatives, declaration of force majeure by suppliers, rebranding and other infrequent expenses. |
Contacts
Coveris Holdings S.A.
Investor Contact:
Duane A. Owens,
864-641-4710
Treasurer
[email protected]
or
Media
Contact:
Chris Swalm, 864-504-6145
Marketing Communications
Manager
[email protected]
