Delaware
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1-35672
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20-5234618
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(State of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act.
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act.
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
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Exhibit
Number
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Description | |
99.1
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Press Release dated May 1, 2015
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BERRY PLASTICS GROUP, INC. | |||
(Registrant) | |||
May 1, 2015
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By:
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/s/ Jason K. Greene | |
Jason K. Greene | |||
Executive Vice President and General Counsel | |||
NEWS RELEASE
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|||
Investor Contact:
Dustin Stilwell
812.306.2964
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Media Contact:
Eva Schmitz
812.306.2424
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dustinstilwell@berryplastics.com | evaschmitz@berryplastics.com | |||
●
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Recorded net income per diluted share of $0.31 and adjusted net income per diluted share of $0.42 for the March 2015 quarter
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●
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Increased Operating EBITDA by 10 percent to $210 million for the March 2015 quarter compared to $191 million in the March 2014 quarter
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Generated $112 million of cash flow from operations and adjusted free cash flow of $71 million for the March 2015 quarter
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Adjusted free cash flow of $304 million and adjusted EBITDA of $831 million for the four quarters ended March 2015
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●
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Increased fiscal year 2015 adjusted free cash flow guidance nearly 10 percent to $350 million
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Quarterly Period Ended (Unaudited)
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||||||||||||||||
Net sales (in millions of dollars)
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March 28, 2015
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March 29, 2014
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$ Change
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% Change
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||||||||||||
Rigid Open Top
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$ | 251 | $ | 256 | $ | (5 | ) | (2 | )% | |||||||
Rigid Closed Top
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380 | 360 | 20 | 6 | % | |||||||||||
Engineered Materials
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344 | 368 | (24 | ) | (7 | ) % | ||||||||||
Flexible Packaging
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249 | 226 | 23 | 10 | % | |||||||||||
Total net sales
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$ | 1,224 | $ | 1,210 | $ | 14 | 1 | % |
Two Quarterly Periods Ended (Unaudited)
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||||||||||||||||
Net sales (in millions of dollars)
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March 28, 2015
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March 29, 2014
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$ Change
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% Change
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||||||||||||
Rigid Open Top
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$ | 508 | $ | 517 | $ | (9 | ) | (2 | )% | |||||||
Rigid Closed Top
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753 | 692 | 61 | 9 | % | |||||||||||
Engineered Materials
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693 | 710 | (17 | ) | (2 | ) % | ||||||||||
Flexible Packaging
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490 | 431 | 59 | 14 | % | |||||||||||
Total net sales
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$ | 2,444 | $ | 2,350 | $ | 94 | 4 | % |
March
28, 2015 |
September
27, 2014 |
|||||||
(in millions of dollars)
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(Unaudited)
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|||||||
Term loans
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$ | 2,395 | $ | 2,505 | ||||
Revolving line of credit
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— | — | ||||||
5½% second priority notes
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500 | 500 | ||||||
9¾% second priority notes
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800 | 800 | ||||||
Capital leases and other
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115 | 113 | ||||||
Total debt
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$ | 3,810 | $ | 3,918 | ||||
Less: cash and cash equivalents
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(119 | ) | (129 | ) | ||||
Net debt
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$ | 3,691 | $ | 3,789 | ||||
Quarterly
Period Ended
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Two Quarterly
Periods Ended
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|||||||||||||||
March 28, 2015
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March 29, 2014
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March 28, 2015
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March 29, 2014
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|||||||||||||
Net sales
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$ | 1,224 | $ | 1,210 | $ | 2,444 | $ | 2,350 | ||||||||
Costs and expenses:
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||||||||||||||||
Cost of goods sold
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1,000 | 1,023 | 2,037 | 1,987 | ||||||||||||
Selling, general, and administrative
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86 | 82 | 171 | 159 | ||||||||||||
Amortization of intangibles
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23 | 25 | 48 | 51 | ||||||||||||
Restructuring and impairment charges
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3 | 3 | 8 | 13 | ||||||||||||
Operating income
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112 | 77 | 180 | 140 | ||||||||||||
Debt extinguishment
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— | 2 | — | 2 | ||||||||||||
Other expense (income), net
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1 | — | — | (1 | ) | |||||||||||
Interest expense, net
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52 | 57 | 105 | 112 | ||||||||||||
Income before income taxes
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59 | 18 | 75 | 27 | ||||||||||||
Income tax expense
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21 | 6 | 24 | 9 | ||||||||||||
Consolidated net income
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$ | 38 | $ | 12 | $ | 51 | $ | 18 |
Net income per share:
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||||||||||||||||
Basic
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$ | 0.32 | $ | 0.10 | $ | 0.43 | $ | 0.15 | ||||||||
Diluted
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0.31 | 0.10 | 0.41 | 0.15 | ||||||||||||
Outstanding weighted-average shares: (in millions)
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||||||||||||||||
Basic
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119.0 | 116.6 | 118.7 | 116.3 | ||||||||||||
Diluted
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124.1 | 121.7 | 123.4 | 120.5 | ||||||||||||
Quarterly
Period Ended
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Two Quarterly
Periods Ended
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|||||||||||||||
March 28, 2015
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March 29, 2014
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March 28, 2015
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March 29, 2014
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|||||||||||||
Consolidated net income
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$ | 38 | $ | 12 | $ | 51 | $ | 18 | ||||||||
Currency translation
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(20 | ) | (3 | ) | (34 | ) | (4 | ) | ||||||||
Interest rate hedges
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(13 | ) | 3 | (20 | ) | 3 | ||||||||||
Provision for income taxes related to other comprehensive income items
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4 | (1 | ) | 6 | (1 | ) | ||||||||||
Comprehensive income
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$ | 9 | $ | 11 | $ | 3 | $ | 16 |
March 28, 2015
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September 27, 2014
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|||||||
Assets:
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(Unaudited)
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|||||||
Cash and cash equivalents
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$ | 119 | $ | 129 | ||||
Accounts receivable, net
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481 | 491 | ||||||
Inventories
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609 | 604 | ||||||
Other current assets
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279 | 208 | ||||||
Property, plant, and equipment, net
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1,315 | 1,364 | ||||||
Goodwill, intangibles assets, and other long-term assets
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2,411 | 2,472 | ||||||
Total assets
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$ | 5,214 | $ | 5,268 | ||||
Liabilities and stockholders' equity (deficit)
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||||||||
Current liabilities, excluding debt
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687 | 709 | ||||||
Current and long-term debt
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3,810 | 3,918 | ||||||
Other long-term liabilities
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790 | 742 | ||||||
Redeemable non-controlling interest
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13 | 13 | ||||||
Stockholders’ deficit
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(86 | ) | (114 | ) | ||||
Total liabilities and stockholders' equity (deficit)
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$ | 5,214 | $ | 5,268 |
Two Quarterly
Periods Ended
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||||||||
March 28, 2015
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March 29, 2014
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|||||||
Cash flows from operating activities:
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||||||||
Consolidated net income
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$ | 51 | $ | 18 | ||||
Depreciation and amortization
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176 | 170 | ||||||
Other non-cash items
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38 | 28 | ||||||
Working capital
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(53 | ) | 34 | |||||
Net cash from operating activities
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212 | ] | 250 | |||||
Cash flows from investing activities:
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||||||||
Additions to property, plant, and equipment
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(79 | ) | (114 | ) | ||||
Proceeds from sale of assets
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13 | 1 | ||||||
Acquisitions of businesses, net of cash acquired
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— | (96 | ) | |||||
Net cash from investing activities
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(66 | ) | (209 | ) | ||||
Cash flows from financing activities:
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||||||||
Proceeds from long-term borrowings
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— | 1,126 | ||||||
Repayment of long-term borrowings
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(125 | ) | (1,150 | ) | ||||
Proceeds from issuance of common stock
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13 | 10 | ||||||
Debt financing costs
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— | (11 | ) | |||||
Payment of tax receivable agreement
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(39 | ) | (32 | ) | ||||
Net cash from financing activities
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(151 | ) | (57 | ) | ||||
Effect of exchange rate changes on cash
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(5 | ) | — | |||||
Net change in cash and cash equivalents
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(10 | ) | (16 | ) | ||||
Cash and cash equivalents at beginning of period
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129 | 142 | ||||||
Cash and cash equivalents at end of period
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$ | 119 | $ | 126 |
Quarterly
Period Ended
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Two Quarterly
Periods Ended
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|||||||||||||||
March 28, 2015
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March 29, 2014
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March 28, 2015
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March 29, 2014
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Net sales:
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Rigid Open Top
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$ | 251 | $ | 256 | $ | 508 | $ | 517 | ||||||||
Rigid Closed Top
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380 | 360 | 753 | 692 | ||||||||||||
Engineered Materials
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344 | 368 | 693 | 710 | ||||||||||||
Flexible Packaging
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249 | 226 | 490 | 431 | ||||||||||||
Total
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$ | 1,224 | $ | 1,210 | $ | 2,444 | $ | 2,350 | ||||||||
Operating income:
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Rigid Open Top
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$ | 18 | $ | 6 | $ | 25 | $ | 19 | ||||||||
Rigid Closed Top
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41 | 33 | 62 | 63 | ||||||||||||
Engineered Materials
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35 | 32 | 67 | 57 | ||||||||||||
Flexible Packaging
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18 | 6 | 26 | 1 | ||||||||||||
Total
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$ | 112 | $ | 77 | $ | 180 | $ | 140 | ||||||||
Depreciation and amortization:
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Rigid Open Top
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$ | 22 | $ | 23 | $ | 45 | $ | 46 | ||||||||
Rigid Closed Top
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31 | 31 | 67 | 61 | ||||||||||||
Engineered Materials
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18 | 18 | 35 | 37 | ||||||||||||
Flexible Packaging
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14 | 13 | 29 | 26 | ||||||||||||
Total
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$ | 85 | $ | 85 | $ | 176 | $ | 170 | ||||||||
Restructuring and impairment charges:
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||||||||||||||||
Rigid Open Top
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$ | 1 | $ | 1 | $ | 2 | $ | 2 | ||||||||
Rigid Closed Top
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2 | 1 | 3 | 1 | ||||||||||||
Engineered Materials
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— | 1 | — | 4 | ||||||||||||
Flexible Packaging
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— | — | 3 | 6 | ||||||||||||
Total
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$ | 3 | $ | 3 | $ | 8 | $ | 13 | ||||||||
Business optimization costs (1) :
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Rigid Open Top
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$ | 5 | $ | 15 | $ | 11 | $ | 20 | ||||||||
Rigid Closed Top
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1 | 4 | 8 | 7 | ||||||||||||
Engineered Materials
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1 | 1 | 3 | 3 | ||||||||||||
Flexible Packaging
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3 | 6 | 6 | 10 | ||||||||||||
Total
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$ | 10 | $ | 26 | $ | 28 | $ | 40 | ||||||||
Operating EBITDA:
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Rigid Open Top
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$ | 46 | $ | 45 | $ | 83 | $ | 87 | ||||||||
Rigid Closed Top
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75 | 69 | 140 | 132 | ||||||||||||
Engineered Materials
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54 | 52 | 105 | 101 | ||||||||||||
Flexible Packaging
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35 | 25 | 64 | 43 | ||||||||||||
Total
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$ | 210 | $ | 191 | $ | 392 | $ | 363 |
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Quarterly
Period Ended
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Four Quarters
Ended
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|||||||||||
March 28, 2015
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March 29, 2014
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March 28, 2015
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||||||||||
Operating income
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$ | 112 | $ | 77 | $ | 356 | ||||||
Add: non-cash amortization from 2006 private sale
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8 | 9 | 33 | |||||||||
Add: restructuring and impairment
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3 | 3 | 25 | |||||||||
Add: business optimization costs (1)
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10 | 26 | 68 | |||||||||
Adjusted operating income (3)
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$ | 133 | $ | 115 | $ | 482 | ||||||
Add: depreciation and amortization (2)
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77 | 76 | 331 | |||||||||
Operating EBITDA (3)
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$ | 210 | $ | 191 | $ | 813 | ||||||
Add: pro forma acquisitions
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— | 6 | ||||||||||
Add: unrealized cost savings
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— | 12 | ||||||||||
Adjusted EBITDA (3)
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$ | 210 | $ | 831 | ||||||||
Cash flow from operating activities
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$ | 112 | $ | 492 | ||||||||
Net additions to property, plant, and equipment
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(41 | ) | (149 | ) | ||||||||
Payment of tax receivable agreement
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— | (39 | ) | |||||||||
Adjusted free cash flow (3)
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$ | 71 | $ | 304 | ||||||||
Net income per diluted share
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$ | 0.31 | ||||||
Non-cash amortization from 2006 private sale (net of tax)
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0.04 | |||||||
Restructuring and impairment (net of tax)
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0.02 | |||||||
Business optimization costs (1) (net of tax)
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0.05 | |||||||
Adjusted net income per diluted share (3)
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$ | 0.42 | ||||||
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(1) Includes integration expenses, non-cash charges, and other business optimization costs.
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(2) Amortization excludes non-cash amortization from the 2006 private sale of $8 million for the March 28, 2015 quarter, $9 million for the March 29, 2014 quarter, and $33 million for the four quarters ended March 28, 2015.
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(3) Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. These non-GAAP financial measures are among the indicators used by management to measure the performance of the Company’s operations, and also among the criteria upon which performance-based compensation may be based. Adjusted EBITDA also is used by our lenders for debt covenant compliance purposes. We use Adjusted Free Cash Flow as a measure of liquidity because it assists us in assessing our Company’s ability to fund its growth through its generation of cash. Our projected Adjusted Free Cash flow for fiscal 2015 assumes $609 million of cash flow from operations less $220 million of net additions to property, plant, and equipment and $39 million of payments under our tax receivable agreement.
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Similar non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. Because of these limitations, you should consider the non-GAAP financial measures alongside other performance measures and liquidity measures, including operating income, various cash flow metrics, net income and our other GAAP results.
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