LBY June Management Presentation...(1) NPD Group Retail Tracking Service, NPD survey and management...
Transcript of LBY June Management Presentation...(1) NPD Group Retail Tracking Service, NPD survey and management...
Libbey Inc.
June 2017
Management
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Jim BurmeisterVice President, Chief Financial Officer
Bill FoleyChairman and Chief Executive Officer
Material presented at this meeting includes forward-lookingstatements about Libbey Inc. These statements are subject torisks and uncertainties, including market conditions, competitive pressures, the value of the U.S. dollar and significant cost increases.
Please refer to the Company’s Form 10-K forfiscal year-end December 31, 2016, filed onMarch 3, 2017, for further information.
Cautionary statement
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• Global tabletop leadership; one of the world’s largest global glass manufacturers, growing in tableware and flatware
� Leading market positions in U.S. & Canada and Latin America and across multiple sales channels: foodservice, retail and B2B
� #1 U.S. foodservice business drives significant recurring revenue and profitability(1)
� Strong customer relationships include North America’s largest foodservice distributors and most recognized retail names
• Customer-centric growth strategy focused on growth and operational and organizational excellence
• Simplifying supply chain to improve manufacturing flexibility and ROIC(2)
• Strong liquidity and credit profile provide financial flexibility
• Balanced approach to capital allocation prioritizes investing in the business, achieving target leverage and returning Free Cash Flow(2) to shareholders
Investment highlights
3(1) Management estimates(2) See Appendix: Definition and reconciliation of non-GAAP measures for definition of ROIC and Free Cash Flow
Libbey at a glance
A global tableware leader selling manufactured and sourced glass, ceramic and metal tableware. #2 global glass beverageware position, #1 in the Americas!(1)
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Customers include some of North America’s largest foodservice distributors and most recognized retail names
$793.4 million of net sales in 2016 sold to Foodservice, Retail and B2B channels globally
Libbey sells more than 1.2 billion tableware pieces annually
Our products are central to lifestyle and celebrations at home, in restaurants and in over 100 countries around the world
NYSE MKT: LBY
(1) Management estimate
Libbey competes in four product categories
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Category Products Manufacturing
Glass Tableware
• Tumblers, stemware, mugs, bowls, salt shakers, shot glasses, canisters, candleholders, handmade tableware
In-house/Sourced
Other Glass Products
• Bakeware, blender jars, mixing bowls, floral, candle, and washing machine windows
In-house
Dinnerware• Plates, bowls, platters, cups,
saucers, and other tableware accessories
Sourced
Metalware
• Knives, forks, spoons, serving utensils, serving trays, pitchers, and other metal tableware accessories
Sourced
Libbey goes to market in three key channels
• Extensive network of ~500 of the finest U.S. foodservice distributors who sell to restaurants, bars, hotels and travel and tourism venues
• #1 glass beverageware supplier and #2 dinnerware and flatware supplier in the U.S. and Canada(1)
• A high percentage of foodservice glass tableware sales are replacements, driving a predictable revenue stream
• ~ 60% market share in U.S. foodservice glass beverageware(1)
• Customers of this diverse channel include:
- Marketers of popular household décor items, like candles and floral applications
- Top household appliance manufacturers purchasing glass blender jars, mixing bowls and washing machine windows
- Marketers who apply logos to Libbey glassware for resale to breweries, distilleries, soft drink companies and others
Foodservice
Business-to-Business (B2B)
• Customers include leading mass merchants, department stores, upscale retailers, grocers and internet retailers
• North America’s #1 retail supplier of casual glass beverageware and most recognized glass beverageware brand; an important driver of profitable factory utilization (2)
• ~40% market share in U.S. casual glass beverageware, branded and private label(2)
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No single customer accounts for 10% or more of consolidated net sales
(1) Management estimate(2) NPD Group Retail Tracking Service and management estimates
Retail
Established industry leadership and global presence
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Million Total Square Feet
7Warehousing /
DCs
8Manufacturing
Facilities
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West Chicago, IL
Toledo, OH
Shreveport, LA
Monterrey, Mexico
Laredo, TX
Marinha Grande, Portugal
Leerdam, Netherlands Langfang,
China
Manufacturing / Warehousing / Distribution CentersWarehousing / Distribution Centers
Headquarters
(1) In the first quarter of 2017, net sales and related costs for certain countries were re classified between segments to align with changes in business unit responsibilities. Accordingly, 2016 segment results have been reclassified to conform with the revise structure. The revised 2016 segment results do not affect any previously reported consolidated financial results.
(2) Represents percentage of Segment EBIT only
Other
1%
EMEA
2%
Latin America
14%
U.S. & Canada
83%
Latin America
19%
EMEA
16%
Other
4%
U.S. & Canada
61%
2016 Net Sales by Segment (1)
2016 Segment EBIT(1)(2)
• The U.S. foodservice market is large and dining out remains popular in consumer surveys
• Consumer confidence is strong and discretionary income is rising
• Foodservice market leader recognized for excellence by leading foodservice distributors:
• Strong foodservice network and in-house salesforce sell to both established restaurants and new entrants throughout the country
• Steady pace of innovation and critical profitability of beverageware lead to lower price sensitivity; price increases in 43 of last 47 years
• Exceptional depth and breadth of product line and sizeable installed tableware base provide significant advantage
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Foodservice channel: positioned for continued strength
• U.S. casual glass beverageware leader; market share at ~40% is more than twice the next competitor(1)
• Highly recognized brands and enhanced ecommerce capabilities position the company for continued leadership
• Established relationships with major retailers provide a platform to launch innovative products aligned with consumer wants and needs
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Retail channel: improving competitive positioning
(1) NPD Group Retail Tracking Service, NPD survey and management estimates, includes branded and private label
• The business-to-business channel offers diverse opportunities for growth and capacity utilization
� Established global supplier of logo glassware for promotions and OEM supplier to leading appliance manufacturers
� Growing in houseware applications, including decorated beverageware and glass components for candles and floral applications
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B2B channel: diverse opportunities for growth
Organizational Excellence
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Libbey has three key strategic focus areas:
Growth
Operational Excellence
1.
2.
3.
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Growth1• New product innovation and e-commerce strategy to drive growth and market
expansion
• Balanced focus in core foodservice, retail and B2B channels
• New product development process grounded in market insights
� Differentiated offerings aligned with current consumer wants and needs
� Expansion in underserved and emerging categories
- Foodservice: underpenetrated categories, adjacent venues
- Retail: adjacent categories; good, better, best offerings
• Significant pipeline of new products targeted to existing and new segments
� More than 200 new products targeted to retail launched at International Home & Housewares show in March 2017
� 350 new products targeted to foodservice launched at National Restaurant Association show in May 2017
• E-commerce business launching in early 2H17
� Enhances capabilities to maintain retail market leadership as consumers increasingly purchase on the internet in addition to in traditional brick & mortar retail stores
Lifestyle trend inspired launch of over 200 new Libbey retail products
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2017 International Home and Housewares Show 1
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2017 International Home and Housewares Show 1
Robust new product pipeline to drive growth in coming years
Four major introductions and the launch of 350 new Libbey foodservice products
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2017 National Restaurant Association Show 1
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2017 National Restaurant Association Show 1Insight-driven product solutions support customer success
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Product Innovation and E-commerce1Product innovation and e-commerce strategy to drive retail growthAddresses retail headwinds of consumer purchase migration to internet and strong price
competition in commoditized products
Upgraded e-commerce capabilities
Major new product launches
Q3 2017 ecommerce “go live”
Retail recovery and growth
Explore other channel potential?
• Not going it alone – experienced consulting partner
supporting e-commerce business development
• Targets existing retailers and major web based retailers
for their e-commerce platforms
• Extends retailer aisles – release of shelf-space
constraints dramatically increases exposure for existing
products and new product launches
3 Year Ramp Up
• Ongoing cost reduction initiatives to remove non-value-added complexity and review of opportunities to optimize global network
• Simplifying supply chain to improve ROIC(1)
� Product portfolio optimization in 2016
- Discontinued underperforming SKUs (20% of global product portfolio)
- Improved product lifecycle management processes
- Improved sales force focus and reduced costs
� Furnace consolidations and technology upgrades in EMEA and Latin America will be complete mid-year; other geographies under review
- Reduces capital commitments for future furnace rebuilds
- Lowers operating costs
- Increases asset utilization
• Initiating planning for new ERP implementation
- ERP implementation will be cloud based and customization-lite to reduce cost and risk, both for the implementation and for future operations and upgrades
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Operational Excellence2
(1) See Appendix: Definition and reconciliation of non-GAAP measures for definition of ROIC
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Organizational Excellence3
• Organizational re-alignment to support new strategy
� Selective new talent in key roles in new product development, marketing, sales and supply chain
� Redesign of sales and marketing organization, including updates to incentive compensation
• Develop winning teams that foster high performance and live our core values of:
� Continuous improvement
� Customer focus
� Development
� Performance
� Respect and Teamwork
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Invest in the
business
Maintain financial strength
and flexibility
Return capital to investors
• Support/accelerate the organic growth of our business
• Selectively consider acquisitions
• Develop or invest in technologies and manufacturing capabilities
• Target to return ~50% of Free Cash Flow(1) to shareholders for period 2015 - 2017
- More than 50% distributed 2015-2016: $37MM
• Increased common dividend; initiated at annual $0.44/share in 2015 and increased to $0.46/share in 2016
- 2% dividend increase in 2017 to $0.47/share
• Share repurchase authorization increased to 1.5 million shares in 2015
- 524K shares repurchased 2015-2016
• Target Debt Net of Cash to Adjusted EBITDA ratio(1) range of 2.5x – 3.0x
• Ability to flex up or down
• Continuing to prioritize debt pay down to move toward target range; repaid $24.4 million of Term Loan B in 2016
(1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA; and definition of Free Cash Flow
Balanced approach to capital allocation
• Flexible capital structure
� $404MM senior secured Term Loan B matures 2021
- LIBOR plus 300 bps (~4.00% at 3/31/17)
- No financial covenants
- $150MM accordion option
� $100MM ABL facility matures 2019
- LIBOR plus 150-200 bps
• Improved interest coverage
� Significant debt paydown and borrowing rate reductions
� $220MM of Term Loan B swapped: ~50% floating rate exposure
• Substantial deleveraging despite investments to strengthen the business
• Fully funded U.S. pension in 2012, lowering annual cash contributions
� ~$8MM estimated global cash contribution for 2017
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6.4
4.3
3.3 3.0 3.0 2.83.2 3.3 3.1
2008 2009 2010 2011 2012 2013 2014 2015 2016
1.2 1.4 2.5 2.6
3.5 4.2
5.3 6.3
5.3
2008 2009 2010 2011 2012 2013 2014 2015 2016
Adjusted EBITDA(1) / Interest Expense
Debt Net of Cash / Adjusted EBITDA(1)
(1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA
Capital structure and leverage policy provide financial flexibility
Market leadership and business model drive strong recurring revenue stream and Adjusted EBITDA
(1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA, and Adjusted EBITDA Margin
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$ in millions
Historical Net Sales Historical Adjusted EBITDA(1)
$810
$749
$800
$817$825 $819
$852
$822
$793
2008 2009 2010 2011 2012 2013 2014 2015 2016
$85$90
$115 $113
$132 $134
$122$116
$112
2008 2009 2010 2011 2012 2013 2014 2015 2016
• Strong cash generation and liquidity
� $34MM cash on hand at 12/31/16
� $89 MM ABL availability at 12/31/16
• Seasonal trade working capital needs
� Average $35-$40 MM peak to trough
swing in quarter-end trade working capital
each year(1)
• Capital expenditures on average about equal
to depreciation & amortization
� ~$30 MM growth investment for ClearFire®
glass manufacturing technology over
2014-2015
• Flexibility to selectively pursue M&A
opportunities
• No significant long-term debt due until Term
Loan B in 2021
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2012 2013 2014 2015 2016
Total of Cash and ABL
Availability (MM)
Cash ABL Availability
0
10
20
30
40
50
60
2012 2013 2014 2015 2016
Capital Expenditures, Depreciation & Amortization
Capital Expenditures Depreciation & Amortization
$ M
illi
on
s
(1) Trade working capital is defined as net accounts receivable plus net inventories less accounts payable as also noted in Appendix: Definition and reconciliation of non-GAAP measures
Significant liquidity resources and moderate near-term funding obligations
$136$113
$142 $140 $149
Recent performance Q1 2017 vs. Q1 2016
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(1)See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and Adjusted EBITDA Margin; definition of constant currency; and Free Cash Flow
(2)Trade working capital is defined as net accounts receivable plus net inventories less accounts payable as also noted in Appendix: Definition and reconciliation of non-GAAP measures
Q1 2017 Highlights
• Net sales of $173 million and Adjusted
EBITDA (1) of $6.2 million
• Headwinds in the quarter:
� challenging macroeconomic trends,
intensified competitive
environment, price/mix
� currency impacts(1) (primarily
Mexican peso), normal Mexico
natural gas hedge fluctuations
� expected impact of planned furnace
rebuilds and technology
investments
• Reduced trade working capital (2) by ~$28
million year-over-year
• Paid down ~$6.1 million debt in the
quarter
• ~$2.5 million of Free Cash Flow(1)
returned to shareholders via dividend
$183 $173
$23
$6
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2016 2017
Net Sales Adjusted EBITDACurrency Impact 2017 vs. 2016
Net Sales, Adjusted EBITDA and Margin (1)
Mil
lio
ns 12.5%
3.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Adjusted EBITDA Margin
We expect a continued challenging macroeconomic and competitive environment in 2017
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2017 Outlook(1)
• Net sales down by mid-to-low-single digits compared to full year 2016, with continued
currency headwinds
• SG&A of ~ 17% of net sales
- SG&A elevated by investment for ecommerce and ERP initiatives, ~15% of net sales
when these investments are excluded
• Adjusted EBITDA margin in the range of 11-13% of net sales
- Reduced fixed cost absorption due to downtime for scheduled furnace rebuilds
reduces first half Adjusted EBITDA margin by 200-300 bps year-over-year
• Capital allocation
- Capital expenditures of approximately $50 million, includes a portion of spend
originally planned for 2016
- Debt repayment prioritized to move toward target leverage range
- Dividend at annual rate of $0.47/share for 2017
Tailwinds- Announced 3% U.S. foodservice glass price increase, effective April 2017
- Productivity improvements
- Natural gas
Headwinds- Competitive pricing environment
- Retail shift from traditional brick & mortar stores to the internet
- Currency impacts
- Benefit costs(1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding 2017 outlook
Long-term financial goals
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Financial Metrics Long-term Goals
Revenue growthSustainable growth
5% CAGR
Adjusted EBITDA margin(1) 17%
Debt Net of Cash to Adjusted EBITDA(1) 2.5 to 3.0x
ROIC(1) 12% to 14%
TSR Top quartile
(1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and Adjusted EBITDA Margin; definition of ROIC
Market Firm Net Sales 2016A Rev. Split '17E Margin FV / EBITDA P / E Net Debt /
Company Cap Value 2017E 2018E N.A. Europe ROW EBITDA EBIT 2017E 2018E 2017E 2018E LTM EBITDA
New ell Brands Inc $25,580 $36,473 $14,760 $14,933 77% 13% 10% 19.1% 16.6% 12.9x 11.5x 17.1x 15.0x 3.9x
Tupperw are Brands Corporation3,648 4,415 2,280 2,371 25 25 50 18.6 16.0 10.4 9.9 15.4 14.3 1.7
Helen of Troy Limited 2,462 2,969 1,576 1,610 85 9 7 15.2 11.6 12.4 11.9 13.6 12.9 1.9
Lifetime Brands, Inc. 268 341 610 628 80 13 8 -- -- -- -- 12.2 10.5 1.7
Mean $7,989 $11,050 $4,806 $4,885 67% 15% 19% 17.6% 14.7% 11.9x 11.1x 14.6x 13.2x 2.3x
Median 3,055 3,692 1,928 1,990 78 13 9 18.6 16.0 12.4 11.5 14.5 13.6 1.8
Libbey Inc. $179 $550 $770 $791 62% 19% 19% 10.9% 5.3% 6.6x 5.3x 14.1x 6.5x 4.0x
Libbey & Peer Trading Overview
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Note: Forward metrics based on consensus Wall Street estimates (FactSet). Market data as of May 31, 2017. Balance sheet data reflects most recent available quarter.(1) Revenue split based on Newell Brand 2016 reported results, which includes acquired Jarden operations after April 15, 2016 and excludes divested Décor business operations after July 1, 2016.
Revenue split not pro forma for Sistema Plastics and Smith Mountain Industries acquisitions or Tools business divestiture.(2) Based on pro forma LTM EBITDA of $2.7bn.(3) Revenue split based on fiscal year ended February 28, 2017.
($ in millions)
(3)
(2)(1)
• Global tabletop leadership; one of the world’s largest global glass manufacturers, growing in tableware and flatware
� Leading market positions in U.S. & Canada and Latin America and across multiple sales channels: foodservice, retail and B2B
� #1 U.S. foodservice business drives significant recurring revenue and profitability(1)
� Strong customer relationships include North America’s largest foodservice distributors and most recognized retail names
• Customer-centric growth strategy focused on growth and operational and organizational excellence
• Simplifying supply chain to improve manufacturing flexibility and ROIC
• Strong liquidity and credit profile provide financial flexibility
• Balanced approach to capital allocation prioritizes investing in the business, achieving target leverage and returning Free Cash Flow(2) to shareholders
Investment highlights
28(1) Management estimates(2) See Appendix: Definition and reconciliation of non-GAAP measures for definition of Free Cash Flow
Appendices
We have expanded globally and have a strong portfolio of brands
Jun 2006: Obtains remaining 51% stake in Crisa,
expanding presence to Monterrey,
Mexico
Jan 2005: Acquires Crisal, a glassware manufacturer based
in Portugal
1800s 1990
Jul 2013: Celebrates 125th Anniversary in
Toledo
2002 2006 20112008 20122000
Dec 2002: Acquires Royal Leerdam, expanding
glassware operations to Europe
May 2012: Refinancing
amended $100MM ABL facility
and issuance of $450MM 6.875% Senior Secured
Notes
Apr 2007: Opens Langfang, China
facility
Aug 1997:Acquires World Tableware and
49% of Crisa
2014
Apr 2014: Refinancing,
including amended $100MM ABL
Facility and new $440MM Term Loan B senior secured credit
facility
1818: Libbey founded as New England Glass Company in East Cambridge, MA
sJun 1993:
Libbey becomes a public company
1892:The company
changes its name to The Libbey
Glass Company
Oct 1995: Acquires
Syracuse China
Aug 2011: Bill Foley becomes Chairman of the
Board
2015
Jan 2015:Announce Own the Moment strategy.
Re-initiate dividend and share
repurchases
Jan 2016: Bill Foley
becomes CEO and Chairman of
the Board
2016
Definition and reconciliation of non-GAAP measures
Q1 2017 Q1 2016 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008
Net income (loss) (6.6)$ 0.7$ 10.1$ 66.3$ 5.0$ 28.5$ 7.0$ 23.6$ 70.1$ (28.8)$ (80.4)$
Add:
Interest expense 4.9$ 5.2$ 20.9$ 18.5$ 22.9$ 32.0$ 37.7$ 43.4$ 45.2$ 66.7$ 69.7$
Provision (benefit) for income taxes (3.2) (0.1) 17.7 (38.2) 8.5 13.2 5.7 1.7 11.6 2.7 6.3
Depreciation and amortization 11.1 12.1 48.5 42.7 40.4 44.0 41.5 42.2 41.1 43.2 44.4
Add: Special items before interest and taxes(1)
:
Restructuring and facility closure charges - - - - 1.0 6.5 - (0.1) 2.5 3.8 29.1
Severance - - - - - - 5.1 1.1 - - -
Pension curtailment and settlement charges - - 0.2 21.7 0.8 2.3 4.3 - - 3.2 -
Loss (gain) on redemption of debt - - - - 47.2 2.5 31.1 2.8 (58.3) - -
Abandoned property - - - - - 1.8 - 2.7 - - -
Gain on sale of assets - - - - - - - (6.8) - - -
Goodwill and intangible impairment charges - - - - - - - - - - 11.9
Product portfolio optimization - - 5.7 - - - - - - - -
Other (2)
- 5.0 8.5 5.3 (3.5) 5.1 - 2.5 2.8 - 4.5 Less: Accelerated depreciation expense
included in special items and also in depreciation
and amortization above - - - - - (1.5) - - - (0.7) (0.3)
Adjusted EBITDA 6.2$ 22.9$ 111.6$ 116.3$ 122.1$ 134.4$ 132.4$ 113.1$ 115.0$ 90.1$ 85.2$
Net sales 173.0$ 182.8$ 793.4$ 822.3$ 852.5$ 818.8$ 825.3$ 817.1$ 799.8$ 748.6$ 810.2$
Adjusted EBITDA Margin 3.6% 12.5% 14.1% 14.1% 14.3% 16.4% 16.0% 13.8% 14.4% 12.0% 10.5%
Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted EBITDA Margin(Dollars in millions)
(2) Other Q1 2016 includes $5.0 million for executive terminations. Other FY 2016 includes $4.1 million for work stoppage and $4.4 million for executive terminations. 2015 includes $4.2 million for
reorganization charges, $0.9 million for executive termination, and $0.2 million for an environmental obligation. 2014 includes $(4.7) million for furnace malfunction net proceeds, $0.9 million for
executive retirement charges, and $0.3 million for an environmental obligation. 2013 includes $4.4 million of furnace malfunction charges and $0.7 million for executive retirement charges. 2011
includes $2.7 million for CEO transition expenses, $(1.0) million for an equipment credit and an $0.8 million write-down of unutilized fixed assets. 2010 includes $2.7 million of fixed asset write-down
charges, $1.0 million in expenses related to a secondary stock offering and a $(0.9) million insurance claim recovery. 2008 includes a $4.5 million fixed asset write-down charge.
Adjusted EBITDA excludes special items that Libbey believes are not reflective of our core operating performance.
(1) Beginning in the first quarter of 2017, the gain (loss) on mark-to-market natural gas contracts was considered representative of our ongoing operations and not a special item when computing
Adjusted EBITDA. The prior years presented here have been recasted to conform with our current presentation in 2017.
Definition and computation of non-GAAP measures
Definitions – Other Non-GAAP Measures
Trade working capital is defined as net accounts receivable plus net inventory less accounts payable.
Return on invested capital (ROIC) is defined as after tax income from operations (using a 35% tax rate), adjusted for special items, over ending trade working capital plus net book value of property, plant and equipment
Constant currency references regarding net sales reflect a simple mathematical translation of local currency results using the comparable prior period’s currency conversion rate. Constant currency references regarding Segment EBIT, Adjusted EBITDA and Adjusted EBITDA Margin comprise a simple mathematical translation of local currency results using the comparable prior period’s currency conversion rate plus the transactional impact of changes in exchange rates from revenues, expenses and assets and liabilities that are denominated in a currency other than the functional currency. Our currency market risks include currency fluctuations relative to the U.S. dollar, Canadian dollar, Mexican peso, Euro and RMB.
Free cash flow is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities.
2016 2015 2014 2013 2012 2011 2010 2009 2008
Adjusted EBITDA (1)
111.6$ 116.3$ 122.1$ 134.4$ 132.4$ 113.1$ 115.0$ 90.1$ 85.2$
Debt (2)
407.8$ 431.0$ 437.9$ 402.4$ 454.2$ 390.1$ 436.6$ 512.0$ 543.5$
Plus: Unamortized discount, finance fees and warrants (2)
4.5 5.8 7.0 9.5 12.3 11.6 16.9 5.0 11.4 Less: Carrying value in excess of principal on PIK notes - - - - - - - 70.2 -
Less: Carrying value adjustment on debt related to the Interest
Rate Agreement - - - (1.3) 0.4 4.1 3.3 - -
Gross Debt 412.3 436.9 444.9 413.2 466.1 397.6 450.2 446.8 554.9
Less: Cash 61.0 49.0 60.0 42.2 67.2 58.3 76.3 55.1 13.3
Debt net of cash 351.3$ 387.9$ 384.9$ 371.0$ 398.9$ 339.3$ 373.9$ 391.7$ 541.6$
Debt net of cash to Adjusted EBITDA Ratio 3.1 3.3 3.2 2.8 3.0 3.0 3.3 4.3 6.4
Interest expense 20.9$ 18.5$ 22.9$ 32.0$ 37.7$ 43.4$ 45.2$ 66.7$ 69.7$ Adjusted EBITDA to Interest Expense Ratio 5.3 6.3 5.3 4.2 3.5 2.6 2.5 1.4 1.2
Computation of Adjusted EBITDA to Debt net of cash to Adjusted EBITDA Ratio and Adjusted EBITDA to Interest Expense Ratio(Dollars in millions)
(1) - See prior page for calculation and reconciliation to net income.
(2) - All years reflect retrospective adoption of ASU 2015-03 and 2015-15, which presents debt issuance costs of senior debt as a reduction to the liability.
Definition and reconciliation of non-GAAP measures
Outlook for the year
ended
December 31, 2017
Net income margin 1% - 2%
Add:
Interest Expense 3% - 3%
Provision for income taxes 1% - 2%
Depreciation and amortization 6% - 6%
Special items before interest and taxes - - -
Adjusted EBITDA Margin (non-GAAP) 11% - 13%
Reconciliation of Net Income margin to Adjusted EBITDA Margin
Additional Information
NYSE MKT: LBY
Alpha IR Group
Chris Hodges & Sam Gibbons
312-445-2870
email: [email protected]
visit our website: www.libbey.com