Coveris Reports First Quarter 2016 Financial Results

  • Adjusted EBITDA of $76 million, up 2.6% compared to 2015
  • Adjustments to EBITDA for special items reduced to $9 million compared to $18 million in 2015
  • Gross margin of 15.6%, up 70 basis points compared to the prior year

CHICAGO--()--Coveris Holdings S.A. reported first quarter 2016 net sales of $638 million. Net sales for the first quarter of 2015 were $634 million. Adjusted EBITDA for the first quarter was $76 million, compared to $74 million in the first quarter of 2015.

“During the quarter, Coveris remained focused on key strategic initiatives around commercial and supply chain excellence”

“During the quarter, Coveris remained focused on key strategic initiatives around commercial and supply chain excellence,” said Gary Masse, President and Chief Executive Officer. “We are driving our strategy and making progress with key end market growth, pricing our products, achieving productivity improvements and managing our inventory.”

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 May 13, at 9:00 a.m., 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 p.m., Eastern, on May 13 until May 27, 2016, by dialing 877-660-6853 (domestic) or 201-612-7415 (international) with the conference ID of 13636694.

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
Ended Ended
31-Mar-16   31-Mar-15
 
U.S. GAAP Net income (loss) $ (21.8 ) $ (20.3 )
Interest expense, net 33.6 31.2
(Benefit) provision for income taxes 4.4 (5.1 )
Depreciation and amortization   36.5       35.9  
Non-GAAP EBITDA $ 52.7     $ 41.7  
 
Non-Operational Adjustments:
(Gain) loss on disposal of assets 1.7 (1.5 )
Pension revaluation - 0.2
Foreign currency exchange (gain) loss 11.1 15.3
Other   0.9       -  
Total Non-Operational Adjustments $ 13.7     $ 14.0  
 
Special Items:
Restructuring and related relocation costs(a) 2.9 4.7
Management fees and expenses 2.1 2.4
Transaction related expenses(b) 0.1 0.4
Business improvement consulting cost 1.9 6.2
Other expenses(c)   2.2       4.3  
Total Special Items:   9.2       18.0  
Non-GAAP Adjusted EBITDA $ 75.6     $ 73.7  
 
(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 information technology, consulting, rebranding and other infrequent expenses.

Contacts

Coveris Holdings S.A.
Investor Relations:
Duane Owens, 864-641-4710
Treasurer
duane.owens@coveris.com
or
Media Relations:
Chris Swalm, 864-504-6145
Marketing Communications Manager
chris.swalm@coveris.com

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