Berry Plastics swings to fiscal Q1 earnings of US$6M, from a loss of US$10M a year ago, on 6% increase in sales due primarily to increased selling prices, sales from acquisition of Graphic Packaging's flexible plastics and film business

EVANSVILLE, Indiana , January 31, 2014 (press release) – Berry Plastics Group, Inc. (NYSE:BERY) today reported results for its fiscal first quarter 2014, referred to in the following as the December 2013 quarter:

  • December 2013 quarter Operating EBITDA of $172 million and LTM Adjusted EBITDA of $801 million
  • December 2013 quarter net income of $6 million ($0.05 per diluted share)
  • LTM Adjusted free cash flow of $288 million, representing an 11 percent adjusted free cash flow yield
  • Adjusted free cash flow of $94 million for the December 2013 quarter compared to $44 million in the December 2012 quarter
  • Adjusted net income per share of $0.18 for the December 2013 quarter compared to $0.08 in the December 2012 quarter
  • Net cash flow from operating activities of $172 million for the December 2013 quarter compared to $87 million for the December 2012 quarter
“Despite the continued pressure from increasing raw material costs coupled with subdued consumer and customer demand, we finished the quarter in line with our expectations and with our previously announced full fiscal year guidance, while generating solid free cash flow,” said Jon Rich, Chairman and CEO of Berry Plastics.

“The actions we have taken over the past year, and up through the recent quarter, have been consistent with our strategic goals to increase shareholder value,” said Rich. “We continued to invest in research and development, marketing and capital equipment to support our organic growth strategy. We made a very important step in expanding our international footprint through our acquisition of a controlling interest in Qingdao P&B Co., Ltd., and also completed a synergistic, bolt-on acquisition through the addition of Graphic Packaging’s Flexible Plastics and Film business.”

December 2013 Quarter Results
For the quarter ended December 2013, the Company’s net sales increased by 6% to $1,140 million from $1,072 million in the December 2012 quarter. The increase in the quarter was primarily attributed to increased selling prices due to higher material costs along with sales from our acquisition of Graphic Packaging’s Flexible Plastics and Film business.

Capital Structure and Adjusted Free Cash Flow
The ratio at the end of the December 28, 2013 quarter of net debt of $3,787 million to LTM Adjusted EBITDA of $801 million was 4.7x, an improvement of 0.1x from the September 2013 quarter. The Company’s LTM Adjusted free cash flow was $288 million. Adjusted free cash flow for the December 2013 quarter was $94 million compared to $44 million in the December 2012 quarter.

Outlook
“With the first quarter under our belt in fiscal 2014 and as we look ahead to the remainder of the year, we remain committed to our four-point strategy, and we are reconfirming our fiscal 2014 Adjusted free cash flow guidance of $270 million,” said Rich.

Investor Conference Call
The Company will host a conference call on Friday, January 31, 2014, at 10 a.m. Eastern Time to discuss its first quarter 2014 results. The telephone number to access the conference call is (866) 244-4530 (domestic), or (703) 639-1173 (international), conference ID 1631188. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Company’s Investor Relations page at www.berryplastics.com. A replay of the conference call can also be accessed on the Investor Relations page of the website beginning January 31, 2014, at 2 p.m. Eastern Time, to February 8, 2014, by calling (888) 266-2081 (domestic), or (703) 925-2533 (international), access code 1631188.

About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of over $4.6 billion in fiscal 2013. With world headquarters in Evansville, Indiana, the Company’s common stock is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the Company’s website at www.berryplastics.com.

Berry Plastics Group, Inc.

Consolidated Statements of Operations

(Unaudited)

(in millions, except per share data)

             
          Quarterly Period Ended
         

December 28,
2013

   

December 29,
2012

                 
Net sales         $ 1,140       $ 1,072  
Costs and expenses:                
Cost of goods sold           964         895  
Selling, general and administrative           77         77  
Amortization of intangibles           26         27  
Restructuring and impairment charges           10         5  
Operating income           63         68  
                 
Debt extinguishment                   16  
Other income, net           (1 )       (3 )
Interest expense, net           55         70  
Income (loss) before income taxes           9         (15 )
Income tax expense (benefit)           3         (5 )
Net income (loss)         $ 6       $ (10 )
                 
                         

Comprehensive income (loss)

        $ 5       $ (7 )
                         
                 
Net income (loss) per share:                
Basic         $ 0.05       $ (0.09 )
Diluted           0.05         (0.09 )
                 

 

               

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