MULTI PACKAGING SOLUTIONS INTRNTNL LTD Multi Packaging Solutions Announces Record Second Quarter Results
02/11/16
Non GAAP net income per share of $0.26 versus $0.10 for the quarter and $0.55 versus $0.21 for the year to date
NEW YORK--(BUSINESS WIRE)-- Multi Packaging Solutions International Limited (NYSE:MPSX), ("MPS" or "the Company"), a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets, today announced results for 2Q 2016.
2Q FY 2016 vs 2Q FY 2015 Highlights:
GAAP sales of $429.4 million vs $404.8 million
Negative foreign exchange impact of $23.6 million
GAAP net income (loss) attributable to MPS of $(7.9) million vs $(2.4) million GAAP income (loss) attributable to MPS of $(0.11) per share vs $(0.04) per share Non GAAP net income attributable to MPS of $18.9 million vs $6.1 million
Non GAAP net income attributable to MPS per share of $0.26 vs $0.10
Non GAAP EBITDA of $69.4 million vs $58.5 million ($63.0 million in the prior year pro forma for acquisitions)
Non GAAP EBITDA margin of 16.2% vs 14.4% (13.2% in the prior year pro forma for acquisitions)
YTD FY 2016 vs YTD FY 2015 Highlights:
GAAP sales of $888.4 million vs $798.9 million
Negative foreign exchange impact of $58.0 million
GAAP net income attributable to MPS of $5.1 million vs $4.6 million GAAP income attributable to MPS of $0.08 per share vs $0.07 per share
Non GAAP net income attributable to MPS of $37.0 million vs $12.8 million
Non GAAP net income attributable to MPS of $0.55 per share vs $0.21 per share
Non GAAP EBITDA of $146.6 million vs $119.6 million ($133.4 million in the prior year pro forma for acquisitions).
Non GAAP EBITDA margin of 16.5% vs 15.0% (13.3% pro forma in the prior year for acquisitions).
Marc Shore, Chief Executive Officer, commented, "We are pleased to have achieved record adjusted EBITDA and adjusted EBITDA margins despite the challenging global economy and the negative effects of foreign exchange. Our financial results continue to improve as we execute our global strategy. MPS continues to make significant improvement in operating efficiencies. We are also gaining traction in supplying our customers with a wide variety of products to meet their comprehensive needs on both a regional and global basis. Adjusted EBITDA for the trailing twelve months ending December 31, 2015 was $259.2 million. Due to continued strong cash generation, our pro forma leverage has dropped to 3.49x."
GAAP net sales for 2Q FY 2016 and YTD 2016 were $429.4 million and $888.4 million vs GAAP net sales for 2Q FY2015 and YTD 2015 of $404.8 million and $798.9 million. 2Q FY 2016 and YTD 2016 include negative foreign exchange effects of $23.6 million and $58.0 million. Adjusted for acquisitions in fiscal 2015, net sales for 2Q 2016 were down $49.2 million vs. 2Q 2015. This decrease was due to several factors: the impact of unfavorable foreign exchange rates, the anticipated and continuing decline in multi-media sales and reduced sales related to certain consumer product companies.
Gross margin for 2Q 2016 was 22.3%, up 200 basis points, vs. 20.3% for 2Q 2015. This increase reflects the Company's improved manufacturing efficiencies in our facilities, returns from our targeted capital spending programs, and $4.9 million of realized synergies from acquisitions, partially offset by restructuring charges for the Melrose Park facility closure. The Company expects to realize an additional $2.5 million in synergies related to acquisitions in the next two quarters.
GAAP net income (loss) attributable to MPS for 2Q FY 2016 and YTD 2016 were $(7.9) million and $5.1 million vs GAAP net income (loss) for 2Q FY 2015 and YTD 2015 of $(2.4) million and $4.6 million. 2Q FY 2016 and YTD 2016 include negative foreign exchange effects of $4.2 million and $10.6 million. During the quarter, besides the foreign exchange impacts noted, the Company recorded stock compensation costs associated with the Company's initial public offering of $26.9 million and debt extinguishment costs associated with the related early payment of term loans of $3.9 million, as well as restructuring charges. These charges were partially offset by $2.7 million of reduced income taxes associated with the enactment of "UK Finance (No.
2) Act 2015" on November 18, 2015.
Non GAAP net income attributable to MPS for 2Q FY 2016 and YTD 2016 were $18.9 million and $37.0 million vs non GAAP net income attributable to MPS for 2Q FY 2015 and YTD 2015 of $6.1 million and $12.8 million.
Non GAAP EBITDA for 2Q 2016 was $69.4 million, up $10.9 million, or 18.7%, vs. $58.5 million in 2Q 2015. Non GAAP EBITDA margin of 16.2% was driven by the Company's targeted capital spending programs, plant improvement initiatives, and purchasing and cost savings programs. Pro forma for acquisitions, non GAAP EBITDA increased $6.4 million, or 10.1%, vs. $63.0 million in 2Q 2015.
Cash balances as of December 31, 2015 were $59.0 million. There were no amounts outstanding under our revolving credit facility. Total debt net of cash was $903.8 million including deferred debt discount of $15.1 million. At December 31, 2015, trailing twelve months pro forma adjusted EBITDA was $259.2 million, and the pro forma leverage ratio was 3.49x.
Second Quarter Earnings Conference Call and Webcast
The Company will host a conference call on February 11, 2016 at 5:00pm ET, which can be accessed by dialing 877-705-6003
(domestic) or 201-493-6725 (international).
Supplemental materials for today's call can also be found on the investor relations portion of the Company's website.
The Company will also host a live webcast of its conference call which may be accessed on the Investor Relations section of the Company's website at multipkg.com.
A replay will be available approximately three hours after the call, through February 18, 2016, accessible by dialing 877-870- 5176 (domestic), or 858-384-5517 (international). The passcode for the replay is 13629434.
Non-GAAP Financial Measures
The historical financial information included in this presentation includes financial information that is not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA. Management uses these non-GAAP financial measures in the analysis of financial and operating performance because they assist in the evaluation of underlying trends in our business. Our use of the terms Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA may differ from that of others in our industry. Adjusted Net Income, Adjusted Operating Income and Adjusted EBITDA should not be considered as alternatives to net income (loss), operating income (loss), or any other performance measures prepared in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP.
Multi Packaging Solutions is a leading global provider of value-added packaging solutions to a diverse customer base across the healthcare, consumer and multi-media markets. MPS provides its customers with an extensive array of print-based specialty packaging solutions, including premium folding cartons, inserts, labels and rigid packaging across a variety of substrates and finishes. MPS has manufacturing locations across North America, Europe and Asia.
This release contains certain forward-looking statements regarding MPS and its subsidiaries. All of these statements are based on management's expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of MPS' control that may cause its business, industry, strategy, financing activities or actual results to differ materially. MPS undertakes no obligation to update or revise any of the forward looking statements contained herein, whether as a result of new information, future events or otherwise.
MPSX-IR
Multi Packaging Solutions International Limited And Subsidiaries Condensed Consolidated Balance Sheets
(in thousands)
December 31,
2015
(unaudited)
Current assets
Cash and cash equivalents $ 59,045
Accounts receivable, net 248,185
Inventories 163,849
Prepaid expenses and other current assets 28,180
Deferred income taxes 7,758
Total current assets 507,017
Property, plant and equipment
Land 55,792
Buildings and improvements 57,793
Machinery and equipment 375,518
Furniture and fixtures 14,784
Construction in progress 10,582
Total 514,469
Less: Accumulated depreciation (112,331)
Total property, plant and equipment, net 402,138
Other assets
Intangible assets, net 386,280
Goodwill 468,144
Deferred financing costs, net 3,191
Deferred income taxes 14,322
Other assets 32,681
Total assets $ 1,813,773
Current liabilities
Accounts payable $ 168,529
Payroll and benefits 38,469
Other current liabilities 43,590
Short-term foreign borrowings 4,501
Current portion of long-term debt 10,167
Income taxes payable 5,308
Total current liabilities 270,564
Long-term debt, less current portion 948,220
Deferred income taxes 86,245
Other long-term liabilities 31,439
Total liabilities 1,336,468
Multi Packaging Solutions International Ltd. issued this content on 11 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 February 2016 21:16:13 UTC
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