Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Solo Cup CO | d8k.htm |
Exhibit 99.1
Solo Cup Company and Subsidiaries
Consolidated Statements of Operations
(In millions)
| Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
| September 26, 2010 |
September 27, 2009 |
September 26, 2010 |
September 27, 2009 |
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| Net sales |
$ | 409.6 | $ | 370.1 | $ | 1,173.7 | $ | 1,115.5 | ||||||||
| Cost of goods sold |
382.2 | 316.3 | 1,075.4 | 960.0 | ||||||||||||
| Gross profit |
27.4 | 53.8 | 98.3 | 155.5 | ||||||||||||
| Selling, general and administrative expenses |
36.5 | 38.6 | 112.1 | 112.7 | ||||||||||||
| Impairment of goodwill |
— | 17.2 | — | 17.2 | ||||||||||||
| Loss on asset disposals |
0.7 | 5.0 | 2.6 | 7.4 | ||||||||||||
| Asset impairment |
3.4 | — | 16.7 | — | ||||||||||||
| Operating (loss) income |
(13.2 | ) | (7.0 | ) | (33.1 | ) | 18.2 | |||||||||
| Interest expense, net of interest income |
18.3 | 17.5 | 52.8 | 45.4 | ||||||||||||
| Reclassification of unrealized loss on cash flow hedges to interest expense |
— | — | — | 9.1 | ||||||||||||
| Loss on debt extinguishment |
— | 2.5 | — | 2.5 | ||||||||||||
| Foreign currency exchange (gain) loss, net |
(0.8 | ) | 0.1 | 0.6 | (2.3 | ) | ||||||||||
| Gain from bargain purchase |
— | — | (1.7 | ) | — | |||||||||||
| Loss before income taxes |
(30.7 | ) | (27.1 | ) | (84.8 | ) | (36.5 | ) | ||||||||
| Income tax provision (benefit) |
— | 0.8 | 2.2 | (5.4 | ) | |||||||||||
| Net loss |
$ | (30.7 | ) | $ | (27.9 | ) | $ | (87.0 | ) | $ | (31.1 | ) | ||||
Reconciliation of net loss to EBITDA (non-GAAP measure)
| Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
| September 26, 2010 |
September 27, 2009 |
September 26, 2010 |
September 27, 2009 |
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| Net loss(1) |
$ | (30.7 | ) | $ | (27.9 | ) | $ | (87.0 | ) | $ | (31.1 | ) | ||||
| Interest expense, net (includes reclassification of unrealized loss on cash flow hedges) |
18.3 | 20.0 | 52.8 | 57.0 | ||||||||||||
| Income tax provision (benefit) |
— | 0.8 | 2.2 | (5.4 | ) | |||||||||||
| Depreciation and amortization (excluding accelerated depreciation) |
17.2 | 17.4 | 53.4 | 51.9 | ||||||||||||
| Accelerated depreciation |
18.1 | — | 28.6 | — | ||||||||||||
| EBITDA (non-GAAP measure) |
$ | 22.9 | $ | 10.3 | $ | 50.0 | $ | 72.4 | ||||||||
| (1) | Net loss includes the following items, which are listed here to provide information for purposes of additional analysis. |
| Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
| September 26, 2010 |
September 27, 2009 |
September 26, 2010 |
September 27, 2009 |
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| Plant closure expenses and severance costs |
$ | 1.4 | $ | 4.1 | $ | 7.9 | $ | 11.5 | ||||||||
| Pension plan curtailment loss |
1.5 | — | 1.5 | — | ||||||||||||
| Closed plant inefficiencies |
0.9 | — | 0.9 | 1.0 | ||||||||||||
| Impairment of goodwill |
— | 17.2 | — | 17.2 | ||||||||||||
| Asset impairment |
3.4 | — | 16.7 | — | ||||||||||||
| Gain from bargain purchase |
— | — | (1.7 | ) | — | |||||||||||
| Loss on asset disposals |
0.7 | 5.0 | 2.6 | 7.4 | ||||||||||||
| Foreign currency exchange (gain) loss , net |
(0.8 | ) | 0.1 | 0.6 | (2.3 | ) | ||||||||||
| Long-term incentive plan |
(1.2 | ) | (0.2 | ) | (1.1 | ) | 0.4 | |||||||||
| Contractual resolution charge |
— | — | — | 3.9 | ||||||||||||
Solo Cup Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
| September 26, 2010 |
December 27, 2009 |
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| Assets |
||||||||
| Cash and cash equivalents |
$ | 24.6 | $ | 30.0 | ||||
| Accounts receivable, net |
125.1 | 124.9 | ||||||
| Inventories |
291.0 | 232.6 | ||||||
| Deferred income taxes |
16.7 | 19.1 | ||||||
| Other current assets |
37.9 | 29.8 | ||||||
| Total current assets |
495.3 | 436.4 | ||||||
| Property, plant and equipment, net |
456.2 | 509.0 | ||||||
| Other assets |
28.2 | 42.0 | ||||||
| Total assets |
$ | 979.7 | $ | 987.4 | ||||
| Liabilities and Shareholder’s (Deficit) Equity |
||||||||
| Accounts payable |
$ | 76.1 | $ | 82.0 | ||||
| Accrued expenses |
53.2 | 55.6 | ||||||
| Current maturities of long-term debt |
0.5 | 0.8 | ||||||
| Other current liabilities |
62.7 | 47.1 | ||||||
| Total current liabilities |
192.5 | 185.5 | ||||||
| Long-term debt, net of current maturities |
718.3 | 635.3 | ||||||
| Deferred income taxes |
20.1 | 22.7 | ||||||
| Other liabilities |
114.3 | 125.7 | ||||||
| Total liabilities |
1,045.2 | 969.2 | ||||||
| Total shareholder’s (deficit) equity |
(65.5 | ) | 18.2 | |||||
| Total liabilities and shareholder’s (deficit) equity |
$ | 979.7 | $ | 987.4 | ||||
Solo Cup Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In millions)
| Thirty-nine weeks ended | ||||||||
| September 26, 2010 |
September 27, 2009 |
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| Cash flows from operating activities |
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| Net loss |
$ | (87.0 | ) | $ | (31.1 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
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| Depreciation and amortization |
82.0 | 51.9 | ||||||
| Deferred financing fee amortization |
5.2 | 4.3 | ||||||
| Impairment of goodwill |
— | 17.2 | ||||||
| Loss on asset disposals |
2.6 | 7.4 | ||||||
| Loss on debt extinguishment |
— | 2.5 | ||||||
| Gain from bargain purchase |
(1.7 | ) | — | |||||
| Reclassification of unrealized loss on cash flow hedges |
— | 9.1 | ||||||
| Asset impairment |
16.7 | — | ||||||
| Deferred income taxes |
(0.1 | ) | (5.2 | ) | ||||
| Foreign currency exchange loss (gain), net |
0.6 | (2.4 | ) | |||||
| Changes in operating assets and liabilities, net of business acquisition |
(51.1 | ) | 63.4 | |||||
| Other, net |
3.3 | 1.7 | ||||||
| Net cash (used in) provided by operating activities |
(29.5 | ) | 118.8 | |||||
| Cash flows from investing activities |
||||||||
| Purchase of property, plant and equipment |
(37.6 | ) | (52.7 | ) | ||||
| Proceeds from sale of property, plant and equipment |
0.1 | 16.6 | ||||||
| Business acquisition, net of cash acquired |
(23.7 | ) | — | |||||
| Decrease (increase) in restricted cash |
5.8 | (11.5 | ) | |||||
| Increase in cash escrow |
— | (0.5 | ) | |||||
| Proceeds from insurance reimbursement |
1.2 | — | ||||||
| Net cash used in investing activities |
(54.2 | ) | (48.1 | ) | ||||
| Cash flows from financing activities |
||||||||
| Net borrowings (repayments) under revolving credit facilities |
79.0 | (18.3 | ) | |||||
| Borrowings under the 10.5% Senior Secured Notes |
— | 293.8 | ||||||
| Repayments of term notes |
(0.4 | ) | (362.9 | ) | ||||
| Repayments of other debt |
(0.3 | ) | (0.3 | ) | ||||
| Return of capital to parent |
(0.1 | ) | — | |||||
| Debt issuance costs |
(0.5 | ) | (17.8 | ) | ||||
| Net cash provided by (used in) financing activities |
77.7 | (105.5 | ) | |||||
| Effect of exchange rate changes on cash |
0.6 | 0.9 | ||||||
| Net decrease in cash and cash equivalents |
(5.4 | ) | (33.9 | ) | ||||
| Cash and cash equivalents, beginning of period |
30.0 | 57.5 | ||||||
| Cash and cash equivalents, end of period |
$ | 24.6 | $ | 23.6 | ||||