Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Solo Cup CO | form8-kx08092011_body.htm |
Exhibit 99.1
SOLO CUP COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions)
For the thirteen weeks ended | For the twenty-six weeks ended | ||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | ||||||||||||
Net sales | $ | 435.9 | $ | 419.2 | $ | 807.0 | $ | 764.1 | |||||||
Cost of goods sold | 398.8 | 386.6 | 739.5 | 693.2 | |||||||||||
Gross profit | 37.1 | 32.6 | 67.5 | 70.9 | |||||||||||
Selling, general and administrative expenses | 36.0 | 40.8 | 71.6 | 75.6 | |||||||||||
(Gain) loss on asset disposals | (0.8 | ) | 1.0 | (0.3 | ) | 2.0 | |||||||||
Asset impairment | 12.3 | 13.2 | 12.3 | 13.2 | |||||||||||
Operating loss | (10.4 | ) | (22.4 | ) | (16.1 | ) | (19.9 | ) | |||||||
Interest expense, net | 17.6 | 17.4 | 34.9 | 34.4 | |||||||||||
Foreign currency exchange loss, net | 0.2 | — | 2.4 | 1.4 | |||||||||||
Gain from bargain purchase | — | (1.7 | ) | — | (1.7 | ) | |||||||||
Loss before income taxes | (28.2 | ) | (38.1 | ) | (53.4 | ) | (54.0 | ) | |||||||
Income tax provision | 0.9 | 1.7 | 1.0 | 2.2 | |||||||||||
Net loss | $ | (29.1 | ) | $ | (39.8 | ) | $ | (54.4 | ) | $ | (56.2 | ) | |||
Reconciliation of net loss to EBITDA (non-GAAP measure) | |||||||||||||||
For the thirteen weeks ended | For the twenty-six weeks ended | ||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | ||||||||||||
Net loss (1) | $ | (29.1 | ) | $ | (39.8 | ) | $ | (54.4 | ) | $ | (56.2 | ) | |||
Interest expense, net | 17.6 | 17.4 | 34.9 | 34.4 | |||||||||||
Income tax provision | 0.9 | 1.7 | 1.0 | 2.2 | |||||||||||
Depreciation and amortization (excluding accelerated depreciation) | 16.7 | 19.1 | 33.5 | 36.1 | |||||||||||
Accelerated depreciation | 7.6 | 10.6 | 17.1 | 10.6 | |||||||||||
EBITDA (non-GAAP measure) | $ | 13.7 | $ | 9.0 | $ | 32.1 | $ | 27.1 | |||||||
(1) Net loss includes the following items, which are listed here to provide information for purposes of additional analysis | |||||||||||||||
For the thirteen weeks ended | For the twenty-six weeks ended | ||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | ||||||||||||
Plant closure and severance costs | $ | 1.7 | $ | 6.5 | $ | 4.3 | $ | 6.5 | |||||||
Closed plant inefficiencies | 4.2 | — | 7.2 | — | |||||||||||
Gain from bargain purchase | — | (1.7 | ) | — | (1.7 | ) | |||||||||
Asset impairment | 12.3 | 13.2 | 12.3 | 13.2 | |||||||||||
(Gain) loss on asset disposals | (0.8 | ) | 1.0 | (0.3 | ) | 2.0 | |||||||||
Foreign currency exchange loss, net | 0.2 | — | 2.4 | 1.4 | |||||||||||
Long-term incentive plan | (0.8 | ) | 0.2 | (0.8 | ) | — | |||||||||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
June 26, 2011 | December 26, 2010 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 15.1 | $ | 21.5 | |||
Accounts receivable, net | 143.5 | 120.7 | |||||
Inventories | 284.0 | 227.6 | |||||
Deferred income taxes | 5.4 | 13.1 | |||||
Other current assets | 40.6 | 25.8 | |||||
Total current assets | 488.6 | 408.7 | |||||
Property, plant and equipment, net | 365.6 | 429.1 | |||||
Other assets | 25.5 | 26.9 | |||||
Total assets | 879.7 | 864.7 | |||||
Liabilities and Shareholder’s Deficit | |||||||
Accounts payable | $ | 96.5 | $ | 63.1 | |||
Accrued expenses | 52.1 | 55.9 | |||||
Current maturities of long-term debt | 0.5 | 0.4 | |||||
Other current liabilities | 55.5 | 59.2 | |||||
Total current liabilities | 204.6 | 178.6 | |||||
Long-term debt, net of current maturities | 688.0 | 637.3 | |||||
Deferred income taxes | 7.1 | 14.9 | |||||
Other liabilities | 118.6 | 121.4 | |||||
Total liabilities | 1,018.3 | 952.2 | |||||
Total shareholder’s deficit | (138.6 | ) | (87.5 | ) | |||
Total liabilities and shareholder’s deficit | $ | 879.7 | $ | 864.7 | |||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Twenty-six weeks ended | |||||||
June 26, 2011 | June 27, 2010 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (54.4 | ) | $ | (56.2 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 50.6 | 46.7 | |||||
Deferred financing fee amortization | 3.6 | 3.4 | |||||
(Gain) loss on asset disposals | (0.3 | ) | 2.0 | ||||
Gain from bargain purchase | — | (1.7 | ) | ||||
Asset impairment | 12.3 | 13.2 | |||||
Deferred income taxes | (0.1 | ) | (0.1 | ) | |||
Foreign currency exchange loss, net | 2.4 | 1.4 | |||||
Changes in operating assets and liabilities | (59.2 | ) | (66.6 | ) | |||
Other, net | 1.1 | 1.2 | |||||
Net cash used in operating activities | (44.0 | ) | (56.7 | ) | |||
Cash flows from investing activities | |||||||
Proceeds from sale of property, plant and equipment | 1.2 | 0.1 | |||||
Purchases of property, plant and equipment | (13.9 | ) | (31.3 | ) | |||
Business acquisition, net of cash acquired | — | (23.7 | ) | ||||
Decrease in restricted cash | 1.9 | 4.3 | |||||
Other | (1.5 | ) | — | ||||
Net cash used in investing activities | (12.3 | ) | (50.6 | ) | |||
Cash flows from financing activities | |||||||
Net borrowings under revolving credit facilities | 50.2 | 100.2 | |||||
Repayments of term notes | — | (0.4 | ) | ||||
Repayments of other debt | (0.2 | ) | (0.2 | ) | |||
Return of capital to parent | — | (0.1 | ) | ||||
Debt issuance costs | — | (0.5 | ) | ||||
Net cash provided by financing activities | 50.0 | 99.0 | |||||
Effect of exchange rate changes on cash | (0.1 | ) | 0.3 | ||||
Net decrease in cash and cash equivalents | (6.4 | ) | (8.0 | ) | |||
Cash and cash equivalents, beginning of period | 21.5 | 30.0 | |||||
Cash and cash equivalents, end of period | $ | 15.1 | $ | 22.0 | |||