Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Solo Cup CO | form8-kx12252011_body.htm |
Exhibit 99.1
SOLO CUP COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions)
For the thirteen weeks ended | For the fifty-two weeks ended | ||||||||||||||
December 25, 2011 | December 26, 2010 | December 25, 2011 | December 26, 2010 | ||||||||||||
Net sales | $ | 413.0 | $ | 409.2 | $ | 1,636.3 | $ | 1,582.9 | |||||||
Cost of goods sold | 382.8 | 363.9 | 1,505.9 | 1,439.3 | |||||||||||
Gross profit | 30.2 | 45.3 | 130.4 | 143.6 | |||||||||||
Selling, general and administrative expenses | 31.8 | 38.3 | 135.2 | 150.4 | |||||||||||
(Gain) loss on asset disposals | (0.2 | ) | 1.2 | 0.9 | 3.9 | ||||||||||
Asset impairment | — | 3.9 | 13.1 | 20.5 | |||||||||||
Operating (loss) income | (1.4 | ) | 1.9 | (18.8 | ) | (31.2 | ) | ||||||||
Interest expense, net | 17.8 | 17.8 | 70.6 | 70.6 | |||||||||||
Foreign currency exchange loss, net | 1.5 | 1.6 | 1.8 | 2.2 | |||||||||||
Gain from bargain purchase | — | — | — | (1.7 | ) | ||||||||||
Loss before income taxes | (20.7 | ) | (17.5 | ) | (91.2 | ) | (102.3 | ) | |||||||
Income tax provision (benefit) | 1.8 | (0.3 | ) | 2.3 | 1.9 | ||||||||||
Net loss | $ | (22.5 | ) | $ | (17.2 | ) | $ | (93.5 | ) | $ | (104.2 | ) | |||
Reconciliation of net loss to EBITDA (non-GAAP measure) | |||||||||||||||
For the thirteen weeks ended | For the fifty-two weeks ended | ||||||||||||||
December 25, 2011 | December 26, 2010 | December 25, 2011 | December 26, 2010 | ||||||||||||
Net loss (1) | $ | (22.5 | ) | $ | (17.2 | ) | $ | (93.5 | ) | $ | (104.2 | ) | |||
Interest expense, net | 17.8 | 17.8 | 70.6 | 70.6 | |||||||||||
Income tax provision (benefit) | 1.8 | (0.3 | ) | 2.3 | 1.9 | ||||||||||
Depreciation and amortization (excluding accelerated depreciation) | 14.6 | 16.5 | 62.7 | 69.9 | |||||||||||
Accelerated depreciation | — | 11.1 | 17.9 | 39.7 | |||||||||||
EBITDA (non-GAAP measure) | $ | 11.7 | $ | 27.9 | $ | 60.0 | $ | 77.9 | |||||||
(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 fifty-two weeks ended | ||||||||||||||
December 25, 2011 | December 26, 2010 | December 25, 2011 | December 26, 2010 | ||||||||||||
Plant closure and related severance costs | $ | 1.7 | $ | 0.8 | $ | 7.6 | $ | 8.7 | |||||||
Pension plan curtailment loss | — | — | — | 1.5 | |||||||||||
Closed plant inefficiencies | 2.3 | 3.3 | 15.3 | 4.2 | |||||||||||
Gain from bargain purchase | — | — | — | (1.7 | ) | ||||||||||
Asset impairment | — | 3.9 | 13.1 | 20.5 | |||||||||||
(Gain) loss on asset disposals | (0.2 | ) | 1.2 | 0.9 | 3.9 | ||||||||||
Foreign currency exchange loss, net | 1.5 | 1.6 | 1.8 | 2.2 | |||||||||||
Lease charges | 7.7 | — | 7.7 | — | |||||||||||
Long-term incentive plan | (0.3 | ) | 1.0 | (0.3 | ) | (0.1 | ) | ||||||||
Corporate severance costs | — | — | 1.2 | — | |||||||||||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
December 25, 2011 | December 26, 2010 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 19.3 | $ | 21.5 | |||
Accounts receivable, net | 129.7 | 120.7 | |||||
Inventories | 255.5 | 227.6 | |||||
Deferred income taxes | 7.7 | 13.1 | |||||
Other current assets | 24.4 | 25.8 | |||||
Total current assets | 436.6 | 408.7 | |||||
Property, plant and equipment, net | 318.1 | 429.1 | |||||
Other assets | 24.4 | 26.9 | |||||
Total assets | $ | 779.1 | $ | 864.7 | |||
Liabilities and Shareholder’s Deficit | |||||||
Accounts payable | $ | 91.3 | $ | 63.1 | |||
Accrued expenses | 44.5 | 55.9 | |||||
Current maturities of long-term debt | 0.5 | 0.4 | |||||
Other current liabilities | 35.8 | 59.2 | |||||
Total current liabilities | 172.1 | 178.6 | |||||
Long-term debt, net of current maturities | 662.0 | 637.3 | |||||
Deferred income taxes | 7.8 | 14.9 | |||||
Other liabilities | 131.9 | 121.4 | |||||
Total liabilities | 973.8 | 952.2 | |||||
Total shareholder’s deficit | (194.7 | ) | (87.5 | ) | |||
Total liabilities and shareholder’s deficit | $ | 779.1 | $ | 864.7 | |||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Fifty-two weeks ended | |||||||
December 25, 2011 | December 26, 2010 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (93.5 | ) | $ | (104.2 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 80.6 | 109.6 | |||||
Deferred financing fee amortization | 7.4 | 7.0 | |||||
Loss on asset disposals | 0.9 | 3.9 | |||||
Pension plan curtailment loss | — | 1.5 | |||||
Gain from bargain purchase | — | (1.7 | ) | ||||
Asset impairment | 13.1 | 20.5 | |||||
Deferred income taxes | (0.5 | ) | (0.9 | ) | |||
Foreign currency exchange loss, net | 1.8 | 2.2 | |||||
Changes in operating assets and liabilities | (33.6 | ) | 4.1 | ||||
Other, net | 2.7 | 1.7 | |||||
Net cash (used in) provided by operating activities | (21.1 | ) | 43.7 | ||||
Cash flows from investing activities | |||||||
Proceeds from sale of property, plant and equipment | 25.6 | 7.7 | |||||
Purchases of property, plant and equipment | (28.3 | ) | (42.1 | ) | |||
Business acquisition, net of cash acquired | — | (23.7 | ) | ||||
Decrease in restricted cash | 1.9 | 8.5 | |||||
Proceeds from insurance reimbursement | — | 1.2 | |||||
Other | (2.5 | ) | — | ||||
Net cash used in investing activities | (3.3 | ) | (48.4 | ) | |||
Cash flows from financing activities | |||||||
Net borrowings (repayments) under revolving credit facilities | 23.9 | (2.3 | ) | ||||
Repayments of term notes | — | (0.4 | ) | ||||
Repayments of other debt | (0.4 | ) | (0.4 | ) | |||
Return of capital to parent | — | (0.1 | ) | ||||
Debt issuance costs | — | (0.8 | ) | ||||
Net cash provided by (used in) financing activities | 23.5 | (4.0 | ) | ||||
Effect of exchange rate changes on cash | (1.3 | ) | 0.2 | ||||
Net decrease in cash and cash equivalents | (2.2 | ) | (8.5 | ) | |||
Cash and cash equivalents, beginning of period | 21.5 | 30.0 | |||||
Cash and cash equivalents, end of period | $ | 19.3 | $ | 21.5 | |||