Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Solo Cup CO | form8-kx05102011_body.htm |
Exhibit 99.1
SOLO CUP COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions)
For the thirteen weeks ended | |||||||
March 27, 2011 | March 28, 2010 | ||||||
Net sales | $ | 371.1 | $ | 344.9 | |||
Cost of goods sold | 340.7 | 306.6 | |||||
Gross profit | 30.4 | 38.3 | |||||
Selling, general and administrative expenses | 35.6 | 34.8 | |||||
Loss on asset disposals | 0.5 | 1.0 | |||||
Operating (loss) income | (5.7 | ) | 2.5 | ||||
Interest expense, net | 17.3 | 17.1 | |||||
Foreign currency exchange loss, net | 2.2 | 1.4 | |||||
Loss before income taxes | (25.2 | ) | (16.0 | ) | |||
Income tax provision | 0.1 | 0.5 | |||||
Net loss | $ | (25.3 | ) | $ | (16.5 | ) | |
Reconciliation of net loss to EBITDA (non-GAAP measure) | |||||||
March 27, 2011 | March 28, 2010 | ||||||
Net loss (1) | $ | (25.3 | ) | $ | (16.5 | ) | |
Interest expense, net | 17.3 | 17.1 | |||||
Income tax provision | 0.1 | 0.5 | |||||
Depreciation and amortization (excluding accelerated depreciation) | 16.7 | 17.0 | |||||
Accelerated depreciation | 9.5 | — | |||||
EBITDA (non-GAAP measure) | $ | 18.3 | $ | 18.1 | |||
(1) Net loss includes the following items, which are listed here to provide information for purposes of additional analysis | |||||||
March 27, 2011 | March 28, 2010 | ||||||
Plant closure and severance costs | $ | 2.6 | $ | — | |||
Closed plant inefficiencies | 3.0 | — | |||||
Loss on asset disposals | 0.5 | 1.0 | |||||
Foreign currency exchange loss, net | 2.2 | 1.4 | |||||
Long-term incentive plan | — | (0.2 | ) | ||||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
March 27, 2011 | December 26, 2010 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 16.4 | $ | 21.5 | |||
Accounts receivable, net | 131.1 | 120.7 | |||||
Inventories | 272.4 | 227.6 | |||||
Deferred income taxes | 11.3 | 13.1 | |||||
Other current assets | 22.5 | 25.8 | |||||
Total current assets | 453.7 | 408.7 | |||||
Property, plant and equipment, net | 410.8 | 429.1 | |||||
Other assets | 25.1 | 26.9 | |||||
Total assets | 889.6 | 864.7 | |||||
Liabilities and Shareholder’s Deficit | |||||||
Accounts payable | $ | 89.0 | $ | 63.1 | |||
Accrued expenses | 54.1 | 55.9 | |||||
Current maturities of long-term debt | 0.4 | 0.4 | |||||
Other current liabilities | 57.3 | 59.2 | |||||
Total current liabilities | 200.8 | 178.6 | |||||
Long-term debt, net of current maturities | 664.6 | 637.3 | |||||
Deferred income taxes | 12.7 | 14.9 | |||||
Other liabilities | 121.0 | 121.4 | |||||
Total liabilities | 999.1 | 952.2 | |||||
Total shareholder’s deficit | (109.5 | ) | (87.5 | ) | |||
Total liabilities and shareholder’s deficit | $ | 889.6 | $ | 864.7 | |||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Thirteen weeks ended | |||||||
March 27, 2011 | March 28, 2010 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (25.3 | ) | $ | (16.5 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 26.2 | 17.0 | |||||
Deferred financing fee amortization | 1.8 | 1.7 | |||||
Loss on asset disposals | 0.5 | 1.0 | |||||
Deferred income taxes | 0.1 | (0.3 | ) | ||||
Foreign currency exchange loss, net | 2.2 | 1.4 | |||||
Changes in operating assets and liabilities | (33.3 | ) | (30.4 | ) | |||
Other, net | 0.5 | 0.7 | |||||
Net cash used in operating activities | (27.3 | ) | (25.4 | ) | |||
Cash flows from investing activities | |||||||
Proceeds from sale of property, plant and equipment | 1.1 | — | |||||
Purchases of property, plant and equipment | (7.2 | ) | (20.0 | ) | |||
Decrease in restricted cash | 1.9 | 2.2 | |||||
Net cash used in investing activities | (4.2 | ) | (17.8 | ) | |||
Cash flows from financing activities | |||||||
Net borrowings under revolving credit facilities | 27.0 | 42.3 | |||||
Repayments of term notes | — | (0.3 | ) | ||||
Repayments of other debt | (0.1 | ) | (0.1 | ) | |||
Return of capital to parent | — | (0.1 | ) | ||||
Debt issuance costs | — | (0.5 | ) | ||||
Net cash provided by financing activities | 26.9 | 41.3 | |||||
Effect of exchange rate changes on cash | (0.6 | ) | 0.3 | ||||
Net decrease in cash and cash equivalents | (5.1 | ) | (1.6 | ) | |||
Cash and cash equivalents, beginning of period | 21.5 | 30.0 | |||||
Cash and cash equivalents, end of period | $ | 16.4 | $ | 28.4 | |||