Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Solo Cup CO | form8-kx11082011_body.htm |
Exhibit 99.1
SOLO CUP COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions)
For the thirteen weeks ended | For the thirty-nine weeks ended | ||||||||||||||
September 25, 2011 | September 26, 2010 | September 25, 2011 | September 26, 2010 | ||||||||||||
Net sales | $ | 416.3 | $ | 409.6 | $ | 1,223.3 | $ | 1,173.7 | |||||||
Cost of goods sold | 383.6 | 382.2 | 1,123.1 | 1,075.4 | |||||||||||
Gross profit | 32.7 | 27.4 | 100.2 | 98.3 | |||||||||||
Selling, general and administrative expenses | 31.9 | 36.5 | 103.4 | 112.1 | |||||||||||
Loss on asset disposals | 1.4 | 0.7 | 1.2 | 2.6 | |||||||||||
Asset impairment | 0.7 | 3.4 | 13.0 | 16.7 | |||||||||||
Operating loss | (1.3 | ) | (13.2 | ) | (17.4 | ) | (33.1 | ) | |||||||
Interest expense, net | 17.9 | 18.3 | 52.8 | 52.8 | |||||||||||
Foreign currency exchange (gain) loss, net | (2.1 | ) | (0.8 | ) | 0.3 | 0.6 | |||||||||
Gain from bargain purchase | — | — | — | (1.7 | ) | ||||||||||
Loss before income taxes | (17.1 | ) | (30.7 | ) | (70.5 | ) | (84.8 | ) | |||||||
Income tax (benefit) provision | (0.5 | ) | — | 0.5 | 2.2 | ||||||||||
Net loss | $ | (16.6 | ) | $ | (30.7 | ) | $ | (71.0 | ) | $ | (87.0 | ) | |||
Reconciliation of net loss to EBITDA (non-GAAP measure) | |||||||||||||||
For the thirteen weeks ended | For the thirty-nine weeks ended | ||||||||||||||
September 25, 2011 | September 26, 2010 | September 25, 2011 | September 26, 2010 | ||||||||||||
Net loss (1) | $ | (16.6 | ) | $ | (30.7 | ) | $ | (71.0 | ) | $ | (87.0 | ) | |||
Interest expense, net | 17.9 | 18.3 | 52.8 | 52.8 | |||||||||||
Income tax (benefit) provision | (0.5 | ) | — | 0.5 | 2.2 | ||||||||||
Depreciation and amortization (excluding accelerated depreciation) | 14.6 | 17.2 | 48.1 | 53.4 | |||||||||||
Accelerated depreciation | 0.8 | 18.1 | 17.9 | 28.6 | |||||||||||
EBITDA (non-GAAP measure) | $ | 16.2 | $ | 22.9 | $ | 48.3 | $ | 50.0 | |||||||
(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 thirty-nine weeks ended | ||||||||||||||
September 25, 2011 | September 26, 2010 | September 25, 2011 | September 26, 2010 | ||||||||||||
Plant closure and related severance costs | $ | 1.6 | $ | 1.4 | $ | 5.9 | $ | 7.9 | |||||||
Pension plan curtailment loss | — | 1.5 | — | 1.5 | |||||||||||
Closed plant inefficiencies | 5.8 | 0.9 | 13.0 | 0.9 | |||||||||||
Gain from bargain purchase | — | — | — | (1.7 | ) | ||||||||||
Asset impairment | 0.7 | 3.4 | 13.0 | 16.7 | |||||||||||
Loss on asset disposals | 1.4 | 0.7 | 1.2 | 2.6 | |||||||||||
Foreign currency exchange (gain) loss, net | (2.1 | ) | (0.8 | ) | 0.3 | 0.6 | |||||||||
Long-term incentive plan | 0.8 | (1.2 | ) | — | (1.1 | ) | |||||||||
Corporate severance costs | 1.2 | — | 1.2 | — | |||||||||||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
September 25, 2011 | December 26, 2010 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 27.4 | $ | 21.5 | |||
Accounts receivable, net | 125.4 | 120.7 | |||||
Inventories | 272.2 | 227.6 | |||||
Deferred income taxes | 6.8 | 13.1 | |||||
Other current assets | 31.2 | 25.8 | |||||
Total current assets | 463.0 | 408.7 | |||||
Property, plant and equipment, net | 327.4 | 429.1 | |||||
Other assets | 26.4 | 26.9 | |||||
Total assets | $ | 816.8 | $ | 864.7 | |||
Liabilities and Shareholder’s Deficit | |||||||
Accounts payable | $ | 81.2 | $ | 63.1 | |||
Accrued expenses | 45.6 | 55.9 | |||||
Current maturities of long-term debt | 0.4 | 0.4 | |||||
Other current liabilities | 34.8 | 59.2 | |||||
Total current liabilities | 162.0 | 178.6 | |||||
Long-term debt, net of current maturities | 691.9 | 637.3 | |||||
Deferred income taxes | 7.7 | 14.9 | |||||
Other liabilities | 115.1 | 121.4 | |||||
Total liabilities | 976.7 | 952.2 | |||||
Total shareholder’s deficit | (159.9 | ) | (87.5 | ) | |||
Total liabilities and shareholder’s deficit | $ | 816.8 | $ | 864.7 | |||
SOLO CUP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Thirty-nine weeks ended | |||||||
September 25, 2011 | September 26, 2010 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (71.0 | ) | $ | (87.0 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 66.1 | 82.0 | |||||
Deferred financing fee amortization | 5.5 | 5.2 | |||||
Loss on asset disposals | 1.2 | 2.6 | |||||
Gain from bargain purchase | — | (1.7 | ) | ||||
Asset impairment | 13.0 | 16.7 | |||||
Deferred income taxes | (1.0 | ) | (0.1 | ) | |||
Foreign currency exchange loss, net | 0.3 | 0.6 | |||||
Changes in operating assets and liabilities | (63.6 | ) | (51.1 | ) | |||
Other, net | 2.5 | 3.3 | |||||
Net cash used in operating activities | (47.0 | ) | (29.5 | ) | |||
Cash flows from investing activities | |||||||
Proceeds from sale of property, plant and equipment | 20.6 | 0.1 | |||||
Purchases of property, plant and equipment | (21.0 | ) | (37.6 | ) | |||
Business acquisition, net of cash acquired | — | (23.7 | ) | ||||
Decrease in restricted cash | 1.9 | 5.8 | |||||
Proceeds from insurance reimbursement | — | 1.2 | |||||
Other | (1.5 | ) | — | ||||
Net cash used in investing activities | — | (54.2 | ) | ||||
Cash flows from financing activities | |||||||
Net borrowings under revolving credit facilities | 54.0 | 79.0 | |||||
Repayments of term notes | — | (0.4 | ) | ||||
Repayments of other debt | (0.3 | ) | (0.3 | ) | |||
Return of capital to parent | — | (0.1 | ) | ||||
Debt issuance costs | — | (0.5 | ) | ||||
Net cash provided by financing activities | 53.7 | 77.7 | |||||
Effect of exchange rate changes on cash | (0.8 | ) | 0.6 | ||||
Net increase (decrease) in cash and cash equivalents | 5.9 | (5.4 | ) | ||||
Cash and cash equivalents, beginning of period | 21.5 | 30.0 | |||||
Cash and cash equivalents, end of period | $ | 27.4 | $ | 24.6 | |||