Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - LIBBEY INC | form8-k.htm |
Exhibit 99.1
 | Libbey Inc. 300 Madison Ave P.O. Box 10060 Toledo, OH 43699 |
NEWS RELEASE
INVESTOR CONTACT: | MEDIA CONTACT: | |
Kenneth Boerger | Lisa Fell | |
Vice President and Treasurer | Director of Corporate Communications | |
(419) 325-2279 | (419) 325-2001 | |
ken.boerger@libbey.com | lfell@libbey.com | |
FOR IMMEDIATE RELEASE
FRIDAY, MAY 1, 2014
LIBBEY INC. ANNOUNCES FIRST QUARTER 2014 FINANCIAL RESULTS
Weather and higher input costs negatively impact first quarter results; Recently completed debt refinancing expected to reduce annual interest expense by more than $10 million
TOLEDO, OHIO, MAY 1, 2014--Libbey Inc. (NYSE MKT: LBY) today reported results for the first quarter-ended March 31, 2014.
First Quarter Financial Highlights
• | Sales for the first quarter were $181.6 million, compared to $183.5 million for the first quarter of 2013, a decrease of 1.0 percent (a decrease of 1.2 percent excluding currency fluctuation). |
• | Gross profit for the first quarter was $32.3 million, compared to $42.2 million for the first quarter of 2013. |
• | Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (see Table 2) for the quarter was $20.1 million, compared to $26.2 million in the prior-year quarter. |
• | Working capital was 22.9 percent of net sales, which was a record low for any first quarter in Company history. |
“First quarter revenues were negatively impacted by the severe weather in much of the United States in January and February; however, we saw improving trends during March. Higher energy costs, both in natural gas and electricity, packaging price increases and currency fluctuation, largely in the Americas, provided headwinds during the quarter. Our efforts over the last two years have strengthened our cost position considerably, and we are now focused on maintaining our hard-won margin increases and profitably growing our business," said Stephanie A. Streeter, chief executive officer of Libbey Inc. Streeter continued, "We look forward to a stronger sales environment in the remaining three quarters of 2014 and the opportunity to better leverage our global capabilities."
- More -
Libbey Inc.
Page 2
First Quarter Segment Sales and Operational Review
• | Sales in the Americas segment were $121.9 million, compared to $123.5 million in the first quarter of 2013, a decrease of 1.3 percent. This was comprised of a 1.0 percent decrease in sales in our foodservice channel, a decrease of 8.1 percent in retail and an 8.2 percent increase in the business-to-business channel. |
• | Sales in the EMEA segment increased 0.5 percent (a decrease of 3.1 percent excluding currency impact) to $34.4 million, compared to $34.2 million in the first quarter of 2013. |
• | Sales in U.S. Sourcing were $17.7 million in the first quarter of 2014, compared to $17.5 million in the prior-year quarter, as sales of World Tableware and Syracuse China flatware and dinnerware increased 1.4 percent. |
• | Sales in Other were $7.5 million, compared to $8.2 million in the prior-year quarter. This decrease was the result of an 8.4 percent decrease in sales (10.4 percent excluding currency impact) in the Asia Pacific region. |
• | Earnings before interest and income taxes (EBIT) were $3.1 million in the first quarter of 2014, compared to $11.1 million for the first quarter of 2013. |
• | Adjusted EBITDA of $20.1 million (see Table 2) was $6.1 million less than the $26.2 million reported in the prior-year quarter. The primary factors contributing to the change in adjusted EBITDA from the prior-year quarter include higher input costs for natural gas, packaging and electricity of $4.0 million, weather related factors of $1.3 million and nearly $2.0 million in currency impacts, primarily in Mexico, partially offset by the realization of savings of approximately $1 million from the recently completed North American capacity realignment. |
• | Interest expense decreased by $0.7 million to $7.7 million, compared to $8.4 million in the year-ago period, primarily driven by lower debt. |
• | Our effective tax rate was 25.8 percent for the quarter-ended March 31, 2014, compared to 25.0 percent for the quarter-ended March 31, 2013. |
Balance Sheet and Liquidity
• | Libbey reported that it had available capacity of $75.5 million under its ABL credit facility as of March 31, 2014, with no loans currently outstanding. The Company also had cash on hand of $24.5 million at March 31, 2014. |
• | As of March 31, 2014, working capital, defined as inventories and accounts receivable less accounts payable, was $187.1 million, compared to $196.4 million at March 31, 2013. Working capital decreased $9.3 million compared to the prior year, as the result of higher accounts payable partially offset by higher inventories. |
Sherry Buck, chief financial officer, added, "While we were impacted by weather and higher input costs in the quarter, we have a strong foundation to further increase our adjusted EBITDA margins in 2014 as we realize the benefits of our North American capacity realignment. In addition, we will begin to realize lower interest expense going forward as a result of the new $440 million senior secured credit facility, which, based on the initial interest rates, is expected to generate over $10 million in annual interest expense savings."
- More -
Libbey Inc.
Page 3
Webcast Information
Libbey will hold a conference call for investors on Thursday, May 1, 2014, at 11 a.m. Eastern Daylight Time. The conference call will be simulcast live on the Internet and is accessible from the Investor Relations' section of www.libbey.com. To listen to the call, please go to the website at least 10 minutes early to register, download and install any necessary software. A replay will be available for 14 days after the conclusion of the call.
About Libbey Inc.
Based in Toledo, Ohio, since 1888, we believe Libbey Inc. is the largest manufacturer of glass tableware in the western hemisphere and one of the largest glass tableware manufacturers in the world. It supplies products to foodservice, retail, industrial and business-to-business customers in over 100 countries, and it is the leading manufacturer of tabletop products for the U.S. foodservice industry.
Libbey operates glass tableware manufacturing plants in the United States in Louisiana and Ohio as well as in Mexico, China, Portugal and the Netherlands. Its Crisa subsidiary, located in Monterrey, Mexico, is a leading producer of glass tableware in Mexico and Latin America. Its subsidiary located in Leerdam, Netherlands, is among the world leaders in producing and selling glass stemware to retail, foodservice and industrial clients. Its Crisal subsidiary, located in Portugal, provides an expanded presence in Europe. Its Syracuse China subsidiary designs and distributes an extensive line of high-quality ceramic dinnerware, principally for foodservice establishments in the United States. Its World Tableware subsidiary imports and sells a full-line of metal flatware and hollowware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States. In 2013, Libbey Inc.'s net sales totaled $818.8 million.
This press release includes forward-looking statements as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect only the Company's best assessment at this time and are indicated by words or phrases such as "goal," "expects," " believes," "will," "estimates," "anticipates," or similar phrases. Investors are cautioned that forward-looking statements involve risks and uncertainty and that actual results may differ materially from these statements, and that investors should not place undue reliance on such statements. These forward-looking statements may be affected by the risks and uncertainties in the Company's business. This information is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's report on Form 10-K filed with the Commission on March 12, 2014. Important factors potentially affecting performance include but are not limited to risks related to our ability to borrow under our ABL credit agreement; increased competition from foreign suppliers endeavoring to sell glass tableware in the United States and Mexico; the impact of lower duties for imported products; global economic conditions and the related impact on consumer spending levels; major slowdowns in the retail, travel or entertainment industries in the United States, Canada, Mexico, Western Europe and Asia, caused by terrorist attacks or otherwise; significant increases in per-unit costs for natural gas, electricity, freight, corrugated packaging, and other purchased materials; high levels of indebtedness; high interest rates that increase the Company's borrowing costs or volatility in the financial markets that could constrain liquidity and credit availability; protracted work stoppages related to collective bargaining agreements; increases in expense associated with higher medical costs, increased pension expense associated with lower returns on pension investments and increased pension obligations; devaluations and other major currency fluctuations relative to the U.S. dollar and the Euro that could reduce the cost competitiveness of the Company's products compared to foreign competition; the effect of high inflation in Mexico and exchange rate changes to the value of the Mexican peso and the earnings and cash flow of Libbey Mexico, expressed under U.S. GAAP; the inability to achieve savings and profit improvements at targeted levels in the Company's operations or within the intended time periods; and whether the Company completes any significant acquisition and whether such acquisitions can operate profitably. Any forward-looking statements speak only as of the date of this press release, and the Company assumes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date of this press release.
- More -
Libbey Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per-share amounts)
(unaudited)
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Net sales | $ | 181,581 | $ | 183,476 | |||
Freight billed to customers | 814 | 752 | |||||
Total revenues | 182,395 | 184,228 | |||||
Cost of sales (1) | 150,056 | 141,996 | |||||
Gross profit | 32,339 | 42,232 | |||||
Selling, general and administrative expenses | 28,878 | 26,397 | |||||
Special charges (1) | — | 4,314 | |||||
Income from operations | 3,461 | 11,521 | |||||
Other expense | (322 | ) | (435 | ) | |||
Earnings before interest and income taxes | 3,139 | 11,086 | |||||
Interest expense | 7,701 | 8,435 | |||||
(Loss) income before income taxes | (4,562 | ) | 2,651 | ||||
(Benefit) provision for income taxes (1) | (1,178 | ) | 662 | ||||
Net (loss) income | $ | (3,384 | ) | $ | 1,989 | ||
Net (loss) income per share: | |||||||
Basic | $ | (0.16 | ) | $ | 0.09 | ||
Diluted | $ | (0.16 | ) | $ | 0.09 | ||
Weighted average shares: | |||||||
Outstanding | 21,523 | 21,115 | |||||
Diluted | 21,523 | 21,594 | |||||
(1) Refer to Table 1 for Special Items detail.
Libbey Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
March 31, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS: | |||||||
Cash and cash equivalents | $ | 24,473 | $ | 42,208 | |||
Accounts receivable — net | 87,046 | 94,549 | |||||
Inventories — net | 174,179 | 163,121 | |||||
Other current assets | 31,899 | 24,838 | |||||
Total current assets | 317,597 | 324,716 | |||||
Pension asset | 34,147 | 33,615 | |||||
Goodwill and purchased intangibles — net | 186,430 | 186,704 | |||||
Property, plant and equipment — net | 264,618 | 265,662 | |||||
Other assets | 18,868 | 19,293 | |||||
Total assets | $ | 821,660 | $ | 829,990 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||||
Accounts payable | $ | 74,099 | $ | 79,620 | |||
Accrued liabilities | 73,695 | 73,821 | |||||
Pension liability (current portion) | 3,161 | 3,161 | |||||
Non-pension postretirement benefits (current portion) | 4,758 | 4,758 | |||||
Other current liabilities | 1,644 | 1,374 | |||||
Long-term debt due within one year | 5,351 | 5,391 | |||||
Total current liabilities | 162,708 | 168,125 | |||||
Long-term debt | 406,808 | 406,512 | |||||
Pension liability | 40,254 | 40,033 | |||||
Non-pension postretirement benefits | 58,822 | 59,065 | |||||
Other liabilities | 23,402 | 25,446 | |||||
Total liabilities | 691,994 | 699,181 | |||||
Common stock and capital in excess of par value | 324,922 | 323,580 | |||||
Retained deficit | (122,995 | ) | (119,611 | ) | |||
Accumulated other comprehensive loss | (72,261 | ) | (73,160 | ) | |||
Total shareholders’ equity | 129,666 | 130,809 | |||||
Total liabilities and shareholders’ equity | $ | 821,660 | $ | 829,990 | |||
Libbey Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net (loss) income | $ | (3,384 | ) | $ | 1,989 | ||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||
Depreciation and amortization | 10,676 | 10,774 | |||||
(Gain) loss on asset sales and disposals | (4 | ) | 2 | ||||
Change in accounts receivable | 3,082 | (6,043 | ) | ||||
Change in inventories | (11,195 | ) | (10,635 | ) | |||
Change in accounts payable | (5,315 | ) | (7,745 | ) | |||
Accrued interest and amortization of finance fees | 7,256 | 8,131 | |||||
Pension & non-pension postretirement benefits | 1,372 | 3,700 | |||||
Restructuring | (243 | ) | 4,314 | ||||
Accrued liabilities & prepaid expenses | (12,369 | ) | (15,792 | ) | |||
Income taxes | (3,153 | ) | (1,626 | ) | |||
Share-based compensation expense | 1,003 | 824 | |||||
Other operating activities | (95 | ) | (573 | ) | |||
Net cash used in operating activities | (12,369 | ) | (12,680 | ) | |||
Investing activities: | |||||||
Additions to property, plant and equipment | (9,901 | ) | (8,882 | ) | |||
Proceeds from furnace malfunction insurance recovery | 4,346 | — | |||||
Proceeds from asset sales and other | 4 | 4 | |||||
Net cash used in investing activities | (5,551 | ) | (8,878 | ) | |||
Financing activities: | |||||||
Other repayments | (50 | ) | (59 | ) | |||
Stock options exercised | 336 | 537 | |||||
Net cash provided by financing activities | 286 | 478 | |||||
Effect of exchange rate fluctuations on cash | (101 | ) | (179 | ) | |||
Decrease in cash | (17,735 | ) | (21,259 | ) | |||
Cash & cash equivalents at beginning of period | 42,208 | 67,208 | |||||
Cash & cash equivalents at end of period | $ | 24,473 | $ | 45,949 | |||
In accordance with the SEC’s Regulation G, tables 1, 2, 3, 4, 5 and 6 provide non-GAAP measures used in this earnings release and a reconciliation to the most closely related Generally Accepted Accounting Principle (GAAP) measure. Libbey believes that providing supplemental non-GAAP financial information is useful to investors in understanding Libbey's core business and trends. In addition, it is the basis on which Libbey's management assesses performance. Although Libbey believes that the non-GAAP financial measures presented enhance investors' understanding of Libbey's business and performance, these non-GAAP measures should not be considered an alternative to GAAP.
Table 1 | ||||||||||||||||||||||||
Reconciliation of "As Reported" Results to "As Adjusted" Results - Quarter | ||||||||||||||||||||||||
(dollars in thousands, except per-share amounts) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
As Reported | Special Items | As Adjusted | As Reported | Special Items | As Adjusted | |||||||||||||||||||
Net sales | $ | 181,581 | $ | — | $ | 181,581 | $ | 183,476 | $ | — | $ | 183,476 | ||||||||||||
Freight billed to customers | 814 | — | 814 | 752 | — | 752 | ||||||||||||||||||
Total revenues | 182,395 | — | 182,395 | 184,228 | — | 184,228 | ||||||||||||||||||
Cost of sales | 150,056 | 6,291 | 143,765 | 141,996 | 566 | 141,430 | ||||||||||||||||||
Gross profit | 32,339 | (6,291 | ) | 38,630 | 42,232 | (566 | ) | 42,798 | ||||||||||||||||
Selling, general and administrative expenses | 28,878 | — | 28,878 | 26,397 | — | 26,397 | ||||||||||||||||||
Special charges | — | — | — | 4,314 | 4,314 | — | ||||||||||||||||||
Income from operations | 3,461 | (6,291 | ) | 9,752 | 11,521 | (4,880 | ) | 16,401 | ||||||||||||||||
Other expense | (322 | ) | — | (322 | ) | (435 | ) | — | (435 | ) | ||||||||||||||
Earnings before interest and income taxes | 3,139 | (6,291 | ) | 9,430 | 11,086 | (4,880 | ) | 15,966 | ||||||||||||||||
Interest expense | 7,701 | — | 7,701 | 8,435 | — | 8,435 | ||||||||||||||||||
(Loss) income before income taxes | (4,562 | ) | (6,291 | ) | 1,729 | 2,651 | (4,880 | ) | 7,531 | |||||||||||||||
(Benefit) provision for income taxes | (1,178 | ) | (341 | ) | (837 | ) | 662 | (837 | ) | 1,499 | ||||||||||||||
Net (loss) income | $ | (3,384 | ) | $ | (5,950 | ) | $ | 2,566 | $ | 1,989 | $ | (4,043 | ) | $ | 6,032 | |||||||||
Net (loss) income per share: | ||||||||||||||||||||||||
Basic | $ | (0.16 | ) | $ | (0.28 | ) | $ | 0.12 | $ | 0.09 | $ | (0.19 | ) | $ | 0.29 | |||||||||
Diluted | $ | (0.16 | ) | $ | (0.28 | ) | $ | 0.12 | $ | 0.09 | $ | (0.19 | ) | $ | 0.28 | |||||||||
Weighted average shares: | ||||||||||||||||||||||||
Outstanding | 21,523 | 21,523 | 21,115 | 21,115 | ||||||||||||||||||||
Diluted | 21,523 | 21,941 | 21,594 | 21,594 | ||||||||||||||||||||
Three months ended March 31, 2014 | Three months ended March 31, 2013 | |||||||||||||||||||
Special Items Detail - (Income) Expense: | Restructuring Charges (1) | Furnace Malfunction(2) | Total Special Items | Restructuring Charges (1) | Total Special Items | |||||||||||||||
Cost of sales | $ | 985 | $ | 5,306 | $ | 6,291 | $ | 566 | $ | 566 | ||||||||||
Special charges | — | — | — | 4,314 | 4,314 | |||||||||||||||
Income taxes | (296 | ) | (45 | ) | (341 | ) | (837 | ) | (837 | ) | ||||||||||
Total Special Items | $ | 689 | $ | 5,261 | $ | 5,950 | $ | 4,043 | $ | 4,043 | ||||||||||
(1) Restructuring charges relate to discontinuing production of certain glassware in North America and reducing manufacturing capacity at our Shreveport, Louisiana, facility.
(2) Furnace malfunction relates to loss of production at our Toledo, Ohio, manufacturing facility.
Table 2 | ||||||||
Reconciliation of Net (Loss) Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA | ||||||||
(dollars in thousands) | ||||||||
(unaudited) | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Reported net (loss) income | $ | (3,384 | ) | $ | 1,989 | |||
Add: | ||||||||
Interest expense | 7,701 | 8,435 | ||||||
(Benefit) provision for income taxes | (1,178 | ) | 662 | |||||
Depreciation and amortization | 10,676 | 10,774 | ||||||
EBITDA | 13,815 | 21,860 | ||||||
Add: Special items before interest and taxes | 6,291 | 4,880 | ||||||
Less: Depreciation expense included in special items and also in depreciation and amortization above | — | (566 | ) | |||||
Adjusted EBITDA | $ | 20,106 | $ | 26,174 | ||||
Table 3 | ||||||||
Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow | ||||||||
(dollars in thousands) | ||||||||
(unaudited) | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Net cash used in operating activities | $ | (12,369 | ) | $ | (12,680 | ) | ||
Capital expenditures | (9,901 | ) | (8,882 | ) | ||||
Proceeds from furnace malfunction insurance recovery | 4,346 | — | ||||||
Proceeds from asset sales and other | 4 | 4 | ||||||
Free Cash Flow | $ | (17,920 | ) | $ | (21,558 | ) | ||
Table 4 | ||||||||||||
Reconciliation to Working Capital | ||||||||||||
(dollars in thousands) | ||||||||||||
(unaudited) | ||||||||||||
March 31, 2014 | March 31, 2013 | December 31, 2013 | ||||||||||
Add: | ||||||||||||
Accounts receivable | $ | 87,046 | $ | 86,264 | $ | 94,549 | ||||||
Inventories | 174,179 | 167,374 | 163,121 | |||||||||
Less: Accounts payable | 74,099 | 57,259 | 79,620 | |||||||||
Less: Receivable on furnace malfunction insurance claim | — | — | 5,000 | |||||||||
Working Capital | $ | 187,126 | $ | 196,379 | $ | 173,050 | ||||||
Table 5 | ||||||||
Summary Business Segment Information | ||||||||
(dollars in thousands) (unaudited) | Three months ended March 31, | |||||||
2014 | 2013 | |||||||
Net Sales: | ||||||||
Americas (1) | $ | 121,925 | $ | 123,535 | ||||
EMEA (2) | 34,398 | 34,242 | ||||||
U.S. Sourcing (3) | 17,734 | 17,484 | ||||||
Other (4) | 7,524 | 8,215 | ||||||
Consolidated | $ | 181,581 | $ | 183,476 | ||||
Segment Earnings Before Interest & Taxes (Segment EBIT) (5) : | ||||||||
Americas (1) | $ | 14,989 | $ | 18,802 | ||||
EMEA (2) | 253 | (1,362 | ) | |||||
U.S. Sourcing (3) | 868 | 1,541 | ||||||
Other (4) | 445 | 2,285 | ||||||
Segment EBIT | $ | 16,555 | $ | 21,266 | ||||
Reconciliation of Segment EBIT to Net (Loss) Income: | ||||||||
Segment EBIT | $ | 16,555 | $ | 21,266 | ||||
Retained corporate costs (6) | (7,125 | ) | (5,300 | ) | ||||
Consolidated Adjusted EBIT | 9,430 | 15,966 | ||||||
Furnace malfunction | (5,306 | ) | — | |||||
Restructuring charges | (985 | ) | (4,880 | ) | ||||
Special items before interest and taxes | (6,291 | ) | (4,880 | ) | ||||
Interest expense | (7,701 | ) | (8,435 | ) | ||||
Income taxes | 1,178 | (662 | ) | |||||
Net (loss) income | $ | (3,384 | ) | $ | 1,989 | |||
Depreciation & Amortization: | ||||||||
Americas (1) | $ | 5,959 | $ | 6,528 | ||||
EMEA (2) | 2,626 | 2,486 | ||||||
U.S. Sourcing (3) | 7 | 9 | ||||||
Other (4) | 1,644 | 1,374 | ||||||
Corporate | 440 | 377 | ||||||
Consolidated | $ | 10,676 | $ | 10,774 | ||||
(1) Americas—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in North and South America.
(2) EMEA—includes worldwide sales of manufactured and sourced glass tableware having and end market destination in Europe, the Middle East and Africa.
(3) U.S. Sourcing—includes U.S. sales of sourced ceramic dinnerware, metal tableware, hollowware, and serveware.
(4) Other—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific.
(5) Segment EBIT represents earnings before interest and taxes and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance.
(6) Retained corporate costs includes certain headquarter, administrative and facility costs, and other costs that are not allocable to the reporting segments.
Table 6 | ||||||||
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA and Debt Net of Cash to Adjusted EBITDA Ratio | ||||||||
(dollars in thousands) | ||||||||
(unaudited) | ||||||||
Last twelve months ending | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Reported net income | $ | 23,086 | $ | 28,459 | ||||
Add: | ||||||||
Interest expense | 31,272 | 32,006 | ||||||
Provision for income taxes | 11,401 | 13,241 | ||||||
Depreciation and amortization | 43,871 | 43,969 | ||||||
EBITDA | 109,630 | 117,675 | ||||||
Add: Special items before interest and taxes | 19,670 | 18,259 | ||||||
Less: Depreciation expense included in special items and also in depreciation and amortization above | (967 | ) | (1,533 | ) | ||||
Adjusted EBITDA | $ | 128,333 | $ | 134,401 | ||||
Debt | $ | 412,159 | $ | 411,903 | ||||
Less: Carrying value adjustment on debt related to the Interest Rate Agreement | (965 | ) | (1,324 | ) | ||||
Gross debt | 413,124 | 413,227 | ||||||
Cash | 24,473 | 42,208 | ||||||
Debt net of cash | $ | 388,651 | $ | 371,019 | ||||
Debt net of cash to Adjusted EBITDA ratio | 3.0 x | 2.8 x | ||||||