EveryWare Global, Inc. - FORM 8-K/A - EX-99.1 - EXHIBIT 99.1 - August 27, 2014

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8-K/A - 8-K/A - EveryWare Global, Inc.evry-20140826x8kxuksale.htm
EX-99.2 - EXHIBIT 99.2 - EveryWare Global, Inc.evry-20140826x8kxex992.htm
EX-2.1 - EXHIBIT 2.1 - EveryWare Global, Inc.sharepurchaseagreement-one.htm


EXHIBIT 99.1

Unaudited Pro Forma Condensed Consolidated Financial Information
On August 21, 2014, Oneida UK Limited (the “Seller”), an indirect, wholly owned subsidiary of EveryWare Global, Inc. (“EveryWare” or the “Company”), sold the share capital of Oneida International Limited (“Oneida”) pursuant to an Agreement (the “Share Purchase Agreement”) with HUK 54 Limited (the “Buyer”), a subsidiary of Hilco Capital Limited, for consideration of an aggregate of £3.7 million consisting of indebtedness repaid by Buyer at closing, including amounts due to the Company and the repayment of Oneida’s revolving credit facility (the “U.K. Revolver”) with Burdale Financial Limited (the “Sale”). Oneida comprised the Company’s business in the United Kingdom. The Sale did not include the right to license the ONEIDA ®, Anchor Hocking® or Sant’ Andrea® brands, which are retained by the Company, subject to a four month exclusive European and Middle East license and subsequent sell off right.
The unaudited pro forma condensed consolidated balance sheet as of June 30, 2014, reflects the pro forma effect as if the Share Purchase Agreement had been consumated on that date. The unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2014, the year ended December 31, 2013, and the year ended December 31, 2012, include EveryWare’s historical statements of operations, adjusted to reflect the pro forma effect as if the Share Purchase Agreement had been consummated on January 1, 2012 (the first day of our 2012 fiscal year). The historical consolidated financial statements referred to above for EveryWare were included in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, and Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying unaudited pro forma condensed consolidated financial information and the historical consolidated financial information presented herein should be read in conjunction with the historical consolidated financial statements and notes thereto for EveryWare.
The unaudited pro forma financial statement information is based upon available information and assumptions that the Company believes are reasonable and has been provided for informational purposes only. The pro forma information is not necessarily indicative of what the Company’s financial position or results of operations actually would have been had the sale occurred as of the dates indicated. In addition, the unaudited pro forma condensed consolidated financial information does not purport to project the future financial position or operating results of the Company.




EveryWare Global, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
(dollars in thousands)

 
June 30, 2014
 
As Reported
 
Adjustments
 
Pro Forma
ASSETS
Current assets:
 
 
 
 
 
Cash
$
4,346

 
$
(503
)
 
$
3,843

Trade accounts receivable, net
40,653

 
(6,647
)
 
34,006

Other accounts and notes receivable
8,412

 
(3,820
)
 
4,592

Inventories
101,518

 
(11,049
)
 
90,469

Assets held for sale
425

 
—

 
425

Income taxes receivable
499

 
—

 
499

Deferred tax asset
—

 
—

 
—

Other current assets
8,396

 
(2,832
)
 
5,564

Total current assets
164,249

 
(24,851
)
 
139,398

Property, plant and equipment, net
50,516

 
(1,226
)
 
49,290

Goodwill
8,452

 
—

 
8,452

Other intangible assets
43,658

 
(1,563
)
 
42,095

Deferred tax asset
—

 
—

 
—

Other assets
7,464

 
(118
)
 
7,346

Total assets
$
274,339

 
$
(27,758
)
 
$
246,581

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
 
 
 
 
 
Short-term debt
$
5,847

 
$
(5,847
)
 
$
—

Accounts payable
50,790

 
(4,485
)
 
46,305

Accrued liabilities
27,570

 
(5,009
)
 
22,561

Income taxes payable
45

 
4

 
49

Accrued pension
2,001

 
(238
)
 
1,763

Current portion of long-term debt
2,841

 
—

 
2,841

Other current liabilities
—

 
—

 
—

Total current liabilities
89,094

 
(15,575
)
 
73,519

Revolver
26,584

 
—

 
26,584

Long-term debt
245,299

 
—

 
245,299

Pension and other post-retirement benefits
2,323

 
1,065

 
3,388

Income taxes payable
454

 
—

 
454

Deferred income taxes
9,254

 
—

 
9,254

Deferred gain on sale / leaseback
14,936

 
—

 
14,936

Other liabilities
12,700

 
—

 
12,700

Total liabilities
400,644

 
(14,510
)
 
386,134

 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
Total EveryWare stockholders’ deficit
(126,232
)
 
(13,248
)
 
(139,480
)
Non-controlling interest
(73
)
 
—

 
(73
)
Total stockholders’ deficit
(126,305
)
 
(13,248
)
 
(139,553
)
Total liabilities and stockholders’ deficit
$
274,339

 
$
(27,758
)
 
$
246,581





EveryWare Global, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(dollars in thousands, except per share amounts)

 
Six months ended June 30, 2014
 
As Reported
 
Adjustments
 
Pro Forma
Revenues:
 
 
 
 
 
Net sales
$
191,425

 
$
(18,037
)
 
$
173,388

Licensing fees
3,211

 
—

 
3,211

Total revenues
194,636

 
(18,037
)
 
176,599

Cost of sales
169,128

 
(14,214
)
 
154,914

Gross margin
25,508

 
(3,823
)
 
21,685

Operating expenses:
 
 
 
 
 
Selling, distribution and administrative expenses
54,485

 
(9,380
)
 
45,105

Restructuring expense (income)
191

 
(385
)
 
(194
)
Loss on disposal of assets
180

 
33

 
213

Long-lived asset impairment
2,231

 
—

 
2,231

Goodwill, intangible asset impairment
3,216

 
—

 
3,216

Total operating expenses
60,303

 
(9,732
)
 
50,571

Loss from operations
(34,795
)
 
5,909

 
(28,886
)
Other (income) expense, net
(443
)
 
162

 
(281
)
Interest expense
11,168

 
(429
)
 
10,739

Loss before income taxes
(45,520
)
 
6,176

 
(39,344
)
Income tax expense
19,773

 
—

 
19,773

Net loss
(65,293
)
 
6,176

 
(59,117
)
Less: Non-controlling interest in subsidiary’s loss
(56
)
 
—

 
(56
)
Net loss attributable to common stockholders
$
(65,237
)
 
$
6,176

 
$
(59,061
)
 
 
 
 
 
 
Loss per common share:
 
 
 
 
 
Basic
$
(3.17
)
 
 
 
$
(2.87
)
Diluted
$
(3.17
)
 
 
 
$
(2.87
)
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
Basic
20,554

 
 
 
20,554

Diluted
20,554

 
 
 
20,554

 
 
 
 
 
 






EveryWare Global, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(dollars in thousands, except per share amounts)

 
Year Ended December 31, 2013
 
As Reported
 
Adjustments
 
Pro Forma
Revenues:
 
 
 
 
 
Net sales
$
433,304

 
$
(32,265
)
 
$
401,039

Licensing fees
6,505

 
—

 
6,505

Total revenues
439,809

 
(32,265
)
 
407,544

Cost of sales
341,836

 
(20,831
)
 
321,005

Gross margin
97,973

 
(11,434
)
 
86,539

Operating expenses:
 
 
 
 
 
Selling, distribution and administrative expenses
84,453

 
(12,530
)
 
71,923

Restructuring expense
290

 
(1,355
)
 
(1,065
)
Loss on disposal of assets
36

 
2

 
38

Long-lived asset impairment
908

 
—

 
908

Goodwill, intangible asset impairment
—

 
—

 
—

Total operating expenses
85,687

 
(13,883
)
 
71,804

Income from operations
12,286

 
2,449

 
14,735

Other (income) expense, net
(10
)
 
12

 
2

Gain on bargain purchase
(1,150
)
 
1,150

 
—

Interest expense
28,322

 
(596
)
 
27,726

Loss before income taxes
(14,876
)
 
1,883

 
(12,993
)
Income tax expense
2,542

 
(16
)
 
2,526

Net loss
(17,418
)
 
1,899

 
(15,519
)
Less: Non-controlling interest in subsidiary’s loss
(17
)
 
—

 
(17
)
Net loss attributable to common stockholders
$
(17,401
)
 
$
1,899

 
$
(15,502
)
 
 
 
 
 
 
Loss per common share:
 
 
 
 
 
Basic
$
(1.03
)
 
 
 
$
(0.92
)
Diluted
$
(1.03
)
 
 
 
$
(0.92
)
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
Basic
16,832

 
 
 
16,832

Diluted
16,832

 
 
 
16,832

 
 
 
 
 
 





EveryWare Global, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(dollars in thousands, except per share amounts)

 
Year Ended December 31, 2012
 
As Reported
 
Adjustments
 
Pro Forma
Revenues:
 
 
 
 
 
Net sales
$
414,782

 
$
(17,065
)
 
$
397,717

Licensing fees
6,907

 
—

 
6,907

Total revenues
421,689

 
(17,065
)
 
404,624

Cost of sales
315,609

 
(9,910
)
 
305,699

Gross margin
106,080

 
(7,155
)
 
98,925

Operating expenses:
 
 
 
 
 
Selling, distribution and administrative expenses
86,246

 
(7,975
)
 
78,271

Restructuring expense
612

 
(280
)
 
332

Loss on disposal of assets
114

 
(1
)
 
113

Total operating expenses
86,972

 
(8,256
)
 
78,716

Income from operations
19,108

 
1,101

 
20,209

Other (income) expense, net
1,114

 
30

 
1,144

Interest expense
22,536

 
(100
)
 
22,436

Loss before income taxes
(4,542
)
 
1,171

 
(3,371
)
Income tax benefit
(585
)
 
3

 
(582
)
Net loss
(3,957
)
 
1,168

 
(2,789
)
Less: Non-controlling interest in subsidiary’s loss
—

 
—

 
—

Net loss attributable to common stockholders
$
(3,957
)
 
$
1,168

 
$
(2,789
)
 
 
 
 
 
 
Loss per common share:
 
 
 
 
 
Basic
$
(0.32
)
 
 
 
$
(0.23
)
Diluted
$
(0.32
)
 
 
 
$
(0.23
)
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
Basic
12,190

 
 
 
12,190

Diluted
12,190

 
 
 
12,190

 
 
 
 
 
 



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