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EX-99.2 - EX-99.2 - Multi Packaging Solutions International Ltdmpsx-20160822ex992302563.htm
8-K - 8-K - Multi Packaging Solutions International Ltdmpsx-20160822x8k.htm

Exhibit 99.1

 

W:\Word Team Jobs\Bridge\2016\03_March\22\Multi Packaging Solutions 8K\Wip\mps_logo_color_hr.jpg

 

 

 

Multi Packaging Solutions Announces Fourth Quarter Results

Strong cash flow provides for additional repayment of $20 million of debt in quarter

 

New York, NY, August 22, 2016 – Multi Packaging Solutions International Limited (NYSE: MPSX), (“MPS” or the “Company”), a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets, today announced results for 4Q and  Fiscal Year 2016.

 

4Q FY 2016 vs 4Q FY 2015:

 

GAAP sales of $373.8 million vs $402.5  million

    Negative foreign exchange impact of $6.0 million

GAAP operating income of $10.3 million vs $9.5 million

GAAP net loss attributable to MPS of $6.7 million vs $4.9 million

GAAP net loss attributable to MPS of $0.09 per share vs $0.08 per share

Non GAAP net income attributable to MPS of $2.2 million vs $5.1 million

Non GAAP net income attributable to MPS per share of $0.03 vs $0.08

Adjusted EBITDA of $49.4 million vs $54.0 million

    Negative foreign exchange impact of $0.2 million

Adjusted EBITDA margin of 13.2% vs 13.4%

Early debt repayment of $20.0 million in June 2016

 

FY 2016 vs FY 2015:

 

GAAP sales of $1.66 billion vs $1.62 billion

    Negative foreign exchange impact of $77.2 million

GAAP operating income of $84.1 million vs $71.0 million

GAAP net income attributable to MPS of $2.1 million vs $6.5 million

GAAP net income attributable to MPS of $0.03 per share vs $0.10 per share

Non GAAP net income attributable to MPS of $48.0 million vs $21.7 million

Non GAAP net income attributable to MPS of $0.66 per share vs $0.35  per share

Adjusted EBITDA of $254.3 million vs $231.0 million.

    Negative foreign exchange impact of $12.4 million

Adjusted EBITDA margin of 15.3% vs 14.3%.

Early debt repayments totaling $60.0 million in 2016, excluding debt repayments from the IPO proceeds

 

Page 1 of 10


 

Marc Shore, Chief Executive Officer, commented, “We had a very successful 2016, notwithstanding some significant challenges.  EBITDA was a record $254.3 million despite a negative foreign exchange impact of $12.4 million.  EBITDA margin grew by 100 basis points over the prior year to 15.3%.  The business also generated approximately $109 million of free cash flow which allowed us to make early debt repayments of $60 million.  In addition to the challenges of foreign exchange, we were disappointed with top-line sales.  This was due to the fact that a number of our core customers’ businesses are below expectations in the current fiscal year.  

 

As we enter fiscal 2017, we are enthusiastic about our prospects. Our facility improvement plan is gaining traction and other measures that we have taken to enhance profitability are also being implemented.  The company also remains committed to sourcing strategic and accretive acquisitions and there are several opportunities in the pipeline.  However, foreign exchange will continue to be a significant negative impact in fiscal 2017.   The Brexit vote has resulted in a meaningful devaluation of the GBP and this will again impact both sales and EBITDA.”

   

Discussion of Fourth Quarter and Fiscal Year 2016 Results

 

GAAP net sales for 4Q FY 2016 and fiscal year 2016 were $373.8 million and $1,661.4 million vs net sales for 4Q FY 2015 and fiscal year 2015 of $402.5 million and $1,617.6 million.  4Q FY 2016 and fiscal year 2016 include negative foreign exchange effects of $6.0 million and $77.2 million when compared to the prior period.  On an end market basis, Consumer, Healthcare and Media comprised 48.4%, 44.3% and 7.3% of total net sales in 4Q FY 2016 respectively, and 50.6%, 38.5% and 10.9% of total net sales for the fiscal year ended 2016, respectively.

 

Net sales in the quarter and for the year to date period were impacted principally due to the foreign exchange effects noted above, as well as a decline in non-toy media sales compared to the prior year ($4.8 million and $36.8 million, respectively), the decline in sales of a Disney toy project where Disney has exited the business ($10.4 million and $30.8 million, respectively), and the decline in UK tobacco sales due to UK tobacco legislation ($3.3 million and $14.2 million, respectively).  The effect of the year over year Disney toy project and the UK tobacco decline is winding down and expected to impact year over year comparisons in 2017 by approximately $11.0 million and $5.9 million, respectively.

 

For the full fiscal year, gross margins continue to improve.  Gross margin for the quarter and for the year to date period were 19.4% and 21.3% respectively, vs 20.6% and 20.5% in the corresponding prior year periods.   Included in the 19.4% margin is approximately 170 basis points representing restructuring and plant closure costs. The improvement is principally due to the Company’s operational focus on plant manufacturing metrics, previously announced and achieved acquisition synergy targets, and appropriate cost savings capital investments.

 

GAAP operating income for 4Q FY 2016 was $10.3 million, vs $9.5 million for 4Q 2015.  GAAP operating income for fiscal 2016 was $84.1 million vs $71.0 million for fiscal 2015.  Included in the current fiscal period is approximately $27.0 million of stock compensation recorded in connection with the vesting of shares from the Company’s initial public offering.  Excluding this charge, operating income for fiscal 2016 would have been $111.1 million, an increase of $40.1 million or approximately 230 basis points when compared to the same period in the prior year.

 

Page 2 of 10


 

GAAP net loss attributable to MPS for 4Q FY 2016 was $6.7 million as compared to $4.9 million for 4Q FY 2015.  GAAP net income attributable to MPS for the Fiscal Years 2016 and 2015 were $2.1 million and $6.5 million respectively. GAAP net income in 4Q FY 2016 and Fiscal Year 2016 include negative foreign exchange effects of $0.2 million and $12.4 million. In addition, GAAP net income for YTD 2016 includes the previously mentioned stock compensation expense.

 

Non GAAP net income attributable to MPS for 4Q FY 2016 and fiscal year 2016 were $2.2 million and $48.0 million vs non GAAP net income attributable to MPS for 4Q FY 2015 and fiscal year 2015 of $5.1 million and $21.7 million.  Adjustments to non GAAP net income are principally net of tax adjustments related to stock compensation expense, restructuring charges associated with plant closures, foreign exchange, expenses associated with acquisition transactions and debt extinguishment related costs.

 

Adjusted EBITDA for 4Q FY 2016 was $49.4 million (13.2%) vs. $54.0 million (13.4%)  in 4Q FY 2015.  Adjusted EBITDA for the fiscal year 2016 was $254.3 million (15.3%) vs. $231.0 million (14.3%) in fiscal year 2015.  Adjusted EBITDA margin was driven by the Company’s operational focus on plant manufacturing metrics, previously announced and achieved acquisition synergy targets, and appropriate cost savings capital investments.

 

Cash balances as of June 30, 2016 were $44.8 million. There were no amounts outstanding under our revolving credit facility.  Total debt net of cash was $863.1 million including deferred finance fees and debt discount of $16.1 million. At June 30, 2016, trailing twelve months acquisition adjusted pro forma EBITDA was $255.2 million, and the pro forma leverage ratio was 3.46.

 

Fourth Quarter and Full Year 2016 Earnings Conference Call and Webcast

 

The Company will host a conference call on August 22, 2016 at 4:30pm ET, which can be accessed by dialing 877-705-6003 (domestic) or 201-493-6725 (international).  Supplemental materials for today’s call can also be found on the investor relations portion of the Company’s website

 

The  Company will also host a live webcast of its conference call which may be accessed on the Investor Relations section of the Company's website at multipkg.com. A replay will be available approximately three hours after the call, through August 29, 2016, accessible by dialing 877-870-5176 (domestic), or 858-384-5517 (international). The passcode for the replay is 13642269.

 

Non GAAP Financial Measures

The historical financial information included in this presentation includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted Net Income, Adjusted Operating Income, Adjusted EBITDA, Free Cash Flow and Free Cash Flow Yield.  Management uses these non GAAP financial measures in the analysis of financial and operating performance because they assist in the evaluation of underlying trends in our business.  Our use of the terms Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA, Free Cash Flow and Free Cash Flow Yield may differ from that of others in our industry. These items should not be considered as alternatives to net income (loss), operating income (loss), or any other performance measures prepared in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Adjusted Net Income, Adjusted Operating Income, and Adjusted EBITDA have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This presentation includes a reconciliation of certain non GAAP financial measures with the

Page 3 of 10


 

most directly comparable financial measures calculated in accordance with GAAP.

 

About Multi Packaging Solutions

Multi Packaging Solutions is a leading global provider of value-added packaging solutions to a diverse customer base across the healthcare, consumer and multi-media markets.  MPS provides its customers with an extensive array of print-based specialty packaging solutions, including premium folding cartons, inserts, labels and rigid packaging across a variety of substrates and finishes. MPS has manufacturing locations across North America, Europe and Asia.

 

Cautionary Statement Concerning Forward-Looking Statements

This release contains certain forward-looking statements regarding MPS and its subsidiaries. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of MPS’ control that may cause its business, industry, strategy, financing activities or actual results to differ materially. MPS undertakes no obligation to update or revise any of the forward looking statements contained herein, whether as a result of new information, future events or otherwise.

 

Contact:

Multi Packaging Solutions

Richard Zubek, Investor Relations

646-885-0005

ir@multipkg.com 

 

Source: Multi Packaging Solutions International Limited

MPSX-IR

 

 

Page 4 of 10


 

 

Multi Packaging Solutions International Limited And Subsidiaries

Consolidated Balance Sheets

(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

    

June 30, 

    

June 30, 

 

 

 

2016

 

2015

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,769

 

$

55,675

 

Accounts receivable, net

 

 

237,179

 

 

240,110

 

Inventories

 

 

165,617

 

 

171,836

 

Prepaid expenses and other current assets

 

 

30,742

 

 

26,892

 

Total current assets

 

 

478,307

 

 

494,513

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

 

 

 

 

Land

 

 

52,093

 

 

58,316

 

Buildings and improvements

 

 

65,827

 

 

58,368

 

Machinery and equipment

 

 

393,206

 

 

373,639

 

Furniture and fixtures

 

 

15,580

 

 

13,056

 

Construction in progress

 

 

12,689

 

 

12,255

 

Total

 

 

539,395

 

 

515,634

 

Less: Accumulated depreciation

 

 

(155,700)

 

 

(86,691)

 

Total property, plant and equipment, net

 

 

383,695

 

 

428,943

 

 

 

 

 

 

 

 

 

Other assets

 

 

 

 

 

 

 

Intangible assets, net

 

 

340,858

 

 

419,733

 

Goodwill

 

 

464,714

 

 

474,901

 

Deferred income taxes

 

 

7,210

 

 

16,451

 

Other assets

 

 

32,806

 

 

36,702

 

Total assets

 

$

1,707,590

 

$

1,871,243

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

171,935

 

$

176,431

 

Payroll and benefits

 

 

36,977

 

 

51,606

 

Other current liabilities

 

 

40,892

 

 

46,097

 

Short-term foreign borrowings

 

 

 —

 

 

3,488

 

Current portion of long-term debt

 

 

7,307

 

 

10,964

 

Income taxes payable

 

 

4,489

 

 

6,022

 

Total current liabilities

 

 

261,600

 

 

294,608

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

900,516

 

 

1,169,626

 

Deferred income taxes

 

 

72,625

 

 

86,490

 

Other long-term liabilities

 

 

29,955

 

 

31,829

 

Total liabilities

 

 

1,264,696

 

 

1,582,553

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Authorized share capital – $1.00 par value, 1,000,000,000 shares authorized

 

 

 

 

 

 

 

Preference shares – no shares issued

 

 

 —

 

 

 —

 

Common shares – 77,452,946 and 61,939,432 issued and outstanding

 

 

77,453

 

 

61,939

 

Additional paid-in capital

 

 

469,698

 

 

278,695

 

Accumulated deficit

 

 

(43,233)

 

 

(45,365)

 

Accumulated other comprehensive loss

 

 

(63,290)

 

 

(13,287)

 

Total Multi Packaging Solutions International Limited shareholders’ equity

 

 

440,628

 

 

281,982

 

Noncontrolling interest

 

 

2,266

 

 

6,708

 

Total shareholders’ equity

 

 

442,894

 

 

288,690

 

Total liabilities and shareholders’ equity

 

$

1,707,590

 

$

1,871,243

 

 

 

Page 5 of 10


 

 

 

 

 

 

Multi Packaging Solutions International Limited And Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

June 30, 

 

 

June 30, 

 

 

2016

    

2015

    

    

2016

    

2015

    

Net sales

$

373,836

 

$

402,524

 

 

$

1,661,428

 

$

1,617,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

301,241

 

 

319,604

 

 

 

1,307,020

 

 

1,285,673

 

Gross profit

 

72,595

 

 

82,920

 

 

 

354,408

 

 

331,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

61,557

 

 

61,586

 

 

 

239,706

 

 

241,638

 

Stock based and deferred compensation expense

 

(295)

 

 

4,319

 

 

 

26,769

 

 

5,722

 

Transaction related expenses

 

1,053

 

 

7,532

 

 

 

3,838

 

 

13,630

 

Total selling, general and administrative expenses

 

62,315

 

 

73,437

 

 

 

270,313

 

 

260,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

10,280

 

 

9,483

 

 

 

84,095

 

 

70,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income, net

 

(1,606)

 

 

(18)

 

 

 

(6,403)

 

 

10,625

 

Debt extinguishment charges

 

(36)

 

 

(1,019)

 

 

 

(3,967)

 

 

(1,019)

 

Interest expense

 

(14,902)

 

 

(21,395)

 

 

 

(64,543)

 

 

(75,437)

 

Total other expense, net

 

(16,544)

 

 

(22,432)

 

 

 

(74,913)

 

 

(65,831)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(6,264)

 

 

(12,949)

 

 

 

9,182

 

 

5,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(1,102)

 

 

8,092

 

 

 

(7,855)

 

 

1,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

(7,366)

 

 

(4,857)

 

 

 

1,327

 

 

7,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (income) loss attributable to noncontrolling interest

 

625

 

 

(2)

 

 

 

805

 

 

(527)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders of
Multi Packaging Solutions International Limited

$

(6,741)

 

$

(4,859)

 

 

$

2,132

 

$

6,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders of
Multi Packaging Solutions International Limited per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.09)

 

$

(0.08)

 

 

$

0.03

 

$

0.10

 

Diluted

$

(0.09)

 

$

(0.08)

 

 

$

0.03

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

77,453

 

 

61,939

 

 

 

72,661

 

 

61,939

 

Diluted

 

77,453

 

 

61,939

 

 

 

72,661

 

 

61,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative foreign currency translation adjustment

$

(21,607)

 

$

14,018

 

 

$

(44,371)

 

$

(38,813)

 

Adjustment on available-for-sale securities

 

(72)

 

 

(108)

 

 

 

17

 

 

6

 

Pension adjustments

 

(3,550)

 

 

13,570

 

 

 

(5,637)

 

 

12,780

 

Total other comprehensive (loss) income

 

(25,229)

 

 

27,480

 

 

 

(49,991)

 

 

(26,027)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

(32,595)

 

 

22,623

 

 

 

(48,664)

 

 

(19,001)

 

Comprehensive loss (income) attributable to non-controlling interests

 

625

 

 

(151)

 

 

 

805

 

 

(151)

 

Comprehensive loss attributable to shareholders of
Multi Packaging Solutions International Limited

$

(31,970)

 

$

22,472

 

 

$

(47,859)

 

$

(19,152)

 

 

 

Page 6 of 10


 

 

Multi Packaging Solutions International Limited And Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

June 30, 

 

 

June 30, 

 

 

2016

    

2015

    

 

2016

    

2015

    

Operating Activities

 

 

    

 

 

 

    

 

 

    

 

 

 

Net income

$

(7,366)

 

$

(4,857)

 

 

$

1,327

 

$

7,026

 

Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

17,858

 

 

19,950

 

 

 

73,683

 

 

78,035

 

Amortization expense

 

13,652

 

 

13,768

 

 

 

55,317

 

 

53,668

 

Amortization of debt discount and deferred financing fees

 

959

 

 

1,103

 

 

 

4,061

 

 

4,453

 

Debt extinguishment charges

 

36

 

 

1,019

 

 

 

3,967

 

 

1,019

 

Deferred income taxes

 

4,036

 

 

(4,070)

 

 

 

(460)

 

 

(9,477)

 

Stock compensation

 

10

 

 

4,178

 

 

 

26,054

 

 

5,159

 

Unrealized foreign currency loss (gain)

 

242

 

 

(8,490)

 

 

 

3,060

 

 

(11,355)

 

Impairment charges

 

2,026

 

 

 —

 

 

 

2,026

 

 

 —

 

Other

 

1,268

 

 

3,657

 

 

 

3,105

 

 

4,077

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

10,350

 

 

26,577

 

 

 

(1,537)

 

 

13,615

 

Inventories

 

(9,324)

 

 

(10,315)

 

 

 

(4,093)

 

 

3,021

 

Prepaid expenses and other current assets

 

(3,893)

 

 

5,273

 

 

 

(3,538)

 

 

1,137

 

Other assets

 

(3,834)

 

 

(15,059)

 

 

 

(11,035)

 

 

(10,246)

 

Accounts payable

 

14,842

 

 

21,720

 

 

 

1,347

 

 

(17,775)

 

Payroll and benefits

 

80

 

 

5,641

 

 

 

(13,030)

 

 

3,530

 

Other current liabilities

 

4,013

 

 

(11,235)

 

 

 

(5,997)

 

 

(4,239)

 

Income taxes payable

 

(1,048)

 

 

(4,288)

 

 

 

1,157

 

 

2,653

 

Other long-term liabilities

 

(152)

 

 

(1,176)

 

 

 

(2,742)

 

 

(15,684)

 

Net cash and cash equivalents provided by operating activities

 

43,755

 

 

43,396

 

 

 

132,672

 

 

108,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

(22,235)

 

 

(21,857)

 

 

 

(58,954)

 

 

(59,535)

 

Additions to intangible assets

 

(32)

 

 

(31)

 

 

 

(297)

 

 

(207)

 

Proceeds from sale of assets

 

1,610

 

 

945

 

 

 

4,226

 

 

6,907

 

Acquisitions of businesses, net of cash acquired

 

 —

 

 

514

 

 

 

(10,685)

 

 

(137,269)

 

Net cash and cash equivalents used in investing activities

 

(20,657)

 

 

(20,429)

 

 

 

(65,710)

 

 

(190,104)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from initial public offering

 

 —

 

 

 —

 

 

 

186,424

 

 

 —

 

Payments of offering costs

 

 —

 

 

 —

 

 

 

(7,024)

 

 

 —

 

Proceeds from issuance of long-term debt

 

 —

 

 

(3,195)

 

 

 

 —

 

 

133,650

 

Proceeds from short-term borrowings

 

3,126

 

 

22,607

 

 

 

47,628

 

 

171,456

 

Payments on short-term borrowings

 

(7,352)

 

 

(23,048)

 

 

 

(51,107)

 

 

(174,442)

 

Payments on long-term debt

 

(19,574)

 

 

(3,224)

 

 

 

(255,201)

 

 

(15,816)

 

Debt issuance costs

 

 —

 

 

(61)

 

 

 

 —

 

 

(5,020)

 

Net cash and cash equivalents (used in) provided by financing activities

 

(23,800)

 

 

(6,921)

 

 

 

(79,280)

 

 

109,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(1,080)

 

 

474

 

 

 

1,412

 

 

(199)

 

(Decrease) increase in cash and cash equivalents

 

(1,782)

 

 

16,520

 

 

 

(10,906)

 

 

28,142

 

Cash and cash equivalents—beginning

 

46,551

 

 

39,155

 

 

 

55,675

 

 

27,533

 

Cash and cash equivalents—ending

$

44,769

 

$

55,675

 

 

$

44,769

 

$

55,675

 

 

Page 7 of 10


 

 

Multi Packaging Solutions International Limited And Subsidiaries

Reconciliation of NonGAAP Results

Adjusted EBITDA, Adjusted Operating Income and Adjusted Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjusted EBITDA

 

For the Three Months Ended

 

For the Fiscal Year Ended

 

 

 

June 30, 

 

June 30, 

 

(amounts in thousands)

    

2016

    

2015

    

2016

    

2015

 

Consolidated net income

 

$

(7,366)

 

$

(4,857)

 

$

1,327

 

$

7,026

 

Depreciation and amortization

 

 

31,510

 

 

33,718

 

 

129,000

 

 

131,703

 

Interest expense

 

 

14,902

 

 

21,395

 

 

64,543

 

 

75,437

 

Income tax expense

 

 

1,102

 

 

(8,092)

 

 

7,855

 

 

(1,880)

 

EBITDA

 

 

40,148

 

 

42,164

 

 

202,725

 

 

212,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments related to operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction related expenses

 

 

1,053

 

 

7,532

 

 

3,838

 

 

13,630

 

Stock based and deferred compensation expenses

 

 

(296)

 

 

4,319

 

 

26,768

 

 

5,722

 

Purchase accounting adjustments

 

 

88

 

 

1,070

 

 

966

 

 

3,094

 

Restructuring related costs

 

 

6,415

 

 

929

 

 

10,684

 

 

6,419

 

Loss on sale of fixed assets

 

 

812

 

 

(61)

 

 

1,410

 

 

584

 

Other adjustments to operating income

 

 

(512)

 

 

(3,152)

 

 

(2,691)

 

 

(1,928)

 

Adjustments related to operating income (A)

 

 

7,560

 

 

10,637

 

 

40,975

 

 

27,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments related to non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

1,333

 

 

1,664

 

 

5,183

 

 

(12,171)

 

Debt extinguishment charges

 

 

37

 

 

1,019

 

 

3,968

 

 

1,019

 

Other adjustments to non-operating income

 

 

272

 

 

(1,470)

 

 

1,452

 

 

2,307

 

Adjustments related to non-operating income

 

 

1,642

 

 

1,213

 

 

10,603

 

 

(8,845)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total adjustments (B)

 

 

9,202

 

 

11,850

 

 

51,578

 

 

18,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

49,350

 

$

54,014

 

$

254,303

 

$

230,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-acquisition Adjusted EBITDA

 

 

 —

 

 

613

 

 

851

 

 

16,172

 

Proforma Adjusted EBITDA

 

$

49,350

 

$

54,627

 

$

255,154

 

$

247,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjusted Operating Income

 

For the Three Months Ended

 

For the Fiscal Year Ended

 

 

 

June 30, 

 

June 30, 

 

(amounts in thousands)

    

2016

    

2015

    

2016

    

2015

 

Operating income

 

$

10,280

 

$

9,483

 

$

84,095

 

$

70,977

 

Adjustments related to operating income (A)

 

 

7,560

 

 

10,637

 

 

40,975

 

 

27,521

 

Adjusted operating income

 

$

17,840

 

$

20,120

 

$

125,070

 

$

98,498

 

 

Page 8 of 10


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjusted Net Income

 

For the Three Months Ended

 

For the Fiscal Year Ended

 

 

 

June 30, 

 

June 30, 

 

(amounts in thousands, except per share data)

    

2016

    

2015

    

2016

    

2015

 

Consolidated net income

 

$

(7,366)

 

$

(4,857)

 

$

1,327

 

$

7,026

 

Adjustments related to net income (B)

 

 

9,202

 

 

11,850

 

 

51,578

 

 

18,676

 

Tax impact of adjusting entries

 

 

(268)

 

 

(1,862)

 

 

(5,713)

 

 

(3,496)

 

Adjusted net income

 

 

1,568

 

 

5,131

 

 

47,192

 

 

22,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (income) loss attributable to noncontrolling interest

 

 

625

 

 

(2)

 

 

805

 

 

(527)

 

Adjusted net income attributable to shareholders of
Multi Packaging Solutions International Limited

 

$

2,193

 

$

5,129

 

$

47,997

 

$

21,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of
common shares outstanding – diluted

 

 

77,453

 

 

61,939

 

 

72,661

 

 

61,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share

 

$

0.03

 

$

0.08

 

$

0.66

 

$

0.35

 

 

Page 9 of 10


 

 

Multi Packaging Solutions International Limited And Subsidiaries

Net Sales by Segment and Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Fiscal Year Ended

 

 

June 30, 

 

 

June 30, 

 

(amounts in thousands)

2016

    

2015

 

 

2016

    

2015

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

$

74,547

 

$

85,029

 

 

$

330,060

 

$

306,758

 

Healthcare

 

75,088

 

 

72,406

 

 

 

294,977

 

 

277,832

 

Multi-Media

 

23,975

 

 

38,312

 

 

 

159,416

 

 

153,298

 

 

$

173,610

 

$

195,747

 

 

$

784,453

 

$

737,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

$

91,500

 

$

102,632

 

 

$

441,891

 

$

469,136

 

Healthcare

 

84,453

 

 

79,791

 

 

 

323,055

 

 

346,777

 

Multi-Media

 

3,168

 

 

683

 

 

 

21,051

 

 

4,478

 

 

$

179,121

 

$

183,106

 

 

$

785,997

 

$

820,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

$

14,902

 

$

19,512

 

 

$

68,662

 

$

39,988

 

Healthcare

 

6,203

 

 

4,159

 

 

 

22,316

 

 

19,373

 

 

$

21,105

 

$

23,671

 

 

$

90,978

 

$

59,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

373,836

 

$

402,524

 

 

$

1,661,428

 

$

1,617,640

 

 

 

 

Multi Packaging Solutions International Limited And Subsidiaries

Free Cash Flow Reconciliation

 

 

 

 

 

 

 

 

 

 

 

For the Fiscal Year Ended

 

 

 

June 30, 

 

 

 

2016

    

2015

 

(amounts in thousands, except percentages)

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

254,303

 

$

230,962

 

Less: Capital Expenditures

 

 

(58,954)

 

 

(59,535)

 

Less: Cash Interest

 

 

(60,482)

 

 

(70,609)

 

Less: Cash Taxes

 

 

(12,596)

 

 

(6,158)

 

Less: Change in Core Working Capital (1)

 

 

(4,283)

 

 

(1,139)

 

Less: Pension Payments (2)

 

 

(8,880)

 

 

(9,420)

 

Free Cash Flow

 

$

109,108

 

$

84,101

 

 

 

 

 

 

 

 

 

Market Capitalization (3)

 

$

1,123,068

 

$

1,123,068

 

 

 

 

 

 

 

 

 

Free Cash Flow Yield (4)

 

 

9.7%

 

 

7.5%

 

 

(1)

Represents the impact of total cash flows associated with the change in accounts receivable, inventory and accounts payable, as per the Consolidated Statements of Cash Flows

(2)

Represents cash payments made for the Field Group Pension Plan in the United Kingdom

(3)

Represents estimated market capitalization using total shares outstanding as of June 30, 2016 (77,452,946) times estimated market price of MPSX shares ($14.50 per share)

(4)

Represents Free Cash Flow divided by Market Capitalization

 

 

Page 10 of 10