First-quarter 2019 Financial & Operating Highlights
- Net sales were 175.0 million USD, compared to 181.9 million USD in the prior-year period, a 3.8 percent decrease (or a decrease of 2.1 percent, excluding a 3.2 million USD currency impact).
- Gross profit was 34.0 million USD, or 19.4 percent of net sales compared to 33.7 million USD or 18.5 percent of net sales in the first quarter of the prior year.
- Net loss was 4.5 million USD, compared to a net loss of 3.0 million USD in the first quarter of 2018.
- Adjusted EBITDA was 9.7 million USD, compared to 11.9 million USD in the first quarter of 2018.
- E-commerce sales were approximately 13 percent of total U.S. & Canada retail sales, an increase of approximately 39 percent compared to the first quarter of 2018.
“During the first quarter the company drove improved gross margin dollars and percentage, as we achieved price increases in the majority of our markets and channels.” said Chief Executive Officer Mike Bauer. “This performance was offset by lower volumes in the U.S. food-service channel driven by the Federal Government shutdown and unusually severe weather throughout the country, which slowed traffic and demand. Lower sales in our non- U.S. regions and planned investments primarily related to strategic investments drew earnings below prior year, but in-line with our expectations.”
Mike Bauer continued, “In my first full month at Libbey, I’ve been busy meeting with employees and customers. While I still have plenty of ground to cover, I’ve been impressed with the drive and engagement of our talented team and with the customers who rely on our services and solutions. Libbey has a rich and storied history in the tabletop business supported by strong product innovation and an unwavering commitment to customer service, which is as important as ever in today’s world.
“The investments we’ve made in customer service, e-commerce, new products and ERP are paying dividends and position us well to further leverage and expand our leading market position. Going forward, we will become an even stronger partner for our customers as we continue to build new and innovative products and programs to meet the needs of their businesses and end users. We will remain disciplined and committed to driving efficiencies throughout the organization, while we improve our focus on cash generation in 2019 and beyond.”
- Net sales in the U.S. & Canada segment increased 1.8 percent, primarily driven by favourable price and product mix sold, partially offset by unfavourable channel mix and lower volume.
- In Latin America , net sales decreased 11.5 percent (a decrease of 10.0 percent excluding currency fluctuation) as a result of lower volume and unfavourable currency. In addition, the segment experienced unfavourable product mix within the retail and business-to-business channels.
- Net sales in the EMEA segment decreased 13.0 percent (a decrease of 6.1 percent excluding currency fluctuation), driven primarily by lower volume and an unfavourable currency impact, partially offset by favourable price and product mix across all three channels.
- Net sales in Other decreased 10.5 percent primarily as a result of unfavourable currency and lower volume.
- Net sales in the U.S. & Canada segment increased 1.8 percent, primarily driven by favourable price and product mix sold, partially offset by unfavourable channel mix and lower volume.
- In Latin America , net sales decreased 11.5 percent (a decrease of 10.0 percent excluding currency fluctuation) as a result of lower volume and unfavourable currency. In addition, the segment experienced unfavourable product mix within the retail and business-to-business channels.
- Net sales in the EMEA segment decreased 13.0 percent (a decrease of 6.1 percent excluding currency fluctuation), driven primarily by lower volume and an unfavourable currency impact, partially offset by favourable price and product mix across all three channels.
- Net sales in Other decreased 10.5 percent primarily as a result of unfavourable currency and lower volume.
Balance Sheet and Liquidity
- The Company had available capacity of 46.4 million USD under its ABL credit facility at March 31, 2019 , with 45.0 million USD in loans outstanding and cash on hand of 15.0 million USD.
- At March 31, 2019, Trade Working Capital, defined as inventories and accounts receivable less accounts payable, was 216.4 million USD, a 0.5 million USD increase from 215.9 million USD at March 31, 2018 . The increase was a result of higher inventories, partially offset by lower accounts receivable and higher accounts payable.
Jim Burmeister, senior vice president, chief financial officer, commented, “Our results underscore Libbey’s commitment to disciplined capital investment decisions, with particular focus on maximizing cash-flow generation and upholding the competitive strength of our balance sheet. This enables the Company to continue to invest in important growth investments in key areas including e-commerce and new product innovation while also committing capital to critical productivity enhancements such as the ERP project we initiated in 2018. Efficiencies generated by the implementation of this program will allow us to significantly improve our long-term operating performance, driving margin performance through revenue and cost improvements.”
For the original and full press release: https://investor.libbey.com/news-and-events/news/news-details/2019/Libbey-Inc-Announces-First-Quarter-2019-Results/default.aspx.