Post Holdings Reports Results for the Fourth Quarter and Fiscal Year 2015
Highlights:
- Fourth Quarter net sales of
$1.3 billion and Adjusted EBITDA of$193.1 million - Fiscal Year net sales of
$4.6 billion and Adjusted EBITDA of$657.4 million - Fiscal 2016 Adjusted EBITDA guidance of between
$780 million and $820 million
Fourth Quarter Consolidated Operating Results
Fourth quarter net sales were
Gross profit increased
Adjusted EBITDA was
The net loss attributable to common shareholders was
Fiscal Year 2015 Consolidated Operating Results
Net sales for fiscal year 2015 were
Other operating expenses, net were
Adjusted EBITDA was
For the fiscal year ended
Post Consumer Brands
Post Consumer Brands includes the
Net sales were
For fiscal year 2015, net sales were
Net sales were
Segment profit was
For fiscal year 2015, net sales were
Active Nutrition
Active Nutrition includes the protein shakes, bars and powders and nutritional supplement products of the PowerBar, Premier Protein and Dymatize brands.
Net sales were
Active Nutrition fourth quarter 2015 results were negatively impacted by reduced sales and unfavorable production absorption at Dymatize, which was driven by insufficient product supply resulting from the previously announced production issues that led to the decision to close the Dymatize manufacturing facility. Results were also negatively impacted by an inventory write-off of approximately
For fiscal year 2015, net sales were
Private Brands
Private Brands primarily includes nut butters, nut and dried fruit snacks and granola.
Net sales were
For fiscal year 2015, net sales were
Impairment of Goodwill and Other Intangible Assets
Non-cash goodwill and intangible asset impairment charges of
Interest, Other Expense and Income Tax
Interest expense, net was
Other expense was
Income tax benefit was
Outlook
Post management expects fiscal 2016 Adjusted EBITDA to be between
Use of Non-GAAP Measures
Certain financial measures in this release are non-GAAP measures, including Adjusted EBITDA and Adjusted net earnings. Management believes the use of such non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of the Company and its segments and in the analysis of ongoing operating trends. These measures may not be comparable to similarly-titled measures of other companies. See the tables provided in this release for reconciliations to the most directly comparable GAAP financial measures.
Conference Call to Discuss Earnings Results and Outlook
The Company will host a conference call on
Interested parties may join the conference call by dialing (877) 540-0891 in
A replay of the conference call will be available through
Forward-Looking Statements
Certain matters discussed in this release and on the conference call are forward-looking statements, including our Adjusted EBITDA outlook for fiscal 2016 and our capital expenditures expectations, including expectations for growth and integration activities and maintenance. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include our ability to realize the synergies contemplated by the acquisition of MOM Brands; our ability to promptly and effectively integrate the MOM Brands business; our high leverage and substantial debt, including covenants that restrict the operation of our business; our ability to service outstanding debt or obtain additional financing, including secured and unsecured debt; our ability to continue to compete in our product markets and our ability to retain market position; our ability to identify and complete acquisitions, manage growth and integrate acquisitions; changes in our cost structure, management, financing and business operations; significant volatility in the costs of certain raw materials, commodities, packaging or energy used to manufacture our products; our ability to maintain competitive pricing, introduce new products or successfully manage costs; our ability to successfully implement business strategies to reduce costs; impairment in the carrying value of goodwill or other intangibles; the loss or bankruptcy of a significant customer; allegations that our products cause injury or illness, product recalls and product liability claims and other litigation; our ability to anticipate and respond to changes in consumer preferences and trends; changes in economic conditions and consumer demand for our products; disruptions in the U.S. and global capital and credit markets; labor strikes, work stoppages or unionization efforts; legal and regulatory factors, including changes in advertising and labeling laws, food safety and laws and regulations governing animal feeding operations; our ability to comply with increased regulatory scrutiny related to certain of our products and/or international sales; the ultimate impact litigation may have on us, including the lawsuit (to which
About
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Sales | $ | 1,309.8 | $ | 1,043.1 | $ | 4,648.2 | $ | 2,411.1 | |||||||
Cost of goods sold | 976.5 | 814.4 | 3,473.8 | 1,789.9 | |||||||||||
Gross Profit | 333.3 | 228.7 | 1,174.4 | 621.2 | |||||||||||
Selling, general and administrative expenses | 197.2 | 139.2 | 734.1 | 459.5 | |||||||||||
Amortization of intangible assets | 37.8 | 32.0 | 141.7 | 70.8 | |||||||||||
Impairment of goodwill and other intangible assets | 60.8 | 295.6 | 60.8 | 295.6 | |||||||||||
Other operating (income) expenses, net | (3.3 | ) | 2.5 | 25.1 | 3.0 | ||||||||||
Operating Profit (Loss) | 40.8 | (240.6 | ) | 212.7 | (207.7 | ) | |||||||||
Interest expense, net | 102.6 | 60.4 | 287.5 | 183.7 | |||||||||||
Other expense | 51.0 | 28.7 | 92.5 | 35.5 | |||||||||||
Loss before Income Taxes | (112.8 | ) | (329.7 | ) | (167.3 | ) | (426.9 | ) | |||||||
Income tax benefit | (40.3 | ) | (42.3 | ) | (52.0 | ) | (83.7 | ) | |||||||
Net Loss | (72.5 | ) | (287.4 | ) | (115.3 | ) | (343.2 | ) | |||||||
Preferred stock dividends | (4.3 | ) | (4.3 | ) | (17.0 | ) | (15.4 | ) | |||||||
Net Loss Available to Common Shareholders | $ | (76.8 | ) | $ | (291.7 | ) | $ | (132.3 | ) | $ | (358.6 | ) | |||
Net Loss per Common Share: | |||||||||||||||
Basic | $ | (1.21 | ) | $ | (5.86 | ) | $ | (2.33 | ) | $ | (9.03 | ) | |||
Diluted | $ | (1.21 | ) | $ | (5.86 | ) | $ | (2.33 | ) | $ | (9.03 | ) | |||
Weighted-Average Common Shares Outstanding: | |||||||||||||||
Basic | 63.6 | 49.8 | 56.7 | 39.7 | |||||||||||
Diluted | 63.6 | 49.8 | 56.7 | 39.7 | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
(in millions) | |||||||
September 30, 2015 | September 30, 2014 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 841.4 | $ | 268.4 | |||
Restricted cash | 18.8 | 84.8 | |||||
Receivables, net | 366.2 | 413.7 | |||||
Inventories | 465.3 | 380.7 | |||||
Deferred income taxes | 47.7 | 27.0 | |||||
Prepaid expenses and other current assets | 42.3 | 44.4 | |||||
Total Current Assets | 1,781.7 | 1,219.0 | |||||
Property, net | 1,333.2 | 831.9 | |||||
Goodwill | 3,072.8 | 2,886.7 | |||||
Other intangible assets, net | 2,969.3 | 2,643.0 | |||||
Other assets | 63.4 | 150.5 | |||||
Total Assets | $ | 9,220.4 | $ | 7,731.1 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt | $ | 16.0 | $ | 25.6 | |||
Accounts payable | 265.2 | 225.0 | |||||
Other current liabilities | 329.8 | 269.3 | |||||
Total Current Liabilities | 611.0 | 519.9 | |||||
Long-term debt | 4,511.4 | 3,830.5 | |||||
Deferred income taxes | 831.8 | 915.1 | |||||
Other liabilities | 290.2 | 182.4 | |||||
Total Liabilities | 6,244.4 | 5,447.9 | |||||
Shareholders’ Equity | |||||||
Preferred stock | 0.1 | 0.1 | |||||
Common stock | 0.6 | 0.5 | |||||
Additional paid-in capital | 3,538.8 | 2,669.3 | |||||
Accumulated deficit | (421.0 | ) | (305.7 | ) | |||
Accumulated other comprehensive loss | (89.1 | ) | (27.6 | ) | |||
Treasury stock, at cost | (53.4 | ) | (53.4 | ) | |||
Total Shareholders’ Equity | 2,976.0 | 2,283.2 | |||||
Total Liabilities and Shareholders’ Equity | $ | 9,220.4 | $ | 7,731.1 | |||
SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) | |||||||
(in millions) | |||||||
Year Ended September 30, |
|||||||
2015 | 2014 | ||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 451.6 | $ | 183.1 | |||
Investing activities, including capital expenditures of $107.9 and $115.5 | (1,248.7 | ) | (3,793.6 | ) | |||
Financing activities | 1,372.4 | 3,484.2 | |||||
Effect of exchange rate changes on cash and cash equivalents | (2.3 | ) | (7.3 | ) | |||
Net increase (decrease) in cash and cash equivalents | $ | 573.0 | $ | (133.6 | ) | ||
SEGMENT INFORMATION (Unaudited) | |||||||||||||||||
(in millions) | |||||||||||||||||
Quarter Ended September 30, |
Year Ended September 30, |
||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales | |||||||||||||||||
Post Consumer Brands | $ | 442.5 | $ | 248.5 | $ | 1,260.8 | $ | 963.1 | |||||||||
Michael Foods Group | 591.4 | 595.4 | 2,305.7 | 874.8 | |||||||||||||
Active Nutrition | 136.2 | 98.8 | 555.0 | 293.3 | |||||||||||||
Private Brands | 140.3 | 100.6 | 529.7 | 280.6 | |||||||||||||
Eliminations | (0.6 | ) | (0.2 | ) | (3.0 | ) | (0.7 | ) | |||||||||
Total | $ | 1,309.8 | $ | 1,043.1 | $ | 4,648.2 | $ | 2,411.1 | |||||||||
Segment Profit (Loss) | |||||||||||||||||
Post Consumer Brands | $ | 65.5 | $ | 47.0 | $ | 205.5 | $ | 173.4 | |||||||||
Michael Foods Group | 57.9 | 32.4 | 188.2 | 21.6 | |||||||||||||
Active Nutrition | (10.9 | ) | (3.7 | ) | (13.8 | ) | (1.8 | ) | |||||||||
Private Brands | 13.7 | 7.5 | 41.5 | 19.0 | |||||||||||||
Total segment profit | 126.2 | 83.2 | 421.4 | 212.2 | |||||||||||||
General corporate expenses and other | 24.6 | 28.2 | 147.9 | 124.3 | |||||||||||||
Impairment of goodwill and other intangible assets | 60.8 | 295.6 | 60.8 | 295.6 | |||||||||||||
Interest expense | 102.6 | 60.4 | 287.5 | 183.7 | |||||||||||||
Other expense, net | 51.0 | 28.7 | 92.5 | 35.5 | |||||||||||||
Loss before Income Taxes | $ | (112.8 | ) | $ | (329.7 | ) | $ | (167.3 | ) | $ | (426.9 | ) | |||||
SUPPLEMENTAL SEGMENT INFORMATION
Results include three acquisitions completed in fiscal 2015 and four acquisitions completed in fiscal 2014. Each acquired business is included in results as of its respective closing date as listed below:
Business | Segment | Acquisition Date | ||
Dakota Growers Pasta Company | Michael Foods Group | January 1, 2014 | ||
Golden Boy Foods | Private Brands | February 1, 2014 | ||
Dymatize Enterprises | Active Nutrition | February 1, 2014 | ||
Michael Foods | Michael Foods Group | June 2, 2014 | ||
PowerBar and related assets | Active Nutrition | October 1, 2014 | ||
American Blanching Company | Private Brands | November 1, 2014 | ||
MOM Brands Company | Post Consumer Brands | May 4, 2015 | ||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||
(in millions) | |||||||||||||||
Quarter Ended September 30, |
Year Ended September 30, |
||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Loss | $ | (72.5 | ) | $ | (287.4 | ) | $ | (115.3 | ) | $ | (343.2 | ) | |||
Income tax benefit | (40.3 | ) | (42.3 | ) | (52.0 | ) | (83.7 | ) | |||||||
Interest expense, net | 102.6 | 60.4 | 287.5 | 183.7 | |||||||||||
Depreciation and amortization, including accelerated depreciation | 76.1 | 61.9 | 272.8 | 155.8 | |||||||||||
Non-cash stock-based compensation | 2.5 | 3.5 | 22.7 | 14.5 | |||||||||||
Transaction costs | 0.8 | 1.4 | 12.9 | 27.7 | |||||||||||
Integration costs | 6.4 | 1.1 | 15.7 | 5.3 | |||||||||||
Restructuring and plant closure costs | 10.3 | 1.8 | 25.6 | 5.6 | |||||||||||
Non-cash mark-to-market adjustments and settlements on interest rate swaps | 51.0 | 28.7 | 92.5 | 35.5 | |||||||||||
Impairment of goodwill and other intangible assets | 60.8 | 295.6 | 60.8 | 295.6 | |||||||||||
Loss on assets held for sale | 6.8 | 5.4 | 34.2 | 5.4 | |||||||||||
Inventory valuation adjustments on acquired businesses | — | 1.1 | 20.2 | 26.1 | |||||||||||
Mark-to-market adjustments on commodity hedges | 7.0 | 9.3 | (4.1 | ) | 9.8 | ||||||||||
Losses on hedge of purchase price of foreign currency denominated acquisitions | — | — | — | 13.1 | |||||||||||
Purchase price adjustment on acquisition | (9.5 | ) | — | (9.7 | ) | — | |||||||||
Gain on sale of plant | (7.0 | ) | — | (7.0 | ) | — | |||||||||
Gain from insurance and indemnification proceeds | (5.1 | ) | (3.4 | ) | (6.1 | ) | (3.4 | ) | |||||||
Foreign currency loss on intercompany loans | 3.2 | 0.8 | 6.8 | 0.8 | |||||||||||
Gain on change in fair value of acquisition earn-out | — | (2.6 | ) | (0.7 | ) | (4.7 | ) | ||||||||
Legal settlement | — | — | — | (2.0 | ) | ||||||||||
Spin-Off costs/post Spin-Off costs | — | 2.0 | 0.6 | 2.6 | |||||||||||
Adjusted EBITDA | $ | 193.1 | $ | 137.3 | $ | 657.4 | $ | 344.5 | |||||||
Adjusted EBITDA as a percentage of Net Sales | 14.7 | % | 13.2 | % | 14.1 | % | 14.3 | % | |||||||
RECONCILIATION OF SEGMENT PROFIT (LOSS) TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||||||||||
QUARTER ENDED SEPTEMBER 30, 2015 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Post Consumer Brands |
Michael Foods Group |
Active Nutrition |
Private Brands |
Corporate/ Other |
Total | ||||||||||||||||||
Segment Profit (Loss) | $ | 65.5 | $ | 57.9 | $ | (10.9 | ) | $ | 13.7 | $ | — | $ | 126.2 | ||||||||||
General corporate expenses and other | — | — | — | — | (24.6 | ) | (24.6 | ) | |||||||||||||||
Impairment of goodwill and other intangible assets | (3.8 | ) | — | (57.0 | ) | — | — | (60.8 | ) | ||||||||||||||
Operating Profit (Loss) | 61.7 | 57.9 | (67.9 | ) | 13.7 | (24.6 | ) | 40.8 | |||||||||||||||
Depreciation and amortization, including accelerated depreciation | 27.6 | 33.5 | 6.3 | 6.1 | 2.6 | 76.1 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 2.5 | 2.5 | |||||||||||||||||
Transaction costs | (0.1 | ) | — | — | — | 0.9 | 0.8 | ||||||||||||||||
Integration costs | 5.6 | — | 0.8 | — | — | 6.4 | |||||||||||||||||
Restructuring and plant closure costs | — | — | — | — | 10.3 | 10.3 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 3.8 | — | 57.0 | — | — | 60.8 | |||||||||||||||||
Loss on assets held for sale | — | — | — | — | 6.8 | 6.8 | |||||||||||||||||
Mark-to-market adjustments on commodity hedges | 1.3 | 2.5 | — | — | 3.2 | 7.0 | |||||||||||||||||
Purchase price adjustment on acquisition | — | — | — | — | (9.5 | ) | (9.5 | ) | |||||||||||||||
Gain on sale of plant | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||
Gain from insurance and indemnification proceeds | — | (5.1 | ) | — | — | — | (5.1 | ) | |||||||||||||||
Foreign currency loss on intercompany loans | — | 1.2 | — | 1.5 | 0.5 | 3.2 | |||||||||||||||||
Adjusted EBITDA | $ | 99.9 | $ | 90.0 | $ | (3.8 | ) | $ | 21.3 | $ | (14.3 | ) | $ | 193.1 | |||||||||
Adjusted EBITDA as a percentage of Net Sales | 22.6 | % | 15.2 | % | (2.8 | )% | 15.2 | % | — | 14.7 | % | ||||||||||||
RECONCILIATION OF SEGMENT PROFIT (LOSS) TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||||||||||
QUARTER ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Post Consumer Brands |
Michael Foods Group |
Active Nutrition |
Private Brands |
Corporate/ Other |
Total | ||||||||||||||||||
Segment Profit (Loss) | $ | 47.0 | $ | 32.4 | $ | (3.7 | ) | $ | 7.5 | $ | — | $ | 83.2 | ||||||||||
General corporate expenses and other | — | — | — | — | (28.2 | ) | (28.2 | ) | |||||||||||||||
Impairment of goodwill and other intangible assets | (264.3 | ) | — | (31.3 | ) | — | — | (295.6 | ) | ||||||||||||||
Operating (Loss) Profit | (217.3 | ) | 32.4 | (35.0 | ) | 7.5 | (28.2 | ) | (240.6 | ) | |||||||||||||
Depreciation and amortization, including accelerated depreciation | 12.7 | 36.1 | 5.6 | 4.9 | 2.6 | 61.9 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 3.5 | 3.5 | |||||||||||||||||
Transaction costs | — | — | — | — | 1.4 | 1.4 | |||||||||||||||||
Integration costs | — | — | 0.5 | — | 0.6 | 1.1 | |||||||||||||||||
Restructuring and plant closure costs | — | — | — | — | 1.8 | 1.8 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 264.3 | — | 31.3 | — | — | 295.6 | |||||||||||||||||
Loss on assets held for sale | — | — | — | — | 5.4 | 5.4 | |||||||||||||||||
Inventory valuation adjustments on acquired businesses | — | 1.1 | — | — | — | 1.1 | |||||||||||||||||
Mark-to-market adjustments on commodity hedges | — | 5.8 | — | — | 3.5 | 9.3 | |||||||||||||||||
Gain from insurance and indemnification proceeds | — | (3.4 | ) | — | — | — | (3.4 | ) | |||||||||||||||
Foreign currency loss on intercompany loans | — | 0.6 | — | — | 0.2 | 0.8 | |||||||||||||||||
Gain on change in fair value of acquisition earn-out | — | — | — | — | (2.6 | ) | (2.6 | ) | |||||||||||||||
Spin-Off costs/post Spin-Off costs | — | — | — | — | 2.0 | 2.0 | |||||||||||||||||
Adjusted EBITDA | $ | 59.7 | $ | 72.6 | $ | 2.4 | $ | 12.4 | $ | (9.8 | ) | $ | 137.3 | ||||||||||
Adjusted EBITDA as a percentage of Net Sales | 24.0 | % | 12.2 | % | 2.4 | % | 12.3 | % | — | 13.2 | % | ||||||||||||
RECONCILIATION OF SEGMENT PROFIT (LOSS) TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||||||||||
YEAR ENDED SEPTEMBER 30, 2015 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Post Consumer Brands |
Michael Foods Group |
Active Nutrition |
Private Brands |
Corporate/ Other |
Total | ||||||||||||||||||
Segment Profit (Loss) | $ | 205.5 | $ | 188.2 | $ | (13.8 | ) | $ | 41.5 | $ | — | $ | 421.4 | ||||||||||
General corporate expenses and other | — | — | — | — | (147.9 | ) | (147.9 | ) | |||||||||||||||
Impairment of goodwill and other intangible assets | (3.8 | ) | — | (57.0 | ) | — | — | (60.8 | ) | ||||||||||||||
Operating Profit (Loss) | 201.7 | 188.2 | (70.8 | ) | 41.5 | (147.9 | ) | 212.7 | |||||||||||||||
Depreciation and amortization, including accelerated depreciation | 71.2 | 142.3 | 26.9 | 24.9 | 7.5 | 272.8 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 22.7 | 22.7 | |||||||||||||||||
Transaction costs | — | — | — | — | 12.9 | 12.9 | |||||||||||||||||
Integration costs | 8.6 | — | 5.0 | 0.7 | 1.4 | 15.7 | |||||||||||||||||
Restructuring and plant closure costs | — | — | — | — | 25.6 | 25.6 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 3.8 | — | 57.0 | — | — | 60.8 | |||||||||||||||||
Loss on assets held for sale | — | — | — | — | 34.2 | 34.2 | |||||||||||||||||
Inventory valuation adjustments on acquired businesses | 17.0 | — | 1.9 | 1.3 | — | 20.2 | |||||||||||||||||
Mark-to-market adjustments on commodity hedges | 0.3 | (6.0 | ) | — | — | 1.6 | (4.1 | ) | |||||||||||||||
Purchase price adjustment on acquisition | — | — | — | — | (9.7 | ) | (9.7 | ) | |||||||||||||||
Gain on sale of plant | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||
Gain from insurance and indemnification proceeds | — | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||||
Foreign currency loss on intercompany loans | — | 2.9 | 0.5 | 1.6 | 1.8 | 6.8 | |||||||||||||||||
Gain on change in fair value of acquisition earn-out | — | — | — | — | (0.7 | ) | (0.7 | ) | |||||||||||||||
Spin-Off costs/post Spin-Off costs | — | — | — | — | 0.6 | 0.6 | |||||||||||||||||
Adjusted EBITDA | $ | 302.6 | $ | 321.3 | $ | 20.5 | $ | 70.0 | $ | (57.0 | ) | $ | 657.4 | ||||||||||
Adjusted EBITDA as a percentage of Net Sales | 24.0 | % | 13.9 | % | 3.7 | % | 13.2 | % | — | 14.1 | % | ||||||||||||
RECONCILIATION OF SEGMENT PROFIT (LOSS) TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||||||||||
YEAR ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Post Consumer Brands |
Michael Foods Group |
Active Nutrition |
Private Brands |
Corporate/ Other |
Total | ||||||||||||||||||
Segment Profit (Loss) | $ | 173.4 | $ | 21.6 | $ | (1.8 | ) | $ | 19.0 | $ | — | $ | 212.2 | ||||||||||
General corporate expenses and other | — | — | — | — | (124.3 | ) | (124.3 | ) | |||||||||||||||
Impairment of goodwill and other intangible assets | (264.3 | ) | — | (31.3 | ) | — | — | (295.6 | ) | ||||||||||||||
Operating (Loss) Profit | (90.9 | ) | 21.6 | (33.1 | ) | 19.0 | (124.3 | ) | (207.7 | ) | |||||||||||||
Depreciation and amortization, including accelerated depreciation | 51.6 | 56.6 | 17.0 | 15.7 | 14.9 | 155.8 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 14.5 | 14.5 | |||||||||||||||||
Transaction costs | — | — | 0.3 | — | 27.4 | 27.7 | |||||||||||||||||
Integration costs | — | — | 0.5 | — | 4.8 | 5.3 | |||||||||||||||||
Restructuring and plant closure costs | — | — | — | — | 5.6 | 5.6 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 264.3 | — | 31.3 | — | — | 295.6 | |||||||||||||||||
Loss on assets held for sale | — | — | — | — | 5.4 | 5.4 | |||||||||||||||||
Inventory valuation adjustments on acquired businesses | — | 21.0 | 3.9 | 1.2 | — | 26.1 | |||||||||||||||||
Mark-to-market adjustments on commodity hedges | — | 6.9 | — | — | 2.9 | 9.8 | |||||||||||||||||
Losses on hedge of purchase price of foreign currency denominated acquisition | — | — | — | — | 13.1 | 13.1 | |||||||||||||||||
Gain from insurance and indemnification proceeds | — | (3.4 | ) | — | — | — | (3.4 | ) | |||||||||||||||
Foreign currency loss on intercompany loans | — | 0.6 | — | — | 0.2 | 0.8 | |||||||||||||||||
Gain on change in fair value of acquisition earn-out | — | — | — | — | (4.7 | ) | (4.7 | ) | |||||||||||||||
Legal settlement | — | — | — | — | (2.0 | ) | (2.0 | ) | |||||||||||||||
Spin-Off costs/post Spin-Off costs | — | — | — | — | 2.6 | 2.6 | |||||||||||||||||
Adjusted EBITDA | $ | 225.0 | $ | 103.3 | $ | 19.9 | $ | 35.9 | $ | (39.6 | ) | $ | 344.5 | ||||||||||
Adjusted EBITDA as a percentage of Net Sales | 23.4 | % | 11.8 | % | 6.8 | % | 12.8 | % | — | 14.3 | % | ||||||||||||
RECONCILIATION OF NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | ||||||||||||||||
TO ADJUSTED NET EARNINGS (LOSS) AVAILABLE TO COMMON SHAREHOLDERS (Unaudited) | ||||||||||||||||
(in millions, except per share data) | ||||||||||||||||
Quarter Ended September 30, |
Year Ended September 30, |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net Loss Available to Common Shareholders | $ | (76.8 | ) | $ | (291.7 | ) | $ | (132.3 | ) | $ | (358.6 | ) | ||||
Adjustments: | ||||||||||||||||
Transaction costs | 0.8 | 1.4 | 12.9 | 27.7 | ||||||||||||
Integration costs | 6.4 | 1.1 | 15.7 | 5.3 | ||||||||||||
Restructuring and plant closure costs, including accelerated depreciation | 11.4 | 3.0 | 27.7 | 13.6 | ||||||||||||
Non-cash mark-to-market adjustments and settlements on interest rate swaps | 51.0 | 28.7 | 92.5 | 35.5 | ||||||||||||
Impairment of goodwill and other intangible assets | 60.8 | 295.6 | 60.8 | 295.6 | ||||||||||||
Loss on assets held for sale | 6.8 | 5.4 | 34.2 | 5.4 | ||||||||||||
Inventory valuation adjustments on acquired businesses | — | 1.1 | 20.2 | 26.1 | ||||||||||||
Mark-to-market adjustments on commodity hedges | 7.0 | 9.3 | (4.1 | ) | 9.8 | |||||||||||
Losses on hedge of purchase price of foreign currency denominated acquisition | — | — | — | 13.1 | ||||||||||||
Purchase price adjustment on acquisition | (9.5 | ) | — | (9.7 | ) | — | ||||||||||
Gain on sale of plant | (7.0 | ) | — | (7.0 | ) | — | ||||||||||
Gain from insurance and indemnification proceeds | (5.1 | ) | (3.4 | ) | (6.1 | ) | (3.4 | ) | ||||||||
Foreign currency loss on intercompany loans | 3.2 | 0.8 | 6.8 | 0.8 | ||||||||||||
Gain on change in fair value of acquisition earn-out | — | (2.6 | ) | (0.7 | ) | (4.7 | ) | |||||||||
Legal settlement | — | — | — | (2.0 | ) | |||||||||||
Spin-Off costs/post Spin-Off costs | — | 2.0 | 0.6 | 2.6 | ||||||||||||
Total Net Adjustments | 125.8 | 342.4 | 243.8 | 425.4 | ||||||||||||
Income tax effect on adjustments | (44.9 | ) | (43.8 | ) | (75.8 | ) | (83.4 | ) | ||||||||
Adjusted Net Earnings (Loss) Available to Common Shareholders | $ | 4.1 | $ | 6.9 | $ | 35.7 | $ | (16.6 | ) | |||||||
Weighted-Average Shares Outstanding – Diluted (1) | 65.3 | 51.6 | 57.9 | 39.7 | ||||||||||||
Adjusted Diluted Net Earnings (Loss) per Common Share | $ | 0.06 | $ | 0.13 | $ | 0.62 | $ | (0.42 | ) | |||||||
(1) The quarters ended September 30, 2015 and September 30, 2014 include 1.7 million and 1.8 million, respectively, incremental shares that were considered anti-dilutive for GAAP earnings for the quarter. The year ended September 30, 2015 includes 1.2 million incremental shares that were considered anti-dilutive for GAAP earnings for the quarter. | ||||||||||||||||