Delaware
|
20-5234618
|
(State or other jurisdiction
of incorporation or organization)
|
(IRS employer
identification number)
|
101 Oakley Street
Evansville, Indiana
|
47710
|
(Address of principal executive offices)
|
(Zip code)
|
Class
|
Outstanding at January 30, 2015
|
|
Common Stock, $.01 par value per share
|
118.9 million shares
|
Page No. | ||
Part I. Financial Information
|
||
Part II. Other Information
|
||
Quarterly Period Ended
|
||||||||
December 27, 2014
|
December 28, 2013
|
|||||||
Net sales
|
$ | 1,220 | $ | 1,140 | ||||
Costs and expenses:
|
||||||||
Cost of goods sold
|
1,037 | 964 | ||||||
Selling, general and administrative
|
86 | 77 | ||||||
Amortization of intangibles
|
25 | 26 | ||||||
Restructuring and impairment charges
|
4 | 10 | ||||||
Operating income
|
68 | 63 | ||||||
Other income, net
|
(1 | ) | (1 | ) | ||||
Interest expense, net
|
53 | 55 | ||||||
Income before income taxes
|
16 | 9 | ||||||
Income tax expense
|
3 | 3 | ||||||
Net income
|
$ | 13 | $ | 6 | ||||
Net income per share:
|
||||||||
Basic
|
$ | 0.11 | $ | 0.05 | ||||
Diluted
|
0.11 | 0.05 | ||||||
Outstanding weighted-average shares:
|
||||||||
Basic
|
118.2 | 115.9 | ||||||
Diluted
|
122.9 | 120.5 |
Quarterly Period Ended
|
||||||||
December 27, 2014
|
December 28, 2013
|
|||||||
Net income
|
$ | 13 | $ | 6 | ||||
Currency translation
|
(14 | ) | (1 | ) | ||||
Interest rate hedges
|
(7 | ) | — | |||||
Provision for income taxes related to other comprehensive income items
|
2 | — | ||||||
Comprehensive income (loss)
|
$ | (6 | ) | $ | 5 |
December 27, 2014
|
September 27, 2014
|
|||||||
Assets
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 53 | $ | 129 | ||||
Accounts receivable
(less allowance of $3 at December 27, 2014 and $3 at September 27, 2014)
|
442 | 491 | ||||||
Inventories:
|
||||||||
Finished goods
|
362 | 353 | ||||||
Raw materials and supplies
|
257 | 251 | ||||||
619 | 604 | |||||||
Deferred income taxes
|
249 | 166 | ||||||
Prepaid expenses and other current assets
|
39 | 42 | ||||||
Total current assets
|
1,402 | 1,432 | ||||||
Property, plant, and equipment, net
|
1,331 | 1,364 | ||||||
Goodwill, intangible assets and deferred costs, net
|
2,442 | 2,471 | ||||||
Other assets
|
1 | 1 | ||||||
Total assets
|
$ | 5,176 | $ | 5,268 | ||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 352 | $ | 395 | ||||
Accrued expenses and other current liabilities
|
334 | 314 | ||||||
Current portion of long-term debt
|
56 | 58 | ||||||
Total current liabilities
|
742 | 767 | ||||||
Long-term debt, less current portion
|
3,756 | 3,860 | ||||||
Deferred income taxes
|
469 | 386 | ||||||
Other long-term liabilities
|
302 | 356 | ||||||
Total liabilities
|
5,269 | 5,369 | ||||||
Redeemable non-controlling interest
|
13 | 13 | ||||||
Stockholders’ equity (deficit)
|
||||||||
Common stock
(118.8 and 118.0 shares issued, respectively)
|
1 | 1 | ||||||
Additional paid-in capital
|
381 | 367 | ||||||
Non-controlling interest
|
3 | 3 | ||||||
Accumulated deficit
|
(429 | ) | (442 | ) | ||||
Accumulated other comprehensive loss
|
(62 | ) | (43 | ) | ||||
Total stockholders’ equity (deficit)
|
(106 | ) | (114 | ) | ||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 5,176 | $ | 5,268 |
Common Stock
|
Additional Paid-in Capital
|
Non-controlling Interest
|
Accumulated Other Comprehensive Loss
|
Accumulated Deficit
|
Total
|
|||||||||||||||||||
Balance at September 28, 2013
|
$ | 1 | $ | 322 | $ | 3 | $ | (18 | ) | $ | (504 | ) | $ | (196 | ) | |||||||||
Proceeds from issuance of common stock
|
— | 3 | — | — | — | 3 | ||||||||||||||||||
Stock compensation expense
|
— | 5 | — | — | — | 5 | ||||||||||||||||||
Net income
|
— | — | — | — | 6 | 6 | ||||||||||||||||||
Currency translation
|
— | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Balance at December 28, 2013
|
$ | 1 | $ | 330 | $ | 3 | $ | (19 | ) | $ | (498 | ) | $ | (183 | ) | |||||||||
Balance at September 27, 2014
|
$ | 1 | $ | 367 | $ | 3 | $ | (43 | ) | $ | (442 | ) | $ | (114 | ) | |||||||||
Proceeds from issuance of common stock
|
— | 7 | — | — | — | 7 | ||||||||||||||||||
Stock compensation expense
|
— | 7 | — | — | — | 7 | ||||||||||||||||||
Net income
|
— | — | — | — | 13 | 13 | ||||||||||||||||||
Interest rate hedge, net of tax
|
— | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Currency translation
|
— | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||
Balance at December 27, 2014
|
$ | 1 | $ | 381 | $ | 3 | $ | (62 | ) | $ | (429 | ) | $ | (106 | ) | |||||||||
Quarterly Period Ended
|
||||||||
December 27,
2014
|
December 28,
2013
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$ | 13 | $ | 6 | ||||
Adjustments to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
66 | 59 | ||||||
Amortization of intangibles
|
25 | 26 | ||||||
Non-cash interest expense
|
2 | 2 | ||||||
Deferred income tax
|
3 | 4 | ||||||
Stock compensation expense
|
7 | 5 | ||||||
Impairment of long-lived assets
|
2 | 2 | ||||||
Other non-cash items
|
(2 | ) | 1 | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
45 | 51 | ||||||
Inventories
|
(18 | ) | 14 | |||||
Prepaid expenses and other assets
|
(5 | ) | (4 | ) | ||||
Accounts payable and other liabilities
|
(38 | ) | 6 | |||||
Net cash from operating activities
|
100 | 172 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment
|
(35 | ) | (47 | ) | ||||
Proceeds from sale of assets
|
10 | 1 | ||||||
Acquisition of business, net of cash acquired
|
— | (67 | ) | |||||
Net cash from investing activities
|
(25 | ) | (113 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from long-term borrowings
|
— | 3 | ||||||
Repayments on long-term borrowings
|
(116 | ) | (13 | ) | ||||
Proceeds from issuance of common stock
|
7 | 3 | ||||||
Payment of tax receivable agreement
|
(39 | ) | (32 | ) | ||||
Net cash from financing activities
|
(148 | ) | (39 | ) | ||||
Effect of exchange rate changes on cash
|
(3 | ) | — | |||||
Net change in cash
|
(76 | ) | 20 | |||||
Cash and cash equivalents at beginning of period
|
129 | 142 | ||||||
Cash and cash equivalents at end of period
|
$ | 53 | $ | 162 |
Quarterly Period Ended
|
||||||||
December 27, 2014
|
December 28, 2013
|
|||||||
Rigid Open Top
|
$ | — | $ | 1 | ||||
Rigid Closed Top
|
1 | — | ||||||
Engineered Materials
|
— | 3 | ||||||
Flexible Packaging
|
3 | 6 | ||||||
Consolidated
|
$ | 4 | $ | 10 |
Severance and termination benefits
|
Facilities exit costs and other
|
Non-cash
|
Total
|
|||||||||||||
Balance at September 27, 2014
|
$ | 5 | $ | 8 | $ | — | $ | 13 | ||||||||
Charges
|
1 | 1 | 2 | 4 | ||||||||||||
Non-cash asset impairment
|
— | — | (2 | ) | (2 | ) | ||||||||||
Cash payments
|
(3 | ) | (1 | ) | — | (4 | ) | |||||||||
Balance at December 27, 2014
|
$ | 3 | $ | 8 | $ | — | $ | 11 |
December 27, 2014
|
September 27, 2014
|
|||||||
Employee compensation, payroll and other taxes
|
$ | 86 | $ | 99 | ||||
Interest
|
55 | 44 | ||||||
Rebates
|
57 | 50 | ||||||
Tax receivable agreement obligation
|
60 | 39 | ||||||
Other
|
76 | 82 | ||||||
$ | 334 | $ | 314 |
December 27, 2014
|
September 27, 2014
|
|||||||
Lease retirement obligation
|
$ | 31 | $ | 31 | ||||
Sale-lease back deferred gain
|
29 | 30 | ||||||
Pension liability
|
44 | 45 | ||||||
Tax receivable agreement obligation
|
174 | 234 | ||||||
Other
|
24 | 16 | ||||||
$ | 302 | $ | 356 |
Maturity Date
|
December 27, 2014
|
September 27, 2014
|
|||||||
Term loan
|
February 2020
|
$ | 1,379 | $ | 1,383 | ||||
Term loan
|
January 2021
|
1,019 | 1,122 | ||||||
Revolving line of credit
|
June 2016
|
— | — | ||||||
9¾% Second Priority Senior Secured Notes
|
January 2021
|
800 | 800 | ||||||
5
½
% Second Priority Senior Secured Notes
|
May 2022
|
500 | 500 | ||||||
Capital leases and other
|
Various
|
114 | 113 | ||||||
3,812 | 3,918 | ||||||||
Less current portion of long-term debt
|
(56 | ) | (58 | ) | |||||
$ | 3,756 | $ | 3,860 |
Derivatives instruments
|
Balance Sheet Location
|
December 27, 2014
|
September 27, 2014
|
||||||
Interest rate swap
|
Other long-term liabilities
|
$ | 10 | $ | 3 |
As of December 27, 2014
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | ||||||||||
Goodwill
|
— | — | 1,657 | 1,657 | — | |||||||||||||||
Definite lived intangible assets
|
— | — | 559 | 559 | — | |||||||||||||||
Property, plant, and equipment
|
— | — | 1,331 | 1,331 | 2 | |||||||||||||||
Total
|
$ | — | $ | — | $ | 3,754 | $ | 3,754 | $ | 2 |
As of September 27, 2014
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | ||||||||||
Goodwill
|
— | — | 1,659 | 1,659 | — | |||||||||||||||
Definite lived intangible assets
|
— | — | 585 | 585 | — | |||||||||||||||
Property, plant, and equipment
|
— | — | 1,364 | 1,364 | 7 | |||||||||||||||
Total
|
$ | — | $ | — | $ | 3,815 | $ | 3,815 | $ | 7 |
Quarterly Period Ended
|
||||||||
December 27, 2014
|
December 28,
2013
|
|||||||
Income tax expense computed at statutory rate
|
$ | 6 | $ | 3 | ||||
Research and development credits
|
(3 | ) | — | |||||
Uncertain tax position
|
— | (1 | ) | |||||
Other
|
— | 1 | ||||||
Income tax expense
|
$ | 3 | $ | 3 |
Quarterly Period Ended
|
||||||||
December 27, 2014
|
December 28, 2013
|
|||||||
Net sales:
|
||||||||
Rigid Open Top
|
$ | 257 | $ | 261 | ||||
Rigid Closed Top
|
373 | 332 | ||||||
Engineered Materials
|
349 | 342 | ||||||
Flexible Packaging
|
241 | 205 | ||||||
Total net sales
|
$ | 1,220 | $ | 1,140 | ||||
Operating income (loss):
|
||||||||
Rigid Open Top
|
$ | 7 | $ | 13 | ||||
Rigid Closed Top
|
21 | 30 | ||||||
Engineered Materials
|
32 | 25 | ||||||
Flexible Packaging
|
8 | (5 | ) | |||||
Total operating income
|
$ | 68 | $ | 63 | ||||
Depreciation and amortization:
|
||||||||
Rigid Open Top
|
$ | 23 | $ | 23 | ||||
Rigid Closed Top
|
36 | 30 | ||||||
Engineered Materials
|
17 | 19 | ||||||
Flexible Packaging
|
15 | 13 | ||||||
Total depreciation and amortization
|
$ | 91 | $ | 85 |
December 27, 2014
|
September 27, 2014
|
|||||||
Total assets:
|
||||||||
Rigid Open Top
|
$ | 1,804 | $ | 1,808 | ||||
Rigid Closed Top
|
1,910 | 1,966 | ||||||
Engineered Materials
|
713 | 722 | ||||||
Flexible Packaging
|
749 | 772 | ||||||
Total assets
|
$ | 5,176 | $ | 5,268 | ||||
Goodwill:
|
||||||||
Rigid Open Top
|
$ | 681 | $ | 681 | ||||
Rigid Closed Top
|
826 | 827 | ||||||
Engineered Materials
|
70 | 71 | ||||||
Flexible Packaging
|
80 | 80 | ||||||
Total goodwill
|
$ | 1,657 | $ | 1,659 |
Quarterly Period Ended
|
||||||||
(in millions, except per share amounts)
|
December 27, 2014
|
December 28, 2013
|
||||||
Numerator
|
||||||||
Net income
|
$ | 13 | $ | 6 | ||||
Denominator
|
||||||||
Weighted average common shares outstanding - basic
|
118.2 | 115.9 | ||||||
Dilutive shares
|
4.7 | 4.6 | ||||||
Weighted average common and common equivalent shares outstanding - diluted
|
122.9 | 120.5 | ||||||
Per common share income
|
||||||||
Basic
|
$ | 0.11 | $ | 0.05 | ||||
Diluted
|
$ | 0.11 | $ | 0.05 |
Currency Translation
|
Defined Benefit Pension and Retiree Health Benefit Plans
|
Interest Rate Hedges
|
Accumulated Other Comprehensive Loss
|
|||||||||||||
Balance at September 27, 2014
|
$ | (36 | ) | $ | (15 | ) | $ | 8 | $ | (43 | ) | |||||
Other comprehensive loss
|
(14 | ) | — | (7 | ) | (21 | ) | |||||||||
Tax expense
|
— | — | 2 | 2 | ||||||||||||
Balance at December 27, 2014
|
$ | (50 | ) | $ | (15 | ) | $ | 3 | $ | (62 | ) |
Condensed Supplemental Consolidated Balance Sheet
|
||||||||||||||||||||||||
December 27, 2014
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
250 | 99 | 863 | 190 | — | 1,402 | ||||||||||||||||||
Intercompany receivable
|
— | 3,321 | — | 97 | (3,418 | ) | — | |||||||||||||||||
Property, plant, and equipment, net
|
— | 81 | 1,139 | 111 | — | 1,331 | ||||||||||||||||||
Other assets
|
76 | 1,370 | 2,207 | 118 | (1,328 | ) | 2,443 | |||||||||||||||||
Total assets
|
$ | 326 | $ | 4,871 | $ | 4,209 | $ | 516 | $ | (4,746 | ) | $ | 5,176 | |||||||||||
|
||||||||||||||||||||||||
Current liabilities
|
57 | 216 | 393 | 76 | — | 742 | ||||||||||||||||||
Intercompany payable
|
(282 | ) | — | 3,700 | — | (3,418 | ) | — | ||||||||||||||||
Other long-term liabilities
|
644 | 3,838 | 38 | 7 | — | 4,527 | ||||||||||||||||||
Non-controlling interest
|
13 | — | — | 13 | (13 | ) | 13 | |||||||||||||||||
Stockholders’ equity (deficit)
|
(106 | ) | 817 | 78 | 420 | (1,315 | ) | (106 | ) | |||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 326 | $ | 4,871 | $ | 4,209 | $ | 516 | $ | (4,746 | ) | $ | 5,176 |
September 27, 2014
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
166 | 171 | 901 | 194 | — | 1,432 | ||||||||||||||||||
Intercompany receivable
|
— | 3,343 | — | 87 | (3,430 | ) | — | |||||||||||||||||
Property, plant and equipment, net
|
— | 84 | 1,162 | 118 | — | 1,364 | ||||||||||||||||||
Other assets
|
69 | 1,357 | 2,227 | 125 | (1,306 | ) | 2,472 | |||||||||||||||||
Total assets
|
$ | 235 | $ | 4,955 | $ | 4,290 | $ | 524 | $ | (4,736 | ) | $ | 5,268 | |||||||||||
|
||||||||||||||||||||||||
Current liabilities
|
35 | 212 | 435 | 85 | — | 767 | ||||||||||||||||||
Intercompany payable
|
(319 | ) | — | 3,749 | — | (3,430 | ) | — | ||||||||||||||||
Other long-term liabilities
|
620 | 3,934 | 42 | 6 | — | 4,602 | ||||||||||||||||||
Non-controlling interest | 13 | — | — | 13 | (13) | 13 | ||||||||||||||||||
Stockholders’ equity (deficit)
|
(114 | ) | 809 | 64 | 420 | (1,293 | ) | (114 | ) | |||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 235 | $ | 4,955 | $ | 4,290 | $ | 524 | $ | (4,736 | ) | $ | 5,268 |
Condensed Supplemental Consolidated Statements of Operations
|
||||||||||||||||||||||||
Quarterly Period Ended December 27, 2014 | ||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 159 | $ | 948 | $ | 113 | $ | — | $ | 1,220 | ||||||||||||
Cost of goods sold
|
— | 147 | 809 | 81 | — | 1,037 | ||||||||||||||||||
Selling, general and administrative
|
— | 16 | 60 | 10 | — | 86 | ||||||||||||||||||
Amortization of intangibles
|
— | 2 | 21 | 2 | — | 25 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 4 | — | — | 4 | ||||||||||||||||||
Operating income (loss)
|
— | (6 | ) | 54 | 20 | — | 68 | |||||||||||||||||
Other income, net
|
— | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Interest expense, net
|
— | 7 | 41 | 5 | — | 53 | ||||||||||||||||||
Equity in net income of subsidiaries
|
(16 | ) | (28 | ) | — | — | 44 | — | ||||||||||||||||
Income (loss) before income taxes
|
16 | 16 | 13 | 15 | (44 | ) | 16 | |||||||||||||||||
Income tax expense (benefit)
|
3 | 2 | — | 1 | (3 | ) | 3 | |||||||||||||||||
Net income (loss)
|
$ | 13 | $ | 14 | $ | 13 | $ | 14 | $ | (41 | ) | $ | 13 | |||||||||||
Comprehensive income (loss)
|
$ | 13 | $ | 13 | $ | 9 | $ | — | $ | (41 | ) | $ | (6 | ) |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | (16 | ) | $ | 102 | $ | 14 | $ | — | $ | 100 | |||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (3 | ) | (30 | ) | (2 | ) | — | (35 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 10 | — | — | 10 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(7 | ) | 7 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 55 | — | — | (55 | ) | — | |||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | — | — | — | — | ||||||||||||||||||
Net cash from investing activities
|
(7 | ) | 59 | (20 | ) | (2 | ) | (55 | ) | (25 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from issuance of common stock
|
7 | — | — | — | — | 7 | ||||||||||||||||||
Payment of tax receivable agreement
|
(39 | ) | — | — | — | — | (39 | ) | ||||||||||||||||
Repayments on long-term borrowings
|
— | (115 | ) | — | (1 | ) | — | (116 | ) | |||||||||||||||
Changes in intercompany balances
|
39 | — | (91 | ) | (3 | ) | 55 | — | ||||||||||||||||
Net cash provided from financing activities
|
7 | (115 | ) | (91 | ) | (4 | ) | 55 | (148 | ) | ||||||||||||||
Effect of exchange rate on cash
|
— | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Net change in cash
|
— | (72 | ) | (9 | ) | 5 | — | (76 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 70 | 15 | 44 | — | 129 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | — | $ | (2 | ) | $ | 6 | $ | 49 | $ | — | $ | 53 |
Quarterly Period Ended December 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 146 | $ | 907 | $ | 87 | $ | — | $ | 1,140 | ||||||||||||
Cost of goods sold
|
— | 131 | 762 | 71 | — | 964 | ||||||||||||||||||
Selling, general and administrative
|
— | 19 | 51 | 7 | — | 77 | ||||||||||||||||||
Amortization of intangibles
|
— | 3 | 21 | 2 | — | 26 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 10 | — | — | 10 | ||||||||||||||||||
Operating income (loss)
|
— | (7 | ) | 63 | 7 | — | 63 | |||||||||||||||||
Debt extinguishment
|
— | — | — | — | — | — | ||||||||||||||||||
Other income, net
|
— | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Interest expense, net
|
13 | 6 | 44 | (33 | ) | 25 | 55 | |||||||||||||||||
Equity in net income of subsidiaries
|
(22 | ) | (58 | ) | — | — | 80 | — | ||||||||||||||||
Income (loss) before income taxes
|
9 | 46 | 19 | 40 | (105 | ) | 9 | |||||||||||||||||
Income tax expense (benefit)
|
3 | 16 | — | 1 | (17 | ) | 3 | |||||||||||||||||
Net income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 39 | $ | (88 | ) | $ | 6 | |||||||||||
Comprehensive income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 38 | $ | (88 | ) | $ | 5 |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | — | $ | 162 | $ | 10 | $ | — | $ | 172 | ||||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (2 | ) | (44 | ) | (1 | ) | — | (47 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 1 | — | — | 1 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(3 | ) | 3 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 30 | — | — | (30 | ) | — | |||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | (62 | ) | (5) | — | (67 | ) | ||||||||||||||||
Net cash from investing activities
|
(3 | ) | 31 | (105 | ) | (6 | ) | (30 | ) | (113 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term borrowings
|
— | — | — | 3 | — | 3 | ||||||||||||||||||
Proceeds from issuance of common stock
|
3 | — | — | — | — | 3 | ||||||||||||||||||
Payment of tax receivable agreement
|
(32 | ) | — | — | — | — | (32 | ) | ||||||||||||||||
Repayments on long-term borrowings
|
— | (13 | ) | — | — | — | (13 | ) | ||||||||||||||||
Changes in intercompany balances
|
32 | — | (57 | ) | (5 | ) | 30 | — | ||||||||||||||||
Net cash provided from financing activities
|
3 | (13 | ) | (57 | ) | (2 | ) | 30 | (39 | ) | ||||||||||||||
Effect of exchange rate on cash
|
— | — | — | — | — | — | ||||||||||||||||||
Net change in cash
|
— | 18 | — | 2 | — | 20 | ||||||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 116 | — | 26 | — | 142 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | — | $ | 134 | $ | — | $ | 28 | $ | — | $ | 162 |
Polyethylene Butene Film
|
Polypropylene
|
|||||||||||||||||||||||
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
|||||||||||||||||||
1st quarter
|
$ | .86 | $ | .82 | $ | .69 | $ | .92 | $ | .89 | $ | .76 | ||||||||||||
2nd quarter
|
— | .85 | .74 | — | .95 | .96 | ||||||||||||||||||
3rd quarter
|
— | .86 | .77 | — | .91 | .84 | ||||||||||||||||||
4th quarter
|
— | .87 | .79 | — | .92 | .89 |
Consolidated Overview
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$ | 1,220 | $ | 1,140 | $ | 80 | 7 | % | ||||||||
Operating income
|
$ | 68 | $ | 63 | $ | 5 | 8 | % | ||||||||
Operating income percentage of net sales
|
6 | % | 6 | % |
Rigid Open Top
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$ | 257 | $ | 261 | $ | (4 | ) | (2 | %) | |||||||
Operating income
|
$ | 7 | $ | 13 | $ | (6 | ) | (46 | %) | |||||||
Operating income percentage of net sales
|
3 | % | 5 | % |
Rigid Closed Top
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$ | 373 | $ | 332 | $ | 41 | 12 | % | ||||||||
Operating income
|
$ | 21 | $ | 30 | $ | (9 | ) | (30 | %) | |||||||
Operating income percentage of net sales
|
6 | % | 9 | % |
Engineered Materials
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$ | 349 | $ | 342 | $ | 7 | 2 | % | ||||||||
Operating income
|
$ | 32 | $ | 25 | $ | 7 | 28 | % | ||||||||
Operating income percentage of net sales
|
9 | % | 7 | % |
Flexible Packaging
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Net sales
|
$ | 241 | $ | 205 | $ | 36 | 18 | % | ||||||||
Operating income
|
$ | 8 | $ | (5 | ) | $ | 13 | 260 | % | |||||||
Operating income percentage of net sales
|
3 | % | (2 | %) |
Other income
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Other income, net
|
$ | (1 | ) | $ | (1 | ) | - | - |
Interest expense
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Interest expense, net
|
$ | 53 | $ | 55 | $ | (2 | ) | (4 | %) |
Income tax expense
|
||||||||||||||||
Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
|||||||||||||
Income tax expense
|
$ | 3 | $ | 3 | - | - |
December 27, 2014
|
||||||||
Four Quarters Ended
|
Quarterly Period Ended
|
|||||||
Adjusted EBITDA
|
$ | 828 | $ | 183 | ||||
Depreciation and amortization
|
(364 | ) | (91 | ) | ||||
Business optimization and other expense
(a)
|
(85 | ) | (19 | ) | ||||
Restructuring and impairment
|
(24 | ) | (4 | ) | ||||
Pro forma acquisitions
|
(14 | ) | — | |||||
Unrealized cost savings
|
(20 | ) | (1 | ) | ||||
Operating income
|
$ | 321 | $ | 68 | ||||
Cash flow from operating activities
|
$ | 458 | $ | 100 | ||||
Net additions to property, plant and equipment
|
(175 | ) | (25 | ) | ||||
Payments of tax receivable agreement
|
(39 | ) | (39 | ) | ||||
Adjusted free cash flow
|
$ | 244 | $ | 36 | ||||
Cash flow from investing activities
|
(334 | ) | (25 | ) | ||||
Cash flow from financing activities
|
(228 | ) | (148 | ) | ||||
(a)
Includes business optimization, integration expenses and non-cash charges
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal controls.
|
·
|
risks associated with our substantial indebtedness and debt service;
|
·
|
changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices on a timely basis;
|
·
|
performance of our business and future operating results;
|
·
|
risks related to our acquisition strategy and integration of acquired businesses;
|
·
|
reliance on unpatented know-how and trade secrets;
|
·
|
increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations;
|
·
|
risks related to disruptions in the overall economy and the financial markets that may adversely impact our business;
|
·
|
catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions;
|
·
|
risks of competition, including foreign competition, in our existing and future markets;
|
·
|
general business and economic conditions, particularly an economic downturn;
|
·
|
risks that our restructuring program may entail greater implementation costs or result in lower cost savings than anticipated;
|
·
|
the ability of our insurance to cover fully our potential exposures; and
|
·
|
the other factors discussed in our most recent Form 10-K in the section titled “Risk Factors.”
|
10.1 | Fourth Amended and Restated Stockholders Agreement, by and among Berry Plastics Group, Inc. and those stockholders |
listed on Schedule A thereto, dated as of January 15, 2015 | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer |
32.1 | Section 1350 Certification of the Chief Executive Officer |
32.2 | Section 1350 Certification of the Chief Financial Officer |
101. | Interactive Data Files |
Berry Plastics Group, Inc. | |||
|
By:
|
/s/ Mark W. Miles | |
January 30, 2015 | Mark W. Miles | ||
Chief Financial Officer | |||
(i)
|
If to the Corporation, to:
|
|
Berry Plastics Group, Inc.
|
|
101 Oakley Street
|
|
Evansville, Indiana 47710
|
|
Attention: General Counsel
|
|
Telecopier: (812) 434-9472
|
|
with copies to:
|
|
Bryan Cave LLP
|
|
1201 West Peachtree Street NW
|
|
14
th
Floor
|
|
Atlanta, GA 30309
|
|
Attn: Eliot W. Robinson
|
|
Fax: (404) 572-6999
|
BERRY PLASTICS GROUP, INC. | |||
|
By:
|
/s/ Jonathan D. Rich | |
Name: | Jonathan D. Rich | ||
Title: | Chairman & CEO | ||
|
1.
|
Acknowledgement
. Transferee acknowledges that Transferee is acquiring certain shares of Common Stock of the Corporation, subject to the terms and conditions of Stockholders Agreement, among the Corporation and the Stockholders party thereto.
|
|
2.
|
Agreement
. Transferee (i) agrees that the shares of Common Stock acquired by Transferee, and certain other shares of Common Stock that may be acquired by Transferee in the future, shall be bound by and subject to the terms of the Stockholders Agreement, pursuant to the terms thereof, and (ii) hereby adopts the Stockholders Agreement with the same force and effect as if he, she or it were originally a party thereto.
|
|
3.
|
Notice
. Any notice required as permitted by the Stockholders Agreement shall be given to Transferee at the address listed beside Transferee’s signature below.
|
|
4.
|
Joinder
. The spouse of the undersigned Transferee, if applicable, executes this Adoption to acknowledge its fairness and that it is in such spouse’s best interest, and to bind such spouse’s community interest, if any, in the shares of Common Stock and other securities referred to above and in the Stockholders Agreement, to the terms of the Stockholders Agreement.
|
Jimmy Alexander
|
Wendolyn Fox
|
Brett Bauer
|
Joseph Franckowiak
|
Randall Becker
|
Greg Gard
|
Curtis Begle
|
Debra Garrison
|
Harold Engh III
|
Jeffrey Godsey
|
Scott Farmer
|
Jason Greene
|
Michelle Forsell
|
William Gross
|
Mark Freeman
|
Ronda Hale
|
Lawrence Goldstein
|
Bill Harness
|
Rodgers Greenawalt
|
Elisabeth Heusinkveld
|
Randall Hobson
|
Mike Hill
|
Dave Jochem
|
Michael Jacklen
|
Jochem Family Trust No. 1
|
Brian Jacobi
|
Dave Jochem
|
Robin John
|
Kurt Klodnick
|
Thomas Johnson
|
James Kratochvil
|
Gregory Wilson Jones
|
Todd Mathis
|
Paul Kiely
|
John Matuscak
|
Robert Kiely
|
Mark Miles
|
Richard Kreisl
|
William Norman
|
Stefan Krieken
|
Joel Plaas
|
James Kveglis
|
Jonathan Rich
|
Gerard Lamarre
|
Jonathan Rich
|
John Landgrebe
|
Jonathan D Rich - GRAT - BP Rich
|
Tim Leasure
|
Thomas Salmon
|
Mary Jo Lilly
|
Edward Stratton
|
Kevin Lorang
|
Kenneth Swanson
|
James Macare
|
Jeffrey Thompson
|
Robert Maltarich
|
John Ulowetz
|
Abboud Mamish
|
Glenn Unfried
|
Jeffrey Mann
|
Robert Weilminster
|
Henry Mariana
|
Donald Abney
|
Joanna Marshall
|
Gary Abraham
|
Joanna Marshall IRA Charles Schwab & Co., Inc.
|
Eric Babillis
|
Custodian Marshall
|
John Baker
|
Janice Meissbach
|
Bradley Bastion
|
Jeff Minnette
|
Bret Baum
|
Jason Paladino
|
Jeff Bennett
|
John Mark Patrick
|
Michael Bly
|
Kevin Pennington
|
Tom Boyle
|
Edmond Phillips
|
Keith Brechtelsbauer
|
Terri Pitcher
|
Joseph Bruchman
|
Tom Radle
|
Richard Carroll
|
Christopher Reffett
|
Frank Cassidy
|
Dale Ridenour
|
Michael Clark
|
Donovan Russell
|
Frits Doddema
|
Gerald Ruud, II
|
Ryan Ehlert
|
Scott Sanner
|
Jennye Scott
|
Donald Bender
|
Shelton Scott
|
David Berkman
|
Steven Shuder
|
Stephane Binette
|
Benjamin Stilwell
|
Janet Bittner
|
Rolland Strasser
|
Mark Bixler
|
Thomas Sweeney, Jr.
|
Daniel Bloom
|
Garry Teeguarden
|
Elmer Boeke
|
Sam Thomas
|
Ingrid Bogaerts
|
Jim Till
|
Mike Bogar
|
Timothy White
|
Joe Boris
|
John Yellig
|
Edward Boswell
|
Brian Allen
|
Robert Bridewell
|
David Anderson
|
Rodney Brown
|
Darin Boots
|
Shawn Burns
|
Bobby Couick
|
Krystal Butell
|
Thomas Crosson
|
James Campbell
|
Jennifer Dartt
|
Darlene Carr
|
Lisa Davis
|
Adam Casta
|
Joseph Dewig
|
Humberto Castilla
|
Gabrielle Ditsch
|
Ana Cervantes
|
Kathie Ellsworth
|
Mike Chartrand
|
Dale Finley
|
Michael Clark
|
William Freyer
|
Daniel Collins
|
Todd Gerot
|
Fred Cook, Jr.
|
Marshall Harris
|
Steve Cooper
|
William Humphries
|
Julie Craft
|
Kenneth Jochem
|
Ben Cross
|
Jeffrey Kohl
|
Nick Damico
|
Mark Kramer
|
Bob Dannen
|
Michael Lawrence
|
Thomas Dawe
|
Glenn LeBlanc
|
Mark Dawson
|
Ray McAlister
|
Edward Dehart
|
Kenneth Meissbach
|
Elizabeth DeHaven
|
Suzanne Mills
|
Andrew Deutschman
|
Thomas Pate
|
John Dintaman
|
Michael Putnam
|
Chris Dorsogna
|
Roseann Rohe
|
George Downing
|
John Sabey
|
William Duane
|
Robert Smith
|
Rex Eaton
|
Robert Stead, Jr.
|
Michael Eickhoff
|
Fredy Steng
|
Daniel Ensley
|
William Truelove
|
George Eoannou
|
Michael White
|
Patrick Fairchild
|
Paul Wolak
|
David Faubion
|
James Abate
|
Lori Faubion
|
Roy Ackerman
|
Nicholas Feagley
|
Greg Albertson
|
Mike Figiel
|
Anthony Allegro
|
Craig Finley
|
Jon Allie
|
Scott Fisher
|
Alex Arce
|
William Fitzwater
|
Patricia Argent
|
Eric Folz
|
Terrance Arth
|
David Foster
|
Garry Baker
|
Dawn Foster
|
Bo Becker
|
Ross Freese
|
Kenneth Bell
|
Brian Fultz
|
Gregory Bender
|
John Furlano
|
Francisco Ramirez
|
Michael West
|
Ian Rayner
|
Christopher White
|
Jacqueline Redmon
|
Kim Wilburn
|
Aaron Rees
|
Freddy Williams
|
Mary Reese
|
Mitchell Williams
|
Chad Rice
|
Todd Wilmont
|
Joe Rieks
|
Burnice Wilson
|
Brian Rose
|
Joey Wilson
|
Alan Ross
|
Kevin L. Wilson
|
Lisa Roth
|
Michelle Wilson
|
Bruno Rudolf
|
Mitzie Wilson
|
Rob Ruppe
|
Phil Wilson
|
Thomas Rzendzian
|
Robert Wolf
|
Randall Salley
|
Diana Wood
|
Christopher Sampson
|
Miriam Wright
|
Scott Sanner
|
Paul Yeager
|
Vince Santoro
|
Gerry Yontz
|
Michael Schaefer
|
Daniel Zakashefski
|
Adam Schiff
|
Richard Zierer, Jr.
|
Tammy Schmitt
|
Mike Allen
|
John Schwetz
|
Jimmy Austria
|
Randy Selvage
|
Bradley Begle
|
Ketan Shah
|
Jim Belbas
|
William Shankland
|
Susan Bellard-Pickens
|
Eric Sherpy
|
Kirk Birchler
|
Ed Smith
|
Gary Britigan
|
Jeffrey Smith
|
Michelle Brown
|
Rick Smith
|
Terrance Burns
|
Ann Southwell
|
Coy Campbell
|
Scott Spaeth
|
Jackie Cargill
|
Kelly Spurrier
|
Patricia Cauley
|
John Staats
|
Carol Chomas
|
Phil Stolz
|
Sandy Cleary
|
Kenneth Sweet
|
Bill Custance
|
John Tauber
|
Amy Davis
|
Chris Tedford
|
Bradley Ehlers
|
Michael Terracciano
|
Debra Eoannou
|
John Thomas
|
Sheila Falco
|
Dirk Totte
|
Scott Franke
|
Armando Tovar
|
Stephen Fritz
|
Diane Tungate
|
Michael Fuller
|
Mazhar Uddin
|
Rod Geiser
|
Terry Vankoughnet
|
Leonard Gomez
|
Rebecca Varathungarajan
|
George Grinter
|
John Vassallo
|
Christopher Gunn
|
Rod Vincent
|
Brady Gutekunst
|
Rob Voegel
|
Sharon Hart
|
David Wagoner
|
Shay Helfrich
|
Christopher Walker
|
Mark Henderson
|
Craig Ward
|
Amanda Holder
|
Jerome Wargel
|
Jon Jackson
|
Vic Warren
|
Hillary Johnson
|
Frank Watson
|
Jana Johnson
|
James Watson
|
Neil Kassenbrock
|
Xiaokang Wei
|
Steven Kincade
|
John Weibert
|
Michael Kubera
|
Pamela Lagerstrom
|
Jacquiline Barber
|
Chris Lemberg
|
Judy Blanchard
|
Cheryl Litsey
|
Randy Bowlds
|
Maria Madda
|
Karen Boyer
|
William Manning
|
Tony Burke
|
Tarun Manroa
|
Matt Chase
|
Mandy McCain
|
Grant Cheney
|
Kelly McKamey
|
Svetlana Contrada
|
Stephen McNulty
|
Ryan Dewig
|
David Meguiar
|
Phil Driskill
|
Julie Merriman
|
Andy Drotleff
|
Adam Meyer
|
John Euler
|
Bruce Miles
|
Cheryl Fireline
|
Jan Miller
|
Jordan French
|
James Mlsna
|
Karen Gail
|
Jeffrey Moore
|
Luc Geukens
|
Lee Mosby
|
Bryan Gillespie
|
Paul Murphy
|
Jerry Gordon
|
David Okon
|
Carl Graf
|
Sheeree Oney
|
Jill Greene
|
Tom Paulett
|
Bill Hames
|
Gary Pelletier
|
Christine Hanson
|
Richard Perkowski
|
Marty Hoenigmann
|
Christopher Phillips
|
Wendy Hornich
|
Michelle Phillips
|
Ron Hugo
|
Ed Pietraniec
|
Brian Johnson
|
Robert Pressley
|
Martha Johnson
|
Juan Ruiz
|
Cory Keich
|
Beth Salerno
|
Constance Kimball
|
John Scheller
|
Mike Kinnan
|
Mark Schmitt
|
Albert Koch
|
Michele Schmitt
|
Raymond Lewis
|
Don Scott
|
Chuck Longino
|
Mark Shafer
|
Michael Maldonado
|
Gary Shapker
|
Chris Marposon
|
Peter Sirois
|
Marcia Navarro
|
Scott Sitzman
|
Cindy Newman
|
Matthew Skarbek
|
Wes Porter
|
James Smith
|
Randall Rieger
|
Matthew Smythe
|
Greg Roth
|
Deborah Strickland
|
Hugo Salinas
|
Jessie Talley
|
Don Scates
|
Robin Thomas
|
Eva Schmitz
|
Roy Thorpe
|
John M. Shearin
|
Bill Ventresca
|
Allen Sliwa
|
Todd Wadle
|
Tracy Soderling
|
Tina Wagnon
|
Ty Staples
|
Jon Wicker
|
Joshua Steele
|
Jayson Williams
|
Dustin Stilwell
|
Kevin Winkleman
|
Dexter Sullivan
|
Vickie Wittmer
|
Fred Thomas
|
Bradley Worth
|
Christopher Thompson
|
Lisa Yorgason
|
Carly Trimpe
|
Matt Adamore
|
Keith Tungate
|
Larry Baker
|
Rajan Varadarajan
|
Paul Watson
|
Steven Bonti
|
Alan Welch
|
Ronald Casey, Sr.
|
Si Nam Won
|
Tony Cella
|
Donald Young
|
David Corey
|
GS Mezzanine Partners 2006 Institutional US, Ltd
|
James Farley, Jr.
|
GS Mezzanine Partners 2006 Offshore US, Ltd.
|
Mark Fermenick
|
GS Mezzanine Partners 2006 Onshore US, Ltd.
|
Timothy Flynn
|
Evan Bayh
|
Mark Fricke
|
Anthony Civale
|
Kenneth Fritts
|
Joshua Harris
|
Dennis Giese
|
Robert Seminara
|
Stephen Heyer
|
James Hill
|
|
Robert Dubner
|
Kris Hockstedler
|
Marv Schlanger
|
Armando Huicochea
|
Timothy Kurpius
|
Aron Jahr
|
R. Brent Beeler 2012-8 Grantor Retained Annuity
|
Deborah Johnson
|
Trust Beeler
|
Curtis Jordan
|
Douglas Bell
|
Butch Lee
|
Ira Boots
|
Daniel Lenhart
|
Ira Boots Family Trust No. 1, Ira G. Boots
|
Kyle Lorentzen
|
Trustee Boots
|
Jon Lyons
|
The Fredrick A. Heseman Family Trust 2009
|
Michael Lyons
|
Fredrick Heseman
|
Marshall McCombs
|
Marcia Jochem
|
Terry Moege
|
Howard Weatherwax
|
Bryan Norman
|
Martin Branham
|
Lisa Richey
|
Stephen Ellis
|
Randall Rieger
|
James Handberg
|
Angela Rosenberry
|
Keith Lawrence
|
Jerry Serra
|
Terry Sullivan
|
Ronald Sheldon
|
Terry Wix
|
James Whitehead
|
Charles Allen
|
Elizabeth Wilhelmson
|
Timothy Beaudry
|
Alan Wyn
|
|
|
/s/ Jonathan D. Rich | |
Date: January 30, 2015 | Jonathan D. Rich | ||
Chairman and Chief Executive Officer | |||
|
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Date: January 30, 2015 | Chief Financial Officer | ||
|
|
/s/ Jonathan D. Rich | |
Jonathan D. Rich | |||
Chairman and Chief Executive Officer | |||
Date: January 30, 2015 |
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Cheif Financial Officer | |||
Date: January 30, 2015 |