L i b b e y I n c. Q E a r n i n g s C a l l J u l y 3 1,

Transcription

1 L i b b e y I n c. Q E a r n i n g s C a l l J u l y 3 1,

2 Management on Today s Call Bill Foley Chairman and Chief Executive Officer Jim Burmeister Senior Vice President, Chief Financial Officer Joe Huhn Vice President, Financial Planning & Analysis and Investor Relations 2

3 Cautionary Statement Material presented on today s call includes forward-looking statements about Libbey Inc. These statements are subject to risks and uncertainties, including market conditions, competitive pressures, the value of the U.S. dollar and potential significant cost increases. Please refer to the Company s Form 10-K for fiscal year-end December 31, 2017, filed on March 1, 2018, for further information. This presentation includes financial information of which the Company s independent auditors have not completed their audit. Although the Company believes that the assumptions upon which the financial information and its forward looking statements are based are reasonable, it can give no assurances that these assumptions will prove to be accurate. This presentation and today s prepared remarks contain non-gaap financial measures. We believe that the Adjusted Earnings Before Interest Taxes Depreciation and Amortization, or Adjusted EBITDA; Adjusted EBITDA margin; Trade Working Capital; Debt, net of cash to Adjusted EBITDA; Adjusted Selling, General and Administrative expense; and references to sales in constant currency are meaningful measures for investors to compare our results from period to period. Reconciliations of the non-gaap to GAAP measures may be found within the earnings press release and the supplemental financials. 3

4 2018 Second-quarter Highlights ($ in millions) Net Sales Y-O-Y Change Y-O-Y Constant Currency Adjusted EBITDA 2 Y-O-Y Change Second Quarter 2018 $ % 7.0% $ % New products drove approximately $13.3MM of sales, or 6.2% of net sales E-commerce platform sales represented approximately 12.6% of total U.S. & Canada retail sales U.S. & Canada foodservice continues to outperform the market in 2018; YTD volume and sales growth versus declining traffic of (2.4%) 1 in the first half of 2018 Latin America and EMEA improved profitability for fourth consecutive quarter (1) - Source: Black Box (2) - See our second quarter 2018 press release filed on form 8-K on July 31, 2018, for reconciliations of Adjusted EBITDA to the most directly comparable U.S. GAAP measure. 4

5 Foodservice Introduced 250+ Products at NRA Introductions included dinnerware collections, premium flatware, elegant and versatile serveware and a new take on classic glassware Featured insights-driven solutions that add a dramatically different look to the tabletop 5

6 Glassware to Support Premium Beverage Trend Master s Reserve line extensions focus on presentation of premium cocktails and craft beer to grow foodservice end-user profitability Libbey, Spiegelau & Nachtmann expand core product offerings with new vintage designs for premium cocktails Libbey s Master s Reserve Contempo Collection Recognized by FSR Magazine 6

7 Libbey Introduced its Finest Flatware Yet The Master's Gauge 18/10 collection sets a new standard of style and substance. The collection combines modern beauty and durability with an impressive selection of finishes, textures and unique profiles. 7

8 Libbey Showcased its Worry-free Serveware Introduced melamine, premium plastic and aluminum tableware additions Products that provide an elevated dining experience to patios, rooftops and any other settings 8

9 Second-quarter Progress in E-commerce 60 products launched online in Q2; another 68 expected in % of U.S. & Canada retail sales Opened our 3 rd Prime Certified 3PL in Millington, Tennessee Accelerating new products to market and driving additional brick-and-mortar placements 9

10 Key Financial Data Second-quarter 18 & 17 Unaudited Second Quarter Year-to-Date $ in millions, except per share data '18 '17 VPY '18 '17 VPY Net sales $ $ $ 16.0 $ $ $ 24.9 Gross profit $ 46.5 $ 41.4 $ 5.1 $ 80.2 $ 72.6 $ 7.6 Gross profit margin 21.8% 21.0% 0.8% 20.3% 19.6% 0.7% Selling, general & administrative expenses $ 33.5 $ 34.1 $ (0.6) $ 65.1 $ 67.4 $ (2.3) Net income (loss) $ 4.0 $ (0.8) $ 4.8 $ 1.0 $ (7.4) $ 8.4 Net income (loss) margin 1.9% (0.4%) 2.3% 0.3% (2.0%) 2.3% Diluted EPS $ 0.18 $ (0.04) $ 0.22 $ 0.05 $ (0.34) $ 0.39 Adjusted EBITDA (1)(2) (non-gaap) $ 26.8 $ 20.2 $ 6.6 $ 38.7 $ 26.4 $ 12.3 Adjusted EBITDA margin (1)(2) (non-gaap) 12.5% 10.2% 2.3% 9.8% 7.1% 2.7% Unaudited $ in millions, except ratio June 30, 2018 December 31, 2017 June 30, 2017 Trade Working Capital (1)(2) (non-gaap) $ $ $ Debt, net of cash to Adjusted EBITDA ratio (1)(2) (non-gaap) 4.7 x 5.1 x 5.0 x (1) See the Appendix for definitions of non-gaap measures. (2) See our second quarter 2018 press release filed on form 8-K on July 31, 2018, for reconciliations of Adjusted EBITDA, Adjusted EBITDA margin, Trade Working Capital and Debt, net of cash to Adjusted EBITDA ratio to the most directly comparable U.S. GAAP measure. 10

11 Q Net Sales of $213.5 vs. $197.5 in Q $ in millions $130 U.S. & Canada $3.7 $128.5 $45 Latin America $125 $121.9 $2.0 $0.9 $40 $36.5 $0.6 ($0.0) $3.2 $40.3 $120 $35 $115 Q2 '17 Net Sales Retail Foodservice B2B Q2 '18 Net Sales $30 Q2 '17 Net Sales Retail Foodservice B2B Q2 '18 Net Sales $45 $40 $35 $31.1 $2.9 EMEA $1.5 $2.7 $38.2 $30 $20 Other $30 $25 $10 $8.1 ($1.5) $6.6 $20 Q2 '17 Net Sales Retail Foodservice B2B Q2 '18 Net Sales $0 Q2 '17 Net Sales Sales Decline Q2 '18 Net Sales 11

12 YTD 2018 Net Sales of $395.4 vs. $370.5 in YTD 2017 $ in millions $240 $235 $231.2 $230 $0.6 U.S. & Canada $1.5 $3.1 $236.4 $80 $75 $70 $65 $67.2 $2.9 Latin America $0.6 $3.9 $74.6 $225 Q2 '17 YTD Net Sales Retail Foodservice B2B Q2 '18 YTD Net Sales $60 Q2 '17 YTD Net Sales Retail Foodservice B2B Q2 '18 YTD Net Sales $75 $70 $65 $60 $55 $56.4 $5.4 EMEA $3.2 $5.4 $70.4 $30 $25 $20 $15 $15.7 Other ($1.7) $14.0 $50 Q2 '17 YTD Net Sales Retail Foodservice B2B Q2 '18 YTD Net Sales $10 Q2 '17 YTD Net Sales Sales Decline Q2 '18 YTD Net Sales 12

13 Adjusted EBITDA (1) Walk 45.0 $ in millions Q2'18 QTD Adjusted EBITDA vs. Prior Year $MM $11.6 $2.9 ($6.3) ($1.2) ($0.4) $ $20.2 Downtime: ($4.6)MM 15.0 Prior Year Impact of Sales/ FCM Currency Manufacturing Activity Benefits Other Adjusted EBITDA $42.0 $37.0 $10.6 Q2 '18 YTD Adjusted EBITDA vs. Prior Year $MM $5.3 ($5.9) ($0.9) $3.2 $38.7 $32.0 $27.0 $26.4 Downtime: ($2.5)MM Reduced E-commerce Spend $2.8MM $22.0 Prior Year Impact of Sales/ FCM Currency Manufacturing Activity Benefits Other Adjusted EBITDA (1) - See our second quarter 2018 press release filed on form 8-K on July 31, 2018, for a reconciliation of Adjusted EBITDA to net income (loss). 13

14 Maintaining Previous 2018 Sales and Adjusted EBITDA Outlook; Revising SG&A Anticipated Full-year Adjusted EBITDA (1) margins of 10%-11% Full-year net sales expected to increase low-single digits Full-year downtime due to furnace rebuilds similar to prior year SG&A estimated to be between 16.0% % of net sales Capital expenditures approximately $50-$55 million (1) - See our second quarter 2018 press release filed on form 8-K on July 31, 2018, for a reconciliation of Adjusted EBITDA to net income (loss). 14

15 Q&A 15

16 Appendix of Non-GAAP Definitions Adjusted EBITDA and Adjusted EBITDA Margin U.S. GAAP net income (loss) plus interest expense, provision for income taxes, depreciation and amortization, and special items, when applicable, that Libbey believes are not reflective of our core operating performance Trade Working Capital Net accounts receivable plus net inventories less accounts payable. Debt, Net of Cash to Adjusted EBITDA Ratio Gross debt before unamortized discount and finance fees, less cash and cash equivalents, divided by last twelve months Adjusted EBITDA (defined above). Constant Currency Constant currency references regarding net sales reflect a simple mathematical translation of local currency results using the comparable prior period s currency conversion rate. 16

17 Additional Information NYSE MKT: LBY Alpha IR Group Chris Hodges & Sam Gibbons visit our website: 17