Fourth-quarter Diluted EPS Increases to $0.76 from $0.74
TOLEDO, Ohio, Jan. 31 /PRNewswire/ -- Citing the continued benefits of its
capacity realignment efforts, lower administrative expenses, higher equity
earnings and improved sales mix, Libbey Inc. (NYSE: LBY) announced that
diluted earnings per share for the fourth quarter ended December 31, 2000,
were 76 cents compared with 74 cents in the year-ago quarter. For the year,
the company reported sales of $441.8 million and diluted earnings per share of
$3.01 compared with sales of $460.6 million and diluted earnings per share of
$2.64 for 1999.
Diluted Earnings Per Share $.76 in Fourth Quarter
For the quarter-ended December 31, 2000, sales were $123.7 million
compared to $140.4 million in the year-ago quarter. In the year-ago quarter,
both glassware and dinnerware sales were positively impacted by sales of
products associated with the millennium, which totaled approximately
$9 million. In addition, sales were impacted by a slowdown in retail sales
late in the fourth quarter and by the company's decision to exit certain low
margin retail business.
The company recorded income from operations of $20.7 million during the
quarter. This compares with income from operations of $20.8 million in the
year-ago period. Excluding the effect of a $1.2 million credit to the
capacity realignment reserve in the year-ago quarter, the $20.7 million
represented a 5.6 percent increase over the $19.6 million adjusted income from
operations in the fourth quarter of 1999. Lower selling, general and
administrative expenses only partially offset the impact of lower sales.
In addition, expense reductions and other benefits in manufacturing,
distribution and other areas helped offset substantial increases in costs for
natural gas.
The company recorded earnings before interest and income taxes (EBIT) of
$21.3 million as compared with $21.8 million in the year-ago quarter, or
$20.5 million excluding the $1.2 million credit to the capacity realignment
reserve. Equity earnings increased to $1.4 million, compared with
$1.1 million in the year-ago quarter, and increased primarily as a result of
higher profits at Vitrocrisa, the company's joint venture in Mexico.
For the quarter-ended December 31, 2000, the company recorded net income
of $11.8 million, or 76 cents diluted earnings per share compared with a net
income of $11.9 million, or 74 cents diluted earnings per share, in the
year-ago period. Excluding the effect of the credit to the capacity
realignment charge, net income would have been $11.1 million and diluted
earnings per share would have totaled 70 cents in 1999. Diluted shares
outstanding declined to 15.5 million from 16.0 million in the year-ago period
due to the company's share repurchase program. During the quarter the company
repurchased 71,600 shares for approximately $2.0 million. As of December 31,
2000, the company has authorization to purchase up to an additional 977,600
shares.
Record Net Income in 2000, Earnings Per Share up 14 Percent
For the year-ended December 31, 2000, sales were $441.8 million compared
to $460.6 million in 1999. Income from operations increased 4.3 percent to
$81.6 million from $78.2 million last year. The higher operating income was
the result of improved sales mix, improved utilization of the company's
glassware plants and lower administrative expenses. EBIT increased to
$85.4 million from $81.2 million in 1999. The increase was attributable to
higher operating income and higher equity earnings, resulting from higher
operating profits at the company's joint venture in Mexico. Net income was an
all time record $46.9 million, or $3.01 per share on a diluted basis, compared
with $43.4 million, or $2.64 per share on a diluted basis in the
year-ago-period.
Income from operations as a percent of sales was a record setting
18.5 percent compared with 17.0 percent in 1999. EBIT as a percent of sales
was 19.3 percent in 2000, compared with 17.6 percent in the year-ago period.
Net income as a percent of sales was 10.6 percent, the highest level in
history, compared with 9.4 percent in the year-ago period.
Working Capital Management Remains a Focus
Compared to the year-ago-period, inventories increased $14.6 million.
However, with scheduled repair activity and the expectation of increased
sales, the company anticipates inventory reductions for 2001. Reductions in
accounts receivable of $10.6 million and higher accounts payable helped offset
the majority of the inventory increase.
Results and Outlook
Discussing the company's current results and outlook, John F. Meier,
chairman and chief executive officer, said, "We are most pleased with our
record setting 2000 results. The millennium-related sales and low margin
businesses we exited generated over $10 million in sales in 1999's fourth
quarter, and over $17 million in sales in the second half of 1999. In spite
of this tough sales comparison and higher natural gas costs, we were able to
deliver 14 percent growth in diluted earnings per share. We expect earnings
for the first quarter of the year to be roughly equal to the first quarter of
2000, as a result of higher costs for natural gas and electricity. For the
full year, our goal is to grow sales by six to seven percent and deliver
$52 million in net income in 2001, which would represent continued strong
growth and another record performance. While we will be challenged to grow in
the face of increasing energy costs and a slowing economy, with exciting new
products, continued focus on cost management and with the commitment of all
Libbey associates, our goal is to continue to deliver sustained earnings
growth."
Webcast Information
Libbey will hold a conference call for investors on Wednesday, January 31,
2001 at 11 a.m. Eastern Standard Time. The conference call will be simulcast
live on the Internet, accessible on both http://www.libbey.com and
http://www.streetfusion.com . To listen to the call, please go to the website at
least 15 minutes early to register, download and install any necessary
software. A replay will also be available for 7 days after the conclusion of
the call.
The above information includes "forward-looking" statements as defined in
the Private Securities Litigation Reform Act of 1995. Such statements only
reflect the company's best assessment at this time, and are indicated by words
or phrases such as "goal," "expects," "believes," "will," "estimates,"
"anticipates," or similar phrases.
Investors are cautioned that forward-looking statements involve risks and
uncertainty, that actual results may differ materially from such statements,
and that investors should not place undue reliance on such statements.
Important factors potentially affecting performance include devaluations
and other major currency fluctuations relative to the U.S. dollar that could
reduce the cost-competitiveness of the company's products compared to foreign
competition; the effect of high inflation in Mexico and exchange rate changes
to the value of the Mexican peso and the earnings and cash flow of the
company's joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the
inability to achieve savings and profit improvements at targeted levels in the
company's glassware sales from its production realignment efforts and
re-engineering programs, or within the intended time periods; inability to
achieve targeted manufacturing efficiencies at Syracuse China and cost
synergies between World Tableware and the company's other operations;
significant increases in interest rates that increase the company's borrowing
costs and per unit increases in the costs for natural gas, electricity,
corrugated packaging, and other purchased materials; protracted work stoppages
related to collective bargaining agreements; increased competition from
foreign suppliers endeavoring to sell glass tableware in the United States:
major slowdowns in the retail, travel or entertainment industries in the
United States or Canada; whether the company completes any significant
acquisition, and whether such acquisitions can operate profitably.
Libbey Inc.:
-- is the largest producer of glass tableware in North America;
-- is a leading producer of tabletop products for the foodservice
industry;
-- exports to more than 100 countries; and,
-- provides technical assistance to glass tableware manufacturers around
the world.
Based in Toledo, Ohio, the company operates glass tableware manufacturing
plants in California, Louisiana, and Ohio. In addition, Libbey is a joint
venture partner in the largest glass tableware company in Mexico. Through its
Syracuse China subsidiary, the company designs, manufactures and distributes
an extensive line of high-quality ceramic dinnerware, principally for
foodservice establishments in the United States. Through its World Tableware
subsidiary, the company imports and sells a full-line of metal flatware and
holloware and an assortment of ceramic dinnerware and other tabletop items,
principally for foodservice establishments in the United States. In 2000, its
net sales totaled $441.8 million.
LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per-share data)
THREE MONTHS ENDED
Percent
December 31, December 31, Change
2000 1999
Net sales $123,685 $140,372 -11.9%
Freight billed to customers 704 1,049
Royalties and net technical
assistance 1,041 353
Total revenues 125,430 141,774 -11.5%
Cost of sales 88,723 103,836 -14.6%
Selling, general and administrative
expenses 16,019 18,338 -12.6%
Capacity realignment charge (1,236)
Income from operations 20,688 20,836 -0.7%
Equity earnings 1,435 1,107
Other expense--net (872) (185)
Earnings before interest and
income taxes 21,251 21,758 -2.3%
Interest expense--net (2,981) (3,114)
Income before income taxes 18,270 18,644 -2.0%
Provision for income taxes 6,442 6,726
Net income $11,828 $11,918 -0.8%
Net income per share:
Basic $0.78 $0.76
Diluted $0.76 $0.74
Weighted average shares:
Outstanding 15,229 15,700
Diluted 15,520 15,998
TWELVE MONTHS ENDED
Percent
December 31, December 31, Change
2000 1999
Net sales $441,828 $460,592 -4.1%
Freight billed to customers 2,274 2,609
Royalties and net technical
assistance 4,684 4,397
Total revenues 448,786 467,598 -4.0%
Cost of sales 306,003 324,242 -5.6%
Selling, general and
administrative expenses 61,185 64,131 -4.6%
Capacity realignment charge 991
Income from operations 81,598 78,234 4.3%
Equity earnings 4,769 2,915
Other income (expense)--net (919) 13
Earnings before interest and
income taxes 85,448 81,162 5.3%
Interest expense--net (12,216) (12,501)
Income before income taxes 73,232 68,661 6.7%
Provision for income taxes 26,366 25,233
Net income $46,866 $43,428 7.9%
Net income per share:
Basic $3.07 $2.69
Diluted $3.01 $2.64
Weighted average shares:
Outstanding 15,254 16,151
Diluted 15,547 16,477
LIBBEY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, 2000 December 31, 1999
ASSETS
Cash $1,282 $3,918
Accounts receivable 51,739 62,329
Inventories 104,506 89,889
Other current assets 7,923 8,028
Total current assets 165,450 164,164
Investments 84,727 82,835
Other assets 43,620 35,974
Goodwill 44,805 46,328
Net property, plant and equipment 108,105 105,094
Total assets $446,707 $434,395
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable $10,000 $8,655
Accounts payable 29,861 29,126
Accrued liabilities 23,884 28,469
Other current liabilities 16,528 28,775
Total current liabilities 80,273 95,025
Long-term debt 151,404 170,000
Deferred taxes and other liabilities 32,083 24,986
Nonpension retirement benefits 49,676 52,541
Total shareholders' equity 133,271 91,843
Total liabilities and shareholders'
equity $446,707 $434,395
LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)
TWELVE MONTHS ENDED
December 31, 2000 December 31, 1999
Operating activities
Net income $46,866 $43,428
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation 14,055 14,717
Amortization 4,297 4,036
Capacity realignment charge -- 991
Other non-cash charges 6,803 7,517
Equity earnings (4,769) (2,915)
Net change in components of
working capital and other assets (30,354) 1,182
Net cash provided by
operating activities 36,898 68,956
Investing activities
Additions to property, plant and
equipment (18,096) (9,428)
Dividends received from equity
investments 2,940 517
Other (63) 94
Net cash used in investing
activities (15,219) (8,817)
Financing activities
Net bank credit facility activity (18,596) (6,300)
Other net borrowings 1,345 (6,217)
Stock options exercised 1,603 534
Treasury shares purchased (4,053) (42,828)
Dividends (4,569) (4,821)
Net cash used in financing
activities (24,270) (59,632)
Effect of exchange rate fluctuations
on cash (45) 99
Decrease in cash (2,636) 606
Cash at beginning of year 3,918 3,312
Cash at end of period $1,282 $3,918
LIBBEY INC.
CONDENSED CONSOLIDATED JOINT VENTURE INFORMATION
Income Statement Information
Three months ended December 31, 2000 1999
Net sales $61,457 $56,701
Cost of sales 45,394 38,392
Gross profit 16,063 18,309
Operating expenses 5,960 5,930
Income from operations 10,103 12,379
Other income (loss) 543 364
Earnings before finance costs and
taxes 10,646 12,743
Interest expense 2,500 2,589
Translation gain (loss) 245 (392)
Earnings before income taxes and
profit sharing 8,391 9,762
Income taxes and profit sharing 4,595 6,638
Net income $3,796 $3,124
Twelve months ended December 31, 2000 1999
Net sales $217,477 $189,699
Cost of sales 154,248 129,667
Gross profit 63,229 60,032
Operating expenses 22,817 21,260
Income from operations 40,412 38,772
Other income (loss) 1,326 (1,058)
Earnings before finance costs and
taxes 41,738 37,714
Interest expense 10,296 10,871
Translation gain (loss) 289 (1,392)
Earnings before income taxes and
profit sharing 31,731 25,451
Income taxes and profit sharing 18,534 16,040
Net income $13,197 $9,411
The above are summarized combined financial information for equity
investments, which includes the 49% ownership in Vitrocrisa, which
manufactures, markets and sells glass tableware (e.g. beverageware,
plates, bowls, serveware and accessories) and industrial glassware
(e.g. coffee pots, blender jars, meter covers, glass covers for cooking
ware and lighting fixtures sold to original equipment manufacturers) and
the 49% ownership in Crisa Industrial, L.L.C., which distributes
industrial glassware in the U.S. and Canada for Vitrocrisa, for 2000 and
1999.
SOURCE Libbey Incorporatedd
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Related links:
http://www.libbey.com
CONTACT:
Kenneth Wilkes, VP-CFO, 419-325-2490, or
Kenneth Boerger, VP-Treasurer, 419-325-2279, both of Libbey Inc.;
or Analyst Inquiries, Suzy Lynde of The Financial Relations
Board, 312-640-6772
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