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Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Stock-based compensation expense | $ | 1,003 | $ | 824 |
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(dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||
Accounts receivable: | |||||||
Trade receivables | $ | 85,472 | $ | 87,499 | |||
Other receivables (see note 15) | 1,574 | 7,050 | |||||
Total accounts receivable, less allowances of $6,216 and $5,846 | $ | 87,046 | $ | 94,549 | |||
Inventories: | |||||||
Finished goods | $ | 156,237 | $ | 144,945 | |||
Work in process | 1,650 | 1,615 | |||||
Raw materials | 4,300 | 4,558 | |||||
Repair parts | 10,766 | 10,550 | |||||
Operating supplies | 1,226 | 1,453 | |||||
Total inventories, less loss provisions of $4,784 and $4,913 | $ | 174,179 | $ | 163,121 | |||
Prepaid and other current assets: | |||||||
Value added tax | $ | 9,732 | $ | 6,697 | |||
Prepaid expenses | 10,590 | 8,396 | |||||
Deferred income taxes | 5,840 | 5,840 | |||||
Prepaid income taxes | 5,164 | 3,511 | |||||
Derivative asset | 573 | 394 | |||||
Total prepaid and other current assets | $ | 31,899 | $ | 24,838 | |||
Other assets: | |||||||
Deposits | $ | 944 | $ | 919 | |||
Finance fees — net of amortization | 10,023 | 10,472 | |||||
Other assets | 2,167 | 2,143 | |||||
Total other assets | $ | 13,134 | $ | 13,534 | |||
Accrued liabilities: | |||||||
Accrued incentives | $ | 15,801 | $ | 17,830 | |||
Workers compensation | 7,178 | 7,108 | |||||
Medical liabilities | 3,246 | 3,433 | |||||
Interest | 10,138 | 3,331 | |||||
Commissions payable | 856 | 1,067 | |||||
Withholdings and other non-income tax accruals | 2,829 | 1,929 | |||||
Other accrued liabilities | 6,851 | 6,720 | |||||
Total accrued liabilities | $ | 46,899 | $ | 41,418 | |||
Other long-term liabilities: | |||||||
Deferred liability | $ | 7,863 | $ | 7,424 | |||
Derivative liability | — | 2,073 | |||||
Other long-term liabilities | 3,869 | 4,277 | |||||
Total other long-term liabilities | $ | 11,732 | $ | 13,774 |
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(dollars in thousands) | Interest Rate | Maturity Date | March 31, 2014 | December 31, 2013 | ||||||
Borrowings under ABL Facility | floating | May 18, 2017 | $ | — | $ | — | ||||
Senior Secured Notes | 6.875% | (1) | May 15, 2020 | 405,000 | 405,000 | |||||
Promissory Note | 6.00% | April, 2014 to September, 2016 | 624 | 681 | ||||||
RMB Working Capital Loan | floating | September, 2014 | 5,112 | 5,157 | ||||||
AICEP Loan | 0.00% | January, 2016 to July 30, 2018 | 2,388 | 2,389 | ||||||
Total borrowings | 413,124 | 413,227 | ||||||||
Plus — carrying value adjustment on debt related to the Interest Rate Agreement (1) | (965 | ) | (1,324 | ) | ||||||
Total borrowings — net | 412,159 | 411,903 | ||||||||
Less — long term debt due within one year | 5,351 | 5,391 | ||||||||
Total long-term portion of borrowings — net | $ | 406,808 | $ | 406,512 |
(1) | See Interest Rate Agreement under “Senior Secured Notes” below and in note 9. |
• | a first-priority security interest in substantially all of the existing and future personal property of Libbey Glass and its domestic subsidiaries (Credit Agreement Priority Collateral); |
• | a first-priority security interest in: |
• | 100 percent of the stock of Libbey Glass and 100 percent of the stock of substantially all of Libbey Glass’s present and future direct and indirect domestic subsidiaries; |
• | 100 percent of the non-voting stock of substantially all of Libbey Glass’s first-tier present and future foreign subsidiaries; and |
• | 65 percent of the voting stock of substantially all of Libbey Glass’s first-tier present and future foreign subsidiaries |
• | a first priority security interest in substantially all proceeds and products of the property and assets described above; and |
• | a second-priority security interest in substantially all of the owned real property, equipment and fixtures in the United States of Libbey Glass and its domestic subsidiaries, subject to certain exceptions and permitted liens (Notes Priority Collateral). |
• | a first-priority lien on substantially all of the existing and future real and personal property of Libbey Europe and its Dutch subsidiaries; and |
• | a first-priority security interest in: |
• | 100 percent of the stock of Libbey Europe and 100 percent of the stock of substantially all of the Dutch subsidiaries; and |
• | 100 percent (or a lesser percentage in certain circumstances) of the outstanding stock issued by the first-tier foreign subsidiaries of Libbey Europe and its Dutch subsidiaries. |
• | incur, assume or guarantee additional indebtedness; |
• | pay dividends, make certain investments or other restricted payments; |
• | create liens; |
• | enter into affiliate transactions; |
• | merge or consolidate, or otherwise dispose of all or substantially all the assets of Libbey Glass and the Guarantors; and |
• | transfer or sell assets. |
(dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||
Fair market value of Rate Agreement - asset (liability) | $ | (1,644 | ) | $ | (2,073 | ) | |
Adjustment to increase (decrease) carrying value of the related long-term debt | $ | (965 | ) | $ | (1,324 | ) |
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Three months ended March 31, | Total Charges to Date | ||||||||||
(dollars in thousands) | 2014 | 2013 | |||||||||
Accelerated depreciation & other | $ | — | $ | 566 | $ | 1,685 | |||||
Other restructuring expenses | 985 | — | 985 | ||||||||
Included in cost of sales | 985 | 566 | 2,670 | ||||||||
Employee termination cost & other | — | 2,322 | 1,794 | ||||||||
Fixed asset write-down | — | 1,992 | 1,924 | ||||||||
Other restructuring expenses | — | — | 1,141 | ||||||||
Included in special charges | — | 4,314 | 4,859 | ||||||||
Total pretax charge | $ | 985 | $ | 4,880 | $ | 7,529 |
(dollars in thousands) | Reserve Balance at January 1, 2014 | Total Charge to Earnings | Cash (payments) receipts | Non-cash Utilization | Reserve Balance at March 31, 2014 | ||||||||||||||
Employee termination cost & other | $ | 289 | $ | — | $ | (243 | ) | $ | — | $ | 46 | ||||||||
Other restructuring expenses | — | 985 | (985 | ) | — | — | |||||||||||||
Total | $ | 289 | $ | 985 | $ | (1,228 | ) | $ | — | $ | 46 |
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Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Total income tax payments, net of refunds | $ | 2,728 | $ | 2,269 | |||
Less: credits or offsets | 912 | 385 | |||||
Cash paid, net | $ | 1,816 | $ | 1,884 |
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Three months ended March 31, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 1,025 | $ | 1,278 | $ | 578 | $ | 722 | $ | 1,603 | $ | 2,000 | |||||||||||
Interest cost | 3,870 | 3,481 | 1,424 | 1,256 | 5,294 | 4,737 | |||||||||||||||||
Expected return on plan assets | (5,608 | ) | (5,599 | ) | (632 | ) | (481 | ) | (6,240 | ) | (6,080 | ) | |||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 265 | 293 | 57 | 62 | 322 | 355 | |||||||||||||||||
Loss | 1,242 | 2,087 | 258 | 238 | 1,500 | 2,325 | |||||||||||||||||
Pension expense | $ | 794 | $ | 1,540 | $ | 1,685 | $ | 1,797 | $ | 2,479 | $ | 3,337 |
Three months ended March 31, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 252 | $ | 392 | $ | — | $ | — | $ | 252 | $ | 392 | |||||||||||
Interest cost | 710 | 701 | 27 | 23 | 737 | 724 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 35 | 34 | — | — | 35 | 34 | |||||||||||||||||
Loss / (gain) | 67 | 291 | — | (1 | ) | 67 | 290 | ||||||||||||||||
Non-pension postretirement benefit expense | $ | 1,064 | $ | 1,418 | $ | 27 | $ | 22 | $ | 1,091 | $ | 1,440 |
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Asset Derivatives: | ||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Prepaid and other current assets | $ | 573 | Prepaid and other current assets | $ | 394 | ||||||
Natural gas contracts | Other assets | 5 | Other assets | 19 | ||||||||
Total designated | 578 | 413 | ||||||||||
Total | $ | 578 | $ | 413 | ||||||||
Liability Derivatives: | ||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Interest rate contract | Derivative liability - current | $ | 1,537 | Derivative liability - current | $ | — | ||||||
Interest rate contract | Other long-term liabilities | — | Other long-term liabilities | 1,866 | ||||||||
Total designated | 1,537 | 1,866 | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Interest rate contract | Derivative liability - current | 107 | Derivative liability - current | — | ||||||||
Interest rate contract | Other long-term liabilities | — | Other long-term liabilities | 207 | ||||||||
Total undesignated | 107 | 207 | ||||||||||
Total | $ | 1,644 | $ | 2,073 |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Interest rate swap - designated | $ | 329 | $ | (356 | ) | |||
Related long-term debt | (359 | ) | 134 | |||||
Net impact in other income (expense) | $ | (30 | ) | $ | (222 | ) |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||
Natural gas contracts | $ | 630 | $ | 967 | ||||
Total | $ | 630 | $ | 967 |
Three months ended March 31, | |||||||||
(dollars in thousands) | 2014 | 2013 | |||||||
Derivative: | Location: | ||||||||
Natural gas contracts | Cost of sales | $ | 465 | $ | (246 | ) | |||
Total impact on net income (loss) | $ | 465 | $ | (246 | ) |
Three months ended March 31, | |||||||||
(dollars in thousands) | 2014 | 2013 | |||||||
Derivative: | Location: | ||||||||
Currency contracts | Other income (expense) | $ | — | $ | 251 | ||||
Total | $ | — | $ | 251 |
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Three months ended March 31, 2014 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Total Accumulated Comprehensive Loss | ||||||||||||
Balance on December 31, 2013 | $ | 4,554 | $ | 1,221 | $ | (78,935 | ) | $ | (73,160 | ) | ||||||
Other comprehensive income (loss) | (588 | ) | 630 | — | 42 | |||||||||||
Currency impact | — | — | 13 | 13 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 1,567 | 1,567 | ||||||||||||
Amortization of prior service cost (1) | — | — | 357 | 357 | ||||||||||||
Cost of sales | — | (465 | ) | — | (465 | ) | ||||||||||
Current-period other comprehensive income (loss) | (588 | ) | 165 | 1,937 | 1,514 | |||||||||||
Tax effect | — | (27 | ) | (588 | ) | (615 | ) | |||||||||
Balance on March 31, 2014 | $ | 3,966 | $ | 1,359 | $ | (77,586 | ) | $ | (72,261 | ) |
Three months ended March 31, 2013 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Total Accumulated Comprehensive Loss | ||||||||||||
Balance on December 31, 2012 | $ | (1,641 | ) | $ | 489 | $ | (139,888 | ) | $ | (141,040 | ) | |||||
Other comprehensive income (loss) | (2,925 | ) | 967 | — | (1,958 | ) | ||||||||||
Currency impact | — | — | (352 | ) | (352 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 2,600 | 2,600 | ||||||||||||
Amortization of prior service cost (1) | — | — | 390 | 390 | ||||||||||||
Cost of sales | — | 246 | — | 246 | ||||||||||||
Current-period other comprehensive income (loss) | (2,925 | ) | 1,213 | 2,638 | 926 | |||||||||||
Tax effect | — | (168 | ) | 33 | (135 | ) | ||||||||||
Balance on March 31, 2013 | $ | (4,566 | ) | $ | 1,534 | $ | (137,217 | ) | $ | (140,249 | ) |
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Three months ended March 31, 2014 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 83,792 | $ | 18,697 | $ | 98,794 | $ | (19,702 | ) | $ | 181,581 | ||||||||||
Freight billed to customers | — | 168 | 191 | 455 | — | 814 | |||||||||||||||||
Total revenues | — | 83,960 | 18,888 | 99,249 | (19,702 | ) | 182,395 | ||||||||||||||||
Cost of sales | — | 69,020 | 14,998 | 85,740 | (19,702 | ) | 150,056 | ||||||||||||||||
Gross profit | — | 14,940 | 3,890 | 13,509 | — | 32,339 | |||||||||||||||||
Selling, general and administrative expenses | — | 14,635 | 2,833 | 11,410 | — | 28,878 | |||||||||||||||||
Special charges | — | — | — | — | — | — | |||||||||||||||||
Income (loss) from operations | — | 305 | 1,057 | 2,099 | — | 3,461 | |||||||||||||||||
Other income (expense) | — | (332 | ) | (10 | ) | 20 | — | (322 | ) | ||||||||||||||
Earnings (loss) before interest and income taxes | — | (27 | ) | 1,047 | 2,119 | — | 3,139 | ||||||||||||||||
Interest expense | — | 5,773 | — | 1,928 | — | 7,701 | |||||||||||||||||
Income (loss) before income taxes | — | (5,800 | ) | 1,047 | 191 | — | (4,562 | ) | |||||||||||||||
Provision (benefit) for income taxes | — | (1,035 | ) | 24 | (167 | ) | — | (1,178 | ) | ||||||||||||||
Net income (loss) | — | (4,765 | ) | 1,023 | 358 | — | (3,384 | ) | |||||||||||||||
Equity in net income (loss) of subsidiaries | (3,384 | ) | 1,381 | — | — | 2,003 | — | ||||||||||||||||
Net income (loss) | $ | (3,384 | ) | $ | (3,384 | ) | $ | 1,023 | $ | 358 | $ | 2,003 | $ | (3,384 | ) | ||||||||
Comprehensive income (loss) | $ | (2,485 | ) | $ | (2,485 | ) | $ | 1,160 | $ | 164 | $ | 1,161 | $ | (2,485 | ) |
Three months ended March 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 86,930 | $ | 18,360 | $ | 89,379 | $ | (11,193 | ) | $ | 183,476 | ||||||||||
Freight billed to customers | — | 99 | 234 | 419 | — | 752 | |||||||||||||||||
Total revenues | — | 87,029 | 18,594 | 89,798 | (11,193 | ) | 184,228 | ||||||||||||||||
Cost of sales | — | 62,600 | 14,360 | 76,229 | (11,193 | ) | 141,996 | ||||||||||||||||
Gross profit | — | 24,429 | 4,234 | 13,569 | — | 42,232 | |||||||||||||||||
Selling, general and administrative expenses | — | 15,057 | 2,669 | 8,671 | — | 26,397 | |||||||||||||||||
Special charges | — | 4,314 | — | — | — | 4,314 | |||||||||||||||||
Income (loss) from operations | — | 5,058 | 1,565 | 4,898 | — | 11,521 | |||||||||||||||||
Other income (expense) | — | (1 | ) | (9 | ) | (425 | ) | — | (435 | ) | |||||||||||||
Earnings (loss) before interest and income taxes | — | 5,057 | 1,556 | 4,473 | — | 11,086 | |||||||||||||||||
Interest expense | — | 6,420 | — | 2,015 | — | 8,435 | |||||||||||||||||
Income (loss) before income taxes | — | (1,363 | ) | 1,556 | 2,458 | — | 2,651 | ||||||||||||||||
Provision (benefit) for income taxes | — | (819 | ) | 2 | 1,479 | — | 662 | ||||||||||||||||
Net income (loss) | — | (544 | ) | 1,554 | 979 | — | 1,989 | ||||||||||||||||
Equity in net income (loss) of subsidiaries | 1,989 | 2,533 | — | — | (4,522 | ) | — | ||||||||||||||||
Net income (loss) | $ | 1,989 | $ | 1,989 | $ | 1,554 | $ | 979 | $ | (4,522 | ) | $ | 1,989 | ||||||||||
Comprehensive income (loss) | $ | 2,780 | $ | 2,780 | $ | 1,696 | $ | (1,552 | ) | $ | (2,924 | ) | $ | 2,780 |
March 31, 2014 (unaudited) | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Cash and equivalents | $ | — | $ | 8,300 | $ | 40 | $ | 16,133 | $ | — | $ | 24,473 | |||||||||||
Accounts receivable — net | — | 32,658 | 5,944 | 48,444 | — | 87,046 | |||||||||||||||||
Inventories — net | — | 58,314 | 22,636 | 93,229 | — | 174,179 | |||||||||||||||||
Other current assets | — | 25,444 | 4,278 | 23,272 | (21,095 | ) | 31,899 | ||||||||||||||||
Total current assets | — | 124,716 | 32,898 | 181,078 | (21,095 | ) | 317,597 | ||||||||||||||||
Other non-current assets | — | 37,192 | 1,379 | 15,051 | (607 | ) | 53,015 | ||||||||||||||||
Investments in and advances to subsidiaries | 129,666 | 314,506 | 199,079 | (48,583 | ) | (594,668 | ) | — | |||||||||||||||
Goodwill and purchased intangible assets — net | — | 27,423 | 12,347 | 146,660 | — | 186,430 | |||||||||||||||||
Total other assets | 129,666 | 379,121 | 212,805 | 113,128 | (595,275 | ) | 239,445 | ||||||||||||||||
Property, plant and equipment — net | — | 67,758 | 266 | 196,594 | — | 264,618 | |||||||||||||||||
Total assets | $ | 129,666 | $ | 571,595 | $ | 245,969 | $ | 490,800 | $ | (616,370 | ) | $ | 821,660 | ||||||||||
Accounts payable | $ | — | $ | 14,458 | $ | 2,444 | $ | 57,197 | $ | — | $ | 74,099 | |||||||||||
Accrued and other current liabilities | — | 49,633 | 27,076 | 27,644 | (21,095 | ) | 83,258 | ||||||||||||||||
Notes payable and long-term debt due within one year | — | 239 | — | 5,112 | — | 5,351 | |||||||||||||||||
Total current liabilities | — | 64,330 | 29,520 | 89,953 | (21,095 | ) | 162,708 | ||||||||||||||||
Long-term debt | — | 404,420 | — | 2,388 | — | 406,808 | |||||||||||||||||
Other long-term liabilities | — | 64,542 | 8,036 | 50,507 | (607 | ) | 122,478 | ||||||||||||||||
Total liabilities | — | 533,292 | 37,556 | 142,848 | (21,702 | ) | 691,994 | ||||||||||||||||
Total shareholders’ equity | 129,666 | 38,303 | 208,413 | 347,952 | (594,668 | ) | 129,666 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 129,666 | $ | 571,595 | $ | 245,969 | $ | 490,800 | $ | (616,370 | ) | $ | 821,660 |
December 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Cash and equivalents | $ | — | $ | 22,070 | $ | 62 | $ | 20,076 | $ | — | $ | 42,208 | |||||||||||
Accounts receivable — net | — | 41,193 | 4,562 | 48,794 | — | 94,549 | |||||||||||||||||
Inventories — net | — | 51,571 | 22,907 | 88,643 | — | 163,121 | |||||||||||||||||
Other current assets | — | 23,183 | 3,999 | 18,751 | (21,095 | ) | 24,838 | ||||||||||||||||
Total current assets | — | 138,017 | 31,530 | 176,264 | (21,095 | ) | 324,716 | ||||||||||||||||
Other non-current assets | — | 38,661 | 1,379 | 13,475 | (607 | ) | 52,908 | ||||||||||||||||
Investments in and advances to subsidiaries | 130,809 | 304,266 | 199,573 | (41,361 | ) | (593,287 | ) | — | |||||||||||||||
Goodwill and purchased intangible assets — net | — | 27,423 | 12,347 | 146,934 | — | 186,704 | |||||||||||||||||
Total other assets | 130,809 | 370,350 | 213,299 | 119,048 | (593,894 | ) | 239,612 | ||||||||||||||||
Property, plant and equipment — net | — | 67,836 | 278 | 197,548 | — | 265,662 | |||||||||||||||||
Total assets | $ | 130,809 | $ | 576,203 | $ | 245,107 | $ | 492,860 | $ | (614,989 | ) | $ | 829,990 | ||||||||||
Accounts payable | $ | — | $ | 16,086 | $ | 3,404 | $ | 60,130 | $ | — | $ | 79,620 | |||||||||||
Accrued and other current liabilities | — | 50,292 | 26,243 | 27,674 | (21,095 | ) | 83,114 | ||||||||||||||||
Notes payable and long-term debt due within one year | — | 235 | — | 5,156 | — | 5,391 | |||||||||||||||||
Total current liabilities | — | 66,613 | 29,647 | 92,960 | (21,095 | ) | 168,125 | ||||||||||||||||
Long-term debt | — | 404,122 | — | 2,390 | — | 406,512 | |||||||||||||||||
Other long-term liabilities | — | 67,225 | 8,205 | 49,721 | (607 | ) | 124,544 | ||||||||||||||||
Total liabilities | — | 537,960 | 37,852 | 145,071 | (21,702 | ) | 699,181 | ||||||||||||||||
Total shareholders’ equity | 130,809 | 38,243 | 207,255 | 347,789 | (593,287 | ) | 130,809 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 130,809 | $ | 576,203 | $ | 245,107 | $ | 492,860 | $ | (614,989 | ) | $ | 829,990 |
Three months ended March 31, 2014 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | (3,384 | ) | $ | (3,384 | ) | $ | 1,023 | $ | 358 | $ | 2,003 | $ | (3,384 | ) | ||||||||
Depreciation and amortization | — | 3,199 | 11 | 7,466 | — | 10,676 | |||||||||||||||||
Other operating activities | 3,384 | (15,119 | ) | (1,056 | ) | (4,867 | ) | (2,003 | ) | (19,661 | ) | ||||||||||||
Net cash provided by (used in) operating activities | — | (15,304 | ) | (22 | ) | 2,957 | — | (12,369 | ) | ||||||||||||||
Additions to property, plant & equipment | — | (3,098 | ) | — | (6,803 | ) | — | (9,901 | ) | ||||||||||||||
Other investing activities | — | 4,346 | — | 4 | — | 4,350 | |||||||||||||||||
Net cash (used in) investing activities | — | 1,248 | — | (6,799 | ) | — | (5,551 | ) | |||||||||||||||
Net borrowings (repayments) | — | (50 | ) | — | — | — | (50 | ) | |||||||||||||||
Other financing activities | — | 336 | — | — | — | 336 | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 286 | — | — | — | 286 | |||||||||||||||||
Exchange effect on cash | — | — | — | (101 | ) | — | (101 | ) | |||||||||||||||
Increase (decrease) in cash | — | (13,770 | ) | (22 | ) | (3,943 | ) | — | (17,735 | ) | |||||||||||||
Cash at beginning of period | — | 22,070 | 62 | 20,076 | — | 42,208 | |||||||||||||||||
Cash at end of period | $ | — | $ | 8,300 | $ | 40 | $ | 16,133 | $ | — | $ | 24,473 |
Three months ended March 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 1,989 | $ | 1,989 | $ | 1,554 | $ | 979 | $ | (4,522 | ) | $ | 1,989 | ||||||||||
Depreciation and amortization | — | 4,114 | 17 | 6,643 | — | 10,774 | |||||||||||||||||
Other operating activities | (1,989 | ) | (19,007 | ) | (1,548 | ) | (7,421 | ) | 4,522 | (25,443 | ) | ||||||||||||
Net cash provided by (used in) operating activities | — | (12,904 | ) | 23 | 201 | — | (12,680 | ) | |||||||||||||||
Additions to property, plant & equipment | — | (2,004 | ) | — | (6,878 | ) | — | (8,882 | ) | ||||||||||||||
Other investing activities | — | 1 | — | 3 | — | 4 | |||||||||||||||||
Net cash (used in) investing activities | — | (2,003 | ) | — | (6,875 | ) | — | (8,878 | ) | ||||||||||||||
Net borrowings (repayments) | — | (54 | ) | — | (5 | ) | — | (59 | ) | ||||||||||||||
Other financing activities | — | 537 | — | — | — | 537 | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 483 | — | (5 | ) | — | 478 | ||||||||||||||||
Exchange effect on cash | — | — | — | (179 | ) | — | (179 | ) | |||||||||||||||
Increase (decrease) in cash | — | (14,424 | ) | 23 | (6,858 | ) | — | (21,259 | ) | ||||||||||||||
Cash at beginning of period | — | 43,558 | 70 | 23,580 | — | 67,208 | |||||||||||||||||
Cash at end of period | $ | — | $ | 29,134 | $ | 93 | $ | 16,722 | $ | — | $ | 45,949 |
|
Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Net Sales: | |||||||
Americas | $ | 121,925 | $ | 123,535 | |||
EMEA | 34,398 | 34,242 | |||||
U.S. Sourcing | 17,734 | 17,484 | |||||
Other | 7,524 | 8,215 | |||||
Consolidated | $ | 181,581 | $ | 183,476 | |||
Segment EBIT: | |||||||
Americas | $ | 14,989 | $ | 18,802 | |||
EMEA | 253 | (1,362 | ) | ||||
U.S. Sourcing | 868 | 1,541 | |||||
Other | 445 | 2,285 | |||||
Total Segment EBIT | $ | 16,555 | $ | 21,266 | |||
Reconciliation of Segment EBIT to Net Income (Loss): | |||||||
Segment EBIT | $ | 16,555 | $ | 21,266 | |||
Retained corporate costs | (7,125 | ) | (5,300 | ) | |||
Furnace malfunction | (5,306 | ) | — | ||||
Restructuring charges (note 5) | (985 | ) | (4,880 | ) | |||
Interest expense | (7,701 | ) | (8,435 | ) | |||
Income taxes | 1,178 | (662 | ) | ||||
Net income (loss) | $ | (3,384 | ) | $ | 1,989 | ||
Depreciation & Amortization: | |||||||
Americas | $ | 5,959 | $ | 6,528 | |||
EMEA | 2,626 | 2,486 | |||||
U.S. Sourcing | 7 | 9 | |||||
Other | 1,644 | 1,374 | |||||
Corporate | 440 | 377 | |||||
Consolidated | $ | 10,676 | $ | 10,774 | |||
Capital Expenditures: | |||||||
Americas | $ | 7,132 | $ | 6,875 | |||
EMEA | 1,561 | 1,296 | |||||
U.S. Sourcing | — | — | |||||
Other | 572 | 335 | |||||
Corporate | 636 | 376 | |||||
Consolidated | $ | 9,901 | $ | 8,882 |
|
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
• | Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. |
• | Level 3 — Unobservable inputs based on our own assumptions. |
Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||
Asset / (Liability) (dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Commodity futures natural gas contracts | $ | — | $ | 578 | $ | — | $ | 578 | $ | — | $ | 413 | $ | — | $ | 413 | |||||||||||||||
Currency contracts | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Interest rate agreement | — | (1,644 | ) | — | (1,644 | ) | — | (2,073 | ) | — | (2,073 | ) | |||||||||||||||||||
Net derivative asset (liability) | $ | — | $ | (1,066 | ) | $ | — | $ | (1,066 | ) | $ | — | $ | (1,660 | ) | $ | — | $ | (1,660 | ) |
Asset / (Liability) (dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||
Prepaid and other current assets | $ | 573 | $ | 394 | ||||
Other assets | 5 | 19 | ||||||
Derivative liability | (1,644 | ) | — | |||||
Other long-term liabilities | — | (2,073 | ) | |||||
Net derivative asset (liability) | $ | (1,066 | ) | $ | (1,660 | ) |
|
Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Gain (loss) on currency translation | $ | (275 | ) | $ | (283 | ) | |
Hedge ineffectiveness | 70 | (222 | ) | ||||
Other non-operating income (expense) | (117 | ) | 70 | ||||
Other income (expense) | $ | (322 | ) | $ | (435 | ) |
|
|
• | the entry into an amended and restated credit agreement with respect to our ABL Facility; |
• | the issuance of $440.0 million in aggregate principal amount of the Senior Secured Term Loan B facility of Libbey Glass due 2021, which bears an interest rate of LIBOR plus 3.0 percent, subject to a LIBOR "floor" of 0.75 percent. The interest rate was 3.75 percent at commencement; and |
• | the repurchase and cancellation of all Libbey Glass's then outstanding $405.0 million in aggregate principal amount Senior Secured Notes ($360.0 million on April 9, 2014 and $45.0 million on May 9, 2014). |
|
|
Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Stock-based compensation expense | $ | 1,003 | $ | 824 |
|
(dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||
Accounts receivable: | |||||||
Trade receivables | $ | 85,472 | $ | 87,499 | |||
Other receivables (see note 15) | 1,574 | 7,050 | |||||
Total accounts receivable, less allowances of $6,216 and $5,846 | $ | 87,046 | $ | 94,549 | |||
Inventories: | |||||||
Finished goods | $ | 156,237 | $ | 144,945 | |||
Work in process | 1,650 | 1,615 | |||||
Raw materials | 4,300 | 4,558 | |||||
Repair parts | 10,766 | 10,550 | |||||
Operating supplies | 1,226 | 1,453 | |||||
Total inventories, less loss provisions of $4,784 and $4,913 | $ | 174,179 | $ | 163,121 | |||
Prepaid and other current assets: | |||||||
Value added tax | $ | 9,732 | $ | 6,697 | |||
Prepaid expenses | 10,590 | 8,396 | |||||
Deferred income taxes | 5,840 | 5,840 | |||||
Prepaid income taxes | 5,164 | 3,511 | |||||
Derivative asset | 573 | 394 | |||||
Total prepaid and other current assets | $ | 31,899 | $ | 24,838 | |||
Other assets: | |||||||
Deposits | $ | 944 | $ | 919 | |||
Finance fees — net of amortization | 10,023 | 10,472 | |||||
Other assets | 2,167 | 2,143 | |||||
Total other assets | $ | 13,134 | $ | 13,534 | |||
Accrued liabilities: | |||||||
Accrued incentives | $ | 15,801 | $ | 17,830 | |||
Workers compensation | 7,178 | 7,108 | |||||
Medical liabilities | 3,246 | 3,433 | |||||
Interest | 10,138 | 3,331 | |||||
Commissions payable | 856 | 1,067 | |||||
Withholdings and other non-income tax accruals | 2,829 | 1,929 | |||||
Other accrued liabilities | 6,851 | 6,720 | |||||
Total accrued liabilities | $ | 46,899 | $ | 41,418 | |||
Other long-term liabilities: | |||||||
Deferred liability | $ | 7,863 | $ | 7,424 | |||
Derivative liability | — | 2,073 | |||||
Other long-term liabilities | 3,869 | 4,277 | |||||
Total other long-term liabilities | $ | 11,732 | $ | 13,774 |
|
(dollars in thousands) | Interest Rate | Maturity Date | March 31, 2014 | December 31, 2013 | ||||||
Borrowings under ABL Facility | floating | May 18, 2017 | $ | — | $ | — | ||||
Senior Secured Notes | 6.875% | (1) | May 15, 2020 | 405,000 | 405,000 | |||||
Promissory Note | 6.00% | April, 2014 to September, 2016 | 624 | 681 | ||||||
RMB Working Capital Loan | floating | September, 2014 | 5,112 | 5,157 | ||||||
AICEP Loan | 0.00% | January, 2016 to July 30, 2018 | 2,388 | 2,389 | ||||||
Total borrowings | 413,124 | 413,227 | ||||||||
Plus — carrying value adjustment on debt related to the Interest Rate Agreement (1) | (965 | ) | (1,324 | ) | ||||||
Total borrowings — net | 412,159 | 411,903 | ||||||||
Less — long term debt due within one year | 5,351 | 5,391 | ||||||||
Total long-term portion of borrowings — net | $ | 406,808 | $ | 406,512 |
(1) | See Interest Rate Agreement under “Senior Secured Notes” below and in note 9. |
(dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||
Fair market value of Rate Agreement - asset (liability) | $ | (1,644 | ) | $ | (2,073 | ) | |
Adjustment to increase (decrease) carrying value of the related long-term debt | $ | (965 | ) | $ | (1,324 | ) |
|
Three months ended March 31, | Total Charges to Date | ||||||||||
(dollars in thousands) | 2014 | 2013 | |||||||||
Accelerated depreciation & other | $ | — | $ | 566 | $ | 1,685 | |||||
Other restructuring expenses | 985 | — | 985 | ||||||||
Included in cost of sales | 985 | 566 | 2,670 | ||||||||
Employee termination cost & other | — | 2,322 | 1,794 | ||||||||
Fixed asset write-down | — | 1,992 | 1,924 | ||||||||
Other restructuring expenses | — | — | 1,141 | ||||||||
Included in special charges | — | 4,314 | 4,859 | ||||||||
Total pretax charge | $ | 985 | $ | 4,880 | $ | 7,529 |
(dollars in thousands) | Reserve Balance at January 1, 2014 | Total Charge to Earnings | Cash (payments) receipts | Non-cash Utilization | Reserve Balance at March 31, 2014 | ||||||||||||||
Employee termination cost & other | $ | 289 | $ | — | $ | (243 | ) | $ | — | $ | 46 | ||||||||
Other restructuring expenses | — | 985 | (985 | ) | — | — | |||||||||||||
Total | $ | 289 | $ | 985 | $ | (1,228 | ) | $ | — | $ | 46 |
|
Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Total income tax payments, net of refunds | $ | 2,728 | $ | 2,269 | |||
Less: credits or offsets | 912 | 385 | |||||
Cash paid, net | $ | 1,816 | $ | 1,884 |
|
Three months ended March 31, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 1,025 | $ | 1,278 | $ | 578 | $ | 722 | $ | 1,603 | $ | 2,000 | |||||||||||
Interest cost | 3,870 | 3,481 | 1,424 | 1,256 | 5,294 | 4,737 | |||||||||||||||||
Expected return on plan assets | (5,608 | ) | (5,599 | ) | (632 | ) | (481 | ) | (6,240 | ) | (6,080 | ) | |||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 265 | 293 | 57 | 62 | 322 | 355 | |||||||||||||||||
Loss | 1,242 | 2,087 | 258 | 238 | 1,500 | 2,325 | |||||||||||||||||
Pension expense | $ | 794 | $ | 1,540 | $ | 1,685 | $ | 1,797 | $ | 2,479 | $ | 3,337 |
Three months ended March 31, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 252 | $ | 392 | $ | — | $ | — | $ | 252 | $ | 392 | |||||||||||
Interest cost | 710 | 701 | 27 | 23 | 737 | 724 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 35 | 34 | — | — | 35 | 34 | |||||||||||||||||
Loss / (gain) | 67 | 291 | — | (1 | ) | 67 | 290 | ||||||||||||||||
Non-pension postretirement benefit expense | $ | 1,064 | $ | 1,418 | $ | 27 | $ | 22 | $ | 1,091 | $ | 1,440 |
|
Asset Derivatives: | ||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Prepaid and other current assets | $ | 573 | Prepaid and other current assets | $ | 394 | ||||||
Natural gas contracts | Other assets | 5 | Other assets | 19 | ||||||||
Total designated | 578 | 413 | ||||||||||
Total | $ | 578 | $ | 413 | ||||||||
Liability Derivatives: | ||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Interest rate contract | Derivative liability - current | $ | 1,537 | Derivative liability - current | $ | — | ||||||
Interest rate contract | Other long-term liabilities | — | Other long-term liabilities | 1,866 | ||||||||
Total designated | 1,537 | 1,866 | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Interest rate contract | Derivative liability - current | 107 | Derivative liability - current | — | ||||||||
Interest rate contract | Other long-term liabilities | — | Other long-term liabilities | 207 | ||||||||
Total undesignated | 107 | 207 | ||||||||||
Total | $ | 1,644 | $ | 2,073 |
Three months ended March 31, | |||||||||
(dollars in thousands) | 2014 | 2013 | |||||||
Derivative: | Location: | ||||||||
Natural gas contracts | Cost of sales | $ | 465 | $ | (246 | ) | |||
Total impact on net income (loss) | $ | 465 | $ | (246 | ) |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Interest rate swap - designated | $ | 329 | $ | (356 | ) | |||
Related long-term debt | (359 | ) | 134 | |||||
Net impact in other income (expense) | $ | (30 | ) | $ | (222 | ) |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||
Natural gas contracts | $ | 630 | $ | 967 | ||||
Total | $ | 630 | $ | 967 |
Three months ended March 31, | |||||||||
(dollars in thousands) | 2014 | 2013 | |||||||
Derivative: | Location: | ||||||||
Currency contracts | Other income (expense) | $ | — | $ | 251 | ||||
Total | $ | — | $ | 251 |
|
Three months ended March 31, 2014 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Total Accumulated Comprehensive Loss | ||||||||||||
Balance on December 31, 2013 | $ | 4,554 | $ | 1,221 | $ | (78,935 | ) | $ | (73,160 | ) | ||||||
Other comprehensive income (loss) | (588 | ) | 630 | — | 42 | |||||||||||
Currency impact | — | — | 13 | 13 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 1,567 | 1,567 | ||||||||||||
Amortization of prior service cost (1) | — | — | 357 | 357 | ||||||||||||
Cost of sales | — | (465 | ) | — | (465 | ) | ||||||||||
Current-period other comprehensive income (loss) | (588 | ) | 165 | 1,937 | 1,514 | |||||||||||
Tax effect | — | (27 | ) | (588 | ) | (615 | ) | |||||||||
Balance on March 31, 2014 | $ | 3,966 | $ | 1,359 | $ | (77,586 | ) | $ | (72,261 | ) |
|
Three months ended March 31, 2014 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 83,792 | $ | 18,697 | $ | 98,794 | $ | (19,702 | ) | $ | 181,581 | ||||||||||
Freight billed to customers | — | 168 | 191 | 455 | — | 814 | |||||||||||||||||
Total revenues | — | 83,960 | 18,888 | 99,249 | (19,702 | ) | 182,395 | ||||||||||||||||
Cost of sales | — | 69,020 | 14,998 | 85,740 | (19,702 | ) | 150,056 | ||||||||||||||||
Gross profit | — | 14,940 | 3,890 | 13,509 | — | 32,339 | |||||||||||||||||
Selling, general and administrative expenses | — | 14,635 | 2,833 | 11,410 | — | 28,878 | |||||||||||||||||
Special charges | — | — | — | — | — | — | |||||||||||||||||
Income (loss) from operations | — | 305 | 1,057 | 2,099 | — | 3,461 | |||||||||||||||||
Other income (expense) | — | (332 | ) | (10 | ) | 20 | — | (322 | ) | ||||||||||||||
Earnings (loss) before interest and income taxes | — | (27 | ) | 1,047 | 2,119 | — | 3,139 | ||||||||||||||||
Interest expense | — | 5,773 | — | 1,928 | — | 7,701 | |||||||||||||||||
Income (loss) before income taxes | — | (5,800 | ) | 1,047 | 191 | — | (4,562 | ) | |||||||||||||||
Provision (benefit) for income taxes | — | (1,035 | ) | 24 | (167 | ) | — | (1,178 | ) | ||||||||||||||
Net income (loss) | — | (4,765 | ) | 1,023 | 358 | — | (3,384 | ) | |||||||||||||||
Equity in net income (loss) of subsidiaries | (3,384 | ) | 1,381 | — | — | 2,003 | — | ||||||||||||||||
Net income (loss) | $ | (3,384 | ) | $ | (3,384 | ) | $ | 1,023 | $ | 358 | $ | 2,003 | $ | (3,384 | ) | ||||||||
Comprehensive income (loss) | $ | (2,485 | ) | $ | (2,485 | ) | $ | 1,160 | $ | 164 | $ | 1,161 | $ | (2,485 | ) |
Three months ended March 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 86,930 | $ | 18,360 | $ | 89,379 | $ | (11,193 | ) | $ | 183,476 | ||||||||||
Freight billed to customers | — | 99 | 234 | 419 | — | 752 | |||||||||||||||||
Total revenues | — | 87,029 | 18,594 | 89,798 | (11,193 | ) | 184,228 | ||||||||||||||||
Cost of sales | — | 62,600 | 14,360 | 76,229 | (11,193 | ) | 141,996 | ||||||||||||||||
Gross profit | — | 24,429 | 4,234 | 13,569 | — | 42,232 | |||||||||||||||||
Selling, general and administrative expenses | — | 15,057 | 2,669 | 8,671 | — | 26,397 | |||||||||||||||||
Special charges | — | 4,314 | — | — | — | 4,314 | |||||||||||||||||
Income (loss) from operations | — | 5,058 | 1,565 | 4,898 | — | 11,521 | |||||||||||||||||
Other income (expense) | — | (1 | ) | (9 | ) | (425 | ) | — | (435 | ) | |||||||||||||
Earnings (loss) before interest and income taxes | — | 5,057 | 1,556 | 4,473 | — | 11,086 | |||||||||||||||||
Interest expense | — | 6,420 | — | 2,015 | — | 8,435 | |||||||||||||||||
Income (loss) before income taxes | — | (1,363 | ) | 1,556 | 2,458 | — | 2,651 | ||||||||||||||||
Provision (benefit) for income taxes | — | (819 | ) | 2 | 1,479 | — | 662 | ||||||||||||||||
Net income (loss) | — | (544 | ) | 1,554 | 979 | — | 1,989 | ||||||||||||||||
Equity in net income (loss) of subsidiaries | 1,989 | 2,533 | — | — | (4,522 | ) | — | ||||||||||||||||
Net income (loss) | $ | 1,989 | $ | 1,989 | $ | 1,554 | $ | 979 | $ | (4,522 | ) | $ | 1,989 | ||||||||||
Comprehensive income (loss) | $ | 2,780 | $ | 2,780 | $ | 1,696 | $ | (1,552 | ) | $ | (2,924 | ) | $ | 2,780 |
March 31, 2014 (unaudited) | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Cash and equivalents | $ | — | $ | 8,300 | $ | 40 | $ | 16,133 | $ | — | $ | 24,473 | |||||||||||
Accounts receivable — net | — | 32,658 | 5,944 | 48,444 | — | 87,046 | |||||||||||||||||
Inventories — net | — | 58,314 | 22,636 | 93,229 | — | 174,179 | |||||||||||||||||
Other current assets | — | 25,444 | 4,278 | 23,272 | (21,095 | ) | 31,899 | ||||||||||||||||
Total current assets | — | 124,716 | 32,898 | 181,078 | (21,095 | ) | 317,597 | ||||||||||||||||
Other non-current assets | — | 37,192 | 1,379 | 15,051 | (607 | ) | 53,015 | ||||||||||||||||
Investments in and advances to subsidiaries | 129,666 | 314,506 | 199,079 | (48,583 | ) | (594,668 | ) | — | |||||||||||||||
Goodwill and purchased intangible assets — net | — | 27,423 | 12,347 | 146,660 | — | 186,430 | |||||||||||||||||
Total other assets | 129,666 | 379,121 | 212,805 | 113,128 | (595,275 | ) | 239,445 | ||||||||||||||||
Property, plant and equipment — net | — | 67,758 | 266 | 196,594 | — | 264,618 | |||||||||||||||||
Total assets | $ | 129,666 | $ | 571,595 | $ | 245,969 | $ | 490,800 | $ | (616,370 | ) | $ | 821,660 | ||||||||||
Accounts payable | $ | — | $ | 14,458 | $ | 2,444 | $ | 57,197 | $ | — | $ | 74,099 | |||||||||||
Accrued and other current liabilities | — | 49,633 | 27,076 | 27,644 | (21,095 | ) | 83,258 | ||||||||||||||||
Notes payable and long-term debt due within one year | — | 239 | — | 5,112 | — | 5,351 | |||||||||||||||||
Total current liabilities | — | 64,330 | 29,520 | 89,953 | (21,095 | ) | 162,708 | ||||||||||||||||
Long-term debt | — | 404,420 | — | 2,388 | — | 406,808 | |||||||||||||||||
Other long-term liabilities | — | 64,542 | 8,036 | 50,507 | (607 | ) | 122,478 | ||||||||||||||||
Total liabilities | — | 533,292 | 37,556 | 142,848 | (21,702 | ) | 691,994 | ||||||||||||||||
Total shareholders’ equity | 129,666 | 38,303 | 208,413 | 347,952 | (594,668 | ) | 129,666 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 129,666 | $ | 571,595 | $ | 245,969 | $ | 490,800 | $ | (616,370 | ) | $ | 821,660 |
December 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Cash and equivalents | $ | — | $ | 22,070 | $ | 62 | $ | 20,076 | $ | — | $ | 42,208 | |||||||||||
Accounts receivable — net | — | 41,193 | 4,562 | 48,794 | — | 94,549 | |||||||||||||||||
Inventories — net | — | 51,571 | 22,907 | 88,643 | — | 163,121 | |||||||||||||||||
Other current assets | — | 23,183 | 3,999 | 18,751 | (21,095 | ) | 24,838 | ||||||||||||||||
Total current assets | — | 138,017 | 31,530 | 176,264 | (21,095 | ) | 324,716 | ||||||||||||||||
Other non-current assets | — | 38,661 | 1,379 | 13,475 | (607 | ) | 52,908 | ||||||||||||||||
Investments in and advances to subsidiaries | 130,809 | 304,266 | 199,573 | (41,361 | ) | (593,287 | ) | — | |||||||||||||||
Goodwill and purchased intangible assets — net | — | 27,423 | 12,347 | 146,934 | — | 186,704 | |||||||||||||||||
Total other assets | 130,809 | 370,350 | 213,299 | 119,048 | (593,894 | ) | 239,612 | ||||||||||||||||
Property, plant and equipment — net | — | 67,836 | 278 | 197,548 | — | 265,662 | |||||||||||||||||
Total assets | $ | 130,809 | $ | 576,203 | $ | 245,107 | $ | 492,860 | $ | (614,989 | ) | $ | 829,990 | ||||||||||
Accounts payable | $ | — | $ | 16,086 | $ | 3,404 | $ | 60,130 | $ | — | $ | 79,620 | |||||||||||
Accrued and other current liabilities | — | 50,292 | 26,243 | 27,674 | (21,095 | ) | 83,114 | ||||||||||||||||
Notes payable and long-term debt due within one year | — | 235 | — | 5,156 | — | 5,391 | |||||||||||||||||
Total current liabilities | — | 66,613 | 29,647 | 92,960 | (21,095 | ) | 168,125 | ||||||||||||||||
Long-term debt | — | 404,122 | — | 2,390 | — | 406,512 | |||||||||||||||||
Other long-term liabilities | — | 67,225 | 8,205 | 49,721 | (607 | ) | 124,544 | ||||||||||||||||
Total liabilities | — | 537,960 | 37,852 | 145,071 | (21,702 | ) | 699,181 | ||||||||||||||||
Total shareholders’ equity | 130,809 | 38,243 | 207,255 | 347,789 | (593,287 | ) | 130,809 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 130,809 | $ | 576,203 | $ | 245,107 | $ | 492,860 | $ | (614,989 | ) | $ | 829,990 |
Three months ended March 31, 2014 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | (3,384 | ) | $ | (3,384 | ) | $ | 1,023 | $ | 358 | $ | 2,003 | $ | (3,384 | ) | ||||||||
Depreciation and amortization | — | 3,199 | 11 | 7,466 | — | 10,676 | |||||||||||||||||
Other operating activities | 3,384 | (15,119 | ) | (1,056 | ) | (4,867 | ) | (2,003 | ) | (19,661 | ) | ||||||||||||
Net cash provided by (used in) operating activities | — | (15,304 | ) | (22 | ) | 2,957 | — | (12,369 | ) | ||||||||||||||
Additions to property, plant & equipment | — | (3,098 | ) | — | (6,803 | ) | — | (9,901 | ) | ||||||||||||||
Other investing activities | — | 4,346 | — | 4 | — | 4,350 | |||||||||||||||||
Net cash (used in) investing activities | — | 1,248 | — | (6,799 | ) | — | (5,551 | ) | |||||||||||||||
Net borrowings (repayments) | — | (50 | ) | — | — | — | (50 | ) | |||||||||||||||
Other financing activities | — | 336 | — | — | — | 336 | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 286 | — | — | — | 286 | |||||||||||||||||
Exchange effect on cash | — | — | — | (101 | ) | — | (101 | ) | |||||||||||||||
Increase (decrease) in cash | — | (13,770 | ) | (22 | ) | (3,943 | ) | — | (17,735 | ) | |||||||||||||
Cash at beginning of period | — | 22,070 | 62 | 20,076 | — | 42,208 | |||||||||||||||||
Cash at end of period | $ | — | $ | 8,300 | $ | 40 | $ | 16,133 | $ | — | $ | 24,473 |
Three months ended March 31, 2013 | |||||||||||||||||||||||
(dollars in thousands) | Libbey Inc. (Parent) | Libbey Glass (Issuer) | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net income (loss) | $ | 1,989 | $ | 1,989 | $ | 1,554 | $ | 979 | $ | (4,522 | ) | $ | 1,989 | ||||||||||
Depreciation and amortization | — | 4,114 | 17 | 6,643 | — | 10,774 | |||||||||||||||||
Other operating activities | (1,989 | ) | (19,007 | ) | (1,548 | ) | (7,421 | ) | 4,522 | (25,443 | ) | ||||||||||||
Net cash provided by (used in) operating activities | — | (12,904 | ) | 23 | 201 | — | (12,680 | ) | |||||||||||||||
Additions to property, plant & equipment | — | (2,004 | ) | — | (6,878 | ) | — | (8,882 | ) | ||||||||||||||
Other investing activities | — | 1 | — | 3 | — | 4 | |||||||||||||||||
Net cash (used in) investing activities | — | (2,003 | ) | — | (6,875 | ) | — | (8,878 | ) | ||||||||||||||
Net borrowings (repayments) | — | (54 | ) | — | (5 | ) | — | (59 | ) | ||||||||||||||
Other financing activities | — | 537 | — | — | — | 537 | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 483 | — | (5 | ) | — | 478 | ||||||||||||||||
Exchange effect on cash | — | — | — | (179 | ) | — | (179 | ) | |||||||||||||||
Increase (decrease) in cash | — | (14,424 | ) | 23 | (6,858 | ) | — | (21,259 | ) | ||||||||||||||
Cash at beginning of period | — | 43,558 | 70 | 23,580 | — | 67,208 | |||||||||||||||||
Cash at end of period | $ | — | $ | 29,134 | $ | 93 | $ | 16,722 | $ | — | $ | 45,949 |
|
Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Net Sales: | |||||||
Americas | $ | 121,925 | $ | 123,535 | |||
EMEA | 34,398 | 34,242 | |||||
U.S. Sourcing | 17,734 | 17,484 | |||||
Other | 7,524 | 8,215 | |||||
Consolidated | $ | 181,581 | $ | 183,476 | |||
Segment EBIT: | |||||||
Americas | $ | 14,989 | $ | 18,802 | |||
EMEA | 253 | (1,362 | ) | ||||
U.S. Sourcing | 868 | 1,541 | |||||
Other | 445 | 2,285 | |||||
Total Segment EBIT | $ | 16,555 | $ | 21,266 | |||
Reconciliation of Segment EBIT to Net Income (Loss): | |||||||
Segment EBIT | $ | 16,555 | $ | 21,266 | |||
Retained corporate costs | (7,125 | ) | (5,300 | ) | |||
Furnace malfunction | (5,306 | ) | — | ||||
Restructuring charges (note 5) | (985 | ) | (4,880 | ) | |||
Interest expense | (7,701 | ) | (8,435 | ) | |||
Income taxes | 1,178 | (662 | ) | ||||
Net income (loss) | $ | (3,384 | ) | $ | 1,989 | ||
Depreciation & Amortization: | |||||||
Americas | $ | 5,959 | $ | 6,528 | |||
EMEA | 2,626 | 2,486 | |||||
U.S. Sourcing | 7 | 9 | |||||
Other | 1,644 | 1,374 | |||||
Corporate | 440 | 377 | |||||
Consolidated | $ | 10,676 | $ | 10,774 | |||
Capital Expenditures: | |||||||
Americas | $ | 7,132 | $ | 6,875 | |||
EMEA | 1,561 | 1,296 | |||||
U.S. Sourcing | — | — | |||||
Other | 572 | 335 | |||||
Corporate | 636 | 376 | |||||
Consolidated | $ | 9,901 | $ | 8,882 |
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Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||
Asset / (Liability) (dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Commodity futures natural gas contracts | $ | — | $ | 578 | $ | — | $ | 578 | $ | — | $ | 413 | $ | — | $ | 413 | |||||||||||||||
Currency contracts | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Interest rate agreement | — | (1,644 | ) | — | (1,644 | ) | — | (2,073 | ) | — | (2,073 | ) | |||||||||||||||||||
Net derivative asset (liability) | $ | — | $ | (1,066 | ) | $ | — | $ | (1,066 | ) | $ | — | $ | (1,660 | ) | $ | — | $ | (1,660 | ) |
Asset / (Liability) (dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||
Prepaid and other current assets | $ | 573 | $ | 394 | ||||
Other assets | 5 | 19 | ||||||
Derivative liability | (1,644 | ) | — | |||||
Other long-term liabilities | — | (2,073 | ) | |||||
Net derivative asset (liability) | $ | (1,066 | ) | $ | (1,660 | ) |
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Three months ended March 31, | |||||||
(dollars in thousands) | 2014 | 2013 | |||||
Gain (loss) on currency translation | $ | (275 | ) | $ | (283 | ) | |
Hedge ineffectiveness | 70 | (222 | ) | ||||
Other non-operating income (expense) | (117 | ) | 70 | ||||
Other income (expense) | $ | (322 | ) | $ | (435 | ) |
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