Berry Plastics Group, Inc. Reports Third Quarter Fiscal 2014 Results

Berry Plastics Group Inc. has reported results for its third quarter fiscal 2014, referred to in the following as the June 2014 quarter:

Increased net sales by 6 percent to $1,298 million for the June 2014 quarter compared to $1,221 million in the June 2013 quarter
Achieved Operating EBITDA of $212 million for the June 2014 quarter and LTM Adjusted EBITDA of $835 million
Increased cash from operating activities for the three fiscal quarters ended June 2014 to $370 million from $297 million in the prior year three fiscal quarters
LTM Adjusted free cash flow of $291 million, representing a 10 percent adjusted free cash flow yield
Recorded net income of $15 million ($0.12 per diluted share) for the June 2014 quarter versus $40 million ($0.33 per diluted share) for the June 2013 quarter
Adjusted net income per diluted share of $0.51 for the June 2014 quarter compared to $0.35 in the June 2013 quarter

"In the June 2014 quarter we reported record sales for any quarterly period in the company’s history, in the face of weak packaged food demand," says Jon Rich, chairman and CEO of Berry Plastics. "We also matched our Operating EBITDA record for any quarterly period of $212 million."

June 2014 Quarter Results

For the June 2014 quarter, the company’s net sales increased by 6 percent to $1,298 million from $1,221 million in the June 2013 quarter. The year-over-year increase was primarily attributed to increased selling prices due to higher material costs along with sales from businesses we acquired in the last 12 months.

June 2014 Fiscal YTD Results

For June 2014 Fiscal YTD, the company’s net sales increased by 6 percent to $3,648 million as compared to $3,443 million for the same period of fiscal 2013. The increase was primarily attributed to increased selling prices due to higher material costs along with sales from businesses we acquired in the last 12 months.

Capital Structure and Adjusted Free Cash Flow

At the close of the June 2014 quarter, the ratio of net debt of $3,910 million to LTM Adjusted EBITDA of $835 million was 4.7x. The company’s LTM adjusted free cash flow was $291 million.