EveryWare Global, Inc. announced today financial results for the three and six months ended June 30, 2014. The company’s second quarter net revenue was $99.8 million, a decrease of $1.1 million or one percent from the prior year period.
As of July 21, 2014, EveryWare restarted two out of three furnaces at its Lancaster, OH, facility and all production lines at its Monaca, PA, facility.
Cash flow from operating activities improved by approximately $30.1 million from the prior year period, primarily due to a reduction in inventory resulting from the company’s efforts to right size manufacturing capacity and tightly manage working capital, according to EveryWare Global.
On July 30, 2014, the company received a new equity investment of $20 million and amended its Term Loan Agreement and ABL Facility.
Sam Solomon, CEO of EveryWare stated, “We resolved our liquidity and covenant issues and right-sized our manufacturing capacity. Now we are focused on operational initiatives and providing excellent service to our customers. Our operational improvements will take time to produce results, but we believe they will deliver earnings and cash flow growth over the long-term. I look forward to the opportunities ahead.”
The decrease in revenue for the first three months is primarily attributable to a $4.9 million decline in foodservice segment revenues and a $2.5 million decline in consumer segment revenues, which was partially offset by an increase in the company’s specialty and international segment revenues of $3.1 million and $3.3 million, respectively. The sales decline was driven by the company’s decision to temporarily close EveryWare’s two U.S. manufacturing facilities to preserve cash and right-size inventory, lower order fulfillment rates and its decision not to pursue lower margin business, according to the company. Furthermore, within our consumer and specialty segments, some of the sales decline was partially offset by an acceleration of other customer orders that were filled with available inventory. The increase in our international segment was driven by our Metalrax acquisition.
EveryWare reported that its EBITDA for the three months ended June 30, 2014, decreased $31.1 million to a loss of $17.3 million. The decrease in EBITDA was primarily due to lower overhead absorption resulting from substantially lower production levels, the margin impact on the decrease in revenues, higher operating expenses resulting from consulting and restructuring activities, and long-lived and intangible asset impairment charges.