EveryWare Global Reports Fourth Quarter Revenue Decline

Following its Chapter 11 filing and restructuring plans, EveryWare Global, Inc. has announced financial results for the three months ended December 31, 2014.

EveryWare reported that its net revenue for the fourth quarter 2014 was $96.1 million, a decrease of $19.1 million or 16.6% from the prior year period. Its gross margin as a percentage of total revenue increased to 17.3% compared to 12.1% for the prior year period. Operating expenses decreased $4.8 million or 25% to $14.4 million. EBITDA from continuing operations increased $8.1 million from the prior year period.
 Cash from operating activities decreased $32.8 million from the prior year period.

Sam Solomon, CEO of EveryWare stated, “Our revenue decline is a lingering consequence of earlier operational challenges. We improved customer service in the fourth quarter and expect service levels will continue to rise. Twelve months of operational improvements enabled us to achieve positive EBITDA for the first time in a year while providing a stronger base to build upon.”

Solomon continued, “As previously reported, we reached an important restructuring agreement with our lenders. That process will eliminate our current term loan debt and reduce cash interest going forward. Our lenders have further provided $40 million worth of financing through our prepackaged bankruptcy to ensure our business continues to perform in the short term and provides a good starting point for long term success.”

EveryWare attributed its decrease in revenue to declines in its consumer, specialty, and food service segments of $9 million, $6.9 million, and $2.2 million, respectively. The company reported that “the sales decline was the result of moving away from lower margin products, missed seasonal promotional sales opportunities, challenging order fulfillment rates and customer uncertainty regarding the company stemming from lender negotiations which occurred in the second and early third quarters of this year.”

Gross margin as a percentage of total revenue was 17.3% for the three months ended December 31, 2014, as compared to 12.1% for the three months ended December 31, 2013. The net increase in gross margin rate as compared to the prior year was primarily due to the impact of the unfavorable inventory adjustment recorded in the prior year period offset by lower factory overhead absorption in the three months ended December 31, 2014 resulting from reduced glass production levels, EveryWare reported.

Total operating expenses for the three months ended December 31, 2014 decreased $4.8 million, or 25%, to $14.4 million. The decrease was primarily the result of lower consulting and legal fees related to cost savings and restructuring initiatives and lower selling and incentive related costs, the company reported.

EBITDA from continuing operations for the three months ended December 31, 2014 increased to $7 million. The year over year increase of $8.1 million was primarily due to lower consulting and legal fees related to cost savings and restructuring initiatives, lower selling and incentive related costs and the unfavorable inventory adjustment recorded in the prior year period, partially offset by lower factory overhead absorption resulting from reduced glass production levels.