EveryWare Q3 Losses Reflect Factory Shutdown

EveryWare Global, Inc. has announced financial results for the three months ended September 30, 2014. Its third quarter net revenue was $81.2 million, a decrease of $19.7 million or 19.6% from the prior year period.
 EveryWare’s operating loss from continuing operations for the third quarter was $9.7 million, a decrease of $12.6 million from the prior year period.

Sam Solomon, CEO of EveryWare, said of the results, “The third-quarter financial results reflect the residual effects from our factory shutdowns and our liquidity issues that we addressed through our restructuring efforts. We are focused on the operational initiatives required to stabilize the business and create long-term value. This includes restoring normal service levels and customer confidence. While operational improvements take time to produce improved results, I believe that we are on the right path.”

EveryWare restarted production at its Lancaster, OH, and Monaca, PA, facilities in mid-July.
 In the quarter, the company completed a comprehensive debt restructuring and a new $20 million equity investment and recorded a $22.2 million loss on debt extinguishment. 
Its inventory was reduced by $23.7 million since year end 2013.

Company officials said the drop in sales was a result in sales declines in its consumer, specialty and foodservice segments. Sales were also negatively impacted by the facility shut down, which resulted in reduced inventory and lower order fulfillment rates.

As previously reported, EveryWare sold the share capital of its Oneida International Limited business to HUK 54 Limited, a subsidiary of Hilco Capital Limited. The sale did not include the right to license the Oneida, Anchor Hocking or Sant’ Andrea brands, which are retained by the company, subject to a four month exclusive European and Middle East license agreement expiring on December 31, 2014.