Total quarterly revenue was down 1 percent to $99.8 million. Much of the revenue declines occurred in the food-service segment and consumer segment, and because of EveryWare’s decision to temporarily close its two U.S. manufacturing plants to preserve cash and right-size inventory. Reduced order fulfillment rates and the company’s decision not to pursue lower margin business also played a part in the revenue downturn. 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.
Sam Solomon, Chief Executive Officer 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.”
In a conference call for financial analysts, CEO Solomon responded to one analyst’s question about the decline in Everyware Global’s foodservice business and customer’s concern for the company’s liquidity:
“I think from my customers perspective, we are having a number of conversion with them to some sort of ease their concerns about our financial position, as we have those conversations I can tell you they are going extremely well, customer are returning to normal order levels the only challenge that we have is on the supply side, during the same period some of our manufactures got a bit concerned in delayed shipment so us. So we do have a couple of bubbles in the supply chain. That said, we were working through those and expect those to be resolved shortly.”
For more on Everyware Global’s financial results, go here:
http://investors.everywareglobal.com/releases.cfm
Analysts call transcript provided by Seeking Alpha. For the entire transcript go here:
http://seekingalpha.com/
To learnmore about EveryWare Global/Oneida foodservice line of tabletop products, go here:
http://foodservice.oneida.com/
