BWAY Holding Company Confirms Guidance For Fiscal 2010
ATLANTA, Oct. 20 /PRNewswire-FirstCall/ -- BWAY Holding Company, a leading North American supplier of general line rigid containers (the "Company"), today confirmed its prior guidance from May of 2010 with respect to Adjusted EBITDA for the fiscal year ending September 30, 2010 of between $138 million and $142 million. In addition, the Company estimates that cash and cash equivalents at September 30, 2010 were approximately $100 million.
Subsequent to September 30, 2010, the Company utilized $41.5 million in cash to purchase Plastican, Inc. on October 8, 2010. Plastican is an innovator and manufacturer of highly engineered rigid plastic packaging, specializing in 1.0 to 6.5 gallon open-head plastic pails, covers and gaskets. Plastican is headquartered in Leominster, Massachusetts and has additional facilities in Dallas, Texas, Macon, Georgia and Phoenix, Arizona.
Use of Non-GAAP Financial Measures
"Adjusted EBITDA" means net income or loss adjusted for, to the extent deducted or added in calculating net income or loss, as the case may be: interest expense, income tax expense, depreciation and amortization, restructuring expenses, loss on extinguishment of debt, business acquisition costs, IPO-related expenses, adjustment to bad debt expense, stock-based compensation, transaction costs associated with the June 2010 merger transaction with affiliates of Madison Dearborn Partners (the "Merger"), non-cash charges related to inventory carrying value, loss on foreign exchange transactions and certain other items related to the Merger.Adjusted EBITDA is not a measurement recognized under GAAP. Adjusted EBITDA differs from the term "EBITDA" as it is commonly used. We present Adjusted EBITDA because it is a measure management uses to assess financial performance. Adjusted EBITDA is also a metric used in our management short-term incentive plan. We also believe that Adjusted EBITDA provides investors with alternative methods for assessing our operating results in a manner that enables them to more thoroughly evaluate our performance. This non-GAAP measures also provide a baseline for assessing our future results. BWAY management uses these non-GAAP measures for the same purpose. The non-GAAP measures are provided to give investors access to the types of measures that we use in analyzing our results. While providing useful information, Adjusted EBITDA should not be considered in isolation or as a substitute for consolidated statements of operations or cash flows prepared in accordance with GAAP and should not be construed as an indication of our operating performance or as a measure of liquidity. Adjusted EBITDA may have material limitations as performance measures because they exclude items that are necessary elements of our costs and operations. In addition, "Adjusted EBITDA" presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
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