<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark one)
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended March 31, 2000
or
( ) Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Libbey Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-12084 34-1559357
- --------------------------------- --------------------- -------------------
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation or organization) Identification No.)
300 Madison Avenue, Toledo, Ohio 43604
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
419-325-2100
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
Common Stock, $.01 par value - 15,222,445 shares at May 4, 2000
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The Condensed Consolidated Financial Statements presented herein are unaudited
but, in the opinion of management, reflect all adjustments necessary to present
fairly such information for the periods and at the dates indicated. Since the
following condensed unaudited financial statements have been prepared in
accordance with Article 10 of Regulation S-X, they do not contain all
information and footnotes normally contained in annual consolidated financial
statements; accordingly, they should be read in conjunction with the
Consolidated Financial Statements and notes thereto appearing in the
Registrant's Annual Report on Form 10-K for the year ended December 31, 1999.
The interim results of operations are not necessarily indicative of results for
the entire year.
2
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LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per-share amounts)
(unaudited)
Three months ended March 31,
Revenues: 2000 1999
---- ----
Net sales $ 96,761 $ 95,280
Royalties and net technical assistance income 633 765
-------- --------
Total revenues 97,394 96,045
Costs and expenses:
Cost of sales 69,147 71,344
Selling, general and administrative expenses 15,369 13,468
Capacity realignment charge -- 2,227
-------- --------
84,516 87,039
-------- --------
Income from operations 12,878 9,006
Other income (expense):
Equity earnings 571 476
Other - net (293) (8)
-------- --------
278 468
-------- --------
Earnings before interest and income taxes 13,156 9,474
Interest expense - net (3,035) (3,101)
-------- --------
Income before income taxes 10,121 6,373
Provision for income taxes 3,719 2,390
-------- --------
Net income $ 6,402 $ 3,983
======== ========
Net income per share:
Basic $ 0.42 $ 0.24
======== ========
Diluted $ 0.41 $ 0.24
======== ========
Dividends per share $ 0.075 $ 0.075
======== ========
See accompanying notes.
3
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LIBBEY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2000 1999
---- ----
(unaudited) (Note)
ASSETS
Current assets:
Cash $ 2,901 $ 3,918
Accounts receivable:
Trade, less allowances of $5,124
and $3,869 49,302 59,492
Other 3,852 2,837
-------- --------
53,154 62,329
Inventories:
Finished goods 90,333 80,547
Work in process 5,874 5,829
Raw materials 2,753 2,844
Operating supplies 619 669
-------- --------
99,579 89,889
Prepaid expenses and deferred taxes 8,269 8,028
-------- --------
Total current assets 163,903 164,164
Other assets:
Repair parts inventories 5,665 5,684
Intangibles, net of accumulated
amortization of $2,723 and $2,647 9,482 9,558
Pension assets 15,944 14,625
Deferred software, net of accumulated
amortization of $6,781 and $6,181 5,320 5,728
Other assets 435 379
Investments 83,469 82,835
Goodwill, net of accumulated
amortization of $15,031 and $14,651 45,948 46,328
-------- --------
166,263 165,137
Property, plant and equipment, at cost 218,684 217,584
Less accumulated depreciation 115,900 112,490
-------- --------
Net property, plant and equipment 102,784 105,094
-------- --------
Total assets $432,950 $434,395
======== ========
Note: The condensed consolidated balance sheet at December 31, 1999 has been
derived from the audited consolidated financial statements at that date but does
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
See accompanying notes.
4
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LIBBEY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2000 1999
---- ----
(unaudited) (Note)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 3,151 $ 8,655
Accounts payable 23,575 29,126
Salaries and wages 9,087 22,804
Capacity realignment reserve 2,683 3,692
Accrued liabilities 28,402 24,777
Income taxes 1,940 5,971
Long-term debt due within one year 20,000 --
--------- ---------
Total current liabilities 88,838 95,025
Long-term debt 170,000 170,000
Deferred taxes 19,236 18,392
Other long-term liabilities 7,645 6,594
Nonpension retirement benefits 51,845 52,541
Shareholders' equity:
Common stock, par value $.01 per share,
50,000,000 shares authorized,
17,767,926 shares issued and outstanding,
including 2,575,800 treasury shares
(17,747,753 shares issued and outstanding
including 2,498,000 treasury shares in 1999) 152 152
Capital in excess of par value 283,128 282,734
Treasury stock (72,137) (70,061)
Deficit (114,736) (119,995)
Accumulated other comprehensive loss (1,021) (987)
--------- ---------
Total shareholders' equity 95,386 91,843
--------- ---------
Total liabilities and shareholders' equity $ 432,950 $ 434,395
========= =========
Note: The condensed consolidated balance sheet at December 31, 1999 has been
derived from the audited consolidated financial statements at that date but does
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
See accompanying notes.
5
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LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
Three months ended March 31,
2000 1999
---- ----
Operating activities
Net income $ 6,402 $ 3,983
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation 3,836 3,976
Amortization 1,056 962
Other non-cash charges 389 (2,122)
Equity earnings (571) (476)
Capacity realignment charge -- 2,227
Net change in components of working
capital and other assets (21,789) (8,028)
-------- --------
Net cash provided by (used in) operating
activities (10,677) 522
Investing activities
Additions to property, plant and equipment (1,943) (1,470)
Dividends received from equity investment -- 517
Other (63) --
-------- --------
Net cash used in investing activities (2,006) (953)
Financing activities
Net bank credit facility activity 20,000 29,600
Other net borrowings (5,504) (14,195)
Stock options exercised 394 216
Treasury shares purchased (2,076) (15,463)
Dividends (1,142) (1,221)
-------- --------
Net cash provided by (used in) financing
activities 11,672 (1,063)
Effect of exchange rate fluctuations on cash (6) 39
-------- --------
Decrease in cash (1,017) (1,455)
Cash at beginning of year 3,918 3,312
-------- --------
Cash at end of period $ 2,901 $ 1,857
======== ========
See accompanying notes.
6
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LIBBEY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Dollars in thousands, except per share data
(unaudited)
1. LONG-TERM DEBT
The Company and its Canadian subsidiary have an unsecured agreement ("Bank
Credit Agreement" or "Agreement") with a group of banks which provides for a
Revolving Credit and Swing Line Facility ("Facility") permitting borrowings up
to an aggregate total of $380 million, maturing May 1, 2002. Swing Line
borrowings are limited to $25 million with interest calculated at the prime rate
minus the Commitment Fee Percentage. Revolving Credit borrowings bear interest
at the Company's option at either the prime rate minus the Commitment Fee
Percentage, or a Eurodollar rate plus the Applicable Eurodollar Margin. The
Commitment Fee Percentage and Applicable Eurodollar Margin will vary depending
on the Company's performance against certain financial ratios. The Commitment
Fee Percentage and the Applicable Eurodollar Margin were 0.125% and 0.225%,
respectively, at March 31, 2000. The Company may also elect to borrow under a
Negotiated Rate Loan alternative of the Revolving Credit and Swing Line Facility
at floating rates of interest, up to a maximum of $190 million. The Revolving
Credit and Swing Line Facility also provides for the issuance of $35 million of
letters of credit, with such usage applied against the $380 million limit. At
March 31, 2000 the Company had $5.2 million in letters of credit outstanding
under the Facility.
The Company has entered into interest rate protection agreements ("Rate
Agreements") with respect to $75 million of debt under its Bank Credit Agreement
as a means to manage its exposure to fluctuating interest rates. The Rate
Agreements effectively convert this portion of the Company's Bank Credit
Agreement borrowings from variable rate debt to a fixed rate basis, thus
reducing the impact of interest rate changes on future income. The average
interest rate for the Company's borrowings related to the Rate Agreements at
March 31, 2000 was 6.60% for an average remaining period of 2.1 years. The
remaining debt not covered by the Rate Agreements has fluctuating interest rates
with a weighted average rate of 6.36% at March 31, 2000.
The interest rate differential to be received or paid under the Rate Agreements
is being recognized over the life of the Rate Agreements as an adjustment to
interest expense. If the counterparts to these Rate Agreements fail to perform,
the Company would no longer be protected from interest rate fluctuations by
these Rate Agreements. However, the Company does not anticipate nonperformance
by the counterparts.
The Company must pay a commitment fee ("Commitment Fee Percentage") on the total
credit provided under the Bank Credit Agreement. No
7
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compensating balances are required by the Agreement. The Agreement requires the
maintenance of certain financial ratios, restricts the incurrence of
indebtedness and other contingent financial obligations, and restricts certain
types of business activities and investments.
The Company guarantees $30.0 million of Vitrocrisa Holdings' debt as of
March 31, 2000.
2. SIGNIFICANT SUBSIDIARY
Summarized combined financial information for equity investments, which includes
the 49% ownership in Vitrocrisa, which manufactures, markets and sells glass
tableware (e.g. beverageware, plates, bowls, serveware and accessories) and
industrial glassware (e.g. coffee pots, blender jars, meter covers, glass covers
for cooking ware and lighting fixtures sold to original equipment manufacturers)
and the 49% ownership in Crisa Industrial, L.L.C., which distributes industrial
glassware in the U.S. and Canada for Vitrocrisa, for 2000 and 1999 is as
follows:
March 31, December 31,
2000 1999
---- ----
Current assets $ 77,967 $ 77,462
Non-current assets 132,322 129,915
- -----------------------------------------------------------------------------
Total assets 210,289 207,377
Current liabilities 73,776 93,431
Other liabilities and deferred items 117,131 96,389
- -----------------------------------------------------------------------------
Total liabilities and deferred items 190,907 189,820
- -----------------------------------------------------------------------------
Net assets $ 19,382 $ 17,557
=============================================================================
8
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For three months ended
March 31,
--------------------------
2000 1999
---- ----
Net sales $ 45,627 $ 38,746
Cost of sales 32,653 27,335
--------------------------
Gross profit 12,974 11,411
Operating expenses 5,258 4,503
--------------------------
Income from operations 7,716 6,908
Other income (loss) 371 (465)
--------------------------
Earnings before finance costs and taxes 8,087 6,443
Interest expense 2,690 3,146
Translation gain (loss) (705) (370)
--------------------------
Earnings before income taxes and profit sharing 4,692 2,927
- -------------------------------------------------------------------------------
Income taxes and profit sharing 2,661 1,091
- -------------------------------------------------------------------------------
Net income $ 2,031 $ 1,836
===============================================================================
3. CASH FLOW INFORMATION
Interest paid in cash aggregated $2,894 and $2,951 for the first three months of
2000 and 1999, respectively. Income taxes paid in cash aggregated $6,929 and
$963 for the first three months of 2000 and 1999, respectively.
4. NET INCOME PER SHARE OF COMMON STOCK
Basic net income per share of common stock is computed using the weighted
average number of shares of common stock outstanding. Diluted net income per
share of common stock is computed using the weighted average number of shares of
common stock outstanding and includes common share equivalents.
9
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The following table sets forth the computation of basic and diluted earnings per
share (dollars in thousands, except per-share amounts):
Quarter ended March 31, 2000 1999
- ---------------------------------------------------- ---- ----
Numerator for basic and diluted earnings per share--
net income which is available to common shareholders $ 6,402 $ 3,983
Denominator for basic earnings per share--
weighted-average shares outstanding 15,241,738 16,401,293
Effect of dilutive securities--
employee stock options 282,628 325,055
----------- ----------
Denominator for diluted earnings per share--
adjusted weighted-average shares and assumed
conversions 15,524,366 16,726,348
Basic earnings per share $ 0.42 $ 0.24
Diluted earnings per share $ 0.41 $ 0.24
5. COMPREHENSIVE INCOME
The Company's components of comprehensive income are net income and foreign
currency translation adjustments. During the first quarter of 2000 and 1999,
total comprehensive income amounted to $6,368 and $4,091 respectively.
6. NEW ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
"Accounting for Derivative Instruments and Hedging Activities" (Statement 133)
which establishes new procedures for accounting for derivatives and hedging
activities and supersedes and amends a number of existing standards. Statement
133 is effective for fiscal years beginning after June 15, 2000, and the Company
has not determined its impact.
7. CAPACITY REALIGNMENT CHARGE
On December 31, 1998 the Company with the approval of the Board of Directors
adopted a formal, written and specific plan to realign the production capacity
of the Company. The primary thrust of the plan was the closing of the
Wallaceburg, Ontario, manufacturing and distribution facility, the realignment
of its production and distribution activities to other facilities and the
Company's Mexican
10
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joint venture partner and the exiting of the glass bottle business serviced out
of Wallaceburg. The Company recorded a capacity realignment charge of
approximately $20.0 million in the fourth quarter of 1998, which included $10.0
million for severance and related employee costs, $7.6 million for write-off of
fixed assets (primarily equipment) and $2.4 million for supply inventories,
repair parts and other costs. An additional charge was recorded in the first
quarter 1999 of $2.2 million, which included $1.5 million for enhanced severance
and related employee costs, $0.3 million for write-off of fixed assets
(primarily equipment) and $0.4 million for write-off of inventories and other
costs.
The Wallaceburg facility ceased production in May 1999, and the limited
remaining warehouse operations will terminate in 2000. The fixed assets, supply
inventories and repair parts not being transferred have been written down to a
nominal amount. The Wallaceburg property is presently held for sale; however, if
a buyer is not located, it will be abandoned. The Company terminated the
employment of virtually all of its 560 salary and hourly employees and included
severance and related employee costs in its capacity realignment charge at the
time when such severance benefits were disclosed to the employees. These
severance and related employee costs were paid primarily when production ceased.
During the fourth quarter of 1999, the Company assessed the capacity realignment
reserve by activity and reduced it by approximately $1.2 million, primarily for
a reduction in severance and related costs. This resulted in a net provision for
1999 of approximately $1.0 million. The majority of the capacity realignment
reserve balance at December 31, 1999, was for the demolition of glass furnaces
and the related costs to ready the plant facility for sale or abandonment and
the remaining disposition of certain fixed assets and inventories.
11
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The following table sets forth the details and activity of the various
components of the capacity realignment reserve for the first quarter 2000.
<TABLE>
<CAPTION>
Balance as of Write-off of Effect of Balance as of
December 31, Assets to Cash Translation March 31,
Activity 1999 Reserve Payments Adjustments 2000
- -------- ---- ------- -------- ----------- ----
<S> <C> <C> <C> <C> <C>
Severance and related
employee cost $ 275 $ 20 $ 1 $ 254
Asset write-downs:
Fixed assets
2,992 435 503 11 2,043
Inventories and other 425 -- 39 -- 386
- -------------------------------------------------------------------------------------------------------
Total $ 3,692 $435 $562 $ 12 $2,683
=======================================================================================================
</TABLE>
12
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS - FIRST QUARTER 2000 COMPARED WITH FIRST QUARTER 1999
Three months ended
March 31,
-------------------
(dollars in thousands)
2000 1999
------- -------
Net sales $96,761 $95,280
Gross profit $27,614 $23,936
As a percentage of sales 28.5% 25.1%
Income from operations excluding capacity
realignment charge $12,878 $11,233
As a percentage of sales 13.3% 11.8%
Income from operations $12,878 $ 9,006
As a percentage of sales 13.3% 9.5%
Earnings before interest and income taxes $13,156 $ 9,474
As a percentage of sales 13.6% 9.9%
Net income $ 6,402 $ 3,983
As a percentage of sales 6.6% 4.2%
Net sales for the first quarter of 2000 of $96.8 million increased 1.6% from net
sales of $95.3 million reported in the comparable period in 1999. Growth in
dinnerware, flatware and glassware sales to foodservice customers and glassware
sales to industrial customers were the major contributors, offset by lower
retail sales. The Company's decision to exit low margin bottleware and certain
low margin retail business, which totaled approximately $5 million in the first
quarter last year, limited sales growth but resulted in improved profit margins.
Export sales, which include sales to Libbey's customers in Canada, decreased
11.8% to $11.7 million from $13.3 million in the year-ago period. The decrease
was the result of the decision to exit the production of bottleware in Canada,
which reduced sales by $1.4 million.
Gross profit increased 15.4% to $27.6 million in the first quarter of 2000
compared to $23.9 million in the first quarter of 1999, and increased as a
percentage of sales to 28.5% from 25.1%.
Income from operations increased 43.0% to $12.9 million from $9.0 million in the
year-ago period. The reasons for the increase were improved sales mix, the
continued benefits of lower operating costs associated with capacity realignment
efforts and a charge in last
13
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year's first quarter of $2.2 million related to the Company's realignment of its
glass tableware production. Partially offsetting these gains were increases in
sales commissions resulting from higher foodservice sales, higher research and
development expenses and an increase in the provision for bad debts. Excluding
the capacity realignment charge taken in 1999, income from operations increased
14.6%.
Earnings before interest and income taxes (EBIT) increased 38.9% to $13.2
million from $9.5 million in the first quarter last year. Excluding the capacity
realignment charge, EBIT was up 12.4%. Equity earnings increased 20.0% to $0.6
from $0.5 million.
Net income increased 60.7% to $6.4 million or 41 cents per diluted share from
$4.0 million or 24 cents per diluted share in the year-ago period due to items
discussed above as well as a decrease in the Company's effective tax rate from
37.5% in 1999 to 36.75% in 2000. The reduction in the Company's effective tax
rate is primarily attributable to lower state income taxes. In addition, diluted
shares outstanding declined to 15.5 million from 16.7 million in the year-ago
period primarily due to the Company's share repurchase programs. As of March 31,
2000, the Company has repurchased 2.6 million shares.
CAPITAL RESOURCES AND LIQUIDITY
The Company had total debt of $193.2 million at March 31, 2000, compared to
$206.6 million at December 31, 1999. Inventories increased $2.3 million compared
to the year-ago period. Seasonal increases in receivables and inventory through
March 31, 2000 along with reduced liabilities were responsible for the increased
debt during the quarter of $14.5 million. During the quarter, the Company
purchased 77,800 shares pursuant to its share repurchase plan for $2.1 million.
Since mid 1998, the Company has repurchased 2,575,800 shares for $72.1 million.
Board authorization remains for the purchase of an additional 1,049,200 shares.
In addition, Libbey did not receive a dividend from its investment in Crisa
Industrial in the first quarter 2000 compared to a dividend from Crisa
Industrial of $0.5 million in first quarter 1999. The Company had additional
debt capacity at March 31, 2000 under the Bank Credit Agreement of $184.8
million. Of Libbey's outstanding indebtedness, $118.2 million is subject to
fluctuating interest rates at March 31, 2000. A change of one percentage point
in such rates would result in a change in interest expense of approximately $1.2
million on an annual basis as of March 31, 2000.
The Company is not aware of any trends, demands, commitments, or uncertainties
which will result or which are reasonably likely to result in a material change
in Libbey's liquidity. The Company believes that its cash from operations and
available borrowings under
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the Bank Credit Agreement will be sufficient to fund its operating requirements,
capital expenditures and all other obligations (including debt service and
dividends) throughout the remaining term of the Bank Credit Agreement.
In addition, the Company anticipates refinancing the Bank Credit Agreement at or
prior to the maturity date of May 1, 2002 to meet the Company's longer term
funding requirements.
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risks due to changes in currency values,
although the majority of the Company's revenues and expenses are denominated in
the U.S. dollar. The currency market risks include devaluations and other major
currency fluctuations relative to the U.S. dollar that could reduce the cost
competitiveness of the Company's products compared to foreign competition and
the effect of exchange rate changes to the value of the Mexican peso relative to
the U.S. dollar and the impact of those changes on the earnings and cash flow of
the Company's joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP.
The Company is exposed to market risks associated with changes in interest rates
in the U.S. However, the Company has entered into Interest Rate Protection
Agreements (Rate Agreements) with respect to $75.0 million of debt as a means to
manage its exposure to fluctuating interest rates. The Rate Agreements
effectively convert this portion of the Company's borrowings from variable rate
debt to a fixed-rate basis, thus reducing the impact of interest rate changes on
future income. The average interest rate for the Company's borrowings related to
the Rate Agreements at March 31, 2000, was 6.60% for an average remaining period
of 2.1 years. Total remaining debt not covered by the Rate Agreements has
fluctuating interest rates with a weighted average rate of 6.36% at March 31,
2000. The Company had $118.2 million of debt subject to fluctuating interest
rates at March 31, 2000. A change of one percentage point in such rates would
result in a change in interest expense of approximately $1.2 million on an
annual basis.
The interest rate differential to be received or paid under the Rate Agreements
is being recognized over the life of the Rate Agreements as an adjustment to
interest expense. If the counterparts to these Rate Agreements fail to perform,
the Company would no longer be protected from interest rate fluctuations by
these Rate Agreements. However, the Company does not anticipate nonperformance
by the counterparts. At December 31, 1999, the carrying value of the long-term
debt approximates its fair value based on the Company's current incremental
borrowing rates. The fair market value for the Company's Interest Rate
Protection Agreements at December 31, 1999, was $0.9 million.
15
<PAGE> 16
The fair value of long-term debt is estimated based on borrowing rates currently
available to the Company for loans with similar terms and maturities. The fair
value of the Company's Rate Agreements is based on quotes from brokers for
comparable contracts. The Company does not expect to cancel these agreements and
expects them to expire as originally contracted.
OTHER INFORMATION
This document and supporting schedules contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Such statements
only reflect the Company's best assessment at this time, and are indicated by
words or phrases such as goal, expects, believes, will, estimates, anticipates
or similar phrases.
Investors are cautioned that forward-looking statements involve risks and
uncertainty, that actual results may differ materially from such statements, and
that investors should not place undue reliance on such statements.
Important factors potentially affecting performance include devaluations and
other major currency fluctuations relative to the U.S. dollar that could reduce
the cost-competitiveness of the Company's products compared to foreign
competition; the effect of high inflation in Mexico and exchange rate changes to
the value of the Mexican peso and the earnings and cash flow of the Company's
joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the inability to
achieve savings and profit improvements at targeted levels in the Company's
glassware sales from its capacity realignment efforts and re-engineering
programs, or within the intended time periods; inability to achieve targeted
manufacturing efficiencies at Syracuse China and cost synergies between World
Tableware and the Company's other operations; significant increases in interest
rates that increase the Company's borrowing costs and per unit increases in the
costs for natural gas, corrugated packaging and other purchased materials;
protracted work stoppages related to collective bargaining agreements; increased
competition from foreign suppliers endeavoring to sell glass tableware in the
United States; major slowdowns in the retail, travel or entertainment industries
in the United States or Canada; whether the Company completes any significant
acquisition, and whether such acquisitions can operate profitably.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a.) Exhibits
16
<PAGE> 17
Exhibit
Number Description
- ------ -----------
27 Other Financial Information
(b.) A form 8-K was filed during the first quarter, dated February 2,
2000, with respect to an announcement that the Board of Directors
authorized the repurchase of up to 1,000,000 shares of the
Company's common stock in open market and negotiated purchases in
addition to announcing the Company's fourth quarter 1999 operating
results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LIBBEY INC.
Date May 15, 2000 By /s/ Kenneth G. Wilkes
------------ ------------------------------------
Kenneth G. Wilkes,
Vice President, Chief Financial Officer
(Principal Accounting Officer)
17
<PAGE> 18
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
- ------- -----------
27 Other Financial Information
18
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 2,901
<SECURITIES> 0
<RECEIVABLES> 53,154
<ALLOWANCES> 0
<INVENTORY> 99,579
<CURRENT-ASSETS> 163,903
<PP&E> 218,684
<DEPRECIATION> 115,900
<TOTAL-ASSETS> 432,950
<CURRENT-LIABILITIES> 88,838
<BONDS> 0
0
0
<COMMON> 152
<OTHER-SE> 95,234
<TOTAL-LIABILITY-AND-EQUITY> 432,950
<SALES> 96,761
<TOTAL-REVENUES> 97,394
<CGS> 69,147
<TOTAL-COSTS> 84,516
<OTHER-EXPENSES> (278)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,035
<INCOME-PRETAX> 10,121
<INCOME-TAX> 3,719
<INCOME-CONTINUING> 6,402
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,402
<EPS-BASIC> 0.42
<EPS-DILUTED> 0.41
</TABLE>
