UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 27, 1998 (January 26,
1998)
SWEETHEART HOLDINGS INC.*
(Exact name of registrant as specified in its charter)
Commission file number 33-64814
Delaware 06-1281287
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10100 Reisterstown Road, Owings Mills, 21117
Maryland (Zip Code)
(Address of principal executive office)
Registrant's telephone number, including area code: 410/363-1111
*The Registrant is the guarantor of the 9 5/8% Senior Secured Notes due 2000 and
the 10 1/2% Senior Subordinated Notes due 2003 (collectively, the "Notes") of
Sweetheart Cup Company Inc., a wholly owned subsidiary of the Registrant.
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ITEM 5 - OTHER EVENTS
Baltimore, MD - January 26, 1998 -- Sweetheart Holdings Inc. today announced
financial results for the first quarter ended December 31, 1997.
Net sales for the first fiscal quarter were $202 million, equal to prior year.
Volume gains were achieved across most product categories, offset by unfavorable
price comparisons caused by the general price erosion experienced during 1997.
Gross margin improved significantly, with a $37.6 million result representing a
$12.4 million or 49% improvement over the prior year. Net earnings also
benefited from a $3.5 million gain on the sale of the bakery division, and the
reported net loss before tax of $12.7 million reflected a $10.4 million or 45%
improvement over the prior year. First quarter EBITDA of $9.7 million compared
favorably to a $2.0 million negative EBITDA in the first quarter of 1997.
Bill McLaughlin, President and Chief Executive Officer commented, "We are very
pleased with the first quarter results. Our earnings historically follow a
seasonal pattern, with the first quarter typically being our slowest period. In
addition, our industry is still experiencing an intense level of competition,
mostly in the form of pricing in the marketplace. Despite this, our earnings
for the quarter show significant improvement year on year. Much of this can be
attributed to the positive impact of cost reduction plans implemented in fiscal
1997, including plant consolidation and manufacturing and operational process
improvements."
Sweetheart Holdings, based in Owings Mills, MD, is a leading manufacturer of
disposable foodservice and food packaging products. Sweetheart, a privately
held company, is the issuer of public debt.
This press release contains certain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. Such forward-
looking statements may involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements of the Company expressed or implied by such forward-looking
statements.
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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 hereunto duly authorized.
SWEETHEART HOLDINGS INC.
By: /s/ William F. Spengler
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William F. Spengler
Vice President, Finance and
Chief Financial Officer
Date: January 27, 1998
