|
Delaware
|
| |
3089
|
| |
20-5234618
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer Identification No.)
|
|
|
Louis C. Spelios
Eliot W. Robinson Bryan Cave LLP One Atlantic Center Fourteenth Floor 1201 West Peachtree Street, NW Atlanta, Georgia 30309-3488 (404) 572-6785 |
| |
Richard J. Grossman
Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, New York 10036-6522 (212) 735-2116 |
| |
Michael S. Ben
Meredith Ervine Honigman Miller Schwartz and Cohn LLP 2290 First National Building 660 Woodward Avenue Detroit, MI 48226-3506 (313) 465-7316 |
|
| Large accelerated filer ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer ☐ | | | Smaller reporting company ☐ | |
CALCULATION OF REGISTRATION FEE
|
| |||||||||||||||||||||
Title of each class of securities to be registered
|
| |
Amount to be
registered(1) |
| |
Proposed
maximum offering price per unit(1) |
| |
Proposed
maximum aggregate offering price |
| |
Amount of
registration fee |
| |||||||||
Common Stock, $0.01 par value per share
|
| | | | 6,907,578 | | | |
Not applicable
|
| | | $ | 303,164,542(2) | | | | | $ | 30,529(3) | | |
|
|
| |
|
|
| | | | | 1 | | | |
| | | | | 9 | | | |
| | | | | 9 | | | |
| | | | | 10 | | | |
| | | | | 10 | | | |
| | | | | 11 | | | |
| | | | | 12 | | | |
| | | | | 13 | | | |
| | | | | 13 | | | |
| | | | | 14 | | | |
| | | | | 14 | | | |
| | | | | 15 | | | |
| | | | | 15 | | | |
| | | | | 15 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 17 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 20 | | | |
| | | | | 21 | | | |
| | | | | 31 | | | |
| | | | | 34 | | | |
| | | | | 40 | | | |
| | | | | 42 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 45 | | | |
| | | | | 45 | | | |
| | | | | 46 | | | |
| | | | | 46 | | | |
| | | | | 52 | | | |
| | | | | 57 | | | |
| | | | | 64 | | | |
| | | | | 65 | | |
| | | | | 66 | | | |
| | | | | 73 | | | |
| | | | | 73 | | | |
| | | | | 75 | | | |
| | | | | 75 | | | |
| | | | | 75 | | | |
| | | | | 76 | | | |
| | | | | 79 | | | |
| | | | | 80 | | | |
| | | | | 83 | | | |
| | | | | 83 | | | |
| | | | | 83 | | | |
| | | | | 85 | | | |
| | | | | 86 | | | |
| | | | | 99 | | | |
| | | | | 100 | | | |
| | | | | 103 | | | |
| | | | | 103 | | | |
| | | | | 103 | | | |
| | | | | 103 | | | |
| | | | | 104 | | | |
| | | | | 105 | | | |
| | | | | 106 | | | |
| | | | | 106 | | | |
| | | | | 106 | | | |
| | | | | 107 | | | |
| | | | | 107 | | | |
| | | | | 110 | | | |
| | | | | 122 | | | |
| | | | | 122 | | | |
| | | | | 123 | | | |
| | | | | 126 | | | |
| | | | | 127 | | | |
| | | | | 127 | | | |
| | | | | 127 | | | |
| | | | | 128 | | | |
| | | | | 128 | | | |
| | | | | 128 | | | |
| | | | | 129 | | | |
| | | | | 130 | | |
| | | | | 130 | |
| | | | | 130 | |
| | | | | 130 | |
| | | | | 131 | |
| | | | | A-1 | |
| | | | | B-1 | |
| | | | | C-1 | |
| | | | | D-1 |
| | |
Three
Quarterly Periods Ended July 2, 2016 |
| |
Three
Quarterly Periods Ended June 27, 2015 |
| |
Fiscal Year Ended
|
| | | | | | |||||||||||||||||||||||||||||||||||||||||||
|
September 26,
2015 |
| |
September 27,
2014 |
| |
September 28,
2013 |
| |
September 29,
2012 |
| |
October 1,
2011 |
| | | | | | |||||||||||||||||||||||||||||||||||||||
| | |
(in millions, except per share amounts)
|
| | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 4,871 | | | | | $ | 3,685 | | | | | $ | 4,881 | | | | | $ | 4,958 | | | | | $ | 4,647 | | | | | $ | 4,766 | | | | | $ | 4,561 | | | | | | | | ||||||||||
Cost of goods sold
|
| | | | 3,885 | | | | | | 3,037 | | | | | | 4,012 | | | | | | 4,190 | | | | | | 3,835 | | | | | | 3,984 | | | | | | 3,908 | | | | | | | | ||||||||||
Selling, general and administrative
|
| | | | 421 | | | | | | 266 | | | | | | 357 | | | | | | 320 | | | | | | 307 | | | | | | 317 | | | | | | 284 | | | | | | | | ||||||||||
Amortization of intangibles
|
| | | | 106 | | | | | | 70 | | | | | | 91 | | | | | | 102 | | | | | | 105 | | | | | | 109 | | | | | | 106 | | | | | | | | ||||||||||
Restructuring and impairment charges(1)
|
| | | | 29 | | | | | | 11 | | | | | | 13 | | | | | | 30 | | | | | | 14 | | | | | | 31 | | | | | | 221 | | | | | | | | ||||||||||
Operating income
|
| | | | 430 | | | | | | 301 | | | | | | 408 | | | | | | 316 | | | | | | 386 | | | | | | 325 | | | | | | 42 | | | | | | | | ||||||||||
Debt extinguishment
|
| | | | 4 | | | | | | 94 | | | | | | 94 | | | | | | 35 | | | | | | 64 | | | | | | — | | | | | | 68 | | | | | | | | ||||||||||
Other expense (income), net
|
| | | | (21) | | | | | | 2 | | | | | | 1 | | | | | | (7) | | | | | | (7) | | | | | | (7) | | | | | | (7) | | | | | | | | ||||||||||
Interest expense, net
|
| | | | 222 | | | | | | 152 | | | | | | 191 | | | | | | 221 | | | | | | 244 | | | | | | 328 | | | | | | 327 | | | | | | | | ||||||||||
Income (loss) before income taxes
|
| | | | 225 | | | | | | 53 | | | | | | 122 | | | | | | 67 | | | | | | 85 | | | | | | 4 | | | | | | (346) | | | | | | | | ||||||||||
Income tax expense (benefit)
|
| | | | 66 | | | | | | 15 | | | | | | 36 | | | | | | 4 | | | | | | 28 | | | | | | 2 | | | | | | (47) | | | | | | | | ||||||||||
Consolidated net income (loss)
|
| | | | 159 | | | | | | 38 | | | | | | 86 | | | | | | 63 | | | | | | 57 | | | | | | 2 | | | | | | (299) | | | | | | | | ||||||||||
Net income attributable to non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | ||||||||||
Net income (loss) attributable to
Berry |
| | | $ | 159 | | | | | $ | 38 | | | | | $ | 86 | | | | | $ | 62 | | | | | $ | 57 | | | | | $ | 2 | | | | | $ | (299) | | | | | | | | ||||||||||
Comprehensive income (loss)
|
| | | $ | 186 | | | | | $ | (6) | | | | | $ | 10 | | | | | $ | 37 | | | | | $ | 86 | | | | | $ | 3 | | | | | $ | (324) | | | | | | | | ||||||||||
Net income (loss) available to Common Stockholders:
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Basic
|
| | | $ | 1.32 | | | | | $ | 0.32 | | | | | $ | 0.72 | | | | | $ | 0.53 | | | | | $ | 0.50 | | | | | $ | 0.02 | | | | | $ | (3.55) | | | | | | | | ||||||||||
Diluted
|
| | | | 1.28 | | | | | | 0.31 | | | | | | 0.70 | | | | | | 0.51 | | | | | | 0.48 | | | | | | 0.02 | | | | | | (3.55) | | | | | | | | ||||||||||
Balance Sheet Data (at period end): | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 236 | | | | | $ | 62 | | | | | $ | 228 | | | | | $ | 129 | | | | | $ | 142 | | | | | $ | 87 | | | | | $ | 42 | | | | | | | | ||||||||||
Property, plant and equipment, net
|
| | | | 2,276 | | | | | | 1,301 | | | | | | 1,294 | | | | | | 1,364 | | | | | | 1,266 | | | | | | 1,216 | | | | | | 1,250 | | | | | | | | ||||||||||
Total assets
|
| | | | 7,805 | | | | | | 5,011 | | | | | | 5,028 | | | | | | 5,252 | | | | | | 5,111 | | | | | | 5,060 | | | | | | 5,161 | | | | | | | | ||||||||||
Long-term debt obligations, less current portion
|
| | | | 5,812 | | | | | | 3,669 | | | | | | 3,648 | | | | | | 3,844 | | | | | | 3,851 | | | | | | 4,385 | | | | | | 4,525 | | | | | | | | ||||||||||
Total liabilities
|
| | | | 7,638 | | | | | | 5,085 | | | | | | 5,081 | | | | | | 5,353 | | | | | | 5,307 | | | | | | 5,512 | | | | | | 5,612 | | | | | | | | ||||||||||
Stockholders’ equity (deficit)
|
| | | | 155 | | | | | | (87) | | | | | | (65) | | | | | | (114) | | | | | | (196) | | | | | | (475) | | | | | | (467) | | | | | | | | ||||||||||
Cash Flow and other Financial Data:
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Net cash from operating activities
|
| | | $ | 567 | | | | | $ | 392 | | | | | $ | 637 | | | | | $ | 530 | | | | | $ | 464 | | | | | $ | 479 | | | | | $ | 327 | | | | | | | | ||||||||||
Net cash from investing activities
|
| | | | (2,518) | | | | | | (106) | | | | | | (165) | | | | | | (422) | | | | | | (245) | | | | | | (255) | | | | | | (523) | | | | | | | | ||||||||||
Net cash from financing activities
|
| | | | 1,959 | | | | | | (348) | | | | | | (365) | | | | | | (119) | | | | | | (164) | | | | | | (179) | | | | | | 90 | | | | | | | |
| | |
For the
Nine Months Ended July 31, 2016 |
| |
For the
Nine Months Ended July 31, 2015 |
| |
For the Years Ended October 31,
|
| |||||||||||||||||||||||||||||||||
|
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data:
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 810,404 | | | | | $ | 863,143 | | | | | $ | 1,141,391 | | | | | $ | 1,192,990 | | | | | $ | 1,143,852 | | | | | $ | 1,152,535 | | | | | $ | 974,792 | | |
Gross profit
|
| | | | 144,012 | | | | | | 130,541 | | | | | | 181,662 | | | | | | 121,905 | | | | | | 154,472 | | | | | | 182,743 | | | | | | 128,722 | | |
Operating income(1)
|
| | | | 56,656 | | | | | | 42,251 | | | | | | 62,718 | | | | | | 9,861 | | | | | | 33,316 | | | | | | 55,648 | | | | | | 25,231 | | |
Interest expense
|
| | | | (13,625) | | | | | | (14,252) | | | | | | (18,790) | | | | | | (19,571) | | | | | | (18,713) | | | | | | (19,077) | | | | | | (19,178) | | |
Other (expense) income, net(2)
|
| | | | (229) | | | | | | 220 | | | | | | 317 | | | | | | 270 | | | | | | 1,360 | | | | | | 829 | | | | | | 8,418 | | |
Income (loss) before (provision) benefit for income taxes
|
| | | | 42,802 | | | | | | 28,219 | | | | | | 44,245 | | | | | | (9,440) | | | | | | 15,963 | | | | | | 37,400 | | | | | | 14,471 | | |
(Provision) benefit for income taxes
|
| | | | (14,858) | | | | | | (10,048) | | | | | | (15,408) | | | | | | 3,934 | | | | | | (5,215) | | | | | | (14,248) | | | | | | (2,083) | | |
Net income (loss)
|
| | | | 27,944 | | | | | | 18,171 | | | | | $ | 28,837 | | | | | $ | (5,506) | | | | | $ | 10,748 | | | | | $ | 23,152 | | | | | $ | 12,388 | | |
Basic Earnings (Loss) per Common Share:
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Net income (loss) per common
share |
| | | $ | 5.47 | | | | | $ | 3.57 | | | | | $ | 5.66 | | | | | $ | (1.03) | | | | | $ | 1.93 | | | | | $ | 4.20 | | | | | $ | 2.10 | | |
Diluted Earnings (Loss) per Common Share:
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Net income (loss) per common
share |
| | | $ | 5.44 | | | | | $ | 3.56 | | | | | $ | 5.64 | | | | | $ | (1.03) | | | | | $ | 1.92 | | | | | $ | 4.16 | | | | | $ | 2.09 | | |
Cash dividends declared per common
share |
| | | | 0.75 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
July 31,
2016 |
| |
July 31,
2015 |
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |
2011
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet Data
(at period end): |
| | | | | | | | |||||||||||||||||||||||||||||||||||
Total assets
|
| | | $ | 469,393 | | | | | $ | 422,100 | | | | | $ | 440,205 | | | | | $ | 446,946 | | | | | $ | 471,563 | | | | | $ | 431,443 | | | | | $ | 415,669 | | |
Total debt (including current portion and
capital leases) |
| | | | 210,822 | | | | | | 213,758 | | | | | | 213,426 | | | | | | 256,331 | | | | | | 242,266 | | | | | | 217,332 | | | | | | 238,515 | | |
Stockholders’ equity
|
| | | | 114,298 | | | | | | 78,766 | | | | | | 89,648 | | | | | | 59,697 | | | | | | 85,413 | | | | | | 73,729 | | | | | | 49,986 | | |
| | |
Berry
Historical |
| |
AEP
Historical |
| |
Pro Forma Adjustments
|
| |
Pro Forma
|
| ||||||||||||||||||
| | |
Transaction
|
| |
AEP Financing
|
| ||||||||||||||||||||||||
Cash
|
| | | $ | 236 | | | | | $ | 63 | | | | | $ | (498)(a) | | | | | $ | 444(f) | | | | | $ | 245 | | |
Accounts receivable, net
|
| | | | 725 | | | | | | 104 | | | | | | — | | | | | | — | | | | | | 829 | | |
Inventory
|
| | | | 708 | | | | | | 98 | | | | | | 28(b) | | | | | | — | | | | | | 834 | | |
Deferred income taxes
|
| | | | — | | | | | | 3 | | | | | | (3)(c) | | | | | | — | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 97 | | | | | | 3 | | | | | | (1)(g) | | | | | | — | | | | | | 99 | | |
Total current assets
|
| | | | 1,766 | | | | | | 271 | | | | | | (474) | | | | | | 444 | | | | | | 2,007 | | |
Property, plant and equipment, net
|
| | | | 2,276 | | | | | | 185 | | | | | | 13(d) | | | | | | — | | | | | | 2,474 | | |
Goodwill, intangible assets, and deferred
costs |
| | | | 3,735 | | | | | | 10 | | | | | | 542(e) | | | | | | — | | | | | | 4,287 | | |
Other assets
|
| | | | 28 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | 31 | | |
Total assets
|
| | | $ | 7,805 | | | | | $ | 469 | | | | | $ | 81 | | | | | $ | 444 | | | | | $ | 8,799 | | |
Accounts payable
|
| | | $ | 554 | | | | | $ | 66 | | | | | $ | — | | | | | $ | — | | | | | | 620 | | |
Accrued expenses and other current
liabilities |
| | | | 466 | | | | | | 52 | | | | | | — | | | | | | — | | | | | | 518 | | |
Current portion of long-term debt
|
| | | | 66 | | | | | | 2 | | | | | | — | | | | | | 5(f) | | | | | | 73 | | |
Total current liabilities
|
| | | | 1,086 | | | | | | 120 | | | | | | — | | | | | | 5 | | | | | | 1,211 | | |
Long-term debt
|
| | | | 5,812 | | | | | | 209 | | | | | | (200)(f) | | | | | | 439(f) | | | | | | 6,260 | | |
Deferred income taxes
|
| | | | 365 | | | | | | 20 | | | | | | 105(c) | | | | | | — | | | | | | 490 | | |
Other long-term liabilities
|
| | | | 375 | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 381 | | |
Redeemable non-controlling interest
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | |
Stockholders’ equity
|
| | | | 155 | | | | | | 114 | | | | | | 176(g) | | | | | | — | | | | | | 445 | | |
Total liabilities and equity
|
| | | $ | 7,805 | | | | | $ | 469 | | | | | $ | 81 | | | | | $ | 444 | | | | | $ | 8,799 | | |
|
| | |
Berry
Historical |
| |
AVINTIV
Historical(1) |
| |
AEP
Historical(4) |
| |
Pro Forma Adjustments
|
| |
Pro Forma
|
| |||||||||||||||||||||
| | |
AVINTIV(2)(3)
|
| |
AEP(5)
|
| ||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 4,881 | | | | | $ | 1,859 | | | | | $ | 1,141 | | | | | $ | — | | | | | $ | — | | | | | $ | 7,881 | | |
Cost of goods sold
|
| | | | 4,012 | | | | | | 1,455 | | | | | | 1,006 | | | | | | 5(h) | | | | | | 28(m) | | | | | | 6,506 | | |
Selling, general and administrative
|
| | | | 357 | | | | | | 281 | | | | | | 72 | | | | | | (5)(i) | | | | | | — | | | | | | 705 | | |
Amortization of intangibles
|
| | | | 91 | | | | | | 13 | | | | | | — | | | | | | 44(j) | | | | | | 30(n) | | | | | | 178 | | |
Restructuring and impairment
|
| | | | 13 | | | | | | 3 | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 18 | | |
Operating income (loss)
|
| | | | 408 | | | | | | 107 | | | | | | 61 | | | | | | (44) | | | | | | (58) | | | | | | 474 | | |
Interest expense, net
|
| | | | 191 | | | | | | 111 | | | | | | 19 | | | | | | 7(k) | | | | | | (1)(o) | | | | | | 327 | | |
Foreign currency and other, net
|
| | | | 1 | | | | | | 102 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | 101 | | |
Debt extinguishment
|
| | | | 94 | | | | | | 13 | | | | | | — | | | | | | — | | | | | | — | | | | | | 107 | | |
Income (loss) before income taxes
|
| | | | 122 | | | | | | (119) | | | | | | 44 | | | | | | (51) | | | | | | (57) | | | | | | (61) | | |
Income tax expense (benefit)
|
| | | | 36 | | | | | | 24 | | | | | | 15 | | | | | | (71)(l) | | | | | | (22)(p) | | | | | | (18) | | |
Consolidated net income (loss)
|
| | | | 86 | | | | | | (143) | | | | | | 29 | | | | | | 20 | | | | | | (35) | | | | | | (43) | | |
Income (loss) attributed to non-controlling interests
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | |
Net income (loss) attributed to
Berry |
| | | $ | 86 | | | | | $ | (144) | | | | | $ | 29 | | | | | $ | 20 | | | | | $ | (35) | | | | | $ | (44) | | |
Net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.72 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.35) | | |
Diluted
|
| | | $ | 0.70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.35) | | |
Outstanding weighted-average shares
(in millions): |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 119.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 125.8 | | |
Diluted
|
| | | | 123.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 125.8 | | |
| | |
Berry
Historical |
| |
AEP
Historical(4) |
| |
Pro Forma
Adjustments(5) |
| |
Pro Forma
|
| ||||||||||||
Net sales
|
| | | $ | 4,871 | | | | | $ | 811 | | | | | $ | — | | | | | $ | 5,682 | | |
Cost of goods sold
|
| | | | 3,885 | | | | | | 701 | | | | | | (2)(m) | | | | | | 4,584 | | |
Selling, general and administrative
|
| | | | 421 | | | | | | 52 | | | | | | — | | | | | | 473 | | |
Amortization of intangibles
|
| | | | 106 | | | | | | — | | | | | | 23(n) | | | | | | 129 | | |
Restructuring and Impairment
|
| | | | 29 | | | | | | 1 | | | | | | — | | | | | | 30 | | |
Operating income (loss)
|
| | | | 430 | | | | | | 57 | | | | | | (21) | | | | | | 466 | | |
Interest expense, net
|
| | | | 222 | | | | | | 14 | | | | | | —(o) | | | | | | 236 | | |
Foreign currency and other, net
|
| | | | (21) | | | | | | — | | | | | | — | | | | | | (21) | | |
Debt extinguishment
|
| | | | 4 | | | | | | — | | | | | | — | | | | | | 4 | | |
Income (loss) before income taxes
|
| | | | 225 | | | | | | 43 | | | | | | (21) | | | | | | 247 | | |
Income tax expense (benefit)
|
| | | | 66 | | | | | | 15 | | | | | | (8)(p) | | | | | | 73 | | |
Consolidated net income (loss)
|
| | | $ | 159 | | | | | $ | 28 | | | | | $ | (13) | | | | | $ | 174 | | |
Net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 1.32 | | | | | | | | | | | | | | | | | $ | 1.37 | | |
Diluted
|
| | | $ | 1.28 | | | | | | | | | | | | | | | | | $ | 1.33 | | |
Outstanding weighted-average shares (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 120.5 | | | | | | | | | | | | | | | | | | 127.2 | | |
Diluted
|
| | | | 123.9 | | | | | | | | | | | | | | | | | | 130.6 | | |
|
Cash consideration
|
| | | $ | 294 | | |
|
Issuance of shares of Berry stock
|
| | | | 293 | | |
|
AEP equity value
|
| | | $ | 587 | | |
|
Purchase price cash consideration
|
| | | $ | (294) | | |
|
Cash required to repay outstanding AEP notes
|
| | | | (204) | | |
|
Total cash outflows
|
| | | $ | (498) | | |
| | |
Total
|
| |||
Intangible assets preliminary purchase price allocation
|
| | | $ | 250 | | |
Less: AEP historical intangible assets balance
|
| | | | (3) | | |
Elimination of LIFO reserves
|
| | | | 21 | | |
Inventory step-up to preliminary fair value
|
| | | | 7 | | |
Step up of fixed assets to preliminary fair value
|
| | | | 13 | | |
| | | | | 288 | | |
Assumed tax rate
|
| | | | 38% | | |
Net deferred tax liability adjustment from preliminary valuation analysis
|
| | | | 110 | | |
Net deferred tax (benefit) from debt extinguishment
|
| | | | (2) | | |
Net deferred tax liability adjustment
|
| | | $ | 108 | | |
|
|
AEP equity value
|
| | | $ | 587 | | |
|
Plus: debt
|
| | | | 211 | | |
|
Less: cash
|
| | | | (63) | | |
|
Purchase price
|
| | | | 735 | | |
|
Plus: liabilities assumed
|
| | | | 144 | | |
|
Less: historical basis of assets, less cash
|
| | | | (406) | | |
|
Plus: deferred tax impact of recording the preliminary valuation analysis adjustments
|
| | | | 110 | | |
|
Less: elimination of LIFO reserves
|
| | | | (21) | | |
|
Less: inventory (b) and fixed asset (d) preliminary valuation analysis adjustments
|
| | | | (20) | | |
|
Goodwill and intangible assets
|
| | | $ | 542 | | |
|
|
Term Loan, net discount and fees (cash received)
|
| | | $ | 444 | | |
|
Less: current portion
|
| | | | (5) | | |
|
Net long term debt incurred to finance AEP Transaction
|
| | | $ | 439 | | |
|
Historical AEP debt including current portion
|
| | | $ | 211 | | |
|
Less: Rollover of AEP historical debt
|
| | | | (11) | | |
|
Net AEP debt repaid
|
| | | $ | 200 | | |
|
|
Elimination of historical AEP equity
|
| | | $ | (114) | | |
|
Issuance of shares of Berry stock (a)
|
| | | | 293 | | |
|
Equity impact of expensed transaction costs and write-off of capitalized debt costs
|
| | | | (3) | | |
|
Net Equity
|
| | | $ | 176 | | |
|
| | |
(A)
|
| |
(B)
|
| |
(C)
|
| |
= A + B - C
|
| ||||||||||||
| | |
Three Quarters Ended
September 30, 2015 |
| |
Year Ended
December 31, 2014 |
| |
Three Quarters Ended
September 27, 2014 |
| |
Year Ended
September 30, 2015 |
| ||||||||||||
Net sales
|
| | | $ | 1,359 | | | | | $ | 1,860 | | | | | $ | 1,360 | | | | | $ | 1,859 | | |
Cost of goods sold
|
| | | | 1,053 | | | | | | 1,527 | | | | | | 1,119 | | | | | | 1,461 | | |
Selling, general and administrative
|
| | | | 195 | | | | | | 254 | | | | | | 185 | | | | | | 264 | | |
Special charges
|
| | | | 24 | | | | | | 59 | | | | | | 48 | | | | | | 35 | | |
Other expenses
|
| | | | (7) | | | | | | 2 | | | | | | 3 | | | | | | (8) | | |
Operating income (loss)
|
| | | | 94 | | | | | | 18 | | | | | | 5 | | | | | | 107 | | |
Interest expense, net
|
| | | | 82 | | | | | | 96 | | | | | | 67 | | | | | | 111 | | |
Foreign currency and other, net
|
| | | | 87 | | | | | | 27 | | | | | | 12 | | | | | | 102 | | |
Debt extinguishment
|
| | | | 13 | | | | | | 16 | | | | | | 16 | | | | | | 13 | | |
Income (loss) before income taxes
|
| | | | (88) | | | | | | (121) | | | | | | (90) | | | | | | (119) | | |
Income tax expense (benefit)
|
| | | | 24 | | | | | | (2) | | | | | | (2) | | | | | | 24 | | |
Consolidated net income (loss)
|
| | | | (112) | | | | | | (119) | | | | | | (88) | | | | | | (143) | | |
Income (loss) attributed to non-controlling interests
|
| | | | 1 | | | | | | (4) | | | | | | (4) | | | | | | 1 | | |
Net income (loss) attributed to the Company
|
| | | $ | (113) | | | | | $ | (115) | | | | | $ | (84) | | | | | $ | (144) | | |
|
Fiscal 2015
|
| |
AVINTIV
Reported |
| |
Amortization
|
| |
Special
Charges |
| |
Other
Expenses |
| |
AVINTIV
Historical |
| |||||||||||||||
Cost of goods sold
|
| | | $ | 1,461 | | | | | $ | — | | | | | $ | — | | | | | $ | (6) | | | | | $ | 1,455 | | |
Selling, general and administrative
|
| | | | 264 | | | | | | (13) | | | | | | 32 | | | | | | (2) | | | | | | 281 | | |
Special charges
|
| | | | 35 | | | | | | — | | | | | | (35) | | | | | | — | | | | | | — | | |
Other expenses
|
| | | | (8) | | | | | | — | | | | | | — | | | | | | 8 | | | | | | — | | |
Amortization of intangibles
|
| | | | — | | | | | | 13 | | | | | | — | | | | | | — | | | | | | 13 | | |
Restructuring and impairment
|
| | | | — | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 3 | | |
| | |
Fiscal 2015
|
| |||
Eliminate historical interest expense
|
| | | $ | (107) | | |
AVINTIV financing
|
| | | | 108 | | |
Amortization of deferred financing fees and discount
|
| | | | 6 | | |
| | | | $ | 7 | | |
|
Fiscal 2015
|
| |
AEP
Reported |
| |
Share Based
Compensation |
| |
Impairment
|
| |
Gain, net
|
| |
Delivery
|
| |
AEP
Historical |
|||||||||||||||||
Cost of goods sold
|
| | | $ | 960 | | | | | $ | (2) | | | | | $ | (2) | | | | | $ | — | | | | | $ | 50 | | | | | $ | 1,006 |
Selling, general and administrative
|
| | | | 70 | | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | 72 |
Delivery
|
| | | | 50 | | | | | | — | | | | | | — | | | | | | — | | | | | | (50) | | | | | | — |
Restructuring and impairment
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 |
Gain on sales of property, plant and equipment, net
|
| | | | (1) | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — |
Other, net
|
| | | | (1) | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (2) |
Three quarterly periods ended July 2, 2016
|
| |
AEP
Reported |
| |
Impairment
|
| |
Delivery
|
| |
AEP
Historical |
| ||||||||||||
Cost of goods sold
|
| | | $ | 667 | | | | | $ | (1) | | | | | $ | 35 | | | | | $ | 701 | | |
Delivery
|
| | | | 35 | | | | | | — | | | | | | (35) | | | | | | — | | |
Restructuring and impairment
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | 1 | | |
| | |
Fiscal 2015
|
| |
Three Quarters
Ended July 2, 2016 |
| ||||||
Eliminate historical interest expense
|
| | | $ | (19) | | | | | $ | (13) | | |
AEP financing
|
| | | | 17 | | | | | | 12 | | |
Amortization of deferred financing fees and discount
|
| | | | 1 | | | | | | 1 | | |
| | | | $ | (1) | | | | | $ | — | | |
|
| | |
Berry
Historical |
| |
Berry/
AVINTIV Pro Forma |
| |
AEP
Historical |
| |
Berry/
AVINTIV/ AEP Pro Forma(2) |
| |
Pro Forma
Equivalent AEP Share(3) |
| |||||||||||||||
Book value per share:(1) | | | | | | | |||||||||||||||||||||||||
As of July 2, 2016
|
| | | $ | 1.29 | | | | | $ | 1.29 | | | | | $ | 22.37 | | | | | $ | 3.50 | | | | | $ | 8.75 | | |
Cash dividends per share: | | | | | | | |||||||||||||||||||||||||
Three quarterly periods ended July 2, 2016
|
| | | $ | — | | | | | $ | — | | | | | $ | 0.75 | | | | | $ | — | | | | | $ | — | | |
Fiscal year ended September 26, 2015
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Basic earnings (loss) per share: | | | | | | | |||||||||||||||||||||||||
Three quarterly periods ended July 2, 2016
|
| | | $ | 1.32 | | | | | $ | 1.32 | | | | | $ | 5.47 | | | | | $ | 1.37 | | | | | $ | 3.43 | | |
Fiscal year ended September 26, 2015
|
| | | $ | 0.72 | | | | | $ | (0.32) | | | | | $ | 5.66 | | | | | $ | (0.35) | | | | | $ | (0.88) | | |
Diluted earnings (loss) per share: | | | | | | | |||||||||||||||||||||||||
Three quarterly periods ended July 2, 2016
|
| | | $ | 1.28 | | | | | $ | 1.28 | | | | | $ | 5.44 | | | | | $ | 1.33 | | | | | $ | 3.33 | | |
Fiscal year ended September 26, 2015
|
| | | $ | 0.70 | | | | | $ | (0.32) | | | | | $ | 5.64 | | | | | $ | (0.35) | | | | | $ | (0.88) | | |
| | |
Price Per Berry Common Share
|
| |
Dividends
Declared Per Berry Common Share |
| ||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||
Fiscal 2014 | | | | | |||||||||||||||
First Quarter (ended December 28, 2013)
|
| | | $ | 23.68 | | | | | $ | 18.09 | | | | | | N/A | | |
Second Quarter (ended March 29, 2014)
|
| | | $ | 25.20 | | | | | $ | 21.56 | | | | | | N/A | | |
Third Quarter (ended June 28, 2014)
|
| | | $ | 26.09 | | | | | $ | 21.55 | | | | | | N/A | | |
Fourth Quarter (ended September 27, 2014)
|
| | | $ | 26.33 | | | | | $ | 23.49 | | | | | | N/A | | |
Fiscal 2015 | | | | | | | | | | ||||||||||
First Quarter (ended December 27, 2014)
|
| | | $ | 31.88 | | | | | $ | 22.62 | | | | | | N/A | | |
Second Quarter (ended March 28, 2015)
|
| | | $ | 36.52 | | | | | $ | 30.88 | | | | | | N/A | | |
Third Quarter (ended June 27, 2015)
|
| | | $ | 37.08 | | | | | $ | 31.94 | | | | | | N/A | | |
Fourth Quarter (ended September 26, 2015)
|
| | | $ | 35.75 | | | | | $ | 28.43 | | | | | | N/A | | |
Fiscal 2016 | | | | | |||||||||||||||
First Quarter (ended January 2, 2016)
|
| | | $ | 37.59 | | | | | $ | 28.41 | | | | | | N/A | | |
Second Quarter (ended April 2, 2016)
|
| | | $ | 36.66 | | | | | $ | 27.79 | | | | | | N/A | | |
Third Quarter (ended July 2, 2016)
|
| | | $ | 40.00 | | | | | $ | 34.96 | | | | | | N/A | | |
Fourth Quarter (through [_______], 2016)
|
| | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | |
| | |
Price Per AEP Common Share
|
| |
Dividends
Declared Per AEP Common Share |
| ||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||
Fiscal 2014 | | | | | |||||||||||||||
First Quarter (November – January)
|
| | | $ | 60.53 | | | | | $ | 43.62 | | | | | | N/A | | |
Second Quarter (February – April)
|
| | | $ | 46.00 | | | | | $ | 34.28 | | | | | | N/A | | |
Third Quarter (May – July)
|
| | | $ | 42.71 | | | | | $ | 29.67 | | | | | | N/A | | |
Fourth Quarter (August – October)
|
| | | $ | 48.69 | | | | | $ | 36.20 | | | | | | N/A | | |
| | |
Price Per AEP Common
Share |
| |
Dividends
Declared Per AEP Common Share |
| | ||||||||||||||
| | |
High
|
| |
Low
|
| | ||||||||||||||
Fiscal 2015 | | | | | | | | | | | | | | | | | | | | | ||
First Quarter (November – January)
|
| | | $ | 58.88 | | | | | $ | 43.10 | | | | | | N/A | | | | ||
Second Quarter (February – April)
|
| | | $ | 60.64 | | | | | $ | 35.20 | | | | | | N/A | | | | ||
Third Quarter (May – July)
|
| | | $ | 62.75 | | | | | $ | 42.98 | | | | | | N/A | | | | ||
Fourth Quarter (August – October)
|
| | | $ | 84.71 | | | | | $ | 47.43 | | | | | | N/A | | | | ||
Fiscal 2016 | | | | | | |||||||||||||||||
First Quarter (November – January)
|
| | | $ | 93.94 | | | | | $ | 71.44 | | | | | $ | 0.25 | | | | | |
Second Quarter (February – April)
|
| | | $ | 85.20 | | | | | $ | 60.10 | | | | | $ | 0.25 | | | | ||
Third Quarter (May – July)
|
| | | $ | 94.91 | | | | | $ | 56.89 | | | | | $ | 0.25 | | | | ||
Fourth Quarter (August through [_______], 2016)
|
| | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | | |
| | |
Berry Common Stock
|
| |
AEP Common Stock
|
| ||||||||||||||||||||||||||||||
| | |
High
|
| |
Low
|
| |
Close
|
| |
High
|
| |
Low
|
| |
Close
|
| ||||||||||||||||||
| | |
(Dollars per share)
|
| |||||||||||||||||||||||||||||||||
August 24, 2016
|
| | | $ | 44.06 | | | | | $ | 43.18 | | | | | $ | 43.28 | | | | | $ | 77.35 | | | | | $ | 76.47 | | | | | $ | 76.97 | | |
[___________], 2016
|
| | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | | | | $ | [____] | | |