Multi Packaging Solutions Announces Third Quarter Results
Marc Shore, Chief Executive Officer, commented, “We are pleased with our third fiscal quarter and nine months results notwithstanding certain challenges. Our nine-month EBITDA results were a record $205 million with a record EBITDA margin of 15.9%. Further, we have significantly deleveraged our balance sheet which includes an additional $15 million voluntary debt prepayment on March 9, 2016.
On the negative side, foreign exchange rates impacted EBITDA by $12.2 million year to date, the cold and flu season was soft, and certain consumer customers had lower than expected sales. On the positive side, global and cross selling sales initiatives are beginning to generate meaningful traction and operational improvements continue. We have successfully integrated our acquisitions, have achieved our original synergy targets, and will continue to optimize our operations over the next several quarters. For example, we have announced the intention to relocate our Stuttgart, Germany business and are working with the European Works Councils to this end. We expect to consolidate this facility into other existing facilities in Germany in order to better serve our customers and gain operational efficiencies. Our plans also include evaluating several other opportunities over the next few quarters in order to maximize the efficiency of our global manufacturing footprint. In connection with these plans, the Company expects to record $5 million of restructuring and closure cost charges over the next four quarters. We look forward to continued progress in global and cross selling sales initiatives, further self-help operational improvements and margin improvement, and opportunistic tuck–in acquisitions like Chicago Paper Tube in the quarters to come.