Libbey Inc. Announces First-Quarter 2020 Results.

TOLEDO, Ohio: Libbey Inc. (OTC: LBYYQ), one of the world's largest glass tableware manufacturers, today reported results for the first quarter ended March 31, 2020.

First-quarter 2020 Financial & Operating Highlights

Net sales were $150.5 million, a decrease of 14.0 percent, versus the prior-year period as volumes were significantly impacted by the COVID-19 global pandemic.

Selling, general and administrative expense was reduced by $6.1 million versus the prior year.

Net loss was ($78.7) million, compared to net loss of ($4.5) million in the first quarter of 2019. Net loss in the first quarter of 2020 was affected by a $38.4 million non-cash goodwill impairment in our U.S. and Canada segment and a $12.9 million non-cash charge related to the loss of hedge accounting treatment on our derivative contracts. Additionally, the Company recorded valuation allowances against the net deferred tax assets in all of the operating jurisdictions which accounted for nearly all of the $20.4 million of tax expense, or a (34.9) percent effective tax rate.

Adjusted EBITDA (see Table 1) increased 3.7 percent versus the prior year to $10.1 million. The weaker sales demand experienced during the latter half of the first quarter of 2020 was offset by SG&A savings and a favorable currency impact during the quarter.

Free Cash Flow (see Table 2) was favorable by $2.0 million compared to the first quarter of 2019 driven by Trade Working Capital and reductions in capital expenditures.

"During the early months of 2020, Libbey's core USC and LATAM business segments were performing well, delivering strong Adjusted EBITDA and margin results on a run rate basis," said Mike Bauer, Libbey's chief executive officer. "Our team came into 2020 prepared to build on the strong momentum we captured across our business in the second half of 2019, while continuing to execute our plans to reduce costs and improve cash flow generation. For the majority of the quarter, our operating performance exceeded our initial forecast; however, beginning in mid-March, our business results were materially impacted by COVID-19. Mandated shutdowns across a large part of the U.S. and global economy were felt across our key end markets, with the foodservice industry being one of the most directly impacted. This global pandemic negatively impacted our first quarter performance, but it also introduced significant uncertainty into the future demand landscape, particularly in our core U.S. foodservice...