PGI Q1'FY14 adjusted EBITDA advances 68.3%

08 May '14

2 min read

Polymer Group, Inc. reported results of operations for the first quarter ended March 29, 2014.

As previously announced, the Company completed the acquisition of Fiberweb on November 15, 2013 (the "Acquisition Date"), whereby Fiberweb became a wholly-owned subsidiary of the Company. The results of operations of Fiberweb have been included in the Company's operating results since the Acquisition Date.

First Quarter 2014 Highlights:

-Net sales for the first quarter increased 47.2% from a year ago and increased 21.7% from the fourth quarter of 2013.

-Adjusted EBITDA for the first quarter increased 68.3% from a year ago and increased 29.0% from the fourth quarter of 2013.

-Fiberweb Acquisition and Growth Investments Lead Year-over-Year and Sequential Improvement

-Integration of Fiberweb and cost optimization realization are ahead of schedule and contributing to volume, net sales and Adjusted EBITDA growth that is expected to continue in 2014.

-New hygiene line in Asia contributing to year-over-year volume and profit growth.

-Economic Leadership in Core Markets and Developing Regions Complements New Growth Opportunities

-Net sales for the first quarter of 2014, excluding Fiberweb, increased 5.7% from a year ago and were consistent with the fourth quarter of 2013 as underlying demand stabilized in the Americas and Europe while Asia continued its strong pace.

-Cost optimization, operational excellence initiatives and manufacturing efficiencies contributed to improvement in profitability.

-Higher raw material cost led to net spread compression in the quarter, but are expected to moderate in the near term.

FIRST QUARTER 2014 RESULTS

Net sales were $422.6 million for the first quarter of 2014 compared with $287.1 million for the first quarter of 2013. The increase in net sales was primarily driven by an increase in overall volumes as well as improved pricing and favorable foreign currency impacts of $2.6 million. Net sales in Asia increased 25.2% driven by a strong healthcare market as well as incremental volume from our new hygiene manufacturing line. In addition, net sales in the Americas and Europe increased 39.6% and 83.5%, respectively, as incremental Fiberweb sales and continued contribution from our new spunmelt line in Waynesboro, Va., helped mitigate lower net selling prices and product mix issues in Europe and Asia.

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PGI

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