EveryWare Global Posts Q4 Loss, Increased Loss for FY
April 1, 2014,
LANCASTER, Ohio-With gross margin off and expenses rising due to restructuring and the recently acquired business in the United Kingdom, EveryWare Global reported a net loss of $14.3 million in its fiscal fourth quarter, compared to net income of $1.1 million for its fourth quarter of last year.
For the fiscal year ending on Dec. 31, EveryWare's net loss totaled $17.4 million, compared to the $4 million net loss it registered in the prior fiscal year. Gross margin in the quarter fell 610 basis points to 16.5 percent. The added restructuring and acquisition expenses pushed the company's overall operating expenses up 16 percent in dollars and 200 basis points as a percentage of sales, to 20.5 percent.
Last year, EveryWare made a deal to acquire the George Wilkinson and Samuel Groves business units of U.K.-based Metalrax Housewares.
Net sales in the quarter increased 4.8 percent to $127.7 million, bringing the net sales total for the year to $433.3 million, up 4.5 percent. A steep rise in sales from its international segment bolstered the top line in both periods, along with gains from its specialty segment.
Sam Solomon, who became EveryWare's interim CEO in February, said, "With a renewed focus on our most important channels and by leveraging our iconic brands we are taking actions that will create more customer value, improve margins, reduce costs, more efficiently allocate capital and ultimately generate free cash that can be used to invest in the business and pay down debt."