EVANSVILLE, IN - July 20, 2009 - Berry Plastics Corporation (the "Company") estimates that its net sales will total approximately $770 million during its fiscal 2009 third quarter, representing a decrease of 18% over $940 million in the fiscal 2008 third quarter. This decrease includes an estimated reduction in sales volume of 7% and estimated net selling price decreases of 11% primarily resulting from lower raw material costs. Also, the Company estimates that its fiscal 2009 third quarter Adjusted EBITDA, which is a Non-GAAP measure, will be approximately $141 million, an increase from $138 million for the fiscal 2008 third quarter. These amounts reflect management's estimate as of the date of this press release; actual results may vary from these results. The following table reconciles net income (loss) to the Company's estimate of Adjusted EBITDA for fiscal 2009 third quarter and 52 weeks ended June 27, 2009 and reported Adjusted EBITDA for fiscal 2008 third quarter:
Adjusted EBITDA is a financial metric utilized in the calculation of the first lien leverage ratio as defined in the Company's senior secured credit facilities. While the determination of appropriate adjustments in the calculation of Adjusted EBITDA is subject to interpretation under the terms of the Credit Facility, management believes the adjustments described above are in accordance with the covenants in the Credit Facility. Adjusted EBITDA should not be considered in isolation or construed as an alternative to our net income (loss) or other measures as determined in accordance with GAAP. In addition, other companies in our industry or across different industries may calculate bank covenants and related definitions differently than we do, limiting the usefulness of our calculation of Adjusted EBITDA as a comparative measure.
At June 27, 2009, the Company had estimated $29 million of cash and $70 million outstanding on the revolving credit facility providing unused borrowing capacity of $280 million under the revolving line of credit subject to the solvency of our lenders to fund their obligations and our borrowing base calculations.
In 2009, BP Parallel LLC agreed to invest in the Company's 10¼% senior subordinated notes and purchase assignments of the Berry Plastics Group, Inc. senior unsecured term loan. The following table presents the status of these investments at June 27, 2009:
This press release is for informational purposes only and is not intended to serve as a solicitation to buy securities or an offer to sell securities.
Berry Plastics is a leading manufacturer and marketer of plastic packaging products and is headquartered in Evansville, Indiana.