BWAY Holding reduces net debt, leverage ratio in fiscal 2009

By Jennifer Lanning Drey

Portland, Ore., Dec. 10 - BWAY Holding Co. reduced net debt by $15.6 million during fiscal 2009 and lowered its leverage ratio to 2.5 times at Sept. 27 from 3.1 times at the start of the fiscal year, Michael Clauer, chief financial officer of BWAY, said Thursday during the company's fourth-quarter and year-end conference call.

In addition, the company's strong cash flow, the mid-year refinancing of its bonds and improved operating performance allowed BWAY to execute on its add-on acquisition strategy during the fiscal year, Ken Roessler, chief executive officer of BWAY, said during the call.

"Our strategy remains balanced between organic initiatives, which offer relatively high returns at low risks, and add-on acquisitions supported by a strong balance sheet with good liquidity," Roessler said.

Free cash flow provided by operating activities less capital expenditures was $52.8 million for fiscal 2009, compared with $39.8 million for the year-earlier period.

During Thursday's call, Clauer said BWAY was confirming its previously provided full-year free cash flow guidance of $55 million to $60 million for fiscal 2010.

The company reported adjusted EBITDA of $125.0 million for fiscal 2009, compared with $104.6 million for fiscal 2008.

Atlanta-based BWAY Holding manufactures and distributes metal and rigid plastic containers used primarily by manufacturers of industrial and consumer products for packaging.

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