Third Quarter 2024 Highlights and Financial Results
- Shifted operating structure into two distinct verticals, Food and Protective, and announced both vertical presidents with strong commercial packaging expertise
- Volume growth in Food driven by strong end-market demand and competitive wins
- Protective industrial and fulfillment portfolios continue to be weak
- Cost take-out on track to generate
$90 million of incremental cost savings for full-year 2024 - Net leverage ratio reduced to 3.7x with maintained focus on deleveraging the balance sheet
- Updating our financial outlook for 2024
"With the shift into two verticals, Food and Protective, and the onboarding of new leadership, we have positioned
"While our third quarter results were ahead of expectation, the strength of our Food business continues to be offset by continued softness in our Protective portfolio. As a result, we are maintaining the midpoint of our Sales and Adjusted EBITDA guidance," said
($ millions, except per share data) |
|
|
|
|
GAAP Results |
Third Quarter |
|
|
|
|
2024 |
2023 |
Reported △% |
Constant Currency △% |
|
|
|
(2.7) % |
(2.3) % |
Net Earnings |
|
|
54.0 % |
|
Diluted EPS |
|
|
52.5 % |
|
Cash Flow from Operations (YTD) |
|
|
151.3 % |
|
|
|
|
|
|
Non-GAAP Results |
Third Quarter |
|
|
|
|
2024 |
2023 |
Reported △% |
|
Adjusted EBITDA |
|
|
(3.1) % |
|
Adjusted Net Earnings |
|
|
3.8 % |
|
Adjusted Diluted EPS |
|
|
2.6 % |
|
Free Cash Flow (YTD) |
|
|
76.8 % |
|
|
(1) 2023 excludes the impact of a |
|
Unless otherwise stated, all results compare third quarter 2024 results to third quarter 2023 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported. |
Third Quarter 2024 Financial Highlights
Net sales of
Income tax expense was
Net earnings were
Adjusted EBITDA was
Business Segment Highlights
Third quarter net sales in Food were
Third quarter net sales in Protective were
Cash Flow and Net Debt
Cash flow from operating activities during the first nine months of 2024 was a source of
Capital expenditures in the first nine months of 2024 were
Dividend payments for the first nine months of both 2024 and 2023 were
Total debt was
Updated 2024 Full Year Outlook
|
|
Adjusted EBITDA |
|
Adjusted EPS |
|
Free Cash Flow |
|
Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items.
Conference Call Information
About
Website Information
We routinely post important information for investors on our website, www.sealedair.com, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases,
Non-GAAP Information
In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a "constant dollar" basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers' performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the "Risk Factors" section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the
Any forward-looking statements made by us in this press release are based solely on management's estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law.
Company Contacts
Investors
brian.c.sullivan@sealedair.com
704.503.8841
louise.lagache@sealedair.com
Media
amanda.hoggarth@sealedair.com
Condensed Consolidated Statements of Operations (Unaudited)
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
(In USD millions, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales |
|
$ 1,345.1 |
|
$ 1,381.8 |
|
$ 4,019.8 |
|
$ 4,111.4 |
Cost of sales |
|
943.6 |
|
968.5 |
|
2,801.5 |
|
2,875.0 |
Gross profit |
|
401.5 |
|
413.3 |
|
1,218.3 |
|
1,236.4 |
Selling, general and administrative expenses |
|
187.1 |
|
181.8 |
|
563.8 |
|
582.6 |
Loss on disposal of businesses and property and equipment, net |
|
(5.4) |
|
(48.7) |
|
(5.8) |
|
(55.2) |
Amortization expense of intangible assets |
|
15.9 |
|
15.4 |
|
47.0 |
|
46.0 |
Restructuring charges |
|
6.8 |
|
9.8 |
|
24.8 |
|
9.2 |
Operating profit |
|
186.3 |
|
157.6 |
|
576.9 |
|
543.4 |
Interest expense, net |
|
(60.5) |
|
(70.1) |
|
(188.9) |
|
(196.6) |
Other expense, net |
|
(6.4) |
|
(9.6) |
|
(14.0) |
|
(33.0) |
Earnings before income tax provision |
|
119.4 |
|
77.9 |
|
374.0 |
|
313.8 |
Income tax provision |
|
30.7 |
|
20.3 |
|
104.1 |
|
99.4 |
Net earnings from continuing operations |
|
88.7 |
|
57.6 |
|
269.9 |
|
214.4 |
Gain (Loss) on sale of discontinued operations, net of tax |
|
3.0 |
|
(1.0) |
|
2.1 |
|
3.2 |
Net earnings |
|
$ 91.7 |
|
$ 56.6 |
|
$ 272.0 |
|
$ 217.6 |
Basic: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ 0.61 |
|
$ 0.40 |
|
$ 1.86 |
|
$ 1.49 |
Discontinued operations |
|
0.02 |
|
(0.01) |
|
0.01 |
|
0.02 |
Net earnings per common share - basic |
|
$ 0.63 |
|
$ 0.39 |
|
$ 1.87 |
|
$ 1.51 |
Weighted average common shares outstanding - basic |
|
145.8 |
|
144.5 |
|
145.5 |
|
144.3 |
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ 0.61 |
|
$ 0.40 |
|
$ 1.85 |
|
$ 1.48 |
Discontinued operations |
|
0.02 |
|
(0.01) |
|
0.02 |
|
0.02 |
Net earnings per common share - diluted |
|
$ 0.63 |
|
$ 0.39 |
|
$ 1.87 |
|
$ 1.50 |
Weighted average common shares outstanding - diluted |
|
146.1 |
|
144.9 |
|
145.8 |
|
144.8 |
Condensed Consolidated Balance Sheets (Unaudited)
|
||||
(In USD millions) |
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ 386.0 |
|
$ 346.1 |
Trade receivables, net |
|
478.7 |
|
442.6 |
Income tax receivables |
|
19.7 |
|
44.9 |
Other receivables |
|
95.6 |
|
94.2 |
Advances and deposits |
|
67.4 |
|
72.8 |
Inventories, net |
|
807.3 |
|
774.3 |
Prepaid expenses and other current assets |
|
204.8 |
|
188.4 |
Total current assets |
|
2,059.5 |
|
1,963.3 |
Property and equipment, net |
|
1,438.0 |
|
1,416.4 |
|
|
2,896.8 |
|
2,892.5 |
Identifiable intangible assets, net |
|
397.6 |
|
439.0 |
Deferred taxes |
|
151.8 |
|
130.8 |
Operating lease right-of-use-assets |
|
97.5 |
|
86.5 |
Other non-current assets |
|
279.9 |
|
272.1 |
Total assets |
|
$ 7,321.1 |
|
$ 7,200.6 |
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term borrowings |
|
$ 139.7 |
|
$ 140.7 |
Current portion of long-term debt |
|
58.1 |
|
35.7 |
Current portion of operating lease liabilities |
|
29.1 |
|
29.2 |
Accounts payable |
|
800.9 |
|
764.6 |
Accrued restructuring costs |
|
17.9 |
|
23.1 |
Income tax payable |
|
47.5 |
|
28.7 |
Other current liabilities |
|
499.7 |
|
487.0 |
Total current liabilities |
|
1,592.9 |
|
1,509.0 |
Long-term debt, less current portion |
|
4,334.0 |
|
4,513.9 |
Long-term operating lease liabilities, less current portion |
|
75.0 |
|
66.7 |
Deferred taxes |
|
36.0 |
|
35.8 |
Other non-current liabilities |
|
512.0 |
|
525.7 |
Total liabilities |
|
6,549.9 |
|
6,651.1 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock |
|
— |
|
— |
Common stock |
|
15.5 |
|
15.4 |
Additional paid-in capital |
|
1,438.3 |
|
1,429.5 |
Retained earnings |
|
680.1 |
|
496.5 |
Common stock in treasury |
|
(404.2) |
|
(436.4) |
Accumulated other comprehensive loss, net of taxes |
|
(958.5) |
|
(955.5) |
Total stockholders' equity |
|
771.2 |
|
549.5 |
Total liabilities and stockholders' equity |
|
$ 7,321.1 |
|
$ 7,200.6 |
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
||||
|
|
Nine Months Ended |
||
(In USD millions) |
|
2024 |
|
2023 |
Net earnings |
|
$ 272.0 |
|
$ 217.6 |
Adjustments to reconcile net earnings to net cash provided by operating activities(1) |
|
233.7 |
|
279.7 |
Changes in operating assets and liabilities: |
|
|
|
|
Trade receivables, net |
|
(42.8) |
|
18.1 |
Inventories, net |
|
(56.2) |
|
60.2 |
Accounts payable |
|
36.5 |
|
(132.7) |
Customer advance payments |
|
(5.5) |
|
(9.8) |
Income tax receivable/payable |
|
44.7 |
|
(9.9) |
Tax deposit |
|
— |
|
(175.0) |
Other assets and liabilities |
|
1.4 |
|
(55.7) |
Net cash provided by operating activities |
|
$ 483.8 |
|
$ 192.5 |
Cash flows from investing activities: |
|
|
|
|
Capital expenditures |
|
(161.1) |
|
(185.0) |
Proceeds related to sale of business and property and equipment, net |
|
0.7 |
|
1.9 |
Business acquired in purchase transactions, net of cash acquired |
|
4.2 |
|
(1,162.9) |
(Payments) proceeds associated with debt, equity and equity method investments |
|
(1.1) |
|
3.3 |
Settlement of foreign currency forward contracts |
|
(11.0) |
|
15.1 |
Proceeds from cross-currency swaps |
|
3.1 |
|
1.6 |
Net cash used in investing activities |
|
$ (165.2) |
|
$ (1,326.0) |
Cash flows from financing activities: |
|
|
|
|
Net (payments) proceeds from short-term borrowings |
|
(1.6) |
|
206.6 |
Proceeds from long-term debt |
|
413.4 |
|
1,411.4 |
Payments of long-term debt |
|
(582.1) |
|
(433.2) |
Payments of debt modification/extinguishment costs and other |
|
(7.3) |
|
(14.1) |
Dividends paid on common stock |
|
(88.8) |
|
(88.9) |
Impact of tax withholding on share-based compensation |
|
(9.2) |
|
(21.3) |
Repurchases of common stock |
|
— |
|
(79.9) |
Principal payments related to financing leases |
|
(6.1) |
|
(6.4) |
Net cash (used in) provided by financing activities |
|
$ (281.7) |
|
$ 974.2 |
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
$ 3.0 |
|
$ (15.5) |
Cash and cash equivalents |
|
346.1 |
|
456.1 |
Restricted cash and cash equivalents |
|
— |
|
— |
Balance, beginning of period |
|
$ 346.1 |
|
$ 456.1 |
Net change during the period |
|
$ 39.9 |
|
$ (174.8) |
Cash and cash equivalents |
|
386.0 |
|
281.3 |
Restricted cash and cash equivalents |
|
— |
|
— |
Balance, end of period |
|
$ 386.0 |
|
$ 281.3 |
|
|
|
|
|
Non-GAAP Free Cash Flow: |
|
|
|
|
Cash flow from operating activities |
|
$ 483.8 |
|
$ 192.5 |
Capital expenditures |
|
(161.1) |
|
(185.0) |
Non-GAAP Free Cash Flow |
|
$ 322.7 |
|
$ 7.5 |
|
|
|
|
|
|
|
Nine Months Ended |
||
(In USD millions) |
|
2024 |
|
2023 |
Supplemental Cash Flow Information: |
|
|
|
|
Interest payments |
|
$ 220.3 |
|
$ 201.7 |
Income tax payments, net of cash refunds(2) |
|
$ 74.9 |
|
$ 310.1 |
Restructuring payments including associated costs |
|
$ 43.5 |
|
$ 12.4 |
Non-cash items: |
|
|
|
|
Transfers of shares of common stock from treasury for profit-sharing contributions |
|
$ 25.4 |
|
$ 23.9 |
____________ |
|
(1) |
2024 adjustments primarily consist of depreciation and amortization of |
(2) |
2023 includes a |
Components of Change in (Unaudited)
|
||||||||||||
|
|
Three Months Ended |
||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
|
||||||
2023 |
|
$ 893.4 |
|
64.7 % |
|
$ 488.4 |
|
35.3 % |
|
$ 1,381.8 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Price |
|
(12.2) |
|
(1.4) % |
|
(13.4) |
|
(2.7) % |
|
(25.6) |
|
(1.8) % |
Volume(1) |
|
21.3 |
|
2.4 % |
|
(27.6) |
|
(5.7) % |
|
(6.3) |
|
(0.5) % |
Total constant dollar change (non-GAAP)(2) |
|
9.1 |
|
1.0 % |
|
(41.0) |
|
(8.4) % |
|
(31.9) |
|
(2.3) % |
Foreign currency translation |
|
(4.6) |
|
(0.5) % |
|
(0.2) |
|
— % |
|
(4.8) |
|
(0.4) % |
Total change (GAAP) |
|
4.5 |
|
0.5 % |
|
(41.2) |
|
(8.4) % |
|
(36.7) |
|
(2.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
$ 897.9 |
|
66.8 % |
|
$ 447.2 |
|
33.2 % |
|
$ 1,345.1 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
|
||||||
2023 |
|
$ 2,627.1 |
|
63.9 % |
|
$ 1,484.3 |
|
36.1 % |
|
$ 4,111.4 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Price |
|
(71.1) |
|
(2.7) % |
|
(43.4) |
|
(2.9) % |
|
(114.5) |
|
(2.8) % |
Volume(1) |
|
93.0 |
|
3.5 % |
|
(75.5) |
|
(5.1) % |
|
17.5 |
|
0.4 % |
Total organic change (non-GAAP)(2) |
|
21.9 |
|
0.8 % |
|
(118.9) |
|
(8.0) % |
|
(97.0) |
|
(2.4) % |
Acquisition |
|
23.5 |
|
0.9 % |
|
— |
|
— % |
|
23.5 |
|
0.6 % |
Total constant dollar change (non-GAAP)(2) |
|
45.4 |
|
1.7 % |
|
(118.9) |
|
(8.0) % |
|
(73.5) |
|
(1.8) % |
Foreign currency translation |
|
(12.4) |
|
(0.4) % |
|
(5.7) |
|
(0.4) % |
|
(18.1) |
|
(0.4) % |
Total change (GAAP) |
|
33.0 |
|
1.3 % |
|
(124.6) |
|
(8.4) % |
|
(91.6) |
|
(2.2) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
$ 2,660.1 |
|
66.2 % |
|
$ 1,359.7 |
|
33.8 % |
|
$ 4,019.8 |
|
100.0 % |
Components of Change in (Unaudited)
|
||||||||||||||||
|
|
Three Months Ended |
||||||||||||||
(In USD millions) |
|
|
|
EMEA |
|
APAC |
|
Total |
||||||||
2023 |
|
$ 908.0 |
|
65.7 % |
|
$ 285.4 |
|
20.7 % |
|
$ 188.4 |
|
13.6 % |
|
$ 1,381.8 |
|
100.0 % |
Price |
|
(14.0) |
|
(1.6) % |
|
(9.5) |
|
(3.4) % |
|
(2.1) |
|
(1.1) % |
|
(25.6) |
|
(1.8) % |
Volume(1) |
|
(6.7) |
|
(0.7) % |
|
(7.5) |
|
(2.6) % |
|
7.9 |
|
4.2 % |
|
(6.3) |
|
(0.5) % |
Total constant dollar change (non-GAAP)(2) |
|
(20.7) |
|
(2.3) % |
|
(17.0) |
|
(6.0) % |
|
5.8 |
|
3.1 % |
|
(31.9) |
|
(2.3) % |
Foreign currency translation |
|
(11.3) |
|
(1.2) % |
|
4.7 |
|
1.7 % |
|
1.8 |
|
0.9 % |
|
(4.8) |
|
(0.4) % |
Total change (GAAP) |
|
(32.0) |
|
(3.5) % |
|
(12.3) |
|
(4.3) % |
|
7.6 |
|
4.0 % |
|
(36.7) |
|
(2.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
$ 876.0 |
|
65.1 % |
|
$ 273.1 |
|
20.3 % |
|
$ 196.0 |
|
14.6 % |
|
$ 1,345.1 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||||||||
(In USD millions) |
|
|
|
EMEA |
|
APAC |
|
Total |
||||||||
2023 |
|
$ 2,695.6 |
|
65.6 % |
|
$ 863.9 |
|
21.0 % |
|
$ 551.9 |
|
13.4 % |
|
$ 4,111.4 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price |
|
(76.2) |
|
(2.8) % |
|
(33.5) |
|
(3.9) % |
|
(4.8) |
|
(0.9) % |
|
(114.5) |
|
(2.8) % |
Volume(1) |
|
20.6 |
|
0.7 % |
|
(15.7) |
|
(1.8) % |
|
12.6 |
|
2.3 % |
|
17.5 |
|
0.4 % |
Total organic change (non-GAAP)(2) |
|
(55.6) |
|
(2.1) % |
|
(49.2) |
|
(5.7) % |
|
7.8 |
|
1.4 % |
|
(97.0) |
|
(2.4) % |
Acquisition |
|
17.2 |
|
0.7 % |
|
4.0 |
|
0.5 % |
|
2.3 |
|
0.4 % |
|
23.5 |
|
0.6 % |
Total constant dollar change (non-GAAP)(2) |
|
(38.4) |
|
(1.4) % |
|
(45.2) |
|
(5.2) % |
|
10.1 |
|
1.8 % |
|
(73.5) |
|
(1.8) % |
Foreign currency translation |
|
(6.6) |
|
(0.3) % |
|
1.7 |
|
0.2 % |
|
(13.2) |
|
(2.4) % |
|
(18.1) |
|
(0.4) % |
Total change (GAAP) |
|
(45.0) |
|
(1.7) % |
|
(43.5) |
|
(5.0) % |
|
(3.1) |
|
(0.6) % |
|
(91.6) |
|
(2.2) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
$ 2,650.6 |
|
65.9 % |
|
$ 820.4 |
|
20.4 % |
|
$ 548.8 |
|
13.7 % |
|
$ 4,019.8 |
|
100.0 % |
____________ |
|
(1) |
Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold. |
(2) |
Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation. |
Segment Information Reconciliation of Net Earnings to Non-GAAP Consolidated Adjusted EBITDA (Unaudited)
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In USD millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Adjusted EBITDA from continuing operations: |
|
|
|
|
|
|
|
|
Food |
|
$ 205.9 |
|
$ 194.3 |
|
$ 600.1 |
|
$ 580.1 |
Adjusted EBITDA Margin(1) |
|
22.9 % |
|
21.7 % |
|
22.6 % |
|
22.1 % |
Protective |
|
75.5 |
|
95.0 |
|
246.8 |
|
271.3 |
Adjusted EBITDA Margin(1) |
|
16.9 % |
|
19.5 % |
|
18.2 % |
|
18.3 % |
Corporate |
|
(5.4) |
|
(4.6) |
|
(7.1) |
|
(19.1) |
Non-GAAP Consolidated Adjusted EBITDA |
|
$ 276.0 |
|
$ 284.7 |
|
$ 839.8 |
|
$ 832.3 |
Adjusted EBITDA Margin(1) |
|
20.5 % |
|
20.6 % |
|
20.9 % |
|
20.2 % |
_________ |
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA divided by net sales. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In USD millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP Net earnings from continuing operations |
|
$ 88.7 |
|
$ 57.6 |
|
$ 269.9 |
|
$ 214.4 |
Interest expense, net |
|
60.5 |
|
70.1 |
|
188.9 |
|
196.6 |
Income tax provision |
|
30.7 |
|
20.3 |
|
104.1 |
|
99.4 |
Depreciation and amortization, net of adjustments(1) |
|
63.2 |
|
64.6 |
|
184.2 |
|
187.1 |
Special Items: |
|
|
|
|
|
|
|
|
Liquibox intangible amortization |
|
7.5 |
|
7.4 |
|
22.7 |
|
19.9 |
Liquibox inventory step-up expense |
|
— |
|
— |
|
— |
|
10.8 |
Restructuring charges |
|
6.8 |
|
9.8 |
|
24.8 |
|
9.2 |
Other restructuring associated costs |
|
9.0 |
|
34.6 |
|
22.2 |
|
34.5 |
Foreign currency exchange loss due to highly inflationary economies |
|
2.4 |
|
4.9 |
|
7.9 |
|
10.6 |
Loss on debt redemption and refinancing activities |
|
— |
|
— |
|
6.8 |
|
4.9 |
Contract terminations |
|
— |
|
15.3 |
|
(0.1) |
|
15.3 |
Charges related to acquisition and divestiture activity |
|
4.1 |
|
2.8 |
|
3.2 |
|
24.5 |
Other Special Items |
|
3.1 |
|
(2.7) |
|
5.2 |
|
5.1 |
Pre-tax impact of Special items |
|
32.9 |
|
72.1 |
|
92.7 |
|
134.8 |
Non-GAAP Consolidated Adjusted EBITDA |
|
$ 276.0 |
|
$ 284.7 |
|
$ 839.8 |
|
$ 832.3 |
__________ |
||||||||
(1) Depreciation and amortization by segment are as follows: |
||||||||
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In USD millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Food |
|
$ 47.9 |
|
$ 48.1 |
|
$ 141.1 |
|
$ 135.8 |
Protective |
|
22.8 |
|
23.9 |
|
65.8 |
|
71.2 |
Consolidated depreciation and amortization(i) |
|
$ 70.7 |
|
$ 72.0 |
|
$ 206.9 |
|
$ 207.0 |
Liquibox intangible amortization |
|
(7.5) |
|
(7.4) |
|
(22.7) |
|
(19.9) |
Depreciation and amortization, net of adjustments |
|
$ 63.2 |
|
$ 64.6 |
|
$ 184.2 |
|
$ 187.1 |
____________ |
|
(i) |
Includes share-based incentive compensation of |
The calculation of the non-GAAP Adjusted Tax Rate is as follows: |
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In USD millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP Earnings before income tax provision from continuing operations |
|
$ 119.4 |
|
$ 77.9 |
|
$ 374.0 |
|
$ 313.8 |
Pre-tax impact of Special Items |
|
32.9 |
|
72.1 |
|
92.7 |
|
134.8 |
Non-GAAP Adjusted Earnings before income tax provision |
|
$ 152.3 |
|
$ 150.0 |
|
$ 466.7 |
|
$ 448.6 |
|
|
|
|
|
|
|
|
|
GAAP Income tax provision from continuing operations |
|
$ 30.7 |
|
$ 20.3 |
|
$ 104.1 |
|
$ 99.4 |
Tax Special Items(1) |
|
(1.8) |
|
1.4 |
|
(8.6) |
|
(10.6) |
Tax impact of Special Items |
|
7.7 |
|
16.8 |
|
22.0 |
|
25.9 |
Non-GAAP Adjusted Income tax provision |
|
$ 36.6 |
|
$ 38.5 |
|
$ 117.5 |
|
$ 114.7 |
|
|
|
|
|
|
|
|
|
GAAP Effective income tax rate |
|
25.7 % |
|
26.1 % |
|
27.8 % |
|
31.7 % |
Non-GAAP Adjusted Tax Rate |
|
24.0 % |
|
25.7 % |
|
25.2 % |
|
25.6 % |
____________ |
|
(1) |
For the three and nine months ended |
Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-GAAP Adjusted Net Earnings and Non-GAAP Adjusted Net Earnings Per Common Share (Unaudited)
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
(In USD millions, except per share data) |
|
Net |
|
Diluted |
|
Net |
|
Diluted |
|
Net |
|
Diluted |
|
Net |
|
Diluted |
GAAP net earnings and |
|
$ 88.7 |
|
|
|
$ 57.6 |
|
$ 0.40 |
|
$ 269.9 |
|
|
|
$ 214.4 |
|
$ 1.48 |
Special Items(1) |
|
27.0 |
|
0.18 |
|
53.9 |
|
0.37 |
|
79.3 |
|
0.54 |
|
119.5 |
|
0.83 |
Non-GAAP adjusted net |
|
$ 115.7 |
|
|
|
$ 111.5 |
|
$ 0.77 |
|
$ 349.2 |
|
|
|
$ 333.9 |
|
$ 2.31 |
Weighted average number of |
|
|
|
146.1 |
|
|
|
144.9 |
|
|
|
145.8 |
|
|
|
144.8 |
___________ |
(1) Special Items include items in the table below. |
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In USD millions, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Special Items: |
|
|
|
|
|
|
|
|
Liquibox intangible amortization |
|
$ 7.5 |
|
$ 7.4 |
|
$ 22.7 |
|
$ 19.9 |
Liquibox inventory step-up expense |
|
— |
|
— |
|
— |
|
10.8 |
Restructuring charges |
|
6.8 |
|
9.8 |
|
24.8 |
|
9.2 |
Other restructuring associated costs(i) |
|
9.0 |
|
34.6 |
|
22.2 |
|
34.5 |
Foreign currency exchange loss due to highly inflationary economies |
|
2.4 |
|
4.9 |
|
7.9 |
|
10.6 |
Loss on debt redemption and refinancing activities |
|
— |
|
— |
|
6.8 |
|
4.9 |
Contract terminations(ii) |
|
— |
|
15.3 |
|
(0.1) |
|
15.3 |
Charges related to acquisition and divestiture activity(iii) |
|
4.1 |
|
2.8 |
|
3.2 |
|
24.5 |
Other Special Items(iv) |
|
3.1 |
|
(2.7) |
|
5.2 |
|
5.1 |
Pre-tax impact of Special Items |
|
32.9 |
|
72.1 |
|
92.7 |
|
134.8 |
Tax impact of Special Items and Tax Special Items |
|
(5.9) |
|
(18.2) |
|
(13.4) |
|
(15.3) |
Net impact of Special Items |
|
$ 27.0 |
|
$ 53.9 |
|
$ 79.3 |
|
$ 119.5 |
Weighted average number of common shares outstanding - Diluted |
|
146.1 |
|
144.9 |
|
145.8 |
|
144.8 |
Loss per share impact from Special Items |
|
$ (0.18) |
|
$ (0.37) |
|
$ (0.54) |
|
$ (0.83) |
____________ |
|
(i) |
Other restructuring associated costs for the three and nine months ended |
(ii) |
Contract terminations for the three and nine months ended |
(iii) |
Charges related to acquisition and divestiture activity for the three months ended |
(iv) |
Other Special Items for the three and nine months ended |
Calculation of Net Debt (Unaudited)
|
||||
(In USD millions) |
|
|
|
|
Short-term borrowings |
|
$ 139.7 |
|
$ 140.7 |
Current portion of long-term debt |
|
58.1 |
|
35.7 |
Long-term debt, less current portion |
|
4,334.0 |
|
4,513.9 |
Total debt |
|
4,531.8 |
|
4,690.3 |
Less: cash and cash equivalents |
|
(386.0) |
|
(346.1) |
Non-GAAP Net Debt |
|
$ 4,145.8 |
|
$ 4,344.2 |
|
|
|
|
|
Net Leverage Ratio (Net Debt / Last Twelve Months Adjusted EBITDA) |
|
3.7x |
|
3.9x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last Twelve Months Ended |
||
(In USD millions) |
|
|
|
|
GAAP Net earnings from continuing operations |
|
$ 394.8 |
|
$ 339.3 |
Interest expense, net |
|
255.3 |
|
263.0 |
Income tax provision |
|
95.1 |
|
90.4 |
Depreciation and amortization, net of adjustments |
|
236.7 |
|
239.6 |
Special Items: |
|
|
|
|
Liquibox intangible amortization |
|
30.7 |
|
27.9 |
Liquibox inventory step-up expense |
|
(0.6) |
|
10.2 |
Restructuring charges |
|
31.2 |
|
15.6 |
Other restructuring associated costs |
|
22.2 |
|
34.5 |
Foreign currency exchange loss due to highly inflationary economies |
|
20.4 |
|
23.1 |
Loss on debt redemption and refinancing activities |
|
15.1 |
|
13.2 |
Contract terminations |
|
(0.8) |
|
14.6 |
Charges related to acquisition and divestiture activity |
|
7.0 |
|
28.3 |
CEO severance |
|
6.1 |
|
6.1 |
Other Special Items |
|
0.9 |
|
0.8 |
Pre-tax impact of Special items |
|
132.2 |
|
174.3 |
Non-GAAP Consolidated Adjusted EBITDA |
|
$ 1,114.1 |
|
$ 1,106.6 |
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