Delaware | 1-12139 | 65-0654331 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2415 Cascade Pointe Boulevard | ||
Charlotte, North Carolina | 28208 | |
(Address of Principal Executive Offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Common Stock, par value $0.10 per share | SEE | New York Stock Exchange |
Exhibit Number | Description | |
99.1 |
SEALED AIR CORPORATION | ||
By: | /s/ James M. Sullivan | |
Name: | James M. Sullivan | |
Title: | Chief Financial Officer | |
Date: August 2, 2019 |
Exhibit 99.1 Sealed Air Corporation 2415 Cascade Pointe Blvd. Charlotte, NC 28208 |
• | Net Sales of $1.2 billion increased 1% as reported and 4% in constant dollars |
• | Net Earnings of $26 million or $0.16 per share, down 69% |
Adjusted Net Earnings of $125 million or $0.80 per share, up 25% | |
• | Reinvent SEE driving Adjusted EBITDA growth of 9% to $237 million |
Adjusted EBITDA margin expanded 160 bps to 20% of sales | |
• | Completes strategic acquisition of Automated Packaging Systems on August 1, 2019 |
• | Raises 2019 Adjusted EBITDA and Adjusted EPS guidance |
Date: | Friday, August 2, 2019 | |
Time: | 10:00 a.m. (ET) | |
Webcast: | www.sealedair.com/investors | |
Conference Dial In: | (855) 472-5411 (domestic) | |
(330) 863-3389 (international) | ||
Participant Code: | 4999788 |
Date: | Friday, August 2, 2019 at 1:00 p.m. (ET) through | |
Sunday, September 1, 2019 at 1:00 p.m. (ET) | ||
Webcast: | www.sealedair.com/investors | |
Conference Dial In: | (855) 859-2056 (domestic) | |
(404) 537-3406 (international) | ||
Participant Code: | 4999788 |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | |||||||||||||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | 1,161.0 | $ | 1,155.2 | $ | 2,273.7 | $ | 2,286.2 | ||||||||
Cost of sales | 782.7 | 791.7 | 1,530.2 | 1,548.7 | ||||||||||||
Gross profit | 378.3 | 363.5 | 743.5 | 737.5 | ||||||||||||
Selling, general and administrative expenses | 266.2 | 192.8 | 478.3 | 386.8 | ||||||||||||
Amortization expense of intangible assets acquired | 4.4 | 3.4 | 9.0 | 7.3 | ||||||||||||
Restructuring charges | 29.3 | 7.1 | 36.7 | 15.7 | ||||||||||||
Operating profit | 78.4 | 160.2 | 219.5 | 327.7 | ||||||||||||
Interest expense, net | (43.2 | ) | (44.5 | ) | (88.1 | ) | (86.5 | ) | ||||||||
Foreign currency exchange loss due to highly inflationary economies | (1.3 | ) | — | (2.1 | ) | — | ||||||||||
Other income (expense), net | 3.9 | 1.1 | 3.2 | (10.9 | ) | |||||||||||
Earnings before income tax provision | 37.8 | 116.8 | 132.5 | 230.3 | ||||||||||||
Income tax provision | 12.3 | 33.5 | 42.7 | 355.0 | ||||||||||||
Net earnings (loss) from continuing operations | 25.5 | 83.3 | 89.8 | (124.7 | ) | |||||||||||
Gain on sale of discontinued operations, net of tax | 7.7 | 31.1 | 0.9 | 38.5 | ||||||||||||
Net earnings (loss) | $ | 33.2 | $ | 114.4 | $ | 90.7 | $ | (86.2 | ) | |||||||
Basic: | ||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.52 | $ | 0.58 | $ | (0.77 | ) | |||||||
Discontinued operations | 0.06 | 0.19 | 0.01 | 0.24 | ||||||||||||
Net earnings (loss) per common share - basic | $ | 0.22 | $ | 0.71 | $ | 0.59 | $ | (0.53 | ) | |||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.52 | $ | 0.58 | $ | (0.77 | ) | |||||||
Discontinued operations | 0.05 | 0.19 | — | 0.24 | ||||||||||||
Net earnings (loss) per common share - diluted | $ | 0.21 | $ | 0.71 | $ | 0.58 | $ | (0.53 | ) | |||||||
Dividends per common share | $ | 0.16 | $ | 0.16 | $ | 0.32 | $ | 0.32 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 154.5 | 159.7 | 154.6 | 162.5 | ||||||||||||
Diluted | 155.3 | 160.6 | 155.3 | 162.5 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
(In millions) | June 30, 2019 (unaudited) | December 31, 2018 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 222.2 | $ | 271.7 | ||||
Trade receivables, net | 485.2 | 473.4 | ||||||
Income tax receivables | 53.4 | 58.4 | ||||||
Other receivables | 91.7 | 81.3 | ||||||
Inventories, net | 596.1 | 544.9 | ||||||
Current assets held for sale | 0.6 | 0.6 | ||||||
Prepaid expenses and other current assets | 127.4 | 124.5 | ||||||
Total current assets | 1,576.6 | 1,554.8 | ||||||
Property and equipment, net | 1,050.1 | 1,036.2 | ||||||
Goodwill | 1,957.2 | 1,947.6 | ||||||
Identifiable intangible assets, net | 100.5 | 101.7 | ||||||
Deferred taxes | 175.5 | 170.5 | ||||||
Other non-current assets | 356.6 | 239.4 | ||||||
Total assets | $ | 5,216.5 | $ | 5,050.2 | ||||
Liabilities and Stockholders' Deficit | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | 265.3 | $ | 232.8 | ||||
Current portion of long-term debt | 31.6 | 4.9 | ||||||
Accounts payable | 753.0 | 765.0 | ||||||
Accrued restructuring costs | 52.4 | 33.5 | ||||||
Income tax payable | 24.6 | 23.5 | ||||||
Other current liabilities | 460.5 | 428.9 | ||||||
Total current liabilities | 1,587.4 | 1,488.6 | ||||||
Long-term debt, less current portion | 3,291.7 | 3,236.5 | ||||||
Deferred taxes | 20.6 | 20.4 | ||||||
Other non-current liabilities | 658.0 | 653.3 | ||||||
Total liabilities | 5,557.7 | 5,398.8 | ||||||
Stockholders’ deficit: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 23.2 | 23.2 | ||||||
Additional paid-in capital | 2,053.0 | 2,049.6 | ||||||
Retained earnings | 1,876.4 | 1,835.5 | ||||||
Common stock in treasury | (3,382.4 | ) | (3,336.5 | ) | ||||
Accumulated other comprehensive loss, net of taxes | (911.4 | ) | (920.4 | ) | ||||
Total stockholders’ deficit | (341.2 | ) | (348.6 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 5,216.5 | $ | 5,050.2 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
June 30, 2019 (unaudited) | December 31, 2018 | |||||||
Short-term borrowings | $ | 265.3 | $ | 232.8 | ||||
Current portion of long-term debt | 31.6 | 4.9 | ||||||
Long-term debt, less current portion | 3,291.7 | 3,236.5 | ||||||
Total debt | 3,588.6 | 3,474.2 | ||||||
Less: cash and cash equivalents | (222.2 | ) | (271.7 | ) | ||||
Net Debt | $ | 3,366.4 | $ | 3,202.5 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
Six Months Ended June 30, (unaudited) | ||||||||
(In millions) | 2019 | 2018 | ||||||
Net earnings (loss) | $ | 90.7 | $ | (86.2 | ) | |||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities(2) | 89.7 | 121.9 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade receivables, net | (4.2 | ) | (24.2 | ) | ||||
Inventories, net | (48.2 | ) | (92.6 | ) | ||||
Accounts payable | (10.4 | ) | 58.7 | |||||
Income tax receivable/payable | 6.3 | 72.8 | ||||||
Other assets and liabilities | 45.4 | (13.8 | ) | |||||
Net cash provided by operating activities | $ | 169.3 | $ | 36.6 | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (94.5 | ) | (73.7 | ) | ||||
(Payments of) Proceeds from, net sale of business and property and equipment | (2.7 | ) | 8.3 | |||||
Businesses acquired, net of cash acquired | (23.1 | ) | — | |||||
Investment in cost method investments | — | (7.5 | ) | |||||
Settlement of foreign currency forward contracts | (4.1 | ) | (5.3 | ) | ||||
Other investing activities | — | (2.6 | ) | |||||
Net cash used in investing activities | $ | (124.4 | ) | $ | (80.8 | ) | ||
Cash flows from financing activities: | ||||||||
Changes in short term borrowings | 29.4 | 105.7 | ||||||
Payments of debt modification/extinguishment costs | — | (0.4 | ) | |||||
Dividends paid on common stock | (49.7 | ) | (54.0 | ) | ||||
Impact of tax withholding on share-based compensation | (10.6 | ) | (6.1 | ) | ||||
Repurchases of common stock | (67.3 | ) | (407.9 | ) | ||||
Net cash used in financing activities | $ | (98.2 | ) | $ | (362.7 | ) | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | $ | 3.8 | $ | (7.0 | ) | |||
Cash and cash equivalents | 271.7 | 594.0 | ||||||
Balance, beginning of period | $ | 271.7 | $ | 594.0 | ||||
Net change during the period | $ | (49.5 | ) | $ | (413.9 | ) | ||
Balance, end of period | $ | 222.2 | $ | 180.1 | ||||
Non-U.S. GAAP Free Cash Flow: | ||||||||
Cash flow from operating activities | $ | 169.3 | $ | 36.6 | ||||
Capital expenditures for property and equipment | (94.5 | ) | (73.7 | ) | ||||
Free Cash Flow | $ | 74.8 | $ | (37.1 | ) | |||
Supplemental Cash Flow Information: | ||||||||
Interest payments, net of amounts capitalized | $ | 95.6 | $ | 95.6 | ||||
Income tax payments, net of cash refunds | $ | 29.4 | $ | 97.1 | ||||
Payments related to the sale of Diversey | $ | — | $ | 32.5 | ||||
Restructuring payments including associated costs | $ | 49.2 | $ | 3.7 | ||||
Non-cash items: | ||||||||
Transfers of shares of common stock from treasury for 2018 and 2017 profit-sharing contributions | $ | 21.9 | $ | 23.8 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
(2) | 2019 adjustments primarily consist of depreciation and amortization of $66 million, share based compensation expense of $13 million, and profit sharing expense of $11 million. 2018 adjustments primarily consist of depreciation and amortization of $66 million, $51 million of deferred taxes, share-based compensation expense of $15 million and profit sharing expense of $10 million. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
(In millions, except per share data) | Net Earnings | Diluted EPS | Net Earnings | Diluted EPS | Net Earnings | Diluted EPS | Net (Loss) Earnings | Diluted EPS | ||||||||||||||||||||||||
U.S. GAAP net earnings (loss) and diluted EPS from continuing operations(2) | $ | 25.5 | $ | 0.16 | $ | 83.3 | $ | 0.52 | $ | 89.8 | $ | 0.58 | $ | (124.7 | ) | $ | (0.77 | ) | ||||||||||||||
Special Items(3) | 99.8 | 0.64 | 19.1 | 0.12 | 127.7 | 0.82 | 312.5 | 1.92 | ||||||||||||||||||||||||
Non-U.S. GAAP adjusted net earnings and adjusted diluted EPS from continuing operations | $ | 125.3 | $ | 0.80 | $ | 102.4 | $ | 0.64 | $ | 217.5 | $ | 1.40 | $ | 187.8 | $ | 1.15 | ||||||||||||||||
Weighted average number of common shares outstanding - Diluted | 155.3 | 160.6 | 155.3 | 162.5 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
(2) | Net earnings (loss) per common share is calculated under the two-class method. |
(3) | Special Items include the following: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Special Items: | ||||||||||||||||
Restructuring charges | $ | 29.3 | $ | 7.1 | $ | 36.7 | $ | 15.7 | ||||||||
Other restructuring associated costs(i) | 21.3 | (0.4 | ) | 38.0 | 1.8 | |||||||||||
Foreign currency exchange loss due to highly inflationary economies | 1.3 | — | 2.1 | — | ||||||||||||
(Income) charges related to acquisition and divestiture activity | (0.5 | ) | 7.0 | 3.2 | 17.8 | |||||||||||
Charges related to the Novipax Settlement Agreement | 59.0 | — | 59.0 | — | ||||||||||||
Loss (gain) from class-action litigation settlement | — | 0.1 | — | (12.6 | ) | |||||||||||
Other Special Items(ii) | 7.3 | 1.7 | 14.7 | 1.9 | ||||||||||||
Pre-tax impact of Special Items | 117.7 | 15.5 | 153.7 | 24.6 | ||||||||||||
Tax impact of Special Items and Tax Special Items(iii) | (17.9 | ) | 3.6 | (26.0 | ) | 287.9 | ||||||||||
Net impact of Special Items | $ | 99.8 | $ | 19.1 | $ | 127.7 | $ | 312.5 | ||||||||
Weighted average number of common shares outstanding - Diluted | 155.3 | 160.6 | 155.3 | 162.5 | ||||||||||||
Loss per share impact from Special Items | $ | (0.64 | ) | $ | (0.12 | ) | $ | (0.82 | ) | $ | (1.92 | ) |
(i) | Other restructuring associated costs for three and six months ended June 30, 2019, primarily relate to fees paid to third-party consultants in support of Reinvent SEE and costs related to property consolidations resulting from Reinvent SEE. |
(ii) | Other Special Items for the three and six months ended June 30, 2019, primarily included fees related to professional services. |
(iii) | Refer to Note 1 of the table below for a description of Special Items related to tax. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
U.S. GAAP Earnings before income tax provision from continuing operations | $ | 37.8 | $ | 116.8 | $ | 132.5 | $ | 230.3 | ||||||||
Pre-tax impact of special items | 117.7 | 15.5 | 153.7 | 24.6 | ||||||||||||
Non-U.S. GAAP Adjusted Earnings before income tax provision from continuing operations | $ | 155.5 | $ | 132.3 | $ | 286.2 | $ | 254.9 | ||||||||
U.S. GAAP Income tax provision from continuing operations | $ | 12.3 | $ | 33.5 | $ | 42.7 | $ | 355.0 | ||||||||
Tax Special Items(1) | (10.9 | ) | (6.7 | ) | (11.7 | ) | (293.9 | ) | ||||||||
Tax impact of Special Items | 28.8 | 3.1 | 37.7 | 6.0 | ||||||||||||
Non-U.S. GAAP Adjusted Income tax provision from continuing operations | $ | 30.2 | $ | 29.9 | $ | 68.7 | $ | 67.1 | ||||||||
U.S. GAAP Effective income tax rate | 32.5 | % | 28.7 | % | 32.2 | % | 154.1 | % | ||||||||
Non-U.S. GAAP Adjusted income tax rate | 19.4 | % | 22.6 | % | 24.0 | % | 26.3 | % |
(1) | For the three months ended June 30, 2019, the Tax Special Items include expense associated with a U.S audit assessment associated with foreign tax credit utilization in 2011. For the six months ended June 30, 2018, the Tax Special Items included $290 million of provisional tax expense for one-time tax on unrepatriated foreign earnings pursuant to the Tax Cut and Jobs Act ("TCJA"). |
(In millions) | Twelve Months Ended December 31, 2018 | |||
U.S. GAAP Net earnings per Audited Financial Statements | $ | 10.4 | ||
Interest expense, net | 1.0 | |||
Income tax provision | 2.5 | |||
Depreciation and amortization | 15.4 | |||
Special Items: | ||||
Employee stock ownership expenses (cease at closing)(2) | 14.4 | |||
Founding family costs (cease at closing) | 2.0 | |||
Transaction related expenses | 1.0 | |||
Gain related to successful patent litigation | (5.2 | ) | ||
Other | (1.4 | ) | ||
Pre-tax impact of Special Items | 10.8 | |||
Non-U.S. GAAP APS Adjusted EBITDA | $ | 40.1 |
(1) | Reconciliation is based on information provided to Sealed Air by Automated Packaging Systems. |
(2) | Employee stock ownership expense adjustment is shown net of estimated cost of Sealed Air 401(k) and profit sharing expenses. |
Three Months Ended June 30, | |||||||||||||||||||||
(In millions) | Food Care | Product Care | Total Company | ||||||||||||||||||
2018 Net Sales | $ | 713.0 | 61.7 | % | $ | 442.2 | 38.3 | % | $ | 1,155.2 | |||||||||||
Price | 9.5 | 1.3 | % | 2.4 | 0.5 | % | 11.9 | 1.0 | % | ||||||||||||
Volume(2) | 16.7 | 2.4 | % | (11.4 | ) | (2.5 | )% | 5.3 | 0.5 | % | |||||||||||
Total organic change (Non-U.S. GAAP)(3) | 26.2 | 3.7 | % | (9.0 | ) | (2.0 | )% | 17.2 | 1.5 | % | |||||||||||
Acquisitions | 3.0 | 0.4 | % | 26.4 | 5.9 | % | 29.4 | 2.5 | % | ||||||||||||
Total constant dollar change (Non-U.S. GAAP)(3) | 29.2 | 4.1 | % | 17.4 | 3.9 | % | 46.6 | 4.0 | % | ||||||||||||
Foreign currency translation | (31.2 | ) | (4.4 | )% | (9.6 | ) | (2.1 | )% | (40.8 | ) | (3.5 | )% | |||||||||
Total change (U.S. GAAP) | (2.0 | ) | (0.3 | )% | 7.8 | 1.8 | % | 5.8 | 0.5 | % | |||||||||||
2019 Net Sales | $ | 711.0 | 61.2 | % | $ | 450.0 | 38.8 | % | $ | 1,161.0 |
Six Months Ended June 30, | |||||||||||||||||||||
(In millions) | Food Care | Product Care | Total Company | ||||||||||||||||||
2018 Net Sales | $ | 1,409.3 | 61.6 | % | $ | 876.9 | 38.4 | % | $ | 2,286.2 | |||||||||||
Price | 30.5 | 2.1 | % | 6.5 | 0.7 | % | 37.0 | 1.6 | % | ||||||||||||
Volume(2) | 19.5 | 1.4 | % | (30.5 | ) | (3.4 | )% | (11.0 | ) | (0.5 | )% | ||||||||||
Total organic change (non-U.S. GAAP)(3) | 50.0 | 3.5 | % | (24.0 | ) | (2.7 | )% | 26.0 | 1.1 | % | |||||||||||
Acquisitions | 3.0 | 0.3 | % | 52.1 | 5.9 | % | 55.1 | 2.4 | % | ||||||||||||
Total constant dollar change (non-U.S. GAAP)(3) | 53.0 | 3.8 | % | 28.1 | 3.2 | % | 81.1 | 3.5 | % | ||||||||||||
Foreign currency translation | (71.3 | ) | (5.1 | )% | (22.3 | ) | (2.5 | )% | (93.6 | ) | (4.0 | )% | |||||||||
Total change (U.S. GAAP) | (18.3 | ) | (1.3 | )% | 5.8 | 0.7 | % | (12.5 | ) | (0.5 | )% | ||||||||||
2019 Net Sales | $ | 1,391.0 | 61.2 | % | $ | 882.7 | 38.8 | % | $ | 2,273.7 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly report on Form 10-Q with the Securities and Exchange Commission. |
(2) | 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. |
(3) | Total organic change is a non-U.S. GAAP financial measure which excludes acquisition and divestiture activity and the impact of foreign currency translation. Total constant dollar change is a non-U.S. GAAP financial measure which excludes the impact of foreign currency translation. Since we are a U.S. domiciled company, we translate our foreign currency denominated financial results into U.S. dollars. Due to changes in the value of foreign currencies relative to the U.S. dollar, translating our financial results from foreign currencies to U.S. dollars may result in a favorable or unfavorable impact. It is important that we consider the effects of foreign currency translation when we view our results and plan our strategies. Nonetheless, we cannot control changes in foreign currency exchange rates. Consequently, when our management looks at our financial results to measure the core performance of our business, we exclude the impact of foreign currency translation by translating our current period results at prior period foreign currency exchange rates. We also may exclude the impact of foreign currency translation when making incentive compensation determinations. As a result, our management believes that these presentations are useful internally and may be useful to our investors. |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In millions) | North America(2) | EMEA(2) | South America(2) | APAC(2) | Total | ||||||||||||||||||||||||||||||
2018 Net Sales | $ | 660.2 | 57.2 | % | $ | 262.5 | 22.7 | % | $ | 55.3 | 4.8 | % | $ | 177.2 | 15.3 | % | $ | 1,155.2 | |||||||||||||||||
Price | (2.7 | ) | (0.4 | )% | 0.7 | 0.3 | % | 13.7 | 24.8 | % | 0.2 | 0.1 | % | 11.9 | 1.0 | % | |||||||||||||||||||
Volume(3) | 10.9 | 1.6 | % | (1.4 | ) | (0.6 | )% | 2.9 | 5.2 | % | (7.1 | ) | (4.0 | )% | 5.3 | 0.5 | % | ||||||||||||||||||
Total organic change (Non-U.S. GAAP)(4) | 8.2 | 1.2 | % | (0.7 | ) | (0.3 | )% | 16.6 | 30.0 | % | (6.9 | ) | (3.9 | )% | 17.2 | 1.5 | % | ||||||||||||||||||
Acquisitions | 21.3 | 3.3 | % | — | — | % | — | — | % | 8.1 | 4.6 | % | 29.4 | 2.5 | % | ||||||||||||||||||||
Total constant dollar change (Non-U.S. GAAP)(4) | 29.5 | 4.5 | % | (0.7 | ) | (0.3 | )% | 16.6 | 30.0 | % | 1.2 | 0.7 | % | 46.6 | 4.0 | % | |||||||||||||||||||
Foreign currency translation | (1.1 | ) | (0.2 | )% | (15.2 | ) | (5.8 | )% | (15.7 | ) | (28.4 | )% | (8.8 | ) | (5.0 | )% | (40.8 | ) | (3.5 | )% | |||||||||||||||
Total change (U.S. GAAP) | 28.4 | 4.3 | % | (15.9 | ) | (6.1 | )% | 0.9 | 1.6 | % | (7.6 | ) | (4.3 | )% | 5.8 | 0.5 | % | ||||||||||||||||||
2019 Net Sales | $ | 688.6 | 59.3 | % | $ | 246.6 | 21.2 | % | $ | 56.2 | 4.8 | % | $ | 169.6 | 14.6 | % | $ | 1,161.0 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In millions) | North America(2) | EMEA(2) | South America(2) | APAC(2) | Total | ||||||||||||||||||||||||||||||
2018 Net Sales | $ | 1,299.2 | 56.8 | % | $ | 520.4 | 22.8 | % | $ | 114.3 | 5.0 | % | $ | 352.3 | 15.4 | % | $ | 2,286.2 | |||||||||||||||||
Price | 6.0 | 0.4 | % | 2.2 | 0.4 | % | 28.5 | 24.9 | % | 0.3 | 0.1 | % | 37.0 | 1.6 | % | ||||||||||||||||||||
Volume(3) | (2.9 | ) | (0.2 | )% | (4.4 | ) | (0.8 | )% | 2.8 | 2.5 | % | (6.5 | ) | (1.9 | )% | (11.0 | ) | (0.5 | )% | ||||||||||||||||
Total organic change (non-U.S. GAAP)(4) | 3.1 | 0.2 | % | (2.2 | ) | (0.4 | )% | 31.3 | 27.4 | % | (6.2 | ) | (1.8 | )% | 26.0 | 1.1 | % | ||||||||||||||||||
Acquisitions | 42.6 | 3.3 | % | — | — | % | — | — | % | 12.5 | 3.6 | % | 55.1 | 2.4 | % | ||||||||||||||||||||
Total constant dollar change (non-U.S. GAAP)(4) | 45.7 | 3.5 | % | (2.2 | ) | (0.4 | )% | 31.3 | 27.4 | % | 6.3 | 1.8 | % | 81.1 | 3.5 | % | |||||||||||||||||||
Foreign currency translation | (4.1 | ) | (0.3 | )% | (35.8 | ) | (6.9 | )% | (34.6 | ) | (30.3 | )% | (19.1 | ) | (5.4 | )% | (93.6 | ) | (4.0 | )% | |||||||||||||||
Total change (U.S. GAAP) | 41.6 | 3.2 | % | (38.0 | ) | (7.3 | )% | (3.3 | ) | (2.9 | )% | (12.8 | ) | (3.6 | )% | (12.5 | ) | (0.5 | )% | ||||||||||||||||
2019 Net Sales | $ | 1,340.8 | 59.0 | % | $ | 482.4 | 21.2 | % | $ | 111.0 | 4.9 | % | $ | 339.5 | 14.9 | % | $ | 2,273.7 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
(2) | As part of the Company's Reinvent SEE strategy, we have evaluated and adjusted our regional operating model. Effective January 1, 2019, our regions are: North America, EMEA, South America and APAC. Our North American operations includes Canada, the United States, Mexico and Central America. Mexico and Central America were previously included in Latin America. EMEA consists of Europe, Middle East, Africa and Turkey. APAC refers to our collective Asia Pacific region, including Greater China, India, Southeast Asia, Japan, Korea, Australia and New Zealand. |
(3) | 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. |
(4) | Total organic change is a non-U.S. GAAP financial measure which excludes acquisition and divestiture activity and the impact of foreign currency translation. Total constant dollar change is a non-U.S. GAAP financial measure which excludes the impact of foreign currency translation. Since we are a U.S. domiciled company, we translate our foreign currency denominated financial results into U.S. dollars. Due to changes in the value of foreign currencies relative to the U.S. dollar, translating our financial results from foreign currencies to U.S. dollars may result in a favorable or unfavorable impact. It is important that we take into account the effects of |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Sales: | ||||||||||||||||
Food Care | $ | 711.0 | $ | 713.0 | $ | 1,391.0 | $ | 1,409.3 | ||||||||
As a % of Total Company net sales | 61.2 | % | 61.7 | % | 61.2 | % | 61.6 | % | ||||||||
Product Care | 450.0 | 442.2 | 882.7 | 876.9 | ||||||||||||
As a % of Total Company net sales | 38.8 | % | 38.3 | % | 38.8 | % | 38.4 | % | ||||||||
Total Company Net Sales | $ | 1,161.0 | $ | 1,155.2 | $ | 2,273.7 | $ | 2,286.2 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Adjusted EBITDA from continuing operations: | ||||||||||||||||
Food Care | $ | 155.6 | $ | 135.4 | $ | 298.5 | $ | 270.1 | ||||||||
Adjusted EBITDA Margin | 21.9 | % | 19.0 | % | 21.5 | % | 19.2 | % | ||||||||
Product Care | 84.0 | 78.5 | 159.0 | 156.9 | ||||||||||||
Adjusted EBITDA Margin | 18.7 | % | 17.8 | % | 18.0 | % | 17.9 | % | ||||||||
Corporate | (2.9 | ) | 3.6 | (5.0 | ) | (4.7 | ) | |||||||||
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | $ | 236.7 | $ | 217.5 | $ | 452.5 | $ | 422.3 | ||||||||
Adjusted EBITDA Margin | 20.4 | % | 18.8 | % | 19.9 | % | 18.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
U.S. GAAP Net earnings (loss) from continuing operations | $ | 25.5 | $ | 83.3 | $ | 89.8 | $ | (124.7 | ) | |||||||
Interest expense, net | 43.2 | 44.5 | 88.1 | 86.5 | ||||||||||||
Income tax provision | 12.3 | 33.5 | 42.7 | 355.0 | ||||||||||||
Depreciation and amortization, net of adjustments(2) | 38.0 | 40.7 | 78.2 | 80.9 | ||||||||||||
Special Items: | ||||||||||||||||
Restructuring charges(3) | 29.3 | 7.1 | 36.7 | 15.7 | ||||||||||||
Other restructuring associated costs(4) | 21.3 | (0.4 | ) | 38.0 | 1.8 | |||||||||||
Foreign currency exchange loss due to highly inflationary economies | 1.3 | — | 2.1 | — | ||||||||||||
(Income) charges related to acquisition and divestiture activity | (0.5 | ) | 7.0 | 3.2 | 17.8 | |||||||||||
Charges related to the Novipax Settlement Agreement | 59.0 | — | 59.0 | — | ||||||||||||
Loss (gain) from class-action litigation settlement | — | 0.1 | — | (12.6 | ) | |||||||||||
Other Special Items(5) | 7.3 | 1.7 | 14.7 | 1.9 | ||||||||||||
Pre-tax impact of Special items | 117.7 | 15.5 | 153.7 | 24.6 | ||||||||||||
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | $ | 236.7 | $ | 217.5 | $ | 452.5 | $ | 422.3 |
(1) | The supplementary information included in this press release for 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
(2) | Depreciation and amortization by segment are as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Food Care | $ | 25.0 | $ | 27.2 | $ | 51.2 | $ | 54.1 | ||||||||
Product Care | 13.1 | 13.6 | 28.0 | 27.1 | ||||||||||||
Total Company depreciation and amortization(i) | 38.1 | 40.8 | 79.2 | 81.2 | ||||||||||||
Depreciation and amortization adjustments | (0.1 | ) | (0.1 | ) | (1.0 | ) | (0.3 | ) | ||||||||
Depreciation and amortization, net of adjustments | $ | 38.0 | $ | 40.7 | $ | 78.2 | $ | 80.9 |
(i) | Includes share-based incentive compensation of $4.8 million and $13.2 million for the three and six months ended June 30, 2019, respectively, and $7.7 million and $15.3 million for the three and six months ended June 30, 2018, respectively. |
(3) | Restructuring charges by segment is as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Food Care | $ | 18.6 | $ | 1.5 | $ | 22.4 | $ | 6.1 | ||||||||
Product Care | 10.7 | 5.6 | 14.3 | 9.6 | ||||||||||||
Total Company restructuring charges | $ | 29.3 | $ | 7.1 | $ | 36.7 | $ | 15.7 |
(4) | Other restructuring associated costs for three and six months ended June 30, 2019, primarily relate to fees paid to third-party consultants in support of Reinvent SEE and costs related to property consolidations resulting from Reinvent SEE. |
(5) | Other Special Items for the three and six months ended June 30, 2019 primarily included fees related to professional services. |
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