|
|
(State or Other Jurisdiction of Incorporation)
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(I.R.S. Employer Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
||
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
Exhibit
Number |
|
Description
|
99.1
|
Press Release dated May 4, 2021
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
BERRY GLOBAL GROUP, INC. | |||
(Registrant) | |||
Dated: May 4, 2021
|
By:
|
/s/ Jason K. Greene |
|
Name: |
Jason K. Greene |
||
Title: |
Executive Vice President, Chief Legal Officer and Secretary | ||
|
News Release
|
|
|
Second Quarter Highlights
(all comparisons made to the March 2020 quarter)
|
•
|
Net sales of $3.4 billion, a 13 percent increase
|
•
|
5 percent organic volume growth
|
•
|
Operating income up 17 percent to $333 million
|
•
|
Operating EBITDA up 9 percent to $590 million
|
•
|
Net income per diluted share up 40 percent to $1.32
|
•
|
Adjusted net income per diluted share increase of 34 percent to $1.59
|
•
|
Raising fiscal 2021 operating EBITDA guidance from prior mid-point by $50 million to $2.25 billion
|
•
|
Increasing fiscal 2021 organic volume growth assumption from 4 percent to now 5 percent
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
April 3,
2021
|
March 28,
2020
|
April 3,
2021
|
March 28,
2020
|
|||||||||||||
Net sales
|
$
|
3,370
|
$
|
2,975
|
$
|
6,506
|
$
|
5,791
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
2,706
|
2,391
|
5,224
|
4,687
|
||||||||||||
Selling, general and administrative
|
220
|
204
|
461
|
433
|
||||||||||||
Amortization of intangibles
|
73
|
77
|
147
|
152
|
||||||||||||
Restructuring and transaction activities
|
38
|
19
|
37
|
36
|
||||||||||||
Operating income
|
333
|
284
|
637
|
483
|
||||||||||||
Other expense, net
|
6
|
—
|
31
|
13
|
||||||||||||
Interest expense, net
|
84
|
111
|
181
|
229
|
||||||||||||
Income before income taxes
|
243
|
173
|
425
|
241
|
||||||||||||
Income tax expense
|
62
|
47
|
114
|
68
|
||||||||||||
Net income
|
$
|
181
|
$
|
126
|
$
|
311
|
$
|
173
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
1.35
|
$
|
0.95
|
$
|
2.32
|
$
|
1.31
|
||||||||
Diluted
|
1.32
|
0.94
|
2.28
|
1.29
|
||||||||||||
Outstanding weighted-average shares: (in millions)
|
||||||||||||||||
Basic
|
134.3
|
132.4
|
133.9
|
132.4
|
||||||||||||
Diluted
|
136.8
|
134.1
|
136.6
|
134.2
|
||||||||||||
April 3, 2021
|
September 26, 2020
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
843
|
$
|
750
|
||||
Accounts receivable, net
|
1,682
|
1,469
|
||||||
Inventories
|
1,560
|
1,268
|
||||||
Other current assets
|
230
|
330
|
||||||
Property, plant, and equipment, net
|
4,675
|
4,561
|
||||||
Goodwill, intangible assets, and other long-term assets
|
8,273
|
8,323
|
||||||
Total assets
|
$
|
17,263
|
$
|
16,701
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
2,438
|
$
|
2,108
|
||||
Current and long-term debt
|
9,882
|
10,237
|
||||||
Other long-term liabilities
|
2,297
|
2,264
|
||||||
Stockholders’ equity
|
2,646
|
2,092
|
||||||
Total liabilities and stockholders' equity
|
$
|
17,263
|
$
|
16,701
|
Two Quarterly Periods Ended
|
||||||||
April 3, 2021
|
March 28, 2020
|
|||||||
Cash flows from operating activities:
|
||||||||
Net
cash from operating activities
|
638
|
533
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment, net
|
(364
|
)
|
(263
|
)
|
||||
Divestiture of businesses
|
143
|
—
|
||||||
Settlement of net investment hedges
|
—
|
246
|
||||||
Other investing activities
|
—
|
(10
|
)
|
|||||
Net cash from investing activities
|
(221
|
)
|
(27
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(2,683
|
)
|
(1,484
|
)
|
||||
Proceeds from long-term borrowings
|
2,316
|
1,202
|
||||||
Proceeds from issuance of common stock
|
39
|
3
|
||||||
Debt financing costs
|
(16
|
)
|
(17
|
)
|
||||
Net cash from financing activities
|
(344
|
)
|
(296
|
)
|
||||
Effect of currency translation on cash
|
20
|
(7
|
)
|
|||||
Net change in cash and cash equivalents
|
93
|
203
|
||||||
Cash and cash equivalents at beginning of period
|
750
|
750
|
||||||
Cash and cash equivalents at end of period
|
$
|
843
|
$
|
953
|
Quarterly Period Ended April 3, 2021
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,060
|
$
|
731
|
$
|
781
|
$
|
798
|
$
|
3,370
|
||||||||||
Operating income
|
$
|
59
|
$
|
77
|
$
|
114
|
$
|
83
|
$
|
333
|
||||||||||
Depreciation and amortization
|
87
|
54
|
42
|
29
|
212
|
|||||||||||||||
Restructuring and transaction activities (1)
|
38
|
—
|
—
|
—
|
38
|
|||||||||||||||
Other non-cash charges (2)
|
2
|
2
|
1
|
2
|
7
|
|||||||||||||||
Operating EBITDA
|
$
|
186
|
$
|
133
|
$
|
157
|
$
|
114
|
$
|
590
|
||||||||||
Quarterly Period Ended March 28, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
970
|
$
|
633
|
$
|
644
|
$
|
728
|
$
|
2,975
|
||||||||||
Operating income
|
$
|
53
|
$
|
69
|
$
|
66
|
$
|
96
|
$
|
284
|
||||||||||
Depreciation and amortization
|
79
|
60
|
46
|
28
|
213
|
|||||||||||||||
Restructuring and transaction activities (1)
|
14
|
3
|
1
|
1
|
19
|
|||||||||||||||
Other non-cash charges (2)
|
20
|
1
|
—
|
2
|
23
|
|||||||||||||||
Operating EBITDA
|
$
|
166
|
$
|
133
|
$
|
113
|
$
|
127
|
$
|
539
|
(1)
|
The current quarter primarily includes a loss on the sale of a divested businesses along with transaction activity costs related to the RPC
acquisition. The prior year quarter primarily includes transaction activity costs related to the RPC acquisition.
|
(2)
|
Other non-cash charges for the March 2021 quarter primarily include stock compensation expense of $7 million. The prior year quarter primarily includes
a $19 million inventory step-up related to the RPC acquisition and $5 million of stock compensation expense.
|
Quarterly Period Ended
|
Four Quarters Ended
|
|||||||||||
April 3, 2021
|
March 28, 2020
|
April 3, 2021
|
||||||||||
Net income
|
$
|
181
|
$
|
126
|
$
|
712
|
||||||
Add: other expense, net
|
6
|
—
|
49
|
|||||||||
Add: interest expense, net
|
84
|
111
|
387
|
|||||||||
Add: income tax expense
|
62
|
47
|
200
|
|||||||||
Operating income
|
$
|
333
|
$
|
284
|
$
|
1,348
|
||||||
Add: non-cash amortization from 2006 private sale
|
6
|
6
|
24
|
|||||||||
Add: restructuring and transaction activities (1)
|
38
|
19
|
63
|
|||||||||
Add: other non-cash charges (2)
|
7
|
23
|
42
|
|||||||||
Adjusted operating income (7)
|
$
|
384
|
$
|
332
|
$
|
1,477
|
||||||
Add: depreciation
|
139
|
136
|
548
|
|||||||||
Add: amortization of intangibles (3)
|
67
|
71
|
271
|
|||||||||
Operating EBITDA (7)
|
$
|
590
|
$
|
539
|
$
|
2,296
|
||||||
Add: unrealized synergies and divestiture (4)
|
(8
|
)
|
||||||||||
Adjusted EBITDA (7)
|
$
|
2,288
|
Cash flow from operating activities
|
$
|
1,635
|
||
Net additions to property, plant, and equipment
|
(684
|
)
|
||
Free cash flow (7)
|
$
|
951
|
||
Net income per diluted share
|
$
|
1.32
|
$
|
0.94
|
||||||||
Other expense, net
|
0.04
|
—
|
||||||||||
Non-cash amortization from 2006 private sale
|
0.04
|
0.05
|
||||||||||
Restructuring and transaction activities
|
0.28
|
0.14
|
||||||||||
Other non-cash charges (5)
|
—
|
0.14
|
||||||||||
Income tax impact on items above (6)
|
(0.09
|
)
|
(0.08
|
)
|
||||||||
Adjusted net income per diluted share (7)
|
$
|
1.59
|
$
|
1.19
|
Estimated
Fiscal 2021
|
||||||||||||
Cash flow from operating activities
|
$
|
1,575 - $1,675
|
||||||||||
Additions to property, plant, and equipment
|
(700
|
) |
||||||||||
Free cash flow (7)
|
$
|
875 - $975
|
||||||||||
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