Reynolds Consumer Products Reports Third Quarter 2023 Financial Results
- 63% increase in net income and 42% increase in adjusted EBITDA over Q3 2022.
- Operating cash flow of $423 million in the first nine months of 2023 represents a $305 million increase compared to the same period in the prior year.
- Net debt to trailing twelve months Adjusted EBITDA improved from 3.8x on December 31, 2022, to 3.1x on September 30, 2023.
- Acquisition of Atacama Manufacturing adds significant materials development expertise and innovation capabilities for future growth in sustainable products.
- Hefty Waste & Storage and Hefty Tableware segments experienced increases in adjusted EBITDA despite net revenue decreases.
- Net revenues decreased by 3% from Q3 2022 to Q3 2023.
- Volume decreased in Hefty Tableware and Presto Products segments.
Accelerating Margins and Updating Earnings Estimates
Generating Strong Cash Flow and Improving Leverage
Gaining Product Category Share
Third Quarter 2023 Highlights
-
Net Revenues of
$935 million $967 million 3% -
Net Income of
$78 million $48 million 63% , and$268 million -
Adjusted EBITDA of
$165 million $116 million 42% , and$598 million -
Earnings Per Share of
$0.37 $0.23 61%
Adjusted Earnings Per Share of$0.37 $0.24 54% -
Operating Cash Flow of
$423 million $118 million
Net Income and Adjusted EBITDA increased
Operating cash flow of
“RCP continues to perform very effectively in a dynamic operating environment, and I am extremely proud of all that our team has accomplished,” said Lance Mitchell, President and Chief Executive Officer. “We accelerated margin expansion and delivered earnings at the upper end of our guide driven by market share gains, continued execution of the Reynolds Cooking & Baking recovery plan and significant improvements in profitability of our other businesses. We are converting more of our earnings to cash through ongoing initiatives to reduce working capital and continued capital spending discipline. As a result, we anticipate 2023 earnings at the high end of our previous range and expect to return to leverage below three times Adjusted EBITDA by year end.”
On November 6, 2023, the Company acquired the privately held Atacama Manufacturing. Atacama Manufacturing is an innovation driven company that designs, formulates, manufactures and commercializes products that include recycled or renewable, plant-based materials. The Company is pleased to add significant materials development expertise and innovation capabilities as we pursue future growth in sustainable products.
Reynolds Cooking & Baking
-
Net revenues decreased
$15 million 5% , to$312 million -
Adjusted EBITDA increased
$18 million 55% , to$51 million
Adjusted EBITDA increased
Implementation of the Reynolds Cooking & Baking recovery plan continues to progress exceptionally well. In the third quarter, the Company again achieved volume, operational and gross profit objectives established at the start of the year driven by commercial initiatives and execution of comprehensive plans to strengthen manufacturing consistency and reliability.
Volume was down
Hefty Waste & Storage
-
Net revenues increased
$7 million 3% , to$244 million -
Adjusted EBITDA increased
$27 million 61% , to$71 million
Adjusted EBITDA increased
Volume increased
Hefty launched a new product entry in the food bag segment with a press-to-close bag available in multiple sizes.
Hefty Tableware
-
Net revenues decreased
$18 million 7% , to$233 million -
Adjusted EBITDA increased
$17 million 71% , to$41 million
Adjusted EBITDA increased
Volume decreased
Hefty® Zoo Pals™ plates were reintroduced resulting in widespread media coverage including over 3 billion social media impressions following the online only relaunch.
Presto Products
-
Net revenues decreased
$3 million 2% , to$152 million -
Adjusted EBITDA increased
$8 million 35% , to$31 million
Adjusted EBITDA increased
Volume decreased
Year to Date 2023 Highlights
-
Net Revenues of
$2,750 million 1% over comparable prior year period -
Net Income of
$161 million $152 million -
Adjusted EBITDA of
$398 million $346 million -
Earnings Per Share of
$0.77 $0.72 $0.77 $0.76
Net income increased
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were
During the third quarter of 2023, the Company made a voluntary principal payment of
Capital expenditures were
Operating cash flow of
Fiscal Year and Fourth Quarter Outlook
The Company expects the following results for its fiscal year and fourth quarter ending December 31, 2023:
|
Prior Full Year 2023 Outlook |
Updated Full Year 2023 Outlook |
|
Net revenues |
+/- |
- |
|
Net income⁽¹⁾ |
|
|
|
Adjusted EBITDA |
|
|
|
Earnings per share⁽¹⁾ |
|
|
|
Net debt |
|
|
Q4 2023 Outlook |
|
Net revenues |
- |
Net income⁽¹⁾ |
|
Adjusted EBITDA |
|
Earnings per share⁽¹⁾ |
|
| (1) | The Company is not providing projected adjusted net income or adjusted earnings per share, as it does not anticipate using or presenting such non-GAAP metrics in these periods. |
Commodity costs remain broadly consistent with Company expectations when it reported second quarter 2023 results.
The Company expects fourth quarter net revenues to be approximately
-
Consolidated retail volume is estimated to be down
2% to4% , consisting of stable to growing volume in the Company’s three largest categories (aluminum foil, waste bags and food bags) and lower disposable tableware volume driven by category elasticity. - Hefty is holding share in relevant disposable tableware segments and is stimulating consumer demand through a series of measures including increases in planned advertising, adjustments to planned promotions and smaller pack sizes.
-
Consolidated non-retail sales are estimated to be down
$40 million $75 million
The Company expects full-year net revenues to be approximately
-
Consolidated retail volume is estimated to be down
2% from consolidated retail volume in the prior year. -
Consolidated non-retail sales are estimated to be down
$70 million $268 million
“I am pleased to welcome Scott Huckins to the RCP team and look forward to partnering with him as he becomes our next Chief Financial Officer, effective November 13, 2023, and through my retirement early next year,” said Michael Graham, Chief Financial Officer. “Scott enters RCP at a great moment in the history of our company. Our balance sheet is strong, our earnings and cash flow are growing and we have significant opportunities for additional growth.”
Quarterly Dividend
The Company’s Board of Directors has approved a quarterly dividend of
Earnings Webcast
The Company will host a live webcast this morning at 7:00 a.m. CT (8:00 a.m. ET). A link to the webcast and all related earnings materials will be available on the Company’s Investor Relations website at https://investors.reynoldsconsumerproducts.com.
About Reynolds Consumer Products Inc.
Reynolds Consumer Products is a leading provider of household products that simplify daily life so consumers can enjoy what matters most. With a presence in
Forward Looking Statements
This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including our fourth quarter and fiscal year 2023 guidance. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “intends,” “outlook,” “forecast”, “position”, “committed,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “model”, “assumes,” “confident,” “look forward,” “potential” “on track”, or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and recovery of profitability, management of costs and other disruptions and other strategies, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q.
For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
REYN-F
Reynolds Consumer Products Inc. Consolidated Statements of Income (amounts in millions, except for per share data) |
|||||||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenues |
$ |
914 |
|
|
$ |
938 |
|
|
$ |
2,689 |
|
|
$ |
2,652 |
|
Related party net revenues |
|
21 |
|
|
|
29 |
|
|
|
61 |
|
|
|
77 |
|
Total net revenues |
|
935 |
|
|
|
967 |
|
|
|
2,750 |
|
|
|
2,729 |
|
Cost of sales |
|
(686 |
) |
|
|
(789 |
) |
|
|
(2,117 |
) |
|
|
(2,199 |
) |
Gross profit |
|
249 |
|
|
|
178 |
|
|
|
633 |
|
|
|
530 |
|
Selling, general and administrative expenses |
|
(115 |
) |
|
|
(90 |
) |
|
|
(327 |
) |
|
|
(264 |
) |
Other income (expense), net |
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(17 |
) |
Income from operations |
|
134 |
|
|
|
83 |
|
|
|
306 |
|
|
|
249 |
|
Interest expense, net |
|
(31 |
) |
|
|
(20 |
) |
|
|
(91 |
) |
|
|
(48 |
) |
Income before income taxes |
|
103 |
|
|
|
63 |
|
|
|
215 |
|
|
|
201 |
|
Income tax expense |
|
(25 |
) |
|
|
(15 |
) |
|
|
(54 |
) |
|
|
(49 |
) |
Net income |
$ |
78 |
|
|
$ |
48 |
|
|
$ |
161 |
|
|
$ |
152 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.37 |
|
|
$ |
0.23 |
|
|
$ |
0.77 |
|
|
$ |
0.72 |
|
Diluted |
$ |
0.37 |
|
|
$ |
0.23 |
|
|
$ |
0.77 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
210.0 |
|
|
|
209.9 |
|
|
|
210.0 |
|
|
|
209.8 |
|
Diluted |
|
210.0 |
|
|
|
209.9 |
|
|
|
210.0 |
|
|
|
209.9 |
|
Reynolds Consumer Products Inc. Consolidated Balance Sheets (amounts in millions, except for per share data) |
|||||
|
(Unaudited) |
|
|
||
|
As of September 30,
|
|
As of December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
124 |
|
$ |
38 |
Accounts receivable (net of allowance for doubtful accounts of |
|
345 |
|
|
348 |
Other receivables |
|
4 |
|
|
15 |
Related party receivables |
|
9 |
|
|
7 |
Inventories |
|
576 |
|
|
722 |
Other current assets |
|
48 |
|
|
41 |
Total current assets |
|
1,106 |
|
|
1,171 |
Property, plant and equipment (net of accumulated depreciation of |
|
719 |
|
|
722 |
Operating lease right-of-use assets, net |
|
57 |
|
|
65 |
Goodwill |
|
1,879 |
|
|
1,879 |
Intangible assets, net |
|
1,009 |
|
|
1,031 |
Other assets |
|
68 |
|
|
61 |
Total assets |
$ |
4,838 |
|
$ |
4,929 |
Liabilities |
|
|
|
||
Accounts payable |
$ |
237 |
|
$ |
252 |
Related party payables |
|
30 |
|
|
46 |
Current portion of long-term debt |
|
— |
|
|
25 |
Current operating lease liabilities |
|
16 |
|
|
14 |
Income taxes payable |
|
1 |
|
|
14 |
Accrued and other current liabilities |
|
183 |
|
|
145 |
Total current liabilities |
|
467 |
|
|
496 |
Long-term debt |
|
1,981 |
|
|
2,066 |
Long-term operating lease liabilities |
|
44 |
|
|
53 |
Deferred income taxes |
|
364 |
|
|
365 |
Long-term postretirement benefit obligation |
|
34 |
|
|
34 |
Other liabilities |
|
56 |
|
|
47 |
Total liabilities |
$ |
2,946 |
|
$ |
3,061 |
Stockholders’ equity |
|
|
|
||
Common stock, outstanding |
|
— |
|
|
— |
Additional paid-in capital |
|
1,392 |
|
|
1,385 |
Accumulated other comprehensive income |
|
52 |
|
|
52 |
Retained earnings |
|
448 |
|
|
431 |
Total stockholders’ equity |
|
1,892 |
|
|
1,868 |
Total liabilities and stockholders’ equity |
$ |
4,838 |
|
$ |
4,929 |
Reynolds Consumer Products Inc. Consolidated Statements of Cash Flows (amounts in millions) |
|||||||
|
Nine Months Ended
|
||||||
|
2023 |
|
2022 |
||||
Cash provided by operating activities |
|
|
|
||||
Net income |
$ |
161 |
|
|
$ |
152 |
|
Adjustments to reconcile net income to operating cash flows: |
|
|
|
||||
Depreciation and amortization |
|
92 |
|
|
|
87 |
|
Deferred income taxes |
|
(3 |
) |
|
|
(1 |
) |
Stock compensation expense |
|
10 |
|
|
|
4 |
|
Change in assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
3 |
|
|
|
27 |
|
Other receivables |
|
11 |
|
|
|
— |
|
Related party receivables |
|
(2 |
) |
|
|
— |
|
Inventories |
|
146 |
|
|
|
(213 |
) |
Accounts payable |
|
(5 |
) |
|
|
40 |
|
Related party payables |
|
(16 |
) |
|
|
6 |
|
Income taxes payable / receivable |
|
(11 |
) |
|
|
— |
|
Accrued and other current liabilities |
|
39 |
|
|
|
23 |
|
Other assets and liabilities |
|
(2 |
) |
|
|
(7 |
) |
Net cash provided by operating activities |
|
423 |
|
|
|
118 |
|
Cash used in investing activities |
|
|
|
||||
Acquisition of property, plant and equipment |
|
(77 |
) |
|
|
(86 |
) |
Net cash used in investing activities |
|
(77 |
) |
|
|
(86 |
) |
Cash used in financing activities |
|
|
|
||||
Repayment of long-term debt |
|
(113 |
) |
|
|
(19 |
) |
Dividends paid |
|
(144 |
) |
|
|
(144 |
) |
Other financing activities |
|
(3 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(260 |
) |
|
|
(163 |
) |
Net increase (decrease) in cash and cash equivalents |
|
86 |
|
|
|
(131 |
) |
Cash and cash equivalents at beginning of period |
|
38 |
|
|
|
164 |
|
Cash and cash equivalents at end of period |
$ |
124 |
|
|
$ |
33 |
|
|
|
|
|
||||
Cash paid: |
|
|
|
||||
Interest |
|
86 |
|
|
|
42 |
|
Income taxes |
|
65 |
|
|
|
49 |
|
Reynolds Consumer Products Inc. Segment Results (amounts in millions) |
||||||||||||||||||
|
Reynolds
|
|
Hefty
|
|
Hefty
|
|
Presto
|
|
Unallocated(1) |
|
Total |
|||||||
Revenues |
|
|||||||||||||||||
Three Months Ended September 30, 2023 |
$ |
312 |
|
$ |
244 |
|
$ |
233 |
|
$ |
152 |
|
$ |
(6 |
) |
|
$ |
935 |
Three Months Ended September 30, 2022 |
|
327 |
|
|
237 |
|
|
251 |
|
|
155 |
|
|
(3 |
) |
|
|
967 |
Nine Months Ended September 30, 2023 |
|
916 |
|
|
705 |
|
|
708 |
|
|
441 |
|
|
(20 |
) |
|
|
2,750 |
Nine Months Ended September 30, 2022 |
|
889 |
|
|
704 |
|
|
701 |
|
|
447 |
|
|
(12 |
) |
|
|
2,729 |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Months Ended September 30, 2023 |
$ |
51 |
|
$ |
71 |
|
$ |
41 |
|
$ |
31 |
|
$ |
(29 |
) |
|
$ |
165 |
Three Months Ended September 30, 2022 |
|
33 |
|
|
44 |
|
|
24 |
|
|
23 |
|
|
(8 |
) |
|
|
116 |
Nine Months Ended September 30, 2023 |
|
94 |
|
|
188 |
|
|
117 |
|
|
78 |
|
|
(79 |
) |
|
|
398 |
Nine Months Ended September 30, 2022 |
|
97 |
|
|
135 |
|
|
72 |
|
|
67 |
|
|
(25 |
) |
|
|
346 |
| (1) | The unallocated net revenues include elimination of inter-segment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments. |
Components of Change in Net Revenues for the Three Months Ended September 30, 2023 vs. the Three Months Ended September 30, 2022 |
|||||||||
|
Price |
|
Volume/Mix |
|
Total |
|
|||
Reynolds Cooking & Baking |
(2 |
) |
% |
(3 |
) |
% |
(5 |
) |
% |
Hefty Waste & Storage |
2 |
|
% |
1 |
|
% |
3 |
|
% |
Hefty Tableware |
4 |
|
% |
(11 |
) |
% |
(7 |
) |
% |
Presto Products |
1 |
|
% |
(3 |
) |
% |
(2 |
) |
% |
Total RCP |
1 |
|
% |
(4 |
) |
% |
(3 |
) |
% |
Components of Change in Net Revenues for the Nine Months Ended September 30, 2023 vs. the Nine Months Ended September 30, 2022 |
|||||||||
|
Price |
|
Volume/Mix |
|
Total |
|
|||
Reynolds Cooking & Baking |
(1 |
) |
% |
4 |
|
% |
3 |
|
% |
Hefty Waste & Storage |
3 |
|
% |
(3 |
) |
% |
— |
|
% |
Hefty Tableware |
9 |
|
% |
(8 |
) |
% |
1 |
|
% |
Presto Products |
1 |
|
% |
(2 |
) |
% |
(1 |
) |
% |
Total RCP |
3 |
|
% |
(2 |
) |
% |
1 |
|
% |
Use of Non-GAAP Financial Measures
We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” “Net Debt,” and “Net debt to trailing twelve months Adjusted EBITDA” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, depreciation and amortization and further adjusted to exclude IPO and separation-related costs, as well as other non-recurring costs. We define Adjusted Net Income and Adjusted Earnings Per Share (“Adjusted EPS”) as Net Income and Earnings Per Share (“EPS”) calculated in accordance with GAAP, plus IPO and separation-related costs, as well as other non-recurring costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above).
We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted Earnings Per Share as supplemental measures to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.
Guidance for fiscal year and fourth quarter 2023, where adjusted, is provided on a non-GAAP basis. The Company cannot reconcile its expected Net Debt at December 31, 2023 to expected total debt, or expected ratios involving Net Debt, without reasonable effort because certain items that impact total debt and other reconciling measures are out of the Company’s control and/or cannot be reasonably predicted at this time, to which unavailable information could have a significant impact on the Company’s GAAP financial results.
Please see reconciliations of non-GAAP measures used in this release (with the exception of our December 31, 2023 Net Debt outlook, as described above) to the most directly comparable GAAP measures, beginning on the following page.
Reynolds Consumer Products Inc. Reconciliation of Net Income to Adjusted EBITDA (amounts in millions) |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
(in millions) |
|
(in millions) |
||||||||
Net income – GAAP |
$ |
78 |
|
$ |
48 |
|
$ |
161 |
|
$ |
152 |
Income tax expense |
|
25 |
|
|
15 |
|
|
54 |
|
|
49 |
Interest expense, net |
|
31 |
|
|
20 |
|
|
91 |
|
|
48 |
Depreciation and amortization |
|
31 |
|
|
30 |
|
|
92 |
|
|
87 |
IPO and separation-related costs (1) |
|
— |
|
|
3 |
|
|
— |
|
|
10 |
Adjusted EBITDA (Non-GAAP) |
$ |
165 |
|
$ |
116 |
|
$ |
398 |
|
$ |
346 |
| (1) | Reflects costs related to the IPO process, as well as costs related to our separation to operate as a stand-alone public company. These costs are included in Other expense, net in our consolidated statements of income. |
Reynolds Consumer Products Inc. Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS (amounts in millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||
(in millions, except for per share data) |
Net
|
|
Diluted
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Diluted
|
||||
As Reported - GAAP |
$ |
78 |
|
210 |
|
$ |
0.37 |
|
$ |
48 |
|
210 |
|
$ |
0.23 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
IPO and separation-related costs (1) |
|
— |
|
210 |
|
|
— |
|
|
2 |
|
210 |
|
|
0.01 |
Adjusted (Non-GAAP) |
$ |
78 |
|
210 |
|
$ |
0.37 |
|
$ |
50 |
|
210 |
|
$ |
0.24 |
| (1) |
Amounts are after tax, calculated using a tax rate of |
|
Nine Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in millions, except for per share data) |
Net
|
|
Diluted
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Diluted
|
||||
As Reported - GAAP |
$ |
161 |
|
210 |
|
$ |
0.77 |
|
$ |
152 |
|
210 |
|
$ |
0.72 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
IPO and separation-related costs (1) |
|
— |
|
210 |
|
|
— |
|
|
8 |
|
210 |
|
|
0.04 |
Adjusted (Non-GAAP) |
$ |
161 |
|
210 |
|
$ |
0.77 |
|
$ |
160 |
|
210 |
|
$ |
0.76 |
| (1) |
Amounts are after tax, calculated using a tax rate of |
Reynolds Consumer Products Inc. Reconciliation of Net Income to Trailing Twelve Months Adjusted EBITDA (amounts in millions) |
|||||
|
Twelve Months Ended
|
|
Twelve Months Ended
|
||
|
(in millions) |
|
|
||
Net income – GAAP |
$ |
268 |
|
$ |
258 |
Income tax expense |
|
84 |
|
|
80 |
Interest expense, net |
|
119 |
|
|
76 |
Depreciation and amortization |
|
122 |
|
|
117 |
IPO and separation-related costs (1) |
|
3 |
|
|
12 |
Other |
|
2 |
|
|
3 |
Adjusted EBITDA (Non-GAAP) |
$ |
598 |
|
$ |
546 |
| (1) | Reflects costs related to the IPO process, as well as costs related to our separation to operate as a stand-alone public company. These costs are included in Other expense, net in our consolidated statements of income. |
Reynolds Consumer Products Inc. Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA (amounts in millions, except for Net Debt to Trailing Twelve Months Adjusted EBITDA) |
|||
As of September 30, 2023 |
|
||
Current portion of long-term debt |
$ |
— |
|
Long-term debt |
|
1,981 |
|
Total debt |
|
1,981 |
|
Cash and cash equivalents |
|
(124 |
) |
Net debt (Non-GAAP) |
$ |
1,857 |
|
For the twelve months ended September 30, 2023 |
|
||
Adjusted EBITDA (Non-GAAP) |
$ |
598 |
|
|
|
||
Net Debt to Trailing Twelve Months Adjusted EBITDA |
3.1x |
||
As of December 31, 2022 |
|
||
Current portion of long-term debt |
$ |
25 |
|
Long-term debt |
|
2,066 |
|
Total debt |
|
2,091 |
|
Cash and cash equivalents |
|
(38 |
) |
Net debt (Non-GAAP) |
$ |
2,053 |
|
For the twelve months ended December 31, 2022 |
|
||
Adjusted EBITDA (Non-GAAP) |
$ |
546 |
|
|
|
||
Net Debt to Trailing Twelve Months Adjusted EBITDA |
3.8x |
||
Reynolds Consumer Products Inc. Reconciliation of Q3 2023 and FY2023 Net Income Guidance to Adjusted EBITDA Guidance (amounts in millions) |
|||||||||||
|
Three Months Ended December 31, 2023 |
|
Year Ended December 31, 2023 |
||||||||
|
Low |
|
High |
|
Low |
|
High |
||||
Net income (GAAP) |
$ |
127 |
|
$ |
135 |
|
$ |
288 |
|
$ |
296 |
Income tax expense |
|
43 |
|
|
45 |
|
|
97 |
|
|
99 |
Interest expense, net |
|
28 |
|
|
28 |
|
|
119 |
|
|
119 |
Depreciation and amortization |
|
29 |
|
|
29 |
|
|
121 |
|
|
121 |
Adjusted EBITDA |
$ |
227 |
|
$ |
237 |
|
$ |
625 |
|
$ |
635 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231108204784/en/
Investor Contact
Mark Swartzberg
Mark.Swartzberg@reynoldsbrands.com
(847) 482-4081
Source: Reynolds Consumer Products Inc.
FAQ
What were Reynolds Consumer Products Inc.'s Q3 2023 net revenues?
What was the net income for Q3 2023?
What is the Company's net debt to trailing twelve months Adjusted EBITDA as of September 30, 2023?
What acquisition did the Company make after the quarter ended?
What was the percentage change in adjusted EBITDA for the Hefty Waste & Storage segment?
