Sealed Air Reports Q3 2024 Results
Sealed Air (NYSE: SEE) reported Q3 2024 net sales of $1.35 billion, down 2.7% year-over-year. The company restructured into two verticals: Food and Protective. Food segment showed growth with net sales of $898 million (up 1%), while the Protective segment declined to $447 million (down 8%). Net earnings reached $89 million, or $0.61 per diluted share, up from $58 million ($0.40/share) last year. Adjusted EBITDA was $276 million, representing 20.5% of net sales. The company's net leverage ratio improved to 3.7x, and they updated their 2024 outlook with net sales guidance of $5.375-$5.425 billion.
Sealed Air (NYSE: SEE) ha riportato vendite nette per il terzo trimestre 2024 pari a 1,35 miliardi di dollari, in calo del 2,7% rispetto allo stesso periodo dell'anno precedente. L'azienda si è ristrutturata in due settori: Alimentare e Protettivo. Il segmento Alimentare ha registrato una crescita con vendite nette di 898 milioni di dollari (aumento dell'1%), mentre il segmento Protettivo è diminuito a 447 milioni di dollari (calo dell'8%). Gli utili netti hanno raggiunto i 89 milioni di dollari, equivalenti a 0,61 dollari per azione diluita, in aumento rispetto ai 58 milioni di dollari (0,40 dollari/azione) dell'anno scorso. L'EBITDA rettificato è stato di 276 milioni di dollari, rappresentando il 20,5% delle vendite nette. Il rapporto di leva finanziaria netta dell'azienda è migliorato a 3,7x, e hanno aggiornato le previsioni per il 2024 con una guida alle vendite nette di 5,375-5,425 miliardi di dollari.
Sealed Air (NYSE: SEE) reportó ventas netas del tercer trimestre de 2024 por 1.35 mil millones de dólares, lo que representa una disminución del 2.7% en comparación con el año anterior. La compañía se reestructuró en dos verticales: Alimentación y Protección. El segmento Alimentación mostró un crecimiento con ventas netas de 898 millones de dólares (un incremento del 1%), mientras que el segmento Protección disminuyó a 447 millones de dólares (una caída del 8%). Las ganancias netas alcanzaron los 89 millones de dólares, o 0.61 dólares por acción diluida, un aumento respecto a los 58 millones de dólares (0.40 dólares/acción) del año pasado. El EBITDA ajustado fue de 276 millones de dólares, representando el 20.5% de las ventas netas. La relación de apalancamiento neto de la compañía mejoró a 3.7x, y actualizaron su perspectiva para 2024 con una guía de ventas netas de 5.375-5.425 mil millones de dólares.
Sealed Air (NYSE: SEE)는 2024년 3분기 순매출 13억 5천만 달러를 보고했으며, 전년 대비 2.7% 감소했습니다. 이 회사는 식품과 보호의 두 개 수직으로 재구성되었습니다. 식품 부문은 순매출 8억 9,800만 달러(1% 증가)를 기록하며 성장세를 보인 반면, 보호 부문은 4억 4,700만 달러(8% 감소)로 줄었습니다. 순이익은 8,900만 달러, 즉 희석 주당 0.61 달러로 지난해의 5,800만 달러 (0.40 달러/주)에 비해 증가했습니다. 조정된 EBITDA는 2억 7,600만 달러로, 순매출의 20.5%를 차지했습니다. 회사의 순 부채비율은 3.7배로 개선되었고, 2024년 전망을 업데이트하여 순매출 전망을 53.75억-54.25억 달러로 설정했습니다.
Sealed Air (NYSE: SEE) a annoncé pour le troisième trimestre 2024 des ventes nettes de 1,35 milliard de dollars, en baisse de 2,7 % par rapport à l'année précédente. L'entreprise s'est restructurée en deux segments : Alimentaire et Protecteur. Le segment Alimentaire a enregistré une croissance avec des ventes nettes de 898 millions de dollars (augmentation de 1 %), tandis que le segment Protecteur a diminué pour atteindre 447 millions de dollars (baisse de 8 %). Le bénéfice net s'est élevé à 89 millions de dollars, soit 0,61 dollar par action diluée, en hausse par rapport à 58 millions de dollars (0,40 dollar/action) l'année dernière. L'EBITDA ajusté a été de 276 millions de dollars, représentant 20,5 % des ventes nettes. Le ratio d'endettement net de l'entreprise s'est amélioré à 3,7x et ils ont mis à jour leurs prévisions pour 2024 avec un objectif de ventes nettes de 5,375 à 5,425 milliards de dollars.
Sealed Air (NYSE: SEE) berichtete für das dritte Quartal 2024 einen Nettoumsatz von 1,35 Milliarden US-Dollar, was einem Rückgang von 2,7 % im Vergleich zum Vorjahr entspricht. Das Unternehmen hat sich in zwei Bereiche umstrukturiert: Lebensmittel und Schutz. Der Lebensmittelbereich zeigte ein Wachstum mit Nettoumsätzen von 898 Millionen US-Dollar (ein Anstieg um 1 %), während der Schutzbereich auf 447 Millionen US-Dollar zurückging (ein Rückgang von 8 %). Der Nettogewinn belief sich auf 89 Millionen US-Dollar, oder 0,61 US-Dollar pro verwässerter Aktie, ein Anstieg gegenüber 58 Millionen US-Dollar (0,40 US-Dollar/Aktie) im letzten Jahr. Das bereinigte EBITDA lag bei 276 Millionen US-Dollar und entsprach 20,5 % des Nettoumsatzes. Die Unternehmensverschuldung verbesserte sich auf 3,7x, und sie aktualisierten ihre Prognose für 2024 mit einer Nettoumsatzprognose von 5,375 bis 5,425 Milliarden US-Dollar.
- Net earnings increased 54% to $89 million
- Food segment volumes grew 2% with improved EBITDA margins
- Cash flow from operations improved 151.3% YTD to $483.8 million
- Free Cash Flow increased 76.8% YTD to $322.7 million
- Net leverage ratio improved from 3.9x to 3.7x
- Overall net sales declined 2.7% to $1.35 billion
- Protective segment sales decreased 8% with volumes down 6%
- Adjusted EBITDA decreased 3.1% to $276 million
- Unfavorable pricing impact of $26 million (2%) on net sales
- Protective segment EBITDA margins declined from 19.5% to 16.9%
Insights
Sealed Air's Q3 results present a mixed picture with notable divergence between segments. Food segment showed strength with
Key positives include strong cash flow generation with YTD operating cash flow of
The divergent performance between segments reflects broader market dynamics. The Food segment's growth indicates resilient consumer demand and successful market share gains, while Protective's decline mirrors the ongoing industrial slowdown and reduced e-commerce activity. The company's strategic shift to vertical integration could improve operational efficiency, but near-term challenges persist in the industrial sector.
The maintained midpoint guidance for Sales and Adjusted EBITDA, coupled with improved Free Cash Flow outlook, suggests management's conservative approach to market uncertainties while focusing on operational improvements and debt reduction. The cost optimization program appears to be offsetting some margin pressure from price deterioration.
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
$90 million - Net leverage ratio reduced to 3.7x with maintained focus on deleveraging the balance sheet
- Updating our financial outlook for 2024
"With the shift into two verticals, Food and Protective, and the onboarding of new leadership, we have positioned Sealed Air for long-term success," said Patrick Kivits, Sealed Air's CEO. "Over the coming months, we are focused on operationalizing each vertical and finalizing the long-term growth strategy for each business. In parallel, we are stepping up our cost take-out initiatives to right-size each business and improve profitability until our transformation takes hold."
"While our third quarter results were ahead of expectation, the strength of our Food business continues to be offset by continued softness in our Protective portfolio. As a result, we are maintaining the midpoint of our Sales and Adjusted EBITDA guidance," said Dustin Semach, Sealed Air's President and CFO. "We continue to improve underlying cash generation fundamentals, optimize our debt and tax rate, and as a result, we are raising our guidance for Free Cash Flow and Adjusted EPS for the year."
($ millions, except per share data) | ||||
GAAP Results | Third Quarter | |||
2024 | 2023 | Reported △% | Constant Currency △% | |
Net Sales | (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
Net Sales | |
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
Sealed Air Corporation will host a conference call and webcast on Thursday, November 7, 2024 at 10:00 a.m. (ET) to discuss our Third Quarter 2024 Results. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company's third quarter earnings will be made available through the "Presentations & Events" section of the Company's Investor Relations website at https://ir.sealedair.com/events-and-presentations prior to the call.
About Sealed Air
Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2023, Sealed Air generated
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, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
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 Securities and Exchange Commission.
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 Sullivan
brian.c.sullivan@sealedair.com
704.503.8841
Louise Lagache
louise.lagache@sealedair.com
Media
Amanda Hoggarth
amanda.hoggarth@sealedair.com
Sealed Air Corporation 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 | ||||
Sealed Air Corporation Condensed Consolidated Balance Sheets (Unaudited)
| ||||
(In USD millions) | September 30, 2024 | December 31, 2023 | ||
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 | ||
Goodwill | 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 | ||
Sealed Air Corporation Condensed Consolidated Statements of Cash Flows (Unaudited)
| ||||
Nine Months Ended September 30, | ||||
(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 September 30, | ||||
(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 |
Sealed Air Corporation Components of Change in Net Sales by Segment (Unaudited)
| ||||||||||||
Three Months Ended September 30, | ||||||||||||
(In USD millions) | Food | Protective | Total Company | |||||||||
2023 Net Sales | $ 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 Net Sales | $ 897.9 | 66.8 % | $ 447.2 | 33.2 % | $ 1,345.1 | 100.0 % | ||||||
Nine Months Ended September 30, | ||||||||||||
(In USD millions) | Food | Protective | Total Company | |||||||||
2023 Net Sales | $ 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 Net Sales | $ 2,660.1 | 66.2 % | $ 1,359.7 | 33.8 % | $ 4,019.8 | 100.0 % | ||||||
Components of Change in Net Sales by Region (Unaudited)
| ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
(In USD millions) | EMEA | APAC | Total | |||||||||||||
2023 Net Sales | $ 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 Net Sales | $ 876.0 | 65.1 % | $ 273.1 | 20.3 % | $ 196.0 | 14.6 % | $ 1,345.1 | 100.0 % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
(In USD millions) | EMEA | APAC | Total | |||||||||||||
2023 Net Sales | $ 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 Net Sales | $ 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. |
Sealed Air Corporation Segment Information Reconciliation of Net Earnings to Non-GAAP Consolidated Adjusted EBITDA (Unaudited)
| ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
(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 September 30, | Nine Months Ended September 30, | |||||||
(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 September 30, | Nine Months Ended September 30, | |||||||
(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 September 30, | Nine Months Ended September 30, | |||||||
(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 September 30, 2024 and September 30, 2023, Tax Special Items primarily reflect accruals for uncertain tax positions. |
Sealed Air Corporation 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||
(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 September 30, 2024 primarily relate to fees paid to third-party consultants in support of the CTO2Grow business transformation. Other restructuring associated costs for the three and nine months ended September 30, 2023 primarily consists of impairment of property and equipment and inventory obsolescence charges related to business closure activity. |
(ii) | Contract terminations for the three and nine months ended September 30, 2023 primarily relates to charges associated with business closure activity. |
(iii) | Charges related to acquisition and divestiture activity for the three months ended September 30, 2024 primarily consist of Liquibox related charges. Charges related to acquisition and divestiture activity for the nine months ended September 30, 2024 primarily consist of integration expenses and other Liquibox related charges, partially offset by income recognized on the final purchase price settlement related to the Liquibox acquisition. |
(iv) | Other Special Items for the three and nine months ended September 30, 2024 primarily include fees related to professional services directly associated with Special Items or events that are considered one-time or infrequent. Other Special Items for the three months ended September 30, 2023 primarily relate to a gain associated with a legal settlement. Other Special Items for the nine months ended September 30, 2023 primarily relate to a one-time, non-cash cumulative translation adjustment (CTA) loss recognized due to the wind-up of one of our legal entities, partially offset by a gain associated with a legal settlement. |
Calculation of Net Debt (Unaudited)
| ||||
(In USD millions) | September 30, 2024 | December 31, 2023 | ||
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) | September 30, 2024 | December 31, 2023 | ||
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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