SEE Reports Q2 2021 Results
SEE (NYSE: SEE) reported a strong Q2 2021, with net sales rising 15% to $1.3 billion driven by a 9% increase in volume. Adjusted EBITDA edged up 1% to $263 million, though it faced inflationary pressures and supply chain challenges. The company raised its 2021 sales and EPS outlook, expecting net sales of $5.4 to $5.5 billion. The dividend was increased by 25%, and a new $1 billion share repurchase program was announced, replacing the previous one. SEE's commitment to automation and sustainability continues to be paramount.
- Net sales increased 15% to $1.3 billion.
- Adjusted EBITDA rose 1% to $263 million.
- Raised 2021 sales outlook to $5.4-$5.5 billion.
- Increased quarterly dividend by 25% to $0.20.
- Authorized new $1 billion share repurchase program.
- Adjusted EBITDA margin decreased from 22.6% to 19.8% due to input cost pressures.
- Free Cash Flow decreased to $102 million from $129 million year-over-year.
- Net Debt increased from $3.2 billion to $3.5 billion.
SEE (NYSE: SEE) today announced financial results for the second quarter 2021.
“Demand for our automated and sustainable packaging solutions drove a net sales increase of
“We are raising our 2021 sales and EPS outlook and reaffirming Adjusted EBITDA and Free Cash Flow guidance.
“We are accelerating our journey to world-class by increasing our investment in 'touchless' automation, digital and sustainability, while returning capital to shareholders, as demonstrated by our announced
Unless otherwise stated, all results compare second quarter 2021 to second quarter 2020 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported. Year-over-year comparisons are also made on a constant dollar basis, which is a non-U.S. GAAP measure. Constant dollar refers to changes in net sales and earnings, including changes in unit volume and price performance, but excluding the impact of currency translation. Additionally, non-U.S. GAAP adjusted financial measures, such as Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), Adjusted Net Earnings, Adjusted Diluted Earnings Per Share ("Adjusted EPS") and Adjusted Tax Rate, exclude the impact of specified items ("Special Items"), such as restructuring charges, restructuring associated costs, gains and losses related to acquisition and divestiture of businesses, special tax items ("Tax Special Items") and certain infrequent or one-time items. Please refer to the supplemental information included with this press release for a reconciliation of U.S. GAAP to Non-U.S. GAAP financial measures.
Business Highlights
Second quarter net sales in Food were
Second quarter net sales in Protective were
Second Quarter 2021 U.S. GAAP Summary
Net sales of
Net earnings in second quarter 2021 were
The effective tax rate in second quarter 2021 was
Second Quarter 2021 Non-U.S. GAAP Summary
Net sales increased
Adjusted EBITDA was
The Adjusted Tax Rate was
Adjusted earnings per diluted share were
Cash Flow and Net Debt
Cash flow provided by operating activities in the first six months of 2021 was a source of
Capital expenditures in the first six months of 2021 were
Total debt was
Share Repurchases and Dividends
During the first six months of 2021, the Company repurchased
During the second quarter, SEE increased its quarterly cash dividend by
Updated 2021 Full Year Outlook
For the full year 2021, SEE now expects net sales in the range of
The Company continues to expect full year Adjusted EBITDA to be in the range of
SEE now forecasts full year Adjusted EPS to be in the range of
The Company continues to expect Free Cash Flow in 2021 to be in the range of
Conference Call Information
Sealed Air Corporation will host a conference call and webcast on Tuesday, August 3, 2021 at 10:00 a.m. (ET) to discuss our Second Quarter 2021 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.
About Sealed Air
SEE (NYSE: SEE) is in business to protect, to solve critical packaging challenges, and to make our world better than we found it. Our packaging technology, solutions and systems create a safer, more resilient and less wasteful global food supply chain, enable eCommerce, and protect goods transported worldwide.
Our globally recognized brands include CRYOVAC® brand food packaging, SEALED AIR® brand protective packaging, AUTOBAG® brand automated systems, BUBBLE WRAP® brand packaging, and SEETM Automation solutions.
SEE's Operating Model, along with industry-leading experts in materials, engineering, technology, and science, are driving our innovative solution systems to be more sustainable, automated, and digitally connected.
SEE is leading the packaging industry to create a more environmentally, socially, and economically sustainable future and has pledged to design or advance
SEE 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-U.S. GAAP Information
In this press release and supplement, we have included several non-U.S. 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 and Adjusted Tax Rate, as our management believes these measures are useful to investors. We present results and guidance, adjusted to exclude the effects of Special Items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods or prior guidance. In addition, non-U.S. GAAP measures are used by management to review and analyze our operating performance and, along with other data, as internal measures for setting annual budgets and forecasts, assessing financial performance, providing guidance and comparing our financial performance with our peers and may also be used for purposes of determining incentive compensation. The non-U.S. GAAP information has limitations as an analytical tool and should not be considered in isolation from or as a substitute for U.S. GAAP information. It does not purport to represent any similarly titled U.S. GAAP information and is not an indicator of our performance under U.S. GAAP. Non-U.S. GAAP financial measures that we present may not be comparable with similarly titled measures used by others. Investors are cautioned against placing undue reliance on these non-U.S. GAAP measures. For a reconciliation of these U.S. GAAP measures to non-U.S. GAAP measures and other important information on our use of non-U.S. GAAP financial measures, see the attached supplementary information entitled “Condensed Consolidated Statements of Cash Flows” (under the section entitled “Non-U.S. GAAP Free Cash Flow”), “Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-U.S. GAAP Adjusted Net Earnings and Non-U.S. GAAP Adjusted Net Earnings Per Common Share,” “Reconciliation of Net Earnings to Non-U.S. GAAP Total Company Adjusted EBITDA,” “Components of Change in Net Sales by Segment” and “Components of Change in Net Sales by Region.” Information reconciling forward-looking U.S. GAAP measures to non-U.S. GAAP measures is not available without unreasonable effort.
We have not provided guidance for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain Special Items, including restructuring charges, gains and losses related to acquisition and divestiture of businesses, the ultimate outcome of certain legal or tax proceedings, and other unusual gains and losses. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition, results of operations or cash flows. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.
The following are important factors that we believe could cause actual results to differ materially from those in our forward-looking statements: global economic and political conditions, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, including the Coronavirus Disease 2019 (COVID-19), changes in energy costs, environmental matters, the success of our restructuring activities, the success of our merger, acquisition and equity investment strategies, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, the tax benefit associated with the Settlement agreement (as defined in our 2020 Annual Report on Form 10-K), regulatory actions and legal matters and the other information referenced in the “Risk Factors” section appearing in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by us is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments or otherwise.
The supplementary information included for 2021 in this press release on the current and subsequent pages 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.
Sealed Air Corporation Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In USD millions, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net sales |
|
$ |
1,328.5 |
|
|
$ |
1,151.2 |
|
|
$ |
2,595.6 |
|
|
$ |
2,325.1 |
|
Cost of sales |
|
927.8 |
|
|
761.3 |
|
|
1,793.8 |
|
|
1,544.7 |
|
||||
Gross profit |
|
400.7 |
|
|
389.9 |
|
|
801.8 |
|
|
780.4 |
|
||||
Selling, general and administrative expenses |
|
192.0 |
|
|
184.5 |
|
|
380.9 |
|
|
378.6 |
|
||||
Amortization expense of intangible assets |
|
9.7 |
|
|
9.3 |
|
|
19.4 |
|
|
18.3 |
|
||||
Restructuring charges |
|
2.1 |
|
|
10.1 |
|
|
2.1 |
|
|
10.7 |
|
||||
Operating profit |
|
196.9 |
|
|
186.0 |
|
|
399.4 |
|
|
372.8 |
|
||||
Interest expense, net |
|
(42.1 |
) |
|
(43.3 |
) |
|
(85.2 |
) |
|
(87.7 |
) |
||||
Other (expense) income, net |
|
(0.4 |
) |
|
2.2 |
|
|
0.6 |
|
|
7.0 |
|
||||
Earnings before income tax provision |
|
154.4 |
|
|
144.9 |
|
|
314.8 |
|
|
292.1 |
|
||||
Income tax provision |
|
45.8 |
|
|
44.6 |
|
|
100.4 |
|
|
77.3 |
|
||||
Net earnings from continuing operations |
|
108.6 |
|
|
100.3 |
|
|
214.4 |
|
|
214.8 |
|
||||
(Loss) Gain on sale of discontinued operations, net of tax |
|
(0.5 |
) |
|
(0.2 |
) |
|
3.8 |
|
|
11.9 |
|
||||
Net earnings |
|
$ |
108.1 |
|
|
$ |
100.1 |
|
|
$ |
218.2 |
|
|
$ |
226.7 |
|
Basic: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.71 |
|
|
$ |
0.64 |
|
|
$ |
1.40 |
|
|
$ |
1.38 |
|
Discontinued operations |
|
— |
|
|
— |
|
|
0.03 |
|
|
0.08 |
|
||||
Net earnings per common share - basic |
|
$ |
0.71 |
|
|
$ |
0.64 |
|
|
$ |
1.43 |
|
|
$ |
1.46 |
|
Weighted average common shares outstanding - basic |
|
151.4 |
|
|
155.6 |
|
|
152.8 |
|
|
155.1 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.71 |
|
|
$ |
0.64 |
|
|
$ |
1.39 |
|
|
$ |
1.38 |
|
Discontinued operations |
|
— |
|
|
— |
|
|
0.03 |
|
|
0.08 |
|
||||
Net earnings per common share - diluted |
|
$ |
0.71 |
|
|
$ |
0.64 |
|
|
$ |
1.42 |
|
|
$ |
1.46 |
|
Weighted average common shares outstanding - diluted |
|
152.7 |
|
|
155.9 |
|
|
154.0 |
|
|
155.4 |
|
||||
Sealed Air Corporation Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
(In USD millions) |
|
June 30, 2021 |
|
December 31, 2020 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
273.1 |
|
|
$ |
548.7 |
|
Trade receivables, net |
|
627.6 |
|
|
541.0 |
|
||
Income tax receivables |
|
30.6 |
|
|
71.2 |
|
||
Other receivables |
|
86.3 |
|
|
69.5 |
|
||
Inventories, net |
|
730.7 |
|
|
596.7 |
|
||
Current assets held for sale |
|
— |
|
|
0.3 |
|
||
Prepaid expenses and other current assets |
|
58.4 |
|
|
54.1 |
|
||
Total current assets |
|
1,806.7 |
|
|
1,881.5 |
|
||
Property and equipment, net |
|
1,202.8 |
|
|
1,189.7 |
|
||
Goodwill |
|
2,220.9 |
|
|
2,222.6 |
|
||
Identifiable intangible assets, net |
|
162.1 |
|
|
171.0 |
|
||
Deferred taxes |
|
179.3 |
|
|
187.1 |
|
||
Operating lease right-of-use-assets |
|
70.7 |
|
|
76.1 |
|
||
Other non-current assets |
|
364.1 |
|
|
355.8 |
|
||
Total assets |
|
$ |
6,006.6 |
|
|
$ |
6,083.8 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term borrowings |
|
$ |
0.4 |
|
|
$ |
7.2 |
|
Current portion of long-term debt |
|
22.9 |
|
|
22.3 |
|
||
Current portion of operating lease liabilities |
|
23.7 |
|
|
24.3 |
|
||
Accounts payable |
|
880.7 |
|
|
754.2 |
|
||
Accrued restructuring costs |
|
7.8 |
|
|
12.2 |
|
||
Income tax payable |
|
23.1 |
|
|
19.9 |
|
||
Other current liabilities |
|
447.3 |
|
|
527.3 |
|
||
Total current liabilities |
|
1,405.9 |
|
|
1,367.4 |
|
||
Long-term debt, less current portion |
|
3,711.8 |
|
|
3,731.4 |
|
||
Long-term operating lease liabilities, less current portion |
|
48.8 |
|
|
53.2 |
|
||
Deferred taxes |
|
38.6 |
|
|
31.0 |
|
||
Other non-current liabilities |
|
707.7 |
|
|
728.3 |
|
||
Total liabilities |
|
5,912.8 |
|
|
5,911.3 |
|
||
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
— |
|
|
— |
|
||
Common stock |
|
23.2 |
|
|
23.2 |
|
||
Additional paid-in capital |
|
2,103.7 |
|
|
2,093.0 |
|
||
Retained earnings |
|
2,562.8 |
|
|
2,400.7 |
|
||
Common stock in treasury |
|
(3,651.1 |
) |
|
(3,380.9 |
) |
||
Accumulated other comprehensive loss, net of taxes |
|
(944.8 |
) |
|
(963.5 |
) |
||
Total stockholders’ equity |
|
93.8 |
|
|
172.5 |
|
||
Total liabilities and stockholders’ equity |
|
$ |
6,006.6 |
|
|
$ |
6,083.8 |
|
Calculation of Net Debt (Unaudited) |
||||||||
(In USD millions) |
|
June 30, 2021 |
|
December 31, 2020 |
||||
Short-term borrowings |
|
$ |
0.4 |
|
|
$ |
7.2 |
|
Current portion of long-term debt |
|
22.9 |
|
|
22.3 |
|
||
Long-term debt, less current portion |
|
3,711.8 |
|
|
3,731.4 |
|
||
Total debt |
|
3,735.1 |
|
|
3,760.9 |
|
||
Less: cash and cash equivalents |
|
(273.1 |
) |
|
(548.7 |
) |
||
Non-U.S. GAAP Net Debt |
|
$ |
3,462.0 |
|
|
$ |
3,212.2 |
|
Sealed Air Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Six Months Ended June 30, |
||||||
(In USD millions) |
|
2021 |
|
2020 |
||||
Net earnings |
|
$ |
218.2 |
|
|
$ |
226.7 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities(1) |
|
139.5 |
|
|
122.5 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||
Trade receivables, net |
|
(92.9 |
) |
|
(26.0 |
) |
||
Inventories, net |
|
(144.8 |
) |
|
(88.1 |
) |
||
Accounts payable |
|
130.5 |
|
|
2.1 |
|
||
Customer advance payments |
|
4.9 |
|
|
12.0 |
|
||
Income tax receivable/payable |
|
44.3 |
|
|
48.7 |
|
||
Other assets and liabilities |
|
(100.2 |
) |
|
(84.9 |
) |
||
Net cash provided by operating activities |
|
$ |
199.5 |
|
|
$ |
213.0 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
(97.1 |
) |
|
(83.6 |
) |
||
Receipts associated with sale of business and property and equipment |
|
1.1 |
|
|
5.2 |
|
||
Business acquired, net of cash acquired |
|
(0.1 |
) |
|
4.2 |
|
||
Payments associated with debt and equity investments |
|
(15.0 |
) |
|
— |
|
||
Investment in marketable securities |
|
— |
|
|
12.9 |
|
||
Settlement of foreign currency forward contracts |
|
8.0 |
|
|
(5.9 |
) |
||
Proceeds of Corporate Owned Life Insurance |
|
7.7 |
|
|
— |
|
||
Net cash used in investing activities |
|
$ |
(95.4 |
) |
|
$ |
(67.2 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Net payments of short-term borrowings |
|
(6.8 |
) |
|
(20.4 |
) |
||
Proceeds from long-term debt |
|
1.3 |
|
|
— |
|
||
Payments of long-term debt |
|
(5.7 |
) |
|
— |
|
||
Dividends paid on common stock |
|
(56.1 |
) |
|
(50.7 |
) |
||
Impact of tax withholding on share-based compensation |
|
(14.0 |
) |
|
(11.2 |
) |
||
Repurchases of common stock |
|
(299.5 |
) |
|
— |
|
||
Principal payments related to financing leases |
|
(5.1 |
) |
|
(5.9 |
) |
||
Net cash used in financing activities |
|
$ |
(385.9 |
) |
|
$ |
(88.2 |
) |
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
$ |
6.2 |
|
|
$ |
(30.3 |
) |
Cash and cash equivalents |
|
548.7 |
|
|
262.4 |
|
||
Restricted cash and cash equivalents |
|
— |
|
|
— |
|
||
Balance, beginning of period |
|
$ |
548.7 |
|
|
$ |
262.4 |
|
Net change during the period |
|
$ |
(275.6 |
) |
|
$ |
27.3 |
|
Cash and cash equivalents |
|
273.1 |
|
|
289.7 |
|
||
Restricted cash and cash equivalents |
|
— |
|
|
— |
|
||
Balance, end of period |
|
$ |
273.1 |
|
|
$ |
289.7 |
|
|
|
|
|
|
||||
Non-U.S. GAAP Free Cash Flow: |
|
|
|
|
||||
Cash flow from operating activities |
|
$ |
199.5 |
|
|
$ |
213.0 |
|
Capital expenditures for property and equipment |
|
(97.1 |
) |
|
(83.6 |
) |
||
Non-U.S. GAAP Free Cash Flow |
|
$ |
102.4 |
|
|
$ |
129.4 |
|
|
|
|
|
|
||||
|
|
Six Months Ended June 30, |
||||||
(In USD millions) |
|
2021 |
|
2020 |
||||
Supplemental Cash Flow Information: |
|
|
|
|
||||
Interest payments, net of amounts capitalized |
|
$ |
89.4 |
|
|
$ |
97.5 |
|
Income tax payments, net of cash refunds |
|
$ |
35.3 |
|
|
$ |
31.4 |
|
Restructuring payments including associated costs |
|
$ |
10.6 |
|
|
$ |
43.9 |
|
Non-cash items: |
|
|
|
|
||||
Transfers of shares of common stock from treasury for profit-sharing contributions |
|
$ |
28.0 |
|
|
$ |
24.4 |
|
______________________
| (1) |
2021 adjustments primarily consist of depreciation and amortization of |
Sealed Air Corporation Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-U.S. GAAP Adjusted Net Earnings and Non-U.S. GAAP Adjusted Net Earnings Per Common Share (Unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||||
(In USD millions, except per share data) |
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
||||||||
U.S. GAAP net earnings and diluted EPS from continuing operations |
|
$ |
108.6 |
|
$ |
0.71 |
|
$ |
100.3 |
|
$ |
0.64 |
|
$ |
214.4 |
|
$ |
1.39 |
|
$ |
214.8 |
|
$ |
1.38 |
Special Items(1) |
|
12.6 |
|
0.08 |
|
18.0 |
|
0.12 |
|
28.6 |
|
0.19 |
|
16.9 |
|
0.11 |
||||||||
Non-U.S. GAAP adjusted net earnings and adjusted diluted EPS |
|
$ |
121.2 |
|
$ |
0.79 |
|
$ |
118.3 |
|
$ |
0.76 |
|
$ |
243.0 |
|
$ |
1.58 |
|
$ |
231.7 |
|
$ |
1.49 |
Weighted average number of common shares outstanding - Diluted |
|
|
|
152.7 |
|
|
|
155.9 |
|
|
|
154.0 |
|
|
|
155.4 |
||||||||
______________________
| (1) | Special Items include the following: |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In USD millions, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Special Items: |
|
|
|
|
|
|
|
|
||||||||
Restructuring charges |
|
$ |
2.1 |
|
|
$ |
10.1 |
|
|
$ |
2.1 |
|
|
$ |
10.7 |
|
Other restructuring associated costs(i) |
|
4.8 |
|
|
3.8 |
|
|
10.1 |
|
|
7.8 |
|
||||
Foreign currency exchange loss due to highly inflationary economies |
|
0.6 |
|
|
1.2 |
|
|
2.0 |
|
|
2.1 |
|
||||
Charges related to acquisition and divestiture activity |
|
0.8 |
|
|
1.2 |
|
|
1.1 |
|
|
4.1 |
|
||||
Other Special Items |
|
0.1 |
|
|
2.0 |
|
|
0.9 |
|
|
3.7 |
|
||||
Pre-tax impact of Special Items |
|
8.4 |
|
|
18.3 |
|
|
16.2 |
|
|
28.4 |
|
||||
Tax impact of Special Items and Tax Special Items |
|
4.2 |
|
|
(0.3 |
) |
|
12.4 |
|
|
(11.5 |
) |
||||
Net impact of Special Items |
|
$ |
12.6 |
|
|
$ |
18.0 |
|
|
$ |
28.6 |
|
|
$ |
16.9 |
|
Weighted average number of common shares outstanding - Diluted |
|
152.7 |
|
|
155.9 |
|
|
154.0 |
|
|
155.4 |
|
||||
Loss per share impact from Special Items |
|
$ |
(0.08 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.11 |
) |
______________________
| (i) | Restructuring associated costs for the three months ended June 30, 2021 primarily relate to fees paid to third-party consultants in support of the Reinvent SEE business transformation. Restructuring associated costs for the six months ended June 30, 2021 also includes a one-time, non-cash cumulative translation adjustment loss (CTA) recognized due to the wind-up of one of our legal entities. Restructuring associated costs for the three and six months ended June 30, 2020, primarily relate to fees paid to third-party consultants in support of the Reinvent SEE business transformation. |
The calculation of the non-U.S. GAAP Adjusted income tax rate is as follows:
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||
(In USD millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||
U.S. GAAP Earnings before income tax provision from continuing operations |
|
$ |
154.4 |
|
|
|
$ |
144.9 |
|
|
|
$ |
314.8 |
|
|
|
$ |
292.1 |
|
Pre-tax impact of special items |
|
8.4 |
|
|
|
18.3 |
|
|
|
16.2 |
|
|
|
28.4 |
|
||||
Non-U.S. GAAP Adjusted Earnings before income tax provision |
|
$ |
162.8 |
|
|
|
$ |
163.2 |
|
|
|
$ |
331.0 |
|
|
|
$ |
320.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. GAAP Income tax provision from continuing operations |
|
$ |
45.8 |
|
|
|
$ |
44.6 |
|
|
|
$ |
100.4 |
|
|
|
$ |
77.3 |
|
Tax Special Items(1) |
|
(6.4 |
) |
|
|
(3.2 |
) |
|
|
(15.5 |
) |
|
|
5.4 |
|
||||
Tax impact of Special Items |
|
2.2 |
|
|
|
3.5 |
|
|
|
3.1 |
|
|
|
6.1 |
|
||||
Non-U.S. GAAP Adjusted Income tax provision |
|
$ |
41.6 |
|
|
|
$ |
44.9 |
|
|
|
$ |
88.0 |
|
|
|
$ |
88.8 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. GAAP Effective income tax rate |
|
29.7 |
|
% |
|
30.8 |
|
% |
|
31.9 |
|
% |
|
26.5 |
% |
||||
Non-U.S. GAAP Adjusted income tax rate |
|
25.6 |
|
% |
|
27.5 |
|
% |
|
26.6 |
|
% |
|
27.7 |
% |
||||
______________________
| (1) | For the three and six months ended June 30, 2021, Tax Special Items reflect legislative and administrative changes to enacted statues. For the six months ended June 30, 2020, Tax Special Items reflect net benefits from audit settlements. |
Sealed Air Corporation Components of Change in Net Sales by Segment (Unaudited) |
||||||||||||||||||
|
|
Three Months Ended June 30, |
||||||||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
Total Company |
||||||||||||
2020 Net Sales |
|
$ |
673.2 |
|
58.5 |
% |
|
$ |
478.0 |
|
41.5 |
% |
|
$ |
1,151.2 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Price |
|
8.8 |
|
1.3 |
% |
|
21.6 |
|
4.5 |
% |
|
30.4 |
|
2.6 |
% |
|||
Volume(1) |
|
28.4 |
|
4.2 |
% |
|
72.6 |
|
15.2 |
% |
|
101.0 |
|
8.8 |
% |
|||
Total constant dollar change (non-U.S. GAAP)(2) |
|
37.2 |
|
5.5 |
% |
|
94.2 |
|
19.7 |
% |
|
131.4 |
|
11.4 |
% |
|||
Foreign currency translation |
|
26.3 |
|
3.9 |
% |
|
19.6 |
|
4.1 |
% |
|
45.9 |
|
4.0 |
% |
|||
Total change (U.S. GAAP) |
|
63.5 |
|
9.4 |
% |
|
113.8 |
|
23.8 |
% |
|
177.3 |
|
15.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2021 Net Sales |
|
$ |
736.7 |
|
55.5 |
% |
|
$ |
591.8 |
|
44.5 |
% |
|
$ |
1,328.5 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended June 30, |
||||||||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
Total Company |
||||||||||||
2020 Net Sales |
|
$ |
1,363.5 |
|
58.6 |
% |
|
$ |
961.6 |
|
41.4 |
% |
|
$ |
2,325.1 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Price |
|
12.8 |
|
0.9 |
% |
|
25.2 |
|
2.6 |
% |
|
38.0 |
|
1.6 |
% |
|||
Volume(1) |
|
25.7 |
|
1.9 |
% |
|
135.5 |
|
14.1 |
% |
|
161.2 |
|
7.0 |
% |
|||
Total constant dollar change (non-U.S. GAAP)(2) |
|
38.5 |
|
2.8 |
% |
|
160.7 |
|
16.7 |
% |
|
199.2 |
|
8.6 |
% |
|||
Foreign currency translation |
|
36.9 |
|
2.7 |
% |
|
34.4 |
|
3.6 |
% |
|
71.3 |
|
3.0 |
% |
|||
Total change (U.S. GAAP) |
|
75.4 |
|
5.5 |
% |
|
195.1 |
|
20.3 |
% |
|
270.5 |
|
11.6 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2021 Net Sales |
|
$ |
1,438.9 |
|
55.4 |
% |
|
$ |
1,156.7 |
|
44.6 |
% |
|
$ |
2,595.6 |
|
100.0 |
% |
Components of Change in Net Sales by Region(3) (Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, |
||||||||||||||||||||||||||
(In USD millions) |
|
Americas |
|
EMEA |
|
APAC |
|
Total |
||||||||||||||||||||
2020 Net Sales |
|
$ |
741.2 |
|
|
64.4 |
|
% |
|
$ |
239.3 |
|
20.8 |
% |
|
$ |
170.7 |
|
|
14.8 |
|
% |
|
$ |
1,151.2 |
|
100.0 |
% |
Price |
|
24.7 |
|
|
3.3 |
|
% |
|
3.4 |
|
1.4 |
% |
|
2.3 |
|
|
1.3 |
|
% |
|
30.4 |
|
2.6 |
% |
||||
Volume(1) |
|
68.9 |
|
|
9.3 |
|
% |
|
34.7 |
|
14.5 |
% |
|
(2.6 |
) |
|
(1.5 |
) |
% |
|
101.0 |
|
8.8 |
% |
||||
Total constant dollar change (non-U.S. GAAP)(2) |
|
93.6 |
|
|
12.6 |
|
% |
|
38.1 |
|
15.9 |
% |
|
(0.3 |
) |
|
(0.2 |
) |
% |
|
131.4 |
|
11.4 |
% |
||||
Foreign currency translation |
|
5.2 |
|
|
0.7 |
|
% |
|
25.0 |
|
10.5 |
% |
|
15.7 |
|
|
9.2 |
|
% |
|
45.9 |
|
4.0 |
% |
||||
Total change (U.S. GAAP) |
|
98.8 |
|
|
13.3 |
|
% |
|
63.1 |
|
26.4 |
% |
|
15.4 |
|
|
9.0 |
|
% |
|
177.3 |
|
15.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2021 Net Sales |
|
$ |
840.0 |
|
|
63.2 |
|
% |
|
$ |
302.4 |
|
22.8 |
% |
|
$ |
186.1 |
|
|
14.0 |
|
% |
|
$ |
1,328.5 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended June 30, |
||||||||||||||||||||||||||
(In USD millions) |
|
Americas |
|
EMEA |
|
APAC |
|
Total |
||||||||||||||||||||
2020 Net Sales |
|
$ |
1,507.5 |
|
|
64.8 |
|
% |
|
$ |
485.4 |
|
20.9 |
% |
|
$ |
332.2 |
|
|
14.3 |
|
% |
|
$ |
2,325.1 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Price |
|
33.8 |
|
|
2.2 |
|
% |
|
3.7 |
|
0.8 |
% |
|
0.5 |
|
|
0.2 |
|
% |
|
38.0 |
|
1.6 |
% |
||||
Volume(1) |
|
91.4 |
|
|
6.1 |
|
% |
|
50.7 |
|
10.4 |
% |
|
19.1 |
|
|
5.7 |
|
% |
|
161.2 |
|
7.0 |
% |
||||
Total constant dollar change (non-U.S. GAAP)(2) |
|
125.2 |
|
|
8.3 |
|
% |
|
54.4 |
|
11.2 |
% |
|
19.6 |
|
|
5.9 |
|
% |
|
199.2 |
|
8.6 |
% |
||||
Foreign currency translation |
|
(4.8 |
) |
|
(0.3 |
) |
% |
|
43.9 |
|
9.1 |
% |
|
32.2 |
|
|
9.7 |
|
% |
|
71.3 |
|
3.0 |
% |
||||
Total change (U.S. GAAP) |
|
120.4 |
|
|
8.0 |
|
% |
|
98.3 |
|
20.3 |
% |
|
51.8 |
|
|
15.6 |
|
% |
|
270.5 |
|
11.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2021 Net Sales |
|
$ |
1,627.9 |
|
|
62.7 |
|
% |
|
$ |
583.7 |
|
22.5 |
% |
|
$ |
384.0 |
|
|
14.8 |
|
% |
|
$ |
2,595.6 |
|
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 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 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. |
|
| (3) | As of January 1, 2021, we consolidated the reporting of the North America and South America geographic regions, which are now collectively presented as Americas. No changes were made to EMEA or APAC. This change has no impact on our prior period consolidated results and is only the aggregation of the previously bifurcated continents. |
Sealed Air Corporation Segment Information Reconciliation of Net Earnings to Non-U.S. GAAP Total Company Adjusted EBITDA (Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||
(In USD millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||
Adjusted EBITDA from continuing operations: |
|
|
|
|
|
|
|
|
|||||||||||
Food |
|
$ |
158.1 |
|
|
|
$ |
169.1 |
|
|
|
$ |
315.0 |
|
|
|
$ |
325.4 |
|
Adjusted EBITDA Margin |
|
21.5 |
|
% |
|
25.1 |
|
% |
|
21.9 |
|
% |
|
23.9 |
% |
||||
Protective |
|
107.3 |
|
|
|
91.5 |
|
|
|
217.2 |
|
|
|
184.3 |
|
||||
Adjusted EBITDA Margin |
|
18.1 |
|
% |
|
19.1 |
|
% |
|
18.8 |
|
% |
|
19.2 |
% |
||||
Corporate |
|
(2.3 |
) |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
|
|
3.4 |
|
||||
Non-U.S. GAAP Total Company Adjusted EBITDA |
|
$ |
263.1 |
|
|
|
$ |
259.9 |
|
|
|
$ |
531.3 |
|
|
|
$ |
513.1 |
|
Adjusted EBITDA Margin |
|
19.8 |
|
% |
|
22.6 |
|
% |
|
20.5 |
|
% |
|
22.1 |
% |
||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
(In USD millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
U.S. GAAP Net earnings from continuing operations |
|
$ |
108.6 |
|
$ |
100.3 |
|
$ |
214.4 |
|
$ |
214.8 |
Interest expense, net |
|
42.1 |
|
43.3 |
|
85.2 |
|
87.7 |
||||
Income tax provision |
|
45.8 |
|
44.6 |
|
100.4 |
|
77.3 |
||||
Depreciation and amortization(1) |
|
58.2 |
|
53.4 |
|
115.1 |
|
104.9 |
||||
Special Items: |
|
|
|
|
|
|
|
|
||||
Restructuring charges |
|
2.1 |
|
10.1 |
|
2.1 |
|
10.7 |
||||
Other restructuring associated costs |
|
4.8 |
|
3.8 |
|
10.1 |
|
7.8 |
||||
Foreign currency exchange loss due to highly inflationary economies |
|
0.6 |
|
1.2 |
|
2.0 |
|
2.1 |
||||
Charges related to acquisition and divestiture activity |
|
0.8 |
|
1.2 |
|
1.1 |
|
4.1 |
||||
Other Special Items |
|
0.1 |
|
2.0 |
|
0.9 |
|
3.7 |
||||
Pre-tax impact of Special items |
|
8.4 |
|
18.3 |
|
16.2 |
|
28.4 |
||||
Non-U.S. GAAP Total Company Adjusted EBITDA |
|
$ |
263.1 |
|
$ |
259.9 |
|
$ |
531.3 |
|
$ |
513.1 |
______________________
| (1) | Depreciation and amortization by segment are as follows: |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
(In USD millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Food |
|
$ |
32.7 |
|
$ |
30.2 |
|
$ |
64.4 |
|
$ |
59.2 |
Protective |
|
25.5 |
|
23.2 |
|
50.7 |
|
45.7 |
||||
Total Company depreciation and amortization(i) |
|
$ |
58.2 |
|
$ |
53.4 |
|
$ |
115.1 |
|
$ |
104.9 |
| (i) |
Includes share-based incentive compensation of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005354/en/
FAQ
What are SEE's Q2 2021 financial results?
How did SEE perform in terms of earnings per share in Q2 2021?
What is SEE's updated sales outlook for 2021?
What dividend increase did SEE announce?
What is SEE's plan for share repurchases?
