SEE Reports Q2 2023 Results
- The company is taking steps to drive volume growth and annual savings by 2025 through the Cost take-out to Grow program.
- Net sales decreased by 3% to $1.38 billion, with net earnings down 18% to $94 million.
- Adjusted EBITDA decreased by 4% as reported, and down 5% constant currency.
- The company is revising its full year 2023 guidance due to continued demand weakness.
- The Liquibox acquisition had a favorable impact on net sales, with an increase of 9% in the Food segment and a decrease of 18% in the Protective segment.
- The company's net earnings, net sales, and Adjusted EBITDA all experienced decreases compared to the previous year.
- The company's full year 2023 outlook has been revised downwards, indicating a challenging business environment.
Cost take-out to Grow as part of Reinvent SEE 2.0 to drive volume growth and
Net sales of
Net earnings of
Adjusted EBITDA of
Earnings per share (Diluted) of
Adjusted EPS (Diluted) of
Cash flow from operations (year to date) use of
Cash flow from operations includes the impact of the
SEE (NYSE: SEE) announced financial results for Q2 2023.
“Our second quarter earnings results were in line with our expectations driven by continued weakness in our end-markets. We expect demand weakness to continue with second half volumes similar to first half of 2023. We are revising our full year 2023 guidance accordingly.
In the current post-COVID lower-growth environment, we are launching Cost take-out to Grow as part of Reinvent SEE 2.0 to restore volume and earnings growth in 2024 and reduce our cost structure by
Reinvent SEE 2.0 will accelerate our strategy, driven by Automation, Digital and Sustainable packaging solutions to create value for our customers and shareholders.
I'd like to recognize our people, their hard work and dedication to relentlessly drive our company toward world-class results,” said Ted Doheny, SEE’s President and CEO.
Unless otherwise stated, all results compare second quarter 2023 to second quarter 2022 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 an organic basis and constant dollar basis, which are non-
Business Segment Highlights
Second quarter net sales in Food were
Second quarter net sales in Protective were
Reinvent SEE 2.0
Reinvent SEE 2.0 provides continuity to our transformation into a world-class automated and digital packaging solutions company. Reinvent SEE 2.0 focus priorities include:
- Accelerating Growth Platforms with a Customer First Solutions Approach: Expand and grow our portfolio of automated solutions, advance our prismiq™ digital printing & services, develop new innovative sustainable solutions and expand our digital e-commerce platform.
- Expanding the Fluids & Liquids Business, synergizing the competitive strengths of Cryovac and Liquibox: Combining highly complementary solutions within SEE’s fast growing fluids & liquids business while generating strong synergies and accelerating innovation.
- Drive SEE Operational Excellence, Automating & Digitizing the Global Network with SEE Touchless Automation: Heightened focus on world-class operations, operating leverage, productivity, zero-harm and flawless quality in everything we do, to make every customer a reference.
- SEE Operating Model and Engine: Deliver high-quality growth faster than the markets we serve as we simplify and digitize our organizational structure to withstand global slowdowns and offset inflation.
Reflecting the post-COVID operating environment, we are evolving Reinvent SEE 2.0 to include the following:
- Turnaround of Automated Protective Solutions Business: Expanding our SEE Automation and fiber-based solutions, reducing customer friction and widening our customer reach through our MySEE digital platform. Continue to evaluate the portfolio and operations to optimize and unlock value.
- Executing a cost take-out to grow restructuring program (the "CTO2Grow Program"): Transforming SEE’s go-to-market team into an efficient and effective solutions-focused organization, optimizing our portfolio with a focus on automation, digital and sustainable solutions, streamlining our supply chain footprint and driving SG&A productivity.
On August 7, 2023, SEE's Board of Directors approved the 3-year CTO2Grow Program to drive annualized savings in the range of
Second Quarter 2023 U.S. GAAP Summary
Net sales of
Net earnings were
Income tax expense was
Second Quarter 2023 Non-
Net sales decreased
Adjusted EBITDA was
The Adjusted Tax Rate was
Adjusted earnings per diluted share decreased to
Cash Flow and Net Debt
Cash flow from operating activities during the first six months of 2023 was a use of
Capital expenditures in the first six months of 2023 were
Dividend payments for the six months of 2023 and 2022 were
Total debt was
Updated 2023 Full Year Outlook
For the full year 2023, SEE now expects net sales in the range of
The Company now expects full year Adjusted EBITDA to be in the range of
The Company forecasts full year Adjusted EPS to be in the range of
In April, the Company made a
Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-
Conference Call Information
SEE will host a conference call and webcast on Tuesday, August 8, 2023 at 10:00 a.m. (ET) to discuss our Second Quarter 2023 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 SEE
SEE (NYSE: SEE), is in business to protect, to solve critical packaging challenges, and to make our world better than we find it. Our automated packaging solutions promote a safer, more resilient, and less wasteful global food, fluids and liquids supply chain, enable e-commerce, and protect goods in transit from damage.
The company, under its former trade name, Sealed Air, announced its new SEE corporate brand and logo in May 2023.
Our globally recognized solution brands include CRYOVAC® food packaging, LIQUIBOX® fluids and liquids systems, SEALED AIR® protective packaging, AUTOBAG® automated packaging systems, BUBBLE WRAP® packaging, SEE Automation™ and prismiq™ digital packaging and printing.
Our partnership with customers creates value through sustainable, automated, and digital packaging solutions, leveraging our industry-leading expertise in materials, automation systems, engineering and technology.
Our SEE Net Positive Circular Ecosystem is leading the packaging industry in creating a more environmentally, socially, and economically sustainable future. We have pledged to design or advance
Our Global Impact Report highlights how we are shaping the future of the packaging industry. We are committed to a diverse workforce and a caring, inclusive culture through our 2025 Diversity, Equity and Inclusion pledge.
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-
In this press release and supplement, we have included several non-
We have not provided guidance for the most directly comparable
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 and 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, expectations regarding future impacts resulting from the Liquibox acquisition, 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, including recessionary and inflationary pressures, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, failure to realize synergies and other financial benefits from the acquisition of Liquibox within the expected time frames, greater than expected costs or difficulties related to the integration of Liquibox, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, including the Coronavirus Disease 2019, negative impacts related to the ongoing conflicts between
The supplementary information included for 2023 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) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
|
$ |
1,380.8 |
|
|
$ |
1,418.0 |
|
|
$ |
2,729.6 |
|
|
$ |
2,835.6 |
|
Cost of sales |
|
|
962.8 |
|
|
|
979.7 |
|
|
|
1,906.5 |
|
|
|
1,920.3 |
|
Gross profit |
|
|
418.0 |
|
|
|
438.3 |
|
|
|
823.1 |
|
|
|
915.3 |
|
Selling, general and administrative expenses |
|
|
185.7 |
|
|
|
199.2 |
|
|
|
407.3 |
|
|
|
404.2 |
|
Amortization expense of intangible assets |
|
|
15.4 |
|
|
|
8.9 |
|
|
|
30.6 |
|
|
|
18.3 |
|
Restructuring charges |
|
|
0.6 |
|
|
|
3.5 |
|
|
|
(0.6 |
) |
|
|
4.0 |
|
Operating profit |
|
|
216.3 |
|
|
|
226.7 |
|
|
|
385.8 |
|
|
|
488.8 |
|
Interest expense, net |
|
|
(68.7 |
) |
|
|
(39.5 |
) |
|
|
(126.5 |
) |
|
|
(78.4 |
) |
Other expense, net |
|
|
(8.4 |
) |
|
|
(30.1 |
) |
|
|
(23.4 |
) |
|
|
(44.3 |
) |
Earnings before income tax provision |
|
|
139.2 |
|
|
|
157.1 |
|
|
|
235.9 |
|
|
|
366.1 |
|
Income tax provision |
|
|
45.3 |
|
|
|
42.7 |
|
|
|
79.1 |
|
|
|
102.1 |
|
Net earnings from continuing operations |
|
|
93.9 |
|
|
|
114.4 |
|
|
|
156.8 |
|
|
|
264.0 |
|
Gain (Loss) on sale of discontinued operations, net of tax |
|
|
5.2 |
|
|
|
(0.5 |
) |
|
|
4.2 |
|
|
|
(0.9 |
) |
Net earnings |
|
$ |
99.1 |
|
|
$ |
113.9 |
|
|
$ |
161.0 |
|
|
$ |
263.1 |
|
Basic: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.65 |
|
|
$ |
0.78 |
|
|
$ |
1.09 |
|
|
$ |
1.80 |
|
Discontinued operations |
|
|
0.04 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
Net earnings per common share - basic |
|
$ |
0.69 |
|
|
$ |
0.78 |
|
|
$ |
1.12 |
|
|
$ |
1.79 |
|
Weighted average common shares outstanding - basic |
|
|
144.5 |
|
|
|
146.0 |
|
|
|
144.3 |
|
|
|
146.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.65 |
|
|
$ |
0.77 |
|
|
$ |
1.08 |
|
|
$ |
1.78 |
|
Discontinued operations |
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
Net earnings per common share - diluted |
|
$ |
0.68 |
|
|
$ |
0.77 |
|
|
$ |
1.11 |
|
|
$ |
1.77 |
|
Weighted average common shares outstanding - diluted |
|
|
144.8 |
|
|
|
147.5 |
|
|
|
144.8 |
|
|
|
148.5 |
|
Sealed Air Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(In USD millions) |
|
June 30, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
285.1 |
|
|
$ |
456.1 |
|
Trade receivables, net |
|
|
468.2 |
|
|
|
592.4 |
|
Income tax receivables |
|
|
44.8 |
|
|
|
40.3 |
|
Other receivables |
|
|
85.4 |
|
|
|
91.5 |
|
Advances and deposits |
|
|
190.2 |
|
|
|
12.7 |
|
Inventories, net |
|
|
938.8 |
|
|
|
866.3 |
|
Current assets held for sale |
|
|
1.1 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
200.3 |
|
|
|
57.5 |
|
Total current assets |
|
|
2,213.9 |
|
|
|
2,116.8 |
|
Property and equipment, net |
|
|
1,410.0 |
|
|
|
1,275.9 |
|
Goodwill |
|
|
2,919.3 |
|
|
|
2,174.5 |
|
Identifiable intangible assets, net |
|
|
463.3 |
|
|
|
138.4 |
|
Deferred taxes |
|
|
122.9 |
|
|
|
141.5 |
|
Operating lease right-of-use-assets |
|
|
92.6 |
|
|
|
70.2 |
|
Other non-current assets |
|
|
302.4 |
|
|
|
297.4 |
|
Total assets |
|
$ |
7,524.4 |
|
|
$ |
6,214.7 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term borrowings |
|
$ |
313.6 |
|
|
$ |
6.6 |
|
Current portion of long-term debt |
|
|
20.7 |
|
|
|
434.0 |
|
Current portion of operating lease liabilities |
|
|
29.2 |
|
|
|
24.0 |
|
Accounts payable |
|
|
793.3 |
|
|
|
865.6 |
|
Accrued restructuring costs |
|
|
6.6 |
|
|
|
14.7 |
|
Income tax payable |
|
|
23.7 |
|
|
|
19.9 |
|
Other current liabilities |
|
|
662.9 |
|
|
|
717.0 |
|
Total current liabilities |
|
|
1,850.0 |
|
|
|
2,081.8 |
|
Long-term debt, less current portion |
|
|
4,636.6 |
|
|
|
3,237.9 |
|
Long-term operating lease liabilities, less current portion |
|
|
66.0 |
|
|
|
49.6 |
|
Deferred taxes |
|
|
70.7 |
|
|
|
33.4 |
|
Other non-current liabilities |
|
|
488.7 |
|
|
|
467.9 |
|
Total liabilities |
|
|
7,112.0 |
|
|
|
5,870.6 |
|
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
23.4 |
|
|
|
23.3 |
|
Additional paid-in capital |
|
|
2,156.3 |
|
|
|
2,155.3 |
|
Retained earnings |
|
|
3,266.3 |
|
|
|
3,163.4 |
|
Common stock in treasury |
|
|
(4,076.0 |
) |
|
|
(4,019.1 |
) |
Accumulated other comprehensive loss, net of taxes |
|
|
(957.6 |
) |
|
|
(978.8 |
) |
Total stockholders’ equity |
|
|
412.4 |
|
|
|
344.1 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,524.4 |
|
|
$ |
6,214.7 |
|
Calculation of Net Debt
(Unaudited)
(In USD millions) |
|
June 30, 2023 |
|
December 31, 2022 |
||||
Short-term borrowings |
|
$ |
313.6 |
|
|
$ |
6.6 |
|
Current portion of long-term debt |
|
|
20.7 |
|
|
|
434.0 |
|
Long-term debt, less current portion |
|
|
4,636.6 |
|
|
|
3,237.9 |
|
Total debt |
|
|
4,970.9 |
|
|
|
3,678.5 |
|
Less: cash and cash equivalents |
|
|
(285.1 |
) |
|
|
(456.1 |
) |
Non- |
|
$ |
4,685.8 |
|
|
$ |
3,222.4 |
|
Sealed Air Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Six Months Ended June 30, |
||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
Net earnings |
|
$ |
161.0 |
|
|
$ |
263.1 |
|
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities(1) |
|
|
154.4 |
|
|
|
186.7 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Trade receivables, net |
|
|
37.5 |
|
|
|
(44.1 |
) |
Inventories, net |
|
|
(19.4 |
) |
|
|
(223.7 |
) |
Accounts payable |
|
|
(95.9 |
) |
|
|
51.1 |
|
Customer advance payments |
|
|
(0.7 |
) |
|
|
(8.3 |
) |
Income tax receivable/payable |
|
|
(4.2 |
) |
|
|
24.6 |
|
Tax deposit |
|
|
(175.0 |
) |
|
|
— |
|
Other assets and liabilities |
|
|
(64.3 |
) |
|
|
(36.5 |
) |
Net cash (used in) provided by operating activities |
|
$ |
(6.6 |
) |
|
$ |
212.9 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(123.7 |
) |
|
|
(118.9 |
) |
Proceeds related to sale of business and property and equipment, net |
|
|
0.7 |
|
|
|
7.1 |
|
Business acquired in purchase transactions, net of cash acquired |
|
|
(1,163.0 |
) |
|
|
(9.7 |
) |
Proceeds (payments) associated with debt, equity and equity method investments |
|
|
3.3 |
|
|
|
(2.2 |
) |
Settlement of foreign currency forward contracts |
|
|
10.3 |
|
|
|
1.5 |
|
Net cash used in investing activities |
|
$ |
(1,272.4 |
) |
|
$ |
(122.2 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Net proceeds from short-term borrowings |
|
|
306.2 |
|
|
|
0.7 |
|
Proceeds from long-term debt |
|
|
1,411.4 |
|
|
|
422.8 |
|
Payments of long-term debt |
|
|
(432.9 |
) |
|
|
(425.0 |
) |
Payments of debt modification/extinguishment costs and other |
|
|
(14.1 |
) |
|
|
(14.7 |
) |
Dividends paid on common stock |
|
|
(60.0 |
) |
|
|
(60.3 |
) |
Impact of tax withholding on share-based compensation |
|
|
(21.0 |
) |
|
|
(24.9 |
) |
Repurchases of common stock |
|
|
(79.9 |
) |
|
|
(250.2 |
) |
Principal payments related to financing leases |
|
|
(4.3 |
) |
|
|
(5.7 |
) |
Net cash provided by (used in) financing activities |
|
$ |
1,105.4 |
|
|
$ |
(357.3 |
) |
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
$ |
2.6 |
|
|
$ |
(13.2 |
) |
Cash and cash equivalents |
|
|
456.1 |
|
|
|
561.0 |
|
Restricted cash and cash equivalents |
|
|
— |
|
|
|
— |
|
Balance, beginning of period |
|
$ |
456.1 |
|
|
$ |
561.0 |
|
Net change during the period |
|
$ |
(171.0 |
) |
|
$ |
(279.8 |
) |
Cash and cash equivalents |
|
|
285.1 |
|
|
|
281.2 |
|
Restricted cash and cash equivalents |
|
|
— |
|
|
|
— |
|
Balance, end of period |
|
$ |
285.1 |
|
|
$ |
281.2 |
|
|
|
|
|
|
||||
Non- |
|
|
|
|
||||
Cash flow from operating activities |
|
$ |
(6.6 |
) |
|
$ |
212.9 |
|
Capital expenditures for property and equipment |
|
|
(123.7 |
) |
|
|
(118.9 |
) |
Non- |
|
$ |
(130.3 |
) |
|
$ |
94.0 |
|
|
|
|
|
|
||||
|
|
Six Months Ended June 30, |
||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
Supplemental Cash Flow Information: |
|
|
|
|
||||
Interest payments, net of amounts capitalized |
|
$ |
119.6 |
|
|
$ |
84.4 |
|
Income tax payments, net of cash refunds(2) |
|
$ |
273.4 |
|
|
$ |
70.9 |
|
Restructuring payments including associated costs |
|
$ |
7.2 |
|
|
$ |
15.4 |
|
Non-cash items: |
|
|
|
|
||||
Transfers of shares of common stock from treasury for profit-sharing contributions |
|
$ |
23.9 |
|
|
$ |
22.7 |
|
-
2023 adjustments primarily consist of depreciation and amortization of
, share-based compensation expense of$115 million , profit sharing expense of$20 million , provision for inventory obsolescence of$13 million , and loss on debt redemption and refinancing activities of$12 million . 2022 adjustments primarily consist of depreciation and amortization of$5 million , impairment of equity investment of$91 million , share-based compensation expense of$32 million , and profit sharing expense of$28 million .$14 million -
Includes the
tax deposit related to a tentative agreement to settle a dispute with the IRS.$175.0 million
Sealed Air Corporation
Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-
Net Earnings and Non-
(Unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||
(In USD millions, except per share data) |
|
Net Earnings |
|
Diluted EPS |
|
Net Earnings |
|
Diluted EPS |
|
Net Earnings |
|
Diluted EPS |
|
Net Earnings |
|
Diluted EPS |
||||||||||
|
|
$ |
93.9 |
|
$ |
0.65 |
|
|
$ |
114.4 |
|
$ |
0.77 |
|
$ |
156.8 |
|
$ |
1.08 |
|
|
$ |
264.0 |
|
$ |
1.78 |
Special Items(1) |
|
|
21.6 |
|
|
0.15 |
|
|
|
34.3 |
|
|
0.23 |
|
|
65.6 |
|
|
0.45 |
|
|
|
52.9 |
|
|
0.36 |
Non- |
|
$ |
115.5 |
|
$ |
0.80 |
|
|
$ |
148.7 |
|
$ |
1.01 |
|
$ |
222.4 |
|
$ |
1.53 |
|
|
$ |
316.9 |
|
$ |
2.13 |
Weighted average number of common shares outstanding - Diluted |
|
|
|
|
144.8 |
|
|
|
|
|
147.5 |
|
|
|
|
144.8 |
|
|
|
|
|
148.5 |
||||
Reconciliation of Adjusted EPS decline to comparable constant currency decline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% decline - Adjusted EPS |
|
|
|
|
(21.0 |
)% |
|
|
|
|
|
|
|
|
(28.1 |
)% |
|
|
|
|
||||||
% currency impact |
|
|
|
|
(1.2 |
)% |
|
|
|
|
|
|
|
|
0.2 |
% |
|
|
|
|
||||||
% comparable constant currency |
|
|
|
|
(22.2 |
)% |
|
|
|
|
|
|
|
|
(27.9 |
)% |
|
|
|
|
- Special Items include items in the table below.
- Adjusted earnings per share for the three and six months ended June 30, 2022 do not sum due to rounding.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||
(In USD millions, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Special Items: |
|
|
|
|
|
|
|
|
Liquibox intangible amortization |
|
|
|
$ — |
|
|
|
$ — |
Liquibox inventory step-up expense |
|
2.4 |
|
— |
|
10.8 |
|
— |
Restructuring charges |
|
0.6 |
|
3.5 |
|
(0.6) |
|
4.0 |
Other restructuring associated costs |
|
0.1 |
|
3.8 |
|
(0.1) |
|
6.9 |
Foreign currency exchange loss due to highly inflationary economies |
|
3.1 |
|
2.7 |
|
5.7 |
|
3.7 |
Loss on debt redemption and refinancing activities |
|
— |
|
10.5 |
|
4.9 |
|
11.2 |
Impairment loss on equity investments |
|
— |
|
16.1 |
|
— |
|
31.6 |
Charges related to acquisition and divestiture activity |
|
4.8 |
|
(0.2) |
|
21.7 |
|
(1.1) |
Other Special Items(i) |
|
0.3 |
|
4.0 |
|
7.8 |
|
— |
Pre-tax impact of Special Items |
|
18.8 |
|
40.4 |
|
62.7 |
|
56.3 |
Tax impact of Special Items and Tax Special Items |
|
2.8 |
|
(6.1) |
|
2.9 |
|
(3.4) |
Net impact of Special Items |
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - Diluted |
|
144.8 |
|
147.5 |
|
144.8 |
|
148.5 |
Loss per share impact from Special Items |
|
|
|
|
|
|
|
|
(i) Other Special Items for the six months ended June 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. Other Special Items for the three and six months ended June 30, 2022 relate to fees paid for professional services, including legal fees, directly associated with Special Items of events that are considered one-time or infrequent in nature. For the six months ended June 30, 2022, the professional fees are offset primarily due to a one-time gain on the disposal of land in the
The calculation of the non-
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
$ |
139.2 |
|
|
$ |
157.1 |
|
|
$ |
235.9 |
|
|
$ |
366.1 |
|
Pre-tax impact of Special Items |
|
|
18.8 |
|
|
|
40.4 |
|
|
|
62.7 |
|
|
|
56.3 |
|
Non- |
|
$ |
158.0 |
|
|
$ |
197.5 |
|
|
$ |
298.6 |
|
|
$ |
422.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
45.3 |
|
|
$ |
42.7 |
|
|
$ |
79.1 |
|
|
$ |
102.1 |
|
Tax Special Items(1) |
|
|
(5.7 |
) |
|
|
(3.1 |
) |
|
|
(12.0 |
) |
|
|
(9.8 |
) |
Tax impact of Special Items |
|
|
2.9 |
|
|
|
9.2 |
|
|
|
9.1 |
|
|
|
13.2 |
|
Non- |
|
$ |
42.5 |
|
|
$ |
48.8 |
|
|
$ |
76.2 |
|
|
$ |
105.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
32.5 |
% |
|
|
27.2 |
% |
|
|
33.5 |
% |
|
|
27.9 |
% |
Non- |
|
|
26.9 |
% |
|
|
24.7 |
% |
|
|
25.5 |
% |
|
|
25.0 |
% |
-
For the three and six months ended June 30, 2023 and three months ended June 30, 2022, Tax Special Items reflect accruals for uncertain tax positions. For the six months ended June 30, 2022, Tax Special Items reflect accruals for uncertain tax positions and nonrecurring intercompany dividend distributions.
Sealed Air Corporation
Components of Change in Net Sales by Segment
(Unaudited)
|
|
Three Months Ended June 30, |
|||||||||||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
Total Company |
|||||||||||||||
2022 Net Sales |
|
$ |
805.8 |
|
|
56.8 |
% |
|
$ |
612.2 |
|
|
43.2 |
% |
|
$ |
1,418.0 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Price |
|
|
23.8 |
|
|
2.9 |
% |
|
|
5.7 |
|
|
0.9 |
% |
|
|
29.5 |
|
|
2.0 |
% |
Volume(1) |
|
|
(1.9 |
) |
|
(0.2 |
)% |
|
|
(115.0 |
) |
|
(18.8 |
)% |
|
|
(116.9 |
) |
|
(8.2 |
)% |
Total organic change (non- |
|
|
21.9 |
|
|
2.7 |
% |
|
|
(109.3 |
) |
|
(17.9 |
)% |
|
|
(87.4 |
) |
|
(6.2 |
)% |
Acquisition |
|
|
75.3 |
|
|
9.4 |
% |
|
|
— |
|
|
— |
% |
|
|
75.3 |
|
|
5.3 |
% |
Total constant dollar change (non- |
|
|
97.2 |
|
|
12.1 |
% |
|
|
(109.3 |
) |
|
(17.9 |
)% |
|
|
(12.1 |
) |
|
(0.9 |
)% |
Foreign currency translation |
|
|
(22.4 |
) |
|
(2.8 |
)% |
|
|
(2.7 |
) |
|
(0.4 |
)% |
|
|
(25.1 |
) |
|
(1.7 |
)% |
Total change ( |
|
|
74.8 |
|
|
9.3 |
% |
|
|
(112.0 |
) |
|
(18.3 |
)% |
|
|
(37.2 |
) |
|
(2.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2023 Net Sales |
|
$ |
880.6 |
|
|
63.8 |
% |
|
$ |
500.2 |
|
|
36.2 |
% |
|
$ |
1,380.8 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Six Months Ended June 30, |
|||||||||||||||||||
(In USD millions) |
|
Food |
|
Protective |
|
Total Company |
|||||||||||||||
2022 Net Sales |
|
$ |
1,613.5 |
|
|
56.9 |
% |
|
$ |
1,222.1 |
|
|
43.1 |
% |
|
$ |
2,835.6 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Price |
|
|
56.6 |
|
|
3.5 |
% |
|
|
15.7 |
|
|
1.3 |
% |
|
|
72.3 |
|
|
2.5 |
% |
Volume(1) |
|
|
(22.8 |
) |
|
(1.4 |
)% |
|
|
(226.4 |
) |
|
(18.5 |
)% |
|
|
(249.2 |
) |
|
(8.7 |
)% |
Total organic change (non- |
|
|
33.8 |
|
|
2.1 |
% |
|
|
(210.7 |
) |
|
(17.2 |
)% |
|
|
(176.9 |
) |
|
(6.2 |
)% |
Acquisition |
|
|
133.2 |
|
|
8.3 |
% |
|
|
— |
|
|
— |
% |
|
|
133.2 |
|
|
4.7 |
% |
Total constant dollar change (non- |
|
|
167.0 |
|
|
10.4 |
% |
|
|
(210.7 |
) |
|
(17.2 |
)% |
|
|
(43.7 |
) |
|
(1.5 |
)% |
Foreign currency translation |
|
|
(46.8 |
) |
|
(3.0 |
)% |
|
|
(15.5 |
) |
|
(1.3 |
)% |
|
|
(62.3 |
) |
|
(2.2 |
)% |
Total change ( |
|
|
120.2 |
|
|
7.4 |
% |
|
|
(226.2 |
) |
|
(18.5 |
)% |
|
|
(106.0 |
) |
|
(3.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2023 Net Sales |
|
$ |
1,733.7 |
|
|
63.5 |
% |
|
$ |
995.9 |
|
|
36.5 |
% |
|
$ |
2,729.6 |
|
|
100.0 |
% |
Components of Change in Net Sales by Region
(Unaudited)
|
|
Three Months Ended June 30, |
||||||||||||||||||||||||||
(In USD millions) |
|
|
|
EMEA |
|
APAC |
|
Total |
||||||||||||||||||||
2022 Net Sales |
|
$ |
948.1 |
|
|
66.9 |
% |
|
$ |
289.5 |
|
|
20.4 |
% |
|
$ |
180.4 |
|
|
12.7 |
% |
|
$ |
1,418.0 |
|
|
100.0 |
% |
Price |
|
|
2.2 |
|
|
0.2 |
% |
|
|
19.3 |
|
|
6.7 |
% |
|
|
8.0 |
|
|
4.4 |
% |
|
|
29.5 |
|
|
2.0 |
% |
Volume(1) |
|
|
(77.3 |
) |
|
(8.1 |
)% |
|
|
(34.2 |
) |
|
(11.8 |
)% |
|
|
(5.4 |
) |
|
(3.0 |
)% |
|
|
(116.9 |
) |
|
(8.2 |
)% |
Total organic change (non- |
|
|
(75.1 |
) |
|
(7.9 |
)% |
|
|
(14.9 |
) |
|
(5.1 |
)% |
|
|
2.6 |
|
|
1.4 |
% |
|
|
(87.4 |
) |
|
(6.2 |
)% |
Acquisition |
|
|
52.5 |
|
|
5.5 |
% |
|
|
14.7 |
|
|
5.0 |
% |
|
|
8.1 |
|
|
4.5 |
% |
|
|
75.3 |
|
|
5.3 |
% |
Total constant dollar change (non- |
|
|
(22.6 |
) |
|
(2.4 |
)% |
|
|
(0.2 |
) |
|
(0.1 |
)% |
|
|
10.7 |
|
|
5.9 |
% |
|
|
(12.1 |
) |
|
(0.9 |
)% |
Foreign currency translation |
|
|
(16.0 |
) |
|
(1.7 |
)% |
|
|
(0.3 |
) |
|
(0.1 |
)% |
|
|
(8.8 |
) |
|
(4.8 |
)% |
|
|
(25.1 |
) |
|
(1.7 |
)% |
Total change ( |
|
|
(38.6 |
) |
|
(4.1 |
)% |
|
|
(0.5 |
) |
|
(0.2 |
)% |
|
|
1.9 |
|
|
1.1 |
% |
|
|
(37.2 |
) |
|
(2.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2023 Net Sales |
|
$ |
909.5 |
|
|
65.9 |
% |
|
$ |
289.0 |
|
|
20.9 |
% |
|
$ |
182.3 |
|
|
13.2 |
% |
|
$ |
1,380.8 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended June 30, |
||||||||||||||||||||||||||
(In USD millions) |
|
|
|
EMEA |
|
APAC |
|
Total |
||||||||||||||||||||
2022 Net Sales |
|
$ |
1,878.3 |
|
|
66.2 |
% |
|
$ |
580.7 |
|
|
20.5 |
% |
|
$ |
376.6 |
|
|
13.3 |
% |
|
$ |
2,835.6 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Price |
|
|
13.2 |
|
|
0.7 |
% |
|
|
42.8 |
|
|
7.4 |
% |
|
|
16.3 |
|
|
4.3 |
% |
|
|
72.3 |
|
|
2.5 |
% |
Volume(1) |
|
|
(168.7 |
) |
|
(9.0 |
)% |
|
|
(57.9 |
) |
|
(10.0 |
)% |
|
|
(22.6 |
) |
|
(6.0 |
)% |
|
|
(249.2 |
) |
|
(8.7 |
)% |
Total organic change (non- |
|
|
(155.5 |
) |
|
(8.3 |
)% |
|
|
(15.1 |
) |
|
(2.6 |
)% |
|
|
(6.3 |
) |
|
(1.7 |
)% |
|
|
(176.9 |
) |
|
(6.2 |
)% |
Acquisition |
|
|
93.3 |
|
|
5.0 |
% |
|
|
25.5 |
|
|
4.4 |
% |
|
|
14.4 |
|
|
3.9 |
% |
|
|
133.2 |
|
|
4.7 |
% |
Total constant dollar change (non- |
|
|
(62.2 |
) |
|
(3.3 |
)% |
|
|
10.4 |
|
|
1.8 |
% |
|
|
8.1 |
|
|
2.2 |
% |
|
|
(43.7 |
) |
|
(1.5 |
)% |
Foreign currency translation |
|
|
(28.5 |
) |
|
(1.5 |
)% |
|
|
(12.6 |
) |
|
(2.2 |
)% |
|
|
(21.2 |
) |
|
(5.7 |
)% |
|
|
(62.3 |
) |
|
(2.2 |
)% |
Total change ( |
|
|
(90.7 |
) |
|
(4.8 |
)% |
|
|
(2.2 |
) |
|
(0.4 |
)% |
|
|
(13.1 |
) |
|
(3.5 |
)% |
|
|
(106.0 |
) |
|
(3.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2023 Net Sales |
|
$ |
1,787.6 |
|
|
65.5 |
% |
|
$ |
578.5 |
|
|
21.2 |
% |
|
$ |
363.5 |
|
|
13.3 |
% |
|
$ |
2,729.6 |
|
|
100.0 |
% |
- 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.
-
Total organic change is a non-
U.S. 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-U.S. GAAP financial measure which excludes the impact of foreign currency translation. Since we are aU.S. domiciled company, we translate our foreign currency denominated financial results intoU.S. dollars. Due to changes in the value of foreign currencies relative to theU.S. dollar, translating our financial results from foreign currencies toU.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.
Sealed Air Corporation
Segment Information
Reconciliation of Net Earnings to Non-
(Unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted EBITDA from continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Food |
|
$ |
191.0 |
|
|
$ |
167.6 |
|
|
$ |
385.8 |
|
|
$ |
368.1 |
|
Adjusted EBITDA Margin |
|
|
21.7 |
% |
|
|
20.8 |
% |
|
|
22.3 |
% |
|
|
22.8 |
% |
Protective |
|
|
95.9 |
|
|
|
126.3 |
|
|
|
176.3 |
|
|
|
253.7 |
|
Adjusted EBITDA Margin |
|
|
19.2 |
% |
|
|
20.6 |
% |
|
|
17.7 |
% |
|
|
20.8 |
% |
Corporate |
|
|
(6.6 |
) |
|
|
(0.5 |
) |
|
|
(14.5 |
) |
|
|
(1.4 |
) |
Non- |
|
$ |
280.3 |
|
|
$ |
293.4 |
|
|
$ |
547.6 |
|
|
$ |
620.4 |
|
Adjusted EBITDA Margin |
|
|
20.3 |
% |
|
|
20.7 |
% |
|
|
20.1 |
% |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
$ |
93.9 |
|
|
$ |
114.4 |
|
|
$ |
156.8 |
|
|
$ |
264.0 |
|
Interest expense, net |
|
|
68.7 |
|
|
|
39.5 |
|
|
|
126.5 |
|
|
|
78.4 |
|
Income tax provision |
|
|
45.3 |
|
|
|
42.7 |
|
|
|
79.1 |
|
|
|
102.1 |
|
Depreciation and amortization, net of adjustments(1) |
|
|
53.6 |
|
|
|
56.4 |
|
|
|
122.5 |
|
|
|
119.6 |
|
Special Items: |
|
|
|
|
|
|
|
|
||||||||
Liquibox intangible amortization |
|
|
7.5 |
|
|
|
— |
|
|
|
12.5 |
|
|
|
— |
|
Liquibox inventory step-up expense |
|
|
2.4 |
|
|
|
— |
|
|
|
10.8 |
|
|
|
— |
|
Restructuring charges |
|
|
0.6 |
|
|
|
3.5 |
|
|
|
(0.6 |
) |
|
|
4.0 |
|
Other restructuring associated costs |
|
|
0.1 |
|
|
|
3.8 |
|
|
|
(0.1 |
) |
|
|
6.9 |
|
Foreign currency exchange loss due to highly inflationary economies |
|
|
3.1 |
|
|
|
2.7 |
|
|
|
5.7 |
|
|
|
3.7 |
|
Loss on debt redemption and refinancing activities |
|
|
— |
|
|
|
10.5 |
|
|
|
4.9 |
|
|
|
11.2 |
|
Impairment loss on equity investments |
|
|
— |
|
|
|
16.1 |
|
|
|
— |
|
|
|
31.6 |
|
Charges related to acquisition and divestiture activity |
|
|
4.8 |
|
|
|
(0.2 |
) |
|
|
21.7 |
|
|
|
(1.1 |
) |
Other Special Items |
|
|
0.3 |
|
|
|
4.0 |
|
|
|
7.8 |
|
|
|
— |
|
Pre-tax impact of Special items |
|
|
18.8 |
|
|
|
40.4 |
|
|
|
62.7 |
|
|
|
56.3 |
|
Non- |
|
$ |
280.3 |
|
|
$ |
293.4 |
|
|
$ |
547.6 |
|
|
$ |
620.4 |
|
Reconciliation of Adjusted EBITDA decline to comparable constant currency decline |
|
|
|
|
|
|
|
|
||||||||
% decline - Adjusted EBITDA |
|
|
(4.5 |
)% |
|
|
|
|
(11.7 |
)% |
|
|
||||
% currency impact |
|
|
(0.6 |
)% |
|
|
|
|
0.2 |
% |
|
|
||||
% comparable constant currency |
|
|
(5.1 |
)% |
|
|
|
|
(11.5 |
)% |
|
|
- Depreciation and amortization by segment are as follows:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
(In USD millions) |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
Food |
|
$ |
41.0 |
|
|
$ |
32.8 |
|
$ |
87.7 |
|
|
$ |
69.3 |
Protective |
|
|
20.1 |
|
|
|
23.6 |
|
|
47.3 |
|
|
|
50.3 |
Consolidated depreciation and amortization(i) |
|
$ |
61.1 |
|
|
$ |
56.4 |
|
$ |
135.0 |
|
|
$ |
119.6 |
Liquibox intangible amortization |
|
|
(7.5 |
) |
|
|
— |
|
|
(12.5 |
) |
|
|
— |
Depreciation and amortization, net of adjustments |
|
$ |
53.6 |
|
|
$ |
56.4 |
|
$ |
122.5 |
|
|
$ |
119.6 |
-
Includes share-based incentive compensation of
and$2.2 million for the three and six months ended June 30, 2023, respectively, and$20.2 million and$10.7 million for the three and six months ended June 30, 2022, respectively.$28.6 million
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808232702/en/
Investors
Brian Sullivan
brian.c.sullivan@sealedair.com
704.503.8841
Louise Lagache
Louise.lagache@sealedair.com
Media
Christina Griffin
christina.griffin@sealedair.com
704.430.5742
Source: SEE
FAQ
What are SEE's financial results for Q2 2023?
What is the Cost take-out to Grow program?
How did the Liquibox acquisition impact SEE's net sales?