Second Quarter 2024 Highlights and Financial Results
- Patrick Kivits joined Sealed Air
as Chief Executive Officer
- Dustin Semach promoted to
President and Chief Financial Officer
- Volume growth in Food driven by strong end-market demand
- Protective volume weakness now expected to persist throughout
2024 into 2025
- CTO2Grow on track to generate $90
million of incremental cost savings for full-year 2024
- Strong generation of cash flow from operations and continued
debt reduction
|
($ millions, except per
share data)
|
|
|
|
|
GAAP
Results
|
Second
Quarter
|
|
|
|
2024
|
2023
|
Reported
△%
|
Constant
Currency △%
|
|
Net Sales
|
$1,345.1
|
$1,380.8
|
(2.6) %
|
(1.7) %
|
|
Net Earnings
|
$97.8
|
$93.9
|
4.2 %
|
|
|
Diluted EPS
|
$0.67
|
$0.65
|
3.1 %
|
|
|
Cash Flow from
Operations (YTD)
|
$313.3
|
$(6.6)
|
|
|
|
|
|
|
|
Non-GAAP
Results
|
Second
Quarter
|
|
|
|
2024
|
2023
|
Reported
△%
|
|
|
Adjusted
EBITDA
|
$285.5
|
$280.3
|
1.9 %
|
|
|
Adjusted Net
Earnings
|
$120.7
|
$115.5
|
4.5 %
|
|
|
Adjusted Diluted
EPS
|
$0.83
|
$0.80
|
3.7 %
|
|
|
Free Cash Flow
(YTD)
|
$207.5
|
$44.7(1)
|
|
|
|
____________________
|
|
(1)
|
2023 excludes the
impact of a $175 million tax deposit to resolve certain U.S. tax
matters.
|
|
|
Unless otherwise
stated, all results compare second quarter 2024 results to second
quarter 2023 results from continuing operations. Year-over-year
financial discussions present operating results from continuing
operations as reported.
|
CHARLOTTE, N.C., Aug. 8, 2024
/PRNewswire/ -- Sealed Air Corporation (NYSE: SEE) announced second
quarter 2024 financial results and business updates.
"Our second quarter results were ahead of our expectations,
reflecting strong sequential demand within our Food business,
accelerated benefits from our CTO2Grow program that more than
offset the continued pressure within our Protective business," said
Patrick Kivits, Sealed Air's CEO. "I
have joined Sealed Air at a pivotal time in its journey. I plan on
accelerating the transformation that began eight months ago to
restore business fundamentals and drive long-term sustainable
growth. Our people are at the center of this transformation and I
want to express my appreciation for their commitment to Sealed Air
and our customers. I am excited about the opportunities ahead of
us."
"For the remainder of the year, our Food businesses' performance
is being offset by weaker than expected volumes within
Protective. At this time, we do not see a catalyst for the
volumes to inflect in Protective and expect this trend to continue
into 2025," said Dustin Semach,
Sealed Air's President and CFO. "We delivered strong free cash flow
in the first half and continued to strengthen the balance sheet,
putting us ahead of pace for free cash flow generation for the full
year."
Second Quarter 2024 Financial Highlights
Net sales of $1.35 billion
decreased 3% as reported, with EMEA decreasing 5%, APAC decreasing
3% and the Americas decreasing 2%. Net sales decreased $24 million, or 2%, on a constant dollar basis.
Price had an unfavorable impact of $41
million, or 3%. Volumes increased by $18 million, or 1%.
Income tax expense was $38
million, resulting in an effective tax rate of 27.8% in the
quarter. This compares to an income tax expense of $45 million in the prior year, or an effective
tax rate of 32.5%. The lower effective tax rate is primarily driven
by lower accruals for uncertain tax positions in the current year.
The Adjusted Tax Rate was 25.5% in the quarter, as compared to
26.9% in the prior year.
Net earnings were $98 million, or
$0.67 per diluted share, as compared
to net earnings of $94 million, or
$0.65 per diluted share in the prior
year. The current year results were impacted by $27 million of Special Items expense, including
$9 million of restructuring and other
associated costs related to the cost take-out to grow program
("CTO2Grow Program"), $8 million
related to the amortization of Liquibox intangible assets and
$7 million loss on debt redemption
and refinancing activities. The prior year results were impacted by
$19 million of Special Items expense,
primarily related to the Liquibox acquisition. Adjusted earnings
per diluted share increased to $0.83,
from $0.80 in the prior year,
primarily due to higher Adjusted EBITDA and lower interest expense,
partially offset by higher depreciation and amortization.
Adjusted EBITDA was $285 million,
or 21.2% of net sales, as compared to $280
million, or 20.3% in the prior year. The increase in
Adjusted EBITDA was primarily due to lower operating costs driven
by productivity benefits as a result of the CTO2Grow Program and
higher volumes, partially offset by unfavorable net price
realization.
Business Segment Highlights
Second quarter net sales in Food were $894 million, an increase of 2% as reported.
Currency fluctuations had an unfavorable impact of $7 million, or 1%. On a constant dollar
basis, net sales increased $21
million, or 2%. Volumes increased $47
million, or 5%, with growth in all regions driven by
strength in end-market demand and share gains within our case ready
solutions. Price had an unfavorable impact of $26 million, or 3%. Adjusted EBITDA of
$205 million, or 22.9% of net sales,
increased 7% from $191 million, or
21.7% of net sales. The increase in Adjusted EBITDA was primarily
attributable to higher volumes.
Second quarter net sales in Protective were $451 million, a decrease of 10% as reported.
Currency fluctuations had an unfavorable impact of $4 million, or 1%. On a constant dollar basis,
net sales decreased $44 million, or
9%. Volumes decreased $29 million, or
6%, resulting from a slowdown in automation sales and continued
weakness in our industrial and fulfillment portfolios. Price had an
unfavorable impact of $15 million, or
3%. Adjusted EBITDA of $82 million,
or 18.1% of net sales, decreased 15% from $96 million, or 19.2% of net sales. The decrease
in Adjusted EBITDA was primarily attributable to lower volumes and
unfavorable net price realization, partially offset by lower
operating costs driven by productivity benefits, including our
CTO2Grow Program.
Cash Flow and Net Debt
Cash flow from operating activities during the first six months
of 2024 was a source of $313 million,
as compared to a use of $7 million
during the prior year period, which included a $175 million tax deposit.
Capital expenditures in the first six months of 2024 were
$106 million, as compared to
$124 million during the prior year
period. Free Cash Flow, defined as net cash from operating
activities less capital expenditures, was a source of $207 million for the first six months of 2024, as
compared to a use of $130 million
during the prior year period. Excluding the $175 million tax deposit, Free Cash Flow was a
source of $45 million for the first
six months of 2023.
Dividend payments for the first six months of both 2024 and 2023
were $60 million.
Total debt was $4.6 billion
as of June 30, 2024 and $4.7
billion as of December 31, 2023. Net Debt, defined as
total debt less cash and cash equivalents, was $4.2 billion as of June 30, 2024 and
$4.3 billion as of December 31,
2023. As of June 30, 2024, SEE had approximately $1.4 billion of available liquidity comprised of
$389 million of cash and $1.0 billion of available and unused lines of
credit under our committed credit facilities. The net leverage
ratio, defined as net debt divided by last twelve months Adjusted
EBITDA, decreased to 3.8x as of June 30, 2024 as compared to
3.9x as of December 31, 2023.
2024 Full Year and Q3 Outlook
|
2024
Outlook
|
Q3
|
Full-Year
|
|
Net Sales
|
$1.33
billion
|
$5.2 to $5.6
billion
|
|
Adjusted
EBITDA
|
$265 million
|
$1.05 to $1.15
billion
|
|
Adjusted EPS
|
$0.67
|
$2.65 to
$3.05
|
|
Free Cash
Flow
|
|
$325 to $425
million
|
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, August 8, 2024 at 10:00 a.m. (ET) to discuss
our Second 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 second 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 $5.5 billion in sales and
has approximately 17,000 employees who serve customers in
115 countries/territories.
www.sealedair.com
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 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 acquisitions within the expected time
frames, greater than expected costs or difficulties related to
acquisition integrations, consumer preferences, the effects of
animal and food-related health issues, the effects of epidemics or
pandemics, negative impacts related to the ongoing conflict between
Russia and Ukraine and related sanctions, export
restrictions and other counteractions thereto, uncertainties
relating to existing or potential increased hostilities in the
Middle East, 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, regulatory actions and legal matters, and other 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
June 30,
|
|
Six Months Ended
June 30,
|
|
(In USD
millions, except per share
data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
|
$
1,345.1
|
|
$
1,380.8
|
|
$
2,674.7
|
|
$
2,729.6
|
|
Cost of
sales
|
|
929.1
|
|
962.8
|
|
1,857.9
|
|
1,906.5
|
|
Gross
profit
|
|
416.0
|
|
418.0
|
|
816.8
|
|
823.1
|
|
Selling, general and
administrative
expenses
|
|
191.6
|
|
185.7
|
|
377.1
|
|
407.3
|
|
Amortization expense of
intangible
assets
|
|
16.3
|
|
15.4
|
|
31.1
|
|
30.6
|
|
Restructuring
charges
|
|
2.5
|
|
0.6
|
|
18.0
|
|
(0.6)
|
|
Operating
profit
|
|
205.6
|
|
216.3
|
|
390.6
|
|
385.8
|
|
Interest expense,
net
|
|
(63.3)
|
|
(68.7)
|
|
(128.4)
|
|
(126.5)
|
|
Other expense,
net
|
|
(6.8)
|
|
(8.4)
|
|
(7.6)
|
|
(23.4)
|
|
Earnings before income
tax provision
|
|
135.5
|
|
139.2
|
|
254.6
|
|
235.9
|
|
Income tax
provision
|
|
37.7
|
|
45.3
|
|
73.4
|
|
79.1
|
|
Net earnings from
continuing
operations
|
|
97.8
|
|
93.9
|
|
181.2
|
|
156.8
|
|
Gain (Loss) on sale of
discontinued
operations, net of tax
|
|
0.5
|
|
5.2
|
|
(0.9)
|
|
4.2
|
|
Net
earnings
|
|
$
98.3
|
|
$
99.1
|
|
$
180.3
|
|
$
161.0
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.67
|
|
$
0.65
|
|
$
1.25
|
|
$
1.09
|
|
Discontinued
operations
|
|
—
|
|
0.04
|
|
(0.01)
|
|
0.03
|
|
Net earnings per
common share -
basic
|
|
$
0.67
|
|
$
0.69
|
|
$
1.24
|
|
$
1.12
|
|
Weighted average common
shares
outstanding - basic
|
|
145.7
|
|
144.5
|
|
145.3
|
|
144.3
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.67
|
|
$
0.65
|
|
$
1.24
|
|
$
1.08
|
|
Discontinued
operations
|
|
—
|
|
0.03
|
|
—
|
|
0.03
|
|
Net earnings per
common share -
diluted
|
|
$
0.67
|
|
$
0.68
|
|
$
1.24
|
|
$
1.11
|
|
Weighted average common
shares
outstanding - diluted
|
|
146.0
|
|
144.8
|
|
145.7
|
|
144.8
|
|
Sealed Air
Corporation
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
(In USD
millions)
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
388.6
|
|
$
346.1
|
|
Trade receivables,
net
|
|
471.5
|
|
442.6
|
|
Income tax
receivables
|
|
20.5
|
|
44.9
|
|
Other
receivables
|
|
96.7
|
|
94.2
|
|
Advances and
deposits
|
|
70.2
|
|
72.8
|
|
Inventories,
net
|
|
806.1
|
|
774.3
|
|
Prepaid expenses and
other current assets
|
|
197.3
|
|
188.4
|
|
Total current
assets
|
|
2,050.9
|
|
1,963.3
|
|
Property and equipment,
net
|
|
1,416.7
|
|
1,416.4
|
|
Goodwill
|
|
2,884.1
|
|
2,892.5
|
|
Identifiable intangible
assets, net
|
|
409.9
|
|
439.0
|
|
Deferred
taxes
|
|
135.3
|
|
130.8
|
|
Operating lease
right-of-use-assets
|
|
97.2
|
|
86.5
|
|
Other non-current
assets
|
|
274.3
|
|
272.1
|
|
Total
assets
|
|
$
7,268.4
|
|
$
7,200.6
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
|
$
134.7
|
|
$
140.7
|
|
Current portion of
long-term debt
|
|
50.6
|
|
35.7
|
|
Current portion of
operating lease liabilities
|
|
28.1
|
|
29.2
|
|
Accounts
payable
|
|
836.6
|
|
764.6
|
|
Accrued restructuring
costs
|
|
18.9
|
|
23.1
|
|
Income tax
payable
|
|
30.5
|
|
28.7
|
|
Other current
liabilities
|
|
474.7
|
|
487.0
|
|
Total current
liabilities
|
|
1,574.1
|
|
1,509.0
|
|
Long-term debt, less
current portion
|
|
4,429.6
|
|
4,513.9
|
|
Long-term operating
lease liabilities, less current portion
|
|
77.3
|
|
66.7
|
|
Deferred
taxes
|
|
34.8
|
|
35.8
|
|
Other non-current
liabilities
|
|
502.5
|
|
525.7
|
|
Total
liabilities
|
|
6,618.3
|
|
6,651.1
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
Common
stock
|
|
15.5
|
|
15.4
|
|
Additional paid-in
capital
|
|
1,431.4
|
|
1,429.5
|
|
Retained
earnings
|
|
617.8
|
|
496.5
|
|
Common stock in
treasury
|
|
(404.2)
|
|
(436.4)
|
|
Accumulated other
comprehensive loss, net of taxes
|
|
(1,010.4)
|
|
(955.5)
|
|
Total stockholders'
equity
|
|
650.1
|
|
549.5
|
|
Total liabilities
and stockholders' equity
|
|
$
7,268.4
|
|
$
7,200.6
|
|
Sealed Air
Corporation
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
Net earnings
|
|
$
180.3
|
|
$
161.0
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities(1)
|
|
154.3
|
|
154.4
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Trade receivables,
net
|
|
(43.2)
|
|
37.5
|
|
Inventories,
net
|
|
(60.2)
|
|
(19.4)
|
|
Accounts
payable
|
|
77.0
|
|
(95.9)
|
|
Customer advance
payments
|
|
(4.9)
|
|
(0.7)
|
|
Income tax
receivable/payable
|
|
26.6
|
|
(4.2)
|
|
Tax deposit
|
|
—
|
|
(175.0)
|
|
Other assets and
liabilities
|
|
(16.6)
|
|
(64.3)
|
|
Net
cash provided by (used in) operating activities
|
|
$
313.3
|
|
$
(6.6)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(105.8)
|
|
(123.7)
|
|
Proceeds related to
sale of business and property and equipment, net
|
|
0.3
|
|
0.7
|
|
Business acquired in
purchase transactions, net of cash acquired
|
|
4.2
|
|
(1,163.0)
|
|
(Payments) proceeds
associated with debt, equity and equity method
investments
|
|
(1.1)
|
|
3.3
|
|
Investment in
marketable securities
|
|
(2.2)
|
|
—
|
|
Settlement of foreign
currency forward contracts
|
|
5.1
|
|
10.3
|
|
Proceeds from
cross-currency swaps
|
|
1.6
|
|
—
|
|
Net cash used in
investing activities
|
|
$
(97.9)
|
|
$
(1,272.4)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net (payments)
proceeds from short-term borrowings
|
|
(2.8)
|
|
306.2
|
|
Proceeds from
long-term debt
|
|
404.0
|
|
1,411.4
|
|
Payments of long-term
debt
|
|
(478.6)
|
|
(432.9)
|
|
Payments of debt
modification/extinguishment costs and other
|
|
(6.8)
|
|
(14.1)
|
|
Dividends paid on
common stock
|
|
(59.6)
|
|
(60.0)
|
|
Impact of tax
withholding on share-based compensation
|
|
(8.0)
|
|
(21.0)
|
|
Repurchases of common
stock
|
|
—
|
|
(79.9)
|
|
Principal payments
related to financing leases
|
|
(3.9)
|
|
(4.3)
|
|
Net cash (used in)
provided by financing activities
|
|
$
(155.7)
|
|
$
1,105.4
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
$
(17.2)
|
|
$
2.6
|
|
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
|
|
$
42.5
|
|
$
(171.0)
|
|
Cash and cash
equivalents
|
|
388.6
|
|
285.1
|
|
Restricted cash and
cash equivalents
|
|
—
|
|
—
|
|
Balance, end of
period
|
|
$
388.6
|
|
$
285.1
|
|
|
|
|
|
|
Non-GAAP Free Cash
Flow:
|
|
|
|
|
|
Cash flow from
operating activities
|
|
$
313.3
|
|
$
(6.6)
|
|
Capital
expenditures
|
|
(105.8)
|
|
(123.7)
|
|
Non-GAAP Free Cash
Flow
|
|
$
207.5
|
|
$
(130.3)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
Interest
payments
|
|
$
154.1
|
|
$
119.6
|
|
Income tax payments,
net of cash refunds(2)
|
|
$
57.0
|
|
$
273.4
|
|
Restructuring payments
including associated costs
|
|
$
31.9
|
|
$
7.2
|
|
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 $120 million,
share-based compensation expense of $15 million, profit sharing
expense of $13 million, provision for inventory obsolescence of $11
million and loss on debt redemption and refinancing activities of
$7 million. 2023 adjustments primarily consist of depreciation and
amortization of $115 million, share-based compensation expense of
$20 million, profit sharing expense of $13 million, provision for
inventory obsolescence of $12 million, and loss on debt redemption
and refinancing activities of $5 million.
|
|
(2)
|
2023 includes a $175
million tax deposit related to the resolution of certain U.S. tax
matters.
|
|
Sealed Air
Corporation
|
|
Components of Change
in Net Sales by Segment
|
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
(In USD
millions)
|
|
Food
|
|
Protective
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$ 880.6
|
|
63.8 %
|
|
$ 500.2
|
|
36.2 %
|
|
$
1,380.8
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
(26.0)
|
|
(3.0) %
|
|
(15.4)
|
|
(3.1) %
|
|
(41.4)
|
|
(3.0) %
|
|
Volume(1)
|
|
46.6
|
|
5.3 %
|
|
(29.1)
|
|
(5.8) %
|
|
17.5
|
|
1.3 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
20.6
|
|
2.3 %
|
|
(44.5)
|
|
(8.9) %
|
|
(23.9)
|
|
(1.7) %
|
|
Foreign currency
translation
|
|
(7.4)
|
|
(0.8) %
|
|
(4.4)
|
|
(0.9) %
|
|
(11.8)
|
|
(0.9) %
|
|
Total change
(GAAP)
|
|
13.2
|
|
1.5 %
|
|
(48.9)
|
|
(9.8) %
|
|
(35.7)
|
|
(2.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
893.8
|
|
66.4 %
|
|
$
451.3
|
|
33.6 %
|
|
$
1,345.1
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(In USD
millions)
|
|
Food
|
|
Protective
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$
1,733.7
|
|
63.5 %
|
|
$ 995.9
|
|
36.5 %
|
|
$
2,729.6
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
(58.9)
|
|
(3.4) %
|
|
(30.0)
|
|
(3.0) %
|
|
(88.9)
|
|
(3.3) %
|
|
Volume(1)
|
|
71.7
|
|
4.1 %
|
|
(47.9)
|
|
(4.8) %
|
|
23.8
|
|
0.9 %
|
|
Total organic change
(non-GAAP)(2)
|
|
12.8
|
|
0.7 %
|
|
(77.9)
|
|
(7.8) %
|
|
(65.1)
|
|
(2.4) %
|
|
Acquisition
|
|
23.5
|
|
1.4 %
|
|
—
|
|
— %
|
|
23.5
|
|
0.9 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
36.3
|
|
2.1 %
|
|
(77.9)
|
|
(7.8) %
|
|
(41.6)
|
|
(1.5) %
|
|
Foreign currency
translation
|
|
(7.8)
|
|
(0.5) %
|
|
(5.5)
|
|
(0.6) %
|
|
(13.3)
|
|
(0.5) %
|
|
Total change
(GAAP)
|
|
28.5
|
|
1.6 %
|
|
(83.4)
|
|
(8.4) %
|
|
(54.9)
|
|
(2.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
1,762.2
|
|
65.9 %
|
|
$
912.5
|
|
34.1 %
|
|
$
2,674.7
|
|
100.0 %
|
|
Components of Change
in Net Sales by Region
|
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
(In USD
millions)
|
|
Americas
|
|
EMEA
|
|
APAC
|
|
Total
|
|
2023 Net
Sales
|
|
$
909.5
|
|
65.9 %
|
|
$
289.0
|
|
20.9 %
|
|
$
182.3
|
|
13.2 %
|
|
$
1,380.8
|
|
100.0 %
|
|
Price
|
|
(27.1)
|
|
(3.0) %
|
|
(12.4)
|
|
(4.3) %
|
|
(1.9)
|
|
(1.0) %
|
|
(41.4)
|
|
(3.0) %
|
|
Volume(1)
|
|
12.9
|
|
1.4 %
|
|
0.7
|
|
0.2 %
|
|
3.9
|
|
2.1 %
|
|
17.5
|
|
1.3 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
(14.2)
|
|
(1.6) %
|
|
(11.7)
|
|
(4.1) %
|
|
2.0
|
|
1.1 %
|
|
(23.9)
|
|
(1.7) %
|
|
Foreign currency
translation
|
|
(1.6)
|
|
(0.1) %
|
|
(3.5)
|
|
(1.2) %
|
|
(6.7)
|
|
(3.7) %
|
|
(11.8)
|
|
(0.9) %
|
|
Total change
(GAAP)
|
|
(15.8)
|
|
(1.7) %
|
|
(15.2)
|
|
(5.3) %
|
|
(4.7)
|
|
(2.6) %
|
|
(35.7)
|
|
(2.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
893.7
|
|
66.4 %
|
|
$
273.8
|
|
20.4 %
|
|
$
177.6
|
|
13.2 %
|
|
$
1,345.1
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(In USD
millions)
|
|
Americas
|
|
EMEA
|
|
APAC
|
|
Total
|
|
2023 Net
Sales
|
|
$
1,787.6
|
|
65.5 %
|
|
$
578.5
|
|
21.2 %
|
|
$
363.5
|
|
13.3 %
|
|
$
2,729.6
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
(62.2)
|
|
(3.5) %
|
|
(24.0)
|
|
(4.2) %
|
|
(2.7)
|
|
(0.7) %
|
|
(88.9)
|
|
(3.3) %
|
|
Volume(1)
|
|
27.3
|
|
1.5 %
|
|
(8.2)
|
|
(1.4) %
|
|
4.7
|
|
1.3 %
|
|
23.8
|
|
0.9 %
|
|
Total organic change
(non-GAAP)(2)
|
|
(34.9)
|
|
(2.0) %
|
|
(32.2)
|
|
(5.6) %
|
|
2.0
|
|
0.6 %
|
|
(65.1)
|
|
(2.4) %
|
|
Acquisition
|
|
17.2
|
|
1.0 %
|
|
4.0
|
|
0.7 %
|
|
2.3
|
|
0.6 %
|
|
23.5
|
|
0.9 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
(17.7)
|
|
(1.0) %
|
|
(28.2)
|
|
(4.9) %
|
|
4.3
|
|
1.2 %
|
|
(41.6)
|
|
(1.5) %
|
|
Foreign currency
translation
|
|
4.7
|
|
0.3 %
|
|
(3.0)
|
|
(0.5) %
|
|
(15.0)
|
|
(4.1) %
|
|
(13.3)
|
|
(0.5) %
|
|
Total change
(GAAP)
|
|
(13.0)
|
|
(0.7) %
|
|
(31.2)
|
|
(5.4) %
|
|
(10.7)
|
|
(2.9) %
|
|
(54.9)
|
|
(2.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
1,774.6
|
|
66.3 %
|
|
$
547.3
|
|
20.5 %
|
|
$
352.8
|
|
13.2 %
|
|
$
2,674.7
|
|
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
June
30,
|
|
Six Months
Ended
June
30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Adjusted EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Food
|
|
$ 204.6
|
|
$ 191.0
|
|
$ 394.2
|
|
$ 385.8
|
|
Adjusted EBITDA
Margin(1)
|
|
22.9 %
|
|
21.7 %
|
|
22.4 %
|
|
22.3 %
|
|
Protective
|
|
81.8
|
|
95.9
|
|
171.3
|
|
176.3
|
|
Adjusted EBITDA
Margin(1)
|
|
18.1 %
|
|
19.2 %
|
|
18.8 %
|
|
17.7 %
|
|
Corporate
|
|
(0.9)
|
|
(6.6)
|
|
(1.7)
|
|
(14.5)
|
|
Non-GAAP
Consolidated Adjusted EBITDA
|
|
$ 285.5
|
|
$ 280.3
|
|
$ 563.8
|
|
$ 547.6
|
|
Adjusted EBITDA
Margin(1)
|
|
21.2 %
|
|
20.3 %
|
|
21.1 %
|
|
20.1 %
|
|
____________________
|
|
(1)
|
Adjusted EBITDA
divided by net sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP Net earnings
from continuing operations
|
|
$
97.8
|
|
$
93.9
|
|
$ 181.2
|
|
$
156.8
|
|
Interest expense,
net
|
|
63.3
|
|
68.7
|
|
128.4
|
|
126.5
|
|
Income tax
provision
|
|
37.7
|
|
45.3
|
|
73.4
|
|
79.1
|
|
Depreciation and
amortization, net of adjustments(1)
|
|
60.1
|
|
53.6
|
|
121.0
|
|
122.5
|
|
Special
Items:
|
|
|
|
|
|
|
|
|
|
Liquibox intangible
amortization
|
|
7.7
|
|
7.5
|
|
15.2
|
|
12.5
|
|
Liquibox inventory
step-up expense
|
|
—
|
|
2.4
|
|
—
|
|
10.8
|
|
Restructuring
charges
|
|
2.5
|
|
0.6
|
|
18.0
|
|
(0.6)
|
|
Other restructuring
associated costs
|
|
6.4
|
|
0.1
|
|
13.2
|
|
(0.1)
|
|
Foreign currency
exchange loss due to highly inflationary economies
|
|
0.6
|
|
3.1
|
|
5.5
|
|
5.7
|
|
Loss on debt
redemption and refinancing activities
|
|
6.8
|
|
—
|
|
6.8
|
|
4.9
|
|
Contract
terminations
|
|
—
|
|
—
|
|
(0.1)
|
|
—
|
|
Charges related to
acquisition and divestiture activity
|
|
1.0
|
|
4.8
|
|
(0.9)
|
|
21.7
|
|
Other Special
Items
|
|
1.6
|
|
0.3
|
|
2.1
|
|
7.8
|
|
Pre-tax impact of
Special items
|
|
26.6
|
|
18.8
|
|
59.8
|
|
62.7
|
|
Non-GAAP
Consolidated Adjusted EBITDA
|
|
$ 285.5
|
|
$
280.3
|
|
$ 563.8
|
|
$
547.6
|
|
____________________
|
|
(1)
|
Depreciation and
amortization by segment are as follows:
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Food
|
|
$
46.3
|
|
$
41.0
|
|
$
93.2
|
|
$
87.7
|
|
Protective
|
|
21.5
|
|
20.1
|
|
43.0
|
|
47.3
|
|
Consolidated
depreciation and amortization(i)
|
|
$
67.8
|
|
$
61.1
|
|
$
136.2
|
|
$
135.0
|
|
Liquibox intangible
amortization
|
|
(7.7)
|
|
(7.5)
|
|
(15.2)
|
|
(12.5)
|
|
Depreciation and
amortization, net of adjustments
|
|
$
60.1
|
|
$
53.6
|
|
$
121.0
|
|
$
122.5
|
|
____________________
|
|
(i)
|
Includes share-based
incentive compensation of $7.2 million and $15.9 million
for the three and six months ended June 30, 2024,
respectively, $2.2 million and $20.2 million for the three and
six months ended June 30, 2023, respectively.
|
The calculation of the non-GAAP Adjusted Tax Rate is as
follows:
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP Earnings before
income tax provision from
continuing operations
|
|
$ 135.5
|
|
$ 139.2
|
|
$ 254.6
|
|
$ 235.9
|
|
Pre-tax impact of
Special Items
|
|
26.6
|
|
18.8
|
|
59.8
|
|
62.7
|
|
Non-GAAP Adjusted
Earnings before income tax
provision
|
|
$ 162.1
|
|
$ 158.0
|
|
$ 314.4
|
|
$ 298.6
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax
provision from continuing
operations
|
|
$
37.7
|
|
$
45.3
|
|
$
73.4
|
|
$
79.1
|
|
Tax Special
Items(1)
|
|
(2.7)
|
|
(5.7)
|
|
(6.8)
|
|
(12.0)
|
|
Tax impact of Special
Items
|
|
6.4
|
|
2.9
|
|
14.3
|
|
9.1
|
|
Non-GAAP Adjusted
Income tax provision
|
|
$
41.4
|
|
$
42.5
|
|
$
80.9
|
|
$
76.2
|
|
|
|
|
|
|
|
|
|
|
GAAP Effective income
tax rate
|
|
27.8 %
|
|
32.5 %
|
|
28.8 %
|
|
33.5 %
|
|
Non-GAAP Adjusted Tax
Rate
|
|
25.5 %
|
|
26.9 %
|
|
25.7 %
|
|
25.5 %
|
|
____________________
|
|
(1)
|
For the three and six
months ended June 30, 2024 and June 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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(In USD millions,
except per
share data)
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
GAAP net earnings
and
diluted EPS from
continuing operations
|
|
$
97.8
|
|
$
0.67
|
|
$
93.9
|
|
$
0.65
|
|
$
181.2
|
|
$
1.24
|
|
$
156.8
|
|
$
1.08
|
|
Special
Items(1)
|
|
22.9
|
|
0.16
|
|
21.6
|
|
0.15
|
|
52.3
|
|
0.36
|
|
65.6
|
|
0.45
|
|
Non-GAAP adjusted
net
earnings and adjusted
diluted EPS
|
|
$
120.7
|
|
$
0.83
|
|
$
115.5
|
|
$
0.80
|
|
$
233.5
|
|
$
1.60
|
|
$
222.4
|
|
$
1.53
|
|
Weighted average
number of
common shares
outstanding - Diluted
|
|
|
|
146.0
|
|
|
|
144.8
|
|
|
|
145.7
|
|
|
|
144.8
|
|
____________________
|
|
(1)
|
Special Items include
items in the table below.
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
(In USD millions,
except per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Special
Items:
|
|
|
|
|
|
|
|
|
|
Liquibox intangible
amortization
|
|
$
7.7
|
|
$
7.5
|
|
$
15.2
|
|
$
12.5
|
|
Liquibox inventory
step-up expense
|
|
—
|
|
2.4
|
|
—
|
|
10.8
|
|
Restructuring
charges
|
|
2.5
|
|
0.6
|
|
18.0
|
|
(0.6)
|
|
Other restructuring
associated costs
|
|
6.4
|
|
0.1
|
|
13.2
|
|
(0.1)
|
|
Foreign currency
exchange loss due to highly
inflationary economies
|
|
0.6
|
|
3.1
|
|
5.5
|
|
5.7
|
|
Loss on debt
redemption and refinancing activities
|
|
6.8
|
|
—
|
|
6.8
|
|
4.9
|
|
Contract
terminations
|
|
—
|
|
—
|
|
(0.1)
|
|
—
|
|
Charges related to
acquisition and divestiture activity(i)
|
|
1.0
|
|
4.8
|
|
(0.9)
|
|
21.7
|
|
Other Special
Items(ii)
|
|
1.6
|
|
0.3
|
|
2.1
|
|
7.8
|
|
Pre-tax impact of
Special Items
|
|
26.6
|
|
18.8
|
|
59.8
|
|
62.7
|
|
Tax impact of Special
Items and Tax Special Items
|
|
(3.7)
|
|
2.8
|
|
(7.5)
|
|
2.9
|
|
Net impact of
Special Items
|
|
$
22.9
|
|
$
21.6
|
|
$
52.3
|
|
$
65.6
|
|
Weighted average
number of common shares
outstanding - Diluted
|
|
146.0
|
|
144.8
|
|
145.7
|
|
144.8
|
|
Loss per share
impact from Special Items
|
|
$
(0.16)
|
|
$
(0.15)
|
|
$
(0.36)
|
|
$
(0.45)
|
|
____________________
|
|
(i)
|
Charges related to
acquisition and divestiture activity for the six months ended June
30, 2024 primarily consists of income recognized on the final
purchase price settlement related to the Liquibox acquisition,
partially offset by integration expenses.
|
|
(ii)
|
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.
|
|
Calculation of Net
Debt
|
|
(Unaudited)
|
|
|
(In USD
millions)
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Short-term
borrowings
|
|
$
134.7
|
|
$
140.7
|
|
Current portion of
long-term debt
|
|
50.6
|
|
35.7
|
|
Long-term debt, less
current portion
|
|
4,429.6
|
|
4,513.9
|
|
Total debt
|
|
4,614.9
|
|
4,690.3
|
|
Less: cash and cash
equivalents
|
|
(388.6)
|
|
(346.1)
|
|
Non-GAAP Net
Debt
|
|
$
4,226.3
|
|
$
4,344.2
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Debt / Last Twelve Months Adjusted EBITDA)
|
|
3.8x
|
|
3.9x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last Twelve Months
Ended
|
|
(In USD
millions)
|
|
June 30,
2024
|
|
December 31,
2023
|
|
GAAP Net earnings
from continuing operations
|
|
$
363.7
|
|
$
339.3
|
|
Interest expense,
net
|
|
264.9
|
|
263.0
|
|
Income tax
provision
|
|
84.7
|
|
90.4
|
|
Depreciation and
amortization, net of adjustments
|
|
238.1
|
|
239.6
|
|
Special
Items:
|
|
|
|
|
|
Liquibox intangible
amortization
|
|
30.6
|
|
27.9
|
|
Liquibox inventory
step-up expense
|
|
(0.6)
|
|
10.2
|
|
Restructuring
charges
|
|
34.2
|
|
15.6
|
|
Other restructuring
associated costs
|
|
47.8
|
|
34.5
|
|
Foreign currency
exchange loss due to highly inflationary economies
|
|
22.9
|
|
23.1
|
|
Loss on debt
redemption and refinancing activities
|
|
15.1
|
|
13.2
|
|
Contract
terminations
|
|
14.5
|
|
14.6
|
|
Charges related to
acquisition and divestiture activity
|
|
5.7
|
|
28.3
|
|
CEO
severance
|
|
6.1
|
|
6.1
|
|
Other Special
Items
|
|
(4.9)
|
|
0.8
|
|
Pre-tax impact of
Special items
|
|
171.4
|
|
174.3
|
|
Non-GAAP
Consolidated Adjusted EBITDA
|
|
$
1,122.8
|
|
$
1,106.6
|
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