Provides 2022 Outlook
Net sales in Q4 of $1.5 billion, up 14% and in 2021 of
$5.5 billion, up 13% Net earnings in Q4 of $169 million, up
23% and in 2021 of $491 million, up 1% Adjusted EBITDA
in Q4 of $330 million, up 18% and in 2021 of $1,132 million, up 8%
EPS in Q4 of $1.12, up 27% and in 2021 of $3.22, up 4%
Adjusted EPS in Q4 of $1.12, up 26% and in 2021 of
$3.55, up 11% Cash flow from operations of $710 million,
down 4% in 2021 Accelerating growth investments, CapEx
of $213 million, up 18%, in 2021
SEE (NYSE: SEE) today reported financial results for the fourth
quarter and full year 2021 and provided its 2022 outlook.
“We delivered strong sales and earnings, overcoming dramatic
inflationary, supply, and COVID challenges. Our results are a
testament to our culture, people, and powerful SEE Operating
Engine.
We are building a world-class, digitally empowered company,
acting like a startup to disrupt the markets we serve, our
industry, and ourselves.
These are exciting times for us. We are making bold moves -
investing in our people, operations, and customers to create
significant value for our stakeholders,” said Ted Doheny, SEE’s
President and CEO.
Unless otherwise stated, all results compare fourth quarter 2021
results to fourth 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 an organic basis and constant dollar basis, which are
non-U.S. GAAP measures. Organic refers to changes in unit volume
and price performance and excludes acquisitions in the first year
after closing, divestiture activity and the impact of currency
translation. Constant dollar refers to changes in net sales and
earnings, 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, adjustments
in the valuation of our "SEE Ventures" portfolio (which may include
debt, equity method, or equity investments), 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.
Fourth Quarter Financial and Business Segment
Highlights
Fourth quarter net sales in Food were $877 million, an increase
of 16% as reported. Currency had an unfavorable impact of $11
million, or 1.5%. On a constant dollar basis, net sales increased
17%, with favorable price of 11% and volume growth of 6%. Higher
volumes, which were experienced across all regions, were mainly led
by favorable demand in food service and automated equipment
solutions. Adjusted EBITDA of $204 million, or 23.3% of net sales,
increased 20% from $170 million, or 22.4% of net sales, in the
prior year. The increase in Adjusted EBITDA was primarily
attributable to higher volumes and favorable price/cost spread.
Fourth quarter net sales in Protective were $655 million, an
increase of 12% as reported. The divestiture of Reflectix, Inc.
(“Reflectix”) and currency fluctuation had an unfavorable impact of
approximately 1% each. On an organic basis, net sales increased
14%, with favorable price of 13% and volume growth of 1%. EMEA
delivered volume growth of 7%, while Americas' volumes were flat
and APAC's were down 4%. Adjusted EBITDA of $126 million, or 19.3%
of net sales, increased 10% from $115 million, or 19.7% of net
sales, in the prior year. The increase in Adjusted EBITDA was
primarily attributable to favorable price/cost spread partially
offset by higher operating costs.
SEE divested Reflectix in fourth quarter 2021. Cash proceeds of
the sale are expected to be approximately $65 million, net of tax
payments of approximately $17 million to be paid in 2022. Reflectix
was a wholly-owned subsidiary that sells branded reflective
insulation solutions, with operations in Markleville, Indiana. The
divestiture of Reflectix is part of SEE’s continued strategic
realignment of its business portfolio.
U.S. GAAP Summary
Fourth Quarter 2021
Net sales of $1.5 billion increased 14% as reported in fourth
quarter 2021. Currency had an unfavorable impact of $16 million, or
1%.
Net earnings were $169 million, or $1.12 per diluted share, in
fourth quarter 2021 as compared to net earnings of $138 million, or
$0.88 per diluted share, in fourth quarter 2020. Fourth quarter
2021 was favorably impacted by Special Items of $1 million. The
after tax gain on the sale of Reflectix was predominantly offset by
restructuring costs and Tax Special Items.
The effective tax rate in fourth quarter 2021 was 31.6%,
compared to 25.6% in fourth quarter 2020, due to the unfavorable
impact from the sale of Reflectix. The prior year effective tax
rate was favorably impacted by the benefit of a valuation allowance
release.
Full Year 2021
Full year 2021 net sales of $5.5 billion increased 13% as
reported. Currency had a favorable impact of $68 million, or
approximately 1%.
Full year 2021 net earnings were $491 million, or $3.22 per
diluted share, as compared to net earnings of $484 million, or
$3.10 per share, in full year 2020. Special Items had an
unfavorable impact of $50 million in 2021, primarily attributable
to Tax Special Items, restructuring related costs, and a loss on
debt redemption, partially offset by the gain on the sale of
Reflectix. Tax Special Items were primarily expense items
attributable to increases in uncertain tax positions and
revaluation of deferred tax assets. Comparatively, Special Items
had an unfavorable impact of $14 million in 2020.
The effective tax rate for full year 2021 was 31.4%, compared to
22.7% for full year 2020. The 2021 effective tax rate included
incremental tax expense items associated with the gain on the sale
of Reflectix and legislative and administrative changes to enacted
foreign statutes. The 2020 effective tax rate included benefits
from U.S. GILTI regulations issued in 2020 and a valuation
allowance release.
Non-U.S. GAAP Summary
Fourth Quarter 2021
Fourth quarter 2021 net sales increased approximately 15%, on a
constant dollar basis benefiting from higher volumes and favorable
price across all regions. Sales growth was led by the Americas,
which increased 20% on an organic basis, followed by EMEA and APAC,
which were up 13% and 4%, respectively.
Adjusted EBITDA was $330 million, or 21.5% of net sales for
fourth quarter 2021, as compared to $279 million, or 20.8% of net
sales for the same period last year. The Adjusted EBITDA
performance was primarily due to favorable price/cost spread and
higher volumes.
The Adjusted Tax Rate was 26.2% in fourth quarter 2021 compared
to 22.3% in fourth quarter 2020. The fourth quarter 2020 Adjusted
Tax Rate included the benefit of a valuation allowance release.
Adjusted earnings per diluted share were $1.12 in fourth quarter
2021, as compared to $0.89 in fourth quarter 2020. The increase in
adjusted earnings per diluted share was primarily attributable to
higher Adjusted EBITDA.
Full Year 2021
Full year 2021 net sales increased 11%, on a constant dollar
basis, benefiting from higher volumes and favorable price across
all regions. Sales growth was led by the Americas, which increased
13% on an organic basis, followed by EMEA and APAC, which were up
12% and 6%, respectively.
Adjusted EBITDA was $1,132 million, or 20.4% of net sales in
2021, compared to $1,051 million, or 21.4% of net sales for full
year 2020. The improvement in Adjusted EBITDA was largely due to
volume growth, partially offset by unfavorable price/cost spread on
input cost inflation.
The Adjusted Tax Rate was 26.1% in 2021, compared to 24.5% in
2020. The 2020 Adjusted Tax Rate was favorably impacted by the
issuance of U.S. GILTI regulations.
Adjusted earnings per diluted share were $3.55 for full year
2021 compared to adjusted earnings per diluted share of $3.19 for
full year 2020.
Cash Flow and Net Debt
Cash flow provided by operating activities during full year 2021
was $710 million, as compared to $737 million during 2020. Capital
expenditures increased to $213 million during full year 2021 to
support growth initiatives, as compared to $181 million during
2020. Free cash flow, defined as net cash provided by operating
activities less capital expenditures, was a source of $497 million
during full year 2021, as compared to a source of $556 million,
during the prior year.
During full year 2021, the Company spent $403 million to
repurchase 7.9 million of its shares, and paid cash dividends of
$116 million.
Net Debt, defined as total debt less cash and cash equivalents,
decreased to $3.1 billion as of December 31, 2021 from $3.2 billion
as of December 31, 2020. As of December 31, 2021, SEE had
approximately $1.7 billion of available liquidity, comprised of
$561 million in cash and $1,141 million of undrawn, committed
credit facilities.
Outlook for Full Year 2022
“We are executing on our strategy to achieve world-class
performance. We are increasing investments in automation, digital
and sustainability to generate attractive returns and drive
double-digit EPS growth, while maintaining a strong balance sheet,”
said Chris Stephens, SEE’s Senior Vice President and Chief
Financial Officer.
For the full year 2022, SEE expects net sales in the range of
$5.8 billion to $6.0 billion, or an increase of 5% to 8%, which
includes an unfavorable currency impact of approximately 2% and
unfavorable divestiture impact of approximately 1%.
Full year Adjusted EBITDA is expected to be in the range of
$1.20 billion to $1.24 billion, which includes an unfavorable
currency impact of approximately 2%.
The Company forecasts full year Adjusted EPS to be in the range
of $3.95 to $4.15, which is based on approximately 150 million
shares outstanding and an anticipated Adjusted Tax Rate of
approximately 26%.
Free Cash Flow in 2022 is expected to be in the range of $510
million to $550 million, with capital expenditures in the range of
$240 million to $260 million. Cash tax payments are expected to be
in the range of $205 million to $215 million, reflecting earnings
growth, the unfavorable impact of previous U.S. tax reform, and $17
million on the Reflectix gain.
Conference Call Information
SEE will host a conference call and webcast on Thursday,
February 17, 2022 at 10:00 a.m. (ET) to discuss the Company's
Fourth Quarter and Full Year 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 SEE
Sealed Air (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 systems create a safer,
more resilient and less wasteful global food supply chain, enable
e-commerce, 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 SEE™ Touchless
Automation™ solutions.
SEE’s Operating Model, together with our industry-leading
expertise in materials, engineering and technology, create value
through more sustainable, automated, and digitally connected
packaging solutions.
We are leading the packaging industry in creating a more
environmentally, socially, and economically sustainable future and
have pledged to design or advance 100% of our packaging materials
to be recyclable or reusable by 2025, with a bolder goal to reach
net-zero carbon emissions in our global operations by 2040. Our
Global Impact Report highlights how we are shaping the future of
the packaging industry. We are also committed to a diverse
workforce and inclusive culture through our 2025 Diversity, Equity
and Inclusion pledge.
SEE generated $5.5 billion in sales in 2021 and has
approximately 16,500 employees who serve customers in 114
countries/territories. To learn more, visit 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-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, adjustments in the valuation of our "SEE
Ventures" portfolio (which may include debt, equity method, or
equity investments), 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 and results of operations. 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
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 in this press release for
2021 is preliminary and subject to change prior to the filing of
our upcoming Annual Report on Form 10-K with the Securities and
Exchange Commission.
Sealed Air Corporation
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended
December 31,
Year Ended December
31,
(In USD millions, except per
share data)
2021
2020
2021
2020
Net sales
$
1,531.5
$
1,340.9
$
5,533.8
$
4,903.2
Cost of sales
1,056.1
916.5
3,852.9
3,293.9
Gross profit
475.4
424.4
1,680.9
1,609.3
Selling, general and administrative
expenses
204.6
194.4
772.4
773.7
Gain (Loss) on sale of businesses and
property and equipment
49.1
(0.4
)
45.7
1.0
Amortization expense of intangible
assets
9.7
9.5
38.8
37.5
Restructuring charges
10.0
(0.7
)
14.5
11.0
Operating profit
300.2
220.8
900.9
788.1
Interest expense, net
(40.2
)
(43.7
)
(167.8
)
(174.4
)
Other (expense) income, net
(13.0
)
7.8
(16.9
)
12.5
Earnings before income tax provision
247.0
184.9
716.2
626.2
Income tax provision
78.0
47.4
225.0
142.1
Net earnings from continuing
operations
169.0
137.5
491.2
484.1
Gain on sale of discontinued operations,
net of tax
11.9
4.7
15.6
18.8
Net earnings
$
180.9
$
142.2
$
506.8
$
502.9
Basic:
Continuing operations
$
1.14
$
0.89
$
3.26
$
3.12
Discontinued operations
0.08
0.03
0.10
0.12
Net earnings per common share -
basic
$
1.22
$
0.92
$
3.36
$
3.24
Diluted:
Continuing operations
$
1.12
$
0.88
$
3.22
$
3.10
Discontinued operations
0.08
0.03
0.10
0.12
Net earnings per common share -
diluted
$
1.20
$
0.91
$
3.32
$
3.22
Weighted average number of common shares
outstanding:
Basic
148.3
155.0
150.9
155.2
Diluted
150.3
156.0
152.4
156.0
Sealed Air Corporation
Condensed Consolidated Balance
Sheets
(Unaudited)
(In USD millions)
December 31, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
561.0
$
548.7
Trade receivables, net
620.3
541.0
Income tax receivables
28.8
71.2
Other receivables
83.7
69.5
Inventories, net
725.7
596.7
Current assets held for sale
—
0.3
Prepaid expenses and other current
assets
50.1
54.1
Total current assets
2,069.6
1,881.5
Property and equipment, net
1,232.0
1,189.7
Goodwill
2,189.4
2,222.6
Identifiable Intangible assets, net
152.6
171.0
Deferred taxes
138.4
187.1
Non-current assets held for sale
1.5
—
Operating lease right-of-use-assets
63.8
76.1
Other non-current assets
382.0
355.8
Total assets
$
6,229.3
$
6,083.8
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Short-term borrowings
$
1.3
$
7.2
Current portion of long-term debt
487.2
22.3
Current portion of operating lease
liabilities
21.2
24.3
Accounts payable
959.9
754.2
Accrued restructuring costs
10.2
12.2
Income tax payable
22.7
19.9
Other current liabilities
504.8
527.3
Total current liabilities
2,007.3
1,367.4
Long-term debt, less current portion
3,219.6
3,731.4
Long-term operating lease liabilities,
less current portion
44.5
53.2
Deferred taxes
46.7
31.0
Non-current liabilities held for sale
0.9
—
Other non-current liabilities
661.6
728.3
Total liabilities
5,980.6
5,911.3
Stockholders’ equity:
Preferred stock
—
—
Common stock
23.2
23.2
Additional paid-in capital
2,123.4
2,093.0
Retained earnings
2,790.7
2,400.7
Common stock in treasury
(3,754.7
)
(3,380.9
)
Accumulated other comprehensive loss, net
of taxes
(933.9
)
(963.5
)
Total stockholders’ equity
248.7
172.5
Total liabilities and stockholders’
equity
$
6,229.3
$
6,083.8
Calculation of Net
Debt
(Unaudited)
(In USD millions)
December 31, 2021
December 31, 2020
Short-term borrowings
$
1.3
$
7.2
Current portion of long-term debt
487.2
22.3
Long-term debt, less current portion
3,219.6
3,731.4
Total debt
3,708.1
3,760.9
Less: cash and cash equivalents
(561.0
)
(548.7
)
Non-U.S. GAAP Net debt
$
3,147.1
$
3,212.2
Sealed Air Corporation
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Year Ended December
31,
(In USD millions)
2021
2020
Net earnings
$
506.8
$
502.9
Adjustments to reconcile net earnings to
net cash provided by operating activities(1)
271.3
306.9
Changes in operating assets and
liabilities:
Trade receivables, net
(110.9
)
27.4
Inventories
(165.7
)
(25.2
)
Income tax receivable/payable
45.7
(31.3
)
Accounts payable
206.1
0.8
Customer advance payments
15.1
10.8
Other assets and liabilities
(58.7
)
(55.3
)
Net cash provided by operating
activities
$
709.7
$
737.0
Cash flows from investing activities:
Capital expenditures
$
(213.1
)
$
(181.1
)
Investment in marketable securities
—
13.9
Proceeds related to sale of business and
property and equipment, net(2)
89.4
12.4
Businesses acquired in purchase
transactions, net of cash acquired
(0.1
)
1.2
Payments related to debt, equity, and
equity method investments
(18.0
)
(8.2
)
Settlement of foreign currency forward
contracts
8.4
1.5
Proceeds of corporate owned life
insurance
7.7
—
Other investing activities
—
0.5
Net cash used in investing
activities
$
(125.7
)
$
(159.8
)
Cash flows from financing activities:
Net payments of short-term borrowings
$
(5.9
)
$
(99.0
)
Proceeds from long-term debt
601.5
—
Payments of long-term debt
(610.4
)
(5.6
)
Dividends paid on common stock
(115.6
)
(100.4
)
Repurchases of common stock
(403.1
)
(33.0
)
Payments for debt extinguishment costs
(17.0
)
—
Impact of tax withholding on share-based
compensation
(14.8
)
(11.6
)
Principal payments related to financing
leases
(10.5
)
(11.6
)
Other financing activities
—
(0.5
)
Net cash used in financing
activities
$
(575.8
)
$
(261.7
)
Effect of foreign currency exchange
rate changes on cash and cash equivalents
$
4.1
$
(29.2
)
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
12.3
286.3
Cash and cash equivalents
561.0
548.7
Restricted cash and cash equivalents
—
—
Balance, end of period
$
561.0
$
548.7
Non-U.S. GAAP Free Cash Flow:
Cash flow from operating activities
$
709.7
$
737.0
Capital expenditures for property and
equipment
(213.1
)
(181.1
)
Free Cash Flow
$
496.6
$
555.9
Supplemental Cash Flow Information:
Interest payments, net of amounts
capitalized
$
175.2
$
187.7
Income tax payments, net of cash
refunds
$
112.6
$
102.0
Restructuring payments including
associated costs
$
27.7
$
73.7
Non-cash items:
Transfers of shares of our common stock
from treasury for our profit-sharing plan contributions
$
28.0
$
24.4
________________
(1)
2021 primarily consists of
depreciation and amortization of $186 million, share based
compensation expense of $44 million, increase in deferred taxes of
$37 million, profit sharing expense of $22 million, loss on debt
redemption and refinancing activities of $19 million, partially
offset by gain on sale of businesses / gain from discontinued
operations of $59 million. 2020 primarily consists of depreciation
and amortization of $174 million, share based compensation expense
of $42 million, profit sharing expense of $28 million and $82
million increase in deferred taxes, partially offset by gain on an
equity investment of $15 million.
(2)
Proceeds related to sale of
business and property and equipment during the year ended December
31, 2021, primarily relate to the sale of the Reflectix business
during the fourth quarter 2021.
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 December
31,
Year Ended December
31,
2021
2020
2021
2020
(In USD millions, except per share
data)
Net Earnings
Diluted EPS
Net Earnings
Diluted EPS
Net Earnings
Diluted EPS
Net Earnings
Diluted EPS
U.S. GAAP net earnings and diluted EPS
from continuing operations
$
169.0
$
1.12
$
137.5
$
0.88
$
491.2
$
3.22
$
484.1
$
3.10
Special Items(1)
(1.1
)
(0.01
)
2.1
0.01
49.6
0.33
14.3
0.09
Non-U.S. GAAP adjusted net earnings and
adjusted diluted EPS(2)
$
167.9
$
1.12
$
139.6
$
0.89
$
540.8
$
3.55
$
498.4
$
3.19
Weighted average number of common
shares outstanding - Diluted
150.3
156.0
152.4
156.0
____________
(1)
Special Items include items in the table below.
(2)
Adjusted earnings per share for the three months ended
December 31, 2021 does not sum due to rounding.
Three Months Ended
December 31,
Year Ended December
31,
(In USD millions, except per share
data)
2021
2020
2021
2020
Special Items:
Restructuring charges
$
10.0
$
(0.7
)
$
14.5
$
11.0
Other restructuring associated costs
1.0
4.5
16.5
19.5
Foreign currency exchange loss due to
highly inflationary economies
0.7
1.5
3.6
4.7
Loss on debt redemption and refinancing
activities
3.9
—
18.6
—
Increase in fair value of equity
investment
—
(15.1
)
(6.6
)
(15.1
)
Impairment of debt investment
8.0
—
8.0
—
Charges related to acquisition and
divestiture activity
0.7
2.0
2.6
7.1
Gain on sale of Reflectix
(45.3
)
—
(45.3
)
—
Other Special Items
1.6
2.5
3.5
6.8
Pre-tax impact of Special Items
(19.4
)
(5.3
)
15.4
34.0
Tax impact of Special Items and Tax
Special Items
18.3
7.4
34.2
(19.7
)
Net impact of Special Items
$
(1.1
)
$
2.1
$
49.6
$
14.3
Weighted average number of common
shares outstanding - Diluted
150.3
156.0
152.4
156.0
Gain (Loss) per share impact from
Special Items
$
0.01
$
(0.01
)
$
(0.33
)
$
(0.09
)
The calculation of the non-U.S. GAAP Adjusted income tax rate is
as follows:
Three Months Ended
December 31,
Year Ended December
31,
(In USD millions)
2021
2020
2021
2020
U.S. GAAP Earnings before income tax
provision from continuing operations
$
247.0
$
184.9
$
716.2
$
626.2
Pre-tax impact of Special Items
(19.4
)
(5.3
)
15.4
34.0
Non-U.S. GAAP Adjusted Earnings before
income tax provision from continuing operations
$
227.6
$
179.6
$
731.6
$
660.2
U.S. GAAP Income tax provision from
continuing operations
$
78.0
$
47.4
$
225.0
$
142.1
Tax Special Items(1)
(8.9
)
(5.9
)
(31.9
)
12.1
Tax impact of Special Items
(9.4
)
(1.5
)
(2.3
)
7.6
Non-U.S. GAAP Adjusted Income tax
provision from continuing operations
$
59.7
$
40.0
$
190.8
$
161.8
U.S. GAAP Effective income tax rate
31.6
%
25.6
%
31.4
%
22.7
%
Non-U.S. GAAP Adjusted income tax rate
26.2
%
22.3
%
26.1
%
24.5
%
_____________
(1)
For the year ended December 31,
2021, Tax Special Items consist primarily of expense items
attributable to increases in uncertain tax positions and
revaluation of deferred tax assets for foreign legislation changes.
For the year ended December 31, 2020, Tax Special Items reflect net
benefits from audit settlements and retroactive application of
GILTI regulations released in 2020.
Sealed Air Corporation
Components of Change in Net
Sales by Segment
(Unaudited)
Three Months Ended December
31,
(In USD millions)
Food
Protective
Total Company
2020 Net Sales
$
757.4
56.5
%
$
583.5
43.5
%
$
1,340.9
100.0
%
Price
82.8
11.0
%
78.5
13.4
%
161.3
12.0
%
Volume(1)
47.2
6.2
%
5.1
0.9
%
52.3
3.9
%
Total organic change (non-U.S.
GAAP)(2)
130.0
17.2
%
83.6
14.3
%
213.6
15.9
%
Divestiture
—
—
%
(7.4
)
(1.2
)%
(7.4
)
(0.5
)%
Total constant dollar change
(non-U.S.GAAP)(2)
130.0
17.2
%
76.2
13.1
%
206.2
15.4
%
Foreign currency translation
(10.9
)
(1.5
)%
(4.7
)
(0.8
)%
(15.6
)
(1.2
)%
Total change (U.S. GAAP)
119.1
15.7
%
71.5
12.3
%
190.6
14.2
%
2021 Net Sales
$
876.5
57.2
%
$
655.0
42.8
%
$
1,531.5
100.0
%
Year Ended December
31,
(In USD millions)
Food
Protective
Total Company
2020 Net Sales
$
2,825.5
57.6
%
$
2,077.7
42.4
%
$
4,903.2
100.0
%
Price
141.9
5.0
%
154.4
7.5
%
296.3
6.0
%
Volume(1)
113.1
4.0
%
160.7
7.7
%
273.8
5.6
%
Total organic change (non-U.S.
GAAP)(2)
255.0
9.0
%
315.1
15.2
%
570.1
11.6
%
Divestiture
—
—
%
(7.4
)
(0.4
)%
(7.4
)
(0.1
)%
Total constant dollar change
(non-U.S.GAAP)(2)
255.0
9.0
%
307.7
14.8
%
562.7
11.5
%
Foreign currency translation
32.3
1.2
%
35.6
1.7
%
67.9
1.4
%
Total change (U.S. GAAP)
287.3
10.2
%
343.3
16.5
%
630.6
12.9
%
2021 Net Sales
$
3,112.8
56.3
%
$
2,421.0
43.7
%
$
5,533.8
100.0
%
_____________
(1)
Our volume reported above includes the net impact of changes
in unit volume as well as the period-to-period change in the mix of
products sold.
(2)
Total organic change is a non-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 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.
Sealed Air Corporation
Components of Change in Net
Sales by Region(1)
(Unaudited)
Three Months Ended December
31,
(In USD millions)
Americas
EMEA
APAC
Total
2020 Net Sales
$
833.9
62.2
%
$
290.5
21.7
%
$
216.5
16.1
%
$
1,340.9
100.0
%
Price
142.0
17.0
%
13.7
4.7
%
5.6
2.6
%
161.3
12.0
%
Volume(2)
23.8
2.9
%
24.8
8.5
%
3.7
1.7
%
52.3
3.9
%
Total organic change (non-U.S.
GAAP)(3)
165.8
19.9
%
38.5
13.2
%
9.3
4.3
%
213.6
15.9
%
Divestiture
(7.4
)
(0.9
)%
—
—
%
—
—
%
(7.4
)
(0.5
)%
Total constant dollar change (non-U.S.
GAAP)(3)
158.4
19.0
%
38.5
13.2
%
9.3
4.3
%
206.2
15.4
%
Foreign currency translation
(5.3
)
(0.6
)%
(7.7
)
(2.6
)%
(2.6
)
(1.2
)%
(15.6
)
(1.2
)%
Total change (U.S. GAAP)
153.1
18.4
%
30.8
10.6
%
6.7
3.1
%
190.6
14.2
%
2021 Net Sales
$
987.0
64.4
%
$
321.3
21.0
%
$
223.2
14.6
%
$
1,531.5
100.0
%
Year Ended December
31,
(In USD millions)
Americas
EMEA
APAC
Total
2020 Net Sales
$
3,135.6
64.0
%
$
1,031.6
21.0
%
$
736.0
15.0
%
$
4,903.2
100.0
%
Price
262.4
8.4
%
26.7
2.6
%
7.2
1.0
%
296.3
6.0
%
Volume(2)
139.9
4.4
%
100.3
9.7
%
33.6
4.5
%
273.8
5.6
%
Total organic change (non-U.S.
GAAP)(3)
402.3
12.8
%
127.0
12.3
%
40.8
5.5
%
570.1
11.6
%
Divestiture
(7.4
)
(0.2
)%
—
—
%
—
—
%
(7.4
)
(0.1
)%
Total constant dollar change (non-U.S.
GAAP)(3)
394.9
12.6
%
127.0
12.3
%
40.8
5.5
%
562.7
11.5
%
Foreign currency translation
(8.2
)
(0.3
)%
41.4
4.0
%
34.7
4.7
%
67.9
1.4
%
Total change (U.S. GAAP)
386.7
12.3
%
168.4
16.3
%
75.5
10.2
%
630.6
12.9
%
2021 Net Sales
$
3,522.3
63.6
%
$
1,200.0
21.7
%
$
811.5
14.7
%
$
5,533.8
100.0
%
____________
(1)
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.
(2)
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.
(3)
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 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.
Sealed Air Corporation
Segment Information
Reconciliation of Net Earnings
to Non-U.S. GAAP Consolidated Adjusted EBITDA
(Unaudited)
Three Months Ended
December 31,
Year Ended December
31,
(In USD millions)
2021
2020
2021
2020
Adjusted EBITDA from continuing
operations:
Food
$
204.0
$
169.7
$
688.4
$
647.5
Adjusted EBITDA Margin
23.3
%
22.4
%
22.1
%
22.9
%
Protective
126.3
115.0
446.2
408.0
Adjusted EBITDA Margin
19.3
%
19.7
%
18.4
%
19.6
%
Corporate
(0.6
)
(6.0
)
(3.0
)
(4.4
)
Non-U.S. GAAP Consolidated Adjusted
EBITDA from continuing operations
$
329.7
$
278.7
$
1,131.6
$
1,051.1
Adjusted EBITDA Margin
21.5
%
20.8
%
20.4
%
21.4
%
Three Months Ended
December 31,
Year Ended December
31,
(In USD millions)
2021
2020
2021
2020
U.S. GAAP Net earnings from continuing
operations
$
169.0
$
137.5
$
491.2
$
484.1
Interest expense, net
40.2
43.7
167.8
174.4
Income tax provision
78.0
47.4
225.0
142.1
Depreciation and amortization(1)
61.9
55.4
232.2
216.5
Special Items:
Restructuring charges
10.0
(0.7
)
14.5
11.0
Other restructuring associated costs
1.0
4.5
16.5
19.5
Foreign currency exchange loss due to
highly inflationary economies
0.7
1.5
3.6
4.7
Loss on debt redemption and refinancing
activities
3.9
—
18.6
—
Increase in fair value of equity
investment
—
(15.1
)
(6.6
)
(15.1
)
Impairment of debt investment
8.0
—
8.0
—
Charges related to acquisition and
divestiture activity
0.7
2.0
2.6
7.1
Gain on sale of Reflectix
(45.3
)
—
(45.3
)
—
Other Special Items
1.6
2.5
3.5
6.8
Pre-tax impact of Special items
(19.4
)
(5.3
)
15.4
34.0
Non-U.S. GAAP Consolidated Adjusted
EBITDA from continuing operations
$
329.7
$
278.7
$
1,131.6
$
1,051.1
____________
(1)
Depreciation and amortization by segment are as follows:
Three Months Ended December
31,
Year Ended December
31,
(In USD millions)
2021
2020
2021
2020
Food
$
32.4
$
31.3
$
129.1
$
122.2
Protective
29.5
24.1
103.1
94.3
Total Company depreciation and
amortization(i)
$
61.9
$
55.4
$
232.2
$
216.5
___________
(i)
Includes share-based incentive
compensation of $11.4 million and $45.8 million for the three
months and year ended December 31, 2021, respectively, and $11.0
million and $42.3 million for the three months and year ended
December 31, 2020, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220217005145/en/
Investor Relations Lori Chaitman lori.chaitman@sealedair.com
516.458.4455 Media Christina Griffin
christina.griffin@sealedair.com 704.430.5742
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