ATLANTA, Jan. 29, 2019 /PRNewswire/ --
Highlights
- Full-year Net Sales were $6,023.0
million versus $4,403.7
million in the prior year.
- Full-year Earnings per Diluted Share were $0.71 versus $0.96
in the prior year.
- Full-year Adjusted Earnings per Diluted Share were $0.81 versus $0.63
in the prior year.
- Full-year Net Income was $221.1
million versus $300.2 million
in the prior year.
- Full-year Adjusted EBITDA was $971.0
million versus $712.2 million
in the prior year.
- Integration of the SBS mill and foodservice assets exceeding
expectations; captured $35 million of
synergies in 2018.
- Completed two additional strategic acquisitions in 2018 for
total consideration of $129
million.
- Returned $230 million to
shareholders in 2018 through dividends and share repurchases,
including $119 million of share
repurchases in the fourth quarter 2018.
- The Board of Directors approved a new $500 million share repurchase program.
Graphic Packaging Holding Company (NYSE: GPK), (the "Company"),
a leading provider of packaging solutions to food, beverage,
foodservice, and consumer products companies, today reported Net
Income for fourth quarter 2018 of $47.5
million, or $0.15 per share,
based upon 306.8 million weighted average diluted shares.
This compares to fourth quarter 2017 Net Income of $173.9 million, or $0.56 per share, based on 311.2 million weighted
average diluted shares.
Fourth quarter 2018 Net Income was negatively impacted by a net
$21.9 million of special charges and
credits, primarily charges associated with the outage at our
Augusta, GA, SBS paperboard mill,
that are detailed in the attached Reconciliation of Non-GAAP
Financial Measures table. When adjusting for these items, Adjusted
Net Income for the fourth quarter of 2018 was $69.4 million, or $0.23 per diluted share. This compares to
Adjusted Net Income for the fourth quarter of 2017 of $52.8 million, or $0.17 per diluted share.
For the full year 2018, Net Income was $221.1 million, or $0.71 per share, based upon 310.1 million
weighted average diluted shares. This compares to 2017 Net
Income of $300.2 million, or
$0.96 per share, based on 311.9
million weighted average diluted shares.
Full year 2018 Net Income was negatively impacted by a net
$30.2 million of special charges and
credits that are detailed in the attached Reconciliation of
Non-GAAP Financial Measures table. When adjusting for these
items, Adjusted Net Income for full year 2018 was $251.3 million, or $0.81 per diluted share. This compares to
Adjusted Net Income for the full year of 2017 of $196.7 million, or $0.63 per diluted share.
"We are very encouraged by the progress we made in 2018,
creating a market leading, highly integrated packaging company well
positioned for ongoing profitable growth in all three paperboard
substrates. Our momentum heading into 2019 is accelerating.
Specifically, the successful integration of the SBS mill and
foodservice assets and resulting strong synergies realization,
profitability improvement for the CRB and CUK mill and global
converting assets in the face of significant commodity input cost
inflation, and successful execution of three strategic capital
expenditure projects," said President and CEO Michael Doss. "In addition, we also completed
the strategic PFP and Letica Foodservice acquisitions while
returning $230 million of capital to
shareholders in 2018 via dividends and share repurchases, including
$119 million in share repurchases
completed in the fourth quarter."
"Fourth quarter Adjusted EBITDA of $248
million was up $56 million
year over year. The SBS mill and foodservice assets, including the
recent Letica acquisition, generated $56
million of Adjusted EBITDA. We are driving improved
profitability across these new assets by successfully executing on
our synergy and integration plans. The pricing to commodity input
cost relationship for the CRB and CUK mill and global converting
assets was $8 million positive during
the quarter and $14 million positive
in the second half of 2018. We successfully executed the planned
and extensive 41 day outage at our Augusta, GA, SBS paperboard mill, and have
started up a new folding carton facility in Monroe, LA. The Monroe facility will be one of the most
productive and flexible folding carton facilities in the world. The
new facility will replace our existing converting and warehouse
infrastructure in the region and is expected to drive $30 million in annual cost efficiencies by
2021."
"Pricing improved during the quarter reflecting the benefits of
recent pricing initiatives. Importantly, we successfully
implemented a third open market price increase this year for our
CRB paperboard during the quarter. We expect the successful price
increases we executed across our CRB, CUK, and SBS paperboard
grades over the course of 2018 will support strong pricing momentum
in 2019. While we continue to expect significant commodity input
cost inflation, we are well positioned to generate improved
profitability in 2019 driven by our pricing, new product
development, and productivity initiatives."
Share Repurchase Program
The Board of Directors has approved a new $500 million share repurchase program. The
$500 million authorization allows for
the repurchase of shares from time to time through open market
purchases, privately negotiated transactions and Rule 10b5-1 plans
in accordance with applicable securities laws. "We will continue to
repurchase our shares opportunistically when the shares are trading
below our estimate of intrinsic value and the returns of share
repurchases compare favorably to other capital allocation
alternatives," said President and CEO Michael Doss.
Operating Results
Net Sales
Net Sales increased 36% to $1,507.7
million in the fourth quarter of 2018, compared to
$1,109.9 million in the prior year
period. The $397.8 million
increase was driven by $362.8 million
of revenue from the SBS mill and foodservice assets including the
Letica acquisition, $21.5 million of
improved volume/mix related primarily to acquisitions, and
$21.8 million of higher pricing.
These benefits were partially offset by $8.3
million of unfavorable foreign exchange.
Net Sales increased 37% to $6,023.0
million for the full year 2018, compared to $4,403.7 million in the prior year period.
The $1,619.3 million increase was
driven by $1,435.1 million of revenue
from the SBS mill and foodservice assets including the Letica
acquisition, $112.2 million of
improved volume/mix related primarily to acquisitions, $52.9 million of higher pricing, and $19.1 million of favorable foreign exchange.
Attached is supplemental data showing Net Tons Sold for each
quarter of 2018 and 2017.
EBITDA
EBITDA for the fourth quarter of 2018 was $210.6 million, or $31.5
million higher than the fourth quarter of 2017. After
adjusting both periods for business combinations and other special
charges and credits, Adjusted EBITDA increased 29% to $248.1 million in the fourth quarter of 2018 from
$192.4 million in the fourth quarter
of 2017. When comparing against the prior year quarter,
Adjusted EBITDA in the fourth quarter of 2018 was positively
impacted by $56.4 million of Adjusted
EBITDA from the SBS mill and foodservice assets including the
Letica acquisition and $21.8 million
of higher pricing. These benefits were partially offset by
$14.0 million of commodity input cost
inflation and $6.5 million of other
inflation (primarily labor and benefits).
EBITDA for the full year 2018 was $908.1
million, or $228.1 million
higher than the full year 2017. After adjusting both periods
for business combinations and other special charges and credits,
Adjusted EBITDA increased 36% to $971.0
million in the full year 2018 from $712.2 million in the full year 2017. When
comparing against the prior year, Adjusted EBITDA in 2018 was
positively impacted by $232.6 million
of Adjusted EBITDA from the SBS mill and foodservice assets
including the Letica acquisition, $52.9
million of higher pricing, and $42.4
million of improved net operating performance. These
benefits were partially offset by $51.9
million of commodity input cost inflation and $21.7 million of other inflation (primarily labor
and benefits).
Other Results
Net Cash Used in Operating Activities was $373.8 million for the full year 2018, compared
to $192.5 million during the full
year 2017. Adjusting for the new GAAP guidelines related to the
classification of certain cash receipts and payments associated
with our receivables securitization and sale programs and the cash
payments associated with special charges, Adjusted Net Cash
Provided by Operating Activities was $814.5
million for the full year 2018, compared to $541.4 million for the full year 2017. Adjusted
Cash Flow was $468.7 million for the
full year 2018, compared to $289.2
million for the full year 2017.
Total Debt (Long-Term, Short-Term and Current Portion) increased
$23.8 million during the fourth
quarter of 2018 to $2,967.7 million
compared to the third quarter 2018. Total Net Debt (Total Debt, net
of Cash and Cash Equivalents) decreased $7.0
million during the fourth quarter of 2018 to $2,897.2 million compared to the third quarter of
2018. The Company's year-end 2018 Net Leverage Ratio was 2.98 times
Adjusted EBITDA, compared to 3.12 times at the end of 2017.
At December 31, 2018, the Company
had available global liquidity of $1,279.6
million, including the undrawn availability under its global
revolving credit facilities.
Net Interest Expense was $33.6
million in the fourth quarter of 2018, up compared to the
$23.3 million reported in the fourth
quarter of 2017, primarily reflecting the $660 million of debt assumed from the combination
with the SBS mill and foodservice assets and higher average
borrowing rates. Full year 2018 Net Interest Expense was
$123.7 million compared to the
$89.7 million reported in 2017,
primarily reflecting the $660 million
of debt assumed from the combination with the SBS mill and
foodservice assets and higher average borrowing rates.
Capital expenditures for the fourth quarter of 2018 were
$125.2 million compared to
$62.3 million in the fourth quarter
of 2017. For full year 2018, capital expenditures were $395.2 million compared to $260.1 million in 2017.
Fourth quarter 2018 Income Tax Expense was $13.3 million, compared to a fourth quarter 2017
Income Tax Benefit of $112.6 million,
which included a $136.0 million tax
benefit related to 2017 tax legislation. Full year 2018 Income Tax
Expense was $54.7 million compared to
a full year 2017 Income Tax Benefit of $45.5
million, which included the $136.0
million tax benefit recorded in the fourth quarter of
2017.
Please note that a tabular reconciliation of EBITDA, Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS,
Adjusted Net Cash Provided by Operating Activities, Adjusted Cash
Flow, Total Net Debt and pro forma Net Leverage Ratio is attached
to this release.
Earnings Call
The Company will host a conference call at 10:00 am eastern time today (January 29, 2019) to discuss the results of
fourth quarter and full year 2018. To access the conference
call, please go to the Investor Relations section of the Graphic
Packaging website: http://www.graphicpkg.com and click the audio
webcast link. For those calling from within North America, dial 800-392-9489 at least 10
minutes prior to the start of the conference call (Conference ID
#1183357). Supporting materials for our conference call have also
been posted to the website. Replays of the call will be
available for one week following the completion of the call and can
be accessed by dialing 855-859-2056.
Forward Looking Statements
Any statements of the Company's expectations in this press
release constitute "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Such statements,
including but not limited to, our expectations for the productivity
and efficiency of the Monroe,
Louisiana facility and continuing input cost inflation are
based on currently available information and are subject to various
risks and uncertainties that could cause actual results to differ
materially from the Company's present expectations. These
risks and uncertainties include inflation of and volatility in raw
material and energy costs, continuing pressure for lower cost
products, the Company's ability to implement its business
strategies, including productivity initiatives and cost reduction
plans, the Company's debt level, currency movements and other risks
of conducting business internationally, the impact of regulatory
and litigation matters, including the continued availability of the
Company's net operating loss offset to taxable income. Undue
reliance should not be placed on such forward-looking statements,
as such statements speak only as of the date on which they are made
and the Company undertakes no obligation to update such statements,
except as required by law. Additional information regarding
these and other risks is contained in the Company's periodic
filings with the SEC.
About Graphic Packaging Holding
Company
Graphic Packaging Holding Company (NYSE: GPK), headquartered in
Atlanta, Georgia, is committed to
providing consumer packaging that makes a world of difference. The
Company is a leading provider of paper-based packaging solutions
for a wide variety of products to food, beverage, foodservice, and
other consumer products companies. The Company operates on a global
basis, is one of the largest producers of folding cartons and
paper-based foodservice products in the
United States, and holds leading market positions in solid
bleached sulfate paperboard, coated unbleached kraft paperboard and
coated recycled paperboard. The Company's customers include many of
the world's most widely-recognized companies and brands. Additional
information about Graphic Packaging, its business and its products
is available on the Company's web site at www.graphicpkg.com.
GRAPHIC PACKAGING
HOLDING COMPANY
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
December
31,
|
December
31,
|
In millions,
except per share amounts
|
2018
|
|
2017
|
2018
|
|
2017
|
Net Sales
|
$
|
1,507.7
|
|
|
$
|
1,109.9
|
|
$
|
6,023.0
|
|
|
$
|
4,403.7
|
|
Cost of
Sales
|
1,276.6
|
|
|
936.4
|
|
5,077.0
|
|
|
3,696.1
|
|
Selling, General and
Administrative
|
113.1
|
|
|
78.0
|
|
465.7
|
|
|
345.6
|
|
Other Expense,
Net
|
3.1
|
|
|
1.6
|
|
7.2
|
|
|
3.0
|
|
Business
Combinations, Gain on Sale of Assets, and Shutdown and
Other
Special Charges, Net
|
7.4
|
|
|
12.8
|
|
14.9
|
|
|
31.1
|
|
Income from
Operations
|
107.5
|
|
|
81.1
|
|
458.2
|
|
|
327.9
|
|
Nonoperating Pension
and Postretirement Benefit Income
|
2.5
|
|
|
3.1
|
|
14.9
|
|
|
14.8
|
|
Interest Expense,
Net
|
(33.6)
|
|
|
(23.3)
|
|
(123.7)
|
|
|
(89.7)
|
|
Loss on Modification
or Extinguishment of Debt
|
—
|
|
|
—
|
|
(1.9)
|
|
|
—
|
|
Income before Income
Taxes and Equity Income of Unconsolidated Entity
|
76.4
|
|
|
60.9
|
|
347.5
|
|
|
253.0
|
|
Income Tax (Expense)
Benefit
|
(13.3)
|
|
|
112.6
|
|
(54.7)
|
|
|
45.5
|
|
Income before Equity
Income of Unconsolidated Entity
|
63.1
|
|
|
173.5
|
|
292.8
|
|
|
298.5
|
|
Equity Income of
Unconsolidated Entity
|
0.2
|
|
|
0.4
|
|
1.2
|
|
|
1.7
|
|
Net Income
|
$
|
63.3
|
|
|
$
|
173.9
|
|
$
|
294.0
|
|
|
$
|
300.2
|
|
Net Income
Attributable to Noncontrolling Interest
|
(15.8)
|
|
|
—
|
|
(72.9)
|
|
|
—
|
|
Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
47.5
|
|
|
$
|
173.9
|
|
$
|
221.1
|
|
|
$
|
300.2
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to Graphic Packaging Holding
Company — Basic
|
$
|
0.16
|
|
|
$
|
0.56
|
|
$
|
0.71
|
|
|
$
|
0.97
|
|
Net Income Per Share
Attributable to Graphic Packaging Holding
Company — Diluted
|
$
|
0.15
|
|
|
$
|
0.56
|
|
$
|
0.71
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding - Basic
|
306.2
|
|
|
310.5
|
|
309.5
|
|
|
311.1
|
|
Weighted Average
Number of Shares Outstanding - Diluted
|
306.8
|
|
|
311.2
|
|
310.1
|
|
|
311.9
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
PRELIMINARY
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
In millions,
except share and per share amounts
|
December 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
|
70.5
|
|
|
$
|
67.4
|
|
Receivables,
Net
|
510.3
|
|
|
321.1
|
|
Inventories,
Net
|
1,014.4
|
|
|
634.0
|
|
Other Current
Assets
|
106.0
|
|
|
147.4
|
|
Total Current
Assets
|
1,701.2
|
|
|
1,169.9
|
|
Property, Plant and
Equipment, Net
|
3,239.7
|
|
|
1,867.2
|
|
Goodwill
|
1,425.6
|
|
|
1,323.0
|
|
Intangible Assets,
Net
|
523.8
|
|
|
436.5
|
|
Other
Assets
|
71.3
|
|
|
66.4
|
|
Total
Assets
|
$
|
6,961.6
|
|
|
$
|
4,863.0
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-Term Debt and
Current Portion of Long-Term Debt
|
$
|
52.0
|
|
|
$
|
61.3
|
|
Accounts
Payable
|
711.6
|
|
|
516.5
|
|
Other Accrued
Liabilities
|
342.3
|
|
|
273.6
|
|
Total Current
Liabilities
|
1,105.9
|
|
|
851.4
|
|
Long-Term
Debt
|
2,905.1
|
|
|
2,213.2
|
|
Deferred Income Tax
Liabilities
|
469.1
|
|
|
321.8
|
|
Other Noncurrent
Liabilities
|
194.1
|
|
|
184.7
|
|
|
|
|
|
Redeemable
Noncontrolling Interest
|
275.8
|
|
|
—
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Preferred Stock, par
value $.01 per share; 100,000,000 shares authorized; no shares
issued or
outstanding
|
—
|
|
|
—
|
|
Common Stock, par
value $.01 per share; 1,000,000,000 shares authorized; 299,891,585
and
309,715,624 shares issued and
outstanding at December 31, 2018 and December 31, 2017,
respectively
|
3.0
|
|
|
3.1
|
|
Capital in Excess of
Par Value
|
1,937.5
|
|
|
1,683.6
|
|
Retained Earnings
(Accumulated Deficit)
|
10.0
|
|
|
(56.0)
|
|
Accumulated Other
Comprehensive Loss
|
(377.9)
|
|
|
(338.8)
|
|
Total Graphic
Packaging Holding Company Shareholders' Equity
|
1,572.6
|
|
|
1,291.9
|
|
Noncontrolling
Interest
|
439.0
|
|
|
—
|
|
Total
Equity
|
2,011.6
|
|
|
1,291.9
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
6,961.6
|
|
|
$
|
4,863.0
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
PRELIMINARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
In
millions
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net Income
|
$
|
294.0
|
|
|
$
|
300.2
|
|
Adjustments to
Reconcile Net Income to Net Cash Used in Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
430.6
|
|
|
330.3
|
|
Amortization of
Deferred Debt Issuance Costs
|
4.4
|
|
|
5.1
|
|
Deferred Income
Taxes
|
26.0
|
|
|
(54.0)
|
|
Amount of
Postretirement Expense Less Than Funding
|
(4.7)
|
|
|
(127.1)
|
|
Gain on the Sale of
Assets, net
|
(38.6)
|
|
|
(3.7)
|
|
Other, Net
|
35.3
|
|
|
2.0
|
|
Changes in Operating
Assets and Liabilities, Net of Acquisitions
|
(1,120.8)
|
|
|
(645.3)
|
|
Net Cash Used in
Operating Activities
|
(373.8)
|
|
|
(192.5)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
Spending
|
(378.8)
|
|
|
(240.9)
|
|
Packaging Machinery
Spending
|
(16.4)
|
|
|
(19.2)
|
|
Acquisition of
Businesses, Net of Cash Acquired
|
(89.4)
|
|
|
(189.4)
|
|
Proceeds Received
from Sale of Assets, Net of Selling Costs
|
49.4
|
|
|
7.9
|
|
Beneficial Interest
on Sold Receivables
|
1,476.7
|
|
|
806.1
|
|
Beneficial Interest
Obtained in Exchange for Proceeds
|
(345.5)
|
|
|
(97.4)
|
|
Other, Net
|
(6.9)
|
|
|
1.0
|
|
Net Cash Provided by
Investing Activities
|
689.1
|
|
|
268.1
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Repurchase of Common
Stock
|
(119.1)
|
|
|
(62.1)
|
|
Payments on
Debt
|
(152.4)
|
|
|
(25.0)
|
|
Borrowings under
Revolving Credit Facilities
|
1,876.9
|
|
|
1,202.9
|
|
Payments on Revolving
Credit Facilities
|
(1,787.5)
|
|
|
(1,090.8)
|
|
Debt Issuance
Costs
|
(7.9)
|
|
|
—
|
|
Repurchase of Common
Stock related to Share-Based Payments
|
(4.3)
|
|
|
(10.2)
|
|
Dividends and
Distributions Paid to GPIL Partner
|
(111.0)
|
|
|
(93.4)
|
|
Other, Net
|
(5.4)
|
|
|
8.8
|
|
Net Cash Used In
Financing Activities
|
(310.7)
|
|
|
(69.8)
|
|
Effect of Exchange
Rate Changes on Cash
|
(1.5)
|
|
|
2.5
|
|
Net Increase in Cash
and Cash Equivalents
|
3.1
|
|
|
8.3
|
|
Cash and Cash
Equivalents at Beginning of Year
|
67.4
|
|
|
59.1
|
|
CASH AND CASH
EQUIVALENTS AT END OF YEAR
|
$
|
70.5
|
|
|
$
|
67.4
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
Reconciliation of
Non-GAAP Financial Measures
|
|
The tables below set
forth the calculation of the Company's earnings before interest
expense, income tax expense, equity income of unconsolidated
entities, depreciation and amortization, including pension
amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash
Provided by Operating Activities, Adjusted Cash Flow, Net Leverage
Ratio and Total Net Debt. Adjusted EBITDA and Adjusted Net Income
exclude charges (income) associated with: the Company's business
combinations, facility shutdowns, extended mill outage, sale of
assets and other special charges. The Company's management believes
that the presentation of EBITDA, Adjusted EBITDA, Adjusted Net
Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by
Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio
provides useful information to investors because these measures are
regularly used by management in assessing the Company's
performance. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted
Earnings Per Share, Adjusted Net Cash Provided by Operating
Activities, Adjusted Cash Flow, and Net Leverage Ratio are
financial measures not calculated in accordance with generally
accepted accounting principles in the United States ("GAAP"), and
are not measures of net income, operating income, operating
performance or liquidity presented in accordance with
GAAP.
|
|
EBITDA, Adjusted
EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted
Net Cash Provided by Operating Activities, Adjusted Cash Flow, and
Net Leverage Ratio should be considered in addition to results
prepared in accordance with GAAP, but should not be considered
substitutes for or superior to GAAP results. In addition, our
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per
Share, Adjusted Net Cash Provided by Operating Activities, Adjusted
Cash Flow, and Net Leverage Ratio may not be comparable to Adjusted
EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate such measures in the
same manner as we do.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
In millions,
except per share amounts
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
47.5
|
|
|
$
|
173.9
|
|
|
$
|
221.1
|
|
|
$
|
300.2
|
|
Add
(Subtract):
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest
|
15.8
|
|
|
—
|
|
|
72.9
|
|
|
—
|
|
Income Tax
Expense
|
13.3
|
|
|
(112.6)
|
|
|
54.7
|
|
|
(45.5)
|
|
Equity Income of
Unconsolidated Entity
|
(0.2)
|
|
|
(0.4)
|
|
|
(1.2)
|
|
|
(1.7)
|
|
Interest Expense,
Net
|
33.6
|
|
|
23.3
|
|
|
123.7
|
|
|
89.7
|
|
Depreciation and
Amortization
|
100.6
|
|
|
94.9
|
|
|
436.9
|
|
|
337.3
|
|
EBITDA
|
210.6
|
|
|
179.1
|
|
|
908.1
|
|
|
680.0
|
|
Gain on Sale of
Assets
|
—
|
|
|
(3.7)
|
|
|
(38.6)
|
|
|
(3.7)
|
|
Charges Associated
with Business Combinations and Shutdown and Other
Special Charges (a)
|
7.9
|
|
|
17.0
|
|
|
70.0
|
|
|
35.9
|
|
Extended Augusta Mill
Outage
|
29.6
|
|
|
—
|
|
|
29.6
|
|
|
—
|
|
Loss on Modification
or Extinguishment of Debt
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
248.1
|
|
|
$
|
192.4
|
|
|
$
|
971.0
|
|
|
$
|
712.2
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (Adjusted EBITDA/Net Sales)
|
16.5
|
%
|
|
17.3
|
%
|
|
16.1
|
%
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
47.5
|
|
|
$
|
173.9
|
|
|
$
|
221.1
|
|
|
$
|
300.2
|
|
Gain on Sale of
Assets
|
—
|
|
|
(3.7)
|
|
|
(38.6)
|
|
|
(3.7)
|
|
Charges Associated
with Business Combinations and Shutdown and Other
Special Charges (a)
|
7.9
|
|
|
17.0
|
|
|
70.0
|
|
|
35.9
|
|
Accelerated
Depreciation Related to Shutdown
|
—
|
|
|
9.2
|
|
|
—
|
|
|
16.3
|
|
Extended Augusta Mill
Outage
|
29.6
|
|
|
—
|
|
|
29.6
|
|
|
—
|
|
Loss on Modification
or Extinguishment of Debt
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
Tax Impact of Gain on
Sale of Assets, Extended Augusta Mill Outage,
Business Combinations, Shutdown and Other Special Charges,
Accelerated
Depreciation and Loss on Modification or Extinguishment of
Debt
|
(7.9)
|
|
|
(7.6)
|
|
|
(13.5)
|
|
|
(16.0)
|
|
Tax Reform
|
—
|
|
|
(136.0)
|
|
|
(10.9)
|
|
|
(136.0)
|
|
Noncontrolling
Interest, Net of Tax
|
(7.7)
|
|
|
—
|
|
|
(8.3)
|
|
|
—
|
|
Adjusted Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
69.4
|
|
|
$
|
52.8
|
|
|
$
|
251.3
|
|
|
$
|
196.7
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share - Basic
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.81
|
|
|
$
|
0.63
|
|
Adjusted Earnings Per
Share - Diluted
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.81
|
|
|
$
|
0.63
|
|
|
(a)
For the three months ended December 31, 2018 and December 31, 2017,
$0.5 million is recorded in costs of sales for inventory
valuation adjustments related
to business combinations. For the twelve months ended
December 31, 2018 and December 31, 2017,
$16.5 million and $1.1
million, respectively, is recorded in costs of sales for inventory
valuation adjustments related to business
combinations.
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
Reconciliation of
Non-GAAP Financial Measures
|
(Continued)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In
millions
|
2018
|
|
2017
|
|
2016
|
Net Income
|
$
|
221.1
|
|
|
$
|
300.2
|
|
|
$
|
228.0
|
|
Add
(Subtract):
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest
|
72.9
|
|
|
—
|
|
|
—
|
|
Income Tax (Benefit)
Expense
|
54.7
|
|
|
(45.5)
|
|
|
93.2
|
|
Equity Income of
Unconsolidated Entities
|
(1.2)
|
|
|
(1.7)
|
|
|
(1.8)
|
|
Interest Expense,
Net
|
123.7
|
|
|
89.7
|
|
|
76.6
|
|
Depreciation and
Amortization
|
436.9
|
|
|
337.3
|
|
|
327.4
|
|
EBITDA
|
908.1
|
|
|
680.0
|
|
|
723.4
|
|
Charges Associated
with Business Combinations and Shutdown and
Other Special Charges
|
70.0
|
|
|
35.9
|
|
|
40.4
|
|
Extended Augusta Mill
Outage
|
29.6
|
|
|
—
|
|
|
—
|
|
Gain on Sale of
Assets, Net
|
(38.6)
|
|
|
(3.7)
|
|
|
—
|
|
Loss on Modification
or Extinguishment of Debt
|
1.9
|
|
|
—
|
|
|
—
|
|
Adjusted
EBITDA
|
971.0
|
|
|
712.2
|
|
|
763.8
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
Calculation of Net
Debt:
|
2018
|
|
2017
|
|
2016
|
Short-Term Debt and
Current Portion of Long-Term Debt
|
$
|
52.0
|
|
|
$
|
61.3
|
|
|
$
|
63.4
|
|
Long-Term
Debt(a)
|
2,915.7
|
|
|
2,225.7
|
|
|
2,104.4
|
|
Less:
|
|
|
|
|
|
Cash and Cash
Equivalents
|
(70.5)
|
|
|
(67.4)
|
|
|
(59.1)
|
|
Total Net
Debt
|
$
|
2,897.2
|
|
|
$
|
2,219.6
|
|
|
$
|
2,108.7
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Total Net Debt/Adjusted EBITDA)
|
2.98
|
|
|
3.12
|
|
|
2.76
|
|
|
(a)
Excludes unamortized deferred debt issue costs.
|
|
Twelve Months
Ended
|
|
December
31,
|
In
millions
|
2018
|
|
2017
|
Net Cash Used in
Operating Activities
|
$
|
(373.8)
|
|
|
$
|
(192.5)
|
|
Net Cash Receipts
from Receivables Sold included in Investing Activities
|
1,131.2
|
|
|
708.7
|
|
Cash Payments
Associated with Business Combinations and Shutdown and Other
Special Charges
|
57.1
|
|
|
25.2
|
|
Adjusted Net Cash
Provided by Operating Activities
|
$
|
814.5
|
|
|
$
|
541.4
|
|
Capital
Spending
|
(395.2)
|
|
|
(260.1)
|
|
Proceeds from Sale of
Assets
|
49.4
|
|
|
7.9
|
|
Adjusted Cash
Flow
|
$
|
468.7
|
|
|
$
|
289.2
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
Unaudited
Supplemental Data
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Tons Sold
(000's)
|
|
963.7
|
|
|
961.1
|
|
|
968.1
|
|
|
923.2
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Tons Sold
(000's)
|
|
726.8
|
|
|
733.9
|
|
|
743.1
|
|
|
720.0
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/graphic-packaging-holding-company-reports-fourth-quarter-and-full-year-2018-results-300785584.html
SOURCE Graphic Packaging Holding Company