ATLANTA, Feb. 2, 2021 /PRNewswire/ --
2020 Highlights
- Vision 2025 goals on track following execution of strategic
investments, development of new, sustainable fiber-based packaging
solutions and the successful pivot to net organic sales
growth.
- Showcased corporate responsibility and long-standing commitment
to sustainability in environmental, social and governance (ESG)
report highlighting progress in sustainability across all facets of
operations.
- Net Sales were $6,560 million
versus $6,160 million in the prior
year.
- Net Organic Sales increased 5% in the fourth quarter and 4% for
the full year 2020 versus the prior year periods.
- Net Income was $167 million
versus $207 million in the prior
year.
- Earnings per Diluted Share were $0.60 versus $0.70
in the prior year.
- Adjusted Earnings per Diluted Share were $1.12 versus $0.87
in the prior year.
- Adjusted EBITDA was $1,070
million versus $1,030 million
in the prior year.
- Global liquidity was $1,717
million at year end.
- Returned $918 million to
stakeholders through dividends, distributions, partnership
redemptions and share repurchases.
Graphic Packaging Holding Company (NYSE: GPK), (the "Company" or
"Graphic Packaging"), a leading provider of sustainable packaging
solutions to food, beverage, foodservice, and other consumer
products companies, today reported Net Income for fourth quarter
2020 of $64.2 million, or
$0.24 per share, based on 270.3
million weighted average diluted shares. This compares to fourth
quarter 2019 Net Income of $33.0
million, or $0.11 per share,
based on 291.7 million weighted average diluted
shares.
Fourth quarter 2020 Net Income was impacted by a net
$12.3 million of special charges,
that are detailed in the attached Reconciliation of Non-GAAP
Financial Measures table. When adjusting for these charges,
Adjusted Net Income for the fourth quarter of 2020 was $76.5 million, or $0.28 per diluted share. This compares to fourth
quarter 2019 Adjusted Net Income of $67.0
million, or $0.23 per diluted
share.
For the full year 2020, Net Income was $167.3 million, or $0.60 per share, based on 279.6 million weighted
average diluted shares. This compares to 2019 Net Income of
$206.8 million, or $0.70 per share, based on 294.8 million weighted
average diluted shares.
Full year 2020 Net Income was impacted by a net $144.7 million of special charges that are
detailed in the attached Reconciliation of Non-GAAP Financial
Measures table. When adjusting for these items, Adjusted Net Income
for full year 2020 was $312.0
million, or $1.12 per diluted
share. This compares to Adjusted Net Income for the full year of
2019 of $255.7 million, or
$0.87 per diluted share.
Michael Doss, the Company's
President and CEO said, "Net organic sales growth of 4% in 2020
confirms our fiber-based packaging solutions are winning in the
growing markets where we are focused. Our strong 2020 results and
the momentum we have entering 2021 are consistent with our Vision
2025 goals. We are partnering with customers to elevate their
brands in the marketplace, while supporting both customer and our
own sustainability goals. The strategic investments we are making
position us for continued growth and cost leadership in the
industry and will allow us to further accelerate our product
innovation capabilities. We expect to generate 100 to 200 basis
points of sustainability supported net organic sales growth in 2021
and deliver net productivity improvements to drive continued EBITDA
growth during the coming year."
Doss continued, "We are also announcing today that we plan to
start up our new CRB machine in Kalamazoo, Michigan ahead of schedule in the
fourth quarter of 2021. Separately, we will be making a strategic
$100 million investment at our
Texarkana, Texas SBS mill to add
CUK production capability to an existing machine to meet growing
demand for our paperboard packaging solutions." He added, "I am
grateful for the dedication of our employees who continue to go
above and beyond to fulfill our responsibility as an essential
supplier to the vital food, beverage, consumer and foodservice
markets. We are delivering on our promise to continue learning and
improving from the events in 2020, and we are answering the call
from today's consumer for safe, hygienic and more sustainable
packaging solutions."
Operating Results
Net Sales
Net Sales increased 8.7% to $1,652.1
million in the fourth quarter of 2020, compared to
$1,519.8 million in the prior year
period. The $132.3 million increase
was driven by $134.2 million of
favorable volume/mix, partially offset by $11.1 million in pricing and $9.1 million of unfavorable foreign exchange.
Net Sales increased 6.5% to $6,559.9
million for the full year 2020, compared to $6,160.1 million in the prior year. The
$399.8 million increase was driven by
$408.0 million of improved volume/mix
from organic growth and acquisitions. These benefits were partially
offset by $1.2 million in pricing and
$7.0 million of unfavorable foreign
exchange.
Attached is supplemental data highlighting Net Tons Sold by
quarter for 2020 and 2019.
EBITDA
EBITDA for the fourth quarter of 2020 was $250.5 million, an increase of $44.9 million from the fourth quarter of 2019.
After adjusting both periods for charges associated with business
combinations, pension plan settlement charges and other special
charges, Adjusted EBITDA increased $6.0
million to $264.8 million in
the fourth quarter of 2020 from $258.8
million in the fourth quarter of 2019. When comparing
against the prior year quarter, Adjusted EBITDA in the fourth
quarter of 2020 was positively impacted by $9.4 million in favorable volume/mix,
$24.9 million in improved net
operating performance and $3.6
million of favorable foreign exchange. These benefits were
partially offset by $11.1 million of
pricing, $8.0 million of commodity
input cost inflation (primarily secondary fiber and freight) and
$12.8 million of other inflation
(primarily labor and benefits).
EBITDA for the full year 2020 was $854.2
million, a decrease of $97.8
million from the full year 2019. After adjusting both
periods for charges associated with business combinations, pension
plan settlement charges and other special charges, Adjusted EBITDA
increased 3.9% to $1,069.8 million in
the full year 2020 from $1,029.9
million in the full year 2019. When comparing against the
prior year, Adjusted EBITDA in 2020 was positively impacted by
$29.6 million of favorable
volume/mix, $22.4 million of
commodity deflation (primarily wood and energy) and $41.5 million of improved net operating
performance. These benefits were partially offset by $1.2 million in pricing and $52.4 million in other inflation (primarily labor
and benefits).
Other Results
Net Cash Provided by Operating Activities was $845.6 million for the full year 2020, compared
to $665.8 million for the full year
2019. Adjusting for 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 $990.8
million for the full year 2020, compared to $880.4 million for the full year 2019. Adjusted
Cash Flow for the full year 2020 was $344.5
million, compared to $527.5
million for the full year 2019.
Total Debt (Long-Term, Short-Term and Current Portion) decreased
$47.3 million during the fourth
quarter of 2020 to $3,666.6 million
compared to the third quarter of 2020. Total Net Debt (Total Debt,
net of Cash and Cash Equivalents) decreased $170.8 million during the fourth quarter of
2020 to $3,487.6 million compared to
the third quarter of 2020. The Company's year-end Net Leverage
Ratio was 3.26 times Adjusted EBITDA compared to 2.64 times at the
end of 2019.
At December 31, 2020, the Company
had available liquidity of $1,716.8
million, including the undrawn availability under its global
revolving credit facilities.
Net Interest Expense was $32.4
million in the fourth quarter of 2020, down compared to the
$34.2 million reported in the fourth
quarter of 2019. For full year 2020, net interest expense was
$128.8 million compared to
$140.6 million in 2019.
Capital expenditures for the fourth quarter of 2020 were
$220.6 million compared to
$123.0 million in the fourth quarter
of 2019. For full year 2020, capital expenditures were $646.3 million compared to $352.9 million in 2019, largely due to the
strategic investment in a new coated recycled board (CRB) paper
machine in Kalamazoo,
Michigan.
Fourth quarter 2020 Income Tax Expense was $20.4 million, compared to a $15.4 million expense in the fourth quarter of
2019. Full year 2020 Income Tax Expense was $41.6 million compared to a full year 2019 Income
Tax Expense of $76.3 million, as a
result of tax planning initiatives and non-recurring 2019
adjustments.
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 and Total Net Debt is attached to this release.
Earnings Call
The Company will host a conference call at 10:00 a.m. ET today (February 2, 2021) to discuss the results of
fourth quarter and full year 2020. The conference call will be
webcast and can be accessed from the Investors section of the
Graphic Packaging website at www.graphicpkg.com.
Participants may also listen via telephone by dialing
833-900-1527 from the United
States and Canada, and
236-384-2052 from outside the United
States and Canada.
Telephone participants are required to provide the conference ID
1263054 and should call at least 10 minutes prior to the start of
the conference call.
Forward Looking Statements
Any statements of the Company's expectations in this press
release, including but not limited to projected organic sales and
EBITDA growth, timing of the new CRB machine start-up in
Kalamazoo, Michigan, and the
planned investment in the Texarkana,
TX SBS mill constitute "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Such statements 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, but are not
limited to, the effects of the Covid-19 pandemic on the Company's
operations and demand for its products, 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, cost reduction
plans, and integration activities, as well as the Company's debt
level, currency movements and other risks of conducting business
internationally and the impact of regulatory and litigation
matters, including the continued availability of the Company's U.S.
federal income tax attributes to offset U.S. federal income taxes
and the timing related to the Company's future U.S. federal income
tax payments. 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 sustainable 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 coated recycled paperboard, coated
unbleached kraft paperboard and solid bleached sulfate 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
|
2020
|
|
2019
|
2020
|
|
2019
|
Net Sales
|
$
|
1,652.1
|
|
|
$
|
1,519.8
|
|
$
|
6,559.9
|
|
|
$
|
6,160.1
|
|
Cost of
Sales
|
1,390.3
|
|
|
1,247.5
|
|
5,459.7
|
|
|
5,067.5
|
|
Selling, General and
Administrative
|
118.5
|
|
|
124.0
|
|
512.6
|
|
|
511.8
|
|
Other (Income) Expense,
Net
|
(0.2)
|
|
|
1.7
|
|
2.0
|
|
|
8.8
|
|
Business Combinations,
Shutdown and Other Special Charges and Exit
Activities, Net
|
13.1
|
|
|
13.6
|
|
61.3
|
|
|
37.9
|
|
Income from
Operations
|
130.4
|
|
|
133.0
|
|
524.3
|
|
|
534.1
|
|
Nonoperating Pension
and Postretirement Expense
|
(0.7)
|
|
|
(39.4)
|
|
(151.5)
|
|
|
(39.5)
|
|
Interest Expense,
Net
|
(32.4)
|
|
|
(34.2)
|
|
(128.8)
|
|
|
(140.6)
|
|
Income before Income
Taxes and Equity Income of Unconsolidated Entity
|
97.3
|
|
|
59.4
|
|
244.0
|
|
|
354.0
|
|
Income Tax
Expense
|
(20.4)
|
|
|
(15.4)
|
|
(41.6)
|
|
|
(76.3)
|
|
Income before Equity
Income of Unconsolidated Entity
|
76.9
|
|
|
44.0
|
|
202.4
|
|
|
277.7
|
|
Equity Income (Loss) of
Unconsolidated Entity
|
0.2
|
|
|
(0.1)
|
|
0.9
|
|
|
0.4
|
|
Net Income
|
$
|
77.1
|
|
|
$
|
43.9
|
|
$
|
203.3
|
|
|
$
|
278.1
|
|
Net Income Attributable
to Noncontrolling Interest
|
(12.9)
|
|
|
(10.9)
|
|
(36.0)
|
|
|
(71.3)
|
|
Net Income Attributable
to Graphic Packaging Holding Company
|
$
|
64.2
|
|
|
$
|
33.0
|
|
$
|
167.3
|
|
|
$
|
206.8
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to Graphic Packaging Holding Company
— Basic
|
$
|
0.24
|
|
|
$
|
0.11
|
|
$
|
0.60
|
|
|
$
|
0.70
|
|
Net Income Per Share
Attributable to Graphic Packaging Holding Company
— Diluted
|
$
|
0.24
|
|
|
$
|
0.11
|
|
$
|
0.60
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding - Basic
|
269.5
|
|
|
290.8
|
|
278.8
|
|
|
294.1
|
|
Weighted Average
Number of Shares Outstanding - Diluted
|
270.3
|
|
|
291.7
|
|
279.6
|
|
|
294.8
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
PRELIMINARY
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
In millions,
except share and per share amounts
|
December
31,
2020
|
|
December
31,
2019
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
|
179.0
|
|
|
$
|
152.9
|
|
Receivables,
Net
|
654.4
|
|
|
504.5
|
|
Inventories,
Net
|
1,127.6
|
|
|
1,095.9
|
|
Other Current
Assets
|
59.2
|
|
|
52.3
|
|
Total Current
Assets
|
2,020.2
|
|
|
1,805.6
|
|
Property, Plant and
Equipment, Net
|
3,560.0
|
|
|
3,253.8
|
|
Goodwill
|
1,477.6
|
|
|
1,477.9
|
|
Intangible Assets,
Net
|
436.9
|
|
|
477.3
|
|
Other Assets
|
309.9
|
|
|
275.3
|
|
Total
Assets
|
$
|
7,804.6
|
|
|
$
|
7,289.9
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-Term Debt and
Current Portion of Long-Term Debt
|
$
|
497.2
|
|
|
$
|
50.4
|
|
Accounts
Payable
|
825.0
|
|
|
716.1
|
|
Other Accrued
Liabilities
|
534.4
|
|
|
432.2
|
|
Total Current
Liabilities
|
1,856.6
|
|
|
1,198.7
|
|
Long-Term
Debt
|
3,147.0
|
|
|
2,809.9
|
|
Deferred Income Tax
Liabilities
|
539.6
|
|
|
511.8
|
|
Other Noncurrent
Liabilities
|
421.1
|
|
|
407.2
|
|
|
|
|
|
Redeemable
Noncontrolling Interest
|
—
|
|
|
304.3
|
|
|
|
|
|
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; 267,726,373
and
290,246,907 shares issued and outstanding at December 31, 2020 and
December 31, 2019,
respectively
|
2.7
|
|
|
2.9
|
|
Capital in Excess of
Par Value
|
1,714.6
|
|
|
1,876.7
|
|
(Accumulated Deficit)
Retained Earnings
|
(47.1)
|
|
|
56.4
|
|
Accumulated Other
Comprehensive Loss
|
(245.9)
|
|
|
(365.8)
|
|
Total Graphic
Packaging Holding Company Shareholders' Equity
|
1,424.3
|
|
|
1,570.2
|
|
Noncontrolling
Interest
|
416.0
|
|
|
487.8
|
|
Total
Equity
|
1,840.3
|
|
|
2,058.0
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
7,804.6
|
|
|
$
|
7,289.9
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
PRELIMINARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
In
millions
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net Income
|
$
|
203.3
|
|
|
$
|
278.1
|
|
Adjustments to
Reconcile Net Income to Net Cash Provided by (Used in) Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
475.8
|
|
|
447.2
|
|
Amortization of
Deferred Debt Issuance Costs
|
5.7
|
|
|
4.7
|
|
Deferred Income
Taxes
|
(0.7)
|
|
|
52.7
|
|
Amount of
Postretirement Expense Greater Than Funding
|
147.1
|
|
|
41.5
|
|
Other, Net
|
12.9
|
|
|
15.1
|
|
Changes in Operating
Assets and Liabilities, Net of Acquisitions
|
1.5
|
|
|
(173.5)
|
|
Net Cash Provided
by Operating Activities
|
845.6
|
|
|
665.8
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
Spending
|
(616.1)
|
|
|
(330.9)
|
|
Packaging Machinery
Spending
|
(30.2)
|
|
|
(22.0)
|
|
Acquisition of
Businesses, Net of Cash Acquired
|
(120.6)
|
|
|
(54.5)
|
|
Beneficial Interest on
Sold Receivables
|
114.6
|
|
|
343.6
|
|
Beneficial Interest
Obtained in Exchange for Proceeds
|
(8.5)
|
|
|
(155.9)
|
|
Other, Net
|
(7.9)
|
|
|
(4.6)
|
|
Net Cash Used in
Investing Activities
|
(668.7)
|
|
|
(224.3)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Repurchase of Common
Stock
|
(315.6)
|
|
|
(128.8)
|
|
Payments on
Debt
|
(36.5)
|
|
|
(36.5)
|
|
Proceeds from Issuance
of Debt
|
800.0
|
|
|
300.0
|
|
Redemption of
Noncontrolling Interest
|
(500.0)
|
|
|
—
|
|
Borrowings under
Revolving Credit Facilities
|
2,613.5
|
|
|
2,497.5
|
|
Payments on Revolving
Credit Facilities
|
(2,596.8)
|
|
|
(2,865.1)
|
|
Debt Issuance
Costs
|
(13.9)
|
|
|
(5.0)
|
|
Repurchase of Common
Stock related to Share-Based Payments
|
(9.1)
|
|
|
(4.1)
|
|
Dividends and
Distributions Paid to GPIP Partner
|
(102.8)
|
|
|
(112.7)
|
|
Other, Net
|
9.2
|
|
|
(6.1)
|
|
Net Cash Used In
Financing Activities
|
(152.0)
|
|
|
(360.8)
|
|
Effect of Exchange Rate
Changes on Cash
|
1.2
|
|
|
1.7
|
|
Net Increase in Cash
and Cash Equivalents
|
26.1
|
|
|
82.4
|
|
Cash and Cash
Equivalents at Beginning of Year
|
152.9
|
|
|
70.5
|
|
CASH AND CASH
EQUIVALENTS AT END OF YEAR
|
$
|
179.0
|
|
|
$
|
152.9
|
|
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
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
64.2
|
|
|
$
|
33.0
|
|
|
$
|
167.3
|
|
|
$
|
206.8
|
|
Add
(Subtract):
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest
|
12.9
|
|
|
10.9
|
|
|
36.0
|
|
|
71.3
|
|
Income Tax
Expense
|
20.4
|
|
|
15.4
|
|
|
41.6
|
|
|
76.3
|
|
Equity (Income) Loss
of Unconsolidated Entity
|
(0.2)
|
|
|
0.1
|
|
|
(0.9)
|
|
|
(0.4)
|
|
Interest Expense,
Net
|
32.4
|
|
|
34.2
|
|
|
128.8
|
|
|
140.6
|
|
Depreciation and
Amortization
|
120.8
|
|
|
112.0
|
|
|
481.4
|
|
|
457.4
|
|
EBITDA
|
250.5
|
|
|
205.6
|
|
|
854.2
|
|
|
952.0
|
|
Charges Associated
with Business Combinations, Shutdown and Other Special Charges and
Exit
Activities (a)
|
13.1
|
|
|
14.0
|
|
|
61.9
|
|
|
38.7
|
|
Pension Plan
Settlement Charge (b)
|
1.2
|
|
|
39.2
|
|
|
153.7
|
|
|
39.2
|
|
Adjusted
EBITDA
|
$
|
264.8
|
|
|
$
|
258.8
|
|
|
$
|
1,069.8
|
|
|
$
|
1,029.9
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (Adjusted EBITDA/Net Sales)
|
16.0
|
%
|
|
17.0
|
%
|
|
16.3
|
%
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
64.2
|
|
|
$
|
33.0
|
|
|
$
|
167.3
|
|
|
$
|
206.8
|
|
Charges Associated
with Business Combinations, Shutdown and Other Special Charges and
Exit
Activities(a)
|
13.1
|
|
|
14.0
|
|
|
61.9
|
|
|
38.7
|
|
Pension Plan
Settlement Charge (b)
|
1.2
|
|
|
39.2
|
|
|
153.7
|
|
|
39.2
|
|
Accelerated
Depreciation Related to Exit Activities
|
5.3
|
|
|
4.7
|
|
|
26.0
|
|
|
4.7
|
|
Tax Impact of
Business Combinations, Shutdown and Other Special Charges, Exit
Activities,
Pension Plan Settlement, and Accelerated Depreciation
|
(4.4)
|
|
|
(11.4)
|
|
|
(48.3)
|
|
|
(16.2)
|
|
Noncontrolling
Interest, Net of Tax
|
(2.9)
|
|
|
(12.5)
|
|
|
(48.6)
|
|
|
(17.5)
|
|
Adjusted Net Income
Attributable to Graphic Packaging Holding Company
|
$
|
76.5
|
|
|
$
|
67.0
|
|
|
$
|
312.0
|
|
|
$
|
255.7
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share - Basic
|
$
|
0.28
|
|
|
$
|
0.23
|
|
|
$
|
1.12
|
|
|
$
|
0.87
|
|
Adjusted Earnings Per
Share - Diluted
|
$
|
0.28
|
|
|
$
|
0.23
|
|
|
$
|
1.12
|
|
|
$
|
0.87
|
|
|
|
(a)
|
For the three months
ended December 31, 2019, $0.4 million is recorded in costs of sales
for inventory valuation adjustments related to business
combinations. For the twelve months ended December 31, 2020 and
December 31, 2019, $0.6 million and $0.8 million, respectively, is
recorded in costs of sales for inventory valuation adjustments
related to business combinations.
|
(b)
|
For the three months
and twelve months ended December 31, 2019, $39.2 million is
recorded in nonoperating pension and postretirement benefit
expense. For the three months and twelve months ended
December 31, 2020, $1.2 million and $153.7 million respectively is
recorded in nonoperating pension and postretirement benefit
expense.
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
Reconciliation of
Non-GAAP Financial Measures
|
(Continued)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In
millions
|
2020
|
|
2019
|
|
2018
|
Net Income
|
$
|
167.3
|
|
|
$
|
206.8
|
|
|
$
|
221.1
|
|
Add
(Subtract):
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interest
|
36.0
|
|
|
71.3
|
|
|
72.9
|
|
Income Tax
Expense
|
41.6
|
|
|
76.3
|
|
|
54.7
|
|
Equity Income of
Unconsolidated Entity
|
(0.9)
|
|
|
(0.4)
|
|
|
(1.2)
|
|
Interest Expense,
Net
|
128.8
|
|
|
140.6
|
|
|
123.7
|
|
Depreciation and
Amortization
|
481.4
|
|
|
457.4
|
|
|
436.9
|
|
EBITDA
|
854.2
|
|
|
952.0
|
|
|
908.1
|
|
Charges Associated
with Business Combinations and Shutdown, Other
Special Charges and Exit Activities
|
61.9
|
|
|
38.7
|
|
|
70.0
|
|
Pension Plan
Settlement Charge
|
153.7
|
|
|
39.2
|
|
|
—
|
|
Extended Augusta Mill
Outage
|
—
|
|
|
—
|
|
|
29.6
|
|
Gain on Sale of
Assets, Net
|
—
|
|
|
—
|
|
|
(38.6)
|
|
Loss on Modification
or Extinguishment of Debt
|
—
|
|
|
—
|
|
|
1.9
|
|
Adjusted
EBITDA
|
1,069.8
|
|
|
1,029.9
|
|
|
971.0
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
Calculation of Net
Debt:
|
2020
|
|
2019
|
|
2018
|
Short-Term Debt and
Current Portion of Long-Term Debt
|
$
|
497.2
|
|
|
$
|
50.4
|
|
|
$
|
52.0
|
|
Long-Term
Debt(a)
|
3,169.4
|
|
|
2,822.4
|
|
|
2,915.7
|
|
Less:
|
|
|
|
|
|
Cash and Cash
Equivalents
|
(179.0)
|
|
|
(152.9)
|
|
|
(70.5)
|
|
Total Net
Debt
|
$
|
3,487.6
|
|
|
$
|
2,719.9
|
|
|
$
|
2,897.2
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Total Net Debt/Adjusted EBITDA)
|
3.26
|
|
|
2.64
|
|
|
2.98
|
|
|
(a)
Excludes unamortized deferred debt issue costs.
|
|
Twelve Months
Ended
|
|
December
31,
|
In
millions
|
2020
|
|
2019
|
Net Cash Provided by
Operating Activities
|
$
|
845.6
|
|
|
$
|
665.8
|
|
Net Cash Receipts
from Receivables Sold included in Investing Activities
|
106.1
|
|
|
187.7
|
|
Cash Payments
Associated with Business Combinations, Shutdown and Other Special
Charges and
Exit Activities
|
39.1
|
|
|
26.9
|
|
Adjusted Net Cash
Provided by Operating Activities
|
$
|
990.8
|
|
|
$
|
880.4
|
|
Capital
Spending
|
(646.3)
|
|
|
(352.9)
|
|
Adjusted Cash
Flow
|
$
|
344.5
|
|
|
$
|
527.5
|
|
GRAPHIC PACKAGING
HOLDING COMPANY
|
Unaudited
Supplemental Data
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Tons Sold
(000's)
|
|
1,011.6
|
|
|
1,012.9
|
|
|
1,036.0
|
|
|
991.4
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Tons Sold
(000's)
|
|
943.4
|
|
|
965.9
|
|
|
992.9
|
|
|
940.7
|
|
|
|
|
|
|
|
|
|
|
|
The closing of the
White Pigeon, Michigan mill and the shutdown of the West Monroe
container board machine led to a decrease of tons sold
of 30,400 and 46,000 in the three months ended September 30, 2020
and December 31, 2020, respectively.
|
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SOURCE Graphic Packaging Holding Company