Berry Global Group, Inc. (NYSE:BERY) today reported results for
its fourth quarter and fiscal year 2017, referred to in the
following as the September 2017 quarter and fiscal year 2017.
- Net income for the September 2017
quarter was $110 million ($0.81 per diluted share) compared to $77
million ($0.61 per diluted share) in the prior year quarter.
Adjusted net income per diluted share in the September 2017 quarter
was 19 percent higher at $0.87 compared to $0.73 in the prior year
quarter.
- Net sales increased 16 percent over the
prior year quarter to $1.9 billion. Operating income for the
quarter increased by 32 percent to $199 million compared to $151
million in the prior year quarter. Operating EBITDA was $350
million (18.6 percent of net sales), an increase of 16 percent
compared to the September 2016 quarter.
- Fiscal year 2017 net sales increased 9
percent over the prior fiscal year to $7.1 billion compared to $6.5
billion. Operating income for fiscal year 2017 increased by 26
percent to $732 million compared to $581 million in the prior
fiscal year. Operating EBITDA was a fiscal year record at $1.33
billion (18.7 percent of net sales), an increase of 10 percent
compared to $1.21 billion (18.6 percent of net sales) in fiscal
year 2016.
- Cash flow from operations for fiscal
2017 was $975 million, and adjusted free cash flow for fiscal 2017
was a fiscal year record at $601 million.
- Expected fiscal year 2018 cash flow
from operations of $965 million and adjusted free cash flow of $610
million.
“Berry had a solid fourth quarter and full fiscal year as we
exceeded our guidance for adjusted free cash flow by $51 million.
We achieved fiscal year records for net sales, operating EBITDA and
adjusted free cash flow. During the year we met our top priority by
reducing our leverage ratio to below 4, ending the fiscal year at
3.8 times net debt to adjusted EBITDA, the lowest in the Company’s
history as a public company,” said Tom Salmon, CEO of Berry.
September 2017 Quarter
Results
Consolidated Overview September Quarterly
Period Ended (in millions of
dollars)
2017 2016
$ Change
% Change
Net sales
$ 1,881 $ 1,618 $ 263
16 % Operating income
199 151 48 32 %
The net sales increase of $263 million from the prior year
quarter is primarily attributed to acquisition net sales of $288
million, selling price increases of $9 million due to the pass
through of higher resin prices, and an $11 million positive impact
from foreign currency changes partially offset by a 2 percent base
volume decline. The base volume decline in the quarter is primarily
attributed to our decisions to rationalize certain lower margin
products that we acquired from AEP in order to maximize
earnings.
The operating income increase of $48 million from the prior year
quarter is primarily attributed to acquisition operating income of
$20 million, an $18 million improvement in our product mix and
price/cost spread, $6 million decrease in SG&A and operating
expenses, and a $4 million positive impact from currency
translation. These improvements were partially offset a negative $4
million impact from base volume declines.
Fiscal Year 2017 Results
Consolidated Overview Fiscal Year
(in millions of dollars)
2017
2016
$ Change
% Change
Net sales
$ 7,095 $ 6,489 $ 606
9 % Operating income
732 581 151 26 %
The net sales increase of $606 million is primarily attributed
to acquisition net sales of $788 million and selling price
increases of $60 million due to the pass through of higher resin
prices, partially offset by a negative $136 million impact from a 2
percent base volume decline, $98 million from extra days in fiscal
2016, and a slightly negative impact from foreign currency
changes.
The operating income increase of $151 million is primarily
attributed to acquisition operating income of $62 million, a $36
million decrease in Avintiv integration and restructuring costs, a
$35 million decrease in selling, general and administrative expense
related to synergies and cost reductions, a $24 million improvement
in our product mix and price/cost spread, a $16 million decrease in
depreciation and amortization, and a slight improvement in
productivity in manufacturing. These improvements were partially
offset by a $20 million impact from the base volume decline and $10
million from extra days in fiscal 2016.
The performance of the Company’s divisions compared with the
prior fiscal year is as follows:
Engineered Materials Fiscal Year
(in millions of dollars)
2017
2016
$ Change
% Change Net sales
$ 2,375 $
1,627 $ 748 46 % Operating income
316 183 134
74 %
Engineered Materials’ net sales increased by $748 million
primarily attributed to acquisition net sales of $788 million, and
selling price increases of $67 million due to the pass through of
higher resin prices, partially offset by a negative $79 million
impact from a 3 percent base volume decline, and $30 million from
extra days in fiscal 2016. The base volume decline is primarily
attributed to our decisions to rationalize certain lower margin
products that we acquired from AEP in order to maximize
earnings.
The operating income increase of $134 million is primarily
attributed to acquisition operating income of $62 million, a $71
million improvement in our product mix and price/cost spread, a $13
million decrease in selling, general and administrative expenses, a
$3 million decrease in business integration and restructuring
costs, and a slight improvement in productivity in manufacturing,
partially offset by a negative $8 million impact from lower base
volumes, a $6 million increase in depreciation and amortization
expense, and $4 million from extra days in fiscal 2016.
Health, Hygiene, and Specialties Fiscal
Year (in millions of dollars)
2017 2016
$ Change
% Change
Net sales
$ 2,369 $ 2,400 $ (31 )
(1 )% Operating income
216 195 21 11 %
Health, Hygiene, and Specialties’ net sales decreased by
$31 million primarily attributed to extra days in fiscal 2016 of
$25 million, selling price decreases of $23 million, and a slightly
unfavorable impact from foreign currency, partially offset by a $26
million positive impact from base volume improvements.
The operating income increase of $21 million is primarily
attributed to a $27 million decrease in business integration and
restructuring costs associated with the Avintiv acquisition, a $13
million improvement in productivity in manufacturing, a $12 million
decrease in depreciation and amortization expense, a $5 million
impact from base volumes, and a $5 million decrease in selling,
general and administrative expenses. These improvements were
partially offset by a $45 million decrease in our product mix and
price/cost spread primarily related to inflation and market
pressures within our South American business.
Consumer Packaging Fiscal Year
(in millions of dollars)
2017
2016
$ Change
% Change
Net sales
$ 2,351 $ 2,462 $ (111 )
(5 )% Operating income
200 203 (3 ) (1 )%
Consumer Packaging’s net sales decreased by $111 million
primarily attributed to an $83 million negative impact from base
volumes and $43 million from extra days in fiscal 2016, partially
offset by selling price increases of $15 million due to the pass
through of higher resin prices. The volume decline was primarily
attributed to general market softness and our continued focus on
volume, price, and mix in order to optimize earnings.
The operating income decrease of $3 million is primarily
attributed to a base volume decline of $17 million, an $11 million
negative impact from productivity in manufacturing, $5 million from
extra days in fiscal 2016, and a slight decrease in our product mix
and price/cost spread, partially offset by a $17 million decrease
in selling, general and administrative expenses related to
synergies from cost reductions, a $10 million decrease in
depreciation and amortization expense, and a $5 million decrease in
business integration and restructuring expense.
Cash Flow and Capital
Structure
Our cash flow from operating activities was $395 million for the
September 2017 quarter and $975 million for fiscal year 2017. The
Company’s adjusted free cash flow for the September 2017 quarter
was $278 million, a 20 percent increase compared to the prior year
quarter of $231 million. The Company’s adjusted free cash flow for
fiscal year 2017 was a fiscal year record of $601 million, a 16
percent increase, compared to $517 million in fiscal year 2016.
Our total debt less cash and cash equivalents at the end of the
September 2017 quarter was $5,335 million. Adjusted EBITDA for the
four quarters ended September 30, 2017 was $1,405 million.
Recent Development
Earlier today, November 16, 2017, the Company announced we had
entered into a definitive agreement to acquire the Clopay Plastic
Products Company, Inc.(“Clopay”), a subsidiary of Griffon
Corporation for $475 million in cash, which is preliminary and
subject to adjustment. Clopay, is a global supplier of printed
breathable films as wells as a key innovator in the customer
development of elastic films and laminates with product offerings
uniquely designed for applications used in a number of markets
including: hygiene, healthcare, building and construction and
industrial protective apparel. Clopay has nearly 1,500 employees
with an expanded footprint serving markets across the globe
including 7 manufacturing facilities located in the United States,
Germany, Brazil, and China. Clopay’s most recent fiscal year ended
in September 2017 delivered $461 million in net sales and $53
million in operating EBITDA. The completion of the Clopay
acquisition is subject to customary closing conditions and the
terms and conditions of the purchase agreement. Further, we
estimate we will achieve annual cost synergies of approximately $20
million, which should be realized over the next 2 years. The
purchase price, including our expected cost synergies along with
the tax basis step-up value, represents an adjusted EBITDA multiple
of below 6 times.
Outlook
We anticipate our fiscal year 2018 cash flow from operations and
adjusted free cash flow to be $965 million and $610 million,
respectively. Our estimate assumes flat working capital and
volumes. Additionally, our capital spending and cash interest costs
are forecasted to be $320 million and $250 million, respectively.
Within our adjusted free cash flow guidance, we are also assuming
cash taxes to be $210 million, including a $35 million payment in
the first quarter under the Company’s tax receivable agreement,
along with other cash uses of $40 million related to items such as
acquisition integration expenses and costs to achieve synergies.
These estimates and assumptions do not include our most recent
definitive agreement to acquire Clopay.
Investor Conference Call
The Company will host a conference call today, November 16,
2017, at 10 a.m. Eastern Time to discuss its fourth quarter and
fiscal year 2017 results. The telephone number to access the
conference call is (800) 305-1078 (domestic), or (703) 639-1173
(international), conference ID 98750799. We expect the call to last
approximately one hour. Interested parties are invited to listen to
a live webcast and view the accompanying
slides by visiting the Company’s Investor page at
www.berryglobal.com. A replay of the conference call can also be
accessed on the Investor page of the website beginning November 16,
2017, at 1 p.m. Eastern Time, to December 4, 2017, by calling (855)
859-2056 (domestic), or (404) 537-3406 (international), access code
98750799.
About Berry
Berry is committed to its mission of ‘Always Advancing to
Protect What’s Important,’ and proudly partners with its customers
to provide them with value-added customized protection solutions.
The Company’s products include engineered materials, non-woven
specialty materials, and consumer packaging. Berry’s world
headquarters is located in Evansville, Indiana. With net sales of
$7.1 billion in fiscal 2017, Berry, a Fortune 500 company, is
listed on the New York Stock Exchange under the ticker symbol BERY.
For additional information, visit Berry’s website at
www.berryglobal.com.
Non-GAAP Financial
Measures
This press release includes non-GAAP financial measures such as
operating EBITDA, adjusted EBITDA, adjusted net income, adjusted
free cash flow, and cash interest expense. A reconciliation of
these non-GAAP financial measures to comparable measures determined
in accordance with accounting principles generally accepted in the
United States of America (GAAP) is set forth at the end of this
press release. Our “leverage ratio” means the ratio of (i) our
total debt minus our cash and cash equivalents to (ii) our Adjusted
EBITDA.
Forward Looking
Statements
Statements in this release that are not historical, including
statements relating to the expected future performance of the
Company, are considered “forward looking” and are presented
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. You can identify forward-looking
statements because they contain words such as “believes,”
“expects,” “may,” “will,” “should,” “would,” “could,” “seeks,”
“approximately,” “intends,” “plans,” “estimates,” “anticipates”
“outlook,” or “looking forward,” or similar expressions that relate
to our strategy, plans or intentions. All statements we make
relating to our estimated and projected earnings, margins, costs,
expenditures, cash flows, growth rates and financial results or to
our expectations regarding future industry trends are
forward-looking statements. In addition, we, through our senior
management team, from time to time make forward-looking public
statements concerning our expected future operations and
performance and other developments. These forward-looking
statements are subject to risks and uncertainties that may change
at any time, and, therefore, our actual results may differ
materially from those that we expected.
Important factors that could cause actual results to differ
materially from our expectations, which we refer to as cautionary
statements, are disclosed under “Risk Factors” and elsewhere in our
Annual Report on Form 10-K and subsequent filings with the
Securities and Exchange Commission, including, without limitation,
in conjunction with the forward-looking statements included in this
release. All forward-looking information and subsequent written and
oral forward-looking statements attributable to us, or to persons
acting on our behalf, are expressly qualified in their entirety by
the cautionary statements. Some of the factors that we believe
could affect our results include: (1) risks associated with our
substantial indebtedness and debt service; (2) changes in prices
and availability of resin and other raw materials and our ability
to pass on changes in raw material prices on a timely basis; (3)
the impact of potential changes in interest rates: (4) performance
of our business and future operating results; (5) risks related to
our acquisition strategy and integration of acquired businesses;
(6) reliance on unpatented know-how and trade secrets; (7)
increases in the cost of compliance with laws and regulations,
including environmental, safety, and production and product laws
and regulations; (8) risks related to disruptions in the overall
economy and the financial markets may adversely impact our
business; (9) catastrophic loss of one of our key manufacturing
facilities, natural disasters, and other unplanned business
interruptions; (10) risks of competition, including foreign
competition, in our existing and future markets;(11) general
business and economic conditions, particularly an economic
downturn; (12) potential failure to realize the intended benefits
from recent acquisitions( including the Clopay acquisition),
including, without limitation, the inability to realize the
anticipated cost synergies in the anticipated amounts or within the
contemplated timeframes or cost expectations, the inability to
realize the anticipated revenues, expenses, earnings and other
financial results, and growth and expansion of the company’s
operations, and the anticipated tax treatment; (13) risks related
to international business, including foreign currency exchange rate
risk and the risks of compliance with applicable export controls,
sanctions, anti-corruption laws and regulations, (14) the risk that
the conditions to closing of the Clopay acquisition may not be
satisfied; and (14) the other factors discussed in the under the
heading “Risk Factors” in our Annual Report on Form 10-K and
subsequent filings with the Securities and Exchange Commission. We
caution you that the foregoing list of important factors may not
contain all of the material factors that are important to you.
Accordingly, readers should not place undue reliance on those
statements. All forward-looking statements are based upon
information available to us on the date of this release. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
Berry Global Group, Inc. Consolidated Statements
of Income
(Unaudited)
(in millions of dollars, except per share
data amounts)
Quarterly Period Ended Fiscal Year
Ended
September 30,2017
October 1,2016
September 30,2017
October 1,2016
Net sales
$ 1,881 $ 1,618
$
7,095 $ 6,489 Costs and expenses: Cost of goods sold
1,514 1,317
5,691 5,202 Selling, general and
administrative
121 110
494 531 Amortization of
intangibles
41 37
154 143 Restructuring and
impairment charges
6 3
24 32 Operating income
199 151
732 581 Other (income) expense, net
(4
) (1 )
14 (18 ) Interest expense, net
66 69
269 291
Income before income taxes
137 83
449 308
Income tax expense
27 6
109 72 Consolidated net income
$
110 $ 77
$ 340 $ 236
Net income per share: Basic
$ 0.84 $ 0.63
$ 2.66 $ 1.95 Diluted
0.81 0.61
2.56
1.89 Outstanding weighted-average shares: (in millions)
Basic
130.6 121.7
127.6 120.8 Diluted
135.7
127.1
132.6 125.0
Berry Global Group,
Inc. Consolidated Statements of Comprehensive Income
(Unaudited)
(in millions of dollars)
Quarterly Period Ended Fiscal Year
Ended
September 30,2017
October 1,2016
September 30,2017
October 1,2016
Consolidated net income
$ 110 $ 77
$
340 $ 236 Currency translation
30 (40 )
34 (1
) Defined benefit pension and retiree health benefit plans
25 (23 )
38 (23 ) Interest rate hedges
5 6
28 (14 ) Provision for income taxes related to other
comprehensive income items
(12 ) 1
(20 ) 9 Other
comprehensive income, net of tax
48 (56
)
80 (29 ) Comprehensive income
$ 158 $ 21
$ 420 $
207
Berry Global Group, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions of dollars)
September 30,2017
October 1,2016
Assets: Cash and cash equivalents
$ 306 $ 323
Accounts receivable, net
847 704 Inventories
762 660
Other current assets
89 105 Property, plant, and equipment,
net
2,366 2,224 Goodwill, intangible assets, and other
long-term assets
4,106 3,637 Total assets
$ 8,476 $ 7,653
Liabilities and
stockholders' equity: Current liabilities, excluding debt
$ 1,101 $ 988 Current and long-term debt
5,641
5,755 Other long-term liabilities
719 689 Stockholders’
equity
1,015 221 Total liabilities and
stockholders' equity
$ 8,476 $ 7,653
Current and Long-Term Debt
September 30,2017
October 1,2016
(in millions of dollars) Revolving line of credit
$ —
$ — Term loans
3,957 4,060 5.5% Second priority notes
500 500 6.0% Second priority notes
400 400 5.125%
Second priority notes
700 700 Debt discounts and deferred
fees
(48 ) (58 ) Capital leases and other
132 153 Total debt
$
5,641 $ 5,755
Berry Global
Group, Inc. Condensed Consolidated Statements of Cash
Flows
(Unaudited)
(in millions of dollars)
Fiscal Year Ended
September 30,2017
October 1,2016
Cash flows from operating activities: Consolidated
net income
$ 340 $ 236 Depreciation
367 382
Amortization of intangibles
154 143 Other non-cash items
59 51 Working capital
55 45
Net cash from operating activities
975 857
Cash flows from investing activities: Additions to property,
plant, and equipment
(269 ) (288 ) Proceeds from sale
of assets
6 5 Other investing activities, net
4 (13 )
Acquisitions of businesses, net of cash acquired
(515
) (2,283 ) Net cash from investing activities
(774 ) (2,579 )
Cash flows from financing
activities: Proceeds from long-term borrowings
495 2,490
Repayment of long-term borrowings
(636 ) (524 )
Proceeds from issuance of common stock
31 26 Debt financing
costs
(5 ) (40 ) Payment of tax receivable agreement
(111 ) (57 ) Purchase of non-controlling interest
— (78 ) Net cash from financing
activities
(226 ) 1,817 Effect
of exchange rate changes on cash
8 — Net change in cash and
cash equivalents
(17 ) 95 Cash and cash equivalents
at beginning of period
323 228
Cash and cash equivalents at end of period
$ 306
$ 323
Berry Global Group, Inc.
Condensed Consolidated Financial
Statements
Segment Information
(Unaudited)
(in millions of dollars)
Quarterly Period Ended September 30, 2017
ConsumerPackaging
Health, Hygiene&
Specialties
EngineeredMaterials
Total Net sales
$ 599 $
596 $ 686 $ 1,881
Operating income
$ 50 $ 52 $
97 $ 199 Depreciation and amortization
57 48 33 138 Restructuring and
impairment charges
2 3 1 6 Other
non-cash charges (1)
2 2 2 6 Business
optimization costs (2)
— 1
— 1 Operating EBITDA
$ 111
$ 106 $ 133 $ 350
Quarterly Period Ended October 1, 2016
ConsumerPackaging
Health, Hygiene& Specialties
EngineeredMaterials
Total Net sales $ 617 $ 593 $ 408 $ 1,618 Operating income $
47 $ 55 $ 49 $ 151 Depreciation and amortization 61 56 18 135
Restructuring and impairment charges 2 — 1 3 Other non-cash charges
(1) 2 2 2 6 Business optimization costs (2) 1 4
1 6 Operating EBITDA $ 113 $ 117 $ 71 $ 301
(1) Other non-cash charges in the September 2017 quarter
primarily includes $4 million of stock compensation expense. Other
non-cash charges in the September 2016 quarter primarily includes
$3 million of stock compensation expense along with other non-cash
charges. (2) Includes integration expenses and other business
optimization costs.
Berry Global Group, Inc.
Condensed Consolidated Financial Statements Segment
Information
(Unaudited)
(in millions of dollars)
Fiscal Year Ended September 30,
2017
ConsumerPackaging
Health, Hygiene&
Specialties
EngineeredMaterials
Total Net sales
$ 2,351 $
2,369 $ 2,375 $ 7,095
Operating income
$ 200 $ 216 $
316 $ 732 Depreciation and amortization
231 184 106 521 Restructuring and
impairment charges
8 11 5 24 Other
non-cash charges (1)
10 12 12 34
Business optimization costs (2)
— 11
5 16 Operating EBITDA
$
449 $ 434 $ 444 $
1,327
Fiscal Year Ended October 1, 2016
ConsumerPackaging
Health, Hygiene& Specialties
EngineeredMaterials
Total Net sales $ 2,462 $ 2,400 $ 1,627 $ 6,489 Operating
income $ 203 $ 195 $ 183 $ 581 Depreciation and amortization 244
199 82 525 Restructuring and impairment charges 9 20 3 32 Other
non-cash charges (1) 11 18 12 41 Business optimization costs (2)
3 25 3 31 Operating EBITDA $ 470 $ 457
$ 283 $ 1,210 (1) Other non-cash charges for the
fiscal year ended September 30, 2017 primarily include $20 million
of stock compensation expense, $5 million step up of inventory to
fair value related to the AEP acquisition, along with other
non-cash charges. Other non-cash charges for the fiscal year ended
October 1, 2016 primarily includes $20 million of stock
compensation expense, $7 million step-up of inventory to fair value
related to the Avintiv acquisition and other non-cash charges. (2)
Includes integration expenses and other business optimization
costs.
Berry Global Group, Inc.
Reconciliation Schedules
(Unaudited)
(in millions of dollars, except per share
data)
Quarterly Period Ended Fiscal Year
Ended
September 30,2017
October 1,2016
September 30,2017
October 1,2016
Consolidated net income $ 110 $ 77
$ 340 $ 236 Add: other expense (income), net
(4 ) (1 )
14 (18 ) Add: interest expense, net
66 69
269 291 Add: income tax expense
27 6
109
72
Operating income $ 199 $ 151
$ 732 $ 581 Add: non-cash amortization from
2006 private sale
8 8
32 32 Add: restructuring and
impairment
6 3
24 32 Add: other non-cash charges (1)
6 6
34 41 Add: business optimization and other
expenses (2)
1 6
16 31
Adjusted operating
income (9)
$ 220 $ 174
$ 838 $ 717
Add: depreciation
97 98
367 382 Add:
amortization of intangibles (3)
33 29
122 111
Operating EBITDA (9)
$ 350 $ 301
$ 1,327 $ 1,210 Add: acquisitions (4)
35 — Add: unrealized cost savings (5)
43
10
Adjusted EBITDA (9)
$
1,405 $ 1,220
Cash flow from operating activities
$
395
$
290
$
975
$
857
Net additions to property, plant, and equipment
(66 )
(59 )
(263 ) (283 ) Payment of tax receivable
agreement
(51 ) —
(111 ) (57 )
Adjusted free cash
flow (9)
$ 278 $ 231
$
601 $ 517
Net income per diluted share
$
0.81
$
0.61
$
2.56
$
1.89
Other expense (income), net
(0.03 ) (0.01 )
0.11 (0.15 ) Non-cash amortization from 2006 private sale
0.06 0.06
0.24 0.26 Restructuring and impairment
0.04 0.02
0.18 0.26 Other non-cash charges (6)
0.01 0.05
0.10 0.32 Business optimization costs (2)
0.01 0.05
0.12 0.25 Income tax impact on items above
(7)
(0.03 ) (0.05 )
(0.24
) (0.30 )
Adjusted net income per diluted
share (9)
$ 0.87 $ 0.73
$
3.07 $ 2.53
EstimatedFiscal 2018
Cash flow from operating activities
$
965
Additions to property, plant, and
equipment
(320
)
Tax receivable agreement payment (8)
(35
)
Adjusted free cash flow (9)
$
610
Interest expense
255
Additions to property, plant, and
equipment
(5
)
Cash interest expense (9)
$
250
Clopay Reconciliation Schedule
(Unaudited)
Fiscal Year 2017 Segment operating income
$ 25 Depreciation and amortization
28
Segment operating EBITDA
53 Berry’s expected
annual cost synergies
20 Adjusted EBITDA
$ 73 (1) Other non-cash charges
in the September 2017 quarter primarily include $4 million of stock
compensation expense and other non-cash charges. The September 2016
quarter primarily includes $3 million of stock compensation expense
and other non-cash charges. For the fiscal year ended September
2017 other non-cash charges primarily include $20 million of stock
compensation expense, $5 million step-up of inventory to fair value
related to the AEP Industries Inc. acquisition and other non-cash
charges. Other non-cash charges for the fiscal year ended October
1, 2016 primarily includes $20 million of stock compensation
expense, $7 million step-up of inventory to fair value related to
the Avintiv acquisition and other non-cash charges. (2) Includes
integration expenses and other business optimization costs. (3)
Amortization excludes non-cash amortization from the 2006 private
sale of $8 million for both the September 30, 2017 and October 1,
2016 quarters and $32 million for the both the four quarters ended
September 30, 2017 and October 1, 2016. (4) Represents Operating
EBITDA for the AEP acquisition for the period of October 2016 to
January 19, 2017 and the Adchem acquisition for the period of
October 2016 to June 2017. (5) Primarily represents unrealized cost
savings related to acquisitions. (6) Other non-cash charges
excludes $4 million and $20 million of stock compensation expense
for the quarter ended September 30, 2017 and fiscal year end 2017,
respectively. Prior year quarter and fiscal year impact on adjusted
net income per share would be $0.02 and $0.11, respectively. (7)
Income tax effects on adjusted net income were calculated using 32%
for both the September 2017 and 2016 quarters and fiscal years. The
rates used for each represents the Company’s expected effective tax
rate for each respective period. (8) Includes $35 million tax
receivable agreement payment to be made in our first fiscal quarter
in 2018. (9) Supplemental financial measures that are not required
by, or presented in accordance with, accounting principles
generally accepted in the United States (“GAAP”). These non-GAAP
financial measures should not be considered as alternatives to
operating or net income or cash flows from operating activities, in
each case determined in accordance with GAAP. These non-GAAP
financial measures may be calculated differently by other
companies, including other companies in our industry, limiting
their usefulness as comparative measures. Our projected
adjusted free cash flow for fiscal 2018 assumes $965 million of
cash flow from operations less $320 million of net additions to
property, plant, and equipment and $35 million of payments under
our tax receivable agreement. We define “adjusted free cash flow”
as cash flow from operating activities less additions to property,
plant, and equipment and payments under the tax receivable
agreement. We believe adjusted free cash flow is useful to an
investor in evaluating our liquidity because adjusted free cash
flow and similar measures are widely used by investors, securities
analysts, and other interested parties in our industry to measure a
company’s liquidity. We also believe adjusted cash flow is useful
to an investor in evaluating our liquidity as it can assist in
assessing a company’s ability to fund its growth through its
generation of cash. We believe cash interest expense is useful to
investors by providing information regarding interest expense
without regard to non-cash interest expense recognition which may
vary based on financing structure and accounting methods.
Adjusted EBITDA is used by our lenders for debt covenant compliance
purposes. We also use Adjusted EBITDA and Operating EBITDA among
other measures to evaluate management performance and in
determining performance-based compensation. Adjusted EBITDA and
Operating EBITDA and similar measures are widely used by investors,
securities analysts, and other interested parties in our industry
to measure a company’s performance. We also believe EBITDA and
adjusted net income are useful to an investor in evaluating our
performance without regard to revenue and expense recognition,
which can vary depending upon accounting methods. The Clopay
reconciliation schedule for segment operating EBITDA, is not a
measure determined in accordance with accounting principles
generally accepted in the United States of America (GAAP). For
further information regarding Clopay’s results, including a
reconciliation of non-GAAP financial measures to comparable GAAP
measures, see the earnings release of Griffin Corporation issued
earlier today. As used herein, Clopay’s operating EBITDA refers to
the same measure defined in Griffin Corporation’s earnings release
as Clopay’s “Segment operating EBITDA.” Non-GAAP measures should be
viewed as supplements to, rather than substitutes for comparable
measures under GAAP.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171116005316/en/
Berry Global Group, Inc.Dustin Stilwell,
+1-812-306-2964ir@berryglobal.com
Berry Global (NYSE:BERY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Berry Global (NYSE:BERY)
Historical Stock Chart
From Sep 2023 to Sep 2024