Bemis Company, Inc. (NYSE:BMS) today reported financial results
for its third quarter ended September 30, 2018. Refer to the
reconciliation of Non-GAAP measures detailed in the attached
schedule, including adjusted earnings per share, adjusted EBITDA,
and net debt.
SUMMARY OF THE QUARTER
Q3 Q3 YTD
($ in millions except per share
amounts)
2018 2017 change 2018
2017
change
Earnings Per Share $ 0.63 $ 0.61 3.3 % $ 1.66 $ 1.46 13.7 %
Adjusted Earnings Per Share $ 0.77 $ 0.70 10.0 % $ 2.08 $ 1.76 18.2
% U.S. Packaging Operating Profit $ 93.4 $ 99.6 $ (6.2 ) $
270.5 $ 263.2 $ 7.3 Latin America Packaging Operating Profit $ 8.0
$ 7.3 $ 0.7 $ 25.0 $ 23.8 $ 1.2 Rest of World Packaging Operating
Profit $ 22.2 $ 17.3 $ 4.9 $ 57.4 $ 45.7 $ 11.7
Refer to the reconciliation of Non-GAAP
measures detailed in the attached schedule, including adjusted
earnings per share, referenced in this release.
“We delivered strong adjusted earnings per share during the
third quarter. We continue to make progress through Agility to fix,
strengthen, and grow our business,” said William F. Austen, Bemis
Company’s President and Chief Executive Officer. “All of our
segments performed in-line with our expectations, overcoming
incremental headwinds from currency and freight costs. In our U.S.
business, strong operational performance within our factories
continued. In our Latin American business, our teams continued to
execute cost improvements in light of the challenging economic
environment in Brazil. In our Rest of World business, our teams
delivered the highest level of operating profit since the reporting
segment was created through strong operational performance and
organic sales growth of our healthcare packaging business.”
Austen concluded, “Through three quarters of 2018, we have
increased adjusted earnings per share by 18 percent over the prior
year and implemented numerous operational, commercial, and
administrative improvements through Agility. Our teams across the
globe are committed to improving our business for the
long-term.”
AGILITY PROGRESS
As part of the Company’s previously-announced improvement plan
called “Agility” to fix, strengthen, and grow its business, the fix
aspect of this plan includes a restructuring and cost savings
target of $65 million pre-tax by the end of 2019. Agility-related
savings were approximately $9 million during the third quarter of
2018, for a year-to-date total of $26 million, reflecting a solid
pace to meet the Company’s full year 2018 savings plan of
approximately $35 million. Through three quarters of 2018, the
strengthen and grow aspects of Agility are also on pace to meet the
Company’s internal targets for growth of short-run business.
PROPOSED COMBINATION WITH AMCOR
On August 6, 2018, Bemis announced a plan for an all-stock
combination with Amcor to create the global leader in consumer
packaging with the footprint, scale, talent, and capabilities to
better serve customers around the world, drive significant value
for shareholders, create enhanced opportunities for employees, and
deliver the most sustainable innovations for the environment.
Austen stated, “We believe combining these two organizations
will drive significant value for shareholders, employees, and
customers over the long-term. Bemis shareholders will have the
opportunity to benefit from the expected increased dividend, which
nearly doubles from Bemis’ current dividend, and the value creation
driven from not only the $180 million of cost synergies identified
as part of the transaction but also additional potential revenue
synergies.”
Austen continued, “We remain on track for the transaction to
close in the first quarter of 2019, after regulatory and
shareholder approvals. All internal workstreams supporting
regulatory filings and integration planning are on pace to our
expectations. Until the transaction closes, we will continue to
operate as an independent company and will remain focused on
serving our customers and delivering our operating plans.”
Austen concluded, “For Bemis, this is the next exciting chapter
in our evolution, and our employees will carry forward the Bemis
legacy as they showcase their talents, knowledge, and passion for
serving our customers and providing inspired packaging solutions as
part of the global leader in consumer packaging that is being
created through this transaction.”
During the third quarter of 2018, Bemis Company recorded $10
million of costs related to the planned transaction with Amcor,
which are excluded from the Company’s adjusted earnings per share
metric.
BUSINESS SEGMENT RESULTS
U.S. Packaging
U.S. Packaging net sales of $688.4 million for the third quarter
of 2018 represented an increase of 2.4 percent compared to the same
period of 2017. The increase in net sales was driven primarily by
higher selling prices partially offset by lower unit volumes of two
percent. Approximately half of the unit volume decline was driven
by the Company’s planned shutdown of infant care business at its
Shelbyville, Tennessee facility.
U.S. Packaging operating profit was $93.4 million in the third
quarter of 2018, or 13.6 percent of net sales, compared to $99.6
million, or 14.8 percent of net sales, in 2017. Prior year U.S.
Packaging operating profit included a $4 million benefit from an
accrual reversal for unearned customer incentives. Operating profit
in the third quarter of 2018 includes the benefits of cost savings
from the Company’s Agility plan and improved operations, offset by
freight, current-year customer incentives, and the impact of strong
results on employee pay-for-performance awards.
Latin America Packaging
Latin America Packaging net sales of $148.3 million for the
third quarter of 2018 represented a decrease of 19.3 percent
compared to the same period of 2017. Currency translation and the
impact of implementing high inflation accounting in the Company’s
business in Argentina decreased net sales by 23.7 percent. Organic
sales growth of 4.4 percent reflects improved sales price and mix
partially offset by decreased unit volumes of 15 percent driven
primarily by the planned decrease of some laundry detergent
packaging volume in Brazil that is converting to another
format.
Latin America Packaging operating profit increased to $8.0
million in the third quarter of 2018, or 5.4 percent of net sales,
compared to $7.3 million, or 4.0 percent of net sales, in 2017. The
net impact of currency translation decreased operating profit
during the third quarter by $1.7 million. Additionally, the
implementation of high inflation accounting in the Company’s
Argentina business negatively impacted operating profit by $1.4
million during the third quarter of 2018. The remaining $3.8
million increase in Latin America Packaging operating profit was
driven by variable and fixed cost savings actions implemented in
light of the challenging economic environment in Brazil and the
Company’s Agility plan, partially offset by the impact of
volume.
Rest of World Packaging
Rest of World Packaging net sales of $189.7 million for the
third quarter of 2018 represented an increase of 6.0 percent
compared to the same period of 2017. Currency translation decreased
net sales by 0.8 percent. The acquisition of Evadix increased net
sales by 1.2 percent. Organic sales growth of 5.6 percent reflects
increased unit volumes of approximately three percent and increased
sales price and mix.
Rest of World Packaging operating profit increased to $22.2
million in the third quarter of 2018, or 11.7 percent of net sales,
compared to $17.3 million, or 9.7 percent of net sales, in 2017.
The net impact of currency translation decreased operating profit
during the third quarter by $0.2 million. The increase in operating
profit in Rest of World Packaging was driven primarily by increased
sales volume and strong performance in healthcare packaging.
CASH FLOW AND CAPITAL STRUCTURE
Cash flow from operations for the three months ended
September 30, 2018 was $142.3 million, compared to $99.0
million in the prior year.
Total company net debt to adjusted EBITDA was 2.4 times at
September 30, 2018.
OUTLOOK
Management maintained the midpoint of $2.80 with its updated
full year 2018 adjusted diluted earnings per share guidance range
of $2.77 to $2.82, which compared to the previous range of $2.75 to
$2.85.
Austen stated, “We are maintaining the midpoint of our earnings
per share guidance range. This reflects our plan for strong
operating performance to continue to overcome headwinds from
currency and freight costs as well as the impact of not
repurchasing shares during the second half of 2018. We continue to
expect full year operating profit margins in both our Latin
American and healthcare packaging businesses to increase 100 basis
points as compared to last year.”
Austen further commented, “We continue to execute well on all
aspects of Agility. We are delivering cost savings to plan and are
strengthening and growing our business as we focus on driving our
Agile Lane initiative which aligns our people, processes, and
assets to excel at short-run business across our entire customer
base in the U.S.”
Management maintained its full year 2018 cash from operations
guidance in the range of $410 to $430 million. Expected
restructuring and other cash costs are included in management’s
guidance range for 2018 at approximately $60 million, which
includes 2018 cash costs related to the pending transaction with
Amcor of $12 million.
Management continues to expect capital expenditures in 2018 to
be between $150 and $160 million.
Management continues to expect an effective income tax rate for
2018 of approximately 23 percent, which includes the benefit of
U.S. tax reform.
PRESENTATION OF NON-GAAP INFORMATION
This press release refers to non-GAAP financial measures:
adjusted diluted earnings per share, organic sales growth or
decline, adjusted EBITDA and net debt to adjusted EBITDA, and
adjusted return on invested capital. These non-GAAP financial
measures adjust for factors that are unusual or unpredictable.
These measures exclude the impact of certain amounts related to the
effect of changes in currency exchange rates, acquisitions, and
restructuring, including employee-related costs, equipment
relocation costs, accelerated depreciation and the write-down of
equipment. These measures also exclude gains or losses on sales of
significant property and divestitures, certain litigation matters,
and certain acquisition-related expenses, including transaction
expenses, due diligence expenses, professional and legal fees,
purchase accounting adjustments for inventory and order backlog and
changes in the fair value of deferred acquisition payments. This
adjusted information should not be construed as an alternative to
results determined in accordance with accounting principles
generally accepted in the United States of America (GAAP).
Management of the Company uses the non-GAAP measures to evaluate
operating performance and believes that these non-GAAP measures are
useful to enable investors to perform comparisons of current and
historical performance of the Company. All historical non-GAAP
information is reconciled with reported GAAP results. Forward
looking non-GAAP measures contained in our 2018 outlook are
reconciled to GAAP measures as practically as possible. However, we
are not providing U.S. GAAP guidance or a reconciliation of full
year 2018 adjusted EPS to U.S. GAAP EPS because we are unable to
predict with reasonably certainty the ultimate outcome of certain
significant items without unreasonable effort. These items include,
but are not limited to, restructuring expenses, asset impairments,
possible gains or losses on the sale of businesses or other assets,
certain other gains or losses and the income tax effects of these
items and/or other income tax-related events. These items are
uncertain, depend on various factors, and could have a material
impact on U.S. GAAP EPS for the guidance period.
FORWARD-LOOKING STATEMENTS
This release contains certain estimates, predictions, and other
“forward-looking statements” (as defined in the Private Securities
Litigation Reform Act of 1995, and within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended). Forward-looking statements are generally identified with
the words “believe,” “expect,” “anticipate,” “intend,” “estimate,”
“target,” “may,” “will,” “plan,” “project,” “should,” “continue,”
or the negative thereof or other similar expressions, or discussion
of future goals or aspirations, which are predictions of or
indicate future events and trends and which do not relate to
historical matters. Such statements are based on information
available to management as of the time of such statements and
relate to, among other things, expectations of the business
environment in which we operate, projections of future performance
(financial and otherwise), including those of acquired companies,
perceived opportunities in the market and statements regarding our
strategy and vision. Forward-looking statements involve known and
unknown risks, uncertainties, and other factors, which may cause
actual results, performance, or achievements to differ materially
from anticipated future results, performance or achievements
expressed or implied by such forward-looking statements. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
Factors that could cause actual results to differ from those
expected include, but are not limited to:
- Our pending merger with Amcor,
including uncertainties as to the timing of completion, the risk
that the merger may not be completed in a timely manner or at all,
and the risk that our shareholders cannot be certain of the value
of the consideration they will receive;
- The ability of our foreign operations
to maintain working efficiencies, as well as properly adjust to
continuing changes in global politics, legislation, and economic
conditions;
- A failure to realize the full potential
of our restructuring activities;
- Changes in the competitive conditions
within our markets, as well as changes in the demand for our
goods;
- Changes in the value of our goodwill
and other intangible assets;
- Our ability to retain and build upon
the relationships and sales of our key customers;
- The potential loss of business or
increased costs due to customer or vendor consolidation;
- The costs, availability, and terms of
acquiring our raw materials (particularly for polymer resins and
adhesives), as well as our ability to pass any price changes on to
our customers;
- Changes in import and export regulation
that could subject us to liability or impair our ability to compete
in international markets;
- Variances in key exchange rates that
could affect the translation of the financial statements of our
foreign entities;
- Our ability to effectively implement
and update our global enterprise resource planning ("ERP")
systems;
- Our ability to realize the benefits of
our acquisitions and divestitures, and whether we are able to
properly integrate those businesses we have acquired;
- Fluctuations in interest rates and our
borrowing costs, along with other key financial variables;
- A potential failure in our information
technology infrastructure or applications and their ability to
protect our key functions from cyber-crime and other malicious
content;
- Changes in our credit rating;
- Unexpected outcomes in our current and
future administrative and litigation proceedings;
- Changes in governmental regulations,
particularly in the areas of environmental, health and safety
matters, fiscal incentives, and foreign investment;
- Our ability to effectively introduce
new products into the market and to protect or retain our
intellectual property rights;
- Changes in our ability to attract and
retain high performance employees; and
- Our ability to manage all costs and the
funded status associated with our pension plans.
These and other risks, uncertainties, and assumptions identified
from time to time in our filings with the Securities and Exchange
Commission, including without limitation, those described under
Item 1A "Risk Factors" of our Annual Report on Form 10-K and our
quarterly reports on Form 10-Q, could cause actual future results
to differ materially from those projected in the forward-looking
statements. In addition, actual future results could differ
materially from those projected in the forward-looking statements
as a result of changes in the assumptions used in making such
forward-looking statements.
LEGAL DISCLOSURES
No Offer or Solicitation
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities or
the solicitation of any vote or approval in any jurisdiction, nor
shall there be any sale, issuance or transfer of securities in any
jurisdiction in contravention of applicable law. No offer of
securities will be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act.
Important Additional Information Will Be Filed with the
SEC
In connection with the contemplated transactions, New Amcor
intends to file a registration statement on Form S-4 with the SEC
that will include a joint proxy statement of Bemis and prospectus
of New Amcor. The joint proxy statement/prospectus will also be
sent or given to Bemis shareholders and will contain important
information about the contemplated transactions. Shareholders are
urged to read the joint proxy statement/prospectus and other
relevant documents filed or to be filed with the SEC carefully when
they become available because they will contain important
information about Bemis, Amcor, New Amcor, the contemplated
transactions, and related matters. Investors and shareholders will
be able to obtain free copies of the joint proxy
statement/prospectus (when available) and other documents filed
with the SEC by Bemis, Amcor, and New Amcor through the SEC’s
website (www.sec.gov).
Participants in the Solicitation
Bemis, Amcor, New Amcor, and their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from Bemis shareholders in connection with
the contemplated transactions. Information about Bemis’ directors
and executive officers is set forth in its proxy statement for its
2018 Annual Meeting of Shareholders and its annual report on Form
10-K for the fiscal year ended December 31, 2017, which may be
obtained for free at the SEC’s website (www.sec.gov). Information
about Amcor’s directors and executive officers is set forth in its
Annual Report 2018, which may be obtained for free at ASX’s website
(www.asx.com.au). Additional information regarding the interests of
participants in the solicitation of proxies in connection with the
contemplated transactions will be included in the joint proxy
statement/prospectus that New Amcor intends to file with the
SEC.
INVESTOR CONFERENCE CALL
Bemis Company, Inc. will webcast an investor telephone
conference regarding its third quarter 2018 financial results this
morning at 10:00 a.m., Eastern Time today, October 25, 2018.
Individuals may listen to the call on the Internet at www.bemis.com
under “Investor Relations.” Listeners are urged to check the
website ahead of time to ensure their computers are configured for
the audio stream. Instructions for obtaining the required, free,
downloadable software are available in a pre-event system test on
the site.
ABOUT BEMIS COMPANY, INC.
Bemis Company, Inc. (“Bemis” or the “Company”) is a supplier of
flexible and rigid plastic packaging used by leading food, consumer
products, healthcare, and other companies worldwide. Founded in
1858, Bemis reported 2017 net sales of $4.0 billion. Bemis has a
strong technical base in polymer chemistry, film extrusion, coating
and laminating, printing, and converting. Headquartered in Neenah,
Wisconsin, Bemis employs approximately 16,000 individuals
worldwide. More information about Bemis is available at our
website, www.bemis.com.
BEMIS
COMPANY, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share
amounts)
(unaudited)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2018 2017 2018 2017 Net
sales $ 1,026.4 $ 1,035.1 $ 3,087.1 $ 3,042.6 Cost of products sold
(1) 821.4 827.1 2,482.4 2,450.2 Gross
profit 205.0 208.0 604.7 592.4 Operating expenses: Selling,
general and administrative expenses (1) 90.9 95.9 284.6 290.5
Research and development costs 9.3 10.0 28.7 33.6
Restructuring and other costs
16.1 12.9 50.5 41.1 Other operating income (4.4 ) (7.8 ) (11.4 )
(13.9 ) Operating income 93.1 97.0 252.3 241.1
Interest expense 18.9 16.7 56.5 48.7 Other non-operating income (1)
(0.5 ) (1.7 ) (2.1 ) (5.0 ) Income before income taxes 74.7
82.0 197.9 197.4 Provision for income taxes 17.2 26.4
46.1 62.7 Net income $ 57.5 $
55.6 $ 151.8 $ 134.7 Basic earnings per
share $ 0.63 $ 0.61 $ 1.66 $ 1.47
Diluted earnings per share $ 0.63 $ 0.61 $
1.66 $ 1.46 Cash dividends paid per share $
0.31 $ 0.30 $ 0.93 $ 0.90
Weighted average shares outstanding: Basic 91.0 90.9 91.0 91.8
Diluted 91.6 91.2 91.3 92.1 (1) Prior year information has
been recast to reflect the adoption of pension accounting changes
during the first quarter of 2018 and conform to current year
presentation.
BEMIS
COMPANY, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEET
(in millions)
(unaudited)
September 30,2018
December 31,2017
ASSETS
Cash and cash equivalents $ 62.3 $ 71.1 Trade receivables
483.1 448.7 Inventories 627.7 620.2 Prepaid expenses and other
current assets 86.1 97.1 Total current assets 1,259.2
1,237.1 Property and equipment, net 1,253.7
1,318.1 Goodwill 846.3 852.7 Other intangible
assets, net 125.5 142.3 Deferred charges and other assets 119.7
149.7 Total other long-term assets 1,091.5
1,144.7
TOTAL ASSETS $ 3,604.4 $
3,699.9
LIABILITIES
Current portion of long-term debt $ 1.7 $ 5.0 Short-term
borrowings 10.9 16.0 Accounts payable 513.4 477.2 Employee-related
liabilities 98.3 73.1 Accrued income and other taxes 29.6 30.5
Other current liabilities 51.6 64.3 Total current
liabilities 705.5 666.1 Long-term debt, less
current portion 1,431.4 1,542.4 Deferred taxes 161.3 153.5 Other
liabilities and deferred credits 118.9 136.7
TOTAL LIABILITIES 2,417.1 2,498.7
EQUITY
Common stock issued (129.3 and 129.1 shares, respectively)
12.9 12.9 Capital in excess of par value 599.3 590.4 Retained
earnings 2,391.1 2,324.8 Accumulated other comprehensive loss
(483.6 ) (394.5 ) Common stock held in treasury (38.3 shares at
cost) (1,332.4 ) (1,332.4 )
TOTAL EQUITY 1,187.3
1,201.2
TOTAL LIABILITIES AND EQUITY $
3,604.4 $ 3,699.9
BEMIS
COMPANY, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
Nine Months Ended September 30, 2018
2017
Cash flows from
operating activities
Net income $ 151.8 $ 134.7 Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation and
amortization 126.5 127.5 Share-based compensation 14.6 13.0
Deferred income taxes 8.8 5.4 Income of unconsolidated affiliated
company (1.9 ) (2.3 ) Cash dividends received from unconsolidated
affiliated company 2.7 — Net loss on disposal of property and
equipment 1.9 4.8 Changes in working capital, excluding effect of
currency (9.5 ) 8.2 Changes in other assets and liabilities 8.2
8.2 Net cash provided by operating activities
303.1 299.5
Cash flows from
investing activities
Additions to property and equipment (113.0 ) (143.0 ) Business
acquisitions and adjustments, net of cash acquired — (3.9 )
Proceeds from sale of property and equipment 1.8 6.5
Net cash used in investing activities (111.2 ) (140.4 )
Cash flows from
financing activities
Proceeds from issuance of long-term debt — 2.2 Repayment of
long-term debt (3.8 ) — Net repayment of commercial paper (99.5 )
1.0 Net repayment of short-term debt (4.3 ) (0.4 ) Cash dividends
paid to shareholders (85.6 ) (84.0 ) Common stock purchased for the
treasury — (103.8 ) Stock incentive programs and related tax
withholdings (5.7 ) (8.5 ) Net cash used in financing
activities (198.9 ) (193.5 ) Effect of exchange rates on
cash and cash equivalents (1.8 ) 4.9 Net decrease in
cash and cash equivalents (8.8 ) (29.5 ) Cash and cash
equivalents balance at beginning of year 71.1 74.2
Cash and cash equivalents balance at end of period $ 62.3
$ 44.7
BEMIS COMPANY,
INC. AND SUBSIDIARIES
SEGMENT SALES AND
PROFIT INFORMATION
(unaudited)
Three Months Ended September 30, Nine
Months Ended September 30, 2018 2017
2018 2017 Net sales U.S. Packaging (a) $ 688.4
$ 672.3 $ 2,038.1 $ 1,982.7 Latin America Packaging (b) 148.3 183.8
476.2 532.7 Rest of World Packaging (c) 189.7 179.0
572.8 527.2 Total net sales $ 1,026.4 $
1,035.1 $ 3,087.1 $ 3,042.6 Segment
operating profit U.S. Packaging (d) $ 93.4 $ 99.6 $ 270.5 $ 263.2
Latin America Packaging (e) 8.0 7.3 25.0 23.8 Rest of World
Packaging (f) 22.2 17.3 57.4 45.7 Restructuring and other
costs 16.1 12.9 50.5 41.1 General corporate expenses 14.4
14.3 50.1 50.5 Operating income 93.1
97.0 252.3 241.1 Interest expense 18.9 16.7 56.5 48.7 Other
non-operating income (0.5 ) (1.7 ) (2.1 ) (5.0 ) Income
before income taxes $ 74.7 $ 82.0 $ 197.9 $
197.4
Operating profit return on sales
U.S. Packaging (d / a) 13.6 % 14.8 % 13.3 % 13.3 % Latin America
Packaging (e / b) 5.4 % 4.0 % 5.2 % 4.5 %
Rest of World Packaging (f / c)
11.7 % 9.7 % 10.0 % 8.7 %
BEMIS COMPANY,
INC. AND SUBSIDIARIES
SEGMENT SALES AND
PROFIT INFORMATION
(unaudited)
Components of changes in net sales
Q3 2018% Change YoY
Q3 2018 YTD% Change YoY
U.S Packaging: Organic sales growth (decline) * 2.4 % 2.8 %
U.S. Packaging 2.4 % 2.8 %
Latin America
Packaging: Currency effect (23.7 )% (14.2 )% Organic sales
growth (decline) * 4.4 % 3.6 %
Latin America Packaging (19.3
)% (10.6 )%
Rest of World Packaging: Currency effect
(0.8 )% 4.1 % Acquisition effect 1.2 % 1.1 % Organic sales growth
(decline) * 5.6 % 3.4 %
Rest of World Packaging 6.0 % 8.6 %
Total Company: Currency effect (4.3 )% (1.7 )%
Acquisition effect 0.2 % 0.2 % Organic sales growth (decline) * 3.3
% 3.0 %
Total change in net sales (0.8 )% 1.5 %
*Organic sales growth (decline) = sum of price, mix, and volume
BEMIS COMPANY,
INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP EARNINGS PER SHARE AND NET DEBT
(in millions, except per share
amounts)
(unaudited)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2018 2017 2018 2017
Non-GAAP earnings per share Diluted earnings per share, as
reported $ 0.63 $ 0.61 $ 1.66 $ 1.46 Non-GAAP adjustments
per share, net of taxes: Restructuring and related costs (1) 0.05
0.09 0.33 0.30 Other costs (2) 0.09 — 0.09 —
Diluted earnings per share, as adjusted $ 0.77 $ 0.70
$ 2.08 $ 1.76 (1)
Restructuring and related costs include the 2016
restructuring plan focused on plant closures in Latin America and
the 2017 restructuring plan focused on aligning the Company's cost
structure to its environment. Restructuring related costs primarily
include professional fees for consultants. (2) Other costs include
costs related to pending transaction with Amcor.
September 30, 2018
December 31, 2017 Net Debt Current portion of
long-term debt $ 1.7 $ 5.0 Short-term borrowings 10.9 16.0
Long-term debt, less current portion 1,431.4 1,542.4
Total debt 1,444.0 1,563.4 Less cash and cash equivalents (62.3 )
(71.1 ) Net debt $ 1,381.7 $ 1,492.3
BEMIS COMPANY,
INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP RETURN ON INVESTED CAPITAL AND EBITDA
(in millions)
(unaudited)
Three Months Ended
12 months endedSeptember
30,2018
September 30,2018
June 30,2018
March 31,2018
December 31,2017
Net income (loss) $ 57.5 $ 46.7 $ 47.6
$ (40.7 ) $ 111.1 Income taxes 17.2 14.0 14.9 (104.0 ) (57.9
) Interest expense 18.9 18.7 18.9 17.1 73.6 Other non-operating
(income) expense(3) (0.5 ) (0.7 ) (0.9 ) 8.5 6.4
Earnings before interest and taxes (EBIT)(3) 93.1
78.7 80.5 (119.1 ) 133.2 Restructuring and other costs(3) 16.1 21.0
13.4 19.3 69.8 Goodwill impairment charge — — —
196.6 196.6
Adjusted EBIT(3)
(a) 109.2 99.7 93.9 96.8 399.6 Depreciation and amortization
40.8 42.5 43.2 42.3 168.8
Adjusted EBITDA(3) $ 150.0 $ 142.2 $
137.1 $ 139.1 $ 568.4
Average
Invested Capital(1) (b) $ 2,686.0
Assumed tax
rate(2) (c) 24.0 %
Adjusted ROIC (a * (1 - c)
/ b) 11.3 %
Three Months Ended
12 months endedSeptember
30,2017
September 30,2017
June 30,2017
March 31,2017
December 31,2016
Net income $ 55.6 $ 28.0 $ 51.1 $ 60.5 $ 195.2 Income
taxes 26.4 13.1 23.2 29.2 91.9 Interest expense 16.7 16.0 16.0 15.7
64.4 Other non-operating (income) expense(3) (1.7 ) (1.4 ) (1.9 )
1.3 (3.7 )
Earnings before interest and taxes
(EBIT)(3) 97.0 55.7 88.4 106.7 $ 347.8 Restructuring and
other costs 12.9 23.8 4.4 3.8 44.9
Adjusted EBIT(3) (a) 109.9 79.5 92.8
110.5 392.7 Depreciation and amortization 42.5 43.2
41.8 40.7 168.2
Adjusted
EBITDA(3) $ 152.4 $ 122.7 $ 134.6 $
151.2 $ 560.9
Average Invested
Capital(1) (b) $ 2,746.0
Assumed tax
rate(2) (c) 24.0 %
Adjusted ROIC (a * (1 - c)
/ b) 10.9 % (1)
Average invested capital includes all equity and debt amounts, less
cash, calculated on a five-quarter average. (2) The tax rate used
approximates the U.S. federal and state statutory rates. For
comparative purposes, a consistent tax rate has been used for all
periods presented. (3) Prior year information has been recast to
reflect the adoption of pension accounting changes and conform to
current year presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181025005255/en/
Bemis Company, Inc.Erin M. Winters, (920)
527-5288Director of Investor Relations
Bemis (NYSE:BMS)
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