Pactiv Evergreen Revises Guidance for the Full Fiscal Year 2021
September 08 2021 - 7:07AM
Pactiv Evergreen Inc. (NASDAQ: PTVE) (“Pactiv Evergreen” or the
“Company”), today provided an update to its previous financial
guidance. Pactiv Evergreen is revising the full fiscal year 2021
Adjusted EBITDA1 guidance to $550 million.
Although the Company is seeing continued underlying volume
recovery across all of our segments, profitability is expected to
be negatively impacted by a number of significant external
challenges.
First, the continued increase in raw materials costs,
particularly the cost of resins, which is now expected to remain at
elevated levels throughout 2021, as well as increased
transportation costs, has delayed our ability to recover these
costs into 2022.
Second, recent weather events including Tropical Storm Fred and
resulting floods have slowed the recovery of operations at our
mills. The severe flooding from Tropical Storm Fred also caused
damage to property and equipment at our mill in Canton, NC and
halted mill operations for several days in August.
Third, the continuing labor shortage is expected to impact
volumes by constraining the Company’s ability to increase
production.
“The Company remains focused on controlling what we can, which
includes providing exceptional service to our customers, driving
volume and optimal production, implementing pricing initiatives to
recover raw material costs, recruitment initiatives to improve
labor shortages, improving mill operations and exiting the coated
groundwood paper business,” said Mike King, Chief Executive
Officer. “All of these initiatives will support Pactiv Evergreen as
we return to the level of operations and results that will meet our
customers’ demand and exceed their expectations.”
Outlook The revised financial guidance is
preliminary and will be updated in the Company’s fiscal 2021 third
quarter results release.
Conference Call and Webcast PresentationThe
Company will host a conference call and webcast presentation to
discuss this press release and related materials on Wednesday,
September 8 at 8:00 a.m. Eastern Time. Investors interested in
participating in the live call may dial:
U.S.: 1-877-407-0789
International: 1-201-689-8562
Conference ID: 13722926
Participants may also access the live webcast and
supplemental presentation on the Pactiv Evergreen Investor
Relations website under “Events.”
Contact:Dhaval
Patel732.501.9657dhaval.patel@pactivevergreen.com
Media:Beth
Kelly412.303.4771beth.kelly@pactivevergreen.com
About Pactiv Evergreen Inc. Pactiv
Evergreen Inc. (NASDAQ: PTVE) is one of the largest manufacturers
of fresh food and beverage packaging in North America. With a team
of nearly 15,000 employees, the Company produces a broad range of
on-trend and feature-rich products that protect, package and
display food and beverages for today’s consumers. Its products,
many of which are made with recycled, recyclable or renewable
materials, are sold to a diversified mix of customers, including
restaurants, foodservice distributors, retailers, food and beverage
producers, packers and processors. Learn more
at www.pactivevergreen.com.
1 The Company uses the non-GAAP financial measure “Adjusted
EBITDA” in evaluating its past results and future prospects. The
Company defines Adjusted EBITDA as net income (loss) from
continuing operations calculated in accordance with GAAP plus the
sum of income tax expense (benefit), net interest expense,
depreciation and amortization and further adjusted to exclude
certain items of a significant or unusual nature, including but not
limited to foreign exchange gains or losses on cash, goodwill
impairment charges, related party management fees, unrealized gains
or losses on derivatives, gains or losses on the sale of businesses
and non-current assets, restructuring, asset impairment and other
related charges, operational process engineering-related
consultancy costs, non-cash pension income or expense, strategic
review and transaction-related costs and executive transition
charges. The Company presents Adjusted EBITDA because it is a key
measure used by its management team to evaluate its operating
performance, generate future operating plans and make strategic
decisions. In addition, the Company’s chief operating decision
maker uses Adjusted EBITDA of each reportable segment to evaluate
the operating performance of such segments. Accordingly, the
Company believes presenting this metric provides useful information
to investors and others in understanding and evaluating its
operating results in the same manner as the management team and
board of directors. Non-GAAP information should be considered as
supplemental in nature and is not meant to be considered in
isolation or as a substitute for the related financial information
prepared in accordance with GAAP. In addition, the Company’s
non-GAAP financial measure may not be the same as or comparable to
similar non-GAAP financial measures presented by other companies.
The Company cannot reconcile the expected Adjusted EBITDA to net
income without unreasonable effort because certain
items that impact net income and other reconciling metrics are out
of the Company’s control and/or cannot be reasonably predicted at
this time.
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