Pactiv Evergreen Inc. (“Pactiv Evergreen” or the “Company”) today
reported results for the first quarter of 2022.
Michael King, President and Chief Executive
Officer of Pactiv Evergreen, said, “Following a strong finish to
2021, we had a solid start to 2022 with the first quarter of 2022
achieving 28% revenue growth in the quarter. This included a 26%
improvement in price/mix in the quarter due to contractual cost
pass-through price increases and pricing actions, which were
partially offset by inflationary increases in materials,
manufacturing and logistics costs. As expected, we faced headwinds
including volatility in raw material markets as well as pockets of
labor constraints. Our volumes were down 5% in the quarter
primarily due to labor challenges and the previously announced exit
from our coated groundwood business. Looking ahead, labor
challenges are expected to continue to subside, and we are making
good progress on improving our mill operations and managing our
inventory levels to better service our customers. We remain
cautious and prepared as high levels of inflationary pressure and
volatility remain in the market. We are optimistic and confident in
the ability of our world-class team to adapt as needed and execute
our key strategic initiatives to help increase productivity,
improve service and exceed our valued customers’ expectations.”
Positioning the Company for Future
Growth
Pactiv Evergreen continues to focus on executing
strategic priorities to better position the Company for future
growth:
- On January 5, 2022,
the Company announced an agreement to sell its carton packaging and
filling machinery businesses in China, Korea and Taiwan to SIG
Schweizerische Industrie-Gesellschaft GmbH, for $335 million,
subject to adjustments for cash, indebtedness and working capital
as of the date of completion. The Company believes that this
transaction, which is expected to close in the second or third
quarter of 2022, will position it to further its strategic focus in
North America, where the Company is established as a leading
manufacturer of fresh food and beverage packaging, servicing many
of the world’s most beloved brands.
- On February 24,
2022, with Pactiv Evergreen Pension Plan (“PEPP”) assets, the
Company purchased a non-participating group annuity contract from
an insurance company and transferred $1,257 million of pension plan
gross liabilities. As a result of this and the July 2021
transaction, in aggregate, the Company has reduced gross PEPP
liabilities by $2,216 million.
- On March 29, 2022,
the Company completed the sale of its 50 percent interest in
Naturepak Beverage Packaging Co. Ltd. (“Naturepak”), which supplies
customers in the Middle East and Africa region from manufacturing
plants in Morocco and Saudi Arabia, and received preliminary
proceeds of $47 million and recognized a gain of $27 million.
________________________1 Adjusted EBITDA is a non-GAAP measure.
Refer to its definition in the discussion on non-GAAP financial
measures and the accompanying reconciliation below.
First Quarter 2022 Results
Net revenues in the first quarter of 2022 were
$1,495 million compared to $1,164 million in the prior year period.
The increase was primarily due to favorable pricing, due to the
contractual pass-through of higher material costs and pricing
actions across all of our segments. In addition, the Foodservice
segment’s acquisition of Fabri-Kal on October 1, 2021 contributed
$102 million of incremental sales for the three months ended March
31, 2022 as compared to the three months ended March 31, 2021.
These increases were partially offset by lower sales volume,
primarily due to labor shortages in our Food Merchandising segment
as well as our strategic exit, in December 2021, from the coated
groundwood business in our Beverage Merchandising segment.
Net income from continuing operations was $43
million in the first quarter of 2022 compared to a net loss of $11
million in the first quarter of 2021. The change was primarily
driven by $124 million of higher gross profit and a $27 million
gain on the sale of our stake in Naturepak. Higher gross profit was
primarily driven by favorable pricing, net of higher material,
manufacturing and logistics costs, plus the benefit related to
prior year period costs of $39 million from Winter Storm Uri and
$16 million due to a scheduled cold mill outage that did not recur
in the current year period. These items were partially offset by a
$54 million increase in tax expense, primarily attributable to the
improved profitability.
Adjusted EBITDA1 was $182 million in the first
quarter of 2022 compared to $77 million in the first quarter of
2021. The increase reflects favorable pricing, due to the
contractual pass-through of higher material costs and pricing
actions, and the impact from the acquisition of Fabri-Kal,
partially offset by higher material, manufacturing and logistics
costs. The increase in Adjusted EBITDA also includes the benefit
related to prior year period costs of $39 million from Winter Storm
Uri and $16 million due to a scheduled cold mill outage that did
not recur in the current year period.
Segment Results (compared to the first
quarter of 2021)
Foodservice
|
|
For the Three Months Ended March 31, |
|
|
Components of Change in Net Revenues |
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
|
Acquisitions |
|
|
FX |
|
Total segment net revenues |
|
$ |
697 |
|
|
$ |
454 |
|
|
$ |
243 |
|
|
|
54 |
% |
|
|
34 |
% |
|
|
(2 |
)% |
|
|
22 |
% |
|
|
— |
% |
Segment Adjusted EBITDA |
|
$ |
116 |
|
|
$ |
61 |
|
|
$ |
55 |
|
|
|
90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA
margin |
|
|
17 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in net revenues was primarily due
to favorable pricing, due to the contractual pass-through of higher
material costs and pricing actions. In addition, the acquisition of
Fabri-Kal on October 1, 2021 contributed $102 million of
incremental sales for the three months ended March 31, 2022 as
compared to the three months ended March 31, 2021. These increases
were partially offset by lower sales volume.
The increase in Adjusted EBITDA was primarily
due to favorable pricing and the impact from the acquisition of
Fabri-Kal, partially offset by higher material, manufacturing and
logistics costs.
Food Merchandising
|
|
For the Three Months Ended March 31, |
|
|
Components of Change in Net Revenues |
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
|
FX |
|
Total segment net revenues |
|
$ |
404 |
|
|
$ |
342 |
|
|
$ |
62 |
|
|
|
18 |
% |
|
|
24 |
% |
|
|
(6 |
)% |
|
|
— |
% |
Segment Adjusted EBITDA |
|
$ |
60 |
|
|
$ |
55 |
|
|
$ |
5 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA
margin |
|
|
15 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in net revenues was primarily due
to favorable pricing, due to the contractual pass-through of higher
material costs and pricing actions, partially offset by lower sales
volume, primarily due to labor shortages.
The increase in Adjusted EBITDA was primarily
due to favorable pricing, partially offset by higher material and
manufacturing costs, lower sales volume and higher logistics
costs.
Beverage Merchandising
|
|
For the Three Months Ended March 31, |
|
|
Components of Change in Net Revenues |
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
|
FX |
|
Total segment net revenues |
|
$ |
403 |
|
|
$ |
357 |
|
|
$ |
46 |
|
|
|
13 |
% |
|
|
18 |
% |
|
|
(4 |
)% |
|
|
(1 |
)% |
Segment Adjusted EBITDA |
|
$ |
24 |
|
|
$ |
(32 |
) |
|
$ |
56 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA
margin |
|
|
6 |
% |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM indicates that the calculation is “not
meaningful”.
The increase in net revenues was primarily due
to favorable pricing, due to pricing actions and the contractual
pass-through of higher material costs, and favorable product mix.
These increases were partially offset by lower sales volume,
primarily due to our strategic exit, in December 2021, from the
coated groundwood business.
The increase in Adjusted EBITDA reflects
favorable pricing and the benefit related to prior year period
costs of $34 million from Winter Storm Uri and $16 million due to a
scheduled cold mill outage that did not recur. These items were
partially offset by higher material, manufacturing and logistics
costs.
Balance Sheet and Cash Flow
Highlights
- Cash and cash
equivalents were $283 million as of March 31, 2022, with a further
$19 million of cash and cash equivalents classified within current
assets held for sale.
- Total outstanding
debt was $4,271 million at March 31, 2022.
- For the quarter
ended March 31, 2022, capital expenditures totaled $50
million.
- The Company paid
dividends to shareholders of $0.10 per share during the three
months ended March 31, 2022. The Company’s Board of Directors
declared a first quarter 2022 dividend on May 3, 2022 of $0.10 per
share of common stock, payable on June 15, 2022 to shareholders of
record as of May 31, 2022.
Outlook
While we are off to a solid start in 2022 with
first quarter Adjusted EBITDA1 of $182 million, we are maintaining
our Adjusted EBITDA guidance of $705 million for 2022 at this
time.2 We are encouraged by the progress we have made in our mill
operations as well as the improvement in our labor levels but
remain cautious due to the continued inflationary pressures in the
market as well as the uncertainty around the global energy markets
and its impact on raw materials, logistics and other costs. While
this uncertainty remains, we are confident in our ability to manage
these higher costs and execute on our strategy to continue to
improve our profitability.
________________________
2 The Company is unable to provide a
reconciliation of forward-looking Adjusted EBITDA from continuing
operations without unreasonable effort because of the uncertainty
and potential variability in amount and timing of gains or losses
on the sale of businesses and noncurrent assets, non-cash pension
income or expense, unrealized gains or losses on derivatives and
foreign exchange gains or losses on cash, which are reconciling
items between GAAP net income (loss) from continuing operations and
Adjusted EBITDA from continuing operations and could significantly
impact GAAP results.
Conference Call and Webcast Presentation
The Company will host a conference call and
webcast presentation to discuss these results on May 5, 2022 at
8:00 a.m. U.S. Eastern Time. Investors interested in participating
in the live call may dial (844) 825-9789 from the U.S. or (412)
317-5180 internationally and use access code 10165348. Participants
may also access the live webcast and supplemental presentation on
the Pactiv Evergreen Investor Relations website at
https://investors.pactivevergreen.com/financial-information/sec-filings
under “News & Events.” The Company may from time to time use
this Investor Relations website as a means of disclosing material
non-public information and for complying with our disclosure
obligations under Regulation FD.
About Pactiv Evergreen Inc.
Pactiv Evergreen Inc. (NASDAQ: PTVE) is a leading manufacturer and
distributor of fresh foodservice and food merchandising products
and fresh beverage cartons in North America. With a team of
approximately 16,500 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.
Note to Investors Regarding
Forward-Looking Statements
This press release contains forward-looking
statements. All statements contained in this press release other
than statements of historical fact are forward-looking statements,
including statements regarding our guidance as to our future
financial results and our expectations regarding the duration and
severity of ongoing macroeconomic challenges. In some cases, you
can identify these statements by forward-looking words such as
“may,” “might,” “will,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential,”
“likely” or “continue,” the negative of these terms and other
comparable terminology. These statements are only predictions based
on our expectations and projections about future events as of the
date of this press release and are subject to a number of risks,
uncertainties and assumptions that may prove incorrect, any of
which could cause actual results to differ materially from those
expressed or implied by such statements, including, among others,
those described under the heading “Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2021 filed with
the Securities and Exchange Commission, or SEC, and our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2022 to be
filed with the SEC. New risks emerge from time to time, and it is
not possible for our management to predict all risks, nor can
management assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statement the Company makes. Investors are
cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. Except
as otherwise required by law, the Company undertakes no obligation
to update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Use of Non-GAAP Financial Measures
The Company uses the non-GAAP financial measure
“Adjusted EBITDA” in evaluating our 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, including but not limited to restructuring, asset
impairment and other related charges, gains on the sale of
businesses and noncurrent assets, non-cash pension income,
operational process engineering-related consultancy costs, business
acquisition and integration costs and purchase accounting
adjustments, unrealized gains or losses on derivatives, foreign
exchange losses on cash and executive transition charges. The
Company has provided below a reconciliation of Adjusted EBITDA from
continuing operations to net income (loss) from continuing
operations, the most directly comparable GAAP financial
measure.
The Company presents Adjusted EBITDA because it
is a key measure used by our management team to evaluate its
operating performance, generate future operating plans, make
strategic decisions and incentivize and reward its employees. In
addition, our chief operating decision maker uses the Adjusted
EBITDA of each reportable segment to evaluate its respective
operating performance. Accordingly, the Company believes that
presenting this metric provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management team and Board of Directors. The
Company also believes that Adjusted EBITDA and similar measures are
widely used by investors, securities analysts, rating agencies and
other parties in evaluating companies as measures of financial
performance and debt service capabilities.
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, our Adjusted EBITDA
metric may not be the same as or comparable to similar non-GAAP
financial measures presented by other companies. Because of these
and other limitations, you should consider Adjusted EBITDA
alongside other financial performance measures, including our net
income (loss) and other GAAP results. In addition, in evaluating
Adjusted EBITDA, you should be aware that in the future the Company
will incur expenses such as those that are the subject of
adjustments in deriving Adjusted EBITDA and you should not infer
from our presentation of Adjusted EBITDA that our future results
will not be affected by these expenses or any unusual or
non-recurring items.
Pactiv Evergreen
Inc.Condensed Consolidated Statements of Income
(Loss)(in millions, except per share
amounts)(unaudited)
|
|
For the Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Net revenues |
|
$ |
1,495 |
|
|
$ |
1,164 |
|
Cost of sales |
|
|
(1,263 |
) |
|
|
(1,056 |
) |
Gross
profit |
|
|
232 |
|
|
|
108 |
|
Selling, general and
administrative expenses |
|
|
(142 |
) |
|
|
(126 |
) |
Restructuring, asset
impairment and other related charges |
|
|
— |
|
|
|
2 |
|
Other income, net |
|
|
28 |
|
|
|
6 |
|
Operating income
(loss) from continuing operations |
|
|
118 |
|
|
|
(10 |
) |
Non-operating income, net |
|
|
10 |
|
|
|
23 |
|
Interest expense, net |
|
|
(49 |
) |
|
|
(42 |
) |
Income (loss) from
continuing operations before tax |
|
|
79 |
|
|
|
(29 |
) |
Income tax (expense)
benefit |
|
|
(36 |
) |
|
|
18 |
|
Income (loss) from
continuing operations |
|
|
43 |
|
|
|
(11 |
) |
Loss from discontinued
operations, net of income taxes |
|
|
— |
|
|
|
(3 |
) |
Net income
(loss) |
|
|
43 |
|
|
|
(14 |
) |
Income attributable to
non-controlling interests |
|
|
— |
|
|
|
(1 |
) |
Net income (loss)
attributable to Pactiv Evergreen Inc. common
shareholders |
|
$ |
43 |
|
|
$ |
(15 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Pactiv Evergreen Inc. common
shareholders |
|
|
|
|
|
|
|
|
From continuing operations - basic & diluted |
|
$ |
0.24 |
|
|
$ |
(0.07 |
) |
From discontinued operations - basic & diluted |
|
$ |
— |
|
|
$ |
(0.02 |
) |
Total - basic & diluted |
|
$ |
0.24 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic |
|
|
177.6 |
|
|
|
177.2 |
|
Weighted-average shares outstanding - diluted |
|
|
178.0 |
|
|
|
177.2 |
|
Pactiv Evergreen
Inc.Condensed Consolidated Balance
Sheets(in
millions)(unaudited)
|
|
As of March 31,2022 |
|
|
As of December 31,2021 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
283 |
|
|
$ |
197 |
|
Accounts receivable, net |
|
|
502 |
|
|
|
474 |
|
Related party receivables |
|
|
41 |
|
|
|
48 |
|
Inventories |
|
|
968 |
|
|
|
854 |
|
Other current assets |
|
|
113 |
|
|
|
127 |
|
Assets held for sale |
|
|
134 |
|
|
|
162 |
|
Total current
assets |
|
|
2,041 |
|
|
|
1,862 |
|
Property, plant and equipment, net |
|
|
1,771 |
|
|
|
1,786 |
|
Operating lease right-of-use assets, net |
|
|
272 |
|
|
|
278 |
|
Goodwill |
|
|
1,812 |
|
|
|
1,812 |
|
Intangible assets, net |
|
|
1,112 |
|
|
|
1,127 |
|
Deferred income taxes |
|
|
7 |
|
|
|
7 |
|
Other noncurrent assets |
|
|
147 |
|
|
|
149 |
|
Total
assets |
|
$ |
7,162 |
|
|
$ |
7,021 |
|
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
433 |
|
|
$ |
364 |
|
Related party payables |
|
|
11 |
|
|
|
10 |
|
Current portion of long-term debt |
|
|
30 |
|
|
|
30 |
|
Current portion of operating lease liabilities |
|
|
62 |
|
|
|
61 |
|
Income taxes payable |
|
|
5 |
|
|
|
8 |
|
Accrued and other current liabilities |
|
|
373 |
|
|
|
315 |
|
Liabilities held for sale |
|
|
27 |
|
|
|
31 |
|
Total current
liabilities |
|
|
941 |
|
|
|
819 |
|
Long-term debt |
|
|
4,213 |
|
|
|
4,220 |
|
Long-term operating lease liabilities |
|
|
222 |
|
|
|
229 |
|
Deferred income taxes |
|
|
231 |
|
|
|
246 |
|
Long-term employee benefit obligations |
|
|
194 |
|
|
|
79 |
|
Other noncurrent liabilities |
|
|
144 |
|
|
|
140 |
|
Total
liabilities |
|
$ |
5,945 |
|
|
$ |
5,733 |
|
Total equity
attributable to Pactiv Evergreen Inc. common
shareholders |
|
|
1,213 |
|
|
|
1,284 |
|
Non-controlling interests |
|
|
4 |
|
|
|
4 |
|
Total
equity |
|
$ |
1,217 |
|
|
$ |
1,288 |
|
Total liabilities and
equity |
|
$ |
7,162 |
|
|
$ |
7,021 |
|
Pactiv Evergreen
Inc.Condensed Consolidated Statements of Cash
Flows(in
millions)(unaudited)
|
|
For the Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Cash provided by operating activities |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
43 |
|
|
$ |
(14 |
) |
Adjustments to reconcile net
income (loss) to operating cash flows: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
84 |
|
|
|
73 |
|
Deferred income taxes |
|
|
18 |
|
|
|
(27 |
) |
Unrealized (gain) loss on derivatives |
|
|
(5 |
) |
|
|
1 |
|
Other asset impairment charges |
|
|
— |
|
|
|
(2 |
) |
Gain on sale of businesses and noncurrent assets |
|
|
(27 |
) |
|
|
— |
|
Non-cash portion of employee benefit obligations |
|
|
(10 |
) |
|
|
(21 |
) |
Non-cash portion of operating lease expense |
|
|
19 |
|
|
|
20 |
|
Amortization of OID and DIC |
|
|
1 |
|
|
|
1 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1 |
|
Equity based compensation |
|
|
4 |
|
|
|
4 |
|
Other non-cash items, net |
|
|
2 |
|
|
|
(2 |
) |
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(11 |
) |
|
|
(51 |
) |
Inventories |
|
|
(115 |
) |
|
|
(35 |
) |
Other current assets |
|
|
9 |
|
|
|
(3 |
) |
Accounts payable |
|
|
66 |
|
|
|
41 |
|
Operating lease payments |
|
|
(19 |
) |
|
|
(19 |
) |
Income taxes payable/receivable |
|
|
(1 |
) |
|
|
25 |
|
Accrued and other current liabilities |
|
|
59 |
|
|
|
13 |
|
Employee benefit obligation contributions |
|
|
(1 |
) |
|
|
— |
|
Other assets and liabilities |
|
|
4 |
|
|
|
4 |
|
Net cash provided by
operating activities |
|
|
120 |
|
|
|
9 |
|
Cash used in investing
activities |
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
|
(50 |
) |
|
|
(60 |
) |
Acquisition of business, net of cash acquired |
|
|
(2 |
) |
|
|
— |
|
Disposal of businesses and joint venture equity interests, net of
cash disposed |
|
|
47 |
|
|
|
(6 |
) |
Net cash used in
investing activities |
|
|
(5 |
) |
|
|
(66 |
) |
Cash used in financing
activities |
|
|
|
|
|
|
|
|
Long-term debt repayments |
|
|
(6 |
) |
|
|
(62 |
) |
Premium on redemption of long-term debt |
|
|
— |
|
|
|
(1 |
) |
Dividends paid to common shareholders |
|
|
(18 |
) |
|
|
(18 |
) |
Other financing activities |
|
|
(3 |
) |
|
|
— |
|
Net cash used in
financing activities |
|
|
(27 |
) |
|
|
(81 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
— |
|
|
|
(2 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
88 |
|
|
|
(140 |
) |
Cash and cash equivalents as of beginning of the period(1) |
|
|
214 |
|
|
|
468 |
|
Cash and cash
equivalents as of end of the
period(1) |
|
$ |
302 |
|
|
$ |
328 |
|
(1) includes $19 million, $17 million and $10 million and of
cash and cash equivalents classified as current assets held for
sale as of March 31, 2022, December 31, 2021 and December 31, 2020,
respectively.
Pactiv Evergreen
Inc.Reconciliation of Reportable Segment Net
Revenues to Total Net Revenues(in
millions)(unaudited)
|
|
For the Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Reportable segment net revenues |
|
|
|
|
|
|
|
|
Foodservice |
|
$ |
697 |
|
|
$ |
454 |
|
Food Merchandising |
|
|
404 |
|
|
|
342 |
|
Beverage Merchandising |
|
|
403 |
|
|
|
357 |
|
Other |
|
|
22 |
|
|
|
29 |
|
Inter-segment revenues |
|
|
(31 |
) |
|
|
(18 |
) |
Total net
revenues |
|
$ |
1,495 |
|
|
$ |
1,164 |
|
Pactiv Evergreen
Inc.Reconciliation of Reportable Segment Adjusted
EBITDA to Adjusted EBITDA from Continuing
Operations(in
millions)(unaudited)
|
|
For the Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Reportable segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
Foodservice |
|
$ |
116 |
|
|
$ |
61 |
|
Food Merchandising |
|
|
60 |
|
|
|
55 |
|
Beverage Merchandising |
|
|
24 |
|
|
|
(32 |
) |
Other |
|
|
— |
|
|
|
1 |
|
Unallocated |
|
|
(18 |
) |
|
|
(8 |
) |
Adjusted EBITDA from
continuing operations (Non-GAAP) |
|
$ |
182 |
|
|
$ |
77 |
|
Pactiv Evergreen
Inc.Reconciliation of Net Income (Loss) from
Continuing Operations to Adjusted EBITDA from Continuing
Operations(in
millions)(unaudited)
|
|
For the Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Net income (loss) from continuing operations
(GAAP) |
|
$ |
43 |
|
|
$ |
(11 |
) |
Income tax expense
(benefit) |
|
|
36 |
|
|
|
(18 |
) |
Interest expense, net |
|
|
49 |
|
|
|
42 |
|
Depreciation and
amortization |
|
|
84 |
|
|
|
73 |
|
Restructuring, asset
impairment and other related charges(1) |
|
|
— |
|
|
|
(2 |
) |
Gain on sale of businesses and
noncurrent assets(2) |
|
|
(27 |
) |
|
|
— |
|
Non-cash pension
income(3) |
|
|
(10 |
) |
|
|
(23 |
) |
Operational process
engineering-related consultancy costs(4) |
|
|
3 |
|
|
|
3 |
|
Business acquisition and
integration costs and purchase accounting adjustments(5) |
|
|
4 |
|
|
|
— |
|
Unrealized (gains) losses on
derivatives(6) |
|
|
(5 |
) |
|
|
1 |
|
Foreign exchange losses on
cash(7) |
|
|
2 |
|
|
|
— |
|
Executive transition
charges(8) |
|
|
— |
|
|
|
10 |
|
Costs associated with legacy
sold facility(9) |
|
|
3 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
2 |
|
Adjusted EBITDA from
continuing operations (Non-GAAP) |
|
$ |
182 |
|
|
$ |
77 |
|
(1) Reflects restructuring,
asset impairment and other related charges (net of reversals)
primarily associated with our remaining closures
businesses.(2) Reflects the gain from the sale of
businesses and noncurrent assets, primarily related to the sale of
our equity interests in Naturepak.(3) Reflects the
non-cash pension income related to our employee benefit plans,
including the pension settlement gain of $10 million recognized
during the three months ended March 31,
2022.(4) Reflects the costs incurred to evaluate
and improve the efficiencies of our manufacturing and distribution
operations.(5) Reflects integration costs related
to the acquisition of Fabri-Kal.(6) Reflects the
mark-to-market movements in our commodity
derivatives.(7) Reflects foreign exchange losses
on cash, primarily on U.S. dollar amounts held in non-U.S. dollar
functional currency entities.(8) Reflects charges
relating to key executive retirement and separation agreements in
the first quarter of 2021.(9) Reflects costs
related to a closed facility, sold prior to our acquisition of the
entity.
Contact:Dhaval
Patel732.501.9657dhaval.patel@pactivevergreen.com
Pactiv Evergreen (NASDAQ:PTVE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pactiv Evergreen (NASDAQ:PTVE)
Historical Stock Chart
From Jul 2023 to Jul 2024