Sales Growth Accelerated Raising Full
Year Outlook
Net sales of $1.3 billion, up
8% as reported; up 6% constant currency Net earnings
of $106 million, down 8%; EPS of $0.68, down 8%
Adjusted EBITDA of $268 million, up 6%;
Adjusted EPS of $0.78, up 7% Cash flow from operations
of $80 million, up 95%
Sealed Air Corporation (NYSE: SEE) today announced financial
results for the first quarter 2021.
“Our Q1 results reflect strong performance and
our focus on automation, digital and sustainability. Net sales
increased 8% with strength in eCommerce, food retail and equipment,
combined with increasing momentum in industrials. Adjusted EBITDA
increased 6% as higher volumes and productivity improvements more
than offset global supply chain disruptions related to Winter Storm
Uri,” said Ted Doheny, Sealed Air’s President and CEO.
“As market opportunities move to a 'touchless
environment,' customers are looking to Sealed Air's leadership in
automation, service, and high-performance packaging materials.
Strong operational execution as well as growth opportunities give
us confidence to raise our full year outlook,” continued
Doheny.
Unless otherwise stated, all results compare first quarter 2021
to first quarter 2020 results from continuing operations.
Year-over-year financial discussions present operating results from
continuing operations as reported. Year-over-year comparisons are
also made on a constant dollar basis, which is a non-U.S. GAAP
measure. Constant dollar refers to changes in net sales and
earnings, including changes in unit volume and price performance,
but excluding the impact of currency translation. Additionally,
non-U.S. GAAP adjusted financial measures, such as Adjusted
Earnings Before Interest Expense, Taxes, Depreciation and
Amortization ("Adjusted EBITDA"), Adjusted Net Earnings, Adjusted
Diluted Earnings Per Share ("Adjusted EPS") and Adjusted Tax Rate,
exclude the impact of specified items ("Special Items"), such as
restructuring charges, restructuring associated costs, gains and
losses related to acquisition and divestiture of businesses,
special tax items ("Tax Special Items") and certain infrequent or
one-time items. Please refer to the supplemental information
included with this press release for a reconciliation of U.S. GAAP
to Non-U.S. GAAP financial measures.
Business Highlights
First quarter net sales in Food were $702 million, an increase
of 2% as reported, primarily driven by a favorable currency impact
of 1.5%. On a constant dollar basis, net sales were essentially
flat with 5% growth in Asia Pacific (APAC) and 1% in EMEA, largely
offset by a 1% decline in Americas. Americas includes both North
and South America. Retail and equipment demand remained strong,
while food service trends continued to trail prior year levels.
Adjusted EBITDA of $157 million, or 22.3% of net sales, compares to
$156 million, or 22.6% of net sales, in the prior year. Reinvent
SEE productivity improvements were offset by raw material inflation
and higher costs related to the winter storm supply chain
disruptions.
First quarter net sales in Protective were $565 million, an
increase of 17% as reported. Currency had a favorable impact of $15
million, or 3%. On a constant dollar basis, net sales increased $67
million, or 14%, driven by a 13% increase in volume. Continued
momentum in e-Commerce, fulfillment and automated equipment, along
with a recovery in industrial segments, contributed to constant
dollar growth of 23% in APAC, 14% in EMEA and 12% in Americas.
Adjusted EBITDA increased 18% to $110 million, or 19.5% of sales.
The increase in Adjusted EBITDA was primarily attributable to
volume growth and Reinvent SEE productivity improvements, partially
offset by raw material inflation and higher costs related to the
winter storm supply chain disruptions.
First Quarter 2021 U.S. GAAP Summary
Net sales of $1.3 billion increased 8% as reported. Currency
contributed $25 million, or approximately 2%, to net sales as
compared to first quarter 2020.
Net earnings in first quarter 2021 were $106 million, or $0.68
per diluted share, as compared to net earnings of $115 million, or
$0.74 per diluted share, in first quarter 2020.
The effective tax rate in first quarter 2021 was 34.0%, as
compared to 22.2% in first quarter 2020. The current year effective
tax rate was unfavorably impacted by legislative and administrative
changes to enacted foreign statutes. The lower prior year tax rate
was favorably impacted by the resolution of specific uncertain tax
positions associated with a U.S. IRS audit.
First Quarter 2021 Non-U.S. GAAP Summary
Net sales increased $68 million, or 6%, on a constant dollar
basis. Volumes increased $60 million, or 5%. Volumes were higher
across all regions, with APAC up 13%, EMEA up 7% and Americas up
3%. Pricing increased 1%, primarily in Americas.
Adjusted EBITDA was $268 million, or 21.2% of net sales in first
quarter 2021 as compared to $253 million, or 21.6% in first quarter
2020. Currency fluctuations had a favorable impact of $4 million,
or 2% in first quarter 2021. The increase in Adjusted EBITDA was
largely due to volume growth and benefits from our Reinvent SEE
business transformation, partially offset by raw material inflation
and higher costs related to the winter storm supply chain
disruptions.
The Adjusted Tax Rate was 27.6% in first quarter 2021, as
compared to 27.9% in first quarter 2020.
Adjusted earnings per diluted share were $0.78 in first quarter
2021, as compared to $0.73 in first quarter 2020. The increase in
Adjusted EPS was attributable to higher Adjusted EBITDA.
Cash Flow and Net Debt
Cash flow provided by operating activities for first quarter
2021 was a source of $80 million, as compared to a source of $41
million for first quarter 2020. The increase in cash from operating
activities was primarily due to a tax refund of $24 million
received during the quarter and lower restructuring and associated
payments of $5 million in first quarter 2021, as compared to $26
million in first quarter 2020. Capital expenditures were $44
million during first quarter 2021 as compared to $49 million in the
same period last year. Free Cash Flow, defined as net cash provided
by operating activities less capital expenditures, was a source of
$36 million in first quarter 2021, as compared to a use of $8
million in first quarter 2020.
During first quarter 2021, the Company repurchased 4 million
shares for an aggregate cost of $177 million and paid cash
dividends of $26 million.
Net Debt, defined as total debt less cash and cash equivalents,
was $3.4 billion as of March 31, 2021 as compared to $3.2 billion
as of December 31, 2020. As of March 31, 2021, Sealed Air had
approximately $1.5 billion of liquidity available, comprised of
$370 million of cash and $1,133 million of undrawn, committed
credit facilities.
Updated 2021 Full Year Outlook
For the full year 2021, Sealed Air now expects net sales in the
range of $5.25 billion to $5.35 billion, which represents an
increase of 7% to 9% as reported and 6% to 8% in constant dollars.
This compares to the Company's previous net sales outlook in the
range of $5.10 billion to $5.20 billion. Adjusted EBITDA is now
expected to be in the range of $1.12 billion to $1.15 billion,
compared to the previous outlook of $1.10 billion to $1.13 billion.
Sealed Air now forecasts Adjusted EPS to be in the range of $3.40
to $3.55, which is based on approximately 154 million weighted
average shares outstanding. The Company continues to anticipate the
Adjusted Tax Rate to be 26% to 27%. The previous EPS range was
$3.25 to $3.40 based on 157 million shares.
Free Cash Flow in 2021 is now expected to be in the range of
$520 million to $570 million, with capital expenditures of
approximately $210 million and Reinvent SEE restructuring and
associated payments of approximately $40 million. This compares to
the previous Free Cash Flow range of $500 million to $550
million.
Conference Call Information
Sealed Air Corporation will host a conference call and webcast
on Tuesday, May 4, 2021 at 10:00 a.m. (ET) to discuss our First
Quarter 2021 Results. The conference call will be webcast live on
the Investors homepage at www.sealedair.com/investors. A replay of
the webcast will also be available thereafter.
About Sealed Air (NYSE: SEE)
Sealed Air is in business to protect, to solve critical
packaging challenges and to make our world better than we found it.
Our packaging technology, solutions and systems create a safer,
more resilient and less wasteful global food supply chain, enable
eCommerce and protect the movement of goods worldwide.
Our globally recognized brands include CRYOVAC® brand food
packaging, SEALED AIR® brand protective packaging, AUTOBAG® brand
automated systems, BUBBLE WRAP® brand packaging and SEETM
Automation solutions.
Our SEE Operating Model, along with industry-leading experts in
materials, engineering, technology and science, are driving our
innovative solution systems to be more sustainable, automated and
digitally connected.
Sealed Air is leading the packaging industry to create a more
environmentally, socially, and economically sustainable future and
has pledged to design or advance 100% of its packaging materials to
be recyclable or reusable by 2025, and an even bolder goal to reach
net-zero carbon emissions in its global operations by 2040.
Sealed Air generated $4.9 billion in sales in 2020 and has
approximately 16,500 employees who serve customers in 117
countries/territories. To learn more, visit www.sealedair.com.
Website Information
We routinely post important information for investors on our
website, www.sealedair.com, in the Investors section. We use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD. Accordingly, investors should monitor the Investors section of
our website, in addition to following our press releases, SEC
filings, public conference calls, presentations and webcasts. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document.
Non-U.S. GAAP Information
In this press release and supplement, we have included several
non-U.S. GAAP financial measures, including Net Debt, Adjusted Net
Earnings and Adjusted EPS, net sales on an "organic" and a
“constant dollar” basis, Free Cash Flow, Adjusted EBITDA and
Adjusted Tax Rate, as our management believes these measures are
useful to investors. We present results and guidance, adjusted to
exclude the effects of Special Items and their related tax impact
that would otherwise be included under U.S. GAAP, to aid in
comparisons with other periods or prior guidance. In addition,
non-U.S. GAAP measures are used by management to review and analyze
our operating performance and, along with other data, as internal
measures for setting annual budgets and forecasts, assessing
financial performance, providing guidance and comparing our
financial performance with our peers and may also be used for
purposes of determining incentive compensation. The non-U.S. GAAP
information has limitations as an analytical tool and should not be
considered in isolation from or as a substitute for U.S. GAAP
information. It does not purport to represent any similarly titled
U.S. GAAP information and is not an indicator of our performance
under U.S. GAAP. Non-U.S. GAAP financial measures that we present
may not be comparable with similarly titled measures used by
others. Investors are cautioned against placing undue reliance on
these non-U.S. GAAP measures. For a reconciliation of these U.S.
GAAP measures to non-U.S. GAAP measures and other important
information on our use of non-U.S. GAAP financial measures, see the
attached supplementary information entitled “Condensed Consolidated
Statements of Cash Flows” (under the section entitled “Non-U.S.
GAAP Free Cash Flow”), “Reconciliation of Net Earnings and Net
Earnings Per Common Share to Non-U.S. GAAP Adjusted Net Earnings
and Non-U.S. GAAP Adjusted Net Earnings Per Common Share,”
“Reconciliation of Net Earnings to Non-U.S. GAAP Total Company
Adjusted EBITDA,” “Components of Change in Net Sales by Segment”
and “Components of Change in Net Sales by Region.” Information
reconciling forward-looking U.S. GAAP measures to non-U.S. GAAP
measures is not available without unreasonable effort.
We have not provided guidance for the most directly comparable
U.S. GAAP financial measures, as they are not available without
unreasonable effort due to the high variability, complexity, and
low visibility with respect to certain Special Items, including
restructuring charges, gains and losses related to acquisition and
divestiture of businesses, the ultimate outcome of certain legal or
tax proceedings, and other unusual gains and losses. These items
are uncertain, depend on various factors, and could be material to
our results computed in accordance with U.S. GAAP.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 concerning our business, consolidated
financial condition, results of operations or cash flows.
Forward-looking statements are subject to risks and uncertainties,
many of which are outside our control, which could cause actual
results to differ materially from these statements. Therefore, you
should not rely on any of these forward-looking statements.
Forward-looking statements can be identified by such words as
“anticipate,” “believe,” “plan,” “assume,” “could,” “should,”
“estimate,” “expect,” “intend,” “potential,” “seek,” “predict,”
“may,” “will” and similar references to future periods. All
statements other than statements of historical facts included in
this press release regarding our strategies, prospects, financial
condition, operations, costs, plans and objectives are
forward-looking statements. Examples of forward-looking statements
include, among others, statements we make regarding expected future
operating results, expectations regarding the results of
restructuring and other programs, anticipated levels of capital
expenditures and expectations of the effect on our financial
condition of claims, litigation, environmental costs, contingent
liabilities and governmental and regulatory investigations and
proceedings.
The following are important factors that we believe could cause
actual results to differ materially from those in our
forward-looking statements: global economic and political
conditions, currency translation and devaluation effects, changes
in raw material pricing and availability, competitive conditions,
the success of new product offerings, consumer preferences, the
effects of animal and food-related health issues, the effects of
epidemics or pandemics, including the Coronavirus Disease 2019
(COVID-19), changes in energy costs, environmental matters, the
success of our restructuring activities, the success of our merger,
acquisition and equity investment strategies, the success of our
financial growth, profitability, cash generation and manufacturing
strategies and our cost reduction and productivity efforts, changes
in our credit ratings, the tax benefit associated with the
Settlement agreement (as defined in our 2020 Annual Report on Form
10-K), regulatory actions and legal matters and the other
information referenced in the “Risk Factors” section appearing in
our most recent Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission, and as revised and updated by
our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Any forward-looking statement made by us is based only on
information currently available to us and speaks only as of the
date on which it is made. We undertake no obligation to publicly
update any forward-looking statement, whether written or oral, that
may be made from time to time, whether because of new information,
future developments or otherwise.
The supplementary information included for 2021 in this press
release on the current and subsequent pages is preliminary and
subject to change prior to the filing of our upcoming Quarterly
Report on Form 10-Q with the Securities and Exchange
Commission.
Sealed Air Corporation
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended March
31,
(In USD millions, except per share
data)
2021
2020
Net sales
$
1,267.1
$
1,173.9
Cost of sales
866.0
783.4
Gross profit
401.1
390.5
Selling, general and administrative
expenses
188.9
194.1
Amortization expense of intangible
assets
9.7
9.0
Restructuring charges
—
0.6
Operating profit
202.5
186.8
Interest expense, net
(43.1
)
(44.4
)
Other income, net
1.0
4.8
Earnings before income tax provision
160.4
147.2
Income tax provision
54.6
32.7
Net earnings from continuing
operations
105.8
114.5
Gain on sale of discontinued operations,
net of tax
4.3
12.1
Net earnings
$
110.1
$
126.6
Basic:
Continuing operations
$
0.68
$
0.74
Discontinued operations
0.03
0.08
Net earnings per common share -
basic
$
0.71
$
0.82
Weighted average common shares outstanding
- basic
154.1
154.5
Diluted:
Continuing operations
$
0.68
$
0.74
Discontinued operations
0.03
0.08
Net earnings per common share -
diluted
$
0.71
$
0.82
Weighted average number of common shares
outstanding - diluted
155.4
154.8
Sealed Air Corporation
Condensed Consolidated Balance
Sheets
(Unaudited)
(In USD millions)
March 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
370.0
$
548.7
Trade receivables, net
584.2
541.0
Income tax receivables
33.5
71.2
Other receivables
72.5
69.5
Inventories, net
652.3
596.7
Current assets held for sale
—
0.3
Prepaid expenses and other current
assets
47.0
54.1
Total current assets
1,759.5
1,881.5
Property and equipment, net
1,177.5
1,189.7
Goodwill
2,217.2
2,222.6
Identifiable intangible assets, net
164.2
171.0
Deferred taxes
172.9
187.1
Operating lease right-of-use-assets
70.2
76.1
Other non-current assets
357.2
355.8
Total assets
$
5,918.7
$
6,083.8
Liabilities and Stockholders'
Equity
Current liabilities:
Short-term borrowings
$
8.8
$
7.2
Current portion of long-term debt
22.1
22.3
Current portion of operating lease
liabilities
23.8
24.3
Accounts payable
814.0
754.2
Accrued restructuring costs
8.3
12.2
Income tax payable
25.9
19.9
Other current liabilities
423.5
527.3
Total current liabilities
1,326.4
1,367.4
Long-term debt, less current portion
3,706.6
3,731.4
Long-term operating lease liabilities,
less current portion
48.3
53.2
Deferred taxes
32.0
31.0
Other non-current liabilities
704.0
728.3
Total liabilities
5,817.3
5,911.3
Stockholders’ equity:
Preferred stock
—
—
Common stock
23.2
23.2
Additional paid-in capital
2,090.8
2,093.0
Retained earnings
2,485.6
2,400.7
Common stock in treasury
(3,528.6
)
(3,380.9
)
Accumulated other comprehensive loss, net
of taxes
(969.6
)
(963.5
)
Total stockholders’ equity
101.4
172.5
Total liabilities and stockholders’
equity
$
5,918.7
$
6,083.8
Calculation of Net
Debt
(Unaudited)
(In USD millions)
March 31, 2021
December 31, 2020
Short-term borrowings
$
8.8
$
7.2
Current portion of long-term debt
22.1
22.3
Long-term debt, less current portion
3,706.6
3,731.4
Total debt
3,737.5
3,760.9
Less: cash and cash equivalents
(370.0
)
(548.7
)
Non-U.S. GAAP Net Debt
$
3,367.5
$
3,212.2
Sealed Air Corporation
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Three Months Ended March
31,
(In USD millions)
2021
2020
Net earnings
$
110.1
$
126.6
Adjustments to reconcile net earnings to
net cash provided by operating activities(1)
68.4
55.0
Changes in operating assets and
liabilities:
Trade receivables, net
(56.0
)
(33.6
)
Inventories, net
(70.9
)
(27.6
)
Accounts payable
69.3
0.3
Customer advance payments
2.6
5.3
Income tax receivable/payable
44.4
23.1
Other assets and liabilities
(88.0
)
(108.1
)
Net cash provided by operating
activities
$
79.9
$
41.0
Cash flows from investing activities:
Capital expenditures
(43.9
)
(48.7
)
Receipts associated with sale of business
and property and equipment
0.6
9.3
Payments associated with debt
investments
(6.0
)
—
Investment in marketable securities
—
12.2
Settlement of foreign currency forward
contracts
8.2
2.5
Other investing activities
0.1
—
Net cash used in investing
activities
$
(41.0
)
$
(24.7
)
Cash flows from financing activities:
Net proceeds of short-term borrowings
1.7
69.4
Payments of long-term debt
(2.8
)
—
Dividends paid on common stock
(25.8
)
(25.7
)
Impact of tax withholding on share-based
compensation
(13.7
)
(11.2
)
Repurchases of common stock
(177.1
)
—
Principal payments related to financing
leases
(2.6
)
(3.0
)
Net cash (used in) provided by
financing activities
$
(220.3
)
$
29.5
Effect of foreign currency exchange
rate changes on cash and cash equivalents
$
2.7
$
(33.6
)
Cash and cash equivalents
548.7
262.4
Restricted cash and cash equivalents
—
—
Balance, beginning of period
$
548.7
$
262.4
Net change during the period
$
(178.7
)
$
12.2
Cash and cash equivalents
370.0
274.6
Restricted cash and cash equivalents
—
—
Balance, end of period
$
370.0
$
274.6
Non-U.S. GAAP Free Cash Flow:
Cash flow from operating activities
$
79.9
$
41.0
Capital expenditures for property and
equipment
(43.9
)
(48.7
)
Free Cash Flow
$
36.0
$
(7.7
)
Three Months Ended March
31,
(In USD millions)
2021
2020
Supplemental Cash Flow
Information:
Interest payments, net of amounts
capitalized
$
43.3
$
50.0
Income tax (refunds) payments, net
$
(1.6
)
$
15.9
Restructuring payments including
associated costs
$
5.0
$
25.7
Non-cash items:
Transfers of shares of common stock from
treasury for profit-sharing contributions
$
28.0
$
24.4
_______________
(1)
2021 adjustments primarily consist of
depreciation and amortization of $46 million, share based
compensation expense of $11 million and profit sharing expense of
$6 million. 2020 adjustments primarily consist of depreciation and
amortization of $43 million, share based compensation expense of $9
million and profit sharing expense of $6 million.
Sealed Air Corporation
Reconciliation of Net Earnings
and Net Earnings Per Common Share to Non-U.S. GAAP Adjusted
Net Earnings and Non-U.S. GAAP
Adjusted Net Earnings Per Common Share
(Unaudited)
Three Months Ended March
31,
2021
2020
(In USD millions, except per share
data)
Net Earnings
Diluted EPS
Net Earnings
Diluted EPS
U.S. GAAP net earnings and diluted EPS
from continuing operations
$
105.8
$
0.68
$
114.5
$
0.74
Special Items(1)
16.0
0.10
(1.1
)
(0.01
)
Non-U.S. GAAP adjusted net earnings and
adjusted diluted EPS
$
121.8
$
0.78
$
113.4
$
0.73
Weighted average number of common
shares outstanding - Diluted
155.4
154.8
_______________
(1)
Special Items include the following:
Three Months Ended
March 31,
(In USD millions, except per share
data)
2021
2020
Special Items:
Restructuring charges
$
—
$
0.6
Other restructuring associated
costs(i)
5.3
4.0
Foreign currency exchange loss due to
highly inflationary economies
1.4
0.9
Charges related to acquisition and
divestiture activity
0.3
2.9
Other Special Items
0.8
1.7
Pre-tax impact of Special Items
7.8
10.1
Tax impact of Special Items and Tax
Special Items
8.2
(11.2
)
Net impact of Special Items
$
16.0
$
(1.1
)
Weighted average number of common
shares outstanding - Diluted
155.4
154.8
(Loss) Gain per share impact from
Special Items
$
(0.10
)
$
0.01
_______________
(i)
Restructuring associated costs for the
three months ended March 31, 2021 primarily relate to a one-time,
non-cash cumulative translation adjustment loss (CTA) recognized
due to the wind-up of one of our legal entities as well as fees
paid to third-party consultants in support of the Reinvent SEE
business transformation. Restructuring associated costs for the
three months ended March 31, 2020, primarily relate to fees paid to
third-party consultants in support of Reinvent SEE business
transformation.
The calculation of the non-U.S. GAAP
Adjusted income tax rate is as follows:
Three Months Ended
March 31,
(In USD millions)
2021
2020
U.S. GAAP Earnings before income tax
provision from continuing operations
$
160.4
$
147.2
Pre-tax impact of special items
7.8
10.1
Non-U.S. GAAP Adjusted Earnings before
income tax provision
$
168.2
$
157.3
U.S. GAAP Income tax provision from
continuing operations
$
54.6
$
32.7
Tax Special Items
(9.1
)
8.6
Tax impact of Special Items
0.9
2.6
Non-U.S. GAAP Adjusted Income tax
provision
$
46.4
$
43.9
U.S. GAAP Effective income tax rate
34.0
%
22.2
%
Non-U.S. GAAP Adjusted income tax rate
27.6
%
27.9
%
Sealed Air Corporation
Components of Change in Net
Sales by Segment
(Unaudited)
Three Months Ended March
31,
(In USD millions)
Food
Protective
Total Company
2020 Net Sales
$
690.3
58.8
%
$
483.6
41.2
%
$
1,173.9
100.0
%
Price
4.0
0.6
%
3.6
0.7
%
7.6
0.7
%
Volume(1)
(2.7
)
(0.4
)%
62.9
13.0
%
60.2
5.1
%
Total constant dollar change (non-U.S.
GAAP)(2)
1.3
0.2
%
66.5
13.7
%
67.8
5.8
%
Foreign currency translation
10.6
1.5
%
14.8
3.1
%
25.4
2.1
%
Total change (U.S. GAAP)
11.9
1.7
%
81.3
16.8
%
93.2
7.9
%
2021 Net Sales
$
702.2
55.4
%
$
564.9
44.6
%
$
1,267.1
100.0
%
Components of Change in Net
Sales by Region(3)
(Unaudited)
Three Months Ended March
31,
(In USD millions)
Americas
EMEA
APAC
Total
2020 Net Sales
$
766.3
65.2
%
$
246.1
21.0
%
$
161.5
13.8
%
$
1,173.9
100.0
%
Price
9.1
1.2
%
0.3
0.1
%
(1.8
)
(1.1
)%
7.6
0.7
%
Volume(1)
22.5
2.9
%
16.0
6.5
%
21.7
13.4
%
60.2
5.1
%
Total constant dollar change (non-U.S.
GAAP)(2)
31.6
4.1
%
16.3
6.6
%
19.9
12.3
%
67.8
5.8
%
Foreign currency translation
(10.0
)
(1.3
)%
18.9
7.7
%
16.5
10.2
%
25.4
2.1
%
Total change (U.S. GAAP)
21.6
2.8
%
35.2
14.3
%
36.4
22.5
%
93.2
7.9
%
2021 Net Sales
$
787.9
62.2
%
$
281.3
22.2
%
$
197.9
15.6
%
$
1,267.1
100.0
%
_______________
(1)
Our volume reported above includes the net
impact of changes in unit volume as well as the period-to-period
change in the mix of products sold.
(2)
Total constant dollar change is a non-U.S.
GAAP financial measure which excludes the impact of foreign
currency translation. Since we are a U.S. domiciled company, we
translate our foreign currency denominated financial results into
U.S. dollars. Due to changes in the value of foreign currencies
relative to the U.S. dollar, translating our financial results from
foreign currencies to U.S. dollars may result in a favorable or
unfavorable impact. It is important that we take into account the
effects of foreign currency translation when we view our results
and plan our strategies. Nonetheless, we cannot control changes in
foreign currency exchange rates. Consequently, when our management
looks at our financial results to measure the core performance of
our business, we exclude the impact of foreign currency translation
by translating our current period results at prior period foreign
currency exchange rates. We also may exclude the impact of foreign
currency translation when making incentive compensation
determinations. As a result, our management believes that these
presentations are useful internally and may be useful to our
investors.
(3)
As of January 1, 2021, we consolidated the
reporting of the North America and South America geographic
regions, which are now collectively presented as Americas. No
changes were made to EMEA or APAC. This change has no impact on our
prior period consolidated results and is only the aggregation of
the previously bifurcated continents.
Sealed Air Corporation
Segment Information
Reconciliation of Net Earnings
to Non-U.S. GAAP Total Company Adjusted EBITDA
(Unaudited)
Three Months Ended
March 31,
(In USD millions)
2021
2020
Adjusted EBITDA from continuing
operations:
Food
$
156.9
$
156.3
Adjusted EBITDA Margin
22.3
%
22.6
%
Protective
109.9
92.8
Adjusted EBITDA Margin
19.5
%
19.2
%
Corporate
1.4
4.1
Non-U.S. GAAP Total Company Adjusted
EBITDA
$
268.2
$
253.2
Adjusted EBITDA Margin
21.2
%
21.6
%
Three Months Ended
March 31,
(In USD millions)
2021
2020
U.S. GAAP Net earnings from continuing
operations
$
105.8
$
114.5
Interest expense, net
43.1
44.4
Income tax provision
54.6
32.7
Depreciation and amortization(1)
56.9
51.5
Special Items:
Restructuring charges
—
0.6
Other restructuring associated costs
5.3
4.0
Foreign currency exchange loss due to
highly inflationary economies
1.4
0.9
Charges related to acquisition and
divestiture activity
0.3
2.9
Other Special Items
0.8
1.7
Pre-tax impact of Special items
7.8
10.1
Non-U.S. GAAP Total Company Adjusted
EBITDA
$
268.2
$
253.2
_______________
(1)
Depreciation and amortization by segment
are as follows:
Three Months Ended
March 31,
(In USD millions)
2021
2020
Food
$
31.7
$
29.0
Protective
25.2
22.5
Total Company depreciation and
amortization(i)
$
56.9
$
51.5
(i)
Includes share-based incentive
compensation of $11.5 million and $8.5 million for the three months
ended March 31, 2021 and 2020, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504005372/en/
Investor Relations Lori Chaitman
lori.chaitman@sealedair.com 516.458.4455 Media Christina
Griffin christina.griffin@sealedair.com 704.430.5742
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