Fourth Quarter and Full Year 2024 Highlights
- Dustin Semach promoted to Chief
Executive Officer
- Completed the full reorganization into two market-focused
businesses, Food and Protective
- Food volume growth driven by competitive share gains and
continued end-market demand
- Protective portfolio rebalance and enhanced customer focus
continues
- Cost take-out generated $89
million of incremental cost savings for full-year 2024
- Net leverage ratio reduced to 3.6x with maintained focus on
deleveraging the balance sheet
- Providing our financial outlook for 2025
CHARLOTTE, N.C., Feb. 25,
2025 /PRNewswire/ -- Sealed Air Corporation (NYSE:
SEE) today reported financial results for the fourth quarter and
full year 2024 and provided its 2025 outlook.
"During the fourth quarter, we completed the reorganization into
two market-focused businesses, Food and Protective, and had a
strong finish to the year," said Dustin
Semach, Sealed Air's President and CEO. "We exceeded our
expectations across Adjusted EBITDA, Adjusted EPS and Free Cash
Flow, reflecting improved discipline in fundamentals. I want to
express my deep gratitude to our 16,400 plus Sealed Air team
members for their commitment to our transformation and their
tireless efforts in solving our customers' most critical packaging
challenges."
"With the foundation now firmly in place, we are focused on
maximizing the potential of each business based on their respective
end-markets and portfolios. We are accelerating the momentum in
Food by expanding further into higher growth end-markets with our
case ready and fluids solutions and continuing to stabilize
Protective. In parallel, we are continuing to streamline our
operations and drive further productivity across the company. As a
result, we are targeting growth and margin expansion in 2025. We
are focused on accelerating the pace of execution to improve the
outcomes for our customers and maximize value for our
shareholders," said Semach.
($ millions, except per share data)
|
GAAP
Results
|
Fourth
Quarter
|
|
Full
Year
|
|
2024
|
2023
|
Reported
△%
|
Constant Dollar
△%
|
|
2024
|
2023
|
Reported
△%
|
Constant Dollar
△%
|
|
Net Sales
|
$1,373
|
$1,378
|
(0.3) %
|
0.9 %
|
|
$5,393
|
$5,489
|
(1.8) %
|
(1.1) %
|
|
Net Earnings
|
$—
|
$125
|
(100.3) %
|
|
|
$270
|
$339
|
(20.6) %
|
|
|
Diluted EPS
|
$0.00
|
$0.86
|
(100.0) %
|
|
|
$1.84
|
$2.34
|
(21.4) %
|
|
|
Cash Flow from
Operations
|
|
|
|
|
|
$728
|
$516
|
41.0 %
|
|
|
Non-GAAP
Results
|
Fourth
Quarter
|
|
Full
Year
|
|
2024
|
2023
|
Reported
△%
|
|
2024
|
2023
|
Reported
△%
|
|
Adjusted
EBITDA
|
$271
|
$274
|
(1.3) %
|
|
$1,111
|
$1,107
|
0.4 %
|
|
Adjusted Net
Earnings
|
$110
|
$127
|
(13.9) %
|
|
$459
|
$461
|
(0.5) %
|
|
Adjusted Diluted
EPS
|
$0.75
|
$0.88
|
(14.8) %
|
|
$3.14
|
$3.18
|
(1.3) %
|
|
Free Cash
Flow(1)
|
|
|
|
|
$454
|
$467
|
(2.8) %
|
|
_____________________________
|
|
(1)
|
2023 excludes the
impact of $195 million of payments and deposits to resolve certain
prior year tax matters. 2024 excludes a $54 million refund received
from the IRS during fourth quarter 2024 related to the same tax
matters.
|
|
|
Unless otherwise
stated, all results compare fourth quarter 2024 results to fourth
quarter 2023 results from continuing operations. Year-over-year
financial discussions present operating results from continuing
operations as reported.
|
Financial Highlights
Fourth Quarter 2024
Net sales of $1.37 billion was
flat as reported in fourth quarter 2024 compared to fourth quarter
2023, with the Food segment increasing 3% and the Protective
segment decreasing 7%. Net sales increased $13 million, or 1%, on a constant dollar basis.
Volumes increased by $17 million, or
1%. Price had an unfavorable impact of $4
million, or less than 1%.
Income tax expense was $85
million, resulting in an effective tax rate of 100.5% in the
quarter. This compares to an income tax expense of $(9) million in the prior year, or an effective
tax rate of (7.8)%. The current year effective tax rate was
unfavorably impacted primarily by the discrete, one-time write-off
of a deferred tax asset associated with a legal entity
restructuring, whereas the prior year effective tax rate was
favorably impacted by the resolution of certain previous years' tax
matters. The Adjusted Tax Rate was 28.1% in the quarter, as
compared to 18.0% in the prior year. The fourth quarter 2023
Adjusted Tax Rate benefited from the reversal of previously accrued
liabilities related to uncertain tax positions.
Net loss was less than $1 million,
or less than ($0.01) per diluted
share, in fourth quarter 2024 as compared to net earnings of
$125 million, or $0.86 per diluted share, in fourth quarter 2023.
The current quarter results were unfavorably impacted by
$110 million of Special Items expense
compared to $3 million of Special
Items expense in the same quarter of the prior year. The increase
in Special Items expense in the current quarter were primarily
driven by unfavorable impacts related to income tax items, higher
restructuring and other associated costs related to the cost
take-out to grow program ("CTO2Grow Program") and an impairment
charge associated with a debt investment.
Adjusted earnings per diluted share decreased to $0.75, from $0.88
in the prior year, primarily due to higher adjusted tax expense,
partially offset by lower interest expense.
Adjusted EBITDA was $271 million,
or 19.7% of net sales, as compared to $274
million, or 19.9% in the prior year. The decrease in
Adjusted EBITDA was primarily due to unfavorable net price
realization and lower volume in Protective, partially offset by
higher Food volumes.
Full Year 2024
Net sales of $5.39 billion
decreased 2% as reported for full year 2024 compared to full year
2023, with the Food segment increasing 2% and the Protective
segment decreasing 8%. Net sales decreased $61 million, or 1%, on a constant dollar basis.
Volumes increased by $35 million, or
less than 1%. Price had an unfavorable impact of $119 million, or 2%.
Income tax expense was $189
million, resulting in an effective tax rate of 41.2% for the
current year. This compares to an income tax expense of
$90 million in the prior year, or an
effective tax rate of 21.0%. The current year effective tax rate
was unfavorably impacted by the discrete, one-time write-off of a
deferred tax asset associated with a legal entity restructuring,
whereas the prior year effective tax rate was favorably impacted by
the resolution of certain previous years' tax matters. The Adjusted
Tax Rate was 25.9% for full year 2024, as compared to 23.6% in the
prior year. The 2023 Adjusted Tax Rate benefited from the reversal
of previously accrued liabilities related to uncertain tax
positions.
Full year 2024 net earnings were $270
million, or $1.84 per diluted
share, as compared to net earnings of $339
million, or $2.34 per diluted
share, in full year 2023. The current year results were unfavorably
impacted by $189 million of Special
Items expense compared to $122
million of Special Items expense in the prior year. The
increase in Special Items expense were primarily driven by
unfavorable impacts related to income tax items, higher
restructuring costs related to the CTO2Grow Program and an
impairment charge associated with a debt investment, partially
offset by lower Liquibox acquisition related costs.
Adjusted earnings per diluted share decreased to $3.14, from $3.18
in the prior year, primarily due to higher adjusted tax expense and
higher shares outstanding, partially offset by lower interest
expense.
Adjusted EBITDA was $1,111
million, or 20.6% of net sales, as compared to $1,107 million, or 20.2% in the prior year. The
increase in Adjusted EBITDA was primarily due to lower operating
costs driven by productivity benefits as a result of the CTO2Grow
Program, partially offset by unfavorable net price realization in
Protective.
Business Segment Highlights
Fourth quarter net sales in Food were $923 million, an increase of 3% as reported
compared to fourth quarter 2023. Currency had an unfavorable impact
of $15 million, or 2%. On a constant
dollar basis, net sales increased $45
million, or 5%. Volumes increased by $44 million, or 5%, with growth in all regions
driven by competitive share gains and continued end-market demand.
Price had a favorable impact of $2
million. Adjusted EBITDA of $208
million, or 22.5% of net sales, increased 7% from
$195 million, or 21.8% of net sales,
in the prior year. The increase in Adjusted EBITDA was primarily
attributable to higher volumes.
Fourth quarter net sales in Protective were $450 million, a decrease of 7% as reported
compared to fourth quarter 2023. Net sales were unfavorably
impacted by currency fluctuation of $2
million, or less than 1%. On a constant dollar basis, net
sales decreased $32 million, or 7%.
Volumes decreased by $26 million, or
5%, resulting from continued weakness in our industrial and
fulfillment portfolios. Price had an unfavorable impact of
$6 million, or 1%. Adjusted EBITDA of
$67 million, or 14.8% of net sales,
decreased 26% from approximately $90
million, or 18.7% of net sales, in the prior year. The
decrease in Adjusted EBITDA was primarily attributable to lower
volumes and unfavorable net price realization.
Cash Flow and Net Debt
Cash flow provided by operating activities during full year 2024
was $728 million, as compared to
$516 million during 2023. Capital
expenditures were $220 million during
full year 2024, as compared to $244
million during 2023. Free cash flow, defined as net cash
provided by operating activities less capital expenditures, was a
source of $508 million during full
year 2024, as compared to a source of $272
million during the prior year. Excluding $195 million of deposits and payments during 2023
related to the resolution of previous years' tax matters and a
$54 million refund received during
fourth quarter 2024 related to the same matters, Free Cash Flow was
a source of $454 million during full
year 2024 compared to a source of $467
million in the prior year.
Dividend payments for both the full year 2024 and 2023 were
$118 million.
Net Debt, defined as total debt less cash and cash equivalents,
decreased to $4.0 billion as of
December 31, 2024 from $4.3 billion as of December 31, 2023. As of December 31, 2024, Sealed Air had approximately
$1.37 billion of available liquidity,
comprised of $372 million in cash and
$1.0 billion of available and unused
lines of credit under our committed credit facilities. The net
leverage ratio, defined as net debt divided by trailing twelve
month Adjusted EBITDA, was 3.6x as of December 31, 2024, as compared to 3.9x as of
December 31, 2023.
Outlook for Full Year 2025
|
(in $ millions except
EPS)
|
Range
|
Constant dollar
△%
|
|
Net Sales
|
$5,100 to
$5,500
|
(3%) to 4%
|
|
Adjusted
EBITDA
|
$1,075 to
$1,175
|
(1%) to 8%
|
|
Adjusted EPS
|
$2.90 to
$3.30
|
(4%) to 9%
|
|
Free Cash
Flow
|
$350 to $450
|
|
Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP
financial measures. We have not provided guidance for the most
directly comparable GAAP financial measures, as they are not
available without unreasonable effort due to the high variability,
complexity and low visibility of certain Special Items.
Conference Call Information
Sealed Air Corporation will host a conference call and webcast
on Tuesday, February 25, 2025 at 10:00 a.m. (ET) to
discuss our Fourth Quarter and Full Year 2024 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. A slide presentation, which includes
supplemental information relating to the Company's fourth quarter
earnings will be made available through the "Presentations &
Events" section of the Company's Investor Relations website at
https://ir.sealedair.com/events-and-presentations prior to the
call.
About Sealed Air
Sealed Air Corporation (NYSE: SEE), is a leading global provider
of packaging solutions that integrate sustainable, high-performance
materials, automation, equipment and services. Sealed Air designs,
manufactures and delivers packaging solutions that preserve food,
protect goods and automate packaging processes. We deliver our
packaging solutions to an array of end markets including fresh
proteins, foods, fluids and liquids, medical and life science,
e-commerce retail, logistics and omnichannel fulfillment
operations, and industrials. Our globally recognized solution
brands include CRYOVAC® brand food packaging,
LIQUIBOX® brand liquids systems, SEALED
AIR® brand protective packaging,
AUTOBAG® brand automated packaging systems, and
BUBBLE WRAP® brand packaging. In 2024, Sealed Air
generated $5.4 billion in sales and
has approximately 16,400 employees who serve customers in
117 countries/territories.
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-GAAP Information
In this press release, we include certain non-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, Adjusted EBITDA Margin, net leverage
ratio and Adjusted Tax Rate. Management uses non-GAAP financial
measures to assess operating and financial performance, set
budgets, provide guidance and compare with peers' performance. We
believe such non-GAAP financial measures are useful to investors.
Non-GAAP financial measures should not be considered in isolation
from or as a substitute for GAAP information. See the attached
supplementary information for reconciliations of non-GAAP financial
measures to their most directly comparable GAAP financial measures.
Information reconciling forward-looking non-GAAP financial measures
to their most directly comparable GAAP financial measures is not
presented because it is not available without unreasonable effort.
The reconciling information that is not available includes
forward-looking ranges of certain Special Items with high
variability, complexity and low visibility. We are unable to
address the probable significance of such unavailable information,
which could have a potential significant impact on our future GAAP
financial results.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by such words as
"anticipate," "believe," "plan," "assume," "could," "should,"
"estimate," "expect," "intend," "potential," "seek," "predict,"
"may," "will" or the negative of these terms and similar
expressions. All statements contained in this press release, other
than statements of historical facts, such as those regarding our
growth initiatives, business strategies, operating plans, business
outlook, restructuring activities and market conditions, are
forward-looking statements. These statements are neither promises
nor guarantees, but involve known and unknown risks and
uncertainties that may cause our actual results to differ
materially from any future results expressed or implied by the
forward-looking statements. These risks include important factors
discussed in the "Risk Factors" section in Part I of our most
recent Annual Report on Form 10-K, as updated by our other filings
with the Securities and Exchange Commission.
Any forward-looking statements made by us in this press release
are based solely on management's estimates as of the date of this
press release. While we may elect to update such forward-looking
statements, we disclaim any obligation to do so even if subsequent
events cause our views to change, except as may be required by
applicable law.
|
Company
Contacts
|
|
|
Investors
|
|
Mark Stone
|
|
mark.stone@sealedair.com
|
|
919.673.3218
|
|
|
Louise
Lagache
|
|
louise.lagache@sealedair.com
|
|
|
Media
|
|
Amanda
Hoggarth
|
|
amanda.hoggarth@sealedair.com
|
|
The supplementary information included in this press release for
2024 is preliminary and subject to change prior to the filing of
our upcoming Annual Report on Form 10-K with the Securities and
Exchange Commission.
|
Sealed Air
Corporation
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD
millions, except per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
|
$
1,372.8
|
|
$
1,377.5
|
|
$
5,392.6
|
|
$
5,488.9
|
|
Cost of
sales
|
|
966.0
|
|
972.6
|
|
3,767.5
|
|
3,847.6
|
|
Gross
profit
|
|
406.8
|
|
404.9
|
|
1,625.1
|
|
1,641.3
|
|
Selling, general and
administrative expenses
|
|
188.8
|
|
176.5
|
|
752.6
|
|
759.1
|
|
(Loss) Gain on disposal
and sale of businesses and property and
equipment, net
|
|
(10.4)
|
|
5.9
|
|
(16.2)
|
|
(49.3)
|
|
Amortization expense of
intangible assets
|
|
15.6
|
|
16.7
|
|
62.6
|
|
62.7
|
|
Restructuring
charges
|
|
33.0
|
|
6.4
|
|
57.8
|
|
15.6
|
|
Operating
profit
|
|
159.0
|
|
211.2
|
|
735.9
|
|
754.6
|
|
Interest expense,
net
|
|
(58.7)
|
|
(66.4)
|
|
(247.6)
|
|
(263.0)
|
|
Other expense,
net
|
|
(15.9)
|
|
(28.9)
|
|
(29.9)
|
|
(61.9)
|
|
Earnings before income
tax provision
|
|
84.4
|
|
115.9
|
|
458.4
|
|
429.7
|
|
Income tax
provision
|
|
84.8
|
|
(9.0)
|
|
188.9
|
|
90.4
|
|
Net (loss) earnings
from continuing operations
|
|
(0.4)
|
|
124.9
|
|
269.5
|
|
339.3
|
|
(Loss) Gain on sale of
discontinued operations, net of tax
|
|
(6.9)
|
|
(0.9)
|
|
(4.8)
|
|
2.3
|
|
Net (loss)
earnings
|
|
$
(7.3)
|
|
$
124.0
|
|
$
264.7
|
|
$
341.6
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
—
|
|
$
0.86
|
|
$
1.85
|
|
$
2.35
|
|
Discontinued
operations
|
|
(0.05)
|
|
—
|
|
(0.03)
|
|
0.02
|
|
Net (loss) earnings
per common share - basic
|
|
$
(0.05)
|
|
$
0.86
|
|
$
1.82
|
|
$
2.37
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
—
|
|
$
0.86
|
|
$
1.84
|
|
$
2.34
|
|
Discontinued
operations
|
|
(0.05)
|
|
—
|
|
(0.03)
|
|
0.02
|
|
Net (loss) earnings
per common share - diluted
|
|
$
(0.05)
|
|
$
0.86
|
|
$
1.81
|
|
$
2.36
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
145.8
|
|
144.5
|
|
145.5
|
|
144.4
|
|
Diluted
|
|
146.4
|
|
144.9
|
|
146.0
|
|
144.9
|
|
Sealed Air
Corporation
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
(In USD
millions)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
371.8
|
|
$
346.1
|
|
Trade receivables,
net
|
|
443.1
|
|
442.6
|
|
Income tax
receivables
|
|
25.0
|
|
44.9
|
|
Other
receivables
|
|
99.8
|
|
94.2
|
|
Advances and
deposits
|
|
36.1
|
|
72.8
|
|
Inventories,
net
|
|
722.2
|
|
774.3
|
|
Prepaid expenses and
other current assets
|
|
193.8
|
|
188.4
|
|
Total current
assets
|
|
1,891.8
|
|
1,963.3
|
|
Property and equipment,
net
|
|
1,397.9
|
|
1,416.4
|
|
Goodwill
|
|
2,878.5
|
|
2,892.5
|
|
Identifiable intangible
assets, net
|
|
381.6
|
|
439.0
|
|
Deferred
taxes
|
|
112.0
|
|
130.8
|
|
Operating lease
right-of-use-assets
|
|
98.0
|
|
86.5
|
|
Other non-current
assets
|
|
262.3
|
|
272.1
|
|
Total
assets
|
|
$
7,022.1
|
|
$
7,200.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
|
$
140.5
|
|
$
140.7
|
|
Current portion of
long-term debt
|
|
64.6
|
|
35.7
|
|
Current portion of
operating lease liabilities
|
|
29.7
|
|
29.2
|
|
Accounts
payable
|
|
771.0
|
|
764.6
|
|
Accrued restructuring
costs
|
|
42.6
|
|
23.1
|
|
Income tax
payable
|
|
53.3
|
|
28.7
|
|
Other current
liabilities
|
|
533.8
|
|
487.0
|
|
Total current
liabilities
|
|
1,635.5
|
|
1,509.0
|
|
Long-term debt, less
current portion
|
|
4,198.8
|
|
4,513.9
|
|
Long-term operating
lease liabilities, less current portion
|
|
74.8
|
|
66.7
|
|
Deferred
taxes
|
|
26.1
|
|
35.8
|
|
Other non-current
liabilities
|
|
462.4
|
|
525.7
|
|
Total
liabilities
|
|
6,397.6
|
|
6,651.1
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
Common
stock
|
|
15.5
|
|
15.4
|
|
Additional paid-in
capital
|
|
1,445.7
|
|
1,429.5
|
|
Retained
earnings
|
|
643.4
|
|
496.5
|
|
Common stock in
treasury
|
|
(404.2)
|
|
(436.4)
|
|
Accumulated other
comprehensive loss, net of taxes
|
|
(1,075.9)
|
|
(955.5)
|
|
Total stockholders'
equity
|
|
624.5
|
|
549.5
|
|
Total liabilities
and stockholders' equity
|
|
$
7,022.1
|
|
$
7,200.6
|
|
Sealed Air
Corporation
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
Year Ended December
31,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
Net earnings
|
|
$
264.7
|
|
$
341.6
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities(1)
|
|
349.8
|
|
376.3
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Trade receivables,
net
|
|
(34.1)
|
|
73.4
|
|
Inventories
|
|
(4.3)
|
|
136.0
|
|
Income tax
receivable/payable
|
|
45.6
|
|
(0.4)
|
|
Accounts
payable
|
|
28.1
|
|
(122.8)
|
|
Tax refunds /
(payments and deposits) to resolve certain prior years' tax
matters
|
|
54.0
|
|
(195.0)
|
|
Other assets and
liabilities
|
|
24.2
|
|
(92.9)
|
|
Net
cash provided by operating activities
|
|
$
728.0
|
|
$
516.2
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Capital
expenditures
|
|
$
(220.2)
|
|
$
(244.2)
|
|
Proceeds related to
sale of business and property and equipment, net
|
|
1.0
|
|
10.2
|
|
Businesses acquired in
purchase transactions, net of cash acquired
|
|
4.2
|
|
(1,160.7)
|
|
(Payments) / Proceeds
related to debt, equity, and equity method investments,
net
|
|
(1.1)
|
|
2.8
|
|
Proceeds from cross
currency swaps
|
|
3.1
|
|
1.6
|
|
Settlement of foreign
currency forward contracts
|
|
(19.5)
|
|
12.1
|
|
Net cash used in
investing activities
|
|
$
(232.5)
|
|
$
(1,378.2)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net proceeds of
short-term borrowings
|
|
$
5.2
|
|
$
131.6
|
|
Proceeds from
long-term debt
|
|
416.2
|
|
1,833.4
|
|
Payments of long-term
debt
|
|
(710.5)
|
|
(958.4)
|
|
Dividends paid on
common stock
|
|
(118.0)
|
|
(117.9)
|
|
Repurchases of common
stock
|
|
—
|
|
(79.9)
|
|
Payments of debt
modification/extinguishment costs and other
|
|
(7.6)
|
|
(22.3)
|
|
Impact of tax
withholding on share-based compensation
|
|
(9.9)
|
|
(21.8)
|
|
Principal payments
related to financing leases
|
|
(8.2)
|
|
(9.0)
|
|
Net cash (used in)
provided by financing activities
|
|
$
(432.8)
|
|
$
755.7
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
$
(37.0)
|
|
$
(3.7)
|
|
Cash and cash
equivalents
|
|
346.1
|
|
456.1
|
|
Restricted cash and
cash equivalents
|
|
—
|
|
—
|
|
Balance, beginning
of period
|
|
$
346.1
|
|
$
456.1
|
|
Net change during
the period
|
|
25.7
|
|
(110.0)
|
|
Cash and cash
equivalents
|
|
371.8
|
|
346.1
|
|
Restricted cash and
cash equivalents
|
|
—
|
|
—
|
|
Balance, end of
period
|
|
$
371.8
|
|
$
346.1
|
|
|
|
|
|
|
Non-GAAP Free Cash
Flow:
|
|
|
|
|
|
Cash flow from
operating activities
|
|
$
728.0
|
|
$
516.2
|
|
Capital expenditures
for property and equipment
|
|
(220.2)
|
|
(244.2)
|
|
Free Cash
Flow
|
|
$
507.8
|
|
$
272.0
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
Interest payments, net
of amounts capitalized
|
|
$
284.1
|
|
$
265.2
|
|
Income tax payments,
net of cash refunds(2)
|
|
$
109.7
|
|
$
357.7
|
|
Restructuring payments
including associated costs
|
|
$
58.1
|
|
$
19.2
|
|
Non-cash
items:
|
|
|
|
|
|
Transfers of shares of
our common stock from treasury for our profit-sharing plan
contributions
|
|
$
25.4
|
|
$
23.9
|
|
________________________
|
|
(1)
|
2024 primarily
consists of depreciation and amortization of $241 million, share
based compensation expense of $32 million, profit sharing expense
of $26 million, provisions for inventory obsolescence of $19
million, impairment of debt investment of $9 million and loss on
debt redemption and refinancing activities of $7 million, partially
offset by a decrease in deferred taxes of $16 million. 2023
primarily consists of depreciation and amortization of $233
million, net loss associated with the disposal of businesses of $53
million, share based compensation expense of $33 million, profit
sharing expense of $25 million, provisions for inventory
obsolescence of $18 million, and loss on debt redemption and
refinancing activities of $13 million, partially offset by a
decrease in deferred taxes of $28 million.
|
|
|
|
(2)
|
2023 includes $195.0
million of payments and deposits related to the resolution of
certain previous years' tax matters. Excluding the $195.0 million
of payments and deposits, Income tax payments, net of cash refunds
were $162.7 million for the year ended December 31, 2023. 2024
includes a $54.0 million refund from the IRS related to the same
tax matters. Excluding the $54.0 million refund, Income tax
payments, net of cash refunds were $163.7 million for the year
ended December 31, 2024.
|
|
Sealed Air
Corporation
Components of Change
in Net Sales by Segment
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
(In USD
millions)
|
|
Food
|
|
Protective
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$ 892.6
|
|
64.8 %
|
|
$ 484.9
|
|
35.2 %
|
|
$
1,377.5
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
1.6
|
|
0.2 %
|
|
(5.9)
|
|
(1.2) %
|
|
(4.3)
|
|
(0.3) %
|
|
Volume(1)
|
|
43.5
|
|
4.9 %
|
|
(26.3)
|
|
(5.4) %
|
|
17.2
|
|
1.2 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
45.1
|
|
5.1 %
|
|
(32.2)
|
|
(6.6) %
|
|
12.9
|
|
0.9 %
|
|
Foreign currency
translation
|
|
(15.2)
|
|
(1.8) %
|
|
(2.4)
|
|
(0.5) %
|
|
(17.6)
|
|
(1.2) %
|
|
Total change
(GAAP)
|
|
29.9
|
|
3.3 %
|
|
(34.6)
|
|
(7.1) %
|
|
(4.7)
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
922.5
|
|
67.2 %
|
|
$
450.3
|
|
32.8 %
|
|
$
1,372.8
|
|
100.0 %
|
|
|
|
|
Year Ended December
31,
|
|
(In USD
millions)
|
|
Food
|
|
Protective
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$
3,519.7
|
|
64.1 %
|
|
$
1,969.2
|
|
35.9 %
|
|
$
5,488.9
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
(69.5)
|
|
(2.0) %
|
|
(49.3)
|
|
(2.5) %
|
|
(118.8)
|
|
(2.1) %
|
|
Volume(1)
|
|
136.5
|
|
3.9 %
|
|
(101.8)
|
|
(5.2) %
|
|
34.7
|
|
0.6 %
|
|
Total organic change
(non-GAAP)(2)
|
|
67.0
|
|
1.9 %
|
|
(151.1)
|
|
(7.7) %
|
|
(84.1)
|
|
(1.5) %
|
|
Acquisition
|
|
23.5
|
|
0.7 %
|
|
—
|
|
— %
|
|
23.5
|
|
0.4 %
|
|
Total constant dollar
change (non-GAAP)(2)
|
|
90.5
|
|
2.6 %
|
|
(151.1)
|
|
(7.7) %
|
|
(60.6)
|
|
(1.1) %
|
|
Foreign currency
translation
|
|
(27.6)
|
|
(0.8) %
|
|
(8.1)
|
|
(0.4) %
|
|
(35.7)
|
|
(0.7) %
|
|
Total change
(GAAP)
|
|
62.9
|
|
1.8 %
|
|
(159.2)
|
|
(8.1) %
|
|
(96.3)
|
|
(1.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
3,582.6
|
|
66.4 %
|
|
$
1,810.0
|
|
33.6 %
|
|
$
5,392.6
|
|
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 organic change is
a non-GAAP financial measure which excludes acquisitions within the
first twelve months after acquisition, divestiture activity from
the time of the sale, and the impact of foreign currency
translation. Total constant dollar change is a non-GAAP financial
measure which excludes the impact of foreign currency
translation.
|
|
Sealed Air
Corporation
Components of Change
in Net Sales by Region
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
(In USD
millions)
|
|
Americas
|
|
EMEA
|
|
APAC
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$
882.7
|
|
64.1 %
|
|
$
285.4
|
|
20.7 %
|
|
$
209.4
|
|
15.2 %
|
|
$ 1,377.5
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
0.1
|
|
— %
|
|
(2.9)
|
|
(1.0) %
|
|
(1.5)
|
|
(0.7) %
|
|
(4.3)
|
|
(0.3) %
|
|
Volume(1)
|
|
7.2
|
|
0.8 %
|
|
6.6
|
|
2.3 %
|
|
3.4
|
|
1.6 %
|
|
17.2
|
|
1.2 %
|
|
Total constant
dollar
change (non-GAAP)(2)
|
|
7.3
|
|
0.8 %
|
|
3.7
|
|
1.3 %
|
|
1.9
|
|
0.9 %
|
|
12.9
|
|
0.9 %
|
|
Foreign currency
translation
|
|
(14.5)
|
|
(1.6) %
|
|
(1.6)
|
|
(0.6) %
|
|
(1.5)
|
|
(0.7) %
|
|
(17.6)
|
|
(1.2) %
|
|
Total change
(GAAP)
|
|
(7.2)
|
|
(0.8) %
|
|
2.1
|
|
0.7 %
|
|
0.4
|
|
0.2 %
|
|
(4.7)
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
875.5
|
|
63.8 %
|
|
$
287.5
|
|
20.9 %
|
|
$
209.8
|
|
15.3 %
|
|
$
1,372.8
|
|
100.0 %
|
|
|
|
|
Year Ended December
31,
|
|
(In USD
millions)
|
|
Americas
|
|
EMEA
|
|
APAC
|
|
Total
Company
|
|
2023 Net
Sales
|
|
$ 3,578.3
|
|
65.2 %
|
|
$ 1,149.3
|
|
20.9 %
|
|
$
761.3
|
|
13.9 %
|
|
$ 5,488.9
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
(76.1)
|
|
(2.1) %
|
|
(36.4)
|
|
(3.2) %
|
|
(6.3)
|
|
(0.8) %
|
|
(118.8)
|
|
(2.1) %
|
|
Volume(1)
|
|
27.8
|
|
0.8 %
|
|
(9.1)
|
|
(0.8) %
|
|
16.0
|
|
2.1 %
|
|
34.7
|
|
0.6 %
|
|
Total organic change
(non-
GAAP)(2)
|
|
(48.3)
|
|
(1.3) %
|
|
(45.5)
|
|
(4.0) %
|
|
9.7
|
|
1.3 %
|
|
(84.1)
|
|
(1.5) %
|
|
Acquisition
|
|
17.2
|
|
0.4 %
|
|
4.0
|
|
0.4 %
|
|
2.3
|
|
0.3 %
|
|
23.5
|
|
0.4 %
|
|
Total constant
dollar
change (non-GAAP)(2)
|
|
(31.1)
|
|
(0.9) %
|
|
(41.5)
|
|
(3.6) %
|
|
12.0
|
|
1.6 %
|
|
(60.6)
|
|
(1.1) %
|
|
Foreign currency
translation
|
|
(21.1)
|
|
(0.6) %
|
|
0.1
|
|
— %
|
|
(14.7)
|
|
(2.0) %
|
|
(35.7)
|
|
(0.7) %
|
|
Total change
(GAAP)
|
|
(52.2)
|
|
(1.5) %
|
|
(41.4)
|
|
(3.6) %
|
|
(2.7)
|
|
(0.4) %
|
|
(96.3)
|
|
(1.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Net
Sales
|
|
$
3,526.1
|
|
65.4 %
|
|
$
1,107.9
|
|
20.5 %
|
|
$
758.6
|
|
14.1 %
|
|
$
5,392.6
|
|
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 organic change is
a non-GAAP financial measure which excludes acquisitions within the
first twelve months after acquisition, divestiture activity from
the time of the sale, and the impact of foreign currency
translation. Total constant dollar change is a non-GAAP financial
measure which excludes the impact of foreign currency
translation.
|
|
Sealed Air
Corporation
Segment
Information
Reconciliation of
Net Earnings to Non-GAAP Consolidated Adjusted
EBITDA
(Unaudited)
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Adjusted EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Food
|
|
$
207.6
|
|
$
194.9
|
|
$
807.7
|
|
$
775.0
|
|
Adjusted EBITDA
Margin
|
|
22.5 %
|
|
21.8 %
|
|
22.5 %
|
|
22.0 %
|
|
Protective
|
|
66.7
|
|
90.5
|
|
313.5
|
|
361.8
|
|
Adjusted EBITDA
Margin
|
|
14.8 %
|
|
18.7 %
|
|
17.3 %
|
|
18.4 %
|
|
Corporate
|
|
(3.5)
|
|
(11.1)
|
|
(10.6)
|
|
(30.2)
|
|
Non-GAAP
Consolidated Adjusted EBITDA
|
|
$
270.8
|
|
$
274.3
|
|
$
1,110.6
|
|
$
1,106.6
|
|
Adjusted EBITDA
Margin
|
|
19.7 %
|
|
19.9 %
|
|
20.6 %
|
|
20.2 %
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP Net earnings
from continuing operations
|
|
$ (0.4)
|
|
$
124.9
|
|
$
269.5
|
|
$
339.3
|
|
Interest expense,
net
|
|
58.7
|
|
66.4
|
|
247.6
|
|
263.0
|
|
Income tax
provision
|
|
84.8
|
|
(9.0)
|
|
188.9
|
|
90.4
|
|
Depreciation and
amortization, net of adjustments(1)
|
|
59.5
|
|
52.5
|
|
243.7
|
|
239.6
|
|
Special
Items:
|
|
|
|
|
|
|
|
|
|
Liquibox intangible
amortization
|
|
7.6
|
|
8.0
|
|
30.3
|
|
27.9
|
|
Liquibox inventory
step-up amortization
|
|
—
|
|
(0.6)
|
|
—
|
|
10.2
|
|
Restructuring
charges
|
|
33.0
|
|
6.4
|
|
57.8
|
|
15.6
|
|
Other restructuring
associated costs
|
|
8.1
|
|
—
|
|
30.3
|
|
34.5
|
|
Foreign currency
exchange loss due to highly inflationary
economies
|
|
2.0
|
|
12.5
|
|
9.9
|
|
23.1
|
|
Loss on debt
redemption and refinancing activities
|
|
—
|
|
8.3
|
|
6.8
|
|
13.2
|
|
Impairment of debt
investment
|
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
Contract
terminations
|
|
—
|
|
(0.7)
|
|
(0.1)
|
|
14.6
|
|
Charges related to
acquisition and divestiture activity
|
|
1.0
|
|
3.8
|
|
4.2
|
|
28.3
|
|
CEO
severance
|
|
—
|
|
6.1
|
|
—
|
|
6.1
|
|
Other Special
Items
|
|
8.0
|
|
(4.3)
|
|
13.2
|
|
0.8
|
|
Pre-tax impact of
Special Items
|
|
68.2
|
|
39.5
|
|
160.9
|
|
174.3
|
|
Non-GAAP
Consolidated Adjusted EBITDA
|
|
$
270.8
|
|
$
274.3
|
|
$
1,110.6
|
|
$
1,106.6
|
|
__________________________
|
|
(1)
|
Depreciation and
amortization by segment are as follows:
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Food
|
|
$
45.0
|
|
$
39.9
|
|
$
186.1
|
|
$
175.7
|
|
Protective
|
|
22.1
|
|
20.6
|
|
87.9
|
|
91.8
|
|
Consolidated
depreciation and amortization(i)
|
|
$
67.1
|
|
$
60.5
|
|
$
274.0
|
|
$
267.5
|
|
Liquibox intangible
amortization
|
|
(7.6)
|
|
(8.0)
|
|
(30.3)
|
|
(27.9)
|
|
Depreciation and
amortization, net of adjustments
|
|
$
59.5
|
|
$
52.5
|
|
$
243.7
|
|
$
239.6
|
|
__________________________
|
|
(i)
|
Includes share-based
incentive compensation of $8.6 million and $33.0 million for the
three months and year ended December 31, 2024, respectively,
and $1.9 million and $34.2 million for the three months and year
ended December 31, 2023, respectively.
|
The calculation of the non-GAAP Adjusted income tax rate is as
follows:
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD
millions)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP Earnings before
income tax provision from
continuing operations
|
|
$
84.4
|
|
$ 115.9
|
|
$ 458.4
|
|
$ 429.7
|
|
Pre-tax impact of
Special Items
|
|
68.2
|
|
39.5
|
|
160.9
|
|
174.3
|
|
Non-GAAP Adjusted
Earnings before income tax
provision from continuing operations
|
|
$ 152.6
|
|
$ 155.4
|
|
$ 619.3
|
|
$ 604.0
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax
provision from continuing
operations
|
|
$
84.8
|
|
$
(9.0)
|
|
$ 188.9
|
|
$
90.4
|
|
Tax Special
Items(1)
|
|
(56.1)
|
|
30.6
|
|
(64.7)
|
|
20.0
|
|
Tax impact of Special
Items
|
|
14.2
|
|
6.4
|
|
36.2
|
|
32.3
|
|
Non-GAAP Adjusted
Income tax provision from
continuing operations
|
|
$
42.9
|
|
$
28.0
|
|
$ 160.4
|
|
$ 142.7
|
|
|
|
|
|
|
|
|
|
|
GAAP Effective income
tax rate
|
|
100.5 %
|
|
(7.8) %
|
|
41.2 %
|
|
21.0 %
|
|
Non-GAAP Adjusted
income tax rate
|
|
28.1 %
|
|
18.0 %
|
|
25.9 %
|
|
23.6 %
|
|
__________________________
|
|
(1)
|
For the year ended
December 31, 2024, Tax Special Items reflect the write-off of
a deferred tax asset associated with a legal entity restructuring
and accruals for uncertain tax positions. For the year ended
December 31, 2023, Tax Special Items reflect adjustments
related to the settlement of the IRS audit partially offset by
accruals for uncertain tax positions.
|
|
Sealed Air
Corporation
Reconciliation of
Net Earnings and Net Earnings Per Common Share to Non-GAAP
Adjusted
Net Earnings and
Non-GAAP Adjusted Net Earnings Per Common Share
(Unaudited)
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(In USD millions,
except per share data)
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
GAAP net earnings
and diluted EPS
from continuing operations
|
|
$
(0.4)
|
|
$ —
|
|
$
124.9
|
|
$
0.86
|
|
$
269.5
|
|
$
1.84
|
|
$
339.3
|
|
$
2.34
|
|
Special
Items(1)
|
|
110.1
|
|
0.75
|
|
2.5
|
|
0.02
|
|
189.4
|
|
1.30
|
|
122.0
|
|
0.84
|
|
Non-GAAP adjusted
net earnings and
adjusted diluted EPS
|
|
$
109.7
|
|
$
0.75
|
|
$
127.4
|
|
$
0.88
|
|
$
458.9
|
|
$
3.14
|
|
$
461.3
|
|
$
3.18
|
|
Weighted average
number of common
shares outstanding - Diluted
|
|
|
|
146.4
|
|
|
|
144.9
|
|
|
|
146.0
|
|
|
|
144.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________________
|
|
(1)
|
Special Items include
items in the table below.
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In USD millions,
except per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Special
Items:
|
|
|
|
|
|
|
|
|
|
Liquibox intangible
amortization
|
|
$
7.6
|
|
$
8.0
|
|
$
30.3
|
|
$
27.9
|
|
Liquibox inventory
step-up amortization
|
|
—
|
|
(0.6)
|
|
—
|
|
10.2
|
|
Restructuring
charges
|
|
33.0
|
|
6.4
|
|
57.8
|
|
15.6
|
|
Other restructuring
associated costs
|
|
8.1
|
|
—
|
|
30.3
|
|
34.5
|
|
Foreign currency
exchange loss due to highly inflationary
economies
|
|
2.0
|
|
12.5
|
|
9.9
|
|
23.1
|
|
Loss on debt
redemption and refinancing activities
|
|
—
|
|
8.3
|
|
6.8
|
|
13.2
|
|
Impairment of debt
investment
|
|
8.5
|
|
—
|
|
8.5
|
|
—
|
|
Contract
terminations
|
|
—
|
|
(0.7)
|
|
(0.1)
|
|
14.6
|
|
Charges related to
acquisition and divestiture activity
|
|
1.0
|
|
3.8
|
|
4.2
|
|
28.3
|
|
CEO
severance
|
|
—
|
|
6.1
|
|
—
|
|
6.1
|
|
Other Special
Items
|
|
8.0
|
|
(4.3)
|
|
13.2
|
|
0.8
|
|
Pre-tax impact of
Special Items
|
|
68.2
|
|
39.5
|
|
160.9
|
|
174.3
|
|
Tax impact of Special
Items and Tax Special Items
|
|
41.9
|
|
(37.0)
|
|
28.5
|
|
(52.3)
|
|
Net impact of
Special Items
|
|
$
110.1
|
|
$
2.5
|
|
$
189.4
|
|
$
122.0
|
|
Weighted average
number of common shares
outstanding - Diluted
|
|
146.4
|
|
144.9
|
|
146.0
|
|
144.9
|
|
Loss per share
impact from Special Items
|
|
$
(0.75)
|
|
$
(0.02)
|
|
$
(1.30)
|
|
$
(0.84)
|
|
Calculation of Net
Debt
(Unaudited)
|
|
|
(In USD
millions)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Short-term
borrowings
|
|
$
140.5
|
|
$
140.7
|
|
Current portion of
long-term debt
|
|
64.6
|
|
35.7
|
|
Long-term debt, less
current portion
|
|
4,198.8
|
|
4,513.9
|
|
Total debt
|
|
4,403.9
|
|
4,690.3
|
|
Less: cash and cash
equivalents
|
|
(371.8)
|
|
(346.1)
|
|
Non-GAAP Net
debt
|
|
$
4,032.1
|
|
$
4,344.2
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Debt / Adjusted EBITDA)
|
|
3.6x
|
|
3.9x
|
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SOURCE Sealed Air