Fourth Quarter 2023 Financial Highlights:
- Total Net Revenues of
$1,274 million for the fourth quarter of 2023 were down 14% compared to$1,476 million in the fourth quarter of 2022 and down 8% compared to$1,379 million in the third quarter of 2023. - Net Income from continuing operations of
$22 million for the fourth quarter of 2023 compared to$27 million in the fourth quarter of 2022 and$28 million in the third quarter of 2023. - Adjusted EBITDA1 of
$207 million for the fourth quarter of 2023 compared to$167 million in the fourth quarter of 2022 and$227 million in the third quarter of 2023. - Diluted earnings per share from continuing operations of
$0.12 for the fourth quarter of 2023 compared to$0.15 in the fourth quarter of 2022 and$0.15 in the third quarter of 2023. - Adjusted EPS1 of
$0.33 for the fourth quarter of 2023 compared to$0.17 in the fourth quarter of 2022 and$0.32 in the third quarter of 2023.
Full Year 2023 Financial Highlights:
- Total Net Revenues of
$5,510 million for the year endedDecember 31, 2023 were down 11% compared to$6,220 million in the prior year. - Net Loss from continuing operations of
$222 million for the year endedDecember 31, 2023 compared to net income from continuing operations of$319 million in the prior year. - Adjusted EBITDA1 of
$840 million for the year endedDecember 31, 2023 compared to$785 million in the prior year. - Diluted loss per share from continuing operations of
$1.28 for the year endedDecember 31, 2023 compared to diluted earnings per share of$1.77 in the prior year. - Adjusted EPS1 of
$0.96 for the year endedDecember 31, 2023 compared to$0.81 in the prior year.
1 Adjusted EBITDA and Adjusted EPS are non-GAAP measures. All references to Adjusted EBITDA and Adjusted EPS are references to Adjusted EBITDA from continuing operations and Adjusted EPS from continuing operations, respectively. Refer to their definitions in the discussion on non-GAAP financial measures and the accompanying reconciliations below.
Footprint Optimization
On
Beverage Merchandising Restructuring Update
On
For the year ended
These charges include certain estimates that are provisional and include significant management judgments and assumptions that could change materially as the Company completes the execution of its plan. Actual results may differ from these estimates, and the completion of the plan could result in additional restructuring charges or impairments not reflected above.
Fourth Quarter 2023 Results vs. Fourth Quarter 2022 Results
Total net revenues in the fourth quarter of 2023 were
Net income from continuing operations was
Adjusted EBITDA1 was
Segment Results
Foodservice
For the Three Months Ended | Components of Change in Net Revenues | |||||||||||||||||||||||
(In millions, except for %) | 2023 | 2022 | Change | Change % | Price/Mix | Volume | ||||||||||||||||||
Total segment net revenues | $ | 626 | $ | 633 | $ | (7 | ) | (1 | )% | (4 | )% | 3 | % | |||||||||||
Segment Adjusted EBITDA | $ | 112 | $ | 85 | $ | 27 | 32 | % | ||||||||||||||||
Segment Adjusted EBITDA margin(2) | 18 | % | 13 | % |
(2) For each segment, segment Adjusted EBITDA margin is calculated as segment Adjusted EBITDA divided by total segment net revenues.
The decrease in net revenues was mostly due to unfavorable pricing, largely driven by lower material costs, partially offset by higher sales volume.
The increase in Adjusted EBITDA was mainly due to lower material costs, net of costs passed through, higher sales volume and lower transportation costs, partially offset by higher manufacturing costs.
Food and Beverage Merchandising
For the Three Months Ended | Components of Change in Net Revenues | |||||||||||||||||||||||||||||||
(In millions, except for %) | 2023 | 2022 | Change | Change % | Price/Mix | Volume | Mill Closure | FX | ||||||||||||||||||||||||
Total segment net revenues | $ | 653 | $ | 872 | $ | (219 | ) | (25 | )% | (4 | )% | (7 | )% | (15 | )% | 1 | % | |||||||||||||||
Segment Adjusted EBITDA | $ | 113 | $ | 109 | $ | 4 | 4 | % | ||||||||||||||||||||||||
Segment Adjusted EBITDA margin | 17 | % | 13 | % |
The decrease in net revenues was driven by the closure of our
The increase in Adjusted EBITDA was due to lower material costs, net of costs passed through, and lower transportation costs, partially offset by lower sales volume, the closure of our
Fourth Quarter 2023 Results vs. Third Quarter 2023 Results
Net revenues in the fourth quarter of 2023 were
Net income from continuing operations was
Adjusted EBITDA1 was
Segment Results
Foodservice
For the Three Months Ended | Components of Change in Net Revenues | |||||||||||||||||||||||
(In millions, except for %) | 2023 | 2023 | Change | Change % | Price/Mix | Volume | ||||||||||||||||||
Total segment net revenues | $ | 626 | $ | 675 | $ | (49 | ) | (7 | )% | — | % | (7 | )% | |||||||||||
Segment Adjusted EBITDA | $ | 112 | $ | 117 | $ | (5 | ) | (4 | )% | |||||||||||||||
Segment Adjusted EBITDA margin | 18 | % | 17 | % |
The decrease in net revenues was largely due to lower sales volume which was attributable to seasonal trends.
The decrease in Adjusted EBITDA was due to lower sales volume and higher manufacturing costs, partially offset by lower material costs, net of costs passed through.
Food and Beverage Merchandising
For the Three Months Ended | Components of Change in Net Revenues | |||||||||||||||||||||||
(In millions, except for %) | 2023 | 2023 | Change | Change % | Price/Mix | Volume | ||||||||||||||||||
Total segment net revenues | $ | 653 | $ | 712 | $ | (59 | ) | (8 | )% | (1 | )% | (7 | )% | |||||||||||
Segment Adjusted EBITDA | $ | 113 | $ | 130 | $ | (17 | ) | (13 | )% | |||||||||||||||
Segment Adjusted EBITDA margin | 17 | % | 18 | % |
The decrease in net revenues was mostly due to lower sales volume which was mainly attributable to a focus on value over volume.
The decrease in Adjusted EBITDA was due to lower sales volume and higher manufacturing costs, partially offset by lower material costs, net of costs passed through.
Balance Sheet and Cash Flow Highlights
The Company continues to deliver on its commitment to strengthen its balance sheet. Since
(In millions) | As of | (In millions) | For the Three Months Ended | |||||||
Total outstanding debt | $ | 3,586 | Net cash flow provided by operating activities | $ | 81 | |||||
Cash and cash equivalents | (164 | ) | Capital expenditures | (107 | ) | |||||
Net Debt3 | $ | 3,422 | Free Cash Flow3 | $ | (26 | ) |
3 Net Debt and Free Cash Flow are non-GAAP measures. Refer to their definitions in the discussion on non-GAAP financial measures below.
Outlook
“I am extremely proud of the Company’s performance and the positive momentum our team generated in 2023. Looking ahead to 2024, we intend to make further progress on the Company’s transformational journey by continuing to focus on operational excellence and executing on our footprint optimization plan. With that backdrop, the Company is providing 2024 Adjusted EBITDA1 guidance in the range of
The Company has not reconciled the non-GAAP measure Adjusted EBITDA1 to the GAAP measure net income (loss) on a forward-looking basis in this release because the Company does not provide guidance for certain of the reconciling items on a consistent basis, including but not limited to items relating to restructuring, asset impairment and other related charges, depreciation and amortization expense, net interest expense and income taxes, which would be required to include a reconciliation of Adjusted EBITDA1 to GAAP net income (loss), as the Company is unable to quantify these amounts without unreasonable efforts.
Conference Call and Webcast Presentation
The Company will host a conference call and webcast presentation to discuss these results on
About
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 and operational results and growth prospects, our ability to navigate macroeconomic volatility and the expected timelines and amount and type of cash and non-cash charges that we expect to incur in connection with the Footprint Optimization and the Beverage Merchandising Restructuring and the timing thereof. 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
Use of Non-GAAP Financial Measures
The Company uses the following financial measures that are not calculated in accordance with generally accepted accounting principles in
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 or losses on the sale of businesses and noncurrent assets, non-cash pension income or expense, operational process engineering-related consultancy costs, business acquisition and integration costs and purchase accounting adjustments, unrealized gains or losses on derivatives, foreign exchange gains or losses on cash and gains or losses on certain legal settlements.
The Company defines Adjusted EPS as diluted (loss) earnings per share (“EPS”) from continuing operations calculated in accordance with GAAP adjusted for the after-tax effect of 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 or expense, 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 gains or losses on certain legal settlements.
The Company defines Free Cash Flow as net cash provided by operating activities, less capital expenditures.
The Company defines Net Debt as the sum of current and long-term debt, less cash and cash equivalents.
The Company has provided herein a reconciliation of (i) net income (loss) from continuing operations to Adjusted EBITDA, (ii) diluted EPS from continuing operations to Adjusted EPS, (iii) net cash provided by operating activities to Free Cash Flow and (iv) total debt to Net Debt, in each case representing the most directly comparable GAAP financial measures.
The Company presents Adjusted EBITDA to assist in comparing performance from period to period and as a measure of operational performance. It is a key measure used by its management team to generate future operating plans, make strategic decisions and incentivize and reward its employees. In addition, its management and Chief Operating Decision Maker, who is the President and Chief Executive Officer, use the Adjusted EBITDA of each reportable segment to evaluate its respective operating performance. Accordingly, the Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating the Company’s operating results in the same manner as its management and Board of Directors. Like Adjusted EBITDA, management believes Adjusted EPS is useful to investors, analysts and others to facilitate operating performance comparisons on a period-to-period basis because it excludes variations primarily caused by changes in the items noted above.
The Company presents Free Cash Flow to assist in comparing liquidity from period to period and to provide a more comprehensive view of the Company’s core operations and ability to generate cash flow, and also, as with Adjusted EBITDA, to generate future operating plans, make strategic decisions and incentivize and reward its employees. The Company believes that this measure is useful to investors in evaluating cash available to service and repay debt, make other investments and pay dividends. The Company presents Net Debt as a supplemental measure to review the liquidity of its operations and measure the Company’s credit position and progress toward leverage targets. The Company also believes that investors find this measure useful in evaluating its debt levels.
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 non-GAAP metrics 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 them alongside other financial performance measures, including our net income and other GAAP results. In addition, in evaluating Adjusted EBITDA, Adjusted EPS and other metrics derived from them, 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 Adjusted EPS and you should not infer from our presentation of Adjusted EBITDA and Adjusted EPS that our future results will not be affected by these expenses or any unusual or non-recurring items.
Contact:
847.482.2040
InvestorRelations@pactivevergreen.com
Condensed Consolidated Statements of Income (Loss) (in millions, except per share amounts) (unaudited) | ||||||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Net revenues | $ | 1,184 | $ | 1,286 | $ | 1,364 | $ | 5,124 | $ | 5,783 | ||||||||||
Related party net revenues | 90 | 93 | 112 | 386 | 437 | |||||||||||||||
Total net revenues | 1,274 | 1,379 | 1,476 | 5,510 | 6,220 | |||||||||||||||
Cost of sales | (1,021 | ) | (1,098 | ) | (1,251 | ) | (4,777 | ) | (5,223 | ) | ||||||||||
Gross profit | 253 | 281 | 225 | 733 | 997 | |||||||||||||||
Selling, general and administrative expenses | (133 | ) | (137 | ) | (148 | ) | (536 | ) | (583 | ) | ||||||||||
Restructuring, asset impairment and other related charges | (38 | ) | (28 | ) | — | (171 | ) | (58 | ) | |||||||||||
Other income (expense), net | 1 | (3 | ) | 2 | 2 | 281 | ||||||||||||||
Operating income from continuing operations | 83 | 113 | 79 | 28 | 637 | |||||||||||||||
Non-operating (expense) income, net | (2 | ) | (2 | ) | (3 | ) | (8 | ) | 49 | |||||||||||
Interest expense, net | (57 | ) | (61 | ) | (60 | ) | (245 | ) | (218 | ) | ||||||||||
Income (loss) from continuing operations before tax | 24 | 50 | 16 | (225 | ) | 468 | ||||||||||||||
Income tax (expense) benefit | (2 | ) | (22 | ) | 11 | 3 | (149 | ) | ||||||||||||
Income (loss) from continuing operations | 22 | 28 | 27 | (222 | ) | 319 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | 2 | — | 2 | 1 | |||||||||||||||
Net income (loss) | 22 | 30 | 27 | (220 | ) | 320 | ||||||||||||||
Income attributable to non-controlling interests | (1 | ) | (1 | ) | (1 | ) | (3 | ) | (2 | ) | ||||||||||
Net income (loss) attributable to | $ | 21 | $ | 29 | $ | 26 | $ | (223 | ) | $ | 318 | |||||||||
Earnings (loss) per share attributable to | ||||||||||||||||||||
From continuing operations | ||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.15 | $ | 0.15 | $ | (1.28 | ) | $ | 1.77 | |||||||||
Diluted | $ | 0.12 | $ | 0.15 | $ | 0.15 | $ | (1.28 | ) | $ | 1.77 | |||||||||
From discontinued operations | ||||||||||||||||||||
Basic | $ | — | $ | 0.01 | $ | — | $ | 0.02 | $ | 0.01 | ||||||||||
Diluted | $ | — | $ | 0.01 | $ | — | $ | 0.02 | $ | — | ||||||||||
Total | ||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.16 | $ | 0.15 | $ | (1.26 | ) | $ | 1.78 | |||||||||
Diluted | $ | 0.12 | $ | 0.16 | $ | 0.15 | $ | (1.26 | ) | $ | 1.77 | |||||||||
Weighted-average shares outstanding - basic | 179.1 | 178.7 | 178.2 | 178.7 | 177.8 | |||||||||||||||
Weighted-average shares outstanding - diluted | 180.0 | 179.7 | 179.0 | 178.7 | 178.4 |
Condensed Consolidated Balance Sheets (in millions) (unaudited) | ||||||||||||
As of 2023 | As of 2023 | As of 2022 | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 164 | $ | 233 | $ | 531 | ||||||
Accounts receivable, net | 426 | 470 | 448 | |||||||||
Related party receivables | 35 | 38 | 46 | |||||||||
Inventories | 852 | 846 | 1,062 | |||||||||
Other current assets | 112 | 116 | 132 | |||||||||
Total current assets | 1,589 | 1,703 | 2,219 | |||||||||
Property, plant and equipment, net | 1,511 | 1,469 | 1,773 | |||||||||
Operating lease right-of-use assets, net | 263 | 276 | 262 | |||||||||
1,815 | 1,815 | 1,815 | ||||||||||
Intangible assets, net | 1,004 | 1,019 | 1,064 | |||||||||
Other noncurrent assets | 213 | 164 | 173 | |||||||||
Total assets | 6,395 | 6,446 | 7,306 | |||||||||
Liabilities | ||||||||||||
Accounts payable | $ | 300 | $ | 329 | $ | 388 | ||||||
Related party payables | 7 | 10 | 6 | |||||||||
Current portion of long-term debt | 15 | 18 | 31 | |||||||||
Current portion of operating lease liabilities | 64 | 63 | 65 | |||||||||
Income taxes payable | 11 | 5 | 6 | |||||||||
Accrued and other current liabilities | 399 | 447 | 418 | |||||||||
Total current liabilities | 796 | 872 | 914 | |||||||||
Long-term debt | 3,571 | 3,593 | 4,105 | |||||||||
Long-term operating lease liabilities | 217 | 225 | 209 | |||||||||
Deferred income taxes | 244 | 255 | 319 | |||||||||
Long-term employee benefit obligations | 57 | 59 | 60 | |||||||||
Other noncurrent liabilities | 161 | 138 | 146 | |||||||||
Total liabilities | $ | 5,046 | $ | 5,142 | $ | 5,753 | ||||||
Total equity attributable to | 1,345 | 1,300 | 1,548 | |||||||||
Non-controlling interests | 4 | 4 | 5 | |||||||||
Total equity | 1,349 | 1,304 | 1,553 | |||||||||
Total liabilities and equity | $ | 6,395 | $ | 6,446 | $ | 7,306 |
Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income (loss) | $ | 22 | $ | 30 | $ | (139 | ) | $ | (133 | ) | $ | 27 | ||||||||
Adjustments to reconcile net income (loss) to operating cash flows: | ||||||||||||||||||||
Depreciation and amortization | 82 | 85 | 259 | 174 | 84 | |||||||||||||||
Deferred income taxes | (26 | ) | — | (28 | ) | (39 | ) | (14 | ) | |||||||||||
Unrealized losses (gains) on derivatives | 1 | (1 | ) | (1 | ) | 2 | — | |||||||||||||
Asset impairment and restructuring related non-cash charges (net of reversals) | 12 | 3 | 9 | 32 | — | |||||||||||||||
Gain on sale of businesses and noncurrent assets | 1 | — | 1 | — | — | |||||||||||||||
Non-cash portion of employee benefit obligations | 1 | 3 | 3 | 1 | 3 | |||||||||||||||
Non-cash portion of operating lease expense | 20 | 20 | 19 | 21 | 20 | |||||||||||||||
Other non-cash items, net | 9 | 11 | 10 | 6 | 8 | |||||||||||||||
Change in assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | 51 | (3 | ) | 46 | (53 | ) | 79 | |||||||||||||
Inventories | (7 | ) | 75 | 47 | 61 | 58 | ||||||||||||||
Accounts payable | (28 | ) | (15 | ) | (38 | ) | 11 | (45 | ) | |||||||||||
Operating lease payments | (20 | ) | (19 | ) | (20 | ) | (21 | ) | (20 | ) | ||||||||||
Accrued and other current liabilities | (52 | ) | 43 | (28 | ) | 10 | (21 | ) | ||||||||||||
Other assets and liabilities | 15 | 6 | (13 | ) | 16 | (6 | ) | |||||||||||||
Net cash provided by operating activities | 81 | 238 | 127 | 88 | 173 | |||||||||||||||
Investing Activities: | ||||||||||||||||||||
Acquisition of property, plant and equipment | (107 | ) | (62 | ) | (53 | ) | (63 | ) | (89 | ) | ||||||||||
Disposal of businesses and joint venture equity interests, net of cash disposed | — | — | — | 1 | (6 | ) | ||||||||||||||
Other investing activities | 2 | 9 | (1 | ) | 2 | 1 | ||||||||||||||
Net cash used in investing activities | (105 | ) | (53 | ) | (54 | ) | (60 | ) | (94 | ) | ||||||||||
Financing Activities: | ||||||||||||||||||||
Long-term debt repayments | (24 | ) | (229 | ) | (182 | ) | (112 | ) | (95 | ) | ||||||||||
Dividends paid to common shareholders | (17 | ) | (18 | ) | (18 | ) | (18 | ) | (17 | ) | ||||||||||
Other financing activities | (5 | ) | (3 | ) | (2 | ) | (5 | ) | (2 | ) | ||||||||||
Net cash used in financing activities | (46 | ) | (250 | ) | (202 | ) | (135 | ) | (114 | ) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | (4 | ) | 4 | 1 | 2 | ||||||||||||||
Decrease in cash, cash equivalents and restricted cash | (70 | ) | (69 | ) | (125 | ) | (106 | ) | (33 | ) | ||||||||||
Cash, cash equivalents and restricted cash, including amounts classified as held for sale, as of beginning of the period(1) | 257 | 326 | 451 | 557 | 590 | |||||||||||||||
Cash, cash equivalents and restricted cash as of end of the period | $ | 187 | $ | 257 | $ | 326 | $ | 451 | $ | 557 | ||||||||||
Cash, cash equivalents and restricted cash are comprised of: | ||||||||||||||||||||
Cash and cash equivalents | 164 | 233 | 302 | 427 | 531 | |||||||||||||||
Restricted cash classified as other current assets | 2 | — | — | — | — | |||||||||||||||
Restricted cash classified as other noncurrent assets | 21 | 24 | 24 | 24 | 24 | |||||||||||||||
Cash and cash equivalents classified as assets held for sale | — | — | 2 | |||||||||||||||||
Cash, cash equivalents and restricted cash as of end of the period | $ | 187 | $ | 257 | $ | 326 | $ | 451 | $ | 557 |
(1) Included
Reconciliation of Reportable Segment Net Revenues to Total Net Revenues (in millions) (unaudited) | ||||||||||||
For the Three Months Ended | ||||||||||||
2023 | 2023 | 2022 | ||||||||||
Reportable segment net revenues | ||||||||||||
Foodservice | $ | 626 | $ | 675 | $ | 633 | ||||||
Food and Beverage Merchandising | 653 | 712 | 872 | |||||||||
Other | — | — | 6 | |||||||||
Intersegment revenues | (5 | ) | (8 | ) | (35 | ) | ||||||
Total net revenues | $ | 1,274 | $ | 1,379 | $ | 1,476 |
Reconciliation of Reportable Segment Adjusted EBITDA to Adjusted EBITDA (in millions) (unaudited) | ||||||||||||
For the Three Months Ended | ||||||||||||
2023 | 2023 | 2022 | ||||||||||
Reportable segment Adjusted EBITDA | ||||||||||||
Foodservice | $ | 112 | $ | 117 | $ | 85 | ||||||
Food and Beverage Merchandising | 113 | 130 | 109 | |||||||||
Other | — | — | (1 | ) | ||||||||
Unallocated | (18 | ) | (20 | ) | (26 | ) | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 207 | $ | 227 | $ | 167 |
Reconciliations of Net Income (Loss) from Continuing Operations to Adjusted EBITDA and Diluted EPS from Continuing Operations to Adjusted EPS (in millions, except per share amounts) (unaudited) | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Net income to Adjusted EBITDA | Diluted EPS to Adjusted EPS | Net income to Adjusted EBITDA | Diluted EPS to Adjusted EPS | Net income to Adjusted EBITDA | Diluted EPS to Adjusted EPS | Net loss to Adjusted EBITDA | Diluted EPS to Adjusted EPS | Net income to Adjusted EBITDA | Diluted EPS to Adjusted EPS | |||||||||||||||||||||||||||||||
Net income (loss) from continuing operations / Diluted EPS from continuing operations (Reported GAAP Measure) | $ | 22 | $ | 0.12 | $ | 28 | $ | 0.15 | $ | 27 | $ | 0.15 | $ | (222 | ) | $ | (1.28 | ) | $ | 319 | $ | 1.77 | ||||||||||||||||||
Income tax expense (benefit) | 2 | 22 | (11 | ) | (3 | ) | 149 | |||||||||||||||||||||||||||||||||
Interest expense, net | 57 | 61 | 60 | 245 | 218 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization (excluding restructuring-related charges) | 80 | 81 | 84 | 327 | 339 | |||||||||||||||||||||||||||||||||||
Beverage Merchandising Restructuring charges(1) | 35 | 0.16 | 32 | 0.15 | — | — | 470 | 2.15 | — | — | ||||||||||||||||||||||||||||||
Other restructuring and asset impairment charges (reversals) | 6 | 0.03 | — | — | — | — | 6 | 0.03 | 58 | 0.32 | ||||||||||||||||||||||||||||||
Loss (gain) on sale of businesses and noncurrent assets | 1 | — | — | — | — | — | 2 | 0.01 | (266 | ) | (1.17 | ) | ||||||||||||||||||||||||||||
Non-cash pension expense (income)(2) | 2 | 0.01 | 2 | 0.01 | 3 | 0.01 | 8 | 0.03 | (49 | ) | (0.12 | ) | ||||||||||||||||||||||||||||
Unrealized losses (gains) on commodity derivatives | 1 | — | (1 | ) | — | — | — | 1 | — | 4 | — | |||||||||||||||||||||||||||||
Foreign exchange losses on cash | 2 | 0.01 | 2 | 0.01 | 1 | — | 6 | 0.02 | 3 | 0.01 | ||||||||||||||||||||||||||||||
Gain on legal settlement | — | — | — | — | — | — | — | — | (15 | ) | (0.11 | ) | ||||||||||||||||||||||||||||
Business integration costs | — | — | — | — | — | — | — | — | 6 | 0.03 | ||||||||||||||||||||||||||||||
Operational process engineering-related consultancy costs(3) | — | — | — | — | 2 | 0.01 | — | — | 9 | 0.03 | ||||||||||||||||||||||||||||||
Executive transition charges | — | — | — | — | — | — | — | — | 2 | 0.02 | ||||||||||||||||||||||||||||||
Costs associated with legacy sold facility | — | — | — | — | — | — | — | — | 6 | 0.03 | ||||||||||||||||||||||||||||||
Other | (1 | ) | — | — | — | 1 | — | — | — | 2 | — | |||||||||||||||||||||||||||||
Adjusted EBITDA / Adjusted EPS(4) (Non-GAAP Measure) | $ | 207 | $ | 0.33 | $ | 227 | $ | 0.32 | $ | 167 | $ | 0.17 | $ | 840 | $ | 0.96 | $ | 785 | $ | 0.81 |
(1) Reflects charges related to the Beverage Merchandising Restructuring, including
(2) Reflects the non-cash pension expense (income) related to our employee benefit plans.
(3) Reflects the costs incurred to evaluate and improve the efficiencies of our manufacturing and distribution operations.
(4) Income tax expense (benefit), interest expense, net and depreciation and amortization (excluding restructuring-related charges) are not adjustments from diluted EPS to calculate Adjusted EPS. Adjustments were tax effected using the applicable statutory or effective income tax rate for each period. For the three months ended
Source:
2024 GlobeNewswire, Inc., source