Pactiv Evergreen Inc. (“Pactiv Evergreen” or the “Company”) today
reported results for the third quarter of 2023. Michael King,
President and Chief Executive Officer of Pactiv Evergreen, said, “I
am proud of our team’s performance during the third quarter. The
Company continued to execute at a high level, while managing costs
and making further progress on its transformational journey. We
have made significant progress on the Beverage Merchandising
Restructuring during the year, including the closure of our Canton
mill and our Olmsted Falls, Ohio converting facility and the
reorganization of our management structure. These are important
steps to enhance our position as a market-leading North American
food and beverage packaging company. While the macroeconomic
environment remains uncertain, the actions we have taken to improve
our cost structure, coupled with the resilience of our business
model, allowed us to generate solid free cash flow and drive
increased value for our shareholders.”
Jon Baksht, Chief Financial Officer of Pactiv
Evergreen, added, “We continue to prioritize the strengthening of
our balance sheet. Our ability to generate strong cash flows from
operating activities and free cash flow underpins our commitment to
reduce our outstanding borrowings and invest in future growth
opportunities. Specifically, management set a target earlier this
year to improve our Net Leverage Ratio1 to the low 4s by year end.
I am pleased to share that we improved our Net Leverage Ratio1 to
4.2x as of September 30, 2023, delivering against our target and
creating momentum heading into year end. In addition, we are
focused on optimizing our working capital levels and are on track
to deliver solid free cash flow for 2023.”
__________________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. Net Leverage Ratio is a non-GAAP measure calculated as Net
Debt divided by the last twelve months Adjusted EBITDA. Net Debt is
a non-GAAP measure and is defined as the sum of current and
long-term debt, less cash and cash equivalents. Reconciliations of
Net Debt and the last twelve months Adjusted EBITDA are included
below.
Beverage Merchandising Restructuring
Update
On March 6, 2023, the Company announced the
Beverage Merchandising Restructuring, a plan to take significant
restructuring actions related to its legacy Beverage Merchandising
operations. During the second quarter of 2023, the Company ceased
operations at its Canton, North Carolina mill and its converting
facility in Olmsted Falls, Ohio and production from the Olmsted
Falls facility was reallocated to other sites. In addition,
effective April 1, 2023, the Company reorganized its management
structure by combining its Beverage Merchandising and Food
Merchandising businesses. During the third quarter, the Company
continued to explore strategic alternatives related to its Pine
Bluff, Arkansas mill and Waynesville, North Carolina facility.
The Company incurred $5 million of non-cash
charges during the third quarter of 2023 (year-to-date: $315
million) and currently expects to incur total non-cash charges in
the range of $325 million to $330 million. These non-cash charges
are related to the acceleration of depreciation of property, plant
and equipment and other non-cash charges. The Company also incurred
$27 million of cash-based charges during the third quarter of 2023
(year-to-date: $120 million) related to severance and associated
benefits and exit, disposal and other transition costs and
currently expects to incur total cash-based charges in the range of
$150 million to $160 million.
The above estimates are provisional and include
significant management judgments and assumptions that could change
materially as the Company executes its plan. Actual results may
differ from these estimates, and the execution of the plan
could result in additional restructuring charges or impairments not
reflected above.
Third Quarter 2023 Results vs. Third
Quarter 2022 Results
Net revenues in the third quarter of 2023 were
$1,379 million compared to $1,609 million in the third quarter of
2022. The decrease was primarily due to the closure of our Canton,
North Carolina mill during the second quarter of 2023, lower sales
volume and unfavorable pricing due to the contractual pass-through
of lower material costs. Lower sales volume was mostly due to a
focus on value over volume and the market softening amid
inflationary pressures within our Food and Beverage Merchandising
segment.
Net income from continuing operations was $28
million, or $0.15 per diluted share, in the third quarter of 2023
compared to $175 million of net income, or $0.98 per diluted share,
in the third quarter of 2022. The prior year period included a $239
million gain on the sale of Beverage Merchandising Asia and a $47
million pension settlement gain, partially offset by a $56 million
impairment charge due to the decision to exit our remaining
closures businesses. The change in net income from continuing
operations was also impacted by a $57 million decrease in tax
expense, largely driven by the discrete tax effect of the gain on
sale in the prior year period, a $49 million increase in gross
profit, mainly from lower material and transportation costs,
partially offset by $28 million in current year period charges
related to the Beverage Merchandising Restructuring.
Adjusted EBITDA1 was $227 million and Adjusted
EPS1 was $0.32 in the third quarter of 2023 compared to $187
million and $0.13, respectively, in the third quarter of 2022. The
increases in Adjusted EBITDA1 and Adjusted EPS1 were primarily
attributable to lower material costs, net of costs passed through,
and lower transportation and manufacturing costs, partially offset
by the closure of our Canton, North Carolina mill.
Segment Results
Foodservice
|
|
For the Three Months Ended September 30, |
|
|
Components of Change in Net Revenues |
|
(In millions, except for %) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
Total segment net revenues |
|
$ |
675 |
|
|
$ |
713 |
|
|
$ |
(38 |
) |
|
|
(5 |
)% |
|
|
(5 |
)% |
|
|
— |
% |
Segment Adjusted EBITDA |
|
$ |
117 |
|
|
$ |
107 |
|
|
$ |
10 |
|
|
|
9 |
% |
|
|
|
|
|
|
Segment Adjusted EBITDA margin |
|
|
17 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in net revenues was mostly due to
unfavorable pricing, largely due to lower material costs.
The increase in Adjusted EBITDA was mainly due
to lower transportation and material costs, net of costs passed
through.
Food and Beverage Merchandising
|
|
For the Three Months Ended September 30, |
|
|
Components of Change in Net Revenues |
|
(In millions, except for %) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
|
Dispositions / Mill Closure |
|
|
FX |
|
Total segment net revenues |
|
$ |
712 |
|
|
$ |
920 |
|
|
$ |
(208 |
) |
|
|
(23 |
)% |
|
|
— |
% |
|
|
(6 |
)% |
|
|
(18 |
)% |
|
|
1 |
% |
Segment Adjusted EBITDA |
|
$ |
130 |
|
|
$ |
102 |
|
|
$ |
28 |
|
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA margin |
|
|
18 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in net revenues was driven by the
closure of our Canton, North Carolina mill and lower sales volume.
Sales volume was lower mostly due to a focus on value over volume
and the market softening amid inflationary pressures.
The increase in Adjusted EBITDA was due to lower
material costs, net of costs passed through, and lower
transportation costs, partially offset by the closure of our
Canton, North Carolina mill and lower sales volume.
Third Quarter 2023 Results vs. Second
Quarter 2023 Results
Net revenues in the third quarter of 2023 were
$1,379 million compared to $1,426 million in the second quarter of
2023. The decrease was mainly due to the closure of the Canton,
North Carolina mill during the second quarter of 2023.
Net income from continuing operations was $28
million, or $0.15 per diluted share, in the third quarter of 2023
compared to a net loss from continuing operations of $139 million,
or $0.78 per diluted share, in the second quarter of 2023. The
change was mostly due to $184 million of lower charges associated
with the Beverage Merchandising Restructuring, partially offset by
$30 million of higher tax expense largely driven by the decline in
the discrete tax benefit associated with the aforementioned
restructuring.
Adjusted EBITDA1 was $227 million and Adjusted
EPS1 was $0.32 in the third quarter of 2023 compared to $217
million and $0.20, respectively, in the second quarter of 2023. The
increases in Adjusted EBITDA1 and Adjusted EPS1 were both primarily
due to the impact from a cold mill outage in the prior quarter.
Segment Results
Foodservice
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
|
|
|
|
|
|
Components of Change in Net Revenues |
|
(In millions, except for %) |
|
2023 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
Total segment net revenues |
|
$ |
675 |
|
|
$ |
656 |
|
|
$ |
19 |
|
|
|
3 |
% |
|
|
1 |
% |
|
|
2 |
% |
Segment Adjusted EBITDA |
|
$ |
117 |
|
|
$ |
128 |
|
|
$ |
(11 |
) |
|
|
(9 |
)% |
|
|
|
|
|
|
Segment Adjusted EBITDA margin |
|
|
17 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
The increase in net revenues was predominantly
due to higher sales volume driven by seasonal trends.
The decrease in Adjusted EBITDA was due to
higher material costs, net of costs passed through, and higher
manufacturing costs.
Food and Beverage Merchandising
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
|
|
|
|
|
|
Components of Change in Net Revenues |
|
(In millions, except for %) |
|
2023 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
Price/Mix |
|
|
Volume |
|
|
Mill Closure |
|
Total segment net revenues |
|
$ |
712 |
|
|
$ |
805 |
|
|
$ |
(93 |
) |
|
|
(12 |
)% |
|
|
(2 |
)% |
|
|
(2 |
)% |
|
|
(8 |
)% |
Segment Adjusted EBITDA |
|
$ |
130 |
|
|
$ |
109 |
|
|
$ |
21 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA margin |
|
|
18 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in net revenues was mainly due to
the closure of the Canton, North Carolina mill and lower sales
volume. Lower sales volume was primarily attributable to a
continued focus on value over volume.
The increase in Adjusted EBITDA was largely due
to lower manufacturing costs including the impact from a cold mill
outage in the prior quarter, partially offset by unfavorable
product mix.
Balance Sheet and Cash Flow
Highlights
The Company continues to deliver on its
commitment to strengthen its balance sheet. Since December 31,
2022, the Company reduced its total outstanding debt, mostly due to
$515 million of early repayments, and Net Debt2 also declined. Net
cash flow provided by operating activities and Free Cash Flow2 were
positive during the third quarter of 2023, inclusive of cash
payments related to the Beverage Merchandising Restructuring. The
Company’s Board of Directors declared a third quarter 2023 dividend
on October 31, 2023 of $0.10 per share of common stock, payable on
December 15, 2023 to shareholders of record as of November 30,
2023.
(In
millions) |
|
As of September 30, 2023 |
|
(In
millions) |
|
For the Three Months Ended
September 30, 2023 |
Total outstanding debt |
$ |
3,611 |
|
|
Net cash flow provided by operating activities |
$ |
238 |
|
Cash and
cash equivalents |
|
(233 |
) |
|
Capital
expenditures |
|
(62 |
) |
Net
Debt2 |
$ |
3,378 |
|
|
Free Cash
Flow2 |
$ |
176 |
|
Outlook
“The Company increased its full year 2023
Adjusted EBITDA1 guidance to a range of $825 million to $835
million, underscoring Pactiv Evergreen’s ability to drive
profitable growth despite uncertainty across the broader market and
industry. In addition, the Company increased its guidance for full
year 2023 Free Cash Flow2. We are confident in our ability to close
fiscal 2023 from a position of strength and are encouraged by our
current momentum and believe it provides a solid foundation as we
pivot to fiscal 2024,” said Mr. King.
The Company has not reconciled the non-GAAP
measure Adjusted EBITDA 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 EBITDA to GAAP net income (loss), as the Company is
unable to quantify these amounts without unreasonable efforts.
__________________2 Net Debt and Free Cash Flow
are non-GAAP measures. Refer to their definitions in the discussion
on non-GAAP financial measures below.
Conference Call and Webcast
Presentation
The Company will host a conference call and
webcast presentation to discuss these results on November 2, 2023
at 8:30 a.m. U.S. Eastern Time. Investors interested in
participating in the live call may register for the call here.
Participants may also access the live webcast and supplemental
presentation on the Pactiv Evergreen Investor Relations website at
https://investors.pactivevergreen.com/financial-information/sec-filings under
“News & Events.” The Company may from time to time use this
Investor Relations website as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD.
About Pactiv Evergreen Inc.
Pactiv Evergreen Inc. (NASDAQ: PTVE) is a leading manufacturer and
distributor of fresh foodservice and food merchandising products
and fresh beverage cartons in North America. The Company produces a
broad range of on-trend and feature-rich products that protect,
package and display food and beverages for today’s consumers. Its
products, many of which are made with recycled, recyclable or
renewable materials, are sold to a diversified mix of customers,
including restaurants, foodservice distributors, retailers, food
and beverage producers, packers and processors. Learn more at
www.pactivevergreen.com.
Note to Investors Regarding
Forward-Looking Statements
This press release contains forward-looking
statements. All statements contained in this press release other
than statements of historical fact are forward-looking statements,
including statements regarding our guidance as to our future
financial and operational results and growth prospects and the
expected timelines and amount and type of cash and non-cash charges
that we expect to incur in connection with 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 December 31, 2022 filed with
the Securities and Exchange Commission, or SEC, and our Quarterly
Report on Form 10-Q for the quarters ended March 31, 2023, June 30,
2023 and September 30, 2023 filed with the SEC. New risks emerge
from time to time, and it is not possible for our management to
predict all risks, nor can management assess the impact of all
factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statement
the Company makes. Investors are cautioned not to place undue
reliance on any such forward-looking statements, which speak only
as of the date they are made. Except as otherwise required by law,
the Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Use of Non-GAAP Financial
Measures
The Company uses the following financial
measures that are not calculated in accordance with generally
accepted accounting principles in the United States (“GAAP”):
Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Net Debt and Net
Leverage Ratio.
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 from continuing operations (“EPS”)
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 defines Net Leverage Ratio as Net
Debt divided by the last twelve months Adjusted EBITDA.
The Company has provided herein a reconciliation
of (i) net income (loss) from continuing operations to Adjusted
EBITDA, (ii) diluted (loss) 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 and Net Leverage Ratio as supplemental measures
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 these 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: Curt
Worthington 847.482.2040
InvestorRelations@pactivevergreen.com
|
Pactiv Evergreen Inc. Condensed
Consolidated Statements of Income (Loss) (in
millions, except per share amounts)
(unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Net revenues |
|
$ |
1,379 |
|
|
$ |
1,426 |
|
|
$ |
1,609 |
|
Cost of sales |
|
|
(1,098 |
) |
|
|
(1,342 |
) |
|
|
(1,377 |
) |
Gross profit |
|
|
281 |
|
|
|
84 |
|
|
|
232 |
|
Selling, general and administrative expenses |
|
|
(137 |
) |
|
|
(136 |
) |
|
|
(145 |
) |
Restructuring, asset impairment and other related charges |
|
|
(28 |
) |
|
|
(32 |
) |
|
|
(57 |
) |
Other (expense) income, net |
|
|
(3 |
) |
|
|
4 |
|
|
|
239 |
|
Operating income (loss) from continuing
operations |
|
|
113 |
|
|
|
(80 |
) |
|
|
269 |
|
Non-operating (expense) income, net |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
44 |
|
Interest expense, net |
|
|
(61 |
) |
|
|
(64 |
) |
|
|
(59 |
) |
Income (loss) from continuing operations before
tax |
|
|
50 |
|
|
|
(147 |
) |
|
|
254 |
|
Income tax (expense) benefit |
|
|
(22 |
) |
|
|
8 |
|
|
|
(79 |
) |
Income (loss) from continuing operations |
|
|
28 |
|
|
|
(139 |
) |
|
|
175 |
|
Income from discontinued operations, net of income taxes |
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
Net income (loss) |
|
|
30 |
|
|
|
(139 |
) |
|
|
176 |
|
Income attributable to non-controlling interests |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
Net income (loss) attributable to Pactiv Evergreen Inc.
common shareholders |
|
$ |
29 |
|
|
$ |
(139 |
) |
|
$ |
176 |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to Pactiv Evergreen
Inc. common shareholders |
|
|
|
|
|
|
|
|
|
From continuing operations |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.15 |
|
|
$ |
(0.78 |
) |
|
$ |
0.98 |
|
Diluted |
|
$ |
0.15 |
|
|
$ |
(0.78 |
) |
|
$ |
0.98 |
|
From discontinued operations |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
— |
|
Total |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
(0.78 |
) |
|
$ |
0.99 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
(0.78 |
) |
|
$ |
0.98 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic |
|
|
178.7 |
|
|
|
178.5 |
|
|
|
177.9 |
|
Weighted-average shares outstanding - diluted |
|
|
179.7 |
|
|
|
178.5 |
|
|
|
178.7 |
|
|
Pactiv Evergreen Inc. Condensed
Consolidated Balance Sheets (in millions)
(unaudited) |
|
|
|
As of September 30,
2023 |
|
|
As of June 30, 2023 |
|
|
As of September 30,
2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
233 |
|
|
$ |
302 |
|
|
$ |
559 |
|
Accounts receivable, net |
|
|
470 |
|
|
|
468 |
|
|
|
523 |
|
Related party receivables |
|
|
38 |
|
|
|
38 |
|
|
|
46 |
|
Inventories |
|
|
846 |
|
|
|
927 |
|
|
|
1,123 |
|
Other current assets |
|
|
109 |
|
|
|
114 |
|
|
|
117 |
|
Assets held for sale |
|
|
7 |
|
|
|
— |
|
|
|
— |
|
Total current assets |
|
|
1,703 |
|
|
|
1,849 |
|
|
|
2,368 |
|
Property, plant and equipment, net |
|
|
1,469 |
|
|
|
1,488 |
|
|
|
1,735 |
|
Operating lease right-of-use assets, net |
|
|
276 |
|
|
|
268 |
|
|
|
275 |
|
Goodwill |
|
|
1,815 |
|
|
|
1,815 |
|
|
|
1,815 |
|
Intangible assets, net |
|
|
1,019 |
|
|
|
1,034 |
|
|
|
1,079 |
|
Other noncurrent assets |
|
|
164 |
|
|
|
176 |
|
|
|
153 |
|
Total assets |
|
$ |
6,446 |
|
|
$ |
6,630 |
|
|
$ |
7,425 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
329 |
|
|
$ |
352 |
|
|
$ |
411 |
|
Related party payables |
|
|
10 |
|
|
|
8 |
|
|
|
10 |
|
Current portion of long-term debt |
|
|
18 |
|
|
|
18 |
|
|
|
31 |
|
Current portion of operating lease liabilities |
|
|
63 |
|
|
|
62 |
|
|
|
64 |
|
Income taxes payable |
|
|
5 |
|
|
|
3 |
|
|
|
5 |
|
Accrued and other current liabilities |
|
|
447 |
|
|
|
402 |
|
|
|
437 |
|
Liabilities held for sale |
|
|
— |
|
|
|
— |
|
|
|
24 |
|
Total current liabilities |
|
|
872 |
|
|
|
845 |
|
|
|
982 |
|
Long-term debt |
|
|
3,593 |
|
|
|
3,822 |
|
|
|
4,202 |
|
Long-term operating lease liabilities |
|
|
225 |
|
|
|
220 |
|
|
|
222 |
|
Deferred income taxes |
|
|
255 |
|
|
|
255 |
|
|
|
318 |
|
Long-term employee benefit obligations |
|
|
59 |
|
|
|
59 |
|
|
|
97 |
|
Other noncurrent liabilities |
|
|
138 |
|
|
|
144 |
|
|
|
137 |
|
Total liabilities |
|
$ |
5,142 |
|
|
$ |
5,345 |
|
|
$ |
5,958 |
|
Total equity attributable to Pactiv Evergreen Inc. common
shareholders |
|
|
1,300 |
|
|
|
1,282 |
|
|
|
1,462 |
|
Non-controlling interests |
|
|
4 |
|
|
|
3 |
|
|
|
5 |
|
Total equity |
|
$ |
1,304 |
|
|
$ |
1,285 |
|
|
$ |
1,467 |
|
Total liabilities and equity |
|
$ |
6,446 |
|
|
$ |
6,630 |
|
|
$ |
7,425 |
|
|
Pactiv Evergreen Inc. Condensed
Consolidated Statements of Cash Flows (in
millions) (unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
30 |
|
|
$ |
(139 |
) |
|
$ |
(133 |
) |
|
$ |
27 |
|
|
$ |
176 |
|
Adjustments to reconcile net income (loss) to operating cash
flows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
85 |
|
|
|
259 |
|
|
|
174 |
|
|
|
84 |
|
|
|
85 |
|
Deferred income taxes |
|
|
— |
|
|
|
(28 |
) |
|
|
(39 |
) |
|
|
(14 |
) |
|
|
50 |
|
Unrealized (gains) losses on derivatives |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
2 |
|
|
|
— |
|
|
|
10 |
|
Restructuring related non-cash and asset impairment charges (net of
reversals) |
|
|
3 |
|
|
|
9 |
|
|
|
32 |
|
|
|
— |
|
|
|
56 |
|
Gain (loss) on sale of businesses and noncurrent assets |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(239 |
) |
Non-cash portion of employee benefit obligations |
|
|
3 |
|
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
(44 |
) |
Non-cash portion of operating lease expense |
|
|
20 |
|
|
|
19 |
|
|
|
21 |
|
|
|
20 |
|
|
|
21 |
|
Other non-cash items, net |
|
|
11 |
|
|
|
10 |
|
|
|
6 |
|
|
|
8 |
|
|
|
11 |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(3 |
) |
|
|
46 |
|
|
|
(53 |
) |
|
|
79 |
|
|
|
4 |
|
Inventories |
|
|
75 |
|
|
|
47 |
|
|
|
61 |
|
|
|
58 |
|
|
|
(35 |
) |
Accounts payable |
|
|
(15 |
) |
|
|
(38 |
) |
|
|
11 |
|
|
|
(45 |
) |
|
|
(66 |
) |
Operating lease payments |
|
|
(19 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
Accrued and other current liabilities |
|
|
43 |
|
|
|
(28 |
) |
|
|
10 |
|
|
|
(21 |
) |
|
|
67 |
|
Other assets and liabilities |
|
|
6 |
|
|
|
(13 |
) |
|
|
16 |
|
|
|
(6 |
) |
|
|
— |
|
Net cash provided by operating activities |
|
|
238 |
|
|
|
127 |
|
|
|
88 |
|
|
|
173 |
|
|
|
75 |
|
Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
|
(62 |
) |
|
|
(53 |
) |
|
|
(63 |
) |
|
|
(89 |
) |
|
|
(55 |
) |
Disposal of businesses and joint venture equity interests, net of
cash disposed |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
(6 |
) |
|
|
317 |
|
Other investing activities |
|
|
9 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
Net cash (used in) provided by investing
activities |
|
|
(53 |
) |
|
|
(54 |
) |
|
|
(60 |
) |
|
|
(94 |
) |
|
|
265 |
|
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt repayments |
|
|
(229 |
) |
|
|
(182 |
) |
|
|
(112 |
) |
|
|
(95 |
) |
|
|
(6 |
) |
Dividends paid to common shareholders |
|
|
(18 |
) |
|
|
(18 |
) |
|
|
(18 |
) |
|
|
(17 |
) |
|
|
(18 |
) |
Other financing activities |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net cash used in financing activities |
|
|
(250 |
) |
|
|
(202 |
) |
|
|
(135 |
) |
|
|
(114 |
) |
|
|
(26 |
) |
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(4 |
) |
|
|
4 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(3 |
) |
(Decrease) increase in cash, cash equivalents and restricted
cash |
|
|
(69 |
) |
|
|
(125 |
) |
|
|
(106 |
) |
|
|
(33 |
) |
|
|
311 |
|
Cash, cash equivalents and restricted cash, including amounts
classified as held for sale or other noncurrent assets, as of
beginning of the period(1) |
|
|
326 |
|
|
|
451 |
|
|
|
557 |
|
|
|
590 |
|
|
|
279 |
|
Cash, cash equivalents and restricted cash as of end of the
period(1) |
|
$ |
257 |
|
|
$ |
326 |
|
|
$ |
451 |
|
|
$ |
557 |
|
|
$ |
590 |
|
Cash, cash equivalents and restricted cash are comprised of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
233 |
|
|
$ |
302 |
|
|
$ |
427 |
|
|
$ |
531 |
|
|
$ |
559 |
|
Restricted cash classified as other noncurrent assets |
|
|
24 |
|
|
|
24 |
|
|
|
24 |
|
|
|
24 |
|
|
|
24 |
|
Cash and cash equivalents classified as assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
7 |
|
Cash, cash equivalents and restricted cash as of end of the
period(1) |
|
$ |
257 |
|
|
$ |
326 |
|
|
$ |
451 |
|
|
$ |
557 |
|
|
$ |
590 |
|
(1) Includes $2 million, $7 million and $9 million
of cash and cash equivalents classified as current assets held for
sale as of December 31, 2022, September 30, 2022 and June 30, 2022,
respectively. During the nine months ended September 30, 2023, we
revised the presentation of restricted cash balances on our
condensed consolidated statements of cash flows to include $24
million of restricted cash (classified as other noncurrent assets
on our condensed consolidated balance sheets) as of each of the
reporting dates presented.
|
Pactiv Evergreen Inc. Reconciliation of
Reportable Segment Net Revenues to Total Net Revenues
(in millions) (unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
Reportable segment net revenues |
|
|
|
|
|
|
|
|
|
Foodservice |
|
$ |
675 |
|
|
$ |
656 |
|
|
$ |
713 |
|
Food and Beverage Merchandising |
|
|
712 |
|
|
|
805 |
|
|
|
920 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
26 |
|
Intersegment revenues |
|
|
(8 |
) |
|
|
(35 |
) |
|
|
(50 |
) |
Total net revenues |
|
$ |
1,379 |
|
|
$ |
1,426 |
|
|
$ |
1,609 |
|
|
Pactiv Evergreen Inc. Reconciliation of
Reportable Segment Adjusted EBITDA to Adjusted EBITDA
(in millions) (unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
Reportable segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
Foodservice |
|
$ |
117 |
|
|
$ |
128 |
|
|
$ |
107 |
|
Food and Beverage Merchandising |
|
|
130 |
|
|
|
109 |
|
|
|
102 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Unallocated |
|
|
(20 |
) |
|
|
(20 |
) |
|
|
(23 |
) |
Adjusted EBITDA (Non-GAAP) |
|
$ |
227 |
|
|
$ |
217 |
|
|
$ |
187 |
|
|
Pactiv Evergreen Inc. 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 |
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
|
|
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) |
|
$ |
28 |
|
|
$ |
0.15 |
|
|
$ |
(139 |
) |
|
$ |
(0.78 |
) |
|
$ |
175 |
|
|
$ |
0.98 |
|
Income tax expense (benefit) |
|
|
22 |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
79 |
|
|
|
|
Interest expense, net |
|
|
61 |
|
|
|
|
|
|
64 |
|
|
|
|
|
|
59 |
|
|
|
|
Depreciation and amortization (excluding restructuring-related
charges) |
|
|
81 |
|
|
|
|
|
|
82 |
|
|
|
|
|
|
85 |
|
|
|
|
Beverage Merchandising Restructuring charges(1) |
|
|
32 |
|
|
|
0.15 |
|
|
|
216 |
|
|
|
0.98 |
|
|
|
— |
|
|
|
— |
|
Other restructuring and asset impairment charges (reversals) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
57 |
|
|
|
0.31 |
|
Loss (gain) on sale of businesses and noncurrent assets |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(239 |
) |
|
|
(1.10 |
) |
Non-cash pension expense (income)(2) |
|
|
2 |
|
|
|
0.01 |
|
|
|
3 |
|
|
|
0.01 |
|
|
|
(44 |
) |
|
|
(0.11 |
) |
Operational process engineering-related consultancy costs(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
0.01 |
|
Unrealized (gains) losses on commodity derivatives |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
10 |
|
|
|
0.03 |
|
Foreign exchange losses (gains) on cash |
|
|
2 |
|
|
|
0.01 |
|
|
|
(2 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.01 |
|
Adjusted EBITDA / Adjusted EPS(4)
(Non-GAAP Measure) |
|
$ |
227 |
|
|
$ |
0.32 |
|
|
$ |
217 |
|
|
$ |
0.20 |
|
|
$ |
187 |
|
|
$ |
0.13 |
|
- Reflects charges related to the Beverage Merchandising
Restructuring, including $4 million and $177 million of accelerated
depreciation expense for the three months ended September 30, 2023
and June 30, 2023, respectively.
- Reflects the non-cash pension expense (income) related to our
employee benefit plans, including the pension settlement gain of
$47 million recognized during the three months ended September 30,
2022.
- Reflects the costs incurred to evaluate and improve the
efficiencies of our manufacturing and distribution operations.
- 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 effective
income tax rate for each period. For the three months ended
September 30, 2023, June 30, 2023 and September 30, 2022, the tax
effect of the adjustments were income of $0.03 per diluted share,
income of $0.24 per diluted share and a loss of $0.33 per diluted
share, respectively.
|
Pactiv Evergreen Inc. Reconciliation of
Twelve Months Ended Net Loss from Continuing Operations to Twelve
Months Ended Adjusted EBITDA (in
millions) (unaudited) |
|
|
|
|
|
For the Twelve Months Ended September 30,
2023 |
Net loss from continuing operations (Reported GAAP
Measure) |
$ |
(217 |
) |
Income tax benefit |
|
(16 |
) |
Interest expense, net |
|
248 |
|
Depreciation and amortization (excluding restructuring-related
charges) |
|
331 |
|
Beverage Merchandising Restructuring charges(1) |
|
435 |
|
Loss on sale of businesses and noncurrent assets |
|
1 |
|
Non-cash pension expense(2) |
|
9 |
|
Operational process engineering-related consultancy costs(3) |
|
2 |
|
Foreign exchange losses on cash |
|
5 |
|
Other |
|
2 |
|
Adjusted EBITDA (Non-GAAP
Measure) |
$ |
800 |
|
- Reflects charges related to the Beverage Merchandising
Restructuring, including $177 million of accelerated depreciation
expense.
- Reflects the non-cash pension expense related to our employee
benefit plans.
- Reflects the costs incurred to evaluate and improve the
efficiencies of our manufacturing and distribution operations.
Pactiv Evergreen (NASDAQ:PTVE)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Pactiv Evergreen (NASDAQ:PTVE)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024