Pactiv Evergreen Inc. (“Pactiv Evergreen” or the “Company”) today
reported results for the fourth quarter of 2023. Michael King,
President and Chief Executive Officer of Pactiv Evergreen, said,
“This was a pivotal year for Pactiv Evergreen. The Company’s
commitment to operational excellence and profitable growth helped
offset the headwinds we encountered throughout the year. Our teams
demonstrated agility and discipline, allowing the Company to exceed
its financial goals while also delivering for customers. The
Company made significant progress on multiple fronts of its
transformational journey in 2023, and I cannot thank our employees
enough for their hard work. Looking ahead to 2024, the Company
plans to initiate the next phase of its strategic transformation
through a footprint optimization plan, which will include the
rationalization of a portion of the Company’s production capacity.
We expect these actions to generate significant annual cost savings
and better align resources and capabilities with customers’ needs
as the Company targets sustainable growth opportunities.”
Jon Baksht, Chief Financial Officer of Pactiv
Evergreen, added, “We are proud of the Company’s ability to deliver
consistent improvement in its profitability profile. During the
year, the Company achieved significant progress against its
long-term financial priorities. Notably, the Company reduced its
total debt by $550 million, which improves its ability to invest in
strategic opportunities that strengthen the business. Looking
ahead, our team remains committed to actively managing costs and
driving operational excellence initiatives across the organization.
We believe those efforts, coupled with the solid momentum sustained
to date, positions the Company for profitable growth in 2024. The
strength of the balance sheet and our ability to consistently
generate cash gives us confidence in the Company’s ability to
navigate macroeconomic volatility, profitably grow through
inflationary cycles and deliver solid returns for
shareholders.”
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 February 29, 2024, the Company announced a
restructuring plan approved by the Board of Directors to optimize
its manufacturing and warehousing footprint (the “Footprint
Optimization”) that is expected to improve operating efficiency and
result in estimated run rate cost savings of $35 million by 2026.
The Company expects to incur capital expenditures of $40 million to
$45 million primarily during 2024 and 2025, to execute its plan.
Additionally, the Company expects to incur total cash restructuring
charges of $50 million to $65 million and total non-cash
restructuring charges of $20 million to $40 million primarily
during 2024 and 2025. The estimated ranges of restructuring charges
are provisional and include significant management judgments and
assumptions that could change materially as the Company executes
the Footprint Optimization. Actual results may differ from these
estimates, and the execution of the Footprint Optimization could
result in additional restructuring charges or impairments not
reflected above.
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 2023, the Company closed its Canton, North
Carolina mill and its Olmsted Falls, Ohio converting facility and
reorganized its management structure by combining its Beverage
Merchandising and Food Merchandising businesses. During the fourth
quarter, the Company continued to explore strategic alternatives
related to its Pine Bluff, Arkansas mill and Waynesville, North
Carolina facility.
For the year ended December 31, 2023, the
Company incurred $324 million of non-cash charges, including $9
million in the fourth quarter, 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 $146 million of cash-based
charges for the year ended December 31, 2023, including $26 million
in the fourth quarter, 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.
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 $1,274 million compared to $1,476 million in the fourth
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, unfavorable pricing due to the contractual
pass-through of lower material costs and unfavorable mix. Lower
sales volume in the Food and Beverage Merchandising segment, mostly
due to a focus on value over volume, was partially offset by higher
volumes in the Foodservice segment.
Net income from continuing operations was $22
million, or $0.12 per diluted share, in the fourth quarter of 2023
compared to $27 million, or $0.15 per diluted share, in the fourth
quarter of 2022. The decrease was largely due to $38 million of
restructuring, asset impairment and other related charges, mainly
driven by the Beverage Merchandising Restructuring, and a $13
million increase in income tax expense from improved profitability.
These decreases were partially offset by $28 million in higher
gross profit and a $15 million decrease in selling, general and
administrative expenses due to lower employee-related costs and the
impact of cost savings from the Beverage Merchandising
Restructuring.
Adjusted EBITDA1 was $207 million and Adjusted
EPS1 was $0.33 in the fourth quarter of 2023 compared to $167
million and $0.17, respectively, in the fourth 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 costs, partially offset by higher
manufacturing costs.
Segment Results
Foodservice
|
|
For the Three Months Ended December 31, |
|
|
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 December 31, |
|
|
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 Canton, North Carolina mill, lower sales volume,
mostly due to a focus on value over volume, and unfavorable
mix.
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 Canton, North Carolina mill and higher manufacturing
costs.
Fourth Quarter 2023 Results vs. Third
Quarter 2023 Results
Net revenues in the fourth quarter of 2023 were
$1,274 million compared to $1,379 million in the third quarter of
2023. The decrease was primarily due to lower sales volume due to a
focus on value over volume in the Food and Beverage Merchandising
segment and seasonal trends in the Foodservice segment.
Net income from continuing operations was $22
million, or $0.12 per diluted share, in the fourth quarter of 2023
compared to $28 million, or $0.15 per diluted share, in the third
quarter of 2023. The decrease was primarily due to $28 million in
lower gross profit, largely driven by lower sales volume, and a $10
million increase in restructuring, asset impairment and other
related charges. These decreases were partially offset by a $20
million decrease in tax expense due to a decline in profitability
and certain discrete benefits recognized during the current
period.
Adjusted EBITDA1 was $207 million and Adjusted
EPS1 was $0.33 in the fourth quarter of 2023 compared to $227
million and $0.32, respectively, in the third quarter of 2023. The
decrease in Adjusted EBITDA1 was mainly due to lower sales volume
which was partially offset by lower material costs, net of costs
passed through. The increase in Adjusted EPS1 was largely due to
the aforementioned decline in tax expense.
Segment Results
Foodservice
|
|
For the Three Months Ended |
|
|
Components of Change in Net Revenues |
|
(In millions, except for %) |
|
December 31,2023 |
|
|
September 30,2023 |
|
|
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 %) |
|
December 31,2023 |
|
|
September 30,2023 |
|
|
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 December 31,
2022, the Company reduced its total outstanding debt by $550
million, and Net Debt3 also declined. Net cash flow provided
by operating activities was positive while Free Cash Flow3 was
negative during the fourth quarter of 2023. The Company’s Board of
Directors declared a fourth quarter 2023 dividend on February 27,
2024 of $0.10 per share of common stock, payable on March 29, 2024
to shareholders of record as of March 15, 2024.
(In
millions) |
|
As of December 31, 2023 |
|
|
(In
millions) |
|
For the Three Months Ended
December 31, 2023 |
|
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 $850 million to $870 million, with
between $160 million and $170 million for the first quarter,” said
Mr. King.
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 March 1, 2024 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, 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 December 31, 2023 filed with
the Securities and Exchange Commission, or 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 and Net Debt.
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:Curt
Worthington847.482.2040InvestorRelations@pactivevergreen.com
Pactiv Evergreen Inc.Condensed Consolidated
Statements of Income (Loss)(in millions, except per share
amounts)(unaudited) |
|
|
For the Three Months Ended |
|
|
For the Years Ended December 31, |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
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 Pactiv Evergreen Inc. common
shareholders |
|
$ |
21 |
|
|
$ |
29 |
|
|
$ |
26 |
|
|
$ |
(223 |
) |
|
$ |
318 |
|
Earnings (loss) per
share attributable to Pactiv Evergreen Inc. common
shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Pactiv Evergreen Inc.Condensed Consolidated
Balance Sheets(in
millions)(unaudited) |
|
|
As of December 31,2023 |
|
|
As of September 30,2023 |
|
|
As of December 31,2022 |
|
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 |
|
Goodwill |
|
|
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 Pactiv Evergreen Inc. common
shareholders |
|
|
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 |
|
Pactiv Evergreen Inc.Condensed Consolidated
Statements of Cash Flows(in
millions)(unaudited) |
|
|
For the Three Months Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
June 30,2023 |
|
|
March 31,2023 |
|
|
December 31,2022 |
|
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 $7 million of cash and cash equivalents classified
as current assets held for sale as of September 30, 2022. During
the year ended December 31, 2023, we revised the presentation of
restricted cash balances on our condensed consolidated statements
of cash flows to include restricted cash in the beginning and
ending balances for all periods presented. As of December 31, 2023,
our condensed consolidated balance sheet included $2 million and
$21 million of restricted cash classified as current and noncurrent
assets, respectively. For all other periods presented, our
condensed consolidated balance sheet included $24 million of
restricted cash classified as noncurrent assets.
Pactiv Evergreen Inc.Reconciliation of Reportable
Segment Net Revenues to Total Net Revenues(in
millions)(unaudited) |
|
|
For the Three Months Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
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 |
|
Pactiv Evergreen Inc.Reconciliation of Reportable
Segment Adjusted EBITDA to Adjusted EBITDA(in
millions)(unaudited) |
|
|
|
For the Three Months Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
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 |
|
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 |
|
|
For the Years Ended December 31, |
|
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
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 $274 million of
accelerated depreciation expense for the year ended December 31,
2023.(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 December 31, 2023, September 30, 2023
and December 31, 2022, the tax effect of the adjustments were
income of $0.05 per diluted share, income of $0.03 per diluted
share and income of $0.02 per diluted share, respectively. For the
years ended December 31, 2023 and 2022, the tax effect of the
adjustments were income of $0.52 per diluted share and a loss of
$0.39 per diluted share, respectively.
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