7thAnnual Laguna Conference
Laguna, California
September 11, 2019
Sealed Air ®NYSE:SEE
Ted Doheny, President & CEO
Lori Chaitman, VP Investor Relations
© 2019 Sealed Air
Safe Harbor and Regulation G Statement
This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition and results of operations. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" and similar references to future periods. All statements other than statements of historical facts included in this presentation regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings. The following are important factors that we believe could cause actual results to differ materially from those in our forward looking statements: global economic and political conditions, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, consumer preferences, the effects of animal and food-related health issues, pandemics, changes in energy costs, environmental matters, the success of our restructuring activities, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, the tax benefit associated with the Settlement agreement (as defined in our most recent Annual Report on Form 10-K), regulatory actions and legal matters, and the other information referenced in the "Risk Factors" section appearing in our most recent Annual Report on Form 10-K, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by us is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Our management uses non-U.S. GAAP financial measures to evaluate the Company's performance, which exclude items we consider unusual or special items. We believe the use of such financial measures and information may be useful to investors. We believe that the use of non-U.S. GAAP measures helps investors to gain a better understanding of core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. Please see Sealed Air's August 2, 2019 earnings press release and the appendix of this presentation for important information about the use of non-U.S. GAAP financial measures relevant to this presentation, including applicable reconciliations to U.S. GAAP financial measures. Information reconciling forward-looking U.S. GAAP measures to non-U.S. GAAP measures is not available without unreasonable effort.
Website Information
We routinely post important information for investors on our website, www.sealedair.com, in the "Investors" section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
© 2019 Sealed Air | 2
Vision
Strategies
Transforming Sealed Air from the best in specialty packaging … to a world-class company servicing global packaging
Createprofitable growth
DriveSEE operational excellence Developa high performance culture
Deliversustainable long-term value to our shareholders and society
Growth | Earnings Power | Operating Leverage | Return on Capital | |
2019 | ~ $4.85B Net Sales | $950 - $960M Adj. EBITDA | 40% +Profit / Growth ratio | 15%ROIC* |
Outlook | 5% constant dollar | 19.6 - 19.8% margin | More than doubled from 2018 | Invest capital > cost of capital |
Above market of 2 - 2.5% | Top among peer set | World-class leverage | ||
Tactics & | Reinvent SEE ... from Innovate to Solve ... with the power of One SEE |
Actions | |
* ROIC: net adj operating profit after tax / total capital | © 2019 Sealed Air | 3 |
Reinvent SEE Delivering Double Digit Earnings Power
Solid H1 2019 results against macro headwinds, closed APS acquisition
Sales Growth+4% constant dollar
Food +4%, increased demand for fresh proteins, both local consumption & exports Protective +3%, acquisitions & value-added eCommerce offset soft industrial Increased adoption of innovative sustainable packaging for fresh food & fulfillment markets
Earnings GrowthAdj. EBITDA +7% as reported, +11% constant dollar
EBITDA growth driven by Reinvent SEE & operating efficiencies
Margin expanded 140 bps to 19.9%
Adjusted EPS increased 22% vs H1 2018
APS Acquisitioncompleted Aug. 2019 for $510 M on a cash and debt-free basis EV / 2018 Adj. EBITDA multiple 8x, net of 2021 run-rate synergies & tax benefits
Industry leading growth with disruptive innovations, strong earnings, driving world-class returns
© 2019 Sealed Air | 4
Leading Packaging Industry to Sustainable Future
Best products, right price, make them sustainable
Our 2025 Pledge
100% Recyclable or Reusable
How2Recycle label to eCommerce
Curbside recyclable food packaging
50%+ Recycled & Renewable Content
Darfresh®PET material
> 90% post-consumer recycled content
Bubble Wrap®Mailers, Fill-Air®, EarthAware®
> 90% post-industrial recycled content
EcoPureTM, PlanticTM
Plant based renewable materials
Leading with Sustainability
CEO-led Alliance to End Plastic Waste
Exceeding all internal facility sustainability objectives
SEE Sustainability Metrics
Achieving World-Class Performance
Internal SEE | % Progress Against |
% Goal Achieved | 2025 Pledge |
© 2019 Sealed Air | 5
Create Value Around the World
Expanding our industry-leading specialty packaging solutions to new markets & geographies
One SEE | Food | Protective | |||||||||||||||||||||||
5 % | 7 % | 1 % | |||||||||||||||||||||||
15 % | 17% | ||||||||||||||||||||||||
15 % | |||||||||||||||||||||||||
2018 Net Sales | $4.7 B 58 %% | $2.9 B | 56 % | 21 % | $1.8 B | 61 % | |||||||||||||||||||
22 % | |||||||||||||||||||||||||
22 % | |||||||||||||||||||||||||
North America | Europe, Middle East, Africa | Asia Pacific | South America | ||||||||||||||||||||||
Food Packaging | Protective Packaging | ||||||||||||||||||||||||
Fresh Red Meat | Industrial | ||||||||||||||||||||||||
39 % | 34 % | ||||||||||||||||||||||||
Smoked & Processed Meats | e-Commerce | ||||||||||||||||||||||||
16 % | 34 % | ||||||||||||||||||||||||
Poultry | Electronic | ||||||||||||||||||||||||
13 % | 17 % | ||||||||||||||||||||||||
Dairy Solids | Consumer Package Goods | ||||||||||||||||||||||||
12 % | 7 % | ||||||||||||||||||||||||
Other | Biothermal, Pharma, other | ||||||||||||||||||||||||
10 % | 5 % | ||||||||||||||||||||||||
Fluids & Liquids | Transportation | ||||||||||||||||||||||||
7 % | 3 % | ||||||||||||||||||||||||
Seafood & Protein Alternatives | Other | ||||||||||||||||||||||||
<1 % | |||||||||||||||||||||||||
3 % | |||||||||||||||||||||||||
© 2019 Sealed Air | 6 | |||||||||||||||||||||||||
Specialty Food Packaging Solutions
Innovative solutions - Automated equipment, services and materials
Automated Vacuum Chamber System
Fluids Packaging
Food service rigid replacement
Our specialty food packaging solutions
improve access to a safer, higher quality and
more sustainable food and beverage supply chain. Businesses and brands rely on our packaging innovation and expertise to improve food safety, extend shelf life and drive operational efficiency.
FlexPrepTM
Barrier Bag | |||
Condiment dispensing solution | |||
For bone-in | proteins |
Optidure ®
Barrier Beef Bag
Darfresh ®10K
Darfresh ®On Tray
Fresh Seafood Packaging
Case-Ready Packaging | © 2019 Sealed Air | 7 |
Specialty Food Packaging Solutions
Growth initiatives fueling above market performance
Automated Equipment
Automation & integration
SEE Smart Service
Address labor shortage
Increase productivity
Zero-Harm
Flawless quality
Material Innovations
& Sustainable Solutions
Case ready solutions
Advanced lidding solutions
Renewable materials
Post-consumer recycled trays
Zero film scrap solutions
High-performance,thin-gauge films
Adjacent Markets
Fluids / Foodservice
Fish & Seafood
Protein Alternatives
Ready Meals
Water
> $30 B Addressable Fresh Food Packaging Market, 2019 - 2021 CAGR: 2 - 4%
© 2019 Sealed Air | 8
Unleashing Cryovac®Technology for Seafood Industry
Accelerates growth in new packaging market with disruptive innovation
Solving Critical Customer Challenges
Seafood contributes to ~35% of global protein spoilage
FDA regulated with stringent packaging requirements
Significantly extend shelf-life to > 20 days from 3 days on ice
Preserve freshness, better presentation
Opportunity to simplify global logistics supply chain
Proprietary Technology
Dramatically reducing carbon footprint by 50%
Leak-resistant solutions
Exceeds FDA oxygen permeability requirements
Maintains bright red color of fresh tuna without chemical treatment
SEE patented solutions
Sealed Air Opportunity > $1 B Packaging Market
Fastest growing protein: Salmon, Tilapia, Tuna … > 4% CAGR globally
Low packaging penetration < 40%
© 2019 Sealed Air | 9
Innovative solutions - Automated equipment, services and materials
Our specialty protective packaging solutions | ||||||
are designed to eliminate waste and minimize | ||||||
product damage throughout the global supply | ||||||
TempGuard ® | chain. Businesses rely on our packaging | |||||
Temperature assurance for eFood | ||||||
innovation and expertise to reduce wasted | ||||||
Paper Systems | material, energy, space, time, and labor. | |||||
Sustainable Void-fill | ||||||
StealthWrap ®
Instapak ®
Korrvu ®
100% recycled content
Bubble Wrap ® | Automated SidePouch ® | system |
© 2019 Sealed Air | 10 | |
On-Demand system |
Specialty Protective Packaging Solutions
Growth initiatives to fuel above market performance
Automated Equipment | Material Innovations | Adjacent Markets |
& Sustainable Solutions |
Fulfillment velocity, Autobag ®& SidePouch ® | Recycled content materials | eFood |
Cube optimization, I-Pack® | SIOC & DIM weight packaging | ePharma |
Automated mailer, FloWrap™ | Renewable & biodegradable films | Life sciences |
Eliminate corrugated box, Stealthwrap ™ | SEE paper systems | |
Hospital drug dispensing, Autobag ®& Robotics | Re-usable solutions | |
Reinvent Instapak ®, 50% carbon footprint reduction |
> $20 B Addressable Protective Packaging Market, 2019 - 2021 CAGR: 1 - 3%
© 2019 Sealed Air | 11
Acquisition of Automated Packaging Systems
Accelerates growth in automated equipment, services, engineering & sustainable offerings
Business Overview
Autobag®machines, pre-opened bags roll, EarthAware®recycled film Expands presence in fulfillment, industrial, pharma & eFood
2018 total net sales of $290 M and Adj. EBITDA of $40 M
Transaction Overview
Closed on Aug. 1, '19. $510 M on a cash & debt-free basis Purchase Enterprise Value of $440 M after tax benefits Funded with new three-year LIBOR +112.5 bps $475 M term loan ~ $15 M run-rate productivity synergies by end of 2021
8x EV / 2018 Adj. EBITDA (net of synergies and tax benefits)
2018 Sales
Equipment 16%
$290 M
Service & Parts 8%
Materials 76%
Europe 22%
$290 M
Rest of World 3%
North America 75%
Automation driving productivity, zero-harm, flawless quality and savings
© 2019 Sealed Air | 12
eFood Specialty Packaging
Leverage One SEE's innovative automated equipment, services and materials for eFood
Fast Growing Channel | TempTrip ®services |
10x faster market growth Surging online grocery sales 20% + CAGR
Customer Challenges
New regulatory frameworks
Complex cold-chain requirements
Food safety and quality assurance
Sustainable packaging
Insulative Packaging | Case Ready Packaging |
Automated Fulfilment
Traceability
- Cold Chain Management
Future
of Grocery
Home
Delivery
© 2019 Sealed Air | 13
Capital Allocation Strategy; Invest in Profitable Growth & Productivity
Generate strong margins, ROIC and Free Cash Flow conversion
Investments
High-growth geographies, markets, products and technologies
"Automated" acquisition completed August 1, 2019
Digital platforms for customer service, automation & growth
Sustainable solutions & geographic expansion
Convert rigid container to flexible packaging
Digital printing process technology
Expanded integrated fabrication and design capabilities with acquisitions of Austin Foam in 2018 and Fagerdala in 2017
2019E Capital expenditures ~ $210 M (~ 4% of Net Sales)
Exceed our profitable growth & ROIC targets
Investing in breakthrough processes and automation
Return Capital to Shareholders
Share Repurchase
Repurchased 1.56 M shares ($67 M)
from January 1, 2019 through June 30, 2019 $708 M remaining under current authorization
Dividends
Cash dividend $25M in Q2 2019 ($0.16 per share)
FCF Conversion Rate* Target | ~ 40 % |
Net Debt / Adj. EBITDA Ratio Target | 3.5x - 4x |
2019 E Net Debt / Adj. EBITDA Ratio | 3.8x |
* FCF Conversion Rate defined as Free Cash Flow / Adj. EBITDA, excluding restructuring
© 2019 Sealed Air | 14
2019 Outlook
Executing Reinvent SEE and integrating Automated Packing Systems acquisition
Net Sales | Adj. EBITDA | Adj. EPS | Free Cash Flow |
~ $4.85 B | $950 M - $960 M | $2.70 - $2.80 | ~ $180 M |
As Reported: ~ 2 % | As Reported: 7 - 8 % | D&A: ~ ($185 M) | Capex: ($210 M) |
Unfavorable Currency: ~ ($130 M) | Unfavorable Currency: ~ ($25 M) | Int. Exp., Net: ~ ($190 M) | Int. Payments, Net: ($190 M) |
Acquisitions: $190 M | APS: $10 - $12 M, | Adj. Tax Rate: 26 % | Tax Payments: ($115 M) |
Product Care: $180 M | including a one-time inventory | ||
Food Care: $10 M | purchase accounting charge of $6 M | APS: ($0.07) per share | Restructuring: ($115 M) |
Constant Dollar Growth: ~ 5 % | Diluted Shares: 155 M | Novipax Settlement: ($59 M) | |
Product Care ~ 7% | |||
Food Care: ~ 4 % | APS Deferred Incentive Comp: ($20M) | ||
© 2019 Sealed Air | 15
The 4P'SSMof Reinvent SEETM
Increasing efficiency, unleashing growth, creating value
Performance: World-class
Drive growth above markets we serve
Industry leading margins with 40%+ operating leverage
ROIC 15%, invest capital > cost of capital
People: High performance culture
Develop, retain and attract the best and brightest
Recognizing employees who save our customers the most money
Power of acting as One SEE
Products: Best products, right price, make them sustainable
Processes: SEE Operational Excellence
Zero Harm, on-time every time, productivity > inflation, flawless quality
Eliminate waste, simplify process, automate, remove people from harm
Easy to do business with, make every customer a reference
Sustainability: Making our world better than we found it
Sealed Air ®
My Sealed Air
SEEAcademy
SEEBusiness System
SEESmart Service | SEE OpEx |
SealedAir.Com | SEEAutomation |
We are in business to protect, to solve critical packaging challenges, and to leave our world better than we found it
© 2019 Sealed Air | 16
We are in business to protect,
to solve critical packaging challenges,
and to leave our world better than we found it.
© 2019 Sealed Air | 17
Q2 2019 YoY Regional Sales Performance
Constant dollar +4%, led by growth in North America and South America
*North | Europe, | ||||||
Middle East | Asia | South | |||||
America | & Africa | Pacific | America | ||||
As reported % Change | 4 % | - 6 % | - 4 % | 2 % | |||
Constant Dollar % Change | 4 % | - 0.3 % | 1 % | 30 % | |||
% of Sales | 59 % | 21 % | 15 % | 5 % |
Q2 2019 Net Sales: $1.2 B
As reported % Change: + 1 %
Constant Dollar % Change: + 4 %
* North America includes U.S. Canada, Mexico and Central America | 19 |
H1 2019 Regional Sales Performance
Constant dollar +4%, led by growth in North America and South America
*North | Europe, | ||||||
Middle East | Asia | South | |||||
America | & Africa | Pacific | America | ||||
As reported % Change | 3 % | - 7 % | - 4 % | - 3 % | |||
Constant Dollar % Change | 4 % | - 0.4 % | 2 % | 27 % | |||
% of Sales | 59 % | 21 % | 15 % | 5 % |
H1 2019 Net Sales: $2.3 B
As reported % Change: - 1 %
Constant Dollar % Change: + 4 %
* North America includes U.S. Canada, Mexico and Central America | © 2019 Sealed Air | 20 |
2019 YoY Sales Trends
North America and South America volume growth led by strength in Food Care
As Reported | Constant $ | Volume (%) | ||||||
Growth (%) | Growth (%) | Excl. Acq. | ||||||
Q1 | Q2 | Q1 | Q2 | Q1 | Q2 | |||
Food Care | (2) | (0.3) | 3 | 4 | 0.4 | 2 | ||
Product Care | (0.5) | 2 | 2 | 4 | (4) | (3) | ||
Sealed Air | (2) | 1 | 3 | 4 | (1) | 1 |
North America | 2 | 4 | 3 | 4 | (2) | 2 |
EMEA | (9) | (6) | (1) | (0.3) | (1) | (1) |
Asia Pacific | (3) | (4) | 3 | 1 | 0.3 | (4) |
South America | (7) | 2 | 25 | 30 | (0.1) | 5 |
Sealed Air | (2) | 1 | 3 | 4 | (1) | 1 |
Price (%)
Q1 Q2
3 1
1 1
- 1
- (0.4)
- 0.3
0.1 0.1
25 25
2 1
21
Total Company Q2 2019 Net Sales & Adj. EBITDA
Constant dollar Adj. EBITDA up 12% on 4% sales growth
($ millions) | +1% Net Sales | ||||||||||||||
30 | |||||||||||||||
5 | 12 | 1,161 | |||||||||||||
1,155 | |||||||||||||||
Constant Dollar +4% | -41 | ||||||||||||||
Q2 2018 | Volume | Price | Acq. | FX | Q2 2019 |
+9% Adj. EBITDA | ||||||||||||||
17 | 1 | |||||||||||||
237 | ||||||||||||||
19 | ||||||||||||||
237 | ||||||||||||||
20.4% Margin | ||||||||||||||
218 | -12 | |||||||||||||
1 | -7 | |||||||||||||
218 | ||||||||||||||
18.8% Margin |
Constant Dollar +12%
Q2 2018 | Volume | * P/C Spread * Restr. Savings | Acq. | * Oper. Costs | FX | Q2 2019 |
* Reinvent SEE benefits include: $8 M P/C Spread, $17 M Restructuring Savings, $27 M Operating Costs | © 2019 Sealed Air | 22 |
Total Company H1 2019 Net Sales & Adj. EBITDA
Constant dollar Adj. EBITDA up 11% on 4% sales growth
($ millions) | -1% Net Sales | ||||||||||||||||||||||||||||||
55 | |||||||||||||||||||||||||||||||
37 | |||||||||||||||||||||||||||||||
2,286 | 2,274 | ||||||||||||||||||||||||||||||
-11 | -93 | ||||||||||||||||||||||||||||||
Constant Dollar +4% | |||||||||||||||||||||||||||||||
H1 2018 | Volume | Price | Acq. | FX | H1 2019 | ||||||||||||||||||||||||||
+7% Adj. EBITDA | |||||||||||||||||||||||||||||||
29 | 1 | ||||||||||||||||||||||||||||||
41 | 453 | ||||||||||||||||||||||||||||||
453 | |||||||||||||||||||||||||||||||
422 | -18 | 19.9% Margin | |||||||||||||||||||||||||||||
422 | -17 | ||||||||||||||||||||||||||||||
18.5% Margin | |||||||||||||||||||||||||||||||
-5
Constant Dollar +11%
H1 2018 | Volume | * P/C Spread * Restr. Savings | Acq. | * Oper. Costs | FX | H1 2019 |
* Reinvent SEE benefits include: $14 M P/C Spread, $29 M Restructuring Savings, $32 M Operating Costs | © 2019 Sealed Air | 23 |
Food Care Q2 & H1 2019 Net Sales & Adj. EBITDA
Constant dollar Q2 Adj. EBITDA up 19% on 4% sales growth
($ millions) | |||||||||||||||||||||||||||||
-0.3% Net Sales | -1% Net Sales | ||||||||||||||||||||||||||||
17 | 9 | 3 | 20 | 30 | 3 | ||||||||||||||||||||||||
1,409 | |||||||||||||||||||||||||||||
713 | 711 | 1,391 | |||||||||||||||||||||||||||
Constant Dollar +4% | -31 | -71 | |||||||||||||||||||||||||||
Constant Dollar +4% | |||||||||||||||||||||||||||||
Q2 2018 Volume | Price | Acq. | FX | Q2 2019 | H1 2018 Volume | Price | Acq. | FX | H1 2019 | ||||||||||||||||||||
+15% Adj. EBITDA | +11% Adj. EBITDA |
10 | 2 | 156 | 17 | 299 | |||||||||||
21.9% Margin | |||||||||||||||
8 | 156 | 26 | -0.3 | 21.5% Margin | |||||||||||
135 | 6 | -0.3 | -5 | 270 | -7 | 299 | |||||||||
6 | -13 | ||||||||||||||
19.0% Margin | 19.2% Margin | ||||||||||||||
135 | 270 | ||||||||||||||
Constant Dollar +19% | Constant Dollar +15% | ||||||||||||||
Q2 2018 | Volume | P/C | Restr. | Acq. | Oper. | FX | Q2 2019 | H1 2018 | Volume | P/C | Restr. | Acq. | Oper. | FX | H1 2019 |
Spread | Savings | Costs | Spread | Savings | Costs | © 2019 Sealed Air | 24 | |||||||||
Product Care Q2 & H1 2019 Net Sales & Adj. EBITDA
Constant dollar Q2 Adj. EBITDA up 9% on 4% sales growth
($ millions)
+2% Net Sales | +1% Net Sales |
26 | 450 | 877 | 52 | 883 | |||||||
442 | 2 | -9 | 7 | -22 | |||||||
-11 | -31 | ||||||||||
Constant Dollar +4% | Constant Dollar +3% | ||||||||||
Q2 2018 | Volume | Price | Acq. | FX | Q2 2019 | H1 2018 | Volume | Price | Acq. | FX | H1 2019 |
+7% Adj. EBITDA | +1% Adj. EBITDA |
11 | 7 | 1 | 84 | 157 | 11 | 1 | 159 | ||||||||
15 | |||||||||||||||
18.7% Margin | 18.0% Margin | ||||||||||||||
79 | 84 | 17.9% Margin | |||||||||||||
17.8% Margin | -8 | -2 | 157 | -9 | -4 | ||||||||||
79 | |||||||||||||||
-4 | -12 | ||||||||||||||
Constant Dollar +9% | Constant Dollar +4% | ||||||||||||||
Q2 2018 | Volume | P/C | Restr. | Acq. | Oper. | FX | Q2 2019 | H1 2018 | Volume | P/C | Restr. | Acq. | Oper. | FX | H1 2019 |
Spread | Savings | Costs | Spread | Savings | Costs | 25 | |||||||||
Free Cash Flow
Solid H1 cash generation
($ millions) | Six Months Ended June 30, | ||||
2019 | 2018 | ||||
Adjusted EBITDA | |||||
453 | 422 | ||||
Interest payments, net | (86) | (86) | |||
Payments for Diversey and stranded costs | - | (33) | |||
Reinvent SEE, restructuring & assoc. payments | (49) | (4) | |||
Tax payments | (29) | (97) | |||
Net change in working capital(1) | (63) | (58) | |||
Other Assets/Liabilities | (57) | (107) | |||
Cash flow provided by operations | 169 | 37 | |||
Capital expenditures | (94) | (74) | |||
Free Cash Flow | 75 | (37) |
(1) Includes cash used in/provided by trade receivables, inventory, net and accounts payable | 26 |
U.S. GAAP Summary & Reconciliations
Net Sales
Pre-tax Earnings from Continuing Operations
Net Earnings/(Loss) From Continuing Operations
EPS From Continuing Operations
Effective Tax Rate
Operating Cash Flow
($ millions)
U.S. GAAP Net earnings (loss) from continuing operations
Interest expense, net Income tax provision
Depreciation and amortization, net of adjustments Special items
Restructuring and other charges Other restructuring associated costs
Foreign currency exchange loss due to highly inflationary economies Charges related to the Novipax Settlement Agreement
(Income) charges related to acquisition and divestiture activity Loss (gain) from class-action litigation settlement
Other Special Items Pre-tax impact of Special Items
Non-U.S. GAAP Total Company Adj EBITDA from continuing operations
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
$1.2 billion | $1.2 billion | $2.3 billion | $2.3 billion | ||||||||
$37.8 million | $116.8 million | $132.5 million | $230.3 million | ||||||||
$25.5 million | $83.3 million | $89.8 million | $(124.7) million | ||||||||
$0.16 | $0.52 | $0.58 | $(0.77) | ||||||||
32.5% | 28.7% | 32.2% | 154.1% | ||||||||
$104 million | $70 million | $169 million | $37 million | ||||||||
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
25.5 | 83.3 | 89.8 | (124.7) | ||||||||
43.2 | 44.5 | 88.1 | 86.5 | ||||||||
12.3 | 33.5 | 42.7 | 355.0 | ||||||||
38.0 | 40.7 | 78.2 | 80.9 | ||||||||
29.3 | 7.1 | 36.7 | 15.7 | ||||||||
21.3 | (0.4) | 38.0 | 1.8 | ||||||||
1.3 | - | 2.1 | - | ||||||||
59.0 | - | 59.0 | - | ||||||||
(0.5) | 7.0 | 3.2 | 17.8 | ||||||||
- | 0.1 | - | (12.6) | ||||||||
7.3 | 1.7 | 14.7 | 1.9 | ||||||||
117.7 | 15.5 | 153.7 | 24.6 | ||||||||
452.5 | 422.3 | ||||||||||
236.7 | 217.5 |
© 2019 Sealed Air | 27
U.S. GAAP Summary & Reconciliations
($ millions, except per share data)
U.S. GAAP net earnings (loss) and diluted EPS from continuing operations
Special Items
Non-U.S. GAAP Adjusted net earnings and adjusted diluted EPS from continuing operations
Weighted average number of common shares outstanding - Diluted
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Net | Diluted | Net | Diluted | Net | Diluted | Net | Diluted | ||||||||||||
Earnings | EPS | Earnings | EPS | Earnings | EPS | (Loss)Earnings | EPS | ||||||||||||
$ 25.5 | $ 0.16 | $ 83.3 | $ 0.52 | $ 89.8 | $ 0.58 | $ (124.7) | $ (0.77) | ||||||||||||
99.8 | 0.64 | 19.1 | 0.12 | 127.7 | 0.82 | 312.5 | 1.92 | ||||||||||||
$ 125.3 | $ 0.80 | $ 102.4 | $ 0.64 | $ 217.5 | $ 1.40 | $ 187.8 | $ 1.15 | ||||||||||||
155.3 | 160.6 | 155.3 | 162.5 |
($ millions) | Jun. 30, 2019 |
(unaudited) | |
Total debt | $ 3,588.6 |
Less: cash and cash equivalents | (222.2) |
Net Debt | $ 3,366.4 |
© 2019 Sealed Air | 28
ROIC Calculation
Q2 2019 Trailing Twelve Months | ||
Adjusted EBITDA (Non-GAAP) | $ 920 M | |
Less: Depreciation and Amortization | (156 M) | |
Adjusted Operating Profit | 764 | M |
Adjusted Tax Rate (Non-GAAP) | 26% | |
Tax on Adjusted Operating Profit | (199 M) | |
Net Adjusted Operating Profit After Tax | $ 565M | |
One-year average (Q2 '19 and Q2 '18) | ||
Book value of Equity | $ (357 M) | |
Current and Long-Term Debt | 3,462 | M |
Other Long-Term Liabilities | 660 | M |
Less: Non-Operating Assets* | (202 M) | |
Total Capital | $ 3,563 | M |
Return on Invested Capital | 16% |
* Primarily represents cash balance | © 2019 Sealed Air | 29 |
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Sealed Air Corporation published this content on 11 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2019 09:01:11 UTC