Second Quarter Highlights
(all comparisons made to the March 2020 quarter)
|
•
|
Net sales of $3.4 billion, a 13 percent increase |
•
|
5 percent organic volume growth
|
•
|
Operating income up 17 percent to $333 million
|
•
|
Operating EBITDA up 9 percent to $590 million
|
•
|
Net income per diluted share up 40 percent to $1.32
|
•
|
Adjusted net income per diluted share increase of 34 percent to $1.59
|
•
|
Raising fiscal 2021 operating EBITDA guidance from prior mid-point by $50 million to $2.25 billion
|
•
|
Increasing fiscal 2021 organic volume growth assumption from 4 percent to now 5 percent
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
| |||||||||||||||
April 3,
2021
|
March 28,
2020
|
April 3,
2021
|
March 28,
2020
| |||||||||||||
Net sales
|
$
|
3,370
|
$
|
2,975
|
$
|
6,506
|
$
|
5,791
| ||||||||
Costs and expenses:
| ||||||||||||||||
Cost of goods sold
|
2,706
|
2,391
|
5,224
|
4,687
| ||||||||||||
Selling, general and administrative
|
220
|
204
|
461
|
433
| ||||||||||||
Amortization of intangibles
|
73
|
77
|
147
|
152
| ||||||||||||
Restructuring and transaction activities
|
38
|
19
|
37
|
36
| ||||||||||||
Operating income
|
333
|
284
|
637
|
483
| ||||||||||||
Other expense, net
|
6
|
-
|
31
|
13
| ||||||||||||
Interest expense, net
|
84
|
111
|
181
|
229
| ||||||||||||
Income before income taxes
|
243
|
173
|
425
|
241
| ||||||||||||
Income tax expense
|
62
|
47
|
114
|
68
| ||||||||||||
Net income
|
$
|
181
|
$
|
126
|
$
|
311
|
$
|
173
| ||||||||
Net income per share:
| ||||||||||||||||
Basic
|
$
|
1.35
|
$
|
0.95
|
$
|
2.32
|
$
|
1.31
| ||||||||
Diluted
|
1.32
|
0.94
|
2.28
|
1.29
| ||||||||||||
Outstanding weighted-average shares: (in millions)
| ||||||||||||||||
Basic
|
134.3
|
132.4
|
133.9
|
132.4
| ||||||||||||
Diluted
|
136.8
|
134.1
|
136.6
|
134.2
| ||||||||||||
April 3, 2021
|
September 26, 2020
| |||||||
Assets:
| ||||||||
Cash and cash equivalents
|
$
|
843
|
$
|
750
| ||||
Accounts receivable, net
|
1,682
|
1,469
| ||||||
Inventories
|
1,560
|
1,268
| ||||||
Other current assets
|
230
|
330
| ||||||
Property, plant, and equipment, net
|
4,675
|
4,561
| ||||||
Goodwill, intangible assets, and other long-term assets
|
8,273
|
8,323
| ||||||
Total assets
|
$
|
17,263
|
$
|
16,701
| ||||
Liabilities and Stockholders' Equity:
| ||||||||
Current liabilities, excluding debt
|
$
|
2,438
|
$
|
2,108
| ||||
Current and long-term debt
|
9,882
|
10,237
| ||||||
Other long-term liabilities
|
2,297
|
2,264
| ||||||
Stockholders' equity
|
2,646
|
2,092
| ||||||
Total liabilities and stockholders' equity
|
$
|
17,263
|
$
|
16,701
|
Two Quarterly Periods Ended
| ||||||||
April 3, 2021
|
March 28, 2020
| |||||||
Cash flows from operating activities:
| ||||||||
Net cash from operating activities
|
638
|
533
| ||||||
Cash flows from investing activities:
| ||||||||
Additions to property, plant, and equipment, net
|
(364
|
)
|
(263
|
)
| ||||
Divestiture of businesses
|
143
|
-
| ||||||
Settlement of net investment hedges
|
-
|
246
| ||||||
Other investing activities
|
-
|
(10
|
)
| |||||
Net cash from investing activities
|
(221
|
)
|
(27
|
)
| ||||
Cash flows from financing activities:
| ||||||||
Repayments on long-term borrowings
|
(2,683
|
)
|
(1,484
|
)
| ||||
Proceeds from long-term borrowings
|
2,316
|
1,202
| ||||||
Proceeds from issuance of common stock
|
39
|
3
| ||||||
Debt financing costs
|
(16
|
)
|
(17
|
)
| ||||
Net cash from financing activities
|
(344
|
)
|
(296
|
)
| ||||
Effect of currency translation on cash
|
20
|
(7
|
)
| |||||
Net change in cash and cash equivalents
|
93
|
203
| ||||||
Cash and cash equivalents at beginning of period
|
750
|
750
| ||||||
Cash and cash equivalents at end of period
|
$
|
843
|
$
|
953
|
Quarterly Period Ended April 3, 2021
| ||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
| ||||||||||||||||
Net sales
|
$
|
1,060
|
$
|
731
|
$
|
781
|
$
|
798
|
$
|
3,370
| ||||||||||
Operating income
|
$
|
59
|
$
|
77
|
$
|
114
|
$
|
83
|
$
|
333
| ||||||||||
Depreciation and amortization
|
87
|
54
|
42
|
29
|
212
| |||||||||||||||
Restructuring and transaction activities (1) |
38
|
-
|
-
|
-
|
38
| |||||||||||||||
Other non-cash charges (2) |
2
|
2
|
1
|
2
|
7
| |||||||||||||||
Operating EBITDA
|
$
|
186
|
$
|
133
|
$
|
157
|
$
|
114
|
$
|
590
| ||||||||||
Quarterly Period Ended March 28, 2020
| ||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
| ||||||||||||||||
Net sales
|
$
|
970
|
$
|
633
|
$
|
644
|
$
|
728
|
$
|
2,975
| ||||||||||
Operating income
|
$
|
53
|
$
|
69
|
$
|
66
|
$
|
96
|
$
|
284
| ||||||||||
Depreciation and amortization
|
79
|
60
|
46
|
28
|
213
| |||||||||||||||
Restructuring and transaction activities (1) |
14
|
3
|
1
|
1
|
19
| |||||||||||||||
Other non-cash charges (2) |
20
|
1
|
-
|
2
|
23
| |||||||||||||||
Operating EBITDA
|
$
|
166
|
$
|
133
|
$
|
113
|
$
|
127
|
$
|
539
|
(1) |
The current quarter primarily includes a loss on the sale of a divested businesses along with transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes transaction activity costs related to the RPC acquisition.
|
(2) |
Other non-cash charges for the March 2021 quarter primarily include stock compensation expense of $7 million. The prior year quarter primarily includes a $19 million inventory step-up related to the RPC acquisition and $5 million of stock compensation expense.
|
Quarterly Period Ended
|
Four Quarters Ended
| |||||||||||
April 3, 2021
|
March 28, 2020
|
April 3, 2021
| ||||||||||
Net income
|
$
|
181
|
$
|
126
|
$
|
712
| ||||||
Add: other expense, net
|
6
|
-
|
49
| |||||||||
Add: interest expense, net
|
84
|
111
|
387
| |||||||||
Add: income tax expense
|
62
|
47
|
200
| |||||||||
Operating income
|
$
|
333
|
$
|
284
|
$
|
1,348
| ||||||
Add: non-cash amortization from 2006 private sale
|
6
|
6
|
24
| |||||||||
Add: restructuring and transaction activities (1) |
38
|
19
|
63
| |||||||||
Add: other non-cash charges (2) |
7
|
23
|
42
| |||||||||
Adjusted operating income (7) |
$
|
384
|
$
|
332
|
$
|
1,477
| ||||||
Add: depreciation
|
139
|
136
|
548
| |||||||||
Add: amortization of intangibles (3) |
67
|
71
|
271
| |||||||||
Operating EBITDA (7) |
$
|
590
|
$
|
539
|
$
|
2,296
| ||||||
Add: unrealized synergies and divestiture (4) |
(8
|
)
| ||||||||||
Adjusted EBITDA (7) |
$
|
2,288
|
Cash flow from operating activities
|
$
|
1,635
| ||
Net additions to property, plant, and equipment
|
(684
|
)
| ||
Free cash flow (7) |
$
|
951
| ||
Net income per diluted share
|
$
|
1.32
|
$
|
0.94
| ||||||||
Other expense, net
|
0.04
|
-
| ||||||||||
Non-cash amortization from 2006 private sale
|
0.04
|
0.05
| ||||||||||
Restructuring and transaction activities
|
0.28
|
0.14
| ||||||||||
Other non-cash charges (5) |
-
|
0.14
| ||||||||||
Income tax impact on items above (6) |
(0.09
|
)
|
(0.08
|
)
| ||||||||
Adjusted net income per diluted share (7) |
$
|
1.59
|
$
|
1.19
|
Estimated
Fiscal 2021
| ||||||||||||
Cash flow from operating activities
|
$
|
1,575 - $1,675
| ||||||||||
Additions to property, plant, and equipment
|
(700
|
) | ||||||||||
Free cash flow (7) |
$
|
875 - $975
| ||||||||||
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Disclaimer
Berry Global Group Inc. published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 12:54:05 UTC.