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Yahoo
20-05-2025
- Business
- Yahoo
SEE Q1 Earnings Call: Tariffs, Transformation, and Segment Realignment Shape Outlook
Integrated packaging solutions provider Sealed Air Corporation (NYSE:SEE) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.3% year on year to $1.27 billion. The company expects the full year's revenue to be around $5.3 billion, close to analysts' estimates. Its non-GAAP profit of $0.81 per share was 20.9% above analysts' consensus estimates. Is now the time to buy SEE? Find out in our full research report (it's free). Revenue: $1.27 billion vs analyst estimates of $1.27 billion (4.3% year-on-year decline, 0.5% beat) Adjusted EPS: $0.81 vs analyst estimates of $0.67 (20.9% beat) Adjusted EBITDA: $276.3 million vs analyst estimates of $260.3 million (21.7% margin, 6.2% beat) The company reconfirmed its revenue guidance for the full year of $5.3 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $3.10 at the midpoint EBITDA guidance for the full year is $1.13 billion at the midpoint, above analyst estimates of $1.1 billion Operating Margin: 14.4%, in line with the same quarter last year Free Cash Flow was -$12 million, down from $78 million in the same quarter last year Sales Volumes fell 2% year on year (0.5% in the same quarter last year) Market Capitalization: $4.75 billion Sealed Air's first quarter results reflected ongoing transformation efforts, with management attributing performance to organizational changes and market-focused strategies. CEO Dustin Semach highlighted the completion of the company's supply chain integration into its Food and Protective segments, stating this move was designed to increase adaptability and customer responsiveness. The team also addressed the impact of evolving global trade policies and tariffs, noting that domestic production and USMCA exemptions have minimized direct effects so far. Looking ahead, management reconfirmed full-year guidance, citing confidence in ongoing cost control and productivity initiatives to offset potential volume softness. Semach emphasized the company's focus on controlling 'what we can' amid uncertain demand, particularly in the Protective segment, while leveraging the strengths of the Food segment's product portfolio and global positioning. The leadership team outlined plans to monitor evolving tariff policies, customer sentiment, and macroeconomic trends that could affect the second half of the year. Sealed Air's leadership focused on segment-specific transformation, the evolving tariff landscape, and customer-focused realignment as key themes for the quarter. The deviation from Wall Street's expectations was mainly due to stronger-than-expected cost controls and progress on organizational transformation, which helped offset market volume declines. Segment-Focused Reorganization: Management completed the realignment of supply chain, commercial, and innovation teams into Food and Protective business units, aiming for faster adaptation to market conditions. Tariff Mitigation Efforts: The company actively reviewed its supply chain and product sourcing to address new and potential tariffs, with most direct impacts mitigated through domestic manufacturing and USMCA exemptions. Pricing actions in Food are being taken when exposure remains. Protective Business Turnaround: Leadership discussed ongoing transformation in the Protective segment, including a new go-to-market structure and increased field sales investment. Early results include reduced customer churn in North America and stabilization in EMEA and Asia. Customer Engagement Initiatives: The company intensified direct engagement with customers and distribution partners, using both quantitative feedback and executive outreach to guide improvements and measure satisfaction. These efforts are intended to drive long-term share gains, particularly in segments where Sealed Air lost ground over the past two years. Productivity and Cost Management: CEO Semach and Interim CFO Johnson highlighted ongoing cost takeout and productivity programs as core to margin maintenance. These measures—such as shifting back-office work to lower-cost locations and optimizing production—helped offset unfavorable price realization and volume declines. Management's outlook for the remainder of the year centers on navigating trade policy uncertainty, continued cost discipline, and segment-level transformation to maintain profitability and position for growth. Protective Segment Recovery: The team expects volume declines in Protective to moderate as customer churn from prior years is fully lapped and new commercial strategies take hold, but acknowledged ongoing market caution and low demand visibility. Food Segment Stability: Management projects relative stability in Food, supported by resilient demand in retail and industrial markets outside the U.S. and product diversity that allows for flexibility if consumer trade-downs accelerate domestically. Tariff and Supply Chain Adaptation: The company believes its domestic production focus and supply chain adjustments will help limit tariff-related risks, but will continue to monitor potential downstream effects and adjust pricing as needed. FX trends and further operational efficiencies may also buffer unexpected headwinds. Ghansham Panjabi (Baird): Asked about progress in Protective's volume trends and customer churn. CEO Semach explained that most large customer churn is now fully lapped, with sequential improvement expected as transformation initiatives mature. George Staphos (BofA Securities): Inquired about balancing cost takeout with improving customer satisfaction. Semach described increased field sales investment and back-office relocation as strategies for driving efficiency without sacrificing customer engagement. Matt Roberts (Raymond James): Queried about price realization and competitive pressures in each segment. Management indicated price was flat overall, with negative realization in Protective due to competitive dynamics and supply overhang, particularly following Amazon's exit from a key line. Josh Spector (UBS): Asked for specifics on Protective volume assumptions and equipment sourcing risks from tariffs. Semach stated volume declines will lessen in the second half, with minimal direct tariff impact due to supply chain adjustments and domestic sourcing. Stefan Diaz (Morgan Stanley): Sought clarity on holding guidance amid trade policy changes and international exposure. Management noted that guidance reflects expected modest volume softness offset by improved FX, with most business structured for domestic consumption to reduce tariff exposure. In upcoming quarters, the StockStory team will be watching (1) whether the Protective segment's transformation leads to sustained improvements in volume and customer retention, (2) how effectively Sealed Air manages evolving tariff and trade policy impacts, especially with ongoing global uncertainty, and (3) the Food segment's ability to maintain stability amid potential consumer trade-downs and changing protein demand. The success of further productivity initiatives and operational efficiencies will also be a key focus. Sealed Air currently trades at a forward P/E ratio of 10.6×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
25-02-2025
- Business
- Yahoo
Sealed Air Reports Q4 and Full Year 2024 Results and Provides 2025 Outlook
Fourth Quarter and Full Year 2024 Highlights Dustin Semach promoted to Chief Executive Officer Completed the full reorganization into two market-focused businesses, Food and Protective Food volume growth driven by competitive share gains and continued end-market demand Protective portfolio rebalance and enhanced customer focus continues Cost take-out generated $89 million of incremental cost savings for full-year 2024 Net leverage ratio reduced to 3.6x with maintained focus on deleveraging the balance sheet Providing our financial outlook for 2025 CHARLOTTE, N.C., Feb. 25, 2025 /PRNewswire/ -- Sealed Air Corporation (NYSE: SEE) today reported financial results for the fourth quarter and full year 2024 and provided its 2025 outlook. "During the fourth quarter, we completed the reorganization into two market-focused businesses, Food and Protective, and had a strong finish to the year," said Dustin Semach, Sealed Air's President and CEO. "We exceeded our expectations across Adjusted EBITDA, Adjusted EPS and Free Cash Flow, reflecting improved discipline in fundamentals. I want to express my deep gratitude to our 16,400 plus Sealed Air team members for their commitment to our transformation and their tireless efforts in solving our customers' most critical packaging challenges." "With the foundation now firmly in place, we are focused on maximizing the potential of each business based on their respective end-markets and portfolios. We are accelerating the momentum in Food by expanding further into higher growth end-markets with our case ready and fluids solutions and continuing to stabilize Protective. In parallel, we are continuing to streamline our operations and drive further productivity across the company. As a result, we are targeting growth and margin expansion in 2025. We are focused on accelerating the pace of execution to improve the outcomes for our customers and maximize value for our shareholders," said Semach. ($ millions, except per share data) GAAP Results Fourth QuarterFull Year2024 2023 Reported △% Constant Dollar △%2024 2023 Reported △% Constant Dollar △% Net Sales $1,373 $1,378 (0.3) % 0.9 %$5,393 $5,489 (1.8) % (1.1) % Net Earnings $— $125 (100.3) % $270 $339 (20.6) %Diluted EPS $0.00 $0.86 (100.0) % $1.84 $2.34 (21.4) %Cash Flow from Operations$728 $516 41.0 % Non-GAAP Results Fourth QuarterFull Year2024 2023 Reported △%2024 2023 Reported △% Adjusted EBITDA $271 $274 (1.3) %$1,111 $1,107 0.4 % Adjusted Net Earnings $110 $127 (13.9) %$459 $461 (0.5) % Adjusted Diluted EPS $0.75 $0.88 (14.8) %$3.14 $3.18 (1.3) % Free Cash Flow(1) $454 $467 (2.8) % _____________________________ (1) 2023 excludes the impact of $195 million of payments and deposits to resolve certain prior year tax matters. 2024 excludes a $54 million refund received from the IRS during fourth quarter 2024 related to the same tax otherwise stated, all results compare fourth quarter 2024 results to fourth quarter 2023 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported. Financial Highlights Fourth Quarter 2024 Net sales of $1.37 billion was flat as reported in fourth quarter 2024 compared to fourth quarter 2023, with the Food segment increasing 3% and the Protective segment decreasing 7%. Net sales increased $13 million, or 1%, on a constant dollar basis. Volumes increased by $17 million, or 1%. Price had an unfavorable impact of $4 million, or less than 1%. Income tax expense was $85 million, resulting in an effective tax rate of 100.5% in the quarter. This compares to an income tax expense of $(9) million in the prior year, or an effective tax rate of (7.8)%. The current year effective tax rate was unfavorably impacted primarily by the discrete, one-time write-off of a deferred tax asset associated with a legal entity restructuring, whereas the prior year effective tax rate was favorably impacted by the resolution of certain previous years' tax matters. The Adjusted Tax Rate was 28.1% in the quarter, as compared to 18.0% in the prior year. The fourth quarter 2023 Adjusted Tax Rate benefited from the reversal of previously accrued liabilities related to uncertain tax positions. Net loss was less than $1 million, or less than ($0.01) per diluted share, in fourth quarter 2024 as compared to net earnings of $125 million, or $0.86 per diluted share, in fourth quarter 2023. The current quarter results were unfavorably impacted by $110 million of Special Items expense compared to $3 million of Special Items expense in the same quarter of the prior year. The increase in Special Items expense in the current quarter were primarily driven by unfavorable impacts related to income tax items, higher restructuring and other associated costs related to the cost take-out to grow program ("CTO2Grow Program") and an impairment charge associated with a debt investment. Adjusted earnings per diluted share decreased to $0.75, from $0.88 in the prior year, primarily due to higher adjusted tax expense, partially offset by lower interest expense. Adjusted EBITDA was $271 million, or 19.7% of net sales, as compared to $274 million, or 19.9% in the prior year. The decrease in Adjusted EBITDA was primarily due to unfavorable net price realization and lower volume in Protective, partially offset by higher Food volumes. Full Year 2024 Net sales of $5.39 billion decreased 2% as reported for full year 2024 compared to full year 2023, with the Food segment increasing 2% and the Protective segment decreasing 8%. Net sales decreased $61 million, or 1%, on a constant dollar basis. Volumes increased by $35 million, or less than 1%. Price had an unfavorable impact of $119 million, or 2%. Income tax expense was $189 million, resulting in an effective tax rate of 41.2% for the current year. This compares to an income tax expense of $90 million in the prior year, or an effective tax rate of 21.0%. The current year effective tax rate was unfavorably impacted by the discrete, one-time write-off of a deferred tax asset associated with a legal entity restructuring, whereas the prior year effective tax rate was favorably impacted by the resolution of certain previous years' tax matters. The Adjusted Tax Rate was 25.9% for full year 2024, as compared to 23.6% in the prior year. The 2023 Adjusted Tax Rate benefited from the reversal of previously accrued liabilities related to uncertain tax positions. Full year 2024 net earnings were $270 million, or $1.84 per diluted share, as compared to net earnings of $339 million, or $2.34 per diluted share, in full year 2023. The current year results were unfavorably impacted by $189 million of Special Items expense compared to $122 million of Special Items expense in the prior year. The increase in Special Items expense were primarily driven by unfavorable impacts related to income tax items, higher restructuring costs related to the CTO2Grow Program and an impairment charge associated with a debt investment, partially offset by lower Liquibox acquisition related costs. Adjusted earnings per diluted share decreased to $3.14, from $3.18 in the prior year, primarily due to higher adjusted tax expense and higher shares outstanding, partially offset by lower interest expense. Adjusted EBITDA was $1,111 million, or 20.6% of net sales, as compared to $1,107 million, or 20.2% in the prior year. The increase in Adjusted EBITDA was primarily due to lower operating costs driven by productivity benefits as a result of the CTO2Grow Program, partially offset by unfavorable net price realization in Protective. Business Segment Highlights Fourth quarter net sales in Food were $923 million, an increase of 3% as reported compared to fourth quarter 2023. Currency had an unfavorable impact of $15 million, or 2%. On a constant dollar basis, net sales increased $45 million, or 5%. Volumes increased by $44 million, or 5%, with growth in all regions driven by competitive share gains and continued end-market demand. Price had a favorable impact of $2 million. Adjusted EBITDA of $208 million, or 22.5% of net sales, increased 7% from $195 million, or 21.8% of net sales, in the prior year. The increase in Adjusted EBITDA was primarily attributable to higher volumes. Fourth quarter net sales in Protective were $450 million, a decrease of 7% as reported compared to fourth quarter 2023. Net sales were unfavorably impacted by currency fluctuation of $2 million, or less than 1%. On a constant dollar basis, net sales decreased $32 million, or 7%. Volumes decreased by $26 million, or 5%, resulting from continued weakness in our industrial and fulfillment portfolios. Price had an unfavorable impact of $6 million, or 1%. Adjusted EBITDA of $67 million, or 14.8% of net sales, decreased 26% from approximately $90 million, or 18.7% of net sales, in the prior year. The decrease in Adjusted EBITDA was primarily attributable to lower volumes and unfavorable net price realization. Cash Flow and Net Debt Cash flow provided by operating activities during full year 2024 was $728 million, as compared to $516 million during 2023. Capital expenditures were $220 million during full year 2024, as compared to $244 million during 2023. Free cash flow, defined as net cash provided by operating activities less capital expenditures, was a source of $508 million during full year 2024, as compared to a source of $272 million during the prior year. Excluding $195 million of deposits and payments during 2023 related to the resolution of previous years' tax matters and a $54 million refund received during fourth quarter 2024 related to the same matters, Free Cash Flow was a source of $454 million during full year 2024 compared to a source of $467 million in the prior year. Dividend payments for both the full year 2024 and 2023 were $118 million. Net Debt, defined as total debt less cash and cash equivalents, decreased to $4.0 billion as of December 31, 2024 from $4.3 billion as of December 31, 2023. As of December 31, 2024, Sealed Air had approximately $1.37 billion of available liquidity, comprised of $372 million in cash and $1.0 billion of available and unused lines of credit under our committed credit facilities. The net leverage ratio, defined as net debt divided by trailing twelve month Adjusted EBITDA, was 3.6x as of December 31, 2024, as compared to 3.9x as of December 31, 2023. Outlook for Full Year 2025 (in $ millions except EPS) Range Constant dollar △% Net Sales $5,100 to $5,500 (3%) to 4% Adjusted EBITDA $1,075 to $1,175 (1%) to 8% Adjusted EPS $2.90 to $3.30 (4%) to 9% Free Cash Flow $350 to $450Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items. Conference Call Information Sealed Air Corporation will host a conference call and webcast on Tuesday, February 25, 2025 at 10:00 a.m. (ET) to discuss our Fourth Quarter and Full Year 2024 Results. The conference call will be webcast live on the Investors homepage at A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company's fourth quarter earnings will be made available through the "Presentations & Events" section of the Company's Investor Relations website at prior to the call. About Sealed Air Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2024, Sealed Air generated $5.4 billion in sales and has approximately 16,400 employees who serve customers in 117 countries/territories. Website Information We routinely post important information for investors on our website, 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. Non-GAAP Information In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a "constant dollar" basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers' performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the "Risk Factors" section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission. Any forward-looking statements made by us in this press release are based solely on management's estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law. Company ContactsInvestors Mark Stone 919.673.3218Louise Lagache Amanda Hoggarth supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission. Sealed Air Corporation Condensed Consolidated Statements of Operations (Unaudited)Three Months Ended December 31,Year Ended December 31, (In USD millions, except per share data)2024202320242023 Net sales$ 1,372.8$ 1,377.5$ 5,392.6$ 5,488.9 Cost of sales966.0972.63,767.53,847.6 Gross profit406.8404.91,625.11,641.3 Selling, general and administrative expenses188.8176.5752.6759.1 (Loss) Gain on disposal and sale of businesses and property and equipment, net(10.4)5.9(16.2)(49.3) Amortization expense of intangible assets15.616.762.662.7 Restructuring charges33.06.457.815.6 Operating profit159.0211.2735.9754.6 Interest expense, net(58.7)(66.4)(247.6)(263.0) Other expense, net(15.9)(28.9)(29.9)(61.9) Earnings before income tax provision84.4115.9458.4429.7 Income tax provision84.8(9.0)188.990.4 Net (loss) earnings from continuing operations(0.4)124.9269.5339.3 (Loss) Gain on sale of discontinued operations, net of tax(6.9)(0.9)(4.8)2.3 Net (loss) earnings$ (7.3)$ 124.0$ 264.7$ 341.6 Basic: Continuing operations$ —$ 0.86$ 1.85$ 2.35 Discontinued operations(0.05)—(0.03)0.02 Net (loss) earnings per common share - basic$ (0.05)$ 0.86$ 1.82$ 2.37 Diluted: Continuing operations$ —$ 0.86$ 1.84$ 2.34 Discontinued operations(0.05)—(0.03)0.02 Net (loss) earnings per common share - diluted$ (0.05)$ 0.86$ 1.81$ 2.36 Weighted average number of common shares outstanding: Basic145.8144.5145.5144.4 Diluted146.4144.9146.0144.9 Sealed Air Corporation Condensed Consolidated Balance Sheets (Unaudited) (In USD millions)December 31, 2024December 31, 2023 ASSETS Current assets: Cash and cash equivalents$ 371.8$ 346.1 Trade receivables, net 443.1442.6 Income tax receivables25.044.9 Other receivables99.894.2 Advances and deposits36.172.8 Inventories, net 722.2774.3 Prepaid expenses and other current assets193.8188.4 Total current assets1,891.81,963.3 Property and equipment, net1,397.91,416.4 Goodwill2,878.52,892.5 Identifiable intangible assets, net381.6439.0 Deferred taxes112.0130.8 Operating lease right-of-use-assets98.086.5 Other non-current assets262.3272.1 Total assets$ 7,022.1$ 7,200.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings$ 140.5$ 140.7 Current portion of long-term debt64.635.7 Current portion of operating lease liabilities29.729.2 Accounts payable771.0764.6 Accrued restructuring costs42.623.1 Income tax payable53.328.7 Other current liabilities533.8487.0 Total current liabilities1,635.51,509.0 Long-term debt, less current portion4,198.84,513.9 Long-term operating lease liabilities, less current portion74.866.7 Deferred taxes26.135.8 Other non-current liabilities462.4525.7 Total liabilities6,397.66,651.1Stockholders' equity: Preferred stock—— Common stock15.515.4 Additional paid-in capital1,445.71,429.5 Retained earnings643.4496.5 Common stock in treasury(404.2)(436.4) Accumulated other comprehensive loss, net of taxes(1,075.9)(955.5) Total stockholders' equity624.5549.5 Total liabilities and stockholders' equity$ 7,022.1$ 7,200.6 Sealed Air Corporation Condensed Consolidated Statements of Cash Flows (Unaudited)Year Ended December 31, (In USD millions)20242023 Net earnings$ 264.7$ 341.6 Adjustments to reconcile net earnings to net cash provided by operating activities(1)349.8376.3 Changes in operating assets and liabilities: Trade receivables, net(34.1)73.4 Inventories(4.3)136.0 Income tax receivable/payable45.6(0.4) Accounts payable28.1(122.8) Tax refunds / (payments and deposits) to resolve certain prior years' tax matters54.0(195.0) Other assets and liabilities24.2(92.9) Net cash provided by operating activities$ 728.0$ 516.2 Cash flows from investing activities: Capital expenditures$ (220.2)$ (244.2) Proceeds related to sale of business and property and equipment, net1.010.2 Businesses acquired in purchase transactions, net of cash acquired4.2(1,160.7) (Payments) / Proceeds related to debt, equity, and equity method investments, net(1.1)2.8 Proceeds from cross currency swaps3.11.6 Settlement of foreign currency forward contracts(19.5)12.1 Net cash used in investing activities$ (232.5)$ (1,378.2) Cash flows from financing activities: Net proceeds of short-term borrowings$ 5.2$ 131.6 Proceeds from long-term debt416.21,833.4 Payments of long-term debt(710.5)(958.4) Dividends paid on common stock(118.0)(117.9) Repurchases of common stock—(79.9) Payments of debt modification/extinguishment costs and other(7.6)(22.3) Impact of tax withholding on share-based compensation(9.9)(21.8) Principal payments related to financing leases(8.2)(9.0) Net cash (used in) provided by financing activities$ (432.8)$ 755.7 Effect of foreign currency exchange rate changes on cash and cash equivalents$ (37.0)$ (3.7) Cash and cash equivalents346.1456.1 Restricted cash and cash equivalents—— Balance, beginning of period$ 346.1$ 456.1 Net change during the period25.7(110.0) Cash and cash equivalents371.8346.1 Restricted cash and cash equivalents—— Balance, end of period$ 371.8$ 346.1Non-GAAP Free Cash Flow: Cash flow from operating activities$ 728.0$ 516.2 Capital expenditures for property and equipment(220.2)(244.2) Free Cash Flow$ 507.8$ 272.0Supplemental Cash Flow Information: Interest payments, net of amounts capitalized$ 284.1$ 265.2 Income tax payments, net of cash refunds(2)$ 109.7$ 357.7 Restructuring payments including associated costs$ 58.1$ 19.2 Non-cash items: Transfers of shares of our common stock from treasury for our profit-sharing plan contributions$ 25.4$ 23.9 ________________________ (1) 2024 primarily consists of depreciation and amortization of $241 million, share based compensation expense of $32 million, profit sharing expense of $26 million, provisions for inventory obsolescence of $19 million, impairment of debt investment of $9 million and loss on debt redemption and refinancing activities of $7 million, partially offset by a decrease in deferred taxes of $16 million. 2023 primarily consists of depreciation and amortization of $233 million, net loss associated with the disposal of businesses of $53 million, share based compensation expense of $33 million, profit sharing expense of $25 million, provisions for inventory obsolescence of $18 million, and loss on debt redemption and refinancing activities of $13 million, partially offset by a decrease in deferred taxes of $28 million. (2) 2023 includes $195.0 million of payments and deposits related to the resolution of certain previous years' tax matters. Excluding the $195.0 million of payments and deposits, Income tax payments, net of cash refunds were $162.7 million for the year ended December 31, 2023. 2024 includes a $54.0 million refund from the IRS related to the same tax matters. Excluding the $54.0 million refund, Income tax payments, net of cash refunds were $163.7 million for the year ended December 31, 2024. Sealed Air Corporation Components of Change in Net Sales by Segment (Unaudited)Three Months Ended December 31, (In USD millions)FoodProtectiveTotal Company 2023 Net Sales$ 892.664.8 %$ 484.935.2 %$ 1,377.5100.0 %Price1.60.2 %(5.9)(1.2) %(4.3)(0.3) % Volume(1)43.54.9 %(26.3)(5.4) %17.21.2 % Total constant dollar change (non-GAAP)(2)45.15.1 %(32.2)(6.6) %12.90.9 % Foreign currency translation(15.2)(1.8) %(2.4)(0.5) %(17.6)(1.2) % Total change (GAAP)29.93.3 %(34.6)(7.1) %(4.7)(0.3) %2024 Net Sales$ 922.567.2 %$ 450.332.8 %$ 1,372.8100.0 % Year Ended December 31, (In USD millions)FoodProtectiveTotal Company 2023 Net Sales$ 3,519.764.1 %$ 1,969.235.9 %$ 5,488.9100.0 %Price(69.5)(2.0) %(49.3)(2.5) %(118.8)(2.1) % Volume(1)136.53.9 %(101.8)(5.2) %34.70.6 % Total organic change (non-GAAP)(2)67.01.9 %(151.1)(7.7) %(84.1)(1.5) % Acquisition23.50.7 %—— %23.50.4 % Total constant dollar change (non-GAAP)(2)90.52.6 %(151.1)(7.7) %(60.6)(1.1) % Foreign currency translation(27.6)(0.8) %(8.1)(0.4) %(35.7)(0.7) % Total change (GAAP)62.91.8 %(159.2)(8.1) %(96.3)(1.8) %2024 Net Sales$ 3,582.666.4 %$ 1,810.033.6 %$ 5,392.6100.0 % __________________________ (1) Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold. (2) Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation. Sealed Air Corporation Components of Change in Net Sales by Region (Unaudited)Three Months Ended December 31, (In USD millions)AmericasEMEAAPACTotal Company 2023 Net Sales$ 882.764.1 %$ 285.420.7 %$ 209.415.2 %$ 1,377.5100.0 %Price0.1— %(2.9)(1.0) %(1.5)(0.7) %(4.3)(0.3) % Volume(1)7.20.8 %6.62.3 %3.41.6 %17.21.2 % Total constant dollar change (non-GAAP)(2)7.30.8 %3.71.3 %1.90.9 %12.90.9 % Foreign currency translation(14.5)(1.6) %(1.6)(0.6) %(1.5)(0.7) %(17.6)(1.2) % Total change (GAAP)(7.2)(0.8) %2.10.7 %0.40.2 %(4.7)(0.3) %2024 Net Sales$ 875.563.8 %$ 287.520.9 %$ 209.815.3 %$ 1,372.8100.0 % Year Ended December 31, (In USD millions)AmericasEMEAAPACTotal Company 2023 Net Sales$ 3,578.365.2 %$ 1,149.320.9 %$ 761.313.9 %$ 5,488.9100.0 %Price(76.1)(2.1) %(36.4)(3.2) %(6.3)(0.8) %(118.8)(2.1) % Volume(1)27.80.8 %(9.1)(0.8) %16.02.1 %34.70.6 % Total organic change (non- GAAP)(2)(48.3)(1.3) %(45.5)(4.0) %9.71.3 %(84.1)(1.5) % Acquisition17.20.4 %4.00.4 %2.30.3 %23.50.4 % Total constant dollar change (non-GAAP)(2)(31.1)(0.9) %(41.5)(3.6) %12.01.6 %(60.6)(1.1) % Foreign currency translation(21.1)(0.6) %0.1— %(14.7)(2.0) %(35.7)(0.7) % Total change (GAAP)(52.2)(1.5) %(41.4)(3.6) %(2.7)(0.4) %(96.3)(1.8) %2024 Net Sales$ 3,526.165.4 %$ 1,107.920.5 %$ 758.614.1 %$ 5,392.6100.0 % __________________________ (1) Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold. (2) Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation. Sealed Air Corporation Segment Information Reconciliation of Net Earnings to Non-GAAP Consolidated Adjusted EBITDA (Unaudited)Three Months Ended December 31,Year Ended December 31, (In USD millions)2024202320242023 Adjusted EBITDA from continuing operations: Food$ 207.6$ 194.9$ 807.7$ 775.0 Adjusted EBITDA Margin22.5 %21.8 %22.5 %22.0 % Protective66.790.5313.5361.8 Adjusted EBITDA Margin14.8 %18.7 %17.3 %18.4 % Corporate(3.5)(11.1)(10.6)(30.2) Non-GAAP Consolidated Adjusted EBITDA$ 270.8$ 274.3$ 1,110.6$ 1,106.6 Adjusted EBITDA Margin19.7 %19.9 %20.6 %20.2 %Three Months Ended December 31,Year Ended December 31, (In USD millions)2024202320242023 GAAP Net earnings from continuing operations$ (0.4)$ 124.9$ 269.5$ 339.3 Interest expense, net58.766.4247.6263.0 Income tax provision84.8(9.0)188.990.4 Depreciation and amortization, net of adjustments(1)59.552.5243.7239.6 Special Items: Liquibox intangible amortization7.68.030.327.9 Liquibox inventory step-up amortization—(0.6)—10.2 Restructuring charges33.06.457.815.6 Other restructuring associated costs8.1—30.334.5 Foreign currency exchange loss due to highly inflationary economies2.012.59.923.1 Loss on debt redemption and refinancing activities—8.36.813.2 Impairment of debt investment8.5—8.5— Contract terminations—(0.7)(0.1)14.6 Charges related to acquisition and divestiture activity1.03.84.228.3 CEO severance—6.1—6.1 Other Special Items8.0(4.3)13.20.8 Pre-tax impact of Special Items68.239.5160.9174.3 Non-GAAP Consolidated Adjusted EBITDA$ 270.8$ 274.3$ 1,110.6$ 1,106.6 __________________________ (1) Depreciation and amortization by segment are as follows: Three Months Ended December 31,Year Ended December 31, (In USD millions)2024202320242023 Food$ 45.0$ 39.9$ 186.1$ 175.7 Protective22.120.687.991.8 Consolidated depreciation and amortization(i)$ 67.1$ 60.5$ 274.0$ 267.5 Liquibox intangible amortization(7.6)(8.0)(30.3)(27.9) Depreciation and amortization, net of adjustments$ 59.5$ 52.5$ 243.7$ 239.6 __________________________ (i) Includes share-based incentive compensation of $8.6 million and $33.0 million for the three months and year ended December 31, 2024, respectively, and $1.9 million and $34.2 million for the three months and year ended December 31, 2023, respectively. The calculation of the non-GAAP Adjusted income tax rate is as follows: Three Months Ended December 31,Year Ended December 31, (In USD millions)2024202320242023 GAAP Earnings before income tax provision from continuing operations$ 84.4$ 115.9$ 458.4$ 429.7 Pre-tax impact of Special Items68.239.5160.9174.3 Non-GAAP Adjusted Earnings before income tax provision from continuing operations$ 152.6$ 155.4$ 619.3$ 604.0GAAP Income tax provision from continuing operations$ 84.8$ (9.0)$ 188.9$ 90.4 Tax Special Items(1)(56.1)30.6(64.7)20.0 Tax impact of Special Items14.26.436.232.3 Non-GAAP Adjusted Income tax provision from continuing operations$ 42.9$ 28.0$ 160.4$ 142.7GAAP Effective income tax rate100.5 %(7.8) %41.2 %21.0 % Non-GAAP Adjusted income tax rate28.1 %18.0 %25.9 %23.6 % __________________________ (1) For the year ended December 31, 2024, Tax Special Items reflect the write-off of a deferred tax asset associated with a legal entity restructuring and accruals for uncertain tax positions. For the year ended December 31, 2023, Tax Special Items reflect adjustments related to the settlement of the IRS audit partially offset by accruals for uncertain tax positions. Sealed Air Corporation Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-GAAP Adjusted Net Earnings and Non-GAAP Adjusted Net Earnings Per Common Share (Unaudited)Three Months Ended December 31,Year Ended December 31, 2024202320242023 (In USD millions, except per share data)Net EarningsDiluted EPSNet EarningsDiluted EPSNet EarningsDiluted EPSNet EarningsDiluted EPS GAAP net earnings and diluted EPS from continuing operations$ (0.4)$ —$ 124.9$ 0.86$ 269.5$ 1.84$ 339.3$ 2.34 Special Items(1)110.10.752.50.02189.41.30122.00.84 Non-GAAP adjusted net earnings and adjusted diluted EPS$ 109.7$ 0.75$ 127.4$ 0.88$ 458.9$ 3.14$ 461.3$ 3.18 Weighted average number of common shares outstanding - Diluted146.4144.9146.0144.9 __________________________ (1) Special Items include items in the table below. Three Months Ended December 31,Year Ended December 31, (In USD millions, except per share data)2024202320242023 Special Items: Liquibox intangible amortization$ 7.6$ 8.0$ 30.3$ 27.9 Liquibox inventory step-up amortization—(0.6)—10.2 Restructuring charges33.06.457.815.6 Other restructuring associated costs8.1—30.334.5 Foreign currency exchange loss due to highly inflationary economies2.012.59.923.1 Loss on debt redemption and refinancing activities—8.36.813.2 Impairment of debt investment8.5—8.5— Contract terminations—(0.7)(0.1)14.6 Charges related to acquisition and divestiture activity1.03.84.228.3 CEO severance—6.1—6.1 Other Special Items8.0(4.3)13.20.8 Pre-tax impact of Special Items68.239.5160.9174.3 Tax impact of Special Items and Tax Special Items41.9(37.0)28.5(52.3) Net impact of Special Items$ 110.1$ 2.5$ 189.4$ 122.0 Weighted average number of common shares outstanding - Diluted146.4144.9146.0144.9 Loss per share impact from Special Items$ (0.75)$ (0.02)$ (1.30)$ (0.84) Calculation of Net Debt (Unaudited) (In USD millions)December 31, 2024December 31, 2023 Short-term borrowings$ 140.5$ 140.7 Current portion of long-term debt64.635.7 Long-term debt, less current portion4,198.84,513.9 Total debt4,403.94,690.3 Less: cash and cash equivalents(371.8)(346.1) Non-GAAP Net debt$ 4,032.1$ 4,344.2Net Leverage Ratio (Net Debt / Adjusted EBITDA)3.6x3.9x View original content to download multimedia: SOURCE Sealed Air
Yahoo
14-02-2025
- Business
- Yahoo
Sealed Air Announces Leadership Changes and Re-affirms Full Year 2024 Outlook
CHARLOTTE, N.C., Feb. 14, 2025 /PRNewswire/ -- Sealed Air Corporation (NYSE: SEE) announced today that Dustin Semach has been appointed to serve as the President and Chief Executive Officer, effective immediately. Mr. Semach will also serve as a member of the Board of Directors and its Executive Committee. The Board of Directors and Patrick Kivits have mutually agreed to transition Sealed Air's leadership. Mr. Kivits has stepped down as Chief Executive Officer and as a member of the Board, effective immediately. Mr. Semach most recently served as the Company's President and Chief Financial Officer. Veronika "Roni" Johnson, currently the Chief Accounting Officer, has been appointed the Interim Chief Financial Officer. The Company has begun a search, internally and externally, for a new Chief Financial Officer with a leading executive search firm. Henry Keizer, Sealed Air Board Chairman said, "Our focus has been on rebuilding the foundation by re-aligning our businesses on a market basis, revitalizing our commercial approach and right sizing our cost structure. As we enter the next phase of our transformation, our success requires a leader with a deep understanding of our businesses and a strong sense of urgency. Dustin has proven that he is the best leader to take the business forward with his relentless focus on execution, customer-centric approach, ability to build a high-performing culture, and strong financial and operational skills." Mr. Keizer continued, "We thank Patrick for his contributions in our recent transformation back into two market-focused business segments and wish him the best in his future endeavors." Mr. Keizer continued, "As we look to Sealed Air's future, the Board is confident in Dustin's ability to work with the new segment Presidents, each possessing extensive packaging and commercial expertise, along with their global teams to maximize value for our shareholders. Together, they will accelerate efforts to enhance customer focus, drive profitable growth, streamline our operations, deploy capital effectively and foster a relentless commitment to shareholder returns." Mr. Semach said, "We have made great progress in refocusing on our end-markets with our reorganization into two distinct businesses, Food and Protective. We still have significant opportunities to enhance our growth prospects through better partnering with customers, improving our cost positions and focusing our deep innovation capabilities to develop solutions that solve our customers' most pressing problems. I look forward to continuing to partner with the Board of Directors, each segment leader and all the employees of Sealed Air in meeting these challenges and driving profitable growth in 2025 and beyond." Full Year 2024 Outlook Concurrently with the foregoing announcement, Sealed Air Corporation reaffirms its financial guidance for full year 2024, as provided in a press release issued on November 7, 2024. Mr. Semach and Ms. Johnson will discuss the Company's financial results and operational progress when Sealed Air reports its fourth quarter and full year results on Tuesday, February 25, 2025. About Sealed Air Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2023, Sealed Air generated $5.5 billion in sales and has approximately 17,000 employees who serve customers in 115 countries/territories. Website Information We routinely post important information for investors on our website, 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. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the "Risk Factors" section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission. Any forward-looking statements made by us in this press release are based solely on management's estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law. Company Contacts InvestorsMark 919.673.3218 Louise MediaAmanda View original content to download multimedia: SOURCE Sealed Air Sign in to access your portfolio
