Sealed Air Provides Preliminary Third Quarter Results and Updates Outlook for Full Year 2018
Preliminary third quarter 2018 net earnings from continuing operations
is expected to be in the range of
Net Sales are expected to be approximately
"Our third quarter profitability was adversely affected by currency
headwinds and higher than expected raw material and freight costs. More
specifically to Product Care, we experienced higher absorption costs due
to lower global volumes in our utility business, which accounts for 30%
of the division's sales," said
Based on preliminary third quarter results and expectations heading into year-end, the Company revised its outlook for the full year 2018.
Full year Net Sales are expected to be approximately
For Free Cash Flow,
The Company will release its third quarter 2018 results at approximately
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Business
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,
Non-U.S. GAAP Information
In this press release and supplement, we have included several non-U.S. GAAP financial measures, including Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Adjusted Net Earnings, Adjusted Diluted Earnings Per Share (“Adjusted EPS”) and Adjusted Tax Rate, exclude the impact of specified items (“Special Items”), such as restructuring charges, charges related to the sale of Diversey, special tax items (“Tax Special Items”) and certain other infrequent or one-time items, net sales on a “constant dollar” basis, Cash Flow from Continuing Operations excluding capital expenditures ("Free Cash Flow"), as our management believes these measures are useful to investors. We present results and guidance, adjusted to exclude the effects of Special Items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods or prior guidance. In addition, non-U.S. GAAP measures are used by management to review and analyze our operating performance and, along with other data, as internal measures for setting annual budgets and forecasts, assessing financial performance, providing guidance and comparing our financial performance with our peers and may also be used for purposes of determining incentive compensation. The non-U.S. GAAP information has limitations as an analytical tool and should not be considered in isolation from or as a substitute for U.S. GAAP information. It does not purport to represent any similarly titled U.S. GAAP information and is not an indicator of our performance under U.S. GAAP. Non-U.S. GAAP financial measures that we present may not be comparable with similarly titled measures used by others. Investors are cautioned against placing undue reliance on these non-U.S. GAAP measures. For a reconciliation of these U.S. GAAP measures to non-U.S. GAAP measures and other important information on our use of non-U.S. GAAP financial measures, see the attached supplementary information entitled “Reconciliation of Non-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.
We have not provided guidance for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain Special Items, including restructuring charges, gains and losses related to acquisition and divestiture of businesses, the ultimate outcome of certain legal or tax proceedings, and other unusual gains and losses. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP.
Forward-Looking Statements
This press release 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 “anticipates,” “believes,” “plan,” “assumes,” “could,” “should,” “estimates,” “expects,” “intends,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this press release 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 2017 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, as filed with the
Sealed Air Corporation | |||||||
Supplemental Information(1) |
|||||||
Reconciliation of Non-U.S. GAAP Financial Measures | |||||||
(Unaudited) | |||||||
Three Months Ended
September 30, 2018 |
|||||||
(In millions, except per share data) | Low | High | |||||
U.S. GAAP Net earnings from continuing operations | $ | 73 | $ | 78 | |||
Interest expense, net | 45 | 45 | |||||
Income tax provision | 34 | 32 | |||||
Depreciation and amortization | 41 | 41 | |||||
Special Items: | |||||||
Pre-tax impact of Special Items(2) | 25 | 23 | |||||
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | $ | 218 | $ | 219 | |||
U.S. GAAP Income tax provision from continuing operations | $ | 34 | $ | 32 | |||
Tax Impact of Special Items | 3 | 4 | |||||
Non-U.S. GAAP Adjusted Income tax provision from continuing operations | $ | 37 | $ | 36 | |||
U.S. GAAP Net earnings from continuing operations | $ | 73 | $ | 78 | |||
Total Special Items impact | 22 | 19 | |||||
Non-U.S. GAAP adjusted net earnings from continuing operations | $ | 95 | $ | 97 | |||
U.S. GAAP Net earnings from continuing operations per share - Diluted | $ | 0.46 | $ | 0.49 | |||
Non-U.S. GAAP Adjusted net earnings from continuing operations per share - Diluted | $ | 0.60 | $ | 0.61 | |||
Weighted average number of common shares outstanding - Diluted | 158.0 | 158.0 |
____________ |
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(1) |
The supplementary information included in this press release for 2018 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. | |||
(2) |
Pre-tax Special Items primarily include items related to restructuring and charges related to the sale of Diversey. | |||
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Source:
Sealed Air Corporation
Investors:
Lori Chaitman, 704-503-8841
or
Media:
Julianna
Jacobson, 571-236-4256