Delaware
|
1-35672
|
20-5234618
|
(State of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act.
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act.
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
|
Exhibit Number |
Description | |
99.1
|
Press Release dated February 1, 2019
|
BERRY GLOBAL GROUP, INC. | ||||
(Registrant) | ||||
Dated: February 1, 2019F
|
By:
|
/s/ Jason K. Greene |
||
Name: |
Jason K. Greene |
|||
Title: |
Executive Vice President, Chief Legal Officer and Secretary |
![]() |
News Release
|
|
|
|
First Quarter Highlights
(all comparisons made to the December 2017 quarter)
|
·
|
Net sales increased 11 percent to $2 billion
|
·
|
Organic sales growth, which excludes currency and acquisition effects, up 3 percent
|
·
|
Operating income up 8 percent to $176 million
|
·
|
Operating EBITDA up 7 percent to $331 million
|
·
|
Net income per diluted share of $0.66
|
·
|
Adjusted net income per diluted share up 15 percent to $0.77
|
Consolidated Overview
|
||||||||||||||||
December
|
||||||||||||||||
(in millions of dollars)
|
Current Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
1,972
|
$
|
1,776
|
$
|
196
|
11
|
%
|
||||||||
Operating income
|
176
|
163
|
13
|
8
|
%
|
Engineered Materials
|
||||||||||||||||
December
|
||||||||||||||||
(in millions of dollars)
|
Current Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
669
|
$
|
648
|
$
|
21
|
3
|
%
|
||||||||
Operating income
|
94
|
88
|
6
|
7
|
%
|
Health, Hygiene, & Specialties
|
||||||||||||||||
December
|
||||||||||||||||
(in millions of dollars)
|
Current Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
702
|
$
|
577
|
$
|
125
|
22
|
%
|
||||||||
Operating income
|
49
|
37
|
12
|
32
|
%
|
Consumer Packaging
|
||||||||||||||||
December
|
||||||||||||||||
(in millions of dollars)
|
Current Quarter
|
Prior Quarter
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
601
|
$
|
551
|
$
|
50
|
9
|
%
|
||||||||
Operating income
|
33
|
38
|
(5
|
)
|
(13
|
)%
|
Quarterly Period Ended
|
||||||||
December 29, 2018
|
December 30, 2017
|
|||||||
Net sales
|
$
|
1,972
|
$
|
1,776
|
||||
Costs and expenses:
|
||||||||
Cost of goods sold
|
1,619
|
1,447
|
||||||
Selling, general and administrative
|
124
|
117
|
||||||
Amortization of intangibles
|
42
|
38
|
||||||
Restructuring and impairment charges
|
11
|
11
|
||||||
Operating income
|
176
|
163
|
||||||
Other expense (income), net
|
—
|
9
|
||||||
Interest expense, net
|
64
|
62
|
||||||
Income before income taxes
|
112
|
92
|
||||||
Income tax expense (benefit)
|
24
|
(71
|
)
|
|||||
Net income
|
$
|
88
|
$
|
163
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
0.67
|
$
|
1.24
|
||||
Diluted
|
0.66
|
1.20
|
||||||
Outstanding weighted-average shares: (in millions)
|
||||||||
Basic
|
131.1
|
131.0
|
||||||
Diluted
|
133.8
|
136.0
|
Quarterly Period Ended
|
||||||||
December 29, 2018
|
December 30, 2017
|
|||||||
Net income
|
$
|
88
|
$
|
163
|
||||
Currency translation
|
(4
|
)
|
(24
|
)
|
||||
Pension and other postretirement benefits
|
—
|
(1
|
)
|
|||||
Interest rate hedges
|
(24
|
)
|
17
|
|||||
Provision for income taxes
|
7
|
(4
|
)
|
|||||
Other comprehensive income, net of tax
|
(21
|
)
|
(12
|
)
|
||||
Comprehensive income
|
$
|
67
|
$
|
151
|
December 29, 2018
|
September 29, 2018
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
293
|
$
|
381
|
||||
Accounts receivable, net
|
879
|
941
|
||||||
Inventories
|
956
|
887
|
||||||
Other current assets
|
78
|
76
|
||||||
Property, plant, and equipment, net
|
2,457
|
2,488
|
||||||
Goodwill, intangible assets, and other long-term assets
|
4,309
|
4,358
|
||||||
Total assets
|
$
|
8,972
|
$
|
9,131
|
||||
Liabilities and stockholders' equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
1,142
|
$
|
1,199
|
||||
Current and long-term debt
|
5,737
|
5,844
|
||||||
Other long-term liabilities
|
638
|
654
|
||||||
Stockholders’ equity
|
1,455
|
1,434
|
||||||
Total liabilities and stockholders' equity
|
$
|
8,972
|
$
|
9,131
|
December 29, 2018
|
September 29, 2018
|
|||||||
(in millions of dollars)
|
||||||||
Revolving line of credit
|
$
|
—
|
$
|
—
|
||||
Term loans
|
3,552
|
3,652
|
||||||
5½% Second priority notes
|
500
|
500
|
||||||
6 % Second priority notes
|
400
|
400
|
||||||
5⅛ % Second priority notes
|
700
|
700
|
||||||
4½ % Second priority notes
|
500
|
500
|
||||||
Debt discounts and deferred fees
|
(40
|
)
|
(43
|
)
|
||||
Capital leases and other
|
125
|
135
|
||||||
Total debt
|
$
|
5,737
|
$
|
5,844
|
Quarterly Period Ended
|
||||||||
December 29, 2018
|
December 30, 2017
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
88
|
$
|
163
|
||||
Depreciation
|
96
|
91
|
||||||
Amortization of intangibles
|
42
|
38
|
||||||
Other, net
|
10
|
(108
|
)
|
|||||
Working capital
|
(75
|
)
|
(31
|
)
|
||||
Net cash from operating activities
|
161
|
153
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment
|
(75
|
)
|
(94
|
)
|
||||
Proceeds from sale of assets
|
—
|
3
|
||||||
Net cash from investing activities
|
(75
|
)
|
(91
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(110
|
)
|
(108
|
)
|
||||
Proceeds from issuance of common stock
|
5
|
4
|
||||||
Repurchase of common stock
|
(52
|
)
|
—
|
|||||
Payment of tax receivable agreement
|
(16
|
)
|
(37
|
)
|
||||
Net cash from financing activities
|
(173
|
)
|
(141
|
)
|
||||
Effect of exchange rate changes on cash
|
(1
|
)
|
1
|
|||||
Net change in cash
|
(88
|
)
|
(78
|
)
|
||||
Cash and cash equivalents at beginning of period
|
381
|
306
|
||||||
Cash and cash equivalents at end of period
|
$
|
293
|
$
|
228
|
Quarterly Period Ended December 29, 2018
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
601
|
$
|
702
|
$
|
669
|
$
|
1,972
|
||||||||
Operating income
|
$
|
33
|
$
|
49
|
$
|
94
|
$
|
176
|
||||||||
Depreciation and amortization
|
53
|
54
|
31
|
138
|
||||||||||||
Restructuring and impairment charges
|
1
|
10
|
—
|
11
|
||||||||||||
Other non-cash charges (1)
|
1
|
2
|
1
|
4
|
||||||||||||
Business optimization costs (2)
|
—
|
1
|
1
|
2
|
||||||||||||
Operating EBITDA
|
$
|
88
|
$
|
116
|
$
|
127
|
$
|
331
|
Quarterly Period Ended December 30, 2017
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
551
|
$
|
577
|
$
|
648
|
$
|
1,776
|
||||||||
Operating income
|
$
|
38
|
$
|
37
|
$
|
88
|
$
|
163
|
||||||||
Depreciation and amortization
|
54
|
46
|
29
|
129
|
||||||||||||
Restructuring and impairment charges
|
1
|
10
|
—
|
11
|
||||||||||||
Other non-cash charges (1)
|
2
|
1
|
2
|
5
|
||||||||||||
Business optimization costs (2)
|
—
|
2
|
—
|
2
|
||||||||||||
Operating EBITDA
|
$
|
95
|
$
|
96
|
$
|
119
|
$
|
310
|
(1)
|
Other non-cash charges for the December 2018 quarter primarily includes $3 million of stock compensation expense and other
non-cash charges. Other non-cash charges for the December 2017 quarter primarily includes $4 million of stock compensation expense and other non-cash charges.
|
(2)
|
Includes integration expenses and other business optimization costs.
|
Quarterly Period Ended
|
Four Quarters Ended
|
|||||||||||
December 29, 2018
|
December 30, 2017
|
December 29, 2018
|
||||||||||
Net income
|
$
|
88
|
$
|
163
|
$
|
421
|
||||||
Add: other expense (income), net
|
—
|
9
|
16
|
|||||||||
Add: interest expense, net
|
64
|
62
|
261
|
|||||||||
Add: income tax (benefit) expense
|
24
|
(71
|
)
|
76
|
||||||||
Operating income
|
$
|
176
|
$
|
163
|
$
|
774
|
||||||
Add: non-cash amortization from 2006 private sale
|
7
|
7
|
28
|
|||||||||
Add: restructuring and impairment
|
11
|
11
|
36
|
|||||||||
Add: other non-cash charges (1)
|
4
|
5
|
27
|
|||||||||
Add: business optimization and other expenses (2)
|
2
|
2
|
17
|
|||||||||
Adjusted operating income (10)
|
$
|
200
|
$
|
188
|
$
|
882
|
||||||
Add: depreciation
|
96
|
91
|
389
|
|||||||||
Add: amortization of intangibles (3)
|
35
|
31
|
130
|
|||||||||
Operating EBITDA (10)
|
$
|
331
|
$
|
310
|
$
|
1,401
|
||||||
Add: acquisitions (7)
|
20
|
|||||||||||
Add: unrealized cost savings (8)
|
18
|
|||||||||||
Adjusted EBITDA (10)
|
$
|
1,439
|
Cash flow from operating activities
|
$
|
161
|
$
|
153
|
$
|
1,012
|
||||||
Net additions to property, plant, and equipment
|
(75
|
)
|
(91
|
)
|
(317
|
)
|
||||||
Payment of tax receivable agreement
|
(16
|
)
|
(37
|
)
|
(16
|
)
|
||||||
Adjusted free cash flow (10)
|
$
|
70
|
$
|
25
|
$
|
679
|
Net income per diluted share
|
$
|
0.66
|
$
|
1.20
|
||||||||
Other expense (income), net
|
—
|
0.07
|
||||||||||
Non-cash amortization from 2006 private sale
|
0.05
|
0.05
|
||||||||||
Restructuring and impairment
|
0.08
|
0.08
|
||||||||||
Other non-cash charges (4)
|
—
|
0.01
|
||||||||||
Business optimization costs (2)
|
0.02
|
0.01
|
||||||||||
Income tax impact on items above (5)
|
(0.04
|
)
|
(0.05
|
)
|
||||||||
Tax reform adjustments, net (6)
|
—
|
(0.70
|
)
|
|||||||||
Adjusted net income per diluted share (10)
|
$
|
0.77
|
$
|
0.67
|
Estimated Fiscal 2019
|
||||||||||||
Cash flow from operating activities
|
$
|
1,036
|
||||||||||
Additions to property, plant, and equipment
|
(350
|
)
|
||||||||||
Tax receivable agreement payment (9)
|
(16
|
)
|
||||||||||
Adjusted free cash flow (10)
|
$
|
670
|
Quarterly Period Ended December 29, 2018
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Organic sales growth
|
9
|
%
|
2
|
%
|
(2
|
%)
|
3
|
%
|
||||||||
Acquisition
|
—
|
21
|
%
|
5
|
%
|
9
|
%
|
|||||||||
Currency effects
|
—
|
(1
|
%)
|
—
|
(1
|
%)
|
||||||||||
Total Reported Net Sales
|
9
|
%
|
22
|
%
|
3
|
%
|
11
|
%
|
Quarterly Period December 30, 2017
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Organic sales growth
|
3
|
%
|
1
|
%
|
—
|
1
|
%
|
|||||||||
Acquisition
|
—
|
12
|
%
|
5
|
%
|
6
|
%
|
|||||||||
Currency effects
|
—
|
5
|
%
|
1
|
%
|
2
|
%
|
|||||||||
Total Reported Net Sales
|
3
|
%
|
18
|
%
|
6
|
%
|
9
|
%
|
_O4C$H'2C_ #UHI@+24?Y-'^>M) *.>_TJ>TO);*X$L38/>H <4#%
M'H>E:K%J, *G]X.HK1KS*VNY;2021.58=@>M=YI6JQ:A /F F ^9:8C1HHHI
M@%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
M4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1
M110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%
M% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444
M %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
M4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1
M110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%
M% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444
M %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
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M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%%
M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %
M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44
M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111
M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%%
M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %
M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44
M44 %%%% !1110 4444 %%%% !1110 5'-,D$9=S@ 56O-0BME/(+]A7-W=])
M=R?,<+Z"O*QN9TZ"M'5C2+-_JKW.50XC_G6;WSW[4F/_ (#^7YGFQZ?_ %Z*.U)7NG@B_C^M
M%'Y_E24 *,8ZT?CS]:*.W?\ *@ KU3X1?>NOQ_I7E?>O4_A%G==?C_2N7&?P
M6=F!_C(]8HHHKP#W@HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "
MBBB@ HHHH **** .=\<8_P"$2OO^N=?.H[8KZ*\<9_X1&_\ ^N=?.HR<M SS2=J] \X6@8QUI*6@ /U_6CC_)I.U+0".G^'
M_P#R.VG_ .\W?_9-?0E?/?P_S_PFVG_[S?\ H)KZ$KQLQ_B+T/:R[^$_7_(*
M***\\] **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M"BBB@ HHHH Y[QKIJZEX7O8\99(RZ_4O5OA3K^1-I4S_<&Z(>V>:\ISQ5W2M1FTS4X+N$D
M&-P3@]1Z5C7I>UIN)MAZWL:BETZ^A]/450T?4H=6TV*\A<,CCJ/6K]?.M-.S
M/I/0****0!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !11
M10 4444 %%%% !1110 4444 %%%% 'COQ<_Y"=O_ +@_K7FHKTKXN8_M*W)_
MN#^M>:U]!A/X,3Y_&+]_(/P%'^32_P">M%=)RB?RHYI?\XI/QH$%'^12T4 =
MC\,_^1I7_KG_ %%>]5X+\-1GQ2.^(_ZBO>NU>)F'\7Y'O9?_ /FPHHHKA.T
M*QO%J;_"FICTMW/Z5LUG:]'YN@7\?]Z!Q^E73=IIDR5XM'S)_*BG,-LC#T.,
M4W_/6OICY9!_DT?Y%+_GK1]*!B44OXTF: #FM?PQ<"V\1VDV<;6K(_&IK9RE
MS$X."K@YS[U,DI1:949.$E)'U'$VZ)&]0*?5;3Y!+I]O(#D-^E6:^9>Y]0
M%%%%( HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *
M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *\%^)N/\ A*C_
M +G]37O5>#?$S_D:C_N?U-=V7_QOD<.8_P #YHXS';O1_*C\>/6EKVSPA*/\
MFEHH 3^5%+2?C0- *][^&?\ R)]O]3_.O!1U_P#KU[S\,_\ D4+?ZG^=<&8?
MPOF>AEO\9^GZH[*BBBO%/:"BBB@ HHHH **** "BBB@ HHHH **** "BBB@
MHHHH **** "BBB@#Q7XN?\C%;_\ 7$?SKSW\J]"^+G_(Q6__ %Q'\Z\]_P ]
M:^BPO\&)\[B_X\@_R*/YTM'^
>OK1Q_D5Z9Y%P/7O0.O>@CFC%,!?S[4A[]:,#_(H[
MT 'KUI3W/-)Q_D4=_P#ZU 7 ?RKT3X8^'5O[YM4<'R[=L(/4UP=A8RZA?0VL
M*,SR,!P*^BO#.BQZ#H\5G&.1RQQR37%CJW)3Y5NSOP%%SJ<\EHOS-@=*6BBO
M#/;"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH
MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
M HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "
MBBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **
M** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH
MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
M HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "
MBBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **
M** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH
MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ***0].M "T
M'@5F:GK^G:5$7N;J-" <*6&37F?B+XI2W,3P:5&T(/\ RU8\_E6]+#U*OPHQ
MK8BG17OL[[Q!XNT_0("9GW2X.(U/->+>(/%^HZ]*Q>5X[?G;$#QCWK%NKVZO
MIFENIGE