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.
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value per share
|
BERY
|
New York Stock Exchange
|
Exhibit Number |
Description | |
BERRY GLOBAL GROUP, INC. | |||
(Registrant) | |||
Dated: July 30, 2019
|
By:
|
/s/Jason K. Greene |
|
Name: |
Jason K. Greene |
||
Title: |
Executive Vice President, Chief Legal Officer and Secretary |
News Release
|
|
|
|
Third Quarter Highlights
(all comparisons made to the June 2018 quarter)
|
|
● | Completed the acquisition of RPC Group Plc on July 1, 2019 |
● |
Consumer Packaging volume growth up 3 percent in the quarter
|
● |
Net sales of $1.94 billion in the quarter
|
● |
Operating income of $215 million in the quarter
|
● |
Operating EBITDA of $348 million
|
● |
Cash flow from operations of $240 million in the quarter
|
● |
Free cash flow of $136 million in the quarter
|
● |
Fiscal Year 2020 free cash flow guidance of $800 million
|
Consolidated Overview
|
||||||||||||||||
June Quarter
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
1,937
|
$
|
2,072
|
$
|
(135
|
)
|
(7
|
)%
|
|||||||
Operating income
|
215
|
216
|
(1
|
)
|
-
|
%
|
Engineered Materials
|
||||||||||||||||
June Quarter
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
639
|
$
|
687
|
$
|
(48
|
)
|
(7
|
)%
|
|||||||
Operating income
|
83
|
94
|
(11
|
)
|
(12
|
)%
|
Health, Hygiene, & Specialties
|
||||||||||||||||
June Quarter
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
646
|
$
|
726
|
$
|
(80
|
)
|
(11
|
)%
|
|||||||
Operating income
|
65
|
62
|
3
|
5
|
%
|
Consumer Packaging
|
||||||||||||||||
June Quarter
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
652
|
$
|
659
|
$
|
(7
|
)
|
(1
|
)%
|
|||||||
Operating income
|
67
|
60
|
7
|
12
|
%
|
Quarterly Period Ended
|
Three Quarterly Periods Ended
|
|||||||||||||||
June 29, 2019
|
June 30, 2018
|
June 29, 2019
|
June 30, 2018
|
|||||||||||||
Net sales
|
$
|
1,937
|
$
|
2,072
|
$
|
5,859
|
$
|
5,815
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
1,557
|
1,690
|
4,754
|
4,733
|
||||||||||||
Selling, general and administrative
|
125
|
119
|
392
|
366
|
||||||||||||
Amortization of intangibles
|
38
|
40
|
119
|
116
|
||||||||||||
Restructuring and impairment charges
|
2
|
7
|
18
|
33
|
||||||||||||
Operating income
|
215
|
216
|
576
|
567
|
||||||||||||
Other expense, net
|
136
|
3
|
159
|
17
|
||||||||||||
Interest expense, net
|
71
|
67
|
201
|
195
|
||||||||||||
Income before income taxes
|
8
|
146
|
216
|
355
|
||||||||||||
Income tax expense (benefit)
|
(5
|
)
|
36
|
41
|
(8
|
)
|
||||||||||
Net income
|
$
|
13
|
$
|
110
|
$
|
175
|
$
|
363
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.10
|
$
|
0.84
|
$
|
1.34
|
$
|
2.76
|
||||||||
Diluted
|
0.10
|
0.81
|
1.31
|
2.67
|
||||||||||||
Outstanding weighted-average shares: (in millions)
|
||||||||||||||||
Basic
|
131.5
|
131.7
|
131.0
|
131.3
|
||||||||||||
Diluted
|
134.2
|
135.4
|
134.0
|
135.8
|
||||||||||||
Quarterly Period Ended
|
Three Quarterly Periods Ended
|
|||||||||||||||
June 29, 2019
|
June 30, 2018
|
June 29, 2019
|
June 30, 2018
|
|||||||||||||
Net income
|
$
|
13
|
$
|
110
|
$
|
175
|
$
|
363
|
||||||||
Currency translation
|
10
|
(92
|
)
|
12
|
(109
|
)
|
||||||||||
Pension and other postretirement benefits
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||
Interest rate hedges
|
(47
|
)
|
6
|
(90
|
)
|
47
|
||||||||||
Provision for income taxes
|
12
|
(2
|
)
|
23
|
(13
|
)
|
||||||||||
Other comprehensive income, net of tax
|
(25
|
)
|
(88
|
)
|
(55
|
)
|
(76
|
)
|
||||||||
Comprehensive income
|
$
|
(12
|
)
|
$
|
22
|
$
|
120
|
$
|
287
|
June 29, 2019
|
September 29, 2018
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
255
|
$
|
381
|
||||
Accounts receivable, net
|
853
|
941
|
||||||
Inventories
|
865
|
887
|
||||||
Other current assets
|
206
|
76
|
||||||
Property, plant, and equipment, net
|
2,451
|
2,488
|
||||||
Goodwill, intangible assets, and other long-term assets
|
4,179
|
4,358
|
||||||
Total assets
|
$
|
8,809
|
$
|
9,131
|
||||
Liabilities and stockholders' equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
1,127
|
$
|
1,199
|
||||
Current and long-term debt
|
5,468
|
5,844
|
||||||
Other long-term liabilities
|
668
|
654
|
||||||
Stockholders’ equity
|
1,546
|
1,434
|
||||||
Total liabilities and stockholders' equity
|
$
|
8,809
|
$
|
9,131
|
June 29, 2019
|
September 29, 2018
|
|||||||
(in millions of dollars)
|
||||||||
Revolving line of credit
|
$
|
—
|
$
|
—
|
||||
Term loans
|
3,298
|
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
|
(36
|
)
|
(43
|
)
|
||||
Capital leases and other
|
106
|
135
|
||||||
Total debt
|
$
|
5,468
|
$
|
5,844
|
Three Quarterly Periods Ended
|
||||||||
June 29, 2019
|
June 30, 2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
175
|
$
|
363
|
||||
Depreciation
|
278
|
281
|
||||||
Amortization of intangibles
|
119
|
116
|
||||||
Loss on foreign exchange forward contracts
|
156
|
—
|
||||||
Other, net
|
10
|
—
|
||||||
Working capital
|
(167
|
)
|
(204
|
)
|
||||
Net cash from operating activities
|
571
|
556
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment
|
(271
|
)
|
(270
|
)
|
||||
Proceeds from sale of assets
|
—
|
3
|
||||||
Acquisitions of businesses, net of cash acquired
|
2
|
(474
|
)
|
|||||
Net cash from investing activities
|
(269
|
)
|
(741
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from long-term borrowings
|
—
|
497
|
||||||
Repayments on long-term borrowings
|
(383
|
)
|
(224
|
)
|
||||
Proceeds from issuance of common stock
|
43
|
17
|
||||||
Debt financing costs
|
—
|
(1
|
)
|
|||||
Repurchase of common stock
|
(74
|
)
|
—
|
|||||
Payment of tax receivable agreement
|
(16
|
)
|
(37
|
)
|
||||
Net cash from financing activities
|
(430
|
)
|
252
|
|||||
Effect of exchange rate changes on cash
|
2
|
(8
|
)
|
|||||
Net change in cash
|
(126
|
)
|
(59
|
)
|
||||
Cash and cash equivalents at beginning of period
|
381
|
306
|
||||||
Cash and cash equivalents at end of period
|
$
|
255
|
$
|
365
|
Quarterly Period Ended June 29, 2019
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
652
|
$
|
646
|
$
|
639
|
$
|
1,937
|
||||||||
Operating income
|
$
|
67
|
$
|
65
|
$
|
83
|
$
|
215
|
||||||||
Depreciation and amortization
|
50
|
49
|
28
|
127
|
||||||||||||
Restructuring and impairment charges
|
1
|
1
|
—
|
2
|
||||||||||||
Other non-cash charges (1)
|
1
|
3
|
2
|
6
|
||||||||||||
Business optimization costs (2)
|
7
|
(9
|
)
|
—
|
(2
|
)
|
||||||||||
Operating EBITDA
|
$
|
126
|
$
|
109
|
$
|
113
|
$
|
348
|
Quarterly Period Ended June 30, 2018
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
659
|
$
|
726
|
$
|
687
|
$
|
2,072
|
||||||||
Operating income
|
$
|
60
|
$
|
62
|
$
|
94
|
$
|
216
|
||||||||
Depreciation and amortization
|
59
|
51
|
26
|
136
|
||||||||||||
Restructuring and impairment charges
|
1
|
4
|
2
|
7
|
||||||||||||
Other non-cash charges (1)
|
2
|
2
|
3
|
7
|
||||||||||||
Business optimization costs (2)
|
—
|
4
|
4
|
8
|
||||||||||||
Operating EBITDA
|
$
|
122
|
$
|
123
|
$
|
129
|
$
|
374
|
Three Quarterly Periods Ended June 29, 2019
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
1,892
|
$
|
2,031
|
$
|
1,936
|
$
|
5,859
|
||||||||
Operating income
|
$
|
154
|
$
|
171
|
$
|
251
|
$
|
576
|
||||||||
Depreciation and amortization
|
156
|
153
|
88
|
397
|
||||||||||||
Restructuring and impairment charges
|
4
|
13
|
1
|
18
|
||||||||||||
Other non-cash charges (1)
|
7
|
9
|
9
|
25
|
||||||||||||
Business optimization costs (2)
|
17
|
(4
|
)
|
4
|
17
|
|||||||||||
Operating EBITDA
|
$
|
338
|
$
|
342
|
$
|
353
|
$
|
1,033
|
Three Quarterly Periods Ended June 30, 2018
|
||||||||||||||||
Consumer Packaging
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
|||||||||||||
Net sales
|
$
|
1,816
|
$
|
2,009
|
$
|
1,990
|
$
|
5,815
|
||||||||
Operating income
|
$
|
151
|
$
|
140
|
$
|
276
|
$
|
567
|
||||||||
Depreciation and amortization
|
169
|
146
|
82
|
397
|
||||||||||||
Restructuring and impairment charges
|
3
|
26
|
4
|
33
|
||||||||||||
Other non-cash charges (1)
|
7
|
11
|
9
|
27
|
||||||||||||
Business optimization costs (2)
|
—
|
6
|
4
|
10
|
||||||||||||
Operating EBITDA
|
$
|
330
|
$
|
329
|
$
|
375
|
$
|
1,034
|
Quarterly Period Ended
|
Four Quarters Ended
|
|||||||||||
June 29, 2019
|
June 30, 2018
|
June 29, 2019
|
||||||||||
Net income
|
$
|
13
|
$
|
110
|
$
|
308
|
||||||
Add: other expense, net (6)
|
136
|
3
|
167
|
|||||||||
Add: interest expense, net
|
71
|
67
|
265
|
|||||||||
Add: income tax expense (benefit)
|
(5
|
)
|
36
|
30
|
||||||||
Operating income
|
$
|
215
|
$
|
216
|
$
|
770
|
||||||
Add: non-cash amortization from 2006 private sale
|
7
|
7
|
28
|
|||||||||
Add: restructuring and impairment
|
2
|
7
|
21
|
|||||||||
Add: other non-cash charges (1)
|
6
|
7
|
26
|
|||||||||
Add: business optimization and other expenses (2)
|
(2
|
)
|
8
|
24
|
||||||||
Adjusted operating income (10)
|
$
|
228
|
$
|
245
|
$
|
869
|
||||||
Add: depreciation
|
89
|
96
|
381
|
|||||||||
Add: amortization of intangibles (3)
|
31
|
33
|
129
|
|||||||||
Operating EBITDA (10)
|
$
|
348
|
$
|
374
|
$
|
1,379
|
||||||
Add: acquisitions (7)
|
7
|
|||||||||||
Add: unrealized cost savings (8)
|
3
|
|||||||||||
Adjusted EBITDA (10)
|
$
|
1,389
|
Cash flow from operating activities
|
$
|
240
|
$
|
271
|
$
|
1,018
|
||||||
Net additions to property, plant, and equipment
|
(104
|
)
|
(86
|
)
|
(337
|
)
|
||||||
Payment of tax receivable agreement
|
—
|
—
|
(16
|
)
|
||||||||
Free cash flow (10)
|
$
|
136
|
$
|
185
|
$
|
665
|
||||||
Net income per diluted share
|
$
|
0.10
|
$
|
0.81
|
|
|
||||||
Other expense, net (6)
|
1.01
|
0.02
|
||||||||||
Non-cash amortization from 2006 private sale
|
0.05
|
0.05
|
||||||||||
Restructuring and impairment
|
0.01
|
0.05
|
||||||||||
Other non-cash charges (4)
|
—
|
0.01
|
||||||||||
Business optimization costs (2)
|
(0.01
|
)
|
0.06
|
|||||||||
Income tax impact on items above (5)
|
(0.26
|
)
|
(0.04
|
)
|
||||||||
Adjusted net income per diluted share (10)
|
$
|
0.90
|
$
|
0.96
|
||||||||
Estimated Fiscal 2020
|
||||||||||||
Cash flow from operating activities
|
$
|
1,400
|
|
|
|
|
||||||
Additions to property, plant, and equipment
|
(600
|
)
|
||||||||||
Free cash flow (10)
|
$
|
800
|
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