Delaware | 001-33988 | 26-0405422 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
SIGNATURE | |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | |
GRAPHIC PACKAGING HOLDING COMPANY | |
(Registrant) | |
Date: October 21, 2014 | By: /s/ Lauren S. Tashma |
Lauren S. Tashma | |
Senior Vice President, General Counsel and Secretary | |
• | Q3 Net Sales increased $49.3 million or 4.9%, after adjusting for the impact of divested businesses. |
• | Q3 Adjusted Earnings per Diluted Share increased to $0.17 versus $0.12 in the prior year period. |
• | Q3 Adjusted EBITDA increased to $190.6 million versus $175.2 million in the prior year period. |
• | Q3 Adjusted EBITDA margin was 18.2% versus 15.1% in the prior year period. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
In millions, except per share amounts | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net Sales | $ | 1,050.0 | $ | 1,163.0 | $ | 3,239.4 | $ | 3,403.2 | |||||||
Cost of Sales | 847.6 | 982.3 | 2,636.9 | 2,851.0 | |||||||||||
Selling, General and Administrative | 83.6 | 93.8 | 279.0 | 290.0 | |||||||||||
Other Income, Net | (0.3 | ) | (4.0 | ) | (1.3 | ) | (11.3 | ) | |||||||
Restructuring and Other Special Charges (Credits) | 6.8 | (14.8 | ) | 185.7 | (5.1 | ) | |||||||||
Income from Operations | 112.3 | 105.7 | 139.1 | 278.6 | |||||||||||
Interest Expense, Net | (20.4 | ) | (23.5 | ) | (62.0 | ) | (80.4 | ) | |||||||
Loss on Modification or Extinguishment of Debt | — | (1.2 | ) | — | (27.1 | ) | |||||||||
Income before Income Taxes and Equity Income of Unconsolidated Entities | 91.9 | 81.0 | 77.1 | 171.1 | |||||||||||
Income Tax Expense | (39.3 | ) | (35.8 | ) | (30.9 | ) | (70.9 | ) | |||||||
Income before Equity Income of Unconsolidated Entities | 52.6 | 45.2 | 46.2 | 100.2 | |||||||||||
Equity Income of Unconsolidated Entities | 0.4 | 0.5 | 1.3 | 1.2 | |||||||||||
Net Income | 53.0 | 45.7 | 47.5 | 101.4 | |||||||||||
Net (Income) Loss Attributable to Noncontrolling Interests | — | (1.2 | ) | 0.7 | (0.8 | ) | |||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 53.0 | $ | 44.5 | $ | 48.2 | $ | 100.6 | |||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic | $ | 0.16 | $ | 0.13 | $ | 0.15 | $ | 0.29 | |||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted | $ | 0.16 | $ | 0.13 | $ | 0.15 | $ | 0.29 | |||||||
Weighted Average Number of Shares Outstanding - Basic | 328.9 | 350.5 | 328.4 | 349.5 | |||||||||||
Weighted Average Number of Shares Outstanding - Diluted | 330.6 | 352.2 | 330.4 | 351.3 |
In millions, except share and per share amounts | September 30, 2014 | December 31, 2013 | |||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 55.2 | $ | 52.2 | |||
Receivables, Net | 497.7 | 412.8 | |||||
Inventories, Net | 532.0 | 557.1 | |||||
Deferred Income Tax Assets | 172.0 | 171.3 | |||||
Other Current Assets | 32.7 | 32.2 | |||||
Assets Held for Sale | 9.5 | 6.6 | |||||
Total Current Assets | 1,299.1 | 1,232.2 | |||||
Property, Plant and Equipment, Net | 1,545.4 | 1,678.9 | |||||
Goodwill | 1,121.5 | 1,125.4 | |||||
Intangible Assets, Net | 401.0 | 467.0 | |||||
Other Assets | 63.6 | 55.8 | |||||
Total Assets | $ | 4,430.6 | $ | 4,559.3 | |||
LIABILITIES | |||||||
Current Liabilities: | |||||||
Short-Term Debt and Current Portion of Long-Term Debt | $ | 68.0 | $ | 77.4 | |||
Accounts Payable | 422.1 | 428.3 | |||||
Other Accrued Liabilities | 216.2 | 205.5 | |||||
Total Current Liabilities | 706.3 | 711.2 | |||||
Long-Term Debt | 2,011.2 | 2,176.2 | |||||
Deferred Income Tax Liabilities | 359.1 | 329.9 | |||||
Other Noncurrent Liabilities | 255.7 | 268.4 | |||||
Redeemable Noncontrolling Interests | — | 11.3 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred Stock, par value $.01 per share; 100,000,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common Stock, par value $.01 per share; 1,000,000,000 shares authorized; 327,029,475 and 324,746,642 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 3.3 | 3.2 | |||||
Capital in Excess of Par Value | 1,792.4 | 1,789.9 | |||||
Accumulated Deficit | (494.4 | ) | (542.6 | ) | |||
Accumulated Other Comprehensive Loss | (203.0 | ) | (188.2 | ) | |||
Total Shareholders' Equity | 1,098.3 | 1,062.3 | |||||
Total Liabilities and Shareholders' Equity | $ | 4,430.6 | $ | 4,559.3 |
Nine Months Ended | |||||||
September 30, | |||||||
In millions | 2014 | 2013 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 47.5 | $ | 101.4 | |||
Non-cash Items Included in Net Income: | |||||||
Depreciation and Amortization | 202.2 | 208.5 | |||||
Deferred Income Taxes | 28.8 | 61.0 | |||||
Amount of Postretirement Expense Less Than Funding | (13.9 | ) | (0.8 | ) | |||
Loss (Gain) on the Sale of Assets | 170.4 | (26.6 | ) | ||||
Other, Net | 29.3 | 25.0 | |||||
Changes in Operating Assets and Liabilities | (133.1 | ) | (99.0 | ) | |||
Net Cash Provided by Operating Activities | 331.2 | 269.5 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital Spending | (151.4 | ) | (153.2 | ) | |||
Proceeds from Government Grant | 26.9 | — | |||||
Acquisition of Business | (190.7 | ) | — | ||||
Cash Acquired Related to Acquisition | 16.9 | — | |||||
Proceeds Received from the Sale of Assets, Net of Selling Costs | 167.4 | 64.6 | |||||
Other, Net | (4.4 | ) | (7.3 | ) | |||
Net Cash Used in Investing Activities | (135.3 | ) | (95.9 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from Issuance or Modification of Debt | — | 425.0 | |||||
Retirement of Long-Term Debt | — | (425.0 | ) | ||||
Payments on Debt | (46.1 | ) | (56.0 | ) | |||
Borrowings under Revolving Credit Facilities | 949.3 | 1,373.5 | |||||
Payments on Revolving Credit Facilities | (1,068.6 | ) | (1,418.7 | ) | |||
Redemption and Debt Issuance Costs | — | (29.9 | ) | ||||
Repurchase of Common Stock related to Share-Based Payments | (14.7 | ) | (11.2 | ) | |||
Other, Net | (10.2 | ) | 10.8 | ||||
Net Cash Used in Financing Activities | (190.3 | ) | (131.5 | ) | |||
Effect of Exchange Rate Changes on Cash | (2.6 | ) | (1.6 | ) | |||
Net Increase in Cash and Cash Equivalents | 3.0 | 40.5 | |||||
Cash and Cash Equivalents at Beginning of Period | 52.2 | 51.5 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 55.2 | $ | 92.0 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
In millions, except per share amounts | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 53.0 | $ | 44.5 | $ | 48.2 | $ | 100.6 | |||||||
(Subtract) Add: | |||||||||||||||
Net Loss (Income) Attributable to Noncontrolling Interests | — | 1.2 | (0.7 | ) | 0.8 | ||||||||||
Income Tax Expense | 39.3 | 35.8 | 30.9 | 70.9 | |||||||||||
Equity Income of Unconsolidated Entities | (0.4 | ) | (0.5 | ) | (1.3 | ) | (1.2 | ) | |||||||
Interest Expense, Net | 20.4 | 23.5 | 62.0 | 80.4 | |||||||||||
Depreciation and Amortization | 70.0 | 84.3 | 212.7 | 237.2 | |||||||||||
EBITDA | 182.3 | 188.8 | 351.8 | 488.7 | |||||||||||
Loss (Gain) on Sale of Assets | 0.3 | (20.2 | ) | 170.7 | (19.0 | ) | |||||||||
Charges Associated with Business Combinations and Other Special Charges | 8.0 | 5.4 | 16.5 | 15.1 | |||||||||||
Loss on Modification or Extinguishment of Debt | — | 1.2 | — | 27.1 | |||||||||||
Adjusted EBITDA | $ | 190.6 | $ | 175.2 | $ | 539.0 | $ | 511.9 | |||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 53.0 | $ | 44.5 | $ | 48.2 | $ | 100.6 | |||||||
Loss (Gain) on Sale of Assets | 0.3 | (17.6 | ) | 170.7 | (16.6 | ) | |||||||||
Charges Associated with Business Combinations and Other Special Charges | 8.0 | 5.4 | 16.5 | 12.7 | |||||||||||
Accelerated Depreciation Related to Shutdown | — | 3.5 | — | 3.5 | |||||||||||
Loss on Modification or Extinguishment of Debt | — | 1.2 | — | 27.1 | |||||||||||
Tax Impact of Non-recurring Items | (3.8 | ) | 5.9 | (67.4 | ) | (4.5 | ) | ||||||||
Adjusted Net Income | $ | 57.5 | $ | 42.9 | $ | 168.0 | $ | 122.8 | |||||||
Adjusted Earnings Per Share - Basic | $ | 0.17 | $ | 0.12 | $ | 0.51 | $ | 0.35 | |||||||
Adjusted Earnings Per Share - Diluted | $ | 0.17 | $ | 0.12 | $ | 0.51 | $ | 0.35 |
Three Months Ended | |||||||
September 30, | |||||||
In millions, except per share amounts | 2014 | 2013 | |||||
Net Sales | $ | 1,050.0 | $ | 1,163.0 | |||
Net Sales related to divestitures | — | (162.3 | ) | ||||
Adjusted Net Sales | $ | 1,050.0 | $ | 1,000.7 | |||
Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales) | 18.2 | % | 15.1 | % |
Twelve Months Ended | |||||||||||
September 30, | September 30, | December 31, | |||||||||
In millions | 2014 | 2013 | 2013 | ||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 94.2 | $ | 123.5 | $ | 146.6 | |||||
(Subtract) Add: | |||||||||||
Net (Loss) Income Attributable to Noncontrolling Interests | (1.4 | ) | 0.4 | 0.1 | |||||||
Income Tax Expense | 27.4 | 84.8 | 67.4 | ||||||||
Equity Income of Unconsolidated Entities | (1.6 | ) | (1.9 | ) | (1.5 | ) | |||||
Interest Expense, Net | 83.5 | 105.9 | 101.9 | ||||||||
Depreciation and Amortization | 289.7 | 309.8 | 314.2 | ||||||||
EBITDA | 491.8 | 622.5 | 628.7 | ||||||||
Charges Associated with Business Combination | 26.3 | 26.3 | 30.5 | ||||||||
Loss (Gain) on Sale or Shutdown of Assets, Net | 171.8 | (19.0 | ) | (17.9 | ) | ||||||
Restructuring and Other Special Charges | 7.4 | 3.1 | 1.8 | ||||||||
Loss on Modification or Extinguishment of Debt | — | 29.2 | 27.1 | ||||||||
Adjusted EBITDA | $ | 697.3 | $ | 662.1 | $ | 670.2 | |||||
September 30, | September 30, | December 31, | |||||||||
Calculation of Net Debt: | 2014 | 2013 | 2013 | ||||||||
Short-Term Debt and Current Portion of Long-Term Debt | $ | 68.0 | $ | 83.9 | $ | 77.4 | |||||
Long-Term Debt | 2,011.2 | 2,148.9 | 2,176.2 | ||||||||
Less: | |||||||||||
Cash and Cash Equivalents | (55.2 | ) | (92.0 | ) | (52.2 | ) | |||||
Total Net Debt | $ | 2,024.0 | $ | 2,140.8 | $ | 2,201.4 | |||||
Net Leverage Ratio (Net Debt/Adjusted EBITDA) | 2.90 | 3.23 | 3.28 |
Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2014 | ||||||||||||||||
Net Tons Sold (000's) | ||||||||||||||||
Paperboard Packaging | 624.2 | 654.4 | 679.4 | |||||||||||||
Flexible Packaging | ** | ** | ** | |||||||||||||
Net Sales ($ Millions): | ||||||||||||||||
Paperboard Packaging | $ | 964.7 | $ | 1,009.1 | $ | 1,050.0 | ||||||||||
Flexible Packaging | 108.0 | 107.6 | — | |||||||||||||
Total | $ | 1,072.7 | $ | 1,116.7 | $ | 1,050.0 | ||||||||||
Income (Loss) from Operations ($ Millions): | ||||||||||||||||
Paperboard Packaging | $ | 87.0 | $ | 119.3 | $ | 112.3 | ||||||||||
Flexible Packaging | (7.3 | ) | (172.2 | ) | — | |||||||||||
Total | $ | 79.7 | $ | (52.9 | ) | $ | 112.3 | |||||||||
2013 | ||||||||||||||||
Net Tons Sold (000's) | ||||||||||||||||
Paperboard Packaging | 653.1 | 663.9 | 683.2 | 637.7 | ||||||||||||
Flexible Packaging | ** | ** | ** | ** | ||||||||||||
Net Sales ($ Millions): | ||||||||||||||||
Paperboard Packaging | $ | 959.4 | $ | 994.9 | $ | 1,021.2 | $ | 963.5 | ||||||||
Flexible Packaging | 141.1 | 144.8 | 141.8 | 111.4 | ||||||||||||
Total | $ | 1,100.5 | $ | 1,139.7 | $ | 1,163.0 | $ | 1,074.9 | ||||||||
Income (Loss) from Operations ($ Millions): | ||||||||||||||||
Paperboard Packaging | $ | 91.8 | $ | 91.6 | $ | 99.9 | $ | 70.7 | ||||||||
Flexible Packaging | (6.6 | ) | (3.9 | ) | 5.8 | (7.7 | ) | |||||||||
Total | $ | 85.2 | $ | 87.7 | $ | 105.7 | $ | 63.0 | ||||||||
** Not meaningful |