(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: July 26, 2022 | By: /s/ Lauren S. Tashma | ||||
Lauren S. Tashma | |||||
Executive Vice President, General Counsel and Secretary | |||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net Sales | $ | 2,358 | $ | 1,737 | $ | 4,603 | $ | 3,386 | ||||||||||||
Cost of Sales | 1,917 | 1,482 | 3,775 | 2,882 | ||||||||||||||||
Selling, General and Administrative | 185 | 125 | 366 | 251 | ||||||||||||||||
Other Expense, Net | 2 | 1 | — | 4 | ||||||||||||||||
Business Combinations, Shutdown and Other Special Charges, and Exit Activities, Net | 102 | 34 | 117 | 46 | ||||||||||||||||
Income from Operations | 152 | 95 | 345 | 203 | ||||||||||||||||
Nonoperating Pension and Postretirement Benefit Income | 1 | 1 | 3 | 3 | ||||||||||||||||
Interest Expense, Net | (48) | (29) | (90) | (59) | ||||||||||||||||
Income before Income Taxes and Equity Income of Unconsolidated Entity | 105 | 67 | 258 | 147 | ||||||||||||||||
Income Tax Expense | (39) | (26) | (85) | (44) | ||||||||||||||||
Income before Equity Income of Unconsolidated Entity | 66 | 41 | 173 | 103 | ||||||||||||||||
Equity Income of Unconsolidated Entity | — | 1 | — | 1 | ||||||||||||||||
Net Income | 66 | 42 | 173 | 104 | ||||||||||||||||
Net Income Attributable to Noncontrolling Interest | — | (4) | — | (12) | ||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 66 | $ | 38 | $ | 173 | $ | 92 | ||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic | $ | 0.21 | $ | 0.13 | $ | 0.56 | $ | 0.32 | ||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted | $ | 0.21 | $ | 0.13 | $ | 0.56 | $ | 0.32 | ||||||||||||
Weighted Average Number of Shares Outstanding - Basic | 309.2 | 295.1 | 309.0 | 285.5 | ||||||||||||||||
Weighted Average Number of Shares Outstanding - Diluted | 309.9 | 295.8 | 309.8 | 286.5 |
In millions, except share and per share amounts | June 30, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and Cash Equivalents | $ | 108 | $ | 172 | |||||||
Receivables, Net | 950 | 859 | |||||||||
Inventories, Net | 1,533 | 1,387 | |||||||||
Other Current Assets | 93 | 84 | |||||||||
Total Current Assets | 2,684 | 2,502 | |||||||||
Property, Plant and Equipment, Net | 4,601 | 4,677 | |||||||||
Goodwill | 1,974 | 2,015 | |||||||||
Intangible Assets, Net | 788 | 868 | |||||||||
Other Assets | 350 | 395 | |||||||||
Total Assets | $ | 10,397 | $ | 10,457 | |||||||
LIABILITIES | |||||||||||
Current Liabilities: | |||||||||||
Short-Term Debt and Current Portion of Long-Term Debt | $ | 292 | $ | 279 | |||||||
Accounts Payable | 1,008 | 1,125 | |||||||||
Other Accrued Liabilities | 708 | 645 | |||||||||
Total Current Liabilities | 2,008 | 2,049 | |||||||||
Long-Term Debt | 5,506 | 5,515 | |||||||||
Deferred Income Tax Liabilities | 612 | 579 | |||||||||
Other Noncurrent Liabilities | 379 | 421 | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Preferred Stock, par value $.01 per share; 100,000,000 shares authorized; no shares issued or outstanding | — | — | |||||||||
Common Stock, par value $0.01 per share; 1,000,000,000 shares authorized; 308,064,390 and 307,103,551 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 3 | 3 | |||||||||
Capital in Excess of Par Value | 2,044 | 2,046 | |||||||||
Retained Earnings | 188 | 66 | |||||||||
Accumulated Other Comprehensive Loss | (345) | (224) | |||||||||
Total Graphic Packaging Holding Company Shareholders' Equity | 1,890 | 1,891 | |||||||||
Noncontrolling Interest | 2 | 2 | |||||||||
Total Equity | 1,892 | 1,893 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 10,397 | $ | 10,457 |
Six Months Ended | |||||||||||
June 30, | |||||||||||
In millions | 2022 | 2021 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net Income | $ | 173 | $ | 104 | |||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Depreciation and Amortization | 278 | 234 | |||||||||
Deferred Income Taxes | 40 | 31 | |||||||||
Amount of Postretirement Expense (Less) Greater Than Funding | (5) | (10) | |||||||||
Impairment Charges related to Divestiture | 92 | — | |||||||||
Other, Net | 19 | 49 | |||||||||
Changes in Operating Assets and Liabilities | (309) | (103) | |||||||||
Net Cash Provided by Operating Activities | 288 | 305 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital Spending | (351) | (329) | |||||||||
Packaging Machinery Spending | (10) | (17) | |||||||||
Acquisition of Businesses, Net of Cash Acquired | — | — | |||||||||
Beneficial Interest on Sold Receivables | 54 | 64 | |||||||||
Beneficial Interest Obtained in Exchange for Proceeds | (2) | (5) | |||||||||
Other, Net | (2) | (2) | |||||||||
Net Cash Used in Investing Activities | (311) | (289) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Repurchase of Common Stock | (7) | — | |||||||||
Proceeds from Issuance of Debt | — | 1,225 | |||||||||
Retirement of Long-Term Debt | — | (1,226) | |||||||||
Payments on Debt | (7) | (9) | |||||||||
Borrowings under Revolving Credit Facilities | 2,517 | 1,827 | |||||||||
Payments on Revolving Credit Facilities | (2,480) | (1,691) | |||||||||
Redemption of Noncontrolling Interest | — | (150) | |||||||||
Repurchase of Common Stock related to Share-Based Payments | (17) | (14) | |||||||||
Debt Issuance Costs | — | (14) | |||||||||
Dividends and Distributions Paid to GPIP Partner | (46) | (48) | |||||||||
Other, Net | 10 | (5) | |||||||||
Net Cash Used In Financing Activities | (30) | (105) | |||||||||
Effect of Exchange Rate Changes on Cash | (7) | (1) | |||||||||
Net Decrease in Cash and Cash Equivalents | (60) | (90) | |||||||||
Cash and Cash Equivalents at Beginning of Period | 172 | 179 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD (includes $4 million classified as held for sale as of June 30, 2022) | $ | 112 | $ | 89 | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 66 | $ | 38 | $ | 173 | $ | 92 | |||||||||||||||
Add (Subtract): | |||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | — | 4 | — | 12 | |||||||||||||||||||
Income Tax Expense | 39 | 26 | 85 | 44 | |||||||||||||||||||
Equity Income of Unconsolidated Entity | — | (1) | — | (1) | |||||||||||||||||||
Interest Expense, Net | 48 | 29 | 90 | 59 | |||||||||||||||||||
Depreciation and Amortization | 141 | 118 | 281 | 236 | |||||||||||||||||||
EBITDA | $ | 294 | $ | 214 | $ | 629 | $ | 442 | |||||||||||||||
Charges Associated with Business Combinations, Shutdown and Other Special Charges | 102 | 34 | 117 | 46 | |||||||||||||||||||
Adjusted EBITDA | $ | 396 | $ | 248 | $ | 746 | $ | 488 | |||||||||||||||
Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales) | 16.8 | % | 14.3 | % | 16.2 | % | 14.4 | % | |||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 66 | $ | 38 | $ | 173 | $ | 92 | |||||||||||||||
Charges Associated with Business Combinations, Shutdown and Other Special Charges | 102 | 34 | 117 | 46 | |||||||||||||||||||
Accelerated Depreciation Related to Shutdown | 3 | 5 | 7 | 10 | |||||||||||||||||||
Tax Impact of Business Combinations, Shutdown and Other Special Charges, Accelerated Depreciation and Tax Charges | (3) | (1) | 3 | (5) | |||||||||||||||||||
Noncontrolling Interest, Net of Tax | — | — | — | (2) | |||||||||||||||||||
Amortization Related to Purchased Intangible Assets, Net of Tax | 17 | 11 | 34 | 22 | |||||||||||||||||||
Adjusted Net Income Attributable to Graphic Packaging Holding Company (a) | $ | 185 | $ | 87 | $ | 334 | $ | 163 | |||||||||||||||
Adjusted Earnings Per Share - Basic (a) | $ | 0.60 | $ | 0.29 | $ | 1.08 | $ | 0.57 | |||||||||||||||
Adjusted Earnings Per Share - Diluted (a) | $ | 0.60 | $ | 0.29 | $ | 1.08 | $ | 0.57 | |||||||||||||||
Twelve Months Ended | |||||||||||||||||
June 30, | June 30, | December 31, | |||||||||||||||
In millions | 2022 | 2021 | 2021 | ||||||||||||||
Net Income | $ | 285 | $ | 220 | $ | 204 | |||||||||||
Add (Subtract): | |||||||||||||||||
Net Income Attributable to Noncontrolling Interest | — | 40 | 12 | ||||||||||||||
Income Tax Expense | 115 | 73 | 74 | ||||||||||||||
Equity Income of Unconsolidated Entity | — | (2) | (1) | ||||||||||||||
Interest Expense, Net | 154 | 124 | 123 | ||||||||||||||
Depreciation and Amortization | 539 | 478 | 494 | ||||||||||||||
EBITDA | 1,093 | 933 | 906 | ||||||||||||||
Charges Associated with Business Combinations, Shutdown and Other Special Charges | 221 | 69 | 150 | ||||||||||||||
Pension Plan Settlement Charge | — | 1 | — | ||||||||||||||
Adjusted EBITDA | $ | 1,314 | $ | 1,003 | $ | 1,056 | |||||||||||
June 30, | June 30, | December 31, | |||||||||||||||
Calculation of Net Debt: | 2022 | 2021 | 2021 | ||||||||||||||
Short-Term Debt and Current Portion of Long-Term Debt | $ | 292 | $ | 20 | $ | 279 | |||||||||||
Long-Term Debt (a) | 5,539 | 3,768 | 5,552 | ||||||||||||||
Less: | |||||||||||||||||
Cash and Cash Equivalents | (108) | (89) | (172) | ||||||||||||||
Total Net Debt | $ | 5,723 | $ | 3,699 | $ | 5,659 | |||||||||||
Net Leverage Ratio (Total Net Debt/Adjusted EBITDA) | 4.36 | 3.69 | 5.36 |
Six Months Ended | |||||||||||
June 30, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Net Cash Provided by Operating Activities | $ | 288 | $ | 305 | |||||||
Net Cash Receipts from Receivables Sold included in Investing Activities | 52 | 59 | |||||||||
Cash Payments Associated with Business Combinations and Shutdown and Other Special Charges | 27 | 49 | |||||||||
Adjusted Net Cash Provided by Operating Activities | $ | 367 | $ | 413 | |||||||
Capital Spending | (361) | (346) | |||||||||
Adjusted Cash Flow | $ | 6 | $ | 67 |
Calculation of Net Organic Sales Growth: | Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net Sales | $ | 2,358 | $ | 1,737 | $ | 4,603 | $ | 3,386 | ||||||||||||
Open Market Paperboard Sales (Paperboard Mills Segment) | (292) | (244) | (588) | (481) | ||||||||||||||||
Impact of Purchased Sales from Acquisitions (a) | — | 299 | — | 605 | ||||||||||||||||
Impact of Pricing (b) | (248) | — | (433) | — | ||||||||||||||||
Impact of Foreign Exchange | 36 | — | 47 | — | ||||||||||||||||
Net Organic Sales | $ | 1,854 | $ | 1,792 | $ | 3,629 | $ | 3,510 | ||||||||||||
Net Organic Sales Growth | 3.5 | % | 3.4 | % |
Cover Page |
Jul. 26, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 26, 2022 |
Entity Registrant Name | GRAPHIC PACKAGING HOLDING CO |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-33988 |
Entity Tax Identification Number | 26-0405422 |
Entity Address, Address Line One | 1500 Riveredge Parkway |
Entity Address, Address Line Two | Suite 100 |
Entity Address, City or Town | Atlanta |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30328 |
City Area Code | 770 |
Local Phone Number | 240-7200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | GPK |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001408075 |
Amendment Flag | false |
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