Delaware
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000-22117
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06-1269834
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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4 Landmark Square, Stamford, Connecticut
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06901
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(203) 975-7110
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N/A
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(Former name or former address, if changed since last report)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 2—Financial Information
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Item 2.02. Results of Operations and Financial Condition.
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Section 9—Financial Statements and Exhibits
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Item 9.01. Financial Statements and Exhibits.
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99.1
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Press Release dated July 23, 2014.
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SILGAN HOLDINGS INC. | |||
By:
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/s/ Frank W. Hogan, III | ||
Frank W. Hogan, III | |||
Senior Vice President, General Counsel | |||
and Secretary |
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INDEX TO EXHIBITS
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Exhibit No.
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Description
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99.1
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Press Release dated July 23, 2014.
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![]() |
News
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|||
For Immediate Release
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|||
4 Landmark Square
Suite 400
Stamford, CT 06901
Telephone: (203) 975-7110
Fax: (203) 975-7902
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|||
Contact:
Robert B. Lewis
(203) 406-3160
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· Net income of $0.69 per share
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· 14.1 percent increase in adjusted net income per share to a record $0.73
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· Net sales increased 4.2 percent
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· Continuation of successful integration of Portola Packaging
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Second Quarter
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Six Months
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|||||||||||||||
2014
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2013
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2014
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2013
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|||||||||||||
Net sales
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$ | 917.3 | $ | 880.0 | $ | 1,773.2 | $ | 1,675.8 | ||||||||
Cost of goods sold
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773.6 | 751.8 | 1,501.5 | 1,436.4 | ||||||||||||
Gross profit
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143.7 | 128.2 | 271.7 | 239.4 | ||||||||||||
Selling, general and administrative expenses
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56.7 | 52.4 | 115.1 | 104.1 | ||||||||||||
Rationalization charges
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0.9 | 0.9 | 2.5 | 2.3 | ||||||||||||
Income from operations
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86.1 | 74.9 | 154.1 | 133.0 | ||||||||||||
Interest and other debt expense before loss on
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||||||||||||||||
early extinguishment of debt
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19.0 | 15.4 | 37.6 | 30.7 | ||||||||||||
Loss on early extinguishment of debt
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- | - | 1.5 | 2.1 | ||||||||||||
Interest and other debt expense
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19.0 | 15.4 | 39.1 | 32.8 | ||||||||||||
Income before income taxes
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67.1 | 59.5 | 115.0 | 100.2 | ||||||||||||
Provision for income taxes
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23.1 | - | 39.5 | 15.2 | ||||||||||||
Net income
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$ | 44.0 | $ | 59.5 | $ | 75.5 | $ | 85.0 | ||||||||
Earnings per share:
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||||||||||||||||
Basic net income per share
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$0.69 | $0.93 | $1.19 | $1.31 | ||||||||||||
Diluted net income per share
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$0.69 | $0.93 | $1.18 | $1.30 | ||||||||||||
Cash dividends per common share
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$0.15 | $0.14 | $0.30 | $0.28 | ||||||||||||
Weighted average shares (000’s):
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||||||||||||||||
Basic
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63,525 | 63,710 | 63,511 | 65,068 | ||||||||||||
Diluted
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63,874 | 64,091 | 63,899 | 65,442 | ||||||||||||
Second Quarter
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Six Months
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|||||||||||||||
2014
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2013
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2014
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2013
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|||||||||||||
Net sales:
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Metal containers
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$ | 518.7 | $ | 531.2 | $ | 987.1 | $ | 994.9 | ||||||||
Closures
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232.2 | 181.4 | 446.0 | 342.6 | ||||||||||||
Plastic containers
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166.4 | 167.4 | 340.1 | 338.3 | ||||||||||||
Consolidated
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$ | 917.3 | $ | 880.0 | $ | 1,773.2 | $ | 1,675.8 | ||||||||
Income from operations:
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||||||||||||||||
Metal containers (a)
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$ | 50.9 | $ | 45.7 | $ | 91.4 | $ | 85.3 | ||||||||
Closures (b)
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25.2 | 21.7 | 43.0 | 32.3 | ||||||||||||
Plastic containers (c)
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13.0 | 11.5 | 25.8 | 21.9 | ||||||||||||
Corporate
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(3.0 | ) | (4.0 | ) | (6.1 | ) | (6.5 | ) | ||||||||
Consolidated
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$ | 86.1 | $ | 74.9 | $ | 154.1 | $ | 133.0 | ||||||||
June 30,
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June 30,
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Dec. 31,
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||||||||||
2014
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2013
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2013
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||||||||||
Assets:
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Cash and cash equivalents
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$ | 133.9 | $ | 113.2 | $ | 160.5 | ||||||
Trade accounts receivable, net
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447.7 | 448.6 | 333.0 | |||||||||
Inventories
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748.2 | 721.0 | 515.6 | |||||||||
Other current assets
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61.4 | 63.6 | 73.4 | |||||||||
Property, plant and equipment, net
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1,103.0 | 1,051.7 | 1,118.4 | |||||||||
Other assets, net
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1,146.7 | 811.0 | 1,120.2 | |||||||||
Total assets
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$ | 3,640.9 | $ | 3,209.1 | $ | 3,321.1 | ||||||
Liabilities and stockholders’ equity:
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||||||||||||
Current liabilities, excluding debt
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$ | 439.4 | $ | 393.7 | $ | 474.2 | ||||||
Current and long-term debt
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2,017.5 | 1,878.2 | 1,703.8 | |||||||||
Other liabilities
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426.3 | 389.3 | 429.3 | |||||||||
Stockholders’ equity
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757.7 | 547.9 | 713.8 | |||||||||
Total liabilities and stockholders’ equity
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$ | 3,640.9 | $ | 3,209.1 | $ | 3,321.1 |
(a)
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Includes rationalization charges of $0.3 million and $1.4 million for the three and six months ended June 30, 2013, respectively. Includes plant start-up costs of $0.8 million for the six months ended June 30, 2013.
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(b)
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Includes rationalization charges of $0.9 million and $0.2 million for the three months ended June 30, 2014 and 2013, respectively, and $1.5 million and $0.2 million for the six months ended June 30, 2014 and 2013, respectively. Includes losses from operations in Venezuela of $2.9 million and $1.1 million for the three months ended June 30, 2014 and 2013, respectively, and $3.4 million and $5.4 million for the six months ended June 30, 2014 and 2013, respectively.
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(c)
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Includes rationalization charges of $0.4 million for the three months ended June 30, 2013 and $1.0 million and $0.7 million for the six months ended June 30, 2014 and 2013, respectively.
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2014
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2013
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|||||||
Cash flows provided by (used in) operating activities:
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Net income
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$ | 75.5 | $ | 85.0 | ||||
Adjustments to reconcile net income to net cash
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||||||||
used in operating activities:
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Depreciation and amortization
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76.5 | 85.6 | ||||||
Rationalization charges
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2.5 | 2.3 | ||||||
Loss on early extinguishment of debt
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1.5 | 2.1 | ||||||
Other changes that provided (used) cash, net of
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||||||||
effects from acquisitions:
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Trade accounts receivable, net
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(116.4 | ) | (124.8 | ) | ||||
Inventories
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(234.6 | ) | (207.0 | ) | ||||
Trade accounts payable and other changes, net
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32.2 | (2.4 | ) | |||||
Net cash used in operating activities
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(162.8 | ) | (159.2 | ) | ||||
Cash flows provided by (used in) investing activities:
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Purchases of businesses, net of cash acquired
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- | (6.0 | ) | |||||
Capital expenditures
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(60.0 | ) | (53.0 | ) | ||||
Proceeds from asset sales
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0.3 | 6.4 | ||||||
Net cash used in investing activities
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(59.7 | ) | (52.6 | ) | ||||
Cash flows provided by (used in) financing activities:
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Dividends paid on common stock
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(19.4 | ) | (18.1 | ) | ||||
Changes in outstanding checks – principally vendors
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(86.5 | ) | (73.5 | ) | ||||
Shares repurchased under authorized repurchase program
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(7.7 | ) | (265.3 | ) | ||||
Net borrowings and other financing activities
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309.5 | 216.3 | ||||||
Net cash provided by (used in) financing activities
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195.9 | (140.6 | ) | |||||
Cash and cash equivalents:
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||||||||
Net decrease
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(26.6 | ) | (352.4 | ) | ||||
Balance at beginning of year
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160.5 | 465.6 | ||||||
Balance at end of period
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$ | 133.9 | $ | 113.2 |
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income per diluted share as reported
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$ | 0.69 | $ | 0.93 | $ | 1.18 | $ | 1.30 | ||||||||
Adjustments:
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||||||||||||||||
Tax audit adjustment
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- | (0.31 | ) | - | (0.30 | ) | ||||||||||
Rationalization charges
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0.01 | 0.01 | 0.02 | 0.02 | ||||||||||||
New plant start-up costs
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- | - | - | 0.01 | ||||||||||||
Loss on early extinguishment of debt
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- | - | 0.02 | 0.02 | ||||||||||||
Net results from operations in Venezuela
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0.03 | 0.01 | 0.04 | 0.06 | ||||||||||||
Adjusted net income per diluted share
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$ | 0.73 | $ | 0.64 | $ | 1.26 | $ | 1.11 |
Third Quarter
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Year Ended
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|||||||||||||||||||||||
September 30,
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December 31,
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|||||||||||||||||||||||
Estimated
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Actual
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Estimated
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Actual
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|||||||||||||||||||||
Low
2014
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High
2014
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2013
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Low
2014
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High
2014
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2013
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|||||||||||||||||||
Net income per diluted share as estimated | ||||||||||||||||||||||||
for 2014 and as reported for 2013
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$ | 1.24 | $ | 1.34 | $ | 1.21 | $ | 2.98 | $ | 3.18 | $ | 2.87 | ||||||||||||
Adjustments:
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Tax audit adjustment | - | - | - | - | - | (0.30 | ) | |||||||||||||||||
Rationalization charges
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0.01 | 0.01 | 0.01 | 0.06 | 0.06 | 0.12 | ||||||||||||||||||
New plant start-up costs
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- | - | - | - | - | 0.01 | ||||||||||||||||||
Costs attributable to announced acquisitions (2)
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- | - | 0.01 | - | - | 0.01 | ||||||||||||||||||
Loss on early extinguishment of debt
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- | - | - | 0.02 | 0.02 | 0.02 | ||||||||||||||||||
Net results from operations in Venezuela | - | - | - | 0.04 | 0.04 | 0.01 | ||||||||||||||||||
Adjusted net income per diluted share | ||||||||||||||||||||||||
as estimated for 2014 and presented for 2013
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$ | 1.25 | $ | 1.35 | $ | 1.23 | $ | 3.10 | $ | 3.30 | $ | 2.74 |
(1)
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The Company has presented adjusted net income per diluted share for the periods covered by this press release, which measure is a Non-GAAP financial measure. The Company’s management believes it is useful to exclude rationalization charges, new plant start-up costs, costs attributable to announced acquisitions, the loss on early extinguishment of debt, tax adjustments for prior periods related to the completion of Internal Revenue Service audits and net results from operations in Venezuela, including the impact from the remeasurement of net assets in Venezuela, from its net income per diluted share as calculated under U.S. generally accepted accounting principles because such Non-GAAP financial measure allows for a more appropriate evaluation of its operating results. While rationalization costs are incurred on a regular basis, management views these costs more as an investment to generate savings rather than period costs. Costs attributable to announced acquisitions consist of third party fees and expenses that are viewed by management as part of the acquisition and not indicative of the on-going cost structure of the Company. Due to the political environment in Venezuela and an increasingly restrictive monetary policy, the operations in Venezuela are unable to import raw materials on a regular basis. Therefore, management does not view the net results from operations in Venezuela to be meaningful or indicative. Such Non-GAAP financial measure is not in accordance with U.S. generally accepted accounting principles and should not be considered in isolation but should be read in conjunction with the unaudited condensed consolidated statements of income and the other information presented herein. Additionally, such Non-GAAP financial measure should not be considered a substitute for net income per diluted share as calculated under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures of other companies.
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