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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Press Release dated October 24, 2018.
|
|
|
News
|
|
For Immediate Release
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|
4 Landmark Square
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|
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Suite 400
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|
Stamford, CT 06901
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|
|
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Telephone: 203-975-7110
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Fax: 203-975-7902
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Contact:
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Robert B. Lewis
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(203) 406-3160
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· |
Record net income per share of $0.76
|
· |
Record adjusted net income per share of $0.76, a 15 percent increase over prior year
|
· |
Record third quarter segment income in the closures business
|
· |
Continued significant improvement in the plastic container business
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Third Quarter
|
Nine Months
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net sales
|
$
|
1,307.0
|
$
|
1,266.9
|
$
|
3,378.4
|
$
|
3,094.1
|
||||||||
Cost of goods sold (1)
|
1,102.9
|
1,061.3
|
2,841.0
|
2,611.8
|
||||||||||||
Gross profit
|
204.1
|
205.6
|
537.4
|
482.3
|
||||||||||||
Selling, general and administrative expenses (1)
|
73.6
|
75.0
|
228.6
|
232.4
|
||||||||||||
Rationalization charges
|
0.3
|
0.6
|
1.5
|
4.5
|
||||||||||||
Other pension and postretirement income (1)
|
(8.3
|
)
|
(8.6
|
)
|
(27.5
|
)
|
(25.2
|
)
|
||||||||
Income before interest and income taxes
|
138.5
|
138.6
|
334.8
|
270.6
|
||||||||||||
Interest and other debt expense before loss
on early extinguishment of debt
|
28.2
|
30.6
|
88.6
|
80.2
|
||||||||||||
Loss on early extinguishment of debt
|
-
|
-
|
2.5
|
7.1
|
||||||||||||
Interest and other debt expense
|
28.2
|
30.6
|
91.1
|
87.3
|
||||||||||||
Income before income taxes
|
110.3
|
108.0
|
243.7
|
183.3
|
||||||||||||
Provision for income taxes
|
25.6
|
35.6
|
57.9
|
59.8
|
||||||||||||
Net income
|
$
|
84.7
|
$
|
72.4
|
$
|
185.8
|
$
|
123.5
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic net income per share
|
|
$0.77
|
|
$0.66
|
|
$1.68
|
|
$1.12
|
||||||||
Diluted net income per share
|
|
$0.76
|
|
$0.65
|
|
$1.66
|
|
$1.11
|
||||||||
Cash dividends per common share
|
|
$0.10
|
|
$0.09
|
|
$0.30
|
|
$0.27
|
||||||||
Weighted average shares (000's):
|
||||||||||||||||
Basic
|
110,657
|
110,391
|
110,599
|
110,327
|
||||||||||||
Diluted
|
111,693
|
111,427
|
111,609
|
111,323
|
(1) |
Includes the impact of the Accounting Standards Update issued by the Financial Accounting Standards Board which amended the presentation of net periodic pension and postretirement benefit costs to report certain components, including interest cost, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses, separately. These items have been restated from cost of goods sold and selling, general and administrative expenses to other pension and postretirement income for each of the quarters and nine months ended September 30, 2018 and 2017.
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net sales:
|
||||||||||||||||
Metal containers
|
$
|
797.8
|
$
|
772.4
|
$
|
1,808.6
|
$
|
1,768.3
|
||||||||
Closures
|
360.8
|
357.3
|
1,109.9
|
904.1
|
||||||||||||
Plastic containers
|
148.4
|
137.2
|
459.9
|
421.7
|
||||||||||||
Consolidated
|
$
|
1,307.0
|
$
|
1,266.9
|
$
|
3,378.4
|
$
|
3,094.1
|
||||||||
Segment income:
|
||||||||||||||||
Metal containers (a)
|
$
|
86.9
|
$
|
92.2
|
$
|
172.3
|
$
|
185.5
|
||||||||
Closures (b)
|
47.3
|
45.3
|
143.3
|
103.0
|
||||||||||||
Plastic containers (c)
|
8.5
|
6.5
|
32.7
|
20.0
|
||||||||||||
Corporate (d)
|
(4.2
|
)
|
(5.4
|
)
|
(13.5
|
)
|
(37.9
|
)
|
||||||||
Consolidated
|
$
|
138.5
|
$
|
138.6
|
$
|
334.8
|
$
|
270.6
|
||||||||
Sept. 30,
|
Sept. 30,
|
Dec. 31,
|
||||||||||
2018
|
2017
|
2017
|
||||||||||
Assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
171.4
|
$
|
199.2
|
$
|
53.5
|
||||||
Trade accounts receivable, net
|
783.3
|
702.3
|
454.6
|
|||||||||
Inventories
|
690.4
|
704.4
|
721.3
|
|||||||||
Other current assets
|
67.5
|
62.5
|
62.5
|
|||||||||
Property, plant and equipment, net
|
1,502.2
|
1,472.3
|
1,489.9
|
|||||||||
Other assets, net
|
1,843.4
|
1,880.4
|
1,863.6
|
|||||||||
Total assets
|
$
|
5,058.2
|
$
|
5,021.1
|
$
|
4,645.4
|
||||||
Liabilities and stockholders' equity:
|
||||||||||||
Current liabilities, excluding debt
|
$
|
726.5
|
$
|
678.9
|
$
|
849.4
|
||||||
Current and long-term debt
|
2,919.7
|
3,106.2
|
2,547.3
|
|||||||||
Other liabilities
|
500.1
|
612.9
|
482.6
|
|||||||||
Stockholders' equity
|
911.9
|
623.1
|
766.1
|
|||||||||
Total liabilities and stockholders' equity
|
$
|
5,058.2
|
$
|
5,021.1
|
$
|
4,645.4
|
(a)
|
Includes rationalization charges of $0.1 million and $0.4 million for the three months ended September 30, 2018 and 2017, respectively, and $0.8 million and $3.3 million for the nine months ended September 30, 2018 and 2017, respectively. Includes a $3.0 million charge for the nine months ended September 30, 2017 related to the resolution of a past non-commercial legal dispute.
|
(b)
|
Includes rationalization charges of $0.1 million for each of the three months ended September 30, 2018 and 2017 and $0.2 million and $0.5 million for the nine months ended September 30, 2018 and 2017, respectively.
|
(c)
|
Includes rationalization charges of $0.1 million for each of the three months ended September 30, 2018 and 2017 and $0.5 million and $0.7 million for the nine months September 30, 2018 and 2017, respectively.
|
(d)
|
Includes costs attributed to announced acquisitions of $0.8 million and $23.8 million for the three and nine months ended September 30, 2017, respectively.
|
2018
|
2017
|
|||||||
Cash flows provided by (used in) operating activities:
|
||||||||
Net income
|
$
|
185.8
|
$
|
123.5
|
||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
146.2
|
129.7
|
||||||
Rationalization charges
|
1.5
|
4.5
|
||||||
Loss on early extinguishment of debt
|
2.5
|
7.1
|
||||||
Other changes that provided (used) cash, net of
|
||||||||
effects from acquisition:
|
||||||||
Trade accounts receivable, net
|
(271.6
|
)
|
(285.9
|
)
|
||||
Inventories
|
(32.7
|
)
|
(2.9
|
)
|
||||
Trade accounts payable and other changes, net
|
(18.5
|
)
|
19.6
|
|||||
Net cash provided by (used in) operating activities
|
13.2
|
(4.4
|
)
|
|||||
Cash flows provided by (used in) investing activities:
|
||||||||
Purchase of business, net of cash acquired
|
-
|
(1,028.7
|
)
|
|||||
Capital expenditures
|
(134.6
|
)
|
(124.2
|
)
|
||||
Other investing activities
|
0.2
|
0.5
|
||||||
Net cash used in investing activities
|
(134.4
|
)
|
(1,152.4
|
)
|
||||
Cash flows provided by (used in) financing activities:
|
||||||||
Dividends paid on common stock
|
(33.8
|
)
|
(30.4
|
)
|
||||
Changes in outstanding checks – principally vendors
|
(87.8
|
)
|
(78.9
|
)
|
||||
Net borrowings and other financing activities
|
365.0
|
1,440.6
|
||||||
Net cash provided by financing activities
|
243.4
|
1,331.3
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(4.3
|
)
|
-
|
|||||
Cash and cash equivalents:
|
||||||||
Net increase
|
117.9
|
174.5
|
||||||
Balance at beginning of year
|
53.5
|
24.7
|
||||||
Balance at end of period
|
$
|
171.4
|
$
|
199.2
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net income per diluted share as reported
|
$
|
0.76
|
$
|
0.65
|
$
|
1.66
|
$
|
1.11
|
||||||||
Adjustments:
|
||||||||||||||||
Rationalization charges
|
-
|
-
|
0.01
|
0.03
|
||||||||||||
Loss on early extinguishment of debt
|
-
|
-
|
0.02
|
0.04
|
||||||||||||
Costs attributed to announced acquisitions
|
-
|
0.01
|
-
|
0.14
|
||||||||||||
Adjusted net income per diluted share
|
$
|
0.76
|
$
|
0.66
|
$
|
1.69
|
$
|
1.32
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||||||||
Estimated
|
Actual
|
Estimated
|
Actual
|
|||||||||||||||||||||
Low
|
High
|
Low
|
High
|
|||||||||||||||||||||
2018
|
2018
|
2017
|
2018
|
2018
|
2017
|
|||||||||||||||||||
Net income per diluted share as estimated
|
||||||||||||||||||||||||
for 2018 and as reported for 2017
|
$
|
0.34
|
$
|
0.39
|
$
|
1.31
|
$
|
2.00
|
$
|
2.05
|
$
|
2.42
|
||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Rationalization charges
|
-
|
-
|
0.01
|
0.01
|
0.01
|
0.04
|
||||||||||||||||||
Loss on early extinguishment of debt
|
-
|
-
|
-
|
0.02
|
0.02
|
0.04
|
||||||||||||||||||
Costs attributed to announced acquisitions
|
-
|
-
|
-
|
-
|
-
|
0.15
|
||||||||||||||||||
Effective tax rate adjustments
|
-
|
-
|
(1.00
|
)
|
-
|
-
|
(1.00
|
)
|
||||||||||||||||
Adjusted net income per diluted share as
estimated for 2018 and presented for 2017
|
$
|
0.34
|
$
|
0.39
|
$
|
0.32
|
$
|
2.03
|
$
|
2.08
|
$
|
1.65
|
(1)
|
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, costs attributed to announced acquisitions, the loss on early extinguishment of debt and the effective tax rate adjustments primarily due to the U.S. Tax Cuts and Jobs Act of 2017 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 attributed 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. The loss on early extinguishment of debt consists of third party fees and expenses incurred or debt costs written off that are viewed by management as part of the cost of prepayment of debt and not indicative of the on-going cost structure of the Company. The effective tax rate adjustments are primarily a result of the impact of the U.S. Tax Cuts and Jobs Act of 2017 principally as a result of the revaluation of the net deferred tax liabilities at the new lower estimated corporate tax rate and is viewed by the Company as a period adjustment that is not indicative of the effective tax rate of the Company. 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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