- 2013 Adjusted EBITDA increased 7.3%,
excluding impact of SARs, and generated $509 million of Free Cash
Flow
- 2013 Adjusted EPS from Continuing
Operations of $1.23, including $0.16 of SARs expense; Reported EPS
from Continuing Operations of $0.44
- Q4 Adjusted EPS from Continuing
Operations of $0.34, including $0.05 of SARs expense; Reported EPS
from Continuing Operations of $0.02
- Closed sale of Medical Rigids business
on December 6, 2013 and recognized $0.14 per share in 2013 in
discontinued operations, including a $0.10 per share gain on the
sale
- Completed W. R. Grace & Co.
Settlement agreement in February 2014, marking a significant
milestone for Company
- Company provides outlook for 2014 Net
Sales, Adjusted EBITDA, Adjusted EPS and Free Cash Flow
Sealed Air Corporation (NYSE:SEE) today announced financial
results for fourth quarter and full year 2013. Commenting on these
results, Jerome A. Peribere, President and Chief Executive Officer,
said, “2013 was a solid year for Sealed Air – we generated $509
million of Free Cash Flow, increased net sales by 2.7% in constant
dollars to $7.7 billion and increased Adjusted EBITDA by 7.3%
excluding SARs. In the fourth quarter, we delivered favorable
price/mix in every division and in every region. We made
significant progress on our ‘Get Fit’ strategy and, as we move
forward, we are well positioned to ‘Change the Game.’ Our focus
will continue to be on improving the quality of our business.”
Peribere continued, “The completion of the W. R. Grace & Co.
Settlement agreement is a significant development for Sealed Air.
It brings closure to this matter after more than a decade, we will
no longer incur interest on the settlement liability, and we also
anticipate meaningful cash tax benefits over the next several
years. This will provide Sealed Air with more financial flexibility
and enable us to continue to add value to our business and
shareholders alike.”
Unless otherwise stated, all results compare 2013 to 2012 and
include continuing operations. The rigid medical packaging business
(“Medical Rigids”), which the Company sold in December 2013, and
Diversey Japan, which the Company sold in November 2012, have been
presented as discontinued operations. Reported information is
defined as U.S. GAAP. Year-over-year net sales discussions present
both reported and constant dollar performance. Constant dollar
sales performance excludes the impact of currency translation.
Additionally, non-U.S. GAAP adjusted financial measures, such as
Adjusted Earnings Before Interest, Taxes and Depreciation and
Amortization (“Adjusted EBITDA”), Adjusted Diluted Earnings Per
Share (“Adjusted EPS”) and Core Tax Rate exclude the impact of
special items, such as restructuring charges and other one-time
items. Additional detail on cash-settled stock appreciation rights
(“SARs”) granted as part of the Diversey acquisition is provided in
the supplementary information.
Business and Financial
Highlights
- In the fourth quarter 2013, the Food
Care division increased sales by 4.2% in constant dollars primarily
due to favorable price/mix of 3.2% and continued strength in Latin
America and Asia, Middle East, Africa and Turkey (“AMAT”). In the
full year 2013, the Food Care division had strong performance,
delivering 3.3% sales growth in constant dollars and increasing
Adjusted EBITDA, excluding SARs, by 8.1% to $578.6 million, or
15.2% of net sales. Food Care increased volumes by 1.7% and had a
favorable price mix of 1.6%.
- The Diversey Care division, which is
undergoing a multi-year turn around, continues to make significant
operational and financial improvements. In the fourth quarter 2013,
Adjusted EBITDA, excluding SARs, increased 9.5% to $56.5 million,
or 10.4% of net sales. In the full year 2013, Adjusted EBITDA,
excluding SARs, increased 6.4% to $223.1 million, or 10.3% of net
sales. The increase in Adjusted EBITDA in the fourth quarter and
full year 2013 was primarily attributable to favorable pricing and
realization of cost synergies.
- The Product Care division has been
focused on improving the mix of its product portfolio and
implementing new initiatives to improve pricing disciplines. This
strategy resulted in a favorable price/mix of 1.7% in the fourth
quarter 2013 on a 3.1% increase in volumes.
- As it relates to the W. R. Grace &
Co. matter, Sealed Air will no longer incur interest expense
related to the settlement liability, which amounted to $48 million
in 2013, and the Company anticipates a cash tax benefit in 2015 of
more than $200 million. The Company funded the $930 million
liability with cash on hand and committed liquidity. In addition,
the Company issued 18 million shares which were previously reserved
for the Settlement agreement and such shares continued to be
included in the diluted shares outstanding.
Fourth Quarter and Full Year 2013
Summary
Fourth quarter 2013 net sales from continuing operations of $2.0
billion increased 3.0% on a reported basis and 4.1% in constant
dollars. Volume and product price/mix increased by 1.4% and 2.7%,
respectively, in the quarter. For the full year 2013, net sales
totaled $7.7 billion, a reported increase of 1.7% and 2.7% in
constant dollars. Volume and product price/mix for the full year
increased 1.5% and 1.2%, respectively. Approximately $90 million of
net sales from Medical Rigids were reported in discontinued
operations.
In the fourth quarter 2013, the Company delivered 8.0% growth in
AMAT and 6.7% in Latin America and experienced improving trends in
Europe with 2.6% net sales growth, in constant dollars. North
America and Japan, Australia and New Zealand (“JANZ”) also
contributed to solid growth with increases of 3.6% and 2.7%,
respectively. For the full year 2013, net sales increased 8.8% for
AMAT, 9.7% for Latin America, and 2.1% for North America. Net sales
in Europe and JANZ were essentially unchanged compared to a year
ago. Additionally, 2013 reported net sales from Developing Regions1
increased 5.1%, or 8.9% in constant dollars, accounting for 25.7%
of total net sales.
Adjusted EBITDA from continuing operations for the fourth
quarter 2013 of $261.8 million, or 13.0% of net sales, was
comparable to fourth quarter 2012. Excluding the impact of SARs,
Adjusted EBITDA was $273.1 million, or 13.6% of net sales, compared
to $275.1 million, or 14.1% of net sales, in 2012. The margin
decline in the fourth quarter was primarily attributable to higher
selling, general and administrative costs and unfavorable supply
chain costs, partially offset by cost synergies, favorable mix and
price/cost spread and volume growth. The higher costs were partly
attributable to an increase of approximately $17 million in
performance compensation recorded in the fourth quarter 2013, as
compared to the same period a year ago, in recognition of the
strong full year-over-year performance in Adjusted EBITDA, working
capital management and other key financial metrics.
Full year 2013 Adjusted EBITDA was $1.03 billion, or 13.5% of
net sales. This compares to $981.3 million, or 13.0% of net sales
in 2012. Excluding the impact of SARs, Adjusted EBITDA was $1.07
billion, or 13.9% of net sales. This represents a 7.3% increase
compared to Adjusted EBITDA of $1.0 billion in 2012, or 13.2% of
net sales. This increase was primarily due to higher sales and
realization of cost synergies. Incremental cost synergies under the
2011-2014 Integration and Optimization Program were approximately
$110 million in 2013 and primarily resulted from headcount
reductions, elimination of redundant costs, plant consolidations
and procurement and logistics savings. Approximately $15 million of
Adjusted EBITDA from Medical Rigids was reported in discontinued
operations in each of 2012 and 2013.
On a reported basis, fourth quarter 2013 EPS from continuing
operations was $0.02, which included $0.32 per share of special
items primarily consisting of a $50 million ($0.23 per share)
increase to the Company’s income tax provision resulting from an
increase in its valuation allowance with respect to the deferred
tax asset related to the W. R. Grace & Co. Settlement
agreement. This compares to a loss from continuing operations of
$1.79 per share in 2012, which included $2.11 of special items,
mostly due to the non-cash impairment of goodwill and other
intangible assets. Adjusted EPS from continuing operations was
$0.34 for the fourth quarter. The Company recognized $0.11 per
share in discontinued operations from the sale of Medical Rigids,
including a $0.10 per share gain on the sale. This compares to
Adjusted EPS of $0.32 in 2012. SARs had an unfavorable impact of
$0.05 in the fourth quarters of both 2013 and 2012. The core tax
rate was 20.0% in the fourth quarter 2013, compared to 21.9% in the
fourth quarter 2012.
For the full year 2013, reported EPS from continuing operations
was $0.44, which included $0.79 per share of special items, mostly
due to restructuring charges and the increase in the valuation
allowance discussed above. The reported loss of $8.39 per share in
2012 included $9.31 of special items due to the non-cash impairment
of goodwill and other intangible assets. Adjusted EPS from
continuing operations was $1.23. The Company recognized $0.14 per
share in discontinued operations from the sale of Medical Rigids,
including $0.10 per share gain on the sale. This compares to $0.91
in 2012. Adjusted EPS from continuing operations for the full year
2013, excluding SARs, was $1.39, as compared to $0.98 in 2012. The
core tax rate was 21.8% in 2013, compared to 26.1% in 2012 and a
year-over-year benefit of $0.07 per share.
Cash Flow and Net Debt
As the Company prepared for the W. R. Grace & Co. Settlement
agreement, it focused considerable efforts during the last few
months of the year on accelerated cash generation, contributing to
the net cash provided by operating activities of $624.8 million in
2013. This amount was net of $107.0 million of cash payments for
restructuring activities and $46.0 million of cash payments for
SARs. In 2012, net cash provided by operating activities was $394.2
million, which was net of $103.4 million of cash payments for
restructuring activities and $24.0 million of cash payments for
SARs. Capital expenditures were $116.0 million in the full year
2013 as compared to $122.8 million in 2012. Free Cash Flow, defined
as cash flow provided by operating activities less capital
expenditures, was $508.8 million in 2013, as compared to $271.4
million in 2012. This year-over-year increase primarily reflects
higher net earnings and net working capital improvements.
Compared to December 31, 2012, the Company’s net debt decreased
$446.9 million to $4.3 billion as of December 31, 2013. This
decrease was primarily due to cash generated from operating
activities and proceeds from the sale of Medical Rigids, partially
offset by capital expenditures of $116.0 million and dividend
payments of $102.0 million. Net debt included the W. R. Grace &
Co. Settlement agreement and related accrued interest of $925.1
million.
Outlook for Full Year
2014
The Company expects net sales to be relatively flat compared to
2013 net sales of $7.7 billion with organic growth offset by
product rationalization and an estimated unfavorable impact of more
than 2% from foreign currency translation. Adjusted EPS, excluding
the impact of SARs, is expected to be in the range of $1.50 to
$1.60. This represents an estimated increase of 8% to 15% compared
with 2013 Adjusted EPS, excluding SARs, of $1.39. Adjusted EPS
guidance excludes the impact of special items. The Company’s core
tax rate for 2014 is expected to increase to approximately 25%.
Adjusted EBITDA for 2014, including non-cash profit sharing
expense and excluding the impact of SARs, is estimated to be in the
range of $1.050 billion to $1.070 billion. This represents an
estimated increase of 1% to 3% compared with 2013 Adjusted EBITDA
of $1.038 billion, including non-cash profit sharing expense and
excluding the impact of SARs.
For 2014, the Company anticipates capital expenditures of
approximately $170 million and cash restructuring payments of
approximately $150 million. As a result of higher capital
expenditures and restructuring payments in 2014 as compared to
2013, the Company anticipates 2014 Free Cash Flow to be
approximately $410 million.
Web Site and Conference Call
Information
Jerome A. Peribere, Sealed Air’s President and Chief Executive
Officer and Carol P. Lowe, Senior Vice President and Chief
Financial Officer, will conduct an investor conference call today
at 10:00 a.m. (ET) to discuss the Company’s earnings results. The
conference call will be webcast live on the Company’s web site at
www.sealedair.com in the Investor Relations section. The link to
the event can be found on the Investor Relations home page as well
as under the Presentations & Events tab. Listeners should go to
the web site prior to the call to register and to download and
install any necessary audio software. A replay of the webcast will
also be available on the Company’s web site.
Investors who cannot access the webcast may listen to the
conference call live via telephone by dialing (888) 680-0879
(domestic) or (617) 213-4856 (international) and use the
participant code 98241331. Telephonic replay of the webcast will be
available starting at 2:00 p.m. (ET) on Thursday, February 6, 2014
and end on Thursday, March 13, 2014 at 11:59 p.m. (ET). To listen
to the replay, please dial (888) 286-8010 (domestic) or (617)
801-6888 (international) and use the confirmation code
89999919.
Business
Sealed Air Corporation creates a world that feels, tastes and
works better. In 2013, the Company generated revenue of
approximately $7.7 billion by helping our customers achieve their
sustainability goals in the face of today’s biggest social and
environmental challenges. Our portfolio of widely recognized
brands, including Cryovac® brand food packaging solutions, Bubble
Wrap® brand cushioning and Diversey™ cleaning and hygiene
solutions, ensures a safer and less wasteful food supply chain,
protects valuable goods shipped around the world, and improves
health through clean environments. Sealed Air has approximately
25,000 employees who serve customers in 175 countries. To learn
more, visit www.sealedair.com.
Non-U.S. GAAP
Information
In this press release and supplement, we have included several
non-U.S. GAAP financial measures, including Adjusted Net Earnings
and EPS, net sales on a "constant dollar" basis, Adjusted Gross
Profit, Adjusted Operating Profit, Free Cash Flow and EBIT, EBITDA,
Adjusted EBITDA and core tax rate. We present results and guidance,
adjusted to exclude the effects of certain specified items
(“special items”) and their related tax impact that would otherwise
be included under U.S. GAAP, to aid in comparisons with other
periods or prior guidance. We may use Adjusted EPS, net sales on a
constant dollar basis, Adjusted Net Earnings, Adjusted Gross
Profit, Adjusted Operating Profit, measures of free cash flow, net
debt, and EBITDA figures to determine performance-based
compensation. Our management uses financial measures excluding the
effects of foreign currency translation in evaluating operating
performance. Management believes that this information may be
useful to investors. For a reconciliation of these non-U.S. GAAP
metrics to U.S. GAAP and other important information on our use of
non-U.S. GAAP financial measures, see the attached supplementary
information entitled “Non-U.S. GAAP Free Cash Flow,”
“Reconciliation of U.S. GAAP Condensed Consolidated Statements of
Operations to Non-U.S. GAAP Adjusted Condensed Consolidated
Statements of Operations and Non-U.S. GAAP Adjusted EBITDA,”
“Segment and Consolidated Adjusted Operating Profit and Adjusted
EBITDA,” and “Components of Change in Net Sales - Segments and
Other.”
Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by such words as
“anticipates,” “believes,” “plan,” “assumes,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans to,” “will” and similar
expressions. These statements reflect our beliefs and expectations
as to future events and trends affecting our business, our
consolidated financial position and our results of operations.
Examples of these forward-looking statements include expectations
regarding our anticipated effective income tax rate, the potential
cash tax benefits associated with the W. R. Grace & Co.
Settlement agreement (as defined in the Company’s Quarterly Reports
on Form 10-Q and Annual Reports on Form 10-K), potential volume,
revenue and operating growth for future periods, expectations and
assumptions associated with our restructuring programs,
availability and pricing of raw materials, success of our growth
initiatives, economic conditions, and the success of pricing
actions. A variety of factors may cause actual results to differ
materially from these expectations, including general domestic and
international economic and political conditions, changes in our raw
material and energy costs, credit ratings, the success of
restructuring plans, currency translation and devaluation effects,
the competitive environment, the effects of animal and food-related
health issues, environmental matters, and regulatory actions and
legal matters. For more extensive information, see “Risk Factors”
and “Cautionary Notice Regarding Forward-Looking Statements,” which
appear in our most recent Annual Report on Form 10-K, as filed with
the Securities and Exchange Commission, and as revised and updated
by our Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. While we may elect to update these forward-looking statements
at some point in the future, we specifically disclaim any
obligation to do so, whether as a result of new information, future
events, or otherwise.
1 Developing Regions are Africa, Asia (excluding Japan and South
Korea), Central and Eastern Europe, and Latin America.
SEALED AIR
CORPORATION SUPPLEMENTARY INFORMATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Unaudited) (In millions, except per share data)
Three Months Ended Year Ended December
31, December 31, 2013 2012 2013
2012 Revised (2) Revised (2)
Net sales $
2,012.5 $ 1,955.9 $ 7,690.8
$ 7,559.2 Cost of sales 1,346.2 1,309.9
5,103.3 5,036.9
Gross profit 666.3
646.0 2,587.5 2,522.3 As a % of total net
sales 33.1 % 33.0 % 33.6 % 33.4 % Selling, general and
administrative expenses 438.6 426.1 1,749.2 1,756.7 As a % of total
net sales 21.8 % 21.8 % 22.7 % 23.2 % Amortization expense of
intangible assets acquired 30.8 34.1 123.2 132.7 Impairment of
goodwill and other intangible assets(3) - 558.0 - 1,892.3 Stock
appreciation rights expense(4) 11.3 12.8 38.1 18.4 Costs related to
the acquisition and integration of Diversey 0.4 2.6 1.1 7.4
Restructuring and other charges 12.6 32.4 73.8
142.5
Operating profit (loss) 172.6
(420.0 ) 602.1 (1,427.7 ) As a %
of total net sales 8.6 % -21.5 % 7.8 % -18.9 % Interest expense
(91.6 ) (93.5 ) (361.0 ) (384.7 ) Impairment of equity method
investment - - - (23.5 ) Foreign currency exchange losses related
to Venezuelan subsidiaries (0.2 ) (0.1 ) (13.1 ) (0.4 ) Loss on
debt redemption(5) (3.9 ) (36.9 ) (36.3 ) (36.9 ) Other expense,
net (9.2 ) (1.1 ) (14.0 ) (9.4 )
Income (loss) from continuing
operations before income tax provision 67.7
(551.6 ) 177.7 (1,882.6 ) Income
tax provision (benefit)(6) 64.1 (206.4 ) 84.0 (264.7
) Effective income tax rate(6) 94.7 % 37.4 % 47.3 % 14.1 %
Net
earnings (loss) from continuing operations 3.6
(345.2 ) 93.7 (1,617.9 ) Net
earnings from discontinued operations(2) 24.0 186.9
30.5 207.6
Net earnings (loss) available to common
stockholders $ 27.6 $ (158.3
) $ 124.2 $ (1,410.3
) Net earnings (loss) per common share:
Basic:
Continuing operations $ 0.02
$ (1.79 )
$ 0.48
$ (8.39 )
Discontinued operations 0.12
0.97 0.16 1.08
Net earnings (loss)
per common share - basic $ 0.14 $
(0.82 ) $ 0.64 $
(7.31 ) Diluted: Continuing
operations $ 0.02
$ (1.79 )
$ 0.44
$ (8.39 )
Discontinued operations 0.11 0.97
0.14 1.08
Net earnings (loss) per common
share - diluted $ 0.13 $
(0.82 ) $ 0.58 $
(7.31 ) Dividends per common share
$ 0.13 $ 0.13 $
0.52 $ 0.52 Weighted
average number of common shares outstanding: Basic
194.9 193.3 194.6
192.8 Diluted(7) 213.9
193.3 213.5 192.8
(1) The supplementary
information included in this press release for 2013 is preliminary
and subject to change prior to the filing of our upcoming Annual
Report on Form 10-K with the Securities and Exchange Commission.
(2) In December 2013, we completed the sale of our rigid
medical packaging business for net cash proceeds of $121.0 million.
In November 2012, we sold our Diversey Japan business for net cash
proceeds of $313 million. Our 2013 results include a net gain of
$23 million from the sale of our medical rigids business. Our 2012
results include a net gain of $179 million from the sale of our
Diversey Japan business. The financial results of both the rigid
medical business and Diversey Japan businesses are reported as
discontinued operations, net of tax, and, accordingly all
previously reported financial information has been revised.
(3) In 2012, we recorded non-cash impairment charges related to the
goodwill and other intangible assets associated with our Diversey
acquisition. See our 2012 Annual Report on Form 10-K and September
2013 Quarterly Report on Form 10-Q for further details. (4)
At December 31, 2013, the weighted average remaining vesting life
of outstanding cash-settled stock appreciation rights ("SAR"s) was
less than one year. However, we will continue to incur expense
related to these SARs until the last expiration date of these
awards (March 2021). The amount of related future expense will
fluctuate based on exercise and forfeiture activity and changes in
the assumptions used in the valuation model, including the price of
Sealed Air common stock. (5) In 2013 and 2012, we completed
several financing transactions, which resulted in the recognition
of pre-tax losses on debt redemptions primarily due to the
acceleration of unamortized debt issuance costs and certain fees.
(6) In the three month ended 2013, we recorded a $50 million
increase to our income tax provision resulting from an increase in
the valuation allowance with respect to the deferred tax asset in
connection with the Settlement agreement. (7) For 2012,
basic and diluted weighted average number of common shares
outstanding were the same because the effect of the assumed
issuance of 18 million shares of common stock reserved for the
Settlement agreement (as defined in our 2012 Annual Report on Form
10-K) and the effect of non-vested stock was anti-dilutive due to
the reported net loss from continuing operations.
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION CONDENSED CONSOLIDATED BALANCE
SHEETS(1) (Unaudited) (In millions)
December 31, December 31, 2013 2012
Revised(2)
Assets Current assets: Cash and cash equivalents
$ 992.4 $ 679.6 Trade receivables, net 1,126.4 1,213.0 Other
receivables 147.9 100.9 Inventories 688.4 728.9 Assets held for
sale - 87.3 Other current assets 464.9 479.6
Total
current assets 3,420.0 3,289.3 Property and
equipment, net 1,134.5 1,194.2 Goodwill 3,114.6 3,151.2 Intangible
assets, net 1,016.9 1,131.6 Other assets, net 440.1 565.4
Total assets $ 9,126.1 $
9,331.7 Liabilities and stockholders'
equity Current liabilities: Short-term borrowings $ 81.6 $ 39.2
Current portion of long-term debt 223.0 1.8 Accounts payable 524.5
480.2 Settlement agreement and related accrued interest 925.1 876.9
Liabilities held for sale - 8.8 Other current liabilities 974.3
928.1
Total current liabilities 2,728.5
2,335.0 Long-term debt, less current portion 4,094.9 4,540.8
Other liabilities 912.5 1,011.6
Total
liabilities 7,735.9 7,887.4 Total
parent company stockholders' equity 1,388.8 1,443.8 Noncontrolling
interests 1.4 0.5
Total stockholders' equity
1,390.2 1,444.3 Total liabilities
and stockholders' equity $ 9,126.1
$ 9,331.7 CALCULATION OF NET DEBT
FROM CONTINUING OPERATIONS(1) (Unaudited) (In
millions) December 31, December 31,
2013 2012 Short-term borrowings
$
81.6
$39.2 Current portion of long-term debt 223.0 1.8 Settlement
agreement and related accrued interest 925.1 876.9 Long-term debt,
less current portion 4,094.9 4,540.8 Total debt
5,324.6 5,458.7 Less: cash and cash equivalents (992.4 ) (679.6 )
Net debt
$
4,332.2
$
4,779.1
(1) The supplementary information included in this press
release for 2013 is preliminary and subject to change prior to the
filing of our upcoming Annual Report on Form 10-K with the
Securities and Exchange Commission. (2) In December 2013, we
completed the sale of our rigid medical packaging business, which
was included in our Other Category. In November 2012, we sold our
Diversey Japan business. The financial results of both the rigid
medical business and Diversey Japan businesses are reported as
discontinued operations, net of tax, and, accordingly all
previously reported financial information has been revised.
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(1) (Unaudited) (In millions)
Year Ended December 31, 2013 2012
Revised(2) Net earnings (loss) available to common stockholders -
continuing operations $ 93.7 $ (1,617.9 ) Adjustments to reconcile
net earnings (loss) to net cash provided by operating activities -
continuing operations(3) 426.8 2,024.8 Changes in: Trade
receivables, net 35.5 (26.4 ) Inventories 24.5 33.4 Accounts
payable 36.3 (84.3 ) Other operating assets and liabilities
8.0 64.6
Cash flow provided by operating
activities - continuing operations 624.8 394.2
Capital expenditures for property and equipment (116.0 )
(122.8 ) Other investing activities 10.5 7.9
Cash flow (used in) investing activities - continuing
operations (105.5 ) (114.9 )
Net payments of long-term debt and short-term borrowings (180.0 )
(445.4 ) Dividends paid on common stock (102.0 ) (100.9 ) Payments
of debt issuance and extinguishment costs (33.9 ) (29.6 ) Other
financing activities (3.9 ) (9.2 )
Cash flow (used
in) financing activities - continuing operations (319.8
) (585.1 ) Cash flow from
discontinued operations 127.0
270.7 Effect of foreign currency exchange
rates on cash and cash equivalents (13.7 )
11.1 Cash and cash equivalents
beginning of period $ 679.6 $ 703.6
Change in cash and cash equivalents 312.8
(24.0 )
Cash and cash equivalents end of period $
992.4 $ 679.6
Non-U.S. GAAP Free Cash
Flow(4): Cash flow provided by operating
activities - continuing operations $ 624.8 $ 394.2 Capital
expenditures for property and equipment (116.0 )
(122.8 )
Non-U.S. GAAP Free Cash Flow
$ 508.8 $ 271.4
Additional Cash Flow Information: Interest payments, net of
amounts capitalized $ 289.7 $ 323.0 Income tax
payments $ 111.3 $ 108.6 Restructuring payments $
107.0 $ 103.4 SARs payments, less amounts included in
restructuring payments $ 46.0 $ 24.0
(1) The supplementary information included
in this press release for 2013 is preliminary and subject to change
prior to the filing of our upcoming Annual Report on Form 10-K with
the Securities and Exchange Commission.
(2) In December 2013, we completed the sale of our rigid
medical packaging business. In November 2012, we sold our Diversey
Japan business. The financial results of both the rigid medical
business and Diversey Japan businesses are reported as discontinued
operations, net of tax, and, accordingly all previously reported
financial information has been revised. (3) 2013 primarily
consists of depreciation and amortization of $307 million, loss on
debt redemption of $36 million and non-cash profit sharing expense
of $35 million. 2012 primarily consists of impairment of goodwill
and other intangible assets of $1,892 million, depreciation and
amortization expense of $317 million, impairment of equity method
investment of $24 million and non-cash profit sharing expense of
$19 million, partially offset by deferred taxes, net of $319
million. (4) Free cash flow does not represent residual cash
available for discretionary expenditures, including certain debt
servicing requirements or non-discretionary expenditures that are
not deducted from this measure.
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION RECONCILIATION OF U.S. GAAP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS TO NON-U.S.
GAAP ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
NON-U.S. GAAP ADJUSTED EBITDA(1) (Unaudited)
(In millions, except per share data) Three Months
Ended December 31, 2013 2012
U.S. GAAP As Reported
Special Items(2)
Non-U.S. GAAP
Adjusted
U.S. GAAP As Reported
Special Items(2)
Non-U.S. GAAP
Adjusted
Revised(3) Revised(3)
Net sales $ 2,012.5
$ - $ 2,012.5 $ 1,955.9
$ - $ 1,955.9 Cost of sales 1,346.2
(1.7 ) 1,344.5 1,309.9 (8.1 ) 1,301.8
Gross profit 666.3 1.7 668.0
646.0 8.1 654.1 As a % of total net sales 33.1
% 33.2 % 33.0 % 33.4 % Selling, general and administrative expenses
438.6 (5.4 ) 433.2 426.1 (1.8 ) 424.3 As a % of total net sales
21.8 % 21.5 % 21.8 % 21.7 % Amortization expense of intangible
assets acquired 30.8
- 30.8 34.1
- 34.1 Impairment of
goodwill and other intangible assets - - 558.0 (558.0 ) - Stock
appreciation rights expense 11.3
- 11.3 12.8
- 12.8
Costs related to the acquisition and integration of Diversey 0.4
(0.4 ) - 2.6 (2.6 ) - Restructuring and other charges 12.6
(12.6 ) - 32.4 (32.4 ) -
Operating profit
(loss) 172.6 20.1 192.7 (420.0
) 602.9 182.9 As a % of total net sales 8.6 %
9.6 % -21.5 % 9.4 % Interest expense (91.6 ) - (91.6 ) (93.5 ) -
(93.5 ) Impairment of equity method investment - -
-
- - - Foreign currency exchange losses related to Venezuelan
subsidiaries (0.2 ) 0.2 - (0.1 ) 0.1 - Loss on debt redemption (3.9
) 3.9 - (36.9 ) 36.9 - Other expense, net (9.2 ) (0.1 ) (9.3 ) (1.1
) (0.6 ) (1.7 )
Income (loss) from continuing operations before
income tax provision 67.7 24.1 91.8
(551.6 ) 639.3 87.7 Income tax
provision (benefit) 64.1 (45.7 ) 18.4 (206.4 ) 225.6
19.2 Effective income tax rate 94.7 % -189.6 % 20.0 %
37.4 % 35.3 % 21.9 %
Net earnings (loss) from continuing
operations 3.6 69.8 73.4
(345.2 ) 413.7 68.5
Net earnings from discontinued operations
24.0
(24.0 ) - 186.9 (186.9 ) -
Net earnings (loss) available to common stockholders
$ 27.6 $ 45.8 $
73.4 $ (158.3 ) $
226.8 $ 68.5 Earnings
Per Common Share - Diluted: Continuing operations
$ 0.02
$ 0.32
$ 0.34
$ (1.79 )
$
2.11
$ 0.32
Discontinued operations 0.11 (0.11
) - 0.97 (0.97 ) -
Net earnings (loss) per
common share - diluted $ 0.13 $
0.21 $ 0.34 $
(0.82 ) $ 1.14 $
0.32 Weighted average number of common
shares outstanding: Basic 194.9
194.9 193.3 193.3
Diluted weighted average number of common shares
213.9 213.9 193.3
211.7 Non-U.S. GAAP Adjusted EBITDA:
Non-U.S. GAAP Adjusted net earnings from continuing
operations $ 73.4 $ 68.5 Interest
expense 91.6 93.5 Income tax provision 18.4 19.2
Non-U.S. GAAP Adjusted EBIT from continuing operations
183.4 181.2 Depreciation and amortization(4) 73.5
72.1 Write down of non-strategic assets, included in depreciation
and amortization (0.3 ) 4.4 Non-cash profit sharing expense 5.2
4.6
Non-U.S. GAAP Adjusted EBITDA - continuing
operations $ 261.8 $ 262.3
As a % of total net sales
13.0 %
13.4 %
Notes: (1) The supplementary information
included in this press release for 2013 is preliminary and subject
to change prior to the filing of our upcoming Annual Report on Form
10-K with the Securities and Exchange Commission. (2)
Special items consist of certain one-time costs or charges/credits
that are included in our US GAAP reported results. These special
items include restructuring and other associated costs related to
our previously announced Earnings Quality Improvement Program
("EQIP") and the Integration and Optimization Program ("IOP")
restructuring programs, losses recorded on debt redemption and
financing activities and the increase of our valuation allowance
with respect to the Settlement agreement deferred tax asset.
Special items in 2012 also included non-cash impairment charges
recorded for impairment of goodwill and other intangible assets.
Our Non-U.S. GAAP adjusted financial results are reported on a
continuing operations basis. (3) In December 2013, we
completed the sale of our rigid medical packaging business, which
was included in our Other Category. In November 2012, we sold our
Diversey Japan business. The financial results of both the rigid
medical business and Diversey Japan businesses are reported as
discontinued operations, net of tax, and, accordingly all
previously reported financial information has been revised.
(4) Depreciation and amortization includes:
Three Months Ended December 31, 2013 2012
Depreciation of property, plant and equipment $ 38.9 $ 38.3
Amortization of intangible assets acquired 30.8 34.1 Amortization
of deferred share-based compensation 3.8 (0.3 )
Total $ 73.5
$ 72.1
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION RECONCILIATION OF U.S. GAAP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS TO NON-U.S. GAAP
ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
NON-U.S. GAAP ADJUSTED EBITDA(1) (Unaudited)
(In millions, except per share data) Year
Ended December 31, 2013
2012
U.S. GAAP As Reported
Special Items(2)
Non-U.S. GAAP
Adjusted
U.S. GAAP As Reported
Special Items(2)
Non-U.S. GAAP
Adjusted
Revised(3) Revised (3)
Net sales $ 7,690.8
$ - $ 7,690.8 $ 7,559.2
$ - $ 7,559.2 Cost of sales 5,103.3
(7.4 ) 5,095.9 5,036.9 (18.3 ) 5,018.6
Gross profit 2,587.5 7.4 2,594.9
2,522.3 18.3 2,540.6 As a % of total net sales
33.6 % 33.7 % 33.4 % 33.6 % Selling, general and administrative
expenses 1,749.2 (24.6 ) 1,724.6 1,756.7 (22.9 ) 1,733.8 As a % of
total net sales 22.7 % 22.4 % 23.2 % 22.9 % Amortization expense of
intangible assets acquired 123.2
- 123.2 132.7
-
132.7 Impairment of goodwill and other intangible assets -
-
- 1,892.3 (1,892.3 ) - Stock appreciation rights expense 38.1
- 38.1 18.4
- 18.4 Costs related to the acquisition
and integration of Diversey 1.1 (1.1 ) - 7.4 (7.4 ) - Restructuring
and other charges 73.8 (73.8 ) - 142.5 (142.5
) -
Operating profit (loss) 602.1 106.9
709.0 (1,427.7 ) 2,083.4 655.7
As a % of total net sales 7.8 % 9.2 % -18.9 % 8.7 % Interest
expense (361.0 ) - (361.0 ) (384.7 ) - (384.7 ) Impairment of
equity method investment - - - (23.5 ) 23.5 - Foreign currency
exchange losses related to Venezuelan subsidiaries (13.1 ) 13.1 -
(0.4 ) 0.4 - Loss on debt redemption (36.3 ) 36.3 - (36.9 ) 36.9 -
Other expense, net (14.0 ) 2.7 (11.3 ) (9.4 ) (0.3 ) (9.7 )
Income (loss) from continuing operations before income tax
provision 177.7 159.0 336.7
(1,882.6 ) 2,143.9 261.3 Income tax
provision (benefit) 84.0 (10.5 ) 73.5 (264.7 ) 332.9
68.2 Effective income tax rate 47.3 % -6.6 % 21.8 %
14.1 % 15.5 % 26.1 %
Net earnings (loss) from continuing
operations 93.7 169.5 263.2
(1,617.9 ) 1,811.0 193.1
Net earnings from discontinued operations
30.5
(30.5 ) - 207.6 (207.6 ) -
Net earnings
(loss) available to common stockholders $ 124.2
$ 139.0 $ 263.2
$ (1,410.3 ) $ 1,603.4
$ 193.1 Earnings Per Common Share -
Diluted: Continuing operations $ 0.44
$
0.79
$ 1.23
$ (8.39 )
$ 9.31
$ 0.91
Discontinued operations 0.14 (0.14 ) - 1.08
(1.08 ) -
Net earnings (loss) per common share -
diluted $ 0.58 $ 0.65
$ 1.23 $ (7.31 ) $
8.23 $ 0.91 Weighted
average number of common shares outstanding: Basic
194.6 194.6 192.8
192.8 Diluted weighted average number of common
shares 213.5 213.5 192.8
211.2 Non-U.S. GAAP Adjusted
EBITDA: Non-U.S. GAAP adjusted net earnings from continuing
operations $ 263.2 $ 193.1 Interest
expense 361.0 384.7 Income tax provision 73.5 68.2
Non-U.S. GAAP Adjusted EBIT from continuing operations
697.7 646.0 Depreciation and amortization(4) 307.5
317.1 Write down of non-strategic assets, included in depreciation
and amortization (5.3 ) (0.8 ) Non-cash profit sharing expense 34.7
19.0
Non-U.S. GAAP adjusted EBITDA - continuing
operations $ 1,034.6 $ 981.3
As a % of total net sales
13.5 %
13.0 %
Notes: (1) The supplementary
information included in this press release for 2013 is preliminary
and subject to change prior to the filing of our upcoming Annual
Report on Form 10-K with the Securities and Exchange Commission.
(2) Special items consist of certain one-time costs or
charges/credits that are included in our US GAAP reported results.
These special items include restructuring and other associated
costs related to our previously announced Earnings Quality
Improvement Program ("EQIP") and the Integration and Optimization
Program ("IOP") restructuring programs, losses recorded on debt
redemption and financing activities and the increase of our
valuation allowance with respect to the Settlement agreement
deferred tax asset. Special items in 2012 also included non-cash
impairment charges recorded for impairment of goodwill and other
intangible assets. Our Non-U.S. GAAP adjusted financial results are
reported on a continuing operations basis. (3) In December
2013, we completed the sale of our rigid medical packaging
business, which was included in our Other Category. In November
2012, we sold our Diversey Japan business. The financial results of
both the rigid medical business and Diversey Japan businesses are
reported as discontinued operations, net of tax, and, accordingly
all previously reported financial information has been revised.
(4) Depreciation and amortization includes:
Year Ended December 31, 2013
2012 Depreciation of property, plant and equipment $ 160.2 $
167.5 Amortization of intangible assets acquired 123.2 132.7
Amortization of deferred share-based compensation, included in
selling, general and administrative expenses 24.1 16.9
Total
$ 307.5 $ 317.1
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
U.S. GAAP SEGMENT
INFORMATION(1)
(Unaudited) (In millions) Three Months
Ended Year Ended December 31, December 31,
2013 2012 2013 2012 Net sales:
Revised(2) Revised(2) Food Care $ 1,011.6 $ 986.4 $ 3,811.1 $
3,739.6 As a % of net sales 50.3 % 50.4 % 49.6 % 49.5 %
Diversey Care 545.8 533.6 2,160.4 2,131.5 As a % of net sales 27.1
% 27.3 % 28.1 % 28.2 % Product Care 424.4 407.4 1,608.0
1,578.4 As a % of net sales 21.1 % 20.8 % 20.9 % 20.9 %
Other Category: Medical Applications business and New Ventures 30.7
28.5 111.3 109.7 As a % of net sales 1.5 % 1.5 % 1.4 % 1.5 %
Total $ 2,012.5 $
1,955.9 $ 7,690.8 $ 7,559.2
Operating profit (loss): Food Care $ 119.6 $ (95.0) $
431.4 $ (170.9) As a % of Food Care net sales 11.8 % (9.6) % 11.3 %
(4.6) % Diversey Care 11.2 (322.4) 57.9 (1,278.4) As a % of
Diversey Care net sales 2.1 % (60.4) % 2.7 % (60.0) %
Product Care 56.7 56.9 200.4 207.5 As a % of Product Care net sales
13.4 % 14.0 % 12.5 % 13.1 % Other Category: Medical
Applications business and New Ventures (1.9) (24.5) (12.7) (36.0)
As a % of Medical Applications and New Ventures net sales (6.2) %
(86.0) % (11.4) % (32.8) %
Total
segments and other category 185.6 (385.0)
677.0 (1,277.8) As a % of total net sales 9.2 %
(19.7) % 8.8 % (16.9) % Costs related to the acquisition and
integration of Diversey 0.4 2.6 1.1 7.4 Restructuring and
other charges 12.6 32.4 73.8 142.5
Total $ 172.6 $ (420.0) $
602.1 $ (1,427.7) As a % of total net sales
8.6 % (21.5) % 7.8 % (18.9) %
(1) The supplementary
information included in this press release for 2013 is preliminary
and subject to change prior to the filing of our upcoming Annual
Report on Form 10-K with the Securities and Exchange Commission.
(2) In December 2013, we sold our rigid medical packaging
business. The financial results of the rigid medical business are
reported as discontinued operations, net of tax, and, accordingly
all previously reported financial information has been revised.
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION SEGMENT AND CONSOLIDATED
ADJUSTED OPERATING PROFIT AND ADJUSTED EBITDA(1)
(Unaudited)
Three Months Ended December 31, 2013 Three Months
Ended December 31, 2012 Revised(1) Food
Care
Diversey Care
Product Care
Medical Applications and
New Ventures
Total Food Care
Diversey Care
Product Care
Medical Applications and
New Ventures
Total Adjusted Operating Profit
$ 122.9 $ 12.4 $
58.8 $ (1.4 ) $
192.7 $ 118.7 $
10.5 $ 58.9 $ (5.2
) $ 182.9 as a % of net sales 12.1 %
2.3 % 13.9 % -4.6 % 9.6 % 12.0 % 2.0 % 14.5 % -18.2 % 9.4 %
Depreciation and amortization 30.5 32.4 9.2 1.4 73.5 29.4 31.5 8.7
2.5
72.1 Special items (2.1 ) 0.1
(0.1 ) (0.3 ) (2.4 ) 5.0
(0.1 ) 0.3 -
5.2
Adjusted EBITDA(includes other income/expense) $
151.3 $ 44.9 $
67.9 $ (0.3 ) $
263.8 $ 153.1 $
41.9 $ 67.9 $ (2.7
) $ 260.2 as a % of net sales 15.0 %
8.2 % 16.0 % -1.0 % 13.1 % 15.5 % 7.9 % 16.7 % -9.5 % 13.3 %
SARs expense $ (0.3 ) $
11.6 $ - $ -
$ 11.3 $ 3.1
$ 9.7 $ - $
- $ 12.8
Reconciliation of Segment
Adjusted EBITDA to Consolidated Adjusted EBITDA: Total
Segment Adjusted EBITDA $ 263.8 $
260.2 Non-cash profit sharing expense 5.2 4.6 Other
income/expense, net of special items (7.2 ) (2.5 )
Consolidated Adjusted EBITDA $ 261.8
$ 262.3 as a % of net sales
13.0 %
13.4 %
Year Ended December
31, 2013 Year Ended December 31, 2012
Revised(1) Food Care
Diversey Care
Product Care
Medical Applications and
New Ventures
Total Food Care
Diversey Care
Product Care
Medical Applications and
New Ventures
Total Adjusted Operating Profit $
445.5 $ 62.1 $
207.5 $ (6.1 ) $
709.0 $ 391.6 $
68.6 $ 211.1 $
(15.6 ) $ 655.7 as a % of net
sales 11.7 % 2.9 % 12.9 % -5.5 % 9.2 % 10.5 % 3.2 % 13.4 % -14.2 %
8.7 % Depreciation and amortization 127.2 129.8 39.1 11.4 307.5
142.2 127.3 38.3 9.3
317.1 Special items (1.1 )
0.1 0.3 (4.5 ) (5.2 )
(3.1 ) (0.2 ) 0.7 0.6
(2.0 ) Adjusted EBITDA(includes other
income/expense) $ 571.6 $
192.0 $ 246.9 $
0.8 $ 1,011.3 $
530.7 $ 195.7 $
250.1 $ (5.7 ) $
970.8 as a % of net sales 15.0 % 8.9 % 15.4 % 0.7 %
13.1 % 14.2 % 9.2 % 15.8 % -5.2 % 12.8 %
SARs expense
$ 7.0 $ 31.1 $
- $ - $ 38.1
$ 4.4 $ 14.0
$ - $ - $
18.4
Reconciliation of Segment Adjusted EBITDA to Consolidated
Adjusted EBITDA: Total Segment Adjusted EBITDA $
1,011.3 $ 970.8 Non-cash profit sharing
expense 34.7 19.0 Other income/expense, net of special items
(11.4 ) (8.5 )
Consolidated Adjusted EBITDA $
1,034.6 $ 981.3 as a % of net
sales
13.5 %
13.0 %
Note: (1) The supplementary information included in
this press release for 2013 is preliminary and subject to change
prior to the filing of our upcoming Annual Report on Form 10-K with
the Securities and Exchange Commission. Some information in 2012
has been reclassified to conform to 2013 presentation. These
reclassifications were not material to our segment or consolidated
financial results. In December 2013, we completed the sale of our
rigid medical packaging business, which was included in our Other
Category. In November 2012, we sold our Diversey Japan business.
The financial results of both the rigid medical business and
Diversey Japan businesses are reported as discontinued operations,
net of tax, and, accordingly all previously reported financial
information has been revised.
Excluding the impact of SARs, our Adjusted Operating Profit,
Adjusted EBITDA and Adjusted EPS results were the following. SARs
does not impact our Product Care segment or Other Category.
Three Months
Ended December 31, Year Ended December 31, 2013
2012 Inc / (Dec) 2013
2012 Inc / (Dec) Adjusted Operating Profit:
Food Care $ 122.6 $ 121.8 0.7 % $ 452.5 $
396.0 14.3 % as a % of net sales 12.1 % 12.3 % (20) bps 11.9 % 10.6
% 130 bps Diversey Care $ 24.0 $ 20.2 18.8 % $ 93.2 $ 82.6 12.8 %
as a % of net sales 4.4 % 3.8 % 60 bps 4.3 % 3.9 % 40 bps
Consolidated $ 204.0 $ 195.7 4.2 % $ 747.1 $ 674.1 10.8 % as a % of
net sales 10.1 % 10.0 % 10 bps 9.7 % 8.9 % 80 bps
Adjusted EBITDA: Food Care $ 151.0 $ 156.2 (3.3) % $ 578.6 $
535.1 8.1 % as a % of net sales 14.9 % 15.8 % (90) bps 15.2 % 14.3
% 90 bps Diversey Care $ 56.5 $ 51.6 9.5 % $ 223.1 $ 209.7 6.4 % as
a % of net sales 10.4 % 9.7 % 70 bps 10.3 % 9.8 % 50 bps
Consolidated $ 273.1 $ 275.1 (0.7) % $ 1,072.7 $ 999.7 7.3 % as a %
of net sales 13.6 % 14.1 % (50) bps 13.9 % 13.2 % 70 bps
Adjusted EPS: Adjusted EPS $ 0.34 $ 0.32 6.1 % $ 1.23 $ 0.91
34.8 % Impact of SARs, net of taxes 0.05 0.05
0.16 0.07
Adjusted EPS
excluding the impact of SARs $ 0.39
$ 0.37 5.2 %
$ 1.39
$ 0.98 41.5 %
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION COMPONENTS OF CHANGE IN NET
SALES - SEGMENTS AND OTHER(1) (Unaudited) (In
millions) Three Months Ended December 31, 2013
Change in Net Sales due to: Food Care Diversey
Care Product Care
Medical Applications &
New Ventures
Total Company
Volume - Units $ 10.0 1.0 % $ 5.8 1.1 % $ 12.5 3.1 % $ (1.7 ) (6.0
) % $ 26.6 1.4 % Volume - Acquired businesses, net of
(dispositions) - - - - - - (0.5 ) (1.8 ) (0.5 ) - Product price/mix
(2) 31.9 3.2 9.8 1.8 6.8 1.7 3.8 13.3 52.3 2.7 Foreign currency
translation (16.8 ) (1.7 ) (3.4 ) (0.6 ) (2.2
) (0.5 ) 0.6 2.1 (21.8 ) (1.1 )
Total change (U.S. GAAP) $ 25.1
2.5 % $ 12.2 2.3
% $ 17.1 4.3
% $ 2.2 7.6 %
$ 56.6 3.0 %
Impact of foreign currency translation 16.8 1.7
3.4 0.6 2.2 0.5
(0.6 ) (2.1 ) 21.8 1.1
Total
constant dollar change (Non-U.S. GAAP)(3)
$ 41.9
4.2 % $ 15.6
2.9 % $ 19.3 4.8
% $ 1.6 5.5
% $ 78.4 4.1 %
Year Ended December 31, 2013 Change in Net
Sales due to: Food Care Diversey Care Product
Care
Medical Applications &
New Ventures
Total Company
Volume - Units $ 63.4 1.7 % $ 11.3 0.5 % $ 40.6 2.6 % $ (1.3 ) (1.2
) % $ 114.0 1.5 % Volume - Acquired businesses, net of
(dispositions) - - - - - - (0.5 ) (0.5 ) (0.5 ) - Product price/mix
(2) 60.9 1.6 32.8 1.5 (2.5 ) (0.2 ) 2.5 2.3 93.7 1.2 Foreign
currency translation (52.8 ) (1.4 ) (15.2 ) (0.7 )
(8.5 ) (0.5 ) 0.9 0.8 (75.6 )
(1.0 )
Total change (U.S. GAAP) $ 71.5
1.9 % $ 28.9 1.3
% $ 29.6 1.9
% $ 1.6 1.4 %
$ 131.6 1.7 %
Impact of foreign currency translation 52.8 1.4
15.2 0.7 8.5 0.5
(0.9 ) (0.8 ) 75.6 1.0
Total
constant dollar change (Non-U.S. GAAP)(3)
$ 124.3
3.3 % $ 44.1
2.0 % $ 38.1 2.4
% $ 0.7 0.6
% $ 207.2 2.7 %
(1) The results above are presented on a continuing operations
basis, excluding our medical rigids business, which we sold in
December 2013. (2) Our product price/mix reported above
includes the net impact of our pricing actions and rebates as well
as the period-to-period change in the mix of products sold. Also
included in our reported product price/mix is the net effect of
some of our customers purchasing our products in non-U.S. dollar or
non-euro denominated countries at selling prices denominated in
U.S. dollars or euros. This primarily arises when we export
products from the U.S. and euro-zone countries. The impact to our
reported product price/mix of these purchases in other countries at
selling prices denominated in U.S. dollars or euros was not
material in the periods included in the tables above. (3)
Changes in these items excluding the impact of foreign currency
translation are non-U.S. GAAP financial measures. Since we are a
U.S. domiciled company, we translate our
foreign-currency-denominated financial results into U.S. dollars.
Due to changes in the value of foreign currencies relative to the
U.S. dollar, translating our financial results from foreign
currencies to U.S. dollars may result in a favorable or unfavorable
impact. It is important that we take into account the effects of
foreign currency translation when we view our results and plan our
strategies. Nonetheless, we cannot control changes in foreign
currency exchange rates. Consequently, when our management looks at
our financial results to measure the core performance of our
business, we exclude the impact of foreign currency translation by
translating our current period results at prior period foreign
currency exchange rates. We also may exclude the impact of foreign
currency translation when making incentive compensation
determinations. As a result, our management believes that these
presentations are useful internally and may be useful to our
investors.
SEALED AIR CORPORATION SUPPLEMENTARY INFORMATION
COMPONENTS OF CHANGE IN NET SALES - GEOGRAPHIC(1)
Unaudited (In millions) Three Months Ended
December 31, 2013
North America
Europe
Latin America
AMAT(2) JANZ(3) Total Change
in Net Sales due to: Volume - Units $ (0.3 ) $ 14.9 $ (0.8 ) $
10.1 $ 2.7 $ 26.6 % change (0.1 ) % 2.4 % (0.4 ) % 5.0 % 1.6 % 1.4
% Volume - Acquired businesses, net of (dispositions) (1.2 ) 0.3
0.1 0.3 - (0.5 ) % change (0.2 ) % - % 0.1 % % 0.2 % - % - %
Product price/mix 27.6 1.3 15.6 6.0 1.8 52.3 % change 3.7 % 0.2 %
7.1 % 3.0 % 1.1 % 2.7 % Foreign currency translation (3.7 ) 21.7
(17.5 ) (7.7 ) (14.6 ) (21.8 ) % change (0.5 ) % 3.5
% (8.0 ) % (3.8 ) % (8.7 ) %
(1.1 ) %
Total $ 22.4 $
38.2 $ (2.6 ) $
8.7 $ (10.1 ) $
56.6 % change 3.1 % 6.1 % (1.3 ) % 4.2 % (6.0 ) % 3.0
% Impact of foreign currency translation 3.7
(21.7 ) 17.5 7.7 14.6
21.8
Total constant dollar change (Non-U.S.
GAAP) $ 26.1 $ 16.5
$ 14.9 $ 16.4 $
4.5 $ 78.4 Constant dollar %
change 3.6 % 2.6 % 6.7 % 8.0 % 2.7 % 4.1 %
Year Ended
December 31, 2013
North America
Europe
Latin America
AMAT(2) JANZ(3) Total Change
in Net Sales due to: Volume - Units $ 18.7 $ (2.2 ) $ 36.5 $
54.3 $ 6.7 $ 114.0 % change 0.6 % (0.1 ) % 4.6 % 6.8 % 1.1 % 1.5 %
Volume - Acquired businesses, net of (dispositions) (1.2 ) 0.3 0.1
0.3 - (0.5 ) % change - % - % - % - % - % - % Product price/mix
44.5 (3.8 ) 40.5 16.3 (3.8 ) 93.7 % change 1.5 % (0.2 ) % 5.1 % 2.0
% (0.6 ) % 1.2 % Foreign currency translation (7.5 ) 37.1 (52.5 )
(18.6 ) (34.1 ) (75.6 ) % change (0.3 ) % 1.5
% (6.6 ) % (2.3 ) % (5.7 ) % (1.0 ) %
Total $ 54.5 $ 31.4
$ 24.6 $ 52.3
$ (31.2 ) $ 131.6 %
change 1.8 % 1.2 % 3.1 % 6.5 % (5.2 ) % 1.7 % Impact of
foreign currency translation 7.5 (37.1 )
52.5 18.6 34.1
75.6
Total constant dollar change (Non-U.S. GAAP)
$ 62.0 $ (5.7 ) $
77.1 $ 70.9 $ 2.9
$ 207.2 Constant dollar % change 2.1 %
(0.3 ) % 9.7 % 8.8 % 0.5 % 2.7 %
(1)
The results above are presented on a
continuing operations basis, excluding our medical rigids business,
which we sold in December 2013.
(2)
AMAT = Asia, Middle East, Africa and
Turkey.
(3)
JANZ = Japan, Australia and New
Zealand.
Sealed Air CorporationInvestor:Lori Chaitman,
201-703-4161orMedia:Ken Aurichio, 201-703-4164
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