- 2015 Adjusted EBITDA of $1.17 Billion
or 16.7% of Net Sales; Free Cash Flow of $595 Million
- 2015 Adjusted EPS of $2.59, compared to
Adjusted EPS of $1.86 in 2014; 2015 Reported EPS of $1.62, compared
to 2014 Reported EPS of $1.20
- Company Provides Full Year 2016 Outlook
for 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 2015. Commenting on these
results, Jerome A. Peribere, President and Chief Executive Officer,
said. “In 2015, net sales increased 3% on an organic basis to $7.0
billion. Adjusted EBITDA margins expanded 230 basis points and Free
Cash Flow was $595 million. This is the third consecutive year
where we executed on our commitments and delivered year-over-year
operational improvements irrespective of the economic environment.
In 2016, we estimate organic net sales growth of 3.5%, and adjusted
EBITDA to be in the range of $1.17 billion to $1.19 billion, an
organic increase of 7% to 9%. Additionally, we expect to generate
approximately $550 million in Free Cash Flow in 2016 including a
planned increase in capital expenditures to $275 million from $184
million in 2015. Our performance in 2016 will be driven by ongoing
productivity improvements, further adoption of our more advanced
product portfolio, and early successes with our Change the Game
initiatives. All of this will accelerate future growth and drive
margin expansion,” continued Mr. Peribere.
Unless otherwise stated, all results compare fourth quarter 2015
results to fourth quarter 2014 results. Year-over-year financial
discussions present operating results as reported, and on an
organic or constant dollar basis. Constant dollar refers to unit
volume and price/mix performance and excludes the impact of
currency translation from all periods referenced. Organic refers to
unit volume and price/mix performance and excludes the impact of
currency translation and the results from the divestiture of the
North American foam trays and absorbent pads business, which was
divested on April 1, 2015 and the divestiture of the European food
trays business in November 2015 (together “divestitures”), from all
periods referenced. Additionally, non-U.S. GAAP adjusted financial
measures, such as Adjusted Earnings Before Interest Expense, Taxes,
Depreciation and Amortization (“Adjusted EBITDA”), Adjusted Net
Earnings, Adjusted Diluted Earnings Per Share (“Adjusted EPS”) and
Adjusted Tax Rate, exclude the impact of special items, such as
restructuring charges, Venezuela remeasurement, cash-settled stock
appreciation rights (“SARs”) granted as part of the Diversey
acquisition and certain other infrequent or one-time items. Please
refer to the financial statements included with this press release
for a reconciliation of Non-U.S. GAAP to U.S. GAAP financial
measures.
Full Year 2015
Highlights
- Food Care delivered positive price/mix
of 2.6% with favorable trends across all regions. This was
complemented by volume growth of 1.3% primarily attributable to
increases in North America, Europe, Middle East and Africa (EMEA)
and Asia Pacific. Positive price/mix and volume growth were a
result of new product adoption, increased market penetration of
advanced packaging solutions and pricing disciplines. Food Care
Adjusted EBITDA margins expanded 280 basis points to 20.3% for the
full year 2015. This performance was attributable to favorable mix
and price/cost spread, higher volumes, as well as cost synergies,
partially offset by unfavorable currency translation, higher
non-material inflationary costs and divestitures. In 2015, Food
Care completed divestitures of non-core assets, which resulted in a
decrease of $172 million to net sales and $33 million to Adjusted
EBITDA.
- In Diversey Care, favorable price/mix
was 1.9% and volume increased 1.2%. Favorable price/mix was
positive across all regions and volume increased in North America,
EMEA and Asia Pacific. This performance was attributable to growth
within its core customer base and new customer wins primarily in
healthcare, building service contractors and food and retail
services sectors. Adjusted EBITDA margins expanded 30 basis points
to 11.6% for the full year 2015. Margin performance was due to
favorable mix and price/cost spread and cost synergies, partially
offset by unfavorable currency translation and higher expenses
related to targeted investments in sales and marketing, research
and development, and the acquisition of Intellibot.
- In Product Care, strong growth in the
e-Commerce and third party logistics markets were offset by
rationalization efforts in North America, Latin America and to a
smaller extent in EMEA, and weakness in the industrial sectors.
This led to a 2.3% decline in volume, partially offset by favorable
price/mix of 1.4% for the full year 2015. Price/mix was favorable
across all regions. Product Care substantially completed its
rationalization efforts in Latin America and its efforts in North
America and EMEA are expected to continue through the first half of
2016. While sales declined slightly, Product Care expanded Adjusted
EBITDA margins 310 basis points to 20.8% for the full year 2015.
This performance was primarily attributable to favorable mix and
price/cost spread and cost synergies, partially offset by lower
volumes and unfavorable currency translation.
Fourth Quarter and Full Year 2015
Summary
Fourth quarter 2015 net sales of $1.75 billion decreased 11.1%
on an as reported basis and 1.5% on a constant dollar basis. For
the full year 2015, net sales totaled $7.0 billion, a decrease of
9.3% as reported and 0.6% in constant dollars. Currency had a
negative impact on net sales of $190 million in the fourth quarter
and $764 million in 2015. Food Care related divestitures also had a
negative impact on net sales in the quarter and in 2015. Adjusting
for currency translation and divestitures, organic net sales growth
was 1.7% in the fourth quarter and 2.8% in the full year as a
result of favorable price/mix trends on essentially flat
volumes.
On a regional basis, Latin America increased 7.0% on a constant
dollar basis in the fourth quarter, and 6.3% for the year. Asia
Pacific was essentially flat in the quarter and up 2.4% in constant
dollars for the year. On an organic basis, North America declined
0.1% in the fourth quarter and increased 1.6% in 2015, while EMEA
was up 2.8% and 3.2% for the fourth quarter and full year,
respectively. Food Care and Diversey Care increased sales in North
America in the quarter and for the full year.
Adjusted EBITDA for the fourth quarter 2015 was $282 million, or
16.1% of net sales, compared to $282 million, or 14.3% of net
sales, in fourth quarter 2014. Adjusted EBITDA results were
negatively impacted by currency of $30 million, and divestitures of
$11 million. Adjusted EBITDA margins expanded 180 basis points
compared to the fourth quarter of 2014. The year-over-year margin
increase was primarily attributable to favorable mix and price/cost
spread, cost synergies, partially offset by unfavorable currency
translation and the impact of divestitures. Excluding currency
translation and the impact of divestitures, Adjusted EBITDA
delivered organic growth of 14.9% in the fourth quarter.
Full year 2015 Adjusted EBITDA was $1.17 billion, or 16.7% of
net sales, compared to $1.12 billion, or 14.4% of net sales, in
2015. Adjusted EBITDA results were negatively impacted by currency
of $126 million, and divestitures of $33 million. Adjusted EBITDA
margins expanded 230 basis points compared to last year. The 2015
margin increase as compared to 2014 was attributable to favorable
mix and price/cost spread and cost synergies, partially offset by
higher SG&A costs, unfavorable currency translation and the
impact of the divestitures. Excluding currency translation and the
impact of divestitures, Adjusted EBITDA delivered organic growth of
19.2% for the full year.
Fourth quarter 2015 net earnings on a reported basis were $124
million, or $0.62 per diluted share as compared to $66 million, or
$0.31 per diluted share in the fourth quarter 2014. Net earnings in
the fourth quarter of 2015 included $27 million of special items,
primarily consisting of restructuring and other associated costs,
as well as a loss on the divestiture of our European food trays
business. Net earnings in the fourth quarter of 2014 included $60
million of special items, primarily consisting of restructuring and
other associated costs, and loss on debt redemption and refinancing
activities. Adjusted EPS was $0.76 for the fourth quarter 2015.
This compares to Adjusted EPS of $0.59 in the fourth quarter 2014.
The Adjusted Tax Rate was 7.6% in the fourth quarter 2015, compared
to 9.2% in the fourth quarter 2014. The reduction in the Adjusted
Tax Rate was primarily attributable to the recording of net foreign
tax credits that were previously deemed not recognizable and a more
tax efficient means to repatriate offshore earnings.
Full year 2015 net earnings on a reported basis were $335
million or $1.62 per diluted share as compared to $258 million, or
$1.20 per diluted share in the full year 2014. Net earnings in 2015
included $201 million of special items, primarily consisting of
restructuring and other associated costs, loss on debt redemption
and refinancing activities, as well as a tax reserve recorded in
relation to the tax refund received on the Settlement agreement (as
defined in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2014), partially offset by the release of
certain tax reserves recorded at the time of the Diversey Holdings,
Inc. acquisition, for which the statute of limitations had expired.
Net earnings in 2014 included $141 million of special items,
primarily consisting of restructuring and other associated costs,
and loss on debt redemption and refinancing activities. Adjusted
EPS was $2.59 for 2015. This compares to Adjusted EPS of $1.86 in
2014. The Adjusted Tax Rate was 20.2% in the full year 2015,
compared to 22.1% in the full year 2014. The reduction in the
Adjusted Tax Rate had a favorable impact on adjusted EPS of $0.06
and was primarily attributable to the recording of net foreign tax
credits that were previously deemed not recognizable and a more tax
efficient means to repatriate offshore earnings.
In 2015, the Company repurchased approximately 16.1 million
shares of its common stock for approximately $802 million. The
average diluted shares outstanding as of December 31, 2015 was 207
million as compared to 214 million as of December 31, 2014.
Cash Flow and Net Debt
Cash flow provided by operating activities in 2015 was $968
million. In March 2015, the Company received a tax refund of $235
million related to the payment of funds in connection with the
Settlement agreement. Excluding the tax refund, cash flow provided
by operating activities in 2015 was $733 million, which is net of
$98 million of restructuring and $21 million of SARs payments. This
compares with cash used by operating activities of $215 million in
2014, which is net of $108 million of restructuring, $21 million of
SARs payments and $930 million related to the Settlement agreement.
Capital expenditures were $184 million in the full year 2015
compared to $154 million in 2014.
Free Cash Flow, defined as net cash provided by (used in)
operating activities (excluding the Settlement agreement and excess
tax benefit) less capital expenditures, was an inflow of $595
million in 2015, compared with $599 million in 2014. The decrease
was attributable to unfavorable currency impact, changes in other
assets and liabilities and higher capital expenditures, partially
offset by lower interest payments and higher earnings.
Compared to December 31, 2014, the Company’s net debt increased
$73 million to $4.2 billion as of December 31, 2015. This increase
was primarily a result of amounts paid for share repurchases and
dividends, partially offset by cash reflecting the tax refund
related to the Settlement agreement payment and cash generated from
operating activities.
Outlook for Full Year
2016
The Company estimates net sales to be approximately $6.8 billion
for the full year 2016, which assumes an unfavorable impact of
approximately $400 million or 6% from foreign currency translation.
Adjusted for unfavorable currency and a $102 million decline
related to 2015 divestitures, net sales in 2016 are expected to
increase approximately 3.5% on an organic basis.
Adjusted EBITDA is estimated to be in the range of $1.17 billion
to $1.19 billion, which assumes $65 million of unfavorable currency
translation. On an organic basis, which excludes unfavorable
currency and a reduction of $21 million related to 2015
divestitures, Adjusted EBITDA is expected to increase in the range
of 7% to 9%.
Adjusted EPS is expected to be in the range of $2.52 to $2.60.
The outlook assumes an Adjusted Tax Rate of 24%. Adjusted EPS
guidance excludes the impact of special items.
The Company anticipates 2016 Free Cash Flow to be approximately
$550 million, including capital expenditures of approximately $275
million and cash restructuring payments of approximately $110
million.
Conference Call
Information
Date:
Wednesday, February 10, 2016
Time:
10:00am (ET)
Webcast:
www.sealedair.com in the Investor Relations section
Conference Dial
In:
(888) 713-4213 (domestic) (617) 213-4865 (international)
Participant
Code:
46272827
Conference Call
Replay Information
Dates:
Wednesday, February 10, 2016 starting at 2:00pm (ET) through
Friday, March 11, 2016 at 11:59pm (ET)
Webcast:
www.sealedair.com in the Investor Relations section
Conference Dial
In:
(888) 286-8010 (domestic) (617) 801-6888 (international)
Participant
Code:
24300098
Business
Sealed Air Corporation creates a world that feels, tastes and
works better. In 2015, the Company generated revenue of
approximately $7.0 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, enables 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
23,000 employees who serve customers in 169 countries. To learn
more, visit www.sealedair.com.
Website Information
We routinely post important information for investors on our
website, www.sealedair.com, in the "Investor Relations" section. We
use this website as a means of disclosing material, non-public
information and for complying with our disclosure obligations under
Regulation FD. Accordingly, investors should monitor the Investor
Relations section of our website, in addition to following our
press releases, SEC filings, public conference calls, presentations
and webcasts. The information contained on, or that may be accessed
through, our website is not incorporated by reference into, and is
not a part of, this document.
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” or “organic” basis,
Adjusted Gross Profit, Adjusted Operating Profit, Free Cash Flow,
Adjusted EBITDA and Adjusted Tax Rate, as our management believes
these measures are useful to investors. 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. In addition, non-U.S. GAAP
measures are used by management to review and analyze our operating
performance and, along with other data, as internal measures for
setting annual budgets and forecasts, assessing financial
performance, providing guidance and comparing our financial
performance with our peers and may also be used for purposes of
determining incentive compensation. The non-U.S. GAAP information
has limitations as an analytical tool and should not be considered
in isolation from or as a substitute for U.S. GAAP information. It
does not purport to represent any similarly titled U.S. GAAP
information and is not an indicator of our performance under U.S.
GAAP. Non-U.S. GAAP financial measures that we present may not be
comparable with similarly titled measures used by others. Investors
are cautioned against placing undue reliance on these non-U.S. GAAP
measures. For a reconciliation of these non-U.S. GAAP measures to
U.S. GAAP and other important information on our use of non-U.S.
GAAP financial measures, see the attached supplementary information
entitled “Condensed Consolidated Statements of Cash Flows” (under
the section 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 Information,” “Reconciliation of Non-U.S. GAAP Total
Company Adjusted EBITDA to U.S. GAAP Net Earnings from Continuing
Operations,” “Components of Change in Net Sales by Segment,” and
“Components of Changes in Net Sales by Region.” Information
reconciling forward-looking non-U.S. GAAP measures to U.S. GAAP
measures is not available without unreasonable effort.
Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 concerning our business, consolidated
financial condition and results of operations. Forward-looking
statements are subject to risks and uncertainties, many of which
are outside our control, which could cause actual results to differ
materially from these statements. Therefore, you should not rely on
any of these forward-looking statements. Forward-looking statements
can be identified by such words as “anticipates,” “believes,”
“plan,” “assumes,” “could,” “should,” “estimates,” “expects,”
“intends,” “potential,” “seek,” “predict,” “may,” “will” and
similar references to future periods. All statements other than
statements of historical facts included in this press release
regarding our strategies, prospects, financial condition,
operations, costs, plans and objectives are forward-looking
statements. Examples of forward-looking statements include, among
others, statements we make regarding expected future operating
results, expectations regarding the results of restructuring and
other programs, anticipated levels of capital expenditures and
expectations of the effect on our financial condition of claims,
litigation, environmental costs, contingent liabilities and
governmental and regulatory investigations and proceedings. The
following are important factors that we believe could cause actual
results to differ materially from those in our forward-looking
statements: the tax benefits associated with the Settlement
agreement (as defined in our 2014 Annual Report on Form 10-K),
global economic and political conditions, changes in our credit
ratings, changes in raw material pricing and availability, changes
in energy costs, competitive conditions, success of our
restructuring activities, currency translation and devaluation
effects, the success of our financial growth, profitability, cash
generation and manufacturing strategies and our cost reduction and
productivity efforts, the effects of animal and food-related health
issues, pandemics, consumer preferences, environmental matters,
regulatory actions and legal matters, and the other information
referenced in the “Risk Factors” section appearing 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. Any
forward-looking statement made by us is based only on information
currently available to us and speaks only as of the date on which
it is made. We undertake no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
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, 2015 2014
2015 2014 Net sales $
1,753.9 $ 1,973.7 $ 7,031.5
$ 7,750.5 Cost of sales 1,117.3
1,301.4 4,444.9 5,062.9
Gross
profit 636.6 672.3 2,586.6 2,687.6
As a % of total net sales 36.3 % 34.1 % 36.8 % 34.7 % Selling,
general and administrative expenses 408.6 463.5 1,652.3 1,841.3 As
a % of total net sales 23.3 % 23.5 % 23.5 % 23.8 % Amortization
expense of intangible assets acquired 21.3 26.1 88.7 118.9 Stock
appreciation rights (benefit) expense(2) (0.2 ) 4.9 3.9 8.1
Restructuring and other charges 10.3 34.1
78.3 65.7
Operating
profit 196.6 143.7 763.4 653.6
Interest expense (55.4 ) (65.6 ) (227.7 ) (287.7 ) Impairments of
equity method investment — — — (5.7 ) Foreign currency exchange
(loss) gain related to Venezuelan subsidiaries(3) (2.4 ) (1.5 )
(33.1 ) (20.4 ) Gain from Claims Settlement(4) — — — 21.1 Gain
(Loss) on debt redemption and refinancing activities(5) 0.7 (84.0 )
(110.0 ) (102.5 ) Gain (Loss) on sale of business(6) (15.3 ) — 13.4
— Other income (expense), net 1.5 3.0
19.9 8.8
Earnings before income tax
provision 125.7 (4.4 ) 425.9
267.2 Income tax provision 2.2 (70.7 )
90.5 9.1 Effective income tax rate 1.8
% # % 21.2 % 3.4 %
Net income $ 123.5
$ 66.3 $ 335.4 $
258.1 Net earnings per common
share(7): Basic : $ 0.63
$ 0.31 $ 1.63
$ 1.22 Diluted: 0.62
0.31 1.62
1.20 Dividends per common share $
0.13 $ 0.13 $ 0.52
$ 0.52 Weighted average number of
common shares outstanding: Basic 195.5
209.5 203.9
210.0 Diluted 198.4
212.1 206.7
213.9
____________
#
Not meaningful.
(1)
The supplementary information included in this press release for
2015 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) The remaining amount of unvested
cash-settled stock appreciation rights (“SARs”) fully vested on
March 31, 2015. 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. (3) Based on changes to the Venezuelan currency
exchange rate mechanisms, in the first quarter of 2014, we changed
the exchange rate we used to remeasure our Venezuelan subsidiaries’
financial statements into U.S. dollars. As a result, as of December
30, 2014 our excess cash position in our Venezuelan subsidiaries
was remeasured at the SICAD 2 rate resulting in a $2 million and
$20 million loss for the three and twelve months ended December 30,
2014. As of December 31, 2015, based on further changes in the
Venezuelan exchange rate mechanisms and our specific facts and
circumstances, we changed the rate used to remeasure all of our
Bolivar denominated net monetary assets to the SIMADI rate of
198.6986. As a result of the change, we recorded a remeasurement
loss of $2 million and $33 million in the three months and year
ended December 31, 2015, respectively. (4) As previously disclosed
in our Quarterly Report on Form 10-Q for the three months ended
March 31, 2014, on February 3, 2014 we funded the cash
consideration ($930 million) and issued the shares reserved under
the Settlement agreement as defined therein. As a result, we
recognized a gain on Claims Settlement of $21 million, which
primarily consisted of the release of certain tax and other
liabilities. (5) In June 2015, we issued $400 million of 5.5%
senior notes due 2025 and €400 million of 4.5% senior notes due
2023 and used the net proceeds of these notes to retire the
existing $750 million of 8.375% senior notes due 2021. The
aggregate repurchase price was $866 million, which primarily
included the principle amount of $750 million, premium of $99
million and accrued interest of $17 million. We recognized a total
net pre-tax loss of $111 million in the three months ended June 30,
2015, which included the premiums mentioned above. Also included in
the loss on debt redemption was $11 million of accelerated
amortization of original non-lender fees related to the 8.375%
senior notes. (6) In April 2015, we completed the sale of our North
American foam trays and absorbent pads business for a pre-tax gain
of $27 million and in the fourth quarter, we completed the sale of
our European food trays business for a pre-tax loss of $13 million.
(7) Net earnings per common share is calculated under the two-class
method. See our Quarterly Report on Form 10-Q for period ended
September 30, 2015 for further details.
SEALED AIR
CORPORATION SUPPLEMENTARY INFORMATION CONDENSED
CONSOLIDATED BALANCE SHEETS(1) (Unaudited) (In
millions) December 31,
December 31, 2015 2014
Revised(2)
Assets Current assets: Cash and cash equivalents
$ 358.4 $ 322.6 Marketable securities 1.0 — Trade receivables, net
758.4 1,002.0 Other receivables 147.5 403.8 Inventories 660.8 688.5
Assets held for sale(2) 10.3 106.4 Other current assets
279.2 121.8
Total current assets
2,215.6 2,645.1 Property and equipment, net 930.7
943.0 Goodwill 2,909.5 2,996.9 Intangible assets, net 784.3 872.2
Other assets, net 585.9 496.0
Total
assets $ 7,426.0 $ 7,953.2
Liabilities and stockholders' equity Current
liabilities: Short-term borrowings $ 241.9 $ 143.3 Current portion
of long-term debt 46.6 1.0 Accounts payable 675.3 624.2 Liabilities
held for sale (2) — 13.0 Other current liabilities 843.3
945.7
Total current liabilities
1,807.1 1,727.2 Long-term debt, less current portion
4,302.7 4,282.0 Other liabilities 789.1 781.2
Total liabilities 6,898.9
6,790.4 Stockholders' equity 527.1
1,162.8
Total liabilities and stockholders'
equity $ 7,426.0 $ 7,953.2
CALCULATION OF NET DEBT (1)
December 31, December 31, 2015 2014
Short-term borrowings $ 241.9 $ 143.3 Current portion
of long-term debt 46.6 1.0 Long-term debt, less current portion
4,302.7 4,282.0 Total debt 4,591.2
4,426.3 Less: cash and cash equivalents (358.4 )
(322.6 )
Net debt $ 4,232.8 $
4,103.7
____________
(1) The supplementary information included in this press
release for 2015 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 January 2015, we
completed the sale relating to our building located in Racine,
Wisconsin. As of December 31, 2014, the building and certain
related assets were included in assets held for sale. Accordingly,
we transferred $26 million from assets held for sale as of December
31, 2014. In addition, during the second quarter we completed the
sale of our North American foam trays and absorbent pads business.
During the first quarter of 2015, the assets and liabilities met
the criteria of held for sale classification. Accordingly, we had
reclassified $42 million of assets and $6 million of liabilities to
held for sale as of December 31, 2014. In the fourth quarter of
2015, we completed the sale of our European food trays business.
During the fourth quarter of 2015, the assets and liabilities met
the criteria of held for sale classification. Accordingly, we had
reclassified $37 million of assets and $7 million of liabilities to
held for sale as of December 31, 2014. Additionally, we
reclassified $13 million from accounts payable to short-term
borrowings related to extended payment terms on a vendor agreement
and $36 million from cash to other assets related to cash used as
collateral for borrowing agreements.
SEALED AIR
CORPORATION SUPPLEMENTARY INFORMATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(1)
(Unaudited) (In millions)
Year Ended December 31, 2015 2014 Revised(2)
Net income $ 335.4 $ 258.1 Adjustments to reconcile net earnings to
net cash provided by (used in) operating
activities(3)(5)
413.7 647.6 Changes in: Trade receivables, net 36.7 (27.8 )
Inventories (38.3 ) (48.7 ) Accounts payable 81.3 146.5 Settlement
agreement, and related items (4) 235.2 (929.7 ) Excess tax benefit
from Common Stock issued in the Settlement agreement (46.3 ) (37.7
) Excess tax benefit from stock based compensation (13.1 ) —
Changes in all other operating assets and liabilities (36.9
) (223.0 )
Cash flow provided by (used in) operating
activities 967.7 (214.7 ) Capital
expenditures for property and equipment (184.0 ) (153.9 ) Proceeds
from sale of business(5) 94.6 — Business acquired in purchase
transactions, net of cash and cash equivalents acquired (27.5 )
(3.6 ) Proceeds from sales of property, equipment and other assets
32.9 16.1 Settlement of foreign currency forward contracts
24.0 15.1
Cash flow (used in) provided by
investing activities (60.0 ) (126.3
) Net proceeds from short-term borrowings and
long-term debt 212.0 64.7 Cash used as collateral on borrowing
arrangements (20.3 ) (36.2 ) Repurchase of common stock (802.0 )
(184.0 ) Payments for debt issuance costs — (24.3 ) Payments for
debt extinguishment costs (108.3 ) (74.7 ) Dividends paid on common
stock (106.8 ) (110.9 ) Excess tax benefit from Common Stock issued
in the Settlement agreement 46.3 37.7 Excess tax benefit from stock
based compensation 13.1 — Proceeds of termination of interest rate
swaps — 3.1
Acquisition of common stock for tax
withholding obligations under our Omnibus stock plan and
2005Contingent Stock Plan
(9.3 ) (3.0 )
Cash flow (used in) provided by
financing activities (775.3 ) (327.6
) Effect of foreign currency exchange rates on
cash and cash equivalents (60.4 )
(37.4 ) Cash and cash equivalents beginning
of period $ 286.4 $ 992.4 Net
change in cash and cash equivalents 72.0
(706.0 )
Cash and cash equivalents end of period $
358.4 $ 286.4 Non-U.S.
GAAP Free Cash Flow: Cash flow from operating activities(4) $
967.7 $ (214.7 ) Capital expenditures for property and equipment
(184.0 ) (153.9 )
Free Cash Flow(6)
$
783.7 $ (368.6 ) Settlement agreement
and related items (4) (188.9 ) 967.4
Free
Cash Flow excluding Settlement agreement and related items
$ 594.8 $ 598.8
Additional Cash Flow Information: Interest payments, net of amounts
capitalized(7) $ 229.7 $ 710.4 Income tax payments $
101.6 $ 85.1 SARs payments (less amounts included in
restructuring payments) $ 20.7 $ 21.1 Restructuring
payments (including associated costs) $ 98.3 $ 108.1
__________
(1) The supplementary information included in this press
release for 2015 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) For the year ended December
31, 2014, certain amounts related to foreign currency gains and
losses, including the remeasurement loss related to Venezuelan
subsidiaries in 2014, the settlement of foreign currency forward
contracts, and cash flows associated with the extension of payment
terms on a vendor payment agreement were misclassified on the
Consolidated Statement of Cash Flows. The reclassification of these
items resulted in an increase in cash used in operating activities
of $13 million, a decrease to cash used in investing activities of
$15 million, and an increase of $15 million due to the effect of
foreign currency exchange rate changes in cash. Additionally, we
reclassified $13 million from accounts payable to short-term
borrowings related to extended payment terms on a vendor agreement
and $36 million from cash to other assets related to cash used as
collateral for borrowing agreements. (3) 2015 primarily consists of
loss on bond redemption of $110 million, depreciation and
amortization of $213 million, share-based compensation expense of
$61 million, and a remeasurement loss of $33 million, partially
offset by a gain on sale of business of $(25) million. 2014
primarily consists of depreciation and amortization of $267
million, profit sharing expense of $54 million, loss on debt
redemption and refinancing activities of $103 million and the
development grant matter of $14 million and a remeasurement loss of
$20 million, partially offset by gain on Settlement agreement of
$(21) million. (4) During the first quarter of 2015, the Company
received the tax refund of $235 million related to the Settlement
agreement payment. During the first quarter of 2014, we used $930
million of cash to fund the cash portion of the Settlement
agreement and related accrued interest. To fund the cash payment,
we used $555 million of cash and cash equivalents and utilized
borrowings of $260 million from our revolving credit facility and
$115 million from our accounts receivable securitization programs.
We recorded an excess tax benefit of $46 million as an out of
period adjustment in December 2015 and $38 million in December 2014
related to the 18 million shares of Common Stock issued in the
Settlement agreement. (5) During the second quarter of 2015, we
completed the sale of our North American foam trays and absorbent
pads business for net cash proceeds of $76 million, resulting in
the recording of a $27 million pre-tax gain and in the fourth
quarter we completed the sale of our European food trays business
for net cash proceeds of $19 million, resulting in the recording of
a $13 million pre-tax loss. (6) Free cash flow does not represent
residual cash available for discretionary expenditures, including
mandatory debt servicing requirements or non-discretionary
expenditures that are not deducted from this measure. (7) Interest
payments in 2014 include $417 million related to the Settlement
agreement.
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,
2015 2014
U.S. GAAP As
Reported
Less:SpecialItems(2)
Non-U.S.GAAPAdjusted
U.S. GAAP As
Reported
Less:SpecialItems(2)
Non-U.S.GAAPAdjusted
Net sales $ 1,753.9 $ —
$ 1,753.9 $ 1,973.7 $ —
$ 1,973.7 Cost of sales 1,117.3
2.1 1,119.4 1,301.4 (4.5
) 1,296.9
Gross profit 636.6
(2.1 ) 634.5 672.3 4.5
676.8 As a % of total net sales 36.3 % 36.2 % 34.1 % 34.3 %
Selling, general and administrative expenses 408.6 (11.5 ) 397.1
463.5 (12.8 ) 450.7 As a % of total net sales 23.3 % 22.6 % 23.5 %
22.8 % Amortization expense of intangible assets acquired 21.3
— 21.3 26.1
— 26.1 Stock appreciation rights
(benefit) expense (0.2 ) 0.2
— 4.9 (4.9 )
—
Restructuring and other charges 10.3 (10.3 )
— 34.1 (34.1 ) —
Operating profit 196.6 19.5 216.1
143.7 56.3 200.0 As a % of total net sales
11.2 % 12.3 % 7.3 % 10.1 % Interest expense (55.4 ) — (55.4 ) (65.6
) — (65.6 ) Foreign currency exchange gain (loss) related to
Venezuelan subsidiaries (2.4 ) 2.4 — (1.5 ) 1.5 — Gain (Loss) on
debt redemption and refinancing activities 0.7 (0.7 ) — (84.0 )
84.0 — Gain (Loss) on sale of business (3) (15.3 ) 15.3 — — — —
Other income (expense), net 1.5 1.3
2.8 3.0 1.3 4.3
Earnings before income tax provision 125.7
37.8 163.5 (4.4 ) 143.1
138.7 Income tax (benefit) provision 2.2
10.2 12.4 (70.7 ) 83.5
12.8 Effective income tax rate(4) 1.8 %
7.6 % # % 9.2 %
Net
income $ 123.5 $ 27.6
$ 151.1 $ 66.3 $
59.6 $ 125.9 Net earnings per
common share(5): Diluted $
0.62 $ 0.14 $ 0.76
$ 0.31 $ 0.28
$ 0.59 Weighted average number of
common shares
outstanding:
Diluted 198.4 198.4
198.4 212.1
212.1 212.1 Non-U.S.
GAAP Adjusted EBITDA: Non-U.S. GAAP Adjusted Operating
Profit $ 216.1 $ 200.0 Other income
(expense), net 2.8 4.3 Depreciation and amortization(6) 63.4 79.1
Write down of non-strategic assets, included in depreciation and
amortization — (1.9 )
Non-U.S. GAAP
Adjusted EBITDA $ 282.3 $
281.5 As a % of total net sales 16.1 % 14.3 %
__________
#
Not meaningful.
(1) The supplementary information included in this press release
for 2015 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 U.S. GAAP
reported results. These special items include restructuring and
other associated costs related to our previously announced Fusion
program (“Fusion”), Earnings Quality Improvement Program (“EQIP”)
and the Integration and Optimization Program (“IOP”) restructuring
programs, foreign currency exchange losses related to Venezuelan
subsidiaries, stock appreciation rights (“SARs”) expense, losses
recorded on debt redemption and refinancing activities, gain/loss
on sale of business, income from sale of equity method investment,
and a tax reserve recorded in relation to the tax refund received
on the Settlement agreement, partially offset by the release of
certain tax reserves recorded at the time of the Diversey Holdings,
Inc. acquisition. (3) In the fourth quarter we completed the sale
of our European food trays business for a pre-tax loss of $13
million. (4) Our Adjusted Tax Rate is defined as the effective
income tax rate on Non-U.S. GAAP Adjusted Net Earnings. (5) Net
earnings per common share is calculated under two-class method. See
our Quarterly Report on Form 10-Q for period ended September 30,
2015 for further details. (6) Depreciation and amortization
includes:
Three Months
Ended December 31, 2015 2014 Depreciation
of property, plant and equipment $ 30.1 $ 35.6 Amortization of
intangible assets acquired 21.3 26.1 Amortization of deferred
share-based compensation 12.0 17.4
Total
$ 63.4 $ 79.1 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,
2015 2014
U.S. GAAP As
Reported
Less:SpecialItems(2)
Non-U.S.GAAPAdjusted
U.S. GAAP As
Reported
Less:Special
Items(2)
Non-U.S.GAAPAdjusted
Net sales $ 7,031.5 $ —
$ 7,031.5 $ 7,750.5 $ —
$ 7,750.5 Cost of sales 4,444.9
— 4,444.9 5,062.9 (12.6 )
5,050.3
Gross profit 2,586.6 —
2,586.6 2,687.6 12.6 2,700.2 As a % of
total net sales 36.8 % 36.8 % 34.7 % 34.8 % Selling, general and
administrative expenses 1,652.3 (42.9 ) 1,609.4 1,841.3 (45.9 )
1,795.4 As a % of total net sales 23.5 % 22.9 % 23.8 % 23.2 %
Amortization expense of intangible assets acquired 88.7
—
88.7 118.9
— 118.9 Stock appreciation rights (benefit)
expense 3.9 (3.9 )
— 8.1 (8.1 )
— Restructuring and
other charges 78.3 (78.3 ) —
65.7 (65.7 ) —
Operating
profit 763.4 125.1 888.5 653.6
132.3 785.9 As a % of total net sales 10.9 % 12.6 %
8.4 % 10.1 % Interest expense (227.7 ) — (227.7 ) (287.7 ) — (287.7
) Impairments of equity method investment — — (5.7 ) 5.7 — Foreign
currency exchange loss related to Venezuelan subsidiaries (33.1 )
33.1 — (20.4 ) 20.4 — Gain from Claims Settlement — — — 21.1 (21.1
) — Gain (Loss) on debt redemption and refinancing activities
(110.0 ) 110.0 — (102.5 ) 102.5 — Gain (Loss) on sale of business
(3) 13.4 (13.4 ) — — — — Other income (expense), net 19.9
(8.6 ) 11.3 8.8
4.9 13.7
Earnings before income tax
provision 425.9 246.2
672.1 267.2
244.7 511.9 Income tax provision
90.5 45.5 136.0
9.1 103.9 113.0 Effective income
tax rate(4) 21.2 % 20.2 % 3.4 %
22.1 %
Net income $ 335.4
200.7 $ 536.1 $
258.1 $ 140.8 $
398.9 Net earnings per common
share(5): Diluted: $ 1.62
$ 0.97 $ 2.59
$ 1.20 $ 0.66 $
1.86 Weighted average number of common
shares
outstanding:
Diluted 206.7 206.7
206.7 213.9
213.9 213.9 Non-U.S.
GAAP Adjusted EBITDA: Non-U.S. GAAP Adjusted Operating
Profit $ 888.5 $ 785.9 Other income
(expense), net 11.3 13.7 Depreciation and amortization(6) 274.5
320.8 Write down of non-strategic assets, included in depreciation
and amortization (0.2 ) (2.1 )
Non-U.S. GAAP
Adjusted EBITDA $ 1,174.1 $
1,118.3 As a % of total net sales 16.7 % 14.4 %
__________
(1) The supplementary information included in this press
release for 2015 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
U.S. GAAP reported results. These special items include
restructuring and other associated costs related to our previously
announced Fusion program (“Fusion”), Earnings Quality Improvement
Program (“EQIP”) and the Integration and Optimization Program
(“IOP”) restructuring programs, foreign currency exchange losses
related to Venezuelan subsidiaries, stock appreciation rights
(“SARs”) expense, and losses recorded on debt redemption and
refinancing activities, gain/loss on sale of business, income from
sale of equity method investment, and a tax reserve recorded in
relation to the tax refund received on the Settlement agreement,
partially offset by the release of certain tax reserves recorded at
the time of the Diversey Holdings, Inc. acquisition. (3) During the
second quarter of 2015, we completed the sale of our North American
foam trays and absorbent pads business for a pre-tax gain $27
million and in the fourth quarter we completed the sale of our
European food trays business for a pre-tax loss of $13 million. (4)
Our Adjusted Tax Rate is defined as the effective income tax rate
on Non-U.S. GAAP Adjusted Net Earnings. (5) Net earnings per common
share is calculated under two-class method. See our Quarterly
Report on Form 10-Q for period ended September 30, 2015 for further
details. (6) Depreciation and amortization includes:
Year Ended December 31, 2015
2014 Depreciation of property, plant and
equipment $ 124.7 $ 147.8 Amortization of intangible assets
acquired 88.7 118.9 Amortization of deferred share-based
compensation 61.1 54.1
Total $
274.5 $ 320.8 SEALED AIR
CORPORATION SUPPLEMENTARY INFORMATION SEGMENT
INFORMATION (Unaudited)
Three Months Ended Year Ended
December 31, % December 31, %
2015 2014 Change 2015 2014
Change Net Sales: Food Care $ 842.3 $ 985.4
(14.5 ) % $ 3,405.1 $ 3,835.3 (11.2 ) % As a % of Total Company net
sales 48.0 % 49.9 % 48.4 % 49.5 % Diversey Care 494.4 535.9 (7.7 )
% 1,999.1 2,173.1 (8.0 ) % As a % of Total Company net sales 28.2 %
27.2 % 28.4 % 28.0 % Product Care 397.7 431.8 (7.9 ) % 1,540.5
1,655.0 (6.9 ) % As a % of Total Company net sales 22.7 %
21.9 % 21.9 % 21.4 %
Total
Reportable Segments Net Sales 1,734.4 1,953.1
(11.2 ) %
6,944.7 7,663.4 (9.4
) % Other 19.5 20.6 (5.3 ) %
86.8 87.1 (0.3 ) %
Total Company Net
Sales $ 1,753.9 $ 1,973.7
(11.1 ) %
$ 7,031.5
$ 7,750.5 (9.3 ) %
Three Months Ended Year Ended December
31, % December 31, % 2015
2014 Change 2015 2014 Change
Adjusted EBITDA: Food Care $ 157.2 $ 172.2 (8.7 ) % $
689.8 $ 670.2 2.9 % Adjusted EBITDA Margin 18.7 % 17.5 % 20.3 %
17.5 % Diversey Care 55.4 58.3 (5.0 ) % 231.9 245.0 (5.3 ) %
Adjusted EBITDA Margin 11.2 % 10.9 % 11.6 % 11.3 % Product Care
85.4 77.2 10.6 % 321.0 292.7 9.7 % Adjusted EBITDA Margin
21.5 % 17.9 % 20.8 % 17.7 %
Total Reportable Segments Adjusted
EBITDA
298.0 307.7 (3.2 ) %
1,242.7
1,207.9 2.9 % Other (15.7 ) (26.2 )
(40.1 ) % (68.6 ) (89.6 ) (23.4 ) %
Non-U.S. GAAP
Total Company
Adjusted EBITDA
$ 282.3 $ 281.5
0.3 %
$ 1,174.1 $
1,118.3 5.0 % Adjusted EBITDA Margin
16.1 % 14.3 % 16.7 % 14.4 %
__________
(1) The supplementary information included in this press
release for 2015 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.
SEALED AIR CORPORATION SEGMENT
INFORMATION – CONTINUED SUPPLEMENTARY
INFORMATION(1) RECONCILIATION OF NON-U.S. GAAP TOTAL
COMPANY ADJUSTED EBITDA TO U.S. GAAP NET EARNINGS FROM
CONTINUING OPERATIONS(Unaudited) (In
millions)
Three Months
Ended Year Ended December 31, December 31,
2015 2014 2015 2014 Non-U.S.
GAAP Total Company Adjusted EBITDA $ 282.3
$ 281.5 $ 1,174.1 $
1,118.3 Depreciation and amortization (2) (63.4 ) (79.1 )
(274.5 ) (320.8 ) Special items(3):
Accelerated depreciation of non-strategic
assets related torestructuring programs
— 1.9 0.2 2.1 Restructuring and other charges(4) (10.3 ) (34.1 )
(78.3 ) (65.7 )
Other restructuring associated costs
included in cost ofsales and selling, general and administrative
expenses
(11.1 ) (13.0 ) (42.9 ) (35.8 )
Development grant matter included in
selling, general andadministrative expenses(5)
— — — (14.0 ) Termination of licensing agreement — (5.3 ) — (5.3 )
SARs 0.2 (4.9 ) (3.9 ) (8.1 ) Impairments of equity method
investment — — — (5.7 ) Foreign currency exchange (loss) gains
related to
Venezuelan subsidiaries
(2.4 ) (1.5 ) (33.1 ) (20.4 ) Gain (loss) on debt redemption and
refinancing activities 0.7 (84.0 ) (110.0 ) (102.5 ) Gain from
Claims Settlement in 2014 and related costs — — — 21.1
Gain (loss) from sale of North American
foam trays and absorbentpads business and European food trays
business
(15.3 ) — 13.4 —
Non-operating charge for contingent
guarantee included in otherincome (expense), net
— — — (2.5 ) Other 0.4 (0.3 ) 8.6 (5.8 ) Interest expense (55.4 )
(65.6 ) (227.7 ) (287.7 ) Income tax (benefit) provision 2.2
(70.7 ) 90.5 9.1
U.S.
GAAP net income $ 123.5 $
66.3 $ 335.4 $
258.1
__________
(1) The supplementary information included in this press
release for 2015 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) Depreciation and
amortization by segment is as follows:
Three Months Ended Year Ended December 31,
December 31, 2015 2014 2015 2014
Food Care $ 26.2 $ 29.2 $ 108.0 $ 121.3 Diversey Care 28.4
27.4 105.4 126.3 Product Care 8.7 10.7 37.5
41.4
Total reportable segments 63.3
67.3 250.9 289.0 Other 0.1 11.8
23.6 31.8
Total Company depreciation and
amortization $ 63.4 $ 79.1 $
274.5 $ 320.8
__________
(3) Includes items we consider unusual or special items. See
Note 2 of “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,” for further information. (4) Restructuring and other
charges by segment is as follows:
Three Months Ended Year Ended
December 31, December 31, 2015
2014 2015 2014 Food Care $ 8.4 $
14.4 $ 37.9 $ 27.3 Diversey Care (3.3 ) 12.3 22.2 24.3 Product Care
4.6 7.3 17.2 13.6
Total
reportable segments 9.7 34.0 77.3
65.2 Other 0.6 0.1 1.0
0.5
Total Company restructuring and other charges $
10.3 $ 34.1 $ 78.3
$ 65.7 SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION COMPONENTS OF CHANGE IN NET
SALES BY SEGMENT(1) (Unaudited) (In
millions)
Three Months Ended December 31,
Food Care Diversey Care Product Care
Other
TotalCompany
2014 Net Sales $ 985.4 $ 535.9 $ 431.8 $ 20.6 $ 1,973.7
Volume - Units 11.3 1.1 % 3.2 0.6 % (11.3) (2.6) % (1.5) (7.3) %
1.7 0.1 % Price/mix (2) 17.0 1.7 % 12.5 2.3 % (0.6) (0.1) % 3.1
15.1 % 32.0 1.6 % Divestitures (63.6) (6.4) % — — %
— — % — — % (63.6) (3.2) %
Total constant
dollar change (Non-U.S. GAAP)(3)
(35.3) (3.6)
% 15.7 2.9 % (11.9) (2.7)
% 1.6 7.8 % (29.9) (1.5)
% Foreign currency translation (107.8) (10.9) %
(57.2) (10.6) % (22.2) (5.2) % (2.7) (13.1) %
(189.9) (9.6) %
Total change (U.S. GAAP)
(143.1) (14.5) % (41.5)
(7.7) % (34.1) (7.9) %
(1.1) (5.3) % (219.8)
(11.1) % 2015
Net Sales $ 842.3 $ 494.4 $
397.7 $ 19.5 $ 1,753.9
Year Ended December 31, Food Care Diversey
Care Product Care Other Total 2014 Net
Sales $ 3,835.3 $ 2,173.1 $ 1,655.0 $ 87.1 $ 7,750.5 Volume
- Units 52.0 1.3 % 25.7 1.2 % (37.9) (2.3) % 1.3 1.5 % 41.1 0.5 %
Price/mix (2) 101.2 2.6 % 41.4 1.9 % 22.1 1.4 % 10.9 12.5 % 175.6
2.3 % Divestitures (171.7) (4.4) % — — % — — %
— — % (171.7) (2.2) %
Total constant dollar change
(Non-U.S. GAAP)(3)
(18.5) (0.5) %
67.1 3.1 % (15.8) (0.9) %
12.2 14.0 % 45.0 0.6 %
Foreign currency translation (411.7) (10.7) % (241.1)
(11.1) % (98.7) (6.0) % (12.5) (14.3) %
(764.0) (9.9) %
Total change (U.S. GAAP)
(430.2) (11.2) % (174.0)
(8.0) % (114.5) (6.9) %
(0.3) (0.3) % (719.0)
(9.3) % 2015
Net Sales $ 3,405.1 $ 1,999.1
$ 1,540.5 $ 86.8 $
7,031.5
__________
(1) The supplementary information included in this press
release for 2015 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) Our 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 price/mix is the net effect of some
of our customers purchasing our products in non-U.S. dollar or 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. (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 BY REGION(1)(2) Unaudited (In
millions)
Three Months Ended December 31,
North America EMEA(3) Latin America
APAC(4) Total 2014 Net Sales(1) $ 785.4 $
691.5 $ 209.8 $ 287.0 $ 1,973.7 Volume - Units 8.6 1.1 %
14.3 2.1 % (17.5) (8.3) % (3.7) (1.3) % 1.7 0.1 % Price/mix (9.3)
(1.2) % 5.1 0.7 % 32.0 15.3 % 4.2 1.5 % 32.0 1.6 % Divestitures
(52.9) (6.7) % (10.7) (1.5) % — — % — —
% (63.6) (3.2) %
Total constant dollar change (Non-U.S.
GAAP) (53.6) (6.8) % 8.7 1.3
% 14.5 7.0 % 0.5 0.2
% (29.9) (1.5) % Foreign currency
translation (11.1) (1.4) % (93.6) (13.6) %
(53.2) (25.4) % (32.0) (11.2) % (189.9) (9.6) %
Total change (U.S. GAAP) (64.7) (8.2)
% (84.9) (12.3) %
(38.7) (18.4) % (31.5)
(11.0) % (219.8) (11.1) %
2015 Net Sales $
720.7 $ 606.6 $ 171.1 $
255.5 $ 1,753.9 Year Ended
December 31, North America EMEA(3)
Latin America APAC(4) Total 2014 Net
Sales $ 3,071.9 $ 2,783.2 $ 807.5 $ 1,087.9 $ 7,750.5 Volume
- Units 21.7 0.7 % 55.2 2.0 % (51.2) (6.3) % 15.4 1.4 % 41.1 0.5 %
Price/mix 28.0 0.9 % 34.4 1.2 % 102.1 12.6 % 11.1 1.0 % 175.6 2.3 %
Divestitures (161.0) (5.2) (10.7) (0.4) % — —
% — — % (171.7) (2.2) %
Total constant dollar
change (Non-U.S. GAAP) (111.3) (3.6) %
78.9 2.8 % 50.9 6.3 %
26.5 2.4 % 45.0 0.6 %
Foreign currency translation (37.4) (1.2) % (451.7)
(16.2) % (162.6) (20.1) % (112.3) (10.3) %
(764.0) (9.9) %
Total change (U.S. GAAP)
(148.7) (4.8) % (372.8)
(13.4) % (111.7) (13.8) %
(85.8) (7.9) % (719.0)
(9.3) % 2015
Net Sales $ 2,923.2 $ 2,410.4
$ 695.8 $ 1,002.1 $
7,031.5
__________
(1) The supplementary information included in this press
release for 2015 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) During the second quarter
of 2015, the Company underwent a reorganization of its Asia, Middle
East, Africa and Turkey region (AMAT). This reorganization involved
the transition of the AMAT region to an Asia Pacific region (APAC)
and moving the Middle East, Africa and Turkey countries into the
Company’s existing European regional organization (EMEA). (3) EMEA
consists of Europe, Middle East, Africa and Turkey. (4) APAC refers
collectively to our Asia Pacific region. This region consists of i)
Greater China, ii) India/Southeast Asia and iii) Australia, New
Zealand, Japan and Korea.
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version on businesswire.com: http://www.businesswire.com/news/home/20160210005490/en/
Sealed Air CorporationInvestors:Lori Chaitman,
201-703-4161orMedia:Ken Aurichio, 201-703-4164
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