³Ô¹Ï51±¬ÁÏÍø Holdings, Inc. Reports Third Quarter 2024 Results
Net sales in the third quarter were
Income from operations was
Commenting on the quarter,
"Strong operating performance combined with lower capital expenditures resulted in the Company generating cash from operating activities of
During the third quarter, the Company transferred portions of its
Net loss attributable to
Nine Month Results
Net sales for the first nine months of 2024 were
Income from operations was
Net income attributable to
Outlook
The Company now projects full-year adjusted diluted earnings per share in the range of
Fourth quarter adjusted diluted earnings per share are expected to be in the range of
Non-GAAP Measures
Segment income, adjusted free cash flow, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA are not defined terms under
The Company views segment income as the principal measure of the performance of its operations and adjusted free cash flow and adjusted net leverage ratio as the principal measures of its liquidity. The Company considers all of these measures in the allocation of resources. Adjusted free cash flow has certain limitations, however, including that it does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. The Company believes that adjusted free cash flow and adjusted net leverage ratio provide meaningful measures of liquidity and a useful basis for assessing the Company's ability to fund its activities, including the financing of acquisitions, debt repayments, share repurchases or dividends. The Company believes that adjusted net income, segment income, the adjusted effective tax rate and adjusted diluted earnings per share are useful in evaluating the Company's operations as these measures are adjusted for items that affect comparability between periods. Segment income, adjusted free cash flow, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA are derived from the Company's Consolidated Statements of Operations, Cash Flows and Consolidated Balance Sheets, as applicable, and reconciliations to segment income, adjusted free cash flow, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share and adjusted EBITDA can be found within this release. Reconciliations of estimated adjusted diluted earnings per share, adjusted effective tax rate and adjusted net leverage ratio for the fourth quarter and full year of 2024 to estimated diluted earnings per share, the effective tax rate and income from operations on a GAAP basis are not provided in this release due to the unavailability of estimates of the following, the timing and magnitude of which the Company is unable to reliably forecast without unreasonable efforts, which are excluded from estimated adjusted diluted earnings per share and could have a significant impact on earnings per share, adjusted effective tax rates and adjusted net leverage ratios on a GAAP basis: gains or losses on the sale of businesses or other assets, restructuring and other costs, asset charges, asbestos-related charges, losses from early extinguishment of debt, pension settlement and curtailment charges, the tax and noncontrolling interest impact of the items above, and the impact of tax law changes or other tax matters.
Conference Call
The Company will hold a conference call tomorrow,
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including the Company's ability to continue to operate its plants, distribute its products, and maintain its supply chain; the future impact of currency translation; the continuation of performance and market trends in 2024, including consumer preference for beverage cans and global beverage can demand; the future impact of inflation, including the potential for higher interest rates and energy prices and the Company's ability to recover raw material and other inflationary costs; future demand for food cans; the Company's ability to deliver continuous operational improvement; future demand in the
For more information, contact:
Unaudited Consolidated Statements of Operations, Balance Sheets, Statements of Cash Flows, Segment Information and Supplemental Data follow.
Consolidated Statements of Operations (Unaudited) (in millions, except share and per share data)
|
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2024 |
2023 |
2024 |
2023 |
||||
Net sales |
|
$ 3,069 |
$ 8,898 |
$ 9,152 |
|||
Cost of products sold |
2,383 |
2,427 |
7,009 |
7,301 |
|||
Depreciation and amortization |
114 |
124 |
344 |
372 |
|||
Selling and administrative expense |
146 |
129 |
450 |
437 |
|||
Restructuring and other |
(13) |
15 |
27 |
32 |
|||
Income from operations (1) |
444 |
374 |
1,068 |
1,010 |
|||
Pension settlements and curtailments |
517 |
519 |
|||||
Other pension and postretirement |
6 |
11 |
28 |
38 |
|||
Foreign exchange |
3 |
13 |
15 |
31 |
|||
Earnings (loss) before interest and taxes |
(82) |
350 |
506 |
941 |
|||
Interest expense |
119 |
111 |
344 |
323 |
|||
Interest income |
(24) |
(13) |
(60) |
(34) |
|||
Income (loss) from operations before income taxes |
(177) |
252 |
222 |
652 |
|||
Provision for income taxes |
(39) |
62 |
55 |
163 |
|||
Equity earnings |
6 |
10 |
1 |
20 |
|||
Net income (loss) |
(132) |
200 |
168 |
509 |
|||
Net income attributable to noncontrolling interests |
43 |
41 |
102 |
91 |
|||
Net income (loss) attributable to |
$ (175) |
$ 159 |
$ |
66 |
$ 418 |
||
Earnings (loss) per share attributable to common shareholders: |
|||||||
Basic |
$ (1.47) |
$ 1.33 |
$ 0.55 |
$ 3.50 |
|||
Diluted |
$ (1.47) |
$ 1.33 |
$ 0.55 |
$ 3.49 |
|||
Weighted average common shares outstanding: |
|||||||
Basic |
119,267,481 |
119,495,455 |
119,497,199 |
119,375,527 |
|||
Diluted |
119,267,481 |
119,740,429 |
119,725,711 |
119,658,885 |
|||
Actual common shares outstanding at quarter end |
119,637,068 |
120,646,389 |
119,637,068 |
120,646,389 |
|||
(1) Reconciliation from income from operations to segment income follows.
|
Consolidated Supplemental Financial Data (Unaudited)
(in millions)
Reconciliation from Income from Operations to Segment Income
The Company views segment income, as defined below, as a principal measure of performance of its operations and for the allocation of resources. Segment income is defined by the Company as income from operations adjusted to exclude intangibles amortization charges and provisions for restructuring and other.
Three Months Ended |
Nine Months Ended September 30, |
||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||
Income from operations |
$ |
444 |
$ |
374 |
$ |
1,068 |
$ |
1,010 |
|||||
Intangibles amortization |
41 |
41 |
122 |
122 |
|||||||||
Restructuring and other |
(13) |
15 |
27 |
32 |
|||||||||
Segment income |
$ |
472 |
$ |
430 |
$ |
1,217 |
$ |
1,164 |
Segment Information
|
|||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||
Americas Beverage |
$ |
1,368 |
$ |
1,295 |
$ |
3,915 |
$ |
3,848 |
|||||
European Beverage |
573 |
536 |
1,615 |
1,547 |
|||||||||
|
284 |
307 |
853 |
977 |
|||||||||
|
526 |
554 |
1,596 |
1,715 |
|||||||||
Other (1) |
323 |
377 |
919 |
1,065 |
|||||||||
Total net sales |
$ |
3,074 |
$ |
3,069 |
$ |
8,898 |
$ |
9,152 |
|||||
Segment Income |
|||||||||||||
Americas Beverage |
$ |
280 |
$ |
232 |
$ |
712 |
$ |
621 |
|||||
European Beverage (2) |
86 |
73 |
225 |
181 |
|||||||||
|
50 |
33 |
147 |
107 |
|||||||||
|
70 |
89 |
211 |
256 |
|||||||||
Other (1) |
27 |
37 |
49 |
100 |
|||||||||
Corporate and other unallocated items (2) |
(41) |
(34) |
(127) |
(101) |
|||||||||
Total segment income |
$ |
472 |
$ |
430 |
$ |
1,217 |
$ |
1,164 |
(1) |
Includes the Company's food can, aerosol can and closures businesses in |
(2) |
During the fourth quarter of 2023, the Company recast its segment reporting to reclassify European corporate costs that were previously included in Corporate and other unallocated items into the European Beverage segment. The change was effective |
Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)
Reconciliation from Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Diluted Earnings Per Share
The following table reconciles reported net income and diluted earnings per share attributable to the Company to adjusted net income and adjusted diluted earnings per share, as used elsewhere in this release.
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||
Net income (loss)/diluted earnings per share attributable to |
$ |
(175) |
$ |
(1.47) |
$ |
159 |
$ |
1.33 |
$ |
66 |
$ |
0.55 |
$ |
418 |
$ |
3.49 |
||||||||||||
Intangibles amortization (1) |
41 |
0.34 |
41 |
0.34 |
122 |
1.02 |
122 |
1.02 |
||||||||||||||||||||
Restructuring and other (2) |
(13) |
(0.11) |
15 |
0.12 |
27 |
0.22 |
32 |
0.27 |
||||||||||||||||||||
Pension settlements/curtailments (3) |
517 |
4.33 |
519 |
4.34 |
6 |
0.05 |
||||||||||||||||||||||
Income taxes (4) |
(134) |
(1.12) |
(10) |
(0.08) |
(171) |
(1.43) |
(33) |
(0.28) |
||||||||||||||||||||
Equity earnings (5) |
2 |
0.02 |
2 |
0.02 |
14 |
0.12 |
7 |
0.06 |
||||||||||||||||||||
Adjusted net income/diluted earnings per share |
$ |
238 |
$ |
1.99 |
$ |
207 |
$ |
1.73 |
$ |
577 |
$ |
4.82 |
$ |
552 |
$ |
4.61 |
||||||||||||
Effective tax rate as reported |
22.0 % |
24.6 % |
24.8 % |
25.0 % |
||||||||||||||||||||||||
Adjusted effective tax rate |
25.8 % |
23.4 % |
25.4 % |
24.1 % |
Adjusted net income, adjusted diluted earnings per share and the adjusted effective tax rate are non-GAAP measures and are not meant to be considered in isolation or as a substitute for net income, diluted earnings per share and effective tax rates determined in accordance with
(1) |
In the third quarter and first nine months of 2024, the Company recorded charges of |
(2) |
In the third quarter of 2024, the Company recorded net restructuring and other gains of |
(3) |
In the first nine months of 2024, the Company recorded charges of |
(4) |
The Company recorded income tax benefits of |
(5) |
In the third quarters and first nine months of 2024 and 2023, the Company recorded its proportional share of intangible amortization and restructuring charges, net of tax, recorded by its European tinplate equity method investment, in the line Equity earnings. |
Consolidated Balance Sheets (Condensed & Unaudited) (in millions) |
||||||||
|
2024 |
2023 |
||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
1,738 |
$ |
807 |
||||
Receivables, net |
1,577 |
1,751 |
||||||
Inventories |
1,565 |
1,664 |
||||||
Prepaid expenses and other current assets |
230 |
230 |
||||||
Total current assets |
5,110 |
4,452 |
||||||
|
4,169 |
4,242 |
||||||
Property, plant and equipment, net |
5,021 |
4,876 |
||||||
Other non-current assets |
795 |
751 |
||||||
Total assets |
$ |
15,095 |
$ |
14,321 |
||||
Liabilities and equity |
||||||||
Current liabilities |
||||||||
Short-term debt |
$ |
89 |
$ |
51 |
||||
Current maturities of long-term debt |
749 |
774 |
||||||
Accounts payable and accrued liabilities |
3,398 |
3,132 |
||||||
Total current liabilities |
4,236 |
3,957 |
||||||
Long-term debt, excluding current maturities |
6,672 |
6,240 |
||||||
Other non-current liabilities |
1,142 |
1,296 |
||||||
Noncontrolling interests |
513 |
487 |
||||||
|
2,532 |
2,341 |
||||||
Total equity |
3,045 |
2,828 |
||||||
Total liabilities and equity |
$ |
15,095 |
$ |
14,321 |
||||
Consolidated Statements of Cash Flows (Condensed & Unaudited) (in millions) |
||||||||||
Nine months ended |
2024 |
2023 |
||||||||
Cash flows from operating activities |
||||||||||
Net income |
$ |
168 |
$ |
509 |
||||||
Depreciation and amortization |
344 |
372 |
||||||||
Restructuring and other |
27 |
32 |
||||||||
Pension and postretirement expense |
564 |
54 |
||||||||
Pension contributions |
(122) |
(10) |
||||||||
Stock-based compensation |
32 |
27 |
||||||||
Working capital changes and other |
(116) |
(152) |
||||||||
Net cash provided by operating activities |
897 |
832 |
||||||||
Cash flows from investing activities |
||||||||||
Capital expenditures |
(254) |
(614) |
||||||||
Equity method investment distribution |
56 |
|||||||||
Other |
46 |
38 |
||||||||
Net cash used for investing activities |
(208) |
(520) |
||||||||
Cash flows from financing activities |
||||||||||
Net change in debt |
3 |
116 |
||||||||
Dividends paid to shareholders |
(90) |
(86) |
||||||||
Common stock repurchased |
(117) |
(12) |
||||||||
Dividends paid to noncontrolling interests |
(45) |
(44) |
||||||||
Other, net |
(11) |
(9) |
||||||||
Net cash provided by/(used for) financing activities |
(260) |
(35) |
||||||||
Effect of exchange rate changes on cash and cash equivalents |
4 |
(14) |
||||||||
Net change in cash and cash equivalents |
433 |
263 |
||||||||
Cash and cash equivalents at |
1,400 |
639 |
||||||||
Cash, cash equivalents and restricted cash at |
$ |
1,833 |
$ |
902 |
||||||
(1) Cash and cash equivalents include |
Adjusted free cash flow is defined by the Company as net cash from operating activities less capital expenditures and certain other items. A reconciliation of net cash from operating activities to adjusted free cash flow for the three and nine months ended
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net cash provided by operating activities |
$ 554 |
$ 539 |
$ 897 |
$ 832 |
||||||||||||
Interest included in investing activities (2) |
12 |
12 |
25 |
25 |
||||||||||||
Capital expenditures |
(76) |
(160) |
(254) |
(614) |
||||||||||||
Other (3) |
(24) |
|||||||||||||||
Adjusted free cash flow |
$ 490 |
$ 391 |
$ 668 |
$ 219 |
(2) |
Interest benefit of cross currency swaps included in investing activities. |
(3) |
Includes |
Consolidated Supplemental Data (Unaudited) (in millions)
Impact of Foreign Currency Translation – Favorable/(Unfavorable) (1)
|
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
Segment Income |
|
Segment Income |
|||||||||||||
Americas Beverage |
$ |
(12) |
$ |
$ |
(6) |
$ |
1 |
|||||||||
European Beverage |
4 |
1 |
9 |
|||||||||||||
|
2 |
1 |
(10) |
(1) |
||||||||||||
|
(2) |
(6) |
||||||||||||||
Other |
(1) |
1 |
1 |
|||||||||||||
$ |
(9) |
$ |
3 |
$ |
(12) |
$ |
- |
|||||||||
(1) |
The impact of foreign currency translation represents the difference between actual current year |
Reconciliation of Adjusted EBITDA and Adjusted Net Leverage Ratio |
||||||||||||||||
September |
September |
Full Year |
Twelve Months Ended |
Twelve Months Ended |
||||||||||||
YTD 2024 |
YTD 2023 |
2023 |
|
|
||||||||||||
Income from operations |
$ |
1,068 |
$ |
1,010 |
$ |
1,269 |
$ |
1,327 |
$ |
1,239 |
||||||
Add: |
||||||||||||||||
Intangibles amortization |
122 |
122 |
163 |
163 |
162 |
|||||||||||
Restructuring and other |
27 |
32 |
114 |
109 |
55 |
|||||||||||
Segment income |
1,217 |
1,164 |
1,546 |
1,599 |
1,456 |
|||||||||||
Depreciation |
222 |
250 |
336 |
308 |
324 |
|||||||||||
Adjusted EBITDA |
$ |
1,439 |
$ |
1,414 |
$ |
1,882 |
$ |
1,907 |
$ |
1,780 |
||||||
Total debt |
$ |
7,474 |
$ |
7,510 |
$ |
7,065 |
||||||||||
Less cash |
1,310 |
1,738 |
807 |
|||||||||||||
Net debt |
$ |
6,164 |
$ |
5,772 |
$ |
6,258 |
||||||||||
Adjusted net leverage ratio |
3.3x |
3.0x |
3.5x |
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