|
|
(State or Other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
||
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
Exhibit
Number |
|
Description
|
99.1
|
Press Release dated November 19, 2020
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
BERRY GLOBAL GROUP, INC.
(Registrant)
|
|||
|
By:
|
/s/Jason K. Greene |
|
Dated: November 19, 2020 |
Name: |
Jason K. Greene | |
Title: |
Executive Vice President, Chief Legal Officer and Secretary | ||
|
News Release
|
|
|
|
Fourth Quarter Highlights
|
|
(all comparisons made to the September 2019 quarter)
|
•
|
Net sales of $3 billion with 4 percent organic volume growth
|
•
|
Operating income of $349 million
|
•
|
Operating EBITDA up 18 percent to $586 million
|
•
|
Net income per diluted share of $1.44
|
•
|
Adjusted net income per diluted share increase of 77 percent to $1.59
|
|
Fiscal Year Highlights
|
|
(all comparisons made to fiscal year 2019)
|
•
|
Net sales of $11.7 billion with 2 percent organic volume growth
|
•
|
Operating income up 21 percent to $1.2 billion
|
•
|
Operating EBITDA up 41 percent to $2.2 billion
|
•
|
Net income per diluted share up 38 percent to $4.14
|
•
|
Adjusted net income per diluted share increase of 42 percent to $4.85
|
•
|
RPC Group Plc (“RPC”) integration and synergy realization progressing better than plan
|
•
|
Exceeded guidance for both cash flow from operations and free cash flow, recording $1.5 billion and $947 million, respectively.
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
September 26, 2020
|
September 28, 2019
|
September 26, 2020
|
September 28, 2019
|
|||||||||||||
Net sales
|
$
|
3,008
|
$
|
3,019
|
$
|
11,709
|
$
|
8,878
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
2,342
|
2,511
|
9,301
|
7,259
|
||||||||||||
Selling, general and administrative
|
219
|
199
|
850
|
583
|
||||||||||||
Amortization of intangibles
|
74
|
75
|
300
|
194
|
||||||||||||
Restructuring and transaction activities
|
24
|
(164
|
)
|
79
|
(132
|
)
|
||||||||||
Operating income
|
349
|
398
|
1,179
|
974
|
||||||||||||
Other (income) expense, net
|
25
|
(4
|
)
|
31
|
155
|
|||||||||||
Interest expense, net
|
96
|
128
|
435
|
329
|
||||||||||||
Income before income taxes
|
228
|
274
|
713
|
490
|
||||||||||||
Income tax expense
|
33
|
45
|
154
|
86
|
||||||||||||
Net income
|
$
|
195
|
$
|
229
|
$
|
559
|
$
|
404
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
1.47
|
$
|
1.73
|
$
|
4.22
|
$
|
3.08
|
||||||||
Diluted
|
1.44
|
1.70
|
4.14
|
3.00
|
||||||||||||
Outstanding weighted-average shares: (in millions)
|
||||||||||||||||
Basic
|
133.1
|
132.2
|
132.6
|
131.3
|
||||||||||||
Diluted
|
135.4
|
134.4
|
135.1
|
134.6
|
||||||||||||
September 26, 2020
|
September 28, 2019
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
750
|
$
|
750
|
||||
Accounts receivable, net
|
1,469
|
1,526
|
||||||
Inventories
|
1,268
|
1,324
|
||||||
Other current assets
|
330
|
157
|
||||||
Property, plant, and equipment, net
|
4,561
|
4,714
|
||||||
Goodwill, intangible assets, and other long-term assets
|
8,323
|
7,998
|
||||||
Total assets
|
$
|
16,701
|
$
|
16,469
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
2,108
|
$
|
1,935
|
||||
Current and long-term debt
|
10,237
|
11,365
|
||||||
Other long-term liabilities
|
2,264
|
1,551
|
||||||
Stockholders’ equity
|
2,092
|
1,618
|
||||||
Total liabilities and stockholders' equity
|
$
|
16,701
|
$
|
16,469
|
Fiscal Year Ended
|
||||||||
September 26, 2020
|
September 28, 2019
|
|||||||
Cash flows from operating activities:
|
||||||||
Net
cash from operating activities
|
$
|
1,530
|
$
|
1,201
|
||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment, net
|
(583
|
)
|
(399
|
)
|
||||
Divestiture of business
|
—
|
326
|
||||||
Acquisition of business & purchase price derivatives
|
(14
|
)
|
(6,178
|
)
|
||||
Settlement of net investment hedges
|
281
|
—
|
||||||
Net cash from investing activities
|
(316
|
)
|
(6,251
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(2,436
|
)
|
(1,214
|
)
|
||||
Proceeds from long-term borrowings
|
1,202
|
6,784
|
||||||
Proceeds from issuance of common stock
|
30
|
55
|
||||||
Debt financing costs
|
(16
|
)
|
(87
|
)
|
||||
Repurchase of common stock
|
—
|
(74
|
)
|
|||||
Payment of tax receivable agreement
|
—
|
(38
|
)
|
|||||
Net cash from financing activities
|
(1,220
|
)
|
(5,426
|
)
|
||||
Effect of currency translation on cash
|
6
|
(7
|
)
|
|||||
Net change in cash and cash equivalents
|
—
|
369
|
||||||
Cash and cash equivalents at beginning of period
|
750
|
381
|
||||||
Cash and cash equivalents at end of period
|
$
|
750
|
$
|
750
|
Quarterly Period Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,071
|
$
|
746
|
$
|
604
|
$
|
587
|
$
|
3,008
|
||||||||||
Operating income
|
$
|
104
|
$
|
94
|
$
|
73
|
$
|
78
|
$
|
349
|
||||||||||
Depreciation and amortization
|
78
|
60
|
44
|
25
|
207
|
|||||||||||||||
Restructuring and transaction activities (1)
|
18
|
5
|
—
|
1
|
24
|
|||||||||||||||
Other non-cash charges (2)
|
2
|
1
|
1
|
2
|
6
|
|||||||||||||||
Operating EBITDA
|
$
|
202
|
$
|
160
|
$
|
118
|
$
|
106
|
$
|
586
|
||||||||||
Quarterly Period Ended September 28, 2019
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,077
|
$
|
744
|
$
|
570
|
$
|
628
|
$
|
3,019
|
||||||||||
Operating income
|
$
|
13
|
$
|
67
|
$
|
250
|
$
|
68
|
$
|
398
|
||||||||||
Depreciation and amortization
|
82
|
59
|
46
|
29
|
216
|
|||||||||||||||
Restructuring and transaction activities (1)
|
41
|
6
|
(212
|
)
|
3
|
(162
|
)
|
|||||||||||||
Other non-cash charges (2)
|
37
|
5
|
2
|
1
|
45
|
|||||||||||||||
Operating EBITDA
|
$
|
173
|
$
|
137
|
$
|
86
|
$
|
101
|
$
|
497
|
||||||||||
(1)
|
The current quarter primarily includes transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes the sale
of our Seal for Life business of $214 million partially offset by restructuring and transaction related costs from the RPC acquisition.
|
(2)
|
Other non-cash charges for the September 2020 quarter primarily includes $5 million of stock compensation expense. Other non-cash charges for the
September 2019 quarter primarily includes a $39 million inventory step up charge related to the RPC acquisition and $6 million of stock compensation expense.
|
Fiscal Year Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
4,195
|
$
|
2,850
|
$
|
2,330
|
$
|
2,334
|
$
|
11,709
|
||||||||||
Operating income
|
$
|
299
|
$
|
320
|
$
|
243
|
$
|
317
|
$
|
1,179
|
||||||||||
Depreciation and amortization
|
318
|
250
|
172
|
105
|
845
|
|||||||||||||||
Restructuring and transaction activities (1)
|
55
|
11
|
6
|
7
|
79
|
|||||||||||||||
Other non-cash charges (2)
|
31
|
10
|
5
|
8
|
54
|
|||||||||||||||
Operating EBITDA
|
$
|
703
|
$
|
591
|
$
|
426
|
$
|
437
|
$
|
2,157
|
||||||||||
Fiscal Year Ended September 28, 2019*
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,229
|
$
|
2,636
|
$
|
2,475
|
$
|
2,538
|
$
|
8,878
|
||||||||||
Operating income
|
$
|
12
|
$
|
234
|
$
|
410
|
$
|
318
|
$
|
974
|
||||||||||
Depreciation and amortization
|
93
|
216
|
188
|
116
|
613
|
|||||||||||||||
Restructuring and transaction activities (1)
|
54
|
14
|
(198
|
)
|
8
|
(126
|
)
|
|||||||||||||
Other non-cash charges (2)
|
38
|
11
|
9
|
11
|
69
|
|||||||||||||||
Operating EBITDA
|
$
|
197
|
$
|
475
|
$
|
405
|
$
|
453
|
$
|
1,530
|
||||||||||
(1)
|
Restructuring and transaction activity costs for the fiscal year ended September 26, 2020, are primarily related to the RPC acquisition. Restructuring
and transaction activity costs for the fiscal year ended September 28, 2019, are primarily related to the sale of our Seal for Life business of $214 million, partially offset by restructuring and transaction activity costs from the RPC
acquisition.
|
(2)
|
Other non-cash charges for the fiscal year ended September 26, 2020 primarily includes $33 million of stock compensation expense and a $19 million
inventory step-up related to the RPC acquisition. Other non-cash charges for the fiscal year ended September 28, 2019 includes a$39 million inventory step up charge related to the RPC acquisition, $27 million of stock compensation expense
and a $5 million inventory step up charge related to acquisitions and other non-cash charges.
* Prior year has been restated to match our current structure.
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
September 26, 2020
|
September 28, 2019
|
September 26, 2020
|
September 28, 2019
|
|||||||||||||
Net income
|
$
|
195
|
$
|
229
|
$
|
559
|
$
|
404
|
||||||||
Add: other (income) expense, net
|
25
|
(4
|
)
|
31
|
155
|
|||||||||||
Add: interest expense, net
|
96
|
128
|
435
|
329
|
||||||||||||
Add: income tax expense
|
33
|
45
|
154
|
86
|
||||||||||||
Operating income
|
$
|
349
|
$
|
398
|
$
|
1,179
|
$
|
974
|
||||||||
Add: non-cash amortization from 2006 private sale
|
6
|
7
|
25
|
28
|
||||||||||||
Add: restructuring and transaction activities (1)
|
24
|
(162
|
)
|
79
|
(126
|
)
|
||||||||||
Add: other non-cash charges (2)
|
6
|
45
|
54
|
69
|
||||||||||||
Adjusted operating income (8)
|
$
|
385
|
$
|
288
|
$
|
1,337
|
$
|
1,240
|
||||||||
Add: depreciation
|
133
|
141
|
545
|
419
|
||||||||||||
Add: amortization of intangibles (3)
|
68
|
68
|
275
|
166
|
||||||||||||
Operating EBITDA (8)
|
$
|
586
|
$
|
497
|
$
|
2,157
|
$
|
1,530
|
||||||||
Add: Unrealized synergies (4)
|
62
|
|||||||||||||||
Adjusted EBITDA (8)
|
$
|
2,219
|
Cash flow from operating activities
|
$
|
552
|
$
|
630
|
$
|
1,530
|
$
|
1,201
|
||||||||
Net additions to property, plant, and equipment
|
(165
|
)
|
(128
|
)
|
(583
|
)
|
(399
|
)
|
||||||||
Payment of tax receivable agreement
|
—
|
(22
|
)
|
—
|
(38
|
)
|
||||||||||
Free cash flow (8)
|
$
|
387
|
$
|
480
|
$
|
947
|
$
|
764
|
||||||||
Net income per diluted share
|
$
|
1.44
|
$
|
1.70
|
$
|
4.14
|
$
|
3.00
|
||||||||
Other expense, net
|
0.18
|
(0.03
|
)
|
0.23
|
1.15
|
|||||||||||
Non-cash amortization from 2006 private sale
|
0.04
|
0.05
|
0.19
|
0.21
|
||||||||||||
Restructuring and transaction activities
|
0.18
|
(1.20
|
)
|
0.58
|
(0.93
|
)
|
||||||||||
Other non-cash charges (5)
|
—
|
0.29
|
0.14
|
0.29
|
||||||||||||
Non-comparable tax items (6)
|
(0.15
|
)
|
—
|
(0.15
|
)
|
—
|
||||||||||
Income tax impact on items above (7)
|
(0.10
|
)
|
0.09
|
(0.28
|
)
|
(0.31
|
)
|
|||||||||
Adjusted net income per diluted share (8)
|
$
|
1.59
|
$
|
0.90
|
$
|
4.85
|
$
|
3.41
|
||||||||
Estimated
Fiscal 2021
|
||||||||||||||||
Cash flow from operating activities
|
$
|
1,525 - $1,625
|
||||||||||||||
Additions to property, plant, and equipment
|
(650
|
)
|
||||||||||||||
Free cash flow (8)
|
$
|
875 - $975
|