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(State or Other Jurisdiction of Incorporation)
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(I.R.S. Employer Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Item 2.02 |
Results of Operations and Financial Condition.
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Item 9.01 |
Financial Statements and Exhibits.
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Exhibit
Number |
|
Description
|
99.1
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Press Release dated February 5, 2021
|
|
104
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
BERRY GLOBAL GROUP, INC. | |||
(Registrant) | |||
Date: February 5, 2021
|
By:
|
/s/ Jason K. Greene |
|
Name: |
Jason K. Greene |
||
Title: |
Executive Vice President,
Chief Legal Officer and Secretary
|
||
|
News Release
|
|
|
|
First
Quarter Highlights
(all comparisons made to the December 2019 quarter)
|
•
|
Net sales of $3.1 billion; 7 percent organic volume growth
|
•
|
Operating income up 53 percent to $304 million
|
•
|
Operating EBITDA up 20 percent to $539 million
|
•
|
Net income per diluted share up 174 percent to $0.96
|
•
|
Adjusted net income per diluted share increase of 100 percent to $1.12
|
•
|
Increased fiscal 2021 organic volume growth assumption by 2 percent, now targeting 4 percent
|
•
|
Raised fiscal 2021 operating EBITDA guidance range by $25 million to $2.175 - $2.225 billion
|
•
|
Reaffirmed cash flow from operations and free cash flow guidance
|
December Quarterly Volumes:
|
As Reported
|
Extra Shipping Days
|
Comparable
(organic volume growth)
|
|||||||||
Consumer Packaging – Int’l
|
4
|
%
|
-
|
4
|
%
|
|||||||
Consumer Packaging – N.A.
|
13
|
%
|
5
|
%
|
8
|
%
|
||||||
Health, Hygiene & Specialties
|
21
|
%
|
6
|
%
|
15
|
%
|
||||||
Engineered Materials
|
7
|
%
|
5
|
%
|
2
|
%
|
||||||
Consolidated Total
|
11
|
%
|
4
|
%
|
7
|
%
|
Quarterly Period Ended
|
||||||||
January 2, 2021
|
December 28, 2019
|
|||||||
Net sales
|
$
|
3,136
|
$
|
2,816
|
||||
Costs and expenses:
|
||||||||
Cost of goods sold
|
2,518
|
2,296
|
||||||
Selling, general and administrative
|
241
|
229
|
||||||
Amortization of intangibles
|
74
|
75
|
||||||
Restructuring and transaction activities
|
(1
|
)
|
17
|
|||||
Operating income
|
304
|
199
|
||||||
Other expense, net
|
25
|
13
|
||||||
Interest expense, net
|
97
|
118
|
||||||
Income before income taxes
|
182
|
68
|
||||||
Income tax expense
|
52
|
21
|
||||||
Net income
|
$
|
130
|
$
|
47
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
0.97
|
$
|
0.36
|
||||
Diluted
|
0.96
|
0.35
|
||||||
Outstanding weighted-average shares: (in millions)
|
||||||||
Basic
|
133.6
|
132.3
|
||||||
Diluted
|
135.7
|
134.3
|
||||||
January 2, 2021
|
September 26, 2020
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
847
|
$
|
750
|
||||
Accounts receivable, net
|
1,456
|
1,469
|
||||||
Inventories
|
1,503
|
1,268
|
||||||
Other current assets
|
177
|
330
|
||||||
Property, plant, and equipment, net
|
4,734
|
4,561
|
||||||
Goodwill, intangible assets, and other long-term assets
|
8,459
|
8,323
|
||||||
Total assets
|
$
|
17,176
|
$
|
16,701
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
2,224
|
$
|
2,108
|
||||
Current and long-term debt
|
10,081
|
10,237
|
||||||
Other long-term liabilities
|
2,426
|
2,264
|
||||||
Stockholders’ equity
|
2,445
|
2,092
|
||||||
Total liabilities and stockholders' equity
|
$
|
17,176
|
$
|
16,701
|
Quarterly Period Ended
|
||||||||
January 2, 2021
|
December 28, 2019
|
|||||||
Cash flows from operating activities:
|
||||||||
Net
cash from operating activities
|
315
|
218
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment, net
|
(162
|
)
|
(148
|
)
|
||||
Divestiture of business
|
140
|
—
|
||||||
Net cash from investing activities
|
(22
|
)
|
(148
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(985
|
)
|
(164
|
)
|
||||
Proceeds from long-term borrowings
|
750
|
—
|
||||||
Proceeds from issuance of common stock
|
7
|
2
|
||||||
Debt financing costs
|
(6
|
)
|
(2
|
)
|
||||
Net cash from financing activities
|
(234
|
)
|
(164
|
)
|
||||
Effect of currency translation on cash
|
38
|
17
|
||||||
Net change in cash and cash equivalents
|
97
|
(77
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
750
|
750
|
||||||
Cash and cash equivalents at end of period
|
$
|
847
|
$
|
673
|
Quarterly Period Ended January 2, 2021
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
988
|
$
|
686
|
$
|
740
|
$
|
722
|
$
|
3,136
|
||||||||||
Operating income
|
$
|
71
|
$
|
59
|
$
|
96
|
$
|
78
|
$
|
304
|
||||||||||
Depreciation and amortization
|
89
|
56
|
45
|
25
|
215
|
|||||||||||||||
Restructuring and transaction activities (1)
|
3
|
1
|
—
|
(5
|
)
|
(1
|
)
|
|||||||||||||
Other non-cash charges (2)
|
7
|
5
|
4
|
5
|
21
|
|||||||||||||||
Operating EBITDA
|
$
|
170
|
$
|
121
|
$
|
145
|
$
|
103
|
$
|
539
|
||||||||||
Quarterly Period Ended December 28, 2019
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
930
|
$
|
611
|
$
|
610
|
$
|
665
|
$
|
2,816
|
||||||||||
Operating income
|
$
|
38
|
$
|
44
|
$
|
47
|
$
|
70
|
$
|
199
|
||||||||||
Depreciation and amortization
|
87
|
56
|
47
|
26
|
216
|
|||||||||||||||
Restructuring and transaction activities (1)
|
10
|
2
|
2
|
3
|
17
|
|||||||||||||||
Other non-cash charges (2)
|
6
|
5
|
4
|
4
|
19
|
|||||||||||||||
Operating EBITDA
|
$
|
141
|
$
|
107
|
$
|
100
|
$
|
103
|
$
|
451
|
||||||||||
(1)
|
The current quarter primarily includes a gain on the divestment of our U.S. flexible packaging converting business partially offset by transaction
activity costs related to the RPC acquisition. The prior year quarter primarily includes transaction activity costs related to the RPC acquisition.
|
(2)
|
Other non-cash charges for the December 2020 and December 2019 quarters primarily include stock compensation expense of $21 million and $19 million,
respectively.
|
Quarterly Period Ended
|
Four Quarters Ended
|
|||||||||||
January 2, 2021
|
December 28, 2019
|
January 2, 2021
|
||||||||||
Net income
|
$
|
130
|
$
|
47
|
$
|
642
|
||||||
Add: other expense, net
|
25
|
13
|
43
|
|||||||||
Add: interest expense, net
|
97
|
118
|
414
|
|||||||||
Add: income tax expense
|
52
|
21
|
185
|
|||||||||
Operating income
|
$
|
304
|
$
|
199
|
$
|
1,284
|
||||||
Add: non-cash amortization from 2006 private sale
|
6
|
7
|
24
|
|||||||||
Add: restructuring and transaction activities (1)
|
(1
|
)
|
17
|
61
|
||||||||
Add: other non-cash charges (2)
|
21
|
19
|
56
|
|||||||||
Adjusted operating income (6)
|
$
|
330
|
$
|
242
|
$
|
1,425
|
||||||
Add: depreciation
|
141
|
141
|
545
|
|||||||||
Add: amortization of intangibles (3)
|
68
|
68
|
275
|
|||||||||
Operating EBITDA (6)
|
$
|
539
|
$
|
451
|
$
|
2,245
|
||||||
Add: unrealized synergies and divestiture (4)
|
11
|
|||||||||||
Adjusted EBITDA (6)
|
$
|
2,256
|
Cash flow from operating activities
|
$
|
315
|
$
|
218
|
$
|
1,627
|
||||||
Net additions to property, plant, and equipment
|
(162
|
)
|
(148
|
)
|
(597
|
)
|
||||||
Free cash flow (6)
|
$
|
153
|
$
|
70
|
$
|
1,030
|
||||||
Net income per diluted share
|
$
|
0.96
|
$
|
0.35
|
|
|
||||||
Other expense, net
|
0.18
|
0.10
|
||||||||||
Non-cash amortization from 2006 private sale
|
0.04
|
0.05
|
||||||||||
Restructuring and transaction activities
|
(0.01
|
)
|
0.13
|
|||||||||
Income tax impact on items above (5)
|
(0.05
|
)
|
(0.07
|
)
|
||||||||
Adjusted net income per diluted share (6)
|
$
|
1.12
|
$
|
0.56
|
||||||||
Estimated
Fiscal 2021
|
||||||||||||
Cash flow from operating activities
|
$
|
1,525 - $1,625
|
||||||||||
Additions to property, plant, and equipment
|
(650)
|
|
||||||||||
Free cash flow (6)
|
$
|
875 - $975
|
||||||||||