|
|
(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 18, 2021
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
Berry Global Group, Inc.
(Registrant)
|
|||
Dated: November 18, 2021
|
By:
|
/s/ Jason K. Greene |
|
Name: |
Jason K. Greene |
||
Title: |
Executive Vice President, Chief Legal Officer and Secretary |
||
|
News Release
|
|
|
|
Fourth Quarter and Fiscal Year Highlights
(all comparisons made to the September 2020 quarter and fiscal year 2020)
|
•
|
Net sales growth of 22% and 18% in the quarter and fiscal year, respectively
|
•
|
Fiscal year organic volume growth of 4%; HHS +5%, CPNA +4%, EM +4% and CPI +3%
|
•
|
Fiscal year net income per share (EPS) up 28% to $5.30 and adjusted EPS up 20% to $5.80 ($7.21 including amortization of intangibles from acquisitions)
|
•
|
Cash flow from operations and free cash flow of $1.6B and $904M, respectively
|
•
|
Fiscal 2022 expecting 2% organic volume growth and adjusted EPS of $7.20 - $7.70 (including amortization of intangibles from acquisitions)
|
•
|
Fiscal 2022 expecting cash flow from operations of $1.7- $1.8B and free cash flow of $900M -$1B
|
Consolidated Overview
|
||||||||||||||||
Fiscal Year
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
13,850
|
$
|
11,709
|
$
|
2,141
|
18
|
%
|
||||||||
Operating income
|
1,292
|
1,179
|
113
|
10
|
%
|
Consumer Packaging – International
|
||||||||||||||||
Fiscal Year
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
4,242
|
$
|
3,789
|
$
|
453
|
12
|
%
|
||||||||
Operating income
|
317
|
273
|
44
|
16
|
%
|
Consumer Packaging – North America
|
||||||||||||||||
Fiscal Year
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
3,141
|
$
|
2,560
|
$
|
581
|
23
|
%
|
||||||||
Operating income
|
276
|
275
|
1
|
-
|
%
|
Health, Hygiene & Specialties
|
||||||||||||||||
Fiscal Year
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
3,158
|
$
|
2,594
|
$
|
564
|
22
|
%
|
||||||||
Operating incom
|
398
|
295
|
103
|
35
|
%
|
Engineered Materials
|
||||||||||||||||
Fiscal Year
|
||||||||||||||||
(in millions of dollars)
|
Current
|
Prior
|
$ Change
|
% Change
|
||||||||||||
Net sales
|
$
|
3,309
|
$
|
2,766
|
$
|
543
|
20
|
%
|
||||||||
Operating income
|
301
|
336
|
(35
|
)
|
(10
|
)%
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
October 2,
2021
|
September 26,
2020
|
October 2,
2021
|
September 26,
2020
|
|||||||||||||
Net sales
|
$
|
3,669
|
$
|
3,008
|
$
|
13,850
|
$
|
11,709
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
3,078
|
2,342
|
11,352
|
9,301
|
||||||||||||
Selling, general and administrative
|
199
|
219
|
867
|
850
|
||||||||||||
Amortization of intangibles
|
69
|
74
|
288
|
300
|
||||||||||||
Restructuring and transaction activities
|
11
|
24
|
51
|
79
|
||||||||||||
Operating income
|
312
|
349
|
1,292
|
1,179
|
||||||||||||
Other expense (income), net
|
6
|
25
|
51
|
31
|
||||||||||||
Interest expense, net
|
79
|
96
|
336
|
435
|
||||||||||||
Income before income taxes
|
227
|
228
|
905
|
713
|
||||||||||||
Income tax (benefit) expense
|
(1
|
)
|
33
|
172
|
154
|
|||||||||||
Net income
|
$
|
228
|
$
|
195
|
$
|
733
|
$
|
559
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
1.68
|
$
|
1.47
|
$
|
5.45
|
$
|
4.22
|
||||||||
Diluted
|
1.64
|
1.44
|
5.30
|
4.14
|
||||||||||||
Outstanding weighted-average shares: (in millions)
|
||||||||||||||||
Basic
|
135.4
|
133.1
|
134.6
|
132.6
|
||||||||||||
Diluted
|
138.7
|
135.4
|
138.3
|
135.1
|
||||||||||||
October 2, 2021
|
September 26, 2020
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,091
|
$
|
750
|
||||
Accounts receivable, net
|
1,879
|
1,469
|
||||||
Inventories
|
1,907
|
1,268
|
||||||
Other current assets
|
217
|
330
|
||||||
Property, plant, and equipment, net
|
4,677
|
4,561
|
||||||
Goodwill, intangible assets, and other long-term assets
|
8,111
|
8,323
|
||||||
Total assets
|
$
|
17,882
|
$
|
16,701
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
3,165
|
$
|
2,108
|
||||
Current and long-term debt
|
9,460
|
10,237
|
||||||
Other long-term liabilities
|
2,077
|
2,264
|
||||||
Stockholders’ equity
|
3,180
|
2,092
|
||||||
Total liabilities and stockholders' equity
|
$
|
17,882
|
$
|
16,701
|
Fiscal Year Ended
|
||||||||
October 2, 2021
|
September 26, 2020
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
733
|
$
|
559
|
||||
Adjustments to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
566
|
545
|
||||||
Amortization of intangibles
|
288
|
300
|
||||||
Non-cash interest
|
32
|
27
|
||||||
Deferred income tax
|
(73
|
)
|
(96
|
)
|
||||
Share-based compensation expense
|
40
|
33
|
||||||
Other non-cash operating activities, net
|
49
|
53
|
||||||
Changes in working capital
|
(55
|
)
|
109
|
|||||
Net cash from operating activities
|
1,580
|
1,530
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment, net
|
(676
|
)
|
(583
|
)
|
||||
Divestiture of businesses
|
165
|
—
|
||||||
Settlement of net investment hedges
|
—
|
281
|
||||||
Other investing activities
|
—
|
(14
|
)
|
|||||
Net cash from investing activities
|
(511
|
)
|
(316
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(3,496
|
)
|
(2,436
|
)
|
||||
Proceeds from long-term borrowings
|
2,716
|
1,202
|
||||||
Proceeds from issuance of common stock
|
60
|
30
|
||||||
Debt financing costs
|
(21
|
)
|
(16
|
)
|
||||
Net cash from financing activities
|
(741
|
)
|
(1,220
|
)
|
||||
Effect of currency translation on cash
|
13
|
6
|
||||||
Net change in cash and cash equivalents
|
341
|
—
|
||||||
Cash and cash equivalents at beginning of period
|
750
|
750
|
||||||
Cash and cash equivalents at end of period
|
$
|
1,091
|
$
|
750
|
Quarterly Period Ended October 2, 2021
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,099
|
$
|
878
|
$
|
809
|
$
|
883
|
$
|
3,669
|
||||||||||
Operating income
|
$
|
102
|
$
|
64
|
$
|
76
|
$
|
70
|
$
|
312
|
||||||||||
Depreciation and amortization
|
83
|
60
|
47
|
25
|
215
|
|||||||||||||||
Restructuring and transaction activities (1)
|
12
|
(1
|
)
|
—
|
—
|
11
|
||||||||||||||
Other non-cash charges
|
(11
|
)
|
1
|
1
|
1
|
(8
|
)
|
|||||||||||||
Operating EBITDA
|
$
|
186
|
$
|
124
|
$
|
124
|
$
|
96
|
$
|
530
|
||||||||||
Quarterly Period Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
985
|
$
|
672
|
$
|
671
|
$
|
680
|
$
|
3,008
|
||||||||||
Operating income
|
$
|
97
|
$
|
83
|
$
|
88
|
$
|
81
|
$
|
349
|
||||||||||
Depreciation and amortization
|
76
|
57
|
46
|
28
|
207
|
|||||||||||||||
Restructuring and transaction activities (1)
|
18
|
5
|
—
|
1
|
24
|
|||||||||||||||
Other non-cash charges
|
2
|
1
|
1
|
2
|
6
|
|||||||||||||||
Operating EBITDA
|
$
|
193
|
$
|
146
|
$
|
135
|
$
|
112
|
$
|
586
|
||||||||||
(1)
|
Primarily includes transaction activity costs related to the RPC acquisition.
|
Fiscal Year Ended October 2, 2021
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
4,242
|
$
|
3,141
|
$
|
3,158
|
$
|
3,309
|
$
|
13,850
|
||||||||||
Operating income
|
$
|
317
|
$
|
276
|
$
|
398
|
$
|
301
|
$
|
1,292
|
||||||||||
Depreciation and amortization
|
341
|
224
|
177
|
112
|
854
|
|||||||||||||||
Restructuring and transaction activities (1)
|
56
|
—
|
(1
|
)
|
(4
|
)
|
51
|
|||||||||||||
Other non-cash charges (2)
|
—
|
10
|
9
|
8
|
27
|
|||||||||||||||
Operating EBITDA
|
$
|
714
|
$
|
510
|
$
|
583
|
$
|
417
|
$
|
2,224
|
||||||||||
Fiscal Year Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
3,789
|
$
|
2,560
|
$
|
2,594
|
$
|
2,766
|
$
|
11,709
|
||||||||||
Operating income
|
$
|
273
|
$
|
275
|
$
|
295
|
$
|
336
|
$
|
1,179
|
||||||||||
Depreciation and amortization
|
315
|
230
|
184
|
116
|
845
|
|||||||||||||||
Restructuring and transaction activities (1)
|
55
|
11
|
6
|
7
|
79
|
|||||||||||||||
Other non-cash charges (2)
|
31
|
10
|
5
|
8
|
54
|
|||||||||||||||
Operating EBITDA
|
$
|
674
|
$
|
526
|
$
|
490
|
$
|
467
|
$
|
2,157
|
||||||||||
(1)
(2)
|
Primarily includes transaction activity costs related to the RPC acquisition.
Other non-cash charges, for the current and prior years, primarily include stock compensation expense.
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
October 2, 2021
|
September 26, 2020
|
October 2, 2021
|
September 26, 2020
|
|||||||||||||
Net income
|
$
|
228
|
$
|
195
|
$
|
733
|
$
|
559
|
||||||||
Add: other expense, net
|
6
|
25
|
51
|
31
|
||||||||||||
Add: interest expense, net
|
79
|
96
|
336
|
435
|
||||||||||||
Add: income tax (benefit) expense
|
(1
|
)
|
33
|
172
|
154
|
|||||||||||
Operating income
|
$
|
312
|
$
|
349
|
$
|
1,292
|
$
|
1,179
|
||||||||
Add: non-cash amortization from 2006 private sale
|
6
|
6
|
24
|
25
|
||||||||||||
Add: restructuring and transaction activities
|
11
|
24
|
51
|
79
|
||||||||||||
Add: other non-cash charges
|
(8
|
)
|
6
|
27
|
54
|
|||||||||||
Adjusted operating income (6)
|
$
|
321
|
$
|
385
|
$
|
1,394
|
$
|
1,337
|
||||||||
Add: depreciation
|
146
|
133
|
566
|
545
|
||||||||||||
Add: amortization of intangibles
|
63
|
68
|
264
|
275
|
||||||||||||
Operating EBITDA (6)
|
$
|
530
|
$
|
586
|
$
|
2,224
|
$
|
2,157
|
||||||||
Less: divestitures and prior year extra days (1)
|
(30
|
)
|
||||||||||||||
Adjusted EBITDA (6)
|
$
|
2,194
|
Cash flow from operating activities
|
$
|
668
|
$
|
552
|
$
|
1,580
|
||||||||||
Net additions to property, plant, and equipment
|
(156
|
)
|
(165
|
)
|
(676
|
)
|
||||||||||
Free cash flow (6)
|
$
|
512
|
$
|
387
|
$
|
904
|
Net income per diluted share
|
$
|
1.64
|
$
|
1.44
|
$
|
5.30
|
$
|
4.14
|
||||||||
Other expense, net
|
0.04
|
0.18
|
0.37
|
0.23
|
||||||||||||
Non-cash amortization from 2006 private sale (2)
|
0.04
|
0.04
|
0.18
|
0.19
|
||||||||||||
Restructuring and transaction activities
|
0.08
|
0.18
|
0.37
|
0.58
|
||||||||||||
Other non-cash charges (3)
|
—
|
—
|
—
|
0.14
|
||||||||||||
Non-comparable tax items (4)
|
(0.22
|
)
|
(0.15
|
)
|
(0.22
|
)
|
(0.15
|
)
|
||||||||
Income tax impact on items above
|
(0.03
|
)
|
(0.10
|
)
|
(0.20
|
)
|
(0.28
|
)
|
||||||||
Adjusted net income per diluted share (6)
|
$
|
1.55
|
$
|
1.59
|
$
|
5.80
|
$
|
4.85
|
||||||||
Comparable for Fiscal 2022
|
||||||||||||||||
Adjustment for additional days in fiscal 2021
|
—
|
—
|
(0.02
|
)
|
—
|
|||||||||||
Amortization of intangibles from acquisitions (5)(tax affected)
|
0.34
|
0.38
|
1.43
|
1.53
|
||||||||||||
Adjusted net income per diluted share (6)
|
$
|
1.89
|
$
|
1.97
|
$
|
7.21
|
$
|
6.38
|
||||||||
Estimated
Fiscal 2022
|
||||||||||||||||
Cash flow from operating activities
|
$
|
1,700 - 1,800
|
||||||||||||||
Additions to property, plant, and equipment
|
(800
|
)
|
||||||||||||||
Free cash flow (6)
|
$
|
900 - 1,000
|
||||||||||||||