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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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Exhibit
Number |
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Description
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99.1
99.2
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Press Release dated February 3, 2022.
Press Release dated February 3, 2022.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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BERRY GLOBAL GROUP, INC.
(Registrant)
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|||
Dated: February 3, 2022
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By:
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/s/ Jason K. Greene |
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Name: |
Jason K. Greene | ||
Title: |
Executive Vice President, Chief Legal Officer and Secretary | ||
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News Release
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First Fiscal Quarter Highlights
(all comparisons made to the December 2020 quarter)
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●
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Net sales of $3.6 billion, a 14% increase
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●
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Operating income of $229 million; Operating EBITDA of $457 million
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●
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Diluted net income per share of $0.87; Adjusted diluted net income per share of $1.25
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●
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Authorized new share repurchase plan of $1 billion; expect to repurchase at least $350 million of shares outstanding in fiscal 2022
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●
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Reaffirmed fiscal 2022 adjusted EPS guidance of $7.20 to $7.70
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●
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Expect +2% organic volume growth in fiscal 2022
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●
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Reaffirmed cash flow from operations and free cash flow guidance
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(Dec ’21 vs Dec’20)
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(Dec ’21 vs Dec’19)
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|||||||
December Quarterly Volumes:
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Comparable
(organic volumes)
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2-Year Basis
(organic volumes)
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||||||
Consumer Packaging – Int’l
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-1
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%
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+ 3
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%
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||||
Consumer Packaging – N.A.
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-2
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%
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+ 6
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%
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||||
Health, Hygiene & Specialties
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-4
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%
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+11
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%
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||||
Engineered Materials
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-4
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%
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- 2
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%
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||||
Consolidated Total
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-3
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%
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+ 4
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%
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Quarterly Period Ended
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||||||||
January 1,
2022
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January 2,
2021
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|||||||
Net sales
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$
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3,573
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$
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3,136
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||||
Costs and expenses:
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||||||||
Cost of goods sold
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3,038
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2,518
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||||||
Selling, general and administrative
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235
|
241
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||||||
Amortization of intangibles
|
68
|
74
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||||||
Restructuring and transaction activities
|
3
|
(1
|
)
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|||||
Operating income
|
229
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304
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||||||
Other expense, net
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-
|
25
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||||||
Interest expense, net
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71
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97
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||||||
Income before income taxes
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158
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182
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||||||
Income tax expense
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37
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52
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||||||
Net income
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$
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121
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$
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130
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||||
Net income per share:
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||||||||
Basic
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$
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0.89
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$
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0.97
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||||
Diluted
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0.87
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0.96
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||||||
Outstanding weighted-average shares: (in millions)
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||||||||
Basic
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135.4
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133.6
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||||||
Diluted
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138.9
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135.7
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||||||
January 1, 2022
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October 2, 2021
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|||||||
Assets:
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||||||||
Cash and cash equivalents
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$
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582
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$
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1,091
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||||
Accounts receivable
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1,828
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1,879
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||||||
Inventories
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2,041
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1,907
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||||||
Other current assets
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237
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217
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||||||
Property, plant, and equipment
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4,672
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4,677
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||||||
Goodwill, intangible assets, and other long-term assets
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7,981
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8,111
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||||||
Total assets
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$
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17,341
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$
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17,882
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||||
Liabilities and Stockholders' Equity:
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||||||||
Current liabilities, excluding debt
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$
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2,644
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$
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3,165
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||||
Current and long-term debt
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9,431
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9,460
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||||||
Other long-term liabilities
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1,972
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2,077
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||||||
Stockholders’ equity
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3,294
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3,180
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||||||
Total liabilities and stockholders' equity
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$
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17,341
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$
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17,882
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Quarterly Period Ended
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||||||||
January 1, 2022
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January 2, 2021
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|||||||
Cash flows from operating activities:
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||||||||
Net income
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$
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121
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$
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130
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||||
Adjustments to reconcile net cash provided by operating activities:
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||||||||
Depreciation
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143
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141
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||||||
Amortization of intangibles
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68
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74
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||||||
Non-cash interest
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3
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8
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||||||
Deferred income tax
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(12
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)
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(19
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)
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||||
Share-based compensation expense
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21
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21
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||||||
Other non-cash operating activities, net
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(8
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)
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5
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|||||
Changes in working capital
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(640
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)
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(45
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)
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||||
Net cash from operating activities
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(304
|
)
|
315
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|||||
Cash flows from investing activities:
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||||||||
Additions to property, plant, and equipment, net
|
(162
|
)
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(162
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)
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||||
Divestiture of businesses
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-
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140
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||||||
Net cash from investing activities
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(162
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)
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(22
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)
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||||
Cash flows from financing activities:
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||||||||
Repayments on long-term borrowings
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(5
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)
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(985
|
)
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||||
Proceeds from long-term borrowings
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-
|
750
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||||||
Proceeds from issuance of common stock
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16
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7
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||||||
Debt financing costs
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-
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(6
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)
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|||||
Repurchase of common stock
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(51
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)
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-
|
|||||
Net cash from financing activities
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(40
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)
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(234
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)
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||||
Effect of currency translation on cash
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(3
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)
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38
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|||||
Net change in cash and cash equivalents
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(509
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)
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97
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|||||
Cash and cash equivalents at beginning of period
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1,091
|
750
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||||||
Cash and cash equivalents at end of period
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$
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582
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$
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847
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Quarterly Period Ended January 1, 2022
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||||||||||||||||||||
Consumer Packaging - International
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Consumer Packaging- North America
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Health, Hygiene & Specialties
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Engineered Materials
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Total
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||||||||||||||||
Net sales
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$
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1,056
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$
|
852
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$
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818
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$
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847
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$
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3,573
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||||||||||
Operating income
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$
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69
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$
|
46
|
$
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62
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$
|
52
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$
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229
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||||||||||
Depreciation and amortization
|
82
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54
|
45
|
30
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211
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|||||||||||||||
Restructuring and transaction activities (1)
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2
|
1
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(1
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)
|
1
|
3
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||||||||||||||
Other non-cash charges
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—
|
5
|
5
|
4
|
14
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|||||||||||||||
Operating EBITDA
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$
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153
|
$
|
106
|
$
|
111
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$
|
87
|
$
|
457
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||||||||||
Quarterly Period Ended January 2, 2021
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||||||||||||||||||||
Consumer Packaging - International
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Consumer Packaging - North America
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Health, Hygiene & Specialties
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Engineered Materials
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Total
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||||||||||||||||
Net sales
|
$
|
988
|
$
|
686
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$
|
740
|
$
|
722
|
$
|
3,136
|
||||||||||
Operating income
|
$
|
76
|
$
|
59
|
$
|
96
|
$
|
73
|
$
|
304
|
||||||||||
Depreciation and amortization
|
84
|
56
|
45
|
30
|
215
|
|||||||||||||||
Restructuring and transaction activities (1)
|
3
|
1
|
—
|
(5
|
)
|
(1
|
)
|
|||||||||||||
Other non-cash charges
|
7
|
5
|
4
|
5
|
21
|
|||||||||||||||
Operating EBITDA
|
$
|
170
|
$
|
121
|
$
|
145
|
$
|
103
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$
|
539
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||||||||||
(1)
|
Primarily includes transaction activity costs related to the RPC acquisition.
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Quarterly Period Ended
|
||||||||
January 1, 2022
|
January 2, 2021
|
|||||||
Net income
|
$
|
121
|
$
|
130
|
||||
Add: other expense
|
—
|
25
|
||||||
Add: interest expense
|
71
|
97
|
||||||
Add: income tax expense
|
37
|
52
|
||||||
Operating income
|
$
|
229
|
$
|
304
|
||||
Add: restructuring and transaction activities
|
3
|
(1
|
)
|
|||||
Add: other non-cash charges
|
14
|
21
|
||||||
Adjusted operating income (2)
|
$
|
246
|
$
|
324
|
||||
Add: depreciation
|
143
|
141
|
||||||
Add: amortization of intangibles
|
68
|
74
|
||||||
Operating EBITDA (2)
|
$
|
457
|
$
|
539
|
||||
Cash flow from operating activities
|
$
|
(304
|
)
|
$
|
315
|
|||
Net additions to property, plant, and equipment
|
(162
|
)
|
(162
|
)
|
||||
Free cash flow (2)
|
$
|
(466
|
)
|
$
|
153
|
|||
Net income per diluted share
|
$
|
0.87
|
$
|
0.96
|
||||
Other expense, net
|
—
|
0.18
|
||||||
Restructuring and transaction activities
|
0.02
|
(0.01
|
)
|
|||||
Amortization of intangibles from acquisitions (1)
|
0.49
|
0.55
|
||||||
Adjustment for additional days in prior year quarter
|
—
|
(0.02
|
)
|
|||||
Income tax impact on items above
|
(0.13
|
)
|
(0.18
|
)
|
||||
Adjusted net income per diluted share (2)
|
$
|
1.25
|
$
|
1.48
|
||||
Estimated
Fiscal 2022
|
||||||||
Cash flow from operating activities
|
$
|
1,700 - 1,800
|
|
|||||
Additions to property, plant, and equipment
|
(800
|
)
|
||||||
Free cash flow (2)
|
$
|
900 - 1,000
|
||||||
(1)
|
Amortization of intangibles from acquisition will be added back for fiscal year 2022 and going forward to better align our calculation of adjusted EPS with
peers.
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(2)
|
Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States
(“GAAP”). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. Organic sales growth excludes the
impact of currency translation effects and acquisitions. These non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures.
Berry’s management believes that adjusted net income and other non-GAAP financial measures are useful to our investors because they allow for a better period-over-period comparison of operating results by removing the impact of items that,
in management’s view, do not reflect our core operating performance.
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|
We define “free cash flow” as cash flow from operating activities less additions to property, plant, and equipment. We believe free cash flow is useful to
an investor in evaluating our liquidity because free cash flow and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company’s liquidity. We also believe free cash
flow is useful to an investor in evaluating our liquidity as it can assist in assessing a company’s ability to fund its growth through its generation of cash.
|
|
Adjusted EBITDA is used by our lenders for debt covenant compliance purposes. We also use Adjusted EBITDA and Operating EBITDA among other measures to
evaluate management performance and in determining performance-based compensation. Adjusted EBITDA and Operating EBITDA and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to
measure a company’s performance. We also believe EBITDA and Adjusted net income are useful to an investor in evaluating our performance without regard to revenue and expense recognition, which can vary depending upon accounting methods.
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News Release
|
|
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Investor Contact:
|
|
|
Media Contact:
|
Dustin Stilwell
1+812.306.2964
ir@berryglobal.com
|
|
|
Eva Schmitz
1+812.306.2424
evaschmitz@berryglobal.com
|