Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,403.21 -21.64 -0.13%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,071.71 -14.51 -0.36%
Ticker Volume Price Price Delta
STOXX 50 3,147.19 7.93 0.25%
FTSE 100 6,604.68 20.51 0.31%
DAX 9,378.27 60.45 0.65%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,760.24 64.23 0.28%

Sealed Air Reports First Quarter 2013 Results



  Sealed Air Reports First Quarter 2013 Results

  Q1 Adjusted EBITDA of $227 million; $245 million excluding impact of SARs
          Q1 Adjusted EPS of $0.17, Reported EPS of $0.01 per share
              Q1 Adjusted EPS of $0.24, excluding impact of SARs

Business Wire

ELMWOOD PARK, N.J. -- May 01, 2013

Sealed Air Corporation (NYSE:SEE) today announced financial results for first
quarter 2013. Net sales for the first quarter 2013 totaled $1.9 billion.
Adjusted EPS was $0.17 for the first quarter and Adjusted EBITDA was $227
million, or 12.2% of net sales. Excluding $15 million (net of taxes) of
expense resulting from cash-settled Stock Appreciation Rights granted as part
of the Diversey acquisition (“SARs”) Adjusted EPS was $0.24 and Adjusted
EBITDA was $245 million, or 13.2% of net sales. Additional detail on SARs is
provided in our supplemental information. On a reported basis, net income was
$2.7 million, or $0.01 per share.

Unless otherwise stated, all results compare first quarter 2013 results to
first quarter 2012 results, and are presented on a continuing operations
basis, excluding Diversey Japan, which we sold in November 2012 and have
presented as discontinued operations. Reported information is defined as U.S.
GAAP. Year-over-year net sales discussions present both reported and constant
dollar performance. The latter excludes the impact of currency translation.
Additionally, our adjusted financial measures, such as Adjusted EBITDA and
Adjusted Net Earnings, exclude the impact of special items, such as
restructuring charges and other one-time costs.

First Quarter Highlights:

First quarter net sales increased 0.4% with 1.0% higher volumes and 0.2%
price/mix partially offset by 0.8% of unfavorable currency translation.
Reported regional net sales increased 7.1% for AMAT (Asia, Middle East, Africa
and Turkey), 5.4% for Latin America, and 0.2% for North America, partially
offset by 2.1% lower net sales in Europe and 2.3% in JANZ (Japan/Australia/New
Zealand). Additionally, first quarter net sales to Developing Regions^1
increased 9.0% on a constant dollar basis over 2012 and accounted for 23.6% of
global net sales.

Adjusted EBITDA for the first quarter of $227 million was essentially flat
compared with 2012, primarily driven by volume growth, offset by inflationary
costs, unfavorable price and customer mix, as well as higher SARs expense.
Excluding SARs expense, first quarter Adjusted EBITDA was $245 million, or
13.2% of net sales, compared to $240 million, or 13.0% of net sales, in 2012.
Incremental cost synergies under the 2011-2014 Integration and Optimization
Program were $29 million for the first quarter of 2013 and resulted from
headcount reductions, elimination of redundant costs, plant consolidations and
procurement and logistics savings. Reported operating profit was $130 million
for first quarter 2013 compared with $83 million in 2012.

Adjusted EPS was $0.17 for the first quarter, compared with 2012 Adjusted EPS
of $0.16. Excluding SARs expense, first quarter Adjusted EPS was $0.24
compared with 2012 Adjusted EPS of $0.20. On a reported basis, first quarter
2013 EPS was $0.01 per share as compared with a loss of $0.04 per share in
2012. First quarter 2013 reported EPS includes $34 million of special items
(net of taxes) comprised of a loss on debt redemption of $20 million, losses
related to the devaluation of the Venezuelan bolivar in February 2013 of $11
million, and costs associated with the 2011 – 2014 Integration and
Optimization Program of $3 million. First quarter 2012 reported loss per share
included $43 million of special items primarily comprised of restructuring
charges associated with the 2011 – 2014 Integration and Optimization Program.
Our core tax rate was 19.4% for first quarter 2013, compared with 22.3% for
first quarter 2012.

Commenting on the first quarter results, Jerome A. Peribere, President and
Chief Executive Officer, said, “While we are pleased with the continued growth
in our developing regions and the performance of our operations in delivering
efficiencies and cost synergies, economic challenges in Europe remain
persistent. We experienced Adjusted EBITDA margin expansion in our Food &
Beverage division, but margin performance was challenging in our Institutional
& Laundry and Protective Packaging divisions. All of our divisions are
actively managing for margin improvement for the balance of 2013.”

First Quarter Segment Review

Food & Beverage (F&B) Division

Net sales increased 1.9% on a constant dollar basis and 0.8% on a reported
basis. F&B achieved 1.8% higher volumes, led by 2.5% volume growth in hygiene
solutions and 1.7% volume growth in the food packaging businesses. Price/mix
was higher by 0.1%, primarily due to strength in Latin America, which more
than offset pricing pressures in Europe and the impact of contract pricing in
North America. Net sales were impacted by 1.1% unfavorable currency
translation. Regionally, F&B achieved double-digit volume growth in AMAT and
Latin America, offsetting slight declines in Europe and North America. F&B
Adjusted EBITDA increased 4.1% to $131 million, or 14.5% of net sales,
compared with $126 million, or 14.1% of net sales, in 2012, primarily from
higher volumes, operational efficiencies and reduced expenses. Excluding SARs
expense, Adjusted EBITDA increased 5.6% to $136 million, or 15.0% of net
sales, compared with $129 million, or 14.4% of net sales, in 2012. Reported
operating profit was $93 million for first quarter 2013, compared with $82
million in 2012.

Institutional & Laundry (I&L) Division

Net sales increased 1.2% on a constant dollar basis and 0.5% on a reported
basis. I&L achieved 0.1% higher volumes and 1.1% higher price, offset by 0.7%
of unfavorable currency translation. Regionally, constant dollar net sales
growth was led by Latin America, (10.5%), AMAT (8.8%), and North America
(3.0%), offset by a decline in Europe (3.7%). Adjusted EBITDA decreased 26.2%
to $26 million, or 5.1% of net sales, compared with $36 million, or 7.0% of
net sales, in 2012. This decrease was primarily due to higher SARs expense and
unfavorable price/mix. These negative factors were partially offset by cost
synergies associated with the 2011 – 2014 Integration and Optimization
Program. Excluding SARs expense, Adjusted EBITDA decreased 11.7% to $39
million, or 7.7% of net sales, compared with $45 million, or 8.7% of net sales
in 2012. Reported operating loss was $9 million for first quarter 2013,
compared with a loss of $1 million in first quarter 2012.

Protective Packaging (PP) Division

Net sales decreased 0.8% on a constant dollar basis and 1.2% on a reported
basis. Protective Packaging achieved 0.1% higher volumes, offset by 0.9% lower
price/mix, and unfavorable currency translation of 0.4%. Growth in North
America was more than offset by volume weakness in Europe and to a lesser
extent JANZ on continued manufacturing weakness in those regions. Adjusted
EBITDA decreased 4.6% to $58 million, or 14.9% of net sales, compared with $60
million, or 15.4% of net sales, in 2012. Adjusted EBITDA decreased on
unfavorable mix and negative price-cost spread partially offset by reduced
expenses. Reported operating profit was $47 million for first quarter 2013
compared with $51 million in 2012.

Medical Applications and New Ventures (Other Category)

Net sales increased 4.1% on a reported and constant dollar basis, with 2.5%
higher volumes and 1.6% from favorable price/mix. This increase was primarily
driven by increased market penetration in Europe, offset by weakness in China.
Adjusted EBITDA declined to $2 million, compared with $3 million in 2012 due
to additional business development costs. Reported operating loss was $1
million.

Cash Flow and Net Debt

Net cash used by operating activities for first quarter 2013 was $39 million
and is net of $19 million of restructuring payments. This compares with cash
used of $93 million in first quarter 2012, and is net of $26 million of
restructuring payments. First quarter cash used by operating activities
included an $80 million increase in inventories and an $11 million increase in
receivables, offset by an increase in accounts payable of $99 million. The
increase in inventories and related payables from December 31, 2012 represents
a rebuild from the destocking at the end of 2012, as well as planning for
historically seasonally higher sales in the second quarter. Capital
expenditures were $26 million in first quarter 2013 and $31 million in first
quarter 2012. Free Cash Flow, defined as cash flow from operating activities
less capital expenditures, was a use of $65 million during first quarter 2013,
as compared with a use of $125 million during first quarter 2012.

In first quarter 2013, the Company’s net debt increased by $92 million to $4.9
billion. This increase is due to lower cash as a result of seasonal inventory
growth, certain annual incentive compensation payments, and payments related
to the refinancing of the Company’s 7.875% senior notes. The Company
refinanced these notes with new 5.25% senior notes due 2023. Net debt includes
the W. R. Grace settlement liability of $889 million that increased $12
million due to additional accrued interest in the first quarter.

Outlook for Full Year 2013

Mr. Peribere noted, “As we have been communicating since shortly after I
joined Sealed Air, our cost structure remains too large despite our positive
integration and optimization cost synergy accomplishments. We must continue to
adapt our operating structure to the economic environment in each of the
regions we serve. As a result, we are announcing an earnings quality
improvement plan aimed at delayering management and making us more cost
efficient, especially in Europe. The plan is estimated to generate annualized
savings of approximately $80 million by the end of 2015 at an estimated total
cost in the range of $180 to $200 million. Savings for 2013 are expected to be
minimal and one-time cash costs for 2013 are estimated to be approximately $65
million.”

Commenting on the outlook for the balance of 2013, Mr. Peribere stated, “We
continue to expect modest sales and Adjusted EBITDA growth, despite our
significant exposure to European markets and sequential escalation in raw
material costs. We have taken and will continue to take pricing actions for
those product lines impacted by escalating raw material costs. We maintain our
guidance of 2013 net sales in the range of $7.7 to 7.9 billion, Adjusted
EBITDA of $1.01 billion to $1.03 billion, and Adjusted EPS between $1.10 and
$1.20.”

Adjusted EPS guidance excludes the impact of special items. It also excludes
the payment of the W. R. Grace settlement, as the exact timing of the
settlement is unknown. Final payment of the W. R. Grace settlement is expected
to be accretive to adjusted EPS by approximately $0.13 annually following the
payment date under the assumption of using a substantial portion of cash on
hand for the payment and ceasing to accrue interest on the settlement amount.
Additionally, guidance excludes any non-operating gains or losses that may be
recognized in 2013 due to currency fluctuations in Venezuela.

Web Site and Conference Call Information

Jerome A. Peribere, Sealed Air’s President and CEO and Carol P. Lowe, Senior
Vice President and CFO, will conduct an investor conference call today at
11:00 a.m. (ET) to discuss the Company’s earnings results. The conference call
will be webcast live on the Company’s web site at www.sealedair.com in the
Investor Information section. The link to the event can be found on the
Investor Information home page as well as under the Presentations & Events
tab. Listeners should go to the web site prior to the call to register and to
download and install any necessary audio software. A replay of the webcast
will also be available on the Company’s web site.

Investors who cannot access the webcast may listen to the conference call live
via telephone by dialing (888) 680-0865 (domestic) or (617) 213-4853
(international) and use the participant code 25196790. Telephonic replay will
be available beginning today at 1:00 p.m. (ET) and ending on Thursday, June 6,
2013 at 11:59 p.m. (ET). To listen to the replay, please dial (888) 286-8010
(domestic) or (617) 801-6888 (international) and use the confirmation code
66836668.

Business

Sealed Air is a global leader in food safety and security, facility hygiene
and product protection. With widely recognized and inventive brands such as
Bubble Wrap^® brand cushioning, Cryovac^® brand food packaging solutions and
Diversey^TM brand cleaning and hygiene solutions, Sealed Air offers efficient
and sustainable solutions that create business value for customers, enhance
the quality of life for consumers and provide a cleaner and healthier
environment for future generations. Sealed Air generated revenue of
approximately $7.6 billion in 2012, and has approximately 25,000 employees who
serve customers in over 175 countries. To learn more, visit www.sealedair.com.

Non-U.S. GAAP Information

In this press release and supplement, we have included several non-U.S. GAAP
financial measures, including adjusted net earnings and EPS, net sales on a
"constant dollar" basis, adjusted gross profit, adjusted operating profit,
free cash flow and EBIT, EBITDA and Adjusted EBITDA. We present results and
guidance, adjusted to exclude the effects of certain specified items (“special
items”) that would otherwise be included under U.S. GAAP, to aid in
comparisons with other periods or prior guidance. We may use adjusted EPS, net
sales on a constant dollar basis, adjusted net earnings, adjusted gross
profit, adjusted operating profit, measures of cash flow, net debt, and EBITDA
figures to determine performance-based compensation. Our management uses
financial measures excluding the effects of foreign currency translation in
evaluating operating performance. Management believes that this information
may be useful to investors. For a reconciliation of these non-U.S. GAAP
metrics to U.S. GAAP and other important information on our use of non-U.S.
GAAP financial measures, see the attached supplementary information entitled
“Non-U.S. GAAP Free Cash Flow,” “Reconciliation of U.S. GAAP Gross Profit and
Operating Profit to Non-U.S. GAAP Adjusted Gross Profit and Operating Profit,”
“Reconciliation of U.S. GAAP Diluted Net Earnings (Loss) Per Common Share to
Non-U.S. GAAP Adjusted Diluted Net Earnings per Common Share,” “Reconciliation
of Net Earnings (Loss) to Non-U.S. GAAP Adjusted EBITDA,” “Segment and
Consolidated Adjusted Operating Profit and Adjusted EBITDA,” and “Components
of Change in Net Sales - Segments and Other.”

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by such words as “anticipates,” “believes,”
“plan,” “assumes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans
to,” “will” and similar expressions. These statements reflect our beliefs and
expectations as to future events and trends affecting our business, our
consolidated financial position and our results of operations. Examples of
these forward-looking statements include expectations regarding the potential
cash tax benefits associated with the W.R. Grace settlement, potential volume,
revenue and operating growth for future periods, expectations and assumptions
associated with our restructuring programs, availability and pricing of raw
materials, success of our growth initiatives, economic conditions, and the
success of pricing actions. A variety of factors may cause actual results to
differ materially from these expectations, including, general domestic and
international economic and political conditions; changes in our raw material
and energy costs; credit ratings; the success of restructuring plans; currency
translation and devaluation effects, including Venezuela; the competitive
environment; the effects of animal and food-related health issues;
environmental matters; and regulatory actions and legal matters. For more
extensive information, see “Risk Factors” and “Cautionary Notice Regarding
Forward-Looking Statements,” which appear in our most recent Annual Report on
Form 10-K, as filed with the Securities and Exchange Commission, and as
revised and updated by our Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. While we may elect to update these forward-looking statements at
some point in the future, we specifically disclaim any obligation to do so,
whether as a result of new information, future events, or otherwise.

^1 Developing Regions are Africa, Asia (excluding Japan and South Korea),
Central and Eastern Europe, and Latin America.

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS^(1)
(Unaudited)
(In millions, except per share data)
                                                                
                                                   Three Months Ended
                                                   March 31,
                                                   2013            2012
                                                                   Revised^(2)
Net sales                                        $ 1,852.8       $ 1,845.4
Cost of sales                                      1,234.8         1,224.3
Gross profit                                       618.0           621.1
As a % of total net sales                          33.4%           33.7%
Selling, general and administrative                437.4           444.7
expenses
As a % of total net sales                          23.6%           24.1%
Amortization expense of intangible assets          32.2            32.7
acquired
Stock appreciation rights expense^(3)              18.0            11.8
Costs related to the acquisition and               0.4             1.8
integration of Diversey
Restructuring and other (credits)                  (0.2)           47.0
charges^(4)
Operating profit                                   130.2           83.1
Interest expense                                   (90.8)          (97.3)
Foreign currency exchange losses related           (13.1)          (0.1)
to Venezuelan subsidiaries^(5)
Loss on debt redemption^(6)                        (32.3)          -
Other income (expense), net                        0.2             (4.0)
(Loss) from continuing operations before           (5.8)           (18.3)
income tax provision
Income tax (benefit)                               (8.5)           (9.9)
Effective income tax rate                          146.6%          54.1%
Net earnings (loss) from continuing                2.7             (8.4)
operations
Net earnings from discontinued                     -               2.4
operations^(2)
Net earnings (loss) available to common          $ 2.7           $ (6.0)
stockholders
                                                                    
Net earnings (loss) per common share:
Basic :
Continuing operations                            $ 0.01          $ (0.04)
Discontinued operations                            -               0.01
Net earnings (loss) per common share -           $ 0.01          $ (0.03)
basic
                                                                    
Diluted:
Continuing operations                            $ 0.01          $ (0.04)
Discontinued operations                            -               0.01
Net earnings (loss) per common share -           $ 0.01          $ (0.03)
diluted
                                                                    
Dividends per common share                       $ 0.13          $ 0.13
                                                                    
Weighted average number of common shares
outstanding:
Basic                                              193.8           191.9
Diluted^(7)                                        212.7           191.9
 

 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(2) In November 2012, we sold our Diversey Japan business. The financial
results of the Diversey Japan business are reported as discontinued
operations, net of tax, and, accordingly all previously reported financial
information has been revised.
^(3) In connection with the acquisition of Diversey in 2011, Sealed Air
exchanged Diversey's cash-settled stock appreciation rights (SARs) and stock
options that were unvested and unexercised into SARs based on Sealed Air
common stock. At March 31, 2013, the weighted average remaining vesting life
of outstanding SARs was slightly greater than one year. Since these SARs are
settled in cash, the amount of related future expense will fluctuate based on
exercise and forfeiture activity and changes in the assumptions used in the
valuation model, including the price of Sealed Air common stock. See our 2012
Annual Report on Form 10-K for further details.
^(4) These charges consist of severance and termination benefits primarily in
connection with the 2011 - 2014 Integration and Optimization Program we
initiated in December 2011 as part of the integration of the Diversey
business. We also recorded other associated costs in connection with the
program, which are included in cost of sales and selling, general and
administrative expenses. These costs were $5 million in the first quarter of
2013 and $6 million in the first quarter of 2012 and have been treated as
special items for our Adjusted Operating Profit, EBITDA and EPS measures.
^(5) In February 2013, the Venezuelan government announced a devaluation of
the Bolivar from an official exchange rate of 4.3 to 6.3 Bolivars per U.S.
dollar. Due to this devaluation, as of March 31, 2013, we remeasured our
Bolivar denominated monetary assets and liabilities using the official
exchange rate of 6.3 Bolivars per U.S. dollar. As a result, we recorded a
pre-tax loss of $13 million in the three months ended March 31, 2013 due to
this devaluation and other transaction losses and have treated this as a
special item for our Adjusted EBITDA and Adjusted EPS measures.
^(6) In March 2013, we completed an offering of $425 million aggregate
principal amount of 5.25% senior notes due 2023. Substantially all of the net
proceeds from these notes were used to repurchase $400 million aggregate
principal amount of 7.875% senior notes June 2017. The $32 million pre-tax
loss on debt redemption included above consists of a 6% premium and the
acceleration of the unamortized debt issuance costs associated with the
repurchase of the 7.875% senior notes. We have treated this item as a special
item for our Adjusted EBITDA and Adjusted EPS measures.
^(7) For 2012, basic and diluted weighted average number of common shares
outstanding were the same because the effect of the assumed issuance of 18
million shares of common stock reserved for the Settlement agreement (as
defined in our 2012 Annual Report on Form 10-K) and the effect of non-vested
stock was anti-dilutive due to the reported net loss from continuing
operations.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS^(1)
(Unaudited)
(In millions)
                                                               
                                                March 31,         December 31,
                                                2013              2012
                                                                   
Assets
Current assets:
Cash and cash equivalents                     $   625.8         $    679.6
Receivables, net                                  1,325.3            1,326.0
Inventories                                       803.9              736.4
Other current assets                              521.7              480.4    
Total current assets                              3,276.7            3,222.4
Property and equipment, net                       1,181.4            1,212.8
Goodwill                                          3,160.1            3,191.4
Intangible assets, net                            1,092.3            1,139.7
Other assets, net                                 562.8              565.4    
Total assets                                  $   9,273.3       $    9,331.7  
                                                                   
Liabilities and stockholders' equity
Current liabilities:
Short-term borrowings                         $   77.0          $    39.2
Current portion of long-term debt                 154.4              1.8
Accounts payable                                  573.9              483.8
Settlement agreement and related                  889.0              876.9
accrued interest
Other current liabilities                         819.5              931.9    
Total current liabilities                         2,513.8            2,333.6
Long-term debt, less current portion              4,376.5            4,540.8
Other liabilities                                 957.0              1,013.0  
Total liabilities                                 7,847.3            7,887.4  
Total parent company stockholders'                1,425.8            1,443.8
equity
Noncontrolling interests                          0.2                0.5      
Total stockholders' equity                        1,426.0            1,444.3  
Total liabilities and stockholders'           $   9,273.3       $    9,331.7  
equity
                                                                   
CALCULATION OF NET DEBT FROM CONTINUING OPERATIONS^(1)
(Unaudited)
(In millions)
                                                March 31,         December 31,
                                                2013              2012
                                                                   
                                                                   
Short-term borrowings                           $ 77.0            $  39.2
Current portion of long-term debt                 154.4              1.8
Settlement agreement and related                  889.0              876.9
accrued interest
Long-term debt, less current portion              4,376.5            4,540.8  
Total debt                                        5,496.9            5,458.7
Less: cash and cash equivalents                   (625.8  )          (679.6  )
Net debt                                        $ 4,871.1         $  4,779.1  
                                                                   

 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS^(1)
(Unaudited)
(In millions)
                                                                  
                                                  Three Months Ended March 31,
                                                  2013             2012
                                                                   Revised^(2)
Net earnings (loss) available to common           $  2.7           $  (8.4   )
stockholders - continuing operations
Adjustments to reconcile net earnings
(loss) to net cash provided by
operating activities - continuing                    93.3             90.5
operations^(3)
Changes in:
Receivables, net                                     (10.6   )        63.9
Inventories                                          (79.9   )        (79.7  )
Accounts payable                                     99.4             (1.5   )
Other operating assets and liabilities               (144.2  )        (158.0 )
Cash flow from operating activities -                (39.3   )        (93.2  )
continuing operations
                                                                    
Capital expenditures for property and                (25.8   )        (31.4  )
equipment
Other investing activities                           1.3              2.2     
Cash flow from investing activities -                (24.5   )        (29.2  )
continuing operations
                                                                    
Net proceeds from (payments of) long-term            34.7             (27.2  )
debt and short-term borrowings
Dividends paid on common stock                       (25.4   )        (25.2  )
Payments of debt issuance costs                      (33.9   )        -
Other financing activities                           (4.4    )        (9.2   )
Cash flow from financing activities -                (29.0   )        (61.6  )
continuing operations
                                                                    
Cash flow from discontinued operations               -                2.7     
                                                                    
Effect of foreign currency exchange rates            39.0             3.9     
on cash and cash equivalents
                                                                    
Cash and cash equivalents beginning of            $  679.6         $  703.6
period
Change in cash and cash equivalents                  (53.8   )        (177.4 )
Cash and cash equivalents end of period           $  625.8         $  526.2   
                                                                    
Non-U.S. GAAP Free Cash Flow:
Cash flow from operating activities -             $  (39.3   )     $  (93.2  )
continuing operations
Capital expenditures for property and                (25.8   )        (31.4  )
equipment
Free Cash Flow^(4)                                $  (65.1   )     $  (124.6 )
                                                                    
Additional Cash Flow Information:
Interest payments, net of amounts                 $  109.9         $  115.1   
capitalized
Income tax payments                               $  32.4          $  25.0    
Restructuring payments                            $  19.1          $  26.2    
 

 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(2) In November 2012, we sold our Diversey Japan business. The financial
results of the Diversey Japan business are reported as discontinued
operations, and, accordingly, all previously reported financial information
has been revised.
^(3) 2013 primarily consists of depreciation and amortization of $81 million,
loss on debt redemption of $32 million and profit sharing expense of $10
million, partially offset by deferred taxes, net of $(39) million. 2012
primarily consists of depreciation and amortization expense of $85 million.
^(4) Free cash flow does not represent residual cash available for
discretionary expenditures, including mandatory debt servicing requirements or
non-discretionary expenditures that are not deducted from this measure.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
RECONCILIATION OF U.S. GAAP GROSS PROFIT AND OPERATING PROFIT TO
NON-U.S. GAAP ADJUSTED GROSS PROFIT AND OPERATING PROFIT^(1)
(Unaudited)
(In millions)
                                                                
                                                       Three Months Ended
                                                       March 31,
                                                       2013        2012
                                                                   Revised^(2)
U.S. GAAP gross profit - continuing operations       $ 618.0     $ 621.1
As a % of total net sales                              33.4%       33.7%
Special items^(3)                                      1.4         7.9
As a % of total net sales                                           
Non-U.S. GAAP adjusted gross profit -                $ 619.4     $ 629.0
continuing operations
                                                       33.4%       34.1%
                                                                    
U.S. GAAP operating profit - continuing              $ 130.2     $ 83.1
operations
As a % of total net sales                              7.0%        4.5%
                                                                    
Special items^(3)                                      5.9         62.1
                                                                    
Non-U.S. GAAP adjusted operating profit -            $ 136.1     $ 145.2
continuing operations
As a % of total net sales                              7.3%        7.9%
 

 
^(1 )The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(2) In November 2012, we sold our Diversey Japan business. The financial
results of the Diversey Japan business are reported as discontinued
operations, and, accordingly all previously reported financial information has
been revised.
^(3) These items primarily consist of restructuring and other costs associated
with our 2011 - 2014 Integration and Optimization program. These items are not
part of our ongoing business and are not expected to have a continuing impact
on our consolidated results.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
RECONCILIATION OF U.S. GAAP DILUTED NET EARNINGS (LOSS) PER COMMON SHARE TO
NON-U.S. GAAP ADJUSTED DILUTED NET
EARNINGS PER COMMON SHARE^(1)
(Unaudited)
(In millions, except per share data)
                                                                    
                                                                              
                                                                              
                                                                              
                               Three Months Ended March 31,
                               2013                      2012
                                                         Revised^(2)
                               Net         Diluted       Net         Diluted
                               Earnings    EPS           Earnings    EPS
U.S. GAAP Net Earnings
(Loss) and EPS -             $ 2.7     $   0.01        $ (8.4)   $   (0.04)   
continuing operations
                                                                              
Special items^(3)              34.0        0.16          42.5        0.20     
                                                                              
Non- U.S. GAAP Adjusted
Net Earnings and EPS -       $ 36.7    $   0.17        $ 34.1    $   0.16     
continuing operations
                                                                              
Weighted average number
of common shares                           212.7                     210.2    
outstanding - Diluted
^(4)
                                                                              
                                                                              
Our U.S. GAAP and
Non-U.S. GAAP income
taxes are as
follows:^(5)
                               Three Months Ended March 31,
                               2013                      2012
                               (Benefit)   Effective     (Benefit)   Effective
                               Provision   Tax Rate      Provision   Tax Rate
U.S. GAAP                    $ (8.5)       146.6   %   $ (9.9)       54.1    %
Non-U.S. GAAP (Core          $ 8.8         19.4    %   $ 9.8         22.3    %
Taxes)
 

 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(2) In November 2012, we sold our Diversey Japan business. The financial
results of the Diversey Japan business are reported as discontinued
operations, and, accordingly all previously reported financial information has
been revised.
^(3) For 2013, this amount includes loss on debt redemption of $32 million
($20 million, net of taxes), foreign currency exchange loss related to
Venezuelan subsidiaries of $13 million ($11 million, net of taxes) and
associated costs of $5 million ($3 million, net of taxes) related to our
2011-2014 Integration and Optimization Program. For 2012, this amount
primarily includes restructuring and other charges of $47 million ($32
million, net of taxes) and associated costs of $6 million ($4 million, net of
taxes), both related to our 2011-2014 Integration and Optimization Program,
non-recurring associated costs from Legacy Diversey restructuring programs of
$8 million ($5 million, net of taxes) and costs related to the acquisition and
integration of Diversey of $2 million ($1 million, net of taxes).
^(4) For 2012, for purposes of calculating Adjusted EPS, the dilutive impact
of: (i) the effect of the assumed issuance of 18 million shares of common
stock reserved for the Settlement agreement and (ii) the effect of non-vested
restricted stock and restricted stock units using the treasury stock method
was included because we reported adjusted net earnings for 2012. These shares
differ from the shares used to calculate net loss per common share included in
the condensed consolidated statement of operations for U.S. GAAP reporting
purposes because we reported a net loss for 2012, which does not include the
effect of the items mentioned above as the effect was anti-dilutive.
^(5) Our core taxes represents the tax provision or benefit after adjusting
for the tax impact of special items.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
RECONCILIATION OF U.S. GAAP NET EARNINGS (LOSS) TO NON-U.S. GAAP ADJUSTED
EBITDA^(1) (2)
(Unaudited)
(In millions)
                                                                  
                                                  Three Months Ended March 31,
                                                  2013             2012
                                                                   Revised^(3)
Net earnings (loss) from continuing               $  2.7           $  (8.4   )
operations
Interest expense                                     90.8             97.3
Income tax (benefit)                                 (8.5   )         (9.9   )
Non-U.S. GAAP EBIT- continuing operations         $  85.0          $  79.0
Depreciation and amortization                        80.5             84.5    
Non-U.S. GAAP EBITDA - continuing                 $  165.5         $  163.5
operations
Non-cash profit sharing expense                      9.9              7.8
Special items^(4)                                    51.4             57.0    
Non-U.S. GAAP Adjusted EBITDA - continuing        $  226.8         $  228.3   
operations
As a % of net sales                                  12.2   %         12.4   %
 

                                                                 
^(1) EBITDA is defined as Earnings Before Interest Expense
Taxes and Depreciation and Amortization.
^(2) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(3) In November 2012, we sold our Diversey Japan business. The financial
results of the Diversey Japan business are reported as discontinued
operations, and, accordingly, all previously reported financial information
has been revised.
^(4) For 2013, this amount primarily includes loss on debt redemption of $32
million, foreign currency exchange loss related to Venezuelan subsidiaries of
$13 million and associated costs of $5 million related to our 2011-2014
Integration and Optimization Program. For 2012, this amount primarily includes
restructuring and other charges of $47 million and associated costs of $6
million, both related to our 2011-2014 Integration and Optimization Program,
and costs related to the acquisition and integration of Diversey of $2
million.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
U.S. GAAP SEGMENT INFORMATION^(1)
(Unaudited)
(In millions)
                                                                  
                                                                              
                                                     Three Months Ended
                                                     March 31,
                                                     2013            2012
Net sales:
Food & Beverage                                    $ 902.5         $ 895.1
As a % of net sales                                  48.7    %       48.5    %
                                                                              
Institutional & Laundry                              512.9           510.2
As a % of net sales                                  27.7    %       27.7    %
                                                                              
Protective Packaging                                 386.6           391.3
As a % of net sales                                  20.9    %       21.2    %
                                                                              
Other Category: Medical Applications                 50.8            48.8
business and New Ventures
As a % of net sales                                  2.7     %       2.6     %
                                                                      
Total                                              $ 1,852.8       $ 1,845.4
                                                                              
Operating profit:
Food & Beverage                                    $ 92.8          $ 82.3
As a % of Food & Beverage net sales                  10.3    %       9.2     %
                                                                              
Institutional & Laundry                              (8.5)           (0.7)
As a % of Institutional & Laundry net sales          (1.7)   %       (0.1)   %
                                                                              
Protective Packaging                                 46.7            50.9
As a % of Protective Packaging net sales             12.1    %       13.0    %
                                                                              
Other Category: Medical Applications                 (0.6)           (0.6)
business and New Ventures
As a % of Medical Applications and New               (1.2)   %       (1.2)   %
Ventures net sales
                                                                      
Total segments and other category                    130.4           131.9
As a % of total net sales                            7.0     %       7.1     %
                                                                              
Costs related to the acquisition and                 0.4             1.8
integration of Diversey
                                                                              
Restructuring and other (credits) charges            (0.2)           47.0
                                                                      
Total                                              $ 130.2         $ 83.1
As a % of total net sales                            7.0     %       4.5     %
 

 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
SEGMENT AND CONSOLIDATED ADJUSTED OPERATING PROFIT AND ADJUSTED EBITDA^(1)
(Unaudited)
(In millions)
                                                                                       
                  Three Months Ended March 31, 2013
                                                                     Medical
                    Food &          Institutional     Protective     Applications     Total
                    Beverage        & Laundry         Packaging      and New
                                                                     Ventures
                                                                                       
                                                                                       
Adjusted
Operating           $ 96.8          $  (7.6  )        $ 47.4         $  (0.5  )       $ 136.1  
Profit^(2)
as a % of net         10.7  %          -1.5  %          12.3 %          -1.0  %         7.3   %
sales
                                                                                       
Adjusted            $ 130.9         $  26.2           $ 57.6         $  2.4           $ 217.1  
EBITDA^(2)
as a % of net         14.5  %          5.1   %          14.9 %          4.7   %         11.7  %
sales
SARs                $ 4.8           $  13.2           $ -            $  -             $ 18.0   
expense^(2)
                                                                                       
                                                                                       
Reconciliation of Segment Adjusted EBITDA to
Consolidated Adjusted EBITDA:
Total Segment                                                                         $ 217.1
Adjusted EBITDA
Non-cash profit                                                                         9.9
sharing expense
Other
income/expense,                                                                         (0.2  )
net of special
items
Consolidated                                                                          $ 226.8  
Adjusted EBITDA
as a % of net                                                                           12.2  %
sales
                                                                                       
                  Three Months Ended March 31, 2012
                                                                     Medical
                    Food &          Institutional     Protective     Applications     Total
                    Beverage        & Laundry         Packaging      and New
                                                                     Ventures
                                                                                       
Adjusted
Operating           $ 89.9          $  4.8            $ 51.1         $  (0.6  )       $ 145.2  
Profit^(2)
as a % of net         10.0  %          0.9   %          13.1 %          -1.2  %         7.9   %
sales
                                                                                       
Adjusted            $ 125.8         $  35.5           $ 60.4         $  2.6           $ 224.3  
EBITDA^(2)
as a % of net         14.1  %          7.0   %          15.4 %          5.3   %         12.2  %
sales
SARs                $ 2.7           $  9.1            $ -            $  -             $ 11.8   
expense^(2)
                                                                                       
                                                                                       
Reconciliation of Segment Adjusted EBITDA to
Consolidated Adjusted EBITDA:
Total Segment                                                                         $ 224.3
Adjusted EBITDA
Non-cash profit                                                                         7.8
sharing expense
Other
income/expense,                                                                         (3.8  )
net of special
items
Consolidated                                                                          $ 228.3  
Adjusted EBITDA
as a % of net                                                                           12.4  %
sales
 

 
 
^(1) The supplementary information included in this press release for 2013 is
preliminary and subject to change prior to the filing of our upcoming
Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
^(2) Excluding the impact of SARs expense, our Adjusted Operating Profit,
Adjusted EBITDA and Adjusted EPS results were the following. SARs expense did
not impact our PP segment or Other Category.
 

 
                        Three Months           Three Months     Increase
                        Ended                  Ended
                        March 31, 2013         March 31,        (Decrease)
                                               2012
Adjusted
Operating Profit:
F&B                     $   101.6              $  92.6          9.7        %
as a % of net               11.3    %             10.3   %      100        bps
sales
I&L                     $   5.6                $  13.9          (59.7   )  %
as a % of net               1.1     %             2.7    %      (160    )  bps
sales
Consolidated            $   154.1              $  157.0         (1.8    )  %
as a % of net               8.3     %             8.5    %      (20     )  bps
sales
                                                                            
Adjusted EBITDA:
F&B                     $   135.7              $  128.5         5.6        %
as a % of net               15.0    %             14.4   %      60         bps
sales
I&L                     $   39.4               $  44.6          (11.7   )  %
as a % of net               7.7     %             8.7    %      (100    )  bps
sales
Consolidated            $   244.8              $  240.1         2.0        %
as a % of net               13.2    %             13.0   %      20         bps
sales
                                                                            
Adjusted EPS:
Adjusted EPS            $   0.17               $  0.16          6.3     %
Impact of SARs              0.07                  0.04    
Adjusted EPS
excluding the           $   0.24               $  0.20          20.0    %   
impact of SARs
 

 
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
COMPONENTS OF CHANGE IN NET SALES - SEGMENTS AND OTHER^(1)
(Unaudited)
(In millions)
                                                                                                                               
                  Three Months Ended March 31, 2013
                  Food &                    Institutional              Protective              Medical            Total
                  Beverage                  & Laundry                  Packaging               Applications &     Company
                                                                                               New Ventures
Volume -          $ 16.5       1.8    %     $ 0.7        0.1    %      $ 0.3        0.1    %   $ 1.2     2.5 %    $ 18.7        1.0    %
Units
Product
price/mix           0.6        0.1            5.3        1.1             (3.6 )     (0.9 )       0.8     1.6        3.1         0.2
^(2)
Foreign
currency            (9.7 )     (1.1 )         (3.3 )     (0.7 )          (1.4 )     (0.4 )       -       -          (14.4 )     (0.8 )
translation
Total
change            $ 7.4        0.8    %     $ 2.7        0.5    %      $ (4.7 )     (1.2 ) %   $ 2.0     4.1 %    $ 7.4         0.4    %
(U.S. GAAP)
                                                                                                                                        
Impact of
foreign           $ 9.7        1.1    %     $ 3.3        0.7    %      $ 1.4        0.4    %   $ -       -   %    $ 14.4        0.8    %
currency
translation
Total
constant
dollar            $ 17.1       1.9    %     $ 6.0        1.2    %      $ (3.3 )     (0.8 ) %   $ 2.0     4.1 %    $ 21.8        1.2    %
change
(Non-U.S.
GAAP)^(3)
                                             

                                                                
^(1) The results above are presented on a continuing
operations basis, excluding Diversey Japan, which we sold in
November 2012.
^(2) Our product price/mix reported above includes the net impact of our
pricing actions and rebates as well as the period-to-period change in the mix
of products sold. Also included in our reported product price/mix is the net
effect of some of our customers purchasing our products in non-U.S. dollar or
euro denominated countries at selling prices denominated in U.S. dollars or
euros. This primarily arises when we export products from the U.S. and
euro-zone countries. The impact to our reported product price/mix of these
purchases in other countries at selling prices denominated in U.S. dollars or
euros was not material in the periods included in the tables above.
^(3) Changes in these items excluding the impact of foreign currency
translation are non-U.S. GAAP financial measures. Since we are a U.S.
domiciled company, we translate our foreign-currency-denominated financial
results into U.S. dollars. Due to changes in the value of foreign currencies
relative to the U.S. dollar, translating our financial results from foreign
currencies to U.S. dollars may result in a favorable or unfavorable impact. It
is important that we take into account the effects of foreign currency
translation when we view our results and plan our strategies. Nonetheless, we
cannot control changes in foreign currency exchange rates. Consequently, when
our management looks at our financial results to measure the core performance
of our business, we exclude the impact of foreign currency translation by
translating our current period results at prior period foreign currency
exchange rates. We also may exclude the impact of foreign currency translation
when making incentive compensation determinations. As a result, our management
believes that these presentations are useful internally and may be useful to
our investors.
 

                                                                                    
SUPPLEMENTARY INFORMATION
COMPONENTS OF CHANGE IN NET SALES - GEOGRAPHIC^(1)
Unaudited
(In millions)
                                                                                                
                  Three Months Ended March 31, 2013
                                                                                                
                                                                        Japan,
                  North        Europe        Latin         AMAT^(2)     Australia    Total
                  America                    America                    & New
                                                                        Zealand
Change in
Net Sales
Volume -          $ 2.7        $ (15.0 )     $ 16.6        $ 12.5       $ 1.9        $ 18.7
Units
% change            0.4    %     (2.4  ) %     8.9     %     6.8    %     1.3    %     1.0     %
Product             (1.5 )       (0.3  )       5.7           2.1          (2.9 )       3.1
price/mix
% change            (0.2 ) %     -       %     3.0     %     1.2    %     (1.9 ) %     0.2     %
Foreign
currency            0.1          1.7           (12.2 )       (1.6 )       (2.4 )       (14.4 )
translation
% change            -      %     0.3     %     (6.5  ) %     (0.9 ) %     (1.7 ) %     (0.8  ) %
Total             $ 1.3        $ (13.6 )     $ 10.1        $ 13.0       $ (3.4 )     $ 7.4    
% change            0.2    %     (2.1  ) %     5.4     %     7.1    %     (2.3 ) %     0.4     %
                                                                                                
Impact of
foreign           $ (0.1 )     $ (1.7  )     $ 12.2        $ 1.6        $ 2.4        $ 14.4   
currency
translation
Total
constant
dollar            $ 1.2        $ (15.3 )     $ 22.3        $ 14.6       $ (1.0 )     $ 21.8   
change
(Non-U.S.
GAAP)
Constant
dollar %            0.2    %     (2.4  ) %     11.9    %     8.0    %     (0.6 ) %     1.2     %
change
                                                                                                

 
^(1) The results above are presented on a continuing operations basis,
excluding Diversey Japan, which we sold in November 2012.
^(2) AMAT = Asia, Middle East, Africa and Turkey.
 

Contact:

Sealed Air Corporation
Bill Thomas, 201-791-7600
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement