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Press Release: Berry Global Group, Inc. Reports -4-

· 02/05/2021 07:30
CONTACT: Company Contact:(3) 68 68 275 --- --------- --------- --------- Operating EBITDA (6) $ 539 $ 451 $ 2,245 === ========= ========= ========= Add: unrealized synergies and divestiture (4) 11 --------- Adjusted EBITDA (6) $ 2,256 ========= Cash flow from operating activities $ 315 $ 218 $ 1,627 Net additions to property, plant, and equipment (162) (148) (597) --- --------- --------- --------- Free cash flow (6) $ 153 $ 70 $ 1,030 === ========= ========= ========= Net income per diluted share $ 0.96 $ 0.35 Other expense, net 0.18 0.10 Non-cash amortization from 2006 private sale 0.04 0.05 Restructuring and transaction activities (0.01) 0.13 Income tax impact on items above (5) (0.05) (0.07) --- --------- --------- Adjusted net income per diluted share (6) $ 1.12 $ 0.56 === ========= ========= Estimated Fiscal 2021 --------------- Cash flow from operating activities $1,525 - $1,625 Additions to property, plant, and equipment (650) --------------- Free cash flow (6) $875 - $975 =============== (1) The current quarter primarily includes a gain from the divestment of our U.S. flexible packaging converting business partially offset by transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes transaction activity costs related to the RPC acquisition. The four quarters ended January 2, 2021, primarily includes a gain from the divestment of our U.S. flexible packaging converting business partially offset by restructuring and transaction costs related to the RPC acquisition. (2) Other non-cash charges for the December 2020 and December 2019 quarters primarily include stock compensation expense of $21 million and $19 million, respectively. Other non-cash charges for the four quarters ended January 2, 2021, primarily includes $35 million of stock compensation expense and a $19 million inventory step-up related to the RPC acquisition. (3) Amortization excludes non-cash amortization from the 2006 private sale of $6 million, $7 million, and $25 million, for the December 2020 quarter, December 2019 quarter, and four quarters ended January 2, 2021, respectively. (4) Represents unrealized cost savings related to the RPC acquisition partially offset by earnings related to divestment of our U.S. flexible packaging converting business. (5) Income tax effects on adjusted net income is calculated using 25 percent for both the December 2020 and December 2019 quarters. The rates used represents the Company's expected effective tax rate for each respective period. (6) 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210205005045/en/

Dustin Stilwell, Head of Investor Relations

+1 (812) 306 2964

ir@berryglobal.com

(END) Dow Jones Newswires

February 05, 2021 07:30 ET (12:30 GMT)