Sealed Air Corp : Sealed Air Reports First Quarter 2012 Results
05/03/2012| 07:35am US/Eastern
Recommend:
Highlights
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Record 1Q sales of $1.92 billion, a 70% increase including
acquisitions and 4% organic sales growth
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Diversey integration plan on track with full year synergies increased
to $70 million in 2012
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1Q cost synergies of $15 million
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1Q adjusted EBITDA pacing within plan
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Maintaining full year adjusted EBITDA and net debt targets
For first quarter 2012, Sealed Air Corporation (NYSE:SEE) reported a
loss per common share of $0.03 after a $0.21 per share effect from
special items. On an adjusted basis, first quarter 2012 diluted net
earnings per common share (EPS) was $0.18 compared with reported and
adjusted EPS of $0.34 in 2011. (See attached supplements for non-U.S.
GAAP reconciliations and information.)
Reported sales increased 70% to $1.92 billion from a 66% increase
related to the Diversey acquisition, 2% higher price/mix and 2% from
higher volumes. Pro forma results for certain metrics have been provided
in this release and in the attached supplemental financial tables to aid
in the comparison of our performance to historical combined financial
metrics of Sealed Air and Diversey.
On a pro forma basis, sales increased 1%, or 3% on a constant dollar
basis, reflecting growth in all businesses and regions. This included a
modest increase in year-over-year results in North America and the
Europe, Middle East and Africa (EMEA) region, and a 9% increase in
developing regions.
Consolidated operating profit results:
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($ millions)
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Reported
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Adjusted
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2012
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$88
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$151
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% of net sales
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4.6%
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7.9%
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Pro Forma 2011
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$136
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$144
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% of net sales
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7.2%
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7.6%
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The 5% increase in 2012 pro forma adjusted operating profit includes an
estimated $15 million in cost synergies from the 2011-2014 Optimization
& Integration Program achieved in the quarter and largely attributed to
the Diversey segment. These synergies helped offset lower volumes
primarily from European economic weakness and unfavorable mix in the
Diversey segment. Adjusted EBITDA was $236 million, or 12.3% of net
sales in the quarter, which held steady compared with pro forma 2011
adjusted EBITDA of $236 million, or 12.5% of pro forma net sales.
Commenting on our operating performance, William V. Hickey, President
and Chief Executive Officer, stated:
"We remain on track toward achieving our 2012 adjusted EBITDA and
year-end net debt targets despite the uncertainty of the European
economy and the uneven recovery in the U.S. We are confident in the cost
synergies with Diversey with increased cost synergy estimates in 2012
and future years, and we believe our vision is beginning to resonate
with our customer base.
We are quite pleased with the overall performance of our Food and
Protective Packaging business segments, which achieved both volume and
price/mix growth during the quarter. Diversey segment sales were less
than planned in the quarter due to ongoing weakness in Europe and the
timing of specific customer orders in North America. We expect to see a
more normalized order pattern in North America in that segment through
the balance of the year. While we remain cautious about any European
economic improvement, we are encouraged by high single-digit percent
sales growth in developing regions and strong customer reception of our
solutions resulting from our growth programs. We have built a strong
foundation for growth across all of our businesses when Europe does
recover."
First Quarter Segment Review
The following year-over-year net sales discussions present both actual
and constant dollar sales performance. The "constant dollar" results
exclude the impact of currency translation. Additionally, "adjusted
operating profit" results exclude restructuring and special items, but
include the impact of all amortized intangibles associated with purchase
accounting. The balance of the discussion is presented on a U.S. GAAP
basis. See "Components of Change in Net Sales - Business Segments and
Other," for further details.
Food Packaging Segment
Sales increased 3% on a reported and constant dollar basis, with 2%
higher price/mix largely from prior North and Latin American pricing
actions. Volumes increased 1% from 6% growth in Australia/New Zealand
and a 3% increase in EMEA. North American volumes decreased 2% due to
lower customer production rates and the unfavorable effect of a customer
loss that we previously reported. Operating profit decreased 4% to $60
million, or 12.3% of net sales, due to $5 million in charges relating to
a plant closing. On an adjusted basis, operating profit increased to $65
million, or 13.4% of net sales, compared with 13.2% of net sales in 2011.
Food Solutions Segment
Sales increased 4% on a reported and constant dollar basis, with 3%
higher price/mix and 1% higher volumes. Price/mix and volume growth
reflected a 7% increase in constant dollar sales in North America and
Australia/New Zealand, aided by challenging prior year market
conditions, and steady EMEA constant dollar sales performance. Reported
and adjusted operating profit increased 37% to $27 million, or 11.2% of
net sales, compared with 8.5% in 2011 due to solid raw material cost
recovery through pricing actions and favorable product mix.
Protective Packaging Segment
Sales increased 3%, or 4% on a constant dollar basis, with 3% higher
volumes. We achieved 5% higher volumes in North America due to the
ongoing gradual economic recovery in the region, solid demand for
e-commerce-oriented solutions, and strong demand for our new solutions.
EMEA volumes declined 3% due to economic weakness in southern Europe.
Price/mix increased 1% due to prior pricing actions in all regions.
Reported and adjusted operating profit increased 16% to $47 million, or
13.5% of net sales, compared with 11.9% in 2011.
Diversey Segment (includes pro forma information for 2011
results)
Reported sales decreased 2% to $751 million in the quarter, which would
have compared to $764 million in 2011. On a constant dollar basis, first
quarter 2012 sales were $767 million, which was slightly above last
year. These sales results reflect an estimated 3% higher price and 2%
lower volumes primarily in North America and in EMEA, specifically in
Europe. Operating profit was $1 million in the quarter, which compares
with $13 million in 2011. On an adjusted basis, operating profit was $8
million, or 1.1% of net sales, which compares with $21 million or 2.7%
of net sales in 2011. Adjusted operating profit in 2012 was reduced by
approximately $16 million due to the lower volumes noted above and
unfavorable product mix.
Other Category
Sales increased 6%, or 7% on a constant dollar basis, with 5% higher
volumes, 1% higher price/mix and 1% from an acquisition. Volume grew in
our Asia Pacific Medical Applications business and in our Specialty
Materials business in North America and Asia Pacific. Price/mix growth
was largely in our North American and EMEA regions for both our
Specialty Materials and Medical Applications businesses. Reported and
adjusted operating profit increased to $4 million, or 3.9% of net sales.
Other Matters
Effective Tax Rate
In the quarter, our $14.4 million pretax loss was reduced to a $6
million net loss due to an $8.4 million tax benefit. The tax benefit
resulted from a favorable mix of earnings and losses reflecting losses
and special item charges in jurisdictions with high tax rates and
earnings in other jurisdictions with low tax rates. In addition, during
the quarter we reached favorable settlements on certain tax disputes.
Our core tax rate was 23.4% in the first quarter due to the factors
noted above.
Net Debt
We prepaid our first quarter 2013 term loan installments of $31 million
during the first quarter. Our net debt increased by approximately $173
million to $5.33 billion, including the W. R. Grace settlement payable,
due to higher seasonal uses of cash and an increase in inventory levels
ahead of our launch of the European principal company structure on May
3, 2012. We continue to expect to achieve our year-end 2012
target net debt level of approximately $4.9 billion.
Synergies and 2011-2014 Integration &
Optimization Program
We announced our 2011-2014 Integration & Optimization Program in the
fourth quarter of 2011. As part of our integration of Diversey, we are
undertaking a number of actions to integrate and realign our
organization, further improve operating efficiencies and lower our
overall cost structure to maximize cost synergies and better meet
customers' needs.
We have increased the expected cost synergies for the program in 2012
and through 2014 due to both newly identified opportunities and our
ability to accelerate the timing of our program. These additional
benefits reflect added savings from our existing integration initiatives
in supply chain, as well as in administrative functions that benefit
from the transition to our new business unit structure and the
elimination of duplicate roles. We expect the cost synergies to be
realized equally in Cost of Sales and in SG&A. We expect to recognize
substantially all of the restructuring costs in 2012 although the
associated costs will continue through 2014.
The 2011-2014 Integration & Optimization Program is now summarized as:
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($ millions)
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Quarter
Ended
3/31/12
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Cumulative
through
3/31/12
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Previous
FY 2012
Guidance
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Updated
FY 2012
Guidance
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Previous
2011-2014
Guidance
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Updated
2011-2014
Guidance
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Capital
Expenditures
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$1
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$1
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$20
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$20
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$40-$50
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$40-$50
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Associated Costs
& Restructuring
Charges
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$53
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$106
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n/a
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n/a
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$165-$185
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$180-$200
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Cash Payments
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$26
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$55
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$100
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$115
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$165
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$180
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Cost Synergies
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$15*
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$15
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$50
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$70
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$110-$115
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$125-$130
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*Cost synergies in 1Q/2012 were largely attributed to the Diversey
segment.
We expect to achieve the cost synergy savings as follows:
2012: $70 million;
2013: incremental $45 million, to achieve annual
savings of $115 million in 2013; and
2014: incremental $10 to $15
million, to achieve annual savings of $125 to $130 million in 2014.
The actual timing of future costs and cash payments are subject to
change due to a variety of factors that may cause a portion of the
spending and benefits to occur later than we now expect. Additionally,
changes in foreign exchange translation may impact future costs and
benefits.
Revenue Synergies
We continue to target a $70 million revenue synergy by the end of 2013,
largely from expanded access and presence within our food and beverage
processing customers' businesses and our broader reach in developing
regions. In the first quarter, we continued to secure new, smaller
accounts, which resulted in an estimated annualized synergy revenue of
less than $10 million, while we continued our efforts to close
additional opportunities with medium- and larger-sized customers.
2012 Outlook
Commenting on our outlook, Mr. Hickey stated:
"We are maintaining our full year 2012 Adjusted EBITDA target of
approximately $1.2 billion, our Free Cash Flow range of $450 to $475
million, and our Net Debt target of approximately $4.9 billion. We are
also maintaining our Adjusted EPS guidance range of $1.50 to $1.60 and
Cash EPS range of $2.10 to $2.20. While we remain cautious about any
meaningful economic improvement in Europe this year, we have enough
positive momentum and capacity elsewhere in our business to achieve our
full year targets.
We anticipate that our net sales will be at the lower end of our initial
guidance range of $8.2 to $8.3 billion due to European economic
conditions. Our business continues to demonstrate organic growth through
innovation, developing region expansion, and strong fundamentals in our
Food and Protective Packaging business segments. We expect to achieve
our 2012 goals through these strengths, combined with increasing price
benefits, continued economic recovery in other regions, a lower core tax
rate and higher cost synergies."
The following full year guidance assumptions have been revised:
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2012 net sales to be at the lower end of our $8.2 to $8.3 billion
range;
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2012 cost synergies of $70 million, compared with our original
guidance of $50 million - still to be equally recognized in cost of
sales and SG&A;
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Amortization of non-cash compensation of $55 million compared with our
initial guidance of $25 million. The increase is due to payment of our
U.S. profit sharing contribution in shares rather than cash, which
allows us to prioritize cash flow to debt reduction; and
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Our core tax rate is now expected to be 27% compared with our initial
guidance of 30%.
Our full year 2012 guidance assumptions outlined in our fourth quarter
2011 earnings release related to the unfavorable impact from foreign
currency translation, cost of sales and SG&A as a percent of net sales,
depreciation and amortization, interest expense, capital expenditures,
free cash flow, net debt and our full year average fully diluted common
share count have not changed.
Our adjusted EPS guidance 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 2012 due to currency fluctuations in Venezuela.
Web Site and Conference Call Information
William V. Hickey, our CEO, and Tod S. Christie, our Treasurer and
Interim CFO, will conduct an investor conference call today at 10:00
a.m. (ET) to discuss our earnings results. The conference call will be
webcast live on our 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) 679-8037 (domestic) or (617)
213-4849 (international) and use the participant code 97741165#.
Telephonic replay will be available beginning today at 12:00 p.m. (ET)
and ending on Thursday, May 24, 2012 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 29364832.
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 DiverseyTM 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. On a pro forma basis, Sealed Air generated
revenue of $8.1 billion in 2011, and has approximately 26,300 employees
who serve customers in 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 EPS, adjusted Cash EPS, net
sales on a "constant dollar" basis, adjusted gross profit, adjusted
operating profit, adjusted net earnings, free cash flow and EBIT, EBITDA
and Adjusted EBITDA. We present results and guidance, adjusted to
eliminate the effects of specified 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, 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 important information on our use of non-U.S.
GAAP financial measures, see the attached supplementary information
entitled "Explanatory Note on Use of Non-U.S. GAAP Financial
Information," "Reconciliation of U.S. GAAP Diluted Net Earnings per
Common Share to Non-U.S. GAAP Adjusted Diluted Net Earnings per Common
Share," "Reconciliation of U.S. GAAP Gross Profit and Operating Profit
to Non-U.S. GAAP Adjusted Gross Profit and Operating Profit," "Non-U.S.
GAAP Free Cash Flow," "Reconciliation of Net Earnings Available to
Common Stockholders to Non-U.S. GAAP EBIT, EBITDA and Adjusted EBITDA,"
"Components of Change in Net Sales - Business Segments and Other" and
"Percentage Changes in Net Sales by Geographic Region."
Forward-Looking Statements
This press release and supplement contain "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.
Examples of these forward-looking statements include preliminary 2012
financial performance and expectations and assumptions associated with
our 2011-2014 Integration & Optimization Program, availability and
pricing of raw materials, success of our growth programs, economic
conditions, and the success of pricing actions. 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. A variety of factors may cause actual results to differ
materially from these expectations, including general domestic and
international economic and political conditions affecting packaging
utilization; changes in our raw material and energy costs; credit
ratings; competitive conditions and contract terms; currency translation
and devaluation effects, including Venezuela; the success of our
financial growth, profitability and manufacturing strategies and our
cost reduction and productivity efforts; the effects of animal and
food-related health issues; pandemics; environmental matters; regulatory
actions and legal matters; and the successful integration of Diversey.
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.
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SEALED AIR CORPORATION
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SUPPLEMENTARY INFORMATION(1)
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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(In millions, except per share data)
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Three Months Ended
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March 31,
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%
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2012
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2011
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Change
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Net sales:
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Food Packaging
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$
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488.2
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$
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474.9
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3
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%
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Food Solutions
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238.2
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228.8
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4
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Protective Packaging
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345.6
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335.1
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3
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Diversey
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750.9
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-
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#
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Other
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94.6
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89.7
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5
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Total net sales
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1,917.5
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1,128.5
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70
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Cost of sales
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1,267.8
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819.5
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55
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Gross profit
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649.7
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309.0
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#
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As a % of total net sales
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33.9
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%
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27.4
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%
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Marketing, administrative and development expenses
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478.1
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183.5
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#
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As a % of total net sales
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24.9
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%
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16.3
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%
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Amortization expense of intangible assets acquired
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34.2
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2.5
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#
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Costs related to the acquisition of Diversey
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1.8
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-
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#
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Restructuring and other charges(2)
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48.1
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-
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#
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Operating profit
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87.5
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123.0
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(29
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)
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As a % of total net sales
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4.6
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%
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10.9
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%
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Interest expense(3)
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(97.8
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)
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(37.0
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)
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#
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Foreign currency exchange losses related to Venezuelan subsidiary
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-
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(0.2
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)
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#
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Other expense, net
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(4.1
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)
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(3.9
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)
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5
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(Loss) earnings before income tax provision
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(14.4
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)
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81.9
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#
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Income tax (benefit) provision(4)
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(8.4
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)
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22.2
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#
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Effective income tax rate
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58.3
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%
|
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27.1
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%
|
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Net (loss) earnings available to common stockholders
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$
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(6.0
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)
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$
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59.7
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#
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As a % of total net sales
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-0.3
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%
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5.3
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%
|
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Net (loss) earnings per common share:
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Basic
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$
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(0.03
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)
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$
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0.37
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#
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Diluted
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$
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(0.03
|
)
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$
|
0.34
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#
|
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Dividends per common share
|
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$
|
0.13
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$
|
0.13
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-
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%
|
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Weighted average number of common shares outstanding:
|
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Basic
|
|
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191.9
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158.7
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Diluted
|
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191.9
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|
176.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# Denotes a variance greater than 100%, or not meaningful.
|
|
|
(1) The condensed consolidated financial statements and
supplementary information included in this press release include
the financial results of Diversey Holdings, Inc. ("Diversey") for
the period beginning January 1, 2012 through March 31, 2012 and as
of December 31, 2011 for the condensed consolidated balance sheet.
The financial results included in this press release related to
the acquisition accounting for the Diversey transaction are
subject to change as the acquisition accounting is not yet
finalized and dependent upon certain independent valuations and
studies that are still in process and under review by management.
As a result, there may be material adjustments made to the
financial results presented in this press release.
|
|
(2) In December 2011, we implemented a restructuring program
associated with the integration of Diversey's business ("2011 -
2014 Integration and Optimization Program"). The program primarily
consists of (i) a reduction in headcount, (ii) the consolidation
of facilities, and (iii) the consolidation and streamlining of
certain customer and vendor contracts and relationships and is
expected to be completed by the end of 2014. The amount above
includes $47.3 million related to this program in the three months
ended March 31, 2012. These costs consisted of severance and
termination benefits. Cash payments made under this program in the
three months ended March 31, 2012 were $26.2 million.
|
|
(3) Cash paid for interest was $116.0 million in the three months
ended March 31, 2012 and $36.1 million in the three months ended
March 31, 2011.
|
|
(4) Cash paid for income taxes was $31.2 million in the three
months ended March 31, 2012 and $25.2 million in the three months
ended March 31, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|
|
|
CALCULATION OF NET (LOSS) EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
Basic Net (Loss) Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings available to common stockholders
|
|
|
$
|
(6.0
|
)
|
|
|
$
|
59.7
|
|
|
Distributed and allocated undistributed net earnings to non-vested
restricted stockholders
|
|
|
|
(0.1
|
)
|
|
|
|
(0.4
|
)
|
|
Distributed and allocated undistributed net (loss) earnings to
common stockholders
|
|
|
|
(6.1
|
)
|
|
|
|
59.3
|
|
|
Distributed net earnings - dividends paid to common stockholders
|
|
|
|
(25.1
|
)
|
|
|
|
(20.7
|
)
|
|
Allocation of undistributed net (loss) earnings to common
stockholders
|
|
|
$
|
(31.2
|
)
|
|
|
$
|
38.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - basic(1)
|
|
|
|
191.9
|
|
|
|
|
158.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) earnings per common share:
|
|
|
|
|
|
|
|
|
|
Distributed net earnings to common stockholders
|
|
|
$
|
0.13
|
|
|
|
$
|
0.13
|
|
|
Allocated undistributed net earnings to common stockholders
|
|
|
|
(0.16
|
)
|
|
|
|
0.24
|
|
|
Basic net (loss) earnings per common share
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net (Loss) Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
|
Distributed and allocated undistributed net earnings to common
stockholders
|
|
|
$
|
(6.1
|
)
|
|
|
$
|
59.3
|
|
|
Add: Allocated undistributed net earnings to non-vested restricted
stockholders
|
|
|
|
-
|
|
|
|
|
0.2
|
|
|
Less: Undistributed net earnings reallocated to non-vested
restricted stockholders
|
|
|
|
-
|
|
|
|
|
(0.2
|
)
|
|
Net (loss) earnings available to common stockholders - diluted
|
|
|
$
|
(6.1
|
)
|
|
|
$
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator(1) (2)
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - basic
|
|
|
|
191.9
|
|
|
|
|
158.7
|
|
|
Effect of assumed issuance of Settlement agreement shares
|
|
|
|
-
|
|
|
|
|
18.0
|
|
|
Effect of non-vested restricted stock and restricted stock units
|
|
|
|
-
|
|
|
|
|
0.2
|
|
|
Weighted average number of common shares outstanding - diluted
|
|
|
|
191.9
|
|
|
|
|
176.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net (loss) earnings per common share
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2012 includes the weighted average impact of 31.7 million shares
issued as part of the total consideration paid in connection with
the acquisition of Diversey on October 3, 2011.
|
|
(2) Provides for the following items if their inclusion is dilutive:
(i) the effect of assumed issuance of 18 million shares of common
stock reserved for the Settlement agreement as defined in our 2011
Annual Report on Form 10-K, and (ii) the effect of non-vested
restricted stock and restricted stock units using the treasury stock
method. In calculating diluted net earnings per common share for the
three months ended March 31, 2012, our diluted weighted average
number of common shares outstanding exclude the effect of assumed
issuance of Settlement agreement shares and non-vested restricted
stock and restricted stock units as the effect was anti-dilutive.
|
|
|
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
EXPLANATORY NOTE ON USE OF NON-U.S. GAAP FINANCIAL INFORMATION
In this supplementary information we present financial information in
accordance with U.S. GAAP. We also present financial information that
does not conform to U.S. GAAP, which we refer to as non-U.S. GAAP, as
our management believes it is useful to investors. In addition, non-U.S.
GAAP measures are used by management to review and analyze our operating
performance and, along with other data, as internal measures for setting
annual budgets and forecasts, assessing financial performance, providing
guidance and comparing our financial performance with our peers. The
non-U.S. GAAP information has limitations as an analytical tool and
should not be considered in isolation from or as a substitute for U.S.
GAAP information. It does not purport to represent any similarly titled
U.S. GAAP information and is not an indicator of our performance under
U.S. GAAP. Further, non-U.S. GAAP financial measures that we present may
not be comparable with similarly titled measures used by others.
Investors are cautioned against placing undue reliance on these non-U.S.
GAAP measures. Further, investors are urged to review and consider
carefully the adjustments made by management to the most directly
comparable U.S. GAAP financial measure to arrive at these non-U.S. GAAP
financial measures.
Our management will assess our financial results, such as gross profit,
operating profit and diluted net earnings per common share ("EPS"), both
on a U.S. GAAP basis and on an adjusted non-U.S. GAAP basis. Examples of
some other supplemental financial metrics our management will also use
to assess our financial performance include Earnings before Interest
Expense, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted
EBITDA, Adjusted EPS, Adjusted Cash EPS and Free Cash Flow. These
non-U.S. GAAP financial measures provide management with additional
means to understand and evaluate the core operating results and trends
in our ongoing business by eliminating certain one-time expenses (which
may not occur in each period presented) and other items that management
believes might otherwise make comparisons of our ongoing business with
prior periods and peers more difficult, obscure trends in ongoing
operations or reduce management's ability to make useful forecasts. Our
non-U.S. GAAP financial measures are also considered in calculations of
our performance measures set by the Organization and Compensation
Committee of our Board of Directors for purposes of determining
incentive compensation.
The non-U.S. GAAP financial metrics mentioned above exclude items we
consider unusual or special items and also exclude their related tax
effects. We evaluate the unusual or special items on an individual
basis. Our evaluation of whether to exclude an unusual or special item
for purposes of determining our non-U.S. GAAP financial measures
considers both the quantitative and qualitative aspects of the item,
including, among other things (i) its nature, (ii) whether or not it
relates to our ongoing business operations, and (iii) whether or not we
expect it to occur as part of our normal business on a regular basis. We
also present Adjusted Cash EPS, which excludes the amortization of
acquired intangible assets, non-cash interest expense (including the
accrued interest expense related to the Settlement agreement) and
non-cash taxes, which aids in presenting our EPS on an adjusted cash
basis.
Another non-U.S. GAAP financial measure we present is our core effective
income tax rate or provision, ("core tax rate"). Our core tax rate is a
measure of our U.S. GAAP effective tax rate, adjusted to exclude the tax
impact from the special items that are excluded from our adjusted net
earnings and adjusted EPS metrics. We consider our core tax rate as an
indicator of the taxes on our core business. The tax situation and
effective tax rate in the specific countries where the excluded or
special items occur will determine the impact (positive or negative) to
our core tax rate.
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP gross profit as reported
|
|
|
$
|
649.7
|
|
|
$
|
309.0
|
|
As a % of total net sales
|
|
|
|
33.9%
|
|
|
|
27.4%
|
|
Add: 2011 - 2014 Integration and Optimization Program associated
costs(1)
|
|
|
|
5.3
|
|
|
|
-
|
|
Add: European manufacturing facility closure charges(2)
|
|
|
|
-
|
|
|
|
0.3
|
|
Add: Non-recurring associated costs from legacy Diversey
restructuring programs(2)
|
|
|
|
2.5
|
|
|
|
-
|
|
Non-U.S. GAAP adjusted gross profit
|
|
|
$
|
657.5
|
|
|
$
|
309.3
|
|
As a % of total net sales
|
|
|
|
34.3%
|
|
|
|
27.4%
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP operating profit as reported
|
|
|
$
|
87.5
|
|
|
$
|
123.0
|
|
As a % of total net sales
|
|
|
|
4.6%
|
|
|
|
10.9%
|
|
Add: 2011- 2014 Integration and Optimization Program restructuring
charges(1)
|
|
|
|
47.3
|
|
|
|
-
|
|
Add: Other restructuring charges(2)
|
|
|
|
0.8
|
|
|
|
-
|
|
Add: 2011 - 2014 Integration and Optimization Program associated
costs(1)
|
|
|
|
5.8
|
|
|
|
-
|
|
Add: Non-recurring associated costs from legacy Diversey
restructuring programs(2)
|
|
|
|
7.5
|
|
|
|
-
|
|
Add: Costs related to the acquisition of Diversey(3)
|
|
|
|
1.8
|
|
|
|
-
|
|
Add: European manufacturing facility closure charges(2)
|
|
|
|
-
|
|
|
|
0.3
|
|
Total special items
|
|
|
|
63.2
|
|
|
|
0.3
|
|
Non-U.S. GAAP adjusted operating profit
|
|
|
$
|
150.7
|
|
|
$
|
123.3
|
|
As a % of total net sales
|
|
|
|
7.9%
|
|
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Note 2 of Condensed Consolidated Statements of Operations
for details. The 2011 - 2014 Integration and Optimization Program
associated costs include $5.3 million of an impairment recorded in
cost of sales, which was primarily due to the planned closure of a
Food Packaging facility in the U.S.
|
|
(2) These items represent special items and certain one-time charges
principally associated with past restructuring programs for both
Sealed Air and Diversey, of which $4.9 million were related to
Diversey's implementation of a European principal company structure.
These charges are not part of our ongoing business and are not
expected to have a continuing impact on the consolidated statements
of operations.
|
|
(3) These costs are not considered part of our ongoing business, are
considered one-time in nature and will not have a continuing impact
on our ongoing business or on the consolidated statements of
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
RECONCILIATION OF U.S. GAAP DILUTED NET (LOSS) EARNINGS PER
COMMON SHARE TO
|
|
NON-U.S. GAAP ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE
|
|
(Unaudited)
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
|
|
EPS
|
|
|
|
Net
Earnings
|
|
|
|
EPS
|
|
U.S. GAAP net (loss) earnings and EPS available to common
stockholders
|
|
|
$
|
(6.0
|
)
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
59.7
|
|
|
|
$
|
0.34
|
|
|
Items excluded from the calculation of adjusted net earnings
available to common stockholders and adjusted EPS, net of taxes when
applicable(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: 2011 - 2014 Integration and Optimization Program restructuring
charges
|
|
|
|
32.3
|
|
|
|
|
0.15
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Add: Other restructuring charges
|
|
|
|
0.6
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Add: 2011 - 2014 Integration and Optimization Program associated
costs
|
|
|
|
3.8
|
|
|
|
|
0.02
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Add: Non-recurring associated costs from legacy Diversey
restructuring programs
|
|
|
|
5.4
|
|
|
|
|
0.03
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Add: Costs related to the acquisition of Diversey
|
|
|
|
1.3
|
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Add: European manufacturing facility closure charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.2
|
|
|
|
|
-
|
|
|
Non-U.S. GAAP adjusted net earnings and adjusted EPS
|
|
|
$
|
37.4
|
|
|
|
$
|
0.18
|
|
|
|
$
|
59.9
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Amortization expense of acquired intangible assets
|
|
|
|
23.9
|
|
|
|
|
0.11
|
|
|
|
|
1.6
|
|
|
|
|
0.01
|
|
|
Add: Non-cash interest expense, including accrued interest related
to the Settlement agreement
|
|
|
|
(11.8
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
0.3
|
|
|
|
|
-
|
|
|
Add: Non-cash income taxes
|
|
|
|
(15.7
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
(1.3
|
)
|
|
|
|
(0.01
|
)
|
|
Non-U.S. GAAP adjusted cash net earnings and cash EPS
|
|
|
$
|
33.8
|
|
|
|
$
|
0.16
|
|
|
|
$
|
60.5
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - diluted
|
|
|
|
210.2
|
|
|
|
|
|
|
|
|
176.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our 2011 adjusted EPS calculations have been revised to conform
to our 2012 presentation.
|
|
|
(2) See "Tax Effect on Special Items and Non-cash Items" below for
the tax effect of each item included in the calculation above for
the three months ended March 31, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAX EFFECT on SPECIAL ITEMS and NON-CASH ITEMS
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2012
|
|
|
March 31, 2011
|
|
2011 - 2014 Integration and Optimization Program restructuring
charges
|
|
|
|
$
|
15.0
|
|
|
|
|
$
|
-
|
|
Other restructuring charges
|
|
|
|
|
0.2
|
|
|
|
|
|
-
|
|
2011 - 2014 Integration and Optimization Program associated costs
|
|
|
|
|
2.0
|
|
|
|
|
|
-
|
|
Non-recurring associated costs from legacy Diversey restructuring
programs
|
|
|
|
|
2.1
|
|
|
|
|
|
-
|
|
Costs related to the acquisition of Diversey
|
|
|
|
|
0.5
|
|
|
|
|
|
-
|
|
European manufacturing facility closure charges
|
|
|
|
|
-
|
|
|
|
|
|
0.1
|
|
Amortization expense of acquired intangible assets
|
|
|
|
|
10.3
|
|
|
|
|
|
0.9
|
|
Non-cash interest expense
|
|
|
|
|
(6.4
|
)
|
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF U.S. GAAP EFFECTIVE TAX RATE TO NON-U.S. GAAP
CORE TAX RATE
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
U.S. GAAP
|
|
|
Special Items
|
|
|
Non-U.S. GAAP
|
|
(Loss) Earnings Before Income Tax Provision
|
|
|
$
|
(14.4
|
)
|
|
|
$
|
63.2
|
|
|
|
$
|
48.8
|
|
|
Income Tax (Benefit) Provision
|
|
|
|
(8.4
|
)
|
|
|
|
19.8
|
|
|
|
|
11.4
|
|
|
Net (loss) earnings available to common stockholders
|
|
|
$
|
(6.0
|
)
|
|
|
$
|
43.4
|
|
|
|
$
|
37.4
|
|
|
Effective Tax Rate
|
|
|
|
58.3
|
%
|
|
|
|
31.3
|
%
|
|
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
BUSINESS SEGMENT INFORMATION AND CAPITAL EXPENDITURES(1)
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
Food Packaging
|
|
|
$
|
59.9
|
|
|
|
$
|
62.6
|
|
|
As a % of Food Packaging net sales
|
|
|
|
12.3
|
%
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Food Solutions
|
|
|
|
26.5
|
|
|
|
|
19.4
|
|
|
As a % of Food Solutions net sales
|
|
|
|
11.1
|
%
|
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Protective Packaging
|
|
|
|
46.5
|
|
|
|
|
40.0
|
|
|
As a % of Protective Packaging net sales
|
|
|
|
13.5
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diversey
|
|
|
|
0.8
|
|
|
|
|
-
|
|
|
As a % of Diversey net sales
|
|
|
|
0.1
|
%
|
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
3.7
|
|
|
|
|
1.0
|
|
|
As a % of Other net sales
|
|
|
|
3.9
|
%
|
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total segments and other
|
|
|
|
137.4
|
|
|
|
|
123.0
|
|
|
As a % of total net sales
|
|
|
|
7.2
|
%
|
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to the acquisition of Diversey
|
|
|
|
1.8
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges(2)
|
|
|
|
48.1
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
87.5
|
|
|
|
$
|
123.0
|
|
|
As a % of total net sales
|
|
|
|
4.6
|
%
|
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization on property, plant and equipment
and intangible assets acquired:
|
|
|
|
|
|
|
|
|
|
Food Packaging(3)
|
|
|
$
|
21.3
|
|
|
|
$
|
16.3
|
|
|
Food Solutions
|
|
|
|
7.9
|
|
|
|
|
7.5
|
|
|
Protective Packaging
|
|
|
|
5.9
|
|
|
|
|
7.0
|
|
|
Diversey
|
|
|
|
42.2
|
|
|
|
|
-
|
|
|
Other
|
|
|
|
5.0
|
|
|
|
|
5.2
|
|
|
Total
|
|
|
$
|
82.3
|
|
|
|
$
|
36.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The 2012 amounts presented are subject to change prior to the
filing of our upcoming Quarterly Report on Form 10-Q.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Restructuring and other charges by business segment reporting
structure:
|
|
|
|
|
|
|
|
|
|
Food Packaging(3)
|
|
|
$
|
17.5
|
|
|
|
$
|
-
|
|
|
Food Solutions
|
|
|
|
3.5
|
|
|
|
|
-
|
|
|
Protective Packaging
|
|
|
|
3.3
|
|
|
|
|
-
|
|
|
Diversey
|
|
|
|
20.7
|
|
|
|
|
-
|
|
|
Other
|
|
|
|
3.1
|
|
|
|
|
-
|
|
|
Total
|
|
|
$
|
48.1
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) 2012 includes $5.3 million of an impairment due to the planned
closure of facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES
|
|
|
$
|
29.2
|
|
|
|
$
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
BUSINESS SEGMENT AND PRO FORMA INFORMATION
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
Food
|
|
|
Food
|
|
|
Protective
|
|
|
|
|
|
|
|
|
Total Segments
|
|
|
|
|
Packaging
|
|
|
Solutions
|
|
|
Packaging
|
|
|
Diversey
|
|
|
Other
|
|
|
and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
488.2
|
|
|
|
$
|
238.2
|
|
|
|
$
|
345.6
|
|
|
|
$
|
750.9
|
|
|
|
$
|
94.6
|
|
|
|
$
|
1,917.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before restructuring charges and costs related
to the acquisition of Diversey
|
|
|
$
|
59.9
|
|
|
|
$
|
26.5
|
|
|
|
$
|
46.5
|
|
|
|
$
|
0.8
|
|
|
|
$
|
3.7
|
|
|
|
$
|
137.4
|
|
|
Add: Special items
|
|
|
|
5.5
|
|
|
|
|
0.1
|
|
|
|
|
0.2
|
|
|
|
|
7.5
|
|
|
|
|
-
|
|
|
|
|
13.3
|
|
|
Adjusted operating profit
|
|
|
|
65.4
|
|
|
|
|
26.6
|
|
|
|
|
46.7
|
|
|
|
|
8.3
|
|
|
|
|
3.7
|
|
|
|
|
150.7
|
|
|
as a % of net sales
|
|
|
|
13.4
|
%
|
|
|
|
11.2
|
%
|
|
|
|
13.5
|
%
|
|
|
|
1.1
|
%
|
|
|
|
3.9
|
%
|
|
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and amortization on property, plant and equipment,
net of special items(1)
|
|
|
|
15.5
|
|
|
|
|
7.4
|
|
|
|
|
5.4
|
|
|
|
|
10.5
|
|
|
|
|
3.8
|
|
|
|
|
42.6
|
|
|
Add: Amortization expense of acquired intangible assets
|
|
|
|
0.5
|
|
|
|
|
0.5
|
|
|
|
|
0.5
|
|
|
|
|
31.5
|
|
|
|
|
1.2
|
|
|
|
|
34.2
|
|
|
Total
|
|
|
$
|
81.4
|
|
|
|
$
|
34.5
|
|
|
|
$
|
52.6
|
|
|
|
$
|
50.3
|
|
|
|
$
|
8.7
|
|
|
|
$
|
227.5
|
|
|
as a % of net sales
|
|
|
|
16.7
|
%
|
|
|
|
14.5
|
%
|
|
|
|
15.2
|
%
|
|
|
|
6.7
|
%
|
|
|
|
9.2
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Total
|
|
|
|
|
Food
|
|
|
Food
|
|
|
Protective
|
|
|
|
|
|
|
|
|
Segments and
|
|
|
|
|
Packaging
|
|
|
Solutions
|
|
|
Packaging
|
|
|
Diversey(2)
|
|
|
Other
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
474.9
|
|
|
|
$
|
228.8
|
|
|
|
$
|
335.1
|
|
|
|
$
|
763.7
|
|
|
|
$
|
89.7
|
|
|
|
$
|
1,892.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
$
|
62.6
|
|
|
|
$
|
19.4
|
|
|
|
$
|
40.0
|
|
|
|
|
13.3
|
|
|
|
$
|
1.0
|
|
|
|
$
|
136.3
|
|
|
Add: Special items
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.3
|
|
|
|
|
7.5
|
|
|
|
|
-
|
|
|
|
|
7.8
|
|
|
Adjusted operating profit
|
|
|
|
62.6
|
|
|
|
|
19.4
|
|
|
|
|
40.3
|
|
|
|
|
20.8
|
|
|
|
|
1.0
|
|
|
|
|
144.1
|
|
|
as a % of net sales
|
|
|
|
13.2
|
%
|
|
|
|
8.5
|
%
|
|
|
|
12.0
|
%
|
|
|
|
2.7
|
%
|
|
|
|
1.1
|
%
|
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation and amortization on property, plant and equipment
|
|
|
|
16.0
|
|
|
|
|
6.8
|
|
|
|
|
6.5
|
|
|
|
|
13.5
|
|
|
|
|
4.2
|
|
|
|
|
47.0
|
|
|
Add: Amortization expense of acquired intangible assets
|
|
|
|
0.3
|
|
|
|
|
0.7
|
|
|
|
|
0.5
|
|
|
|
|
31.5
|
|
|
|
|
1.0
|
|
|
|
|
34.0
|
|
|
Total
|
|
|
$
|
78.9
|
|
|
|
$
|
26.9
|
|
|
|
$
|
47.3
|
|
|
|
$
|
65.8
|
|
|
|
$
|
6.2
|
|
|
|
$
|
225.1
|
|
|
as a % of net sales
|
|
|
|
16.6
|
%
|
|
|
|
11.8
|
%
|
|
|
|
14.1
|
%
|
|
|
|
8.6
|
%
|
|
|
|
6.9
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# denotes a variance greater than 100%
|
|
|
(1) See Note 1 of Reconciliation of U.S. GAAP Gross Profit and
Operating Profit to Non-U.S. GAAP Adjusted Gross Profit and
Operating Profit for further details.
|
|
(2) The pro forma information included in this release consists of
estimates based on preliminary data and is subject to change.
Diversey's reported operating income for the three months ended
March 31, 2011 was $43.3 million. The pro forma operating income
included above reflects pro forma adjustments made in accordance
with Article 11 of Regulation S-X, including the following material
pro forma adjustments:
|
|
a) the elimination of Diversey's historical amortization expense of
intangible assets of $8.0 million; and
|
|
b) incremental depreciation and amortization expense on intangible
assets acquired and property and equipment of $36.0 million.
|
|
Note: The depreciation and amortization expense included above does
not include share-based incentive compensation expense, which we add
back when we calculate Adjusted EBITDA because it is a non-cash
expense. See Note 3 of Supplemental Pro Forma and As Reported
Information for further details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY PRO FORMA AND AS REPORTED INFORMATION(1)
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
|
|
|
Pro Forma
|
|
|
As Reported
|
|
|
Pro Forma
|
|
|
|
|
Q2-11
|
|
|
Q3-11
|
|
|
Q4-11
|
|
|
Year Ended December 31, 2011
|
|
|
|
|
Sealed Air
|
|
|
Diversey
|
|
|
Total
|
|
|
Sealed Air
|
|
|
Diversey
|
|
|
Total
|
|
|
Sealed Air
|
|
|
Diversey
|
|
|
Total
|
|
|
Sealed Air
|
|
|
Diversey
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$ 1,212.6
|
|
|
$ 876.1
|
|
|
$ 2,088.7
|
|
|
$ 1,247.1
|
|
|
$ 824.7
|
|
|
$ 2,071.8
|
|
|
$ 1,256.8
|
|
|
$ 795.9
|
|
|
$ 2,052.7
|
|
|
$ 4,845.0
|
|
|
$ 3,260.4
|
|
|
$ 8,105.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
$ 135.7
|
|
|
$ 66.5
|
|
|
$ 202.2
|
|
|
$ 154.0
|
|
|
$ 33.8
|
|
|
$ 187.8
|
|
|
$ 122.4
|
|
|
$ (57.0)
|
|
|
$ 65.4
|
|
|
$ 568.4
|
|
|
$ 69.1
|
|
|
$ 637.5
|
|
Add: Special items
|
|
|
(0.1)
|
|
|
10.2
|
|
|
10.1
|
|
|
-
|
|
|
7.0
|
|
|
7.0
|
|
|
33.2
|
|
|
78.0
|
|
|
111.2
|
|
|
0.2
|
|
|
90.3
|
|
|
90.5
|
|
Adjusted operating profit
|
|
|
$ 135.6
|
|
|
$ 76.7
|
|
|
$ 212.3
|
|
|
$ 154.0
|
|
|
$ 40.8
|
|
|
$ 194.8
|
|
|
$ 155.6
|
|
|
$ 21.0
|
|
|
$ 176.6
|
|
|
$ 568.6
|
|
|
$ 159.4
|
|
|
$ 728.0
|
|
as a % of net sales
|
|
|
11.2%
|
|
|
8.8%
|
|
|
10.2%
|
|
|
12.3%
|
|
|
4.9%
|
|
|
9.4%
|
|
|
12.4%
|
|
|
2.6%
|
|
|
8.6%
|
|
|
11.7%
|
|
|
4.9%
|
|
|
9.0%
|
|
Add: Depreciation and amortization on property, plant and equipment
|
|
|
34.4
|
|
|
11.6
|
|
|
46.0
|
|
|
34.2
|
|
|
12.0
|
|
|
46.2
|
|
|
32.6
|
|
|
13.3
|
|
|
45.9
|
|
|
134.7
|
|
|
49.3
|
|
|
184.0
|
|
Add: Amortization expense of acquired intangible assets
|
|
|
2.5
|
|
|
31.5
|
|
|
34.0
|
|
|
2.5
|
|
|
31.5
|
|
|
34.0
|
|
|
2.5
|
|
|
31.5
|
|
|
34.0
|
|
|
10.0
|
|
|
126.0
|
|
|
136.0
|
|
Total
|
|
|
$ 172.5
|
|
|
$ 119.8
|
|
|
$ 292.3
|
|
|
$ 190.7
|
|
|
$ 84.3
|
|
|
$ 275.0
|
|
|
$ 190.7
|
|
|
$ 65.8
|
|
|
$ 256.5
|
|
|
$ 713.3
|
|
|
$ 334.7
|
|
|
$ 1,048.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)(3)(4)
|
|
|
$ 182.8
|
|
|
$ 122.5
|
|
|
$ 305.3
|
|
|
$ 200.6
|
|
|
$ 86.8
|
|
|
$ 287.4
|
|
|
$ 188.9
|
|
|
$ 65.8
|
|
|
$ 254.7
|
|
|
$ 738.6
|
|
|
$ 344.5
|
|
|
$ 1,083.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma information included in this release consists of
estimates based on preliminary data and is subject to change. The
pro forma operating income included above reflects pro forma
adjustments made in accordance with Article 11 of Regulation S-X.
|
|
(2) On a pro forma basis, Adjusted EBITDA for Q1-11 was $235.6
million, $166.3 million for Sealed Air and $69.3 million for
Diversey.
|
|
(3) In Q1-12 we revised our calculation of Adjusted EBITDA to
exclude our share-based incentive compensation expense related to
our U.S. profit sharing plan. At its discretion and with the
approval of the Organization and Compensation Committee of our Board
of Directors, management can elect to settle all or a portion of our
U.S. profit sharing contribution with Company stock Also, our
calculation of Adjusted EBITDA reflects the impact of other income
(expense).All prior periods have been revised to reflect this change.
|
|
(4) Adjusted EBITDA for Q1-12 was $235.7 million, $185.4 million for
Sealed Air and $50.3 million for Diversey.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
March 31,
|
|
|
|
|
|
|
2012(1)
|
|
|
|
2011(1)
|
|
|
|
2011
|
|
|
|
2011
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
|
538.5
|
|
|
|
$
|
|
722.8
|
|
|
|
$
|
|
800.3
|
|
|
|
$
|
|
705.0
|
|
|
|
$
|
|
696.0
|
|
|
|
Receivables, net
|
|
|
|
|
1,330.6
|
|
|
|
|
|
1,385.8
|
|
|
|
|
|
717.1
|
|
|
|
|
|
731.5
|
|
|
|
|
|
696.1
|
|
|
|
Inventories
|
|
|
|
|
891.0
|
|
|
|
|
|
798.1
|
|
|
|
|
|
575.9
|
|
|
|
|
|
601.8
|
|
|
|
|
|
559.0
|
|
|
|
Other current assets
|
|
|
|
|
223.7
|
|
|
|
|
|
355.9
|
|
|
|
|
|
197.3
|
|
|
|
|
|
169.5
|
|
|
|
|
|
171.0
|
|
|
Total current assets
|
|
|
|
|
2,983.8
|
|
|
|
|
|
3,262.6
|
|
|
|
|
|
2,290.6
|
|
|
|
|
|
2,207.8
|
|
|
|
|
|
2,122.1
|
|
|
Property and equipment, net
|
|
|
|
|
1,329.8
|
|
|
|
|
|
1,322.1
|
|
|
|
|
|
915.2
|
|
|
|
|
|
957.0
|
|
|
|
|
|
958.3
|
|
|
Goodwill
|
|
|
|
|
4,273.4
|
|
|
|
|
|
4,220.5
|
|
|
|
|
|
1,947.6
|
|
|
|
|
|
1,954.2
|
|
|
|
|
|
1,952.1
|
|
|
Intangible assets, net
|
|
|
|
|
2,080.6
|
|
|
|
|
|
2,103.2
|
|
|
|
|
|
77.6
|
|
|
|
|
|
77.7
|
|
|
|
|
|
79.0
|
|
|
Other assets, net
|
|
|
|
|
626.6
|
|
|
|
|
|
588.3
|
|
|
|
|
|
387.3
|
|
|
|
|
|
390.6
|
|
|
|
|
|
378.8
|
|
|
Total assets
|
|
|
$
|
|
11,294.2
|
|
|
|
$
|
|
11,496.7
|
|
|
|
$
|
|
5,618.3
|
|
|
|
$
|
|
5,587.3
|
|
|
|
$
|
|
5,490.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
$
|
|
34.5
|
|
|
|
$
|
|
34.5
|
|
|
|
$
|
|
22.3
|
|
|
|
$
|
|
9.8
|
|
|
|
$
|
|
9.1
|
|
|
|
Current portion of long-term debt
|
|
|
|
|
1.6
|
|
|
|
|
|
1.9
|
|
|
|
|
|
1.8
|
|
|
|
|
|
1.9
|
|
|
|
|
|
4.9
|
|
|
|
Accounts payable
|
|
|
|
|
621.5
|
|
|
|
|
|
619.0
|
|
|
|
|
|
279.2
|
|
|
|
|
|
263.6
|
|
|
|
|
|
265.5
|
|
|
|
Settlement agreement and related accrued interest
|
|
|
|
|
842.6
|
|
|
|
|
|
831.2
|
|
|
|
|
|
820.3
|
|
|
|
|
|
809.5
|
|
|
|
|
|
798.7
|
|
|
|
Other current liabilities
|
|
|
|
|
734.1
|
|
|
|
|
|
896.9
|
|
|
|
|
|
412.2
|
|
|
|
|
|
374.5
|
|
|
|
|
|
362.8
|
|
|
Total current liabilities
|
|
|
|
|
2,234.3
|
|
|
|
|
|
2,383.5
|
|
|
|
|
|
1,535.8
|
|
|
|
|
|
1,459.3
|
|
|
|
|
|
1,441.0
|
|
|
Long-term debt, less current portion
|
|
|
|
|
4,988.0
|
|
|
|
|
|
5,010.9
|
|
|
|
|
|
1,403.6
|
|
|
|
|
|
1,401.9
|
|
|
|
|
|
1,398.8
|
|
|
Other liabilities
|
|
|
|
|
1,029.8
|
|
|
|
|
|
1,149.9
|
|
|
|
|
|
145.8
|
|
|
|
|
|
153.4
|
|
|
|
|
|
154.9
|
|
|
Total liabilities
|
|
|
|
|
8,252.1
|
|
|
|
|
|
8,544.3
|
|
|
|
|
|
3,085.2
|
|
|
|
|
|
3,014.6
|
|
|
|
|
|
2,994.7
|
|
|
Total parent company stockholders' equity
|
|
|
|
|
3,047.9
|
|
|
|
|
|
2,957.5
|
|
|
|
|
|
2,538.2
|
|
|
|
|
|
2,576.9
|
|
|
|
|
|
2,499.2
|
|
|
Noncontrolling interests
|
|
|
|
|
(5.8
|
)
|
|
|
|
|
(5.1
|
)
|
|
|
|
|
(5.1
|
)
|
|
|
|
|
(4.2
|
)
|
|
|
|
|
(3.6
|
)
|
|
Total stockholders' equity
|
|
|
|
|
3,042.1
|
|
|
|
|
|
2,952.4
|
|
|
|
|
|
2,533.1
|
|
|
|
|
|
2,572.7
|
|
|
|
|
|
2,495.6
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
|
11,294.2
|
|
|
|
$
|
|
11,496.7
|
|
|
|
$
|
|
5,618.3
|
|
|
|
$
|
|
5,587.3
|
|
|
|
$
|
|
5,490.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The amounts presented are subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q and may change due to
subsequent revisions to the acquisition accounting for the Diversey
transaction. See Note 1 of Condensed Consolidated Statements of
Operations for further details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of net debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
$
|
34.5
|
|
|
|
|
$
|
34.5
|
|
|
|
|
$
|
22.3
|
|
|
|
|
$
|
9.8
|
|
|
|
|
$
|
9.1
|
|
|
Current portion of long-term debt
|
|
|
|
|
1.6
|
|
|
|
|
|
1.9
|
|
|
|
|
|
1.8
|
|
|
|
|
|
1.9
|
|
|
|
|
|
4.9
|
|
|
Settlement agreement and related accrued interest
|
|
|
|
|
842.6
|
|
|
|
|
|
831.2
|
|
|
|
|
|
820.3
|
|
|
|
|
|
809.5
|
|
|
|
|
|
798.7
|
|
|
Long-term debt, less current portion
|
|
|
|
|
4,988.0
|
|
|
|
|
|
5,010.9
|
|
|
|
|
|
1,403.6
|
|
|
|
|
|
1,401.9
|
|
|
|
|
|
1,398.8
|
|
|
Total debt
|
|
|
|
|
5,866.7
|
|
|
|
|
|
5,878.5
|
|
|
|
|
|
2,248.0
|
|
|
|
|
|
2,223.1
|
|
|
|
|
|
2,211.5
|
|
|
Less: Cash and cash equivalents
|
|
|
|
|
(538.5
|
)
|
|
|
|
|
(722.8
|
)
|
|
|
|
|
(800.3
|
)
|
|
|
|
|
(705.0
|
)
|
|
|
|
|
(696.0
|
)
|
|
Net debt
|
|
|
|
$
|
5,328.2
|
|
|
|
|
$
|
5,155.7
|
|
|
|
|
$
|
1,447.7
|
|
|
|
|
$
|
1,518.1
|
|
|
|
|
$
|
1,515.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of working capital (current assets less current
liabilities)
|
|
|
|
$
|
749.5
|
|
|
|
|
$
|
879.1
|
|
|
|
|
$
|
754.8
|
|
|
|
|
$
|
748.5
|
|
|
|
|
$
|
681.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
NON-U.S. GAAP FREE CASH FLOW
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011(1)
|
|
|
|
|
|
|
|
|
|
|
|
Non-U.S. GAAP adjusted cash net earnings
|
|
|
$
|
33.8
|
|
|
|
$
|
60.5
|
|
|
Add: Depreciation expense on property, plant and equipment
|
|
|
|
48.1
|
|
|
|
|
33.5
|
|
|
Add: Share-based incentive compensation expense
|
|
|
|
12.3
|
|
|
|
|
10.5
|
|
|
Less: Capital expenditures
|
|
|
|
(29.2
|
)
|
|
|
|
(19.5
|
)
|
|
Changes in working capital items:(2)
|
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
|
|
55.2
|
|
|
|
|
1.0
|
|
|
Inventories, net
|
|
|
|
(92.9
|
)
|
|
|
|
(63.2
|
)
|
|
Accounts payable
|
|
|
|
2.5
|
|
|
|
|
33.5
|
|
|
Non-U.S. GAAP Free Cash Flow
|
|
|
$
|
29.8
|
|
|
|
$
|
56.3
|
|
|
(1) Our 2011 free cash flow calculation has been revised to conform
to our 2012 presentation.
|
|
|
(2) Includes the impact of foreign currency translation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET (LOSS) EARNINGS AVAILABLE TO COMMON
STOCKHOLDERS TO
|
|
|
NON-U.S. GAAP EBIT, EBITDA AND ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2011(1)
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP net (loss) earnings available to common stockholders
|
|
|
$
|
(6.0
|
)
|
|
|
$
|
59.7
|
|
|
Add: Interest expense
|
|
|
|
97.8
|
|
|
|
|
37.0
|
|
|
Add: Income tax (benefit) provision
|
|
|
|
(8.4
|
)
|
|
|
|
22.2
|
|
|
Non-U.S. GAAP EBIT
|
|
|
|
83.4
|
|
|
|
|
118.9
|
|
|
Depreciation and amortization on property, plant and equipment and
intangible assets acquired
|
|
82.3
|
|
|
|
|
36.0
|
|
|
Non-U.S. GAAP EBITDA
|
|
|
|
165.7
|
|
|
|
|
154.9
|
|
|
Add: Share-based incentive compensation expense
|
|
|
|
12.3
|
|
|
|
|
10.5
|
|
|
Add: 2011- 2014 Integration and Optimization Program restructuring
charges
|
|
|
|
47.3
|
|
|
|
|
-
|
|
|
Add: Other restructuring charges
|
|
|
|
0.8
|
|
|
|
|
-
|
|
|
Add: 2011 - 2014 Integration and Optimization Program associated
costs (less accelerated depreciation and amortization expense of
$5.3 million)(2)
|
|
0.5
|
|
|
|
|
-
|
|
|
Add: Non-recurring associated costs from legacy Diversey
restructuring programs (less accelerated depreciation and
amortization expense of $0.2 million.)
|
|
7.3
|
|
|
|
|
-
|
|
|
Add: Costs related to the acquisition of Diversey
|
|
|
|
1.8
|
|
|
|
|
-
|
|
|
Add: European manufacturing facility closure charges
|
|
|
|
-
|
|
|
|
|
0.3
|
|
|
Add: Foreign currency exchange losses related to Venezuelan
subsidiary
|
|
|
|
-
|
|
|
|
|
0.2
|
|
|
Add: Settlement agreement related costs
|
|
|
|
0.1
|
|
|
|
|
0.4
|
|
|
Non-U.S. GAAP adjusted EBITDA
|
|
|
$
|
235.8
|
|
|
|
$
|
166.3
|
|
|
Total net sales
|
|
|
$
|
1,917.5
|
|
|
|
$
|
1,128.5
|
|
|
Non-U.S. GAAP adjusted EBITDA as a percentage of total net
sales
|
|
|
|
12.3
|
%
|
|
|
|
14.7
|
%
|
|
(1) Our 2011 adjusted EBITDA calculation has been revised to conform
to our 2012 presentation. See Note 3, of "Supplementary Pro Forma
and As Reported Information" for more details.
|
|
(2) See Note 1 of Reconciliation of U.S. GAAP Gross Profit and
Operating Profit to Non-U.S. GAAP Adjusted Gross Profit and
Operating Profit for further details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
SUPPLEMENTARY INFORMATION
|
|
COMPONENTS OF CHANGE IN NET SALES - BUSINESS SEGMENTS AND OTHER(1)
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food
|
|
|
|
Food
|
|
|
|
Protective
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Packaging
|
|
|
|
Solutions
|
|
|
|
Packaging
|
|
|
|
Diversey
|
|
|
|
Other
|
|
|
|
Company
|
|
|
Volume - Units
|
|
|
$
|
4.5
|
|
|
1.0
|
|
%
|
|
|
$
|
2.2
|
|
|
1.0
|
|
%
|
|
|
$
|
9.8
|
|
|
2.9
|
|
%
|
|
|
$
|
-
|
|
|
-
|
%
|
|
|
$
|
4.3
|
|
|
4.8
|
|
%
|
|
|
$
|
20.8
|
|
|
1.8
|
|
%
|
|
Volume - Acquired businesses, net of (dispositions)
|
|
|
|
0.3
|
|
|
0.1
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
750.9
|
|
|
#
|
|
|
|
|
0.6
|
|
|
0.7
|
|
|
|
|
|
751.8
|
|
|
66.6
|
|
|
|
Product price/mix (2)
|
|
|
|
10.7
|
|
|
2.2
|
|
|
|
|
|
7.4
|
|
|
3.2
|
|
|
|
|
|
2.8
|
|
|
0.8
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
0.9
|
|
|
1.0
|
|
|
|
|
|
21.8
|
|
|
1.9
|
|
|
|
Foreign currency translation
|
|
|
|
(2.2
|
)
|
|
(0.5
|
)
|
|
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
|
|
|
(2.1
|
)
|
|
(0.6
|
)
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
|
|
|
(5.4
|
)
|
|
(0.5
|
)
|
|
|
Total change (U.S. GAAP)
|
|
|
$
|
13.3
|
|
|
2.8
|
|
%
|
|
|
$
|
9.4
|
|
|
4.1
|
|
%
|
|
|
$
|
10.5
|
|
|
3.1
|
|
%
|
|
|
$
|
750.9
|
|
|
#
|
%
|
|
|
$
|
4.9
|
|
|
5.5
|
|
%
|
|
|
$
|
789.0
|
|
|
69.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of foreign currency translation
|
|
|
|
2.2
|
|
|
0.5
|
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
|
|
|
2.1
|
|
|
0.6
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
0.9
|
|
|
1.0
|
|
|
|
|
|
5.4
|
|
|
0.5
|
|
|
|
Total constant dollar change (Non-U.S. GAAP)
|
|
|
$
|
15.5
|
|
|
3.3
|
|
%
|
|
|
$
|
9.6
|
|
|
4.2
|
|
%
|
|
|
$
|
12.6
|
|
|
3.7
|
|
%
|
|
|
$
|
750.9
|
|
|
#
|
%
|
|
|
$
|
5.8
|
|
|
6.5
|
|
%
|
|
|
$
|
794.4
|
|
|
70.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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 the 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. 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.
|
|
(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.
|
|
|
|
|
# Denotes a variance greater than 100%, or not meaningful.
|
|
|
|
|
|
|
COMPONENTS OF CHANGE IN NET SALES - GEOGRAPHIC
|
|
Unaudited
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
International
|
|
|
|
|
Total Company
|
|
|
Volume - Units
|
|
|
|
|
|
$
|
10.4
|
|
|
2.0
|
%
|
|
|
$
|
10.4
|
|
|
|
1.7
|
|
%
|
|
|
$
|
20.8
|
|
|
|
1.8
|
|
%
|
|
Volume - Acquired businesses, net of (dispositions)
|
|
|
|
106.5
|
|
|
20.5
|
|
|
|
|
645.3
|
|
|
|
#
|
|
|
|
|
|
751.8
|
|
|
|
66.6
|
|
|
|
Product price/mix
|
|
|
|
|
|
|
12.1
|
|
|
2.3
|
|
|
|
|
9.7
|
|
|
|
1.6
|
|
|
|
|
|
21.8
|
|
|
|
1.9
|
|
|
|
Foreign currency translation
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(5.4
|
)
|
|
|
(0.9
|
)
|
|
|
|
|
(5.4
|
)
|
|
|
(0.5
|
)
|
|
|
Total
|
|
|
|
|
|
$
|
129.0
|
|
|
24.8
|
%
|
|
|
$
|
660.0
|
|
|
|
#
|
|
%
|
|
|
$
|
789.0
|
|
|
|
69.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# Denotes a variance greater than 100%, or not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEALED AIR CORPORATION
|
|
|
SUPPLEMENTARY INFORMATION
|
|
|
GEOGRAPHIC SALES INFORMATION
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change in Net Sales by
|
|
|
|
|
|
|
|
|
|
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the
|
|
|
|
|
|
Percentage of
|
|
|
|
Including the
|
|
|
|
effect of
|
|
|
|
|
|
Net Sales by
|
|
|
|
effect of foreign
|
|
|
|
foreign
|
|
|
|
|
|
Geographic
|
|
|
|
currency
|
|
|
|
currency
|
|
|
|
|
|
Region
|
|
|
|
translation
|
|
|
|
translation
|
|
|
U.S.
|
|
|
33.8
|
%
|
|
|
24.8
|
%
|
|
|
24.8
|
%
|
|
Canada
|
|
|
3.2
|
|
|
|
84.2
|
|
|
|
85.3
|
|
|
EMEA
|
|
|
35.8
|
|
|
|
#
|
|
|
|
#
|
|
|
Latin America
|
|
|
9.8
|
|
|
|
75.3
|
|
|
|
80.6
|
|
|
Asia Pacific
|
|
|
17.4
|
|
|
|
#
|
|
|
|
#
|
|
|
Total
|
|
|
100.0
|
%
|
|
|
69.8
|
%
|
|
|
70.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA = Europe, Middle East and Africa
# denotes a variance greater than 100%
Sealed Air Corporation
Amanda Butler, 201-791-7600
© Business Wire 2012
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