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April 2024
February 2024
February 2024
February 2024
January 2024
January 2024
January 2024
November 2023
September 2023
August 2023
|
News Release
|
|
|
|
Fourth Quarter Highlights
|
|
(all comparisons made to the September 2019 quarter)
|
•
|
Net sales of $3 billion with 4 percent organic volume growth
|
•
|
Operating income of $349 million
|
•
|
Operating EBITDA up 18 percent to $586 million
|
•
|
Net income per diluted share of $1.44
|
•
|
Adjusted net income per diluted share increase of 77 percent to $1.59
|
|
Fiscal Year Highlights
|
|
(all comparisons made to fiscal year 2019)
|
•
|
Net sales of $11.7 billion with 2 percent organic volume growth
|
•
|
Operating income up 21 percent to $1.2 billion
|
•
|
Operating EBITDA up 41 percent to $2.2 billion
|
•
|
Net income per diluted share up 38 percent to $4.14
|
•
|
Adjusted net income per diluted share increase of 42 percent to $4.85
|
•
|
RPC Group Plc (“RPC”) integration and synergy realization progressing better than plan
|
•
|
Exceeded guidance for both cash flow from operations and free cash flow, recording $1.5 billion and $947 million, respectively.
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
September 26, 2020
|
September 28, 2019
|
September 26, 2020
|
September 28, 2019
|
|||||||||||||
Net sales
|
$
|
3,008
|
$
|
3,019
|
$
|
11,709
|
$
|
8,878
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
2,342
|
2,511
|
9,301
|
7,259
|
||||||||||||
Selling, general and administrative
|
219
|
199
|
850
|
583
|
||||||||||||
Amortization of intangibles
|
74
|
75
|
300
|
194
|
||||||||||||
Restructuring and transaction activities
|
24
|
(164
|
)
|
79
|
(132
|
)
|
||||||||||
Operating income
|
349
|
398
|
1,179
|
974
|
||||||||||||
Other (income) expense, net
|
25
|
(4
|
)
|
31
|
155
|
|||||||||||
Interest expense, net
|
96
|
128
|
435
|
329
|
||||||||||||
Income before income taxes
|
228
|
274
|
713
|
490
|
||||||||||||
Income tax expense
|
33
|
45
|
154
|
86
|
||||||||||||
Net income
|
$
|
195
|
$
|
229
|
$
|
559
|
$
|
404
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
1.47
|
$
|
1.73
|
$
|
4.22
|
$
|
3.08
|
||||||||
Diluted
|
1.44
|
1.70
|
4.14
|
3.00
|
||||||||||||
Outstanding weighted-average shares: (in millions)
|
||||||||||||||||
Basic
|
133.1
|
132.2
|
132.6
|
131.3
|
||||||||||||
Diluted
|
135.4
|
134.4
|
135.1
|
134.6
|
||||||||||||
September 26, 2020
|
September 28, 2019
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
750
|
$
|
750
|
||||
Accounts receivable, net
|
1,469
|
1,526
|
||||||
Inventories
|
1,268
|
1,324
|
||||||
Other current assets
|
330
|
157
|
||||||
Property, plant, and equipment, net
|
4,561
|
4,714
|
||||||
Goodwill, intangible assets, and other long-term assets
|
8,323
|
7,998
|
||||||
Total assets
|
$
|
16,701
|
$
|
16,469
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities, excluding debt
|
$
|
2,108
|
$
|
1,935
|
||||
Current and long-term debt
|
10,237
|
11,365
|
||||||
Other long-term liabilities
|
2,264
|
1,551
|
||||||
Stockholders’ equity
|
2,092
|
1,618
|
||||||
Total liabilities and stockholders' equity
|
$
|
16,701
|
$
|
16,469
|
Fiscal Year Ended
|
||||||||
September 26, 2020
|
September 28, 2019
|
|||||||
Cash flows from operating activities:
|
||||||||
Net
cash from operating activities
|
$
|
1,530
|
$
|
1,201
|
||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant, and equipment, net
|
(583
|
)
|
(399
|
)
|
||||
Divestiture of business
|
—
|
326
|
||||||
Acquisition of business & purchase price derivatives
|
(14
|
)
|
(6,178
|
)
|
||||
Settlement of net investment hedges
|
281
|
—
|
||||||
Net cash from investing activities
|
(316
|
)
|
(6,251
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on long-term borrowings
|
(2,436
|
)
|
(1,214
|
)
|
||||
Proceeds from long-term borrowings
|
1,202
|
6,784
|
||||||
Proceeds from issuance of common stock
|
30
|
55
|
||||||
Debt financing costs
|
(16
|
)
|
(87
|
)
|
||||
Repurchase of common stock
|
—
|
(74
|
)
|
|||||
Payment of tax receivable agreement
|
—
|
(38
|
)
|
|||||
Net cash from financing activities
|
(1,220
|
)
|
(5,426
|
)
|
||||
Effect of currency translation on cash
|
6
|
(7
|
)
|
|||||
Net change in cash and cash equivalents
|
—
|
369
|
||||||
Cash and cash equivalents at beginning of period
|
750
|
381
|
||||||
Cash and cash equivalents at end of period
|
$
|
750
|
$
|
750
|
Quarterly Period Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,071
|
$
|
746
|
$
|
604
|
$
|
587
|
$
|
3,008
|
||||||||||
Operating income
|
$
|
104
|
$
|
94
|
$
|
73
|
$
|
78
|
$
|
349
|
||||||||||
Depreciation and amortization
|
78
|
60
|
44
|
25
|
207
|
|||||||||||||||
Restructuring and transaction activities (1)
|
18
|
5
|
—
|
1
|
24
|
|||||||||||||||
Other non-cash charges (2)
|
2
|
1
|
1
|
2
|
6
|
|||||||||||||||
Operating EBITDA
|
$
|
202
|
$
|
160
|
$
|
118
|
$
|
106
|
$
|
586
|
||||||||||
Quarterly Period Ended September 28, 2019
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,077
|
$
|
744
|
$
|
570
|
$
|
628
|
$
|
3,019
|
||||||||||
Operating income
|
$
|
13
|
$
|
67
|
$
|
250
|
$
|
68
|
$
|
398
|
||||||||||
Depreciation and amortization
|
82
|
59
|
46
|
29
|
216
|
|||||||||||||||
Restructuring and transaction activities (1)
|
41
|
6
|
(212
|
)
|
3
|
(162
|
)
|
|||||||||||||
Other non-cash charges (2)
|
37
|
5
|
2
|
1
|
45
|
|||||||||||||||
Operating EBITDA
|
$
|
173
|
$
|
137
|
$
|
86
|
$
|
101
|
$
|
497
|
||||||||||
(1)
|
The current quarter primarily includes transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes the sale
of our Seal for Life business of $214 million partially offset by restructuring and transaction related costs from the RPC acquisition.
|
(2)
|
Other non-cash charges for the September 2020 quarter primarily includes $5 million of stock compensation expense. Other non-cash charges for the
September 2019 quarter primarily includes a $39 million inventory step up charge related to the RPC acquisition and $6 million of stock compensation expense.
|
Fiscal Year Ended September 26, 2020
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging- North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
4,195
|
$
|
2,850
|
$
|
2,330
|
$
|
2,334
|
$
|
11,709
|
||||||||||
Operating income
|
$
|
299
|
$
|
320
|
$
|
243
|
$
|
317
|
$
|
1,179
|
||||||||||
Depreciation and amortization
|
318
|
250
|
172
|
105
|
845
|
|||||||||||||||
Restructuring and transaction activities (1)
|
55
|
11
|
6
|
7
|
79
|
|||||||||||||||
Other non-cash charges (2)
|
31
|
10
|
5
|
8
|
54
|
|||||||||||||||
Operating EBITDA
|
$
|
703
|
$
|
591
|
$
|
426
|
$
|
437
|
$
|
2,157
|
||||||||||
Fiscal Year Ended September 28, 2019*
|
||||||||||||||||||||
Consumer Packaging - International
|
Consumer Packaging - North America
|
Health, Hygiene & Specialties
|
Engineered Materials
|
Total
|
||||||||||||||||
Net sales
|
$
|
1,229
|
$
|
2,636
|
$
|
2,475
|
$
|
2,538
|
$
|
8,878
|
||||||||||
Operating income
|
$
|
12
|
$
|
234
|
$
|
410
|
$
|
318
|
$
|
974
|
||||||||||
Depreciation and amortization
|
93
|
216
|
188
|
116
|
613
|
|||||||||||||||
Restructuring and transaction activities (1)
|
54
|
14
|
(198
|
)
|
8
|
(126
|
)
|
|||||||||||||
Other non-cash charges (2)
|
38
|
11
|
9
|
11
|
69
|
|||||||||||||||
Operating EBITDA
|
$
|
197
|
$
|
475
|
$
|
405
|
$
|
453
|
$
|
1,530
|
||||||||||
(1)
|
Restructuring and transaction activity costs for the fiscal year ended September 26, 2020, are primarily related to the RPC acquisition. Restructuring
and transaction activity costs for the fiscal year ended September 28, 2019, are primarily related to the sale of our Seal for Life business of $214 million, partially offset by restructuring and transaction activity costs from the RPC
acquisition.
|
(2)
|
Other non-cash charges for the fiscal year ended September 26, 2020 primarily includes $33 million of stock compensation expense and a $19 million
inventory step-up related to the RPC acquisition. Other non-cash charges for the fiscal year ended September 28, 2019 includes a$39 million inventory step up charge related to the RPC acquisition, $27 million of stock compensation expense
and a $5 million inventory step up charge related to acquisitions and other non-cash charges.
* Prior year has been restated to match our current structure.
|
Quarterly Period Ended
|
Fiscal Year Ended
|
|||||||||||||||
September 26, 2020
|
September 28, 2019
|
September 26, 2020
|
September 28, 2019
|
|||||||||||||
Net income
|
$
|
195
|
$
|
229
|
$
|
559
|
$
|
404
|
||||||||
Add: other (income) expense, net
|
25
|
(4
|
)
|
31
|
155
|
|||||||||||
Add: interest expense, net
|
96
|
128
|
435
|
329
|
||||||||||||
Add: income tax expense
|
33
|
45
|
154
|
86
|
||||||||||||
Operating income
|
$
|
349
|
$
|
398
|
$
|
1,179
|
$
|
974
|
||||||||
Add: non-cash amortization from 2006 private sale
|
6
|
7
|
25
|
28
|
||||||||||||
Add: restructuring and transaction activities (1)
|
24
|
(162
|
)
|
79
|
(126
|
)
|
||||||||||
Add: other non-cash charges (2)
|
6
|
45
|
54
|
69
|
||||||||||||
Adjusted operating income (8)
|
$
|
385
|
$
|
288
|
$
|
1,337
|
$
|
1,240
|
||||||||
Add: depreciation
|
133
|
141
|
545
|
419
|
||||||||||||
Add: amortization of intangibles (3)
|
68
|
68
|
275
|
166
|
||||||||||||
Operating EBITDA (8)
|
$
|
586
|
$
|
497
|
$
|
2,157
|
$
|
1,530
|
||||||||
Add: Unrealized synergies (4)
|
62
|
|||||||||||||||
Adjusted EBITDA (8)
|
$
|
2,219
|
Cash flow from operating activities
|
$
|
552
|
$
|
630
|
$
|
1,530
|
$
|
1,201
|
||||||||
Net additions to property, plant, and equipment
|
(165
|
)
|
(128
|
)
|
(583
|
)
|
(399
|
)
|
||||||||
Payment of tax receivable agreement
|
—
|
(22
|
)
|
—
|
(38
|
)
|
||||||||||
Free cash flow (8)
|
$
|
387
|
$
|
480
|
$
|
947
|
$
|
764
|
||||||||
Net income per diluted share
|
$
|
1.44
|
$
|
1.70
|
$
|
4.14
|
$
|
3.00
|
||||||||
Other expense, net
|
0.18
|
(0.03
|
)
|
0.23
|
1.15
|
|||||||||||
Non-cash amortization from 2006 private sale
|
0.04
|
0.05
|
0.19
|
0.21
|
||||||||||||
Restructuring and transaction activities
|
0.18
|
(1.20
|
)
|
0.58
|
(0.93
|
)
|
||||||||||
Other non-cash charges (5)
|
—
|
0.29
|
0.14
|
0.29
|
||||||||||||
Non-comparable tax items (6)
|
(0.15
|
)
|
—
|
(0.15
|
)
|
—
|
||||||||||
Income tax impact on items above (7)
|
(0.10
|
)
|
0.09
|
(0.28
|
)
|
(0.31
|
)
|
|||||||||
Adjusted net income per diluted share (8)
|
$
|
1.59
|
$
|
0.90
|
$
|
4.85
|
$
|
3.41
|
||||||||
Estimated
Fiscal 2021
|
||||||||||||||||
Cash flow from operating activities
|
$
|
1,525 - $1,625
|
||||||||||||||
Additions to property, plant, and equipment
|
(650
|
)
|
||||||||||||||
Free cash flow (8)
|
$
|
875 - $975
|
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Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Berry Global Group Inc.
Berry Global Group Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:
Rating
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These decreases were partially offset by a $43 million favorable impact from cost productivity and product mix, a $36 million favorable impact from the organic volume improvement, and a $13 million decrease in depreciation and amortization expense.
The net sales decline in the Health, Hygiene & Specialties segment is primarily attributed to lower selling prices of $40 million due to the pass through of lower resin costs, a 2% decline as the result of a customer product transition, a 3% base volume decline as a result of weakness in the North American baby care market, prior year sales of $20 million related to the divested SFL business and a $46 million unfavorable impact from foreign currency changes.
Future declines in our peer company and our market capitalizations and total enterprise value along with lower valuation market multiples or significant declines in operating performance could impact future impairment tests or may require a more frequent assessment.
The net sales growth is primarily attributed to acquisition net sales of $1,479 million partially offset by prior period divestiture sales of $20 million, a $48 million unfavorable impact from foreign currency changes, lower selling prices of $175 million due to the pass through of lower resin costs, a 1% decline as the result of a customer product transition and a 2% base volume decline.
The decrease in comprehensive income is primarily attributed to a $92 million decrease in net income, a $160 million unfavorable change in the fair value of interest rate hedges, a $58 million decrease in unrealized gains on the Company's pension plans, partially offset by a $56 million favorable change in currency translation.
Net cash used in investing...Read more
This is not to suggest...Read more
Net cash from financing activities...Read more
The operating income decrease is...Read more
Cash Flows from Operating Activities...Read more
We use free cash flow...Read more
While the expected benefits on...Read more
These improvements were partially offset...Read more
A single long-term return assumption...Read more
The net sales decrease in...Read more
The other expense increase is...Read more
The increase in comprehensive income...Read more
These improvements were partially offset...Read more
These favorable items were partially...Read more
The Company has not provided...Read more
Cash Flows from Financing Activities...Read more
The operating income increase is...Read more
For these sponsored plans, the...Read more
These increases were partially offset...Read more
Additionally, the expected long term...Read more
Various assumptions are used in...Read more
The Other expense decrease is...Read more
Our results are affected by...Read more
Under this method, the Company...Read more
We seek to obtain businesses...Read more
The operating income increase is...Read more
The net sales growth in...Read more
These declines were partially offset...Read more
These improvements were partially offset...Read more
The income tax expense increase...Read more
As historical business combinations and...Read more
These increases were partially offset...Read more
The operating income increase is...Read more
We believe our existing U.S....Read more
The operating income increase is...Read more
These favorable items were partially...Read more
The income tax expense increase...Read more
Free Cash Flow We define...Read more
The structure is designed to...Read more
The operating income decrease was...Read more
Summarized Guarantor Financial Information Berry...Read more
The interest expense increase is...Read more
The interest expense increase is...Read more
Goodwill and Other Indefinite Lived...Read more
These decreases were partially offset...Read more
On an annual basis and...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-K Annual Report
Material Contracts, Statements, Certifications & more
Berry Global Group Inc provided additional information to their SEC Filing as exhibits
Ticker: BERY
CIK: 1378992
Form Type: 10-K Annual Report
Accession Number: 0001140361-20-026326
Submitted to the SEC: Mon Nov 23 2020 4:21:47 PM EST
Accepted by the SEC: Mon Nov 23 2020
Period: Saturday, September 26, 2020
Industry: Plastics Products