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Dec 31, 2019

Reynolds Q4 2019 Earnings Report

Reynolds reported fourth quarter and fiscal year 2019 financial results in line with expectations and provided annual 2020 outlook.

Key Takeaways

Reynolds Consumer Products reported fourth quarter net revenues of $835 million and net income of $90 million. The company's results were in line with projections, and they initiated a quarterly cash dividend.

Net Revenues for the fourth quarter of 2019 were $835 million, compared to $907 million in the prior year period.

Net Income for the fourth quarter of 2019 was $90 million compared to $84 million in the prior year period.

Adjusted EBITDA for the fourth quarter of 2019 was $214 million compared to $224 million in the prior year period.

The company announced the initiation of a quarterly cash dividend, with the initial dividend for the first quarter of 2020 set at $0.15 per common share.

Total Revenue
$835M
Previous year: $3.14B
-73.4%
EPS
$0.44
Previous year: $1.13
-61.1%
Gross Profit
$263M
Previous year: $266M
-1.1%
Cash and Equivalents
$102M
Free Cash Flow
$222M
Previous year: $448M
-50.4%
Total Assets
$4.16B
Previous year: $6.42B
-35.2%

Reynolds

Reynolds

Reynolds Revenue by Segment

Forward Guidance

For the fiscal year ending December 31, 2020, the Company is providing the following guidance:

Positive Outlook

  • Net Income to be in the range of $320 million to $350 million
  • Earnings per share to be in the range of $1.52 to $1.67 per share
  • Adjusted Net Income to be in the range of $350 million to $370 million
  • Adjusted earnings per share to be in the range of $1.67 to $1.76 per share
  • Adjusted EBITDA to be in the range of $675 million to $695 million

Challenges Ahead

  • Net Debt to be in the range of $2.0 billion to $2.2 billion