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Dec 31, 2019
Sealed Air Q4 2019 Earnings Report
Sealed Air's Q4 2019 performance saw increased net sales and adjusted EBITDA, driven by the Reinvent SEE strategy and the acquisition of Automated Packaging Systems, despite a decline in net earnings due to special items.
Key Takeaways
Sealed Air reported a 3% increase in net sales to $1.3 billion and a 9% increase in Adjusted EBITDA to $271 million for Q4 2019. Net earnings, however, decreased by 38% to $124 million, or $0.80 per share, due to special items. Adjusted EPS increased by 4% to $0.78.
Net sales increased 3% to $1.3 billion.
Net earnings decreased 38% to $124 million, or $0.80 per share.
Adjusted EPS increased 4% to $0.78.
Adjusted EBITDA increased 9% to $271 million.
Revenue by Segment
Forward Guidance
For the full year 2020, Sealed Air expects net sales in the range of $4.9 billion to $4.95 billion, which represents an increase of 2% to 3% growth as reported and 3% to 4% in constant dollars. Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion. The Company forecasts Adjusted EPS to be in the range of $2.85 to $2.95, which is based on approximately 156 million shares outstanding and an anticipated Adjusted Tax Rate of approximately 27%. Free Cash Flow in 2020 is expected to be approximately $350 million, with capital expenditures of approximately $200 million and Reinvent SEE and other restructuring associated payments of approximately $100 million.
Positive Outlook
- Net sales growth of 2% to 3% as reported.
- Net sales growth of 3% to 4% in constant dollars.
- Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion.
- Adjusted EPS to be in the range of $2.85 to $2.95.
- Free Cash Flow in 2020 is expected to be approximately $350 million.
Challenges Ahead
- Capital expenditures of approximately $200 million.
- Reinvent SEE and other restructuring associated payments of approximately $100 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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