Silgan Announces First Quarter 2024 Results
Highlights
- First quarter 2024 adjusted EPS at the high end of the estimated range
- Expects improving demand trends in the second quarter of 2024
-
Significant progress on multi-year
$50 million cost reduction program - Confirms full year estimates
Adjusted net income per diluted share for the first quarter of 2024 was
"The
First Quarter Results
Net sales for the first quarter of 2024 were
Income before interest and income taxes (EBIT) for the first quarter of 2024 was
Interest and other debt expense for the first quarter of 2024 was
The effective tax rates were 24.5% and 23.8% for the first quarters of 2024 and 2023, respectively.
First Quarter Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
Dispensing and Specialty Closures adjusted EBIT decreased
Metal Containers
Net sales of the Metal Containers segment were
Metal Containers adjusted EBIT decreased
Custom Containers
Net sales of the Custom Containers segment were
Custom Containers adjusted EBIT increased
Outlook for 2024
The Company is confirming its estimate of adjusted net income per diluted share for the full year of 2024 in the range of
The Company anticipates interest and other debt expense in 2024 of approximately
The Company currently estimates that free cash flow in 2024 will be approximately
For the second quarter of 2024, the Company expects low to mid single digit volume growth in the Dispensing and Specialty Closures segment, low single digit volume growth in the Custom Containers segment, and comparable volumes in the Metal Containers segment as compared to the prior year period. The Company is providing an estimate of adjusted net income per diluted share for the second quarter of 2024 in the range of
Conference Call
* * *
Statements included in this press release which are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934, as amended. Such forward looking statements are made based upon management’s expectations and beliefs concerning future events impacting the Company and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the Company’s Annual Report on Form 10-K for 2023 and other filings with the
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
(UNAUDITED) |
||||||
For the quarter ended |
||||||
(Dollars and shares in millions, except per share amounts) |
||||||
|
|
|
|
|||
|
2024 |
|
2023 |
|||
|
|
|
|
|||
Net sales |
$ |
1,317.0 |
|
|
$ |
1,418.3 |
|
|
|
|
|||
Cost of goods sold |
|
1,093.5 |
|
|
|
1,180.3 |
|
|
|
|
|||
Gross profit |
|
223.5 |
|
|
|
238.0 |
|
|
|
|
|||
Selling, general and administrative expenses |
|
100.5 |
|
|
|
101.4 |
|
|
|
|
|||
Rationalization charges |
|
11.7 |
|
|
|
4.1 |
|
|
|
|
|||
Other pension and postretirement (income) expense |
|
(0.4 |
) |
|
|
1.3 |
|
|
|
|
|||
Income before interest and income taxes |
|
111.7 |
|
|
|
131.2 |
|
|
|
|
|||
Interest and other debt expense |
|
38.6 |
|
|
|
36.8 |
|
|
|
|
|||
Income before income taxes |
|
73.1 |
|
|
|
94.4 |
|
|
|
|
|||
Provision for income taxes |
|
17.9 |
|
|
|
22.4 |
|
|
|
|
|||
Net income |
$ |
55.2 |
|
|
$ |
72.0 |
|
|
|
|
|||
|
|
|
|
|||
Earnings per share (EPS): |
|
|
|
|||
Basic net income per share |
$ |
0.52 |
|
|
$ |
0.65 |
Diluted net income per share |
$ |
0.52 |
|
|
$ |
0.65 |
|
|
|
|
|||
Cash dividends per common share |
$ |
0.19 |
|
|
$ |
0.18 |
|
|
|
|
|||
Weighted average shares: |
|
|
|
|||
Basic |
|
106.6 |
|
|
|
110.2 |
Diluted |
|
107.1 |
|
|
|
110.8 |
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(UNAUDITED) |
|||||||||
(Dollars in millions) |
|||||||||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
2024 |
|
2023 |
|
2023 |
|||
Assets: |
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
308.6 |
|
$ |
501.1 |
|
$ |
642.9 |
Trade accounts receivable, net |
|
|
946.1 |
|
|
936.0 |
|
|
599.5 |
Inventories |
|
|
957.2 |
|
|
1,055.1 |
|
|
940.8 |
Other current assets |
|
|
164.4 |
|
|
132.8 |
|
|
165.7 |
Property, plant and equipment, net |
|
|
1,943.7 |
|
|
1,930.0 |
|
|
1,961.6 |
Other assets, net |
|
|
3,254.3 |
|
|
3,306.7 |
|
|
3,300.7 |
Total assets |
|
$ |
7,574.3 |
|
$ |
7,861.7 |
|
$ |
7,611.2 |
|
|
|
|
|
|
|
|||
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|||
Current liabilities, excluding debt |
|
$ |
943.6 |
|
$ |
1,059.3 |
|
$ |
1,431.4 |
Current and long-term debt |
|
|
3,880.4 |
|
|
4,155.1 |
|
|
3,426.8 |
Other liabilities |
|
|
850.5 |
|
|
866.0 |
|
|
863.6 |
Stockholders' equity |
|
|
1,899.8 |
|
|
1,781.3 |
|
|
1,889.4 |
Total liabilities and stockholders' equity |
|
$ |
7,574.3 |
|
$ |
7,861.7 |
|
$ |
7,611.2 |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(UNAUDITED) |
||||||||
For the quarter ended |
||||||||
(Dollars in millions) |
||||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Cash flows provided by (used in) operating activities: |
|
|
|
|
||||
Net income |
|
$ |
55.2 |
|
|
$ |
72.0 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
66.4 |
|
|
|
64.9 |
|
Amortization of debt discount and debt issuance costs |
|
|
1.3 |
|
|
|
1.3 |
|
Rationalization charges |
|
|
11.7 |
|
|
|
4.1 |
|
Other changes that provided (used) cash: |
|
|
|
|
||||
Trade accounts receivable, net |
|
|
(355.6 |
) |
|
|
(271.2 |
) |
Inventories |
|
|
(22.3 |
) |
|
|
(280.0 |
) |
Trade accounts payable and other changes, net |
|
|
(304.5 |
) |
|
|
(222.8 |
) |
Net cash (used in) operating activities |
|
|
(547.8 |
) |
|
|
(631.7 |
) |
|
|
|
|
|
||||
Cash flows provided by (used in) investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(75.3 |
) |
|
|
(67.9 |
) |
Proceeds from asset sales |
|
|
2.5 |
|
|
|
0.4 |
|
Other investing activities |
|
|
0.3 |
|
|
|
0.5 |
|
Net cash (used in) investing activities |
|
|
(72.5 |
) |
|
|
(67.0 |
) |
|
|
|
|
|
||||
Cash flows provided by (used in) financing activities: |
|
|
|
|
||||
Dividends paid on common stock |
|
|
(21.1 |
) |
|
|
(20.6 |
) |
Changes in outstanding checks - principally vendors |
|
|
(160.6 |
) |
|
|
(61.4 |
) |
Shares repurchased under authorized repurchase program |
|
|
— |
|
|
|
(4.8 |
) |
Net borrowings and other financing activities |
|
|
474.4 |
|
|
|
697.2 |
|
Net cash provided by financing activities |
|
|
292.7 |
|
|
|
610.4 |
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(6.7 |
) |
|
|
3.8 |
|
|
|
|
|
|
||||
Cash and cash equivalents: |
|
|
|
|
||||
Net (decrease) |
|
|
(334.3 |
) |
|
|
(84.5 |
) |
Balance at beginning of year |
|
|
642.9 |
|
|
|
585.6 |
|
Balance at end of period |
|
$ |
308.6 |
|
|
$ |
501.1 |
|
|
|
|
|
|
|
||||||||
CONSOLIDATED SUPPLEMENTAL SEGMENT FINANCIAL DATA |
||||||||
(UNAUDITED) |
||||||||
For the quarter ended |
||||||||
(Dollars in millions) |
||||||||
|
|
|
|
|
||||
|
||||||||
|
|
|
||||||
|
|
2024 |
|
2023 |
||||
Net sales: |
|
|
|
|
||||
Dispensing and Specialty Closures |
|
$ |
535.9 |
|
|
$ |
579.9 |
|
Metal Containers |
|
|
617.1 |
|
|
|
670.1 |
|
Custom Containers |
|
|
164.0 |
|
|
|
168.3 |
|
Consolidated |
|
$ |
1,317.0 |
|
|
$ |
1,418.3 |
|
|
|
|
|
|
||||
Income before interest and income taxes (EBIT) |
|
|
|
|
||||
Dispensing and Specialty Closures |
|
$ |
59.7 |
|
|
$ |
70.9 |
|
Metal Containers |
|
|
41.7 |
|
|
|
47.8 |
|
Custom Containers |
|
|
17.8 |
|
|
|
18.5 |
|
Corporate |
|
|
(7.5 |
) |
|
|
(6.0 |
) |
Consolidated |
|
$ |
111.7 |
|
|
$ |
131.2 |
|
|
|||||||||||
RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE (1) |
|||||||||||
(UNAUDITED) |
|||||||||||
For the quarter ended |
|||||||||||
(Dollars and shares in millions, except per share amounts) |
|||||||||||
|
|
|
|
|
|
|
|
||||
Table A |
|||||||||||
|
|
|
|
||||||||
|
2024 |
|
2023 |
||||||||
|
Net |
|
Diluted |
|
Net |
|
Diluted |
||||
|
Income |
|
EPS |
|
Income |
|
EPS |
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
$ |
55.2 |
|
$ |
0.52 |
|
$ |
72.0 |
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
||||
Adjustments (a) |
|
18.0 |
|
|
0.17 |
|
|
14.4 |
|
|
0.13 |
Non- |
|
|
|
|
|
|
|
||||
$ |
73.2 |
|
$ |
0.69 |
|
$ |
86.4 |
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding - Diluted |
|
|
|
|
|
|
|
||||
|
|
|
107.1 |
|
|
|
|
110.8 |
|||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
(a) Adjustments consist of items in the table below |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
||||
Adjustments: |
|
|
|
||||
Acquired intangible asset amortization expense |
$ |
13.3 |
|
|
$ |
13.2 |
|
Other pension (income) expense for |
|
(1.2 |
) |
|
|
0.9 |
|
Rationalization charges |
|
11.7 |
|
|
|
4.1 |
|
Pre-tax impact of adjustments |
|
23.8 |
|
|
|
18.2 |
|
Tax impact of adjustments |
|
5.8 |
|
|
|
3.8 |
|
Net impact of adjustments |
$ |
18.0 |
|
|
$ |
14.4 |
|
|
|
|
|
||||
Weighted average number of common shares outstanding - Diluted |
|
|
|
||||
|
107.1 |
|
|
|
110.8 |
|
|
Diluted EPS impact from adjustments |
$ |
0.17 |
|
|
$ |
0.13 |
|
|
|
|
|
||||
Adjusted tax rate |
|
24.5 |
% |
23.3 |
% |
|
||||||||
RECONCILIATION OF ADJUSTED EBIT (2) |
||||||||
(UNAUDITED) |
||||||||
For the quarter ended |
||||||||
(Dollars in millions) |
||||||||
|
|
|
||||||
Table B |
||||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Dispensing and Specialty Closures: |
|
|
|
|
||||
Income before interest and income taxes (EBIT) |
|
$ |
59.7 |
|
|
$ |
70.9 |
|
Acquired intangible asset amortization expense |
|
|
11.9 |
|
|
|
11.8 |
|
Other pension (income) expense for |
|
|
(0.3 |
) |
|
|
0.1 |
|
Rationalization charges |
|
|
6.5 |
|
|
|
0.1 |
|
Adjusted EBIT |
|
$ |
77.8 |
|
|
$ |
82.9 |
|
|
|
|
|
|
||||
Metal Containers: |
|
|
|
|
||||
Income before interest and income taxes (EBIT) |
|
$ |
41.7 |
|
|
$ |
47.8 |
|
Acquired intangible asset amortization expense |
|
|
0.3 |
|
|
|
0.3 |
|
Other pension (income) expense for |
|
|
(0.6 |
) |
|
|
0.4 |
|
Rationalization charges |
|
|
3.6 |
|
|
|
3.9 |
|
Adjusted EBIT |
|
$ |
45.0 |
|
|
$ |
52.4 |
|
|
|
|
|
|
||||
Custom Containers: |
|
|
|
|
||||
Income before interest and income taxes (EBIT) |
|
$ |
17.8 |
|
|
$ |
18.5 |
|
Acquired intangible asset amortization expense |
|
|
1.1 |
|
|
|
1.1 |
|
Other pension (income) expense for |
|
|
(0.3 |
) |
|
|
0.4 |
|
Rationalization charges |
|
|
1.6 |
|
|
|
0.1 |
|
Adjusted EBIT |
|
$ |
20.2 |
|
|
$ |
20.1 |
|
|
|
|
|
|
||||
Corporate: |
|
|
|
|
||||
Loss before interest and income taxes (EBIT) |
|
$ |
(7.5 |
) |
|
$ |
(6.0 |
) |
Adjusted EBIT |
|
$ |
(7.5 |
) |
|
$ |
(6.0 |
) |
|
|
|
|
|
||||
Total adjusted EBIT |
|
$ |
135.5 |
|
|
$ |
149.4 |
|
|
|||||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE (1) |
|||||||||||||||||
(UNAUDITED) |
|||||||||||||||||
For the quarter and year ended, |
|||||||||||||||||
(Dollars and shares in millions, except per share amounts) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Table C |
|||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
Second Quarter, |
|
Year Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
Estimated |
|
Actual |
|
Estimated |
|
Actual |
||||||||||
|
Low |
|
High |
|
|
|
Low |
|
High |
|
|
||||||
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
75.9 |
|
$ |
86.6 |
|
$ |
78.9 |
|
$ |
330.6 |
|
$ |
352.0 |
|
$ |
326.0 |
Adjustments (a) |
|
11.8 |
|
|
11.8 |
|
|
12.8 |
|
|
49.6 |
|
|
49.6 |
|
|
45.5 |
Non- |
|
|
|
|
|
|
|
|
|
|
|
||||||
$ |
87.7 |
|
$ |
98.4 |
|
$ |
91.7 |
|
$ |
380.2 |
|
$ |
401.6 |
|
$ |
371.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
0.71 |
|
$ |
0.81 |
|
$ |
0.71 |
|
$ |
3.09 |
|
$ |
3.29 |
|
$ |
2.98 |
Adjustments (a) |
|
0.11 |
|
|
0.11 |
|
|
0.12 |
|
|
0.46 |
|
|
0.46 |
|
|
0.42 |
Non- |
|
|
|
|
|
|
|
|
|
|
|
||||||
$ |
0.82 |
|
$ |
0.92 |
|
$ |
0.83 |
|
$ |
3.55 |
|
$ |
3.75 |
|
$ |
3.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(a) Adjustments consist of items in the table below |
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter, |
|
Year Ended |
||||||||||
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
Estimated |
|
Actual |
|
Estimated |
|
Actual |
||||||
Adjustments: |
|
|
|
|
|
|
|
||||||
Acquired intangible asset amortization expense |
$ |
12.3 |
|
|
$ |
13.3 |
|
$ |
50.3 |
|
|
$ |
53.1 |
Other pension (income) expense for |
|
(1.2 |
) |
|
|
0.8 |
|
|
(4.8 |
) |
|
|
3.6 |
Rationalization charges |
|
4.5 |
|
|
|
2.7 |
|
|
20.2 |
|
|
|
8.4 |
Pre-tax impact of adjustments |
|
15.6 |
|
|
|
16.8 |
|
|
65.7 |
|
|
|
65.1 |
Tax impact of adjustments |
|
3.8 |
|
|
|
4.0 |
|
|
16.1 |
|
|
|
19.6 |
Net impact of adjustments |
$ |
11.8 |
|
|
$ |
12.8 |
|
$ |
49.6 |
|
|
$ |
45.5 |
|
|
|
|
|
|
|
|
||||||
Weighted average number of common shares outstanding - Diluted |
|
|
|
|
|
|
|
||||||
|
107.0 |
|
|
|
110.5 |
|
|
107.1 |
|
|
|
109.2 |
|
Diluted EPS impact from adjustments |
$ |
0.11 |
|
|
$ |
0.12 |
|
$ |
0.46 |
|
|
$ |
0.42 |
(1) The Company has presented adjusted net income per diluted share for the periods covered by this press release, which measure is a Non-GAAP financial measure. The Company’s management believes it is useful to exclude acquired intangible asset amortization expense, other pension (income) expense for
(2) The Company has presented adjusted EBIT for the periods covered by this press release, which measure is a Non-GAAP financial measure. The Company’s management believes it is useful to exclude acquired intangible asset amortization expense, other pension (income) expense for
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501610857/en/
Vice President, Investor Relations
AHutter@silgan.com
203-406-3187
Source: