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News

Bemis Company Reports Solid Fourth Quarter and 2018 Results

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Bemis Company, Inc. (NYSE:BMS) today reported financial results for its fourth quarter and year ended December 31, 2018. Refer to the reconciliation of Non-GAAP measures detailed in the attached schedule, including adjusted earnings per share, adjusted EBITDA, and net debt.

SUMMARY OF THE FOURTH QUARTER AND FULL YEAR 2018

   
Q4 Q4 YTD
($ in millions except per share amounts) 2018   2017   change 2018   2017   change
Earnings Per Share $ 0.70 $ (0.44 ) 259.1 % $ 2.36 $ 1.02 131.4 %
Adjusted Earnings Per Share $ 0.71 $ 0.63 12.7 % $ 2.79 $ 2.39 16.7 %
Cash from Operations $ 158.4 $ 79.5 99.2 % $ 461.5 $ 379.0 21.8 %
 
U.S. Packaging Operating Profit $ 89.7 $ 89.3 $ 0.4 $ 360.2 $ 352.5 $ 7.7
Latin America Packaging Operating Profit $ 7.8 $ 6.2 $ 1.6 $ 32.8 $ 30.0 $ 2.8
Rest of World Packaging Operating Profit $ 23.8 $ 15.4 $ 8.4 $ 81.2 $ 61.1 $ 20.1
 

Refer to the reconciliation of Non-GAAP measures detailed in the attached schedule, including adjusted earnings per share, referenced in this release.

 

We delivered strong earnings and operating cash flow improvement in 2018. Our Agility plan to fix, strengthen, and grow Bemis is progressing well and benefiting our business, said William F. Austen, Bemis Companys President and Chief Executive Officer. All operating segments performed in-line with our expectations and met our Agility objectives during 2018. In our U.S. business, we focused on improving operations and laying the foundation for long-term growth through our Agile Lane initiative to penetrate short-run business. Our teams in the U.S. worked tirelessly to deliver our financial plans in light of both known and incremental headwinds during the year. In our Latin American business, we continued to execute cost improvements in light of the challenging economic environment in Brazil and delivered 100 basis points of margin expansion during the year. In our Rest of World business, we delivered 200 basis points of operating profit improvement in 2018, driven by solid operational performance across the segment and strong organic sales growth in our healthcare packaging business.

Austen concluded, I am proud of our teams and the countless operational, commercial, and administrative improvements we executed in 2018 to drive long-term benefit in our business. We are well-positioned to continue progressing in 2019.

AGILITY PROGRESS

As part of the Companys previously-announced improvement plan called Agility to fix, strengthen, and grow its business, the fix aspect of this plan includes a restructuring and cost savings target of $65 million pre-tax by the end of 2019. Agility-related cost savings were approximately $9 million during the fourth quarter of 2018, for a full year total of $35 million, in line with the Companys expectations. Additionally, in relation to the strengthen and grow aspects of Agility, the Company reached its 2018 internal targets for growth of short-run business.

PROPOSED COMBINATION WITH AMCOR

On August 6, 2018, Bemis announced a plan for an all-stock combination with Amcor to create the global leader in consumer packaging with the footprint, scale, talent, and capabilities to better serve customers around the world, drive significant value for shareholders, create enhanced opportunities for employees, and deliver the most sustainable innovations for the environment.

Austen stated, We believe combining these two organizations will drive significant value for shareholders, employees, and customers over the long-term. Bemis shareholders will have the opportunity to benefit from the expected increased dividend, which nearly doubles from Bemis current dividend, and the value creation driven from not only the $180 million of cost synergies identified as part of the transaction but also additional potential revenue synergies.

Austen continued, As announced in our press release last week, we anticipate the transaction will close in the second quarter of 2019. Over the past several months, our integration planning teams have made great progress to ensure the framework is set to support a smooth transition on the first day of the new Amcor, as well as the days and months that follow. For Bemis, this is the next exciting chapter in our evolution. We look forward to creating the global leader in consumer packaging through this transaction.

During the fourth quarter and full year 2018, Bemis recorded approximately $4 million and $14 million, respectively, of costs related to the planned transaction with Amcor. Bemis adjusted earnings per share metric excludes certain costs, charges and other items, including these transaction-related costs.

BUSINESS SEGMENT RESULTS

U.S. Packaging

Fourth Quarter 2018

U.S. Packaging net sales of $660.4 million for the fourth quarter of 2018 represented an increase of 2.7 percent compared to the same period of 2017. The increase in net sales was driven by price and mix. Compared to the prior fourth quarter, unit volumes were down approximately one percent, driven by the Companys planned exit of infant care business at its Shelbyville, Tennessee facility.

U.S. Packaging operating profit was $89.7 million in the fourth quarter of 2018, or 13.6 percent of net sales, compared to $89.3 million, or 13.9 percent of net sales, in 2017. Operating profit in the fourth quarter of 2018 included the benefits of cost savings from the Companys Agility plan and improved operations, offset by the impact of customer incentives and the employee pay-for-performance plan.

Full Year 2018

U.S. Packaging net sales of $2,698.5 million for the full year 2018 represented an increase of 2.8 percent compared to 2017. The increase in net sales was driven by price and mix. Compared to the prior year, unit volumes were down approximately one percent, driven by the Companys planned exit of infant care business at its Shelbyville, Tennessee facility.

U.S. Packaging operating profit increased to $360.2 million for the full year 2018, or 13.3 percent of net sales, compared to $352.5 million, or 13.4 percent of net sales, in 2017. Operating profit in 2018 included the benefit of cost savings from the Companys Agility plan and improved operations, partially offset by the impact of freight costs, customer incentives, and the employee pay-for-performance plan.

Latin America Packaging

Fourth Quarter 2018

Latin America Packaging net sales of $152.4 million for the fourth quarter of 2018 represented a decrease of 14.7 percent compared to the same period of 2017. Currency translation and the impact of implementing high inflation accounting in the Companys business in Argentina decreased net sales by 22.6 percent. Organic sales growth of 7.9 percent reflects improved sales price and mix, partially offset by decreased unit volumes of approximately 16 percent driven primarily by the exit of some laundry detergent packaging volume in Brazil that is converting to another packaging format.

Latin America Packaging operating profit increased to $7.8 million in the fourth quarter of 2018, or 5.1 percent of net sales, compared to $6.2 million, or 3.5 percent of net sales, in 2017. The net impact of currency translation decreased operating profit during the fourth quarter by $1.2 million. Additionally, the implementation of high inflation accounting in the Companys Argentina business negatively impacted operating profit by $0.9 million during the fourth quarter of 2018. The remaining $3.7 million increase in Latin America Packaging operating profit was driven by variable and fixed cost savings actions implemented in light of the challenging economic environment in Brazil and the Companys Agility plan, partially offset by the impact of decreased volume.

Full Year 2018

Latin America Packaging net sales of $628.6 million for the full year 2018 represented a decrease of 11.6 percent compared to the full year of 2017. Currency translation and the impact of implementing high inflation accounting in the Companys business in Argentina decreased net sales by 16.1 percent. Organic sales growth of 4.5 percent reflects improved sales price and mix, partially offset by decreased unit volumes of approximately 10 percent driven primarily by the exit of some laundry detergent packaging volume in Brazil that is converting to another packaging format.

Latin America Packaging operating profit increased to $32.8 million for the full year 2018 compared to $30.0 million in 2017. The net impact of currency translation decreased operating profit during 2018 by $4.8 million. Additionally, the implementation of high inflation accounting in the Companys Argentina business negatively impacted operating profit by $2.2 million during 2018. The remaining $9.8 million increase in Latin America Packaging operating profit during 2018 was driven by variable and fixed cost savings actions implemented in light of the challenging economic environment in Brazil and the Companys Agility plan, partially offset by the impact of decreased volume.

Rest of World Packaging

Fourth Quarter 2018

Rest of World Packaging net sales of $190.0 million for the fourth quarter of 2018 represented an increase of 4.6 percent compared to the fourth quarter of 2017. Currency translation decreased net sales by 2.6 percent. The acquisition of Evadix increased net sales by 0.3 percent. Organic sales growth of 6.9 percent reflects increased price and mix, partially offset by decreased unit volumes of approximately 3 percent, driven by comparison to an exceptionally strong fourth quarter of 2017 in the Companys Asia Pacific business.

Rest of World Packaging operating profit increased to $23.8 million in the fourth quarter of 2018, or 12.5 percent of net sales, compared to $15.4 million, or 8.5 percent of net sales, in 2017. The net impact of currency translation decreased operating profit during the fourth quarter by $0.4 million. The increase in operating profit in Rest of World Packaging was driven by strong operational performance and increased sales volume in the Companys healthcare packaging business.

Full Year 2018

Rest of World Packaging net sales of $762.8 million for the full year 2018 represented an increase of 7.6 percent compared to the full year of 2017. Currency translation increased net sales by 2.4 percent. The acquisition of Evadix increased net sales by 0.9 percent. Organic sales growth of 4.3 percent reflects increased price and mix and increased unit volumes of approximately 3 percent, driven by strength in the Companys healthcare packaging business.

Rest of World Packaging operating profit for the full year 2018 was $81.2 million, compared to $61.1 million for the same period in 2017. The net impact of currency translation increased operating profit during 2018 by $1.2 million. The remaining increase in operating profit in Rest of World Packaging was driven by strong operational performance and increased sales volume in the Companys healthcare packaging business.

BRAZIL TAX LITIGATION DECISION

During the fourth quarter of 2018, the Company received a favorable decision from the Federal Court of Appeals in Sao Paulo, Brazil, related to the payment of certain indirect taxes in prior years. As a result of this decision, the Company expects to be entitled to credits against Brazilian federal tax payments in future years. The Company is currently evaluating the value of the credits, including calculating the amount of the credits, as well as any related income tax and indirect tax expense. The details involved are complex and fluid as there are pending decisions with the Brazilian courts which may result in changes to the benefit calculation and timing of receipt of benefits. The Company anticipates completing a preliminary valuation with assistance of outside counsel prior to the filing of Form 10-K for the year ended December 31, 2018. As such, the impact is not reflected in the results reported in this press release but may be reflected in such filing. At that time, Bemis intends to exclude the impact of this unusual item from its adjusted earnings per share metric.

CASH FLOW AND CAPITAL STRUCTURE

Cash flow from operations for the twelve months ended December 31, 2018 was $461.5 million, compared to $379.0 million in the prior year. Increased profit and working capital improvements contributed to the increase in cash flow from operations.

Total company net debt to adjusted EBITDA was 2.2 times at December 31, 2018.

Capital expenditures totaled $143.5 million for the twelve months ended December 31, 2018, slightly lower than the Companys expectations due to timing of projects.

OUTLOOK

Due to the pending merger with Amcor, Bemis Company will not be issuing 2019 guidance.

PRESENTATION OF NON-GAAP INFORMATION

This press release refers to non-GAAP financial measures: adjusted diluted earnings per share, organic sales growth or decline, adjusted EBITDA and net debt to adjusted EBITDA, and adjusted return on invested capital. These non-GAAP financial measures adjust for factors that are unusual or unpredictable. These measures exclude the impact of certain amounts related to the effect of changes in currency exchange rates, acquisitions, and restructuring, including employee-related costs, equipment relocation costs, accelerated depreciation and the write-down of equipment. These measures also exclude gains or losses on sales of significant property and divestitures, certain litigation matters, and certain acquisition-related expenses, including transaction expenses, due diligence expenses, professional and legal fees, purchase accounting adjustments for inventory and order backlog and changes in the fair value of deferred acquisition payments. This adjusted information should not be construed as an alternative to results determined in accordance with accounting principles generally accepted in the United States of America (GAAP). Management of the Company uses the non-GAAP measures to evaluate operating performance and believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. All historical non-GAAP information is reconciled with reported GAAP results.

FORWARD-LOOKING STATEMENTS

This release contains certain estimates, predictions, and other forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements are generally identified with the words believe, expect, likely, anticipate, intend, estimate, target, may, will, plan, project, should, continue, or the negative thereof or other similar expressions, or discussion of future goals or aspirations, which are predictions of or indicate future events and trends and which do not relate to historical matters. Such statements are based on information available to management as of the time of such statements and relate to, among other things, expectations of the business environment in which we operate, projections of future performance (financial and otherwise), including those of acquired companies, perceived opportunities in the market and statements regarding our strategy and vision. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Factors that could cause actual results to differ from those expected include, but are not limited to:

  • Our pending merger with Amcor, including uncertainties as to the timing of completion, the risk that the merger may not be completed in a timely manner or at all, and the risk that our shareholders cannot be certain of the value of the consideration they will receive;
  • The ability of our foreign operations to maintain working efficiencies, as well as properly adjust to continuing changes in global politics, legislation, and economic conditions;
  • A failure to realize the full potential of our restructuring activities;
  • Changes in the competitive conditions within our markets, as well as changes in the demand for our goods;
  • Changes in the value of our goodwill and other intangible assets;
  • Our ability to retain and build upon the relationships and sales of our key customers;
  • The potential loss of business or increased costs due to customer or vendor consolidation;
  • The costs, availability, and terms of acquiring our raw materials (particularly for polymer resins and adhesives), as well as our ability to pass any price changes on to our customers;
  • Changes in import and export regulation that could subject us to liability or impair our ability to compete in international markets;
  • Variances in key exchange rates that could affect the translation of the financial statements of our foreign entities;
  • Our ability to effectively implement and update our global enterprise resource planning (“ERP”) systems;
  • Our ability to realize the benefits of our acquisitions and divestitures, and whether we are able to properly integrate those businesses we have acquired;
  • Fluctuations in interest rates and our borrowing costs, along with other key financial variables;
  • A potential failure in our information technology infrastructure or applications and their ability to protect our key functions from cyber-crime and other malicious content;
  • Changes in our credit rating;
  • Unexpected outcomes in our current and future administrative and litigation proceedings;
  • Changes in governmental regulations, particularly in the areas of environmental, health and safety matters, fiscal incentives, and foreign investment;
  • Our ability to effectively introduce new products into the market and to protect or retain our intellectual property rights;
  • Changes in our ability to attract and retain high performance employees; and
  • Our ability to manage all costs and the funded status associated with our pension plans.

These and other risks, uncertainties, and assumptions identified from time to time in our filings with the Securities and Exchange Commission, including without limitation, those described under Item 1A “Risk Factors” of our Annual Report on Form 10-K and our quarterly reports on Form 10-Q, could cause actual future results to differ materially from those projected in the forward-looking statements. In addition, actual future results could differ materially from those projected in the forward-looking statements as a result of changes in the assumptions used in making such forward-looking statements.

LEGAL DISCLOSURES

No Offer or Solicitation

This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.

Important Additional Information Will Be Filed with the SEC

In connection with the contemplated transactions, New Amcor intends to file a registration statement on Form S-4 with the SEC that will include a joint proxy statement of Bemis and prospectus of New Amcor. The joint proxy statement/prospectus will also be sent or given to Bemis shareholders and will contain important information about the contemplated transactions. Shareholders are urged to read the joint proxy statement/prospectus and other relevant documents filed or to be filed with the SEC carefully when they become available because they will contain important information about Bemis, Amcor, New Amcor, the contemplated transactions, and related matters. Investors and shareholders will be able to obtain free copies of the joint proxy statement/prospectus (when available) and other documents filed with the SEC by Bemis, Amcor, and New Amcor through the SECs website (www.sec.gov).

Participants in the Solicitation

Bemis, Amcor, New Amcor, and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Bemis shareholders in connection with the contemplated transactions. Information about Bemis directors and executive officers is set forth in its proxy statement for its 2018 Annual Meeting of Shareholders and its annual report on Form 10-K for the fiscal year ended December 31, 2017, which may be obtained for free at the SECs website (www.sec.gov). Information about Amcors directors and executive officers is set forth in its Annual Report 2018, which may be obtained for free at ASXs website (www.asx.com.au). Additional information regarding the interests of participants in the solicitation of proxies in connection with the contemplated transactions will be included in the joint proxy statement/prospectus that New Amcor intends to file with the SEC.

INVESTOR CONFERENCE CALL

Bemis Company, Inc. will webcast an investor telephone conference regarding its fourth quarter and full year 2018 financial results this morning at 10:00 a.m., Eastern Time today, January 31, 2019. The Company requests callers to limit their questions to those pertaining to the core Bemis business and refrain from questions relating to the pending merger with Amcor. Individuals may listen to the call on the Internet at www.bemis.com under Investor Relations. Listeners are urged to check the website ahead of time to ensure their computers are configured for the audio stream. Instructions for obtaining the required, free, downloadable software are available in a pre-event system test on the site.

ABOUT BEMIS COMPANY, INC.

Bemis Company, Inc. (Bemis or the Company) is a supplier of flexible and rigid plastic packaging used by leading food, consumer products, healthcare, and other companies worldwide. Founded in 1858, Bemis reported 2018 net sales of approximately $4.1 billion. Bemis has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Headquartered in Neenah, Wisconsin, Bemis employs approximately 16,000 individuals worldwide. More information about Bemis is available at our website, www.bemis.com.

 

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(in millions, except per share amounts)

(unaudited)

 
 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2018   2017   2018   2017
Net sales $ 1,002.8 $ 1,003.6 $ 4,089.9 $ 4,046.2
Cost of products sold (1) 802.4   809.8   3,284.8   3,260.0  
Gross profit 200.4 193.8 805.1 786.2
 
Operating expenses:
Selling, general and administrative expenses (1) 93.3 94.7 377.9 385.2
Research and development costs 9.3 9.3 38.0 42.9
Restructuring and other costs (1) 11.4 19.3 61.9 60.4
Goodwill impairment charge 196.6 196.6
Other operating income (5.0 ) (7.0 ) (16.4 ) (20.9 )
 
Operating income 91.4 (119.1 ) 343.7 122.0
 
Interest expense 19.6 17.1 76.1 65.8
Other non-operating income (1) (0.7 ) 8.5   (2.8 ) 3.5  
 
Income before income taxes 72.5 (144.7 ) 270.4 52.7
 
Provision for income taxes 8.7   (104.0 ) 54.8   (41.3 )
 
Net income $ 63.8   $ (40.7 ) $ 215.6   $ 94.0  
 
Basic earnings per share $ 0.71   $ (0.44 ) $ 2.37   $ 1.03  
 
Diluted earnings per share $ 0.70   $ (0.44 ) $ 2.36   $ 1.02  
 
Cash dividends paid per share $ 0.31   $ 0.30   $ 1.24   $ 1.20  
 
Weighted average shares outstanding:
Basic 91.0 90.8 91.0 91.5
Diluted 91.9 91.2 91.5 91.9
 
  (1)   Prior year information has been recast to reflect the adoption of pension accounting changes during the first quarter of 2018 and conform to current year presentation.
 
(2)

The fourth quarter of 2018 includes a $8.2 million benefit related to final refinements of the Tax Cuts and Jobs Act of 2017. This benefit is excluded from the Companys calculation of adjusted earnings per share. Please see footnote 4 of the attached Reconciliation of Non-GAAP EPS for details.

 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(in millions)

(unaudited)

 
 

December 31, 2018

 

December 31, 2017

ASSETS

 
 
Cash and cash equivalents $ 76.1 $ 71.1
Trade receivables 443.3 448.7
Inventories 619.5 620.2
Prepaid expenses and other current assets 80.4   97.1  
Total current assets 1,219.3   1,237.1  
 
Property and equipment, net 1,250.3   1,318.1  
 
Goodwill 845.2 852.7
Other intangible assets, net 121.4 142.3
Deferred charges and other assets 119.5   149.7  
Total other long-term assets 1,086.1   1,144.7  
 
TOTAL ASSETS $ 3,555.7   $ 3,699.9  
 

LIABILITIES

 
Current portion of long-term debt $ 1.8 $ 5.0
Short-term borrowings 10.2 16.0
Accounts payable 515.9 477.2
Employee-related liabilities 94.3 73.1
Accrued income and other taxes 28.1 30.5
Other current liabilities 46.1   64.3  
Total current liabilities 696.4   666.1  
 
Long-term debt, less current portion 1,348.6 1,542.4
Deferred taxes 166.7 153.5
Other liabilities and deferred credits 138.2   136.7  
 
TOTAL LIABILITIES 2,349.9   2,498.7  
 

EQUITY

 
Common stock issued (129.3 and 129.1 shares, respectively) 12.9 12.9
Capital in excess of par value 604.2 590.4
Retained earnings 2,446.6 2,324.8
Accumulated other comprehensive loss (525.5 ) (394.5 )
Common stock held in treasury (38.3 shares at cost) (1,332.4 ) (1,332.4 )
 
TOTAL EQUITY 1,205.8   1,201.2  
 
TOTAL LIABILITIES AND EQUITY $ 3,555.7   $ 3,699.9  
 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in millions)

(unaudited)

 
  Twelve Months Ended December 31,
2018   2017

Cash flows from operating activities

Net income $ 215.6 $ 94.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 167.6 169.8
Goodwill impairment charge 196.6
Share-based compensation 19.6 17.4
Deferred income taxes 25.5 (131.2 )
Income of unconsolidated affiliated company (2.3 ) (2.9 )
Cash dividends received from unconsolidated affiliated company 2.7
Net loss on disposal of property and equipment (0.1 ) 6.6
Changes in working capital, excluding effect of currency 32.9 15.6
Changes in other assets and liabilities   13.1  
 
Net cash provided by operating activities 461.5   379.0  
 

Cash flows from investing activities

Additions to property and equipment (143.5 ) (188.5 )
Business acquisitions and adjustments, net of cash acquired (3.9 )
Proceeds from sale of property and equipment 3.6   14.5  
 
Net cash used in investing activities (139.9 ) (177.9 )
 

Cash flows from financing activities

Proceeds from issuance of long-term debt 2.2
Repayment of long-term debt (4.2 )
Net borrowing (repayment) of commercial paper (188.2 ) 17.0
Net repayment of short-term debt (6.1 ) (3.0 )
Cash dividends paid to shareholders (113.8 ) (111.2 )
Common stock purchased for the treasury (103.8 )
Stock incentive programs and related tax withholdings (5.8 ) (8.5 )
 
Net cash used in financing activities (318.1 ) (207.3 )
 
Effect of exchange rates on cash and cash equivalents 1.5   3.1  
 
Net increase (decrease) in cash and cash equivalents 5.0 (3.1 )
 
Cash and cash equivalents balance at beginning of year 71.1   74.2  
 
Cash and cash equivalents balance at end of period $ 76.1   $ 71.1  
 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

SEGMENT SALES AND PROFIT INFORMATION

(unaudited)

 
  Three Months Ended December 31,   Twelve Months Ended December 31,
2018   2017   2018   2017
Net sales
U.S. Packaging (a) $ 660.4 $ 643.3 $ 2,698.5 $ 2,626.0
Latin America Packaging (b) 152.4 178.7 628.6 711.4
Rest of World Packaging (c) 190.0   181.6   762.8   708.8  
Total net sales $ 1,002.8   $ 1,003.6   $ 4,089.9   $ 4,046.2  
 
Segment operating profit
U.S. Packaging (d) $ 89.7 $ 89.3 $ 360.2 $ 352.5
Latin America Packaging (e) 7.8 6.2 32.8 30.0
Rest of World Packaging (f) 23.8 15.4 81.2 61.1
 
Restructuring and other costs 11.4 19.3 61.9 60.4
Goodwill impairment charge 196.6 196.6
General corporate expenses 18.5   14.1   68.6   64.6  
 
Operating income 91.4 (119.1 ) 343.7 122.0
 
Interest expense 19.6 17.1 76.1 65.8
Other non-operating income (0.7 ) 8.5   (2.8 ) 3.5  
 
Income before income taxes $ 72.5   $ (144.7 ) $ 270.4   $ 52.7  
 
 
Operating profit return on sales
U.S. Packaging (d / a) 13.6 % 13.9 % 13.3 % 13.4 %
Latin America Packaging (e / b) 5.1 % 3.5 % 5.2 % 4.2 %
Rest of World Packaging (f / c) 12.5 % 8.5 % 10.6 % 8.6 %
 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

SEGMENT SALES AND PROFIT INFORMATION

(unaudited)

 
Components of changes in net sales  

Q4 2018 % Change YoY

           

Q4 2018 YTD % Change YoY

U.S Packaging:
Organic sales growth (decline) * 2.7 % 2.8 %
U.S. Packaging 2.7 % 2.8 %
 
Latin America Packaging:
Currency effect (22.6 )% (16.1 )%
Organic sales growth (decline) * 7.9 % 4.5 %
Latin America Packaging (14.7 )% (11.6 )%
 
Rest of World Packaging:
Currency effect (2.6 )% 2.4 %
Acquisition effect 0.3 % 0.9 %
Organic sales growth (decline) * 6.9 % 4.3 %
Rest of World Packaging 4.6 % 7.6 %
 
Total Company:
Currency effect (4.6 )% (2.4 )%
Acquisition effect 0.1 % 0.2 %
Organic sales growth (decline) * 4.4 % 3.3 %
Total change in net sales (0.1 )% 1.1 %
 
*Organic sales growth (decline) = sum of price, mix, and volume
 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP EARNINGS PER SHARE AND NET DEBT

(in millions, except per share amounts)

(unaudited)

 
 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2018   2017 2018   2017
Non-GAAP earnings per share
Diluted earnings per share, as reported $ 0.70 $ (0.44 ) $ 2.36 $ 1.02
 
Non-GAAP adjustments per share, net of taxes:
Restructuring and related costs (1) 0.05 0.12 0.38 0.42
Goodwill impairment charge (2) 1.59 1.59
Pension settlement charge (3) 0.08 0.08
Tax reform (4) (0.09 ) (0.74 ) (0.09 ) (0.74 )
Other costs (5) 0.05   0.02   0.14   0.02  
 
Diluted earnings per share, as adjusted $ 0.71   $ 0.63   $ 2.79   $ 2.39  
  (1)   Restructuring and related costs include the 2016 restructuring plan focused on plant closures in Latin America and the 2017 restructuring plan focused on aligning the Company’s cost structure to its environment. Restructuring related costs primarily include professional fees for consultants.
 
(2) The Company recognized a non-cash goodwill impairment charge related to the Latin America Packaging segment. This impairment is a result of the impact on profits from the decline in the economic environment in Brazil during 2017 and the related forecasted slower economic recovery. The impairment charge recognized by the Company was $196.6 million pre-tax and $145.5 million, net of taxes.
 
(3) The Company initiated a program during the third quarter of 2017 in which it offered terminated vested participants in the U.S. qualified retirement plans the opportunity to receive their benefits early as a lump sum. The Company recognized a $10.1 million pre-tax pension settlement charge in the fourth quarter of 2017. This charge was $6.8 million, net of taxes.
 
(4) On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (TCJA”) was signed by the President of the United States and became enacted law. The Company recognized a $67.2 million non-cash tax benefit in the fourth quarter of 2017. This benefit is due to the revaluation of deferred tax assets and liabilities from the change in the U.S. Federal statutory tax rate from 35 percent to 21 percent netted against the increase to taxes from the one-time transition tax on unremitted earnings. Amounts reported in 2018 reflect final refinements related to the impact of the TCJA based upon regulations promulgated during 2018.
 
(5) In 2018, other costs include costs related to the pending transaction with Amcor. In 2017, others costs are comprised of acquisition costs and hurricane-related expenses incurred at the Puerto Rico facility.
 
   
 
December 31, 2018   December 31, 2017
Net Debt
Current portion of long-term debt $ 1.8 $ 5.0
Short-term borrowings 10.2 16.0
Long-term debt, less current portion 1,348.6   1,542.4  
Total debt 1,360.6 1,563.4
Less cash and cash equivalents (76.1 ) (71.1 )
Net debt $ 1,284.5   $ 1,492.3  
 
 

BEMIS COMPANY, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP RETURN ON INVESTED CAPITAL AND EBITDA

(in millions)

(unaudited)

 
  Three Months Ended  

12 months ended December 31, 2018

December 31, 2018

 

September 30, 2018

 

June 30, 2018

 

March 31, 2018

 
Net income (loss) $ 63.8   $ 57.5   $ 46.7   $ 47.6   $ 215.6
Income taxes 8.7 17.2 14.0 14.9 54.8
Interest expense 19.6 18.9 18.7 18.9 76.1
Other non-operating (income) expense (0.7 ) (0.5 ) (0.7 ) (0.9 ) (2.8 )
Earnings before interest and taxes (EBIT) 91.4 93.1 78.7 80.5 343.7
Restructuring and other costs 11.4   16.1   21.0   13.4   61.9  
Adjusted EBIT (a) 102.8 109.2 99.7 93.9 405.6
Depreciation and amortization 41.1   40.8   42.5   43.2   167.6  
Adjusted EBITDA $ 143.9   $ 150.0   $ 142.2   $ 137.1   $ 573.2  
 
Average Invested Capital(1) (b) $ 2,627.5
Assumed tax rate(2) (c) 24.0 %
Adjusted ROIC (a * (1 – c) / b) 11.7 %
 
   
Three Months Ended  

12 months ended December 31, 2017

December 31, 2017

 

September 30, 2017

 

June 30, 2017

 

March 31, 2017

 
Net income $ (40.7 )   $ 55.6   $ 28.0   $ 51.1 $ 94.0
Income taxes (104.0 ) 26.4 13.1 23.2 (41.3 )
Interest expense 17.1 16.7 16.0 16.0 65.8
Other non-operating (income) expense(3) 8.5   (1.7 ) (1.4 ) (1.9 ) 3.5  
Earnings before interest and taxes (EBIT)(3) (119.1 ) 97.0 55.7 88.4 $ 122.0
Restructuring and other costs(3) 19.3 12.9 23.8 4.4 60.4
Goodwill impairment charge 196.6         196.6  
Adjusted EBIT(3) (a) 96.8 109.9 79.5 92.8 379.0
Depreciation and amortization 42.3   42.5   43.2   41.8   169.8  
Adjusted EBITDA(3) $ 139.1   $ 152.4   $ 122.7   $ 134.6   $ 548.8  
 
Average Invested Capital(1) (b) $ 2,743.3
Assumed tax rate(2) (c) 24.0 %
Adjusted ROIC (a * (1 – c) / b) 10.5 %
 
  (1)   Average invested capital includes all equity and debt amounts, less cash, calculated on a five-quarter average.
 
(2) The tax rate used approximates the U.S. federal and state statutory rates. For comparative purposes, a consistent tax rate has been used for all periods presented.
 
(3) Prior year information has been recast to reflect the adoption of pension accounting changes and conform to current year presentation.
 

For additional information please contact:
Erin M. Winters
Director
of Investor Relations

(920) 527-5288

News

Suncity Group Named Title Sponsor for Local Arts Events

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Fully Supports Macau’s Cultural Industry and the Recovery of Macau

 

MACAU, CHINA – Media OutReach – 20 September 2020 – To revitalize the development of Macau’s cultural industry, Suncity Group fully supports the local arts event, rooting for Macau citizens and local artists through series of astonishing and diversified music entertaining events. ‘Suncity Group Rooting for Macau – SIM! Music Festival 2020’ is the first musical performance of series events title sponsored by Suncity Group, ended perfectly at the Cotai Arena, Venetian Macau on September 19.

[View Image]

Maria Helena de Senna Fernandes, Director of Macau Government Tourist Office, Mr. Kevin Ho, Macau Deputy to the National People’s Congress of PRC, Mr. Alvin Chau, Chief Executive Officer and Director of Suncity Group and President of Macau Artistes Association, Dr. Wilfred Wong, President and Executive Director of Sands China Ltd. attended the event 

‘Best Performance Award’ was awarded to Classic heritage- The Final Trigger by Mr. Alvin Chau

[View Image]

Local singers, artists, dancers and more than 200 people from the industry were assembled to organise this music festival

 

With the purpose of ‘reigniting the local performing arts power’, a group of outstanding local singers, artists, dancers and more than 200 people from the industry were assembled to organise this music festival. A total of 12 units did their utmost to compete in the same stage with singing and dancing. There was no cessation to the excitement and the symphony of applause and cheers in the whole night.

 

The organisers have specially invited Mr. Kevin Ho, Macau Deputy to the National People’s Congress of PRC, Dr. Wilfred Wong, President and Executive Director of Sands China Ltd., Mr. Alvin Chau, Chief Executive Officer and Director of Suncity Group and President of Macau Artistes Association to serve as adjudicators and presenters, witnessing and supporting this diversified music festival that belongs to Macau with the other officiating guests. It shot in the arm of Macau’s cultural industry which has been gradually recovering after the pandemic. After a series of stiff competitions and wonderful performances by the participating units, the ‘Best Styling Award’ went to Walk with Scamper, the ‘Best Teamwork Award’ was awarded to Girls Rock, the ‘Best Positive Energy’ was given to Bacalhau Talkshow & Band, and finally the ‘Best Performance Award’ was awarded to Classic heritage- The Final Trigger by Mr. Alvin Chau.

 

Mr. Chau said, ‘2020 is the year full of difficulties. With the impact of the pandemic, performing arts and cultural industries in mainland China and Macau have been hard hit. Most of the large-scale musical performances have also been suspended. “Suncity Group Rooting for Macau – SIM! Music Festival 2020” as the first music festival of this year, it undoubtedly brings more positive energy to Macau society as well as the cultural industry, pro-actively supporting the development of Macau’s industrial diversification.’

 

As the first extraordinary music feast of series events ended, ‘Suncity Group Rooting for Macau – SIM! Full Band festival 2020’, also title sponsored by Suncity Group, comes immediately thereafter and will be held on September 26. 13 teams of local rock bands will spare no effort to inspire local Macau citizens and awaken their rocking soul. There are also DJ performances, cold beer and snacks at that night, creating a diversified and dynamic rock music festival with hyper performances and mouth-watering delicacies. It once again roots for the recovery of Macau’s economy.

 

As an enterprise rooted in Macau, Suncity Group is committed to the motherland and Macau. With actively fulfilling its social responsibilities, the Group strives to support the recovery of cultural industry in mainland China and Macau as well as the diversified development of Macau in cooperating to national policies and long-term development of China. Through the title sponsorship of the series arts events, Suncity Group hopes to bring more positive energy and get the uptick of confidence to the Macau society.

 

High-resolution images can be downloaded in the gallery:

https://dropbox.suncity-group.com/url/0919sim

About Suncity Group

Suncity Group was founded in 2007. Since establishment, Suncity Group has been striving to provide the extraordinary VIP entertainment service for our guests, and we then opened a number of VIP Clubs in various 6-star hotels and resorts throughout Macau with the rapid growth of our business. Meanwhile, we successively set up exclusive VIP Clubs in Manila, Seoul, Incheon, Phnom Penh and Da Nang, etc.

 

Adhering to the spirit of “Innovating With Diversity, Striving For Success”, Suncity Group spared no effort to develop high-end entertainment services and products as well as roll out global VIP loyalty program for the selected members to enjoy entertainment, travel, catering services, luxury shopping and motion picture. Today, the scope of our business covers most sectors, especially in the fields of global travel, film production, concert and event planning, catering and luxury goods.

 

As a Macau born and bred enterprise, Suncity Group is not only devoted to develop the Asian market, but also oriented to expand the global network. In the future, we will surely continue to diversify our VIP entertainment services, attract more exclusive members and make every effort to promote our business in every corner of the world.

 

Official Website | www.suncitygroup.com.mo/en

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CNOOC Limited Announces Commencement of Production at Liuhua 16-2 Oilfield / 20-2 Oilfield Joint Development Project

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HONG KONG, Sept. 20, 2020 /PRNewswire/ — CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that Liuhua 16-2 oilfield/ 20-2 oilfield joint development project has commenced production.

Liuhua 16-2 oilfield / 20-2 oilfield joint development project is located in Eastern South China Sea. The average water depth of the joint development project is approximately 410 meters.  One 150,000 DWT FPSO and three underwater production systems are newly built. A total of 26 development wells are planned to be put into production and development. The project is expected to reach its peak production of approximately 72,800 barrels of crude oil per day in 2022.

CNOOC Limited holds 100% interest of Liuhua 16-2 oilfield/ 20-2 oilfield joint development project.

– End –

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

*** *** *** ***

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company’s expectations, including but not limited to those associated with fluctuations in crude oil and natural gas prices, macro-political and economic factors, changes in the tax and fiscal regimes of the host countries in which we operate, the highly competitive nature of the oil and natural gas industry, the exploration and development activities, mergers, acquisitions and divestments activities, environmental responsibility and compliance requirements, foreign operations and cyber system attacks.  For a description of these and other risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the Annual Report on Form 20-F filed in April of the latest fiscal year.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.

*** *** *** ***

For further enquiries, please contact:

Ms. Jing Liu
Manager, Media & Public Relations
CNOOC Limited
Tel: +86-10-8452-3404
Fax: +86-10-8452-1441
E-mail: [email protected]

Ms. Ada Leung 
Hill+Knowlton Strategies Asia
Tel: +852-2894-6225
Fax: +852-2576-1990
E-mail: [email protected]

Photo – https://photos.prnasia.com/prnh/20200911/2914374-1LOGO?lang=0

 

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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Odonate Therapeutics, Inc. of Class Action Lawsuit and Upcoming Deadline – ODT

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NEW YORK, Sept. 19, 2020 — Pomerantz LLP announces that a class action lawsuit has been filed against Odonate Therapeutics, Inc.  (“Odonate” or the “Company”) (NASDAQ: ODT) and certain of its officers.   The class action, filed in United States District Court for the Southern District of California, and docketed under 20-cv-01828, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Odonate securities between December 7, 2017, and August 21, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Odonate securities during the class period, you have until November 16, 2020, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

Odonate was founded in 2013 and is based in San Diego, California.  Odonate is a pharmaceutical company that develops therapeutics for the treatment of cancer.  The Company is focused on developing tesetaxel, an orally administered chemotherapy agent. 

Tesetaxel is in Phase 3 clinical study for patients with locally advanced or metastatic breast cancer (“MBC”), called the CONTESSA trial, which is evaluating tesetaxel in combination with capecitabine in patients with MBC.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) tesetaxel was not as safe or well-tolerated as the Company had led investors to believe; (ii) consequently, tesetaxel’s commercial viability as a cancer treatment was overstated; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On August 24, 2020, during pre-market hours, Odonate issued a press release announcing top-line results from the CONTESSA trial.  Although the study met its primary endpoint, tesetaxel plus capecitabine was associated with Grade 3 or higher neutropenia (low levels of white blood cells), which occurred in 71.2% of patients with the combination treatment versus 8.3% for capecitabine alone.  Various other Grade 3 or higher treatment-emergent adverse events (“AEs”) were also associated with tesetaxel plus capecitabine versus capecitabine alone.  Further, discontinuation rates were 4.2% from neutropenia and 3.6% from neuropathy, and the overall discontinuation rate was 23.1% in the treatment group compared to 11.9% in the capecitabine alone group.

On this news, Odonate’s stock price fell $15.21 per share, or 45.35%, to close at $18.33 per share on August 24, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT: Robert S. Willoughby Pomerantz LLP [email protected]

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