Berry (US:BERY)2019-02-01 21:17Financial Performance - Net income for the quarter ended December 29, 2018, was $88 million, a decrease of 46% compared to $163 million for the same period in 2017[8] - Comprehensive income for the quarter was $67 million, down from $151 million year-over-year[8] - Total net sales for the quarter ended December 29, 2018, were $1.972 billion, an increase from $1.776 billion in the same period of the previous year, representing an 11% growth[56] - Operating income for the quarter was $176 million, up from $163 million year-over-year, reflecting an 8% increase[56] - Basic earnings per share (EPS) for the quarter was $0.67, compared to $1.24 in the prior year, reflecting a decline of 46%[63] - Diluted EPS for the quarter was $0.66, down from $1.20 year-over-year, indicating a decrease of 45%[63] - The company reported a comprehensive net income of $151 million for the quarter, compared to $67 million in the same quarter last year, indicating an increase of 125.4%[67] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $293 million, compared to $228 million at the end of the previous year[12] - Net cash from operating activities was $161 million, an increase from $153 million in the prior year[12] - Cash flow from operating activities for the quarter was $161 million, with cash flow from investing activities resulting in a net outflow of $75 million[69] - The company reported a net change in cash of $(88) million, ending the period with cash and cash equivalents of $293 million[70] Assets and Liabilities - Total assets as of December 29, 2018, were $8,972 million, a slight decrease from $9,131 million at the end of the previous quarter[10] - Total liabilities were $7,517 million, down from $7,697 million in the previous quarter[10] - Long-term debt totaled $5.737 billion as of December 29, 2018, a decrease from $5.844 billion on September 29, 2018, with compliance to all debt covenants maintained[38] - The company recognized a total of $427 million in accrued expenses and other current liabilities as of December 29, 2018, compared to $416 million on September 29, 2018[34] - Current liabilities totaled $1.179 billion, while stockholders' equity stood at $1.455 billion[68] Acquisitions and Investments - The company acquired Laddawn, Inc. for a purchase price of $242 million, with the acquisition expected to generate cost synergies and included working capital of $26 million and goodwill of $79 million[24] - The acquisition of Clopay Plastic Products Company, Inc. was completed for $475 million, with the purchase price allocated to working capital of $70 million and goodwill of $111 million[26][28] Stock and Shareholder Actions - Berry Global Group, Inc. repurchased $52 million worth of common stock during the quarter[12] - The company repurchased approximately 1,132 thousand shares for $54 million during the quarter, with $412 million remaining available for share repurchases[61] Debt and Interest Rates - The company has entered into factoring agreements, with gross amounts factored under U.S. programs at $212 million as of December 29, 2018, compared to $162 million on September 29, 2018[31] - Interest expense for the quarter was $62 million, compared to $64 million in the previous year, showing a slight decrease of 3.1%[67] - As of December 29, 2018, the company had $3.6 billion in term loans and a $750 million revolving credit facility with no borrowings outstanding[100] - A 0.25% change in LIBOR would increase annual interest expense by $5 million on variable rate term loans[100] - The applicable margin for LIBOR rate borrowings under the revolving credit facility ranges from 1.25% to 1.75%[100] - The margin for term loans ranges from 1.75% to 2.00% per annum[100] - The LIBOR rate applicable to term loans was approximately 2.50% as of December 29, 2018[100] Other Financial Metrics - The company reported depreciation of $96 million for the quarter, compared to $91 million in the same quarter last year[12] - The accrued rebate balance was $64 million as of December 29, 2018, up from $58 million on September 29, 2018, reflecting management estimates based on customer purchase agreements[20] - Long-lived assets totaled $6.766 billion as of December 29, 2018, a decrease from $6.846 billion as of September 29, 2018[57] - The company’s goodwill was reported at $2.941 billion as of December 29, 2018, slightly down from $2.944 billion as of September 29, 2018[56] - The balance of accumulated other comprehensive loss increased to $177 million as of December 29, 2018, from $156 million at the end of the previous year[64] - The company incurred restructuring and impairment charges totaling $11 million for the quarter[66] Future Outlook - The company plans to continue focusing on operational efficiencies and market expansion strategies moving forward[14] - The company is currently evaluating the impact of the new lease accounting standard, effective for fiscal 2020, which will require recognition of lease assets and liabilities on the balance sheet[17] Currency and Foreign Exchange - A 10% decline in foreign currency exchange rates would negatively impact the company's annual net income by $6 million[102] - The company has cross-currency swap agreements with a notional amount of 250 million euros to convert fixed-rate U.S. dollar loans to fixed-rate euro-denominated debt[103]