Berry (BERY) - 2019 Q2 - Quarterly Report

Financial Performance - Net income for the quarter ended March 30, 2019, was $65 million, a decrease from $114 million in the same period last year, representing a 43% decline [6]. - Comprehensive income for the quarter was $65 million, compared to $132 million in the previous year, reflecting a significant decrease [6]. - Net income for the quarter ended March 30, 2019, was $162 million, a decrease from $253 million in the same period last year, representing a decline of 36% [11]. - In the quarterly period ended March 30, 2019, the company reported a net income of $74 million, compared to $90 million for the same period in 2018, representing a decrease of approximately 17.8% [59]. - Diluted net income per share for the quarter was $0.55, compared to $0.66 in the same quarter of the previous year, a decrease of approximately 16.7% [59]. - Net income for the quarter stood at $74 million, consistent across Parent and Issuer segments [67]. - Comprehensive net income for the quarter was $132 million, down from $146 million year-over-year, showing a decrease of approximately 9.6% [70]. Assets and Liabilities - Total current assets decreased to $2,267 million from $2,285 million, with cash and cash equivalents at $353 million, down from $381 million [8]. - Total liabilities decreased to $7,453 million from $7,697 million, with long-term debt less current portion at $5,690 million, down from $5,806 million [8]. - Stockholders' equity increased to $1,531 million from $1,434 million, driven by an increase in additional paid-in capital to $901 million from $867 million [8]. - Total long-lived assets as of March 30, 2019, were $6,717 million, down from $6,846 million as of September 2018 [52]. - The Company’s total assets were $8,984 million as of March 30, 2019, compared to $9,131 million as of September 2018 [50]. - Current liabilities totaled $1.127 billion, indicating a manageable short-term financial position [66]. Cash Flow - Cash flows from operating activities increased to $331 million for the quarter ended March 30, 2019, compared to $285 million for the same period last year, reflecting a growth of 16% [11]. - Cash flow from operating activities was $331 million, demonstrating strong operational efficiency compared to the previous period [71]. - Cash flow from investing activities resulted in a net outflow of $655 million, primarily due to $474 million for business acquisitions [73]. - Cash flow from financing activities generated a net inflow of $354 million, including $497 million from long-term borrowings [73]. Debt and Financing - The company made $122 million in repayments on long-term borrowings during fiscal 2019 using existing liquidity [36]. - As of March 30, 2019, the company had long-term debt totaling $5.727 billion, a decrease from $5.844 billion as of September 29, 2018 [35]. - The company incurred interest expenses of $66 million, which may impact future profitability [67]. - The company amended its revolving line of credit, increasing total capacity from $750 million to $850 million, maturing in April 2024 [74]. - A 0.25% change in LIBOR would increase annual interest expense by $5 million on variable rate term loans [120]. Acquisitions and Investments - The company plans to acquire RPC Group Plc for approximately £3.3 billion ($4.3 billion), with total consideration expected to be around £5.0 billion ($6.5 billion) including debt refinancing [20]. - The acquisition of RPC Group Plc is expected to be completed early in the third quarter of calendar year 2019, pending antitrust clearances [22]. - The company acquired Laddawn, Inc. for a purchase price of $242 million, with identifiable assets including working capital of $26 million and intangible assets of $98 million [25]. - RPC acquired Clopay Plastic Products Company for $475 million, with the purchase price allocated to working capital of $70 million and intangible assets of $125 million [26][28]. - The company recognized goodwill primarily due to expected cost synergies from the acquisitions of Laddawn and Clopay, with goodwill of $79 million and $111 million respectively [25][27]. Operational Efficiency - The company anticipates continued focus on operational efficiencies and strategic growth initiatives moving forward [3]. - The company is exploring market expansion opportunities and potential acquisitions to enhance its competitive position [67]. - The company plans to continue investing in new product development and market expansion strategies to drive future growth [70]. - The company has various purchase commitments for raw materials and supplies, which are essential for its ordinary business operations [55]. Segment Performance - Engineered Materials segment reported net sales of $628 million for the quarter, down from $655 million in the same quarter of the previous year [50]. - Health, Hygiene & Specialties segment net sales were $683 million, a decrease from $706 million year-over-year [50]. - Consumer Packaging segment achieved net sales of $639 million, up from $606 million in the same quarter of 2018 [50]. - Total net sales for the quarter ended March 30, 2019, were $1,950 million, a decrease of 0.9% from $1,967 million for the same period in 2018 [50]. - Operating income for the quarter was $185 million, compared to $188 million in the same quarter of the previous year, reflecting a slight decline [50]. Legal and Compliance - The company is involved in various legal proceedings, but management believes that any ultimate liability would not be material to its financial statements [54]. - The company’s accumulated other comprehensive loss was reported at $(186) million as of March 30, 2019 [63].