Sealed Air(US:SEE)2024-11-07 20:15Financial Performance - Net sales for Q3 2024 were $1,345.1 million, a decrease of 2.6% compared to $1,381.8 million in Q3 2023[8] - Gross profit for Q3 2024 was $401.5 million, down from $413.3 million in Q3 2023, reflecting a gross margin of 29.8%[8] - Operating profit increased to $186.3 million in Q3 2024, compared to $157.6 million in Q3 2023, representing a growth of 18.2%[8] - Net earnings from continuing operations for Q3 2024 were $88.7 million, up 54% from $57.6 million in Q3 2023[8] - Net earnings for the three months ended September 30, 2024, were $91.7 million, compared to $56.6 million for the same period in 2023, representing a 62.5% increase[182] - Basic net earnings per common share for the three months ended September 30, 2024, were $0.63, up from $0.39 in 2023, reflecting a 61.5% increase[182] Assets and Liabilities - Total current assets increased to $2,059.5 million as of September 30, 2024, compared to $1,963.3 million as of December 31, 2023, reflecting a growth of 4.9%[7] - Total liabilities decreased to $6,549.9 million from $6,651.1 million, a reduction of 1.5%[7] - The total assets of the company increased to $7,321.1 million from $7,200.6 million, reflecting a growth of 1.7%[7] - Stockholders' equity increased to $771.2 million, compared to $549.5 million, reflecting a significant growth of 40.3%[7] - Retained earnings rose to $680.1 million, up from $496.5 million, an increase of 37.0%[7] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $483.8 million, significantly higher than $192.5 million for the same period in 2023[14] - The company reported a net cash used in investing activities of $165.2 million for the nine months ended September 30, 2024, compared to $1,326.0 million in the same period of 2023[14] - Proceeds from long-term debt for the nine months ended September 30, 2024, amounted to $413.4 million, compared to $1,411.4 million in the same period of 2023[14] - The balance of cash and cash equivalents at the end of the period was $386.0 million, an increase from $281.3 million at the end of the same period in 2023[14] Segment Performance - Food segment net sales increased to $897.9 million in Q3 2024, up from $893.4 million in Q3 2023, representing a growth of 0.5%[58] - Protective segment net sales decreased to $447.2 million in Q3 2024, down from $488.4 million in Q3 2023, a decline of 8.5%[58] - Total segment adjusted EBITDA for Q3 2024 was $281.4 million, a decrease of 2.7% from $289.3 million in Q3 2023[59] - Food segment adjusted EBITDA margin improved to 22.9% in Q3 2024, compared to 21.7% in Q3 2023[59] - Protective segment adjusted EBITDA margin decreased to 16.9% in Q3 2024, down from 19.5% in Q3 2023[59] Debt and Financing - The company reported a current portion of long-term debt of $58.1 million, up from $35.7 million, indicating a rise of 62.5%[7] - Total debt outstanding as of September 30, 2024, is $4.5318 billion, a decrease from $4.6903 billion at December 31, 2023[95] - The company issued $400 million in senior notes due 2032 with a 6.500% interest rate, maturing on July 15, 2032[99] - The weighted average interest rate on long-term debt outstanding as of September 30, 2024, is 5.5%[96] Dividends and Share Repurchase - Dividends paid on common stock for the nine months ended September 30, 2024, were $88.8 million, slightly lower than $88.9 million in the same period of 2023[14] - The company has a remaining share repurchase authorization of $536.5 million as of September 30, 2024, with no shares repurchased during the three and nine months ended September 30, 2024[159][160] - The company declared quarterly cash dividends of $0.20 per common share, totaling $29.1 million, for each of the three months ended September 30, 2024[162][163] Accounting and Compliance - The Condensed Consolidated Financial Statements are prepared in accordance with SEC interim reporting requirements, with certain annual footnotes and financial information omitted[18] - The Company emphasizes that actual results could differ from estimates made in the preparation of the Condensed Consolidated Financial Statements[18] - There were no significant changes to the accounting policies as disclosed in the 2023 Form 10-K[20] Market and Strategic Focus - Sealed Air Corporation focuses on sustainable packaging solutions across various end markets, including food, medical, and e-commerce[15] - The company’s portfolio includes well-known brands such as CRYOVAC, LIQUIBOX, and BUBBLE WRAP, emphasizing its competitive strengths in high-performance packaging solutions[16] - The company anticipates continued growth initiatives and market expansion in the upcoming quarters, although specific numerical guidance was not provided[4]