Pactiv(PTVE)2024-11-12 11:21Financial Performance - Total net revenues for the three months ended September 30, 2024 decreased by $46 million, or 3%, to $1,333 million compared to the prior year period[74] - Adjusted EBITDA from continuing operations for the three months ended September 30, 2024 was $214 million, a decrease of $13 million, or 6%, compared to $227 million in the prior year[74] - Gross profit for the three months ended September 30, 2024 was $255 million, representing 19% of total net revenues, down from 20% in the prior year[74] - The company experienced a net loss from continuing operations of $213 million for the three months ended September 30, 2024, compared to a net income of $30 million in the prior year[74] - Total net revenues for the three months ended September 30, 2024 decreased by $313 million, or 7%, to $3,923 million compared to the prior year period[80] - Adjusted EBITDA from continuing operations for the three months ended September 30, 2024 decreased by $68 million, or 11%, to $565 million compared to the prior year period[81] - Loss from continuing operations for the three months ended September 30, 2024 was $183 million compared to a loss of $244 million in the prior year period[80] - Foodservice total segment net revenues for the three months ended September 30, 2024 decreased by $5 million, or 1%, to $670 million compared to the prior year period[77] - Food and Beverage Merchandising total segment net revenues for the three months ended September 30, 2024 decreased by $45 million, or 6%, to $667 million compared to the prior year period[78] - Total segment net revenues for Food and Beverage Merchandising decreased by $366 million, or 15%, to $2,001 million for the nine months ended September 30, 2024 compared to the prior year period[84] - Adjusted EBITDA for Food and Beverage Merchandising decreased by $36 million, or 11%, to $304 million for the nine months ended September 30, 2024 compared to the prior year period[84] Expenses and Costs - Selling, general and administrative expenses decreased by $22 million, or 16%, to $115 million for the three months ended September 30, 2024[74] - Selling, general and administrative expenses for the three months ended September 30, 2024 decreased by $33 million, or 8%, to $370 million compared to the prior year period[81] - Cost of sales for the three months ended September 30, 2024 decreased by $532 million, or 14%, to $3,224 million compared to the prior year period[81] - Restructuring, asset impairment and other related charges for the three months ended September 30, 2024 increased by $310 million to $338 million compared to the prior year period[76] Asset Management and Sales - The company recognized an impairment charge of $314 million related to the assets and liabilities of the Beverage Merchandising reporting unit classified as held for sale[68] - The company received preliminary proceeds of $83 million from the sale of its Pine Bluff, Arkansas mill and Waynesville, North Carolina extrusion facility, which closed on October 1, 2024[68] Strategic Initiatives - The Beverage Merchandising Restructuring plan aims to increase production efficiency and reduce ongoing capital expenditures and overhead costs[68] - The Footprint Optimization plan was approved to enhance manufacturing and warehousing efficiency, contributing to improved operating performance[71] Cash Flow and Liquidity - Net cash provided by operating activities was $305 million for the nine months ended September 30, 2024, a decrease from $453 million in the prior year period[86] - Cash and cash equivalents on-hand as of September 30, 2024 were $168 million, with $724 million available under the revolving credit facility[90] - The company expects to make cash payments between $240 million and $250 million for capital expenditures during 2024[89] - Liquidity position improved due to the amendment of the Credit Agreement, increasing availability under the Revolving Tranche facility[89] - Net cash outflows decreased by $281 million, or 94%, compared to the prior year period, primarily due to a decrease in cash used in financing activities[85] - The company anticipates annual cash interest obligations on borrowings to be approximately $220 million based on the one-month SOFR as of September 30, 2024[88] Dividends - The company declared a dividend of $0.10 per share to be paid on December 13, 2024, maintaining cash dividends of $54 million for the nine months ended September 30, 2024[87] Market Conditions - The company anticipates continued price sensitivity from customers due to sustained high levels of inflation impacting consumer spending[67]