Silgan (US:SLGN)2025-01-29 21:30Financial Performance - Full year 2024 net sales were $5.9 billion, a decrease of $133.5 million, or 2%, compared to 2023[19] - Full year 2024 net income was $276.4 million, or $2.58 per diluted share, down from $326.0 million, or $2.98 per diluted share in 2023[2] - Adjusted net income per diluted share for 2024 was $3.62, a 6% increase from $3.40 in 2023[3] - Silgan Holdings reported annual net sales of approximately $5.9 billion in 2024, a decrease from $5.988 billion in 2023, representing a decline of about 2.2%[34] - The company’s net income for 2024 was $276.4 million, down from $326 million in 2023, marking a decrease of approximately 15.2%[42] - Diluted earnings per share (EPS) for 2024 was $2.58, compared to $2.98 in 2023, reflecting a decline of about 13.4%[38] Quarterly Performance - Fourth quarter 2024 net sales were $1.4 billion, an increase of $71.1 million, or 5%, year-over-year[9] - For the fourth quarter of 2024, net sales were $1.411 billion, up from $1.340 billion in the same quarter of 2023, reflecting an increase of approximately 5.3%[38] - U.S. GAAP net income for Q4 2024 was $45.1 million, with diluted EPS of $0.42, compared to $64.4 million and $0.60 in Q4 2023, representing a decrease of 30% in net income and 30% in EPS[46] - Non-U.S. GAAP adjusted net income for Q4 2024 was $90.8 million, with adjusted diluted EPS of $0.85, compared to $67.6 million and $0.63 in Q4 2023, indicating an increase of 34% in adjusted net income and 35% in adjusted EPS[46] - Total adjusted EBIT for Q4 2024 was $151.7 million, up from $135.9 million in Q4 2023, reflecting an increase of 11%[48] - Adjusted EBIT for the Dispensing and Specialty Closures segment in Q4 2024 was $99.9 million, compared to $87.0 million in Q4 2023, an increase of 15%[48] Cash Flow and Assets - Free cash flow for 2024 was $391.3 million, a 10% increase compared to $356.7 million in 2023[23] - The company reported a net cash provided by operating activities of $721.9 million for 2024, compared to $482.6 million in 2023, showing an increase of about 49.6%[41] - Cash and cash equivalents increased to $822.9 million as of December 31, 2024, from $642.9 million in 2023, representing a growth of approximately 28%[40] - Silgan's total assets grew to $8.585 billion in 2024, up from $7.611 billion in 2023, an increase of approximately 12.8%[40] - Free cash flow for the year ended 2024 was $391.3 million, compared to $356.7 million in 2023, marking an increase of 10%[52] - Net cash provided by operating activities for 2024 was $721.9 million, significantly higher than $482.6 million in 2023, representing a growth of 50%[52] Future Expectations - The Company anticipates adjusted net income per diluted share for 2025 to be in the range of $4.00 to $4.20, a 13% increase at the midpoint over 2024[30] - The company expects free cash flow in 2025 to be approximately $450 million, a 15% increase from 2024[31] - The company expects U.S. GAAP net income for 2025 to be between $66.4 million and $77.1 million, with estimated diluted EPS ranging from $0.62 to $0.72[50] Costs and Charges - The company incurred rationalization charges of $59.5 million in 2024, compared to $8.4 million in 2023, indicating a significant increase in restructuring costs[41] - The adjusted tax rate for 2024 was 21.2%, down from 23.8% in 2023, indicating improved tax efficiency[46] - The company reported a pre-tax impact of adjustments totaling $57.9 million for Q4 2024, compared to $9.8 million in Q4 2023, highlighting significant operational adjustments[46] Capital Expenditures - Silgan's capital expenditures for 2024 were $262.8 million, up from $226.8 million in 2023, indicating a rise of approximately 15.9%[41] - The weighted average number of diluted shares outstanding for 2024 was 107.1 million, compared to 109.2 million in 2023, reflecting a decrease of 2%[52] Non-GAAP Measures - The Company presented adjusted net income per diluted share as a Non-GAAP financial measure, excluding acquired intangible asset amortization expense and other pension income, which management believes provides a more accurate evaluation of operating results[53] - Adjusted EBIT was also presented as a Non-GAAP financial measure, excluding similar costs as adjusted net income, and including equity in earnings of affiliates, which management views as part of the Company's operating performance[54] - Free cash flow is defined as net cash provided by operating activities adjusted for changes in outstanding checks, reduced by capital expenditures, and increased by proceeds from asset sales, highlighting its importance for internal growth and acquisitions[56]