Silgan Pronounces Robust Progress in 2022; Anticipates Elevated Income, Phase Revenue and Free Money Movement In 2023

January 25, 2023

STAMFORD, Conn.–(BUSINESS WIRE)–Silgan Holdings Inc. (NYSE:SLGN), a number one provider of sustainable inflexible packaging options for the world’s important client items merchandise, as we speak reported report full 12 months web gross sales of $6.41 billion, a 12.9 p.c enhance over prior 12 months web gross sales of $5.68 billion, and full 12 months 2022 web earnings of $340.8 million, or $3.07 per diluted share, as in comparison with full 12 months 2021 web earnings of $359.1 million, or $3.23 per diluted share.

Adjusted web earnings per diluted share for the complete 12 months of 2022 was a report $3.98, after changes growing web earnings per diluted share by $0.91 primarily associated to the write-off of web belongings in Russia. Adjusted web earnings per diluted share for the complete 12 months of 2021 was $3.40, after changes growing web earnings per diluted share by $0.17 primarily associated to rationalization costs. A reconciliation of historic web earnings per diluted share to “adjusted web earnings per diluted share,” a Non-GAAP monetary measure utilized by the Firm that adjusts web earnings per diluted share for sure objects, may be present in Desk A behind this press launch.

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“The Silgan crew continued to function at a really excessive degree, capitalizing on our momentum within the market alongside our clients in 2022. Because of this, we delivered our sixth consecutive 12 months of report adjusted EPS in 2022, with a brand new all-time report that’s 17 p.c above the earlier report in 2021,” stated Adam Greenlee, President and CEO. “Since our founding, our distinctive enterprise mannequin has confirmed profitable all through a wide range of financial cycles as demonstrated by our 12 p.c 10 12 months CAGR for adjusted EPS. The previous three years have showcased the distinctive power of our crew and the execution of our strategic initiatives in addition to our means to adapt to quickly altering market situations, with a better than 20 p.c CAGR for adjusted EPS from pre-pandemic ranges,” continued Mr. Greenlee.

“As our focus shifts to 2023, we consider the prospects for continued success and progress are stronger than at any level in our historical past. We anticipate the outcomes of our long-term progress technique of constructing partnerships with our clients, monetary self-discipline, efficient deployment of capital and a relentless concentrate on prices and profitability will proceed to ship elevated revenues, natural quantity progress and elevated section earnings in 2023, in addition to considerably improved free money movement technology,” concluded Mr. Greenlee.

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The Firm reported web money offered by working actions of $748.4 million in 2022 as in comparison with $556.8 million in 2021. Free money movement for 2022 was $368.2 million as in comparison with $466.1 million in 2021. The lower in free money movement was due primarily to increased working capital, the cost of the European Fee settlement and better curiosity funds, partially offset by increased earnings earlier than curiosity and earnings taxes in 2022. The Firm is offering a reconciliation in Desk C of this press launch of web money offered by working actions to “free money movement,” a Non-GAAP monetary measure utilized by the Firm which adjusts web money offered by working actions for sure objects. Web gross sales for 2022 had been $6.41 billion, a rise of $734.4 million, or 12.9 p.c, as in comparison with $5.68 billion in 2021. This enhance was the results of increased web gross sales in all segments.

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Revenue earlier than curiosity and earnings taxes for 2022 was a report $602.0 million, a rise of $25.9 million, or 4.5 p.c, as in comparison with $576.1 million for 2021, whereas margins decreased to 9.4 p.c from 10.1 p.c for a similar intervals largely on account of $74.1 million of rationalization costs in 2022. The rise in earnings earlier than curiosity and earnings taxes was the results of increased earnings within the Dishing out and Specialty Closures and Customized Containers segments, partially offset by decrease earnings within the Metallic Containers section on account of increased rationalization costs and better company bills because of a cost of $25.2 million associated to the European Fee settlement. Rationalization costs had been $74.1 million in 2022 primarily as a result of write-off of web belongings to service the Russian market within the Metallic Containers section, which additionally decreased margins in 2022 as in comparison with 2021. Rationalization costs had been $15.0 million in 2021. The complete 12 months of 2021 additionally included prices attributed to introduced acquisitions and a cost for the write-up of stock for buy accounting of $5.0 million and $2.6 million, respectively.

Curiosity and different debt expense earlier than loss on early extinguishment of debt for 2022 was $126.3 million, a rise of $17.9 million as in comparison with 2021. This enhance was primarily on account of increased weighted common excellent borrowings because of the acquisitions accomplished within the third and fourth quarters of 2021, partially offset by the influence from decrease international foreign money change charges on excellent Euro denominated debt.

The efficient tax charges had been 28.1 p.c and 23.0 p.c for 2022 and 2021, respectively. The efficient tax price for 2022 was unfavorably impacted by the write-off of web belongings associated to operations in Russia and the European Fee settlement, every of which was non-deductible.

Dishing out and Specialty Closures

Web gross sales of the Dishing out and Specialty Closures section had been a report $2.32 billion in 2022, a rise of $156.2 million, or 7.2 p.c, as in comparison with $2.16 billion in 2021. This enhance was primarily the results of increased common promoting costs as a result of move by of upper uncooked materials and different inflationary prices and better unit volumes of roughly 1 p.c, partially offset by unfavorable international foreign money translation of roughly $106 million. Unit volumes elevated over the prior 12 months report primarily on account of increased unit volumes for magnificence and perfume and shelling out merchandise, together with from the companies acquired in September 2021. These will increase had been partially offset by anticipated quantity decreases in closures for sure meals and beverage markets, as in comparison with report volumes within the prior 12 months primarily on account of buyer pre-buy exercise within the fourth quarter of 2021 upfront of serious metallic inflation, and a lower in volumes for garden and backyard, hygiene and residential cleansing merchandise which had been impacted by additional stock corrections all through the availability chain in 2022. Unit volumes had been roughly 18 p.c increased than pre-pandemic ranges in 2019.

Phase earnings of Dishing out and Specialty Closures for 2022 elevated $60.9 million to a report $323.0 million as in comparison with $262.1 million in 2021, and section margin elevated to 13.9 p.c from 12.1 p.c for a similar intervals. The rise in section earnings was primarily on account of increased common promoting costs principally because of the move by of upper uncooked materials and different inflationary prices, sturdy working efficiency together with the good thing about a listing administration program, the favorable year-over-year comparative influence from the delayed move by of resin prices, price restoration for sure buyer challenge expenditures, decrease rationalization costs and a $1.6 million cost for the write-up of stock for buy accounting within the prior 12 months interval, partially offset by inflation in manufacturing and promoting, common and administrative prices and the influence of unfavorable international foreign money translation.

Metallic Containers

Web gross sales of the Metallic Containers section had been a report $3.37 billion for 2022, a rise of $563.8 million, or 20.1 p.c, as in comparison with $2.81 billion in 2021. This enhance was primarily the results of increased common promoting costs as a result of move by of upper uncooked materials and different manufacturing prices, partially offset by decrease unit volumes of roughly 11 p.c and unfavorable international foreign money translation of roughly $52 million. As anticipated, the lower in unit volumes was principally the results of the influence of buyer pre-buy exercise within the fourth quarter of 2021 upfront of serious worth will increase on account of unprecedented metallic inflation in 2022, decrease fruit and vegetable volumes as in comparison with increased volumes from buyer restocking within the report prior 12 months and the continued unfavorable influence from sure clients’ ongoing provide chain and labor challenges in 2022.

Phase earnings of Metallic Containers in 2022 was $234.2 million, a lower of $19.5 million as in comparison with $253.7 million in 2021, and section margin decreased to six.9 p.c from 9.0 p.c for a similar intervals. The lower in section earnings was primarily attributable to increased rationalization costs of $64.2 million. Phase earnings benefited from sturdy working efficiency, which included a listing administration program, and better common promoting costs as a result of move by of upper uncooked materials and different inflationary prices. These will increase had been partially offset by inflation in manufacturing and promoting, common and administrative prices, decrease unit volumes, a much less favorable mixture of merchandise offered and the influence of unfavorable international foreign money translation. Rationalization costs had been $73.1 million and $8.9 million in 2022 and 2021, respectively. Rationalization costs in 2022 included $73.8 million primarily associated to the write-off of web belongings of operations in Russia, partially offset by a rationalization credit score of $8.5 million associated to finalizing the legal responsibility for the withdrawal from the Central States, Southeast and Southwest Areas Pension Plan in 2019.

Customized Containers

Web gross sales of the Customized Containers section had been $723.0 million in 2022, a rise of $14.4 million, or 2.0 p.c, as in comparison with $708.6 million in 2021. This enhance was principally on account of increased common promoting costs, together with the move by of upper resin and different inflationary prices, and a extra favorable mixture of merchandise offered, partially offset by decrease volumes of roughly 8 p.c and the influence of unfavorable international foreign money translation of roughly $5 million. The decline in volumes was primarily on account of increased volumes within the prior 12 months because of elevated demand associated to the pandemic and subsequent stock corrections all through the availability chain in 2022, significantly for house, private care and garden and backyard merchandise.

Phase earnings of Customized Containers in 2022 was $92.5 million, a rise of $0.1 million as in comparison with $92.4 million in 2021, whereas section margin decreased to 12.8 p.c from 13.0 p.c over the identical intervals. The rise in section earnings was primarily attributable to increased common promoting costs, the favorable year-over-year comparative influence from the delayed move by of resin prices and powerful working efficiency. These will increase had been partially offset by decrease volumes and inflation in manufacturing and promoting, common and administrative prices.

Fourth Quarter

Web earnings for the fourth quarter of 2022 was $24.6 million, or $0.22 per diluted share, as in comparison with web earnings of $85.0 million, or $0.76 per diluted share, for the fourth quarter of 2021. Adjusted web earnings per diluted share for the fourth quarter of 2022 was a report $0.84, a 6 p.c enhance over the earlier report of $0.79 in 2021, after changes growing web earnings per diluted share by $0.62 for the fourth quarter of 2022 and by $0.03 for the fourth quarter of 2021.

Web gross sales for the fourth quarter of 2022 elevated $16.1 million, or 1.1 p.c, to $1.46 billion as in comparison with $1.44 billion for the fourth quarter of 2021. This enhance was primarily the results of increased common promoting costs within the Dishing out and Specialty Closures and Metallic Containers segments, principally associated to the move by of upper uncooked materials and different inflationary prices, and a extra favorable mixture of merchandise offered within the Customized Containers section, partially offset by anticipated decrease volumes throughout all segments, the influence of unfavorable international foreign money translation of roughly $39 million and decrease common promoting costs within the Customized Containers section due primarily to the move by of decrease resin prices. Decrease unit volumes of roughly 8 p.c within the Dishing out and Specialty Closures section and 13 p.c within the Metallic Containers section had been due primarily to the shopper pre-buy exercise in 2021 upfront of serious metallic inflation in 2022. The decline in volumes of roughly 11 p.c within the Customized Containers section was primarily for garden and backyard, house and private care merchandise, which included the non-renewal of a decrease margin provide settlement.

Revenue earlier than curiosity and earnings taxes for the fourth quarter of 2022 was $81.1 million, a lower of $47.6 million as in comparison with the identical interval in 2021, and margins decreased to five.6 p.c from 8.9 p.c for a similar intervals. The lower in earnings earlier than curiosity and earnings taxes was primarily on account of increased rationalization costs of $64.6 million. Phase earnings benefited from increased common promoting costs within the Dishing out and Specialty Closures and Metallic Containers segments principally as a result of move by of upper uncooked materials and different inflationary prices, sturdy working performances in every of the segments, together with the good thing about stock administration applications within the Metallic Containers and Dishing out and Specialty Closures segments, and the favorable year-over-year comparative influence from the delayed move by of resin prices. These will increase had been partially offset by decrease volumes, a much less favorable mixture of merchandise offered, inflation in manufacturing and promoting, common and administrative prices and the influence of unfavorable international foreign money translation. Rationalization costs had been $66.6 million and $2.0 million within the fourth quarters of 2022 and 2021, respectively, leading to decrease margins within the fourth quarter of 2022 as in comparison with the prior 12 months interval. Rationalization costs within the fourth quarter of 2022 included $73.8 million for the write-off of web belongings of operations in Russia, partially offset by a rationalization credit score of $9.8 million associated to finalizing the legal responsibility for the withdrawal from the Central States, Southeast and Southwest Areas Pension Plan in 2019. The fourth quarter of 2021 additionally included prices attributed to introduced acquisitions of $0.9 million and a $1.7 million cost for the write-up of stock for buy accounting.

Curiosity and different debt expense earlier than loss on early extinguishment of debt for the fourth quarter of 2022 was $34.6 million, a rise of $6.0 million as in comparison with the identical interval in 2021. This enhance was primarily on account of increased weighted common rates of interest. Loss on early extinguishment of debt was $0.5 million for the fourth quarter of 2021.

The efficient tax price for the fourth quarter of 2022 was 47.2 p.c as in comparison with 14.7 p.c for the fourth quarter of 2021. The efficient tax price in 2022 was unfavorably impacted by the write-off of web belongings associated to metallic containers operations in Russia which was non-deductible.

Outlook for 2023

The Firm at the moment estimates that its adjusted web earnings per diluted share for the complete 12 months of 2023 can be within the vary of $3.95 to $4.15, which features a headwind of $0.20 per diluted share for extra curiosity expense, as in comparison with report adjusted web earnings per diluted share for the complete 12 months of 2022 of $4.01. Adjusted web earnings per diluted share excludes rationalization costs, the cost for the European Fee settlement and loss on early extinguishment of debt. In an effort to align our adjusted earnings with the underlying working efficiency of our operations, our estimate additionally excludes acquired intangible asset amortization expense and different pension earnings for U.S. pension plans. A reconciliation of estimated adjusted web earnings per diluted share for 2023 as in comparison with adjusted web earnings per diluted share for 2022 is about forth in Desk B behind this press launch and as in comparison with adjusted web earnings per diluted share since 2012 is discovered on the Firm’s web site.

Phase earnings within the Dishing out and Specialty Closures section in 2023 is anticipated to extend considerably over the prior 12 months primarily on account of increased volumes and continued enchancment in working efficiency. Volumes in 2023 are anticipated to be increased than in 2022 because of continued progress within the magnificence and perfume markets, improved quantity ranges for hygiene and cleansing merchandise as in comparison with the adverse influence in 2022 from stock administration all through the availability chain for these merchandise and fewer buyer pre-buy exercise than within the prior 12 months interval. Phase earnings within the Metallic Containers section is anticipated to enhance in 2023 as in comparison with 2022 because of increased unit volumes, on account of continued progress in pet meals merchandise and fewer buyer pre-buy exercise than within the prior 12 months interval, and continued sturdy working efficiency and price enhancements, partially offset by the influence from the rationalization of operations in Russia. Phase earnings within the Customized Containers section is anticipated to profit from continued manufacturing efficiencies and anticipated increased volumes because of improved quantity ranges for house, private care and garden and backyard merchandise, and continued progress in pet meals merchandise, offset by the timing influence of exiting decrease margin enterprise within the latter half of 2022 that didn’t meet reinvestment return hurdles and changing it with new enterprise that can be commercialized within the fourth quarter of 2023.

The Firm expects curiosity expense earlier than loss on early extinguishment of debt of roughly $155 million in 2023, a rise of $28.7 million, or $0.20 per diluted share, primarily on account of increased weighted common rates of interest, partially offset by decrease weighted common excellent debt balances.

The Firm expects its efficient tax price for 2023 to be roughly 24 to 25 p.c as in comparison with the efficient tax price for 2022 of 28.1 p.c.

The Firm at the moment estimates that free money movement in 2023 can be roughly $425 million as in comparison with $368.2 million in 2022. Free money movement in 2023 is anticipated to profit from sturdy working efficiency and enhancements in working capital, partially offset by increased curiosity funds because of increased rates of interest. Capital expenditures are anticipated to be roughly $250 million in 2023.

For the primary quarter of 2023, the Firm is offering an estimate of adjusted web earnings per diluted share within the vary of $0.75 to $0.85, as in comparison with a report $0.79 within the first quarter of 2022. Adjusted web earnings per diluted share excludes acquired intangible asset amortization expense, different pension earnings from U.S. pension plans, rationalization costs and loss on early extinguishment of debt.

Convention Name

Silgan Holdings Inc. will maintain a convention name to debate the Firm’s outcomes for the fourth quarter and full 12 months of 2022 at 11:00 a.m. japanese time on Wednesday, January 25, 2023. The convention name can be webcast reside by way of audio, and each the webcast and this press launch may be accessed at www.silganholdings.com. Those that want to take part within the convention name by way of teleconference ought to dial (888) 660-6144 within the U.S. and Canada or (929) 203-0865 exterior the U.S. and Canada. A taped replay of the convention name can be accessible by February 7, 2023 by calling (800) 770-2030 for these within the U.S. and Canada or (647) 362-9199 for these exterior the U.S. and Canada. The replay will also be accessed by way of audio webcast at www.silganholdings.com. The Convention ID for each the convention name and the taped replay is 1397141.

* * *

Silgan is a number one provider of sustainable inflexible packaging options for the world’s important client items merchandise with annual web gross sales of roughly $6.4 billion in 2022. Silgan operates 112 manufacturing services in North and South America, Europe and Asia. The Firm is a number one worldwide provider of shelling out and specialty closures for meals, beverage, well being care, backyard, house, private care, perfume and wonder merchandise. The Firm can be a number one provider of metallic containers in North America and Europe for meals and common line merchandise. As well as, the Firm is a number one provider of customized containers for shelf-stable meals and private care merchandise in North America.

Statements included on this press launch which aren’t historic info are ahead trying statements made pursuant to the secure harbor provisions of the Non-public Securities Litigation Reform Act of 1995 and the Securities Trade Act of 1934, as amended. Such ahead trying statements are made based mostly upon administration’s expectations and beliefs regarding future occasions impacting the Firm and due to this fact contain quite a few uncertainties and dangers, together with, however not restricted to, these described within the Firm’s Annual Report on Kind 10-Ok for 2021 and different filings with the Securities and Trade Fee. Due to this fact, the precise outcomes of operations or monetary situation of the Firm might differ materially from these expressed or implied in such ahead trying statements.

* * *

 

SILGAN HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the quarter and 12 months ended December 31,

({Dollars} in thousands and thousands, besides per share quantities)

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

12 months Ended

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Web gross sales

 

$

1,455.4

 

 

$

1,439.3

 

 

$

6,411.5

 

 

$

5,677.1

 

 

 

 

 

 

 

 

 

 

Value of products offered

 

 

1,222.7

 

 

 

1,225.5

 

 

 

5,363.7

 

 

 

4,758.7

 

 

 

 

 

 

 

 

 

 

Gross revenue

 

 

232.7

 

 

 

213.8

 

 

 

1,047.8

 

 

 

918.4

 

 

 

 

 

 

 

 

 

 

Promoting, common and administrative bills

 

 

96.5

 

 

 

96.0

 

 

 

416.9

 

 

 

378.1

 

 

 

 

 

 

 

 

 

 

Rationalization costs

 

 

66.6

 

 

 

2.0

 

 

 

74.1

 

 

 

15.0

 

 

 

 

 

 

 

 

 

 

Different pension and postretirement earnings

 

 

(11.5

)

 

 

(12.9

)

 

 

(45.2

)

 

 

(50.8

)

 

 

 

 

 

 

 

 

 

Revenue earlier than curiosity and earnings taxes

 

 

81.1

 

 

 

128.7

 

 

 

602.0

 

 

 

576.1

 

 

 

 

 

 

 

 

 

 

Curiosity and different debt expense earlier than loss on early extinguishment of debt

 

 

34.6

 

 

 

28.6

 

 

 

126.3

 

 

 

108.4

 

 

 

 

 

 

 

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

0.5

 

 

 

1.5

 

 

 

1.4

 

 

 

 

 

 

 

 

 

 

Curiosity and different debt expense

 

 

34.6

 

 

 

29.1

 

 

 

127.8

 

 

 

109.8

 

 

 

 

 

 

 

 

 

 

Revenue earlier than earnings taxes

 

 

46.5

 

 

 

99.6

 

 

 

474.2

 

 

 

466.3

 

 

 

 

 

 

 

 

 

 

Provision for earnings taxes

 

 

21.9

 

 

 

14.6

 

 

 

133.4

 

 

 

107.2

 

 

 

 

 

 

 

 

 

 

Web earnings

 

$

24.6

 

 

$

85.0

 

 

$

340.8

 

 

$

359.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Primary web earnings per share

 

$

0.22

 

 

$

0.77

 

 

$

3.09

 

 

$

3.25

 

Diluted web earnings per share

 

$

0.22

 

 

$

0.76

 

 

$

3.07

 

 

$

3.23

 

 

 

 

 

 

 

 

 

 

Money dividends per widespread share

 

$

0.16

 

 

$

0.14

 

 

$

0.64

 

 

$

0.56

 

 

 

 

 

 

 

 

 

 

Weighted common shares (000’s):

 

 

 

 

 

 

 

 

Primary

 

 

110,148

 

 

 

110,466

 

 

 

110,465

 

 

 

110,396

 

Diluted

 

 

110,769

 

 

 

111,329

 

 

 

111,031

 

 

 

111,166

 

 

SILGAN HOLDINGS INC.

CONSOLIDATED SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

For the quarter and 12 months ended December 31,

({Dollars} in thousands and thousands)

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

12 months Ended

 

 

2022

 

2021

 

2022

 

2021

Web gross sales:

 

 

 

 

 

 

 

 

Dishing out and Specialty Closures

 

$

540.8

 

 

$

572.0

 

 

$

2,316.7

 

 

$

2,160.5

 

Metallic Containers

 

 

754.6

 

 

 

687.3

 

 

 

3,371.8

 

 

 

2,808.0

 

Customized Containers

 

 

160.0

 

 

 

180.0

 

 

 

723.0

 

 

 

708.6

 

Consolidated

 

$

1,455.4

 

 

$

1,439.3

 

 

$

6,411.5

 

 

$

5,677.1

 

 

 

 

 

 

 

 

 

 

Phase earnings:

 

 

 

 

 

 

 

 

Dishing out and Specialty Closures (a)

 

$

65.2

 

 

$

62.6

 

 

$

323.0

 

 

$

262.1

 

Metallic Containers (b)

 

 

8.5

 

 

 

55.2

 

 

 

234.2

 

 

 

253.7

 

Customized Containers (c)

 

 

12.6

 

 

 

17.9

 

 

 

92.5

 

 

 

92.4

 

Company (d)

 

 

(5.2

)

 

 

(7.0

)

 

 

(47.7

)

 

 

(32.1

)

Consolidated

 

$

81.1

 

 

$

128.7

 

 

$

602.0

 

 

$

576.1

 

 

SILGAN HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

December 31,

({Dollars} in thousands and thousands)

 

 

 

 

 

 

 

2022

 

2021

Belongings:

 

 

 

 

Money and money equivalents

 

$

585.6

 

$

631.4

Commerce accounts receivable, web

 

 

658.0

 

 

711.3

Inventories

 

 

769.4

 

 

798.8

Different present belongings

 

 

119.7

 

 

154.3

Property, plant and tools, web

 

 

1,931.5

 

 

1,993.9

Different belongings, web

 

 

3,281.6

 

 

3,481.1

Complete belongings

 

$

7,345.8

 

$

7,770.8

 

 

 

 

 

Liabilities and stockholders’ fairness:

 

 

 

 

Present liabilities, excluding debt

 

$

1,357.8

 

$

1,488.2

Present and long-term debt

 

 

3,425.4

 

 

3,793.2

Different liabilities

 

 

844.3

 

 

926.7

Stockholders’ fairness

 

 

1,718.3

 

 

1,562.7

Complete liabilities and stockholders’ fairness

 

$

7,345.8

 

$

7,770.8

(a)  

Consists of rationalization costs of $0.6 million and $0.1 million for the fourth quarters of 2022 and 2021, respectively, and $1.0 million and $5.8 million for the years ended December 31, 2022 and 2021, respectively. Additionally features a cost for the write-up of stock for buy accounting of $0.7 million and $1.6 million because of the acquisition of Gateway Plastics for the quarter and 12 months ended December 31, 2021, respectively.

(b)  

Consists of rationalization costs of $66.0 million and $1.8 million for the fourth quarters of 2022 and 2021, respectively, and $73.1 million and $8.9 million for the years ended December 31, 2022 and 2021, respectively. Additionally features a cost for the write-up of stock for buy accounting of $1.0 million because of the acquisition of Easytech for the fourth quarter and 12 months ended December 31, 2021.

(c)  

Consists of rationalization costs of $0.1 million and $0.3 million for the fourth quarter and 12 months ended December 31, 2021, respectively.

(d)  

Features a cost of $25.2 million associated to the European Fee settlement for the 12 months ended December 31, 2022. Consists of prices attributed to introduced acquisitions of $0.9 million and $5.0 million for the fourth quarter and 12 months ended December 31, 2021, respectively.

 

SILGAN HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the 12 months ended December 31,

({Dollars} in thousands and thousands)

 

 

 

 

 

 

 

2022

 

2021

Money flows offered by (utilized in) working actions:

 

 

 

 

Web earnings

 

$

340.8

 

 

$

359.1

 

Changes to reconcile web earnings to web money offered by (utilized in) working actions:

 

 

 

 

Depreciation and amortization

 

 

268.2

 

 

 

255.9

 

Rationalization costs

 

 

74.1

 

 

 

15.0

 

Loss on early extinguishment of debt

 

 

1.5

 

 

 

1.4

 

Inventory compensation expense

 

 

16.8

 

 

 

20.9

 

Deferred earnings tax (profit) provision

 

 

(32.2

)

 

 

59.6

 

Different adjustments that offered (used) money, web of results from acquisitions:

 

 

 

 

Commerce accounts receivable, web

 

 

30.4

 

 

 

(81.5

)

Inventories

 

 

5.8

 

 

 

(109.5

)

Commerce accounts payable and different adjustments, web

 

 

43.0

 

 

 

35.9

 

Web money offered by working actions

 

 

748.4

 

 

 

556.8

 

 

 

 

 

 

Money flows offered by (utilized in) investing actions:

 

 

 

 

Buy of companies, web of money acquired

 

 

(2.5

)

 

 

(745.7

)

Capital expenditures

 

 

(215.8

)

 

 

(232.3

)

Different investing actions

 

 

2.7

 

 

 

2.0

 

Web money (utilized in) investing actions

 

 

(215.6

)

 

 

(976.0

)

 

 

 

 

 

Money flows offered by (utilized in) financing actions:

 

 

 

 

Dividends paid on widespread inventory

 

 

(71.9

)

 

 

(62.5

)

Modifications in excellent checks – principally distributors

 

 

(164.4

)

 

 

141.6

 

Shares repurchased beneath approved repurchase program

 

 

(45.1

)

 

 

 

Web borrowings and different financing actions

 

 

(288.2

)

 

 

569.5

 

Web money (utilized in) offered by financing actions

 

 

(569.6

)

 

 

648.6

 

 

 

 

 

 

Impact of change price adjustments on money and money equivalents

 

 

(9.0

)

 

 

(7.5

)

 

 

 

 

 

Money and money equivalents:

 

 

 

 

Web (lower) enhance

 

 

(45.8

)

 

 

221.9

 

Stability at starting of 12 months

 

 

631.4

 

 

 

409.5

 

Stability at finish of 12 months

 

$

585.6

 

 

$

631.4

 

 

 

 

 

 

Curiosity paid, web

 

$

123.7

 

 

$

101.7

 

Revenue taxes paid, web of refunds

 

 

93.9

 

 

 

94.4

 

 

 

 

 

 

 

SILGAN HOLDINGS INC.

RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE(1)

(UNAUDITED)

For the quarter and 12 months ended December 31,

 

 

 

 

 

 

 

 

 

Desk A

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

12 months Ended

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Web earnings per diluted share as reported

 

$

0.22

 

$

0.76

 

$

3.07

 

$

3.23

 

 

 

 

 

 

 

 

 

Changes:

 

 

 

 

 

 

 

 

Rationalization costs

 

 

0.62

 

 

0.01

 

 

0.67

 

 

0.11

European Fee settlement

 

 

 

 

 

 

0.23

 

 

Prices attributed to introduced acquisitions

 

 

 

 

0.01

 

 

 

 

0.03

Buy accounting write-up of stock

 

 

 

 

0.01

 

 

 

 

0.02

Loss on early extinguishment of debt

 

 

 

 

 

 

0.01

 

 

0.01

Adjusted web earnings per diluted share

 

$

0.84

 

$

0.79

 

$

3.98

 

$

3.40

 

SILGAN HOLDINGS INC.

RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE(1)

(UNAUDITED)

For the quarter and 12 months ended,

 

 

 

 

 

 

 

 

 

 

 

 

 

Desk B

 

 

 

 

 

 

 

 

 

 

 

First Quarter,

 

12 months Ended

 

 

March 31,

 

December 31,

 

 

Estimated

 

Precise

 

Estimated

 

Precise

 

 

Low

 

Excessive

 

 

 

Low

 

Excessive

 

 

 

 

2023

 

2023

 

2022

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Web earnings per diluted share as estimated for 2023 and as reported for 2022

 

$

0.65

 

$

0.75

 

$

0.76

 

 

$

3.56

 

$

3.76

 

$

3.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes:

 

 

 

 

 

 

 

 

 

 

 

 

Acquired intangible asset amortization expense

 

 

0.09

 

 

0.09

 

 

0.09

 

 

 

0.35

 

 

0.35

 

 

0.36

 

Different pension earnings for U.S. pension plans

 

 

 

 

 

 

(0.08

)

 

 

0.02

 

 

0.02

 

 

(0.33

)

Rationalization costs

 

 

0.01

 

 

0.01

 

 

0.01

 

 

 

0.02

 

 

0.02

 

 

0.67

 

European Fee settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

0.23

 

Loss on early extinguishment of debt

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

0.01

 

Adjusted web earnings per diluted share as estimated for 2023 and offered for 2022

 

$

0.75

 

$

0.85

 

$

0.79

 

 

$

3.95

 

$

4.15

 

$

4.01

 

 

SILGAN HOLDINGS INC.

RECONCILIATION OF FREE CASH FLOW (2)

(UNAUDITED)

For the 12 months ended December 31,

({Dollars} in thousands and thousands, besides per share knowledge)

 

 

 

 

 

Desk C

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

 

 

 

 

 

Web money offered by working actions

 

$

748.4

 

 

$

556.8

 

 

 

 

 

 

Capital expenditures

 

 

(215.8

)

 

 

(232.3

)

Modifications in excellent checks

 

 

(164.4

)

 

 

141.6

 

Free money movement

 

$

368.2

 

 

$

466.1

 

 

 

 

 

 

Web money offered by working actions per diluted share

 

$

6.74

 

 

$

5.01

 

 

 

 

 

 

Free money movement per diluted share

 

$

3.32

 

 

$

4.19

 

 

 

 

 

 

Weighted common diluted shares (000’s)

 

 

111,031

 

 

 

111,166

 

(1) The Firm has offered adjusted web earnings per diluted share for the intervals lined by this press launch, which measure is a Non-GAAP monetary measure. The Firm’s administration believes it’s helpful to exclude rationalization costs, prices attributed to introduced acquisitions, the influence from the cost for the write-up of acquired stock required beneath buy accounting, the loss on early extinguishment of debt, the cost for the European Fee settlement, acquired intangible asset amortization expense and different pension earnings from U.S. pension plans from its web earnings per diluted share as calculated beneath U.S. typically accepted accounting ideas as a result of such Non-GAAP monetary measure permits for a extra applicable analysis of its working outcomes. Whereas rationalization prices are incurred regularly, administration views these prices extra as an funding to generate financial savings fairly than interval prices. Prices attributed to introduced acquisitions include third celebration charges and bills which are considered by administration as a part of the acquisition and never indicative of the on-going price construction of the Firm. The write-up of acquired stock required beneath buy accounting can be considered by administration as a part of the acquisition and is a non-cash cost that’s not thought of to be indicative of the on-going efficiency of the acquired operations. The loss on early extinguishment of debt consists of third celebration charges and bills incurred or debt prices written off which are considered by administration as a part of the price of prepayment of debt and never indicative of the on-going price construction of the Firm. The cost for the European Fee settlement is non-recurring and non-operational and pertains to prior years and isn’t indicative of the on-going price construction of the Firm. Acquired intangible asset amortization expense is a non-cash expense associated to acquired operations that’s not indicative of the on-going efficiency of the acquired operations. Because the Firm’s U.S. pension plans are considerably over funded and haven’t any required money contributions for the foreseeable future based mostly on present laws, administration views different pension earnings from the Firm’s U.S. pension plans, which excludes service prices, as not reflective of the operational efficiency of the Firm. Such Non-GAAP monetary measure will not be in accordance with U.S. typically accepted accounting ideas and shouldn’t be thought of in isolation however needs to be learn at the side of the unaudited condensed consolidated statements of earnings and the opposite data offered herein. Moreover, such Non-GAAP monetary measure shouldn’t be thought of an alternative to web earnings per diluted share as calculated beneath U.S. typically accepted accounting ideas and will not be akin to equally titled measures of different firms.

(2) The Firm has offered free money movement on this press launch, which is a Non-GAAP monetary measure. The Firm’s administration believes that free money movement is vital to help its said enterprise technique of investing in inside progress and acquisitions. Free money movement is outlined as web money offered by working actions adjusted for adjustments in excellent checks and decreased by capital expenditures. At instances, there could also be different uncommon money objects that can be excluded from free money movement. Web money offered by working actions is essentially the most comparable monetary measure beneath U.S. typically accepted accounting ideas to free money movement, and it shouldn’t be inferred that your entire free money movement quantity is out there for discretionary expenditures. Such Non-GAAP monetary measure will not be in accordance with U.S. typically accepted accounting ideas and shouldn’t be thought of in isolation however needs to be learn at the side of the unaudited condensed consolidated statements of money flows and the opposite data offered herein. Moreover, such Non-GAAP monetary measure shouldn’t be thought of an alternative to web money offered by working actions as calculated beneath U.S. typically accepted accounting ideas and will not be akin to equally titled measures of different firms.