Highlights
- Continued growth in high value dispensing products; anticipates
further growth in 2024
- Record annual adjusted EBIT in Metal Containers
- Announced a multi-year $50 million cost reduction program
- Returned over $250 million to shareholders through share
repurchases and dividends
Silgan Holdings Inc. (NYSE: SLGN), a leading supplier of
sustainable rigid packaging solutions for the world's essential
consumer goods products, today reported full year 2023 net sales of
$6.0 billion and net income of $326.0 million, or $2.98 per diluted
share, as compared to full year 2022 net sales of $6.4 billion and
net income of $340.8 million, or $3.07 per diluted share.
Adjusted net income per diluted share for the full year of 2023
was $3.40, after adjustments increasing net income per diluted
share by $0.42. Adjusted net income per diluted share for the full
year of 2022, which included $0.09 per diluted share from
non-recurring income associated with Russia, was a record $4.01
after adjustments increasing net income per diluted share by $0.94.
A reconciliation of net income per diluted share to "adjusted net
income per diluted share," a Non-GAAP financial measure used by the
Company that adjusts net income per diluted share for certain
items, can be found in Table A at the back of this press
release.
"The Silgan team navigated yet another year of unprecedented
volume fluctuations and volatile market conditions, and delivered
strong performance in a challenging economic environment. We are
pleased to have achieved the second highest annual adjusted
earnings in the Company’s history, and our robust and reliable cash
generation allowed us to return over $250 million to shareholders
during the year. Our unique business model and proven ability to
rapidly adapt to changing market dynamics continue to create
significant value for our shareholders as demonstrated by our
10-year CAGR for adjusted EPS of 10 percent," said Adam Greenlee,
President and CEO.
"In 2023, market leading innovation in our high value dispensing
products continued to drive strong growth with new and existing
customers, mix enhancement and margin expansion for the Company,
while our Metal Containers segment delivered another year of record
profit. As we turn to 2024, we continue to execute our strategic
growth initiatives and remain confident that these efforts will
drive earnings and cash flow growth in the year. The actions we
have already taken to date position the Company to deliver our $50
million cost reduction initiative over the next two years,"
continued Mr. Greenlee. "We have seen early signs of recovery in
certain categories from the customer destocking activities that
impacted 2023, and we expect these favorable trends to continue to
improve during the first half of the year. We believe that our
future success will be driven by competing and winning in our
markets, building upon and expanding the strong foundation of our
customer partnerships and maintaining a disciplined approach to
capital deployment. Our business fundamentals and balance sheet
remain strong, and the entire Silgan team is focused on executing
and driving growth in 2024 and beyond," concluded Mr. Greenlee.
Fourth Quarter Results
Net sales for the fourth quarter of 2023 were $1.3 billion, a
decrease of $115.3 million, or 8%, as compared to the same period
in the prior year predominantly as a result of lower volumes. Net
income for the fourth quarter of 2023 was $64.4 million, or $0.60
per diluted share, as compared to net income of $24.6 million, or
$0.22 per diluted share, for the fourth quarter of 2022. Adjusted
net income per diluted share for the fourth quarter of 2023 was
$0.63, after adjustments increasing net income per diluted share by
$0.03. Adjusted net income per diluted share for the fourth quarter
of 2022 was a record $0.85, after adjustments increasing net income
per diluted share by $0.63.
Income before interest and income taxes (EBIT) for the fourth
quarter of 2023 was $126.1 million, an increase of $45.0 million as
compared to $81.1 million for the fourth quarter of 2022
principally due to $66.6 million of rationalization charges in the
prior year period. EBIT in the Dispensing and Specialty Closures,
Metal Containers and Custom Containers segments were $68.4 million,
$55.8 million, and $6.8 million, respectively, in the fourth
quarter of 2023. In the fourth quarters of 2023 and 2022, we
recorded rationalization credits of $(4.8) million and
rationalization charges of $66.6 million, respectively. The fourth
quarter of 2023 included a favorable adjustment to the non-cash
write-down of assets in Russia in the prior year period. A
reconciliation of EBIT for each segment to adjusted EBIT, a
Non-GAAP financial measure used by the Company that adjusts EBIT
for certain items, can be found in Table B at the back of this
press release.
Interest and other debt expense for the fourth quarter of 2023
was $42.5 million, an increase of $7.9 million as compared to the
fourth quarter of 2022 primarily due to the impact of higher
interest rates.
The effective tax rates were 23.0% and 47.2% for the fourth
quarters of 2023 and 2022, respectively. The effective tax rate in
the prior year period was unfavorably impacted by the write-off of
net assets related to operations in Russia which was
non-deductible.
Fourth Quarter Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
$522.3 million in the fourth quarter of 2023, a decrease of $18.5
million, or 3%, as compared to $540.8 million in the fourth quarter
of 2022 which included non-recurring sales associated with Russia
(Russia Sales) of $3.1 million. The decline in sales from the prior
year period was primarily the result of lower volume/mix of 5% due
to customer destocking activities in food and beverage markets and
double digit declines in higher volume metal closures for
international food and beverage markets due to the ongoing impact
of inflation on consumers, which was partially offset by favorable
foreign currency translation of 3%.
Dispensing and Specialty Closures adjusted EBIT increased $12.4
million to $87.0 million in the fourth quarter of 2023 as compared
to $74.6 million in the fourth quarter of 2022. The increase in
adjusted EBIT was driven primarily by improved price/cost as a
result of lower manufacturing costs, partially offset by lower
volumes for food and beverage products.
Metal Containers
Net sales of the Metal Containers segment were $665.3 million in
the fourth quarter of 2023, a decrease of $89.3 million, or 12%, as
compared to $754.6 million in the fourth quarter of 2022. Net sales
in the Metal Containers segment decreased 10% in the fourth quarter
of 2023 as compared to the same period in 2022, excluding the
impact of Russia Sales of $12.2 million in the fourth quarter of
2022. This decrease was the result of lower unit volume of 7%, with
expected customer destocking activities impacting several
categories during the quarter, and the impact of less favorable
price/mix of 4%, partially offset by favorable foreign currency
translation of 1%.
Metal Containers adjusted EBIT decreased $27.4 million to $40.8
million in the fourth quarter of 2023 as compared to $68.2 million
in the fourth quarter of 2022. As expected, the decline in adjusted
EBIT in the quarter was primarily the result of the benefit in the
prior year period from inventory management which did not repeat in
2023 and lower volumes in the quarter as a result of expected
customer destocking activities.
Custom Containers
Net sales of the Custom Containers segment were $152.5 million
in the fourth quarter of 2023, a decrease of $7.5 million, or 5%,
as compared to $160.0 million in the fourth quarter of 2022. This
decrease was primarily the result of an expected volume reduction
of 2% due largely to customer destocking activity, as well as lower
price/mix of 2% due to the pass through of lower resin costs and a
less favorable mix of products sold.
Custom Containers adjusted EBIT increased $1.8 million to $13.0
million in the fourth quarter of 2023 as compared to $11.2 million
in the fourth quarter of 2022. The increase in adjusted EBIT was
primarily the result of improved price/cost primarily due to cost
management.
Full Year Results
Net sales for 2023 were $6.0 billion, a decrease of $423.3
million, or 7%, as compared to $6.4 billion in the prior year.
Excluding Russia Sales of $70.6 million in 2022, 2023 net sales
declined 6% primarily as a result of lower volumes across all
segments due mostly to customer destocking activities in food,
beverage, and pet food end markets, which was partly offset by
favorable foreign currency translation.
Income before interest and income taxes (EBIT) for 2023 was
$595.4 million, a decrease of $6.6 million as compared to $602.0
million for 2022. EBIT in the Dispensing and Specialty Closures,
Metal Containers and Custom Containers segments were $281.0
million, $287.4 million, and $52.8 million, respectively, in 2023.
Rationalization charges were $8.4 million and $74.1 million in 2023
and 2022, respectively. A reconciliation of EBIT for each segment
to adjusted EBIT, a Non-GAAP financial measure used by the Company
that adjusts EBIT for certain items, can be found in Table B at the
back of this press release.
Interest and other debt expense for 2023 was $173.3 million, an
increase of $45.5 million as compared to 2022 primarily due to the
impact of higher interest rates.
The effective tax rates were 22.8% and 28.1% for 2023 and 2022,
respectively. The effective tax rate in 2022 was unfavorably
impacted by the write-off of net assets related to operations in
Russia and the European Commission settlement, both of which were
non-deductible.
The Company reported net cash provided by operating activities
of $482.6 million in 2023 as compared to $748.4 million in 2022.
Free cash flow for 2023 was $356.7 million as compared to $371.6
million in 2022. The decrease in free cash flow was due primarily
to lower net income and higher capital expenditures in 2023, which
was partially offset by a lesser use of cash for changes in working
capital including changes in outstanding checks. The Company is
providing a reconciliation in Table D of this press release of net
cash provided by operating activities to “free cash flow,” a
Non-GAAP financial measure used by the Company which adjusts net
cash provided by operating activities for certain items.
Full Year Segment Results
Dispensing and Specialty Closures
Net sales of the Dispensing and Specialty Closures segment were
$2.2 billion 2023, a decrease of $95.3 million, or 4%, as compared
to $2.3 billion in 2022. Excluding Russia Sales of $16.3 million in
2022, net sales declined 3% from the prior year as a result of
lower volume/mix of 4%, with growth in high value dispensing
products more than offset by customer destocking activities in food
and beverage markets and double digit declines in higher volume
metal closures for international food and beverage markets due to
the ongoing impact of inflation on consumers. The decrease in
volume/mix was partly offset by favorable foreign currency
translation of 1%.
Dispensing and Specialty Closures adjusted EBIT decreased $19.2
million to $340.6 million in 2023 as compared to $359.8 million in
2022. The decrease in adjusted EBIT was driven primarily by lower
volume/mix and the prior year cost recovery for certain customer
project expenditures, which was partly offset by favorable
price/cost including from SG&A cost management. Dispensing and
Specialty Closures adjusted EBIT was also negatively impacted in
2023 by labor challenges that limited output at a U.S. food and
beverage closures facility and drove higher costs.
Metal Containers
Net sales of the Metal Containers segment were $3.1 billion in
2023, a decrease of $231.0 million, or 7%, as compared to $3.4
billion in 2022. Net sales in the Metal Containers segment
decreased 5% in 2023 as compared to 2022, excluding the impact of
Russia Sales of $54.3 million in 2022. This decrease was the result
of lower unit volume of 5%, with lower volumes across several
categories due to customer destocking activities.
Metal Containers adjusted EBIT increased $0.2 million to a
record $282.4 million in 2023 as compared to $282.2 million in
2022. Adjusted EBIT increased as a result of favorable price/cost
including mix due to the lagged contractual pass through of labor
and other manufacturing cost inflation, lower SG&A costs and
favorable foreign currency which more than offset the impact of
lower volumes as a result of customer destocking activity.
Custom Containers
Net sales of the Custom Containers segment were $626.0 million
in 2023, a decrease of $97.0 million, or 13%, as compared to $723.0
million in 2022. This decrease was primarily the result of an
expected volume reduction of 9% due to customer destocking programs
and the planned non-renewal of contractual business that did not
meet reinvestment criteria, as well as lower price/mix of 3% due to
the pass through of lower resin costs and a less favorable mix of
products sold.
Custom Containers adjusted EBIT decreased $23.5 million to $63.3
million in 2023 as compared to $86.8 million in 2022. The decrease
in adjusted EBIT was primarily the result of lower volumes.
Outlook for 2024
The Company currently estimates adjusted net income per diluted
share for the full year of 2024 will be in the range of $3.55 to
$3.75, a 7% increase at the midpoint of the range over adjusted net
income per diluted share of $3.40 in 2023. Volumes in the
Dispensing and Specialty Closures and Metal Containers segments for
2024 are expected to be higher than 2023 levels, and volumes in the
Custom Containers segment are expected to be comparable to the
prior year. Adjusted net income per diluted share excludes certain
items as outlined in Table C at the back of this press release.
The Company anticipates interest and other debt expense in 2024
of approximately $170 million and an effective tax rate for 2024 of
approximately 24 - 25%.
The Company currently estimates that free cash flow in 2024 will
be approximately $375 million as compared to $356.7 million in
2023. Capital expenditures are expected to be approximately $240
million in 2024.
For the first quarter of 2024, the Company expects the impact of
customer destocking to continue to impact volumes, with a low
single digit volume decline in the Dispensing and Specialty
Closures and Metal Containers segments and a mid-to-high single
digit volume decline in the Custom Containers segment as compared
to the prior year period. The Company is providing an estimate of
adjusted net income per diluted share for the first quarter of 2024
in the range of $0.60 to $0.70, as compared to $0.78 in the first
quarter of 2023. Adjusted net income per diluted share excludes
certain items as outlined in Table C at the back of this press
release.
Conference Call
Silgan Holdings Inc. will hold a conference call to discuss the
Company’s results for the fourth quarter and full year of 2023 at
11:00 a.m. eastern time on Wednesday, January 31, 2024. The
conference call audio will be webcast live, and both the webcast
and this press release can be accessed at www.silganholdings.com.
Those who wish to participate in the conference call via
teleconference from the U.S. and Canada should dial (888) 256-1007
and from outside the U.S. and Canada should dial (323) 794-2575.
The confirmation code for the conference call is 2504193. The audio
webcast can be accessed at www.silganholdings.com and will be
available for 90 days thereafter for those who are unable to listen
to the live call.
* * *
Silgan is a leading supplier of sustainable rigid packaging
solutions for the world's essential consumer goods products with
annual net sales of approximately $6.0 billion in 2023. Silgan
operates 107 manufacturing facilities in North and South America,
Europe and Asia. The Company is a leading worldwide supplier of
dispensing and specialty closures for food, beverage, health care,
garden, home, personal care, fragrance and beauty products. The
Company is also a leading supplier of metal containers in North
America and Europe for food and general line products. In addition,
the Company is a leading supplier of custom containers for
shelf-stable food and personal care products in North America.
Statements included in this press release which are not
historical facts are forward looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934, as
amended. Such forward looking statements are made based upon
management’s expectations and beliefs concerning future events
impacting the Company and therefore involve a number of
uncertainties and risks, including, but not limited to, those
described in the Company’s Annual Report on Form 10-K for 2022 and
other filings with the Securities and Exchange Commission.
Therefore, the actual results of operations or financial condition
of the Company could differ materially from those expressed or
implied in such forward looking statements.
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars and shares in millions,
except per share amounts)
Fourth
Quarter
Year
Ended
2023
2022
2023
2022
Net sales
$
1,340.1
$
1,455.4
$
5,988.2
$
6,411.5
Cost of goods sold
1,121.6
1,222.7
4,995.6
5,363.7
Gross profit
218.5
232.7
992.6
1,047.8
Selling, general and administrative
expenses
96.5
96.5
384.4
416.9
Rationalization (credits) charges
(4.8
)
66.6
8.4
74.1
Other pension and postretirement expense
(income)
0.7
(11.5
)
4.4
(45.2
)
Income before interest and income
taxes
126.1
81.1
595.4
602.0
Interest and other debt expense before
loss on early
extinguishment of debt
42.5
34.6
173.3
126.3
Loss on early extinguishment of debt
—
—
—
1.5
Interest and other debt expense
42.5
34.6
173.3
127.8
Income before income taxes
83.6
46.5
422.1
474.2
Provision for income taxes
19.2
21.9
96.1
133.4
Net income
$
64.4
$
24.6
$
326.0
$
340.8
Earnings per share (EPS):
Basic net income per share
$
0.60
$
0.22
$
3.00
$
3.09
Diluted net income per share
$
0.60
$
0.22
$
2.98
$
3.07
Cash dividends per common share
$
0.18
$
0.16
$
0.72
$
0.64
Weighted average shares:
Basic
106.6
110.1
108.8
110.5
Diluted
106.9
110.8
109.2
111.0
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(Dollars in millions)
Dec. 31,
Dec. 31,
2023
2022
Assets:
Cash and cash equivalents
$
642.9
$
585.6
Trade accounts receivable, net
599.5
658.0
Inventories
940.8
769.4
Other current assets
165.7
119.7
Property, plant and equipment, net
1,961.6
1,931.5
Other assets, net
3,300.7
3,281.6
Total assets
$
7,611.2
$
7,345.8
Liabilities and stockholders' equity:
Current liabilities, excluding debt
$
1,431.4
$
1,357.8
Current and long-term debt
3,426.8
3,425.4
Other liabilities
863.6
844.3
Stockholders' equity
1,889.4
1,718.3
Total liabilities and stockholders'
equity
$
7,611.2
$
7,345.8
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the year ended December
31,
(Dollars in millions)
2023
2022
Cash flows provided by (used in) operating
activities:
Net income
$
326.0
$
340.8
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
268.6
268.2
Rationalization charges
8.4
74.1
Loss on early extinguishment of debt
—
1.5
Stock compensation expense
15.6
16.8
Deferred income tax provision
(benefit)
33.1
(32.2
)
Other changes that provided (used) cash,
net of effects from acquisitions:
Trade accounts receivable, net
73.7
30.4
Inventories
(162.3
)
5.8
Trade accounts payable and other changes,
net
(80.5
)
43.0
Net cash provided by operating
activities
482.6
748.4
Cash flows provided by (used in) investing
activities:
Purchase of businesses, net of cash
acquired
—
(2.5
)
Capital expenditures
(226.8
)
(215.8
)
Proceeds from asset sales
1.8
3.4
Other investing activities
1.2
(0.7
)
Net cash (used in) investing
activities
(223.8
)
(215.6
)
Cash flows provided by (used in) financing
activities:
Dividends paid on common stock
(78.9
)
(71.9
)
Changes in outstanding checks -
principally vendors
99.1
(164.4
)
Shares repurchased under authorized
repurchase program
(174.7
)
(45.1
)
Net borrowings and other financing
activities
(56.9
)
(288.2
)
Net cash (used in) financing
activities
(211.4
)
(569.6
)
Effect of exchange rate changes on cash
and cash equivalents
9.9
(9.0
)
Cash and cash equivalents:
Net increase (decrease)
57.3
(45.8
)
Balance at beginning of year
585.6
631.4
Balance at end of period
$
642.9
$
585.6
SILGAN HOLDINGS INC.
CONSOLIDATED SUPPLEMENTAL
SEGMENT FINANCIAL DATA
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars in millions)
Fourth
Quarter
Year
Ended
2023
2022
2023
2022
Net sales:
Dispensing and Specialty Closures
$
522.3
$
540.8
$
2,221.4
$
2,316.7
Metal Containers
665.3
754.6
3,140.8
3,371.8
Custom Containers
152.5
160.0
626.0
723.0
Consolidated
$
1,340.1
$
1,455.4
$
5,988.2
$
6,411.5
Income before interest and income taxes
(EBIT)
Dispensing and Specialty Closures
$
68.4
$
65.2
$
281.0
$
323.0
Metal Containers
55.8
8.5
287.4
234.2
Custom Containers
6.8
12.6
52.8
92.5
Corporate
(4.9
)
(5.2
)
(25.8
)
(47.7
)
Consolidated
$
126.1
$
81.1
$
595.4
$
602.0
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED NET
INCOME PER DILUTED SHARE (1)
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars and shares in millions,
except per share amounts)
Table
A
Fourth
Quarter
Year
Ended
2023
2022
2023
2022
Net
Diluted
Net
Diluted
Net
Diluted
Net
Diluted
Income
EPS
Income
EPS
Income
EPS
Income
EPS
U.S. GAAP net income and diluted EPS
$
64.4
$
0.60
$
24.6
$
0.22
$
326.0
$
2.98
$
340.8
$
3.07
Adjustments (a)
3.2
0.03
69.6
0.63
45.5
0.42
104.6
0.94
Non-U.S. GAAP adjusted net income and
adjusted diluted EPS
$
67.6
$
0.63
$
94.2
$
0.85
$
371.5
$
3.40
$
445.4
$
4.01
Weighted average number of common shares
outstanding - Diluted
106.9
110.8
109.2
111.0
(a) Adjustments consist of items in the
table below
Fourth
Quarter
Year
Ended
2023
2022
2023
2022
Adjustments:
Acquired intangible asset amortization
expense
$
13.3
$
13.0
$
53.1
$
52.5
Other pension expense (income) for U.S.
pension plans
1.3
(11.9
)
3.6
(47.5
)
Rationalization (credits) charges
(4.8
)
66.6
8.4
74.1
European Commission settlement
—
—
—
25.2
Loss on early extinguishment of debt
—
—
—
1.5
Pre-tax impact of adjustments
9.8
67.7
65.1
105.8
Tax impact of adjustments
6.6
(1.9
)
19.6
1.2
Net impact of adjustments
$
3.2
$
69.6
$
45.5
$
104.6
Weighted average number of common shares
outstanding - Diluted
106.9
110.8
109.2
111.0
Diluted EPS impact from adjustments
$
0.03
$
0.63
$
0.42
$
0.94
Adjusted tax rate
27.7
%
17.5
%
23.8
%
23.2
%
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED
EBIT (2)
(UNAUDITED)
For the quarter and year ended
December 31,
(Dollars in millions)
Table
B
Fourth
Quarter
Year
Ended
2023
2022
2023
2022
Dispensing and Specialty
Closures:
Income before interest and income taxes
(EBIT)
$
68.4
$
65.2
$
281.0
$
323.0
Acquired intangible asset amortization
expense
11.8
11.6
47.2
46.8
Other pension expense (income) for U.S.
pension plans
0.7
(2.8
)
1.1
(11.0
)
Rationalization charges
6.1
0.6
11.3
1.0
Adjusted EBIT
$
87.0
$
74.6
$
340.6
$
359.8
Metal Containers:
Income before interest and income taxes
(EBIT)
$
55.8
$
8.5
$
287.4
$
234.2
Acquired intangible asset amortization
expense
0.4
0.3
1.4
1.2
Other pension expense (income) for U.S.
pension plans
0.4
(6.6
)
1.5
(26.3
)
Rationalization (credits) charges
(15.8
)
66.0
(7.9
)
73.1
Adjusted EBIT
$
40.8
$
68.2
$
282.4
$
282.2
Custom Containers:
Income before interest and income taxes
(EBIT)
$
6.8
$
12.6
$
52.8
$
92.5
Acquired intangible asset amortization
expense
1.1
1.1
4.5
4.5
Other pension expense (income) for U.S.
pension plans
0.2
(2.5
)
1.0
(10.2
)
Rationalization charges
4.9
—
5.0
—
Adjusted EBIT
$
13.0
$
11.2
$
63.3
$
86.8
Corporate:
Loss before interest and income taxes
(EBIT)
$
(4.9
)
$
(5.2
)
$
(25.8
)
$
(47.7
)
European Commission settlement
—
—
—
25.2
Adjusted EBIT
$
(4.9
)
$
(5.2
)
$
(25.8
)
$
(22.5
)
Total adjusted EBIT
$
135.9
$
148.8
$
660.5
$
706.3
SILGAN HOLDINGS INC.
RECONCILIATION OF ADJUSTED NET
INCOME PER DILUTED SHARE (1)
(UNAUDITED)
For the quarter and year
ended,
(Dollars and shares in millions,
except per share amounts)
Table
C
First
Quarter,
Year
Ended
March
31,
December
31,
Estimated
Actual
Estimated
Actual
Low
High
Low
High
2024
2024
2023
2024
2024
2023
U.S. GAAP net income as estimated for 2024
and as reported for 2023
$
50.6
$
61.3
$
72.0
$
338.8
$
360.3
$
326.0
Adjustments (a)
13.7
13.7
14.4
42.1
42.1
45.5
Non-U.S. GAAP adjusted net income as
estimated for 2024 and presented for 2023
$
64.3
$
75.0
$
86.4
$
380.9
$
402.4
$
371.5
U.S. GAAP diluted EPS as estimated for
2024 and as reported for 2023
$
0.47
$
0.57
$
0.65
$
3.16
$
3.36
$
2.98
Adjustments (a)
0.13
0.13
0.13
0.39
0.39
0.42
Non-U.S. GAAP adjusted diluted EPS as
estimated for 2024 and presented for 2023
$
0.60
$
0.70
$
0.78
$
3.55
$
3.75
$
3.40
(a) Adjustments consist of items in the
table below
First
Quarter,
Year
Ended
March
31,
December
31,
2024
2023
2024
2023
Estimated
Actual
Estimated
Actual
Adjustments:
Acquired intangible asset amortization
expense
$
13.4
$
13.2
$
50.4
$
53.1
Other pension (income) expense for U.S.
pension plans
(1.2
)
0.9
(4.8
)
3.6
Rationalization charges
5.9
4.1
10.1
8.4
Pre-tax impact of adjustments
18.1
18.2
55.7
65.1
Tax impact of adjustments
4.4
3.8
13.6
19.6
Net impact of adjustments
$
13.7
$
14.4
$
42.1
$
45.5
Weighted average number of common shares
outstanding - Diluted
107.1
110.8
107.3
109.2
Diluted EPS impact from adjustments
$
0.13
$
0.13
$
0.39
$
0.42
SILGAN HOLDINGS INC.
RECONCILIATION OF FREE CASH
FLOW (3)
(UNAUDITED)
For the year ended December
31,
(Dollars and shares in millions,
except per share amounts)
Table
D
2023
2022
Net cash provided by operating
activities
$
482.6
$
748.4
Capital expenditures
(226.8
)
(215.8
)
Proceeds from asset sales
1.8
3.4
Changes in outstanding checks
99.1
(164.4
)
Free cash flow
$
356.7
$
371.6
Net cash provided by operating activities
per diluted share
$
4.42
$
6.74
Free cash flow per diluted share
$
3.27
$
3.35
Weighted average diluted shares
109.2
111.0
(1) The Company has presented adjusted net income per diluted
share for the periods covered by this press release, which measure
is a Non-GAAP financial measure. The Company’s management believes
it is useful to exclude acquired intangible asset amortization
expense, other pension expense (income) for U.S. pension plans,
rationalization charges (credits), the charge for the European
Commission settlement and the loss on early extinguishment of debt
from its net income per diluted share as calculated under U.S.
generally accepted accounting principles because such Non-GAAP
financial measure allows for a more appropriate evaluation of its
operating results. Acquired intangible asset amortization expense
is a non-cash expense related to acquired operations that
management believes is not indicative of the on-going performance
of the acquired operations. Since the Company's U.S. pension plans
are significantly over funded and have no required cash
contributions for the foreseeable future based on current
regulations, management views other pension expense (income) from
the Company's U.S. pension plans, which excludes service costs, as
not reflective of the operational performance of the Company or its
segments. While rationalization costs are incurred on a regular
basis, management views these costs more as an investment to
generate savings rather than period costs. The charge for the
European Commission settlement is non-recurring and non-operational
and relates to prior years and is not indicative of the on-going
cost structure of the Company. The loss on early extinguishment of
debt consists of third party fees and expenses incurred or debt
costs written off that are viewed by management as part of the cost
of prepayment of debt and not indicative of the on-going cost
structure of the Company. Such Non-GAAP financial measure is not in
accordance with U.S. generally accepted accounting principles and
should not be considered in isolation but should be read in
conjunction with the unaudited condensed consolidated statements of
income and the other information presented herein. Additionally,
such Non-GAAP financial measure should not be considered a
substitute for net income per diluted share as calculated under
U.S. generally accepted accounting principles and may not be
comparable to similarly titled measures of other companies.
(2) The Company has presented adjusted EBIT for the periods
covered by this press release, which measure is a Non-GAAP
financial measure. The Company’s management believes it is useful
to exclude acquired intangible asset amortization expense, other
pension expense (income) for U.S. pension plans, rationalization
charges (credits) and the charge for the European Commission
settlement from EBIT for the Company and each of its segments as
calculated under U.S. generally accepted accounting principles
because such Non-GAAP financial measure allows for a more
appropriate evaluation of operating results. Acquired intangible
asset amortization expense is a non-cash expense related to
acquired operations that management believes is not indicative of
the on-going performance of the acquired operations. Since the
Company's U.S. pension plans are significantly over funded and have
no required cash contributions for the foreseeable future based on
current regulations, management views other pension expense
(income) from the Company's U.S. pension plans, which excludes
service costs, as not reflective of the operational performance of
the Company or its segments. While rationalization costs are
incurred on a regular basis, management views these costs more as
an investment to generate savings rather than period costs. The
charge for the European Commission settlement is non-recurring and
non-operational and relates to prior years and is not indicative of
the on-going cost structure of the Company. Such Non-GAAP financial
measure is not in accordance with U.S. generally accepted
accounting principles and should not be considered in isolation but
should be read in conjunction with the unaudited condensed
consolidated statements of income and the other information
presented herein. Additionally, such Non-GAAP financial measure
should not be considered a substitute for income before interest
and income taxes (EBIT) as calculated under U.S. generally accepted
accounting principles and may not be comparable to similarly titled
measures of other companies.
(3) The Company has presented free cash flow in this press
release, which is a Non-GAAP financial measure. The Company’s
management believes that free cash flow is important to support its
stated business strategy of investing in internal growth and
acquisitions. 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. At times, there may be other unusual cash items that
will be excluded from free cash flow. Net cash provided by
operating activities is the most comparable financial measure under
U.S. generally accepted accounting principles to free cash flow,
and it should not be inferred that the entire free cash flow amount
is available for discretionary expenditures. Such Non-GAAP
financial measure is not in accordance with U.S. generally accepted
accounting principles and should not be considered in isolation but
should be read in conjunction with the unaudited condensed
consolidated statements of cash flows and the other information
presented herein. Additionally, such Non-GAAP financial measure
should not be considered a substitute for net cash provided by
operating activities as calculated under U.S. generally accepted
accounting principles and may not be comparable to similarly titled
measures of other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131607022/en/
Alexander Hutter Vice President, Investor Relations
AHutter@silgan.com 203-406-3187
Silgan (NYSE:SLGN)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Silgan (NYSE:SLGN)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
