TAMPA,
Fla., July 24, 2023 /PRNewswire/ -- Crown
Holdings, Inc. (NYSE: CCK) today announced its financial results
for the second quarter ended June 30,
2023.
Net sales in the second quarter were $3,109 million compared to $3,510 million in the second quarter of 2022
reflecting higher beverage can volumes in Americas Beverage and
favorable foreign currency translation of $11 million, offset by the pass through of
$288 million in lower material costs
and lower volumes across most other businesses.
Income from operations was $367
million in the second quarter compared to $466 million in the second quarter of 2022, which
included a gain of $113 million for
the sale of the Transit Packaging segment's Kiwiplan
business. Segment income in the second quarter of 2023 was
$414 million compared to $432 million in the prior year second quarter as
benefits from the contractual recovery of prior years' inflationary
cost increases in European Beverage and cost reduction initiatives
in Transit Packaging were offset by lower volumes.
Commenting on the quarter, Timothy J.
Donahue, Chairman, President and Chief Executive Officer,
stated, "The Company performed well during the second quarter, as
strong results in European Beverage and Transit Packaging offset
softer than expected beverage can volumes in Asia and sluggish aerosol can demand in North
America. Cumulative inflationary effects and challenging
macroeconomic conditions in certain markets continue to adversely
impact volumes. In North America, we anticipate increased
second half beverage can shipment levels as retail promotional
activity, while still somewhat limited, is expected for carbonated
soft drinks. The benefits from actions taken in 2022 to
negotiate more comprehensive raw material and other inflationary
pass-through provisions in European Beverage and a significant
overhead reduction program initiated in Transit Packaging are
expected to continue to yield benefits throughout the remainder of
the year.
"Looking ahead, we believe that the beverage can remains the
preferred packaging option for customers and consumers alike, in
part due to its unmatched sustainability benefits and infinite
recyclability. As we near completion in late 2023 of the
multi-year program to profitably expand global beverage can
production capacity to support expanded customer requirements, the
Company expects capital expenditures to be significantly reduced in
2024 and 2025 from this year's $900
million to approximately $500
million and we plan to use increased cash flow to pay down
debt and return capital to shareholders."
Interest expense was $110 million
in the second quarter of 2023 compared to $64 million in the second quarter of 2022
reflecting higher outstanding debt and higher interest rates.
Net income attributable to Crown Holdings in the second quarter
was $157 million compared to
$295 million in the second quarter of
2022. Reported diluted earnings per share were $1.31 in the second quarter of 2023 compared to
$2.43 in 2022 and adjusted diluted
earnings per share were $1.68
compared to $2.10 in 2022.
Six Month Results
Net sales for the first six months
of 2023 were $6,083 million compared
to $6,672 million in the first six
months of 2022, primarily due to the pass through of $388 million in lower material costs, lower
overall net volumes and unfavorable foreign currency translation of
$25 million, partially offset by
higher beverage can volumes in Americas Beverage.
Income from operations was $636
million in the first half of 2023 compared to $810 million in the first half of 2022, which
included a gain of $113 million for
the sale of the Transit Packaging segment's Kiwiplan business.
Segment income in the first half of 2023 was $734 million versus $815
million in the prior year period, reflecting benefits from
the contractual recovery of prior year's inflationary cost
increases in European Beverage and cost reduction initiatives in
Transit Packaging, offset by $60
million of year over year inventory impact of steel
repricing in the Other segment and lower volumes.
Interest expense was $212 million
for the first six months of 2023 compared to $118 million in 2022 primarily due to higher
outstanding debt balances and higher interest rates.
Net income attributable to Crown Holdings in the first six
months of 2023 was $259 million
compared to $511 million in the first
six months of 2022. Reported diluted earnings per share were
$2.16 compared to $4.15 in 2022 and adjusted diluted earnings per
share were $2.88 compared to
$4.11 in 2022.
Outlook
We continue to expect full year improved
operating results in global beverage as well as in Transit
Packaging.
Third quarter adjusted diluted earnings per share are expected
to be in the range of $1.70 to
$1.80 and full year 2023 adjusted
diluted earnings per share in the range of $6.10 to $6.30
reflecting the impacts of higher transactional foreign exchange
expense and lower equity earnings from our previous guidance.
We affirm our previously issued guidance of adjusted EBITDA
growth between 8% and 12% for 2023 with an expected adjusted
effective tax rate between 24% and 25%. Adjusted free cash
flow is expected to be approximately $500
million after $900 million of
capital expenditures and approximately $100
million in benefits from lower working capital.
Through six months, working capital performance is on plan, as we
realize efforts to reduce elevated inventory levels from the prior
year end.
Non-GAAP Measures
Segment income, adjusted free cash
flow, adjusted net leverage ratio, adjusted net income, the
adjusted effective tax rate, adjusted diluted earnings per share,
net interest expense, EBITDA and adjusted EBITDA are not defined
terms under U.S. generally accepted accounting principles (non-GAAP
measures). Non-GAAP measures should not be considered in
isolation or as a substitute for income from operations, cash flow,
leverage ratio, net income, effective tax rates, diluted earnings
per share or interest expense and interest income prepared in
accordance with U.S. GAAP and may not be comparable to calculations
of similarly titled measures by other companies.
The Company views segment income as the principal measure of the
performance of its operations and adjusted free cash flow and
adjusted net leverage ratio as the principal measures of its
liquidity. The Company considers all of these measures in the
allocation of resources. Adjusted free cash flow has certain
limitations, however, including that it does not represent the
residual cash flow available for discretionary expenditures since
other non-discretionary expenditures, such as mandatory debt
service requirements, are not deducted from the measure. The
amount of mandatory versus discretionary expenditures can vary
significantly between periods. The Company believes that
adjusted free cash flow and adjusted net leverage ratio provide
meaningful measures of liquidity and a useful basis for assessing
the Company's ability to fund its activities, including the
financing of acquisitions, debt repayments, share repurchases or
dividends. The Company believes that adjusted net income, the
adjusted effective tax rate and adjusted diluted earnings per share
are useful in evaluating the Company's operations as these measures
are adjusted for items that affect comparability between
periods. Segment income, adjusted free cash flow, adjusted
net leverage ratio, adjusted net income, the adjusted effective tax
rate, adjusted diluted earnings per share, net interest expense,
EBITDA and adjusted EBITDA are derived from the Company's
Consolidated Statements of Operations, Cash Flows and Consolidated
Balance Sheets, as applicable, and reconciliations to segment
income, adjusted free cash flow, adjusted net leverage ratio,
adjusted net income, the adjusted effective tax rate, adjusted
diluted earnings per share and adjusted EBITDA can be found within
this release. Reconciliations of estimated adjusted diluted
earnings per share for the third quarter and full year of 2023 to
estimated diluted earnings per share on a GAAP basis are not
provided in this release due to the unavailability of estimates of
the following, the timing and magnitude of which the Company is
unable to reliably forecast without unreasonable efforts, which are
excluded from estimated adjusted diluted earnings per share and
could have a significant impact on earnings per share on a GAAP
basis: gains or losses on the sale of businesses or other assets,
restructuring and other costs, asset impairment charges,
asbestos-related charges, losses from early extinguishment of debt,
pension settlement and curtailment charges, the tax and
noncontrolling interest impact of the items above, and the impact
of tax law changes or other tax matters. We have not provided
a reconciliation of the range of anticipated growth of projected
adjusted EBITDA to the most comparable GAAP measures due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliation, including restructuring
and other charges which are event-driven.
Conference Call
The Company will hold a conference
call tomorrow, July 25, 2023 at
9:00 a.m. (EDT) to discuss this news
release. Forward-looking and other material information may
be discussed on the conference call. The dial-in numbers for
the conference call are 630-395-0194 or toll-free 888-324-8108 and
the access password is "packaging." A live webcast of the
call will be made available to the public on the internet at the
Company's website, www.crowncork.com. A replay of the
conference call will be available for a one-week period ending at
midnight on August 1, 2023. The
telephone numbers for the replay are 203-369-3350 or toll free
800-819-5739.
Cautionary Note Regarding Forward-Looking
Statements
Except for historical information, all other
information in this press release consists of forward-looking
statements. These forward-looking statements involve a number
of risks, uncertainties and other factors, including the Company's
ability to continue to operate its plants, distribute its products,
and maintain its supply chain; the future impact of currency
translation; the continuation of performance and market trends in
2023, including consumer preference for beverage cans and
increasing global beverage can demand; the future impact of
inflation, including the potential for higher interest rates and
energy prices and the Company's ability to recover raw material and
other inflationary costs; future demand for food cans; the
Company's ability to successfully complete its previously announced
capacity expansion projects and begin production within expected
timelines; and the impact of overhead reduction efforts in the
Transit Packaging business, that may cause actual results to be
materially different from those expressed or implied in the
forward-looking statements. Important factors that could
cause the statements made in this press release or the actual
results of operations or financial condition of the Company to
differ are discussed under the caption "Forward Looking Statements"
in the Company's Form 10-K Annual Report for the year ended
December 31, 2022 and in subsequent
filings made prior to or after the date hereof. The Company
does not intend to review or revise any particular forward-looking
statement in light of future events.
Crown Holdings, Inc., through its subsidiaries, is a worldwide
leader in the design, manufacture and sale of packaging products
for consumer goods and industrial products. World
headquarters are located in Tampa,
Florida.
For more information, contact:
Kevin C. Clothier, Senior Vice
President and Chief Financial Officer, (215) 698-5281
Thomas T. Fischer, Vice President,
Investor Relations and Corporate Affairs, (215) 552-3720
Unaudited Consolidated Statements of Operations, Balance
Sheets, Statements of Cash Flows, Segment Information and
Supplemental Data follow.
Consolidated
Statements of Operations (Unaudited)
(in millions, except
share and per share data)
|
|
|
Three Months
Ended June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales
|
$
3,109
|
|
$ 3,510
|
|
$
6,083
|
|
$
6,672
|
Cost
of products sold
|
2,463
|
|
2,861
|
|
4,874
|
|
5,408
|
Depreciation and amortization
|
125
|
|
116
|
|
248
|
|
231
|
Selling and administrative expense
|
148
|
|
140
|
|
308
|
|
297
|
Restructuring and other
|
6
|
|
(73)
|
|
17
|
|
(74)
|
Income from
operations (1)
|
367
|
|
466
|
|
636
|
|
810
|
Other pension and postretirement
|
16
|
|
(4)
|
|
27
|
|
(8)
|
Foreign exchange
|
14
|
|
7
|
|
18
|
|
(3)
|
Earnings before
interest and taxes
|
337
|
|
463
|
|
591
|
|
821
|
Interest expense
|
110
|
|
64
|
|
212
|
|
118
|
Interest income
|
(12)
|
|
(3)
|
|
(21)
|
|
(6)
|
Income from operations before income
taxes
|
239
|
|
402
|
|
400
|
|
709
|
Provision for income taxes
|
59
|
|
85
|
|
101
|
|
163
|
Equity earnings
|
7
|
|
12
|
|
10
|
|
29
|
Net
income
|
187
|
|
329
|
|
309
|
|
575
|
Net
income attributable to noncontrolling interests
|
30
|
|
34
|
|
50
|
|
64
|
Net income
attributable to Crown Holdings
|
$
157
|
|
$
295
|
|
$
259
|
|
$ 511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Crown Holdings
common
shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
1.31
|
|
$ 2.44
|
|
$
2.17
|
|
$
4.18
|
Diluted
|
$
1.31
|
|
$ 2.43
|
|
$
2.16
|
|
$
4.15
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
119,385,138
|
|
120,980,821
|
|
119,312,034
|
|
122,305,457
|
Diluted
|
119,641,646
|
|
121,622,534
|
|
119,620,100
|
|
122,991,134
|
Actual common shares
outstanding at quarter end
|
120,102,654
|
|
121,166,297
|
|
120,102,654
|
|
121,166,297
|
|
|
|
|
|
|
|
|
(1)
Reconciliation from income from operations to segment income
follows.
|
|
|
|
|
|
|
Consolidated
Supplemental Financial Data (Unaudited)
(in
millions)
|
|
|
|
|
|
Reconciliation from
Income from Operations to Segment Income
The Company views
segment income, as defined below, as a principal measure of
performance of its operations and for the
allocation of resources. Segment income is defined by the
Company as income from operations adjusted to exclude
intangibles amortization charges and provisions for restructuring
and other.
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Income from
operations
|
$
|
367
|
|
$
|
466
|
|
$
|
636
|
|
$
|
810
|
|
|
Intangibles
amortization
|
|
41
|
|
|
39
|
|
|
81
|
|
|
79
|
|
|
Restructuring and
other
|
|
6
|
|
|
(73)
|
|
|
17
|
|
|
(74)
|
|
|
Segment income
|
$
|
414
|
|
$
|
432
|
|
$
|
734
|
|
$
|
815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
Net
Sales
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Americas
Beverage
|
|
$
|
1,292
|
|
$
|
1,378
|
|
$
|
2,553
|
|
$
|
2,604
|
|
European
Beverage
|
|
|
532
|
|
|
599
|
|
|
1,011
|
|
|
1,109
|
|
Asia Pacific
|
|
|
332
|
|
|
432
|
|
|
670
|
|
|
845
|
|
Transit
Packaging
|
|
|
597
|
|
|
691
|
|
|
1,161
|
|
|
1,348
|
|
Other
(1)
|
|
|
356
|
|
|
410
|
|
|
688
|
|
|
766
|
|
Total net
sales
|
|
$
|
3,109
|
|
$
|
3,510
|
|
$
|
6,083
|
|
$
|
6,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Beverage
|
|
$
|
211
|
|
$
|
216
|
|
$
|
389
|
|
$
|
380
|
|
European
Beverage
|
|
|
74
|
|
|
56
|
|
|
119
|
|
|
109
|
|
Asia Pacific
|
|
|
38
|
|
|
55
|
|
|
74
|
|
|
108
|
|
Transit
Packaging
|
|
|
89
|
|
|
74
|
|
|
167
|
|
|
135
|
|
Other
(1)
|
|
|
36
|
|
|
62
|
|
|
63
|
|
|
156
|
|
Corporate and other
unallocated items
|
|
|
(34)
|
|
|
(31)
|
|
|
(78)
|
|
|
(73)
|
|
Total segment
income
|
|
$
|
414
|
|
$
|
432
|
|
$
|
734
|
|
$
|
815
|
|
(1)
|
Includes the Company's
food can, aerosol can and closures businesses in North America, and
beverage tooling and
equipment operations in the U.S. and United Kingdom.
|
Consolidated
Supplemental Data (Unaudited)
(in millions, except
per share data)
|
|
Reconciliation from
Net Income and Diluted Earnings Per Share to Adjusted Net Income
and Adjusted Diluted
Earnings Per Share
The following table
reconciles reported net income and diluted earnings per share
attributable to the Company to adjusted
net income and adjusted diluted earnings per share, as used
elsewhere in this release.
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income/diluted
earnings per share
attributable
to Crown Holdings, as reported
|
|
$157
|
|
$1.31
|
|
$295
|
|
$2.43
|
|
$259
|
|
$2.16
|
|
$511
|
|
$4.15
|
Intangibles amortization (1)
|
|
41
|
|
0.34
|
|
39
|
|
0.32
|
|
81
|
|
0.68
|
|
79
|
|
0.64
|
Restructuring and other (2)
|
|
6
|
|
0.05
|
|
(73)
|
|
(0.60)
|
|
17
|
|
0.14
|
|
(74)
|
|
(0.60)
|
Other pension and postretirement (3)
|
|
6
|
|
0.05
|
|
|
|
|
|
6
|
|
0.05
|
|
|
|
|
Income taxes (4)
|
|
(11)
|
|
(0.09)
|
|
(8)
|
|
(0.07)
|
|
(23)
|
|
(0.19)
|
|
(15)
|
|
(0.12)
|
Equity earnings (5)
|
|
2
|
|
0.02
|
|
2
|
|
0.02
|
|
5
|
|
0.04
|
|
4
|
|
0.04
|
Adjusted net
income/diluted earnings per share
|
|
$201
|
|
$1.68
|
|
$255
|
|
$2.10
|
|
$345
|
|
$2.88
|
|
$505
|
|
$4.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate as
reported
|
|
24.7 %
|
|
|
|
21.1 %
|
|
|
|
25.3 %
|
|
|
|
23.0 %
|
|
|
Adjusted effective tax
rate
|
|
24.0 %
|
|
|
|
25.3 %
|
|
|
|
24.6 %
|
|
|
|
24.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, adjusted diluted earnings per share and the
adjusted effective tax rate are non-GAAP measures and are not meant
to be considered in isolation or as a substitute for net income,
diluted earnings per share and effective tax rates determined in
accordance with U.S. generally accepted accounting
principles. The Company believes these non-GAAP measures
provide useful information to evaluate the performance of the
Company's ongoing business.
(1)
|
In the second quarter
and first six months of 2023, the Company recorded charges of $41
million ($31 million net of
tax) and $81 million ($61 million net of tax) for intangibles
amortization arising from prior acquisitions. In the
second
quarter and first six months of 2022, the Company recorded charges
of $39 million ($30 million net of tax) and $79
million ($61 million net of tax) for intangibles amortization
arising from prior acquisitions.
|
|
|
(2)
|
In the second quarter
and first six months of 2023, the Company recorded net
restructuring and other charges of $6
million ($6 million net of tax) and $17 million ($15 million net of
tax) primarily related to business reorganization
activities in Europe. In the second quarter and first six
months of 2022, the Company recorded net restructuring and
other gains of $73 million ($72 million net of tax) and $74 million
($74 million net of tax) primarily related to a gain of
$113 million ($102 million net of tax) for the sale of the Transit
Packaging segment's Kiwiplan business, partially
offset by a restructuring charge of $29 million ($22 million net of
tax) related to an overhead cost reduction program
in the Transit Packaging segment.
|
|
|
(3)
|
In the second quarter
of 2023, the Company recorded a one-time termination charge of $6
million ($5 million net of
tax) related to business reorganization activities in
Europe.
|
|
|
(4)
|
The Company recorded
income tax benefits of $11 million and $23 million in the second
quarter and first six months
of 2023 and $8 million and $15 million in the second quarter and
first six months of 2022, primarily related to the
items described above.
|
|
|
(5)
|
In the second quarters
and first six months of 2023 and 2022, the Company recorded its
proportional share of intangible
amortization, net of tax, recorded by its European tinplate equity
method investment, in the line Equity earnings.
|
Consolidated Balance Sheets (Condensed &
Unaudited)
(in
millions)
|
June 30,
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
547
|
|
|
$
|
438
|
|
Receivables, net
|
|
|
1,897
|
|
|
|
2,151
|
|
Inventories
|
|
|
1,908
|
|
|
|
2,197
|
|
Prepaid expenses and other current assets
|
|
|
260
|
|
|
|
315
|
|
Total current assets
|
|
|
4,612
|
|
|
|
5,101
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible
assets, net
|
|
|
4,360
|
|
|
|
4,349
|
|
Property, plant and
equipment, net
|
|
|
4,890
|
|
|
|
4,133
|
|
Other non-current
assets
|
|
|
727
|
|
|
|
816
|
|
Total assets
|
|
$
|
14,589
|
|
|
$
|
14,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
106
|
|
|
$
|
76
|
|
Current maturities of long-term debt
|
|
|
140
|
|
|
|
1,088
|
|
Accounts payable and accrued liabilities
|
|
|
3,328
|
|
|
|
4,192
|
|
Total current liabilities
|
|
|
3,574
|
|
|
|
5,356
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
excluding current maturities
|
|
|
6,986
|
|
|
|
5,466
|
|
Other non-current
liabilities
|
|
|
1,314
|
|
|
|
1,387
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
480
|
|
|
|
451
|
|
Crown Holdings
shareholders' equity
|
|
|
2,235
|
|
|
|
1,739
|
|
Total equity
|
|
|
2,715
|
|
|
|
2,190
|
|
Total liabilities and equity
|
|
$
|
14,589
|
|
|
$
|
14,399
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows (Condensed & Unaudited)
(in
millions)
|
Six months ended
June 30,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
|
309
|
|
|
$
|
575
|
|
Depreciation and
amortization
|
|
|
|
248
|
|
|
|
231
|
|
Restructuring and
other
|
|
|
|
17
|
|
|
|
(74)
|
|
Pension
expense
|
|
|
|
35
|
|
|
|
16
|
|
Pension
contributions
|
|
|
|
(4)
|
|
|
|
33
|
|
Stock-based
compensation
|
|
|
|
17
|
|
|
|
16
|
|
Working capital
changes and other (2)
|
|
|
|
(329)
|
|
|
|
(601)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
|
|
293
|
|
|
|
196
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
(454)
|
|
|
|
(310)
|
|
Acquisitions and divestitures
|
|
|
|
|
|
|
|
151
|
|
Equity method investment distribution
(2)
|
|
|
|
56
|
|
|
|
|
|
Other
|
|
|
|
20
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
|
(378)
|
|
|
|
(130)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Net change in
debt
|
|
|
|
187
|
|
|
|
650
|
|
Dividends paid to shareholders
|
|
|
|
(57)
|
|
|
|
(53)
|
|
Common stock
repurchased
|
|
|
|
(11)
|
|
|
|
(600)
|
|
Dividends paid to noncontrolling interests
|
|
|
|
(11)
|
|
|
|
(24)
|
|
Other, net
|
|
|
|
(7)
|
|
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by(used for) financing
activities
|
|
|
|
101
|
|
|
|
(38)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
|
(12)
|
|
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
|
|
4
|
|
|
|
(67)
|
|
Cash and cash
equivalents at January 1
|
|
|
|
639
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at June 30
(1)
|
|
|
$
|
643
|
|
|
$
|
526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Cash and cash
equivalents include $96 million and $88 million of restricted cash
at June 30, 2023 and 2022.
|
(2)
|
Working capital changes
and other includes $27 million of the total $83 million
distribution received from our
European tinplate equity method investment in 2023.
|
Adjusted free cash flow is defined by the Company as net cash
from operating activities less capital expenditures and certain
other items. A reconciliation of net cash from operating
activities to adjusted free cash flow for the three and six months
ended June 30, 2023 and 2022
follows.
|
Three Months
Ended
June
30,
|
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net cash provided by
operating activities
|
$
528
|
|
|
$
497
|
|
|
$
293
|
|
|
$
196
|
U.K. pension settlement
(3)
|
|
|
|
(17)
|
|
|
(1)
|
|
|
(41)
|
Interest included in
investing activities (4)
|
|
|
|
|
|
|
13
|
|
|
13
|
Capital
expenditures
|
(221)
|
|
|
(193)
|
|
|
(454)
|
|
|
(310)
|
Insurance receivable
(5)
|
|
|
|
|
|
|
(23)
|
|
|
|
Adjusted free cash
flow
|
$
307
|
|
|
$
287
|
|
|
$
(172)
|
|
|
$
(142)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
In September 2021, the
Company made a contribution of £196 million to its U.K. defined
pension plan in advance of a full
settlement of the plan's obligations in November 2021. The
Company has been repaid £103 million of the contribution as
of June 30, 2023 and expects to receive another £24 million as the
plan sells its remaining illiquid assets.
|
|
|
(4)
|
Interest benefit of
cross currency swaps included in investing activities.
|
|
|
(5)
|
Insurance proceeds
received in the first six months of 2023 related to the December
2021 tornado at the Bowling Green
plant.
|
Consolidated
Supplemental Data (Unaudited)
(in
millions)
|
|
|
|
Impact of Foreign
Currency Translation – Favorable/(Unfavorable)
(1)
|
|
|
|
|
Three Months
Ended
June 30,
2023
|
|
|
Six Months
Ended
June 30,
2023
|
|
|
Net
Sales
|
|
Segment
Income
|
|
|
Net
Sales
|
|
|
Segment
Income
|
|
|
Americas
Beverage
|
$
|
14
|
|
$
|
4
|
|
|
$
|
24
|
|
|
$
|
3
|
|
|
European
Beverage
|
3
|
|
|
|
|
(18)
|
|
|
(1)
|
|
|
Asia Pacific
|
(3)
|
|
|
|
|
(9)
|
|
|
|
|
|
Transit
Packaging
|
(3)
|
|
|
|
|
(20)
|
|
|
(2)
|
|
|
Corporate and
other
|
|
|
(1)
|
|
|
(2)
|
|
|
(2)
|
|
|
|
$
|
11
|
|
$
|
3
|
|
|
$
|
(25)
|
|
|
$
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The impact of foreign
currency translation represents the difference between actual
current year U.S. dollar results and
pro forma amounts assuming constant foreign currency exchange rates
for translation in both periods. In order to
compute the difference, the Company compares actual U.S. dollar
results to an amount calculated by dividing the current
U.S. dollar results by current year average foreign exchange rates
and then multiplying those amounts by the applicable
prior year average foreign exchange rates.
|
Reconciliation of
Adjusted EBITDA and Adjusted Net Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
June
YTD
|
|
June YTD
2022
|
|
Full Year
2022
|
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
|
636
|
|
$
|
810
|
|
$
|
1,336
|
|
$
|
1,162
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Intangibles amortization
|
|
81
|
|
79
|
|
159
|
|
161
|
|
Restructuring and other
|
|
17
|
|
(74)
|
|
(52)
|
|
39
|
|
Segment
income
|
|
734
|
|
815
|
|
1,443
|
|
1,362
|
|
Depreciation
|
|
167
|
|
152
|
|
301
|
|
316
|
|
Adjusted
EBITDA
|
|
$
|
901
|
|
$
|
967
|
|
$
|
1,744
|
|
$
|
1,678
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
|
$
|
6,977
|
|
$
|
7,232
|
|
Less cash
|
|
|
|
|
|
550
|
|
547
|
|
Net
debt
|
|
|
|
|
|
$
|
6,427
|
|
$
|
6,685
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
leverage ratio
|
|
|
|
|
|
3.69x
|
|
3.98x
|
|
View original
content:https://www.prnewswire.com/news-releases/crown-holdings-inc-reports-second-quarter-2023-results-301884348.html
SOURCE Crown Holdings, Inc.