TAMPA,
Fla., Oct. 23, 2023 /PRNewswire/ -- Crown
Holdings, Inc. (NYSE: CCK) today announced its financial results
for the third quarter ended September 30,
2023.
Net sales in the third quarter were $3,069 million compared to $3,259 million in the third quarter of 2022
reflecting higher beverage can volumes in North America and favorable foreign currency
translation of $60 million, offset by
lower volumes across most other businesses and the pass through of
$187 million in lower material
costs.
Income from operations was $374
million in the third quarter compared to $297 million in the third quarter of 2022.
Segment income in the third quarter of 2023 was $430 million compared to $336 million in the prior year third quarter
reflecting the benefits from higher beverage can volumes in
North America, the contractual
recovery of prior years' inflationary cost increases in
Europe and the successful
implementation of cost reduction programs in Transit Packaging.
Commenting on the quarter, Timothy J.
Donahue, Chairman, President and Chief Executive Officer,
stated, "Operating results for the third quarter were solid, and
the Company performed in line with expectations despite the
cumulative effects of persistent inflation and challenging
macroeconomic conditions in certain markets, such as Asia, which continue to adversely impact
volumes. Beverage can volumes in North America expanded by 13% and the can
continues to be the preferred choice by both customers and
consumers alike for new beverage product introductions.
"The benefits of the overhead cost reduction program were
clearly visible in strong Transit Packaging results for the
quarter, more than offsetting generally sluggish volumes resulting
from lackluster production in several industrial markets.
Actions taken in 2022 to negotiate more comprehensive raw material
and other inflationary pass-through provisions resulted in improved
income performance in the European Beverage division.
Beverage can volumes in Asia
Pacific and aerosol can shipments in North America continued to be weak during the
quarter.
"Looking forward, we remain focused on customer satisfaction and
executing that which is under our control. We have adjusted
production schedules to reduce inventory levels across aerosols,
Asia and Transit in response to
current demand. Net leverage at 3.5 times is one-half turn
lower than only three months ago and we remain on pace to generate
approximately $500 million in free
cash flow. We anticipate that capital expenditures will be
significantly reduced to approximately $500
million in each 2024 and 2025, and the Company expects to
use the increased cash flow to pay down debt and return capital to
shareholders."
Interest expense was $111 million
in the third quarter of 2023 compared to $76
million in the third quarter of 2022 reflecting higher
interest rates.
Net income attributable to Crown Holdings in the third quarter
was $159 million compared to
$127 million in the third quarter of
2022. Reported diluted earnings per share were $1.33 in the third quarter of 2023 compared to
$1.06 in 2022 and adjusted diluted
earnings per share were $1.73
compared to $1.46 in 2022.
Nine Month Results
Net sales for the first nine months of 2023 were $9,152 million compared to $9,931 million in the first nine months of 2022,
primarily due to 6% higher beverage can volumes in North America and favorable foreign currency
translation of $35 million, offset by
the pass through of $575 million in
lower material costs and lower overall net volumes.
Income from operations was $1,010
million in the first nine months of 2023 compared to
$1,107 million in the first nine
months 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 nine months of 2023 was $1,164
million versus $1,151 million
in the prior year period, reflecting benefits from higher beverage
can volumes in Americas Beverage, the contractual recovery of prior
year's inflationary cost increases in European Beverage and cost
reduction initiatives in Transit Packaging, partially offset by
$60 million of year over year
inventory impact of steel repricing in the Other segment and lower
volumes in most other businesses, notably in aerosols in
North America and beverage cans in
Asia.
Interest expense was $323 million
for the first nine months of 2023 compared to $194 million in 2022 primarily due to higher
interest rates.
Net income attributable to Crown Holdings in the first nine
months of 2023 was $418 million
compared to $638 million in the first
nine months of 2022. Reported diluted earnings per share were
$3.49 compared to $5.23 in 2022 and adjusted diluted earnings per
share were $4.61 compared to
$5.58 in 2022.
Mr. Donahue further commented, "The Company completed the
acquisition of Helvetia Packaging in early October and we welcome
our new associates to the Crown family."
Outlook
Fourth quarter adjusted diluted earnings per share are expected
to be in the range of $1.40 to
$1.50 and full year 2023 adjusted
diluted earnings per share in the range of $6.00 to $6.10
reflecting full-year improved operating results in Americas and
European Beverage and Transit Packaging, offset by continued
weakness in Asia and the
North America aerosols business
which are traditionally more economically sensitive. Adjusted
free cash flow is expected to be approximately $500 million after approximately $900 million of capital expenditures.
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 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.
Conference Call
The Company will hold a conference call tomorrow, October 24, 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
November 1, 2023. The telephone
numbers for the replay are 203-369-0180 or toll free
866-360-8712.
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
September 30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales
|
$
3,069
|
|
$ 3,259
|
|
$
9,152
|
|
$
9,931
|
Cost
of products sold
|
2,427
|
|
2,726
|
|
7,301
|
|
8,134
|
Depreciation and amortization
|
124
|
|
115
|
|
372
|
|
346
|
Selling and administrative expense
|
129
|
|
122
|
|
437
|
|
419
|
Restructuring and other
|
15
|
|
(1)
|
|
32
|
|
(75)
|
Income from
operations (1)
|
374
|
|
297
|
|
1,010
|
|
1,107
|
Loss
on debt extinguishment
|
|
|
11
|
|
|
|
11
|
Other pension and postretirement
|
11
|
|
(5)
|
|
38
|
|
(13)
|
Foreign exchange
|
13
|
|
15
|
|
31
|
|
12
|
Earnings before
interest and taxes
|
350
|
|
276
|
|
941
|
|
1,097
|
Interest expense
|
111
|
|
76
|
|
323
|
|
194
|
Interest income
|
(13)
|
|
(3)
|
|
(34)
|
|
(9)
|
Income from operations before income
taxes
|
252
|
|
203
|
|
652
|
|
912
|
Provision for income taxes
|
62
|
|
55
|
|
163
|
|
218
|
Equity earnings
|
10
|
|
10
|
|
20
|
|
39
|
Net
income
|
200
|
|
158
|
|
509
|
|
733
|
Net
income attributable to noncontrolling interests
|
41
|
|
31
|
|
91
|
|
95
|
Net income
attributable to Crown Holdings
|
$
159
|
|
$
127
|
|
$
418
|
|
$ 638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Crown Holdings
common
shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
1.33
|
|
$
1.06
|
|
$
3.50
|
|
$ 5.26
|
Diluted
|
$
1.33
|
|
$
1.06
|
|
$
3.49
|
|
$ 5.23
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
119,495,455
|
|
119,698,219
|
|
119,375,527
|
|
121,426,827
|
Diluted
|
119,740,429
|
|
120,198,847
|
|
119,658,885
|
|
122,053,031
|
Actual common shares
outstanding at quarter end
|
120,646,389
|
|
119,946,169
|
|
120,646,389
|
|
119,946,169
|
|
|
|
|
|
|
|
|
(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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Income from
operations
|
$
|
374
|
|
$
|
297
|
|
$
|
1,010
|
|
$
|
1,107
|
|
Intangibles
amortization
|
|
41
|
|
|
40
|
|
|
122
|
|
|
119
|
|
Restructuring and
other
|
|
15
|
|
|
(1)
|
|
|
32
|
|
|
(75)
|
|
Segment income
|
$
|
430
|
|
$
|
336
|
|
$
|
1,164
|
|
$
|
1,151
|
|
|
|
|
|
Segment
Information
|
|
|
|
Net
Sales
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Americas
Beverage
|
$
|
1,295
|
|
$
|
1,312
|
|
$
|
3,848
|
|
$
|
3,916
|
|
European
Beverage
|
|
536
|
|
|
552
|
|
|
1,547
|
|
|
1,661
|
|
Asia Pacific
|
|
307
|
|
|
375
|
|
|
977
|
|
|
1,220
|
|
Transit
Packaging
|
|
554
|
|
|
609
|
|
|
1,715
|
|
|
1,957
|
|
Other
(1)
|
|
377
|
|
|
411
|
|
|
1,065
|
|
|
1,177
|
|
Total net
sales
|
$
|
3,069
|
|
$
|
3,259
|
|
$
|
9,152
|
|
$
|
9,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Beverage
|
$
|
232
|
|
$
|
185
|
|
$
|
621
|
|
$
|
565
|
|
European
Beverage
|
|
80
|
|
|
20
|
|
|
199
|
|
|
129
|
|
Asia Pacific
|
|
33
|
|
|
35
|
|
|
107
|
|
|
143
|
|
Transit
Packaging
|
|
89
|
|
|
75
|
|
|
256
|
|
|
210
|
|
Other
(1)
|
|
37
|
|
|
50
|
|
|
100
|
|
|
206
|
|
Corporate and other
unallocated items
|
|
(41)
|
|
|
(29)
|
|
|
(119)
|
|
|
(102)
|
|
Total segment
income
|
$
|
430
|
|
$
|
336
|
|
$
|
1,164
|
|
$
|
1,151
|
|
|
|
(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
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income/diluted
earnings per share
attributable
to Crown Holdings, as reported
|
|
$159
|
|
$1.33
|
|
$127
|
|
$1.06
|
|
$418
|
|
$3.49
|
|
$638
|
|
$5.23
|
Intangibles amortization (1)
|
|
41
|
|
0.34
|
|
40
|
|
0.33
|
|
122
|
|
1.02
|
|
119
|
|
0.97
|
Restructuring and other (2)
|
|
15
|
|
0.12
|
|
(1)
|
|
(0.01)
|
|
32
|
|
0.27
|
|
(75)
|
|
(0.61)
|
Loss
on debt extinguishment (3)
|
|
|
|
|
|
11
|
|
0.09
|
|
|
|
|
|
11
|
|
0.09
|
Other pension and postretirement (4)
|
|
|
|
|
|
1
|
|
0.01
|
|
6
|
|
0.05
|
|
1
|
|
0.01
|
Income taxes (5)
|
|
(10)
|
|
(0.08)
|
|
(5)
|
|
(0.04)
|
|
(33)
|
|
(0.28)
|
|
(20)
|
|
(0.16)
|
Equity earnings (6)
|
|
2
|
|
0.02
|
|
2
|
|
0.02
|
|
7
|
|
0.06
|
|
6
|
|
0.05
|
Adjusted net
income/diluted earnings per share
|
|
$207
|
|
$1.73
|
|
$175
|
|
$1.46
|
|
$552
|
|
$4.61
|
|
$680
|
|
$5.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate as
reported
|
|
24.6 %
|
|
|
|
27.1 %
|
|
|
|
25.0 %
|
|
|
|
23.9 %
|
|
|
Adjusted effective tax
rate
|
|
23.4 %
|
|
|
|
23.6 %
|
|
|
|
24.1 %
|
|
|
|
24.6 %
|
|
|
|
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 third quarter
and first nine months of 2023, the Company recorded charges of $41
million ($31 million net of tax) and $122 million ($92 million net
of tax) for intangibles amortization arising from prior
acquisitions. In the third quarter and first nine months of
2022, the Company recorded charges of $40 million ($31 million net
of tax) and $119 million ($92 million net of tax) for intangibles
amortization arising from prior acquisitions.
|
|
|
(2)
|
In the third quarter
and first nine months of 2023, the Company recorded net
restructuring and other charges of $15 million ($15 million net of
tax) and $32 million ($30 million net of tax). In the third
quarter and first nine months of 2022, the Company recorded net
restructuring and other gains of $1 million ($1 million net of tax)
and $75 million ($73 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 third quarter
and first nine months of 2022, the Company recorded loss on debt
extinguishment of $11 million ($10 million net of tax) for the
early redemption of senior notes due 2023 and the refinancing of
its revolving credit facility and term loans.
|
|
|
(4)
|
In the first nine
months 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.
|
|
|
(5)
|
The Company recorded
income tax benefits of $10 million and $33 million in the third
quarter and first nine months of 2023 and $5 million and $20
million in the third quarter and first nine months of 2022,
primarily related to the items described above.
|
|
|
(6)
|
In the third quarters
and first nine months of 2023 and 2022, the Company recorded its
proportional share of intangible amortization and restructuring
charges, net of tax, recorded by its European tinplate equity
method investment, in the line Equity earnings.
|
Consolidated Balance Sheets
(Condensed & Unaudited)
(in
millions)
|
September 30,
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
807
|
|
|
$
|
368
|
|
Receivables, net
|
|
|
1,751
|
|
|
|
2,124
|
|
Inventories
|
|
|
1,664
|
|
|
|
2,184
|
|
Prepaid expenses and other current assets
|
|
|
230
|
|
|
|
291
|
|
Total current assets
|
|
|
4,452
|
|
|
|
4,967
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible
assets, net
|
|
|
4,242
|
|
|
|
4,186
|
|
Property, plant and
equipment, net
|
|
|
4,876
|
|
|
|
4,265
|
|
Other non-current
assets
|
|
|
751
|
|
|
|
806
|
|
Total assets
|
|
$
|
14,321
|
|
|
$
|
14,224
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
51
|
|
|
$
|
83
|
|
Current maturities of long-term debt
|
|
|
774
|
|
|
|
94
|
|
Accounts
payable and accrued liabilities
|
|
|
3,132
|
|
|
|
3,833
|
|
Total current liabilities
|
|
|
3,957
|
|
|
|
4,010
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
excluding current maturities
|
|
|
6,240
|
|
|
|
6,709
|
|
Other non-current
liabilities
|
|
|
1,296
|
|
|
|
1,370
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
487
|
|
|
|
469
|
|
Crown Holdings
shareholders' equity
|
|
|
2,341
|
|
|
|
1,666
|
|
Total equity
|
|
|
2,828
|
|
|
|
2,135
|
|
Total liabilities and equity
|
|
$
|
14,321
|
|
|
$
|
14,224
|
|
|
|
|
|
Consolidated Statements of Cash Flows (Condensed
& Unaudited)
(in
millions)
|
Nine months ended September 30,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
|
509
|
|
|
$
|
733
|
|
Depreciation and amortization
|
|
|
|
372
|
|
|
|
346
|
|
Restructuring and other
|
|
|
|
32
|
|
|
|
(75)
|
|
Pension expense
|
|
|
|
50
|
|
|
|
21
|
|
Pension contributions
|
|
|
|
(10)
|
|
|
|
55
|
|
Stock-based compensation
|
|
|
|
27
|
|
|
|
23
|
|
Working capital changes and other (2)
|
|
|
|
(148)
|
|
|
|
(969)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
|
|
832
|
|
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
(614)
|
|
|
|
(607)
|
|
Acquisition and divestitures, net
|
|
|
|
|
|
|
|
151
|
|
Equity method investment distribution
(2)
|
|
|
|
56
|
|
|
|
7
|
|
Other
|
|
|
|
38
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
|
(520)
|
|
|
|
(412)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
|
|
Net change in
debt
|
|
|
|
116
|
|
|
|
1,106
|
|
Dividends paid to shareholders
|
|
|
|
(86)
|
|
|
|
(80)
|
|
Common stock
repurchased
|
|
|
|
(12)
|
|
|
|
(722)
|
|
Dividends paid to noncontrolling interests
|
|
|
|
(44)
|
|
|
|
(34)
|
|
Other, net
|
|
|
|
(9)
|
|
|
|
(38)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by(used for) financing
activities
|
|
|
|
(35)
|
|
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
|
(14)
|
|
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
|
|
263
|
|
|
|
(141)
|
|
Cash and cash
equivalents at January 1
|
|
|
|
639
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at
September 30 (1)
|
|
|
$
|
902
|
|
|
$
|
452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Cash and cash
equivalents include $95 million and $84 million of restricted cash
at September 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 nine months ended September 30,
2023 and 2022 follows.
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net cash provided by operating
activities
|
$
|
539
|
|
|
$
(62)
|
|
|
$
832
|
|
|
$
134
|
U.K. pension settlement
(3)
|
|
|
|
(28)
|
|
|
(1)
|
|
|
(69)
|
Interest included in
investing activities (4)
|
12
|
|
|
13
|
|
|
25
|
|
|
26
|
Capital
expenditures
|
(160)
|
|
|
(297)
|
|
|
(614)
|
|
|
(607)
|
Insurance receivable
(5)
|
|
|
|
15
|
|
|
(23)
|
|
|
40
|
Adjusted free cash flow
|
$
391
|
|
|
$
(359)
|
|
|
$
219
|
|
|
$
(476)
|
|
|
|
|
|
|
|
|
|
|
(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 September 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 nine 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
September 30, 2023
|
|
|
Nine Months Ended
September 30, 2023
|
|
Net Sales
|
|
Segment
Income
|
|
|
Net Sales
|
|
|
Segment
Income
|
|
Americas
Beverage
|
$
|
17
|
|
$
|
1
|
|
|
$
|
41
|
|
|
$
|
4
|
|
European
Beverage
|
27
|
|
3
|
|
|
9
|
|
|
2
|
|
Asia Pacific
|
|
|
|
|
|
(9)
|
|
|
|
|
Transit
Packaging
|
13
|
|
4
|
|
|
(7)
|
|
|
2
|
|
Corporate and
other
|
3
|
|
(1)
|
|
|
1
|
|
|
(3)
|
|
|
$
|
60
|
|
$
|
7
|
|
|
$
|
35
|
|
|
$
|
5
|
|
|
|
(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
|
|
|
|
|
|
September
|
|
September
|
|
|
|
Twelve Months Ended
|
|
|
|
YTD 2023
|
|
YTD 2022
|
|
Full Year 2022
|
|
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
1,010
|
|
$
|
1,107
|
|
$
|
1,336
|
|
$
|
1,239
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Intangibles amortization
|
|
122
|
|
119
|
|
159
|
|
162
|
|
Restructuring and other
|
|
32
|
|
(75)
|
|
(52)
|
|
55
|
|
Segment
income
|
|
1,164
|
|
1,151
|
|
1,443
|
|
1,456
|
|
Depreciation
|
|
250
|
|
227
|
|
301
|
|
324
|
|
Adjusted EBITDA
|
|
$
|
1,414
|
|
$
|
1,378
|
|
$
|
1,744
|
|
$
|
1,780
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
|
$
|
6,977
|
|
$
|
7,065
|
|
Less cash
|
|
|
|
|
|
550
|
|
807
|
|
Net debt
|
|
|
|
|
|
$
|
6,427
|
|
$
|
6,258
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net leverage ratio
|
|
|
|
|
|
3.7x
|
|
3.5x
|
|
View original
content:https://www.prnewswire.com/news-releases/crown-holdings-inc-reports-third-quarter-2023-results-301964858.html
SOURCE Crown Holdings, Inc.