Exhibit 99.1
| | | | |
Media Contact | | Investor Relations | | |
| Tucker McNeil | | Jason Thompson | | |
| tel: +1 804.444.6397 | | tel: +1 804.444.2556 | | |
| mediainquiries@mwv.com | | | | |
MWV Reports Strong Fourth Quarter and Full-Year Sales and Earnings Growth
Fourth Quarter and Full-Year 2014 Highlights:
| • | | Fourth quarter earnings from continuing operations were $0.31 per share; earnings ex-items were up 59% to $0.46 vs. $0.29 on the same basis in the prior year |
| • | | Full-year earnings from continuing operations were $1.53 per share; earnings ex-items were up 80% to $1.85 vs. $1.03 on the same basis in the prior year |
| • | | Fourth quarter and full-year sales both grew 5% from gains across targeted packaging and specialty chemicals markets |
| • | | Strong fourth quarter and full-year EBITDA growth driven by improvement across all packaging segments (see table below) |
| • | | Fourth quarter cash flow from continuing operations was $298 million |
| • | | Full-year cost savings were $85 million; total margin improvement program benefits expected to be $135 million through 2015 |
RICHMOND, Va., January 26, 2015—MeadWestvaco Corporation (NYSE:MWV), a global leader in packaging and packaging solutions, reported strong sales and EBITDA margin growth in the fourth quarter of 2014 (see table below). Sales increased from volume, pricing and share gains in targeted packaging and specialty chemicals end markets. Margin grew from strong operational and commercial performance, returns on major productivity investments and continued cost reductions. As a result, total company EBITDA ex-items increased 18% to $246 million or 17.9% of sales. Refer to the “Use of Non-GAAP Measures” section of this release for further information.
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($MM) | | Q4 2014
EBITDA | | | D vs.
prior
year | | | Full
Year
2014
EBITDA | | | D vs.
prior
year | | | Q4
2014
EBITDA
Margin | | | D vs.
prior
year | | | Full Year
2014
EBITDA
Margin | | | D vs.
prior
year | |
Food & Beverage | | $ | 126 | | | | +10 | % | | $ | 543 | | | | +19 | % | | | 16.5 | % | | | 110 bps | | | | 16.8 | % | | | 210 bps | |
Home, Health & Beauty | | $ | 29 | | | | +32 | % | | $ | 119 | | | | +32 | % | | | 15.2 | % | | | 310 bps | | | | 15.2 | % | | | 310 bps | |
Industrial | | $ | 37 | | | | +28 | % | | $ | 128 | | | | +22 | % | | | 26.6 | % | | | 670 bps | | | | 22.9 | % | | | 370 bps | |
Specialty Chemicals | | $ | 62 | | | | +2 | % | | $ | 275 | | | | +5 | % | | | 25.7 | % | | | (40) bps | | | | 26.4 | % | | | (30) bps | |
“MWV’s revenue and earnings growth this quarter was the result of momentum we generated throughout a very good year of performance in 2014,” said John A. Luke, Jr., chairman and chief executive officer, MWV. “Our strong packaging and specialty chemicals results reinforce the benefits of the market-focused strategies we have established in each business. We are confident our packaging and specialty chemicals businesses will continue to be successful and contribute to long-term shareholder value creation as new companies.”
Fourth Quarter and Full-year Comparison
Sales from continuing operations in the fourth quarter of 2014 were $1.37 billion compared to $1.31 billion in the fourth quarter of 2013. Income from continuing operations attributable to the company in the fourth quarter of 2014 was $53 million or $0.31 per share, compared to $209 million or $1.16 per share in the fourth quarter of 2013. Income from continuing operations attributable to the company excluding special items was $78 million or $0.46 per share in the fourth quarter of 2014, compared to $51 million or $0.29 per share in the fourth quarter of 2013.
Sales from continuing operations for full-year 2014 were $5.6 billion compared to $5.4 billion for full-year 2013. Income from continuing operations attributable to the company for full-year 2014 was $262 million or $1.53 per share compared to $320 million or $1.78 per share for full-year 2013. Income from continuing operations attributable to the company for full-year 2014 excluding special items was $317 million or $1.85 per share compared to $185 million or $1.03 per share for full-year 2013.
Refer to the “Use of Non-GAAP Measures” section of this release for further information.
Fourth Quarter Segment Results
Following is a summary of fourth quarter 2014 results by business segment. All comparisons of the results for the fourth quarter of 2014 are with the fourth quarter of 2013 on a continuing operations basis.
Food & Beverage
In the Food & Beverage segment, sales grew 2% to $765 million in the fourth quarter of 2014 compared to $747 million in the fourth quarter of 2013. EBITDA increased 10% to $126 million in the fourth quarter of 2014 compared to $115 million in the fourth quarter of 2013.
| | • | | Total revenue up 5% excluding unfavorable foreign currency exchange |
| | • | | 6% revenue growth in beverage led by gains in North America and Asia Pacific |
| | • | | 1% revenue growth in food led by gains in North American food service driven by foam cup and container replacement trends |
| | • | | 2% growth in premium paperboard (tobacco and commercial print) from share gains with key customers |
Home, Health & Beauty
In the Home, Health & Beauty segment, sales grew 5% to $191 million in the fourth quarter of 2014 compared to $182 million in the fourth quarter of 2013. EBITDA increased 32% to $29 million in the fourth quarter of 2014 compared to $22 million in the fourth quarter of 2013.
| | • | | Total revenue up 13% excluding European beauty and personal care folding carton exit and unfavorable foreign currency exchange |
| | • | | 10% revenue growth in dispensing from continued gains in higher-value fragrance pumps, home cleaning triggers and lawn care sprayers |
| | • | | Earnings more than tripled on price and mix improvement, better plant loadings and cost reductions |
| | • | | Continued profit improvement in secondary and adherence healthcare business |
2
Industrial
In the Industrial segment, sales declined 5% to $139 million in the fourth quarter of 2014 compared to $146 million in the fourth quarter of 2013. EBITDA increased 28% to $37 million in the fourth quarter of 2014 compared to $29 million in the fourth quarter of 2013.
| | • | | Total revenue up 5% excluding unfavorable foreign currency exchange |
| | • | | 27% EBITDA margin driven by Brazilian industrial business (33% EBITDA margin) despite general economic slowdown |
| | • | | Volume up 4% in Brazilian corrugated business; branded HyPerform® light-weight paper continues to gain share |
| | • | | Price and product mix improved 4% led by increases in Brazilian business to recover margins and offset inflation |
| | • | | 12% revenue growth in the Indian business on enhanced machine productivity and effective commercial engagement of brand owners |
Specialty Chemicals
In the Specialty Chemicals segment, sales grew 3% to $241 million in the fourth quarter of 2014 compared to $234 million in the fourth quarter of 2013. EBITDA increased 2% to $62 million in the fourth quarter of 2014 compared to $61 million in the fourth quarter of 2013.
| | • | | Total revenue up 4% excluding unfavorable foreign currency exchange |
| | • | | 15% revenue growth in carbon technologies led by automotive solutions |
| | • | | 18% revenue growth in asphalt from share gains with Evotherm® warm mix paving solution |
| | • | | 22% revenue growth in oilfield from share gains with higher value, high-performance formulations |
| | • | | Standard pine chemical revenue declined modestly |
| | • | | Positive productivity from continued improvement in plant utilization rates |
| | • | | Record sales and earnings for full-year 2014 |
Community Development and Land Management
Sales for the Community Development and Land Management segment were $45 million in the fourth quarter of 2014 compared to $6 million in the fourth quarter of 2013. Profit of $13 million in the fourth quarter of 2014 compared to a loss of $4 million in the fourth quarter of 2013. The improvement was driven by increased sales and earnings from accelerated progress in real estate development projects and the ongoing improvement in the Charleston, South Carolina region market fundamentals.
Rural, Recreational and Other sales:
| | • | | 13,900 acres for total proceeds of $35.4 million ($2,600 per acre) |
| | • | | 142-acre seed orchard for total proceeds of $1.8 million ($13,000 per acre) |
Nexton Real Estate sales:
| | • | | 14.7 acres sold for total proceeds of $2.9 million ($197,300 per acre) |
3
Other Items
In the fourth quarter of 2014, total pre-tax input costs of energy, raw materials and freight increased by $11 million compared to the fourth quarter of 2013 on a continuing operations basis.
In the fourth quarter of 2014, the pre-tax impact on earnings from foreign currency exchange was $13 million unfavorable compared to the fourth quarter of 2013 on a continuing operations basis.
Cash flow provided by operating activities from continuing operations was $298 million in the fourth quarter of 2014 compared to $194 million in the fourth quarter of 2013, reflecting improved earnings and working capital compared to 2013.
Capital spending declined to $132 million in the fourth quarter of 2014 compared to $169 million in the fourth quarter of 2013, reflecting lower overall investment primarily related to the Covington biomass boiler, which was completed in the fourth quarter of 2013.
On January 22, 2015, the company announced it has signed a definitive agreement to sell its European Tobacco Folding Carton business to AR Packing Group AB. Restructuring charges of approximately $30 million related to asset write-downs for this business were recorded in the fourth quarter of 2014.
About MWV
MeadWestvaco Corporation (NYSE:MWV) is a global packaging company providing innovative solutions to the world’s most admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The company also produces specialty chemicals for the automotive, energy and infrastructure industries, and maximizes the value of its development land holdings. MWV’s network of 125 facilities and 15,000 employees spans North America, South America, Europe and Asia. Learn more at www.mwv.com.
Forward-looking Statements
Certain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied by the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings from the company’s ongoing cost reduction initiatives; the ability of MeadWestvaco to close announced and pending transactions, including whether and when the spin-off of Specialty Chemicals will occur; competitive pricing for the company’s products; impact from unpredictable costs of energy and raw materials, including wood fiber and other input costs; fluctuations in demand and changes in production capacities; relative growth or decline in the United States and international economies; government policies and regulations, including, but not limited, to those affecting the environment, climate change, tax policies and the tobacco industry; the company’s continued ability to reach agreement with its unionized employees on collective bargaining agreements; the company’s ability to maximize the value of its development land holdings; adverse results in current or future litigation; currency movements; volatility or deterioration of the capital markets; and other risk factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the company’s reports filed with the SEC.
4
Consolidated Statements of Operations
In millions, except per share amounts (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
Net sales | | $ | 1,374 | | | $ | 1,310 | | | $ | 5,631 | | | $ | 5,389 | |
| | | | |
Cost of sales | | | 1,106 | | | | 1,066 | | | | 4,465 | | | | 4,429 | |
Selling, general and administrative expenses | | | 142 | | | | 154 | | | | 607 | | | | 638 | |
Interest expense | | | 53 | | | | 42 | | | | 213 | | | | 159 | |
Other income, net | | | (24 | ) | | | (35 | ) | | | (51 | ) | | | (59 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Income from continuing operations before income taxes | | | 97 | | | | 83 | | | | 397 | | | | 222 | |
Income tax provision (benefit) | | | 28 | | | | (127 | ) | | | 117 | | | | (97 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Income from continuing operations | | | 69 | | | | 210 | | | | 280 | | | | 319 | |
| | | | |
Income from discontinued operations, net of income taxes | | | — | | | | 468 | | | | 1 | | | | 519 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net income | | | 69 | | | | 678 | | | | 281 | | | | 838 | |
Less: Income (loss) attributable to non-controlling interests, net of taxes | | | 16 | | | | 1 | | | | 18 | | | | (1 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to the company | | $ | 53 | | | $ | 677 | | | $ | 263 | | | $ | 839 | |
| | | | | | | | | | | | | | | | |
| | | | |
Income from continuing operations attributable to the company | | $ | 53 | | | $ | 209 | | | $ | 262 | | | $ | 320 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net income per diluted share attributable to the company: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.31 | | | $ | 1.16 | | | $ | 1.53 | | | $ | 1.78 | |
Income from discontinued operations | | | 0.00 | | | | 2.61 | | | | 0.00 | | | | 2.88 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net income attributable to the company | | $ | 0.31 | | | $ | 3.77 | | | $ | 1.53 | | | $ | 4.66 | |
| | | | | | | | | | | | | | | | |
| | | | |
Shares used to compute net income per diluted share | | | 170.0 | | | | 179.7 | | | | 171.6 | | | | 180.0 | |
MeadWestvaco Corporation and consolidated subsidiary companies
5
Consolidated Balance Sheets
In millions (Unaudited)
| | | | | | | | |
| | | December 31, 2014 | | | December 31, 2013 | |
Assets | | | | | | | | |
Cash and cash equivalents | | $ | 454 | | | $ | 1,057 | |
Accounts receivable, net | | | 626 | | | | 625 | |
Inventories | | | 693 | | | | 686 | |
Other current assets | | | 189 | | | | 108 | |
| | | | | | | | |
Current assets | | | 1,962 | | | | 2,476 | |
| | |
Property, plant, equipment and forestlands, net | | | 3,422 | | | | 3,647 | |
Prepaid pension asset | | | 1,374 | | | | 1,475 | |
Goodwill | | | 692 | | | | 716 | |
Restricted assets held by special purpose entities | | | 1,258 | | | | 1,258 | |
Other assets | | | 643 | | | | 713 | |
| | | | | | | | |
| | |
| | $ | 9,351 | | | $ | 10,285 | |
| | | | | | | | |
| | |
Liabilities and Equity | | | | | | | | |
Accounts payable | | $ | 547 | | | $ | 563 | |
Accrued expenses | | | 391 | | | | 534 | |
Notes payable and current maturities of long-term debt | | | 82 | | | | 79 | |
| | | | | | | | |
Current liabilities | | | 1,020 | | | | 1,176 | |
| | |
Long-term debt | | | 1,790 | | | | 1,816 | |
Non-recourse liabilities held by special purpose entities | | | 1,112 | | | | 1,112 | |
Deferred income taxes | | | 1,321 | | | | 1,348 | |
Other long-term obligations | | | 701 | | | | 734 | |
| | |
Shareholders’ equity | | | 3,253 | | | | 3,944 | |
Non-controlling interests | | | 154 | | | | 155 | |
| | | | | | | | |
Total equity | | | 3,407 | | | | 4,099 | |
| | | | | | | | |
| | |
| | $ | 9,351 | | | $ | 10,285 | |
| | | | | | | | |
MeadWestvaco Corporation and consolidated subsidiary companies
6
Condensed Consolidated Statements of Cash Flow
In millions (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Twelve Months Ended
December 31, | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
Cash flow from operating activities: | | | | | | | | |
Net income | | $ | 69 | | | $ | 678 | | | $ | 281 | | | $ | 838 | |
Discontinued operations | | | — | | | | (468 | ) | | | (1 | ) | | | (519 | ) |
Depreciation, depletion and amortization | | | 91 | | | | 101 | | | | 370 | | | | 390 | |
Deferred income taxes | | | 23 | | | | — | | | | 47 | | | | 7 | |
Pension income (excluding settlements, curtailments, and termination benefits) | | | (30 | ) | | | (32 | ) | | | (121 | ) | | | (106 | ) |
Changes in working capital | | | 138 | | | | 82 | | | | (92 | ) | | | (82 | ) |
Payment of alternative minimum taxes – forestlands sale | | | — | | | | — | | | | (98 | ) | | | — | |
Change in alternative fuel mixture credit reserves | | | — | | | | (165 | ) | | | — | | | | (165 | ) |
Other operating activities from continuing operations | | | 7 | | | | (2 | ) | | | (5 | ) | | | (5 | ) |
| | | | | | | | | | | | | | | | |
Net cash provided by continuing operations | | | 298 | | | | 194 | | | | 381 | | | | 358 | |
Discontinued operations | | | — | | | | (17 | ) | | | 1 | | | | 79 | |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 298 | | | | 177 | | | | 382 | | | | 437 | |
| | |
Cash flow from investing activities: | | | | | | | | |
Capital expenditures | | | (132 | ) | | | (169 | ) | | | (346 | ) | | | (506 | ) |
Other investing activities from continuing operations | | | 8 | | | | 1 | | | | 86 | | | | 25 | |
Discontinued operations | | | — | | | | 72 | | | | — | | | | 70 | |
| | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (124 | ) | | | (96 | ) | | | (260 | ) | | | (411 | ) |
| | |
Cash flow from financing activities: | | | | | | | | |
Payments of debt and notes payable, net | | | (6 | ) | | | (226 | ) | | | (15 | ) | | | (250 | ) |
Dividends paid - regular | | | (42 | ) | | | (44 | ) | | | (169 | ) | | | (177 | ) |
Dividends paid - special | | | — | | | | — | | | | (175 | ) | | | — | |
Stock repurchases | | | (54 | ) | | | (126 | ) | | | (399 | ) | | | (126 | ) |
Proceeds from secured financing | | | — | | | | 774 | | | | — | | | | 774 | |
Proceeds from formation of joint venture | | | — | | | | 153 | | | | — | | | | 153 | |
Other financing activities from continuing operations | | | (5 | ) | | | (9 | ) | | | 50 | | | | 19 | |
| | | | | | | | | | | | | | | | |
Net cash (used in) provided by financing activities | | | (107 | ) | | | 522 | | | | (708 | ) | | | 393 | |
| | | | |
Effect of exchange rate changes on cash | | | (13 | ) | | | (8 | ) | | | (17 | ) | | | (25 | ) |
| | | | | | | | | | | | | | | | |
Increase (decrease) in cash and cash equivalents | | | 54 | | | | 595 | | | | (603 | ) | | | 394 | |
| | |
Cash and cash equivalents: | | | | | | | | |
At beginning of period | | | 400 | | | | 462 | | | | 1,057 | | | | 663 | |
| | | | | | | | | | | | | | | | |
At end of period | | $ | 454 | | | $ | 1,057 | | | $ | 454 | | | $ | 1,057 | |
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MeadWestvaco Corporation and consolidated subsidiary companies
7
Segment Information
In millions (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Twelve Months Ended
December 31, | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
Sales | | | | | | | | | | | | | | | | |
Food & Beverage | | $ | 765 | | | $ | 747 | | | $ | 3,228 | | | $ | 3,106 | |
Home, Health & Beauty | | | 191 | | | | 182 | | | | 781 | | | | 743 | |
Industrial | | | 139 | | | | 146 | | | | 560 | | | | 548 | |
Specialty Chemicals | | | 241 | | | | 234 | | | | 1,041 | | | | 980 | |
Community Development & Land Management | | | 45 | | | | 6 | | | | 58 | | | | 20 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total | | | 1,381 | | | | 1,315 | | | | 5,668 | | | | 5,397 | |
Inter-segment eliminations | | | (7 | ) | | | (5 | ) | | | (37 | ) | | | (8 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Consolidated total | | $ | 1,374 | | | $ | 1,310 | | | $ | 5,631 | | | $ | 5,389 | |
| | | | | | | | | | | | | | | | |
| | | | |
Segment profit | | | | | | | | | | | | | | | | |
Food & Beverage | | $ | 71 | | | $ | 61 | | | $ | 326 | | | $ | 239 | |
Home, Health & Beauty | | | 14 | | | | 4 | | | | 55 | | | | 21 | |
Industrial | | | 27 | | | | 18 | | | | 86 | | | | 65 | |
Specialty Chemicals | | | 53 | | | | 53 | | | | 242 | | | | 229 | |
Community Development & Land Management | | | 13 | | | | (4 | ) | | | 6 | | | | (14 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Subtotal | | | 178 | | | | 132 | | | | 715 | | | | 540 | |
Non-controlling interests | | | 16 | | | | 1 | | | | 18 | | | | (1 | ) |
Corporate and Other1 | | | (97 | ) | | | (50 | ) | | | (336 | ) | | | (317 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Consolidated total2 | | $ | 97 | | | $ | 83 | | | $ | 397 | | | $ | 222 | |
| | | | | | | | | | | | | | | | |
| 1 | Corporate and Other includes expenses associated with corporate support staff services, as well as income and expense items not directly associated with ongoing segment operations, such as restructuring charges, pension income and settlement charges, interest expense and income, non-controlling interest income and losses, certain legal settlements, gains and losses on certain asset sales and other items. |
| 2 | Represents income from continuing operations before income taxes. |
MeadWestvaco Corporation and consolidated subsidiary companies
8
Use of Non-GAAP Measures
The company has presented certain financial measures, defined below, which have not been prepared in accordance with generally accepted accounting principles (“GAAP”) and have provided a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP. These financial measures are not meant to be considered in isolation or as a substitute for the most directly comparable financial measure calculated in accordance with GAAP. The company believes these non-GAAP financial measures provide investors, potential investors, securities analysts and others with useful information to evaluate the performance of the business, because such measures exclude items that management believes are not indicative of the ongoing operating results of the company.
Pre-tax Income, Net Income and Earnings Per Share – Ex-items
Set forth below is a reconciliation of pre- and after-tax income and earnings per share from continuing operations as calculated in accordance with GAAP to the respective financial measures on an adjusted basis.
| | | | | | | | | | | | | | | | |
In millions, except per share amounts (unaudited) Three months ended December 31 | | 2014
Net
Income | | | 2014
Earnings
Per Share | | | 2013
Net
Income | | | 2013
Earnings
Per Share | |
Income and earnings per share from continuing operations, as reported | | $ | 53 | | | $ | 0.31 | | | $ | 209 | | | $ | 1.16 | |
| | | | |
Add: | | | | | | | | | | | | | | | | |
Restructuring and other charges | | | 34 | | | | 0.20 | | | | 8 | | | | 0.05 | |
Deduct: | | | | | | | | | | | | | | | | |
Discrete income tax items | | | (9 | ) | | | (0.05 | ) | | | — | | | | — | |
Alternative fuel mixture credits – reserve releases | | | — | | | | — | | | | (166 | ) | | | (0.92 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Income and earnings per share from continuing operations, as adjusted | | $ | 78 | | | $ | 0.46 | | | $ | 51 | | | $ | 0.29 | |
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In millions, except per share amounts (unaudited) Twelve months ended December 31 | | 2014
Net
Income | | | 2014
Earnings
Per Share | | | 2013
Net
Income | | | 2013
Earnings
Per Share | |
Income and earnings per share from continuing operations, as reported | | $ | 262 | | | $ | 1.53 | | | $ | 320 | | | $ | 1.78 | |
| | | | |
Add: | | | | | | | | | | | | | | | | |
Restructuring and other charges | | | 81 | | | | 0.47 | | | | 32 | | | | 0.18 | |
Pension settlement charge | | | — | | | | — | | | | 12 | | | | 0.06 | |
Deduct: | | | | | | | | | | | | | | | | |
Insurance settlement | | | (17 | ) | | | (0.10 | ) | | | — | | | | — | |
Discrete income tax items | | | (9 | ) | | | (0.05 | ) | | | (13 | ) | | | (0.07 | ) |
Alternative fuel mixture credits – reserve releases | | | | | | | | | | | (166 | ) | | | (0.92 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Income and earnings per share from continuing operations, as adjusted | | $ | 317 | | | $ | 1.85 | | | $ | 185 | | | $ | 1.03 | |
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MeadWestvaco Corporation and consolidated subsidiary companies
9
EBITDA and EBITDA Margins – Ex-items
Set forth below is a reconciliation of the operational measures of both consolidated and segment-level EBITDA and EBITDA Margins (ex-items) to the most directly comparable GAAP measures, net sales, net income, and segment profit.
Consolidated EBITDA ex-items and EBITDA Margins ex-items
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Twelve Months Ended
December 31, | |
| ($ in millions) | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
Net income | | $ | 69 | | | $ | 678 | | | $ | 281 | | | $ | 838 | |
| | | | |
Add: | | | | | | | | | | | | | | | | |
Restructuring and other charges | | | 36 | | | | 13 | | | | 101 | | | | 49 | |
Pension settlement and other charges | | | — | | | | — | | | | — | | | | 19 | |
Depreciation, depletion, and amortization | | | 91 | | | | 101 | | | | 370 | | | | 390 | |
Interest expense | | | 53 | | | | 42 | | | | 213 | | | | 159 | |
Income tax provision | | | 28 | | | | — | | | | 117 | | | | — | |
Non-controlling interests | | | — | | | | — | | | | — | | | | 1 | |
| | | | |
Deduct: | | | | | | | | | | | | | | | | |
Insurance settlements | | | — | | | | — | | | | (27 | ) | | | — | |
Alternative fuel mixture credits - reserve releases | | | — | | | | (24 | ) | | | — | | | | (24 | ) |
Interest income | | | (15 | ) | | | (6 | ) | | | (57 | ) | | | (14 | ) |
Income tax benefit | | | — | | | | (127 | ) | | | — | | | | (97 | ) |
Income from discontinued operations | | | — | | | | (468 | ) | | | (1 | ) | | | (519 | ) |
Non-controlling interests | | | (16 | ) | | | (1 | ) | | | (18 | ) | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
EBITDA, as adjusted | | $ | 246 | | | $ | 208 | | | $ | 979 | | | $ | 802 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net sales | | $ | 1,374 | | | $ | 1,310 | | | $ | 5,631 | | | $ | 5,389 | |
EBITDA Margin | | | 17.9 | % | | | 15.9 | % | | | 17.4 | % | | | 14.9 | % |
MeadWestvaco Corporation and consolidated subsidiary companies
10
Segment EBITDA and EBITDA Margins
| | | | | | | | | | | | | | | | | | | | |
| ($ in millions) | | Sales | | | Segment
profit | | | Depreciation,
depletion
and
amortization | | | EBITDA | | | EBITDA
Margins | |
Three Months Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Food & Beverage | | $ | 765 | | | $ | 71 | | | $ | 55 | | | $ | 126 | | | | 16.5 | % |
Home, Health & Beauty | | | 191 | | | | 14 | | | | 15 | | | | 29 | | | | 15.2 | % |
Industrial | | | 139 | | | | 27 | | | | 10 | | | | 37 | | | | 26.6 | % |
Specialty Chemicals | | | 241 | | | | 53 | | | | 9 | | | | 62 | | | | 25.7 | % |
Community Development and Land Management | | | 45 | | | | 13 | | | | 1 | | | | 14 | | | | 31.1 | % |
| | | | | |
Three Months Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Food & Beverage | | $ | 747 | | | $ | 61 | | | $ | 54 | | | $ | 115 | | | | 15.4 | % |
Home, Health & Beauty | | | 182 | | | | 4 | | | | 18 | | | | 22 | | | | 12.1 | % |
Industrial | | | 146 | | | | 18 | | | | 11 | | | | 29 | | | | 19.9 | % |
Specialty Chemicals | | | 234 | | | | 53 | | | | 8 | | | | 61 | | | | 26.1 | % |
Community Development and Land Management | | | 6 | | | | (4 | ) | | | — | | | | (4 | ) | | | NM | |
| | | | | |
| ($ in millions) | | Sales | | | Segment
profit | | | Depreciation,
depletion
and
amortization | | | EBITDA | | | EBITDA
Margins | |
Twelve Months Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Food & Beverage | | $ | 3,228 | | | $ | 326 | | | $ | 217 | | | $ | 543 | | | | 16.8 | % |
Home, Health & Beauty | | | 781 | | | | 55 | | | | 64 | | | | 119 | | | | 15.2 | % |
Industrial | | | 560 | | | | 86 | | | | 42 | | | | 128 | | | | 22.9 | % |
Specialty Chemicals | | | 1,041 | | | | 242 | | | | 33 | | | | 275 | | | | 26.4 | % |
Community Development and Land Management | | | 58 | | | | 6 | | | | 2 | | | | 8 | | | | 13.8 | % |
| | | | | |
Twelve Months Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Food & Beverage | | $ | 3,106 | | | $ | 239 | | | $ | 217 | | | $ | 456 | | | | 14.7 | % |
Home, Health & Beauty | | | 743 | | | | 21 | | | | 69 | | | | 90 | | | | 12.1 | % |
Industrial | | | 548 | | | | 65 | | | | 40 | | | | 105 | | | | 19.2 | % |
Specialty Chemicals | | | 980 | | | | 229 | | | | 33 | | | | 262 | | | | 26.7 | % |
Community Development and Land Management | | | 20 | | | | (14 | ) | | | 1 | | | | (13 | ) | | | NM | |
MeadWestvaco Corporation and consolidated subsidiary companies
###
11
