Reynolds Consumer Products Reports Second Quarter 2022 Financial Results

August 9, 2022

Continued Pricing Significantly Offsetting Cost Increases

Market Share Remains Strong

Stepping Up Advertising & Promotion

Expanding Reyvolution Cost Savings

LAKE FOREST, Ill.--(BUSINESS WIRE)--Aug. 9, 2022-- Reynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”) (Nasdaq: REYN) today reported results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Net Revenues of $917 million, up 5% over Q2 prior year net revenues
  • Net Income of $52 million; Adjusted Net Income of $54 million
  • Adjusted EBITDA of $118 million
  • Earnings Per Share of $0.25; Adjusted Earnings Per Share of $0.26

Net revenues increased 5% over second quarter 2021 net revenues, driven by price increases, partially offset by a decline in volume. Net income was $52 million, down 35% versus last year’s second quarter net income, and Adjusted EBITDA was $118 million, down 20% versus last year’s second quarter Adjusted EBITDA. The decline in Adjusted EBITDA was driven by lower volume primarily due to declines in foil consumption as well as higher material, manufacturing, logistics and advertising costs, which were significantly offset by price increases across our entire portfolio.

“We narrowed the gap between pricing and cost increases in the second quarter and delivered earnings in line with our expectations in spite of slowing demand for foil,” said Lance Mitchell, President and Chief Executive Officer. “The Reynolds Cooking & Baking business unit’s second quarter earnings were down due to lower foil consumption and higher aluminum costs in inventory. We are taking corrective promotional price actions to improve foil trends and have seen consumption declines moderate since late June. We also expect a substantial improvement in Reynolds Cooking & Baking margins during the fourth quarter as we ship foil reflecting lowering aluminum costs. Our cumulative pricing actions and easing commodity costs position us for increasing investment in our categories which we expect will deliver margin improvement in the fourth quarter and full recovery of pre-pandemic profitability in 2023.”

Reynolds Cooking & Baking

  • Net revenues decreased $9 million, or 3%
  • Adjusted EBITDA decreased $23 million, or 39%

Net revenues decreased 3% as price increases were more than offset by lower foil consumption and reroll volume. Lower volume drove the majority of the Adjusted EBITDA decrease. Material, manufacturing and logistics cost increases in excess of price increases also contributed to the Adjusted EBITDA decrease.

Volume decreased 19% driven primarily by lower foil consumption and reroll volume. Timing of retailer replenishment also impacted shipments early in the quarter.

Category volume in key categories including parchment, bakeware, foil and cooking bags remains above pre-pandemic levels. Reynolds Wrap volume declines have begun moderating since late June with increased promotions. Reynolds Cooking & Baking also continues to see benefits from product introductions, including Reynolds Wrap Everyday Non-stick Foil, Reynolds Kitchens Unbleached Parchment and Reynolds Kitchens Butcher Paper.

Hefty Waste & Storage

  • Net revenues increased $18 million, or 8%
  • Adjusted EBITDA increased $1 million, or 2%

Net revenues increased 8% as price increases more than offset a volume decline. Adjusted EBITDA increased 2% as price increases offset higher material, manufacturing, and logistics costs as well as higher advertising costs.

Volume decreased 3% driven by lower waste and food bag usage as consumers spend less time at home.

The Hefty brand was recognized by Ad Age as one of 20 brands gaining Gen Z love in 2022 and was the only major waste bag brand that grew both retail dollar sales and volume in the first half, driven by innovation and base trends, according to IRI. Hefty Fabuloso® was a major driver, extending into high count large black bag packs and new 4 and 8 gallon items and growing to nearly $100 million in annual retail sales in the quarter.

Hefty Energy Bag remains the official residential collection program of hard-to-recycle plastics in the U.S. and is expanding to Chattanooga, Tennessee this month.

Hefty Tableware

  • Net revenues increased $23 million, or 11%
  • Adjusted EBITDA decreased $20 million, or 44%

Net revenues increased 11% driven by price increases. Adjusted EBITDA decreased 44% as pricing lagged increases in material, manufacturing and logistics costs as well as higher advertising costs.

Volume was flat as gains for Hefty disposable plates and private label party cups were offset by declines in other disposable tableware.

Hefty Compostable Printed Paper Plates were introduced, and Hefty ECOSAVE™ was a major source of growth again in the quarter.

Presto Products

  • Net revenues increased $8 million, or 6%
  • Adjusted EBITDA increased $4 million, or 19%

Net revenues increased 6% as price increases were partially offset by lower volume. Adjusted EBITDA increased 19% driven by timing of pricing actions to recover higher material, manufacturing, and logistics costs, partially offset by lower volume.

Volume decreased 7% driven by lower waste and food bag usage.

Presto maintained strong share of private label food bags, and new products remained a major source of growth.

Year to Date 2022 Highlights

  • Net Revenues of $1,762 million, up 8% over prior year net revenues
  • Net Income of $104 million; Adjusted Net Income of $109 million
  • Adjusted EBITDA of $230 million
  • Earnings Per Share of $0.50; Adjusted Earnings Per Share of $0.52

Net revenues increased 8%, driven by price increases, partially offset by lower volume. Net income decreased 32%, and Adjusted EBITDA decreased 20%, reflecting lower volume and the impact of price increases lagging increases in material, manufacturing and logistics costs as well as higher advertising costs.

Balance Sheet and Cash Flow Highlights

  • At June 30, 2022, our cash and cash equivalents were $101 million, and our outstanding debt was $2,101 million, resulting in net debt of $2,000 million.
  • Capital expenditures were $56 million for the six months ended June 30, 2022 compared to $73 million in the prior year period.

Fiscal Year, Third Quarter and Fourth Quarter Outlook

The Company now expects the following results for its fiscal year ending December 31, 2022:

  • Net revenues to be in the range of 8% to 11% growth on $3,556 million in the prior year driven by price increases and volume down mid single digits
  • Net Income to be in the range of $269 million to $292 million; Adjusted Net Income to be in the range of $278 million to $301 million
  • Adjusted EBITDA to be in the range of $560 million to $590 million
  • Earnings Per Share to be in the range of $1.28 to $1.39 per share; Adjusted Earnings Per Share to be in the range of $1.32 to $1.43 per share

The Company also expects Net Debt to be $1.9 billion to $2.0 billion at December 31, 2022.

The Company assumes additional elasticity to its expectations from May 2022 and that it effectively manages staffing, third-party manufacturing and logistics related disruptions.

The Company estimates 2022 cost pressures of approximately $525 million (previously approximately $450 million). Commodity rates are assumed stable-to-easing versus end of July levels.

The Company also expects the following results for its third quarter ending September 30, 2022:

  • Net revenues to grow 8% to 12% on $905 million in the prior year driven by price increases and an estimated low to mid single digit volume decline
  • Net Income to be in the range of $43 million to $51 million; Adjusted Net Income to be in the range of $45 million to $53 million
  • Adjusted EBITDA to be in the range of $110 million to $120 million
  • Earnings Per Share to be in the range of $0.20 to $0.24 per share; Adjusted Earnings Per Share to be in the range of $0.21 to $0.25 per share

The Company also expects the following results for its fourth quarter ending December 31, 2022:

  • Net revenues to grow 9% to 17% on $1,021 million in the prior year driven by price increases and flat to slightly down volume
  • Net Income to be in the range of $122 million to $137 million; Adjusted Net Income to be in the range of $124 million to $139 million
  • Adjusted EBITDA to be in the range of $220 million to $240 million
  • Earnings Per Share to be in the range of $0.58 to $0.65 per share; Adjusted Earnings Per Share to be in the range of $0.59 to $0.66 per share

“Our pricing actions have significantly offset cost increases in the second quarter, and we have announced additional price increases to enable full recovery of material, manufacturing and logistics cost increases,” said Michael Graham, Chief Financial Officer. “The combination of these price increases and easing commodity costs represents increasing flexibility to invest in our categories, substantial expected margin expansion in the fourth quarter and a strong foundation for additional margin expansion and full recovery of pre-pandemic profitability in 2023. We are also expanding Reyvolution cost savings objectives and have identified multiple opportunities for further gains in efficiencies and profitability.”

Quarterly Dividend

The Company’s Board of Directors has approved a quarterly dividend of $0.23 per common share. The Company expects to pay this dividend on August 31, 2022, to shareholders of record as of August 17, 2022.

Conference Call and Webcast Presentation

The Company will host a conference call to discuss these results at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) on Tuesday, August 9, 2022. Investors interested in participating in the live call can dial 877-423-9813 from the U.S. and 201-689-8573 internationally. A telephone replay will be available approximately two hours after the call concludes through Tuesday, August 23, 2022, by dialing 844-512-2921 from the U.S., or 412-317-6671 from international locations, and entering confirmation code 13726944.

There will also be a simultaneous, live webcast available on the Investors section of the Company’s website at www.reynoldsconsumerproducts.com. The webcast will be archived for 30 days.

About Reynolds Consumer Products Inc.

RCP’s mission is to simplify daily life so consumers can enjoy what matters most. RCP is a market-leading consumer products company with a presence in 95% of households across the United States. RCP produces and sells products across three broad categories: cooking products, waste and storage products and tableware; that are sold under iconic brands such as Reynolds and Hefty, as well as under store brands that are strategically important to RCP’s customers. Overall, across both branded and store brand offerings, RCP holds the #1 or #2 U.S. market share position in the majority of product categories in which it participates.

Note to Investors Regarding Forward Looking Statements

This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including our third quarter, fourth quarter and fiscal year 2022 guidance. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “intends,” “outlook,” “forecast”, “committed,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “model”, “assumes,” “confident,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth, management of costs and other disruptions and other strategies, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K.

For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

REYN-F

 

Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Income
(amounts in millions, except for per share data)

 
 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net revenues

 

$

896

 

 

$

847

 

 

$

1,714

 

 

$

1,579

 

Related party net revenues

 

 

21

 

 

 

26

 

 

 

48

 

 

 

50

 

Total net revenues

 

 

917

 

 

 

873

 

 

 

1,762

 

 

 

1,629

 

Cost of sales

 

 

(733

)

 

 

(665

)

 

 

(1,410

)

 

 

(1,229

)

Gross profit

 

 

184

 

 

 

208

 

 

 

352

 

 

 

400

 

Selling, general and administrative expenses

 

 

(91

)

 

 

(89

)

 

 

(174

)

 

 

(167

)

Other expense, net

 

 

(7

)

 

 

(2

)

 

 

(12

)

 

 

(5

)

Income from operations

 

 

86

 

 

 

117

 

 

 

166

 

 

 

228

 

Interest expense, net

 

 

(16

)

 

 

(12

)

 

 

(28

)

 

 

(24

)

Income before income taxes

 

 

70

 

 

 

105

 

 

 

138

 

 

 

204

 

Income tax expense

 

 

(18

)

 

 

(25

)

 

 

(34

)

 

 

(50

)

Net income

 

$

52

 

 

$

80

 

 

$

104

 

 

$

154

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.25

 

 

$

0.38

 

 

$

0.50

 

 

$

0.73

 

Diluted

 

$

0.25

 

 

$

0.38

 

 

$

0.50

 

 

$

0.73

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

209.9

 

 

 

209.8

 

 

 

209.8

 

 

 

209.7

 

Diluted

 

 

209.9

 

 

 

209.9

 

 

 

209.9

 

 

 

209.8

 

                                 
 

Reynolds Consumer Products Inc.
Condensed Consolidated Balance Sheets
(amounts in millions, except for per share data)

 
 

 

 

(Unaudited)
As of June 30,
2022

 

 

As of
December 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

101

 

 

$

164

 

Accounts receivable (net of allowance for doubtful accounts of $1 and $1)

 

 

259

 

 

 

316

 

Other receivables

 

 

8

 

 

 

12

 

Related party receivables

 

 

8

 

 

 

10

 

Inventories

 

 

734

 

 

 

583

 

Other current assets

 

 

38

 

 

 

19

 

Total current assets

 

 

1,148

 

 

 

1,104

 

Property, plant and equipment (net of accumulated depreciation of $791 and $752)

 

 

684

 

 

 

677

 

Operating lease right-of-use assets, net

 

 

63

 

 

 

55

 

Goodwill

 

 

1,879

 

 

 

1,879

 

Intangible assets, net

 

 

1,046

 

 

 

1,061

 

Other assets

 

 

39

 

 

 

36

 

Total assets

 

$

4,859

 

 

$

4,812

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

277

 

 

$

261

 

Related party payables

 

 

46

 

 

 

38

 

Current portion of long-term debt

 

 

25

 

 

 

25

 

Accrued and other current liabilities

 

 

171

 

 

 

160

 

Total current liabilities

 

 

519

 

 

 

484

 

Long-term debt

 

 

2,076

 

 

 

2,087

 

Long-term operating lease liabilities

 

 

52

 

 

 

46

 

Deferred income taxes

 

 

352

 

 

 

351

 

Long-term postretirement benefit obligation

 

 

50

 

 

 

50

 

Other liabilities

 

 

34

 

 

 

38

 

Total liabilities

 

$

3,083

 

 

$

3,056

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 2,000 shares authorized; 210 shares issued and outstanding

 

 

 

 

 

 

Additional paid-in capital

 

 

1,383

 

 

 

1,381

 

Accumulated other comprehensive income

 

 

20

 

 

 

10

 

Retained earnings

 

 

373

 

 

 

365

 

Total stockholders' equity

 

 

1,776

 

 

 

1,756

 

Total liabilities and stockholders' equity

 

$

4,859

 

 

$

4,812

 

                 
 

Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Cash Flows
(amounts in millions)

 
 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2022

 

 

2021

 

Cash provided by operating activities

 

 

 

 

 

 

 

 

Net income

 

$

104

 

 

$

154

 

Adjustments to reconcile net income to operating cash flows:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

57

 

 

 

53

 

Deferred income taxes

 

 

(3

)

 

 

(4

)

Stock compensation expense

 

 

4

 

 

 

3

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

57

 

 

 

(40

)

Other receivables

 

 

4

 

 

 

3

 

Related party receivables

 

 

3

 

 

 

 

Inventories

 

 

(151

)

 

 

(163

)

Accounts payable

 

 

22

 

 

 

54

 

Related party payables

 

 

8

 

 

 

(6

)

Income taxes payable / receivable

 

 

(2

)

 

 

(14

)

Accrued and other current liabilities

 

 

12

 

 

 

(22

)

Other assets and liabilities

 

 

(14

)

 

 

 

Net cash provided by operating activities

 

 

101

 

 

 

18

 

Cash used in investing activities

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

 

(56

)

 

 

(73

)

Net cash used in investing activities

 

 

(56

)

 

 

(73

)

Cash used in financing activities

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(12

)

 

 

(112

)

Dividends paid

 

 

(96

)

 

 

(96

)

Net cash used in financing activities

 

 

(108

)

 

 

(208

)

Net decrease in cash and cash equivalents

 

 

(63

)

 

 

(263

)

Cash and cash equivalents at beginning of period

 

 

164

 

 

 

312

 

Cash and cash equivalents at end of period

 

$

101

 

 

$

49

 

 

 

 

 

 

 

 

 

 

Cash paid:

 

 

 

 

 

 

 

 

Income taxes

 

 

37

 

 

 

67

 

                 
 

Reynolds Consumer Products Inc.
Segment Results
(amounts in millions)

 
 

 

 

Reynolds
Cooking
& Baking

 

 

Hefty
Waste &
Storage

 

 

Hefty
Tableware

 

 

Presto
Products

 

 

Unallocated(1)

 

 

Total

 

Revenues

 

 

 

Three Months Ended June 30, 2022

 

$

294

 

 

$

238

 

 

$

240

 

 

$

150

 

 

$

(5

)

 

$

917

 

Three Months Ended June 30, 2021

 

 

303

 

 

 

220

 

 

 

217

 

 

 

142

 

 

 

(9

)

 

 

873

 

Six Months Ended June 30, 2022

 

 

562

 

 

 

466

 

 

 

450

 

 

 

292

 

 

 

(8

)

 

 

1,762

 

Six Months Ended June 30, 2021

 

 

574

 

 

 

414

 

 

 

386

 

 

 

268

 

 

 

(13

)

 

 

1,629

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

$

36

 

 

$

46

 

 

$

25

 

 

$

25

 

 

$

(14

)

 

$

118

 

Three Months Ended June 30, 2021

 

 

59

 

 

 

45

 

 

 

45

 

 

 

21

 

 

 

(22

)

 

 

148

 

Six Months Ended June 30, 2022

 

 

64

 

 

 

91

 

 

 

48

 

 

 

44

 

 

 

(17

)

 

 

230

 

Six Months Ended June 30, 2021

 

 

111

 

 

 

90

 

 

 

79

 

 

 

38

 

 

 

(30

)

 

 

288

 

(1)  

The unallocated net revenues include elimination of intersegment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments.

     
 

Components of Change in Net Revenues for the Three Months Ended June 30, 2022 vs. the Three Months Ended June 30, 2021

 
 

 

 

Price

 

 

Volume/Mix

 

 

Total

 

Reynolds Cooking & Baking

 

 

16

%

 

 

(19

)%

 

 

(3

)%

Hefty Waste & Storage

 

 

11

%

 

 

(3

)%

 

 

8

%

Hefty Tableware

 

 

11

%

 

 

 

 

 

11

%

Presto Products

 

 

13

%

 

 

(7

)%

 

 

6

%

Total RCP

 

 

14

%

 

 

(9

)%

 

 

5

%

                         
 

Components of Change in Net Revenues for the Six Months Ended June 30, 2022 vs. the Six Months Ended June 30, 2021

 
 

 

 

Price

 

 

Volume/Mix

 

 

Total

 

Reynolds Cooking & Baking

 

 

14

%

 

 

(16

)%

 

 

(2

)%

Hefty Waste & Storage

 

 

12

%

 

 

1

%

 

 

13

%

Hefty Tableware

 

 

13

%

 

 

4

%

 

 

17

%

Presto Products

 

 

14

%

 

 

(5

)%

 

 

9

%

Total RCP

 

 

13

%

 

 

(5

)%

 

 

8

%

                         
                         

Use of Non-GAAP Financial Measures

We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” and “Net Debt” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, depreciation and amortization and further adjusted to exclude IPO and separation-related costs. We define Adjusted Net Income and Adjusted Earnings Per Share as Net Income and Earnings Per Share calculated in accordance with GAAP, plus the sum of IPO and separation-related costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents.

We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted Earnings Per Share as supplemental metrics to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. Accordingly, we believe presenting these metrics provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.

Guidance for fiscal year, third quarter and fourth quarter 2022, where adjusted, is provided on a non-GAAP basis. The Company cannot reconcile its expected Adjusted EBITDA to expected Net Income under “Fiscal Year, Third Quarter and Fourth Quarter Outlook” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results. In addition, the Company cannot reconcile its expected Net Debt to expected total debt without reasonable effort because certain items that impact total debt and other reconciling metrics are out of the Company’s control and/or cannot be reasonable predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results.

Please see reconciliations of Non-GAAP measures used in this release (with the exception of our third quarter, fourth quarter, and full year 2022 Adjusted EBITDA outlook and our 2022 Net Debt outlook, as described above) to the most directly comparable GAAP measures, beginning on the following page.

 

Reynolds Consumer Products Inc.
Reconciliation of Net Income to Adjusted EBITDA
(amounts in millions)

 
 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income – GAAP

 

$

52

 

 

$

80

 

 

$

104

 

 

$

154

 

Income tax expense

 

 

18

 

 

 

25

 

 

 

34

 

 

 

50

 

Interest expense, net

 

 

16

 

 

 

12

 

 

 

28

 

 

 

24

 

Depreciation and amortization

 

 

29

 

 

 

27

 

 

 

57

 

 

 

53

 

IPO and separation-related costs (1)

 

 

3

 

 

 

4

 

 

 

7

 

 

 

7

 

Adjusted EBITDA (Non-GAAP)

 

$

118

 

 

$

148

 

 

$

230

 

 

$

288

 

(1)  

Reflects costs related to the IPO process, as well as costs related to our separation to operate as a stand-alone public company. These costs are included in Other expense, net in our consolidated statements of income.

     
 

Reynolds Consumer Products Inc.
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
(amounts in millions, except per share data)

 
 

 

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

 

Net
Income

 

 

Diluted
Shares

 

 

Diluted
EPS

 

 

Net
Income

 

 

Diluted
Shares

 

 

Diluted
EPS

 

As Reported - GAAP

 

$

52

 

 

 

210

 

 

$

0.25

 

 

$

80

 

 

 

210

 

 

$

0.38

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

2

 

 

 

210

 

 

 

0.01

 

 

 

3

 

 

 

210

 

 

 

0.01

 

Adjusted (Non-GAAP)

 

$

54

 

 

 

210

 

 

$

0.26

 

 

$

83

 

 

 

210

 

 

$

0.39

 

(1)  

Amounts are after tax, calculated using a tax rate of 25.2% and 24.0% for the three months ended June 30, 2022 and 2021, respectively, which is our effective tax rate for the periods presented.

     
             

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

 

 

Net
Income

 

 

Diluted
Shares

 

 

Diluted
EPS

 

 

Net
Income

 

 

Diluted
Shares

 

 

Diluted
EPS

 

As Reported - GAAP

 

$

104

 

 

 

210

 

 

$

0.50

 

 

$

154

 

 

 

210

 

 

$

0.73

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

5

 

 

 

210

 

 

 

0.02

 

 

 

5

 

 

 

210

 

 

 

0.02

 

Adjusted (Non-GAAP)

 

$

109

 

 

 

210

 

 

$

0.52

 

 

$

159

 

 

 

210

 

 

$

0.75

 

(1)  

Amounts are after tax, calculated using a tax rate of 24.8% and 24.5% for the six months ended June 30, 2022 and 2021, respectively, which is our effective tax rate for the periods presented.

     
 

Reynolds Consumer Products Inc.
Reconciliation of Net Debt to Total Debt
(amounts in millions)

 
 

 

 

As of June 30,
2022

 

 

 

 

 

 

Current portion of Long-Term debt

 

$

25

 

Long-Term debt

 

 

2,076

 

Total Debt

 

 

2,101

 

Cash and Cash Equivalents

 

 

(101

)

Net Debt (Non-GAAP)

 

$

2,000

 

         
 

Reynolds Consumer Products Inc.
Reconciliation of Q3 2022 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance
(amounts in millions, except per share data)

 
 

 

 

Net Income

 

 

Diluted Shares

 

 

Diluted Earnings Per Share

 

 

 

Low

 

 

High

 

 

Outstanding

 

 

Low

 

 

High

 

Q3 2022 - Guidance

 

$

43

 

 

$

51

 

 

 

210

 

 

$

0.20

 

 

$

0.24

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

2

 

 

 

2

 

 

 

210

 

 

 

0.01

 

 

 

0.01

 

Q3 2022 - Adjusted Guidance

 

$

45

 

 

$

53

 

 

 

210

 

 

$

0.21

 

 

$

0.25

 

                                         
 

Reynolds Consumer Products Inc.
Reconciliation of Q4 2022 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance
(amounts in millions, except per share data)

 
 

 

 

Net Income

 

 

Diluted Shares

 

 

Diluted Earnings Per Share

 

 

 

Low

 

 

High

 

 

Outstanding

 

 

Low

 

 

High

 

Q4 2022 - Guidance

 

$

122

 

 

$

137

 

 

 

210

 

 

$

0.58

 

 

$

0.65

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

2

 

 

 

2

 

 

 

210

 

 

 

0.01

 

 

 

0.01

 

Q4 2022 - Adjusted Guidance

 

$

124

 

 

$

139

 

 

 

210

 

 

$

0.59

 

 

$

0.66

 

 

Reynolds Consumer Products Inc.
Reconciliation of 2022 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance
(amounts in millions, except per share data)

 
 

 

 

Net Income

 

 

Diluted Shares

 

 

Diluted Earnings Per Share

 

 

 

Low

 

 

High

 

 

Outstanding

 

 

Low

 

 

High

 

Fiscal Year 2022 - Guidance

 

$

269

 

 

$

292

 

 

 

210

 

 

$

1.28

 

 

$

1.39

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

9

 

 

 

9

 

 

 

210

 

 

 

0.04

 

 

 

0.04

 

Fiscal Year 2022 - Adjusted Guidance

 

$

278

 

 

$

301

 

 

 

210

 

 

$

1.32

 

 

$

1.43

 

(1)  

Amounts are after tax calculated using a tax rate of 25.0%, which is the Company’s expected tax rate for Q3, Q4, and FY 2022.

 

Investors
Mark Swartzberg
Mark.Swartzberg@reynoldsbrands.com
(847) 482-4081

Media
Hannah Wright
ReynoldsPR@icrinc.com
(203) 682-8287

Source: Reynolds Consumer Products Inc.


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