Reynolds Consumer Products Reports Third Quarter 2022 Financial Results

November 8, 2022

Closed Gap Between Pricing and Cost Increases

Market Share Strong & Growing in Multiple Categories

Stepping Up Advertising & Promotion

Unlocking Additional Reyvolution Cost Savings

LAKE FOREST, Ill.--(BUSINESS WIRE)--Nov. 8, 2022-- Reynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”) (Nasdaq: REYN) today reported results for the third quarter ended September 30, 2022.

Third Quarter 2022 Highlights

  • Net Revenues of $967 million, up 7% over Q3 prior year net revenues
  • Net Income of $48 million, down 27% compared to Q3 prior year net income; Adjusted Net Income of $50 million
  • Adjusted EBITDA of $116 million, down 12% compared to Q3 prior year Adjusted EBITDA
  • Earnings Per Share of $0.23; Adjusted Earnings Per Share of $0.24

Net revenues increased 7% as pricing more than offset a volume decline resulting from slowing non-retail sales, elasticity and increased consumer activity outside the home. Volume in many of our categories remains well above 2019 levels, driven by more cooking and working at home compared to prior to the pandemic. The decrease in Adjusted EBITDA was driven by lower volume and higher SG&A as price increases fully offset increases in material, manufacturing and logistics costs.

“We closed the gap between pricing and cost increases this quarter while also building share and delivering earnings in line with our expectations,” said Lance Mitchell, President and Chief Executive Officer. “Household foil trends also improved as we attained key retail price points, and Reynolds and Hefty gained share in multiple categories including household foil, waste bags and disposable tableware. The economic environment remains dynamic, inflationary pressures continue and price elasticity continues to be uncertain. However, our cumulative pricing actions, easing commodity costs and accelerating Reyvolution cost savings position us for substantial margin expansion in the fourth quarter and recovery of pre-pandemic profitability in 2023.”

Reynolds Cooking & Baking

  • Net revenues were flat
  • Adjusted EBITDA decreased $23 million, or 41%

Net revenues were flat, as lower shipments were offset by higher pricing implemented in response to increased material, manufacturing and logistics costs. The decrease in Adjusted EBITDA was primarily driven by lower volume and higher material and manufacturing costs, which were partially offset by price increases.

Volume decreased 14% driven by lower non-retail sales and lower household foil shipments.

Household foil consumption and Reynolds Wrap share trends improved in the quarter as we increased features and displays of foil, promotions to key price points were implemented, new digital promotions were offered and private label prices increased. The Reynolds brand also gained share in certain adjacencies to foil during the quarter and continued to benefit from product innovations, including Reynolds Wrap Nonstick Foil, Reynolds Kitchens Air Fryer liners and Reynolds Kitchens Butcher Paper.

Reynolds Cooking & Baking experienced unplanned equipment downtime in the quarter, impacting throughput of non-retail shipments and manufacturing costs and extending the timeline for reduction of higher cost aluminum inventory. While most of these issues are temporary in nature, we are implementing operational changes to address all of them.

Hefty Waste & Storage

  • Net revenues were flat
  • Adjusted EBITDA increased $7 million, or 19%

Net revenues were flat as pricing actions taken in response to increased material, manufacturing and logistics costs were offset by lower volume. Adjusted EBITDA increased 19% driven by price increases to recover higher material, manufacturing and logistics costs, partially offset by higher advertising costs.

Volume decreased 9% driven by elasticity and increased consumer activity outside the home.

Hefty gained additional waste bag share in the quarter, and waste bag usage continued well above 2019 levels as consumers continued cooking and working more at home. Innovation was a major driver of market share performance including the launch of Hefty 4 & 8 gallon trash bags with new Ocean Water scent, further expansion of Hefty Fabuloso® 4 & 8 gallon bags and the following new e-commerce items: Hefty Made-to-Fit trash bags and Hefty Slider Calendar Bags for better recording of refrigerator and freezer storage times.

Additional waste bag pricing went into effect according to plan in September.

Hefty Tableware

  • Net revenues increased $55 million, or 28%
  • Adjusted EBITDA decreased $1 million, or 4%

Net revenues increased 28% driven by pricing to offset cost increases and accelerating volume growth. Adjusted EBITDA decreased 4% as higher volume was more than offset by price increases lagging increased material, manufacturing and logistics costs.

Volume increased 7% driven by sales of Hefty disposable plates and private label party cups and continued strength in the club channel.

Hefty gained additional share of disposable tableware in the quarter driven by Hefty plates, private label party cups and innovation. Hefty ECOSAVE™ continued as a major contributor to growth, and Hefty Compostable Printed Paper Plates also demonstrated strong initial results.

Additional pricing went into effect according to plan in October.

Presto Products

  • Net revenues increased $4 million, or 3%
  • Adjusted EBITDA increased $9 million, or 64%

Net revenues increased 3% driven by higher pricing implemented in response to increased material, manufacturing and logistics costs, partially offset by lower volume. Adjusted EBITDA increased 64% driven by price increases to recover higher material, manufacturing and logistics costs, partially offset by lower volume.

Volume decreased 8% driven by lower waste and food bag usage.

Presto demonstrated continued private label leadership, increasing displays with major retailers, driving strong innovation including further adoption of stand and fill food bags and delivering strong back to school performance.

Year to Date 2022 Highlights

  • Net Revenues of $2,729 million, up 8% over prior year net revenues
  • Net Income of $152 million; Adjusted Net Income of $160 million
  • Adjusted EBITDA of $346 million
  • Earnings Per Share of $0.72; Adjusted Earnings Per Share of $0.76

Net revenues increased 8%, driven by higher pricing implemented in response to increased material, manufacturing and logistics costs, partially offset by lower volume. Net income decreased 31%, and Adjusted EBITDA decreased 18%, reflecting lower volume, price increases lagging increased material, manufacturing and logistics costs and higher investment in advertising.

Balance Sheet and Cash Flow Highlights

  • At September 30, 2022, our cash and cash equivalents were $33 million, and our outstanding debt was $2,096 million, resulting in net debt of $2,063 million.
  • Capital expenditures were $86 million for the nine months ended September 30, 2022 compared to $101 million in the prior year period.

Fiscal Year and Fourth Quarter Outlook

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

  • Net revenues to be approximately 8% 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 $264 million to $276 million; Adjusted Net Income to be in the range of $273 million to $285 million
  • Adjusted EBITDA to be in the range of $560 million to $575 million
  • Earnings Per Share to be in the range of $1.25 to $1.31 per share; Adjusted Earnings Per Share to be in the range of $1.30 to $1.36 per share

The Company estimates 2022 cost pressures of approximately $525 million. Commodity rates are assumed stable versus end of October levels.

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

  • Net revenues to grow approximately 9% on $1,021 million in the prior year driven by price increases and a low to mid single digit volume decline
  • Net Income to be in the range of $112 million to $124 million; Adjusted Net Income to be in the range of $113 million to $125 million
  • Adjusted EBITDA to be in the range of $215 million to $230 million
  • Earnings Per Share to be in the range of $0.53 to $0.59 per share; Adjusted Earnings Per Share to be in the range of $0.54 to $0.60 per share
  • Net Debt to be approximately $2.0 billion at December 31, 2022

“Our pricing actions and acceleration of Reyvolution cost savings programs continue to drive margin recovery,” said Michael Graham, Chief Financial Officer. “The combination of these measures and easing commodity costs represents increasing flexibility to invest in our categories while also recovering margins. We expect to recover pre-pandemic profitability in 2023 and are equally focused on improving balance sheet efficiency and maintaining capital spending discipline to drive additional cash flow.”

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 November 30, 2022, to shareholders of record as of November 16, 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, November 8, 2022. Investors interested in participating in the live call can dial 877-423-9813 from the U.S. and 201-689-8573 internationally.

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 and available for replay.

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 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”, “position”, “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 Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net revenues

 

$

938

 

 

$

876

 

 

$

2,652

 

 

$

2,455

 

Related party net revenues

 

 

29

 

 

 

29

 

 

 

77

 

 

 

79

 

Total net revenues

 

 

967

 

 

 

905

 

 

 

2,729

 

 

 

2,534

 

Cost of sales

 

 

(789

)

 

 

(723

)

 

 

(2,199

)

 

 

(1,952

)

Gross profit

 

 

178

 

 

 

182

 

 

 

530

 

 

 

582

 

Selling, general and administrative expenses

 

 

(90

)

 

 

(77

)

 

 

(264

)

 

 

(244

)

Other expense, net

 

 

(5

)

 

 

(5

)

 

 

(17

)

 

 

(10

)

Income from operations

 

 

83

 

 

 

100

 

 

 

249

 

 

 

328

 

Interest expense, net

 

 

(20

)

 

 

(12

)

 

 

(48

)

 

 

(36

)

Income before income taxes

 

 

63

 

 

 

88

 

 

 

201

 

 

 

292

 

Income tax expense

 

 

(15

)

 

 

(22

)

 

 

(49

)

 

 

(72

)

Net income

 

$

48

 

 

$

66

 

 

$

152

 

 

$

220

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.23

 

 

$

0.31

 

 

$

0.72

 

 

$

1.05

 

Diluted

 

$

0.23

 

 

$

0.31

 

 

$

0.72

 

 

$

1.05

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

209.9

 

 

 

209.7

 

 

 

209.8

 

 

 

209.7

 

Diluted

 

 

209.9

 

 

 

209.8

 

 

 

209.9

 

 

 

209.8

 

 

Reynolds Consumer Products Inc.

Condensed Consolidated Balance Sheets

(amounts in millions, except for per share data)

 

 

 

(Unaudited)

As of

September 30,

2022

 

 

As of

December 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

33

 

 

$

164

 

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

 

 

289

 

 

 

316

 

Other receivables

 

 

12

 

 

 

12

 

Related party receivables

 

 

10

 

 

 

10

 

Inventories

 

 

796

 

 

 

583

 

Other current assets

 

 

41

 

 

 

19

 

Total current assets

 

 

1,181

 

 

 

1,104

 

Property, plant and equipment (net of accumulated depreciation of $808 and $752)

 

 

693

 

 

 

677

 

Operating lease right-of-use assets, net

 

 

63

 

 

 

55

 

Goodwill

 

 

1,879

 

 

 

1,879

 

Intangible assets, net

 

 

1,038

 

 

 

1,061

 

Other assets

 

 

58

 

 

 

36

 

Total assets

 

$

4,912

 

 

$

4,812

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

295

 

 

$

261

 

Related party payables

 

 

44

 

 

 

38

 

Current portion of long-term debt

 

 

25

 

 

 

25

 

Accrued and other current liabilities

 

 

184

 

 

 

160

 

Total current liabilities

 

 

548

 

 

 

484

 

Long-term debt

 

 

2,071

 

 

 

2,087

 

Long-term operating lease liabilities

 

 

51

 

 

 

46

 

Deferred income taxes

 

 

362

 

 

 

351

 

Long-term postretirement benefit obligation

 

 

49

 

 

 

50

 

Other liabilities

 

 

33

 

 

 

38

 

Total liabilities

 

$

3,114

 

 

$

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

 

 

42

 

 

 

10

 

Retained earnings

 

 

373

 

 

 

365

 

Total stockholders' equity

 

 

1,798

 

 

 

1,756

 

Total liabilities and stockholders' equity

 

$

4,912

 

 

$

4,812

 

 

Reynolds Consumer Products Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in millions)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Cash provided by operating activities

 

 

 

 

 

 

 

 

Net income

 

$

152

 

 

$

220

 

Adjustments to reconcile net income to operating cash flows:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

87

 

 

 

81

 

Deferred income taxes

 

 

(1

)

 

 

8

 

Stock compensation expense

 

 

4

 

 

 

5

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

27

 

 

 

(27

)

Other receivables

 

 

 

 

 

3

 

Related party receivables

 

 

 

 

 

(2

)

Inventories

 

 

(213

)

 

 

(197

)

Accounts payable

 

 

40

 

 

 

64

 

Related party payables

 

 

6

 

 

 

(6

)

Income taxes payable / receivable

 

 

 

 

 

(7

)

Accrued and other current liabilities

 

 

23

 

 

 

(20

)

Other assets and liabilities

 

 

(7

)

 

 

 

Net cash provided by operating activities

 

 

118

 

 

 

122

 

Cash used in investing activities

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

 

(86

)

 

 

(101

)

Net cash used in investing activities

 

 

(86

)

 

 

(101

)

Cash used in financing activities

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(19

)

 

 

(119

)

Dividends paid

 

 

(144

)

 

 

(144

)

Net cash used in financing activities

 

 

(163

)

 

 

(263

)

Net decrease in cash and cash equivalents

 

 

(131

)

 

 

(242

)

Cash and cash equivalents at beginning of period

 

 

164

 

 

 

312

 

Cash and cash equivalents at end of period

 

$

33

 

 

$

70

 

 

 

 

 

 

 

 

 

 

Cash paid:

 

 

 

 

 

 

 

 

Income taxes

 

 

49

 

 

 

72

 

Interest

 

 

42

 

 

 

32

 

 

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 September 30, 2022

 

$

327

 

 

$

237

 

 

$

251

 

 

$

155

 

 

$

(3

)

 

$

967

 

Three Months Ended September 30, 2021

 

 

328

 

 

 

237

 

 

 

196

 

 

 

151

 

 

 

(7

)

 

 

905

 

Nine Months Ended September 30, 2022

 

 

889

 

 

 

704

 

 

 

701

 

 

 

447

 

 

 

(12

)

 

 

2,729

 

Nine Months Ended September 30, 2021

 

 

902

 

 

 

651

 

 

 

582

 

 

 

420

 

 

 

(21

)

 

 

2,534

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2022

 

$

33

 

 

$

44

 

 

$

24

 

 

$

23

 

 

$

(8

)

 

$

116

 

Three Months Ended September 30, 2021

 

 

56

 

 

 

37

 

 

 

25

 

 

 

14

 

 

 

 

 

 

132

 

Nine Months Ended September 30, 2022

 

 

97

 

 

 

135

 

 

 

72

 

 

 

67

 

 

 

(25

)

 

 

346

 

Nine Months Ended September 30, 2021

 

 

167

 

 

 

127

 

 

 

104

 

 

 

52

 

 

 

(30

)

 

 

420

 

(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 September 30, 2022 vs. the Three Months Ended September 30, 2021

 

 

 

Price

 

 

Volume/Mix

 

 

Total

 

Reynolds Cooking & Baking

 

 

14

%

 

 

(14

)%

 

 

%

Hefty Waste & Storage

 

 

9

%

 

 

(9

)%

 

 

%

Hefty Tableware

 

 

21

%

 

 

7

%

 

 

28

%

Presto Products

 

 

11

%

 

 

(8

)%

 

 

3

%

Total RCP

 

 

14

%

 

 

(7

)%

 

 

7

%

 

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

 

 

 

Price

 

 

Volume/Mix

 

 

Total

 

Reynolds Cooking & Baking

 

 

14

%

 

 

(15

)%

 

 

(1

)%

Hefty Waste & Storage

 

 

10

%

 

 

(2

)%

 

 

8

%

Hefty Tableware

 

 

15

%

 

 

5

%

 

 

20

%

Presto Products

 

 

13

%

 

 

(7

)%

 

 

6

%

Total RCP

 

 

14

%

 

 

(6

)%

 

 

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 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 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 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income – GAAP

 

$

48

 

 

$

66

 

 

$

152

 

 

$

220

 

Income tax expense

 

 

15

 

 

 

22

 

 

 

49

 

 

 

72

 

Interest expense, net

 

 

20

 

 

 

12

 

 

 

48

 

 

 

36

 

Depreciation and amortization

 

 

30

 

 

 

27

 

 

 

87

 

 

 

81

 

IPO and separation-related costs (1)

 

 

3

 

 

 

5

 

 

 

10

 

 

 

11

 

Adjusted EBITDA (Non-GAAP)

 

$

116

 

 

$

132

 

 

$

346

 

 

$

420

 

(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

September 30, 2022

 

 

Three Months Ended

September 30, 2021

 

 

 

Net

Income

 

 

Diluted

Shares

 

 

Diluted

EPS

 

 

Net

Income

 

 

Diluted

Shares

 

 

Diluted

EPS

 

As Reported - GAAP

 

$

48

 

 

 

210

 

 

$

0.23

 

 

$

66

 

 

 

210

 

 

$

0.31

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

2

 

 

 

210

 

 

 

0.01

 

 

 

4

 

 

 

210

 

 

 

0.02

 

Adjusted (Non-GAAP)

 

$

50

 

 

 

210

 

 

$

0.24

 

 

$

70

 

 

 

210

 

 

$

0.33

 

(1)

Amounts are after tax, calculated using a tax rate of 24.0% and 24.6% for the three months ended September 30, 2022 and 2021, respectively, which is our effective tax rate for the periods presented.

 

 

 

Nine Months Ended

September 30, 2022

 

 

Nine Months Ended

September 30, 2021

 

 

 

Net

Income

 

 

Diluted

Shares

 

 

Diluted

EPS

 

 

Net

Income

 

 

Diluted

Shares

 

 

Diluted

EPS

 

As Reported - GAAP

 

$

152

 

 

 

210

 

 

$

0.72

 

 

$

220

 

 

 

210

 

 

$

1.05

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

8

 

 

 

210

 

 

 

0.04

 

 

 

8

 

 

 

210

 

 

 

0.04

 

Adjusted (Non-GAAP)

 

$

160

 

 

 

210

 

 

$

0.76

 

 

$

228

 

 

 

210

 

 

$

1.09

 

(1)

Amounts are after tax, calculated using a tax rate of 24.5% and 24.6% for the nine months ended September 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 September 30,

2022

 

 

 

 

 

 

Current portion of Long-Term debt

 

$

25

 

Long-Term debt

 

 

2,071

 

Total Debt

 

 

2,096

 

Cash and Cash Equivalents

 

 

(33

)

Net Debt (Non-GAAP)

 

$

2,063

 

 

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

 

$

112

 

 

$

124

 

 

 

210

 

 

$

0.53

 

 

$

0.59

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

1

 

 

 

1

 

 

 

210

 

 

 

0.01

 

 

 

0.01

 

Q4 2022 - Adjusted Guidance

 

$

113

 

 

$

125

 

 

 

210

 

 

$

0.54

 

 

$

0.60

 

 

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

 

$

264

 

 

$

276

 

 

 

210

 

 

$

1.25

 

 

$

1.31

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO and separation-related costs (1)

 

 

9

 

 

 

9

 

 

 

210

 

 

 

0.05

 

 

 

0.05

 

Fiscal Year 2022 - Adjusted Guidance

 

$

273

 

 

$

285

 

 

 

210

 

 

$

1.30

 

 

$

1.36

 

(1)

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

 

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

Media
Jessica Liddell
ReynoldsPR@icrinc.com
(203) 682-8200

Source: Reynolds Consumer Products Inc.


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