Sealed Air Corporation (NYSE:SEE) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET

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Sealed Air Corporation (NYSE:SEE) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen and welcome to the Q4 Earnings Conference Call. Currently at this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) Also as a reminder, this conference call is being recorded.

At this time, I'd like to turn the call over to your host to Lori Chaitman, Vice President, Investor Relations. Please go ahead.

Executive
Lori C. Chaitman

Thank you and good morning everyone. Before we begin our call today, I would like to note that we have provided a slide presentation to help guide our discussion. This presentation can be found on today's webcast and can be downloaded from our IR website at sealedair.com.

I would like to remind you that statements made during this call stating management's outlook or predictions for the future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the information in the section entitled Forward-Looking Statements in our earnings release and slide presentation, which applies to this call. Additionally, our future performance may differ due to a number of factors. Many of these factors are listed in our most recent annual report on Form 10-K and as revised and updated on our quarterly reports on Form 10-Q and current reports on Form 8-K, which you can also find on our website or on the SEC's website at sec.gov.

We also discuss financial measures that do not conform to US GAAP. You may find important information on our use of these measures and their reconciliation to US GAAP in our earnings release. Included in the appendix of today's presentation, you will find US GAAP financial results that correspond to some of the non-US GAAP measures we reference throughout the presentation.

Now I'd like to turn the call over to Ted Doheny, our President and CEO, Ted?

Executive
Ted Doheny

Thank you, Lori. Thank you for joining us for our fourth quarter and year-end conference call. I'm going to begin with a recap of our 2018 results. I will then go into more detail about our progress on Reinvent SEE. I'll also highlight our commitment to lead the packaging industry to more sustainable future and our recent commitment to join the Alliance to End Plastic Waste. Bill will then expand on the financial results for the quarter and the year. I'll provide our outlook for 2019, then we'll conduct a question-and-answer session.

As we headed into year-end, we focused on executing stranded cost savings initiatives and implementing our new Reinvent SEE vision, which we announced in December. These efforts enabled us to deliver on our 20% operating leverage commitment for 2018 and even higher leverage in the fourth quarter at 31% despite currency headwinds and higher input cost. For the full-year, adjusted EBITDA increased 7% on sales growth of 6%. Higher adjusted EBITDA, a lower tax rate and share repurchases resulted in earnings per share of $2.50, an increase of 38% over