Guidance

 
                           Adjusted     Fiscal 2025   Fiscal 2024 
              Fiscal 2025  EBITDA         Midpoint       Actual 
Cash flow 
 from 
 operating                    Adjusted 
 activities     $70-$90         EBITDA      $387              $284 
Pre-merger 
 cash flow 
 from 
 operating 
 activities                    GLT Pro 
 (7)              90             forma       8                  99 
Additions to                   Foreign 
 PPE (net)       (85)         currency                        (15) 
------------  -----------  -----------  ------------  ------------ 
Post-merger                  Full Year 
 adjusted                   Comparable 
 free cash                    Adjusted 
 flow (1)      $75 - $95        EBITDA      $395              $368 
                           % vs. prior 
                                  year 
                            comparable      7% 
 
 

(1) Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. Comparable basis measures exclude the impact of currency translation effects and acquisitions. These non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. Management believes that adjusted EBITDA and other non-GAAP financial measures are useful to our investors because they allow for a better period-over-period comparison of operating results by removing the impact of items that, in management's view, do not reflect our core operating performance. We define "Post-merger free cash flow" as cash flow from operating activities, less pre-merger free cash flow, less net additions to property, plant, and equipment. We believe free cash flow is useful to an investor in evaluating our liquidity because free cash flow and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company's liquidity. We also believe post-merger free cash flow which is useful to an investor in evaluating our liquidity, as it can assist in assessing a company's ability to fund its growth through its generation of cash because pre-merger cash flow is not indicative of our current structure and operations.

We also use Adjusted EBITDA and comparable basis measures, among other measures, to evaluate management performance and in determining performance-based compensation. Adjusted EBITDA is a measure widely used by investors, securities analysts, and other interested parties in our industry to measure a company's performance. We also believe these measures are useful to an investor in evaluating our performance without regard to revenue and expense recognition, which can vary depending upon accounting methods.

(2) Includes $17 million of transaction compensation as well as restructuring, business optimization and other charges

(3) Consists of estimated parent-allocated charges for the period prior to merger which is required by GAAP as part of the carve-out financial statement process.

(4) Includes a $12 million inventory step-up charge related to GLT merger in current period and other non-cash charges.

(5) Includes stock compensation expense

(6) The prior year comparable basis change excludes the impacts of foreign currency and acquisition/mergers.

(7) Pre-merger cash flow includes cash from operations prior to the merger and cash payments burdened by the transaction.

IR Contact Information

Robert Weilminster

EVP, Investor Relations

IR@magnera.com

(END) Dow Jones Newswires

February 06, 2025 06:30 ET (11:30 GMT)