Quick10K

Sonoco Products

Financials

Price	57.75	EPS	3
Shares	101	P/E	18
MCap	5,843	P/FCF	24
Net Debt	1,064	EBIT	452
TEV	6,908	TEV/EBIT	15
TTM 2019-09-29, in MM, except price, ratios

Filings

10-Q	2020-03-29	Filed 2020-05-06
10-K	2019-12-31	Filed 2020-02-28
10-Q	2019-09-29	Filed 2019-10-30
10-Q	2019-06-30	Filed 2019-07-31
10-Q	2019-03-31	Filed 2019-05-01
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-10-31
10-Q	2018-07-01	Filed 2018-08-01
10-Q	2018-04-01	Filed 2018-05-02
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-10-01	Filed 2017-11-01
10-Q	2017-07-02	Filed 2017-08-02
10-Q	2017-04-02	Filed 2017-05-03
10-K	2016-12-31	Filed 2017-03-01
10-Q	2016-10-02	Filed 2016-11-02
10-Q	2016-07-03	Filed 2016-08-03
10-Q	2016-04-03	Filed 2016-05-06
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-27	Filed 2015-10-28
10-Q	2015-03-29	Filed 2015-04-29
10-K	2014-12-31	Filed 2015-03-02
10-Q	2014-12-31	Filed 2015-08-26
10-Q	2014-09-28	Filed 2014-10-29
10-Q	2014-06-29	Filed 2014-07-29
10-Q	2014-03-30	Filed 2014-04-30
10-K	2013-12-31	Filed 2014-03-03
10-Q	2013-09-29	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-05-01
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-01
10-Q	2012-07-01	Filed 2012-08-01
10-Q	2012-04-01	Filed 2012-05-01
10-K	2011-12-31	Filed 2012-02-29
10-Q	2011-10-02	Filed 2011-11-02
10-Q	2011-07-03	Filed 2011-08-05
10-Q	2011-04-03	Filed 2011-05-03
10-K	2010-12-31	Filed 2011-02-28
10-Q	2010-09-26	Filed 2010-10-25
10-Q	2010-06-27	Filed 2010-07-29
10-Q	2010-03-28	Filed 2010-04-28
10-K	2009-12-31	Filed 2010-02-26

Reports

8-K	2020-04-22	Other Events, Exhibits
8-K	2020-04-16	Earnings, Exhibits
8-K	2020-04-15	Shareholder Vote
8-K	2020-04-03	Other Events, Exhibits
8-K	2020-04-01	Off-BS Arrangement, Exhibits
8-K	2020-03-18	Off-BS Arrangement, Exhibits
8-K	2020-02-13	Earnings, Exhibits
8-K	2020-02-11	Officers
8-K	2020-02-11	Officers, Exhibits
8-K	2020-02-01	Officers, Exhibits
8-K	2019-12-31	M&A, Exhibits
8-K	2019-12-06	Regulation FD, Exhibits
8-K	2019-11-15	Enter Agreement, Other Events, Exhibits
8-K	2019-10-17	Earnings, Exhibits
8-K	2019-10-13	Officers, Exhibits
8-K	2019-08-09	M&A, Exhibits
8-K	2019-07-17	Earnings, Exhibits
8-K	2019-07-17	Leave Agreement, Exhibits
8-K	2019-05-17	Enter Agreement, Other Events, Exhibits
8-K	2019-05-17	Off-BS Arrangement, Other Events, Exhibits
8-K	2019-04-18	Earnings, Exhibits
8-K	2019-04-17	Shareholder Vote
8-K	2019-03-01	Other Events, Exhibits
8-K	2019-02-14	Earnings, Exhibits
8-K	2019-02-13	Officers, Other Events, Exhibits
8-K	2019-02-13	Officers
8-K	2018-12-13	Officers
8-K	2018-12-07	Regulation FD, Exhibits
8-K	2018-12-03	Officers, Other Events, Exhibits
8-K	2018-10-18	Earnings, Exhibits
8-K	2018-10-01	M&A, Exhibits
8-K	2018-10-01	Amend Bylaw, Exhibits
8-K	2018-10-01	Officers, Exhibits
8-K	2018-07-19	Earnings, Exhibits
8-K	2018-05-25	Enter Agreement, Other Events, Exhibits
8-K	2018-04-19	Other Events
8-K	2018-04-19	Earnings, Exhibits
8-K	2018-04-18	Shareholder Vote
8-K	2018-04-12	Off-BS Arrangement, Regulation FD, Exhibits
8-K	2018-04-02	Officers, Other Events, Exhibits
8-K	2018-03-21	Enter Agreement, Other Events, Exhibits
8-K	2018-02-15	Earnings, Exhibits
8-K	2018-02-14	Officers
8-K	2018-02-07	Officers

Sonoco Products Earnings 2020-03-29

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

son-20200329

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-11261

SONOCO PRODUCTS COMPANY


Incorporated under the laws of South Carolina						I.R.S. Employer Identification No. 57-0248420

1 N. Second St.

Hartsville, South Carolina 29550

Telephone: 843/383-7000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
No par value common stock	SON	New York Stock Exchange, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock at April 24, 2020:

Common stock, no par value: 100,329,316

SONOCO PRODUCTS COMPANY

INDEX


PART I. FINANCIAL INFORMATION			3

Item 1.	Financial Statements:	3

	Condensed Consolidated Balance Sheets - March 29 , 20 20 (unaudited) and December 31, 201 9 (unaudited)	3

	Condensed Consolidated Statements of Income – Three Months Ended March 29, 20 20 (unaudited) and March 31, 2019 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive (Loss)/Income – Three Months Ended March 29 , 20 20 (unaudited) and March 31 , 201 9 (unaudited)	5

	Condensed Consolidated Statements of Changes in Total Equity – Three Months Ended March 29, 20 20 (unaudited) and March 31 , 201 9 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows – Three Months Ended March 29, 20 20 (unaudited) and March 31 , 201 9 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

	Report of Independent Registered Public Accounting Firm	30

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	45

Item 4.	Controls and Procedures.	45

PART II. OTHER INFORMATION			45

Item 1.	Legal Proceedings.	45

Item 1A.	Risk Factors.	46

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	47

Item 6.	Exhibits.	47

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars and shares in thousands)


	March 29, 2020		December 31, 2019*
Assets
Current Assets
Cash and cash equivalents	$	123,335	$	145,283
Trade accounts receivable, net of allowances	737,760		698,149
Other receivables	98,648		113,754
Inventories, net:
Finished and in process	181,785		172,223
Materials and supplies	318,311		331,585
Prepaid expenses	53,989		60,202
	1,513,828		1,521,196
Property, Plant and Equipment, Net	1,236,827		1,286,842
Goodwill	1,412,055		1,429,346
Other Intangible Assets, Net	372,724		388,292
Deferred Income Taxes	41,500		46,502
Right of Use Asset-Operating Leases	286,533		298,393
Other Assets	148,670		155,718
Total Assets	$	5,012,137	$	5,126,289
Liabilities and Equity
Current Liabilities
Payable to suppliers	$	538,348	$	537,764
Accrued expenses and other	355,247		367,114
Notes payable and current portion of long-term debt	452,827		488,234
Accrued taxes	17,382		11,380
	1,363,804		1,404,492
Long-term Debt, Net of Current Portion	1,187,904		1,193,135
Noncurrent Operating Lease Liabilities	242,381		253,992
Pension and Other Postretirement Benefits	304,361		304,798
Deferred Income Taxes	81,055		76,206
Other Liabilities	77,191		77,961


Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares 100,329 and 100,198 shares issued and outstanding at March 29, 2020 and December 31, 2019, respectively	7,175		7,175
Capital in excess of stated value	307,813		310,778
Accumulated other comprehensive loss	(909,153)		(816,803)
Retained earnings	2,338,429		2,301,532
Total Sonoco Shareholders’ Equity	1,744,264		1,802,682
Noncontrolling Interests	11,177		13,023
Total Equity	1,755,441		1,815,705
Total Liabilities and Equity	$	5,012,137	$	5,126,289


*			The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

See accompanying Notes to Condensed Consolidated Financial Statements

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars and shares in thousands except per share data)


	Three Months Ended
	March 29, 2020		March 31, 2019
Net sales	$	1,303,296	$	1,351,705
Cost of sales	1,036,706		1,081,584
Gross profit	266,590		270,121
Selling, general and administrative expenses	123,888		142,561
Restructuring/Asset impairment charges	12,599		10,672
Operating profit	130,103		116,888
Non-operating pension costs	7,579		6,041
Interest expense	16,529		16,032
Interest income	484		647
Income before income taxes	106,479		95,462
Provision for income taxes	26,756		22,624
Income before equity in earnings of affiliates	79,723		72,838
Equity in earnings of affiliates, net of tax	513		930
Net income	80,236		73,768
Net loss/(income) attributable to noncontrolling interests	209		(105)
Net income attributable to Sonoco	$	80,445	$	73,663
Weighted average common shares outstanding:
Basic	100,855		100,640
Diluted	101,071		101,072
Per common share:
Net income attributable to Sonoco:
Basic	$	0.80	$	0.73
Diluted	$	0.80	$	0.73

See accompanying Notes to Condensed Consolidated Financial Statements

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE (LOSS)/INCOME (unaudited)

(Dollars in thousands)


	Three Months Ended
	March 29, 2020		March 31, 2019
Net income	$	80,236	$	73,768
Other comprehensive income/(loss):
Foreign currency translation adjustments	(95,212)		(2,972)
Changes in defined benefit plans, net of tax	5,780		7,156
Changes in derivative financial instruments, net of tax	(4,555)		1,864
Other comprehensive (loss)/income	$	(93,987)	$	6,048
Comprehensive (loss)/income	(13,751)		79,816
Net loss/(income) attributable to noncontrolling interests	209		(105)
Other comprehensive loss/(income) attributable to noncontrolling interests	1,637		(120)
Comprehensive (loss)/income attributable to Sonoco	$	(11,905)	$	79,591

See accompanying Notes to Condensed Consolidated Financial Statements

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN TOTAL EQUITY (unaudited)

(Dollars in thousands)


	Total Equity		Common Shares						Capital in Excess of Stated Value			Accumulated Other Comprehensive Loss			Retained Earnings			Noncontrolling Interests
						Outstanding	Amount
December 31, 2018	$	1,772,278	99,829	$	7,175		$	304,709		$	(740,913)		$	2,188,115		$	13,192
Net income	73,768												73,663			105
Other comprehensive income/(loss):
Translation loss	(2,972)									(2,852)						(120)
Defined benefit plan adjustment, net of tax	7,156									7,156
Derivative financial instruments, net of tax	1,864									1,864
Other comprehensive income/(loss)	$	6,048								$	6,168					$	(120)
Dividends	(41,534)												(41,534)
Dividends paid to noncontrolling interests	(214)															(214)
Issuance of stock awards	399		340				399
Shares repurchased	(7,395)		(133)				(7,395)
Stock-based compensation	4,560						4,560
Impact of new accounting pronouncements	(6,771)												(6,771)
March 31, 2019	$	1,801,139	100,036	$	7,175		$	302,273		$	(734,745)		$	2,213,473		$	12,963


	Total Equity		Common Shares						Capital in Excess of Stated Value			Accumulated Other Comprehensive Loss			Retained Earnings			Noncontrolling Interests
						Outstanding	Amount
December 31, 2019	$	1,815,705	100,198	$	7,175		$	310,778		$	(816,803)		$	2,301,532		$	13,023
Net income/(loss)	80,236												80,445			(209)
Other comprehensive income/(loss):
Translation loss	(95,212)									(93,575)						(1,637)
Defined benefit plan adjustment, net of tax	5,780									5,780
Derivative financial instruments, net of tax	(4,555)									(4,555)
Other comprehensive loss	$	(93,987)								$	(92,350)					$	(1,637)
Dividends	(43,339)												(43,339)
Dividends paid to noncontrolling interests	—
Issuance of stock awards	376		196				376
Shares repurchased	(3,938)		(65)				(3,938)
Stock-based compensation	597						597
Impact of new accounting pronouncements	(209)												(209)
March 29, 2020	$	1,755,441	100,329	$	7,175		$	307,813		$	(909,153)		$	2,338,429		$	11,177

See accompanying Notes to Condensed Consolidated Financial Statements

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Dollars in thousands)


	Three Months Ended
	March 29, 2020		March 31, 2019
Cash Flows from Operating Activities:
Net income	$	80,236	$	73,768
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment	3,106		1,400
Depreciation, depletion and amortization	60,824		58,614

Share-based compensation expense	597		4,560
Equity in earnings of affiliates	(513)		(930)
Cash dividends from affiliated companies	350		525
Net (gain)/loss on disposition of assets	(2,520)		2,160
Pension and postretirement plan expense	14,722		7,056
Pension and postretirement plan contributions	(24,812)		(17,353)
Net increase/(decrease) in deferred taxes	6,933		(1,092)
Change in assets and liabilities, net of effects from acquisitions and foreign currency adjustments:
Trade accounts receivable	(64,868)		(40,036)
Inventories	(12,185)		(20,631)
Payable to suppliers	6,820		14,763
Prepaid expenses	(2,853)		(2,637)
Accrued expenses	16,338		(16,865)
Income taxes payable and other income tax items	4,687		11,400

Other assets and liabilities	851		17,617
Net cash provided by operating activities	87,713		92,319
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(33,851)		(42,157)
Cost of acquisitions, net of cash acquired	(3,973)		(455)
Proceeds from the sale of assets	3,188		493
Investment in affiliates and other, net	462		1,150
Net cash used in investing activities	(34,174)		(40,969)
Cash Flows from Financing Activities:
Proceeds from issuance of debt	156,237		15,566
Principal repayment of debt	(7,833)		(34,651)
Net change in commercial paper	(185,000)		31,000
Net increase/(decrease) in outstanding checks	6,594		(10,993)
Proceeds from cross-currency swap	14,480		—

Cash dividends	(43,202)		(41,136)
Dividends paid to noncontrolling interests	—		(214)
Shares repurchased	(3,938)		(7,395)

Net cash used in financing activities	(62,662)		(47,823)
Effects of Exchange Rate Changes on Cash	(12,825)		412
Net (Decrease)/Increase in Cash and Cash Equivalents	(21,948)		3,939
Cash and cash equivalents at beginning of period	145,283		120,389
Cash and cash equivalents at end of period	$	123,335	$	124,328

See accompanying Notes to Condensed Consolidated Financial Statements

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

(unaudited)

Note 1: Basis of Interim Presentation

In the opinion of the management of Sonoco Products Company (the “Company” or “Sonoco”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to stat

EX-15	ex15q12020.htm
EX-31	ex31q12020.htm
EX-32	ex32q12020.htm

SON 10Q Quarterly Report

Sonoco Products Earnings 2020-03-29