DELAWARE, Ohio, Aug. 28,
2019 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a
world leader in industrial packaging products and services, today
announced third quarter 2019 results.
Third Quarter Highlights include (all results compared to the
third quarter of 2018 unless otherwise noted):
- Net sales increased by $240.5
million to $1,252.6
million.
- Gross profit increased by $62.3
million to $279.4
million.
- Net income of $62.7 million or
$1.06 per diluted Class A share
decreased compared to net income of $67.7
million or $1.15 per diluted
Class A share. Net income, excluding the impact of
adjustments(1), of $74.7
million or $1.26 per diluted
Class A share increased compared to net income, excluding the
impact of adjustments, of $70.9
million or $1.20 per diluted
Class A share. Adjusted EBITDA(2) increased by
$57.5 million to $203.8 million.
- Net cash provided by operating activities increased by
$90.2 million to $141.5 million. Adjusted free cash
flow(3) increased by $26.0
million to $107.1
million.
"Greif produced solid third quarter 2019 results despite ongoing
market softness and a weakening industrial economy," said
Pete Watson, Greif's President and
Chief Executive Officer. "Third quarter adjusted EBITDA rose by
roughly 39.0 percent versus the prior year quarter, while Class A
earnings per share, excluding the impact of adjustments, increased
by 5.0 percent."
"Our newly acquired Caraustar operations performed better than
our original assumptions. However, we faced weaker market demand in
our containerboard operations and in certain segments of our Rigid
Industrial Packaging business. In light of external headwinds, we
are implementing additional optimization measures in parts of our
portfolio to lower costs and better navigate challenging market
conditions. We remain laser focused on those areas within our
control to more profitability serve our customers. I remain highly
confident in our long term plan to drive more sustainable free cash
flow, delever our balance sheet, and grow our profits."
|
|
(1)
|
A summary of all
adjustments that are excluded from net income before adjustments
and from earnings per diluted Class A share before adjustments are
set forth in the Selected Financial Highlights table following the
Company Outlook in this release.
|
(2)
|
Adjusted EBITDA is
defined as net income, plus interest expense, net, including debt
extinguishment charges, plus income tax expense, plus depreciation,
depletion and amortization expense, plus restructuring charges,
plus acquisition-related costs, plus non-cash impairment charges,
plus non-cash pension settlement charges, less (gain) loss on
disposal of properties, plants, equipment and businesses,
net.
|
(3)
|
Adjusted free cash
flow is defined as net cash provided by operating activities, plus
cash paid for acquisition-related costs, plus cash paid for debt
issuance costs, plus an additional one-time $65.0 million
contribution made by the Company to its U.S. defined benefit plan
during the third quarter of 2018, less cash paid for purchases of
properties, plants and equipment.
|
Note: A reconciliation of the differences between all non-GAAP
financial measures used in this release with the most directly
comparable GAAP financial measures is included in the financial
schedules that are a part of this release. These non-GAAP financial
measures are intended to supplement and should be read together
with our financial results. They should not be considered an
alternative or substitute for, and should not be considered
superior to, our reported financial results. Accordingly, users of
this financial information should not place undue reliance on these
non-GAAP financial measures.
Customer Service
The Company's consolidated CSI(4) score improved by
roughly two percent versus the prior year quarter and was flat
sequentially to second quarter fiscal 2019. Greif's objective is
that each business segment delivers a consistent CSI score of 95.0
or better. CSI for the Rigid Industrial Packaging & Services
segment and Flexible Products & Services segment were roughly
flat to the prior year quarter at 90.2 and 93.5, respectively. CSI
for the Paper Packaging & Services segment was 89.0, or roughly
seven percent lower than the prior year quarter. The Paper
Packaging & Services segment's CSI results included the newly
acquired Caraustar operations for the first time. Excluding the
Caraustar operations, the Paper Packaging & Services segment's
CSI for the fiscal third quarter 2019 would have been 95.5.
Segment Results (all results compared to the third quarter of
2018 unless otherwise noted)
Net sales are impacted mainly by the volume of primary
products(5) sold, selling prices, product mix and the
impact of changes in foreign currencies against the U.S. Dollar.
The table below shows the percentage impact of each of these items
on net sales for our primary products for the third quarter of 2019
as compared to the prior year quarter for the business segments
with manufacturing operations. Net sales from Caraustar's primary
products are not included in the table below, but will be included
in the Paper Packaging & Services segment starting in the
second quarter of fiscal 2020:
Net Sales Impact -
Primary Products
|
Rigid Industrial
Packaging &
Services
|
|
Paper Packaging &
Services
|
|
Flexible Products
&
Services
|
|
%
|
|
%
|
|
%
|
Currency
Translation
|
(3.2)
|
%
|
|
—
|
|
|
(4.5)
|
%
|
Volume
|
(5.7)
|
%
|
|
(8.8)
|
%
|
|
(6.5)
|
%
|
Selling Prices and
Product Mix
|
2.0
|
%
|
|
(2.5)
|
%
|
|
3.1
|
%
|
Total Impact of
Primary Products
|
(6.9)
|
%
|
|
(11.3)
|
%
|
|
(7.9)
|
%
|
Rigid Industrial Packaging & Services
Net sales decreased by $45.5
million to $642.1 million. Net
sales excluding foreign currency translation decreased by
$29.3 million due primarily to
continued softness in Western/Central
Europe, APAC and the U.S., partially offset by a 2.0
percent increase in selling prices on our primary products as
a result of strategic pricing decisions.
Gross profit decreased by $12.3
million to $126.5 million. The
decrease in gross profit was primarily due to the same factors that
impacted net sales. The prior year period included a one-time
freight expense adjustment that positively impacted gross profit by
$4.6 million.
Operating profit decreased by $7.7
million to $54.3 million
primarily due to the same factors that impacted net sales,
partially offset by a decrease in the segment's SG&A expense.
Adjusted EBITDA remained flat to prior year at $82.8 million.
Paper Packaging & Services
Net sales increased by $294.4
million to $530.0 million. The
increase in sales was primarily due to $320.4 million of contribution from the acquired
Caraustar operations, partially offset by lower published
containerboard prices and decreased volumes in our legacy
operations.
Gross profit increased by $75.2
million to $134.7 million. The
increase in gross profit was primarily due to $81.6 million of contribution from the acquired
Caraustar operations, partially offset by the same factors that
impacted net sales.
Operating profit increased by $19.0
million to $63.1 million.
Adjusted EBITDA increased by $57.9
million to $111.0 million
primarily due to $65.4 million of
contribution from the acquired Caraustar operations, partially
offset by the same factors that impacted net sales.
Flexible Products & Services
Net sales decreased by $8.1
million to $74.5 million. Net
sales excluding foreign currency translation decreased by
$4.9 million due primarily to
continued softness in Western
Europe.
Gross profit decreased by $0.7
million to $16.0 million
primarily due to the same factors that impacted net sales,
partially offset by favorable raw material costs.
Operating profit decreased by $0.8
million to $5.0 million.
Adjusted EBITDA decreased by $0.6
million to $7.2 million. The
decrease in adjusted EBITDA was primarily due to the same factors
that impacted gross profit.
Land Management
Net sales increased by $0.1
million to $6.0 million.
Operating profit increased by $1.1
million to $3.2 million.
Adjusted EBITDA increased by $0.2
million to $2.8 million.
Tax Summary
During the third quarter, the Company recorded an income tax
rate of 29.1 percent and a tax rate excluding the impact of
adjustments of 27.7 percent. The Company recorded a one-time
$3.1 million recycling tax credit
during the third quarter that favorably impacted the tax rate. As
previously disclosed, the application of FIN 18 may cause
fluctuations in our quarterly effective tax rates. For fiscal 2019,
the Company expects its tax rate to range between 29-33 percent and
its tax rate excluding adjustments to range between 28-32
percent.
Dividend Summary
On August 27, 2019, the Board of
Directors declared quarterly cash dividends of $0.44 per share of Class A Common Stock and
$0.66 per share of Class B Common
Stock. Dividends are payable on October 1,
2019, to stockholders of record at the close of business on
September 17, 2019.
Company Outlook
(in millions,
except per share amounts)
|
Fiscal 2019
Outlook
Reported at Q2
|
Fiscal 2019
Outlook
Reported at Q3
|
Class A earnings per
share before special items
|
$3.70 -
$4.00
|
$3.70 -
$4.00
|
Adjusted free cash
flow
|
$230 -
$250
|
$230 -
$250
|
Note: 2019 Class A earnings per share and tax rate guidance on a
GAAP basis are not provided in this release due to the potential
for one or more of the following, the timing and magnitude of which
we are unable to reliably forecast: gains or losses on the disposal
of businesses, timberland or properties, plants and equipment, net;
non-cash asset impairment charges due to unanticipated changes in
the business; restructuring-related activities; non-cash pension
settlement charges; or acquisition costs, and the income tax
effects of these items and other income tax-related events. No
reconciliation of the fiscal year 2019 Class A earnings per share
before adjustments guidance or tax rate excluding the impact of
adjustments guidance, both non-GAAP financial measures which
exclude gains and losses on the disposal of businesses, timberland
and properties, plants and equipment, non-cash pension settlement
charges, acquisition costs, restructuring and impairment charges,
is included in this release because, due to the high variability
and difficulty in making accurate forecasts and projections of some
of the excluded information, together with some of the excluded
information not being ascertainable or accessible, we are unable to
quantify certain amounts that would be required to be included in
the most directly comparable GAAP financial measure without
unreasonable efforts. A reconciliation of 2019 adjusted free cash
flow guidance to forecasted net cash provided by operating
activities, the most directly comparable GAAP financial measure, is
included in this release.
(4)
|
Customer satisfaction
index (CSI) tracks a variety of internal metrics designed to
enhance the customer experience in dealing with Greif.
|
(5)
|
Primary products are
manufactured steel, plastic and fibre drums; intermediate bulk
containers; linerboard, medium, corrugated sheets and corrugated
containers; and 1&2 loop and 4 loop flexible intermediate bulk
containers.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
SELECTED FINANCIAL
HIGHLIGHTS
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in millions,
except for per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Selected Financial
Highlights
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,252.6
|
|
|
$
|
1,012.1
|
|
|
$
|
3,362.9
|
|
|
$
|
2,886.1
|
|
Gross
profit
|
279.4
|
|
|
217.1
|
|
|
700.9
|
|
|
584.1
|
|
Gross profit
margin
|
22.3
|
%
|
|
21.5
|
%
|
|
20.8
|
%
|
|
20.2
|
%
|
Operating
profit
|
125.6
|
|
|
114.0
|
|
|
283.4
|
|
|
267.2
|
|
EBITDA(6)
|
188.9
|
|
|
142.2
|
|
|
431.6
|
|
|
350.1
|
|
Adjusted
EBITDA(7)
|
203.8
|
|
|
146.3
|
|
|
472.1
|
|
|
361.7
|
|
Net cash provided by
operating activities
|
141.5
|
|
|
51.3
|
|
|
194.1
|
|
|
55.8
|
|
Adjusted free cash
flow(8)
|
107.1
|
|
|
81.1
|
|
|
117.6
|
|
|
29.5
|
|
Net income
attributable to Greif, Inc.
|
62.7
|
|
|
67.7
|
|
|
106.0
|
|
|
169.3
|
|
Diluted Class A
earnings per share attributable to Greif, Inc.
|
$
|
1.06
|
|
|
$
|
1.15
|
|
|
$
|
1.80
|
|
|
$
|
2.88
|
|
Adjusted Diluted
Class A earnings per share attributable to Greif,
Inc.
|
$
|
1.26
|
|
|
$
|
1.20
|
|
|
$
|
2.72
|
|
|
$
|
2.45
|
|
Adjustments
|
|
|
|
|
|
|
|
Restructuring
charges
|
$
|
9.1
|
|
|
$
|
3.7
|
|
|
$
|
20.3
|
|
|
$
|
13.8
|
|
Acquisition-related
costs
|
5.8
|
|
|
0.5
|
|
|
22.2
|
|
|
0.7
|
|
Debt extinguishment
charges
|
0.1
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Non-cash asset
impairment charges
|
—
|
|
|
0.8
|
|
|
2.1
|
|
|
4.1
|
|
Non-cash pension
settlement charge
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Gain on disposal of
properties, plants and equipment and businesses, net
|
—
|
|
|
(1.3)
|
|
|
(4.1)
|
|
|
(7.4)
|
|
Tax net expense
(benefit) resulting from the Tax Reform Act
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.4)
|
|
Total
Adjustments
|
$
|
15.0
|
|
|
$
|
4.1
|
|
|
$
|
62.5
|
|
|
$
|
(21.8)
|
|
|
|
|
|
|
|
|
|
|
July 31,
2019
|
|
October 31,
2018
|
|
July 31,
2018
|
|
October 31,
2017
|
Operating working
capital(9)
|
$
|
675.3
|
|
|
$
|
342.4
|
|
|
$
|
394.0
|
|
|
$
|
327.3
|
|
(6)EBITDA
is defined as net income, plus interest expense, net, including
debt extinguishment charges, plus income tax expense, plus
depreciation, depletion and amortization.
|
(7)Adjusted EBITDA is defined as net
income, plus interest expense, net, including debt extinguishment
charges, plus income tax expense, plus depreciation, depletion and
amortization expense, plus restructuring charges, plus
acquisition-related costs, plus non-cash impairment charges, plus
non-cash pension settlement charges, less (gain) loss on disposal
of properties, plants, equipment and businesses, net.
|
(8)Adjusted free cash flow is defined as
net cash provided by operating activities, plus cash paid for
acquisition-related costs, plus cash paid for debt issuance costs,
less cash paid for purchases of properties, plants and
equipment.
|
(9)Operating working capital is defined as
trade accounts receivable plus inventories less accounts
payable.
|
Conference Call
The Company will host a conference call to discuss the third
quarter of 2019 results on August 29,
2019, at 8:30 a.m. Eastern
Time (ET). To participate, domestic callers should call
833-231-8265. The Greif ID is 5799875. The number for international
callers is +1-647-689-4110. Phone lines will open at 8:00 a.m. ET. The conference call will also be
available through a live webcast, including slides, which can be
accessed at http://investor.greif.com by clicking on the
Events and Presentations tab and searching under the events
calendar. A replay of the conference call will be available on the
Company's website approximately two hours following the call.
About Greif
Greif is a global leader in industrial packaging products and
services and is pursuing its vision: in industrial packaging, be
the best performing customer service company in the world. The
Company produces steel, plastic and fibre drums, intermediate bulk
containers, reconditioned containers, flexible products,
containerboard, uncoated recycled paperboard, coated recycled
paperboard, tubes and cores and a diverse mix of specialty
products. The Company also manufactures packaging accessories and
provides filling, packaging and other services for a wide range of
industries. In addition, Greif manages timber properties in the
southeastern United States. The
Company is strategically positioned in over 40 countries to serve
global as well as regional customers. Additional information is on
the Company's website at www.greif.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words "may," "will," "expect," "intend," "estimate,"
"anticipate," "aspiration," "objective," "project," "believe,"
"continue," "on track" or "target" or the negative thereof and
similar expressions, among others, identify forward-looking
statements. All forward-looking statements are based on
assumptions, expectations and other information currently available
to management. Such forward-looking statements are subject to
certain risks and uncertainties that could cause the Company's
actual results to differ materially from those forecasted,
projected or anticipated, whether expressed or implied. The
most significant of these risks and uncertainties are described in
Part I of the Company's Annual Report on Form 10-K for the fiscal
year ended October 31, 2018. The Company undertakes no
obligation to update or revise any forward-looking statements.
Although the Company believes that the expectations reflected in
forward-looking statements have a reasonable basis, the Company can
give no assurance that these expectations will prove to be correct.
Forward-looking statements are subject to risks and uncertainties
that could cause the Company's actual results to differ materially
from those forecasted, projected or anticipated, whether expressed
in or implied by the statements. Such risks and uncertainties that
might cause a difference include, but are not limited to, the
following: (i) historically, our business has been sensitive to
changes in general economic or business conditions, (ii) we may not
successfully implement our business strategies, including achieving
our transformation and growth objectives, (iii) our operations
subject us to currency exchange and political risks that could
adversely affect our results of operations, (iv) the current and
future challenging global economy and disruption and volatility of
the financial and credit markets may adversely affect our business,
(v) the continuing consolidation of our customer base and suppliers
may intensify pricing pressure, (vi) we operate in highly
competitive industries, (vii) our business is sensitive to changes
in industry demands, (viii) raw material and energy price
fluctuations and shortages may adversely impact our manufacturing
operations and costs, (ix) changes in U.S. trade policies could
impact the cost of imported goods into the U.S., which may
materially impact our revenues or
increase our operating costs, (x) the results of the United Kingdom's referendum on withdrawal from
the European Union may have a negative effect on global economic
conditions, financial markets and our business, (xi) geopolitical
conditions, including direct or indirect acts of war or terrorism,
could have a material adverse effect on our operations and
financial results, (xii) we may encounter difficulties arising from
acquisitions, including the inability to realize projected
synergies (xiii) in connection with acquisitions or divestitures,
we may become subject to liabilities (xiv) we may incur additional
restructuring costs and there is no guarantee that our efforts to
reduce costs will be successful, (xv) we could be subject to
changes to our tax rates, the
adoption of new U.S. or foreign tax legislation or exposure to
additional tax liabilities, (xvi) full realization of our deferred
tax assets may be affected by a number of factors, (xvii) several
operations are conducted by joint ventures that we cannot operate
solely for our benefit, (xviii) certain of the agreements that
govern our joint ventures provide our partners with put or call
options, (xix) our ability to attract, develop and retain talented
and qualified employees, managers and executives is critical to our
success, (xx) our business may be adversely impacted by work
stoppages and other labor relations matters, (xxi) we may not
successfully identify illegal immigrants in our workforce, (xxii)
our pension and postretirement plans are underfunded and will
require future cash contributions and our required future cash
contributions could be higher than we expect, each of which could
have a material adverse effect on our financial condition and
liquidity, (xxiii) we may be subject to losses that might not be
covered in whole or in part by existing insurance reserves or
insurance coverage, (xxiv) our business depends on the
uninterrupted operations of our facilities, systems and business
functions, including our information technology and other business
systems, (xxv) a security breach of customer, employee, supplier or
Company information may have a material adverse effect on our
business, financial condition and results of operations, (xxvi)
legislation/regulation related to environmental and health and
safety matters and corporate social responsibility could negatively
impact our operations and financial performance, (xxvii) product
liability claims and other legal proceedings could adversely affect
our operations and financial performance, (xxviii) we may incur
fines or penalties, damage to our reputation or other adverse
consequences if our employees, agents or business partners violate,
or are alleged to have violated, anti-bribery, competition or other
laws, (xxix) changing climate, climate change regulations and
greenhouse gas effects may adversely affect our operations and
financial performance, (xxx) the frequency and volume of our timber
and timberland sales will impact our financial performance, (xxxi)
changes in U.S. generally accepted accounting principles (U.S.
GAAP) and SEC rules and regulations could materially impact our
reported results, (xxxii) if the Company fails to maintain an
effective system of internal control, the Company may not be able
to accurately report financial results or prevent fraud, and
(xxxiii) the Company has a significant amount of goodwill and
long-lived assets which, if impaired in the future, would adversely
impact our results of operations. The risks described above are not
all-inclusive, and given these and other possible risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. For a
detailed discussion of the most significant risks and uncertainties
that could cause our actual results to differ materially from those
forecasted, projected or anticipated, see "Risk Factors" in Part I,
Item 1A of our most recently filed Form 10-K and our other filings
with the Securities and Exchange Commission. All forward-looking
statements made in this news release are expressly qualified in
their entirety by reference to such risk factors. Except to the
limited extent required by applicable law, we undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact:
Matt Eichmann
740-549-6067
matt.eichmann@greif.com
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in millions,
except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
1,252.6
|
|
|
$
|
1,012.1
|
|
|
$
|
3,362.9
|
|
|
$
|
2,886.1
|
|
Cost of products
sold
|
973.2
|
|
|
795.0
|
|
|
2,662.0
|
|
|
2,302.0
|
|
Gross
profit
|
279.4
|
|
|
217.1
|
|
|
700.9
|
|
|
584.1
|
|
Selling, general and
administrative expenses
|
138.9
|
|
|
99.4
|
|
|
377.0
|
|
|
305.7
|
|
Restructuring
charges
|
9.1
|
|
|
3.7
|
|
|
20.3
|
|
|
13.8
|
|
Acquisition-related
costs
|
5.8
|
|
|
0.5
|
|
|
22.2
|
|
|
0.7
|
|
Non-cash asset
impairment charges
|
—
|
|
|
0.8
|
|
|
2.1
|
|
|
4.1
|
|
Gain on disposal of
properties, plants and equipment, net
|
(1.3)
|
|
|
(1.4)
|
|
|
(7.1)
|
|
|
(7.5)
|
|
Loss on disposal of
businesses, net
|
1.3
|
|
|
0.1
|
|
|
3.0
|
|
|
0.1
|
|
Operating
profit
|
125.6
|
|
|
114.0
|
|
|
283.4
|
|
|
267.2
|
|
Interest expense,
net
|
34.5
|
|
|
12.1
|
|
|
80.1
|
|
|
38.4
|
|
Non-cash pension
settlement charge
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Debt extinguishment
charges
|
0.1
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Other (income)
expense, net
|
(1.1)
|
|
|
4.8
|
|
|
1.0
|
|
|
15.0
|
|
Income before income
tax expense and equity earnings of unconsolidated affiliates,
net
|
92.1
|
|
|
96.7
|
|
|
180.3
|
|
|
213.4
|
|
Income tax
expense
|
26.8
|
|
|
25.7
|
|
|
58.3
|
|
|
31.2
|
|
Equity earnings of
unconsolidated affiliates, net of tax
|
(2.2)
|
|
|
(1.0)
|
|
|
(2.4)
|
|
|
(1.8)
|
|
Net income
|
67.5
|
|
|
72.0
|
|
|
124.4
|
|
|
184.0
|
|
Net income
attributable to noncontrolling interests
|
(4.8)
|
|
|
(4.3)
|
|
|
(18.4)
|
|
|
(14.7)
|
|
Net income
attributable to Greif, Inc.
|
$
|
62.7
|
|
|
$
|
67.7
|
|
|
$
|
106.0
|
|
|
$
|
169.3
|
|
Basic earnings per
share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
1.06
|
|
|
$
|
1.15
|
|
|
$
|
1.80
|
|
|
$
|
2.88
|
|
Class B common
stock
|
$
|
1.59
|
|
|
$
|
1.72
|
|
|
$
|
2.68
|
|
|
$
|
4.31
|
|
Diluted earnings
per share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
1.06
|
|
|
$
|
1.15
|
|
|
$
|
1.80
|
|
|
$
|
2.88
|
|
Class B common
stock
|
$
|
1.59
|
|
|
$
|
1.72
|
|
|
$
|
2.68
|
|
|
$
|
4.31
|
|
Shares used to
calculate basic earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
26.3
|
|
|
25.9
|
|
|
26.2
|
|
|
25.9
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
Shares used to
calculate diluted earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
26.3
|
|
|
25.9
|
|
|
26.2
|
|
|
25.9
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
UNAUDITED
|
|
|
|
|
(in
millions)
|
July 31,
2019
|
|
October 31,
2018
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
75.8
|
|
|
$
|
94.2
|
|
Trade accounts
receivable
|
720.3
|
|
|
456.7
|
|
Inventories
|
413.5
|
|
|
289.5
|
|
Other current
assets
|
132.2
|
|
|
136.3
|
|
|
1,341.8
|
|
|
976.7
|
|
LONG-TERM
ASSETS
|
|
|
|
Goodwill
|
1,561.9
|
|
|
776.0
|
|
Intangible
assets
|
794.3
|
|
|
80.6
|
|
Assets held by
special purpose entities
|
50.9
|
|
|
50.9
|
|
Other long-term
assets
|
125.5
|
|
|
118.7
|
|
|
2,532.6
|
|
|
1,026.2
|
|
PROPERTIES, PLANTS
AND EQUIPMENT
|
1,678.0
|
|
|
1,191.9
|
|
|
$
|
5,552.4
|
|
|
$
|
3,194.8
|
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
|
458.5
|
|
|
$
|
403.8
|
|
Short-term
borrowings
|
8.8
|
|
|
7.3
|
|
Current portion of
long-term debt
|
83.7
|
|
|
18.8
|
|
Other current
liabilities
|
286.0
|
|
|
240.3
|
|
|
837.0
|
|
|
670.2
|
|
LONG-TERM
LIABILITIES
|
|
|
|
Long-term
debt
|
2,786.0
|
|
|
884.1
|
|
Liabilities held by
special purpose entities
|
43.3
|
|
|
43.3
|
|
Other long-term
liabilities
|
688.0
|
|
|
407.5
|
|
|
3,517.3
|
|
|
1,334.9
|
|
REDEEMABLE
NONCONTROLLING INTERESTS
|
22.5
|
|
|
35.5
|
|
EQUITY
|
|
|
|
Total Greif, Inc.
equity
|
1,120.6
|
|
|
1,107.8
|
|
Noncontrolling
interests
|
55.0
|
|
|
46.4
|
|
|
1,175.6
|
|
|
1,154.2
|
|
|
$
|
5,552.4
|
|
|
$
|
3,194.8
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
$
|
67.5
|
|
|
$
|
72.0
|
|
|
$
|
124.4
|
|
|
$
|
184.0
|
|
Depreciation,
depletion and amortization
|
60.0
|
|
|
32.4
|
|
|
146.8
|
|
|
96.5
|
|
Asset
impairments
|
—
|
|
|
0.8
|
|
|
2.1
|
|
|
4.1
|
|
Pension settlement
loss
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Other non-cash
adjustments to net income
|
3.3
|
|
|
(4.2)
|
|
|
7.6
|
|
|
(41.4)
|
|
Operating working
capital changes
|
(9.5)
|
|
|
12.9
|
|
|
(52.5)
|
|
|
(72.3)
|
|
Deferred purchase
price on sold receivables
|
—
|
|
|
(7.5)
|
|
|
(6.9)
|
|
|
(32.3)
|
|
Increase (decrease)
in cash from changes in other assets and liabilities
|
20.2
|
|
|
(55.5)
|
|
|
(27.4)
|
|
|
(83.2)
|
|
Net cash provided by
operating activities
|
141.5
|
|
|
51.3
|
|
|
194.1
|
|
|
55.8
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Acquisitions of
companies, net of cash acquired
|
(29.5)
|
|
|
—
|
|
|
(1,857.9)
|
|
|
—
|
|
Purchases of
properties, plants and equipment
|
(40.2)
|
|
|
(35.7)
|
|
|
(103.8)
|
|
|
(92.0)
|
|
Purchases of and
investments in timber properties
|
(1.8)
|
|
|
(1.7)
|
|
|
(4.1)
|
|
|
(6.6)
|
|
Proceeds from the
sale of properties, plants and equipment, businesses, timberland
and other assets
|
6.7
|
|
|
3.0
|
|
|
17.7
|
|
|
12.9
|
|
Proceeds on insurance
recoveries
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Net cash used in
investing activities
|
(64.8)
|
|
|
(34.4)
|
|
|
(1,947.9)
|
|
|
(85.7)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
(payments on) debt, net
|
(64.4)
|
|
|
4.6
|
|
|
1,876.9
|
|
|
69.5
|
|
Dividends paid to
Greif, Inc. shareholders
|
(26.1)
|
|
|
(24.8)
|
|
|
(77.9)
|
|
|
(74.0)
|
|
Payments for
extinguishment and issuance of debt
|
—
|
|
|
—
|
|
|
(44.1)
|
|
|
—
|
|
Other
|
(0.9)
|
|
|
(1.1)
|
|
|
(19.5)
|
|
|
(4.5)
|
|
Net cash provided by
(used for) financing activities
|
(91.4)
|
|
|
(21.3)
|
|
|
1,735.4
|
|
|
(9.0)
|
|
Reclassification of
cash to assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Effects of exchange
rates on cash
|
0.7
|
|
|
(3.0)
|
|
|
—
|
|
|
(2.5)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(14.0)
|
|
|
(7.4)
|
|
|
(18.4)
|
|
|
(41.4)
|
|
Cash and cash
equivalents, beginning of period
|
89.8
|
|
|
108.2
|
|
|
94.2
|
|
|
142.3
|
|
Cash and cash
equivalents, end of period
|
$
|
75.8
|
|
|
$
|
100.8
|
|
|
$
|
75.8
|
|
|
$
|
100.9
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
FINANCIAL
HIGHLIGHTS BY SEGMENT
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
642.1
|
|
|
$
|
687.6
|
|
|
$
|
1,871.6
|
|
|
$
|
1,965.7
|
|
Paper
Packaging & Services
|
530.0
|
|
|
236.0
|
|
|
1,244.9
|
|
|
653.7
|
|
Flexible
Products & Services
|
74.5
|
|
|
82.6
|
|
|
226.6
|
|
|
246.7
|
|
Land
Management
|
6.0
|
|
|
5.9
|
|
|
19.8
|
|
|
20.0
|
|
Total net
sales
|
$
|
1,252.6
|
|
|
$
|
1,012.1
|
|
|
$
|
3,362.9
|
|
|
$
|
2,886.1
|
|
Gross
profit:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
126.5
|
|
|
$
|
138.8
|
|
|
$
|
346.1
|
|
|
$
|
374.1
|
|
Paper
Packaging & Services
|
134.7
|
|
|
59.5
|
|
|
296.9
|
|
|
152.7
|
|
Flexible
Products & Services
|
16.0
|
|
|
16.7
|
|
|
50.0
|
|
|
49.5
|
|
Land
Management
|
2.2
|
|
|
2.1
|
|
|
7.9
|
|
|
7.8
|
|
Total gross
profit
|
$
|
279.4
|
|
|
$
|
217.1
|
|
|
$
|
700.9
|
|
|
$
|
584.1
|
|
Operating
profit:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
54.3
|
|
|
$
|
62.0
|
|
|
$
|
124.6
|
|
|
$
|
140.4
|
|
Paper
Packaging & Services
|
63.1
|
|
|
44.1
|
|
|
128.6
|
|
|
105.0
|
|
Flexible
Products & Services
|
5.0
|
|
|
5.8
|
|
|
22.2
|
|
|
14.0
|
|
Land
Management
|
3.2
|
|
|
2.1
|
|
|
8.0
|
|
|
7.8
|
|
Total operating
profit
|
$
|
125.6
|
|
|
$
|
114.0
|
|
|
$
|
283.4
|
|
|
$
|
267.2
|
|
EBITDA(10):
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
74.3
|
|
|
$
|
78.3
|
|
|
$
|
180.0
|
|
|
$
|
189.1
|
|
Paper
Packaging & Services
|
103.2
|
|
|
52.8
|
|
|
212.6
|
|
|
129.9
|
|
Flexible
Products & Services
|
7.1
|
|
|
7.8
|
|
|
27.8
|
|
|
20.0
|
|
Land
Management
|
4.3
|
|
|
3.3
|
|
|
11.2
|
|
|
11.1
|
|
Total
EBITDA
|
$
|
188.9
|
|
|
$
|
142.2
|
|
|
$
|
431.6
|
|
|
$
|
350.1
|
|
Adjusted
EBITDA(11):
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
82.8
|
|
|
$
|
82.8
|
|
|
$
|
200.4
|
|
|
$
|
202.4
|
|
Paper
Packaging & Services
|
111.0
|
|
|
53.1
|
|
|
239.6
|
|
|
130.2
|
|
Flexible
Products & Services
|
7.2
|
|
|
7.8
|
|
|
22.8
|
|
|
20.3
|
|
Land
Management
|
2.8
|
|
|
2.6
|
|
|
9.3
|
|
|
8.8
|
|
Total Adjusted
EBITDA
|
$
|
203.8
|
|
|
$
|
146.3
|
|
|
$
|
472.1
|
|
|
$
|
361.7
|
|
(10)EBITDA
is defined as net income, plus interest expense, net, including
debt extinguishment charges, plus income tax expense, plus
depreciation, depletion and amortization. However, because the
Company does not calculate net income by segment, this table
calculates EBITDA by segment with reference to operating profit by
segment, which, as demonstrated in the table of Consolidated
EBITDA, is another method to achieve the same result. See the
reconciliations in the table of Segment EBITDA.
|
(11)Adjusted EBITDA is defined as net
income, plus interest expense, net, including debt extinguishment
charges, plus income tax expense, plus depreciation, depletion and
amortization expense, plus restructuring charges, plus
acquisition-related costs, plus non-cash impairment charges, plus
non-cash pension settlement charges, less (gain) loss on disposal
of properties, plants, equipment and businesses, net.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
FINANCIAL
HIGHLIGHTS BY GEOGRAPHIC REGION
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
United
States
|
$
|
767.7
|
|
|
$
|
506.0
|
|
|
$
|
1,965.5
|
|
|
$
|
1,402.2
|
|
Europe, Middle East
and Africa
|
353.6
|
|
|
372.6
|
|
|
1,009.2
|
|
|
1,074.6
|
|
Asia Pacific and
other Americas
|
131.3
|
|
|
133.5
|
|
|
388.2
|
|
|
409.3
|
|
Total net
sales
|
$
|
1,252.6
|
|
|
$
|
1,012.1
|
|
|
$
|
3,362.9
|
|
|
$
|
2,886.1
|
|
Gross
profit:
|
|
|
|
|
|
|
|
United
States
|
$
|
183.5
|
|
|
$
|
125.6
|
|
|
$
|
443.6
|
|
|
$
|
323.9
|
|
Europe, Middle East
and Africa
|
73.3
|
|
|
69.9
|
|
|
196.0
|
|
|
198.7
|
|
Asia Pacific and
other Americas
|
22.6
|
|
|
21.6
|
|
|
61.3
|
|
|
61.5
|
|
Total gross
profit
|
$
|
279.4
|
|
|
$
|
217.1
|
|
|
$
|
700.9
|
|
|
$
|
584.1
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
CONSOLIDATED
ADJUSTED EBITDA(12)
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
67.5
|
|
|
$
|
72.0
|
|
|
$
|
124.4
|
|
|
$
|
184.0
|
|
Plus: Interest
expense, net
|
34.5
|
|
|
12.1
|
|
|
80.1
|
|
|
38.4
|
|
Plus: Debt
extinguishment charges
|
0.1
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Plus: Income tax
expense
|
26.8
|
|
|
25.7
|
|
|
58.3
|
|
|
31.2
|
|
Plus: Depreciation,
depletion and amortization expense
|
60.0
|
|
|
32.4
|
|
|
146.8
|
|
|
96.5
|
|
EBITDA
|
$
|
188.9
|
|
|
$
|
142.2
|
|
|
$
|
431.6
|
|
|
$
|
350.1
|
|
Net income
|
$
|
67.5
|
|
|
$
|
72.0
|
|
|
$
|
124.4
|
|
|
$
|
184.0
|
|
Plus: Interest
expense, net
|
34.5
|
|
|
12.1
|
|
|
80.1
|
|
|
38.4
|
|
Plus: Debt
extinguishment charges
|
0.1
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Plus: Income tax
expense
|
26.8
|
|
|
25.7
|
|
|
58.3
|
|
|
31.2
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Plus: Other expense,
net
|
(1.1)
|
|
|
4.8
|
|
|
1.0
|
|
|
15.0
|
|
Plus: Equity earnings
of unconsolidated affiliates, net of tax
|
(2.2)
|
|
|
(1.0)
|
|
|
(2.4)
|
|
|
(1.8)
|
|
Operating
profit
|
$
|
125.6
|
|
|
$
|
114.0
|
|
|
$
|
283.4
|
|
|
$
|
267.2
|
|
Less: Other expense,
net
|
(1.1)
|
|
|
4.8
|
|
|
1.0
|
|
|
15.0
|
|
Less: Non-cash
pension settlement charges
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(2.2)
|
|
|
(1.0)
|
|
|
(2.4)
|
|
|
(1.8)
|
|
Plus: Depreciation,
depletion and amortization expense
|
60.0
|
|
|
32.4
|
|
|
146.8
|
|
|
96.5
|
|
EBITDA
|
$
|
188.9
|
|
|
$
|
142.2
|
|
|
$
|
431.6
|
|
|
$
|
350.1
|
|
Plus: Restructuring
charges
|
9.1
|
|
|
3.7
|
|
|
20.3
|
|
|
13.8
|
|
Plus:
Acquisition-related costs
|
5.8
|
|
|
0.5
|
|
|
22.2
|
|
|
0.7
|
|
Plus: Non-cash asset
impairment charges
|
—
|
|
|
0.8
|
|
|
2.1
|
|
|
4.1
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Less: Gain on
disposal of properties, plants, equipment, and businesses,
net
|
—
|
|
|
(1.3)
|
|
|
(4.1)
|
|
|
(7.4)
|
|
Adjusted
EBITDA
|
$
|
203.8
|
|
|
$
|
146.3
|
|
|
$
|
472.1
|
|
|
$
|
361.7
|
|
(12)
Adjusted EBITDA is defined as net income, plus interest expense,
net, including debt extinguishment charges, plus income tax
expense, plus depreciation, depletion and amortization expense,
plus restructuring charges, plus acquisition-related costs, plus
non-cash impairment charges, plus non-cash pension settlement
charges, less (gain) loss on disposal of properties, plants,
equipment and businesses, net.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
SEGMENT ADJUSTED
EBITDA(13)
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Operating
profit
|
54.3
|
|
|
62.0
|
|
|
124.6
|
|
|
140.4
|
|
Less: Other expense,
net
|
0.8
|
|
|
4.8
|
|
|
4.0
|
|
|
14.9
|
|
Less: Non-cash
Pension settlement charge
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(2.2)
|
|
|
(1.0)
|
|
|
(2.4)
|
|
|
(1.8)
|
|
Plus: Depreciation
and amortization expense
|
18.6
|
|
|
20.5
|
|
|
57.0
|
|
|
62.2
|
|
EBITDA
|
$
|
74.3
|
|
|
$
|
78.3
|
|
|
$
|
180.0
|
|
|
$
|
189.1
|
|
Plus: Restructuring
charges
|
7.0
|
|
|
3.3
|
|
|
15.0
|
|
|
13.1
|
|
Plus:
Acquisition-related costs
|
0.1
|
|
|
0.5
|
|
|
0.4
|
|
|
0.7
|
|
Plus: Non-cash asset
impairment charges
|
—
|
|
|
0.8
|
|
|
2.1
|
|
|
4.1
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
1.4
|
|
|
(0.5)
|
|
|
2.9
|
|
|
(5.0)
|
|
Adjusted
EBITDA
|
$
|
82.8
|
|
|
$
|
82.8
|
|
|
$
|
200.4
|
|
|
$
|
202.4
|
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Operating
profit
|
63.1
|
|
|
44.1
|
|
|
128.6
|
|
|
105.0
|
|
Less: Other (income)
expense, net
|
(1.2)
|
|
|
0.2
|
|
|
(2.1)
|
|
|
0.7
|
|
Plus: Depreciation
and amortization expense
|
38.9
|
|
|
8.9
|
|
|
81.9
|
|
|
25.6
|
|
EBITDA
|
$
|
103.2
|
|
|
$
|
52.8
|
|
|
$
|
212.6
|
|
|
$
|
129.9
|
|
Plus: Restructuring
charges
|
2.1
|
|
|
0.3
|
|
|
5.2
|
|
|
0.3
|
|
Plus:
Acquisition-related costs
|
5.7
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
111.0
|
|
|
$
|
53.1
|
|
|
$
|
239.6
|
|
|
$
|
130.2
|
|
Flexible
Products & Services
|
|
|
|
|
|
|
|
Operating
profit
|
5.0
|
|
|
5.8
|
|
|
22.2
|
|
|
14.0
|
|
Less: Other (income)
expense, net
|
(0.7)
|
|
|
(0.2)
|
|
|
(0.9)
|
|
|
(0.6)
|
|
Plus: Depreciation
and amortization expense
|
1.4
|
|
|
1.8
|
|
|
4.7
|
|
|
5.4
|
|
EBITDA
|
$
|
7.1
|
|
|
$
|
7.8
|
|
|
$
|
27.8
|
|
|
$
|
20.0
|
|
Plus: Restructuring
charges
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment and businesses,
net
|
0.1
|
|
|
(0.1)
|
|
|
(5.0)
|
|
|
(0.1)
|
|
Adjusted
EBITDA
|
$
|
7.2
|
|
|
$
|
7.8
|
|
|
$
|
22.8
|
|
|
$
|
20.3
|
|
Land
Management
|
|
|
|
|
|
|
|
Operating
profit
|
3.2
|
|
|
2.1
|
|
|
8.0
|
|
|
7.8
|
|
Plus: Depreciation,
depletion and amortization expense
|
1.1
|
|
|
1.2
|
|
|
3.2
|
|
|
3.3
|
|
EBITDA
|
$
|
4.3
|
|
|
$
|
3.3
|
|
|
$
|
11.2
|
|
|
$
|
11.1
|
|
Plus: Restructuring
charges
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Less: Gain on
disposal of properties, plants, equipment, net
|
(1.5)
|
|
|
(0.7)
|
|
|
(2.0)
|
|
|
(2.3)
|
|
Adjusted
EBITDA
|
$
|
2.8
|
|
|
$
|
2.6
|
|
|
$
|
9.3
|
|
|
$
|
8.8
|
|
Consolidated
EBITDA
|
$
|
188.9
|
|
|
$
|
142.2
|
|
|
$
|
431.6
|
|
|
$
|
350.1
|
|
Consolidated Adjusted
EBITDA
|
$
|
203.8
|
|
|
$
|
146.3
|
|
|
$
|
472.1
|
|
|
$
|
361.7
|
|
(13)
Adjusted EBITDA is defined as net income, plus interest expense,
net, including debt extinguishment charges, plus income tax
expense, plus depreciation, depletion and amortization expense,
plus restructuring charges, plus acquisition-related costs, plus
non-cash impairment charges, plus non-cash pension settlement
charges, less (gain) loss on disposal of properties, plants,
equipment and businesses, net. However, because the Company does
not calculate net income by segment, this table calculates adjusted
EBITDA by segment with reference to operating profit by segment,
which, as demonstrated in the table of consolidated adjusted
EBITDA, is another method to achieve the same result.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
ADJUSTED FREE CASH
FLOW(14)
UNAUDITED
|
|
|
|
|
|
Three months ended
July 31,
|
|
Nine months ended
July 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash provided
by operating activities
|
$
|
141.5
|
|
|
$
|
51.3
|
|
|
$
|
194.1
|
|
|
$
|
55.8
|
|
Cash paid for
purchases of properties, plants and equipment
|
(40.2)
|
|
|
(35.7)
|
|
|
(103.8)
|
|
|
(92.0)
|
|
Free cash
flow
|
$
|
101.3
|
|
|
$
|
15.6
|
|
|
$
|
90.3
|
|
|
$
|
(36.2)
|
|
Cash paid for
acquisition-related costs
|
5.8
|
|
|
0.5
|
|
|
22.2
|
|
|
0.7
|
|
Cash paid for debt
issuance costs(15)
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Additional U.S.
pension contribution
|
—
|
|
|
65.0
|
|
|
—
|
|
|
65.0
|
|
Adjusted free cash
flow
|
$
|
107.1
|
|
|
$
|
81.1
|
|
|
$
|
117.6
|
|
|
$
|
29.5
|
|
(14)Adjusted free cash flow is defined as
net cash provided by operating activities, plus cash paid for
acquisition-related costs, plus cash paid for debt issuance costs,
plus additional one-time $65.0 million contribution made by the
Company to its U.S. defined benefit plan during the third quarter
of 2018, less cash paid for purchases of properties, plants and
equipment.
|
(15)Cash
paid for debt issuance costs is defined as cash payments for debt
issuance related expenses included within net cash used in
operating activities.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
NET INCOME, CLASS
A EARNINGS PER SHARE AND TAX RATE BEFORE
ADJUSTMENTS
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except for per share amounts)
|
Income before
Income Tax
(Benefit)
Expense and
Equity
Earnings of
Unconsolidated
Affiliates, net
|
|
Income
Tax
(Benefit)
Expense
|
|
Equity
Earnings
|
|
Non-
Controlling
Interest
|
|
Net
Income
Attributable
to
Greif, Inc.
|
|
Diluted
Class A
Earnings
Per
Share
|
|
Tax
Rate
|
Three months ended
July 31, 2019
|
$
|
92.1
|
|
|
$
|
26.8
|
|
|
$
|
(2.2)
|
|
|
$
|
4.8
|
|
|
$
|
62.7
|
|
|
$
|
1.06
|
|
|
29.1%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
|
Restructuring
charges
|
9.1
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|
0.13
|
|
|
|
Debt extinguishment
charges
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
Acquisition-related
costs
|
5.8
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
0.07
|
|
|
|
Excluding
Adjustments
|
$
|
107.1
|
|
|
$
|
29.7
|
|
|
$
|
(2.2)
|
|
|
$
|
4.9
|
|
|
$
|
74.7
|
|
|
$
|
1.26
|
|
|
27.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
July 31, 2018
|
$
|
96.7
|
|
|
$
|
25.7
|
|
|
$
|
(1.0)
|
|
|
$
|
4.3
|
|
|
$
|
67.7
|
|
|
$
|
1.15
|
|
|
26.6%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
(1.3)
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
(1.1)
|
|
|
(0.02)
|
|
|
|
Restructuring
charges
|
3.7
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
0.04
|
|
|
|
Acquisition-related
costs
|
0.5
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.01
|
|
|
|
Non-cash asset
impairment charges
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.02
|
|
|
|
Non-cash pension
settlement charges
|
0.4
|
|
|
0.1
|
|
|
|
|
|
|
0.3
|
|
|
—
|
|
|
|
Excluding
Adjustments
|
$
|
100.8
|
|
|
$
|
26.6
|
|
|
$
|
(1.0)
|
|
|
$
|
4.3
|
|
|
$
|
70.9
|
|
|
$
|
1.20
|
|
|
26.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
July 31, 2019
|
$
|
180.3
|
|
|
$
|
58.3
|
|
|
$
|
(2.4)
|
|
|
$
|
18.4
|
|
|
$
|
106.0
|
|
|
$
|
1.80
|
|
|
32.3%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
(4.1)
|
|
|
(0.6)
|
|
|
—
|
|
|
(2.5)
|
|
|
(1.0)
|
|
|
(0.02)
|
|
|
|
Restructuring
charges
|
20.3
|
|
|
4.5
|
|
|
—
|
|
|
0.1
|
|
|
15.7
|
|
|
0.27
|
|
|
|
Debt extinguishment
charges
|
22.0
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
|
16.7
|
|
|
0.28
|
|
|
|
Acquisition-related
costs
|
22.2
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
17.9
|
|
|
0.30
|
|
|
|
Non-cash asset
impairment charges
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
0.04
|
|
|
|
Tax net benefit
resulting from the Tax Reform Act
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
0.05
|
|
|
|
Excluding
Adjustments
|
$
|
242.8
|
|
|
$
|
68.6
|
|
|
$
|
(2.4)
|
|
|
$
|
16.0
|
|
|
$
|
160.6
|
|
|
$
|
2.72
|
|
|
28.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
July 31, 2018
|
$
|
213.4
|
|
|
$
|
31.2
|
|
|
$
|
(1.8)
|
|
|
$
|
14.7
|
|
|
$
|
169.3
|
|
|
$
|
2.88
|
|
|
14.6%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
(7.4)
|
|
|
(0.9)
|
|
|
—
|
|
|
—
|
|
|
(6.5)
|
|
|
(0.11)
|
|
|
|
Restructuring
charges
|
13.8
|
|
|
2.8
|
|
|
—
|
|
|
0.2
|
|
|
10.8
|
|
|
0.18
|
|
|
|
Acquisition-related
costs
|
0.7
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.01
|
|
|
|
Non-cash asset
impairment charges
|
4.1
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
0.06
|
|
|
|
Non-cash pension
settlement charges
|
0.4
|
|
|
0.1
|
|
|
|
|
|
|
0.3
|
|
|
—
|
|
|
|
Tax net benefit
resulting from the Tax Reform Act
|
—
|
|
|
33.4
|
|
|
—
|
|
|
—
|
|
|
(33.4)
|
|
|
(0.57)
|
|
|
|
Excluding
Adjustments
|
$
|
225.0
|
|
|
$
|
67.5
|
|
|
$
|
(1.8)
|
|
|
$
|
14.9
|
|
|
$
|
144.4
|
|
|
$
|
2.45
|
|
|
30.0%
|
The impact of income
tax expense and non-controlling interest on each adjustment is
calculated based on tax rates and ownership percentages specific to
each applicable entity.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
NET SALES TO NET
SALES EXCLUDING THE IMPACT OF
CURRENCY
TRANSLATION
UNAUDITED
|
|
|
|
|
|
|
|
Three months ended
July 31,
|
|
|
|
|
(in
millions)
|
2019
|
|
2018
|
|
Increase in
Net Sales ($)
|
|
Increase in
Net Sales (%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,252.6
|
|
|
$
|
1,012.1
|
|
|
$
|
240.5
|
|
|
23.8%
|
Currency
Translation
|
19.7
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,272.3
|
|
|
$
|
1,012.1
|
|
|
$
|
260.2
|
|
|
25.7%
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
642.1
|
|
|
$
|
687.6
|
|
|
$
|
(45.5)
|
|
|
(6.6)%
|
Currency
Translation
|
16.2
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
658.3
|
|
|
$
|
687.6
|
|
|
$
|
(29.3)
|
|
|
(4.3)%
|
Flexible
Products & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
74.5
|
|
|
$
|
82.6
|
|
|
$
|
(8.1)
|
|
|
(9.8)%
|
Currency
Translation
|
3.2
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
77.7
|
|
|
$
|
82.6
|
|
|
$
|
(4.9)
|
|
|
(5.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
July 31,
|
|
|
|
|
(in
millions)
|
2019
|
|
2018
|
|
Increase in
Net Sales ($)
|
|
Increase in
Net Sales (%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
3,362.9
|
|
|
$
|
2,886.1
|
|
|
$
|
476.8
|
|
|
16.5%
|
Currency
Translation
|
86.1
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
3,449.0
|
|
|
$
|
2,886.1
|
|
|
$
|
562.9
|
|
|
19.5%
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,871.6
|
|
|
$
|
1,965.7
|
|
|
$
|
(94.1)
|
|
|
(4.8)%
|
Currency
Translation
|
72.6
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,944.2
|
|
|
$
|
1,965.7
|
|
|
$
|
(21.5)
|
|
|
(1.1)%
|
Flexible
Products & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
226.6
|
|
|
$
|
246.7
|
|
|
$
|
(20.1)
|
|
|
(8.1)%
|
Currency
Translation
|
13.3
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
239.9
|
|
|
$
|
246.7
|
|
|
$
|
(6.8)
|
|
|
(2.8)%
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
PROJECTED 2019
GUIDANCE RECONCILIATION
ADJUSTED
FREE CASH FLOW
UNAUDITED
|
|
|
|
Fiscal 2019
Guidance Range
|
(in
millions)
|
Scenario
1
|
|
Scenario
2
|
Net cash provided
by operating activities
|
$
|
344.9
|
|
|
$
|
384.9
|
|
Cash paid for
purchases of properties, plants and equipment
|
(150.0)
|
|
|
(170.0)
|
|
Free cash
flow
|
$
|
194.9
|
|
|
$
|
214.9
|
|
Cash paid for
acquisition-related costs
|
30.0
|
|
|
30.0
|
|
Cash paid for debt
issuance costs
|
5.1
|
|
|
5.1
|
|
Adjusted free cash
flow
|
$
|
230.0
|
|
|
$
|
250.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
PROJECTED 2019
MODELING ASSUMPTIONS
UNAUDITED
|
|
|
|
(in
millions)
|
Fiscal 2019
Modeling
Assumptions
Reported at Q2
|
Fiscal 2019
Modeling
Assumptions
Reported at Q3
|
Depreciation &
amortization expense
|
$195 -
$205
|
$205 -
$215
|
Interest expense,
net
|
$115 -
$120
|
$110 -
$115
|
Other expense,
net
|
$15 - $20
|
$0 - $5
|
Net income
attributable to noncontrolling interest
|
$18 - $22
|
$18 - $22
|
Tax rate excluding
the impact of special items
|
28% - 32%
|
28% - 32%
|
Capital
expenditures
|
$160 -
$180
|
$150 -
$170
|
View original content to download
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SOURCE Greif, Inc.