DELAWARE, Ohio, Dec. 4,
2019 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a
world leader in industrial packaging products and services, today
announced fiscal 2019 and fourth quarter results.
Fiscal Year Highlights Include (all results compared to the
fiscal year 2018 unless otherwise noted):
- Completed the acquisition of Caraustar Industries, Inc.
("Caraustar") and increased anticipated run rate synergies to at
least $70.0 million from original
$45.0 million estimate. Approximately
$24.0 million of synergies were
realized in fiscal 2019.
- Net sales increased by $721.2
million to $4,595.0
million.
- Gross profit increased by $171.0
million to $959.9
million.
- Income tax expense decreased by $2.6
million to $70.7 million, but
our effective tax rate increased from 24.4 percent to 27.0
percent.
- Net income of $171.0 million or
$2.89 per diluted Class A share
decreased compared to net income of $209.4
million or $3.55 per diluted
Class A share. Net income, excluding the impact of
adjustments(1), of $234.0
million or $3.96 per diluted
Class A share increased compared to net income, excluding the
impact of adjustments, of $208.7
million or $3.53 per diluted
Class A share. Adjusted EBITDA(2) increased by
$155.7 million to $658.9 million.
- Net cash provided by operating activities increased by
$136.5 million to $389.5 million. Adjusted free cash
flow(3) increased by $89.3
million to $267.8
million.
- Reduced net debt by $178.1
million since April 30,
2019.
Fourth Quarter Highlights Include (all results compared to
the fourth quarter 2018 unless otherwise noted):
- Net sales increased by $244.4
million to $1,232.1
million.
- Gross profit increased by $54.2
million to $259.0
million.
- Income tax expense decreased by $29.7
million to $12.4 million.
- Net income of $65.0 million or
$1.09 per diluted Class A share
increased compared to net income of $40.1
million or $0.67 per diluted
Class A share. Net income, excluding the impact of adjustments, of
$73.4 million or $1.24 per diluted Class A share increased
compared to net income, excluding the impact of adjustments, of
$64.3 million or $1.08 per diluted Class A share. Adjusted
EBITDA increased by $45.3
million to $186.8
million.
- Net cash provided by operating activities decreased by
$1.8 million to $195.4 million. Adjusted free cash
flow increased by $1.2 million
to $150.2 million.
"The global Greif team executed well despite a challenging
industrial business environment in both the fourth quarter and
fiscal 2019," said Pete Watson,
Greif's President and Chief Executive Officer. "We achieved a step
change in financial performance with the acquisition of Caraustar
and advanced our focus on customer service excellence and
disciplined operational execution around our global portfolio. As
we look ahead to fiscal 2020, we are committed to managing those
areas within our control to successfully navigate a continued
uncertain global macro-economic environment."
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(1)
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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.
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(2)
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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.
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(3)
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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, plus cash paid for
acquisition-related ERP systems, less cash paid for purchases of
properties, plants and equipment.
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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 was 90.5
during the fiscal fourth quarter, and this was the first time the
Company's CSI score exceeded 90.0 since data began to be tracked in
fiscal 2015. Our long term objective is for each business to
achieve a CSI score of 95.0 or greater.
CSI for the Rigid Industrial Packaging & Services segment
was 90.1, or roughly 3% higher than prior year quarter. CSI for the
Flexible Products & Services segment was 95.2, or roughly 2%
higher than prior year quarter. CSI for the Paper Packaging &
Services segment fell by roughly 5% to 90.7, but excluding
Caraustar operations would have been 94.6 and flat to the prior
year quarter.
Additionally, we completed our ninth
NPS(5) survey and achieved our best ever score of
61, which exceeds our aspirational NPS goal of 55 or greater. Our
latest score represents a 56% improvement from Wave 1 and a 7%
increase from our Wave 8 survey conducted earlier in fiscal 2019.
We continue to leverage the increased customer interactions that
accompany each survey into additional enhancements for our
customers and better strategic insight into their business
needs.
Segment Results (all results compared to the fourth quarter
of 2018 unless otherwise noted)
Net sales are impacted mainly by the volume of primary
products(6) 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 fourth 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
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Rigid Industrial
Packaging &
Services
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Paper Packaging &
Services
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Flexible Products
&
Services
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%
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%
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%
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Currency
Translation
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(2.3)
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%
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—
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(3.1)
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%
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Volume
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(5.3)
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%
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(7.7)
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%
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(2.4)
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%
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Selling Prices and
Product Mix
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0.0
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%
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(5.6)
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%
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(0.7)
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%
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Total Impact of
Primary Products
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(7.6)
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%
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(13.3)
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%
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(6.2)
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%
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Rigid Industrial Packaging & Services
Net sales decreased by $38.9
million to $619.0 million. Net
sales excluding foreign currency translation decreased by
$27.6 million due primarily to
continued demand softness in Western/Central Europe, APAC and the U.S.
Gross profit decreased by $2.7
million to $114.0 million. The
decrease in gross profit was primarily due to the same factors that
impacted net sales.
Operating profit increased by $12.2
million to $55.0 million
primarily due to gain on disposal of properties, plants, equipment
and businesses, net, as well as a decrease in the segment's
SG&A expense. The decrease in SG&A expense includes a
one-time Brazilian tax recovery of approximately $7.0 million related to taxes paid over the past
two decades. Adjusted EBITDA decreased by $1.5 million to $69.5
million primarily due to the same factors that impacted net
sales and partially offset by lower SG&A expenses.
Paper Packaging & Services
Net sales increased by $290.3
million to $535.1 million. The
increase in sales was primarily due to $322.6 million of contribution from the acquired
Caraustar operations, partially offset by the impact of
approximately 12,000 tons of containerboard economic downtime,
approximately 6,500 tons of scheduled containerboard maintenance
downtime, and lower published containerboard prices.
Gross profit increased by $58.7
million to $128.5 million. The
increase in gross profit was primarily due to $73.7 million of contribution from the acquired
Caraustar operations, partially offset by the same factors that
impacted net sales.
Operating profit increased by $2.4
million to $55.7 million.
Adjusted EBITDA increased by $46.6
million to $108.7 million
primarily due to $63.6 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 $6.6
million to $70.9 million. Net
sales excluding foreign currency translation decreased by
$4.3 million due primarily to
continued demand softness in Western
Europe.
Gross profit decreased by $1.5
million to $14.2 million
primarily due to the same factors that impacted net sales,
partially offset by lower manufacturing costs.
Operating profit decreased by $2.3
million to $3.1 million.
Adjusted EBITDA increased by $0.5
million to $5.8 million. The
increase in adjusted EBITDA was primarily due to a reduction in the
segment's SG&A expense.
Land Management
Net sales decreased by $0.4
million to $7.1 million.
Operating profit increased by $0.1
million to $1.9 million.
Adjusted EBITDA decreased by $0.3
million to $2.8 million.
Tax Summary
During the fourth quarter, the Company recorded an income tax
rate of 15.2 percent and a tax rate excluding the impact of
adjustments of 17.0 percent. As previously disclosed, the
application of FIN 18 often causes fluctuations in our
quarterly effective tax rates. For the full year, the Company
recorded an income tax rate of 27.0 percent and a tax rate
excluding the impact of adjustments of 25.1 percent. Both
full year rates reflect fourth quarter benefits of $6.1 million from return to provision adjustments
and reserve releases due to audit settlements and statute
expirations.
Dividend Summary
On December 3, 2019, the Board of
Directors declared quarterly cash dividends of $0.44 per share of Class A Common Stock and
$0.65 per share of Class B Common
Stock. Dividends are payable on January 1,
2020, to stockholders of record at the close of business on
December 18, 2019.
Company Outlook
(in millions,
except per share amounts)
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Fiscal 2020
Outlook
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Class A earnings per
share before adjustments
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$3.63 -
$4.13
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Adjusted free cash
flow
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$245 -
$285
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Note: 2020 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 2020 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 2020 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)
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Customer satisfaction
index (CSI) tracks a variety of internal metrics designed to
enhance the customer experience in dealing with Greif.
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(5)
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Net Promoter Score
(NPS) is derived from a survey conducted by a third party that
measures how likely a customer is to recommend Greif as a business
partner. NPS scores are calculated by subtracting the percentage of
detractors a business has from the percentage of its
promoters.
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(6)
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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.
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GREIF, INC. AND
SUBSIDIARY COMPANIES
SELECTED FINANCIAL
HIGHLIGHTS
UNAUDITED
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Three months ended
October 31,
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Twelve months
ended October 31,
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(in millions,
except for per share amounts)
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2019
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2018
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2019
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2018
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Selected Financial
Highlights
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Net sales
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$
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1,232.1
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$
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987.7
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$
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4,595.0
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$
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3,873.8
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Gross
profit
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259.0
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204.8
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959.9
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788.9
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Gross profit
margin
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21.0
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%
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20.7
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%
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20.9
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%
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20.4
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%
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Operating
profit
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115.7
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103.3
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399.1
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370.5
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EBITDA(7)
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173.9
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130.6
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605.5
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480.7
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Adjusted
EBITDA(8)
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186.8
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141.5
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658.9
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503.2
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Net cash provided by
operating activities
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195.4
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197.2
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389.5
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253.0
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Adjusted Free cash
flow(9)
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150.2
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149.0
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267.8
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178.5
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Net income
attributable to Greif, Inc.
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65.0
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40.1
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171.0
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209.4
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Diluted Class A
earnings per share attributable to Greif, Inc.
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$
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1.09
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$
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0.67
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$
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2.89
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$
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3.55
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Adjusted Diluted
Class A earnings per share attributable to Greif,
Inc.
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$
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1.24
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$
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1.08
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$
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3.96
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$
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3.53
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Adjustments
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Restructuring
charges
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$
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5.8
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$
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4.8
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$
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26.1
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$
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18.6
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Acquisition-related
costs
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7.5
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—
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29.7
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0.7
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Debt extinguishment
charges
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—
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—
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22.0
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—
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Non-cash asset
impairment charges
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5.7
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4.2
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7.8
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8.3
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Non-cash pension
settlement charges
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—
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0.9
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—
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1.3
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(Gain) loss on
disposal of properties, plants and equipment and businesses,
net
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(6.1)
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1.0
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(10.2)
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(6.4)
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Tax net expense
(benefit) resulting from Tax Cuts and Jobs Act
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(3.7)
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14.2
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(0.5)
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(19.2)
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Total
Adjustments
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$
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9.2
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$
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25.1
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$
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74.9
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$
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3.3
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|
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October 31,
2019
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October 31,
2018
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Operating working
capital(10)
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$
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587.2
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$
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342.4
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(7)EBITDA
is defined as net income, plus interest expense, net, including
debt extinguishment charges, plus income tax expense, plus
depreciation, depletion and amortization.
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(8)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.
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(9)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, plus cash paid for acquisition-related ERP systems, less
cash paid for purchases of properties, plants and
equipment.
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(10)Operating working capital is defined
as trade accounts receivable plus inventories less accounts
payable.
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Conference Call
The Company will host a conference call to discuss the fourth
quarter of 2019 results on December 5,
2019, at 8:30 a.m. Eastern
Time (ET). To participate, domestic callers should call
833-231-8265. The Greif ID is 7795183. 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, 2019. 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
October 31,
|
|
Twelve months
ended October 31,
|
(in millions,
except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
1,232.1
|
|
|
$
|
987.7
|
|
|
$
|
4,595.0
|
|
|
$
|
3,873.8
|
|
Cost of products
sold
|
973.1
|
|
|
782.9
|
|
|
3,635.1
|
|
|
3,084.9
|
|
Gross
profit
|
259.0
|
|
|
204.8
|
|
|
959.9
|
|
|
788.9
|
|
Selling, general and
administrative expenses
|
130.4
|
|
|
91.5
|
|
|
507.4
|
|
|
397.2
|
|
Restructuring
charges
|
5.8
|
|
|
4.8
|
|
|
26.1
|
|
|
18.6
|
|
Acquisition-related
costs
|
7.5
|
|
|
—
|
|
|
29.7
|
|
|
0.7
|
|
Non-cash asset
impairment charges
|
5.7
|
|
|
4.2
|
|
|
7.8
|
|
|
8.3
|
|
(Gain) loss on
disposal of properties, plants and equipment, net
|
(6.8)
|
|
|
1.9
|
|
|
(13.9)
|
|
|
(5.6)
|
|
(Gain) loss on
disposal of businesses, net
|
0.7
|
|
|
(0.9)
|
|
|
3.7
|
|
|
(0.8)
|
|
Operating
profit
|
115.7
|
|
|
103.3
|
|
|
399.1
|
|
|
370.5
|
|
Interest expense,
net
|
32.4
|
|
|
12.6
|
|
|
112.5
|
|
|
51.0
|
|
Non-cash pension
settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Debt extinguishment
charges
|
—
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Other (income)
expense, net
|
1.6
|
|
|
3.4
|
|
|
2.6
|
|
|
18.4
|
|
Income before income
tax expense and equity earnings of unconsolidated affiliates,
net
|
81.7
|
|
|
86.4
|
|
|
262.0
|
|
|
299.8
|
|
Income tax
expense
|
12.4
|
|
|
42.1
|
|
|
70.7
|
|
|
73.3
|
|
Equity earnings of
unconsolidated affiliates, net of tax
|
(0.5)
|
|
|
(1.2)
|
|
|
(2.9)
|
|
|
(3.0)
|
|
Net income
|
69.8
|
|
|
45.5
|
|
|
194.2
|
|
|
229.5
|
|
Net income
attributable to noncontrolling interests
|
(4.8)
|
|
|
(5.4)
|
|
|
(23.2)
|
|
|
(20.1)
|
|
Net income
attributable to Greif, Inc.
|
$
|
65.0
|
|
|
$
|
40.1
|
|
|
$
|
171.0
|
|
|
$
|
209.4
|
|
Basic earnings per
share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
1.09
|
|
|
$
|
0.68
|
|
|
$
|
2.89
|
|
|
$
|
3.56
|
|
Class B common
stock
|
$
|
1.65
|
|
|
$
|
1.03
|
|
|
$
|
4.33
|
|
|
$
|
5.33
|
|
Diluted earnings
per share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
1.09
|
|
|
$
|
0.67
|
|
|
$
|
2.89
|
|
|
$
|
3.55
|
|
Class B common
stock
|
$
|
1.65
|
|
|
$
|
1.03
|
|
|
$
|
4.33
|
|
|
$
|
5.33
|
|
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
|
26.4
|
|
|
26.1
|
|
|
26.2
|
|
|
26.0
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
UNAUDITED
|
|
|
|
|
(in
millions)
|
October 31,
2019
|
|
October 31,
2018
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
77.3
|
|
|
$
|
94.2
|
|
Trade accounts
receivable
|
664.2
|
|
|
456.7
|
|
Inventories
|
358.2
|
|
|
289.5
|
|
Other current
assets
|
149.3
|
|
|
136.3
|
|
|
1,249.0
|
|
|
976.7
|
|
LONG-TERM
ASSETS
|
|
|
|
Goodwill
|
1,517.8
|
|
|
776.0
|
|
Intangible
assets
|
776.5
|
|
|
80.6
|
|
Assets held by
special purpose entities
|
50.9
|
|
|
50.9
|
|
Other long-term
assets
|
142.2
|
|
|
118.7
|
|
|
2,487.4
|
|
|
1,026.2
|
|
PROPERTIES, PLANTS
AND EQUIPMENT
|
1,690.3
|
|
|
1,191.9
|
|
|
$
|
5,426.7
|
|
|
$
|
3,194.8
|
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
|
435.2
|
|
|
$
|
403.8
|
|
Short-term
borrowings
|
9.2
|
|
|
7.3
|
|
Current portion of
long-term debt
|
83.7
|
|
|
18.8
|
|
Other current
liabilities
|
297.3
|
|
|
240.3
|
|
|
825.4
|
|
|
670.2
|
|
LONG-TERM
LIABILITIES
|
|
|
|
Long-term
debt
|
2,659.0
|
|
|
884.1
|
|
Liabilities held by
special purpose entities
|
43.3
|
|
|
43.3
|
|
Other long-term
liabilities
|
686.6
|
|
|
407.5
|
|
|
3,388.9
|
|
|
1,334.9
|
|
REDEEMABLE
NONCONTROLLING INTERESTS
|
21.3
|
|
|
35.5
|
|
EQUITY
|
|
|
|
Total Greif, Inc.
equity
|
1,133.1
|
|
|
1,107.8
|
|
Noncontrolling
interests
|
58.0
|
|
|
46.4
|
|
|
1,191.1
|
|
|
1,154.2
|
|
|
$
|
5,426.7
|
|
|
$
|
3,194.8
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
$
|
69.8
|
|
|
$
|
45.5
|
|
|
$
|
194.2
|
|
|
$
|
229.5
|
|
Depreciation,
depletion and amortization
|
59.3
|
|
|
30.4
|
|
|
206.1
|
|
|
126.9
|
|
Asset
impairments
|
5.7
|
|
|
4.2
|
|
|
7.8
|
|
|
8.3
|
|
Pension settlement
loss
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Other non-cash
adjustments to net income
|
4.2
|
|
|
39.5
|
|
|
11.8
|
|
|
(1.9)
|
|
Operating working
capital changes
|
76.1
|
|
|
37.8
|
|
|
23.6
|
|
|
(34.5)
|
|
Deferred purchase
price on sold receivables
|
—
|
|
|
34.4
|
|
|
(6.9)
|
|
|
2.1
|
|
Increase (decrease)
in cash from changes in other assets and liabilities
|
(19.7)
|
|
|
4.5
|
|
|
(47.1)
|
|
|
(78.7)
|
|
Net cash provided by
operating activities
|
195.4
|
|
|
197.2
|
|
|
389.5
|
|
|
253.0
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
(1,857.9)
|
|
|
—
|
|
Purchases of
properties, plants and equipment
|
(53.0)
|
|
|
(48.2)
|
|
|
(156.8)
|
|
|
(140.2)
|
|
Purchases of and
investments in timber properties
|
(1.3)
|
|
|
(2.3)
|
|
|
(5.4)
|
|
|
(8.9)
|
|
Proceeds from the
sale of properties, plants and equipment, businesses, timberland
and other assets
|
12.5
|
|
|
1.0
|
|
|
30.2
|
|
|
13.9
|
|
Proceeds on insurance
recoveries
|
0.4
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
Net cash used in
investing activities
|
(41.4)
|
|
|
(49.5)
|
|
|
(1,989.3)
|
|
|
(135.2)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
(payments on) debt, net
|
(125.8)
|
|
|
(125.2)
|
|
|
1,751.1
|
|
|
(55.7)
|
|
Dividends paid to
Greif, Inc. shareholders
|
(26.1)
|
|
|
(26.0)
|
|
|
(104.0)
|
|
|
(100.0)
|
|
Payments for
extinguishment and issuance of debt
|
—
|
|
|
—
|
|
|
(44.1)
|
|
|
—
|
|
Other
|
—
|
|
|
1.9
|
|
|
(19.5)
|
|
|
(2.6)
|
|
Net cash provided by
(used for) financing activities
|
(151.9)
|
|
|
(149.3)
|
|
|
1,583.5
|
|
|
(158.3)
|
|
Reclassification of
cash to assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Effects of exchange
rates on cash
|
(0.6)
|
|
|
(5.1)
|
|
|
(0.6)
|
|
|
(7.6)
|
|
Net increase
(decrease) in cash and cash equivalents
|
1.5
|
|
|
(6.7)
|
|
|
(16.9)
|
|
|
(48.1)
|
|
Cash and cash
equivalents, beginning of period
|
75.8
|
|
|
100.9
|
|
|
94.2
|
|
|
142.3
|
|
Cash and cash
equivalents, end of period
|
$
|
77.3
|
|
|
$
|
94.2
|
|
|
$
|
77.3
|
|
|
$
|
94.2
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
FINANCIAL
HIGHLIGHTS BY SEGMENT
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
619.0
|
|
|
$
|
657.9
|
|
|
$
|
2,490.6
|
|
|
$
|
2,623.6
|
|
Paper
Packaging & Services
|
535.1
|
|
|
244.8
|
|
|
1,780.0
|
|
|
898.5
|
|
Flexible
Products & Services
|
70.9
|
|
|
77.5
|
|
|
297.5
|
|
|
324.2
|
|
Land
Management
|
7.1
|
|
|
7.5
|
|
|
26.9
|
|
|
27.5
|
|
Total net
sales
|
$
|
1,232.1
|
|
|
$
|
987.7
|
|
|
$
|
4,595.0
|
|
|
$
|
3,873.8
|
|
Gross
profit:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
114.0
|
|
|
$
|
116.7
|
|
|
$
|
460.1
|
|
|
$
|
490.8
|
|
Paper
Packaging & Services
|
128.5
|
|
|
69.8
|
|
|
425.4
|
|
|
222.5
|
|
Flexible
Products & Services
|
14.2
|
|
|
15.7
|
|
|
64.2
|
|
|
65.2
|
|
Land
Management
|
2.3
|
|
|
2.6
|
|
|
10.2
|
|
|
10.4
|
|
Total gross
profit
|
$
|
259.0
|
|
|
$
|
204.8
|
|
|
$
|
959.9
|
|
|
$
|
788.9
|
|
Operating
profit:
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
55.0
|
|
|
$
|
42.8
|
|
|
$
|
179.6
|
|
|
$
|
183.2
|
|
Paper
Packaging & Services
|
55.7
|
|
|
53.3
|
|
|
184.3
|
|
|
158.3
|
|
Flexible
Products & Services
|
3.1
|
|
|
5.4
|
|
|
25.3
|
|
|
19.4
|
|
Land
Management
|
1.9
|
|
|
1.8
|
|
|
9.9
|
|
|
9.6
|
|
Total operating
profit
|
$
|
115.7
|
|
|
$
|
103.3
|
|
|
$
|
399.1
|
|
|
$
|
370.5
|
|
EBITDA(11):
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
71.6
|
|
|
$
|
59.9
|
|
|
$
|
251.6
|
|
|
$
|
249.0
|
|
Paper
Packaging & Services
|
94.4
|
|
|
61.9
|
|
|
307.0
|
|
|
191.8
|
|
Flexible
Products & Services
|
4.9
|
|
|
5.7
|
|
|
32.7
|
|
|
25.7
|
|
Land
Management
|
3.0
|
|
|
3.1
|
|
|
14.2
|
|
|
14.2
|
|
Total
EBITDA
|
$
|
173.9
|
|
|
$
|
130.6
|
|
|
$
|
605.5
|
|
|
$
|
480.7
|
|
Adjusted
EBITDA(12):
|
|
|
|
|
|
|
|
Rigid Industrial
Packaging & Services
|
$
|
69.5
|
|
|
$
|
71.0
|
|
|
$
|
269.9
|
|
|
$
|
273.4
|
|
Paper
Packaging & Services
|
108.7
|
|
|
62.1
|
|
|
348.3
|
|
|
192.3
|
|
Flexible
Products & Services
|
5.8
|
|
|
5.3
|
|
|
28.6
|
|
|
25.6
|
|
Land
Management
|
2.8
|
|
|
3.1
|
|
|
12.1
|
|
|
11.9
|
|
Total Adjusted
EBITDA
|
$
|
186.8
|
|
|
$
|
141.5
|
|
|
$
|
658.9
|
|
|
$
|
503.2
|
|
(11)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.
|
(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
FINANCIAL
HIGHLIGHTS BY GEOGRAPHIC REGION
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
United
States
|
$
|
762.2
|
|
|
$
|
518.3
|
|
|
$
|
2,727.7
|
|
|
$
|
1,920.5
|
|
Europe, Middle East
and Africa
|
341.2
|
|
|
336.3
|
|
|
1,350.4
|
|
|
1,410.9
|
|
Asia Pacific and
other Americas
|
128.7
|
|
|
133.1
|
|
|
516.9
|
|
|
542.4
|
|
Total net
sales
|
$
|
1,232.1
|
|
|
$
|
987.7
|
|
|
$
|
4,595.0
|
|
|
$
|
3,873.8
|
|
Gross
profit:
|
|
|
|
|
|
|
|
United
States
|
$
|
171.6
|
|
|
$
|
127.6
|
|
|
$
|
615.1
|
|
|
$
|
451.5
|
|
Europe, Middle East
and Africa
|
64.9
|
|
|
59.1
|
|
|
261.1
|
|
|
257.8
|
|
Asia Pacific and
other Americas
|
22.5
|
|
|
18.1
|
|
|
83.7
|
|
|
79.6
|
|
Total gross
profit
|
$
|
259.0
|
|
|
$
|
204.8
|
|
|
$
|
959.9
|
|
|
$
|
788.9
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
CONSOLIDATED
ADJUSTED EBITDA(13)
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
69.8
|
|
|
$
|
45.5
|
|
|
$
|
194.2
|
|
|
$
|
229.5
|
|
Plus: Interest
expense, net
|
32.4
|
|
|
12.6
|
|
|
112.5
|
|
|
51.0
|
|
Plus: Debt
extinguishment charges
|
—
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Plus: Income tax
expense
|
12.4
|
|
|
42.1
|
|
|
70.7
|
|
|
73.3
|
|
Plus: Depreciation,
depletion and amortization expense
|
59.3
|
|
|
30.4
|
|
|
206.1
|
|
|
126.9
|
|
EBITDA
|
$
|
173.9
|
|
|
$
|
130.6
|
|
|
$
|
605.5
|
|
|
$
|
480.7
|
|
Net income
|
$
|
69.8
|
|
|
$
|
45.5
|
|
|
$
|
194.2
|
|
|
$
|
229.5
|
|
Plus: Interest
expense, net
|
32.4
|
|
|
12.6
|
|
|
112.5
|
|
|
51.0
|
|
Plus: Debt
extinguishment charges
|
—
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
Plus: Income tax
expense
|
12.4
|
|
|
42.1
|
|
|
70.7
|
|
|
73.3
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Plus: Other expense,
net
|
1.6
|
|
|
3.4
|
|
|
2.6
|
|
|
18.4
|
|
Plus: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.5)
|
|
|
(1.2)
|
|
|
(2.9)
|
|
|
(3.0)
|
|
Operating
profit
|
115.7
|
|
|
103.3
|
|
|
399.1
|
|
|
370.5
|
|
Less: Other expense,
net
|
1.6
|
|
|
3.4
|
|
|
2.6
|
|
|
18.4
|
|
Less: Non-cash
pension settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.5)
|
|
|
(1.2)
|
|
|
(2.9)
|
|
|
(3.0)
|
|
Plus: Depreciation,
depletion and amortization expense
|
59.3
|
|
|
30.4
|
|
|
206.1
|
|
|
126.9
|
|
EBITDA
|
$
|
173.9
|
|
|
$
|
130.6
|
|
|
$
|
605.5
|
|
|
$
|
480.7
|
|
Plus: Restructuring
charges
|
$
|
5.8
|
|
|
$
|
4.8
|
|
|
$
|
26.1
|
|
|
$
|
18.6
|
|
Plus:
Acquisition-related costs
|
7.5
|
|
|
—
|
|
|
29.7
|
|
|
0.7
|
|
Plus: Non-cash asset
impairment charges
|
5.7
|
|
|
4.2
|
|
|
7.8
|
|
|
8.3
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(6.1)
|
|
|
1.0
|
|
|
(10.2)
|
|
|
(6.4)
|
|
Adjusted
EBITDA
|
$
|
186.8
|
|
|
$
|
141.5
|
|
|
$
|
658.9
|
|
|
$
|
503.2
|
|
(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.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
SEGMENT ADJUSTED
EBITDA(14)
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
55.0
|
|
|
$
|
42.8
|
|
|
$
|
179.6
|
|
|
$
|
183.2
|
|
Less: Other expense,
net
|
3.2
|
|
|
2.2
|
|
|
7.2
|
|
|
17.1
|
|
Less: Non-cash
pension settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.5)
|
|
|
(1.2)
|
|
|
(2.9)
|
|
|
(3.0)
|
|
Plus: Depreciation
and amortization expense
|
19.3
|
|
|
19.0
|
|
|
76.3
|
|
|
81.2
|
|
EBITDA
|
$
|
71.6
|
|
|
$
|
59.9
|
|
|
$
|
251.6
|
|
|
$
|
249.0
|
|
Plus: Restructuring
charges
|
3.8
|
|
|
4.2
|
|
|
18.8
|
|
|
17.3
|
|
Plus:
Acquisition-related costs
|
0.2
|
|
|
—
|
|
|
0.6
|
|
|
0.7
|
|
Plus: Non-cash asset
impairment charges
|
0.6
|
|
|
4.2
|
|
|
2.7
|
|
|
8.3
|
|
Plus: Non-cash
pension settlement charges
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(6.7)
|
|
|
1.8
|
|
|
(3.8)
|
|
|
(3.2)
|
|
Adjusted
EBITDA
|
$
|
69.5
|
|
|
$
|
71.0
|
|
|
$
|
269.9
|
|
|
$
|
273.4
|
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
55.7
|
|
|
$
|
53.3
|
|
|
$
|
184.3
|
|
|
$
|
158.3
|
|
Less: Other (income)
expense, net
|
(1.3)
|
|
|
—
|
|
|
(3.4)
|
|
|
0.7
|
|
Plus: Depreciation
and amortization expense
|
37.4
|
|
|
8.6
|
|
|
119.3
|
|
|
34.2
|
|
EBITDA
|
$
|
94.4
|
|
|
$
|
61.9
|
|
|
$
|
307.0
|
|
|
$
|
191.8
|
|
Plus: Restructuring
charges
|
1.0
|
|
|
0.1
|
|
|
6.2
|
|
|
0.4
|
|
Plus:
Acquisition-related costs
|
7.3
|
|
|
—
|
|
|
29.1
|
|
|
—
|
|
Plus: Non-cash asset
impairment charges
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
0.9
|
|
|
0.1
|
|
|
0.9
|
|
|
0.1
|
|
Adjusted
EBITDA
|
$
|
108.7
|
|
|
$
|
62.1
|
|
|
$
|
348.3
|
|
|
$
|
192.3
|
|
Flexible
Products & Services
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
3.1
|
|
|
$
|
5.4
|
|
|
$
|
25.3
|
|
|
$
|
19.4
|
|
Less: Other (income)
expense, net
|
(0.3)
|
|
|
1.2
|
|
|
(1.2)
|
|
|
0.6
|
|
Plus: Depreciation
and amortization expense
|
1.5
|
|
|
1.5
|
|
|
6.2
|
|
|
6.9
|
|
EBITDA
|
$
|
4.9
|
|
|
$
|
5.7
|
|
|
$
|
32.7
|
|
|
$
|
25.7
|
|
Plus: Restructuring
charges
|
1.0
|
|
|
0.5
|
|
|
1.0
|
|
|
0.9
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(0.1)
|
|
|
(0.9)
|
|
|
(5.1)
|
|
|
(1.0)
|
|
Adjusted
EBITDA
|
$
|
5.8
|
|
|
$
|
5.3
|
|
|
$
|
28.6
|
|
|
$
|
25.6
|
|
Land
Management
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
1.9
|
|
|
$
|
1.8
|
|
|
$
|
9.9
|
|
|
$
|
9.6
|
|
Plus: Depreciation,
depletion and amortization expense
|
1.1
|
|
|
1.3
|
|
|
4.3
|
|
|
4.6
|
|
EBITDA
|
$
|
3.0
|
|
|
$
|
3.1
|
|
|
$
|
14.2
|
|
|
$
|
14.2
|
|
Plus: Restructuring
charges
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Less: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(0.2)
|
|
|
—
|
|
|
(2.2)
|
|
|
(2.3)
|
|
Adjusted
EBITDA
|
$
|
2.8
|
|
|
$
|
3.1
|
|
|
$
|
12.1
|
|
|
$
|
11.9
|
|
Consolidated
EBITDA
|
$
|
173.9
|
|
|
$
|
130.6
|
|
|
$
|
605.5
|
|
|
$
|
480.7
|
|
Consolidated Adjusted
EBITDA
|
$
|
186.8
|
|
|
$
|
141.5
|
|
|
$
|
658.9
|
|
|
$
|
503.2
|
|
(14)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(15)
UNAUDITED
|
|
|
|
|
|
Three months ended
October 31,
|
|
Twelve months
ended October 31,
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash provided
by operating activities
|
$
|
195.4
|
|
|
$
|
197.2
|
|
|
$
|
389.5
|
|
|
$
|
253.0
|
|
Cash paid for
purchases of properties, plants and equipment
|
(53.0)
|
|
|
(48.2)
|
|
|
(156.8)
|
|
|
(140.2)
|
|
Free Cash
Flow
|
$
|
142.4
|
|
|
$
|
149.0
|
|
|
$
|
232.7
|
|
|
$
|
112.8
|
|
Cash paid for
acquisition-related costs
|
7.5
|
|
|
—
|
|
|
29.7
|
|
|
0.7
|
|
Cash paid for debt
issuance costs(16)
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Additional U.S.
pension contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
65.0
|
|
Cash paid for
acquisition-related ERP systems(17)
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Adjusted Free Cash
Flow
|
$
|
150.2
|
|
|
$
|
149.0
|
|
|
$
|
267.8
|
|
|
$
|
178.5
|
|
(15)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, plus cash paid for acquisition-related ERP systems, less
cash paid for purchases of properties, plants and
equipment.
|
(16)Cash
paid for debt issuance costs is defined as cash payments for debt
issuance related expenses included within net cash used in
operating activities.
|
(17)Cash
paid for acquisition-related ERP systems is defined as capital
expenditures for the integration of Caraustar into Grief's global
Enterprise Resource Planning System.
|
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
Expense and
Equity
Earnings of
Unconsolidated
Affiliates, net
|
|
Income
Tax
(Benefit)
Expense
|
|
Equity
Earnings
|
|
Noncontrolling
Interest
|
|
Net Income
Attributable
to Greif, Inc.
|
|
Diluted
Class A
Earnings
Per
Share
|
Tax
Rate
|
Three months ended
October 31, 2019
|
$
|
81.7
|
|
|
$
|
12.4
|
|
|
$
|
(0.5)
|
|
|
$
|
4.8
|
|
|
$
|
65.0
|
|
|
$
|
1.09
|
|
15.2
|
%
|
(Gain) loss on
disposal of properties, plants, equipment and businesses,
net
|
(6.1)
|
|
|
(1.8)
|
|
|
—
|
|
|
—
|
|
|
(4.3)
|
|
|
(0.07)
|
|
|
Restructuring
charges
|
5.8
|
|
|
(0.1)
|
|
|
—
|
|
|
0.7
|
|
|
5.2
|
|
|
0.09
|
|
|
Non-cash asset
impairment charges
|
5.7
|
|
|
1.9
|
|
|
—
|
|
|
0.1
|
|
|
3.7
|
|
|
0.06
|
|
|
Acquisition-related
costs
|
7.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|
0.13
|
|
|
Tax net benefit
resulting from the Tax Reform Act
|
—
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
(3.7)
|
|
|
(0.06)
|
|
|
Excluding
Adjustments
|
$
|
94.6
|
|
|
$
|
16.1
|
|
|
$
|
(0.5)
|
|
|
$
|
5.6
|
|
|
$
|
73.4
|
|
|
$
|
1.24
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
October 31, 2018
|
$
|
86.4
|
|
|
$
|
42.1
|
|
|
$
|
(1.2)
|
|
|
$
|
5.4
|
|
|
$
|
40.1
|
|
|
$
|
0.67
|
|
48.6
|
%
|
(Gain) loss on
disposal of properties, plants, equipment and businesses,
net
|
1.0
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
1.5
|
|
|
0.02
|
|
|
Restructuring
charges
|
4.8
|
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
4.1
|
|
|
0.08
|
|
|
Non-cash asset
impairment charges
|
4.2
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
0.05
|
|
|
Acquisition-related
costs
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
Non-cash pension
settlement charges
|
0.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.02
|
|
|
Tax net expense
resulting from the Tax Reform Act
|
—
|
|
|
(14.2)
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
|
0.24
|
|
|
Excluding
Adjustments
|
$
|
97.3
|
|
|
$
|
28.9
|
|
|
$
|
(1.2)
|
|
|
$
|
5.3
|
|
|
$
|
64.3
|
|
|
$
|
1.08
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended October 31, 2019
|
$
|
262.0
|
|
|
$
|
70.7
|
|
|
$
|
(2.9)
|
|
|
$
|
23.2
|
|
|
$
|
171.0
|
|
|
$
|
2.89
|
|
27.0
|
%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
(10.2)
|
|
|
(2.4)
|
|
|
—
|
|
|
(2.5)
|
|
|
(5.3)
|
|
|
(0.09)
|
|
|
Restructuring
charges
|
26.1
|
|
|
4.4
|
|
|
—
|
|
|
0.8
|
|
|
20.9
|
|
|
0.36
|
|
|
Non-cash asset
impairment charges
|
7.8
|
|
|
1.9
|
|
|
—
|
|
|
0.1
|
|
|
5.8
|
|
|
0.10
|
|
|
Acquisition-related
costs
|
29.7
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|
0.43
|
|
|
Debt extinguishment
charges
|
22.0
|
|
|
5.3
|
|
|
|
|
|
|
16.7
|
|
|
0.28
|
|
|
Tax net benefit
resulting from the Tax Reform Act
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
(0.01)
|
|
|
Excluding
Adjustments
|
$
|
337.4
|
|
|
$
|
84.7
|
|
|
$
|
(2.9)
|
|
|
$
|
21.6
|
|
|
$
|
234.0
|
|
|
$
|
3.96
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended October 31, 2018
|
$
|
299.8
|
|
|
$
|
73.3
|
|
|
$
|
(3.0)
|
|
|
$
|
20.1
|
|
|
$
|
209.4
|
|
|
$
|
3.55
|
|
24.4
|
%
|
Gain on disposal of
properties, plants, equipment and businesses, net
|
(6.4)
|
|
|
(0.9)
|
|
|
—
|
|
|
(0.5)
|
|
|
(5.0)
|
|
|
(0.09)
|
|
|
Restructuring
charges
|
18.6
|
|
|
3.1
|
|
|
—
|
|
|
0.6
|
|
|
14.9
|
|
|
0.26
|
|
|
Non-cash asset
impairment charges
|
8.3
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
|
0.11
|
|
|
Acquisition-related
costs
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.01
|
|
|
Non-cash pension
settlement charges
|
1.3
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
0.02
|
|
|
Tax net benefit
resulting from the Tax Reform Act
|
—
|
|
|
19.2
|
|
|
—
|
|
|
—
|
|
|
(19.2)
|
|
|
(0.33)
|
|
|
Excluding
Adjustments
|
$
|
322.3
|
|
|
$
|
96.4
|
|
|
$
|
(3.0)
|
|
|
$
|
20.2
|
|
|
$
|
208.7
|
|
|
$
|
3.53
|
|
29.9
|
%
|
The impact of income tax expense and noncontrolling 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
October 31,
|
|
|
|
|
(in
millions)
|
2019
|
|
2018
|
|
Increase
(Decrease) in
Net Sales ($)
|
|
Increase
(Decrease) in
Net Sales (%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,232.1
|
|
|
$
|
987.7
|
|
|
$
|
244.4
|
|
|
24.7%
|
Currency
Translation
|
(13.7)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,245.8
|
|
|
$
|
987.7
|
|
|
$
|
258.1
|
|
|
26.1%
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
619.0
|
|
|
$
|
657.9
|
|
|
$
|
(38.9)
|
|
|
(5.9)%
|
Currency
Translation
|
(11.3)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
630.3
|
|
|
$
|
657.9
|
|
|
$
|
(27.6)
|
|
|
(4.2)%
|
Flexible Products
& Services
|
|
|
|
|
|
|
|
Net Sales
|
70.9
|
|
|
77.5
|
|
|
$
|
(6.6)
|
|
|
(8.5)%
|
Currency
Translation
|
(2.3)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
73.2
|
|
|
$
|
77.5
|
|
|
$
|
(4.3)
|
|
|
(5.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended October 31,
|
|
|
|
|
(in
millions)
|
2019
|
|
2018
|
|
Increase
in Net Sales
($)
|
|
Increase in Net Sales (%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
4,595.0
|
|
|
$
|
3,873.8
|
|
|
$
|
721.2
|
|
|
18.6%
|
Currency
Translation
|
(99.8)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
4,694.8
|
|
|
$
|
3,873.8
|
|
|
$
|
821.0
|
|
|
21.2%
|
Rigid Industrial
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
2,490.6
|
|
|
$
|
2,623.6
|
|
|
$
|
(133.0)
|
|
|
(5.1)%
|
Currency
Translation
|
(83.9)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
2,574.5
|
|
|
$
|
2,623.6
|
|
|
$
|
(49.1)
|
|
|
(1.9)%
|
Flexible Products
& Services
|
|
|
|
|
|
|
|
Net Sales
|
297.5
|
|
|
324.2
|
|
|
$
|
(26.7)
|
|
|
(8.2)%
|
Currency
Translation
|
(15.6)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
313.1
|
|
|
$
|
324.2
|
|
|
$
|
(11.1)
|
|
|
(3.4)%
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
PROJECTED 2020
GUIDANCE RECONCILIATION
ADJUSTED
FREE CASH FLOW
UNAUDITED
|
|
|
|
Fiscal 2020
Guidance Range
|
(in
millions)
|
Scenario
1
|
|
Scenario
2
|
Net cash provided
by operating activities
|
$
|
395.0
|
|
|
$
|
450.0
|
|
Cash paid for
purchases of properties, plants and equipment
|
(181.0)
|
|
|
(201.0)
|
|
Free cash
flow
|
$
|
214.0
|
|
|
$
|
249.0
|
|
Cash paid for
acquisition-related costs
|
10.0
|
|
|
15.0
|
|
Cash paid for
acquisition-related ERP systems
|
21.0
|
|
|
21.0
|
|
Adjusted free cash
flow
|
$
|
245.0
|
|
|
$
|
285.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
PROJECTED 2020
MODELING ASSUMPTIONS
UNAUDITED
|
|
|
(in
millions)
|
Fiscal 2020
Modeling
Assumptions
|
Depreciation &
amortization expense
|
$247 -
$257
|
Interest expense,
net
|
$119 -
$124
|
Other expense,
net
|
$2.5 -
$7.5
|
Net income
attributable to noncontrolling interest
|
$17 - $22
|
Tax rate excluding
the impact of adjustments
|
27% - 31%
|
Capital expenditures
excluding cash paid for acquisition-related ERP systems
|
$160 -
$180
|
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SOURCE Greif, Inc.