- Net sales for the fourth quarter 2014
were flat compared to the fourth quarter 2013 after eliminating the
effect of acquisitions, dispositions and currency fluctuations
- Quarterly results were positively
impacted by gains on the sale of businesses of $21.2 million and a
decrease in SG&A expenses of $2.3 million, offset by asset
impairment charges of $70.2 million and restructuring costs of $5.6
million
- EBITDA1 before special items2 of $149.2
million in fourth quarter 2014 compared to $145.7 million in fourth
quarter 2013
- Diluted Class A earnings per share
attributable to Greif, Inc. of $0.15 and $1.56 for the fourth
quarter and fiscal year 2014, respectively, compared to $0.65 and
$2.47 for the fourth quarter and fiscal year 2013, respectively.
Diluted Class A earnings per share attributable to Greif, Inc. were
$2.01 for fiscal year 2014 after eliminating the tax-effected
impact of fiscal year 2014 timberland gains and fourth quarter 2014
non-cash asset impairment charges
- Long-term debt, current portion of
long-term debt, and short-term debt decreased $171 million during
the fourth quarter 2014 primarily from the application of proceeds
from the sale of businesses
- Tax rate for 2014 was negatively
impacted by non-deductible goodwill, valuation allowances related
to non-U.S. jurisdictions, uncertain tax positions, and discrete
deferred tax adjustments
Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial
packaging products and services, today announced results for its
fourth quarter, which ended October 31, 2014:
David B. Fischer, president and chief executive officer, stated,
“During the fourth quarter we took actions to improve our business
portfolio, address underperforming assets and generate additional
cash. Specific initiatives are also being implemented in fiscal
2015 and beyond consistent with our strategy. As previously
discussed, we are in the midst of a comprehensive effort to
aggressively address our underperforming and loss-generating
operations, as well as SG&A costs. The fourth quarter 2014
results were lower than expected, primarily due to asset impairment
charges in the Flexible Products & Services segment, the
negative impact of foreign currency translation and a decrease in
selling prices. Our proceeds from divestitures and continued focus
on cash resulted in a $171 million reduction in debt during the
quarter.”
Consolidated Results
Net sales decreased 4.2 percent to $1,048.1 million for the
fourth quarter of 2014 compared with $1,094.2 million for the
fourth quarter of 2013. This decrease was primarily due to the
negative impact from foreign currency translation of 2.5 percent, a
decrease in selling prices of 0.3 percent and a decrease in volumes
of 1.4 percent. The lower selling prices were in the Paper
Packaging and Flexible Products & Services segments. Although
overall company volumes were lower, compared to volumes in the
fourth quarter of 2013, volumes in the Rigid Industrial Packaging
& Services segment increased 4.9 percent in Europe and 2.8
percent in North America, but decreased 22.5 percent in Latin
America. Volumes decreased 9.3 percent within the Flexible Products
& Services segment, primarily due to the previously reported
sale of the multiwall packaging business in August.
Gross profit was $202.9 million for the fourth quarter of 2014
compared with $226.1 million for the fourth quarter of 2013.
Declines in the Rigid Industrial Packaging & Services, Paper
Packaging, and Flexible Products & Services segments were
partially offset by an increase in the Land Management segment. The
decrease was primarily due to competitive pressures in Western
Europe, the continuing impact of the occupation of a manufacturing
facility in Turkey during the second quarter of 2014, which has
resulted in higher costs incurred to find alternative supply
sources to satisfy customers, and the net effect of acquisitions
and divestitures. Gross profit margin was 19.4 percent for the
fourth quarter of 2014 compared to 20.7 percent for the fourth
quarter of 2013.
SG&A expenses decreased 2.0 percent to $113.6 million for
the fourth quarter of 2014 from $115.9 million for the fourth
quarter of 2013. This decrease was primarily due to divestitures,
lower employee costs as a result of settlement of Brazilian labor
claims, a reduction in management compensation and lower
amortization of intangible assets, partially offset by higher
professional fees related to the sale of the multiwall packaging
business. SG&A expenses were 10.8 percent of net sales for
the fourth quarter of 2014 compared with 10.6 percent of net
sales for the fourth quarter of 2013.
Restructuring charges were $5.6 million for the fourth quarter
of 2014 compared with $2.2 million for the fourth quarter of 2013.
Charges in the fourth quarter of 2014 were primarily related to
employee separation costs in the Flexible Products & Services
segment and within the European operations of the Rigid Industrial
Packaging & Services segment.
Operating profit was $37.5 million for the fourth quarter of
2014 compared with $97.9 million for the fourth quarter of 2013.
The $60.4 million decrease consisted of a $1.7 million increase in
the Paper Packaging segment, a $43.6 million decrease in the
Flexible Products & Services segment, a $14.4 million decrease
in the Land Management segment, and a $4.1 million decrease in the
Rigid Industrial Packaging & Services segment. Factors
contributing to the $60.4 million decrease were lower gross profit
as discussed above, the $3.4 million increase in restructuring
charges and the $43.3 million increase in non-cash asset impairment
charges along with no timberland sales (resulting in no gains)
during the fourth quarter 2014. These factors were partially offset
by $21.2 million of net gains on divestitures and the $2.3 million
decrease in SG&A expenses discussed above. Operating profit
before special items2 was $113.7 million for the fourth quarter of
2014 compared with $109.8 million for the fourth quarter of
2013.
EBITDA was $73.0 million for the fourth quarter of 2014 compared
with $133.8 million for the fourth quarter of 2013. The $60.8
million decrease was primarily due to the same factors that
impacted operating profit. EBITDA before special items2 was $149.2
million for the fourth quarter of 2014 versus $145.7 million for
the fourth quarter of 2013. Depreciation, depletion and
amortization expense was $38.4 million for the fourth quarter of
2014 compared with $39.2 million for the fourth quarter of
2013.
Cash provided by operating activities was $145.0 million for the
fourth quarter of 2014 compared with $131.6 million for the fourth
quarter of 2013. Free cash flow3 was $194.7 million for the
fourth quarter of 2014 compared with free cash flow of
$98.8 million for the fourth quarter of 2013. The increase in
free cash flow was due to the sale of select non-core assets and
the improvement of cash generated by operations.
Interest expense, net, was $20.3 million for the fourth quarter
of 2014 compared with $21.6 million for the fourth quarter of
2013. The decrease was the result of lower average outstanding
debt.
Income tax expense was $50.8 million and $39.2 million for the
fourth quarters of 2014 and 2013, respectively. Income tax expense
for the fiscal year 2014 was $115.0 million compared with $98.8
million for fiscal year 2013. The company’s annual effective tax
rate was 72.8 percent for 2014 compared with 40.6 percent for 2013.
The company’s 2014 annual effective tax rate was impacted by, among
other factors, non-deductible goodwill (15.6%), valuation
allowances related to non-U.S. jurisdictions (18.7%), uncertain tax
positions (7.2%) and discrete deferred tax adjustments (1.6%).
Net income attributable to Greif, Inc. for the fourth quarter of
2014 was $8.7 million or $0.15 per diluted Class A share and $0.22
per diluted Class B share versus net income attributable to Greif,
Inc. for the fourth quarter of 2013 of $38.0 million, or $0.65 per
diluted Class A share and $0.97 per diluted Class B share.
Segment Results
Rigid Industrial Packaging &
Services
Net sales decreased 3.8 percent to $752.7 million for the fourth
quarter of 2014 compared with $782.1 million for the fourth quarter
of 2013. The decrease in net sales was attributable to a negative
3.2 percent impact of foreign currency translation and volume
decreases of 1.0 percent, partially offset by net price increases
of 0.4 percent. The volumes in the Rigid Industrial Packaging &
Services segment increased 4.9 percent in Europe and 2.8 percent in
North America, and decreased 22.5 percent in Latin America.
Gross profit was $136.4 million for the fourth quarter of 2014
compared with $149.6 million for the fourth quarter of 2013. The
$13.2 million decrease in gross profit was primarily due to
competitive pressures in Western Europe and increased
transportation and labor costs. Gross profit margin decreased to
18.1 percent for the fourth quarter of 2014 from 19.1 percent for
the fourth quarter of 2013.
Operating profit was $46.7 million for the fourth quarter of
2014 compared with $50.8 million for the fourth quarter of 2013.
The $4.1 million decrease was primarily due to the same factors
that impacted the segment’s gross profit partially offset by a
decrease in amortization of intangible assets due to the sale of
businesses and lower employee costs. Operating profit before
special items was $54.8 million for the fourth quarter of 2014
versus $69.3 million for the fourth quarter of 2013.
EBITDA was $71.2 million for the fourth quarter of 2014 compared
with $75.3 million for the fourth quarter of 2013. EBITDA before
special items was $79.3 million for the fourth quarter of 2014
compared with $93.8 million for the fourth quarter of 2013.
Depreciation, depletion and amortization expense was $27.3 million
for the fourth quarter of 2014 compared with $26.7 million for the
fourth quarter of 2013.
Paper Packaging
Net sales decreased 2.0 percent to $186.6 million for the fourth
quarter of 2014 compared with $190.4 million for the fourth quarter
of 2013. The decrease was attributable to lower selling prices of
1.4 percent and lower volumes of 0.6 percent.
Gross profit was $51.8 million for the fourth quarter of 2014
compared with $53.3 million for the fourth quarter of 2013. This
decrease was due to the same factors that impacted the segment’s
net sales and increased transportation costs. Gross profit margin
decreased to 27.8 percent for the fourth quarter of 2014 from 28.0
percent for the fourth quarter of 2013.
Operating profit and operating profit before special items were
$41.4 million for the fourth quarter of 2014 compared with $39.7
million for the fourth quarter of 2013. The $1.7 million increase
was due to the $4.2 million gain on the sale of a business,
partially offset by increased transportation costs.
EBITDA and EBITDA before special items were $48.6 million for
the fourth quarter of 2014 compared with $47.3 million for the
fourth quarter of 2013. This increase was due to the same factors
that impacted the segment’s operating profit. Depreciation,
depletion and amortization expense was $7.2 million for the fourth
quarter of 2014 compared with $7.6 million for the fourth quarter
of 2013.
Flexible Products &
Services
Net sales decreased 12.6 percent to $100.0 million for the
fourth quarter of 2014 compared with $114.4 million for the fourth
quarter of 2013. The decrease was attributable to volume decreases
of 9.3 percent primarily due to reduced sales of $13 million as a
result of the sale of the multiwall packaging business and due to
lost sales attributable to the impact of the occupation of a
manufacturing facility in Turkey during the second quarter of 2014.
The impact of foreign currency translation for the fourth quarter
of 2014 was a negative 2.8 percent compared with the fourth quarter
of 2013.
Gross profit was $10.8 million for the fourth quarter of 2014
compared with $20.2 million for the fourth quarter of 2013. The
decrease in gross profit was primarily due to the continuing impact
of the occupation of a manufacturing facility in Turkey during the
second quarter of 2014, which has resulted in higher costs incurred
to find alternative supply sources to satisfy customers, and the
sale of the multiwall packaging business. Gross profit margin
decreased to 10.8 percent for the fourth quarter of 2014 from 17.7
percent for the fourth quarter of 2013.
Operating loss was $56.2 million for the fourth quarter of 2014
compared with an operating loss of $12.6 million for the fourth
quarter of 2013. This increase in operating loss was primarily
related to non-cash asset impairment charges related to the closure
of the fabric hub in Saudi Arabia and to goodwill related to the
segment, partially offset by the gain on the sale of the multiwall
packaging business. Operating profit before special items was $11.9
million for the fourth quarter of 2014 versus operating loss before
special items of $1.9 million for the fourth quarter of 2013.
EBITDA was negative $53.7 million for the fourth quarter of 2014
compared with negative $9.7 million for the fourth quarter of 2013.
This decrease was due to the same factors that impacted the
segment’s operating loss. EBITDA before special items was $14.4
million for the fourth quarter of 2014 compared with $1.0 million
for the fourth quarter of 2013. Depreciation, depletion and
amortization expense was $2.6 million for the fourth quarter of
2014 compared with $4.0 million for the fourth quarter of 2013.
Land Management
Net sales increased 20.5 percent to $8.8 million for the fourth
quarter of 2014 compared with $7.3 million for the fourth quarter
of 2013. The increase was due to higher timber sales as planned for
the fourth quarter of 2014.
Operating profit decreased to $5.6 million for the fourth
quarter of 2014 from $20.0 million for the fourth quarter of 2013.
This decrease was primarily due to no timberland gains (due to no
timberland sales) in the fourth quarter of 2014 compared to $17.3
million of timberland gains in the fourth quarter of 2013. The
fourth quarter of 2013 timberland gains resulted from the sale of
timberland in the first phase of an approximately $90 million
multi-phase sales contract. The company closed the last phase of
sales under this contract in the first quarter of 2015. Operating
profit before special items was $5.6 million for the fourth quarter
of 2014 compared with $2.7 million for the fourth quarter of 2013.
Special use property disposals included in operating profit were
$2.8 million for the fourth quarter of 2014 versus $0.7 million for
the fourth quarter of 2013.
EBITDA was $6.9 million and $20.9 million for the fourth
quarters of 2014 and 2013, respectively. This decrease was due to
the timberland gain in 2013 previously mentioned. EBITDA before
special items was $6.9 million for the fourth quarter of 2014
compared with $3.6 million for the fourth quarter of 2013.
Depreciation, depletion and amortization expense was $1.3 million
and $0.9 million for the fourth quarters of 2014 and 2013,
respectively.
Other Financial Information
Long-term debt was $1,087.4 million at October 31, 2014 compared
with $1,207.2 million at Oct. 31, 2013. The decrease in long-term
debt was primarily due to the application of proceeds from the sale
of three businesses in the Rigid Industrial Packaging &
Services segment, one business in the Paper Packaging segment, and
the multiwall packaging business in the Flexible Products &
Services segment to debt reduction, partially offset by debt
incurred for the funding of two acquisitions completed in the first
quarter of 2014.
Capital expenditures were $43.9 million for the fourth quarter
of 2014 compared with $53.8 million for fourth quarter of 2013.
There were $1.1 million of timberland purchases for the fourth
quarter of 2014 compared with $8.5 million of timberland purchases
for the fourth quarter of 2013. Depreciation, depletion and
amortization expense was $38.4 million for the fourth quarter of
2014 compared with $39.2 million for the fourth quarter of
2013.
On December 9, 2014, the Board of Directors declared quarterly
cash dividends of $0.42 per share of Class A Common Stock and $0.62
per share of Class B Common Stock. These dividends were payable on
January 1, 2015, to stockholders of record at close of business on
December 19, 2014.
Company Outlook
The company anticipates the overall global economy to reflect a
modest recovery in fiscal 2015, with positive aspects of the
improving economy in the United States being offset by the negative
trends in other regions, particularly in Europe and Latin America.
We anticipate that foreign currency matters will continue to
present challenges for the company, as the strengthening of the
United States dollar against other currencies will continue to
impact the company’s revenues and net income. During the fourth
quarter, the company sold several businesses and plans to continue
to accelerate restructuring plans and facility closures and pursue
the sale of select non-core assets as part of our overall strategic
transformation. We also plan to implement SG&A cost savings
actions throughout 2015 and beyond. We will provide more
information about our strategic transformation and SG&A actions
in our upcoming Investor Day, to be held on January 21st. Based on
these factors, fiscal 2015 adjusted Class A earnings per share is
expected to be in the range of $2.25 to $2.35, excluding gains and
losses on the sales of businesses, timberland and property, plant
and equipment, and acquisition related costs, as well as
restructuring and impairment charges.
Selected Financial Highlights
(Dollars in millions, except share
amounts)
Three months ended Twelve months ended
October 31, October 31,
Selected Financial
Highlights
2014
2013 4
2014
2013 4
Net sales $ 1,048.1 $ 1,094.2 $ 4,239.1 $ 4,219.9 Operating profit
37.5 97.9 249.3 341.6 Operating profit before special items 113.7
109.8 335.7 361.3 EBITDA 73.0 133.8 395.6 486.1 EBITDA before
special items 149.2 145.7 482.0 505.8 Cash provided by operating
activities 145.0 131.6 261.8 250.3 Net income attributable to
Greif, Inc. 8.7 38.0 91.5 144.7 Diluted Class A earnings per share
attributable to Greif, Inc. $ 0.15 $ 0.65 $ 1.56 $ 2.47
Special
items
Restructuring charges $ (5.6 ) $ (2.2 ) $ (16.1 ) $ (4.8 )
Acquisition-related costs (0.4 ) (0.1 ) (1.6 ) (0.8 ) Debt
extinguishment charges - - - (1.3 ) Timberland gains - 17.3 17.1
17.3 Non-cash asset impairment charges (70.2 ) (26.9
) (85.8 ) (31.4 ) Total special items (76.2 )
(11.9 ) (86.4 ) (21.0 ) Total special items,
net of tax 41.3 6.5 47.1
12.4
Impact of total special items, net of tax,
on diluted Class A earnings per share attributable to Greif,
Inc.
$ 0.70 $ 0.11 $ 0.80 $ 0.22
October 31, 2014 October 31, 2013 Working capital 5 $
303.0 $ 290.9 Net working capital
5 217.9 212.8 Long-term
debt 1,087.4 1,207.2 Net debt 6 1,068.0 1,203.2
Conference Call
The company will host a conference call to discuss the fourth
quarter of 2014 results on January 15, 2015, at 10 a.m.
Eastern Time (ET). To participate, domestic callers should call
877-485-3107 and ask for the Greif conference call. The number for
international callers is +1 201-689-8427. Phone lines will open at
9:50 a.m. ET. The conference call will also be available through a
live webcast, including slides, which can be accessed at
www.greif.com in the Investor Center/Conference Calls. A replay of
the conference call will be available on the company’s website
approximately one hour following the call.
Greif is hosting an Investor Day on Wednesday, January 21, 2015
from 9:00AM – 12 noon ET with a continental breakfast beginning at
8:15AM. The location is The Michelangelo Hotel, 152 West 51st
Street, New York, NY 10019. This event will provide investors the
opportunity to learn more about Greif’s strategy, including Q&A
with members of the executive team. Please visit www.Greif.com in
the investors section to learn more about this conference. Space is
limited, Please RSVP to Lisa Jackson at lisa.jackson@greif.com.
About Greif
Greif is a world leader in industrial packaging products and
services. The company produces steel, plastic, fibre, flexible and
corrugated containers and containerboard, and provides
reconditioning, blending, filling and packaging services for a wide
range of industries. Greif also manages timber properties in North
America. The company is strategically positioned in more than 50
countries to serve global as well as regional customers. Additional
information is on the company's website at www.greif.com.
Forward-Looking Statements
All statements, other than statements of historical facts,
included in this news release, including without limitation
statements regarding our future financial position, business
strategy, budgets, projected costs, goals and plans and objectives
of management for future operations, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as “may,” “will,”
“expect,” “intend,” “estimate,” “anticipate,” “project,” “believe,”
“continue,” “on track” or “target” or the negative thereof or
variations thereon or similar terminology. All forward-looking
statements made in this news release are based on information
currently available to management.
Although we believe that the expectations reflected in
forward-looking statements have a reasonable basis, we can give no
assurance that these expectations will prove to be correct.
Forward-looking statements are subject to risks and uncertainties
that could cause actual events or results to differ materially from
those 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) the current and future challenging
global economy may adversely affect our business, (ii)
historically, our business has been sensitive to changes in general
economic or business conditions, (iii) our operations are subject
to currency exchange and political risks that could adversely
affect our results of operations, (iv) the continuing consolidation
of our customer base and suppliers may intensify pricing pressure,
(v) we operate in highly competitive industries, (vi) our business
is sensitive to changes in industry demands, (vii) raw material and
energy price fluctuations and shortages may adversely impact our
manufacturing operations and costs, (viii) we may encounter
difficulties arising from acquisitions, (ix) we may incur
additional restructuring costs and there is no guarantee that our
efforts to reduce costs will be successful, (x) tax legislation
initiatives or challenges to our tax positions may adversely impact
our results or condition, (xi) several operations are conducted by
joint ventures that we cannot operate solely for our benefit, (xii)
our ability to attract, develop and retain talented and qualified
employees, managers and executives is critical to our success,
(xiii) our business may be adversely impacted by work stoppages and
other labor relations matters, (xiv) we may be subject to losses
that might not be covered in whole or in part by existing insurance
reserves or insurance coverage, (xv) our business depends on the
uninterrupted operations of our facilities, systems and business
functions, including our information technology and other business
systems, (xvi) legislation/regulation related to climate change and
environmental and health and safety matters and corporate social
responsibility could negatively impact our operations and financial
performance, (xvii) product liability claims and other legal
proceedings could adversely affect our operations and financial
performance, (xviii) 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, (xix) changing climate
conditions may adversely affect our operations and financial
performance, (xx) the frequency and volume of our timber and
timberland sales will impact our financial performance, (xxi)
changes in U.S. generally accepted accounting principles and SEC
rules and regulations could materially impact our reported results,
and (xxii) 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. Changes in business results may
impact our book tax rates. 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
projected, 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.
GREIF, INC. AND SUBSIDIARY
COMPANIES
CONSOLIDATED STATEMENTS OF
INCOME
UNAUDITED
(Dollars and shares in millions, except
per share amounts)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 7
2014
2013 7
Net sales $ 1,048.1 $ 1,094.2 $ 4,239.1 $ 4,219.9 Cost of
products sold 845.2 868.1
3,428.1 3,387.7 Gross profit 202.9 226.1 811.0
832.2 Selling, general and administrative expenses 113.6
115.9 496.7 477.3 Restructuring charges 5.6 2.2 16.1 4.8 Timberland
gains - (17.3 ) (17.1 ) (17.3 ) Non-cash asset impairment charges
70.2 26.9 85.8 31.4 (Gain) loss on disposal of properties, plants,
equipment and businesses, net (24.0 ) 0.5
(19.8 ) (5.6 ) Operating profit 37.5 97.9 249.3 341.6
Interest expense, net 20.3 21.6 81.8 83.8 Debt
extinguishment charges - - - 1.3 Other expense, net 2.9
3.3 9.5 13.1
Income before income tax expense and equity earnings of
unconsolidated affiliates, net 14.3 73.0 158.0 243.4 Income
tax expense 50.8 39.2 115.0 98.8 Equity earnings of unconsolidated
affiliates, net of tax 1.0 1.4
1.9 2.9 Net income (35.5 ) 35.2 44.9 147.5 Net
(income) loss attributable to noncontrolling interests 44.2
2.8 46.6 (2.8 ) Net
income attributable to Greif, Inc. $ 8.7 $ 38.0 $
91.5 $ 144.7
Basic earnings per share
attributable to Greif, Inc. common shareholders: Class A Common
Stock $ 0.15 $ 0.65 $ 1.56 $ 2.47 Class B Common Stock $ 0.22 $
0.97 $ 2.33 $ 3.70
Diluted earnings per share
attributable to Greif, Inc. common shareholders: Class A Common
Stock $ 0.15 $ 0.65 $ 1.56 $ 2.47 Class B Common Stock $ 0.22 $
0.97 $ 2.33 $ 3.70
Shares used to calculate basic
earnings per share attributable to Greif, Inc. common
shareholders: Class A Common Stock 25.5 25.4 25.5 25.4 Class B
Common Stock 22.1 22.1 22.1 22.1
Shares used to calculate
diluted earnings per share attributable to Greif, Inc. common
shareholders: Class A Common Stock 25.5 25.4 25.5 25.4 Class B
Common Stock 22.1 22.1 22.1 22.1
GREIF, INC. AND SUBSIDIARY
COMPANIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
UNAUDITED
(Dollars in millions)
October 31, 2014
October 31, 2013 8
ASSETS CURRENT ASSETS Cash and cash
equivalents $ 85.1 $ 78.1 Trade accounts receivable 501.3 481.9
Inventories 381.1 374.4 Current portion related party notes
receivable 0.2 2.8 Other current assets 187.0 163.1
1,154.7 1,100.3 LONG-TERM ASSETS Goodwill
880.2 998.4 Intangible assets 166.5 185.2 Related party note
receivable - 12.6 Assets held by special purpose entities 50.9 50.9
Other long-term assets 122.1 142.1 1,219.7
1,389.2 PROPERTIES, PLANTS AND EQUIPMENT
1,293.0 1,397.2 $ 3,667.4 $ 3,886.7
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT
LIABILITIES Accounts payable $ 471.1 $ 431.3 Short-term borrowings
48.1 64.1 Current portion of long-term debt 17.6 10.0 Other current
liabilities 314.9 304.0 851.7 809.4
LONG-TERM LIABILITIES Long-term debt 1,087.4 1,207.2
Liabilities held by special purpose entities 43.3 43.3 Other
long-term liabilities 461.8 446.9 1,592.5
1,697.4 SHAREHOLDERS’ EQUITY 1,223.2
1,379.9 $ 3,667.4 $ 3,886.7
GREIF, INC. AND SUBSIDIARY
COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 9
2014
2013 9
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ (35.5 ) $ 35.2 $
44.9 $ 147.5 Depreciation, depletion and amortization 38.4 39.2
155.8 157.6 Asset impairments 70.2 29.5 85.8 34.0 Other non-cash
adjustments to net income (10.0 ) (13.9 ) (29.5 ) (16.0 ) Working
capital changes 76.5 34.2 (5.1 ) (75.3 )
Increase (decrease) in cash from changes
in certain assets and liabilities and other
5.4 7.4 9.9 2.5
Net cash provided by operating activities 145.0
131.6 261.8 250.3
CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of
companies, net of cash acquired - - (53.5 ) -
Purchases of properties, plants, equipment
and timberland
(45.0 ) (62.3 ) (194.7 ) (145.4 ) Proceeds from the sale of
properties, plants, equipment, businesses, timberland and other
assets 94.7 29.5 164.9 41.5 Payments on notes receivable with
related party, net 13.0 0.6 14.3 3.2 Other 0.0
0.0 - - Net cash used in
investing activities 62.7 (32.2 ) (69.0
) (100.7 ) CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (payments on) debt, net (157.7 ) (46.5 ) (88.3 )
(12.9 ) Payment of deferred purchase price related to acquisitions
- (46.6 ) - (46.6 ) Dividends paid (24.8 ) (24.7 ) (98.6 ) (98.3 )
Other (1.2 ) 0.1 6.4 (2.1
) Net cash provided by (used in) financing activities (183.7
) (117.7 ) (180.5 ) (159.9 )
EFFECTS OF EXCHANGE RATES ON CASH:
(3.9 ) 1.5 (5.3 ) (3.1 ) Net increase (decrease) in cash and cash
equivalents 20.1 (16.8 ) 7.0 (13.4 ) Cash and cash equivalents at
beginning of the period 65.0 94.9
78.1 91.5 Cash and cash equivalents at
end of the period $ 85.1 $ 78.1 $ 85.1 $ 78.1
GREIF, INC. AND SUBSIDIARY
COMPANIES
FINANCIAL HIGHLIGHTS BY SEGMENT
UNAUDITED
(Dollars in millions)
Three months ended Twelve months
ended October 31, October 31, 2014
2013 10
2014
2013 10
Net sales: Rigid Industrial Packaging & Services
$ 752.7 $ 782.1 $ 3,077.0 $ 3,062.1 Paper Packaging 186.6 190.4
706.8 676.0 Flexible Products & Services 100.0 114.4 425.8
448.7 Land Management 8.8 7.3
29.5 33.1 Total net sales $ 1,048.1 $
1,094.2 $ 4,239.1 $ 4,219.9
Operating profit (loss): Rigid Industrial Packaging &
Services $ 46.7 $ 50.8 $ 170.1 $ 196.8 Paper Packaging 41.4 39.7
125.8 123.8 Flexible Products & Services (56.2 ) (12.6 ) (78.6
) (11.7 ) Land Management 5.6 20.0
32.0 32.7 Total operating profit $ 37.5
$ 97.9 $ 249.3 $ 341.6
EBITDA 11: Rigid Industrial Packaging &
Services $ 71.2 $ 75.3 $ 271.7 $ 295.3 Paper Packaging 48.6 47.3
155.6 154.3 Flexible Products & Services (53.7 ) (9.7 ) (68.0 )
(0.9 ) Land Management 6.9 20.9
36.3 37.4 Total EBITDA $ 73.0 $ 133.8
$ 395.6 $ 486.1
GREIF, INC. AND SUBSIDIARY
COMPANIES
SPECIAL ITEMS BY SEGMENT
UNAUDITED
(Dollars in millions)
Three months ended Twelve months
ended October 31, October 31, 2014
2013 12
2014
2013 12
Rigid Industrial Packaging & Services Restructuring
charges $ 3.8 $ 2.3 $ 9.6 $ 4.3 Acquisition-related costs 0.4 0.1
1.6 0.8 Debt extinguishment charges - - - 0.9 Non-cash asset
impairment charges 3.9 16.1 11.6
18.9 Total special Items 8.1 18.5 22.8 24.9
Paper Packaging Debt extinguishment charges - - - 0.2
Non-cash asset impairment charges - - -
1.6 Total special Items - - - 1.8
Flexible Products & Services Restructuring charges 1.8
(0.1 ) 6.5 0.5 Debt extinguishment charges - - - 0.2 Non-cash asset
impairment charges 66.3 10.8 74.2
10.9 Total special Items 68.1 10.7 80.7 11.6
Land Management Timberland gains -
(17.3 ) (17.1 ) (17.3 ) Total special Items -
(17.3 ) (17.1 ) (17.3 )
Total special Items
$ 76.2 $ 11.9 $ 86.4 $ 21.0
GREIF, INC. AND SUBSIDIARY
COMPANIES
NET WORKING CAPITAL AND NET
DEBT
UNAUDITED
(Dollars in millions)
October 31, 2014
October 31, 2013 13 Current assets $ 1,154.7 $
1,100.3 Less: current liabilities 851.7 809.4 Working
capital 303.0 290.9 Less: cash and cash equivalents 85.1
78.1 Net working capital $ 217.9 $ 212.8 Long-term
debt $ 1,087.4 $ 1,207.2 Plus: current portion of long-term debt
17.6 10.0 Plus: short-term borrowings 48.1 64.1 Less: cash and cash
equivalents 85.1 78.1 Net debt $ 1,068.0 $ 1,203.2
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED EBITDA14
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 15
2014
2013 15
Net income $ (35.5 ) $ 35.2 $ 44.9 $ 147.5 Plus: interest
expense, net 20.3 21.6 81.8 85.1 Plus: income tax expense 50.8 39.2
115.0 98.8 Plus: depreciation, depletion and amortization expense
38.4 39.2 155.8 157.6 Less: equity earnings of unconsolidated
affiliates, net of tax 1.0 1.4
1.9 2.9 EBITDA $ 73.0 $ 133.8 $ 395.6 $
486.1 Net income $ (35.5 ) $ 35.2 $ 44.9 $ 147.5
Plus: interest expense, net 20.3 21.6 81.8 85.1 Plus: income tax
expense 50.8 39.2 115.0 98.8 Plus: other expense, net 2.9 3.3 9.5
13.1 Less: equity earnings of unconsolidated affiliates, net of tax
1.0 1.4 1.9 2.9
Operating profit 37.5 97.9 249.3 341.6 Less: other expense, net 2.9
3.3 9.5 13.1 Plus: depreciation, depletion and amortization expense
38.4 39.2 155.8 157.6
EBITDA $ 73.0 $ 133.8 $ 395.6 $ 486.1
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT EBITDA16
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 17
2014
2013 17
Rigid Industrial Packaging & Services Operating profit $
46.7 $ 50.8 $ 170.1 $ 196.8 Less: other expense, net 2.8 2.2 6.8
8.9 Plus: depreciation and amortization expense 27.3
26.7 108.4 107.4 EBITDA $
71.2 $ 75.3 $ 271.7 $ 295.3
Paper Packaging Operating
profit $ 41.4 $ 39.7 $ 125.8 $ 123.8 Less: other (income) expense,
net - - - (0.2 ) Plus: depreciation and amortization expense
7.2 7.6 29.8 30.3
EBITDA $ 48.6 $ 47.3 $ 155.6 $ 154.3
Flexible Products
& Services Operating profit (loss) $ (56.2 ) $ (12.6 ) $
(78.6 ) $ (11.7 ) Less: other expense, net 0.1 1.1 2.7 4.4 Plus:
depreciation and amortization expense 2.6 4.0
13.3 15.2 EBITDA $ (53.7 ) $
(9.7 ) $ (68.0 ) $ (0.9 )
Land Management Operating
profit $ 5.6 $ 20.0 $ 32.0 $ 32.7 Plus: depreciation, depletion and
amortization expense 1.3 0.9 4.3
4.7 EBITDA $ 6.9 $ 20.9 $ 36.3
$ 37.4 Consolidated EBITDA $ 73.0 $
133.8 $ 395.6 $ 486.1
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
FREE CASH FLOW18
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 19
2014
2013 19
Net cash provided by operating activities $ 145.0 $
131.6 $ 261.8 $ 250.3 Less: Purchases of properties, plants,
equipment and timber properties (45.0 ) (62.3 ) (194.7 ) (145.4 )
Less: Acquisitions on companies, net of cash acquired - - (53.5 ) -
Plus: Proceeds from sales of properties, plants, equipment,
timberland, businesses and other assets 94.7
29.5 164.9 41.5
Free Cash
Flows $ 194.7 $ 98.8 $ 178.5 $ 146.4
GREIF, INC. AND SUBSIDIARY
COMPANIES
GEOGRAPHIC DATA
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 20
2014
2013 20
Net sales: North America $ 514.9 $ 522.5 $ 2,011.5 $
1,945.6 Europe, Middle East and Africa 376.4 400.0 1,596.2 1,610.6
Asia Pacific and Latin America 156.8 171.7
631.4 663.7 Total net sales $
1,048.1 $ 1,094.2 $ 4,239.1 $ 4,219.9
Operating profit: North America $ 106.2 $ 82.0 $
257.1 $ 242.1 Europe, Middle East and Africa (76.6 ) 10.4 (31.6 )
83.9 Asia Pacific and Latin America 7.9 5.5
23.8 15.6 Total operating profit
$ 37.5 $ 97.9 $ 249.3 $ 341.6
Notes: The North America region includes businesses from
Rigid Industrial Packaging & Services, Paper Packaging,
Flexible Products & Services and Land Management. The
Europe, Middle East and Africa region includes businesses from
Rigid Industrial Packaging & Services and Flexible Products
& Services. The Asia Pacific and Latin America region
includes businesses from Rigid Industrial Packaging & Services
and Flexible Products & Services.
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT OPERATING PROFIT (LOSS) BEFORE
SPECIAL ITEMS
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 21
2014
2013 21
Operating profit (loss): Rigid Industrial Packaging
& Services $ 46.7 $ 50.8 $ 170.1 $ 196.8 Paper Packaging 41.4
39.7 125.8 123.8 Flexible Products & Services (56.2 ) (12.6 )
(78.6 ) (11.7 ) Land Management 5.6 20.0
32.0 32.7 Total operating profit
(loss) 37.5 97.9 249.3
341.6
Restructuring charges: Rigid Industrial
Packaging & Services 3.8 2.3 9.6 4.3 Flexible Products &
Services 1.8 (0.1 ) 6.5
0.5 Total restructuring charges 5.6 2.2
16.1 4.8
Acquisition-related
costs: Rigid Industrial Packaging & Services 0.4
0.1 1.6 0.8 Total
acquisition-related costs 0.4 0.1
1.6 0.8
Timberland gains: Land
Management - (17.3 ) (17.1 )
(17.3 ) Total timberland gains - (17.3 )
(17.1 ) (17.3 )
Non-cash asset impairment
charges: Rigid Industrial Packaging & Services 3.9 16.1
11.6 18.9 Paper Packaging - - - 1.6 Flexible Products &
Services 66.3 10.8 74.2
10.9 Total non-cash asset impairment charges
70.2 26.9 85.8 31.4
Operating profit (loss) before special items
22: Rigid Industrial Packaging & Services 54.8
69.3 192.9 220.8 Paper Packaging 41.4 39.7 125.8 125.4 Flexible
Products & Services 11.9 (1.9 ) 2.1 (0.3 ) Land Management
5.6 2.7 14.9 15.4
Total operating profit (loss) before special items $ 113.7
$ 109.8 $ 335.7 $ 361.3
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT EBITDA BEFORE SPECIAL
ITEMS
UNAUDITED
(Dollars in millions)
Three months ended Twelve months ended
October 31, October 31, 2014
2013 23
2014
2013 23
EBITDA 24: Rigid Industrial Packaging
& Services $ 71.2 $ 75.3 $ 271.7 $ 295.3 Paper Packaging 48.6
47.3 155.6 154.3 Flexible Products & Services (53.7 ) (9.7 )
(68.0 ) (0.9 ) Land Management 6.9 20.9
36.3 37.4 Total EBITDA 73.0
133.8 395.6 486.1
Restructuring charges: Rigid Industrial Packaging &
Services 3.8 2.3 9.6 4.3 Flexible Products & Services
1.8 (0.1 ) 6.5 0.5 Total
restructuring charges 5.6 2.2
16.1 4.8
Acquisition-related costs:
Rigid Industrial Packaging & Services 0.4
0.1 1.6 0.8 Total
acquisition-related costs 0.4 0.1
1.6 0.8
Timberland gains: Land
Management - (17.3 ) (17.1 )
(17.3 ) Total timberland gains - (17.3 )
(17.1 ) (17.3 )
Non-cash asset impairment
charges: Rigid Industrial Packaging & Services 3.9 16.1
11.6 18.9 Paper Packaging - - - 1.6 Flexible Products &
Services 66.3 10.8 74.2
10.9 Total non-cash asset impairment charges
70.2 26.9 85.8 31.4
EBITDA before special items 25: Rigid
Industrial Packaging & Services 79.3 93.8 294.5 319.3 Paper
Packaging 48.6 47.3 155.6 155.9 Flexible Products & Services
14.4 1.0 12.7 10.5 Land Management 6.9 3.6
19.2 20.1 Total EBITDA before
special items $ 149.2 $ 145.7 $ 482.0 $ 505.8
GREIF, INC. AND SUBSIDIARY
COMPANIES
GAAP TO NON-GAAP RECONCILIATION
GUIDANCE EARNINGS PER SHARE
UNAUDITED
(Dollars in millions, except per share
amounts)
2014
Class
A
Class
B
Net Income Attributable to Greif $ 91.5 $ 1.56 $ 2.33 Q4 Asset
Impairments 11.7 0.20 0.29 Q4 Goodwill Impairment 25.1 0.43 0.64
2014 Timberland Gains, net of tax (10.5 )
(0.18 ) (0.26 ) Guidance Earnings Per Share $ 117.8
$ 2.01 $ 3.00 1
EBITDA is defined as net income plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated
subsidiaries, net of tax plus depreciation, depletion and
amortization. 2 A summary of all special items that are included in
operating profit before special items and in EBITDA before special
items is set forth in the Selected Financial Highlights table
following the Company Outlook in this release. 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. 2 A summary of all special items that
are included in operating profit before special items and in EBITDA
before special items is set forth in the Selected Financial
Highlights table following the Company Outlook in this release. 3
Free cash flow is defined as net cash provided by operating
activities less capital expenditures, timberland purchases and
acquisitions of companies, net of cash acquired, plus proceeds from
sales of properties, plants, equipment, businesses, timberland and
other assets. 4 The company corrected prior period accounting
errors that occurred over a number of years with respect to
accounting for deferred income tax assets and liabilities, income
tax expense, liabilities for uncertain tax positions, intercompany
revenue eliminations, inventory, fixed assets and other accruals.
The impact of these errors was not material to the company in any
prior year. However, the cumulative effect of the correction of the
prior period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 5 Working capital represents current
assets less current liabilities. Net working capital represents
working capital less cash and cash equivalents. 6 Net debt
represents long-term debt plus the current portion of long-term
debt plus short-term borrowings less cash and cash equivalents. 7
The company corrected prior period accounting errors that occurred
over a number of years with respect to accounting for deferred
income tax assets and liabilities, income tax expense, liabilities
for uncertain tax positions, intercompany revenue eliminations,
inventory, fixed assets and other accruals. The impact of these
errors was not material to the company in any prior year. However,
the cumulative effect of the correction of the prior period errors
would have been material to the current year’s consolidated
financial statements. Consequently, the Company has corrected these
errors for all prior periods presented by revising the consolidated
financial statements and other financial information included
herein. 8 The company corrected prior period accounting errors that
occurred over a number of years with respect to accounting for
deferred income tax assets and liabilities, income tax expense,
liabilities for uncertain tax positions, intercompany revenue
eliminations, inventory, fixed assets and other accruals. The
impact of these errors was not material to the company in any prior
year. However, the cumulative effect of the correction of the prior
period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 9 The company corrected prior period
accounting errors that occurred over a number of years with respect
to accounting for deferred income tax assets and liabilities,
income tax expense, liabilities for uncertain tax positions,
intercompany revenue eliminations, inventory, fixed assets and
other accruals. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the
correction of the prior period errors would have been material to
the current year’s consolidated financial statements. Consequently,
the Company has corrected these errors for all prior periods
presented by revising the consolidated financial statements and
other financial information included herein. 10 The company
corrected prior period accounting errors that occurred over a
number of years with respect to accounting for deferred income tax
assets and liabilities, income tax expense, liabilities for
uncertain tax positions, intercompany revenue eliminations,
inventory, fixed assets and other accruals. The impact of these
errors was not material to the company in any prior year. However,
the cumulative effect of the correction of the prior period errors
would have been material to the current year’s consolidated
financial statements. Consequently, the Company has corrected these
errors for all prior periods presented by revising the consolidated
financial statements and other financial information included
herein. 11 EBITDA is defined as net income, plus interest expense,
net, plus income tax expense, less equity earnings of
unconsolidated affiliates, net of tax, 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 (loss) 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 The company corrected prior period accounting
errors that occurred over a number of years with respect to
accounting for deferred income tax assets and liabilities, income
tax expense, liabilities for uncertain tax positions, intercompany
revenue eliminations, inventory, fixed assets and other accruals.
The impact of these errors was not material to the company in any
prior year. However, the cumulative effect of the correction of the
prior period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 13 The company corrected prior period
accounting errors that occurred over a number of years with respect
to accounting for deferred income tax assets and liabilities,
income tax expense, liabilities for uncertain tax positions,
intercompany revenue eliminations, inventory, fixed assets and
other accruals. The impact of these errors was not material to the
company in any prior year. However, the cumulative effect of the
correction of the prior period errors would have been material to
the current year’s consolidated financial statements. Consequently,
the Company has corrected these errors for all prior periods
presented by revising the consolidated financial statements and
other financial information included herein. 14 EBITDA is defined
as net income, plus interest expense, net, plus income tax expense,
less equity earnings of unconsolidated affiliates, net of tax, plus
depreciation, depletion and amortization. As demonstrated in this
table, EBITDA can also be calculated with reference to operating
profit. 15 The company corrected prior period accounting errors
that occurred over a number of years with respect to accounting for
deferred income tax assets and liabilities, income tax expense,
liabilities for uncertain tax positions, intercompany revenue
eliminations, inventory, fixed assets and other accruals. The
impact of these errors was not material to the company in any prior
year. However, the cumulative effect of the correction of the prior
period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 16 EBITDA is defined as net income,
plus interest expense, net, plus income tax expense, less equity
earnings of unconsolidated affiliates, net of tax, 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
(loss) by segment, which, as demonstrated in the table of
Consolidated EBITDA, is another method to achieve the same result.
17 The company corrected prior period accounting errors that
occurred over a number of years with respect to accounting for
deferred income tax assets and liabilities, income tax expense,
liabilities for uncertain tax positions, intercompany revenue
eliminations, inventory, fixed assets and other accruals. The
impact of these errors was not material to the company in any prior
year. However, the cumulative effect of the correction of the prior
period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 18 Free cash flow is defined as net
cash provided by operating activities less capital expenditures,
timberland purchases and acquisitions of companies, net of cash
acquired, plus proceeds from sales of properties, plants,
equipment, businesses, timberland and other assets. 19 The company
corrected prior period accounting errors that occurred over a
number of years with respect to accounting for deferred income tax
assets and liabilities, income tax expense, liabilities for
uncertain tax positions, intercompany revenue eliminations,
inventory, fixed assets and other accruals. The impact of these
errors was not material to the company in any prior year. However,
the cumulative effect of the correction of the prior period errors
would have been material to the current year’s consolidated
financial statements. Consequently, the Company has corrected these
errors for all prior periods presented by revising the consolidated
financial statements and other financial information included
herein. 20 The company corrected prior period accounting errors
that occurred over a number of years with respect to accounting for
deferred income tax assets and liabilities, income tax expense,
liabilities for uncertain tax positions, intercompany revenue
eliminations, inventory, fixed assets and other accruals. The
impact of these errors was not material to the company in any prior
year. However, the cumulative effect of the correction of the prior
period errors would have been material to the current year’s
consolidated financial statements. Consequently, the Company has
corrected these errors for all prior periods presented by revising
the consolidated financial statements and other financial
information included herein. 21 Operating profit (loss) before
special items is defined as operating profit (loss) plus
restructuring charges plus acquisition-related costs plus non-cash
impairment charges less timberland gains. 22 The company corrected
prior period accounting errors that occurred over a number of years
with respect to accounting for deferred income tax assets and
liabilities, income tax expense, liabilities for uncertain tax
positions, intercompany revenue eliminations, inventory, fixed
assets and other accruals. The impact of these errors was not
material to the company in any prior year. However, the cumulative
effect of the correction of the prior period errors would have been
material to the current year’s consolidated financial statements.
Consequently, the Company has corrected these errors for all prior
periods presented by revising the consolidated financial statements
and other financial information included herein. 23 EBITDA is
defined as net income, plus interest expense, net, plus income tax
expense, less equity earnings of unconsolidated affiliates, net of
tax, 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 (loss) 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. 24 EBITDA
before special items is defined as EBITDA plus restructuring
charges plus acquisition-related costs plus non-cash impairment
charges less timberland gains. 25 The company corrected prior
period accounting errors that occurred over a number of years with
respect to accounting for deferred income tax assets and
liabilities, income tax expense, liabilities for uncertain tax
positions, intercompany revenue eliminations, inventory, fixed
assets and other accruals. The impact of these errors was not
material to the company in any prior year. However, the cumulative
effect of the correction of the prior period errors would have been
material to the current year’s consolidated financial statements.
Consequently, the Company has corrected these errors for all prior
periods presented by revising the consolidated financial statements
and other financial information included herein.
Greif, Inc.Analyst:Robert Lentz, 614-876-2000orMedia:Scott
Griffin, 740-657-6516
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