DELAWARE, Ohio, Feb. 24,
2021 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a
global leader in industrial packaging products and services, today
announced first quarter 2021 results.
First Quarter Financial Highlights include (all results
compared to the first quarter of 2020 unless otherwise
noted):
- Net income of $23.4 million or
$0.40 per diluted Class A share
decreased compared to net income of $32.3
million or $0.55 per diluted
Class A share. Net income, excluding the impact of
adjustments(1), of $35.9
million or $0.61 per diluted
Class A share decreased compared to net income, excluding the
impact of adjustments, of $37.9
million or $0.64 per diluted
Class A share. Adjusted EBITDA(2) decreased by
$8.9 million to $138.5 million.
- Net cash provided by operating activities decreased by
$8.0 million to a source of
$11.5 million. Adjusted free cash
flow(3) increased by $1.8
million to a use of $11.5
million.
- Total debt decreased by $268.7
million to $2,539.4 million.
Net debt(4) decreased by $279.3
million to $2,438.0
million.
Strategic Actions and Announcements
- The Company has made changes to the Rigid Industrial Packaging
& Services ("RIPS") and Flexible Products & Services
("FPS") operational and financial management practices and
procedures and combined the two segments under a single global
leadership team. These changes were made to enhance cross-selling
and service offerings to customers within similar markets and
enhance Greif Business System effectiveness. As a result of these
changes, during the first quarter of 2021, the RIPS segment and the
FPS segment have been combined into a single reportable segment
known as Global Industrial Packaging. Prior to close of business on
February 24, 2021 the Company filed a
Current Report on Form 8-K with the SEC to furnish certain
historical GAAP and non-GAAP financial information in a revised
presentation aligned with the Company's new reportable segment
structure described above.
- Awarded an A- Leadership ranking for the third consecutive year
by CDP as part of their annual climate change assessment and named
to CDP's 2020 Supplier Engagement Leaderboard, placing Greif in the
top 7% of suppliers assessed. Also recognized as one of America's
most responsible companies for the second consecutive year by
Newsweek.
Pete Watson, Greif's President
and Chief Executive Officer, commented:
"Greif delivered solid first quarter results despite continued
challenging circumstances due to the pandemic. Volumes grew across
most of our packaging substrates as many of our key end markets
improved and were particularly robust in our corrugated business.
In response to strong demand for our products and cost inflation
experienced in our key raw materials and transportation services,
we are actively implementing price increases across our broad
global product portfolio.
Looking ahead, Greif is well positioned to benefit as the world
recovers from the pandemic. We remain laser focused on managing
those areas within our control to drive value creation."
(1)
|
Adjustments that are
excluded from net income before adjustments and from earnings per
diluted Class A share before adjustments are restructuring charges,
acquisition and integration related costs, non-cash asset
impairment charges, non-cash pension settlement charges (income),
incremental COVID-19 costs, net and loss (gain) on disposal of
properties, plants, equipment and businesses, net.
|
(2)
|
Adjusted EBITDA is
defined as net income, plus interest expense, net, plus income tax
expense, plus depreciation, depletion and amortization expense,
plus restructuring charges, plus acquisition and integration
related costs, plus non-cash asset impairment charges, plus
non-cash pension settlement charges (income), plus incremental
COVID-19 costs, net, plus loss (gain) on disposal of properties,
plants, equipment and businesses, net.
|
(3)
|
Adjusted free cash
flow is defined as net cash provided by operating activities, less
cash paid for purchases of properties, plants and equipment, plus
cash paid for acquisition and integration related costs, plus cash
paid for incremental COVID-19 costs, net, plus cash paid for
acquisition and integration related Enterprise Resource Planning
(ERP) systems.
|
(4)
|
Net debt is defined
as total debt less cash and cash equivalents.
|
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(5) score was 92.1 during the fiscal first quarter
2021 and 92.6 on a trailing four quarter basis. Our long term
objective is for each business segment to achieve a CSI score of
95.0 or greater.
CSI for the Global Industrial Packaging segment was 94.7, which
was roughly flat to the prior year quarter. CSI for the Paper
Packaging & Services segment was 88.8, which was roughly 4%
lower compared to the prior year quarter as a result of strong
product demand that impacted customer delivery timing.
Liquidity and Balance Sheet
As of January 31,
2021, the Company had $420.9 million of available borrowing
capacity(6) under its $800.0 million revolving credit facility.
During the quarter the Company entered into a delayed draw term
loan with the intent to utilize the proceeds to pay down the
Company's Euro 200 million 7.375%
senior notes at maturity in July of 2021. Based on the provisions
of the applicable loan documents and a series of forward interest
rate swaps entered into by the Company, if this term loan was drawn
down today, the interest rate would be approximately 2.5% per
annum. Other than the Euro 200
million senior notes, the Company has no other sizable debt
maturities due until 2024.
Segment Results (all results compared to the first quarter of
2020 unless otherwise noted)
Net sales are impacted mainly
by the volume of primary products(7) 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 first quarter of 2021 as compared to the prior year quarter
for the business segments with manufacturing operations.
Net Sales Impact -
Primary Products
|
Global Industrial
Packaging
|
|
Paper Packaging &
Services
|
|
%
|
|
%
|
Currency
Translation
|
1.1
|
%
|
|
—
|
%
|
Volume
|
2.4
|
%
|
|
12.6
|
%
|
Selling Prices and
Product Mix
|
1.1
|
%
|
|
2.2
|
%
|
Total Impact of
Primary Products
|
4.6
|
%
|
|
14.8
|
%
|
Global Industrial Packaging
Net sales increased by
$27.6 million to $659.3 million. Net sales excluding foreign
currency translation increased by $18.9
million primarily due to higher volumes and higher average
sale prices partly driven by contractual price adjustment
mechanisms related to raw material price increases.
Gross profit increased by $10.2
million to $130.3 million. The
increase in gross profit was primarily due to the same factors that
impacted net sales, partially offset by higher transportation
expenses.
Operating profit increased by $9.2
million to $54.0 million.
Adjusted EBITDA increased by $12.9
million to $79.5 million
primarily due to the same factors that impacted gross profit.
Paper Packaging & Services
Net sales
increased by $7.2 million to
$480.9 million primarily due to
higher published containerboard prices and higher volumes. Net
sales for the first quarter 2020 included $53.0 million of net sales attributable to
the divested Consumer Packaging Group business, which was sold on
April 1, 2020.
Gross profit decreased by $20.5
million to $79.6 million. The
decrease in gross profit was primarily due to higher old corrugated
container and other raw material input costs and higher
transportation expenses.
Operating profit decreased by $18.2 million to $14.3 million. Adjusted EBITDA decreased by
$21.8 million to $56.1 million primarily due to the same factors
that impacted gross profit.
Land Management
Net sales decreased by $0.7 million to $6.3
million.
Operating profit decreased by $0.2
million to $1.7 million.
Adjusted EBITDA remained flat at $2.9
million.
Tax Summary
During the first quarter, the Company recorded an income tax rate
of 16.8 percent. The Company's tax rate excluding the impact of
adjustments was 19.7 percent. The application of FIN 18 frequently
causes fluctuations in our quarterly effective tax rates.
Dividend Summary
On February
23, 2021, the Board of Directors declared quarterly cash
dividends of $0.44 per share of Class
A Common Stock and $0.66 per share of
Class B Common Stock. Dividends are payable on April 1, 2021, to stockholders of record at the
close of business on March 19,
2021.
Company Outlook
The Company is utilizing quarterly
outlook given the continued market unpredictability caused by the
COVID-19 pandemic.
Second Quarter
2021 Outlook
|
Class A earnings per
share before adjustments
|
$0.96 -
$1.06
|
Note: Fiscal second quarter 2021 Class A earnings per share
guidance on a GAAP basis is 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 incremental COVID-19 costs, net; non-cash
pension settlement (income) charges; or acquisition and integration
costs, and the income tax effects of these items and other income
tax-related events. No reconciliation of the fiscal second quarter
2021 Class A earnings per share before adjustments guidance, a
non-GAAP financial measure which excludes gains and losses on the
disposal of businesses, timberland and properties, plants and
equipment, non-cash pension settlement (income) charges,
acquisition and integration costs, incremental COVID-19 costs, net,
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.
(5)
|
Customer satisfaction
index (CSI) tracks a variety of internal metrics designed to
enhance the customer experience in dealing with Greif.
|
(6)
|
Available borrowing
capacity is determined by the lesser of the available capacity on
the Company's secured revolving credit facility or the amount which
could be borrowed without causing the Company's leverage ratio to
exceed 4.5.
|
(7)
|
Primary products are
manufactured steel, plastic and fibre drums; new and reconditioned
intermediate bulk containers; 1&2 loop and 4 loop flexible
intermediate bulk containers; linerboard containerboard, corrugated
sheets and corrugated containers, and boxboard and tube and core
products.
|
Conference Call
The Company will host a conference
call to discuss the first quarter of 2021 results on February 25, 2021, at 8:30
a.m. Eastern Time (ET). Participants may access the call
using the following online registration link:
http://www.directeventreg.com/registration/event/3884044.
Registrants will receive a confirmation email containing dial in
details and a unique conference call code for entry. 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, 2020. 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) our global
operations subject us to currency exchange and political risks that
could adversely affect our results of operations, (iii) the
COVID-19 pandemic could continue to impact any combination of our
business, financial condition, results of operations and cash
flows, (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 and customer
preferences, (viii) raw material, energy and transportation price
fluctuations and shortages may adversely impact our manufacturing
operations and costs, (ix) the frequency and volume of our timber
and timberland sales will impact our financial performance, (x) we
may not successfully implement our business strategies, including
achieving our growth objectives, (xi) we may encounter difficulties
or liabilities arising from acquisitions or divestitures, (xii) the
acquisition of Caraustar Industries, Inc. and its subsidiaries
subjects us to various risks and uncertainties, (xiii) we may incur
additional restructuring costs and there is no guarantee that our
efforts to reduce costs will be successful, (xiv) several
operations are conducted by joint ventures that we cannot operate
solely for our benefit, (xv) certain of the agreements that govern
our joint ventures provide our partners with put or call options,
(xvi) our ability to attract, develop and retain talented and
qualified employees, managers and executives is critical to our
success, (xvii) our business may be adversely impacted by work
stoppages and other labor relations matters, (xviii) we may be
subject to losses that might not be covered in whole or in part by
existing insurance reserves or insurance coverage and general
insurance premium and deductible increases, (xix) our business
depends on the uninterrupted operations of our facilities, systems
and business functions, including our information technology and
other business systems, (xx) a security breach of customer,
employee, supplier or company information may have a material
adverse effect on our business, financial condition, results of
operations and cash flows, (xxi) changes in U.S. generally accepted
accounting principles (GAAP) and SEC rules and regulations
concerning the maintenance of effective internal controls could
materially impact our reported financial results, (xxii) we could
be subject to changes in our tax rates, the adoption of new U.S. or
foreign tax legislation or exposure to additional tax liabilities,
(xxiii) full realization of our deferred tax assets may be affected
by a number of factors, (xxiv) our level of indebtedness could
adversely affect our liquidity, limit our flexibility in responding
to business opportunities, and increase our vulnerability to
adverse changes in economic and industry conditions, (xxv) we have
a significant amount of goodwill and long-lived assets which, if
impaired in the future, would adversely impact our results of
operations, (xxvi) 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, (xxvii) legislation/regulation related to
environmental and health and safety matters and corporate social
responsibility could negatively impact our operations and financial
performance, (xxviii) product liability claims and other legal
proceedings could adversely affect our operations and financial
performance, (xxix) 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, (xxx) changing climate,
climate change regulations and greenhouse gas effects may adversely
affect our operations and financial performance. 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
January 31,
|
(in millions,
except per share amounts)
|
2021
|
|
2020
|
Net sales
|
$
|
1,146.5
|
|
|
$
|
1,112.4
|
|
Cost of products
sold
|
934.3
|
|
|
889.8
|
|
Gross
profit
|
212.2
|
|
|
222.6
|
|
Selling, general and
administrative expenses
|
134.3
|
|
|
135.4
|
|
Restructuring
charges
|
3.1
|
|
|
3.3
|
|
Acquisition and
integration related costs
|
2.0
|
|
|
5.1
|
|
Non-cash asset
impairment charges
|
1.3
|
|
|
0.1
|
|
Loss (gain) on
disposal of properties, plants and equipment, net
|
1.6
|
|
|
(0.5)
|
|
Gain on disposal of
businesses, net
|
(0.1)
|
|
|
—
|
|
Operating
profit
|
70.0
|
|
|
79.2
|
|
Interest expense,
net
|
25.2
|
|
|
30.7
|
|
Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Other expense,
net
|
—
|
|
|
1.3
|
|
Income before income
tax expense and equity earnings of unconsolidated affiliates,
net
|
36.3
|
|
|
47.3
|
|
Income tax
expense
|
6.1
|
|
|
11.4
|
|
Equity earnings of
unconsolidated affiliates, net of tax
|
(0.7)
|
|
|
(0.2)
|
|
Net income
|
30.9
|
|
|
36.1
|
|
Net income
attributable to noncontrolling interests
|
(7.5)
|
|
|
(3.8)
|
|
Net income
attributable to Greif, Inc.
|
$
|
23.4
|
|
|
$
|
32.3
|
|
Basic earnings per
share attributable to Greif, Inc. common
shareholders:
|
|
|
|
Class A common
stock
|
$
|
0.40
|
|
|
$
|
0.55
|
|
Class B common
stock
|
$
|
0.59
|
|
|
$
|
0.81
|
|
Diluted earnings
per share attributable to Greif, Inc. common
shareholders:
|
|
|
|
Class A common
stock
|
$
|
0.40
|
|
|
$
|
0.55
|
|
Class B common
stock
|
$
|
0.59
|
|
|
$
|
0.81
|
|
Shares used to
calculate basic earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
Class A common
stock
|
26.5
|
|
|
26.3
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
Shares used to
calculate diluted earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
Class A common
stock
|
26.5
|
|
|
26.4
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
UNAUDITED
|
|
(in
millions)
|
January 31,
2021
|
|
October 31,
2020
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
101.4
|
|
|
$
|
105.9
|
|
Trade accounts
receivable
|
679.7
|
|
|
636.6
|
|
Inventories
|
335.7
|
|
|
293.6
|
|
Assets held by
special purpose entities
|
—
|
|
|
50.9
|
|
Other current
assets
|
229.5
|
|
|
215.8
|
|
|
1,346.3
|
|
|
1,302.8
|
|
LONG-TERM
ASSETS
|
|
|
|
Goodwill
|
1,530.4
|
|
|
1,518.4
|
|
Intangible
assets
|
700.1
|
|
|
715.3
|
|
Operating lease
assets
|
299.8
|
|
|
307.5
|
|
Other long-term
assets
|
175.1
|
|
|
140.0
|
|
|
2,705.4
|
|
|
2,681.2
|
|
PROPERTIES, PLANTS
AND EQUIPMENT
|
1,514.9
|
|
|
1,526.9
|
|
|
$
|
5,566.6
|
|
|
$
|
5,510.9
|
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
|
468.0
|
|
|
$
|
450.7
|
|
Short-term
borrowings
|
46.2
|
|
|
28.4
|
|
Current portion of
long-term debt
|
133.6
|
|
|
123.1
|
|
Current portion of
operating lease liabilities
|
51.8
|
|
|
52.3
|
|
Current portion of
liabilities held by special purpose entities
|
—
|
|
|
43.3
|
|
Other current
liabilities
|
290.9
|
|
|
302.3
|
|
|
990.5
|
|
|
1,000.1
|
|
LONG-TERM
LIABILITIES
|
|
|
|
Long-term
debt
|
2,359.6
|
|
|
2,335.5
|
|
Operating lease
liabilities
|
250.5
|
|
|
257.7
|
|
Other long-term
liabilities
|
684.2
|
|
|
696.9
|
|
|
3,294.3
|
|
|
3,290.1
|
|
REDEEMABLE
NONCONTROLLING INTERESTS
|
19.2
|
|
|
20.0
|
|
EQUITY
|
|
|
|
Total Greif, Inc.
equity
|
1,205.3
|
|
|
1,152.2
|
|
Noncontrolling
interests
|
57.3
|
|
|
48.5
|
|
|
1,262.6
|
|
|
1,200.7
|
|
|
$
|
5,566.6
|
|
|
$
|
5,510.9
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
|
|
|
Three months ended
January 31,
|
(in
millions)
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
|
30.9
|
|
|
$
|
36.1
|
|
Depreciation,
depletion and amortization
|
59.3
|
|
|
61.3
|
|
Asset
impairments
|
1.3
|
|
|
0.1
|
|
Pension settlement
charges (income)
|
8.5
|
|
|
(0.1)
|
|
Other non-cash
adjustments to net income
|
15.9
|
|
|
7.6
|
|
Operating working
capital changes
|
(52.6)
|
|
|
(27.7)
|
|
Decrease in cash from
changes in other assets and liabilities
|
(51.8)
|
|
|
(57.8)
|
|
Net cash provided by
operating activities
|
11.5
|
|
|
19.5
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchases of
properties, plants and equipment
|
(27.4)
|
|
|
(37.5)
|
|
Purchases of and
investments in timber properties
|
(1.0)
|
|
|
(1.6)
|
|
Collections of
receivables held in special purpose entities
|
50.9
|
|
|
—
|
|
Payments for issuance
of loans receivable
|
(15.0)
|
|
|
—
|
|
Other
|
(3.3)
|
|
|
1.5
|
|
Net cash provided by
(used in) investing activities
|
4.2
|
|
|
(37.6)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
issuance of debt, net
|
40.7
|
|
|
58.5
|
|
Dividends paid to
Greif, Inc. shareholders
|
(25.9)
|
|
|
(25.9)
|
|
Payments for
liabilities held in special purpose entities
|
(43.3)
|
|
|
—
|
|
Other
|
(1.5)
|
|
|
(0.8)
|
|
Net cash provided by
(used in) financing activities
|
(30.0)
|
|
|
31.8
|
|
Effects of exchange
rates on cash
|
9.8
|
|
|
(0.2)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(4.5)
|
|
|
13.5
|
|
Cash and cash
equivalents, beginning of period
|
105.9
|
|
|
77.3
|
|
Cash and cash
equivalents, end of period
|
$
|
101.4
|
|
|
$
|
90.8
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
FINANCIAL
HIGHLIGHTS BY SEGMENT
UNAUDITED
|
|
|
Three months ended
January 31,
|
(in
millions)
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
Global Industrial
Packaging
|
$
|
659.3
|
|
|
$
|
631.7
|
|
Paper
Packaging & Services
|
480.9
|
|
|
473.7
|
|
Land
Management
|
6.3
|
|
|
7.0
|
|
Total net
sales
|
$
|
1,146.5
|
|
|
$
|
1,112.4
|
|
Gross
profit:
|
|
|
|
Global Industrial
Packaging
|
$
|
130.3
|
|
|
$
|
120.1
|
|
Paper
Packaging & Services
|
79.6
|
|
|
100.1
|
|
Land
Management
|
2.3
|
|
|
2.4
|
|
Total gross
profit
|
$
|
212.2
|
|
|
$
|
222.6
|
|
Operating
profit:
|
|
|
|
Global Industrial
Packaging
|
$
|
54.0
|
|
|
$
|
44.8
|
|
Paper
Packaging & Services
|
14.3
|
|
|
32.5
|
|
Land
Management
|
1.7
|
|
|
1.9
|
|
Total operating
profit
|
$
|
70.0
|
|
|
$
|
79.2
|
|
EBITDA(8):
|
|
|
|
Global Industrial
Packaging
|
$
|
75.8
|
|
|
$
|
63.6
|
|
Paper
Packaging & Services
|
42.9
|
|
|
73.0
|
|
Land
Management
|
2.8
|
|
|
2.9
|
|
Total
EBITDA
|
$
|
121.5
|
|
|
$
|
139.5
|
|
Adjusted
EBITDA(9):
|
|
|
|
Global Industrial
Packaging
|
$
|
79.5
|
|
|
$
|
66.6
|
|
Paper
Packaging & Services
|
56.1
|
|
|
77.9
|
|
Land
Management
|
2.9
|
|
|
2.9
|
|
Total Adjusted
EBITDA
|
$
|
138.5
|
|
|
$
|
147.4
|
|
|
|
(8)
|
EBITDA is defined as
net income, plus interest expense, net, 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.
|
(9)
|
Adjusted EBITDA is
defined as net income, plus interest expense, net, plus income tax
expense, plus depreciation, depletion and amortization expense,
plus restructuring charges, plus acquisition and integration
related costs, plus non-cash impairment charges, plus non-cash
pension settlement charges (income), plus incremental COVID-19
costs, net, plus loss (gain) on disposal of properties, plants,
equipment and businesses, net.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
CONSOLIDATED
ADJUSTED EBITDA
UNAUDITED
|
|
|
|
Three months ended
January 31,
|
(in
millions)
|
2021
|
|
2020
|
Net income
|
$
|
30.9
|
|
|
$
|
36.1
|
|
Plus: Interest
expense, net
|
25.2
|
|
|
30.7
|
|
Plus: Income tax
expense
|
6.1
|
|
|
11.4
|
|
Plus: Depreciation,
depletion and amortization expense
|
59.3
|
|
|
61.3
|
|
EBITDA
|
$
|
121.5
|
|
|
$
|
139.5
|
|
Net income
|
$
|
30.9
|
|
|
$
|
36.1
|
|
Plus: Interest
expense, net
|
25.2
|
|
|
30.7
|
|
Plus: Income tax
expense
|
6.1
|
|
|
11.4
|
|
Plus: Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Plus: Other expense,
net
|
—
|
|
|
1.3
|
|
Plus: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.7)
|
|
|
(0.2)
|
|
Operating
profit
|
$
|
70.0
|
|
|
$
|
79.2
|
|
Less: Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Less: Other expense,
net
|
—
|
|
|
1.3
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.7)
|
|
|
(0.2)
|
|
Plus: Depreciation,
depletion and amortization expense
|
59.3
|
|
|
61.3
|
|
EBITDA
|
$
|
121.5
|
|
|
$
|
139.5
|
|
Plus: Restructuring
charges
|
3.1
|
|
|
3.3
|
|
Plus: Acquisition and
integration related costs
|
2.0
|
|
|
5.1
|
|
Plus: Non-cash asset
impairment charges
|
1.3
|
|
|
0.1
|
|
Plus: Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Plus: Incremental
COVID-19 costs, net (10)
|
0.6
|
|
|
—
|
|
Plus: Loss (gain) on
disposal of properties, plants, equipment, and businesses,
net
|
1.5
|
|
|
(0.5)
|
|
Adjusted
EBITDA
|
$
|
138.5
|
|
|
$
|
147.4
|
|
|
|
(10)
|
Incremental COVID-19
costs, net includes costs directly attributable to COVID-19 such as
costs incurred for incremental cleaning and sanitation efforts and
employee safety measures, offset by economic relief received from
foreign governments.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
SEGMENT ADJUSTED
EBITDA(11)
UNAUDITED
|
|
|
Three months ended
January 31,
|
(in
millions)
|
2021
|
|
2020
|
Global Industrial
Packaging
|
|
|
|
Operating
profit
|
54.0
|
|
|
44.8
|
|
Less: Other (income)
expense, net
|
(0.1)
|
|
|
2.5
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.7)
|
|
|
(0.2)
|
|
Plus: Depreciation and
amortization expense
|
21.0
|
|
|
21.1
|
|
EBITDA
|
$
|
75.8
|
|
|
$
|
63.6
|
|
Plus: Restructuring
charges
|
2.8
|
|
|
2.3
|
|
Plus: Non-cash asset
impairment charges
|
1.3
|
|
|
0.1
|
|
Plus: Incremental
COVID-19 costs, net
|
0.3
|
|
|
—
|
|
Plus: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(0.7)
|
|
|
0.6
|
|
Adjusted
EBITDA
|
$
|
79.5
|
|
|
$
|
66.6
|
|
Paper
Packaging & Services
|
|
|
|
Operating
profit
|
14.3
|
|
|
32.5
|
|
Less: Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Less: Other expense
(income), net
|
0.1
|
|
|
(1.2)
|
|
Plus: Depreciation and
amortization expense
|
37.2
|
|
|
39.2
|
|
EBITDA
|
$
|
42.9
|
|
|
$
|
73.0
|
|
Plus: Restructuring
charges
|
0.3
|
|
|
1.0
|
|
Plus: Acquisition and
integration related costs
|
2.0
|
|
|
5.1
|
|
Plus: Non-cash pension
settlement charges (income)
|
8.5
|
|
|
(0.1)
|
|
Plus: Incremental
COVID-19 costs, net
|
0.3
|
|
|
—
|
|
Plus: Loss (gain) on
disposal of properties, plants, equipment, and businesses,
net
|
2.1
|
|
|
(1.1)
|
|
Adjusted
EBITDA
|
$
|
56.1
|
|
|
$
|
77.9
|
|
Land
Management
|
|
|
|
Operating
profit
|
1.7
|
|
|
1.9
|
|
Plus: Depreciation,
depletion and amortization expense
|
1.1
|
|
|
1.0
|
|
EBITDA
|
$
|
2.8
|
|
|
$
|
2.9
|
|
Plus: Loss on disposal
of properties, plants, equipment, and businesses, net
|
0.1
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
2.9
|
|
|
$
|
2.9
|
|
Consolidated
EBITDA
|
$
|
121.5
|
|
|
$
|
139.5
|
|
Consolidated Adjusted
EBITDA
|
$
|
138.5
|
|
|
$
|
147.4
|
|
|
|
(11)
|
Adjusted EBITDA is
defined as net income, plus interest expense, net, plus income tax
expense, plus depreciation, depletion and amortization expense,
plus restructuring charges, plus acquisition and integration
related costs, plus non-cash impairment charges, plus non-cash
pension settlement charges (income), plus incremental COVID-19
costs, net, plus loss (gain) 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(12)
UNAUDITED
|
|
|
Three months ended
January 31,
|
(in
millions)
|
2021
|
|
2020
|
Net cash provided
by operating activities
|
$
|
11.5
|
|
|
$
|
19.5
|
|
Cash paid for
purchases of properties, plants and equipment
|
(27.4)
|
|
|
(37.5)
|
|
Free cash
flow
|
$
|
(15.9)
|
|
|
$
|
(18.0)
|
|
Cash paid for
acquisition and integration related costs
|
2.0
|
|
|
4.1
|
|
Cash paid for
incremental COVID-19 costs, net
|
0.6
|
|
|
—
|
|
Cash paid for
acquisition and integration related ERP systems
|
1.8
|
|
|
0.6
|
|
Adjusted free cash
flow
|
$
|
(11.5)
|
|
|
$
|
(13.3)
|
|
|
|
(12)
|
Adjusted free cash
flow is defined as net cash provided by operating activities, less
cash paid for purchases of properties, plants and equipment, plus
cash paid for acquisition and integration related costs, plus cash
paid for incremental COVID-19 costs, net, plus cash paid for
acquisition and integration related ERP systems.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
NET INCOME, CLASS
A EARNINGS PER SHARE AND TAX RATE BEFORE ADJUSTMENTS
UNAUDITED
|
|
(in millions,
except for per share amounts)
|
Income before
Income Tax
(Benefit)
Expense and
Equity
Earnings of
Unconsolidated Affiliates, net
|
|
Income
Tax
(Benefit)
Expense
|
|
Equity
Earnings
|
|
Non-
Controlling
Interest
|
|
Net Income
(Loss)
Attributable
to Greif,
Inc.
|
|
Diluted
Class A
Earnings
Per Share
|
|
Tax
Rate
|
Three months ended
January 31, 2021
|
$
|
36.3
|
|
|
$
|
6.1
|
|
|
$
|
(0.7)
|
|
|
$
|
7.5
|
|
|
$
|
23.4
|
|
|
$
|
0.40
|
|
|
16.8
|
%
|
Restructuring
charges
|
3.1
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
0.04
|
|
|
|
Acquisition and
integration related costs
|
2.0
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
0.03
|
|
|
|
Non-cash asset
impairment charges
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
0.02
|
|
|
|
Non-cash pension
settlement charges
|
8.5
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
0.09
|
|
|
|
Incremental COVID-19
costs, net
|
0.6
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
|
0.01
|
|
|
|
Loss on disposal of
properties, plants, equipment
and businesses, net
|
1.5
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
0.02
|
|
|
|
Excluding
Adjustments
|
$
|
53.3
|
|
|
$
|
10.5
|
|
|
$
|
(0.7)
|
|
|
$
|
7.6
|
|
|
$
|
35.9
|
|
|
$
|
0.61
|
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
January 31, 2020
|
$
|
47.3
|
|
|
$
|
11.4
|
|
|
$
|
(0.2)
|
|
|
$
|
3.8
|
|
|
$
|
32.3
|
|
|
$
|
0.55
|
|
|
24.1
|
%
|
Restructuring
charges
|
3.3
|
|
|
0.9
|
|
|
—
|
|
|
0.3
|
|
|
2.1
|
|
|
0.04
|
|
|
|
Acquisition and
integration related costs
|
5.1
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
0.06
|
|
|
|
Non-cash asset
impairment charges
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
Non-cash pension
settlement income
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
Gain on disposal of
properties, plants, equipment
and businesses, net
|
(0.5)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(0.4)
|
|
|
(0.01)
|
|
|
|
Excluding
Adjustments
|
$
|
55.2
|
|
|
$
|
13.4
|
|
|
$
|
(0.2)
|
|
|
$
|
4.1
|
|
|
$
|
37.9
|
|
|
$
|
0.64
|
|
|
24.3
|
%
|
The impact of income tax expense and non-controlling interest on
each adjustment is calculated based on tax rates and ownership
percentages specific to each applicable entity.
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO NON-GAAP
RECONCILIATION
NET SALES TO NET
SALES EXCLUDING THE IMPACT OF
CURRENCY
TRANSLATION
UNAUDITED
|
|
|
Three months ended
January 31,
|
|
|
|
|
(in
millions)
|
2021
|
|
2020
|
|
Increase
(Decrease) in
Net Sales ($)
|
|
Increase
(Decrease) in
Net Sales (%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,146.5
|
|
|
$
|
1,112.4
|
|
|
$
|
34.1
|
|
|
3.1
|
%
|
Currency
Translation
|
(8.8)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,137.7
|
|
|
$
|
1,112.4
|
|
|
$
|
25.3
|
|
|
2.3
|
%
|
Global Industrial
Packaging
|
|
|
|
|
|
|
|
Net Sales
|
$
|
659.3
|
|
|
$
|
631.7
|
|
|
$
|
27.6
|
|
|
4.4
|
%
|
Currency
Translation
|
(8.7)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
650.6
|
|
|
$
|
631.7
|
|
|
$
|
18.9
|
|
|
3.0
|
%
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
480.9
|
|
|
$
|
473.7
|
|
|
$
|
7.2
|
|
|
1.5
|
%
|
Currency
Translation
|
(0.1)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
480.8
|
|
|
$
|
473.7
|
|
|
$
|
7.1
|
|
|
1.5
|
%
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
NET
DEBT
UNAUDITED
|
|
(in
millions)
|
January 31,
2021
|
|
January 31,
2020
|
Total Debt
|
$
|
2,539.4
|
|
|
$
|
2,808.1
|
|
Cash and cash
equivalents
|
(101.4)
|
|
|
(90.8)
|
|
Net
Debt
|
$
|
2,438.0
|
|
|
$
|
2,717.3
|
|
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SOURCE Greif, Inc.