DELAWARE, Ohio, Aug. 31,
2011 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a
global leader in industrial packaging products and services, today
announced results for its third fiscal quarter, which ended
July 31, 2011. The company reported
record third quarter net sales of $1.1
billion, record third quarter operating profit of
$108.0 million, third quarter net
income of $63.0 million or
$1.07 per diluted Class A share,
third quarter net income before special items, net of tax of
$69.7 million or $1.18 per diluted Class A share before special
items, net of tax, and record third quarter EBITDA before special
items of $147.5 million.
|
|
|
|
(Dollars in millions, except
per-share amounts)
|
Three months
ended
July 31,
|
|
Nine months
ended
July 31,
|
|
Selected Financial
Highlights
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
$1,122.0
|
|
$921.3
|
|
$3,116.5
|
|
$2,467.6
|
|
Operating profit
|
108.0
|
|
95.7
|
|
268.0
|
|
219.1
|
|
Operating profit before special
items
|
117.1
|
|
111.1
|
|
301.6
|
|
259.9
|
|
Net income attributable to
Greif, Inc.
|
63.0
|
|
66.0
|
|
155.3
|
|
133.4
|
|
Net income attributable to
Greif, Inc. before special items
|
69.7
|
|
78.6
|
|
180.7
|
|
166.5
|
|
Diluted Class A earnings per
share
|
1.07
|
|
1.12
|
|
2.65
|
|
2.28
|
|
Diluted Class A earnings per
share before special items
|
1.18
|
|
1.34
|
|
3.08
|
|
2.84
|
|
EBITDA(1)
|
138.4
|
|
122.7
|
|
360.7
|
|
299.6
|
|
EBITDA(1) before special
items
|
147.5
|
|
138.1
|
|
394.3
|
|
340.4
|
|
Special Items
|
|
|
|
|
|
|
|
|
Restructuring charges
|
$3.4
|
|
$9.8
|
|
$11.4
|
|
$20.6
|
|
Restructuring-related inventory
charges
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Acquisition-related
costs
|
2.7
|
|
5.5
|
|
19.2
|
|
20.1
|
|
Non-cash intangible asset
impairment charge
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
Total special
items
|
$9.1
|
|
$15.4
|
|
$33.6
|
|
$40.8
|
|
|
|
|
|
|
|
|
|
|
Total special items, net
of tax
|
$6.7
|
|
$12.6
|
|
$25.4
|
|
$33.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31,
2011
|
|
October 31,
2010
|
|
July 31,
2010
|
|
Working capital(2)
|
$503.0
|
|
$404.1
|
|
$398.4
|
|
Net working
capital(2)
|
393.9
|
|
297.1
|
|
314.2
|
|
Long-term debt
|
1,255.8
|
|
953.1
|
|
948.6
|
|
Net debt(3)
|
1,276.6
|
|
919.5
|
|
935.4
|
|
|
|
|
|
|
|
|
|
|
|
Michael J. Gasser, chairman and
chief executive officer, said, "Our strong growth in net sales for
the quarter benefited from acquisitions during the last 12 months,
higher selling prices and the positive impact of foreign currency
translation. Product demand for the Rigid Industrial
Packaging & Services segment in North
America and Western Europe
was lower than anticipated during the final three weeks of the
quarter. There has been some recovery in demand based on
August orders and shipments, on a seasonally adjusted basis, but at
a lower level than earlier in the year. We are implementing actions
to mitigate the financial impact of these developments.
"During the third quarter, we completed a euro 200 million senior note offering to
facilitate growth and improve our liquidity. We also executed
two rigid industrial packaging acquisitions with operations in EMEA
and Latin America that extend our
global footprint and capabilities. Immediately following the
end of the third quarter, we completed an acquisition in the
reconditioning market in Europe
that complements our existing North
America reconditioning business."
(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) Working capital represents current assets less current
liabilities. Net working capital represents working capital less
cash and cash equivalents
(3) Net debt represents long-term debt plus the current potion of
long-term debt plus short-term borrowings less cash and cash
equivalents.
Consolidated Results
Net sales were $1.1 billion for
the third quarter of 2011 compared with $921.3 million for the third quarter of 2010.
The 21.8 percent increase was due to higher sales volumes,
increased selling prices resulting from the pass-through of higher
raw material costs and the positive impact of foreign currency
translation. The higher sales volumes were primarily due to
acquisitions in the Rigid Industrial Packaging & Services and
Flexible Products & Services segments and higher volumes in the
Paper Packaging segment.
Gross profit increased to $211.4
million for the third quarter of 2011 compared to
$191.0 million for the third quarter
of 2010 primarily due to higher sales volumes. Gross profit
margin was 18.8 percent for the third quarter of 2011 compared with
20.7 percent for the third quarter of 2010. The
quarter-over-quarter decline from the prior period was primarily
due to reduced market demand, shift in product mix, inability to
capture all cost increases in Rigid Industrial Packaging &
Services and higher old corrugated container costs in the Paper
Packaging segment.
Selling, general and administrative (SG&A) expenses were
$109.1 million for the third quarter
of 2011 compared with $90.4 million
for the third quarter of 2010. The $18.7
million increase was primarily due to the inclusion of
SG&A expenses for acquired companies. Acquisition-related
costs of $2.7 million and
$5.5 million were also included in
SG&A expenses for the third quarters of 2011 and 2010,
respectively. In addition, the company recorded a
$3.0 million non-cash intangible
asset impairment charge for the third quarter of 2011 related to
trademarks used in the flexibles businesses acquired in 2010.
SG&A expenses, as a percentage of net sales, were 9.7
percent for the third quarter of 2011 compared with 9.8 percent for
the same quarter of last year.
Operating profit was $108.0
million and $95.7 million for
the third quarters of 2011 and 2010, respectively. Operating
profit before special items was $117.1
million for the third quarter of 2011 compared with
$111.1 million for the third quarter
of 2010. The $6.0 million
increase was due to Land Management ($8.3
million increase) and Flexible Products & Services
($6.2 million increase), partially
offset by Paper Packaging ($6.6
million decrease) and Rigid Industrial Packaging &
Services ($1.9 million decrease).
Interest expense, net, was $18.4
million for the third quarter of 2011 compared with
$16.0 million for the same period
last year. The increase was primarily due to the higher level
of debt resulting from acquisitions and related working capital
requirements.
Income tax expense was $21.6
million and $14.4 million for
the third quarters of 2011 and 2010, respectively. The company's
book tax rate was 25.4 percent and 18.2 percent for the third
quarters of 2011 and 2010, respectively.
Net income was $63.0 million, or
$1.07 per diluted Class A share and
$1.61 per diluted Class B share, for
the third quarter of 2011 and $66.0
million, or $1.12 per diluted
Class A share and $1.70 per diluted
Class B share, for the third quarter of 2010. Net income
before special items, net of tax was $69.7
million for the third quarter of 2011 compared with
$78.6 million for the third quarter
of 2010. Diluted earnings per share before special items, net
of tax was $1.18 compared to
$1.34 per Class A share and
$1.79 compared to $2.02 per Class B share for the third quarters of
2011 and 2010, respectively.
EBITDA was $138.4 million and
$122.7 million for the third quarters
of 2011 and 2010, respectively. EBITDA before special items
increased 6.8 percent to $147.5
million for the third quarter of 2011 compared with
$138.1 million for the third quarter
of 2010. The $9.4 million
increase was primarily due to the improved operating profit before
special items in the Flexible Products & Services and Land
Management segments.
Segment Results
Rigid Industrial Packaging & Services
Net sales were $804.0 million for
the third quarter of 2011 compared with $681.7 million for the third quarter of 2010. The
17.9 percent increase in net sales was primarily due to higher
selling prices, the positive impact of foreign currency translation
and acquisitions, partially offset by lower sales volumes due to
decreased demand during the last three weeks of July in
North America and Western Europe on a same-structure basis.
Gross profit margin was 18.7 percent for the third quarter of
2011 and 20.8 percent for the third quarter of 2010. The
quarter-over-quarter reduction from the prior year was primarily
due to reduced market demand, shift in product mix and inability to
capture all cost increases.
Operating profit was $72.0 million
and $71.5 million for the third
quarters of 2011 and 2010, respectively. Operating profit
before special items was $77.5
million for the third quarter of 2011 versus $79.4 million for the third quarter of 2010.
The $1.9 million decrease was
primarily due to the lower gross profit margin for this
segment.
EBITDA was $91.5 million and
$89.6 million for the third quarters
of 2011 and 2010, respectively. EBITDA before special items
was $97.0 million for the third
quarter of 2011 compared with $97.5
million for the third quarter of 2010 for the same reasons
impacting the operating profit before special items.
Flexible Products & Services
Net sales were $141.2 million for
the third quarter of 2011 compared with $66.9 million for the third quarter of 2010.
The increase was primarily due to sales attributable to
flexible intermediate bulk container companies acquired during the
second half of fiscal 2010.
Gross profit margin increased to 22.9 percent for the third
quarter of 2011 from 21.2 percent for the third quarter of 2010.
The change in gross profit margin was primarily due to
improved pricing and increased operating efficiencies attributable
to the Greif Business System.
Operating profit was $7.7 million
and $2.8 million for the third
quarters of 2011 and 2010, respectively. Operating profit
before special items increased to $12.0
million for the third quarter of 2011 from $5.8 million for the third quarter of 2010
primarily as a result of acquisitions during the second half of
fiscal 2010 and improved gross profit margins from the
implementation of the Greif Business System.
EBITDA was $10.1 million and
$3.3 million for the third quarters
of 2011 and 2010, respectively. EBITDA was impacted by
acquisition-related costs of $0.6
million and $2.9 million for
the third quarters of 2011 and 2010, respectively. EBITDA
before special items increased to $14.4
million for the third quarter of 2011 from $6.3 million for the third quarter of 2010 for
the same reasons impacting the operating profit before special
items.
Paper Packaging
Net sales were $172.8 million for
the third quarter of 2011 compared with $168.8 million for the third quarter of 2010. The
2.4 percent increase in net sales was primarily due to higher sales
volumes and higher containerboard selling prices attributable to
final realization of the second of two containerboard price
increases implemented in 2010.
Gross profit margin declined to 16.0 percent for the third
quarter of 2011 from 19.8 percent for the third quarter of 2010.
This decrease was primarily due to higher raw material costs,
including a quarter-over-quarter increase of approximately 24
percent for old corrugated container costs, and higher
transportation costs as a result of increasing sales volumes and
fuel costs, partially offset by lower energy costs.
Operating profit was $17.5 million
and $18.9 million for the third
quarters of 2011 and 2010, respectively. Operating profit
before special items was $16.8
million for the third quarter of 2011 compared to
$23.4 million for the third quarter
of 2010. The $6.6 million
decrease was primarily due to the lower gross profit margin for the
third quarter of 2011 and a $1.7
million gain on sale of a facility in the third quarter of
2010.
EBITDA decreased to $25.5 million
for the third quarter of 2011 compared with $26.7 million in the third quarter of 2010.
EBITDA before special items decreased to $24.8 million for the third quarter of 2011 from
$31.2 million for the third quarter
of 2010 for the same reasons impacting the operating profit before
special items.
Land Management
Net sales were $4.0 million for
the third quarter of 2011 compared with $3.9
million for the third quarter of 2010.
Operating profit and operating profit before special items was
$10.8 million for the third quarter
of 2011 compared to $2.5 million for
the third quarter of 2010. The results of this segment
reflect an increase in disposal of special-use properties (surplus,
higher and better use and development properties) of $7.0 million for the third quarter of 2011
compared to $1.3 million for the
third quarter of 2010. The third quarter of 2011 also
included a $2.5 million purchase
price adjustment related to the expropriation of surplus property
from a prior period.
EBITDA and EBITDA before special items was $11.3 million for the third quarter of 2011
compared to $3.1 million for the
third quarter of 2010. Included in these amounts were profits from
the disposal of special-use properties and a purchase price
adjustment in the third quarter of 2011.
Other Cash Flow Information
Cash flow from operations was $35.4
million for the company in the third quarter of 2011
compared to $74.0 million in the
third quarter of 2010.
Capital expenditures were $44.1
million, excluding timberland purchases of $2.5 million, for the third quarter of 2011
compared with capital expenditures of $36.4
million, excluding timberland purchases of $2.9 million, for the third quarter of 2010.
Capital expenditures are expected to be approximately $160 million, excluding timberland purchases and
acquisitions, for fiscal 2011.
During the first nine months of 2011, the company's net debt
increased $357.1 million primarily
due to funding acquisitions, higher capital expenditures and
increased working capital needs. Acquisitions, net of cash
were $185.7 million for the nine
months ended July 31, 2011, which
included $157.3 million for the third
quarter of 2011.
On July 15, 2011, one of the
company's European subsidiaries issued euro
200 million of senior notes. These notes provide
financing to support the company's growth initiatives while
maintaining adequate liquidity, to maintain an appropriate
relationship of fixed and variable rate debt and to extend
maturities of the debt portfolio.
On Aug. 30, 2011, the Board of
Directors declared quarterly cash dividends of $0.42 per share of Class A Common Stock and
$0.63 per share of Class B Common
Stock. These dividends are payable on Oct.
1, 2011, to stockholders of record at close of business on
Sept. 20, 2011.
Company Outlook
Based on August orders and shipments, the company believes that
there has been some recovery in demand from July levels on a
seasonally adjusted basis, although not to the same level that
existed earlier in the year. Based on year-to-date results,
current tax rate expectations, current OCC costs and assuming that
product demand remains at August levels, and adjusting for the
company's mitigating actions, the company has adjusted its guidance
for the year to $4.15 - $4.30 per
fully diluted Class A share.
Conference Call
The company will host a conference call to discuss results for
the third quarter of 2011 on Sept. 1,
2011, 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. A replay of the
conference call will be available on the company's website
approximately one hour following the call.
About Greif
Greif is a world leader in industrial packaging products and
services. The company produces steel, plastic, fibre, flexible and
corrugated containers, containerboard and packaging accessories 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 the company's 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 the company's management.
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 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 the company's business, (ii)
historically, the company's business has been sensitive to changes
in general economic or business conditions, (iii) the company's
operations are subject to currency exchange and political risks,
(iv) the continuing consolidation of the company's customer base
and our suppliers may intensify pricing pressure, (v) the company
operates in highly competitive industries, (vi) the company's
business is sensitive to changes in industry demands, (vii) raw
material and energy price fluctuations and shortages may adversely
impact the company's manufacturing operations and costs, (viii) the
company may encounter difficulties arising from acquisitions, (ix)
the company may incur additional restructuring costs and there is
no guarantee that its efforts to reduce costs will be successful,
(x) tax legislation initiatives or challenges to the company's tax
positions may adversely impact its financial results or condition,
(xi) several operations are conducted by joint ventures that the
company cannot operate solely for its benefit, (xii) the company's
ability to attract, develop and retain talented employees, managers
and executives is critical to its success, (xiii) the company's
business may be adversely impacted by work stoppages and other
labor relations matters, (xiv) the company may be subject to losses
that might not be covered in whole or in part by existing insurance
reserves or insurance coverage, (xv) the company's business depends
on the uninterrupted operations of its facilities, systems and
business functions, including its information technology and other
business systems, (xvi) legislation/regulation related to climate
change and environmental and health and safety matters and product
liability claims could negatively impact the company's operations
and financial performance, (xvii) changing climate conditions may
adversely affect the company's operations and financial
performance, (xviii) the company may incur fines or penalties,
damage to reputation or other adverse consequences if its
employees, agents or business partners violate, or are alleged to
have violated, anti-bribery, competition or other laws, and (xix)
the frequency and volume of the company's timber and timberland
sales will impact its 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 the company's actual results to
differ materially from those projected, see "Risk Factors" in Part
I, Item 1A of the company's Form 10-K for the year ended
Oct. 31, 2010 and the company's 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, the
company undertakes 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 OPERATIONS
UNAUDITED
(Dollars and
shares in millions, except per share
amounts)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 1,122.0
|
|
$921.3
|
|
$ 3,116.5
|
|
$ 2,467.6
|
|
Cost of products sold
|
910.6
|
|
730.3
|
|
2,521.7
|
|
1,970.3
|
|
Gross profit
|
211.4
|
|
191.0
|
|
594.8
|
|
497.3
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
109.1
|
|
90.4
|
|
329.5
|
|
264.5
|
|
Restructuring charges
|
3.4
|
|
9.8
|
|
11.4
|
|
20.6
|
|
(Gain) on disposal of
properties, plants and equipment, net
|
(9.1)
|
|
(4.9)
|
|
(14.1)
|
|
(6.9)
|
|
Operating
profit
|
108.0
|
|
95.7
|
|
268.0
|
|
219.1
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
18.4
|
|
16.0
|
|
53.8
|
|
47.6
|
|
Other expense, net
|
4.5
|
|
0.7
|
|
9.9
|
|
4.4
|
|
Income before income tax
expense and equity earnings of unconsolidated affiliates, net
of tax
|
85.1
|
|
79.0
|
|
204.3
|
|
167.1
|
|
|
|
|
|
|
|
Income tax expense
|
21.6
|
|
14.4
|
|
49.6
|
|
31.6
|
|
Equity earnings of
unconsolidated affiliates, net of tax
|
1.5
|
|
3.2
|
|
2.0
|
|
3.3
|
|
Net income
|
65.0
|
|
67.8
|
|
156.7
|
|
138.8
|
|
Net income attributable to
noncontrolling interests
|
(2.0)
|
|
(1.8)
|
|
(1.4)
|
|
(5.4)
|
|
Net income attributable to
Greif, Inc.
|
$ 63.0
|
|
$ 66.0
|
|
$ 155.3
|
|
$ 133.4
|
|
|
|
|
|
|
|
Basic earnings per share
attributable to Greif, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
Class A Common Stock
|
$1.08
|
|
$1.13
|
|
$2.66
|
|
$2.29
|
|
Class B Common Stock
|
$1.61
|
|
$1.70
|
|
$3.98
|
|
$3.43
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
attributable to Greif, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
Class A Common Stock
|
$1.07
|
|
$1.12
|
|
$2.65
|
|
$2.28
|
|
Class B Common Stock
|
$1.61
|
|
$1.70
|
|
$3.98
|
|
$3.43
|
|
|
|
|
|
|
|
|
|
|
Shares used to calculate basic
earnings per share:
|
|
|
|
|
|
|
|
|
Class A Common Stock
|
24.9
|
|
24.7
|
|
24.8
|
|
24.6
|
|
Class B Common Stock
|
22.4
|
|
22.4
|
|
22.4
|
|
22.5
|
|
|
|
|
|
|
|
|
|
|
Shares used to calculate diluted
earnings per share:
|
|
|
|
|
|
|
|
|
Class A Common Stock
|
25.1
|
|
25.0
|
|
25.0
|
|
24.9
|
|
Class B Common Stock
|
22.4
|
|
22.4
|
|
22.4
|
|
22.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
July 31, 2011
|
|
Three months
ended
July 31, 2010
|
|
|
|
|
Diluted per
share amounts
|
|
|
|
Diluted per
share amounts
|
|
|
|
|
Class
A
|
|
Class
B
|
|
|
|
Class
A
|
|
Class
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
$108.0
|
|
|
|
|
|
$ 95.7
|
|
|
|
|
|
Restructuring
charges
|
3.4
|
|
|
|
|
|
9.8
|
|
|
|
|
|
Restructuring -
related inventory charges
|
-
|
|
|
|
|
|
0.1
|
|
|
|
|
|
Acquisition-related
costs
|
2.7
|
|
|
|
|
|
5.5
|
|
|
|
|
|
Non-cash intangible
asset impairment charge
|
3.0
|
|
|
|
|
|
-
|
|
|
|
|
|
Operating profit before special
items
|
$117.1
|
|
|
|
|
|
$111.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 63.0
|
|
$ 1.07
|
|
$ 1.61
|
|
$ 66.0
|
|
$ 1.12
|
|
$ 1.70
|
|
Restructuring
charges, net of tax
|
2.5
|
|
0.04
|
|
0.07
|
|
8.0
|
|
0.14
|
|
0.20
|
|
Restructuring -
related inventory charges, net of tax
|
-
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
Acquisition-related
costs, net of tax
|
2.0
|
|
0.03
|
|
0.05
|
|
4.5
|
|
0.08
|
|
0.12
|
|
Non-cash intangible
asset impairment charge, net of tax
|
2.2
|
|
0.04
|
|
0.06
|
|
-
|
|
-
|
|
-
|
|
Net income before special
items
|
$ 69.7
|
|
$ 1.18
|
|
$ 1.79
|
|
$ 78.6
|
|
$ 1.34
|
|
$ 2.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
July 31, 2011
|
|
Nine months
ended
July 31, 2010
|
|
|
|
|
Diluted per
share amounts
|
|
|
|
Diluted per
share amounts
|
|
|
|
|
Class
A
|
|
Class
B
|
|
|
|
Class
A
|
|
Class
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
$268.0
|
|
|
|
|
|
$219.1
|
|
|
|
|
|
Restructuring
charges
|
11.4
|
|
|
|
|
|
20.6
|
|
|
|
|
|
Restructuring -
related inventory charges
|
-
|
|
|
|
|
|
0.1
|
|
|
|
|
|
Acquisition-related
costs
|
19.2
|
|
|
|
|
|
20.1
|
|
|
|
|
|
Non-cash intangible
asset impairment charge
|
3.0
|
|
|
|
|
|
-
|
|
|
|
|
|
Operating profit before special
items
|
$301.6
|
|
|
|
|
|
$259.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$155.3
|
|
$ 2.65
|
|
$ 3.98
|
|
$133.4
|
|
$ 2.28
|
|
$ 3.43
|
|
Restructuring
charges, net of tax
|
8.6
|
|
0.14
|
|
0.23
|
|
16.7
|
|
0.28
|
|
0.43
|
|
Restructuring -
related inventory charges, net of tax
|
-
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
Acquisition-related
costs, net of tax
|
14.6
|
|
0.25
|
|
0.37
|
|
16.3
|
|
0.28
|
|
0.42
|
|
Non-cash intangible
asset impairment charge, net of tax
|
2.2
|
|
0.04
|
|
0.06
|
|
-
|
|
-
|
|
-
|
|
Net income before special
items
|
$180.7
|
|
$ 3.08
|
|
$ 4.64
|
|
$166.5
|
|
$ 2.84
|
|
$ 4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
SEGMENT
OPERATING PROFIT AND OTHER DATA
UNAUDITED
(Dollars
in millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
$
804.0
|
|
$
681.7
|
|
$
2,201.8
|
|
$
1,883.0
|
|
Flexible Products &
Services
|
141.2
|
|
66.9
|
|
404.0
|
|
128.7
|
|
Paper Packaging
|
172.8
|
|
168.8
|
|
496.1
|
|
444.5
|
|
Land Management
|
4.0
|
|
3.9
|
|
14.6
|
|
11.4
|
|
Total net
sales
|
$
1,122.0
|
|
$
921.3
|
|
$
3,116.5
|
|
$
2,467.6
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss):
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
$
72.0
|
|
$
71.5
|
|
$
184.2
|
|
$
184.4
|
|
Flexible Products &
Services
|
7.7
|
|
2.8
|
|
11.2
|
|
(1.5)
|
|
Paper Packaging
|
17.5
|
|
18.9
|
|
56.5
|
|
30.2
|
|
Land Management
|
10.8
|
|
2.5
|
|
16.1
|
|
6.0
|
|
Total operating
profit
|
108.0
|
|
95.7
|
|
268.0
|
|
219.1
|
|
Restructuring
charges:
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
3.4
|
|
5.2
|
|
8.0
|
|
15.9
|
|
Flexible Products &
Services
|
0.7
|
|
0.1
|
|
3.9
|
|
0.1
|
|
Paper Packaging
|
(0.7)
|
|
4.5
|
|
(0.5)
|
|
4.6
|
|
Total
restructuring charges
|
3.4
|
|
9.8
|
|
11.4
|
|
20.6
|
|
Restructuring - related
inventory charges:
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Total
restructuring - related inventory charges
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
2.1
|
|
2.6
|
|
6.3
|
|
6.4
|
|
Flexible Products &
Services
|
0.6
|
|
2.9
|
|
12.9
|
|
13.7
|
|
Total
acquisition-related costs
|
2.7
|
|
5.5
|
|
19.2
|
|
20.1
|
|
Non-cash intangible asset
impairment charge:
|
|
|
|
|
|
|
|
|
Flexible Products &
Services
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
Total non-cash
intangible asset impairment charge
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
Operating profit before special
items:
|
|
|
|
|
|
|
|
|
Rigid Industrial Packaging
& Services
|
77.5
|
|
79.4
|
|
198.5
|
|
206.8
|
|
Flexible Products &
Services
|
12.0
|
|
5.8
|
|
31.0
|
|
12.3
|
|
Paper Packaging
|
16.8
|
|
23.4
|
|
56.0
|
|
34.8
|
|
Land Management
|
10.8
|
|
2.5
|
|
16.1
|
|
6.0
|
|
Total operating
profit before special items
|
$
117.1
|
|
$
111.1
|
|
$
301.6
|
|
$
259.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GEOGRAPHIC
DATA
UNAUDITED
(Dollars in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
North America
|
$
502.4
|
|
$
465.3
|
|
$
1,426.2
|
|
$
1,247.1
|
|
Europe, Middle East and
Africa
|
445.4
|
|
313.7
|
|
1,197.0
|
|
826.7
|
|
Asia Pacific and Latin
America
|
174.2
|
|
142.3
|
|
493.3
|
|
393.8
|
|
Total net
sales
|
$
1,122.0
|
|
$
921.3
|
|
$
3,116.5
|
|
$
2,467.6
|
|
|
|
|
|
|
|
|
|
|
Operating profit before special
items:
|
|
|
|
|
|
|
|
|
North America
|
$
62.0
|
|
$
59.9
|
|
$
153.0
|
|
$
127.5
|
|
Europe, Middle East and
Africa
|
48.9
|
|
39.1
|
|
128.2
|
|
102.5
|
|
Asia Pacific and Latin
America
|
6.2
|
|
12.1
|
|
20.4
|
|
29.9
|
|
Total operating
profit before special items
|
$
117.1
|
|
$
111.1
|
|
$
301.6
|
|
$
259.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
CONSOLIDATED
EBITDA(4)
UNAUDITED
(Dollars in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
65.0
|
|
$
67.8
|
|
$
156.7
|
|
$
138.8
|
|
Plus: interest
expense, net
|
18.4
|
|
16.0
|
|
53.8
|
|
47.6
|
|
Plus: income tax
expense
|
21.6
|
|
14.4
|
|
49.6
|
|
31.6
|
|
Plus: depreciation,
depletion and amortization expense
|
34.9
|
|
27.7
|
|
102.6
|
|
84.9
|
|
Less: equity
earnings of unconsolidated affiliates, net of tax
|
1.5
|
|
3.2
|
|
2.0
|
|
3.3
|
|
EBITDA
|
138.4
|
|
122.7
|
|
360.7
|
|
299.6
|
|
Restructuring
charges
|
3.4
|
|
9.8
|
|
11.4
|
|
20.6
|
|
Restructuring -
related inventory charges
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Acquisition-related
costs
|
2.7
|
|
5.5
|
|
19.2
|
|
20.1
|
|
Non-cash intangible
asset impairment charge
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
EBITDA before special
items
|
$
147.5
|
|
$
138.1
|
|
$
394.3
|
|
$
340.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
65.0
|
|
$
67.8
|
|
$
156.7
|
|
$
138.8
|
|
Plus: interest
expense, net
|
18.4
|
|
16.0
|
|
53.8
|
|
47.6
|
|
Plus: income tax
expense
|
21.6
|
|
14.4
|
|
49.6
|
|
31.6
|
|
Plus: other
expense, net
|
4.5
|
|
0.7
|
|
9.9
|
|
4.4
|
|
Less: equity
earnings of unconsolidated affiliates, net of tax
|
1.5
|
|
3.2
|
|
2.0
|
|
3.3
|
|
Operating profit
|
108.0
|
|
95.7
|
|
268.0
|
|
219.1
|
|
Less: other
expense, net
|
4.5
|
|
0.7
|
|
9.9
|
|
4.4
|
|
Plus: depreciation,
depletion and amortization expense
|
34.9
|
|
27.7
|
|
102.6
|
|
84.9
|
|
EBITDA
|
138.4
|
|
122.7
|
|
360.7
|
|
299.6
|
|
Restructuring
charges
|
3.4
|
|
9.8
|
|
11.4
|
|
20.6
|
|
Restructuring -
related inventory charges
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Acquisition-related
costs
|
2.7
|
|
5.5
|
|
19.2
|
|
20.1
|
|
Non-cash intangible
asset impairment charge
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
EBITDA before special
items
|
$
147.5
|
|
$
138.1
|
|
$
394.3
|
|
$
340.4
|
|
|
|
|
|
|
|
|
|
|
(4) 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. EBITDA is a non-GAAP
financial measure. As demonstrated by this table, EBITDA can
be either reconciled to GAAP net income or GAAP operating
profit yielding the same result.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
SEGMENT
EBITDA(5)
UNAUDITED
(Dollars in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Rigid Industrial Packaging &
Services
|
|
|
|
|
|
|
|
|
Operating profit
|
$
72.0
|
|
$
71.5
|
|
$
184.2
|
|
$
184.4
|
|
Less: other expense
(income), net
|
2.9
|
|
0.3
|
|
7.5
|
|
4.3
|
|
Plus: depreciation
and amortization expense
|
22.4
|
|
18.4
|
|
64.6
|
|
59.6
|
|
EBITDA
|
91.5
|
|
89.6
|
|
241.3
|
|
239.7
|
|
Restructuring
charges
|
3.4
|
|
5.2
|
|
8.0
|
|
15.9
|
|
Restructuring -
related inventory charges
|
-
|
|
0.1
|
|
-
|
|
0.1
|
|
Acquisition-related
costs
|
2.1
|
|
2.6
|
|
6.3
|
|
6.4
|
|
EBITDA before special
items
|
$
97.0
|
|
$
97.5
|
|
$
255.6
|
|
$
262.1
|
|
|
|
|
|
|
|
|
|
|
Flexible Products &
Services
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
7.7
|
|
$
2.8
|
|
$
11.2
|
|
$
(1.5)
|
|
Less: other expense
(income), net
|
1.8
|
|
0.4
|
|
2.0
|
|
0.1
|
|
Plus: depreciation
and amortization expense
|
4.2
|
|
0.9
|
|
12.5
|
|
1.9
|
|
EBITDA
|
10.1
|
|
3.3
|
|
21.7
|
|
0.3
|
|
Restructuring
charges
|
0.7
|
|
0.1
|
|
3.9
|
|
0.1
|
|
Acquisition-related
costs
|
0.6
|
|
2.9
|
|
12.9
|
|
13.7
|
|
Non-cash intangible
asset impairment charge
|
3.0
|
|
-
|
|
3.0
|
|
-
|
|
EBITDA before special
items
|
$
14.4
|
|
$
6.3
|
|
$
41.5
|
|
$
14.1
|
|
|
|
|
|
|
|
|
|
|
Paper Packaging
|
|
|
|
|
|
|
|
|
Operating profit
|
$
17.5
|
|
$
18.9
|
|
$
56.5
|
|
$
30.2
|
|
Less: other expense
(income), net
|
(0.2)
|
|
-
|
|
0.4
|
|
-
|
|
Plus: depreciation
and amortization expense
|
7.8
|
|
7.8
|
|
23.4
|
|
21.6
|
|
EBITDA
|
25.5
|
|
26.7
|
|
79.5
|
|
51.8
|
|
Restructuring
charges
|
(0.7)
|
|
4.5
|
|
(0.5)
|
|
4.6
|
|
EBITDA before special
items
|
$
24.8
|
|
$
31.2
|
|
$
79.0
|
|
$
56.4
|
|
|
|
|
|
|
|
|
|
|
Land Management
|
|
|
|
|
|
|
|
|
Operating profit
|
$
10.8
|
|
$
2.5
|
|
$
16.1
|
|
$
6.0
|
|
Plus: depreciation,
depletion and amortization expense
|
0.5
|
|
0.6
|
|
2.1
|
|
1.8
|
|
EBITDA and EBITDA before special
items
|
$
11.3
|
|
$
3.1
|
|
$
18.2
|
|
$
7.8
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA
|
$
138.4
|
|
$
122.7
|
|
$
360.7
|
|
$
299.6
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA before
special items
|
$
147.5
|
|
$
138.1
|
|
$
394.3
|
|
$
340.4
|
|
|
|
|
|
|
|
|
|
|
(5) 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 by segment, which as demonstrated in the preceding
table is another method to achieve the same result.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in
millions)
|
|
|
July 31,
2011
|
|
October 31,
2010
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
109.1
|
|
$
107.0
|
|
Trade accounts
receivable
|
588.8
|
|
480.1
|
|
Inventories
|
484.8
|
|
396.6
|
|
Current portion related party
notes receivable
|
1.7
|
|
-
|
|
Other current assets
|
190.7
|
|
182.2
|
|
|
1,375.1
|
|
1,165.9
|
|
|
|
|
|
|
LONG-TERM ASSETS
|
|
|
|
|
Goodwill
|
794.8
|
|
709.7
|
|
Intangible assets
|
241.4
|
|
173.2
|
|
Related party note
receivable
|
19.5
|
|
-
|
|
Assets held by special purpose
entities
|
50.9
|
|
50.9
|
|
Other long-term
assets
|
134.3
|
|
123.6
|
|
|
1,240.9
|
|
1,057.4
|
|
|
|
|
|
|
PROPERTIES, PLANTS AND
EQUIPMENT
|
1,387.9
|
|
1,275.1
|
|
|
|
|
|
|
|
$
4,003.9
|
|
$
3,498.4
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Accounts payable
|
$
465.5
|
|
$
448.3
|
|
Short-term borrowings
|
117.4
|
|
60.9
|
|
Current portion of long-term
debt
|
12.5
|
|
12.5
|
|
Other current
liabilities
|
276.7
|
|
240.1
|
|
|
872.1
|
|
761.8
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
Long-term debt
|
1,255.8
|
|
953.1
|
|
Liabilities held by special
purpose entities
|
43.3
|
|
43.3
|
|
Other long-term
liabilities
|
359.6
|
|
384.8
|
|
|
1,658.7
|
|
1,381.2
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
1,473.1
|
|
1,355.4
|
|
|
|
|
|
|
|
$
4,003.9
|
|
$
3,498.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
GAAP TO
NON-GAAP RECONCILIATION
BALANCE
SHEET DATA
UNAUDITED
(Dollars in
millions)
|
|
|
July 31,
2011
|
|
October 31,
2010
|
|
July 31,
2010
|
|
|
|
|
|
|
|
|
Current assets
|
$
1,375.1
|
|
$
1,165.9
|
|
$
1,078.7
|
|
Less: current
liabilities
|
872.1
|
|
761.8
|
|
680.3
|
|
Working
capital
|
503.0
|
|
404.1
|
|
398.4
|
|
Less: cash and cash
equivalents
|
109.1
|
|
107.0
|
|
84.2
|
|
Net working
capital
|
$
393.9
|
|
$
297.1
|
|
$
314.2
|
|
|
|
|
|
|
|
|
Long-term debt
|
$
1,255.8
|
|
$
953.1
|
|
$
948.6
|
|
Plus: current portion of
long-term debt
|
12.5
|
|
12.5
|
|
20.0
|
|
Plus: short-term
borrowings
|
117.4
|
|
60.9
|
|
51.0
|
|
Less: cash and cash
equivalents
|
109.1
|
|
107.0
|
|
84.2
|
|
Net debt
|
$
1,276.6
|
|
$
919.5
|
|
$
935.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC.
AND SUBSIDIARY COMPANIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(Dollars in
millions)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
$
65.0
|
|
$
67.7
|
|
$
156.7
|
|
$
138.8
|
|
Depreciation, depletion and
amortization
|
34.9
|
|
27.7
|
|
102.6
|
|
84.9
|
|
Increase (decrease) in cash from
changes in certain
|
(64.5)
|
|
(21.4)
|
|
(236.6)
|
|
(205.9)
|
|
assets and liabilities and
other
|
|
|
|
|
|
|
|
|
Cash flows provided by
operating activities
|
35.4
|
|
74.0
|
|
22.7
|
|
17.8
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Acquisitions of companies, net
of cash acquired
|
(157.3)
|
|
(38.6)
|
|
(185.7)
|
|
(152.7)
|
|
Purchases of properties, plants
and equipment
|
(44.1)
|
|
(36.4)
|
|
(117.8)
|
|
(101.0)
|
|
Other
|
10.5
|
|
6.2
|
|
(7.4)
|
|
(6.5)
|
|
Cash flows used in
investing activities
|
(190.9)
|
|
(68.8)
|
|
(310.9)
|
|
(260.2)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds (payments) on
debt
|
188.5
|
|
(9.2)
|
|
357.5
|
|
258.9
|
|
Dividends paid
|
(24.6)
|
|
(24.5)
|
|
(73.4)
|
|
(68.6)
|
|
Other
|
1.4
|
|
27.3
|
|
(1.2)
|
|
27.7
|
|
Cash flows provided by
(used in) financing activities
|
165.3
|
|
(6.4)
|
|
282.9
|
|
218.0
|
|
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE RATES ON
CASH
|
3.8
|
|
0.4
|
|
7.4
|
|
(3.3)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
13.6
|
|
(0.8)
|
|
2.1
|
|
(27.7)
|
|
Cash and cash equivalents at
beginning of the period
|
95.5
|
|
85.0
|
|
107.0
|
|
111.9
|
|
Cash and cash equivalents at end
of the period
|
$
109.1
|
|
$
84.2
|
|
$
109.1
|
|
$
84.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Greif, Inc.