DELAWARE, Ohio, June 9,
2021 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a
global leader in industrial packaging products and services, today
announced second quarter 2021 results.
Second Quarter Financial Highlights include (all results
compared to the second quarter of 2020 unless otherwise
noted)(1):
- Net income of $149.8 million or
$2.51 per diluted Class A share
increased compared to net income of $11.4
million or $0.19 per diluted
Class A share. Net income, excluding the impact of
adjustments(2), of $67.3
million or $1.13 per diluted
Class A share increased compared to net income, excluding the
impact of adjustments, of $56.5
million or $0.95 per diluted
Class A share. Adjusted EBITDA(3) decreased by
$4.7 million to $176.6 million.
- Net cash provided by operating activities increased by
$52.5 million to a source of
$152.3 million. Adjusted free cash
flow(4) increased by $47.7
million to a source of $126.7
million.
- Total debt decreased by $368.9
million to $2,313.4 million.
Net debt(5) decreased by $406.9
million to $2,203.0 million
and decreased by $235.0 million
sequentially from the first quarter of 2021. The Company's leverage
ratio(6) decreased to 3.2x compared to 3.6x.
Strategic Actions and Announcements
- Completed the sale of approximately 69,200 acres of timberlands
in southwest Alabama to
Weyerhaeuser Company (NYSE: WY) for approximately $149.0 million in cash.
- Achieved record Intermediate Bulk Container (IBC) volume,
reflecting strong market demand.
- Reintroduced annual guidance given better visibility into the
remainder of the fiscal year and continued confidence in the
improving fundamentals of our business.
- Published Greif's 12th consecutive sustainability report
highlighting the Company's commitments to environmental, social and
governance (ESG) principles and key metrics. Also announced a new
science-aligned goal to reduce the Company's Scope 1 and 2
greenhouse gas emissions by 28% by 2030, versus a 2019
baseline.
"Greif delivered a strong second quarter, with solid results
across the company and meaningful progress against our strategy,"
said Pete Watson, Greif's President
and Chief Executive Officer. "In addition to strong underlying
business performance that drove improved earnings and free cash
flow, we enhanced colleague engagement and customer service levels,
advanced our commitment to sustainability and achieved a notable
reduction in our leverage. With improved visibility into customer
demand patterns, we are reintroducing annual guidance for fiscal
2021 and are well positioned to benefit from a growing global
economy."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As previously
reported, during the first quarter of 2021, the former Rigid
Industrial Packaging & Services and Flexible Products &
Services segments were combined into a single reportable segment
now known as the Global Industrial Packaging segment. 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.
|
(2)
|
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, loss (gain) on disposal of
properties, plants, equipment and businesses, net and timberland
gains, net.
|
(3)
|
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, plus timberland gains,
net.
|
(4)
|
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.
|
(5)
|
Net debt is defined
as total debt less cash and cash equivalents.
|
(6)
|
Leverage ratio is
defined as trailing twelve month EBITDA divided by net debt, each
as calculated under the terms of the Company's Amended and Restated
Credit Agreement dated as of February 11, 2019, filed as Exhibit
10.29 to the Company's Annual Report on Form 10-K for its fiscal
year ended October 31, 2020 (the "2019 Credit
Agreement").
|
|
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, Sustainability and Colleague
Engagement
The Company's consolidated CSI(7) score was 93.4
during the fiscal second quarter and 92.8 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 94.8, which
was 2.5% higher than the prior year quarter. CSI for the Paper
Packaging & Services segment was 91.5, which was roughly flat
to the prior year quarter.
During the quarter, the Company completed its 12th annual
sustainability report. The report is prepared in full
accordance with the GRI Standards: Core option and the
Sustainability Accounting Standards Board (SASB) Application
Guidance and fulfills the United Nations Global Compact annual
Communication on Progress. This is also our first report that
begins aligning our climate-related disclosures with
recommendations from the Task Force on Climate-related Financial
Disclosures (TCFD). The sustainability report is available for
review at https://sustainability.greif.com. Report highlights
include:
- Discussion of the drivers to Greif's sustainability strategy:
delivering superior customer service; reducing our footprint;
addressing risk; valuing our people; advancing the circular
economy; financial performance; and profitable growth
- An overview of Greif's value chain, key findings from the
Company's second materiality assessment and actions being taken in
response to the assessment
- In depth review of Greif's current sustainability goals,
performance and highlight stories
Finally, the Company believes that a team of highly engaged
colleagues is critical to providing industry leading customer
service that helps generate enhanced financial results. In order to
improve and track the Company's engagement levels, an annual survey
is administered to colleagues by Gallup. Based on feedback received
in Greif's most recent survey just completed, the Company's
engagement rating was in the 90th percentile of all Gallup
manufacturing clients.
Segment Results (all results compared to the second quarter
of 2020 unless otherwise noted)
Net sales are impacted mainly by the volume of primary
products(8) 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 second 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
|
4.5
|
%
|
|
0.2
|
%
|
Volume
|
3.3
|
%
|
|
14.0
|
%
|
Selling Prices and
Product Mix
|
13.1
|
%
|
|
7.2
|
%
|
Total Impact of
Primary Products
|
20.9
|
%
|
|
21.4
|
%
|
Global Industrial Packaging
Net sales increased by $128.0
million to $798.0 million. Net
sales excluding foreign currency translation increased by
$97.4 million primarily due to higher
volumes and higher average sale prices.
Gross profit increased by $26.9
million to $170.1 million. The
increase in gross profit was primarily due to the same factors that
impacted net sales.
Operating profit increased by $1.3
million to $76.4 million.
Adjusted EBITDA increased by $7.1
million to $106.2 million
primarily due to the same factors that impacted gross profit,
partially offset by higher SG&A expense that was mainly
attributable to higher incentive accruals.
Paper Packaging & Services
Net sales increased by $55.4
million to $537.0 million. Net
sales excluding foreign currency translation increased by
$54.6 million primarily due to higher
published containerboard and boxboard prices and higher volumes.
Net sales for the second quarter 2020 included $35.4 million of net sales attributable to
the divested Consumer Packaging Group business, which was sold on
April 1, 2020.
Gross profit decreased by $1.0
million to $93.9 million. The
decrease in gross profit was primarily due to higher old
corrugated container and other raw material input costs and higher
transportation expenses, mostly offset by higher net sales.
Operating profit increased by $32.8 million to $27.3 million due to the prior year quarter loss
of $38.6 million on divestment
of the Consumer Packaging Business, which was primarily related to
the allocation of goodwill to the transaction. Adjusted EBITDA
decreased by $10.8 million to
$68.3 million primarily due to the
same factors that impacted gross profit combined with the impact of
higher SG&A costs as a result of higher corporate allocations
resulting from higher incentive accruals at the corporate
level.
Land Management
Net sales decreased by $1.1
million to $5.6 million.
Operating profit increased by $94.5
million to $96.9 million
primarily due to the $95.7 million gain on sale of 69,200 acres
of timberlands in the quarter. Adjusted EBITDA decreased by
$1.0 million. Given the
completion of the timberland sale, the Company owns approximately
175,000 acres of timber properties in the southeastern United States as of April 30, 2021.
Tax Summary
During the second quarter, the Company recorded an income tax
rate of 10.1 percent. The Company's tax rate excluding the impact
of adjustments was 20.0 percent. Both tax rates reflect second
quarter benefits of $4.0 million
from return to provision adjustments and reserve releases due to
audit settlements and statute of limitations expirations. In
addition, the application of FIN 18 frequently causes fluctuations
in our quarterly effective tax rates. For fiscal 2021, the Company
expects its tax rate to range between 17.0 and 21.0 percent and its
tax rate excluding adjustments to range between 22.0 and 26.0
percent.
Dividend Summary
On June 8, 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 July 1,
2021, to stockholders of record at the close of business on
June 21, 2021.
Company Outlook
(in millions,
except per share amounts)
|
Fiscal 2021
Outlook
Reported at Q2
|
Class A earnings per
share before adjustments
|
$4.55 -
$4.85
|
Adjusted free cash
flow
|
$285 -
$325
|
Note: Fiscal 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 2021 Class A earnings per
share before adjustments guidance, a non-GAAP financial measure
which excludes restructuring charges, acquisition and integration
costs, non-cash asset impairment charges, non-cash pension
settlement (income) charges, incremental COVID-19 costs, net, loss
(gain) on the disposal of properties, plants, equipment and
businesses, net and timberland gains, net, is included in this
release because, due to the high variability and difficulty in
making accurate forecasts and projections of some of the excluded
information, together with some of the excluded information not
being ascertainable or accessible, we are unable to quantify
certain amounts that would be required to be included in the most
directly comparable GAAP financial measure without unreasonable
efforts. A reconciliation of 2021 adjusted free cash flow
guidance to forecasted net cash provided by operating activities,
the most directly comparable GAAP financial measure, is included in
this release.
(7)
|
Customer satisfaction
index (CSI) tracks a variety of internal metrics designed to
enhance the customer experience in dealing with Greif.
|
(8)
|
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 second
quarter of 2021 results on June 10,
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/8874456.
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 on
June 10, 2021. A digital replay of
the conference call will be available two hours following the call
on the company's web site at http://investor.greif.com. To access
the recording, guests can call (800) 585-8367 or (416) 621-4642 and
use the conference ID 8874456.
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
April 30,
|
|
Six months ended
April 30,
|
(in millions,
except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
$
|
1,340.6
|
|
|
$
|
1,158.3
|
|
|
$
|
2,487.1
|
|
|
$
|
2,270.7
|
|
Cost of products
sold
|
1,074.7
|
|
|
917.6
|
|
|
2,009.0
|
|
|
1,807.4
|
|
Gross
profit
|
265.9
|
|
|
240.7
|
|
|
478.1
|
|
|
463.3
|
|
Selling, general and
administrative expenses
|
146.8
|
|
|
121.1
|
|
|
281.1
|
|
|
256.5
|
|
Restructuring
charges
|
12.0
|
|
|
4.4
|
|
|
15.1
|
|
|
7.7
|
|
Acquisition and
integration related costs
|
1.8
|
|
|
4.8
|
|
|
3.8
|
|
|
9.9
|
|
Non-cash asset
impairment charges
|
0.2
|
|
|
1.3
|
|
|
1.5
|
|
|
1.4
|
|
Loss (gain) on
disposal of properties, plants and equipment, net
|
0.1
|
|
|
(1.3)
|
|
|
1.7
|
|
|
(1.8)
|
|
Loss on disposal of
businesses, net
|
0.1
|
|
|
38.4
|
|
|
—
|
|
|
38.4
|
|
Timberland gains,
net
|
(95.7)
|
|
|
—
|
|
|
(95.7)
|
|
|
—
|
|
Operating
profit
|
200.6
|
|
|
72.0
|
|
|
270.6
|
|
|
151.2
|
|
Interest expense,
net
|
26.7
|
|
|
29.3
|
|
|
51.9
|
|
|
60.0
|
|
Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Other expense,
net
|
2.8
|
|
|
1.1
|
|
|
2.8
|
|
|
2.4
|
|
Income before income
tax expense and equity earnings of unconsolidated affiliates,
net
|
171.0
|
|
|
41.6
|
|
|
207.3
|
|
|
88.9
|
|
Income tax
expense
|
17.3
|
|
|
26.5
|
|
|
23.4
|
|
|
37.9
|
|
Equity earnings of
unconsolidated affiliates, net of tax
|
(0.3)
|
|
|
(0.7)
|
|
|
(1.0)
|
|
|
(0.9)
|
|
Net income
|
154.0
|
|
|
15.8
|
|
|
184.9
|
|
|
51.9
|
|
Net income
attributable to noncontrolling interests
|
(4.2)
|
|
|
(4.4)
|
|
|
(11.7)
|
|
|
(8.2)
|
|
Net income
attributable to Greif, Inc.
|
$
|
149.8
|
|
|
$
|
11.4
|
|
|
$
|
173.2
|
|
|
$
|
43.7
|
|
Basic earnings per
share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
2.51
|
|
|
$
|
0.19
|
|
|
$
|
2.91
|
|
|
$
|
0.74
|
|
Class B common
stock
|
$
|
3.77
|
|
|
$
|
0.29
|
|
|
$
|
4.36
|
|
|
$
|
1.10
|
|
Diluted earnings
per share attributable to Greif, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
$
|
2.51
|
|
|
$
|
0.19
|
|
|
$
|
2.91
|
|
|
$
|
0.74
|
|
Class B common
stock
|
$
|
3.77
|
|
|
$
|
0.29
|
|
|
$
|
4.36
|
|
|
$
|
1.10
|
|
Shares used to
calculate basic earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
26.5
|
|
|
26.4
|
|
|
26.5
|
|
|
26.3
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
Shares used to
calculate diluted earnings per share attributable to Greif, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Class A common
stock
|
26.7
|
|
|
26.4
|
|
|
26.6
|
|
|
26.3
|
|
Class B common
stock
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
UNAUDITED
|
|
(in
millions)
|
April 30,
2021
|
|
October 31,
2020
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
110.4
|
|
|
$
|
105.9
|
|
Trade accounts
receivable
|
751.1
|
|
|
636.6
|
|
Inventories
|
371.9
|
|
|
293.6
|
|
Assets held by
special purpose entities
|
—
|
|
|
50.9
|
|
Other current
assets
|
149.3
|
|
|
215.8
|
|
|
1,382.7
|
|
|
1,302.8
|
|
LONG-TERM
ASSETS
|
|
|
|
Goodwill
|
1,531.2
|
|
|
1,518.4
|
|
Intangible
assets
|
683.2
|
|
|
715.3
|
|
Operating lease
assets
|
299.7
|
|
|
307.5
|
|
Other long-term
assets
|
192.0
|
|
|
140.0
|
|
|
2,706.1
|
|
|
2,681.2
|
|
PROPERTIES, PLANTS
AND EQUIPMENT
|
1,499.1
|
|
|
1,526.9
|
|
|
$
|
5,587.9
|
|
|
$
|
5,510.9
|
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
|
579.6
|
|
|
$
|
450.7
|
|
Short-term
borrowings
|
44.7
|
|
|
28.4
|
|
Current portion of
long-term debt
|
114.1
|
|
|
123.1
|
|
Current portion of
operating lease liabilities
|
52.7
|
|
|
52.3
|
|
Current portion of
liabilities held by special purpose entities
|
—
|
|
|
43.3
|
|
Other current
liabilities
|
318.8
|
|
|
302.3
|
|
|
1,109.9
|
|
|
1,000.1
|
|
LONG-TERM
LIABILITIES
|
|
|
|
Long-term
debt
|
2,154.6
|
|
|
2,335.5
|
|
Operating lease
liabilities
|
249.6
|
|
|
257.7
|
|
Other long-term
liabilities
|
624.8
|
|
|
696.9
|
|
|
3,029.0
|
|
|
3,290.1
|
|
REDEEMABLE
NONCONTROLLING INTERESTS
|
19.3
|
|
|
20.0
|
|
EQUITY
|
|
|
|
Total Greif, Inc.
equity
|
1,374.2
|
|
|
1,152.2
|
|
Noncontrolling
interests
|
55.5
|
|
|
48.5
|
|
|
1,429.7
|
|
|
1,200.7
|
|
|
$
|
5,587.9
|
|
|
$
|
5,510.9
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
UNAUDITED
|
|
|
Three months ended
April 30,
|
|
Six months ended
April 30,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
$
|
154.0
|
|
|
$
|
15.8
|
|
|
$
|
184.9
|
|
|
$
|
51.9
|
|
Depreciation,
depletion and amortization
|
58.8
|
|
|
61.2
|
|
|
118.1
|
|
|
122.5
|
|
Asset
impairments
|
0.2
|
|
|
1.3
|
|
|
1.5
|
|
|
1.4
|
|
Pension settlement
charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Timberland gains,
net
|
(95.7)
|
|
|
—
|
|
|
(95.7)
|
|
|
—
|
|
Other non-cash
adjustments to net income
|
(29.2)
|
|
|
55.4
|
|
|
(13.3)
|
|
|
63.0
|
|
Operating working
capital changes
|
8.6
|
|
|
(3.8)
|
|
|
(44.0)
|
|
|
(31.5)
|
|
Increase (decrease)
in cash from changes in other assets and liabilities
|
55.5
|
|
|
(30.1)
|
|
|
3.7
|
|
|
(87.9)
|
|
Net cash provided by
operating activities
|
152.3
|
|
|
99.8
|
|
|
163.8
|
|
|
119.3
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of
properties, plants and equipment
|
(30.3)
|
|
|
(27.9)
|
|
|
(57.7)
|
|
|
(65.4)
|
|
Purchases of and
investments in timber properties
|
(1.5)
|
|
|
(1.2)
|
|
|
(2.5)
|
|
|
(2.8)
|
|
Proceeds on the sale
of timberlands, net
|
145.1
|
|
|
—
|
|
|
145.1
|
|
|
—
|
|
Collections of
receivables held in special purpose entities
|
—
|
|
|
—
|
|
|
50.9
|
|
|
—
|
|
Payments for issuance
of loans receivable
|
—
|
|
|
—
|
|
|
(15.0)
|
|
|
—
|
|
Proceeds from the
sale of properties, plant and equipment and businesses,
net
|
—
|
|
|
83.1
|
|
|
—
|
|
|
84.6
|
|
Other
|
0.8
|
|
|
(3.6)
|
|
|
(2.5)
|
|
|
(3.6)
|
|
Net cash provided by
investing activities
|
114.1
|
|
|
50.4
|
|
|
118.3
|
|
|
12.8
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Payments on long-term
debt, net
|
(227.7)
|
|
|
(120.4)
|
|
|
(187.0)
|
|
|
(61.9)
|
|
Dividends paid to
Greif, Inc. shareholders
|
(26.3)
|
|
|
(26.1)
|
|
|
(52.2)
|
|
|
(52.0)
|
|
Payments for
liabilities held in special purpose entities
|
—
|
|
|
—
|
|
|
(43.3)
|
|
|
—
|
|
Other
|
(3.4)
|
|
|
(7.7)
|
|
|
(4.9)
|
|
|
(8.5)
|
|
Net cash used in
financing activities
|
(257.4)
|
|
|
(154.2)
|
|
|
(287.4)
|
|
|
(122.4)
|
|
Effects of exchange
rates on cash
|
—
|
|
|
(14.4)
|
|
|
9.8
|
|
|
(14.6)
|
|
Net increase
(decrease) in cash and cash equivalents
|
9.0
|
|
|
(18.4)
|
|
|
4.5
|
|
|
(4.9)
|
|
Cash and cash
equivalents, beginning of period
|
101.4
|
|
|
90.8
|
|
|
105.9
|
|
|
77.3
|
|
Cash and cash
equivalents, end of period
|
$
|
110.4
|
|
|
$
|
72.4
|
|
|
$
|
110.4
|
|
|
$
|
72.4
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
FINANCIAL
HIGHLIGHTS BY SEGMENT
|
UNAUDITED
|
|
|
Three months ended
April 30,
|
|
Six months ended
April 30,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Global Industrial
Packaging
|
$
|
798.0
|
|
|
$
|
670.0
|
|
|
$
|
1,457.3
|
|
|
$
|
1,301.7
|
|
Paper
Packaging & Services
|
537.0
|
|
|
481.6
|
|
|
1,017.9
|
|
|
955.3
|
|
Land
Management
|
5.6
|
|
|
6.7
|
|
|
11.9
|
|
|
13.7
|
|
Total net
sales
|
$
|
1,340.6
|
|
|
$
|
1,158.3
|
|
|
$
|
2,487.1
|
|
|
$
|
2,270.7
|
|
Gross
profit:
|
|
|
|
|
|
|
|
Global Industrial
Packaging
|
$
|
170.1
|
|
|
$
|
143.2
|
|
|
$
|
300.4
|
|
|
$
|
263.3
|
|
Paper
Packaging & Services
|
93.9
|
|
|
94.9
|
|
|
173.5
|
|
|
195.0
|
|
Land
Management
|
1.9
|
|
|
2.6
|
|
|
4.2
|
|
|
5.0
|
|
Total gross
profit
|
$
|
265.9
|
|
|
$
|
240.7
|
|
|
$
|
478.1
|
|
|
$
|
463.3
|
|
Operating profit
(loss):
|
|
|
|
|
|
|
|
Global Industrial
Packaging
|
$
|
76.4
|
|
|
$
|
75.1
|
|
|
$
|
130.4
|
|
|
$
|
119.9
|
|
Paper
Packaging & Services
|
27.3
|
|
|
(5.5)
|
|
|
41.6
|
|
|
27.0
|
|
Land
Management
|
96.9
|
|
|
2.4
|
|
|
98.6
|
|
|
4.3
|
|
Total operating
profit
|
$
|
200.6
|
|
|
$
|
72.0
|
|
|
$
|
270.6
|
|
|
$
|
151.2
|
|
EBITDA(9):
|
|
|
|
|
|
|
|
Global Industrial
Packaging
|
$
|
95.1
|
|
|
$
|
96.0
|
|
|
$
|
170.9
|
|
|
$
|
159.6
|
|
Paper
Packaging & Services
|
64.1
|
|
|
33.5
|
|
|
107.0
|
|
|
106.5
|
|
Land
Management
|
97.6
|
|
|
3.3
|
|
|
100.4
|
|
|
6.2
|
|
Total
EBITDA
|
$
|
256.8
|
|
|
$
|
132.8
|
|
|
$
|
378.3
|
|
|
$
|
272.3
|
|
Adjusted
EBITDA(10):
|
|
|
|
|
|
|
|
Global Industrial
Packaging
|
$
|
106.2
|
|
|
$
|
99.1
|
|
|
$
|
185.7
|
|
|
$
|
165.7
|
|
Paper
Packaging & Services
|
68.3
|
|
|
79.1
|
|
|
124.4
|
|
|
157.0
|
|
Land
Management
|
2.1
|
|
|
3.1
|
|
|
5.0
|
|
|
6.0
|
|
Total Adjusted
EBITDA
|
$
|
176.6
|
|
|
$
|
181.3
|
|
|
$
|
315.1
|
|
|
$
|
328.7
|
|
|
(9) 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.
|
(10)
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, plus timberland
gains, net.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
GAAP TO NON-GAAP
RECONCILIATION
|
CONSOLIDATED
ADJUSTED EBITDA
|
UNAUDITED
|
|
|
Three months ended
April 30,
|
|
Six months ended
April 30,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
154.0
|
|
|
$
|
15.8
|
|
|
$
|
184.9
|
|
|
$
|
51.9
|
|
Plus: Interest
expense, net
|
26.7
|
|
|
29.3
|
|
|
51.9
|
|
|
60.0
|
|
Plus: Income tax
expense
|
17.3
|
|
|
26.5
|
|
|
23.4
|
|
|
37.9
|
|
Plus: Depreciation,
depletion and amortization expense
|
58.8
|
|
|
61.2
|
|
|
118.1
|
|
|
122.5
|
|
EBITDA
|
$
|
256.8
|
|
|
$
|
132.8
|
|
|
$
|
378.3
|
|
|
$
|
272.3
|
|
Net income
|
$
|
154.0
|
|
|
$
|
15.8
|
|
|
$
|
184.9
|
|
|
$
|
51.9
|
|
Plus: Interest
expense, net
|
26.7
|
|
|
29.3
|
|
|
51.9
|
|
|
60.0
|
|
Plus: Income tax
expense
|
17.3
|
|
|
26.5
|
|
|
23.4
|
|
|
37.9
|
|
Plus: Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Plus: Other expense,
net
|
2.8
|
|
|
1.1
|
|
|
2.8
|
|
|
2.4
|
|
Plus: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.3)
|
|
|
(0.7)
|
|
|
(1.0)
|
|
|
(0.9)
|
|
Operating
profit
|
$
|
200.6
|
|
|
$
|
72.0
|
|
|
$
|
270.6
|
|
|
$
|
151.2
|
|
Less: Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Less: Other expense,
net
|
2.8
|
|
|
1.1
|
|
|
2.8
|
|
|
2.4
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.3)
|
|
|
(0.7)
|
|
|
(1.0)
|
|
|
(0.9)
|
|
Plus: Depreciation,
depletion and amortization expense
|
58.8
|
|
|
61.2
|
|
|
118.1
|
|
|
122.5
|
|
EBITDA
|
$
|
256.8
|
|
|
$
|
132.8
|
|
|
$
|
378.3
|
|
|
$
|
272.3
|
|
Plus: Restructuring
charges
|
12.0
|
|
|
4.4
|
|
|
15.1
|
|
|
7.7
|
|
Plus: Acquisition and
integration related costs
|
1.8
|
|
|
4.8
|
|
|
3.8
|
|
|
9.9
|
|
Plus: Non-cash asset
impairment charges
|
0.2
|
|
|
1.3
|
|
|
1.5
|
|
|
1.4
|
|
Plus: Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Plus: Incremental
COVID-19 costs, net (11)
|
1.2
|
|
|
0.9
|
|
|
1.8
|
|
|
0.9
|
|
Plus: Loss on disposal
of properties, plants, equipment, and businesses, net
|
0.2
|
|
|
37.1
|
|
|
1.7
|
|
|
36.6
|
|
Plus: Timberland
gains, net
|
(95.7)
|
|
|
—
|
|
|
(95.7)
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
176.6
|
|
|
$
|
181.3
|
|
|
$
|
315.1
|
|
|
$
|
328.7
|
|
|
(11)
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(12)
|
UNAUDITED
|
|
|
Three months ended
April 30,
|
|
Six months ended
April 30,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Global Industrial
Packaging
|
|
|
|
|
|
|
|
Operating
profit
|
76.4
|
|
|
75.1
|
|
|
130.4
|
|
|
119.9
|
|
Less: Other expense,
net
|
2.8
|
|
|
1.3
|
|
|
2.7
|
|
|
3.8
|
|
Less: Equity earnings
of unconsolidated affiliates, net of tax
|
(0.3)
|
|
|
(0.7)
|
|
|
(1.0)
|
|
|
(0.9)
|
|
Plus: Depreciation and
amortization expense
|
21.2
|
|
|
21.5
|
|
|
42.2
|
|
|
42.6
|
|
EBITDA
|
$
|
95.1
|
|
|
$
|
96.0
|
|
|
$
|
170.9
|
|
|
$
|
159.6
|
|
Plus: Restructuring
charges
|
10.2
|
|
|
2.7
|
|
|
13.0
|
|
|
5.0
|
|
Plus: Non-cash asset
impairment charges
|
0.2
|
|
|
1.3
|
|
|
1.5
|
|
|
1.4
|
|
Plus: Incremental
COVID-19 costs, net
|
0.5
|
|
|
0.4
|
|
|
0.8
|
|
|
0.4
|
|
Plus: Loss (gain) on
disposal of properties, plants, equipment and businesses,
net
|
0.2
|
|
|
(1.3)
|
|
|
(0.5)
|
|
|
(0.7)
|
|
Adjusted
EBITDA
|
$
|
106.2
|
|
|
$
|
99.1
|
|
|
$
|
185.7
|
|
|
$
|
165.7
|
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
27.3
|
|
|
(5.5)
|
|
|
41.6
|
|
|
27.0
|
|
Less: Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Less: Other (income)
expense, net
|
—
|
|
|
(0.2)
|
|
|
0.1
|
|
|
(1.4)
|
|
Plus: Depreciation and
amortization expense
|
36.9
|
|
|
38.8
|
|
|
74.1
|
|
|
78.0
|
|
EBITDA
|
$
|
64.1
|
|
|
$
|
33.5
|
|
|
$
|
107.0
|
|
|
$
|
106.5
|
|
Plus: Restructuring
charges
|
1.7
|
|
|
1.7
|
|
|
2.0
|
|
|
2.7
|
|
Plus: Acquisition and
integration related costs
|
1.8
|
|
|
4.8
|
|
|
3.8
|
|
|
9.9
|
|
Plus: Non-cash pension
settlement charges (income)
|
0.1
|
|
|
—
|
|
|
8.6
|
|
|
(0.1)
|
|
Plus: Incremental
COVID-19 costs, net
|
0.7
|
|
|
0.5
|
|
|
1.0
|
|
|
0.5
|
|
Plus: (Gain) loss on
disposal of properties, plants, equipment and businesses,
net
|
(0.1)
|
|
|
38.6
|
|
|
2.0
|
|
|
37.5
|
|
Adjusted
EBITDA
|
$
|
68.3
|
|
|
$
|
79.1
|
|
|
$
|
124.4
|
|
|
$
|
157.0
|
|
Land
Management
|
|
|
|
|
|
|
|
Operating
profit
|
96.9
|
|
|
2.4
|
|
|
98.6
|
|
|
4.3
|
|
Plus: Depreciation,
depletion and amortization expense
|
0.7
|
|
|
0.9
|
|
|
1.8
|
|
|
1.9
|
|
EBITDA
|
$
|
97.6
|
|
|
$
|
3.3
|
|
|
$
|
100.4
|
|
|
$
|
6.2
|
|
Plus: Restructuring
charges
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Plus: Loss (gain) on
disposal of properties, plants, equipment and businesses,
net
|
0.1
|
|
|
(0.2)
|
|
|
0.2
|
|
|
(0.2)
|
|
Plus: Timberland
gains, net
|
$
|
(95.7)
|
|
|
$
|
—
|
|
|
$
|
(95.7)
|
|
|
$
|
—
|
|
Adjusted
EBITDA
|
$
|
2.1
|
|
|
$
|
3.1
|
|
|
$
|
5.0
|
|
|
$
|
6.0
|
|
Consolidated
EBITDA
|
$
|
256.8
|
|
|
$
|
132.8
|
|
|
$
|
378.3
|
|
|
$
|
272.3
|
|
Consolidated Adjusted
EBITDA
|
$
|
176.6
|
|
|
$
|
181.3
|
|
|
$
|
315.1
|
|
|
$
|
328.7
|
|
|
(12)
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, plus timberland
gains, 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(13)
|
UNAUDITED
|
|
|
Three months ended
April 30,
|
Six months ended
April 30,
|
(in
millions)
|
2021
|
|
2020
|
2021
|
|
2020
|
Net cash provided
by operating activities
|
$
|
152.3
|
|
|
$
|
99.8
|
|
$
|
163.8
|
|
|
$
|
119.3
|
|
Cash paid for
purchases of properties, plants and equipment
|
(30.3)
|
|
|
(27.9)
|
|
(57.7)
|
|
|
(65.4)
|
|
Free cash
flow
|
$
|
122.0
|
|
|
$
|
71.9
|
|
$
|
106.1
|
|
|
$
|
53.9
|
|
Cash paid for
acquisition and integration related costs
|
1.8
|
|
|
5.8
|
|
3.8
|
|
|
9.9
|
|
Cash paid for
incremental COVID-19 costs, net
|
1.3
|
|
|
0.9
|
|
1.9
|
|
|
0.9
|
|
Cash paid for
acquisition and integration related ERP systems
|
1.6
|
|
|
0.4
|
|
3.4
|
|
|
1.0
|
|
Adjusted free cash
flow
|
$
|
126.7
|
|
|
$
|
79.0
|
|
$
|
115.2
|
|
|
$
|
65.7
|
|
|
(13)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
April 30, 2021
|
$
|
171.0
|
|
|
$
|
17.3
|
|
|
$
|
(0.3)
|
|
|
$
|
4.2
|
|
|
$
|
149.8
|
|
|
$
|
2.51
|
|
|
10.1
|
%
|
Restructuring
charges
|
12.0
|
|
|
2.8
|
|
|
—
|
|
|
1.3
|
|
|
7.9
|
|
|
0.13
|
|
|
|
Acquisition and
integration related costs
|
1.8
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
0.02
|
|
|
|
Non-cash asset
impairment charges
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
|
Non-cash pension
settlement charges
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
Incremental COVID-19
costs, net
|
1.2
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.01
|
|
|
|
Loss on disposal of
properties, plants, equipment and businesses, net
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Timberland gains,
net
|
(95.7)
|
|
|
(3.0)
|
|
|
—
|
|
|
—
|
|
|
(92.7)
|
|
|
$
|
(1.54)
|
|
|
|
Excluding
Adjustments
|
$
|
90.8
|
|
|
$
|
18.2
|
|
|
$
|
(0.3)
|
|
|
$
|
5.6
|
|
|
$
|
67.3
|
|
|
$
|
1.13
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
April 30, 2020
|
$
|
41.6
|
|
|
$
|
26.5
|
|
|
$
|
(0.7)
|
|
|
$
|
4.4
|
|
|
$
|
11.4
|
|
|
$
|
0.19
|
|
|
63.7
|
%
|
Restructuring
charges
|
4.4
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
0.05
|
|
|
|
Acquisition and
integration related costs
|
4.8
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
|
0.07
|
|
|
|
Non-cash asset
impairment charges
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
0.02
|
|
|
|
Incremental COVID-19
costs, net
|
0.9
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.01
|
|
|
|
Loss on disposal of
properties, plants, equipment and businesses, net
|
37.1
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
36.1
|
|
|
0.61
|
|
|
|
Excluding
Adjustments
|
$
|
90.1
|
|
|
$
|
29.4
|
|
|
$
|
(0.7)
|
|
|
$
|
4.9
|
|
|
$
|
56.5
|
|
|
$
|
0.95
|
|
|
32.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
April 30, 2021
|
$
|
207.3
|
|
|
$
|
23.4
|
|
|
$
|
(1.0)
|
|
|
$
|
11.7
|
|
|
$
|
173.2
|
|
|
$
|
2.91
|
|
|
11.3
|
%
|
Restructuring
charges
|
15.1
|
|
|
3.6
|
|
|
—
|
|
|
1.3
|
|
|
10.2
|
|
|
0.17
|
|
|
|
Acquisition and
integration related costs
|
3.8
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
0.05
|
|
|
|
Non-cash asset
impairment charges
|
1.5
|
|
|
0.5
|
|
|
—
|
|
|
0.1
|
|
|
0.9
|
|
|
0.02
|
|
|
|
Non-cash pension
settlement charges
|
8.6
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
6.5
|
|
|
0.09
|
|
|
|
Incremental COVID-19
costs, net
|
1.8
|
|
|
0.5
|
|
|
—
|
|
|
0.1
|
|
|
1.2
|
|
|
0.02
|
|
|
|
Loss on disposal of
properties, plants, equipment and businesses, net
|
1.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
0.02
|
|
|
|
Timberland gains,
net
|
(95.7)
|
|
|
(3.0)
|
|
|
—
|
|
|
—
|
|
|
(92.7)
|
|
|
(1.54)
|
|
|
|
Excluding
Adjustments
|
$
|
144.1
|
|
|
$
|
28.7
|
|
|
$
|
(1.0)
|
|
|
$
|
13.2
|
|
|
$
|
103.2
|
|
|
$
|
1.74
|
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
April 30, 2020
|
$
|
88.9
|
|
|
$
|
37.9
|
|
|
$
|
(0.9)
|
|
|
$
|
8.2
|
|
|
$
|
43.7
|
|
|
$
|
0.74
|
|
|
42.6
|
%
|
Restructuring
charges
|
7.7
|
|
|
1.9
|
|
|
—
|
|
|
0.3
|
|
|
5.5
|
|
|
0.09
|
|
|
|
Acquisition and
integration related costs
|
9.9
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|
0.13
|
|
|
|
Non-cash asset
impairment charges
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
0.02
|
|
|
|
Non-cash pension
settlement income
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
Incremental COVID-19
costs, net
|
0.9
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.01
|
|
|
|
Loss on disposal of
properties, plants, equipment and businesses, net
|
36.6
|
|
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
35.7
|
|
|
0.60
|
|
|
|
Excluding
Adjustments
|
$
|
145.3
|
|
|
$
|
42.8
|
|
|
$
|
(0.9)
|
|
|
$
|
9.0
|
|
|
$
|
94.4
|
|
|
$
|
1.59
|
|
|
29.5
|
%
|
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
April 30,
|
|
|
|
|
(in
millions)
|
2021
|
|
2020
|
|
Increase
(Decrease) in
Net Sales
($)
|
|
Increase
(Decrease) in
Net Sales
(%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,340.6
|
|
|
$
|
1,158.3
|
|
|
$
|
182.3
|
|
|
15.7
|
%
|
Currency
Translation
|
(31.4)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,309.2
|
|
|
$
|
1,158.3
|
|
|
$
|
150.9
|
|
|
13.0
|
%
|
Global Industrial
Packaging
|
|
|
|
|
|
|
|
Net Sales
|
$
|
798.0
|
|
|
$
|
670.0
|
|
|
$
|
128.0
|
|
|
19.1
|
%
|
Currency
Translation
|
(30.6)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
767.4
|
|
|
$
|
670.0
|
|
|
$
|
97.4
|
|
|
14.5
|
%
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
$
|
537.0
|
|
|
$
|
481.6
|
|
|
$
|
55.4
|
|
|
11.5
|
%
|
Currency
Translation
|
(0.8)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
536.2
|
|
|
$
|
481.6
|
|
|
$
|
54.6
|
|
|
11.3
|
%
|
|
|
|
Six months ended
April 30,
|
|
|
|
|
(in
millions)
|
2021
|
|
2020
|
|
Increase
(Decrease) in
Net Sales
($)
|
|
Increase
(Decrease) in
Net Sales
(%)
|
Consolidated
|
|
|
|
|
|
|
|
Net Sales
|
$
|
2,487.1
|
|
|
$
|
2,270.7
|
|
|
$
|
216.4
|
|
|
9.5
|
%
|
Currency
Translation
|
(40.2)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
2,446.9
|
|
|
$
|
2,270.7
|
|
|
$
|
176.2
|
|
|
7.8
|
%
|
Global Industrial
Packaging
|
|
|
|
|
|
|
|
Net Sales
|
$
|
1,457.3
|
|
|
$
|
1,301.7
|
|
|
$
|
155.6
|
|
|
12.0
|
%
|
Currency
Translation
|
(39.3)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,418.0
|
|
|
$
|
1,301.7
|
|
|
$
|
116.3
|
|
|
8.9
|
%
|
Paper
Packaging & Services
|
|
|
|
|
|
|
|
Net Sales
|
1,017.9
|
|
|
955.3
|
|
|
$
|
62.6
|
|
|
6.6
|
%
|
Currency
Translation
|
(0.9)
|
|
|
N/A
|
|
|
|
|
|
Net Sales Excluding
the Impact of Currency Translation
|
$
|
1,017.0
|
|
|
$
|
955.3
|
|
|
$
|
61.7
|
|
|
6.5
|
%
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
GAAP TO NON-GAAP
RECONCILIATION
|
NET
DEBT
|
UNAUDITED
|
|
(in
millions)
|
April 30,
2021
|
|
January 31,
2021
|
|
April 30,
2020
|
Total Debt
|
$
|
2,313.4
|
|
|
$
|
2,539.4
|
|
|
$
|
2,682.3
|
|
Cash and cash
equivalents
|
(110.4)
|
|
|
(101.4)
|
|
|
(72.4)
|
|
Net
Debt
|
$
|
2,203.0
|
|
|
$
|
2,438.0
|
|
|
$
|
2,609.9
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
GAAP TO NON-GAAP
RECONCILIATION
|
LEVERAGE
RATIO
|
UNAUDITED
|
|
Trailing Twelve
Month Credit Agreement EBITDA
(in
millions)
|
Trailing Twelve
Months
Ended 4/30/2021
|
Trailing Twelve
Months
Ended 4/30/2020
|
Net income
|
$
|
257.3
|
|
$
|
189.2
|
|
Plus: Interest expense,
net
|
107.7
|
|
126.9
|
|
Plus: Debt
extinguishment charges
|
—
|
|
0.1
|
|
Plus: Income tax
expense
|
48.8
|
|
77.1
|
|
Plus: Depreciation,
depletion and amortization expense
|
238.1
|
|
241.8
|
|
EBITDA
|
$
|
651.9
|
|
$
|
635.1
|
|
Plus: Restructuring
charges
|
46.1
|
|
22.6
|
|
Plus: Acquisition and
integration related costs
|
10.9
|
|
23.2
|
|
Plus: Non-cash asset
impairment charges
|
18.6
|
|
7.1
|
|
Plus: Non-cash pension
settlement charges (income)
|
9.0
|
|
(0.1)
|
|
Plus: Incremental
COVID-19 costs, net
|
3.5
|
|
0.9
|
|
Plus: (Gain) loss on
disposal of properties, plants, equipment, and businesses,
net
|
(15.3)
|
|
30.5
|
|
Plus: Timberland gains,
net
|
(95.7)
|
|
—
|
|
Adjusted
EBITDA
|
$
|
629.0
|
|
$
|
719.3
|
|
Credit Agreement
adjustments to EBITDA(14)
|
34.0
|
|
4.4
|
|
Credit Agreement
EBITDA
|
$
|
663.0
|
|
$
|
723.7
|
|
|
|
|
Adjusted Net
Debt
(in
millions)
|
For the Period
Ended
4/30/2021
|
For the Period
Ended
4/30/2020
|
Total debt
|
$
|
2,313.4
|
|
$
|
2,682.3
|
|
Cash and cash
equivalents
|
(110.4)
|
|
(72.4)
|
|
Net debt
|
$
|
2,203.0
|
|
$
|
2,609.9
|
|
Credit Agreement
adjustments to debt(15)
|
(90.9)
|
|
2.3
|
|
Adjusted net
debt
|
$
|
2,112.1
|
|
$
|
2,612.2
|
|
|
|
|
Leverage
Ratio
|
3.2x
|
|
3.6x
|
|
|
(14)Adjustments to EBITDA are specified by
the 2019 Credit Agreement and include certain timberland gains,
equity earnings of unconsolidated affiliates, net of tax, certain
acquisition savings, deferred financing costs, capitalized
interest, and other items.
|
(15)Adjustments to net debt are specified
by the 2019 Credit Agreement and include the European accounts
receivable program, letters of credit, deferred financing costs,
and derivative balances.
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
PROJECTED 2021
GUIDANCE RECONCILIATION
|
ADJUSTED FREE CASH
FLOW
|
UNAUDITED
|
|
|
Fiscal 2021
Guidance Range
|
(in
millions)
|
Scenario
1
|
|
Scenario
2
|
Net cash provided
by operating activities
|
$
|
405.0
|
|
|
$
|
462.0
|
|
Cash paid for
purchases of properties, plants and equipment
|
(137.0)
|
|
|
(158.0)
|
|
Free cash
flow
|
$
|
268.0
|
|
|
$
|
304.0
|
|
Cash paid for
acquisition and integration related costs
|
7.0
|
|
|
9.0
|
|
Cash paid for
incremental COVID-19 costs, net
|
3.0
|
|
|
4.0
|
|
Cash paid for
acquisition and integration related ERP systems
|
7.0
|
|
|
8.0
|
|
Adjusted free cash
flow
|
$
|
285.0
|
|
|
$
|
325.0
|
|
GREIF, INC. AND
SUBSIDIARY COMPANIES
|
PROJECTED 2021
MODELING ASSUMPTIONS
|
UNAUDITED
|
|
(in
millions)
|
Fiscal 2021
Modeling Assumptions
Reported at Q2
|
Depreciation and
amortization expense
|
$237 -
$242
|
Interest expense,
net
|
$97 - $101
|
Tax rate excluding
the impact of special items
|
22% - 26%
|
Adjusted capital
expenditures
|
$130 -
$150
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/greif-reports-strong-second-quarter-2021-results-reintroduces-fiscal-2021-earnings-guidance-301309433.html
SOURCE Greif, Inc.