Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial
packaging products and services, today announced fourth quarter and
fiscal 2023 results.
Fourth Quarter Results
Include (all results compared to the
fourth quarter
2022 unless otherwise noted):
-
Net income of $67.8 million or $1.16 per diluted Class A share
compared to net income of $99.5 million or $1.67 per diluted Class
A share. Net income, excluding the impact of adjustments(1), of
$90.9 million or $1.56 per diluted Class A share compared to net
income, excluding the impact of adjustments, of $109.0 million or
$1.83 per diluted Class A share.
-
Adjusted EBITDA(2) of $199.2 million, a decrease of
$19.5 million, compared to Adjusted EBITDA of $218.7
million.
-
Net cash provided by operating activities decreased by
$83.1 million to $203.5 million. Adjusted free cash flow(3)
decreased by $98.3 million to $136.2 million.
Fiscal Year Results Include (all results
compared to the fiscal year 2022
unless otherwise noted):
-
Net income of $359.2 million or $6.15 per diluted Class A share
compared to net income of $376.7 million or $6.30 per diluted Class
A share. Net income, excluding the impact of adjustments, of $358.7
million or $6.14 per diluted Class A share compared to net income,
excluding the impact of adjustments, of $471.2 million or $7.87 per
diluted Class A share.
-
Adjusted EBITDA of $818.8 million, a decrease of
$98.7 million, compared to Adjusted EBITDA of $917.5
million.
-
Net cash provided by operating activities decreased by
$8.0 million to $649.5 million. Adjusted free cash flow
decreased by $25.1 million to $481.2 million.
- Total debt increased by
$299.0 million to $2,215.1 million related to acquisitions
closed during the year. Net debt(4) increased by
$265.2 million to $2,034.2 million. The Company's leverage
ratio(5) increased to 2.2x from 1.73x and also from 2.17x
sequentially, which is within our targeted leverage ratio range
of 2.0x - 2.5x.
-
The Company increased its quarterly dividend by 4% during the year,
paying a record $116.5 million in cash dividends to stockholders in
fiscal 2023.
Strategic Actions and
Announcements
-
Completed acquisition of 100% ownership interest in Reliance
Products, Ltd., a leading producer of high-performance barrier and
conventional blow molded jerrycans and small plastic containers in
Canada, as of October 1, 2023.
- Signed definitive agreement to
acquire 100% ownership interest in Ipackchem Group SAS, a global
leader in premium barrier and non-barrier jerrycans and small
plastic containers, from an affiliate of SK Capital Partners, in a
cash transaction valued at $538(8) million. The transaction will be
funded through available capacity in the Company’s existing credit
facilities and is expected to close by the end of the second
quarter of the Company’s 2024 fiscal year, subject to various
closing conditions, including governmental and regulatory
clearances.
CEO Commentary
“I am deeply proud of our team and the results
they delivered in fiscal 2023, in the face of market headwinds,
which persisted over the balance of the year. Facing this historic
volume adversity, our team worked collaboratively to take necessary
and decisive action to deliver exceptional value for our customers
and our shareholders. As a result of that work, I am pleased to
share that 2023 was the second-best year in Greif’s 146-year
history for recorded Adjusted EBITDA and Adjusted Free Cash Flow –
a truly remarkable achievement. In addition, during the year we
deployed over $550 million towards acquisitions and continued to
resource ongoing internal initiatives to bolster our long-term
trajectory and enhance shareholder value. As we continue to invest
and advance our Build to Last strategy, I am humbled by our team’s
execution and commitment, and excited about Greif's future as we
look ahead through 2024.”
Build to Last Mission
Progress
Customer satisfaction is a key component of our
mission to Deliver Legendary Customer Service. Our consolidated
CSI(6) score was 93.1 at the end of the fourth quarter 2023. Paper
Packaging & Services CSI score was 92.6, and Global Industrial
Packaging CSI score was 93.7. Additionally, we have recently
completed our thirteenth wave NPS(7) survey, receiving feedback
from nearly five thousand customers globally for a net score of 68,
a five percent improvement over the previous year survey which
solidifies Greif as a leader in customer service within the
manufacturing industry. We thank our customers for their continued
feedback which is critical to helping us achieve our vision to be
the best performing customer service company in the world, and we
are proud to continue to earn positive feedback from our customers
throughout a difficult global operating environment.
(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, and (gain) loss on disposal of properties, plants,
equipment and businesses, net. |
(2) |
Adjusted
EBITDA is defined as net income, plus interest expense, net, plus
debt extinguishment charges, 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, plus (gain) loss 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 integration related Enterprise Resource
Planning ("ERP") systems and equipment, plus cash paid for debt
issuance costs, plus cash proceeds redeployment related to
replacement of non-operating corporate asset, plus cash paid for
taxes related to Tama, Iowa mill divestment. |
(4) |
Net debt
is defined as total debt less cash and cash equivalents. |
(5) |
Leverage
ratio for the periods indicated is defined as net debt divided by
trailing twelve month EBITDA, each as calculated under the terms of
the Company's Second Amended and Restated Credit Agreement dated as
of March 1, 2022, filed as Exhibit 10.1 to the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended January 31, 2022
(the "2022 Credit Agreement"). |
(6) |
Customer
satisfaction index ("CSI") tracks a variety of internal metrics
designed to enhance the customer experience in dealing with
Greif. |
(7) |
Net
Promoter Score ("NPS") is derived from a survey conducted by a
third party that measures how likely a customer is to recommend
Greif as a business partner. NPS scores are calculated by
subtracting the percentage of detractors a business has from the
percentage of its promoters. |
(8) |
Transaction value translated based on 1.05/1.00 EUR to USD
exchange rate as of October 18, 2023, as disclosed in our press
release dated October 31, 2023. |
|
|
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.
Segment Results (all results compared to
the fourth quarter of
2022 unless otherwise noted)
Net sales are impacted mainly by the volume of
primary products(9) sold, selling prices, product mix and the
impact of changes in foreign currencies against the U.S. dollar.
The table below shows the percentage impact of each of these items
on net sales for our primary products for the fourth quarter of
2023 as compared to the prior year quarter for the business
segments with manufacturing operations. Net sales from Lee
Container, Centurion Container, ColePak and Reliance’s primary
products are not included in the table below, but will be included
in their respective segments starting in the first fiscal quarter
for Lee Container, second fiscal quarter for Centurion Container
and fourth fiscal quarter for ColePak and Reliance.
Net Sales Impact - Primary Products |
|
Global Industrial Packaging |
|
|
|
Paper Packaging &Services |
Currency Translation |
|
(2.2 |
)% |
|
|
— |
% |
Volume |
|
(10.1 |
)% |
|
|
(5.0 |
)% |
Selling Prices and Product Mix |
|
(6.6 |
)% |
|
|
(9.9 |
)% |
Total Impact of Primary Products |
|
(18.9 |
)% |
|
|
(14.9 |
)% |
|
Global Industrial Packaging
Net sales decreased by $103.9 million to
$721.0 million primarily due to lower volumes and lower average
selling prices as a result of contractual price adjustment
mechanisms.
Gross profit increased by $1.9 million to
$154.4 million due to lower raw material costs, largely offset by
the same factors that impacted net sales.
Operating profit increased by $7.6 million
to $75.1 million primarily due to the same factors that impacted
gross profit. Adjusted EBITDA increased by $8.2 million to
$104.2 million primarily due to the same factors that impacted
gross profit.
Paper Packaging &
Services
Net sales decreased by $84.0 million to
$581.6 million primarily due to lower volumes and lower average
selling prices due to lower published containerboard and boxboard
prices.
Gross profit decreased by $36.8 million to
$118.8 million. The decrease in gross profit was primarily due to
the same factors that impacted net sales, partially offset by lower
old corrugated container and other raw material input costs, as
well as lower transportation and manufacturing costs.
Operating profit decreased by $48.1 million
to $35.3 million primarily due to the same factors that impacted
gross profit, as well as a non-cash impairment charge and
restructuring charges related to optimizing and rationalizing
operations. Adjusted EBITDA decreased by $28.3 million to
$92.5 million primarily due to the same factors that impacted gross
profit, partially offset by lower selling, general and
administrative costs.
Tax Summary
During the fourth quarter, we recorded an income
tax rate of 12.0 percent and a tax rate excluding the impact of
adjustments of 14.9 percent. Note that the application of
accounting for income taxes often causes fluctuations in our
quarterly effective tax rates. For the full year, we recorded an
income tax rate of 23.8 percent and a tax rate excluding the impact
of adjustments of 23.1 percent.
Dividend Summary
On December 5, 2023, the Board of Directors
declared quarterly cash dividends of $0.52 per share of Class A
Common Stock and $0.77 per share of Class B Common Stock. Dividends
are payable on January 1, 2024, to stockholders of record at the
close of business on December 18, 2023.
(9) |
Primary
products are manufactured steel, plastic and fibre drums; new and
reconditioned intermediate bulk containers; linerboard,
containerboard, corrugated sheets and corrugated containers,
boxboard and tube and core products. |
|
|
Company Outlook
Given the deterioration of product demand in the
past year and the degree of uncertainty in the forward looking
macro-economic environment, we are unable to determine the
trajectory of product demand for the upcoming fiscal year. As a
result, we are providing only a low-end guidance estimate that is
based on the continuation of demand trends reflected in the past
year and the current price/cost factors in Paper Packaging and
Services. The low-end guidance estimate does not factor in any
contribution from the recently announced proposed acquisition of
Ipackchem.
(in millions, except per share amounts) |
|
Fiscal 2024 Low-End
Guidance Estimate |
|
Adjusted EBITDA |
|
$585 |
|
Adjusted free cash flow |
|
$200 |
|
|
|
|
|
Note: Fiscal 2024 net income guidance, the most
directly comparable GAAP financial measure to Adjusted EBITDA, 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
or properties, plants and equipment, net; non-cash asset impairment
charges due to unanticipated changes in the business;
restructuring-related activities; acquisition and integration
related costs; and ongoing initiatives under our Build to Last
strategy. No reconciliation of the 2024 low-end guidance estimate
of Adjusted EBITDA, a non-GAAP financial measure which excludes
restructuring charges, acquisition and integration related costs,
non-cash asset impairment charges, and (gain) loss on the disposal
of properties, plants, equipment and businesses, 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
net income, the most directly comparable GAAP financial measure,
without unreasonable efforts. A reconciliation of 2024 low-end
guidance estimate of adjusted free cash flow to fiscal 2024
forecasted net cash provided by operating activities, the most
directly comparable GAAP financial measure, is included in this
release.
Conference Call
The Company will host a conference call to
discuss the fourth quarter and fiscal 2023 results on December 7,
2023, at 8:30 a.m. Eastern Time (ET). Participants may access the
call using the following online registration link:
https://register.vevent.com/register/BI180ac1519c3b41f8a29a8985162f92f6.
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 December 7, 2023. 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.
Investor Relations contact
information
Matt Leahy, Vice President, Corporate
Development & Investor Relations, 740-549-6158.
Matthew.Leahy@Greif.com
About Greif
Greif is a global leader in industrial packaging
products and services and is pursuing its vision: to 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, the Company manages timber properties in
the southeastern United States. The Company is strategically
positioned in over 35 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, 2023. 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 political risks, instability and currency exchange
that could adversely affect our results of operations, (iii) the
current and future challenging global economy and disruption and
volatility of the financial and credit markets may adversely affect
our business, (iv) the continuing consolidation of our customer
base and suppliers may intensify pricing pressure, (v) we operate
in highly competitive industries, (vi) our business is sensitive to
changes in industry demands and customer preferences, (vii) raw
material, price fluctuations, global supply chain disruptions and
increased inflation may adversely impact our results of operations,
(viii) energy and transportation price fluctuations and shortages
may adversely impact our manufacturing operations and costs, (ix)
we may encounter difficulties or liabilities arising from
acquisitions or divestitures, (x) we may incur additional
rationalization costs and there is no guarantee that our efforts to
reduce costs will be successful, (xi) several operations are
conducted by joint ventures that we cannot operate solely for our
benefit, (xii) certain of the agreements that govern our joint
ventures provide our partners with put or call options, (xiii) our
ability to attract, develop and retain talented and qualified
employees, managers and executives is critical to our success,
(xiv) our business may be adversely impacted by work stoppages and
other labor relations matters, (xv) 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, (xvi) our business depends on the
uninterrupted operations of our facilities, systems and business
functions, including our information technology and other business
systems, (xvii) a cyber-attack or a security breach involving
customer, employee, supplier or Company information and data
privacy risks and costs of compliance with new regulations may have
a material adverse effect on our business, financial condition,
results of operations and cash flows, (xviii) we could be subject
to changes to our tax rates, the adoption of new U.S. or foreign
tax legislation or exposure to additional tax liabilities, (xix) we
have a significant amount of goodwill and long-lived assets which,
if impaired in the future, would adversely impact our results of
operations, (xx) changing climate, global climate change
regulations and greenhouse gas effects may adversely affect our
operations and financial performance, (xxi) we may be unable to
achieve our greenhouse gas emission reduction targets by 2030,
(xxii) legislation/regulation related to environmental and health
and safety matters and corporate social responsibility could
negatively impact our operations and financial performance, (xxiii)
product liability claims and other legal proceedings could
adversely affect our operations and financial performance, and
(xxiv) 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.
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.
GREIF, INC. AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED
STATEMENTS OF INCOMEUNAUDITED |
|
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in millions, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
$ |
1,308.4 |
|
|
$ |
1,495.8 |
|
|
$ |
5,218.6 |
|
|
$ |
6,349.5 |
|
Cost of products sold |
|
1,032.7 |
|
|
|
1,185.7 |
|
|
|
4,072.5 |
|
|
|
5,064.1 |
|
Gross profit |
|
275.7 |
|
|
|
310.1 |
|
|
|
1,146.1 |
|
|
|
1,285.4 |
|
Selling, general and
administrative expenses |
|
136.8 |
|
|
|
140.4 |
|
|
|
549.1 |
|
|
|
581.0 |
|
Acquisition and integration
related costs |
|
3.5 |
|
|
|
2.9 |
|
|
|
19.0 |
|
|
|
8.7 |
|
Restructuring charges |
|
5.2 |
|
|
|
2.7 |
|
|
|
18.7 |
|
|
|
13.0 |
|
Non-cash asset impairment
charges |
|
16.9 |
|
|
|
7.9 |
|
|
|
20.3 |
|
|
|
71.0 |
|
(Gain) loss on disposal of
properties, plants and equipment, net |
|
0.8 |
|
|
|
— |
|
|
|
(2.5 |
) |
|
|
(8.1 |
) |
(Gain) loss on disposal of
businesses, net |
|
0.1 |
|
|
|
2.8 |
|
|
|
(64.0 |
) |
|
|
(1.4 |
) |
Operating profit |
|
112.4 |
|
|
|
153.4 |
|
|
|
605.5 |
|
|
|
621.2 |
|
Interest expense, net |
|
24.8 |
|
|
|
16.9 |
|
|
|
96.3 |
|
|
|
61.2 |
|
Non-cash pension settlement
charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Debt extinguishment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25.4 |
|
Other (income) expense, net |
|
1.4 |
|
|
|
4.0 |
|
|
|
11.0 |
|
|
|
8.9 |
|
Income before income tax expense and equity earnings of
unconsolidated affiliates, net |
|
82.7 |
|
|
|
132.5 |
|
|
|
494.7 |
|
|
|
525.7 |
|
Income tax expense |
|
9.9 |
|
|
|
31.7 |
|
|
|
117.8 |
|
|
|
137.1 |
|
Equity earnings of unconsolidated
affiliates, net of tax |
|
(0.5 |
) |
|
|
(1.8 |
) |
|
|
(2.2 |
) |
|
|
(5.4 |
) |
Net income |
|
73.3 |
|
|
|
102.6 |
|
|
|
379.1 |
|
|
|
394.0 |
|
Net income attributable to
noncontrolling interests |
|
(5.5 |
) |
|
|
(3.1 |
) |
|
|
(19.9 |
) |
|
|
(17.3 |
) |
Net income attributable to Greif, Inc. |
$ |
67.8 |
|
|
$ |
99.5 |
|
|
$ |
359.2 |
|
|
$ |
376.7 |
|
Basic earnings per share
attributable to Greif, Inc. common shareholders: |
|
|
|
|
|
|
|
Class A common stock |
$ |
1.19 |
|
|
$ |
1.70 |
|
|
$ |
6.22 |
|
|
$ |
6.36 |
|
Class B common stock |
$ |
1.78 |
|
|
$ |
2.55 |
|
|
$ |
9.32 |
|
|
$ |
9.53 |
|
Diluted earnings per
share attributable to Greif, Inc. common
shareholders: |
|
|
|
|
|
|
|
Class A common stock |
$ |
1.16 |
|
|
$ |
1.67 |
|
|
$ |
6.15 |
|
|
$ |
6.30 |
|
Class B common stock |
$ |
1.78 |
|
|
$ |
2.55 |
|
|
$ |
9.32 |
|
|
$ |
9.53 |
|
Shares used to calculate
basic earnings per share attributable to Greif, Inc. common
shareholders: |
|
|
|
|
|
|
|
Class A common stock |
|
25.5 |
|
|
|
25.6 |
|
|
|
25.6 |
|
|
|
26.3 |
|
Class B common stock |
|
21.3 |
|
|
|
22.0 |
|
|
|
21.5 |
|
|
|
22.0 |
|
Shares used to calculate
diluted earnings per share attributable to Greif, Inc. common
shareholders: |
|
|
|
|
|
|
|
Class A common stock |
|
26.0 |
|
|
|
26.3 |
|
|
|
26.0 |
|
|
|
26.6 |
|
Class B common stock |
|
21.3 |
|
|
|
22.0 |
|
|
|
21.5 |
|
|
|
22.0 |
|
GREIF, INC. AND SUBSIDIARY
COMPANIESCONDENSED CONSOLIDATED BALANCE
SHEETSUNAUDITED |
|
(in
millions) |
October 31, 2023 |
|
|
October 31, 2022 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
180.9 |
|
|
$ |
147.1 |
|
Trade accounts receivable |
|
659.4 |
|
|
|
749.1 |
|
Inventories |
|
338.6 |
|
|
|
403.3 |
|
Other current assets |
|
190.2 |
|
|
|
199.9 |
|
|
|
1,369.1 |
|
|
|
1,499.4 |
|
LONG-TERM ASSETS |
|
|
|
|
Goodwill |
|
1,693.0 |
|
|
|
1,464.5 |
|
Intangible assets |
|
792.2 |
|
|
|
576.2 |
|
Operating lease assets |
|
290.3 |
|
|
|
254.7 |
|
Other long-term assets |
|
253.6 |
|
|
|
220.1 |
|
|
|
3,029.1 |
|
|
|
2,515.5 |
|
PROPERTIES, PLANTS AND EQUIPMENT,
NET |
|
1,562.6 |
|
|
|
1,455.0 |
|
|
$ |
5,960.8 |
|
|
$ |
5,469.9 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Accounts payable |
$ |
497.8 |
|
|
$ |
561.3 |
|
Short-term borrowings |
|
5.4 |
|
|
|
5.7 |
|
Current portion of long-term
debt |
|
88.3 |
|
|
|
71.1 |
|
Current portion of operating
lease liabilities |
|
53.8 |
|
|
|
48.9 |
|
Other current liabilities |
|
294.0 |
|
|
|
360.9 |
|
|
|
939.3 |
|
|
|
1,047.9 |
|
LONG-TERM LIABILITIES |
|
|
|
|
Long-term debt |
|
2,121.4 |
|
|
|
1,839.3 |
|
Operating lease liabilities |
|
240.2 |
|
|
|
209.4 |
|
Other long-term liabilities |
|
548.3 |
|
|
|
563.2 |
|
|
|
2,909.9 |
|
|
|
2,611.9 |
|
REDEEMABLE NONCONTROLLING
INTERESTS |
|
125.3 |
|
|
|
15.8 |
|
EQUITY |
|
|
|
|
|
|
Total Greif, Inc. equity |
|
1,947.9 |
|
|
|
1,761.3 |
|
Noncontrolling interests |
|
38.4 |
|
|
|
33.0 |
|
|
|
1,986.3 |
|
|
|
1,794.3 |
|
|
$ |
5,960.8 |
|
|
$ |
5,469.9 |
|
GREIF, INC. AND SUBSIDIARY
COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWSUNAUDITED |
|
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net income |
$ |
73.3 |
|
|
|
102.6 |
|
|
$ |
379.1 |
|
|
$ |
394.0 |
|
Depreciation, depletion and
amortization |
|
61.2 |
|
|
|
51.2 |
|
|
|
230.6 |
|
|
|
216.6 |
|
Asset impairments |
|
16.9 |
|
|
|
7.9 |
|
|
|
20.3 |
|
|
|
71.0 |
|
Deferred income tax expense
(benefit) |
|
(27.8 |
) |
|
|
18.5 |
|
|
|
(28.7 |
) |
|
|
13.4 |
|
Other non-cash adjustments to net
income |
|
15.7 |
|
|
|
14.1 |
|
|
|
(13.6 |
) |
|
|
25.4 |
|
Debt extinguishment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22.6 |
|
Operating working capital
changes |
|
57.7 |
|
|
|
90.1 |
|
|
|
151.5 |
|
|
|
(9.3 |
) |
Increase (decrease) in cash from
changes in other assets and liabilities |
|
3.0 |
|
|
|
2.2 |
|
|
|
(93.2 |
) |
|
|
(76.2 |
) |
Net cash (used in) provided by operating activities |
|
203.5 |
|
|
|
286.6 |
|
|
|
649.5 |
|
|
|
657.5 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Acquisitions of companies, net of
cash acquired |
|
(94.9 |
) |
|
|
— |
|
|
|
(542.4 |
) |
|
|
— |
|
Purchases of properties, plants
and equipment |
|
(77.2 |
) |
|
|
(64.1 |
) |
|
|
(213.6 |
) |
|
|
(176.3 |
) |
Proceeds from the sale of
properties, plants and equipment and businesses, net of impacts
from the purchase of acquisitions |
|
0.6 |
|
|
|
3.3 |
|
|
|
113.9 |
|
|
|
159.5 |
|
Payments for deferred purchase
price of acquisitions |
|
(0.4 |
) |
|
|
— |
|
|
|
(22.1 |
) |
|
|
(4.7 |
) |
Other |
|
(1.6 |
) |
|
|
(2.1 |
) |
|
|
(6.0 |
) |
|
|
(6.7 |
) |
Net cash (used in) provided by investing activities |
|
(173.5 |
) |
|
|
(62.9 |
) |
|
|
(670.2 |
) |
|
|
(28.2 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Payments on long-term debt,
net |
|
47.6 |
|
|
|
(139.7 |
) |
|
|
290.7 |
|
|
|
(289.1 |
) |
Dividends paid to Greif, Inc.
shareholders |
|
(29.8 |
) |
|
|
(29.3 |
) |
|
|
(116.5 |
) |
|
|
(111.3 |
) |
Payments for debt extinguishment
and issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20.8 |
) |
Payments for share
repurchases |
|
— |
|
|
|
(11.1 |
) |
|
|
(63.9 |
) |
|
|
(71.1 |
) |
Forward contract for accelerated
share repurchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15.0 |
) |
Tax withholding payments for
stock-based awards |
|
— |
|
|
|
— |
|
|
|
(13.7 |
) |
|
|
— |
|
Other |
|
(10.1 |
) |
|
|
(7.1 |
) |
|
|
(26.9 |
) |
|
|
(23.7 |
) |
Net cash (used in) provided by for financing activities |
|
7.7 |
|
|
|
(187.2 |
) |
|
|
69.7 |
|
|
|
(531.0 |
) |
Effects of exchange rates on
cash |
|
(14.5 |
) |
|
|
(16.9 |
) |
|
|
(15.2 |
) |
|
|
(75.8 |
) |
Net increase (decrease) in cash
and cash equivalents |
|
23.2 |
|
|
|
19.6 |
|
|
|
33.8 |
|
|
|
22.5 |
|
Cash and cash equivalents,
beginning of period |
|
157.7 |
|
|
|
127.5 |
|
|
|
147.1 |
|
|
|
124.6 |
|
Cash and cash equivalents, end of
period |
$ |
180.9 |
|
|
$ |
147.1 |
|
|
$ |
180.9 |
|
|
$ |
147.1 |
|
GREIF, INC. AND SUBSIDIARY
COMPANIESFINANCIAL HIGHLIGHTS BY
SEGMENTUNAUDITED |
|
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in
millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales: |
|
|
|
|
|
|
|
Global Industrial Packaging |
$ |
721.0 |
|
|
$ |
824.9 |
|
|
$ |
2,936.8 |
|
|
$ |
3,652.4 |
|
Paper Packaging & Services |
|
581.6 |
|
|
|
665.6 |
|
|
|
2,260.5 |
|
|
|
2,675.1 |
|
Land Management |
|
5.8 |
|
|
|
5.3 |
|
|
|
21.3 |
|
|
|
22.0 |
|
Total net sales |
$ |
1,308.4 |
|
|
$ |
1,495.8 |
|
|
$ |
5,218.6 |
|
|
$ |
6,349.5 |
|
Gross
profit: |
|
|
|
|
|
|
|
Global Industrial Packaging |
$ |
154.4 |
|
|
$ |
152.5 |
|
|
$ |
634.4 |
|
|
$ |
692.6 |
|
Paper Packaging & Services |
|
118.8 |
|
|
|
155.6 |
|
|
|
502.5 |
|
|
|
584.5 |
|
Land Management |
|
2.5 |
|
|
|
2.0 |
|
|
|
9.2 |
|
|
|
8.3 |
|
Total gross profit |
$ |
275.7 |
|
|
$ |
310.1 |
|
|
$ |
1,146.1 |
|
|
$ |
1,285.4 |
|
Operating
profit: |
|
|
|
|
|
|
|
Global Industrial Packaging |
$ |
75.1 |
|
|
$ |
67.5 |
|
|
$ |
334.3 |
|
|
$ |
313.7 |
|
Paper Packaging & Services |
|
35.3 |
|
|
|
83.4 |
|
|
|
264.1 |
|
|
|
298.5 |
|
Land Management |
|
2.0 |
|
|
|
2.5 |
|
|
|
7.1 |
|
|
|
9.0 |
|
Total operating profit |
$ |
112.4 |
|
|
$ |
153.4 |
|
|
$ |
605.5 |
|
|
$ |
621.2 |
|
EBITDA(10): |
|
|
|
|
|
|
|
Global Industrial Packaging |
$ |
96.2 |
|
|
$ |
82.4 |
|
|
$ |
415.7 |
|
|
$ |
383.5 |
|
Paper Packaging & Services |
|
70.4 |
|
|
|
116.9 |
|
|
|
398.8 |
|
|
|
439.0 |
|
Land Management |
|
2.6 |
|
|
|
3.1 |
|
|
|
9.3 |
|
|
|
11.8 |
|
Total EBITDA |
$ |
169.2 |
|
|
$ |
202.4 |
|
|
$ |
823.8 |
|
|
$ |
834.3 |
|
Adjusted
EBITDA(11): |
|
|
|
|
|
|
|
Global Industrial Packaging |
$ |
104.2 |
|
|
$ |
96.0 |
|
|
$ |
423.7 |
|
|
$ |
458.2 |
|
Paper Packaging & Services |
|
92.5 |
|
|
|
120.8 |
|
|
|
386.2 |
|
|
|
450.5 |
|
Land Management |
|
2.5 |
|
|
|
1.9 |
|
|
|
8.9 |
|
|
|
8.8 |
|
Total Adjusted EBITDA |
$ |
199.2 |
|
|
$ |
218.7 |
|
|
$ |
818.8 |
|
|
$ |
917.5 |
|
(10) |
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. |
(11) |
Adjusted
EBITDA is defined as net income, plus interest expense, net, plus
debt extinguishment charges, 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, plus gain (loss) on disposal of
properties, plants, equipment and businesses, net. |
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP TO
NON-GAAP RECONCILIATIONCONSOLIDATED ADJUSTED
EBITDAUNAUDITED |
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
73.3 |
|
|
$ |
102.6 |
|
|
$ |
379.1 |
|
|
$ |
394.0 |
|
Plus: Interest expense, net |
|
24.8 |
|
|
|
16.9 |
|
|
|
96.3 |
|
|
|
61.2 |
|
Plus: Debt extinguishment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25.4 |
|
Plus: Income tax expense |
|
9.9 |
|
|
|
31.7 |
|
|
|
117.8 |
|
|
|
137.1 |
|
Plus: Depreciation, depletion and amortization expense |
|
61.2 |
|
|
|
51.2 |
|
|
|
230.6 |
|
|
|
216.6 |
|
EBITDA |
$ |
169.2 |
|
|
$ |
202.4 |
|
|
$ |
823.8 |
|
|
$ |
834.3 |
|
Net income |
$ |
73.3 |
|
|
$ |
102.6 |
|
|
$ |
379.1 |
|
|
$ |
394.0 |
|
Plus: Interest expense, net |
|
24.8 |
|
|
|
16.9 |
|
|
|
96.3 |
|
|
|
61.2 |
|
Plus: Debt extinguishment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25.4 |
|
Plus: Income tax expense |
|
9.9 |
|
|
|
31.7 |
|
|
|
117.8 |
|
|
|
137.1 |
|
Plus: Other (income) expense, net |
|
1.4 |
|
|
|
4.0 |
|
|
|
11.0 |
|
|
|
8.9 |
|
Plus: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Plus: Equity earnings of unconsolidated affiliates, net of tax |
|
(0.5 |
) |
|
|
(1.8 |
) |
|
|
(2.2 |
) |
|
|
(5.4 |
) |
Operating profit |
|
112.4 |
|
|
|
153.4 |
|
|
|
605.5 |
|
|
|
621.2 |
|
Less: Other (income) expense, net |
|
1.4 |
|
|
|
4.0 |
|
|
|
11.0 |
|
|
|
8.9 |
|
Less: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
(0.5 |
) |
|
|
(1.8 |
) |
|
|
(2.2 |
) |
|
|
(5.4 |
) |
Plus: Depreciation, depletion and amortization expense |
|
61.2 |
|
|
|
51.2 |
|
|
|
230.6 |
|
|
|
216.6 |
|
EBITDA |
$ |
169.2 |
|
|
$ |
202.4 |
|
|
$ |
823.8 |
|
|
$ |
834.3 |
|
Plus: Restructuring charges |
$ |
5.2 |
|
|
$ |
2.7 |
|
|
$ |
18.7 |
|
|
$ |
13.0 |
|
Plus: Acquisition and integration related costs |
|
3.5 |
|
|
|
2.9 |
|
|
|
19.0 |
|
|
|
8.7 |
|
Plus: Non-cash asset impairment charges |
|
16.9 |
|
|
|
7.9 |
|
|
|
20.3 |
|
|
|
71.0 |
|
Plus: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Plus: (Gain) loss on disposal of properties, plants, equipment, and
businesses, net |
|
0.9 |
|
|
|
2.8 |
|
|
|
(66.5 |
) |
|
|
(9.5 |
) |
Adjusted EBITDA |
$ |
199.2 |
|
|
$ |
218.7 |
|
|
$ |
818.8 |
|
|
$ |
917.5 |
|
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONSEGMENT ADJUSTED
EBITDA(12)UNAUDITED |
|
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Global Industrial
Packaging |
|
|
|
|
|
|
|
Operating profit |
$ |
75.1 |
|
|
$ |
67.5 |
|
|
$ |
334.3 |
|
|
$ |
313.7 |
|
Less: Other (income) expense, net |
|
1.7 |
|
|
|
4.3 |
|
|
|
12.6 |
|
|
|
9.5 |
|
Less: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
(0.5 |
) |
|
|
(1.8 |
) |
|
|
(2.2 |
) |
|
|
(5.4 |
) |
Plus: Depreciation and amortization expense |
|
25.8 |
|
|
|
17.4 |
|
|
|
95.3 |
|
|
|
73.9 |
|
EBITDA |
$ |
96.2 |
|
|
$ |
82.4 |
|
|
$ |
415.7 |
|
|
$ |
383.5 |
|
Plus: Restructuring charges |
|
— |
|
|
|
2.8 |
|
|
|
4.2 |
|
|
|
9.1 |
|
Plus: Acquisition and integration related costs |
|
3.4 |
|
|
|
0.1 |
|
|
|
12.2 |
|
|
|
0.4 |
|
Plus: Non-cash asset impairment charges |
|
0.4 |
|
|
|
7.0 |
|
|
|
1.9 |
|
|
|
69.4 |
|
Plus: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Plus: (Gain) loss on disposal of properties, plants, equipment, and
businesses, net |
|
0.7 |
|
|
|
3.7 |
|
|
|
(13.8 |
) |
|
|
(4.2 |
) |
Adjusted EBITDA |
$ |
104.2 |
|
|
$ |
96.0 |
|
|
$ |
423.7 |
|
|
$ |
458.2 |
|
Paper
Packaging & Services |
|
|
|
|
|
|
|
Operating profit |
$ |
35.3 |
|
|
$ |
83.4 |
|
|
$ |
264.1 |
|
|
$ |
298.5 |
|
Less: Other (income) expense, net |
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(1.6 |
) |
|
|
(0.6 |
) |
Plus: Depreciation and amortization expense |
|
34.8 |
|
|
|
33.2 |
|
|
|
133.1 |
|
|
|
139.9 |
|
EBITDA |
$ |
70.4 |
|
|
$ |
116.9 |
|
|
$ |
398.8 |
|
|
$ |
439.0 |
|
Plus: Restructuring charges (income) |
|
5.2 |
|
|
|
(0.1 |
) |
|
|
14.5 |
|
|
|
3.9 |
|
Plus: Acquisition and integration related costs |
|
0.1 |
|
|
|
2.8 |
|
|
|
6.8 |
|
|
|
8.3 |
|
Plus: Non-cash asset impairment charges |
|
16.5 |
|
|
|
0.9 |
|
|
|
18.4 |
|
|
|
1.6 |
|
Plus: (Gain) loss on disposal of properties, plants, equipment, and
businesses, net |
|
0.3 |
|
|
|
0.3 |
|
|
|
(52.3 |
) |
|
|
(2.3 |
) |
Adjusted EBITDA |
$ |
92.5 |
|
|
$ |
120.8 |
|
|
$ |
386.2 |
|
|
$ |
450.5 |
|
Land
Management |
|
|
|
|
|
|
|
Operating profit |
$ |
2.0 |
|
|
$ |
2.5 |
|
|
$ |
7.1 |
|
|
$ |
9.0 |
|
Plus: Depreciation, depletion and amortization expense |
|
0.6 |
|
|
|
0.6 |
|
|
|
2.2 |
|
|
|
2.8 |
|
EBITDA |
$ |
2.6 |
|
|
$ |
3.1 |
|
|
$ |
9.3 |
|
|
$ |
11.8 |
|
Plus: (Gain) loss on disposal of properties, plants, equipment, and
businesses, net |
|
(0.1 |
) |
|
|
(1.2 |
) |
|
|
(0.4 |
) |
|
|
(3.0 |
) |
Adjusted EBITDA |
$ |
2.5 |
|
|
$ |
1.9 |
|
|
$ |
8.9 |
|
|
$ |
8.8 |
|
Consolidated EBITDA |
$ |
169.2 |
|
|
$ |
202.4 |
|
|
$ |
823.8 |
|
|
$ |
834.3 |
|
Consolidated Adjusted EBITDA |
$ |
199.2 |
|
|
$ |
218.7 |
|
|
$ |
818.8 |
|
|
$ |
917.5 |
|
(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, plus (gain) loss
on disposal of properties, plants, equipment and businesses, net.
However, because the Company does not calculate net income by
segment, this table calculates adjusted EBITDA by segment with
reference to operating profit by segment, which, as demonstrated in
the table of consolidated adjusted EBITDA, is another method to
achieve the same result. |
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONADJUSTED FREE CASH
FLOW(13)UNAUDITED |
|
|
Three Months EndedOctober
31, |
|
Twelve Months EndedOctober
31, |
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by
operating activities |
$ |
203.5 |
|
|
$ |
286.6 |
|
|
$ |
649.5 |
|
|
$ |
657.5 |
|
Cash paid for purchases of properties, plants and equipment |
|
(77.2 |
) |
|
|
(64.1 |
) |
|
|
(213.6 |
) |
|
|
(176.3 |
) |
Free Cash
Flow |
$ |
126.3 |
|
|
$ |
222.5 |
|
|
$ |
435.9 |
|
|
$ |
481.2 |
|
Cash paid for acquisition and integration related costs |
|
3.5 |
|
|
|
2.9 |
|
|
|
19.0 |
|
|
|
8.7 |
|
Cash paid for integration related ERP systems and
equipment(14) |
|
1.0 |
|
|
|
1.7 |
|
|
|
4.6 |
|
|
|
6.2 |
|
Cash paid for debt issuance costs(15) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.8 |
|
Cash proceeds redeployment related to replacement of non-operating
corporate asset(16) |
|
— |
|
|
|
7.4 |
|
|
|
— |
|
|
|
7.4 |
|
Cash paid for taxes related to Tama, Iowa mill divestment |
|
5.4 |
|
|
|
— |
|
|
|
21.7 |
|
|
|
— |
|
Adjusted Free Cash
Flow |
$ |
136.2 |
|
|
$ |
234.5 |
|
|
$ |
481.2 |
|
|
$ |
506.3 |
|
(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, net, plus cash paid for integration
related ERP systems and equipment, plus cash paid for debt issuance
costs, plus cash proceeds redeployment related to replacement of
non-operating corporate asset, plus cash paid for taxes related to
Tama, Iowa mill divestment. |
(14) |
Cash paid
for integration related ERP systems and equipment is defined as
cash paid for ERP systems and equipment required to bring the
acquired facilities to Greif’s standards. |
(15) |
Cash paid
for debt issuance costs is defined as cash payments for debt
issuance related expenses included within net cash used in
operating activities. |
(16) |
Cash
proceeds redeployment related to replacement of non-operating
corporate asset is defined as cash payments to reinvest in a
similar, newer non-operating corporate asset using proceeds from
the sale of the previous, older non-operating corporate asset of
approximately the same amount. This payment is included within cash
paid for purchases of properties, plants and equipment under net
cash used in investing activities. |
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONNET INCOME, CLASS A
EARNINGS PER SHARE, AND TAX RATE BEFORE
ADJUSTMENTSUNAUDITED |
|
(in
millions, except for per share amounts) |
Income before Income Tax Expense and EquityEarnings of
Unconsolidated Affiliates, net |
|
IncomeTax(Benefit) Expense |
|
EquityEarnings |
|
Noncontrolling Interest |
|
Net Income Attributableto Greif, Inc. |
|
DilutedClass A EarningsPerShare |
TaxRate |
Three Months Ended October 31, 2023 |
$ |
82.7 |
|
|
$ |
9.9 |
|
|
$ |
(0.5 |
) |
|
$ |
5.5 |
|
|
$ |
67.8 |
|
|
$ |
1.16 |
|
|
12.0 |
% |
Restructuring charges |
|
5.2 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
|
|
0.08 |
|
|
Acquisition and integration related costs |
|
3.5 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
2.7 |
|
|
|
0.04 |
|
|
Non-cash asset impairment charges |
|
16.9 |
|
|
|
4.1 |
|
|
|
— |
|
|
|
— |
|
|
|
12.8 |
|
|
|
0.22 |
|
|
Non-cash pension settlement charges |
|
3.5 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
0.06 |
|
|
(Gain) loss on disposal of properties, plants, equipment and
businesses, net |
|
0.9 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
Excluding Adjustments |
$ |
112.7 |
|
|
$ |
16.8 |
|
|
$ |
(0.5 |
) |
|
$ |
5.5 |
|
|
$ |
90.9 |
|
|
$ |
1.56 |
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31, 2022 |
$ |
132.5 |
|
|
$ |
31.7 |
|
|
$ |
(1.8 |
) |
|
$ |
3.1 |
|
|
$ |
99.5 |
|
|
$ |
1.67 |
|
|
23.9 |
% |
Restructuring charges |
|
2.7 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
0.04 |
|
|
Acquisition and integration related costs |
|
2.9 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
|
|
0.04 |
|
|
Non-cash asset impairment charges |
|
7.9 |
|
|
|
5.6 |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
0.03 |
|
|
(Gain) loss on disposal of properties, plants, equipment and
businesses, net |
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.8 |
|
|
|
0.05 |
|
|
Excluding Adjustments |
$ |
148.8 |
|
|
$ |
38.5 |
|
|
$ |
(1.8 |
) |
|
$ |
3.1 |
|
|
$ |
109.0 |
|
|
$ |
1.83 |
|
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
October 31, 2023 |
$ |
494.7 |
|
|
$ |
117.8 |
|
|
$ |
(2.2 |
) |
|
$ |
19.9 |
|
|
$ |
359.2 |
|
|
$ |
6.15 |
|
|
23.8 |
% |
Restructuring charges |
|
18.7 |
|
|
|
4.4 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
14.2 |
|
|
|
0.25 |
|
|
Acquisition and integration related costs |
|
19.0 |
|
|
|
4.6 |
|
|
|
— |
|
|
|
— |
|
|
|
14.4 |
|
|
|
0.24 |
|
|
Non-cash asset impairment charges |
|
20.3 |
|
|
|
4.9 |
|
|
|
— |
|
|
|
— |
|
|
|
15.4 |
|
|
|
0.26 |
|
|
Non-cash pension settlement charges |
|
3.5 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
0.06 |
|
|
(Gain) loss on disposal of properties, plants, equipment and
businesses, net |
|
(66.5 |
) |
|
|
(18.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(47.8 |
) |
|
|
(0.82 |
) |
|
Excluding Adjustments |
$ |
489.7 |
|
|
$ |
113.2 |
|
|
$ |
(2.2 |
) |
|
$ |
20.0 |
|
|
$ |
358.7 |
|
|
$ |
6.14 |
|
|
23.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
October 31, 2022 |
$ |
525.7 |
|
|
$ |
137.1 |
|
|
$ |
(5.4 |
) |
|
$ |
17.3 |
|
|
$ |
376.7 |
|
|
$ |
6.30 |
|
|
26.1 |
% |
Restructuring charges |
|
13.0 |
|
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
10.1 |
|
|
|
0.17 |
|
|
Debt extinguishment charges |
|
25.4 |
|
|
|
6.2 |
|
|
|
— |
|
|
|
— |
|
|
|
19.2 |
|
|
|
0.32 |
|
|
Acquisition and integration related costs |
|
8.7 |
|
|
|
2.2 |
|
|
|
— |
|
|
|
— |
|
|
|
6.5 |
|
|
|
0.11 |
|
|
Non-cash asset impairment charges |
|
71.0 |
|
|
|
5.6 |
|
|
|
— |
|
|
|
— |
|
|
|
65.4 |
|
|
|
1.08 |
|
|
(Gain) loss on disposal of properties, plants, equipment and
businesses, net |
|
(9.5 |
) |
|
|
(2.6 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(6.7 |
) |
|
|
(0.11 |
) |
|
Excluding Adjustments |
$ |
634.3 |
|
|
$ |
151.4 |
|
|
$ |
(5.4 |
) |
|
$ |
17.1 |
|
|
$ |
471.2 |
|
|
$ |
7.87 |
|
|
23.9 |
% |
The impact of income tax expense and
noncontrolling interest on each adjustment is calculated based on
tax rates and ownership percentages specific to each applicable
entity.
GREIF INC. AND SUBSIDIARY COMPANIESGAAP TO
NON-GAAP RECONCILIATIONNET
DEBTUNAUDITED |
|
(in
millions) |
October 31, 2023 |
|
July 31, 2023 |
|
October 31, 2022 |
Total Debt |
$ |
2,215.1 |
|
|
$ |
2,171.5 |
|
|
$ |
1,916.1 |
|
Cash and cash equivalents |
|
(180.9 |
) |
|
|
(157.7 |
) |
|
|
(147.1 |
) |
Net Debt |
$ |
2,034.2 |
|
|
$ |
2,013.8 |
|
|
$ |
1,769.0 |
|
GREIF, INC. AND SUBSIDIARY
COMPANIES GAAP TO NON-GAAP
RECONCILIATION LEVERAGE
RATIOUNAUDITED
Trailing Twelve Month Credit Agreement EBITDA(in
millions) |
Trailing TwelveMonths Ended10/31/2023 |
Trailing TwelveMonths Ended7/31/2023 |
Trailing TwelveMonths Ended10/31/2022 |
Net income |
$ |
379.1 |
|
|
$ |
408.4 |
|
|
$ |
394.0 |
|
Plus: Interest expense, net |
|
96.3 |
|
|
|
88.4 |
|
|
|
61.2 |
|
Plus: Debt extinguishment charges |
|
— |
|
|
|
— |
|
|
|
25.4 |
|
Plus: Income tax expense |
|
117.8 |
|
|
|
139.6 |
|
|
|
137.1 |
|
Plus: Depreciation, depletion and amortization expense |
|
230.6 |
|
|
|
220.6 |
|
|
|
216.6 |
|
EBITDA |
$ |
823.8 |
|
|
$ |
857.0 |
|
|
$ |
834.3 |
|
Plus: Restructuring charges |
|
18.7 |
|
|
|
16.2 |
|
|
|
13.0 |
|
Plus: Acquisition and integration related costs |
|
19.0 |
|
|
|
18.4 |
|
|
|
8.7 |
|
Plus: Non-cash asset impairment charges |
|
20.3 |
|
|
|
11.3 |
|
|
|
71.0 |
|
Plus: Non-cash pension settlement charges |
|
3.5 |
|
|
|
— |
|
|
|
— |
|
Plus: (Gain) loss on disposal of properties, plants, equipment, and
businesses, net |
|
(66.5 |
) |
|
|
(64.6 |
) |
|
|
(9.5 |
) |
Adjusted EBITDA |
$ |
818.8 |
|
|
$ |
838.3 |
|
|
$ |
917.5 |
|
Credit Agreement adjustments to EBITDA(17) |
|
23.7 |
|
|
|
13.5 |
|
|
|
(17.7 |
) |
Credit Agreement EBITDA |
$ |
842.5 |
|
|
$ |
851.8 |
|
|
$ |
899.8 |
|
|
|
|
|
Adjusted Net Debt(in millions) |
For the Period Ended 10/31/2023 |
Trailing Twelve Months Ended 7/31/2023 |
For the Period Ended 10/31/2022 |
Total debt |
$ |
2,215.1 |
|
|
$ |
2,171.5 |
|
|
$ |
1,916.1 |
|
Cash and cash equivalents |
|
(180.9 |
) |
|
|
(157.7 |
) |
|
|
(147.1 |
) |
Net debt |
$ |
2,034.2 |
|
|
$ |
2,013.8 |
|
|
$ |
1,769.0 |
|
Credit Agreement adjustments to debt(18) |
|
(177.4 |
) |
|
|
(166.3 |
) |
|
|
(214.2 |
) |
Adjusted net debt |
$ |
1,856.8 |
|
|
$ |
1,847.5 |
|
|
$ |
1,554.8 |
|
|
|
|
|
Leverage
Ratio |
|
2.2x |
|
|
|
2.17x |
|
|
|
1.73x |
|
(17) |
Adjustments to EBITDA are specified by the 2022 Credit Agreement
and include certain timberland gains, equity earnings of
unconsolidated affiliates, net of tax, certain acquisition savings,
deferred financing costs, capitalized interest, income and expense
in connection with asset dispositions, and other items. |
(18) |
Adjustments to net debt are specified by the 2022 Credit Agreement
and include the European accounts receivable program, letters of
credit, and balances for swap contracts. |
GREIF, INC. AND SUBSIDIARY
COMPANIESPROJECTED 2024 GUIDANCE
RECONCILIATION ADJUSTED FREE CASH
FLOWUNAUDITED |
|
|
Fiscal 2024 Low-End Guidance Estimate |
(in
millions) |
|
Net cash provided by operating activities |
$ |
331.8 |
|
Cash paid for purchases of properties, plants and equipment |
|
(154.0 |
) |
Free cash
flow |
$ |
177.8 |
|
Cash paid for acquisition and integration related costs |
|
17.0 |
|
Cash paid for integration related ERP systems and equipment |
|
4.0 |
|
Cash paid for ongoing strategic initiatives under Build to
Last |
|
1.2 |
|
Adjusted free cash
flow |
$ |
200.0 |
|
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