Greif, Inc.: Greif Reports First Quarter 2013 Results
2013-02-27 22:16:25 -
DELAWARE, Ohio (Feb. 27, 2013) - Greif, Inc. (NYSE: GEF, GEF.B), a global leader
in industrial packaging products and services, today announced results for its
first quarter, which ended Jan. 31, 2013. For the first quarter of 2013 compared
with the first quarter of 2012:
* Net sales increased 2 percent led by higher volumes of rigid industrial
packaging and paper packaging products;
* Operating profit increased 14 percent due to higher volumes, improved
margins in Paper Packaging and lower restructuring and acquisition-related
costs;
* Net income attributable to Greif, Inc. increased 15 percent to $0.43 per
diluted Class A share.
Quarter ended Jan.
(Dollars in millions, except per share amounts) 31,
-------------------
Selected Financial Highlights 2013 2012[1]
---------- --------
Net sales $1,008.6 $992.8
Operating profit 64.6 56.5
EBITDA[2] 101.0 95.4
Cash (used in) provided by operating activities (68.8) 14.0
Net income attributable to Greif, Inc. 24.9 21.7
Diluted Class A earnings per share attributable to Greif,
Inc. $0.43 $0.38
Special items included in the amounts above:
Restructuring charges ($1.3) ($8.9)
Acquisition-related costs (0.5) (2.2)
Debt extinguishment charges (1.3) -
---------- --------
Total Special items (3.1) (11.1)
---------- --------
Total Special items, net of tax (2.0) (7.5)
---------- --------
Impact of total Special items, net of tax, on diluted
Class A
earnings per share attributable to Greif, Inc. $(0.03) $(0.13)
---------- --------
Jan. 31, 2013 Oct. 31, 2012(1)
----------------- -------------------
Working capital[3] $330.6 $202.0
Net working capital(3) 239.0 110.3
Long-term debt 1,305.2 1,175.3
Net debt[4] 1,326.5 1,185.7
David B. Fischer, president and chief executive officer, said, "Operating
results for the first quarter of 2013 were slightly ahead of our plan despite
extended holiday shutdowns by a number of our major chemical customers, which
were longer than normal. Volume growth in the Rigid Industrial Packaging &
Services and Paper Packaging segments combined with relatively stable raw
material costs and increased efficiencies due to Greif Business System
initiatives contributed to our performance. Markets are gradually improving
across our business notwithstanding ongoing concerns regarding economic
conditions in Western Europe. We continue to manage our cost structure
consistent with demand and leverage our global footprint to realize increased
profitability."
Consolidated Results
Net sales were $1,008.6 million for the first quarter of 2013 compared with
$992.8 million for the first quarter of 2012. The 2 percent increase was
primarily due to a 3 percent increase in volumes, partially offset by a
1 percent decline in selling prices. The impact of foreign currency translation
was immaterial. Higher containerboard prices in paper packaging were more than
offset by selling price decreases resulting from the pass-through of lower raw
material costs in rigid industrial packaging and flexible products.
Gross profit increased to $187.3 million for the first quarter of 2013 compared
with $177.4 million for the first quarter of 2012, principally due to lower raw
material costs and improved operating leverage and efficiencies in the first
quarter of 2013. Gross profit, as a percent of net sales, was 18.6 percent for
the first quarter of 2013 versus 17.9 percent for the first quarter of 2012.
SG&A expenses were $122.6 million for the first quarter of 2013 compared with
$113.1 million for the first quarter of 2012. First quarter 2013 employee-
related expenses, including performance-based incentive accruals, and
information technology expenditures were higher than the same period in 2012,
partially offset by lower acquisition-related costs. SG&A expenses, as a
percentage of net sales, were 12.2 percent for the first quarter of 2013
compared with 11.4 percent for the first quarter of 2012. Acquisition-related
costs of $0.5 million and $2.2 million were included in SG&A expenses for the
first quarters of 2013 and 2012, respectively.
First quarter 2013 restructuring charges of $1.3 million were primarily related
to the Rigid Industrial Packaging & Services segment. First quarter 2012
restructuring charges of $8.9 million were primarily related to consolidation of
operations in the Flexible Products & Services segment and rationalization of
operations in the Rigid Industrial Packaging & Services segment.
Operating profit was $64.6 million for the first quarter of 2013 versus
$56.5 million for the first quarter of 2012. The $8.1 million increase consisted
of Paper Packaging ($7.5 million increase), Land Management ($1.2 million
increase), Rigid Industrial Packaging & Services ($1.1 million increase) and
Flexible Products & Services ($1.7 million decrease).
EBITDA was $101.0 million for the first quarter of 2013 compared with
$95.4 million for the first quarter of 2012. The $5.6 million increase was
primarily due to improved results in the Paper Packaging, Rigid Industrial
Packaging & Services and Land Management segments, partially offset by lower
results in the Flexible Products & Services segment.
Cash used in operating activities was $68.8 million for the first quarter of
2013 compared with cash provided by operating activities of $14.0 million for
the same period in 2012. Free cash flow was negative $97.3 million and negative
$35.5 million for the first quarters of 2013 and 2012, respectively.
Cash flow in the first quarter of 2013 was negatively impacted by the timing of
the sale of accounts receivable under the European Receivable Purchase Agreement
and the termination of consignment inventory programs in North America and Asia.
Interest expense, net, was $21.6 million for the first quarter of 2013 compared
with $22.9 million for the first quarter of 2012. The decrease was due to lower
debt outstanding compared with the first quarter of 2012 and more favorable
terms from the company's December 2012 amended senior secured credit facilities.
There was a non-cash debt extinguishment expense of $1.3 million in the first
quarter of 2013 related to completion of the company's December 2012 amended
credit agreement.
Income tax expense was $12.5 million and $11.0 million for the first quarters of
2013 and 2012, respectively. The increase is due to higher income before income
tax expense and equity earnings of unconsolidated affiliates, net of tax
compared with the first quarter of 2012. The company's effective tax rate for
the first quarter of 2013 was 32.3 percent compared with 32.5 percent in the
first quarter of 2012. Cash tax payments for the first quarter of 2013 were
$9.0 million; in addition, the company received a $5.0 million refund in the
United States related to a credit from fiscal 2009.
Net income attributable to Greif, Inc. was $24.9 million, or $0.43 per diluted
Class A share and $0.63 per diluted Class B share, for the first quarter of
2013 versus $21.7 million, or $0.38 per diluted Class A share and $0.55 per
diluted Class B share, for the first quarter of 2012.
Segment Results
Rigid Industrial Packaging & Services
Net sales of $704.4 million for the first quarter of 2013 were similar to the
same period in 2012. A 4 percent increase in volumes was offset by the
combination of a 3 percent decrease in selling prices and a 1 percent negative
impact of foreign currency translation. Economic conditions and market pressure
continued to impact volumes in Europe, partially offsetting volume increases in
other regions. Selling prices decreased due to lower raw material costs.
Gross profit was $120.3 million for the first quarter of 2013 compared with
$119.3 million for the first quarter of 2012. Gross profit margin was 17.1
percent and 17.0 percent for the first quarters of 2013 and 2012, respectively.
Operating profit increased to $32.1 million for the first quarter of 2013 from
$31.0 million for the first quarter of 2012. The $1.1 million increase was
primarily due to lower restructuring and acquisition-related costs.
There were $1.2 million of restructuring charges for the first quarter of 2013,
primarily related to rationalization of operations, compared with $7.3 million
for the same period last year. There were $0.5 million and $1.7 million of
acquisition-related costs for the first quarters of 2013 and 2012, respectively.
EBITDA was $55.2 million for the first quarter of 2013 compared with
$56.5 million for the same period in 2012. EBITDA for both periods was affected
by the same factors that impacted the segment's operating profit. Depreciation,
depletion and amortization expense was $26.9 million for the first quarter of
2013 compared with $25.9 million for the same period in 2012.
Flexible Products & Services
Net sales were $111.4 million for the first quarter of 2013 compared with
$114.8 million for the first quarter of 2012. The 3 percent decrease was
primarily due to lower selling prices (2 percent) and the negative impact of
foreign currency translation (1 percent). Volumes were lower for polywoven
products due to the impact of market conditions, especially in Asia, Australia
and the Americas, partially offset by slightly improved volumes in Europe.
Volumes were stronger for multiwall bags in the United States due to late season
orders. Selling prices for polywoven products increased slightly due to
favorable product mix while selling prices for multiwall bags decreased due to
changes in customer mix and market pressure in the United States.
Gross profit was $20.9 million and $23.7 million for the first quarters of 2013
and 2012, respectively. Gross profit margin decreased to 18.7 percent for the
first quarter of 2013 from 20.6 percent for the first quarter of 2012. The
decrease in gross profit was primarily due to lower polywoven revenue, change in
customer mix, pricing pressure in multiwall bags and higher production costs due
to ongoing consolidation of operations in the polywoven businesses and costs
related to the fabric hub in Saudi Arabia.
Operating profit was $0.6 million and $2.3 million for the first quarters of
2013 and 2012, respectively. The $1.7 million decrease compared with the same
period last year was primarily due to lower polywoven product volumes, higher
production costs related to the ongoing consolidation of operations and start-up
costs related to new facilities, including the fabric hub in Saudi Arabia,
partially offset by lower restructuring charges and acquisition-related costs.
There were $0.1 million of restructuring charges for the first quarter of 2013
compared with $1.6 million for the same period last year. There were no
acquisition-related costs for the first quarter of 2013 compared with
$0.5 million in the first quarter of 2012.
EBITDA was $3.8 million and $6.5 million for the first quarters of 2013 and
2012, respectively. EBITDA for both periods was affected by the same factors
that impacted the segment's operating profit. Depreciation, depletion and
amortization expense was $3.5 million and $3.9 million for the first quarters of
2013 and 2012, respectively.
Paper Packaging
Net sales were $184.2 million for the first quarter of 2013 compared with
$168.1 million for the first quarter of 2012. The 10 percent increase was due to
higher selling prices and change in product mix (7 percent) and a 3 percent
increase in volumes. Full implementation of a containerboard price increase was
achieved by the end of the first quarter of 2013.
Gross profit was $41.4 million and $31.2 million for the first quarters of 2013
and 2012, respectively. Gross profit margin increased to 22.5 percent for the
first quarter of 2013 from 18.6 percent for the first quarter of 2012. This
increase was primarily due to higher selling prices coupled with lower raw
material costs.
Operating profit increased 37 percent to $27.7 million for the first quarter of
2013 from $20.2 million for the first quarter of 2012, primarily due to higher
selling prices, higher volumes and lower raw material costs.
EBITDA increased to $36.7 million for the first quarter of 2013 compared with
$28.4 million for the first quarter of 2012 for the same reasons that
contributed to the increase in the segment's operating profit. Depreciation,
depletion and amortization expense was $8.0 million and $7.9 million for the
first quarters of 2013 and 2012, respectively.
Land Management
Net sales were $8.6 million for the first quarter of 2013 compared with
$6.5 million for the first quarter of 2012, primarily due to increased timber
sales resulting from customer demand and weather conditions favoring the ability
to access the company's timberlands.
Operating profit increased to $4.2 million for the first quarter of 2013 from
$3.0 million for the first quarter of 2012, primarily due to an increase in
timber sales. Special use property disposals were $0.2 million versus
$0.4 million for the first quarter of 2013 and 2012, respectively.
EBITDA was $5.3 million and $4.0 million for the first quarter of 2013 and
2012, respectively. This increase was due to the same factors that impacted the
segment's operating profit. Depreciation, depletion and amortization expense was
$1.1 million and $1.0 million for the first quarter of 2013 and 2012,
respectively.
Other Financial Information
Long-term debt was $1,305.2 million at Jan. 31, 2013 compared with
$1,414.3 million on the same date in 2012 and $1,175.3 million at Oct.
31, 2012. During the first quarter of 2013, long-term debt increased
$129.9 million from the fiscal year-end 2012 amount, primarily due to the
company's working capital requirements.
Capital expenditures were $28.5 million and there were no timberland purchases
for the first quarter of fiscal 2013 compared with capital expenditures of
$46.9 million, excluding timberland purchases of $2.6 million, for the first
quarter of fiscal 2012. Depreciation, depletion and amortization expense was
$39.5 million and $38.7 million for the first quarters of fiscal 2013 and 2012,
respectively.
On Feb. 25, 2013, the Board of Directors declared quarterly cash dividends of
$0.42 per share of Class A Common Stock and $0.63 per share of Class B Common
Stock. These dividends are payable on April 1, 2013, to stockholders of record
at close of business on March 18, 2013.
Company Outlook
For fiscal 2013, we anticipate an increase in volumes versus the prior year
reflecting modest global economic growth plus relatively stable raw material
costs and improved operating performance. We reaffirm our outlook for fiscal
2013 that EBITDA will be between $450 million and $500 million based on the
factors previously described in our Dec. 11, 2012, news release.
Conference Call
The company will host a conference call to discuss the first quarter of 2013
results on Feb. 28, 2013, at 10 a.m. Eastern Time (ET). To participate, domestic
callers should call 877-485-3107 and ask for the Greif conference call. The
number for international callers is +1 201-689-8427. Phone lines will open at
9:50 a.m. ET. The conference call will also be available through a live webcast,
including slides, which can be accessed at www.greif.com in the Investor Center.
A replay of the conference call will be available on the company's website
approximately one hour following the call.
About Greif
Greif is a world leader in industrial packaging products and services. The
company produces steel, plastic, fibre, flexible, corrugated and multiwall
containers and containerboard, and provides reconditioning, blending, filling
and packaging services for a wide range of industries. Greif also manages timber
properties in North America. The company is strategically positioned in more
than 50 countries to serve global as well as regional customers. Additional
information is on the company's website at www.greif.com.
Forward-Looking Statements
All statements, other than statements of historical facts, included in this news
release, including without limitation statements regarding our future financial
position, business strategy, budgets, projected costs, goals and plans and
objectives of management for future operations, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements generally can be identified by the use of forward-looking terminology
such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "project,"
"believe," "continue," "on track" or "target" or the
negative thereof or
variations thereon or similar terminology. All forward-looking statements made
in this news release are based on information currently available to management.
Although we believe that the expectations reflected in forward-looking
statements have a reasonable basis, we can give no assurance that these
expectations will prove to be correct. Forward-looking statements are subject to
risks and uncertainties that could cause actual events or results to differ
materially from those expressed in or implied by the statements. Such risks and
uncertainties that might cause a difference include, but are not limited to, the
following: (i) the current and future challenging global economy may adversely
affect our business; (ii) historically, our business has been sensitive to
changes in general economic or business conditions; (iii) our operations are
subject to currency exchange and political risks that could adversely affect our
results of operations; (iv) the continuing consolidation of our customer base
and suppliers may intensify pricing pressure; (v) we operate in highly
competitive industries; (vi) our business is sensitive to changes in industry
demands; (vii) raw material and energy price fluctuations and shortages may
adversely impact our manufacturing operations and costs; (viii) we may encounter
difficulties arising from acquisitions; (ix) we may incur additional
restructuring costs and there is no guarantee that our efforts to reduce costs
will be successful; (x) tax legislation initiatives or challenges to our tax
positions may adversely impact our results or condition; (xi) several operations
are conducted by joint ventures that we cannot operate solely for our benefit;
(xii) our ability to attract, develop and retain talented employees, managers
and executives is critical to our success; (xiii) our business may be adversely
impacted by work stoppages and other labor relations matters; (xiv) we may be
subject to losses that might not be covered in whole or in part by existing
insurance reserves or insurance coverage; (xv) our business depends on the
uninterrupted operations of our facilities, systems and business functions,
including our information technology and other business systems; (xvi)
legislation/regulation related to climate change, environmental and health and
safety matters and corporate social responsibility could negatively impact our
operations and financial performance; (xvii) product liability claims and other
legal proceedings could adversely affect our operations and financial
performance; (xviii) we may incur fines or penalties, damage to reputation or
other adverse consequences if our employees, agents or business partners
violate, or are alleged to have violated, anti-bribery, competition or other
laws; (xix) changing climate conditions may adversely affect our operations and
financial performance; and (xx) the frequency and volume of our timber and
timberland sales will impact our financial performance. Changes in business
results may impact our book tax rates. The risks described above are not all-
inclusive, and given these and other possible risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a prediction of
actual results. For a detailed discussion of the most significant risks and
uncertainties that could cause our actual results to differ materially from
those projected, see "Risk Factors" in Part I, Item 1A of our Form 10-K for the
year ended Oct. 31, 2012 and our other filings with the Securities and Exchange
Commission. All forward-looking statements made in this news release are
expressly qualified in their entirety by reference to such risk factors. Except
to the limited extent required by applicable law, we undertake no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars and shares in millions, except per share amounts)
Quarter ended Jan.
31,
--------------------
2013 2012[5]
---------- ---------
Net sales $1,008.6 $992.8
Cost of products sold 821.3 815.4
---------- ---------
Gross profit 187.3 177.4
Selling, general and administrative expenses 122.6 113.1
Restructuring charges 1.3 8.9
(Gain) on disposal of properties, plants and equipment,
net (1.2) (1.1)
---------- ---------
Operating profit 64.6 56.5
Interest expense, net 21.6 22.9
Debt extinguishment charges 1.3 -
Other (income) expense, net 3.1 (0.2)
---------- ---------
Income before income tax expense and equity earnings
of unconsolidated affiliates, net 38.6 33.8
Income tax expense 12.5 11.0
Equity earnings of unconsolidated affiliates, net of tax 0.1 -
---------- ---------
Net income 26.2 22.8
Net (income) attributable to noncontrolling interests (1.3) (1.1)
---------- ---------
Net income attributable to Greif, Inc. $24.9 $21.7
---------- ---------
Basic earnings per share attributable to Greif, Inc.
common shareholders:
Class A Common Stock $0.43 $0.38
Class B Common Stock $0.63 $0.55
Diluted earnings per share attributable to Greif, Inc.
common shareholders:
Class A Common Stock $0.43 $0.38
Class B Common Stock $0.63 $0.55
Shares used to calculate basic earnings per share attributable to Greif, Inc.
common shareholders:
Class A Common Stock 25.3 25.1
Class B Common Stock 22.1 22.1
Shares used to calculate diluted earnings per share attributable to Greif,
Inc. common shareholders:
Class A Common Stock 25.4 25.2
Class B Common Stock 22.1 22.1
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in millions)
Jan. 31, 2013 Oct. 31, 2012
--------------- ------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $91.6 $91.7
Trade accounts receivable 443.0 453.9
Inventories 389.3 374.3
Current portion related party notes
receivable 2.5 2.5
Other current assets 200.1 141.6
--------------- ------------------
1,126.5 1,064.0
--------------- ------------------
LONG-TERM ASSETS
Goodwill 996.3 976.1
Intangible assets 195.2 198.6
Related party note receivable 15.0 15.7
Assets held by special purpose entities 50.9 50.9
Other long-term assets 132.8 131.9
--------------- ------------------
1,390.2 1,373.2
--------------- ------------------
PROPERTIES, PLANTS AND EQUIPMENT 1,426.2 1,419.7
--------------- ------------------
$3,942.9 $3,856.9
--------------- ------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $392.9 $466.1
Short-term borrowings 102.9 77.1
Current portion of long-term debt 10.0 25.0
Other current liabilities 290.1 293.8
--------------- ------------------
795.9 862.0
--------------- ------------------
LONG-TERM LIABILITIES
Long-term debt 1,305.2 1,175.3
Liabilities held by special purpose entities 43.3 43.3
Other long-term liabilities 460.3 455.9
--------------- ------------------
1,808.8 1,674.5
--------------- ------------------
SHAREHOLDERS' EQUITY 1,338.2 1,320.4
--------------- ------------------
$3,942.9 $3,856.9
--------------- ------------------
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(Dollars in millions)
Quarter ended Jan.
31,
-------------------
2013 2012[6]
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $26.2 $22.8
Depreciation, depletion and amortization 39.5 38.7
Other non-cash adjustments to net income 4.8 (6.1)
(Decrease) in cash from changes in certain
assets and liabilities and other (139.3) (41.4)
--------- ---------
Net cash (used in) provided by operating activities (68.8) 14.0
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of properties, plants, equipment and timber
properties (28.5) (49.5)
Issuance (payments) of notes receivable to related party 0.1 (12.6)
Other 1.0 1.3
--------- ---------
Net cash used in investing activities (27.4) (60.8)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds on debt, net 122.9 63.8
Payment of deferred purchase price related to acquisitions - (14.3)
Dividends paid (24.4) (24.3)
Other (3.4) 0.2
--------- ---------
Net cash provided by financing activities 95.1 25.4
--------- ---------
EFFECTS OF EXCHANGE RATES ON CASH 1.0 (2.0)
Net decrease in cash and cash equivalents (0.1) (23.4)
Cash and cash equivalents at beginning of the period 91.7 127.4
--------- ---------
Cash and cash equivalents at end of the period $91.6 $104.0
--------- ---------
GREIF, INC. AND SUBSIDIARY COMPANIES
UNAUDITED
(Dollars in millions)
Financial Highlights by Segment
Quarter ended Jan. 31,
-------------------------
2013 2012[7]
------------ ----------
Net sales:
Rigid Industrial Packaging & Services $704.4 $703.4
Flexible Products & Services 111.4 114.8
Paper Packaging 184.2 168.1
Land Management 8.6 6.5
------------ ----------
Total net sales $1,008.6 $992.8
------------ ----------
Operating profit:
Rigid Industrial Packaging & Services $32.1 $31.0
Flexible Products & Services 0.6 2.3
Paper Packaging 27.7 20.2
Land Management 4.2 3.0
------------ ----------
Total operating profit $64.6 $56.5
------------ ----------
EBITDA[8]:
Rigid Industrial Packaging & Services $55.2 $56.5
Flexible Products & Services 3.8 6.5
Paper Packaging 36.7 28.4
Land Management 5.3 4.0
------------ ----------
Total EBITDA $101.0 $95.4
------------ ----------
Special Items by Segment
Quarter ended Jan. 31,
-------------------------
2013 2012(7)
-------- --------------
Rigid Industrial Packaging & Services
Restructuring charges $1.2 $7.3
Acquisition-related costs 0.5 1.7
Debt extinguishment charges 0.9 -
-------- --------------
Total special Items 2.6 9.0
Flexible Products & Services
Restructuring charges 0.1 1.6
Acquisition-related costs - 0.5
Debt extinguishment charges 0.2 -
-------- --------------
Total special Items 0.3 2.1
Paper Packaging
Debt extinguishment charges 0.2 -
-------- --------------
Total special Items $0.2 $-
-------- --------------
Total special items $3.1 $11.1
-------- --------------
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
WORKING CAPITAL
UNAUDITED
(Dollars in millions)
Jan. 31, 2013 Oct. 31, 2012
--------------- ------------------
Current assets $1,126.5 $1,064.0
Less: current liabilities 795.9 862.0
--------------- ------------------
Working capital 330.6 202.0
Less: cash and cash equivalents 91.6 91.7
--------------- ------------------
Net working capital $239.0 $110.3
--------------- ------------------
Long-term debt $1,305.2 $1,175.3
Plus: current portion of long-term debt 10.0 25.0
Plus: short-term borrowings 102.9 77.1
Less: cash and cash equivalents 91.6 91.7
--------------- ------------------
Net debt $1,326.5 $1,185.7
--------------- ------------------
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED EBITDA[9]
UNAUDITED
(Dollars in millions)
Quarter ended Jan.
31,
-------------------
2013 2012[10]
------- -----------
Net income $26.2 $22.8
Plus: interest expense, net 21.6 22.9
Plus: income tax expense 12.5 11.0
Plus: depreciation, depletion and amortization expense 39.5 38.7
Plus: debt extinguishment charges 1.3 -
Less: equity earnings of unconsolidated affiliates, net 0.1 -
of tax
------- -----------
EBITDA 101.0 95.4
------- -----------
Net income $26.2 $22.8
Plus: interest expense, net 21.6 22.9
Plus: income tax expense 12.5 11.0
Plus: other expense (income), net 3.1 (0.2)
Plus: debt extinguishment charges 1.3 -
Less: equity earnings of unconsolidated affiliates, net 0.1 -
of tax
------- -----------
Operating profit 64.6 56.5
Less: other expense (income), net 3.1 (0.2)
Plus: depreciation, depletion and amortization expense 39.5 38.7
------- -----------
EBITDA 101.0 95.4
------- -----------
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT EBITDA[11]
UNAUDITED
(Dollars in millions)
Quarter ended Jan.
31,
-------------------
2013 2012[12]
-------- ----------
Rigid Industrial Packaging & Services
Operating profit $32.1 $31.0
Less: other (income) expense, net 3.8 0.4
Plus: depreciation and amortization expense 26.9 25.9
-------- ----------
EBITDA 55.2 56.5
Flexible Products & Services
Operating profit $0.6 $2.3
Less: other (income) expense, net 0.3 (0.3)
Plus: depreciation and amortization expense 3.5 3.9
-------- ----------
EBITDA 3.8 6.5
Paper Packaging
Operating profit $27.7 $20.2
Less: other (income) expense, net (1.0) (0.3)
Plus: depreciation and amortization expense 8.0 7.9
-------- ----------
EBITDA 36.7 28.4
Land Management
Operating profit $4.2 $3.0
Less: other (income) expense, net - -
Plus: depreciation, depletion and amortization expense 1.1 1.0
-------- ----------
EBITDA $5.3 $4.0
-------- ----------
Consolidated EBITDA $101.0 $95.4
-------- ----------
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
GEOGRAPHIC EBITDA[13]
UNAUDITED
(Dollars in millions)
Quarter ended Jan. 31,
-------------------------
2013 2012[14]
---------- ------------
North America
Operating profit $45.4 $41.0
Less: other (income) expense, net 5.9 2.8
Plus: depreciation and amortization expense 18.6 18.0
---------- ------------
EBITDA 58.1 56.2
Europe, Middle East and Africa
Operating profit $14.3 $15.8
Less: other (income) expense, net (3.8) (3.0)
Plus: depreciation and amortization expense 15.0 15.4
---------- ------------
EBITDA 33.1 34.2
Asia Pacific and Latin America
Operating profit $4.9 $(0.3)
Less: other (income) expense, net 1.0 -
Plus: depreciation and amortization expense 5.9 5.3
---------- ------------
EBITDA $9.8 $5.0
---------- ------------
Consolidated EBITDA $101.0 $95.4
---------- ------------
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
FREE CASH FLOWS
UNAUDITED
(Dollars in millions)
Quarter ended Jan.
31,
-------------------
2013 2012[15]
--------- ---------
Net cash (used in) provided by operating activities $(68.8) $14.0
Less: Purchases of properties, plants, equipment and
timber properties (28.5) (49.5)
--------- ---------
Free Cash Flows $(97.3) $(35.5)
--------- ---------
GREIF, INC. AND SUBSIDIARY COMPANIES
GEOGRAPHIC DATA
UNAUDITED
(Dollars in millions)
Quarter ended Jan. 31,
--------------------------
2013 2012[16]
------------ -----------
Net sales:
North America $476.1 $453.5
Europe, Middle East and Africa 370.6 378.3
Asia Pacific and Latin America 161.9 161.0
------------ -----------
Total net sales $1,008.6 $992.8
------------ -----------
Operating profit:
North America $45.4 $41.0
Europe, Middle East and Africa 14.3 15.8
Asia Pacific and Latin America 4.9 (0.3)
------------ -----------
Total operating profit $64.6 $56.5
------------ -----------
EBITDA[17]:
North America $58.1 $56.2
Europe, Middle East and Africa 33.1 34.2
Asia Pacific and Latin America 9.8 5.0
------------ -----------
Total EBITDA $101.0 $95.4
------------ -----------
Notes:
The North America region includes businesses from Rigid Industrial Packaging &
Services, Paper Packaging, Flexible Products & Services and Land Management.
The Europe, Middle East and Africa region includes businesses from Rigid
Industrial Packaging & Services and Flexible Products & Services.
The Asia Pacific and Latin America region includes businesses from Rigid
Industrial Packaging & Services and Flexible Products & Services.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT OPERATING PROFIT AND EBITDA BEFORE SPECIAL ITEMS
UNAUDITED
(Dollars in millions)
Quarter ended Jan. 31,
-------------------------
2013 2012[18]
---------- ------------
Operating profit:
Rigid Industrial Packaging & Services $32.1 $31.0
Flexible Products & Services 0.6 2.3
Paper Packaging 27.7 20.2
Land Management 4.2 3.0
---------- ------------
Total operating profit 64.6 56.5
---------- ------------
Restructuring charges:
Rigid Industrial Packaging & Services 1.2 7.3
Flexible Products & Services 0.1 1.6
---------- ------------
Total restructuring charges 1.3 8.9
---------- ------------
Acquisition-related costs:
Rigid Industrial Packaging & Services 0.5 1.7
Flexible Products & Services - 0.5
---------- ------------
Total acquisition-related costs 0.5 2.2
---------- ------------
Operating profit before special items[19]:
Rigid Industrial Packaging & Services 33.8 40.0
Flexible Products & Services 0.7 4.4
Paper Packaging 27.7 20.2
Land Management 4.2 3.0
---------- ------------
Total operating profit before special items $66.4 $67.6
---------- ------------
EBITDA[20]:
Rigid Industrial Packaging & Services $55.2 $56.5
Flexible Products & Services 3.8 6.5
Paper Packaging 36.7 28.4
Land Management 5.3 4.0
---------- ------------
Total EBITDA 101.0 95.4
---------- ------------
Restructuring charges:
Rigid Industrial Packaging & Services 1.2 7.3
Flexible Products & Services 0.1 1.6
---------- ------------
Total restructuring charges 1.3 8.9
---------- ------------
Acquisition-related costs:
Rigid Industrial Packaging & Services 0.5 1.7
Flexible Products & Services - 0.5
---------- ------------
Total acquisition-related costs 0.5 2.2
---------- ------------
Debt extinguishment charges:
Rigid Industrial Packaging & Services 0.9 -
Flexible Products & Services 0.2 -
Paper Packaging 0.2 -
---------- ------------
Total debt extinguishment charges 1.3 -
---------- ------------
EBITDA before special items[21]:
Rigid Industrial Packaging & Services 57.8 65.5
Flexible Products & Services 4.1 8.6
Paper Packaging 36.9 28.4
Land Management 5.3 4.0
---------- ------------
Total EBITDA before special items $104.1 $106.5
---------- ------------
Contacts:
Analysts: Robert Lentz Media: Deb Strohmaier
614-876-2000 740-549-6074
[1] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[2] EBITDA is defined as net income plus interest expense, net, plus
income tax expense less equity earnings of unconsolidated subsidiaries, net of
tax plus depreciation, depletion and amortization.
[3] Working capital represents current assets less current liabilities.
Net working capital represents working capital less cash and cash equivalents.
[4] Net debt represents long-term debt plus the current portion of long-
term debt plus short-term borrowings less cash and cash equivalents.
Note: A reconciliation of the differences between all non-GAAP financial
measures used in this release with the most directly comparable GAAP financial
measures is included in the financial statements that are a part of this
release.
[5] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[6] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[7] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[8] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization. However, because the
company does not calculate net income by segment, this table calculates EBITDA
by segment with reference to operating profit by segment, which as demonstrated
in the table of Consolidated EBITDA is another method to achieve the same
result. See table of Segment EBITDA for reconciliation.
[9] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization.
[10] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[11] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization. However, because the company
does not calculate net income by segment, this table calculates EBITDA by
segment with reference to operating profit by segment, which as demonstrated in
the table of Consolidated EBITDA is another method to achieve the same result.
[12] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[13] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization. However, because the company
does not calculate net income by geography, this table calculates EBITDA by
geography with reference to operating profit by geography, which as demonstrated
in the table of Consolidated EBITDA is another method to achieve the same
result.
[14] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[15] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[16] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[17] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization. However, because the company
does not calculate net income by geography, this table calculates EBITDA by
geography with reference to operating profit by geography, which as demonstrated
in the table of Consolidated EBITDA is another method to achieve the same
result. See table of Geographic EBITDA for reconciliation.
[18] As restated. See Notes 18 and 19 in the Notes to Consolidated
Financial Statements included in Item 8 of our Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2012.
[19] Operating profit before special items is defined as operating profit
plus restructuring charges plus acquisition-related costs plus non-cash asset
impairment charges.
[20] EBITDA is defined as net income, plus interest expense, net, plus
income tax expense, less equity earnings of unconsolidated affiliates, net of
tax, plus depreciation, depletion and amortization. However, because the
company does not calculate net income by segment, this table calculates EBITDA
by segment with reference to operating profit by segment, which as demonstrated
in the table of Consolidated EBITDA is another method to achieve the same
result.
[21] EBITDA before special items is defined as EBITDA plus restructuring
charges plus acquisition-related costs plus debt extinguishment charges.
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Greif Inc via Thomson Reuters ONE
[HUG#1681675]
