Press Release
Greif Reports First Quarter 2024 Results
First Quarter Financial Highlights include (all results compared to the first quarter of 2023 unless otherwise noted):
- Net income of
$67.2 million or$1.17 per diluted Class A share decreased compared to net income of$89.9 million or$1.54 per diluted Class A share. Net income, excluding the impact of adjustments(1), of$72.8 million or$1.27 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of$61.9 million or$1.06 per diluted Class A share. - Adjusted EBITDA(2) of
$128.0 million decreased by$36.5 million compared to Adjusted EBITDA of$164.5 million . - Net cash provided by operating activities decreased by
$28 .4 million to$4.5 million . Adjusted free cash flow(3) decreased by$40 .6 million to a use of$48.2 million . - Total debt of
$2,291.8 million increased by$62 .5 million. Net debt(4) increased by$44 .2 million to$2,112 .5 million. Our leverage ratio(5) increased to 2.53x from 2.20x sequentially, and increased from 2.11x in the prior year quarter.
CEO Commentary
“Greif once again has produced solid financial results in a challenging operating environment,” said
Build to Last Mission Progress
Our customer satisfaction index (CSI)(6) is a key metric we utilize to ensure continued customer service excellence, with a long-term goal of a CSI score greater than 95.0. Our consolidated CSI score was 93.3 at the end of the first quarter 2024. The CSI score for the
We were pleased to announce in January the initial launch of our new customer digital portal. This digital platform was developed in collaboration with our customers and is designed to drive Legendary Customer Service through an enhanced customer experience and streamlined order interface. The portal is currently available for customers serviced from several of our US-based facilities, with the intention to make further enhancements and deploy it in
As part of our ongoing efforts to Protect Our Future, we announced in January a partnership with Ionkraft, a German-based startup that has developed a unique, chemically inert and fully recyclable barrier technology for plastic containers. This partnership is designed to explore a game-changing innovation in packaging that will enable us to better serve our broad customer base in the Agrochemical industry and other industries.
(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, (gain) loss on disposal of properties, plants and equipment, net, (gain) loss on disposal of businesses, net, and fiscal year-end change costs. |
(2) | Adjusted EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization expense, plus restructuring charges, plus acquisition and integration related costs, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus fiscal year-end change costs. |
(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. |
(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 |
(6) | CSI, an internal metric, is designed to enhance our customer’s experience. |
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 first quarter of 2023 unless otherwise noted)
Net sales are impacted mainly by the volume of primary products(7) sold, selling prices and product mix, and the impact of changes in foreign currencies against the
Net Sales Impact - Primary Products | Global Industrial Packaging |
Paper Packaging & Services |
||
Currency Translation | (2.1)% | — | % | |
Volume | (6.4)% | (3.3)% | ||
Selling Prices and Product Mix | (2.5)% | (9.5)% | ||
Total Impact of Primary Products | (11.0)% | (12.8)% |
Net sales decreased by
Gross profit increased by
Operating profit increased by
Paper Packaging & Services
Net sales decreased by
Gross profit decreased by
Operating profit decreased by
Tax Summary
During the first quarter, we recorded an income tax rate of negative 107.3 percent and a tax rate excluding the impact of adjustments of negative 85.1 percent resulting from one-time discrete tax benefits of
Dividend Summary
On
(7) | Primary products are manufactured steel, plastic and fibre drums; new and reconditioned intermediate bulk containers; linerboard, containerboard, corrugated sheets and corrugated containers; and 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 continue to be unable to determine the trajectory of product demand for the remainder of the fiscal year. As a result, we are providing only a low-end guidance estimate that is based on the continuation of demand trends we observed in the past year and the current price/cost factors in the
(in millions) | Fiscal 2024 Low-End Guidance Estimate Reported at Q1 | |
Adjusted EBITDA | ||
Adjusted free cash flow |
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 of Adjusted EBITDA, a non-GAAP financial measure which excludes restructuring charges, acquisition and integration related costs, non-cash asset impairment charges, (gain) loss on the disposal of properties, plants, equipment and businesses, net, and fiscal year-end change costs, 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 the 2024 low-end guidance 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 first quarter 2024 results on
Investor Relations contact information
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, jerrycans and other small plastics, 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
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. 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. 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.
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
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
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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED |
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Three months ended |
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(in millions, except per share amounts) | 2024 | 2023 | |||||
Net sales | $ | 1,205.8 | $ | 1,271.0 | |||
Cost of products sold | 984.2 | 1,019.4 | |||||
Gross profit | 221.6 | 251.6 | |||||
Selling, general and administrative expenses | 145.8 | 139.4 | |||||
Acquisition and integration related costs | 2.6 | 7.5 | |||||
Restructuring charges | 5.7 | 2.4 | |||||
Non-cash asset impairment charges | 1.3 | 0.5 | |||||
(Gain) loss on disposal of properties, plants and equipment, net | (2.7 | ) | — | ||||
(Gain) loss on disposal of businesses, net | — | (54.6 | ) | ||||
Operating profit | 68.9 | 156.4 | |||||
Interest expense, net | 24.2 | 22.8 | |||||
Other (income) expense, net | 9.1 | 3.3 | |||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | 35.6 | 130.3 | |||||
Income tax expense | (38.2 | ) | 37.7 | ||||
Equity earnings of unconsolidated affiliates, net of tax | (0.5 | ) | (0.5 | ) | |||
Net income | 74.3 | 93.1 | |||||
Net income attributable to noncontrolling interests | (7.1 | ) | (3.2 | ) | |||
Net income attributable to |
$ | 67.2 | $ | 89.9 | |||
Basic earnings per share attributable to |
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Class A common stock | $ | 1.17 | $ | 1.55 | |||
Class B common stock | $ | 1.75 | $ | 2.31 | |||
Diluted earnings per share attributable to |
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Class A common stock | $ | 1.17 | $ | 1.54 | |||
Class B common stock | $ | 1.75 | $ | 2.31 | |||
Shares used to calculate basic earnings per share attributable to |
|||||||
Class A common stock | 25.5 | 25.7 | |||||
Class B common stock | 21.3 | 21.7 | |||||
Shares used to calculate diluted earnings per share attributable to |
|||||||
Class A common stock | 25.6 | 25.8 | |||||
Class B common stock | 21.3 | 21.7 |
CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED |
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(in millions) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 179.3 | $ | 180.9 | |
Trade accounts receivable | 639.2 | 659.4 | |||
Inventories | 368.5 | 338.6 | |||
Other current assets | 202.3 | 190.2 | |||
1,389.3 | 1,369.1 | ||||
Long-term assets | |||||
1,704.1 | 1,693.0 | ||||
Intangible assets | 773.5 | 792.2 | |||
Operating lease right-of-use assets | 298.0 | 290.3 | |||
Other long-term assets | 232.7 | 253.6 | |||
3,008.3 | 3,029.1 | ||||
Properties, plants and equipment | 1,571.5 | 1,562.6 | |||
$ | 5,969.1 | $ | 5,960.8 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 468.0 | $ | 497.8 | |
Short-term borrowings | 18.2 | 5.4 | |||
Current portion of long-term debt | 88.3 | 88.3 | |||
Current portion of operating lease liabilities | 55.3 | 53.8 | |||
Other current liabilities | 252.9 | 294.0 | |||
882.7 | 939.3 | ||||
Long-term liabilities | |||||
Long-term debt | 2,185.3 | 2,121.4 | |||
Operating lease liabilities | 246.1 | 240.2 | |||
Other long-term liabilities | 493.7 | 548.3 | |||
2,925.1 | 2,909.9 | ||||
Redeemable noncontrolling interests | 124.9 | 125.3 | |||
Equity | |||||
1,992.5 | 1,947.9 | ||||
Noncontrolling interests | 43.9 | 38.4 | |||
Total equity | 2,036.4 | 1,986.3 | |||
$ | 5,969.1 | $ | 5,960.8 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED |
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Three months ended |
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(in millions) | 2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 74.3 | $ | 93.1 | |||
Depreciation, depletion and amortization | 60.4 | 55.1 | |||||
Asset impairments | 1.3 | 0.5 | |||||
Deferred income tax expense (benefit) | (49.2 | ) | 0.7 | ||||
Other non-cash adjustments to net income | 17.6 | (41.1 | ) | ||||
Operating working capital changes | (27.6 | ) | 6.3 | ||||
Decrease in cash from changes in other assets and liabilities | (72.3 | ) | (81.7 | ) | |||
Net cash provided by (used in) operating activities | 4.5 | 32.9 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of companies, net of cash acquired | — | (301.9 | ) | ||||
Purchases of properties, plants and equipment | (55.6 | ) | (49.3 | ) | |||
Proceeds from the sale of properties, plant and equipment and businesses, net of impacts from the purchase of acquisitions | 5.0 | 106.1 | |||||
Payments for deferred purchase price of acquisitions | (1.2 | ) | (21.7 | ) | |||
Other | (1.8 | ) | (2.3 | ) | |||
Net cash provided by (used in) investing activities | (53.6 | ) | (269.1 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds (payments) on long-term debt, net | 74.1 | 303.2 | |||||
Dividends paid to |
(29.7 | ) | (28.9 | ) | |||
Payments for share repurchases | — | (17.8 | ) | ||||
Tax withholding payments for stock-based awards | (6.8 | ) | (12.4 | ) | |||
Other | (1.5 | ) | (4.6 | ) | |||
Net cash provided by (used in) financing activities | 36.1 | 239.5 | |||||
Effects of exchange rates on cash | 11.4 | 10.6 | |||||
Net increase (decrease) in cash and cash equivalents | (1.6 | ) | 13.9 | ||||
Cash and cash equivalents, beginning of period | 180.9 | 147.1 | |||||
Cash and cash equivalents, end of period | $ | 179.3 | $ | 161.0 |
FINANCIAL HIGHLIGHTS BY SEGMENT UNAUDITED |
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Three months ended |
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(in millions) | 2024 | 2023 | |||
Net sales: | |||||
$ | 686.6 | $ | 705.8 | ||
Paper Packaging & Services | 514.6 | 560.2 | |||
Land Management | 4.6 | 5.0 | |||
Total net sales | $ | 1,205.8 | $ | 1,271.0 | |
Gross profit: | |||||
$ | 135.3 | $ | 125.3 | ||
Paper Packaging & Services | 84.4 | 124.2 | |||
Land Management | 1.9 | 2.1 | |||
Total gross profit | $ | 221.6 | $ | 251.6 | |
Operating profit: | |||||
$ | 50.9 | $ | 45.9 | ||
Paper Packaging & Services | 16.8 | 109.1 | |||
Land Management | 1.2 | 1.4 | |||
Total operating profit | $ | 68.9 | $ | 156.4 | |
EBITDA(8): | |||||
$ | 67.3 | $ | 64.2 | ||
Paper Packaging & Services | 51.7 | 142.5 | |||
Land Management | 1.7 | 2.0 | |||
Total EBITDA | $ | 120.7 | $ | 208.7 | |
Adjusted EBITDA(9): | |||||
$ | 70.9 | $ | 71.8 | ||
Paper Packaging & Services | 55.5 | 90.7 | |||
Land Management | 1.6 | 2.0 | |||
Total adjusted EBITDA | $ | 128.0 | $ | 164.5 |
(8) EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization. However, because the Company does not calculate net income by segment, this table calculates EBITDA by segment with reference to operating profit by segment, which, as demonstrated in the table of Consolidated EBITDA, is another method to achieve the same result. See the reconciliations in the table of Segment EBITDA.
(9) Adjusted EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization expense, plus restructuring charges, plus acquisition and integration related costs, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus fiscal year-end change costs.
GAAP TO NON-GAAP RECONCILIATION CONSOLIDATED ADJUSTED EBITDA UNAUDITED |
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Three months ended |
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(in millions) | 2024 | 2023 | |||||
Net income | $ | 74.3 | $ | 93.1 | |||
Plus: Interest expense, net | 24.2 | 22.8 | |||||
Plus: Income tax expense | (38.2 | ) | 37.7 | ||||
Plus: Depreciation, depletion and amortization expense | 60.4 | 55.1 | |||||
EBITDA | $ | 120.7 | $ | 208.7 | |||
Net income | $ | 74.3 | $ | 93.1 | |||
Plus: Interest expense, net | 24.2 | 22.8 | |||||
Plus: Income tax expense | (38.2 | ) | 37.7 | ||||
Plus: Other (income) expense, net | 9.1 | 3.3 | |||||
Plus: Equity earnings of unconsolidated affiliates, net of tax | (0.5 | ) | (0.5 | ) | |||
Operating profit | $ | 68.9 | $ | 156.4 | |||
Less: Other (income) expense, net | 9.1 | 3.3 | |||||
Less: Equity earnings of unconsolidated affiliates, net of tax | (0.5 | ) | (0.5 | ) | |||
Plus: Depreciation, depletion and amortization expense | 60.4 | 55.1 | |||||
EBITDA | $ | 120.7 | $ | 208.7 | |||
Plus: Restructuring charges | 5.7 | 2.4 | |||||
Plus: Acquisition and integration related costs | 2.6 | 7.5 | |||||
Plus: Non-cash asset impairment charges | 1.3 | 0.5 | |||||
Plus: (Gain) loss on disposal of properties, plants and equipment, net | (2.7 | ) | — | ||||
Plus: (Gain) loss on disposal of businesses, net | — | (54.6 | ) | ||||
Plus: Fiscal year-end change costs | 0.4 | — | |||||
Adjusted EBITDA | $ | 128.0 | $ | 164.5 |
GAAP TO NON-GAAP RECONCILIATION SEGMENT ADJUSTED EBITDA(10) UNAUDITED |
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Three months ended |
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(in millions) | 2024 | 2023 | |||||
Operating profit | 50.9 | 45.9 | |||||
Less: Other (income) expense, net | 9.5 | 3.6 | |||||
Less: Equity earnings of unconsolidated affiliates, net of tax | (0.5 | ) | (0.5 | ) | |||
Plus: Depreciation and amortization expense | 25.4 | 21.4 | |||||
EBITDA | $ | 67.3 | $ | 64.2 | |||
Plus: Restructuring charges | 0.9 | 2.1 | |||||
Plus: Acquisition and integration related costs | 2.6 | 5.0 | |||||
Plus: Non-cash asset impairment charges | — | 0.5 | |||||
Plus: (Gain) loss on disposal of properties, plants and equipment, net | (0.1 | ) | — | ||||
Plus: Fiscal year-end change costs | 0.2 | — | |||||
Adjusted EBITDA | $ | 70.9 | $ | 71.8 | |||
Paper Packaging & Services | |||||||
Operating profit | 16.8 | 109.1 | |||||
Less: Other (income) expense, net | (0.4 | ) | (0.3 | ) | |||
Plus: Depreciation and amortization expense | 34.5 | 33.1 | |||||
EBITDA | $ | 51.7 | $ | 142.5 | |||
Plus: Restructuring charges | 4.8 | 0.3 | |||||
Plus: Acquisition and integration related costs | — | 2.5 | |||||
Plus: Non-cash asset impairment charges | 1.3 | — | |||||
Plus: (Gain) loss on disposal of properties, plants and equipment, net | (2.5 | ) | — | ||||
Plus: (Gain) loss on disposal of businesses, net | — | (54.6 | ) | ||||
Plus: Fiscal year-end change costs | 0.2 | — | |||||
Adjusted EBITDA | $ | 55.5 | $ | 90.7 | |||
Land Management | |||||||
Operating profit | 1.2 | 1.4 | |||||
Plus: Depreciation and depletion expense | 0.5 | 0.6 | |||||
EBITDA | $ | 1.7 | $ | 2.0 | |||
Plus: (Gain) loss on disposal of properties, plants and equipment, net | (0.1 | ) | — | ||||
Adjusted EBITDA | $ | 1.6 | $ | 2.0 | |||
Consolidated EBITDA | $ | 120.7 | $ | 208.7 | |||
Consolidated adjusted EBITDA | $ | 128.0 | $ | 164.5 |
(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 (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus fiscal year-end change costs. 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.
GAAP TO NON-GAAP RECONCILIATION ADJUSTED FREE CASH FLOW(11) UNAUDITED |
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Three months ended |
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(in millions) | 2024 | 2023 | |||||
Net cash provided by operating activities | $ | 4.5 | $ | 32.9 | |||
Cash paid for purchases of properties, plants and equipment | (55.6 | ) | (49.3 | ) | |||
Free cash flow | $ | (51.1 | ) | $ | (16.4 | ) | |
Cash paid for acquisition and integration related costs | 2.6 | 7.5 | |||||
Cash paid for integration related ERP systems and equipment(12) | 0.3 | 1.3 | |||||
Adjusted free cash flow | $ | (48.2 | ) | $ | (7.6 | ) |
(11) 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 ERP systems and equipment.
(12) 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.
GAAP TO NON-GAAP RECONCILIATION NET INCOME, CLASS A EARNINGS PER SHARE AND TAX RATE BEFORE ADJUSTMENTS UNAUDITED |
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(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 |
Diluted Class A Earnings Per Share | Tax Rate | ||||||||||||||||||
Three months ended |
$ | 35.6 | $ | (38.2 | ) | $ | (0.5 | ) | $ | 7.1 | $ | 67.2 | $ | 1.17 | (107.3)% | ||||||||||
Restructuring charges | 5.7 | 1.4 | — | — | 4.3 | 0.08 | |||||||||||||||||||
Acquisition and integration related costs | 2.6 | 0.6 | — | — | 2.0 | 0.03 | |||||||||||||||||||
Non-cash asset impairment charges | 1.3 | 0.3 | — | — | 1.0 | 0.02 | |||||||||||||||||||
(Gain) loss on disposal of properties, plants and equipment, net | (2.7 | ) | (0.7 | ) | — | — | (2.0 | ) | (0.04 | ) | |||||||||||||||
Fiscal year-end change costs | 0.4 | 0.1 | — | — | 0.3 | 0.01 | |||||||||||||||||||
Excluding adjustments | $ | 42.9 | $ | (36.5 | ) | $ | (0.5 | ) | $ | 7.1 | $ | 72.8 | $ | 1.27 | (85.1)% | ||||||||||
Three months ended |
$ | 130.3 | $ | 37.7 | $ | (0.5 | ) | $ | 3.2 | $ | 89.9 | $ | 1.54 | 28.9 | % | ||||||||||
Restructuring charges | 2.4 | 0.6 | — | 0.1 | 1.7 | 0.03 | |||||||||||||||||||
Acquisition and integration related costs | 7.5 | 1.8 | — | — | 5.7 | 0.09 | |||||||||||||||||||
Non-cash asset impairment charges | 0.5 | 0.1 | — | — | 0.4 | 0.01 | |||||||||||||||||||
(Gain) loss on disposal of businesses, net | (54.6 | ) | (18.8 | ) | — | — | (35.8 | ) | (0.61 | ) | |||||||||||||||
Excluding adjustments | $ | 86.1 | $ | 21.4 | $ | (0.5 | ) | $ | 3.3 | $ | 61.9 | $ | 1.06 | 24.9 | % |
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.
GAAP TO NON-GAAP RECONCILIATION NET DEBT UNAUDITED |
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(in millions) | |||||||||||
Total debt | $ | 2,291.8 | $ | 2,215.1 | $ | 2,229.3 | |||||
Cash and cash equivalents | (179.3 | ) | (180.9 | ) | (161.0 | ) | |||||
Net debt | $ | 2,112.5 | $ | 2,034.2 | $ | 2,068.3 |
GAAP TO NON-GAAP RECONCILIATION LEVERAGE RATIO UNAUDITED |
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Trailing twelve month credit agreement EBITDA (in millions) |
Trailing Twelve Months Ended |
Trailing Twelve Months Ended |
Trailing Twelve Months Ended |
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Net income | $ | 360.3 | $ | 379.1 | $ | 468.5 | |||
Plus: Interest expense, net | 97.7 | 96.3 | 66.9 | ||||||
Plus: Debt extinguishment charges | — | — | 25.4 | ||||||
Plus: Income tax expense | 41.9 | 117.8 | 139.2 | ||||||
Plus: Depreciation, depletion and amortization expense | 235.9 | 230.6 | 212.3 | ||||||
EBITDA | $ | 735.8 | $ | 823.8 | $ | 912.3 | |||
Plus: Restructuring charges | 22.0 | 18.7 | 11.9 | ||||||
Plus: Acquisition and integration related costs | 14.1 | 19.0 | 14.6 | ||||||
Plus: Non-cash asset impairment charges | 21.1 | 20.3 | 9.1 | ||||||
Plus: Non-cash pension settlement charges | 3.5 | 3.5 | — | ||||||
Plus: (Gain) loss on disposal of properties, plants and equipment, net | (5.2 | ) | (2.5 | ) | (6.7 | ) | |||
Plus: (Gain) loss on disposal of businesses, net | (9.4 | ) | (64.0 | ) | (56.0 | ) | |||
Plus: Fiscal year-end change costs | 0.4 | — | — | ||||||
Adjusted EBITDA | $ | 782.3 | $ | 818.8 | $ | 885.2 | |||
Credit agreement adjustments to EBITDA(13) | 5.0 | 23.7 | 21.7 | ||||||
Credit agreement EBITDA | $ | 787.3 | $ | 842.5 | $ | 906.9 | |||
Adjusted net debt (in millions) |
For the Period Ended |
For the Period Ended |
For the Period Ended |
||||||
Total debt | $ | 2,291.8 | $ | 2,215.1 | $ | 2,229.3 | |||
Cash and cash equivalents | (179.3 | ) | (180.9 | ) | (161.0 | ) | |||
Net debt | $ | 2,112.5 | $ | 2,034.2 | $ | 2,068.3 | |||
Credit agreement adjustments to debt(14) | (122.6 | ) | (177.4 | ) | (150.5 | ) | |||
Adjusted net debt | $ | 1,989.9 | $ | 1,856.8 | $ | 1,917.8 | |||
Leverage ratio | 2.53x | 2.20x | 2.11x |
(13) 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.
(14) 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.
PROJECTED 2024 GUIDANCE RECONCILIATION ADJUSTED FREE CASH FLOW UNAUDITED |
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Fiscal 2024 Low-End Guidance Estimate | |||
(in millions) | |||
Net cash provided by operating activities | $ | 346.8 | |
Cash paid for purchases of properties, plants and equipment | (169.0 | ) | |
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 fiscal year-end change costs | 1.2 | ||
Adjusted free cash flow | $ | 200.0 |
![](https://ml.globenewswire.com/media/YTRkOTdkNTEtMDdjNi00OGYzLWFjMDktODg5ZWI2OTMwNzMzLTEwMTcwNzE=/tiny/Greif-Inc.png)
Source: Greif Inc