Delaware | 001-00566 | 31-4388903 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
425 Winter Road, Delaware, Ohio | 43,015 | ||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(i) | the Company’s consolidated net sales for the third quarter of 2016 and to the third quarter of 2015, after adjusting for the impact of divestitures for both quarters and currency translation for the third quarter of 2016, which is equal to the Company’s consolidated net sales for the applicable quarter, after adjusting each quarter for divestitures occurring during fiscal years 2016 and 2015 and after adjusting the third quarter of 2016 for currency translation applicable to such quarter; |
(ii) | earnings per diluted class A share of the Company before special items for the third quarter of 2016 and the third quarter of 2015, which is equal to earnings per diluted class A share of the Company for the applicable quarter plus restructuring charges, plus non-cash asset impairment charges, plus acquisition related costs, less gains on disposal of properties, plants, equipment and businesses, net of tax, plus the impact of Venezuela devaluation on cost of products sold, less the impact of Venezuela devaluation on other (income) expense, each on a consolidated basis for the applicable quarter; |
(iii) | the Company's consolidated operating profit for the third quarter of 2016 and the third quarter of 2015, after adjusting for special items for both quarters, which is equal to the Company's consolidated operating profit for the applicable quarter plus restructuring charges, plus non-cash asset impairment charges, plus acquisition related costs, less gains on disposal of properties, plants, equipment and businesses, net of tax, plus the impact of Venezuela devaluation on cost of products sold, each on a consolidated basis for the applicable quarter along with the Company's consolidated operating profit margin before special items for the third quarter of 2016 and the third quarter of 2015, which is equal to the amounts of the non-GAAP Measure described above for the applicable quarter divided by the Company's consolidated net sales for the applicable quarter; |
(iv) | the Company’s consolidated free cash flow for the third quarter of 2016 and the third quarter of 2015, which is equal to the Company’s consolidated net cash provided by operating activities for the applicable quarter of 2016 less cash paid for capital expenditures for the applicable quarter; |
(v) | net sales excluding the impact of divestitures for the Company’s Rigid Industrial Packaging business segment for the third quarter of 2016 and the third quarter of 2015, which is equal to that business segment’s net sales for the applicable quarter as adjusted for divestitures occurring during fiscal years 2016 and 2015 as applicable to that business segment; |
(vi) | operating profit before special items and excluding the impact of divestitures for the Company’s Rigid Industrial Packaging & Services business segment for the third quarter of 2016 and the third quarter of 2015, which is equal to that business segment’s operating profit plus restructuring charges, plus non-cash asset impairment charges, plus acquisition-related costs, less gains on disposal of properties, plants, equipment, and businesses, net, plus the impact of Venezuela devaluation on cost of products sold, and as further adjusted for divestitures occurring during fiscal years 2016 and 2015 as applicable to that business segment; |
(vii) | net sales excluding the impact of divestitures for the Company's Flexible Products & Services business segment for the third quarter of 2016 and the third quarter of 2015, which is equal to that business segment's net sales for the applicable quarter as adjusted for divestitures occurring during fiscal years 2016 and 2015 as applicable to that business segment; |
(viii) | operating loss before special items and excluding the impact of divestitures for the Company’s Flexible Products & Services business segment for the third quarter of 2016 and the third quarter of 2015, which is equal to that business segment’s operating loss plus restructuring charges, plus non-cash asset impairment charges, less gains or plus losses, as applicable, on disposal of properties, plants, equipment, and businesses, net, and as further adjusted for divestitures occurring during fiscal years 2016 and 2015 as applicable to the business segment; |
(ix) | operating profit before special items for the Company’s Land Management business segment for the third quarter of 2016 and the third quarter of 2015, which is equal to that business segment’s operating profit, less any timberland gains and less gains on disposal of properties, plants, equipment, and businesses, net, for the applicable quarter; and |
(x) | the Company's projected consolidated free cash flow for the fiscal year 2016, which is equal to the Company's projected consolidated net cash provided by operating activities for that fiscal year less the cash projected to be paid for capital expenditures for that fiscal year. |
Net Sales Impact - Excluding Divestitures: | Rigid Industrial Packaging & Services | Paper Packaging & Services | Flexible Products & Services | |||||
Currency Translation | (9.1 | )% | — | (2.2 | )% | |||
Volume | (3.4 | )% | 2.5 | % | (8.4 | )% | ||
Selling Prices and Product Mix | 4.7 | % | (4.9 | )% | (0.1 | )% | ||
(7.8 | )% | (2.4 | )% | (10.7 | )% | |||
Net Sales Impact: | Rigid Industrial Packaging & Services | Paper Packaging & Services | Flexible Products & Services | |||||
Currency Translation | (8.8 | )% | — | (2.3 | )% | |||
Volume | (6.7 | )% | 2.5 | % | (8.4 | )% | ||
Selling Prices and Product Mix | 4.7 | % | (4.9 | )% | (1.1 | )% | ||
(10.8 | )% | (2.4 | )% | (11.8 | )% |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press release issued by Greif, Inc. on August 31, 2016 announcing the financial results for its third quarter ended July 31, 2016. |
99.2 | File transcript of recorded remarks of management of Greif, Inc., made available on the Company's website at www.greif.com/investors on August 31, 2016, regarding the financial results for its third quarter ended July 31, 2016. |
99.3 | File transcript of conference call with interested investors and financial analysts held by management of Greif, Inc. on September 1, 2016. |
GREIF, INC. | ||
Date: September 7, 2016 | By | /s/ Lawrence A. Hilsheimer |
Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press release issued by Greif, Inc. on August 31, 2016 announcing the financial results for its third quarter ended July 31, 2016. |
99.2 | File transcript of recorded remarks of management of Greif, Inc., made available on the Company's website at www.greif.com/investors on August 31, 2016, regarding the financial results for its third quarter ended July 31, 2016. |
99.3 | File transcript of conference call with interested investors and financial analysts held by management of Greif, Inc. on September 1, 2016. |
Contact: | Matt Eichmann |
740-549-6067 | |
matt.eichmann@greif.com |
• | Revised fiscal year 2016 Class A earnings per share guidance to $2.36 - $2.56 per share, excluding gains and losses on the sales of businesses, timberland and property, plant and equipment, acquisition costs and restructuring and impairment charges. |
• | Net income for the third quarter of 2016 of $46.1 million or $0.78 per diluted Class A share compared to net income of $8.6 million or $0.15 per diluted Class A share for the third quarter of 2015. Earnings per share, excluding the impact of special items1, was $0.91 per diluted Class A share for the third quarter of 2016 compared to $0.60 per diluted Class A share for the third quarter of 2015. |
• | Net sales decreased $85.0 million to $845.0 million for the third quarter of 2016 compared to $930.0 million for the third quarter of 2015. Net sales for the third quarter of 2016, adjusting for the effect of divestitures for both quarters and currency translation for the third quarter of 20162, were flat compared to the third quarter 2015. Sales were negatively impacted by weakness in agricultural markets in Europe and North America. |
• | Gross profit improved to $176.5 million for the third quarter of 2016 compared to $166.8 million for the third quarter of 2015. Gross profit margin improved to 20.9 percent for the third quarter of 2016 from 17.9 percent for the same period in 2015. The third quarter of 2015 gross profit included a net charge related to the contribution from our Venezuelan operations, which decreased gross profit for the third quarter 2015 by $6.0 million. |
• | Operating profit improved $27.4 million and operating profit before special items1 improved $4.6 million from the third quarter of 2015 to the third quarter of 2016. Operating profit margin before special items1 improved to 9.9 percent for the third quarter of 2016 from 8.5 percent for the same period in 2015. |
• | Cash provided by operating activities increased $0.4 million from the third quarter of 2016 compared to the same period in 2015. Free cash flow3 improved $12.2 million for the third quarter of 2016 compared to the third quarter of 2015 and long-term debt has decreased $88.0 million since year-end. |
1 | A summary of all special items that are excluded from the earnings per diluted Class A share before special items and from operating profit before special items is set forth in the Selected Financial Highlights table following the Dividend Summary in this release. |
2 | A summary of the adjustments for the impact of divestitures and currency translation is set forth in the GAAP to Non-GAAP Reconciliation Net Sales to Net Sales Excluding the Impact of Divestitures and Currency Translation in the financial schedules that are part of this release. |
3 | Free cash flow is defined as net cash provided by operating activities less cash paid for capital expenditures. |
Class A Earnings Per Share before Special Items | $2.36 - $2.56 |
Capital Expenditures | $95 - $110 million |
Free Cash Flow | $160 - $190 million |
Restructuring Expense | $20 - $30 million |
Tax Rate | 35 - 38 percent |
Net Sales Impact - Excluding Divestitures: | Rigid Industrial Packaging & Services | Paper Packaging & Services | Flexible Products & Services | |||||
Currency Translation | (9.1 | )% | — | (2.2 | )% | |||
Volume | 1.8 | % | 2.5 | % | (8.4 | )% | ||
Selling Prices and Product Mix | (0.5 | )% | (4.9 | )% | (0.1 | )% | ||
(7.8 | )% | (2.4 | )% | (10.7 | )% |
Net Sales Impact: | Rigid Industrial Packaging & Services | Paper Packaging & Services | Flexible Products & Services | |||||
Currency Translation | (8.8 | )% | — | (2.3 | )% | |||
Volume | (1.7 | )% | 2.5 | % | (8.4 | )% | ||
Selling Prices and Product Mix | (0.3 | )% | (4.9 | )% | (1.1 | )% | ||
(10.8 | )% | (2.4 | )% | (11.8 | )% |
4 | A summary of all adjustments by business segment related to the impact of divestitures and special items that are excluded from net sales, gross profit and operating profit is set forth in the GAAP to Non-GAAP Reconciliation Selected Financial Information Excluding the Impact of Divestitures in the financial schedules that are part of this release. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Selected Financial Highlights | |||||||||||||||
Net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 | |||||||
Gross profit | 176.5 | 166.8 | 501.5 | 501.8 | |||||||||||
Gross profit margin | 20.9 | % | 17.9 | % | 20.4 | % | 18.3 | % | |||||||
Operating profit | 71.6 | 44.2 | 172.0 | 160.7 | |||||||||||
Operating profit before special items | 83.9 | 79.3 | 221.3 | 194.2 | |||||||||||
EBITDA | 101.2 | 78.0 | 261.2 | 260.9 | |||||||||||
EBITDA before special items | 113.5 | 108.2 | 310.5 | 289.5 | |||||||||||
Cash provided by operating activities | 100.3 | 99.9 | 158.0 | 73.4 | |||||||||||
Net income attributable to Greif, Inc. | 46.1 | 8.6 | 66.4 | 59.5 | |||||||||||
Diluted Class A earnings per share attributable to Greif, Inc. | $ | 0.78 | $ | 0.15 | $ | 1.13 | $ | 1.02 | |||||||
Diluted Class A earnings per share attributable to Greif, Inc. before special items | $ | 0.91 | $ | 0.60 | $ | 1.79 | $ | 1.41 | |||||||
Special items | |||||||||||||||
Restructuring charges | $ | 10.2 | $ | 16.2 | $ | 17.9 | $ | 26.7 | |||||||
Acquisition-related costs | — | 0.1 | 0.1 | 0.3 | |||||||||||
Timberland gains | — | — | — | (24.3 | ) | ||||||||||
Non-cash asset impairment charges | 4.1 | 17.6 | 44.9 | 22.3 | |||||||||||
Gain on disposal of properties, plants and equipment and businesses, net | (2.0 | ) | (8.1 | ) | (13.6 | ) | (0.8 | ) | |||||||
Impact of Venezuela devaluation of inventory in cost of products sold | — | 9.3 | — | 9.3 | |||||||||||
Impact of Venezuela devaluation on other income | — | (4.9 | ) | — | (4.9 | ) | |||||||||
Total special items | 12.3 | 30.2 | 49.3 | 28.6 | |||||||||||
Total special items, net of tax and noncontrolling interest | 7.5 | 26.5 | 38.7 | 23.2 | |||||||||||
Impact of total special items, net of tax, on diluted Class A earnings per share attributable to Greif, Inc. | $ | 0.13 | $ | 0.45 | $ | 0.66 | $ | 0.39 | |||||||
July 31, 2016 | October 31, 2015 | July 31, 2015 | October 31, 2014 | ||||||||||||
Operating working capital5 | 366.1 | 345.4 | 439.2 | 411.3 |
5 | Operating working capital represents trade accounts receivable plus inventories less accounts payable. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 | |||||||
Cost of products sold | 668.5 | 763.2 | 1,954.5 | 2,246.4 | |||||||||||
Gross profit | 176.5 | 166.8 | 501.5 | 501.8 | |||||||||||
Selling, general and administrative expenses | 92.6 | 96.9 | 280.3 | 317.2 | |||||||||||
Restructuring charges | 10.2 | 16.2 | 17.9 | 26.7 | |||||||||||
Timberland gains | — | — | — | (24.3 | ) | ||||||||||
Non-cash asset impairment charges | 4.1 | 17.6 | 44.9 | 22.3 | |||||||||||
Gain on disposal of properties, plants and equipment, net | (0.7 | ) | (7.0 | ) | (9.5 | ) | (9.3 | ) | |||||||
(Gain) loss on disposal of businesses | (1.3 | ) | (1.1 | ) | (4.1 | ) | 8.5 | ||||||||
Operating profit | 71.6 | 44.2 | 172.0 | 160.7 | |||||||||||
Interest expense, net | 19.8 | 18.4 | 58.2 | 56.2 | |||||||||||
Other (income) expense, net | 2.7 | (1.6 | ) | 7.4 | 1.0 | ||||||||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | 49.1 | 27.4 | 106.4 | 103.5 | |||||||||||
Income tax expense | 3.5 | 18.7 | 38.2 | 45.8 | |||||||||||
Equity earnings of unconsolidated affiliates, net of tax | (0.8 | ) | (0.6 | ) | (0.8 | ) | (0.3 | ) | |||||||
Net income | 46.4 | 9.3 | 69.0 | 58.0 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (0.3 | ) | (0.7 | ) | (2.6 | ) | 1.5 | ||||||||
Net income attributable to Greif, Inc. | $ | 46.1 | $ | 8.6 | $ | 66.4 | $ | 59.5 | |||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||
Class A Common Stock | $ | 0.78 | $ | 0.15 | $ | 1.13 | $ | 1.02 | |||||||
Class B Common Stock | $ | 1.18 | $ | 0.22 | $ | 1.69 | $ | 1.51 | |||||||
Diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||
Class A Common Stock | $ | 0.78 | $ | 0.15 | $ | 1.13 | $ | 1.02 | |||||||
Class B Common Stock | $ | 1.18 | $ | 0.22 | $ | 1.69 | $ | 1.51 | |||||||
Shares used to calculate basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||
Class A Common Stock | 25.8 | 25.7 | 25.7 | 25.7 | |||||||||||
Class B Common Stock | 22.0 | 22.1 | 22.1 | 22.1 | |||||||||||
Shares used to calculate diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||
Class A Common Stock | 25.8 | 25.7 | 25.7 | 25.7 | |||||||||||
Class B Common Stock | 22.0 | 22.1 | 22.1 | 22.1 |
July 31, 2016 | October 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 94.3 | $ | 106.2 | |||
Trade accounts receivable | 418.1 | 403.7 | |||||
Inventories | 288.5 | 297.0 | |||||
Other current assets | 145.4 | 201.6 | |||||
946.3 | 1,008.5 | ||||||
LONG-TERM ASSETS | |||||||
Goodwill | 791.0 | 807.1 | |||||
Intangible assets | 119.8 | 132.7 | |||||
Assets held by special purpose entities | 50.9 | 50.9 | |||||
Other long-term assets | 102.9 | 98.8 | |||||
1,064.6 | 1,089.5 | ||||||
PROPERTIES, PLANTS AND EQUIPMENT | 1,173.0 | 1,217.7 | |||||
$ | 3,183.9 | $ | 3,315.7 | ||||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 340.5 | $ | 355.3 | |||
Short-term borrowings | 55.2 | 40.7 | |||||
Current portion of long-term debt | 300.3 | 30.7 | |||||
Other current liabilities | 218.3 | 220.3 | |||||
914.3 | 647.0 | ||||||
LONG-TERM LIABILITIES | |||||||
Long-term debt | 758.6 | 1,116.2 | |||||
Liabilities held by special purpose entities | 43.3 | 43.3 | |||||
Other long-term liabilities | 441.2 | 449.3 | |||||
1,243.1 | 1,608.8 | ||||||
REDEEMABLE NONCONTROLLING INTEREST | 32.3 | — | |||||
EQUITY | |||||||
Total Greif, Inc. equity | 981.8 | 1,015.6 | |||||
Noncontrolling interests | 12.4 | 44.3 | |||||
994.2 | 1,059.9 | ||||||
$ | 3,183.9 | $ | 3,315.7 |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net income | $ | 46.4 | $ | 9.3 | $ | 69.0 | $ | 58.0 | |||||||
Depreciation, depletion and amortization | 31.5 | 31.6 | 95.8 | 100.9 | |||||||||||
Asset impairments | 4.1 | 17.6 | 44.9 | 22.3 | |||||||||||
Other non-cash adjustments to net income | (1.0 | ) | (4.3 | ) | (12.3 | ) | (28.2 | ) | |||||||
Operating working capital changes | 0.3 | 19.6 | (25.8 | ) | (59.8 | ) | |||||||||
Deferred purchase price on sold receivables | (5.0 | ) | (10.2 | ) | (20.2 | ) | (10.8 | ) | |||||||
Increase (decrease) in cash from changes in other assets and liabilities | 24.0 | 36.3 | 6.6 | (9.0 | ) | ||||||||||
Net cash provided by operating activities | 100.3 | 99.9 | 158.0 | 73.4 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (1.1 | ) | (0.4 | ) | (1.5 | ) | ||||||||
Collection of subordinated note receivable | — | — | 44.2 | — | |||||||||||
Purchases of properties, plants and equipment | (26.6 | ) | (38.4 | ) | (71.4 | ) | (108.2 | ) | |||||||
Purchases of and investments in timber properties | (1.2 | ) | (12.8 | ) | (4.7 | ) | (38.2 | ) | |||||||
Purchases of properties, plants and equipment with insurance proceeds | (0.8 | ) | — | (4.4 | ) | — | |||||||||
Proceeds from the sale of properties, plants and equipment, businesses, timberland and other assets | 7.3 | 14.0 | 34.7 | 65.7 | |||||||||||
Proceeds on insurance recoveries | — | 3.4 | 6.6 | 3.4 | |||||||||||
Net cash provided by (used in) investing activities | (21.3 | ) | (34.9 | ) | 4.6 | (78.8 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from (payments on) debt, net | (37.4 | ) | 12.8 | (82.0 | ) | 121.2 | |||||||||
Dividends paid to Greif, Inc. shareholders | (24.7 | ) | (24.8 | ) | (74.0 | ) | (74.0 | ) | |||||||
Other | (7.9 | ) | (2.4 | ) | (15.2 | ) | (3.8 | ) | |||||||
Net cash provided by (used in) financing activities | (70.0 | ) | (14.4 | ) | (171.2 | ) | 43.4 | ||||||||
Effects of exchange rates on cash | (4.3 | ) | (16.3 | ) | (3.3 | ) | (21.4 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 4.7 | 34.3 | (11.9 | ) | 16.6 | ||||||||||
Cash and cash equivalents, beginning of period | 89.6 | 67.4 | 106.2 | 85.1 | |||||||||||
Cash and cash equivalents, end of period | $ | 94.3 | $ | 101.7 | $ | 94.3 | $ | 101.7 |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales: | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 596.8 | $ | 669.0 | $ | 1,721.3 | $ | 1,985.3 | |||||||
Paper Packaging & Services | 172.5 | 176.7 | 498.1 | 496.3 | |||||||||||
Flexible Products & Services | 69.9 | 79.2 | 219.0 | 249.3 | |||||||||||
Land Management | 5.8 | 5.1 | 17.6 | 17.3 | |||||||||||
Total net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 | |||||||
Operating profit (loss): | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 56.7 | $ | 29.5 | $ | 113.4 | $ | 75.5 | |||||||
Paper Packaging & Services | 19.1 | 21.5 | 64.4 | 76.7 | |||||||||||
Flexible Products & Services | (5.9 | ) | (9.7 | ) | (11.9 | ) | (23.8 | ) | |||||||
Land Management | 1.7 | 2.9 | 6.1 | 32.3 | |||||||||||
Total operating profit | $ | 71.6 | $ | 44.2 | $ | 172.0 | $ | 160.7 | |||||||
EBITDA6: | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 77.2 | $ | 52.5 | $ | 173.5 | $ | 145.2 | |||||||
Paper Packaging & Services | 27.1 | 28.7 | 88.0 | 98.6 | |||||||||||
Flexible Products & Services | (5.7 | ) | (6.9 | ) | (9.0 | ) | (17.8 | ) | |||||||
Land Management | 2.6 | 3.7 | 8.7 | 34.9 | |||||||||||
Total EBITDA | $ | 101.2 | $ | 78.0 | $ | 261.2 | $ | 260.9 | |||||||
EBITDA before special items: | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 84.0 | $ | 77.9 | $ | 213.4 | $ | 194.0 | |||||||
Paper Packaging & Services | 27.9 | 29.6 | 90.2 | 100.4 | |||||||||||
Flexible Products & Services | (0.8 | ) | (1.6 | ) | (0.8 | ) | (12.8 | ) | |||||||
Land Management | 2.4 | 2.3 | 7.7 | 7.9 | |||||||||||
Total EBITDA before special items | $ | 113.5 | $ | 108.2 | $ | 310.5 | $ | 289.5 |
6 | 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 (loss) 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. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales: | |||||||||||||||
United States | $ | 400.3 | $ | 431.5 | $ | 1,179.0 | $ | 1,269.7 | |||||||
Europe, Middle East and Africa | 318.9 | 337.3 | 905.9 | 979.5 | |||||||||||
Asia Pacific and other Americas | 125.8 | 161.2 | 371.1 | 499.0 | |||||||||||
Total net sales | 845.0 | 930.0 | 2,456.0 | 2,748.2 | |||||||||||
Gross profit: | |||||||||||||||
United States | $ | 89.1 | $ | 83.9 | $ | 260.1 | $ | 253.9 | |||||||
Europe, Middle East and Africa | 66.0 | 65.1 | 169.4 | 175.8 | |||||||||||
Asia Pacific and other Americas | 21.4 | 17.8 | 72.0 | 72.1 | |||||||||||
Total gross profit | $ | 176.5 | $ | 166.8 | $ | 501.5 | $ | 501.8 | |||||||
Operating profit (loss): | |||||||||||||||
United States | $ | 47.6 | $ | 43.4 | $ | 120.2 | $ | 114.5 | |||||||
Europe, Middle East and Africa | 18.9 | 12.2 | 38.9 | 32.2 | |||||||||||
Asia Pacific and other Americas | 5.1 | (11.4 | ) | 12.9 | 14.0 | ||||||||||
Total operating profit | $ | 71.6 | $ | 44.2 | $ | 172.0 | $ | 160.7 |
July 31, 2016 | October 31, 2015 | ||||||
Trade accounts receivable | $ | 418.1 | $ | 403.7 | |||
Plus: inventories | 288.5 | 297.0 | |||||
Less: accounts payable | 340.5 | 355.3 | |||||
Operating working capital | $ | 366.1 | $ | 345.4 |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 46.4 | $ | 9.3 | $ | 69.0 | $ | 58.0 | |||||||
Plus: interest expense, net | 19.8 | 18.4 | 58.2 | 56.2 | |||||||||||
Plus: income tax expense | 3.5 | 18.7 | 38.2 | 45.8 | |||||||||||
Plus: depreciation, depletion and amortization expense | 31.5 | 31.6 | 95.8 | 100.9 | |||||||||||
EBITDA | $ | 101.2 | $ | 78.0 | $ | 261.2 | $ | 260.9 | |||||||
Net income | $ | 46.4 | $ | 9.3 | $ | 69.0 | $ | 58.0 | |||||||
Plus: interest expense, net | 19.8 | 18.4 | 58.2 | 56.2 | |||||||||||
Plus: income tax expense | 3.5 | 18.7 | 38.2 | 45.8 | |||||||||||
Plus: other (income) expense, net | 2.7 | (1.6 | ) | 7.4 | 1.0 | ||||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.8 | ) | (0.6 | ) | (0.8 | ) | (0.3 | ) | |||||||
Operating profit | 71.6 | 44.2 | 172.0 | 160.7 | |||||||||||
Less: other (income) expense, net | 2.7 | (1.6 | ) | 7.4 | 1.0 | ||||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.8 | ) | (0.6 | ) | (0.8 | ) | (0.3 | ) | |||||||
Plus: depreciation, depletion and amortization expense | 31.5 | 31.6 | 95.8 | 100.9 | |||||||||||
EBITDA | $ | 101.2 | $ | 78.0 | $ | 261.2 | $ | 260.9 |
7 | EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization. As demonstrated in this table, EBITDA can also be calculated with reference to operating profit. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Rigid Industrial Packaging & Services | |||||||||||||||
Operating profit | $ | 56.7 | $ | 29.5 | $ | 113.4 | $ | 75.5 | |||||||
Less: other (income) expense, net | 1.1 | (1.1 | ) | 4.4 | 0.5 | ||||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | (0.8 | ) | (0.1 | ) | (0.8 | ) | — | ||||||||
Plus: depreciation and amortization expense | 20.8 | 21.8 | 63.7 | 70.2 | |||||||||||
EBITDA | $ | 77.2 | $ | 52.5 | $ | 173.5 | $ | 145.2 | |||||||
Restructuring charges | 6.9 | 11.6 | 11.2 | 20.4 | |||||||||||
Acquisition-related costs | — | 0.1 | 0.1 | 0.3 | |||||||||||
Non-cash asset impairment charges | 1.3 | 16.4 | 39.8 | 21.3 | |||||||||||
(Gain) loss on disposal of properties, plants, equipment and businesses, net | (1.4 | ) | (7.1 | ) | (11.2 | ) | 2.4 | ||||||||
Impact of Venezuela devaluation of inventory on cost of products sold | — | 9.3 | — | 9.3 | |||||||||||
Impact of Venezuela devaluation on other (income) expense | — | (4.9 | ) | — | (4.9 | ) | |||||||||
EBITDA before special items | $ | 84.0 | $ | 77.9 | $ | 213.4 | $ | 194.0 | |||||||
Paper Packaging & Services | |||||||||||||||
Operating profit | $ | 19.1 | $ | 21.5 | $ | 64.4 | $ | 76.7 | |||||||
Less: other income, net | — | (0.4 | ) | — | (0.4 | ) | |||||||||
Plus: depreciation and amortization expense | 8.0 | 6.8 | 23.6 | 21.5 | |||||||||||
EBITDA | $ | 27.1 | $ | 28.7 | $ | 88.0 | $ | 98.6 | |||||||
Restructuring charges | 1.1 | 0.5 | 1.1 | 1.0 | |||||||||||
Non-cash asset impairment charges | — | 0.3 | 1.5 | 0.8 | |||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (0.3 | ) | 0.1 | (0.4 | ) | — | |||||||||
EBITDA before special items | $ | 27.9 | $ | 29.6 | $ | 90.2 | $ | 100.4 | |||||||
Flexible Products & Services | |||||||||||||||
Operating loss | $ | (5.9 | ) | $ | (9.7 | ) | $ | (11.9 | ) | $ | (23.8 | ) | |||
Less: other (income) expense, net | 1.6 | (0.1 | ) | 3.0 | 0.9 | ||||||||||
Less: equity earnings of unconsolidated affiliates, net of tax | — | (0.5 | ) | — | (0.3 | ) | |||||||||
Plus: depreciation and amortization expense | 1.8 | 2.2 | 5.9 | 6.6 | |||||||||||
EBITDA | $ | (5.7 | ) | $ | (6.9 | ) | $ | (9.0 | ) | $ | (17.8 | ) | |||
Restructuring charges | 2.2 | 4.1 | 5.6 | 5.3 | |||||||||||
Non-cash asset impairment charges | 2.8 | 0.9 | 3.6 | 0.2 | |||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (0.1 | ) | 0.3 | (1.0 | ) | (0.5 | ) | ||||||||
EBITDA before special items | $ | (0.8 | ) | $ | (1.6 | ) | $ | (0.8 | ) | $ | (12.8 | ) | |||
Land Management | |||||||||||||||
Operating profit | $ | 1.7 | $ | 2.9 | $ | 6.1 | $ | 32.3 | |||||||
Plus: depreciation, depletion and amortization expense | 0.9 | 0.8 | 2.6 | 2.6 | |||||||||||
EBITDA | $ | 2.6 | $ | 3.7 | $ | 8.7 | $ | 34.9 | |||||||
Timberland gains | — | — | — | (24.3 | ) | ||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (0.2 | ) | $ | (1.4 | ) | (1.0 | ) | $ | (2.7 | ) | |||||
EBITDA before special items | $ | 2.4 | $ | 2.3 | $ | 7.7 | $ | 7.9 | |||||||
Consolidated EBITDA | $ | 101.2 | $ | 78.0 | $ | 261.2 | $ | 260.9 | |||||||
Consolidated EBITDA before special items | $ | 113.5 | $ | 108.2 | $ | 310.5 | $ | 289.5 |
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 (loss) by segment, which, as demonstrated in the table of Consolidated EBITDA, is another method to achieve the same result. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net cash provided by operating activities | $ | 100.3 | $ | 99.9 | $ | 158.0 | $ | 73.4 | |||||||
Less: Cash paid for capital expenditures | (26.6 | ) | (38.4 | ) | (71.4 | ) | (108.2 | ) | |||||||
Free Cash Flow | $ | 73.7 | $ | 61.5 | $ | 86.6 | $ | (34.8 | ) |
FREE CASH FLOW FROM VENEZUELA OPERATIONS10 | |||||||||||||||
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net cash provided by (used in) operating activities for Venezuela | $ | — | $ | (4.3 | ) | $ | — | $ | 1.3 | ||||||
Less: Cash paid for capital expenditures for Venezuela | — | — | — | (14.4 | ) | ||||||||||
Free Cash Flow for Venezuela | $ | — | $ | (4.3 | ) | $ | — | $ | (13.1 | ) |
FREE CASH FLOW EXCLUDING THE IMPACT OF VENEZUELA OPERATIONS11 | |||||||||||||||
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net cash provided by operating activities excluding the impact of Venezuela operations | $ | 100.3 | $ | 104.2 | $ | 158.0 | $ | 72.1 | |||||||
Less: Cash paid for capital expenditures excluding the impact of Venezuela operations | (26.6 | ) | (38.4 | ) | (71.4 | ) | (93.8 | ) | |||||||
Free Cash Flow Excluding the Impact of Venezuela Operations | $ | 73.7 | $ | 65.8 | $ | 86.6 | $ | (21.7 | ) |
PROJECTED FREE CASH FLOW12 | |||||||
Forecast Range | |||||||
Scenario 1 | Scenario 2 | ||||||
Net cash provided by operating activities | $ | 255.0 | $ | 300.0 | |||
Less: Cash paid for capital expenditures | (95.0 | ) | (110.0 | ) | |||
Free Cash Flow | $ | 160.0 | $ | 190.0 |
9 | Free cash flow is defined as net cash provided by operating activities less cash paid for capital expenditures. |
10 | Free cash flow from Venezuela operations is defined as net cash provided by Venezuela operating activities less cash paid for Venezuela capital expenditures. |
11 | Free cash flow excluding the impact of Venezuela operations is defined as net cash provided by operating activities, excluding Venezuela’s net cash provided by operating activities, less capital expenditures, excluding Venezuela’s capital expenditures. The information is relevant and presented due to the impact of the devaluation of the Venezuelan currency at the end of the third quarter 2015 from 6.3 bolivars per USD to 199.4 bolivars per USD. The translated value of both the cash provided by operating activities of Venezuela and the cash paid for capital expenditures does not reflect the true economic impact to the company because actual conversion of bolivars to U.S. dollars at the official exchange rate used for the first three quarters of 2015 would not have been possible. |
12 | The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2016. The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results. |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating profit (loss): | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 56.7 | $ | 29.5 | $ | 113.4 | $ | 75.5 | |||||||
Paper Packaging & Services | 19.1 | 21.5 | 64.4 | 76.7 | |||||||||||
Flexible Products & Services | (5.9 | ) | (9.7 | ) | (11.9 | ) | (23.8 | ) | |||||||
Land Management | 1.7 | 2.9 | 6.1 | 32.3 | |||||||||||
Total operating profit | 71.6 | 44.2 | 172.0 | 160.7 | |||||||||||
Restructuring charges: | |||||||||||||||
Rigid Industrial Packaging & Services | 6.9 | 11.6 | 11.2 | 20.4 | |||||||||||
Paper Packaging & Services | 1.1 | 0.5 | 1.1 | 1.0 | |||||||||||
Flexible Products & Services | 2.2 | 4.1 | 5.6 | 5.3 | |||||||||||
Total restructuring charges | 10.2 | 16.2 | 17.9 | 26.7 | |||||||||||
Acquisition-related costs: | |||||||||||||||
Rigid Industrial Packaging & Services | — | 0.1 | 0.1 | 0.3 | |||||||||||
Total acquisition-related costs | — | 0.1 | 0.1 | 0.3 | |||||||||||
Timberland gains: | |||||||||||||||
Land Management | — | — | — | (24.3 | ) | ||||||||||
Total timberland gains | — | — | — | (24.3 | ) | ||||||||||
Non-cash asset impairment charges: | |||||||||||||||
Rigid Industrial Packaging & Services | 1.3 | 16.4 | 39.8 | 21.3 | |||||||||||
Paper Packaging & Services | — | 0.3 | 1.5 | 0.8 | |||||||||||
Flexible Products & Services | 2.8 | 0.9 | 3.6 | 0.2 | |||||||||||
Total non-cash asset impairment charges | 4.1 | 17.6 | 44.9 | 22.3 | |||||||||||
(Gain) loss on disposal of properties, plants, equipment and businesses, net: | |||||||||||||||
Rigid Industrial Packaging & Services | (1.4 | ) | (7.1 | ) | (11.2 | ) | 2.4 | ||||||||
Paper Packaging | (0.3 | ) | 0.1 | (0.4 | ) | — | |||||||||
Flexible Products & Services | (0.1 | ) | 0.3 | (1.0 | ) | (0.5 | ) | ||||||||
Land Management | (0.2 | ) | (1.4 | ) | (1.0 | ) | (2.7 | ) | |||||||
Total gain on disposal of properties, plants, equipment and businesses, net | (2.0 | ) | (8.1 | ) | (13.6 | ) | (0.8 | ) | |||||||
Impact of Venezuela devaluation of inventory on cost of products sold | |||||||||||||||
Rigid Industrial Packaging & Services | — | 9.3 | — | 9.3 | |||||||||||
Total Impact of Venezuela devaluation of inventory on cost of products sold | — | 9.3 | — | 9.3 | |||||||||||
Operating profit (loss) before special items: | |||||||||||||||
Rigid Industrial Packaging & Services | 63.5 | 59.8 | 153.3 | 129.2 | |||||||||||
Paper Packaging & Services | 19.9 | 22.4 | 66.6 | 78.5 | |||||||||||
Flexible Products & Services | (1.0 | ) | (4.4 | ) | (3.7 | ) | (18.8 | ) | |||||||
Land Management | 1.5 | 1.5 | 5.1 | 5.3 | |||||||||||
Total operating profit before special items | $ | 83.9 | $ | 79.3 | $ | 221.3 | $ | 194.2 |
13 | Operating profit (loss) before special items is defined as operating profit (loss), plus restructuring charges plus acquisition-related costs, plus non-cash impairment charges, less timberland gains, less (gain) loss on disposal of properties, plants, equipment and businesses, net, plus the impact of Venezuela devaluation on cost of products sold. |
Three months ended July 31, 2016 | Class A | ||||||
Net Income Attributable to Greif, Inc. | $ | 46.1 | $ | 0.78 | |||
Less: Gain on disposal of properties, plants, equipment and businesses, net | (1.8 | ) | (0.03 | ) | |||
Plus: Restructuring charges | 7.0 | 0.12 | |||||
Plus: Non-cash asset impairment charges | 2.3 | 0.04 | |||||
Net Income Attributable to Greif, Inc. Excluding Special Items | $ | 53.6 | $ | 0.91 | |||
Three months ended July 31, 2015 | Class A | ||||||
Net Income Attributable to Greif, Inc. | $ | 8.6 | $ | 0.15 | |||
Less: Gain on disposal of properties, plants, equipment and businesses, net | (5.8 | ) | (0.10 | ) | |||
Less: Venezuela devaluation on other income/expense | (4.9 | ) | (0.08 | ) | |||
Plus: Restructuring charges | 11.3 | 0.19 | |||||
Plus: Non-cash asset impairment charges | 16.6 | 0.28 | |||||
Plus: Venezuela devaluation of inventory on cost of products sold | $ | 9.3 | 0.16 | ||||
Net Income Attributable to Greif, Inc. Excluding Special Items | $ | 35.1 | $ | 0.60 | |||
Nine months ended July 31, 2016 | Class A | ||||||
Net Income Attributable to Greif, Inc. | $ | 66.4 | $ | 1.13 | |||
Less: Gain on disposal of properties, plants, equipment and businesses, net | (10.4 | ) | (0.18 | ) | |||
Plus: Restructuring charges | 11.9 | 0.20 | |||||
Plus: Non-cash asset impairment charges | 37.1 | 0.64 | |||||
Plus: Acquisition related costs | 0.1 | — | |||||
Net Income Attributable to Greif, Inc. Excluding Special Items | $ | 105.1 | $ | 1.79 | |||
Nine months ended July 31, 2015 | Class A | ||||||
Net Income Attributable to Greif, Inc. | $ | 59.5 | $ | 1.02 | |||
Less: Gain on disposal of properties, plants, equipment and businesses, net | (4.5 | ) | (0.08 | ) | |||
Less: Timberland Gains | (14.9 | ) | (0.25 | ) | |||
Less: Venezuela devaluation on other income/expense | (4.9 | ) | (0.08 | ) | |||
Plus: Restructuring charges | 18.4 | 0.31 | |||||
Plus: Non-cash asset impairment charges | 19.6 | 0.33 | |||||
Plus: Acquisition related costs | 0.2 | — | |||||
Plus: Venezuela devaluation of inventory on cost of products sold | $ | 9.3 | $ | 0.16 | |||
Net Income Attributable to Greif, Inc. Excluding Special Items | $ | 82.7 | $ | 1.41 |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||||||||||
2016 | Impact of Divestitures | Excluding the Impact of Divestitures | 2016 | Impact of Divestitures | Excluding the Impact of Divestitures | ||||||||||||||||||
Net Sales: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 596.8 | $ | — | $ | 596.8 | $ | 1,721.3 | $ | 42.1 | $ | 1,679.2 | |||||||||||
Paper Packaging & Services | 172.5 | — | 172.5 | 498.1 | — | 498.1 | |||||||||||||||||
Flexible Products and Services | 69.9 | 1.5 | 68.4 | 219.0 | 6.5 | 212.5 | |||||||||||||||||
Land Management | 5.8 | — | 5.8 | 17.6 | — | 17.6 | |||||||||||||||||
Consolidated | $ | 845.0 | $ | 1.5 | $ | 843.5 | $ | 2,456.0 | $ | 48.6 | $ | 2,407.4 | |||||||||||
Gross Profit: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 131.8 | $ | — | $ | 131.8 | $ | 358.5 | $ | 3.3 | $ | 355.2 | |||||||||||
Paper Packaging & Services | 32.3 | — | 32.3 | 105.5 | — | 105.5 | |||||||||||||||||
Flexible Products and Services | 10.2 | 0.3 | 9.9 | 30.3 | 1.1 | 29.2 | |||||||||||||||||
Land Management | 2.2 | — | 2.2 | 7.2 | — | 7.2 | |||||||||||||||||
Consolidated | $ | 176.5 | $ | 0.3 | $ | 176.2 | $ | 501.5 | $ | 4.4 | $ | 497.1 | |||||||||||
Operating Profit (Loss): | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 56.7 | $ | (0.2 | ) | $ | 56.9 | $ | 113.4 | $ | (28.2 | ) | $ | 141.6 | |||||||||
Paper Packaging & Services | 19.1 | — | 19.1 | 64.4 | — | 64.4 | |||||||||||||||||
Flexible Products and Services | (5.9 | ) | 0.1 | (6.0 | ) | (11.9 | ) | 0.2 | (12.1 | ) | |||||||||||||
Land Management | 1.7 | — | 1.7 | 6.1 | — | 6.1 | |||||||||||||||||
Consolidated | $ | 71.6 | $ | (0.1 | ) | $ | 71.7 | $ | 172.0 | $ | (28.0 | ) | $ | 200.0 | |||||||||
Operating profit (loss) before special items14: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 63.5 | $ | — | $ | 63.5 | $ | 153.3 | $ | 0.1 | $ | 153.2 | |||||||||||
Paper Packaging & Services | 19.9 | — | 19.9 | 66.6 | — | 66.6 | |||||||||||||||||
Flexible Products and Services | (1.0 | ) | 0.1 | (1.1 | ) | (3.7 | ) | 0.2 | (3.9 | ) | |||||||||||||
Land Management | 1.5 | — | 1.5 | 5.1 | — | 5.1 | |||||||||||||||||
Consolidated | $ | 83.9 | $ | 0.1 | $ | 83.8 | $ | 221.3 | $ | 0.3 | $ | 221.0 |
Three months ended July 31, | Nine months ended July 31, | ||||||||||||||||||||||
2015 | Impact of Divestitures | Excluding The Impact of Divestitures | 2015 | Impact of Divestitures | Excluding The Impact of Divestitures | ||||||||||||||||||
Net Sales: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 669.0 | $ | 21.5 | $ | 647.5 | $ | 1,985.3 | $ | 108.4 | $ | 1,876.9 | |||||||||||
Paper Packaging & Services | 176.7 | — | 176.7 | 496.3 | — | 496.3 | |||||||||||||||||
Flexible Products and Services | 79.2 | 2.7 | 76.5 | 249.3 | 11.1 | 238.2 | |||||||||||||||||
Land Management | 5.1 | — | 5.1 | 17.3 | — | 17.3 | |||||||||||||||||
Consolidated | $ | 930.0 | $ | 24.2 | $ | 905.8 | $ | 2,748.2 | $ | 119.5 | $ | 2,628.7 | |||||||||||
Gross Profit: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 120.9 | $ | 1.1 | $ | 119.8 | $ | 351.2 | $ | 4.6 | $ | 346.6 | |||||||||||
Paper Packaging & Services | 35.1 | — | 35.1 | 117.0 | — | 117.0 | |||||||||||||||||
Flexible Products and Services | 8.9 | 0.5 | 8.4 | 26.8 | 1.8 | 25.0 | |||||||||||||||||
Land Management | 1.9 | — | 1.9 | 6.8 | — | 6.8 | |||||||||||||||||
Consolidated | $ | 166.8 | $ | 1.6 | $ | 165.2 | $ | 501.8 | $ | 6.4 | $ | 495.4 | |||||||||||
Operating Profit (Loss): | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 29.5 | $ | 0.1 | $ | 29.4 | $ | 75.5 | $ | (23.5 | ) | $ | 99.0 | ||||||||||
Paper Packaging & Services | 21.5 | — | 21.5 | 76.7 | — | 76.7 | |||||||||||||||||
Flexible Products and Services | (9.7 | ) | 0.1 | (9.8 | ) | (23.8 | ) | 0.4 | (24.2 | ) | |||||||||||||
Land Management | 2.9 | — | 2.9 | 32.3 | — | 32.3 | |||||||||||||||||
Consolidated | $ | 44.2 | $ | 0.2 | $ | 44.0 | $ | 160.7 | $ | (23.1 | ) | $ | 183.8 | ||||||||||
Operating profit (loss) before special items14: | |||||||||||||||||||||||
Rigid Industrial Packaging & Services | $ | 59.8 | $ | (0.4 | ) | $ | 60.2 | $ | 129.2 | $ | (4.1 | ) | $ | 133.3 | |||||||||
Paper Packaging & Services | 22.4 | — | 22.4 | 78.5 | — | 78.5 | |||||||||||||||||
Flexible Products and Services | (4.4 | ) | 0.1 | (4.5 | ) | (18.8 | ) | 0.4 | (19.2 | ) | |||||||||||||
Land Management | 1.5 | — | 1.5 | 5.3 | — | 5.3 | |||||||||||||||||
Consolidated | $ | 79.3 | $ | (0.3 | ) | $ | 79.6 | $ | 194.2 | $ | (3.7 | ) | $ | 197.9 |
14 | See table contained herein entitled GAAP to Non-GAAP Reconciliation Segment Operating Profit (Loss) Before Special Items for a reconciliation of each segment’s operating profit (loss) before special items. |
Three months ended July 31, | ||||||||||||||
2016 | 2015 | (Decrease) in Net Sales ($) | (Decrease) in Net Sales (%) | |||||||||||
Net Sales | $ | 845.0 | $ | 930.0 | $ | (85.0 | ) | (9.1 | )% | |||||
Impact of Divestitures | 1.5 | 24.2 | ||||||||||||
Net Sales excluding the impact of divestitures | $ | 843.5 | $ | 905.8 | ||||||||||
Currency Translation | (60.7 | ) | N/A | |||||||||||
Net Sales excluding the impact of divestitures and currency translation | $ | 904.2 | $ | 905.8 | $ | (1.6 | ) | (0.2 | )% |
Nine months ended July 31, | ||||||||||||||
2016 | 2015 | (Decrease) in Net Sales ($) | (Decrease) in Net Sales (%) | |||||||||||
Net Sales | $ | 2,456.0 | $ | 2,748.2 | $ | (292.2 | ) | (10.6 | )% | |||||
Impact of Divestitures | 48.6 | 119.5 | ||||||||||||
Net Sales excluding the impact of divestitures | $ | 2,407.4 | $ | 2,628.7 | ||||||||||
Currency Translation | (194.3 | ) | N/A | |||||||||||
Net Sales excluding the impact of divestitures and currency translation | $ | 2,601.7 | $ | 2,628.7 | $ | (27.0 | ) | (1.0 | )% |
Three months ended July 31, | ||||||||||||||
2016 | 2015 | Increase (Decrease) in Net Sales ($) | Increase (Decrease) in Net Sales (%) | |||||||||||
Net Sales | $ | 596.8 | $ | 669.0 | $ | (72.2 | ) | (10.8 | )% | |||||
Impact of Divestitures | — | 21.5 | ||||||||||||
Net Sales excluding the impact of divestitures | $ | 596.8 | $ | 647.5 | ||||||||||
Currency Translation | (59.0 | ) | N/A | |||||||||||
Net Sales excluding the impact of divestitures and currency translation | $ | 655.8 | $ | 647.5 | $ | 8.3 | 1.3 | % |
Nine months ended July 31, | ||||||||||||||
2016 | 2015 | (Decrease) in Net Sales ($) | (Decrease) in Net Sales (%) | |||||||||||
Net Sales | $ | 1,721.3 | $ | 1,985.3 | $ | (264.0 | ) | (13.3 | )% | |||||
Impact of Divestitures | 42.1 | 108.4 | ||||||||||||
Net Sales excluding the impact of divestitures | $ | 1,679.2 | $ | 1,876.9 | ||||||||||
Currency Translation | (183.7 | ) | N/A | |||||||||||
Net Sales excluding the impact of divestitures and currency translation | $ | 1,862.9 | $ | 1,876.9 | $ | (14.0 | ) | (0.7 | )% |
• | First, we are building engaged teams that are aligned to – and accountable for – value delivery. |
• | Second, we are focused on delivering exceptional customer service in every single market we operate in. This higher level of service will translate to greater customer loyalty and profitable growth. |
• | Third, we are transforming our performance by: |
◦ | Optimizing and strengthening our portfolio to unlock additional value; |
◦ | Expanding our margins through disciplined operational execution; and, |
◦ | Expecting and achieving a higher level of fiscal discipline from the entire enterprise. |
• | Our consolidated gross profit ratio expanded to 20.9 percent – our best margin in more than five years. This represents a 200 basis point improvement versus the prior year quarter. We have now delivered gross margins in excess of 20 percent over the last two quarters – evidence that our emphasis on execution discipline and improving operating fundamentals is taking hold. Our Rigid Industrial Packaging and Services and Flexible Products and Services segments each recorded margins better than the year ago, and also sequentially improved versus the second quarter of 2016. |
• | Gross profit margin expansion – coupled with a reduction in SG&A expense – helped our operating profit before special items grow by 6 percent. |
• | Finally, our free cash flow grew by 20 percent year-over-year, and now stands $100 million dollars higher year to date than the same period a year ago. This is a result of better operating performance, more disciplined capital allocation and improved working capital efficiencies. |
• | FPS’ gross profit improved on both an absolute and percentage basis versus the year ago quarter, thanks to reduced fixed costs, greater labor efficiencies and price product mix management activities; |
• | We also have our underperforming operations tracking on schedule per their performance plans. |