Commodities: Press Release: Greif Reports Fiscal 2017 and Fourth Quarter Results

Press Release: Greif Reports Fiscal 2017 and Fourth Quarter Results

Greif Reports Fiscal 2017 and Fourth Quarter Results

DELAWARE, Ohio--(BUSINESS WIRE)--December 06, 2017-- 
 

Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, today announced fiscal 2017 and fourth quarter results.

Fiscal Year Highlights Include (all results compared to the fiscal year 2016 unless otherwise noted):

   -- Net sales increased by $314.6 million to $3,638.2 million. 
 
   -- Gross profit increased by $29.8 million to $714.7 million. 
 
   -- Operating profit increased by $46.8 million to $272.4 million, and 
      operating profit before special items1 increased by $26.7 million to 
      $335.0 million. Operating profit before special items was negatively 
      impacted by $5.3 million associated with adverse weather events and $4.6 
      million of professional advisory fees related to planning and execution 
      of tax strategies not contemplated in our original guidance, which 
      resulted in significant tax risk mitigation and tax savings. 
 
   -- Income tax expense increased by $0.7 million to $67.2 million, but our 
      effective tax rate decreased from 47.1 percent to 33.5 percent despite 
      the fiscal 2016 one time tax benefit achieved during Q3 2016. 
 
   -- Net income of $118.6 million or $2.02 per diluted Class A share compared 
      to net income of $74.9 million or $1.28 per diluted Class A share. Net 
      income, excluding the impact of special items, of $173.1 million or $2.95 
      per diluted Class A share compared to net income, excluding the impact of 
      special items, of $143.5 million or $2.44 per diluted Class A share. 
 
   -- Cash provided by operating activities increased by $4.0 million to $305.0 
      million. Free cash flow2 increased by $7.3 to $208.2 million. 
 

“We continued to make Greif a stronger and more profitable business in 2017, with solid earnings and cash generation,” said Pete Watson, Greif’s President and Chief Executive Officer. “Fiscal Year 2017 Class A earnings per share before special items rose by roughly 21 percent year over year; we generated more than $200 million in Free Cash Flow and returned nearly $100 million to shareholders. Our focus on customer service excellence continues to strengthen and we are driving a continuous improvement mindset to create stronger sustainable performance. Our plans for Fiscal 2018 and beyond remain focused on our teams being accountable to execute on our commitments and to deliver superior value to our customers and shareholders.”

Fourth Quarter Highlights Include (all results compared to the fourth quarter 2016 unless otherwise noted):

   -- Net sales increased by $100.5 million to $968.1 million. 
 
   -- Gross profit decreased by $1.0 million to $182.4 million primarily 
      related to adverse weather events. 
 
   -- Operating profit increased by $6.8 million to $60.4 million and operating 
      profit before special items increased by $1.9 million to $88.9 million. 
 
   -- Income tax expense decreased by $23.1 million to $5.2 million. 
 
   -- Net income of $33.3 million or $0.57 per diluted Class A share compared 
      to net income of $8.5 million or $0.14 per diluted Class A share. Net 
      income, excluding the impact of special items, of $57.8 million or $0.98 
      per diluted Class A share compared to net income, excluding the impact of 
      special items, of $38.5 million or $0.65 per diluted Class A share. 
 
   -- Cash provided by operating activities increased by $56.9 million to 
      $199.9 million. Free cash flow increased by $53.9 million to $168.2 
      million. 
 
(1)    A summary of all special items that are excluded from operating profit 
       before special items, from net income before special items, and from 
       earnings per diluted Class A share before special items is set forth in 
       the Selected Financial Highlights table following the Dividend Summary 
       in this release. 
(2)    Free cash flow is defined as net cash provided by operating activities 
       less cash paid for purchases of properties, plants and equipment. 
 
 

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.

Notable Business Highlights

Our three strategic priorities are:

1. Invest in our people and teams to foster a strong culture of employee engagement and accountability.

2. Deliver industry leading customer service excellence to achieve superior customer satisfaction and loyalty.

3. Strive for and realize performance excellence, leading to enhanced free cash flow and value creation.

Our goal is to be the best performing customer service company in industrial packaging in the world. We measure and track our customer performance through two metrics: the customer satisfaction index (CSI); and Net Promoter Score (NPS). NPS measures how likely a customer is to recommend Greif as a business partner.

Our consolidated CSI tracks a variety of internal metrics designed to enhance the customer experience in dealing with Greif. Our CSI improved by roughly 2% versus the prior year quarter, with the biggest improvement recorded in the Flexible Products & Services (FPS) segment, which generated a 17% improvement versus the prior year quarter. Our expectation is that each business segment deliver CSI at a 95 score or better. Our Paper Packaging & Services (PPS) segment has consistently performed at that level for many years. Our Rigid Industrial Packaging and Services (RIPS) and FPS segments are nearing that threshold.

We are finalizing the most recent NPS survey results, which will be shared as part of our first quarter 2018 earnings release. The NPS survey being finalized will be our fifth conducted since the beginning of the Transformation initiative.

From an operational standpoint, the business delivered a solid quarter despite weather related headwinds. Our third quarter earnings call was several days after Hurricane Harvey made landfall and at that time, we had estimated a $2.5 million adverse weather impact; in actuality, the impact was $5.3 million. RIPS – our largest business segment by revenue and operating profit – bore the brunt of these headwinds, but still generated higher year-over-year sales. RIPS gross profit margin was impacted by roughly $4 million related to Hurricane Harvey, rising raw material prices and the timing of contractual pass through mechanisms that will recover in the coming quarters. PPS – which consists of two paper mills and one of the newest corrugator networks in the containerboard industry – delivered strong volumes, higher specialty sales and realized previous containerboard price increases, which all helped to offset the impact of year-over-year old corrugated container inflation. FPS – the world’s largest producer of industrial flexible intermediate bulk containers – continues to demonstrate improvement, but was impacted by a $2.7 million expense during the quarter related to legacy claims.

Fourth quarter Class A earnings per share before special items was $0.98 per share versus $0.65 per share in the prior year quarter. Earnings benefited from higher year over year sales, lower SG&A expense, lower interest expense and a significantly reduced tax rate versus the prior year quarter. For fiscal 2017, we delivered Class A earnings per share before special items of $2.95 per share, which is at the high end our guidance range. Fiscal 2017 earnings benefited from a significant reduction in the company’s anticipated annual tax expense in the fourth quarter as a result of a reduction in anticipated pretax income, the realization of tax benefits from global tax initiatives in fiscal 2017, and certain one-time tax benefits realized in the fourth quarter of 2017. Fiscal 2017 Free Cash Flow totaled $208.2 million which exceeded our guidance. Fiscal 2018 guidance is included in this press release.

The end of Fiscal 2017 concludes our three year Transformation initiative. That initiative helped to refocus Greif on the importance of customer service excellence and re-oriented our business strategy towards delivering value improvements over purely volume gains. We have emerged from the Transformation with a stronger portfolio, one that is optimized for future growth if opportunities arise that generate appropriate returns. While the Transformation may have officially concluded, optimization activities identified during the initiative will continue into 2018. Furthermore, the financial discipline underlying our Transformation will continue and full year benefits of fiscal 2017 initiatives will be realized in 2018.

Company Outlook

Highlights of fiscal 2018 guidance are set forth below.

 
     Class A Earnings Per Share before         $3.25 - $3.55 
     Special Items 
     Free Cash Flow                            $200.0 million - $220.0 million 
 
 

Press Release: Greif Reports Fiscal 2017 and -2-

Note: 2018 Class A Earnings per Share guidance is not provided in this release due to the potential for one or more of the following, the timing and magnitude of which we are unable to reliably forecast: gains or losses on the disposal of businesses, timberland or properties, plants and equipment, net, non-cash asset impairment charges due to unanticipated changes in the business, restructuring-related activities, non-cash pension settlement charges or acquisition costs, and the income tax effects of these items and other income tax-related events. No reconciliation of the fiscal year 2018 Class A earnings per share guidance, a non-GAAP financial measure which excludes gains and losses on the disposal of businesses, timberland and properties, plants and equipment, non-cash pension settlement charges, acquisition costs and restructuring and impairment charges is included in this release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts. A reconciliation of 2018 free cash flow guidance to forecasted net cash provided by operating activities, the most directly comparable GAAP financial measure, is included in this release.

Segment Results (all results compared to the fourth quarter of 2017 unless otherwise noted)

Net sales are impacted mainly by the volume of primary products(3) sold, selling prices, product mix and the impact of changes in foreign currencies against the U.S. Dollar. The tables below show the percentage impact of each of these items on net sales for our primary products, both including and excluding the impact of divestitures, for the fourth quarter of 2017 as compared to the fourth quarter of 2016 for the business segments with manufacturing operations:

 
Net Sales             Rigid 
Impact -           Industrial         Paper          Flexible 
Primary            Packaging &     Packaging &      Products & 
Products            Services         Services        Services 
--------------   ---------------  --------------  -------------- 
                        %               %               % 
                 ---------------  --------------  -------------- 
Currency 
 Translation          1.8%             --             3.7% 
Volume                1.5%            6.0%           (4.7)% 
Selling Prices 
 and Product 
 Mix                 11.0%           12.0%            2.7% 
                 --------   ----  -------   ----  ------- ---- 
Total Impact of 
 Primary 
 Products            14.3%           18.0%            1.7% 
                 --------   ----  -------   ----  ------- ---- 
 
Net Sales 
Impact - 
Primary               Rigid 
Products,          Industrial         Paper          Flexible 
Excluding          Packaging &     Packaging &      Products & 
Divestitures:       Services         Services        Services 
--------------   ---------------  --------------  -------------- 
                        %               %               % 
                 ---------------  --------------  -------------- 
Currency 
 Translation          1.8%             --             3.7% 
Volume                1.5%            6.0%           (4.7)% 
Selling Prices 
 and Product 
 Mix                 11.1%           12.0%            2.7% 
                 --------   ----  -------   ----  ------- ---- 
Total Impact of 
 Primary 
 Products            14.4%           18.0%            1.7% 
                 --------   ----  -------   ----  ------- ---- 
 
 

(3) Primary products are manufactured steel, plastic and fibre drums; intermediate bulk containers; linerboard, medium, corrugated sheets and corrugated containers; and 1&2 loop and 4 loop flexible intermediate bulk containers.

Rigid Industrial Packaging & Services

Net sales increased by $59.6 million to $662.5 million. Divestitures negatively impacted net sales by $2.5 million and foreign currency translation benefited net sales by $9.8 million. Net sales excluding divestitures and foreign currency translation increased by $52.3 million due primarily to a 11.1 percent increase in selling prices and product mix on our primary products stemming from strategic pricing decisions and increases in index prices.

Gross profit decreased by $12.0 million to $118.9 million due to raw material price increases and a $4.4 million impact from adverse weather events.

Operating profit decreased by $6.0 million to $24.5 million. Operating profit before special items decreased by $7.9 million to $52.5 million, due primarily to the same factors that impacted gross profit, offset by a reduction in this segment’s selling, general and administrative expenses.

Paper Packaging & Services

Net sales increased by $34.0 million to $223.0 million. The increase was due primarily to an increase in volumes in our mills and CorrChoice sheet feeder network and increased sales of specialty products.

Gross profit increased by $10.0 million to $49.0 million primarily due to the same factors that impacted net sales, partially offset by a $0.5 million impact from adverse weather events and higher year over year raw material costs.

Operating profit increased by $9.0 million to $33.7 million primarily due to the same factors that impacted gross profit.

Flexible Products & Services

Net sales increased by $7.1 million to $76.2 million due primarily to strategic pricing decisions.

Gross profit increased by $0.3 million to $12.0 million due primarily to the same factors that impacted net sales above, offset by increased reserves for legacy claims.

Operating profit increased by $3.9 million to $0.3 million. Operating profit before special items increased by $0.5 million to $0.6 million primarily due to the same factors that impacted gross profit.

Land Management

Net sales decreased by $0.2 million to $6.4 million primarily due to a decrease in timber sales and a $0.4 million impact from adverse weather events.

Operating profit decreased by $0.1 million to $1.9 million. Operating profit before special items increased by $0.4 million to $1.8 million primarily due to the same factors that impacted net sales offset by a reduction in transportation costs.

Dividend Summary

On December 5, 2017, the Board of Directors declared quarterly cash dividends of $0.42 per share of Class A Common Stock and $0.62 per share of Class B Common Stock. Dividends are payable on January 1, 2018, to stockholders of record at the close of business on December 18, 2017.

 
 
                     GREIF, INC. AND SUBSIDIARY COMPANIES 
                         SELECTED FINANCIAL HIGHLIGHTS 
                                   UNAUDITED 
 
                          Three months ended       Twelve months ended October 
                              October 31,                      31, 
                       -------------------------  ----------------------------- 
(in millions, except 
for per share 
amounts)                   2017         2016           2017           2016 
--------------------   ------------  -----------  --------------  ------------- 
Selected Financial 
Highlights 
-------------------- 
Net sales              $968.1        $867.6       $3,638.2        $3,323.6 
Gross profit            182.4         183.4          714.7           684.9 
Gross profit margin      18.8%         21.1%          19.6%           20.6% 
Operating profit         60.4          53.6          272.4           225.6 
Operating profit 
 before special 
 items                   88.9          87.0          335.0           308.3 
EBITDA                   89.4          83.9          382.9           345.1 
EBITDA before special 
 items                  117.9         117.3          445.5           427.8 
Cash provided by 
 operating 
 activities             199.9         143.0          305.0           301.0 
Free cash flow          168.2         114.3          208.2           200.9 
Net income 
 attributable to 
 Greif, Inc.             33.3           8.5          118.6            74.9 
Diluted Class A 
 earnings per share 
 attributable to 
 Greif, Inc.           $ 0.57        $ 0.14       $   2.02        $   1.28 
Diluted Class A 
 earnings per share 
 attributable to 
 Greif, Inc. before 
 special items         $ 0.98        $ 0.65       $   2.95        $   2.44 
Special items 
--------------------- 
Restructuring charges  $  4.0        $  9.0       $   12.7        $   26.9 
Acquisition-related 
 costs                    0.7           0.1            0.7             0.2 
Non-cash asset 
 impairment charges      14.9           6.5           20.8            51.4 
Non-cash pension 
 settlement charge        1.5            --           27.1              -- 
Loss on disposal of 
 properties, plants 
 and equipment and 
 businesses, net          7.4          17.8            1.3             4.2 
                       ------  ----  ------  ---  --------  ----  --------  --- 
   Total special 
    items              $ 28.5        $ 33.4       $   62.6        $   82.7 
                        =====  ====   =====  ===   =======  ====   =======  === 
   Total special 
    items, net of tax 
    and 
    noncontrolling 
    interest             24.5          30.0           54.5            68.6 
                       ======  ====  ======  ===  ========  ====  ========  === 
   Impact of total 
    special items, 
    net of tax, on 
    diluted Class A 
    earnings per 
    share 
    attributable to 
    Greif, Inc.        $ 0.41        $ 0.51       $   0.93        $   1.16 
                        =====  ====   =====  ===   =======  ====   =======  === 
                       October 31,   October 31, 
                           2017         2016 
Operating working 
 capital(4)            $327.3        $304.6 
 
 

(4) Operating working capital is defined as trade accounts receivable plus inventories less accounts payable.

Conference Call

Press Release: Greif Reports Fiscal 2017 and -3-

The Company will host a conference call to discuss the fourth quarter of 2017 results on December 7, 2017, at 8:30 a.m. Eastern Time (ET). To participate, domestic callers should call (833) 231-8265. The Greif ID is 9388796. The number for international callers is +1-(647) 689-4110. Phone lines will open at 8:00 a.m. ET. The conference call will also be available through a live webcast, including slides, which can be accessed at http://investor.greif.com by clicking on the Events and Presentations tab and searching under the events calendar. A replay of the conference call will be available on the Company’s website approximately two hours following the call.

About Greif

Greif is a global leader in industrial packaging products and services and is pursuing its vision to become the world’s best performing customer service company in industrial packaging. The Company produces steel, plastic, fibre, flexible, corrugated, and reconditioned containers, intermediate bulk containers, containerboard and packaging accessories, and provides filling, packaging and industrial packaging reconditioning services for a wide range of industries. Greif also manages timber properties in the southeastern United States. The Company is strategically positioned with production facilities in over 45 countries to serve global as well as regional customers. Additional information is on the Company’s website at www.greif.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to management. Such forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from those forecasted, projected or anticipated, whether expressed or implied. The most significant of these risks and uncertainties are described in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017. The Company undertakes no obligation to update or revise any forward-looking statements.

Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis, the Company can give no assurance that these expectations will prove to be correct. Forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those forecasted, projected or anticipated, whether expressed in or implied by the statements. Such risks and uncertainties that might cause a difference include, but are not limited to, the following: (i) historically, our business has been sensitive to changes in general economic or business conditions, (ii) we may not successfully implement our business strategies, including achieving our transformation and growth objectives, (iii) our operations subject us to currency exchange and political risks that could adversely affect our results of operations, (iv) the current and future challenging global economy and disruption and volatility of the financial and credit markets may adversely affect our business, (v) the continuing consolidation of our customer base and suppliers may intensify pricing pressure, (vi) we operate in highly competitive industries, (vii) our business is sensitive to changes in industry demands, (viii) raw material and energy price fluctuations and shortages may adversely impact our manufacturing operations and costs, (ix) geopolitical conditions, including direct or indirect acts of war or terrorism, could have a material adverse effect on our operations and financial results, (x) we may encounter difficulties arising from acquisitions, (xi) in connection with acquisitions or divestitures, we may become subject to liabilities, (xii) we may incur additional restructuring costs and there is no guarantee that our efforts to reduce costs will be successful, (xiii) tax legislation initiatives or challenges to our tax positions may adversely impact our results or condition, (xiv) full realization of our deferred tax assets may be affected by a number of factors, (xv) several operations are conducted by joint ventures that we cannot operate solely for our benefit, (xvi) certain of the agreements that govern our joint ventures provide our partners with put or call options, (xvii) our ability to attract, develop and retain talented and qualified employees, managers and executives is critical to our success, (xviii) our business may be adversely impacted by work stoppages and other labor relations matters, (xix) we may not successfully identify illegal immigrants in our workforce, (xx) our pension and postretirement plans are underfunded and will require future cash contributions and our required future cash contributions could be higher than we expect, each of which could have a material adverse effect on our financial condition and liquidity, (xxi) we may be subject to losses that might not be covered in whole or in part by existing insurance reserves or insurance coverage, (xxii) our business depends on the uninterrupted operations of our facilities, systems and business functions, including our information technology (IT) and other business systems, (xxiii) a security breach of customer, employee, supplier or Company information may have a material adverse effect on our business, financial condition and results of operations, (xxiv) legislation/regulation related to environmental and health and safety matters and corporate social responsibility could negatively impact our operations and financial performance, (xxv) product liability claims and other legal proceedings could adversely affect our operations and financial performance, (xxvi) we may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate, or are alleged to have violated, anti-bribery, competition or other laws, (xxvii) changing climate, climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance, (xxviii) the frequency and volume of our timber and timberland sales will impact our financial performance, (xxix) changes in U.S. generally accepted accounting principles (U.S. GAAP) and SEC rules and regulations could materially impact our reported results, (xxx) if the Company fails to maintain an effective system of internal control, the Company may not be able to accurately report financial results or prevent fraud, and (xxxi) the Company has a significant amount of goodwill and long-lived assets which, if impaired in the future, would adversely impact our results of operations. The risks described above are not all-inclusive, and given these and other possible risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. For a detailed discussion of the most significant risks and uncertainties that could cause our actual results to differ materially from those forecasted, projected or anticipated, see “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K and our other filings with the Securities and Exchange Commission. All forward-looking statements made in this news release are expressly qualified in their entirety by reference to such risk factors. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 
 
                 GREIF, INC. AND SUBSIDIARY COMPANIES 
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
                              UNAUDITED 
 
                       Three months ended       Twelve months ended 
                          October 31,               October 31, 
                     ----------------------  ------------------------- 
(in millions, 
except per share 
amounts)                2017        2016         2017         2016 
------------------   ----------  ----------  ------------  ----------- 
Net sales            $968.1      $867.6      $3,638.2      $3,323.6 
Cost of products 
 sold                 785.7       684.2       2,923.5       2,638.7 
                     ------      ------      --------      -------- 
   Gross profit       182.4       183.4         714.7         684.9 
Selling, general 
 and administrative 
 expenses              94.2        96.5         380.4         376.8 
Restructuring 
 charges                4.0         9.0          12.7          26.9 
Non-cash asset 
 impairment 
 charges               14.9         6.5          20.8          51.4 
Non-cash pension 
 settlement charge      1.5          --          27.1            -- 
(Gain) loss on 
 disposal of 
 properties, plants 
 and equipment, 
 net                    3.5        (0.8)         (0.4)        (10.3) 
Loss on disposal of 
 businesses, net        3.9        18.6           1.7          14.5 
                     ------      ------      --------      -------- 
   Operating profit    60.4        53.6         272.4         225.6 
Interest expense, 
 net                   13.4        17.2          60.1          75.4 
Other expense, net      3.8         1.6          12.0           9.0 
                     ------      ------      --------      -------- 
   Income before 
    income tax 
    expense and 
    equity earnings 
    of 
    unconsolidated 
    affiliates, 
    net                43.2        34.8         200.3         141.2 
Income tax expense      5.2        28.3          67.2          66.5 
Equity earnings of 
 unconsolidated 
 affiliates, net of 
 tax                   (1.7)         --          (2.0)         (0.8) 
                     ------      ------      --------      -------- 
 

Press Release: Greif Reports Fiscal 2017 and -4-

   Net income          39.7         6.5         135.1          75.5 
Net (income) loss 
 attributable to 
 noncontrolling 
 interests             (6.4)        2.0         (16.5)         (0.6) 
                     ------      ------      --------      -------- 
   Net income 
    attributable to 
    Greif, Inc.      $ 33.3      $  8.5      $  118.6      $   74.9 
                      =====       =====       =======       ======= 
Basic earnings per 
 share attributable 
 to Greif, Inc. 
 common 
 shareholders: 
Class A Common 
 Stock               $ 0.57      $ 0.14      $   2.02      $   1.28 
Class B Common 
 Stock               $ 0.85      $ 0.22      $   3.02      $   1.90 
Diluted earnings 
 per share 
 attributable to 
 Greif, Inc. common 
 shareholders: 
Class A Common 
 Stock               $ 0.57      $ 0.14      $   2.02      $   1.28 
Class B Common 
 Stock               $ 0.85      $ 0.22      $   3.02      $   1.90 
Shares used to 
 calculate basic 
 earnings per share 
 attributable to 
 Greif, Inc. common 
 shareholders: 
Class A Common 
 Stock                 25.8        25.8          25.8          25.8 
Class B Common 
 Stock                 22.0        22.0          22.0          22.1 
Shares used to 
 calculate diluted 
 earnings per share 
 attributable to 
 Greif, Inc. common 
 shareholders: 
Class A Common 
 Stock                 25.8        25.8          25.8          25.8 
Class B Common 
 Stock                 22.0        22.0          22.0          22.1 
-------------------  ------      ------      --------      -------- 
 
 
 
 
                  GREIF, INC. AND SUBSIDIARY COMPANIES 
                 CONDENSED CONSOLIDATED BALANCE SHEETS 
                               UNAUDITED 
 
(in millions)                      October 31, 2017    October 31, 2016 
-------------------------------   ------------------  ------------------ 
ASSETS 
CURRENT ASSETS 
Cash and cash equivalents          $           142.3   $           103.7 
Trade accounts receivable                      447.0               399.2 
Inventories                                    279.5               277.4 
Other current assets                           125.7               132.0 
                                  ------------------  ------------------ 
                                               994.5               912.3 
LONG-TERM ASSETS 
Goodwill                                       785.4               786.4 
Intangible assets                               98.0               110.6 
Assets held by special purpose 
 entities                                       50.9                50.9 
Other long-term assets                         115.1               120.9 
                                  ------------------  ------------------ 
                                             1,049.4             1,068.8 
                                  ------------------  ------------------ 
PROPERTIES, PLANTS AND EQUIPMENT             1,188.4             1,171.9 
                                  ------------------  ------------------ 
                                   $         3,232.3   $         3,153.0 
                                      ==============      ============== 
LIABILITIES AND EQUITY 
CURRENT LIABILITIES 
Accounts payable                   $           399.2   $           372.0 
Short-term borrowings                           14.5                51.6 
Current portion of long-term 
debt                                            15.0                  -- 
Other current liabilities                      259.2               235.6 
                                  ------------------  ------------------ 
                                               687.9               659.2 
                                  ------------------  ------------------ 
LONG-TERM LIABILITIES 
Long-term debt                                 937.8               974.6 
Liabilities held by special 
 purpose entities                               43.3                43.3 
Other long-term liabilities                    484.3               486.2 
                                  ------------------  ------------------ 
                                             1,465.4             1,504.1 
                                  ------------------  ------------------ 
REDEEMABLE NONCONTROLLING 
 INTERESTS                                      31.5                31.8 
                                  ------------------  ------------------ 
EQUITY 
                                  ------------------  ------------------ 
Total Greif, Inc. equity                     1,010.9               947.4 
                                  ------------------  ------------------ 
Noncontrolling interests                        36.6                10.5 
                                  ------------------  ------------------ 
                                             1,047.5               957.9 
                                  ------------------  ------------------ 
                                   $         3,232.3   $         3,153.0 
                                      ==============      ============== 
 
 
 
 
               GREIF, INC. AND SUBSIDIARY COMPANIES 
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                            UNAUDITED 
 
                      Three months ended     Twelve months ended 
                         October 31,             October 31, 
                    ----------------------  ---------------------- 
(in millions)          2017        2016        2017        2016 
-----------------   ----------  ----------  ----------  ---------- 
CASH FLOWS FROM 
OPERATING 
ACTIVITIES: 
Net income          $ 39.7      $  6.5      $135.1      $ 75.5 
Depreciation, 
 depletion and 
 amortization         31.1        31.9       120.5       127.7 
Asset impairments     14.9         6.5        20.8        51.4 
Pension settlement 
 loss                  1.5          --        27.1          -- 
Other non-cash 
 adjustments to 
 net income           16.1        30.7         6.2         9.8 
Operating working 
 capital changes      65.5        50.0       (30.6)       24.2 
Deferred purchase 
 price on sold 
 receivables          35.9        25.4         5.1         5.2 
Increase 
 (decrease) in 
 cash from changes 
 in other assets 
 and liabilities      (4.8)       (8.0)       20.8         7.2 
                    ------      ------      ------      ------ 
   Net cash 
    provided by 
    operating 
    activities       199.9       143.0       305.0       301.0 
                    ------      ------      ------      ------ 
CASH FLOWS FROM 
 INVESTING 
 ACTIVITIES: 
Acquisitions of 
 businesses, net 
 of cash acquired       --          --          --        (0.4) 
Collection of 
 subordinated note 
 receivable             --          --          --        44.2 
Purchases of 
 properties, 
 plants and 
 equipment           (31.7)      (28.7)      (96.8)     (100.1) 
Purchases of and 
 investments in 
 timber 
 properties           (2.2)       (2.4)       (9.5)       (7.1) 
Purchases of 
 properties, 
 plants and 
 equipment with 
 insurance 
 proceeds               --          --          --        (4.4) 
Proceeds from the 
 sale of 
 properties, 
 plants and 
 equipment, 
 businesses, 
 timberland and 
 other assets          1.7         1.4        15.5        36.1 
Proceeds on 
 insurance 
 recoveries             --          --         0.4         6.6 
                    ------      ------      ------      ------ 
   Net cash used 
    in investing 
    activities       (32.2)      (29.7)      (90.4)      (25.1) 
                    ------      ------      ------      ------ 
CASH FLOWS FROM 
 FINANCING 
 ACTIVITIES: 
Proceeds from 
 (payments on) 
 debt, net          (100.1)      (77.8)      (72.8)     (159.8) 
Dividends paid to 
 Greif, Inc. 
 shareholders        (24.7)      (24.7)      (98.6)      (98.7) 
Other                 (0.1)        0.9        (4.2)      (14.3) 
                    ------      ------      ------      ------ 
   Net cash used 
    in financing 
    activities      (124.9)     (101.6)     (175.6)     (272.8) 
                    ------      ------      ------      ------ 
Reclassification 
of cash to assets 
held for sale          5.5          --          --          -- 
Effects of 
 exchange rates on 
 cash                 (0.6)       (2.3)       (0.4)       (5.6) 
                    ------      ------      ------      ------ 
Net increase 
 (decrease) in 
 cash and cash 
 equivalents          47.7         9.4        38.6        (2.5) 
Cash and cash 
 equivalents, 
 beginning of 
 period               94.6        94.3       103.7       106.2 
                    ------      ------      ------      ------ 
Cash and cash 
 equivalents, end 
 of period          $142.3      $103.7      $142.3      $103.7 
                     =====       =====       =====       ===== 
 
 
 
 
            GREIF, INC. AND SUBSIDIARY COMPANIES 
              FINANCIAL HIGHLIGHTS BY SEGMENT 
                         UNAUDITED 
 
                   Three months ended   Twelve months ended 
                      October 31,           October 31, 
                   ------------------  --------------------- 
(in millions)       2017      2016       2017       2016 
----------------   ------  ----------  --------  ----------- 
Net sales: 
   Rigid 
    Industrial 
    Packaging & 
    Services       $662.5  $602.9      $2,522.7  $2,324.2 
   Paper 
    Packaging & 
    Services        223.0   189.0         800.9     687.1 
   Flexible 
    Products & 
    Services         76.2    69.1         286.4     288.1 
   Land 
    Management        6.4     6.6          28.2      24.2 
                   ------  ------      --------  -------- 
      Total net 
       sales       $968.1  $867.6      $3,638.2  $3,323.6 
                    -----   -----       -------   ------- 
Operating profit 
 (loss): 
   Rigid 
    Industrial 
    Packaging & 
    Services       $ 24.5  $ 30.5      $  173.4  $  143.9 
   Paper 
    Packaging & 
    Services         33.7    24.7          83.3      89.1 
   Flexible 
    Products & 
 

Press Release: Greif Reports Fiscal 2017 and -5-

    Services          0.3    (3.6)          5.7     (15.5) 
   Land 
    Management        1.9     2.0          10.0       8.1 
                   ------  ------      --------  -------- 
      Total 
       operating 
       profit      $ 60.4  $ 53.6      $  272.4  $  225.6 
                    -----   -----       -------   ------- 
EBITDA(5) : 
   Rigid 
    Industrial 
    Packaging & 
    Services       $ 43.4  $ 50.3      $  241.9  $  223.8 
   Paper 
    Packaging & 
    Services         41.9    32.7         115.3     120.7 
   Flexible 
    Products & 
    Services          1.4    (2.3)         11.1     (11.3) 
   Land 
    Management        2.7     3.2          14.6      11.9 
                   ------  ------      --------  -------- 
      Total 
       EBITDA      $ 89.4  $ 83.9      $  382.9  $  345.1 
                    -----   -----       -------   ------- 
EBITDA before 
 special items: 
   Rigid 
    Industrial 
    Packaging & 
    Services       $ 71.4  $ 80.2      $  294.9  $  293.6 
   Paper 
    Packaging & 
    Services         42.2    33.1         126.1     123.3 
   Flexible 
    Products & 
    Services          1.7     1.4          12.3       0.6 
   Land 
    Management        2.6     2.6          12.2      10.3 
                   ------  ------      --------  -------- 
      Total 
       EBITDA 
       before 
       special 
       items       $117.9  $117.3      $  445.5  $  427.8 
                    -----   -----       -------   ------- 
 
 

(5) 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.

 
 
            GREIF, INC. AND SUBSIDIARY COMPANIES 
         FINANCIAL HIGHLIGHTS BY GEOGRAPHIC REGION 
                         UNAUDITED 
 
                  Three months 
                 ended October   Twelve months ended October 
                      31,                    31, 
                 --------------  --------------------------- 
(in millions)     2017    2016      2017           2016 
--------------   ------  ------  -----------  -------------- 
Net sales: 
   United 
    States       $473.1  $431.8   $  1,779.3   $     1,610.8 
   Europe, 
    Middle East 
    and Africa    351.6   302.5      1,322.4         1,208.4 
   Asia Pacific 
    and other 
    Americas      143.4   133.3        536.5           504.4 
                 ------  ------  -----------  -------------- 
      Total net 
       sales     $968.1  $867.6   $  3,638.2   $     3,323.6 
                  -----   -----      -------      ---------- 
Gross profit: 
   United 
    States       $103.7  $100.0   $    380.8   $       360.1 
   Europe, 
    Middle East 
    and Africa     56.3    57.9        245.8           227.3 
   Asia Pacific 
    and other 
    Americas       22.4    25.5         88.1            97.5 
                 ------  ------  -----------  -------------- 
      Total 
       gross 
       profit    $182.4  $183.4   $    714.7   $       684.9 
                  -----   -----      -------      ---------- 
 
 
 
 
          GREIF, INC. AND SUBSIDIARY COMPANIES 
            GAAP TO NON-GAAP RECONCILIATION 
               OPERATING WORKING CAPITAL 
                       UNAUDITED 
 
(in millions)        October 31, 2017  October 31, 2016 
--------------       ----------------  ----------------- 
Trade accounts 
 receivable            $        447.0    $         399.2 
Plus: inventories               279.5              277.4 
Less: accounts 
 payable                        399.2              372.0 
                     ----------------  ----------------- 
   Operating 
    working 
    capital            $        327.3    $         304.6 
                     ===  ===========  ===  ============ 
 
 
 
 
             GREIF, INC. AND SUBSIDIARY COMPANIES 
               GAAP TO NON-GAAP RECONCILIATION 
                    CONSOLIDATED EBITDA(6) 
                          UNAUDITED 
 
                       Three months 
                       ended October     Twelve months ended 
                            31,              October 31, 
                     -----------------  ---------------------- 
(in millions)           2017     2016      2017        2016 
------------------   ----------  -----  ----------  ---------- 
Net income           $39.7       $ 6.5  $135.1      $ 75.5 
   Plus: Interest 
    expense, net      13.4        17.2    60.1        75.4 
   Plus: Income tax 
    expense            5.2        28.3    67.2        66.5 
   Plus: 
    Depreciation, 
    depletion and 
    amortization 
    expense           31.1        31.9   120.5       127.7 
                     -----  ---  -----  ------      ------ 
EBITDA               $89.4       $83.9  $382.9      $345.1 
                      ====  ===   ====   =====       ===== 
Net income           $39.7       $ 6.5  $135.1      $ 75.5 
   Plus: Interest 
    expense, net      13.4        17.2    60.1        75.4 
   Plus: Income tax 
    expense            5.2        28.3    67.2        66.5 
   Plus: Other 
    expense, net       3.8         1.6    12.0         9.0 
   Less: equity 
    earnings of 
    unconsolidated 
    affiliates, net 
    of tax            (1.7)         --    (2.0)       (0.8) 
                     -----       -----  ------      ------ 
Operating profit      60.4        53.6   272.4       225.6 
   Less: Other 
    expense, net       3.8         1.6    12.0         9.0 
   Less: equity 
    earnings of 
    unconsolidated 
    affiliates, net 
    of tax            (1.7)         --    (2.0)       (0.8) 
   Plus: 
    Depreciation, 
    depletion and 
    amortization 
    expense           31.1        31.9   120.5       127.7 
                     -----  ---  -----  ------      ------ 
EBITDA               $89.4       $83.9  $382.9      $345.1 
                      ====  ===   ====   =====       ===== 
 
 

(6) 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.

 
 
                  GREIF, INC. AND SUBSIDIARY COMPANIES 
                    GAAP TO NON-GAAP RECONCILIATION 
                           SEGMENT EBITDA(7) 
                               UNAUDITED 
 
                            Three months ended     Twelve months ended 
                               October 31,             October 31, 
                          ----------------------  ---------------------- 
(in millions)                2017        2016        2017        2016 
-----------------------   ----------  ----------  ----------  ---------- 
Rigid Industrial 
Packaging & Services 
Operating profit          $ 24.5      $ 30.5      $173.4      $143.9 
   Less: other expense, 
    net                      3.1         1.1        10.5         5.5 
   Less: equity earnings 
    of unconsolidated 
    affiliates, net of 
    tax                     (1.7)         --        (2.0)       (0.8) 
   Plus: depreciation 
    and amortization 
    expense                 20.3        20.9        77.0        84.6 
                          ------      ------      ------      ------ 
EBITDA                    $ 43.4      $ 50.3      $241.9      $223.8 
   Restructuring charges     3.6         7.8        11.2        19.0 
   Acquisition-related 
    costs                    0.5         0.1         0.5         0.2 
   Non-cash asset 
    impairment charges      14.9         3.5        20.5        43.3 
   Non-cash pension 
    settlement charge        1.4          --        16.7          -- 
   Loss on disposal of 
    properties, plants, 
    equipment, and 
    businesses, net          7.6        18.5         4.1         7.3 
                          ------      ------      ------      ------ 
EBITDA before special 
 items                    $ 71.4      $ 80.2      $294.9      $293.6 
                           -----       -----       -----       ----- 
Paper Packaging & 
 Services 
Operating profit          $ 33.7      $ 24.7      $ 83.3      $ 89.1 
   Less: other income, 
    net                       --          --        (0.1)         -- 
   Plus: depreciation 
    and amortization 
    expense                  8.2         8.0        31.9        31.6 
                          ------      ------      ------      ------ 
EBITDA                    $ 41.9      $ 32.7      $115.3      $120.7 
   Restructuring charges      --         0.4         0.3         1.5 
   Acquisition-related 
    costs                    0.2          --         0.2          -- 
   Non-cash asset 
    impairment charges        --          --          --         1.5 
   Non-cash pension 
    settlement charge        0.1          --        10.2          -- 
   (Gain) loss on 
    disposal of 
    properties, plants, 
    equipment, net            --          --         0.1        (0.4) 
                          ------      ------      ------      ------ 
EBITDA before special 
 items                    $ 42.2      $ 33.1      $126.1      $123.3 
                           -----       -----       -----       ----- 
Flexible Products & 
 Services 
Operating profit (loss)   $  0.3      $ (3.6)     $  5.7      $(15.5) 
   Less: other expense, 
    net                      0.7         0.5         1.6         3.5 
   Plus: depreciation 
    and amortization 
    expense                  1.8         1.8         7.0         7.7 
                          ------      ------      ------      ------ 
EBITDA                    $  1.4      $ (2.3)     $ 11.1      $(11.3) 
   Restructuring charges     0.4         0.7         1.2         6.3 
   Non-cash asset 
    impairment charges        --         3.0         0.3         6.6 
   Non-cash pension 
 

Press Release: Greif Reports Fiscal 2017 and -6-

   settlement charge          --          --         0.1          -- 
   Gain on disposal of 
    properties, plants, 
    equipment and 
    businesses, net         (0.1)         --        (0.4)       (1.0) 
                          ------      ------      ------      ------ 
EBITDA before special 
 items                    $  1.7      $  1.4      $ 12.3      $  0.6 
                           -----       -----       -----       ----- 
Land Management 
Operating profit          $  1.9      $  2.0      $ 10.0      $  8.1 
   Plus: depreciation, 
    depletion and 
    amortization 
    expense                  0.8         1.2         4.6         3.8 
                          ------      ------      ------      ------ 
EBITDA                    $  2.7      $  3.2      $ 14.6      $ 11.9 
   Restructuring charges      --         0.1          --         0.1 
   Non-cash pension 
   settlement charge          --          --         0.1          -- 
   Gain on disposal of 
    properties, plants, 
    equipment, net          (0.1)       (0.7)       (2.5)       (1.7) 
                          ------      ------      ------      ------ 
EBITDA before special 
 items                    $  2.6      $  2.6      $ 12.2      $ 10.3 
                           -----       -----       -----       ----- 
Consolidated EBITDA       $ 89.4      $ 83.9      $382.9      $345.1 
                           -----       -----       -----       ----- 
Consolidated EBITDA 
 before special items     $117.9      $117.3      $445.5      $427.8 
                           -----       -----       -----       ----- 
 
 

(7) 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.

 
 
              GREIF, INC. AND SUBSIDIARY COMPANIES 
                GAAP TO NON-GAAP RECONCILIATION 
                       FREE CASH FLOW(8) 
                           UNAUDITED 
 
                    Three months ended     Twelve months ended 
                       October 31,             October 31, 
                  ----------------------  ---------------------- 
(in millions)        2017        2016        2017        2016 
---------------   ----------  ----------  ----------  ---------- 
Net cash 
 provided by 
 operating 
 activities       $199.9      $143.0      $305.0      $301.0 
   Cash paid for 
    purchases of 
    properties, 
    plants and 
    equipment      (31.7)      (28.7)      (96.8)     (100.1) 
                  ------      ------      ------      ------ 
Free Cash Flow    $168.2      $114.3      $208.2      $200.9 
----------------   -----       -----       -----       ----- 
 
 
 
 
                GREIF, INC. AND SUBSIDIARY COMPANIES 
               PROJECTED 2018 GUIDANCE RECONCILIATION 
                           FREE CASH FLOW 
                             UNAUDITED 
 
                                    Fiscal 2018 Forecast Range 
                               ------------------------------------- 
(in millions)                       Scenario 1          Scenario 2 
-------------------------      ---------------------  -------------- 
Net cash provided by 
 operating activities             $        300.0       $    340.0 
   Cash paid for purchases of 
    properties, plants and 
    equipment                             (100.0)          (120.0) 
                               -----------------      ----------- 
Free Cash Flow                    $        200.0       $    220.0 
-----------------------------  ----  -----------          ------- 
 
 
 

(8) Free Cash Flow is defined as net cash provided by operating activities less cash paid for purchases of properties, plants and equipment.

 
 
 
                  GREIF, INC. AND SUBSIDIARY COMPANIES 
                     GAAP TO NON-GAAP RECONCILIATION 
         SEGMENT OPERATING PROFIT (LOSS) BEFORE SPECIAL ITEMS(9) 
                                UNAUDITED 
 
                              Three months ended    Twelve months ended 
                                 October 31,            October 31, 
                             --------------------  ---------------------- 
(in millions)                  2017       2016        2017        2016 
--------------------------   ---------  ---------  ----------  ---------- 
Operating profit (loss): 
   Rigid Industrial 
    Packaging & Services     $24.5      $30.5      $173.4      $143.9 
   Paper Packaging & 
    Services                  33.7       24.7        83.3        89.1 
   Flexible Products & 
    Services                   0.3       (3.6)        5.7       (15.5) 
   Land Management             1.9        2.0        10.0         8.1 
                             -----      -----      ------      ------ 
      Total operating 
       profit                $60.4      $53.6      $272.4      $225.6 
                              ----       ----       -----       ----- 
Restructuring charges: 
   Rigid Industrial 
    Packaging & Services     $ 3.6      $ 7.8      $ 11.2      $ 19.0 
   Paper Packaging & 
    Services                    --        0.4         0.3         1.5 
   Flexible Products & 
    Services                   0.4        0.7         1.2         6.3 
   Land Management              --        0.1          --         0.1 
                             -----      -----      ------      ------ 
      Total restructuring 
       charges               $ 4.0      $ 9.0      $ 12.7      $ 26.9 
                              ----       ----       -----       ----- 
Acquisition-related costs: 
   Rigid Industrial 
    Packaging & Services     $ 0.5      $ 0.1      $  0.5      $  0.2 
   Paper Packaging & 
    Services                   0.2         --         0.2          -- 
                             -----      -----      ------      ------ 
      Total 
       acquisition-related 
       costs                 $ 0.7      $ 0.1      $  0.7      $  0.2 
                              ----       ----       -----       ----- 
Non-cash asset impairment 
 charges: 
   Rigid Industrial 
    Packaging & Services     $14.9      $ 3.5      $ 20.5      $ 43.3 
   Paper Packaging & 
    Services                    --         --          --         1.5 
   Flexible Products & 
    Services                    --        3.0         0.3         6.6 
                             -----      -----      ------      ------ 
      Total non-cash asset 
       impairment charges    $14.9      $ 6.5      $ 20.8      $ 51.4 
                              ----       ----       -----       ----- 
Non-cash pension settlement 
 charge: 
   Rigid Industrial 
    Packaging & Services     $ 1.4      $  --      $ 16.7      $   -- 
   Paper Packaging & 
    Services                   0.1         --        10.2          -- 
   Flexible Products & 
   Services                     --         --         0.1          -- 
   Land Management              --         --         0.1          -- 
                             -----      -----      ------      ------ 
      Total non-cash 
       pension settlement 
       charge                $ 1.5      $  --      $ 27.1      $   -- 
                              ----       ----       -----       ----- 
(Gain) loss on disposal of 
 properties, plants, 
 equipment and businesses, 
 net: 
   Rigid Industrial 
    Packaging & Services     $ 7.6      $18.5      $  4.1      $  7.3 
   Paper Packaging & 
    Services                    --         --         0.1        (0.4) 
   Flexible Products & 
    Services                  (0.1)        --        (0.4)       (1.0) 
   Land Management            (0.1)      (0.7)       (2.5)       (1.7) 
                             -----      -----      ------      ------ 
      Total loss on 
       disposal of 
       properties, plants, 
       equipment and 
       businesses, net       $ 7.4      $17.8      $  1.3      $  4.2 
                              ----       ----       -----       ----- 
Operating profit (loss) 
 before special items: 
   Rigid Industrial 
    Packaging & Services     $52.5      $60.4      $226.4      $213.7 
   Paper Packaging & 
    Services                  34.0       25.1        94.1        91.7 
   Flexible Products & 
    Services                   0.6        0.1         6.9        (3.6) 
   Land Management             1.8        1.4         7.6         6.5 
                             -----      -----      ------      ------ 
      Total operating 
       profit before 
       special items         $88.9      $87.0      $335.0      $308.3 
                              ====       ====       =====       ===== 
 
 

(9) Operating profit (loss) before special items is defined as operating profit (loss), plus restructuring charges, plus acquisition-related costs, plus non-cash pension settlement charge, plus non-cash impairment charges, less gain on disposal of properties, plants, equipment, net.

 
 
                                           GREIF, INC. AND SUBSIDIARY COMPANIES 
                                             GAAP TO NON-GAAP RECONCILIATION 
                              NET INCOME AND CLASS A EARNINGS PER SHARE BEFORE SPECIAL ITEMS 
                                                        UNAUDITED 
                                   (Dollars in millions, except for per share amounts) 
 
                         Income before 
                           Income Tax 
                          Expense and                        Equity 
                        Equity Earnings                                                                         Diluted 
                               of         Income Tax      earnings of           Non-           Net Income       Class A 
                         Unconsolidated     Expense      unconsolidated      Controlling      Attributable    Earnings Per 
 

Press Release: Greif Reports Fiscal 2017 and -7-

                        Affiliates, net    (Benefit)       affiliates         Interest       to Greif, Inc.      Share 
---------------------   ----------------  -----------  ------------------  ---------------  ----------------  ------------ 
Three months ended 
 October 31, 2017           $       43.2    $    5.2     $    (1.7)          $     6.4       $    33.3         $  0.57 
 Loss on disposal of 
  properties, plants, 
  equipment and 
  businesses, net                    7.4         1.5            --                (0.1)            6.0            0.10 
 Restructuring charges               4.0         0.1            --                 0.2             3.7            0.06 
 Non-cash asset 
  impairment charges                14.9         0.1            --                  --            14.8            0.25 
 Acquisition-related 
  costs                              0.7         0.2            --                  --             0.5            0.01 
 Non-cash pension 
  settlement charge                  1.5         2.0            --                  --            (0.5)          (0.01) 
                        ----------------  ----------   -----------  -----  -----------      ----------   ---  -------- 
 Excluding Special 
  Items                     $       71.7    $    9.1     $    (1.7)          $     6.5       $    57.8         $  0.98 
                        =====  =========  ===  =====   ===  ======   ====  ===  ======          ======  ====      ==== 
 
Three months ended 
 October 31, 2016           $       34.8    $   28.3     $      --           $    (2.0)      $     8.5         $  0.14 
 Loss on disposal of 
  properties, plants, 
  equipment and 
  businesses, net                   17.8         0.5            --                  --            17.3            0.29 
 Restructuring charges               9.0         1.3            --                 0.3             7.4            0.13 
 Non-cash asset 
  impairment charges                 6.5        (0.7)           --                 1.9             5.3            0.09 
 Acquisition-related 
  costs                              0.1         0.1            --                  --              --              -- 
                        ----------------  ----------   -----------  -----  -----------      ----------  ----  -------- 
 Excluding Special 
  Items                     $       68.2    $   29.5     $      --           $     0.2       $    38.5         $  0.65 
                        =====  =========  ===  =====   ===  ======  =====  ===  ======          ======  ====      ==== 
 
Twelve months ended 
 October 31, 2017           $      200.3    $   67.2     $    (2.0)          $    16.5       $   118.6         $  2.02 
 Loss on disposal of 
  properties, plants, 
  equipment and 
  businesses, net                    1.3        (0.7)           --                (0.2)            2.2            0.04 
 Restructuring charges              12.7        (2.2)           --                 0.6            14.3            0.24 
 Non-cash asset 
  impairment charges                20.8         0.1            --                 0.1            20.6            0.35 
 Acquisition-related 
  costs                              0.7         0.2            --                  --             0.5            0.01 
 Non-cash pension 
  settlement charge                 27.1        10.2            --                  --            16.9            0.29 
                        ----------------  ----------   -----------  -----  -----------      ----------  ----  -------- 
 Excluding Special 
  Items                     $      262.9    $   74.8     $    (2.0)          $    17.0       $   173.1         $  2.95 
                        =====  =========  ===  =====   ===  ======   ====  ===  ======          ======  ====      ==== 
 
Twelve months ended 
 October 31, 2016           $      141.2    $   66.5     $    (0.8)          $     0.6       $    74.9         $  1.28 
 Loss on disposal of 
  properties, plants, 
  equipment and 
  businesses, net                    4.2        (2.1)           --                (0.7)            7.0            0.12 
 Restructuring charges              26.9         4.9            --                 2.9            19.1            0.33 
 Non-cash asset 
  impairment charges                51.4         5.2            --                 3.8            42.4            0.71 
 Acquisition-related 
  costs                              0.2         0.1            --                  --             0.1              -- 
                        ----------------  ----------   -----------  -----  -----------      ----------  ----  -------- 
 Excluding Special 
  Items                     $      223.9    $   74.6     $    (0.8)          $     6.6       $   143.5         $  2.44 
                        =====  =========  ===  =====   ===  ======   ====  ===  ======          ======  ====      ==== 
 
 

The impact of income tax expense and non-controlling interest on each special item is calculated based on tax rates and ownership percentages specific to each applicable entity. Included in the year ended October 31, 2017 restructuring charges special item is a $4.4 million income tax charge due to a change in assertions related to unremitted foreign earnings as a result of the restructuring of our intercompany debt portfolio. The tax rate excluding the impact of special items for the fourth quarter of 2017 was 12.7 percent and in fiscal 2017 was 28.5 percent.

 
 
                                GREIF, INC. AND SUBSIDIARY COMPANIES 
                                   GAAP TO NON-GAAP RECONCILIATION 
                                   SELECTED FINANCIAL INFORMATION 
                                EXCLUDING THE IMPACT OF DIVESTITURES 
                                              UNAUDITED 
 
                      Three months ended October 31,            Twelve months ended October 31, 
                 ----------------------------------------  ------------------------------------------ 
                                           Excluding the                               Excluding the 
                            Impact of        Impact of                  Impact of        Impact of 
(in millions)     2017     Divestitures     Divestitures     2017      Divestitures     Divestitures 
--------------   ------  ----------------  --------------  --------  ----------------  -------------- 
Net Sales: 
Rigid 
 Industrial 
 Packaging & 
 Services        $662.5    $     --          $      662.5  $2,522.7    $    1.8         $     2,520.9 
Paper Packaging 
 & Services       223.0          --                 223.0     800.9          --                 800.9 
Flexible 
 Products & 
 Services          76.2          --                  76.2     286.4          --                 286.4 
Land Management     6.4          --                   6.4      28.2          --                  28.2 
                 ------  ----------  ----  --------------  --------  ----------  ----  -------------- 
Consolidated     $968.1    $     --          $      968.1  $3,638.2    $    1.8         $     3,636.4 
                  =====  ===  =====  ====  ===  =========   =======  ===  =====  ====      ========== 
 
Gross Profit: 
Rigid 
 Industrial 
 Packaging & 
 Services        $118.9    $   (0.4)         $      119.3  $  502.2    $   (0.1)        $       502.3 
Paper Packaging 
 & Services        49.0          --                  49.0     150.9          --                 150.9 
Flexible 
 Products & 
 Services          12.0          --                  12.0      51.1          --                  51.1 
Land Management     2.5          --                   2.5      10.5          --                  10.5 
                 ------  ----------  ----  --------------  --------  ----------  ----  -------------- 
Consolidated     $182.4    $   (0.4)         $      182.8  $  714.7    $   (0.1)        $       714.8 
                  =====  ===  =====   ===  ===  =========   =======  ===  =====   ===      ========== 
 
Operating 
 Profit: 
Rigid 
 Industrial 
 Packaging & 
 Services        $ 24.5    $   (0.6)         $       25.1  $  173.4    $   (0.5)        $       173.9 
Paper Packaging 
 & Services        33.7          --                  33.7      83.3          --                  83.3 
Flexible 
 Products & 
 Services           0.3          --                   0.3       5.7          --                   5.7 
Land Management     1.9          --                   1.9      10.0          --                  10.0 
                 ------  ----------  ----  --------------  --------  ----------  ----  -------------- 
Consolidated     $ 60.4    $   (0.6)         $       61.0  $  272.4    $   (0.5)        $       272.9 
                  =====  ===  =====   ===  ===  =========   =======  ===  =====   ===      ========== 
 
Operating 
 profit before 
 special 
 items(10) : 
Rigid 
 Industrial 
 Packaging & 
 Services        $ 52.5    $   (0.5)         $       53.0  $  226.4    $   (0.5)        $       226.9 
Paper Packaging 
 & Services        34.0          --                  34.0      94.1          --                  94.1 
Flexible 
 Products & 
 Services           0.6          --                   0.6       6.9          --                   6.9 
Land Management     1.8          --                   1.8       7.6          --                   7.6 
                 ------  ----------  ----  --------------  --------  ----------  ----  -------------- 
Consolidated     $ 88.9    $   (0.5)         $       89.4  $  335.0    $   (0.5)        $       335.5 
                  =====  ===  =====   ===  ===  =========   =======  ===  =====   ===      ========== 
 
 

Press Release: Greif Reports Fiscal 2017 and -8-

(10) 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.

 
 
                                      GREIF, INC. AND SUBSIDIARY COMPANIES 
                                         GAAP TO NON-GAAP RECONCILIATION 
                                         SELECTED FINANCIAL INFORMATION 
                                EXCLUDING THE IMPACT OF DIVESTITURES (CONTINUED) 
                                                    UNAUDITED 
 
                         Three months ended October 31,                  Twelve months ended October 31, 
                 ----------------------------------------------  ------------------------------------------------ 
                                                Excluding the                                     Excluding the 
                                Impact of         Impact of                       Impact of         Impact of 
(in millions)       2016       Divestitures      Divestitures        2016        Divestitures      Divestitures 
--------------   ----------  ----------------  ----------------  ------------  ----------------  ---------------- 
Net Sales: 
Rigid 
 Industrial 
 Packaging & 
 Services        $602.9        $    2.5          $    600.4      $2,324.2       $    62.4         $   2,261.8 
Paper Packaging 
 & Services       189.0              --               189.0         687.1              --               687.1 
Flexible 
 Products & 
 Services          69.1              --                69.1         288.1             6.5               281.6 
Land Management     6.6              --                 6.6          24.2              --                24.2 
                 ------      ----------  ----  ------------      --------      ----------  ----  ------------ 
Consolidated     $867.6        $    2.5          $    865.1      $3,323.6       $    68.9         $   3,254.7 
                  =====      ===  =====  ====  ===  =======       =======          ======  ====      ======== 
 
Gross Profit: 
Rigid 
 Industrial 
 Packaging & 
 Services        $130.9        $    0.3          $    130.6      $  489.4       $     5.3         $     484.1 
Paper Packaging 
 & Services        39.0              --                39.0         144.5              --               144.5 
Flexible 
 Products & 
 Services          11.7              --                11.7          42.0             1.1                40.9 
Land Management     1.8              --                 1.8           9.0              --                 9.0 
                 ------      ----------  ----  ------------      --------      ----------  ----  ------------ 
Consolidated     $183.4        $    0.3          $    183.1      $  684.9       $     6.4         $     678.5 
                  =====      ===  =====  ====  ===  =======       =======          ======  ====      ======== 
 
Operating 
 Profit 
 (loss): 
Rigid 
 Industrial 
 Packaging & 
 Services        $ 30.5        $   (0.4)         $     30.9      $  143.9       $   (19.2)        $     163.1 
Paper Packaging 
 & Services        24.7              --                24.7          89.1              --                89.1 
Flexible 
 Products & 
 Services          (3.6)             --                (3.6)        (15.5)            0.3               (15.8) 
Land Management     2.0              --                 2.0           8.1              --                 8.1 
                 ------      ----------  ----  ------------      --------      ----------  ----  ------------ 
Consolidated     $ 53.6        $   (0.4)         $     54.0      $  225.6       $   (18.9)        $     244.5 
                  =====      ===  =====   ===  ===  =======       =======          ======   ===      ======== 
 
Operating 
 profit (loss) 
 before special 
 items(11) : 
Rigid 
 Industrial 
 Packaging & 
 Services        $ 60.4        $     --          $     60.4      $  213.7       $    (1.3)        $     215.0 
Paper Packaging 
 & Services        25.1              --                25.1          91.7              --                91.7 
Flexible 
 Products & 
 Services           0.1              --                 0.1          (3.6)            0.3                (3.9) 
Land Management     1.4              --                 1.4           6.5              --                 6.5 
                 ------      ----------  ----  ------------      --------      ----------  ----  ------------ 
Consolidated     $ 87.0        $     --          $     87.0      $  308.3       $    (1.0)        $     309.3 
                  =====      ===  =====  ====  ===  =======       =======          ======   ===      ======== 
 
 

(11) 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.

 
 
              GREIF, INC. AND SUBSIDIARY COMPANIES 
                GAAP TO NON-GAAP RECONCILIATION 
         NET SALES TO NET SALES EXCLUDING THE IMPACT OF 
             DIVESTITURES AND CURRENCY TRANSLATION 
                           UNAUDITED 
 
                  Three months ended 
                      October 31, 
                 --------------------- 
                                         Increase 
                                            in      Increase in 
                                        Net Sales    Net Sales 
(in millions)       2017       2016        ($)          (%) 
--------------   ----------  ---------  ----------  ------------ 
Net Sales          $  968.1   $  867.6    $  100.5    11.6% 
Impact of 
 Divestitures            --        2.5 
                 ----------  --------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures      $  968.1   $  865.1 
Currency 
Translation            12.2        N/A 
                 ----------  --------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures 
 and Currency 
 Translation       $  955.9   $  865.1    $   90.8    10.5% 
                 ===  =====      ===== 
 
 
                    Twelve months ended 
                        October 31, 
                 ------------------------- 
                                             Increase    Increase 
                                                in          in 
                                            Net Sales   Net Sales 
(in millions)        2017         2016         ($)         (%) 
--------------   ------------  -----------  ----------  ---------- 
Net Sales        $3,638.2       $  3,323.6   $   314.6   9.5% 
Impact of 
 Divestitures         1.8             68.9 
                 --------      ----------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures    $3,636.4       $  3,254.7 
Currency 
 Translation        (23.1)             N/A 
                 --------      ----------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures 
 and Currency 
 Translation     $3,659.5       $  3,254.7   $   404.8  12.4% 
                  =======          ======= 
 
 
 
 
              GREIF, INC. AND SUBSIDIARY COMPANIES 
                GAAP TO NON-GAAP RECONCILIATION 
             RIGID INDUSTRIAL PACKAGING & SERVICES 
         NET SALES TO NET SALES EXCLUDING THE IMPACT OF 
             DIVESTITURES AND CURRENCY TRANSLATION 
                           UNAUDITED 
 
                  Three months ended 
                      October 31, 
                 --------------------- 
                                         Increase 
                                            in      Increase in 
                                        Net Sales    Net Sales 
(in millions)       2017       2016        ($)          (%) 
--------------   ----------  ---------  ----------  ------------ 
Net Sales          $  662.5   $  602.9    $   59.6    9.9% 
Impact of 
 Divestitures            --        2.5 
                 ----------  --------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures      $  662.5   $  600.4 
Currency 
Translation             9.8        N/A 
                 ----------  --------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures 
 and Currency 
 Translation       $  652.7   $  600.4    $   52.3    8.7% 
                 ===  =====      ===== 
 
 
                    Twelve months ended 
                        October 31, 
                 ------------------------- 
                                             Increase    Increase 
                                                in          in 
                                            Net Sales   Net Sales 
(in millions)        2017         2016         ($)         (%) 
--------------   ------------  -----------  ----------  ---------- 
Net Sales        $2,522.7       $  2,324.2   $   198.5   8.5% 
Impact of 
 Divestitures         1.8             62.4 
                 --------      ----------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures    $2,520.9       $  2,261.8 
Currency 
 Translation        (16.6)             N/A 
                 --------      ----------- 
Net Sales 
 Excluding the 
 Impact of 
 Divestitures 
 and Currency 
 Translation     $2,537.5       $  2,261.8   $   275.7  12.2% 
                  =======          ======= 
 
 
 
 
               GREIF, INC. AND SUBSIDIARY COMPANIES 
                  GAAP TO NON-GAAP RECONCILIATION 
                       PRIMARY PRODUCTS(12) 
    NET SALES TO NET SALES EXCLUDING THE IMPACT OF DIVESTITURES 
                             UNAUDITED 
 
                    Three months ended 
                        October 31, 
                 ------------------------- 
                                             Increase 
                                                in      Increase in 
                                             Primary      Primary 
                                             Products    Products 
                                            Net Sales    Net Sales 
(in millions)       2017         2016          ($)          (%) 
--------------   ----------  -------------  ----------  ----------- 
Rigid 
 

Press Release: Greif Reports Fiscal 2017 and -9-

 Industrial 
 Packaging & 
 Services 
Primary 
 Products Net 
 Sales             $  590.6   $  516.9 
Impact of 
 Divestitures            --       (0.7) 
                 ----------  --------- 
Primary 
 Products Net 
 Sales 
 Excluding the 
 Impact of 
 Divestitures      $  590.6   $  516.2         $  74.4  14.4% 
                 ===  =====      ===== 
 
Paper Packaging 
 & Services 
Primary 
 Products Net 
 Sales             $  222.1   $  188.3 
Impact of 
Divestitures             --         -- 
                 ----------  --------- 
Primary 
 Products Net 
 Sales 
 Excluding the 
 Impact of 
 Divestitures      $  222.1   $  188.3         $  33.8  18.0% 
                 ===  =====      ===== 
 
Flexible 
 Products & 
 Services 
Primary 
 Products Net 
 Sales             $   69.2   $   68.1 
Impact of 
Divestitures             --         -- 
                 ----------  --------- 
Primary 
 Products Net 
 Sales 
 Excluding the 
 Impact of 
 Divestitures      $   69.2   $   68.1         $   1.1   1.6% 
                 ===  =====      ===== 
 
 

(12) Primary products are manufactured steel, plastic and fibre drums; intermediate bulk containers; linerboard, medium, corrugated sheets and corrugated containers; and 1&2 loop and 4 loop flexible intermediate bulk containers.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171206006310/en/

 
    CONTACT:    Investor Relations: 
 

Greif, Inc.

Matt Eichmann, 740-549-6067

[email protected]