GREIF, INC. (NYSE:GEF) Files An 8-K Results of Operations and Financial Condition
Item 2.02.
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Results of Operations and Financial Condition.
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On June 7, 2017, Greif, Inc. (the Company) issued a press release
(the Earnings Release) announcing the financial results for its
second>quarter ended April 30, 2017. The full text of the
Earnings Release is attached as Exhibit 99.1 to this Current Report
on Form 8-K.
(the Earnings Release) announcing the financial results for its
second>quarter ended April 30, 2017. The full text of the
Earnings Release is attached as Exhibit 99.1 to this Current Report
on Form 8-K.
The Earnings Release included the following non-GAAP financial
measures (the non-GAAP Measures):
measures (the non-GAAP Measures):
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(i)
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the Company’s consolidated operating profit, before special
items, for the second quarter of 2017 and the second quarter of 2016, which is equal to the Company’s consolidated operating profit for the applicable period plus restructuring charges, plus acquisition-related costs, plus non-cash asset impairment charges, plus non-cash pension settlement charges, less gains on disposal of properties, plants, equipment and businesses, net, each on a consolidated basis for the applicable period; |
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(ii)
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the Company’s net income, excluding the impact of special
items, for the second quarter of 2017 and the second quarter of 2016, which is equal to the Company’s consolidated net income for the applicable period plus restructuring charges, plus acquisition-related costs, plus non-cash asset impairment charges, plus non-cash pension settlement charges, less gains on disposal of properties, plants, equipment and businesses, net, each on a consolidated basis for the applicable period; |
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(iii)
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earnings per diluted class A share of the Company, excluding
the impact of special items, for the second quarter of 2017 and the second quarter of 2016, which is equal to earnings per diluted class A share of the Company for the applicable period plus restructuring charges, plus acquisition-related costs, plus noncash asset impairment charges, plus non-cash pension settlement charges, less gains on disposal of properties, plants, equipment and businesses, net, each net of tax and noncontrolling interest and on a consolidated basis for the applicable period; |
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(iv)
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the Companys consolidated free cash flow for the second
quarter of 2017 and the second quarter of 2016, which is equal to the Companys consolidated net cash provided by operating activities for the applicable period less cash paid for purchases of properties, plants and equipment for the applicable period; |
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(v)
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net sales excluding divestitures and foreign currency
translation for the Company’s Rigid Industrial Packaging Services business segment for the second quarter of 2017 and the second quarter of 2016, which is equal to that business segment’s net sales for the applicable quarter, after adjusting for divestitures occurring since the second quarter of 2016, as applicable to that business segment, and after adjusting the second quarter of 2016 for currency translation; |
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(vi)
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operating profit before special items for the Companys Rigid
Industrial Packaging Services business segment for the second quarter of 2017 and the second quarter of 2016 which is equal to that business segments operating profit plus restructuring charges, plus acquisition-related costs, plus non-cash asset impairment charges, plus non-cash pension settlement charge, less gains on disposal of properties, plants, equipment and businesses, net, each for the applicable period; |
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(vii)
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operating profit before special items for the Companys Paper
Packaging Services business segment for the second quarter of 2017 and the second quarter of 2016, which is equal to that business segments operating profit plus restructuring charges, plus non-cash pension settlement charges, less gains on disposal of properties, plants, equipment and businesses, net, each for the applicable period; |
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(viii)
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operating profit or loss, as applicable, before special items
for the Companys Flexible Products Services business segment for the second quarter of 2017 and the second quarter of 2016, which is equal to that business segments operating profit or loss, as applicable, plus restructuring charges, less gains on disposal of properties, plants, equipment and businesses, net; |
The Earnings Release also included a forward-looking non-GAAP
financial measure, 2017 Class A earnings per share before special
items which excludes gains and losses on the disposal of
businesses, timberland or properties, plants and equipment, net,
non-cash asset impairment charges, non-cash pension settlement
charges, restructuring-related activities or acquisition costs, and
the income tax effects of these items and other income tax-related
events. No reconciliation of this forward-looking non-GAAP
financial measure was included in the Earnings 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, the Company is unable to quantify certain amounts that
would be required to be included in the most directly comparable
GAAP financial measure without unreasonable efforts. The Earnings
Release also included a forward-looking
financial measure, 2017 Class A earnings per share before special
items which excludes gains and losses on the disposal of
businesses, timberland or properties, plants and equipment, net,
non-cash asset impairment charges, non-cash pension settlement
charges, restructuring-related activities or acquisition costs, and
the income tax effects of these items and other income tax-related
events. No reconciliation of this forward-looking non-GAAP
financial measure was included in the Earnings 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, the Company is unable to quantify certain amounts that
would be required to be included in the most directly comparable
GAAP financial measure without unreasonable efforts. The Earnings
Release also included a forward-looking
non-GAAP financial measure, 2017 projected free cash flow which is
equal to the Company’s consolidated net cash used by operating
activities for the applicable scenario less cash paid for capital
expenditures for the applicable scenario. A reconciliation of this
forward-looking non-GAAP financial measure was included in the
Earnings Release.
equal to the Company’s consolidated net cash used by operating
activities for the applicable scenario less cash paid for capital
expenditures for the applicable scenario. A reconciliation of this
forward-looking non-GAAP financial measure was included in the
Earnings Release.
Management of the Company uses the non-GAAP Measures to evaluate
ongoing operations and believes that these non-GAAP Measures are
useful to investors. The exclusion of the impact of the identified
special items (restructuring charges, acquisition related costs,
non-cash asset impairment charges, non-cash pension settlement
charges, timberland gains and disposals of properties, plants,
equipment and businesses, net), divestitures and currency
translation enable management and investors to perform meaningful
comparisons of current and historical performance of the Company.
Management of the Company also believes that the exclusion of the
impact of the identified special items, divestitures and currency
translation provide a stable platform on which to compare the
historical performance of the Company and that investors desire
this information. Management believes that the use of consolidated
free cash flow, which excludes cash paid for capital expenditures
from the Company’s consolidated net cash provided by operating
activities, provides additional information on which to evaluate
the cash flow generated by the Company and believes that this is
information that investors find valuable. The non-GAAP Measures are
intended to supplement and should be read together with our
financial results. The non-GAAP Measures 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 the
non-GAAP Measures.
ongoing operations and believes that these non-GAAP Measures are
useful to investors. The exclusion of the impact of the identified
special items (restructuring charges, acquisition related costs,
non-cash asset impairment charges, non-cash pension settlement
charges, timberland gains and disposals of properties, plants,
equipment and businesses, net), divestitures and currency
translation enable management and investors to perform meaningful
comparisons of current and historical performance of the Company.
Management of the Company also believes that the exclusion of the
impact of the identified special items, divestitures and currency
translation provide a stable platform on which to compare the
historical performance of the Company and that investors desire
this information. Management believes that the use of consolidated
free cash flow, which excludes cash paid for capital expenditures
from the Company’s consolidated net cash provided by operating
activities, provides additional information on which to evaluate
the cash flow generated by the Company and believes that this is
information that investors find valuable. The non-GAAP Measures are
intended to supplement and should be read together with our
financial results. The non-GAAP Measures 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 the
non-GAAP Measures.
Section 7 Regulation FD
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Item 7.01.
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Regulation FD Disclosure.
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On June 8, 2017, management of the Company held a conference call
with interested investors and financial analysts (the Conference
Call) to discuss the Companys financial results for its
second>quarter ended April 30, 2017. The file transcript of the
Conference Call is attached as Exhibit 99.2 to this Current Report
on Form 8-K.
with interested investors and financial analysts (the Conference
Call) to discuss the Companys financial results for its
second>quarter ended April 30, 2017. The file transcript of the
Conference Call is attached as Exhibit 99.2 to this Current Report
on Form 8-K.
Section 9 Financial Statements and Exhibits
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit No.
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Description
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99.1
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Press release issued by Greif, Inc. on June 7, 2017
announcing the financial results for its second quarter ended April 30, 2017. |
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99.2
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File transcript of conference call with interested
investors and financial analysts held by management of Greif, Inc. on June 8, 2017. |
About GREIF, INC. (NYSE:GEF)
Greif, Inc. is a producer of industrial packaging products and services. The Company operates through four business segments: Rigid Industrial Packaging & Services; Paper Packaging; Flexible Products & Services, and Land Management. In the Rigid Industrial Packaging & Services segment, the Company produces rigid industrial packaging products, including steel, fire and plastic drums, rigid intermediate bulk containers and closure systems, and offers services, such as container life cycle management, blending, filling, logistics, warehousing and other packaging services. In the Paper Packaging segment, the Company sells containerboard, corrugated sheets, corrugated containers and other corrugated products. In the Flexible Products & Services segment, the Company produces flexible intermediate bulk containers and offers related services. In the Land Management segment, the Company is focused on the harvesting and regeneration of the United States timber properties.