GREIF, INC. (NYSE:GEF) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.
On December 7, 2016, Greif, Inc. (the Company) issued a press
release (the Earnings Release) announcing the financial results
for its fourth quarter ended October 31, 2016. The full text of
the Earnings Release is attached as Exhibit 99.1 to this Current
Report on Form 8-K.
release (the Earnings Release) announcing the financial results
for its fourth quarter ended October 31, 2016. 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 net income, excluding the impact of special
items, for the fourth quarter of 2016, the fourth quarter of 2015, the fiscal year 2016 and the fiscal year 2015, 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, less timberland gains, less gains or plus losses, as applicable, on disposal of properties, plants, equipment and businesses, net, plus the impact of Venezuela devaluation on cost of products sold, less the impact of Venezuela devaluation on other (income) expense, net of tax and noncontrolling interest, each on a consolidated basis for the applicable period; |
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(ii)
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earnings per diluted class A share of the Company, excluding
the impact of special items, for the fourth quarter of 2016, the fourth quarter of 2015, the fiscal year 2016 and the fiscal year 2015, 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 non-cash asset impairment charges, less timberland gains, less gains or plus losses, as applicable, on disposal of properties, plants, equipment and businesses, net, plus the impact of Venezuela devaluation on cost of products sold, less the impact of Venezuela devaluation on other (income) expense, net of tax and noncontrolling interest, each on a consolidated basis for the applicable period; |
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(iii)
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the Companys consolidated net sales for the fourth quarter of
2016, compared to the fourth quarter of 2015 and for the fiscal year 2016 compared to the fiscal year 2015, after adjusting for the effect of divestitures for both periods and currency translation for the fourth quarter of 2016 and fiscal year 2016, as the case may be, which is equal to the Companys consolidated net sales for the applicable period, after adjusting each period for divestitures occurring during fiscal years 2016 and 2015 and after adjusting the fourth quarter of 2016 and the fiscal year 2016, as the case may be, for currency translation for the applicable period; |
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(iv)
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the Company’s consolidated operating profit, before special
items, for the fourth quarter of 2016, the fourth quarter of 2015, the fiscal year 2016 and the fiscal year 2015, 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, less timberland gains, less gains or plus losses, as applicable, on disposal of properties, plants, equipment and businesses, net, plus the impact of Venezuela devaluation on cost of products sold, net of tax, each on a consolidated basis for the applicable period, along with the Company’s consolidated operating profit margin before special items for the fourth quarter of 2016, the fourth quarter of 2015, the fiscal year 2016 and the fiscal year 2015 which is equal to the amounts of the non-GAAP Measure described above for the applicable period divided by the Company’s consolidated net sales for the applicable period; |
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(v)
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the Companys consolidated free cash flow for the fourth
quarter of 2016, the fourth quarter of 2015, the fiscal year 2016 and the fiscal year 2015 which is equal to the Companys consolidated net cash provided by operating activities for the applicable period less cash paid for capital expenditures for the applicable period; |
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(vi)
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net sales after adjusting for the effect of divestitures and
currency translation for the Companys Rigid Industrial Packaging business segment for the fourth quarter of 2016 and the fourth quarter of 2015, which is equal to that business segments net sales for the applicable quarter, after adjusting for divestitures occurring during fiscal years 2016 and 2015 as applicable to that business segment and after adjusting the fourth quarter of 2016 for currency translation; |
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(vii)
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operating profit before special items and excluding the
impact of divestitures for the Companys Rigid Industrial Packaging Services business segment for the fourth quarter of 2016 and the fourth quarter of 2015, which is equal to that business segments operating profit plus restructuring charges, plus acquisition-related costs, plus non-cash asset impairment charges, plus loss on disposal of properties, |
plants, equipment, and businesses, net, and further adjusted for
divestitures occurring during fiscal years 2016 and 2015 as
applicable to that business segment;
divestitures occurring during fiscal years 2016 and 2015 as
applicable to that business segment;
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(viii)
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net sales excluding the impact of divestitures for the
Company’s Flexible Products Services business segment for the fourth quarter of 2016 and the fourth quarter of 2015, which is equal to that business segment’s net sales for the applicable quarter as adjusted for divestitures occurring during fiscal years 2016 and 2015 as applicable to that business segment; and |
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(ix)
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operating profit before special items for the Companys
Flexible Products Services business segment for the fourth quarter of 2016 and the fourth quarter of 2015, which is equal to that business segments operating loss plus restructuring charges, plus non-cash asset impairment charges, plus loss 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 excluding
gains and losses on the disposal of businesses, timberland or
properties, plants and equipment, net, non-cash asset impairment
charges due to unanticipated changes in business,
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.
financial measure, 2017 Class A earnings per share excluding
gains and losses on the disposal of businesses, timberland or
properties, plants and equipment, net, non-cash asset impairment
charges due to unanticipated changes in business,
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.
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, timberland
gains, disposals of properties, plants , equipment and
businesses, net, and Venezuela devaluation), 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
than the most nearly equivalent GAAP data 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, timberland
gains, disposals of properties, plants , equipment and
businesses, net, and Venezuela devaluation), 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
than the most nearly equivalent GAAP data 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 December 7, 2016, the Company released recorded remarks of
management, made available on the Companys website at
www.greif.com/investors, regarding the Companys financial results
for its fourth quarter ended October 31, 2016. The file
transcript of managements recorded remarks is attached as Exhibit
99.2 to this Current Report on Form 8-K.
management, made available on the Companys website at
www.greif.com/investors, regarding the Companys financial results
for its fourth quarter ended October 31, 2016. The file
transcript of managements recorded remarks is attached as Exhibit
99.2 to this Current Report on Form 8-K.
On December 8, 2016, 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 fourth quarter ended October 31, 2016. The file transcript of
the Conference Call is attached as Exhibit 99.3 to this Current
Report on Form 8-K.
call with interested investors and financial analysts (the
Conference Call) to discuss the Companys financial results for
its fourth quarter ended October 31, 2016. The file transcript of
the Conference Call is attached as Exhibit 99.3 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 December 7, 2016
announcing the financial results for its fourth quarter ended October 31, 2016. |
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99.2
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File transcript of recorded remarks of management of
Greif, Inc., made available on the Company’s website at www.greif.com/investors on December 7, 2016, regarding the financial results for its fourth quarter ended October 31, 2016. |
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99.3
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File transcript of conference call with interested
investors and financial analysts held by management of Greif, Inc. on December 8, 2016. |
About GREIF, INC. (NYSE:GEF)
Greif, Inc. is a producer of industrial packaging products and services. The Company’s products include steel, fiber and plastic drums, rigid intermediate bulk containers, closure systems, transit protection products, water bottles and reconditioned industrial containers, and offers services, such as container life cycle management, blending, filling, logistics, warehousing and other packaging services. The Company operates in four business segments: Rigid Industrial Packaging & Services; Flexible Products & Services; Paper Packaging, and Land Management. The Company sells its rigid industrial packaging products to customers in industries, such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral, among others. The Company has manufacturing facilities located in over 50 countries. GREIF, INC. (NYSE:GEF) Recent Trading Information
GREIF, INC. (NYSE:GEF) closed its last trading session down -0.76 at 53.91 with 262,196 shares trading hands.