(December 8, 2021) |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Exhibit No. | Description | ||||
Press release issued by Greif, Inc. on December 8, 2021 announcing the financial results for its fourth quarter and fiscal year ended October 31, 2021. | |||||
File transcript of conference call with interested investors and financial analysts held by management of Greif, Inc. on December 9, 2021. |
GREIF, INC. | ||||||||
Date: December 10, 2021 | By | /s/ Lawrence A. Hilsheimer | ||||||
Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer |
Net Sales Impact - Primary Products | Global Industrial Packaging | Paper Packaging & Services | |||||||||
% | % | ||||||||||
Currency Translation | 1.0 | % | 0.1 | % | |||||||
Volume | 2.7 | % | 1.5 | % | |||||||
Selling Prices and Product Mix | 44.7 | % | 20.0 | % | |||||||
Total Impact of Primary Products | 48.4 | % | 21.6 | % |
(in millions, except per share amounts) | Fiscal 2022 Outlook | ||||
Class A earnings per share before adjustments | $5.85 - $6.45 | ||||
Adjusted free cash flow | $400 - $460 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net sales | $ | 1,578.2 | $ | 1,161.3 | $ | 5,556.1 | $ | 4,515.0 | |||||||||||||||
Cost of products sold | 1,282.1 | 929.6 | 4,463.1 | 3,600.3 | |||||||||||||||||||
Gross profit | 296.1 | 231.7 | 1,093.0 | 914.7 | |||||||||||||||||||
Selling, general and administrative expenses | 142.2 | 139.1 | 565.9 | 516.0 | |||||||||||||||||||
Restructuring charges | 4.3 | 11.9 | 23.1 | 38.7 | |||||||||||||||||||
Acquisition and integration related costs | 2.9 | 3.5 | 9.1 | 17.0 | |||||||||||||||||||
Non-cash asset impairment charges | 7.4 | 1.6 | 8.9 | 18.5 | |||||||||||||||||||
Gain on disposal of properties, plants and equipment, net | (2.4) | (17.1) | (3.7) | (19.2) | |||||||||||||||||||
Loss on disposal of businesses, net | 0.2 | 0.9 | 0.2 | 38.8 | |||||||||||||||||||
Timberland gains, net | — | — | (95.7) | — | |||||||||||||||||||
Operating profit | 141.5 | 91.8 | 585.2 | 304.9 | |||||||||||||||||||
Interest expense, net | 16.9 | 26.0 | 92.7 | 115.8 | |||||||||||||||||||
Non-cash pension settlement charges | 0.1 | 0.4 | 9.1 | 0.3 | |||||||||||||||||||
Other expense (income), net | 2.6 | (0.8) | 4.8 | 2.7 | |||||||||||||||||||
Income before income tax expense and equity earnings of unconsolidated affiliates, net | 121.9 | 66.2 | 478.6 | 186.1 | |||||||||||||||||||
Income tax expense | 13.1 | 18.5 | 69.6 | 63.3 | |||||||||||||||||||
Equity earnings of unconsolidated affiliates, net of tax | (1.1) | (0.3) | (4.2) | (1.5) | |||||||||||||||||||
Net income | 109.9 | 48.0 | 413.2 | 124.3 | |||||||||||||||||||
Net income attributable to noncontrolling interests | (5.4) | (3.6) | (22.5) | (15.5) | |||||||||||||||||||
Net income attributable to Greif, Inc. | $ | 104.5 | $ | 44.4 | $ | 390.7 | $ | 108.8 | |||||||||||||||
Basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | 1.76 | $ | 0.74 | $ | 6.57 | $ | 1.83 | |||||||||||||||
Class B common stock | $ | 2.63 | $ | 1.12 | $ | 9.84 | $ | 2.74 | |||||||||||||||
Diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | $ | 1.74 | $ | 0.74 | $ | 6.54 | $ | 1.83 | |||||||||||||||
Class B common stock | $ | 2.63 | $ | 1.12 | $ | 9.84 | $ | 2.74 | |||||||||||||||
Shares used to calculate basic earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | 26.6 | 26.4 | 26.5 | 26.4 | |||||||||||||||||||
Class B common stock | 22.0 | 22.0 | 22.0 | 22.0 | |||||||||||||||||||
Shares used to calculate diluted earnings per share attributable to Greif, Inc. common shareholders: | |||||||||||||||||||||||
Class A common stock | 26.7 | 26.5 | 26.7 | 26.4 | |||||||||||||||||||
Class B common stock | 22.0 | 22.0 | 22.0 | 22.0 |
(in millions) | October 31, 2021 | October 31, 2020 | |||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 124.6 | $ | 105.9 | |||||||
Trade accounts receivable | 889.5 | 636.6 | |||||||||
Inventories | 499.2 | 293.6 | |||||||||
Assets held by special purpose entities | — | 50.9 | |||||||||
Other current assets | 150.8 | 215.8 | |||||||||
1,664.1 | 1,302.8 | ||||||||||
LONG-TERM ASSETS | |||||||||||
Goodwill | 1,515.4 | 1,518.4 | |||||||||
Intangible assets | 648.4 | 715.3 | |||||||||
Operating lease assets | 289.4 | 307.5 | |||||||||
Other long-term assets | 177.3 | 140.0 | |||||||||
2,630.5 | 2,681.2 | ||||||||||
PROPERTIES, PLANTS AND EQUIPMENT | 1,521.2 | 1,526.9 | |||||||||
$ | 5,815.8 | $ | 5,510.9 | ||||||||
LIABILITIES AND EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | $ | 704.5 | $ | 450.7 | |||||||
Short-term borrowings | 50.5 | 28.4 | |||||||||
Current portion of long-term debt | 120.3 | 123.1 | |||||||||
Current portion of operating lease liabilities | 54.0 | 52.3 | |||||||||
Current portion of liabilities held by special purpose entities | — | 43.3 | |||||||||
Other current liabilities | 384.8 | 302.3 | |||||||||
1,314.1 | 1,000.1 | ||||||||||
LONG-TERM LIABILITIES | |||||||||||
Long-term debt | 2,054.8 | 2,335.5 | |||||||||
Operating lease liabilities | 239.5 | 257.7 | |||||||||
Other long-term liabilities | 607.7 | 696.9 | |||||||||
2,902.0 | 3,290.1 | ||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | 24.1 | 20.0 | |||||||||
EQUITY | |||||||||||
Total Greif, Inc. equity | 1,514.3 | 1,152.2 | |||||||||
Noncontrolling interests | 61.3 | 48.5 | |||||||||
1,575.6 | 1,200.7 | ||||||||||
$ | 5,815.8 | $ | 5,510.9 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||
Net income | $ | 109.9 | $ | 48.0 | $ | 413.2 | $ | 124.3 | |||||||||||||||
Depreciation, depletion and amortization | 58.2 | 60.1 | 234.4 | 242.5 | |||||||||||||||||||
Asset impairments | 7.4 | 1.6 | 8.9 | 18.5 | |||||||||||||||||||
Pension settlement charges | 0.1 | 0.4 | 9.1 | 0.3 | |||||||||||||||||||
Timberland gains, net | — | — | (95.7) | — | |||||||||||||||||||
Deferred income tax expense | (5.6) | 22.0 | (47.2) | 16.7 | |||||||||||||||||||
Other non-cash adjustments to net income | (1.2) | (7.0) | 35.1 | 69.8 | |||||||||||||||||||
Operating working capital changes | (83.9) | 43.3 | (222.7) | 56.1 | |||||||||||||||||||
Increase (decrease) in cash from changes in other assets and liabilities | 52.4 | 32.0 | 60.9 | (73.5) | |||||||||||||||||||
Net cash provided by operating activities | 137.3 | 200.4 | 396.0 | 454.7 | |||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Purchases of properties, plants and equipment | (46.5) | (32.6) | (140.7) | (131.4) | |||||||||||||||||||
Purchases of and investments in timber properties | 0.8 | (1.4) | (6.6) | (5.4) | |||||||||||||||||||
Proceeds on the sale of timberlands, net | — | — | 145.1 | — | |||||||||||||||||||
Collections of receivables held in special purpose entities | — | — | 50.9 | — | |||||||||||||||||||
Payments for issuance of loans receivable | — | — | (15.0) | — | |||||||||||||||||||
Proceeds from the sale of properties, plants and equipment and businesses | 6.4 | 23.6 | 18.9 | 114.3 | |||||||||||||||||||
Other | (0.1) | — | (5.8) | (2.7) | |||||||||||||||||||
Net cash used in investing activities | (39.4) | (10.4) | 46.8 | (25.2) | |||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
Payments on long-term debt, net | (40.8) | (152.3) | (266.0) | (287.6) | |||||||||||||||||||
Dividends paid to Greif, Inc. shareholders | (27.4) | (26.1) | (105.8) | (104.3) | |||||||||||||||||||
Payments for liabilities held in special purpose entities | — | — | (43.3) | — | |||||||||||||||||||
Other | (0.6) | (1.3) | (7.8) | (13.4) | |||||||||||||||||||
Net cash provided by (used for) financing activities | (68.8) | (179.7) | (422.9) | (405.3) | |||||||||||||||||||
Reclassification of cash to assets held for sale | 0.5 | — | 0.5 | — | |||||||||||||||||||
Effects of exchange rates on cash | (4.8) | (2.9) | (1.7) | 4.4 | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 24.8 | 7.4 | 18.7 | 28.6 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 99.8 | 98.5 | 105.9 | 77.3 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 124.6 | $ | 105.9 | $ | 124.6 | $ | 105.9 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Global Industrial Packaging | $ | 951.6 | $ | 652.3 | $ | 3,316.7 | $ | 2,571.8 | |||||||||||||||
Paper Packaging & Services | 621.7 | 502.3 | 2,218.4 | 1,916.9 | |||||||||||||||||||
Land Management | 4.9 | 6.7 | 21.0 | 26.3 | |||||||||||||||||||
Total net sales | $ | 1,578.2 | $ | 1,161.3 | $ | 5,556.1 | $ | 4,515.0 | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Global Industrial Packaging | $ | 184.3 | $ | 130.8 | $ | 684.1 | $ | 522.8 | |||||||||||||||
Paper Packaging & Services | 109.8 | 98.8 | 401.3 | 382.7 | |||||||||||||||||||
Land Management | 2.0 | 2.1 | 7.6 | 9.2 | |||||||||||||||||||
Total gross profit | $ | 296.1 | $ | 231.7 | $ | 1,093.0 | $ | 914.7 | |||||||||||||||
Operating profit: | |||||||||||||||||||||||
Global Industrial Packaging | $ | 97.8 | $ | 58.9 | $ | 350.2 | $ | 225.4 | |||||||||||||||
Paper Packaging & Services | 41.9 | 30.7 | 131.0 | 71.0 | |||||||||||||||||||
Land Management | 1.8 | 2.2 | 104.0 | 8.5 | |||||||||||||||||||
Total operating profit | $ | 141.5 | $ | 91.8 | $ | 585.2 | $ | 304.9 | |||||||||||||||
EBITDA(10): | |||||||||||||||||||||||
Global Industrial Packaging | $ | 116.8 | $ | 80.5 | $ | 432.7 | $ | 307.0 | |||||||||||||||
Paper Packaging & Services | 78.8 | 68.5 | 269.9 | 225.9 | |||||||||||||||||||
Land Management | 2.5 | 3.6 | 107.3 | 13.0 | |||||||||||||||||||
Total EBITDA | $ | 198.1 | $ | 152.6 | $ | 809.9 | $ | 545.9 | |||||||||||||||
Adjusted EBITDA(11): | |||||||||||||||||||||||
Global Industrial Packaging | $ | 121.4 | $ | 74.1 | $ | 453.3 | $ | 324.3 | |||||||||||||||
Paper Packaging & Services | 87.7 | 77.4 | 302.0 | 306.4 | |||||||||||||||||||
Land Management | 2.2 | 3.0 | 8.9 | 11.9 | |||||||||||||||||||
Total Adjusted EBITDA | $ | 211.3 | $ | 154.5 | $ | 764.2 | $ | 642.6 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income | $ | 109.9 | $ | 48.0 | $ | 413.2 | $ | 124.3 | |||||||||||||||
Plus: Interest expense, net | 16.9 | 26.0 | 92.7 | 115.8 | |||||||||||||||||||
Plus: Income tax expense | 13.1 | 18.5 | 69.6 | 63.3 | |||||||||||||||||||
Plus: Depreciation, depletion and amortization expense | 58.2 | 60.1 | 234.4 | 242.5 | |||||||||||||||||||
EBITDA | $ | 198.1 | $ | 152.6 | $ | 809.9 | $ | 545.9 | |||||||||||||||
Net income | $ | 109.9 | $ | 48.0 | $ | 413.2 | $ | 124.3 | |||||||||||||||
Plus: Interest expense, net | 16.9 | 26.0 | 92.7 | 115.8 | |||||||||||||||||||
Plus: Income tax expense | 13.1 | 18.5 | 69.6 | 63.3 | |||||||||||||||||||
Plus: Other expense (income), net | 2.6 | (0.8) | 4.8 | 2.7 | |||||||||||||||||||
Plus: Non-cash pension settlement charges | 0.1 | 0.4 | 9.1 | 0.3 | |||||||||||||||||||
Plus: Equity earnings of unconsolidated affiliates, net of tax | (1.1) | (0.3) | (4.2) | (1.5) | |||||||||||||||||||
Operating profit | 141.5 | 91.8 | 585.2 | 304.9 | |||||||||||||||||||
Less: Other expense (income), net | 2.6 | (0.8) | 4.8 | 2.7 | |||||||||||||||||||
Less: Non-cash pension settlement charges | 0.1 | 0.4 | 9.1 | 0.3 | |||||||||||||||||||
Less: Equity earnings of unconsolidated affiliates, net of tax | (1.1) | (0.3) | (4.2) | (1.5) | |||||||||||||||||||
Plus: Depreciation, depletion and amortization expense | 58.2 | 60.1 | 234.4 | 242.5 | |||||||||||||||||||
EBITDA | $ | 198.1 | $ | 152.6 | $ | 809.9 | $ | 545.9 | |||||||||||||||
Plus: Restructuring charges | $ | 4.3 | $ | 11.9 | $ | 23.1 | $ | 38.7 | |||||||||||||||
Plus: Acquisition and integration related costs | 2.9 | 3.5 | 9.1 | 17.0 | |||||||||||||||||||
Plus: Non-cash asset impairment charges | 7.4 | 1.6 | 8.9 | 18.5 | |||||||||||||||||||
Plus: Non-cash pension settlement charges | 0.1 | 0.4 | 9.1 | 0.3 | |||||||||||||||||||
Plus: Incremental COVID-19 costs, net(12) | 0.7 | 0.7 | 3.3 | 2.6 | |||||||||||||||||||
Plus: (Gain) loss on disposal of properties, plants, equipment, and businesses, net | (2.2) | (16.2) | (3.5) | 19.6 | |||||||||||||||||||
Less: Timberland gains, net | — | — | 95.7 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 211.3 | $ | 154.5 | $ | 764.2 | $ | 642.6 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Global Industrial Packaging | |||||||||||||||||||||||
Operating profit | $ | 97.8 | $ | 58.9 | $ | 350.2 | $ | 225.4 | |||||||||||||||
Less: Other expense (income), net | 2.4 | (0.7) | 4.5 | 4.0 | |||||||||||||||||||
Less: Non-cash pension settlement charges | — | 0.4 | 0.3 | 0.4 | |||||||||||||||||||
Less: Equity earnings of unconsolidated affiliates, net of tax | (1.1) | (0.3) | (4.2) | (1.5) | |||||||||||||||||||
Plus: Depreciation and amortization expense | 20.3 | 21.0 | 83.1 | 84.5 | |||||||||||||||||||
EBITDA | $ | 116.8 | $ | 80.5 | $ | 432.7 | $ | 307.0 | |||||||||||||||
Plus: Restructuring charges | 2.5 | 8.1 | 17.1 | 28.8 | |||||||||||||||||||
Plus: Non-cash asset impairment charges | 1.2 | 1.5 | 2.7 | 6.0 | |||||||||||||||||||
Plus: Non-cash pension settlement charges | — | 0.4 | 0.3 | 0.4 | |||||||||||||||||||
Plus: Incremental COVID-19 costs, net | 0.5 | 0.1 | 1.8 | 0.7 | |||||||||||||||||||
Plus: Loss (gain) on disposal of properties, plants, equipment, and businesses, net | 0.4 | (16.6) | (1.3) | (18.6) | |||||||||||||||||||
Adjusted EBITDA | $ | 121.4 | $ | 74.0 | $ | 453.3 | $ | 324.3 | |||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Operating profit | $ | 41.9 | $ | 30.7 | $ | 131.0 | $ | 71.0 | |||||||||||||||
Less: Other expense (income), net | 0.2 | (0.1) | 0.3 | (1.3) | |||||||||||||||||||
Less: Non-cash pension settlement charges (income) | 0.1 | — | 8.8 | (0.1) | |||||||||||||||||||
Plus: Depreciation and amortization expense | 37.2 | 37.7 | 148.0 | 153.5 | |||||||||||||||||||
EBITDA | $ | 78.8 | $ | 68.5 | $ | 269.9 | $ | 225.9 | |||||||||||||||
Plus: Restructuring charges | 1.8 | 3.8 | 5.9 | 9.9 | |||||||||||||||||||
Plus: Acquisition and integration related costs | 2.9 | 3.5 | 9.1 | 17.0 | |||||||||||||||||||
Plus: Non-cash asset impairment charges | 5.0 | 0.1 | 5.0 | 12.5 | |||||||||||||||||||
Plus: Non-cash pension settlement charges (income) | 0.1 | — | 8.8 | (0.1) | |||||||||||||||||||
Plus: Incremental COVID-19 costs, net | 0.2 | 0.6 | 1.5 | 1.9 | |||||||||||||||||||
Plus: (Gain) loss on disposal of properties, plants, equipment, and businesses, net | (1.1) | 0.9 | 1.8 | 39.3 | |||||||||||||||||||
Adjusted EBITDA | $ | 87.7 | $ | 77.4 | $ | 302.0 | $ | 306.4 | |||||||||||||||
Land Management | |||||||||||||||||||||||
Operating profit | $ | 1.8 | $ | 2.2 | $ | 104.0 | $ | 8.5 | |||||||||||||||
Plus: Depreciation, depletion and amortization expense | 0.7 | 1.4 | 3.3 | 4.5 | |||||||||||||||||||
EBITDA | $ | 2.5 | $ | 3.6 | $ | 107.3 | $ | 13.0 | |||||||||||||||
Plus: Restructuring charges | — | — | 0.1 | — | |||||||||||||||||||
Plus: Non-cash asset impairment charges | 1.2 | — | 1.2 | — | |||||||||||||||||||
Plus: Gain on disposal of properties, plants, equipment, and businesses, net | (1.5) | (0.6) | (4.0) | (1.1) | |||||||||||||||||||
Less: Timberland gains, net | — | — | 95.7 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 2.2 | $ | 3.0 | $ | 8.9 | $ | 11.9 | |||||||||||||||
Consolidated EBITDA | $ | 198.1 | $ | 152.6 | $ | 809.9 | $ | 545.9 | |||||||||||||||
Consolidated Adjusted EBITDA | $ | 211.3 | $ | 154.4 | $ | 764.2 | $ | 642.6 |
Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net cash provided by operating activities | $ | 137.3 | $ | 200.4 | $ | 396.0 | $ | 454.7 | |||||||||||||||
Cash paid for purchases of properties, plants and equipment | (46.5) | (32.6) | (140.7) | (131.4) | |||||||||||||||||||
Free Cash Flow | $ | 90.8 | $ | 167.8 | $ | 255.3 | $ | 323.3 | |||||||||||||||
Cash paid for acquisition and integration related costs | 2.9 | 3.5 | 9.1 | 17.0 | |||||||||||||||||||
Cash paid for incremental COVID-19 costs, net | 0.7 | 0.7 | 3.3 | 2.6 | |||||||||||||||||||
Cash paid for acquisition and integration related ERP systems | 0.4 | 1.9 | 6.4 | 3.3 | |||||||||||||||||||
Adjusted Free Cash Flow | $ | 94.8 | $ | 173.9 | $ | 274.1 | $ | 346.2 |
(in millions, except for per share amounts) | Income before Income Tax Expense and Equity Earnings of Unconsolidated Affiliates, net | Income Tax (Benefit) Expense | Equity Earnings | Noncontrolling Interest | Net Income Attributable to Greif, Inc. | Diluted Class A Earnings Per Share | Tax Rate | |||||||||||||||||||||||||||||||
Three Months Ended October 31, 2021 | $ | 121.9 | $ | 13.1 | $ | (1.1) | $ | 5.4 | $ | 104.5 | $ | 1.74 | 10.7 | % | ||||||||||||||||||||||||
Restructuring charges | 4.3 | 0.7 | — | — | 3.6 | 0.07 | ||||||||||||||||||||||||||||||||
Acquisition and integration related costs | 2.9 | 0.7 | — | — | 2.2 | 0.04 | ||||||||||||||||||||||||||||||||
Non-cash asset impairment charges | 7.4 | 1.1 | — | — | 6.3 | 0.10 | ||||||||||||||||||||||||||||||||
Non-cash pension settlement charges | 0.1 | — | — | — | 0.1 | — | ||||||||||||||||||||||||||||||||
Incremental COVID-19 costs, net | 0.7 | 0.3 | — | — | 0.4 | 0.01 | ||||||||||||||||||||||||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (2.2) | (0.6) | — | 0.1 | (1.7) | (0.03) | ||||||||||||||||||||||||||||||||
Excluding Adjustments | $ | 135.1 | $ | 15.3 | $ | (1.1) | $ | 5.5 | $ | 115.4 | $ | 1.93 | 11.3 | % | ||||||||||||||||||||||||
Three Months Ended October 31, 2020 | $ | 66.2 | $ | 18.5 | $ | (0.3) | $ | 3.6 | $ | 44.4 | $ | 0.74 | 27.9 | % | ||||||||||||||||||||||||
Restructuring charges | 11.9 | 2.9 | — | 0.6 | 8.4 | 0.14 | ||||||||||||||||||||||||||||||||
Acquisition and integration related costs | 3.5 | 0.9 | — | — | 2.6 | 0.05 | ||||||||||||||||||||||||||||||||
Non-cash asset impairment charges | 1.6 | 0.4 | — | — | 1.2 | 0.02 | ||||||||||||||||||||||||||||||||
Non-cash pension settlement charges | 0.4 | — | — | — | 0.4 | 0.01 | ||||||||||||||||||||||||||||||||
Incremental COVID-19 costs, net | 0.7 | 0.3 | — | — | 0.4 | 0.01 | ||||||||||||||||||||||||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (16.2) | (5.2) | — | — | (11.0) | (0.19) | ||||||||||||||||||||||||||||||||
Excluding Adjustments | $ | 68.1 | $ | 17.8 | $ | (0.3) | $ | 4.2 | $ | 46.4 | $ | 0.78 | 26.1 | % | ||||||||||||||||||||||||
Twelve Months Ended October 31, 2021 | $ | 478.6 | $ | 69.6 | $ | (4.2) | $ | 22.5 | $ | 390.7 | $ | 6.54 | 14.5 | % | ||||||||||||||||||||||||
Restructuring charges | 23.1 | 5.2 | — | 1.3 | 16.6 | 0.26 | ||||||||||||||||||||||||||||||||
Acquisition and integration related costs | 9.1 | 2.2 | — | — | 6.9 | 0.12 | ||||||||||||||||||||||||||||||||
Non-cash asset impairment charges | 8.9 | 1.6 | — | 0.1 | 7.2 | 0.12 | ||||||||||||||||||||||||||||||||
Non-cash pension settlement charges | 9.1 | 2.1 | — | — | 7.0 | 0.12 | ||||||||||||||||||||||||||||||||
Incremental COVID-19 costs, net | 3.3 | 0.9 | — | 0.3 | 2.1 | 0.04 | ||||||||||||||||||||||||||||||||
Gain on disposal of properties, plants, equipment and businesses, net | (3.5) | (0.3) | — | 0.1 | (3.3) | (0.06) | ||||||||||||||||||||||||||||||||
Timberland gains, net | (95.7) | (3.0) | — | — | (92.7) | (1.54) | ||||||||||||||||||||||||||||||||
Excluding Adjustments | $ | 432.9 | $ | 78.3 | $ | (4.2) | $ | 24.3 | $ | 334.5 | $ | 5.60 | 18.1 | % | ||||||||||||||||||||||||
Twelve Months Ended October 31, 2020 | $ | 186.1 | $ | 63.3 | $ | (1.5) | $ | 15.5 | $ | 108.8 | $ | 1.83 | 34.0 | % | ||||||||||||||||||||||||
Restructuring charges | 38.7 | 9.0 | — | 1.0 | 28.7 | 0.48 | ||||||||||||||||||||||||||||||||
Acquisition and integration related costs | 17.0 | 4.1 | — | — | 12.9 | 0.22 | ||||||||||||||||||||||||||||||||
Non-cash asset impairment charges | 18.5 | 3.9 | — | — | 14.6 | 0.25 | ||||||||||||||||||||||||||||||||
Non-cash pension settlement charges | 0.3 | — | — | — | 0.3 | 0.01 | ||||||||||||||||||||||||||||||||
Incremental COVID-19 costs, net | 2.6 | 0.7 | — | — | 1.9 | 0.03 | ||||||||||||||||||||||||||||||||
Loss on disposal of properties, plants, equipment and businesses, net | 19.6 | (4.7) | — | 0.6 | 23.7 | 0.40 | ||||||||||||||||||||||||||||||||
Excluding Adjustments | $ | 282.8 | $ | 76.3 | $ | (1.5) | $ | 17.1 | $ | 190.9 | $ | 3.22 | 27.0 | % |
Three Months Ended October 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Increase (Decrease) in Net Sales ($) | Increase (Decrease) in Net Sales (%) | |||||||||||||||||||
Consolidated | |||||||||||||||||||||||
Net Sales | $ | 1,578.2 | $ | 1,161.3 | $ | 416.9 | 35.9 | % | |||||||||||||||
Currency Translation | 7.7 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 1,570.5 | $ | 1,161.3 | $ | 409.2 | 35.2 | % | |||||||||||||||
Global Industrial Packaging | |||||||||||||||||||||||
Net Sales | $ | 951.6 | $ | 652.3 | $ | 299.3 | 45.9 | % | |||||||||||||||
Currency Translation | 7.3 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 944.3 | $ | 652.3 | $ | 292.0 | 44.8 | % | |||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Net Sales | $ | 621.7 | $ | 502.3 | $ | 119.4 | 23.8 | % | |||||||||||||||
Currency Translation | 0.4 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 621.3 | $ | 502.3 | $ | 119.0 | 23.7 | % |
Twelve Months Ended October 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Increase in Net Sales ($) | Increase in Net Sales (%) | |||||||||||||||||||
Consolidated | |||||||||||||||||||||||
Net Sales | $ | 5,556.1 | $ | 4,515.0 | $ | 1,041.1 | 23.1 | % | |||||||||||||||
Currency Translation | 82.7 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 5,473.4 | $ | 4,515.0 | $ | 958.4 | 21.2 | % | |||||||||||||||
Global Industrial Packaging | |||||||||||||||||||||||
Net Sales | $ | 3,316.7 | $ | 2,571.8 | $ | 744.9 | 29.0 | % | |||||||||||||||
Currency Translation | 80.3 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 3,236.4 | $ | 2,571.8 | $ | 664.6 | 25.8 | % | |||||||||||||||
Paper Packaging & Services | |||||||||||||||||||||||
Net Sales | $ | 2,218.4 | $ | 1,916.9 | $ | 301.5 | 15.7 | % | |||||||||||||||
Currency Translation | 2.4 | N/A | |||||||||||||||||||||
Net Sales Excluding the Impact of Currency Translation | $ | 2,216.0 | $ | 1,916.9 | $ | 299.1 | 15.6 | % |
(in millions) | October 31, 2021 | July 31, 2021 | October 31, 2020 | ||||||||||||||
Total Debt | $ | 2,225.6 | $ | 2,267.6 | $ | 2,487.0 | |||||||||||
Cash and cash equivalents | (124.6) | (99.8) | (105.9) | ||||||||||||||
Net Debt | $ | 2,101.0 | $ | 2,167.8 | $ | 2,381.1 |
Trailing Twelve Month Credit Agreement EBITDA (in millions) | Trailing Twelve Months Ended 10/31/2021 | Trailing Twelve Months Ended 10/31/2020 | ||||||
Net income | $ | 413.2 | $ | 124.3 | ||||
Plus: Interest expense, net | 92.7 | 115.8 | ||||||
Plus: Income tax expense | 69.6 | 63.3 | ||||||
Plus: Depreciation, depletion and amortization expense | 234.4 | 242.5 | ||||||
EBITDA | $ | 809.9 | $ | 545.9 | ||||
Plus: Restructuring charges | 23.1 | 38.7 | ||||||
Plus: Acquisition and integration related costs | 9.1 | 17.0 | ||||||
Plus: Non-cash asset impairment charges | 8.9 | 18.5 | ||||||
Plus: Non-cash pension settlement charges | 9.1 | 0.3 | ||||||
Plus: Incremental COVID-19 costs, net | 3.3 | 2.6 | ||||||
Plus: (Gain) loss on disposal of properties, plants, equipment, and businesses, net | (3.5) | 19.6 | ||||||
Less: Timberland gains, net | 95.7 | — | ||||||
Adjusted EBITDA | $ | 764.2 | $ | 642.6 | ||||
Credit Agreement adjustments to EBITDA(15) | 33.6 | (4.3) | ||||||
Credit Agreement EBITDA | $ | 797.8 | $ | 638.3 | ||||
Adjusted Net Debt (in millions) | For the Period Ended 10/31/2021 | For the Period Ended 10/31/2020 | ||||||
Total debt | $ | 2,225.6 | $ | 2,487.0 | ||||
Cash and cash equivalents | (124.6) | (105.9) | ||||||
Net debt | $ | 2,101.0 | $ | 2,381.1 | ||||
Credit Agreement adjustments to debt(16) | (115.9) | (47.3) | ||||||
Adjusted net debt | $ | 1,985.1 | $ | 2,333.8 | ||||
Leverage Ratio | 2.49x | 3.66x |
Fiscal 2022 Guidance Range | |||||||||||
(in millions) | Scenario 1 | Scenario 2 | |||||||||
Net cash provided by operating activities | $ | 536.0 | $ | 612.0 | |||||||
Cash paid for purchases of properties, plants and equipment | (150.0) | (170.0) | |||||||||
Free cash flow | $ | 386.0 | $ | 442.0 | |||||||
Cash paid for acquisition and integration related costs | 10.0 | 12.0 | |||||||||
Cash paid for acquisition and integration related ERP systems | 4.0 | 6.0 | |||||||||
Adjusted free cash flow | $ | 400.0 | $ | 460.0 |
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