PART I. FINANCIAL INFORMATION
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
For the three months ended January 31, 1997 1996
Net sales $152,370 $159,743
Other income:
Interest and other 2,467 855
Gain on timber sales 1,539 1,891
156,376 162,489
Costs and expenses (including depreciation of
$7,594 in 1997 and $6,523 in 1996):
Cost of products sold 131,329 127,434
Selling, general and administrative 17,212 17,285
Interest 750 244
149,291 144,963
Income before income taxes 7,085 17,526
Taxes on income 2,600 6,700
Net income $ 4,485 $ 10,826
Net income per share (based on the average number of shares
outstanding during the period):
Based on the assumption that earnings were allocated to Class A
and Class B Common Stock to the extent that dividends were actually
paid for the year and the remainder were allocated as they would be
received by shareholders in the event of liquidation, that is, equally
to Class A and Class B shares, share and share alike:
Class A Common Stock $0.14 $0.41
Class B Common Stock $0.25 $0.52
Due to the special characteristics of the Company's two
classes of stock (see Note 1), earnings per share can be
calculated upon the basis of varying assumptions, none of which,
in the opinion of management, would be free from the claim that
it fails fully and accurately to represent the true interest of
the shareholders of each class of stock and in the retained
earnings.
<FN>
See accompanying Notes to Consolidated Financial Statements.
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
January 31, October 31,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $ 22,048 $ 26,560
Canadian government securities 19,273 19,479
Trade accounts receivable--less allowance
of $836 for doubtful items ($826 in 1996) 70,500 73,987
Inventories 50,148 49,290
Prepaid expenses and other 15,944 16,131
Total current assets 177,913 185,447
LONG TERM ASSETS
Cash surrender value of life insurance 3,020 2,982
Goodwill--less amortization 12,198 4,617
Other long term assets 7,333 7,116
22,551 14,715
PROPERTIES, PLANTS AND EQUIPMENT--at cost
Timber properties--less depletion 6,159 6,112
Land 10,950 10,771
Buildings 127,631 125,132
Machinery, equipment, etc. 389,846 385,834
Construction in progress 44,471 33,450
Less accumulated depreciation (256,147) (249,123)
322,910 312,176
$523,374 $512,338
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 25,085 $ 31,609
Current portion of long term obligations 16,357 2,455
Accrued payrolls and employee benefits 6,434 8,989
Accrued taxes--general 1,346 1,949
Taxes on income 5,244 5,678
Total current liabilities 54,466 50,680
LONG TERM OBLIGATIONS 32,153 22,748
OTHER LONG TERM LIABILITIES 14,505 15,406
DEFERRED INCOME TAXES 24,194 22,872
Total long term liabilities 70,852 61,026
SHAREHOLDERS' EQUITY (Note 1)
Capital stock, without par value 9,034 9,034
Class A Common Stock:
Authorized 32,000,000 shares;
issued 21,140,960 shares;
outstanding 10,873,172 shares
Class B Common Stock:
Authorized and issued 17,280,000 shares;
outstanding 12,001,793 shares
Treasury Stock, at cost (41,867) (41,867)
Class A Common Stock: 10,267,788 shares
Class B Common Stock: 5,278,207 shares
Retained earnings 434,347 436,672
Cumulative translation adjustment (3,458) (3,207)
398,056 400,632
$523,374 $512,338
<FN>
See accompanying Notes to Consolidated Financial Statements.
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the three months ended January 31, 1997 1996
Cash flows from operating activities:
Net income $ 4,485 $10,826
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 7,986 6,523
Deferred income taxes 1,325 1,612
Increase (decrease) in cash from changes in certain
assets and liabilities, net of effects from acquisitions:
Trade accounts receivable 5,233 8,075
Inventories (576) 5,820
Prepaid expenses and other 253 413
Other long term assets (255) 221
Accounts payable (6,621) (13,926)
Accrued payrolls and employee benefits (2,659) (973)
Accrued taxes - general (611) (503)
Taxes on income (451) 3,673
Other long term liabilities (901) 368
Net cash provided by operating activities 7,208 22,129
Cash flows from investing activities:
Acquisitions of companies, net of cash acquired 134 -0-
Disposals (purchases) of investments in government
securities 206 724
Purchases of properties, plants and equipment (15,354) (12,375)
Net cash used by investing activities (15,014) (11,651)
Cash flows from financing activities:
Proceeds (payments) on long term debt 10,307 (71)
Dividends paid (6,810) (6,810)
Net cash used by financing activities 3,497 (6,881)
Foreign currency translation adjustment (203) (788)
Net (decrease) increase in cash and cash equivalents (4,512) 2,809
Cash and cash equivalents at beginning of period 26,560 31,612
Cash and cash equivalents at end of period $22,048 $34,421
<FN>
See accompanying Notes to Consolidated Financial Statements.