PART I. FINANCIAL INFORMATION
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
Three Months Ended April 30, Six Months Ended April 30,
1997 1996 1997 1996
Net sales $152,529 $159,212 $304,899 $318,955
Other income:
Interest and other 4,649 1,173 7,116 2,028
Gain on timber sales 2,058 1,106 3,597 2,997
159,236 161,491 315,612 323,980
Costs and expenses (including depreciation of
$14,305 in 1997 and $13,063 in 1996):
Cost of products sold 134,921 133,161 266,250 260,595
Selling, general 17,812 17,481 35,024 34,766
and administrative
Interest 923 270 1,673 514
153,656 150,912 302,947 295,875
Income before income taxes 5,580 10,579 12,665 28,105
Taxes on income 2,000 4,000 4,600 10,700
Net income $ 3,580 $ 6,579 $ 8,065 $ 17,405
Earnings 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 wereactually 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 $ .12 $ .27 $ .26 $ .68
Class B Common Stock $ .18 $ .31 $ .43 $ .83
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 the Consolidated Financial Statements.
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
April 30, October 31,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $ 19,068 $ 26,560
Canadian government securities 15,691 19,479
Trade accounts receivable--less allowance
of $828 for doubtful items ($826 in 1996) 68,461 73,987
Inventories 52,469 49,290
Prepaid expenses and other 16,654 16,131
Total current assets 172,343 185,447
LONG TERM ASSETS
Cash surrender value of life insurance 3,028 2,982
Goodwill - less amortization 14,699 4,617
Other long term assets 7,697 7,116
25,424 14,715
PROPERTIES, PLANTS AND EQUIPMENT--at cost
Timber properties--less depletion 6,159 6,112
Land 10,815 10,771
Buildings 130,595 125,132
Machinery, equipment, etc. 390,139 385,834
Construction in progress 50,802 33,450
Less accumulated depreciation (256,526) (249,123)
331,984 312,176
$529,751 $512,338
CURRENT LIABILITIES
Accounts payable $ 26,574 $ 31,609
Current portion of long term obligations 18,317 2,455
Accrued payrolls and employee benefits 7,373 8,989
Accrued taxes--general 1,023 1,949
Taxes on income 634 5,678
Total current liabilities 53,921 50,680
LONG TERM OBLIGATIONS 39,609 22,748
OTHER LONG TERM LIABILITIES 13,943 15,406
DEFERRED INCOME TAXES 25,510 22,872
Total long term liabilities 79,062 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 434,462 436,672
Cumulative translation adjustment (4,861) (3,207)
396,768 400,632
$529,751 $512,338
<FN>
See accompanying Notes to the Consolidated Statements.
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the six months ended April 30, 1997 1996
Cash flows from operating activities:
Net income $ 8,065 $17,405
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 14,916 13,063
Deferred income taxes 2,654 3,659
Increase (decrease) in cash from changes in
certain assets and liabilities, net of
effects from acquisitions:
Trade accounts receivable 8,912 12,508
Inventories (208) 11,078
Prepaid expenses and other (436) 287
Other long term assets (577) (99)
Accounts payable (5,980) (9,241)
Accrued payrolls and employee benefits (1,911) (1,654)
Accrued taxes - general (935) (674)
Taxes on income (5,061) (229)
Other long term liabilities
Net cash provided by operating activities 17,976 44,252
Cash flows from investing activities:
Acquisitions of companies, net of cash
acquired (5,188) (479)
Net disposals of investments in
government securities 3,788 311
Purchase of properties, plants and
equipment (22,224) (30,452)
Net cash used by investing activities (23,624) (30,620)
Cash flows from financing activities:
Net proceeds (payments) on long term debt 9,723 (1,443)
Dividends paid (10,275) (9,120)
Net cash used by financing activities (552) (10,563)
Foreign currency translation adjustment (1,292) (481)
Net increase (decrease) in cash and
cash equivalents (7,492) 2,588
Cash and cash equivalents at beginning
of period 26,560 31,612
Cash and cash equivalents at end of period $19,068 $34,200
<FN>
See accompanying Notes to Consolidated Financial Statements.