PART I. FINANCIAL INFORMATION
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
Three Months Nine Months
Ended July 31, Ended July 31,
1997 1996 1997 1996
Net sales $167,062 $155,994 $471,961 $474,949
Other income:
Interest and other 1,698 1,535 8,814 3,563
Gain on timber sales 3,781 3,084 7,378 6,081
172,541 160,613 488,153 484,593
Costs and expenses:
Cost of products sold 144,869 128,865 411,119 389,460
Selling, general and administrative 19,275 16,116 54,299 50,882
Interest 1,063 196 2,736 710
165,207 145,177 468,154 441,052
Income before income taxes 7,334 15,436 19,999 43,541
Taxes on income 2,652 5,800 7,252 16,500
Net income $ 4,682 $ 9,636 $ 12,747 $ 27,041
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 $ .18 $ .40 $ .44 $1.08
Class B Common Stock $ .24 $ .44 $ .67 $1.27
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
July 31, October 31,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $ 15,378 $ 26,560
Canadian government securities 8,255 19,479
Trade accounts receivable--less allowance
of $882 for doubtful items ($826 in 1996) 74,632 73,987
Inventories 54,635 49,290
Prepaid expenses and other 23,112 16,131
Total current assets 176,012 185,447
LONG TERM ASSETS
Cash surrender value of life insurance 3,163 2,982
Goodwill -- less amortization 15,513 4,617
Other long term assets 12,426 7,116
31,102 14,715
PROPERTIES, PLANTS AND EQUIPMENT--at cost
Timber properties--less depletion 6,204 6,112
Land 11,675 10,771
Buildings 131,473 125,132
Machinery, equipment, etc. 401,683 385,834
Construction in progress 58,007 33,450
Less accumulated depreciation (264,287) (249,123)
344,755 312,176
$551,869 $512,338
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 32,516 $ 31,609
Current portion of long term obligations 27,790 2,455
Accrued payrolls and employee benefits 6,935 8,989
Accrued taxes--general 1,433 1,949
Taxes on income 3,659 5,678
Total current liabilities 72,333 50,680
LONG-TERM OBLIGATIONS 38,504 22,748
OTHER LONG-TERM LIABILITIES 15,681 15,406
DEFERRED INCOME TAXES 26,768 22,872
Total long-term liabilities 80,953 61,026
SHAREHOLDERS' EQUITY (Note 1)
Capital stock, without par value 9,192 9,034
Class A Common Stock:
Authorized 32,000,000 shares;
issued 21,140,960 shares;
outstanding 10,878,672 shares
(10,873,172 in 1996)
Class B Common Stock:
Authorized and issued 17,280,000 shares;
outstanding 12,001,793 shares
Treasury Stock, at cost (41,891) (41,867)
Class A Common Stock: 10,262,288 shares
(10,267,788 in 1996)
Class B Common Stock: 5,278,207 shares
Retained earnings 435,679 436,672
Cumulative translation adjustment (4,397) (3,207)
398,583 400,632
$551,869 $512,338
<FN>
See accompanying Notes to the Consolidated Financial Statements.
GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the nine months ended July 31, 1997 1996
Cash flows from operating activities:
Net income $12,747 $27,041
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 23,771 19,360
Deferred income taxes 3,907 4,786
Increase (decrease) in cash from changes in
certain assets and liabilities, net of effects
from acquisitions:
Trade accounts receivable 6,181 14,081
Inventories (83) 17,700
Prepaid expenses and other (6,667) 2,207
Other long-term assets (4,786) 373
Accounts payable (3,065) (12,504)
Accrued payrolls and employee benefits (2,437) (2,786)
Accrued taxes - general (535) (238)
Taxes on income (2,055) 4,267
Other long-term liabilities (1,929) 457
Net cash provided by operating activities 25,049 74,744
Cash flows from investing activities:
Acquisitions of companies, net of cash
acquired (7,514) (479)
Net sales of investments in government
securities 11,224 135
Purchase of properties, plants and equipment (34,464) (49,027)
Net cash used by investing activities (30,754) (49,371)
Cash flows from financing activities:
Net proceeds (payments) on long-term debt 9,091 (2,548)
Acquisition of treasury stock (24) --
Exercise of stock options 158 --
Dividends paid (13,740) (11,430)
Net cash used by financing activities (4,515) (13,978)
Foreign currency translation adjustment (962) (815)
Net (decrease) increase in cash and cash
equivalents (11,182) 10,580
Cash and cash equivalents at beginning of
period 26,560 31,612
Cash and cash equivalents at end of period $15,378 $42,192
<FN>
See accompanying Notes to the Consolidated Financial Statements.