Greif, Inc. Class A (NYSE: GEF) stock lost over 0.3% in the pre market session of June 6th, 2019 (as of 8:34 am GMT-4; Source: Google finance) after the company posted mixed results for the second quarter of FY 19.
The company has reported the net income of $13.6 million decreased compared to net income of $45.1 million. Net income, excluding the impact of adjustments, is of $47.6 million increased compared to net income, excluding the impact of adjustments, of $44.7 million. The company’s adjusted EBITDA increased by $38.7 million to $162.0 million. Net cash provided by operating activities increased by $4.0 million to $62.2 million. The company’s adjusted Free Cash Flow increased by $16.2 million to $46.1 million.
Meanwhile, the company has completed the acquisition of Caraustar Industries, Inc., on February 11, 2019 and included the results of Caraustar in the Company’s financial results under the Paper Packaging & Services segment since that date. Further, the company has identified $15 million of new estimated run-rate synergies related to the Caraustar acquisition. The company now expects that it will be able to achieve at least $60 million of run rate synergies over the 36 months from deal close.
GEF in the second quarter of FY 19 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents. The company had reported the adjusted revenue of $1.21 billion in the second quarter of FY 19, slightly missing the analysts’ estimates for revenue of $1.23 billion. Second quarter Adjusted EBITDA increased by about 31 percent compared to the prior year quarter, while Class A earnings per share, excluding the impact of adjustments, increased by more than 6.5 percent.
Moreover, for Rigid Industrial Packaging & Services, the net sales declined by $31.1 million to $631.6 million. For Paper Packaging & Services, the net sales grew by $283.7 million to $497.6 million. For Flexible Products & Services, the net sales fell by $7.1 million to $77.0 million. For Land Management, the net sales fell by $0.5 million to $7.1 million.
Additionally, GEF has declared quarterly cash dividends of $0.44 per share of Class A Common Stock and $0.66 per share of Class B Common Stock. The dividends are payable on July 1, 2019, to stockholders of record at the close of business on June 18, 2019.
For the second quarter of 2019, the company expects Class A earnings per share before special items to be in the range of $3.70 – $4.00 and Adjusted Free Cash Flow is expected to be in the range of $230 – $250