Second Quarter Financial Highlights include (all results compared to the second quarter of 2020 unless otherwise noted)(1):
*Net income of $149.8 million or $2.51 per diluted Class A share increased compared to net income of $11.4 million or $0.19 per diluted Class A share. Net income, excluding the impact of adjustments(2), of $67.3 million or $1.13 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $56.5 million or $0.95 per diluted Class A share. Adjusted EBITDA(3) decreased by $4.7 million to $176.6 million.
*Net cash provided by operating activities increased by $52.5 million to a source of $152.3 million. Adjusted free cash flow(4) increased by $47.7 million to a source of $126.7 million.
*Total debt decreased by $368.9 million to $2,313.4 million. Net debt(5) decreased by $406.9 million to $2,203.0 million and decreased by $235.0 million sequentially from the first quarter of 2021. The Company’s leverage ratio(6) decreased to 3.2x compared to 3.6x.
Strategic Actions and Announcements
*Completed the sale of approximately 69,200 acres of timberlands in southwest Alabama to Weyerhaeuser Company (NYSE: WY) for approximately $149.0 million in cash.
*Achieved record Intermediate Bulk Container (IBC) volume, reflecting strong market demand.
*Reintroduced annual guidance given better visibility into the remainder of the fiscal year and continued confidence in the improving fundamentals of our business.
*Published Greif’s 12th consecutive sustainability report highlighting the Company’s commitments to environmental, social and governance (ESG) principles and key metrics. Also announced a new science-aligned goal to reduce the Company’s Scope 1 and 2 greenhouse gas emissions by 28% by 2030, versus a 2019 baseline.
“Greif delivered a strong second quarter, with solid results across the company and meaningful progress against our strategy,” said Pete Watson, Greif’s President and Chief Executive Officer. “In addition to strong underlying business performance that drove improved earnings and free cash flow, we enhanced colleague engagement and customer service levels, advanced our commitment to sustainability and achieved a notable reduction in our leverage. With improved visibility into customer demand patterns, we are reintroducing annual guidance for fiscal 2021 and are well positioned to benefit from a growing global economy.”