Business Context and Reporting Period
Company: Greif Bros. Corporation (Greif, Inc.)
Filing Type: Form 10-K Annual Report
Period Ended: October 31, 1994
Business Overview: The Company manufactures and sells a wide variety of industrial packaging products, including steel drums, fibre drums, plastic drums, corrugated containers, honeycomb, and wood cut stock. Operations are conducted through numerous facilities across the United States and Canada. The Company also owns approximately 319,000 acres of timber tracts.
Key Financial Metrics
Note: Specific revenue, net income, and cash flow totals are incorporated by reference from the 1994 Annual Report to Shareholders and are not explicitly stated in the provided text. The following metrics are derived from the Financial Statement Schedules included in the filing.
- Capital Expenditures (Additions to PP&E): $90.8 million for the fiscal year ended October 31, 1994.
- Depreciation, Depletion, and Amortization: $21.8 million for the fiscal year ended October 31, 1994.
- Maintenance and Repairs: $24.6 million for the fiscal year ended October 31, 1994.
- Other Taxes (Payroll, Real Estate, etc.): $14.4 million for the fiscal year ended October 31, 1994.
- Allowance for Doubtful Accounts: Total reserves increased to $1.686 million at year-end.
- Marketable Securities: Held approximately $24.0 million in U.S. Treasury Notes and Government of Canada Securities.
- Loans to Officers/Directors: Total receivables from related parties decreased to $2.67 million at year-end.
Material Changes and Operational Data
- Asset Growth: Consolidated Properties, Plants, and Equipment (at cost) increased from $382.9 million in 1993 to $420.0 million in 1994, driven primarily by $75.1 million in additions to Machinery & Equipment and $11.8 million in Buildings.
- Related Party Transactions: The Company reduced its total loans to officers and directors from $3.03 million in 1993 to $2.67 million in 1994, with collections totaling $575,437 during the year.
- Executive Compensation: CEO Michael J. Gasser received a salary of $143,166 and a bonus of $99,999 for 1994. Significant deferred compensation and stock option arrangements exist for directors Robert C. Macauley and Charles R. Chandler (Virginia Fibre Corporation).
Risks, Contingencies, and Management Commentary
- Environmental Liability (Strother Field Plant): The Company faces a potential environmental remediation liability at its Winfield, Kansas facility. Estimated costs range up to $3.0 million under extreme assumptions, with $2.0 million attributed to soil pollution. Due to uncertainty regarding the final remedy and the extent of pollution, the Company has not recorded a reserve as of October 31, 1994.
- Legal Proceedings: No pending material legal proceedings. The Company is generally classified as a "de minimis" participant in environmental cases, with no sanctions exceeding $100,000 except for the Kansas situation noted above.
- Stock Performance: As of 1994, the Company's stock performance index stood at 105 (1989 base), compared to 139 for the S&P 500 and 126 for the Peer Index.
- Dividends: The Company generally pays five dividends per fiscal year. Specific amounts for 1994 are referenced in the Annual Report but not detailed in this text.
Investor Verification Checklist
- Revenue and Profitability: Verify total revenue, net income, and earnings per share in the 1994 Annual Report to Shareholders (pages 14-20), as these figures are not present in the 10-K text provided.
- Environmental Exposure: Monitor the status of the Kansas Department of Health and Environment's remedial plan for the Strother Field plant to determine if the $3.0 million estimate will materialize.
- Capital Allocation: Review the $90.8 million in capital expenditures to understand the strategic focus of new machinery and building investments.
- Related Party Loans: Confirm the repayment schedule and interest rates for the remaining $2.67 million in loans to officers and directors.
- Dividend History: Consult page 15 of the 1994 Annual Report for the specific dividend amounts paid during the fiscal year.