We operate in three reportable business segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management.
Recently Issued and Newly Adopted Accounting Standards
The following table sets forth EBITDA and Adjusted EBITDA for our business segments, reconciled to the operating profit for each segment, for the three months ended April 30, 2022 and 2021:
Selling, General and Administrative Expenses
•Selling prices, product mix, customer demand and sales volumes;
•Raw material costs, primarily steel, resin, containerboard and used industrial packaging for reconditioning;
•Energy and transportation costs;
•Benefits from executing the Greif Business System;
•Acquisition of businesses and facilities;
•Divestiture of businesses and facilities; and
•Impact of foreign currency translation.
higher raw material costs. Gross profit margin was 19.1 percent and 21.3 percent for the three months ended April 30, 2022 and 2021, respectively.
•Selling prices, product mix, customer demand and sales volumes;
•Raw material costs, primarily old corrugated containers;
•Energy and transportation costs;
•Benefits from executing the Greif Business System;
•Acquisition of businesses and facilities;
•Divestiture of businesses and facilities.
Gross profit was $150.8 million for the second quarter of 2022 compared with $93.9 million for the second quarter of 2021. The $56.9 million increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation, labor and utility costs. Gross profit margin was 21.9 percent and 17.5 percent for the second quarter of 2022 and 2021, respectively.
As of April 30, 2022, our Land Management segment consisted of approximately 175,000 acres of timber properties in the southeastern United States. Key factors influencing profitability in the Land Management segment are:
•Planned level of timber sales;
•Selling prices and customer demand;
•Gains on timberland sales; and
•Gains on the disposal of development, surplus and HBU properties ("special use property").
Net sales were $6.3 million for the second quarter of 2022 compared with $5.6 million for the second quarter of 2021.
Gross profit was $2.6 million for the second quarter of 2022 compared with $1.9 million for the second quarter of 2021.
Operating profit decreased to $2.0 million for the second quarter of 2022 compared with $96.9 million for the second quarter of 2021. During the second quarter of 2021, we completed the sale of approximately 69,200 acres of timberlands in southwest
Alabama (the "2021 Timberland Sale") which resulted in timberland gains of $95.7 million. Adjusted EBITDA was $2.7 million and $2.1 million for the second quarter of 2022 and 2021, respectively.
•Surplus property, meaning land that cannot be efficiently or effectively managed by us, whether due to parcel size, lack of productivity, location, access limitations or for other reasons;
•HBU property, meaning land that in its current state has a higher market value for uses other than growing and selling timber;
•Development property, meaning HBU land that, with additional investment, may have a significantly higher market value than its HBU market value; and
•Core timberland, meaning land that is best suited for growing and selling timber.
As of April 30, 2022, we had approximately 18,800 acres of special use property in the United States.
Other Comprehensive Income (Loss) Changes
The following table sets forth EBITDA and Adjusted EBITDA for our business segments, reconciled to the operating profit for each segment, for the six months ended April 30, 2022 and 2021:
Selling, General and Administrative Expenses
Net sales were $11.5 million for the first six months of 2022 compared with $11.9 million for the first six months of 2021.
Gross profit was $4.4 million for the first six months of 2022 compared with $4.2 million for the first six months of 2021.
Other Comprehensive Income (Loss) Changes
© Edgar Online, source Glimpses