KapStone Paper and Packaging Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016
February 08, 2017 at 09:16 pm
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KapStone Paper and Packaging Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company's net sales were $777.5 million compared with $764.2 million a year ago, reflecting higher volumes in the paper and packaging segment as 724,000 tons of paper were shipped during the fourth quarter of 2016 compared to 658,000 tons a year earlier. Operating income was $37.5 million compared with $28.8 million a year ago. Financial performance in the current quarter improved mainly due to higher sales volumes, lower planned maintenance costs, lower compensation and benefit costs and a reduction in the fair value of the contingent consideration for the Victory Packaging acquisition. These factors were partially offset by lower selling prices, the impact of Hurricane Matthew and a non-cash charge for withdrawing from a multiemployer pension plan. Income before provision for income taxes was $27.2 million compared with $18.1 million a year ago. Net income was $18.3 million or $0.19 per diluted share compared with $11.8 million or $0.12 per diluted share a year ago. EBITDA was $84.0 million compared with $74.93 million a year ago. Adjusted EBITDA was $91.8 million compared with $81.6 million a year ago. Adjusted net income was $23.2 million or $0.24 per diluted share compared with $16.2 million or $0.17 per diluted share a year ago. Net cash provided by operating activities was $69.5 million compared with $85.8 million a year ago. Purchase of intangible assets was $0.5 million. Capital expenditures were $27.6 million compared with $31.9 million a year ago.
For the year, the company's net sales were $3,077.3 million compared with $2,789.3 million a year ago. The increase was due to twelve months of Victory Packaging results in 016 compared to seven months in 2015, partially offset by lower selling prices and a less favorable product mix. Operating income was $170.6 million compared with $199.2 million a year ago. The decrease was due to lower selling prices, a less favorable product mix, higher depreciation charges, the impact of Hurricane Matthew and a non-cash charge for withdrawing from a multiemployer pension plan. These factors were partially offset by twelve months of operating results for Victory Packaging and related synergies with KapStone's mill and plant system, the cost associated with the 2015 Longview mill work stoppage, lower incentive compensation due to lower earnings and lower benefit costs. Income before provision for income taxes was $128.2 million compared with $161.6 million a year ago. Net income was $86.3 million or $0.88 per diluted share compared with $106.4 million or $1.09 per diluted share a year ago. EBITDA was $350.5 million compared with $357.6 million a year ago. Adjusted EBITDA was $384.2 million compared with $404.4 million a year ago. Adjusted net income was $107.4 million or $1.10 per diluted share compared with $137.4 million or $1.41 per diluted share a year ago. Net cash provided by operating activities was $281.9 million compared with $262.5 million a year ago. Purchase of intangible assets was $2.5 million. Capital expenditures were $126.9 million compared with $126.8 million a year ago.
Westrock Paper and Packaging, LLC is a United States-based fiber-based paper and packaging company. The Company provides products, such as corrugated solutions, which include corrugated containers and merchandising displays; consumer packaging solutions, such as folding cartons, and specialty printing and packaging, and paper solutions, such as containerboard, kraft paper, paper board, and pulp. It caters to markets, such as beauty and personal care products, beverage, commercial print, Electronic commerce, food, food service, healthcare, home & garden, luxury packaging, media & electronics, retail, and tobacco industry.