KapStone Paper and Packaging Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $868,418,000 compared to $776,636,000 a year ago. This increase was due to $57 million of higher prices and a more favorable product mix, and higher volume in the paper and packaging segment. Operating income was $59,745,000 compared to $55,008,000 a year ago. Income before provision for income taxes was $45,036,000 compared to $43,638,000 a year ago. Net income was $30,026,000 or $0.30 per diluted share compared to $31,018,000 or $0.32 per diluted share a year ago. EBITDA (non-GAAP) was $107,662,000 compared to $98,740,000 a year ago. Adjusted EBITDA (non-GAAP) was $120,721,000 compared to $107,579,000 a year ago. Adjusted net income (non-GAAP) was $38,188,000 or $0.39 per diluted share compared to $36,542,000 or $0.37 per diluted share a year ago. Net cash provided by operating activities was $126,422,000 compared to $122,762,000 a year ago. Capital expenditures were $34,234,000 compared to $26,873,000 a year ago.

For the nine months, the company reported net sales of $2,456,978,000 compared to $2,299,762,000 a year ago. Operating income was $121,064,000 compared to $133,121,000 a year ago. Income before provision for income taxes was $85,106,000 compared to $100,959,000 a year ago. Net income was $55,794,000 or $0.57 per diluted share compared to $67,914,000 or $0.70 per diluted share a year ago. EBITDA (non-GAAP) was $262,175,000 compared to $266,452,000 a year ago. Adjusted EBITDA (non-GAAP) was $301,225,000 compared to $292,410,000 a year ago. Adjusted net income (non-GAAP) was $80,200,000 or $0.81 per diluted share compared to $84,138,000 or $0.86 per diluted share a year ago. Net cash provided by operating activities was $175,919,000 compared to $212,387,000 a year ago. Capital expenditures were $108,012,000 compared to $99,246,000 a year ago. Net debt decreased $81 million to $1.475 billion from second quarter due to a $75 million early principal payment made in September.

For the full year 2017, the company expected CapEx is to be around $136 million with $29 million in fourth quarter. The effective income tax rate to be 34% and cash taxes should be 30%.