KapStone Reports Second Quarter Results
NORTHBROOK, Ill., July 27, 2016 /PRNewswire/ -- KapStone Paper and Packaging Corporation (NYSE:KS) today reported results for the second quarter ended June 30, 2016. As compared to 2015's second quarter, results for 2016's second quarter are below:
- Net sales of $785 million up $114 million, or 17 percent
- Net income of $21 million down $13 million, or 40 percent
- Adjusted net income of $26 million down $16 million, or 39 percent
- Adjusted EBITDA of $97 million down $14 million, or 13 percent
- Diluted EPS of $0.21 down $0.14 per share, or 40 percent
- Adjusted diluted EPS of $0.27 down $0.17 per share, or 39 percent
Roger W. Stone, Chairman and Chief Executive Officer, stated, "KapStone's operations performed well in the second quarter with our mills producing over 668,000 tons of paper. The benefits from the Victory acquisition were offset by lower prices and a less favorable product mix. Our operating cash flow year-to-date was up $17 million. We achieved our goal of integrating an annual run rate of 115,000 tons of Victory's packaging needs into our mill and plant system. Also, with our recent strategic investments we expect additional mill integration within the next twelve months."
Second Quarter Operating Highlights
Consolidated net sales of $785 million in the second quarter of 2016 increased by $114 million, or 17 percent compared to $671 million for the 2015 second quarter. Victory Packaging's net sales increased by $159 million due to including three months of revenues in the 2016 second quarter compared to only one month in the 2015 second quarter as the acquisition closed on June 1, 2015. All other revenues are down $45 million reflecting lower sales volume as we faced increased competition in select containerboard and corrugated product markets. The Company's average mill selling price of $624 per ton in the second quarter of 2016 decreased by $43 per ton, or about 6 percent compared to the second quarter of 2015 due to index-driven lower domestic containerboard prices, lower export containerboard and kraft paper prices and a less favorable product mix.
Operating income of $44 million for the 2016 second quarter decreased by $18 million, or 29 percent, compared to the 2015 second quarter. The lower operating earnings primarily reflect lower prices for domestic and export containerboard and export kraft paper prices, the timing of planned maintenance outages, inflation on salary and certain benefit costs, an increase of the fair value of the Victory contingent consideration liability and higher depreciation and severance charges. These factors were partially offset by three months of earnings from Victory Packaging compared to one month in 2015 and related synergies, lower Victory acquisition related expenses, lower fiber and fuel costs and lower management incentives.
Interest expense, net, was $10 million for the second quarter of 2016, up $1.5 million from a year ago as a result of borrowings associated with the Victory Packaging acquisition and higher interest rates. Our weighted average interest rate as of June 30, 2016 is 2.1 percent compared to 1.8 percent as of June 30, 2015.
The effective income tax rate for the 2016 second quarter was 36.5 percent compared to 35.2 percent for the 2015 second quarter. Results in the 2016 second quarter include an unfavorable adjustment from a state tax examination.
Cash Flow and Working Capital
Cash and cash equivalents of $8 million as of June 30, 2016, remained consistent with balances at March 31, 2016. Operating activities provided $31 million during the second quarter while investing activities used $38 million and financing activities provided $8 million. Capital expenditures in the second quarter were $36 million. Financing activities included $18 million of net borrowings offset by $10 million of cash dividends.
On May 11, 2016, our Board of Directors approved a regular $0.10 per share cash dividend which was paid on July 13, 2016.
At June 30, 2016, the Company had approximately $456 million of working capital and $467 million of revolver borrowing capacity.
Conclusion
In summary, Stone commented, "I expect to see our operations continue to perform better."
Conference Call
KapStone will host a conference call at 10:00 a.m. CDT, Thursday, July 28, 2016, to discuss the Company's financial results for the 2016 second quarter. All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:
Domestic: 888-608-7946
International: 484-747-6633
Participant Passcode: 47375590
A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the "Investors" section.
Replay of the webcast will be available for 30 days on the Company's website following the call.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 20 converting plants and 60 distribution centers. The business has approximately 6,300 employees.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including "EBITDA", "Adjusted EBITDA", "Adjusted Net Income", and "Adjusted Diluted EPS" to measure our operating performance. Management uses these measures to focus on the on-going operations, and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The Company believes that EBITDA and Adjusted EBITDA provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance of the Company. Management uses EBITDA and Adjusted EBITDA for evaluating the Company's performance against competitors and as a primary measure for employees' incentive programs. Reconciliations of Net Income to EBITDA, EBITDA to Adjusted EBITDA, Net Income to Adjusted Net Income, and Diluted EPS to Adjusted Diluted EPS are included in the financial schedules contained in this press release. However, these measures should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.
Forward-Looking Statements
Statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as "may," "will," "should," "would,' "expect," "project," "anticipate," "intend," "plan," "believe," "estimate," "potential," "outlook," or "continue," the negative of these terms or other similar expressions. These statements reflect management's current views and are subject to risks, uncertainties and assumptions, many of which are beyond the Company's control that could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially include, but are not limited to: (1) industry conditions; (2) market and economic factors; (3) results of legal proceedings and compliance costs; (4) the ability to achieve and effectively manage growth; (5) the ability to pay the Company's debt obligations; (6) the ability to carry out the Company's strategic initiatives and manage associated costs; (7) managing labor relations and (8) realizing the synergies and benefits of the Victory Packaging acquisition. Further information on these and other risks and uncertainties is provided under Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and elsewhere in reports that the Company files with the SEC. These filings can be found on KapStone's Web site at http://www.kapstonepaper.com and the SEC's Web site at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and the Company disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
| KapStone Paper and Packaging Corporation |
||||||||
| Consolidated Statements of Income |
||||||||
| (In thousands, except share and per share amounts) |
||||||||
| (Unaudited) |
||||||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2016 |
2015 |
2016 |
2015 |
|||||
| Net sales |
$ 784,911 |
$ 671,255 |
$1,523,126 |
$1,217,544 |
||||
| Cost and expenses: |
||||||||
| Cost of sales, excluding depreciation and amortization |
568,831 |
470,478 |
1,102,108 |
852,676 |
||||
| Depreciation and amortization |
46,035 |
36,996 |
90,574 |
72,117 |
||||
| Freight and distribution expenses |
70,978 |
53,891 |
136,037 |
97,318 |
||||
| Selling, general and administrative expenses |
55,554 |
48,481 |
116,294 |
86,675 |
||||
| Operating income |
43,513 |
61,409 |
78,113 |
108,758 |
||||
| Foreign exchange (loss) |
(872) |
(53) |
(975) |
(938) |
||||
| Interest expense, net |
10,006 |
8,515 |
19,817 |
14,928 |
||||
| Income before provision for income taxes |
32,635 |
52,841 |
57,321 |
92,892 |
||||
| Provision for income taxes |
11,913 |
18,585 |
20,425 |
32,536 |
||||
| Net income |
$ 20,722 |
$ 34,256 |
$ 36,896 |
$ 60,356 |
||||
| Net income per share: |
||||||||
| Basic |
$ 0.21 |
$ 0.36 |
$ 0.38 |
$ 0.63 |
||||
| Diluted |
$ 0.21 |
$ 0.35 |
$ 0.38 |
$ 0.62 |
||||
| Weighted-average number of shares outstanding: |
||||||||
| Basic |
96,517,357 |
96,269,619 |
96,458,354 |
96,196,889 |
||||
| Diluted |
97,629,786 |
97,664,781 |
97,561,774 |
97,647,666 |
||||
| Effective income tax rate |
36.5% |
35.2% |
35.6% |
35.0% |
||||
| Supplemental Information |
||||||||
| GAAP to Non-GAAP Reconciliations |
||||||||
| ($ in thousands, except share and per share amounts) |
||||||||
| (unaudited) |
||||||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2016 |
2015 |
2016 |
2015 |
|||||
| Net Income (GAAP) to EBITDA (Non-GAAP) to Adjusted EBITDA (Non-GAAP): |
||||||||
| Net income (GAAP) |
$ 20,722 |
$ 34,256 |
$ 36,896 |
$ 60,356 |
||||
| Interest expense, net |
10,006 |
8,515 |
19,817 |
14,928 |
||||
| Provision for income taxes |
11,913 |
18,585 |
20,425 |
32,536 |
||||
| Depreciation and amortization |
46,035 |
36,996 |
90,574 |
72,117 |
||||
| EBITDA (Non-GAAP) |
$ 88,676 |
$ 98,352 |
$ 167,712 |
$ 179,937 |
||||
| Victory Packaging acquisition expenses |
262 |
5,919 |
525 |
6,002 |
||||
| Integration, casualty and other expenses |
1,050 |
724 |
2,016 |
1,209 |
||||
| Change in fair value of contingent consideration liability |
1,526 |
553 |
3,052 |
553 |
||||
| Severance expenses |
3,116 |
2,025 |
6,164 |
2,664 |
||||
| Stock-based compensation expense |
1,941 |
2,757 |
5,362 |
6,537 |
||||
| Adjusted EBITDA (Non-GAAP) |
$ 96,571 |
$ 110,330 |
$ 184,831 |
$ 196,902 |
||||
| Net Income (GAAP) to Adjusted Net Income (Non-GAAP): |
||||||||
| Net income (GAAP) |
$ 20,722 |
$ 34,256 |
$ 36,896 |
$ 60,356 |
||||
| Victory Packaging acquisition expenses |
262 |
5,919 |
525 |
6,002 |
||||
| Integration, casualty and other expenses |
1,050 |
724 |
2,016 |
1,209 |
||||
| Change in fair value of contingent consideration liability |
1,526 |
553 |
3,052 |
553 |
||||
| Severance expenses |
3,116 |
2,025 |
6,164 |
2,664 |
||||
| Stock-based compensation expense |
1,941 |
2,757 |
5,362 |
6,537 |
||||
| Accumulated tax adjustments* |
(2,597) |
(3,747) |
(5,760) |
(5,472) |
||||
| Adjusted Net Income (Non-GAAP) |
$ 26,020 |
$ 42,487 |
$ 48,255 |
$ 71,849 |
||||
| Diluted EPS (GAAP) to Adjusted Diluted EPS (Non-GAAP): |
||||||||
| Diluted earnings per share (GAAP) |
$ 0.21 |
$ 0.35 |
$ 0.38 |
$ 0.62 |
||||
| Victory Packaging acquisition expenses |
– |
0.06 |
0.01 |
0.06 |
||||
| Integration, casualty and other expenses |
0.01 |
0.01 |
0.02 |
0.01 |
||||
| Change in fair value of contingent consideration liability |
0.02 |
0.01 |
0.03 |
0.01 |
||||
| Severance expenses |
0.03 |
0.02 |
0.06 |
0.03 |
||||
| Stock-based compensation expense |
0.02 |
0.03 |
0.05 |
0.07 |
||||
| Accumulated tax adjustments |
( 0.02) |
( 0.04) |
( 0.06) |
( 0.06) |
||||
| Adjusted Diluted EPS (Non-GAAP) |
$ 0.27 |
$ 0.44 |
$ 0.49 |
$ 0.74 |
||||
| Accumulated tax adjustments in 2016 reflect EBITDA adjustments tax affected at 37.5 percent, the Company's marginal income tax rate offset by an unfavorable state tax examination adjustment |
||||||||
| KapStone Paper and Packaging Corporation |
|||||
| Consolidated Balance Sheets |
|||||
| (In thousands) |
|||||
| June 30, |
December 31, |
||||
| 2016 |
2015 |
||||
| (Unaudited) |
|||||
| Assets |
|||||
| Current assets: |
|||||
| Cash and cash equivalents |
$ 7,890 |
$ 6,821 |
|||
| Trade accounts receivable, net of allowances |
415,131 |
363,869 |
|||
| Other receivables |
12,682 |
18,732 |
|||
| Inventories |
331,642 |
335,903 |
|||
| Prepaid expenses and other current assets |
15,124 |
28,932 |
|||
| Total current assets |
782,469 |
754,257 |
|||
| Plant, property and equipment, net |
1,411,362 |
1,406,146 |
|||
| Other assets |
10,792 |
12,532 |
|||
| Intangible assets, net |
327,235 |
344,583 |
|||
| Goodwill |
704,592 |
704,592 |
|||
| Total assets |
$3,236,450 |
$ 3,222,110 |
|||
| Liabilities and Stockholders' Equity |
|||||
| Current liabilities: |
|||||
| Short-term borrowings |
$ 16,000 |
$ 6,400 |
|||
| Dividend payable |
9,907 |
9,862 |
|||
| Accounts payable |
182,376 |
196,491 |
|||
| Accrued expenses |
63,864 |
73,138 |
|||
| Accrued compensation costs |
52,215 |
64,149 |
|||
| Accrued income taxes |
2,288 |
15 |
|||
| Total current liabilities |
326,650 |
350,055 |
|||
| Long-term debt, net of current portion |
1,537,028 |
1,543,748 |
|||
| Pension and post-retirement benefits |
37,830 |
40,510 |
|||
| Deferred income taxes |
420,843 |
418,479 |
|||
| Other liabilities |
44,993 |
24,038 |
|||
| Total other liabilities |
2,040,694 |
2,026,775 |
|||
| Stockholders' equity: |
|||||
| Common stock $0.0001 par value |
10 |
10 |
|||
| Additional paid-in capital |
271,530 |
266,220 |
|||
| Retained earnings |
659,789 |
642,306 |
|||
| Accumulated other comprehensive (loss) income |
(62,223) |
(63,256) |
|||
| Total stockholders' equity |
869,106 |
845,280 |
|||
| Total liabilities and stockholders' equity |
$3,236,450 |
$ 3,222,110 |
|||
| KapStone Paper and Packaging Corporation |
||||||||
| Consolidated Statement of Cash Flows |
||||||||
| (In thousands) |
||||||||
| (Unaudited) |
||||||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2016 |
2015 |
2016 |
2015 |
|||||
| Operating activities: |
||||||||
| Net income |
$ 20,722 |
$ 34,256 |
$ 36,896 |
$ 60,356 |
||||
| Adjustments to reconcile net income to net cash provided by |
||||||||
| operating activities: |
||||||||
| Depreciation of plant and equipment |
37,098 |
31,954 |
72,701 |
63,659 |
||||
| Amortization of intangible assets |
8,937 |
5,042 |
17,873 |
8,458 |
||||
| Stock-based compensation expense |
1,941 |
2,757 |
5,362 |
6,537 |
||||
| Pension and postretirement |
(579) |
(2,524) |
(1,027) |
(5,416) |
||||
| Excess tax (deficiency) / benefit from stock-based compensation |
10 |
(120) |
150 |
(1,511) |
||||
| Amortization of debt issuance costs |
1,251 |
2,040 |
2,375 |
3,047 |
||||
| (Gain) / Loss on disposal of fixed assets |
715 |
32 |
653 |
210 |
||||
| Deferred income taxes |
(360) |
587 |
704 |
2,451 |
||||
| Change in fair value of contingent consideration liability |
1,526 |
553 |
3,052 |
553 |
||||
| Changes in operating assets and liabilities |
(40,241) |
1,922 |
(49,114) |
(65,757) |
||||
| Net cash provided by operating activities |
$ 31,020 |
$ 76,499 |
$ 89,625 |
$ 72,587 |
||||
| Investing activities: |
||||||||
| Purchase of intangible assets |
(1,025) |
– |
(1,525) |
– |
||||
| Victory Packaging acquisition |
– |
(616,564) |
– |
(616,564) |
||||
| Capital expenditures |
(36,210) |
(34,949) |
(72,373) |
(63,711) |
||||
| Proceeds from sales of assets |
– |
– |
4,856 |
– |
||||
| Other |
(1,250) |
– |
(1,250) |
– |
||||
| Net cash used in investing activities |
$(38,485) |
$(651,513) |
$ (70,292) |
$(680,275) |
||||
| Financing activities: |
||||||||
| Proceeds from revolving credit facility |
129,100 |
$ 179,800 |
$263,700 |
$ 266,200 |
||||
| Repayments on revolving credit facility |
(123,100) |
(174,800) |
(254,100) |
(251,200) |
||||
| Proceeds from receivables credit facility |
14,424 |
90,773 |
21,094 |
103,735 |
||||
| Repayments on receivables credit facility |
(2,470) |
- |
(27,170) |
(4,962) |
||||
| Proceeds from long-term debt |
– |
519,763 |
- |
519,763 |
||||
| Payment of loan amendment costs and debt issuance fees |
(138) |
(10,790) |
(2,388) |
(10,790) |
||||
| Proceeds from other current borrowings |
– |
– |
– |
6,615 |
||||
| Payment from other current borrowings |
– |
(2,195) |
– |
(2,195) |
||||
| Cash dividend paid |
(9,652) |
(9,626) |
(19,348) |
(19,464) |
||||
| Payment of withholding taxes on vested stock awards |
(94) |
(126) |
(786) |
(2,448) |
||||
| Proceeds from exercises of stock options |
211 |
287 |
420 |
778 |
||||
| Proceeds from issuance of shares to ESPP |
– |
- |
464 |
415 |
||||
| Excess tax (deficiency) / benefit from stock-based compensation |
(10) |
120 |
(150) |
1,511 |
||||
| Net cash provided by / (used in) financing activities |
$ 8,271 |
$ 593,206 |
$ (18,264) |
$ 607,958 |
||||
| Net increase in cash and cash equivalents |
806 |
18,192 |
1,069 |
270 |
||||
| Cash and cash equivalents-beginning of period |
7,084 |
10,545 |
6,821 |
28,467 |
||||
| Cash and cash equivalents-end of period |
$ 7,890 |
$ 28,737 |
$ 7,890 |
$ 28,737 |
||||
| KapStone Paper and Packaging Corporation |
|||||||||||||
| Operating Segment Information |
|||||||||||||
| (In thousands) |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Net Sales |
|||||||||||||
| Three Months Ended June 30, 2016 |
Trade |
Inter-segment |
Total |
Operating Income (Loss) |
Depreciation and Amortization |
Capital Expenditures |
Total Assets at June 30, 2016 |
||||||
| Paper and Packaging |
$ 532,571 |
$ 20,524 |
$ 553,095 |
$ 41,082 |
$ 38,163 |
$ 34,265 |
$ 2,507,161 |
||||||
| Distribution (a) |
252,340 |
- |
252,340 |
12,336 |
5,702 |
932 |
686,997 |
||||||
| Corporate |
- |
- |
- |
(9,905) |
2,170 |
1,013 |
42,292 |
||||||
| Intersegment eliminations |
- |
(20,524) |
(20,524) |
- |
- |
- |
- |
||||||
| $ 784,911 |
$ - |
$ 784,911 |
$ 43,513 |
$ 46,035 |
$ 36,210 |
$ 3,236,450 |
|||||||
| Net Sales |
|||||||||||||
| Three Months Ended June 30, 2015 |
Trade |
Inter-segment |
Total |
Operating Income (Loss) |
Depreciation and Amortization |
Capital Expenditures |
Total Assets at June 30, 2015 |
||||||
| Paper and Packaging |
$ 577,857 |
$ 788 |
$ 578,645 |
$ 71,844 |
$ 34,187 |
$ 30,256 |
$ 2,553,708 |
||||||
| Distribution (a) |
93,398 |
- |
93,398 |
1,720 |
1,945 |
243 |
527,704 |
||||||
| Corporate (b) |
- |
- |
- |
(12,155) |
864 |
4,450 |
223,792 |
||||||
| Intersegment eliminations |
- |
(788) |
(788) |
- |
- |
- |
- |
||||||
| $ 671,255 |
$ - |
$ 671,255 |
$ 61,409 |
$ 36,996 |
$ 34,949 |
$ 3,305,204 |
|||||||
| Net Sales |
|||||||||||||
| Six Months Ended June 30, 2016 |
Trade |
Inter-segment |
Total |
Operating Income (Loss) |
Depreciation and Amortization |
Capital Expenditures |
|||||||
| Paper and Packaging |
$ 1,052,611 |
$ 36,993 |
$ 1,089,604 |
$ 87,323 |
$ 75,299 |
$ 66,620 |
|||||||
| Distribution (a) |
470,515 |
- |
470,515 |
13,717 |
11,363 |
2,998 |
|||||||
| Corporate |
- |
- |
- |
(22,927) |
3,912 |
2,755 |
|||||||
| Intersegment eliminations |
- |
(36,993) |
(36,993) |
- |
- |
- |
|||||||
| $ 1,523,126 |
$ - |
$ 1,523,126 |
$ 78,113 |
$ 90,574 |
$ 72,373 |
||||||||
| Net Sales |
|||||||||||||
| Six Months Ended June 30, 2015 |
Trade |
Inter-segment |
Total |
Operating Income (Loss) |
Depreciation and Amortization |
Capital Expenditures |
|||||||
| Paper and Packaging |
$ 1,124,146 |
$ 788 |
$ 1,124,934 |
$ 130,136 |
$ 68,664 |
$ 56,506 |
|||||||
| Distribution (a) |
93,398 |
- |
93,398 |
1,720 |
1,945 |
243 |
|||||||
| Corporate |
- |
- |
- |
(23,098) |
1,508 |
6,962 |
|||||||
| Intersegment eliminations |
- |
(788) |
(788) |
- |
- |
- |
|||||||
| $ 1,217,544 |
$ - |
$ 1,217,544 |
$ 108,758 |
$ 72,117 |
$ 63,711 |
||||||||
| (a) |
Reflects results of Victory Packaging which KapStone acquired on June 1, 2015 |
|||||||||||||
| (b) |
Goodwill related to the Victory Packaging acquisition was included in Corporate as of June 30, 2015 and was subsequently allocated to the Distribution segment in the quarter ended September 30, 2015 |
|||||||||||||
| KapStone Paper and Packaging Corporation |
||||||||
| Operating Segment EBITDA and Adjusted EBITDA |
||||||||
| (In thousands) |
||||||||
| (Unaudited) |
||||||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| Paper and Packaging |
2016 |
2015 |
2016 |
2015 |
||||
| Segment income |
$ 41,082 |
$ 71,844 |
$ 87,323 |
$ 130,136 |
||||
| Foreign exchange (loss) / gain |
(288) |
146 |
- |
(739) |
||||
| Depreciation and amortization |
38,163 |
34,187 |
75,299 |
68,664 |
||||
| EBITDA |
78,957 |
106,177 |
162,622 |
198,061 |
||||
| Victory Packaging acquisition expenses |
- |
- |
- |
- |
||||
| Integration, casualty and other expenses |
935 |
724 |
1,819 |
1,209 |
||||
| Severance expenses |
3,035 |
2,025 |
5,297 |
2,664 |
||||
| Adjusted EBITDA |
$ 82,927 |
$ 108,926 |
$ 169,738 |
$ 201,934 |
||||
| Adjusted EBITDA margin |
15.6% |
18.8% |
16.1% |
18.0% |
||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| Distribution |
2016 |
2015 |
2016 |
2015 |
||||
| Segment income |
$ 12,336 |
$ 1,720 |
$ 13,717 |
$ 1,720 |
||||
| Foreign exchange (loss) / gain |
(584) |
(199) |
(975) |
(199) |
||||
| Depreciation and amortization |
5,702 |
1,945 |
11,363 |
1,945 |
||||
| EBITDA |
17,454 |
3,466 |
24,105 |
3,466 |
||||
| Victory Packaging acquisition expenses |
262 |
3,870 |
525 |
3,870 |
||||
| Integration, casualty and other expenses |
- |
- |
- |
- |
||||
| Severance expenses |
89 |
- |
480 |
- |
||||
| Adjusted EBITDA |
$ 17,805 |
$ 7,336 |
$ 25,110 |
$ 7,336 |
||||
| Adjusted EBITDA margin |
7.1% |
7.9% |
5.3% |
7.9% |
||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| Corporate |
2016 |
2015 |
2016 |
2015 |
||||
| Segment (loss) |
$ (9,905) |
$ (12,155) |
$ (22,927) |
$ (23,098) |
||||
| Foreign exchange loss / (gain) |
- |
- |
- |
- |
||||
| Depreciation and amortization |
2,170 |
864 |
3,912 |
1,508 |
||||
| EBITDA |
(7,735) |
(11,291) |
(19,015) |
(21,590) |
||||
| Victory Packaging acquisition expenses |
- |
2,049 |
- |
2,132 |
||||
| Integration, casualty and other expenses |
115 |
- |
197 |
- |
||||
| Change in fair value of contingent consideration liability |
1,526 |
553 |
3,052 |
553 |
||||
| Severance expenses |
(8) |
- |
387 |
- |
||||
| Stock-based compensation |
1,941 |
2,757 |
5,362 |
6,537 |
||||
| Adjusted EBITDA |
$ (4,161) |
$ (5,932) |
$ (10,017) |
$ (12,368) |
||||
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||
| Consolidated |
2016 |
2015 |
2016 |
2015 |
||||
| Segment income |
$ 43,513 |
$ 61,409 |
$ 78,113 |
$ 108,758 |
||||
| Foreign exchange (loss) / gain |
(872) |
(53) |
(975) |
(938) |
||||
| Depreciation and amortization |
46,035 |
36,996 |
90,574 |
72,117 |
||||
| EBITDA |
88,676 |
98,352 |
167,712 |
179,937 |
||||
| Victory Packaging acquisition expenses |
262 |
5,919 |
525 |
6,002 |
||||
| Integration, casualty and other expenses |
1,050 |
724 |
2,016 |
1,209 |
||||
| Severance expenses |
3,116 |
2,025 |
6,164 |
2,664 |
||||
| Change in fair value of contingent consideration liability |
1,526 |
553 |
3,052 |
553 |
||||
| Stock-based compensation |
1,941 |
2,757 |
5,362 |
6,537 |
||||
| Adjusted EBITDA |
$ 96,571 |
$ 110,330 |
$ 184,831 |
$ 196,902 |
||||
SOURCE KapStone Paper and Packaging Corporation
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