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|KapStone Reports Record Fourth Quarter And Full Year Results|
As compared to 2012's fourth quarter, results for 2013's fourth quarter are below:
As compared to the year ended
"Our legacy operations delivered a record fourth quarter and an all-time full-year record performance despite struggling with some temporary fourth quarter operational issues which negatively impacted our EBITDA by
"KapStone's growing strength is best evidenced by its robust operating cash flows which delivered
Fourth Quarter Operating Highlights
Consolidated net sales of
Operating income of
Interest expense, net, was
The effective income tax rate for the 2013 fourth quarter was 31.6 percent compared to 36.9 percent for the 2012 fourth quarter. The lower effective income tax rate in the 2013 fourth quarter is due to a reversal of an uncertain tax position reserve relating to alternative fuel mixture credits partially offset by higher state income taxes.
Full Year Operating Highlights
Consolidated net sales for the year ending
Operating income of
Interest expense for the year ended
The effective income tax rate for the year ended
Cash and cash equivalents increased by
For the full year, cash provided by operating activities was
In summary, Stone commented, "Our expectations for the
KapStone will host a conference call at
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
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 and liquidity 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, Basic EPS to Adjusted Basic EPS, 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.
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, including changes in cost, competition, changes in the Company's product mix and demand and pricing for the Company's products; (2) market and economic factors, including changes in raw material and healthcare costs, exchange rates and interest rates; (3) results of legal proceedings and compliance costs, including unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations; (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 and (7) the integration of the
Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812