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|KapStone Reports First Quarter Results|
Non U.S. GAAP financial measures for the 2017 first quarter compared to 2016 are as follows:
"Victory Packaging, our distribution business, had a solid first quarter and is entering its seasonally strong portion of the year. Our operations, after a slow start in January and February, are improving. All of these factors combined contributed to a strong March which accounted for about 45 percent of our adjusted quarterly EBITDA and point to an improved second quarter and a strong back half of 2017."
First Quarter Operating Highlights
Consolidated net sales of
Operating income of
Interest expense, net, was
The effective income tax rate for the 2017 first quarter was 41.0 percent compared to 34.5 percent for the 2016 first quarter. The higher effective income tax rate in the current quarter reflects the Company adopting a new accounting standard which requires the tax impact of elements of stock compensation to be recorded in the provision for income taxes.
Cash and cash equivalents of
In summary, Kaplan commented, "Looking ahead to the second quarter, I expect to see our operations continue to perform better. In addition, operating earnings should benefit from our March price increases and a better product mix, but will be impacted by higher scheduled maintenance outage costs and high OCC costs."
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 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.
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 and other strategic investments. 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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kapstone-reports-first-quarter-results-300446490.html
Andrea K. Tarbox, Executive Vice President and Chief Financial Officer, 847.239.8812