Packaging Corporation of America Reports Record Fourth Quarter and Full Year 2014 Results
Full year earnings were
Excluding special items, the
Packaging segment EBITDA in the fourth quarter of 2014 was
Paper segment EBITDA in the fourth quarter of 2014 was
Commenting on reported results for the quarter and full year, Mark W.
Kowlzan, CEO, said “We had a solid quarter with strong corrugated
products demand, productive mill operations, and a successful rebuild
and start-up of the D3 machine. As a result of the D3 production, we
were able to reduce the outside purchases of containerboard from about
17,000 tons per month to 4,500 tons in December. Excluding special
items, our 2014 earnings of
“Looking ahead to the first quarter,” Mr. Kowlzan added, “we expect lost
containerboard production of about 60,000 tons and higher operating
costs from annual maintenance downtime at our two largest containerboard
mills and two less production days compared to the fourth quarter. This
will be essentially offset by lower amortization of annual outage repair
costs. Corrugated products shipments are expected to be seasonally
lower, and white paper prices are expected to be lower with a full
quarter’s impact of published price changes. Seasonally colder weather
will increase wood, energy and chemical costs. In addition, labor and
benefit costs will be higher with timing related payments and annual
wage increases. These items will be partially offset by higher
production on the D3 paper machine and lower interest expense. We
currently expect first quarter earnings of
PCA is the fourth largest producer of containerboard and corrugated
packaging products in
Conference Call Information:
WHAT: |
Packaging Corporation of America’s 4th Quarter and Full Year 2014 Earnings | |
Conference Call | ||
WHEN: |
Tuesday, January 27, 2015 | |
10:00 a.m. Eastern Time | ||
CALL-IN |
(855) 730-0288 (U.S. and Canada) or (832) 412-2295 (International) | |
NUMBER: |
Dial in by 9:45 a.m. Eastern Time | |
Conference Call Leader: Mr. Mark Kowlzan | ||
WEBCAST: |
||
REBROADCAST DATES: |
January 27, 2015 1:00 p.m. Eastern Time through | |
February 9, 2015 11:59 p.m. Eastern Time | ||
REBROADCAST NUMBERS: |
(855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) | |
Passcode: 35494227 | ||
Some of the statements in this press release are forward-looking
statements. Forward-looking statements include statements about our
future earnings and financial condition, our industry and our business
strategy. Statements that contain words such as “ will”, “should”,
“anticipate”, “believe”, “expect”, “intend”, “estimate”, “hope” or
similar expressions, are forward-looking statements. These
forward-looking statements are based on the current expectations of PCA.
Because forward-looking statements involve inherent risks and
uncertainties, the plans, actions and actual results of PCA could differ
materially. Among the factors that could cause plans, actions and
results to differ materially from PCA’s current expectations include the
following: the impact of general economic conditions; conditions in the
paper and packaging industries, including competition, product demand
and product pricing; fluctuations in wood fiber and recycled fiber
costs; fluctuations in purchased energy costs; the possibility of
unplanned outages or interruptions at our principal facilities; and
legislative or regulatory requirements, particularly concerning
environmental matters, as well as those identified under Item 1A. Risk
Factors in PCA’s Annual Report on Form 10-K for the year ended
Non-GAAP measures used in this press release are reconciled to the most comparable measure reported in accordance with GAAP in the schedules to this press release.
Packaging Corporation of America | |||||||||||||||||||||||||
Consolidated Earnings Results | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
(dollars in millions, except per-share data) | |||||||||||||||||||||||||
Three Months Ended | Full Year Ended | ||||||||||||||||||||||||
December 31 | September 30, | December 31 | |||||||||||||||||||||||
2014 (1) | 2013 (1,2) | 2014 (1) | 2014 (1) | 2013 (1,2) | |||||||||||||||||||||
Net sales | $ | 1,434.0 | $ | 1,264.4 | $ | 1,518.9 | $ | 5,852.6 | $ | 3,665.3 | |||||||||||||||
Cost of sales | (1,137.0 | ) |
(3,4) |
(1,005.0 | ) |
(5) |
(1,198.6 | ) |
(3,4) |
(4,623.1 | ) |
(3,4) |
(2,797.8 | ) |
(5) |
||||||||||
Gross profit | 297.0 | 259.4 | 320.3 | 1,229.5 | 867.5 | ||||||||||||||||||||
Selling, general, and administrative expenses | (110.4 | ) |
(4) |
(100.0 | ) | (119.6 | ) |
(4) |
(469.5 | ) |
(4) |
(326.6 | ) | ||||||||||||
Other expense, net | (13.4 | ) |
(3,4) |
(36.5 | ) |
(6) |
(12.3 | ) |
(3,4) |
(57.3 | ) |
(3,4) |
(59.0 | ) |
(6) |
||||||||||
Income from operations | 173.2 | 122.9 | 188.4 | 702.7 | 481.9 | ||||||||||||||||||||
Interest expense, net | (23.2 | ) | (27.9 | ) |
(6) |
(23.1 | ) |
(4) |
(88.4 | ) |
(4) |
(58.3 | ) |
(6) |
|||||||||||
Income before taxes | 150.0 | 95.0 | 165.3 | 614.3 | 423.6 | ||||||||||||||||||||
Provision for income taxes | (51.5 | ) | 133.1 |
(7) |
(60.9 | ) | (221.7 | ) | 17.7 |
(7) |
|||||||||||||||
Net income | $ | 98.5 | $ | 228.1 | $ | 104.4 | $ | 392.6 | $ | 441.3 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | $ | 1.00 | $ | 2.36 | $ | 1.06 | $ | 3.99 | $ | 4.57 | |||||||||||||||
Diluted | $ | 1.00 | $ | 2.34 | $ | 1.06 | $ | 3.99 | $ | 4.52 | |||||||||||||||
Supplemental financial information: | |||||||||||||||||||||||||
Capital spending | $ | 165.4 | $ | 104.0 | $ | 106.7 | $ | 420.2 | $ | 234.4 | |||||||||||||||
Cash balance | $ | 124.9 | $ | 191.0 | $ | 154.3 | $ | 124.9 | $ | 191.0 | |||||||||||||||
(1) On October 25, 2013, we acquired Boise Inc. (Boise). Our financial results include Boise subsequent to acquisition. | |||||||||||||||||||||||||
(2) Effective January 1, 2014, the Company changed its method of accounting for inventories from lower of cost, as determined by the LIFO method, or market, to lower of cost, as determined by the average cost method, or market. The Company applied the change retrospectively to all prior periods presented herein in accordance with US generally accepted accounting principles (GAAP) relating to accounting changes. For more information, see Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our Current Report on Form 8-K filed on May 9, 2014. | |||||||||||||||||||||||||
(3) On October 17, 2014, we completed the No. 3 newsprint machine conversion at the DeRidder, Louisiana, mill to produce containerboard. The three and twelve months ended December 31, 2014, include $18.0 million and $65.8 million, respectively, and the three months ended September 30, 2014, includes $26.0 million, of restructuring charges, including accelerated depreciation and start-up costs for the reconfigured machine. Most of the expenses were recorded in "Cost of sales". | |||||||||||||||||||||||||
(4) The three and twelve months ended December 31, 2014, include
$6.4 million and $19.9 million of Boise acquisition
integration-related and other costs, most of which are recorded in
“Other expense, net.” Boise acquisition integration-related and
other costs during the twelve months ended December 31, 2014, also
includes $1.5 million of expenses in “Interest expense, net” related
to the write-off of deferred financing costs. The twelve months
ended December 31, 2014, also includes $17.6 million of costs
recorded in “Other expense, net” for the settlement of the Kleen
Products LLC v Packaging Corp. of America et al class action
lawsuit.
The three months ended September 30, 2014, includes $4.5 million of Boise acquisition integration-related, debt refinancing, and other costs, of which $3.0 million was recorded in "Other expense, net" and $1.5 million for the write-off of deferred financing costs was recorded in "Interest expense, net". |
|||||||||||||||||||||||||
(5) GAAP required us to value the inventory from the acquisition of Boise at fair value. This reduced the profit on the sale of the acquired inventory to that portion attributable to the selling effort. During both the three and twelve months ended December 31, 2013, this step-up in value resulted in $21.5 million of expense as the acquired inventory was sold and charged to cost of sales. | |||||||||||||||||||||||||
(6) The three and twelve months ended December 31, 2013, include
$15.8 million and $17.2 million, respectively, of
acquisition-related costs, primarily for professional fees related
to transaction-advisory services, and both periods include $17.4
million of integration-related and other costs. These costs are
primarily recorded in "Other expense, net".
The twelve months ended December 31, 2013, includes $10.9 million of non-cash pension curtailment charges related to pension plan changes in which certain hourly corrugated plant and containerboard mill employees will transition from a defined benefit pension plan to a defined contribution (401k) plan.
The three and twelve months ended December 31, 2013, include $7.8 million and $10.5 million, respectively, of expenses for financing the acquisition. In addition, both periods include $1.1 million of expense for the write-off of deferred financing costs. |
|||||||||||||||||||||||||
(7) The three and twelve months ended December 31, 2013, include $166.0 million of income tax benefits from the reversal of the reserves for unrecognized tax benefits from alternative energy tax credits. The IRS completed its audit of PCA's 2008 and 2009 Federal income tax returns and all claimed alternative energy tax credits were allowed. As a result, a $103.9 million reserve for the Filer City mill’s cellulosic biofuel tax credit was fully reversed. In addition, an IRS Chief Counsel Memorandum was published in the fourth quarter and resulted in the reversal of $62.1 million of reserves related to the taxability of alternative fuel mixture tax credits acquired in the acquisition of Boise. | |||||||||||||||||||||||||
1 |
Packaging Corporation of America | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Three Months Ended | Full Year Ended | |||||||||||||||||||
December 31 | September 30, | December 31 | ||||||||||||||||||
2014 (1) | 2013 (1,2) | 2014 (1) | 2014 (1) | 2013 (1,2) | ||||||||||||||||
Segment sales | ||||||||||||||||||||
Packaging | $ | 1,122.0 | $ | 1,030.8 | $ | 1,175.7 | $ | 4,540.3 | $ | 3,431.7 | ||||||||||
Paper | 284.4 | 216.9 | 312.5 | 1,201.4 | 216.9 | |||||||||||||||
Intersegment eliminations and other | 27.6 | 16.7 | 30.7 | 110.9 | 16.7 | |||||||||||||||
$ | 1,434.0 | $ | 1,264.4 | $ | 1,518.9 | $ | 5,852.6 | $ | 3,665.3 | |||||||||||
Segment income (loss) | ||||||||||||||||||||
Packaging | $ | 161.4 | $ | 159.1 | $ | 164.7 | $ | 663.2 | $ | 554.2 | ||||||||||
Paper | 31.1 | 13.5 | 43.0 | 135.4 | 13.5 | |||||||||||||||
Corporate and Other | (19.3 | ) | (49.7 | ) | (19.3 | ) | (95.9 | ) | (85.8 | ) | ||||||||||
Income from operations | 173.2 | 122.9 | 188.4 | 702.7 | 481.9 | |||||||||||||||
Interest expense, net | (23.2 | ) | (27.9 | ) | (23.1 | ) | (88.4 | ) | (58.3 | ) | ||||||||||
Income before taxes | $ | 150.0 | $ | 95.0 | $ | 165.3 | $ | 614.3 | $ | 423.6 | ||||||||||
Segment income (loss) excluding special items (3) | ||||||||||||||||||||
Packaging | $ | 178.9 | $ | 178.5 | $ | 191.7 | $ | 733.9 | $ | 584.5 | ||||||||||
Paper | 31.5 | 15.1 | 43.0 | 135.4 | 15.1 | |||||||||||||||
Corporate and Other | (12.8 | ) | (16.0 | ) | (17.3 | ) | (64.8 | ) | (50.7 | ) | ||||||||||
$ | 197.6 | $ | 177.6 | $ | 217.4 | $ | 804.5 | $ | 548.9 | |||||||||||
EBITDA (3) | ||||||||||||||||||||
Packaging | $ | 238.7 | $ | 220.5 | $ | 253.5 | $ | 986.2 | $ | 744.4 | ||||||||||
Paper | 44.5 | 22.6 | 55.9 | 186.0 | 22.6 | |||||||||||||||
Corporate and Other | (17.8 | ) | (48.2 | ) | (17.2 | ) | (88.5 | ) | (83.3 | ) | ||||||||||
$ | 265.4 | $ | 194.9 | $ | 292.2 | $ | 1,083.7 | $ | 683.7 | |||||||||||
EBITDA excluding special items (3) | ||||||||||||||||||||
Packaging | $ | 249.7 | $ | 239.9 | $ | 262.3 | $ | 1,015.0 | $ | 774.7 | ||||||||||
Paper | 44.9 | 24.2 | 55.9 | 186.0 | 24.2 | |||||||||||||||
Corporate and Other | (11.3 | ) | (14.5 | ) | (15.2 | ) | (57.4 | ) | (48.2 | ) | ||||||||||
$ | 283.3 | $ | 249.6 | $ | 303.0 | $ | 1,143.6 | $ | 750.7 | |||||||||||
(1) On October 25, 2013, we acquired Boise Inc. (Boise). Our financial results include Boise subsequent to acquisition. | ||||||||||||||||||||
(2) See footnote (2) on page 1, for a discussion of the change in our method of accounting for inventories. | ||||||||||||||||||||
(3) Income from operations excluding special items, segment income (loss) excluding special items, earnings before interest, income taxes, and depreciation, amortization, and depletion (EBITDA), and EBITDA excluding special items are non-GAAP financial measures. We present these measures because they provide a means to evaluate the performance of our segments and our company on an ongoing basis using the same measures that are used by our management and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. The tables included in "Reconciliation of Non-GAAP Financial Measures" on the following pages reconcile the non-GAAP measures with the most directly comparable GAAP measures. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. | ||||||||||||||||||||
2 |
Packaging Corporation of America | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Three Months Ended | Full Year Ended | |||||||||||||||||||
December 31 | September 30, | December 31 | ||||||||||||||||||
2014 (1) | 2013 (1,2) | 2014 (1) | 2014 (1) | 2013 (1,2) | ||||||||||||||||
Packaging | ||||||||||||||||||||
Segment income | $ | 161.4 | $ | 159.1 | $ | 164.7 | $ | 663.2 | $ | 554.2 | ||||||||||
DeRidder restructuring | 18.0 | — | 26.0 | 65.8 | — | |||||||||||||||
Integration-related and other costs | (0.5 | ) | 1.4 | 1.0 | 4.9 | 1.4 | ||||||||||||||
Acquisition inventory step-up | — | 18.0 | — | — | 18.0 | |||||||||||||||
Pension curtailment charge | — | — | — | — | 10.9 | |||||||||||||||
Segment income excluding special items (3) | $ | 178.9 | $ | 178.5 | $ | 191.7 | $ | 733.9 | $ | 584.5 | ||||||||||
Paper | ||||||||||||||||||||
Segment income | $ | 31.1 | $ | 13.5 | $ | 43.0 | $ | 135.4 | $ | 13.5 | ||||||||||
Integration-related and other costs | 0.4 | (1.9 | ) | — | — | (1.9 | ) | |||||||||||||
Acquisition inventory step-up | — | 3.5 | — | — | 3.5 | |||||||||||||||
Segment income excluding special items (3) | $ | 31.5 | $ | 15.1 | $ | 43.0 | $ | 135.4 | $ | 15.1 | ||||||||||
Corporate and Other | ||||||||||||||||||||
Segment loss | $ | (19.3 | ) | $ | (49.7 | ) | $ | (19.3 | ) | $ | (95.9 | ) | $ | (85.8 | ) | |||||
Integration-related and other costs | 6.5 | 17.9 | 2.0 | 13.5 | 17.9 | |||||||||||||||
Class action lawsuit settlement | — | — | — | 17.6 | — | |||||||||||||||
Acquisition-related costs | — | 15.8 | — | — | 17.2 | |||||||||||||||
Segment loss excluding special items (3) | $ | (12.8 | ) | $ | (16.0 | ) | $ | (17.3 | ) | $ | (64.8 | ) | $ | (50.7 | ) | |||||
Income from operations | $ | 173.2 | $ | 122.9 | $ | 188.4 | $ | 702.7 | $ | 481.9 | ||||||||||
Income from operations, excluding special items (3) | $ | 197.6 | $ | 177.6 | $ | 217.4 | $ | 804.5 | $ | 548.9 | ||||||||||
(1) On October 25, 2013, we acquired Boise Inc. (Boise). Our financial results include Boise subsequent to acquisition. | ||||||||||||||||||||
(2) See footnote (2) on page 1, for a discussion of the change in our method of accounting for inventories. | ||||||||||||||||||||
(3) See footnote (3) on page 2, for a discussion of non-GAAP financial measures. | ||||||||||||||||||||
3 |
Packaging Corporation of America | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Net Income and EPS Excluding Special Items (1) | ||||||||||||||||||||||
Three Months Ended December 31 | Three Months Ended | |||||||||||||||||||||
2014 (2) | 2013 (2,3) | September 30, 2014 (2) | ||||||||||||||||||||
Diluted | Diluted |
|
Diluted | |||||||||||||||||||
Net Income | EPS | Net Income | EPS |
Net Income |
EPS | |||||||||||||||||
As reported | $ | 98.5 | $ | 1.00 | $ | 228.1 | $ | 2.34 | $ | 104.4 | $ | 1.06 | ||||||||||
Special items (4): | ||||||||||||||||||||||
DeRidder restructuring | 11.7 | 0.12 | — | — | 16.6 | 0.17 | ||||||||||||||||
Integration-related and other costs | 4.2 | 0.04 | 11.0 | 0.11 | 2.9 | 0.03 | ||||||||||||||||
Alternative energy tax credits | — | — | (166.0 | ) | (1.70 | ) | — | — | ||||||||||||||
Acquisition inventory step-up | — | — | 13.6 | 0.14 | — | — | ||||||||||||||||
Acquisition-related costs | — | — | 10.0 | 0.10 | — | — | ||||||||||||||||
Acquisition-related financing costs | — | — | 5.6 | 0.06 | — | — | ||||||||||||||||
Total special items | 15.9 | 0.16 | (125.8 | ) | (1.29 | ) | 19.5 | 0.20 | ||||||||||||||
Excluding special items | $ | 114.4 | $ | 1.16 | $ | 102.3 | $ | 1.05 | $ | 123.9 | $ | 1.26 | ||||||||||
Full Year Ended December 31 | ||||||||||||||||||||||
2014 (2) | 2013 (2,3) | |||||||||||||||||||||
Diluted | Diluted | |||||||||||||||||||||
Net Income | EPS | Net Income | EPS | |||||||||||||||||||
As reported | $ | 392.6 | $ | 3.99 | $ | 441.3 | $ | 4.52 | ||||||||||||||
Special items (4): | ||||||||||||||||||||||
DeRidder restructuring | 42.1 | 0.43 | — | — | ||||||||||||||||||
Integration-related and other costs | 12.7 | 0.13 | 11.0 | 0.11 | ||||||||||||||||||
Class action lawsuit settlement | 11.2 | 0.11 | — | — | ||||||||||||||||||
Alternative energy tax credits | — | — | (166.0 | ) | (1.70 | ) | ||||||||||||||||
Acquisition inventory step-up | — | — | 13.6 | 0.14 | ||||||||||||||||||
Acquisition-related costs | — | — | 10.9 | 0.11 | ||||||||||||||||||
Acquisition-related financing costs | — | — | 7.4 | 0.08 | ||||||||||||||||||
Pension curtailment charges | — | — | 7.0 | 0.07 | ||||||||||||||||||
Total special items | 66.0 | 0.67 | (116.1 | ) | (1.19 | ) | ||||||||||||||||
Excluding special items | $ | 458.6 | $ | 4.66 | $ | 325.2 | $ | 3.33 | ||||||||||||||
(1) Net income and earnings per share excluding special items are non-GAAP financial measures. The after-tax effect of special items are presented because they provide a means to evaluate the performance of our company on an ongoing basis using the same measures that are used by our management and because these measures are frequently used by investors and other interested parties in the evaluation of companies and their performance. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. | ||||||||||||||||||||||
(2) On October 25, 2013, we acquired Boise, Inc. (Boise). Our financial results include Boise subsequent to acquisition. | ||||||||||||||||||||||
(3) See footnote (2) on page 1, for a discussion of the change in our method of accounting for inventories. | ||||||||||||||||||||||
(4) Special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1. | ||||||||||||||||||||||
4 |
Packaging Corporation of America | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
EBITDA and EBITDA Excluding Special Items | ||||||||||||||||||||
EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items: | ||||||||||||||||||||
Three Months Ended | Full Year Ended | |||||||||||||||||||
December 31 | September 30, | December 31 | ||||||||||||||||||
2014 (1) | 2013 (1,2) | 2014 (1) | 2014 (1) | 2013 (1,2) | ||||||||||||||||
Net income | $ | 98.5 | $ | 228.1 | $ | 104.4 | $ | 392.6 | $ | 441.3 | ||||||||||
Interest expense, net | 23.2 | 27.9 | 23.1 | 88.4 | 58.3 | |||||||||||||||
Provision for income taxes | 51.5 | (133.1 | ) | 60.9 | 221.7 | (17.7 | ) | |||||||||||||
Depreciation, amortization, and depletion | 92.2 | 72.0 | 103.8 | 381.0 | 201.8 | |||||||||||||||
EBITDA (3) | $ | 265.4 | $ | 194.9 | $ | 292.2 | $ | 1,083.7 | $ | 683.7 | ||||||||||
Special items: | ||||||||||||||||||||
DeRidder restructuring | $ | 11.5 | $ | — | $ | 7.8 | $ | 23.9 | $ | — | ||||||||||
Integration-related and other costs | 6.4 | 17.4 | 3.0 | 18.4 | 17.4 | |||||||||||||||
Class action lawsuit settlement | — | — | — | 17.6 | — | |||||||||||||||
Acquisition inventory step-up | — | 21.5 | — | — | 21.5 | |||||||||||||||
Acquisition-related costs | — | 15.8 | — | — | 17.2 | |||||||||||||||
Pension curtailment charges | — | — | — | — | 10.9 | |||||||||||||||
EBITDA excluding special items (3) | $ | 283.3 | $ | 249.6 | $ | 303.0 | $ | 1,143.6 | $ | 750.7 | ||||||||||
(1) On October 25, 2013, we acquired Boise, Inc. (Boise). Our financial results include Boise subsequent to acquisition. | ||||||||||||||||||||
(2) See footnote (2) on page 1, for a discussion of the change in our method of accounting for inventories. | ||||||||||||||||||||
(3) See footnote (3) on page 2, for a discussion of non-GAAP financial measures. | ||||||||||||||||||||
5 |
Packaging Corporation of America | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
The following table reconciles segment income (loss) to EBITDA and EBITDA excluding special items: | ||||||||||||||||||||
Three Months Ended | Full Year Ended | |||||||||||||||||||
December 31 | September 30, | December 31 | ||||||||||||||||||
2014 (1) | 2013 (1,2) | 2014 (1) | 2014 (1) | 2013 (1,2) | ||||||||||||||||
Packaging | ||||||||||||||||||||
Segment income | $ | 161.4 | $ | 159.1 | $ | 164.7 | $ | 663.2 | $ | 554.2 | ||||||||||
Depreciation, amortization, and depletion | 77.3 | 61.4 | 88.8 | 323.0 | 190.2 | |||||||||||||||
EBITDA (3) | 238.7 | 220.5 | 253.5 | 986.2 | 744.4 | |||||||||||||||
DeRidder restructuring | 11.5 | — | 7.8 | 23.9 | — | |||||||||||||||
Integration-related and other costs | (0.5 | ) | 1.4 | 1.0 | 4.9 | 1.4 | ||||||||||||||
Acquisition inventory step-up | — | 18.0 | — | — | 18.0 | |||||||||||||||
Pension curtailment charges | — | — | — | — | 10.9 | |||||||||||||||
EBITDA excluding special items (3) | $ | 249.7 | $ | 239.9 | $ | 262.3 | $ | 1,015.0 | $ | 774.7 | ||||||||||
Paper | ||||||||||||||||||||
Segment income | $ | 31.1 | $ | 13.5 | $ | 43.0 | $ | 135.4 | $ | 13.5 | ||||||||||
Depreciation, amortization, and depletion | 13.4 | 9.1 | 12.9 | 50.6 | 9.1 | |||||||||||||||
EBITDA (3) | 44.5 | 22.6 | 55.9 | 186.0 | 22.6 | |||||||||||||||
Integration-related and other costs | 0.4 | (1.9 | ) | — | — | (1.9 | ) | |||||||||||||
Acquisition inventory step-up | — | 3.5 | — | — | 3.5 | |||||||||||||||
EBITDA excluding special items (3) | $ | 44.9 | $ | 24.2 | $ | 55.9 | $ | 186.0 | $ | 24.2 | ||||||||||
Corporate and Other | ||||||||||||||||||||
Segment loss | $ | (19.3 | ) | $ | (49.7 | ) | $ | (19.3 | ) | $ | (95.9 | ) | $ | (85.8 | ) | |||||
Depreciation, amortization, and depletion | 1.5 | 1.5 | 2.1 | 7.4 | 2.5 | |||||||||||||||
EBITDA (3) | (17.8 | ) | (48.2 | ) | (17.2 | ) | (88.5 | ) | (83.3 | ) | ||||||||||
Integration-related and other costs | 6.5 | 17.9 | 2.0 | 13.5 | 17.9 | |||||||||||||||
Class action lawsuit settlement | — | — | — | 17.6 | — | |||||||||||||||
Acquisition-related costs | — | 15.8 | — | — | 17.2 | |||||||||||||||
EBITDA excluding special items (3) | $ | (11.3 | ) | $ | (14.5 | ) | $ | (15.2 | ) | $ | (57.4 | ) | $ | (48.2 | ) | |||||
EBITDA (3) | $ | 265.4 | $ | 194.9 | $ | 292.2 | $ | 1,083.7 | $ | 683.7 | ||||||||||
EBITDA excluding special items (3) | $ | 283.3 | $ | 249.6 | $ | 303.0 | $ | 1,143.6 | $ | 750.7 | ||||||||||
(1) On October 25, 2013, we acquired Boise, Inc. (Boise). Our financial results include Boise subsequent to acquisition. | ||||||||||||||||||||
(2) See footnote (2) on page 1, for a discussion of the change in our method of accounting for inventories. | ||||||||||||||||||||
(3) See footnote (3) on page 2, for a discussion of non-GAAP financial measures. | ||||||||||||||||||||
6 |
Source:
Packaging Corporation of America
Barbara Sessions
INVESTOR
RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com