UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 19, 2009
Packaging Corporation of America
(Exact name of registrant as specified in its charter)
| Delaware | 1-15399 | 36-4277050 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification | ||
| No.) |
1900 West Field Court, Lake Forest, Illinois 60045
(Address of Principal Executive Offices, including Zip Code)
(Address of Principal Executive Offices, including Zip Code)
(847) 482-3000
(Registrant’s Telephone Number, Including Area Code)
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Item 2.02. Results of Operations and Financial Condition.
The information furnished in this Current Report on Form 8-K, including the exhibit described
below, shall not be deemed “filed” hereunder for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the
Securities Exchange Act of 1933, as amended, or the Exchange Act, except as shall be expressly set
forth by specific reference in such a filing.
On October 19, 2009, Packaging Corporation of America issued a press release announcing third
quarter 2009 financial results. The press release is furnished as Exhibit 99.1 to this report on
Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(D) Exhibits
99.1 Third Quarter 2009 Earnings Press Release dated October 19, 2009.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PACKAGING CORPORATION OF AMERICA | ||||||
| (Registrant) | ||||||
| By: | /s/ PAUL T. STECKO
|
|||||
| By: | /s/ RICHARD B. WEST
|
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Date: October 19, 2009
Exhibit 99.1
PACKAGING CORPORATION OF AMERICA REPORTS THIRD QUARTER 2009 RESULTS
Lake Forest, IL, October 19, 2009 — Packaging Corporation of America (NYSE: PKG) today reported
third quarter 2009 net income of $73 million, or $0.71 per share. Third quarter earnings included
income of $48 million, or $0.46 per share, from alternative fuel mixture tax credits for the period
from July 1, 2009 through September 30, 2009. Net sales for the third quarter were
$554 million compared to $621 million in the third quarter of 2008.
$554 million compared to $621 million in the third quarter of 2008.
Excluding income from alternative fuel mixture tax credits, net income was $25 million, or
$0.25 per share, versus third quarter 2008 net income of $38 million, or $0.37 per share. This $0.12 per share decrease in earnings, compared to last year, was driven by the downturn in the economy which lowered containerboard and corrugated products price and mix ($0.19), and volume ($0.06). These items were partially offset by lower costs for transportation ($0.05), energy ($0.05), recycled fiber ($0.02) and chemicals ($0.02).
$0.25 per share, versus third quarter 2008 net income of $38 million, or $0.37 per share. This $0.12 per share decrease in earnings, compared to last year, was driven by the downturn in the economy which lowered containerboard and corrugated products price and mix ($0.19), and volume ($0.06). These items were partially offset by lower costs for transportation ($0.05), energy ($0.05), recycled fiber ($0.02) and chemicals ($0.02).
Net income for the first nine months of 2009 was $207 million, or $2.03 per share, and excluding
alternative fuel mixture tax credits, earnings were $80 million, or $0.78 per share, compared to
$105 million, or $1.01 per share, in 2008. Year-to-date net sales were $1.62 billion compared to
$1.81 billion in 2008.
Corrugated products shipments were down 4.8% and outside sales of containerboard were down about 6%
compared to last year’s third quarter. Containerboard production was 588,000 tons after taking
approximately 30,000 tons of market-related downtime. PCA ended the quarter with containerboard
inventories about 8,000 tons lower than the second quarter.
Paul T. Stecko, Chairman and CEO of PCA, said, “Business conditions continued to improve with our
corrugated products shipments up 1.5%, or 6,000 tons, and containerboard sales up 24%, or 24,000
tons, over the second quarter. This allowed us to increase mill operating rates to 95% and cut our
market-related downtime in half, compared to the second quarter, while at the same time, reducing
our containerboard inventories. While we continued to benefit from lower input costs, lower sales
prices more than offset this benefit which reduced earnings.”
“Looking ahead to the fourth quarter,” Mr. Stecko added, “we expect lower volume due to three less
shipping days along with normal seasonality. Prices are expected to be lower as a result of
previously published containerboard price changes, and wood costs and energy usage are expected to
be higher with colder and wetter weather. Considering these items, and excluding any income from
alternative fuel mixture tax credits, we currently estimate our fourth quarter earnings at about
$0.13 per share.”
PCA is the fifth largest producer of containerboard and corrugated packaging products in the United
States with sales of $2.4 billion in 2008. PCA operates four paper mills and 68 corrugated
products plants in 26 states across the country.
CONTACT:
Barbara Sessions
Packaging Corporation of America
INVESTOR RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com
Packaging Corporation of America
INVESTOR RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com
Conference Call Information:
WHAT:
|
Packaging Corporation of America’s 3rd Quarter 2009 Earnings Conference Call | |
WHEN:
|
Tuesday, October 20, 2009 10:00 a.m. Eastern Time |
|
NUMBER:
|
(866) 814-1919 (U.S. and Canada) or (703) 639-1363 (International) Dial in by 9:45 a.m. Eastern Time Conference Call Leader: Mr. Paul Stecko |
|
WEBCAST:
|
http://www.packagingcorp.com |
REBROADCAST DATES:
|
October 20, 2009 1:00 p.m. Eastern Time through November 3, 2009 11:59 p.m. Eastern Time |
|
REBROADCAST NUMBER:
|
(888) 258-7854 (U.S. and Canada) or (703) 925-2490 (International) Passcode: 1402784 |
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; containerboard and corrugated products general industry conditions,
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 December 31, 2008 filed with the Securities and
Exchange Commission and available at the SEC’s website at “www.sec.gov”.
Packaging Corporation of America
Consolidated Earnings Results
Unaudited
Consolidated Earnings Results
Unaudited
| Three Months Ended Sept. 30, | ||||||||
| (in millions, except per share data) | 2009 | 2008 | ||||||
Net sales |
$ | 553.5 | $ | 620.8 | ||||
Cost of sales |
(443.0 | ) | (488.7 | ) | ||||
Gross profit |
110.5 | 132.1 | ||||||
Selling and administrative expenses |
(44.2 | ) | (44.8 | ) | ||||
Corporate overhead |
(13.2 | ) | (16.1 | ) | ||||
Other income (expense), net |
43.2 | (2.5 | ) | |||||
Income before interest and taxes |
96.3 | 68.7 | ||||||
Interest expense, net |
(8.9 | ) | (8.1 | ) | ||||
Income before taxes |
87.4 | 60.6 | ||||||
Provision for income taxes |
(14.7 | ) | (22.5 | ) | ||||
Net income |
$ | 72.7 | $ | 38.1 | ||||
Earnings per share: |
||||||||
Basic |
$ | 0.71 | $ | 0.37 | ||||
Diluted |
$ | 0.71 | $ | 0.37 | ||||
Basic common shares outstanding |
101.7 | 102.6 | ||||||
Diluted common shares outstanding |
102.5 | 103.6 | ||||||
Supplemental financial information: |
||||||||
Capital spending |
$ | 18.3 | $ | 32.6 | ||||
Cash balance |
$ | 224.3 | $ | 148.0 | ||||
Packaging Corporation of America
Consolidated Earnings Results
Unaudited
Consolidated Earnings Results
Unaudited
| Nine Months Ended Sept. 30, | ||||||||
| (in millions, except per share data) | 2009 | 2008 | ||||||
Net sales |
$ | 1,615.3 | $ | 1,814.4 | ||||
Cost of sales |
(1,276.3 | ) | (1,437.0 | ) | ||||
Gross profit |
339.0 | 377.4 | ||||||
Selling and administrative expenses |
(130.3 | ) | (131.9 | ) | ||||
Corporate overhead |
(42.1 | ) | (44.5 | ) | ||||
Other income (expense), net |
115.0 | (11.0 | ) | |||||
Income before interest and taxes |
281.6 | 190.0 | ||||||
Interest expense, net |
(26.5 | ) | (22.5 | ) | ||||
Income before taxes |
255.1 | 167.5 | ||||||
Provision for income taxes |
(47.9 | ) | (62.1 | ) | ||||
Net income |
$ | 207.2 | $ | 105.4 | ||||
Earnings per share: |
||||||||
Basic |
$ | 2.04 | $ | 1.02 | ||||
Diluted |
$ | 2.03 | $ | 1.01 | ||||
Basic common shares outstanding |
101.5 | 103.1 | ||||||
Diluted common shares outstanding |
102.3 | 104.0 | ||||||
Supplemental financial information: |
||||||||
Capital spending |
$ | 68.6 | $ | 98.3 | ||||