LONDON, UK / ACCESSWIRE / March 08, 2018 / Active-Investors.com has just released a free earnings report on KapStone Paper and Packaging Corp. (NYSE: KS) ("KapStone"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=KS. KapStone reported its fourth quarter and fiscal 2017 operating and financial results on February 07, 2018. The maker of paper container and packaging products outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, KapStone Paper and Packaging most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the fourth quarter ended December 31, 2017, KapStone's consolidated net sales of $858.68 million were 10% higher than Q4 2016 sales of $777.50 million, reflecting higher prices for containerboard and corrugated products. The Company's reported numbers exceeded analyst' estimates of $816.1 million.
During Q4 2017, KapStone reported that tons of paper sold in the paper and packaging segment increased to 731,000 tons compared to 724,000 tons in Q4 2016. The Company's average mill selling price of $698 per ton in the reported quarter was higher by $81 per ton compared to the year ago same period, driven by the combined impact of higher export and domestic containerboard selling prices and kraft paper prices. KapStone's distribution segment sales increased by $14 million compared to the prior year's corresponding quarter due to higher prices, partially offset by lower volume.
KapStone's adjusted EBITDA was $135.93 million for Q4 2017 compared to $91.82 million in Q4 2016, driven by higher selling prices, higher sales volume, productivity improvements, and cost savings. KapStone's effective income tax rate for Q4 2017, excluding the impact of the new tax law, was 31.4% compared to 32.6% for Q4 2016.
For Q4 2017, KapStone's net income was $187.71 million, or $1.90 per diluted share, compared to earnings of $18.34 million, or $0.19 per diluted share, in Q4 2016. The Company's reported quarter results included a provisional tax benefit of $144 million associated with the passage of the Tax Cuts and Jobs Act on December 22, 2017. KapStone's adjusted net income of $0.51 per diluted share, were up 113% on a y-o-y basis, smashing past Wall Street's estimates of $0.37 per share.
KapStone's consolidated net sales for the year ended December 31, 2017, were $3.32 billion, reflecting an increase of 8% compared to FY16 sales of $3.08 billion. The increase was due to higher prices, a better product mix, and higher volumes in the paper and packaging segment.
For FY17, KapStone's net income was $243.50 million, or $2.47 per diluted share, compared to $86.25 million, or $0.88 per diluted share, in FY16. The increase was mainly due to a provisional tax benefit of $144 million based on the new tax law enacted on December 22, 2017. The Company's adjusted earnings jumped 20% to $1.22 per diluted share for FY17.
Cash Flow and Working Capital
KapStone's cash and cash equivalents increased by $17 million to $28 million on a q-o-q basis at December 31, 2017. The Company generated $150 million of net cash from operating activities during the reported quarter. KapStone's capital expenditures in Q4 2017 were $30 million. The Company paid $10 million of dividends and made a voluntary debt repayment to reduce term loan borrowings by $80 million in the reported quarter.
KapStone's cash and cash equivalents decreased by $1 million during 2017 compared to December 31, 2016, reflecting cash provided by operating activities of $325 million, $138 million for capital expenditures, and $34 million for a strategic investment to increase mill integration.
At December 31, 2017, KapStone had approximately $405 million of working capital and $486 million of revolver borrowing capacity.
Stock Performance Snapshot
March 07, 2018 - At Wednesday's closing bell, KapStone's stock slightly declined 0.43%, ending the trading session at $34.86.
Volume traded for the day: 842.04 thousand shares.
Stock performance in the last month - up 1.13%; previous three-month period - up 56.39%; past twelve-month period - up 57.88%; and year-to-date - up 53.64%
After yesterday's close, KapStone's market cap was at $3.38 billion.
Price to Earnings (P/E) ratio was at 35.50.
The stock has a dividend yield of 1.15%.
The stock is part of the Consumer Goods sector, categorized under the Paper & Paper Products industry.
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