KapStone Paper and Packaging Corporation
KapStone Paper and Packaging — Q3 2018 Earnings Presentation
8 slides from KapStone Paper and Packaging's earnings presentation, Oct 23, 2018
Slide 1: Forward-looking Statements
Forward-looking Statements The information in this presentation may contain certain forward-looking statements within the meaning of federal securities laws. These statements reflect management’s expectations regarding future events and operating performance. Risk Factors These forward-looking state
Slide 2: Third Quarter Financial Results
Third Quarter Financial Results (1) Percentage change calculations made using unrounded source financials (2) Excludes non-cash stock compensation, merger expenses, changes in contingent consideration, union contract ratification costs, and acquisition, integration, expense and other charges. Net of
Slide 3: Q3 2018 Compared to Q3 2017 Higher Prices Drive Earnings Growth
Q3 2018 Compared to Q3 2017 Higher Prices Drive Earnings Growth Price/mix was favorably impacted by higher average mill selling prices, up $58 per ton reflecting: Higher containerboard and specialty paper prices of $27 million Favorable product mix of $1 million Higher corrugated products prices of
Slide 4: Q3 2018 Compared to Q2 2018 Higher Prices, Productivity and Lower Outage Costs Increase Earnings
Q3 2018 Compared to Q2 2018 Higher Prices, Productivity and Lower Outage Costs Increase Earnings 5 Price/mix was favorably impacted by higher average mill selling prices, up $20 per ton reflecting: Higher containerboard and specialty paper prices of $4 million Higher corrugated products prices of $6
Slide 5: Cash Flows
Cash Flows For Q3 2018 cash flow from operations increased $30 million YOY primarily due to $42 million higher earnings in 2018, partially offset by higher tax payments Capex of $33 million for the current quarter Net debt at September 30, 2018 - $1,303 million down $116 million from June 30, 2018 N
Slide 6: Quarterly Key Performance Indicators
Quarterly Key Performance Indicators 7 Sales and Production Paper and Packaging Product Mix (000 Tons) Containerboard includes all domestic and export sales of linerboard and medium Specialty paper includes Kraft paper, Durasorb®, Kraftpak® and roll pulp Containerboard and Corrugated Products(1) Spe
Slide 7: Maintenance Outage Expense & Production Impact
Maintenance Outage Expense & Production Impact *The 27,500 ton impact includes 25,700 tons for the boiler upgrade at Charleston ** The 17,400 ton impact is mainly due to the annual cold mill outage at Roanoke Rapids, and the continuation of the Charleston boiler upgrade *** The 12,600 tons impact re
Slide 8: 2016 Actual $ $ 19.0 $ 3.8 $ 3.2 $ 32.6
2016 Actual $ 66 $ 19.0 $ 3.8 $ 3.2 $ 32.6 2017 Actual $ 62 $ 176 $ 13.0 $ 10.0 $ 46.8 2018 Actual / Forecast $ 14.7 $ 21.0 $ 9.2 $ 18.6 $63.5 2016 Actual 4,800 12,900 1,900 5,300 24,900 2017 Actual 6,400 12,800 11,500 4,200 34,900 2018 Actual / Forecast 27,500* 17,400** 12,600*** 9,300 66,800 * The
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