KapStone Paper and Packaging Corporation
KapStone Paper and Packaging — Q1 2018 Earnings Presentation
8 slides from KapStone Paper and Packaging's earnings presentation, Apr 18, 2018
Slide 1: Forward-Looking Statements
Forward-Looking Statements Forward-looking Statements The information in this presentation and statements made during this presentation may contain certain forward-looking statements within the meaning of federal securities laws. These statements reflect management’s expectations regarding future ev
Slide 2: First Quarter Financial Results
First Quarter Financial Results 3 ($ in Millions, except per share) Q1 2018 Q1 2017 Inc/(Dec)(1) Q4 2017 Inc/(Dec)(1) Net Sales $ 799 $ 766 4% $ 859 (7%) Net Income $ 33 $ 6 446% $ 188 (87%) Diluted EPS $ 0.33 $ 0.06 450% $ 1.90 (83%) EBITDA $ 102 $ 66 54% $ 125 (19%) Adj. EBITDA(2) $ 115 $ 81 42% $
Slide 3: Q1 2018 Compared to Q1 2017
Q1 2018 Compared to Q1 2017 Higher Prices offset by Outage Costs Drives Earnings Growth Price/mix was favorably impacted by higher average mill selling prices, up $71 per ton reflecting: Higher mill prices of $29 million Favorable product mix of $2 million Higher corrugated products prices of $17 mi
Slide 4: Q1 2018 Compared to Q4 2017
Q1 2018 Compared to Q4 2017 Seasonally Lower Volume and Outage Costs Lower Earnings 5 Price/mix was favorably impacted by higher average mill selling prices, up $21 per ton reflecting: Higher containerboard and corrugated prices and higher specialty paper products Favorable mix primarily reflecting
Slide 5: Cash Flows
Cash Flows Q1 Operating Cash Flows 6 For Q1 2018 cash flow from operations decreased $28 million YOY primarily due to a $11 million contingent consideration payment for the Victory acquisition, $14 million of merger related expenses, and $31 million of management incentives, partially offset by a $2
Slide 6: Quarterly Key Performance Indicators
Quarterly Key Performance Indicators 7 Sales and Production Paper and Packaging Product Mix (000 Tons) Containerboard includes all domestic and export sales of linerboard and medium Specialty paper includes Kraft paper, Durasorb, Kraftpak and roll pulp Containerboard and Corrugated Products(1) Speci
Slide 7: Maintenance Outage Expense & Production Impact
Maintenance Outage Expense & Production Impact 8 Financial Impact ($ in millions) Q1 Q2 Q3 Q4 Year 2016 Actual $ 6.6 $ 19.0 $ 3.8 $ 3.2 $ 32.6 2017 Actual $ 6.2 $ 17.6 $ 13.0 $ 10.0 $ 46.8 2018 Actual / Forecast $ 14.7 $ 27.2 $ 15.2 $ 7.6 $ 64.7 Lost Production Impact (Tons) Q1 Q2 Q3 Q4 Year 2016 Ac
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 $ 6.2 $ 17.6 $ 13.0 $ 10.0 $ 46.8 2018 Actual / Forecast $ 14.7 $ 27.2 $ 15.2 $ 7.6 $ 64.7 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 27,100* 19,200** 15,900*** 5,000 67,200 *
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