Packaging Corporation of America Reports Third Quarter 2018 Results
Diluted earnings per share attributable to Packaging Corporation of America shareholders |
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Three Months Ended | |||||||||||
September 30 | |||||||||||
2018 | 2017 | Change | |||||||||
Reported Diluted EPS | $ | 2.18 | $ | 1.47 | $ | 0.71 | |||||
Special Items Expense (1) | 0.05 | 0.21 | (0.16) | ||||||||
Diluted EPS excluding Special items | $ | 2.23 | $ | 1.68 | $ | 0.55 | |||||
(1) For descriptions and amounts of our special items, see the schedules with this release. | |||||||||||
Reported earnings include
Results were
Financial information by segment is summarized below and in the schedules with this release.
(dollars in millions) | ||||
Three Months Ended | ||||
September 30 | ||||
2018 | 2017 | |||
Segment income (loss) | ||||
Packaging | $ 284.4 | $ 263.2 | ||
Paper | 32.3 | (2.6) | ||
Corporate and Other | (18.2) | (18.0) | ||
$ 298.5 | $ 242.6 | |||
Segment income (loss) excluding special items | ||||
Packaging | $ 289.9 | $ 264.3 | ||
Paper | 32.9 | 23.0 | ||
Corporate and Other | (18.4) | (18.0) | ||
$ 304.4 | $ 269.3 | |||
EBITDA excluding special items |
||||
Packaging | $ 378.2 | $ 343.0 | ||
Paper | 44.1 | 37.5 | ||
Corporate and Other | (16.5) | (16.3) | ||
$ 405.8 | $ 364.2 | |||
In the Packaging segment, total corrugated products shipments with one
additional workday were up 8.2% and shipments per day were up 6.5% over
last year’s third quarter. Containerboard production was 1,087,000 tons,
and containerboard inventory was up 50,000 tons from the second quarter
of 2018 and up 84,000 tons compared to the third quarter of 2017,
partially due to the addition of recently acquired Sacramento Container.
In the Paper segment, compared to the third quarter of 2017, sales
volumes were 14% lower and inventories were 39% lower, primarily due to
discontinuing the paper business at the
Commenting on reported results,
“Looking ahead to the fourth quarter,” Mr. Kowlzan added, “we expect
Packaging segment demand to remain strong although there will be two
less shipping days, and we expect a seasonally less rich mix in
corrugated products, compared to the third quarter. In our Paper
segment, we will continue implementing our recently announced price
increases, but expect a seasonally less rich mix. Although paper volumes
will be seasonally lower, we expect demand to remain strong as we manage
our already tight inventory levels. With seasonally colder weather, fuel
costs are expected to be higher across the company, and we expect
continued inflation in most of our operating and converting costs,
including incremental wage pressure with a tighter labor market. We will
also have an extended outage at our
We present various non-GAAP financial measures in this press release,
including net income and diluted EPS excluding special items, segment
income excluding special items and EBITDA excluding special items. We
provide information regarding our use of non-GAAP financial measures and
reconciliations of historical non-GAAP financial measures presented in
this press release to the most comparable measure reported in accordance
with GAAP in the schedules to this press release. We present our
earnings expectation for the upcoming quarter excluding special items as
special items are difficult to predict and quantify and may reflect the
effect of future events. We currently expect special items in the fourth
quarter to include accounting charges, fees, and expenses related to the
PCA is the third largest producer of containerboard products and the
third largest producer of uncoated freesheet paper in
Some of the statements in this press release are forward-looking
statements. Forward-looking statements include statements about our
future earnings and financial condition, expected benefits from
acquisitions and restructuring activities, 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
Conference Call Information: |
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WHAT: | Packaging Corporation of America’s 3rd Quarter 2018 Earnings Conference Call | |
WHEN: | Thursday, October 25, 2018 at 9:00 a.m. Eastern Time | |
CALL-IN | (855) 730-0288 (U.S. and Canada) or (832) 412-2295 (International) | |
NUMBER: | Dial in by 8:45 a.m. Eastern Time | |
Conference Call Leader: Mr. Mark Kowlzan | ||
Conference ID: 1193016 | ||
WEBCAST: | ||
REBROADCAST DATES: | October 25, 2018 12:00 p.m. Eastern Time through November 8, 2018 11:59 p.m. Eastern Time | |
REBROADCAST NUMBERS: | (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) | |
Passcode: 1193016 | ||
Packaging Corporation of America | ||||||||||||||||||||
Consolidated Earnings Results | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in millions, except per-share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2018 (1 | ) | 2017 (1 | ) | 2018 (1 | ) | 2017 (1 | ) | |||||||||||||
Net sales | $ | 1,809.9 | $ | 1,640.1 | $ | 5,268.1 | $ | 4,760.6 | ||||||||||||
Cost of sales | (1,366.7 | ) |
(2) |
(1,243.1 | ) |
(3) |
(4,048.2 | ) |
(2) |
$ | (3,661.2 | ) |
(3) |
|||||||
Gross profit | 443.2 | 397.0 | 1,219.9 | 1,099.4 | ||||||||||||||||
Selling, general, and administrative expenses | (134.2 | ) |
(2) |
(129.6 | ) | (406.7 | ) |
(2) |
(386.9 | ) | ||||||||||
Other expense, net | (10.5 | ) |
(2) |
(24.8 | ) |
(3) |
(32.2 | ) |
(2) |
(32.4 | ) |
(3)(4) |
||||||||
Income from operations | 298.5 | 242.6 | 781.0 | 680.1 | ||||||||||||||||
Interest expense, net and other | (24.4 | ) | (25.7 | ) | (75.0 | ) | (75.5 | ) | ||||||||||||
Income before taxes | 274.1 | 216.9 | 706.0 | 604.6 | ||||||||||||||||
Provision for income taxes | (67.4 | ) | (77.8 | ) |
(3) |
(172.6 | ) | (204.9 | ) |
(3) |
||||||||||
Net income | $ | 206.7 | $ | 139.1 | $ | 533.4 | $ | 399.7 | ||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 2.19 | $ | 1.47 | $ | 5.65 | $ | 4.24 | ||||||||||||
Diluted | $ | 2.18 | $ | 1.47 | $ | 5.64 | $ | 4.23 | ||||||||||||
Computation of diluted earnings per share under the two class method: | ||||||||||||||||||||
Net income | $ | 206.7 | $ | 139.1 | $ | 533.4 | $ | 399.7 | ||||||||||||
Less: Distributed and undistributed income available to participating securities | (1.6 | ) | (1.1 | ) | (4.1 | ) | (3.4 | ) | ||||||||||||
Net income attributable to PCA shareholders | $ | 205.1 | $ | 138.0 | $ | 529.3 | $ | 396.3 | ||||||||||||
Diluted weighted average shares outstanding | 94.0 | 93.8 | 93.9 | 93.7 | ||||||||||||||||
Diluted earnings per share | $ | 2.18 | $ | 1.47 | $ | 5.64 | $ | 4.23 | ||||||||||||
|
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Supplemental financial information: | ||||||||||||||||||||
Capital spending | $ | 130.4 | $ | 86.9 | $ | 404.3 | $ | 226.2 | ||||||||||||
Cash balance | $ | 293.8 | $ | 370.5 | $ | 293.8 | $ | 370.5 | ||||||||||||
(1) |
Effective January 1, 2018, the Company adopted ASU 2014-09 (Topic 606): Revenue from Contracts with Customers using the modified retrospective method. The new revenue standard provides additional clarity concerning contract fulfillment costs, which resulted in certain costs being classified as Cost of Sales rather than Selling, General, and Administrative expenses in the current period reflected herein. The Company also adopted ASU 2017-07, Compensation: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on January 1, 2018 and applied this standard retrospectively to the prior period reflected herein. This new standard requires the presentation of non-service cost components of net periodic pension expense to be shown separately outside the subtotal of operating income in the income statement. For more information, see Note 2, New and Recently Adopted Accounting Standards, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in “Part I, Item 1. Financial Statements” of our third quarter 2018 report on Form 10-Q, which we plan to file on or about November 7, 2018. |
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(2) | The three and nine months ended September 30, 2018 include the following: | |||||||||||||||||||
a. | $4.0 million and $26.4 million, respectively, of charges related to the announced second quarter 2018 discontinuation of uncoated free sheet and coated one-side grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to a high-performance 100% virgin kraft linerboard machine. The costs were recorded within “Other expense, net” and “Cost of sales”, as appropriate. | |||||||||||||||||||
b. | $1.3 million and $1.8 million, respectively, of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility, which were recorded in “Other expense, net”, "Selling, general, and administrative expenses", and “Cost of sales”, as appropriate. | |||||||||||||||||||
c. | $0.5 million of costs for the property damage insurance deductible for a weather-related incident at one of the corrugated products facilities, which were recorded in "Other expense, net". | |||||||||||||||||||
d. | $0.1 million of charges related to the Sacramento Container acquisition and integration, which were recorded in "Other expense, net". | |||||||||||||||||||
(3) | The three and nine months ended September 30, 2017 include the following: | |||||||||||||||||||
a. | $0.9 million and $1.9 million, respectively, of charges consisting of closure costs related to corrugated products facilities, a paper administration facility, and a lump sum settlement of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities, which were recorded in "Other expense, net". | |||||||||||||||||||
b. | $0.5 million and $0.8 million, respectively, of charges related to the Sacramento Container acquisition and integration costs related to other recent acquisitions, which were recorded in "Other expense, net". | |||||||||||||||||||
c. | $25.3 million of charges related to the announced second quarter 2018 discontinuation of uncoated free sheet and coated one-side grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to a high-performance 100% virgin kraft linerboard machine. The costs were recorded within “Other expense, net” and “Cost of sales”, as appropriate. | |||||||||||||||||||
d. | $3.3 million of tax expense for the change in value of deferred taxes as a result of an internal legal entity consolidation that will simplify future operating activities, which was recorded in "Provision for income taxes". | |||||||||||||||||||
(4) | The nine months ended September 30, 2017 include the following: | |||||||||||||||||||
a. | $5.0 million of costs for the property damage and business interruption insurance deductible corresponding to the February 2017 explosion at our DeRidder, Louisiana mill. | |||||||||||||||||||
b. | $2.3 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico. |
Packaging Corporation of America | |||||||||||||||||||
Segment Information | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(dollars in millions) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Segment sales | |||||||||||||||||||
Packaging | $ | 1,535.1 | $ | 1,346.6 | $ | 4,434.2 | $ | 3,915.0 | |||||||||||
Paper | 254.3 | 271.4 | 774.5 | 784.3 | |||||||||||||||
Corporate and Other | 20.5 | 22.1 | 59.4 | 61.3 | |||||||||||||||
$ | 1,809.9 | $ | 1,640.1 | $ | 5,268.1 | $ | 4,760.6 | ||||||||||||
Segment income (loss) | |||||||||||||||||||
Packaging | $ | 284.4 | $ | 263.2 | $ | 782.3 | $ | 681.7 | |||||||||||
Paper | 32.3 | (2.6 | ) | 55.7 | 52.5 | ||||||||||||||
Corporate and Other | (18.2 | ) | (18.0 | ) | (57.0 | ) | (54.1 | ) | |||||||||||
Income from operations | 298.5 | 242.6 | 781.0 | 680.1 | |||||||||||||||
Interest expense, net and other | (24.4 | ) | (25.7 | ) | (75.0 | ) | (75.5 | ) | |||||||||||
Income before taxes | $ | 274.1 | $ | 216.9 | $ | 706.0 | $ | 604.6 | |||||||||||
Segment income (loss) excluding special items (1) | |||||||||||||||||||
Packaging | $ | 289.9 | $ | 264.3 | $ | 793.3 | $ | 687.5 | |||||||||||
Paper | 32.9 | 23.0 | 73.3 | 78.1 | |||||||||||||||
Corporate and Other | (18.4 | ) | (18.0 | ) | (56.8 | ) | (54.8 | ) | |||||||||||
$ | 304.4 | $ | 269.3 | $ | 809.8 | $ | 710.8 | ||||||||||||
EBITDA excluding special items (1) | |||||||||||||||||||
Packaging | $ | 378.2 | $ | 343.0 | $ | 1,049.0 | $ | 921.7 | |||||||||||
Paper | 44.1 | 37.5 | 113.0 | 120.6 | |||||||||||||||
Corporate and Other | (16.5 | ) | (16.3 | ) | (52.1 | ) | (50.4 | ) | |||||||||||
$ | 405.8 | $ | 364.2 | $ | 1,109.9 | $ | 991.9 | ||||||||||||
(1) | 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. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. 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, because these measures assist in providing a meaningful comparison between periods presented 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. | ||||||||||||||||||
Packaging Corporation of America | ||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
Unaudited | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Packaging | ||||||||||||||||
Segment income | $ | 284.4 | $ | 263.2 | $ | 782.3 | $ | 681.7 | ||||||||
Facilities closure and other costs | 1.5 | 0.6 | 1.6 | 1.6 | ||||||||||||
Acquisition and integration related costs | 0.1 | 0.5 | 0.1 | 0.8 | ||||||||||||
Wallula mill restructuring | 3.4 | — | 8.8 | — | ||||||||||||
Insurance deductible for property damage | 0.5 | — | 0.5 | — | ||||||||||||
DeRidder mill incident | — | — | — | 5.0 | ||||||||||||
Hexacomb working capital adjustment | — | — | — | (1.6 | ) | |||||||||||
Segment income excluding special items (1) | $ | 289.9 | $ | 264.3 | $ | 793.3 | $ | 687.5 | ||||||||
Paper | ||||||||||||||||
Segment income | $ | 32.3 | $ | (2.6 | ) | $ | 55.7 | $ | 52.5 | |||||||
Wallula mill restructuring | 0.6 | 25.3 | 17.6 | 25.3 | ||||||||||||
Facilities closure and other costs | — | 0.3 | — | 0.3 | ||||||||||||
Segment income excluding special items (1) | $ | 32.9 | $ | 23.0 | $ | 73.3 | $ | 78.1 | ||||||||
Corporate and Other | ||||||||||||||||
Segment loss | $ | (18.2 | ) | $ | (18.0 | ) | $ | (57.0 | ) | $ | (54.1 | ) | ||||
Facilities closure and other costs | (0.2 | ) | — | 0.2 | — | |||||||||||
Hexacomb working capital adjustment | — | — | — | (0.7 | ) | |||||||||||
Segment loss excluding special items (1) | $ | (18.4 | ) | $ | (18.0 | ) | $ | (56.8 | ) | $ | (54.8 | ) | ||||
Income from operations | $ | 298.5 | $ | 242.6 | $ | 781.0 | $ | 680.1 | ||||||||
Income from operations, excluding special items (1) | $ | 304.4 | $ | 269.3 | $ | 809.8 | $ | 710.8 | ||||||||
(1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. | ||||||||||||||||
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 September 30, | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
before | Income | Net | Diluted | before | Income | Net | Diluted | ||||||||||||||||||||||||||||||
taxes | Taxes | Income | EPS | taxes | Taxes | Income | EPS | ||||||||||||||||||||||||||||||
As reported | $ | 274.1 | $ | (67.4 | ) | $ | 206.7 | $ | 2.18 | $ | 216.9 | $ | (77.8 | ) | $ | 139.1 | $ | 1.47 | |||||||||||||||||||
Special items (2): | |||||||||||||||||||||||||||||||||||||
Wallula mill restructuring | 4.0 | (1.1 | ) | 2.9 | 0.04 | 25.3 | (9.8 | ) | 15.5 | 0.16 | |||||||||||||||||||||||||||
Facilities closure and other costs | 1.3 | (0.3 | ) | 1.0 | 0.01 | 0.9 | (0.3 | ) | 0.6 | 0.01 | |||||||||||||||||||||||||||
Acquisition and integration related costs | 0.1 | — | 0.1 | — | 0.5 | (0.2 | ) | 0.3 | — | ||||||||||||||||||||||||||||
Insurance deductible for property damage | 0.5 | (0.1 | ) | 0.4 | — | — | — | — | — | ||||||||||||||||||||||||||||
Internal legal entity consolidation | — | — | — | — | — | 3.3 | 3.3 | 0.04 | |||||||||||||||||||||||||||||
Total special items | 5.9 | (1.5 | ) | 4.4 | 0.05 | 26.7 | (7.0 | ) | 19.7 | 0.21 | |||||||||||||||||||||||||||
Excluding special items | $ | 280.0 | $ | (68.9 | ) | $ | 211.1 | $ | 2.23 | $ | 243.6 | $ | (84.8 | ) | $ | 158.8 | $ | 1.68 | |||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
before | Income | Net | Diluted | before | Income | Net | Diluted | ||||||||||||||||||||||||||||||
taxes | Taxes | Income | EPS | taxes | Taxes | Income | EPS | ||||||||||||||||||||||||||||||
As reported | $ | 706.0 | $ | (172.6 | ) | $ | 533.4 | $ | 5.64 | $ | 604.6 | $ | (204.9 | ) | $ | 399.7 | $ | 4.23 | |||||||||||||||||||
Special items (2): | |||||||||||||||||||||||||||||||||||||
Wallula mill restructuring | 26.4 | (6.6 | ) | 19.8 | 0.22 | 25.3 | (9.7 | ) | 15.6 | 0.16 | |||||||||||||||||||||||||||
Facilities closure and other costs | 1.8 | (0.5 | ) | 1.3 | 0.01 | 1.9 | (0.7 | ) | 1.2 | 0.01 | |||||||||||||||||||||||||||
Acquisition and integration related costs | 0.1 | — | 0.1 | — | 0.8 | (0.3 | ) | 0.5 | 0.01 | ||||||||||||||||||||||||||||
Insurance deductible for property damage | 0.5 | (0.1 | ) | 0.4 | — | — | — | — | — | ||||||||||||||||||||||||||||
DeRidder mill incident | — | — | — | — | 5.0 | (1.9 | ) | 3.1 | 0.03 | ||||||||||||||||||||||||||||
Hexacomb working capital settlement | — | — | — | — | (2.3 | ) | 0.9 | (1.4 | ) | (0.01 | ) | ||||||||||||||||||||||||||
Internal legal entity consolidation | — | — | — | — | — | 3.3 | 3.3 | 0.04 | |||||||||||||||||||||||||||||
Total special items | 28.8 | (7.2 | ) | 21.6 | 0.23 | 30.7 | (8.4 | ) | 22.3 | 0.24 | |||||||||||||||||||||||||||
Excluding special items | $ | 734.8 | $ | (179.8 | ) | $ | 555.0 | $ | 5.87 | $ | 635.3 | $ | (213.3 | ) | $ | 422.0 | $ | 4.47 | |||||||||||||||||||
(1) | Net income and earnings per share excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures 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, because these measures assist in providing a meaningful comparison between periods presented 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) |
Pre-tax special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded and this rate is adjusted for each subsequent quarter to be consistent with the estimated annual effective tax rate, in accordance with ASC 270, Interim Reporting, and ASC 740-270, Income Taxes – Intra Period Tax Allocation. For all periods presented, income taxes on pre-tax special items represent the current amount of tax. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1. |
Packaging Corporation of America | ||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
Unaudited | ||||||||||||
(dollars in millions) | ||||||||||||
EBITDA and EBITDA Excluding Special Items (1) | ||||||||||||
EBITDA represents income before interest, income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Net income | $ | 206.7 | $ | 139.1 | $ | 533.4 | $ | 399.7 | ||||
Interest expense, net and other | 24.4 | 25.7 | 75.0 | 75.5 | ||||||||
Provision for income taxes | 67.4 | 77.8 | 172.6 | 204.9 | ||||||||
Depreciation, amortization, and depletion | 101.5 | 97.5 | 313.7 | 283.7 | ||||||||
EBITDA (1) | $ | 400.0 | $ | 340.1 | $ | 1,094.7 | $ | 963.8 | ||||
Special items: | ||||||||||||
Wallula mill restructuring | 3.7 | 22.7 | 13.0 | 22.7 | ||||||||
Facilities closure and other costs | 1.5 | 0.9 | 1.6 | 1.9 | ||||||||
Acquisition and integration related costs | 0.1 | 0.5 | 0.1 | 0.8 | ||||||||
Insurance deductible for property damage | 0.5 | — | 0.5 | — | ||||||||
DeRidder mill incident | — | — | — | 5.0 | ||||||||
Hexacomb working capital adjustment | — | — | — | (2.3 | ) | |||||||
EBITDA excluding special items (1) | $ | 405.8 | $ | 364.2 | $ | 1,109.9 | $ | 991.9 | ||||
(1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. | ||||||||||||
Packaging Corporation of America | ||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
Unaudited | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
The following table reconciles segment income (loss) to EBITDA excluding special items: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Packaging | ||||||||||||||||
Segment income | $ | 284.4 | $ | 263.2 | $ | 782.3 | $ | 681.7 | ||||||||
Depreciation, amortization, and depletion | 88.6 | 78.7 | 256.3 | 234.2 | ||||||||||||
EBITDA (1) | 373.0 | 341.9 | 1,038.6 | 915.9 | ||||||||||||
Facilities closure and other costs | 1.5 | 0.6 | 1.6 | 1.6 | ||||||||||||
Acquisition and integration related costs | 0.1 | 0.5 | 0.1 | 0.8 | ||||||||||||
Wallula mill restructuring | 3.1 | — | 8.2 | — | ||||||||||||
Insurance deductible for property damage | 0.5 | — | 0.5 | — | ||||||||||||
DeRidder mill incident | — | — | — | 5.0 | ||||||||||||
Hexacomb working capital adjustment | — | — | — | (1.6 | ) | |||||||||||
EBITDA excluding special items (1) | $ | 378.2 | $ | 343.0 | $ | 1,049.0 | $ | 921.7 | ||||||||
Paper | ||||||||||||||||
Segment income | $ | 32.3 | $ | (2.6 | ) | $ | 55.7 | $ | 52.5 | |||||||
Depreciation, amortization, and depletion | 11.2 | 17.1 | 52.5 | 45.1 | ||||||||||||
EBITDA (1) | 43.5 | 14.5 | 108.2 | 97.6 | ||||||||||||
Wallula mill restructuring | 0.6 | 22.7 | 4.8 | 22.7 | ||||||||||||
Facilities closure and other costs | — | 0.3 | — | 0.3 | ||||||||||||
EBITDA excluding special items (1) | $ | 44.1 | $ | 37.5 | $ | 113.0 | $ | 120.6 | ||||||||
Corporate and Other | ||||||||||||||||
Segment loss | $ | (18.2 | ) | $ | (18.0 | ) | $ | (57.0 | ) | $ | (54.1 | ) | ||||
Depreciation, amortization, and depletion | 1.7 | 1.7 | 4.9 | 4.4 | ||||||||||||
EBITDA (1) | (16.5 | ) | (16.3 | ) | (52.1 | ) | (49.7 | ) | ||||||||
Hexacomb working capital adjustment | — | — | — | (0.7 | ) | |||||||||||
EBITDA excluding special items (1) | $ | (16.5 | ) | $ | (16.3 | ) | $ | (52.1 | ) | $ | (50.4 | ) | ||||
EBITDA excluding special items (1) | $ | 405.8 | $ | 364.2 | $ | 1,109.9 | $ | 991.9 | ||||||||
(1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005987/en/
Source:
Packaging Corporation of America
Barbara Sessions
INVESTOR
RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com