KapStone Paper and Packaging Corporation recently reported record results for the third quarter ended September 30, 2014.
Roger W. Stone, Chairman and Chief Executive Officer, stated, "KapStone continued the positive momentum from the second quarter of 2014 into the third quarter and achieved all-time record quarterly results.
"Productivity gains resulting from improved operations and synergy benefits have increased KapStone's EBITDA over the past year. Our capital expenditures are delivering the expected results, and we continue to prudently invest in our operations. During the third quarter, the $50 per ton Kraft paper price increase was fully implemented. At the end of the quarter, we implemented an accounts receivable securitization program which should reduce cash interest expense by $2 million over the next 12 months."
Consolidated net sales of $598 million in the third quarter of 2014 increased by $59 million, or 11 percent compared to $539 million for the 2013 third quarter. The increase is primarily due to the Longview acquisition, which contributed $43 million of additional revenue. Higher sales volumes and prices for the legacy operations also contributed to the increase in revenues. The company sold 715,000 tons of products during the third quarter of 2014 compared to 634,000 tons a year earlier. The Company's average mill selling price of $689 per ton in the third quarter of 2014 increased by $7 per ton compared to the third quarter of 2013 primarily due to the impact of a $50 per ton kraft paper price increase announced in March of 2014 which was fully realized by the end of September.
