KapStone Paper and Packaging Corporation (KS) recently reported results for the third quarter ended September 30, 2015. As compared to 2014's third quarter, results for 2015's third quarter are below:
- Net sales of $808 million up $209 million, or 35 percent
- Net income of $34 million down $20 million, or 37 percent
- Adjusted net income of $49 million down $9 million, or 15 percent
- Adjusted EBITDA of $126 million down $6 million, or 4 percent
- Diluted EPS of $0.35 down $0.21 per share, or 38 percent
- Adjusted diluted EPS of $0.51 down $0.09 per share, or 15 percent
Roger W. Stone, Chairman and Chief Executive Officer, stated, "The strength of our operations generated third quarter free cash flow of $73 million, up 24 percent over the prior year. The increase in cash flow includes $17 million generated by Victory, while our legacy operations also performed very well despite a 12 day work stoppage by our union at the Longview mill. No one wins in a strike, and this strike was no exception. The strike cost KapStone approximately $14 million, and our Longview union employees lost approximately $2 million of wages and benefits.
"Our Charleston and Roanoke Rapids mills set all-time production records for the third quarter, and our corrugated products shipments year-to-date were up 4 percent on an average weekly basis over 2014. The stronger dollar, however, continues to negatively impact our export sales, resulting in lower sales prices for saturating kraft, export containerboard, and extensible grade kraft paper and a less favorable product mix.
