Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
KapStone Paper and Packaging Corporation to Release Second Quarter 2008 Earnings on Monday, August 4, 2008
Date : 07/25/2008 @ 11:21AM
Source : PR Newswire
Stock : Kapstone Paper And Packaging (MM) (KPPC)
Quote : 7.89 0.0 (0.00%) @ 7:05AM
KapStone Paper and Packaging Corporation to Release Second Quarter 2008 Earnings on Monday, August 4, 2008
NORTHBROOK, Ill., July 25 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (NASDAQ:KPPC), a leading North American producer of unbleached kraft paper grades and inflatable dunnage bags, will release its second quarter 2008 earnings after the financial markets close on Monday, August 4, 2008.
The Company will host a conference call on Tuesday, August 5, 2008, at 11 a.m. ET (10 a.m. CT) to review the results for the quarter. All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, http://www.kapstonepaper.com/, or for those unable to access the webcast, the following dial-in numbers are available:
Domestic: 866.700.0133
International: 617.213.8831
Participant Passcode: 97512882
The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com/, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com/) a password-protected event management site.
Replay of the webcast will also be on the Web site beginning at approximately 1 p.m. ET the same day.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper grades and inflatable dunnage bags. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Charleston, SC, and Roanoke Rapids, NC, a lumber mill in Summerville, SC, and Ride Rite(R), a dunnage bag plant in Fordyce, AR. The business employs approximately 1,750 people.
DATASOURCE: KapStone Paper and Packaging Corporation
CONTACT: Andrea Tarbox, +1-847-239-8812, for KapStone Paper and
Packaging Corporation
Web site: http://www.kapstonepaper.com/
KapStone Completes Acquisition of MeadWestvaco's Charleston Kraft Division
Date : 07/01/2008 @ 7:07PM
Source : PR Newswire
Stock : Kapstone Paper And Packaging (MM) (KPPC)
Quote : 6.56 0.1 (1.55%) @ 9:40AM
<< Back Quote Chart Financials Trades
KapStone Completes Acquisition of MeadWestvaco's Charleston Kraft Division
NORTHBROOK, Ill., July 1 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (NASDAQ:KPPC) today announced it has completed the acquisition of the Charleston Kraft Division of MeadWestvaco Corporation (CKD) from MeadWestvaco Corporation (NYSE:MWV). Under the terms of the sale, KapStone acquired MWV's kraft paper mill in North Charleston, a lumber mill in Summerville, SC and chip mills located in Elgin, Hampton, Andrews and Kinards, SC, as well as 100 percent of Cogen South, LLC, the mill's on-site cogeneration facility. In 2007, the North Charleston mill produced 833,000 tons of saturating kraft, linerboard, and kraft folding carton board. MWV will continue to provide wood fiber for the North Charleston mill through a fiber supply agreement.
"The acquisition of the Charleston Kraft Division of MeadWestvaco Corporation is an important step for our company," said Roger W. Stone, Chairman and Chief Executive Officer of KapStone. "It expands our platform from which we intend to achieve our strategic vision. We are anxious to build on the success of this business while integrating it with our existing Kraft Papers Business. We will continue to explore other strategic acquisitions."
"We are very excited about the acquisition of the CKD," added Matt Kaplan, President of KapStone. "The Charleston mill has been successful in creating a strong global business based on long-term customer relationships resulting from outstanding quality and service. We believe the business is well positioned for the future."
The $485 million base purchase price was adjusted to reflect estimated working capital and capital expenditure adjustments. As a result, KapStone paid MWV approximately $475 million in cash, subject to certain post-closing adjustments. Funding for the acquisition came from borrowing under a new $515 million senior secured credit facility announced on June 12, 2008 plus $40 million of borrowings from the issuance of senior notes.
KapStone expects to file a Current Report on Form 8-K in the near future that includes unaudited pro forma combined financial statements to reflect the acquisition of CKD. Based on KapStone's and CKD's results for the year ended December 31, 2007, on a pro forma basis, the combined companies would have had net sales of approximately $779 million, net income of approximately $26 million and adjusted EBITDA of approximately $119 million. Pro forma combined adjusted EBITDA represents the combined earnings before interest, income taxes, depreciation and amortization of KapStone and CKD, eliminating a one-time non-cash purchase accounting adjustment for a KapStone 2007 inventory revaluation. A reconciliation between pro forma combined net income and pro forma combined adjusted EBITDA is provided in the table below. The pro forma combined results do not reflect anticipated cost savings and synergies.
(In thousands) (Unaudited)
Year Ended December 31, 2007
Pro forma combined net income $ 26,031 Interest expense 30,937 Tax provision 10,702 Depreciation of amortization 49,644
Pro forma combined EBITDA (Non-GAAP) $117,314
One-time non-cash charge for KapStone 2007 inventory revaluation 1,526
Pro forma combined adjusted EBITDA (Non-GAAP) $118,840 (1)
(1) For the year ended December 31, 2007, MWV Corporate allocated or charged to CKD $23,178 of expense included in cost of sales and selling, general and administrative expenses. Kapstone anticipates that the annual costs to provide similar services for CKD will be approximately $19,700 less. These savings from the elimination of corporate allocations have been excluded as pro forma adjustments. We expect all of these cost savings will be realized on an annualized basis by the earlier of one year after the closing or the early termination of MWV transition services. The pro forma combined adjusted EBITDA does not include any one-time or transitional costs that may be incurred as CKD's operations and administrative support are transitioned to KapStone. No assurance can be given that these cost savings can be achieved in the amounts or during the periods predicted.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation, is a leading North American producer of unbleached kraft paper grades and converter of inflatable dunnage bags. The business employs approximately 1,750 people.
Non-GAAP Financial Measures
Investors are cautioned that pro forma combined net income, pro forma combined EBITDA and pro forma combined adjusted EBITDA information contained in this press release are not financial measures under U.S. generally accepted accounting principles (GAAP). In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with GAAP. These non-GAAP financial measures are provided to enhance the user's overall understanding of the underlying operating performance of the KapStone and CKD business combined. KapStone believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance and liquidity of the company. Management uses Adjusted EBITDA for evaluating KapStone's performance against competitors and as a primary measure for employees' incentive programs.
Pro Forma Combined EBITDA represents earnings before interest, income taxes, depreciation and amortization. Pro Forma Combined Adjusted EBITDA is computed by eliminating from Pro Forma Combined EBITDA a one-time non-cash purchase accounting adjustment made in connection with KapStone's 2007 acquisition of KPB from International Paper Company. Pro Forma Combined adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to earnings before income taxes (or any other performance measure under GAAP) as a measure of performance or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity.
Kapstone Enters Into New Senior Credit Agreement for Acquisition of Charleston Division
Date : 06/12/2008 @ 5:09PM
Source : PR Newswire
Stock : Kapstone Paper And Packaging (MM) (KPPC)
Quote : 6.89 -0.06 (-0.86%) @ 11:40AM
<< Back Quote Chart Financials Trades
Kapstone Enters Into New Senior Credit Agreement for Acquisition of Charleston Division
NORTHBROOK, Ill., June 12 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (NASDAQ:KPPC) today announced that it has entered into a senior secured credit agreement for an aggregate of up to $555 million with Bank of America, N.A., as administrative agent. The credit facility evidenced by the credit agreement was successfully syndicated to over 15 other financial institutions. Proceeds from the credit facility, together with cash on hand, are expected to be used to pay for KapStone's purchase of the North Charleston Kraft Division (the "Charleston Division") from MeadWestvaco Corporation including related transaction fees, to repay KapStone's existing credit facility balance, and to provide for KapStone's working capital requirements. The funding under the credit agreement is subject to certain closing conditions, including the simultaneous closing of the acquisition of the Charleston Division, which is expected to occur in the third quarter of this year.
KapStone's CEO, Roger Stone, said, "Successfully securing this credit facility in today's difficult credit markets is strong affirmation of the strength that the Charleston acquisition will bring to KapStone. The transaction is continuing to progress as we anticipated, and we look forward to closing on the acquisition in the third quarter."
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of kraft paper and inflatable dunnage bags. The Company is the parent corporation of KapStone Kraft Paper Corporation which includes a paper mill in Roanoke Rapids, NC, and RideRite, an inflatable dunnage bag manufacturer in Fordyce, AR. The business employs approximately 700 people.
Forward Looking Statements
Certain matters discussed in this news release, including statements regarding the proposed acquisition, the expected timetable for completing the transaction, future financial and operating results, benefits and synergies of the transaction, future opportunities for KapStone after the acquisition and any other statements about management's future expectations, beliefs, goals, plans, or prospects constitute "forward-looking statements" intended to qualify for the safe harbor from liability established by the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, assumptions and current expectations and are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented in these forward-looking statements. The potential risks and uncertainties include, among others, the possibility that the acquisition of the Charleston Division will not close or that the closing may be delayed, the ability of KapStone to successfully integrate Charleston's operations and employees, the ability to realize anticipated synergies and cost savings, general economic conditions and industry specific conditions. In addition, please refer to the documents that KapStone files with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K. These filings identify and address other important risk factors that could cause KapStone's financial and operational results to differ materially from those contained in the forward-looking statements set forth in this document. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except to the extent required by law, KapStone undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
DATASOURCE: KapStone Paper and Packaging Corporation
CONTACT: Investor Relations, Andrea Tarbox, Vice President and CFO of
KapStone Paper and Packaging Corporation, +1-847-239-8812
Web site: http://www.kapstonepaper.com/
KapStone Reports 2008 First Quarter Results
Monday May 5, 5:00 pm ET
Net Income Up 2% over 2007
- Basic and Diluted EPS of $0.29 and $0.21, respectively
- Cash Flows from Operations of $9.9 Million
- Cash Balance Exceeds Debt by $11.3 Million
NORTHBROOK, Ill., May 5 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (Nasdaq: KPPC - News) today reported results for the first quarter ended March 31, 2008.
$ 000's Three Months Ended March 31,
2008 2007
Net Sales $67,129 $65,427
Net Income $7,230 $7,078
Net Income per Share - Basic $0.29 $ 0.28
Net Income per Share - Diluted $0.21 $0.21
EBITDA $14,238 $14,046
First Quarter Operating Highlights
First quarter 2008 net sales of $67.1 million were up $1.7 million, or 2.6%, and net income of $7.2 million was up 2.1% compared to the same quarter last year.
For the three months ended March 31, 2008, unbleached kraft segment net sales increased by $1.9 million, or 3.2%, to $60.4 million compared to $58.5 million for the three months ended March 31, 2007. Average revenue per ton increased $34/ton, approximately $3.6 million, due to the full realization of 2007 price increases. The February 2008 kraft paper price increase had a minimal impact during the quarter and is expected to be realized in the second quarter of 2008. Volume of paper sold decreased by 3,303 tons driven by greater 2007 inventory sales volumes and lighter grade mix, partially offset by one additional operating day in 2008.
Unbleached kraft segment operating income increased by $1.1 million, or 8.1%, to $14.6 million for the three months ended March 31, 2008 compared to $13.5 million for the three months ended March 31, 2007. Higher average revenue per ton contributed $3.6 million of the increased operating income. The impact of the pricing gains was partially offset by lower volume of $1.4 million. Inflation on energy, chemicals, freight and other costs negatively impacted operating income by $2.0 million for the quarter ended March 31, 2008. In addition, 2007 operating income included a $1.2 million non-cash purchase accounting charge adjusting acquired finished goods inventory to fair value. Operating income in the quarter ended March 31, 2008, was also negatively impacted by production levels that were 2.5% below the similar period in 2007.
For the three months ended March 31, 2008, net sales for the dunnage bag segment increased by $0.1 million, or 1.3%, to $7.9 million compared to $7.8 million for the three months ended March 31, 2007 mainly due to a 2.8% increase in unit sales. Average revenue per bag of $3.76 decreased by $0.04 or 1.1%, for the three months ended March 31, 2008 compared to the similar period in the prior year due to increased price competition in 2-ply bags.
Dunnage bag segment operating income decreased by $0.2 million, or 13.3%, to $1.3 million for the three months March 31, 2008 compared to $1.5 million for the three months ended March 31, 2007. Unfavorable volume/mix, lower average revenue per bag, inflation on raw material costs and higher amortization expenses contributed approximately $0.5 million of the reduction to operating income. Operating income for the quarter ended March 31, 2007, included a $0.3 million non-cash purchase accounting charge adjusting acquired finished goods inventory to fair value.
Corporate expenses for the three months ended March 31, 2008 totaled $4.2 million compared to $3.1 million for the year three months March 31, 2007. The increase of $1.1 million is due to higher compensation related costs of $0.7 million reflecting the hiring of corporate employees taking place mainly during the second half of 2007 and early 2008 in anticipation of terminating the transitional services agreement with International Paper Company ("IP"). For the quarter ended March 31, 2008, transitional support services from IP totaled $0.7 million. In addition, professional fees and occupancy costs were higher by $0.2 million in quarter ended March 31, 2008.
Cash Flow and Working Capital
Net cash from operating activities for the quarter ended March 31, 2008 totaled $9.9 million. Capital expenditures of $2.3 million for the 2008 period were primarily spent on the Company's ERP system implementation and equipment upgrades and replacements for the unbleached kraft facility. Working capital at March 31, 2008 was $71.4 million including cash and cash equivalents of $60.3 million. With cash and cash equivalents of $60.3 million and combined current and long-term debt balances of $49.0 million at March 31, 2008, the Company is $11.3 million net cash positive. In April 2008, the Company paid $11.6 million representing the mandatory prepayment on its long-term debt based on its 2007 excess cash flow results.
Roger Stone, KapStone's chairman and chief executive officer, said, "As we begin our second year, we are optimistic. Following several rough operating months since our annual shutdown last year resulting in lower production levels than we would have expected, our Roanoke Rapids mill is now running smoothly. While we are concerned about the impact of inflation on our costs, particularly energy related costs, our $40 per ton kraft paper increase has been fully implemented and should more than offset the impact of those cost increases. With our backlogs very strong, our favorable operating metrics, and the pending acquisition of the MeadWestvaco North Charleston Kraft Division, we are excited about the future of our business."
Pending Acquisition of the Charleston Kraft Division of MeadWestvaco Corporation
On April 4, 2008, KapStone signed an asset purchase agreement with MeadWestvaco Corporation (MW) to purchase substantially all of the assets and assume certain liabilities of MW's North Charleston Kraft Division (CKD) for $485 million, subject to certain post-closing adjustments. The acquisition consists of an unbleached kraft paper manufacturing facility and electric cogeneration facility in North Charleston, South Carolina and a lumber business located in Summerville, South Carolina. KapStone expects to close the acquisition by September 30, 2008, subject to customary closing conditions, including regulatory review and receipt of financing
Conference Call
KapStone has scheduled a conference call at 11 a.m. EDT, May 6, 2008, to discuss the Company's financial results for the quarter ended March 31, 2008. The conference call will be available via the Internet by accessing the Company's web site at http://www.kapstonepaper.com. A replay of the webcast will be available for 7 days following the call.
About the Company
On January 2, 2007, KapStone Paper and Packaging Corporation completed the acquisition of substantially all of the assets and assumed certain liabilities, of the Kraft Papers Business, or KPB, a division of IP. The assets include an unbleached kraft paper manufacturing facility in Roanoke Rapids, North Carolina and Ride Rite® Converting, an inflatable dunnage bag manufacturer located in Fordyce, Arkansas. Prior to the acquisition of KPB, KapStone, a special purpose acquisition corporation or "blank check company", had no operations.
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation, is a leading North American producer of kraft paper and converter of inflatable dunnage bags. The business employs approximately 700 people.
Non-GAAP Financial Measures
Investors are cautioned that EBITDA information contained in this press release is not a financial measure under U.S. generally accepted accounting principles (GAAP). In addition, it should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. This non-GAAP financial measure is provided to enhance the user's overall understanding of the Company's current financial performance and the Company's prospects for the future. The Company believes that this non-GAAP measure provides useful information to investors because it improves the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance and liquidity of the Company. Management uses EBITDA for evaluating the Company's performance against competitors and as a primary measure for employees' incentive programs and potential future contingent earn-out payments to IP.
FTC Grants Early Termination of Waiting Period for KapStone Paper and Packaging Corporation
NORTHBROOK, Ill., May 6 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (NASDAQ:KPPC) today reported that KapStone Paper and Packaging Corporation ("KapStone") was notified on May 5, 2008 by the Federal Trade Commission that early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 was granted with respect to KapStone's pending acquisition of substantially all of the assets of MeadWestvaco South Carolina, LLC and MeadWestvaco Corporation (collectively "MeadWestvaco") used in the manufacture and distribution of unbleached saturating kraft, unbleached coated kraft folding carton board and unbleached kraft linerboard at MeadWestvaco's paper mill in Charleston, South Carolina, a related lumber mill and five chip mills, including one on-site at the Summerville lumber mill (collectively, the "Business"). The Company expects to close the deal by the end of the third quarter of 2008, subject to customary closing conditions including finalization of financing.
About the Company
On January 2, 2007, KapStone Paper and Packaging Corporation completed the acquisition of substantially all of the assets and assumed certain liabilities, of the Kraft Papers Business, or KPB, a division of IP. The assets include an unbleached kraft paper manufacturing facility in Roanoke Rapids, North Carolina and Ride Rite(R) Converting, an inflatable dunnage bag manufacturer located in Fordyce, Arkansas. Prior to the acquisition of KPB, KapStone, a special purpose acquisition corporation or "blank check company", had no operations.
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of kraft paper and converter of inflatable dunnage bags. The business employs approximately 700 people.
KapStone Schedules First Quarter 2008 Earnings Release for Monday, May 5, 2008
NORTHBROOK, Ill., April 29 /PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (Nasdaq: KPPC), a leading North American producer of kraft paper and converter of inflatable dunnage bags, will release first quarter 2008 earnings after the financial markets close on Monday, May 5, 2008.
The Company will host a conference call on Tuesday, May 6, at 11 a.m. ET (10 a.m. CT) to review the results for the quarter. All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:
Domestic: 800.320.2978
International: 617.614.4923
Participant Passcode: 49556846
The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com) a password-protected event management site.
Replay of the webcast will also be on the Web site beginning at approximately 1 p.m. ET the same day through May 13, 2008. Replay dial in number is 888.286.8010 and the participant passcode is 16401957.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of kraft paper and inflatable dunnage bags. The company is the parent company of KapStone Kraft Paper Corporation which includes a paper mill in Roanoke Rapids, NC, and Ride Rite(R), a dunnage bag plant in Fordyce, AR. The business employs approximately 700 people.
SOURCE KapStone Paper and Packaging Corporation
Source: PR Newswire (April 29, 2008 - 1:06 PM EDT)
News by QuoteMedia
www.quotemedia.com
April 7, 2008 - 10:00 AM EDT
KapStone to Purchase MeadWestvaco's North Charleston Kraft Division
Building Strength, Flexibility and Profitability
/PRNewswire-FirstCall/ -- KapStone Paper and Packaging Corporation (Nasdaq: KPPC) has signed an agreement with MeadWestvaco Corporation (NYSE: MWV) to purchase its North Charleston Kraft Division ('Charleston') and related assets for $485 million in cash, subject to certain post-closing adjustments. KapStone expects to close the deal by the end of third quarter of 2008, subject to customary closing conditions, including regulatory review and receipt of financing.
KapStone's CEO, Roger Stone, said, 'The acquisition of MWV's Charleston Kraft Division represents an important step for our company. It strengthens our product portfolio by adding saturating kraft and unbleached kraft board and enhances our modest position in the linerboard market. The acquisition also provides us with the opportunity to participate in geographic markets that we do not currently serve.'
'We are very excited about this transaction,' added Matt Kaplan, KapStone's COO. 'The Charleston mill and related businesses have been successful in creating strong, long-term customer relationships resulting from outstanding service, quality, and innovation. We believe this business is a wonderful fit with our current assets and positions us well for the future.'
KapStone will become a leader in kraft paper and saturating kraft, and the acquisition is expected to intensify KapStone's focus in a very attractive segment of the industrial paper industry. The 2007 aggregate revenues for KapStone and Charleston are expected to be approximately $780 million, and the acquisition is expected to provide substantial free cash flow. KapStone believes that the synergy opportunities for this acquisition are expected to be at least $2.5 million per year with half of the gains to be realizable within the first year of closing of the acquisition. KapStone has received a debt commitment letter from LaSalle Bank National Association and Banc of America Securities LLC for a $585 million senior secured credit facility. The $585 million credit facility is expected to consist of a $100 million revolving credit facility and a $485 million term loan maturing over five years.
Followers
|
4
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
57
|
Created
|
04/10/08
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |