11.03.14
RockTenn reported earnings for the quarter ended Sept. 30, 2014 of $1.06 per diluted share and adjusted earnings of $1.31 per diluted share. Net sales of $2,608 million for the fourth quarter of fiscal 2014 increased $123 million compared to the fourth quarter of fiscal 2013 primarily as a result of the Tacoma Mill and display acquisitions completed in fiscal 2014.
Earnings per diluted share and adjusted earnings per diluted share in the table above, as well as the entire press release, reflect the two-for-one stock split in the form of a stock dividend that was effective on Aug. 27, 2014.
“Our team delivered another quarter of solid operating results as measured by our adjusted earnings per share of $1.31 and free cash flow per share of $1.80,
RockTenn CEO Steve Voorhees said. “For all of fiscal 2014, we generated $6.10 per share in free cash flow for the year, up 9% over last year and representing a yield in excess of 10% on our current stock price. We implemented our balanced capital allocation approach by investing $534 million in capital expenditures, $474 million in acquisitions and returning $337 million to our shareholders in dividends and share repurchases. Our strong balance sheet and cash flow provide us the flexibility to continue to invest to sustain and improve our operating performance.”
Segment income of $340 million increased $8 million compared to the prior year quarter primarily due to the impact of an estimated $41 million in productivity improvements and income from the acquisitions partially offset by increased commodity and other costs across its business.
Corrugated Packaging segment shipments of approximately 2,075,000 tons increased 8.0% or approximately 153,000 tons compared to the prior year quarter primarily as a result of the Tacoma Mill acquisition. Consumer Packaging segment shipments of approximately 409,000 tons increased 1.4% or approximately 6,000 tons compared to the prior year quarter.
Corrugated Packaging segment net sales increased $82 million to $1,826 million due to the Tacoma Mill acquisition. Segment income increased $11 million to $248 million in the fourth quarter of fiscal 2014 compared to the prior year quarter as higher volumes from the acquisition and productivity improvements were partially offset by the impact of increased export volumes on average selling prices and higher commodity and other costs. Corrugated Packaging segment EBITDA margin was 20.8% for the fourth quarter of fiscal 2014, flat compared to the prior year quarter.
Consumer Packaging segment net sales increased $30 million to $525 million in the fourth quarter of fiscal 2014 compared to the prior year quarter primarily due to higher selling prices and volumes. Segment income increased $6 million to $72 million in the fourth quarter of fiscal 2014, primarily reflecting higher selling prices which were partially offset by the impact of higher commodity costs and other items. Consumer Packaging segment EBITDA margin was 18.1% for the fourth quarter of fiscal 2014, up slightly compared to the prior year quarter.
Merchandising Displays segment net sales increased $45 million over the prior year fourth quarter to $229 million, primarily due to higher volumes and the impact of two display acquisitions completed in fiscal 2014. Segment income decreased $8 million to $15 million in the fourth quarter of fiscal 2014 compared to the prior year quarter primarily as the impact of higher volumes were more than offset by higher costs, including costs associated with supporting and onboarding new business. Merchandising Displays segment EBITDA margin was 8.6% for the fourth quarter of fiscal 2014.
Recycling segment net sales decreased $25 million over the prior year fourth quarter to $88 million, primarily due to lower volumes and recovered fiber prices as a result of soft global markets and collection facility closures. Segment income was relatively flat in the fourth quarter of fiscal 2014 compared to the prior year quarter.
Cash from operations was $403 million in the fourth quarter of fiscal 2014 compared to cash from operations of $310 million in the prior year quarter. Net debt (as defined) increased $6 million in the September quarter to $2.95 billion.
Earnings per diluted share and adjusted earnings per diluted share in the table above, as well as the entire press release, reflect the two-for-one stock split in the form of a stock dividend that was effective on Aug. 27, 2014.
“Our team delivered another quarter of solid operating results as measured by our adjusted earnings per share of $1.31 and free cash flow per share of $1.80,
RockTenn CEO Steve Voorhees said. “For all of fiscal 2014, we generated $6.10 per share in free cash flow for the year, up 9% over last year and representing a yield in excess of 10% on our current stock price. We implemented our balanced capital allocation approach by investing $534 million in capital expenditures, $474 million in acquisitions and returning $337 million to our shareholders in dividends and share repurchases. Our strong balance sheet and cash flow provide us the flexibility to continue to invest to sustain and improve our operating performance.”
Segment income of $340 million increased $8 million compared to the prior year quarter primarily due to the impact of an estimated $41 million in productivity improvements and income from the acquisitions partially offset by increased commodity and other costs across its business.
Corrugated Packaging segment shipments of approximately 2,075,000 tons increased 8.0% or approximately 153,000 tons compared to the prior year quarter primarily as a result of the Tacoma Mill acquisition. Consumer Packaging segment shipments of approximately 409,000 tons increased 1.4% or approximately 6,000 tons compared to the prior year quarter.
Corrugated Packaging segment net sales increased $82 million to $1,826 million due to the Tacoma Mill acquisition. Segment income increased $11 million to $248 million in the fourth quarter of fiscal 2014 compared to the prior year quarter as higher volumes from the acquisition and productivity improvements were partially offset by the impact of increased export volumes on average selling prices and higher commodity and other costs. Corrugated Packaging segment EBITDA margin was 20.8% for the fourth quarter of fiscal 2014, flat compared to the prior year quarter.
Consumer Packaging segment net sales increased $30 million to $525 million in the fourth quarter of fiscal 2014 compared to the prior year quarter primarily due to higher selling prices and volumes. Segment income increased $6 million to $72 million in the fourth quarter of fiscal 2014, primarily reflecting higher selling prices which were partially offset by the impact of higher commodity costs and other items. Consumer Packaging segment EBITDA margin was 18.1% for the fourth quarter of fiscal 2014, up slightly compared to the prior year quarter.
Merchandising Displays segment net sales increased $45 million over the prior year fourth quarter to $229 million, primarily due to higher volumes and the impact of two display acquisitions completed in fiscal 2014. Segment income decreased $8 million to $15 million in the fourth quarter of fiscal 2014 compared to the prior year quarter primarily as the impact of higher volumes were more than offset by higher costs, including costs associated with supporting and onboarding new business. Merchandising Displays segment EBITDA margin was 8.6% for the fourth quarter of fiscal 2014.
Recycling segment net sales decreased $25 million over the prior year fourth quarter to $88 million, primarily due to lower volumes and recovered fiber prices as a result of soft global markets and collection facility closures. Segment income was relatively flat in the fourth quarter of fiscal 2014 compared to the prior year quarter.
Cash from operations was $403 million in the fourth quarter of fiscal 2014 compared to cash from operations of $310 million in the prior year quarter. Net debt (as defined) increased $6 million in the September quarter to $2.95 billion.