10.23.15
Graphic Packaging reported net income for third quarter 2015 of $60.2 million, or $0.18 per share, based upon 330.4 million weighted average diluted shares. This compares to third quarter 2014 net income of $53.0 million, or $0.16 per share, based on 330.6 million weighted average diluted shares.
Third quarter 2015 net income was negatively impacted by $5.8 million of special charges after taxes. When adjusting for these charges, adjusted net income for the third quarter of 2015 was $66.0 million, or $0.20 per diluted share. This compares to third quarter 2014 adjusted net income of $57.5 million or $0.17 per diluted share.
“We delivered another solid quarter of performance, producing and selling more tons than a year ago and improving our adjusted EBITDA margin by 20 basis points to 18.4%,” said David Scheible, chairman and CEO. “The increases were driven by our ongoing asset optimization strategies, acquisition integration and strong operating performance. We have generated nearly $60 million in productivity benefits through the first three quarters of the year, which puts us on track to deliver full-year performance benefits at the upper end of our range of $60 million to $80 million.”
“In line with our strategy to grow profitably through reinvestments back into the business and acquisitions, I am pleased to announce our definitive agreement to purchase G-Box, S.A. de C.V. (G-Box), a Mexico-based operator of two folding carton facilities,” Scheible added. “G-Box, along with the Oct. 1, 2015 announced acquisition of the assets of Carded Graphics, expands Graphic Packaging’s geographic footprint, manufacturing scope, customer base and range of products. G-Box increases Graphic’s presence in Mexico by adding two folding carton facilities located in Monterrey and Tijuana, while Carded Graphics allows us to better service new and existing customers on the east coast, specifically in the fast growing craft beer markets.”
Net sales increased 1.9%, or $20 million, to $1,070.0 million in the third quarter of 2015 compared to $1,050.0 million in the prior year period. The $20.0 million increase was driven by $56.5 million of improved volume/mix, primarily related to acquisitions. The sales increase was partially offset by $30.2 million of unfavorable foreign exchange rates and $6.3 million of lower pricing.
EBITDA increased 3.7%, or $6.8 million, to $189.1 million in the third quarter of 2015 compared to $182.3 million in the third quarter of 2014. After adjusting both periods for special charges, adjusted EBITDA increased 3.4% to $197.1 million in the third quarter of 2015 from $190.6 million in the third quarter of 2014. When comparing against the prior year quarter, adjusted EBITDA in the third quarter of 2015 was positively impacted by $18.9 million of improved net operating performance and $6.3 million of favorable volume/mix. These benefits were partially offset by $7.3 million in higher costs (primarily for labor and benefits), $7.3 million of unfavorable foreign exchange rates and $4.1 million of lower price, net of commodity deflation. Total net debt declined $84.9 million during the third quarter 2015 to $1,912.7 million.
Third quarter 2015 net income was negatively impacted by $5.8 million of special charges after taxes. When adjusting for these charges, adjusted net income for the third quarter of 2015 was $66.0 million, or $0.20 per diluted share. This compares to third quarter 2014 adjusted net income of $57.5 million or $0.17 per diluted share.
“We delivered another solid quarter of performance, producing and selling more tons than a year ago and improving our adjusted EBITDA margin by 20 basis points to 18.4%,” said David Scheible, chairman and CEO. “The increases were driven by our ongoing asset optimization strategies, acquisition integration and strong operating performance. We have generated nearly $60 million in productivity benefits through the first three quarters of the year, which puts us on track to deliver full-year performance benefits at the upper end of our range of $60 million to $80 million.”
“In line with our strategy to grow profitably through reinvestments back into the business and acquisitions, I am pleased to announce our definitive agreement to purchase G-Box, S.A. de C.V. (G-Box), a Mexico-based operator of two folding carton facilities,” Scheible added. “G-Box, along with the Oct. 1, 2015 announced acquisition of the assets of Carded Graphics, expands Graphic Packaging’s geographic footprint, manufacturing scope, customer base and range of products. G-Box increases Graphic’s presence in Mexico by adding two folding carton facilities located in Monterrey and Tijuana, while Carded Graphics allows us to better service new and existing customers on the east coast, specifically in the fast growing craft beer markets.”
Net sales increased 1.9%, or $20 million, to $1,070.0 million in the third quarter of 2015 compared to $1,050.0 million in the prior year period. The $20.0 million increase was driven by $56.5 million of improved volume/mix, primarily related to acquisitions. The sales increase was partially offset by $30.2 million of unfavorable foreign exchange rates and $6.3 million of lower pricing.
EBITDA increased 3.7%, or $6.8 million, to $189.1 million in the third quarter of 2015 compared to $182.3 million in the third quarter of 2014. After adjusting both periods for special charges, adjusted EBITDA increased 3.4% to $197.1 million in the third quarter of 2015 from $190.6 million in the third quarter of 2014. When comparing against the prior year quarter, adjusted EBITDA in the third quarter of 2015 was positively impacted by $18.9 million of improved net operating performance and $6.3 million of favorable volume/mix. These benefits were partially offset by $7.3 million in higher costs (primarily for labor and benefits), $7.3 million of unfavorable foreign exchange rates and $4.1 million of lower price, net of commodity deflation. Total net debt declined $84.9 million during the third quarter 2015 to $1,912.7 million.