04.27.16
Graphic Packaging Holding Company reported net income for first quarter 2016 of $57.5 million, or $0.18 per share, based upon 324.2 million weighted average diluted shares. This compares to first quarter 2015 net income of $55.1 million, or $0.17 per share, based on 331.9 million weighted average diluted shares.
“We delivered a very solid first quarter,” said president and CEO Michael Doss. “Sales were up 2.6%, driven by both acquisitions and modest volume growth in our core legacy business. Adjusted EBITDA margin increased 70 basis points to 18.7%. The increase was driven by $16.4 million of improved operating performance across the organization, as we remain firmly committed to our culture of continuous improvement and cost reduction.
“While we remain keenly focused on day to day execution, we had a busy quarter as we closed three strategic, tuck-under acquisitions and announced a fourth, which is expected to close in the second quarter. These transactions represent a continuation of our strategy to grow in key end-markets and geographies.”
Net sales increased 2.6% to $1,034.0 million in the first quarter of 2016, compared to $1,008.2 million in the prior year period. The $25.8 million increase was driven by $42.5 million of improved volume/mix, related to acquisitions and a modest improvement in core volumes. The sales increase was partially offset by $8.7 million of unfavorable foreign exchange rates and $8.0 million of lower pricing.
EBITDA for first quarter 2016 was $182.9 million, or $3.8 million higher than the first quarter of 2015. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA increased 6.7% to $193.4 million in the first quarter of 2016 from $181.3 million in the first quarter of 2015.
Total net debt increased $404.2 million during the first quarter of 2016 to $2,238.5 million. In addition to the first quarter seasonal growth in working capital, the increase in net debt and net leverage Ratio was driven by the funding of three acquisitions, share repurchases and the quarterly dividend payment.
“We delivered a very solid first quarter,” said president and CEO Michael Doss. “Sales were up 2.6%, driven by both acquisitions and modest volume growth in our core legacy business. Adjusted EBITDA margin increased 70 basis points to 18.7%. The increase was driven by $16.4 million of improved operating performance across the organization, as we remain firmly committed to our culture of continuous improvement and cost reduction.
“While we remain keenly focused on day to day execution, we had a busy quarter as we closed three strategic, tuck-under acquisitions and announced a fourth, which is expected to close in the second quarter. These transactions represent a continuation of our strategy to grow in key end-markets and geographies.”
Net sales increased 2.6% to $1,034.0 million in the first quarter of 2016, compared to $1,008.2 million in the prior year period. The $25.8 million increase was driven by $42.5 million of improved volume/mix, related to acquisitions and a modest improvement in core volumes. The sales increase was partially offset by $8.7 million of unfavorable foreign exchange rates and $8.0 million of lower pricing.
EBITDA for first quarter 2016 was $182.9 million, or $3.8 million higher than the first quarter of 2015. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA increased 6.7% to $193.4 million in the first quarter of 2016 from $181.3 million in the first quarter of 2015.
Total net debt increased $404.2 million during the first quarter of 2016 to $2,238.5 million. In addition to the first quarter seasonal growth in working capital, the increase in net debt and net leverage Ratio was driven by the funding of three acquisitions, share repurchases and the quarterly dividend payment.