04.25.17
Graphic Packaging Holding Company reported net income for first quarter 2017 of $37.0 million, or $0.12 per share, based on 314.1 million weighted average diluted shares. This compares to first quarter 2016 net income of $57.5 million, or $0.18 per share, based on 324.2 million weighted average diluted shares.
First quarter 2017 net Income was negatively impacted by $5.7 million (net of a $2.9 million tax benefit) of business combinations and other special charges.
Net sales increased 2.7% to $1,061.5 million in the first quarter of 2017, compared to $1,034.0 million in the prior year period. The $27.5 million increase was driven by $56.2 million of improved volume/mix related to acquisitions and stable core volumes. The net sales increase was partially offset by $14.9 million of unfavorable foreign exchange rates and $13.8 million of lower pricing.
“Our first quarter Adjusted EBITDA was lower as expected at $161 million compared to $193 million in the prior year period. Net sales were up 2.7%, reflecting recent acquisitions and stable core volumes, consistent with the trends we experienced in 2016. Operating efficiencies improved during the quarter and we successfully upgraded two headboxes on the number six paper machine at our West Monroe, Louisiana mill” said president and CEO Michael Doss. “The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs associated with the upgrade of the two headboxes.
“We are executing price increases to offset the unprecedented recycled fiber input cost inflation we are experiencing and expect margins to improve from our pricing actions during the second half of 2017, and in 2018,” Doss added.
EBITDA for the first quarter of 2017 was $152.3 million, or $30.6 million lower than the first quarter of 2016.
Total debt (long-term, short-term and current portion) increased $100.1 million during the first quarter of 2017 to $2,267.9 million compared to the fourth quarter of 2016. At quarter end, the company’s net leverage ratio was 3.05 times adjusted EBITDA compared to 2.76 times at the end of 2016.
April 25, 2017
First quarter 2017 net Income was negatively impacted by $5.7 million (net of a $2.9 million tax benefit) of business combinations and other special charges.
Net sales increased 2.7% to $1,061.5 million in the first quarter of 2017, compared to $1,034.0 million in the prior year period. The $27.5 million increase was driven by $56.2 million of improved volume/mix related to acquisitions and stable core volumes. The net sales increase was partially offset by $14.9 million of unfavorable foreign exchange rates and $13.8 million of lower pricing.
“Our first quarter Adjusted EBITDA was lower as expected at $161 million compared to $193 million in the prior year period. Net sales were up 2.7%, reflecting recent acquisitions and stable core volumes, consistent with the trends we experienced in 2016. Operating efficiencies improved during the quarter and we successfully upgraded two headboxes on the number six paper machine at our West Monroe, Louisiana mill” said president and CEO Michael Doss. “The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs associated with the upgrade of the two headboxes.
“We are executing price increases to offset the unprecedented recycled fiber input cost inflation we are experiencing and expect margins to improve from our pricing actions during the second half of 2017, and in 2018,” Doss added.
EBITDA for the first quarter of 2017 was $152.3 million, or $30.6 million lower than the first quarter of 2016.
Total debt (long-term, short-term and current portion) increased $100.1 million during the first quarter of 2017 to $2,267.9 million compared to the fourth quarter of 2016. At quarter end, the company’s net leverage ratio was 3.05 times adjusted EBITDA compared to 2.76 times at the end of 2016.
April 25, 2017
