Net sales decreased 0.8% to $1,094.7 million in the second quarter of 2017, compared to $1,103.2 million in the prior year period.
“Our second quarter adjusted EBITDA met our expectations at $171 million compared to $195 million in the prior year period. Net tons sold were up 1.7%, reflecting an acquisition and slightly positive core volumes,” said Michael Doss, president and CEO. “The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs.
“We are executing price increases to offset the unprecedented recycled fiber input cost inflation and expect margins to improve from our pricing actions during the second half of 2017 and in 2018,” Doss added. “Our focus on meeting cash flow commitments, growing cash flow, and returning more of it to stockholders over time has not changed.”
EBITDA for the second quarter of 2017 was $164.5 million, or $23.6 million lower than the second quarter of 2016. After adjusting both periods for expenses associated with business combinations and other special charges, adjusted EBITDA decreased as expected to $170.6 million in the second quarter of 2017 from $195.2 million in the second quarter of 2016.
Total debt (long-term, short-term and current portion) decreased $40.5 million during the second quarter of 2017 to $2,227.4 million compared to the first quarter of 2017. At quarter end, the company’s net leverage ratio was 3.13 times adjusted EBITDA compared to 2.76 times at the end of 2016.