Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  KapStone Paper and Packaging Corp.    KS

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 
The feature you requested does not exist. However, we suggest the following feature:

KapStone Paper and Packaging : & PACKAGING CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-K)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/24/2017 | 10:39pm CET

Overview


    KapStone is the fifth largest producer of containerboard and the largest
producer of kraft paper in North America, based on production capacity. We
operate four containerboard mills and 23 corrugated products manufacturing
plants. Our paper mills produce a combination of containerboard, which we ship
to our corrugated products manufacturing plants and to third party converters,
as well as specialty papers consisting of kraft paper, saturating kraft paper
sold under the trade name Durasorb® and uncoated paper stock board sold under
the trade name Kraftpak®. Our corrugated products manufacturing plants produce a
wide variety of corrugated packaging products, including conventional shipping
containers used to protect and transport manufactured goods and multi-color
boxes and displays with strong visual appeal that help to merchandise the
packaged product in retail locations. In addition, we produce packaging for
fresh fruit and vegetables, processed food, beverages, and other industrial and
consumer products. We also operate a network of 60 distribution centers across
the United States, Mexico and Canada which distribute packaging materials to a
wide variety of customers and industry segments. Substantially all of our
operations are located in the United States, but we ship approximately
17 percent of containerboard and specialty products to customers in Europe, Asia
and Latin America.

Executive Summary

In 2016, consolidated net income was $86.3 million, or $0.88 per diluted share, compared with $106.4 million, or $1.09 per diluted share, for 2015.


    Paper and Packaging segment operating income for 2016 decreased
$42.9 million compared to 2015, primarily due to $100.0 million of lower
containerboard and corrugated products prices and a less favorable product mix,
$6.4 million due to a multiemployer pension plan withdrawal expense and
$6.4 million of costs due to Hurricane Matthew. These decreases were partially
offset by $15.1 million of the 2015 Longview mill work stoppage costs not
incurred in 2016, $13.1 million of savings due to the suspension of certain
employee benefits, $8.9 million of lower management incentives due to lower
earnings, $9.2 million of deflation on material costs and $4.8 million of lower
planned maintenance outage costs.

    Distribution segment operating income for 2016 increased $8.6 million
compared to 2015. The increase in operating income was primarily driven by the
benefit of owning Victory for twelve months in 2016 as compared to seven months
in 2015. Lower costs for corrugated products also contributed to the increase.

Other Operating Highlights for 2016

In 2016, the Company produced 2.7 billion tons of paper, an increase of 2.4 percent over 2015. In addition, Longview and Roanoke Rapids paper mills achieved record production levels.


    In April of 2016, the Company approved a plan to expand its geographical
footprint into Southern California with a new sheet plant with a total estimated
cost of approximately $14.0 million. In conjunction with this, the Company
signed a 10-year lease agreement with a total commitment of approximately
$9.8 million. The new sheet plant started manufacturing boxes in February 2017
and is intended to primarily supply our Victory distribution operations in
Southern California, as well as other KapStone customers.

In June of 2016, the Company issued its annual Sustainability report which highlights the efforts we have made as we continue to pursue environmental excellence, social progress and economic performance.

                                       28

--------------------------------------------------------------------------------

Table of Contents


    In July of 2016, the Company acquired 100 percent of the common stock of
Central Florida Box Corporation, a corrugated products manufacturer located near
Orlando, Florida, for $15.4 million, net of cash acquired.

    In September of 2016, the Company made a $10.6 million investment for a
49 percent equity interest in a sheet feeder operation located in Florida. In
April of 2016, the Company made a $1.25 million investment for a 20 percent
equity interest in a sheet feeder operation located in California. These
investments are expected to increase the Company's vertical integration by over
60,000 tons per year and will ramp up to that level over eighteen months.

In September of 2016, the Company announced the following management changes which became effective January 1, 2017:

        º •
        º Matthew Kaplan became Chief Executive Officer and continues in his
          role as President.

        º •

º Roger W. Stone stepped down as Chief Executive Officer, but continues

          to serve as Executive Chairman.

        º •
        º Timothy P. Keneally retired from his position as Vice President,

General Manager and President of the Container Division. Mr. Keneally

continues as an employee of the Company, in a non-executive role.

º •

º Randy J. Nebel was promoted to Executive Vice President of Integrated

Packaging, responsible for the Company's Mill and Container systems.

In October of 2016, the Company began implementing a $40 per ton price increase for North American containerboard products effective for shipments on October 1, 2016 and an 8 to 10 percent increase for corrugated products effective for shipments beginning November 1, 2016.


    In February of 2017, the Company announced to its customers that, effective
with March 13, 2017 shipments, the price of all North America containerboard
products will increase by $50 per ton, the price for all corrugated boxes will
increase by 10 percent, and the price for all corrugated sheets will increase by
12 percent.

                                       29

--------------------------------------------------------------------------------

Table of Contents

Results of Operations for the Years Ended December 31, 2016, 2015 and 2014

The following table compares results of operations for the years ended December 31, 2016 and 2015:


                              Years Ended December 31,      Increase/       % of Net Sales
                                 2016           2015        (Decrease)     2016       2015
Paper and packaging         $    2,199,309   $ 2,228,676   $    (29,367 )    71.5 %     79.9 %
Distribution                       950,037       582,949        367,088      30.8 %     20.9 %
Intersegment Eliminations          (72,089 )     (22,280 )      (49,809 )    (2.3 )%    (0.8 )%

Net sales                   $    3,077,257   $ 2,789,345   $    287,912     100.0 %    100.0 %

Cost of sales, excluding
depreciation and
amortization                     2,214,872     1,982,686        232,186      72.0 %     71.1 %
Depreciation and
amortization                       182,213       162,179         20,034       5.9 %      5.8 %
Freight and distribution
expenses                           279,023       234,469         44,554       9.1 %      8.4 %
Selling, general, and
administrative expenses            224,127       210,844         13,283       7.3 %      7.6 %
Multiemployer pension
plan withdrawal expense              6,376             -          6,376       0.2 %      0.0 %

Operating income            $      170,646   $   199,167   $    (28,521 )     5.5 %      7.1 %

Foreign exchange loss                2,255         2,556           (301 )     0.0 %      0.1 %
Equity method investments
income                                (548 )           -           (548 )     0.0 %      0.0 %
Loss on debt
extinguishment                         679         1,218           (539 )     0.0 %      0.0 %
Interest expense, net               40,078        33,759          6,319       1.3 %      1.2 %

Income before provision
for income taxes                   128,182       161,634        (33,452 )     4.2 %      5.8 %
Provision for income
taxes                               41,930        55,248        (13,318 )     1.4 %      2.0 %

Net income                  $       86,252   $   106,386   $    (20,134 )     2.8 %      3.8 %




Consolidated net sales for the year ended December 31, 2016 were $3,077.3 million compared to $2,789.3 million for the year ended December 31, 2015, an increase of $288.0 million, or 10.3 percent.


    Paper and Packaging segment net sales of $2,199.3 million decreased by
$29.4 million from the prior year due to $100.0 million of lower prices and a
less favorable product mix, partially offset by $19.8 million of higher domestic
sales volumes and $49.8 million of increased intersegment sales. Average mill
selling price per ton for 2016 was $623 compared to $667 for 2015, reflecting
lower containerboard prices and export kraft paper prices and a less favorable
product mix.

    Distribution segment net sales of $950.0 million increased by $367.1 million
from the prior year, primarily driven by the benefit of owning Victory for the
full year of 2016, as compared to seven months in 2015.

    Paper and Packaging segment sales to customers by product line were as
follows:

                                                                Years Ended December 31,

                          Net Sales (in thousands)      Increase/                       Tons Sold            Increase/
Product Line Revenue:        2016           2015        (Decrease)      %  
       2016          2015        (Decrease)      %
Containerboard /
Corrugated products     $    1,420,339   $ 1,421,802   $     (1,463 )   (0.1 )%   1,796,491     1,714,476         82,015     4.8 %
Specialty paper                692,043       720,588        (28,545 )   (4.0 )%   1,023,559     1,017,905          5,654     0.6 %
Other                           86,927        86,286            641      0.7 %            -             -              -       -

Product sold            $    2,199,309   $ 2,228,676   $    (29,367 )   (1.3 )%   2,820,050     2,732,381         87,669     3.2 %





                                       30

--------------------------------------------------------------------------------

Table of Contents

Tons of product sold in 2016 was 2,820,050 tons compared to 2,732,381 tons in 2015, an increase of 87,669 tons, or 3.2 percent, as follows:

º •

        º Containerboard / Corrugated products sales increased by 82,015 tons to
          1,796,491 tons, primarily due to an increase in containerboard
          shipments of 72,039 tons and an increase in corrugated products sales
          of 9,976 tons.

        º •

º Specialty paper sales volume increased by 5,654 tons to 1,023,559

          tons, primarily due to an increase in kraft paper shipments of 38,313
          tons, pulp shipments of 14,318 tons and Kraftpak® shipments of 6,749
          tons, partially offset by lower DuraSorb® shipments of 53,726 tons.
    Cost of sales, excluding depreciation and amortization expense, for the year
ended December 31, 2016 was $2,214.9 million compared to $1,982.7 million for
the year ended December 31, 2015, an increase of $232.2 million, or
11.7 percent. The increase in cost of sales was mainly due to the $264.0 million
impact of the Victory acquisition. Excluding the Victory acquisition, cost of
sales decreased by $31.8 million, or 1.6 percent, due to $15.1 million of the
2015 Longview mill work stoppage costs not incurred in 2016, $9.2 million of
deflation on material costs, $5.4 million due to the suspension of certain
employee benefits, $1.6 million of lower management incentives due to lower
earnings, and $4.8 million of lower planned maintenance outage costs. These cost
decreases were partially offset by $6.4 million of costs due to Hurricane
Matthew. Planned maintenance outage costs during 2016 and 2015 totaled
$32.6 million and $37.4 million, respectively, and were included in cost of
sales for those years.

    Depreciation and amortization expense for the year ended December 31, 2016
totaled $182.2 million compared to $162.2 million for 2015. The increase of
$20.0 million was primarily due to $10.1 million from higher capital spending
and $9.9 million from the Victory acquisition, including $8.2 million of
amortization expense for acquired intangible assets.

Freight and distribution expenses for the year ended December 31, 2016 totaled $279.0 million compared to $234.5 million in 2015. The increase of $44.5 million was primarily due to $40.6 million attributable to the Victory acquisition and higher sales volume.


    Selling, general and administrative expenses for the year ended December 31,
2016 totaled $224.1 million compared to $210.8 million in 2015. The increase of
$13.3 million, or 6.3 percent, was primarily due to Victory's direct selling and
administrative expenses of $44.0 million. Excluding the impact of the Victory
acquisition, selling, general and administrative expenses decreased by
$30.7 million, or 14.6 percent. The decrease in selling, general and
administrative expenses was primarily due to $9.8 million of lower management
incentives due to lower earnings, $8.7 million of savings due to the suspension
of certain employee benefits, $2.9 million of Victory acquisition related
expenses not incurred in 2016, $2.1 million of lower expense due to the change
in fair value of the contingent consideration liability related to the Victory
acquisition, $2.6 million of lower integration expenses and $0.9 million of
lower stock compensation expense. These decreases in expense were partially
offset by $1.1 million of CFB acquisition related expenses. As a percentage of
net sales, selling, general and administrative expenses decreased to 7.3 percent
from 7.6 percent in 2015.

    In October 2016, the Company provided formal notification to withdraw from
its GCIU multiemployer pension plan. Accordingly, the Company recorded an
estimated withdrawal liability of approximately $6.4 million during the year
ended December 31, 2016.

Loss on debt extinguishment for the years ended December 31, 2016 and 2015 totaled $0.7 million and $1.2 million, respectively. The decrease is due to lower repayments on the term loans under the Credit Facility in 2016.

Net interest expense for the years ended December 31, 2016 and 2015 was $40.1 million and $33.8 million, respectively. Interest expense reflects interest on the outstanding borrowings under the

                                       31

--------------------------------------------------------------------------------

Table of Contents


Credit Facility and the receivables credit facility in connection with our trade
receivables securitization program (the "Receivables Credit Facility") and
amortization of debt issuance costs. Interest expense was $6.3 million higher
for the year ended 2016, primarily due to higher term loan balances associated
with the Victory acquisition and higher interest rates. The weighted-average
cost of borrowing was 2.40 percent as of December 31, 2016 compared to
2.05 percent as of December 31, 2015.

    Provision for income taxes for the years ended December 31, 2016 and 2015
was $41.9 million and $55.2 million, respectively, reflecting an effective
income tax rate of 32.7 percent for 2016, compared to 34.2 percent for 2015. The
lower provision for income taxes in 2016 primarily reflects lower pre-tax income
of $33.5 million.

    The following table compares results of operations for the years ended
December 31, 2015 and 2014:


                                Years Ended December 31,      Increase/      % of Net Sales
                                   2015           2014       (Decrease)     2015       2014
Paper and packaging           $    2,228,676   $ 2,300,920   $   (72,244 )    79.9 %    100.0 %
Distribution                         582,949             -       582,949      20.9 %      0.0 %
Intersegment Eliminations            (22,280 )           -       (22,280 )    (0.8 )%     0.0 %

Net sales                     $    2,789,345   $ 2,300,920   $   488,425     100.0 %    100.0 %

Cost of sales, excluding
depreciation and
amortization                       1,982,686     1,551,531       431,155      71.1 %     67.4 %
Depreciation and
amortization                         162,179       136,548        25,631       5.8 %      5.9 %
Freight and distribution
expenses                             234,469       175,901        58,568       8.4 %      7.6 %
Selling, general, and
administrative expenses              210,844       137,009        73,835       7.6 %      6.0 %

Operating income              $      199,167   $   299,931   $  (100,764 )     7.1 %     13.0 %

Foreign exchange loss                  2,556         1,222         1,334       0.1 %      0.1 %
Loss on debt extinguishment            1,218         5,617        (4,399 )     0.0 %      0.2 %
Interest expense, net                 33,759        32,491         1,268       1.2 %      1.4 %

Income before provision for
income taxes                         161,634       260,601       (98,967 )     5.8 %     11.3 %
Provision for income taxes            55,248        88,686       (33,438 )     2.0 %      3.9 %

Net income                    $      106,386   $   171,915   $   (65,529 )     3.8 %      7.5 %





    Consolidated net sales for the year ended December 31, 2015 were
$2,789.3 million compared to $2,300.9 million for the year ended December 31,
2014, an increase of $488.4 million, or 21.2 percent. The increase in net sales
was primarily driven by the Victory acquisition on June 1, 2015, which accounted
for $582.9 million of net sales.

    Paper and Packaging segment net sales of $2,228.7 million decreased by
$72.4 million from the prior year due to $47.4 million of lower volume,
primarily due to the Longview mill work stoppage in the third quarter and
internalizing more of the Company's corrugated products manufacturing plants
demand, $26.9 million of lower prices and a less favorable product mix,
$10.8 million due to a stronger U.S. dollar compared to the Euro and
$9.4 million due to lower other sales. Average mill selling price per ton for
2015 was $667 compared to $684 for 2014, reflecting a stronger U.S. dollar
compared to the Euro, lower containerboard domestic and export prices and a less
favorable product mix, partially offset by higher domestic kraft paper prices.

                                       32

--------------------------------------------------------------------------------

Table of Contents


    Paper and Packaging segment sales to customers by product line were as
follows:

                                                                Years Ended December 31,

                          Net Sales (in thousands)      Increase/                       Tons Sold            Increase/
Product Line Revenue:        2015           2014        (Decrease)      %          2015          2014        (Decrease)      %
Containerboard /
Corrugated products     $    1,421,802   $ 1,463,670   $    (41,868 )   (2.9 )%   1,714,476     1,764,628        (50,152 )   (2.8 )%
Specialty paper                720,588       741,601        (21,013 )   (2.8 )%   1,017,905     1,031,024        (13,119 )   (1.3 )%
Other                           86,286        95,649         (9,363 )   (9.8 )%           -             -              -        -

Product sold            $    2,228,676   $ 2,300,920   $    (72,244 )   (3.1 )%   2,732,381     2,795,652        (63,271 )   (2.3 )%




Tons of product sold in 2015 was 2,732,381 tons compared to 2,795,652 tons in 2014, a decrease of 63,271 tons, or 2.3 percent as follows:

        º •
        º Containerboard sales decreased by 65,201 tons, primarily due to the
          Longview mill work stoppage in the third quarter and volumes being
          redirected from outside sales to fulfill demand for internal

converting. Corrugated product sales volume increased by approximately

          15,049 tons.

        º •
        º Specialty paper sales volume decreased by 13,119 tons primarily due to

lower kraft paper export shipments of 37,680 tons reflecting increased

competition in our export markets, partially offset by higher domestic

kraft paper shipments of 19,389 tons.

º •

º Other sales declined primary due to lower energy and lumber prices.

Distribution segment net sales of $582.9 million reflect sales for Victory, which the Company acquired on June 1, 2015.

    Cost of sales, excluding depreciation and amortization expense, for the year
ended December 31, 2015 was $1,982.7 million compared to $1,551.5 million for
the year ended December 31, 2014, an increase of $431.2 million, or
27.8 percent. The increase in cost of sales was mainly due to the $430.1 million
impact of the Victory acquisition, including $5.8 million of expense related to
the step up of inventory in purchase accounting. Excluding the acquisition, cost
of sales was flat reflecting higher costs due to $20.4 million of inflation and
$15.1 million caused by the Longview mill work stoppage. This increase in cost
of sales was offset by $29.3 million of lower sales volume, $4.2 million of
productivity gains and lower incentive compensation and $2.0 million of lower
severance costs. Planned maintenance outage costs during 2015 and 2014 totaled
$37.4 million and $36.1 million, respectively, and were included in cost of
sales for those years.

    Depreciation and amortization expense for the year ended December 31, 2015
totaled $162.2 million compared to $136.5 million for 2014. The increase of
$25.7 million reflects $13.1 million from the Victory acquisition, including
$11.1 million of amortization expense for acquired intangible assets. In
addition, depreciation expense was higher due to $6.1 million from higher
capital spending and $6.5 million of accelerated depreciation mainly for two
boilers taken out of service due to modernizing the Longview paper mill.

    Freight and distribution expenses for the year ended December 31, 2015
totaled $234.5 million compared to $175.9 million in 2014. The increase of
$58.6 million was primarily due to $55.0 million from the Victory acquisition
and $4.6 million due to product and customer mix, which was partially offset by
$3.9 million of lower fuel costs.

    Selling, general and administrative expenses for the year ended December 31,
2015 totaled $210.8 million compared to $137.0 million in 2014. The increase of
$73.8 million, or 53.9 percent, includes $64.1 million for Victory direct
selling and administrative expenses. Excluding Victory, selling, general and
administrative expenses increased by $9.7 million due to $2.9 million of Victory
acquisition

                                       33

--------------------------------------------------------------------------------

Table of Contents


expenses and $3.7 million of contingent consideration expense, $3.4 million of
higher salary and benefit related expenses, $2.9 million of higher stock-based
compensation expense and $2.2 million of higher legal and consulting expenses.
This increase in selling, general and administrative expense was partially
offset by $2.7 million of lower Longview integration expenses and $2.4 million
of lower incentive compensation due to the Company's lower operating income in
2015. As a percentage of net sales, selling, general and administrative expenses
increased to 7.6 percent in 2015 from 6.0 percent in 2014.

    Loss on debt extinguishment for the years ended December 31, 2015 and 2014
totaled $1.2 million and $5.6 million, respectively, due to $103.5 million of
prepayments on the term loans under the Credit Facility in 2015 and
$325.0 million of prepayments in 2014.

    Net interest expense for the years ended December 31, 2015 and 2014 was
$33.8 million and $32.5 million, respectively. Interest expense reflects
interest on the outstanding borrowings under the Credit Facility and the
Receivables Credit Facility and amortization of debt issuance costs. Interest
expense was $1.3 million higher for the year ended 2015, primarily due to higher
borrowings under the term loans to finance the Victory acquisition.

    Provision for income taxes for the years ended December 31, 2015 and 2014
was $55.2 million and $88.7 million, respectively, reflecting an effective
income tax rate of 34.2 percent for 2015, compared to 34.0 percent for 2014. The
lower provision for income taxes in 2015 primarily reflects lower pre-tax income
of $99.0 million.

Liquidity and Capital Resources

Credit Facility


    The Company had $483.4 million available to borrow under the $500 million
revolving credit facility ("Revolver") portion of our Credit Facility at
December 31, 2016. In addition, the Credit Facility also includes an uncommitted
accordion feature that allows the Company, subject to certain significant
conditions, to request additional commitments from our existing or new lenders
under the Credit Facility without further approvals of any existing lenders
thereunder. The aggregate amount of such increases in potential commitments (and
potential borrowings) is limited to $600 million, unless the Company would
maintain a pro forma total leverage ratio of 2.5 to 1.0 or less after giving
effect to the increase in potential commitments (and potential borrowings). For
a description of our Credit Facility, see Note 9 "Long-term Debt-Second Amended
and Restated Credit Agreement".

Receivables Credit Facility


    On June 8, 2016, the Company entered into Amendment No. 2 to the Receivables
Purchase Agreement (the "Amendment to Receivables Purchase Agreement") amending
its Receivables Purchase Agreement dated as of September 26, 2014 (as previously
amended, the "Receivables Purchase Agreement"). In addition, the Company,
KapStone Receivables, LLC ("KAR"), KapStone Kraft Paper Corporation, KapStone
Container Corporation, KapStone Charleston Kraft LLC, Longview Fibre Paper and
Packaging, Inc. and Victory (collectively, the "Originators"), entered into
Amendment No. 2 to the Receivables Sales Agreement (the "Amendment to
Receivables Sales Agreement" and together with the Amendment to Receivables
Purchase Agreement, the "Amendment"). The Amendment establishes the primary
terms and conditions of an accounts receivable securitization program (the
"Securitization Program"). The Amendment extended the "Facility Termination
Date" (as defined in the Receivable Purchase Agreement) from June 8, 2016 to
June 6, 2017. For a description of our Securitization Program, see Note 9
"Long-term Debt-Receivables Credit Facility".

As of December 31, 2016, the Company had $269.3 million of outstanding borrowings under its $275.0 million Receivables Credit Facility with an interest rate of 1.5 percent.


                                       34

--------------------------------------------------------------------------------

Table of Contents

Voluntary and Mandatory Prepayments

For the years ended December 31, 2016 and 2015, the Company made $64.7 million and $103.5 million, respectively, of voluntary prepayments on its term loans under its Credit Facility using cash generated from operations.

For the years ended December 31, 2016 and 2015, the Company made $39.3 million and $36.1 million, respectively, of mandatory payments throughout the year on the Receivable Credit Facility.

Other Borrowing

In 2015, the Company entered into a $6.6 million financing agreement at an annual interest rate of approximately 1.70 percent for its annual property insurance premiums. The Company repaid this obligation as of December 31, 2015.

In 2016, the Company paid its annual property insurance premiums with cash on hand.


Debt Covenants

    The Company must comply on a quarterly basis with the financial covenants of
its Credit Agreement, including a maximum permitted leverage ratio. The leverage
ratio is calculated by dividing the Company's debt net of available cash by its
rolling twelve month total earnings before interest expense, taxes, depreciation
and amortization and allowable adjustments. The maximum permitted leverage ratio
declines over the life of the Credit Agreement. On December 31, 2016, the
maximum permitted leverage ratio was 4.50 to 1.00. On December 31, 2016, the
Company was in compliance with a leverage ratio of 3.82 to 1.00.

    The Credit Agreement also includes a financial covenant requiring a minimum
interest coverage ratio. This ratio is calculated by dividing the Company's
trailing twelve month total earnings before interest expense, taxes,
depreciation and amortization and allowable adjustments by the sum of our net
cash interest payments during the twelve month period. On December 31, 2016, the
interest coverage ratio was required to be at least 3.00 to 1.00. On
December 31, 2016, the Company was in compliance with the Credit Agreement with
an interest coverage ratio of 11.08 to 1.00.

As of December 31, 2016, the Company was also in compliance with all other covenants in the Credit Agreement.

Income Taxes


    Income taxes paid, net of refunds, were $23.8 million, $65.5 million and
$77.5 million in 2016, 2015 and 2014, respectively. The decrease in 2016 was
primarily due the Company's election to defer estimated tax payments until
January 2017 of approximately $20.0 million, receipt of a $12.0 million tax
refund and a decrease in pre-tax income. The Company expects its 2017 cash tax
rate to be approximately 39 percent on 2017 earnings.

Sources and Uses of Cash

Years ended December 31 ($ in thousands) 2016 2015

 2014
    Operating activities                        $  281,920   $  262,457   $  313,198
    Investing activities                          (151,754 )   (743,802 )   (137,232 )
    Financing activities                          (107,602 )    459,699     (160,466 )
    Total change in cash and cash equivalents   $   22,564   $  (21,646 ) $   15,500





                                       35

--------------------------------------------------------------------------------

Table of Contents

2016


    Cash and cash equivalents increased by $22.6 million from December 31, 2015,
reflecting $281.9 million of net cash provided by operating activities,
$151.8 million of net cash used in investing activities and $107.6 million of
net cash used in financing activities.

    Net cash provided by operating activities was $281.9 million, comprised
primarily of net income of $86.3 million, non-cash charges of $189.7 million and
improved working capital of $5.9 million. Net cash provided by operating
activities increased by $19.5 million during the year ended December 31, 2016,
compared to 2015, mainly due to a $37.3 million decrease in cash used for
working capital and $2.3 million of higher non-cash charges, partially offset by
$20.1 million of lower net income. The decrease in cash used for working capital
mainly reflects lower raw material inventories and prepaid expenses offset by
higher trade accounts receivable.

    Net cash used in investing activities includes $126.9 million for capital
expenditures, $15.4 million for the CFB acquisition and $11.8 million of equity
method investments, partially offset by $4.9 million of proceeds from asset
sales. Net cash used by investing activities decreased by $592.0 million for the
year ended December 31, 2016, compared to 2015, primarily due to the Victory
acquisition in 2015.

    Net cash used in financing activities was $107.6 million and reflects a
$64.7 million prepayment of the term loans under the Credit Facility,
$38.7 million of quarterly cash dividend payments, $6.4 million of net
short-term borrowings under the Revolver and $2.3 million of loan amendment
fees, partially offset by $3.7 million of net borrowings under the Receivables
Credit Facility. Net cash provided by financing activities decreased by
$567.3 million for the year ended December 31, 2016, compared to 2015, primarily
due to higher net borrowings in 2015 to fund the Victory acquisition.

2015


    Cash and cash equivalents decreased by $21.6 million from December 31, 2014,
reflecting $262.5 million of net cash provided by operating activities,
$743.8 million of net cash used in investing activities and $459.7 million of
net cash provided by financing activities.

    Net cash provided by operating activities was $262.5 million, comprised of
net income of $106.4 million and non-cash charges of $187.4 million. Changes in
operating assets and liabilities used $31.3 million of cash. Net cash provided
by operating activities decreased by $50.7 million during the year ended
December 31, 2015 compared to 2014, mainly due to a $65.5 million decrease in
net income and a $25.3 million increase in cash used for working capital,
partially offset by higher non-cash charges of $40.1 million. The increase in
working capital mainly reflects higher inventory levels and income taxes.

    Net cash used in investing activities includes $617.0 million for the
Victory acquisition and $126.8 million for capital expenditures. Net cash used
in investing activities increased by $606.6 million for the year ended
December 31, 2015 compared to 2014, primarily due to the Victory acquisition,
partially offset by $10.5 million of lower capital spending.

    Net cash provided by financing activities was $459.7 million, reflecting
$519.8 million of additional borrowings under the Credit Facility, $98.6 million
of net borrowings under the Receivables Credit Facility and $6.4 million of net
short-term borrowings under the Revolver. These borrowings were partially offset
by $103.5 million of prepayments on the term loans under the Credit Facility,
$38.7 million of dividend payments, $12.9 million principal payments on the term
loans under the Credit Facility and $10.8 million of debt issuance costs for the
Credit Agreement. Net cash provided by financing activities increased by
$620.2 million in 2015 compared to 2014, primarily due to net borrowings to
finance the Victory acquisition of $519.8 million and lower voluntary
prepayments of $212.1 million, which was partially offset by the lower net
borrowings under the Receivables Credit Facility of $68.4 million and cash
dividend payments of $38.7 million.

                                       36

--------------------------------------------------------------------------------

Table of Contents

Future Cash Needs


    We expect that cash on hand at December 31, 2016 and cash generated from
operating activities in 2017 will be sufficient to meet anticipated cash needs,
which primarily consists of approximately $140.0 million of expected capital
expenditures, $39.0 million of dividends and any additional working capital
needs.

    Should the need arise, we have the ability to draw from our $500.0 million
Revolver. In addition, if available and subject to specified significant
conditions, we may have the ability to request additional commitments from our
existing or new lenders and borrow up to $600.0 million under the accordion
provision of our Credit Facility without further approvals of any existing
lenders thereunder. As of December 31, 2016, the Company had no borrowings under
the Revolver and $483.4 million of remaining Revolver availability, net of
outstanding letters of credit.

    On a long term basis, we expect that cash generated from operating
activities and, if needed, the ability to draw from our Revolver and accordion
provision, if available, will be sufficient to meet long term obligations. Our
long term obligations primarily consist of $1.7 billion of debt service and
interest (which includes a $716.8 million final payment on our term loan A-1 and
$269.3 million on our Receivable Credit Facility in June 2020 and a final
payment on our term loan A-2 in June 2022 of $442.9 million), capital
expenditures of approximately $125.0 million to $135.0 million annually,
dividends and working capital needs.

Off-Balance Sheet Arrangements


    We have not entered into any off-balance sheet financing arrangements. The
Company established a special purpose entity in connection with the Receivables
Credit Facility, which is consolidated as part of our financial statements. We
have not guaranteed any debt or commitments of other entities or entered into
any options on non-financial assets.

Critical Accounting Policies


    The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of expenses during the reporting period. Actual results could differ
from those estimates. We believe our critical accounting policies are those
described below. The Company's audit committee has reviewed the policies listed
below. For a detailed discussion of these and other accounting policies, see
Note 2 "Significant Accounting Policies" of the Notes to the Consolidated
Financial Statements.

Revenue Recognition


    The Company recognizes revenue in accordance with Accounting Standards
Codification ("ASC") 605, Revenue Recognition. Revenue is recognized when the
customer takes title and assumes the risks and rewards of ownership, when the
price is fixed and determinable and when collectability is reasonably assured.
Sales with terms designated f.o.b. (free on board) shipping point are recognized
at the time of shipment. For sales transactions with terms f.o.b. destination,
revenue is recorded when the product is delivered to the customer's site and
when title and risk of loss are transferred. Sales on consignment are recognized
in revenue at the earlier of the month that the goods are consumed or after a
period of time subsequent to receipt by the customer as specified by contract
terms. Incentive rebates are typically paid in cash and are netted against
revenue on an accrual basis as qualifying purchases are made by the customer to
earn and thereby retain the rebate.

    The Company recognizes revenue from the sale of shaft horsepower, generated
by its cogeneration facility, and energy sales on a gross basis and is included
in net sales.

                                       37

--------------------------------------------------------------------------------

Table of Contents

Freight charged to customers is recognized in net sales.

Goodwill and Intangibles


    Certain business acquisitions have resulted in the recording of goodwill.
Upon acquisition, the purchase price is first allocated to identifiable assets
and liabilities based on estimated fair value, with any remaining purchase price
recorded as goodwill. Goodwill is considered an indefinite lived intangible
asset and as such is not amortized. At December 31, 2016, we have goodwill of
$705.6 million. In conjunction with the CFB acquisition the Company's goodwill
increased by $1.0 million, see Note 3 "Acquisitions and Equity Method
Investments" of the Notes to Consolidated Financial Statements.

Goodwill Valuations

    Goodwill represents the excess of the cost of an acquired business over the
fair value of the identifiable tangible and intangible assets acquired and
liabilities assumed in a business combination. At December 31, 2016, we had
$705.6 million of goodwill, of which we recorded $170.7 million in connection
with the Victory acquisition in 2015 and $1.0 million in connection with the CFB
acquisition in 2016. At December 31, 2016, we had $534.9 million and
$170.7 million of goodwill allocated to our Paper and Packaging and Distribution
segments, respectively.

    We test for impairment annually in the fourth quarter, or sooner, if events
or changes in circumstances indicate that the carrying value of the asset may
exceed fair value. The test is performed at the reporting unit level. A
reporting unit is an operating segment or one level below an operating segment
(referred to as a "component"). A component is considered a reporting unit for
purposes of goodwill testing if the component constitutes a business for which
discrete financial information is available and segment management regularly
reviews the operating results of that component. We maintain three reporting
units for purposes of our goodwill testing, Western Paper and Packaging
Operations, Eastern Paper and Packaging Operations and Distribution. Regional
paper and packaging reporting units make up our Paper and Packaging segment and
the Distribution reporting unit is the same as the Distribution segment. Segment
information is discussed further in Note 16 "Segment Information" of the Notes
to Consolidated Financial Statements.

    In 2016, the Company performed a quantitative assessment. In conducting our
quantitative goodwill impairment analysis, we use a two-step process. First, we
compare the book value of a reporting unit, including goodwill, with its fair
value. The fair value is estimated based on a combined market approach and a
discounted cash flow analysis, also known as the income approach, and is
reconciled back to the current market capitalization for the Company to ensure
that the implied control premium is reasonable. If the book value of a reporting
unit exceeds its fair value, we perform the second step to estimate an implied
fair value of the reporting unit's goodwill by allocating the fair value for the
reporting unit to all of the assets and liabilities other than goodwill
(including any unrecognized intangible assets). The difference between the total
fair value of the reporting unit and the fair value of all the assets and
liabilities other than goodwill is the implied fair value of that goodwill. The
amount of impairment loss is equal to the excess of the book value of the
goodwill over the implied fair value of that goodwill. The initial step of our
impairment test indicated no impairment for any of the years presented.

The following assumptions are used in calculating the fair value of reporting units:

º •

º Company Business Projections. The discounted cash flow model utilizes

business projections that are developed internally by management for

use in managing the business. These projections include assumptions

          for sales volume growth, price and mix changes, synergy benefits from
          acquisitions, inflation on costs and expenses, income taxes, and
          capital expenditures. Our forecasts take into consideration recent
          sales data for existing products, planned integration of recent
          strategic investments, planned timing of capital projects, and
          economic indicators to

                                       38

--------------------------------------------------------------------------------

Table of Contents

          estimate future production volumes, selling prices, and key input
          costs for our manufactured products. Our pricing assumptions include
          an assessment of industry supply and demand dynamics for our major
          products.

º •

        º Growth Rates. A growth rate is used to calculate the terminal value in
          the discounted cash flow model. The growth rate is the expected rate
          at which earnings or revenue is projected to grow beyond the forecast
          period. Growth rate assumptions were 3.0 percent to 4.5 percent in our
          discounted cash flow analysis.

        º •
        º Discount Rates. Future cash flows are discounted at a rate that is

consistent with a weighted average cost of capital for a potential

market participant. The weighted average cost of capital is an

estimate of the overall after-tax rate of return required by equity

and debt holders of a business enterprise. The discount rates selected

are based on existing conditions within our industry and reflect

adjustments for potential risk premiums in those markets as well as

weighting of the market cost of equity versus debt. We used discount

          rates ranging from 8.5 percent to 10.5 percent in determining the
          discounted cash flows for each of our reporting units.

        º •

º EBITDA Multiples. The market approach requires the use of a valuation

multiple to calculate the estimated fair value of a reporting unit. We

use an EBITDA multiple based on a selection of comparable companies

and recent acquisition transactions within our industries to

corroborate the value calculated in our discounted cash flow analysis.

As of October 1, 2016, we determined that the fair values of all our reporting units were in excess of the carrying amount, and therefore, no goodwill impairment existed. As a result, the second step of the goodwill impairment test was not required to be completed.


    The estimates and assumptions we use are consistent with the business plans
and estimates we use to manage operations and to make acquisition and
divestiture decisions. The use of different assumptions could impact whether an
impairment charge is required and, if so, the amount of such impairment. Future
outcomes may also differ. If we fail to achieve estimated volume and pricing
targets, experience unfavorable market conditions or achieve results that differ
from our estimates, then revenue and cost forecasts may not be achieved, and we
may be required to recognize impairment charges, which could have a significant
noncash impact on our operating results and financial condition. We cannot
predict the occurrence of future events that might adversely affect the reported
value of our goodwill and intangible assets. As additional information becomes
known, we may change our estimates.

    Intangible assets acquired in a business combination or asset purchase are
initially valued at the fair market value using generally accepted valuation
methods appropriate for the type of the intangible asset. Definite-lived
intangible assets are amortized over their estimated useful lives and are
reviewed for impairment if indicators of impairment arise. The evaluation of the
impairment is based upon a comparison of the carrying amount of the intangible
asset to the estimated future undiscounted cash flows expected to be generated
by the asset. If the estimated undiscounted future cash flows are less than the
carrying amount of the assets, the asset is considered to be impaired. If
impaired, the intangible asset is written down to estimated fair market value.

Pension and Postretirement Benefits


    The Company provides pension and postretirement benefits to certain
employees and accounts for these benefits in accordance with ASC 715,
Compensation-Retirement Benefits. For financial reporting purposes, long-term
assumptions are developed through consultations with actuaries. Such assumptions
include the expected long-term rate of return on plan assets, discount rates,
health care trend rates and mortality rates. The discount rate for the current
year is based on long-term high

                                       39

--------------------------------------------------------------------------------

Table of Contents


quality bond rates. We describe these assumptions in Note 10, Pension and
Postretirement Benefits, of the Notes to Consolidated Financial Statements,
which include, among others, the discount rate, expected long-term rate of
return on plan assets and expected rates of increase in compensation levels.
Although there is authoritative guidance on how to select most of these
assumptions, management must exercise judgment when selecting these assumptions.
We evaluate these assumptions with our actuarial advisors on an annual basis and
we believe they are within accepted industry ranges, although an increase or
decrease in the assumptions or economic events outside our control could have a
direct impact on recorded obligations and reported net earnings. A summary of
key assumptions for 2016, 2015 and 2014 is as follows:

                                                                  Pension Benefits
                                                               Actuarial Assumptions
                                                              2016       2015      2014
Weighted-average discount rate assumption used to
determine PBO at December 31,                                   4.50 %     

4.66 % 4.24 % Weighted-average actuarial assumptions for net expense: Discount rate

                                                   4.66 %     4.24 %   5.11 %
Long-term rate of return on plan assets                         6.50 %     

6.50 % 6.98 %



    The measurement date for our plan is year-end as of December 31.
Accordingly, at the end of each year, we determine the discount rate to be used
to discount pension liabilities to its present value. This rate is adjusted to
match the duration of the liabilities associated with the pension plan. The
discount rate reflects the current rate at which the pension liabilities could
be effectively settled at the end of the year. The Company's estimate of its
projected benefit obligation ("PBO") is highly dependent on changes in market
interest rates. In estimating this rate at the end of 2016, we reviewed rates of
return on relevant market indices and concluded that the Fidelity Bond Modeler
is consistent with observable market conditions and industry standards for
developing spot rate curves. The impact of the change in market interest rates
during 2016 resulted in an $11.2 million increase to our December 31, 2016 PBO.
This was partially offset by favorable changes in plan demographics resulting in
a PBO decrease of $0.7 million and interest crediting rate assumption changes
resulting in a PBO decrease of $2.2 million. These changes were recorded through
"Accumulated other comprehensive income / (loss)," a component of "Stockholders'
Equity" in the Consolidated Balance Sheets.

    A significant element in determining our net periodic benefit income is the
expected return on plan assets. For 2016, our expected long-term rate of return
on plan assets was 6.50 percent, or $37.3 million. This expected return on plan
assets is included in the net periodic benefit income for the year ended
December 31, 2016.

Actual return on plan assets was $34.7 million in 2016, a decrease of $2.6 million compared to the expected return. The difference between the expected return and the actual return on plan assets is reflected on the Consolidated Balance Sheets through charges to "Accumulated other comprehensive income / (loss)." As of December 31, 2016 and 2015, the fair value of plan assets is $574.4 million and $593.1 million, respectively.


    In addition to the discount rate change, we adopted updated U.S. mortality
tables in 2016 for purposes of determining our mortality assumption used in the
defined benefit plan's liability calculation. The new assumptions were based on
the Society of Actuaries recent mortality experience study and reflect future
mortality improvement. Based on our experience and in consultation with our
actuaries, we utilized a base RP-2014 with MP-2016 projection scale and
appropriate collar adjustments. In 2015, we utilized the RP-2015 mortality
tables with MP-2014 projection scale. The updated mortality assumption resulted
in a decrease to the PBO of $8.8 million as of the end of 2016 and was recorded
through "Accumulated other comprehensive income / loss."

                                       40

--------------------------------------------------------------------------------

Table of Contents


    In 2016, management approved a plan to offer lump sum payments and insurance
annuities to approximately 1,400 terminated vested plan participants. This
reduced the risk of the Company's pension plan to its financial statements.
Approximately 427 participants have accepted this plan, with a corresponding
distribution of approximately $14.3 million in December 2016 recorded as part of
"Benefits Paid". No settlement loss was recorded as the distribution is below
the applicable threshold of the sum of service cost and interest cost recognized
as components of net periodic pension cost for the year. This also resulted in a
decrease to the PBO of $2.1 million as of the end of 2016 and was recorded
through "Accumulated other comprehensive income / loss".

    The decrease in the discount rate, the change to the updated mortality and
other assumptions, risk reduction plan and overall plan experience has decreased
the PBO by $23.7 million to $602.4 million as of December 31, 2016 from
$626.1 million as of December 31, 2015. As of December 31, 2016 and 2015, the
plan's unfunded status was $28.1 million and $32.9 million, respectively.

    We recognized net periodic pension income of $0.1 million in 2016, compared
to $6.5 million in 2015. For the year ended December 31, 2017, we estimate net
periodic pension income to approximate $0.7 million, reflecting a discount rate
of 4.50 percent, an expected return on plan assets of 6.5 percent and
amortization of actuarial losses of $4.8 million.

    On October 31, 2016, the Company provided formal notification to withdraw
from its GCIU multiemployer pension plan. Accordingly, the Company recorded an
estimated withdrawal liability of approximately $6.4 million, based on annual
payments of approximately $0.4 million over 20 years, discounted at a credit
adjusted risk-free rate return of approximately 3.6 percent. This liability is
based on an analysis of the facts available to management; however, the
withdrawal liability will ultimately be determined by the plan trustee.

Income Taxes


    The Company accounts for income taxes under the liability method in
accordance with ASC 740, Income Taxes. Accordingly, deferred income taxes are
provided for the future tax consequences attributable to differences between the
carrying amounts of assets and liabilities for financial reporting and income
tax purposes. Deferred tax assets and liabilities are measured using tax rates
in effect for the year in which those temporary differences are expected to be
recovered or settled. A valuation allowance is established when necessary to
reduce deferred tax assets to the amount that is more likely than not to be
realized. The Company recognizes the benefit of tax positions when it is more
likely than not to be sustained on its technical merits. The Company records
interest and penalties on unrecognized tax benefits in the provision for income
taxes. As of December 31, 2016, the Company does not have any valuation
allowances.

Recent Accounting Pronouncements

See Note 2 "Significant Accounting Policies" in the Notes to Consolidated Financial Statements for a discussion of recent accounting pronouncements.

                                       41

--------------------------------------------------------------------------------

Table of Contents

Contractual Obligations


    The following table summarizes our contractual obligations as of
December 31, 2016 ($000's):

                                                          Payments Due by Period
Contractual Obligations      Total        2017        2018        2019         2020         2021      Thereafter
Long-term debt(1)         $ 1,233,875   $       -   $       -   $  51,750   $   733,250   $  4,750   $    444,125
Receivable credit
facility(1)                   269,273           -           -           -       269,273          -              -
Interest on long-term
debt(2)                       185,375      43,701      47,076      46,546        27,529     14,621          5,902
Operating lease
obligations(3)                281,397      45,750      40,711      35,087        30,768     24,075        105,006
Purchase
obligations(4)(5)             393,613      35,259      34,352      32,025        31,308     30,591        230,078
Victory contingent
consideration(6)               25,000           -      25,000           -             -          -              -
Multiemployer pension
plan(7)                         8,880         444         444         444           444        444          6,660

Total                     $ 2,397,413   $ 125,154   $ 147,583   $ 165,852   $ 1,092,572   $ 74,481   $    791,771




--------------------------------------------------------------------------------

º (1)

º These obligations are reflected on our Consolidated Balance Sheets at

     December 31, 2016, in long-term debt net of current portion, as
     appropriate. See Note 9 "Short-term Borrowings and Long-term Debt" in the
     Notes to Consolidated Financial Statements.

º (2)

º Assumes debt is carried to full term. Debt bears interest at variable rates

and the amounts above assume future interest will be incurred at the rates

in effect on December 31, 2016. These obligations are not reflected on our

Consolidated Balance Sheets at December 31, 2016.

º (3)

º These obligations are not reflected on our Consolidated Balance Sheets at

December 31, 2016. See Note 14 "Commitments and Contingencies" in the Notes

to Consolidated Financial Statements.

º (4)

º Purchase obligations are agreements to purchase goods that are enforceable

and legally binding on us and that specify all significant terms, including

fixed or minimum quantities to be purchased. These obligations are not

reflected on our Consolidated Balance Sheets at December 31, 2016.

See Note 14 "Commitments and Contingencies" in the Notes to Consolidated

Financial Statements regarding the Company's purchase obligation relating

to the Long Term Fiber Supply Agreement and the purchase of a contracted

     volume of natural gas.

   º (5)
   º In September, 2015 the Company signed a non-cancellable contract with a

third party to produce wood chips for use at the Company's North Charleston

and Roanoke Rapids paper mills for twenty years, with an annual purchase

obligation of approximately $13.0 million.

º (6)

º Victory's contingent consideration of $25.0 million is the maximum amount

payable to former owners of Victory if certain financial performance

criteria are satisfied during the thirty month period following the

closing. The contingent consideration, as of December 31, 2016 is recorded

     at a fair value of $14.9 million. See Note 14 "Commitment and
     Contingencies" in the Notes to Consolidated Financial Statements.

   º (7)

º On October 31, 2016, the Company provided formal notification to withdraw

from its GCIU multiemployer pension plan. Accordingly, the Company recorded

an estimated withdrawal liability of approximately $6.4 million. The

withdrawal liability is calculated based on annual payments of

approximately $0.4 million over 20 years, discounted at a credit adjusted

risk-free rate return of approximately 3.6 percent. This liability is based

on an analysis of the facts available to management; however, the

withdrawal liability will ultimately be determined by the plan trustee.

At this time, the Company does not expect to have any required contributions to its defined benefit plan in 2017. The timing and amount of future contributions, which could be material, will

                                       42

--------------------------------------------------------------------------------

Table of Contents

depend on a number of factors, including the actual earnings and changes in values of plan assets, changes in interest rates and changes in mortality tables.

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KAPSTONE PAPER AND PACKAGI
02/24 KAPSTONE PAPER AND PACKAGING : & PACKAGING CORP Management's Discussion and Anal..
02/14 KAPSTONE PAPER AND PACKAGING CORPORA : KS) Files An 8-K Regulation FD Disclosure
02/13 KAPSTONE PAPER & PACKAGING CORP : Regulation FD Disclosure (form 8-K)
02/13 KAPSTONE PAPER AND PACKAGING : Longview, Cowlitz 2 crews battle fire at KapStone
02/09 KAPSTONE PAPER AND PACKAGING : misses 4Q profit forecasts
02/08 KAPSTONE PAPER & PACKAGING CORP : Results of Operations and Financial Condition,..
02/08 KAPSTONE PAPER AND PACKAGING : Reports Fourth Quarter And Full Year Results
02/06 KAPSTONE PAPER AND PACKAGING : Acquires Assets of Associated Packaging and Fast ..
02/02 KAPSTONE PAPER AND PACKAGING : Acquires Associated Packaging Incorporated (API)
02/01 KAPSTONE PAPER AND PACKAGING : Acquires Associated Packaging Incorporated (API)
More news
Sector news : Paper Packaging - NEC
02/06 MONDI : buys UK packaging firm Excelsior Technologies
01/23 SILGAN : buys WestRock's speciality closures business
2016 ConvaTec, Smurfit Kappa to join FTSE 100 after reshuffle
2016DJFrontier IP Group FY16 Pretax Profit Up 75%
2016 FTSE rises, though Royal Mail lags after results
More sector news : Paper Packaging - NEC
News from SeekingAlpha
02/21 EXPLOITING THE AMATEUR INVESTOR'S ED : Embracing Volatility Within One's Circle ..
02/13 Containerboard price increase on the radar
02/09 KapStone Paper and Packaging's (KS) CEO Matt Kaplan on Q4 2016 Results - Earn..
02/09 KapStone Paper and Packaging Corporation 2016 Q4 - Results - Earnings Call Sl..
02/08 KapStone misses by $0.01, beats on revenue
Advertisement
Financials ($)
Sales 2017 3 268 M
EBIT 2017 262 M
Net income 2017 148 M
Debt 2017 1 314 M
Yield 2017 1,80%
P/E ratio 2017 14,83
P/E ratio 2018 12,27
EV / Sales 2017 1,07x
EV / Sales 2018 1,01x
Capitalization 2 195 M
More Financials
Chart KAPSTONE PAPER AND PACKAGI
Duration : Period :
KapStone Paper and Packagi Technical Analysis Chart | KS | US48562P1030 | 4-Traders
Full-screen chart
Technical analysis trends KAPSTONE PAPER AN...
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 25,3 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Matthew S. Kaplan President, Chief Executive Officer & Director
Roger Warren Stone Executive Chairman
Andrea K. Tarbox Chief Financial Officer & Vice President
Jonathan R. Furer Independent Director
John M. Chapman Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
KAPSTONE PAPER AND PAC..3.76%2 195
INTERNATIONAL PAPER CO-1.58%21 638
WESTROCK CO5.06%13 385
MONDI PLC11.88%11 340
MONDI LIMITED6.51%11 340
PACKAGING CORP OF AMER..10.81%8 805
More Results