Stock Monitor: Clearwater Paper Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 03, 2018 / Active-Investors.com has just released a free earnings report on KapStone Paper and Packaging Corp. (NYSE: KS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KS. KapStone Paper and Packaging reported its first quarter fiscal 2018 operating and financial results on April 18, 2018. The maker of paper container and packaging products outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Clearwater Paper Corporation (NYSE: CLW), which also belongs to the Consumer Goods sector as the Company KapStone Paper and Packaging. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, KapStone Paper and Packaging most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=KS

Earnings Highlights and Summary

KapStone's consolidated net sales was $799 million in the first quarter of 2018, increasing by 4% compared to $766 million for Q1 2017. The increase in net sales was primarily due to higher prices, partially offset by lower sales volume. The Company's reported numbers topped analysts' estimates by $6.9 million.

During Q1 FY18, KapStone sold 662,000 tons of paper compared to 699,000 tons in Q1 FY17. The Company's volume was lower in the reported quarter as mill production was limited due to a boiler upgrade at the Charleston mill which reduced production by approximately 26,000 tons. KapStone's average mill selling price of $719 per ton in Q1 2018 increased by $71 per ton, or about 11% on a y-o-y basis due to higher prices for most products and a favorable product mix. KapStone's Mill selling prices increased by $21 per ton, or 3% on a y-o-y basis, due to higher specialty product prices and a better product mix.

For Q1 2018, KapStone recorded net income of $32.7 million, or $0.33 per diluted share, compared to $6.0 million, or $0.06 per diluted share, in Q1 2017. The higher earnings in the reported quarter primarily reflected higher selling prices and a better product mix of $48 million, favorable productivity of $10 million mainly due to higher mill production, lower recycled fiber costs of $6 million, non-recurring FY17 costs of $5 million associated with ratifying a union contract at the North Charleston paper mill, a $7 million gain on the sale of the former Oakland box plant site, and a lower effective income tax rate resulting from the passage of the Tax Cuts and Jobs Act passed in December 2017.

On a non-GAAP basis, KapStone recorded earnings of $0.43 per share compared to $0.15 per share in Q1 2017, reflecting growth of 187%. The Company's earnings beat Wall Street's estimates of $0.37 per share.

Cash Flow and Working Capital

As of March 31, 2018, KapStone's cash and cash equivalents were $18.7 million compared to $28.1 million as on December 31, 2017. The Company's operating activities provided $5 million during the reported quarter, while investing activities used $22 million, including $37 million for capital expenditures, partially offset by $15 million of proceeds from the sale of the former Oakland box plant site. KapStone's financing activities provided $8 million of cash in Q1 2018, primarily reflecting higher borrowings, partially offset by a quarterly dividend payment and the Victory Packaging contingent consideration payment.

At March 31, 2018, KapStone had approximately $431 million of working capital and $466 million of revolver borrowing capacity. The Company's net debt to earnings before interest, tax, depreciation, and amortization (EBITDA) ratio as defined by the bank agreement decreased to 2.96 times at March 31, 2018, down from 3.99 a year ago.

Stock Performance Snapshot

May 02, 2018 - At Wednesday's closing bell, KapStone Paper and Packaging's stock was marginally down 0.38%, ending the trading session at $34.28.

Volume traded for the day: 1.01 million shares.

Stock performance in the previous six-month period ? up 54.14%; past twelve-month period ? up 69.28%; and year-to-date ? up 51.08%

After yesterday's close, KapStone Paper and Packaging's market cap was at $3.34 billion.

Price to Earnings (P/E) ratio was at 27.76.

The stock has a dividend yield of 1.17%.

The stock is part of the Consumer Goods sector, categorized under the Paper & Paper Products industry.

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