KapStone Paper and Packaging Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported consolidated net sales of $766 million increased by $28 million or 4% compared to $738 million for the 2016 first quarter. The increase is primarily due to a better product mix, higher containerboard prices and higher sales volume. Operating income was $20,124,000 compared to $34,600,000 a year ago. Income before provision for income taxes was $10,153,000 compared to $24,686,000 a year ago. Net income was $5,992,000 or $0.06 per basic and diluted share compared to $16,174,000 or $0.17 per basic and diluted share a year ago. Non-GAAP EBITDA was $66,231,000 compared to $79,036,000 a year ago. Non-GAAP adjusted EBITDA was $80,796,000 compared to $88,260,000 a year ago. Non-GAAP adjusted net income was $15,095,000 or $0.15 per diluted share compared to $22,235,000 $0.23 per diluted share a year ago. Net cash provided by operating activities was $32,669,000 compared to $58,605,000 a year ago. Capital expenditures were $38,669,000 compared to $36,163,000 a year ago. EBITDA was $66,231,000 compared to $79,036,000 a year ago. Adjusted EBITDA was $80,796,000 compared to $88,260,000 a year ago. Net debt at March 31, 2017 was $1,523 million. Adjusted EBITDA declined sequentially by $11 million, primarily due to Victory's seasonality, higher OCC costs, reinstatement of temporarily suspended employee benefits and an unfavorable productivity and higher costs. Operating cash flow was $33 million or $26 million lower than first quarter 2016. Net debt increased $49 million to $1.523 billion from year-end due to $34 million for the API acquisition and increased working capital.

The company expects CapEx to be $30 million in second quarter of 2017

CapEx full year estimate is $136 million and effective income tax rates will be 34%.