Kapstone Paper & Packaging Corporation (KS) has reported 9.32 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $31.02 million, or $0.32 a share in the quarter, compared with $34.21 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $36.54 million, or $0.37 a share compared with $49.36 million or $0.51 a share, a year ago.
Revenue during the quarter dropped 3.83 percent to $776.64 million from $807.56 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 20.10 percent. Total expenses were 92.92 percent of quarterly revenues, up from 92.37 percent for the same period last year. That has resulted in a contraction of 54 basis points in operating margin to 7.08 percent.
Operating income for the quarter was $55.01 million, compared with $61.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $107.58 million compared with $125.87 million in the prior year period. At the same time, adjusted EBITDA margin contracted 173 basis points in the quarter to 13.85 percent from 15.59 percent in the last year period.
Roger W. Stone, chairman and chief executive officer, stated, "KapStone’s operations performed well in the third quarter with our mills producing 700,000 tons of paper. Net earnings, however, were lower year-over-year primarily reflecting lower prices and a less favorable product mix. In the third quarter of 2016, we announced price increases on domestic containerboard, corrugated products, and extensible grade export kraft paper. We estimate that these increases should be fully implemented by the end of the first quarter of 2017, providing substantial benefits to KapStone.
Operating cash flow improvesKapstone Paper & Packaging Corporation has generated cash of $212.39 million from operating activities during the nine month period, up 20.23 percent or $35.74 million, when compared with the last year period. The company has spent $123.58 million cash to meet investing activities during the nine month period as against cash outgo of $711.94 million in the last year period.
The company has spent $86.18 million cash to carry out financing activities during the nine month period as against cash inflow of $514.59 million in the last year period.
Cash and cash equivalents stood at $9.45 million as on Sep. 30, 2016, up 21.66 percent or $1.68 million from $7.77 million on Sep. 30, 2015.
Working capital decreases marginally
Kapstone Paper & Packaging Corporation has witnessed a decline in the working capital over the last year. It stood at $419.02 million as at Sep. 30, 2016, down 2.81 percent or $12.13 million from $431.15 million on Sep. 30, 2015. Current ratio was at 2.18 as on Sep. 30, 2016, down from 2.26 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 68 days for the last year period. Days sales outstanding went up to 50 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 29 for the same period last year.
Debt comes downKapstone Paper & Packaging Corporation has recorded a decline in total debt over the last one year. It stood at $1,495.87 million as on Sep. 30, 2016, down 6.15 percent or $98.01 million from $1,593.88 million on Sep. 30, 2015. Total debt was 46.11 percent of total assets as on Sep. 30, 2016, compared with 49.04 percent on Sep. 30, 2015. Debt to equity ratio was at 1.67 as on Sep. 30, 2016, down from 1.87 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
