Kapstone Paper Packaging Corporation (KS) has reported 55.09 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $18.34 million, or $0.19 a share in the quarter, compared with $11.82 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.22 million, or $0.24 a share compared with $16.22 million or $0.17 a share, a year ago. Revenue during the quarter went up marginally by 1.73 percent to $777.50 million from $764.24 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 18.30 percent. Total expenses were 95.17 percent of quarterly revenues, down from 96.23 percent for the same period last year. This has led to an improvement of 106 basis points in operating margin to 4.83 percent.
Operating income for the quarter was $37.52 million, compared with $28.81 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $91.82 million compared with $81.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 113 basis points in the quarter to 11.81 percent from 10.68 percent in the last year period.
Matthew Kaplan, president and chief executive officer, stated, "During 2016, we made substantial progress in our initiatives to improve productivity and reduce costs. These efforts helped to mitigate the negative impact of eroding pricing and a less favorable product mix.
Operating cash flow improvesKapstone Paper Packaging Corporation has generated cash of $281.92 million from operating activities during the year, up 7.42 percent or $19.46 million, when compared with the last year. The company has spent $151.75 million cash to meet investing activities during the year as against cash outgo of $743.80 million in the last year.
The company has spent $107.60 million cash to carry out financing activities during the year as against cash inflow of $459.70 million in the last year period.
Cash and cash equivalents stood at $29.38 million as on Dec. 31, 2016, up 330.80 percent or $22.56 million from $6.82 million on Dec. 31, 2015.
Working capital increases
Kapstone Paper Packaging Corporation has recorded an increase in the working capital over the last year. It stood at $428.13 million as at Dec. 31, 2016, up 5.92 percent or $23.93 million from $404.20 million on Dec. 31, 2015. Current ratio was at 2.26 as on Dec. 31, 2016, up from 2.15 on Dec. 31, 2015.
Debt comes down marginally
Kapstone Paper Packaging Corporation has recorded a decline in total debt over the last one year. It stood at $1,485.32 million as on Dec. 31, 2016, down 4.18 percent or $64.82 million from $1,550.15 million on Dec. 31, 2015. Total debt was 45.62 percent of total assets as on Dec. 31, 2016, compared with 48.11 percent on Dec. 31, 2015. Debt to equity ratio was at 1.64 as on Dec. 31, 2016, down from 1.83 as on Dec. 31, 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
