Displaying items by tag: KapStone Paper and Packaging

KapStone Paper and Packaging Corporation (NYSE:KS) (the "Company" or "KapStone") is pleased to announce that, yesterday, union members at its Longview, Washington paper mill and box plant, AWPPW Local 153 ("the Union"), voted to ratify and approved a new contract offer. The Union's bargaining board unanimously supported ratification of the new contract, which expires on May 31, 2024, for the 700-plus members of AWPPW Local 153.

HOMELOGOCommenting on the contract ratification, Randy Nebel, President of KapStone Kraft Paper Corporation, said: "We are pleased with the outcome of the vote. The contract is a competitive agreement, both for the Company and our union employees at Longview. It provides us with greater stability at Longview to focus on building an even stronger business for our customers, employees and shareholders."

About KapStone
Headquartered in Northbrook, Illinois, KapStone is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has 4 paper mills, 22 corrugated converting facilities, 65 distribution centers, and approximately 6,300 employees.

SOURCE KapStone Paper and Packaging Corporation

Published in North American News

KapStone Paper and Packaging Corporation (NYSE: KS) (the "Company" or "KapStone") have just announced it is making an investment in building a new state-of-the-art sheet plant in Ontario, California, as well as investing as a minority partner in a sheet feeder in Ontario, California.  The new sheet plant is expected to be manufacturing boxes by January 2017 and is intended to primarily supply the Company's Victory Packaging operations in Southern California as well as other KapStone customers.  This venture, as well as another minority investment in a sheet feeder announced today, are expected to increase KapStone's vertical integration by over 60,000 tons per year and will ramp up to that level over eighteen months.  Collectively, these investments are expected to be approximately $25 million and will be largely funded before fiscal year end 2016.

HOMELOGORoger Stone, Chairman and Chief Executive Officer of KapStone, said, "These investments are consistent with our strategy to increase the vertical integration of KapStone's mills, reducing exposure to non-integrated end markets, and are in addition to the 20,000 to 25,000 tons per year vertical integration from the Central Florida Box acquisition.  The Ontario, California, sheet plant will further extend our geographic reach to better service KapStone's customers while internalizing the production of some of our Victory Packaging corrugated box demand."

About the Company
Headquartered in Northbrook, Illinois, the Company is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has 4 paper mills, 22 wholly owned corrugated converting facilities including Ontario, California, 65 distribution centers, and approximately 6,300 employees.

Published in Financial News

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") has just announced that the Board of Directors elected Paula H.J. Cholmondeley as a director of the company, effective August 11, 2016.  Ms. Cholmondeley joins the Board of Directors as a Class B director with a term expiring at the annual meeting of stockholders in 2017.  KapStone increased the number of its directors from eleven to twelve.

HOMELOGOMs. Cholmondeley, age 69, is the founder and chief executive officer of The Sorrel Group, LLC, a corporate governance consulting company.  She currently serves as an independent trustee of Nationwide Mutual Funds and as a member of the board of directors of Terex Corporation and Bank of the Ozarks, Inc.  Previously, she also was the vice president and general manager of Specialty Products at Sappi Fine Paper North America, a producer of coated wood-free paper and related products, and served seven years in various financial roles at International Paper Company.  Additionally, she is a part-time faculty member of the National Association of Corporate Directors.  Ms. Cholmondeley graduated from Howard University with a B.A. in Accounting and earned an M.S. in Accounting from The Wharton School at the University of Pennsylvania.

About KapStone

Headquartered in Northbrook, Illinois, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States.  KapStone has 4 paper mills, 22 corrugated converting facilities, 65 distribution centers, and approximately 6,300 employees.

Published in North American News

HOMELOGOKapStone Paper and Packaging Corporation (NYSE: KS) ("the Company") is announcing that due to seasonally softer market conditions, it will temporarily curtail operations at its Longview Mill beginning Monday, Dec. 21 at 7:00 a.m. The curtailment is expected to last seven days for the entire mill and will be extended an additional two days for certain product grades and paper machines. No other KapStone mill location will be taking market-related downtime during this period. This measure will not affect customer orders and service.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 22 converting plants and 65 distribution centers. The business has approximately 6,200 employees.

SOURCE KapStone Paper and Packaging Corporation

Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812

Published in North American News

HOMELOGOKapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone" or "the Company") has announced that its Board of Directors has approved the initiation of a regular quarterly dividend of $0.10 per share. Roger Stone, chairman of the board of directors and chief executive officer, commented, "After the successful Longview Fibre acquisition and subsequent debt reduction, management and the board of directors believe that it is financially prudent to return capital to our shareholders in the form of a regular dividend."

Stone added, "Our dividend is sized to keep KapStone well-positioned to fund future acquisitions and internal investment projects." The dividend record date is December 30, 2014, and the dividend payment date is January 12, 2015. Future declaration of quarterly dividends, however, will remain subject to the final determination of KapStone's Board.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company is the parent company of KapStone Kraft Paper Corporation and KapStone Container Corporation which includes four paper mills and 21 converting plants, respectively, across the US. The business employs approximately 4,600 people.

SOURCE KapStone Paper and Packaging Corporation

Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812

Published in North American News

kapstone logoKapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") will open a new corrugated manufacturing facility in Aurora, IL.  The 192,000 square foot facility located 40 miles west of the city of Chicago will produce corrugated packaging and will also include a design lab and a technical center. KapStone expects to invest approximately $8 to $10 million in the first phase. The Aurora location will enhance KapStone's sales coverage in the Midwest, particularly in Chicago and surrounding areas. 

Matt Kaplan, KapStone's President, stated, "We are excited to establish a corrugated manufacturing facility in the Chicago area, our home territory.   We are very optimistic that KapStone will deliver a very high level of service and quality of corrugated products that will enable us to continue to grow our operations."   

The site General Manager will be Katie Wilhelm who has an extensive career in the corrugated industry predominantly in the Chicago area.

The first phase will begin production at the new facility in March of this year.

SOURCE KapStone Paper and Packaging Corporation

Published in North American News

and kapstoneAndrea K. Tarbox, CFO of KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") has been awarded 2012 Chicago CFO of the year by the Financial Executives International (FEI) Chicago Chapter. 

Chicago CFO of the Year® Awards are presented to senior financial leaders and recognize exceptional performance of financial professionals in their roles as corporate stewards in five categories: large public company, mid-size public company, large private company, mid-size private company and not-for-profit organizations.  

Tarbox, winner in the mid-size public company category, stated, "I consider this a KapStone win.  I am fortunate to have an extraordinary team who were adventurous enough to join the fledgling company and then to execute brilliantly in their areas of expertise."

Roger Stone, KapStone's Chairman and CEO, commented, "In many ways, Andrea is in a class all by herself.  She joined KapStone when it was in formation and she was our only financial employee.  She quickly recruited and built a talented and effective organization.  As the company grew, she integrated our acquisitions and created a cohesive, committed, and motivated group."

Tarbox joined the company in 2006.  KapStone has since grown from $0 in revenue to its current annual run-rate of well over $1 billion. Tarbox's previous career includes financial positions of increasing responsibility in several global companies including Gartner, British Petroleum and Fortune Brands.  Her career began with Ernst & Young.  Andrea earned a BA in psychology from Connecticut College and an MBA from theUniversity of Rhode Island.

SOURCE KapStone Paper and Packaging Corporation

Published in North American News
Tuesday, 30 October 2012 22:23

KapStone Reports Record Third Quarter Results

KapStone Paper and Packaging Corporation has reported results for the third quarter ended September 30, 2012.

  • Net sales of $310 million up $94 million, or 44 percent, versus prior year
  • Net income of $18 million up $2 million, or 13 percent, versus 2011
  • Adjusted EBITDA of $49 million up $7 million, or 17 percent, versus prior year
  • Diluted EPS of $0.38 up $0.03 per share, or 9 percent, versus 2011
  • Adjusted diluted EPS of $0.41 up $0.05 per share, or 14 percent, versus prior year

Roger W. Stone, Chairman and Chief Executive Officer, stated, "The announced $50 per ton containerboard price increase for mid-August shipments was implemented late in the third quarter and is expected to increase fourth quarter 2012 EBITDA by $7 million. Once fully implemented it should boost our EBITDA by approximately $45 million annually.

"Our mills produced 389,000 tons of paper for the quarter. Although this was below our expectations, our Roanoke Rapids mill was impacted by a flood in late August resulting from a rare deluge of rain which curtailed production and added flood clean-up and repair costs. In addition, our Charleston mill also encountered some productivity problems which temporarily impacted their operations.  Fortunately, our mills are now performing well, and Roanoke Rapids has had the best start-up from its annual planned maintenance outage since we have owned the mill."

Third Quarter Operating Highlights

Consolidated net sales of $309.5 million in the third quarter of 2012 increased by $93.7 million, or 43.4 percent compared to $215.8 million for the 2011 third quarter. The increase is primarily due to the USC acquisition which contributed $99.1 million of additional revenue based on selling 1.56 billion square feet of corrugated products compared to none in 2011. In 2012's third quarter, 329,000 tons of paper were sold compared to 327,000 tons a year earlier. The Company's average selling price increased by $2 per ton compared to the second quarter of 2012, but was $14 per ton lower than the third quarter of 2011 due to lower export containerboard prices and product mix.

Operating income of $31.1 million for the 2012 third quarter increased by $1.0 million, or 3.2 percent, compared to the 2011 third quarter. The improved financial performance primarily reflects benefits from the acquisition and the timing of annual planned maintenance outages, partially offset by lower selling prices, unplanned downtime at our Roanoke Rapids, NC mill and unfavorable foreign exchange rates.

Unfavorable foreign exchange rates resulting from the strengthening of the U.S. dollar compared to the euro reduced operating income by $1.5 million.

Interest expense, net was $1.9 million for the third quarter of 2012, up $1.3 million from a year ago as a result of a higher debt balance associated with the acquisition. At September 30, 2012, the interest rate on the term loan was 1.97 percent. Amortization of debt issuance costs of $0.9 million for the third quarter of 2012 increased by $0.5 million from a year ago due to costs associated with the Company's new credit agreement.

The effective tax rate for the third quarter of 2012 was 35.1 percent compared to 42.3 percent for the 2011 third quarter and increased diluted earnings per share by $0.04. The lower effective tax rate is due to a higher expected benefit from the domestic manufacturing deduction and $0.6 million of discrete tax adjustments related to prior years' tax returns. The 2011 effective tax rate included a discrete item for return to provision adjustment. For 2012, the Company estimates its cash tax rate to be about 10 percent reflecting utilization of net operating losses and the cellulosic biofuel tax credit.

Cash Flow and Working Capital

Cash and cash equivalents increased by $26.6 million in the quarter ended September 30, 2012, to $36.3 million reflecting $40.5 million of net cash provided by operating activities, $13.9 million of cash used by investing activities and $0.1 million of cash provided by financing activities.

Capital expenditures for the third quarter of 2012 totaled $13.9 million. The Company estimates $64.0 million of capital expenditures for the year.

At September 30, 2012, the Company had approximately $160.7 million of working capital and $142.8 million of revolver borrowing capacity.

Conclusion

In summary, Stone commented, "In September, we announced our plans to invest $29 million in our Charleston, South Carolina mill to improve our ability to produce ultra high performance lightweight linerboard grades positioning us well for future customer needs.  Our balance sheet and cash flow generation is very strong, and we are well-poised to continue to grow this company profitably."

SOURCE KapStone Paper and Packaging Corporation

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Published in Financial News

The Board of Directors of KapStone Paper and Packaging Corporation (NYSE: KS) has approved a $29MM investment in the company's North Charleston, SC Paper Mill. The investment is expected to improve the capability and efficiency of No. 3 Paper Machine in producing Ultra High Performance (UPL) lightweight linerboard grades by replacing the press section. The new press section will be supplied by PMT Italia. The investment also includes projects in the fiber and utilities areas to support production of these strategically important grades.

chalreston

KapStone has become a market leader among independent box makers by developing and selling lighter weight, high performance, virgin-fiber-based kraft linerboard.

Engineering and construction are expected to occur over the next 18 months, targeting installation of the press section during the 1st Quarter 2014.

SOURCE KapStone Paper and Packaging Corporation

Published in North American News
KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone" or "the Company") will release its 2012 second quarter earnings on Wednesday, August 1, 2012, after the market closes.
 
The Company will host a conference call on Thursday, August 2, 2012 at 11:00 a.m. ET (10:00 a.m. CT) to review the results for the quarter.  All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:
 
Domestic:  866.783.2140
International:  857.350.1599
Participant Passcode:  65901802
 
A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the "Investors" section. 
 
The webcast is also being distributed through the Thomson StreetEvents Network.  Individual investors can listen to the call at http://earnings.com, Thomson's individual investor portal, powered by StreetEvents.  Institutional investors can access the call via Thomson StreetEvents (https://www.streetevents.com) a password-protected event management site. A replay of the webcast will also be on the Web site beginning at approximately 2:00 p.m. ET the same day. 

SOURCE KapStone Paper and Packaging Corporation
Published in Financial News
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