KapStone Paper and Packaging Corporation
KapStone Paper and Packaging — Q2 2018 Earnings Presentation
8 slides from KapStone Paper and Packaging's earnings presentation, Jul 25, 2018
Slide 1: Forward-looking Statements
Forward-looking Statements The information in this presentation may contain certain forward-looking statements within the meaning of federal securities laws. These statements reflect management’s expectations regarding future events and operating performance. Risk Factors These forward-looking state
Slide 2: Second Quarter Financial Results
Second Quarter Financial Results (1) Percentage change calculations made using unrounded source financials (2) Excludes non-cash stock compensation, merger expenses, changes in contingent consideration, union contract ratification costs, and acquisition, integration, expense and other charges. Net o
Slide 3: Q2 2018 Compared to Q2 2017
Q2 2018 Compared to Q2 2017 $138 Price/mix was favorably impacted by higher average mill selling prices, up $75 per ton reflecting: Higher containerboard and corrugated increases and higher specialty products prices of $34 million Favorable product mix of $4 million driven by higher specialty paper
Slide 4: Q2 2018 Compared to Q1 2018
Q2 2018 Compared to Q1 2018 Seasonally Higher Volume and Prices Increase Earnings $9 $15 Price/mix was favorably impacted by higher average mill selling prices, up $17 per ton reflecting: Higher containerboard and corrugated prices, and higher specialty paper products Favorable mix primarily reflect
Slide 5: Cash Flows
Cash Flows For Q2 2018 cash flow from operations increased $11 million YOY primarily due to higher earnings in 2018 Capex of $41 million for the current quarter Net debt at June 30, 2018 - $1,419 million up $23 million from March 31, 2018 No term loan principal payments due until 2020 Debt to EBITDA
Slide 6: Quarterly Key Performance Indicators
Quarterly Key Performance Indicators 7 (1)Containerboard includes all domestic and export sales of linerboard and medium (2)Specialty paper includes Kraft paper, Durasorb, Kraftpak and roll pulp Sales and Production Average Mill Revenue per Ton $736$719 2Q 181Q 182Q 17 Tons Produced (000) 689674688
Slide 7: Maintenance Outage Expense & Production Impact
Maintenance Outage Expense & Production Impact *The 27,500 ton impact includes 25,700 tons for the boiler upgrade at Charleston ** The 17,400 ton impact is mainly due to the annual cold mill outage at Roanoke Rapids, and the continuation of the Charleston boiler upgrade *** The 17,400 tons impact re
Slide 8: Maintenance Outage Expense & Production Impact (table)
2016 Actual 2017 Actual 2018 Actual / Forecast 2016 Actual 2017 Actual 2018 Actual / Forecast $ 6.6 $ 6.2 $ 14.7 4,800 6,400 27,500* $ 19.0 $ 3.8 $ 17.6 $ 13.0 $ 21.0 $ 13.7 12,900 1,900 12,800 11,500 17,400** 17,400*** * The 27,500 ton impact includes 25,700 tons for the boiler upgrade at Charlesto
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