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PKG · Packaging Corp. of America

50 filings

10-Q

PKG 10-Q Quarterly Reports

Packaging Corp. of America - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K91

PKG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 91 current reports (8-K) between 2016 and 2026.

  1. FY2017 annual report10-K · Feb ’18Feb ’18
  2. Impairment8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Impairment8-K · Dec ’25Dec ’25
  1. 2026-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2026

    Packaging Corporation of America (PCA) reported second-quarter 2026 net sales of $2.49 billion, up from $2.17 billion in the second quarter of 2025, and net income of $192.1 million, or $2.15 per diluted share, compared with $241.5 million, or $2.67 per diluted share, a year earlier. Excluding special items, net income was $210.1 million, or $2.35 per diluted share, versus $224.2 million, or $2.48 per diluted share, in the prior-year quarter. The filing attributes the earnings decline in the legacy business to higher freight costs, unfavorable price and mix in the Packaging segment, higher labor and operating costs, higher depreciation and amortization, higher fiber costs, a higher tax rate and higher interest expense, partly offset by higher volumes, lower maintenance outage expense and a $0.14 per share contribution from the acquired Greif containerboard business. For the six months ended June 30, 2026, net sales were $4.86 billion and net income was $363.0 million, or $4.05 per diluted share, versus $445.3 million, or $4.93 per diluted share, a year earlier. Interest expense, net rose to $66.0 million from $26.0 million, reflecting financing for the Greif Acquisition completed on September 2, 2025 for $1.8 billion in cash. Cash flow from operations was $705.3 million for the six months, and capital expenditures were $370.6 million; the company expects 2026 capital investments of $840 million to $870 million. At June 30, 2026, cash and cash equivalents were $442.8 million and long-term debt was $3.97 billion. Management expects third-quarter 2026 earnings, excluding special items, to be higher than the second quarter, citing expected price and mix improvement from two Packaging price increases, one additional shipping day, and fewer mills with annual outages, while noting that freight costs are expected to remain elevated. The filing also discloses a pending class action lawsuit (Artuso Pastry Foods Corp v. Packaging Corporation of America, et al.) alleging containerboard price-fixing, which PCA says is without merit.

    Aug 7, 2026
  2. 2026-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2026

    Packaging Corporation of America (PKG) reported first-quarter 2026 net sales of $2.37 billion, up from $2.14 billion in the first quarter of 2025, with net income of $170.9 million, or $1.91 per diluted share, compared with $203.8 million, or $2.26 per diluted share, a year earlier. Results were weighed down by $44 million of after-tax special items expense, primarily from the Wallula mill restructuring, which included the permanent shutdown of the No. 2 paper machine and kraft pulping facilities. Excluding special items, net income was $215 million, or $2.40 per diluted share, versus $208 million, or $2.31 per diluted share, in the prior-year quarter. The filing attributes the improvement in legacy PCA earnings to higher prices and mix, lower fiber costs, and lower maintenance outage expense, partly offset by a per-share loss from the acquired Greif containerboard business. Income from operations fell to $251.3 million from $280.3 million, while interest expense, net rose to $32.6 million from $12.9 million, reflecting financing for the $1.8 billion Greif Acquisition completed September 2, 2025. Net cash provided by operating activities was $329.3 million, and cash and cash equivalents declined to $397.1 million at March 31, 2026 from $529.0 million at December 31, 2025, as the company spent $164.7 million on capital additions, paid $111.9 million in dividends, and repurchased $58.8 million of common stock. The company expects 2026 capital investments of $840 million to $870 million and expects second-quarter earnings excluding special items to be lower than the first quarter. The filing also discloses a purported class action antitrust lawsuit, filed July 29, 2025, naming PCA and seven other containerboard producers, which alleges price-fixing and seeks treble damages. Management believes the allegations are without merit, and the company states it does not consider any other pending legal actions reasonably likely to have a material adverse effect.

    May 8, 2026
  3. 2025-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2025

    Packaging Corporation of America reported third-quarter 2025 net sales of $2.31 billion, up from $2.18 billion a year earlier, and net income of $226.9 million, or $2.51 per diluted share, compared with $238.1 million, or $2.64 per diluted share, in the third quarter of 2024. Excluding special items, net income was $246.7 million, or $2.73 per diluted share. Results were driven by higher containerboard and corrugated prices and mix, partially offset by lower legacy volume, higher operating costs and higher interest expense. For the first nine months of 2025, net sales were $6.63 billion and net income was $672.3 million, or $7.45 per diluted share. The quarter was dominated by the September 2, 2025 acquisition of the containerboard business of Greif, Inc. for $1.8 billion in cash, which adds two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants. The purchase was financed with $1.5 billion of net debt proceeds, including $500 million of 5.20% senior notes due 2035 and $1.0 billion of term loans, and total long-term debt rose to $3.97 billion from $2.47 billion at December 31, 2024. Net cash provided by operating activities was $1.11 billion for the nine months, compared with $866 million a year earlier. Management expects fourth-quarter earnings to be lower than the third quarter of 2025, citing a scheduled DeRidder maintenance outage, seasonally lower prices and volumes, and continued Massillon mill outage effects. The company also faces a newly filed purported class action alleging containerboard price-fixing, which it says is without merit and will be defended vigorously.

    Nov 6, 2025
  4. 2025-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2025

    Packaging Corporation of America reported second-quarter 2025 net sales of $2,171.3 million, up from $2,075.3 million in the second quarter of 2024, and net income of $241.5 million, or $2.67 per diluted share, versus $198.9 million, or $2.21 per diluted share, a year earlier. Net income included $17 million of net special items income in the quarter; excluding special items, net income was $224.2 million, or $2.48 per diluted share. Income from operations rose to $333.7 million from $276.0 million, driven primarily by higher containerboard and corrugated products prices and mix in the Packaging segment and lower fiber costs, partially offset by higher operating costs, maintenance outage expense, and freight expense. For the six months ended June 30, 2025, net sales were $4,312.3 million and net income was $445.3 million, or $4.93 per diluted share. Cash flow and liquidity remained solid. Net cash provided by operating activities for the first six months was $638.7 million, compared with $538.7 million a year earlier, and cash and cash equivalents stood at $787.9 million at June 30, 2025. Long-term debt was $2,475.2 million, and all of the company's debt carried fixed interest rates. The company expects 2025 capital investments of $840 million to $870 million and expects third-quarter earnings, excluding special items, to be higher than second-quarter earnings. The filing also discloses a definitive agreement announced July 1, 2025 to buy the containerboard business of Greif, Inc. for $1.8 billion in cash, which includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants; closing is expected by the end of the third quarter, subject to customary conditions including regulatory approval. In addition, on July 29, 2025, the company and seven other containerboard producers were named as defendants in a purported class action alleging antitrust violations, which the company says is without merit.

    Aug 7, 2025
  5. 2025-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2025

    Packaging Corporation of America reported first-quarter 2025 net sales of $2.14 billion, up from $1.98 billion in the first quarter of 2024, and net income of $203.8 million, or $2.26 per diluted share, compared with $146.9 million, or $1.63 per diluted share, a year earlier. Excluding special items, net income was $208.2 million, or $2.31 per diluted share. The increase was driven primarily by higher containerboard and corrugated prices and mix and higher Packaging volume, partially offset by higher operating costs and lower Paper segment volume. Packaging segment operating income rose to $278.1 million from $203.8 million, while Paper segment operating income rose to $35.6 million from $29.7 million. Cash flow from operations was $339.1 million, compared with $260.4 million a year earlier, while capital expenditures were $148.1 million. At March 31, 2025, the company held $751.7 million in cash and cash equivalents, $91.4 million in short-term and $71.3 million in long-term marketable debt securities, and $2,474.7 million of long-term debt. Management expects 2025 capital investments of $840 million to $870 million and expects second-quarter earnings to be higher than first-quarter earnings, citing planned price increases, offset by higher costs from an outage moved into the second quarter, higher freight costs, and higher depreciation. The company paid $112.3 million in dividends and declared a regular quarterly dividend of $1.25 per share. It did not repurchase shares during the quarter, leaving $436.0 million available under its repurchase authorization. The company also disclosed a DeRidder litigation settlement of $59.2 million, which had not yet been paid as of March 31, 2025, with an offsetting insurance receivable of the same amount.

    May 8, 2025
  6. 2024-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2024

    Packaging Corporation of America reported third-quarter 2024 net sales of $2.18 billion, up from $1.94 billion a year earlier, and net income of $238.1 million, or $2.64 per diluted share, compared with $183.2 million, or $2.03 per diluted share, in the third quarter of 2023. The increase was driven primarily by higher Packaging volume and prices/mix, lower freight and logistics expenses, and lower scheduled outage expenses, partly offset by higher operating and converting costs and higher depreciation. Management expects fourth-quarter earnings to be lower than third-quarter earnings, citing two fewer shipping days, seasonally higher energy and chemical costs, higher scheduled mill maintenance outage costs, and a slightly higher depreciation expense. For the first nine months of 2024, net sales were $6.24 billion and net income was $584.0 million, or $6.48 per diluted share, versus $6.38 per diluted share a year earlier. Cash provided by operating activities was $865.8 million, down from $979.8 million, while capital additions rose to $468.4 million from $328.6 million, and the company expects 2024 capital investments of $670 million to $690 million. The company repaid $400 million of 3.65% senior notes due September 2024 using proceeds from a 5.70% note offering and cash on hand, and ended the period with $676.6 million of cash and cash equivalents and $2.49 billion of fixed-rate senior notes outstanding. A key item for investors is the DeRidder litigation: a jury awarded plaintiffs about $91.8 million in compensatory damages in April 2024, and the company recorded a $127.7 million accrual, including $35.9 million of interest, offset by an equal insurance recovery receivable. The company intends to appeal and believes its insurance covers the verdict and interest.

    Nov 7, 2024
  7. 2024-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2024

    Packaging Corporation of America reported second-quarter 2024 net sales of $2.08 billion, up from $1.95 billion in the second quarter of 2023, and net income of $198.9 million, or $2.21 per diluted share, compared with $202.7 million, or $2.24 per diluted share, a year earlier. Excluding special items, diluted EPS was $2.20 versus $2.31. The filing attributes the earnings decline mainly to lower Packaging and Paper prices and mix, higher operating costs and depreciation, and a higher tax rate, partially offset by higher Packaging and Paper volumes. Packaging segment income from operations was $280 million, compared with $286 million a year earlier, while Packaging volumes benefited from a new all-time containerboard production record of 1.3 million tons. For the first six months of 2024, net sales rose to $4.05 billion from $3.93 billion, but income from operations fell to $472.0 million from $555.0 million and net income declined to $345.9 million from $392.8 million. The filing notes a $125.7 million accrual for the DeRidder litigation jury verdict, offset by an equal insurance recovery receivable. Operating cash flow for the six months was $538.7 million, down from $640.3 million, while capital expenditures were $321.7 million. Cash and cash equivalents ended the period at $613.6 million, and the company did not repurchase any shares during the quarter. Management expects third-quarter 2024 earnings to be higher than second-quarter earnings, citing expected price and mix improvements, higher containerboard volume, and a potential new third-quarter shipment record, partly offset by seasonal energy costs and one fewer shipping day. The company expects 2024 capital investments of $670 million to $690 million, and all of its debt carries fixed interest rates.

    Aug 8, 2024
  8. 2024-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2024

    Packaging Corporation of America reported first-quarter 2024 net sales of $1,979.5 million, essentially flat versus $1,976.3 million in the first quarter of 2023. Net income was $146.9 million, or $1.63 per diluted share, compared with $190.1 million, or $2.11 per diluted share, a year earlier. Excluding special items, net income was $154.6 million, or $1.72 per diluted share, versus $198.3 million, or $2.20 per diluted share, in the prior-year quarter. The decline was driven primarily by lower containerboard and corrugated products prices and mix, higher scheduled mill outage expenses, and higher depreciation, partially offset by higher volumes and lower operating and converting costs. Packaging segment income from operations fell to $203.8 million from $268.0 million, while Paper segment income from operations was $29.7 million compared with $34.1 million. Cash generation remained solid, with net cash provided by operating activities of $260.4 million and cash and cash equivalents of $692.4 million at March 31, 2024. The company paid $112.0 million in dividends and did not repurchase any shares under its $1 billion authorization, leaving $436.0 million available. Management expects capital investments of $470 million to $490 million in 2024 and anticipates second-quarter earnings will be higher than the first quarter, citing announced price increases and higher published index prices. A material subsequent event occurred on April 24, 2024, when a jury in the remaining DeRidder mill lawsuit awarded plaintiffs approximately $91.8 million in compensatory damages plus prejudgment interest. The company recorded a $123.7 million accrual, including $31.9 million of interest, and an equal $123.7 million insurance recovery receivable, and it intends to appeal, believing its insurance covers the verdict.

    May 8, 2024
  9. 2023-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2023

    Packaging Corporation of America reported third-quarter 2023 net sales of $1.94 billion, down from $2.13 billion in the third quarter of 2022, and net income of $183.2 million, or $2.03 per diluted share, compared with $262.5 million, or $2.80 per diluted share, a year earlier. For the nine months ended September 30, 2023, net sales were $5.86 billion versus $6.50 billion, and net income was $576.0 million, or $6.38 per diluted share, versus $818.2 million, or $8.70 per diluted share. Management attributed the decline primarily to lower Packaging prices and mix and lower volumes, along with higher depreciation expense, a higher tax rate, and other expenses, partly offset by lower operating costs. Packaging segment income from operations fell to $257 million in the quarter from $359 million, and the company stated it expects fourth-quarter earnings to be lower than the third quarter. The balance sheet remained solid, with cash and cash equivalents of $573.2 million at September 30, 2023, up from $320.0 million at December 31, 2022, and total long-term debt of $2,075.7 million, with $399.5 million classified as current maturities. Operating cash flow for the nine months was $979.8 million, compared with $1,074.9 million a year earlier, while capital expenditures were $328.6 million. The company paid $336.9 million in dividends and repurchased $41.5 million of common stock during the period, with $436.0 million remaining under its repurchase authorization. Management expects 2023 capital investments of approximately $475 million and plans to restart the No. 3 machine at its Wallula mill in the fourth quarter as demand improves. The company reported that it is not aware of any material liabilities from guarantees and that legal proceedings are not reasonably expected to have a material adverse effect. The DeRidder mill incident litigation remains pending, and the company stated it is unable to estimate a range of reasonable possible losses for those cases.

    Nov 3, 2023
  10. 2023-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2023

    Packaging Corporation of America (PKG) reported a quarter of lower sales and earnings for the three months ended June 30, 2023. Net sales were $1.95 billion, down from $2.24 billion in the second quarter of 2022, and net income was $202.7 million, or $2.24 per diluted share, compared with $301.5 million, or $3.20 per diluted share, a year earlier. Management attributed the decline primarily to lower volumes in the Packaging and Paper segments, lower Packaging prices and mix, and higher depreciation. Excluding special items, diluted EPS was $2.31 versus $3.23 in the prior-year quarter. For the six months ended June 30, 2023, net sales were $3.93 billion and net income was $392.8 million, or $4.35 per diluted share. Net cash provided by operating activities was $640.3 million, and the company held $477.1 million in cash and cash equivalents at June 30, 2023. Dividends paid in the first half totaled $224.5 million, and no shares were repurchased under the $1 billion authorization, leaving $477.5 million available. All debt was at fixed rates as of June 30, 2023. Looking ahead, management expects third-quarter earnings to be lower than the second quarter, citing lower containerboard prices, one fewer shipping day, higher scheduled outage expenses at the International Falls, MN mill, and slightly higher depreciation, freight and tax rate. Planned 2023 capital investments are approximately $475 million.

    Aug 4, 2023
  11. 2023-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2023

    Packaging Corporation of America reported first-quarter 2023 net sales of $1.98 billion, down from $2.14 billion in the first quarter of 2022, and net income of $190 million, or $2.11 per diluted share, compared with $254 million, or $2.70 per diluted share, a year earlier. Net income excluding special items was $198 million, or $2.20 per diluted share. The company attributed the decline primarily to lower volumes in its Packaging and Paper segments and higher operating costs, depreciation, freight and logistics expenses, converting costs, and non-operating pension expense, partially offset by higher prices and mix. Packaging segment income from operations fell to $268 million from $362 million, while Paper segment income from operations rose to $34 million from $22 million. Management expects second-quarter earnings to be lower than the first quarter. It anticipates improved Packaging volume despite one fewer shipping day, but lower prices following previously published domestic containerboard price decreases and lower export prices. It also expects higher converting costs, scheduled maintenance outage expense, depreciation, and freight and logistics expenses, the last driven by contract rail rate increases at most mills. Liquidity remained solid, with $368 million of cash and cash equivalents, $152 million of marketable debt securities, and $321 million of unused revolving credit capacity at March 31, 2023. Operating cash flow was $280 million and capital expenditures were $112 million, and the company expects 2023 capital investments of approximately $475 million. Dividends of $1.25 per share were declared, and no shares were repurchased during the quarter, leaving $477.5 million available under the repurchase authorization.

    May 3, 2023
  12. 2022-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2022

    Packaging Corporation of America (PKG) reported third-quarter 2022 net sales of $2,125.9 million, up from $2,000.1 million in the third quarter of 2021, and net income of $262.5 million, or $2.80 per diluted share, compared with $250.7 million, or $2.63 per diluted share, a year earlier. Net income excluding special items was $266 million, or $2.83 per diluted share. The company attributed the earnings increase primarily to higher prices and mix in its Packaging and Paper segments, lower interest expense, and a lower tax rate, partially offset by higher operating costs, lower volumes, higher freight and logistics expenses, higher scheduled outage expenses, and higher depreciation. For the nine months ended September 30, 2022, net sales were $6,499.6 million and net income was $818.2 million, or $8.70 per diluted share, versus $624.6 million, or $6.55 per diluted share, in the prior-year period. For the nine months, net cash provided by operating activities was $1,074.9 million, while capital expenditures were $577.1 million, and the company paid $304.4 million in dividends and repurchased $142.0 million of common stock. At September 30, 2022, the company had $648.7 million of cash and cash equivalents, $77.7 million of short-term marketable debt securities, and $67.1 million of long-term marketable debt securities, and all of its outstanding debt carried fixed interest rates. The company expects 2022 capital investments of approximately $820 million, including the conversion of the No. 3 paper machine at its Jackson, Alabama mill to containerboard. Management expects fourth-quarter earnings per share to be lower than the third quarter, citing lower Packaging demand, four fewer shipping days, scheduled outage expenses, and higher operating and energy costs. The filing also notes a settlement with the EPA and DOJ related to the DeRidder mill, under which the company will pay a $2.5 million civil penalty, subject to a 45-day notice and comment period. The company reports that it is not aware of any reasonably possible material adverse effect from its ordinary-course legal actions, and it describes the DeRidder lawsuits as in the early stages, with a loss range that cannot be estimated.

    Nov 3, 2022
  13. 2022-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2022

    Packaging Corporation of America reported second-quarter 2022 net sales of $2,237.3 million, up from $1,879.9 million in the second quarter of 2021, and net income of $301.5 million, or $3.20 per diluted share, compared with $207.3 million, or $2.17 per diluted share, a year earlier. For the six months ended June 30, 2022, net sales were $4,373.7 million and net income was $555.7 million, or $5.91 per diluted share. The Packaging segment drove the results, with higher prices and mix ($286 million in the quarter) and higher containerboard and corrugated volume ($62 million in the quarter). Packaging segment income from operations rose to $419.8 million in the quarter from $317.2 million, and Paper segment income rose to $22.7 million from $2.6 million. The company generated $644.3 million of operating cash flow in the first six months of 2022, versus $419.8 million a year earlier, and spent $397.5 million on additions to property, plant and equipment. At June 30, 2022, it held $667.3 million of cash and cash equivalents, $82.3 million of short-term and $61.2 million of long-term marketable debt securities, and long-term debt of $2,472.6 million. All of its debt carried fixed interest rates. The company did not repurchase shares under its $1 billion authorization during the quarter, and it announced an increase in its quarterly dividend to $1.25 per share from $1.00. Management stated that third-quarter earnings are expected to be lower than second-quarter earnings, excluding special items, citing inflation in operating and converting costs, higher freight expenses, and a postponed International Falls mill outage moved into the third quarter. The company also noted that its Advance Packaging acquisition, completed in December 2021, was excluded from its internal control assessment for 2022. The DeRidder mill incident litigation remains pending, and the company says it cannot estimate a range of reasonable possible losses for those cases.

    Aug 4, 2022
  14. 2022-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2022

    Packaging Corporation of America reported first-quarter 2022 net sales of $2.14 billion, up from $1.81 billion in the first quarter of 2021, and net income of $254 million, or $2.70 per diluted share, versus $167 million, or $1.75 per diluted share, a year earlier. Excluding special items, diluted EPS was $2.72 compared with $1.77. The filing attributes the increase primarily to higher prices and mix and volume in the Packaging segment, higher prices and mix in the Paper segment, a lower share count from fourth-quarter 2021 repurchases, and lower interest expense, partially offset by inflation in energy, fiber, chemicals, labor, and materials, higher freight and logistics costs, higher depreciation, lower Paper volume, and a higher tax rate. Packaging segment income from operations rose to $362 million from $258 million, and Paper segment income rose to $22 million from $9 million. Cash flow strengthened, with net cash from operating activities of $325.3 million versus $191.6 million, while investing outflows rose to $221.2 million, driven by $213.2 million of capital additions. Management expects 2022 capital investments of approximately $800 million, including the conversion of the No. 3 paper machine at the Jackson, Alabama mill to containerboard. At March 31, 2022, the company had $628.6 million of cash and cash equivalents, $81.3 million of short-term and $68.5 million of long-term marketable debt securities, $2.47 billion of long-term debt, and all of its debt at fixed rates. Management expects second-quarter earnings to exceed first-quarter earnings, excluding special items, citing strong packaging demand and higher prices. The filing also discloses ongoing litigation and regulatory matters tied to the February 2017 DeRidder, Louisiana mill tank explosion, which resulted in three contractor fatalities. The company states the lawsuits are covered by liability insurance and that it cannot estimate a range of reasonable possible losses. An EPA investigation is ongoing, with civil judicial enforcement discussions initiated in January 2021 and no complaint filed as of the filing date.

    May 5, 2022
  15. 2021-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2021

    Packaging Corporation of America reported third-quarter 2021 net sales of $2.00 billion, up from $1.69 billion in the third quarter of 2020, and net income of $250.7 million, or $2.63 per diluted share, compared with $139.1 million, or $1.46 per diluted share, a year earlier. Excluding special items, diluted EPS was $2.69 versus $1.57. The Packaging segment drove the improvement, with segment income from operations of $365.2 million versus $222.4 million, attributed mainly to higher containerboard and corrugated prices and mix and higher volumes. For the nine months ended September 30, 2021, net sales were $5,687.1 million and net income was $624.6 million, or $6.55 per diluted share. Management expects fourth-quarter earnings to be lower than third-quarter earnings, citing lower Packaging volume from three fewer shipping days and a scheduled outage at the DeRidder mill, higher energy and wood costs, and continued inflation in operating, converting and freight costs. Paper segment volume is expected to decline as the Jackson mill No. 3 machine no longer produces uncoated grades. Balance sheet liquidity remained strong, with $1,702.9 million of cash and cash equivalents at September 30, 2021. The company issued $700.0 million of 3.05% senior notes due 2051 to refinance its 4.50% notes due 2023, which were redeemed on October 8, 2021 for $769.8 million. On October 22, 2021, the company agreed to acquire substantially all assets of Advance Packaging Corporation for a cash price of $189 million, with closing expected in the fourth quarter of 2021.

    Nov 4, 2021
  16. 2021-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2021

    Packaging Corporation of America (PKG) reported a strong second quarter of 2021, with net sales of $1,879.9 million, up from $1,541.6 million in the second quarter of 2020, and net income of $207.3 million, or $2.17 per diluted share, versus $56.7 million, or $0.59 per diluted share, a year earlier. Results were driven mainly by higher prices and mix and volume in the Packaging segment, higher volume in the Paper segment, and lower non-operating pension expense, partially offset by higher operating costs, outage expenses, and freight and logistics costs. For the six months ended June 30, 2021, net sales were $3,687.0 million and net income was $373.8 million, or $3.92 per diluted share. The prior-year second quarter included a $55.2 million non-cash goodwill impairment in the Paper segment, which is the main reason for the year-over-year swing in reported results. Packaging segment income from operations was $317.2 million in the second quarter of 2021 versus $197.6 million a year earlier, while Paper segment income from operations was $2.6 million compared with a loss of $61.4 million. The company reported $972.2 million of cash and cash equivalents at June 30, 2021, and $2,494.0 million of fixed-rate senior notes outstanding. Net cash provided by operating activities was $419.8 million for the six months, and 2021 capital investments are expected to be between $650 million and $675 million. Management stated it expects third-quarter earnings to be higher than second-quarter earnings, citing continued strong containerboard and corrugated demand and fewer mill outages. On June 8, 2021, the company entered into a new $350 million unsecured revolving credit facility with a five-year term, replacing the prior credit agreement, and no borrowings were outstanding under it. The company also disclosed an EPA enforcement matter at its DeRidder, Louisiana facility and a Clean Air Act notice of violation at its Wallula, Washington mill, both of which it is contesting.

    Aug 5, 2021
  17. 2021-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2021

    Packaging Corporation of America reported first-quarter 2021 net income of $166.5 million, or $1.75 per diluted share, compared with $141.7 million, or $1.49 per diluted share, in the first quarter of 2020. Net sales rose to $1.81 billion from $1.71 billion. Excluding special items, net income was $168.9 million, or $1.77 per diluted share. The increase was driven primarily by higher volume and prices and mix in the Packaging segment and lower annual outage expenses, partially offset by weaker Paper segment results, higher operating and freight costs, and other expenses. Segment performance diverged sharply. Packaging segment income from operations rose to $257.9 million from $199.8 million, and Packaging EBITDA excluding special items was $352.1 million versus $289.9 million. Paper segment income from operations fell to $8.7 million from $32.5 million, as Paper net sales decreased 24.2% to $164.6 million amid COVID-19 related demand declines. The company noted that the Jackson, Alabama No. 3 machine is being permanently converted from uncoated freesheet paper to linerboard. Management expects higher second-quarter expenses from mill maintenance outages and continued inflation in freight and operating costs, while anticipating higher paper pricing from recently announced increases. From a balance sheet and cash flow perspective, cash and cash equivalents were $983.4 million at March 31, 2021, with total debt of about $2.5 billion, all at fixed rates. Operating cash flow was $191.6 million, down from $236.7 million, largely due to larger receivables growth and lower payables. The company paid $94.8 million in dividends and did not repurchase shares during the quarter, leaving $193.0 million available under its repurchase authorization. Management expects 2021 capital investments of $650 million to $675 million.

    May 5, 2021
  18. 2020-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2020

    Packaging Corporation of America reported third-quarter 2020 net sales of $1.69 billion, down from $1.75 billion in the same quarter of 2019, and net income of $139.1 million, or $1.46 per diluted share, versus $179.8 million, or $1.89 per diluted share, a year earlier. Excluding special items, third-quarter net income was $149.2 million, or $1.57 per diluted share. Nine-month net sales were $4.94 billion and net income was $337.4 million, or $3.54 per diluted share, compared with $560.2 million, or $5.91 per diluted share, in the first nine months of 2019. The decline was driven mainly by lower containerboard and corrugated prices and mix in the Packaging segment and sharply lower volumes and prices in the Paper segment, which the filing attributes in part to COVID-19 demand effects. The Paper segment was the main source of weakness. Nine-month Paper segment results included a $55.2 million non-cash goodwill impairment, which was not tax deductible, and the segment posted a loss from operations of $21.7 million. Packaging segment income from operations was $619.9 million for the nine months, compared with $748.6 million a year earlier. Third-quarter Hurricane Laura disrupted production at the DeRidder, Louisiana mill, with about $10 million of related charges classified as special items. Management also announced a $50 per ton containerboard price increase effective November 1, 2020. Balance sheet and cash flow remained solid. At September 30, 2020, cash and cash equivalents were $949.1 million, and total debt in the form of long-term debt was $2,478.7 million. Net cash from operating activities for the nine months was $761.7 million, versus $878.2 million a year earlier, and the company paid $224.6 million in dividends. The quarterly dividend was $0.79 per share. Management expects 2020 capital investments of $400 million to $425 million.

    Nov 5, 2020
  19. 2020-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2020

    Packaging Corporation of America (PCA) reported second-quarter 2020 net sales of $1.54 billion, down from $1.76 billion in the second quarter of 2019, and net income of $56.7 million, or $0.59 per diluted share, compared with $193.6 million, or $2.04 per diluted share, a year earlier. Net income included $75 million of special items, primarily a non-cash $55.2 million goodwill impairment for the Paper reporting unit, charges tied to the closure of the San Lorenzo, California corrugated products facility, and $6.1 million of incremental COVID-19 costs. Excluding special items, second-quarter net income was $131.8 million, or $1.38 per diluted share. The company attributed the decline primarily to lower prices and mix in its Packaging and Paper segments and lower Paper volumes, partly offset by lower operating costs, outage expenses and freight expense. Segment results diverged sharply. Packaging segment income from operations fell to $197.6 million from $263.9 million, and management stated that demand for its packaging products remained strong in the quarter. Paper segment sales fell 48.1% to $123.3 million, and the segment posted a loss from operations of $61.4 million; the Jackson, Alabama paper mill was temporarily idled in late April and was expected to remain idle at least through the end of August. Office Depot accounted for approximately 44% of Paper segment sales in the first six months of 2020. Balance sheet and cash flow remained solid. At June 30, 2020, the company held $853.3 million of cash and cash equivalents and $123.2 million of marketable debt securities, with $326 million of unused revolver capacity net of letters of credit. Operating cash flow for the first six months was $463.5 million, versus $538.4 million a year earlier, and the company paid $149.7 million in dividends. Management expects 2020 capital investments of $400 million to $425 million, and the company did not repurchase shares during the quarter.

    Aug 6, 2020
  20. 2020-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2020

    Packaging Corporation of America reported first-quarter 2020 net sales of $1.71 billion, down from $1.73 billion in the first quarter of 2019, and net income of $142 million, or $1.49 per diluted share, compared with $187 million, or $1.97 per diluted share, a year earlier. Net income excluding special items was $143 million, or $1.50 per diluted share. The filing attributes the decline primarily to lower prices and mix in the Packaging and Paper segments, lower Paper volumes, higher annual outage expenses, higher depreciation and other expenses, and a higher tax rate, partially offset by higher Packaging volumes, lower operating and converting costs, lower freight and logistics costs, and lower interest expense. Packaging segment income from operations fell to $200 million from $250 million, while Paper segment income fell to $33 million from $46 million. The company said its facilities were permitted to continue operating as essential operations during the COVID-19 pandemic and that it had not experienced significant disruptions to date. Packaging saw higher than expected sales volume after the outbreak began, while Paper demand was expected to fall significantly in the second quarter, leading the company to temporarily cease operations at its Jackson, Alabama paper mill during May and June, reducing production by approximately 70,000 tons. On April 27, 2020, the company also announced the closure of its San Lorenzo, California corrugated products plant, with expected charges of $23 million to $31 million, mostly in the second quarter. Liquidity remained solid, with $764 million of cash and cash equivalents, $149 million of marketable debt securities, and $329 million of unused revolver capacity at March 31, 2020. Operating cash flow was $237 million, investing outflows were $77 million, and financing outflows were $75 million, mainly dividends. Management expects 2020 capital investments of $400 million to $425 million, and all of its debt carries fixed interest rates. The company declared a quarterly dividend of $0.79 per share and did not repurchase any shares during the quarter.

    May 6, 2020
  21. 2019-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2019

    Packaging Corporation of America reported third-quarter 2019 net sales of $1.75 billion, down from $1.81 billion a year earlier, and net income of $179.8 million, or $1.89 per diluted share, versus $206.7 million, or $2.18 per diluted share, in the third quarter of 2018. Excluding special items, diluted EPS was $1.92 compared with $2.23. The decline was driven primarily by lower containerboard and corrugated products prices and mix, lower Packaging volumes, and higher operating and converting costs. Management expects fourth-quarter 2019 earnings to be lower than the third quarter, citing lower prices, a seasonally less rich mix, and higher energy and maintenance outage costs. For the first nine months of 2019, net sales were $5.24 billion versus $5.27 billion, and net income was $560.2 million, or $5.91 per diluted share, compared with $533.4 million, or $5.64 per diluted share. Operating cash flow rose to $878.2 million from $834.5 million, while capital spending fell to $263.8 million from $404.3 million. Cash and cash equivalents increased to $738.3 million at September 30, 2019, from $361.5 million at year-end 2018. The balance sheet shows long-term debt of $2,486.3 million and total stockholders' equity of $3,034.7 million. The company adopted ASC 842 on January 1, 2019, recording operating lease liabilities of $228 million. It paid $223.9 million in dividends during the nine months and declared a regular quarterly dividend of $0.79 per share. Management stated that the company is not a party to any material pending legal action, though the DeRidder mill incident lawsuits remain in early stages with no estimable loss range.

    Nov 1, 2019
  22. 2019-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2019

    Packaging Corporation of America (PCA) reported second-quarter 2019 net sales of $1,759.9 million, compared with $1,767.5 million in the second quarter of 2018, and net income of $193.6 million, or $2.04 per diluted share, versus $186.6 million, or $1.97 per diluted share, a year earlier. For the six months ended June 30, 2019, net sales were $3,493.6 million and net income was $380.4 million, or $4.02 per diluted share, compared with $3,458.1 million and $326.7 million, or $3.46 per diluted share, in the prior-year period. The filing attributes the second-quarter decline in earnings to higher operating costs, higher converting costs, lower Paper segment volume, higher annual outage expenses and a higher tax rate, partly offset by higher Packaging volume and prices and mix. The second quarter of 2019 included no special items, compared with $10 million of expense in the second quarter of 2018. The Packaging segment's income from operations was $263.9 million in the second quarter of 2019 versus $273.2 million a year earlier, while the Paper segment's rose to $38.8 million from $16.2 million, reflecting higher prices and mix. Management expects third-quarter 2019 earnings to be lower than second-quarter earnings, citing lower domestic containerboard and export prices, partly offset by seasonally higher shipments. Cash and cash equivalents were $569.4 million at June 30, 2019, and net cash provided by operating activities for the six months was $538.4 million. Capital expenditures were $170.9 million in the first half, and management expects 2019 capital investments of $390 million to $410 million, excluding acquisitions. The company adopted ASC 842 (Leases) on January 1, 2019, recording operating lease liabilities of $228 million, and reported that all of its outstanding debt carried fixed interest rates at June 30, 2019. Its fixed-rate senior notes totaled $2,496.7 million, with an estimated fair value of $2,582.2 million. The company did not repurchase shares during the quarter and had $193.0 million remaining under its repurchase authorization.

    Aug 2, 2019
  23. 2019-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2019

    Packaging Corporation of America (PKG) reported first-quarter 2019 net sales of $1.73 billion, up from $1.69 billion in the first quarter of 2018, and net income of $186.8 million, or $1.97 per diluted share, compared with $140.1 million, or $1.48 per diluted share, a year earlier. Excluding special items, diluted EPS was $1.98 versus $1.55. The Packaging segment drove the improvement, with income from operations of $249.6 million versus $224.7 million, reflecting higher containerboard and corrugated products prices and mix, and higher sales and production volumes. Paper segment income from operations rose to $45.6 million from $7.2 million, helped by higher prices and mix and lower operating costs, partially offset by lower paper volumes tied to the exit from the paper business at the Wallula mill. Cash generation and liquidity were solid. Net cash provided by operating activities was $236.0 million, versus $202.5 million a year earlier, and the company ended the quarter with $442.4 million of cash and $328 million of unused revolver capacity, net of letters of credit. Capital expenditures were $78.8 million, and the company paid $74.7 million in dividends. Long-term debt was $2,484.6 million, and all of the company's debt carried fixed interest rates at March 31, 2019. The company did not repurchase shares in the quarter, leaving $193.0 million available under its repurchase authorization. Management expects second-quarter 2019 earnings to be higher than the first quarter, citing seasonally higher containerboard and corrugated shipments, offset by lower prices following published domestic containerboard price decreases. The company also expects 2019 capital investments of $390 million to $410 million, excluding acquisitions. The company adopted ASC 842 (Leases) on January 1, 2019, recording operating lease liabilities of $228 million.

    May 8, 2019
  24. 2018-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2018

    Packaging Corporation of America (PCA) reported net income of $206.7 million, or $2.18 per diluted share, for the third quarter of 2018, up from $139.1 million, or $1.47 per diluted share, in the third quarter of 2017. Net sales rose to $1,809.9 million from $1,640.1 million. Excluding special items, diluted EPS was $2.23 versus $1.68 a year earlier. For the first nine months of 2018, net income was $533.4 million, or $5.64 per diluted share, compared with $399.7 million, or $4.23 per diluted share, in the same period of 2017. Net sales for the nine months were $5,268.1 million, and net cash provided by operating activities was $834.5 million versus $583.3 million a year earlier. Growth was driven mainly by the Packaging segment, where higher containerboard and corrugated products prices and mix and higher sales and production volumes offset higher operating and converting costs. Packaging segment income from operations was $284.4 million in the third quarter of 2018. The Paper segment swung to income from operations of $32.3 million from a loss of $2.6 million a year earlier, on higher prices and mix. The company repaid $150.0 million of 6.50% Senior Notes in March 2018 and had $293.8 million of cash at September 30, 2018. Capital expenditures for the nine months were $404.3 million, and the company expects 2018 capital investments of $530 million to $550 million. Management expects fourth-quarter 2018 earnings, excluding special items, to be lower than third-quarter 2018, citing two fewer shipping days, a seasonally less rich mix, higher fuel costs, continued cost inflation, and an extended outage at the Wallula Mill to complete the No. 3 machine's conversion from paper to linerboard. The company also disclosed that three contractor fatalities from a February 2017 tank explosion at its DeRidder, Louisiana mill are the subject of lawsuits that it is vigorously defending.

    Nov 7, 2018
  25. 2018-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2018

    Packaging Corporation of America (PCA) reported second-quarter 2018 net sales of $1,767.5 million, up from $1,584.0 million in the second quarter of 2017, and net income of $186.6 million, or $1.97 per diluted share, compared with $143.2 million, or $1.52 per diluted share, a year earlier. Excluding special items, which were primarily Wallula mill restructuring charges, the company reported net income of $197.0 million, or $2.08 per diluted share. For the first six months of 2018, net sales were $3,458.1 million and net income was $326.7 million, or $3.46 per diluted share. The Packaging segment drove the growth, with higher containerboard and corrugated products prices and mix and higher sales and production volumes, while the Paper segment's income from operations declined to $16.2 million in the quarter from $27.2 million a year earlier. Cash flow from operations for the six months rose to $533.5 million from $385.6 million, and capital expenditures were $273.9 million. The company repaid $150.0 million of 6.50% Senior Notes due March 2018 using cash on hand, leaving cash and cash equivalents of $199.6 million at June 30, 2018. Total debt, including the current portion, was $2,496.0 million in senior notes at a weighted average interest rate of 3.64%, and the company had $327 million of unused revolver capacity net of letters of credit. Management expects third-quarter 2018 earnings, excluding special items, to be higher than second-quarter 2018, and expects 2018 capital investments of $530 million to $550 million. The company is converting the No. 3 paper machine at its Wallula, Washington mill to a virgin kraft linerboard machine, with the first phase completed in the second quarter and the second phase expected in the fourth quarter of 2018. The filing also discloses lawsuits related to the February 2017 DeRidder, Louisiana mill explosion, which the company is vigorously defending and expects to be covered by liability insurance subject to a $1.0 million aggregate deductible, and an ongoing EPA investigation.

    Aug 8, 2018
  26. 2018-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2018

    Packaging Corporation of America (PCA) reported first-quarter 2018 net sales of $1.69 billion, up from $1.54 billion in the first quarter of 2017, and net income of $140.1 million, or $1.48 per diluted share, compared with $117.4 million, or $1.24 per diluted share, a year earlier. Excluding special items, net income was $146.9 million, or $1.55 per diluted share, versus $119.6 million, or $1.27 per diluted share. Management attributed the improvement mainly to higher containerboard and corrugated products prices and mix, and higher Packaging and Paper volumes, partly offset by lower Paper prices and mix, higher operating costs, freight, annual outage expense, depreciation and interest expense. The effective tax rate fell to 24.9% from 34.5%, primarily due to federal tax reform. Packaging segment income from operations rose to $225 million from $193 million, while Paper segment income fell to $7 million from $28 million, including $9 million of Wallula mill restructuring charges tied to converting the No. 3 paper machine to kraft linerboard. Operating cash flow was $202.5 million, versus $164.1 million, and capital expenditures were $108.0 million. Cash fell to $102.4 million after the repayment of $150.0 million of 6.50% senior notes due March 2018. Management expects 2018 capital investments of $440 million to $460 million, including $134 million for the Wallula conversion, and expects second-quarter earnings excluding special items to be higher than the first quarter. The filing also discloses a February 2017 DeRidder, Louisiana mill incident that resulted in three contractor fatalities and multiple lawsuits, which the company is vigorously defending and believes are covered by liability insurance subject to a $1.0 million aggregate deductible. Office Depot accounted for approximately 45% of Paper segment sales in the quarter, and all of the company's debt carried fixed interest rates at March 31, 2018.

    May 9, 2018
  27. 2017-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2017

    Packaging Corporation of America (PCA) reported third-quarter 2017 net sales of $1.64 billion, up from $1.48 billion in the prior-year quarter, and net income of $139.1 million, or $1.47 per diluted share, compared with $119.3 million, or $1.26 per diluted share, a year earlier. Excluding special items, which totaled $27 million of pre-tax expense in the quarter (including $25 million of charges tied to the Wallula No. 3 paper machine conversion), net income was $158.8 million, or $1.68 per diluted share. Packaging segment income from operations rose to $261.5 million from $179.6 million, driven primarily by higher containerboard and corrugated products prices and mix and higher sales and production volumes, while the Paper segment swung to a loss of $0.7 million from income of $44.5 million. For the first nine months of 2017, net income was $399.7 million, or $4.23 per diluted share, versus $338.9 million, or $3.58 per diluted share, in the same period of 2016. Net cash provided by operating activities was $583.3 million, and cash and cash equivalents stood at $370.5 million at September 30, 2017. Total debt was roughly $2.6 billion, consisting of $1,647.7 million of fixed-rate senior notes and $977.6 million of variable-rate term loans, with the filing noting that about 63% of debt is fixed-rate. Looking ahead, the company said it expects fourth-quarter earnings excluding special items to be lower than third-quarter earnings, citing seasonally lower volumes, scheduled outages at four mills, and higher wood, energy and chemical costs. It completed the $265 million acquisition of Sacramento Container Corporation and related entities on October 2, 2017, funded with cash on hand, and plans to convert the Wallula No. 3 machine to a 400,000 ton-per-year virgin kraft linerboard machine at a total capital cost of approximately $150 million.

    Nov 3, 2017
  28. 2017-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2017

    Packaging Corporation of America (PCA) reported second-quarter 2017 net sales of $1.58 billion, up from $1.42 billion in the second quarter of 2016, and net income of $143.2 million, or $1.52 per diluted share, compared with $115.9 million, or $1.23 per diluted share, a year earlier. For the six months ended June 30, 2017, net sales were $3.12 billion and net income was $260.6 million, or $2.76 per diluted share. The company attributed the increase primarily to higher containerboard and corrugated products prices and mix and higher sales and production volumes, along with lower annual mill outage costs and lower taxes, partially offset by higher energy, fiber, labor and freight costs. The filing also notes a partial insurance recovery related to the February 2017 DeRidder Mill incident, which resulted in three contractor fatalities, and the company states it is unable to estimate a range of reasonable possible losses from that incident at this time. The balance sheet shows total assets of $5.90 billion at June 30, 2017, with long-term debt of $2.46 billion plus current maturities of $156.5 million, and stockholders' equity of $1.91 billion. Operating cash flow for the six months was $385.6 million, capital expenditures were $139.4 million, and dividends paid were $118.8 million. No shares were repurchased during the first half of 2017, compared with $100.3 million of repurchases in the same period of 2016. Management expects third-quarter 2017 earnings, excluding special items, to be higher than second-quarter earnings, citing expected higher containerboard and corrugated shipments and realization of previously announced price increases, and anticipates a higher tax rate, higher freight costs and continued inflation in recycled fiber and certain chemicals. Segment results show Packaging income from operations of $225 million in the quarter and Paper income from operations of $29 million. The company's Packaging segment benefited from the TimBar and Columbus Container acquisitions completed in 2016, and the filing states that the company's Office Depot concentration represents about 44% of Paper segment sales for the six months ended June 30, 2017.

    Aug 4, 2017
  29. 2017-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2017

    Packaging Corporation of America reported first-quarter 2017 net sales of $1.54 billion, up from $1.40 billion in the first quarter of 2016, and net income of $117.4 million, or $1.24 per diluted share, compared with $103.7 million, or $1.09 per diluted share, a year earlier. Excluding special items, net income was $119.6 million, or $1.27 per diluted share. The filing attributes the increase primarily to higher containerboard, corrugated products, and paper prices and mix, higher containerboard and corrugated products volumes (including the TimBar and Columbus Container acquisitions), and lower wood costs, partially offset by higher recycled fiber, energy, freight, and labor costs and higher depreciation and interest expense. Packaging segment income from operations rose to $190.8 million from $161.5 million, while Paper segment income fell to $29.8 million from $36.1 million. The company identified the February 8, 2017 explosion at its DeRidder, Louisiana mill, which resulted in three contractor fatalities. Management estimates property damage and business interruption losses reduced first-quarter earnings by approximately $15 million, or $0.10 per share, and currently estimates total losses of $20.0 to $25.0 million, subject to a $5.0 million insurance deductible. The company is cooperating with OSHA, the U.S. Chemical Safety Board, and the EPA, and has been served one lawsuit. For the second quarter, management expects earnings to be higher than first-quarter earnings, citing expected Packaging price increases and higher shipments, partially offset by scheduled outages at its three largest containerboard mills. Liquidity remained solid, with $254.0 million of cash and $327 million of unused revolving credit capacity at March 31, 2017. Operating cash flow was $164.1 million, and the company paid $59.4 million in dividends and repurchased no shares during the quarter, leaving $193.0 million available under its repurchase authorization. Total debt was roughly $2.6 billion, and the company expects 2017 capital expenditures of $310 million to $325 million.

    May 5, 2017
  30. 2016-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2016

    Packaging Corporation of America reported third-quarter 2016 net sales of $1.48 billion, up from $1.47 billion a year earlier, and net income of $119.3 million, or $1.26 per diluted share, compared with $127.8 million, or $1.31 per diluted share, in the third quarter of 2015. Management attributes the decline in income from operations to lower domestic containerboard and corrugated products prices and mix, partly offset by higher sales volumes, lower freight and energy costs, and a lower share count. Excluding special items, third-quarter net income was $123 million, or $1.30 per diluted share. For the first nine months of 2016, net income was $338.9 million, or $3.58 per diluted share, versus $332.6 million, or $3.39 per diluted share, in the prior-year period. The company's most significant balance sheet event was the August 29, 2016 acquisition of TimBar Corporation for $385.6 million net of cash acquired, funded by a new $385.0 million five-year term loan. Total assets rose to $5.75 billion from $5.27 billion at December 31, 2015, with goodwill increasing to $692.1 million. Net cash provided by operating activities was $588.2 million for the nine months, and long-term debt rose to $2.63 billion. Management expects fourth-quarter 2016 earnings to be lower than third-quarter earnings, and the company also agreed on October 11, 2016 to acquire Columbus Container, Inc. for $100 million in cash. The company also announced that it will cease softwood market pulp operations at its Wallula, Washington mill, shutting down the No. 1 machine with approximately 100,000 tons of pulp capacity effective December 1, 2016. The quarterly dividend was raised to $0.63 per share from $0.55, and the company repurchased $100.3 million of common stock during the first nine months of 2016 under its ongoing authorization.

    Nov 4, 2016
  31. 2016-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2016

    Packaging Corporation of America reported second-quarter 2016 net sales of $1,417.4 million, down from $1,454.3 million a year earlier, while net income rose to $115.9 million ($1.23 per diluted share) from $114.0 million ($1.16 per diluted share). Excluding special items, net income was $117.7 million, or $1.25 per diluted share, compared with $115.6 million, or $1.18 per diluted share, in the second quarter of 2015. For the first six months of 2016, net income was $219.6 million ($2.32 per diluted share) versus $204.8 million ($2.08 per diluted share) in 2015. The filing attributes earnings growth mainly to higher corrugated products volumes, lower energy, fiber and freight costs, and a lower share count from repurchases, partly offset by lower containerboard, corrugated products and white paper prices and mix. Cash flow from operations for the six months rose to $371.1 million from $304.5 million, and cash and cash equivalents ended the period at $213.6 million. The company repurchased $100.3 million of common stock in the first half and paid $104.9 million in dividends, with a $200.0 million repurchase authorization approved in February 2016 and $193.0 million remaining at quarter end. Total debt included $1,650.0 million of fixed-rate senior notes and $658.8 million of variable-rate term loans at June 30, 2016. A subsequent event is the July 1, 2016 agreement to acquire substantially all assets of TimBar Corporation for a cash purchase price of $386 million, expected to close in the third quarter of 2016 and to be financed with a new term loan. Management expects third-quarter 2016 earnings, excluding special items, to be higher than second-quarter earnings.

    Aug 5, 2016
  32. 2016-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2016

    Packaging Corporation of America (PCA) reported net sales of $1,401.0 million for the three months ended March 31, 2016, down from $1,425.7 million in the first quarter of 2015. Net income rose to $103.7 million, or $1.09 per diluted share, compared with $90.8 million, or $0.92 per diluted share, a year earlier. Excluding special items, the company reported net income of $106 million, or $1.11 per diluted share, versus $100 million, or $1.01 per diluted share, in the prior-year quarter. The filing attributes the earnings increase primarily to higher packaging volumes and lower maintenance, fiber, and energy costs, partially offset by lower prices and mix in white paper, containerboard, and corrugated products. Income from operations was $180.8 million, compared with $157.1 million, with the Packaging segment contributing $159.6 million and the Paper segment $36.1 million. Net cash provided by operating activities was $191.0 million, versus $108.3 million, while cash and cash equivalents fell to $162.3 million at March 31, 2016 from $184.2 million at year-end 2015. Cash returned to shareholders included $53.1 million in dividends and $100.3 million in share repurchases, and the Board authorized an additional $200.0 million repurchase program on February 25, 2016. The company expects second-quarter 2016 earnings, excluding special items, to be higher than first-quarter earnings, citing seasonally higher volumes, lower energy costs, and white paper price increases of $60 per ton that are expected to be realized mainly in the third quarter. The filing also notes that Office Depot represented approximately 9% of total company sales for the quarter, and that Office Depot's pending acquisition by Staples is subject to regulatory approval.

    May 6, 2016
  33. 2015-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2015

    Packaging Corporation of America reported third-quarter 2015 net income of $127.8 million, or $1.31 per diluted share, compared with $104.4 million, or $1.06 per diluted share, in the same period of 2014. Excluding special items, net income was $122.8 million, or $1.26 per diluted share, flat with $123.9 million, or $1.26 per diluted share, a year earlier. Net sales decreased $48.1 million, or 3%, to $1,470.8 million, while income from operations rose $31.0 million, or 16%, to $219.4 million, largely because of the prior-year DeRidder restructuring charges. The company attributes the flat underlying earnings to improved packaging volumes, stable corrugated pricing, and lower energy, chemical and repair costs, offset by lower white paper prices and mix, lower export containerboard prices and higher fiber costs. For the first nine months of 2015, net income was $332.6 million, or $3.39 per diluted share, versus $294.1 million, or $2.99 per diluted share, in 2014. Excluding special items, nine-month net income was $338.1 million, or $3.45 per diluted share, compared with $344.2 million, or $3.50 per diluted share. Operating cash flow was $542.0 million, and cash and cash equivalents rose to $186.9 million at September 30, 2015. Management expects fourth-quarter 2015 earnings excluding special items to be lower than third-quarter earnings, citing seasonally lower volumes and a 24-day outage at its Jackson, Alabama white papers mill. Capital expenditures are expected to be between $300 million and $315 million for 2015. During the nine months, the company repurchased $98.1 million of common stock, and its board authorized an additional $150 million repurchase program in July 2015, bringing the approximate remaining authority to $205 million. The quarterly dividend was raised to $0.55 per share from $0.40 per share beginning in April 2015.

    Nov 6, 2015
  34. 2015-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2015

    Packaging Corporation of America (PCA) reported second-quarter 2015 net income of $114.0 million, or $1.16 per diluted share, compared with $99.6 million, or $1.01 per diluted share, in second quarter 2014. Net sales were essentially flat at $1,454.3 million versus $1,468.4 million, a decrease of $14.1 million, or 1%. Excluding special items, net income was $115.6 million, or $1.18 per diluted share. For the first half of 2015, net income was $204.8 million, or $2.08 per diluted share, compared with $189.6 million, or $1.93 per diluted share, a year earlier. The Packaging segment drove the improvement. Packaging EBITDA rose to $266.7 million in the second quarter from $253.8 million, on higher volumes, lower energy costs, and increased containerboard output from the converted No. 3 machine at the DeRidder, Louisiana, mill. The Paper segment weakened, with second-quarter EBITDA of $37.1 million versus $45.9 million, due mainly to lower white paper prices. Management expects third-quarter earnings excluding special items to be higher than second-quarter levels, despite a planned 13-day outage at DeRidder in September. Cash generation and shareholder returns remained central to the story. Operating cash flow for the six months was $304.5 million, versus $334.1 million a year earlier. The quarterly dividend was raised to $0.55 per share from $0.40, and the company repurchased $43.3 million of stock in the first half. In July 2015, the board authorized an additional $150 million of repurchases, bringing available authority to approximately $205 million. Cash at June 30, 2015 was $163.7 million, with $326.5 million of unused revolver capacity.

    Aug 7, 2015
  35. 2015-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2015

    Packaging Corporation of America (PCA) reported first quarter 2015 net sales of $1,425.7 million, compared with $1,431.3 million in the first quarter of 2014, a decrease of $5.6 million, or 0.4%. Net income was $90.8 million, or $0.92 per diluted share, versus $90.1 million, or $0.92 per diluted share, a year earlier. Excluding special items, net income was $99.6 million, or $1.01 per diluted share, compared with $106.5 million, or $1.08 per diluted share, in 2014. Income from operations rose to $157.1 million from $160.9 million, with the decline driven by the Packaging segment, where segment income fell $29.6 million to $141.1 million on an extended annual outage at the DeRidder mill, higher employee-related costs, freight, and fiber costs, and lower export containerboard prices. The Paper segment improved, with segment income up $7.9 million to $35.6 million. Cash generation weakened in the quarter. Net cash provided by operating activities was $108.3 million, down $41.0 million from $149.3 million, mainly due to changes in operating assets and liabilities. Capital expenditures were $55.6 million, and the company expects 2015 capital investments of $275 million to $300 million. Cash and cash equivalents stood at $126.4 million at March 31, 2015, and the company had $326.5 million of unused revolver capacity. The Board raised the quarterly dividend to $0.55 per share from $0.40 a year earlier, and the company expects second-quarter 2015 earnings excluding special items to be slightly higher than the first quarter. Subsequent events include the April 1, 2015 sale of the Hexacomb corrugated operations in Europe and Mexico for $23 million, and a April 14, 2015 thunderstorm-related outage at the Jackson, Alabama, white papers mill, which damaged the No. 1 paper machine's steam turbine drive. That machine was down about two weeks, and the cost is expected to be covered by insurance subject to a $3 million deductible.

    May 8, 2015
  36. 2014-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2014

    Packaging Corporation of America (PCA) reported third-quarter 2014 net sales of $1,518.9 million, up from $845.4 million a year earlier, with net income of $104.4 million, or $1.06 per diluted share, versus $84.7 million, or $0.87 per diluted share, in the prior-year quarter. The filing states that the increase reflects a full quarter of Boise operations, acquired on October 25, 2013, which contributed $628.9 million of the sales increase. Results were burdened by $29.0 million of pre-tax special items in the quarter, including $26.0 million of DeRidder mill restructuring charges. Excluding special items, net income was $123.9 million, or $1.26 per diluted share. For the first nine months of 2014, net sales were $4,418.7 million and net income was $294.1 million, or $2.99 per diluted share, with special items excluding $344.2 million of net income, or $3.50 per diluted share. The balance sheet expanded materially after the Boise acquisition. Total assets were $5,330.7 million at September 30, 2014, and long-term debt was $2,350.5 million. During the nine months, the company issued $400.0 million of 3.65% senior notes due 2024 and used the proceeds, along with operating cash, to repay $589.9 million of debt. Cash and cash equivalents were $154.3 million, and operating cash flow for the nine months was $556.7 million. Management expects fourth-quarter 2014 earnings, excluding special items, to be lower than third-quarter results, citing fewer shipping days and seasonal demand slowdowns. The filing also notes completion of the No. 3 newsprint machine conversion at the DeRidder, Louisiana, mill on October 17, 2014, and a $17.6 million settlement of the Kleen Products antitrust class action. For investors, the key themes are the scale added by Boise, the higher interest burden and debt refinancing, and the pressure from restructuring and integration costs. Capital investments for 2014 are expected to total about $410 million, including the DeRidder conversion and Boise synergy projects.

    Nov 7, 2014
  37. 2014-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2014

    Packaging Corporation of America reported sharply higher second-quarter 2014 results following its October 25, 2013 acquisition of Boise Inc. Net sales for the three months ended June 30, 2014 were $1,468.4 million, up from $800.2 million a year earlier, and net income was $99.6 million, or $1.01 per diluted share, compared with $66.3 million, or $0.68 per diluted share. Excluding special items, net income was $113.8 million, or $1.16 per diluted share. For the six months, net sales were $2,899.7 million and diluted EPS was $1.93, or $2.24 excluding special items. The filing attributes the increase primarily to a full period of Boise operations, and it lists special items including DeRidder restructuring charges, integration-related costs, and a $17.6 million settlement of the Kleen Products class action lawsuit. The balance sheet and cash flow picture reflects the Boise transaction and debt repayment. Cash and cash equivalents were $161,991 thousand at June 30, 2014, and long-term debt was $2,425,441 thousand. Net cash provided by operating activities was $334.1 million for the six months, while capital expenditures were $148.2 million and debt principal payments totaled $116.0 million. Management expects third-quarter 2014 earnings, excluding special items, to be higher than second-quarter earnings, citing higher volumes, Boise synergies, and less scheduled mill maintenance downtime, partly offset by higher depreciation and other costs. The company also disclosed that the DeRidder Number 3 newsprint machine is being converted to lightweight linerboard and corrugating medium, with startup expected by November 1, 2014, and that it expects total 2014 capital investments of about $400 million. Its paper segment remains concentrated with Office Depot (including OfficeMax), which represented 9% of total company sales in both the three and six months ended June 30, 2014.

    Aug 8, 2014
  38. 2014-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2014

    Packaging Corporation of America reported first-quarter 2014 net sales of $1,431.3 million, up from $755.2 million in the first quarter of 2013, driven mainly by a full quarter of operations from Boise Inc., which PCA acquired on October 25, 2013 for $2.1 billion including assumed debt. Net income was $90.1 million, or $0.92 per diluted share, compared with $62.3 million, or $0.64 per share, a year earlier. Excluding $25.7 million of pre-tax special items, net income was $106.5 million, or $1.08 per diluted share. The special items were a $17.6 million accrual to settle the Kleen Products class action, $4.1 million of integration-related costs, and $4.0 million of DeRidder restructuring charges. The company said extreme weather in the quarter reduced earnings by about $0.06 per share, with another $0.03 per share capitalized in inventory. Cash flow from operations was $149.3 million, compared with $95.8 million in the prior-year quarter. Capital expenditures were $50.9 million, and PCA expects 2014 capital investments of about $400 million, including about $100 million for converting the Number 3 newsprint machine at its DeRidder, Louisiana, mill to containerboard production. Total debt repayments were $66.0 million in the quarter. The company held $185.7 million of cash and $328.5 million of unused revolving credit capacity at March 31, 2014. Management expects second-quarter earnings excluding special items to be comparable to first-quarter earnings excluding special items, citing scheduled maintenance outages at three mills and a higher tax rate. The Paper segment, which includes the white paper mills acquired from Boise, contributed $309.3 million of sales and $27.7 million of segment operating income. OfficeMax, now a subsidiary of Office Depot, accounted for 42% of Paper segment sales revenue in the quarter. PCA also completed the $21.2 million acquisition of Crockett Packaging's assets on April 28, 2014, after the quarter ended.

    May 8, 2014
  39. 2013-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2013

    Packaging Corporation of America (PCA) reported third-quarter 2013 net sales of $845.4 million, up $122.0 million, or 16.9%, from $723.5 million a year earlier, and net income of $84.2 million ($0.86 per diluted share) versus $39.8 million ($0.41) in the prior-year quarter. Income from operations rose to $142.0 million from $92.1 million. Excluding special items (a $3.1 million pension curtailment charge and $1.5 million of Boise acquisition costs in operations, plus related after-tax items), net income was $89.0 million ($0.91 per diluted share). Management attributed the improvement mainly to higher sales price and improved mix ($68.9 million) and higher corrugated products volume, partly offset by higher incentive compensation, labor, fiber, and energy costs. For the nine months, net sales were $2.40 billion and net income was $209.3 million, with operating cash flow of $420.2 million. The most significant event in the filing is the October 25, 2013 completion of the acquisition of Boise Inc. for $12.55 per share, with a total transaction value, net of cash acquired, of approximately $1.94 billion including $775.0 million of Boise indebtedness. PCA financed the deal with about $2.0 billion of new borrowings, including $1.3 billion of term loans and $700.0 million of 4.50% ten-year notes. The company states that its containerboard capacity is expected to rise to about 3.7 million tons from 2.6 million tons, and that corrugated products volume will increase by about 30%. Management also states that its debt, which was $807.6 million including capital leases at the end of the third quarter, rose to approximately $2.7 billion after the acquisition, and that fourth-quarter earnings are expected to be lower than the third quarter, excluding the Boise impact. At September 30, 2013, cash and cash equivalents were $396.6 million and total stockholders' equity was $1.10 billion. The filing reports that the company was in compliance with its debt covenants and that it had no material changes in its environmental reserve of $12.2 million. Investors should note that the company's pending exposure to a reserve for unrecognized tax benefits tied to alternative energy tax credits could change by between $0 and $105.0 million by the end of 2013, and that the Kleen Products antitrust class action remains pending with no estimable range of loss.

    Nov 8, 2013
  40. 2013-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2013

    Packaging Corporation of America (PCA) reported net income of $64.5 million, or $0.66 per diluted share, for the three months ended June 30, 2013, up from $45.2 million, or $0.46 per diluted share, a year earlier. Net sales rose $87.8 million, or 12.3%, to $800.2 million, driven by higher sales price and mix ($41.3 million) and higher sales volume ($46.5 million). Income from operations increased $23.4 million, or 27.9%, to $107.3 million, despite a $7.8 million pre-tax pension curtailment charge tied to the USW master labor agreement, which froze pension accruals for certain corrugated plant employees. Excluding that charge, the company reported net income of $69.5 million, or $0.71 per diluted share. For the six months ended June 30, 2013, net income was $125.1 million, or $1.28 per diluted share, compared with $63.0 million, or $0.65 per diluted share, in the prior-year period. The comparison was affected by a $95.5 million income benefit from alternative fuel mixture credits and a $118.5 million tax charge recorded in the first half of 2012. Net cash provided by operating activities rose to $283.0 million from $150.0 million. As of June 30, 2013, cash and cash equivalents stood at $370.1 million, total debt was $786.5 million, and the company had $329.0 million in unused borrowing capacity. Management expects third-quarter 2013 earnings to be higher than second-quarter earnings, citing higher corrugated products prices, higher sales volume, no planned annual outages, and increased mill production, partly offset by higher electricity costs, higher outage repair amortization, and a higher tax rate. The filing also notes that the IRS audit of the company's alternative energy tax credits is expected to result in a change in the related tax reserve of between $0 and $105.0 million by the end of 2013, and that a containerboard antitrust class action (Kleen Products) remains pending.

    Aug 6, 2013
  41. 2013-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2013

    Packaging Corporation of America (PCA) reported net income of $60.6 million ($0.62 per diluted share) for the first quarter ended March 31, 2013, compared with $17.8 million ($0.18 per diluted share) in the first quarter of 2012. Net sales rose $83.9 million, or 12.5%, to $755.2 million, driven by higher sales prices ($34.6 million) and volumes ($49.3 million). The comparison is distorted by the prior year's $95.5 million of alternative fuel mixture credit income and a $118.5 million tax charge tied to amending the 2009 federal tax return. Excluding special items, the prior-year net income was $40.8 million ($0.42 per diluted share), so the underlying improvement is substantial. Income from operations was $103.2 million, versus $73.6 million excluding special items in the prior-year period. The company stated that no special items affected first quarter 2013 results. Cash generation strengthened, with operating cash flow of $95.8 million versus $34.9 million a year earlier. Cash and cash equivalents increased to $268.0 million at March 31, 2013, and the company had $329.0 million of unused borrowing capacity under its credit facilities. Total long-term debt and current maturities were $789.9 million, and stockholders' equity was $1.00 billion. The company repurchased 121,263 shares for $5.1 million during the quarter and declared dividends of $0.3125 per share. Management expects second quarter earnings to be comparable to the first quarter, citing seasonally stronger volume and higher prices offset by mill maintenance outages and higher transportation, recycled fiber and purchased electricity costs. The filing also flags a significant pending tax matter. The IRS is auditing the 2008 and 2009 returns, and the company expects the reserve for unrecognized tax benefits related to Filer City alternative energy credits to change significantly by the end of 2013, with an estimated change between $0 and $105.0 million. The company also remains a defendant in the Kleen Products containerboard antitrust class action, for which it cannot predict the outcome or estimate a loss range.

    May 1, 2013
  42. 2012-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2012

    Packaging Corporation of America (PCA) reported third-quarter 2012 net sales of $723.5 million, up from $670.8 million a year earlier, and net income of $39.8 million ($0.41 per diluted share), compared with $41.8 million ($0.42 per diluted share) in the third quarter of 2011. Income from operations rose to $92.1 million from $71.2 million. Results were weighed down by $21.1 million of pre-tax debt refinancing charges tied to the early redemption of the 5.75% senior notes due 2013. Excluding special items, the company reported net income of $53.3 million ($0.55 per diluted share). Shipments-per-workday of corrugated products rose 5.7%, and containerboard volume sold to domestic and export customers rose 6.6%, with energy, chemicals and recycled fiber costs lower than a year earlier. For the nine months ended September 30, 2012, net sales were $2.11 billion and net income was $102.8 million, which includes a $95.5 million pre-tax gain from amending the 2009 federal tax return to reallocate alternative fuel mixture credits, offset by $118.5 million of reduced tax benefits and a net after-tax charge of $23.0 million. Management expects fourth-quarter 2012 earnings to exceed third-quarter earnings, reflecting a $50 per ton containerboard price increase and a corresponding corrugated products price increase. Cash and cash equivalents stood at $140.9 million, and long-term debt and current maturities totaled $797.4 million at September 30, 2012. The company also refinanced its $400.0 million 5.75% notes with new 3.90% senior notes due 2022, and it had $327.7 million of unused borrowing capacity. Key risks include a pending class action (Kleen Products) alleging containerboard price-fixing, which the company says it is unable to predict the outcome of, and an IRS review of its cellulosic biofuel producer credits, under which as much as $78.7 million of alternative energy tax credits may be subject to challenge.

    Nov 6, 2012
  43. 2012-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2012

    Packaging Corporation of America (PCA) reported second-quarter 2012 net sales of $712.5 million, up from $665.5 million in the second quarter of 2011, with net income of $45.2 million ($0.46 per diluted share) compared with $39.4 million ($0.39 per diluted share). Income from operations rose to $83.9 million from $67.9 million, driven by higher sales volume and lower energy, chemical, repair and recycled fiber costs. For the six months ended June 30, 2012, net sales were $1.38 billion and net income was $63.0 million, but results were distorted by a $95.5 million pre-tax gain in alternative fuel mixture credits and a $118.5 million reduction in tax benefits from an amended 2009 federal tax return, which together produced a non-cash, after-tax charge of $23.0 million. Excluding special items, six-month diluted EPS was $0.91 versus $0.78 a year earlier. The company's balance sheet and liquidity changed significantly in the quarter. PCA issued $400.0 million of 3.90% senior notes due 2022 on June 26, 2012, and used the proceeds and cash on hand to redeem its $400.0 million of 5.75% senior notes due 2013 on July 26, 2012 for $432.5 million, including a $21.3 million redemption premium. Cash and cash equivalents rose to $515.1 million at June 30, 2012 from $156.3 million at year-end 2011, and the company reported $327.7 million of unused borrowing capacity. Management expects third-quarter earnings, excluding debt refinancing charges and special items, to be higher than second-quarter 2012, citing seasonally higher volumes and lower mill costs. The company also disclosed an ongoing Sherman Act class action (Kleen Products LLC v Packaging Corp. of America et al.) alleging containerboard price fixing, which PCA says is without merit and which it is defending. It also disclosed that the IRS is reviewing its 2009 cellulosic biofuel producer credits, and that it had up to $100.5 million of alternative energy tax credits available to offset future tax payments.

    Aug 7, 2012
  44. 2012-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2012

    Packaging Corporation of America (PCA) reported net income of $17.8 million, or $0.18 per diluted share, for the three months ended March 31, 2012, compared with $37.4 million, or $0.37 per diluted share, in the same period of 2011. Net sales rose $41.9 million to $671.4 million, driven mainly by higher sales volumes ($48.8 million), partly offset by lower export pricing ($6.9 million). Income from operations was $169.1 million, but this included $95.5 million of alternative fuel mixture credit income from amending the 2009 federal tax return. That amendment also reduced cellulosic biofuel producer tax benefits by $118.5 million, creating a net non-cash, after-tax charge of $23.0 million. Excluding this item, the company reported net income of $40.8 million, or $0.42 per diluted share, versus $39.5 million, or $0.39 per diluted share, a year earlier. Cash flow from operations declined to $34.9 million from $64.0 million, reflecting higher operating asset and liability requirements. Cash and cash equivalents fell to $84.0 million at March 31, 2012. PCA completed a $35.5 million acquisition of Packaging Specialists in March 2012, and it received $57.4 million in U.S. Treasury grant proceeds in April 2012. The board raised the quarterly dividend from $0.20 to $0.25 per share, and the company completed its $100.0 million repurchase program while $127.8 million remained available under a $150.0 million authorization. Management expects second-quarter earnings, excluding special items, to be higher than the first quarter, despite about $0.03 per share of estimated maintenance outage impact. The filing also notes a pending Kleen Products antitrust class action alleging containerboard price-fixing, which PCA says is in early discovery with an outcome that cannot yet be predicted. PCA also disclosed that it had $326.7 million of unused borrowing capacity at quarter end and was in compliance with its debt covenants.

    May 8, 2012
  45. 2011-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2011

    Packaging Corporation of America reported third-quarter 2011 net income of $41.8 million ($0.42 per diluted share), compared with $93.3 million ($0.91 per diluted share) in the third quarter of 2010. That prior-year period included $111.9 million reversed from alternative fuel mixture credits, which reduced operating income and was offset by a $145.3 million tax benefit from cellulosic biofuel producer credits. Net sales rose $28.1 million to $670.8 million, driven by higher volumes, while gross profit fell $28.7 million to $137.7 million as costs for transportation, recycled fiber, energy, labor and chemicals increased. Excluding special items, the company said it earned $42.8 million ($0.43 per diluted share) in the quarter and expects fourth-quarter earnings excluding special items to be lower than the third quarter. For the nine months ended September 30, 2011, net sales were $1.97 billion, up $156.9 million, and net income was $118.6 million versus $150.5 million a year earlier. Cash from operating activities was $236.8 million. The company repurchased $93.4 million of common stock during the nine months and ended the period with cash of $40.1 million. In October 2011 it replaced its senior revolving credit facility with a $150 million term loan, fully drawn, and a $250 million revolver, and extended its receivables facility to October 2014 with borrowing availability raised to $200.0 million. The filing also discloses an IRS review of cellulosic biofuel producer credits claimed for 2009, a pending class action alleging containerboard price-fixing that the company is defending, and an April 2011 fire at its Valdosta, Georgia mill that caused production losses of 11,000 tons. Capital expenditures for 2011 are expected to total $265.0 million, including $115.0 million for major energy optimization projects at the Counce and Valdosta mills.

    Nov 3, 2011
  46. 2011-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2011

    Packaging Corporation of America (PKG) reported net income of $39.4 million ($0.39 per diluted share) for the three months ended June 30, 2011, up from $38.0 million ($0.37 per diluted share) a year earlier. Net sales rose $50.0 million, or 8.1%, to $665.5 million, driven primarily by higher sales volumes ($35.9 million) and increased sales prices ($14.1 million). For the six months ended June 30, 2011, net income was $76.8 million ($0.76 per diluted share) on net sales of $1.29 billion, compared with $57.2 million ($0.56 per diluted share) in the prior-year period, which included a $9.2 million alternative fuel mixture tax credit benefit. Excluding special items, second-quarter net income was $39.6 million ($0.39 per diluted share) versus $39.1 million ($0.38 per diluted share) in the second quarter of 2010. Gross profit as a percentage of net sales declined to 20.6% in the second quarter from 21.4% a year earlier, attributed to per-unit cost increases for chemicals, transportation, labor, energy and recycled fiber. Cash flow from operations improved to $165.2 million for the six months, from $108.6 million, and the company spent $145.2 million on capital expenditures, with $260.0 million planned for 2011, including $115.0 million for major energy optimization projects at its Counce and Valdosta mills. Cash and cash equivalents fell to $119.2 million at June 30, 2011, and the company completed its $150.0 million repurchase program during the second quarter, with $80.7 million remaining under a later $100.0 million authorization. The filing also flags risks, including an IRS review of the company's cellulosic biofuel producer tax credits claimed for 2009, a pending antitrust class action (Kleen Products LLC v Packaging Corp. of America et al.) that the company is unable to predict or estimate, and Boiler MACT regulations that could require significant boiler modifications with timing and cost still uncertain. Management expects third-quarter earnings excluding special items to exceed second-quarter levels.

    Aug 4, 2011
  47. 2011-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2011

    Packaging Corporation of America reported net income of $37.4 million, or $0.37 per diluted share, for the three months ended March 31, 2011, compared with $19.2 million, or $0.19 per diluted share, in the first quarter of 2010. Net sales rose to $629.5 million from $550.7 million, an increase of $78.8 million, or 14.3%, driven mainly by higher sales prices ($58.0 million) and higher volumes ($20.8 million). Income from operations was $65.9 million versus $33.6 million a year earlier. Excluding special items, which in the current quarter were asset disposal and facility closure charges and in the prior-year quarter included a $9.2 million alternative fuel mixture tax credit, net income was $39.5 million ($0.39 per diluted share) compared with $12.5 million ($0.12 per diluted share). Cash flow and liquidity improved. Net cash provided by operating activities was $64.0 million versus $14.5 million, while capital expenditures totaled $64.7 million in the quarter. The company spent $19.1 million repurchasing stock, received $9.9 million from settling treasury locks, and had $172.2 million of unused borrowing capacity at quarter end. The Board raised the quarterly dividend from $0.15 to $0.20 per share, starting with the April 15, 2011 payment. Management expects second-quarter earnings, excluding special items, to be lower than the first quarter due to increased planned mill downtime and inflationary cost pressures. Risks noted in the filing include a containerboard antitrust class action (Kleen Products LLC v. Packaging Corp. of America et al.), which the company is defending and for which it cannot estimate a range of losses, and a pending IRS review of the 2009 cellulosic biofuel producer tax credits, which the company has claimed. Contingent tax credits of up to $206.1 million remain available to offset future federal taxes, and the company has a $102.0 million reserve for uncertain tax positions tied to these credits.

    May 10, 2011
  48. 2010-Q3

    Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2010

    Packaging Corporation of America (PKG) reported a sharply mixed third quarter of 2010. Net sales rose to $642.8 million from $553.6 million, and net income was $93.3 million ($0.91 diluted EPS) versus $72.7 million ($0.71) a year earlier. However, operating results were distorted by alternative fuel mixture tax credits: the company recorded a charge of $111.9 million in other expense, net, after reallocating 2009 gallons of black liquor to the cellulosic biofuel producer credit, which is recorded as a $145.8 million benefit in the provision for income taxes. As a result, the company posted a loss from operations of $(12.3) million for the quarter versus income of $96.3 million in the prior-year quarter. Excluding these tax credits and related special items, the company states that net income was $61.7 million ($0.60 per diluted share) compared with $25.3 million ($0.25 per diluted share) in the third quarter of 2009. For the nine months, net sales were $1.81 billion versus $1.62 billion, and net income was $150.5 million ($1.46 diluted EPS) versus $207.2 million ($2.03). Excluding special items, nine-month net income was $113.3 million ($1.10 per diluted share) versus $79.7 million ($0.78). Operating cash flow was $211.0 million, while investing outflows of $231.7 million were driven by $230.9 million in capital expenditures, including energy optimization projects at the Counce and Valdosta mills. Cash fell to $172.8 million from $260.7 million at year-end 2009. The company repurchased $24.8 million of stock during the nine months and stated it had $36.8 million remaining under its $150.0 million authorization. Management expects fourth-quarter earnings, excluding special items, to be lower than the third quarter due to seasonally lower volumes, three fewer shipping days, and higher wood, energy and recycled fiber costs. The filing also discloses five purported class action lawsuits filed in September and October 2010 against PCA and eight other containerboard producers, alleging Sherman Act violations and seeking treble damages; the company says the allegations are without merit.

    Nov 3, 2010
  49. 2010-Q2

    Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2010

    Packaging Corporation of America (PCA) reported second-quarter 2010 net sales of $615.5 million, up $66.1 million, or 12.0%, from $549.4 million a year earlier, driven by higher sales volume ($47.2 million) and higher prices ($18.9 million) for corrugated products and containerboard. However, net income fell to $38.0 million from $108.9 million, because the prior-year quarter included $79.7 million of alternative fuel mixture tax credits income that was not available in 2010. Excluding those credits and energy project asset disposals, the company says income from operations increased $13.4 million, or 23.9%, versus the second quarter of 2009. For the six months ended June 30, 2010, net sales rose $104.4 million, or 9.8%, to $1.17 billion, while net income declined to $57.2 million from $134.6 million. Net cash provided by operating activities fell $32.7 million, or 23.1%, to $108.6 million, and capital expenditures were $155.3 million year to date, reflecting major energy optimization projects at the Counce and Valdosta mills. Management states that it expects third-quarter 2010 earnings to be significantly higher than the second quarter, citing a full quarter of the price increase, higher volumes and lower fiber and fuel costs. The balance sheet shows cash and equivalents of $181.5 million, a $109.0 million receivables credit facility balance, and $400.0 million of 5.75% senior notes due 2013. The company repurchased 150,000 shares for $3.1 million in the quarter, leaving $61.9 million under its $150.0 million authorization. A pending IRS determination that black liquor qualifies for a cellulosic bio-fuel credit of $1.01 per gallon could affect the company's 2009 tax credit claim, and a $96.0 million alternative fuel mixture tax credit receivable remains on the balance sheet.

    Aug 4, 2010
  50. 2010-Q1

    Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2010

    Packaging Corporation of America reported net income of $19.2 million, or $0.19 per diluted share, for the three months ended March 31, 2010, down from $25.7 million, or $0.25 per diluted share, in the same period of 2009. Net sales rose $38.4 million, or 7.5%, to $550.7 million, driven by higher sales volume ($81.0 million) that was partly offset by lower sales prices ($42.6 million). Income from operations fell $16.0 million, or 32.2%, to $33.6 million, primarily due to lower sales prices, increased fiber costs ($15.7 million), and charges related to the Ackerman, Mississippi facility closure and asset disposals. The results include $9.2 million of alternative fuel mixture tax credit income generated in 2009, which the company released as a reserve during the quarter. Cash flow weakened, with net cash from operating activities falling $36.2 million, or 71.4%, to $14.5 million, largely due to higher accounts receivable and lower net income. Investing outflows rose to $64.3 million as capital spending increased for major energy optimization projects at the Counce and Valdosta mills. Cash and cash equivalents declined to $197.6 million from $260.7 million at December 31, 2009. The company expects 2010 capital expenditures of about $300.0 million, and management expects second-quarter 2010 earnings to be significantly higher than the first quarter, citing the full realization of first-quarter price increases. Liquidity remains adequate according to management, with $172.2 million of unused borrowing capacity, $659.0 million of total debt outstanding, and compliance with covenants as of March 31, 2010. The company renewed its $150.0 million receivables-backed credit facility on April 14, 2010, extending it to March 1, 2011.

    May 5, 2010