10.21.14
Graphic Packaging Holding Company reported net income for third quarter 2014 of $53.0 million, or $0.16 per share, based upon 330.6 million weighted average diluted shares. This compares to third quarter 2013 net income of $44.5 million, or $0.13 per share, based on 352.2 million weighted average diluted shares.
“We reported a record adjusted EBITDA margin this quarter of just over 18%,” said CEO David Scheible. “This represented a three percentage point increase over the third quarter last year. The significant jump was primarily driven by our decision to exit non-core, lower margin businesses over the last year and to re-focus these resources around our paperboard packaging business. The divestitures truly transformed us into a pure play, vertically integrated paperboard packaging business.
“We also performed quite well in what continues to be a difficult operating environment, as demand in some of our key end use markets remains sluggish,” Scheible added. “Performance was strong across the business, as key operating metrics at both our mills and converting plants were up over last year. The integration of our acquisitions in Europe is also on target and we are realizing the planned synergies. Overall, we delivered a solid $22 million net benefit from performance initiatives in the quarter which keeps us on track to achieve our previously guided $60 million of benefits for the full year. We also remain on target to deliver $350 million of net debt reduction from operations in 2014, having achieved approximately $140 million in the third quarter.”
Net sales decreased 9.7% to $1,050.0 million in the third quarter of 2014, compared to $1,163.0 million in the prior year period. Excluding $162.3 million of sales in the prior year period from divested businesses, net sales increased $49.3 million or 4.9%. The increase was driven by $28.0 million of improved volume/mix, $19.1 million of higher pricing and $2.2 million of favorable exchange rates.
Given the June 30, 2014 sale of the company’s Multi-wall Bag Business, beginning with the third quarter 2014, the company will be reporting financial results under a single segment called Paperboard Packaging.
EBITDA for third quarter 2014 was $182.3 million, or $6.5 million lower than the third quarter of last year. When adjusting for special charges, adjusted EBITDA increased 8.8% to $190.6 million in third quarter 2014 from $175.2 million in third quarter 2013. When comparing against the prior year quarter. Total net debt at the end of third quarter 2014 was $2,024.0 million, $177.4 million lower than at the end of 2013.
“We reported a record adjusted EBITDA margin this quarter of just over 18%,” said CEO David Scheible. “This represented a three percentage point increase over the third quarter last year. The significant jump was primarily driven by our decision to exit non-core, lower margin businesses over the last year and to re-focus these resources around our paperboard packaging business. The divestitures truly transformed us into a pure play, vertically integrated paperboard packaging business.
“We also performed quite well in what continues to be a difficult operating environment, as demand in some of our key end use markets remains sluggish,” Scheible added. “Performance was strong across the business, as key operating metrics at both our mills and converting plants were up over last year. The integration of our acquisitions in Europe is also on target and we are realizing the planned synergies. Overall, we delivered a solid $22 million net benefit from performance initiatives in the quarter which keeps us on track to achieve our previously guided $60 million of benefits for the full year. We also remain on target to deliver $350 million of net debt reduction from operations in 2014, having achieved approximately $140 million in the third quarter.”
Net sales decreased 9.7% to $1,050.0 million in the third quarter of 2014, compared to $1,163.0 million in the prior year period. Excluding $162.3 million of sales in the prior year period from divested businesses, net sales increased $49.3 million or 4.9%. The increase was driven by $28.0 million of improved volume/mix, $19.1 million of higher pricing and $2.2 million of favorable exchange rates.
Given the June 30, 2014 sale of the company’s Multi-wall Bag Business, beginning with the third quarter 2014, the company will be reporting financial results under a single segment called Paperboard Packaging.
EBITDA for third quarter 2014 was $182.3 million, or $6.5 million lower than the third quarter of last year. When adjusting for special charges, adjusted EBITDA increased 8.8% to $190.6 million in third quarter 2014 from $175.2 million in third quarter 2013. When comparing against the prior year quarter. Total net debt at the end of third quarter 2014 was $2,024.0 million, $177.4 million lower than at the end of 2013.