Packaging Corporation of America Reports Third Quarter 2024 Results
Packaging of America (NYSE: PKG) reported third quarter 2024 net income of $238 million, or $2.64 per share. Excluding special items, net income was $239 million, or $2.65 per share. Third quarter net sales were $2.2 billion in 2024, up from $1.9 billion in 2023.
Key highlights:
- Earnings increased $0.60 per share compared to Q3 2023, driven by higher volume and prices in the Packaging segment
- Corrugated products shipments per day were up 11.1% over Q3 2023
- Containerboard production reached 1,293,000 tons
- Paper segment sales volume increased 4% versus Q3 2023
The company expects Q4 earnings of $2.47 per share, with continued strong demand in the Packaging segment but lower shipments in the Paper segment.
Packaging of America (NYSE: PKG) ha riportato un reddito netto del terzo trimestre 2024 di 238 milioni di dollari, ovvero 2,64 dollari per azione. Escludendo voci straordinarie, il reddito netto è stato di 239 milioni di dollari, pari a 2,65 dollari per azione. Le vendite nette del terzo trimestre sono state di 2,2 miliardi di dollari nel 2024, in aumento rispetto a 1,9 miliardi di dollari nel 2023.
Principali punti salienti:
- Gli utili sono aumentati di 0,60 dollari per azione rispetto al Q3 2023, grazie a un volume e prezzi più elevati nel segmento Packaging
- Le spedizioni di prodotti in cartone ondulato al giorno sono aumentate dell'11,1% rispetto al Q3 2023
- La produzione di cartone per container ha raggiunto 1.293.000 tonnellate
- Il volume delle vendite del segmento carta è aumentato del 4% rispetto al Q3 2023
L'azienda prevede guadagni nel Q4 di 2,47 dollari per azione, con una continua forte domanda nel segmento Packaging, ma spedizioni inferiori nel segmento carta.
Packaging of America (NYSE: PKG) reportó ingresos netos del tercer trimestre de 2024 de 238 millones de dólares, o 2,64 dólares por acción. Excluyendo elementos especiales, los ingresos netos fueron de 239 millones de dólares, o 2,65 dólares por acción. Las ventas netas del tercer trimestre fueron de 2,2 mil millones de dólares en 2024, en comparación con 1,9 mil millones de dólares en 2023.
Aspectos destacados:
- Las ganancias aumentaron 0,60 dólares por acción en comparación con el Q3 2023, impulsadas por un mayor volumen y precios en el segmento de embalaje
- Los envíos de productos de cartón ondulado por día aumentaron un 11,1% en comparación con el Q3 2023
- La producción de cartón para contenedores alcanzó 1,293,000 toneladas
- El volumen de ventas del segmento papel aumentó un 4% en comparación con el Q3 2023
La empresa espera ganancias en el Q4 de 2,47 dólares por acción, con una demanda aún fuerte en el segmento de embalaje, pero menores envíos en el segmento de papel.
Packaging of America (NYSE: PKG)는 2024년 3분기 순이익이 2억 3천8백만 달러, 주당 2.64달러로 보고했습니다. 특별 항목을 제외하면 순이익은 2억 3천9백만 달러, 주당 2.65달러였습니다. 2024년 3분기 순매출은 22억 달러로 2023년 19억 달러에서 증가했습니다.
주요 하이라이트:
- 수익은 2023년 3분기 대비 주당 0.60달러 증가하였으며, 이는 포장 부문의 증가된 물량과 가격 덕분입니다
- 골판지 제품의 일일 출하량은 2023년 3분기 대비 11.1% 증가했습니다
- 컨테이너 보드 생산량은 1,293,000톤에 달했습니다
- 종이 부문 판매량은 2023년 3분기 대비 4% 증가했습니다
회사는 포장 부문에서 지속적으로 강한 수요를 보이지만 종이 부문에서는 출하량이 줄어들 것으로 예상하며 Q4에 주당 2.47달러의 수익을 기대하고 있습니다.
Packaging of America (NYSE: PKG) a annoncé un revenu net de 238 millions de dollars au troisième trimestre 2024, soit 2,64 dollars par action. En excluant les éléments exceptionnels, le revenu net était de 239 millions de dollars, ou 2,65 dollars par action. Les ventes nettes du troisième trimestre étaient de 2,2 milliards de dollars en 2024, contre 1,9 milliard de dollars en 2023.
Faits saillants :
- Les bénéfices ont augmenté de 0,60 dollar par action par rapport au T3 2023, grâce à des volumes et des prix plus élevés dans le segment de l'emballage
- Les expéditions de produits en carton ondulé par jour ont augmenté de 11,1 % par rapport au T3 2023
- La production de carton pour conteneurs a atteint 1 293 000 tonnes
- Le volume des ventes du segment papier a augmenté de 4 % par rapport au T3 2023
L'entreprise prévoit des bénéfices de 2,47 dollars par action au T4, avec une demande toujours forte dans le segment de l'emballage mais des expéditions plus faibles dans le segment papier.
Packaging of America (NYSE: PKG) berichtete von einem Nettoeinkommen im dritten Quartal 2024 von 238 Millionen Dollar, oder 2,64 Dollar pro Aktie. Ohne Sonderposten betrug das Netto-Einkommen 239 Millionen Dollar, was 2,65 Dollar pro Aktie entspricht. Die Nettoumsätze im dritten Quartal beliefen sich auf 2,2 Milliarden Dollar im Jahr 2024, gegenüber 1,9 Milliarden Dollar im Jahr 2023.
Wichtige Höhepunkte:
- Der Gewinn stieg um 0,60 Dollar pro Aktie im Vergleich zum Q3 2023, angetrieben durch ein höheres Volumen und höhere Preise im Verpackungssegment
- Die Versandmenge von Wellpappe-Produkten pro Tag stieg um 11,1% im Vergleich zum Q3 2023
- Die Produktion von Containerboard erreichte 1.293.000 Tonnen
- Das Verkaufsvolumen im Papiersegment stieg um 4% im Vergleich zum Q3 2023
Das Unternehmen erwartet im Q4 einen Gewinn von 2,47 Dollar pro Aktie, mit weiterhin starker Nachfrage im Verpackungssegment, aber verringerten Lieferungen im Papiersegment.
- Third quarter net income increased to $238 million, or $2.64 per share
- Net sales grew to $2.2 billion in Q3 2024, up from $1.9 billion in Q3 2023
- Corrugated products shipments per day increased by 11.1% year-over-year
- Containerboard production reached a record 1,293,000 tons
- Paper segment sales volume increased by 4% compared to Q3 2023
- Successfully implemented previously announced price increases in both Packaging and Paper segments
- Operating and converting costs increased by $0.51 per share
- Depreciation expense increased by $0.05 per share
- Paper segment prices and mix decreased slightly, impacting earnings by $0.02 per share
- Expected lower shipments in the Paper segment for Q4 2024
Insights
Packaging of America (PKG) reported strong Q3 2024 results, with net income of
Key highlights:
- Net sales increased to
$2.2 billion , up from$1.9 billion in Q3 2023 - Corrugated products shipments per day up
11.1% year-over-year - Record containerboard production of 1,293,000 tons
- Paper segment sales volume up
4% year-over-year
The company's performance exceeded guidance by
This robust performance, particularly in the Packaging segment, indicates strong market demand and effective price implementation, which bodes well for the company's near-term prospects.
PKG's Q3 results reflect a broader trend in the packaging industry, driven by e-commerce growth and increased demand for sustainable packaging solutions. The
The company's ability to implement price increases successfully in both Packaging and Paper segments demonstrates pricing power and effective cost management. This is important in an inflationary environment and could positively impact margins going forward.
However, investors should note potential headwinds:
- Seasonal factors affecting Q4 outlook
- Hurricane impacts on certain markets (e.g., Florida strawberry crops)
- Rising energy and chemical costs
Despite these challenges, PKG's strong inventory management and capacity utilization position it well to capitalize on continued demand growth. The company's focus on operational efficiency and strategic capital investments appears to be paying off, potentially leading to sustained competitive advantages in the packaging market.
Diluted earnings per share attributable to Packaging Corporation of America shareholders |
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Three Months Ended |
||||||||
|
September 30 |
||||||||
|
2024 |
2023 |
Change |
||||||
Reported Diluted EPS |
$ |
2.64 |
$ |
2.03 |
$ |
0.61 |
|||
Special Items Expense |
0.01 |
0.02 |
(0.01) |
||||||
Diluted EPS excluding Special items (1) |
$ |
2.65 |
$ |
2.05 |
$ |
0.60 |
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|
|
|
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(1) Diluted EPS excluding Special Items is a non-GAAP financial measure. For information regarding our use of non-GAAP financial measures and descriptions and amounts of our special items, see the schedules with this release. |
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Reported earnings in the third quarter of 2024 include special items primarily for closure costs related to certain corrugated products facilities.
Excluding special items, the
Results were
Financial information by segment is summarized below and in the schedules with this release.
(dollars in millions) |
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|
Three Months Ended |
||||||
|
September 30 |
||||||
|
|
2024 |
|
|
|
2023 |
|
Segment operating income (loss) |
|||||||
Packaging |
$ |
320.7 |
|
$ |
256.8 |
|
|
Paper |
|
38.5 |
|
|
27.6 |
|
|
Corporate and Other |
|
(32.1 |
) |
|
(25.8 |
) |
|
$ |
327.1 |
|
$ |
258.6 |
|
||
Segment operating income (loss) excluding special items (1) |
|||||||
Packaging |
$ |
321.6 |
|
$ |
256.7 |
|
|
Paper |
|
38.5 |
|
|
30.2 |
|
|
Corporate and Other |
|
(32.1 |
) |
|
(25.8 |
) |
|
$ |
328.0 |
|
$ |
261.1 |
|
||
EBITDA excluding special items (1) |
|||||||
Packaging |
$ |
445.6 |
|
$ |
374.2 |
|
|
Paper |
|
43.1 |
|
|
35.4 |
|
|
Corporate and Other |
|
(28.1 |
) |
|
(21.8 |
) |
|
$ |
460.6 |
|
$ |
387.8 |
|
||
(1) |
Segment operating income (loss) excluding special items and EBITDA excluding special items are non-GAAP financial measures. We provide information regarding our use of non-GAAP financial measures and reconciliations of historical non-GAAP financial measures presented in this press release to the most comparable measure reported in accordance with GAAP in the schedules to this press release |
In the Packaging segment, corrugated products shipments per day were up
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “In the Packaging segment, we had great implementation of our previously announced containerboard and corrugated products price increases. Very strong demand throughout the quarter led to all-time quarterly records for containerboard production, total box shipments and shipments per day. We were able to meet this demand, and our customers’ quality and service needs, through the operational benefits of our capital spending program and the continued great focus and execution by our sales, customer service, mill and corrugated products plant employees. Our Paper segment had excellent results with our previously announced price increases implemented as planned, volume above forecasted levels, and well-managed mill operations. Fortunately, none of our facilities were significantly impacted by the two hurricanes during the quarter.”
“Looking ahead as we move from the third and into the fourth quarter,” Mr. Kowlzan added, “we expect demand in our Packaging segment to remain strong with corrugated shipments-per-day continuing to strengthen and slightly higher containerboard volume. However, total shipments for the corrugated business will be impacted by two less shipping days and recent hurricane damage to the strawberry crops in
We present our earnings expectation for the upcoming quarter excluding special items as special items are difficult to predict and quantify and may reflect the effect of future events. We do not currently expect any significant special items during the fourth quarter; however, additional special items may arise due to fourth quarter events.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in
Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about our future earnings and financial condition, expected benefits from acquisitions and restructuring activities, our industry and our business strategy. Statements that contain words such as “will”, “should”, “anticipate”, “believe”, “expect”, “intend”, “estimate”, “hope” or similar expressions, are forward-looking statements. These forward-looking statements are based on the current expectations of PCA. Because forward-looking statements involve inherent risks and uncertainties, the plans, actions and actual results of PCA could differ materially. Among the factors that could cause plans, actions and results to differ materially from PCA’s current expectations include the following: the impact of general economic conditions; conditions in the paper and packaging industries, including competition, product demand and product pricing; fluctuations in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; the possibility of unplanned outages or interruptions at our principal facilities; and legislative or regulatory requirements, particularly concerning environmental matters, as well as those identified under Item 1A. Risk Factors in PCA’s Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and available at the SEC’s website at “www.sec.gov”.
Conference Call Information:
WHAT: |
Packaging Corporation of America’s 3rd Quarter 2024 Earnings Conference Call |
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Conference ID: Packaging Corporation of America |
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WHEN: |
Wednesday, October 23, 2024 at 9:00am Eastern Time |
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PRE-REGISTRATION: |
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CALL-IN NUMBER: |
(833) 816-1102 ( |
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Dial in by 8:45am Eastern Time |
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WEBCAST INFO: |
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REBROADCAST DATES: |
October 23, 2024 through November 6, 2024 |
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REBROADCAST NUMBERS: |
(877) 344-7529 ( |
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Passcode: 4213034 |
| Packaging Corporation of America | ||||||||||||||||||||
| Consolidated Earnings Results | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| (dollars in millions, except per-share data) | ||||||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
September 30, |
|
September 30, |
||||||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||||||
| Net sales | $ |
2,182.4 |
|
$ |
1,936.0 |
|
$ |
6,237.2 |
|
$ |
5,864.5 |
|
||||||||
| Cost of sales |
|
(1,677.2 |
) |
(1 |
) |
|
(1,523.3 |
) |
(3 |
) |
|
(4,923.8 |
) |
(1)(2 |
) |
|
(4,575.7 |
) |
(3 |
) |
| Gross profit |
|
505.2 |
|
|
412.7 |
|
|
1,313.4 |
|
|
1,288.8 |
|
||||||||
| Selling, general, and administrative expenses |
|
(162.0 |
) |
(1 |
) |
|
(144.2 |
) |
|
(463.3 |
) |
(1 |
) |
|
(438.1 |
) |
(3 |
) |
||
| Other expense, net |
|
(16.1 |
) |
(1 |
) |
|
(9.9 |
) |
(3 |
) |
|
(51.0 |
) |
(1)(2 |
) |
|
(37.1 |
) |
(3 |
) |
| Income from operations |
|
327.1 |
|
|
258.6 |
|
|
799.1 |
|
|
813.6 |
|
||||||||
| Non-operating pension income (expense) |
|
1.2 |
|
|
(1.8 |
) |
|
3.4 |
|
|
(5.8 |
) |
||||||||
| Interest expense, net |
|
(9.7 |
) |
|
(12.3 |
) |
|
(29.7 |
) |
|
(42.2 |
) |
||||||||
| Income before taxes |
|
318.6 |
|
|
244.5 |
|
|
772.8 |
|
|
765.6 |
|
||||||||
| Provision for income taxes |
|
(80.5 |
) |
|
(61.3 |
) |
|
(188.8 |
) |
|
(189.6 |
) |
||||||||
| Net income | $ |
238.1 |
|
$ |
183.2 |
|
$ |
584.0 |
|
$ |
576.0 |
|
||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ |
2.65 |
|
$ |
2.04 |
|
$ |
6.51 |
|
$ |
6.41 |
|
||||||||
| Diluted | $ |
2.64 |
|
$ |
2.03 |
|
$ |
6.48 |
|
$ |
6.38 |
|
||||||||
| Computation of diluted earnings per share under the two class method: | ||||||||||||||||||||
| Net income | $ |
238.1 |
|
$ |
183.2 |
|
$ |
584.0 |
|
$ |
576.0 |
|
||||||||
| Less: Distributed and undistributed income available to participating securities |
|
(1.7 |
) |
|
(1.4 |
) |
|
(4.1 |
) |
|
(4.8 |
) |
||||||||
| Net income attributable to PCA shareholders | $ |
236.4 |
|
$ |
181.8 |
|
$ |
579.9 |
|
$ |
571.2 |
|
||||||||
| Diluted weighted average shares outstanding |
|
89.5 |
|
|
89.5 |
|
|
89.5 |
|
|
89.5 |
|
||||||||
| Diluted earnings per share | $ |
2.64 |
|
$ |
2.03 |
|
$ |
6.48 |
|
$ |
6.38 |
|
||||||||
| Supplemental financial information: | ||||||||||||||||||||
| Capital spending | $ |
146.7 |
|
$ |
89.8 |
|
$ |
468.4 |
|
$ |
328.6 |
|
||||||||
| Cash, cash equivalents, and marketable debt securities | $ |
841.3 |
|
$ |
726.5 |
|
$ |
841.3 |
|
$ |
726.5 |
|
||||||||
(1) |
The three and nine months ended September 30, 2024 include |
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(2) |
The nine months ended September 30, 2024 include |
||||||||||||
(3) |
The three and nine months ended September 30, 2023 include the following: |
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a. |
||||||||||||
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b. |
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| Packaging Corporation of America | |||||||||||||||
| Segment Information | |||||||||||||||
| Unaudited | |||||||||||||||
| (dollars in millions) | |||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
September 30, |
|
September 30, |
|||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
| Segment sales | |||||||||||||||
| Packaging | $ |
2,008.7 |
|
$ |
1,759.8 |
|
$ |
5,715.3 |
|
$ |
5,358.7 |
|
|||
| Paper |
|
159.3 |
|
|
157.9 |
|
|
473.2 |
|
|
451.6 |
|
|||
| Corporate and Other |
|
14.4 |
|
|
18.3 |
|
|
48.7 |
|
|
54.2 |
|
|||
$ |
2,182.4 |
|
$ |
1,936.0 |
|
$ |
6,237.2 |
|
$ |
5,864.5 |
|
||||
| Segment operating income (loss) | |||||||||||||||
| Packaging | $ |
320.7 |
|
$ |
256.8 |
|
$ |
804.3 |
|
$ |
810.5 |
|
|||
| Paper |
|
38.5 |
|
|
27.6 |
|
|
94.9 |
|
|
90.8 |
|
|||
| Corporate and Other |
|
(32.1 |
) |
|
(25.8 |
) |
|
(100.1 |
) |
|
(87.7 |
) |
|||
| Income from operations |
|
327.1 |
|
|
258.6 |
|
|
799.1 |
|
|
813.6 |
|
|||
| Non-operating pension income (expense) |
|
1.2 |
|
|
(1.8 |
) |
|
3.4 |
|
|
(5.8 |
) |
|||
| Interest expense, net |
|
(9.7 |
) |
|
(12.3 |
) |
|
(29.7 |
) |
|
(42.2 |
) |
|||
| Income before taxes | $ |
318.6 |
|
$ |
244.5 |
|
$ |
772.8 |
|
$ |
765.6 |
|
|||
| Segment operating income (loss) excluding special items (1) | |||||||||||||||
| Packaging | $ |
321.6 |
|
$ |
256.7 |
|
$ |
809.2 |
|
$ |
823.7 |
|
|||
| Paper |
|
38.5 |
|
|
30.2 |
|
|
100.7 |
|
|
99.3 |
|
|||
| Corporate and Other |
|
(32.1 |
) |
|
(25.8 |
) |
|
(100.1 |
) |
|
(87.7 |
) |
|||
$ |
328.0 |
|
$ |
261.1 |
|
$ |
809.8 |
|
$ |
835.3 |
|
||||
| EBITDA excluding special items (1) | |||||||||||||||
| Packaging | $ |
445.6 |
|
$ |
374.2 |
|
$ |
1,171.8 |
|
$ |
1,171.0 |
|
|||
| Paper |
|
43.1 |
|
|
35.4 |
|
|
114.3 |
|
|
115.3 |
|
|||
| Corporate and Other |
|
(28.1 |
) |
|
(21.8 |
) |
|
(88.3 |
) |
|
(76.1 |
) |
|||
$ |
460.6 |
|
$ |
387.8 |
|
$ |
1,197.8 |
|
$ |
1,210.2 |
|
||||
(1) |
Income (loss) from operations excluding special items, segment operating income (loss) excluding special items, earnings before non-operating pension income (expense), interest, income taxes, and depreciation, amortization, and depletion (EBITDA), segment EBITDA, EBITDA excluding special items, and segment EBITDA excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our segments and our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. The tables included in "Reconciliation of Non-GAAP Financial Measures" on the following pages reconcile the non-GAAP measures with the most directly comparable GAAP measures. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. |
| Packaging Corporation of America | |||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
| Unaudited | |||||||||||||||
| (dollars in millions) | |||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
September 30, |
|
September 30, |
|||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
| Packaging | |||||||||||||||
| Segment operating income | $ |
320.7 |
|
$ |
256.8 |
|
$ |
804.3 |
|
$ |
810.5 |
|
|||
| Facilities closure and other costs (income) |
|
0.9 |
|
|
(0.1 |
) |
|
1.0 |
|
|
13.5 |
|
|||
|
- |
|
|
- |
|
|
3.9 |
|
|
(0.3 |
) |
||||
| Segment operating income excluding special items (1) | $ |
321.6 |
|
$ |
256.7 |
|
$ |
809.2 |
|
$ |
823.7 |
|
|||
| Paper | |||||||||||||||
| Segment operating income | $ |
38.5 |
|
$ |
27.6 |
|
$ |
94.9 |
|
$ |
90.8 |
|
|||
|
- |
|
|
2.6 |
|
|
5.8 |
|
|
8.5 |
|
||||
| Segment operating income excluding special items (1) | $ |
38.5 |
|
$ |
30.2 |
|
$ |
100.7 |
|
$ |
99.3 |
|
|||
| Corporate and Other | |||||||||||||||
| Segment operating loss | $ |
(32.1 |
) |
$ |
(25.8 |
) |
$ |
(100.1 |
) |
$ |
(87.7 |
) |
|||
| Segment operating loss excluding special items (1) | $ |
(32.1 |
) |
$ |
(25.8 |
) |
$ |
(100.1 |
) |
$ |
(87.7 |
) |
|||
| Income from operations | $ |
327.1 |
|
$ |
258.6 |
|
$ |
799.1 |
|
$ |
813.6 |
|
|||
| Income from operations, excluding special items (1) | $ |
328.0 |
|
$ |
261.1 |
|
$ |
809.8 |
|
$ |
835.3 |
|
|||
| (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. |
| Packaging Corporation of America | |||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||
| Net Income Excluding Special Items and EPS Excluding Special Items (1) | |||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||
2024 |
2023 |
||||||||||||||||||||||||||
Income
|
|
Income
|
|
Net
|
|
Diluted
|
|
Income
|
|
Income
|
|
Net
|
|
Diluted
|
|||||||||||||
| As reported in accordance with GAAP | $ |
318.6 |
$ |
(80.5 |
) |
$ |
238.1 |
$ |
2.64 |
$ |
244.5 |
|
$ |
(61.3 |
) |
$ |
183.2 |
|
$ |
2.03 |
|||||||
| Special items (2): | |||||||||||||||||||||||||||
| Facilities closure and other costs (income) |
|
0.9 |
|
(0.2 |
) |
|
0.7 |
|
0.01 |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|
- |
|||||||
|
- |
|
- |
|
|
- |
|
- |
|
2.6 |
|
|
(0.6 |
) |
|
2.0 |
|
|
0.02 |
||||||||
| Total special items |
|
0.9 |
|
(0.2 |
) |
|
0.7 |
|
0.01 |
|
2.5 |
|
|
(0.6 |
) |
|
1.9 |
|
|
0.02 |
|||||||
| Excluding special items | $ |
319.5 |
$ |
(80.7 |
) |
$ |
238.8 |
$ |
2.65 |
$ |
247.0 |
|
$ |
(61.9 |
) |
$ |
185.1 |
|
$ |
2.05 |
|||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||
2024 |
2023 |
||||||||||||||||||||||||||
Income
|
|
Income
|
|
Net
|
|
Diluted
|
|
Income
|
|
Income
|
|
Net
|
|
Diluted
|
|||||||||||||
| As reported in accordance with GAAP | $ |
772.8 |
$ |
(188.8 |
) |
$ |
584.0 |
$ |
6.48 |
$ |
765.6 |
|
$ |
(189.6 |
) |
$ |
576.0 |
|
$ |
6.38 |
|||||||
| Special items (2): | |||||||||||||||||||||||||||
|
9.7 |
|
(2.4 |
) |
|
7.3 |
|
0.08 |
|
8.2 |
|
|
(2.0 |
) |
|
6.2 |
|
|
0.07 |
||||||||
| Facilities closure and other costs |
|
1.0 |
|
(0.3 |
) |
|
0.7 |
|
0.01 |
|
13.5 |
|
|
(3.4 |
) |
|
10.1 |
|
|
0.11 |
|||||||
| Total special items |
|
10.7 |
|
(2.7 |
) |
|
8.0 |
|
0.09 |
|
21.7 |
|
|
(5.4 |
) |
|
16.3 |
|
|
0.18 |
|||||||
| Excluding special items | $ |
783.5 |
$ |
(191.5 |
) |
$ |
592.0 |
$ |
6.57 |
$ |
787.3 |
|
$ |
(195.0 |
) |
$ |
592.3 |
|
$ |
6.56 |
|||||||
(1) |
Net income excluding special items and earnings per share excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and their performance. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. |
|
(2) |
Pre-tax special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded and this rate is adjusted for each subsequent quarter to be consistent with the estimated annual effective tax rate, in accordance with ASC 270, Interim Reporting, and ASC 740-270, Income Taxes – Intra Period Tax Allocation. For all periods presented, income taxes on pre-tax special items represent the current amount of tax. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1. |
| Packaging Corporation of America | ||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||
| Unaudited | ||||||||||||||
| (dollars in millions) | ||||||||||||||
| EBITDA and EBITDA Excluding Special Items (1) | ||||||||||||||
| EBITDA represents income before non-operating pension (income) expense, interest, income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items: | ||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||
September 30, |
|
September 30, |
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income | $ |
238.1 |
|
$ |
183.2 |
|
$ |
584.0 |
|
$ |
576.0 |
|||
| Non-operating pension (income) expense |
|
(1.2 |
) |
|
1.8 |
|
|
(3.4 |
) |
|
5.8 |
|||
| Interest expense, net |
|
9.7 |
|
|
12.3 |
|
|
29.7 |
|
|
42.2 |
|||
| Provision for income taxes |
|
80.5 |
|
|
61.3 |
|
|
188.8 |
|
|
189.6 |
|||
| Depreciation, amortization, and depletion |
|
132.7 |
|
|
129.3 |
|
|
389.6 |
|
|
386.8 |
|||
| EBITDA (1) | $ |
459.8 |
|
$ |
387.9 |
|
$ |
1,188.7 |
|
$ |
1,200.4 |
|||
| Special items: | ||||||||||||||
| Facilities closure and other costs (income) |
|
0.8 |
|
|
(0.1 |
) |
|
0.8 |
|
|
8.1 |
|||
|
- |
|
|
- |
|
|
8.3 |
|
|
1.7 |
||||
| EBITDA excluding special items (1) | $ |
460.6 |
|
$ |
387.8 |
|
$ |
1,197.8 |
|
$ |
1,210.2 |
|||
| (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. |
| Packaging Corporation of America | |||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
| Unaudited | |||||||||||||||
| (dollars in millions) | |||||||||||||||
| The following table reconciles segment operating income (loss) to segment EBITDA and segment EBITDA excluding special items: | |||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
September 30, |
|
September 30, |
|||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
| Packaging | |||||||||||||||
| Segment operating income | $ |
320.7 |
|
$ |
256.8 |
|
$ |
804.3 |
|
$ |
810.5 |
|
|||
| Depreciation, amortization, and depletion |
|
124.1 |
|
|
117.5 |
|
|
362.7 |
|
|
352.7 |
|
|||
| EBITDA (1) |
|
444.8 |
|
|
374.3 |
|
|
1,167.0 |
|
|
1,163.2 |
|
|||
| Facilities closure and other costs (income) |
|
0.8 |
|
|
(0.1 |
) |
|
0.8 |
|
|
8.1 |
|
|||
|
- |
|
|
- |
|
|
4.0 |
|
|
(0.3 |
) |
||||
| EBITDA excluding special items (1) | $ |
445.6 |
|
$ |
374.2 |
|
$ |
1,171.8 |
|
$ |
1,171.0 |
|
|||
| Paper | |||||||||||||||
| Segment operating income | $ |
38.5 |
|
$ |
27.6 |
|
$ |
94.9 |
|
$ |
90.8 |
|
|||
| Depreciation, amortization, and depletion |
|
4.6 |
|
|
7.8 |
|
|
15.1 |
|
|
22.5 |
|
|||
| EBITDA (1) |
|
43.1 |
|
|
35.4 |
|
|
110.0 |
|
|
113.3 |
|
|||
|
- |
|
|
- |
|
|
4.3 |
|
|
2.0 |
|
||||
| EBITDA excluding special items (1) | $ |
43.1 |
|
$ |
35.4 |
|
$ |
114.3 |
|
$ |
115.3 |
|
|||
| Corporate and Other | |||||||||||||||
| Segment operating loss | $ |
(32.1 |
) |
$ |
(25.8 |
) |
$ |
(100.1 |
) |
$ |
(87.7 |
) |
|||
| Depreciation, amortization, and depletion |
|
4.0 |
|
|
4.0 |
|
|
11.8 |
|
|
11.6 |
|
|||
| EBITDA (1) |
|
(28.1 |
) |
|
(21.8 |
) |
|
(88.3 |
) |
|
(76.1 |
) |
|||
| EBITDA excluding special items (1) | $ |
(28.1 |
) |
$ |
(21.8 |
) |
$ |
(88.3 |
) |
$ |
(76.1 |
) |
|||
| EBITDA excluding special items (1) | $ |
460.6 |
|
$ |
387.8 |
|
$ |
1,197.8 |
|
$ |
1,210.2 |
|
|||
| (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022657337/en/
Barbara Sessions
Packaging Corporation of America
INVESTOR RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com
Source: Packaging Corporation of America
FAQ
What was Packaging of America's (PKG) net income for Q3 2024?
How did PKG's Q3 2024 earnings compare to Q3 2023?
What was the growth in corrugated products shipments for PKG in Q3 2024?
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How did PKG's Paper segment perform in Q3 2024?
