Kapstone Paper & Packaging Corporation (KS) has reported a 62.95 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.99 million, or $0.06 a share in the quarter, compared with $16.17 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.10 million, or $0.15 a share compared with $22.24 million or $0.23 a share, a year ago.
Revenue during the quarter grew 3.74 percent to $765.84 million from $738.22 million in the previous year period. Gross margin for the quarter contracted 172 basis points over the previous year period to 17.23 percent. Total expenses were 97.37 percent of quarterly revenues, up from 95.31 percent for the same period last year. That has resulted in a contraction of 206 basis points in operating margin to 2.63 percent.
Operating income for the quarter was $20.12 million, compared with $34.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80.80 million compared with $88.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 141 basis points in the quarter to 10.55 percent from 11.96 percent in the last year period.
Matt Kaplan, president and chief executive officer, stated, "While first quarter results were disappointing, we are experiencing exceptional positive momentum. Demand for containerboard, corrugated boxes, and kraft paper is strong. Pricing across our important product lines is rapidly increasing. Our product mix has improved as domestic containerboard and box sales have increased while exports have declined."
Operating cash flow drops significantly Kapstone Paper & Packaging Corp has generated cash of $32.67 million from operating activities during the quarter, down 44.26 percent or $ 25.94 million, when compared with the last year period.
The company has spent $72.17 million cash to meet investing activities during the quarter as against cash outgo of $31.81 million in the last year period.
Cash flow from financing activities was $18.03 million for the quarter as against cash outgo of $26.54 million in the last year period.
Cash and cash equivalents stood at $7.92 million as on Mar. 31, 2017, up 11.73 percent or $0.83 million from $7.08 million on Mar. 31, 2016.
Working capital declines
Kapstone Paper & Packaging Corp has witnessed a decline in the working capital over the last year. It stood at $388.19 million as at Mar. 31, 2017, down 6.84 percent or $28.51 million from $416.70 million on Mar. 31, 2016. Current ratio was at 1.94 as on Mar. 31, 2017, down from 2.25 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 69 days for the last year period. Days sales outstanding were almost stable at 48 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 24 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding was almost stable at 30 days for the quarter, when compared with the previous year period.
Debt comes down marginally Kapstone Paper & Packaging Corp has recorded a decline in total debt over the last one year. It stood at $1,514.11 million as on Mar. 31, 2017, down 1.29 percent or $19.85 million from $1,533.96 million on Mar. 31, 2016. Total debt was 45.57 percent of total assets as on Mar. 31, 2017, compared with 47.75 percent on Mar. 31, 2016. Debt to equity ratio was at 1.67 as on Mar. 31, 2017, down from 1.79 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
