Q2 2020 Highlights
*Net Sales were $1,611.0 million versus $1,552.8 million in the prior year period.
*Net Income was $52.1 million versus $63.8 million in the prior year period.
*Net organic sales increased 1.5% in Q2 and 3% in the first half of 2020 versus the prior year periods.
*Continue to operate safely and effectively; investing in multiple protocols focused on the well-being of employees and serving customers globally.
*Successfully closed the 70,000 ton White Pigeon, Michigan Coated Recycled Board (CRB) mill and shut down the 120,000 ton West Monroe, Louisiana PM1 containerboard machine.
*Repurchased $38.0 million in common shares during the quarter; delivered $64.9 million to stakeholders in share repurchases, dividends and partnership distributions.
Graphic Packaging Holding Company (NYSE: GPK), (the “Company”), a leading provider of packaging solutions to food, beverage, foodservice, and other consumer products companies, today reported Net Income for second quarter 2020 of $52.1 million, or $0.19 per share, based upon 280.5 million weighted average diluted shares. This compares to second quarter 2019 Net Income of $63.8 million, or $0.22 per share, based upon 295.7 million weighted average diluted shares.
Second quarter 2020 Net Income was negatively impacted by a net $21.1 million of special charges. The charges are detailed in the Reconciliation of Non-GAAP Financial Measures table attached. When adjusting for these charges, Adjusted Net Income for the second quarter of 2020 was $72.0 million, or $0.26 per diluted share. This compares to second quarter 2019 Adjusted Net Income of $69.6 million or $0.24 per diluted share.
“We delivered excellent performance in the second quarter as the Company adapted to changing demand patterns resulting from the global COVID-19 pandemic. Sales improved 4% year over year driven by acquisitions and net organic sales growth of 1.5%, which was partially offset by a decline in open market paperboard sales. The recession resistant nature of our business was quite apparent during the quarter and I am proud of the work our employees accomplished in successfully serving customers and ensuring continuity of supply globally,” said President and CEO Michael Doss. “We have taken decisive actions in our business to grow annual EBITDA year over year while generating significant operating cash flow. We remain committed to achieving the long-term goals established in our Vision 2025.”
Doss added, “I am very pleased with our performance in the first half of the year and that we are in a position to reinstate full year 2020 guidance. It is a testament to our entire organization that the growth and financial goals we established at the beginning of the year, prior to the pandemic, remain achievable.”
Net Sales increased 4% to $1,611.0 million in the second quarter of 2020, compared to $1,552.8 million in the prior year period. The $58.2 million increase was driven by $5.4 million of positive price and $65.9 million of volume/mix. These benefits were partially offset by $13.1 million of unfavorable foreign exchange.
EBITDA for the second quarter of 2020 was $238.9 million, or $18.3 million lower than the second quarter of 2019. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA decreased 3% to $260.0 million in the second quarter of 2020 from $267.1 million in the second quarter of 2019. When comparing against the prior year quarter, Adjusted EBITDA in the second quarter of 2020 was positively impacted by $5.4 million of higher pricing, $10.4 million of commodity input cost deflation and $15.3 million of increased productivity. These benefits were offset by $24.6 million in planned maintenance outage expenses, $12.9 million of other inflation (primarily labor and benefits) and $2.2 million of unfavorable volume/mix,
more details at: https://investors.graphicpkg.com/news/news-details/2020/Graphic-Packaging-Holding-Company-Reports-Second-Quarter-2020-Results-Reinstates-Adjusted-EBITDA-and-Cash-Flow-Guidance-for-Full-Year-2020/default.aspx