Sealed Air Corporation has further expanded its solutions portfolio and design capabilities with the acquisition of AFP, Inc., a leading, privately held fabricator of foam, corrugated, molded pulp and wood packaging solutions. The sale closed August 1, 2018. AFP specializes in custom-engineered protective packaging for retail, e-commerce and direct shipping applications. Acquiring the company will allow Sealed Air to better position its fabricated foam innovations such as EcoPure, a sustainable solution made from plant-based resin. AFP generated $125 million in net sales in 2017 and operates six facilities across the U.S. with further presence in Asia and Mexico. Founded in 1978, it employs 260 and is headquartered in Pflugerville, Texas. Click Read More below for additional information.
KapStone Paper and Packaging Corporation (NYSE:KS) today reported results for the second quarter ended June 30, 2015. As compared to 2014’s second quarter, results for 2015’s second quarter are below:
*Net sales of $671 million up $81 million, or 14 percent
*Net income of $34 million down $17 million, or 33 percent
*Adjusted net income of $42 million down $14 million, or 24 percent
*Adjusted EBITDA of $110 million down $16 million, or 13 percent
*Adjusted EBITDA margin of 16.4 percent, down from 21.4 percent
*Diluted EPS of $0.35 down $0.18 per share, or 34 percent
*Adjusted diluted EPS of $0.44 down $0.14 per share, or 24 percent
Roger W. Stone, Chairman and Chief Executive Officer, stated, “KapStone’s mill operations performed very well this quarter, delivering record second quarter production despite the loss of 10,400 tons due to the planned Roanoke Rapids mill outage. Our corrugated products shipments year-to-date were up 4 percent on an average weekly basis over the same period in 2014. The stronger dollar, however, negatively impacted our export sales, resulting in lower sales prices for saturating kraft, export containerboard, and extensible grade kraft paper and a less favorable product mix.
“We closed on the Victory Packaging acquisition on June 1, 2015, and our quarterly results include Victory’s operations for 30 days. Victory’s results for June were very positive, with revenues of $93 million and adjusted EBITDA of $7 million. We are aggressively working on realizing the benefits of increased integration that Victory provides.”
Consolidated net sales of $671 million in the second quarter of 2015 increased by $81 million, or 14 percent compared to $590 million for the 2014 second quarter. The increase is primarily due to $93 million from the Victory acquisition partially offset by $4 million, reflecting a stronger U.S. dollar compared to the Euro which impacted sales in Europe and some exports, and slightly lower sales volume. The Company sold 710,000 tons of paper during the second quarter of 2015 compared to 720,000 tons a year earlier. The Company’s average mill selling price of $667 per ton in the second quarter of 2015 decreased by $18 per ton compared to the second quarter of 2014, due to the stronger U.S. dollar and lower domestic and export containerboard prices, partially offset by higher kraft paper prices.
Operating income of $61 million for the 2015 second quarter decreased by $24 million, or 28 percent, compared to the 2014 second quarter. The lower operating earnings primarily reflects higher planned maintenance outage costs as we moved our Roanoke Rapids mill outage from October in 2014 to April of this year, in addition to lower average mill selling prices, 10,000 tons of lower sales volume, higher fiber costs, inflation on compensation and benefit costs, and the stronger U.S. dollar which impacted prices in Europe and for some exports partially offset by lower severance expenses. In addition, over $6 million of Victory Packaging acquisition-related expenses were incurred in the 2015 second quarter, including $4 million for a non-cash inventory step-up charge as well as $2 million for amortization expense of identified intangible assets.