KapStone Paper and Packaging Corporation recently reported results for the second quarter ended June 30, 2010.
Net sales of $199 million, up 13 percent versus Q1 2010; up 27 percent, versus 2009
Average revenue per ton of $585, up $50 versus Q1 2010; up $56 versus 2009
Cash flows from operations of $35.0 million, up $12.0 million versus Q1 2010
Adjusted diluted EPS of $0.17, up $0.23 from Q1 2010; up $0.59 versus 2009
Roger W. Stone, Chairman and Chief Executive Officer, stated, "Our strong operating performance in the second quarter of 2010 coupled with favorable industry dynamics enabled KapStone to achieve record sales of $199.1 million, excluding the dunnage bag business. Our mills produced 323,000 tons of paper and ran at a 99 percent operating rate. The $60 per ton price increase for linerboard and kraft paper announced in April should be fully realized next quarter. In July, we announced an additional price increase of $60 per ton for linerboard and $40 to $60 per ton for kraft paper, both expected to be substantially realized in the fourth quarter of 2010. KapStone's order backlog remains very strong. Our wood costs are declining from earlier in the year when unusually wet weather in the Southeast had put upward pressure on wood costs. We decided not to make any voluntary repayments on our low cost debt, and therefore, our cash balance grew to nearly $22 million at June 30th and net debt was $106 million."
