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KapStone Paper and Packaging Corporation (NYSE: KS) announces that its mill in Longview, WA, has now been certified according to both the SFI and PEFC chain-of-custody standards, the highest levels of sustainable forestry certifications available. Previously the Longview mill had been certified to the SFI fiber sourcing standard.

KapStone's three other paper mills, five chip mills, and one sawmill are also certified to these same globally-recognized, chain-of-custody standards. 

According to the company's president, Randy Nebel, KapStone has a demonstrated track record of performance in the area of environmental protection. "These certifications give the company one more way to measure and demonstrate that performance. It shows we are contributing to the protection of water quality, conservation of wildlife habitat, biodiversity, and much more," Nebel says. 

Governments and buyers of forest products around the world recognize both the SFI and PEFC chain-of-custody certifications as important indicators of a company's efforts to ensure sustainable forestry practices. According to Nebel, this is why KapStone wanted all of its operating units to be certified to the same rigorous standards.

"We want to give all of our customers, no matter where they may be doing business in the world, the assurance that any paper, packaging, or forestry products they receive from KapStone derive from well-managed forests," Nebel said.

Chain-of-custody certification is a more rigorous form of certification than "sourcing" standards. The fiber sourcing standard requires that program participants prove that the raw material in their supply chain comes from legal and responsible sources. Chain-of-custody takes things a step further in that it requires the tracking and documentation of fiber content from certified forests, through production and manufacturing processes, to the end product shipped to customers.

Andrea K. Tarbox, CFO of KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") has been awarded 2012 Chicago CFO of the year by the Financial Executives International (FEI) Chicago Chapter. 

Chicago CFO of the Year® Awards are presented to senior financial leaders and recognize exceptional performance of financial professionals in their roles as corporate stewards in five categories: large public company, mid-size public company, large private company, mid-size private company and not-for-profit organizations.  

Tarbox, winner in the mid-size public company category, stated, "I consider this a KapStone win.  I am fortunate to have an extraordinary team who were adventurous enough to join the fledgling company and then to execute brilliantly in their areas of expertise."

Roger Stone, KapStone's Chairman and CEO, commented, "In many ways, Andrea is in a class all by herself.  She joined KapStone when it was in formation and she was our only financial employee.  She quickly recruited and built a talented and effective organization.  As the company grew, she integrated our acquisitions and created a cohesive, committed, and motivated group."

Tarbox joined the company in 2006.  KapStone has since grown from $0 in revenue to its current annual run-rate of well over $1 billion. Tarbox's previous career includes financial positions of increasing responsibility in several global companies including Gartner, British Petroleum and Fortune Brands.  Her career began with Ernst & Young.  Andrea earned a BA in psychology from Connecticut College and an MBA from theUniversity of Rhode Island.

SOURCE KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation has reported results for the third quarter ended September 30, 2012.

• Net sales of $310 million up $94 million, or 44 percent, versus prior year
• Net income of $18 million up $2 million, or 13 percent, versus 2011
• Adjusted EBITDA of $49 million up $7 million, or 17 percent, versus prior year
• Diluted EPS of $0.38 up $0.03 per share, or 9 percent, versus 2011
• Adjusted diluted EPS of $0.41 up $0.05 per share, or 14 percent, versus prior year

Roger W. Stone, Chairman and Chief Executive Officer, stated, "The announced $50 per ton containerboard price increase for mid-August shipments was implemented late in the third quarter and is expected to increase fourth quarter 2012 EBITDA by $7 million. Once fully implemented it should boost our EBITDA by approximately $45 million annually.

"Our mills produced 389,000 tons of paper for the quarter. Although this was below our expectations, our Roanoke Rapids mill was impacted by a flood in late August resulting from a rare deluge of rain which curtailed production and added flood clean-up and repair costs. In addition, our Charleston mill also encountered some productivity problems which temporarily impacted their operations.  Fortunately, our mills are now performing well, and Roanoke Rapids has had the best start-up from its annual planned maintenance outage since we have owned the mill."

Third Quarter Operating Highlights

Consolidated net sales of $309.5 million in the third quarter of 2012 increased by $93.7 million, or 43.4 percent compared to $215.8 million for the 2011 third quarter. The increase is primarily due to the USC acquisition which contributed $99.1 million of additional revenue based on selling 1.56 billion square feet of corrugated products compared to none in 2011. In 2012's third quarter, 329,000 tons of paper were sold compared to 327,000 tons a year earlier. The Company's average selling price increased by $2 per ton compared to the second quarter of 2012, but was $14 per ton lower than the third quarter of 2011 due to lower export containerboard prices and product mix.

Operating income of $31.1 million for the 2012 third quarter increased by $1.0 million, or 3.2 percent, compared to the 2011 third quarter. The improved financial performance primarily reflects benefits from the acquisition and the timing of annual planned maintenance outages, partially offset by lower selling prices, unplanned downtime at our Roanoke Rapids, NC mill and unfavorable foreign exchange rates.

Unfavorable foreign exchange rates resulting from the strengthening of the U.S. dollar compared to the euro reduced operating income by $1.5 million.

Interest expense, net was $1.9 million for the third quarter of 2012, up $1.3 million from a year ago as a result of a higher debt balance associated with the acquisition. At September 30, 2012, the interest rate on the term loan was 1.97 percent. Amortization of debt issuance costs of $0.9 million for the third quarter of 2012 increased by $0.5 million from a year ago due to costs associated with the Company's new credit agreement.

The effective tax rate for the third quarter of 2012 was 35.1 percent compared to 42.3 percent for the 2011 third quarter and increased diluted earnings per share by $0.04. The lower effective tax rate is due to a higher expected benefit from the domestic manufacturing deduction and $0.6 million of discrete tax adjustments related to prior years' tax returns. The 2011 effective tax rate included a discrete item for return to provision adjustment. For 2012, the Company estimates its cash tax rate to be about 10 percent reflecting utilization of net operating losses and the cellulosic biofuel tax credit.

Cash Flow and Working Capital

Cash and cash equivalents increased by $26.6 million in the quarter ended September 30, 2012, to $36.3 million reflecting $40.5 million of net cash provided by operating activities, $13.9 million of cash used by investing activities and $0.1 million of cash provided by financing activities.

Capital expenditures for the third quarter of 2012 totaled $13.9 million. The Company estimates $64.0 million of capital expenditures for the year.

At September 30, 2012, the Company had approximately $160.7 million of working capital and $142.8 million of revolver borrowing capacity.

Conclusion

In summary, Stone commented, "In September, we announced our plans to invest $29 million in our Charleston, South Carolina mill to improve our ability to produce ultra high performance lightweight linerboard grades positioning us well for future customer needs.  Our balance sheet and cash flow generation is very strong, and we are well-poised to continue to grow this company profitably."

SOURCE KapStone Paper and Packaging Corporation

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KapStone Paper and Packaging Corporation has announced that it has completed the acquisition of U.S. Corrugated, Inc. ("USC"). Under the terms of the sale, KapStone acquired USC, including a 240,000 ton recycled containerboard paper mill in Cowpens, SC and 14 converting facilities in the eastern and mid-western United States. USC has been successful in creating strong, long-term customer relationships resulting from outstanding service, quality and innovation.

"Today we are welcoming USC's team as the newest members of KapStone," stated Roger W. Stone, Chairman and Chief Executive Officer. "We look forward to building on their momentum. The acquisition of USC now transforms KapStone into a much more profitable and stronger company."

Funding for the acquisition came from cash on hand and borrowing under a new $525 million senior secured credit facility led by Bank of America Merrill Lynch and Barclays Capital. The new facility consists of a $375 million term loan maturing over five years and a $150 million revolving credit facility. At closing, KapStone's previously existing $101 million term loan was repaid. KapStone now has a $375 million 5 year term loan at an initial interest rate of 2.25%. The revolver was unused and is available for working capital requirements. 

SOURCE KapStone Paper and Packaging Corporation 

KapStone Paper and Packaging Corporation ("KapStone") announced that they have ranked 10th overall on Forbes's annual list of the 100 Best Small Companies according to the rankings included in the November 5, 2011 issue. Forbes determined the rankings based upon return on equity, growth of earnings and sales, and the relative stock performance of each company as compared with that of its peers over the past 12 months and over 5 years.

Roger Stone, Chief Executive Officer, commented, "We are very pleased with the recognition from Forbes as the 10th best small company in America, and we will strive to maintain the quality and momentum of our growth with the completion of our latest acquisition of U.S. Corrugated."

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC, and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business currently employs approximately 1600 people. The Company has recently announced plans to acquire U.S. Corrugated for $330 million.

SOURCE KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone" or "the Company"), a leading North American producer of unbleached kraft paper products and linerboard, today reported that the Company prepaid the balance of earn-outs due to International Paper Company ("IP"). The earn-out obligations arose from the June 23, 2006 agreement for the Company's purchase from IP of the kraft paper business assets, including a paper mill located in Roanoke Rapids, NC, and a dunnage bag manufacturing facility located in Fordyce, AR. A portion of the earn-out obligations was paid to IP upon the sale of the dunnage bag business in March of 2009, leaving a potential $55.0 million payment in April of 2012.

KapStone could not foresee any realistic scenario that would result in a reduction of the $55.0 million obligation. However, the early payment allowed KapStone to take advantage of an 8 percent annualized discount reducing the obligation from $55.0 million to $49.7 million, a savings of $5.3 million. The earn-out payment will be accounted for as goodwill.

"We have been very pleased with the outstanding performance of the Roanoke Rapids operation, and we look forward to continued excellent results. Quite frankly, I would have been very disappointed if this payment had not been earned," said Roger W. Stone, Chairman and Chief Executive Officer.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1,600 people.

SOURCE KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation, a leading North American producer of unbleached kraft paper products and linerboard, will release its 2010 second quarter earnings on Wednesday, August 4, 2010, after the market closes.

The Company will host a conference call on August 5 at 11:00 a.m. ET (10:00 a.m. CT) to review the results for the quarter. All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:

                                Domestic: 866.788.0542
                              International: 857.350.1680
                            Participant Passcode: 442033661

A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the "Investors" section.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com) a password-protected event management site. A replay of the webcast will also be on the Web site beginning at approximately 2:00 p.m. ET the same day.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1,600 people.

SOURCE KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation, announced today that Matthew Kaplan, president, and Andrea K. Tarbox, vice president and CFO, will be presenting at the Stephens Inc. 2010 Spring Investor Conference in New York on Tuesday, May 25, 2010, at 9:30 AM ET. A live audio webcast of the presentation and slide materials to be used in connection with the presentation will be accessible via KapStone's Investor Relations section of the company's website at http://ir.kapstonepaper.com. An audio replay of the webcast will be available at the site for 90 days.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of Kapstone Kraft paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1,600 people.

SOURCE KapStone Paper and Packaging Corporation

 KapStone Paper and Packaging Corporation (NYSE: KS), a leading North American producer of unbleached kraft paper products and linerboard, will release its 2010 first quarter earnings on Wednesday, May 5, 2010, after the market closes.

The Company will host a conference call on May 6 at 3:00 p.m. ET (2:00 p.m. CT) to review the results for the quarter. All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone's website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:

                             Domestic: 866.271.0675
                           International: 617.213.8892
                         Participant Passcode: 45990908

A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the "Investors" section.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com) a password-protected event management site. A replay of the webcast will also be on the Web site beginning at approximately 5:00 p.m. ET the same day.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1,600 people.

SOURCE KapStone Paper and Packaging Corporation