Packaging Corp. of America (PKG, Financial) filed Quarterly Report for the period ended 2010-06-30.
Packaging Corp. Of America has a market cap of $2.51 billion; its shares were traded at around $24.36 with a P/E ratio of 26.8 and P/S ratio of 1.2. The dividend yield of Packaging Corp. Of America stocks is 2.5%. Packaging Corp. Of America had an annual average earning growth of 2.1% over the past 10 years.PKG is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Pioneer Investments, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC.
Income from operations decreased by $84.0 million, or 45.3%, for the six months ended June 30, 2010 compared to the six months ended June 30, 2009, primarily attributable to the alternative fuel mixture tax credits of $79.7 million described previously which was recorded in the second quarter of 2009 partially offset by an additional $9.2 million recorded in the first quarter 2010. Excluding the alternative fuel mixture tax credits, energy project related asset disposals ($3.6 million) in 2010 and costs related to the closure of the Ackerman Mississippi sawmill ($2.0 million) in 2010, income from operations decreased $7.9 million for the six months ended June 30, 2010 compared to the six months ended June 30, 2009. Such decrease was primarily attributable to increased costs for fiber ($31.2 million) and lower average sales prices ($23.7 million), partially offset by increased sales volume ($39.7 million) and lower energy costs ($9.7 million).
Selling and administrative expenses increased $2.9 million, or 3.3%, for the six months ended June 30, 2010 compared to the same period in 2009, primarily as a result of higher expenses for salaries ($0.8 million), related fringe benefits ($0.6 million), travel, entertainment and meetings ($0.8 million), and broker commissions ($0.5 million).
Net cash provided by operating activities for the six months ended June 30, 2010 was $108.6 million compared to $141.2 million for the six months ended June 30, 2009, a decrease of $32.7 million, or 23.1%. Net income, excluding the income from the alternative fuel mixture tax credits (described in Note 15 to the financial statements included in this report) of $9.2 million in 2010 and $80.2 million in 2009, was $48.0 million and $54.3 million, respectively, for the first six months of 2010 and 2009, a decrease of $6.3 million that reduced net cash provided by operating activities. Additionally, the deferred tax provision in 2010 was lower by $10.1 million and requirements for operating assets and liabilities were higher by $41.6 million during the first six months of 2010 compared to the same period in 2009. This was primarily due to higher accounts receivable levels in 2010 of $57.2 million as a result of both higher sales prices and increased sales volumes previously described. These decreases in net cash provided by operating activities were partially offset by an additional $22.3 million of alternative fuel mixture tax credits used to reduce federal tax payments during the first six months of 2010 compared to the same period in 2009. Cash requirements for operating activities are subject to PCAs operating needs, the timing of collection of receivables and payments of payables and expenses, and seasonal fluctuations in the Companys operations.
Net cash used for financing activities totaled $30.8 million for the six months ended June 30, 2010, a difference of $14.8 million, or 32.4%, compared to the same period in 2009. The difference was primarily attributable to lower common stock dividends paid of $15.2 million and higher proceeds from the exercise of stock options of $2.2 million during the first six months of 2010 compared to the same period in 2009, partially offset by repurchases of PCA common stock of $3.1 million during the first six months of 2010.
PCA currently expects to incur capital expenditures of about $300.0 million in 2010, including up to $180.0 million for major energy optimization projects at its Counce and Valdosta mills. The remaining $120.0 million in expenditures will be used primarily for maintenance capital, cost reduction, business growth and environmental compliance. As of June 30, 2010, PCA spent $155.3 million for capital expenditures and had committed to spend an additional $214.5 million in the remainder of 2010 and beyond.
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Packaging Corp. Of America has a market cap of $2.51 billion; its shares were traded at around $24.36 with a P/E ratio of 26.8 and P/S ratio of 1.2. The dividend yield of Packaging Corp. Of America stocks is 2.5%. Packaging Corp. Of America had an annual average earning growth of 2.1% over the past 10 years.PKG is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Pioneer Investments, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Income from operations decreased by $68.0 million, or 50.1%, for the three months ended June 30, 2010 compared to the three months ended June 30, 2009, primarily due to alternative fuel mixture tax credits in 2009 ($79.7 million), which was not available in 2010. Excluding the alternative fuel mixture tax credits and 2010 energy project related asset disposals ($1.7 million), income from operations increased $13.4 million, or 23.9% compared to second quarter 2009. Such increase primarily resulted from increased sales prices ($18.9 million) and volume ($13.6 million), and lower energy costs ($3.0 million) partially offset by higher costs for recycled fiber ($10.4 million), wood fiber ($5.1 million), transportation ($3.4 million) and maintenance and building repairs ($2.4 million).Income from operations decreased by $84.0 million, or 45.3%, for the six months ended June 30, 2010 compared to the six months ended June 30, 2009, primarily attributable to the alternative fuel mixture tax credits of $79.7 million described previously which was recorded in the second quarter of 2009 partially offset by an additional $9.2 million recorded in the first quarter 2010. Excluding the alternative fuel mixture tax credits, energy project related asset disposals ($3.6 million) in 2010 and costs related to the closure of the Ackerman Mississippi sawmill ($2.0 million) in 2010, income from operations decreased $7.9 million for the six months ended June 30, 2010 compared to the six months ended June 30, 2009. Such decrease was primarily attributable to increased costs for fiber ($31.2 million) and lower average sales prices ($23.7 million), partially offset by increased sales volume ($39.7 million) and lower energy costs ($9.7 million).
Selling and administrative expenses increased $2.9 million, or 3.3%, for the six months ended June 30, 2010 compared to the same period in 2009, primarily as a result of higher expenses for salaries ($0.8 million), related fringe benefits ($0.6 million), travel, entertainment and meetings ($0.8 million), and broker commissions ($0.5 million).
Net cash provided by operating activities for the six months ended June 30, 2010 was $108.6 million compared to $141.2 million for the six months ended June 30, 2009, a decrease of $32.7 million, or 23.1%. Net income, excluding the income from the alternative fuel mixture tax credits (described in Note 15 to the financial statements included in this report) of $9.2 million in 2010 and $80.2 million in 2009, was $48.0 million and $54.3 million, respectively, for the first six months of 2010 and 2009, a decrease of $6.3 million that reduced net cash provided by operating activities. Additionally, the deferred tax provision in 2010 was lower by $10.1 million and requirements for operating assets and liabilities were higher by $41.6 million during the first six months of 2010 compared to the same period in 2009. This was primarily due to higher accounts receivable levels in 2010 of $57.2 million as a result of both higher sales prices and increased sales volumes previously described. These decreases in net cash provided by operating activities were partially offset by an additional $22.3 million of alternative fuel mixture tax credits used to reduce federal tax payments during the first six months of 2010 compared to the same period in 2009. Cash requirements for operating activities are subject to PCAs operating needs, the timing of collection of receivables and payments of payables and expenses, and seasonal fluctuations in the Companys operations.
Net cash used for financing activities totaled $30.8 million for the six months ended June 30, 2010, a difference of $14.8 million, or 32.4%, compared to the same period in 2009. The difference was primarily attributable to lower common stock dividends paid of $15.2 million and higher proceeds from the exercise of stock options of $2.2 million during the first six months of 2010 compared to the same period in 2009, partially offset by repurchases of PCA common stock of $3.1 million during the first six months of 2010.
PCA currently expects to incur capital expenditures of about $300.0 million in 2010, including up to $180.0 million for major energy optimization projects at its Counce and Valdosta mills. The remaining $120.0 million in expenditures will be used primarily for maintenance capital, cost reduction, business growth and environmental compliance. As of June 30, 2010, PCA spent $155.3 million for capital expenditures and had committed to spend an additional $214.5 million in the remainder of 2010 and beyond.
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