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RockTenn Reports Third Quarter Fiscal 2013 Earnings Up 136% Over the Prior Year Quarter



RockTenn Reports Third Quarter Fiscal 2013 Earnings Up 136% Over the Prior
Year Quarter

NORCROSS, Ga., July 23, 2013 (GLOBE NEWSWIRE) -- RockTenn (NYSE:RKT) today
reported earnings for the quarter ended June 30, 2013 of $1.91 per diluted
share and adjusted earnings of $2.16 per diluted share. Adjusted earnings per
share increased 127% over the prior year quarter.

                                                                    
                             Three Months Three Months Nine Months Nine Months
                             Ended        Ended        Ended       Ended
                             June 30,     June 30,     June 30,    June 30,
                             2013         2012         2013        2012
                                                                    
Earnings per diluted share   $1.91        $0.81        $7.55       $2.31
                                                                    
Alternative fuel mixture
credit tax reserve           ―            ―            (3.47)      ―
adjustment
Restructuring and other
costs and operating losses   0.25         0.14         0.55        0.61
and transition costs due to
plant closures
Loss on extinguishment of    ―            ―            ―           0.17
debt
                                                                    
Adjusted earnings per        $2.16        $0.95        $4.63       $3.09
diluted share

Third Quarter Results

  * Net sales of $2,448 million for the third quarter of fiscal 2013 increased
    $145 million compared to the third quarter of fiscal 2012. Segment income
    of $274 million increased $115 million or 72% over the prior year quarter.
  * RockTenn's restructuring and other costs and operating losses and
    transition costs due to plant closures for the third quarter of fiscal
    2013 were $0.25 per diluted share after-tax. These costs primarily
    consisted of $22 million of pre-tax facility closure charges and $2
    million of pre-tax acquisition and integration costs. The pre-tax facility
    closure charges primarily consisted of corrugated converting facilities
    acquired in the Smurfit-Stone Acquisition.

Chairman and Chief Executive Officer's Statement

RockTenn Chairman and Chief Executive Officer James A. Rubright stated, "Our
quarterly adjusted earnings of $2.16 per share, up 93% over the preceding
quarter and 127% over the prior year quarter, reflect the continued
substantial improvements we are making in operating our businesses, executing
capital projects and executing our sales and pricing strategy. As these
broadly based initiatives continue to strengthen and as we further implement
the current pricing initiatives in corrugated packaging and consumer
paperboard grades, our earnings for the fourth quarter and the next fiscal
year should also be sharply higher than our earnings for the comparable prior
year periods."

Segment Results

Containerboard and Paperboard Tons Shipped  

Corrugated Packaging segment tons shipped increased approximately 102,000 tons
over the prior year quarter due to increased production from operating
improvements and reduced maintenance outage tons.  Consumer Packaging segment
paperboard and pulp shipments of approximately 363,000 tons increased
approximately 15,000 tons over the prior year quarter.

Corrugated Packaging Segment

Corrugated Packaging segment net sales increased $174 million to $1,720
million and segment income increased $123 million to $196 million in the third
quarter of fiscal 2013 compared to the prior year quarter. The increased sales
and earnings are primarily related to higher selling prices and volumes and
increased synergies that were partially offset by higher commodity and other
costs. In addition, as a result of the previously disclosed restructuring and
extension of a steam supply contract for its Jacksonville recycled
containerboard mill, RockTenn recorded a $0.10 per share non-cash gain in the
quarter by reducing amortization expense. Corrugated Packaging segment EBITDA
margin was 17.3% for the third quarter of fiscal 2013.

Consumer Packaging Segment

Consumer Packaging segment net sales increased $16 million and segment income
declined $8 million in the third quarter of fiscal 2013 compared to the prior
year quarter primarily as generally lower selling prices and higher virgin
fiber and energy costs more than offset higher volumes and lower recycled
fiber costs. Consumer Packaging segment EBITDA margin was 15.7% for the third
quarter of fiscal 2013.

Recycling Segment

Recycling segment net sales decreased $64 million over the prior year third
quarter to $275 million primarily as a result of lower volume and pricing.
Segment income was relatively flat at $2 million in the third quarter of
fiscal 2013 compared to the prior year quarter. Recycling segment EBITDA
margin was 1.9% for the third quarter of fiscal 2013.

Cash Provided From Operating, Financing and Investing Activities

Cash provided by operations was $270 million in the third quarter of fiscal
2013, after pension funding in excess of expense of $45 million. We reduced
net debt (as defined) by $144 million in the June quarter to $2.98 billion and
our Leverage Ratio (as defined) was 2.29 times.  Total debt was $3.03 billion
at June 30, 2013. We invested $113 million in capital expenditures and
returned $22 million in dividends to our shareholders. 

Conference Call

We will host a conference call to discuss our results of operations for the
third quarter of fiscal 2013 and other topics that may be raised during the
discussion at 9:00 a.m., Eastern Time, on July 24, 2013. The conference call
will be webcast live with an accompanying slide presentation, along with a
copy of this press release, at www.rocktenn.com.

Investors who wish to participate in the webcast via teleconference should
dial 888-790-4710 (inside the U.S.) or 773-756-0961 (outside the U.S.) at
least 15 minutes prior to the start of the call and enter the passcode
ROCKTENN. Replays of the call will be available through August 7, 2013 and can
be accessed at 866-351-2785 (U.S. callers) and 203-369-0055 (outside the
U.S.).

About RockTenn

RockTenn (NYSE:RKT) is one of North America's leading integrated manufacturers
of corrugated and consumer packaging. RockTenn's 26,000 employees are
committed to exceeding their customers' expectations – every time. The Company
operates locations in the United States, Canada, Mexico, Chile, Argentina and
China. For more information, visit www.rocktenn.com.

Cautionary Statements

Statements in this release that do not relate strictly to historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on our
current expectations, beliefs, plans or forecasts and use words such as will,
estimate, anticipate, project, intend, or expect, or refer to future time
periods, and include statements made in this report regarding, among other
things our belief that the continued substantial improvements we are making in
operating our businesses, executing capital projects and executing our sales
and pricing strategy, as well as that these broadly based initiatives continue
to strengthen and as we further implement the current pricing initiatives in
corrugated packaging and consumer paperboard grades, our earnings for the
fourth quarter and the next fiscal year should also be sharply higher than our
earnings for the comparable prior year periods constitute forward-looking
statements within the meaning of the federal securities laws. These statements
are subject to certain risks and uncertainties including with respect to our
expectations regarding economic, competitive and market conditions generally;
expected volumes and price levels of purchases by customers; fiber and energy
costs; costs associated with facility closures; competitive conditions in our
businesses and possible adverse actions of our customers, our competitors and
suppliers. These expectations are based on assumptions that management
believes are reasonable; however, undue reliance should not be placed on these
forward-looking statements because these risks and uncertainties could cause
actual results to differ materially from those contained in any
forward-looking statements. There are many other factors and uncertainties
that impact these forward-looking statements that we cannot predict
accurately, including our ability to integrate Smurfit-Stone or to achieve
benefits from the Smurfit-Stone acquisition, including synergies, performance
improvements and successful implementation of capital projects. Further, our
business is subject to a number of general risks that would affect any such
forward-looking statements including, among others, decreases in demand for
our products; increases in energy, raw materials, shipping and capital
equipment costs; reduced supply of raw materials; fluctuations in selling
prices and volumes; intense competition; the potential loss of certain key
customers; changes in environmental and other governmental regulation; and
adverse changes in general market and industry conditions. These risks are
more particularly described in our filings with the Securities and Exchange
Commission, including under the caption "Business―Forward-Looking Information"
and "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended
September 30, 2012. The information contained in this release speaks as of the
date hereof and we do not undertake any obligation to update this information
as future events unfold.

ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
                                                                   
                                                                   
                               FOR THE THREE MONTHS  FOR THE NINE MONTHS ENDED
                               ENDED
                               June 30,   June 30,   June 30,     June 30,
                               2013       2012       2013         2012
                                                                   
                                                                   
NET SALES                       $ 2,448.3  $ 2,303.2  $ 7,060.3    $ 6,853.8
                                                                   
Cost of Goods Sold              1,951.6    1,943.4    5,768.9      5,741.0
                                                                   
                                                                   
Gross Profit                    496.7      359.8      1,291.4      1,112.8
Selling, General and            243.9      229.6      704.3        685.1
Administrative Expenses 
Restructuring and Other Costs,  23.5       13.7       52.0         52.1
net
                                                                   
                                                                   
Operating Profit                229.3      116.5      535.1        375.6
Interest Expense                (25.6)     (26.8)     (81.9)       (91.7)
Loss on Extinguishment of       --         (0.1)      (0.3)        (19.6)
Debt 
Interest Income and Other       (1.8)      0.2        (1.9)        1.1
Income (Expense), net
Equity in Income of             1.2        0.8        2.9          2.9
Unconsolidated Entities
                                                                   
                                                                   
INCOME BEFORE INCOME TAXES      203.1      90.6       453.9        268.3
                                                                   
Income Tax (Expense) Benefit    (61.4)     (31.3)     100.3        (99.5)
                                                                   
                                                                   
CONSOLIDATED NET INCOME         141.7      59.3       554.2        168.8
                                                                   
                                                                   
Less: Net Income Attributable   (1.6)      (1.1)      (3.4)        (2.0)
to Noncontrolling Interests
                                                                   
                                                                   
NET INCOME ATTRIBUTABLE TO      $ 140.1    $ 58.2     $ 550.8      $ 166.8
ROCK-TENN COMPANY SHAREHOLDERS
                                                                   
                                                                   
Computation of diluted earnings per share under the two-class method (in
millions, except per share data):
                                                                   
Net income attributable to      $ 140.1    $ 58.2     $ 550.8      $ 166.8
Rock-Tenn Company shareholders
Less: Distributed and
undistributed income available  --         --         (0.1)        (0.6)
to participating securities
Distributed and undistributed
income available to Rock-Tenn   $ 140.1    $ 58.2     $ 550.7      $ 166.2
Company shareholders
                                                                   
Diluted weighted average        73.2       72.3       73.0         71.9
shares outstanding
                                                                   
Diluted earnings per share      $ 1.91     $ 0.81     $ 7.55       $ 2.31
                                                                   

 
ROCK-TENN COMPANY
SEGMENT INFORMATION
(UNAUDITED)
(IN MILLIONS)
                                                                   
                                                                   
                        FOR THE THREE MONTHS ENDED   FOR THE NINE MONTHS ENDED
                        June 30,        June 30,     June 30,     June 30,
                        2013            2012         2013         2012
                                                                   
                                                                   
NET SALES:                                                         
                                                                   
Corrugated Packaging     $ 1,719.5       $ 1,545.2    $ 4,917.8    $ 4,573.9
Consumer Packaging       644.8           628.9        1,882.6      1,896.9
Recycling                274.6           338.9        797.4        964.4
Intersegment             (190.6)         (209.8)      (537.5)      (581.4)
Eliminations
                                                                   
                                                                   
TOTAL NET SALES          $ 2,448.3       $ 2,303.2    $ 7,060.3    $ 6,853.8
                                                                   
                                                                   
SEGMENT INCOME:                                                    
                                                                   
Corrugated Packaging     $ 196.4         $ 73.4       $ 441.9      $ 251.4
^(1)
Consumer Packaging       76.0            83.7         205.6        248.4
Recycling                2.0             2.2          9.8          9.9
                                                                   
                                                                   
TOTAL SEGMENT INCOME     $ 274.4         $ 159.3      $ 657.3      $ 509.7
                                                                   
                                                                   
Restructuring and Other  (23.5)          (13.7)       (52.0)       (52.1)
Costs, net
Non-Allocated Expenses   (20.4)          (28.3)       (67.3)       (79.1)
Interest Expense         (25.6)          (26.8)       (81.9)       (91.7)
Loss on Extinguishment   --              (0.1)        (0.3)        (19.6)
of Debt 
Interest Income and
Other Income (Expense),  (1.8)           0.2          (1.9)        1.1
net
                                                                   
                                                                   
INCOME BEFORE INCOME     $ 203.1         $ 90.6       $ 453.9      $ 268.3
TAXES
                                                                   
                                                                   
(1) After $6.7 million of pre-tax losses at our Matane, Quebec containerboard
mill in the nine months ended 
 June 30, 2012 and after inventory step-up expense of $0.2 and     
$0.6 million pre-tax in the three and 
 nine months ended June                                            
30, 2012, respectively.
                                                                   

ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN MILLIONS)
                                                                  
                              FOR THE THREE MONTHS   FOR THE NINE MONTHS ENDED
                             ENDED
                             June 30,     June 30,   June 30,    June 30,
                             2013         2012       2013        2012
CASH FLOWS FROM OPERATING                                         
ACTIVITIES:
Consolidated net income       $ 141.7      $ 59.3     $ 554.2     $ 168.8
                                                                  
Adjustments to reconcile consolidated net income to               
net cash provided by operating activities:
Depreciation and              132.4        131.4      409.7       396.7
amortization
Deferred income tax           53.4         29.9       (115.3)     90.7
(benefit) expense
Loss on extinguishment of     --           0.1        0.3         19.6
debt 
Share-based compensation      13.0         9.3        35.7        21.1
expense
Loss (gain) on disposal of
plant and equipment and       0.9          (6.9)      (4.6)       (12.9)
other, net
Equity in income of           (1.2)        (0.8)      (2.9)       (2.9)
unconsolidated entities
Settlement of interest rate   --           --         --          (2.8)
swaps
Pension funding more than     (45.0)       (54.1)     (87.5)      (162.3)
expense
Impairment adjustments and    9.1          3.6        15.2        19.1
other non-cash items
 Changes in operating assets
and liabilities, net of                                           
acquisitions:
 Accounts receivable          (46.4)       (9.9)      (41.3)      63.8
 Inventories                  (17.2)       65.0       (64.2)      8.5
 Other assets                 --           (11.7)     (34.7)      (44.4)
 Accounts payable             (1.0)        (9.4)      34.0        (35.7)
 Income taxes                 4.9          (4.9)      (8.8)       10.6
 Accrued liabilities and      25.4         2.7        32.8        3.5
other
NET CASH PROVIDED BY          270.0        203.6      722.6       541.4
OPERATING ACTIVITIES
INVESTING ACTIVITIES:                                             
                                                                  
Capital expenditures          (113.1)      (146.1)    (307.1)     (348.3)
Cash paid for purchase of
businesses, net of cash       (6.2)        (33.0)     (6.2)       (120.5)
acquired
Investment in unconsolidated  --           --         --          (1.7)
entities
Return of capital from        0.2          0.5        0.8         1.6
unconsolidated entities
Proceeds from sale of
property, plant and           4.6          4.5        11.9        37.1
equipment 
Proceeds from property,
plant and equipment           2.0          10.2       7.7         10.2
insurance settlement
NET CASH USED FOR INVESTING   (112.5)      (163.9)    (292.9)     (421.6)
ACTIVITIES 
FINANCING ACTIVITIES:                                             
                                                                  
Proceeds from issuance of     --           --         --          748.9
notes
Additions to revolving        40.4         99.9       94.9        310.6
credit facilities
Repayments of revolving       (20.4)       (63.4)     (72.2)      (144.3)
credit facilities
Additions to debt             31.0         30.8       226.2       313.8
Repayments of debt            (196.6)      (110.6)    (620.4)     (1,319.3)
Debt issuance costs           (0.2)        (0.8)      (1.8)       (6.5)
Cash paid for debt            --           --         (0.1)       (13.9)
extinguishment costs
Issuances of common stock,
net of related minimum tax    1.6          2.1        1.0         0.4
withholdings
Excess tax benefits from      0.6          2.9        4.8         10.8
share-based compensation
Advances from (repayments     0.6          (0.7)      0.9         (0.3)
to) unconsolidated entity
Cash dividends paid to        (21.6)       (14.2)     (53.7)      (42.4)
shareholders
Cash distributions to         (1.6)        (0.4)      (3.9)       (0.4)
noncontrolling interests
NET CASH USED FOR FINANCING   (166.2)      (54.4)     (424.3)     (142.6)
ACTIVITIES
Effect of exchange rate
changes on cash and cash      (0.3)        (0.7)      (0.3)       0.6
equivalents
                                                                  
(DECREASE) INCREASE IN CASH   (9.0)        (15.4)     5.1         (22.2)
AND CASH EQUIVALENTS
                                                                  
Cash and cash equivalents at  51.3         34.9       37.2        41.7
beginning of period
Cash and cash equivalents at  $ 42.3       $ 19.5     $ 42.3      $ 19.5
end of period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW                              
INFORMATION:
Cash paid (received) during                                       
the period for:
Income taxes, net of refunds  $ 3.1        $ 3.6      $ 15.3      $ (13.0)
Interest, net of amounts      8.4          15.5       60.4        75.6
capitalized
                                                                  

 ROCK-TENN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN MILLIONS)
                                                                  
                                                     June 30,    September 30,
                                                     2013        2012
                                                                  
ASSETS                                                            
CURRENT ASSETS:                                                   
Cash and cash equivalents                             $ 42.3      $ 37.2
Restricted cash                                       9.3         40.6
Accounts receivable (net of allowances of $29.6 and   1,111.0     1,075.6
$26.9)
Inventories                                           879.0       861.9
Other current assets                                  291.9       174.5
TOTAL CURRENT ASSETS                                  2,333.5     2,189.8
                                                                  
Property, plant and equipment at cost:                            
Land and buildings                                    1,200.4     1,207.7
Machinery and equipment                               6,383.5     6,121.7
Transportation equipment                              14.7        13.6
Leasehold improvements                                24.9        20.0
                                                      7,623.5     7,363.0
Less accumulated depreciation and amortization        (2,065.0)   (1,751.6)
Net property, plant and equipment                     5,558.5     5,611.4
Goodwill                                              1,860.3     1,865.3
Intangibles, net                                      730.2       795.1
Other assets                                          228.1       225.5
TOTAL ASSETS                                          $ 10,710.6  $ 10,687.1
                                                                  
LIABILITIES AND EQUITY                                            
CURRENT LIABILITES:                                               
Current portion of debt                               $ 54.1      $ 261.3
Accounts payable                                      758.1       708.9
Accrued compensation and benefits                     212.8       211.4
Other current liabilities                             207.7       226.7
TOTAL CURRENT LIABILITIES                             1,232.7     1,408.3
                                                                  
Long-term debt due after one year                     2,972.3     3,151.2
Pension liabilities                                   1,367.4     1,493.1
Postretirement medical liabilities                    144.2       154.2
Deferred income taxes                                 871.6       888.8
Other long-term liabilities                           165.0       173.9
Redeemable noncontrolling interests                   11.5        11.4
                                                                  
Total Rock-Tenn Company shareholders' equity          3,945.6     3,405.7
Noncontrolling interests                              0.3         0.5
Total Equity                                          3,945.9     3,406.2
TOTAL LIABILITIES AND EQUITY                          $ 10,710.6  $ 10,687.1
                                                                  
                                                                  

Rock-Tenn Company Quarterly Statistics
                                                                    
Key Financial Statistics
(In Millions, Unless Otherwise Specified)
                                                                    
                             1^st    2^nd    3^rd Quarter 4^th     Fiscal Year
                             Quarter Quarter              Quarter
                                                                    
Net Income (Loss) Attributable to Rock-Tenn                         
Company Shareholders
2011                          $ 50.3  $ 37.0  $ (30.1)     $ 83.9   $ 141.1
2012                          76.7    31.9    58.2         82.3     249.1
2013                          86.0    324.7   140.1                 
                                                                    
Diluted Earnings (Loss) per                                         
Share
2011                          $ 1.27  $ 0.92  $ (0.60)     $ 1.17   $ 2.77
2012                          1.06    0.44    0.81         1.14     3.45
2013                          1.18    4.45    1.91                  
                                                                    
Depreciation & Amortization                                         
2011                          $ 36.7  $ 37.2  $ 73.5       $ 130.9  $ 278.3
2012                          132.7   132.6   131.4        137.6    534.3
2013                          138.1   139.2   132.4                 
                                                                    
Capital Expenditures                                                
2011                          $ 28.5  $ 30.3  $ 48.7       $ 91.9   $ 199.4
2012                          81.6    120.6   146.1        104.1    452.4
2013                          92.0    102.0   113.1                 
                                                                    
Mill System Operating Rates                                         
2011                         95.4%   98.3%   96.7%        99.1%    97.9%
2012                         96.4%   90.6%   92.4%        97.7%    94.3%
2013                         97.6%   96.1%   98.2%                  
                                                                    

Rock-Tenn Company Quarterly Statistics
                                                                              
Segment Operating Statistics                                                  
(Sales and Income In Millions, Shipments in Thousands of Tons Unless Otherwise
Specified)
                                                                              
               1^st           2^nd           3^rd           4^th             Fiscal
               Quarter        Quarter        Quarter        Quarter          Year
Corrugated
Packaging                                                                     
Segment Sales
2011            $ 198.3 ^      $ 209.4 ^      $ 734.5        $ 1,626.5 ^      $ 2,768.7
2012            1,522.8 ^      1,505.9 ^      1,545.2        1,597.3          6,171.2
2013            1,589.9        1,608.4 ^      1,719.5                         
Corrugated
Packaging                                                                     
Intersegment
Sales
2011            $ 9.4   ^      $ 11.1  ^      $ 21.3         $ 39.9    ^      $ 81.7
2012            32.3    ^      30.8    ^      28.7           29.8      ^      121.6
2013            28.2    ^      28.4    ^      26.7                     ^      
Corrugated
Packaging                                                                     
Segment Income
2011            $ 37.4  ^      $ 30.1  ^      $ 80.0   ^(1)  $ 153.6   ^(2)   $ 301.1
2012            109.7    ^(3)  75.4     ^(4)  73.6     ^(5)  112.8     ^(6)   371.5
2013            137.8   ^      107.7   ^      196.4   ^                ^      
Return On                                                                     
Sales
2011           18.9%    ^     14.4%    ^     10.9%     ^(1) 9.4%        ^(2) 10.9%
2012           7.2%      ^(3) 5.0%      ^(4) 4.8%      ^(5) 7.1%        ^(6) 6.0%
2013           8.7%     ^     6.7%     ^     11.4%    ^                ^      
                        ^              ^              ^                ^      
Containerboard                                                                
Shipments ^(7)
2011           247.4          243.9          850.7          1,914.4           3,256.4
2012           1,832.0        1,695.9        1,722.9        1,859.1           7,109.9
2013           1,816.6        1,721.1        1,830.1                          
                                                                              
Bleached
Linerboard                                                                    
Shipments
2011            --             --             12.9           29.8             42.7
2012            29.3           28.5           32.3           31.0             121.1
2013            30.2           30.9           32.6                            
                        ^              ^              ^                ^      
Pulp Shipments                                                                
2011            --             --             28.7           71.2             99.9
2012            75.0           61.5           73.8           77.0             287.3
2013            73.4           62.1           68.1                            
                        ^              ^              ^                ^      
Corrugated Containers                                                         
Shipments - BSF ^(8)
2011            2.6            2.9            9.1            19.3             33.9
2012            19.0           19.1           19.5           19.7             77.3
2013            19.2           18.9           19.7                            
                                                                              
Corrugated Containers
Per Shipping Day - MMSF                                                       
^(8)
2011            43.1           45.2           144.7          301.4            134.6
2012            317.2          298.3          309.3          313.0            309.3
2013            314.1          305.4          308.7                           
                                                                              
                                                                              
^(1) Excludes $55.4 million of inventory step-up expense.
^(2) Excludes $4.0 million of inventory step-up expense.
^(3) Excludes $0.4 million of inventory step-up expense.
^(4) Excludes $6.7 million of operating losses at the recently closed Matane, Quebec
containerboard mill.
^(5) Excludes $0.2 million of inventory step-up expense.
^(6) Excludes $0.2 million of inventory step-up expense.
^(7) Includes Kraft Paper of 7.3, 18.7, 2.7 and 0.5 in fiscal 3q11, 4q11, 1q12 and
2q12, respectively.
^(8) MMSF - millions of square feet and BSF - billons of square feet
                                                                              

Rock-Tenn Company Quarterly Statistics
                                                                    
Segment Operating Statistics
(Sales and Income In Millions, Shipments in Thousands of Tons Unless Otherwise
Specified)
                                                                    
                      1^st Quarter 2^nd Quarter 3^rd      4^th     Fiscal Year
                                                Quarter   Quarter
Consumer Packaging                                                  
Segment Sales
2011                   $ 544.5      $ 567.8      $ 579.6   $ 667.9  $ 2,359.8
2012                   620.4        647.6        628.9     660.6    2,557.5
2013                   611.3        626.5        644.8              
Consumer Packaging                                                  
Intersegment Sales
2011                   $ 3.8        $ 3.9        $ 6.8     $ 9.0    $ 23.5
2012                   7.6          6.2          6.1       5.3      25.2
2013                   6.4          6.1          6.4                
Consumer Packaging                                                  
Segment Income
2011                   $ 71.0       $ 61.0       $ 61.1    $ 82.1   $ 275.2
2012                   80.3         84.4         83.7      98.8     347.2
2013                   66.5         63.1         76.0               
Return on Sales                                                     
2011                  13.0%        10.7%        10.5%     12.3%    11.7%
2012                  12.9%        13.0%        13.3%     15.0%    13.6%
2013                  10.9%        10.1%        11.8%               
                                                                    
Recycled Paperboard                                                 
Shipments ^(1)
2011                  224.5        239.3        238.2     241.0    943.0
2012                  222.8        236.8        231.8     237.9    929.3
2013                  231.5        241.1        247.3               
                                                                    
Bleached Paperboard                                                 
Shipments
2011                  84.4         85.1         77.4      88.0     334.9
2012                  83.8         87.4         91.5      90.3      353.0
2013                  87.6         79.0         87.6                
                                                                    
Pulp Shipments                                                      
2011                  22.1         24.0         20.9      25.1     92.1
2012                  24.9         25.1         24.3      21.9     96.2
2013                  26.7         18.9         28.1                
                                                                    
Consumer Packaging Converting Shipments - BSF                       
^(2)
2011                   5.0          5.2          5.2       5.3      20.7
2012                   5.0          5.2          5.1       5.2      20.5
2013                   4.9          5.2          5.3                
                                                                    
Consumer Packaging Converting Per Shipping Day - MMSF ^             
(2)
2011                   82.2         83.0         82.1      82.5     82.4
2012                   83.5         81.0         80.6      83.1     82.0
2013                   81.0         83.9         82.3               
                                                                    
                                                                    
^(1) Recycled paperboard tons include coated and specialty paperboard,
including gypsum paperboard liner tons by Seven Hills Paperboard LLC, our
unconsolidated joint venture with Lafarge North America, Inc.
^(2) MMSF - millions of square feet and BSF - billons of square feet

 
Rock-Tenn Company Quarterly Statistics
                                                                    
Segment Operating Statistics
(Sales and Income In Millions, Shipments in Thousands of Tons       
Unless Otherwise Specified)
                                                                    
                           1^st       2^nd     3^rd      4^th      Fiscal Year
                           Quarter    Quarter  Quarter   Quarter
Recycling Segment Sales                                             
2011                        $ 41.9     $ 40.8   $ 147.4   $ 355.8   $ 585.9
2012                        329.4      296.1    338.9     264.4     1,228.8
2013                        251.8      271.0    274.6               
Recycling Intersegment                                              
Sales
2011                        $ 10.4     $ 10.1   $ 51.3    $ 137.8   $ 209.6
2012                        165.0      129.7    175.0     133.4     603.1
2013                        131.3      146.5    157.5               
Recycling Segment Income                                            
2011                        $ 2.3      $ 2.6    $ 4.6     $ 5.3     $ 14.8
2012                        3.5        4.2      2.2       (2.8)     7.1
2013                        4.3        3.5      2.0                 
Return on Sales                                                     
2011                       5.5%       6.4%     3.1%      1.5%      2.5%
2012                       1.1%       1.4%     0.6%      (1.1)%    0.6%
2013                       1.7%       1.3%     0.7%                 
                                                                    
Fiber Reclaimed and Brokered                                        
2011                       211.6      213.7    773.9     1,759.6   2,958.8
2012                       2,064.5    1,996.9  2,039.7   2,014.5   8,115.6
2013                       1,945.0    1,802.5  1,819.2              

Non-GAAP Financial Measures and Reconciliations

We have included financial measures that are not prepared in accordance with
GAAP. Any analysis of non-GAAP financial measures should be used only in
conjunction with results presented in accordance with GAAP. Below, we define
the non-GAAP financial measures, provide a reconciliation of each non-GAAP
financial measure to the most directly comparable financial measure calculated
in accordance with GAAP, and discuss the reasons that we believe this
information is useful to management and may be useful to investors. These
measures may differ from similarly captioned measures of other companies in
our industry. The following non-GAAP measures are not intended to be
substitutes for GAAP financial measures and should not be used as such.

Net Debt

We have defined the non-GAAP measure "net debt" to include the aggregate debt
obligations reflected in our consolidated balance sheet, less the hedge
adjustments resulting from fair value interest rate derivatives or swaps and
the balance of our cash and cash equivalents. 

Our management uses net debt, along with other factors, to evaluate our
financial condition. We believe that net debt is an appropriate supplemental
measure of financial condition because it provides a more complete
understanding of our financial condition before the impact of our decisions
regarding the appropriate use of cash and liquid investments. Set forth below
is a reconciliation of net debt to the most directly comparable GAAP measures,
Current Portion of Debt and Long-term Debt Due After One Year for the current
quarter and the prior quarter.

(In Millions)                                              June 30,  March 31,
                                                           2013      2013
                                                                      
Current Portion of Debt                                    $54.1     $29.7
Long-Term Debt Due After One Year                          2,972.3   3,149.3
Total Debt                                                 3,026.4   3,179.0
Less: Hedge Adjustments Resulting From Fair Value Interest ―         ―
Rate Derivatives or Swaps 
                                                           3,026.4   3,179.0
Less: Cash and Cash Equivalents                            (42.3)    (51.3)
Net Debt                                                   $ 2.984.1 $3,127.7

Segment EBITDA Margins

Our management uses "Segment EBITDA Margins", along with other factors, to
evaluate our segment performance against our peers. Management believes that
investors also use this measure to evaluate our performance relative to our
peers.

Set forth below is a reconciliation of Segment EBITDA margins to the most
directly comparable GAAP measures, Segment Income and Segment Sales for the
quarter ending June 30, 2013:

(In Millions, except                                               
percentages)
                                                                   
                      Corrugated  Consumer             Corporate   
                      Packaging   Packaging Recycling  / Other    Consolidated
Segment Sales         $1,719.5    $644.8    $274.6     $(190.6)   $2,448.3
                                                                   
Segment Income        $196.4      $76.0     $2.0                  $274.4
Depreciation and      101.0       25.0      3.2        3.2        132.4
Amortization 
EBITDA                $297.4      $101.0    $5.2                   
                                                                   
Segment EBITDA        17.3%       15.7%     1.9%                   
Margins 
                                                                   

Credit Agreement EBITDA and Total Funded Debt

"Credit Agreement EBITDA" is calculated in accordance with the definition
contained in our Credit Facility. Credit Agreement EBITDA is generally defined
as Consolidated Net Income plus: consolidated interest expense, income taxes
of the consolidated companies determined in accordance with GAAP, depreciation
and amortization expense of the consolidated companies determined in
accordance with GAAP, loss on extinguishment of debt and financing fees,
certain non-cash and cash charges incurred, including certain restructuring
and other costs, acquisition and integration costs, charges and expenses
associated with the write-up of inventory acquired and other items.

"Total Funded Debt" is calculated in accordance with the definition contained
in our Credit Facility. Total Funded Debt is generally defined as aggregate
debt obligations reflected in our balance sheet, less the hedge adjustments
resulting from terminated and existing fair value interest rate derivatives or
swaps, less certain cash, plus additional outstanding letters of credit not
already reflected in debt and certain guarantees.

Our management uses Credit Agreement EBITDA and Total Funded Debt to evaluate
compliance with our debt covenants and borrowing capacity available under our
Credit Facility. Management believes that investors also use these measures to
evaluate our compliance with our debt covenants and available borrowing
capacity. Borrowing capacity is dependent upon, in addition to other measures,
the "Credit Agreement Debt/EBITDA ratio" or the "Leverage Ratio," which is
defined as Total Funded Debt divided by Credit Agreement EBITDA. As of the
June 30, 2013 calculation, our Leverage Ratio was 2.29 times. Our maximum
permitted Leverage Ratio under the Credit Facility at June 30, 2013 was 3.50
times.

Set forth below is a reconciliation of Credit Agreement EBITDA for the twelve
months ended June 30, 2013, to the most directly comparable GAAP measure,
Consolidated Net Income: 

(In Millions)                  Twelve Months
                               Ended
                               June 30, 2013
                                
Consolidated Net Income        $637.6
Interest Expense, net          99.2
Income Taxes                   (62.9)
Depreciation and Amortization  547.3
Additional Permitted Charges   125.8
Credit Agreement EBITDA        $1,347.0

Set forth below is a reconciliation of Total Funded Debt to the most directly
comparable GAAP measures, Current portion of debt and Long-term debt due after
one year:

(In Millions, except ratio)                                           June 30,
                                                                      2013
                                                                       
Current Portion of Debt                                               $54.1
Long-Term Debt Due After One Year                                     2,972.3
Total Debt                                                            3,026.4
Less: Hedge Adjustments Resulting From Terminated Fair Value Interest ―
Rate Derivatives or Swaps 
Total Debt Less Hedge Adjustments                                     3,026.4
Plus: Letters of Credit, Guarantees and Other Adjustments             59.7
Total Funded Debt                                                     $3,086.1
                                                                       
Credit Agreement EBITDA for the Twelve Months Ended June 30, 2013     $1,347.0
                                                                       
Leverage Ratio                                                        2.29

Adjusted Net Income and Adjusted Earnings per Diluted Share

We also use the non-GAAP measures "adjusted net income" and "adjusted earnings
per diluted share". Management believes these non-GAAP financial measures
provide our board of directors, investors, potential investors, securities
analysts and others with useful information to evaluate the performance of the
Company because it excludes restructuring and other costs, net, and other
specific items that management believes are not indicative of the ongoing
operating results of the business. The Company and our board of directors use
this information to evaluate the Company's performance relative to other
periods. We believe that the most directly comparable GAAP measures to
adjusted net income and adjusted earnings per diluted share are Net income
attributable to Rock-Tenn Company shareholders and Earnings per Diluted Share,
respectively. Set forth at the beginning of this press release is a
reconciliation of adjusted earnings per diluted share to Earnings per diluted
share. Set forth below is a reconciliation of adjusted net income to Net
income attributable to Rock-Tenn Company shareholders:

                                                                    
                             Three Months Three Months Nine Months Nine Months
                             Ended        Ended        Ended       Ended
                             June 30,     June 30,     June 30,    June 30,
(In Millions)                2013         2012         2013        2012
                                                                    
Net income attributable to
Rock-Tenn Company            $140.1       $58.2        $550.8      $166.8
shareholders
                                                                    
Alternative fuel mixture
credit tax reserve           —            —            (252.9)     —
adjustment
Restructuring and other
costs and operating losses   18.0         10.0         39.9        43.7
and transition costs due to
plant closures
Loss on extinguishment of    —            —            0.2         12.3
debt
Acquisition inventory        —            0.2          —           0.4
step-up
                                                                    
Adjusted net income          $158.1       $68.4        $338.0      $223.2
                                                                    

CONTACT: RockTenn
         John Stakel, SVP-Treasurer, 678-291-7901
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