Breaking News

Tweet TWEET

RockTenn Reports Fourth Quarter Fiscal 2013 Earnings Up 111% Over the Prior Year Quarter

RockTenn Reports Fourth Quarter Fiscal 2013 Earnings Up 111% Over the Prior
Year Quarter

NORCROSS, Ga., Nov. 4, 2013 (GLOBE NEWSWIRE) -- RockTenn (NYSE:RKT) today
reported earnings for the quarter ended September 30, 2013 of $2.40 per
diluted share and adjusted earnings of $2.66 per diluted share. Adjusted
earnings per diluted share increased 91% over the prior year quarter.

                                                                         
                           Three Months Three     Twelve    Twelve
                                         Months    Months    Months
                           Ended       Ended     Ended    Ended
                           September    September September September
                            30,          30,       30,       30,
                           2013         2012      2013      2012
                                                         
Earnings per diluted share  $2.40        $1.14     $9.95     $3.45
                                                         
Alternative fuel mixture
credit tax reserve          ―            ―         (3.46)    ―
adjustment
Restructuring and other
costs and operating losses  0.26         0.19      0.81      0.80
and transition costs due to
plant closures
Loss on extinguishment of   ―            0.06      ―         0.23
debt
                                                         
Adjusted earnings per       $2.66        $1.39     $7.30     $4.48
diluted share

Fourth Quarter Results

  oNet sales of $2,485 million for the fourth quarter of fiscal 2013
    increased $131 million compared to the fourth quarter of fiscal 2012.
    Segment income of $332 million increased $123 million or 59% over the
    prior year quarter.
  oRockTenn's restructuring and other costs and operating losses and
    transition costs due to plant closures for the fourth quarter of fiscal
    2013 were $0.26 per diluted share after-tax. These costs primarily
    consisted of $19 million of pre-tax facility closure charges and $7
    million of pre-tax acquisition and integration costs. The pre-tax facility
    closure charges primarily consisted of severance and other employee costs,
    equipment impairments and carrying costs for facilities acquired in the
    Smurfit-Stone acquisition that were partially offset by gains on the sale
    of previously closed facilities.

Chief Executive Officer's Statement

RockTenn Chief Executive Officer, Steve Voorhees, stated, "We are pleased with
our record adjusted earnings and cash flow in the September quarter and for
all of fiscal 2013. We expect to continue to improve our business performance
and generate strong free cash flow during fiscal 2014. With our leverage ratio
now below two times for the first time since March 2011, we have significant
flexibility to take advantage of opportunities to invest in our business and
return capital to shareholders through dividends and stock repurchases."

Segment Results

Containerboard and Paperboard Tons Shipped

Containerboard shipments of approximately 1,825,000 tons decreased
approximately 34,000 tons compared to the prior year quarter due to lower
domestic sales. Consumer Packaging segment paperboard and pulp shipments of
approximately 366,000 tons increased approximately 16,000 tons over the prior
year quarter.

Corrugated Packaging Segment

Corrugated Packaging segment net sales increased $147 million to $1,744
million and segment income increased $125 million to $238 million in the
fourth quarter of fiscal 2013 compared to the prior year quarter. The
increased sales and earnings are primarily related to higher selling prices
and increased synergies that were partially offset by higher commodity and
other costs.In addition, segment income included a $12 million gain related
to the recording of additional value of spare parts at our containerboard
mills acquired in the Smurfit-Stone acquisition and a $9 million gain related
to the termination of a steam supply contract at our Solvay recycled
containerboard mill, net of boiler start-up costs.Corrugated Packaging
segment EBITDA margin was 20.0% for the fourth quarter of fiscal 2013 up 630
basis points from the 13.7% in the prior year quarter, the highest such
segment EBITDA margin since the Smurfit-Stone acquisition and primarily
represents higher pricing, increased synergy realization and continued
operating performance improvements.

Consumer Packaging Segment

Consumer Packaging segment net sales increased $11 million and segment income
declined $10 million in the fourth quarter of fiscal 2013 compared to the
prior year quarter. Segment income in the fourth quarter of fiscal 2012
included $18 million received in connection with the termination and
settlement of a paperboard supply agreement, net of legal fees in the period,
and segment income in the current year fourth quarter included approximately
$8 million related to a partial insurance settlement of property damage claims
associated with the prior year Demopolis turbine failure.Additionally,
segment income was impacted primarily by higher commodity and other costs that
were partially offset by generally higher selling prices and volumes. Consumer
Packaging segment EBITDA margin was 17.0% for the fourth quarter of fiscal
2013, driven by higher SBS, URB and pulp pricing and continued operating
execution.

Recycling Segment

Recycling segment net sales increased $12 million over the prior year fourth
quarter to $276 million primarily as the impact of increased selling prices
exceeded the impact of lower volumes. Segment income increased $7 million in
the fourth quarter of fiscal 2013 compared to the prior year quarter primarily
due to the impact of cost structure improvements.

Cash Provided From Operating, Financing and Investing Activities

Cash provided by operations was $310 million in the fourth quarter of fiscal
2013, after pension funding in excess of expense of $80 million. We reduced
net debt (as defined) by $176 million in the September quarter to $2.81
billion and our Leverage Ratio (as defined) was 1.95 times.Total debt was
$2.84 billion at September 30, 2013. We invested $133 million in capital
expenditures and returned $22 million in dividends to our shareholders.

Capital Allocation

The RockTenn board of directors approved an increase in the Company's
available share repurchase authorization from 1.8 million to 5.0 million
shares of Class A common stock, to be completed from time to time at the
Company's discretion.In October 2013, the board authorized an increase of our
dividend to $0.35 per share of Class A common stock payable on November 18,
2013, a 16.7% increase from the dividend declared in July 2013 and
representing an annualized rate of $1.40 per share.

Conference Call

We will host a conference call to discuss our results of operations for the
fourth quarter of fiscal 2013 and other topics that may be raised during the
discussion at 9:00 a.m., Eastern Time, on November 5, 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 November 19, 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 we expect to continue to improve our business
performance and generate strong free cash flow during fiscal 2014, as well as
having significant flexibility to take advantage of opportunities to invest in
our business and return capital to shareholders through dividends and stock
repurchases. 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 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 ENDED  FOR THE TWELVE MONTHS
                                                         ENDED
                            September 30, September 30, September  September
                                                         30,        30,
                            2013          2012          2013       2012
                                                                
                                                                
NET SALES                    $2,485.1    $2,353.8    $9,545.4 $9,207.6
                                                                
Cost of Goods Sold          1,930.0      1,933.9      7,698.9   7,674.9
                                                                
                                                                
Gross Profit                 555.1        419.9        1,846.5   1,532.7
Selling, General and         250.0        242.4        954.3     927.5
Administrative Expenses
Restructuring and Other      26.0         23.1         78.0      75.2
Costs, net
                                                                
                                                                
Operating Profit             279.1        154.4        814.2     530.0
Interest Expense             (25.0)       (28.0)       (106.9)   (119.7)
Loss on Extinguishment of    --          (6.3)        (0.3)     (25.9)
Debt
Interest Income and Other    1.0          0.2          (0.9)     1.3
Income (Expense), net
Equity in Income of          1.7          0.5          4.6       3.4
Unconsolidated Entities
                                                                
                                                                
INCOME BEFORE INCOME TAXES   256.8        120.8        710.7     389.1
                                                                
Income Tax (Expense) Benefit (78.5)       (37.4)       21.8      (136.9)
                                                                
                                                                
CONSOLIDATED NET INCOME      178.3        83.4         732.5     252.2
                                                                
                                                                
Less: Net Income
Attributable to              (1.8)        (1.1)        (5.2)     (3.1)
Noncontrolling Interests
                                                                
                                                                
NET INCOME ATTRIBUTABLE TO
ROCK-TENN COMPANY            $176.5      $82.3       $727.3   $249.1
SHAREHOLDERS
                                                                
                                                                
Computation of diluted earnings per share under the two-class method (in
millions, except per share data):
                                                                
Net income attributable to                                       
Rock-Tenn Company
shareholders                $176.5      $82.3       $727.3   $249.1
Less:Distributed and
undistributed income         --          (0.1)        (0.2)     (0.7)
available to participating
securities
Distributed and
undistributed income         $176.5      $82.2       $727.1   $248.4
available to Rock-Tenn
Company shareholders
                                                                
Diluted weighted average     73.4         72.4         73.1      72.1
shares outstanding
                                                                
Diluted earnings per share   $2.40       $1.14       $9.95    $3.45



ROCK-TENN COMPANY
SEGMENT INFORMATION
(UNAUDITED)
(IN MILLIONS)
                                                             
                                                             
                     FOR THE THREE MONTHS ENDED   FOR THE TWELVE MONTHS ENDED
                     September 30,  September 30, September 30, September 30,
                     2013           2012          2013          2012
                                                             
                                                             
NET SALES:                                                    
                                                             
Corrugated Packaging  $1,744.3     $1,597.3    $6,662.1    $6,171.2
Consumer Packaging    671.5         660.6        2,554.1      2,557.5
Recycling             276.0         264.4        1,073.4      1,228.8
Intersegment          (206.7)       (168.5)      (744.2)      (749.9)
Eliminations
                                                             
TOTAL NET SALES       $2,485.1     $2,353.8    $9,545.4    $9,207.6
                                                             
SEGMENT INCOME:                                               
                                                             
Corrugated Packaging  $238.0       $112.6      $679.9      $364.0
^(1)
Consumer Packaging   89.0          98.8         294.6        347.2
Recycling             4.6           (2.8)        14.4         7.1
                                                             
TOTAL SEGMENT INCOME  $331.6       $208.6      $988.9      $718.3
                                                             
Restructuring and     (26.0)        (23.1)       (78.0)       (75.2)
Other Costs, net
Non-Allocated         (24.8)        (30.6)       (92.1)       (109.7)
Expenses
Interest Expense      (25.0)        (28.0)       (106.9)      (119.7)
Loss on
Extinguishment of     --           (6.3)        (0.3)        (25.9)
Debt
Interest Income and
Other Income          1.0           0.2          (0.9)        1.3
(Expense), net
                                                             
INCOME BEFORE INCOME  $256.8       $120.8      $710.7      $389.1
TAXES
                                                             
(1)After $6.7 million of pre-tax losses at our Matane, Quebec containerboard
mill in the twelve months ended September 30, 2012 and after inventory step-up
expense of $0.2 and $0.8 million pre-tax in the three andtwelve months ended
September 30, 2012, respectively.


ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN MILLIONS)
                                                             
                          FOR THE THREE MONTHS ENDED FOR THE TWELVE MONTHS
                                                       ENDED
                          September 30, September 30, September September 30,
                                                       30,
                          2013          2012          2013      2012
                                                             
CASH FLOWS FROM OPERATING                                     
ACTIVITIES:
Consolidated net income    $178.3      $83.4       $732.5  $252.2
Adjustments to reconcile
consolidated net income to                                    
net cash provided by
operating activities:
Depreciation and           142.5        137.6        552.2    534.3
amortization
Deferred income tax        71.0         32.7         (44.3)   123.4
expense (benefit)
Loss on extinguishment of  --          6.3          0.3      25.9
debt
Share-based compensation   10.8         8.1          46.5     29.2
expense
(Gain) loss on disposal of
plant and equipment and    (9.3)        2.9          (13.9)   (10.0)
other, net
Equity in income of        (1.7)        (0.5)        (4.6)    (3.4)
unconsolidated entities
Settlement of interest     --          --          --      (2.8)
rate swaps
Pension and other
postretirement funding     (79.6)       (143.1)      (167.1)  (305.4)
more than expense
Impairment adjustments and 6.0          10.1         21.2     29.2
other non-cash items
Changes in operating
assets and liabilities,                                       
net of acquisitions:
Accounts receivable       (21.9)       (8.3)        (63.2)   55.5
Inventories               (58.6)       (1.4)        (122.8)  7.1
Other assets              21.6         26.6         (13.1)   (17.8)
Accounts payable          53.5         (42.1)       87.5     (77.8)
Income taxes              (5.0)        2.7          (13.8)   13.3
Accrued liabilities and   2.3          0.3          35.1     3.8
other
                                                             
NET CASH PROVIDED BY       309.9        115.3        1,032.5  656.7
OPERATING ACTIVITIES
                                                             
INVESTING ACTIVITIES:                                         
                                                             
Capital expenditures       (133.3)      (104.1)      (440.4)  (452.4)
Cash paid for the purchase --          (17.0)       --      (17.0)
of a leased facility
Cash paid for purchase of
businesses, net of cash    (0.1)        (5.1)        (6.3)    (125.6)
acquired
Investment in              (0.1)        --          (0.1)    (1.7)
unconsolidated entities
Return of capital from     0.2          0.2          1.0      1.8
unconsolidated entities
Proceeds from sale of
property, plant and        14.9         3.4          26.8     40.5
equipment
Proceeds from property,
plant and equipment        7.7          --          15.4     10.2
insurance settlement
                                                             
NET CASH USED FOR          (110.7)      (122.6)      (403.6)  (544.2)
INVESTING ACTIVITIES
                                                             
FINANCING ACTIVITIES:                                         
                                                             
Proceeds from issuance of  --          693.3        --      1,442.2
notes
Additions to revolving     4.1          437.5        99.0     748.1
credit facilities
Repayments of revolving    (74.0)       (615.5)      (146.2)  (759.8)
credit facilities
Additions to debt          50.8         12.8         277.0    326.6
Repayments of debt         (167.0)      (484.3)      (787.4)  (1,803.6)
Debt issuance costs        (0.2)        (9.7)        (2.0)    (16.2)
Cash paid for debt         --          (0.1)        (0.1)    (14.0)
extinguishment costs
Issuances of common stock,
net of related minimum tax 2.5          4.8          3.5      5.2
withholdings
Excess tax benefits from   1.2          (0.8)        6.0      10.0
share-based compensation
Advances from              0.3          0.5          1.2      0.2
unconsolidated entity
Cash dividends paid to     (21.6)       (14.1)       (75.3)   (56.5)
shareholders
Cash distributions to      (1.0)        (0.4)        (4.9)    (0.8)
noncontrolling interests
                                                             
NET CASH (USED FOR)
PROVIDED BY FINANCING      (204.9)      24.0         (629.2)  (118.6)
ACTIVITIES
                                                             
Effect of exchange rate
changes on cash and cash   (0.2)        1.0          (0.5)    1.6
equivalents
                                                             
(DECREASE) INCREASE IN     (5.9)        17.7         (0.8)    (4.5)
CASH AND CASH EQUIVALENTS
                                                             
Cash and cash equivalents  42.3         19.5         37.2     41.7
at beginning of period
                                                             
Cash and cash equivalents  $36.4       $37.2       $36.4   $37.2
at end of period
                                                             
SUPPLEMENTAL DISCLOSURE OF                                    
CASHFLOW INFORMATION:
Cash paid (received)                                          
during the period for:
Income taxes, net of       $6.7        $3.4        $22.0   $(9.6)
refunds
Interest, net of amounts   38.4         39.2         98.8     114.8
capitalized



ROCK-TENN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN MILLIONS)
                                                               
                                                  September 30, September 30,
                                                  2013          2012
                                                               
ASSETS
CURRENT ASSETS:                                                 
Cash and cash equivalents                          $36.4       $37.2
Restricted cash                                    9.3          40.6
Accounts receivable (net of allowances of $26.8    1,134.9      1,075.6
and $26.9)
Inventories                                        937.9        861.9
Other current assets                               297.9        174.5
                                                               
TOTAL CURRENT ASSETS                               2,416.4      2,189.8
                                                               
Property, plant and equipment at cost:                          
Land and buildings                                 1,203.1      1,207.7
Machinery and equipment                            6,467.8      6,121.7
Transportation equipment                           13.8         13.6
Leasehold improvements                             24.7         20.0
                                                  7,709.4      7,363.0
Less accumulated depreciation and amortization     (2,154.7)    (1,751.6)
Net property, plant and equipment                  5,554.7      5,611.4
Goodwill                                           1,862.1      1,865.3
Intangibles, net                                   699.4        795.1
Other assets                                       200.8        225.5
                                                               
TOTAL ASSETS                                       $10,733.4   $10,687.1
                                                               
LIABILITIES AND EQUITY                                          
CURRENT LIABILITIES:                                            
Current portion of debt                            $2.9        $261.3
Accounts payable                                   802.1        708.9
Accrued compensation and benefits                  249.0        211.4
Other current liabilities                          189.4        226.7
                                                               
TOTAL CURRENT LIABILITIES                          1,243.4      1,408.3
                                                               
Long-term debt due after one year                  2,841.9      3,151.2
Pension liabilities                                975.2        1,493.1
Postretirement medical liabilities                 118.3        154.2
Deferred income taxes                              1,063.1      888.8
Other long-term liabilities                        165.4        173.9
Redeemable noncontrolling interests                13.3         11.4
                                                               
Total Rock-Tenn Company shareholders' equity       4,312.3      3,405.7
Noncontrolling interests                           0.5          0.5
Total Equity                                       4,312.8      3,406.2
                                                               
TOTAL LIABILITIES AND EQUITY                       $10,733.4   $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       176.5   727.3
                                                              
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        2.40    9.95
                                                              
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       142.5   552.2
                                                              
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       133.3   440.4
                                                              
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%        97.1%    97.2%

                                                                       
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 Net
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       1,744.3         6,662.1
Corrugated
Packaging                                                              
Intersegment
Net 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          30.1      ^     113.4
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   ^     238.0     ^     679.9
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%    ^     13.6%      ^     10.2%
                      ^            ^            ^               ^     
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        1,825.2          7,193.0
                                                                      
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          33.6            127.3
                      ^            ^            ^               ^     
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          68.7            272.3
                      ^            ^            ^               ^     
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          19.3            77.1
                                                                      
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         306.2           308.6
                                                                      
                      ^            ^            ^               ^     
^(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      3^rd      4^th     Fiscal Year
                                      Quarter   Quarter   Quarter
Consumer Packaging                                             
Segment Net 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    671.5   2,554.1
Consumer Packaging                                             
Intersegment Net 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      6.7     25.6
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     89.0    294.6
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%     13.3%    11.5%
                                                              
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     253.5    973.4
                                                              
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      85.4     339.6
                                                              
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      26.8     100.5
                                                              
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      5.3     20.7
                                                              
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     84.3    82.9
                                                              
^(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 Quarter  4^th     Fiscal Year
                         Quarter   Quarter                Quarter
Recycling Segment Net 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        276.0   1,073.4
Recycling Intersegment Net 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        169.9   605.2
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          4.6     14.4
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%          1.7%     1.3%
                                                              
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       1,826.6  7,393.3

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, if
any, 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)                      September 30, June 30,
                                  2013          2013
                                               
Current Portion of Debt           $2.9          $54.1
Long-Term Debt Due After One Year 2,841.9       2,972.3
TotalDebt                        2,844.8       3,026.4
Less:Cash and Cash Equivalents   (36.4)        (42.3)
Net Debt                          $2,808.4      $2,984.1

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 Net Sales for
the quarter ending September 30, 2013:

(In Millions, except                                          
percentages)
                                                             
                      Corrugated Consumer  Recycling Corporate  Consolidated
                       Packaging  Packaging            /Other
                                                             
Segment Net Sales     $1,744.3   $671.5    $276.0     $(206.7) $2,485.1
                                                             
Segment Income        $238.0     $89.0     $4.6                 $331.6
Depreciation and       110.9      25.0      3.0        3.6        142.5
Amortization
EBITDA                $348.9     $114.0    $7.6                 
                                                             
Segment EBITDA         20.0%      17.0%     2.8%                 
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, if any, 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
September 30, 2013 calculation, our Leverage Ratio was 1.95 times.Our maximum
permitted Leverage Ratio under the Credit Facility at September 30, 2013 was
3.50 times.

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

(In Millions)                  Twelve Months
                              Ended
                              September 30, 2013
                              
Consolidated Net Income       $732.5
Interest Expense, net         96.4
Income Taxes                  (21.8)
Depreciation and Amortization 552.2
Additional Permitted Charges  124.0
Credit Agreement EBITDA       $1,483.3

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)                               September 30,
                                                         2013
                                                         
Current Portion of Debt                                   $2.9
Long-Term Debt Due After One Year                         2,841.9
TotalDebt                                                2,844.8
Plus:Letters of Credit, Guarantees and Other Adjustments 55.0
Total Funded Debt                                         $2,899.8
                                                         
Credit Agreement EBITDA for the Twelve Months Ended       
September 30, 2013                                        $1,483.3
                                                         
Leverage Ratio                                            1.95

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     Twelve    Twelve
                                         Months    Months    Months
                           Ended       Ended     Ended    Ended
                           September    September September September
                            30,          30,       30,       30,
(In Millions)               2013         2012      2013      2012
                                                         
Net income attributable to
Rock-Tenn Company           $176.5       $82.3     $727.3    $249.1
shareholders
                                                         
Alternative fuel mixture
credit tax reserve          —            —         (252.9)   —
adjustment
Restructuring and other
costs and operating losses  19.1         14.0      59.1      57.8
and transition costs due to
plant closures
Loss on extinguishment of   —            4.0       0.2       16.3
debt
Acquisition inventory       —            0.1       —         0.5
step-up
                                                         
Adjusted net income         $195.6       $100.4    $533.7    $323.7

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