PACKAGING CORP OF AMERICA
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
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Reconciliations of Non-GAAP Financial Measures to Reported Amounts
Net income excluding special items, EBITDA, and EBITDA excluding special items are non-GAAP financial measures. Management excludes special items, as it believes that these items are not necessarily reflective of the ongoing operations of our business. These measures are presented because they provide a means to evaluate the performance of our segments and our Company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. Any analysis of non-GAAP financial measures should be done in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. Reconciliations of the non-GAAP measures to the most comparable measure reported in accordance with GAAP for the years ended December 31, 2023 and 2022 follow (dollars in millions):
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Incomebefore Taxes | IncomeTaxes | NetIncome | Incomebefore Taxes | IncomeTaxes | NetIncome | |
| As reported in accordance with GAAP | $1,014.1 | $(248.9) | $765.2 | $1,364.8 | $(335.0) | $1,029.8 |
| Special items: | ||||||
| Facilities closure and other costs (a) | 14.4 | (3.6) | 10.8 | 0.7 | (0.2) | 0.5 |
| Jackson mill conversion-related activities (b) | 11.1 | (2.7) | 8.4 | 14.1 | (3.5) | 10.6 |
| Acquisition and integration related activities (c) | — | — | — | (1.0) | 0.3 | (0.7) |
| Total special items | 25.5 | (6.3) | 19.2 | 13.8 | (3.4) | 10.4 |
| Excluding special items | $1,039.6 | $(255.2) | $784.4 | $1,378.6 | $(338.4) | $1,040.2 |
(a)
For 2023, includes charges related to the closure of corrugated products facilities and design centers. These costs were partially offset by a gain on sale of a corrugated products facility. For 2022, includes charges consisting of closure costs related to corrugated products facilities. These costs were partially offset by insurance proceeds received for a natural disaster at one of the corrugated products facilities, a gain on sale of assets related to a corrugated products facility, and a favorable lease buyout for a closed corrugated products facility.
(b)
For 2023 and 2022, includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
(c)
Includes income from a favorable inventory adjustment related to the December 2021 Advance Packaging Corporation acquisition, partially offset by acquisition and integration related costs.
The following table reconciles net income to EBITDA and EBITDA excluding special items for the periods indicated (dollars in millions):
| Year Ended December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Net income | $765.2 | $1,029.8 |
| Non-operating pension expense (income) | 7.7 | (14.5) |
| Interest expense, net | 53.3 | 70.4 |
| Provision for income taxes | 248.9 | 335.0 |
| Depreciation, amortization, and depletion | 517.7 | 456.8 |
| EBITDA | $1,592.8 | $1,877.5 |
| Special items: | ||
| Facilities closure and other costs | $8.9 | $0.4 |
| Jackson mill conversion-related activities | 2.1 | 8.6 |
| Acquisition and integration related activities | — | (1.0) |
| EBITDA excluding special items | $1,603.8 | $1,885.5 |
The following table reconciles segment income (loss) to EBITDA and EBITDA excluding special items (dollars in millions):
| Year Ended December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Packaging | ||
| Segment income | $1,074.3 | $1,423.7 |
| Depreciation, amortization, and depletion | 472.5 | 420.2 |
| EBITDA | 1,546.8 | 1,843.9 |
| Facilities closure and other costs | 8.9 | 0.4 |
| Jackson mill conversion-related activities | — | 5.3 |
| Acquisition and integration related activities | — | (1.0) |
| EBITDA excluding special items | $1,555.7 | $1,848.6 |
| Paper | ||
| Segment income | $118.9 | $103.0 |
| Depreciation, amortization, and depletion | 29.6 | 26.1 |
| EBITDA | 148.5 | 129.1 |
| Jackson mill conversion-related activities | 2.1 | 3.3 |
| EBITDA excluding special items | $150.6 | $132.4 |
| Corporate and Other | ||
| Segment loss | $(118.1) | $(106.0) |
| Depreciation, amortization, and depletion | 15.6 | 10.5 |
| EBITDA | (102.5) | (95.5) |
| EBITDA excluding special items | $(102.5) | $(95.5) |
| EBITDA | $1,592.8 | $1,877.5 |
| EBITDA excluding special items | $1,603.8 | $1,885.5 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.