PACKAGING CORP OF AMERICA
For the period ended Dec 31, 2024. Filed Feb 27, 2025.
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FY2024 · Filed Feb 27, 2025
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Non-GAAP Financial Measures
Earnings per diluted share excluding special items, net income excluding special items, EBITDA, EBITDA excluding special items, segment EBITDA, and segment 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 are detailed below.
The following table reconciles earnings per diluted share to earnings per diluted share excluding special items for the periods indicated (dollars in millions):
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Earnings per diluted share, as reported in accordance with GAAP | $8.93 | $8.48 |
| Special items: | ||
| Jackson mill conversion-related activities (a) | 0.08 | 0.09 |
| Facilities closure and other costs (b) | 0.03 | 0.12 |
| Total special items | 0.11 | 0.21 |
| Earnings per diluted share, excluding special items | $9.04 | $ 8.70 (c) |
(a)
For 2024 and 2023, includes $9.7 million and $11.1 million, respectively, of 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.
(b)
For 2024, includes $2.7 million of charges related to the closure of corrugated products facilities, partially offset by income primarily related to a favorable lease buyout for a closed corrugated products facility. For 2023, includes $14.4 million of charges related to the closure of corrugated products facilities and design centers, partially offset by a gain on sale of a corrugated products facility.
(c)
Amount may not foot due to rounding.
The following table reconciles net income to net income excluding special items for the periods indicated (dollars in millions):
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| IncomebeforeTaxes | IncomeTaxes | NetIncome | IncomebeforeTaxes | IncomeTaxes | NetIncome | |
| As reported in accordance with GAAP | $1,064.4 | $(259.3) | $805.1 | $1,014.1 | $(248.9) | $765.2 |
| Special items: | ||||||
| Jackson mill conversion-related activities (d) | 9.7 | (2.4) | 7.3 | 11.1 | (2.7) | 8.4 |
| Facilities closure and other costs (e) | 2.7 | (0.6) | 2.1 | 14.4 | (3.6) | 10.8 |
| Total special items | 12.4 | (3.0) | 9.4 | 25.5 | (6.3) | 19.2 |
| Excluding special items | $1,076.8 | $(262.3) | $814.5 | $1,039.6 | $(255.2) | $784.4 |
(d)
For 2024 and 2023, 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.
(e)
For 2024, includes charges related to the closure of corrugated products facilities. These costs were partially offset by income primarily related to a favorable lease buyout for a closed corrugated products facility during the first quarter of 2024. 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.
The following table reconciles net income to EBITDA and EBITDA excluding special items for the periods indicated (dollars in millions):
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net income | $805.1 | $765.2 |
| Non-operating pension (income) expense | (4.5) | 7.7 |
| Interest expense, net | 41.4 | 53.3 |
| Provision for income taxes | 259.3 | 248.9 |
| Depreciation, amortization, and depletion | 525.6 | 517.7 |
| EBITDA | $1,626.9 | $1,592.8 |
| Special items: | ||
| Jackson mill conversion-related activities | 8.3 | 2.1 |
| Facilities closure and other costs | 1.9 | 8.9 |
| EBITDA excluding special items | $1,637.1 | $1,603.8 |
The following table reconciles segment operating income (loss) to segment EBITDA and segment EBITDA excluding special items (dollars in millions):
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Packaging | ||
| Segment operating income | $1,101.5 | $1,074.3 |
| Depreciation, amortization, and depletion | 490.1 | 472.5 |
| EBITDA | 1,591.6 | 1,546.8 |
| Facilities closure and other costs | 1.9 | 8.9 |
| Jackson mill conversion-related activities | 4.0 | — |
| EBITDA excluding special items | $1,597.5 | $1,555.7 |
| Paper | ||
| Segment operating income | $129.7 | $118.9 |
| Depreciation, amortization, and depletion | 19.5 | 29.6 |
| EBITDA | 149.2 | 148.5 |
| Jackson mill conversion-related activities | 4.3 | 2.1 |
| EBITDA excluding special items | $153.5 | $150.6 |
| Corporate and Other | ||
| Segment operating loss | $(129.9) | $(118.1) |
| Depreciation, amortization, and depletion | 16.0 | 15.6 |
| EBITDA | (113.9) | (102.5) |
| EBITDA excluding special items | $(113.9) | $(102.5) |
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