PCA (PKG) Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 11:33 AM CST 34 min read

Image source: The Motley Fool.

Wednesday, October 23, 2024 astatine 9 a.m. ET

• Chairman and Chief Executive Officer — Mark Kowlzan

• Executive Vice President, Packaging — Tom Hassfurther

• Chief Financial Officer — Robert Mundy

Mark Kowlzan: Thank you, Jamie. Good morning, everyone, and convey you each for participating successful Packaging Corporation of America's 3rd 4th 2024 net merchandise league call. Again, I'm Mark Kowlzan, Chairman and CEO of PCA. With maine connected the telephone contiguous is Tom Hassfurther, Executive Vice President, who runs our packaging business, and Bob Mundy, our Chief Financial Officer. As usual, I'll statesman the telephone with an overview of the 3rd 4th results, and past I'll crook the telephone implicit to Tom and Bob, who volition supply further details and past I'll wrapper things up and past we'd beryllium gladsome to instrumentality questions later. Yesterday, we reported 3rd 4th nett income of $238 million, oregon $2.64 per share.

Excluding peculiar items, 3rd 4th 2024 nett income was $239 million, oregon $2.65 per stock compared to the 3rd 4th of 2023 nett income of $185 cardinal oregon $2.05 per share. Third 4th nett income were $2.2 cardinal successful 2024 and $1.9 cardinal successful 2023. Total institution EBITDA for the 3rd 4th excluding peculiar items was $461 cardinal successful 2024 and $388 cardinal successful 2023. Details of peculiar items for some the 3rd 4th of 2024 and 2023 were included successful the schedules that accompanied our net property release.

Excluding peculiar items, the $0.60 per stock summation successful 3rd 4th 2024 net compared to the 3rd 4th of 2023 was chiefly driven by higher measurement of $0.94 and prices and premix $0.03 successful the Packaging segment, higher measurement successful the Paper conception for $0.03, little freight and logistics expenses of $0.09, little scheduled outage expenses for $0.06 and little involvement disbursal for $0.05. These items were partially offset by little prices and premix successful the Paper conception for $0.02, higher operating and converting costs, $0.51, and higher depreciation expense, $0.05, and different expenses, $0.02.

The results were $0.20 supra our 3rd 4th guidance of $2.45 per share, chiefly owed to higher measurement successful our Packaging and Paper segments and higher prices and premix successful the Packaging segment. Looking astatine our Packaging business, EBITDA excluding peculiar items successful the 3rd 4th of 2024 of $446 cardinal with income of $2 cardinal resulted successful a borderline of 22.2% versus past year's EBITDA of $374 cardinal with income of $1.8 cardinal and a 21.3% margin. The operational benefits of our superior spending programme and the continued large absorption and execution by our sales, lawsuit service, mill and corrugated products works employees proceed to present awesome results.