Packaging Corp. (PKG) came out with quarterly earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.77%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $1.63 per share when it actually produced earnings of $1.72, delivering a surprise of ...

Packaging Corporation of America Q2 2024 Earnings Release [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported Q2 2024 net sales of $2.1 billion and adjusted EPS of $2.20, exceeding guidance Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,075.3 M | $1,952.1 M | +6.3% | | Net Income | $198.9 M | $202.7 M | -1.9% | | Diluted EPS (Reported) | $2.21 | $2.24 | ($0.03) | | Diluted EPS (Excluding Special Items) | $2.20 | $2.31 | ($0.11) | - The Q2 2024 diluted EPS of **$2.20** (excluding special items) was **$0.13 above the company's guidance** of $2.07 per share, driven by higher volume in the Packaging segment and lower costs[11](index=11&type=chunk) - The year-over-year decrease of $0.11 in adjusted EPS was primarily caused by lower prices and mix in both Packaging ($-0.87) and Paper ($-0.07) segments, partially offset by higher volumes[1](index=1&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Strong volume growth in the Packaging segment set a new production record, though income declined for both segments Segment Performance (Q2 2024 vs Q2 2023, $ in millions) | Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) | Segment Income (Excl. Special Items, Q2 2024) | Segment Income (Excl. Special Items, Q2 2023) | | :--- | :--- | :--- | :--- | :--- | | Packaging | $1,908.3 | $1,790.3 | $279.9 | $289.7 | | Paper | $150.1 | $142.8 | $26.1 | $33.5 | | Corporate and Other | $16.9 | $19.0 | $(30.5) | $(30.5) | - Packaging segment volumes showed significant strength with corrugated products shipments per day **increasing by 9.2% YoY** and containerboard production reaching a **record 1,281,000 tons**[30](index=30&type=chunk) - Paper segment sales volume **increased by 12%** compared to Q2 2023 but decreased by 8% compared to Q1 2024[30](index=30&type=chunk) [Management Commentary & Outlook](index=3&type=section&id=Management%20Commentary%20%26%20Outlook) Management highlighted strong market conditions and issued Q3 2024 earnings guidance of $2.45 per share - CEO Mark W. Kowlzan attributed the strong quarterly results to robust market conditions, which led to **record containerboard production** and corrugated shipment levels in June[15](index=15&type=chunk) - For Q3 2024, the company expects higher prices and continued strength in corrugated shipment volume, offset by higher seasonal operating and converting costs[31](index=31&type=chunk) - The company expects third quarter 2024 earnings of **$2.45 per share**[31](index=31&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated earnings results for the three and six months ended June 30, 2024 Consolidated Earnings Results (Unaudited, $ in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,075.3 | $1,952.1 | $4,054.8 | $3,928.4 | | Gross profit | $437.7 | $444.7 | $808.1 | $876.1 | | Income from operations | $276.0 | $284.4 | $472.0 | $555.0 | | Income before taxes | $266.7 | $267.8 | $454.3 | $521.1 | | Net income | $198.9 | $202.7 | $345.9 | $392.8 | | Diluted EPS | $2.21 | $2.24 | $3.84 | $4.35 | [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP figures to non-GAAP measures like EBITDA and earnings excluding special items - Management presents non-GAAP measures to evaluate ongoing operational performance and facilitate period-over-period comparisons[3](index=3&type=chunk)[24](index=24&type=chunk) [Net Income and EPS Excluding Special Items](index=9&type=section&id=Net%20Income%20and%20EPS%20Excluding%20Special%20Items) This reconciliation adjusts reported Net Income and Diluted EPS for special items related to mill conversion and closures Q2 Reconciliation of Net Income and EPS ($ in millions, except per-share data) | Description | Income before Taxes | Income Taxes | Net Income | Diluted EPS | | :--- | :--- | :--- | :--- | :--- | | **As reported (Q2 2024)** | **$266.7** | **$(67.8)** | **$198.9** | **$2.21** | | Total special items | $(0.5) | $0.2 | $(0.3) | $0.00 | | **Excluding special items (Q2 2024)** | **$266.2** | **$(67.6)** | **$198.6** | **$2.20** | Six Months Reconciliation of Net Income and EPS ($ in millions, except per-share data) | Description | Income before Taxes | Income Taxes | Net Income | Diluted EPS | | :--- | :--- | :--- | :--- | :--- | | **As reported (YTD 2024)** | **$454.3** | **$(108.4)** | **$345.9** | **$3.84** | | Total special items | $9.7 | $(2.4) | $7.3 | $0.08 | | **Excluding special items (YTD 2024)** | **$464.0** | **$(110.8)** | **$353.2** | **$3.92** | [EBITDA and EBITDA Excluding Special Items](index=10&type=section&id=EBITDA%20and%20EBITDA%20Excluding%20Special%20Items) This table reconciles GAAP Net Income to EBITDA, showing Q2 2024 adjusted EBITDA of $404.0 million Reconciliation of Net Income to EBITDA ($ in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $198.9 | $202.7 | $345.9 | $392.8 | | Interest expense, net | $10.4 | $14.6 | $19.9 | $29.9 | | Provision for income taxes | $67.8 | $65.1 | $108.4 | $128.3 | | Depreciation, amortization, and depletion | $128.5 | $127.9 | $256.9 | $257.5 | | **EBITDA** | **$404.5** | **$412.3** | **$728.9** | **$812.5** | | Special items | $(0.5) | $5.2 | $8.3 | $9.9 | | **EBITDA excluding special items** | **$404.0** | **$417.5** | **$737.2** | **$822.4** | [Segment Income to EBITDA Excluding Special Items](index=11&type=section&id=Segment%20Income%20to%20EBITDA%20Excluding%20Special%20Items) This section provides a segment-level breakdown of the reconciliation from segment income to adjusted EBITDA Packaging Segment EBITDA Reconciliation (Q2 2024 vs Q2 2023, $ in millions) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Segment income | $279.8 | $285.8 | | Depreciation, amortization, and depletion | $120.1 | $116.3 | | **EBITDA** | **$399.9** | **$402.1** | | Special Items | $0.1 | $3.2 | | **EBITDA excluding special items** | **$400.0** | **$405.3** | Paper Segment EBITDA Reconciliation (Q2 2024 vs Q2 2023, $ in millions) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Segment income | $26.7 | $29.1 | | Depreciation, amortization, and depletion | $4.5 | $7.7 | | **EBITDA** | **$31.2** | **$36.8** | | Special Items | $(0.6) | $2.0 | | **EBITDA excluding special items** | **$30.6** | **$38.8** |

Core Viewpoint - Packaging Corp. (PKG) is highlighted as a strong candidate for investors due to its consistent performance in beating earnings estimates and its favorable positioning for future earnings reports [1]. Company Performance - Packaging Corp. has a solid track record of exceeding earnings estimates, with an average surprise of 11.93% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $1.72 per share, surpassing the Zacks Consensus Estimate of $1.63 per share by 5.52% [3]. - For the previous quarter, the company reported earnings of $2.13 per share against an expected $1.80 per share, resulting in a surprise of 18.33% [3]. Earnings Estimates and Predictions - Estimates for Packaging Corp. have been trending upward, supported by its history of earnings surprises [4]. - The company currently has a positive Zacks Earnings ESP of +0.66%, indicating increased analyst optimism regarding its near-term earnings potential [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report [7]. Earnings ESP Insights - The Zacks Earnings ESP is a comparison between the Most Accurate Estimate and the Zacks Consensus Estimate, reflecting the latest analyst revisions [6]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5].

The Zacks Consensus Estimate for PKG's second-quarter revenues is pegged at $2.01 billion, indicating 3.1% growth from the year-ago reported figure. | --- | --- | --- | --- | --- | |---------|--------------------------------------|-------|-------|-------| | | de Consensus Estimate Trend (60 \nQ1 | Q2 | F1 | F2 | | Current | 2.11 | 2.33 | 8.33 | 9.29 | | | 2.10 | 2.33 | 8.33 | 9.29 | | | 2.10 | 2.33 | 8.27 | 9.19 | | | 2.10 | 2.33 | 8.27 | 9.18 | Solid Earnings Surprise History | --- | --- | --- | --- | --- ...

Core Viewpoint - The upcoming earnings report for Packaging Corp. is anticipated to influence stock movement, with better-than-expected results likely to drive the stock higher, while disappointing results may lead to a decline [1]. Revenue Expectations - Revenues for the upcoming quarter are projected to be $2.01 billion, reflecting a year-over-year increase of 3.1% [2]. Earnings Per Share (EPS) Estimates - The consensus EPS estimate for the quarter remains unchanged over the last 30 days, indicating a stable reassessment by analysts [3]. - Packaging Corp. is expected to report quarterly earnings of $2.11 per share, which represents a year-over-year decline of 8.7% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that Packaging Corp. is likely to beat the consensus EPS estimate, with a positive Earnings ESP of +0.67% [22]. - The company has a strong track record, having beaten consensus EPS estimates in the last four quarters [24]. Analyst Sentiment - Analysts have recently become more optimistic about Packaging Corp.'s earnings prospects, as indicated by the Most Accurate Estimate being higher than the Zacks Consensus Estimate [22]. - The stock currently holds a Zacks Rank of 2, suggesting a favorable outlook [16]. Market Context - Wall Street anticipates a year-over-year decline in earnings despite higher revenues for the quarter ended June 2024, making the comparison of actual results to estimates crucial for stock price movement [10]. - The sustainability of any immediate price changes will largely depend on management's commentary during the earnings call [11].

In December 2021, the company acquired all assets of Advanced Packaging Corporation in a cash-free transaction. PKG acquired a full-line 500,000-square-foot corrugated products facility located in Grand Rapids, MI. The deal supported Packaging Corp's focus on enhancing its containerboard portfolio through organic box volume growth and strategic box plant acquisitions. Following the buyout, PKG's containerboard integration increased almost 80,000 tons. This enhanced its mill capacity and box plant operations ...

Have you been paying attention to shares of Packaging Corp. (PKG) ? Shares have been on the move with the stock up 3.3% over the past month. The stock hit a new 52-week high of $191.39 in the previous session. Packaging Corp. has gained 16.5% since the start of the year compared to the 4.8% move for the Zacks Industrial Products sector and the 7.1% return for the Zacks Containers - Paper and Packaging industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, a ...

Packaging Corporation of America (PKG) has been gaining from strong growth in e-commerce activities that continue to support packaging demand. Stable demand for food, beverages, medication and other consumer products bodes well for the Packaging segment. However, higher labor costs and planned annual outages mills will dent its results in 2024. The fall in reported benchmark pricing that took place late in 2023, with export prices remaining relatively unchanged, will impact margins. Demand in E-Commerce to ...

Core Viewpoint - ParcelPal Logistics Inc. is currently under a management cease trade order (MCTO) due to delays in filing its audited annual financial statements for the fiscal year ended December 31, 2023, which were originally due on April 29, 2024 [1][2]. Group 1: Management Cease Trade Order (MCTO) - The MCTO prohibits trading in the company's capital by the CEO and CFO until the required filings are completed and the MCTO is lifted [2]. - Other shareholders are not affected by the MCTO and can continue trading in the company's securities [2]. Group 2: Financial Filings Status - The preparation of the annual filings is impacting the timely completion of the interim financial statements for the three months ended March 31, 2024, which are due by May 30, 2024 [3]. - The company is working with newly appointed auditors to complete both the annual and interim filings as soon as possible, with an anticipated filing date on or before June 28, 2024 [4]. Group 3: Compliance and Reporting - Since the announcement of the MCTO, there have been no material changes to the information disclosed, and the company has not failed to meet its stated intentions regarding alternative information guidelines [5]. - The company will continue to issue bi-weekly default status reports until the required filings are posted and the MCTO is lifted [6]. Group 4: Company Overview - ParcelPal Logistics Inc. is based in Vancouver, British Columbia, and specializes in last-mile delivery services and logistics solutions across various sectors, including pharmacy, meal kit deliveries, retail, and groceries [7].

[PART I - Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements for Q1 2024, detailing a year-over-year decrease in net income despite stable net sales [Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2024 net sales remained flat year-over-year, while higher costs led to a decline in net income and earnings per share Q1 2024 vs. Q1 2023 Income Statement Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | 1,979.5 | 1,976.3 | +0.2% | | Gross profit | 370.4 | 431.4 | -14.1% | | Income from operations | 196.0 | 270.7 | -27.6% | | Net income | 146.9 | 190.1 | -22.7% | | Diluted EPS ($) | 1.63 | 2.11 | -22.7% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased slightly to $8.86 billion, supported by a rise in cash and cash equivalents Balance Sheet Summary | Metric | March 31, 2024 ($M) | Dec 31, 2023 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 692.4 | 648.0 | | Total current assets | 3,445.1 | 3,254.4 | | Total assets | 8,857.0 | 8,681.1 | | Total current liabilities | 1,400.3 | 1,265.7 | | Total liabilities | 4,826.0 | 4,683.8 | | Total stockholders' equity | 4,031.0 | 3,997.3 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $260.4 million in Q1 2024 due to lower net income Q1 2024 vs. Q1 2023 Cash Flow Summary | Cash Flow Activity | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | Net cash from operating activities | 260.4 | 280.4 | | Net cash used for investing activities | (81.0) | (115.4) | | Net cash used for financing activities | (135.0) | (117.3) | | Net increase in cash | 44.4 | 47.7 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Provides key disclosures on revenue disaggregation, litigation accruals, segment performance, and major customers Revenue by Product Line (Q1 2024 vs Q1 2023) | Product Line | Q1 2024 Revenue ($M) | Q1 2023 Revenue ($M) | | :--- | :--- | :--- | | Packaging | 1,798.3 | 1,808.6 | | Paper | 163.8 | 150.9 | | Corporate and Other | 17.4 | 16.8 | | **Total revenue** | **1,979.5** | **1,976.3** | - A jury awarded plaintiffs approximately **$91.8 million** in damages related to the 2017 DeRidder mill incident, for which the company recorded a **$123.7 million** accrual and a corresponding insurance receivable[89](index=89&type=chunk)[93](index=93&type=chunk) Segment Operating Income (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Operating Income ($M) | Q1 2023 Operating Income ($M) | | :--- | :--- | :--- | | Packaging | 203.8 | 268.0 | | Paper | 29.7 | 34.1 | | Corporate and Other | (37.5) | (31.4) | - ODP Corporation is the largest customer in the Paper segment, accounting for approximately **58%** of the segment's sales and **5%** of total company sales in Q1 2024[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 net income decrease to lower prices and higher costs, despite stable sales and strong volumes [Executive Summary](index=25&type=section&id=Executive%20Summary) Q1 2024 net income declined to $147 million, driven by lower prices and higher costs that were partially offset by stronger sales volumes Q1 Earnings Per Share (Reported vs. Excluding Special Items) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings per diluted share, as reported | $1.63 | $2.11 | | Earnings per diluted share, excluding special items | $1.72 | $2.20 | - Packaging segment EBITDA (excluding special items) decreased to **$326 million** from **$392 million** YoY, due to lower prices and higher outage expenses, despite an **11.0%** per workday increase in corrugated products shipments[98](index=98&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Flat net sales resulted from higher volumes in both segments being offset by pricing pressure in the Packaging segment - Packaging segment's corrugated products shipments increased **9.2%** in total and **11.0%** per workday compared to Q1 2023[108](index=108&type=chunk) - Paper segment sales increased due to higher volume (**$23 million**), which was partially offset by lower prices and mix (**$10 million**)[109](index=109&type=chunk) - The effective tax rate decreased to **21.6%** in Q1 2024 from **24.9%** in Q1 2023, primarily due to higher excess tax benefits from employee stock awards[118](index=118&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $692 million in cash and projects capital expenditures of $470-$490 million for 2024 - At quarter-end, the company had **$692 million** of cash and cash equivalents and **$323 million** of unused borrowing capacity under its revolving credit facility[119](index=119&type=chunk) - Capital investments for 2024 are expected to be between **$470 million** and **$490 million**[124](index=124&type=chunk) - During Q1 2024, the company paid **$112.0 million** in dividends to shareholders[125](index=125&type=chunk) [Outlook](index=26&type=section&id=Outlook) Management anticipates higher Q2 earnings driven by strong demand and improved pricing in the Packaging segment - Packaging segment: Expects continued strong demand, higher shipments, and higher prices and mix in Q2[105](index=105&type=chunk) - Paper segment: Orders are expected to remain strong, but volume will be lower due to a scheduled maintenance outage[105](index=105&type=chunk) - Overall, the company expects **second-quarter earnings to be higher** than the first quarter[105](index=105&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure is primarily from commodity prices and interest rates, mitigated by 100% fixed-rate debt - As of March 31, 2024, **100%** of PCA's outstanding debt is at fixed interest rates, minimizing exposure to interest rate fluctuations[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of March 31, 2024[144](index=144&type=chunk) - **No material changes** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) [PART II - Other Information](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates disclosures from Note 19 regarding the DeRidder Mill incident litigation - Information regarding legal proceedings is detailed in **Note 19** of the financial statements, which discusses the DeRidder Mill incident litigation[148](index=148&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K - There have been **no material changes** to the risk factors disclosed in the company's 2023 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q1 2024, with $436.0 million remaining under the authorized buyback program - The company **did not repurchase any shares** of its common stock under its authorized plan during Q1 2024[78](index=78&type=chunk)[150](index=150&type=chunk) - A total of **126,367 shares** were withheld from employees to cover income and payroll taxes on vested equity awards[150](index=150&type=chunk) - As of March 31, 2024, **$436.0 million** remained available for future repurchases under the company's stock repurchase program[78](index=78&type=chunk)[150](index=150&type=chunk)