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)

Financial Data and Key Metrics Changes - First quarter net income was $147 million or $1.63 per share, down from $198 million or $2.20 per share in the first quarter of 2023, with adjusted net income of $155 million or $1.72 per share excluding special items [90] - Total company EBITDA for the first quarter was $333 million in 2024 compared to $405 million in 2023 [90] - The decrease in earnings per share was primarily driven by lower prices and mix in the Packaging segment and Paper segment, higher scheduled mill outage expenses, and increased depreciation [3][16] Business Line Data and Key Metrics Changes - In the Packaging segment, EBITDA excluding special items was $326 million with sales of $1.8 billion, resulting in a margin of 18.1%, down from 21.7% in the previous year [5] - Corrugated product shipments per workday increased by 11%, and total shipments were up 9.2% compared to the first quarter of 2023 [7] - In the Paper segment, EBITDA was $41 million with sales of $164 million, resulting in a margin of 25%, down from 27% in the previous year [11] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix increased slightly from the fourth quarter of 2023, but were down $1.19 per share compared to the first quarter of 2023 [8] - Export containerboard prices and mix were down $0.14 per share compared to the first quarter of 2023 [8] - The order backlog remained strong despite challenges from inflation and higher interest rates [7] Company Strategy and Development Direction - The company continues to focus on capital spending and optimization strategies within its box plant system to enhance revenue growth and customer service [9] - The company expects to build inventories back to targeted levels by the end of the second quarter [5] - The management emphasized the importance of aligning investments with customer needs to drive growth [41] Management Comments on Operating Environment and Future Outlook - Management expects continued strong demand and higher shipments in the Packaging segment, with anticipated price increases [16] - The Paper segment is expected to see strong orders, but volumes may be impacted by a scheduled maintenance outage [16] - Operating and converting costs are expected to be slightly lower, but freight and logistics expenses will increase due to rail rate hikes [17] Other Important Information - Cash provided by operations totaled $260 million, with free cash flow reaching a record $184 million for the first quarter [14] - The company revised its estimated cost impact of scheduled mill outages for the year to $0.89 per share, down from $0.96 per share previously [14] Q&A Session Summary Question: Early trends in bookings and billings for Q2 - Bookings remain strong, up 8% as of now, with expectations for a strong second quarter [22] Question: Vertical integration and business mix - Vertical integration in Q1 was around 90%, slightly below the previous quarter [24] Question: EBITDA margin loss explanation - The margin gap was attributed to delayed price increases and persistent inflation affecting costs [31][32] Question: Demand improvement in specific sectors - Demand improved across various segments, including e-commerce, agriculture, food, and heavy manufacturing [38] Question: Future capital expenditures - Full-year capital expenditures are expected to be in the high $400 million range, with ongoing investments in box plants [52] Question: Pricing mechanisms and inflation - The company is exploring various pricing mechanisms with customers to address inflationary pressures [70] Question: Competitive landscape changes due to mergers - Management does not foresee significant changes in the domestic marketplace due to competitors' mergers [86]

Reported earnings in the first quarter of 2024 include special items primarily for certain costs at the Jackson, AL mill for paper-to- containerboard conversion related activities. Excluding special items, the ($.48) per share decrease in first quarter 2024 earnings compared to the first quarter of 2023 was driven primarily by lower prices and mix in the Packaging segment ($1.33) and Paper segment ($.08), higher scheduled mill outage expenses ($.10), higher depreciation ($.03), higher expenses related to co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 1-15399 (Exact Name of Registrant as Specified in its Charter) | Delaware | | --- | (State or Other Jurisdiction of Incorporation or Organization) 1 No ...

Packaging Corporation of America (NYSE:PKG) Q4 2023 Earnings Conference Call January 25, 2024 9:00 AM ET Company Participants Mark Kowlzan – Chairman and Chief Executive Officer Tom Hassfurther – Executive Vice President-Corrugated Products Bob Mundy – Chief Financial Officer Conference Call Participants Mark Weintraub – Seaport Research Partners Mike Roxland – Truist Cashen Keeler – Bank of America Securities Gabrial Hajde – Wells Fargo Anthony Pettinari – Citi Phil Ng – Jefferies Charlie Muir-Sands – BNP ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-15399 (Exact Name of Registrant as Specified in its Charter) Indicate by check mark whether the registrant (1) has filed all reports requ ...

Financial Data and Key Metrics Changes - The company reported a third quarter net income of $183 million or $2.03 per share, down from $266 million or $2.83 per share in the same quarter of 2022 [8] - Third quarter net sales were $1.9 billion in 2023 compared to $2.1 billion in 2022 [8] - Total company EBITDA for the third quarter excluding special items was $388 million in 2023, down from $477 million in 2022 [9] Business Line Data and Key Metrics Changes - Packaging segment EBITDA excluding special items was $374 million with sales of $1.8 billion, resulting in a margin of 21.3%, compared to last year's EBITDA of $467 million with sales of $1.9 billion and a 24.1% margin [12] - The paper segment reported EBITDA excluding special items of $35 million with sales of $158 million, a margin of 22.4%, compared to $33 million and $165 million in sales in the same quarter of 2022 [21] Market Data and Key Metrics Changes - Corrugated product shipments per workday were up 1.9%, while total shipments were down 1.3% compared to last year's third quarter [16] - Outside sales volume of container board was 33,000 tons above last year's third quarter and 5,000 tons above the second quarter of 2023 [17] - Domestic container board and corrugated products prices were down $1.12 per share compared to the third quarter of 2022 [19] Company Strategy and Development Direction - The company plans to restart the number three machine at the Wallula mill during the fourth quarter to bring inventories to desired levels [14] - The company is focused on continuous improvement and operational excellence across its mills and box plants to manage costs effectively [45][49] - The company aims to maintain a balance between virgin and recycled fiber production, leveraging its capabilities to flex based on market demands [87][91] Management's Comments on Operating Environment and Future Outlook - Management noted that inventory destocking is behind many customers, leading to improved volume expectations for the second half of the year [18] - The company anticipates fourth quarter earnings of $1.76 per share, despite expected increases in operating and converting costs [29] - Management expressed confidence in strong holiday demand for the fourth quarter [99] Other Important Information - Cash provided by operations during the quarter totaled $339 million, with free cash flow of $250 million [24] - The company repurchased over 286,000 shares during the quarter at an average price of $144.81 per share [25] Q&A Session Summary Question: Can you provide more color on the cadence of shipments during the quarter? - Management indicated that the agricultural business is expected to have a good season, which will contribute positively [37] Question: What are the expectations for the Wallula mill restart? - Management stated that the restart is driven by demand and will fulfill current needs, with flexibility to adjust based on market conditions [51] Question: How do you view the impact of new recycled capacity in the market? - Management noted that there has been virtually no impact from new recycled capacity, as domestic customers prefer PCA for quality and service [88] Question: What is the outlook for 2024? - Management emphasized a disciplined approach to capital spending and plans to continue leveraging cash generated for shareholder value [81]