RockTenn (RKT) Guides Q2 adj.-EPS Below Views
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Price: $13.90 -2.8%
Financial Fact:
Equity in income of unconsolidated entities: 2.4M
Today's EPS Names:
EGRX, VAXX, AFIB, More
Financial Fact:
Equity in income of unconsolidated entities: 2.4M
Today's EPS Names:
EGRX, VAXX, AFIB, More
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RockTenn (NYSE: RKT) reports that it expects fiscal second quarter earnings of between $0.35 and $.40 per diluted share and adjusted earnings of between $0.85 and $.90 per diluted share.
The Street is currently looking for EPS of $1.12.
The primary factors reducing fiscal second quarter adjusted earnings per diluted share compared to the fiscal first quarter adjusted earnings per diluted share are the impact of approximately 149,000 additional tons of economic and maintenance downtime at its containerboard mills, including approximately 30,000 tons from the previously announced closure of the Matane mill, the acceleration to the fiscal second quarter from the fiscal third quarter of a scheduled maintenance outage at RockTenn’s Demopolis, Alabama bleached paperboard mill, and lower pricing for export containerboard.
To calculate estimated adjusted earnings per diluted share, RockTenn’s estimated earnings per diluted share exclude approximately $0.50 per diluted share of restructuring costs and loss on extinguishment of debt. The loss on extinguishment of debt relates primarily to the redemption of its $300 million 9.25% Senior Notes due March 2016 at a redemption price equal to 104.625% of the principal amount and associated unamortized costs ($0.17 per diluted share). Restructuring and other costs and operating losses and transition costs due to plant closures, net of related noncontrolling interest, consist primarily of facility closure charges primarily related to the February 2012 closure of the Company’s Matane, Quebec corrugated medium mill ($0.23 per diluted share) and other former Smurfit-Stone corrugated container plants, merger integration costs and operating losses and transition costs in connection with consolidating facilities ($0.15 per diluted share). These costs are partially offset by the gain on sale of a previously closed corrugated container plant ($0.05 per diluted share).
The Street is currently looking for EPS of $1.12.
The primary factors reducing fiscal second quarter adjusted earnings per diluted share compared to the fiscal first quarter adjusted earnings per diluted share are the impact of approximately 149,000 additional tons of economic and maintenance downtime at its containerboard mills, including approximately 30,000 tons from the previously announced closure of the Matane mill, the acceleration to the fiscal second quarter from the fiscal third quarter of a scheduled maintenance outage at RockTenn’s Demopolis, Alabama bleached paperboard mill, and lower pricing for export containerboard.
To calculate estimated adjusted earnings per diluted share, RockTenn’s estimated earnings per diluted share exclude approximately $0.50 per diluted share of restructuring costs and loss on extinguishment of debt. The loss on extinguishment of debt relates primarily to the redemption of its $300 million 9.25% Senior Notes due March 2016 at a redemption price equal to 104.625% of the principal amount and associated unamortized costs ($0.17 per diluted share). Restructuring and other costs and operating losses and transition costs due to plant closures, net of related noncontrolling interest, consist primarily of facility closure charges primarily related to the February 2012 closure of the Company’s Matane, Quebec corrugated medium mill ($0.23 per diluted share) and other former Smurfit-Stone corrugated container plants, merger integration costs and operating losses and transition costs in connection with consolidating facilities ($0.15 per diluted share). These costs are partially offset by the gain on sale of a previously closed corrugated container plant ($0.05 per diluted share).
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