Exhibit 99.1
Rock-Tenn Company Reports Fourth Quarter and Fiscal Year 2003 Results
Sales Increase 4.7% over Fiscal 2002
NORCROSS, Ga.--(BUSINESS WIRE)--Oct. 28, 2003--Rock-Tenn Company
(NYSE:RKT) today reported financial results for the fiscal fourth
quarter and fiscal year ended September 30, 2003. Net sales from
continuing operations for the fiscal fourth quarter of 2003 were
$385.0 million up 6.6% compared to $361.3 million in the prior year
quarter. Net income was $10.0 million, or $0.28 per diluted share, for
the fiscal fourth quarter ended September 30, 2003, compared to $3.2
million, or $0.09 per diluted share, in the comparable quarter of the
prior fiscal year. Rock-Tenn Company's net income in the fiscal fourth
quarter of 2003 included $0.4 million, or $0.01 per diluted share,
from discontinued operations as a result of the previously announced
agreement to sell its Plastic Packaging division. In the fourth
quarter of fiscal 2002, the Company recorded income from discontinued
operations of $0.6 million, or $0.01 per diluted share. Pre-tax
restructuring and other costs were $0.6 million and $8.6 million for
the fourth quarters of fiscal years 2003 and 2002, respectively.
The Company reported net sales from continuing operations of $1.4
billion for the fiscal year ended September 30, 2003, a 4.7% increase
from the previous year. Net income was $29.6 million, or $0.85 per
diluted share, for the fiscal year ended September 30, 2003, compared
to $26.6 million, or $0.77 per diluted share, in the prior fiscal
year, including a charge in fiscal 2002 of $5.8 million, or $0.17 per
diluted share, due to the cumulative effect of a change in accounting
principle. Rock-Tenn Company's net income in fiscal 2003 included
$0.03 million from discontinued operations compared to $2.6 million,
or $0.07 per diluted share, in the prior year. Pre-tax restructuring
and other costs were $1.7 million and $18.2 million in fiscal years
2003 and 2002, respectively.
Chairman and Chief Executive Officer's Statement
Rock-Tenn Company Chairman and Chief Executive Officer James A.
Rubright stated, "Our earnings of $0.28 per share were consistent with
our expectations for the quarter. They reflect 15.8% higher segment
operating income compared to the fourth quarter of fiscal 2002. The
higher earnings for the quarter reflect strong gains in packaging
sales, up 19.9% over the prior year quarter, and improved
profitability in our display segment. Our increase in sales for the
full fiscal year reflects our continuing improvement in our
competitive position in all of our businesses. We plan to continue to
be the leader in our businesses in investing in technology to lower
our costs and improve our quality.
"Our capital expenditures for fiscal year 2003 were $57 million,
somewhat lower than our expectations of $60 to $65 million at the
beginning of the year. For fiscal 2004, we continue to expect our
capital expenditures to be approximately $60 million. We expect that
over half of our capital will support continued growth and cost
reduction strategies in our Folding Carton operations.
"During fiscal 2003, our cash provided by operations was $115.0
million, compared to $117.6 million in fiscal 2002. Cash provided by
operations in fiscal 2003 was reduced by a $22.7 million contribution
to our pension plans that was not required to be made last year.
"For the first fiscal quarter of 2004, we expect earnings to be in
the range of $0.18 to $0.22 per share, an increase over earnings in
the first quarter of fiscal 2003, reflecting primarily expected sales
and margin increases in our packaging segment."
Segment Results
Packaging Products Segment
During the fourth quarter of fiscal 2003 we announced the sale of
our Plastic Packaging division to Pactiv Corporation for $60.0 million
(which is expected to close in October 2003). As a result, we have
restated our financial statements and data to reflect the Plastic
Packaging division as a discontinued operation. Accordingly, sales,
operating income and other segment data exclude the results of that
business for all periods presented. Packaging Products segment sales
increased 19.9% in the fiscal fourth quarter of 2003 to $221.3 million
from $184.6 million in the fourth quarter of 2002. Packaging Products
segment operating income increased to $12.7 million in the fiscal
fourth quarter of 2003 compared to $10.6 million in the prior year
quarter. Return on sales for the fiscal fourth quarter of 2003
remained flat compared to the prior year quarter.
Folding carton division sales increased 23.8% compared to the
fourth quarter of 2002. The sales increase was due to strong internal
growth and to the Company's two acquisitions, Cartem-Wilco and Pacific
Coast Packaging, which contributed $18.9 million of the $36.2 million
increase. The folding carton division's operating income increased
$1.3 million from the prior year quarter. Interior packaging sales
increased $0.5 million compared to the year ago quarter, and operating
income for the RTS division increased relative to the fourth quarter
of 2002 as a result of lower workers compensation and other labor
related costs.
Packaging Products segment sales increased $78.7 million in fiscal
2003 to $801.4 million. Sales in the folding carton division increased
12% in fiscal 2003. The sales increase was due to strong internal
growth and to the Company's two acquisitions, Cartem-Wilco and Pacific
Coast Packaging, which contributed $45.6 million of the $78.7 million
increase. Additionally, RTS division sales increased $6.9 million as a
result of improved product pricing during the year as well as greater
volumes. Packaging Products segment operating income was $37.6 million
in fiscal 2003 compared to $46.1 million in the prior year. Folding
carton division operating income declined due primarily to lower than
expected sales volumes in the early part of the year, lower margins
due to higher board costs not fully passed on to customers and
competitive pricing pressure. These costs were somewhat offset by
operating income contributed by the Company's acquisitions in 2003 as
well as increased operating income in the RTS division. Return on
sales in the segment for fiscal 2003 decreased to 4.7% from 6.4% in
the prior year.
Merchandising Displays and Corrugated Packaging Segment
In the fourth quarter of 2003, Merchandising Displays and
Corrugated Packaging segment sales were $76.8 million compared to
$79.5 million in the fourth quarter of 2002. Operating income for the
segment increased 1% over the year ago quarter to $9.1 million. Return
on sales for the fiscal fourth quarter of 2003 was 11.8% compared to
11.3% in the prior year quarter.
Corrugated packaging sales decreased 7.7% from the prior year
quarter primarily due to the closing of a corrugated packaging plant
in September 2002. Operating income in the segment increased from the
prior year quarter primarily as a result of a facility rationalization
in the corrugated division.
Merchandising Displays and Corrugated Packaging segment sales were
$285.1 million in fiscal 2003 compared to $289.6 million in fiscal
2002. The decrease in segment sales was due to a 9.3% decrease in
sales at the corrugated packaging division. The merchandising displays
division's sales increased over the prior year despite a weakening in
the market for promotional displays. Operating income for the segment
was $27.7 million in fiscal 2003 compared to $32.8 million in the
prior year. Expenses associated with Alliance's enterprise application
integration system project, higher raw material prices and lower
prices and volumes in the corrugated packaging division negatively
impacted the segment for the year. Return on sales for fiscal 2003
decreased to 9.7% from 11.3% in the prior year.
Paperboard Segment
Paperboard segment sales were $131.9 million in the fiscal fourth
quarter of 2003 versus $138.3 million in the same quarter of 2002.
Total tons shipped in the quarter for the Paperboard segment were
279,629 tons compared to 285,789 tons shipped in the same quarter last
year. The Company's recycled paperboard mills operated at 94% of
capacity during the fiscal fourth quarter of 2003. Operating income in
the segment increased 53% to $3.7 million compared to $2.4 million in
the prior year quarter, primarily due to higher operating rates
enabled by the shutdown of one specialty paperboard machine one year
ago. Return on sales was 2.8% in the fourth quarter of 2003 compared
to 1.8% in the fourth quarter of 2002.
In fiscal 2003, Paperboard segment sales remained relatively flat
compared to the previous year at $516.1 million. Total tons shipped
for the Paperboard segment were 1,100,832 tons compared to 1,105,363
tons shipped in the prior year. The Company's recycled paperboard
mills operated at 94% of capacity in fiscal 2003 compared to 89% in
the prior year. Operating income in the segment was $20.7 million
compared to $24.1 million in the prior year. The decline in operating
income was caused primarily by continued weakness in demand for
ready-to-assemble furniture components and competitive pricing for
recycled clay-coated boxboard. Return on sales was 4.0% in 2003
compared to 4.7% in the prior year.
Selling, General & Administrative Expenses
During the fourth quarter of 2003, selling, general and
administrative expenses were $48.1 million, or 12.5% of net sales,
compared to $46.2 million, or 12.8% of net sales, in the same quarter
of last year. Selling, general and administrative expense as a
percentage of net sales decreased versus the previous year quarter due
to continued focus on cost reductions and productivity improvements.
For fiscal year 2003, selling general and administrative expenses
were $184.6 million, or 12.9% of net sales compared to $181.6 million,
or 13.3% of net sales for fiscal year 2002. Selling, general and
administrative expense as a percentage of net sales decreased versus
the previous year due to continued focus on cost reductions and
productivity improvements.
Financing
Rock-Tenn Company's debt balance, excluding the fair value hedge
adjustment of $23.9 million, at the end of the fourth quarter of 2003
was $502.0 million compared to $510.2 and $453.2 million, excluding
fair value hedge adjustments of $24.3 million and $19.8 million, on
June 30, 2003 and September 30, 2002, respectively.
The Company recorded at year-end a provision for additional
minimum pension liability of $40.8 million. The provision was included
in other comprehensive income and resulted in a reduction of
shareholder's equity of $25.0 million, net of tax. The charge was
primarily the result of both the reduction in the assumed discount
rate applied to the accumulated benefit obligation under the Company's
pension plans and the investment performance of pension assets in
recent years. The Company stated that it expects to record pension
expense of $16.4 million in fiscal year 2004 as compared to $10.7
million in fiscal year 2003.
Cautionary Statements
Statements herein regarding expected earnings of the Company;
expected performance of the Company's businesses, such as expected
sales, expected margins, and expectations regarding market leadership
in technology investment; expected capital expenditures; and expected
pension expense constitute forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act
of 1934. Such statements are based on our current expectations and
beliefs and are subject to certain risks and uncertainties that could
cause actual results to differ materially from those contained in any
forward looking statement. With respect to these statements, the
Company has made assumptions regarding expected economic conditions,
expected volumes and price levels of purchases by customers, raw
material and energy costs, labor costs, the amount and timing of
expected capital expenditures, including installation costs, project
development and implementation costs, severance and other shutdown
costs, restructuring costs, expected credit availability, expected
year-end inventory levels and costs, competitive conditions in our
businesses, and possible adverse actions of our customers, our
competitors and suppliers. The forward-looking statements are subject
to certain risks including, among others, that the foregoing
assumptions are inaccurate. There are many factors that impact these
forward-looking statements that cannot be predicted accurately. Actual
results may vary materially from current expectations, in part because
the Company manufactures most of its products against customer orders
with short lead times and small backlogs, while earnings are currently
dependent on volume due to price levels and fixed operating costs.
Further, these forward-looking statements are subject to a number of
general risks including, among others, decreases in demand for the
Company's products, increases in energy and raw material costs,
reduced supply of raw materials, increases in capital equipment costs,
fluctuations in selling prices, increased competition, and adverse
changes in general market and industry conditions. Such risks are more
particularly described in the Company's filings with the Securities
and Exchange Commission, including under the caption "Forward-looking
Information and Risk Factors" in the Company's Annual Report on Form
10-K for the most recently ended fiscal year. Management believes its
estimates are reasonable; however, undue reliance should not be placed
on such estimates, which are based on current expectations. The
information contained herein speaks as of the date hereof and the
Company does not undertake any obligation to update such information
as future events unfold.
Conference Call
The Company will host a conference call to discuss its fourth
quarter and fiscal year 2003 and other topics that may be raised
during the discussion at 1:00 p.m., Eastern Time, on Tuesday, October
28. The conference call will be webcast and can be accessed, along
with a copy of this press release and any other statistical
information related to the conference call, at www.rocktenn.com.
Rock-Tenn Company is one of North America's leading marketing and
packaging solutions companies, with annual net sales of over $1.4
billion and over 70 manufacturing operations in the United States,
Canada, Mexico and Chile.
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
======================================================================
FOR THE THREE FOR THE TWELVE
MONTHS ENDED MONTHS ENDED
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
- ----------------------------------------------------------------------
NET SALES $385,031 $361,268 $1,433,346 $1,369,050
Cost of Goods Sold 313,478 294,594 1,168,290 1,090,483
- ----------------------------------------------------------------------
Gross Profit 71,553 66,674 265,056 278,567
Selling, General and
Administrative
Expenses 48,145 46,166 184,642 181,620
Restructuring and
Other Costs 597 8,556 1,684 18,237
- ----------------------------------------------------------------------
Operating Profit 22,811 11,952 78,730 78,710
Interest Expense (6,481) (6,761) (26,889) (26,399)
Interest and Other
Income 33 55 91 456
Income (loss) from
Unconsolidated Joint
Venture (23) 376 (399) (318)
Minority Interest in
Income of
Consolidated
Subsidiary (877) (577) (3,248) (2,971)
- ----------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 15,463 5,045 48,285 49,478
Provision For Income
Taxes 5,851 2,399 18,744 19,625
- ----------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE 9,612 2,646 29,541 29,853
Income from
Discontinued
Operations 352 570 35 2,617
INCOME BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE 9,964 3,216 29,576 32,470
- ----------------------------------------------------------------------
Cumulative Effect of
Change in Accounting
Principle --- --- --- (5,844)
NET INCOME $9,964 $3,216 $29,576 $26,626
======================================================================
Weighted Average
Common Shares
Outstanding-Diluted 35,131 34,575 34,743 34,373
Diluted Earnings Per
Share:
Income from
Continuing
Operations before
Cumulative Effect
of Change in
Accounting
Principle $0.27 $0.08 $0.85 $0.87
Income from
Discontinued
Operations 0.01 0.01 0.00 0.07
----------- ----------- ----------- -----------
Income before
Cumulative Effect
of Change in
Accounting
Principle 0.28 0.09 0.85 0.94
Cumulative Effect of
Change in
Accounting
Principle 0.00 0.00 0.00 (0.17)
----------- ----------- ----------- -----------
Diluted Earnings Per
Share $0.28 $0.09 $0.85 $0.77
======================================================================
ROCK-TENN COMPANY
INDUSTRY SEGMENT INFORMATION
(UNAUDITED)
(IN THOUSANDS, EXCEPT TONNAGE DATA)
======================================================================
FOR THE THREE FOR THE TWELVE
MONTHS ENDED MONTHS ENDED
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
- ----------------------------------------------------------------------
NET SALES:
Packaging Products
Segment $221,268 $184,554 $801,402 $722,685
Merchandising Displays
and Corrugated
Packaging Segment 76,832 79,459 285,106 289,551
Paperboard Segment 131,889 138,261 516,074 516,173
Intersegment
Eliminations (44,958) (41,006) (169,236) (159,359)
- ----------------------------------------------------------------------
TOTAL $385,031 $361,268 $1,433,346 $1,369,050
- ----------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES:
Packaging Products
Segment $12,659 $10,553 $37,558 $46,147
Merchandising Displays
and Corrugated
Packaging Segment 9,093 9,006 27,745 32,813
Paperboard Segment 3,700 2,426 20,738 24,094
- ----------------------------------------------------------------------
Segment Income $25,452 $21,985 $86,041 $103,054
Restructuring and
Other Costs (597) (8,556) (1,684) (18,237)
Non-Allocated Expense (2,067) (1,101) (6,026) (6,425)
Interest Expense (6,481) (6,761) (26,889) (26,399)
Interest and Other
Income 33 55 91 456
Minority Interest in
Income of
Consolidated
Subsidiary (877) (577) (3,248) (2,971)
- ----------------------------------------------------------------------
TOTAL $15,463 $5,045 $48,285 $49,478
======================================================================
Paperboard Shipped (in
tons) 279,629 285,789 1,100,832 1,105,363
======================================================================
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
======================================================================
FOR THE THREE FOR THE TWELVE
MONTHS ENDED MONTHS ENDED
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
- ----------------------------------------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income from continuing
operations $9,612 $2,646 $29,541 $29,853
Items in income not affecting
cash:
Depreciation and amortization 19,437 17,180 72,683 68,091
Deferred income taxes (5,087) (252) 12,085 5,617
Deferred compensation expense 281 154 851 858
Income tax benefit of
employee stock options 955 1,283 955 1,283
Gain on disposal of property,
plant and equipment 285 637 277 27
Equity in (income) loss from
joint venture 23 (376) 399 318
Minority interest in income
of consolidated subsidiary 877 577 3,248 2,971
Impairment loss and other
non-cash items (220) 5,390 591 13,670
Pension funding (more) less
than expense 2,797 (5,138) (11,554) (7,452)
Net changes in operating
assets and liabilities 10,659 11,230 1,301 (4,623)
- ----------------------------------------------------------------------
CASH PROVIDED BY OPERATING
ACTIVITIES FROM CONTINUING
OPERATIONS 39,619 33,331 110,377 110,613
Cash provided by operating
activities from discontinued
operations 1,777 4,139 4,574 6,945
--------- --------- ---------- ---------
NET CASH PROVIDED BY
OPERATING ACTIVITIES $41,396 $37,470 $114,951 $117,558
- ----------------------------------------------------------------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures (13,893) (23,120) (57,402) (72,701)
Cash paid for purchase of
assets under synthetic lease --- --- (21,885) ---
Cash paid for purchase of
businesses, net of cash
received (15,426) (2,475) (81,845) (25,351)
Cash contributed to joint
venture (20) (38) (332) (1,720)
Proceeds from sale of
property, plant and
equipment 1,459 91 8,316 11,399
Decrease (increase) in
unexpended industrial
revenue bond proceeds 2,273 (390) 3,649 (1,944)
- ----------------------------------------------------------------------
CASH USED FOR INVESTING
ACTIVITIES FROM CONTINUING
OPERATIONS (25,607) (25,932) (149,499) (90,317)
Cash used for investing
activities by discontinued
operations (166) (980) (3,598) (4,800)
--------- --------- ---------- ---------
NET CASH USED FOR INVESTING
ACTIVITIES $(25,773) $(26,912) $(153,097) $(95,117)
- ----------------------------------------------------------------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of
public notes ---- --- 99,748 ---
Net (repayments) additions to
revolving credit facilities 1,929 (1,300) 1,103 (5,600)
Additions to long-term debt 12,066 2,007 53,489 18,417
Repayments of long-term debt (22,626) (23,701) (106,226) (45,216)
Proceeds from monetizing swap
contracts 492 17,096 9,390 17,096
Debt issuance costs (3) 1 (1,016) (155)
Issuance of common stock 2,456 1,437 6,277 7,680
Purchases of common stock --- --- (1,313) (345)
Cash dividends paid to
shareholders (2,795) (2,573) (11,064) (10,183)
Distribution to minority
interest (1,400) (1,120) (3,780) (3,675)
- ----------------------------------------------------------------------
CASH PROVIDED BY (USED FOR)
FINANCING ACTIVITIES $(9,881) $(8,153) $46,608 $(21,981)
- ----------------------------------------------------------------------
Effect of exchange rate
changes on cash 525 (100) (849) 909
INCREASE IN CASH AND CASH
EQUIVALENTS 6,267 2,305 7,613 1,369
Cash and cash equivalents:
Beginning of period 7,906 4,255 6,560 5,191
- ----------------------------------------------------------------------
End of period $14,173 $6,560 $14,173 $6,560
- ----------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for:
Income taxes (net of
refunds) $2,963 $2,843 $11,168 $21,908
Interest (net of amounts
capitalized) $17,064 $10,766 $31,677 $26,066
======================================================================
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(IN THOUSANDS)
======================================================================
SEPTEMBER 30, JUNE 30, SEPTEMBER 30,
2003 2003 2002
- ----------------------------------------------------------------------
ASSETS:
Cash and cash equivalents $14,173 $7,906 $6,560
Receivables - net 163,096 151,387 151,086
Inventories - at LIFO cost 118,414 121,092 102,550
Other current assets 14,841 28,674 11,654
Current assets held for sale 52,703 57,108 50,237
- ----------------------------------------------------------------------
TOTAL CURRENT ASSETS 363,227 366,167 322,087
- ----------------------------------------------------------------------
Building and equipment - net 579,514 581,547 538,185
Intangible and other assets 345,047 337,733 312,779
- ----------------------------------------------------------------------
TOTAL ASSETS $1,287,788 $1,285,447 $1,173,051
======================================================================
LIABILITIES AND
SHAREHOLDERS' EQUITY:
Current maturities of long-
term debt $12,927 $18,831 $62,917
Other current liabilities 163,462 166,831 152,736
Current liabilities held for
sale 7,487 7,451 6,182
- ----------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 183,876 193,113 221,835
- ----------------------------------------------------------------------
Long-term maturities of debt 489,037 491,321 390,323
Adjustment for fair value
hedge 23,930 24,270 19,751
------------- ------------- -------------
Total long-term debt 512,967 515,591 410,074
Deferred income taxes 93,801 106,400 84,345
Other long-term items 75,108 32,610 51,650
Shareholders' equity 422,036 437,733 405,147
- ----------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,287,788 $1,285,447 $1,173,051
======================================================================
Total debt excluding
adjustment for fair value
hedge $501,964 $510,152 $453,240
Rock-Tenn Company Quarterly Statistics
Paperboard Group Operating Statistics
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- ----------
Average Price Per Ton (a)
- -------------------------
Coated & Specialty
Paperboard (b)
2001 $448 $445 $410 $428 $438
2002 424 410 410 425 417
2003 434 418 437 438 432
Corrugated Medium
2001 378 365 350 349 360
2002 342 337 331 346 339
2003 343 335 340 333 338
All Tons
2001 436 433 417 414 425
2002 410 398 397 413 405
2003 419 406 423 421 417
Average Recovered Paper
Cost
2001 74 68 66 67 69
2002 67 65 78 108 80
2003 82 78 88 86 83
Tons Shipped
- ------------
Coated
2001 118,799 119,624 117,576 125,952 481,951
2002 125,382 117,813 117,724 126,625 487,544
2003 117,566 128,606 126,292 125,363 497,827
Specialty (b)
2001 97,913 102,732 109,086 104,717 414,448
2002 98,538 112,408 117,652 114,367 442,965
2003 99,752 113,299 113,001 109,243 435,295
Corrugated Medium
2001 41,452 39,827 42,025 45,879 169,183
2002 43,556 42,541 43,960 44,797 174,854
2003 40,815 41,459 40,413 45,023 167,710
Total
2001 258,164 262,183 268,687 276,548 1,065,582
2002 267,476 272,762 279,336 285,789 1,105,363
2003 258,133 283,364 279,706 279,629 1,100,832
(a) The method of computation for the Average Recycled Paperboard and
Corrugated Medium Prices and the Weighted Average Recovered Paper
Cost has been revised, and the amounts restated, for all periods
shown, to better reflect their impact on our segment operating
results. The Average Recycled Paperboard and Corrugated Medium
Prices represent the average gross sales price per manufactured
ton shipped adjusted for volume discounts and freight billed or
allowed. The Average Recycled Paperboard and Corrugated Medium
Prices are not adjusted for payment discounts or sales returns and
allowances. The Weighted Average Recovered Paper Cost represents
the average cost of fiber per manufactured ton shipped, including
related freight and brokerage costs.
(b) Specialty Paperboard Average Price Per Ton and Tons Shipped
include tons shipped by Seven Hills Paperboard LLC, our joint
venture with LaFarge Corporation.
Rock-Tenn Company Quarterly Statistics
Segment Sales and Operating Income
(In Thousands)
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
--------- --------- --------- --------- ---------
Packaging Segment Sales
2001 $175,286 $185,747 $180,283 $187,911 $729,227
2002 177,684 177,606 182,841 184,554 722,685
2003 173,677 196,277 210,180 221,268 801,402
Packaging Income
2001 7,879 8,842 10,797 11,517 39,035
2002 9,995 11,904 13,695 10,553 46,147
2003 4,654 9,742 10,503 12,659 37,558
Return On Sales
2001 4.5% 4.8% 6.0% 6.1% 5.4%
2002 5.6% 6.7% 7.5% 5.7% 6.4%
2003 2.7% 5.0% 5.0% 5.7% 4.7%
Merchandising Displays and Corrugated Packaging Segment Sales
2001 57,629 65,525 65,571 73,859 262,584
2002 72,271 69,965 67,856 79,459 289,551
2003 73,710 64,214 70,350 76,832 285,106
Merchandising Displays and Corrugated Packaging Income
2001 2,751 8,525 8,328 10,642 30,246
2002 11,389 7,849 4,569 9,006 32,813
2003 6,907 5,073 6,672 9,093 27,745
Return on Sales
2001 4.8% 13.0% 12.7% 14.4% 11.5%
2002 15.8% 11.2% 6.7% 11.3% 11.3%
2003 9.4% 7.9% 9.5% 11.8% 9.7%
Paperboard Segment Sales
2001 131,435 133,145 130,499 129,426 524,505
2002 125,078 123,740 129,094 138,261 516,173
2003 123,136 130,742 130,307 131,889 516,074
Paperboard Income
2001 10,336 10,276 10,503 10,518 41,633
2002 6,287 6,348 9,033 2,426 24,094
2003 5,061 6,351 5,626 3,700 20,738
Return on Sales
2001 7.9% 7.7% 8.0% 8.1% 7.9%
2002 5.0% 5.1% 7.0% 1.8% 4.7%
2003 4.1% 4.9% 4.3% 2.8% 4.0%
Rock-Tenn Company Quarterly Statistics
Key Financial Statistics
(In Thousands except EPS Data)
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
--------- --------- --------- --------- ---------
Income From Continuing Operations Before
Cumulative Effect of a Change in Accounting Principle
2001 $2,692 $5,531 $7,890 $8,510 $24,623
2002 11,259 11,026 4,922 2,646 29,853
2003 4,945 7,131 7,853 9,612 29,541
Diluted EPS From Continuing Operations Before
Cumulative Effect of a Change in Accounting Principle
2001 $0.08 $0.17 $0.23 $0.25 $0.74
2002 0.33 0.32 0.14 0.08 0.87
2003 0.14 0.21 0.23 0.27 0.85
Income Before Cumulative Effect of a
Change in Accounting Principle
2001 $4,505 $7,318 $9,120 $9,294 $30,237
2002 12,199 11,584 5,471 3,216 32,470
2003 5,070 7,330 7,212 9,964 29,576
Diluted EPS Before Cumulative Effect of a
Change in Accounting Principle
2001 $0.13 $0.22 $0.27 $0.28 $0.90
2002 0.36 0.34 0.16 0.09 0.94
2003 0.15 0.21 0.21 0.28 0.85
Net Income
2001 $4,791 $7,318 $9,120 $9,294 $30,523
2002 6,355 11,584 5,471 3,216 26,626
2003 5,070 7,330 7,212 9,964 29,576
Diluted EPS
2001 $0.14 $0.22 $0.27 $0.28 $0.91
2002 0.19 0.34 0.16 0.09 0.77
2003 0.15 0.21 0.21 0.28 0.85
Depreciation & Amortization
2001 $18,324 $18,180 $18,676 $18,672 $73,852
2002 16,749 17,217 16,945 17,180 68,091
2003 17,953 17,502 17,791 19,437 72,683
Capital Expenditures
2001 $13,870 $14,496 $14,413 $17,857 $60,636
2002 9,038 16,656 23,887 23,120 72,701
2003 16,393 15,002 12,114 13,893 57,402
CONTACT: Rock-Tenn Company
Steven C. Voorhees, Executive VP & CFO
David Rees, Investor Relations
770-448-2193