Rock-Tenn reports $1.3 billion liquidity, repays $92 million debt in Q2

By Lisa Kerner

Charlotte, N.C., April 24 - Rock-Tenn Co. reported total liquidity of more than $1.3 billion at the March 31 end of the second quarter of fiscal 2013.

"At the end of March, our net debt was $3.1 billion, our credit agreement EBITDA was $1.22 billion, and our credit agreement debt-to-EBITDA leverage ratio was 2.65 times," chairman and chief executive officer James A. Rubright said on Wednesday during a conference call to discuss the results.

Rock-Tenn reduced debt by $92 million during the quarter and generated over $1 billion of cash from operations for the last 12 months, Rubright said.

Also during the month, S&P put the company on positive outlook, "implying our corporate credit rating may improve from BBB- to BBB" in the near term, said Rubright.

Financial highlights

Rock-Tenn reported earnings for the quarter of $4.45 per diluted share and adjusted earnings of $1.12 per diluted share. Adjusted earnings per share increased 15% over the prior-year quarter, according to a company news release.

Net sales for the quarter were up $42 million from the prior-year period at about $2.3 billion.

Net sales for the corrugated packaging segment were up $103 million to about $1.6 billion, while net sales for the consumer packaging segment were down $21 million from the prior-year second quarter.

Recycling net sales decreased $25 million over the prior-year second quarter to $271 million primarily as a result of lower volume.

Rock-Tenn is a Norcross, Ga., manufacturer of corrugated and consumer packaging and recycling solutions.

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