Graphic Packaging Holding Company reported net income for 4Q 2016 of $34.9 million, based upon 317.9 million weighted average diluted shares.This compares to 4Q 2015 net income of $57.2 million, or $0.17 per share, based on 329.6 million weighted average diluted shares.
For the full year 2016, net income was $228 million, or $0.71 per share, based upon 321.5 million weighted average diluted shares. This compares to 2015 net income of $230.1 million, or $0.70 per share, based on 330.7 million weighted average diluted shares.
"While our 4Q Adjusted EBITDA was down modestly versus the prior year period due to accelerating commodity input costs and foreign exchange headwinds, we were encouraged by a return of core volume during the quarter and strong operating performance. Volume in our core business improved in the 4Q compared to the 3Q, and our mill and converting facilities operated well," said President and CEO Michael Doss. "Net sales were up 3.2% largely driven by acquisitions. Volume in our core business was flat in the 4Q versus the prior year period, compared to a 1.4% decline in the 3Q. Adjusted EBITDA was $175.1 million, down 3.1% compared to the prior year period of $180.7 million. For the full year 2016, Adjusted EBITDA was $763.8 million, up 1.7% compared to the prior year period of $751.2 million reflecting the benefits of acquisitions and strong productivity, partly offset by lower pricing, accelerating commodity input costs in the 4Q, and foreign exchange headwinds."
Net sales increased 3.2% to $1,057.2 million in the 4Q 2016, compared to $1,024.9 million in the prior year period.The $32.3 million increase was driven by $64.5 million of improved volume/mix related to acquisitions.
Net sales increased 3.3% to $4,298.1 million in 2016, compared to $4,160.2 million in the prior year.The $137.9 million increase was driven by $219.2 million of improved volume/mix related to acquisitions.
EBITDA for 4Q 2016 was $161.2 million, or $11.5 million lower than the 4Q 2015.After adjusting both periods for business combinations and other special charges, Adjusted EBITDA decreased 3.1% to $175.1 million in the 4Q 2016 from $180.7 million in the 4Q 2015. When comparing against the prior year quarter, Adjusted EBITDA in the 4Q 2016 was positively impacted by $20.8 million of improved net operating performance and $4.6 million of favorable volume/mix.
EBITDA for the full year 2016 was $723.4 million, or $4.6 million lower than the full year 2015. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA increased 1.7% to $763.8 million in the full year 2016 from $751.2 million in the full year 2015.When comparing against the prior year, Adjusted EBITDA in 2016 was positively impacted by $72.7 million of improved net operating performance and $15.4 million of favorable volume/mix.
Graphic Packaging Holding Company is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage and other consumer product companies.
