NORCROSS, Ga. , Jan. 28, 2014 (GLOBE NEWSWIRE) -- RockTenn (NYSE:RKT) today reported earnings for the quarter ended December 31, 2013 of $1.50 per diluted share and adjusted earnings of $1.66 per diluted share. Adjusted earnings per diluted share increased 23% over the prior year quarter.

First Quarter Results

• Net sales of $2,363 million for the first quarter of fiscal 2014 increased $76 million compared to the first quarter of fiscal 2013. Segment income of $235 million increased $26 million or 13% over the prior year quarter.
• RockTenn's restructuring and other costs and operating losses and transition costs due to plant closures for the first quarter of fiscal 2014 were $0.16 per diluted share after-tax. These costs primarily consisted of $10 million of pre-tax facility closure charges and $7 million of pre-tax acquisition and integration costs. The pre-tax facility closure charges primarily consisted of equipment impairments and carrying costs for facilities acquired in the Smurfit-Stone acquisition.

Chief Executive Officer's Statement

RockTenn Chief Executive Officer, Steve Voorhees, stated, "The success of our team in executing our strategy drove our 23% increase in adjusted earnings per share over the prior year quarter. We used our cash flow in the quarter to buy back $53 million of RockTenn stock, acquire NPG for $60 million , pay dividends of $26 million and reduce our leverage ratio from 1.95 to 1.84 times. We expect to continue to improve our business performance and generate strong free cash flow during the remainder of fiscal 2014."

Segment Results

In the first quarter of fiscal 2014, we announced a realignment of our operating responsibilities and a related change to our segments for financial reporting purposes. The changes primarily reflect the creation of a Merchandising Displays segment which was removed from the Consumer Packaging segment. We have reclassified prior results to the extent presented herein and we filed a Current Report on Form 8-K with the SEC on December 17, 2013 , to present reclassified historical information in accordance with our new reportable segment structure.

Mill and Converting Tons Shipped

Corrugated Packaging segment shipments of approximately 1,814,000 tons decreased approximately 3.6% or approximately 67,000 tons compared to the prior year quarter due to lower customer demand for containerboard and corrugated containers. In the quarter, we took approximately 250,000 tons of downtime including approximately 157,000 tons of economic downtime and slowbacks. Consumer Packaging segment shipments of approximately 378,000 tons increased 2.6% or approximately 10,000 tons compared to the prior year quarter primarily due to higher converting shipments.

Corrugated Packaging Segment

Corrugated Packaging segment net sales increased $62 million to $1,652 million and segment income increased $20 million to $158 million in the first quarter of fiscal 2014 compared to the prior year quarter. The increased sales and earnings are primarily related to higher selling prices which were partially offset by lower volumes and higher commodity and other costs. Corrugated Packaging segment EBITDA margin was 16.3% for the first quarter of fiscal 2014 up 90 basis points over the prior year quarter.

Consumer Packaging Segment

Consumer Packaging segment net sales increased $19 million and segment income increased $3 million in the first quarter of fiscal 2014 compared to the prior year quarter. Segment income was impacted primarily by higher selling prices and converting volumes which were partially offset by higher commodity and other costs. Consumer Packaging segment EBITDA margin was 16.9% for the first quarter of fiscal 2014, essentially flat compared to the prior year quarter.

Merchandising Displays Segment

Merchandising Displays segment net sales increased $23 million over the prior year first quarter to $185 million primarily due to higher volumes. Segment income increased $8 million in the first quarter of fiscal 2014 compared to the prior year quarter primarily due to the impact of higher volumes. Merchandising Displays segment EBITDA margin was 11.9% for the first quarter of fiscal 2014 up 290 basis points over the prior year quarter.

Recycling Segment

Recycling segment net sales decreased $27 million over the prior year first quarter to $100 million primarily as the impact of lower volumes due primarily to soft export markets for recovered fiber and several collection facility closures which were partially offset by increased selling prices. Segment income decreased $4 million in the first quarter of fiscal 2014 compared to the prior year quarter primarily due to impact of lower volumes and market conditions which were partially offset by the impact of cost structure improvements.

Cash Provided From Operating, Financing and Investing Activities

Cash provided by operations was $305 million in the first quarter of fiscal 2014 up $27 million compared to the prior year quarter, after pension funding in excess of expense of $35 million . We reduced net debt (as defined) by $80 million in the December quarter to $2.73 billion and at December 31, 2013 , our Leverage Ratio (as defined) was 1.84 times. Total debt was $2.75 billion at December 31, 2013 . We invested $101 million in capital expenditures, repurchased $53 million of shares, returned $26 million in dividends to our shareholders and acquired NPG Holding, Inc. , a specialty display company, for $60 million . 

Conference Call

We will host a conference call to discuss our results of operations for the first quarter of fiscal 2014 and other topics that may be raised during the discussion at 9:00 a.m., Eastern Time , on January 29, 2014 . The conference call will be webcast live with an accompanying slide presentation, along with a copy of this press release, at www.rocktenn.com .

Investors who wish to participate in the webcast via teleconference should dial 888-790-4710 (inside the U.S.) or 773-756-0961 (outside the U.S.) at least 15 minutes prior to the start of the call and enter the passcode ROCKTENN. Replays of the call will be available through February 12, 2014 and can be accessed at 866-351-2785 (U.S. callers) and 203-369-0055 (outside the U.S.).

About RockTenn

RockTenn (NYSE:RKT) is one of North America's leading integrated manufacturers of corrugated and consumer packaging. RockTenn's 26,000 employees are committed to exceeding their customers' expectations - every time. The Company operates locations in the United States , Canada , Mexico , Chile and Argentina . For more information, visit www.rocktenn.com .

Cautionary Statements

Statements in this release that do not relate strictly to historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and use words such as will, estimate, anticipate, project, intend, or expect, or refer to future time periods, and include statements made in this report regarding, among other things our belief that we expect to continue to improve our business performance and generate strong free cash flow during the remainder of fiscal 2014. These statements are subject to certain risks and uncertainties including with respect to our expectations regarding economic, competitive and market conditions generally; expected volumes and price levels of purchases by customers; fiber and energy costs; costs associated with facility closures; competitive conditions in our businesses and possible adverse actions of our customers, our competitors and suppliers. These expectations are based on assumptions that management believes are reasonable; however, undue reliance should not be placed on these forward-looking statements because these risks and uncertainties could cause actual results to differ materially from those contained in any forward-looking statements. There are many other factors and uncertainties that impact these forward-looking statements that we cannot predict accurately, including our ability to achieve benefits from the Smurfit-Stone acquisition, including synergies, performance improvements and successful implementation of capital projects. Further, our business is subject to a number of general risks that would affect any such forward-looking statements including, among others, decreases in demand for our products; increases in energy, raw materials, shipping and capital equipment costs; reduced supply of raw materials; fluctuations in selling prices and volumes; intense competition; the potential loss of certain key customers; changes in environmental and other governmental regulation; and adverse changes in general market and industry conditions. These risks are more particularly described in our filings with the Securities and Exchange Commission , including under the caption "Business―Forward-Looking Information" and "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013 . The information contained in this release speaks as of the date hereof and we do not undertake any obligation to update this information as future events unfold.