Packaging Corporation of America (PKG) Q4 2022 Earnings Call Transcript

Packaging Corporation of America (NYSE:PKG) Q4 2022 Earnings Conference Call January 26, 2023 9:00 AM ET

Company Participants

Mark Kowlzan - Chairman and Chief Executive Officer

Thomas Hassfurther - Executive Vice President, Corrugated Products

Robert Mundy - Executive Vice President and Chief Financial Officer

Conference Call Participants

George Staphos - Bank of America Merrill Lynch

Michael Roxland - Truist Securities

Mark Weintraub - Seaport Research Partners

Cleveland Rueckert - UBS

Kyle White - Deutsche Bank

Gabrial Hajde - Wells Fargo Securities

Adam Josephson - KeyBanc Capital Markets

Philip Ng - Jefferies

Anthony Pettinari - Citigroup

Operator

Good day, everyone. Thank you for joining Packaging Corporation of America's Fourth Quarter and Full Year 2022 Earnings Results Conference Call. Your host will be Mark Kowlzan, Chairman and Chief Executive Officer of PCA. Upon conclusion of his narrative, there will be a question-and-answer session. Please also note today's conference call is being recorded.

At this time, I'd like to turn the call over to Mr. Kowlzan. Please proceed when you are ready.

Mark Kowlzan

Thank you, Jamie. Good morning, and thank you all for participating in Packaging Corporation of America's Fourth Quarter and Full Year 2022 Earnings Release Conference Call. Again, I'm Mark Kowlzan, Chairman and CEO of PCA. And with me on the call today is Tom Hassfurther, Executive Vice President, who runs our packaging business; and Bob Mundy, our Chief Financial Officer.

I'll begin the call with an overview of our fourth quarter and full year results, and then I'm going to be turning the call over to Tom and Bob, who'll provide further details. And then I'll wrap things up, and we'd be glad to take questions.

Yesterday, we reported fourth quarter 2022 net income of $212 million or $2.31 per share. Excluding special items, fourth quarter 2022 net income was $215 million or $2.35 per share compared to the fourth quarter of 2021 net income of $262 million or $2.76 per share.

Fourth quarter net income -- fourth quarter net sales were $1.98 billion in 2022 and $2.04 billion in 2021. Total company EBITDA for the fourth quarter, excluding special items, was $409 million in 2022 and $463 million in 2021. Excluding special items, we also reported full year 2022 earnings of $1.04 billion or $11.14 per share compared to 2021 earnings of $894 million or $9.39 per share. Net sales were $8.5 billion in 2022 and $7.7 billion in 2021. Excluding special items, total company EBITDA in 2022 was $1.9 billion compared to $1.7 billion in 2021.