UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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(Mark One) |
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x |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarterly Period Ended June 30, 2004 |
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or |
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o |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to
Commission file number 1-15399
PACKAGING CORPORATION OF
AMERICA
(Exact Name of Registrant as
Specified in its Charter)
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Delaware |
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36-4277050 |
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1900 West Field Court |
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60045 |
(847) 482-3000
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former name, former
address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No o
As of August 2, 2004, the Registrant had outstanding 106,792,751 shares of common stock, par value $0.01 per share.
Packaging
Corporation of America
Condensed Consolidated Balance Sheets
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June 30, |
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December 31, |
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(In thousands, except share and per share amounts) |
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(unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
91,181 |
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$ |
172,022 |
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Accounts and notes receivable, net of allowance for doubtful accounts of $4,824 and $5,303 as of June 30, 2004 and December 31, 2003, respectively |
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206,892 |
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191,405 |
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Inventories |
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166,247 |
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166,312 |
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Prepaid expenses and other current assets |
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16,265 |
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7,635 |
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Deferred income taxes |
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24,083 |
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29,703 |
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Total current assets |
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504,668 |
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567,077 |
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Property, plant and equipment, net |
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1,371,557 |
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1,372,823 |
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Goodwill and other intangible assets, net of accumulated amortization of $2,407 and $2,079 as of June 30, 2004 and December 31, 2003, respectively |
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19,793 |
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5,495 |
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Other long-term assets |
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39,143 |
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39,731 |
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Total assets |
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$ |
1,935,161 |
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$ |
1,985,126 |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Short-term debt and current maturities of long-term debt |
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$ |
109,099 |
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$ |
112,763 |
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Accounts payable |
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114,239 |
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126,924 |
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Accrued interest |
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12,572 |
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13,511 |
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Accrued liabilities |
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72,181 |
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89,779 |
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Total current liabilities |
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308,091 |
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342,977 |
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Long-term liabilities: |
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Long-term debt |
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585,569 |
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585,198 |
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Deferred income taxes |
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226,363 |
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230,949 |
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Other liabilities |
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33,568 |
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28,522 |
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Total long-term liabilities |
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845,500 |
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844,669 |
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Shareholders’ equity: |
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Common stock (par value $.01 per share, 300,000,000 shares authorized, 106,444,088 shares and 105,651,123 shares issued as of June 30, 2004 and December 31, 2003, respectively) |
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1,064 |
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1,056 |
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Additional paid in capital |
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485,371 |
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473,097 |
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Retained earnings |
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273,805 |
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298,869 |
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Accumulated other comprehensive income: |
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Unrealized gain on derivatives, net |
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24,030 |
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25,584 |
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Cumulative foreign currency translation adjustment |
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28 |
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23 |
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Total accumulated other comprehensive income |
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24,058 |
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25,607 |
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Unearned compensation on restricted stock |
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(2,728 |
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(1,149 |
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Total shareholders’ equity |
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781,570 |
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797,480 |
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Total liabilities and shareholders’ equity |
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$1,935,161 |
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$ |
1,985,126 |
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See notes to condensed consolidated financial statements.
2
Packaging
Corporation of America
Condensed Consolidated Statements of Operations
(unaudited)
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Three Months Ended |
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(In thousands, except per share amounts) |
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2004 |
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2003 |
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Net sales |
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$ |
467,393 |
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$ |
436,470 |
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Cost of sales |
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(394,569 |
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(357,979 |
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Gross profit |
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72,824 |
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78,491 |
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Selling and administrative expenses |
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(32,428 |
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(31,285 |
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Corporate overhead |
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(10,484 |
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(10,787 |
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Other income (expense), net |
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256 |
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(3,104 |
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Income before interest and taxes |
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30,168 |
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33,315 |
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Interest expense, net |
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(7,544 |
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(15,716 |
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Income before taxes |
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22,624 |
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17,599 |
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Provision for income taxes |
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(8,998 |
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(6,925 |
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Net income |
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$ |
13,626 |
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$ |
10,674 |
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Weighted average common shares outstanding: |
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Basic |
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106,157 |
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104,419 |
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Diluted |
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107,454 |
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106,221 |
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Net income per common share: |
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Basic |
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$ |
0.13 |
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$ |
0.10 |
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Diluted |
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$ |
0.13 |
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$ |
0.10 |
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Dividends declared per common share |
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$ |
0.15 |
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$ |
— |
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See notes to condensed consolidated financial statements.
3
Packaging
Corporation of America
Condensed Consolidated Statements of Operations
(unaudited)
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Six Months Ended |
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(In thousands, except per share amounts) |
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2004 |
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2003 |
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Net sales |
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$ |
898,660 |
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$ |
859,738 |
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Cost of sales |
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(785,620 |
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(709,082 | |||