Graphic Packaging Holding Company reported Net Income for fourth quarter 2022 of $156 million, or $0.50 per share, based on 309 million weighted average diluted shares. This compares to fourth quarter 2021 Net Income of $39 million, or $0.13 per share, based on 309 million weighted average diluted shares.
Fourth quarter 2022 Net Income was impacted by a net $25 million of special charges, that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these charges, Adjusted Net Income for the fourth quarter of 2022 was $181 million, or $0.59 per diluted share. This compares to fourth quarter 2021 Adjusted Net Income of $111 million, or $0.36 per diluted share. For the full year 2022, Net Income was $522 million, or $1.69 per share, based on 309 million weighted average diluted shares. This compares to 2021 Net Income of $204 million, or $0.68 per share, based on 298 million weighted average diluted shares.
Full year 2022 Net Income was impacted by a net $200 million of special charges that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these items, Adjusted Net Income for full year 2022 was $722 million, or $2.33 per diluted share. This compares to Adjusted Net Income for the full year of 2021 of $390 million, or $1.31 per diluted share.
Michael Doss, the Company's President and CEO said, "2022 was an excellent year of performance and execution by our global team. Financial results improved materially and are on pace to meet our Vision 2025 goals. Our continued innovation in fiber-based consumer packaging solutions drove a third consecutive year of net organic sales growth at or above the high-end of our targeted range. Our large acquisition in Europe has been integrated and is providing growth opportunities in new consumer markets while meeting our financial and synergy expectations. The state-of-the-art CRB machine in Kalamazoo, Michigan successfully ramped production and is on track to achieve an expected $130 million in incremental, annual EBITDA from the investment. Price execution, strong demand for innovative packaging solutions, acquisitions, and positive net productivity resulted in Adjusted EBITDA increasing 52% to $1.6 billion."
The Company's EVP and CFO, Stephen Scherger, added, "We delivered robust fourth quarter financial results despite a $20 million unfavorable impact to Adjusted EBITDA from the late December winter storm, which impacted paperboard production by approximately 40,000 tons. During the year, we reduced net debt by $526 million and, as committed, exited the year with net leverage of 3.2x, down from a proforma 4.6x at the end of 2021. We expect to grow Sales, Adjusted EBITDA, and Adjusted EPS in 2023 and further reduce net leverage to approximately 2.5x by year-end, while continuing to invest in our capabilities to drive growth."
Doss concluded, "We remain committed to our Vision 2025 goals and are pleased with our progress to date. Investments such as the CRB machine in Kalamazoo and other strategic initiatives are delivering real returns for shareholders and high-quality packaging for consumers. Our plans to build a new CRB mill in Waco, Texas and optimize our paperboard network over the next three years will extend our position as the lowest-cost, highest-quality paperboard producer in North America and enhance our ability to meet growing global demand for fiber-based consumer packaging."
TAPPI
http://www.tappi.org/