The company reported net sales of $429.7 million for the second quarter of 2017, down 1.6% compared to net sales of $436.7 million for the second quarter of 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2017 were $8.0 million, or $0.48 per diluted share, compared to net earnings of $20.9 million, or $1.21 per diluted share, for the second quarter of 2016.
The decrease in net earnings was due primarily to a planned bi-annual major maintenance outage at the Company’s Arkansas mill in the second quarter of 2017 and higher input costs for energy, pulp, chemicals, and packaging supplies. Excluding certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, second quarter 2017 adjusted net earnings were $7.9 million, or $0.48 per diluted share, compared to second quarter 2016 adjusted net earnings of $23.5 million, or $1.37 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $45.7 million for the second quarter of 2017 compared to $62.2 million for the second quarter of 2016. Adjusted EBITDA for the quarter was $45.0 million, down 32.1% compared to second quarter 2016 Adjusted EBITDA of $66.3 million. The $21.3 million decrease in adjusted EBITDA was primarily a result of the same major maintenance and higher input costs affecting GAAP net earnings in the second quarter of 2017.
“We achieved solid second quarter results that were in line with our quarterly outlook,” said Linda K. Massman, president and chief executive officer. “The positive impacts to the quarter included higher prices and a stronger sales mix for paperboard, which were offset by higher external pulp pricing and lower consumer product shipment volumes, as parent rolls were used to build needed inventory.
I am also pleased to share that our previously disclosed strategic projects remain on time and within budget, and we continue to believe this will position us to more efficiently partner with and meet the needs of our customers in the future,” said Massman.
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