BOISE, Idaho, Aug. 3 /PRNewswire-FirstCall/ -- Boise Inc.
(NYSE: BZ) today reported net income of $13.3 million or $0.16 per diluted share for second quarter 2010
compared with net income of $50.9
million or $0.60 per diluted
share for second quarter 2009. Net income excluding special
items was $11.4 million or
$0.14 per diluted share in second
quarter 2010 compared with $3.3
million or $0.04 per diluted
share in second quarter 2009.
EBITDA excluding special items was $67.0
million for second quarter 2010 compared with $53.0 million for second quarter 2009.
|
FINANCIAL HIGHLIGHTS
|
|
|
(in millions, except per-share
data)
|
|
|
|
|
|
|
|
|
|
2Q 2010
|
|
2Q 2009
|
|
1Q 2010
|
|
|
|
|
|
|
|
|
|
Sales
|
$ 521.6
|
|
$ 479.4
|
|
$ 494.1
|
|
|
Net income (loss)
|
$ 13.3
|
|
$ 50.9
|
|
$ (12.7)
|
|
|
Net income (loss) per diluted
share
|
$ 0.16
|
|
$ 0.60
|
|
$ (0.16)
|
|
|
Net income excluding special
items (a)
|
$ 11.4
|
|
$ 3.3
|
|
$ 3.0
|
|
|
Net income excluding special
items per diluted share (a)
|
$ 0.14
|
|
$ 0.04
|
|
$ 0.04
|
|
|
EBITDA (b)
|
$ 70.1
|
|
$ 130.6
|
|
$ 29.3
|
|
|
EBITDA excluding special items
(b)
|
$ 67.0
|
|
$ 53.0
|
|
$ 54.9
|
|
|
|
|
|
|
|
|
|
Net total debt at quarter end
(c)
|
$ 657.1
|
|
$ 901.7
|
|
$ 693.9
|
|
|
|
|
|
|
|
|
|
(a)
For reconciliation of net income (loss) to net income
excluding special items, see "Summary Notes to
Consolidated
Financial Statements and Segment
Information."
|
|
|
(b)
For reconciliation of net income (loss) to EBITDA and EBITDA
to EBITDA excluding special items, see "Summary Notes
to Consolidated Financial
Statements and Segment Information."
|
|
|
(c)
For reconciliation of total debt to net total debt, see
"Summary Notes to Consolidated Financial Statements and
Segment
Information."
|
|
|
|
|
|
|
|
"During the second quarter, we began to benefit from improving
pricing trends in both packaging and paper markets and experienced
growth in our packaging and packaging demand-driven paper
businesses," said Alexander Toeldte, President and Chief Executive
Officer of Boise Inc. "Shipments in our corrugated packaging
business were up 17% over the prior year, and sales volumes
of our premium office, label and release, and flexible packaging
products grew 14% over the prior year period. During the
second quarter, we completed planned annual outages at our
International Falls and Wallula mills. Looking ahead to the
third quarter, we have no planned annual maintenance outages and
expect to continue to benefit from the recently implemented price
increases."
Sales
Total sales for second quarter 2010 were $521.6 million, up $42.2
million, or 9%, from $479.4
million for second quarter 2009 and up $27.5 million from first quarter 2010 sales of
$494.1 million.
Paper segment sales increased $7.8
million during second quarter 2010 compared with second
quarter 2009 due primarily to increased sales prices.
Packaging segment sales increased $35.9 million during second quarter 2010 compared
with second quarter 2009 driven by higher sales volumes for
corrugated products and newsprint and higher sales prices for
linerboard and newsprint. These increases were offset
partially by lower sales prices of corrugated products compared
with the prior year.
Prices and Volumes
Pricing for uncoated freesheet improved in second quarter 2010
compared with second quarter 2009 and first quarter 2010.
Average net selling prices for uncoated freesheet papers
increased $12 per ton, or 1%, to
$970 per ton during second quarter
2010 compared with second quarter 2009 and increased $29 per ton from first quarter 2010. In
first quarter 2010, we implemented a $40-per-ton price increase across most of our
uncoated freesheet grades, including cut-size office papers,
offset, and midweight opaque grades. In April 2010, we announced a $60-per-ton price increase effective in May
across virtually all of our uncoated office papers and printing and
converting grades, from which we expect to further benefit
beginning in third quarter 2010. Overall, uncoated freesheet
sales volumes were 312,000 tons during second quarter 2010, a
decrease of 1% versus the prior year period, and flat from first
quarter 2010. Combined sales volumes of premium office, label
and release, and flexible packaging papers, which represented 32%
of our total second quarter 2010 uncoated freesheet sales volumes,
increased by 14% compared with second quarter 2009.
Corrugated container and sheet sales volumes improved 17% during
second quarter 2010 compared with second quarter 2009 and increased
4% from first quarter 2010. This increase was due primarily
to increased sales of sheets from our sheet feeder plant in
Texas as a result of improving
industrial markets in the area. Corrugated container and
sheet prices increased 6% sequentially from first quarter 2010
driven by higher selling prices for containerboard.
Corrugated container and sheet prices decreased 5% in second
quarter 2010 from second quarter 2009 driven primarily by an
increased sales mix of corrugated sheets relative to corrugated
containers.
Linerboard net selling prices to third parties increased
$38 per ton, or 13%, to $340 per ton in second quarter 2010 compared with
$302 per ton in second quarter 2009
and improved $44 per ton sequentially
from first quarter 2010. In first quarter 2010, we
implemented a $50-per-ton and
$70-per-ton price increase on
domestic linerboard sales in the eastern and western U.S.,
respectively. During second quarter, we implemented an
additional $60-per-ton increase on
domestic linerboard sales. In July, we announced an
additional $60-per-ton increase on
domestic linerboard sales effective on August orders.
Linerboard sales volumes to third parties were 54,000 tons
during second quarter 2010, flat from second quarter 2009.
Third-party sales volumes decreased 13% sequentially from
first quarter 2010 as improved sales volumes in our corrugated
product and sheet operations during second quarter 2010 resulted in
less linerboard available for sales to third parties.
Input Costs
Total fiber, energy, and chemical costs for second quarter 2010
were $215.1 million, an increase of
$31.4 million, or 17%, compared with
costs of $183.7 million for second
quarter 2009. The increase was driven primarily by higher
fiber costs and higher consumption of all inputs due to increased
production volumes.
|
INPUT COST SUMMARY
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
2Q 2010
|
|
2Q 2009
|
|
1Q 2010
|
|
|
|
|
|
|
|
|
|
Fiber
|
$ 117.1
|
|
$ 92.2
|
|
$ 115.5
|
|
|
Energy
|
48.1
|
|
40.5
|
|
63.4
|
|
|
Chemicals
|
49.9
|
|
51.0
|
|
49.1
|
|
|
Total
|
$ 215.1
|
|
$ 183.7
|
|
$ 228.0
|
|
|
|
|
|
|
|
Total fiber costs during second quarter 2010 were $117.1 million, an increase of $24.9 million, or 27%, from $92.2 million incurred in second quarter 2009.
This was due to higher purchased pulp prices and increased
fiber consumption. Fiber costs in second quarter 2010
increased $1.6 million, or 1%,
compared with $115.5 million in first
quarter 2010.
Energy costs in second quarter 2010 were $48.1 million, an increase of $7.6 million, or 19%, compared with $40.5 million in second quarter 2009. This
was driven by increased consumption of energy due to higher
production volumes, offset partially in the Paper segment by lower
electrical prices and more favorable energy mix. Energy costs
in second quarter 2010 decreased $15.3
million, or 24%, from $63.4
million in first quarter 2010 due to seasonal decreases in
consumption and lower natural gas prices.
Chemical costs in second quarter 2010 were $49.9 million, a decrease of $1.1 million, or 2%, compared with $51.0 million in second quarter 2009 as lower
prices were offset partially by higher consumption of commodity
chemicals. Chemical costs were up $0.8
million, or 2%, compared with $49.1
million in first quarter 2010 due to higher prices.
Webcast and Conference Call
Boise Inc. will host a webcast and conference call on
Tuesday, August 3, 2010, at
12:00 p.m. ET, at which time we will
review the company's recent performance. To participate in
the conference call, dial 866-841-1001 (international callers
should dial 832-4451689). The webcast may be accessed through
Boise's Internet site and will be
archived for one year following the call. Go to
www.BoiseInc.com and click on the link to the webcast under
Webcasts & Presentations on the Investors drop-down menu.
A replay of the conference call will be available in Webcasts
& Presentations from August 3 at
3:00 p.m. ET through August 31 at 11:45 p.m.
ET. Playback numbers are 800-642-1687 for U.S. callers
and 706-645-9291 for international callers. The passcode is
88822731.
About Boise Inc.
Headquartered in Boise, Idaho,
Boise Inc. (NYSE: BZ) manufactures packaging products and papers
including corrugated containers, containerboard, label and release
and flexible packaging papers, imaging papers for the office and
home, printing and converting papers, newsprint, and market pulp.
Our employees are committed to delivering excellent value
while managing our businesses to sustain environmental resources
for future generations. Visit our website at
www.BoiseInc.com.
Forward-Looking Statements
This news release contains statements that are "forward looking"
as defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future
results, performance, or achievements. Forward-looking
statements involve risks and uncertainties, including but not
limited to economic, competitive, and technological factors outside
our control that may cause our business, strategy, or actual
results to differ materially from the forward-looking statements.
Statements regarding announced price increases on our
products and the benefits we expect to derive from such increases
are considered forward looking; accordingly, there can be no
assurance that we will be able to implement or realize all or any
part of such price increases. For further information about
the risks and uncertainties associated with our business, please
refer to our filings with the Securities and Exchange Commission.
The company does not intend, and undertakes no obligation, to
update any forward-looking statements.
|
Boise Inc.
Consolidated Statements of
Income (Loss)
(unaudited, dollars and shares
in thousands, except per-share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
Sales
|
|
|
|
|
|
|
|
Trade
|
$ 511,012
|
|
$ 469,877
|
|
$ 485,851
|
|
|
Related parties
|
10,549
|
|
9,490
|
|
8,254
|
|
|
521,561
|
|
479,367
|
|
494,105
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Materials, labor, and other
operating expenses
|
419,594
|
|
386,013
|
|
408,485
|
|
|
Fiber costs from related
parties
|
5,168
|
|
8,933
|
|
9,831
|
|
|
Depreciation, amortization, and
depletion
|
32,267
|
|
32,892
|
|
32,131
|
|
|
Selling and distribution
expenses
|
14,254
|
|
14,024
|
|
13,734
|
|
|
General and administrative
expenses
|
12,569
|
|
12,691
|
|
11,459
|
|
|
St. Helens mill
restructuring
|
(434)
|
|
1,133
|
|
128
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(75,337)
|
|
-
|
|
|
Other (income) expense,
net
|
(11)
|
|
2,434
|
|
(303)
|
|
|
483,407
|
|
382,783
|
|
475,465
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
38,154
|
|
96,584
|
|
18,640
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
(323)
|
|
1,157
|
|
687
|
|
|
Change in fair value of interest
rate derivatives
|
(13)
|
|
627
|
|
(29)
|
|
|
Loss on extinguishment of
debt
|
(28)
|
|
-
|
|
(22,197)
|
|
|
Interest expense
|
(16,165)
|
|
(21,389)
|
|
(16,445)
|
|
|
Interest income
|
61
|
|
91
|
|
37
|
|
|
(16,468)
|
|
(19,514)
|
|
(37,947)
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
21,686
|
|
77,070
|
|
(19,307)
|
|
|
Income tax (provision)
benefit
|
(8,376)
|
|
(26,187)
|
|
6,622
|
|
|
Net income (loss)
|
$ 13,310
|
|
$ 50,883
|
|
$ (12,685)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
80,624
|
|
78,142
|
|
79,800
|
|
|
Diluted
|
84,093
|
|
84,254
|
|
79,800
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.17
|
|
$
0.65
|
|
$
(0.16)
|
|
|
Diluted
|
$
0.16
|
|
$
0.60
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
(unaudited, dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
Segment sales
|
|
|
|
|
|
|
|
Paper
|
$ 364,199
|
|
$ 356,401
|
|
$ 353,489
|
|
|
Packaging
|
166,143
|
|
130,237
|
|
148,154
|
|
|
Intersegment eliminations and
other
|
(8,781)
|
|
(7,271)
|
|
(7,538)
|
|
|
$ 521,561
|
|
$ 479,367
|
|
$ 494,105
|
|
|
|
|
|
|
|
|
|
Segment income
(loss)
|
|
|
|
|
|
|
|
Paper (1)
|
$ 25,708
|
|
$ 84,505
|
|
$ 29,943
|
|
|
Packaging (1)
|
17,105
|
|
20,330
|
|
(5,770)
|
|
|
Corporate and Other
(1)
|
(4,982)
|
|
(7,094)
|
|
(4,846)
|
|
|
37,831
|
|
97,741
|
|
19,327
|
|
|
|
|
|
|
|
|
|
Change in fair value of interest
rate derivatives
|
(13)
|
|
627
|
|
(29)
|
|
|
Loss on extinguishment of
debt
|
(28)
|
|
-
|
|
(22,197)
|
|
|
Interest expense
|
(16,165)
|
|
(21,389)
|
|
(16,445)
|
|
|
Interest income
|
61
|
|
91
|
|
37
|
|
|
Income (loss) before income
taxes
|
$ 21,686
|
|
$ 77,070
|
|
$ (19,307)
|
|
|
|
|
|
|
|
|
|
EBITDA (2)
|
|
|
|
|
|
|
|
Paper (1)
|
$ 47,406
|
|
$ 105,604
|
|
$ 51,412
|
|
|
Packaging (1)
|
26,684
|
|
31,108
|
|
3,926
|
|
|
Corporate and Other (1)
(3)
|
(4,020)
|
|
(6,079)
|
|
(26,077)
|
|
|
$ 70,070
|
|
$ 130,633
|
|
$ 29,261
|
|
|
|
|
|
|
|
|
|
(1) The
three months ended June 30, 2009, included $57.0 million of income
recorded in the Paper
segment, $19.9 million of income
recorded in the Packaging segment, and $1.6 million of
expenses recorded in the
Corporate and Other segment relating to alternative fuel
mixture
credits. These amounts are net
of fees and expenses and before taxes.
(2) See
Summary Notes to Consolidated Financial Statements and Segment
Information for a
reconciliation of our EBITDA to
net income (loss).
(3) The
three months ended March 31, 2010, included $22.2 million of loss
on extinguishment of
debt.
|
|
|
|
|
|
|
|
|
Boise Inc.
Consolidated Statements of
Income
(unaudited, dollars and shares
in thousands, except per-share data)
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30
|
|
|
2010
|
|
2009
|
|
|
Sales
|
|
|
|
|
|
Trade
|
$ 996,863
|
|
$ 954,745
|
|
|
Related parties
|
18,803
|
|
24,907
|
|
|
1,015,666
|
|
979,652
|
|
|
Costs and
expenses
|
|
|
|
|
|
Materials, labor, and other
operating expenses
|
828,079
|
|
799,152
|
|
|
Fiber costs from related
parties
|
14,999
|
|
14,636
|
|
|
Depreciation, amortization, and
depletion
|
64,398
|
|
64,864
|
|
|
Selling and distribution
expenses
|
27,988
|
|
27,806
|
|
|
General and administrative
expenses
|
24,028
|
|
23,064
|
|
|
St. Helens mill
restructuring
|
(306)
|
|
4,781
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(75,337)
|
|
|
Other (income) expense,
net
|
(314)
|
|
2,673
|
|
|
958,872
|
|
861,639
|
|
|
|
|
|
|
|
Income from
operations
|
56,794
|
|
118,013
|
|
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
364
|
|
479
|
|
|
Change in fair value of interest
rate derivatives
|
(42)
|
|
495
|
|
|
Loss on extinguishment of
debt
|
(22,225)
|
|
-
|
|
|
Interest expense
|
(32,610)
|
|
(43,543)
|
|
|
Interest income
|
98
|
|
145
|
|
|
(54,415)
|
|
(42,424)
|
|
|
|
|
|
|
|
Income before income
taxes
|
2,379
|
|
75,589
|
|
|
Income tax (provision)
benefit
|
(1,754)
|
|
(25,622)
|
|
|
Net income
|
$
625
|
|
$ 49,967
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
Basic
|
80,214
|
|
77,818
|
|
|
Diluted
|
84,143
|
|
81,906
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
Basic
|
$
0.01
|
|
$
0.64
|
|
|
Diluted
|
$
0.01
|
|
$
0.61
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
(unaudited, dollars in
thousands)
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30
|
|
|
2010
|
|
2009
|
|
|
Segment sales
|
|
|
|
|
|
Paper
|
$
717,688
|
|
$ 708,396
|
|
|
Packaging
|
314,297
|
|
287,369
|
|
|
Intersegment eliminations and
other
|
(16,319)
|
|
(16,113)
|
|
|
$ 1,015,666
|
|
$ 979,652
|
|
|
|
|
|
|
|
Segment income
|
|
|
|
|
|
Paper (1)
|
$
55,651
|
|
$ 109,281
|
|
|
Packaging (1)
|
11,335
|
|
21,455
|
|
|
Corporate and Other (1)
(2)
|
(9,828)
|
|
(12,244)
|
|
|
57,158
|
|
118,492
|
|
|
|
|
|
|
|
Change in fair value of interest
rate derivatives
|
(42)
|
|
495
|
|
|
Loss on extinguishment of
debt
|
(22,225)
|
|
-
|
|
|
Interest expense
|
(32,610)
|
|
(43,543)
|
|
|
Interest income
|
98
|
|
145
|
|
|
Income (loss) before income
taxes
|
$
2,379
|
|
$ 75,589
|
|
|
|
|
|
|
|
EBITDA (2)
|
|
|
|
|
|
Paper (1)
|
$
98,818
|
|
$ 151,726
|
|
|
Packaging (1)
|
30,610
|
|
41,889
|
|
|
Corporate and Other (1)
(3)
|
(30,097)
|
|
(10,259)
|
|
|
$
99,331
|
|
$ 183,356
|
|
|
|
|
|
|
|
(1) The six
months ended June 30, 2009, included $57.0 million of income
recorded in the
Paper segment, $19.9 million of
income recorded in the Packaging segment, and
$1.6 million of expenses
recorded in the Corporate and Other segment relating to
alternative fuel mixture
credits. These amounts are net of fees and expenses and
before taxes.
(2) See
Summary Notes to Consolidated Financial Statements and Segment
Information
for a reconciliation of our
EBITDA to net income.
(3) The six
months ended June 30, 2010, included $22.2 million of loss on
extinguishment
of debt.
|
|
|
|
|
|
|
Boise Inc.
Consolidated Balance
Sheets
(unaudited, dollars in
thousands)
|
|
|
|
|
|
|
|
June 30, 2010
|
|
December 31, 2009
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Cash and cash
equivalents
|
$
128,062
|
|
$
69,393
|
|
|
Short-term
investments
|
10,606
|
|
10,023
|
|
|
Receivables
|
|
|
|
|
|
Trade, less allowances of
$616 and $839
|
205,268
|
|
185,110
|
|
|
Related
parties
|
2,236
|
|
2,056
|
|
|
Other (1)
|
4,274
|
|
62,410
|
|
|
Inventories
|
255,335
|
|
252,173
|
|
|
Deferred income taxes
|
12,151
|
|
-
|
|
|
Prepaid and other
|
10,829
|
|
4,819
|
|
|
628,761
|
|
585,984
|
|
|
Property
|
|
|
|
|
|
Property and equipment,
net
|
1,186,072
|
|
1,205,679
|
|
|
Fiber farms and
deposits
|
17,825
|
|
17,094
|
|
|
1,203,897
|
|
1,222,773
|
|
|
|
|
|
|
|
Deferred financing
costs
|
32,980
|
|
47,369
|
|
|
Intangible assets,
net
|
30,981
|
|
32,358
|
|
|
Other assets
|
7,546
|
|
7,306
|
|
|
Total assets
|
$
1,904,165
|
|
$
1,895,790
|
|
|
|
|
|
|
|
(1) December
31, 2009, included a $56.6 million receivable for alternative fuel
mixture credits. This amount
was collected during first
quarter 2010.
|
|
|
|
|
|
|
Boise Inc.
Consolidated Balance Sheets
(continued)
(unaudited, dollars and shares
in thousands, except per-share data)
|
|
|
|
|
|
|
|
June 30, 2010
|
|
December 31, 2009
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Short-term borrowings
|
$
3,536
|
|
$
-
|
|
|
Current portion of long-term
debt
|
29,163
|
|
30,711
|
|
|
Income taxes payable
|
63
|
|
240
|
|
|
Accounts payable
|
|
|
|
|
|
Trade
|
193,238
|
|
172,518
|
|
|
Related
parties
|
931
|
|
2,598
|
|
|
Accrued liabilities
|
|
|
|
|
|
Compensation and
benefits
|
53,690
|
|
67,948
|
|
|
Interest
payable
|
11,319
|
|
4,946
|
|
|
Other
|
17,019
|
|
23,735
|
|
|
308,959
|
|
302,696
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
Long-term debt, less current
portion
|
763,081
|
|
785,216
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Deferred income taxes
|
53,065
|
|
32,253
|
|
|
Compensation and
benefits
|
122,446
|
|
123,889
|
|
|
Other long-term
liabilities
|
33,729
|
|
30,801
|
|
|
209,240
|
|
186,943
|
|
|
|
|
|
|
|
Commitments and contingent
liabilities
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred stock, $.0001 par
value per share:
|
-
|
|
-
|
|
|
1,000 shares
authorized; none issued
|
|
|
|
|
|
Common stock, $.0001 par value
per share:
|
8
|
|
8
|
|
|
250,000 shares
authorized;
|
|
|
|
|
|
84,760 shares and
84,419 shares issued and outstanding
|
|
|
|
|
|
Additional paid-in
capital
|
579,211
|
|
578,669
|
|
|
Accumulated other comprehensive
income (loss)
|
(70,770)
|
|
(71,553)
|
|
|
Retained earnings
|
114,436
|
|
113,811
|
|
|
Total stockholders'
equity
|
622,885
|
|
620,935
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
1,904,165
|
|
$
1,895,790
|
|
|
|
|
|
|
Boise Inc.
Consolidated Statements of Cash
Flows
(unaudited, dollars in
thousands)
|
|
|
|
|
|
Six Months Ended June
30
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Cash provided by (used for)
operations
|
|
|
|
|
|
Net income
|
$
625
|
|
$ 49,967
|
|
|
Items in net income not using
(providing) cash
|
|
|
|
|
|
Depreciation, depletion,
and amortization
|
|
|
|
|
|
of deferred
financing costs and other
|
68,864
|
|
71,178
|
|
|
Share-based compensation
expense
|
1,834
|
|
1,744
|
|
|
Notes payable interest
expense
|
-
|
|
5,349
|
|
|
Pension and other
postretirement benefit expense
|
4,705
|
|
4,877
|
|
|
Deferred income
taxes
|
912
|
|
16,593
|
|
|
Change in fair value of
energy derivatives
|
617
|
|
(1,277)
|
|
|
Change in fair value of
interest rate derivatives
|
42
|
|
(495)
|
|
|
(Gain) loss on sales of
assets, net
|
45
|
|
10
|
|
|
Other
|
(364)
|
|
(385)
|
|
|
Loss on extinguishment of
debt
|
22,225
|
|
-
|
|
|
Decrease (increase) in working
capital, net of acquisitions
|
|
|
|
|
|
Receivables
|
37,899
|
|
12,982
|
|
|
Inventories
|
(5,347)
|
|
68,237
|
|
|
Prepaid
expenses
|
1,503
|
|
(2,650)
|
|
|
Accounts payable and
accrued liabilities
|
6,352
|
|
(7,121)
|
|
|
Current and deferred income
taxes
|
344
|
|
8,420
|
|
|
Pension and other postretirement
benefit payments
|
(5,864)
|
|
(7,031)
|
|
|
Other
|
(101)
|
|
331
|
|
|
Cash provided by (used
for) operations
|
134,291
|
|
220,729
|
|
|
Cash provided by (used for)
investment
|
|
|
|
|
|
Acquisitions of businesses and
facilities
|
-
|
|
(543)
|
|
|
Expenditures for property and
equipment
|
(37,481)
|
|
(35,854)
|
|
|
Purchases of short-term
investments
|
(11,825)
|
|
(10,000)
|
|
|
Maturities of short-term
investments
|
11,247
|
|
-
|
|
|
Sales of assets
|
575
|
|
317
|
|
|
Other
|
230
|
|
571
|
|
|
Cash provided by (used
for) investment
|
(37,254)
|
|
(45,509)
|
|
|
Cash provided by (used for)
financing
|
|
|
|
|
|
Issuances of long-term
debt
|
300,000
|
|
10,000
|
|
|
Payments of long-term
debt
|
(323,683)
|
|
(92,631)
|
|
|
Payments of short-term
borrowings
|
(1,752)
|
|
-
|
|
|
Payments of deferred financing
fees
|
(11,613)
|
|
-
|
|
|
Other
|
(1,320)
|
|
-
|
|
|
Cash provided by (used
for) financing
|
(38,368)
|
|
(82,631)
|
|
|
|
|
|
|
|
Increase in cash and cash
equivalents
|
58,669
|
|
92,589
|
|
|
|
|
|
|
|
Balance at beginning of the
period
|
69,393
|
|
22,518
|
|
|
|
|
|
|
|
Balance at end of the period
|
$128,062
|
|
$115,107
|
|
|
|
|
|
Summary Notes to Consolidated Financial Statements and
Segment Information
The Consolidated Statements of Income (Loss), Consolidated
Balance Sheets, Consolidated Statements of Cash Flows, and Segment
Information do not include all Notes to Consolidated Financial
Statements and should be read in conjunction with the Company's
2009 Annual Report on Form 10K and the Company's Quarterly Report
on Form 10Q for the period ended June 30,
2010, as well as other reports the Company files with the
SEC. Net income (loss) for all periods presented involved estimates
and accruals.
Boise Inc. operates its business in three reportable segments:
Paper, Packaging, and Corporate and Other (support services). Boise
Inc. manufactures and sells a range of papers, including
communication-based papers, packaging-demand-driven papers, and
market pulp. Boise Inc. also manufactures and sells corrugated
containers and sheets as well as linerboard and newsprint.
This release contains several financial measures that are not
measures under U.S. generally accepted accounting principles
(GAAP). These measures include EBITDA, EBITDA excluding special
items, net income excluding special items, net total debt, and
other similar measures. Management uses these measures to evaluate
ongoing operations and believes they are useful to investors
because they enable them to perform meaningful comparisons of past
and present operating results. The following charts reconcile these
non-GAAP measures with the most directly comparable GAAP
measures.
EBITDA represents income (loss) before interest (change in fair
value of interest rate derivatives, interest expense, and interest
income), income taxes, and depreciation, amortization, and
depletion. The following table reconciles net income (loss) to
EBITDA for the three months ended June 30,
2010 and 2009, and the three months ended March 31, 2010 (unaudited, dollars in
thousands):
|
Three Months
Ended
|
|
|
June 30
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 13,310
|
|
$ 50,883
|
|
$ (12,685)
|
|
|
Change in fair value of interest
rate derivatives
|
13
|
|
(627)
|
|
29
|
|
|
Interest expense
|
16,165
|
|
21,389
|
|
16,445
|
|
|
Interest income
|
(61)
|
|
(91)
|
|
(37)
|
|
|
Income tax provision
(benefit)
|
8,376
|
|
26,187
|
|
(6,622)
|
|
|
Depreciation, amortization, and
depletion
|
32,267
|
|
32,892
|
|
32,131
|
|
|
EBITDA
|
$ 70,070
|
|
$ 130,633
|
|
$ 29,261
|
|
|
|
|
|
|
|
The following table reconciles net income to EBITDA for the six
months ended June 30, 2010 and 2009
(unaudited, dollars in thousands):
|
Six Months Ended
|
|
|
June 30
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Net income
|
$
625
|
|
$ 49,967
|
|
|
Change in fair value of interest
rate derivatives
|
42
|
|
(495)
|
|
|
Interest expense
|
32,610
|
|
43,543
|
|
|
Interest income
|
(98)
|
|
(145)
|
|
|
Income tax provision
(benefit)
|
1,754
|
|
25,622
|
|
|
Depreciation, amortization, and
depletion
|
64,398
|
|
64,864
|
|
|
EBITDA
|
$ 99,331
|
|
$ 183,356
|
|
|
|
|
|
The following table reconciles segment income (loss) and EBITDA
to EBITDA excluding special items for the three months ended June
30, 2010 and 2009, and the three months ended March 31, 2010 (unaudited, dollars in
thousands):
|
Three Months
Ended
|
|
|
June 30
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
|
|
|
|
|
|
Paper
|
|
|
|
|
|
|
|
Segment income
|
$ 25,708
|
|
$ 84,505
|
|
$ 29,943
|
|
|
Depreciation, amortization, and
depletion
|
21,698
|
|
21,099
|
|
21,469
|
|
|
EBITDA
|
$ 47,406
|
|
$ 105,604
|
|
$ 51,412
|
|
|
St. Helens mill
restructuring
|
(434)
|
|
1,133
|
|
128
|
|
|
Change in fair value of energy
hedges
|
(2,312)
|
|
(2,797)
|
|
2,832
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(56,967)
|
|
-
|
|
|
EBITDA excluding special
items
|
$ 44,660
|
|
$ 46,973
|
|
$ 54,372
|
|
|
|
|
|
|
|
|
|
Packaging
|
|
|
|
|
|
|
|
Segment income (loss)
|
$ 17,105
|
|
$ 20,330
|
|
$ (5,770)
|
|
|
Depreciation, amortization, and
depletion
|
9,579
|
|
10,778
|
|
9,696
|
|
|
EBITDA
|
$ 26,684
|
|
$ 31,108
|
|
$ 3,926
|
|
|
Change in fair value of energy
hedges
|
(401)
|
|
(671)
|
|
498
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(19,947)
|
|
-
|
|
|
EBITDA excluding special
items
|
$ 26,283
|
|
$ 10,490
|
|
$
4,424
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
|
|
|
|
|
|
|
Segment loss
|
$ (4,982)
|
|
$ (7,094)
|
|
$ (4,846)
|
|
|
Depreciation, amortization, and
depletion
|
990
|
|
1,015
|
|
966
|
|
|
Loss on extinguishment of
debt
|
(28)
|
|
-
|
|
(22,197)
|
|
|
EBITDA
|
$ (4,020)
|
|
$ (6,079)
|
|
$ (26,077)
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
1,577
|
|
-
|
|
|
Loss on extinguishment of
debt
|
28
|
|
-
|
|
22,197
|
|
|
EBITDA excluding special
items
|
$ (3,992)
|
|
$ (4,502)
|
|
$ (3,880)
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 70,070
|
|
$ 130,633
|
|
$ 29,261
|
|
|
|
|
|
|
|
|
|
EBITDA excluding special
items
|
$ 66,951
|
|
$ 52,961
|
|
$ 54,916
|
|
|
|
|
|
|
|
The following table reconciles segment income (loss) and EBITDA
to EBITDA excluding special items for the six months ended
June 30, 2010 and 2009 (unaudited,
dollars in thousands):
|
Six Months Ended June
30
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Paper
|
|
|
|
|
|
Segment income
|
$ 55,651
|
|
$ 109,281
|
|
|
Depreciation, amortization, and
depletion
|
43,167
|
|
42,445
|
|
|
EBITDA
|
$ 98,818
|
|
$ 151,726
|
|
|
St. Helens mill
restructuring
|
(306)
|
|
4,781
|
|
|
Change in fair value of energy
hedges
|
521
|
|
(994)
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(56,967)
|
|
|
EBITDA excluding special
items
|
$ 99,033
|
|
$ 98,546
|
|
|
|
|
|
|
|
Packaging
|
|
|
|
|
|
Segment income
|
$ 11,335
|
|
$ 21,455
|
|
|
Depreciation, amortization, and
depletion
|
19,275
|
|
20,434
|
|
|
EBITDA
|
$ 30,610
|
|
$ 41,889
|
|
|
Change in fair value of energy
hedges
|
96
|
|
(283)
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(19,947)
|
|
|
EBITDA excluding special
items
|
$ 30,706
|
|
$ 21,659
|
|
|
|
|
|
|
|
Corporate and
Other
|
|
|
|
|
|
Segment loss
|
$ (9,828)
|
|
$ (12,244)
|
|
|
Depreciation, amortization, and
depletion
|
1,956
|
|
1,985
|
|
|
Loss on extinguishment of
debt
|
(22,225)
|
|
-
|
|
|
EBITDA
|
$ (30,097)
|
|
$ (10,259)
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
1,577
|
|
|
Loss on extinguishment of
debt
|
22,225
|
|
-
|
|
|
EBITDA excluding special
items
|
$ (7,872)
|
|
$ (8,682)
|
|
|
|
|
|
|
|
EBITDA
|
$ 99,331
|
|
$ 183,356
|
|
|
|
|
|
|
|
EBITDA excluding special
items
|
$ 121,867
|
|
$ 111,523
|
|
|
|
|
|
The following tables reconcile net income (loss) to net income
excluding special items and presents net income excluding special
items per diluted share for the three months ended June 30, 2010 and 2009, the three months ended
March 31, 2010, and the six months
ended June 30, 2010 and 2009
(unaudited, dollars and shares in thousands):
|
Three Months
Ended
|
|
|
June 30
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 13,310
|
|
$ 50,883
|
|
$ (12,685)
|
|
|
St. Helens mill
restructuring
|
(434)
|
|
1,133
|
|
128
|
|
|
Change in fair value of energy
hedges
|
(2,713)
|
|
(3,468)
|
|
3,330
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(75,337)
|
|
-
|
|
|
Loss on extinguishment of
debt
|
28
|
|
-
|
|
22,197
|
|
|
Tax impact of special items
(a)
|
1,207
|
|
30,059
|
|
(9,928)
|
|
|
Net income excluding special
items
|
$ 11,398
|
|
$ 3,270
|
|
$ 3,042
|
|
|
Weighted average common shares
outstanding: diluted
|
84,093
|
|
84,254
|
|
84,195
|
|
|
Net income excluding special
items per diluted share
|
$
0.14
|
|
$
0.04
|
|
$
0.04
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Net income
|
$
625
|
|
$ 49,967
|
|
|
St. Helens mill
restructuring
|
(306)
|
|
4,781
|
|
|
Change in fair value of energy
hedges
|
617
|
|
(1,277)
|
|
|
Alternative fuel mixture
credits, net
|
-
|
|
(75,337)
|
|
|
Loss on extinguishment of
debt
|
22,225
|
|
-
|
|
|
Tax impact of special items
(a)
|
(8,721)
|
|
27,799
|
|
|
Net income excluding special
items
|
$ 14,440
|
|
$ 5,933
|
|
|
Weighted average common shares
outstanding: diluted
|
84,143
|
|
81,906
|
|
|
Net income excluding special
items per diluted share
|
$
0.17
|
|
$
0.07
|
|
|
|
|
|
|
|
(a) Special
items are tax effected in the aggregate at an assumed
combined
federal and state statutory rate
of 38.7%.
|
|
|
|
|
|
The following table reconciles total debt to net total debt as
of June 30, 2010 and 2009, and
March 31, 2010 (unaudited, dollars in
thousands):
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
$ 3,536
|
|
$
-
|
|
$
-
|
|
|
Current portion of long-term
debt
|
29,163
|
|
14,890
|
|
16,663
|
|
|
Long-term debt, less current
portion
|
763,081
|
|
939,929
|
|
775,581
|
|
|
Notes payable
|
-
|
|
71,955
|
|
-
|
|
|
Total debt
|
795,780
|
|
1,026,774
|
|
792,244
|
|
|
Less cash and cash equivalents
and short-term investments
|
(138,668)
|
|
(125,108)
|
|
(98,300)
|
|
|
Net total debt
|
$ 657,112
|
|
$ 901,666
|
|
$ 693,944
|
|
|
|
|
|
|
|
SOURCE Boise Inc.
Copyright g. 3 PR Newswire