Boise Inc. Reports Financial
Results for Second Quarter 2013
BOISE, Idaho - Boise Inc. (NYSE: BZ) today
reported a net loss of $(2.2) million, or $(0.02) per diluted
share, for second quarter 2013, compared with net income of $13.7
million, or $0.14 per diluted share, for the same period in 2012.
Excluding special items, net income was $10.5 million, or $0.10 per
diluted share, for second quarter 2013. EBITDA, excluding special
items,(1) was $71.2
million for second quarter 2013, compared with $75.1 million for
second quarter 2012.
Special items during the quarter included $15.3
million of pretax costs, of which $9.0 million will be cash
expenditures related primarily to our plan to shut down two
uncoated freesheet paper machines and an off-machine coater at our
mill in International Falls, Minnesota. Additionally, we recorded
$5.5 million of incremental depreciation expense related to
shortening the useful lives of some of our assets, primarily at our
mill in International Falls.
"We grew both sales and margins in our Packaging
business during second quarter. However, prices declined during the
quarter in Paper," said Alexander Toeldte, president and chief
executive officer. "The two, large strategic projects we announced
in May are both proceeding as planned. At our mill in DeRidder,
Louisiana, the conversion of an idled newsprint machine to
lightweight linerboard and medium is on schedule and budget.
Likewise, the closure of the machines in International Falls is
progressing smoothly and on schedule for completion in early fourth
quarter 2013. We continue to believe both these projects will
enhance not only the competitiveness of these mills but also the
competitiveness of the company overall."
Financial
Highlights |
(in millions, except per-share
data) |
|
|
|
|
|
|
|
2Q 2013 |
|
2Q 2012 |
|
1Q 2013 |
Sales |
$621.7 |
|
$637.8 |
|
$607.0 |
Net income (loss) |
($2.2) |
|
$13.7 |
|
($1.2) |
Net income (loss) per diluted share |
($0.02) |
|
$0.14 |
|
($0.01) |
Net income excluding special items (1) |
$10.5 |
|
$13.7 |
|
$2.0 |
Net income per diluted share excluding special items
(1) |
$0.10 |
|
$0.14 |
|
$0.02 |
Weighted average diluted shares outstanding (1) |
100.5 |
|
101.0 |
|
100.2 |
EBITDA (1) |
$55.8 |
|
$75.1 |
|
$56.2 |
EBITDA excluding special items (1) |
$71.2 |
|
$75.1 |
|
$56.2 |
(1) For reconciliations of non-GAAP
measures, see "Summary Notes to Consolidated Financial Statements
and Segment Information."
Packaging Segment
Packaging segment sales for second quarter 2013
were $300.6 million, an increase of $15.8 million, or 6%, compared
with second quarter 2012. The increase related primarily to
benefits from implementation of the linerboard price increase we
announced in fall 2012 and 5% sales volume growth in our network of
box plants, offset partially by a 6% decrease (or $32 per short
ton) in sales prices of newsprint. Prices for our corrugated
containers and sheets increased $4 per msf, or 5%, in second
quarter 2013, compared with second quarter 2012. We expect to begin
benefiting from the $50-per-ton linerboard price increase we
announced in May 2013 during third quarter, with full realization
expected in fourth quarter 2013.
Packaging segment EBITDA, excluding special items,
was $49.1 million for second quarter 2013, an increase of $9.1
million, compared with $40.0 million for the same period last year.
The increase was due to the implementation of our fall 2012
linerboard price increase, sales volume increases, and lower
maintenance outage costs of $5.9 million, offset partially by
approximately $2.0 million of lower revenue in newsprint. During
second quarter 2013, key input costs for fiber, energy, and
chemicals increased in total over second quarter 2012, due
primarily to increased consumption and higher prices for some key
inputs. During second quarter, we began to see some margin
improvements at our operations in California and Texas, which
experienced competitive pressures in recent quarters. We expect the
combination of announced price increases and investments in our
corrugated operations to improve our results for the rest of the
year.
Paper Segment
Paper segment sales for second quarter 2013 were
$334.8 million, a decrease of $28.4 million, or 8%, compared with
second quarter 2012. Excluding sales at our mill in St. Helens,
Oregon, where we ceased paper production in December 2012, second
quarter sales decreased $11.8 million, compared with second quarter
2012. The decrease related to lower uncoated freesheet net sales
prices. Excluding St. Helens, our average net sales price for
uncoated freesheet declined $52, or 5%, to $915 from $967 per short
ton in second quarter 2012, and our uncoated freesheet volumes
increased 1%, compared with second quarter 2012.
In second quarter 2013, Paper segment EBITDA,
excluding special items, was $28.2 million, a decrease of $12.7
million, compared with second quarter 2012. The decrease was due
primarily to lower net sales prices of uncoated freesheet papers
and temporarily higher selling expenses, offset in part by lower
fiber costs. During second quarter 2013, we successfully completed
maintenance outages at our mills in Wallula, Washington, and
International Falls, Minnesota, at a total cost of $8.7 million,
which was slightly lower than the $9.8 million of maintenance
outage costs at the same facilities in second quarter 2012.
Webcast and Conference
Call
Boise Inc. will host a webcast and conference call
on Thursday, August 1, 2013, 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 832-445-1689). The webcast may be accessed through Boise's
Internet site and will be archived for four weeks following the
call. Go to www.BoiseInc.com and click on About Boise Inc. to reach
the link to the webcast under Webcasts & Presentations on the
Investors menu.
A replay of the conference call will be available
in Webcasts & Presentations from August 1, 2013, at 2:00 p.m.
ET through September 2, 2013, at 11:45 p.m. ET. Playback numbers
are 855-859-2056 for U.S. callers and 404-537-3406 for
international callers. The passcode is 18607920.
About Boise Inc.
Headquartered in Boise, Idaho, Boise Inc. (NYSE:
BZ) manufactures a wide variety of packaging and paper products.
Boise's range of packaging products includes linerboard and
corrugating medium, corrugated containers and sheets, and
protective packaging products. Boise's paper products include
imaging papers for the office and home, printing and converting
papers, and papers used in packaging, such as label and release
papers. 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. Statements
regarding announced price increases on our products, asset
configuration changes, and the benefits we expect to derive from
such outcomes and actions are forward looking. Given the risks and
uncertainties involved, there can be no assurance we will be able
to achieve our stated goals or realize any benefits. For example,
changes in the economy and competitive influences may result in our
being unable to implement or realize any additional benefit from
our announced price increases. Economic and competitive influences,
availability of equipment and suppliers, the performance of the
equipment once installed, order patterns, customer demand, and
other factors could cause the outcome of our asset configuration
projects, the related costs, and the timing to differ materially
from our expectations. For further information about the risks and
uncertainties associated with our business, please refer to our
filings with the Securities and Exchange Commission. We undertake
no obligation to update the forward-looking statements in this
release whether as a result of new information, future events, or
otherwise.
Boise Inc.
Segment Highlights
(unaudited, dollars in millions)
|
Three Months Ended |
|
Six Months
Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Packaging |
|
|
|
|
|
|
|
|
|
Sales volumes (thousands of short tons, except
corrugated) |
|
|
|
|
|
|
|
|
|
Linerboard, Total |
151.5 |
|
146.0 |
|
138.9 |
|
290.3 |
|
298.6 |
Linerboard, External sales |
38.6 |
|
38.2 |
|
36.8 |
|
75.3 |
|
91.1 |
Newsprint |
58.4 |
|
58.3 |
|
53.8 |
|
112.3 |
|
113.0 |
Corrugated containers and sheets (mmsf) |
2,613 |
|
2,485 |
|
2,552 |
|
5,165 |
|
4,918 |
Key input costs |
|
|
|
|
|
|
|
|
|
Fiber, including purchased rollstock (a) |
$70.2 |
|
$63.6 |
|
$75.3 |
|
$145.4 |
|
$129.3 |
Energy |
16.9 |
|
13.4 |
|
16.3 |
|
33.1 |
|
28.4 |
Chemicals |
12.2 |
|
10.4 |
|
10.9 |
|
23.1 |
|
20.6 |
Outage costs |
- |
|
5.9 |
|
22.4 |
|
22.4 |
|
7.7 |
EBITDA (b) |
48.1 |
|
40.0 |
|
17.2 |
|
65.3 |
|
77.9 |
EBITDA excluding special items (b) |
49.1 |
|
40.0 |
|
17.2 |
|
66.3 |
|
77.9 |
Assets |
986.1 |
|
943.5 |
|
959.7 |
|
|
|
|
Paper |
|
|
|
|
|
|
|
|
|
Sales volumes (thousands of short tons) |
|
|
|
|
|
|
|
|
|
Uncoated freesheet (c) |
301.4 |
|
312.5 |
|
298.8 |
|
600.2 |
|
637.6 |
Uncoated freesheet, excluding St. Helens (d) |
300.5 |
|
297.6 |
|
295.6 |
|
596.0 |
|
607.1 |
Corrugating medium |
34.4 |
|
34.2 |
|
33.2 |
|
67.6 |
|
66.7 |
Market pulp, External sales |
6.3 |
|
10.3 |
|
1.3 |
|
7.6 |
|
18.8 |
Key input costs |
|
|
|
|
|
|
|
|
|
Fiber (e) |
$62.5 |
|
$78.2 |
|
$69.1 |
|
$131.6 |
|
$163.1 |
Energy |
33.3 |
|
32.2 |
|
34.4 |
|
67.7 |
|
67.2 |
Chemicals |
51.8 |
|
53.1 |
|
50.8 |
|
102.6 |
|
106.4 |
Outage costs |
8.7 |
|
9.8 |
|
0.4 |
|
9.1 |
|
9.8 |
EBITDA (b) |
15.9 |
|
40.9 |
|
45.6 |
|
61.5 |
|
96 |
EBITDA excluding special items (b) |
28.2 |
|
40.9 |
|
45.6 |
|
73.8 |
|
96 |
Assets |
1,110.6 |
|
1,198.3 |
|
1,142.6 |
|
|
|
|
|
2Q 2013 vs. 2Q 2012 |
|
2Q 2013 vs. 1Q 2013 |
|
YTD 2013 vs. YTD 2012 |
Packaging |
|
|
|
|
|
Change in average net sales prices (dollars per short ton,
except corrugated) (f) |
|
|
|
|
|
Linerboard, Total |
$86 |
|
$33 |
|
$71 |
Linerboard, External sales |
75 |
|
15 |
|
72 |
Newsprint |
(32) |
|
(13) |
|
(25) |
Corrugated containers and sheets ($/msf) |
4 |
|
2 |
|
3 |
Paper |
|
|
|
|
|
Change in average net sales prices (dollars per short ton)
(f) |
|
|
|
|
|
Uncoated freesheet (c) |
($58) |
|
($15) |
|
($52) |
Uncoated freesheet, excluding St. Helens (d) |
(52) |
|
(14) |
|
(48) |
Corrugating medium |
105 |
|
25 |
|
92 |
Market pulp, External sales |
(9) |
|
9 |
|
(8) |
(a) Includes purchases of corrugating medium
from our Paper segment, which are eliminated in
consolidation.
(b) For reconciliations of non-GAAP measures, see "Summary
Notes to Consolidated Financial Statements and Segment
Information."
(c) Includes cut-size office papers, printing and converting
papers, and label and release papers.
(d) We ceased paper production at our mill in St. Helens,
Oregon, in December 2012.
(e) Fiber costs at our St. Helens, Oregon, mill, were $6.7
million and $13.5 million for the three and six months ended June
30, 2012, respectively.
(f) Average net selling prices for our principal products
represent sales less freight costs, discounts, and allowances.
Boise Inc.
Consolidated Statements of
Operations
(unaudited, dollars and shares in thousands, except per-share
data)
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Sales |
|
|
|
|
|
|
|
|
|
Trade |
$604,821 |
|
$618,585 |
|
$591,321 |
|
$1,196,142 |
|
$1,252,113 |
Related party |
16,843 |
|
19,255 |
|
15,697 |
|
32,540 |
|
30,573 |
|
621,664 |
|
637,840 |
|
607,018 |
|
1,228,682 |
|
1,282,686 |
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
Materials, labor, and other operating expenses (excluding
depreciation) (1) |
495,689 |
|
507,343 |
|
496,269 |
|
991,958 |
|
1,009,642 |
Fiber costs from related party |
5,319 |
|
4,466 |
|
6,146 |
|
11,465 |
|
9,412 |
Depreciation, amortization, and depletion (1) |
43,891 |
|
37,303 |
|
43,428 |
|
87,319 |
|
74,859 |
Selling and distribution expenses |
33,764 |
|
30,568 |
|
28,849 |
|
62,613 |
|
61,210 |
General and administrative expenses |
19,693 |
|
20,035 |
|
18,923 |
|
38,616 |
|
40,043 |
Restructuring costs (1) |
9,011 |
|
- |
|
- |
|
9,474 |
|
- |
Other (income) expense, net (2) |
1,930 |
|
381 |
|
331 |
|
1,798 |
|
81 |
|
609,297 |
|
600,096 |
|
593,946 |
|
1,203,243 |
|
1,195,247 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
12,367 |
|
37,744 |
|
13,072 |
|
25,439 |
|
87,439 |
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain (loss) |
(415) |
|
102 |
|
(341) |
|
(756) |
|
259 |
Interest expense |
(15,456) |
|
(15,433) |
|
(15,419) |
|
(30,875) |
|
(30,798) |
Interest income |
7 |
|
54 |
|
27 |
|
34 |
|
98 |
|
(15,864) |
|
(15,277) |
|
(15,733) |
|
(31,597) |
|
(30,441) |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
(3,497) |
|
22,467 |
|
(2,661) |
|
(6,158) |
|
56,998 |
Income tax (provision) benefit |
1,289 |
|
(8,805) |
|
1,436 |
|
2,725 |
|
(21,998) |
Net income (loss) |
($2,208) |
|
$13,662 |
|
($1,225) |
|
($3,433) |
|
$35,000 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
100,531 |
|
100,116 |
|
100,242 |
|
100,387 |
|
99,584 |
Diluted |
100,531 |
|
101,008 |
|
100,242 |
|
100,387 |
|
101,182 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
($0.02) |
|
$0.14 |
|
($0.01) |
|
($0.03) |
|
$0.35 |
Diluted |
($0.02) |
|
$0.14 |
|
($0.01) |
|
($0.03) |
|
$0.35 |
For Footnotes, see Summary Notes to Consolidated
Financial Statements and Segment Information.
Boise Inc.
Segment Information
(unaudited, dollars in thousands)
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Segment sales |
|
|
|
|
|
|
|
|
|
Packaging |
$300,564 |
|
$284,772 |
|
$287,047 |
|
$587,611 |
|
$557,065 |
Paper (3) |
334,835 |
|
363,258 |
|
332,742 |
|
667,577 |
|
745,690 |
Intersegment eliminations and other |
(13,735) |
|
(10,190) |
|
(12,771) |
|
(26,506) |
|
(20,069) |
|
$621,664 |
|
$637,840 |
|
$607,018 |
|
$1,228,682 |
|
$1,282,686 |
|
|
|
|
|
|
|
|
|
|
Segment income (loss) |
|
|
|
|
|
|
|
|
|
Packaging (1) |
$31,284 |
|
$24,846 |
|
$893 |
|
$32,177 |
|
$47,281 |
Paper (1) |
(9,942) |
|
19,575 |
|
19,675 |
|
9,733 |
|
53,524 |
Corporate and Other (2) |
(9,390) |
|
(6,575) |
|
(7,837) |
|
(17,227) |
|
(13,107) |
|
11,952 |
|
37,846 |
|
12,731 |
|
24,683 |
|
87,698 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
(15,456) |
|
(15,433) |
|
(15,419) |
|
(30,875) |
|
(30,798) |
Interest income |
7 |
|
54 |
|
27 |
|
34 |
|
98 |
Income (loss) before income taxes |
($3,497) |
|
$22,467 |
|
($2,661) |
|
($6,158) |
|
$56,998 |
|
|
|
|
|
|
|
|
|
|
EBITDA (4) |
|
|
|
|
|
|
|
|
|
Packaging (1) |
$48,072 |
|
$39,995 |
|
$17,224 |
|
$65,296 |
|
$77,915 |
Paper (1) |
15,914 |
|
40,880 |
|
45,626 |
|
61,540 |
|
96,044 |
Corporate and Other (2) |
(8,143) |
|
(5,726) |
|
(6,691) |
|
(14,834) |
|
(11,402) |
|
$55,843 |
|
$75,149 |
|
$56,159 |
|
$112,002 |
|
$162,557 |
|
|
|
|
|
|
|
|
|
|
EBITDA excluding special items
(4) |
|
|
|
|
|
|
|
|
|
Packaging |
$49,072 |
|
$39,995 |
|
$17,224 |
|
$66,296 |
|
$77,915 |
Paper |
28,184 |
|
40,880 |
|
45,626 |
|
73,810 |
|
96,044 |
Corporate and Other |
(6,097) |
|
(5,726) |
|
(6,691) |
|
(12,788) |
|
(11,402) |
|
$71,159 |
|
$75,149 |
|
$56,159 |
|
$127,318 |
|
$162,557 |
For Footnotes, see Summary Notes to Consolidated
Financial Statements and Segment Information.
Boise Inc.
Consolidated Balance Sheets
(unaudited, dollars in thousands)
|
June 30, 2013 |
|
December 31, 2012 |
ASSETS |
|
|
|
|
|
|
|
Current |
|
|
|
Cash and cash equivalents |
$61,086 |
|
$49,707 |
Receivables |
|
|
|
Trade, less allowances of $1,349 and $1,382 |
254,348 |
|
240,459 |
Other |
9,861 |
|
8,267 |
Inventories |
288,707 |
|
294,484 |
Deferred income taxes |
10,068 |
|
17,955 |
Prepaid and other |
14,139 |
|
8,828 |
|
638,209 |
|
619,700 |
|
|
|
|
Property |
|
|
|
Property and equipment, net |
1,212,663 |
|
1,223,001 |
Fiber farms |
25,113 |
|
24,311 |
|
1,237,776 |
|
1,247,312 |
|
|
|
|
Deferred financing costs |
24,380 |
|
26,677 |
Goodwill |
160,132 |
|
160,130 |
Intangible assets, net |
142,018 |
|
147,564 |
Other assets |
6,629 |
|
7,029 |
Total assets |
$2,209,144 |
|
$2,208,412 |
For Footnotes, see Summary Notes to Consolidated
Financial Statements and Segment Information.
Boise Inc.
Consolidated Balance Sheets
(continued)
(unaudited, dollars and shares in thousands, except per-share
data)
|
June 30, 2013 |
|
December 31, 2012 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Current |
|
|
|
Current portion of long-term debt |
$15,000 |
|
$10,000 |
Accounts payable |
203,202 |
|
185,078 |
Accrued liabilities |
|
|
|
Compensation and benefits |
65,386 |
|
70,950 |
Interest payable |
10,529 |
|
10,516 |
Other |
25,158 |
|
20,528 |
|
319,275 |
|
297,072 |
|
|
|
|
Debt |
|
|
|
Long-term debt, less current portion |
760,000 |
|
770,000 |
|
|
|
|
Other |
|
|
|
Deferred income taxes |
189,918 |
|
198,370 |
Compensation and benefits |
116,153 |
|
121,682 |
Other long-term liabilities |
73,990 |
|
73,102 |
|
380,061 |
|
393,154 |
|
|
|
|
Commitments and contingent
liabilities |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
Preferred stock, $0.0001 par value per share: 1,000 shares
authorized; none issued |
- |
|
- |
Common stock, $0.0001 par value per share: 250,000 shares
authorized; 100,884 shares and 100,503 shares issued and
outstanding |
12 |
|
12 |
Treasury stock, 21,151 shares held |
(121,423) |
|
(121,423) |
Additional paid-in capital |
871,065 |
|
868,840 |
Accumulated other comprehensive income (loss) |
(98,520) |
|
(101,304) |
Retained earnings |
98,674 |
|
102,061 |
Total stockholders' equity |
749,808 |
|
748,186 |
|
|
|
|
Total liabilities and stockholders'
equity |
$2,209,144 |
|
$2,208,412 |
For Footnotes, see Summary Notes to Consolidated
Financial Statements and Segment Information.
Boise Inc.
Consolidated Statements of Cash
Flows
(unaudited, dollars in thousands)
|
Six Months
Ended |
|
June
30 |
|
2013 |
|
2012 |
Cash provided by (used for)
operations |
|
|
|
Net income (loss) |
($3,433) |
|
$35,000 |
Items in net income (loss) not using (providing) cash |
|
|
|
Depreciation, depletion, and amortization of deferred
financing costs and other |
89,793 |
|
77,190 |
Share-based compensation expense |
3,076 |
|
2,729 |
Pension expense |
3,020 |
|
5,474 |
Deferred income taxes |
(2,624) |
|
12,610 |
Restructuring costs |
9,992 |
|
- |
Other |
1,400 |
|
(43) |
Decrease (increase) in working capital |
|
|
|
Receivables |
(15,731) |
|
(12,050) |
Inventories |
2,566 |
|
(20,224) |
Prepaid expenses |
(2,127) |
|
(4,869) |
Accounts payable and accrued liabilities |
1,040 |
|
(14,061) |
Current and deferred income taxes |
(689) |
|
7,452 |
Pension payments |
(5,091) |
|
(18,191) |
Other |
404 |
|
2,110 |
Cash provided by operations |
81,596 |
|
73,127 |
Cash provided by (used for)
investment |
|
|
|
Expenditures for property and equipment |
(64,595) |
|
(52,457) |
Other |
690 |
|
586 |
Cash used for investment |
(63,905) |
|
(51,871) |
Cash provided by (used for)
financing |
|
|
|
Payments of long-term debt |
(5,000) |
|
(5,000) |
Payments of special dividend |
- |
|
(47,483) |
Other |
(1,312) |
|
(6,267) |
Cash used for financing |
(6,312) |
|
(58,750) |
Increase (decrease) in cash and cash
equivalents |
11,379 |
|
(37,494) |
Balance at beginning of the
period |
49,707 |
|
96,996 |
Balance at end of the period |
$61,086 |
|
$59,502 |
For Footnotes, see Summary Notes to Consolidated
Financial Statements and Segment Information.
Summary Notes to Consolidated
Financial Statements and Segment Information
The Consolidated Statements of Operations,
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 2012 Annual Report on Form 10-K and the Company's
Quarterly Report on Form 10-Q for the period ended June 30, 2013,
as well as other reports the Company files with the SEC. Net income
(loss) for all periods presented involved estimates and
accruals.
1. During second quarter 2013, we recorded
$13.3 million of pretax restructuring costs, of which $12.3 million
was recorded in our Paper segment and related primarily to our plan
to shut down two paper machines and an off-machine coater at our
mill in International Falls, Minnesota, in early fourth quarter
2013. We recorded $1.0 million of costs in our Packaging segment
related to restructuring activities in connection with our recently
announced project to convert a machine at our DeRidder, Louisiana,
mill to produce lightweight linerboard and corrugating medium. The
$13.3 million of costs included approximately $6.3 million of
noncash charges related primarily to inventory and asset
write-downs and approximately $7.0 million of cash costs related to
employee severance. We expect to pay most of these cash costs in
late 2013 and early 2014. In addition to the amounts recorded in
"Restructuring costs" on our Consolidated Statements of Operations,
we recorded $4.0 million of other restructuring costs that related
primarily to inventory write-downs in "Materials, labor and other
operating expenses (excluding depreciation)", during the three and
six months ended June 30, 2013.
During the three and six months ended June 30,
2013, we recognized $5.5 million and $10.8 million, respectively,
of incremental depreciation expense related to shortening the
useful lives of some of our assets, primarily at International
Falls, Minnesota. We recognized $3.8 million and $7.6 million of
incremental depreciation expense in our Paper segment during the
three and six months ended June 30, 2013, respectively, and $1.7
million and $3.2 million of incremental depreciation expense,
respectively, in our Packaging segment.
2. Transaction-related costs for the three
and six months ended June 30, 2013, were $2.0 million, and include
expenses associated with transactions, whether consummated or not.
We explore strategic transactions to the extent we believe they may
improve our competitive position or enhance shareholder value.
These costs were recorded in "Other (income) expense, net" on our
Consolidated Statements of Operations in our Corporate and Other
segment.
3. The decrease in Paper segment sales
relates partially to ceasing paper production at our mill in St.
Helens, Oregon, in December 2012. During the three and six months
ended June 30, 2012, St. Helens sales were $17.5 million and $35.6
million, respectively.
4. 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, free
cash flow, 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 tables that
follow reconcile these non-GAAP measures with the most directly
comparable GAAP measures.
EBITDA represents income (loss) before interest
(interest expense and interest income), income taxes, and
depreciation, amortization, and depletion. The following table
reconciles net income (loss) to EBITDA and EBITDA excluding special
items (unaudited, dollars in thousands):
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Net income (loss) |
($2,208) |
|
$13,662 |
|
($1,225) |
|
($3,433) |
|
$35,000 |
Interest expense |
15,456 |
|
15,433 |
|
15,419 |
|
30,875 |
|
30,798 |
Interest income |
(7) |
|
(54) |
|
(27) |
|
(34) |
|
(98) |
Income tax provision (benefit) |
(1,289) |
|
8,805 |
|
(1,436) |
|
(2,725) |
|
21,998 |
Depreciation, amortization, and depletion |
43,891 |
|
37,303 |
|
43,428 |
|
87,319 |
|
74,859 |
EBITDA |
$55,843 |
|
$75,149 |
|
$56,159 |
|
$112,002 |
|
$162,557 |
|
|
|
|
|
|
|
|
|
|
Restructuring costs (1) |
$13,270 |
|
$- |
|
$- |
|
$13,270 |
|
$- |
Transaction-related costs (2) |
2,046 |
|
- |
|
- |
|
2,046 |
|
- |
EBITDA excluding special items |
$71,159 |
|
$75,149 |
|
$56,159 |
|
$127,318 |
|
$162,557 |
The following table reconciles segment income
(loss) and EBITDA to EBITDA excluding special items (unaudited,
dollars in thousands):
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Packaging |
|
|
|
|
|
|
|
|
|
Segment income |
$31,284 |
|
$24,846 |
|
$893 |
|
$32,177 |
|
$47,281 |
Depreciation, amortization, and depletion |
16,788 |
|
15,149 |
|
16,331 |
|
33,119 |
|
30,634 |
EBITDA |
$48,072 |
|
$39,995 |
|
$17,224 |
|
$65,296 |
|
$77,915 |
Restructuring costs |
1,000 |
|
- |
|
- |
|
1,000 |
|
- |
EBITDA excluding special items |
$49,072 |
|
$39,995 |
|
$17,224 |
|
$66,296 |
|
$77,915 |
|
|
|
|
|
|
|
|
|
|
Paper |
|
|
|
|
|
|
|
|
|
Segment income (loss) |
(9,942) |
|
19,575 |
|
19,675 |
|
9,733 |
|
53,524 |
Depreciation, amortization, and depletion |
25,856 |
|
21,305 |
|
25,951 |
|
51,807 |
|
42,520 |
EBITDA |
$15,914 |
|
$40,880 |
|
$45,626 |
|
$61,540 |
|
$96,044 |
Restructuring costs |
12,270 |
|
- |
|
- |
|
12,270 |
|
- |
EBITDA excluding special items |
$28,184 |
|
$40,880 |
|
$45,626 |
|
$73,810 |
|
$96,044 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
Segment loss |
(9,390) |
|
(6,575) |
|
(7,837) |
|
(17,227) |
|
(13,107) |
Depreciation, amortization, and depletion |
1,247 |
|
849 |
|
1,146 |
|
2,393 |
|
1,705 |
EBITDA |
($8,143) |
|
($5,726) |
|
($6,691) |
|
($14,834) |
|
($11,402) |
Transaction-related costs |
2,046 |
|
|
|
|
|
2,046 |
|
|
EBITDA excluding special items |
($6,097) |
|
($5,726) |
|
($6,691) |
|
($12,788) |
|
($11,402) |
|
|
|
|
|
|
|
|
|
|
EBITDA |
$55,843 |
|
$75,149 |
|
$56,159 |
|
$112,002 |
|
$162,557 |
|
|
|
|
|
|
|
|
|
|
Restructuring costs |
13,270 |
|
$- |
|
$- |
|
13,270 |
|
$- |
Transaction-related costs |
2,046 |
|
- |
|
- |
|
2,046 |
|
- |
EBITDA excluding special items |
$71,159 |
|
$75,149 |
|
$56,159 |
|
$127,318 |
|
$162,557 |
The following table reconciles net income (loss)
to net income excluding special items and presents net income per
diluted share excluding special items (unaudited, dollars and
shares in thousands, except per-share data):
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
March 31, |
|
June 30 |
|
2013 |
|
2012 |
|
2013 |
|
2013 |
|
2012 |
Net income (loss) |
($2,208) |
|
$13,662 |
|
($1,225) |
|
($3,433) |
|
$35,000 |
Restructuring costs |
13,270 |
|
- |
|
- |
|
13,270 |
|
- |
Incremental depreciation due to changes in estimated
useful lives |
5,463 |
|
- |
|
5,316 |
|
10,779 |
|
- |
Transaction-related costs |
2,046 |
|
- |
|
- |
|
2,046 |
|
- |
Tax provision for special items (a) |
(8,041) |
|
- |
|
(2,057) |
|
(10,099) |
|
- |
Net income excluding special items |
$10,530 |
|
$13,662 |
|
$2,034 |
|
$12,563 |
|
$35,000 |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding: (b) |
100,872 |
|
101,008 |
|
100,890 |
|
100,852 |
|
101,182 |
Net income per diluted share excluding special items |
$0.10 |
|
$0.14 |
|
$0.02 |
|
$0.12 |
|
$0.35 |
(a) Taxes are applied to special items in
the aggregate at the combined federal and state statutory rate in
effect for the period.
(b) For the three and six months ended June 30, 2013, and the
three months ended March 31, 2013, basic and diluted weighted
average common shares outstanding reported in our Consolidated
Statements of Operations were 100.5 million, 100.4 million, and
100.2 million, respectively. Adjusting for the special items above,
diluted weighted average common shares outstanding increased 0.3
million, 0.5 million, and 0.6 million shares, respectively, to
reflect the incremental effect of dilutive common stock
equivalents.
The following table reconciles cash provided by
operations to free cash flow (unaudited, dollars in thousands):
|
Six Months
Ended June 30 |
|
2013 |
|
2012 |
Cash provided by operations |
$81,596 |
|
$73,127 |
Expenditures for property and equipment |
(64,595) |
|
(52,457) |
Free cash flow |
$17,001 |
|
$20,670 |
SOURCE: Boise Inc.
Greg Jones
Director, Investor Relations
208-384-7141
Virginia Aulin
Vice President, Human Resources and Corporate Affairs
208-384-7837
http://www.boiseinc.com/
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Boise Paper Holdings LLC via Thomson Reuters
ONE
HUG#1720544
Bairnco (NYSE:BZ)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Bairnco (NYSE:BZ)
Historical Stock Chart
Von Jul 2023 bis Jul 2024