Boise Inc. Announces Financial Results for Second Quarter 2010
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 |
||||||
(b) For reconciliation of net income (loss) to EBITDA and EBITDA to EBITDA excluding special items, see "Summary Notes |
||||||
(c) For reconciliation of total debt to net total debt, see "Summary Notes to Consolidated Financial Statements and Segment |
||||||
"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. |
||||||
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 |
||||||
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 (2) See Summary Notes to Consolidated Financial Statements and Segment Information for a (3) The three months ended March 31, 2010, included $22.2 million of loss on extinguishment of |
||||||
Boise Inc. |
||||
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 |
||||
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 (2) See Summary Notes to Consolidated Financial Statements and Segment Information (3) The six months ended June 30, 2010, included $22.2 million of loss on extinguishment |
||||
Boise Inc. |
||||
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 |
||||
Boise Inc. |
||||
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. |
||||
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 |
||||
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.
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