ADD to BW1695, BOWATER.--(BUSINESS WIRE)-- ADD to BW1695 (BOWATER Bowater NYSE: BOW is an American pulp and paper company based in Greenville, South Carolina. Bowater has 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills. It has approximately 10,000 employees. ) after last graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. xxx All amounts are stated in U.S. Dollars. -0-
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in millions except per share amounts)
Three Months Ended
-------------------------------
September 30, September 30,
1998 1997
--------------- ---------------
Net sales $ 576.9 $ 378.6
Cost of sales 411.0 277.0
Depreciation, amortization,
and cost of timber harvested 65.8 42.4
Impairment of asset (1) 119.6 --
------- -------
Gross profit/(loss) (19.5) 59.2
Selling and administrative
expense 19.5 18.8
------- -------
Operating income/(loss) (39.0) 40.4
Other expense (income):
Interest income (2.2) (5.5)
Interest expense, net 27.9 17.0
Sale of timberlands (2) -- --
Other, net (3) 50.1 0.4
------- -------
75.8 11.9
------- -------
Income/(loss) before income taxes
and minority interests (114.8) 28.5
Provision for income taxes (4) (28.7) 10.5
Minority interests 2.0 1.2
------- -------
Net income/(loss) $ (88.1) $ 16.8
======= =======
Basic earnings/(loss) per common share:
(5) $ (1.69) $ 0.40
======= =======
Average common shares outstanding 52.6 41.0
======= =======
Diluted earnings/(loss) per common share:
(5) $ (1.69) $ 0.40
======= =======
Average common and common
equivalent shares outstanding 52.6 41.0
======= =======
Nine Months Ended
-------------------------------
September 30, September 30,
1998 1997
-------------- -------------
Net sales $1,355.8 $1,083.5
Cost of sales 965.8 829.7
Depreciation, amortization,
and cost of timber harvested 154.1 126.2
Impairment of asset (1) 119.6 --
--------- ---------
Gross profit/(loss) 116.3 127.6
Selling and administrative
expense 50.5 53.8
--------- ---------
Operating income/(loss) 65.8 73.8
Other expense (income):
Interest income (14.9) (15.7)
Interest expense, net 61.1 50.6
Sale of timberlands (2) (21.1) --
Other, net (3) 71.3 --
--------- ---------
96.4 34.9
--------- ---------
Income/(loss) before income taxes
and minority interests (30.6) 38.9
Provision for income taxes (4) 3.3 14.4
Minority interests 10.6 0.9
--------- ---------
Net income/(loss) $(44.5) $23.6
========= =========
Basic earnings/(loss) per common share: $(1.02) $0.52
(5) ========= =========
Average common shares outstanding 45.3 40.7
========= =========
Diluted earnings/(loss) per common share: $(1.02) $0.52
(5) ========= =========
Average common and common
equivalent shares outstanding 45.3 40.7
========= =========
BOWATER INCORPORATED AND SUBSIDIARIES
(Unaudited, in millions)
Consolidated Balance Sheet September 30, December 31,
1998 1997
---------------- ----------------
Current assets:
Cash and cash equivalents $577.2 $228.7
Marketable securities 0.4 176.8
Accounts receivable, net 395.5 190.6
Inventories 213.4 105.5
Other current assets 28.5 16.8
------------ -------------
Total current assets 1,215.0 718.4
------------ -------------
Timber and timberlands 474.8 394.0
Fixed assets, net 2,862.8 1,554.5
Goodwill 863.0 -
Other assets 161.0 78.9
------------ -------------
$5,576.6 $2,745.8
============ =============
Current liabilities:
Current installments of
long-term debt $547.3 $1.8
Accounts payable and
accrued liabilities 419.2 168.3
Income taxes payable 17.6 15.9
Dividends payable 11.9 8.7
------------ -------------
Total current liabilities 996.0 194.7
------------ -------------
Long-term debt, net of current
installments 1,698.3 757.1
Other long-term liabilities 404.3 169.5
Deferred income taxes 473.6 345.1
Minority interests in subsidiaries 135.9 125.2
Shareholders' equity 1,868.5 1,154.2
------------ -------------
$5,576.6 $2,745.8
============ =============
Nine Months Ended
------------------------------------
Consolidated Cash Flow September 30, September 30,
1998 1997
---------------- ----------------
Cash flow from operating
activities $166.1 $126.7
------------- -------------
Cash flow from investing
activities:
Acquisition of Avenor Inc. (675.0) -
Acquisition of Halla
newsprint mill (201.0) -
Cash invested in fixed assets
and timberlands (147.1) (70.6)
Disposition of fixed assets
and timberlands 32.6 2.8
Disposition of Dryden pulp
& paper mill (6) 523.0 -
Cash invested in option
contracts (22.7) -
Cash from maturities of marketable
securities, net 176.4 68.8
------------- -------------
(313.8) 1.0
------------- -------------
Cash flow from financing
activities:
Proceeds from short-term
borrowings 621.2 -
Payments of short-term
borrowings (85.0) -
Cash dividends, including minority
interests (45.7) (48.6)
Payments of long-term borrowings (1.4) (1.3)
Purchase of common stock - (57.2)
Redemption of LIBOR preferred stock - (25.0)
Stock options exercised 5.8 23.4
Other 1.3 1.3
------------- -------------
496.2 (107.4)
------------- -------------
Increase in cash and cash
equivalents $348.5 $20.3
============ =============
BOWATER INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge ---------------------------------------------------------------------- (1) In the third quarter of 1998, the Company reduced the book value of assets at its Millinocket, Maine Millinocket is a town with a mill in Penobscot County, Maine, USA. The population was 5,203 at the 2000 census. It is home to a hospital. History It began with the selection of a site for the Great Northern Paper Company in 1899. Charles W. , paper mill in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 121, "Accounting for the Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Long-Lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. Assets", resulting in a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $120 million or $1.39 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. (2) During the first nine months of 1998, the Company sold approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 26,000 acres of non-strategic timberlands resulting in a pre-tax gain of $21 million. (3) During the third quarter of 1998, the Company recorded a reserve of $15 million ($.29 per diluted share) against a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. note receivable. During the third quarter of 1998, the Company recorded pre-tax foreign currency exchange losses of $35 million or $.49 per diluted share. During the first nine months of 1998, the Company adjusted the cost of its purchased options on the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents and closed out Korean won
pre-tax charge of $20 million. (4) The provision for income taxes has been increased to reflect the non-deductibility of certain book charges and allowances for tax benefits not currently expected to be realized. (5) The calculations of basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the three and nine months ended September September: see month. 30, 1998, include deductions of $.6 million and $1.7 million, respectively, for Series C preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends. Due to the net losses incurred for both periods, all common stock equivalents were excluded to prevent antidilution. For the three and nine months ended September 30,1997, the calculations included deductions of $.6 million and $2.3 million, respectively, for any dividend requirements of the Company's LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). and Series C preferred stock and the amortization of the difference between the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the LIBOR preferred stock and its mandatory Peremptory; obligatory; required; that which must be subscribed to or obeyed. Mandatory statutes are those that require, as opposed to permit, a particular course of action. redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. value. (6) In the third quarter of 1998, the Company sold its Dryden white paper mill for approximately $523 million, which was recently acquired upon the acquisition of Avenor Av´e`nor n. 1. See Avener. Inc. The gain on the sale of approximately $100 million reduced the amount of goodwill which was recorded as part of the Avenor transaction. A schedule of historical financial and operating statistics is available upon request. |
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