Bowater Announces First Quarter Results Higher Newsprint, Coated Paper Prices Lead to Improved Results.GREENVILLE, S.C.--(BUSINESS WIRE)--April 14, 1998--Bowater Incorporated (NYSE NYSE See: New York Stock Exchange :BOW) today reported sharply higher earnings for the first quarter of 1998, compared to the first quarter of 1997. The company reported 1998 first quarter earnings of $24.8 million, or $.59 per diluted share, after a $6.7 million after-tax gain, or $.16 per diluted share, on the sale of timberlands, and after an after-tax charge of $2.7 million, or $.07 per diluted share, relating to the market value adjustment of a currency hedge Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). associated with the company's pending acquisition of Avenor Inc. This compares to a net loss of $.3 million, or $.03 per diluted share reported fwith $348.5 million for the first quarter of 1997, and $401.0 million for the fourth quarter of 1997. ported by strong consumption and favorable inveng the quarter. Bowater Incorporated, headas five paper mills and 3.5 million acres of t Three Months Ended March 31, March 31, Cost of sales Gross profit 6 ( 21,019) (11) Other, net (2) 4,424 275 --------- --------- --------- --------- (1,666) Provision for income taxes 20,094 (617) Minority interests $ 24,787 $ (3 ========= ======== = Average common shar $ 0.59 $ (0.03) ========= ========= Average common and common equivalent shares outstanding 41,034 40,278 onths ended March 31, 1998 includes a deduction of $.6 million 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. In 1997, the calculations included a deduction of $1.0 miis available upon request. BOWATER INCORPORATED AND SUBSIDIARIES (Unaudited, in thousands) Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. March 31, December 31, 1998 1997 Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $ 339,647 $ 228,688 Marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has 90,687 176,834 Accounts receivable, net 194,047 190,594 Inventories 114,118 105,514 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. (2) 34,608 16,745 ---------- ---------- ---------- ---------- Total current assets 773,107 718,375 ---------- ---------- Timber and timberlands 382,964 394,039 Fixed assets, net ========== ========== $2,779,005 $2,745,798 ========== ========== Current liabilities: Current installm34 8,663 ---------- ---------- Long-term debt, net of current installments 756,658 937 345,166 Minority interests in subsidia $ 2,779,005 $ 2,745, Cash flow from operating activities ities: Cash invested in fixed assets and timberlands (37,103) (23,572) --------- --- ------ Cash flow from financing activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. : Cash divide (461) (443) Purchase of 864-282-9571 KEYWORD: SOU URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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