Bowater announces fourth quarter and 1996 results.GREENVILLE Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , S.C.--(BUSINESS WIRE)--Jan. 16, 1997--Bowater Incorporated (NYSE NYSE See: New York Stock Exchange : BOW Bow, river, Canada Bow (bō), river, 315 mi (507 km) long, rising in the Rocky Mts., S Alta., Canada, and flowing SE through Banff National Park. ) today reported net income for the 1996 fourth quarter of $18.2 million, or $.41 per fully 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, on sales of $372.2 million. The results include an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $17.0 million, or $.41 per share, on the sale of the company's former Star Forms subsidiary; an after-tax gain on the sale of timberlands of $2.0 million, or $.05 per share; and an extraordinary charge of $.4 million, or $.01 per share, for additional debt retirements. This compares to net income of $95.3 million, or $1.88 per fully diluted share, after a $.22 per share charge for the 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. of 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. , on sales of $543.9 million for the same period last year. Net income for the full year of 1996 was $200.2 million, or $4.55 per fully diluted share, on sales of $1,718.3 million. This compares with net income of $246.9 million, or $5.22 per fully diluted share, on sales of $2,001.1 million in 1995. Timberland sales resulted in after-tax gains of $40.4 million and $1.4 million for the full years of 1996 and 1995, respectively. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter was adversely affected by lower paper prices compared with the third quarter of 1996 and the fourth quarter of last year. In addition, the company incurred higher operating costs operating costs npl → gastos mpl operacionales during the fourth quarter due to several non-recurring items. "Despite the sharp decline in prices and higher costs in the fourth quarter, I am pleased that our 1996 operating income was one of the best in the company's history," said Arnold M. Nemirow, Bowater's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The company is in strong financial shape, and well positioned to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. opportunities as market conditions improve," said Nemirow. 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. Incorporated, headquartered in Greenville, SC, is the largest producer of newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been in the U.S., and also makes coated and uncoated groundwood papers, bleached kraft pulp and lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to products. It has five paper mills and 3.6 million acres of timberlands in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Bowater Incorporated common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , U.S. regional exchanges, the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and the Swiss Stock Exchanges.
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended
Dec. 31, Dec. 31,
1996 1995
Net sales $372,247 $543,920
Cost of sales 295,885 301,957
Depreciation, amortization,
and cost of timber harvested 43,320 43,583
Gross profit 33,042 198,380
Selling and administrative expense (1) 24,807 18,698
Operating income 8,235 179,682
Other expense (income):
Interest income (6,194) (3,353)
Interest expense, net 17,019 17,895
Sale of timberlands (3,212) (278)
Sale of Star Forms (3) (17,019) 0
Other, net (746) 1,461
(10,152) 15,725
Income before income taxes
and minority interests 18,387 163,957
Provision for income taxes (5) 516 60,740
Minority interests (690) 7,959
Income before
extraordinary charge 18,561 95,258
Extraordinary charge (6) (391) 0
Net income $18,170 $95,258
Earnings per common share - primary:
Income before
extraordinary charge (7) $0.42 $1.92
Extraordinary charge (0.01) 0.00
Net income (7) $0.41 $1.92
Average common and common
equivalent shares outstanding 41,618 43,680
Earnings per common share - fully diluted:
Income before
extraordinary charge (7) $0.42 $1.88
Extraordinary charge (0.01) 0.00
Net income (7) $0.41 $1.88
Average common and common
equivalent shares outstanding 41,671 (8) 44,561
Twelve Months Ended
Dec. 31, Dec. 31,
1996 1995
Net sales $1,718,269 $2,001,141
Cost of sales 1,149,593 1,183,977(2)
Depreciation, amortization,
and cost of timber harvested 174,404 174,176
Gross profit 394,272 642,988
Selling and administrative expense (1) 93,090 93,737(2)
Operating income 301,182 549,251
Other expense (income):
Interest income (21,074) (8,923)
Interest expense, net 71,347 80,513
Sale of timberlands (81,065) (2,152)
Sale of Star Forms (3) (17,019) 30,000
Other, net (4,195) (14,757)(4)
(52,006) 84,681
Income before income taxes
and minority interests 353,188 464,570
Provision for income taxes (5) 124,393 183,090
Minority interests 24,719 23,235
Income before
extraordinary charge 204,076 258,245
Extraordinary charge (6) (3,922) (11,317)
Net income $200,154 $246,928
Earnings per common share - primary:
Income before
extraordinary charge (7) $4.71 $5.60
Extraordinary charge (0.09) (0.27)
Net income (7) $4.62 $5.33
Average common and common
equivalent shares outstanding 42,261 42,567
Earnings per common share - fully diluted:
Income before
extraordinary charge (7) $4.64 $5.48
Extraordinary charge (0.09) (0.26)
Net income (7) $4.55 $5.22
Average common and common
equivalent shares outstanding 42,934 43,448
(1) Selling and administrative expense includes charges of $10.0
million and $1.7 million for the three months and $22.5 million and
$3.4 million for the twelve months ended December 31, 1996 and
December 31, 1995, respectively, for an estimated payment under the
company's Long-Term Cash Incentive Plan, established in January,
1994.
(2) Cost of sales and selling and administrative expense include
charges of approximately $18.0 million and $6.0 million,
respectively, relating to 1995 personnel reductions.
(3) The gain on the sale of Star Forms of $17.0 million increased
earnings per share on a fully diluted basis by $.41 for the three
months and $.40 for the twelve months ended December 31, 1996. In
1995, the company recorded an estimated loss on the sale of $30
million, reducing earnings per share on a fully diluted basis by $.69
for the twelve months ended December 31, 1995.
(4) Other, net for the twelve months ended December 31, 1995
includes a settlement of a disputed charge of $7.1 million with an
equipment vendor.
(5) The effective tax rate is 2.8% and 37.0% for the three months
and 35.2% and 39.4% for the twelve months ended December 31, 1996 and
December 31, 1995, respectively. There is no tax impact related to
the sale of Star Forms. Excluding the sale of Star Forms, the
effective tax rate for all periods above is 37%.
(6) The extraordinary charge in the fourth quarter of 1996
relates to the early retirement of $5 million of debt. There are no
tax benefits relating to this charge. The extraordinary charges for
the twelve months ended December 31, 1996 and December 31, 1995 also
relate to early retirement of debt and are shown net of taxes of $2.2
million and $7.1 million, respectively.
(7) The calculation of earnings per share for the three and
twelve months ended December 31, 1996 includes a deduction of $1.2
million and $4.8 million, respectively, for the dividend requirements
of the company's LIBOR and Series C preferred stock and the
amortization of the difference between the net proceeds from the
LIBOR preferred stock and its mandatory redemption value. For the
three and twelve months ended December 31, 1995 the calculation of
earnings per share included a deduction of $1.5 million and $10.0
million, respectively, for the same items, and a deduction of $9.9
million ($.22 per fully diluted share) for fees and expenses relating
to the partial redemption of the Series C preferred stock.
(8) In December, 1996, the company announced the redemption of
its 7% PRIDES Series B Convertible preferred stock at a conversion
rate of .82 of a common share for each depositary share of preferred
stock. This rate was used in the computation of both primary and
fully diluted average common and common equivalent shares outstanding
for the quarter ended December 31, 1996. This transaction was
completed on January 9, 1997.
BOWATER INCORPORATED AND SUBSIDIARIES
(Unaudited, in thousands)
Consolidated Balance Sheet
Dec. 31, Dec. 31,
1996 1995
Current assets:
Cash and cash equivalents $85,259 $264,571
Marketable securities 345,398 0
Accounts receivable, net 185,724 241,847
Inventories 123,745 154,662
Other current assets 13,629 12,943
Total current assets 753,755 674,023
Timber and timberlands 395,675 430,400
Fixed assets, net 1,636,705 1,711,003
Intangible assets, net 0 23,733
Other assets 79,409 69,006
$2,865,544 $2,908,165
Current liabilities:
Current installments of long-term debt $1,604 $1,600
Accounts payable and accrued liabilities 216,328 189,424
Income taxes payable 6,057 85,472
Dividends payable (1) 29,892 8,826
Total current liabilities 253,881 285,322
Long-term debt, net of current installments 759,029 816,532
Other long-term liabilities 171,651 181,411
Deferred income taxes 358,858 329,101
Minority interests in subsidiaries 126,246 150,768
Redeemable LIBOR preferred stock 24,746 49,619
Shareholders' equity 1,171,133 1,095,412
$2,865,544 $2,908,165
Twelve Months Ended
Consolidated Cash Flow Dec. 31, Dec. 31,
1996 1995
Cash flow from operating activities $336,207 $607,681
Cash flow from investing activities:
Cash invested in fixed assets/timberlands (106,960) (95,972)
Disposition of fixed assets and timberlands 126,714 4,256
Sale of Star Forms 53,946 0
Cash invested in marketable securities (345,398) 0
(271,698) (91,716)
Cash flow from financing activities:
Cash dividends, incl. minority interests (70,528) (41,783)
Purchases/payments of long-term debt (63,521) (317,282)
Purchase of common stock (98,762) 0
Redemption of preferred stock of subsidiary 0 (15,000)
Partial redemption of LIBOR and Series C
preferred stock (25,000) (91,309)
Stock options exercised 12,275 57,730
Other 1,715 1,482
(243,821) (406,162)
Increase (decrease) in cash and cash
equivalents $(179,312) $109,803
(1) Includes a $19.6 million dividend due to a minority shareholder.
CONTACT: Bowater Incorporated Media contact: Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. D. Leahy
Leahy is the name of a Canadian folk music group. The eight band members, all from the Leahy family of eleven siblings, are from Lakefield, Ontario and have been , 864/282-9571 (Office) 864/234-0941 (Home) or Analyst Contact: James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. H. Dorton Dorton (or Dourton) is a village in Buckinghamshire, England. It is located near the border with Oxfordshire, about six miles north of Thame. The village name is Anglo Saxon in origin, and means 'farm at a narrow pass'. , 864/282-9500 (Office) 864/228-2805 (Home) |
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