Bowater announces second quarter 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)--July 15, 1996--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 1996 second quarter earnings of $44.3 million, or $1.00 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, before an extraordinary charge of $1.9 million, or $.04 per share, resulting from the open market purchase of outstanding debt. This compares to net income of $59.8 million, or $1.31 per share, for the same period last year. 1996 second quarter sales were $454.0 million, compared to $486.8 million for the second quarter of 1995. Net income for the first six months of 1996 was $155.3 million, or $3.50 per fully diluted share, on sales of $922.8 million. In addition to the second quarter charge, the 1996 six-month results also include a first quarter $37.0 million after tax gain, or $.84 per fully diluted share, on the sale of timberlands. Net income for the first six months of 1995 was $98.8 million, or $2.16 per fully diluted share, on sales of $936.3 million. During the second quarter of 1996 the company repurchased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 450,000 shares of common stock as part of a previously announced stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . Since initiation initiation, the transition and attendant ceremonies, such as ordeals and rites, involved in passing from one state or status to another, often from childhood to adulthood. It was among the most important social institutions of early humans. of the program, the company has purchased approximately 2.1 million shares, or 53 percent, of the total shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. . The company also repurchased approximately $28 million (3 percent of outstanding debt) of its 9% debentures, due 2009. An additional $22 million of these debentures were repurchased in July July: see month. 1996. Total debt to capital at June June: see month. 30, 1996, was 36.8 percent, compared to 38.1 percent at the end of the prior quarter. Arnold M. Nemirow, Chairman, President and Chief Executive Officer, said, "Shipments 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 , coated groundwood papers and market pulp increased over first quarter levels, but 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. was negatively affected by pressure on the selling prices of our products. However, market pulp prices began to improve late in the quarter. Healthy cash flows continue to improve our financial condition." 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 is the largest producer of newsprint in the U.S., and also makes coated and uncoated groundwood papers, bleached kraft pulp, continuous computer forms 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, five converting plants 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. -0-
BOWATER INCORPORATED AND SUBSIDIARIES
Consolidated Statement of Operations
(Unaudited, in 000's except per share amounts)
Quarter Ended
June 30, June 30,
1996 1995
Net sales $ 453,951 $ 486,836
Cost of sales 297,432 297,815 (2)
Depreciation, amortization,
and cost of timber harvested 42,477 42,754
Gross profit 114,042 146,267
Selling and administrative
expense 23,703 (1) 28,587 (2)
Operating income 90,339 117,680
Other expense (income):
Interest income (5,191) (1,393)
Interest expense, net 18,223 20,310
Gain on sale of timberlands (1,838) (21)
Other, net (1,919) (4,163)
Income before income taxes
and minority interests 81,064 102,947
Provision for income taxes 29,994 36,935
Minority interests 6,727 6,181
Income before
extraordinary charge 44,343 59,831
Extraordinary charge, net
of taxes of $1,222 in 1996
and $3,808 in 1995 (1,931) ---
Net income $ 42,412 $ 59,831
Earnings per common share - primary
Income before
extraordinary charge (3) $ 1.03 $ 1.35
Extraordinary charge (0.05) ---
Net income (3) $ 0.98 $ 1.35
Average common and common
equivalent shares
outstanding 42,273 42,331
Earnings per common share - fully diluted
Income before
extraordinary charge (3) $ 1.00 $ 1.31
Extraordinary charge (0.04) ---
Net income (3) $ 0.96 $ 1.31
Average common and common
equivalent shares
outstanding 43,154 43,428
Six Months Ended
June 30, June 30,
1996 1995
Net sales $ 922,834 $ 936,314
Cost of sales 557,438 582,592
Depreciation, amortization,
and cost of timber harvested 87,682 87,392
Gross profit 277,714 266,330
Selling and administrative
expense 44,654 (1) 51,397
Operating income 233,060 214,933
Other expense (income):
Interest income (10,043) (3,242)
Interest expense, net 36,570 43,614
Gain on sale of timberlands (76,701) (385)
Other, net (2,353) (4,815)
Income before income taxes
and minority interests 285,587 179,761
Provision for income taxes 105,668 66,512
Minority interests 22,671 8,365
Income before
extraordinary charge 157,248 104,884
Extraordinary charge, net
of taxes of $1,222 in 1996
and $3,808 in 1995 (1,931) (6,084)
Net income $ 155,317 $ 98,800
Earnings per common share - primary
Income before
extraordinary charge (3) $ 3.63 $ 2.37
Extraordinary charge (0.05) (0.15)
Net income (3) $ 3.58 $ 2.22
Average common and common
equivalent shares
outstanding 42,781 41,903
Earnings per common share - fully diluted
Income before
extraordinary charge (3) $ 3.54 $ 2.30
Extraordinary charge (0.04) (0.14)
Net income (3) $ 3.50 $ 2.16
Average common and common
equivalent shares
outstanding 43,662 43,175
(1) Selling and administrative expense includes charges of $5.4 million and $7.1 million for the quarter and six months ended June 30, 1996, 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 the company's 1995 companywide personnel reductions. (3) The calculation of earnings per share for the second quarter and six months ended June 30, 1996 includes a deduction of $1.2 million and $2.4 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 second quarter and six months ended June 30, 1995 the calculation of earnings per share included a deduction of $2.9 million and $5.7 million, respectively, for the same items.
BOWATER INCORPORATED AND SUBSIDIARIES
(Unaudited, $ in 000's)
Consolidated Balance Sheet June 30, December 31,
1996 1995
Cash and cash equivalents $ 142,894 $ 264,571
Marketable securities 191,016 ---
Accounts receivable, net 241,499 241,847
Inventories 167,732 154,662
Other current assets 14,622 12,943
Total current assets 757,763 674,023
Timber and timberlands 394,260 430,400
Fixed assets, net 1,656,387 1,711,003
Intangible assets, net 21,361 23,733
Other assets 63,492 69,006
$2,893,263 $2,908,165
Current installments of long-term debt $ 1,604 $ 1,600
Accounts payable and accrued liabilities 182,758 189,424
Income taxes payable 13,141 85,472
Dividends payable 10,205 8,826
Total current liabilities 207,708 285,322
Long-term debt, net of current installments 786,996 816,532
Other long-term liabilities 190,000 181,411
Deferred income taxes 354,689 329,101
Minority interests in subsidiaries 144,080 150,768
Redeemable LIBOR preferred stock 49,683 49,619
Shareholders' equity 1,160,107 1,095,412
$2,893,263 $2,908,165
Six Months Ended
Consolidated Cash Flow June 30, June 30,
1996 1995
Cash flow from operating activities: $ 140,184 $ 258,060
Cash flow from (used for) investing activities:
Cash invested in fixed assets and timberlands (34,893) (43,770)
Disposition of fixed assets and timberlands 116,999 1,273
Cash invested in marketable securities (191,016) ---
(108,910) (42,497)
Cash flow from (used for) financing activities:
Cash dividends, including minority interests (49,037) (20,778)
Purchases/payments of long-term debt (32,599) (191,672)
Purchase of common stock (81,433) ---
Redemption of preferred stock of subsidiary --- (15,000)
Stock options exercised 9,267 27,199
Other 851 809
(152,951) (199,442)
Increase (decrease) in cash and
cash equivalents $ (121,677)$ 16,121
CONTACT: Bowater Incorporated, Greenville 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) Analyst contact: Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. J. D'Antuono 864/282-9370 (Office) 864/234-5899 (Home) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion