Buckeye Announces First Quarter Results.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn. -- Buckeye buckeye: see horse chestnut. buckeye Any of about 13 trees and shrubs of the genus Aesculus (family Hippocastanaceae), native to North America, southeastern Europe, and eastern Asia. Technologies Inc. (NYSE NYSE See: New York Stock Exchange :BKI BKI Babbar Khalsa International BKI Kota Kinabalu, Sabah, Malaysia - Kota Kinabalu (Airport Code) BKI Bible Knowledge Institute BKI Brasil Kaffe Import (Danish Coffee Importer) ) today announced that it incurred a net loss of $0.3 million after tax in the quarter ended September September: see month. 30, 2005. The Company's results include $1.3 million after tax in early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt costs and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses associated with the previously announced plan to close the Glueckstadt, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). cotton linter lint·er n. 1. The short fibers that cling to cottonseeds after the first ginning. Often used in the plural. 2. A machine that removes these short fibers from the seeds of cotton. pulp plant at the end of calendar year 2005. During the same quarter of the prior year, the Company earned $4.4 million after tax which included $0.8 million after tax in restructuring costs primarily related to the closure of its Cork, Ireland Cork, Ireland is a term which may refer to the following places in southern Ireland, depending on context.
Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the just completed quarter were $165.5 million, 1% below the $167.3 million in the same quarter of the prior year. Buckeye Chairman David B. Ferraro Fer`ra´ro prop. n. 1. Geraldine Anne Ferraro erson>, a United States politician. Born in 1935, she was a congresswoman from New York in the United States Congress from 1978 to 1984, and ran unsuccessfully in 1984 a candidate for Vice commented, "The just completed quarter was a very difficult one for Buckeye. Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , followed by Hurricane Rita Hurricane Rita was the fourth-most intense Atlantic hurricane ever recorded and the most intense tropical cyclone ever observed in the Gulf of Mexico. Rita caused $11.3 billion in damage on the U.S. Gulf Coast in September 2005. , drove already high energy and
chemical costs even higher and forced transportation providers to
increase their pricing. Our energy, chemical, and transportation costs
were about $8 million more in the quarter ending September 30, 2005 than
they were in the same period of the prior year."
Mr. Ferraro went on to say, "In addition to these high costs, transportation disruptions and lower sales of fluff pulp resulted in our revenue being slightly below the previous year. As a result of the extraordinary and unprecedented high costs, we have implemented price surcharges of up to 5% on most products effective October October: see month. 1st. We are also working to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. rising costs and believe that the combination
of cost savings, the price surcharges and volume growth in the
seasonally stronger second quarter will enable us to be profitable in
October-December 2005."
Buckeye, a leading manufacturer and marketer of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. fibers and nonwoven non·wo·ven adj. Made by a process not involving weaving. Used of textiles. n. Material or a fabric made by a process not involving weaving. materials, is headquartered in Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. , USA. The Company currently operates facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Germany, 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 , and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. . Its products are sold worldwide to makers of consumer and industrial goods industrial goods npl → bienes mpl de producción . Certain matters discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three Months Ended
----------------------------------------
September 30, June 30, September 30,
2005 2005 2004
------------- ----------- --------------
Net sales $165,456 $183,927 $167,323
Cost of goods sold 141,263 154,857 137,694
------------- ----------- --------------
Gross margin 24,193 29,070 29,629
Selling, research and
administrative expenses 11,406 11,720 9,726
Amortization of intangibles
and other 531 461 603
Impairment of long-lived
assets - 316 -
Restructuring costs 1,951 2,404 1,196
------------- ----------- --------------
Operating income 10,305 14,169 18,104
Net interest expense and
amortization of debt costs (10,184) (10,566) (11,278)
Loss on early extinguishment
of debt (151) - -
Gain on sale of assets held
for sale - - -
Foreign exchange and other (368) 88 (33)
------------- ----------- --------------
Income (loss) before income
taxes (398) 3,691 6,793
Income tax expense (benefit) (109) (5,091) 2,378
------------- ----------- --------------
Net income (loss) $(289) $8,782 $4,415
============= =========== ==============
Earnings (loss) per share
Basic earnings (loss) per
share $(0.01) $0.23 $0.12
Diluted earnings (loss) per
share $(0.01) $0.23 $0.12
Weighted average shares for
basic earnings per share 37,588 37,586 37,312
Adjusted weighted average
shares for diluted earnings
per share 37,588 37,604 37,458
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30 June 30
2005 2005
------------ -----------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $11,810 $9,926
Accounts receivable, net 106,432 118,215
Inventories 123,632 107,895
Deferred income taxes and other 11,683 10,468
------------ -----------
Total current assets 253,557 246,504
Property, plant and equipment, net 539,330 525,931
Goodwill 143,065 139,430
Intellectual property and other, net 36,694 37,872
------------ -----------
Total assets $972,646 $949,737
============ ===========
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable $35,715 $37,226
Accrued expenses 58,978 48,401
Current portion of capital lease
obligations 699 685
Current portion of long-term debt 998 1,376
------------ -----------
Total current liabilities 96,390 87,688
Long-term debt 543,299 535,539
Deferred income taxes 32,882 34,660
Capital lease obligations 1,202 1,382
Other liabilities 21,371 20,879
Stockholders' equity 277,502 269,589
------------ -----------
Total liabilities and stockholders' equity $972,646 $949,737
============ ===========
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Three Months Ended
---------------------------
September 30, September 30,
2005 2004
------------- -------------
OPERATING ACTIVITIES
--------------------
Net income (loss) $(289) $4,415
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation 11,589 11,393
Amortization 831 922
Loss on early extinguishment of debt 151 -
Deferred income taxes (2,330) 1,359
Other 691 454
Change in operating assets and
liabilities
Accounts receivable 12,199 2,059
Inventories (15,257) (6,093)
Other assets (1,094) 837
Accounts payable and other
liabilities 8,288 5,651
------------- -------------
Net cash provided by operating activities 14,779 20,997
INVESTING ACTIVITIES
---------------------
Purchases of property, plant & equipment (20,280) (4,970)
Other (178) 84
------------- -------------
Net cash used in investing activities (20,458) (4,886)
FINANCING ACTIVITIES
---------------------
Net borrowings (payments) under line of
credit 23,100 -
Payments on long term debt and other (15,794) (20,230)
Net proceeds from sale of equity
interests and other - 244
------------- -------------
Net cash provided by (used in) financing
activities 7,306 (19,986)
------------- -------------
Effect of foreign currency rate
fluctuations on cash 257 476
Increase (decrease) in cash and cash
equivalents 1,884 (3,399)
------------- -------------
Cash and cash equivalents at beginning of
period 9,926 27,235
------------- -------------
Cash and cash equivalents at end of period $11,810 $23,836
============= =============
BUCKEYE TECHNOLOGIES INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
(In thousands)
Three Months Ended
---------------------------------------
SEGMENT RESULTS September 30, June 30, September 30,
2005 2005 2004
------------- ----------- -------------
Specialty Fibers
Net sales $114,561 $133,344 $118,046
Operating income (a) 10,163 15,008 16,898
Depreciation and
amortization (b) 7,274 7,144 6,961
Capital expenditures 19,330 19,588 3,914
Nonwoven Materials
Net sales $57,326 $55,888 $55,922
Operating income (a) 2,560 2,395 3,568
Depreciation and
amortization (b) 4,038 3,866 4,223
Capital expenditures 599 1,510 976
Corporate
Net sales $(6,431) $(5,305) $(6,645)
Operating loss (a) (2,418) (3,234) (1,759)
Depreciation and
amortization (b) 845 752 866
Capital expenditures 351 1,217 80
Total
Net sales $165,456 $183,927 $167,323
Operating income (a) 10,305 14,169 18,707
Depreciation and
amortization (b) 12,157 11,762 12,050
Capital expenditures 20,280 22,315 4,970
(a) Asset impairment and restructuring costs are included in operating
income for the corporate segment.
(b) Depreciation and amortization includes depreciation, depletion and
amortization of intangibles.
Three Months Ended
---------------------------------------
ADJUSTED EBITDA September 30, June 30, September 30,
2005 2005 2004
------------- ----------- -------------
Income (loss) $(289) $8,782 $4,415
Income tax expense (benefit) (109) (5,091) 2,378
Net interest expense 9,808 10,187 10,895
Amortization of debt costs 376 379 383
Early extinguishment of debt 151 - -
Depreciation, depletion and
amortization 12,157 11,762 12,050
------------- ----------- -------------
EBITDA 22,094 26,019 30,121
Interest income 243 339 164
Asset impairments - 316 -
Loss on disposal of assets (c) 101 341 130
Restructuring charges (d) 1,951 2,404 -
------------- ----------- -------------
Adjusted EBITDA $24,389 $29,419 $30,415
============= =========== =============
We calculate EBITDA as earnings before cumulative effect of change
in accounting plus net interest expense, income taxes,
depreciation and amortization. Adjusted EBITDA further adjusts
EBITDA by adding back the following items: interest income,
cumulative effect of changes in accounting, asset impairment
charges, restructuring charges and other (gains) losses. You
should not consider adjusted EBITDA to be an alternative measure
of our net income, as an indicator of operating performance; or
our cash flow, as an indicator of liquidity. Adjusted EBITDA
corresponds with the definition contained in our US revolving
credit facility and it provides useful information concerning our
ability to comply with debt covenants. Prior year calculations
have been restated to conform with the current credit facility
definition. Although we believe adjusted EBITDA enhances your
understanding of our financial condition, this measure, when
viewed individually, is not a better indicator of any trend as
compared to other measures (e.g., net sales, net earnings, net
cash flows, etc.).
On September 30, 2005 we had borrowing capacity of $42.5 million
on the revolving credit facility. The portion of this amount that
we could borrow will depend on our financial results and ability
to comply with certain borrowing conditions under the revolving
credit facility.
(c) The definition of Adjusted EBITDA limits the add back of losses on
disposal of assets to $1.0 million per year. Since we exceeded the
$1.0 million threshold during the three months ended June 30, 2005
our add back was limited to $341 of the $1,276 of losses recorded
during the quarter.
(d) The definition of Adjusted EBITDA limits the add back of
restructuring charges to costs incurred from October 1, 2002
through June 30, 2004, provided that the aggregate amount does not
exceed $6.0 million. Since we exceeded the $6.0 million threshold
during the three months ended June 30, 2004, restructuring charges
of $1,559 incurred between July 1, 2004 and December 31, 2004 are
not added back to Adjusted EBITDA. We amended our credit facility
on March 15, 2005. The amended credit facility provides for adding
back restructuring charges subsequent to December 31, 2004 not to
exceed $12.0 million.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion