Buckeye Reports October-December 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 it earned $1.9 million after tax (5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) in the quarter ended December December: see month. 31, 2005. The Company's results include $0.7 million after tax in 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 closure of 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. The Glueckstadt manufacturing facility ceased production in December. During the same quarter of the prior year, the Company earned $2.9 million after tax, which included $6.6 million after tax in restructuring and 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. costs and a $4.7 million after tax gain from the sale of a building and equipment located at 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 $188.3 million, 4% above the $180.6 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 , stated, "Business conditions continued to be very challenging during October-December. While we are pleased that we achieved sales growth, continuing high costs for chemicals, energy, and transportation combined with startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. expenses related to installing market pulp capability at our Americana Americana, term used to describe material printed in or about the Americas, or written by Americans; usually restricted to the formative period in the history of the two continents. , 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. facility depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. earnings." Mr. Ferraro went on to say, "Although high energy related costs and startup expenses at the Americana facility will continue to impact us in fiscal year 2006, product price increases we have implemented and the fact that we have essentially completed our capital expenditures related to converting Americana give us optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. that we will begin to restore margins and reduce our debt during the balance of the fiscal year." 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. 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 Six Months Ended
----------------------------- -------------------
December September December December December
31, 2005 30, 2005 31, 2004 31, 2005 31, 2004
--------- --------- --------- --------- ---------
Net sales $188,254 $165,456 $180,622 $353,710 $347,945
Cost of goods sold 162,546 141,263 149,475 303,809 287,169
--------- --------- --------- --------- ---------
Gross margin 25,708 24,193 31,147 49,901 60,776
Selling, research and
administrative
expenses 11,354 11,406 10,748 22,760 20,474
Amortization of
intangibles and
other 477 531 603 1,008 1,206
Impairment of long-
lived assets - - 12,010 - 12,010
Restructuring costs 1,141 1,951 363 3,092 1,559
--------- --------- --------- --------- ---------
Operating income 12,736 10,305 7,423 23,041 25,527
Net interest expense
and amortization of
debt costs (10,574) (10,184) (11,279) (20,758) (22,557)
Loss on early
extinguishment of
debt - (151) - (151) -
Gain on sale of
assets held for
sale - - 7,173 - 7,173
Foreign exchange and
other (22) (368) 267 (390) 234
--------- --------- --------- --------- ---------
Income (loss) before
income taxes 2,140 (398) 3,584 1,742 10,377
Income tax expense
(benefit) 286 (109) 671 177 3,049
--------- --------- --------- --------- ---------
Net income (loss) $1,854 $(289) $2,913 $1,565 $7,328
========= ========= ========= ========= =========
Earnings per share
Basic earnings
(loss) per share $0.05 ($0.01) $0.08 $0.04 $0.20
Diluted earnings
(loss) per share $0.05 ($0.01) $0.08 $0.04 $0.20
Weighted average
shares for basic
earnings per share 37,592 37,588 37,390 37,590 37,351
Adjusted weighted
average shares for
diluted earnings
per share 37,630 37,588 37,605 37,633 37,532
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31 June 30
2005 2005
----------- -----------
Assets
Current assets:
Cash and cash equivalents $10,477 $9,926
Accounts receivable, net 121,338 118,215
Inventories 120,488 107,895
Deferred income taxes and other 7,152 10,468
----------- -----------
Total current assets 259,455 246,504
Property, plant and equipment, net 539,017 525,931
Goodwill 142,615 139,430
Intellectual property and other, net 40,571 37,872
----------- -----------
Total assets $981,658 $949,737
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable $35,984 $37,226
Accrued expenses 51,800 48,401
Current portion of capital lease
obligations 789 685
Current portion of long-term debt 998 1,376
----------- -----------
Total current liabilities 89,571 87,688
Long-term debt 562,336 535,539
Deferred income taxes 31,919 34,660
Capital lease obligations 943 1,382
Other liabilities 21,350 20,879
Stockholders' equity 275,539 269,589
----------- -----------
Total liabilities and stockholders' equity $981,658 $949,737
=========== ===========
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Six Months Ended
---------------------
December December
31, 2005 31, 2004
---------------------
OPERATING ACTIVITIES
--------------------
Net income $1,565 $7,328
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Impairment of long-lived assets - 12,010
Depreciation 23,385 23,136
Amortization 1,599 1,674
Loss on early extinguishment of debt 151 -
Deferred income taxes (2,982) 1,824
Gain on sale of assets held for sale - (7,173)
Other 1,156 1,372
Change in operating assets and liabilities
Accounts receivable (3,130) (2,048)
Inventories (12,387) (336)
Other assets (2,798) (245)
Accounts payable and other liabilities 2,336 (7,977)
---------- ----------
Net cash provided by operating activities 8,895 29,565
INVESTING ACTIVITIES
Purchases of property, plant & equipment (34,358) (11,779)
Other (276) 13,575
---------- ----------
Net cash provided by (used in) investing
activities (34,634) 1,796
FINANCING ACTIVITIES
Net borrowings (payments) under line of credit 42,250 -
Payments on long term debt and other (15,963) (33,585)
Payments for debt issuance costs - (5)
Net proceeds from sale of equity interests 66 1,250
---------- ----------
Net cash provided by (used in) financing
activities 26,353 (32,340)
---------- ----------
Effect of foreign currency rate fluctuations on
cash (63) 1,859
Increase in cash and cash equivalents 551 880
---------- ----------
Cash and cash equivalents at beginning of
period 9,926 27,235
---------- ----------
Cash and cash equivalents at end of period $10,477 $28,115
========== ==========
BUCKEYE TECHNOLOGIES INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
(In thousands)
Three Months Ended Six Months Ended
----------------------------- -------------------
SEGMENT RESULTS December September December December December
31, 2005 30, 2005 31, 2004 31, 2005 31, 2004
--------- --------- --------- --------- ---------
Specialty Fibers
Net sales $137,898 $114,561 $129,854 $252,459 $247,900
Operating income (a) 11,559 10,163 17,050 21,722 33,948
Depreciation and
amortization (b) 7,406 7,274 7,123 14,680 14,084
Capital
expenditures 13,262 19,330 6,288 32,592 10,202
Nonwoven Materials
Net sales $58,460 $57,326 $58,065 $115,786 $113,987
Operating income (a) 2,739 2,560 3,448 5,299 7,016
Depreciation and
amortization (b) 4,062 4,038 4,403 8,100 8,626
Capital
expenditures 406 599 261 1,005 1,237
Corporate
Net sales $(8,104) $(6,431) $(7,297) $(14,535) $(13,942)
Operating loss (a) (1,562) (2,418) (13,075) (3,980) (15,437)
Depreciation and
amortization (b) 842 845 877 1,687 1,743
Capital
expenditures 410 351 260 761 340
Total
Net sales $188,254 $165,456 $180,622 $353,710 $347,945
Operating income (a) 12,736 10,305 7,423 23,041 25,527
Depreciation and
amortization (b) 12,310 12,157 12,403 24,467 24,453
Capital
expenditures 14,078 20,280 6,809 34,358 11,779
(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 Six Months Ended
----------------------------- -------------------
ADJUSTED EBITDA December September December December December
31, 2005 30, 2005 31, 2004 31, 2005 31, 2004
--------- --------- --------- --------- ---------
Income (loss) $1,854 $(289) $2,913 $1,565 $7,328
Income tax expense
(benefit) 286 (109) 671 177 3,049
Net interest expense 10,204 9,808 10,877 20,012 21,772
Amortization of debt
costs 370 376 402 746 785
Early extinguishment
of debt - 151 - 151 -
Depreciation,
depletion and
amortization 12,310 12,157 12,403 24,467 24,453
--------- --------- --------- --------- ---------
EBITDA 25,024 22,094 27,266 47,118 57,387
Interest income 167 243 199 410 363
Asset impairments - - 12,010 - 12,010
Loss on disposal of
assets 145 101 331 246 461
Restructuring
charges (c) 1,141 1,951 (7,173) 3,092 (7,173)
--------- --------- --------- --------- ---------
Adjusted EBITDA $26,477 $24,389 $32,633 $50,866 $63,048
========= ========= ========= ========= =========
We calculate EBITDA as earnings before cumulative effect of change in
accounting plus net interest expense, income taxes and 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. 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 December 31, 2005 we had borrowing capacity of $22.7 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
restructuring charges to costs incurred from October 1, 2002
through June 30, 2004, provided that the aggregate amount does not
exceed $6.0 million. 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