Buckeye Reports Record Fiscal Year Sales and Earnings.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.--(BUSINESS WIRE)--Aug. 12, 1998--Buckeye 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 earnings per share of $1.45 (net income of $55.3 million) for the fiscal year ended June June: see month. 30, 1998, up 5% from $1.38 per share (net income of $53.3 million) earned in the prior fiscal year. 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 were $630.2 million, 13% above the prior year. Buckeye's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the year was $162.4 million, up 14% from last year. The Company set new records in fiscal 1997-98 for sales, earnings, and EBITDA. Earnings per share for the April-June, 1998 quarter were $0.38 (net income of $14.6 million) matching the strong fourth quarter in the prior year. Net sales for the quarter were $160.8 million, an increase of 7% over the same period last year. Buckeye's Chairman, 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. E. Cannon, said, "In the past fiscal year, the Company has generated substantial growth. Not only were records set in key measures of financial performance, but we also have finished the integration of the three acquisitions made over the last two years while completing the start-up Start-up The earliest stage of a new business venture. and customer qualification of our new plant at Cork, Ireland Cork, Ireland is a term which may refer to the following places in southern Ireland, depending on context.
Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive markets. Additionally, our research and development organization has filed patents on several inventions that we expect will play a major role in our future success." During the fiscal year just ended, the Company repurchased 911,000 shares. The repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of approximately 1.9 million additional shares has been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by Buckeye's Board. Commenting on the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, Mr. Cannon said, "Considering the recent decline in our share price, we are even more convinced that our stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and that share repurchases are appropriate. Share repurchases are a discretionary and tax efficient way to share a portion of our cash flow with shareholders." 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. is a leading manufacturer and marketer of specialty cellulose cellulose, chief constituent of the cell walls of plants. Chemically, it is a carbohydrate that is a high molecular weight polysaccharide. Raw cotton is composed of 91% pure cellulose; other important natural sources are flax, hemp, jute, straw, and wood. and absorbent absorbent /ab·sor·bent/ (-sor´bent) 1. able to take in, or suck up and incorporate. 2. a tissue structure involved in absorption. 3. a substance that absorbs or promotes absorption. products with 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. , Canada, Germany, Ireland, and Switzerland. Its products are sold worldwide. Certain matters discussed in this press release may constitute forward -looking statements 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, markets, products, services, 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. -0-
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED STATEMENT OF EARNINGS
in ($000)
Three Months Ended Twelve Months Ended
June 30, June 30,
--------------------- ---------------------
1998 1997 1998 1997
--------- --------- --------- ---------
Net sales $ 160,813 $ 149,928 $ 630,210 $ 558,933
Cost of goods sold 117,454 107,392 461,757 411,751
--------- --------- --------- ---------
Gross margin 43,359 42,536 168,453 147,182
Selling, research and
administrative
expenses 12,200 11,598 46,042 37,790
--------- --------- --------- ---------
Operating income 31,159 30,938 122,411 109,392
#
Net interest expense
and amortization of
debt costs 8,756 8,360 36,269 27,926
Other 825 513 2,285 1,213
--------- --------- --------- ---------
Income before
income taxes 21,578 22,065 83,857 80,253
#
Income taxes 7,021 7,453 28,597 26,979
--------- --------- --------- ---------
Net income $ 14,557 $ 14,612 $ 55,260 $ 53,274
========= ========= ========= =========
Earnings per share $ 0.40 $ 0.39 $ 1.49 $ 1.40
========= ========= ========= =========
Earnings per share -
assuming dilution $ 0.38 $ 0.38 $ 1.45 $ 1.38
========= ========= ========= =========
Weighted average
shares outstanding 36,799,191 37,508,814 37,109,057 38,127,212
Weighted average
shares outstanding -
assuming dilution 38,013,986 38,285,232 38,233,963 38,720,772
EBITDA $ 40,438 $ 39,665 $ 162,397 $ 143,024
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEET
in ($000)
June 30 June 30
1998 1997
------------- -------------
Assets
Current Assets:
Cash and short term
investments $ 4,372 $ 8,064
Accounts receivable-net 88,721 79,703
Inventories 100,372 107,390
Other current assets 10,041 5,966
------------- -------------
Total current assets 203,506 201,123
Property, plant and
equipment-net 401,947 382,677
Goodwill 132,488 140,845
Other assets 13,595 12,819
------------- -------------
Total assets $ 751,536 $ 737,464
============= =============
Liabilities and shareholders' equity
Accounts payable and
accrued expenses $ 74,689 $ 79,591
Current portion of
long-term debt and
notes payable 1,340 3,440
------------- -------------
Total current liabilities 76,029 83,031
Long-term debt 456,332 474,631
Deferred income taxes 34,609 29,846
Other liabilities 28,887 21,766
Shareholders' equity 155,679 128,190
------------- -------------
Total liabilities and
shareholders' equity $ 751,536 $ 737,464
============= =============
CONTACT: Buckeye Technologies Inc., Memphis
Media Contact: Sondra Dowdell, 901/320-8244
Financial Contact: Frank McGrew, 901/320-8510
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