Federal Paper Board Reports Fourth Quarter Results.MONTVALE Montvale may mean:
See: New York Stock Exchange :FBO FBO Federal Business Opportunities FBO FedBizOpps (formerly Commerce Business Daily) FBO Fixed Base Operator FBO For the Benefit Of (finance) FBO Fixed Base Operation FBO Faith Based Organization ) today announced record earnings for 1995 of $211.4 million or $4.34 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. common share before a non-recurring 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. charge of $69.1 million or $1.42 per fully diluted common share associated with the 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). of the Imperial Bondware cup operations. Record sales for 1995 of $1,913.1 million were up 21.9 percent compared to $1,569.6 million last year. Net income for 1995 was $142.3 million or $2.92 per fully diluted common share compared to $72.0 million or $1.52 per fully diluted common share last year. Included in this year's results is a non-recurring pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $82.1 million which includes a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill which is not deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for tax purposes. Net income for 1994 included favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustments of $8.9 million or $0.21 per fully diluted common share associated with the settlement of prior year tax audits and the cumulative recalculation re·cal·cu·late tr.v. re·cal·cu·lat·ed, re·cal·cu·lat·ing, re·cal·cu·lates To calculate again, especially in order to eliminate errors or to incorporate additional factors or data. of the deferred tax liability reflecting a change in the effective state tax rate. Record sales for the sixteen weeks ended December December: see month. 30, 1995, were $556.1 million compared to $528.3 million for the same period last year. Net loss for the fourth quarter of 1995 was $17.9 million or $.38 per fully diluted common share compared to net income of $48.1 million or $1.02 per fully diluted common share for the fourth quarter of 1994. Fourth quarter earnings for 1995 include a non-recurring (pre-tax charge of $78.1 million) after-tax charge of $66.8 million or $1.42 per fully diluted common share related to the restructuring of the Imperial Bondware cup operations. Fourth quarter earnings before a non-recurring charge were $48.9 million or $1.04 per fully diluted common share. John R. Kennedy, President, stated "We are generally pleased with the Company's overall performance in 1995, but were disappointed with the fourth quarter operating results. Our primary businesses, market pulp and bleached paperboard paperboard, material similiar in shape and composition to paper, but generally thicker, stronger, and more rigid. Paper machines, e.g., Fourdrinier machines, are used to make sheets of paperboard. , performed very well in the first three quarters of 1995 benefiting from strong demand and improved selling prices, but began to deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. during the fourth quarter of this year." Mr. Kennedy further stated, "The Department of Justice has decided not to proceed further with its review of the proposed merger between Federal Paper Board and International Paper. We expect the merger between the two companies to be completed in the first quarter of 1996. The merger will enhance shareholder value while continuing to provide an exceptionally high quality of products and service to our customers." Federal Paper Board Company, Inc. manufactures and sells solid bleached paperboard, bleached market pulp, recycled paperboard, paper cups, folding cartons The folding carton created the packaging industry as it is known today, beginning in the late 19th century. Basically, a folding carton is made of paperboard, and is cut, folded, laminated and printed for transport to manufacturers. , 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 and uncoated free-sheet paper. The Company operates two bleached kraft paperboard and pulp mills A pulp mill is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing. , a recycled paperboard mill, four sheeting and distribution centers, an extrusion coating plant, three cup plants, four folding carton plants and five wood products mills 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. along with an uncoated free-sheet paper mill and a sheeting and distribution center in the United Kingdom. Federal employs approximately 6,500 people. -0-
FEDERAL PAPER BOARD COMPANY, INC.
PRELIMINARY RESULTS
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In millions except per share amounts)
For the For the
Sixteen Weeks Ended Fifty-Two Weeks Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
1995 1994 1995 1994
NET SALES $556.1 $528.3 $1,913.1 $1,569.6 Costs and Expenses: Cost of Products Sold 374.2 364.3 1,253.4 1,143.4 Depreciation, Amortization & Cost of Timber Harvested 47.0 46.2 153.3 146.4 Selling and Administrative Expenses 33.4 26.9 96.9 74.2 Interest Expense 26.4 29.2 89.8 88.3 Other - Net (A) 77.0 (5.3) 72.1 16.4 Total Costs and Expenses 558.0 461.3 1,665.5 1,468.7 Income (Loss) before Taxes (1.9) 67.0 247.6 100.9 Provision for Income Taxes (B) 16.0 18.9 105.3 28.9 Net Income (Loss) $(17.9) $48.1 $142.3 $72.0 AVERAGE COMMON SHARES OUTSTANDING: Assuming No Dilution 47.2 42.5 44.9 42.3 Assuming Full Dilution (C) 47.2 47.4 48.7 43.2 INCOME PER COMMON SHARE: Assuming No Dilution ($0.38) $1.09 $3.11 $1.55 Assuming Full Dilution (C) ($0.38) $1.02 $2.92 $1.52 (A) Other-net for the fourth quarter and year-to-date periods of 1995 includes non-recurring charges of $78.1 million and $82.1 million, respectively, related to the restructuring of the Imperial Bondware cup operations. The year-to-date period of 1995 also includes a gain of $9.5 million on the sale of certain assets. (B) The increase in the 1995 tax provision was triggered by the write-off of goodwill associated with the restructuring of the Imperial Bondware cup operations which is not deductible for tax purposes. Fiscal year 1994 includes favorable adjustments of $2.9 million due to the settlement of prior year tax audits and $6.0 million due to the cumulative recalculation of deferred taxes reflecting a change in the Company's state effective tax rate. (C) Earnings per common share assuming full dilution is based on the weighted average number of common shares outstanding including the dilutive effects of stock options outstanding and the conversion of the Company's preferred stock. -0-
FEDERAL PAPER BOARD COMPANY, INC.
PRELIMINARY RESULTS
INDUSTRY SEGMENT INFORMATION
(Unaudited)
(In millions)
For the For the
Sixteen Weeks Ended Fifty-Two Weeks Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
1995 1994 1995 1994
NET SALES: Paper, Paperboard and Pulp $397.3 $373.5 $1,417.5 $1,071.0 Wood Products 67.8 83.6 244.5 267.9 Converting Operations 122.2 108.5 374.8 346.1 Intersegment Eliminations (31.2) (37.3) (123.7) (115.4) Total $556.1 $528.3 $1,913.1 $1,569.6 INCOME (LOSS) BEFORE TAXES:
Paper, Paperboard
and Pulp $109.2 $87.2 $425.9 $157.3
Wood Products 1.1 16.6 21.4 69.9
Converting
Operations (A) (77.6) (0.7) (75.4) 7.2
Intersegment
Eliminations 2.4 (1.1) (4.5) (0.8)
General Corporate
Expense - Net (10.6) (5.8) (30.0) (44.4)
Interest Expense (26.4) (29.2) (89.8) (88.3)
Total $(1.9) $67.0 $247.6 $100.9
(A) Converting Operations includes a non-recurring charge of $78.1 million and $82.1 million in the fourth quarter and year-to-date periods of 1995, respectively, associated with the previously announced restructuring of the Company's Imperial Bondware cup operations. CONTACT: Federal Paper Board Company, Inc. Quentin Quentin (Latin Quintinus, from Quintus) is a Latin-derived given name meaning "the fifth". People People commonly known solely as Quentin include:
Executive Vice President (201) 391-1776 |
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