Hines Horticulture Reports 2002 Third Quarter.Business Editors IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Oct. 29, 2002 Hines Hines , Earl Known as "Fatha." 1905-1983. American musician. A prominent jazz pianist for 50 years, he first gained wide recognition for his recordings with Louis Armstrong in the 1920s. Horticulture horticulture [Lat. hortus=garden], science and art of gardening and of cultivating fruits, vegetables, flowers, and ornamental plants. Horticulture generally refers to small-scale gardening, and agriculture to the growing of field crops, usually on a large , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : HORT) today reported operating results for the third quarter and nine month period ended September September: see month. 30, 2002. Third Quarter Results In a seasonally moderated quarter during the Company's selling cycle, 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 up by almost 5% to $45.0 million from $43.0 million a year ago. The Company achieved these strong results despite the economic uncertainty that continues to pervade per·vade tr.v. per·vad·ed, per·vad·ing, per·vades To be present throughout; permeate. See Synonyms at charge. [Latin perv many regions of the nation. In addition, given Kmart's uncertain financial situation, Hines reduced its third quarter sales to the large retailer by more than $3 million from a year ago. As was the case earlier in the year, Nursery nursery, in horticulture, an establishment or area for the propagation, breeding, and early cultivation of plants. In North America the term nursery originally specified a place where hardy woody plants, especially fruit trees, were started; but as the market operations continued to lead the way as strategic growth initiatives, which have been implemented in recent years, favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted sales and operating performance. The Southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. region, in particular, had a strong quarter as the weather continued to improve after a late start to Spring. This region was one of the first, and has been one of the most successful, at implementing the Company's in-store service programs. These programs are enabling Hines to achieve greater sales per customer by offering a broader selection of green goods and by streamlining the ordering and in-store merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. activities. During the quarter, the Northeast region also continued to make significant headway head·way n. 1. Forward movement or the rate of forward movement, especially of a ship. 2. Progress toward a goal. 3. The clear vertical space beneath a ceiling or archway; clearance. 4. becoming a coordinated, customer-oriented operation focused on building relationships with key customers and enhancing profitability. The integration of the Company's operations in that part of the country coupled with the targeted introduction of store service programs has produced increasingly positive results. Management in the Northeast has also re-allocated its resources to concentrate specifically on customers with higher potential payback Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. and has selectively eliminated lower margin programs. Despite the strong sales performance compared with last year, as is typically the case, sales volumes in the Company's off-peak off-peak adj. Not in the period of most frequent or heaviest use: lower rates for telephone calls made during off-peak hours; travelers who take advantage of off-peak fares. quarters are not sufficient to produce operating gains. For the 2002 third quarter, Hines reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $3.1 million versus $3.6 million last year. Improved leveraging of general and administrative expenses during the quarter was offset by a lower gross margin due to in part to increased scrap rates. Financing costs for the quarter were down $2.7 million to $8.9 million. As previously announced, Hines completed the sale of its Sun Gro growing media business during the first quarter of this year. The Company used net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $120 million from the sale to pay down outstanding bank debt, significantly strengthening Hines' balance sheet and increasing the Company's financial flexibility. The net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter was $7.1 million, or ($0.32) per 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, compared with $8.9 million, or ($0.40) per diluted share, for last year's third quarter. In addition, for the earlier period, the Company recognized net income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $.9 million, net of tax, or $0.04 per diluted share, representing Sun Gro's net income. Accordingly, the net loss for the third quarter of 2001 was $8.0 million, or ($0.36) per share, versus $7.1 million, or ($0.32) per diluted share, for the 2002 period. Nine Month Results Net sales for the nine months ended September 30 were up by almost 4% to $295.9 million despite a nearly 50% reduction in sales to Kmart For the Australasian department store chain, see Kmart Australia. "K-Mart" is also a nickname for NBA player Kenyon Martin. Kmart is a chain of department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. , one of the Company's major customers. 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 $48.4 million compared with $48.9 million a year ago. Financing costs for the period were reduced by $5.8 million to $25.4 million. This improvement was primarily due to benefits from the substantial deleveraging that the Company achieved earlier this year, using proceeds from the sale of Sun Gro to make a substantial reduction in debt. Net income from continuing operations for the nine month period increased by almost 30% to $13.6 million, or $0.61 per diluted share, from $10.5 million, or $0.47 per diluted share, a year ago. Hines recorded the earlier sale of Sun Gro and related items on its financial statements for the nine months ended September 30, 2002 under discontinued operations. The sale of Sun Gro yielded a gain of $1.3 million, net of tax; however subsequent working capital adjustments resulted in a net loss from discontinued operations of $1.7 million, or ($.08) per diluted share. Discontinued operations for the first nine months of 2001 included Sun Gro's net income of $4.8 million, or $0.22 per diluted share, for the period. Having used proceeds from the Sun Gro transaction to significantly reduce debt, the Company's financial results for the first nine months of 2002 also include a $1.0 million 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. 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 unamortized financing costs related to the 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. After taking account of discontinued operations and related charges, the Company's net income for the first nine months was $10.8 million, or $0.49 per diluted share, compared with net income of $15.2 million, or $0.69 per diluted share, last year. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Highlights Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and P. Thigpen Thigpen is a family name that may refer to:
"In addition to our operating activities during the last half of the year, some of the most important work being done relates to planning for the following year's Spring selling season, and positioning the Company for the longer term. This year, both sets of activities are being undertaken within the context of further improving our return on capital, a significant point of emphasis for us. "Recognizing that distribution and logistics activities represent an ever increasing portion of the Company's cost structure, during the third quarter management focused broadly on identifying supply chain related efficiencies. With the process review well under way, we expect to start implementation of system enhancements in sufficient time to begin realizing benefits during next year's Spring selling season. "Also within the supply chain context, we are in the process of realigning our selling framework much more closely with the customer in order to enhance overall responsiveness and create greater efficiencies. This re-alignment is intended not only to address profitability issues, but growth at the top line as well. We believe that making Hines easier to do business with will provide an increased incentive for customers to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. a greater portion of their green goods purchases with us. "Recognizing the economic uncertainty, which is a current reality, a high priority in our planning for next year is maximizing operating flexibility. We are being extremely diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d in fine tuning Fine Tuning is the name of XM Satellite Radio's eclectic music channel. The program director for Fine Tuning is Ben Smith. The channel is described as "A musical oasis for the sophisticated listener culled from every imaginable genre and country. customer order volumes by product line to insure Insure can mean:
v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. relationships with important customers, and increase our overall sales potential in the marketplace. "Despite long term strategic advances, the current economic uncertainty makes performance in the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. difficult to project. We are hopeful the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. we witnessed in September sales will be reversed and that we will regain some traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in this quarter. The Southern portions of the country are typically the strong performers during our final quarter and we expect that to be the case again this year. However, as we reflect on our expectations for the year overall in the context of the current climate of political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability and economic uncertainty, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have only prudent to take a more cautious stance and moderate our eps range to $.48 - $.53, from $.53 - $.58. I hope that we will do better, but the current environment makes it impossible to predict performance in the short term with a high degree of confidence. Looking ahead to next year, we are taking a number of actions within the business and in the marketplace that we believe should positively impact our 2003 performance." About Hines Hines Horticulture is a leading operator of commercial nurseries in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , producing one of the broadest assortments of container-grown plants in the industry. The Company sells nursery products primarily to the retail segment, which includes premium independent garden centers, as well as leading home centers and mass merchandisers, such as Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box , Lowe's “Lowes” redirects here. For other uses, see Lowes (disambiguation). Lowe's Home Improvement Warehouse (NYSE: LOW) is a US-based chain of retail home improvement and appliance stores. and Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. .The Company's quarterly earnings conference call will be held at 4:45 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Tuesday Tuesday: see week. , October October: see month. 29, 2002 and is available live and in replay to all investors through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by accessing www.companyboardroom.com. Certain statements and information contained in this press release 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 Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Certain forward-looking statements contained in this press release, include, but are not limited to, information regarding the future economic performance and financial condition of the Company, the Company's ability to reduce its dependence on debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and reduce its leverage, the Company's ability to meet its short and long term liquidity needs, the plans and objectives of the Company's management and the Company's assumptions regarding such performance, financial condition, plans and objectives. Actual results may differ materially from the forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information in this release. Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release are publicly available in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2001 filed on April 1, 2002 and the Company's Prospectus, as filed on June June: see month. 22, 1998, pursuant to Rule 424(b) under the Securities Act of 1933. The Company's annual report and SEC filings, as well as news releases and other supplementary financial data are available by accessing the Company's website at www.hineshorticulture.com.
- Tables Follow -
HINES HORTICULTURE, INC.
Results of Operations for the Three Months Ended
September 30, 2002 and 2001
(Dollars in thousands except per share data)
(Unaudited)
Note: See Accompanying Footnotes on Bottom of Release
Footnotes Three Months Ended
--------------------------------
30-Sep 30-Sep %
(1) 2002 2001 Change
---------- ---------- ----------
Sales, net $ 45,049 $ 43,023 4.7%
Cost of goods sold 23,700 22,386 5.9%
---------- ----------
Gross profit 21,349 20,637 3.5%
% of sales 47.4% 48.0% -0.6%
Selling and distribution
expenses 18,492 17,255 7.2%
General and administrative
expenses 5,992 6,012 -0.3%
Other operating income (18) -
Amortization of goodwill - 934
---------- ----------
Total operating expenses 24,466 24,201 1.1%
---------- ----------
Operating loss (3,117) (3,564) -12.5%
% of sales -6.9% -8.3% 1.4%
Interest 5,770 7,151 -19.3%
Interest rate swap agreement
expense 2,043 3,278 -37.7%
Amortization of deferred
financing expenses 1,047 1,139 -8.1%
---------- ----------
8,860 11,568 -23.4%
---------- ----------
Loss before income tax benefit (11,977) (15,132) -20.8%
Income tax benefit (4,910) (6,187) -20.6%
---------- ----------
Net loss from continuing
operations (7,067) (8,945) -21.0%
Net income from discontinued
operations, net of tax - 919 -100.0%
---------- ----------
Net loss $ (7,067) $ (8,026) -11.9%
========== ==========
Basic and diluted earnings per
share: (3)&(4)
Net loss per common share
from continuing operations $ (0.32) $ (0.40) -20.9%
Net income per common share
from discontinued
operations $ - $ 0.04 -100.0%
---------- ----------
Net loss per common share $ (0.32) $ (0.36) -11.8%
========== ==========
Weighted average shares
outstanding-Basic 22,072,549 22,072,549
========== ==========
Weighted average shares
outstanding-Diluted 22,072,549 22,104,710
========== ==========
Diluted loss per common share
from continuing operations
excluding interest rate swap
agreement expense (3)&(4) $ (0.27) $ (0.32) -15.6%
========== ==========
EBITDA from continuing
operations (5) $ (925) $ (270) 242.6%
========== ==========
HINES HORTICULTURE, INC.
Results of Operations for the Nine Months Ended
September 30, 2002 and 2001
(Dollars in thousands except per share data)
(Unaudited)
Note: See Accompanying Footnotes on Bottom of Release
Footnotes Nine Months Ended
--------------------------------
30-Sep 30-Sep %
(1) 2002 2001 Change
---------- ---------- ----------
Sales, net $ 295,918 $ 284,961 3.8%
Cost of goods sold 144,237 134,394 7.3%
---------- ----------
Gross profit 151,681 150,567 0.7%
% of sales 51.3% 52.8% -1.6%
Selling and distribution
expenses 85,993 79,149 8.6%
General and administrative
expenses 19,424 19,786 -1.8%
Other operating income (2,121) -
Amortization of goodwill - 2,752 -100.0%
---------- ----------
Total operating expenses 103,296 101,687 1.6%
---------- ----------
Operating income 48,385 48,880 -1.0%
% of sales 16.4% 17.2% -0.8%
Interest 19,232 22,921 -16.1%
Interest rate swap
agreement expense 2,806 4,798 -41.5%
Amortization of deferred
financing expenses 3,332 3,416 -2.5%
---------- ----------
25,370 31,135 -18.5%
---------- ----------
Income before provision for
income taxes 23,015 17,745 29.7%
Income tax provision 9,440 7,265 29.9%
---------- ----------
Net income from continuing
operations 13,575 10,480 29.5%
Net (loss) income from
discontinued operations, net
of tax (1,742) 4,768 -136.5%
Extraordinary item, net of tax
benefit (2) (1,026) -
---------- ----------
Net income $ 10,807 $ 15,248 -29.1%
========== ==========
Basic and diluted earnings per
share: (3)&(4)
Net income per common share
from continuing operations $ 0.61 $ 0.47 29.4%
Net (loss) income per
common share from
discontinued operations $ (0.08) $ 0.22 -136.5%
Extraordinary item $ (0.05) $ -
---------- ----------
Net (loss) income per
common share $ 0.49 $ 0.69 -29.2%
========== ==========
Weighted average shares
outstanding-Basic 22,072,549 22,072,549
========== ==========
Weighted average shares
outstanding-Diluted 22,108,668 22,093,843
========== ==========
Diluted earnings per share
from continuing operations
excluding interest rate swap
agreement expense (3)&(4) $ 0.69 $ 0.60 15.0%
========== ==========
EBITDA from continuing
operations (5) $ 52,779 $ 58,148 -9.2%
========== ==========
HINES HORTICULTURE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
ASSETS September 30, December 31,
2002 2001 2001
---------- ---------- ----------
Current Assets:
Cash $ - $ - $ -
Accounts receivable, net 33,833 36,020 28,182
Inventories 157,789 152,739 164,675
Prepaid expenses and other current
assets 9,507 3,781 2,322
Assets of discontinued operations - 42,411 40,134
---------- ---------- ----------
Total current assets 201,129 234,951 235,313
---------- ---------- ----------
Fixed assets, net 139,619 150,269 142,387
Deferred financing expenses, net 7,999 9,264 8,317
Assets of discontinued operations - 85,004 95,029
Deferred income tax - 10,854 7,727
Goodwill 121,897 121,405 121,371
---------- ---------- ----------
Total assets $ 470,644 $ 611,747 $ 610,144
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,014 $ 14,194 $ 12,824
Accrued liabilities 11,674 7,688 8,450
Accrued payroll and benefits 10,678 9,772 7,091
Accrued interest 3,567 3,540 2,904
Long-term debt, current portion 10,584 31,760 43,159
Borrowings on revolving credit
facility 59,250 77,250 100,000
Liabilities of discontinued
operations - 24,941 37,097
Deferred income taxes 67,716 70,661 64,874
---------- ---------- ----------
Total current liabilities 176,483 239,806 276,399
---------- ---------- ----------
Long-term debt 171,660 225,831 209,639
Derivative liability 9,211 8,038 7,117
Deferred income taxes 13,354 - -
Liabilities of discontinued operations - 38,757 28,244
Shareholders' equity 99,936 99,315 88,745
---------- ---------- ----------
Total liabilities and equity $ 470,644 $ 611,747 $ 610,144
========== ========== ==========
HINES HORTICULTURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2002 and 2001 (Unaudited) and
Twelve Months Ended December 31, 2001
Nine Months Ended Year Ended
September 30, December 31,
2002 2001 2001
---------- ---------- ----------
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 10,807 $ 15,248 $ 3,425
Net loss (income) from discontinued
operations 1,742 (4,768) 2,268
Adjustments to reconcile net income
to net cash provided by operating
activities -
Amortization of deferred
financing costs 3,332 3,416 4,742
Depreciation, depletion and
amortization 6,515 9,268 12,436
Interest rate swap agreement
expenses 2,806 4,798 4,114
Gain on sale of assets (2,121) - -
Extraordinary item (net of tax) 1,026 - -
Deferred income taxes 9,042 7,265 4,508
---------- ---------- ----------
33,149 35,227 31,493
Change in working capital accounts
Accounts receivable (5,651) (9,266) (1,428)
Inventories 6,886 386 (11,550)
Prepaid expenses and other current
assets 1,029 (1,901) (442)
Accounts payable and accrued
liabilities 5,393 12,403 8,478
---------- ---------- ----------
Change in working capital accounts 7,657 1,622 (4,942)
---------- ---------- ----------
Net cash provided by
operating activities 40,806 36,849 26,551
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets (4,533) (15,575) (18,178)
Net cash (used in) provided by
discontinued operations (4,320) 2,280 (1,497)
Proceeds from sale of discontinued
operations 119,262 - -
Proceeds from sale of fixed assets 3,143 - -
Acquisitions, adjusted (1,426) (8,311) (9,211)
---------- ---------- ----------
Net cash provided by (used in)
investing activities 112,126 (21,606) (28,886)
---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings on
revolving line of credit (40,750) (2,250) 20,500
Repayments of long-term debt (107,982) (13,023) (18,195)
Deferred financing costs incurred (4,200) - -
Proceeds from stock sales notes
receivables - 30 30
---------- ---------- ----------
Net cash (used in) provided by
financing activities (152,932) (15,243) 2,335
---------- ---------- ----------
NET INCREASE IN CASH - - -
CASH, beginning of period - - -
---------- ---------- ----------
CASH, end of period $ - $ - $ -
========== ========== ==========
HINES HORTICULTURE, INC. (Footnotes to Preceding Financial Statements) General: (1) On March 27, 2002, the Company sold the assets of Sun Gro Horticulture, Inc. and the stock of Sun Gro Horticulture 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 Ltd. ("Sun Gro"), its growing media division, to the Sun Gro Horticulture Income Fund, a newly established Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. income fund. Accordingly, the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been restated to reflect the financial position, results of operations and cash flows of the Sun Gro business as discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: operations. Income Statement: (2) The Company received net proceeds of approximately $120 million from the sale of the Sun Gro business, which were used to pay down outstanding debt. The early extinguishment of debt resulted in an extraordinary loss related to the write-off of unamortized financing costs of $1.0 million, net of $0.7 million in related income taxes, during the three months ended March 31, 2002. (3) Basic earnings per common share are calculated by dividing income applicable to common shareholders by the average common shares outstanding during the period. (4) Diluted earnings per common share are calculated by dividing income applicable to common shareholders by the average common shares and dilutive common share equivalents outstanding during the period. (5) "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 " is defined as income from operations, plus depreciation, amortization and other non-cash items. EBITDA is not intended to represent cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses as defined by generally accepted accounting principles and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion