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| 8-K - USG CORPORATION 8-K - USG CORP | a6690827.htm |
Exhibit 99.1
USG Corporation Reports 2011 First Quarter Results
CHICAGO--(BUSINESS WIRE)--April 20, 2011--USG Corporation (NYSE:USG):
First Quarter 2011 vs. First Quarter 2010
Consolidated Business Highlights
- Sales increased 1%
- Operating loss of $58 million compared to $82 million
- Adjusted operating loss of $49 million compared to $70 million
Business Unit Highlights
- U.S. Gypsum wallboard shipments totaled 992 MMSF vs. 1.15 BSF
- U.S. Gypsum average wallboard price of $109.15 per thousand square feet vs. $106.58
- Worldwide Ceilings operating profit increased $8 million
- L&W same-store net sales decreased 1%
USG Corporation (NYSE:USG), a leading building products company, today reported first quarter 2011 net sales of $721 million, an operating loss of $58 million and a net loss of $105 million, or $1.01 per diluted share based on 103 million average diluted shares outstanding. In last year’s first quarter, the operating loss was $82 million and the net loss was $110 million, or $1.10 per diluted share based on 99.4 million average diluted shares.
“As expected, we experienced generally weak demand in our domestic markets during the quarter,” said James Metcalf, President and CEO. “Accordingly, we continue to focus on our operating initiatives to drive improvements in our results.
“We are seeing signs of stabilization in U.S. commercial construction and positive trends in the repair and remodel segment, but the new residential construction market remains weak,” Metcalf continued. “The long term fundamentals that drive our business remain very solid. As demand improves we will benefit from the operating leverage inherent in both our manufacturing and distribution businesses.”
The corporation’s adjusted operating loss was $49 million in the first quarter of 2011, which compares to an adjusted operating loss of $70 million in the first quarter of 2010. The adjusted operating loss for the first quarter of 2011 excludes $9 million of restructuring and long-lived asset impairment charges, while the adjusted operating loss for the first quarter of 2010 excludes $12 million of restructuring and long-lived asset impairment charges.
A conference call is being held today at 10:00 A.M. Central Time during which USG senior management will discuss the corporation’s operating results. The conference call will be webcast on the USG Web site, www.usg.com, in the Investor Relations section. The dial-in number for the conference call is 1-866-352-2116 for participants in the United States (1-630-691-2782 for callers from other countries), and the pass code is 29486764. After the live webcast, a replay of the webcast will be available on the USG Web site. In addition, a telephonic replay of the call will be available until Friday, April 29, 2011. The replay dial-in number is 1-888-843-7419 (1-630-652-3042 for international callers), and the pass code is 29486764.
USG Corporation is a manufacturer and distributor of high-performance building systems through its United States Gypsum Company, USG Interiors, Inc., L&W Supply Corporation and other subsidiaries. Headquartered in Chicago, USG’s worldwide operations serve the residential and non-residential construction markets, repair and remodel construction markets, and industrial processes. USG’s wall, ceiling, flooring and roofing products provide leading-edge building solutions for customers, while L&W Supply center locations efficiently stock and deliver building materials nationwide. For additional information, visit the USG Web site at www.usg.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to management’s expectations about future conditions. Actual business, market or other conditions may differ from management’s expectations and, accordingly, may affect our sales and profitability or other results and liquidity. Actual results may differ due to various other factors, including: economic conditions, such as the levels of new home and other construction activity, employment levels, the availability of mortgage, construction and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates and consumer confidence; capital markets conditions and the availability of borrowings under our credit agreement or other financings; competitive conditions, such as price, service and product competition; shortages in raw materials; changes in raw material, energy, transportation and employee benefit costs; the loss of one or more major customers and our customers’ ability to meet their financial obligations to us; capacity utilization rates; changes in laws or regulations, including environmental and safety regulations; the outcome in contested litigation matters; the effects of acts of terrorism or war upon domestic and international economies and financial markets; and acts of God. We assume no obligation to update any forward-looking information contained in this press release.
| USG CORPORATION | ||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| (dollars in millions except per share data) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Net sales | $ | 721 | $ | 716 | ||||
| Cost of products sold | 685 | 702 | ||||||
| Gross profit | 36 | 14 | ||||||
| Selling and administrative expenses | 85 | 84 | ||||||
| Restructuring and long-lived asset | ||||||||
| impairment charges | 9 | 12 | ||||||
| Operating loss | (58 | ) | (82 | ) | ||||
| Interest expense | 52 | 45 | ||||||
| Interest income | (2 | ) | (1 | ) | ||||
| Other (income) expense, net | - | 1 | ||||||
| Loss before income taxes | (108 | ) | (127 | ) | ||||
| Income tax benefit | (3 | ) | (17 | ) | ||||
| Net loss | $ | (105 | ) | $ | (110 | ) | ||
| Basic loss per common share | $ | (1.01 | ) | $ | (1.10 | ) | ||
| Diluted loss per common share | (1.01 | ) | (1.10 | ) | ||||
| Average common shares | 103,021,407 | 99,385,442 | ||||||
| Average diluted common shares | 103,021,407 | 99,385,442 | ||||||
| Other Information: | ||||||||
| Depreciation, depletion and amortization | $ | 41 | $ | 45 | ||||
| Capital expenditures | 13 | 6 | ||||||
|
Average common shares and average diluted common shares outstanding are calculated in accordance with Accounting Standards Codification 260, "Earnings Per Share." |
||||||||
| USG CORPORATION | ||||||||
| CORE BUSINESS RESULTS | ||||||||
| (dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| ended March 31, | ||||||||
| 2011 | 2010 | |||||||
|
Net Sales: |
||||||||
| North American Gypsum: | ||||||||
| U.S. Gypsum Company | $ | 318 | $ | 332 | ||||
| CGC Inc. (gypsum) | 76 | 76 | ||||||
| USG Mexico S.A. de C.V. | 41 | 36 | ||||||
| Other * | 7 | 6 | ||||||
| Eliminations | (26 | ) | (26 | ) | ||||
| Total | 416 | 424 | ||||||
| Building Products Distribution: | ||||||||
| L&W Supply Corporation | 243 | 248 | ||||||
| Worldwide Ceilings: | ||||||||
| USG Interiors, Inc. | 110 | 103 | ||||||
| USG International | 61 | 57 | ||||||
| CGC Inc. (ceilings) | 19 | 17 | ||||||
| Eliminations | (13 | ) | (12 | ) | ||||
| Total | 177 | 165 | ||||||
| Eliminations | (115 | ) | (121 | ) | ||||
| Total net sales | $ | 721 | $ | 716 | ||||
|
Operating Profit (Loss): |
||||||||
| North American Gypsum: | ||||||||
| U.S. Gypsum Company | $ | (29 | ) | $ | (37 | ) | ||
| CGC Inc. (gypsum) | 3 | 7 | ||||||
| USG Mexico S.A. de C.V. | 5 | 3 | ||||||
| Other * | (8 | ) | (8 | ) | ||||
| Total | (29 | ) | (35 | ) | ||||
| Building Products Distribution: | ||||||||
| L&W Supply Corporation | (22 | ) | (39 | ) | ||||
| Worldwide Ceilings: | ||||||||
| USG Interiors, Inc. | 18 | 12 | ||||||
| USG International | 4 | 3 | ||||||
| CGC Inc. (ceilings) | 4 | 3 | ||||||
| Total | 26 | 18 | ||||||
| Corporate | (29 | ) | (23 | ) | ||||
| Eliminations | (4 | ) | (3 | ) | ||||
| Total operating loss | $ | (58 | ) | $ | (82 | ) | ||
| *Includes a shipping company in Bermuda and a mining operation in Nova Scotia, Canada. | ||||||||
| USG CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| As of | As of | |||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 464 | $ | 629 | ||||
| Short-term marketable securities | 145 | 128 | ||||||
| Restricted cash | 4 | 4 | ||||||
| Receivables (net of reserves - $18 and $17) | 396 | 327 | ||||||
| Inventories | 306 | 290 | ||||||
| Income taxes receivable | 3 | 3 | ||||||
| Deferred income taxes | 6 | 6 | ||||||
| Other current assets | 46 | 50 | ||||||
| Total current assets | 1,370 | 1,437 | ||||||
| Long-term marketable securities | 160 | 150 | ||||||
| Property, plant and equipment (net of accumulated | ||||||||
| depreciation and depletion - $1,581 and $1,546) | 2,243 | 2,266 | ||||||
| Other assets | 239 | 234 | ||||||
| Total Assets | $ | 4,012 | $ | 4,087 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 240 | $ | 218 | ||||
| Accrued expenses | 284 | 294 | ||||||
| Current portion of long-term debt | 7 | 7 | ||||||
| Income taxes payable | 7 | 10 | ||||||
| Total current liabilities | 538 | 529 | ||||||
| Long-term debt | 2,300 | 2,301 | ||||||
| Deferred income taxes | 6 | 7 | ||||||
| Other liabilities | 624 | 631 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 10 | 10 | ||||||
| Treasury stock | (39 | ) | (55 | ) | ||||
| Capital received in excess of par value | 2,562 | 2,565 | ||||||
| Accumulated other comprehensive loss | (33 | ) | (50 | ) | ||||
| Retained earnings (deficit) | (1,956 | ) | (1,851 | ) | ||||
| Total stockholders' equity | 544 | 619 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 4,012 | $ | 4,087 | ||||
| Other Information: | ||||||||
| Total cash and cash equivalents and marketable securities | $ | 769 | $ | 907 | ||||
| Borrowing availability from lines of credit | 189 | 156 | ||||||
| Total Liquidity | $ | 958 | $ | 1,063 | ||||
| USG CORPORATION | ||||||||
| RECONCILIATION of ADJUSTED OPERATING LOSS to REPORTED GAAP OPERATING LOSS | ||||||||
| (dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| ended March 31 | ||||||||
| 2011 | 2010 | |||||||
| Adjusted Operating Profit (Loss): | ||||||||
| North American Gypsum | $ | (22 | ) | $ | (31 | ) | ||
| Building Products Distribution | (21 | ) | (31 | ) | ||||
| Worldwide Ceilings | 26 | 18 | ||||||
| Corporate | (28 | ) | (23 | ) | ||||
| Eliminations | (4 | ) | (3 | ) | ||||
| Total | (49 | ) | (70 | ) | ||||
| Restructuring and Long-Lived | ||||||||
| Asset Impairment Charges: | ||||||||
| North American Gypsum | 7 | 4 | ||||||
| Building Products Distribution | 1 | 8 | ||||||
| Worldwide Ceilings | - | - | ||||||
| Corporate | 1 | - | ||||||
| Total | 9 | 12 | ||||||
| Reported GAAP Operating Profit (Loss): | ||||||||
| North American Gypsum | (29 | ) | (35 | ) | ||||
| Building Products Distribution | (22 | ) | (39 | ) | ||||
| Worldwide Ceilings | 26 | 18 | ||||||
| Corporate | (29 | ) | (23 | ) | ||||
| Eliminations | (4 | ) | (3 | ) | ||||
| Total | (58 | ) | (82 | ) | ||||
| References to Adjusted Operating Loss are non-GAAP measures. Management believes this information provides investors with a more useful comparison of the corporation's ongoing business performance. | ||||||||
| UNITED STATES GYPSUM COMPANY | |||||||||||||||||||||
| WALLBOARD REALIZED PRICE & SHIPMENTS | |||||||||||||||||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Full Year | |||||||||||||||||
| Year | Price | Volume | Price | Volume | Price | Volume | Price | Volume | Price | Volume | |||||||||||
| 2011 | $109.15 | 0.99 | |||||||||||||||||||
| 2010 | $106.58 | 1.15 | $114.17 | 1.07 | $114.45 | 1.03 | $111.95 | 0.95 | $111.66 | 4.20 | |||||||||||
| Wallboard price reflects amount per one thousand square feet. | |||||||||||||||||||||
| Volume expressed in billions of square feet. | |||||||||||||||||||||
CONTACT:
USG Corporation
Media Inquiries: 312/436-4356
Investor
Relations: 312/436-4110