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| 8-K - USG CORPORATION 8-K - USG CORP | a50240566.htm |
Exhibit 99.1
USG Corporation Reports 2012 First Quarter Results
First Quarter 2012 vs. First Quarter 2011
Consolidated Business Highlights
- Sales increased 13 percent to $812 million
- Operating profit of $27 million compared to operating loss of $58 million
- Adjusted operating profit of $29 million compared to adjusted operating loss of $49 million
Business Unit Highlights
- U.S. Gypsum wallboard shipments totaled 1.16 BSF vs. 992 MMSF
- U.S. Gypsum average wallboard price of $130.43 per thousand square feet vs. $109.15
- Worldwide Ceilings operating profit increased 12 percent to $29 million
- L&W same store net sales increased 13 percent
- SHEETROCK® Brand UltraLight Panels accounted for 41 percent of all USG wallboard shipments in the United States
CHICAGO--(BUSINESS WIRE)--April 17, 2012--USG Corporation (NYSE:USG), a leading building products company, today reported first quarter 2012 net sales of $812 million, up 13 percent from first quarter 2011 net sales of $721 million. USG’s first quarter operating profit was $27 million compared to a $58 million operating loss in the first quarter of 2011. The first quarter 2012 net loss after-tax was $27 million or $0.26 per share. This result compares to a $105 million net loss in the first quarter of 2011 or $1.01 per share.
“Despite continuing low demand, our emphasis on achieving operating profit is succeeding, and continues to be a top priority,” said James S. Metcalf, Chairman, President and CEO. “Our focus on our customers, innovation and growing our adjacent businesses contributed to our first quarter results. All units showed improved results, supported by a modest increase in U.S. wallboard demand and solid performance across our product lines including ceilings, substrates and joint compounds. Of particular note is the market enthusiasm over our expanding line of SHEETROCK® Brand UltraLight Panels products, which now include both SHEETROCK® Brand UltraLight Panels FIRECODE® 30 and SHEETROCK® Brand UltraLight Panels FIRECODE® X, as well as our SHEETROCK® Brand UltraLightweight All Purpose Joint Compound.”
The corporation’s adjusted operating profit was $29 million in the first quarter of 2012, which compares to an adjusted operating loss of $49 million in the first quarter of 2011. The adjusted operating profit for the first quarter of 2012 excludes $2 million of restructuring and asset impairment charges. The adjusted operating loss for the first quarter of 2011 excludes $9 million of restructuring and asset impairment charges.
“Although demand in our core markets still remains near historical lows,” Metcalf said, “we are confident our strategy will continue to move us toward positive net earnings.”
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 website, www.usg.com, in the Investor Relations section. The dial-in number for the conference call is 1-800-315-2944 (1-847-413-2929 for international callers), and the pass code is 32196653. After the live webcast, a replay of the webcast will be available on the USG website. In addition, a telephonic replay of the call will be available until Friday, April 27, 2012. The replay dial-in number is 1-888-843-7419 (1-630-652-3042 for international callers), and the pass code is 32196653.
USG Corporation is a manufacturer and distributor of high-performance building systems through its United States Gypsum Company, USG Interiors, LLC, 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 branch locations efficiently stock and deliver building materials nationwide. For additional information, visit the USG website 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 for us and the industry; changes in laws or regulations, including environmental and safety regulations; the outcome in contested litigation matters; our ability to complete surplus asset sales and other divestitures; 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, | ||||||||
| 2012 | 2011 | |||||||
| Net sales | $ | 812 | $ | 721 | ||||
| Cost of products sold | 702 | 685 | ||||||
| Gross profit | 110 | 36 | ||||||
| Selling and administrative expenses | 81 | 85 | ||||||
| Restructuring and long-lived asset | ||||||||
| impairment charges | 2 | 9 | ||||||
| Operating profit (loss) | 27 | (58 | ) | |||||
| Interest expense | 52 | 52 | ||||||
| Interest income | (1 | ) | (2 | ) | ||||
| Other expense, net | 1 | - | ||||||
| Loss before income taxes | (25 | ) | (108 | ) | ||||
| Income tax expense (benefit) | 2 | (3 | ) | |||||
| Net loss | $ | (27 | ) | $ | (105 | ) | ||
| Basic loss per common share | $ | (0.26 | ) | $ | (1.01 | ) | ||
| Diluted loss per common share | (0.26 | ) | (1.01 | ) | ||||
| Average common shares | 105,718,156 | 103,021,407 | ||||||
| Average diluted common shares | 105,718,156 | 103,021,407 | ||||||
| Other Information: | ||||||||
| Depreciation, depletion and amortization | $ | 40 | $ | 41 | ||||
| Capital expenditures | 14 | 13 | ||||||
| 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, | ||||||||
| 2012 | 2011 | |||||||
|
Net Sales: |
||||||||
| North American Gypsum: | ||||||||
| U.S. Gypsum Company | $ | 381 | $ | 318 | ||||
| CGC Inc. (gypsum) | 84 | 76 | ||||||
| USG Mexico S.A. de C.V. | 40 | 41 | ||||||
| Other * | 8 | 7 | ||||||
| Eliminations | (27 | ) | (26 | ) | ||||
| Total | 486 | 416 | ||||||
| Building Products Distribution: | ||||||||
| L&W Supply Corporation | 270 | 243 | ||||||
| Worldwide Ceilings: | ||||||||
| USG Interiors, Inc. | 119 | 110 | ||||||
| USG International | 59 | 61 | ||||||
| CGC Inc. (ceilings) | 18 | 19 | ||||||
| Eliminations | (13 | ) | (13 | ) | ||||
| Total | 183 | 177 | ||||||
| Eliminations | (127 | ) | (115 | ) | ||||
| Total net sales | $ | 812 | $ | 721 | ||||
|
Operating Profit (Loss): |
||||||||
| North American Gypsum: | ||||||||
| U.S. Gypsum Company | $ | 29 | $ | (29 | ) | |||
| CGC Inc. (gypsum) | 3 | 3 | ||||||
| USG Mexico S.A. de C.V. | 5 | 5 | ||||||
| Other * | (5 | ) | (8 | ) | ||||
| Total | 32 | (29 | ) | |||||
| Building Products Distribution: | ||||||||
| L&W Supply Corporation | (6 | ) | (22 | ) | ||||
| Worldwide Ceilings: | ||||||||
| USG Interiors, Inc. | 23 | 18 | ||||||
| USG International | 3 | 4 | ||||||
| CGC Inc. (ceilings) | 3 | 4 | ||||||
| Total | 29 | 26 | ||||||
| Corporate | (22 | ) | (29 | ) | ||||
| Eliminations | (6 | ) | (4 | ) | ||||
| Total operating loss | $ | 27 | $ | (58 | ) | |||
| * Includes a shipping company in Bermuda and a mining operation in Nova Scotia, Canada, that was | ||||||||
| closed in the fourth quarter of 2011. | ||||||||
| USG CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| As of | As of | |||||||
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 470 | $ | 365 | ||||
| Short-term marketable securities | 73 | 164 | ||||||
| Restricted cash | 1 | 1 | ||||||
| Receivables (net of reserves - $18 and $18) | 396 | 324 | ||||||
| Inventories | 313 | 305 | ||||||
| Income taxes receivable | 9 | 8 | ||||||
| Deferred income taxes | 4 | 4 | ||||||
| Other current assets | 37 | 55 | ||||||
| Total current assets | 1,303 | 1,226 | ||||||
| Long-term marketable securities | 65 | 122 | ||||||
| Property, plant and equipment (net of accumulated | ||||||||
| depreciation and depletion - $1,684 and $1,637) | 2,107 | 2,117 | ||||||
| Deferred income taxes | 25 | 25 | ||||||
| Other assets | 233 | 229 | ||||||
| Total Assets | $ | 3,733 | $ | 3,719 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 249 | $ | 233 | ||||
| Accrued expenses | 261 | 266 | ||||||
| Current portion of long-term debt | 7 | 7 | ||||||
| Deferred income taxes | 12 | 12 | ||||||
| Income taxes payable | 4 | 7 | ||||||
| Total current liabilities | 533 | 525 | ||||||
| Long-term debt | 2,296 | 2,297 | ||||||
| Deferred income taxes | 6 | 6 | ||||||
| Other liabilities | 744 | 735 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 10 | 10 | ||||||
| Treasury stock | - | - | ||||||
| Capital received in excess of par value | 2,568 | 2,561 | ||||||
| Accumulated other comprehensive loss | (156 | ) | (174 | ) | ||||
| Retained earnings (deficit) | (2,268 | ) | (2,241 | ) | ||||
| Total stockholders' equity | 154 | 156 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 3,733 | $ | 3,719 | ||||
| Other Information: | ||||||||
| Total cash and cash equivalents and marketable securities | 608 | 651 | ||||||
| Borrowing availability from lines of credit | 219 | 183 | ||||||
| Total Liquidity | $ | 827 | $ | 834 | ||||
| USG CORPORATION | ||||||||
| RECONCILIATION of ADJUSTED OPERATING LOSS to REPORTED GAAP OPERATING LOSS | ||||||||
| (dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| Three Months | ||||||||
| ended March 31 | ||||||||
| 2012 | 2011 | |||||||
| Adjusted Operating Profit (Loss): | ||||||||
| North American Gypsum | $ | 34 | $ | (22 | ) | |||
| Building Products Distribution | (6 | ) | (21 | ) | ||||
| Worldwide Ceilings | 29 | 26 | ||||||
| Corporate | (22 | ) | (28 | ) | ||||
| Eliminations | (6 | ) | (4 | ) | ||||
| Total | 29 | (49 | ) | |||||
| Restructuring and Long-Lived | ||||||||
| Asset Impairment Charges: | ||||||||
| North American Gypsum | 2 | 7 | ||||||
| Building Products Distribution | - | 1 | ||||||
| Worldwide Ceilings | - | - | ||||||
| Corporate | - | 1 | ||||||
| Total | 2 | 9 | ||||||
| Reported GAAP Operating Profit (Loss): | ||||||||
| North American Gypsum | 32 | (29 | ) | |||||
| Building Products Distribution | (6 | ) | (22 | ) | ||||
| Worldwide Ceilings | 29 | 26 | ||||||
| Corporate | (22 | ) | (29 | ) | ||||
| Eliminations | (6 | ) | (4 | ) | ||||
| Total | 27 | (58 | ) | |||||
| 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 | ||||||||||
| 2012 | $130.43 | 1.16 | ||||||||||||||||||
| 2011 | $109.15 | 0.99 | $111.55 | 0.99 | $111.66 | 1.05 | $112.59 | 1.09 | $111.27 | 4.11 | ||||||||||
| 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: 312/436-6098