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8-K - BUCKEYE TECHNOLOGIES INC. 8-K - BUCKEYE TECHNOLOGIES INC | a50251467.htm |
Exhibit 99.1
Buckeye’s Third Quarter FY 2012 Results
Adjusted 3Q EPS* of $0.67 compared to $0.71 in 3Q-FY11
Includes $0.04 impact from February power outage at Florida mill
3Q Net Sales down 9% due to plant closure, divestiture and lower volume
Gross Margin of 24.3% - highest level in more than 11 years
Quarterly Dividend increased by 14% to $0.08 per share
MEMPHIS, Tenn.--(BUSINESS WIRE)--April 24, 2012--Buckeye Technologies Inc. (NYSE:BKI) today announced third quarter adjusted net income* of $27.0 million or $0.67 per share, which excludes after-tax restructuring and asset impairment charges of $0.8 million, or $0.02 per share, related to the closure of the cotton linter pulp production line in Americana, Brazil and sale of its converting business in King, North Carolina, and after-tax interest expense of $0.4 million or $0.01 per share related to cellulosic biofuel credits. Adjusted net income* was down 7% as compared to the prior year period’s $29.0 million, or $0.71 per share, which excluded after tax costs of $0.3 million, or $0.01 per share, primarily related to accrued interest associated with cellulosic biofuel credits.
Net sales of $217 million were down $21 million or 9% versus last year’s third quarter sales of $238 million. About $11 million of the reduction in sales was related to the closure or divestiture of under-performing and non-core assets. Nonwovens sales were down $7 million or 11% year over year excluding the impact of the January 31st divestiture of the Merfin Systems converting business. The primary driver was lower shipment volume in North America. The $0.04 reduction in adjusted EPS* compared to the prior year period was the result of the power outage at the Foley specialty wood fibers mill, which the Company announced in late February. The impact of the King divestiture and Americana plant closure on adjusted EPS compared to the year ago quarter was insignificant. An overall net increase in selling prices combined with lower direct manufacturing costs mostly offset the effect of reduced shipment volume and a less favorable mix.
Comparing the third quarter to the second quarter of fiscal 2012, sales were down $10 million or 4%. About $9 million of this reduction in sales was related to business divestitures and plant closures. Nonwovens sales were down about $1 million due to a weaker Euro and reduced pricing. While sales volume in Europe was up compared to a seasonally weak second quarter, nonwovens sales volume in North America was down by an offsetting amount. Adjusted operating income* was down $1.0 million due to the negative impact of the February power outage at the Foley mill ($2.4 million net of expected insurance proceeds). The January 1st price increase on our specialty wood pulp grades more than offset lower fluff pulp pricing and a less favorable specialty fibers shipment mix. Costs were relatively stable between the second and third quarters of fiscal 2012. The impact of divestitures and plant closures on operating income between these two quarters was positive $0.3 million. Adjusted EPS* of $0.67 was down $0.02 compared to $0.69 in the second quarter due to the $0.04 impact of the February power outage at the Foley mill.
Chairman and Chief Executive Officer John B. Crowe said, “This was a very busy and productive quarter for Buckeye. We completed the energy project and the ground-breaking for the Specialty Expansion Project at our Florida mill; we closed our cotton linter pulp facility in Brazil, and we sold our converting business in King, N.C. All of these activities will improve Buckeye’s margins and return on invested capital. It was also a challenging quarter due to the power failure in mid-February and subsequent downtime at our Florida facility. This caused our financial performance to come in below the expectations that we shared at our earnings call in January.
“We continue to focus on generating both cash flow and returns on investment above our cost of capital, while taking a balanced approach to the allocation of capital. During the quarter, we used our strong cash flow from operations plus an additional $6 million from the sale of our King converting business to fund $22 million in capital expenditures (up $8 million from the previous quarter), pay down debt by $17 million, and pay a quarterly dividend of $3 million. Yesterday, the Board of Directors voted to raise our quarterly dividend to 8 cents per share, and earlier this month, we repurchased another 100,000 shares of our stock for $3.3 million. With our recent moves to address under-performing and non-core assets, we are redirecting the cash and management focus into improving our Nonwovens performance and accelerating growth opportunities like the Foley Specialty Expansion Project. We expect our fiscal year 2012 will be another year of record results helped by our various initiatives.”
Buckeye has scheduled a conference call for Wednesday morning, April 25, at 11:00 a.m. ET to discuss third quarter performance. Persons interested in listening by telephone may dial in at (800) 344-6491 within the United States. International callers should dial (785) 830-7988. Supplemental material for the call will be available on the Company’s website at www.bkitech.com or at www.streetevents.com.
Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany and Canada. Its products are sold worldwide to makers of consumer and industrial goods.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” generally can be identified by the use of forward-looking terminology such as “assumptions,” “target,” “guidance,” “outlook,” “plans,” “projection,” “may,” “will,” “would,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” or “continue (or the negative or other derivatives of each of these terms or similar terminology). The “forward-looking statements” include, without limitation, statements regarding the economic outlook for Buckeye and the demand for its products, the results and timing of Buckeye’s strategic investments and growth opportunities and expected levels of cash flow and debt reduction. These statements are based on management’s estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in Buckeye’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.
Note Regarding Non-GAAP Financial Measures
*This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). The non-GAAP measures presented are “adjusted operating income”, “adjusted net income”, “adjusted earnings per share”, “free cash flow” and are equal to net income, pre-tax income, operating income and earnings per share excluding the after-tax effects of alternative fuel mixture credits (AFMC) and cellulosic biofuel credits (CBC), goodwill and long-term asset impairment cost, and restructuring cost.
3rd Quarter |
2nd Quarter | ||||||||||||||
($ in Millions) | 2012 | 2011 | 2012 | ||||||||||||
Operating income |
|||||||||||||||
Operating income in accordance with GAAP | 40.3 | 44.0 | (10.5 | ) | |||||||||||
Special items: | |||||||||||||||
Restructuring costs | 1.2 | (0.1 | ) | --- | |||||||||||
Asset and Goodwill impairment | 0.1 | --- | 53.1 | ||||||||||||
Adjusted operating income | 41.6 | 43.9 | 42.6 | ||||||||||||
Net income |
|||||||||||||||
Net income in accordance with GAAP | 25.8 | 28.7 |
(5.4 |
) | |||||||||||
Special items, after-tax: | |||||||||||||||
Restructuring costs | 0.7 |
(0.1 |
) | --- | |||||||||||
AFMC / CBC | 0.4 | 0.4 | 3.6 | ||||||||||||
Asset and Goodwill Impairment | 0.1 | --- | 29.7 | ||||||||||||
Adjusted net income | 27.0 | 29.0 | 27.9 | ||||||||||||
Earnings per share (EPS) |
|||||||||||||||
EPS in accordance with GAAP | $ | 0.64 | $ | 0.70 | ($0.14 | ) | |||||||||
Special items, after-tax, per share: | |||||||||||||||
Restructuring costs | 0.02 | --- | --- | ||||||||||||
AFMC / CBC | 0.01 | 0.01 | 0.09 | ||||||||||||
Asset and Goodwill Impairment | --- | --- | 0.74 | ||||||||||||
Adjusted EPS | $ | 0.67 | $ | 0.71 | $ | 0.69 | |||||||||
Free Cash Flow |
|||||||||||||||
Net cash provided by operating activities | 31.0 | 38.1 | 24.9 | ||||||||||||
Net cash used in investing activities |
(16.3 |
) |
(9.8 |
) |
(13.7 |
) | |||||||||
Free Cash Flow | 14.7 | 28.3 | 11.2 | ||||||||||||
BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | March 31, 2012 | March 31, 2011 | |||||||||||||||||||||
Net sales | $ | 217,065 | $ | 227,097 | $ | 237,782 | $ | 684,229 | $ | 649,373 | |||||||||||||||
Cost of goods sold | 164,246 | 172,662 | 180,318 | 520,123 | 511,170 | ||||||||||||||||||||
Gross margin | 52,819 | 54,435 | 57,464 | 164,106 | 138,203 | ||||||||||||||||||||
Gross margin as a percentage of sales | 24.3 | % | 24.0 | % | 24.2 | % | 24.0 | % | 21.3 | % | |||||||||||||||
Selling, research and administrative expenses | 10,760 | 11,348 | 13,102 | 34,447 | 36,609 | ||||||||||||||||||||
Amortization of intangibles and other | 515 | 500 | 488 | 1,511 | 1,453 | ||||||||||||||||||||
Asset impairment loss | 92 | 50,711 | - | 50,803 | - | ||||||||||||||||||||
Goodwill impairment loss | - | 2,425 | - | 2,425 | - | ||||||||||||||||||||
Restructuring costs | 1,137 | - | (125 | ) | 1,137 | 997 | |||||||||||||||||||
Other operating income | (32 | ) | - | (17 | ) | (32 | ) | (63 | ) | ||||||||||||||||
Operating income (loss) | 40,347 | (10,549 | ) | 44,016 | 73,815 | 99,207 | |||||||||||||||||||
Net interest expense and amortization of debt costs | (1,101 | ) | (898 | ) | (1,642 | ) | (5,310 | ) | (6,956 | ) | |||||||||||||||
Early extinguishment of debt | - | - | - | - | (3,649 | ) | |||||||||||||||||||
Foreign exchange and other | (349 | ) | (19 | ) | (892 | ) | 134 | (1,705 | ) | ||||||||||||||||
Income (loss) before income taxes | 38,897 | (11,466 | ) | 41,482 | 68,639 | 86,897 | |||||||||||||||||||
Income tax expense (benefit) | 13,052 | (6,027 | ) | 12,789 | 7,126 | (23,274 | ) | ||||||||||||||||||
Net income (loss) | $ | 25,845 | $ | (5,439 | ) | $ | 28,693 | $ | 61,513 | $ | 110,171 | ||||||||||||||
Computation of diluted earnings per share under the two-class method: | |||||||||||||||||||||||||
Net income (loss) attributable to shareholders | $ | 25,845 | $ | (5,439 | ) | $ | 28,693 | $ | 61,513 | $ | 110,171 | ||||||||||||||
Less: Distributed and undistributed income allocated to participating securities (nonvested stock) |
(371 | ) | - | (522 | ) | (891 | ) | (2,015 | ) | ||||||||||||||||
Distributed and undistributed income available to shareholders |
$ | 25,474 | $ | (5,439 | ) | $ | 28,171 | $ | 60,622 | $ | 108,156 | ||||||||||||||
Diluted weighted average shares outstanding | 39,816 | 39,260 | 40,195 | 39,791 | 39,965 | ||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.64 | $ | (0.14 | ) | $ | 0.70 | $ | 1.52 | $ | 2.71 | ||||||||||||||
BUCKEYE TECHNOLOGIES INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In thousands) | ||||||||||||
March 31 | December 31 | June 30 | ||||||||||
2012 | 2011 | 2011 | ||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 37,167 | $ | 35,998 | $ | 30,494 | ||||||
Accounts receivable, net | 130,803 | 136,571 | 140,582 | |||||||||
Inventories | 111,129 | 106,756 | 91,024 | |||||||||
Deferred income taxes and other | 45,828 | 14,328 | 12,216 | |||||||||
Total current assets | 324,927 | 293,653 | 274,316 | |||||||||
Property, plant and equipment, net | 481,474 | 476,020 | 530,468 | |||||||||
Goodwill | - | - | 2,425 | |||||||||
Deferred income taxes | 22,004 | 48,670 | 32,741 | |||||||||
Intellectual property and other, net | 13,713 | 14,138 | 29,901 | |||||||||
Total assets | $ | 842,118 | $ | 832,481 | $ | 869,851 | ||||||
Liabilities and stockholders' equity | ||||||||||||
Current liabilities: | ||||||||||||
Trade accounts payable | $ | 34,148 | $ | 32,846 | $ | 41,437 | ||||||
Accrued expenses | 49,161 | 40,323 | 71,722 | |||||||||
Other current liabilities | 311 | 863 | - | |||||||||
Total current liabilities | 83,620 | 74,032 | 113,159 | |||||||||
Long-term debt | 70,139 | 86,840 | 96,921 | |||||||||
Deferred income taxes | 5,503 | 5,531 | 7,968 | |||||||||
Other liabilities | 72,193 | 85,486 | 72,506 | |||||||||
Stockholders' equity | 610,663 | 580,592 | 579,297 | |||||||||
Total liabilities and stockholders' equity | $ | 842,118 | $ | 832,481 | $ | 869,851 | ||||||
BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | March 31, 2012 | March 31, 2011 | |||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||||||
Net income (loss) | $ | 25,845 | $ | (5,439 | ) | $ | 28,693 | $ | 61,513 | $ | 110,171 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||||||||||
Asset impairment loss | 92 | 50,711 | - | 50,803 | - | ||||||||||||||||||||
Depreciation | 12,228 | 12,791 | 12,778 | 38,045 | 36,884 | ||||||||||||||||||||
Amortization | 670 | 655 | 643 | 1,976 | 1,961 | ||||||||||||||||||||
Loss on early extinguishment of debt | - | - | - | - | 3,649 | ||||||||||||||||||||
Loss on goodwill impairment | - | 2,425 | - | 2,425 | - | ||||||||||||||||||||
Deferred income taxes | 434 | (2,509 | ) | (15,119 | ) | (15,707 | ) | (80,974 | ) | ||||||||||||||||
Noncurrent AFMC refund payable | - | (1,567 | ) | - | 13,895 | 41,144 | |||||||||||||||||||
Loss on disposal of equipment | 33 | 483 | 99 | 799 | 910 | ||||||||||||||||||||
Insurance proceeds applied to capital investments | - | - | - | - | (161 | ) | |||||||||||||||||||
Provision for bad debts | (698 | ) | 49 | (162 | ) | (94 | ) | (74 | ) | ||||||||||||||||
Excess tax benefit from stock based compensation | (1,142 | ) | (788 | ) | (383 | ) | (2,695 | ) | (828 | ) | |||||||||||||||
Stock-based compensation expense | 1,166 | 1,245 | 1,235 | 3,377 | 3,370 | ||||||||||||||||||||
Other | 110 | (244 | ) | 114 | (246 | ) | 70 | ||||||||||||||||||
Change in operating assets and liabilities | - | ||||||||||||||||||||||||
Accounts receivable | 4,694 | 1,999 | (20,093 | ) | 5,231 | (13,631 | ) | ||||||||||||||||||
Income tax receivable | (6 | ) | - | 15,129 | (6 | ) | 66,896 | ||||||||||||||||||
Inventories | (4,039 | ) | (6,346 | ) | (3,900 | ) | (22,832 | ) | (20,714 | ) | |||||||||||||||
Other assets | 2,880 | (3,247 | ) | (1,738 | ) | (8 | ) | 91 | |||||||||||||||||
Accounts payable and other liabilities | (11,267 | ) | (25,288 | ) | 20,766 | (52,082 | ) | (4,799 | ) | ||||||||||||||||
Net cash provided by operating activities | 31,000 | 24,930 | 38,062 | 84,394 | 143,965 | ||||||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||
Purchases of property, plant & equipment | (21,907 | ) | (13,586 | ) | (9,696 | ) | (46,206 | ) | (41,132 | ) | |||||||||||||||
Proceeds from sale of assets | 5,686 | - | - | 5,686 | - | ||||||||||||||||||||
Proceeds from insurance settlement related to capital investments |
- | - | - | - | 161 | ||||||||||||||||||||
Other | (238 | ) | (75 | ) | (138 | ) | (364 | ) | (345 | ) | |||||||||||||||
Net cash used in investing activities | (16,459 | ) | (13,661 | ) | (9,834 | ) | (40,884 | ) | (41,316 | ) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||
Net borrowings (payments) under line of credit | (16,701 | ) | (3,511 | ) | (27,456 | ) | (26,782 | ) | 39,040 | ||||||||||||||||
Payments on long term debt | - | - | - | - | (140,000 | ) | |||||||||||||||||||
Payments for debt issuance costs | - | - | - | - | (2,586 | ) | |||||||||||||||||||
Payments related to early extinguishment of debt | - | - | - | - | (1,984 | ) | |||||||||||||||||||
Excess tax benefit from stock based compensation | 1,142 | 788 | 383 | 2,695 | 828 | ||||||||||||||||||||
Purchase of treasury shares | - | (1,941 | ) | - | (10,589 | ) | - | ||||||||||||||||||
Net proceeds from sale of equity interests | 1,161 | 1,002 | 955 | 2,801 | 3,334 | ||||||||||||||||||||
Payment of dividend | (2,808 | ) | (2,374 | ) | (2,018 | ) | (7,592 | ) | (5,240 | ) | |||||||||||||||
Other | - | - | - | (469 | ) | - | |||||||||||||||||||
Net cash used in financing activities | (17,206 | ) | (6,036 | ) | (28,136 | ) | (39,936 | ) | (106,608 | ) | |||||||||||||||
Effect of foreign currency rate fluctuations on cash | 3,834 | (2,029 | ) | 2,548 | 3,099 | 9,630 | |||||||||||||||||||
Increase in cash and cash equivalents | 1,169 | 3,204 | 2,640 | 6,673 | 5,671 | ||||||||||||||||||||
Cash and cash equivalents at beginning of period | 35,998 | 32,794 | 25,152 | 30,494 | 22,121 | ||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 37,167 | $ | 35,998 | $ | 27,792 | $ | 37,167 | $ | 27,792 | |||||||||||||||
BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
SEGMENT RESULTS | March 31, 2012 | December 31, 2011 | March 31, 2011 | March 31, 2012 | March 31, 2011 | ||||||||||||||||||||
Specialty Fibers | |||||||||||||||||||||||||
Net sales | $ | 169,989 | $ | 176,660 | $ | 181,334 | $ | 530,071 | $ | 479,449 | |||||||||||||||
Operating income (a) | 40,268 | 41,920 | 43,965 | 126,019 | 100,550 | ||||||||||||||||||||
Depreciation and amortization (b) | 7,856 | 8,325 | 8,447 | 24,540 | 24,394 | ||||||||||||||||||||
Total assets | 488,190 | 482,236 | 519,656 | 488,190 | 519,656 | ||||||||||||||||||||
Capital expenditures | 19,501 | 11,510 | 8,535 | 39,996 | 36,800 | ||||||||||||||||||||
Nonwoven Materials | |||||||||||||||||||||||||
Net sales | $ | 54,188 | $ | 58,307 | $ | 64,488 | $ | 177,180 | $ | 195,035 | |||||||||||||||
Operating income (a) | 3,016 | 2,765 | 3,074 | 8,109 | 8,494 | ||||||||||||||||||||
Depreciation and amortization (b) | 3,916 | 4,009 | 3,885 | 12,142 | 11,118 | ||||||||||||||||||||
Total assets | 185,739 | 193,950 | 221,321 | 185,739 | 221,321 | ||||||||||||||||||||
Capital expenditures | 1,670 | 1,674 | 1,143 | 5,033 | 3,714 | ||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Net sales | $ | (7,112 | ) | $ | (7,870 | ) | $ | (8,040 | ) | $ | (23,022 | ) | $ | (25,111 | ) | ||||||||||
Operating income (loss) (a) | (2,937 | ) | (57,659 | ) | (3,023 | ) | (60,313 | ) | (9,837 | ) | |||||||||||||||
Depreciation and amortization (b) | 971 | 957 | 934 | 2,874 | 2,826 | ||||||||||||||||||||
Total assets | 168,189 | 156,295 | 132,160 | 168,189 | 132,160 | ||||||||||||||||||||
Capital expenditures | 572 | 402 | 18 | 1,013 | 618 | ||||||||||||||||||||
Total | |||||||||||||||||||||||||
Net sales | $ | 217,065 | $ | 227,097 | $ | 237,782 | $ | 684,229 | $ | 649,373 | |||||||||||||||
Operating income (loss) (a) | 40,347 | (12,974 | ) | 44,016 | 73,815 | 99,207 | |||||||||||||||||||
Depreciation and amortization (b) | 12,743 | 13,291 | 13,266 | 39,556 | 38,338 | ||||||||||||||||||||
Total assets | 842,118 | 832,481 | 873,137 | 842,118 | 873,137 | ||||||||||||||||||||
Capital expenditures | 21,743 | 13,586 | 9,696 | 46,042 | 41,132 | ||||||||||||||||||||
(a) The corporate segment includes operating elements such as segment eliminations, amortization of intangibles, impairment of long-lived assets, goodwill impairment, alternative fuel mixture credits, charges related to restructuring, unallocated at-risk compensation and unallocated stock-based compensation for executive officers and certain other employees. Corporate net sales represents the elimination of intersegment sales included in the specialty fibers reporting segment. | |||||||||||||||||||||||||
(b) Depreciation and amortization includes depreciation, depletion and amortization of intangibles. | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
ADJUSTED EBITDA | March 31, 2012 | December 31, 2011 | March 31, 2011 | March 31, 2012 | March 31, 2011 | ||||||||||||||||||||
Net income (loss) | $ | 25,845 | $ | (5,439 | ) | $ | 28,693 | $ | 61,513 | $ | 110,171 | ||||||||||||||
Income tax expense | 13,052 | (6,027 | ) | 12,789 | 7,126 | (23,274 | ) | ||||||||||||||||||
Interest expense | 1,210 | 868 | 1,533 | 5,426 | 6,555 | ||||||||||||||||||||
Amortization of debt costs | 155 | 155 | 155 | 465 | 508 | ||||||||||||||||||||
Early extinguishment of debt | - | - | - | - | 3,649 | ||||||||||||||||||||
Depreciation, depletion and amortization | 12,743 | 13,291 | 13,266 | 39,556 | 38,337 | ||||||||||||||||||||
EBITDA | 53,005 | 2,848 | 56,436 | 114,086 | 135,946 | ||||||||||||||||||||
Asset impairments | 92 | 53,136 | - | 53,228 | - | ||||||||||||||||||||
Restructuring | 1,137 | - | (125 | ) | 1,137 | 446 | |||||||||||||||||||
Non cash charges | 61 | 481 | 99 | 842 | 911 | ||||||||||||||||||||
Adjusted EBITDA | $ | 54,295 | $ | 56,465 | $ | 56,410 | $ | 169,293 | $ | 137,303 | |||||||||||||||
We calculate EBITDA as earnings before cumulative effect of change in accounting plus interest expense, income taxes and depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by adding back the following items: asset impairment charges, goodwill impairment, restructuring charges incurred since the inception of the current credit facility, non-cash charges and other (gains) losses and deducting any non-cash expense associated with alternative fuel mixture credits. You should not consider adjusted EBITDA to be an alternative measure of our net income, as an indicator of operating performance; or our cash flow, as an indicator of liquidity. Adjusted EBITDA corresponds with the definition contained in our US revolving credit facility, established on October 22, 2010, and it provides useful information concerning our ability to comply with debt covenants. Although we believe adjusted EBITDA enhances your understanding of our financial condition, this measure, when viewed individually, is not a better indicator of any trend as compared to other measures (e.g., net sales, net earnings, net cash flows, etc.). Prior period amounts have been adjusted to conform to the definition contained in our new credit facility. |
CONTACT:
Buckeye Technologies Inc.
Steve Dean, 901-320-8352
Senior
Vice President and Chief Financial Officer
or
Daryn Abercrombie,
901-320-8908
Investor Relations
www.bkitech.com