Full Year

2013

2012

Price per ton of paper

$891

$901

Total paper volume – 000s tons  

3,318

3,371

Market-related downtime - 000s tons 

69

34

Gross margin % 

6.2%

3.7%

NewPage Holdings Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

 Years Ended December 31, 2013 and 2012 

 Dollars in millions, except per share amounts for Successor in dollars 

 Successor 

 Predecessor 

2013

2012

Net sales

$

3,054

$

3,131

Cost of sales

2,865

3,015

Selling, general and administrative expenses

146

139

Interest expense

47

26

Other (income) expense, net

—

—

Income (loss) before reorganization items and income taxes

(4)

(49)

Reorganization items, net

—

(1,288)

Income (loss) before income taxes

(4)

1,239

Income tax (benefit)

(2)

(19)

Net income (loss)

$

(2)

$

1,258

Net income (loss) per share:

     Basic and diluted

$

(0.27)

$

12.58

Weighted average common shares outstanding:

     Basic and diluted

7,080,218

100

NewPage Holdings Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

December 31, 2013 and 2012

Dollars in millions

Successor

2013

2012

ASSETS

Cash and cash equivalents

$

83

$

43

Accounts receivable, net

204

220

Inventories

520

472

Other current assets

25

41

  Total current assets

832

776

Property, plant and equipment, net

1,208

1,314

Other assets

135

124

TOTAL ASSETS

$

2,175

$

2,214

LIABILITIES AND EQUITY 

Accounts payable

$

168

$

193

Other current liabilities

177

137

Current maturities of long-term debt

—

5

  Total current liabilities

345

335

Long-term debt

487

485

Other long-term obligations

308

581

Commitments and contingencies

EQUITY 

Preferred stock, 100,000 shares authorized, 

  $0.001 per share par value

—

—

Common stock, 16,000,000 shares authorized,

  7,093,924 shares issued and 7,087,239 outstanding,

  $0.001 per share par value

—

—

Treasury stock, 6,685 shares on December 31, 2013, at cost

—

—

Additional paid-in capital

814

813

Accumulated deficit

(2)

—

Accumulated other comprehensive income (loss)

223

—

  Total equity 

1,035

813

TOTAL LIABILITIES AND EQUITY 

$

2,175

$

2,214

NewPage Holdings Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

Years Ended December 31, 2013 and 2012

 Dollars in millions 

 Successor 

Predecessor

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$

(2)

$

1,258

Adjustments to reconcile net income (loss) to

net cash provided by (used for) operating activities:

  Depreciation and amortization

184

242

  Non-cash interest expense

6

65

  (Gain) loss on disposal of assets

2

6

  Deferred income taxes

(2)

(1)

  U.S. pension expense

3

33

  U.S. pension funding

(41)

(27)

  Equity award expense

14

1

  Non-cash reorganization items, net

—

(1,408)

  Debtor in possession financing costs

—

4

  Payment of settlement cash and litigation trust funding

—

(32)

  Changes in operating assets and liabilities:

        Accounts receivable

16

17

        Inventories

(48)

(28)

        Other operating assets

(12)

17

        Accounts payable

(25)

(6)

        Accrued expenses and other obligations

21

(138)

    Net cash provided by (used for) operating activities

116

3

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(75)

(157)

Proceeds from sales of assets

1

—

Restricted cash

—

12

Proceeds from sale of investment shares

4

—

    Net cash provided by (used for) investing activities

(70)

(145)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of long-term debt

—

490

Payment of financing costs

(1)

(27)

Repayments of long-term debt

(5)

(166)

Borrowings on revolving credit facility

405

—

Payments on revolving credit facility

(405)

—

Proceeds from debtor in possession financing

—

379

Repayments of debtor in possession financing

—

(629)

Debtor in possession financing costs

—

(4)

Acquisition of treasury stock

—

—

    Net cash provided by (used for) financing activities

(6)

43

Net increase (decrease) in cash and cash equivalents

40

(99)

  Cash and cash equivalents at beginning of period

43

142

  Cash and cash equivalents at end of period (2012: Successor)

$

83

$

43

NewPage Holdings Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (unaudited)

 Years Ended December 31, 2013 and 2012 

Dollars in millions

 Successor 

 Predecessor 

2013

2012

Net income (loss)

$

(2)

$

1,258

Interest expense

47

26

Income tax (benefit)

(2)

(19)

Depreciation and amortization

184

242

EBITDA

$

227

$

1,507

Equity awards

14

1

(Gain) loss on disposal of assets

2

6

Non-cash U.S. pension expense

—

6

Integration and related severance costs and other charges

14

8

Reorganization items, net

—

(1,288)

Post-emergence bankruptcy-related items

4

—

Merger related costs

8

—

Other

—

(2)

Adjusted EBITDA

$

269

$

238

EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation and amortization. EBITDA and Adjusted EBITDA (as described in table above) are not measures of our performance under accounting principles generally accepted in the United States ("U.S. GAAP"), are not intended to represent net income (loss), and should not be used as alternatives to net income (loss) as indicators of performance. EBITDA and Adjusted EBITDA are shown because they are bases upon which our management assesses performance and are primary components of certain covenants under our revolving credit facility. In addition, our management believes EBITDA and Adjusted EBITDA are useful to investors because they and similar measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. The use of EBITDA and Adjusted EBITDA instead of net income (loss) has limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.