BOISE, Idaho, May 5 /PRNewswire-FirstCall/ -- Boise Inc. (NYSE:BZ)
today reported a net loss of $0.9 million or ($0.01) per diluted
share for first quarter 2009, compared with fourth quarter net loss
of $15.5 million or ($0.20) per diluted share. Boise Inc. first
quarter 2008 net loss was $16.4 million or ($0.26) per diluted
share. EBITDA, excluding special items, was $58.6 million for first
quarter 2009, compared with $76.0 million for fourth quarter 2008,
and $53.1 million for the combined first quarter 2008 for the
packaging and paper assets of Boise Cascade, L.L.C. (the
"Predecessor") and Boise Inc. Net covenant debt was $949.0 million
at March 31, 2009, a decline of $65.9 million from $1,014.9 million
at December 31, 2008. FINANCIAL HIGHLIGHTS (in millions, except
per-share data) Boise Inc. Combined(a) Boise Inc. Predecessor
-------------- ----------- ---------- ----------- Jan 1 - 1Q 4Q 1Q
1Q Feb 21, 2009 2008 2008 2008 2008 ---- ---- ---- ---- --------
Sales $500.3 $591.1 $587.9 $228.0 $359.9 Income from operations
$21.4 $11.4 $(9.3) $23.1 Net income (loss) $(0.9) $(15.5) $(16.4)
$22.8 Net income (loss) per share basic and diluted $(0.01) $(0.20)
$(0.26) EBITDA (b) $52.7 $41.4 $26.3 $2.6 $23.7 EBITDA excluding
special items (b) $58.6 $76.0 $53.1 $28.7 $24.4 Interest expense
$22.2 $26.2 $11.4 Depreciation and amortization (c) $32.0 $33.1
$12.7 $0.5 Net covenant debt (d) $949.0 $1,014.9 $1,005.7 (a)
Includes combined results for Predecessor and Boise Inc. (b) For
reconciliation of net income (loss) to EBITDA and EBITDA to EBITDA
excluding special items, see "Summary Notes to Consolidated
Financial Statements and Segment Information." (c) Predecessor
period excludes $16.7 million of depreciation due to classification
of property as assets held for sale in first quarter 2008. (d) Net
covenant debt is calculated in accordance with credit agreements.
For reconciliation of total debt to net covenant debt, see "Summary
Notes to Consolidated Financial Statements and Segment
Information." "In the first quarter 2009, we generated strong cash
flow and improved EBITDA over last year despite very challenging
markets for all our products. We also made good progress reducing
our covenant debt by nearly $66 million dollars," said Alexander
Toeldte, President and Chief Executive Officer of Boise Inc. "We
reduced financial risk in our newsprint business by terminating our
contract with AbitibiBowater to sell directly to customers and took
significant downtime to match production to demand. We managed our
working capital levels well and will continue to balance production
with demand and focus on cash generation." Sales Total sales for
first quarter 2009 were $500.3 million, a decrease of $87.6
million, or 15%, from $587.9 million during the combined first
quarter 2008 and down 15% from fourth quarter 2008 sales of $591.1
million. Paper segment sales decreased $73.7 million, or 17%,
during first quarter 2009 compared with the combined first quarter
2008, driven by 22% lower uncoated freesheet sales volumes. This
was due to market downtime and the St. Helens mill downsizing,
which eliminated 200,000 tons, or 13%, of our annual uncoated
freesheet capacity. Reduced sales volumes were partially offset by
higher net sales prices. Paper segment sales in first quarter 2009
declined by $37.6 million, or 10%, from fourth quarter 2008 due to
lower sales volumes, partially offset by higher net selling prices.
Packaging segment sales decreased $16.3 million, or 9%, to $157.1
million from $173.4 million during first quarter 2009 compared with
the combined first quarter 2008. The decrease was driven mainly by
lower newsprint and segment linerboard sales volumes as we balanced
production to match lower demand. Newsprint volumes were also
reduced in first quarter 2009 by the transition from selling all of
our output to AbitibiBowater to selling directly to customers,
which began in March. Sequentially, from fourth quarter 2008 to
first quarter 2009, Packaging segment sales decreased $56.7
million, or 27%, due to lower volumes and lower net selling prices.
Prices and Volumes Average net selling prices of uncoated freesheet
papers improved $104 per ton, or 12%, to $981 per ton during first
quarter 2009 compared with the combined first quarter 2008 and
improved $12 per ton, or 1%, over fourth quarter 2008. Uncoated
freesheet sales volumes were 303,000 tons during first quarter
2009, a decline of 22% versus the combined prior year period and
down 9% from fourth quarter 2008 due to market downtime as a result
of lower demand and reduced capacity as a result of the St. Helens
mill downsizing. Combined sales volumes of premium office, label
and release, and flexible packaging papers, which represented 26%
of our first quarter 2009 uncoated freesheet sales volumes,
increased by 1% from the prior year. Linerboard net selling prices
to third parties declined $44 per ton, or 11%, to $352 per ton in
first quarter 2009 from $396 per ton in the combined first quarter
2008 and declined $54 per ton, or 13%, from fourth quarter 2008,
due to softening demand, particularly in export markets. Linerboard
sales volumes to third parties were 38,000 tons, a decrease of 21%
compared with the combined first quarter 2008 and down 30% from
fourth quarter 2008 due to soft market conditions. We took downtime
late in fourth quarter 2008 and first quarter 2009 to match supply
to demand. Corrugated container and sheet prices improved $5 per
thousand square feet (msf), or 9%, to $60 per msf in first quarter
2009 over prices for these products during the combined first
quarter 2008 and decreased $1 per msf, or 2%, compared with fourth
quarter 2008 prices. Sales volumes for corrugated containers and
sheets were 1.4 thousand msf in first quarter 2009, a decline of 9%
versus the combined first quarter 2008 and down 7% from fourth
quarter 2008, driven mainly by lower volumes from our sheet feeder
plant in Texas as a result of slowing industrial markets. Sales
volumes for corrugated containers and sheets from our plants in the
Pacific Northwest experienced more modest declines due to more
stable demand in agricultural and food sectors. Newsprint pricing
in first quarter 2009 increased by $88 per ton, or 18%, to $588 per
ton over the combined first quarter 2008 and declined $55 per ton,
or 9%, from fourth quarter 2008. Newsprint sales volumes were
60,000 tons, a decline of 30% compared with the combined first
quarter 2008 and down 36% from fourth quarter 2008 due to weak
demand and the start-up of our direct marketing efforts. Input
Costs Total fiber, energy, and chemical costs for first quarter
2009 were $205.7 million, a decrease of $66.5 million, or 24%, over
costs of $272.2 million for the combined first quarter 2008, and a
decrease of $61.3 million, or 23%, from costs of $267.0 million for
fourth quarter 2008. INPUT COST SUMMARY Boise Boise Inc.
Combined(a) Inc. Predecessor -------------- ----------- -----
----------- Jan 1 - Feb 21, 1Q 2009 4Q 2008 1Q 2008 1Q 2008 2008
------- ------- ------- ------- -------- (in millions) Fiber $94.1
$124.0 $127.3 $51.3 $76.0 Energy $60.8 $77.5 $82.8 $34.8 $48.1
Chemicals $50.8 $65.5 $62.0 $25.5 $36.5 Total $205.7 $267.0 $272.2
$111.5 $160.7 (a) Includes combined results for Predecessor and
Boise Inc. Total fiber costs during first quarter 2009 were $94.1
million, a decrease of $33.2 million, or 26%, from $127.3 million
incurred for fiber in the combined first quarter 2008 and a
decrease of $29.9 million, or 24%, from $124.0 million for fourth
quarter 2008. This decrease was due primarily to lower prices for
purchased pulp, wood and recycled fiber, and reduced consumption of
wood fiber as a result of lower production capacity due to the St.
Helens mill downsizing and market downtime. Energy costs in first
quarter 2009 decreased $22.0 million, or 27%, to $60.8 million
compared with $82.8 million in the same quarter a year ago. Lower
overall energy consumption and lower prices for natural gas and
fuel were the primary drivers, partially offset by higher
electricity prices. Energy costs in first quarter 2009 decreased
$16.7 million, or 22%, from $77.5 million in fourth quarter 2008,
due to lower total consumption and prices for natural gas. Chemical
costs in first quarter 2009 were $50.8 million, a decrease of $11.2
million, or 18%, compared with $62.0 million in the prior year's
first quarter and down $14.7 million, or 22%, compared with $65.5
million in fourth quarter 2008, driven by reduced consumption
partially offset by higher prices. Alternative Fuel Tax Credit The
U.S. Internal Revenue Code allows an excise tax for taxpayers who
use alternative fuels in the taxpayer's trade or business. Each
year, under normal operating conditions, we produce and use
approximately 500 million gallons of fuel produced from biomass to
provide energy to four of our five paper mills. During the first
quarter, we filed to be registered as an alternative fuel mixer
and, in late April, received notification from the Internal Revenue
Service that our registration was approved. We became eligible to
receive the tax credit at our four pulp and paper mills beginning
at various dates from late January to late March 2009. Through
April 30, 2009, we had filed for approximately $37 million in tax
credits, before the effect of income taxes. To date, we have
received $3.9 million of cash related to these credits. Our first
quarter results do not include any effects of the alternative fuel
credits. Webcast and Conference Call Boise Inc. will host a webcast
and conference call on Tuesday, May 5, 2009, at 11:00 a.m. Eastern,
at which time we will review the company's recent performance. To
participate in the conference call, dial 866-841-1001
(international callers should dial 832-445-1689). The webcast may
be accessed through Boise's Internet site and will be archived for
one year following the call. Go to http://www.boiseinc.com/ and
click on the link to the webcast under Webcasts & Presentations
on the Investors drop-down menu. A replay of the conference call
will be available in Webcasts & Presentations from May 5 at
12:00 p.m. Eastern through June 5 at 11:59 p.m. Eastern. Playback
numbers are 800-642-1687 for U.S. callers and 706-645-9291 for
international callers. The passcode is 95734398. About Boise Inc.
Headquartered in Boise, Idaho, Boise Inc. (NYSE:BZ) manufactures
packaging products and papers including corrugated containers,
containerboard, label and release and flexible packaging papers,
imaging papers for the office and home, printing and converting
papers, newsprint, and market pulp. Our entire team of
approximately 4,120 employees is committed to delivering excellent
value while managing our businesses to sustain environmental
resources for future generations. Visit our website at
http://www.boiseinc.com/. Basis of Presentation On February 22,
2008, we completed the acquisition of Boise Cascade, L.L.C.'s
packaging and paper manufacturing businesses (the Acquisition). The
Acquisition was accounted for in accordance with SFAS No. 141,
Business Combinations, resulting in a new basis of accounting from
that previously reported by the Predecessor. However, sales and
most operating cost items are substantially consistent with those
reported by the Predecessor. Finished goods inventory was revalued
to estimated selling prices less costs of disposal and a reasonable
profit on the disposal. Depreciation changed as a result of
adjustments to the fair values of property and equipment due to our
purchase price allocation. We present our consolidated financial
statements in accordance with U.S. generally accepted accounting
principles (GAAP). Our earnings release also supplements the GAAP
presentations by reflecting EBITDA. EBITDA represents income (loss)
before interest (change in fair value of interest rate derivatives,
interest expense, and interest income), income taxes, and
depreciation, amortization, and depletion. EBITDA is the primary
measure used by our chief operating decision makers to evaluate
segment operating performance and to decide how to allocate
resources to segments. We believe EBITDA is useful to investors
because it provides a means to evaluate the operating performance
of our segments and our company on an ongoing basis using criteria
that are used by our internal decision makers and because it is
frequently used by investors and other interested parties in the
evaluation of companies with substantial financial leverage. We
believe EBITDA is a meaningful measure because it presents a
transparent view of our recurring operating performance and allows
management to readily view operating trends, perform analytical
comparisons, and identify strategies to improve operating
performance. For example, we believe that the inclusion of items
such as taxes, interest expense, and interest income distorts
management's ability to assess and view the core operating trends
in our segments. EBITDA, however, is not a measure of our liquidity
or financial performance under GAAP and should not be considered as
an alternative to net income (loss), income (loss) from operations,
or any other performance measure derived in accordance with GAAP or
as an alternative to cash flow from operating activities as a
measure of our liquidity. The use of EBITDA instead of net income
(loss) or segment income (loss) has limitations as an analytical
tool, including the inability to determine profitability; the
exclusion of interest and associated significant cash requirements;
and the exclusion of depreciation, amortization, and depletion,
which represent significant and unavoidable operating costs, given
the level of our indebtedness and the capital expenditures needed
to maintain our businesses. Management compensates for these
limitations by relying on our GAAP results. Our measures of EBITDA
are not necessarily comparable to other similarly titled captions
of other companies due to potential inconsistencies in the methods
of calculation. Forward-Looking Statements This news release may
contain statements that are "forward looking" as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, any statement that may
predict, forecast, indicate, or imply future results, performance,
or achievements. Forward-looking statements involve risks and
uncertainties, including but not limited to economic, competitive,
and technological factors outside our control that may cause our
business, strategy, or actual results to differ materially from the
forward-looking statements. Factors that could cause actual results
to differ materially from the forward-looking statements include,
among others, our substantial level of indebtedness; our continued
ability to comply with our financial covenants and debt service
obligations; our ability to comply with the continued listing
requirements of the NYSE; changes in the supply of, demand for, or
prices of our products; the activities of competitors; changes in
significant operating expenses, including raw material and energy
costs; our success at marketing newsprint directly to customers;
our ability to weather the current economic downturn in the United
States and elsewhere; changes in the regulatory environment,
including requirements for enhanced environmental compliance; and
other risks and uncertainties that are detailed in our filings with
the Securities and Exchange Commission. The Company does not
intend, and undertakes no obligation, to update any forward-looking
statements. Boise Inc. Consolidated Statements of Income (Loss)
(unaudited, in thousands, except share and per-share data) Boise
Inc. Predecessor -------------------------------- ----------- Three
Three Three Months Months Months January 1 Ended Ended Ended
Through March 31, December 31, March 31, February 21, 2009 2008
2008 2008 ---- ---- ---- ---- Sales Trade $484,868 $566,671
$226,044 $258,430 Related parties 15,417 24,448 1,944 101,490
------ ------ ----- ------- 500,285 591,119 227,988 359,920 -------
------- ------- ------- Costs and expenses Materials, labor, and
other operating expenses 413,139 490,576 195,429 313,931 Fiber
costs from related parties 5,703 7,771 18,629 7,662 Depreciation,
amortization, and depletion 31,972 33,126 12,747 477 Selling and
distribution expenses 13,782 13,715 5,943 9,097 General and
administrative expenses 10,373 7,556 4,549 6,606 St. Helens mill
restructuring 3,648 29,780 - - Other (income) expense, net 239
(2,820) (28) (989) ------ ------ ------ ------ 478,856 579,704
237,269 336,784 ------- ------- ------- ------- Income (loss) from
operations 21,429 11,415 (9,281) 23,136 ------ ------ ------ ------
Foreign exchange gain (loss) (678) (3,185) (853) 54 Change in fair
value of interest rate derivatives (132) (683) - - Interest expense
(22,154) (26,156) (11,435) (2) Interest income 54 94 1,821 161
----- ----- ----- ----- (22,910) (29,930) (10,467) 213 -------
------- ------- ------- Income (loss) before income taxes (1,481)
(18,515) (19,748) 23,349 Income tax (provision) benefit 565 3,030
3,377 (563) ----- ----- ----- ----- Net income (loss) $(916)
$(15,485) $(16,371) $22,786 ===== ======== ======== =======
Weighted average common shares outstanding: Basic and diluted
77,491,233 77,260,274 62,682,834 - Net income (loss) per common
share: Basic and diluted $(0.01) $(0.20) $(0.26) $- Segment
Information (unaudited, in thousands) Boise Inc. Predecessor
--------------------------------- ----------- Three Three Three
Months Months Months January 1 Ended Ended Ended Through March 31,
December 31, March 31, February 21, 2009 2008 2008 2008 ---- ----
---- ---- Segment sales Paper $351,995 $389,644 $172,203 $253,508
Packaging 157,132 213,788 59,885 113,485 Intersegment eliminations
and other (8,842) (12,313) (4,100) (7,073) ------ ------- ------
------ $500,285 $591,119 $227,988 $359,920 ======== ========
======== ======== Segment income (loss) Paper $24,776 $(12,303)
$11,849 $20,718 Packaging 1,125 26,075 (19,761) 5,685 Corporate and
Other (5,150) (5,542) (2,222) (3,213) ------ ------ ------ ------
20,751 8,230 (10,134) 23,190 ------ ------ ------- ------ Change in
fair value of interest rate derivatives (132) (683) - - Interest
expense (22,154) (26,156) (11,435) (2) Interest income 54 94 1,821
161 ----- ----- ----- ----- Income (loss) before income taxes
$(1,481) $(18,515) $(19,748) $23,349 ======= ======== ========
======= EBITDA (a) Paper $46,122 $9,222 $18,969 $21,066 Packaging
10,781 36,660 (14,548) 5,738 Corporate and Other (4,180) (4,526)
(1,808) (3,137) ------ ------ ------ ------ $52,723 $41,356 $2,613
$23,667 ======= ======= ====== ======= Boise Inc. Consolidated
Balance Sheets (unaudited, in thousands) Boise Inc.
--------------------------------- March 31, 2009 December 31, 2008
-------------- ----------------- ASSETS Current Cash and cash
equivalents $27,510 $22,518 Receivables Trade, less allowances of
$979 and $961 183,606 220,204 Related parties 2,532 1,796 Other
5,805 4,937 Inventories 309,952 335,004 Deferred income taxes 8,791
5,318 Prepaid and other 7,638 6,289 ----- ----- 545,834 596,066
------- ------- Property Property and equipment, net 1,250,219
1,262,810 Fiber farms and deposits 14,496 14,651 ------ ------
1,264,715 1,277,461 --------- --------- Deferred financing costs
69,718 72,570 Intangible assets, net 34,425 35,075 Other assets
6,454 7,114 ----- ----- Total assets $1,921,146 $1,988,286
========== ========== Boise Inc. Consolidated Balance Sheets
(continued) (unaudited, in thousands, except share data) Boise Inc.
--------------------------------- March 31, 2009 December 31, 2008
-------------- ----------------- LIABILITIES AND STOCKHOLDERS'
EQUITY Current Current portion of long-term debt $7,479 $25,822
Income taxes payable 804 841 Accounts payable Trade 157,871 177,157
Related parties 1,492 3,107 Accrued liabilities Compensation and
benefits 45,248 44,488 Interest payable 168 184 Other 21,167 17,402
------ ------ 234,229 269,001 ------- ------- Debt Long-term debt,
less current portion 967,340 1,011,628 Notes payable 69,229 66,606
------ ------ 1,036,569 1,078,234 --------- --------- Other
Deferred income taxes 15,208 8,907 Compensation and benefits
152,177 149,691 Other long-term liabilities 33,583 33,007 ------
------ 200,968 191,605 ------- ------- Commitments and contingent
liabilities Stockholders' Equity Preferred stock, $.0001 par value
per share: - - 1,000,000 shares authorized; none issued Common
stock, $.0001 par value per share: 8 8 250,000,000 shares
authorized; 79,879,372 shares and 79,716,130 shares issued and
outstanding Additional paid-in capital 576,008 575,151 Accumulated
other comprehensive loss (85,689) (85,682) Accumulated deficit
(40,947) (40,031) ------- ------- Total stockholders' equity
449,380 449,446 ------- ------- Total liabilities and stockholders'
equity $1,921,146 $1,988,286 ========== ========== Boise Inc.
Consolidated Statements of Cash Flows (unaudited, in thousands)
Boise Inc. Predecessor ------------------ ----------- Three Three
Months Months January 1 Ended Ended Through March 31, March 31,
February 21, 2009 2008 2008 ---- ---- ---- Cash provided by (used
for) operations Net income (loss) $(916) $(16,371) $22,786 Items in
net income (loss) not using (providing) cash Depreciation,
depletion, and amortization of deferred financing costs and other
35,030 13,554 477 Share-based compensation expense 857 - -
Related-party interest expense - 986 - Notes payable interest
expense 2,623 - - Pension and other postretirement benefit expense
2,450 1,237 1,826 Deferred income taxes (844) (3,377) 11 Change in
fair value of energy derivatives 2,191 (204) (37) Change in fair
value of interest rate derivatives 132 - - (Gain) loss on sales of
assets, net (20) (3) (943) Other 678 853 (54) Decrease (increase)
in working capital, net of acquisitions Receivables 38,800 23,485
(23,522) Inventories 25,258 (5,158) 5,343 Prepaid expenses 256
(7,451) 875 Accounts payable and accrued liabilities (19,577)
23,654 (10,718) Current and deferred income taxes (39) 1,806 335
Pension and other postretirement benefit payments (1,319) (47)
(1,826) Other 128 (1,155) 2,326 ------ ------ ----- Cash provided
by (used for) operations 85,688 31,809 (3,121) ------ ------ ------
Cash provided by (used for) investment Acquisitions of businesses
and facilities (543) (1,219,421) - Cash released from (held in)
trust, net - 403,989 - Expenditures for property and equipment
(17,171) (10,224) (10,168) Sales of assets 61 - 17,662 Other (412)
2,410 863 ----- ----- ----- Cash provided by (used for) investment
(18,065) (823,246) 8,357 ------- -------- ----- Cash provided by
(used for) financing Issuances of long-term debt 10,000 1,065,700 -
Payments of long-term debt (72,631) (35,000) - Payments to
stockholders for exercise of conversion rights - (120,170) -
Payments of deferred financing fees - (81,898) - Payments of
deferred underwriters fees - (12,420) - Net equity transactions
with related parties - - (5,237) ------ ------ ------ Cash provided
by (used for) financing (62,631) 816,212 (5,237) ------- -------
------ Increase (decrease) in cash and cash equivalents 4,992
24,775 (1) Balance at beginning of the period 22,518 186 8 ------
------ ------ Balance at end of the period $27,510 $24,961 $7
======= ======= ====== Summary Notes to Consolidated Financial
Statements and Segment Information The Consolidated Statements of
Income (Loss), Consolidated Balance Sheets, Consolidated Statements
of Cash Flows, and Segment Information do not include all Notes to
Consolidated Financial Statements and should be read in conjunction
with the Company's 2008 Annual Report on Form 10-K and the
Company's Quarterly Report on Form 10-Q for the period ended March
31, 2009, as well as the other reports the Company files with the
SEC. Net income (loss) for all periods presented involved estimates
and accruals. On February 22, 2008, Boise Inc. or "the Company,"
"we," "us," or "our" completed the acquisition (the Acquisition) of
Boise White Paper, L.L.C., Boise Packaging & Newsprint, L.L.C.,
Boise Cascade Transportation Holdings Corp. (collectively, the
Paper Group), and other assets and liabilities related to the
operation of the paper, packaging and newsprint, and transportation
businesses of the Paper Group and part of the headquarters
operations of Boise Cascade, L.L.C. (Boise Cascade). The business
we acquired is referred to as the "Predecessor." The accompanying
consolidated statement of income (loss) and cash flows for the
three months ended March 31, 2008, include the activities of
Aldabra 2 Acquisition Corp. prior to the Acquisition and the
operations of the acquired businesses from February 22, 2008,
through March 31, 2008. The consolidated statement of income (loss)
and cash flows for the period of January 1 through February 21,
2008, of the Predecessor are presented for comparative purposes.
Boise Inc. operates its business in three reportable segments:
Paper, Packaging, and Corporate and Other (support services). Boise
Inc. manufactures commodity and premium office papers, a range of
packaging papers, including label and release papers, flexible
packaging papers, and printing and converting papers. Boise Inc.
also manufactures corrugated containers, containerboard, newsprint,
and market pulp. (a) EBITDA represents income (loss) before
interest (change in fair value of interest rate derivatives,
interest expense, and interest income), income taxes, and
depreciation, amortization, and depletion. The following table
reconciles net income (loss) to EBITDA for Boise Inc. for the three
months ended March 31, 2009 and 2008, the three months ended
December 31, 2008, and the Predecessor period of January 1 through
February 21, 2008 (unaudited, in thousands): Boise Inc. Predecessor
----------------------------------- ----------- Three Three Three
Months Months Months January 1 Ended Ended Ended Through March 31,
December 31, March 31, February 21, 2009 2008 2008 2008 ---- ----
---- ---- Net income (loss) $(916) $(15,485) $(16,371) $22,786
Change in fair value of interest rate derivatives 132 683 - -
Interest expense 22,154 26,156 11,435 2 Interest income (54) (94)
(1,821) (161) Income tax provision (benefit) (565) (3,030) (3,377)
563 Depreciation, amortization, and depletion 31,972 33,126 12,747
477 ------ ------ ------ ------ EBITDA $52,723 $41,356 $2,613
$23,667 ======= ======= ====== ======= The following table
reconciles EBITDA to EBITDA excluding special items for Boise Inc.
for the three months ended March 31, 2009 and 2008, and the three
months ended December 31, 2008. The table also reconciles the
Predecessor period of January 1 through February 21, 2008, and the
combined three months ended March 31, 2008 (unaudited, in
thousands): Boise Inc. Predecessor Combined
------------------------------- ----------- -------- Three Three
Three Three Months Months Months January 1 Months Ended Ended Ended
Through Ended March 31, December 31, March 31, February 21, March
31, 2009 2008 2008 2008 2008 ---- ---- ---- ---- ---- EBITDA
$52,723 $41,356 $2,613 $23,667 $26,280 St. Helens mill
restructuring (a) 3,648 37,568 - - - Impact of energy hedges 2,191
(26) (204) (37) (241) Gain on changes in supplemental pension plans
- (2,914) - - - Inventory purchase accounting expense - - 6,555 -
6,555 Impact of DeRidder outage - - 19,776 732 20,508 ------ ------
------ ------ ------ EBITDA excluding special items $58,562 $75,984
$28,740 $24,362 $53,102 ======= ======= ======= ======= ======= (a)
In November 2008, we announced the restructuring of our St. Helens,
Oregon, paper mill. During the three months ended March 31, 2009,
we recorded $3.6 million of restructuring charges in "St. Helens
mill restructuring." Of the $37.6 million restructuring charge
recorded during the three months ended December 31, 2008, $29.8
million is included in "St. Helens mill restructuring" and $7.8
million related to inventory write-downs is included in "Materials,
labor, and other operating expenses." The following table
reconciles total debt to net debt and net covenant debt at March
31, 2009 and 2008, and December 31, 2008 (unaudited, in thousands):
Boise Inc. ----------------------------------- March 31, December
31, March 31, 2009 2008 2008 ---- ---- ---- Current portion of
long-term debt $7,479 $25,822 $11,000 Long-term debt, less current
portion 967,340 1,011,628 1,019,700 Notes payable 69,229 66,606
58,793 ------ ------ ------ Total debt 1,044,048 1,104,056
1,089,493 Less cash and cash equivalents (27,510) (22,518) (24,961)
------- ------- ------- Net debt 1,016,538 1,081,538 1,064,532 Less
notes payable (69,229) (66,606) (58,793) Other 1,729 - - ------
------ ------ Net covenant debt $949,038 $1,014,932 $1,005,739
======== ========== ========== DATASOURCE: Boise Inc. CONTACT:
Media, Virginia Aulin, +1-208-384-7837, or Investors, Jason Bowman,
+1-208-384-7456, both of Boise Inc. Web Site:
http://www.boiseinc.com/
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