Attached files
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| 8-K - BUCKEYE TECHNOLOGIES INC. 8-K - BUCKEYE TECHNOLOGIES INC | a6817007.htm |
Exhibit 99.1
Buckeye’s Fourth Quarter and Fiscal Year 2011 Results
Record sales and earnings for Fiscal Year 2011
Adjusted 4Q EPS* of $0.68 compared to $0.26 in 4Q-FY11
Record 4Q Sales up 25% versus Year-Ago Quarter
4Q Free cash flow* of $50 million applied toward $40MM in debt reduction and $10MM in share repurchases
Dividend to be increased by 20%
MEMPHIS, Tenn.--(BUSINESS WIRE)--August 2, 2011--Buckeye Technologies Inc. (NYSE:BKI) today announced fourth quarter adjusted net income* of $27.8 million or $0.68 per share. This excludes an after-tax non-cash asset impairment charge of $13.0 million, or $0.32 per share, relating to our recently announced plans to close our Canadian nonwovens plant by the end of December 2012 as well as other special items of $0.6 million or $0.01 per share. Adjusted net income* rose 162% as compared to the prior year period’s $10.6 million or $0.26 per share, which excluded after-tax costs of $0.9 million or $0.02 per share relating to early retirement of debt and restructuring.
Net sales were a record $256 million for the fourth quarter of fiscal 2011, up 25% versus net sales of $205 million in the fourth quarter of fiscal 2010 due to higher selling prices and increased shipment volume. The $0.42 increase in adjusted EPS*, compared to the prior year period, was also driven by higher selling prices and increased shipment volume.
Comparing the fourth quarter to the third quarter of fiscal 2011, sales were up $18 million or 8% primarily due to a 6% increase in shipment volume. Adjusted EPS* of $0.68 was off $0.03 compared to $0.71 in the third quarter due to a higher effective tax rate, and higher selling, research and administrative expenses, reflecting increased year-end compensation performance accruals. Adjusted pre-tax income was up by $1.0 million compared to the third quarter.
For fiscal year 2011, net sales were $905 million, a new record and up 20% from $756 million in fiscal 2010, primarily driven by higher selling prices. Adjusted net income* for the 2011 fiscal year was a record $90.8 million, or $2.23 per share, compared to $34.9 million or $0.91 per share in fiscal 2010. The growth in net income was due to significantly higher selling prices across all parts of our specialty fibers segment, along with a $0.19 favorable impact from reduced interest expense due to the $141 million debt reduction achieved over the course of the year.
Chairman and Chief Executive Officer John B. Crowe said, “We were pleased with our fourth quarter and our record fiscal year 2011 financial results. Fourth quarter revenue was significantly improved over the same quarter a year ago, surpassing the old record delivered in the preceding quarter. We indicated on our last quarter’s earnings conference call that we expected fourth quarter earnings to be similar to the third quarter, which is the case. Continued excellent free cash flow generation, which amounted to $50 million for the quarter, allowed us to reduce our long-term debt during the quarter by $40 million to $97 million on June 30. At the same time, we repurchased 400,000 shares of Buckeye stock under our outstanding 5.6 million share authorization, representing a return of cash to our shareholders of approximately $10 million. We enter our new fiscal year 2012 with solid momentum.”
Buckeye has scheduled a conference call for Wednesday morning, August 3, at 11:00 a.m. ET to discuss fourth quarter and fiscal year performance. Persons interested in listening by telephone may dial in at (800) 533-7954 within the United States. International callers should dial (785) 830-1924. Supplemental material for the call will be available on the Company’s website at www.bkitech.com or at www.streetevents.com.
Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.
Note Regarding Non-GAAP Financial Measures
*This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). The non-GAAP measures presented are “adjusted operating income”, “adjusted pre-tax income”, “adjusted net income”, and “adjusted earnings per share” and are equal to net income, pre-tax income, operating income and earnings per share excluding the after-tax effects of alternative fuel mixture credits (AFMC) and cellulosic biofuel credits (CBC), investment tax credits (ITC) on prior period expenditures, asset impairment cost, restructuring cost and early debt extinguishment cost.
|
4th Quarter |
3rd Quarter |
Total Year |
|||||||||||||
|
($ in Millions) |
2011 |
2010 |
2011 |
2011 |
2010 |
||||||||||
|
Operating income |
|||||||||||||||
|
Operating income in accordance with GAAP |
30.9 |
19.1 |
44.0 |
130.1 |
146.5 |
||||||||||
|
Special items: |
|||||||||||||||
|
Restructuring costs |
0.1 |
0.1 |
(0.1 |
) |
1.1 |
3.4 |
|||||||||
|
Alternative fuel mixture credits |
--- | --- | --- | --- | (77.7 | ) | |||||||||
|
Asset impairment |
13.0 |
--- |
--- |
13.0 |
--- |
||||||||||
|
Adjusted operating income |
44.0 |
19.2 |
43.9 |
144.2 |
72.2 |
||||||||||
|
Interest expense and amortization of debt |
(1.7 |
) |
(3.7 |
) |
(1.6 |
) |
(8.7 |
) |
(17.5 |
) |
|||||
|
Add back accrued CBC-related IRS interest |
0.7 |
--- |
0.6 |
2.5 |
--- |
||||||||||
|
Foreign exchange and other |
--- |
0.2 |
(0.9 |
) |
(1.7 |
) |
(0.5 |
) |
|||||||
|
Adjusted pre-tax income |
43.0 |
15.7 |
42.0 |
136.3 |
54.2 |
||||||||||
|
Net income |
|||||||||||||||
|
Net income in accordance with GAAP |
14.1 |
9.7 |
28.7 |
124.3 |
114.6 |
||||||||||
|
Special items, after-tax: |
|||||||||||||||
|
Restructuring costs |
0.1 |
0.1 |
(0.1 |
) |
1.0 |
2.1 |
|||||||||
|
AFMC / CBC |
0.6 |
--- |
0.4 |
(49.9 |
) |
(76.8 |
) |
||||||||
|
Asset Impairment |
13.0 |
--- |
--- |
13.0 |
--- |
||||||||||
|
Early Extinguishment of Debt |
--- |
0.8 |
--- |
2.4 |
1.6 |
||||||||||
|
ITC on prior period expenditures |
--- |
--- |
--- |
--- |
(6.6 |
) |
|||||||||
|
Adjusted net income |
27.8 |
10.6 |
29.0 |
90.8 |
34.9 |
||||||||||
|
4th Quarter |
3rd Quarter |
Total Year |
||||||||||||
|
($ in Millions) |
2011 |
2010 |
2011 |
2011 |
2010 |
|||||||||
|
Earnings per share (EPS) |
||||||||||||||
|
EPS in accordance with GAAP |
$0.35 |
$0.24 |
$0.70 |
$3.05 |
$2.90 |
|||||||||
|
Special items, after-tax, per share: |
||||||||||||||
|
Restructuring costs |
--- |
--- |
--- |
0.02 |
0.05 |
|||||||||
|
AFMC / CBC |
0.01 |
--- |
0.01 |
(1.22 |
) |
(1.94 |
) |
|||||||
|
Asset impairment |
0.32 |
--- |
--- |
0.32 |
--- |
|||||||||
|
Early Extinguishment of Debt |
--- |
0.02 |
--- |
0.06 |
0.04 |
|||||||||
|
ITC on prior period expenditures |
--- |
--- |
--- |
--- |
(0.14 |
) |
||||||||
|
Adjusted EPS |
$0.68 |
$0.26 |
$0.71 |
$2.23 |
$0.91 |
|||||||||
|
Free Cash Flow |
||||||||||||||
|
Net cash provided by operating activities |
66.9 |
51.1 |
38.1 |
210.8 |
125.5 |
|||||||||
|
Net cash used in investing activities |
(16.5 |
) |
(17.9 |
) |
(9.8 |
) |
(57.8 |
) |
(40.6 |
) |
||||
|
Free Cash Flow |
50.4 |
33.2 |
28.3 |
153.0 |
84.9 |
|||||||||
Note Regarding Forward-Looking Statements
This press release also 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 the Company and the demand for its products, expected cost reductions associated with our recent move to one-machine operation at our Delta plant and the completion of our Foley energy independence project, 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 the Company’s Annual Report on Form 10-K and other period filings with the Securities and Exchange Commission.
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| June 30, 2011 | March 31, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||||
| Net sales | $ | 255,900 | $ | 237,782 | $ | 205,130 | $ | 905,273 | $ | 756,426 | |||||||||
| Cost of goods sold | 196,333 | 180,318 | 171,995 | 707,503 | 635,023 | ||||||||||||||
| Gross margin | 59,567 | 57,464 | 33,135 | 197,770 | 121,403 | ||||||||||||||
| Gross margin as a percentage of sales | 23.3 | % | 24.2 | % | 16.2 | % | 21.8 | % | 16.0 | % | |||||||||
| Selling, research and administrative expenses | 15,096 | 13,102 | 13,441 | 51,705 | 48,107 | ||||||||||||||
| Amortization of intangibles and other | 513 | 488 | 483 | 1,966 | 1,905 | ||||||||||||||
| Asset impairment | 13,007 | - | - | 13,007 | - | ||||||||||||||
| Restructuring costs | 85 | (125 | ) | 144 | 1,082 | 3,353 | |||||||||||||
| Alternative fuel mixture credits | - | - | - | - | (77,677 | ) | |||||||||||||
| Other operating income | - | (17 | ) | (27 | ) | (63 | ) | (751 | ) | ||||||||||
| Operating income | 30,866 | 44,016 | 19,094 | 130,073 | 146,466 | ||||||||||||||
| Net interest expense and amortization of debt costs | (1,716 | ) | (1,642 | ) | (3,671 | ) | (8,672 | ) | (17,501 | ) | |||||||||
| Early extinguishment of debt | - | - | (1,234 | ) | (3,649 | ) | (2,606 | ) | |||||||||||
| Foreign exchange and other | (12 | ) | (892 | ) | 172 | (1,717 | ) | (548 | ) | ||||||||||
| Income before income taxes | 29,138 | 41,482 | 14,361 | 116,035 | 125,811 | ||||||||||||||
| Income tax expense (benefit) | 15,041 | 12,789 | 4,645 | (8,233 | ) | 11,237 | |||||||||||||
| Net income | $ | 14,097 | $ | 28,693 | $ | 9,716 | $ | 124,268 | $ | 114,574 | |||||||||
| Computation of diluted earnings per share under the two-class method: | |||||||||||||||||||
| Net income attributable to shareholders | $ | 14,097 | $ | 28,693 | $ | 9,716 | $ | 124,268 | $ | 114,574 | |||||||||
|
Less: Distributed and undistributed income allocated to participating securities (nonvested stock) |
(203 | ) | (522 | ) | - | (2,150 | ) | - | |||||||||||
|
Distributed and undistributed income available to shareholders |
$ | 13,894 | $ | 28,171 | $ | 9,716 | $ | 122,118 | $ | 114,574 | |||||||||
| Diluted weighted average shares outstanding | 40,118 | 40,195 | 39,964 | 40,003 | 39,505 | ||||||||||||||
| Diluted earnings per share | $ | 0.35 | $ | 0.70 | $ | 0.24 | $ | 3.05 | $ | 2.90 | |||||||||
| BUCKEYE TECHNOLOGIES INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| June 30 | March 31 | June 30 | ||||||
| 2011 | 2011 | 2010 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 30,494 | $ | 27,792 | $ | 22,121 | ||
| Accounts receivable, net | 140,582 | 141,008 | 122,960 | |||||
| Income tax and AFMC Receivable | - | 1,460 | 68,356 | |||||
| Inventories | 91,024 | 97,879 | 74,850 | |||||
| Deferred income taxes and other | 12,216 | 11,789 | 9,541 | |||||
| Total current assets | 274,316 | 279,928 | 297,828 | |||||
| Property, plant and equipment, net | 530,468 | 538,082 | 524,475 | |||||
| Goodwill | 2,425 | 2,425 | 2,425 | |||||
| Deferred income taxes | 32,741 | 25,441 | - | |||||
| Intellectual property and other, net | 29,901 | 27,261 | 27,726 | |||||
| Total assets | $ | 869,851 | $ | 873,137 | $ | 852,454 | ||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 41,437 | $ | 39,311 | $ | 39,376 | ||
| Accrued expenses | 71,722 | 51,588 | 44,007 | |||||
| Short-term debt | - | - | 198 | |||||
| Current portion of long-term debt | - | - | 67,000 | |||||
| Total current liabilities | 113,159 | 90,899 | 150,581 | |||||
| Long-term debt | 96,921 | 136,570 | 170,332 | |||||
| Deferred income taxes | 7,968 | 719 | 56,344 | |||||
| Other liabilities | 72,506 | 74,500 | 37,876 | |||||
| Stockholders' equity | 579,297 | 570,449 | 437,321 | |||||
| Total liabilities and stockholders' equity | $ | 869,851 | $ | 873,137 | $ | 852,454 | ||
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| June 30, 2011 | March 31, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net income | $ | 14,097 | $ | 28,693 | $ | 9,716 | $ | 124,268 | $ | 114,574 | |||||||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||||||||
| Impairment of long-lived assets | 13,007 | - | - | 13,007 | - | ||||||||||||||||||
| Depreciation | 13,146 | 12,778 | 11,951 | 50,030 | 46,275 | ||||||||||||||||||
| Amortization | 668 | 643 | 670 | 2,629 | 2,857 | ||||||||||||||||||
| Loss on early extinguishment of debt | - | - | 1,234 | 3,649 | 2,606 | ||||||||||||||||||
| Deferred income taxes | (735 | ) | (15,119 | ) | 7,583 | (81,709 | ) | 7,658 | |||||||||||||||
| Noncurrent AFMC refund payable | - | - | - | 41,144 | - | ||||||||||||||||||
| Loss on disposal of equipment | 387 | 99 | 637 | 1,297 | 1,096 | ||||||||||||||||||
| Insurance proceeds applied to capital investments | - | - | - | (161 | ) | - | |||||||||||||||||
| Provision for bad debts | (124 | ) | (162 | ) | 270 | (198 | ) | (84 | ) | ||||||||||||||
| Excess tax benefit from stock based compensation | (1,666 | ) | (383 | ) | (707 | ) | (2,494 | ) | (726 | ) | |||||||||||||
| Stock-based compensation expense | 1,224 | 1,235 | 295 | 4,594 | 2,335 | ||||||||||||||||||
| Other | (258 | ) | 114 | 3,280 | (188 | ) | 2,503 | ||||||||||||||||
| Change in operating assets and liabilities | |||||||||||||||||||||||
| Accounts receivable | (1,174 | ) | (20,093 | ) | (7,837 | ) | (14,805 | ) | (16,200 | ) | |||||||||||||
| Income tax and AFMC receivable | 1,460 | 15,129 | 5,453 | 68,356 | (58,982 | ) | |||||||||||||||||
| Inventories | 7,182 | (3,900 | ) | 7,205 | (13,532 | ) | 12,452 | ||||||||||||||||
| Other assets | 30 | (1,738 | ) | (1,054 | ) | 121 | (94 | ) | |||||||||||||||
| Accounts payable and other liabilities | 19,631 | 20,766 | 12,395 | 14,832 | 9,220 | ||||||||||||||||||
| Net cash provided by operating activities | 66,875 | 38,062 | 51,091 | 210,840 | 125,490 | ||||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||||
| Purchases of property, plant & equipment | (16,175 | ) | (9,696 | ) | (17,771 | ) | (57,307 | ) | (47,540 | ) | |||||||||||||
| Proceeds from sale of assets | 3 | - | 8 | 7 | 8 | ||||||||||||||||||
| Proceeds from State of Florida grant | - | - | - | - | 7,381 | ||||||||||||||||||
|
Proceeds from insurance settlement related to capital investments |
- | - | - | 161 | - | ||||||||||||||||||
| Other | (290 | ) | (138 | ) | (110 | ) | (639 | ) | (421 | ) | |||||||||||||
| Net cash used in investing activities | (16,462 | ) | (9,834 | ) | (17,873 | ) | (57,778 | ) | (40,572 | ) | |||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||||
| Net borrowings (payments) under line of credit | (39,649 | ) | (27,456 | ) | (10,497 | ) | (609 | ) | 80,502 | ||||||||||||||
| Payments on long term debt and other | - | - | (25,000 | ) | (140,000 | ) | (170,000 | ) | |||||||||||||||
| Payments for debt issuance costs | - | - | (650 | ) | (2,586 | ) | (650 | ) | |||||||||||||||
| Payments related to early extinguishment of debt | - | - | (1,700 | ) | (1,984 | ) | (1,700 | ) | |||||||||||||||
| Excess tax benefit from stock based compensation | 1,666 | 383 | 707 | 2,494 | 726 | ||||||||||||||||||
| Purchase of treasury shares | (9,799 | ) | - | - | (9,799 | ) | - | ||||||||||||||||
| Net proceeds from sale of equity interests | 677 | 955 | 3,906 | 4,011 | 4,600 | ||||||||||||||||||
| Payment of dividend | (2,035 | ) | (2,018 | ) | - | (7,275 | ) | - | |||||||||||||||
| Other | - | - | (684 | ) | - | (684 | ) | ||||||||||||||||
| Net cash used in financing activities | (49,140 | ) | (28,136 | ) | (33,918 | ) | (155,748 | ) | (87,206 | ) | |||||||||||||
| Effect of foreign currency rate fluctuations on cash | 1,429 | 2,548 | (4,114 | ) | 11,059 | 2,348 | |||||||||||||||||
| Increase (decrease) in cash and cash equivalents | 2,702 | 2,640 | (4,814 | ) | 8,373 | 60 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 27,792 | 22,400 | 26,935 | 22,121 | 22,061 | ||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 30,494 | $ | 25,040 | $ | 22,121 | $ | 30,494 | $ | 22,121 | |||||||||||||
| BUCKEYE TECHNOLOGIES INC. | ||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| SEGMENT RESULTS | June 30, 2011 | March 31, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||||||||
| Specialty Fibers | ||||||||||||||||||||||||
| Net sales | $ | 193,883 | $ | 181,334 | $ | 148,690 | $ | 673,332 | $ | 537,483 | ||||||||||||||
| Operating income (a) | 42,570 | 43,965 | 19,276 | 143,120 | 65,219 | |||||||||||||||||||
| Depreciation and amortization (b) | 8,565 | 8,447 | 7,760 | 32,959 | 29,604 | |||||||||||||||||||
| Capital expenditures | 12,726 | 8,535 | 16,026 | 49,526 | 42,591 | |||||||||||||||||||
| Nonwoven Materials | ||||||||||||||||||||||||
| Net sales | $ | 69,896 | $ | 64,488 | $ | 63,912 | $ | 264,931 | $ | 246,803 | ||||||||||||||
| Operating income (a) | 5,274 | 3,074 | 3,746 | 13,768 | 16,797 | |||||||||||||||||||
| Depreciation and amortization (b) | 4,084 | 3,885 | 3,642 | 15,202 | 14,770 | |||||||||||||||||||
| Capital expenditures | 3,156 | 1,143 | 1,445 | 6,870 | 3,971 | |||||||||||||||||||
| Corporate | ||||||||||||||||||||||||
| Net sales | $ | (7,879 | ) | $ | (8,040 | ) | $ | (7,472 | ) | $ | (32,990 | ) | $ | (27,860 | ) | |||||||||
| Operating income (loss) (a) | (16,978 | ) | (3,023 | ) | (3,928 | ) | (26,815 | ) | 64,450 | |||||||||||||||
| Depreciation and amortization (b) | 1,011 | 934 | 1,033 | 3,837 | 3,809 | |||||||||||||||||||
| Capital expenditures | 293 | 18 | 300 | 911 | 978 | |||||||||||||||||||
| Total | ||||||||||||||||||||||||
| Net sales | $ | 255,900 | $ | 237,782 | $ | 205,130 | $ | 905,273 | $ | 756,426 | ||||||||||||||
| Operating income (loss) (a) | 30,866 | 44,016 | 19,094 | 130,073 | 146,466 | |||||||||||||||||||
| Depreciation and amortization (b) | 13,660 | 13,266 | 12,435 | 51,998 | 48,183 | |||||||||||||||||||
| Capital expenditures | 16,175 | 9,696 | 17,771 | 57,307 | 47,540 | |||||||||||||||||||
| (a) The corporate segment includes operating elements such as segment eliminations, amortization of intangibles, impairment of long-lived assets, 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 | Year Ended | |||||||||||||||||||||||
| ADJUSTED EBITDA | June 30, 2011 | March 31, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||||||||
| Net income (loss) | $ | 14,097 | $ | 28,693 | $ | 9,716 | $ | 124,268 | $ | 114,574 | ||||||||||||||
| Income tax expense | 15,041 | 12,789 | 4,645 | (8,233 | ) | 11,237 | ||||||||||||||||||
| Interest expense | 1,635 | 1,533 | 3,493 | 8,190 | 16,678 | |||||||||||||||||||
| Amortization of debt costs | 155 | 155 | 187 | 663 | 946 | |||||||||||||||||||
| Early extinguishment of debt | - | - | 1,234 | 3,649 | 2,606 | |||||||||||||||||||
| Depreciation, depletion and amortization | 13,659 | 13,266 | 12,434 | 51,996 | 48,180 | |||||||||||||||||||
| EBITDA | 44,587 | 56,436 | 31,709 | 180,533 | 194,221 | |||||||||||||||||||
| Asset impairments | 13,007 | - | - | 13,007 | - | |||||||||||||||||||
| Restructuring | 85 | (124 | ) | - | 531 | - | ||||||||||||||||||
| Non cash charges | 424 | 99 | 657 | 1,335 | 1,303 | |||||||||||||||||||
| Adjusted EBITDA | $ | 58,103 | $ | 56,411 | $ | 32,366 | $ | 195,406 | $ | 195,524 | ||||||||||||||
|
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, 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. |
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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