AUSTIN, Texas--(BUSINESS WIRE)--Apr. 22, 2009--
Temple-Inland Inc. (NYSE:TIN) today reported first quarter 2009 net
income of $35 million, or $0.33 per diluted share, compared with fourth
quarter 2008 net loss of $6 million, or $0.06 per share, and first
quarter 2008 net loss of $13 million, or $0.12 per share.
First quarter 2009 net income excluding special items was $32 million,
or $0.30 per diluted share, compared with fourth quarter 2008 net income
excluding special items of $12 million, or $0.11 per diluted share, and
first quarter 2008 net loss excluding special items of $5 million, or
$0.05 per share. Results for first quarter 2009 include special items of
$0.03 per share primarily consisting of an after-tax gain of $6 million,
or $0.06 per diluted share, related to the purchase and retirement of
long-term debt and an after-tax charge of $2 million, or $0.02 per
diluted share, resulting from facility closures and headcount reductions.
|
|
|
First Quarter
|
|
Fourth Quarter
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
$0.33
|
|
|
($0.12
|
)
|
|
($0.06
|
)
|
|
Adjustment for special items
|
|
($0.03
|
)
|
|
$0.07
|
|
|
$0.17
|
|
|
Net income (loss) per share, excluding special items
|
|
$0.30
|
|
|
($0.05
|
)
|
|
$0.11
|
|
Corrugated Packaging
|
|
First Quarter
|
|
Fourth Quarter
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
Segment Operating Income ($ in Millions)
|
$105
|
|
$55
|
|
$68
|
Corrugated packaging operating results for first quarter 2009 were a
record $105 million. Earnings improved in first quarter 2009 compared
with fourth quarter 2008 as higher box volumes and lower input and
converting costs more than offset lower box prices. Operating results
improved in first quarter 2009 compared with first quarter 2008 as
higher box prices and lower input and converting costs more than offset
lower volumes and downtime related expenses.
Building Products
|
|
|
First Quarter
|
|
Fourth Quarter
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
Segment Operating Income ($ in Millions)
|
|
($2)
|
|
($21)
|
|
($14)
|
Building products operating results improved in first quarter 2009
compared with fourth quarter 2008 as higher volumes for all products and
lower costs more than offset declining prices for lumber, particleboard
and gypsum. Operating results improved in first quarter 2009 compared
with first quarter 2008 as higher gypsum prices, a lower cost structure,
and lower input costs more than offset lower lumber and particleboard
volumes.
Comments
Doyle R. Simons, chairman and chief executive officer of Temple-Inland
Inc., said, “We delivered outstanding operating results and generated
$80 million of cash from operations in first quarter 2009 despite tough
economic conditions.
“In Corrugated Packaging, we had record earnings in the quarter
resulting from our box plant transformation, continued success of our
PBL acquisition, our heavy orientation to the food and beverage market,
our integrated system and lower input costs. We continued to match our
production to our demand and our quarter end inventories were down
compared with year ago and fourth quarter 2008 levels.
“In Building Products, we improved our operating results by $19 million
compared with year ago levels despite the continued decline in housing
starts. In the quarter, we benefited from our lower cost structure,
declining input costs and our mix of products. We remain focused on
matching our supply with demand, lowering costs and generating cash in
this business.
“As we enter second quarter 2009, economic conditions continue to be
uncertain. However, the actions we have taken to improve asset
utilization, drive down our costs, match production to our demand and
profitably grow our business positions us to continue to deliver solid
relative results.”
Temple-Inland will host a conference call on April 22, 2009 at 9:30 am
ET to discuss results of first quarter 2009. To access the conference
call, listeners calling from the United States and Canada should dial
1-866-394-6665 at least 15 minutes prior to the start of the call. The
passcode for the conference call is: 94185457. Those wishing to access
the call from outside the United States and Canada should dial
1-706-634-1667 and use the same passcode as set forth above. Replays of
the call will be available for two weeks following completion of the
live call and can be accessed at 1-800-642-1687 in the United States and
Canada and at 1-706-645-9291 outside the United States and Canada. The
passcode for the replay is: 94185457.
Temple-Inland Inc. is a manufacturing company focused on corrugated
packaging and building products. The fully integrated corrugated
packaging operation consists of 7 mills and 63 converting facilities.
The building products operation manufactures a diverse line of building
products for new home construction, commercial and repair and remodeling
markets. Temple-Inland's address on the World Wide Web is www.templeinland.com.
This release contains “forward-looking statements” within the meaning of
the federal securities laws. These statements reflect management’s
current views with respect to future events and are subject to risk and
uncertainties. We note that a variety of factors and uncertainties could
cause our actual results to differ significantly from the results
discussed in the forward-looking statements. Factors and uncertainties
that might cause such differences include, but are not limited to:
general economic, market, or business conditions; the opportunities (or
lack thereof) that may be presented to us and that we may pursue;
fluctuations in costs and expenses including the costs of raw materials,
purchased energy, and freight; changes in interest rates; current
conditions in financial markets could adversely affect our ability to
finance our operations; demand for new housing; accuracy of accounting
assumptions related to impaired assets, pension and postretirement
costs, contingency reserves and income taxes; competitive actions by
other companies; changes in laws or regulations; our ability to execute
certain strategic and business improvement initiatives; the accuracy of
certain judgments and estimates concerning the integration of acquired
operations; and other factors, many of which are beyond our control.
This release includes non-GAAP financial measures. The required
reconciliations to GAAP financial measures are included in this release.
|
TEMPLE-INLAND INC. AND SUBSIDIARIES
CONSOLIDATED EARNINGS AND SEGMENT RESULTS
(Preliminary and Unaudited)
|
|
|
|
First Quarter
|
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
(in millions, except per share)
|
|
|
Corrugated packaging
|
$
|
790
|
|
$
|
776
|
|
|
Building products
|
|
151
|
|
|
168
|
|
|
Total revenues
|
$
|
941
|
|
$
|
944
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
Corrugated packaging
|
$
|
105
|
|
$
|
55
|
|
|
Building products
|
|
(2
|
)
|
|
(21
|
)
|
|
Total segment operating income
|
|
103
|
|
|
34
|
|
|
Items not included in segments:
|
|
|
|
|
|
|
|
General and administrative expense
|
|
(17
|
)
|
|
(21
|
)
|
|
Share-based and long-term incentive compensation
|
|
(9
|
)
|
|
(4
|
)
|
|
Other operating income (expense)
|
|
(4
|
)
|
|
(15
|
)
|
|
Other non-operating income
|
|
10
|
|
|
1
|
|
|
Net interest income (expense) on financial assets and nonrecourse
financial liabilities of special purpose entities
|
|
2
|
|
|
(3
|
)
|
|
Interest expense on debt
|
|
(19
|
)
|
|
(17
|
)
|
|
Income (loss) before taxes
|
|
66
|
|
|
(25
|
)
|
|
Income tax (expense) benefit
|
|
(30
|
)
|
|
12
|
|
|
Net Income (loss)
|
|
36
|
|
|
(13
|
)
|
|
Net income attributable to noncontrolling interest of special
purpose entities
|
|
(1
|
)
|
|
––
|
|
|
Net income (loss) attributable to Temple-Inland Inc.
|
$
|
35
|
|
$
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
Average basic shares outstanding
|
|
106.7
|
|
|
106.7
|
|
|
Average diluted shares outstanding
|
|
106.7
|
|
|
107.6
|
|
|
|
|
|
|
|
|
|
|
Per share information
|
|
|
|
|
|
|
|
Basic earnings
|
$
|
0.33
|
|
$
|
(0.12
|
)
|
|
Diluted earnings (a)
|
$
|
0.33
|
|
$
|
(0.12
|
)
|
|
Dividends
|
$
|
0.10
|
|
$
|
0.10
|
|
|
(a) Earnings per share for 2008 is based on average
basic shares outstanding due to our loss from continuing
operations.
|
|
TEMPLE-INLAND INC. AND SUBSIDIARIES
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(Preliminary and Unaudited)
|
|
|
First Quarter-
End
2009
|
|
Year-End
2008
|
|
|
(Dollars in millions)
|
|
ASSETS
|
|
|
|
|
Current Assets
|
$
|
1,063
|
|
$
|
1,073
|
|
Property and Equipment
|
|
1,628
|
|
|
1,664
|
|
Financial Assets of Special Purpose Entities
|
|
2,475
|
|
|
2,474
|
|
Goodwill
|
|
394
|
|
|
394
|
|
Other Assets
|
|
275
|
|
|
264
|
|
TOTAL ASSETS
|
$
|
5,835
|
|
$
|
5,869
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current Liabilities
|
$
|
397
|
|
$
|
446
|
|
Long-Term Debt
|
|
1,142
|
|
|
1,191
|
|
Nonrecourse Financial Liabilities of Special Purpose Entities
|
|
2,140
|
|
|
2,140
|
|
Deferred Tax Liability
|
|
778
|
|
|
750
|
|
Liability for Pension Benefits
|
|
174
|
|
|
172
|
|
Liability for Postretirement Benefits
|
|
101
|
|
|
101
|
|
Other Long-Term Liabilities
|
|
294
|
|
|
292
|
|
TOTAL LIABILITIES
|
|
5,026
|
|
|
5,092
|
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
Temple-Inland Inc. Shareholders’ Equity
|
|
717
|
|
|
686
|
|
Noncontrolling Interest of Special Purpose Entities
|
|
92
|
|
|
91
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
809
|
|
|
777
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
5,835
|
|
$
|
5,869
|
|
TEMPLE-INLAND INC. AND SUBSIDIARIES
SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Preliminary and Unaudited)
|
|
|
|
First Quarter
2009
|
|
|
Fourth Quarter
2008
|
|
|
Third Quarter
2008
|
|
|
Second Quarter
2008
|
|
|
First Quarter
2008
|
|
|
CASH PROVIDED BY (USED FOR) OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
$
|
114
|
|
$
|
80
|
(a)
|
$
|
66
|
(b)
|
$
|
57
|
(a)
|
$
|
19
|
(b)
|
|
Working capital
|
|
(34
|
)
|
|
(19
|
)
|
|
(20
|
)(c)
|
|
(7
|
)(c)
|
|
(358
|
)(c)
|
|
|
|
80
|
|
|
61
|
|
|
46
|
|
|
50
|
|
|
(339
|
)
|
|
CASH PROVIDED BY (USED FOR) INVESTING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(19
|
)
|
|
(48
|
)
|
|
(40
|
)
|
|
(42
|
)
|
|
(34
|
)
|
|
Acquisition, net of cash acquired
|
|
––
|
|
|
––
|
|
|
(57
|
)
|
|
––
|
|
|
––
|
|
|
Other
|
|
(1
|
)
|
|
––
|
|
|
(2
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
|
|
(20
|
)
|
|
(48
|
)
|
|
(99
|
)
|
|
(45
|
)
|
|
(35
|
)
|
|
CASH PROVIDED BY (USED FOR) FINANCING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends to shareholders
|
|
(10
|
)
|
|
(11
|
)
|
|
(11
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
Net change in debt
|
|
(40
|
)
|
|
(1
|
)
|
|
68
|
|
|
15
|
|
|
204
|
|
|
Fees related to special purpose entities
|
|
(15
|
)
|
|
––
|
|
|
––
|
|
|
––
|
|
|
––
|
|
|
Other
|
|
(11
|
)
|
|
(7
|
)
|
|
3
|
|
|
(3
|
)
|
|
(10
|
)
|
|
|
|
(76
|
)
|
|
(19
|
)
|
|
60
|
|
|
2
|
|
|
183
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(17
|
)
|
|
(9
|
)
|
|
6
|
|
|
6
|
|
|
(189
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
41
|
|
|
50
|
|
|
44
|
|
|
38
|
|
|
227
|
|
|
Cash and cash equivalents at end of period
|
$
|
24
|
|
$
|
41
|
|
$
|
50
|
|
$
|
44
|
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
$
|
51
|
|
$
|
55
|
|
$
|
51
|
|
$
|
50
|
|
$
|
50
|
|
|
|
|
(a) Includes $15 million of voluntary, discretionary
contributions to our defined benefit plan in second and fourth
quarter 2008.
|
|
(b) Includes payments related to our 2007
transformation plan of $11 million in third quarter 2008 and $39
million in first quarter 2008.
|
|
(c) Includes payments related to our 2007
transformation plan of $20 million in third quarter 2008, $1
million in second quarter 2008 and $276 million in first quarter
2008.
|
|
TEMPLE-INLAND INC. AND SUBSIDIARIES
REVENUES AND UNIT SALES, EXCLUDING JOINT VENTURE OPERATIONS
(Preliminary and Unaudited)
|
|
|
|
First Quarter
|
|
|
|
2009
|
|
|
2008
|
|
|
|
(Dollars in millions)
|
|
Revenues
|
|
|
|
|
|
|
Corrugated packaging
|
|
|
|
|
|
|
Corrugated packaging
|
$
|
751
|
|
$
|
737
|
|
Paperboard (a) (b)
|
|
39
|
|
|
39
|
|
Total corrugated packaging
|
$
|
790
|
|
$
|
776
|
|
Building products
|
|
|
|
|
|
|
Lumber
|
$
|
46
|
|
$
|
53
|
|
Particleboard
|
|
38
|
|
|
43
|
|
Gypsum wallboard
|
|
38
|
|
|
34
|
|
Medium density fiberboard
|
|
18
|
|
|
19
|
|
Fiberboard
|
|
3
|
|
|
9
|
|
Other
|
|
8
|
|
|
10
|
|
Total building products
|
$
|
151
|
|
$
|
168
|
|
|
|
|
|
|
|
|
Unit Sales
|
|
|
|
|
|
|
Corrugated packaging
|
|
|
|
|
|
|
Corrugated packaging, thousands of tons
|
|
829
|
|
|
827
|
|
Paperboard, thousands of tons (a) (b)
|
|
89
|
|
|
82
|
|
Total, thousands of tons
|
|
918
|
|
|
909
|
|
Building products
|
|
|
|
|
|
|
Lumber, mbf
|
|
188
|
|
|
200
|
|
Particleboard, msf
|
|
107
|
|
|
120
|
|
Gypsum wallboard, msf
|
|
283
|
|
|
280
|
|
Medium density fiberboard, msf
|
|
34
|
|
|
38
|
|
Fiberboard, msf
|
|
17
|
|
|
50
|
(a) Paperboard includes containerboard and light-weight
gypsum facing paper.
(b) Comparisons of revenue and unit sales of paperboard are
affected by the July 25, 2008 purchase of our partner’s interest in
Premier Boxboard Limited LLC.
|
TEMPLE-INLAND INC. AND SUBSIDIARIES
CALCULATION OF NON-GAAP FINANCIAL MEASURES
(Preliminary and Unaudited)
|
|
|
|
|
First
Quarter
|
|
|
First
Quarter
|
|
|
Fourth
Quarter
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
|
|
|
(In millions, except per share)
|
|
|
NET INCOME (LOSS) EXCLUDING SPECIAL
ITEMS
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) in accordance with GAAP
|
$
|
35
|
|
$
|
(13
|
)
|
$
|
(6
|
)
|
|
Special items, after-tax:
|
|
|
|
|
|
|
|
|
|
|
Facility closures and headcount reductions
|
|
(2
|
)
|
|
––
|
|
|
5
|
|
|
Gains related to purchase and retirement of long-term debt
|
|
6
|
|
|
––
|
|
|
––
|
|
|
Litigation and other
|
|
(1
|
)
|
|
3
|
|
|
3
|
|
|
2007 transformation plan
|
|
––
|
|
|
(11
|
)
|
|
––
|
|
|
Adjustment due to change in annual tax rate to 38 percent in
fourth quarter 2008
|
|
––
|
|
|
––
|
|
|
10
|
|
|
Total special items, after-tax
|
|
3
|
|
|
(8
|
)
|
|
18
|
|
|
Net income (loss), excluding special items
|
$
|
32
|
|
$
|
(5
|
)
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), per share, in accordance with GAAP
|
$
|
0.33
|
|
$
|
(0.12
|
)
|
$
|
(0.06
|
)
|
|
Special items, after-tax, per share:
|
|
|
|
|
|
|
|
|
|
|
Facility closures and headcount reductions
|
|
(0.02
|
)
|
|
––
|
|
|
0.05
|
|
|
Gains related to purchase and retirement of long-term debt
|
|
0.06
|
|
|
––
|
|
|
––
|
|
|
Litigation and other
|
|
(0.01
|
)
|
|
0.03
|
|
|
0.02
|
|
|
2007 transformation plan
|
|
––
|
|
|
(0.10
|
)
|
|
––
|
|
|
Adjustment due to change in annual tax rate to 38 percent in
fourth quarter 2008
|
|
––
|
|
|
––
|
|
|
0.10
|
|
|
Total special items, after-tax
|
|
0.03
|
|
|
(0.07
|
)
|
|
0.17
|
|
|
Net income (loss) per share, excluding special items
|
$
|
0.30
|
|
$
|
(0.05
|
)
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average basic shares outstanding
|
|
106.7
|
|
|
106.7
|
|
|
106.7
|
|
|
Average diluted shares outstanding
|
|
106.7
|
|
|
107.6
|
|
|
106.7
|
|
Source: Temple-Inland Inc.
Temple-Inland Inc.
Chris Mathis, 512-434-3766
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