News Release| Buckeye’s Second Quarter FY 2012 Results |
2Q Net sales up 8% versus Year-Ago Quarter
Gross Margin of 24.0% up from 21.2% in Year Ago Quarter
Adjusted 2Q EPS of $0.69 compared to $0.50 in 2Q-FY11
Announced Closure of Cotton Linter Pulp Production Line in
Americana, Brazil
Announced Sale of Non-Core King, N.C. Converting Business
MEMPHIS, Tenn.--(BUSINESS WIRE)--Jan. 24, 2012--
Buckeye Technologies Inc. (NYSE:BKI) today announced second quarter
adjusted net income* of $27.9 million or $0.69 per share, which excludes
after-tax non-cash asset impairment charges of $29.7 million, or $0.74
per share, related to the announced closure of the cotton linter pulp
production line in Brazil and sale of our converting business in North
Carolina, and income tax expense of $3.6 million or $0.09 per share
related to cellulosic biofuel credits. Adjusted net income* rose 37% as
compared to the prior year period’s $20.3 million, or $0.50 per share,
which excluded after tax costs of $3.2 million, or $0.08 per share, from
early extinguishment of debt, restructuring and accrued interest related
to cellulosic biofuel credits.
Net sales of $227 million were up 8% versus last year’s second quarter
sales of $210 million. Sales benefited from higher selling prices and
increased specialty wood fibers shipment volume. The $0.19 increase in
adjusted EPS*, compared to the prior year period, was driven by these
same factors. The prior year quarter also benefited by $0.05 per share
from the final insurance settlement related to June 2010 power outage at
our Florida specialty wood pulp facility. Aside from higher cotton
linter costs, which were up about 30% in North America over the year ago
quarter, cost inflation for chemicals, transportation and other raw
materials was modest with energy prices stable.
Comparing the second quarter to the first quarter of fiscal 2012, sales
were down $13 million or 5%. Nonwovens shipment volume was down 10% due
to seasonal weakness in Europe and lower North American volume.
Specialty cotton shipment volume was also down 11% due to the winding
down of operations at Americana and supply chain inventory adjustments
in the LED TV end-markets. For specialty wood, shipment volume was up 2%
but this was offset by the impact of lower fluff pulp prices. Adjusted
Operating Income* was off $1.4 million due to lower shipment volume and
reduced fluff pulp prices, although gross margin improved from 23.7% to
24.0% and selling, research and administrative expenses were down $1.0
million compared to the first quarter. Adjusted EPS* of $0.69 was down
$0.05 compared to $0.74 in the first quarter due to lower operating
income ($0.02), a higher tax rate ($0.02) and foreign exchange gain/loss
($0.01).
Chairman and Chief Executive Officer John B. Crowe said, “We were
pleased with our second quarter fiscal 2012 financial results, which
exceeded the expectations we shared during our last earnings call in
October. The key drivers of year over year improvements continue to be
strong markets and selling prices, better capacity utilization at our
Memphis specialty cotton fibers plant, and benefits from our cost
improvement initiatives.
“We continue to focus on generating free cash flow and returns on
investment above our cost of capital which we did again in the quarter.
One aspect of this focus is our restructuring efforts. In January, we
announced the closure of our cotton linter pulp production line in
Brazil and continued discussions with multiple parties for the potential
sale of this facility. Also in January, we announced the sale of our
non-core Merfin Systems converting business in North Carolina. These
moves will allow us to redirect cash and management focus from
under-performing or non-core businesses into strategic investment and
growth opportunities. Key examples of that are our Foley energy project,
which we expect to complete in the third quarter of fiscal year 2012,
and the Foley specialty wood pulp expansion project, which is on track
for completion at the end of calendar year 2012. Overall our business
has good momentum.”
Buckeye has scheduled a conference call for Wednesday morning, January
25, at 11:00 a.m. ET to discuss second quarter performance. Persons
interested in listening by telephone may dial in at (888) 287-5563 within
the United States. International callers should dial (719)
325-2436. 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, restructuring cost and early debt
extinguishment cost.
|
|
|
|
|
|
2nd Quarter
|
|
1st Quarter
|
|
($ in Millions)
|
|
|
2012
|
|
2011
|
|
2012
|
|
Operating income
|
|
|
|
|
|
|
|
|
Operating income in accordance with GAAP
|
|
|
|
(10.5
|
)
|
|
|
31.6
|
|
|
|
44.0
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
---
|
|
|
|
0.6
|
|
|
|
---
|
|
|
Asset and Goodwill impairment
|
|
|
|
53.1
|
|
|
|
---
|
|
|
|
---
|
|
|
Adjusted operating income
|
|
|
|
42.6
|
|
|
|
32.2
|
|
|
|
44.0
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
Net income in accordance with GAAP
|
|
|
|
(5.4
|
)
|
|
|
17.1
|
|
|
|
41.1
|
|
|
Special items, after-tax:
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
---
|
|
|
|
0.5
|
|
|
|
---
|
|
|
AFMC / CBC
|
|
|
|
3.6
|
|
|
|
0.4
|
|
|
|
(11.2
|
)
|
|
Early Extinguishment of Debt
|
|
|
|
|
|
2.3
|
|
|
|
|
Asset and Goodwill Impairment
|
|
|
|
29.7
|
|
|
|
---
|
|
|
|
---
|
|
|
Adjusted net income
|
|
|
|
27.9
|
|
|
|
20.3
|
|
|
|
29.9
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (EPS)
|
|
|
|
|
|
|
|
|
EPS in accordance with GAAP
|
|
|
|
($0.14
|
)
|
|
$
|
0.42
|
|
|
$
|
1.02
|
|
|
Special items, after-tax, per share:
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
---
|
|
|
|
0.01
|
|
|
|
---
|
|
|
AFMC / CBC
|
|
|
|
0.09
|
|
|
|
0.01
|
|
|
|
(0.28
|
)
|
|
Early Extinguishment of Debt
|
|
|
|
|
|
0.06
|
|
|
|
|
Asset and Goodwill Impairment
|
|
|
|
0.74
|
|
|
|
---
|
|
|
|
---
|
|
|
Adjusted EPS
|
|
|
$
|
0.69
|
|
|
$
|
0.50
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
24.9
|
|
|
|
23.9
|
|
|
|
28.5
|
|
|
Net cash used in investing activities
|
|
|
|
(13.7
|
)
|
|
|
(19.5
|
)
|
|
|
(10.8
|
)
|
|
Free Cash Flow
|
|
|
|
11.2
|
|
|
|
4.4
|
|
|
|
17.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUCKEYE TECHNOLOGIES INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
December 31, 2011
|
|
September 30, 2011
|
|
December 31, 2010
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
227,097
|
|
|
$
|
240,067
|
|
|
$
|
209,516
|
|
|
$
|
467,164
|
|
|
$
|
411,591
|
|
|
Cost of goods sold
|
|
|
|
172,662
|
|
|
|
183,215
|
|
|
|
165,090
|
|
|
|
355,877
|
|
|
|
330,852
|
|
|
Gross margin
|
|
|
|
54,435
|
|
|
|
56,852
|
|
|
|
44,426
|
|
|
|
111,287
|
|
|
|
80,739
|
|
|
Gross margin as a percentage of sales
|
|
|
|
24.0
|
%
|
|
|
23.7
|
%
|
|
|
21.2
|
%
|
|
|
23.8
|
%
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, research and administrative expenses
|
|
|
|
11,348
|
|
|
|
12,339
|
|
|
|
11,836
|
|
|
|
23,687
|
|
|
|
23,507
|
|
|
Amortization of intangibles and other
|
|
|
|
500
|
|
|
|
496
|
|
|
|
486
|
|
|
|
996
|
|
|
|
965
|
|
|
Asset impairment loss
|
|
|
|
50,711
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50,711
|
|
|
|
-
|
|
|
Goodwill impairment loss
|
|
|
|
2,425
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,425
|
|
|
|
-
|
|
|
Restructuring costs
|
|
|
|
-
|
|
|
|
-
|
|
|
|
570
|
|
|
|
-
|
|
|
|
1,122
|
|
|
Other operating income
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(39
|
)
|
|
|
-
|
|
|
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(10,549
|
)
|
|
|
44,017
|
|
|
|
31,573
|
|
|
|
33,468
|
|
|
|
55,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense and amortization of debt costs
|
|
|
|
(898
|
)
|
|
|
(3,311
|
)
|
|
|
(1,717
|
)
|
|
|
(4,209
|
)
|
|
|
(5,314
|
)
|
|
Early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,649
|
)
|
|
|
-
|
|
|
|
(3,649
|
)
|
|
Foreign exchange and other
|
|
|
|
(19
|
)
|
|
|
502
|
|
|
|
(199
|
)
|
|
|
483
|
|
|
|
(813
|
)
|
|
Income (loss) before income taxes
|
|
|
|
(11,466
|
)
|
|
|
41,208
|
|
|
|
26,008
|
|
|
|
29,742
|
|
|
|
45,415
|
|
|
Income tax expense (benefit)
|
|
|
|
(6,027
|
)
|
|
|
101
|
|
|
|
8,955
|
|
|
|
(5,926
|
)
|
|
|
(36,063
|
)
|
|
Net income (loss)
|
|
|
$
|
(5,439
|
)
|
|
$
|
41,107
|
|
|
$
|
17,053
|
|
|
$
|
35,668
|
|
|
$
|
81,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of diluted earnings per share under the two-class
method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders
|
|
|
$
|
(5,439
|
)
|
|
$
|
41,107
|
|
|
$
|
17,053
|
|
|
$
|
35,668
|
|
|
$
|
81,478
|
|
|
Less: Distributed and undistributed income allocated to
participating securities (nonvested stock)
|
|
|
|
77
|
|
|
|
(606
|
)
|
|
|
(312
|
)
|
|
|
(520
|
)
|
|
|
(1,495
|
)
|
|
Distributed and undistributed income available to shareholders
|
|
|
$
|
(5,362
|
)
|
|
$
|
40,501
|
|
|
$
|
16,741
|
|
|
$
|
35,148
|
|
|
$
|
79,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
39,719
|
|
|
|
39,839
|
|
|
|
39,984
|
|
|
|
39,779
|
|
|
|
39,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
$
|
(0.14
|
)
|
|
$
|
1.02
|
|
|
$
|
0.42
|
|
|
$
|
0.88
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUCKEYE TECHNOLOGIES INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
September 30
|
|
June 30
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
35,998
|
|
$
|
32,794
|
|
$
|
30,494
|
|
Accounts receivable, net
|
|
|
|
136,571
|
|
|
135,322
|
|
|
140,582
|
|
Inventories
|
|
|
|
106,756
|
|
|
101,588
|
|
|
91,024
|
|
Deferred income taxes and other
|
|
|
|
14,328
|
|
|
11,396
|
|
|
12,216
|
|
Total current assets
|
|
|
|
293,653
|
|
|
281,100
|
|
|
274,316
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
476,020
|
|
|
514,743
|
|
|
530,468
|
|
Goodwill
|
|
|
|
-
|
|
|
2,425
|
|
|
2,425
|
|
Deferred income taxes
|
|
|
|
48,670
|
|
|
44,970
|
|
|
32,741
|
|
Intellectual property and other, net
|
|
|
|
14,138
|
|
|
29,026
|
|
|
29,901
|
|
Total assets
|
|
|
$
|
832,481
|
|
$
|
872,264
|
|
$
|
869,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
$
|
32,846
|
|
$
|
37,728
|
|
$
|
41,437
|
|
Accrued expenses
|
|
|
|
40,323
|
|
|
60,418
|
|
|
71,722
|
|
Other current liabilities
|
|
|
|
863
|
|
|
-
|
|
|
-
|
|
Total current liabilities
|
|
|
|
74,032
|
|
|
98,146
|
|
|
113,159
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
86,840
|
|
|
90,351
|
|
|
96,921
|
|
Deferred income taxes
|
|
|
|
5,531
|
|
|
5,438
|
|
|
7,968
|
|
Other liabilities
|
|
|
|
85,486
|
|
|
87,374
|
|
|
72,506
|
|
Stockholders' equity
|
|
|
|
580,592
|
|
|
590,955
|
|
|
579,297
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
832,481
|
|
$
|
872,264
|
|
$
|
869,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUCKEYE TECHNOLOGIES INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
December 31, 2011
|
|
September 30, 2011
|
|
December 31, 2010
|
|
December 31, 2011
|
|
December 31, 2010
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(5,439
|
)
|
|
$
|
41,107
|
|
|
$
|
17,053
|
|
|
$
|
35,668
|
|
|
$
|
81,478
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment loss
|
|
|
|
50,711
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50,711
|
|
|
|
-
|
|
|
|
Depreciation
|
|
|
|
12,791
|
|
|
|
13,026
|
|
|
|
12,132
|
|
|
|
25,817
|
|
|
|
24,106
|
|
|
|
Amortization
|
|
|
|
655
|
|
|
|
651
|
|
|
|
641
|
|
|
|
1,306
|
|
|
|
1,318
|
|
|
|
Loss on early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,649
|
|
|
|
-
|
|
|
|
3,649
|
|
|
|
Loss on goodwill impairment
|
|
|
|
2,425
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,425
|
|
|
|
-
|
|
|
|
Deferred income taxes
|
|
|
|
(2,509
|
)
|
|
|
(13,632
|
)
|
|
|
(420
|
)
|
|
|
(16,141
|
)
|
|
|
(65,855
|
)
|
|
|
Noncurrent AFMC refund payable
|
|
|
|
(1,567
|
)
|
|
|
15,462
|
|
|
|
-
|
|
|
|
13,895
|
|
|
|
41,144
|
|
|
|
Loss on disposal of equipment
|
|
|
|
483
|
|
|
|
283
|
|
|
|
712
|
|
|
|
766
|
|
|
|
811
|
|
|
|
Insurance proceeds applied to capital investments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(161
|
)
|
|
|
-
|
|
|
|
(161
|
)
|
|
|
Provision for bad debts
|
|
|
|
49
|
|
|
|
555
|
|
|
|
(24
|
)
|
|
|
604
|
|
|
|
88
|
|
|
|
Excess tax benefit from stock based compensation
|
|
|
|
(788
|
)
|
|
|
(765
|
)
|
|
|
(435
|
)
|
|
|
(1,553
|
)
|
|
|
(445
|
)
|
|
|
Stock-based compensation expense
|
|
|
|
1,245
|
|
|
|
966
|
|
|
|
1,200
|
|
|
|
2,211
|
|
|
|
2,135
|
|
|
|
Other
|
|
|
|
(244
|
)
|
|
|
(112
|
)
|
|
|
88
|
|
|
|
(356
|
)
|
|
|
(44
|
)
|
|
|
Change in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
1,999
|
|
|
|
(1,462
|
)
|
|
|
7,838
|
|
|
|
537
|
|
|
|
6,462
|
|
|
|
|
Income tax and AFMC receivable
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,924
|
|
|
|
-
|
|
|
|
51,767
|
|
|
|
|
Inventories
|
|
|
|
(6,346
|
)
|
|
|
(12,447
|
)
|
|
|
(7,065
|
)
|
|
|
(18,793
|
)
|
|
|
(16,814
|
)
|
|
|
|
Other assets
|
|
|
|
(3,247
|
)
|
|
|
359
|
|
|
|
932
|
|
|
|
(2,888
|
)
|
|
|
1,829
|
|
|
|
|
Accounts payable and other liabilities
|
|
|
|
(25,288
|
)
|
|
|
(15,527
|
)
|
|
|
(20,201
|
)
|
|
|
(40,815
|
)
|
|
|
(25,565
|
)
|
|
Net cash provided by operating activities
|
|
|
|
24,930
|
|
|
|
28,464
|
|
|
|
23,863
|
|
|
|
53,394
|
|
|
|
105,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment
|
|
|
|
(13,586
|
)
|
|
|
(10,713
|
)
|
|
|
(19,520
|
)
|
|
|
(24,299
|
)
|
|
|
(31,436
|
)
|
|
|
Proceeds from insurance settlement related to capital
investments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
161
|
|
|
|
-
|
|
|
|
161
|
|
|
|
Other
|
|
|
|
(75
|
)
|
|
|
(51
|
)
|
|
|
(139
|
)
|
|
|
(126
|
)
|
|
|
(207
|
)
|
|
Net cash used in investing activities
|
|
|
|
(13,661
|
)
|
|
|
(10,764
|
)
|
|
|
(19,498
|
)
|
|
|
(24,425
|
)
|
|
|
(31,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings (payments) under line of credit
|
|
|
|
(3,511
|
)
|
|
|
(6,570
|
)
|
|
|
139,026
|
|
|
|
(10,081
|
)
|
|
|
66,496
|
|
|
|
Payments on long term debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(140,000
|
)
|
|
|
-
|
|
|
|
(140,000
|
)
|
|
|
Payments for debt issuance costs
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,586
|
)
|
|
|
-
|
|
|
|
(2,586
|
)
|
|
|
Payments related to early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,984
|
)
|
|
|
-
|
|
|
|
(1,984
|
)
|
|
|
Excess tax benefit from stock based compensation
|
|
|
|
788
|
|
|
|
765
|
|
|
|
435
|
|
|
|
1,553
|
|
|
|
445
|
|
|
|
Purchase of treasury shares
|
|
|
|
(1,941
|
)
|
|
|
(8,648
|
)
|
|
|
-
|
|
|
|
(10,589
|
)
|
|
|
-
|
|
|
|
Net proceeds from sale of equity interests
|
|
|
|
1,002
|
|
|
|
638
|
|
|
|
2,338
|
|
|
|
1,640
|
|
|
|
2,379
|
|
|
|
Payment of dividend
|
|
|
|
(2,374
|
)
|
|
|
(2,410
|
)
|
|
|
(1,605
|
)
|
|
|
(4,784
|
)
|
|
|
(3,222
|
)
|
|
|
Other
|
|
|
|
-
|
|
|
|
(469
|
)
|
|
|
-
|
|
|
|
(469
|
)
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
|
(6,036
|
)
|
|
|
(16,694
|
)
|
|
|
(4,376
|
)
|
|
|
(22,730
|
)
|
|
|
(78,472
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency rate fluctuations on cash
|
|
|
|
(2,029
|
)
|
|
|
1,294
|
|
|
|
2,763
|
|
|
|
(735
|
)
|
|
|
7,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
|
3,204
|
|
|
|
2,300
|
|
|
|
2,752
|
|
|
|
5,504
|
|
|
|
3,031
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
32,794
|
|
|
|
30,494
|
|
|
|
22,400
|
|
|
|
30,494
|
|
|
|
22,121
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
35,998
|
|
|
$
|
32,794
|
|
|
$
|
25,152
|
|
|
$
|
35,998
|
|
|
$
|
25,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUCKEYE TECHNOLOGIES INC.
|
|
SUPPLEMENTAL FINANCIAL DATA
|
|
(unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
SEGMENT RESULTS
|
|
|
December 31, 2011
|
|
September 30, 2011
|
|
December 31, 2010
|
|
December 31, 2011
|
|
December 31, 2010
|
|
Specialty Fibers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
176,660
|
|
|
$
|
183,422
|
|
|
$
|
155,323
|
|
|
$
|
360,082
|
|
|
$
|
298,115
|
|
|
|
Operating income (a)
|
|
|
|
41,920
|
|
|
|
43,831
|
|
|
|
34,445
|
|
|
|
85,751
|
|
|
|
56,585
|
|
|
|
Depreciation and amortization (b)
|
|
|
|
8,325
|
|
|
|
8,359
|
|
|
|
8,160
|
|
|
|
16,684
|
|
|
|
15,947
|
|
|
|
Total assets
|
|
|
|
482,236
|
|
|
|
520,636
|
|
|
|
498,015
|
|
|
|
482,236
|
|
|
|
498,015
|
|
|
|
Capital expenditures
|
|
|
|
11,510
|
|
|
|
8,985
|
|
|
|
17,362
|
|
|
|
20,495
|
|
|
|
28,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonwoven Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
58,307
|
|
|
$
|
64,685
|
|
|
$
|
62,427
|
|
|
$
|
122,992
|
|
|
$
|
130,547
|
|
|
|
Operating income (a)
|
|
|
|
2,765
|
|
|
|
2,328
|
|
|
|
817
|
|
|
|
5,093
|
|
|
|
5,420
|
|
|
|
Depreciation and amortization (b)
|
|
|
|
4,009
|
|
|
|
4,217
|
|
|
|
3,506
|
|
|
|
8,226
|
|
|
|
7,233
|
|
|
|
Total assets
|
|
|
|
193,950
|
|
|
|
198,576
|
|
|
|
211,874
|
|
|
|
193,950
|
|
|
|
211,874
|
|
|
|
Capital expenditures
|
|
|
|
1,674
|
|
|
|
1,689
|
|
|
|
1,789
|
|
|
|
3,363
|
|
|
|
2,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
(7,870
|
)
|
|
$
|
(8,040
|
)
|
|
$
|
(8,234
|
)
|
|
$
|
(15,910
|
)
|
|
$
|
(17,071
|
)
|
|
|
Operating income (loss) (a)
|
|
|
|
(55,234
|
)
|
|
|
(2,142
|
)
|
|
|
(3,689
|
)
|
|
|
(57,376
|
)
|
|
|
(6,814
|
)
|
|
|
Depreciation and amortization (b)
|
|
|
|
957
|
|
|
|
946
|
|
|
|
953
|
|
|
|
1,903
|
|
|
|
1,892
|
|
|
|
Total assets
|
|
|
|
152,595
|
|
|
|
153,052
|
|
|
|
134,657
|
|
|
|
152,595
|
|
|
|
134,657
|
|
|
|
Capital expenditures
|
|
|
|
402
|
|
|
|
39
|
|
|
|
369
|
|
|
|
441
|
|
|
|
600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
227,097
|
|
|
$
|
240,067
|
|
|
$
|
209,516
|
|
|
$
|
467,164
|
|
|
$
|
411,591
|
|
|
|
Operating income (loss) (a)
|
|
|
|
(10,549
|
)
|
|
|
44,017
|
|
|
|
31,573
|
|
|
|
33,468
|
|
|
|
55,191
|
|
|
|
Depreciation and amortization (b)
|
|
|
|
13,291
|
|
|
|
13,522
|
|
|
|
12,619
|
|
|
|
26,813
|
|
|
|
25,072
|
|
|
|
Total assets
|
|
|
|
828,781
|
|
|
|
872,264
|
|
|
|
844,546
|
|
|
|
828,781
|
|
|
|
844,546
|
|
|
|
Capital expenditures
|
|
|
|
13,586
|
|
|
|
10,713
|
|
|
|
19,520
|
|
|
|
24,299
|
|
|
|
31,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Six Months Ended
|
|
ADJUSTED EBITDA
|
|
|
December 31, 2011
|
|
September 30, 2011
|
|
December 31, 2010
|
|
December 31, 2011
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(5,439
|
)
|
|
$
|
41,107
|
|
|
$
|
17,053
|
|
|
$
|
35,668
|
|
|
$
|
81,478
|
|
|
Income tax expense
|
|
|
|
(6,027
|
)
|
|
|
101
|
|
|
|
8,955
|
|
|
|
(5,926
|
)
|
|
|
(36,063
|
)
|
|
Interest expense
|
|
|
|
868
|
|
|
|
3,348
|
|
|
|
1,589
|
|
|
|
4,216
|
|
|
|
5,022
|
|
|
Amortization of debt costs
|
|
|
|
155
|
|
|
|
155
|
|
|
|
155
|
|
|
|
310
|
|
|
|
353
|
|
|
Early extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,649
|
|
|
|
-
|
|
|
|
3,649
|
|
|
Depreciation, depletion and amortization
|
|
|
|
13,291
|
|
|
|
13,522
|
|
|
|
12,618
|
|
|
|
26,813
|
|
|
|
25,071
|
|
|
EBITDA
|
|
|
|
2,848
|
|
|
|
58,233
|
|
|
|
44,019
|
|
|
|
61,081
|
|
|
|
79,510
|
|
|
Goodwill and asset impairments
|
|
|
|
53,136
|
|
|
|
-
|
|
|
|
-
|
|
|
|
53,136
|
|
|
|
-
|
|
|
Non cash charges
|
|
|
|
481
|
|
|
|
300
|
|
|
|
712
|
|
|
|
781
|
|
|
|
812
|
|
|
Adjusted EBITDA
|
|
|
$
|
56,465
|
|
|
$
|
58,533
|
|
|
$
|
44,731
|
|
|
$
|
114,998
|
|
|
$
|
80,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
Source: Buckeye Technologies Inc.
Buckeye Technologies Inc.
Steve Dean, 901-320-8352
Senior Vice
President and Chief Financial Officer
or
Investor Relations:
Daryn
Abercrombie, 901-320-8908
www.bkitech.com
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|
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