BOISE, Idaho, Nov. 3 /PRNewswire-FirstCall/ --
Boise Inc. (NYSE:BZ) today reported net income of $48.2 million or $0.57 per diluted share for third quarter 2009, compared with third quarter 2008 net income of $4.4 million or $0.06 per diluted share and second quarter 2009 net income of $50.9 million or $0.60 per diluted share.
EBITDA excluding special items was $66.2 million for third quarter 2009, compared with $77.9 million for third quarter 2008 and $53.0 million for second quarter 2009.
FINANCIAL HIGHLIGHTS
(in millions, except per-share data)
------- ------- -------
3Q 2009 3Q 2008 2Q 2009
------- ------- -------
Sales $508.3 $633.1 $479.4
Income from operations $93.5 $30.1 $96.6
Net income (loss) $48.2 $4.4 $50.9
Net income (loss) per share basic $0.61 $0.06 $0.65
Net income (loss) per share diluted $0.57 $0.06 $0.60
EBITDA (a) $128.0 $61.1 $130.6
EBITDA excluding special items (a) $66.2 $77.9 $53.0
(a) 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."
"We continued to deliver solid earnings and cash flow in the third quarter and strengthened our balance sheet through our debt restructuring in October," said Alexander Toeldte, President and Chief Executive Officer of Boise Inc. "We experienced moderating costs, good demand in our core office papers and agricultural-based packaging products, and continued to see growth in our label and release, flexible packaging, and premium office paper markets. We are now in compliance with the NYSE listing standards, have a more flexible debt structure, and have a clear focus on our continued mission to generate earnings and cash."
Sales
Total sales for third quarter 2009 were $508.3 million, a decrease of $124.8 million, or 20%, from $633.1 million for third quarter 2008 and up 6% from second quarter 2009 sales of $479.4 million.
Paper segment sales during third quarter 2009 decreased $65.0 million, or 15%, to $366.0 million from $431.0 million for third quarter 2008, driven by 11% lower sales volumes and 1% lower net sales prices for uncoated freesheet. In first quarter 2009, we completed the downsizing of our mill in St. Helens, Oregon, which eliminated 13% of our annual uncoated freesheet capacity. Paper segment sales in third quarter 2009 increased by $9.6 million, or 3%, from second quarter 2009, driven by higher sales volumes, offset partially by lower net sales prices.
Packaging segment sales during third quarter 2009 decreased $62.4 million, or 29%, to $150.5 million from $212.9 million for third quarter 2008. Lower newsprint volumes due to the indefinite idling of our DeRidder #2 newsprint machine and lower net sales prices for newsprint and linerboard contributed to the decline. This was offset partially by increased linerboard sales volumes to third parties. Packaging segment sales increased $20.2 million, or 16%, from second quarter 2009 due to higher sales volumes across all products, offset partially by lower net selling prices for newsprint, linerboard, and corrugated products.
Prices and Volumes
Average net selling prices of uncoated freesheet papers declined $14 per ton, or 1%, to $941 per ton during third quarter 2009 compared with third quarter 2008 and declined $17 per ton, or 2%, from second quarter 2009. Uncoated freesheet sales volumes were 325,000 tons during third quarter 2009, a decline of 11% versus the prior year period, due to reduced capacity and lower demand. Uncoated freesheet sales volumes increased 3% from second quarter 2009 on reduced market downtime, improved demand, and higher sales volumes of office and printing and converting papers. Combined sales volumes of premium office, label and release, and flexible packaging papers (which represented 27% of our third quarter 2009 uncoated freesheet sales volumes) increased by 2% from the prior year.
Corrugated container and sheet prices were flat at $58 per msf in third quarter 2009 over prices for these products during the third quarter 2008 and decreased $1 per msf, or 2%, compared with second quarter 2009 prices. Sales volumes for corrugated containers and sheets were 1.6 million msf in third quarter 2009, a decline of 4% from third quarter 2008, due primarily to sluggish industrial markets, which resulted in lower sales volumes from our sheet feeder plant in Texas. Corrugated products sales volumes increased 8% from second quarter 2009 on improving seasonal agricultural and food sector demand in our Pacific Northwest corrugated plants.
Linerboard net selling prices to third parties declined $108 per ton, or 28%, to $284 per ton in third quarter 2009 from $392 per ton in the third quarter 2008 and declined $18 per ton, or 6%, from second quarter 2009, due to soft demand, particularly in export markets. Linerboard sales volumes to third parties were 77,000 tons, an increase of 24% compared with the third quarter 2008 and an increase of 41% from second quarter 2009. In the third quarter 2008, we took production downtime as a result of hurricanes Gustav and Ike, which reduced sales volumes during that period. In the second quarter 2009, we took market downtime to balance production with lower demand at our mill in DeRidder, Louisiana.
Input Costs
Total fiber, energy, and chemical costs for third quarter 2009 were $205.8 million, a decrease of $97.9 million, or 32%, from costs of $303.7 million for third quarter 2008. Much of the decline was driven by reduced consumption as a result of the restructuring of our mill in St. Helens, Oregon, and the idling of our DeRidder #2 machine at our mill in DeRidder, Louisiana. Total fiber, energy, and chemical costs for third quarter 2009 increased $22.1 million, or 12%, from costs of $183.7 million for second quarter 2009.
INPUT COST SUMMARY
(in millions)
------- ------- -------
3Q 2009 3Q 2008 2Q 2009
------- ------- -------
Fiber $108.2 $136.4 $92.2
Energy $41.9 $95.6 $40.5
Chemicals $55.7 $71.7 $51.0
Total $205.8 $303.7 $183.7
Fiber costs during third quarter 2009 were $108.2 million, a decrease of $28.2 million, or 21%, from $136.4 million in third quarter 2008; this was due to lower fiber prices and reduced consumption due to lower demand and production capacity as a result of the St. Helens mill downsizing. Fiber costs increased $16.0 million, or 17%, from second quarter 2009 due primarily to increased consumption as a result of higher production volumes.
Energy costs in third quarter 2009 decreased $53.7 million, or 56%, to $41.9 million compared with $95.6 million in the same quarter a year ago and were flat from second quarter 2009.
Chemical costs in third quarter 2009 were $55.7 million, a decrease of $16.0 million, or 22%, compared with $71.7 million in the same quarter a year ago due to lower consumption and prices and increased $4.6 million, or 9% compared with second quarter 2009 due to increased sales volumes, offset partially by lower chemical prices.
Debt Restructuring
In October, we amended our secured debt credit agreements and issued $300.0 million of senior unsecured notes in an offering as part of a debt restructuring to increase financial flexibility, extend debt maturities, simplify our capital structure, and reduce overall debt. The notes are due in November 2017 and bear interest at a rate of 9%. The proceeds from this offering and cash on hand were used to repay $75.0 million of our Tranche A and Tranche B term loan facilities at par; repurchase all of our $260.7 million second lien term loans at 113% of face value; and exercise the option we entered into on August 4, 2009, to repurchase and retire the $74.8 million notes payable at 70% of face value.
Alternative Fuel Mixture Credit
During the three months ended September 30, 2009, we recorded $59.6 million of alternative fuel mixture credits, net of associated fees and expenses and before taxes. As of September 30, 2009, we recorded a receivable of $29.2 million for alternative fuel mixture credits. Our first quarter 2009 results do not include any effects of the alternative fuel mixture credits. These credits are scheduled to expire December 31, 2009.
Webcast and Conference Call
Boise Inc. will host a webcast and conference call on Tuesday, November 3, 2009, at 12:00 p.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 832-4451689). 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 November 3 at 1:00 p.m. Eastern through December 3 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 37025622.
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 4,100 employees is committed to delivering excellent value while managing our businesses to sustain environmental resources for future generations. Visit our Web site at http://www.boiseinc.com/.
Basis of Presentation
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 contains 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. For further information about the risks and uncertainties associated with our business, please refer to 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)
Three Months Ended
------------------
September 30 June 30,
------------ --------
2009 2008 2009
---- ---- ----
Sales
Trade $498,812 $610,909 $469,877
Related parties 9,453 22,209 9,490
----- ------ -----
508,265 633,118 479,367
------- ------- -------
Costs and expenses
Materials, labor, and other
operating expenses 401,607 526,731 386,013
Fiber costs from related parties 10,325 21,213 8,933
Depreciation, amortization, and
depletion 32,916 31,426 32,892
Selling and distribution expenses 13,588 13,803 14,024
General and administrative expenses 12,813 9,891 12,691
St. Helens mill restructuring 1,402 - 1,133
Alternative fuel mixture credits, net (59,572) - (75,337)
Other (income) expense, net 1,710 (36) 2,434
----- --- -----
414,789 603,028 382,783
------- ------- -------
Income from operations 93,476 30,090 96,584
------ ------ ------
Foreign exchange gain (loss) 1,597 (449) 1,157
Change in fair value of interest
rate derivatives 125 (306) 627
Interest expense (21,436) (27,484) (21,389)
Interest income 130 153 91
--- --- --
(19,584) (28,086) (19,514)
------- ------- -------
Income before income taxes 73,892 2,004 77,070
Income tax (provision) benefit (25,737) 2,379 (26,187)
------- ----- -------
Net income $48,155 $4,383 $50,883
======= ====== =======
Weighted average common shares
outstanding:
Basic 78,634,920 77,259,947 78,141,637
Diluted 84,240,582 78,438,847 84,253,862
Net income per common share:
Basic $0.61 $0.06 $0.65
Diluted $0.57 $0.06 $0.60
Segment Information
(unaudited, in thousands)
Three Months Ended
-------------------
September 30 June 30,
------------ -------
2009 2008 2009
---- ---- ----
Segment sales
Paper $365,963 $430,973 $356,401
Packaging 150,462 212,886 130,237
Intersegment
eliminations and
other (8,160) (10,741) (7,271)
------ ------- ------
$508,265 $633,118 $479,367
======== ======== ========
Segment income (loss)
Paper* $78,272 $25,304 $84,505
Packaging* 22,290 10,148 20,330
Corporate and Other* (5,489) (5,811) (7,094)
------ ------ ------
95,073 29,641 97,741
------ ------ ------
Change in fair value of
interest rate
derivatives 125 (306) 627
Interest expense (21,436) (27,484) (21,389)
Interest income 130 153 91
--- --- ---
Income (loss) before
income taxes $73,892 $2,004 $77,070
======= ====== =======
EBITDA (a)
Paper* $99,443 $49,378 $105,604
Packaging* 32,966 16,422 31,108
Corporate and Other * (4,420) (4,733) (6,079)
------ ------ ------
$127,989 $61,067 $130,633
======== ======= ========
* The three months ended September 30, 2009, and June 30, 2009, included
$42.9 million and $57.0 million of income recorded in the Paper segment,
$19.4 million and $19.9 million of income recorded in the Packaging
segment, and $2.7 million and $1.6 million of expenses recorded in the
Corporate and Other segment relating to alternative fuel mixture
credits, respectively. These amounts are net of fees and expenses and
before taxes.
Boise Inc.
Consolidated Statements of Income (Loss)
(unaudited, in thousands, except share and per-share data)
Boise Inc. Predecessor
---------- -----------
Nine Months Ended January 1
September 30 Through
------------ February 21,
2009 2008 2008
---- ---- ----
Sales
Trade $1,453,557 $1,423,536 $258,430
Related parties 34,360 55,977 101,490
------ ------ -------
1,487,917 1,479,513 359,920
--------- --------- -------
Costs and expenses
Materials, labor, and
other operating expenses 1,200,759 1,266,250 313,931
Fiber costs from related
parties 24,961 46,857 7,662
Depreciation,
amortization, and
depletion 97,780 76,862 477
Selling and distribution
expenses 41,394 34,563 9,097
General and administrative
expenses 35,877 26,702 6,606
St. Helens mill
restructuring 6,183 - -
Alternative fuel mixture
credits, net (134,909) - -
Other (income) expense, net 4,383 (160) (989)
----- ---- ----
1,276,428 1,451,074 336,784
--------- --------- -------
Income from operations 211,489 28,439 23,136
------- ------ ------
Foreign exchange gain
(loss) 2,076 (1,511) 54
Change in fair value of
interest rate derivatives 620 204 -
Interest expense (64,979) (65,064) (2)
Interest income 275 2,152 161
--- ----- ---
(62,008) (64,219) 213
------- ------- ---
Income (loss) before
income taxes 149,481 (35,780) 23,349
Income tax (provision)
benefit (51,359) 5,742 (563)
------- ----- ----
Net income (loss) $98,122 $(30,038) $22,786
======= ======== =======
Weighted average common
shares outstanding:
Basic 78,093,453 72,418,643 -
Diluted 82,692,945 72,418,643 -
Net income (loss) per common
share:
Basic $1.26 $(0.41) $-
Diluted $1.19 $(0.41) $-
Segment Information
(unaudited, in thousands)
Boise Inc. Predecessor
----------- -----------
Nine Months Ended January 1 Through
September 30 February 21,
------------
2009 2008 2008
---- ---- ----
Segment sales
Paper $1,074,359 $1,014,053 $253,508
Packaging 437,831 489,918 113,485
Intersegment
eliminations and
other (24,273) (24,458) (7,073)
------- ------- ------
$1,487,917 $1,479,513 $359,920
========== ========== ========
Segment income (loss)
Paper* $187,553 $44,988 $20,718
Packaging* 43,745 (4,971) 5,685
Corporate and Other* (17,733) (13,089) (3,213)
------- ------- ------
213,565 26,928 23,190
------- ------ ------
Change in fair value of
interest rate
derivatives 620 204 -
Interest expense (64,979) (65,064) (2)
Interest income 275 2,152 161
--- ----- ---
Income (loss) before
income taxes $149,481 $(35,780) $23,349
======== ======== =======
EBITDA (a)
Paper* $251,169 $95,124 $21,066
Packaging* 74,855 19,511 5,738
Corporate and Other* (14,679) (10,845) (3,137)
------- ------- ------
$311,345 $103,790 $23,667
======== ======== =======
* The nine months ended September 30, 2009, included $99.9 million of
income recorded in the Paper segment, $39.3 million of income recorded
in the Packaging segment, and $4.3 million of expenses recorded in the
Corporate and Other segment relating to alternative fuel mixture
credits. These amounts are net of fees and expenses and before taxes.
Boise Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
September 30, December 31,
2009 2008
-------------- -------------
ASSETS
Current
Cash and cash equivalents $237,604 $22,518
Short-term investments 10,010 -
Receivables
Trade, less allowances of $1,074
and $961 190,561 220,204
Related parties 2,037 1,796
Other* 36,547 4,937
Inventories 256,206 335,004
Deferred income taxes - 5,318
Prepaid and other 7,648 6,289
----- -----
740,613 596,066
------- -------
Property
Property and equipment, net 1,218,759 1,262,810
Fiber farms and deposits 17,208 14,651
------ ------
1,235,967 1,277,461
--------- ---------
Deferred financing costs 63,851 72,570
Intangible assets, net 33,047 35,075
Other assets 7,881 7,114
----- -----
Total assets $2,081,359 $1,988,286
========== ==========
* September 30, 2009, includes a $29.2 million receivable for alternative
fuel mixture credits.
Boise Inc.
Consolidated Balance Sheets (continued)
(unaudited, in thousands, except share and per-share data)
September 30, December 31,
2009 2008
-------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Current portion of long-term debt $22,235 $25,822
Income taxes payable 340 841
Accounts payable
Trade 165,780 177,157
Related parties 3,512 3,107
Accrued liabilities
Compensation and benefits 67,573 44,488
Interest payable 163 184
Other 22,679 17,402
------ ------
282,282 269,001
------- -------
Debt
Long-term debt, less current portion 932,517 1,011,628
Notes payable 74,788 66,606
------ ------
1,007,305 1,078,234
--------- ---------
Other
Deferred income taxes 44,481 8,907
Compensation and benefits 151,428 149,691
Other long-term liabilities 45,618 33,007
------ ------
241,527 191,605
------- -------
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;
84,434,691 shares and 79,716,130 shares issued
and outstanding
Additional paid-in capital 577,782 575,151
Accumulated other comprehensive income
(loss) (85,636) (85,682)
Retained earnings (accumulated deficit) 58,091 (40,031)
------ -------
Total stockholders' equity 550,245 449,446
------- -------
Total liabilities and stockholders' equity $2,081,359 $1,988,286
========== ==========
Boise Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Boise Inc. Predecessor
---------- -----------
January 1
Nine Months Ended Through
September 30 February 21,
------------
2009 2008 2008
---- ---- ----
Cash provided by (used for)
operations
Net income (loss) $98,122 $(30,038) $22,786
Items in net income (loss) not
using (providing) cash
Depreciation, depletion,
and amortization
of deferred financing costs
and other 107,471 83,803 477
Share-based compensation
expense 2,631 1,934 -
Related-party interest
expense - 2,760 -
Notes payable interest
expense 8,182 2,989 -
Pension and other
postretirement benefit
expense 6,605 7,128 1,826
Deferred income taxes 42,667 (5,742) 11
Change in fair value of
energy derivatives (4,902) 7,471 (37)
Change in fair value of
interest rate derivatives (620) (204) -
(Gain) loss on sales of
assets, net 395 4 (943)
Other (2,076) 1,511 (54)
Decrease (increase) in working
capital, net of acquisitions
Receivables 1,628 (1,851) (23,522)
Inventories 79,004 (20,660) 5,343
Prepaid expenses (462) (5,400) 875
Accounts payable and accrued
liabilities 18,436 29,869 (10,718)
Current and deferred income
taxes 7,991 (1,488) 335
Pension and other
postretirement benefit
payments (7,204) (291) (1,826)
Other 1,779 (3,388) 2,326
----- ------ -----
Cash provided by (used for)
operations 359,647 68,407 (3,121)
------- ------ ------
Cash provided by (used for)
investment
Acquisitions of businesses
and facilities (543) (1,215,641) -
Cash released from (held in)
trust, net - 403,989 -
Expenditures for property
and equipment (53,562) (58,928) (10,168)
Purchases of short-term
investments (13,792) - -
Maturities of short-term
investments 3,774
Sales of assets 639 241 17,662
Other 1,621 (1,838) 863
----- ------ ---
Cash provided by (used for)
investment (61,863) (872,177) 8,357
------- -------- -----
Cash provided by (used for)
financing
Issuances of long-term debt 10,000 1,105,700 -
Payments of long-term debt (92,698) (60,500) -
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 (82,698) 830,712 (5,237)
------- ------- ------
Increase (decrease) in cash
and cash equivalents 215,086 26,942 (1)
Balance at beginning of the
period 22,518 186 8
------ --- -
Balance at end of the
period $237,604 $27,128 $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 10K and the Company's Quarterly Report on Form 10Q for the period ended September 30, 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 nine months ended September 30, 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 September 30, 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 to EBITDA for Boise Inc. for
the three months ended September 30, 2009 and 2008, and the three
months ended June 30, 2009 (unaudited, in thousands):
Three Months Ended
------------------
September 30 June 30,
------------ -------
2009 2008 2009
---- ---- ----
Net income $48,155 $4,383 $50,883
Change in fair value of
interest rate
derivatives (125) 306 (627)
Interest expense 21,436 27,484 21,389
Interest income (130) (153) (91)
Income tax provision
(benefit) 25,737 (2,379) 26,187
Depreciation,
amortization,
and depletion 32,916 31,426 32,892
------ ------ ------
EBITDA $127,989 $61,067 $130,633
======== ======= ========
The following table reconciles net income (loss) to EBITDA for Boise Inc.
for the nine months ended September 30, 2009 and 2008, and for the
Predecessor period of January 1 through February 21, 2008 (unaudited, in
thousands):
Boise Inc. Predecessor
---------- -----------
Nine Months Ended January 1 Through
September 30 February 21,
------------
2009 2008 2008
---- ---- ----
Net income (loss) $98,122 $(30,038) $22,786
Change in fair value of
interest rate
derivatives (620) (204) -
Interest expense 64,979 65,064 2
Interest income (275) (2,152) (161)
Income tax provision
(benefit) 51,359 (5,742) 563
Depreciation,
amortization,
and depletion 97,780 76,862 477
------ ------ ---
EBITDA $311,345 $103,790 $23,667
======== ======== =======
The following table reconciles EBITDA to EBITDA excluding special items
for Boise Inc. for the three months ended September 30, 2009 and 2008, and
the three months ended June 30, 2009 (unaudited, in thousands):
Three Months Ended
------------------
September 30 June 30,
------------ -------
2009 2008 2009
---- ---- ----
EBITDA $127,989 $61,067 $130,633
St. Helens mill
restructuring (a) 1,402 - 1,133
Alternative fuel mixture
credits (b) (59,572) - (75,337)
Impact of energy hedges (3,624) 11,341 (3,468)
Hurricane losses - 5,482 -
- ----- -
EBITDA excluding special items $66,195 $77,890 $52,961
======= ======= =======
(a) In November 2008, we announced the restructuring of our St. Helens,
Oregon, paper mill. During the three months ended September 30, 2009,
and June 30, 2009, we recorded $1.4 million and $1.1 million,
respectively, of restructuring charges in "St. Helens mill
restructuring."
(b) During first quarter 2009, we filed to be registered as an alternative
fuel mixer and, in 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. During the
three months ended September 30, 2009, we recorded $59.6 million of
alternative fuel mixture credits, net of associated fees and expenses
and before taxes. We recorded these amounts in "Alternative fuel
mixture credits, net" in our Consolidated Statement of Income (Loss),
and at September 30, 2009, we had $29.2 million recorded in
"Receivables, other."
The following table reconciles EBITDA to EBITDA excluding special items
for Boise Inc. for the nine months ended September 30, 2009 and 2008.
The table also reconciles the Predecessor period of January 1 through
February 21, 2008, and the combined nine months ended September 30, 2008
(unaudited, in thousands):
Boise Inc. Predecessor Combined
---------- ----------- --------
Nine Months Ended January 1 Through Nine Months Ended
September 30 February 21, September 30,
------------
2009 2008 2008 2008
---- ---- ---- ----
EBITDA $311,345 $103,790 $23,667 $127,457
St. Helens
mill
restructuring
(a) 6,183 - - -
Alternative
fuel mixture
credits (b) (134,909) - - -
Impact of
energy hedges (4,901) 7,471 (37) 7,434
Hurricane
losses - 5,482 - 5,482
Inventory
purchase
accounting
expense - 10,259 - 10,259
Impact of
DeRidder
Outage - 19,776 732 20,508
- ------ --- ------
EBITDA
excluding
special items $177,718 $146,778 $24,362 $171,140
======== ======== ======= ========
(a) In November 2008, we announced the restructuring of our St. Helens,
Oregon, paper mill. During the nine months ended September 30, 2009,
we recorded $6.2 million of restructuring charges in "St. Helens mill
restructuring."
(b) During first quarter 2009, we filed to be registered as an
alternative fuel mixer and, in 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.
During the nine months ended September 30, 2009, we recorded
$134.9 million of alternative fuel mixture credits, net of associated
fees and expenses and before taxes. We recorded these amounts in
"Alternative fuel mixture credits, net" in our Consolidated
Statement of Income (Loss), and at September 30, 2009, we had
$29.2 million recorded in "Receivables, other."
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/