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Tuesday, May 05, 2009
Boise Inc. Announces Financial Results for First Quarter 2009
Comtex
BOISE, Idaho, May 5, 2009 /PRNewswire-FirstCall via COMTEX/ ----Boise Inc. (NYSE: BZ) today reported a net loss of $0.9 million or ($0.01) per diluted share for first quarter 2009, compared with fourth quarter net loss of $15.5 million or ($0.20) per diluted share. Boise Inc. first quarter 2008 net loss was $16.4 million or ($0.26) per diluted share.
EBITDA, excluding special items, was $58.6 million for first quarter 2009, compared with $76.0 million for fourth quarter 2008, and $53.1 million for the combined first quarter 2008 for the packaging and paper assets of Boise Cascade, L.L.C. (the "Predecessor") and Boise Inc.
Net covenant debt was $949.0 million at March 31, 2009, a decline of $65.9 million from $1,014.9 million at December 31, 2008.
FINANCIAL HIGHLIGHTS (in millions, except per-share data) Boise Inc. Combined(a) Boise Inc. Predecessor -------------- ----------- ---------- ----------- Jan 1 - 1Q 4Q 1Q 1Q Feb 21, 2009 2008 2008 2008 2008 ---- ---- ---- ---- -------- Sales $500.3 $591.1 $587.9 $228.0 $359.9 Income from operations $21.4 $11.4 $(9.3) $23.1 Net income (loss) $(0.9) $(15.5) $(16.4) $22.8 Net income (loss) per share basic and diluted $(0.01) $(0.20) $(0.26) EBITDA (b) $52.7 $41.4 $26.3 $2.6 $23.7 EBITDA excluding special items (b) $58.6 $76.0 $53.1 $28.7 $24.4 Interest expense $22.2 $26.2 $11.4 Depreciation and amortization (c) $32.0 $33.1 $12.7 $0.5 Net covenant debt (d) $949.0 $1,014.9 $1,005.7 (a) Includes combined results for Predecessor and Boise Inc. (b) For reconciliation of net income (loss) to EBITDA and EBITDA to EBITDA excluding special items, see "Summary Notes to Consolidated Financial Statements and Segment Information." (c) Predecessor period excludes $16.7 million of depreciation due to classification of property as assets held for sale in first quarter 2008. (d) Net covenant debt is calculated in accordance with credit agreements. For reconciliation of total debt to net covenant debt, see "Summary Notes to Consolidated Financial Statements and Segment Information."
"In the first quarter 2009, we generated strong cash flow and improved EBITDA over last year despite very challenging markets for all our products. We also made good progress reducing our covenant debt by nearly $66 million dollars," said Alexander Toeldte, President and Chief Executive Officer of Boise Inc. "We reduced financial risk in our newsprint business by terminating our contract with AbitibiBowater to sell directly to customers and took significant downtime to match production to demand. We managed our working capital levels well and will continue to balance production with demand and focus on cash generation."
Sales
Total sales for first quarter 2009 were $500.3 million, a decrease of $87.6 million, or 15%, from $587.9 million during the combined first quarter 2008 and down 15% from fourth quarter 2008 sales of $591.1 million.
Paper segment sales decreased $73.7 million, or 17%, during first quarter 2009 compared with the combined first quarter 2008, driven by 22% lower uncoated freesheet sales volumes. This was due to market downtime and the St. Helens mill downsizing, which eliminated 200,000 tons, or 13%, of our annual uncoated freesheet capacity. Reduced sales volumes were partially offset by higher net sales prices. Paper segment sales in first quarter 2009 declined by $37.6 million, or 10%, from fourth quarter 2008 due to lower sales volumes, partially offset by higher net selling prices.
Packaging segment sales decreased $16.3 million, or 9%, to $157.1 million from $173.4 million during first quarter 2009 compared with the combined first quarter 2008. The decrease was driven mainly by lower newsprint and segment linerboard sales volumes as we balanced production to match lower demand. Newsprint volumes were also reduced in first quarter 2009 by the transition from selling all of our output to AbitibiBowater to selling directly to customers, which began in March. Sequentially, from fourth quarter 2008 to first quarter 2009, Packaging segment sales decreased $56.7 million, or 27%, due to lower volumes and lower net selling prices.
Prices and Volumes
Average net selling prices of uncoated freesheet papers improved $104 per ton, or 12%, to $981 per ton during first quarter 2009 compared with the combined first quarter 2008 and improved $12 per ton, or 1%, over fourth quarter 2008. Uncoated freesheet sales volumes were 303,000 tons during first quarter 2009, a decline of 22% versus the combined prior year period and down 9% from fourth quarter 2008 due to market downtime as a result of lower demand and reduced capacity as a result of the St. Helens mill downsizing. Combined sales volumes of premium office, label and release, and flexible packaging papers, which represented 26% of our first quarter 2009 uncoated freesheet sales volumes, increased by 1% from the prior year.
Linerboard net selling prices to third parties declined $44 per ton, or 11%, to $352 per ton in first quarter 2009 from $396 per ton in the combined first quarter 2008 and declined $54 per ton, or 13%, from fourth quarter 2008, due to softening demand, particularly in export markets. Linerboard sales volumes to third parties were 38,000 tons, a decrease of 21% compared with the combined first quarter 2008 and down 30% from fourth quarter 2008 due to soft market conditions. We took downtime late in fourth quarter 2008 and first quarter 2009 to match supply to demand.
Corrugated container and sheet prices improved $5 per thousand square feet (msf), or 9%, to $60 per msf in first quarter 2009 over prices for these products during the combined first quarter 2008 and decreased $1 per msf, or 2%, compared with fourth quarter 2008 prices. Sales volumes for corrugated containers and sheets were 1.4 thousand msf in first quarter 2009, a decline of 9% versus the combined first quarter 2008 and down 7% from fourth quarter 2008, driven mainly by lower volumes from our sheet feeder plant in Texas as a result of slowing industrial markets. Sales volumes for corrugated containers and sheets from our plants in the Pacific Northwest experienced more modest declines due to more stable demand in agricultural and food sectors.
Newsprint pricing in first quarter 2009 increased by $88 per ton, or 18%, to $588 per ton over the combined first quarter 2008 and declined $55 per ton, or 9%, from fourth quarter 2008. Newsprint sales volumes were 60,000 tons, a decline of 30% compared with the combined first quarter 2008 and down 36% from fourth quarter 2008 due to weak demand and the start-up of our direct marketing efforts.
Input Costs
Total fiber, energy, and chemical costs for first quarter 2009 were $205.7 million, a decrease of $66.5 million, or 24%, over costs of $272.2 million for the combined first quarter 2008, and a decrease of $61.3 million, or 23%, from costs of $267.0 million for fourth quarter 2008.
INPUT COST SUMMARY Boise Boise Inc. Combined(a) Inc. Predecessor -------------- ----------- ----- ----------- Jan 1 - Feb 21, 1Q 2009 4Q 2008 1Q 2008 1Q 2008 2008 ------- ------- ------- ------- -------- (in millions) Fiber $94.1 $124.0 $127.3 $51.3 $76.0 Energy $60.8 $77.5 $82.8 $34.8 $48.1 Chemicals $50.8 $65.5 $62.0 $25.5 $36.5 Total $205.7 $267.0 $272.2 $111.5 $160.7 (a) Includes combined results for Predecessor and Boise Inc.
Total fiber costs during first quarter 2009 were $94.1 million, a decrease of $33.2 million, or 26%, from $127.3 million incurred for fiber in the combined first quarter 2008 and a decrease of $29.9 million, or 24%, from $124.0 million for fourth quarter 2008. This decrease was due primarily to lower prices for purchased pulp, wood and recycled fiber, and reduced consumption of wood fiber as a result of lower production capacity due to the St. Helens mill downsizing and market downtime.
Energy costs in first quarter 2009 decreased $22.0 million, or 27%, to $60.8 million compared with $82.8 million in the same quarter a year ago. Lower overall energy consumption and lower prices for natural gas and fuel were the primary drivers, partially offset by higher electricity prices. Energy costs in first quarter 2009 decreased $16.7 million, or 22%, from $77.5 million in fourth quarter 2008, due to lower total consumption and prices for natural gas.
Chemical costs in first quarter 2009 were $50.8 million, a decrease of $11.2 million, or 18%, compared with $62.0 million in the prior year's first quarter and down $14.7 million, or 22%, compared with $65.5 million in fourth quarter 2008, driven by reduced consumption partially offset by higher prices.
Alternative Fuel Tax Credit
The U.S. Internal Revenue Code allows an excise tax for taxpayers who use alternative fuels in the taxpayer's trade or business. Each year, under normal operating conditions, we produce and use approximately 500 million gallons of fuel produced from biomass to provide energy to four of our five paper mills. During the first quarter, we filed to be registered as an alternative fuel mixer and, in late April, received notification from the Internal Revenue Service that our registration was approved. We became eligible to receive the tax credit at our four pulp and paper mills beginning at various dates from late January to late March 2009. Through April 30, 2009, we had filed for approximately $37 million in tax credits, before the effect of income taxes. To date, we have received $3.9 million of cash related to these credits. Our first quarter results do not include any effects of the alternative fuel credits.
Webcast and Conference Call
Boise Inc. will host a webcast and conference call on Tuesday, May 5, 2009, at 11:00 a.m. Eastern, at which time we will review the company's recent performance. To participate in the conference call, dial 866-841-1001 (international callers should dial 832-445-1689). The webcast may be accessed through Boise's Internet site and will be archived for one year following the call. Go to www.BoiseInc.com and click on the link to the webcast under Webcasts & Presentations on the Investors drop-down menu.
A replay of the conference call will be available in Webcasts & Presentations from May 5 at 12:00 p.m. Eastern through June 5 at 11:59 p.m. Eastern. Playback numbers are 800-642-1687 for U.S. callers and 706-645-9291 for international callers. The passcode is 95734398.
About Boise Inc.
Headquartered in Boise, Idaho, Boise Inc. (NYSE: BZ) manufactures packaging products and papers including corrugated containers, containerboard, label and release and flexible packaging papers, imaging papers for the office and home, printing and converting papers, newsprint, and market pulp. Our entire team of approximately 4,120 employees is committed to delivering excellent value while managing our businesses to sustain environmental resources for future generations. Visit our website at www.BoiseInc.com.
Basis of Presentation
On February 22, 2008, we completed the acquisition of Boise Cascade, L.L.C.'s packaging and paper manufacturing businesses (the Acquisition). The Acquisition was accounted for in accordance with SFAS No. 141, Business Combinations, resulting in a new basis of accounting from that previously reported by the Predecessor. However, sales and most operating cost items are substantially consistent with those reported by the Predecessor. Finished goods inventory was revalued to estimated selling prices less costs of disposal and a reasonable profit on the disposal. Depreciation changed as a result of adjustments to the fair values of property and equipment due to our purchase price allocation.
We present our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). Our earnings release also supplements the GAAP presentations by reflecting EBITDA. EBITDA represents income (loss) before interest (change in fair value of interest rate derivatives, interest expense, and interest income), income taxes, and depreciation, amortization, and depletion. EBITDA is the primary measure used by our chief operating decision makers to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties in the evaluation of companies with substantial financial leverage. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. For example, we believe that the inclusion of items such as taxes, interest expense, and interest income distorts management's ability to assess and view the core operating trends in our segments. EBITDA, however, is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest and associated significant cash requirements; and the exclusion of depreciation, amortization, and depletion, which represent significant and unavoidable operating costs, given the level of our indebtedness and the capital expenditures needed to maintain our businesses. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
Forward-Looking Statements
This news release may contain statements that are "forward looking" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Forward-looking statements involve risks and uncertainties, including but not limited to economic, competitive, and technological factors outside our control that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, among others, our substantial level of indebtedness; our continued ability to comply with our financial covenants and debt service obligations; our ability to comply with the continued listing requirements of the NYSE; changes in the supply of, demand for, or prices of our products; the activities of competitors; changes in significant operating expenses, including raw material and energy costs; our success at marketing newsprint directly to customers; our ability to weather the current economic downturn in the United States and elsewhere; changes in the regulatory environment, including requirements for enhanced environmental compliance; and other risks and uncertainties that are detailed in our filings with the Securities and Exchange Commission. The Company does not intend, and undertakes no obligation, to update any forward-looking statements.
Boise Inc. Consolidated Statements of Income (Loss) (unaudited, in thousands, except share and per-share data) Boise Inc. Predecessor -------------------------------- ----------- Three Three Three Months Months Months January 1 Ended Ended Ended Through March 31, December 31, March 31, February 21, 2009 2008 2008 2008 ---- ---- ---- ---- Sales Trade $484,868 $566,671 $226,044 $258,430 Related parties 15,417 24,448 1,944 101,490 ------ ------ ----- ------- 500,285 591,119 227,988 359,920 ------- ------- ------- ------- Costs and expenses Materials, labor, and other operating expenses 413,139 490,576 195,429 313,931 Fiber costs from related parties 5,703 7,771 18,629 7,662 Depreciation, amortization, and depletion 31,972 33,126 12,747 477 Selling and distribution expenses 13,782 13,715 5,943 9,097 General and administrative expenses 10,373 7,556 4,549 6,606 St. Helens mill restructuring 3,648 29,780 - - Other (income) expense, net 239 (2,820) (28) (989) ------ ------ ------ ------ 478,856 579,704 237,269 336,784 ------- ------- ------- ------- Income (loss) from operations 21,429 11,415 (9,281) 23,136 ------ ------ ------ ------ Foreign exchange gain (loss) (678) (3,185) (853) 54 Change in fair value of interest rate derivatives (132) (683) - - Interest expense (22,154) (26,156) (11,435) (2) Interest income 54 94 1,821 161 ----- ----- ----- ----- (22,910) (29,930) (10,467) 213 ------- ------- ------- ------- Income (loss) before income taxes (1,481) (18,515) (19,748) 23,349 Income tax (provision) benefit 565 3,030 3,377 (563) ----- ----- ----- ----- Net income (loss) $(916) $(15,485) $(16,371) $22,786 ===== ======== ======== ======= Weighted average common shares outstanding: Basic and diluted 77,491,233 77,260,274 62,682,834 - Net income (loss) per common share: Basic and diluted $(0.01) $(0.20) $(0.26) $-
Segment Information (unaudited, in thousands) Boise Inc. Predecessor --------------------------------- ----------- Three Three Three Months Months Months January 1 Ended Ended Ended Through March 31, December 31, March 31, February 21, 2009 2008 2008 2008 ---- ---- ---- ---- Segment sales Paper $351,995 $389,644 $172,203 $253,508 Packaging 157,132 213,788 59,885 113,485 Intersegment eliminations and other (8,842) (12,313) (4,100) (7,073) ------ ------- ------ ------ $500,285 $591,119 $227,988 $359,920 ======== ======== ======== ======== Segment income (loss) Paper $24,776 $(12,303) $11,849 $20,718 Packaging 1,125 26,075 (19,761) 5,685 Corporate and Other (5,150) (5,542) (2,222) (3,213) ------ ------ ------ ------ 20,751 8,230 (10,134) 23,190 ------ ------ ------- ------ Change in fair value of interest rate derivatives (132) (683) - - Interest expense (22,154) (26,156) (11,435) (2) Interest income 54 94 1,821 161 ----- ----- ----- ----- Income (loss) before income taxes $(1,481) $(18,515) $(19,748) $23,349 ======= ======== ======== ======= EBITDA (a) Paper $46,122 $9,222 $18,969 $21,066 Packaging 10,781 36,660 (14,548) 5,738 Corporate and Other (4,180) (4,526) (1,808) (3,137) ------ ------ ------ ------ $52,723 $41,356 $2,613 $23,667 ======= ======= ====== =======
Boise Inc. Consolidated Balance Sheets (unaudited, in thousands) Boise Inc. --------------------------------- March 31, 2009 December 31, 2008 -------------- ----------------- ASSETS Current Cash and cash equivalents $27,510 $22,518 Receivables Trade, less allowances of $979 and $961 183,606 220,204 Related parties 2,532 1,796 Other 5,805 4,937 Inventories 309,952 335,004 Deferred income taxes 8,791 5,318 Prepaid and other 7,638 6,289 ----- ----- 545,834 596,066 ------- ------- Property Property and equipment, net 1,250,219 1,262,810 Fiber farms and deposits 14,496 14,651 ------ ------ 1,264,715 1,277,461 --------- --------- Deferred financing costs 69,718 72,570 Intangible assets, net 34,425 35,075 Other assets 6,454 7,114 ----- ----- Total assets $1,921,146 $1,988,286 ========== ==========
Boise Inc. Consolidated Balance Sheets (continued) (unaudited, in thousands, except share data) Boise Inc. --------------------------------- March 31, 2009 December 31, 2008 -------------- ----------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current Current portion of long-term debt $7,479 $25,822 Income taxes payable 804 841 Accounts payable Trade 157,871 177,157 Related parties 1,492 3,107 Accrued liabilities Compensation and benefits 45,248 44,488 Interest payable 168 184 Other 21,167 17,402 ------ ------ 234,229 269,001 ------- ------- Debt Long-term debt, less current portion 967,340 1,011,628 Notes payable 69,229 66,606 ------ ------ 1,036,569 1,078,234 --------- --------- Other Deferred income taxes 15,208 8,907 Compensation and benefits 152,177 149,691 Other long-term liabilities 33,583 33,007 ------ ------ 200,968 191,605 ------- ------- Commitments and contingent liabilities Stockholders' Equity Preferred stock, $.0001 par value per share: - - 1,000,000 shares authorized; none issued Common stock, $.0001 par value per share: 8 8 250,000,000 shares authorized; 79,879,372 shares and 79,716,130 shares issued and outstanding Additional paid-in capital 576,008 575,151 Accumulated other comprehensive loss (85,689) (85,682) Accumulated deficit (40,947) (40,031) ------- ------- Total stockholders' equity 449,380 449,446 ------- ------- Total liabilities and stockholders' equity $1,921,146 $1,988,286 ========== ==========
Boise Inc. Consolidated Statements of Cash Flows (unaudited, in thousands) Boise Inc. Predecessor ------------------ ----------- Three Three Months Months January 1 Ended Ended Through March 31, March 31, February 21, 2009 2008 2008 ---- ---- ---- Cash provided by (used for) operations Net income (loss) $(916) $(16,371) $22,786 Items in net income (loss) not using (providing) cash Depreciation, depletion, and amortization of deferred financing costs and other 35,030 13,554 477 Share-based compensation expense 857 - - Related-party interest expense - 986 - Notes payable interest expense 2,623 - - Pension and other postretirement benefit expense 2,450 1,237 1,826 Deferred income taxes (844) (3,377) 11 Change in fair value of energy derivatives 2,191 (204) (37) Change in fair value of interest rate derivatives 132 - - (Gain) loss on sales of assets, net (20) (3) (943) Other 678 853 (54) Decrease (increase) in working capital, net of acquisitions Receivables 38,800 23,485 (23,522) Inventories 25,258 (5,158) 5,343 Prepaid expenses 256 (7,451) 875 Accounts payable and accrued liabilities (19,577) 23,654 (10,718) Current and deferred income taxes (39) 1,806 335 Pension and other postretirement benefit payments (1,319) (47) (1,826) Other 128 (1,155) 2,326 ------ ------ ----- Cash provided by (used for) operations 85,688 31,809 (3,121) ------ ------ ------ Cash provided by (used for) investment Acquisitions of businesses and facilities (543) (1,219,421) - Cash released from (held in) trust, net - 403,989 - Expenditures for property and equipment (17,171) (10,224) (10,168) Sales of assets 61 - 17,662 Other (412) 2,410 863 ----- ----- ----- Cash provided by (used for) investment (18,065) (823,246) 8,357 ------- -------- ----- Cash provided by (used for) financing Issuances of long-term debt 10,000 1,065,700 - Payments of long-term debt (72,631) (35,000) - Payments to stockholders for exercise of conversion rights - (120,170) - Payments of deferred financing fees - (81,898) - Payments of deferred underwriters fees - (12,420) - Net equity transactions with related parties - - (5,237) ------ ------ ------ Cash provided by (used for) financing (62,631) 816,212 (5,237) ------- ------- ------ Increase (decrease) in cash and cash equivalents 4,992 24,775 (1) Balance at beginning of the period 22,518 186 8 ------ ------ ------ Balance at end of the period $27,510 $24,961 $7 ======= ======= ======
Summary Notes to Consolidated Financial Statements and Segment Information
The Consolidated Statements of Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information do not include all Notes to Consolidated Financial Statements and should be read in conjunction with the Company's 2008 Annual Report on Form 10-K and the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2009, as well as the other reports the Company files with the SEC. Net income (loss) for all periods presented involved estimates and accruals.
On February 22, 2008, Boise Inc. or "the Company," "we," "us," or "our" completed the acquisition (the Acquisition) of Boise White Paper, L.L.C., Boise Packaging & Newsprint, L.L.C., Boise Cascade Transportation Holdings Corp. (collectively, the Paper Group), and other assets and liabilities related to the operation of the paper, packaging and newsprint, and transportation businesses of the Paper Group and part of the headquarters operations of Boise Cascade, L.L.C. (Boise Cascade). The business we acquired is referred to as the "Predecessor."
The accompanying consolidated statement of income (loss) and cash flows for the three months ended March 31, 2008, include the activities of Aldabra 2 Acquisition Corp. prior to the Acquisition and the operations of the acquired businesses from February 22, 2008, through March 31, 2008. The consolidated statement of income (loss) and cash flows for the period of January 1 through February 21, 2008, of the Predecessor are presented for comparative purposes.
Boise Inc. operates its business in three reportable segments: Paper, Packaging, and Corporate and Other (support services). Boise Inc. manufactures commodity and premium office papers, a range of packaging papers, including label and release papers, flexible packaging papers, and printing and converting papers. Boise Inc. also manufactures corrugated containers, containerboard, newsprint, and market pulp.
(a) EBITDA represents income (loss) before interest (change in fair value of interest rate derivatives, interest expense, and interest income), income taxes, and depreciation, amortization, and depletion. The following table reconciles net income (loss) to EBITDA for Boise Inc. for the three months ended March 31, 2009 and 2008, the three months ended December 31, 2008, and the Predecessor period of January 1 through February 21, 2008 (unaudited, in thousands):
Boise Inc. Predecessor ----------------------------------- ----------- Three Three Three Months Months Months January 1 Ended Ended Ended Through March 31, December 31, March 31, February 21, 2009 2008 2008 2008 ---- ---- ---- ---- Net income (loss) $(916) $(15,485) $(16,371) $22,786 Change in fair value of interest rate derivatives 132 683 - - Interest expense 22,154 26,156 11,435 2 Interest income (54) (94) (1,821) (161) Income tax provision (benefit) (565) (3,030) (3,377) 563 Depreciation, amortization, and depletion 31,972 33,126 12,747 477 ------ ------ ------ ------ EBITDA $52,723 $41,356 $2,613 $23,667 ======= ======= ====== =======
The following table reconciles EBITDA to EBITDA excluding special items for Boise Inc. for the three months ended March 31, 2009 and 2008, and the three months ended December 31, 2008. The table also reconciles the Predecessor period of January 1 through February 21, 2008, and the combined three months ended March 31, 2008 (unaudited, in thousands):
Boise Inc. Predecessor Combined ------------------------------- ----------- -------- Three Three Three Three Months Months Months January 1 Months Ended Ended Ended Through Ended March 31, December 31, March 31, February 21, March 31, 2009 2008 2008 2008 2008 ---- ---- ---- ---- ---- EBITDA $52,723 $41,356 $2,613 $23,667 $26,280 St. Helens mill restructuring (a) 3,648 37,568 - - - Impact of energy hedges 2,191 (26) (204) (37) (241) Gain on changes in supplemental pension plans - (2,914) - - - Inventory purchase accounting expense - - 6,555 - 6,555 Impact of DeRidder outage - - 19,776 732 20,508 ------ ------ ------ ------ ------ EBITDA excluding special items $58,562 $75,984 $28,740 $24,362 $53,102 ======= ======= ======= ======= =======
(a) In November 2008, we announced the restructuring of our St. Helens, Oregon, paper mill. During the three months ended March 31, 2009, we recorded $3.6 million of restructuring charges in "St. Helens mill restructuring." Of the $37.6 million restructuring charge recorded during the three months ended December 31, 2008, $29.8 million is included in "St. Helens mill restructuring" and $7.8 million related to inventory write-downs is included in "Materials, labor, and other operating expenses."
The following table reconciles total debt to net debt and net covenant debt at March 31, 2009 and 2008, and December 31, 2008 (unaudited, in thousands):
Boise Inc. ----------------------------------- March 31, December 31, March 31, 2009 2008 2008 ---- ---- ---- Current portion of long-term debt $7,479 $25,822 $11,000 Long-term debt, less current portion 967,340 1,011,628 1,019,700 Notes payable 69,229 66,606 58,793 ------ ------ ------ Total debt 1,044,048 1,104,056 1,089,493 Less cash and cash equivalents (27,510) (22,518) (24,961) ------- ------- ------- Net debt 1,016,538 1,081,538 1,064,532 Less notes payable (69,229) (66,606) (58,793) Other 1,729 - - ------ ------ ------ Net covenant debt $949,038 $1,014,932 $1,005,739 ======== ========== ==========
SOURCE Boise Inc.
http://www.BoiseInc.com
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