In the table titled SUPPLEMENTAL FINANCIAL DATA, under Segment Results/Three Months Ended Sept. 30, 2007/Operating Income, amount should be 22,066 (sted 12,288).
The corrected release reads:
BUCKEYE ANNOUNCES OCTOBER-DECEMBER QUARTER RESULTS
Buckeye Technologies Inc. (NYSE:BKI) today announced earnings for the October-December quarter of 35 cents per share. This compares to earnings for the same period last year of 10 cents per share.
Chairman and Chief Executive Officer John B. Crowe said, “We had an exceptional quarter. Second quarter net sales were up 14% compared to the same period last year. Sales of $211 million are our highest revenue quarter ever. The earnings improvement is a combination of higher pricing, higher specialty wood volume and cost control.”
Mr. Crowe went on to say, “We are pleased with the quarter and year-to-date revenue and income growth. Our markets remain solid and we will benefit from price increases that we implemented in January. In the current quarter, we anticipate lower nonwovens production and revenue due to our previously announced volume reduction from our Delta nonwovens facility. Additionally, we expect higher manufacturing costs at our Florida specialty wood facility due to planned maintenance inspections. While the just completed quarter’s earnings performance will be difficult to repeat, we do anticipate strong performance in the January-March quarter 2008.”
Buckeye has scheduled a conference call at 10:00 a.m. EST, Wednesday, January 30, 2008 to discuss second quarter performance. Persons interested in listening by telephone may dial in at (877) 852-6579 within the United States. International callers should dial (719) 325-4823.
Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company’s operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
December 31, 2007 | September 30, 2007 | December 31, 2006 | December 31, 2007 | December 31, 2006 | |||||||||||||||||
| Net sales | $ | 210,922 | $ | 197,399 | $ | 184,730 | $ | 408,321 | $ | 376,136 | |||||||||||
| Cost of goods sold | 168,943 | 156,744 | 155,711 | 325,687 | 317,782 | ||||||||||||||||
| Gross margin | 41,979 | 40,655 | 29,019 | 82,634 | 58,354 | ||||||||||||||||
| Gross margin as a percentage of sales | 19.9 | % | 20.6 | % | 15.7 | % | 20.2 | % | 15.5 | % | |||||||||||
| Selling, research and administrative expenses | 11,796 | 11,474 | 11,163 | 23,270 | 22,367 | ||||||||||||||||
| Amortization of intangibles and other | 361 | 561 | 507 | 922 | 1,138 | ||||||||||||||||
| Restructuring costs | - | 96 | 11 | 96 | 24 | ||||||||||||||||
| Operating income | 29,822 | 28,524 | 17,338 | 58,346 | 34,825 | ||||||||||||||||
| Net interest expense and amortization of debt costs | (8,524 | ) | (9,157 | ) | (10,440 | ) | (17,681 | ) | (21,191 | ) | |||||||||||
| Extinguishment of debt | 251 | (786 | ) | (96 | ) | (535 | ) | (652 | ) | ||||||||||||
| Gain on sale of assets held for sale | - | - | - | - | 355 | ||||||||||||||||
| Foreign exchange and other | (94 | ) | (168 | ) | 246 | (262 | ) | 252 | |||||||||||||
| Income before income taxes | 21,455 | 18,413 | 7,048 | 39,868 | 13,589 | ||||||||||||||||
| Income tax expense | 7,589 | 4,916 | 3,228 | 12,505 | 5,962 | ||||||||||||||||
| Net income | $ | 13,866 | $ | 13,497 | $ | 3,820 | $ | 27,363 | $ | 7,627 | |||||||||||
| Earnings per share | $ | 0.36 | $ | 0.35 | $ | 0.10 | $ | 0.70 | $ | 0.20 | |||||||||||
| Diluted earnings per share | $ | 0.35 | $ | 0.34 | $ | 0.10 | $ | 0.70 | $ | 0.20 | |||||||||||
Weighted average shares for basic earnings per share | 38,953 | 38,743 | 37,702 | 38,848 | 37,682 | ||||||||||||||||
Weighted average shares for diluted earnings per share | 39,448 | 39,260 | 38,010 | 39,354 | 37,851 | ||||||||||||||||
| BUCKEYE TECHNOLOGIES INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (unaudited) | ||||||||||
| (In thousands) | ||||||||||
| December 31 | September 30 | June 30 | ||||||||
| 2007 | 2007 | 2007 | ||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 23,566 | $ | 14,003 | $ | 14,790 | ||||
| Accounts receivable, net | 120,413 | 120,199 | 116,865 | |||||||
| Inventories | 92,140 | 94,050 | 86,777 | |||||||
| Deferred income taxes and other | 9,371 | 9,514 | 9,452 | |||||||
| Total current assets | 245,490 | 237,766 | 227,884 | |||||||
| Property, plant and equipment, net | 542,796 | 541,582 | 537,655 | |||||||
| Goodwill | 164,251 | 162,116 | 155,937 | |||||||
| Intellectual property and other, net | 30,459 | 30,439 | 30,346 | |||||||
| Total assets | $ | 982,996 | $ | 971,903 | $ | 951,822 | ||||
| Liabilities and stockholders' equity | ||||||||||
| Current liabilities: | ||||||||||
| Trade accounts payable | $ | 38,323 | $ | 42,032 | 41,030 | |||||
| Accrued expenses | 48,636 | 58,861 | 49,532 | |||||||
| Current portion of capital lease obligations | 560 | 407 | 399 | |||||||
| Short-term debt | 219 | 505 | - | |||||||
| Total current liabilities | 87,738 | 101,805 | 90,961 | |||||||
| Long-term debt | 413,149 | 418,917 | 445,138 | |||||||
| Deferred income taxes | 53,223 | 47,019 | 41,761 | |||||||
| Capital lease obligations | - | 251 | 356 | |||||||
| Other liabilities | 26,714 | 26,115 | 26,452 | |||||||
| Stockholders' equity | 402,172 | 377,796 | 347,154 | |||||||
| Total liabilities and stockholders' equity | $ | 982,996 | $ | 971,903 | $ | 951,822 | ||||
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
December 31, 2007 | September 30, 2007 | December 31, 2006 | December 31, 2007 | December 31, 2006 | |||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||
| Net income | $ | 13,866 | $ | 13,497 | $ | 3,820 | $ | 27,363 | $ | 7,627 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
| Depreciation | 12,780 | 12,629 | 12,165 | 25,409 | 24,311 | ||||||||||||||||
| Amortization | 624 | 502 | 664 | 1,126 | 1,648 | ||||||||||||||||
| Loss on early extinguishment of debt | (251 | ) | 786 | 96 | 535 | 652 | |||||||||||||||
| Deferred income taxes | 5,834 | 4,624 | 1,711 | 10,458 | 2,254 | ||||||||||||||||
| Gain on sale of assets held for sale | - | - | (355 | ) | - | (355 | ) | ||||||||||||||
| Loss on disposal of equipment | 448 | 116 | 107 | 564 | 215 | ||||||||||||||||
| Provision for bad debts | (1 | ) | (9 | ) | 132 | (10 | ) | 181 | |||||||||||||
| Excess tax benefit from stock based compensation | (29 | ) | (15 | ) | - | (44 | ) | (5 | ) | ||||||||||||
| Other | 364 | 184 | 250 | 548 | 826 | ||||||||||||||||
| Change in operating assets and liabilities | |||||||||||||||||||||
| Accounts receivable | 951 | (1,726 | ) | 4,117 | (775 | ) | 6,860 | ||||||||||||||
| Inventories | 2,166 | (5,571 | ) | 5,712 | (3,405 | ) | 12,392 | ||||||||||||||
| Other assets | 555 | (219 | ) | (1,562 | ) | 336 | (2,857 | ) | |||||||||||||
| Accounts payable and other liabilities | (14,925 | ) | 6,955 | (13,213 | ) | (7,970 | ) | 334 | |||||||||||||
| Net cash provided by operating activities | 22,382 | 31,753 | 13,644 | 54,135 | 54,083 | ||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||
| Purchases of property, plant & equipment | (9,702 | ) | (8,990 | ) | (7,720 | ) | (18,692 | ) | (14,325 | ) | |||||||||||
| Proceeds from sale of assets | - | - | 520 | - | 521 | ||||||||||||||||
| Other | (89 | ) | (46 | ) | (321 | ) | (135 | ) | (280 | ) | |||||||||||
| Net cash used in investing activities | (9,791 | ) | (9,036 | ) | (7,521 | ) | (18,827 | ) | (14,084 | ) | |||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||
| Net borrowings (payments) under line of credit | (6,267 | ) | 88,267 | 1,513 | 82,000 | (1,487 | ) | ||||||||||||||
| Payments on long term debt and other | (98 | ) | (113,719 | ) | (14,213 | ) | (113,817 | ) | (35,689 | ) | |||||||||||
| Payments for debt issuance costs | (112 | ) | (1,289 | ) | - | (1,401 | ) | - | |||||||||||||
| Excess tax benefit from stock based compensation | 29 | 15 | - | 44 | 5 | ||||||||||||||||
| Net proceeds from sale of equity interests | 3,037 | 2,705 | 1,099 | 5,742 | 1,099 | ||||||||||||||||
| Net cash used in financing activities | (3,411 | ) | (24,021 | ) | (11,601 | ) | (27,432 | ) | (36,072 | ) | |||||||||||
| Effect of foreign currency rate fluctuations on cash | 383 | 517 | 112 | 900 | 32 | ||||||||||||||||
| Increase (decrease) in cash and cash equivalents | 9,563 | (787 | ) | (5,366 | ) | 8,776 | 3,959 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 14,003 | 14,790 | 18,059 | 14,790 | 8,734 | ||||||||||||||||
| Cash and cash equivalents at end of period | $ | 23,566 | $ | 14,003 | $ | 12,693 | $ | 23,566 | $ | 12,693 | |||||||||||
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| SEGMENT RESULTS | December 31, 2007 | September 30, 2007 | December 31, 2006 | December 31, 2007 | December 31, 2006 | ||||||||||||||||
| Specialty Fibers | |||||||||||||||||||||
| Net sales | $ | 148,208 | $ | 135,701 | $ | 130,126 | $ | 283,909 | $ | 265,001 | |||||||||||
Operating income (a) | 25,889 | 22,066 | 13,194 | 47,955 | 25,482 | ||||||||||||||||
Depreciation and amortization (b) | 8,157 | 8,015 | 7,859 | 16,172 | 15,557 | ||||||||||||||||
| Capital expenditures | 8,468 | 7,920 | 6,083 | 16,388 | 11,656 | ||||||||||||||||
| Nonwoven Materials | |||||||||||||||||||||
| Net sales | $ | 71,966 | $ | 71,630 | $ | 62,488 | $ | 143,596 | $ | 127,455 | |||||||||||
Operating income (a) | 5,273 | 7,954 | 4,846 | 13,227 | 10,825 | ||||||||||||||||
Depreciation and amortization (b) | 4,241 | 4,232 | 3,965 | 8,473 | 8,136 | ||||||||||||||||
| Capital expenditures | 737 | 707 | 580 | 1,444 | 997 | ||||||||||||||||
| Corporate | |||||||||||||||||||||
| Net sales | $ | (9,252 | ) | $ | (9,932 | ) | $ | (7,884 | ) | $ | (19,184 | ) | $ | (16,320 | ) | ||||||
Operating loss (a) | (1,340 | ) | (1,496 | ) | (702 | ) | (2,836 | ) | (1,482 | ) | |||||||||||
Depreciation and amortization (b) | 744 | 944 | 851 | 1,688 | 1,805 | ||||||||||||||||
| Capital expenditures | 497 | 363 | 1,057 | 860 | 1,672 | ||||||||||||||||
| Total | |||||||||||||||||||||
| Net sales | $ | 210,922 | $ | 197,399 | $ | 184,730 | $ | 408,321 | $ | 376,136 | |||||||||||
Operating income (a) | 29,822 | 28,524 | 17,338 | 58,346 | 34,825 | ||||||||||||||||
Depreciation and amortization (b) | 13,142 | 13,191 | 12,675 | 26,333 | 25,498 | ||||||||||||||||
| Capital expenditures | 9,702 | 8,990 | 7,720 | 18,692 | 14,325 | ||||||||||||||||
(a) Asset impairment and restructuring costs are included in operating income for the corporate segment. | |||||||||||||||||||||
(b) Depreciation and amortization includes depreciation, depletion and amortization of intangibles. | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| ADJUSTED EBITDA | December 31, 2007 | September 30, 2007 | December 31, 2006 | December 31, 2007 | December 31, 2006 | ||||||||||||||||
| Income | $ | 13,866 | $ | 13,497 | $ | 3,820 | $ | 27,363 | $ | 7,627 | |||||||||||
| Income tax expense | 7,589 | 4,916 | 3,228 | 12,505 | 5,962 | ||||||||||||||||
| Interest expense | 8,435 | 8,972 | 10,124 | 17,407 | 20,531 | ||||||||||||||||
| Amortization of debt costs | 268 | 302 | 316 | 570 | 660 | ||||||||||||||||
| Early extinguishment of debt | (251 | ) | 786 | 96 | 535 | 652 | |||||||||||||||
| Depreciation, depletion and amortization | 13,140 | 13,191 | 12,675 | 26,331 | 25,498 | ||||||||||||||||
| EBITDA | 43,047 | 41,664 | 30,259 | 84,711 | 60,930 | ||||||||||||||||
| Non cash charges | 447 | 117 | 107 | 564 | 215 | ||||||||||||||||
| Gain on sale of assets held for sale | - | - | - | - | (355 | ) | |||||||||||||||
| Restructuring charges | - | - | 11 | - | 24 | ||||||||||||||||
| Adjusted EBITDA | $ | 43,494 | $ | 41,781 | $ | 30,377 | $ | 85,275 | $ | 60,814 | |||||||||||
| 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, non-cash charges, restructuring charges prior to July 1, 2007 and other (gains) losses. 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 July 25, 2007, 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.). | |||||||||||||||||||||
| BUCKEYE TECHNOLOGIES INC. | |||||||||||||
| SUPPLEMENTAL RECONCILIATIONS | |||||||||||||
| (unaudited) | |||||||||||||
| (In thousands, except per share data) | |||||||||||||
| Three Months Ended | Six months Ended | ||||||||||||
December 31, 2006 | September 30, 2007 | December 31, 2006 | |||||||||||
| reconciled to | reconciled to | reconciled to | |||||||||||
| NET SALES RECONCILIATION | December 31, 2007 | December 31, 2007 | December 31, 2007 | ||||||||||
| Net sales | $ | 184.7 | $ | 197.4 | $ | 376.1 | |||||||
Volume (1) | 5.2 | 6.2 | (4.6 | ) | |||||||||
| Pricing (2) | 16.4 | 3.8 | 30.0 | ||||||||||
| Product sales mix and other (3) | 4.6 | 3.5 | 6.8 | ||||||||||
| Net sales | $ | 210.9 | $ | 210.9 | $ | 408.3 | |||||||
(1) Volume relates to the change in volume on comparable products | |||||||||||||
(2) Pricing relates to the changes in unit prices on comparable products | |||||||||||||
(3) Product sales mix relates to the impact of changes in the mix of products shipped. Other includes the impact of changes in foreign currency exchange rates on the translation of sales denominated in currencies other than the US dollar. | |||||||||||||
| Three Months Ended | Six months Ended | ||||||||||||
December 31, 2006 | September 30, 2007 | December 31, 2006 | |||||||||||
| reconciled to | reconciled to | reconciled to | |||||||||||
| EARNINGS PER SHARE RECONCILIATION (4) | December 31, 2007 | December 31, 2007 | December 31, 2007 | ||||||||||
| EARNINGS (LOSS) PER SHARE | $ | 0.10 | $ | 0.34 | $ | 0.20 | |||||||
| Volume (5) | 0.03 | 0.02 | (0.01 | ) | |||||||||
| Pricing / product mix (6) | 0.30 | 0.06 | 0.52 | ||||||||||
| Costs (7) | (0.12 | ) | (0.07 | ) | (0.12 | ) | |||||||
| Restructuring, impairment, early debt extinguishment costs | 0.01 | 0.02 | - | ||||||||||
| Corporate / Other (8) | 0.03 | (0.02 | ) | 0.11 | |||||||||
| EARNINGS PER SHARE | $ | 0.35 | $ | 0.35 | $ | 0.70 | |||||||
(4) All calculations are net of taxes | |||||||||||||
(5) Volume - Changes in volume on comparable products at prior period gross margins (price, unit cost and mix are at the same levels as the prior quarter). | |||||||||||||
(6) Pricing / Product Mix - Impact of changes in selling prices (on comparable products) and changes in the mix of products shipped. | |||||||||||||
(7) Costs - Changes in production volume, energy related prices, price and usage of chemicals and raw materials, transportation costs, direct spending and selling, research and administrative expenses. | |||||||||||||
(8) Corporate / Other - Net interest expense, intangible amortization, foreign exchange gain(loss), gain(loss) on sale of assets, other income(expense), and tax adjustments and changes in tax rate. | |||||||||||||
Contacts:
Steve Dean, 901-320-8352
Senior
Vice President and Chief Financial Officer
or
Shirley Spears,
901-320-8125
Investor Relations
www.bkitech.com
