Buckeye Technologies Inc. (NYSE:BKI) today announced earnings for fiscal year 2013. Net sales for the year were $812 million, down $82 million or 9% compared to net sales from continuing operations in fiscal 2012. Specialty Fibers external sales were down $72 million or 11% due to a small drop in shipment volume, lower fluff pulp and specialty cotton fibers pricing, and unfavorable sales mix due to weak market conditions in Europe. Nonwovens sales were down $10 million entirely due to the sale of the Merfin Systems converting business in mid-fiscal year 2012.
Adjusted net income* for the 2013 fiscal year was $92 million or $2.32 per share, compared to a record $111 million or $2.76 per share in fiscal 2012, and the previous record net income of $91 million or $2.23 per share in fiscal 2011. The two biggest drivers of the reduction in adjusted net income between fiscal years 2012 and 2013 were lower fluff pulp prices and unfavorable sales mix in the specialty fibers segment, where operating income was down $34 million year over year. Operating income for the nonwoven materials segment was up $9 million in fiscal year 2013 compared to fiscal year 2012 due to a large reduction in fixed manufacturing costs resulting from the closure of our Delta, B.C., Canada airlaid facility in December 2012.
Fourth quarter net sales were $216 million, down $9 million or 4% versus net sales of $225 million in the fourth quarter of fiscal 2012. While shipment volume was up 9%, driven by increased shipments from our Foley wood fibers facility, this was offset by unfavorable mix and lower selling prices in our specialty fibers segment.
Fourth quarter adjusted net income* was $23.0 million or $0.58 per share. This excludes net after-tax charges of $5.0 million, or $0.13 per share, primarily relating to the pending merger with Georgia-Pacific and adjustments related to the CBC fuel tax credit. Adjusted net income* was down compared to the prior year’s $26.2 million or $0.66 per share, which excluded net income of $2.3 million, or $0.05 per share, primarily consisting of adjustments relating to the cellulosic biofuel credit. This $3.2 million reduction in adjusted net income* was mainly driven by unfavorable sales mix and by lower selling prices for fluff and specialty wood pulp. We generated $61.4 million in net cash provided by operating activities during the quarter, invested $30.2 million in capital projects (including $15.5 million on the oxygen delignification and specialty conversion projects), reduced debt by $21.1 million to $41.2 million, and paid a regular quarterly dividend of $3.5 million. At the end of the quarter our cash and short term investments stood at $58.1 million.
Comparing the fourth quarter to the third quarter of fiscal 2013, sales were up $20 million or 10% as shipment volume was up 15% in our specialty fibers segment and was flat in our nonwovens segment. Adjusted EPS* of $0.58 was up $0.05 versus the third quarter on the increase in shipment volume.
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 and Germany. 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, Buckeye’s pending business combination with Georgia-Pacific LLC, 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”, “and adjusted earnings per share”, “free cash flow”. The first three measures are equal to operating income, net 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, gain on sale of assets, and GP merger related expenses. “Free cash flow” is equal to net cash provided by operating activities less net cash used in investing activities (excluding purchase of short term investments).
($ in Millions) | Q4-2013 | Q4-2012 | Q3-2013 | YTD-2013 | YTD-2012 | ||||||||||
Operating income | |||||||||||||||
Operating income in accordance with GAAP | $27.8 | $40.0 | $29.9 | $121.4 | $164.0 | ||||||||||
Special items: | |||||||||||||||
GP merger related expenses | 5.5 | --- | --- | 5.5 | --- | ||||||||||
Restructuring costs | 0.3 | --- | 0.8 | 9.9 | 0.3 | ||||||||||
Asset and Goodwill impairment | --- | 0.3 | 0.7 | 3.6 | 4.5 | ||||||||||
Adjusted operating income (Excludes Americana) | $33.6 | $40.3 | $31.4 | $140.4 | $168.8 | ||||||||||
Net income | Q4-2013 | Q4-2012 | Q3-2013 | YTD-2013 | YTD-2012 | ||||||||||
Net income in accordance with GAAP | $18.0 | $28.5 | $28.3 | $88.7 | $90.0 | ||||||||||
Special items, after-tax: | |||||||||||||||
GP merger related expenses | 3.6 | --- | --- | 3.6 | --- | ||||||||||
Gain on sale of assets held for sale | --- | --- | (7.3) | (7.3) | --- | ||||||||||
Earn-out from King sale | --- | --- | (0.2) | (0.2) | --- | ||||||||||
AFMC / CBC | 1.1 | (3.3) | 0.1 | (4.4) | (10.5) | ||||||||||
Restructuring costs | 0.3 | 1.2 | 0.8 | 9.6 | 1.9 | ||||||||||
Asset and Goodwill impairment | --- | (0.2) | (0.7) | 2.2 | 29.6 | ||||||||||
Adjusted net income | $23.0 | $26.2 | $21.0 | $92.2 | $111.0 | ||||||||||
Earnings per share (EPS) - Diluted | Q4-2013 | Q4-2012 | Q3-2013 | YTD-2013 | YTD-2012 | ||||||||||
EPS in accordance with GAAP | $0.45 | $0.71 | $0.71 | $2.23 | $2.24 | ||||||||||
Special items, after-tax, per share: | |||||||||||||||
GP merger related expenses | 0.09 | --- | --- | 0.09 | --- | ||||||||||
Gain on sale of assets held for sale | --- | --- | (0.19) | (0.19) | --- | ||||||||||
Earn-out from King sale | --- | --- | --- | --- | --- | ||||||||||
AFMC / CBC | 0.03 | (0.08) | --- | (0.11) | (0.27) | ||||||||||
Restructuring costs | 0.01 | 0.03 | 0.02 | 0.24 | 0.05 | ||||||||||
Asset and Goodwill Impairment | --- | --- | (0.01) | 0.06 | 0.74 | ||||||||||
Adjusted EPS | $0.58 | $0.66 | $0.53 | $2.32 | $2.76 | ||||||||||
($ in Millions) | Q4-2013 | Q4-2012 | Q3-2013 | YTD-2013 | YTD-2012 | ||||||||||
Free Cash Flow | |||||||||||||||
Net cash provided by operating activities | $61.4 | $87.4 | $46.1 | $136.2 | $171.8 | ||||||||||
Proceeds from sale of assets | 0.2 | 6.1 | 19.9 | 20.1 | 11.7 | ||||||||||
Purchases of property, plant & equipment / Other | (30.4) | (38.9) | (27.4) | (109.9) | (85.4) | ||||||||||
Proceeds from insurance settlement related to capital investments | --- | --- | --- | 4.3 | --- | ||||||||||
Free Cash Flow | $31.2 | $54.6 | $38.6 | $50.7 | $98.1 | ||||||||||
Loss from Discontinued Operations
As a result of the disposition of our Americana operations in Q4 2012, we have reported the results of the operations for this business, including the loss recognized from the sale and less applicable income taxes (benefit), in discontinued operations in our consolidated income statement. The table below shows the detail behind the loss from discontinued operations for each period reported in the press release financial statements.
($ in Millions) | Q4-2013 | Q4-2012 | YTD2013 | YTD2012 | ||||||||
Net Sales | $--- | $--- | $-- | $14.3 | ||||||||
COGS | --- | 0.3 | --- | 14.9 | ||||||||
Gross Margin | --- | (0.3) | -- | (0.6) | ||||||||
Asset Impairment Cost | --- | 0.1 | -- | 49.2 | ||||||||
Other Operating Expense | --- | 1.8 | --- | 2.7 | ||||||||
Operating Loss | --- | (2.2) | -- | (52.5) | ||||||||
Net Interest Income | --- | 0.1 | -- | 0.5 | ||||||||
Foreign Exchange & Other | --- | (0.3) | --- | (0.2) | ||||||||
Loss before Tax | --- | (2.4) | -- | (52.2) | ||||||||
Income Tax Benefit | --- | (0.5) | (1.4) | (23.3) | ||||||||
Income (Loss) from Discontinued Operations | $--- | $(1.9) | $1.4 | $(28.9) | ||||||||
BUCKEYE TECHNOLOGIES INC. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||
June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
Net sales | $ | 215,597 | $ | 195,562 | $ | 224,940 | $ | 812,450 | $ | 894,881 | |||||||||||||||
Cost of goods sold | 167,247 | 152,204 | 171,877 | 623,303 | 677,396 | ||||||||||||||||||||
Gross margin | 48,350 | 43,358 | 53,063 | 189,147 | 217,485 | ||||||||||||||||||||
Gross margin as a percentage of sales | 22.4 | % | 22.2 | % | 23.6 | % | 23.3 | % | 24.3 | % | |||||||||||||||
Selling, research and administrative expenses | 19,776 | 11,408 | 12,257 | 56,568 | 46,704 | ||||||||||||||||||||
Amortization of intangibles and other | 531 | 517 | 510 | 2,070 | 2,021 | ||||||||||||||||||||
Asset impairment loss | - | 701 | 329 | 3,591 | 2,094 | ||||||||||||||||||||
Goodwill impairment loss | - | - | - | - | 2,425 | ||||||||||||||||||||
Restructuring costs | 304 | 855 | - | 9,918 | 234 | ||||||||||||||||||||
Other operating income | (71 | ) | - | - | (4,351 | ) | (32 | ) | |||||||||||||||||
Operating income | 27,810 | 29,877 | 39,967 | 121,351 | 164,039 | ||||||||||||||||||||
Net interest expense and amortization of debt costs | (352 | ) | (314 | ) | 5,211 | (1,869 | ) | (499 | ) | ||||||||||||||||
Gain on sale of assets held for sale | - | 7,346 | - | 7,346 | - | ||||||||||||||||||||
Foreign exchange and other | 1 | 508 | 301 | 88 | 386 | ||||||||||||||||||||
Income from continuing operations before income taxes | 27,459 | 37,417 | 45,479 | 126,916 | 163,926 | ||||||||||||||||||||
Income tax expense | 9,443 | 10,524 | 15,075 | 39,607 | 45,011 | ||||||||||||||||||||
Income from continuing operations | 18,016 | 26,893 | 30,404 | 87,309 | 118,915 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | 1,369 | (1,889 | ) | 1,369 | (28,887 | ) | ||||||||||||||||||
Net Income | $ | 18,016 | $ | 28,262 | $ | 28,515 | $ | 88,678 | $ | 90,028 | |||||||||||||||
Computation of diluted earnings per share under the two-class method: | |||||||||||||||||||||||||
Net income attributable to shareholders | $ | 18,016 | $ | 28,262 | $ | 28,515 | $ | 88,678 | $ | 90,028 | |||||||||||||||
Less: Distributed and undistributed income allocated to participating securities (nonvested stock) | (186 | ) | (287 | ) | (341 | ) | (929 | ) | (1,248 | ) | |||||||||||||||
Distributed and undistributed income available to shareholders | $ | 17,830 | $ | 27,975 | $ | 28,174 | $ | 87,749 | $ | 88,780 | |||||||||||||||
Diluted income per share from continuing operations | $ | 0.45 | $ | 0.68 | $ | 0.76 | $ | 2.20 | $ | 2.98 | |||||||||||||||
Diluted income (loss) per share from discontinued operations | - | 0.03 | (0.05 | ) | 0.03 | (0.74 | ) | ||||||||||||||||||
Diluted earnings per share | $ | 0.45 | $ | 0.71 | $ | 0.71 | $ | 2.23 | $ | 2.24 |
BUCKEYE TECHNOLOGIES INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In thousands) | ||||||||||||
June 30 | March 31 | June 30 | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 17,130 | $ | 55,220 | $ | 38,284 | ||||||
Short term investments | 40,932 | - | 8,813 | |||||||||
Accounts receivable, net | 125,682 | 128,624 | 126,705 | |||||||||
Inventories | 96,821 | 105,058 | 90,183 | |||||||||
Deferred income taxes and other | 7,955 | 10,882 | 25,697 | |||||||||
Total current assets | 288,520 | 299,784 | 289,682 | |||||||||
Property, plant and equipment, net | 551,234 | 532,278 | 492,109 | |||||||||
Deferred income taxes | 44,421 | 40,678 | 42,427 | |||||||||
Intellectual property and other, net | 11,146 | 11,624 | 13,193 | |||||||||
Total assets | $ | 895,321 | $ | 884,364 | $ | 837,411 | ||||||
Liabilities and stockholders' equity | ||||||||||||
Current liabilities: | ||||||||||||
Trade accounts payable | $ | 38,269 | $ | 28,372 | $ | 40,600 | ||||||
Accrued expenses | 43,664 | 35,708 | 43,135 | |||||||||
Other current liabilities | - | - | - | |||||||||
Total current liabilities | 81,933 | 64,080 | 83,735 | |||||||||
Long-term debt | 41,172 | 62,271 | 58,578 | |||||||||
Deferred income taxes | 4,399 | 4,536 | 4,930 | |||||||||
Other liabilities | 85,124 | 89,637 | 87,132 | |||||||||
Stockholders' equity | 682,693 | 663,840 | 603,036 | |||||||||
Total liabilities and stockholders' equity | $ | 895,321 | $ | 884,364 | $ | 837,411 |
BUCKEYE TECHNOLOGIES INC. | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||||||
Net income | $ | 18,016 | $ | 28,262 | $ | 28,515 | $ | 88,678 | $ | 90,028 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||
Asset impairment loss | - | 701 | 465 | 3,591 | 51,268 | |||||||||||||||||||||||
Depreciation | 11,517 | 10,975 | 12,091 | 46,377 | 50,136 | |||||||||||||||||||||||
Amortization | 686 | 672 | 665 | 2,691 | 2,641 | |||||||||||||||||||||||
Loss on goodwill impairment | - | - | - | - | 2,425 | |||||||||||||||||||||||
Deferred income taxes | 81 | (422 | ) | 1,253 | 3,533 | (14,454 | ) | |||||||||||||||||||||
Noncurrent AFMC refund payable | (3,676 | ) | - | (3,648 | ) | (388 | ) | 10,247 | ||||||||||||||||||||
Gain on sale of assets held for sale | - | (7,346 | ) | - | (7,346 | ) | - | |||||||||||||||||||||
Loss on disposal of equipment | 319 | 253 | 954 | 1,653 | 1,602 | |||||||||||||||||||||||
Insurance settlement | - | - | - | (4,277 | ) | - | ||||||||||||||||||||||
Provision for bad debts | 330 | 373 | 37 | 663 | (57 | ) | ||||||||||||||||||||||
Excess tax benefit from stock based compensation | (89 | ) | (81 | ) | (1,367 | ) | (2,380 | ) | (4,062 | ) | ||||||||||||||||||
Stock-based compensation expense | 1,723 | 1,210 | 868 | 5,603 | 4,245 | |||||||||||||||||||||||
Other | 2,076 | 241 | 2,107 | 2,320 | 1,861 | |||||||||||||||||||||||
Change in operating assets and liabilities | ||||||||||||||||||||||||||||
Accounts receivable | (5,212 | ) | (359 | ) | 3,108 | 1,052 | 6,548 | |||||||||||||||||||||
Income tax receivable | 8,104 | 8,747 | 6 | (2 | ) | - | ||||||||||||||||||||||
Inventories | 8,437 | 366 | 20,227 | (6,046 | ) | (5,119 | ) | |||||||||||||||||||||
Other assets | (1,659 | ) | 13,120 | (2,889 | ) | 12,074 | 803 | |||||||||||||||||||||
Accounts payable and other liabilities | 20,715 | (10,651 | ) | 24,977 | (11,612 | ) | (26,349 | ) | ||||||||||||||||||||
Net cash provided by operating activities | 61,368 | 46,061 | 87,369 | 136,184 | 171,763 | |||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||
Purchases of property, plant & equipment | (30,233 | ) | (27,178 | ) | (38,734 | ) | (109,362 | ) | (84,940 | ) | ||||||||||||||||||
Proceeds from sale of assets | 220 | 19,896 | 6,085 | 20,116 | 11,760 | |||||||||||||||||||||||
Short term investments | (41,274 | ) | 9,075 | (9,213 | ) | (32,199 | ) | (9,213 | ) | |||||||||||||||||||
Proceeds from insurance settlement related to capital investments | - | - | - | 4,277 | - | |||||||||||||||||||||||
Other | (191 | ) | (202 | ) | (128 | ) | (520 | ) | (481 | ) | ||||||||||||||||||
Net cash provided by (used in) investing activities | (71,478 | ) | 1,591 | (41,990 | ) | (117,688 | ) | (82,874 | ) | |||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||
Net borrowings (payments) under revolving line of credit | (21,099 | ) | (37,008 | ) | (11,561 | ) | (17,406 | ) | (38,343 | ) | ||||||||||||||||||
Excess tax benefit from stock based compensation | 89 | 81 | 1,367 | 2,380 | 4,062 | |||||||||||||||||||||||
Purchase of treasury shares | - | - | (22,327 | ) | (9,203 | ) | (32,916 | ) | ||||||||||||||||||||
Net proceeds from sale of equity interests | 284 | 135 | 253 | 2,503 | 3,054 | |||||||||||||||||||||||
Payment of dividend | (3,536 | ) | (3,608 | ) | (3,164 | ) | (13,737 | ) | (10,756 | ) | ||||||||||||||||||
Other | - | - | (1,057 | ) | (938 | ) | (1,526 | ) | ||||||||||||||||||||
Net cash provided by (used in) financing activities | (24,262 | ) | (40,400 | ) | (36,489 | ) | (36,401 | ) | (76,425 | ) | ||||||||||||||||||
Effect of foreign currency rate fluctuations on cash | (3,718 | ) | (1,342 | ) | (7,773 | ) | (3,249 | ) | (4,674 | ) | ||||||||||||||||||
Increase in cash and cash equivalents | (38,090 | ) | 5,910 | 1,117 | (21,154 | ) | 7,790 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 55,220 | 49,310 | 37,167 | 38,284 | 30,494 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 17,130 | $ | 55,220 | $ | 38,284 | $ | 17,130 | $ | 38,284 |
BUCKEYE TECHNOLOGIES INC. | ||||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
SEGMENT RESULTS | June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
Specialty Fibers | ||||||||||||||||||||||||||
Net sales | $ | 161,862 | $ | 142,601 | $ | 170,950 | $ | 601,173 | $ | 686,733 | ||||||||||||||||
Operating income (a) | 31,427 | 27,723 | 39,106 | 131,295 | 165,441 | |||||||||||||||||||||
Depreciation and amortization (b) | 8,204 | 7,682 | 7,670 | 31,246 | 31,033 | |||||||||||||||||||||
Total assets | 571,305 | 549,821 | 487,764 | 571,305 | 487,764 | |||||||||||||||||||||
Capital expenditures | 25,706 | 24,323 | 33,368 | 96,901 | 73,364 | |||||||||||||||||||||
Nonwoven Materials | ||||||||||||||||||||||||||
Net sales | $ | 58,599 | $ | 57,380 | $ | 61,827 | $ | 228,543 | $ | 239,007 | ||||||||||||||||
Operating income (a) | 6,172 | 5,786 | 3,626 | 21,199 | 11,735 | |||||||||||||||||||||
Depreciation and amortization (b) | (8,395 | ) | 2,905 | 3,945 | 2,160 | 16,087 | ||||||||||||||||||||
Total assets | 147,258 | 153,970 | 182,924 | 147,258 | 182,924 | |||||||||||||||||||||
Capital expenditures | 3,145 | 2,002 | 4,171 | 8,697 | 9,368 | |||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||
Net sales | $ | (4,864 | ) | $ | (4,419 | ) | $ | (7,837 | ) | $ | (17,266 | ) | $ | (30,859 | ) | |||||||||||
Operating income (loss) (a) | (9,790 | ) | (3,632 | ) | (2,765 | ) | (31,143 | ) | (13,137 | ) | ||||||||||||||||
Depreciation and amortization (b) | 9,829 | 905 | 987 | 12,631 | 3,861 | |||||||||||||||||||||
Total assets | 176,758 | 180,573 | 166,723 | 176,758 | 166,723 | |||||||||||||||||||||
Capital expenditures | 1,382 | 853 | 1,195 | 3,764 | 2,208 | |||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Net sales | $ | 215,597 | $ | 195,562 | $ | 224,940 | $ | 812,450 | $ | 894,881 | ||||||||||||||||
Operating income (a) | 27,809 | 29,877 | 39,967 | 121,351 | 164,039 | |||||||||||||||||||||
Depreciation and amortization (b) | 9,638 | 11,492 | 12,602 | 46,037 | 50,981 | |||||||||||||||||||||
Total assets | 895,321 | 884,364 | 837,411 | 895,321 | 837,411 | |||||||||||||||||||||
Capital expenditures | 30,233 | 27,178 | 38,734 | 109,362 | 84,940 | |||||||||||||||||||||
(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 | Year Ended | |||||||||||||||||||||||||
ADJUSTED EBITDA | June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
Net income | $ | 18,015 | $ | 28,262 | $ | 28,515 | $ | 88,678 | $ | 90,028 | ||||||||||||||||
Elimination of discontinued operations | - | (1,369 | ) | 1,889 | (1,369 | ) | 28,887 | |||||||||||||||||||
Income tax expense (benefit) | 9,443 | 9,155 | 15,075 | 39,607 | 45,011 | |||||||||||||||||||||
Interest expense | 220 | 202 | (5,296 | ) | 1,407 | 140 | ||||||||||||||||||||
Amortization of debt costs | 156 | 155 | 155 | 622 | 620 | |||||||||||||||||||||
Depreciation, depletion and amortization | 12,048 | 11,492 | 12,601 | 48,447 | 50,980 | |||||||||||||||||||||
EBITDA | 39,882 | 47,897 | 52,939 | 177,392 | 215,666 | |||||||||||||||||||||
Asset impairments | - | 701 | (2,408 | ) | 3,591 | 1,782 | ||||||||||||||||||||
Restructuring | 304 | 855 | 2,737 | 9,918 | 2,971 | |||||||||||||||||||||
Non cash charges | 319 | 253 | 803 | 1,668 | 1,645 | |||||||||||||||||||||
Gain on sale of assets held for sale | - | (7,346 | ) | - | (7,346 | ) | - | |||||||||||||||||||
Adjusted EBITDA | $ | 40,505 | $ | 42,360 | $ | 54,071 | $ | 185,223 | $ | 222,064 | ||||||||||||||||
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. |
Contacts:
Steve Dean, 901-320-8352
Executive
Vice President
and Chief Financial Officer
or
Eric
Whaley, 901-320-8509
Investor Relations
Website: www.bkitech.com