-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FjdAoEnXpEyafLD9xayh4Ec/AlTqeFhVmXXerVs8cEcHaMFDA0RwjPoP2iFy/44g qwsEz0+JV/kg7CF0aeSQ3w== 0000899597-03-000014.txt : 20030422 0000899597-03-000014.hdr.sgml : 20030422 20030422173014 ACCESSION NUMBER: 0000899597-03-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Other events FILED AS OF DATE: 20030422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BUCKEYE TECHNOLOGIES INC CENTRAL INDEX KEY: 0000899597 STANDARD INDUSTRIAL CLASSIFICATION: PULP MILLS [2611] IRS NUMBER: 621518973 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14030 FILM NUMBER: 03658872 BUSINESS ADDRESS: STREET 1: PO BOX 80407 CITY: MEMPHIS STATE: TN ZIP: 38108-0407 BUSINESS PHONE: 9013208174 MAIL ADDRESS: STREET 1: PO BOX 80407 CITY: MEMPHIS STATE: TN ZIP: 38108-0407 FORMER COMPANY: FORMER CONFORMED NAME: BUCKEYE CELLULOSE CORP DATE OF NAME CHANGE: 19930326 8-K 1 mar3103-8k.txt EARNINGS RELEASE MARCH 31, 2003 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE THE SECURITIES ACT OF 1934 - -------------------------------------------------------------------------------- DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): April 9, 2003 - -------------------------------------------------------------------------------- BUCKEYE TECHNOLOGIES INC. (Exact name of registrant as specified in its charter)
DELAWARE 33-60032 62-1518973 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
1001 Tillman Street, Memphis, Tennessee 38112 (Address of principal executive offices) Registrant's telephone, including area code (901) 320-8100 - -------------------------------------------------------------------------------- ITEM 5. OTHER EVENTS On April 9, 2003, the Registrant issued the following press release announcing its scheduled conference call regarding its operating results for the third quarter of fiscal year 2003 ended March 31, 2003. Conference Call BUCKEYE TECHNOLOGIES INC. Third Quarter Results We have scheduled a conference call for Wednesday, April 23, 2003 9:30 a.m. Central Management participating on the call will include David B. Ferraro, Chief Executive Officer John B. Crowe, President and Chief Operating Officer Kristopher J. Matula, Sr. Vice President, Nonwovens and Corporate Strategy Gayle L. Powelson, Sr. Vice President and Chief Financial Officer Gordon B. Mitchell, Investor Relations Manager All interested parties are invited to listen to the audio conference call live or tape delayed via the website WWW.STREETEVENTS.COM or via the Company's website homepage at WWW.BKITECH.COM. The replay will be archived on these websites through May 22, 2003. In addition, persons interested in listening by telephone may dial in at (800) 888-5452 within the United States. International callers should dial (719) 867-0660. Participants should call no later than 9:15 a.m. CT. To listen to the telephone replay of the conference call, dial (888) 203-1112 or (719) 457-0820. The passcode is 564638. The telephone replay will be available until midnight April 26, 2003. A press release will be issued via Business Wire after the market closes on April 22. If you do not receive a copy of this release, please contact Gordon Mitchell at (901) 320-8256. We look forward to your participation. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, BUCKEYE TECHNOLOGIES INC. -------------------------------------- Gayle L. Powelson Senior Vice President, Chief Financial Officer April 9, 2003 EX-99 2 exhibit99-1.txt EXHIBIT 99.1 News from Buckeye Technologies Inc. FOR IMMEDIATE RELEASE Contacts: Kris Matula, Senior Vice President 901-320-8588 Gordon Mitchell Investor Relations Manager 901-320-8256 Website: www.bkitech.com BUCKEYE ANNOUNCES JANUARY-MARCH RESULTS MEMPHIS, TN April 22, 2003 - Buckeye Technologies Inc. (NYSE:BKI) today announced that its net sales in the quarter ended March 31, 2003 were $163.5 million, essentially equal to the comparable quarter of the prior year. During January-March the Company incurred a loss of one cent per share (net loss of $0.4 million after tax), excluding the previously disclosed non-cash asset impairment charge of 52 cents per share (net loss of $19.3 million after tax), which primarily related to the partial closure of the Lumberton, North Carolina cotton linter pulp plant. Excluding the impairment and restructuring charges, the Company's after tax loss is a $3 million improvement versus the loss incurred in the comparable quarter of the prior year. Buckeye Chairman David B. Ferraro commented, "The combination of energy cost increases and a raw material write-down led to a small operating loss in the just completed quarter. However, we are pleased to report continued progress in reducing our net debt. The Company's net debt stood at $609.2 million on March 31, which is down $17.6 million from December 31 and $48.7 million below March 31 a year ago. Reducing debt is a strategic imperative for the Company." Mr. Ferraro added, "We are also pleased that January-March sales were 6.8% above the immediately preceding quarter. The increased demand for our products enabled us to reduce inventories by $6 million from the December 31 level. These higher sales, combined with the price increases that we are implementing, are indications that our business is improving." Buckeye, a leading manufacturer and marketer of specialty cellulose and absorbent products, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, Ireland 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 (in $000)
Quarter Ended Nine Months Ended March 31 March 31 -------------------------------- --------------------------------- 2003 2002 2003 2002 -------------------------------- --------------------------------- Net sales $163,497 $164,225 $473,068 $475,090 Cost of goods sold 143,224 146,279 410,619 418,163 -------------------------------- --------------------------------- Gross margin 20,273 17,946 62,449 56,927 Selling, research and administrative expenses 9,573 9,551 27,353 26,652 Impairment of long-lived assets 29,746 - 29,746 - Restructuring costs - 965 - 965 -------------------------------- --------------------------------- Operating income (loss) (19,046) 7,430 5,350 29,310 Net interest expense and amortization of debt costs 11,433 12,261 35,242 35,641 Foreign exchange, amortization of intangibles and other 1,163 682 2,181 1,203 -------------------------------- --------------------------------- Loss before income taxes and cumulative effect of change in accounting (31,642) (5,513) (32,073) (7,534) Income tax benefit (11,888) (1,344) (12,340) (2,529) -------------------------------- --------------------------------- Loss before cumulative effect of change in accounting (19,754) (4,169) (19,733) (5,005) Cumulative effect of change in accounting (net of tax of $0) - - - (a) (11,500) -------------------------------- --------------------------------- Net loss $ (19,754) $ (4,169) $ (19,733) $(16,505) ================================ ================================= Loss per share before cumulative effect of change in accounting Basic earnings (loss) per share $ (0.53) $ (0.12) $ (0.53) $ (0.14) Diluted earnings (loss) per share $ (0.53) $ (0.12) $ (0.53) $ (0.14) Cumulative effect of change in accounting Basic earnings (loss) per share $ - $ - $ - $ (0.33) Diluted earnings (loss) per share $ - $ - $ - $ (0.33) Earnings (loss) per share Basic earnings (loss) per share $ (0.53) $ (0.12) $ (0.53) $ (0.48) Diluted earnings (loss) per share $ (0.53) $ (0.12) $ (0.53) $ (0.48) Weighted average shares for basic earnings per share 36,973,478 34,762,090 36,962,525 34,626,231 Adjusted weighted average shares for diluted earnings per share 36,973,478 34,762,090 36,962,525 34,626,231 EBITDA $22,380 $19,590 $70,557 $63,754
(a) This reflects the impairment of Goodwill in the Company's converting business, in accordance with the Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets. BUCKEYE TECHNOLOGIES INC. CONSOLIDATED BALANCE SHEETS (in $000)
March 31 June 30 2003 2002 -------------------------------- Assets Current assets: Cash and cash equivalents $ 39,681 $ 56,006 Cash, restricted 3,375 3,375 Short-term investments 5,000 8,863 Accounts receivable, net 126,195 97,516 Inventories 142,173 145,103 Deferred income taxes and other 15,066 29,653 -------------------------------- Total current assets 331,490 340,516 Property, plant and equipment, net 592,112 627,752 Goodwill, net 121,490 120,399 Intellectual property and other, net 47,444 46,070 --------------------------------- Total assets $1,092,536 $1,134,737 ================================= Liabilities and stockholders' equity Current liabilities: Trade accounts payable 39,576 $ 33,789 Accrued expenses 46,330 47,196 Current portion of capital lease obligations 572 793 Current portion of long-term debt 40,437 22,000 --------------------------------- Total current liabilities 126,915 103,778 Long-term debt 621,613 675,396 Deferred income taxes 74,802 79,295 Capital lease obligations 2,850 3,029 Other liabilities 19,625 19,579 Stockholders' equity 246,731 253,660 ---------------------------------- Total liabilities and stockholders' equity $1,092,536 $1,134,737 ==================================
BUCKEYE TECHNOLOGIES INC. SUPPLEMENTAL FINANCIAL DATA (in $ millions except per share data)
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- ------------- -------------- Net Sales $ 163.5 $ 10.4 $(0.7) Gross Margin 20.3 (1.5) 2.4 Operating Income before Impairment and Restructuring (1) 10.7 (2.3) 2.3 Net Income (Loss) before Impairment and Restructuring (2) (0.4) (1.0) 3.1 Diluted Earnings (Loss) Per Share before Impairment and Restructuring (3) (0.01) (0.02) 0.09 EBITDA (4) 22.4 (2.0) 2.8 % of sales 13.7 % (2.2) pts 1.8 pts Depreciation, Depletion & Amortization 12.0 0.4 0.8 Capital Spending 8.1 1.5 4.1 Net Debt (5) 609.2 (17.6) (48.7) Credit Facility Availability at Quarter-End 25.0 10.0 24.6
Notes (1) Operating Income before Impairment and Restructuring is presented to assist in evaluating the performance of the Company's on-going operations enabling meaningful comparisons of past and present operating results. This information along with Operating Income (Loss) provides for a more complete analysis of results of operations. Operating Income (Loss) is the most directly comparable GAAP measure.
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- -------------- -------------- Operating Income (Loss) (19.0) (32.0) (26.5) Asset impairment 29.7 29.7 29.7 Restructuring costs - - (1.0) --------------- -------------- -------------- Operating Income before Impairment and Restructuring 10.7 (2.3) 2.3 =============== ============== ==============
(2) Net Income (Loss) before Impairment and Restructuring is presented to assist in evaluating the performance of the Company's on-going operations enabling meaningful comparisons of past and present results. This information along with Net Income (Loss) provides for a more complete analysis of results of operations. Net Income (Loss) is the most directly comparable GAAP measure.
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- -------------- -------------- Net Income (Loss) (19.8) (20.3) (15.6) Asset impairment, net of tax 19.3 19.3 19.3 Restructuring costs, net of tax - - (0.7) --------------- -------------- -------------- Net Income (Loss) before Impairment and Restructuring (0.4) (1.0) 3.1 =============== ============== ==============
(3) Diluted Earnings (Loss) Per Share before Impairment and Restructuring is presented to assist in evaluating the performance of the Company's on-going operations enabling meaningful comparisons of past and present results. This information along with Diluted Earnings (Loss) Per Share provides for a more complete analysis of results of operations. Diluted Earnings (Loss) Per Share is the most directly comparable GAAP measure.
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- -------------- -------------- Diluted Earnings (Loss) Per Share (0.53) (0.54) (0.41) Asset impairment, net of tax 0.52 0.52 0.52 Restructuring costs, net of tax - - (0.02) --------------- -------------- -------------- Diluted Earnings (Loss) Per Share before Impairment and Restructuring (0.01) (0.02) 0.09 =============== ============== ==============
(4) EBITDA is presented as an additional means of evaluating the Company's financial condition, liquidity and its ability to satisfy rating agency and creditor requirements. The Company incurs significant non-cash charges, including depreciation and amortization, related to the capital assets utilized in its operations. EBITDA is a central measure used in the Company's compliance with debt covenants related to its credit facility. EBITDA as defined by the revolving credit facility is "earnings before interest, taxes, depreciation and amortization, goodwill impairment and extraordinary and nonrecurring gains and losses." Using this information along with Operating Income (Loss) provides for a more complete analysis of results of operations. Operating Income (Loss) is the most directly comparable GAAP measure.
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- -------------- -------------- Operating Income (Loss) (19.0) (32.0) (26.5) Foreign exchange gain (loss) (0.6) (0.7) 0.6 Miscellaneous income (expense) 0.3 0.5 0.4 Depreciation, depletion, and amortization 12.0 0.4 0.8 Asset impairment 29.7 29.7 29.7 Restructuring costs - - (1.0) Other - - (0.1) --------------- -------------- -------------- EBITDA 22.4 (2.0) 2.8 =============== ============== ==============
(5) Net Debt is presented as an additional means of evaluating the Company's financial condition, liquidity and its ability to satisfy rating agency and creditor requirements. The Company holds a significant amount cash, cash equivalents and short-term investments due to the "Permitted Indebtedness" limitation defined in the bond indentures. Net debt is defined as debt and capital lease obligations, net of the interest rate swap, cash and cash equivalents, restricted cash and short-term investments. Using this information along with Long-Term Debt and Capital Lease Obligation balances provides a more complete analysis of the companies financial position. Long Term Debt and Capital Lease Obligations are most directly comparable GAAP measures.
Results Variance to Variance to Jan-Mar 03 Oct-Dec 02 Jan-Mar 02 --------------- -------------- -------------- Total Debt on Balance Sheet 665.5 (12.0) (45.3) less: Interest rate swap non-cash fair value adjustment to Debt (8.3) (2.0) (7.6) less: Cash, cash equivalents, restricted cash, and short-term investments (48.1) (3.6) 4.2 --------------- -------------- -------------- Net Debt 609.2 (17.6) (48.7) =============== ============== ==============
(6) EBDITDA reconciliation for comparative periods
Three Months Ended Nine Months Ended March 31, March 31, ----------------------------- ------------------------------------- 2003 2002 2003 2002 ------------- ------------ ---------------- --------------- Operating Income (Loss) (19.0) 7.4 5.4 29.3 Foreign exchange gain (loss) (0.6) (0.1) 0.8 0.1 Miscellaneous income (expense) 0.3 - (0.4) 0.6 Depreciation, depletion, and amortization 12.0 11.2 35.1 33.3 Asset impairment 29.7 - 29.7 - Restructuring costs - 1.0 - 1.0 Other - 0.1 - (0.5) ------------- ------------ ---------------- --------------- EBITDA 22.4 19.6 70.6 63.8 ============= ============= ================= ===============
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