NewPage Corporation News
NewPage Sales and Earnings Up Sharply in First Quarter
"First quarter 2008 volume and average sales prices were both up considerably, and while most of the increase in volume was from the acquisition, average coated paper prices were also up significantly," said
The following schedule details key performance and cost metrics for the first quarter: First Quarter 2008 2007 Coated paper volume - 000s tons 1,037 508 Price per ton of coated paper $953 $873 Market downtime - 000s tons 0 27 Maintenance expense - $ million $82 $39 Gross margin 11.1% 8.0% SG&A expense - % of net sales 4.6% 5.5%
"From an operations perspective, we had a solid quarter and we didn't take any market-related downtime," said
Costs in the first quarter of 2008 increased over the first quarter of 2007 driven by oil and natural gas and their effect on freight and raw materials. "We expect crude oil and energy costs to remain high throughout the year," added Willett. "The increase in maintenance expense primarily reflects the inclusion of SENA's mills. SG&A expenses declined as a percent of net sales primarily as a result of higher sales prices and efficiencies generated by combining the two companies. We remain on track to meet our previously announced target of
During the quarter, NewPage announced its restructuring plans to create the platform essential to become one company, remain competitive in the marketplace, serve customers more efficiently and deliver the expected synergies. As a result of these actions, during the first quarter of 2008, the company incurred total pretax charges of
Interest expense for the first quarter was
There were no outstanding borrowings under the revolving senior secured credit facility as of
"Recently, we were honored to receive 'Supplier of the Year' awards from xpedx in three separate regions of
Conference Call
The NewPage First Quarter 2008 Conference Call and Webcast is scheduled for today,
Analysts and investors may access the call by dialing 800-230-1093 (toll-free domestic) or (612) 288-0337 (international). A replay of the call can be accessed via telephone 800-475-6701 (toll-free domestic) or 320-365-3844 (international), access code 919663. The replay will be available starting at
About NewPage Corporation
Headquartered in
NewPage owns paper mills in
Forward-looking Statements
This press release may contain "forward-looking statements" as that term is defined in 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, and may contain the words "believe," "anticipate," "expect," "estimate," "intend," "project," "plan," "will likely continue," "will likely result," or words or phrases with similar meaning. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of 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 ability to realize the anticipated benefits of the acquisition of SENA, including anticipated synergies; our substantial level of indebtedness; changes in the supply of, demand for, or prices of our products; the activities of competitors, including those that may be engaged in unfair trade practices; changes in significant operating expenses, including raw material and energy costs; changes in currency exchange rates; changes in the availability of capital; general economic and business conditions in
NewPage Corporation Consolidated Statements of Operations (unaudited) First Quarters Ended March 31, 2008 and 2007 (in millions) First Quarter First Quarter Ended March 31, Ended March 31, 2008 2007 Net sales $1,190 $476 Cost of sales 1,058 438 Selling, general and administrative expenses 55 26 Interest expense 71 33 Other (income) expense, net (6) - Income (loss) before income taxes 12 (21) Income tax (benefit) 5 (1) Net income (loss) $7 $(20) NewPage Corporation Condensed Consolidated Balance Sheets (unaudited) March 31, 2008 and December 31, 2007 (in millions) March 31, December 31, ASSETS 2008 2007 Cash and cash equivalents $105 $143 Accounts receivable, net 390 351 Inventories 611 584 Other current assets 40 43 Total current assets 1,146 1,121 Property, plant and equipment, net 3,539 3,564 Other assets 204 198 TOTAL ASSETS $4,889 $4,883 LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable $311 $338 Accrued expenses 299 290 Current maturities of long-term debt 16 16 Total current liabilities 626 644 Long-term debt 2,905 2,909 Other long-term obligations 389 351 Deferred income taxes 300 293 Commitments and contingencies Minority interest 30 31 Stockholder's equity: Common stock, 100 shares issued and outstanding, $0.01 per share par value - - Additional paid-in capital 729 729 Accumulated deficit (90) (97) Accumulated other comprehensive income (loss) - 23 Total stockholder's equity 639 655 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $4,889 $4,883 NewPage Corporation Condensed Consolidated Statements of Cash Flows (unaudited) First Quarters Ended March 31, 2008 and 2007 (in millions) First Quarter First Quarter Ended March 31, Ended March 31, 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $7 $(20) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 75 34 Amortization of debt issuance costs and debt discount 7 2 Loss on sale of assets 1 - Deferred income taxes 5 (1) LIFO effect 5 10 Equity award expense 6 1 Changes in operating assets and liabilities (112) (23) Net cash provided by (used in) operating activities (6) 3 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (24) (14) Proceeds from sale of assets 5 - Net cash provided by (used in) investing activities (19) (14) CASH FLOWS FROM FINANCING ACTIVITIES Distributions from Rumford Cogeneration Company, L.P. to limited partners (2) (4) Loans to parents (6) (4) Payments on long-term debt (4) (1) Net cash provided by (used in) financing activities (12) (9) Effect of exchange rate changes on cash and cash equivalents (1) - Net increase (decrease) in cash and cash equivalents (38) (20) Cash and cash equivalents at beginning of period 143 44 Cash and cash equivalents at end of period $105 $24 NewPage Corporation Reconciliation of Net Income (Loss) to EBITDA (unaudited) First Quarters Ended March 31, 2008 and 2007 (in millions) First Quarter First Quarter Ended March 31, Ended March 31, 2008 2007 Net income (loss) $7 $(20) Plus: Interest expense 71 33 Income tax expense (benefit) 5 (1) Depreciation and amortization 75 34 Earnings before interest, taxes, depreciation and amortization (EBITDA) $158 $46 EBITDA is not a measure of our performance under accounting principles generally accepted in the United States (\"GAAP\"), is not intended to represent net income (loss), and should not be used as an alternative to net income (loss) as an indicator of performance. EBITDA is shown because it is a primary component of certain covenants under our senior secured credit facilities and is a basis upon which our management assesses performance. In addition, our management believes EBITDA is useful to investors because it and similar measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies with substantial financial leverage. The use of EBITDA instead of net income (loss) has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP.
SOURCE NewPage Corporation
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