Welcome!

News Feed Item

NewPage Announces Second Quarter 2014 Financial Results

MIAMISBURG, Ohio, Aug. 1, 2014 /PRNewswire/ -- NewPage Holdings Inc. ("NewPage") today announced its results of operations for the second quarter of 2014.

Net sales in the second quarter of 2014 were $733 million compared to $720 million in the second quarter of 2013. Net sales improved due to higher sales volume of paper partially offset by lower paper prices. Paper pricing is impacted by lower industry demand. Paper sales volume totaled 811,000 tons and 783,000 tons for the second quarter of 2014 and 2013. Average paper prices were $885 per ton and $892 per ton in the second quarter of 2014 and 2013.

For the second quarter of 2014, net loss was $30 million compared to a net loss of $13 million in the second quarter of 2013. The increase in net loss was the result of higher input costs of $20 million driven by the continuing effects of extreme weather-related factors through April 2014 and lower paper prices, partially offset by lower non-cash stock compensation expense, lower pension expense, cost reduction initiatives and other general and administrative expenses.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization as further adjusted as shown in the attached reconciliation) was $43 million in the second quarter of 2014 compared to $50 million in second quarter of 2013.

NewPage ended the second quarter with total liquidity of $271 million, consisting of $263 million of availability under the revolving credit facility and $8 million of available cash and cash equivalents.

Operating cash flows were $26 million in the second quarter of 2014 compared to $19 million in the second quarter of 2013. Operating cash flows in the second quarter of 2013 includes $16 million in non-recurring bankruptcy-related items.  For the six months ended June 30, 2014, the company used $51 million of cash in operations compared to $23 million for the six months ended June 30, 2013. The increase is primarily the result of higher input costs, driven by weather-related factors, higher cash interest and other cash charges associated with the February 2014 debt refinancing, partially offset by a reduction in cash requirements for bankruptcy-related items. Cash used for operating activities during the six months ended June 30, 2013 includes $58 million in non-recurring bankruptcy-related payments.

Additional Information
The NewPage second quarter ended June 30, 2014 Form 10-Q as filed with the U.S. Securities and Exchange Commission today can be found on the NewPage website. The company believes this information is sufficient to answer questions and no conference call is planned.

About NewPage
NewPage is a leading producer of printing and specialty papers in North America with $3.1 billion in net sales for the year ended December 31, 2013. NewPage is headquartered in Miamisburg, Ohio, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.

The company's portfolio of paper products includes coated, supercalendered and specialty papers. These papers are used in commercial printing to create corporate collateral, magazines, catalogs, books, coupons, inserts and direct mail as well as in specialty paper applications including beverage bottle labels, food and medical packaging, pressure-sensitive labels and release liners. To learn more, visit www.NewPageCorp.com.

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. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws. The company does not intend, and undertakes no obligation, to update any forward-looking statements.

 

NewPage Holdings Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

  Three Months Ended June 30, 2014 and 2013 

 Dollars in millions, except per share amounts  




2014



2013







Net sales

$

733


$

720







Cost of sales


714



686

Selling, general and administrative expenses


28



34

Interest expense


21



13

Income (loss) before income taxes


(30)



(13)

Income tax (benefit)




Net income (loss)

$

(30)


$

(13)







Net income (loss) per share:






     Basic and diluted

$

(4.24)


$

(1.84)







Weighted average common shares outstanding:






     Basic and diluted


7,092,477



7,080,000













 

NewPage Holdings Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

 Six Months Ended June 30, 2014 and 2013 

 Dollars in millions, except per share amounts  




2014



2013







Net sales

$

1,490


$

1,476







Cost of sales


1,469



1,401

Selling, general and administrative expenses


52



75

Interest expense


70



24

Income (loss) before income taxes


(101)



(24)

Income tax (benefit)




Net income (loss)

$

(101)


$

(24)







Net income (loss) per share:






     Basic and diluted

$

(14.25)


$

(3.34)







Weighted average common shares outstanding:






     Basic and diluted


7,090,989



7,080,000







 Cash dividends paid per common share 

$

34.35


$

 

NewPage Holdings Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

June 30, 2014 and December 31, 2013

Dollars in millions, except per share amounts











2014



2013

ASSETS







Cash and cash equivalents


$

8


$

83

Restricted cash



7



Accounts receivable, net



216



204

Inventories



530



520

Other current assets



17



25

     Total current assets



778



832








Property, plant and equipment, net



1,156



1,208

Other assets



159



135

TOTAL ASSETS


$

2,093


$

2,175








LIABILITIES AND EQUITY 







Accounts payable


$

195


$

168

Other current liabilities



142



177

Current maturities of long-term debt



45



     Total current liabilities



382



345








Long-term debt



737



487

Other long-term obligations



298



308

Commitments and contingencies














EQUITY 







Preferred stock, 100,000 shares authorized, $0.001 per share par value





Common stock, par value $0.001 (16,000,000 shares authorized with 7,104,079







     shares issued and 7,092,477 outstanding on June 30, 2014, and with







     7,093,924 shares issued and 7,087,239 outstanding on December 31, 2013)





Treasury stock, at cost (11,602 shares on June 30, 2014 and 6,685 shares on







     December 31, 2013)



(1)



Additional paid-in capital



572



814

Accumulated deficit



(103)



(2)

Accumulated other comprehensive income (loss)



208



223

     Total equity 



676



1,035

TOTAL LIABILITIES AND EQUITY 


$

2,093


$

2,175








 

NewPage Holdings Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

Six Months Ended June 30, 2014 and 2013

 Dollars in millions 











2014



2013

CASH FLOWS FROM OPERATING ACTIVITIES







Net income (loss)


$

(101)


$

(24)

Adjustments to reconcile net income (loss) to







net cash provided by (used for) operating activities:







  Depreciation and amortization



92



91

  Non-cash interest expense



3



3

  Non-cash loss on extinguishment/modification of debt 



23



  (Gain) loss on disposal of assets



1



1

  Pension expense (income)



(5)



2

  Pension funding



(15)



(9)

  Equity award expense (income)



(2)



8

  Deferred income taxes



1



  Changes in operating assets and liabilities:







        Accounts receivable



(12)



(1)

        Inventories



(10)



(63)

        Other operating assets



(13)



(19)

        Accounts payable



27



(18)

        Accrued expenses and other obligations



(40)



6

    Net cash provided by (used for) operating activities



(51)



(23)








CASH FLOWS FROM INVESTING ACTIVITIES







Capital expenditures



(39)



(31)

Proceeds from sales of assets



4



Restricted cash



(7)



    Net cash provided by (used for) investing activities



(42)



(31)








CASH FLOWS FROM FINANCING ACTIVITIES







Payment of financing costs



(28)



(1)

Proceeds from issuance of long-term debt



735



Repayments of long-term debt



(495)



(3)

Common stock cash dividends paid



(243)



Acquisition of treasury stock



(1)



Borrowings on revolving credit facility



319



171

Payments on revolving credit facility



(269)



(152)

    Net cash provided by (used for) financing activities



18



15








Net increase (decrease) in cash and cash equivalents



(75)



(39)

  Cash and cash equivalents at beginning of period



83



43

  Cash and cash equivalents at end of period


$

8


$

4








 

NewPage Holdings Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (unaudited)

Dollars in millions






















Six






Three



Six



Twelve





Months



Year



Months



Months



Months





Ended



Ended



Ended



Ended



Ended





June 30,



December 31,



June 30,



June 30,



June 30,





2013



2013



2014



2014



2014


















Net income (loss)


$

(24)


$

(2)


$

(30)


$

(101)


$

(79)


Interest expense



24



47



21



70



93


Income tax (benefit)





(2)







(2)


Depreciation and amortization



91



184



46



92



185

EBITDA


$

91


$

227


$

37


$

61


$

197



















Equity awards



8



14



1



(2)



4


(Gain) loss on disposal of assets



1



2





1



2


Integration and related severance costs and other charges



8



14







6


Post-emergence bankruptcy-related items



3



4



1



1



2


Merger related costs



1



8



4



6



13


Other



(1)







1



2

Adjusted EBITDA(1)


$

111


$

269


$

43


$

68


$

226


Pro forma effects of project cost savings program(2)















56

Adjusted EBITDA (including pro forma effects of 
















   cost savings program)














$

282


















  (1)

Does not include pro forma effects of our project cost savings program used in certain covenants under our credit facilities.


  (2)

Represents cost savings expected to be realized as part of our project cost savings program.


























EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation and amortization. EBITDA and Adjusted EBITDA (as described in the table above) are not measures of our performance under accounting principles generally accepted in the United States ("U.S. GAAP"), are not intended to represent net income (loss), and should not be used as alternatives to net income (loss) as indicators of performance. EBITDA and Adjusted EBITDA are shown because they are bases upon which our management assesses performance and are primary components of certain covenants under our credit facilities. In addition, our management believes EBITDA and Adjusted EBITDA are useful to investors because they and similar measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. The use of EBITDA and Adjusted EBITDA instead of net income (loss) has limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.






































 

 

NewPage Corporation Logo.

 

Logo - http://photos.prnewswire.com/prnh/20110217/CL49746LOGO

SOURCE NewPage Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.