NORCROSS, Ga.--(BUSINESS WIRE)--Jul. 24, 2012-- RockTenn (NYSE:RKT) today reported earnings for the quarter ended
June 30, 2012 of
$0.81 per diluted share and adjusted earnings of
$0.95 per diluted share.
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Three Months
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Three Months
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Nine Months
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Nine Months
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Ended
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Ended
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Ended
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Ended
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June 30,
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June 30,
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June 30,
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June 30,
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2012
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2011
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2012
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2011
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Earnings (loss) per diluted share
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$
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0.81
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$
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(0.60
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)
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$
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2.31
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$
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1.30
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Restructuring and other costs and operating losses and transition costs due to plant closures |
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0.14
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0.71
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0.61
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0.96
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Loss on extinguishment of debt |
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― |
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0.49 |
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0.17 |
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0.58 |
Acquisition inventory step-up |
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― |
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0.69 |
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― |
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0.81 |
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Adjusted earnings per diluted share
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$
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0.95
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$
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1.29
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$
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3.09
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$
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3.65
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Third Quarter Results
- Net sales of
$2,303.2 million for the third quarter of fiscal 2012 increased
$921.1 million over the third quarter of fiscal 2011, primarily as a result of the
May 27, 2011, Smurfit-Stone acquisition.
- Segment income was
$159.3 million up
$13.6 million or 9.3% over the prior year quarter after adjusting the prior year quarter to eliminate
$55.4 million of pre-tax acquisition inventory step-up. The increase was primarily a result of the Smurfit-Stone acquisition and increased profitability in our Consumer Packaging segment.
- RockTenn’s restructuring and other costs and operating losses and transition costs due to plant closures, net of related noncontrolling interest were
$0.14 per diluted share after-tax, for the third quarter of fiscal 2012. These costs consisted primarily of
$7.5 million of pre-tax integration and acquisition costs, including professional services, employee and other costs,
$6.2 million of pre-tax facility closure charges primarily related to corrugated container plants acquired in the Smurfit-Stone Acquisition, the permanent shutdown of the medium machine at
Hodge, Louisiana containerboard mill, net of a gain on sale of our
Columbus, Indiana laminated converting facility and
$1.9 million of pre-tax operating losses and transition costs primarily related to corrugated container plants acquired in the Smurfit-Stone acquisition.
Chairman and Chief Executive Officer’s Statement
RockTenn Chairman and Chief Executive Officer
James A. Rubright stated, “RockTenn’s third quarter earnings per share reflect continued solid performance across our business units with particularly strong results in our consumer segment where lower recycled fiber and energy costs, strong operating performance and sales growth in merchandising displays drove segment earnings up 37% over the prior year quarter. Our corrugated segment performance, while generally above our expectations, reflected approximately
$10 million (
$.09 per share) in expense from higher than expected costs, lost production and supply chain disruption associated primarily with major capital projects at our
Hodge, Louisiana mill.
Segment Results
Containerboard and Paperboard Tons Produced
Total tons produced in the third quarter of fiscal 2012 were approximately 2.13 million tons, an increase of approximately 0.9 million tons over the prior year quarter due to the Smurfit-Stone acquisition, and a sequential decrease of approximately 36,000 tons from the second quarter of fiscal 2012. The sequential quarter decrease was primarily due to scheduled major maintenance outages and capital projects at our containerboard mills.
Corrugated Packaging Segment
Corrugated Packaging segment net sales increased
$810.7 million to
$1,545.2 million in the third quarter of fiscal 2012 compared to the prior year quarter, due primarily to the Smurfit-Stone acquisition. Segment income increased to
$73.4 million in the third quarter of fiscal 2012 compared to
$24.6 million in the prior year quarter. The third quarter of fiscal 2011 included
$55.4 million of pre-tax acquisition inventory step-up compared to
$0.2 million in the third quarter of fiscal 2012. Corrugated Packaging segment EBITDA margin was 11.3% for the third quarter of fiscal 2012, as the higher than expected costs for our
Hodge outage offset otherwise solid performance amid improving industry fundamentals as the quarter came to a close.
Consumer Packaging Segment
Consumer Packaging segment net sales increased
$49.3 million in the third quarter of fiscal 2012 compared to the prior year quarter, primarily due to increased display sales including those from the Smurfit-Stone acquisition. Segment income was
$83.7 million in the third quarter of fiscal 2012 compared to
$61.1 million in the prior year quarter due primarily to increased display sales, lower recycled fiber and energy costs that were partially offset by higher freight costs. Consumer Packaging segment EBITDA margin was 17.1% for the third quarter of fiscal 2012.
Recycling and Waste Solutions Segment
Recycling and Waste Solutions segment net sales increased
$191.5 million over the prior year third quarter to
$338.9 million primarily due to the Smurfit-Stone acquisition. Segment income was
$2.2 million in the third quarter of fiscal 2012 compared to
$4.6 million in the prior year as declining recycled fiber prices compressed margins.
Cash Provided From Operating, Financing and Investing Activities
At
June 30, 2012, total debt was
$3.36 billion and our Leverage Ratio (as hereinafter defined) was 2.84 times, well below our maximum credit agreement covenant of 3.75 times. Effective for the
September 30, 2012 quarter, our maximum credit agreement covenant is 3.5 times. Net debt (as hereinafter defined) decreased by
$32.6 million in the June quarter to
$3.34 billion. Cash provided by operations was
$203.6 million in the third quarter of fiscal 2012, after pension and postretirement funding more than expense of
$54.1 million. We invested
$146.1 million in capital expenditures and returned
$14.2 million in dividends to our shareholders.
Conference Call
We will host a conference call to discuss our results of operations for the third quarter of fiscal 2012 and other topics that may be raised during the discussion at
9:00 a.m., Eastern Time, on
July 25, 2012. The conference call will be webcast live with an accompanying slide presentation, along with a copy of this press release, at
www.rocktenn.com
.
Investors who wish to participate in the webcast via teleconference should dial 888-790-4710 (inside the U.S.) or 773-756-0961 (outside the U.S.) at least 15 minutes prior to the start of the call and enter the passcode ROCKTENN. Replays of the call will be available through
August 8, 2012 and can be accessed at 866-351-2785 (U.S. callers) and 203-369-0055 (outside the U.S.).
About RockTenn
RockTenn (NYSE:RKT) is one of
North America's leading integrated manufacturers of corrugated and consumer packaging and recycling solutions. RockTenn’s 26,000 employees are committed to exceeding their customers’ expectations – every time. The Company operates locations in
the United States,
Canada,
Mexico,
Chile,
Argentina and
China. For more information, visit
www.rocktenn.com
.
Cautionary Statements
Statements in this release that do not relate strictly to historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and use words such as will, estimate, anticipate, project, intend, or expect, or refer to future time periods, and include statements made in this report regarding, among other things our belief that the corrugated industry exhibited improving industry fundamentals as the quarter came to a close constitute forward-looking statements within the meaning of the federal securities laws. These statements are subject to certain risks and uncertainties including with respect to our expectations regarding economic, competitive and market conditions generally; expected volumes and price levels of purchases by customers; fiber and energy costs; costs associated with facility closures; competitive conditions in our businesses and possible adverse actions of our customers, our competitors and suppliers. These expectations are based on assumptions that management believes are reasonable; however, undue reliance should not be placed on these forward-looking statements because these risks and uncertainties could cause actual results to differ materially from those contained in any forward-looking statements. There are many other factors and uncertainties that impact these forward-looking statements that we cannot predict accurately, including our ability to integrate Smurfit-Stone or to achieve benefits from the Smurfit-Stone acquisition, including synergies and performance improvements. Further, our business is subject to a number of general risks that would affect any such forward-looking statements including, among others, decreases in demand for our products; increases in energy, raw materials, shipping and capital equipment costs; reduced supply of raw materials; fluctuations in selling prices and volumes; intense competition; the potential loss of certain key customers; changes in environmental and other governmental regulation; and adverse changes in general market and industry conditions. These risks are more particularly described in our filings with the
Securities and Exchange Commission, including under the caption “Business―Forward-Looking Information” and “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
September 30, 2011. The information contained in this release speaks as of the date hereof and we do not undertake any obligation to update this information as future events unfold.
ROCK-TENN COMPANY
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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(UNAUDITED)
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(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
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FOR THE THREE MONTHS ENDED |
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FOR THE NINE MONTHS ENDED |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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2012 |
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2011 |
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2012 |
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2011 |
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NET SALES
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$
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2,303.2
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$
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1,382.1
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$
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6,853.8
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$
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2,936.1
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Cost of Goods Sold |
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1,943.4 |
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1,169.7 |
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5,741.0 |
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2,378.6 |
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Gross Profit |
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359.8 |
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212.4 |
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1,112.8 |
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557.5 |
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Selling, General and Administrative Expenses |
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229.6 |
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145.3 |
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685.1 |
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316.8 |
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Restructuring and Other Costs, net |
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13.7 |
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55.5 |
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52.1 |
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62.4 |
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Operating Profit |
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116.5 |
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11.6 |
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375.6 |
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178.3 |
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Interest Expense |
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(26.8 |
) |
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(22.8 |
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(91.7 |
) |
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(55.7 |
) |
Loss on Extinguishment of Debt |
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(0.1 |
) |
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(39.5 |
) |
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(19.6 |
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(39.5 |
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Interest Income and Other Income, net |
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0.2 |
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4.1 |
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1.1 |
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4.1 |
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Equity in Income of Unconsolidated Entities |
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0.8 |
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0.6 |
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2.9 |
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1.2 |
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INCOME (LOSS) BEFORE INCOME TAXES
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90.6
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(46.0
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)
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268.3
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88.4
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Income Tax (Expense) Benefit
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(31.3 |
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17.6 |
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(99.5 |
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(27.2 |
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CONSOLIDATED NET INCOME (LOSS)
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59.3
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(28.4
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)
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168.8
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61.2
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Less: Net Income Attributable to Noncontrolling Interests |
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(1.1 |
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(1.7 |
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(2.0 |
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(4.0 |
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NET INCOME (LOSS) ATTRIBUTABLE TO
ROCK-TENN COMPANY SHAREHOLDERS
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$
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58.2
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$
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(30.1
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)
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$
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166.8
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$
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57.2
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Computation of diluted earnings (loss) per share under the two-class method (in millions, except per share data): |
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Net income (loss) attributable to Rock-Tenn Company shareholders |
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$ |
58.2 |
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$ |
(30.1 |
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$ |
166.8 |
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$ |
57.2 |
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Less: Distributed and undistributed income available to participating securities |
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-
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(0.1
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)
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(0.6
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)
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(0.7
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)
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Distributed and undistributed income (loss) available to Rock-Tenn Company shareholders |
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$ |
58.2 |
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$ |
(30.2 |
) |
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$ |
166.2 |
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$ |
56.5 |
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Diluted weighted average shares outstanding |
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72.3 |
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50.7 |
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71.9 |
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43.3 |
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Diluted earnings (loss) per share |
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$ |
0.81 |
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$ |
(0.60 |
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$ |
2.31 |
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$ |
1.30 |
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ROCK-TENN COMPANY
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SEGMENT INFORMATION
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(UNAUDITED)
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(IN MILLIONS)
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FOR THE THREE MONTHS ENDED |
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FOR THE NINE MONTHS ENDED |
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|
June 30, |
|
June 30, |
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June 30, |
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June 30, |
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|
2012 |
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|
2011 |
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2012 |
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2011 |
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NET SALES:
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Corrugated Packaging |
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$ |
1,545.2 |
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$ |
734.5 |
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|
$ |
4,573.9 |
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|
$ |
1,142.2 |
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Consumer Packaging |
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628.9 |
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|
579.6 |
|
|
|
|
1,896.9 |
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|
|
1,691.9 |
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Recycling and Waste Solutions |
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338.9 |
|
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|
147.4 |
|
|
|
|
964.4 |
|
|
|
230.1 |
|
Intersegment Eliminations |
|
|
|
(209.8 |
) |
|
|
(79.4 |
) |
|
|
|
(581.4 |
) |
|
|
(128.1 |
) |
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TOTAL NET SALES
|
|
|
$
|
2,303.2
|
|
|
$
|
1,382.1
|
|
|
|
$
|
6,853.8
|
|
|
$
|
2,936.1
|
|
|
|
|
|
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|
SEGMENT INCOME:
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|
|
|
|
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|
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|
Corrugated Packaging
(1)
|
|
|
$ |
73.4 |
|
|
$ |
24.6 |
|
|
|
$ |
251.4 |
|
|
$ |
92.1 |
|
Consumer Packaging |
|
|
|
83.7 |
|
|
|
61.1 |
|
|
|
|
248.4 |
|
|
|
193.1 |
|
Recycling and Waste Solutions |
|
|
|
2.2 |
|
|
|
4.6 |
|
|
|
|
9.9 |
|
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|
9.5 |
|
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TOTAL SEGMENT INCOME
|
|
|
$
|
159.3
|
|
|
$
|
90.3
|
|
|
|
$
|
509.7
|
|
|
$
|
294.7
|
|
|
|
|
|
|
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|
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|
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|
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Restructuring and Other Costs, net |
|
|
|
(13.7 |
) |
|
|
(55.5 |
) |
|
|
|
(52.1 |
) |
|
|
(62.4 |
) |
Non-Allocated Expenses |
|
|
|
(28.3 |
) |
|
|
(22.6 |
) |
|
|
|
(79.1 |
) |
|
|
(52.8 |
) |
Interest Expense |
|
|
|
(26.8 |
) |
|
|
(22.8 |
) |
|
|
|
(91.7 |
) |
|
|
(55.7 |
) |
Loss on Extinguishment of Debt |
|
|
|
(0.1 |
) |
|
|
(39.5 |
) |
|
|
|
(19.6 |
) |
|
|
(39.5 |
) |
Interest Income and Other Income, net |
|
|
|
0.2 |
|
|
|
4.1 |
|
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|
1.1 |
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|
4.1 |
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INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
$
|
90.6
|
|
|
$
|
(46.0
|
)
|
|
|
$
|
268.3
|
|
|
$
|
88.4
|
|
(1)
|
|
After $6.7 million of pre-tax losses at our Matane, Quebec containerboard mill in the nine months ended June 30, 2012 and after inventory step-up expense of $0.2 million and $0.6 million pre-tax in the three and nine months ended June 30, 2012, respectively, and $55.4 million pre-tax in the three and nine months ended June 30, 2011. |
|
|
|
|
|
|
ROCK-TENN COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
(IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED |
|
|
FOR THE NINE MONTHS ENDED |
|
|
|
June 30, |
|
June 30, |
|
|
June 30, |
|
June 30, |
|
|
|
2012 |
|
2011 |
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) |
|
|
$ |
59.3 |
|
|
$ |
(28.4 |
) |
|
|
$ |
168.8 |
|
|
$ |
61.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
131.4 |
|
|
|
73.5 |
|
|
|
|
396.7 |
|
|
|
147.4 |
|
Deferred income tax expense |
|
|
|
29.9 |
|
|
|
(17.7 |
) |
|
|
|
90.7 |
|
|
|
8.8 |
|
Loss on extinguishment of debt |
|
|
|
0.1 |
|
|
|
39.5 |
|
|
|
|
19.6 |
|
|
|
39.5 |
|
Share-based compensation expense |
|
|
|
9.3 |
|
|
|
7.2 |
|
|
|
|
21.1 |
|
|
|
16.6 |
|
Gain on disposal of plant and equipment and other, net |
|
|
|
(6.9 |
) |
|
|
- |
|
|
|
|
(12.9 |
) |
|
|
(0.1 |
) |
Equity in income of unconsolidated entities |
|
|
|
(0.8 |
) |
|
|
(0.6 |
) |
|
|
|
(2.9 |
) |
|
|
(1.2 |
) |
Settlement of foreign currency hedge and interest rate swaps |
|
|
|
- |
|
|
|
1.7 |
|
|
|
|
(2.8 |
) |
|
|
1.7 |
|
Pension funding (more) less than expense |
|
|
|
(54.1 |
) |
|
|
(3.1 |
) |
|
|
|
(162.3 |
) |
|
|
5.4 |
|
Impairment adjustments and other non-cash items |
|
|
|
3.6 |
|
|
|
3.5 |
|
|
|
|
19.1 |
|
|
|
4.2 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
(9.9 |
) |
|
|
(11.3 |
) |
|
|
|
63.8 |
|
|
|
(5.8 |
) |
Inventories |
|
|
|
65.0 |
|
|
|
39.3 |
|
|
|
|
8.5 |
|
|
|
30.6 |
|
Other assets |
|
|
|
(11.7 |
) |
|
|
37.6 |
|
|
|
|
(44.4 |
) |
|
|
35.7 |
|
Accounts payable |
|
|
|
(9.4 |
) |
|
|
8.1 |
|
|
|
|
(35.7 |
) |
|
|
18.8 |
|
Income taxes |
|
|
|
(4.9 |
) |
|
|
(54.3 |
) |
|
|
|
10.6 |
|
|
|
(53.1 |
) |
Accrued liabilities and other |
|
|
|
2.7 |
|
|
|
50.7 |
|
|
|
|
3.5 |
|
|
|
30.0 |
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
|
203.6
|
|
|
|
145.7
|
|
|
|
|
541.4
|
|
|
|
339.7
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
(146.1 |
) |
|
|
(48.7 |
) |
|
|
|
(348.3 |
) |
|
|
(107.5 |
) |
Cash paid for purchase of businesses, net of cash acquired |
|
|
|
(33.0 |
) |
|
|
(1,301.5 |
) |
|
|
|
(120.5 |
) |
|
|
(1,301.5 |
) |
Investment in unconsolidated entities |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
|
(1.7 |
) |
|
|
(1.3 |
) |
Return of capital from unconsolidated entities |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
|
1.6 |
|
|
|
0.6 |
|
Proceeds from sale of property, plant and equipment |
|
|
|
4.5 |
|
|
|
7.0 |
|
|
|
|
37.1 |
|
|
|
7.6 |
|
Proceeds from property, plant and equipment insurance settlement |
|
|
|
10.2 |
|
|
|
- |
|
|
|
|
10.2 |
|
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED FOR INVESTING ACTIVITIES
|
|
|
|
(163.9
|
)
|
|
|
(1,343.1
|
)
|
|
|
|
(421.6
|
)
|
|
|
(1,401.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of notes |
|
|
|
- |
|
|
|
- |
|
|
|
|
748.9 |
|
|
|
- |
|
Additions to revolving credit facilities |
|
|
|
99.9 |
|
|
|
340.4 |
|
|
|
|
310.6 |
|
|
|
363.5 |
|
Repayments of revolving credit facilities |
|
|
|
(63.4 |
) |
|
|
(250.2 |
) |
|
|
|
(144.3 |
) |
|
|
(279.5 |
) |
Additions to debt |
|
|
|
30.8 |
|
|
|
2,842.0 |
|
|
|
|
313.8 |
|
|
|
2,877.0 |
|
Repayments of debt |
|
|
|
(110.6 |
) |
|
|
(1,641.6 |
) |
|
|
|
(1,319.3 |
) |
|
|
(1,786.1 |
) |
Debt issuance costs |
|
|
|
(0.8 |
) |
|
|
(42.6 |
) |
|
|
|
(6.5 |
) |
|
|
(43.1 |
) |
Cash paid for debt extinguishment costs |
|
|
|
- |
|
|
|
(37.9 |
) |
|
|
|
(13.9 |
) |
|
|
(37.9 |
) |
Issuances of common stock, net of related minimum tax withholdings |
|
|
|
2.1 |
|
|
|
27.9 |
|
|
|
|
0.4 |
|
|
|
24.2 |
|
Excess tax benefits from share-based compensation |
|
|
|
2.9 |
|
|
|
6.7 |
|
|
|
|
10.8 |
|
|
|
7.3 |
|
Advances from (repayments to) unconsolidated entity |
|
|
|
(0.7 |
) |
|
|
0.9 |
|
|
|
|
(0.3 |
) |
|
|
0.6 |
|
Cash dividends paid to shareholders |
|
|
|
(14.2 |
) |
|
|
(7.9 |
) |
|
|
|
(42.4 |
) |
|
|
(23.6 |
) |
Cash distributions to noncontrolling interests |
|
|
|
(0.4 |
) |
|
|
(1.0 |
) |
|
|
|
(0.4 |
) |
|
|
(4.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
|
|
|
|
(54.4
|
)
|
|
|
1,236.7
|
|
|
|
|
(142.6
|
)
|
|
|
1,098.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
(0.7 |
) |
|
|
0.4 |
|
|
|
|
0.6 |
|
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
(15.4
|
)
|
|
|
39.7
|
|
|
|
|
(22.2
|
)
|
|
|
35.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
|
34.9 |
|
|
|
11.9 |
|
|
|
|
41.7 |
|
|
|
15.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
19.5
|
|
|
$
|
51.6
|
|
|
|
$
|
19.5
|
|
|
$
|
51.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
Cash paid (received) during the period for: |
|
|
|
|
|
|
|
|
|
|
Income taxes, net of refunds |
|
|
$ |
3.6 |
|
|
$ |
3.4 |
|
|
|
$ |
(13.0 |
) |
|
$ |
19.6 |
|
Interest, net of amounts capitalized |
|
|
|
15.5 |
|
|
|
10.8 |
|
|
|
|
75.6 |
|
|
|
42.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROCK-TENN COMPANY
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
September 30, |
|
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
19.5 |
|
|
$ |
41.7 |
|
Restricted cash |
|
|
|
40.6 |
|
|
|
41.1 |
|
Accounts receivable (net of allowances of $23.4 and $30.1) |
|
|
|
1,065.9 |
|
|
|
1,109.6 |
|
Inventories |
|
|
|
855.5 |
|
|
|
849.8 |
|
Other current assets |
|
|
|
104.3 |
|
|
|
186.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
|
|
|
2,085.8
|
|
|
|
2,228.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment at cost:
|
|
|
|
|
|
Land and buildings |
|
|
|
1,196.9 |
|
|
|
1,135.1 |
|
Machinery and equipment |
|
|
|
5,988.0 |
|
|
|
5,691.1 |
|
Transportation equipment |
|
|
|
13.4 |
|
|
|
12.8 |
|
Leasehold improvements |
|
|
|
18.4
|
|
|
|
6.9
|
|
|
|
|
|
7,216.7 |
|
|
|
6,845.9 |
|
Less accumulated depreciation and amortization |
|
|
|
(1,632.7
|
)
|
|
|
(1,318.7
|
)
|
Net property, plant and equipment |
|
|
|
5,584.0 |
|
|
|
5,527.2 |
|
Goodwill |
|
|
|
1,859.1 |
|
|
|
1,839.4 |
|
Intangibles, net |
|
|
|
817.9 |
|
|
|
799.4 |
|
Other assets |
|
|
|
244.3 |
|
|
|
171.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
$
|
10,591.1
|
|
|
$
|
10,566.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Current portion of debt |
|
|
$ |
257.7 |
|
|
$ |
143.3 |
|
Accounts payable |
|
|
|
758.5 |
|
|
|
780.7 |
|
Accrued compensation and benefits |
|
|
|
208.4 |
|
|
|
220.0 |
|
Other current liabilities |
|
|
|
219.3 |
|
|
|
174.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
|
|
|
1,443.9
|
|
|
|
1,318.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due after one year |
|
|
|
3,102.6 |
|
|
|
3,302.5 |
|
|
|
|
|
|
|
Pension liabilities |
|
|
|
1,249.8 |
|
|
|
1,431.0 |
|
Postretirement medical liabilities |
|
|
|
158.1 |
|
|
|
155.2 |
|
Deferred income taxes |
|
|
|
907.7 |
|
|
|
827.1 |
|
Other long-term liabilities |
|
|
|
173.7 |
|
|
|
153.3 |
|
Redeemable noncontrolling interests |
|
|
|
8.5 |
|
|
|
6.3 |
|
|
|
|
|
|
|
Total Rock-Tenn Company shareholders' equity |
|
|
|
3,546.2 |
|
|
|
3,371.6 |
|
Noncontrolling interests |
|
|
|
0.6
|
|
|
|
0.7
|
|
Total Equity |
|
|
|
3,546.8 |
|
|
|
3,372.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
10,591.1
|
|
|
$
|
10,566.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rock-Tenn Company Quarterly Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Production in Thousands of Tons) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
st
Quarter
|
|
|
2
nd
Quarter
|
|
|
3
rd
Quarter
|
|
|
4
th
Quarter
|
|
|
Fiscal Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Containerboard Production
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
234.2 |
|
|
231.6 |
|
|
243.4 |
|
|
246.1 |
|
|
955.3 |
|
2011 |
|
|
246.2 |
|
|
245.5 |
|
|
858.5 |
|
|
1,923.2 |
|
|
3,273.4 |
|
2012 |
|
|
1,843.5 |
|
|
1,736.5 |
|
|
1,676.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recycled Paperboard Production
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
223.6 |
|
|
227.8 |
|
|
234.2 |
|
|
235.1 |
|
|
920.7 |
|
2011 |
|
|
226.7 |
|
|
235.2 |
|
|
239.4 |
|
|
242.0 |
|
|
943.3 |
|
2012 |
|
|
227.3 |
|
|
234.6 |
|
|
234.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBS / SBL Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
85.1 |
|
|
83.5 |
|
|
87.4 |
|
|
84.1 |
|
|
340.1 |
|
2011 |
|
|
87.4 |
|
|
86.6 |
|
|
87.3 |
|
|
123.7 |
|
|
385.0 |
|
2012 |
|
|
115.2 |
|
|
112.7 |
|
|
118.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
25.6 |
|
|
23.8 |
|
|
24.1 |
|
|
26.1 |
|
|
99.6 |
|
2011 |
|
|
23.4 |
|
|
26.2 |
|
|
47.1 |
|
|
101.1 |
|
|
197.8 |
|
2012 |
|
|
104.9 |
|
|
83.2 |
|
|
101.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
568.5 |
|
|
566.7 |
|
|
589.1 |
|
|
591.4 |
|
|
2,315.7 |
|
2011 |
|
|
583.7 |
|
|
593.5 |
|
|
1,232.3 |
|
|
2,390.0 |
|
|
4,799.5 |
|
2012 |
|
|
2,290.9 |
|
|
2,167.0 |
|
|
2,131.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mill System Operating Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
94.2% |
|
|
95.1% |
|
|
98.2% |
|
|
97.1% |
|
|
96.2% |
|
2011 |
|
|
95.4% |
|
|
98.3% |
|
|
96.7% |
|
|
99.1% |
|
|
97.9% |
|
2012 |
|
|
96.4% |
|
|
90.6% |
|
|
92.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiber Reclaimed and Brokered
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
222.4 |
|
|
233.7 |
|
|
229.8 |
|
|
220.7 |
|
|
906.6 |
|
2011 |
|
|
211.6 |
|
|
213.7 |
|
|
773.9 |
|
|
1,759.6 |
|
|
2,958.8 |
|
2012 |
|
|
2,064.5 |
|
|
1,996.9 |
|
|
2,039.7 |
|
|
|
|
|
|
(1)
|
|
Includes Kraft Paper Production |
(2)
|
|
Recycled paperboard tons produced include coated and specialty paperboard, including gypsum paperboard liner tons produced by Seven Hills Paperboard LLC, our unconsolidated joint venture with Lafarge North America, Inc. |
(3)
|
|
Containerboard, SBS/SBL and Pulp tons produced include the Smurfit-Stone tons beginning May 28, 2011. |
(4)
|
|
Fiber Reclaimed and Brokered tons shipped include the Smurfit-Stone tons beginning May 28, 2011. |
|
|
|
|
|
|
Rock-Tenn Company Quarterly Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Statistics (Continued)
|
(Excluding Display Shipments) |
|
|
|
|
1
st
Quarter
|
|
2
nd
Quarter
|
|
3
rd
Quarter
|
|
4
th
Quarter
|
|
Fiscal Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corrugated Containers Shipments - BSF
(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
2.7 |
|
2.6 |
|
2.9 |
|
2.8 |
|
11.0 |
|
2011 |
|
|
2.6 |
|
2.9 |
|
9.1 |
|
19.3 |
|
33.9 |
|
2012 |
|
|
19.0 |
|
19.1 |
|
19.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corrugated Containers Per Shipping Day - MMSF
(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
43.7 |
|
42.4 |
|
45.0 |
|
43.4 |
|
43.6 |
|
2011 |
|
|
43.1 |
|
45.2 |
|
144.7 |
|
301.4 |
|
134.6 |
|
2012 |
|
|
317.2 |
|
298.3 |
|
309.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Packaging Converting Shipments - BSF
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
4.9 |
|
4.9 |
|
5.1 |
|
5.2 |
|
20.1 |
|
2011 |
|
|
5.0 |
|
5.2 |
|
5.2 |
|
5.3 |
|
20.7 |
|
2012 |
|
|
5.0 |
|
5.2 |
|
5.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Packaging Converting Per Shipping Day - MMSF
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
78.3 |
|
78.7 |
|
80.4 |
|
82.0 |
|
79.9 |
|
2011 |
|
|
82.2 |
|
83.0 |
|
82.1 |
|
82.5 |
|
82.4 |
|
2012 |
|
|
83.5 |
|
81.0 |
|
80.6 |
|
|
|
|
(1)
|
|
MMSF - millions of square feet and BSF - billions of square feet
|
(2)
|
|
Corrugated Container Shipments include Smurfit-Stone shipments beginning May 28, 2011. |
|
|
|
|
|
|
Rock-Tenn Company Quarterly Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Sales and Segment Income
|
(In Millions, except Return On Sales data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
st
Quarter
|
|
|
|
2
nd
Quarter
|
|
|
|
3
rd
Quarter
|
|
|
|
4
th
Quarter
|
|
|
|
Fiscal Year
|
Corrugated Packaging Segment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 180.1 |
|
|
|
$ 191.0 |
|
|
|
$ 210.5 |
|
|
|
$ 219.0 |
|
|
|
$ 800.6 |
|
2011 |
|
|
198.3 |
|
|
|
209.4 |
|
|
|
734.5 |
|
|
|
1,626.5 |
|
|
|
2,768.7 |
|
2012 |
|
|
1,522.8 |
|
|
|
1,505.9 |
|
|
|
1,545.2 |
|
|
|
|
|
|
|
|
Corrugated Packaging Intersegment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 7.3 |
|
|
|
$ 8.6 |
|
|
|
$ 9.6 |
|
|
|
$ 11.8 |
|
|
|
$ 37.3 |
|
2011 |
|
|
9.4 |
|
|
|
11.1 |
|
|
|
21.3 |
|
|
|
39.9 |
|
|
|
81.7 |
|
2012 |
|
|
32.3 |
|
|
|
30.8 |
|
|
|
28.7 |
|
|
|
|
|
|
|
|
Corrugated Packaging Segment Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 35.8 |
|
|
|
$ 21.9 |
|
|
|
$ 36.7 |
|
|
|
$ 49.1 |
|
|
|
$ 143.5 |
|
2011 |
|
|
37.4 |
|
|
|
30.1 |
|
|
|
80.0 |
|
(1)
|
|
153.6 |
|
(2)
|
|
301.1 |
|
2012 |
|
|
109.7 |
|
(3)
|
|
75.4 |
|
(4)
|
|
73.6 |
|
(5)
|
|
|
|
|
Return On Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
19.9% |
|
|
|
11.5% |
|
|
|
17.4% |
|
|
|
22.4% |
|
|
|
17.9% |
|
2011 |
|
|
18.9% |
|
|
|
14.4% |
|
|
|
10.9% |
|
(1)
|
|
9.4% |
|
(2)
|
|
10.9% |
|
2012 |
|
|
7.2% |
|
(3)
|
|
5.0% |
|
(4)
|
|
4.8% |
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Packaging Segment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 497.8 |
|
|
|
$ 516.9 |
|
|
|
$ 543.5 |
|
|
|
$ 574.7 |
|
|
|
$ 2,132.9 |
|
2011 |
|
|
544.5 |
|
|
|
567.8 |
|
|
|
579.6 |
|
|
|
667.9 |
|
|
|
2,359.8 |
|
2012 |
|
|
620.4 |
|
|
|
647.6 |
|
|
|
628.9 |
|
|
|
|
|
|
|
|
Consumer Packaging Intersegment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 2.8 |
|
|
|
$ 2.6 |
|
|
|
$ 3.9 |
|
|
|
$ 3.7 |
|
|
|
$ 13.0 |
|
2011 |
|
|
3.8 |
|
|
|
3.9 |
|
|
|
6.8 |
|
|
|
9.0 |
|
|
|
23.5 |
|
2012 |
|
|
7.6 |
|
|
|
6.2 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
Consumer Packaging Segment Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 55.1 |
|
(6)
|
|
$ 55.7 |
|
(7)
|
|
$ 69.0 |
|
|
|
$ 81.9 |
|
|
|
$ 261.7 |
|
2011 |
|
|
71.0 |
|
|
|
61.0 |
|
|
|
61.1 |
|
|
|
82.1 |
|
|
|
275.2 |
|
2012 |
|
|
80.3 |
|
|
|
84.4 |
|
|
|
83.7 |
|
|
|
|
|
|
|
|
Return on Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
11.1% |
|
(6)
|
|
10.8% |
|
(7)
|
|
12.7% |
|
|
|
14.3% |
|
|
|
12.3% |
|
2011 |
|
|
13.0% |
|
|
|
10.7% |
|
|
|
10.5% |
|
|
|
12.3% |
|
|
|
11.7% |
|
2012 |
|
|
12.9% |
|
|
|
13.0% |
|
|
|
13.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recycling and Waste Solutions Segment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 28.6 |
|
|
|
$ 44.2 |
|
|
|
$ 40.7 |
|
|
|
$ 37.1 |
|
|
|
$ 150.6 |
|
2011 |
|
|
41.9 |
|
|
|
40.8 |
|
|
|
147.4 |
|
|
|
355.8 |
|
|
|
585.9 |
|
2012 |
|
|
329.4 |
|
|
|
296.1 |
|
|
|
338.9 |
|
|
|
|
|
|
|
|
Recycling and Waste Solutions Intersegment Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 5.6 |
|
|
|
$ 9.0 |
|
|
|
$ 9.3 |
|
|
|
$ 8.5 |
|
|
|
$ 32.4 |
|
2011 |
|
|
10.4 |
|
|
|
10.1 |
|
|
|
51.3 |
|
|
|
137.8 |
|
|
|
209.6 |
|
2012 |
|
|
165.0 |
|
|
|
129.7 |
|
|
|
175.0 |
|
|
|
|
|
|
|
|
Recycling and Waste Solutions Segment Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 1.2 |
|
|
|
$ 4.1 |
|
|
|
$ 2.2 |
|
|
|
$ 1.5 |
|
|
|
$ 9.0 |
|
2011 |
|
|
2.3 |
|
|
|
2.6 |
|
|
|
4.6 |
|
|
|
5.3 |
|
|
|
14.8 |
|
2012 |
|
|
3.5 |
|
|
|
4.2 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
Return on Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
4.2% |
|
|
|
9.3% |
|
|
|
5.4% |
|
|
|
4.0% |
|
|
|
6.0% |
|
2011 |
|
|
5.5% |
|
|
|
6.4% |
|
|
|
3.1% |
|
|
|
1.5% |
|
|
|
2.5% |
|
2012 |
|
|
1.1% |
|
|
|
1.4% |
|
|
|
0.6% |
|
|
|
|
|
|
|
|
(1) Excludes $55.4 million of inventory step-up expense.
|
(2) Excludes $4.0 million of inventory step-up expense.
|
(3) Excludes $0.4 million of inventory step-up expense.
|
(4) Excludes $6.7 million of operating losses at the recently closed Matane, Quebec containerboard mill.
|
(5) Excludes $0.2 million of inventory step-up expense.
|
(6) Excludes $20.7 million of alternative fuel mixture credit, net of expenses.
|
(7) Excludes $8.1 million of alternative fuel mixture credit.
|
|
|
Rock-Tenn Company Quarterly Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial Statistics
|
(In Millions, except EPS Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
st
Quarter
|
|
2
nd
Quarter
|
|
3
rd
Quarter
|
|
4
th
Quarter
|
|
Fiscal Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Rock-Tenn Company Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 56.3 |
|
$ 32.8 |
|
$ 45.1 |
|
$ 91.4 |
|
$ 225.6 |
|
2011 |
|
|
50.3 |
|
37.0 |
|
(30.1) |
|
83.9 |
|
141.1 |
|
2012 |
|
|
76.7 |
|
31.9 |
|
58.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 1.43 |
|
$ 0.83 |
|
$ 1.14 |
|
$ 2.31 |
|
$ 5.70 |
|
2011 |
|
|
1.27 |
|
0.92 |
|
(0.60) |
|
1.17 |
|
2.77 |
|
2012 |
|
|
1.06 |
|
0.44 |
|
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 37.5 |
|
$ 36.8 |
|
$ 36.4 |
|
$ 36.7 |
|
$ 147.4 |
|
2011 |
|
|
36.7 |
|
37.2 |
|
73.5 |
|
130.9 |
|
278.3 |
|
2012 |
|
|
132.7 |
|
132.6 |
|
131.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
$ 12.3 |
|
$ 18.3 |
|
$ 30.3 |
|
$ 45.3 |
|
$ 106.2 |
|
2011 |
|
|
28.5 |
|
30.3 |
|
48.7 |
|
91.9 |
|
199.4 |
|
2012 |
|
|
81.6 |
|
120.6 |
|
146.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures and Reconciliations
We have included financial measures that are not prepared in accordance with GAAP. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, and discuss the reasons that we believe this information is useful to management and may be useful to investors. These measures may differ from similarly captioned measures of other companies in our industry. The following non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such.
Net Debt
We have defined the non-GAAP measure “net debt” to include the aggregate debt obligations reflected in our consolidated balance sheet, less the hedge adjustments resulting from fair value interest rate derivatives or swaps and the balance of our cash and cash equivalents.
Our management uses net debt, along with other factors, to evaluate our financial condition. We believe that net debt is an appropriate supplemental measure of financial condition because it provides a more complete understanding of our financial condition before the impact of our decisions regarding the appropriate use of cash and liquid investments. Set forth below is a reconciliation of net debt to the most directly comparable GAAP measures, Current portion of debt and Long-term debt due after one year for the current quarter and the prior quarter.
(In Millions) |
|
|
June 30, |
|
March 31, |
|
|
|
2012
|
|
2012
|
|
|
|
|
|
|
Current Portion of Debt |
|
|
$ |
257.7 |
|
|
$ |
260.0 |
|
Long-Term Debt Due After One Year |
|
|
|
3,102.6
|
|
|
|
3,148.4
|
|
Total Debt |
|
|
|
3,360.3 |
|
|
|
3,408.4 |
|
Less: Hedge Adjustments Resulting From Fair |
|
|
|
|
|
Value Interest Rate Derivatives or Swaps |
|
|
|
(0.2
|
)
|
|
|
(0.3
|
)
|
|
|
|
|
3,360.1 |
|
|
|
3,408.1 |
|
Less: Cash and Cash Equivalents |
|
|
|
(19.5
|
)
|
|
|
(34.9
|
)
|
Net Debt |
|
|
$
|
3,340.6
|
|
|
$
|
3,373.2
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA Margins
Our management uses “Segment EBITDA Margins”, along with other factors, to evaluate our segment performance against our peers. Management believes that investors also use this measure to evaluate our performance relative to our peers.
Set forth below is a reconciliation of Segment EBITDA margins to the most directly comparable GAAP measures, Segment Income and Segment Sales for the quarter ending
June 30, 2012:
(In Millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recycling |
|
|
|
|
|
|
Corrugated |
|
Consumer |
|
and Waste |
|
Corporate / |
|
|
|
|
Packaging
|
|
Packaging
|
|
Solutions
|
|
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Segment Sales |
|
$ |
1,545.2 |
|
|
$ |
628.9 |
|
|
$ |
338.9 |
|
|
$ |
(209.8 |
) |
|
$ |
2,303.2 |
|
|
|
|
|
|
|
|
|
|
|
Segment Income
(1)
|
|
$ |
73.6 |
|
|
$ |
83.7 |
|
|
$ |
2.2 |
|
|
|
|
$ |
159.5 |
Depreciation and Amortization Total Debt |
|
|
100.4
|
|
|
|
24.0
|
|
|
|
3.5
|
|
|
|
3.5 |
|
|
|
131.4 |
EBITDA |
|
$ |
174.0 |
|
|
$ |
107.7 |
|
|
$ |
5.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA Margins |
|
|
11.3 |
% |
|
|
17.1 |
% |
|
|
1.7 |
% |
|
|
|
|
(1) |
|
Corrugated Packaging segment excludes $0.2 million of inventory step-up expense. |
|
|
|
Credit Agreement EBITDA and Total Funded Debt
“Credit Agreement EBITDA” is calculated in accordance with the definition contained in our Credit Facility. Credit Agreement EBITDA is generally defined as Consolidated Net Income plus: consolidated interest expense, income taxes of the consolidated companies determined in accordance with GAAP, depreciation and amortization expense of the consolidated companies determined in accordance with GAAP, loss on extinguishment of debt and financing fees, certain non-cash and cash charges incurred, including certain restructuring and other costs, acquisition and integration costs, charges and expenses associated with the write-up of inventory acquired and other items.
“Total Funded Debt” is calculated in accordance with the definition contained in our Credit Facility. Total Funded Debt is generally defined as aggregate debt obligations reflected in our balance sheet, less the hedge adjustments resulting from terminated and existing fair value interest rate derivatives or swaps, less certain cash, plus additional outstanding letters of credit not already reflected in debt and certain guarantees.
Our management uses Credit Agreement EBITDA and Total Funded Debt to evaluate compliance with our debt covenants and borrowing capacity available under our Credit Facility. Management believes that investors also use these measures to evaluate our compliance with our debt covenants and available borrowing capacity. Borrowing capacity is dependent upon, in addition to other measures, the “Credit Agreement Debt/EBITDA ratio” or the “Leverage Ratio,” which is defined as Total Funded Debt divided by Credit Agreement EBITDA. As of the
June 30, 2012 calculation, our Leverage Ratio was 2.84 times. Our maximum permitted Leverage Ratio under the Credit Facility at
June 30, 2012 was 3.75 times. Effective for the
September 30, 2012 quarter, the maximum permitted Leverage Ratio under the Credit Facility is 3.5 times.
Set forth below is a reconciliation of Credit Agreement EBITDA for the twelve months ended
June 30, 2012, to the most directly comparable GAAP measure, Consolidated Net Income:
(In Millions) |
|
|
Twelve Months |
|
|
|
Ended |
|
|
|
June 30, 2012
|
|
|
|
|
Consolidated Net Income |
|
|
$ |
253.6 |
Interest Expense, net |
|
|
|
113.2 |
Income Taxes |
|
|
|
141.8 |
Depreciation and Amortization |
|
|
|
527.6 |
Additional Permitted Charges |
|
|
|
168.5
|
Credit Agreement EBITDA |
|
|
$
|
1,204.7
|
Set forth below is a reconciliation of Total Funded Debt to the most directly comparable GAAP measures, Current portion of debt and Long-term debt due after one year:
|
|
|
|
|
|
|
|
(In Millions, except ratio) |
|
|
June 30, |
|
|
|
2012
|
|
|
|
|
Current Portion of Debt |
|
|
$ |
257.7 |
|
Long-Term Debt Due After One Year |
|
|
|
3,102.6
|
|
Total Debt |
|
|
|
3,360.3 |
|
Less: Hedge Adjustments Resulting From Terminated |
|
|
|
Fair Value Interest Rate Derivatives or Swaps |
|
|
|
(0.2
|
)
|
Total Debt Less Hedge Adjustments |
|
|
|
3,360.1 |
|
Plus: Letters of Credit, Guarantees and Other Adjustments |
|
|
|
65.0
|
|
Total Funded Debt |
|
|
$
|
3,425.1
|
|
|
|
|
|
Credit Agreement EBITDA for the Twelve Months Ended June 30, 2012
|
|
|
$
|
1,204.7
|
|
|
|
|
|
Leverage Ratio |
|
|
|
2.84
|
|
Adjusted Net Income and Adjusted Earnings per Diluted Share
We also use the non-GAAP measures “adjusted net income” and “adjusted earnings per diluted share”. Management believes these non-GAAP financial measures provide our board of directors, investors, potential investors, securities analysts and others with useful information to evaluate the performance of the Company because it excludes restructuring and other costs, net, and other specific items that management believes are not indicative of the ongoing operating results of the business. The Company and our board of directors use this information to evaluate the Company’s performance relative to other periods. We believe that the most directly comparable GAAP measures to adjusted net income and adjusted earnings per diluted share are Net income attributable to
Rock-Tenn Company shareholders and Earnings per Diluted Share, respectively. Set forth at the beginning of this press release is a reconciliation of adjusted earnings per diluted share to Earnings per diluted share. Set forth below is a reconciliation of adjusted net income to Net income attributable to
Rock-Tenn Company shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Three Months
|
|
|
Nine Months
|
|
|
Nine Months
|
|
|
|
Ended
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
(In Millions)
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Rock-Tenn Company shareholders
|
|
|
$
|
58.2
|
|
$
|
(30.1
|
)
|
|
|
$
|
166.8
|
|
|
$
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other costs and operating losses and transition costs due to plant closures
|
|
|
|
10.0
|
|
|
36.4
|
|
|
|
|
43.7
|
|
|
|
41.3
|
Loss on extinguishment of debt |
|
|
|
— |
|
|
25.1 |
|
|
|
|
12.3 |
|
|
|
25.1 |
Acquisition inventory step-up |
|
|
|
0.2 |
|
|
35.2 |
|
|
|
|
0.4 |
|
|
|
35.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
|
$
|
68.4
|
|
$
|
66.6
|
|
|
|
$
|
223.2
|
|
|
$
|
158.8
|
Source: RockTenn
RockTenn
John Stakel, SVP-Treasurer, 678-291-7900