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					                   Buckeye Technologies Inc.




                     Investor Presentation

                           February 2011


PROFITABLE   SUSTAINABLE            GROWTH
                                                  Safe Harbor title style
                                         Click to edit Master Statement

These slides and the accompanying presentation contain forward-looking statements.
Forward-looking statements include information concerning possible or assumed future results
of operations, capital expenditures, the outcome of pending legal proceedings and claims, goals
and objectives for future operations, including descriptions of the Company’s business
strategies and purchase commitments from customers, among other things. These statements
are typically identified by words such as ‘‘believe,’’ ‘‘anticipate,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘intend,’’
‘‘estimate’’ and similar expressions. Management bases these statements on particular
assumptions made in light of industry experience, as well as Management’s perception of
historical trends, current conditions, expected future developments and other factors that
Management believes are appropriate under the circumstances. These statements are not
guarantees of performance or results and involve risks, uncertainties and assumptions.
Although Management believes that these forward-looking statements are based on reasonable
assumptions, many factors could affect the Company’s actual financial results or results of
operations and could cause actual results to differ materially from those expressed in the
forward-looking statements. These factors include, among other things, cyclical changes in the
demand for some of the Company’s products; changes in pricing policies by the Company or its
competitors; changes in the cost of labor, energy and other manufacturing costs; debt levels;
the size and timing of significant orders; changes in operating expenses or the need for
additional capital expenditures; changes in corporate strategy; and general economic
conditions. In light of these risks and uncertainties, there can be no assurance that the results
and events contemplated by the forward-looking statements contained in these slides and the
accompanying presentation will in fact transpire.


BUCKEYE TECHNOLOGIES INC.                                                                              2
                                          Table of Contents
                            Click to edit Master title style

1. Company Overview

2. Position of Strength

3. Company Goals

4. Growth & Shareholder Value

5. Summary

6. Appendix


BUCKEYE TECHNOLOGIES INC.                                      3
                   Buckeye Technologies Inc.




                     1. Company Overview




PROFITABLE   SUSTAINABLE          GROWTH
                            Click to edit Master Producer
                 Specialty Cellulose & Nonwovenstitle style

• Buckeye is the only manufacturer in the world that produces
  high-end, specialty cellulose products out of both cotton and
  wood

• We’re also one of the largest airlaid nonwovens producers in
  the world

• We’ve been growing sales and earnings since 2002

• We’ve made significant improvements to our balance sheet

• We’re positioned to pursue a balanced approach of investing
  in high return projects, returning value to shareholders, and
  continued debt reduction


BUCKEYE TECHNOLOGIES INC.                                         5
                                                Unique style
                               Click to edit Master titleAssets
                            Wood - Perry, FL
                            • 1 of 2 Specialty Wood Pulp mills of its kind in the world
                            • Infrastructure ideal for specialty chemical and
                              renewable energy production


                            Cotton - Memphis, TN
                            • World’s largest Cotton Cellulose mill
                            • Highly specialized fibers suitable for applications like
                              specialty cotton papers and LCD displays


                            Nonwovens - Mount Holly, NC
                            • World’s largest Airlaid Nonwovens machine
                            • Leader in airlaid material for wet wipes, a growing
                              market in North America
                            • Our German facility (not pictured) is also the leader in
                              airlaid material for table top products in Europe
BUCKEYE TECHNOLOGIES INC.                                                                 6
                                     High End Specialty style
                              Click to edit Master titleFocus

           Total Pulp Market Worldwide (Captive & Market 2010)


          % Alpha Cellulose
                                 Our focus:
                  99%
                                 • Higher purity (alpha) cellulose
             92 - 98%
                                 • Technically demanding
                  88%            • More price stability

              84 -88%
                                               Cotton Linter Pulp          1.1
                                               Specialty Wood Pulp        3.6

                                               Fluff Pulp                  5.1
    Increasing
Technical Expertise                            Paper Pulp               290.0

                                               Total (ADMT 000,000)     299.8




                                                              Based on Buckeye estimates



  BUCKEYE TECHNOLOGIES INC.                                                                7
                                                                     Diverse Product Mix
                                                          Click to edit Master title style

                           Specialty Fibers                                               Nonwoven Materials

                          Viscose Staple    Concrete
               Airlaid 5%    Fiber 5%    Reinforcement                                     Femcare 20%
      Personal Care 2%                         1%                                                                 Other 4%
                                                     Fluff 25%
    Casings 7%
                  #1                                                     Towel & Tissue
 Nitrates 3%                                                                  8%


                                                            Ether 6%
Acetate 15%      #2
                                                                       Table Top 21%
                                                   #1                                                                #1
                           #1                                                                                                Airlaid Wipes
                                  #1                      Cotton Paper 8%                                                         47%

           Automotive                          Other 6%
           Filtration 9%        Tire Cord 9%



         • Wood Capacity = 465,000 MT                                          • Airlaid Capacity = 99,000 MT
         • Cotton Capacity = 140,000 MT
                                                                                                   %’s Based on fiscal 2010 net sales

     BUCKEYE TECHNOLOGIES INC.                                                                                                      8
                                                    Diverse End Markets
                                         Click to edit Master title style
                                                                                           Nonwoven

• Buckeye is a leading producer of value-                                    Specialty
                                                                                          Materials 33%

                                                                            Fibers 67%
  added, cellulose-based specialty products
%’s based on fiscal 2010 Net Sales

  Nonwoven                                     Specialty Fibers
  Materials               Fluff Pulp         Chemical Cellulose                Customized Fibers
       33%                    19%                      33%                                15%




                                                                Ethers
      Wipes               Baby Diapers    Tire Cord                                             Filters
                                                             (Thickeners)
                                                                             UltraFiber
                                                                               500®




    Table Top               Femcare      LCD Screens         Food Casings                  Currency Papers


BUCKEYE TECHNOLOGIES INC.                                                                                    9
                                                        Geographic Diversity
                                             Click to edit Master title style

  • 70% of sales outside US                         • 78% of sales produced in US

                                                                    Germany

                                 North Carolina       United Kingdom
                         Tennessee
                                                               Switzerland
                                                           France
                                 Florida                                  Italy
       Canada / BC
                                                    Europe
North America                                         33%                                            Asia
                                                                                  Beijing
     39%                                                                                             16%

                                                          Other
    Nonwovens Sites
                                                           8%
    Corporate HQ
                                  Brazil
    Cotton Cellulose
    Converting
    Wood Cellulose
                             South America
    Intl. Sales Office
                                  4%
                                                                              Region %’s based on fiscal 2010 Sales

 BUCKEYE TECHNOLOGIES INC.                                                                                     10
                   Buckeye Technologies Inc.




                     2. Position of Strength




PROFITABLE   SUSTAINABLE           GROWTH
                                                    Balance edit Master title Flow
                                              StrongClick to Sheet & Free Cash style


  Debt:                    • $537 mm reduction since 2002 (77%)                                                                      Cash Flow:
                           • Leverage = 1.2x (Debt/Adj. EBITDA)
                           • $300 mm Revolving Credit Facility due 2015                                                              • FCF from
                                                                                                                                       operations
             $800                                                                                      12.0
                                                                                                                                       main source of
                                                                         Fiscal Years ending June 30
                            $2       $26                                                                                               debt reduction
             $700           $35
                    $701                      $48   $51    $61    $70        $58       $70     $70     10.0
             $600
                           $664      $68
                                             $115   $128
                                                                             $38
                                                                                       $63                                           • Additional




                                                                                                              Debt/Adjusted EBITDA
                                     $607
             $500   8.3                      $539
                                                           $195
                                                                  $237
                                                                                               $141
                                                                                                       8.0                             $141 mm from
                                                    $522
                                                                                                                                       tax credits
$ Millions




                                                                             $278
             $400           7.1                            $446                        $330            6.0
                                     6.7
                                                                  $394
             $300                                   5.2                      $327
                                                                                               $327                                  • Average of
                                                                                                       4.0
             $200
                                              4.4
                                                                                       $238
                                                                                                                                       approximately
                                                           3.2
                                                                  2.5
                                                                             2.9               $164    2.0                             $40 mm per
             $100
                                                                                       2.0                                             year in FCF
                                                                                               1.2
              $-                                                                                       0.0                             from
                                                                                                                                       operations
                              Debt          FCF     AFMC/CBC      Other             Leverage

  BUCKEYE TECHNOLOGIES INC.                                                                                                                            12
                                                                        Sales Master title style
                                                                 Click to edit& Earnings Growth

 Sales:                     • Trailing twelve month sales up 27% versus                                                              Earnings:
                              2002
                            • Improving selling prices & mix key drivers
                                                                                                                                     • Consolidated
                            • Strong demand and resilient markets                                                                      high-cost
             $900                                                                                         30.0%
                                                                                                                                       facilities
                    Fiscal Years ending June 30                         $826                      $807
             $800
                                             $713    $728
                                                               $769              $755     $756                                       • Improving
                                                                                                          25.0%
             $700   $635     $641    $657                                                                                              selling prices &
             $600                                                                                         20.0%                        mix also key




                                                                                                                  Adj EBITDA/Sales
                                                                                                                                       drivers of
$ Millions




             $500                                                       18.8%                     18.2%
                                                              17.9%
             $400
                                             17.2%
                                                                                          16.0%
                                                                                                          15.0%                        earnings
                             14.6%                                               14.9%
                    13.3%            13.7%           13.9%                                                                             growth
             $300                                                                                         10.0%

             $200                                                                                                                    • Goal = 20%
                                                                                                          5.0%
             $100
                                                                        $155                      $147
                                                                                                                                       consolidated
                                             $123              $138              $112     $121
              $-
                     $84      $93     $90            $101
                                                                                                          0.0%                         margins
                    2002     2003    2004    2005    2006     2007      2008     2009     2010    TTM

                                        Adj EBITDA          Net Sales          EBITDA %

 BUCKEYE TECHNOLOGIES INC.                                                                                                                            13
                                                                                  Improving Quarterly Results
                                                                               Click to edit Master title style

Sales:                                  • Record sales quarter Q1-FY09                                                            Adj. EPS:
                                        • Step change improvements over last 7 quarters
                                        • 17% price increase on specialty wood starting                                           • Significant
                                          Q3-11                                                                                     reduction in
                         $225   $221                                                                            $0.70
                                                                                                                                    interest
                                                 Fiscal Years ending June 30
                                                                                         $205
                                                                                                        $210                        expense
                                                                                                $202            $0.60
                         $200
                                         $185                              $183
                                                                                  $191
                                                                                                                $0.50
                                                                                                                                  • Record Adj.
                                                          $177    $177
                                                                                                                                    EPS of $0.50
Net Sales ($ Millions)




                                                 $172                                                   $0.50
                         $175                                                                                   $0.40
                                                                                                                                    per share Q2-




                                                                                                                        Adj EPS
                         $150                                                                   $0.34           $0.30               FY11
                                                                                  $0.28 $0.26
                                                                                                                $0.20
                         $125
                                $0.23                                     $0.22                                                   • Expect
                                                         $0.18
                                                                  $0.12
                                                                                                                $0.10               earnings of
                                                 $0.11
                         $100
                                         $0.07
                                                                                                                $0.00               $0.63-$0.67
                                                                                                                                    per share in
                                                                                                                                    Q3-11
                                                                 Sales         Adj EPS

BUCKEYE TECHNOLOGIES INC.                                                                                                                           14
                   Buckeye Technologies Inc.




                       3. Company Goals




PROFITABLE   SUSTAINABLE          GROWTH
                                            Company style
                            Click to edit Master title Goals

• Grow cash flow and earnings

• Earn gross margins greater than 20%

• Earn returns greater than the cost of capital (11%)

• Maintain debt at less than 2.5x EBITDA




BUCKEYE TECHNOLOGIES INC.                                  16
                   Buckeye Technologies Inc.




                    4. Growth & Shareholder
                             Value



PROFITABLE   SUSTAINABLE          GROWTH
                            Click to edit Allocating Capital
                     Balanced Approach toMaster title style


• We’re pursuing a balanced approach to allocating capital
  between investments in high-return opportunities and
  returning cash to shareholders

• There are also many opportunities that don’t require capital:
    –   Increase Nonwovens utilization to > 75%
    –   Increase Cotton utilization to > 50%
    –   Improve Specialty mix
    –   Take advantage of the Cellulosic Bio-Fuel credit
    –   Take advantage of other Investment Tax Credits



BUCKEYE TECHNOLOGIES INC.                                         18
                              Florida Energy Independence
                            Click to edit Master title style

• Successful start-up of 25
  megawatt steam condensing
  turbine in January
• Expect incremental $3 mm
  in energy savings through
  June
• Additional recovery boiler
  modifications still necessary        Turbine Generator Building & Cooling Tower


• Estimated $15 mm per year        $   49.0 mm project
  savings expected to start
                                   $   - 7.4 mm grant
  calendar 2012
                                   $   - 11.1 mm invest tax credits
• Potential “green” energy
                                   $   30.5 mm net investment
  sales back to grid

BUCKEYE TECHNOLOGIES INC.                                                           19
                       Investing in High Return Opportunities
                              Click to edit Master title style

• Pilot bio-refinery:
   – Partnership with University of Florida
   – Will explore renewable chemical/energy opportunities
   – Expected to be operational by mid-2011

• Additional investment opportunities at our facilities:
   – Expand capabilities at nonwoven sites to capture growth in
     wipes market
   – Improve ability to produce cotton acetate for LCD market
   – Further enhance performance attributes of Foley fluff

• Will also look at opportunities to add complementary assets
  through acquisitions, partnerships, joint ventures

BUCKEYE TECHNOLOGIES INC.                                         20
                                                             to edit Site Energy Vision
                                                       Click Florida Master title style

           Electrical Independence                                                         UF Pilot Plant
•   $49mm investment to increase renewable energy to 95%              •   Partnership with University of Florida (U of F gov’t grant)
•   Save equivalent of 200,000 barrels of oil/year                    •   Cellulosic bio-refinery
•   Reduce 87,500 MT of CO2e                                          •   Input = Biomass
•   Incented by $7.4mm grant + $11.1mm Tax Credits                    •   Output = Ethanol/Organic Acids




                            Fossil Fuel Independence
                 •   Increase renewable energy to 100%
                 •   Save equivalent of 250,000 barrels of oil/year
                 •   Reduce 100,000 MT of CO2e
                 •   Permit “green” power sales to the grid




                                                         Bio-Refinery
                                   • Bio-fuels
                                   • Bio-polymers
                                   • Dependent on regulation, technology, and partnership(s)



    BUCKEYE TECHNOLOGIES INC.                                                                                                      21
                                    Click to editBio Refinery Model
                                                  Master title style
• We can tighten up our processes and turn today’s waste
  streams into tomorrow’s revenue streams
                                                                                   FUTURE
                                                                       Electricity to grid
                              Gas                       Gas
                            Cleanup                   Turbine
           Gasifier
                                                                   Waste Heat



                                             Waste Heat



                                                                Pulp
          Biomass          Biorefinery      Waste/Process       Mill
                                            Streams




                Biofuels           Biopolymers                  Pulp
                 FUTURE                  FUTURE                 TODAY

BUCKEYE TECHNOLOGIES INC.                                                                    22
                            Returning Cash to Shareholders
                            Click to edit Master title style

• Significant debt reduction and interest expense savings
  enabled us to institute first-ever dividend August 2010

• Raised dividend 25% to $0.05 per share January 2011

• Outstanding authorization to buy-back 5.6 million shares and
  will do so opportunistically

• Consistency of cash flows will enable us to return cash to
  shareholders and grow the business




BUCKEYE TECHNOLOGIES INC.                                      23
                   Buckeye Technologies Inc.




                           5. Summary




PROFITABLE   SUSTAINABLE          GROWTH
                                                 Summary
                            Click to edit Master title style

• Buckeye is well positioned with:
   – Strong markets that have high barriers to entry
   – A strong balance sheet
   – Strong free cash flows
   – An improving sales and earnings profile

• We are focused on a balanced approach of:
   – Investing in high-return opportunities
   – Returning cash to shareholders

• We are confident that we can do both while maintaining a
  strong balance sheet and profitably growing the business


BUCKEYE TECHNOLOGIES INC.                                    25
                   Buckeye Technologies Inc.




                           5. Appendix




PROFITABLE   SUSTAINABLE           GROWTH
                                                      Plant title style
                                       Click to edit Master Capacities


           SPECIALTY FIBERS                              NONWOVEN MATERIALS

Facility                Capacity   Utilization    Facility                 Capacity    Utilization

Foley, Florida           465,000      100%        Gaston, North Carolina     43,000      70-80%


Memphis, Tennessee       100,000     50-55%       Delta, Canada              26,000      50-60%


Americana, Brazil         40,000     25-30%       Steinfurt, Germany         30,000      90-95%


Lumberton, North           8,500      100%
Carolina

Total Capacity (Tons)    613,500                  Total Capacity (Tons)*     99,000




 * Nonwoven Material totals based on current product mix. Excludes converting facility in King,
   North Carolina which currently produces 900,000 cases of tissue/toweling products.



BUCKEYE TECHNOLOGIES INC.                                                                         27
                                              Specialty style
                               Click to edit Master titleFibers
Annual Trends                                     $700
                                                                                                              $596                        $584
                                                                                                                                                  24.0%

                                                  $600                                              $544                $552     $537
• Trailing 12 month sales up
                                                                           $514       $516
                                                          $467                                                                            16.5%   18.0%
                                                  $500            $461                                      15.2%

  25% versus 2003




                                     $ Millions
                                                  $400                     12.5%                                                 12.0%
                                                                                                11.7%
                                                                                                                        9.7%                      12.0%
                                                          9.0%
• Higher selling prices and mix                   $300
                                                                  6.1%
                                                                                      6.9%
                                                  $200
  improvements                                                                                                                                    6.0%
                                                  $100
                                                                   $28                 $36
• Rationalized capacity and                                                 $64                     $64       $90                 $64      $96
                                                          $42                                                           $54
                                                    $0                                                                                            0.0%

  reduced costs                                          2003     2004     2005       2006      2007          2008      2009     2010     TTM
                                                                           Op Income                Sales           Op Income %



Quarterly Trends
                                                  $180   $165                                                                                     35.0%
                                                                                                                                          $155
                                                  $160                                                                   $149
                                                                 $138                                                             $143            30.0%
                                                                                                                $137
                                                                                                       $130
• Year-over-year improvement
                                                  $140                   $124      $125      $122
                                                                                                                                          22.2%   25.0%
                                                  $120

  in revenue (+$25.7 mm) and
                                  $ Millions




                                                  $100                                                                                            20.0%
                                                                                                                14.8%             15.5%
                                                   $80                                                                   13.0%
  op income (+$18.2 mm)                                  12.2%                                        12.5%                                       15.0%
                                                   $60           8.2%    8.8%      9.1%
                                                                                             7.0%                                                 10.0%
• Q2-FY11 operating income %                       $40
                                                                                                                                                  5.0%
                                                   $20           $11.3   $10.9     $11.4
  up 10% versus Q1-FY09
                                                                                             $8.5                                         $34.4
                                                         $20.1                                        $16.2     $20.3    $19.3    $22.1
                                                    $0                                                                                            0.0%

• Strong demand & price
  environment                                                             Op Income             Sales           Op Income %


BUCKEYE TECHNOLOGIES INC.                                                                                                                            28
                                           NonWoven Materials
                                 Click to edit Master title style
Annual Trends                                    $300
                                                                                                 $259       $264
                                                                                                                              $247    $254
                                                                                                                                             15.0%
                                                                                    $241                             $240
• Trailing 12 month sales up                     $250
                                                         $196
                                                                 $218     $226                                                               12.0%

  30% versus 2003                                $200
                                                                                              8.2%




                                   $ Millions
                                                                                                                                             9.0%
                                                                                   6.6%                                       6.8%
• Seq. unit volume growth
                                                 $150
                                                                          5.7%                              5.8%
                                                                                                                     5.1%             4.9%   6.0%
  mainly a result of growth in                   $100            3.5%
                                                        2.0%
  N.American wet wipes
                                                                                                                                             3.0%
                                                  $50
                                                                  $8      $13                                        $12              $13
                                                          $4                         $16          $21       $15               $17
                                                   $0                                                                                        0.0%
• Rationalized capacity &                               2003     2004     2005     2006       2007          2008     2009     2010    TTM

  increased plant utilization                                            Op Income               Sales         Op Income %




Quarterly Trends
                                                 $80                                                                                         15.0%
                                                        $66                                                                    $68
                                                 $70                                       $63                         $64             $62
                                                                                 $60                 $60      $60
• Volume decline in Q2-FY11                                     $57     $57                                                                  12.0%
                                                 $60

  due to seasonality & supply                    $50                                    8.2%
                                    $ Millions




                                                                                                    7.6%                                     9.0%
                                                                                 7.2%
                                                 $40                                                                           6.8%
                                                                                                                      5.9%
  chain inventory reduction                      $30
                                                        5.5%            5.1%
                                                                                                              5.6%
                                                                                                                                             6.0%


• Q2-FY11 margin compressed                      $20            2.6%
                                                                                                                                             3.0%
                                                                                                                                      1.3%
                                                 $10
  by increasing fluff prices &
                                                        $3.6    $1.5    $2.9                                  $3.3     $3.7
                                                                                 $4.3      $5.1      $4.6                      $4.6   $0.8
                                                  $0                                                                                         0.0%

  reduced shipment volume
• End markets growing                                                      Op Income             Sales        Op Income %


BUCKEYE TECHNOLOGIES INC.                                                                                                                       29
                                         Specialty Master title style
                                     Click to edit Wood Pulp Market

        2009 Global Specialty Wood Output = 3.6 million MT

                              Filtration Paper
                                      56 Textile Filament
                                                262                            Competitors:
                                                     Sausage Casings
                                                           46                  • Rayonier
                                                           Cellulose Acetate
                                                                  580          • Borregaard
         Viscose Staple                                                        • Sateri Group
          Fiber 1,725                                         Tirecord
                                                                  48           • Neucel
                                                            Lyocell
                                                               129             • Sappi Saicor
                                                           Cellophane
                                                                64
                                                                               • Tembec
                                                    Cellulose Ethers
                                                           382
                                             MCC
                             Sponges Nitrate 117
                                14     136
Based on Buckeye estimates



BUCKEYE TECHNOLOGIES INC.                                                                       30
                                                   Fluff Pulp Market
                                     Click to edit Master title style

          2010 Global Fluff Output = 5.1 million MT

                                 Tembec 100   Domtar 160
                      Alto Parana 120            Smurfit 200
                         Rauma 120
                      Stora 250
               Buckeye 270
                                                                    GP Cellulose 1,330

            Rayonier 270


            Bowater 290




                          IP 700
                                                               Weyerhaeuser
                                                                  1,250




BUCKEYE TECHNOLOGIES INC.                                                                31
                                                               Airlaid Markets
                                               Click to edit Master title style

                 2007 Global Airlaid Output = 406K MT
                                     Med. Dressings
                                           20
                        Training Pants
                              20                                 Competitors:
         Adult Incontinence                             Wipes
                  24                                     97      • Glatfelter

                Other                                            • GP Cellulose
                 32
                                                                 • Duni
            Oshibori                                             • Fiberweb
               32
                                                                 • KCC

                     Tabletop
                                                       Femcare
                        37
                                                         142



Source: INDA-EDANA




BUCKEYE TECHNOLOGIES INC.                                                         32
                                    Click to editNew Credit Facility
                                                 Master title style
 Credit Facilities:     $300.0 MM 5-year Senior Secured Revolver; matures Oct 2015


 Commitment Fee:        37.5 bps

 Pricing Grid:          Leverage           LIBOR Margin
                        ≥ 2.5              275 bps
                        2.0 – 2.5          250 bps
                        1.5 – 2.0          225 bps
                        1.0 – 1.5          200 bps
                        ≤ 1.0              175 bps


 Financial Covenants:   Maximum Total Leverage Ratio (Total Debt/EBITDA) of 3.50x with step
                        downs to 3.25x in 2 years and to 3.00x in 4 years
                        Fixed Charge Coverage Ratio ((EBITDA – Cash Taxes – Dividends)
                        /(Interest + Maintenance CapEx)) of 1.25x


 Increase Option:       The Facility may be increased by up to $100.0 MM




BUCKEYE TECHNOLOGIES INC.                                                                     33
                                                                       ClickNon GAAP Reconciliations
                                                                            to edit Master title style
ADJUSTED EBITDA (in thousands)

We calculat e EBITDA as earnings bef ore cumulative eff ect of change in accounting plus interest expense, income taxes and depreciation and amortization. Adjusted
EBITDA f urther adjusts EBITDA by adding back the f ollowing items: asset impairment charges, non-cash charges, restructuring charges and other (gains) losses. You
should not consider adjusted EBITDA to be an alternative measure of our net income, as an indicator of operating performance; or our cash f low, as an indicator of liquidity.
Although we believe adjusted EBITDA enhances your understanding of our f inancial condition, this measure, when viewed individually, is not a better indicator of any trend
as compared to other measures (e.g., net sales, net earnings, net cash f lows, etc.).


                                                    2002        2003        2004        2005 (b)      2006         2007         2008         2009        2010         TTM

Income (loss) before cumulative effect of           (14,504)    (24,894)     (43,910)     20,204        1,980       30,118       47,102      (65,388)    114,575      110,537
  change in accounting
Income tax expense (benefit)                        (8,420)     (17,122)     (26,197)       (490)      (1,296)      13,720       20,203       13,678      11,237      (32,949)
Net interest expense                                46,553       45,026       45,324      43,586       42,381       37,853       32,469       28,247      16,678       12,221
Amortization of debt costs                           2,033        2,500        1,960       1,556        1,487        1,300        1,088        1,047         946          772
Early extinguishment of debt                           -            -          4,940         242          151          832          623         (401)      2,606        6,420
Depreciation, depletion and amortization            47,409       49,029       48,133      48,451       49,178       51,592       52,729       49,927      48,180       49,477
EBITDA                                              73,071       54,539       30,250     113,549       93,881      135,415      154,214       27,110     194,222      146,478


Asset impairments                                    9,984       36,503      45,908       12,326        2,090          -            -       138,008          -            -
Loss on disposal of assets                             -            632         998        1,000          886        1,190          955       1,297        1,096        1,734
Gain on sale of assets held for sale                   -            -           -         (7,203)         -           (355)         -           -            -            -
Restructuring charges (a)                            1,605        1,636       4,364        3,020        3,526        1,249          -           -            -            -
Restatement due to change in accounting                -            -         8,525          -            -            -            -           -            -            -
Non-Cash Charges                                      (450)         -           -            -            598          261           15         256          207          132
Adjusted EBITDA per Credit Agreement                84,210       93,310      90,045      122,692      100,981      137,760      155,184     166,671      195,525      148,344


Alternative Fuel Mixture Credits                       -            -           -         -         -         -         -     (54,232)  (77,677)   (4,762)
Restructuring charges                                  -            -           -         -         -         -         -         -       3,353     3,660
Adjusted EBITDA                                 $   84,210 $     93,310 $    90,045 $ 122,692 $ 100,981 $ 137,760 $ 155,184 $ 112,439 $ 121,201 $ 147,242

Net sales                                       $ 635,218 $ 641,082 $ 656,913 $ 712,782 $ 728,485 $ 769,321 $ 825,517 $ 754,529                          756,426      807,435
EBITDA Margin %                                     13.3%     14.6%     13.7%     17.2%     13.9%     17.9%     18.8%     14.9%                            16.0%        18.2%


(a) The def inition of Adjusted EBITDA limits the add back of restructuring charges to costs incurred f rom October 1, 2002 through June 30, 2004, provided that the
aggregate amount does not exceed $6.0 million. Since we exceeded the $6.0 million threshold during the three months ended June 30, 2004 our add back was limited to
$492 of the $2,073 of restructuring expense recorded during that quarter. (b) Adjusted EBITDA for all years prior to 2006 corresponds with the def inition contained in our old
US revolving credit f acility.

BUCKEYE TECHNOLOGIES INC.                                                                                                                                                    34
                                                                  ClickNon GAAP Reconciliations
                                                                       to edit Master title style
ADJUSTED EPS

We calculate Adjusted Earnings per Share as Earnings per share excluding restructuring, income f rom the Alternative Fuel Mixt ure Credit (AFMC), income
f rom the Cellulosic Biof uel Credit (CBC), early extinguishment of debt, goodwill impairment, and Investment Tax Credits (ITC) on prior period expenditures.
We believe that the presentation of this non-GAAP measure provides inf ormation that is usef ul to investors as it allows f or a mo re meaningf ul comparison of
this measure to prior periods, but this inf ormation should not be considered a substitute f or any measures derived in accorda nce with GAAP. We manage
our business units by f inancial measures which exclude these items. Earnings per Share targets f or our all -employee bonus and at-risk compensation also
exclude the impact of such items.



                                                   Q1-FY09    Q2-FY09     Q3-FY09    Q4-FY09     Q1-FY10      Q2-FY10      Q3-FY10      Q4-FY10    Q1-FY11      Q2-FY11

Earnings per Share in accordance with GAAP         $    0.23 $    (3.23) $    0.11 $     1.20 $      1.00 $       1.18 $       0.49 $       0.24 $     1.59 $       0.42

Special Items, after-tax, per share:
 Restructuring                                     $     -    $     -     $    -    $     -      $    0.01    $     -      $    0.04    $    -     $    0.01    $   0.01
 AFMC / CBC                                        $     -    $     -     $    -    $   (1.02)   $   (0.89)   $   (0.96)   $   (0.11)   $    -     $   (1.26)   $   0.01
 Early Extinguishment of Debt                      $     -    $     -     $    -    $     -      $     -      $     -      $    0.03    $   0.02   $     -      $   0.06
 Goodwill Impairment                               $     -    $    3.30   $    -    $     -      $     -      $     -      $     -      $    -     $     -      $    -
 ITC on Prior Period Expenditures                  $     -    $     -     $    -    $     -      $     -      $     -      $   (0.17)   $    -     $     -      $    -

Total Special Items                                $     -    $    3.30 $      -    $   (1.02) $     (0.88) $     (0.96) $     (0.21) $     0.02 $     (1.25) $     0.08

Adjusted Earnings per Share                        $    0.23 $     0.07 $     0.11 $     0.18 $      0.12 $       0.22 $       0.28 $       0.26 $     0.34 $       0.50




 BUCKEYE TECHNOLOGIES INC.                                                                                                                                            35
                                 Click to edit Company Contacts
                                               Master title style

                            Buckeye Technologies Inc.     Phone:   901 320 8100
Company Address
                            1001 Tillman Street
                            P.O. Box 80407                Fax:     901 320 8836
                            Memphis, TN 38108-0407




Company Contacts            Daryn Abercrombie             Phone:   901 320 8908
                            Investor Relations
                            Steve Dean                    Phone:   901 320 8352
                            Senior Vice President & CFO




BUCKEYE TECHNOLOGIES INC.                                                         36
www.bkitech.com

				
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