þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 47-0956945 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of office)
(Registrant’s telephone number, including area code)
FORM 10-Q
QUARTERLY REPORT - PAGE 2
(Unaudited)
(Euros in thousands)
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | € | 73,079 | € | 83,547 | ||||
Cash restricted | 5,892 | 7,039 | ||||||
Receivables | 87,020 | 74,315 | ||||||
Inventories | 69,544 | 81,147 | ||||||
Prepaid expenses and other | 6,240 | 5,474 | ||||||
Total current assets | 241,775 | 251,522 | ||||||
Long-Term Assets | ||||||||
Cash restricted | 66,537 | 24,573 | ||||||
Property, plant and equipment | 1,008,319 | 1,024,662 | ||||||
Investments | 7,695 | 6,314 | ||||||
Deferred note issuance and other costs | 7,674 | 8,364 | ||||||
Deferred income tax | 38,798 | 78,381 | ||||||
1,129,023 | 1,142,294 | |||||||
Total assets | € | 1,370,798 | € | 1,393,816 | ||||
LIABILITIES | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | € | 109,113 | € | 112,726 | ||||
Debt, current portion | 75,375 | 27,601 | ||||||
Total current liabilities | 184,488 | 140,327 | ||||||
Long-Term Liabilities | ||||||||
Debt, less current portion | 898,379 | 922,619 | ||||||
Unrealized foreign exchange rate derivative loss | 11,735 | 61,979 | ||||||
Unrealized interest rate derivative losses | 42,320 | 78,646 | ||||||
Pension and other post-retirement benefit obligations | 16,541 | 17,113 | ||||||
Capital leases and other | 9,980 | 9,945 | ||||||
Deferred income tax | 17,428 | 14,444 | ||||||
996,383 | 1,104,746 | |||||||
Total liabilities | 1,180,871 | 1,245,073 | ||||||
Minority Interest | — | — | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common shares | 181,655 | 181,586 | ||||||
Additional paid-in capital, stock options | 87 | 14 | ||||||
Deficit | (12,961 | ) | (47,970 | ) | ||||
Accumulated other comprehensive income | 21,146 | 15,113 | ||||||
Total shareholders’ equity | 189,927 | 148,743 | ||||||
Total liabilities and shareholders’ equity | € | 1,370,798 | € | 1,393,816 | ||||
FORM 10-Q
QUARTERLY REPORT - PAGE 3
(Unaudited)
(Euros in thousands, except for per share data)
2006 | 2005 | |||||||
Revenues | € | 325,769 | € | 227,502 | ||||
Costs and expenses: | ||||||||
Cost of sales | 298,045 | 210,167 | ||||||
27,724 | 17,335 | |||||||
General and administrative expenses | (18,591 | ) | (15,316 | ) | ||||
Sale of emission allowances | 13,246 | 6,288 | ||||||
Income from operations | 22,379 | 8,307 | ||||||
Other income (expense) | ||||||||
Interest expense | (46,037 | ) | (41,463 | ) | ||||
Investment income | 3,011 | 981 | ||||||
Unrealized foreign exchange gain (loss) on debt | 12,173 | (7,509 | ) | |||||
Realized loss on derivative instruments | (5,219 | ) | (295 | ) | ||||
Unrealized gain (loss) on derivative instruments | 90,724 | (73,015 | ) | |||||
Impairment of investments | — | (1,645 | ) | |||||
Total other income (expense) | 54,652 | (122,946 | ) | |||||
Income (loss) before income taxes and minority interest | 77,031 | (114,639 | ) | |||||
Income tax (provision) benefit | (42,920 | ) | 21,412 | |||||
Income (loss) before minority interest | 34,111 | (93,227 | ) | |||||
Minority interest | 898 | 11,409 | ||||||
Net income (loss) | € | 35,009 | € | (81,818 | ) | |||
(Deficit) retained earnings, beginning of period | (47,970 | ) | 69,176 | |||||
Deficit, end of period | € | (12,961 | ) | € | (12,642 | ) | ||
Income (loss) per share | ||||||||
Basic | € | 1.06 | € | (2.80 | ) | |||
Diluted | € | 0.86 | € | (2.80 | ) | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 4
(Unaudited)
(Euros in thousands, except for per share data)
2006 | 2005 | |||||||
Revenues | € | 166,705 | € | 129,609 | ||||
Costs and expenses: | ||||||||
Cost of sales | 153,706 | 119,178 | ||||||
12,999 | 10,431 | |||||||
General and administrative expenses | (9,733 | ) | (7,518 | ) | ||||
Sale of emission allowances | 7,608 | 6,288 | ||||||
Income from operations | 10,874 | 9,201 | ||||||
Other income (expense) | ||||||||
Interest expense | (23,112 | ) | (22,200 | ) | ||||
Investment income | 1,267 | 806 | ||||||
Unrealized foreign exchange gain (loss) on debt | 6,060 | (9,806 | ) | |||||
Realized loss on derivative instruments | (1,657 | ) | — | |||||
Unrealized gain (loss) on derivative instruments | 46,347 | (69,451 | ) | |||||
Total other income (expense) | 28,905 | (100,651 | ) | |||||
Income (loss) before income taxes and minority interest | 39,779 | (91,450 | ) | |||||
Income tax (provision) benefit | (21,807 | ) | 24,447 | |||||
Income (loss) before minority interest | 17,972 | (67,003 | ) | |||||
Minority interest | 449 | 4,852 | ||||||
Net income (loss) | € | 18,421 | € | (62,151 | ) | |||
(Deficit) retained earnings, beginning of period | (31,382 | ) | 49,509 | |||||
Deficit, end of period | € | (12,961 | ) | € | (12,642 | ) | ||
Income (loss) per share | ||||||||
Basic | € | 0.56 | € | (1.88 | ) | |||
Diluted | € | 0.45 | € | (1.88 | ) | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 5
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Euros in thousands)
2006 | 2005 | |||||||
Net income (loss) | € | 35,009 | € | (81,818 | ) | |||
Other comprehensive gain: | ||||||||
Foreign currency translation adjustment | 5,360 | 1,118 | ||||||
Pension plan additional minimum liability | (17 | ) | — | |||||
Unrealized gains on securities | ||||||||
Unrealized holding gains arising during the period | 690 | 305 | ||||||
Other comprehensive gain | 6,033 | 1,423 | ||||||
Total comprehensive income (loss) | € | 41,042 | € | (80,395 | ) | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 6
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Euros in thousands)
2006 | 2005 | |||||||
Net income (loss) | € | 18,421 | € | (62,151 | ) | |||
Other comprehensive gain: | ||||||||
Foreign currency translation adjustment | 8,345 | 1,750 | ||||||
Pension plan additional minimum liability | 2 | — | ||||||
Unrealized gains on securities | ||||||||
Unrealized holding gains arising during the period | 569 | — | ||||||
Other comprehensive gain | 8,916 | 1,750 | ||||||
Total comprehensive income (loss) | € | 27,337 | € | (60,401 | ) | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 7
(Unaudited)
(Euros in thousands)
2006 | 2005 | |||||||
Cash Flows from (used in) Operating Activities: | ||||||||
Net income (loss) | € | 35,009 | € | (81,818 | ) | |||
Adjustments to reconcile net income (loss) to cash flows from operating activities | ||||||||
Unrealized (gains) losses on derivatives | (85,505 | ) | 73,015 | |||||
Depreciation and amortization | 29,082 | 25,299 | ||||||
Unrealized foreign exchange (gain) loss on debt | (12,173 | ) | 7,509 | |||||
Impairment of investments and securities | — | 1,645 | ||||||
Minority interest | (898 | ) | (11,409 | ) | ||||
Deferred income taxes | 42,567 | (21,638 | ) | |||||
Stock compensation expense | 207 | 72 | ||||||
Other | (490 | ) | 125 | |||||
Changes in current assets and liabilities | ||||||||
Receivables | (13,486 | ) | (20,742 | ) | ||||
Inventories | 10,670 | (16,757 | ) | |||||
Accounts payable and accrued expenses | (3,347 | ) | 41,319 | |||||
Other | (252 | ) | (1,853 | ) | ||||
Net cash from (used in) operating activities | 1,384 | (5,233 | ) | |||||
Cash Flows used in Investing Activities: | ||||||||
Cash restricted | (40,817 | ) | 35,808 | |||||
Purchase of property, plant and equipment | (15,439 | ) | (8,493 | ) | ||||
Acquisition of Celgar pulp mill | — | (146,608 | ) | |||||
Net cash used in investing activities | (56,256 | ) | (119,293 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Decrease in construction costs payable | (212 | ) | (31,346 | ) | ||||
Proceeds from borrowings of notes payable and debt | 48,634 | 325,195 | ||||||
Repayment of notes payable and debt | (375 | ) | (183,691 | ) | ||||
Proceeds from investment grants | — | 342 | ||||||
Repayment of capital lease obligations | (2,431 | ) | (1,907 | ) | ||||
Issuance of shares of common stock | 69 | 66,645 | ||||||
Net cash from financing activities | 45,685 | 175,238 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,281 | ) | 5,594 | |||||
Net (decrease) increase in cash and cash equivalents | (10,468 | ) | 56,306 | |||||
Cash and cash equivalents, beginning of period | 83,547 | 49,568 | ||||||
Cash and cash equivalents, end of period | € | 73,079 | € | 105,874 | ||||
FORM 10-Q
QUARTERLY REPORT - PAGE 8
FOR SIX MONTHS ENDED June 30, 2006
(Euros in thousands, except for shares and per share data)
FORM 10-Q
QUARTERLY REPORT - PAGE 9
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Six Months Ended | ||||
June 30, 2005 | ||||
Net Loss | ||||
As reported | € | (81,818 | ) | |
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of any related tax effects | (21 | ) | ||
Pro forma | € | (81,839 | ) | |
Basic and Diluted Loss Per Share | ||||
As reported | € | (2.80 | ) | |
Pro forma | € | (2.80 | ) | |
Three Months Ended | ||||
June 30, 2005 | ||||
Net Loss | ||||
As reported | € | (62,151 | ) | |
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of any related tax effects | (11 | ) | ||
Pro forma | € | (62,162 | ) | |
Basic and Diluted Loss Per Share | ||||
As reported | € | (1.88 | ) | |
Pro forma | € | (1.88 | ) | |
FORM 10-Q
QUARTERLY REPORT - PAGE 10
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Outstanding Options | Exercisable Options | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||||||||||||||
Exercise | Remaining | Average | Average | |||||||||||||||||||||||||
Price Range | Number | Contractual Life | Exercise price | Number | Exercise Price | |||||||||||||||||||||||
(In U.S. Dollars) | (Years) | (In U.S. Dollars) | (In U.S. Dollars) | |||||||||||||||||||||||||
$ | 5.65 | - | 6.375 | 920,000 | 4.00 | $ | 6.30 | 886,666 | $ | 6.32 | ||||||||||||||||||
8.50 | 135,000 | 1.00 | 8.50 | 135,000 | 8.50 | |||||||||||||||||||||||
7.30 | 30,000 | 9.00 | 7.30 | 10,000 | 7.30 | |||||||||||||||||||||||
7.92 | 100,000 | 9.25 | 7.92 | 33,333 | 7.92 | |||||||||||||||||||||||
1,185,000 | $ | 6.71 | 1,064,999 | $ | 6.66 |
FORM 10-Q
QUARTERLY REPORT - PAGE 11
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Income (loss) from continuing operations – basic | € | 35,009 | € | (81,818 | ) | € | 18,421 | € | (62,151 | ) | ||||||
Interest on convertible notes, net of tax | 2,767 | — | 1,441 | — | ||||||||||||
Income (loss) from continuing operations – diluted | € | 37,776 | € | (81,818 | ) | € | 19,862 | € | (62,151 | ) | ||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 33,169,637 | 29,270,388 | 33,170,129 | 33,055,103 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Stock options and awards | 274,686 | — | 292,002 | — | ||||||||||||
Convertible notes | 10,645,161 | — | 10,645,161 | — | ||||||||||||
Diluted | 44,089,484 | 29,270,388 | 44,107,292 | 33,055,103 | ||||||||||||
Income (loss) from continuing operations per share: | ||||||||||||||||
Basic | € | 1.06 | € | (2.80 | ) | € | 0.56 | € | (1.88 | ) | ||||||
Diluted | € | 0.86 | € | (2.80 | ) | € | 0.45 | € | (1.88 | ) | ||||||
FORM 10-Q
QUARTERLY REPORT - PAGE 12
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Purchase price: | ||||
Cash (including defined working capital) | € | 142,940 | ||
Equity – common shares | 30,814 | |||
Acquisition costs | 3,668 | |||
€ | 177,422 | |||
Net assets acquired: | ||||
Receivables | € | 32 | ||
Inventories | 19,969 | |||
Prepaids and other assets | 616 | |||
Property, plant and equipment | 175,096 | |||
Accrued expenses and other liabilities | (4,103 | ) | ||
Pension plan and post-retirement benefits obligations | (14,188 | ) | ||
€ | 177,422 | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 13
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Corporate, | ||||||||||||||||||||||||||||
Rosenthal | Celgar | Stendal | Total | Other and | Consolidated | |||||||||||||||||||||||
Pulp | Pulp | Pulp | Pulp | Paper | Eliminations | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2006 | ||||||||||||||||||||||||||||
Sales to external customers | € | 68,941 | € | 100,811 | € | 122,510 | € | 292,262 | € | 33,507 | € | — | € | 325,769 | ||||||||||||||
Intersegment net sales | (152 | ) | 23 | 4,688 | 4,559 | 108 | (4,667 | ) | — | |||||||||||||||||||
68,789 | 100,834 | 127,198 | 296,821 | 33,615 | (4,667 | ) | 325,769 | |||||||||||||||||||||
Operating costs | 49,453 | 98,702 | 95,571 | 243,726 | 29,971 | (4,434 | ) | 269,263 | ||||||||||||||||||||
Operating depreciation and amortization | 7,750 | 6,291 | 14,129 | 28,170 | 456 | 156 | 28,782 | |||||||||||||||||||||
General and administrative | 3,592 | 4,939 | 5,940 | 14,471 | 2,276 | 1,844 | 18,591 | |||||||||||||||||||||
(Sale) purchase of emission allowances | (3,651 | ) | — | (9,595 | ) | (13,246 | ) | — | — | (13,246 | ) | |||||||||||||||||
57,144 | 109,932 | 106,045 | 273,121 | 32,703 | (2,434 | ) | 303,390 | |||||||||||||||||||||
Income (loss) from operations | 11,645 | (9,098 | ) | 21,153 | 23,700 | 912 | (2,233 | ) | 22,379 | |||||||||||||||||||
Interest expense | (46,037 | ) | ||||||||||||||||||||||||||
Investment income | 3,011 | |||||||||||||||||||||||||||
Derivative financial instruments, net | 85,505 | |||||||||||||||||||||||||||
Unrealized foreign exchange gain on debt | 12,173 | |||||||||||||||||||||||||||
Income before income taxes and minority interest | € | 77,031 | ||||||||||||||||||||||||||
Segment assets | € | 332,485 | € | 237,175 | € | 746,557 | € | 1,316,217 | € | 22,020 | € | 32,561 | € | 1,370,798 | ||||||||||||||
Corporate, | ||||||||||||||||||||||||||||
Rosenthal | Celgar(1) | Stendal | Total | Other and | Consolidated | |||||||||||||||||||||||
Pulp | Pulp | Pulp | Pulp | Paper | Eliminations | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2005 | ||||||||||||||||||||||||||||
Sales to external customers | € | 65,936 | € | 48,480 | € | 81,606 | € | 196,022 | € | 31,480 | € | — | € | 227,502 | ||||||||||||||
Intersegment net sales | — | — | 3,340 | 3,340 | — | (3,340 | ) | — | ||||||||||||||||||||
65,936 | 48,480 | 84,946 | 199,362 | 31,480 | (3,340 | ) | 227,502 | |||||||||||||||||||||
Operating costs | 47,405 | 40,554 | 71,546 | 159,505 | 29,601 | (3,822 | ) | 185,284 | ||||||||||||||||||||
Operating depreciation and amortization | 6,630 | 4,097 | 13,454 | 24,181 | 379 | 323 | 24,883 | |||||||||||||||||||||
General and administrative | 3,810 | 2,837 | 1,677 | 8,324 | 2,562 | 4,430 | 15,316 | |||||||||||||||||||||
(Sale) purchase of emission allowances | (2,135 | ) | — | (4,153 | ) | (6,288 | ) | — | — | (6,288 | ) | |||||||||||||||||
55,710 | 47,488 | 82,524 | 185,722 | 32,542 | 931 | 219,195 | ||||||||||||||||||||||
Income (loss) from operations | 10,226 | 992 | 2,422 | 13,640 | (1,062 | ) | (4,271 | ) | 8,307 | |||||||||||||||||||
Interest expense | (41,463 | ) | ||||||||||||||||||||||||||
Investment income | 981 | |||||||||||||||||||||||||||
Derivative financial instruments, net | (73,310 | ) | ||||||||||||||||||||||||||
Unrealized foreign exchange loss on debt | (7,509 | ) | ||||||||||||||||||||||||||
Impairment of investments | (1,645 | ) | ||||||||||||||||||||||||||
Loss before income taxes and minority interest | € | (114,639 | ) | |||||||||||||||||||||||||
Segment assets | € | 347,935 | € | 244,361 | € | 906,244 | € | 1,498,540 | € | 24,294 | € | 15,995 | € | 1,538,829 | ||||||||||||||
(1) | The results of the Celgar pulp mill are from the date of its acquisition on February 14, 2005. |
FORM 10-Q
QUARTERLY REPORT - PAGE 14
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Corporate, | ||||||||||||||||||||||||||||
Rosenthal | Celgar | Stendal | Total | Other and | Consolidated | |||||||||||||||||||||||
Pulp | Pulp | Pulp | Pulp | Paper | Eliminations | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2006 | ||||||||||||||||||||||||||||
Sales to external customers | € | 34,269 | € | 54,514 | € | 61,811 | € | 150,594 | € | 16,111 | € | — | € | 166,705 | ||||||||||||||
Intersegment net sales | (194 | ) | 23 | 2,373 | 2,202 | 108 | (2,310 | ) | — | |||||||||||||||||||
34,075 | 54,537 | 64,184 | 152,796 | 16,219 | (2,310 | ) | 166,705 | |||||||||||||||||||||
Operating costs | 25,466 | 53,137 | 47,446 | 126,049 | 14,453 | (1,664 | ) | 138,838 | ||||||||||||||||||||
Operating depreciation and amortization | 4,213 | 3,277 | 7,070 | 14,560 | 230 | 78 | 14,868 | |||||||||||||||||||||
General and administrative | 2,265 | 2,815 | 3,183 | 8,263 | 1,135 | 335 | 9,733 | |||||||||||||||||||||
(Sale) purchase of emission allowances | (1,884 | ) | — | (5,724 | ) | (7,608 | ) | — | — | (7,608 | ) | |||||||||||||||||
30,060 | 59,229 | 51,975 | 141,264 | 15,818 | (1,251 | ) | 155,831 | |||||||||||||||||||||
Income (loss) from operations | 4,015 | (4,692 | ) | 12,209 | 11,532 | 401 | (1,059 | ) | 10,874 | |||||||||||||||||||
Interest expense | (23,112 | ) | ||||||||||||||||||||||||||
Investment income | 1,267 | |||||||||||||||||||||||||||
Derivative financial instruments, net | 44,690 | |||||||||||||||||||||||||||
Unrealized foreign exchange gain on debt | 6,060 | |||||||||||||||||||||||||||
Income before income taxes and minority interest | € | 39,779 | ||||||||||||||||||||||||||
Corporate, | ||||||||||||||||||||||||||||
Rosenthal | Celgar | Stendal | Total | Other and | Consolidated | |||||||||||||||||||||||
Pulp | Pulp | Pulp | Pulp | Paper | Eliminations | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2005 | ||||||||||||||||||||||||||||
Sales to external customers | € | 31,840 | € | 40,864 | € | 40,808 | € | 113,512 | € | 16,097 | € | — | € | 129,609 | ||||||||||||||
Intersegment net sales | — | — | 1,786 | 1,786 | — | (1,786 | ) | — | ||||||||||||||||||||
31,840 | 40,864 | 42,594 | 115,298 | 16,097 | (1,786 | ) | 129,609 | |||||||||||||||||||||
Operating costs | 22,217 | 35,419 | 34,411 | 92,047 | 15,370 | (2,135 | ) | 105,282 | ||||||||||||||||||||
Operating depreciation and amortization | 3,362 | 3,274 | 6,773 | 13,409 | 198 | 289 | 13,896 | |||||||||||||||||||||
General and administrative | 1,909 | 1,162 | 702 | 3,773 | 1,326 | 2,419 | 7,518 | |||||||||||||||||||||
(Sale) purchase of emission allowances | (2,135 | ) | — | (4,153 | ) | (6,288 | ) | — | — | (6,288 | ) | |||||||||||||||||
25,353 | 39,855 | 37,733 | 102,941 | 16,894 | 573 | 120,408 | ||||||||||||||||||||||
Income (loss) from operations | 6,487 | 1,009 | 4,861 | 12,357 | (797 | ) | (2,359 | ) | 9,201 | |||||||||||||||||||
Interest expense | (22,200 | ) | ||||||||||||||||||||||||||
Investment income | 806 | |||||||||||||||||||||||||||
Derivative financial instruments, net | (69,451 | ) | ||||||||||||||||||||||||||
Unrealized foreign exchange loss on debt | (9,806 | ) | ||||||||||||||||||||||||||
Loss before income taxes and minority interest | € | (91,450 | ) | |||||||||||||||||||||||||
FORM 10-Q
QUARTERLY REPORT - PAGE 15
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
June 30, 2006 | December 31, 2005 | |||||||
Raw materials | € | 44,277 | € | 42,649 | ||||
Finished goods | 25,267 | 38,498 | ||||||
€ | 69,544 | € | 81,147 | |||||
Six Months Ended June 30, | ||||||||||||||||
2006 | 2005 | |||||||||||||||
Pension | Post-Retirement | Pension | Post-Retirement | |||||||||||||
Benefits | Benefits | Benefits | Benefits | |||||||||||||
Service cost | € | 448 | € | 227 | € | 245 | € | 107 | ||||||||
Interest cost | 706 | 382 | 481 | 234 | ||||||||||||
Expected return on plan assets | (786 | ) | — | (471 | ) | — | ||||||||||
Recognized net loss | — | 50 | — | — | ||||||||||||
Net periodic benefit cost | € | 368 | € | 659 | € | 255 | € | 341 | ||||||||
Three Months Ended June 30, | ||||||||||||||||
2006 | 2005 | |||||||||||||||
Pension | Post-Retirement | Pension | Post-Retirement | |||||||||||||
Benefits | Benefits | Benefits | Benefits | |||||||||||||
Service cost | € | 222 | € | 112 | € | 161 | € | 58 | ||||||||
Interest cost | 350 | 190 | 323 | 146 | ||||||||||||
Expected return on plan assets | (389 | ) | — | (321 | ) | — | ||||||||||
Recognized net loss | — | 25 | — | — | ||||||||||||
Net periodic benefit cost | € | 183 | € | 327 | € | 163 | € | 204 | ||||||||
FORM 10-Q
QUARTERLY REPORT - PAGE 16
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Six Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
Realized loss on derivative financial instruments | € | (5,219 | ) | € | (295 | ) | ||
Unrealized net gain (loss) on interest rate derivatives | 36,326 | (20,475 | ) | |||||
Unrealized net gain (loss) on foreign exchange derivatives | 54,398 | (52,540 | ) | |||||
Unrealized gain (loss) on derivative financial instruments | € | 90,724 | € | (73,015 | ) | |||
Three Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
Realized loss on derivative financial instruments | € | (1,657 | ) | € | — | |||
Unrealized net gain (loss) on interest rate derivatives | 12,820 | (20,819 | ) | |||||
Unrealized net gain (loss) on foreign exchange derivatives | 33,527 | (48,632 | ) | |||||
Unrealized gain (loss) on derivative financial instruments | € | 46,347 | € | (69,451 | ) | |||
FORM 10-Q
QUARTERLY REPORT - PAGE 17
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
June 30, 2006 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | € | 37,018 | € | 36,061 | € | — | € | 73,079 | ||||||||
Cash restricted | — | 5,892 | — | 5,892 | ||||||||||||
Receivables | 47,468 | 39,552 | — | 87,020 | ||||||||||||
Inventories | 36,653 | 32,891 | — | 69,544 | ||||||||||||
Prepaid expenses and other | 3,620 | 2,620 | — | 6,240 | ||||||||||||
Total current assets | 124,759 | 117,016 | — | 241,775 | ||||||||||||
Cash restricted | — | 66,537 | — | 66,537 | ||||||||||||
Property, plant and equipment | 400,046 | 608,273 | — | 1,008,319 | ||||||||||||
Other | 10,048 | 5,321 | — | 15,369 | ||||||||||||
Deferred income tax | 18,149 | 20,649 | — | 38,798 | ||||||||||||
Due from unrestricted group | 49,302 | — | (49,302 | ) | — | |||||||||||
Total assets | € | 602,304 | € | 817,796 | € | (49,302 | ) | € | 1,370,798 | |||||||
LIABILITIES | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued expenses | € | 43,851 | € | 65,262 | € | — | € | 109,113 | ||||||||
Debt, current portion | — | 75,375 | — | 75,375 | ||||||||||||
Total current liabilities | 43,851 | 140,637 | — | 184,488 | ||||||||||||
Debt, less current portion | 322,732 | 575,647 | — | 898,379 | ||||||||||||
Due to restricted group | — | 49,302 | (49,302 | ) | — | |||||||||||
Unrealized derivative loss | — | 54,055 | — | 54,055 | ||||||||||||
Other | 21,160 | 5,361 | — | 26,521 | ||||||||||||
Deferred income tax | 2,379 | 15,049 | — | 17,428 | ||||||||||||
Total liabilities | 390,122 | 840,051 | (49,302 | ) | 1,180,871 | |||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Total shareholders’ equity (deficit) | 212,182 | (22,255 | )(1) | — | 189,927 | |||||||||||
Total liabilities and shareholders’ equity | € | 602,304 | € | 817,796 | € | (49,302 | ) | € | 1,370,798 | |||||||
(1) | Shareholders’ equity does not include government grants received or receivable related to the Stendal mill. Shareholders’ equity is impacted by the unrealized non-cash marked to market valuation losses on derivative financial instruments. |
FORM 10-Q
QUARTERLY REPORT - PAGE 18
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
December 31, 2005 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
ASSETS | ||||||||||||||||
Current | ||||||||||||||||
Cash and cash equivalents | € | 48,790 | € | 34,757 | € | — | € | 83,547 | ||||||||
Cash restricted | — | 7,039 | — | 7,039 | ||||||||||||
Receivables | 41,349 | 32,966 | — | 74,315 | ||||||||||||
Inventories | 47,100 | 34,047 | — | 81,147 | ||||||||||||
Prepaid expenses and other | 2,940 | 2,534 | — | 5,474 | ||||||||||||
Total current assets | 140,179 | 111,343 | — | 251,522 | ||||||||||||
Cash restricted | — | 24,573 | — | 24,573 | ||||||||||||
Property, plant and equipment | 404,151 | 620,511 | — | 1,024,662 | ||||||||||||
Other | 10,533 | 4,145 | — | 14,678 | ||||||||||||
Deferred income tax | 24,303 | 54,078 | — | 78,381 | ||||||||||||
Due from unrestricted group | 46,412 | — | (46,412 | ) | — | |||||||||||
Total assets | € | 625,578 | € | 814,650 | € | (46,412 | ) | € | 1,393,816 | |||||||
LIABILITIES | ||||||||||||||||
Current | ||||||||||||||||
Accounts payable and accrued expenses | € | 46,867 | € | 65,859 | € | — | € | 112,726 | ||||||||
Debt, current portion | — | 27,601 | — | 27,601 | ||||||||||||
Total current liabilities | 46,867 | 93,460 | — | 140,327 | ||||||||||||
Debt, less current portion | 342,023 | 580,596 | — | 922,619 | ||||||||||||
Due to restricted group | — | 46,412 | (46,412 | ) | — | |||||||||||
Unrealized derivative loss | — | 140,625 | — | 140,625 | ||||||||||||
Other | 20,722 | 6,336 | — | 27,058 | ||||||||||||
Deferred income tax | 1,851 | 12,593 | — | 14,444 | ||||||||||||
Total liabilities | 411,463 | 880,022 | (46,412 | ) | 1,245,073 | |||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Total shareholders’ equity (deficit) | 214,115 | (65,372 | )(1) | — | 148,743 | |||||||||||
Total liabilities and shareholders’ equity | € | 625,578 | € | 814,650 | € | (46,412 | ) | € | 1,393,816 | |||||||
(1) | Shareholders’ equity does not include government grants received or receivable related to the Stendal mill. Shareholders’ equity is impacted by the unrealized non-cash marked to market valuation losses on derivative financial instruments. |
FORM 10-Q
QUARTERLY REPORT - PAGE 19
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Six Months Ended June 30, 2006 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
Revenues | € | 169,623 | € | 160,813 | € | (4,667 | ) | € | 325,769 | |||||||
Operating costs | 148,388 | 125,309 | (4,434 | ) | 269,263 | |||||||||||
Operating depreciation and amortization | 14,197 | 14,585 | — | 28,782 | ||||||||||||
General and administrative expenses | 10,375 | 8,216 | — | 18,591 | ||||||||||||
(Sale) purchase of emission allowances | (3,651 | ) | (9,595 | ) | — | (13,246 | ) | |||||||||
169,309 | 138,515 | (4,434 | ) | 303,390 | ||||||||||||
Income from operations | 314 | 22,298 | (233 | ) | 22,379 | |||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (16,442 | ) | (31,355 | ) | 1,760 | (46,037 | ) | |||||||||
Investment income | 2,119 | 2,652 | (1,760 | ) | 3,011 | |||||||||||
Derivative financial instruments, net | — | 85,505 | — | 85,505 | ||||||||||||
Unrealized foreign exchange gain on debt | 12,173 | — | — | 12,173 | ||||||||||||
Total other (expense) income | (2,150 | ) | 56,802 | — | 54,652 | |||||||||||
Income (loss) before income taxes and minority interest | (1,836 | ) | 79,100 | (233 | ) | 77,031 | ||||||||||
Income tax provision | (6,905 | ) | (36,015 | ) | — | (42,920 | ) | |||||||||
Income (loss) before minority interest | (8,741 | ) | 43,085 | (233 | ) | 34,111 | ||||||||||
Minority interest | — | 898 | — | 898 | ||||||||||||
Net income (loss) | € | (8,741 | ) | € | 43,983 | € | (233 | ) | € | 35,009 | ||||||
Six Months Ended June 30, 2005 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
Revenues | € | 114,416 | € | 113,086 | € | — | € | 227,502 | ||||||||
Operating costs | 87,260 | 98,024 | — | 185,284 | ||||||||||||
Operating depreciation and amortization | 10,829 | 13,616 | 438 | 24,883 | ||||||||||||
General and administrative | 11,077 | 4,239 | — | 15,316 | ||||||||||||
(Sale) purchase of emission allowances | (2,135 | ) | (4,153 | ) | — | (6,288 | ) | |||||||||
107,031 | 111,726 | 438 | 219,195 | |||||||||||||
Income from operations | 7,385 | 1,360 | (438 | ) | 8,307 | |||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (15,985 | ) | (26,571 | ) | 1,093 | (41,463 | ) | |||||||||
Investment income | 1,297 | 777 | (1,093 | ) | 981 | |||||||||||
Derivative financial instruments, net | (463 | ) | (72,847 | ) | — | (73,310 | ) | |||||||||
Unrealized foreign exchange loss on debt | (7,509 | ) | — | — | (7,509 | ) | ||||||||||
Impairment of investments | (1,645 | ) | — | — | (1,645 | ) | ||||||||||
Total other expense | (24,305 | ) | (98,641 | ) | — | (122,946 | ) | |||||||||
Loss before income taxes and minority interest | (16,920 | ) | (97,281 | ) | (438 | ) | (114,639 | ) | ||||||||
Income tax (provision) benefit | (4,776 | ) | 26,188 | — | 21,412 | |||||||||||
Loss before minority interest | (21,696 | ) | (71,093 | ) | (438 | ) | (93,227 | ) | ||||||||
Minority interest | — | 11,409 | — | 11,409 | ||||||||||||
Net loss | € | (21,696 | ) | € | (59,684 | ) | € | (438 | ) | € | (81,818 | ) | ||||
FORM 10-Q
QUARTERLY REPORT - PAGE 20
FOR SIX MONTHS ENDED JUNE 30, 2006
(Euros in thousands, except for shares and per share data)
Three Months Ended June 30, 2006 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
Revenues | ��� | 88,612 | € | 80,403 | € | (2,310 | ) | € | 166,705 | |||||||
Operating costs | 79,249 | 61,253 | (1,664 | ) | 138,838 | |||||||||||
Operating depreciation and amortization | 7,568 | 7,300 | — | 14,868 | ||||||||||||
General and administrative expenses | 5,415 | 4,318 | — | 9,733 | ||||||||||||
(Sale) purchase of emission allowances | (1,884 | ) | (5,724 | ) | — | (7,608 | ) | |||||||||
90,348 | 67,147 | (1,664 | ) | 155,831 | ||||||||||||
Income (loss) from operations | (1,736 | ) | 13,256 | (646 | ) | 10,874 | ||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (7,979 | ) | (16,018 | ) | 885 | (23,112 | ) | |||||||||
Investment income | (142 | ) | 2,294 | (885 | ) | 1,267 | ||||||||||
Derivative financial instruments, net | 79 | 44,611 | — | 44,690 | ||||||||||||
Unrealized foreign exchange gain on debt | 6,060 | — | — | 6,060 | ||||||||||||
Total other (expense) income | (1,982 | ) | 30,887 | — | 28,905 | |||||||||||
Income (loss) before income taxes and minority interest | (3,718 | ) | 44,143 | (646 | ) | 39,779 | ||||||||||
Income tax provision | (3,872 | ) | (17,935 | ) | — | (21,807 | ) | |||||||||
Income (loss) before minority interest | (7,590 | ) | 26,208 | (646 | ) | 17,972 | ||||||||||
Minority interest | — | 449 | — | 449 | ||||||||||||
Net income (loss) | € | (7,590 | ) | € | 26,657 | € | (646 | ) | € | 18,421 | ||||||
Three Months Ended June 30, 2005 | ||||||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||||||
Revenues | € | 72,704 | € | 56,905 | € | — | € | 129,609 | ||||||||
Operating costs | 57,287 | 47,995 | — | 105,282 | ||||||||||||
Operating depreciation and amortization | 6,704 | 6,971 | 221 | 13,896 | ||||||||||||
General and administrative | 5,490 | 2,028 | — | 7,518 | ||||||||||||
(Sale) purchase of emission allowances | (2,135 | ) | (4,153 | ) | — | (6,288 | ) | |||||||||
67,346 | 52,841 | 221 | 120,408 | |||||||||||||
Income from operations | 5,358 | 4,064 | (221 | ) | 9,201 | |||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (8,314 | ) | (14,585 | ) | 699 | (22,200 | ) | |||||||||
Investment income | 970 | 467 | (631 | ) | 806 | |||||||||||
Derivative financial instruments, net | (358 | ) | (69,093 | ) | — | (69,451 | ) | |||||||||
Unrealized foreign exchange loss on debt | (9,806 | ) | — | — | (9,806 | ) | ||||||||||
Impairment of investments | (467 | ) | — | 467 | — | |||||||||||
Total other income (expense) | (17,975 | ) | (83,211 | ) | 535 | (100,651 | ) | |||||||||
Income (loss) before income taxes and minority interest | (12,617 | ) | (79,147 | ) | 314 | (91,450 | ) | |||||||||
Income tax (provision) benefit | (1,661 | ) | 26,108 | — | 24,447 | |||||||||||
Income (loss) before minority interest | (14,278 | ) | (53,039 | ) | 314 | (67,003 | ) | |||||||||
Minority interest | — | 4,852 | — | 4,852 | ||||||||||||
Net loss | € | (14,278 | ) | € | (48,187 | ) | € | 314 | € | (62,151 | ) | |||||
FORM 10-Q
QUARTERLY REPORT - PAGE 21
FORM 10-Q
QUARTERLY REPORT - PAGE 22
Six Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
(ADMTs) | ||||||||
Sales Volume by Product Class | ||||||||
Pulp sales volume by mill: | ||||||||
Rosenthal | 149,236 | 154,800 | ||||||
Stendal | 277,408 | 204,988 | ||||||
Celgar | 229,722 | 118,188 | ||||||
Total pulp sales volume(1) | 656,366 | 477,976 | ||||||
Paper sales volume | 32,084 | 34,478 | ||||||
Total sales volume(1) | 688,450 | 512,454 | ||||||
(in thousands) | ||||||||
Revenues by Product Class | ||||||||
Pulp revenues by mill: | ||||||||
Rosenthal | € | 67,545 | € | 64,504 | ||||
Stendal | 120,522 | 80,873 | ||||||
Celgar(1) | 100,811 | 48,480 | ||||||
Total pulp revenues(1) | 288,878 | 193,857 | ||||||
Paper revenues | 33,335 | 31,463 | ||||||
Total pulp and paper sales revenues(1) | 322,213 | 225,320 | ||||||
Third party transportation revenues | 3,556 | 2,182 | ||||||
Total sales revenues | € | 325,769 | € | 227,502 | ||||
(1) | Excluding intercompany sales volumes of 9,857 and 7,594 ADMTs of pulp and intercompany net sales revenues of approximately€4.7 million and€3.3 million in the six months ended June 30, 2006 and 2005, respectively. |
FORM 10-Q
QUARTERLY REPORT - PAGE 23
Six Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
(ADMTs) | ||||||||
Production by Product Class | ||||||||
Pulp production by mill: | ||||||||
Rosenthal | 143,530 | 157,315 | ||||||
Stendal | 270,592 | 231,719 | ||||||
Celgar(1) | 212,088 | 171,833 | ||||||
Total pulp production | 626,210 | 560,867 | ||||||
Paper production | 33,602 | 33,937 | ||||||
Total production | 659,812 | 594,804 | ||||||
(1) | The results of the Celgar pulp mill are included from the date of its acquisition on February 14, 2005. |
FORM 10-Q
QUARTERLY REPORT - PAGE 24
FORM 10-Q
QUARTERLY REPORT - PAGE 25
FORM 10-Q
QUARTERLY REPORT - PAGE 26
Six Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005(1) | |||||||
(in thousands) | ||||||||
Net income (loss) | € | 35,009 | € | (81,818 | ) | |||
Minority interest | (898 | ) | (11,409 | ) | ||||
Income taxes (benefit) | 42,920 | (21,412 | ) | |||||
Interest expense | 46,037 | 41,463 | ||||||
Investment income | (3,011 | ) | (981 | ) | ||||
Derivative financial instruments, net (gain) loss | (85,505 | ) | 73,310 | |||||
Foreign exchange (gain) loss on debt | (12,173 | ) | 7,509 | |||||
Impairment of investments | — | 1,645 | ||||||
Income from operations | 22,379 | 8,307 | ||||||
Add: Depreciation and amortization | 28,782 | 24,883 | ||||||
Operating EBITDA | € | 51,161 | € | 33,190 | ||||
(1) | The results of the Celgar pulp mill are included from the date of its acquisition on February 14, 2005. |
Three Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
(ADMTs) | ||||||||
Sales Volume by Product Class | ||||||||
Pulp sales volume by mill: | ||||||||
Rosenthal | 73,010 | 75,996 | ||||||
Stendal | 136,894 | 102,915 | ||||||
Celgar | 119,361 | 99,841 | ||||||
Total pulp sales volume(1) | 329,265 | 278,752 | ||||||
Paper sales volume | 15,482 | 17,840 | ||||||
Total sales volume(1) | 344,747 | 296,592 | ||||||
(in thousands) | ||||||||
Revenues by Product Class | ||||||||
Pulp revenues by mill: | ||||||||
Rosenthal | € | 33,776 | € | 31,115 | ||||
Stendal | 60,741 | 40,345 | ||||||
Celgar | 54,514 | 40,864 | ||||||
Total pulp revenues(1) | 149,031 | 112,324 | ||||||
Paper revenues | 16,097 | 16,097 | ||||||
Total pulp and paper sales revenues(1) | 165,128 | 128,421 | ||||||
Third party transportation revenues | 1,577 | 1,188 | ||||||
Total sales revenues | € | 166,705 | € | 129,609 | ||||
(1) | Excluding intercompany sales volumes of 4,871 and 4,105 ADMTs of pulp and intercompany net sales revenues of approximately€2.3 million and€1.7 million in the three months ended June 30, 2006 and 2005, respectively. |
FORM 10-Q
QUARTERLY REPORT - PAGE 27
Three Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
(ADMTs) | ||||||||
Production by Product Class | ||||||||
Pulp production by mill: | ||||||||
Rosenthal | 67,376 | 81,443 | ||||||
Stendal | 139,715 | 123,738 | ||||||
Celgar | 100,651 | 111,071 | ||||||
Total pulp production | 307,742 | 316,252 | ||||||
Paper production | 16,427 | 17,979 | ||||||
Total production | 324,169 | 334,231 | ||||||
FORM 10-Q
QUARTERLY REPORT - PAGE 28
FORM 10-Q
QUARTERLY REPORT - PAGE 29
Three Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
(in thousands) | ||||||||
Net income (loss) | € | 18,421 | € | (62,151 | ) | |||
Minority interest | (449 | ) | (4,852 | ) | ||||
Income taxes (benefit) | 21,807 | (24,447 | ) | |||||
Interest expense | 23,112 | 22,200 | ||||||
Investment income | (1,267 | ) | (806 | ) | ||||
Derivative financial instruments, net (gain) loss | (44,690 | ) | 69,451 | |||||
Foreign exchange (gain ) loss on debt | (6,060 | ) | 9,806 | |||||
Income from operations | 10,874 | 9,201 | ||||||
Add: Depreciation and amortization | 14,868 | 13,896 | ||||||
Operating EBITDA | € | 25,742 | € | 23,097 | ||||
As at | As at | |||||||
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
(in thousands) | ||||||||
Financial Position | ||||||||
Cash and cash equivalents | € | 73,079 | € | 83,547 | ||||
Working capital(1) | 57,287 | 111,195 | ||||||
Property, plant and equipment | 1,008,319 | 1,024,662 | ||||||
Total assets | 1,370,798 | 1,393,816 | ||||||
Long-term liabilities | 996,383 | (2) | 1,104,746 | |||||
Shareholders’ equity | 189,927 | 148,743 |
(1) | Does not include approximately€7.0 million of government grants in 2006, which we expect to receive in 2006, and approximately€65.9 million of government grants in 2005, all of which has been received, related to the Stendal mill from German federal and state governments. | |
(2) | Includes€15.6 million outstanding under the revolving credit facilities for the Celgar mill. |
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Six Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005(1) | |||||||
(in thousands) | ||||||||
Restricted Group(2) | ||||||||
Net loss | € | (8,741 | ) | € | (21,696 | ) | ||
Income taxes | 6,905 | 4,776 | ||||||
Interest expense | 16,442 | 15,985 | ||||||
Investment and other income | (2,119 | ) | (1,297 | ) | ||||
Derivative financial instruments, net | — | 463 | ||||||
Unrealized foreign exchange (gain) loss on debt | (12,173 | ) | 7,509 | |||||
Impairment of investments | — | 1,645 | ||||||
(Loss) income from operations | 314 | 7,385 | ||||||
Add: Depreciation and amortization | 14,197 | 10,829 | ||||||
Operating EBITDA | € | 14,511 | € | 18,214 | ||||
(1) | The results of the Celgar pulp mill are from the date of its acquisition on February 14, 2005. | |
(2) | See Note 9 of the financial statements included elsewhere herein for a reconciliation to our consolidated results. |
FORM 10-Q
QUARTERLY REPORT - PAGE 36
FORM 10-Q
QUARTERLY REPORT - PAGE 37
Three Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
(in thousands) | ||||||||
Restricted Group(1) | ||||||||
Net loss | € | (7,590 | ) | € | (14,278 | ) | ||
Income taxes | 3,872 | 1,661 | ||||||
Interest expense | 7,979 | 8,314 | ||||||
Investment and other expense (income) | 142 | (970 | ) | |||||
Derivative financial instruments, net | (79 | ) | 358 | |||||
Unrealized foreign exchange (gain) loss on debt | (6,060 | ) | 9,806 | |||||
Impairment of investments | — | 467 | ||||||
(Loss) income from operations | (1,736 | ) | 5,358 | |||||
Add: Depreciation and amortization | 7,568 | 6,704 | ||||||
Operating EBITDA | € | 5,832 | € | 12,062 | ||||
(1) | See Note 9 of the financial statements included elsewhere herein for a reconciliation to our consolidated results. |
As at | As at | |||||||
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
(in thousands) | ||||||||
Restricted Group Financial Position(1) | ||||||||
Cash and cash equivalents | € | 37,018 | € | 48,790 | ||||
Working capital | 80,908 | 93,312 | ||||||
Property, plant and equipment | 400,045 | 404,151 | ||||||
Total assets | 602,304 | 625,578 | ||||||
Long-term liabilities | 346,271 | 364,596 | ||||||
Shareholders’ equity | 212,182 | 214,115 |
(1) | See Note 9 of the financial statements included elsewhere herein for a reconciliation to our consolidated results. |
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FORM 10-Q
QUARTERLY REPORT - PAGE 42
Votes For | Votes Withheld | Abstentions and Broker Non-Votes | ||||||||||
Jimmy S.H. Lee | 16,840,127 | 129,064 | — | |||||||||
Kenneth A. Shields | 16,843,181 | 126,010 | — | |||||||||
William D. McCartney | 16,841,981 | 121,010 | — | |||||||||
Graeme A. Witts | 16,841,981 | 127,210 | — | |||||||||
Eric Lauritzen | 16,843,171 | 126,020 | — | |||||||||
Guy W. Adams | 16,841,981 | 127,210 | — |
FORM 10-Q
QUARTERLY REPORT - PAGE 43
Exhibit No. | Description | |
31.1 | Section 302 Certification of Chief Executive Officer | |
31.2 | Section 302 Certification of Chief Financial Officer | |
32.1* | Section 906 Certification of Chief Executive Officer | |
32.2* | Section 906 Certification of Chief Financial Officer |
* | In accordance with Release 33-8212 of the Commission, these Certifications: (i) are “furnished” to the Commission and are not “filed” for the purposes of liability under the Securities Exchange Act of 1934, as amended; and (ii) are not to be subject to automatic incorporation by reference into any of the Company’s registration statements filed under the Securities Act of 1933, as amended for the purposes of liability thereunder or any offering memorandum, unless the Company specifically incorporates them by reference therein. |
FORM 10-Q
QUARTERLY REPORT - PAGE 44
MERCER INTERNATIONAL INC. | ||||
By: | /s/ David M. Gandossi | |||
David M. Gandossi | ||||
Secretary and Chief Financial Officer | ||||
FORM 10-Q
QUARTERLY REPORT - PAGE 45