Exhibit 99.1
Rock-Tenn Company Reports Third Quarter Fiscal 2006 Results
NORCROSS, Ga.--(BUSINESS WIRE)--Aug. 3, 3006--Rock-Tenn Company
(NYSE:RKT) today reported financial results for the quarter ended June
30, 2006.
Third Quarter Developments
-- Net sales for the third quarter of fiscal 2006 increased 29.1%
to $548.3 million, an increase of $123.7 million from the
third quarter of fiscal 2005.
-- Segment income increased $10.1 million, or 41.1%, to $34.7
million over the prior year quarter.
-- The Company reported net income of $11.0 million, or $0.30 per
diluted share, for the quarter compared to net income of $12.0
million, or $0.33 per diluted share, in the prior year
quarter.
-- Rock-Tenn recorded pre-tax restructuring and other costs
totaling $2.7 million during the quarter. Results of the third
quarter also reflect a $1.0 million pre-tax operating loss at
the Kerman, California folding carton facility that was closed
during the quarter and $4.5 million in lost business and other
incremental costs associated with a mechanical failure of the
white liquor clarifier at the Company's bleached paperboard
mill. These costs aggregate to $0.13 per diluted share
after-tax.
-- In addition, the Company decided to exit from its
merchandising display operations in Mexico and recorded
pre-tax operating losses of $1.7 million, or $0.03 per diluted
share after-tax for the third quarter.
-- Net income for the third quarter of fiscal 2006 reflected tax
benefits of $3.3 million primarily related to R&D tax credits
for fiscal 2002 through 2005 and a change in deferred taxes
due to recently enacted lower income tax rates in Canada.
These benefits total $0.09 per diluted share.
-- Operating income for the prior year quarter included pre-tax
restructuring and other costs of $0.8 million, or $0.01 per
diluted share after-tax, and an additional $1.5 million
pre-tax charge, or $0.03 per diluted share after-tax, for the
resolution of an arbitration relating to the Company's gypsum
paperboard liner joint venture. Net income for the prior year
quarter also included $5.6 million, or $0.16 per diluted
share, for a reduction in tax liabilities from the favorable
resolution of historical federal and state tax deductions.
Segment Results
Packaging Products Segment
Packaging Products segment net sales increased $87.0 million to
$326.2 million in the third quarter of fiscal 2006 compared to the
third quarter of fiscal 2005. The Pulp and Paperboard and Paperboard
Packaging assets acquired from Gulf States Paper Corporation (GSPP) in
June 2005 were the primary factor in the sales increase. Packaging
Products segment operating income increased 24.5% to $13.2 million in
the third quarter of fiscal 2006 compared to the third quarter of
fiscal 2005.
Merchandising Displays Segment
Merchandising Displays segment net sales increased $9.9 million to
$93.4 million in the third quarter of fiscal 2006 over the prior year
quarter, due to higher sales of corrugated packaging. Operating income
for the segment was $2.6 million in the third quarter of fiscal 2006
and $6.4 million in the third quarter of fiscal 2005. The loss
relating to the merchandising display facility in Mexico was the
largest factor in the variance.
Paperboard Segment
Paperboard segment net sales increased $49.1 million to $204.1
million in the third quarter of fiscal 2006 compared to the third
quarter of fiscal 2005 as a result of sales from the GSPP bleached
paperboard and pulp mill acquired in June 2005, strong demand for
recycled paperboard and higher pricing. The average price per ton
increased $13 from the second quarter of fiscal 2006 reflecting
partial recovery of pricing increases in all paperboard and pulp
grades. Paperboard segment operating income increased $11.3 million to
$18.9 million in the third quarter of fiscal 2006 compared to the
prior year quarter. The Company's recycled paperboard mills operated
at 96% of capacity in the third quarter compared to 93% in the prior
year quarter. The bleached paperboard mill operated at 94% of
capacity.
Chairman and Chief Executive Officer's Statement
Rock-Tenn Company Chairman and Chief Executive Officer James A.
Rubright stated, "The continued improvement in our results reflect the
strengthening market for coated recycled paperboard and other recycled
grades. We expect further improvement in the paperboard segment as
pricing for all paperboard grades and market pulp has continued to
improve. Further, this quarter we signed a paperboard supply agreement
with a major folding carton company that will add a minimum of 30,000
tons per year to our coated recycled mill system, which should allow
our mills to operate at higher operating rates than we have over the
last year."
Cash Provided By Operating Activities
Net cash provided by operating activities in the third quarter of
fiscal 2006 was $37.0 million compared to net cash provided by
operating activities of $62.1 million in the prior year quarter.
Financing
Rock-Tenn's net debt (as hereinafter defined) was $830.0 million
at June 30, 2006 compared to $846.6 million at March 31, 2006 and
$876.0 million at September 30, 2005. The Company reduced net debt by
$16.6 million during the quarter, and contributed $11.6 million to its
pension plans during the quarter.
Conference Call
The Company will host a conference call to discuss its results of
operations for the third quarter of fiscal 2006 and other topics that
may be raised during the discussion at 11:00 a.m., Eastern Time, on
Thursday, August 3, 2006. The conference call will be webcast and can
be accessed, along with a copy of this press release and any other
statistical information related to the conference call, at
www.rocktenn.com.
About Rock-Tenn Company
Rock-Tenn Company provides a wide range of marketing and packaging
solutions to consumer products companies at low costs, with combined
pro forma net sales of approximately $2.1 billion and operating
locations in the United States, Canada, Mexico, Argentina and Chile.
The Company is one of North America's leading manufacturers of
packaging products, merchandising displays and bleached and recycled
paperboard.
Cautionary Statements
Statements herein regarding, among others, expectations regarding
operating and financial performance constitute forward-looking
statements within the meaning of the federal securities laws. Such
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those contained in any
forward-looking statement. With respect to these statements, the
Company has made assumptions regarding, among other things, expected
economic, competitive and market conditions generally; expected
volumes and price levels of purchases by customers; energy costs;
competitive conditions in our businesses and possible adverse actions
of our customers, our competitors and suppliers. Management believes
its assumptions are reasonable; however, undue reliance should not be
placed on such estimates, which are based on current expectations.
There are many factors that impact these forward-looking statements
that we cannot predict accurately. Further, our business is subject to
a number of general risks that would affect any such forward-looking
statements including, among others, decreases in demand for the
Company's products; increases in energy, raw materials, shipping and
capital equipment costs; reduced supply of raw materials; fluctuations
in selling prices and volumes; intense competition; the potential loss
of certain customers; and adverse changes in general market and
industry conditions. Such risks are more particularly described in the
Company's filings with the Securities and Exchange Commission,
including under the caption "Business -- Forward-Looking Information"
and "Risk Factors" in the Company's Annual Report on Form 10-K for the
most recently ended fiscal year. Management believes its estimates are
reasonable; however, undue reliance should not be placed on such
estimates, which are based on current expectations. The information
contained herein speaks as of the date hereof and the Company does not
undertake any obligation to update such information as future events
unfold.
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
======================================================================
FOR THE THREE FOR THE NINE
MONTHS ENDED MONTHS ENDED
June June June June
30, 30, 30, 30,
2006 2005 2006 2005
- ----------------------------------------------------------------------
NET SALES $548.3 $424.6 $1,568.4 $1,204.8
Cost of Goods Sold 456.3 352.7 1,327.6 1,019.5
- ----------------------------------------------------------------------
Gross Profit 92.0 71.9 240.8 185.3
Selling, General and
Administrative Expenses 62.0 49.9 181.1 143.6
Restructuring and Other Costs 2.7 0.8 7.2 4.0
- ----------------------------------------------------------------------
Operating Profit 27.3 21.2 52.5 37.7
Interest Expense (14.3) (9.1) (42.1) (22.3)
Interest and Other Income 0.6 0.3 1.2 0.4
Income (Loss) from Unconsolidated
Joint Venture --- (1.3) 1.4 (1.0)
Minority Interest in Income of
Consolidated Subsidiaries (1.6) (1.4) (4.7) (3.0)
- ----------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 12.0 9.7 8.3 11.8
Income Tax (Expense) Benefit (1.0) 2.3 (1.1) 0.9
- ----------------------------------------------------------------------
NET INCOME $ 11.0 $ 12.0 $ 7.2 $ 12.7
- ----------------------------------------------------------------------
Weighted Average Common Shares
Outstanding - Diluted 36.9 35.9 36.6 35.9
- ----------------------------------------------------------------------
Diluted Earnings Per Share $ 0.30 $ 0.33 $ 0.20 $ 0.35
======================================================================
ROCK-TENN COMPANY
SEGMENT INFORMATION
(UNAUDITED)
(IN MILLIONS, EXCEPT TONNAGE DATA)
FOR THE THREE FOR THE NINE
MONTHS ENDED MONTHS ENDED
June June June June
30, 30, 30, 30,
2006 2005 2006 2005
- ----------------------------------------------------------------------
NET SALES:
Packaging Products Segment $ 326.2 $ 239.2 $ 947.0 $ 679.8
Merchandising Displays Segment 93.4 83.5 254.2 249.1
Paperboard Segment 204.1 155.0 597.5 415.5
Intersegment Eliminations (75.4) (53.1) (230.3) (139.6)
- ----------------------------------------------------------------------
TOTAL NET SALES $ 548.3 $ 424.6 $1,568.4 $1,204.8
- ----------------------------------------------------------------------
SEGMENT INCOME:
Packaging Products Segment $ 13.2 $ 10.6 $ 33.4 $ 21.6
Merchandising Displays Segment 2.6 6.4 10.0 13.9
Paperboard Segment 18.9 7.6 33.7 15.6
- ----------------------------------------------------------------------
Total Segment Income $ 34.7 $ 24.6 $ 77.1 $ 51.1
Restructuring and Other Costs (2.7) (0.8) (7.2) (4.0)
Non-Allocated Expense (4.7) (3.9) (16.0) (10.4)
Interest Expense (14.3) (9.1) (42.1) (22.3)
Interest and Other Income 0.6 0.3 1.2 0.4
Minority Interest in Income of
Consolidated Subsidiaries (1.6) (1.4) (4.7) (3.0)
- ----------------------------------------------------------------------
INCOME BEFORE TAXES $ 12.0 $ 9.7 $ 8.3 $ 11.8
======================================================================
Recycled Paperboard Shipped
(in tons) 264,761 256,386 786,984 764,577
Bleached Paperboard Shipped
(in tons)(a) 76,579 26,713 236,450 26,713
Pulp Shipped (in tons)(a) 23,645 6,933 66,550 6,933
======================================================================
(a) Bleached paperboard and market pulp tons shipped begin in June
2005 as a result of the GSPP acquisition.
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN MILLIONS)
======================================================================
FOR THE THREE FOR THE NINE
MONTHS ENDED MONTHS ENDED
June June June June
30, 30, 30, 30,
2006 2005 2006 2005
- ----------------------------------------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 11.0 $ 12.0 $ 7.2 $ 12.7
Items in income not affecting cash:
Depreciation and amortization 26.1 20.5 77.8 57.5
Deferred income tax (benefit)
expense (9.1) 2.4 (1.8) 2.0
Share-based compensation expense 1.0 0.6 2.5 1.3
Income tax benefit of employee
stock options -- -- -- 0.1
Gain on disposal of plant and
equipment and other, net (1.3) (1.8) (1.2) (1.7)
(Gain) loss on foreign currency
transactions 0.3 (0.1) 0.2 0.3
(Income) loss from unconsolidated
joint venture -- 1.3 (1.4) 1.0
Minority interest in income of
consolidated subsidiaries 1.6 1.4 4.7 3.0
Impairment adjustments and other
non-cash items 0.8 -- 2.6 (0.1)
Proceeds from termination of
cash flow interest rate hedges 4.6 -- 14.5 --
Pension funding (more) less than
expense (7.9) (3.1) (8.2) 4.5
Net changes in operating assets and
liabilities 9.9 28.9 8.5 18.1
- ----------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 37.0 62.1 105.4 98.7
- ----------------------------------------------------------------------
INVESTING ACTIVITIES:
Capital expenditures (19.1) (11.8) (46.2) (34.2)
Purchases of marketable securities -- (20.0) -- (195.3)
Maturities and sales of marketable
securities -- 51.2 -- 223.5
Cash paid for purchase of
businesses, net of cash received -- (553.9) (7.8) (554.0)
Proceeds from sale of property,
plant and equipment 3.6 2.8 4.4 5.3
- ----------------------------------------------------------------------
NET CASH USED FOR INVESTING
ACTIVITIES (15.5) (531.7) (49.6) (554.7)
- ----------------------------------------------------------------------
FINANCING ACTIVITIES:
Additions to revolving credit
facilities 4.0 170.0 64.5 170.0
Repayments to revolving credit
facilities (35.1) -- (161.5) --
Additions to debt 15.8 310.5 47.2 310.5
Repayments of debt (3.7) (0.1) (17.1) (9.8)
Payment on termination of fair
value interest rate hedges -- (4.3) -- (4.3)
Debt issuance costs -- (3.8) (0.3) (3.9)
Issuance of common stock 2.7 0.7 5.6 3.5
Excess tax benefits from share-
based compensation 0.1 -- 0.2 --
Capital contributed to consolidated
subsidiary from minority interest -- -- 2.1 --
Cash dividends paid to shareholders (3.3) (3.2) (9.9) (9.7)
Cash distributions to minority
interest (1.9) (1.4) (4.8) (1.9)
- ----------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR)
FINANCING ACTIVITIES (21.4) 468.4 (74.0) 454.4
- ----------------------------------------------------------------------
Effect of exchange rate changes on
cash (0.2) -- (0.6) 0.2
DECREASE IN CASH AND CASH
EQUIVALENTS (0.1) (1.2) (18.8) (1.4)
Cash and cash equivalents:
Beginning of period 8.1 28.5 26.8 28.7
- ----------------------------------------------------------------------
End of period $ 8.0 $ 27.3 $ 8.0 $ 27.3
- ----------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period for:
Income taxes, net of refunds $ 1.4 $ (0.6) $ 5.4 $ 4.1
Interest, net of amounts
capitalized 9.1 0.1 38.3 14.9
======================================================================
ROCK-TENN COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(IN MILLIONS)
======================================================================
June March September
30, 31, 30,
2006 2006 2005
- ----------------------------------------------------------------------
ASSETS:
Cash and cash equivalents $ 8.0 $ 8.1 $ 26.8
Receivables - net 222.3 203.6 199.5
Inventories - at LIFO cost 218.3 208.5 202.0
Other current assets 36.5 42.2 30.5
Current assets held for sale 4.1 5.0 3.4
- ----------------------------------------------------------------------
TOTAL CURRENT ASSETS 489.2 467.4 462.2
- ----------------------------------------------------------------------
Land, building and equipment - net 858.0 861.4 885.0
Intangible and other assets 450.1 454.2 451.2
- ----------------------------------------------------------------------
TOTAL ASSETS $1,797.3 $1,783.0 $1,798.4
======================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current portion of debt $ 111.3 $ 92.8 $ 62.1
Other current liabilities 276.3 245.3 217.1
- ----------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 387.6 338.1 279.2
- ----------------------------------------------------------------------
Long-term maturities of debt 726.7 761.9 840.7
Hedge adjustments resulting from
terminated fair value interest rate
derivatives or swaps 10.9 11.4 12.3
--------- --------- ---------
Total long-term debt 737.6 773.3 853.0
Accrued pension 98.1 106.2 106.8
Deferred income taxes 82.3 90.8 83.0
Other long-term liabilities 4.5 3.7 3.6
Minority interest 18.6 18.9 16.6
Shareholders' equity 468.6 452.0 456.2
- ----------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,797.3 $1,783.0 $1,798.4
======================================================================
Rock-Tenn Company Quarterly Statistics
Paperboard Group Operating Statistics
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
--------------------------------------------------
Average Price Per
Ton (a)
- -----------------
All Tons
2004 $ 422 $ 424 $ 439 $ 455 $ 435
2005 467 472 491 523 492
2006 524 526 539 -- --
Tons Shipped
- ------------
Coated and Specialty (a)
2004 230,710 248,743 248,078 224,881 952,412
2005 210,566 209,706 211,628 209,721 841,621
2006 208,325 223,469 220,596 -- --
Corrugated Medium
2004 43,880 42,942 44,667 46,103 177,592
2005 42,691 45,228 44,758 44,841 177,518
2006 44,985 45,444 44,165 -- --
Bleached Paperboard (b)
2005 -- -- 26,713 84,169 110,882
2006 79,152 80,719 76,579 -- --
Market Pulp (b)
2005 -- -- 6,933 23,104 30,037
2006 14,994 27,911 23,645 -- --
Total (c)
2004 274,590 291,685 292,745 270,984 1,130,004
2005 253,257 254,934 290,032 361,835 1,160,058
2006 347,456 377,543 364,985 -- --
(a) Average Price Per Ton and Tons Shipped include tons shipped by
Seven Hills Paperboard LLC, our unconsolidated joint venture with
LaFarge North America, Inc.
(b) Bleached Paperboard and Market Pulp tons shipped begin in June
2005 as a result of the GSPP acquisition.
(c) Beginning in the third quarter of fiscal 2005, Average Price Per
Ton includes Coated and Specialty Recycled Paperboard, Corrugated
Medium, Bleached Paperboard and Market Pulp.
Rock-Tenn Company Quarterly Statistics
Segment Sales and Operating Income
(In Millions)
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- --------
Packaging Segment
Sales
2004 $208.9 $231.7 $231.6 $235.9 $908.1
2005 221.8 218.8 239.2 314.2 994.0
2006 301.1 319.7 326.2 -- --
Packaging Income
2004 $ 7.0 $ 10.2 $ 11.8 $ 9.0 $ 38.0
2005 5.3 5.7 10.6 11.8 33.4
2006 6.8 13.4 13.2 -- --
Return On Sales
2004 3.4% 4.4% 5.1% 3.8% 4.2%
2005 2.4% 2.6% 4.4% 3.8% 3.4%
2006 2.3% 4.2% 4.0% -- --
Merchandising
Displays Segment
Sales
2004 $ 73.5 $ 77.5 $ 75.8 $ 91.5 $318.3
2005 79.5 86.1 83.5 84.7 333.8
2006 75.4 85.4 93.4 -- --
Merchandising
Displays Income
2004 $ 5.9 $ 7.5 $ 6.1 $ 9.6 $ 29.1
2005 2.7 4.8 6.4 7.2 21.1
2006 3.2 4.2 2.6 -- --
Return on Sales
2004 8.0% 9.7% 8.0% 10.5% 9.1%
2005 3.4% 5.6% 7.7% 8.5% 6.3%
2006 4.2% 4.9% 2.8% -- --
Paperboard Segment
Sales
2004 $128.3 $136.1 $138.6 $136.9 $539.9
2005 128.7 131.8 155.0 199.9 615.4
2006 187.7 205.7 204.1 -- --
Paperboard Income
(Loss)
2004 $ 3.1 $ 2.4 $ 2.6 $ 7.6 $ 15.7
2005 4.4 3.6 7.6 16.0 31.6
2006 (1.0) 15.8 18.9 -- --
Return on Sales
2004 2.4% 1.8% 1.9% 5.6% 2.9%
2005 3.4% 2.7% 4.9% 8.0% 5.1%
2006 (0.5)% 7.7% 9.3% -- --
Rock-Tenn Company Quarterly Statistics
Key Financial Statistics
(In Millions except EPS Data)
1st 2nd 3rd 4th Fiscal
Quarter Quarter Quarter Quarter Year
-------- -------- -------- -------- ------
Net Income (Loss)
2004 $11.9 $ 2.9 $ (3.7) $ 6.5 $17.6
2005 0.5 0.2 12.0 4.9 17.6
2006 (9.0) 5.2 11.0 -- --
Diluted EPS
2004 $0.34 $0.08 $(0.11) $0.18 $0.50
2005 0.01 0.01 0.33 0.14 0.49
2006 (0.25) 0.14 0.30 -- --
Depreciation & Amortization
2004 $18.6 $18.6 $ 18.3 $18.7 $74.2
2005 18.5 18.5 20.5 26.5 84.0
2006 25.8 25.9 26.1 -- --
Capital Expenditures
2004 $15.4 $14.9 $ 18.3 $12.2 $60.8
2005 10.2 12.2 11.8 20.1 54.3
2006 13.5 13.6 19.1 -- --
Non-GAAP Measures
Net Debt
We have defined the non-GAAP measure net debt to include the
aggregate debt obligations reflected in our balance sheet, less the
hedge adjustments resulting from terminated and existing fair value
interest rate derivatives or swaps, the balance of our cash and cash
equivalents and certain other investments that we consider to be
readily available to satisfy such debt obligations.
Rock-Tenn management uses net debt, along with other factors, to
evaluate our financial condition. We believe that net debt is an
appropriate supplemental measure of financial condition because it
provides a more complete understanding of our financial condition
before the impact of our decisions regarding the appropriate use of
cash and liquid investments. Set forth below is a reconciliation of
net debt to the most directly comparable GAAP measures, Total Current
Portion of Debt and Total Long-Term Debt:
(In Millions) June 30, March 31, September 30,
2006 2006 2005
---------- --------- --------------
Total Current Portion of Debt $ 111.3 $ 92.8 $ 62.1
Total Long-Term Debt 737.6 773.3 853.0
---------- --------- --------------
848.9 866.1 915.1
Less: Hedge Adjustments Resulting
From Terminated Fair Value
Interest Rate Derivatives
or Swaps (10.9) (11.4) (12.3)
---------- --------- --------------
838.0 854.7 902.8
Less: Cash and Cash Equivalents (8.0) (8.1) (26.8)
---------- --------- --------------
Net Debt $ 830.0 $ 846.6 $ 876.0
========== ========= ==============
Credit Agreement EBITDA and Total Funded Debt
"Credit Agreement EBITDA" is calculated in accordance with the
definition contained in the Company's Senior Credit Facility. Credit
Agreement EBITDA is generally defined as Consolidated Net Income plus:
consolidated interest expense, income taxes of the consolidated
companies determined in accordance with GAAP, depreciation and
amortization expense of the consolidated companies determined in
accordance with GAAP, certain non-cash and cash charges incurred,
expenses associated with the write up of inventory acquired in the
GSPP acquisition to fair market value as required by SFAS 141, charges
taken resulting from the impact of changes to accounting rules related
to the expensing of stock options and pro forma GSPP EBITDA calculated
giving pro forma effect to the acquisition calculated in accordance
with the methodology applied by the Company in its financial
statements filed with the SEC.
"Total Funded Debt" is calculated in accordance with the
definition contained in the Company's Senior Credit Facility. Total
Funded Debt is generally defined as aggregate debt obligations
reflected in our balance sheet, less the hedge adjustments resulting
from terminated and existing fair value interest rate derivatives or
swaps, plus additional outstanding letters of credit not already
reflected in debt.
Rock-Tenn management uses Credit Agreement EBITDA and Total Funded
Debt to evaluate compliance with Rock-Tenn's debt covenants and
borrowing capacity available under its Senior Credit Facility.
Management believes that investors also use such measures to evaluate
the Company's compliance with its debt covenants and available
borrowing capacity. Borrowing capacity is dependent upon, in addition
to other measures, the "Leverage Ratio," which is defined as Total
Funded Debt divided by Credit Agreement EBITDA. As of June 30, 2006,
the Company's Leverage Ratio was 4.55 times, which compares to a
maximum Leverage Ratio under the Senior Credit Facility of 5.0 times.
Credit Agreement EBITDA and Total Funded Debt are not intended to be
substitutes for GAAP financial measures and should not be used as
such.
Set forth below is a reconciliation of Credit Agreement EBITDA to
net income:
(In Millions) 12 Months Ended
June 30, 2006
---------------
Net Income $ 12.1
Interest Expense and Other Income 55.2
Income Taxes 4.3
Depreciation and Amortization 102.9
Additional Permitted Charges 12.7
---------------
Credit Agreement EBITDA $ 187.2
===============
Set forth below is a reconciliation of Total Funded Debt to the
most directly comparable GAAP measures, Total Current Portion of Debt
and Total Long-Term Debt:
(In Millions) June 30,
2006
---------------
Total Current Portion of Debt $ 111.3
Total Long-Term Debt 737.6
---------------
848.9
Less: Hedge Adjustments Resulting From Terminated
Fair Value Interest Rate Derivatives or Swaps (10.9)
---------------
838.0
Plus: Letters of Credit 13.3
---------------
Total Funded Debt $ 851.3
===============
CONTACT: Rock-Tenn Company
David Rees, 678-291-7552