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Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
Q1 2009 Earning Report of Horizon Lines Inc
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Q1 2009 Earning Report of Horizon Lines Inc

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  • 1. Horizon Lines, Inc. First Quarter 2009 Earnings Release April 24, 2009
  • 2. Agenda First Quarter 2009 Earnings Release Introduction and Overview Chuck Raymond Chairman, President & Chief Executive Officer, Horizon Lines, Inc. Shipping Review John Keenan President & Chief Operating Officer, Horizon Lines, LLC Logistics Review Brian Taylor President & Chief Operating Officer, Horizon Logistics, LLC Financial Review Mike Avara Senior Vice President & Chief Financial Officer, Horizon Lines, Inc. Questions and Answers 2
  • 3. Forward- Forward-Looking Statements Risks, Uncertainties, Other Factors with Respect to “Forward- Looking Statements”: Certain statements contained in this presentation constitute “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and, accordingly, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the “forward-looking statements”. Such factors are detailed in the Horizon Lines, Inc.’s Form 10-K filed with the Securities and Exchange Commission on February 5, 2009. 3
  • 4. First Quarter 2009 Earnings Release Chuck Raymond Chairman, President & Chief Executive Officer Horizon Lines, Inc. Introduction and Overview 4
  • 5. First Quarter Highlights Challenges intensified Global recession worsened Ongoing economic stagnation in Puerto Rico Deepening slowdown in Hawaii Severe winter in Alaska However, financial performance was slightly above our expectations Adjusted EBITDA of $19.2 million Rate per container, net of fuel, up 3.3% Free cash flow consumption down from year ago Debt levels below internal forecasts 5
  • 6. 2009 Outlook Deep and protracted recession expected to continue through 2009 Overall GDP contraction seen moderating after first quarter Unemployment expected to peak in 2010 HRZ remains well positioned Domestic trade remains much more stable than international trade Recession resistant – Serves the basic needs of our tradelanes Aligned with the right customers and intensely focused on service excellence Operating from a stable financial platform - Financial performance on plan - Debt covenants continued compliance projected - No recapitalization needs anticipated until 2012 6
  • 7. First Quarter 2009 Earnings Release John Keenan President and Chief Operating Officer Horizon Lines, LLC Liner Review 7
  • 8. Alaska Economic Outlook Recession impact muted, despite falling oil prices 2009 Forecast* April January GSP (oil-driven) (26.4)% (26.4)% Average Oil Price $53/bbl $51/bbl Employment (0.6)% (0.6)% Real Personal Income 0.3% 0.3% Business climate remains cautiously optimistic Near-term state budget deficits covered by the $12 billion in state’s Constitutional Budget Reserve Fund and the Earnings Reserve Account of the Permanent Fund Population and employment relatively stable Housing market less impacted than rest of nation Banks well capitalized Major retailers, including Wal-Mart, Lowe’s, Sports Authority, continue expansion plans HRZ remains well aligned with appropriate customers * Government, industry projections, Northern Economics, Northrim Bank 8
  • 9. Hawaii/Guam Economic Outlook HAWAII Ongoing slowdown in tourism and sharp construction decline dragging on economy 2009 Forecast* April January GSP (0.2)% (0.0)% Visitor Arrivals (5.2)% (5.7)% Employment (2.4)% (1.4)% Real Personal Income (2.5)% (0.7)% Commercial, resort and residential construction off sharply due to the global economic slowdown and financing constraints Residential construction slowdown expected to deepen as income and wealth loss undermine housing demand State and federal construction projects and privatized military housing construction expected to help mitigate commercial and residential construction decline GUAM Recession-driven decline in discretionary purchases balanced by sustained volume of private and military construction projects New cranes installed and operating to meet cargo volume increases as military relocates from Okinawa *University of Hawaii Economic Research Organization, Hawaii Department of Business, Economic Development & Tourism, Guam Visitors Bureau 9
  • 10. Puerto Rico Economic Outlook In fourth year of economic decline 2009 Forecast* April January GDP (3.4)% (2.9)% Unemployment Rate (12.7)% (11.9)% Inflation 7.5% 7.5% Government Budget Deficit $3.2 Billion $3.2 Billion Government Spending (2.8)% (2.8)% New government acting swiftly to reduce budget deficit and stimulate economy Moody’s assigns ‘stable’ rating to commonwealth’s general obligation bonds Cites swift action being taken by new commonwealth government Business climate is cautiously optimistic Buoyed by government initiatives and anticipated funds from economic stimulus package Companies with expansion plans include Sears, SuperMax and IHOP *Puerto Rico Planning Board; Unemployment rate represents average rate through February for fiscal year beginning in July. 10
  • 11. Economic Stimulus American Recovery and Reinvestment Act expected to provide relief Signed into law on February 17, 2009 Expected to provide funds over two years - Tax benefits and credits - Projects in infrastructure, transportation, education, healthcare, law enforcement, energy and agriculture Estimated Funding - Alaska $1.0 Billion - Hawaii* $4.6 Billion - Guam $ 48 Million - Puerto Rico $ 5.0 Billion * Hawaii state capital improvement project with known timeline and funding in place expected to provide additional $711 million for construction spending in 2009 11
  • 12. Volume Update First quarter 7.1%volume decline generally met expectations Alaska (4)% Container Volume Impacted by severe winter, seasonal 66,195 weakness 7.1% 61,477 Hawaii/Guam (13)% Tourism, construction decline driving recession Puerto Rico (3)% 2008 2009 Ongoing recession balanced by cautiously optimistic business climate Estimated market share stable to slightly higher in each trade lane 12
  • 13. Unit Revenue Update Unit Revenue Per Container $3,910 Unit revenue declined across all $3,741 4.3% tradelanes due to lower fuel surcharges However, revenue per container, net of fuel, rose 3.3% Experienced some increasing rate 2008 2009 Total pressure as industry volumes weakened $3,331 Partially offset weakness by 3.3% $3,224 continued focus on higher-value cargo, including reefer and foodstuffs 2008 2009 Net of Fuel 13
  • 14. Vessel Performance Vessel Availability Vessel On-Time Arrival 99.6% 99.4% 81.0% 0.1% 78.0% 3.0% 2008 2009 2008 2009 Vessel availability and on-time arrival Vessel Utilization remained strong, despite adverse weather in all tradelanes, and speed restrictions associated with “Right 63.0% 59.0% Whale” in the Atlantic 4.0% Vessel utilization decline due largely to softening volume in Hawaii/Guam and 2008 2009 Alaska trades 14
  • 15. Coastwise Service, Legislative & Labor Relations Update Coastwise Service Remains on hold until economy improves Harbor Maintenance Tax Senate bill introduced in March to exempt certain shipping from the harbor maintenance tax Title XI Funding Continue to work with maritime trade unions and new Congress to increase funding and amend utilization criteria for financing future U.S. shipbuilding Labor Relations No collective bargaining agreements expire until June 2010 15
  • 16. First Quarter 2009 Earnings Release Brian Taylor President and Chief Operating Officer Horizon Logistics, LLC Logistics Review 16
  • 17. Logistics Results ($ in Millions) 1st Quarter Results Revenue $ 8.0 Operating Expense 9.7 EBITDA $ (1.7) First-quarter performance impacted by slowing economy and Q4 loss of major customer Won significant new business from ‘big-box’ retailer Based on projected pipeline of business, results expected to improve throughout the year 17
  • 18. Logistics Lines of Business Recap Expedited Service Business growing in alternative energy and other ‘high-touch’ segments Completed PacWind turbine delivery to Times Square Drayage Awarded additional business from major retail, tire and food products companies Warehouse Increased opportunities on West Coast Freight Brokerage Experiencing increased business with diverse customers Implementing technology improvements to increase competitiveness Non-Vessel Operating Common Carrier (NVOCC) Volume of leads and quotes continues to grow despite volatile freight markets Expanding to serve export business to Europe 18
  • 19. First Quarter 2009 Earnings Release Mike Avara Senior Vice President & Chief Financial Officer Horizon Lines, Inc. Financial Review 19
  • 20. Changes In Accounting ($) Additional non-cash interest expense with adoption of FSP APB 14-1 and impact of change in accounting for share based payment awards 2008 and 2009 Quarterly Impact Q1 Q2 Q3 Q4 Year As reported 2008 Adjusted* Net Income Per Diluted Share $ 0.07 $ 0.33 $ 0.53 $ 0.09 $ 1.02 Impact of Change in Accounting for Convertible Notes and $ (0.05) $ (0.05) $ (0.05) $ (0.05) $ (0.20) Participating Securities 2008 Adjusted Net Income Per Diluted Share, After $ 0.02 $ 0.28 $ 0.48 $ 0.04 $ 0.82 Retrospective Application 2009 Adjustments to Net Income Per Share $ (0.05) $ (0.05) $ (0.05) $ (0.06) $ (0.21) * See Adjusted Net Income and Adjusted Net Income Per Diluted Share reconciliations on pages 42 and 43. 20
  • 21. Operating Revenue ($ in Millions) $305.9 $272.4 11.0% 2008 2009 21
  • 22. Operating Revenue Change ($ in Millions) Revenue Change Fuel Surcharges $ (20.1) Volume Variance (18.4) Other / Non-Transportation Revenue (5.9) Rate / Mix Improvement 10.2 Other Horizon Logistics 0.7 Total Revenue Decrease $ (33.5) 22
  • 23. Adjusted Operating Income (1) ($ in Millions) $11.6 62.2% $4.4 2008 2009 (1) See reconciliation of Operating Income to Adjusted Operating Income on page 35. 23
  • 24. Adjusted EBITDA (1) ($ in Millions) $27.3 29.7% $19.2 2008 2009 (1) See reconciliation of Net Income to EBITDA on page 39. 24
  • 25. Adjusted Net (Loss) Income (1) ($ in Millions) (2) 2008 2009 $0.7 ($4.7) (1) See reconciliation of Net Income to Adjusted Net Income on page 36. (2) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 25
  • 26. Adjusted Diluted EPS (1) ($) 2008 2009 (2) 2008 2009 $0.02 ($0.15) (1) See reconciliation of Diluted EPS to Adjusted Diluted EPS on page 37. (2) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 26
  • 27. Segment Results ($ in Millions) Eliminations / Liner Logistics Other Consolidated Revenue $ 265.1 $ 37.3 $ 30.0 $ 272.4 Adjusted EBITDA $ 20.9 $ (1.7) $ -- $ 19.2 27
  • 28. Free Cash Flow 2009 2008 ($ in Millions) Adjusted EBITDA $ 19.2 $ 27.3 Stock Based Compensation 0.9 1.2 Gain / Proceeds on Equipment Disposals 0.1 0.1 Working Capital (4.9) (21.7) Vessel Payments in Excess of Accruals (18.1) (17.5) Annual Cash Incentive Plan 1.0 0.5 Discretionary Performance Payments (2.0) - Capital Expenditures (3.3) (3.4) Dry-Dock Expenditures (3.1) (2.5) Taxes (0.1) (0.1) Interest, Net (9.6) (10.3) Adjusted Free Cash Flow (19.9) (26.4) OPEIU Severance (0.2) - Restructuring Expenses (1.5) - DoJ Investigation Related Expenses (3.0) - Equipment Impairment (1.0) - Acquisitions - (0.2) Free Cash Flow (25.6) (26.6) Debt Borrowings 40.0 67.0 Debt Payments (11.6) (10.7) Financing Fees - (0.1) Dividends (3.3) (3.3) Share Repurchases - (29.3) Net Cash Flow $ (0.5) $ (3.0) 28
  • 29. Liquidity, Credit Facility Compliance & Debt Structure ($ in Millions) Corporate Liquidity • Cash Balance $ 5.0 • Revolver Availability 91.7 Total Liquidity $ 96.7 Credit Facility Compliance Q1 LTM 2009 Covenant • Interest Coverage Ratio 4.40 >3.50 • Senior Secured Leverage Ratio 2.15 <3.00 GAAP Funded Rate Formula Interest Rate Maturity Debt Structure Amount Amount (1) Revolver $ 150.0 $ 150.0 LIBOR+1.50% *2.01% 08/08/12 (1) Term Loan 117.2 117.2 3.02%+1.50% 4.52% 08/08/12 Note Payable 1.7 1.7 5.26% 2/24/14 Total Senior Debt 268.9 268.9 Convertible Notes 294.8 330.0 4.25% 08/15/12 Total Long-Term Debt 563.7 598.9 *3.74% *weighted average (1) Maturity will accelerate to February 15, 2012, if convertible notes are not refinanced by that date 29
  • 30. Volume, Rates & Fuel Assumptions 2009 2008 Plan Actual Volume Alaska 2.6 % 0.7 % Hawaii/Guam (5.7)% (4.6)% Puerto Rico (3.1)% (4.8)% Total (2.5)% (3.4)% Rate, Net of Fuel 2.2 % 2.4 % Bunker Fuel Price per Ton $250 - $275 $532 30
  • 31. 2009 Cost Savings & Cash Preservation Initiatives ($ in Millions) Estimated 2009 Savings Cash Initiatives Completed and Underway Expense Total Severance Net Non-Union Workforce Reduction $ 10.4 $ 10.1 $ (3.4) $ 6.7 Capital Spending Reduction -- $ 26.0 $ -- $ 26.0 Additional EDGE Savings $ 3.5 $ 3.5 $ -- $ 3.5 $ 13.9 $ 39.6 $ (3.4) $ 36.2 Additional Considerations Deployment Changes Operational and Structural Additional EDGE Savings Financial 31
  • 32. First Quarter 2009 Earnings Release Questions & Answers 32
  • 33. Financial Appendix 33
  • 34. Income Statement Summary Actual Adjusted ($ in Millions, Except per Share Amounts) Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 23, 2008 (1) March 22, 2009 (2) March 22, 2009 March 23, 2008 Operating Revenue $ 272.4 $ 305.9 $ 272.4 $ 305.9 Operating Expense 273.2 294.3 268.0 294.3 Operating (Loss) Income (0.8) 11.6 4.4 11.6 Other Expense 9.5 11.2 9.4 11.2 Pretax (Loss) Income (10.3) 0.4 (5.0) 0.4 Income Tax Benefit (0.3) (0.3) (0.3) (0.3) Net (Loss) Income $ (10.0) $ 0.7 $ (4.7) $ 0.7 Earnings (Loss) Per Share – Basic $ (0.33) $ .02 $ (0.15) $ .02 Earnings (Loss) Per Share – Diluted $ (0.33) $ .02 $ (0.15) $ .02 Shares Outstanding – Basic 30,423,953 30,290,758 30,423,953 30,491,779 Shares Outstanding – Diluted 30,423,953 30,792,959 30,423,953 30,874,439 EBITDA $ 14.0 $ 27.3 $ 19.2 $ 27.3 Operating Ratio 100.3% 96.2% 98.4% 96.2% (1) Results are adjusted for retrospective application of changes in accounting. See page 41 for impact of change in accounting for convertible notes and restricted stock share-based payments awards as participating securities (2) Adjustments exclude the impact of restructuring charges and anti-trust legal expenses 34
  • 35. Adjusted Operating Income Results ($ in Millions) Quarter Ended Quarter Ended March 22, 2009 March 23, 2008 Operating (Loss) Income $ (0.8) $ 11.6 Adjustments: Restructuring Charge 0.8 -- Anti-Trust Legal Expenses 4.4 -- Total Adjustments 5.2 -- Adjusted Operating Income $ 4.4 $ 11.6 35
  • 36. Adjusted Net (loss) Income Results ($ in Millions) Quarter Ended Quarter Ended March 23, 2008 (1) March 22, 2009 Net (Loss) Income (1) $ (10.0) $ 0.7 Adjustments: Restructuring Charge 0.8 -- Anti-Trust Legal Expenses 4.4 -- Tax Impact of Adjustments 0.1 -- Total Adjustments 5.3 -- Adjusted Net (Loss) Income $ (4.7) $ 0.7 (1) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 36
  • 37. Adjusted Net (loss) Income Per Diluted Share Quarter Ended Quarter Ended March 23, 2008 (1) March 22, 2009 Net (Loss) Income, Per Diluted Share (1) $ (0.33) $ 0.02 Adjustments Per Share: Restructuring Charge 0.03 -- Anti-Trust Legal Expenses 0.15 -- Total Adjustments 0.18 -- Adjusted Net (Loss) Income, Per Diluted Share $ (0.15) $ 0.02 (1) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 37
  • 38. Net (loss) Income/EBITDA Reconciliation ($ in Millions) Net Income/EBITDA Reconciliation Quarter Ended Quarter Ended March 23, 2008 (1) March 22, 2009 Net (Loss) Income $ (10.0) $ 0.7 Interest Expense, Net 9.5 11.2 Tax Benefit (0.3) (0.3) Depreciation and Amortization 14.8 15.7 EBITDA $ 14.0 $ 27.3 Note: EBITDA is defined as net income plus net interest expense, income taxes, depreciation and amortization. We believe that EBITDA is a meaningful measure for investors as (i) EBITDA is a component of the measure used by our board of directors and management team to evaluate our operating performance, (ii) the senior credit facility contains covenants that require Horizon Lines Inc. to maintain certain interest expense coverage and leverage ratios, which contain EBITDA and (iii) EBITDA is a measure used by our management team to make day-to-day operating decisions. Adjusted EBITDA excludes certain charges in order to evaluate our operating performance, for making day-to-day operating decisions and when determining the payment of discretionary bonuses. (1) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 38
  • 39. Net (Loss) Income / Adjusted EBITDA Reconciliation ($ in Millions) Quarter Ended Quarter Ended March 23, 2008 (1) March 22, 2009 Net (Loss) Income $ (10.0) $ 0.7 Interest Expense, Net 9.4 11.2 Tax Benefit (0.3) (0.3) Depreciation and Amortization 14.8 15.7 EBITDA 14.0 27.3 Restructuring Charge .8 -- Anti-Trust Legal Expenses 4.4 -- Adjusted EBITDA $ 19.2 $ 27.3 Note: EBITDA is defined as net income plus net interest expense, income taxes, depreciation and amortization. We believe that EBITDA is a meaningful measure for investors as (i) EBITDA is a component of the measure used by our board of directors and management team to evaluate our operating performance, (ii) the senior credit facility contains covenants that require Horizon Lines, Inc. to maintain certain interest expense coverage and leverage ratios, which contain EBITDA and (iii) EBITDA is a measure used by our management team to make day-to-day operating decisions. Adjusted EBITDA excludes certain charges in order to evaluate our operating performance, for making day-to-day operating decisions and when determining the payment of discretionary bonuses. (1) Results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 41. 39
  • 40. Operating Income (Loss) to Adjusted EBITDA Segment Reconciliation ($ in Millions) First Quarter 2009 Liner Logistics Consolidated Operating Income (Loss) $ 1.0 $ (1.8) $ (0.8) Depreciation and Amortization 10.9 0.1 11.0 Amortization of Vessel Dry-docking 3.8 -- 3.8 EBITDA 15.7 (1.7) 14.0 Restructuring Charge 0.8 -- 0.8 Anti-Trust Related Legal Expenses 4.4 -- 4.4 Adjusted EBITDA $ 20.9 $ (1.7) $ 19.2 40
  • 41. Changes in Accounting for Convertible Notes and Share-Based Payment Awards Share- ($ in Thousands, Except Per Share Amounts) Income Statement Quarter Ended March 23, 2008 As Reported Adjustments As Adjusted Interest Expense, Net $ 9,009 $ 2,150 $ 11,159 Income Tax Expense (Benefit) $ 504 $ (785) $ (281) Net Income $ 2,091 $ (1,365) $ 726 Denominator for Basic Net Income Per Share 30,291 201 30,492 Effect of Dilutive Securities 502 (120) 382 Denominator for Diluted Net Income Per Share 30,793 81 30,874 Net Income Per Share Basic $ 0.07 $ (0.05) $ 0.02 Diluted $ 0.07 $ (0.05) $ 0.02 41
  • 42. Changes in Accounting for Convertible Notes ($ in Millions) 2008 Adjusted Net Income (Loss) Reconciliation Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year Ended Mar. 23, 2008 Jun. 22, 2008 Sept. 21, 2008 Dec. 21, 2008 Dec. 21, 2008 Net Income (loss) $ 2.1 $ 7.2 $ 12.5 $ (18.8) $ 3.1 Adjustments: Anti-Trust Related legal expenses - 2.4 4.6 3.7 10.7 Union Severance - 0.8 - - 0.8 Impairment charge - - - 25.4 25.4 Restructuring charge - - - 3.2 3.2 Tax impact of adjustments - (0.5) (0.9) (10.9) (12.4) Total adjustments - 2.7 3.6 21.5 27.8 Adjusted Net Income 2.1 9.9 16.2 2.7 $ 30.8 Impact of change in accounting for convertible notes (2.2) (2.2) (2.2) (2.3) (8.9) Tax impact 0.8 0.8 0.8 0.8 3.2 Adjusted net income, after retrospective application $ 0.7 $ 8.5 $ 14.7 $ 1.2 $ 25.2 42
  • 43. Changes in Accounting for Convertible Notes and Share-Based Payment Awards Share- ($) 2008 Adjusted Net Income (Loss) Per Diluted Share Reconciliation Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year Ended Mar 23, 2008 Jun 22, 2008 Sept 21, 2008 Dec 21, 2008 Dec 21, 2008 Net Income (loss) Per Share $ 0.07 $ 0.24 $ 0.42 $ (0.63) $ 0.10 Adjustments: Anti-Trust Related Legal Expenses - 0.08 0.15 0.12 0.35 Union Severance - 0.03 - - 0.03 Impairment Charge - - - 0.85 0.84 Restructuring Charge - - - 0.11 0.11 Tax Impact of Adjustments - (0.02) (0.04) (0.36) (0.41) Total Adjustments - 0.09 0.11 0.72 0.92 Adjusted Net Income, Per Diluted Share $ 0.07 $ 0.33 $ 0.53 $ 0.09 $ 1.02 Impact of Change in Accounting for Convertible Notes (0.07) (0.07) (0.07) (0.08) (0.29) Tax Impact 0.03 0.03 0.03 0.03 0.11 Impact of change in accounting for restricted stock share-based payment awards as participating securities (0.01) 0.00 0.00 0.00 (0.01) Adjusted Net Income Per Share, After Retrospective Application $ 0.02 $ 0.28 $ 0.48 $ 0.04 $ 0.82 Diluted Shares As Reported 30,792,959 30,163,161 30,186,831 30,022,491 30,330,786 Impact of Change in Accounting for Restricted Stock Share-Based Payment Awards as Participating Securities 81,480 110,338 205,801 337,933 192,397 Diluted Shares, after Retrospective Application 30,874,439 30,273,499 30,392,632 30,360,424 30,523,183 43

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