1) Smurfit-Stone Container Corporation reported a net income of $22 million or $0.09 per diluted share for Q4 2006, compared to a net loss of $0.36 per diluted share in Q4 2005.
2) For full year 2006, Smurfit-Stone reported a net loss of $71 million or $0.28 per diluted share, an improvement from a net loss of $339 million or $1.33 per diluted share in 2005.
3) The company exceeded its cost reduction target for 2006 from its strategic initiatives program, achieving $243 million in savings, and expects further meaningful earnings growth in 2007.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. For Immediate Release
Contact: John Haudrich (investors) 314-656-5375
NEWS
Stephanie Meiners (investors) 314-656-5371
Tom Lange (media) 314-656-5369
Mylene Labrie (Canadian media) 514-864-5103
www.smurfit-stone.com
SMURFIT-STONE REPORTS FOURTH QUARTER 2006 PROFIT OF $22 MILLION
Solid performance driven by favorable pricing, excellent mill productivity,
and benefits from the company’s strategic initiatives program
CHICAGO, January 24, 2007 — Smurfit-Stone Container Corporation (Nasdaq: SSCC)
today reported net income available to common stockholders of $22 million, or $0.09 per
diluted share, for the fourth quarter of 2006. These results include:
• A restructuring charge of $0.02 per diluted share primarily from the closure of
container plants and headcount reductions; and
• A $0.03 per diluted share gain related to a non-cash foreign currency translation
adjustment.
Fourth quarter 2006 results compare favorably to a net loss of $0.36 per diluted share for
the prior year fourth quarter, which included a net $0.08 per share charge for litigation
settlement, restructuring charges, and other unusual items.
Sales for the fourth quarter 2006 were $1.8 billion, compared to $1.6 billion in the fourth
quarter of 2005.
For the full year 2006, Smurfit-Stone reported a net loss available to common stockholders
of $71 million, or $0.28 cents per diluted share, compared to a net loss available to common
stockholders of $339 million, or $1.33 per diluted share in 2005. Operating results for 2006
included restructuring charges of $0.10 per share compared to $0.82 per share in 2005.
Sales for the year were $7.2 billion, compared to $6.8 billion in 2005. 2006 results reflect
the sale of the company’s Consumer Packaging operation on June 30, 2006.
Commenting on results, Patrick J. Moore, chairman and chief executive officer, said, “I am
pleased with our fourth quarter performance and significant operating earnings improvement
in 2006. Despite inflation on all key input costs, we improved our year-over-year operating
performance due to higher prices for our products, excellent supply chain management, and
cumulative benefits achieved during the first full year of our strategic initiatives program.”
Fourth quarter operating profit was $146 million, up significantly from breakeven a year ago.
Consistent with previous guidance, fourth quarter profits were down sequentially due to
lower packaging volume as a result of fewer shipping days and plant closures during the
quarter, additional mill maintenance downtime, and a turbine failure at the company’s
Florence mill. Average containerboard prices decreased slightly from the previous quarter
due to customer mix changes.
2. — Page 2 —
Full year operating profit improved $242 million to $452 million in 2006. Average domestic
linerboard and corrugated container prices increased approximately 15 percent and 5
percent, respectively, from the prior year. Containerboard production increased year-over-
year, despite the closure of two mills in the third quarter 2005, demonstrating strong
productivity improvement. Per-day box shipments declined 1.4 percent in 2006 primarily
due to the rationalization of converting facilities as part of the company’s strategic initiative
program. Better supply chain management helped the company reduce containerboard
inventory levels by 12 percent for the year.
“We made great progress on our strategic initiatives in 2006, exceeding our cost reduction
goal for the year,” Moore said. “I am encouraged by the acceleration of our box plant
rationalizations as we closed 17 plants since the inception of our strategic initiatives
program. Additionally, our restructuring efforts drove headcount reductions of
approximately 2,000 during the year. Several equipment installations and upgrades were
completed this past quarter, and future capital reinvestment will drive further productivity
improvements.”
Smurfit-Stone achieved $243 million in cumulative benefits from its strategic initiatives
program, compared to the company’s target of $240 million by year end. Savings under this
program and improved pricing more than offset significant cost inflation primarily in the areas
of labor and benefits, freight, energy, fiber, and chemicals. Total debt at year end 2006 was
$3,634 million, down $89 million during the quarter and $937 million for the year, principally
due to the sale of the Consumer Packaging operation in the second quarter.
Commenting on the company’s 2007 outlook Moore said, “We expect a meaningful year-
over-year improvement in 2007 operating results. Consistent with prior years, we anticipate
our first quarter results will be impacted sequentially by seasonal factors, including lower mill
production, higher energy usage, increasing fiber costs, and timing of employee benefit
expenses. However, we anticipate that earnings will rebound beginning in the second
quarter.”
Smurfit-Stone management will discuss its fourth quarter 2006 financial performance via live
webcast, including a slide presentation, at 8:00 a.m. CDT (9:00 a.m. EDT) on Wednesday,
January 24. The webcast will be archived to the investors’ page of the company website,
www.smurfit-stone.com.
###
Smurfit-Stone Container Corporation’s (Nasdaq: SSCC) innovative packaging solutions help its customers to
grow their businesses and profits. As North America’s premier packaging company, Smurfit-Stone is the industry’s leading
integrated manufacturer of paperboard and paper-based packaging. Smurfit-Stone also is one of the world’s largest paper
recyclers. The company has led the industry in safety performance every year since 2001 and conducts its business in
compliance with the environmental, health and safety principles of the American Forest & Paper Association. Smurfit-Stone
operates approximately 180 facilities and employs approximately 25,200 people.
This press release contains statements relating to future results, which are forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those
projected as a result of certain risks and uncertainties, including but not limited to changes in general economic conditions,
continued pricing pressures in key product lines, seasonality and higher recycled fiber and energy costs, as well as other
risks and uncertainties described in “forward-looking statements” in the company’s annual report on form 10-K for the
year ended December 31, 2005, as updated from time to time in the company’s Securities and Exchange Commission filings.
In this press release, certain non-U.S. GAAP financial information is presented. A reconciliation of those numbers to U.S.
GAAP financial measures and additional disclosure regarding our use of non-GAAP financial measures are included in the
attached schedules.
3. SMURFIT-STONE CONTAINER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, December 31,
2006 2005
Assets (Unaudited)
Current assets
Cash and cash equivalents……………………………………………… $ 9 $ 5
Receivables, net…………………………………………………………… 166 224
Retained interest in receivables sold (Note 1)………………………… 179 139
Inventories………………………………………………………………… 538 734
Deferred income taxes…………………………………………………… 40
Prepaid expenses and other current assets…………………………… 34 82
Total current assets…………………………………………………… 966 1,184
Net property, plant and equipment…………………………………………… 3,731 4,245
Timberland, less timber depletion…………………………………………… 43 44
Goodwill………………………………………………………………………… 2,873 3,309
Other assets…………………………………………………………………… 204 332
$ 7,817 $ 9,114
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt…………………………………… $ 84 $ 35
Accounts payable………………………………………………………… 542 654
Accrued compensation and payroll taxes……………………………… 211 186
Interest payable…………………………………………………………… 79 97
Income taxes payable…………………………………………………… 2 17
Current deferred taxes…………………………………………………… 15
Other current liabilities…………………………………………………… 147 184
Total current liabilities………………………………………………… 1,065 1,188
Long-term debt, less current maturities……………………………………… 3,550 4,536
Other long-term liabilities……………………………………………………… 1,011 1,123
Deferred income taxes………………………………………………………… 384 385
Stockholders' equity
Preferred stock…………………………………………………………… 93 89
Common stock…………………………………………………………… 3 3
Additional paid-in capital………………………………………………… 4,040 4,009
Retained earnings (deficit)……………………………………………… (1,917) (1,846)
Accumulated other comprehensive income (loss)…………………… (412) (373)
Total stockholders' equity…………………………………………… 1,807 1,882
$ 7,817 $ 9,114
Note 1: At December 31, 2006 and 2005, $590 million and $592 million, respectively, of
receivables had been sold under two accounts receivable programs, of which the company
retained a subordinated interest. The off-balance sheet debt related to the two accounts
receivable programs totaled $448 million and $472 million, respectively as of those dates.
See our Annual Report on Form 10-K for the year ended December 31, 2005 for a further
description of these programs.
4. SMURFIT-STONE CONTAINER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended For the Year Ended
December 31, December 31,
2006 2005 2006 2005
Net sales…………………………………………………………………………………… $ 1,819 $ 1,647 $ 7,157 $ 6,812
Costs and expenses
Cost of goods sold…………………………………………………………………… 1,532 1,518 6,185 6,054
Selling and administrative expenses……………………………………………… 169 199 677 689
Restructuring charges………………………………………………………………… 8 24 43 321
(Gain) loss on sale of assets………………………………………………………… (24) 1
Income (loss) from operations………………………………………………… 110 (94) 276 (253)
Other income (expense)
Interest expense, net………………………………………………………………… (75) (85) (341) (345)
Loss on early extinguishment of debt……………………………………………… (28)
Other, net (Note 1)…………………………………………………………………… 9 (1) (17) (21)
Income (loss) from continuing operations before income taxes…………… 44 (180) (110) (619)
(Provision for) benefit from income taxes……………………………………………… (19) 80 40 241
Income (loss) from continuing operations……………………………………… 25 (100) (70) (378)
Discontinued operations
Income from discontinued operations, net of income tax provision of
$9 for the twelve months ended December 31, 2006, and $7 and $34
respectively for the three and twelve months ended December 31, 2005.. 11 14 51
Loss on disposition of discontinued operations, net of income tax
provision of $174 for the twelve months ended December 31, 2006.......... (3)
Net income (loss) ..................................................................................... 25 (89) (59) (327)
Preferred stock dividends and accretion……………………………………………… (3) (3) (12) (12)
Net income (loss) available to common stockholders……………………… $ 22 $ (92) $ (71) $ (339)
Basic and diluted earnings per common share
Income (loss) from continuing operations........................................................ $ 0.09 $ (0.40) $ (0.32) $ (1.53)
Discontinued operations.................................................................................. 0.04 0.05 0.20
Loss on disposition of discontinued operations................................................. (0.01)
Net income (loss) available to common stockholders……………………… $ 0.09 $ (0.36) $ (0.28) $ (1.33)
Weighted average shares outstanding………………………………………………… 255 255 255 255
Note 1: 2006 includes a non-cash foreign currency gain of $13 million for the 4th quarter and $1 million for the full year.
2005 includes a non-cash foreign currency gain of $3 million for the 4th quarter and a loss of $9 million for the full year.
5. SMURFIT-STONE CONTAINER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
For the Year Ended
December 31,
2006 2005
(Unaudited)
Cash flows from operating activities
Net loss…………………………………………………………………………………………………… $ (59) $ (327)
Adjustments to reconcile net loss to net cash provided by operating activities
Gain on disposition of discontinued operations............................................................... (171)
Loss on early extinguishment of debt………………………………………………………… 28
Depreciation, depletion and amortization…………………………………………………… 377 408
Amortization of deferred debt issuance costs………………………………………………… 9 9
Deferred income taxes………………………………………………………………………… 108 (233)
Pension and postretirement benefits………………………………………………………… (14) (44)
(Gain) loss on sale of assets........................................................................................... (24) 1
Non-cash restructuring charges...................................................................................... 23 267
Non-cash stock-based compensation............................................................................. 25 12
Non-cash foreign currency (gains) losses…………………………………………………… (1) 9
Change in current assets and liabilities, net of effects from acquisitions and
dispositions
Receivables and retained interest in receivables sold………………………………… 11 48
Inventories………………………………………………………………………………… 46 39
Prepaid expenses and other current assets…………………………………………… 15 5
Accounts payable and accrued liabilities………………………………………………… (90) 28
Interest payable…………………………………………………………………………… (17) 3
Other, net………………………………………………………………………………………… (1) (4)
Net cash provided by operating activities……………………………………………………………… 265 221
Cash flows from investing activities
Expenditures for property, plant and equipment……………………………………………………… (274) (276)
Proceeds from property disposals and sale of businesses………………………………………… 980 8
Payments on acquisitions……………………………………………………………………………… (9)
Net cash provided by (used for) investing activities………………………………………………… 706 (277)
Cash flows from financing activities
Proceeds from long-term debt………………………………………………………………………… 162
Net repayments of long-term debt……………………………………………………………………… (937) (93)
Debt repurchase premiums......................................................................................................... (24)
Preferred dividends paid………………………………………………………………………………… (8) (8)
Proceeds from exercise of stock options……………………………………………………………… 2 1
Deferred debt issuance costs…………………………………………………………………………… (7)
Net cash provided by (used for) financing activities………………………………………………… (967) 55
Increase (decrease) in cash and cash equivalents…………………………………………………… 4 (1)
Cash and cash equivalents
Beginning of period……………………………………………………………………………………… 5 6
End of period………………………………………………………………………………………………$ 9 $ 5
7. SMURFIT-STONE CONTAINER CORPORATION
STATISTICAL INFORMATION
2006 2005
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Containerboard and Corrugated Container Segmen
Containerboard System
North American Mill Operating Rates (Containerboard Only)………… 96.9% 100.0% 100.0% 100.0% 87.9% 92.0% 93.6% 97.3%
North American Containerboard Production - M Tons………………… 1,771 1,860 1,888 1,883 1,751 1,852 1,799 1,813
Year over Year Avg. Domestic Linerboard Price Change…………… -0.5% 9.9% 25.8% 24.5% 25.2% 15.7% -7.4% -10.1%
Sequential Avg. Domestic Linerboard Price Change……………….. 10.1% 10.1% 5.0% -2.2% -0.1% -0.3% -8.3% -1.2%
Pulp Production - M Tons……………………………………………….. 145 136 151 132 141 139 145 138
SBS/Bleached Board Production - M Tons…………………………… 72 77 81 83 65 72 76 70
Kraft Paper Production - M Tons………………………………………… 54 47 51 47 52 50 48 54
Corrugated Containers
North American Shipments - BSF ….…………………………………… 20.1 20.2 19.7 19.2 19.6 20.4 20.6 20.0
Per Day North American Shipments - MMSF ...……………………… 314.4 320.1 317.9 319.6 315.6 318.5 321.7 334.0
Year over Year Avg. Corrugated Price Change……………………… -2.5% 3.5% 9.8% 10.8% 9.3% 6.5% -1.0% -3.8%
Sequential Avg. Corrugated Price Change……………………………. 3.3% 4.3% 3.2% -0.4% 1.9% -1.7% -2.7% -1.3%
Other Operations
Fiber Reclaimed and Brokered - M tons…………………………………… 1,666 1,630 1,644 1,674 1,636 1,662 1,604 1,599
8. SMURFIT-STONE CONTAINER CORPORATION
EBITDA, As Defined Below
(In millions)
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
Income (loss) from continuing operations……………………………………………$ 25 $ (100) $ (70) $ (378)
(Benefit from) provision for income taxes……………………………… 19 (80) (40) (241)
Income from discontinued operations before income taxes (Note 1)……… 18 23 86
Interest expense, net...…………….………………………………………… 75 85 341 345
Depreciation, depletion and amortization……………………………………… 89 100 377 408
EBITDA …….……………………………………………………….……………… 208 23 631 220
Receivables discount expense…………………………………………… 7 5 27 18
Restructuring charges…………….…………………………………………. 8 24 43 321
Non-cash foreign currency (gain)/loss...…………………………………… (13) (3) (1) 9
Litigation settlements, net...………………………………………………… 36 36
Loss on early extinguishment of debt………...……………………………. 28
(Gain)/loss on sale of assets……...………………………………………… (24) 1
Other (Note 2)………………………………………..……...……………… 3
Adjusted EBITDA ……………..…………………………………………………… $ 210 $ 85 $ 707 $ 605
Note 1: Income from discontinued operations before income taxes for the year ended December 31, 2005 excludes $1 million of
interest expense allocated to discontinued operations.
Note 2: Income from discontinued operations before income taxes for the year ended December 31, 2006 includes $3 million of
expenses related to the sale of the consumer packaging segment.
quot;EBITDAquot; is defined as net loss before benefit from income taxes, interest expense, net and depreciation, depletion and amortization.
quot;Adjusted EBITDAquot; is defined as EBITDA adjusted as indicated above. EBITDA and Adjusted EBITDA are non-GAAP financial measures.
See disclosure below regarding the use of non-GAAP financial measures.
9. SMURFIT-STONE CONTAINER CORPORATION
ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
$ .09 $ (.36) $ (.28) $ (1.33)
Net income (loss) per diluted share available to common stockholders (GAAP) ……..
$ $ $ .07 $
Loss on early extinguishment of debt..……………………..….…..…………………
Non-cash foreign currency (gains) losses..………………..…........……………….. $ (.03) $ (.01) $ $ .02
(Gain) on sale of assets / loss on sale of discontinued operations ………………. $ $ $ (.04) $
Litigation settlement…………………………...…………………………………….…. $ .09 $ .09
Curtailment gain-postretirement plans...……………………...……………………… $ (.02) $ (.02)
Tax matters………...…………………………...………………………………………. $ (.04) $ (.04)
Restructuring charges...……………………………………………………………..…. $ .02 $ .06 $ .10 $ .82
Adjusted net income (loss) per diluted share available to common stockholders
(exclusive of loss on early extinguishment of debt, non-cash foreign currency (gain)
loss, (gain) on sale of assets/loss on sale of discontinued operations, litigation
settlement, curtailment gain-postretirement plans, tax matters and restructuring
charges)........................................................................................................................ $ .08 $ (.28) $ (.15) $ (.46)
Adjusted net income (loss) per diluted share available to common stockholders (exclusive of loss on early
extinguishment of debt, non-cash foreign currency (gain) loss, (gain) on sale of assets/loss on sale of discontinued
operations, litigation settlement, curtailment gain-postretirement plans, tax matters and restructuring charges) is a
non-GAAP financial measure. See disclosure below regarding the use of non-GAAP financial measures.
10. SMURFIT-STONE CONTAINER CORPORATION
NON-GAAP FINANCIAL MEASURES
We measure our performance primarily through our operating profit. In addition to our audited consolidated financial
statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management uses certain
non-GAAP financial measures, including “EBITDA,” “adjusted EBITDA” and “adjusted net income (loss) per diluted share
available to common stockholders” to measure our operating performance. We provide a definition of the components of these
measurements and reconciliation to the most directly comparable GAAP financial measure.
These non-GAAP measures are considered by our Board of Directors and management as a basis for measuring and
evaluating our overall operating performance. They are presented to enhance an understanding of our operating results and
are not intended to represent cash flow or results of operations. The use of these non-GAAP measures provides an
indication of our ability to service debt and we consider them appropriate measures to use because of our highly leveraged
position. We believe these non-GAAP measures are useful in evaluating our operating performance compared to other
companies in our industry, and are beneficial to investors, potential investors and other key stakeholders, including analysts
and creditors who use these measures in their evaluations of our performance.
EBITDA has certain material limitations associated with its use as compared to net income. These limitations are primarily
due to the exclusion of certain amounts that are material to our consolidated results of operations, such as interest expense,
income tax expense and depreciation and amortization. In addition, EBITDA may differ from the EBITDA calculations of
other companies in our industry, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered a measure of discretionary cash available to us to invest in
our business and should be read in conjunction with our consolidated financial statements prepared in accordance with
GAAP. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and adjusted
EBITDA only as supplemental measures of our operating results. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for financial statements prepared in accordance with GAAP. The EBITDA
presentation includes a reconciliation to net income which we believe is clear and useful to our stakeholders. A further
reconciliation to adjusted EBITDA excludes certain unusual or non-recurring items, and presents a more accurate picture of
our operating performance.
We use adjusted EBITDA to provide meaningful supplemental information regarding our operating performance and
profitability by excluding from EBITDA certain unusual or nonrecurring items that we believe are not indicative of our ongoing
operating results as follows:
• Loss on Early Extinguishment of Debt – which represents unamortized deferred debt issuance cost or call premiums
charged to expense in connection with our financing activities.
• Non-Cash Foreign Currency Gain or Loss – which is recorded in connection with fluctuations in the Canadian dollar.
The functional currency for our Canadian operations is the U.S. dollar. Fluctuations in Canadian dollar-denominated
monetary assets and liabilities result in non-cash gains or losses.
• Gain or Loss on Sale of Assets – which occur on an infrequent basis.
• Receivables Discount Expense – which is recorded in connection with our accounts receivable securitization
program and is considered a financing activity similar to interest expense that is added back in our presentation of
adjusted EBITDA in a manner consistent with our interest expense.
• Restructuring Charges – which consist primarily of facility closures and other headcount reductions. A significant
amount of these restructuring charges are non-cash charges related to the write-down of property, plant and
equipment to estimated net realizable value. We exclude these restructuring charges to more clearly reflect our
ongoing operating performance.
• Litigation Settlements – which occur on an infrequent basis.
We also use the non-GAAP measure “adjusted net income (loss) per diluted share available to common stockholders.”
Management believes this non-GAAP financial measure provides investors, potential investors, security analysts and others
with useful information to evaluate the performance of the business because it excludes gains and losses and charges that
management believes are not indicative of the ongoing operating results of the business. In addition, this non-GAAP
financial measure is used by management to evaluate our operating performance for the same reasons as detailed above in
the description of the related components excluded from EBITDA to arrive at adjusted EBITDA.