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(Mark One) | ||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended September 30, 2010 | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware | 36-4277050 | |
(State or other Jurisdiction
of
Incorporation or Organization) |
(IRS Employer Identification No.) | |
1900 West Field Court
Lake Forest, Illinois (Address of Principal Executive Offices) |
60045
(Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
2
Item 1. | Financial Statements. |
September 30,
|
December 31,
|
|||||||
2010 | 2009 | |||||||
(In thousands, except share and per share amounts) | (Audited) | |||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 172,820 | $ | 260,727 | ||||
Accounts receivable, net of allowance for doubtful accounts and
customer deductions of $5,968 and $6,348 as of
September 30, 2010 and December 31, 2009, respectively
|
335,000 | 243,403 | ||||||
Inventories
|
226,731 | 213,396 | ||||||
Alternative fuel mixture tax credits receivable
|
— | 127,811 | ||||||
Federal and state income taxes receivable
|
— | 4,707 | ||||||
Prepaid expenses and other current assets
|
21,049 | 13,045 | ||||||
Deferred income taxes
|
57,417 | 22,125 | ||||||
Total current assets
|
813,017 | 885,214 | ||||||
Property, plant and equipment, net
|
1,291,555 | 1,182,504 | ||||||
Goodwill
|
38,854 | 38,854 | ||||||
Other intangible assets, net
|
11,179 | 11,790 | ||||||
Other long-term assets
|
35,427 | 34,478 | ||||||
Total assets
|
$ | 2,190,032 | $ | 2,152,840 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities:
|
||||||||
Short-term debt and current maturities of long-term debt
|
$ | 109,000 | $ | 109,000 | ||||
Capital lease obligations
|
659 | 626 | ||||||
Accounts payable
|
169,944 | 126,813 | ||||||
Dividends payable
|
15,432 | 15,451 | ||||||
Accrued interest
|
4,405 | 12,644 | ||||||
Accrued federal and state income taxes
|
15,544 | — | ||||||
Accrued liabilities
|
111,079 | 106,423 | ||||||
Total current liabilities
|
426,063 | 370,957 | ||||||
Long-term liabilities:
|
||||||||
Long-term debt
|
549,011 | 548,749 | ||||||
Capital lease obligations
|
22,004 | 22,503 | ||||||
Deferred income taxes
|
86,953 | 205,227 | ||||||
Pension and postretirement benefit plans
|
82,894 | 78,859 | ||||||
Other long-term liabilities
|
56,795 | 27,700 | ||||||
Total long-term liabilities
|
797,657 | 883,038 | ||||||
Stockholders’ equity:
|
||||||||
Common stock, par value $0.01 per share, 300,000,000 shares
authorized, 102,735,224 and 103,018,358 shares issued
as of September 30, 2010 and December 31, 2009,
respectively
|
1,027 | 1,030 | ||||||
Additional paid in capital
|
370,193 | 387,496 | ||||||
Retained earnings
|
650,565 | 546,355 | ||||||
Accumulated other comprehensive income (loss), net of tax:
|
||||||||
Unrealized gain (loss) on treasury locks, net
|
(15,887 | ) | 4,512 | |||||
Unrealized loss on foreign currency exchange contracts
|
(555 | ) | — | |||||
Unfunded employee benefit obligations
|
(37,865 | ) | (40,548 | ) | ||||
Total accumulated other comprehensive loss
|
(54,307 | ) | (36,036 | ) | ||||
Common stock held in treasury, at cost (50,000 shares as of
September 30, 2010)
|
(1,166 | ) | — | |||||
Total stockholders’ equity
|
966,312 | 898,845 | ||||||
Total liabilities and stockholders’ equity
|
$ | 2,190,032 | $ | 2,152,840 | ||||
3
Three Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands, except per share amounts) | ||||||||
Net sales
|
$ | 642,764 | $ | 553,573 | ||||
Cost of sales
|
(476,312 | ) | (443,041 | ) | ||||
Gross profit
|
166,452 | 110,532 | ||||||
Selling and administrative expenses
|
(47,219 | ) | (44,258 | ) | ||||
Corporate overhead
|
(15,527 | ) | (13,188 | ) | ||||
Alternative fuel mixture tax credits
|
(111,869 | ) | 47,137 | |||||
Other expense, net
|
(4,179 | ) | (3,892 | ) | ||||
Income (loss) from operations
|
(12,342 | ) | 96,331 | |||||
Interest expense, net
|
(7,903 | ) | (8,961 | ) | ||||
Income (loss) before taxes
|
(20,245 | ) | 87,370 | |||||
Benefit (provision) for income taxes
|
113,565 | (14,715 | ) | |||||
Net income
|
$ | 93,320 | $ | 72,655 | ||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
101,776 | 101,713 | ||||||
Diluted
|
102,687 | 102,536 | ||||||
Net income per common share:
|
||||||||
Basic
|
$ | 0.92 | $ | 0.71 | ||||
Diluted
|
$ | 0.91 | $ | 0.71 | ||||
Dividends declared per common share
|
$ | 0.15 | $ | 0.15 | ||||
4
Nine Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands, except per share amounts) | ||||||||
Net sales
|
$ | 1,808,955 | $ | 1,615,332 | ||||
Cost of sales
|
(1,424,039 | ) | (1,276,293 | ) | ||||
Gross profit
|
384,916 | 339,039 | ||||||
Selling and administrative expenses
|
(136,149 | ) | (130,325 | ) | ||||
Corporate overhead
|
(43,543 | ) | (42,076 | ) | ||||
Alternative fuel mixture tax credits
|
(102,634 | ) | 126,832 | |||||
Other expense, net
|
(13,570 | ) | (11,815 | ) | ||||
Income from operations
|
89,020 | 281,655 | ||||||
Interest expense, net
|
(24,719 | ) | (26,529 | ) | ||||
Income before taxes
|
64,301 | 255,126 | ||||||
Benefit (provision) for income taxes
|
86,243 | (47,914 | ) | |||||
Net income
|
$ | 150,544 | $ | 207,212 | ||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
101,912 | 101,516 | ||||||
Diluted
|
102,822 | 102,275 | ||||||
Net income per common share:
|
||||||||
Basic
|
$ | 1.48 | $ | 2.04 | ||||
Diluted
|
$ | 1.46 | $ | 2.03 | ||||
Dividends declared per common share
|
$ | 0.45 | $ | 0.45 | ||||
5
Nine Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$ | 150,544 | $ | 207,212 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities:
|
||||||||
Depreciation, depletion and amortization
|
116,770 | 111,900 | ||||||
Amortization of financing costs
|
496 | 580 | ||||||
Amortization of net gain on treasury lock
|
(1,384 | ) | (1,385 | ) | ||||
Share-based compensation expense
|
5,403 | 6,021 | ||||||
Deferred income tax provision
|
(8,902 | ) | (4,340 | ) | ||||
Loss on disposals of property, plant and equipment
|
4,634 | 4,590 | ||||||
Alternative energy tax credits
|
13,875 | (106,381 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Increase in assets —
|
||||||||
Accounts receivable
|
(92,095 | ) | (16,946 | ) | ||||
Inventories
|
(13,335 | ) | (838 | ) | ||||
Prepaid expenses and other current assets
|
(8,053 | ) | (7,290 | ) | ||||
Increase (decrease) in liabilities —
|
||||||||
Accounts payable
|
39,713 | 12,396 | ||||||
Accrued liabilities
|
(6,761 | ) | 13,792 | |||||
Other, net
|
10,136 | (10,018 | ) | |||||
Net cash provided by operating activities
|
211,041 | 209,293 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment
|
(230,926 | ) | (68,600 | ) | ||||
Additions to other long term assets
|
(2,119 | ) | (1,941 | ) | ||||
Acquisition of business, net of cash acquired
|
— | (3,136 | ) | |||||
Proceeds from disposals of property, plant and equipment
|
1,353 | 28 | ||||||
Net cash used for investing activities
|
(231,692 | ) | (73,649 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Payments on long-term debt
|
(465 | ) | (457 | ) | ||||
Common stock dividends paid
|
(46,366 | ) | (61,456 | ) | ||||
Repurchases of common stock
|
(24,801 | ) | — | |||||
Proceeds from exercise of stock options
|
3,508 | 910 | ||||||
Excess tax benefits from share-based awards
|
868 | 249 | ||||||
Net cash used for financing activities
|
(67,256 | ) | (60,754 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
(87,907 | ) | 74,890 | |||||
Cash and cash equivalents, beginning of period
|
260,727 | 149,397 | ||||||
Cash and cash equivalents, end of period
|
$ | 172,820 | $ | 224,287 | ||||
6
1. | Basis of Presentation |
2. | Summary of Accounting Policies |
7
2. | Summary of Accounting Policies (Continued) |
3. | Earnings Per Share |
Three Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands, except per share data) | ||||||||
Numerator:
|
||||||||
Net income
|
$ | 93,320 | $ | 72,655 | ||||
Denominator:
|
||||||||
Basic common shares outstanding
|
101,776 | 101,713 | ||||||
Effect of dilutive securities:
|
||||||||
Stock options
|
222 | 119 | ||||||
Unvested restricted stock
|
689 | 704 | ||||||
Dilutive common shares outstanding
|
102,687 | 102,536 | ||||||
Basic income per common share
|
$ | 0.92 | $ | 0.71 | ||||
Diluted income per common share
|
$ | 0.91 | $ | 0.71 |
8
3. | Earnings Per Share (Continued) |
Nine Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands, except per share data) | ||||||||
Numerator:
|
||||||||
Net income
|
$ | 150,544 | $ | 207,212 | ||||
Denominator:
|
||||||||
Basic common shares outstanding
|
101,912 | 101,516 | ||||||
Effect of dilutive securities:
|
||||||||
Stock options
|
243 | 69 | ||||||
Unvested restricted stock
|
667 | 690 | ||||||
Dilutive common shares outstanding
|
102,822 | 102,275 | ||||||
Basic income per common share
|
$ | 1.48 | $ | 2.04 | ||||
Diluted income per common share
|
$ | 1.46 | $ | 2.03 |
4. | Comprehensive Income |
Three Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Net income
|
$ | 93,320 | $ | 72,655 | ||||
Other comprehensive income, net of tax:
|
||||||||
Amortization of unfunded employee benefit obligations
|
894 | 858 | ||||||
Amortization of net gain on treasury locks
|
(282 | ) | (462 | ) | ||||
Unrealized losses on treasury locks
|
(11,101 | ) | — | |||||
Unrealized gains on foreign currency exchange contracts
|
370 | — | ||||||
Comprehensive income
|
$ | 83,201 | $ | 73,051 | ||||
9
4. | Comprehensive Income (Continued) |
Nine Months Ended
|
||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Net income
|
$ | 150,544 | $ | 207,212 | ||||
Other comprehensive income, net of tax:
|
||||||||
Amortization of unfunded employee benefit obligations
|
2,683 | 2,576 | ||||||
Amortization of net gain on treasury locks
|
(1,025 | ) | (1,385 | ) | ||||
Unrealized losses on treasury locks
|
(19,374 | ) | — | |||||
Unrealized losses on foreign currency exchange contracts
|
(555 | ) | — | |||||
Other
|
— | (125 | ) | |||||
Comprehensive income
|
$ | 132,273 | $ | 208,278 | ||||
5. | Stock-Based Compensation |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
Stock options
|
$ | — | $ | 210 | $ | 221 | $ | 576 | ||||||||
Restricted stock
|
1,615 | 1,300 | 5,182 | 5,445 | ||||||||||||
Impact on income before income taxes
|
1,615 | 1,510 | 5,403 | 6,021 | ||||||||||||
Income tax benefit
|
(630 | ) | (588 | ) | (2,105 | ) | (2,340 | ) | ||||||||
Impact on net income
|
$ | 985 | $ | 922 | $ | 3,298 | $ | 3,681 | ||||||||
10
5. | Stock-Based Compensation (Continued) |
Weighted-
|
||||||||||||||||
Weighted-
|
Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||||
Options | Price | Term (years) | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at December 31, 2009
|
1,973,301 | $ | 20.92 | |||||||||||||
Exercised
|
(204,421 | ) | 17.16 | |||||||||||||
Forfeited
|
(7,374 | ) | 24.93 | |||||||||||||
Outstanding and exercisable at September 30, 2010
|
1,761,506 | $ | 21.34 | 2.57 | $ | 4,053 | ||||||||||
2010 | 2009 | |||||||||||||||
Fair Market
|
Fair Market
|
|||||||||||||||
Value at
|
Value at
|
|||||||||||||||
Date of
|
Date of
|
|||||||||||||||
(Dollars in thousands) | Shares | Grant | Shares | Grant | ||||||||||||
Restricted stock at January 1
|
1,235,505 | $ | 24,718 | 1,038,270 | $ | 23,023 | ||||||||||
Granted
|
573,440 | 12,693 | 444,985 | 6,995 | ||||||||||||
Vested
|
(318,350 | ) | (6,563 | ) | (234,930 | ) | (5,025 | ) | ||||||||
Cancellations
|
(12,595 | ) | (248 | ) | (12,210 | ) | (261 | ) | ||||||||
Restricted stock at September 30
|
1,478,000 | $ | 30,600 | 1,236,115 | $ | 24,732 | ||||||||||
11
6. | Inventories |
September 30,
|
December 31,
|
|||||||
2010 | 2009 | |||||||
(In thousands) | (Audited) | |||||||
Raw materials
|
$ | 113,207 | $ | 101,429 | ||||
Work in process
|
6,943 | 6,600 | ||||||
Finished goods
|
69,167 | 66,994 | ||||||
Supplies and materials
|
100,935 | 100,919 | ||||||
Inventories at FIFO or average cost
|
290,252 | 275,942 | ||||||
Excess of FIFO or average cost over LIFO cost
|
(63,521 | ) | (62,546 | ) | ||||
Inventories, net
|
$ | 226,731 | $ | 213,396 | ||||
7. | Other Intangible Assets |
As of September 30, 2010 | As of December 31, 2009 | |||||||||||||||||||
Weighted
|
Gross
|
Gross
|
||||||||||||||||||
Average
|
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
||||||||||||||||
Remaining Life | Amount | Amortization | Amount | Amortization | ||||||||||||||||
(In thousands) | (Audited) | |||||||||||||||||||
Customer lists and relations
|
31.5 years | $ | 17,441 | $ | 6,262 | $ | 17,441 | $ | 5,651 |
8. | Employee Benefit Plans and Other Postretirement Benefits |
Three Months
|
Nine Months
|
|||||||||||||||
Ended
|
Ended
|
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
Components of Net Pension Costs
|
||||||||||||||||
Service cost for benefits earned during the year
|
$ | 4,579 | $ | 4,489 | $ | 13,737 | $ | 13,466 | ||||||||
Interest cost on accumulated benefit obligation
|
3,023 | 2,524 | 9,068 | 7,685 | ||||||||||||
Expected return on assets
|
(2,802 | ) | (2,143 | ) | (8,406 | ) | (6,429 | ) | ||||||||
Net amortization of unrecognized amounts
|
1,483 | 1,426 | 4,449 | 4,279 | ||||||||||||
Other
|
— | — | — | (126 | ) | |||||||||||
Net pension costs
|
$ | 6,283 | $ | 6,296 | $ | 18,848 | $ | 18,875 | ||||||||
12
8. | Employee Benefit Plans and Other Postretirement Benefits (Continued) |
Three Months
|
Nine Months
|
|||||||||||||||
Ended
|
Ended
|
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
Components of Net Postretirement Costs
|
||||||||||||||||
Service cost for benefits earned during the year
|
$ | 350 | $ | 335 | $ | 1,049 | $ | 1,005 | ||||||||
Interest cost on accumulated benefit obligation
|
283 | 256 | 848 | 768 | ||||||||||||
Net amortization of unrecognized amounts
|
(19 | ) | (22 | ) | (56 | ) | (66 | ) | ||||||||
Net postretirement costs
|
$ | 614 | $ | 569 | $ | 1,841 | $ | 1,707 | ||||||||
9. | Transfers of Financial Assets |
10. | Derivative Instruments and Hedging Activities |
13
10. | Derivative Instruments and Hedging Activities (Continued) |
14
10. | Derivative Instruments and Hedging Activities (Continued) |
Amount of
|
||||||||||||||||
Net Gain (Loss)
|
Amount of Gain (Loss) Reclassified
|
|||||||||||||||
Recognized
|
from Accumulated OCI into Income
|
|||||||||||||||
in OCI
|
(Effective Portion) | |||||||||||||||
(Effective Portion)
|
Three Months
|
Nine Months
|
||||||||||||||
September 30,
|
Ended
|
Ended
|
||||||||||||||
2010 | Location | Sept. 30, 2010 | Sept. 30, 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Treasury locks, net of tax
|
$ | (15,887 | ) | Interest expense, net | $ | 461 | $ | 1,384 | ||||||||
Foreign currency exchange contracts, net of tax
|
(555 | ) | Cost of sales | — | — | |||||||||||
Total
|
$ | (16,442 | ) | Total | $ | 461 | $ | 1,384 | ||||||||
11. | Financial Instruments |
September 30, 2010 | December 31, 2009 | |||||||||||||||
Carrying
|
Carrying
|
|||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(In thousands) | (Audited) | |||||||||||||||
Cash and cash equivalents
|
$ | 172,820 | $ | 172,820 | $ | 260,727 | $ | 260,727 | ||||||||
Long-term debt —
|
||||||||||||||||
5.75% senior notes
|
(399,057 | ) | (437,576 | ) | (398,800 | ) | (427,000 | ) | ||||||||
6.50% senior notes
|
(149,954 | ) | (172,219 | ) | (149,949 | ) | (163,500 | ) | ||||||||
Receivables credit facility
|
(109,000 | ) | (109,000 | ) | (109,000 | ) | (109,000 | ) | ||||||||
Capital lease obligations
|
(22,663 | ) | (22,663 | ) | (23,129 | ) | (23,129 | ) |
15
11. | Financial Instruments (Continued) |
12. | Fair Value Measurements |
As of September 30, 2010 | ||||||||||||||||||||||||
Measurement
|
||||||||||||||||||||||||
Approach | As of December 31, 2009 | |||||||||||||||||||||||
Carrying
|
Fair
|
Valuation
|
Carrying
|
Fair
|
||||||||||||||||||||
Value | Value | Level | Technique | Value | Value | |||||||||||||||||||
(In thousands) | (Audited) | |||||||||||||||||||||||
Current Assets
|
||||||||||||||||||||||||
Money market funds
|
$ | 172,321 | $ | 172,321 | 1 | (a | ) | $ | 260,230 | $ | 260,230 | |||||||||||||
Foreign currency exchange contracts
|
9 | 9 | 2 | (a | ) | — | — | |||||||||||||||||
Long-Term Liabilities
|
||||||||||||||||||||||||
Treasury locks
|
29,150 | 29,150 | 2 | (a | ) | — | — |
16
13. | Environmental Liabilities |
14. | Stock Repurchase Program |
15. | Alternative Energy Tax Credits |
17
15. | Alternative Energy Tax Credits (Continued) |
16. | Legal Proceedings |
17. | Subsequent Events |
18
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | containerboard and corrugated products demand; | |
• | corrugated products and containerboard pricing and mix; | |
• | cost trends and volatility for our major costs, including wood and recycled fiber, purchased fuels, electricity, labor and fringe benefits, and transportation costs; and | |
• | cash flow from operations and capital expenditures. |
19
Three Months Ended
|
||||||||||||
September 30, | ||||||||||||
2010 | 2009 | Change | ||||||||||
(In thousands) | ||||||||||||
Net sales
|
$ | 642,764 | $ | 553,573 | $ | 89,191 | ||||||
Income (loss) from operations
|
$ | (12,342 | ) (1) | $ | 96,331 | $ | (108,673 | ) | ||||
Interest expense, net
|
(7,903 | ) | (8,961 | ) | 1,058 | |||||||
Income before taxes
|
(20,245 | ) | 87,370 | (107,615 | ) | |||||||
Benefit (provision) for income taxes
|
113,565 | (14,715 | ) | 128,280 | ||||||||
Net income
|
$ | 93,320 | $ | 72,655 | $ | 20,665 | ||||||
(1) | Includes charge of $111.9 million due to reversal of a portion of income previously recorded from alternative fuel mixture credits in order to claim the cellulosic biofuel producer credits that are recorded as a benefit in the provision for income taxes. |
20
21
For the Nine Months Ended
|
||||||||||||
September 30, | ||||||||||||
2010 | 2009 | Change | ||||||||||
(In thousands) | ||||||||||||
Net sales
|
$ | 1,808,955 | $ | 1,615,332 | $ | 193,623 | ||||||
Income from operations
|
$ | 89,020 | (1) | $ | 281,655 | $ | (192,635 | ) | ||||
Interest expense, net
|
(24,719 | ) | (26,529 | ) | 1,810 | |||||||
Income before taxes
|
64,301 | 255,126 | (190,825 | ) | ||||||||
Benefit (provision) for income taxes
|
86,243 | (47,914 | ) | 134,157 | ||||||||
Net income
|
$ | 150,544 | $ | 207,212 | $ | (56,668 | ) | |||||
(1) | Includes charge of $111.9 million due to reversal of a portion of income previously recorded from alternative fuel mixture credits in order to claim the cellulosic biofuel producer credits that are recorded as a benefit in the provision for income taxes. |
22
Nine Months Ended
|
||||||||||||
September 30, | ||||||||||||
2010 | 2009 | Change | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by (used for):
|
||||||||||||
Operating activities
|
$ | 211,041 | $ | 209,293 | $ | 1,748 | ||||||
Investing activities
|
(231,692 | ) | (73,649 | ) | (158,043 | ) | ||||||
Financing activities
|
(67,256 | ) | (60,754 | ) | (6,502 | ) | ||||||
Net (decrease) increase in cash and cash equivalents
|
$ | (87,907 | ) | $ | 74,890 | $ | (162,797 | ) | ||||
23
Projected
|
||||||||||||
Balance at
|
Weighted
|
Annual
|
||||||||||
Sept. 30,
|
Average
|
Cash Interest
|
||||||||||
Borrowing Arrangement | 2010 | Interest Rate | Payments | |||||||||
(In thousands) | ||||||||||||
Revolving Credit Facility
|
$ | — | N/A | N/A | ||||||||
Receivables Credit Facility
|
109,000 | 1.56 | % | $ | 1,700 | |||||||
5
3
/
4
% Senior
Notes (due August 1, 2013)
|
400,000 | 5.75 | 23,000 | |||||||||
6
1
/
2
% Senior
Notes (due March 15, 2018)
|
150,000 | 6.50 | 9,750 | |||||||||
Total
|
$ | 659,000 | 5.23 | % | $ | 34,450 | ||||||
• | enter into sale and leaseback transactions, |
24
• | incur liens, | |
• | incur indebtedness at the subsidiary level, | |
• | enter into certain transactions with affiliates, or | |
• | merge or consolidate with any other person or sell or otherwise dispose of all or substantially all of the assets of PCA. |
Three Months Ended September 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
(In thousands except per share amounts) | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||
As reported in accordance with GAAP
|
$ | 93,320 | $ | 0.91 | $ | 72,655 | $ | 0.71 | ||||||||
Special items:
|
||||||||||||||||
Alternative energy tax credits
|
(33,429 | ) | (0.33 | ) | (47,306 | ) | (0.46 | ) | ||||||||
Asset disposal and facilities closure charges
|
1,792 | 0.02 | — | — | ||||||||||||
Total special items
|
(31,637 | ) | (0.31 | ) | (47,306 | ) | (0.46 | ) | ||||||||
Excluding special items
|
$ | 61,683 | $ | 0.60 | $ | 25,349 | $ | 0.25 | ||||||||
25
Nine Months Ended September 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
(In thousands except per share amounts) | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||
As reported in accordance with GAAP
|
$ | 150,544 | $ | 1.46 | $ | 207,212 | $ | 2.03 | ||||||||
Special items:
|
||||||||||||||||
Alternative energy tax credits
|
(42,664 | ) | (0.41 | ) | (127,545 | ) | (1.25 | ) | ||||||||
Asset disposal and facilities closure charges
|
5,384 | 0.05 | — | — | ||||||||||||
Total special items
|
(37,280 | ) | (0.36 | ) | (127,545 | ) | (1.25 | ) | ||||||||
Excluding special items
|
$ | 113,264 | $ | 1.10 | $ | 79,667 | $ | 0.78 | ||||||||
• | Resource Conservation and Recovery Act (RCRA); | |
• | Clean Water Act (CWA); | |
• | Clean Air Act (CAA); | |
• | The Emergency Planning and Community Right-to-Know-Act (EPCRA); | |
• | Toxic Substance Control Act (TSCA); and | |
• | Safe Drinking Water Act (SDWA). |
26
• | the impact of general economic conditions; | |
• | containerboard and corrugated products general industry conditions, including competition, product demand and product pricing; | |
• | fluctuations in wood fiber and recycled fiber costs; | |
• | fluctuations in purchased energy costs; | |
• | the possibility of unplanned outages or interruptions at our principal facilities; and | |
• | legislative or regulatory actions or requirements, particularly concerning environmental or tax matters. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
27
Item 4. | Controls and Procedures. |
28
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Approximate
|
||||||||||||||||
Total Number
|
Dollar Value
|
|||||||||||||||
of Shares
|
of Shares that
|
|||||||||||||||
Purchased as
|
may yet be
|
|||||||||||||||
Total Number
|
Average
|
Part of Publicly
|
Purchased Under
|
|||||||||||||
of Shares
|
Price Paid
|
Announced
|
the Plan or
|
|||||||||||||
Period | Purchased | per Share | Plans or Programs | Program | ||||||||||||
(In thousands) | ||||||||||||||||
July 1, 2010 to July 31, 2010
|
185,900 | $ | 23.95 | 185,900 | $ | 57,410 | ||||||||||
August 1, 2010 to August 31, 2010
|
562,500 | 22.74 | 562,500 | 44,620 | ||||||||||||
September 1, 2010 to September 30, 2010
|
345,992 | 22.73 | 345,992 | 36,755 | ||||||||||||
Total
|
1,094,392 | $ | 22.94 | 1,094,392 | $ | 36,755 | ||||||||||
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Not Used. |
Item 5. | Other Information. |
29
Item 6. | Exhibits. |
10 | .1 | Five Year Credit Agreement, dated as of April 15, 2008, by and among PCA and the lenders and agents named therein.(1) | ||
10 | .2 | Amended and Restated Credit and Security Agreement, dated as of September 19, 2008, by and among PCA and the lenders and agents named therein.(2) | ||
31 | .1 | Certification of Chief Executive Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
31 | .2 | Certification of Chief Financial Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
32 | .1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
32 | .2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101 | The following financial information from Packaging Corporation of America’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at September 30, 2010 and December 31, 2009, (ii) Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2010 and 2009, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009, and (iv) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. |
(1) | This exhibit was originally filed on April 18, 2008 and is being re-filed to include all exhibits and schedules thereto. | |
(2) | This exhibit was originally filed on September 25, 2008 and is being re-filed to include all exhibits and schedules thereto. |
30
By: |
/s/
Mark
W. Kowlzan
|
By: |
/s/
Richard
B. West
|
31
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|