Pope Talbot (NYSE:POP)
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Pope & Talbot, Inc. (NYSE:POP) today reported a net loss of $42.9
million for the second quarter of 2007 compared with a net loss of $21.8
million for the same quarter of 2006 and $18.6 million for the first
quarter of 2007. The net loss for the second quarter of 2007 was $2.62
per share on 16.4 million shares, compared with a net loss of $1.35 per
share on 16.2 million shares for the second quarter of 2006 and a net
loss of $1.15 per share on 16.3 million shares for the first quarter of
2007. Revenues were $236.5 million for the second quarter compared with
$213.6 million for the second quarter of 2006 and $200.5 million for the
first quarter of 2007. As a result of the Company’s
adoption of an accounting pronouncement for planned major maintenance
activities issued in the latter part of 2006, the second quarter 2006
net loss is $7.3 million more than the amount previously reported.
The Company’s operating performance
significantly declined in the second quarter of 2007 compared to both
the second quarter of 2006 and the first quarter of 2007. In the second
quarter of 2007, the Company’s operating loss
was $30.3 million and earnings before interest, taxes, depreciation and
amortization (EBITDA) was negative $17.7 million, as compared with an
operating loss of $10.5 million and negative EBITDA of $0.2 million for
the same quarter of 2006. For the first quarter of 2007, operating loss
was $14.7 million and EBITDA was negative $4.4 million. Higher pulp raw
material, manufacturing costs and maintenance costs, combined with the
negative impact of a strengthening Canadian dollar relative to the U.S.
dollar offset improved pulp market prices and increased pulp shipments
in the second quarter of 2007 as compared to the prior periods. The
strengthening Canadian currency also impacted wood products costs, which
were also higher than the prior periods as a result of increased
shipments. Lumber prices, while improving from the first quarter of 2007
levels, continued to reflect depressed lumber market conditions.
As announced August 6, 2007, the Company is in default of its senior
secured credit agreement as a result of its inability to maintain
compliance with one financial covenant calculated as of June 30, 2007.
The Company and its senior lenders entered into a forbearance agreement
pursuant to which its senior lenders have agreed that until September
17, 2007, or the earlier of another default they will forbear from
exercising any rights or remedies they may have under the credit
agreement arising from the existing default (including their right to
declare all amounts outstanding as immediately due and payable), and
will permit the Company to continue to borrow under the revolving credit
facility, on a reduced basis, subject to all other terms and conditions
of the credit agreement. See discussion below in “Capital
and Liquidity.”
The covenant required that the Company generate EBITDA, as defined, of
at least $30 million for the four-quarter period ended June 30, 2007;
however, the Company generated EBITDA of $4.0 million for this period,
including negative EBITDA of $24.8 million in the second quarter of
2007. Although the Company may seek further forbearance or other relief
from its senior lenders when the current forbearance expires, it cannot
provide any assurance that such forbearance or other relief will be
provided. Even if the Company is successful in obtaining additional
covenant relief, the Company will continue to be challenged in its
ability to maintain adequate levels of liquidity relative to the size of
its operations. Accordingly, the Company is continuing to explore
alternatives to strengthen its balance sheet and generate cash,
including one or more possible asset sales or other capital infusions,
and is analyzing its ability to restructure its debt and other
liabilities, including, if necessary, through bankruptcy proceedings. In
addition, the Forbearance Agreement requires the Company during the
six-week forbearance period to solicit offers to purchase all or
substantially all of the Company’s assets or
equity interests. The Company has engaged Rothschild Inc. to assist in
all those efforts.
“The unfavorable movement of the Canadian
dollar and a scarcity of affordable fiber resources have combined to
tighten our liquidity and severely impact earnings,”
said Harold Stanton, President and Chief Executive Officer. “While
these factors are largely out of our control, we cannot maintain the
status quo and expect to withstand this current market environment. We
are actively taking steps to improve our liquidity. As previously
announced, we are curtailing one of three production lines at our
Nanaimo pulp mill to reduce operating costs and conserve fiber in light
of current market conditions. We are managing working capital by
reducing inventories to minimal levels and optimizing cash conversion
between our collections and payables. We have initiated actions to
reduce non-employee administrative expenses throughout the Company and
have implemented a salary and new hire freeze for all staff and salaried
positions. Additionally, we have closed our Corporate flight department
and have sold the Company airplane. As we investigate longer-term
capital and financing alternatives, I am hopeful that our current
lenders will be supportive of our efforts and will grant us a prudent
timeframe to execute an appropriate strategy.”
Selected Statistics
First
Six months
Second Quarter
Quarter
ended June 30,
2007
2006
2007
2007
2006
Sales Volumes:
Pulp (metric tons)
202,000
200,000
174,500
376,500
407,100
Lumber (thousand board feet)
248,000
225,800
209,100
457,100
469,800
Production Volumes:
Pulp (metric tons)
177,100
189,900
182,800
359,900
399,600
Lumber (thousand board feet)
201,200
212,200
239,200
440,400
465,300
Average Price Realizations:(A)
Pulp (metric tons)
$683
$579
$657
$671
$557
Lumber (thousand board feet)
$331
$392
$320
$326
$400
Notes:
(A) Gross invoice price less trade discounts.
Pulp
Pope & Talbot’s second quarter revenues
for Pulp increased 19 percent to $137.9 million, compared with the same
period a year ago primarily due to an increase in average price realized
and increased 20 percent compared with the first quarter of 2007
primarily due to an increase in shipments as well as an increase in
average price realized. Shipments for the second and first quarters of
2007 were 202,000 metric tons and 174,500 metric tons, respectively.
Shipments in the second quarter of 2007 returned to more normal levels
from abnormally low levels in the first quarter, which were primarily a
result of production constraints imposed by fiber availability and
transportation delays caused by a Canadian National Railway strike.
Pulp generated an operating loss of $16.4 million for the second quarter
of 2007, as compared with losses of $2.3 million and $1.7 million for
the second quarter of 2006 and the first quarter of 2007, respectively.
EBITDA for the second quarter of 2007 decreased to negative EBITDA of
$9.5 million from positive EBITDA of $4.6 million and $5.0 million for
the second quarter of 2006 and the first quarter of 2007, respectively.
The reduction in the contribution from the second quarter of 2006 to the
same quarter of 2007 was primarily due to a significant increase in
fiber costs due to fiber availability and quality issues, reduced
production caused by scheduled and unscheduled maintenance shutdowns and
the effect on the operating costs incurred at the Company’s
Canadian pulp mills due to the strengthening of the Canadian dollar
relative to the U.S. dollar, partially offset by an increase in pulp
revenues. The contribution as compared with the previous quarter was
reduced primarily due to the increase in maintenance costs and the
effect of the Canadian dollar relative to U.S. dollar, partially offset
by the increase in pulp revenues. During the second quarter, the Nanaimo
pulp mill performed its annual maintenance shutdown and incurred costs
of approximately $12 million, an increase of approximately $9 million
over the cost incurred in the first quarter of 2007 for the planned
maintenance shutdown of the Halsey pulp mill in that quarter. Compared
with the first quarter of 2007, the Company estimates that the increase
in the average daily Canadian to U.S. dollar exchange rate increased
second quarter 2007 pulp cost of sales approximately $7.0 million.
Excluding the effect of the stronger Canadian dollar and the increase in
maintenance shutdown costs, the average cost per ton of pulp sold was 4
percent higher in the second quarter of 2007 compared with the first
quarter of 2007.
The steady decline of lumber prices in 2006 and lack of sufficient price
recovery in 2007 has caused some sawmills located in both the U.S. and
Canada to cease or reduce production. This decline has severely
constrained the availability and quality of wood chip supply. As a
result, the Company has expanded its geographic harvesting and sourcing
areas and its supply chain to include wood chips and sawdust that may
have a chemical composition dissimilar to the Company’s
historic supply of fiber. This shift in the characteristics has caused
the Company to incur increased production costs to alter its
manufacturing process while maintaining its pulp quality. The Company
has experienced a substantial increase in its fiber and production costs
beginning in the fourth quarter of 2006 and continuing into the second
quarter of 2007. The on-going supply imbalance is expected to impact the
remainder of 2007.
Pulp production totaled 177,100 metric tons in the second quarter of
2007, compared with 189,900 and 182,800 metric tons in the second
quarter of 2006 and the first quarter of 2007, respectively. The Company’s
Nanaimo pulp mill took 18 days and 17 days of downtime associated with
its planned maintenance outage in its second quarter of 2007 and 2006,
respectively. Quarterly production was reduced by approximately 16,800
metric tons in 2007 and 20,000 metric tons in 2006 related to this
downtime. In April 2007, the Company’s
Mackenzie pulp mill experienced a mechanical failure in its Kamyr
digester which caused a production shutdown for that mill of 14 days,
reducing second quarter production by approximately 9,400 metric tons.
Wood Products
Pope & Talbot’s second quarter revenues
for Wood Products of $98.6 million increased one percent from the same
period a year ago. The increase from the second quarter of 2006 resulted
from increased lumber sales volumes and increased by-product revenues
partially offset by lower sales prices. Shipments for the second quarter
increased 10 percent to 248.0 million board feet from 225.8 million in
the second quarter of 2006. Average lumber prices decreased 16 percent
to $331 per thousand board feet from $392 per thousand board feet for
the second quarter of 2006. Wood Products revenues for the quarter
increased by 15 percent compared with the first quarter of 2007,
primarily due to an increase in shipments of 19 percent up from 209.1
million board feet, partially offset by decreased by-product revenues.
Lumber sales prices for the second quarter of 2007 increased slightly
from the first quarter, up 3 percent, but generally continue to reflect
depressed lumber market conditions.
Wood Products generated an operating loss of $7.8 million in both the
second and first quarters of 2007, compared with an operating loss of
$3.3 million in the second quarter of 2006. EBITDA from Wood Products
was a negative $4.4 million in the second quarter of 2007, compared with
EBITDA of $44,000 in the second quarter of 2006 and negative EBITDA of
$4.5 million in the first quarter of 2007. The reduction in contribution
from a year ago was primarily due to a decrease in average sales price
realized caused by the slump in demand for lumber products.
Since October 12, 2006, the Company’s lumber
shipments to the United States have been subject to a 15% export tax.
The benchmark Prevailing Monthly Price, as established by an average of
the Random Lengths Framing Lumber Composite Index, has been below $315
for the entire period of the export tax.
Lumber production totaled 201.2 million board feet in the second quarter
of 2007, compared with 212.2 million board feet in the same quarter of
2006 and 239.2 million board feet in the first quarter of 2007. The
decrease in production as compared with the second quarter of 2006 was
primarily due to reduced production at the Company’s
Grand Forks and Fort St. James sawmills as a result of market-related
production curtailments taken by both mills in the second quarter of
2007, offset by production at the Company’s
Midway mill which did not operate in the second quarter of 2006. The
decrease in production as compared with the first quarter of 2007
primarily resulted from market related production curtailments in the
second quarter of 2007 at Midway, Grand Forks and Fort St. James.
Selling, General & Administrative
SG&A expenses for the second quarter of 2007 totaled $10.2 million
compared with $9.3 million in the same period of 2006 and $9.5 million
in the first quarter of 2007. SG&A expenses in the second quarter of
2007 were $0.9 million higher than the same period a year ago, primarily
due to an increase of $0.7 million in costs associated with financial
consultants, legal and other professional services, an increase of $0.3
million in equity compensation expense and an increase of $0.2 million
in sales commissions, offset by a reduction in costs of $0.3 million
associated with a sales tax audit in 2006. SG&A expenses increased $0.7
million compared with the first quarter of 2007, due to similar factors
as discussed above except offset by a decrease of $0.5 million in audit
fees and a decrease of $0.2 million associated with uninsured losses
that occurred in the first quarter.
Capital and Liquidity
At June 30, 2007, total debt was $354.9 million, an increase of $33.9
million from $321.0 million at December 31, 2006. Total stockholders’
equity decreased by $39.6 million in the first six months of 2007
primarily due to a net loss, partially offset by an increase in
accumulated other comprehensive income. At June 30, 2007, the ratio of
long-term debt to total capitalization was 81 percent, up from 73
percent at December 31, 2006.
At June 30, 2007, the Company was utilizing $34.1 million of its
revolving facility for cash borrowings and $16.7 million for letters of
credit. At July 31, 2007, cash borrowing under the revolving credit
facility had increased to $44.4 million primarily due to payment of
approximately $8 million in annual Canadian property taxes due in July.
Under the Forbearance Agreement with our senior lenders, the revolving
facility has been reduced to $67.0 million, with maximum limits of $50.0
million and $17.0 million for cash borrowings and letters of credit,
respectively. As a result of the unwaived default, the Company has
classified all outstanding cash borrowings under the revolving facility
and the term loans under its credit agreement as current liabilities at
June 30, 2007.
Cash requirements in the first six months of 2007 included an increase
in net working capital of $6.4 million and $11.4 million for capital
expenditures. In the second quarter of 2007, Pope & Talbot’s
capital expenditures were $6.2 million and depreciation and amortization
totaled $10.4 million.
This press announcement and other Company communications may contain
statements relating to future performance of the Company that are
forward-looking statements. These statements relate to the Company’s
future plans, objectives, expectations and intentions and may be
identified by words like “believe,”
“expect,” “may,”
“will,” “should,”
“seek,” or “anticipate,”
and similar expressions. The Company cautions readers that any such
forward-looking statements are based on assumptions that the Company
believes are reasonable, but are subject to a wide range of risks
including, but not limited to, risks associated with future financial
results and liquidity including the Company’s
continued ability to finance its operation in the normal course, the
continuation of the forbearance agreement without the occurrence of a
termination event thereunder or the potential necessity for additional
forbearance agreements, the possibility that the Company may need to
commence bankruptcy proceedings, fluctuation of the borrowing base and
other limitations that may affect the Company’s
ability to borrow under its revolving credit facilities or otherwise,
the Company’s relationship with and payment
terms provided by its trade creditors, additional financing
requirements, the results of renegotiating certain key commercial
agreements, the effect of commodity and raw material prices, foreign
currency fluctuations, the effect of U.S. housing market conditions and
other risks discussed in the Company’s most
recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Due to these uncertainties, there is an inherent risk that actual
results will differ materially from any forward-looking statements. The
Company is under no obligation to (and expressly disclaims any such
obligation to) update or alter any forward-looking statements whether as
a result of new information, future events or otherwise.
Pope & Talbot is a pulp and wood products company. The Company is based
in Portland, Oregon and trades on the New York stock exchange under the
symbol POP. Pope & Talbot was founded in 1849 and produces market pulp
and softwood lumber at mills in the U.S. and Canada. Markets for the
Company’s products include the U.S., Europe,
Canada, South America, and the Pacific Rim. For more information on Pope
& Talbot, Inc., please check our website at www.poptal.com.
POPE & TALBOT, INC. AND SUBSIDIARIES
(Thousands except per share, unaudited)
CONSOLIDATED STATEMENTS OF INCOME
First
Six months
Second Quarter
Quarter
ended June 30,
2007
2006(A)
2007
2007
2006(A)
Revenues:
Pulp
$
137,918
$
115,819
$
114,604
$
252,522
$
226,659
Wood Products
Lumber
82,185
88,613
66,982
149,167
187,847
Chips, logs and other
16,414
9,129
18,875
35,289
22,066
Total Wood Products
98,599
97,742
85,857
184,456
209,913
Total revenues
236,517
213,561
200,461
436,978
436,572
Costs and expenses:
Pulp cost of sales
151,574
115,197
113,279
264,853
221,345
Wood Products cost of sales
105,063
99,578
92,379
197,442
209,463
Selling, general and adminis-trative
10,163
9,260
9,473
19,636
19,026
Operating loss
(30,283
)
(10,474
)
(14,670
)
(44,953
)
(13,262
)
Interest expense
(10,946
)
(7,022
)
(10,112
)
(21,058
)
(13,315
)
Interest income
147
104
467
614
157
Foreign exchange gain (loss), net
2,186
(222
)
154
2,340
259
Loss on extinguishment of debt
-
(4,910
)
-
-
(4,910
)
Loss before income taxes
(38,896
)
(22,524
)
(24,161
)
(63,057
)
(31,071
)
Income tax provision (benefit)
4,020
(699
)
(5,534
)
(1,514
)
(1,226
)
Net loss
$
(42,916
)
$
(21,825
)
$
(18,627
)
$
(61,543
)
$
(29,845
)
Net loss per common share - basic and diluted
$
(2.62
)
$
(1.35
)
$
(1.15
)
$
(3.77
)
$
(1.84
)
Average shares outstanding - basic and diluted
16,364
16,227
16,268
16,317
16,231
CONSOLIDATED BALANCE SHEETS
June 30,
March 31,
December 31,
2007
2006(A)
2007
2006
Assets:
Current assets
$
259,378
$
237,198
$
298,848
$
258,336
Properties, net
391,435
394,880
367,396
371,806
Deferred charge
6,092
7,199
6,596
6,847
Other assets
25,051
30,463
24,145
25,030
Total assets
$
681,956
$
669,740
$
696,985
$
662,019
Liabilities and stockholders' equity:
Current portion of long-term debt
$
220,997
$
423
$
476
$
474
Other current liabilities
114,676
108,333
125,894
102,030
Long-term debt, excluding current portion
133,892
383,589
343,570
320,476
Deferred income tax liability, net
22,789
9,962
20,628
15,689
Other long-term liabilities
108,732
75,318
103,782
102,925
Total liabilities
601,086
577,625
594,350
541,594
Stockholders' equity
80,870
92,115
102,635
120,425
Total liabilities and stock-holders' equity
$
681,956
$
669,740
$
696,985
$
662,019
Long-term debt to total capitalization
81
%
81
%
77
%
73
%
SEGMENT INFORMATION
First
Six months
Second Quarter
Quarter
ended June 30,
2007
2006(A)
2007
2007
2006(A)
EBITDA:(B)
Pulp
$
(9,527
)
$
4,611
$
4,956
$
(4,571
)
$
13,569
Wood Products
(4,387
)
44
(4,537
)
(8,924
)
3,686
General Corporate
(3,789
)
(4,891
)
(4,850
)
(8,639
)
(9,426
)
(17,703
)
(236
)
(4,431
)
(22,134
)
7,829
Depreciation and amortization:
Pulp
$
6,835
$
6,942
$
6,677
$
13,512
$
14,109
Wood Products
3,397
3,297
3,214
6,611
6,282
General Corporate
162
221
194
356
441
10,394
10,460
10,085
20,479
20,832
Operating loss:
Pulp
$
(16,362
)
$
(2,331
)
$
(1,721
)
$
(18,083
)
$
(540
)
Wood Products
(7,784
)
(3,253
)
(7,751
)
(15,535
)
(2,596
)
General Corporate
(6,137
)
(4,890
)
(5,198
)
(11,335
)
(10,126
)
Operating loss
$
(30,283
)
$
(10,474
)
$
(14,670
)
$
(44,953
)
$
(13,262
)
Additional Information:
Lumber import duties
$
-
$
4,900
$
-
$
-
$
10,700
Lumber export taxes
5,100
-
5,000
10,100
-
Capital expenditures
6,239
8,419
5,197
11,436
14,958
Notes:
(A)
Recast from amounts previously reported due to the Company's
adoption of an accounting pronouncement issued in September 2006 for
planned major maintenance activities.
(B)
EBITDA equals net income (loss) before net interest expense, loss
on extinguishment of debt, income tax provision (benefit) and
depreciation and amortization. Segment EBITDA equals operating
income (loss) before segment depreciation and amortization. EBITDA
is a measure used by the Company's chief operating decision makers
to evaluate operating performance on both a consolidated and
segment-by-segment basis. The Company believes EBITDA is useful to
investors because it provides a means to evaluate the operating
performance of the Company and its segments on an ongoing basis
using criteria that are used by the Company's internal decision
makers and because it is frequently used by investors and other
interested parties in the evaluation of companies with substantial
financial leverage. The Company believes EBITDA is a meaningful
measure because it presents a transparent view of the Company's
recurring performance and allows management to readily view
operating trends, perform analytical comparisons, and identify
strategies to improve operating performance. For example, the
Company believes that excluding items such as taxes and net
interest expense enhances management's ability to assess and view
the core operating trends in its segments. EBITDA is not a measure
of the Company's liquidity or financial performance under
generally accepted accounting principles (GAAP) and should not be
considered as an alternative to net income (loss), income (loss)
from operations, or any other performance measure derived in
accordance with GAAP or as an alternative to cash flow from
operating activities as a measure of the Company's liquidity. The
use of EBITDA instead of net income (loss) or segment income
(loss) has limitations as an analytical tool, including the
inability to determine profitability; the exclusion of net
interest expense and associated significant cash requirements,
given the level of the Company's indebtedness; and the exclusion
of depreciation and amortization which represent significant and
unavoidable operating costs, given the capital expenditures needed
to maintain the Company's businesses. Management compensates for
these limitations by relying on GAAP results. The Company's
measures of EBITDA are not necessarily comparable to other
similarly titled captions of other companies due to potential
inconsistencies in the methods of calculation.
The following table reconciles net loss to EBITDA for the periods
indicated:
First
Six months
Second Quarter
Quarter
ended June 30,
2007
2006(1)
2007
2007
2006(1)
(thousands)
Net loss
$
(42,916
)
$
(21,825
)
$
(18,627
)
$
(61,543
)
$
(29,845
)
Interest expense, net
10,799
6,918
9,645
20,444
13,158
Loss on extinguish-ment of debt
-
4,910
-
-
4,910
Income tax provision (benefit)
4,020
(699
)
(5,534
)
(1,514
)
(1,226
)
Depreciation and amortization
10,394
10,460
10,085
20,479
20,832
EBITDA
$
(17,703
)
$
(236
)
$
(4,431
)
$
(22,134
)
$
7,829
The following table reconciles operating income (loss) to EBITDA for
each of the Company's Pulp and Wood Products operating segments:
First
Six months
Second Quarter
Quarter
ended June 30,
2007
2006(1)
2007
2007
2006(1)
Pulp
(thousands)
Operating loss
$
(16,362
)
$
(2,331
)
$
(1,721
)
$
(18,083
)
$
(540
)
Depreciation and amorti-zation
6,835
6,942
6,677
13,512
14,109
EBITDA
$
(9,527
)
$
4,611
$
4,956
$
(4,571
)
$
13,569
Wood Products
Operating loss
$
(7,784
)
$
(3,253
)
$
(7,751
)
$
(15,535
)
$
(2,596
)
Depre-ciation and amorti-zation
3,397
3,297
3,214
6,611
6,282
EBITDA
$
(4,387
)
$
44
$
(4,537
)
$
(8,924
)
$
3,686
Note 1 - Recast from amounts previously reported due to the
Company's adoption of an accounting pronouncement issued in
September 2006 for planned major maintenance activities.
The Company's senior secured credit agreement subjects the Company
to a financial covenant based on EBITDA. EBITDA is defined
differently in the credit agreement and requires additional
adjustments, among other items, to (i) eliminate any refunds of
prior years lumber import duties, (ii) include income tax benefits
recognized in any quarter, and (iii) exclude certain other
non-cash income and expense items. EBITDA as defined in the credit
agreement was $4.0 million for the four-quarter period ended June
30, 2007. The following table reconciles net income to credit
agreement EBITDA for the four quarters ended June 30, 2007:
Four quarters ended
June 30, 2007
(thousands)
Net income
$
13,621
Interest expense, net
29,200
Income tax provision (benefit)
11,010
Add back: quarterly income tax benefits recognized
6,360
Depreciation and amortization
41,807
Lumber duty refunds for prior years
(101,209
)
Refund of lumber import duties paid in first six months of 2006
(8,824
)
Other non-cash income and expenses:
Net periodic benefit costs for pension and postretirement plans, net
of benefits paid and cash contributions
4,680
Environmental accruals
4,536
LIFO accruals, net
2,128
Inventory write downs, net
1,429
Net unrealized foreign exchange gains recognized in earnings
(1,736
)
Stock compensation and other
983
Credit agreement EBITDA
$
3,985
EFFECT OF NEW ACCOUNTING PRONOUNCEMENT & RECLASSIFICATIONS
In January 2007, the Company changed its method of accounting for
planned major maintenance from the previously accepted method of
allocating the cost over interim periods in the year in which they
were incurred to the expense as incurred method. As required by
GAAP, the Company has retrospectively applied the expense as
incurred method to its 2006 income statement and segment operating
results for interim periods. Additionally beginning in January,
the Company began presenting foreign currency transaction and
remeasurement gains (losses) in non-operating income and expense.
In prior periods, the Company had presented these items in cost of
sales. The Company has reclassified the prior periods to be
consistent with this presentation. The effect of these changes is
summarized as follows:
Operating Income (Loss)
Net Income (Loss)
Earnings (Loss) Per
Basic & Diluted Share
As
Previously
Reported
After Retrospective
Application
As
Previously
Reported
After Retrospective
Application
As
Previously
Reported
After Retrospective
Application
(thousands except per share)
2006
First Quarter
$
(7,190
)
$
(2,788
)
$
(12,903
)
$
(8,020
)
$
(0.79
)
$
(0.49
)
Second Quarter
(3,379
)
(10,474
)
(14,508
)
(21,825
)
(0.89
)
(1.35
)
Third Quarter
1,026
(1,742
)
(10,161
)
(12,929
)
(0.62
)
(0.79
)
Fourth Quarter
92,984
98,518
82,891
88,093
5.09
5.41
Pulp - Operating
Income (Loss)
Wood Products -
Operating Income (Loss)
As
Previously
Reported
After Retrospective
Application
As
Previously
Reported
After Retrospective
Application
(thousands)
2006
First Quarter
$
(2,766
)
$
1,791
$
812
$
657
Second Quarter
3,967
(2,331
)
(2,456
)
(3,253
)
Third Quarter
13,105
9,515
(7,620
)
(6,798
)
Fourth Quarter
3,879
9,247
(1,219
)
(1,053
)