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2018-08-06 11:45 CEST
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Boise Cascade Company Reports 2018 Second Quarter Net Income of $41.8 Million on Sales of $1.4 Billion

For Immediate Release: August 6, 2018

BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $41.8 million, or $1.06 per share, on sales of $1.4 billion for the second quarter ended June 30, 2018. Second quarter results include $9.0 million of net after-tax losses, or $0.23 per share, from non-cash pension settlement charges.

Second Quarter 2018 Highlights

    2Q 2018   2Q 2017   % change
             
    (in thousands, except per-share data and percentages)
             
Consolidated Results            
Sales   $ 1,408,132     $ 1,138,939     24 %
Net income   41,825     22,154     89 %
Net income per common share - diluted   1.06     0.57     86 %
Adjusted EBITDA 1   85,800     62,063     38 %
             
Segment Results            
Wood Products sales   $ 425,483     $ 350,277     21 %
Wood Products income   36,482     15,395     137 %
Wood Products EBITDA 1   55,935     30,659     82 %
             
Building Materials Distribution sales   1,213,783     980,706     24 %
Building Materials Distribution income   47,713     34,509     38 %
Building Materials Distribution EBITDA 1   52,160     38,365     36 %

1 For reconciliations of non-GAAP measures, see summary notes at the end of this press release.

            In the second quarter 2018, total U.S. housing starts increased 8% compared to the same period last year. Single-family starts, which are the primary demand driver of our sales, increased 9% and multi-family starts increased 6% in the second quarter 2018.

            "Both of our businesses delivered outstanding results in the second quarter. Wood Products made very good progress on engineered wood products pricing and took advantage of exceptionally strong plywood markets.  BMD executed well and captured market opportunities at both the local and national level," commented Tom Corrick, CEO. "I am very pleased that we further strengthened our nationwide distribution capabilities with the acquisitions in Nashville, Tennessee, and Medford, Oregon. Similar acquisitions remain a priority. As reflected by these acquisitions and our board's decision to declare an additional dividend of $1.00 per share this quarter, we continue to have a strong focus on deploying capital to create shareholder value."

Wood Products

            Wood Products sales, including sales to Building Materials Distribution (BMD), increased $75.2 million, or 21%, to $425.5 million for the three months ended June 30, 2018, from $350.3 million for the three months ended June 30, 2017. The increase in sales was driven primarily by higher sales prices for plywood, I-joists and LVL (I-joists and LVL are collectively referred to as EWP). In addition, increases in EWP sales volumes contributed to improved sales. Sales volumes for plywood were relatively flat compared with the same period in the prior year.

            Wood Products segment income increased $21.1 million to $36.5 million for the three months ended June 30, 2018, from $15.4 million for the three months ended June 30, 2017. The improvement in segment income was due primarily to higher sales prices of plywood and EWP. These improvements were offset partially by higher log costs, as well as oriented strand board (OSB) costs used in the manufacture of I-joists. In addition, depreciation and amortization expense increased $4.2 million compared to the prior year quarter.

            Comparative average net selling prices and sales volume changes for EWP and plywood are as follows:

    2Q 2018 vs. 2Q 2017   2Q 2018 vs. 1Q 2018
         
 Average Net Selling Prices        
  LVL   10%   5%
  I-joists   12%   3%
  Plywood   26%   6%
 Sales Volumes        
  LVL   3%   -%
  I-joists   5%   9%
  Plywood   -%   2%

Building Materials Distribution

            BMD's sales increased $233.1 million, or 24%, to $1,213.8 million for the three months ended June 30, 2018, from $980.7 million for the three months ended June 30, 2017. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and sales volume increases of 15% and 9%, respectively. By product line, commodity sales increased 33%, general line product sales increased 15%, and sales of EWP (substantially all of which is sourced through our Wood Products segment) increased 18%.

            BMD segment income increased $13.2 million to $47.7 million for the three months ended June 30, 2018, from $34.5 million in the comparative prior year quarter, driven primarily by a higher gross margin of $27.8 million generated from a sales increase of 24%. The increase in gross margin was offset partially by higher selling and distribution expenses of $12.7 million.

             In second quarter 2018, BMD completed the acquisition of wholesale building material distribution locations in Nashville, Tennessee and Medford, Oregon (collectively, the "Acquisitions"). The company funded the Acquisitions with cash on hand. These distribution locations add to our existing distribution business and strengthen our nationwide presence. In addition, we believe we will be able to broaden our product and service offerings within these markets following the Acquisitions.

Income Taxes

            On December 22, 2017, the Tax Cuts and Jobs Act was enacted by the U.S. government. The most significant impact to our financial statements is the reduction of the corporate federal income tax rate from 35% to 21%. For the three months ended June 30, 2018 and 2017, we recorded $13.8 million and $13.1 million, respectively, of income tax expense and had an effective rate of 24.9% and 37.2%, respectively.

Balance Sheet

            Boise Cascade ended the second quarter with $210.0 million of cash and cash equivalents and $395.4 million of undrawn committed bank line availability, for total available liquidity of $605.4 million. The Company had $438.9 million of outstanding debt at June 30, 2018.

            On August 2, 2018, our board of directors declared a quarterly dividend of $0.07 per share, as well as an additional dividend of $1.00 per share, on our common stock payable on September 17, 2018, to stockholders of record on August 31, 2018.

            On April 25, 2018, Boise Cascade transferred $151.8 million of its pension plan assets to The Prudential Insurance Company of America (Prudential) for the purchase of a group annuity contract. Under the arrangement, Prudential assumed ongoing responsibility for administration and benefit payments for approximately one-third of Boise Cascade's U.S. qualified pension plan projected benefit obligations. As a result of the transaction, the Company recognized a non-cash pension settlement charge of $12.0 million before tax in the second quarter of 2018.

            On August 3, 2018, we entered into a commitment letter with Prudential to purchase another group annuity contract, in which Prudential will assume ongoing responsibility for administration and benefit payments for approximately 40 percent, or $122 million, of Boise Cascade's then remaining U.S. qualified pension plan projected benefit obligations. As a result, we expect to recognize a non-cash pension settlement charge of approximately $10 million before tax in the third quarter of 2018. In conjunction with the transaction, we also plan to make a discretionary pension contribution of $20 million in third quarter 2018, for which we will receive a tax deduction at the 2017 federal income tax rate.

            The pension-related transactions significantly reduce the Company's pension liability and its exposure to pension funding obligations that can result from future asset return, discount rate, and mortality assumption changes.

Outlook

            As in recent years, we expect to continue to experience modest demand growth for the products we manufacture and distribute in 2018. The July 2018 Blue Chip consensus forecast for 2018 reflects 1.32 million total U.S. housing starts, a 10% expected increase from 2017 levels. We remain optimistic that the improvement in demand for our products will continue as household formation rates and residential construction continue to recover. Future commodity product pricing and commodity input costs could be volatile in response to industry operating rates, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns. Commodity product pricing is currently above historical levels; however, prices have trended downward since the middle of June 2018. As a wholesale distributor of a broad mix of commodity products and a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices.

            We have successfully grown revenues and earnings in our distribution business as residential construction has recovered in the U.S. over the last several years. As we consider further acquisitions, much of our activity will remain focused on adding to our distribution capabilities.

            We expect our capital spending, excluding acquisitions, to be $75-$85 million during 2018.

About Boise Cascade
           
            Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit the Company's website at www.bc.com.

Webcast and Conference Call

            Boise Cascade will host a webcast and conference call on Monday, August 6, at 11 a.m. Eastern, to review the Company's second quarter results.

            You can join the webcast through the Company's website by going to www.bc.com and clicking on the Event Calendar link under the Investor Relations heading. Please go to the website at least 15 minutes before the start of the webcast to register. To join the conference call, dial 844-795-4410 (international callers should dial 661-378-9637), participant passcode 6886808, at least 10 minutes before the start of the call.

            The archived webcast will be available in the Investor Relations section of the Company's website. A replay of the conference call will be available from Monday, August 6, at 2 p.m. Eastern through Monday, August 13, at 2 p.m. Eastern. Replay numbers are 855-859-2056 for U.S. callers and 404-537-3406 for international callers, and the passcode will be 6886808.

Basis of Presentation
           
            We refer to the terms EBITDA and Adjusted EBITDA in this earnings release as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States ("GAAP"). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt.

            We believe EBITDA and Adjusted EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA and Adjusted EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA and Adjusted EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA and Adjusted EBITDA instead of net income or segment income (loss) have limitations as analytical tools, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
           
Forward-Looking Statements

            This press release includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, prices for building products, commodity input costs, the effect of general economic conditions, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

Boise Cascade Company
Consolidated Statements of Operations
(in thousands, except per-share data)

  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
                   
Sales $ 1,408,132     $ 1,138,939     $ 1,182,841     $ 2,590,973     $ 2,113,382  
                   
Costs and expenses                  
Materials, labor, and other operating expenses (excluding depreciation) 1,193,918     980,210     1,009,778     2,203,696     1,826,969  
Depreciation and amortization 24,296     19,601     22,111     46,407     38,945  
Selling and distribution expenses 96,841     82,308     83,356     180,197     155,988  
General and administrative expenses 19,977     15,559     15,886     35,863     29,129  
Other (income) expense, net (956 )   (1,238 )   (94 )   (1,050 )   (1,273 )
  1,334,076     1,096,440     1,131,037     2,465,113     2,049,758  
                   
Income from operations 74,056     42,499     51,804     125,860     63,624  
                   
Foreign currency exchange gain (loss) (172 )   13     (263 )   (435 )   41  
Pension expense (excluding service costs) (12,380 )   (50 )   (244 )   (12,624 )   (81 )
Interest expense (6,580 )   (6,491 )   (6,362 )   (12,942 )   (12,855 )
Interest income 237     54     264     501     87  
Change in fair value of interest rate swaps 499     (724 )   1,641     2,140     (429 )
  (18,396 )   (7,198 )   (4,964 )   (23,360 )   (13,237 )
                   
Income before income taxes 55,660     35,301     46,840     102,500     50,387  
Income tax provision (13,835 )   (13,147 )   (9,790 )   (23,625 )   (18,213 )
Net income $ 41,825     $ 22,154     $ 37,050     $ 78,875     $ 32,174  
                   
Weighted average common shares outstanding:                  
  Basic 38,981     38,643     38,778     38,880     38,572  
  Diluted 39,403     39,002     39,396     39,384     38,931  
                   
Net income per common share:                  
  Basic $ 1.07     $ 0.57     $ 0.96     $ 2.03     $ 0.83  
  Diluted $ 1.06     $ 0.57     $ 0.94     $ 2.00     $ 0.83  

See accompanying summary notes to consolidated financial statements and segment information.

Wood Products Segment
Statements of Operations
(in thousands, except percentages)

  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
                   
Segment sales $ 425,483     $ 350,277     $ 397,991     $ 823,474     $ 675,934  
                   
Costs and expenses                  
Materials, labor, and other operating expenses (excluding depreciation) 356,297     309,876     342,559     698,856     602,336  
Depreciation and amortization 19,453     15,264     17,544     36,997     30,415  
Selling and distribution expenses 9,382     7,563     8,113     17,495     15,299  
General and administrative expenses 4,678     3,213     3,692     8,370     6,083  
Other (income) expense, net (809 )   (1,034 )   (38 )   (847 )   (982 )
  389,001     334,882     371,870     760,871     653,151  
                   
Segment income $ 36,482     $ 15,395     $ 26,121     $ 62,603     $ 22,783  
                   
  (percentage of sales)
                   
Segment sales 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                   
Costs and expenses                  
Materials, labor, and other operating expenses (excluding depreciation) 83.7 %   88.5 %   86.1 %   84.9 %   89.1 %
Depreciation and amortization 4.6 %   4.4 %   4.4 %   4.5 %   4.5 %
Selling and distribution expenses 2.2 %   2.2 %   2.0 %   2.1 %   2.3 %
General and administrative expenses 1.1 %   0.9 %   0.9 %   1.0 %   0.9 %
Other (income) expense, net (0.2 )%   (0.3 %)   - %   (0.1 )%   (0.1 %)
  91.4 %   95.6 %   93.4 %   92.4 %   96.6 %
                   
Segment income 8.6 %   4.4 %   6.6 %   7.6 %   3.4 %

Building Materials Distribution Segment
Statements of Operations
(in thousands, except percentages)

  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
                   
Segment sales $ 1,213,783     $ 980,706     $ 992,381     $ 2,206,164     $ 1,796,389  
                   
Costs and expenses                  
Materials, labor, and other operating expenses (excluding depreciation) 1,067,592     862,349     874,859     1,942,451     1,583,648  
Depreciation and amortization 4,447     3,856     4,172     8,619     7,582  
Selling and distribution expenses 87,394     74,648     75,181     162,575     140,496  
General and administrative expenses 6,787     5,548     5,830     12,617     10,541  
Other (income) expense, net (150 )   (204 )   (49 )   (199 )   (352 )
  1,166,070     946,197     959,993     2,126,063     1,741,915  
                   
Segment income $ 47,713     $ 34,509     $ 32,388     $ 80,101     $ 54,474  
                   
  (percentage of sales)
                   
Segment sales 100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                   
Costs and expenses                  
Materials, labor, and other operating expenses (excluding depreciation) 88.0 %   87.9 %   88.2 %   88.0 %   88.2 %
Depreciation and amortization 0.4 %   0.4 %   0.4 %   0.4 %   0.4 %
Selling and distribution expenses 7.2 %   7.6 %   7.6 %   7.4 %   7.8 %
General and administrative expenses 0.6 %   0.6 %   0.6 %   0.6 %   0.6 %
Other (income) expense, net - %   - %   - %   - %   - %
  96.1 %   96.5 %   96.7 %   96.4 %   97.0 %
                   
Segment income 3.9 %   3.5 %   3.3 %   3.6 %   3.0 %

Segment Information
(in thousands)

  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
Segment sales                  
Wood Products $ 425,483     $ 350,277     $ 397,991     $ 823,474     $ 675,934  
Building Materials Distribution 1,213,783     980,706     992,381     2,206,164     1,796,389  
Intersegment eliminations and other (231,134 )   (192,044 )   (207,531 )   (438,665 )   (358,941 )
Total net sales $ 1,408,132     $ 1,138,939     $ 1,182,841     $ 2,590,973     $ 2,113,382  
                   
Segment income                  
Wood Products $ 36,482     $ 15,395     $ 26,121     $ 62,603     $ 22,783  
Building Materials Distribution 47,713     34,509     32,388     80,101     54,474  
Total segment income 84,195     49,904     58,509     142,704     77,257  
Unallocated corporate (10,139 )   (7,405 )   (6,705 )   (16,844 )   (13,633 )
Income from operations $ 74,056     $ 42,499     $ 51,804     $ 125,860     $ 63,624  
                   
Segment EBITDA (a)                  
Wood Products $ 55,935     $ 30,659     $ 43,665     $ 99,600     $ 53,198  
Building Materials Distribution 52,160     38,365     36,560     88,720     62,056  

See accompanying summary notes to consolidated financial statements and segment information.

Boise Cascade Company
Consolidated Balance Sheets
(in thousands)

  June 30, 2018   December 31, 2017
ASSETS      
       
Current      
Cash and cash equivalents $ 210,011     $ 177,140  
Receivables      
Trade, less allowances of $904 and $945 360,765     246,452  
Related parties 506     345  
Other 13,913     9,380  
Inventories 572,606     476,673  
Prepaid expenses and other 13,385     22,582  
Total current assets 1,171,186     932,572  
       
Property and equipment, net 562,025     565,792  
Timber deposits 15,687     13,503  
Goodwill 60,454     55,433  
Intangible assets, net 17,357     15,066  
Deferred income taxes 8,739     9,064  
Other assets 15,004     15,763  
Total assets $ 1,850,452     $ 1,607,193  

Boise Cascade Company
Consolidated Balance Sheets (continued)
(in thousands, except per-share data)

  June 30, 2018   December 31, 2017
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Current      
Accounts payable      
Trade $ 349,648     $ 233,562  
Related parties 2,017     1,225  
Accrued liabilities      
Compensation and benefits 81,147     84,246  
Interest payable 6,742     6,742  
Other 80,306     55,786  
Total current liabilities 519,860     381,561  
       
Debt      
Long-term debt 438,870     438,312  
       
Other      
Compensation and benefits 64,143     75,439  
Deferred income taxes 23,150     16,454  
Other long-term liabilities 36,241     20,878  
  123,534     112,771  
       
Commitments and contingent liabilities      
       
Stockholders' equity      
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding -     -  
Common stock, $0.01 par value per share; 300,000 shares authorized, 44,058 and 43,748 shares issued, respectively 441     437  
Treasury stock, 5,167 shares at cost (133,979 )   (133,979 )
Additional paid-in capital 524,099     523,550  
Accumulated other comprehensive loss (56,907 )   (76,702 )
Retained earnings 434,534     361,243  
Total stockholders' equity 768,188     674,549  
Total liabilities and stockholders' equity $ 1,850,452     $ 1,607,193  

Boise Cascade Company
Consolidated Statements of Cash Flows
(in thousands)

  Six Months Ended
June 30
  2018   2017
Cash provided by (used for) operations      
Net income $ 78,875     $ 32,174  
Items in net income not using (providing) cash      
Depreciation and amortization, including deferred financing costs and other 47,416     39,929  
Stock-based compensation 4,731     4,443  
Pension expense 13,026     683  
Deferred income taxes (1,092 )   4,542  
Change in fair value of interest rate swaps (2,140 )   429  
Other (1,051 )   (1,259 )
Decrease (increase) in working capital, net of acquisitions      
Receivables (111,068 )   (107,781 )
Inventories (89,051 )   (57,260 )
Prepaid expenses and other (4,361 )   (3,960 )
Accounts payable and accrued liabilities 134,498     114,908  
Pension contributions (1,042 )   (1,145 )
Income taxes payable 18,586     7,063  
Other 1,009     (1,288 )
Net cash provided by operations 88,336     31,478  
       
Cash provided by (used for) investment      
Expenditures for property and equipment (28,327 )   (29,551 )
Acquisitions of businesses and facilities (17,577 )   -  
Proceeds from sales of assets and other 321     1,840  
Net cash used for investment (45,583 )   (27,711 )
       
Cash provided by (used for) financing      
Borrowings of long-term debt, including revolving credit facility 7,500     366,400  
Payments of long-term debt, including revolving credit facility (7,500 )   (366,400 )
Tax withholding payments on stock-based awards (5,120 )   (2,901 )
Dividends paid on common stock (5,481 )   -  
Proceeds from exercise of stock options 942     22  
Other (223 )   (153 )
Net cash used for financing (9,882 )   (3,032 )
       
Net increase in cash and cash equivalents 32,871     735  
       
Balance at beginning of the period 177,140     103,978  
       
Balance at end of the period $ 210,011     $ 104,713  

Summary Notes to Consolidated Financial Statements and Segment Information

            The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company's 2017 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals.

  1. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps and loss on extinguishment of debt. The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended June 30, 2018 and 2017, and March 31, 2018, and the six months ended June 30, 2018 and 2017:
  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
  (in thousands)
Net income $ 41,825     $ 22,154     $ 37,050     $ 78,875     $ 32,174  
Interest expense 6,580     6,491     6,362     12,942     12,855  
Interest income (237 )   (54 )   (264 )   (501 )   (87 )
Income tax provision 13,835     13,147     9,790     23,625     18,213  
Depreciation and amortization 24,296     19,601     22,111     46,407     38,945  
EBITDA 86,299     61,339     75,049     161,348     102,100  
Change in fair value of interest rate swaps (499 )   724     (1,641 )   (2,140 )   429  
Adjusted EBITDA $ 85,800     $ 62,063     $ 73,408     $ 159,208     $ 102,529  

The following table reconciles segment income and unallocated corporate costs to EBITDA and adjusted EBITDA for the three months ended June 30, 2018 and 2017, and March 31, 2018, and the six months ended June 30, 2018 and 2017:

  Three Months Ended   Six Months Ended
  June 30   March 31,
 2018
  June 30
  2018   2017     2018   2017
                   
  (in thousands)
Wood Products                  
Segment income $ 36,482     $ 15,395     $ 26,121     $ 62,603     $ 22,783  
Depreciation and amortization 19,453     15,264     17,544     36,997     30,415  
EBITDA $ 55,935     $ 30,659     $ 43,665     $ 99,600     $ 53,198  
                   
Building Materials Distribution                  
Segment income $ 47,713     $ 34,509     $ 32,388     $ 80,101     $ 54,474  
Depreciation and amortization 4,447     3,856     4,172     8,619     7,582  
EBITDA $ 52,160     $ 38,365     $ 36,560     $ 88,720     $ 62,056  
                   
Corporate                  
Unallocated corporate expenses $ (10,139 )   $ (7,405 )   $ (6,705 )   $ (16,844 )   $ (13,633 )
Foreign currency exchange gain (loss) (172 )   13     (263 )   (435 )   41  
Pension expense (excluding service costs) (12,380 )   (50 )   (244 )   (12,624 )   (81 )
Change in fair value of interest rate swaps 499     (724 )   1,641     2,140     (429 )
Depreciation and amortization 396     481     395     791     948  
EBITDA (21,796 )   (7,685 )   (5,176 )   (26,972 )   (13,154 )
Change in fair value of interest rate swaps (499 )   724     (1,641 )   (2,140 )   429  
Corporate adjusted EBITDA $ (22,295 )   $ (6,961 )   $ (6,817 )   $ (29,112 )   $ (12,725 )
                   
Total company adjusted EBITDA $ 85,800     $ 62,063     $ 73,408     $ 159,208     $ 102,529  

Investor contact:  Wayne Rancourt, 208 384 6073
Media contact:  John Sahlberg, 208 384 6451

HUG#2209256