Neenah Paper Inc. (NP, Financial) filed Quarterly Report for the period ended 2009-03-31.
Neenah Paper manufactures and distributes a wide range of premium and specialty paper grades with well-known brands such as CLASSIC ENVIRONMENT KIMDURA and MUNISING LP. The company also produces and sells bleached pulp primarily for use in the manufacture of tissue and writing papers. Neenah Paper is based in Alpharetta Georgia and has manufacturing operations in Wisconsin Michigan and in the Canadian provinces of Ontario and Nova Scotia. Neenah Paper Inc. has a market cap of $116.2 million; its shares were traded at around $7.93 with a P/E ratio of 11.2 and P/S ratio of 0.2. The dividend yield of Neenah Paper Inc. stocks is 5%.
For the three months ended March 31, 2009, we recognized pre-tax income from discontinued operations of $0.2 million compared to a pre-tax loss of $131.8 million in the prior year period. The pre-tax loss in the prior year period was primarily due to recognition of a non-cash charge of $90.5 million to write-off the long-lived assets of the Pictou Mill. In addition, we recognized a pre-tax loss of $39.5 million for the estimated loss on disposal of the Pictou Mill. Excluding the impairment charge and the estimated loss on disposal, the pre-tax loss from operations for the three months ended March 31, 2008 was $1.8 million.
· For the three months ended March 31, 2009, cash used in investing activities was $3.0 million, a decrease of $3.1 million versus the prior year period. The decrease in cash used for investing activities was primarily due to a decrease of $4.3 million in capital spending. We have aggregate planned capital expenditures for 2009 of approximately $10 million. These capital expenditures are not expected to have a material adverse effect on our financial condition, results of operations or liquidity.
· Our liquidity requirements are provided by cash generated from operations, short- and long-term borrowings and proceeds from asset sales. Availability under our revolving credit facility varies over time depending on the value of our inventory, receivables and various capital assets. As of March 31, 2009, we had $85.0 million outstanding under our revolving credit facility, outstanding letters of credit of $1.6 million and $62.2 million of available credit. In addition, we have 6.4 million ($8.6 million, based on exchanges rates at March 31, 2009) of available credit under our German revolving line of credit.
· Our required debt payments through March 31, 2010 are $18.0 million. Such payments include required amortization payments on our Term Loan and German construction financing of approximately $5.0 million and $1.6 million, respectively, and $11.4 million on our evergreen German unsecured revolving line of credit which we expect to rollover in November 2009.
On January 1, 2009, we changed the estimated useful life of our Enterprise Resource Planning software from five years to eight years to more accurately reflect our expected future utilization of the software. The change in the estimated useful life reduced depreciation expense for the three months ended March 31, 2009 by approximately $0.5 million or $0.02 per diluted share and is expected to reduce depreciation expense for the year ended December 31, 2009 by $1.9 million or $0.08 per diluted share.
Read the The complete ReportNP is in the portfolios of John Keeley of Keeley Fund Management.
Neenah Paper manufactures and distributes a wide range of premium and specialty paper grades with well-known brands such as CLASSIC ENVIRONMENT KIMDURA and MUNISING LP. The company also produces and sells bleached pulp primarily for use in the manufacture of tissue and writing papers. Neenah Paper is based in Alpharetta Georgia and has manufacturing operations in Wisconsin Michigan and in the Canadian provinces of Ontario and Nova Scotia. Neenah Paper Inc. has a market cap of $116.2 million; its shares were traded at around $7.93 with a P/E ratio of 11.2 and P/S ratio of 0.2. The dividend yield of Neenah Paper Inc. stocks is 5%.
Highlight of Business Operations:
For the three months ended March 31, 2009, our consolidated net sales decreased approximately $71 million from the prior year period to $134.1 million. The decrease was primarily due to lower volumes as a result of substantially reduced market demand in the first quarter of 2009 due to continued global economic weakness. Our consolidated operating income of $4.9 million for the three months ended March 31, 2009 decreased $13.0 million compared to the prior year primarily due to lower volumes and a commensurate reduction in paper machine operating schedules to control inventory. These unfavorable factors were only partially offset by lower manufacturing input costs, reduced spending due to initiatives to control operating costs and higher average selling prices.For the three months ended March 31, 2009, we recognized pre-tax income from discontinued operations of $0.2 million compared to a pre-tax loss of $131.8 million in the prior year period. The pre-tax loss in the prior year period was primarily due to recognition of a non-cash charge of $90.5 million to write-off the long-lived assets of the Pictou Mill. In addition, we recognized a pre-tax loss of $39.5 million for the estimated loss on disposal of the Pictou Mill. Excluding the impairment charge and the estimated loss on disposal, the pre-tax loss from operations for the three months ended March 31, 2008 was $1.8 million.
· For the three months ended March 31, 2009, cash used in investing activities was $3.0 million, a decrease of $3.1 million versus the prior year period. The decrease in cash used for investing activities was primarily due to a decrease of $4.3 million in capital spending. We have aggregate planned capital expenditures for 2009 of approximately $10 million. These capital expenditures are not expected to have a material adverse effect on our financial condition, results of operations or liquidity.
· Our liquidity requirements are provided by cash generated from operations, short- and long-term borrowings and proceeds from asset sales. Availability under our revolving credit facility varies over time depending on the value of our inventory, receivables and various capital assets. As of March 31, 2009, we had $85.0 million outstanding under our revolving credit facility, outstanding letters of credit of $1.6 million and $62.2 million of available credit. In addition, we have 6.4 million ($8.6 million, based on exchanges rates at March 31, 2009) of available credit under our German revolving line of credit.
· Our required debt payments through March 31, 2010 are $18.0 million. Such payments include required amortization payments on our Term Loan and German construction financing of approximately $5.0 million and $1.6 million, respectively, and $11.4 million on our evergreen German unsecured revolving line of credit which we expect to rollover in November 2009.
On January 1, 2009, we changed the estimated useful life of our Enterprise Resource Planning software from five years to eight years to more accurately reflect our expected future utilization of the software. The change in the estimated useful life reduced depreciation expense for the three months ended March 31, 2009 by approximately $0.5 million or $0.02 per diluted share and is expected to reduce depreciation expense for the year ended December 31, 2009 by $1.9 million or $0.08 per diluted share.
Read the The complete ReportNP is in the portfolios of John Keeley of Keeley Fund Management.
