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NuStar GP Holdings LLC Units Representin Reports Operating Results (10-Q)

May 15, 2009 | About:

NuStar GP Holdings LLC Units Representin (NSH) filed Quarterly Report for the period ended 2009-04-03.

NUSTAR GP HOLDINGS is a publicly traded limited liability company that owns the two percent general partner interest a 18.4 percent limited partner interest and the incentive distribution rights in NuStar Energy L.P.They are one of the largest asphalt refiners and marketers and independent terminal and petroleum liquids pipeline operators in the nation with operations in the United States Netherlands Antilles Canada Mexico the Netherlands and the United Kingdom. NuStar GP Holdings LLC Units Representin has a market cap of $978.4 million; its shares were traded at around $23.02 with a P/E ratio of 15.4 and P/S ratio of 14.1. The dividend yield of NuStar GP Holdings LLC Units Representin stocks is 7.6%.

Highlight of Business Operations:

At the effective time of the Merger, referred to as the Effective Time, each issued and outstanding share of our common stock, other than shares owned by Cenveo or Merger Sub, will be converted into the right to receive (i) $0.75 in cash without interest, referred to as the Cash Consideration, and (ii) a number of shares of Cenveo’s common stock, referred to as the Stock Consideration and together with the Cash Consideration, the Merger Consideration, equal to the quotient obtained by dividing $6.130 by the volume weighted average price per share of Cenveo common stock on fifteen days selected by lot out of the thirty trading days ending on and including the second trading day immediately prior to the closing date of the Merger (that average is referred to as the Cenveo Stock Measurement Price). However, if the Cenveo Stock Measurement Price is equal to or less than $3.750, then the Stock Consideration will be equal to 1.635 shares of Cenveo common stock and if the Cenveo Stock Measurement Price is greater than or equal to $5.250, then the Stock Consideration will be equal to 1.168 shares of Cenveo common stock.

Net interest expense decreased $.2 million to $.3 million for the first quarter of 2009 compared to $.5 million for the first quarter of 2008. The decrease was primarily the result of $.2 million decrease in the expense related to the change in fair value of our interest rate swap.

Net sales for our Label Products segment increased $1.2 million, or 4.6 percent, to $27.2 million for the first quarter of 2009 compared to $26.0 million for the first quarter of 2008. The increase is primarily due to increases of $1.0 million in our pharmacy product line, $1.1 million in our automatic identification product line as the result of net business gains, $.3 million in our ticket product line and $.4 million in miscellaneous other product lines, offset by decreases of $.9 million in our supermarket scale product line due to the loss of business, $.4 million in our retail shelf product line and $.3 million in our EDP product line.

Net sales for our Specialty Paper Products segment decreased $2.8 million, or 7.3 percent, to $35.8 million for the first quarter of 2009 from $38.6 million for the first quarter of 2008. The decrease is primarily the result of decreases of $1.9 million in our Wide Format product line as a result of softness in the construction industry, $.4 million in our dry gum product line and $.4 million in our heatseal product line and $1.4 million in other product lines. The decreases were partially offset by increases of $.5 million in our IBM branded products, $.4 million in our thermal point of sale product line and $.4 million in our thermal ticket and tag product line as the result of increased business to existing customers.

Cash and cash equivalents decreased $1.6 million during the first quarter of 2009. Cash from operations of $4.2 million was more than offset by cash used in investing activities of $.2 million and cash used in financing activities of $5.6 million. Our cash flows from continuing and discontinuing operations are combined in our consolidated statements of cash flows.

Cash provided by operations of $4.2 million for the first quarter of 2009 resulted primarily from changes in operating assets and liabilities. The change in operating assets and liabilities of $3.5 million was primarily due to an increase of $1.6 million in accounts payable, a decrease in accounts receivable of $2.0 million and a $.7 million decrease in inventory which was partially offset by a $1.2 million decrease in accrued expenses. In addition, cash provided by operations included our net loss of $.3 million, which was impacted by non-cash charges of $1.0 million for depreciation and amortization, stock-based compensation, and non-cash income related to the amortization of the deferred gain on the sale of our Merrimack, New Hampshire property.

Read the The complete ReportNSH is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.

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