Q Earnings Conference Call July 31, Key Metrics and Non-GAAP to GAAP Reconciliations

Transcription

1 Q Earnings Conference Call July 31, 2012 Key Metrics and Non-GAAP to GAAP Reconciliations

2 Forward Looking Statements The matters discussed in this presentation concerning the company s future performance or anticipated financial results are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Reform Act of Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, these risks and uncertainties include the strength of the economy and demand for paper products, increases in raw material and energy prices, manufacturing problems at company facilities, and other risks and assumptions described under Information Concerning Forward-Looking Statements in Item 7 and in Item 1A of the company s Form 10-K for the year ended December 31, The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Non-GAAP Financial Measures This presentation refers to certain non-u.s. GAAP financial measures. A reconciliation of those numbers to U.S. GAAP financial measures is provided on the Company's website at: Q Earnings Call 2

3 Balance Sheet Highlights ($MM) 6/30/12 12/31/11 Cash & Equivalents $33.1 $26.7 Net Working Capital $58.2 $71.0 Long-Term Debt $150.0 $127.7 Shareholders Equity $204.7 $196.2 Debt/Total Capital* 42.3% 39.4% Total Borrowing Base $325 Remaining Available Borrowing Capacity $175 * The calculation of Debt/Total Capital is not intended to be used for purposes of calculating debt covenant compliance Q Earnings Call 3

4 Change in Net Debt ($MM) (1) See Appendix for reconciliation of EBITDA (2) See Appendix for details of the Other category Six Month Ended 6/30/12 Year Ended 12/31/11 EBITDA (1) $37.9 $29.8 Capital Expenditures, Net of Grants (73.6) (77.5) Change in Receivables Change in Inventories Change in Other Assets/Liabilities (18.7) (19.2) Proceeds on Disposals Other (2) (15.2) 22.1 Net Change in Debt $(15.9) $24.4 Beginning Net Debt $101.0 $125.4 Ending Net Debt $116.9 $101.0 Q Earnings Call 4

5 Pension Update ($MM) Discount Rates: % % % % Discount Rates Continue to Decline Increasing Long-term Obligations Increase Expense Minimum Funding Levels Achieved Despite Economics Q2 & 2H Charges as Result of Settlements and Plan Terminations Q Earnings Call 5

6 Wausau Paper Revenue 2011 $1.0B 2012 Expected $0.9B 5-Year $1.1B Print 33% Tissue 31% Food 16% Tape & Industrial 19% Coated & Liner 16% Tissue 41% Food 15% Tape & Industrial 18% Coated & Liner 15% Tissue 52% Transition 8% Executing Growth Strategy (Post Print) Q Earnings Call 6

7 2012 Guidance ($MM) Continuing Operations 2012 Targets Depreciation, Depletion and Amortization $45-$48 Interest Expense, net of Capitalized Interest $2-$3 Tax Rate 37% Capital Expenditures $162 Pension: Cash Contributions $25 Non-Cash Pension Expense $19-$21 Q Earnings Call 7

8 Statistical Measures Continuing Operations As Reported Continuing Operations Q4 11 Q3 11 Q2 11 Q1 11 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Q1 11 Statistical Measures: Fiber consumption: Market Pulp (metric tons) 82,717 84,428 88,040 86,133 62,243 63,610 61,731 61,080 65,064 60,836 Waste Paper (tons) 35,663 37,251 37,550 35,844 35,372 35,359 35,663 37,251 37,550 35,844 Energy consumption: Natural Gas DTH 752, , , , , , , , , ,829 Coal -tons 64,494 56,517 57,043 63,756 46,539 61,044 64,494 56,517 57,043 63,756 Q Earnings Call 8

9 Net Earnings Net Earnings to Adjusted Net Earnings Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 GAAP Net Earnings (Loss) per Share $ (0.03) $ 0.07 $ 0.10 $ (0.58) $ 0.20 $ (0.03) Discontinued Operations, Net of Tax (0.17) 0.07 Restated Earnings per Share 1 $ 0.00 $ 0.10 $ 0.11 $ 0.51 $ 0.03 $ 0.04 Gain on Sale of Timberlands (0.47) - - Contract Adjustment at Former Manufacturing Facility Capital-Related Expense Pension Plan Settlement Charges Adjusted Net Earnings per Share 1 $ 0.04 $ 0.11 $ 0.12 $ 0.05 $ 0.10 $ Totals may not foot due to rounding differences Q Earnings Call 9

10 Change in Net Debt Reconciliation of EBITDA Year Ended December 31, 2011 Six Months Ended June 30, 2012 Operating profit $ 62.2 $ 7.5 Earnings (loss) from discontinued operations, net of tax (57.1) 4.8 Tax impact on earnings of discontinued operations (31.1) 2.8 Depreciation, depletion, and amortization $ 29.8 $ 37.9 Reconciliation of "Other" Changes Year Ended December 31, 2011 Six Months Ended June 30, 2012 Compensation expense for stock-based grants $ 3.0 $ 1.5 Change in deferred taxes (23.3) (5.1) Change in accrued taxes Cash paid for taxes (1.2) (2.4) Dividends paid (5.9) (3.0) Gain on sale of business - (12.2) Gain on sale of assets (36.2) - Impairment and writedown of long-lived and other assets Other $ 22.1 $ (15.2) Q Earnings Call 10

11 Net Sales and Tissue EBITDA Net Sales to Net Sales - Continuing Operations WPP Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Consolidated Net Sales $ $ $ $ $ $ Net Sales from Discontinued Operations (57.2) (51.3) (53.3) (49.6) (41.5) (3.5) Consolidated Net Sales -Continuing Operations 1 $ $ $ $ $ $ Reconciliation of Tissue Segment Adjusted EBITDA Year Ended December 31, 2011 Operating profit $ 31.4 Depreciation, depletion, and amortization 30.0 EBITDA 61.4 Capital-related expenses 2.2 Adjusted EBITDA $ Totals may not foot due to rounding differences Q Earnings Call 11

12 Quarterly Reconciliations Operating Profit to Adjusted Operating Profit ($MM) Paper Segment Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Operating Profit (Loss) $ (1.4) $ 2.4 $ 5.6 $ (82.9) $ 13.3 $ (3.4) Discontinued Operations (13.0) 5.4 Contract Adjustment at Former Manufacturing Facility Capital Related Expenses Adjusted Operating Profit 1 $ 3.9 $ 5.6 $ 5.9 $ 0.7 $ 3.6 $ 2.0 Operating Profit to Adjusted Operating Profit ($MM) Tissue Segment Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Operating Profit $ 6.3 $ 8.7 $ 7.0 $ 9.4 $ 9.2 $9.1 Capital Related Expense Adjusted Operating Profit 1 $ 6.5 $ 9.0 $ 7.7 $ 10.4 $ 11.1 $ Differences in total due to rounding Q Earnings Call 12

13 Adjusted EBITDA Wausau Paper Corp. Adjusted EBITDA - Unaudited Trailing Twelve Months June 30, 2012 Operating Profit $ (30.2) Discontinued Operations 88.3 Capital Related Expenses 5.1 Timberland Sales (35.7) Contract Adjustment at Former Manufacturing Facility 3.3 Pension Plan Settlement Charges 2.2 Adjusted Operating Profit $ 33.0 Depreciation, depletion, and amortization 47.1 Adjusted EBITDA -Unaudited $ 80.1 Q Earnings Call 13