NEW YORK, April 29, 2009 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq:MERC) (TSX:MRI.U) today reported results for the first quarter ended March 31, 2009. Total revenues in the quarter and Operating EBITDA decreased to EUR139.6 million (U.S.$181.9 million) and EUR1.1 million (U.S.$1.4 million) from EUR186.8 million (U.S.$280.2 million) and EUR32.8 million (U.S.$49.4 million), respectively, in the same period last year as pulp industry conditions remained challenging. Operating EBITDA is defined on page 4 of this press release and reconciled to net income (loss) attributable to common shareholders on page 6 of the financial tables in this press release.
Summary Financial Highlights
Q1 Q4 Q1
2009 2008 2008
--------- --------- ---------
(in millions of Euros, except
where otherwise stated)
Pulp revenues EUR129.0 EUR161.0 EUR179.1
Energy revenues 10.6 11.0 7.7
Operating income (loss) (12.4) (21.4) 18.6
Operating EBITDA (loss) 1.1 (7.5) 32.8
Unrealized gain (loss) on
derivative instruments (15.0) (29.7) (7.9)
Foreign exchange gain
(loss) on debt (4.4) (0.9) 6.0
Net income (loss) attributable
to common shareholders (39.4) (59.0) 2.9
Net income (loss) per share
attributable to common
shareholders
Basic EUR(1.08) EUR(1.63) EUR0.08
Diluted EUR(1.08) EUR(1.63) EUR0.08
Summary Operating Highlights
Q1 Q4 Q1
2009 2008 2008
--------- --------- ---------
Pulp Production ('000 ADMTs) 345.6 338.9 360.9
Scheduled Production Downtime
('000 ADMTs) -- 21.0 1.5
Pulp Sales ('000 ADMTs) 336.7 364.1 348.2
NBSK pulp list price in Europe
(US$/ADMT) 585 698 880
NBSK pulp list price in Europe
(EUR/ADMT) 449 530 586
Average pulp sales realizations
(EUR/ADMT)(1) 377 436 510
Energy Production ('000 MWh) 356.3 348.8 364.9
Energy Sales ('000 MWh) 112.2 107.9 114.1
Average Spot Currency Exchange
Rates(2):
EUR / $ 0.7675 0.7591 0.6666
C$ / $ 1.2453 1.2118 1.0042
C$ / EUR 1.6217 1.5951 1.5057
(1) List price, less discounts and commissions. (2) Average Bank of Canada noon spot rates over the reporting period.
President's Comments
Mr. Jimmy S.H. Lee, President and Chairman, stated: "Our first quarter results, while very disappointing, were largely as expected and reflect the prevailing difficult economic environment. Pulp prices declined further in the first two months of 2009 although the stronger U.S. dollar in the period softened the impact of such decreases. In the quarter we recorded a non-cash provision of EUR4.6 million against our inventories. Beneficial to us in the quarter were lower fiber and freight costs along with the higher tariffs now in effect for excess energy sold from our German mills."
Mr. Lee continued: "Despite the severe market challenges, we continue to focus on improvements in areas of our business that we can control, including the implementation of cost reduction at our mills and initiatives to enhance and sustain liquidity. With the completion of the amendment to the project finance loan of our 74.9% owned subsidiary Stendal in the current quarter, we have been able to decisively increase the Stendal mill's liquidity. We are also in continuing negotiations with lenders with respect to the term financing for the "green" energy project at our Celgar mill."
Mr. Lee added: "As there has been a return of Chinese buyers to the market in the current quarter and the announcement of a price increase for April in China and Europe, there is some indication that certain markets may have bottomed out and stabilized. Despite these developments, we are cognizant that the renewed demand from China may be temporary and primarily motivated by current pricing. Significant volumes remain in global pulp distribution channels and need to be balanced by further production curtailments among producers. As a result we expect market conditions to remain difficult in the near-term."
Mr. Lee concluded: "Although there have been several temporary and permanent mill closures, because of sales of inventory from such idled mills, the effect of such reduced production has not yet been really reflected in balancing the market."
Three Months Ended March 31, 2009 Compared to Three Months Ended March 31, 2008
Pulp revenues for the three months ended March 31, 2009 decreased by approximately 28.0% to EUR129.0 million from EUR179.1 million in the comparative period of 2008, primarily due to the ongoing global economic crisis and its effect on world pulp markets. Revenues from the sale of excess energy increased by approximately 36.6% in the first quarter to EUR10.6 million from EUR7.7 million in the same quarter last year due to the higher biomass energy tariffs now in effect under Germany's Renewable Energy Resources Act.
Pulp production decreased to 345,620 ADMTs in the current quarter from 360,881 ADMTs in the same quarter of 2008 primarily due to seven days of unscheduled production downtime at our Celgar mill as a result of a temporary railway shutdown due to weather conditions. We took no scheduled maintenance downtime at our mills in the first three months of 2009 compared to one day in the same period of 2008.
Pulp sales volume decreased to 336,659 ADMTs in the current quarter from 348,176 ADMTs in the comparative period of 2008. Average pulp sales realizations decreased by approximately 26.1% to EUR377 per ADMT in the first quarter of 2009, compared to EUR510 per ADMT in the same period last year.
Costs and expenses in the first quarter of 2009 decreased to EUR152.0 million from EUR168.2 million in the comparative period of 2008.
As a result of continuing weak NBSK markets in the current quarter, we recorded additional non-cash provisions of EUR3.4 million and EUR1.2 million against our finished goods and fiber inventories, respectively.
On average, and including the effect of the non-cash inventory provision on our fiber inventories, our fiber costs decreased by approximately 10.4% in the first quarter of 2009 from the same period in 2008 primarily due to lower demand. We currently expect fiber prices to level off in the near term due to the effect of the ongoing sawmilling curtailments and harvesting reductions.
During the first quarter of 2009, our raw material inventories decreased to EUR26.5 million from EUR38.2 million at the end of the fourth quarter of 2008. Our pulp inventories increased by approximately 7.9% to EUR40.9 million in the first quarter of 2009 from EUR37.9 million at the end of the prior quarter.
For the first quarter of 2009, we recorded an operating loss of EUR12.4 million compared to operating income of EUR18.6 million in the comparative quarter of 2008, primarily due to lower price realizations and sales volume resulting from deteriorating market conditions.
Interest expense in the first quarter of 2009 decreased very marginally to EUR16.5 million from EUR16.6 million in the comparative quarter of 2008.
In the first three months of 2009 we recorded a loss of EUR3.2 million on the final disposition of certain investments previously owned by our Stendal mill. Such investments were held in an independently-managed fund created for purposes of investing the debt service reserve account funds under the mill's project finance facility.
Our Stendal mill recorded an unrealized loss of EUR15.0 million on our interest rate derivatives at the end of the current quarter, compared to an unrealized loss of EUR7.9 million in the same quarter of last year in large part due to the significant decrease in European interest rates. We recorded a foreign exchange loss on our debt of EUR4.4 million in the first quarter of 2009 compared to an unrealized gain of EUR6.0 million.
In the first quarter of 2009, the noncontrolling shareholder's interest in the Stendal mill's loss was EUR9.3 million, compared to EUR3.2 million in the same quarter last year.
In the first quarter of 2009, we reported Operating EBITDA of EUR1.1 million compared to EUR32.8 million in the first quarter of 2008 and an Operating EBITDA loss of EUR7.5 million in the fourth quarter of 2008. EBITDA in the current quarter includes non-cash inventory provisions of EUR4.6 million. Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and non-recurring capital asset impairment charges. Management uses Operating EBITDA as a benchmark measurement of its own operating results, and as a benchmark relative to its competitors. Management considers it to be a meaningful supplement to operating income as a performance measure primarily because depreciation expense and non-recurring capital asset impairment charges are not an actual cash cost, and depreciation expense varies widely from company to company in a manner that management considers largely independent of the underlying cost efficiency of their operating facilities. In addition, we believe Operating EBITDA is commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.
Operating EBITDA does not reflect the impact of a number of items that affect our net income, including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under GAAP, and should not be considered as an alternative to net income attributable to common shareholders or income from operations as a measure of performance, nor as an alternative to net cash from operating activities as a measure of liquidity. Operating EBITDA has significant limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. For a reconciliation of Operating EBITDA to net income (loss) attributable to common shareholders, see page 6 of the financial tables included in this press release.
We reported a net loss attributable to common shareholders for the first quarter of 2009 of EUR39.4 million, or a loss of EUR1.08 per basic and diluted share, which included an aggregate unrealized non-cash loss of EUR19.4 million on Stendal's interest rate derivative and foreign exchange losses on our debt. In the first quarter of 2008, net income attributable to common shareholders was EUR2.9 million, or EUR0.08 per basic and diluted share. As at March 31, 2009 and 2008, respectively, we had 36,422,487 and 36,285,027 common shares outstanding.
Liquidity and Capital Resources
In light of the continued volatile market environment and recessionary economic conditions, we are providing additional information concerning our liquidity and capital resources.
The following table is a summary of selected financial information for the periods indicated:
As at As at
March 31, Dec. 31,
2009 2008
--------- ---------
(in thousands)
Financial Position
Cash and cash equivalents EUR41,236 EUR42,452
Cash, restricted 3,531 13,000
Working capital 109,961 154,374
Property, plant and equipment 879,300 881,704
Total assets 1,113,541 1,151,600
Long-term liabilities 926,561 914,970
Total equity 78,385 132,103
As at March 31, 2009, our cash and cash equivalents were EUR41.2 million, working capital was EUR110.0 million and we had approximately EUR31.5 million in available undrawn lines of credit.
As at March 31, 2009, we had an aggregate amount of EUR522.8 million outstanding under the Stendal mill's project finance facility. We had also drawn approximately C$22.0 million under the C$40.0 million working capital facility for our Celgar mill and approximately EUR10.0 million under the EUR40.0 million working capital facility for our Rosenthal mill.
Restricted Group
The following table is a summary of selected financial information for the Restricted Group for the periods indicated:
As at As at
March 31, Dec. 31,
2009 2008
--------- ---------
(in thousands)
Restricted Group Financial Position
Cash and cash equivalents EUR28,682 EUR26,176
Working capital 73,683 101,490
Property, plant and equipment 354,777 351,009
Total assets 562,641 564,374
Long-term liabilities 316,826 309,235
Total equity 189,069 210,179
As at March 31, 2009, our Restricted Group had cash and cash equivalents of EUR28.7 million, working capital of EUR73.7 million and approximately EUR31.5 million in available undrawn lines of credit.
Earnings Release Call
In conjunction with this release, Mercer International Inc. will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for Thursday, April 30, 2009 at 10:00 AM (Eastern Daylight Time). Listeners can access the conference call live and archived through May 30, 2009, over the Internet at http://investor.shareholder.com/media/eventdetail.cfm?mediaid=36264&c=MERC&mediakey=957433ACFFF2F424B0AB33A05D209E5E&e=0 or through a link on the Company's News/Financial page at http://www.mercerint.com/s/NewsReleases.asp. Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software. A replay of this call will be available approximately two hours after the live call ends until May 7, 2009 at 11:59 PM (Eastern Daylight Time). The replay number is (800) 642-1687 for domestic callers or (706) 645-9291 for international callers, and the passcode is 94432276.
Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, please visit its web site at http://www.mercerint.com.
The preceding includes forward looking statements which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: the effects of the current economic and financial turmoil, the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.
MERCER INTERNATIONAL INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands of Euros)
March 31, Dec. 31,
2009 2008
------------- -------------
ASSETS
Current assets
Cash and cash equivalents EUR41,236 EUR42,452
Cash, restricted 3,531 13,000
Receivables 80,943 100,158
Inventories 89,761 98,457
Prepaid expenses and other 3,085 4,834
------------- -------------
Total current assets 218,556 258,901
------------- -------------
Long-term assets
Property, plant and equipment 879,300 881,704
Investments 71 419
Deferred note issuance and
other costs 8,852 4,011
Deferred income tax 3,231 3,036
Note receivable, less
current portion 3,531 3,529
------------- -------------
894,985 892,699
------------- -------------
Total assets EUR1,113,541 EUR1,151,600
============= =============
LIABILITIES
Current liabilities
Accounts payable and
accrued expenses EUR81,575 EUR87,517
Pension and other post-retirement
benefit obligations,
current portion 520 510
Debt, current portion 26,500 16,500
------------- -------------
Total current liabilities 108,595 104,527
------------- -------------
Long-term liabilities
Debt, less current portion 838,556 837,918
Unrealized interest rate
derivative losses 62,125 47,112
Pension and other post-retirement
benefit obligations 12,980 12,846
Capital leases and other 9,877 11,267
Deferred income tax 3,023 5,827
------------- -------------
926,561 914,970
------------- -------------
Total liabilities 1,035,156 1,019,497
------------- -------------
EQUITY
Shareholders' equity
Share capital 202,844 202,844
Paid-in capital (5,897) 299
Retained earnings (deficit) (74,396) (35,046)
Accumulated other
comprehensive loss (6,944) (1,872)
------------- -------------
Total shareholders' equity 115,607 166,225
------------- -------------
Noncontrolling interest (deficit) (37,222) (34,122)
------------- -------------
Total equity 78,385 132,103
------------- -------------
Total liabilities and equity EUR1,113,541 EUR1,151,600
============= =============
MERCER INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands of Euros, except per share data)
Three Months Ended
March 31,
----------------------------
2009 2008
------------- -------------
Revenues
Pulp revenue EUR129,033 EUR179,101
Energy revenue 10,539 7,715
------------- -------------
139,572 186,816
Costs and expenses
Operating costs 131,997 147,156
Operating depreciation
and amortization 13,401 14,121
------------- -------------
(5,826) 25,539
Selling, general and
administrative expenses 7,145 6,896
(Sale) purchase of
emission allowances (558) --
------------- -------------
Operating income (loss) (12,413) 18,643
------------- -------------
Other income (expense)
Interest expense (16,549) (16,620)
Investment income (loss) (3,202) 310
Foreign exchange gain (loss)
on debt (4,416) 6,031
Unrealized gain (loss) on
derivative instruments (15,013) (7,850)
------------- -------------
Total other income (expense) (39,180) (18,129)
------------- -------------
Net income (loss) before income taxes (51,593) 514
Income tax benefit (provision)
- current (49) 376
- deferred 3,031 (1,204)
------------- -------------
Net income (loss) (48,611) (314)
Less: net loss attributable to
noncontrolling interest 9,261 3,183
------------- -------------
Net income (loss) attributable to
common shareholders (39,350) 2,869
Retained earnings (deficit),
beginning of period (35,046) 37,419
------------- -------------
Retained earnings (deficit),
end of period EUR(74,396) EUR40,288
============= =============
Net income (loss) per share
attributable to common shareholders
Basic EUR(1.08) EUR0.08
============= =============
Diluted EUR(1.08) EUR0.08
============= =============
MERCER INTERNATIONAL INC.
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Balance Sheet
(Unaudited)
(In thousands of Euros)
The terms of the indenture governing our 9.25% senior unsecured notes require that we provide the results of operations and financial condition of Mercer International Inc. and our restricted subsidiaries under the indenture, collectively referred to as the "Restricted Group". As at and during the three months and year ended March 31,2009 and 2008, the Restricted Group was comprised of Mercer International Inc., our Rosenthal and Celgar mills and certain holding subsidiaries. The Restricted Group excludes the Stendal mill.
March 31, 2009
-------------------------------------------------------
Restricted Unrestricted Consolidated
Group Subsidiaries Eliminations Group
------------- ------------- ------------- -------------
ASSETS
Current assets
Cash and cash
equivalents EUR28,682 EUR12,554 EUR-- EUR41,236
Cash,
restricted -- 3,531 -- 3,531
Receivables 42,699 38,244 -- 80,943
Inventories 56,979 32,782 -- 89,761
Prepaid
expenses
and other 2,069 1,016 -- 3,085
------------- ------------- ------------- -------------
Total current
assets 130,429 88,127 -- 218,556
Property,
plant
and
equipment 354,777 524,523 -- 879,300
Other 3,664 5,259 -- 8,923
Deferred
income
tax 3,231 -- -- 3,231
Due from
unrestricted
group 67,009 -- (67,009) --
Note
receivable,
less current
portion 3,531 -- -- 3,531
------------- ------------- ------------- -------------
Total assets EUR562,641 EUR617,909 EUR(67,009) EUR1,113,541
============= ============= ============= =============
LIABILITIES
Current
liabilities
Accounts
payable
and accrued
expenses EUR46,226 EUR35,349 EUR-- EUR81,575
Pension and
other post-
retirement
benefit
obligations,
current
portion 520 -- -- 520
Debt, current
portion 10,000 16,500 -- 26,500
------------- ------------- ------------- -------------
Total current
liabilities 56,746 51,849 -- 108,595
Debt, less
current
portion 297,672 540,884 -- 838,556
Due to
restricted
group -- 67,009 (67,009) --
Unrealized
interest
rate
derivative
losses -- 62,125 -- 62,125
Pension and
other post-
retirement
benefit
obligations 12,980 -- -- 12,980
Capital
leases
and other 6,174 3,703 -- 9,877
Deferred
income
tax -- 3,023 -- 3,023
------------- ------------- ------------- -------------
Total
liabilities 373,572 728,593 (67,009) 1,035,156
------------- ------------- ------------- -------------
EQUITY
Total
shareholders'
equity
(deficit) 189,069 (73,462) -- 115,607
Noncontrolling
interest
(deficit) -- (37,222) -- (37,222)
------------- ------------- ------------- -------------
Total
liabilities
and equity EUR562,641 EUR617,909 EUR(67,009) EUR1,113,541
============= ============= ============= =============
MERCER INTERNATIONAL INC.
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Balance Sheet
(Unaudited)
(In thousands of Euros)
December 31, 2008
-------------------------------------------------------
Restricted Unrestricted Consolidated
Group Subsidiaries Eliminations Group
------------- ------------- ------------- -------------
ASSETS
Current assets
Cash and cash
equivalents EUR26,176 EUR16,276 EUR-- EUR42,452
Cash,
restricted -- 13,000 -- 13,000
Receivables 57,258 42,900 -- 100,158
Inventories 59,801 38,656 -- 98,457
Prepaid
expenses
and other 3,215 1,619 -- 4,834
------------- ------------- ------------- -------------
Total current
assets 146,450 112,451 -- 258,901
Property,
plant
and
equipment 351,009 530,695 -- 881,704
Other 4,425 5 -- 4,430
Deferred
income
tax 3,036 -- -- 3,036
Due from
unrestricted
group 55,925 -- (55,925) --
Note
receivable,
less current
portion 3,529 -- -- 3,529
------------- ------------- ------------- -------------
Total assets EUR564,374 EUR643,151 EUR(55,925) EUR1,151,600
============= ============= ============= =============
LIABILITIES
Current
liabilities
Accounts
payable
and accrued
expenses EUR44,450 EUR43,067 EUR-- EUR87,517
Pension and
other post-
retirement
benefit
obligations,
current
portion 510 -- -- 510
Debt, current
portion -- 16,500 -- 16,500
------------- ------------- ------------- -------------
Total current
liabilities 44,960 59,567 -- 104,527
Debt, less
current
portion 289,222 548,696 -- 837,918
Due to
restricted
group -- 55,925 (55,925) --
Unrealized
interest
rate
derivative
losses -- 47,112 -- 47,112
Pension and
other post-
retirement
benefit
obligations 12,846 -- -- 12,846
Capital
leases
and other 7,167 4,100 -- 11,267
Deferred
income tax -- 5,827 -- 5,827
------------- ------------- ------------- -------------
Total
liabilities 354,195 721,227 (55,925) 1,019,497
------------- ------------- ------------- -------------
EQUITY
Total
shareholders'
equity
(deficit) 210,179 (43,954) -- 166,225
Noncontrolling
interest
(deficit) -- (34,122) -- (34,122)
------------- ------------- ------------- -------------
Total
liabilities
and equity EUR564,374 EUR643,151 EUR(55,925) EUR1,151,600
============= ============= ============= =============
MERCER INTERNATIONAL INC.
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Statements of Operations
(Unaudited)
(In thousands of Euros)
Three Months Ended March 31, 2009
-------------------------------------------------------
Restricted Unrestricted Consolidated
Group Subsidiaries Eliminations Group
------------- ------------- ------------- -------------
Revenues EUR79,032 EUR60,540 EUR-- EUR139,572
------------- ------------- ------------- -------------
Operating costs 73,316 58,681 -- 131,997
Operating
depreciation
and
amortization 6,704 6,697 -- 13,401
Selling, general
and
administrative
expenses 4,422 2,165 -- 6,587
------------- ------------- ------------- -------------
84,442 67,543 -- 151,985
------------- ------------- ------------- -------------
Operating
income
(loss) (5,410) (7,003) -- (12,413)
------------- ------------- ------------- -------------
Other income
(expense)
Interest
expense (7,302) (10,356) 1,109 (16,549)
Investment
income (loss) 916 (3,009) (1,109) (3,202)
Foreign
exchange
gain (loss)
on debt (4,416) -- -- (4,416)
Derivative
instruments -- (15,013) -- (15,013)
------------- ------------- ------------- -------------
Total other
income
(expense) (10,802) (28,378) -- (39,180)
------------- ------------- ------------- -------------
Net income
(loss)
before
income
taxes (16,212) (35,381) -- (51,593)
Income tax
benefit
(provision) 208 2,774 -- 2,982
------------- ------------- ------------- -------------
Net income
(loss) (16,004) (32,607) -- (48,611)
Less: net
loss
attributable
to
noncontrolling
interest -- 9,261 -- 9,261
------------- ------------- ------------- -------------
Net income
(loss)
attribut-
able to
common
share-
holders EUR(16,004) EUR(23,346) EUR-- EUR(39,350)
============= ============= ============= =============
Three Months Ended March 31, 2008
-------------------------------------------------------
Restricted Unrestricted Consolidated
Group Subsidiaries Eliminations Group
------------- ------------- ------------- -------------
Revenues EUR104,588 EUR82,228 EUR-- EUR186,816
------------- ------------- ------------- -------------
Operating costs 81,142 66,014 -- 147,156
Operating
depreciation
and
amortization 7,421 6,700 -- 14,121
Selling, general
and
administrative
expenses 3,744 3,152 -- 6,896
------------- ------------- ------------- -------------
92,307 75,866 -- 168,173
------------- ------------- ------------- -------------
Operating
income
(loss) 12,281 6,362 -- 18,643
------------- ------------- ------------- -------------
Other income
(expense)
Interest
expense (6,712) (10,867) 959 (16,620)
Investment
income (loss) 1,736 (467) (959) 310
Foreign
exchange
gain (loss)
on debt 6,627 (596) -- 6,031
Derivative
instruments -- (7,850) -- (7,850)
------------- ------------- ------------- -------------
Total other
income
(expense) 1,651 (19,780) -- (18,129)
------------- ------------- ------------- -------------
Net income
(loss)
before
income
taxes 13,932 (13,418) -- 514
Income tax
benefit
(provision) (2,154) 1,326 -- (828)
------------- ------------- ------------- -------------
Net income
(loss) 11,778 (12,092) -- (314)
Less: net
loss
attributable
to
noncontrolling
interest -- 3,183 -- 3,183
------------- ------------- ------------- -------------
Net income
(loss)
attribut-
able to
common
share-
holders EUR11,778 EUR(8,909) EUR-- EUR2,869
============= ============= ============= =============
MERCER INTERNATIONAL INC.
COMPUTATION OF OPERATING EBITDA
(Unaudited)
(In thousands of Euros)
Three Months Ended
March 31,
----------------------------
2009 2008
------------ ------------
Net income (loss) attributable
to common shareholders EUR(39,350) EUR2,869
Net loss attributable to
noncontrolling interest (9,261) (3,183)
Income taxes (benefits) (2,982) 828
Interest expense 16,549 16,620
Investment (income) loss 3,202 (310)
Unrealized foreign exchange
(gain) loss on debt 4,416 (6,031)
Derivative financial instruments 15,013 7,850
------------ ------------
Operating income (loss) (12,413) 18,643
Add: Depreciation and
amortization 13,467 14,192
------------ ------------
Operating EBITDA(1) EUR1,054 EUR32,835
============ ============
(1) Operating EBITDA does not reflect the impact of a number of
items that affect our net income (loss) attributable to common
shareholders, including financing costs and the effect of
derivative instruments. Operating EBITDA is not a measure of
financial performance under accounting principles generally
accepted in the United States, and should not be considered as
an alternative to net income (loss) attributable to common
shareholders or income (loss) from operations as a measure of
performance, nor as an alternative to net cash from operating
activities as a measure of liquidity. Operating EBITDA has
significant limitations as an analytical tool, and should not be
considered in isolation, or as a substitute for analysis of our
results as reported under GAAP.
COMPUTATION OF RESTRICTED GROUP OPERATING EBITDA
(Unaudited)
(In thousands of Euros)
Three Months Ended
March 31,
----------------------------
2009 2008
------------ ------------
Restricted Group
Net income (loss) attributable
to common shareholders EUR(16,004) EUR11,778
Income taxes (benefits) (208) 2,154
Interest expense 7,302 6,712
Investment (income) loss (916) (1,736)
Unrealized foreign exchange
(gain) loss on debt 4,416 (6,627)
------------ ------------
Operating income (loss) (5,410) 12,281
Add: Depreciation and
amortization 6,770 7,492
------------ ------------
Operating EBITDA(1) EUR1,360 EUR19,773
============ ============
(1) Operating EBITDA does not reflect the impact of a number of
items that affect our net income (loss) attributable to common
shareholders, including financing costs and the effect of
derivative instruments. Operating EBITDA is not a measure of
financial performance under accounting principles generally
accepted in the United States, and should not be considered as
an alternative to net income (loss) attributable to common
shareholders or income (loss) from operations as a measure of
performance, nor as an alternative to net cash from operating
activities as a measure of liquidity. Operating EBITDA has
significant limitations as an analytical tool, and should not be
considered in isolation, or as a substitute for analysis of our
results as reported under GAAP.