NewPage
Holdings Inc. (NewPage) today reported its financial results for the second
quarter of 2013.
Net
sales in the second quarter of 2013 were $720 million compared to $759 million
in the second quarter of 2012. The decrease was primarily the result of
lower sales volume and lower average paper prices, partially offset by improved
mix. Net loss in the second quarter of 2013 was $13 million compared to net income of $84 million in the second quarter of 2012. The change in results was driven by bankruptcy-related items in the prior-year quarter, primarily associated with the reversal of $115 million of interest expense on the pre-petition debt.
Operating cash flows in the second quarter of 2013 were $19 million, which included $16 million of bankruptcy-related payments. Operating cash flows in the second quarter of 2012 were $96 million, which included $12 million of bankruptcy-related payments and $63 million representing 2011 post-petition First Lien Notes interest that was reversed into income as it was re-characterized as a principal reduction. For the six months ended June 30, 2013, the company used $23 million of cash in operations, which included $58 million of bankruptcy-related payments. For the six months ended June 30, 2012, the company used $48 million of cash in operations, which included a $38 million interest payment on pre-petition debt and $34 million of other bankruptcy-related payments. Any remaining bankruptcy-related payments are not expected to be significant.
Adjusted EBITDA (see reconciliation of net loss to EBITDA and Adjusted EBITDA below), was $50 million in the second quarter of 2013 compared to $57 million in the second quarter of 2012.
