NewPage recently 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.
"The results for the second quarter and first half of the year were in line with our expectations. Lower costs offset the impact of weak North American demand and lower pricing for our coated paper products," said George F. Martin, president and chief executive officer for NewPage. "We continue to align our product offerings to meet the changing needs of our customers and believe we are well positioned for the current competitive environment, with a highly efficient cost structure and a flexible, strategically placed mill platform."
NewPage ended the second quarter with $271 million of available liquidity, consisting of $267 million of availability under the revolving credit facility and $4 million of available cash and cash equivalents.
NewPage is a leading producer of printing and specialty papers in North America with $3.1 billion in net sales for the year ended December 31, 2012.
