KINGSEY FALLS, QC, Aug. 5 /CNW Telbec/ - Cascades Inc. ("Cascades") (CAS
on the Toronto stock exchange) reports a net loss excluding specific items(1)
of $11 million ($0.11 per share) compared to net earnings of $7 million ($0.07
per share) for the same quarter in 2007. When including specific items(1), the
net loss for the second quarter of 2008 amounted to $25 million ($0.25 per
share) compared to net earnings of $45 million ($0.45 per share) for the same
period in 2007.
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Financial Highlights
Selected consolidated information
(in millions of Canadian dollars, ----------------------------
except amounts per share) Q2/2008 Q2/2007 Q1/2008
------------------------------------------- ----------------------------
Sales 999 1,008 959
Operating income before depreciation and
amortization (OIBD)(1) 61 81 45
Operating income (loss) from continuing
operations 8 30 (6)
Net earnings (loss) (25) 45 (4)
per common share $(0.25) $0.45 $(0.04)
Cash flow from operations (adjusted) from
continuing operations(1) 36 46 17
per common share(1) $0.37 $0.46 $0.17
Excluding specific items(1)
Operating income before depreciation and
amortization (OIBD) 63 87 59
Operating income from continuing operations 10 36 8
Net earnings (loss) (11) 7 (9)
per common share $(0.11) $0.07 $(0.09)
Cash flow from operations (adjusted) from
continuing operations 42 48 26
per common share $0.43 $0.48 $0.26
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Note 1 - see the supplemental information on non-GAAP measures note.
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Additional highlights
- Decrease in profitability compared to last year largely explained by
the fact selling price increases and cost cutting measures were not
sufficient to offset cost inflation experienced since the beginning of
the year and the stronger Canadian dollar;
- Stable operating profits compared to Q1 2008 due to:
- Increased selling prices and higher shipments of converted products;
- Improved results in tissue and specialty products more than
offsetting significantly lower profitability in boxboard;
- Net income negatively impacted by the non cash net variation of
$13 million in the fair market value of hedging instruments on our US$
denominated debt;
- Norampac management acting proactively to implement major restructuring
and cost-cutting measures in the North American boxboard and folding
carton operations:
- Indefinite closure of the Toronto coated recycled boxboard mill,
effective at the latest by mid-September;
- Headcount reduction of more than 200 people by the end of 2008; and
- Cascades named amongst the best 50 corporate citizens in Canada by
Corporate Knights magazine for the second year in a row.
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Commenting on the quarterly results, Mr. Alain Lemaire, President and
Chief Executive Officer stated: "The business environment during the second
quarter deteriorated significantly in comparison to the same period last year.
Aggressive cost-cutting and restructuring throughout our business groups
together with increased selling prices were not sufficient to offset the
negative impact of sharply higher costs and difficult market conditions in our
boxboard operations. On a positive note we were encouraged by the second
quarter improvement of the tissue group as well as improving demand observed
late in the quarter in most of our business sectors. Moreover, during the
quarter Norampac moved quickly to initiate action plans aimed at returning the
boxboard group to higher profitability before the end of the year."
Three-month period ended June 30, 2008
--------------------------------------
In comparison with the same period last year, sales remained relatively
flat reflecting generally higher prices offset by lower shipments and the
impact of the appreciation of the CAN$.
Operating income from continuing operations amounted to $8 million
compared to $30 million achieved for the same period last year. When excluding
specific items, operating income from continuing operations amounted to
$10 million in comparison to $36 million for the same quarter in 2007.
Specific items include $7 million of unrealized gain on financial instruments,
$5 million of closure and restructuring costs, $3 million of impairment loss
on property, plant and equipment and a $1 million inventory adjustment
resulting from a business acquisition. The net loss for the quarter includes a
pre-tax $15 million foreign exchange loss on U.S. denominated debt ($0.13 per
share after-tax); The $0.45 net earnings per share for the second quarter of
2007 mainly included a foreign exchange gain on long-term debt of $0.21 per
share as well as a $0.15 per share gain reflecting the dilution of an equity
investment in Boralex (BLX on the Toronto stock exchange).
Six-month period ended June 30, 2008
------------------------------------
Sales decreased 2.5% during the first half of 2008 amounting to
$1.96 billion in comparison to the $2 billion achieved last year.
Operating income from continued operations amounted to $2 million compared
to $87 million achieved for the same period last year. Operating income from
continuing operations excluding specific items amounted to $18 million. This
amount compares to $69 million achieved in the first half of 2007. Specific
items mainly include $13 million of closure and restructuring costs, $3
million of impairment loss on property, plant and equipment, a $7 million loss
resulting from the transaction with Reno de Medici S.p.A. and a $7 million
unrealized gain on financial instruments.
Near term outlook
-----------------
Mr. Alain Lemaire, President and Chief Executive Officer added:
"Notwithstanding the general economic uncertainty, the gradual implementation
of previously announced price increases combined with the seasonal pick up in
demand allow us to be cautiously optimistic for the third quarter. The
successful turnaround of our North American boxboard operations is key to
improved future profitability and continues to be our top priority. The
management team at Norampac has a solid track record when it comes to
restructuring and we have every confidence that they will deliver on this
important objective. However, if improved results cannot be achieved rapidly
through restructuring, other strategic alternatives will be considered."
Dividend on Common Shares and normal course issuer bid
------------------------------------------------------
The Board of Cascades declared a quarterly dividend of $0.04 per share to
be paid September 19, 2008 to shareholders of record at the close of business
on September 5, 2008. This dividend paid by Cascades is an "eligible dividend"
as per the proposed changes to the Income Tax Act (Bill C-28, Canada). In
addition, in the first six months of the year, in accordance with its normal
course issuer bid, Cascades has purchased for cancellation 336,500 common
shares at an average price of $7.68 per share representing an aggregate amount
of approximately $2.6 million.
Supplemental information on non-GAAP measures
---------------------------------------------
Operating income, cash flow from operations and cash flow from operations
per share are not measures of performance under Canadian GAAP. The Company
includes operating income, cash flow from operations and cash flow from
operations per share because they are measures used by management to assess
the operating and financial performance of the Company's operating segments.
Additionally, the Company believes that these items provide additional
measures often used by investors to assess a company's operating performance
and its ability to meet debt service requirements. However, operating income,
cash flow from operations and cash flow from operations per share does not
represent, and should not be used as a substitute for net earnings or cash
flows from operating activities as determined in accordance with Canadian
GAAP, and they are not necessarily an indication of whether cash flow will be
sufficient to fund our cash requirements. In addition, our definition of
operating income, cash flow from operations and cash flow from operations per
share may differ from those of other companies. Cash flow from operations is
defined as cash flow from operating activities as determined in accordance
with Canadian GAAP excluding the change in working capital components and cash
flow from operations per share is determined by dividing cash flow from
operations by the weighted average number of common shares of the period.
Operating income excluding specific items, net earnings excluding specific
items, net earnings per common share excluding specific items, cash flow from
operations excluding specific items and cash flow from operations per share
excluding specific items are non-GAAP measures. The Company believes that it
is useful for investors to be aware of specific items that have adversely or
positively affected its GAAP measures, and that the above mentioned non-GAAP
measures provide investors with a measure of performance with which to compare
its results between periods without regard to these specific items. The
Company's measures excluding specific items have no standardized meaning
prescribed by GAAP and are not necessarily comparable to similar measures
presented by other companies and therefore should not be considered in
isolation.
Specific items are defined to include charges for impairment of assets,
charges for facility or machine closures, debt restructuring charges, gains or
losses on sale of business unit, unrealized gains or losses on derivative
financial instruments that do not qualify for hedge accounting, foreign
exchange gains or losses on long-term debt and other significant items of an
unusual or non-recurring nature.
Net earnings (loss), which is a performance measure defined by Canadian
GAAP is reconciled below to operating income (loss), operating income
excluding specific items and operating income before depreciation excluding
specific items:
----------------------------
(in millions of Canadian dollars) Q2/2008 Q2/2007 Q1/2008
------------------------------------------- ----------------------------
Net earnings (loss) (25) 45 (4)
Net earnings (loss) from discontinued
operations 1 - (19)
Non-controlling interest - - 1
Share of results of significantly influenced
companies - (17) (4)
Provision for (recovery of) income taxes (9) 1 (9)
Foreign exchange loss (gain) on long-term debt 15 (25) 5
Interest expense 26 26 24
----------------------------
Operating income (loss) 8 30 (6)
Specific items :
Inventory adjustment resulting from business
acquisition 1 - 1
Loss (gain) on disposals and other - 1 5
Impairment loss on property, plant and equipment 3 1 -
Closure and restructuring costs 5 - 8
Unrealized loss (gain) on financial instruments (7) 4 -
----------------------------
2 6 14
----------------------------
Operating income - excluding specific items 10 36 8
Depreciation and amortization 53 51 51
----------------------------
Operating income before depreciation and
amortization - excluding specific items 63 87 59
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Supplemental information on non-GAAP measures (cont'd)
The following table reconciles net earnings and net earnings per share to
net earnings excluding specific items and net earnings per share excluding
specific items:
(in millions of Canadian -------------------- ------------------------
dollars, except amounts Net earnings (loss)
per share Net earnings (loss) per share (1)
----------------------------------------------- ------------------------
Q2/ Q2/ Q1/ Q2/ Q2/ Q1/
2008 2007 2008 2008 2007 2008
--------------------- ------------------------
As per GAAP (25) 45 (4) $(0.25) $0.45 $(0.04)
Specific items :
Inventory adjustment
resulting from business
acquisition 1 - 1 $ - $ - $ 0.01
Loss (gain) on disposals
and other - 1 5 $ - $ - $ 0.05
Impairment loss on
property, plant and
equipment 3 1 - $ 0.02 $ 0.01 $ -
Closure and restructuring
costs 5 - 8 $ 0.04 $ - $ 0.05
Unrealized loss (gain) on
financial instruments (7) 4 - $(0.06) $ 0.03 $ -
Foreign exchange loss
(gain) on long-term debt 15 (25) 5 $ 0.13 $(0.21) $ 0.04
Share of results of
significantly influenced
companies - (15) - $ - $(0.15) $ -
Loss (gain) included in
discontinued operations 1 (4) (24) $ 0.01 $(0.03) $(0.20)
Adjustment of statutory
tax rate - (3) - $ - $(0.03) $ -
Tax effect on specific
items (4) 3 -
--------------------- ------------------------
14 (38) (5) $ 0.14 $(0.38) $(0.05)
--------------------- ------------------------
Excluding specific items (11) 7 (9) $(0.11) $0.07 $(0.09)
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Note 1 - specific amounts per share are calculated on an after-tax basis.
The following table reconciles cash flow from operations and cash flow
from operations per share to cash flow from operations excluding specific
items and cash flow from operations per share excluding specific items:
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(in millions of dollars, Cash flow from Cash flow from
except amounts per share) operations operations per share
--------------------- ------------------------
Q2/ Q2/ Q1/ Q2/ Q2/ Q1/
2008 2007 2008 2008 2007 2008
----------------------------------------------- ------------------------
Cash flow provided by
(used for) operating
activities 48 1 (31)
Changes in non-cash
working capital
components (12) 45 48
--------------------- ------------------------
Cash flow (adjusted) from
operations 36 46 17 $0.37 $0.46 $0.17
Specific items :
Inventory adjustment
resulting from business
acquisition 1 - 1 $0.01 - $0.01
Loss (gain) on disposals
and other - 2 - - $0.02 -
Closure and restructuring
costs, net of current
income tax 5 - 8 $0.05 - $0.08
--------------------- ------------------------
Excluding specific items 42 48 26 $0.43 $0.48 $0.26
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Founded in 1964, Cascades produces, converts and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs close to
14,000 employees who work in more than 100 modern and flexible production
units located in North America and Europe. Cascades' management philosophy,
its more than 40 years of experience in recycling, its continued efforts in
research and development are strengths which enable the company to create new
products for its customers. The Cascades shares trade on the Toronto stock
exchange under the ticker symbol CAS.
Certain statements in this release, including statements regarding future
results and performance, are forward-looking statements (as such term is
defined under the Private Securities Litigation Reform Act of 1995) based on
current expectations. The accuracy of such statements is subject to a number
of risks, uncertainties and assumptions that may cause actual results to
differ materially from those projected, including, but not limited to, the
effect of general economic conditions, decreases in demand for the Company's
products, increases in raw material costs, fluctuations in selling prices and
adverse changes in general market and industry conditions and other factors
listed in the Company's Securities and Exchange Commission filings.
Consolidated Balance Sheets
(in millions of Canadian dollars)
As at As at
June December
30, 31,
2008 2007
-----------------------------------
Assets (unaudited)
Current assets
Cash and cash equivalents 21 25
Accounts receivable 685 624
Inventories 548 555
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1,254 1,204
Property, plant and equipment 1,939 1,886
Intangible assets 127 130
Other assets 261 237
Goodwill 316 312
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3,897 3,769
-----------------------------------
-----------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Bank loans and advances 70 47
Accounts payable and accrued liabilities 593 572
Current portion of long-term debt 9 4
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672 623
Long-term debt 1,662 1,570
Other liabilities 352 377
-----------------------------------
2,686 2,570
Shareholders' Equity
Capital stock 516 517
Retained earnings 690 725
Accumulated other comprehensive income (loss) 5 (43)
-----------------------------------
1,211 1,199
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3,897 3,769
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Consolidated Statements of Earnings (Loss)
(in millions of Canadian dollars,
except per share amounts)
(unaudited)
For the 3-month For the 6-month
periods ended June 30, periods ended June 30,
2008 2007 2008 2007
-----------------------------------------------
Sales 999 1,008 1,958 2,008
Cost of sales and expenses
Cost of sales 843 821 1,648 1,642
Depreciation and amortization 53 51 104 104
Selling and administrative
expenses 94 101 191 203
Losses (gains) on disposal - 1 5 (24)
Impairment and other
restructuring costs 8 1 16 3
Loss (gain) on financial
instruments (7) 3 (8) (7)
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991 978 1,956 1,921
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Operating income from
continuing operations 8 30 2 87
Interest expense 26 26 50 52
Foreign exchange loss (gain)
on long-term debt 15 (25) 20 (29)
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(33) 29 (68) 64
Provision for (recovery of)
income taxes (9) 1 (18) 15
Share of results of
significantly influenced
companies and dilution gain - (17) (4) (21)
Non-controlling interest - - 1 1
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Net earnings (loss) from
continuing operations (24) 45 (47) 69
Net earnings (loss) from
discontinued operations (1) - 18 (2)
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Net earnings (loss) for the
period (25) 45 (29) 67
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Basic and diluted net earnings
(loss) from continuing
operations
per common share ($0.24) $0.45 ($0.47) $0.69
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Basic and diluted net
earnings (loss) per
common share ($0.25) $0.45 ($0.29) $0.67
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Weighted average number
of common shares
outstanding 98,851,585 99,291,649 98,946,693 99,379,774
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Consolidated Statements of Shareholders' Equity
(in millions of Canadian dollars)
(unaudited)
For the 6-month period ended June 30,
2008
---------------------------------------------
Accumulated
other
compre-
hensive Share-
Capital Retained income holders'
stock earnings (loss) Equity
---------------------------------------------
Balance - Beginning of period 517 725 (43) 1,199
Cumulative impact of accounting
changes - 3 - 3
---------------------------------------------
Restated balance - Beginning of
period 517 728 (43) 1,202
Comprehensive income:
Net loss for the period - (29) - (29)
Change in foreign currency
translation of self-
sustaining foreign
subsidiaries, net of
related hedging activities - - 43 43
Change in fair value of
foreign exchange forward
contracts designated as
cash flow hedges - - (2) (2)
Change in fair value of
commodity derivative
financial instruments
designated as cash flow
hedges - - 7 7
------------
Comprehensive income for the
period 19
------------
Dividends - (8) - (8)
Redemption of common shares (1) (1) - (2)
---------------------------------------------
Balance - End of period 516 690 5 1,211
---------------------------------------------
---------------------------------------------
For the 6-month period ended June 30,
2007
---------------------------------------------
Accumulated
other
compre-
hensive Share-
Capital Retained income holders'
stock earnings (loss) Equity
---------------------------------------------
Balance - Beginning of period 517 649 (8) 1,158
Comprehensive income:
Net earnings for the period - 67 - 67
Change in foreign currency
translation of self-
sustaining foreign
subsidiaries, net of
related hedging activities - - (39) (39)
Change in fair value of
foreign exchange forward
contracts designated as
cash flow hedges - - 3 3
Change in fair value of
commodity derivative
financial instruments
designated as cash flow
hedges - - 1 1
------------
Comprehensive income for the
period 32
------------
Dividends - (8) - (8)
Adjustment related to stock
options 2 - - 2
Redemption of common shares (2) (2) - (4)
---------------------------------------------
Balance - End of period 517 706 (43) 1,180
---------------------------------------------
---------------------------------------------
Consolidated Statements of Cash Flows
(in millions of Canadian dollars)
(unaudited)
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
OPERATING ACTIVITIES FROM
CONTINUING OPERATIONS
Net earnings (loss) from
continuing operations (24) 45 (47) 69
Adjustments for:
Depreciation and amortization 53 51 104 104
Losses (gains) on disposal - (1) 5 (26)
Impairment and other
restructuring costs 3 1 3 1
Unrealized loss (gain) on
financial instruments (7) 4 (7) (3)
Foreign exchange loss (gain)
on long-term debt 15 (25) 20 (29)
Future income taxes (13) (7) (33) (3)
Share of results of
significantly influenced
companies and dilution gain - (17) (4) (21)
Non-controlling interest - - 1 1
Others (6) (5) (4) (6)
Early settlement of natural
gaz contracts 15 - 15 -
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36 46 53 87
Change in non-cash working
capital components 12 (45) (36) (123)
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48 1 17 (36)
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INVESTING ACTIVITIES FROM
CONTINUING OPERATIONS
Purchases of property, plant
and equipment (42) (33) (83) (64)
Proceed from disposal of
property, plant and equipment 5 7 5 7
Increase in other assets 3 1 2 -
Cash of a joint venture - - 6 -
Business disposal, net of
cash disposed - - - 37
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(34) (25) (70) (20)
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FINANCING ACTIVITIES FROM
CONTINUING OPERATIONS
Bank loans and advances (20) 6 (5) 15
Change in revolving credit
facilities 11 23 22 67
Payments of other long-term
debt (5) (1) (6) (4)
Net proceeds from issuance of
common shares - 1 - 1
Redemption of common shares - (1) (2) (4)
Dividends (4) (4) (8) (8)
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(18) 24 1 67
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Change in cash and cash
equivalents during the period
from continuing operations (4) - (52) 11
Change in cash and cash
equivalents from discontinued
operations, including proceeds
on disposal 8 (8) 43 (19)
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Net change in cash and cash
equivalents during the period 4 (8) (9) (8)
Translation adjustments on cash
and cash equivalents (1) (6) 5 (7)
Cash and cash equivalents -
Beginning of period 18 33 25 34
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Cash and cash equivalents -
End of period 21 19 21 19
---------------------------------------------
---------------------------------------------
Selected Segmented Information
(in millions of Canadian dollars)
(unaudited)
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
Sales
Packaging products
Boxboard
Manufacturing 184 206 379 407
Converting 170 177 328 346
Eliminations and others (23) (31) (47) (57)
---------------------------------------------
331 352 660 696
Containerboard
Manufacturing 150 152 304 306
Converting 246 256 473 495
Eliminations and others (95) (101) (185) (200)
---------------------------------------------
301 307 592 601
Specialty products
Manufacturing 76 81 152 167
Converting 67 58 130 117
Recovery, deinked pulp
and eliminations 75 72 145 142
---------------------------------------------
218 211 427 426
Eliminations (25) (29) (53) (56)
---------------------------------------------
825 841 1,626 1,667
Tissue papers
Manufacturing and converting 184 180 354 366
Eliminations (10) (13) (22) (25)
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Consolidated total 999 1,008 1,958 2,008
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Selected Segmented Information
(in millions of Canadian dollars)
(unaudited)
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
Operating income (loss) before
depreciation and amortization
from continuing operations
Packaging products
Boxboard
Manufacturing (10) (1) (16) (5)
Converting 12 13 24 51
Others (3) - (10) (1)
---------------------------------------------
(1) 12 (2) 45
Containerboard
Manufacturing 10 14 27 35
Converting 17 20 31 35
Others - 3 3 6
---------------------------------------------
27 37 61 76
Specialty products
Manufacturing - (1) (1) 3
Converting 8 5 13 12
Recovery, deinked pulp
and others 6 7 11 14
---------------------------------------------
14 11 23 29
---------------------------------------------
40 60 82 150
Tissue papers
Manufacturing and
converting 14 16 26 35
Corporate 7 5 (2) 6
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Operating income before
depreciation and amortization
from continuing operations
61 81 106 191
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Depreciation and
amortization
Boxboard (19) (16) (35) (33)
Containerboard (16) (16) (32) (32)
Specialty products (8) (8) (16) (16)
Tissue papers (8) (9) (16) (18)
Corporate and eliminations (2) (2) (5) (5)
---------------------------------------------
(53) (51) (104) (104)
---------------------------------------------
Operating income from
continuing operations 8 30 2 87
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Selected Segmented Information
(in millions of Canadian dollars)
(unaudited)
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
Purchases of property,
plant and equipment
Packaging products
Boxboard
Manufacturing 3 4 7 7
Converting 7 9 16 18
---------------------------------------------
10 13 23 25
Containerboard
Manufacturing 2 4 4 5
Converting 7 1 11 4
---------------------------------------------
9 5 15 9
Specialty products
Manufacturing 2 2 3 5
Converting 2 2 3 4
Recovery, deinked pulp
and others 9 - 10 1
---------------------------------------------
13 4 16 10
---------------------------------------------
32 22 54 44
Tissue papers
Manufacturing and converting 8 9 18 19
Corporate 2 2 4 4
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Consolidated total 42 33 76 67
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Purchases of property, plant
and equipment included in
accounts payable
Beginning of period 10 13 17 10
End of period (10) (13) (10) (13)
-------------------------------------------------------------------------
Total investing activities 42 33 83 64
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Additional information
(in millions of Canadian dollars, except shipments and share information)
(unaudited)
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
Common shares -
Toronto Stock Exchange
High $8.45 $13.05 $8.90 $15.80
Low $6.59 $11.00 $6.59 $11.00
Volume 8,226,000 20,318,000 15,646,000 39,764,000
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Shipments of manufacturing
and converting products
(in thousands of short tons)
Packaging products
Boxboard 277 313 569 614
Containerboard 342 366 690 717
Specialty products 115 114 231 229
Tissue papers 116 112 228 221
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Supplemental information on non-GAAP measure
Operating income before depreciation and amortization and operating income
are not measures of performance under Canadian generally accepted accounting
principles ("GAAP"). The Company includes operating income before depreciation
and amortization and operating income because they are the measures used by
management to assess the operating and financial performance of the Company's
operating segments. As well, the Company believes that operating income before
depreciation and amortization and operating income provides an additional
measure often used by investors to assess a company's operating performance
and its ability to meet debt service requirements. However, operating income
before depreciation and amortization and operating income do not represent,
and should not be used as a substitute for net earnings or cash flows from
operations as determined in accordance with Canadian GAAP and operating income
before depreciation and amortization and operating income are not necessarily
an indication of whether cash flow will be sufficient to fund our cash
requirements. In addition, our definition of operating income before
depreciation and amortization and operating income may differ from that of
other companies.
Net earnings (loss), which is a performance measure defined by Canadian
GAAP is reconcilied below to operating income (loss) and to operating income
before depreciation and amortization:
For the 3-month For the 6-month
periods ended periods ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------
Net earnings (loss) for
the period (25) 45 (29) 67
Net earnings (loss) from
discontinued operations 1 - (18) 2
Non-controlling interest - - 1 1
Share of results of
significantly influenced
companies and dilution gain - (17) (4) (21)
Provision for (recovery of)
income taxes (9) 1 (18) 15
Foreign exchange loss (gain)
on long-term debt 15 (25) 20 (29)
Interest expense 26 26 50 52
---------------------------------------------
Operating income from
continuing operations 8 30 2 87
Depreciation and amortization 53 51 104 104
---------------------------------------------
Operating income before
depreciation and amortization 61 81 106 191
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