WPP » Topics » Liquidity and Capital Resources

This excerpt taken from the WPP 10-Q filed May 11, 2009.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Three Months Ended

 

March 31,

(all dollar amounts in thousands)

2009

2008

 

 

 

Net cash provided by (used in) operating activities

$  7,489

 

$ (4,699)

 

Capital expenditures

20,813

 

6,944 

 


Comparing the first three months of 2009 with the same period in 2008, cash provided by (used in) operating activities increased reflecting higher cash earnings that were tempered by an increased investment in working capital.  


Capital spending for the first three months of 2009 was $20.8 million compared to $6.9 million during the first three months of 2008.  The increase in capital expenditures in the first quarter of 2009 as compared to the same period in 2008 is due to the $32 million towel machine rebuild in our Towel & Tissue segment and $15 million fiber handling project at Printing & Writing’s Brokaw, Wisconsin mill.  The towel machine rebuild was completed on schedule during the first quarter of 2009 and the fiber handling project is expected to be completed during the second quarter of 2009.  Total capital spending for the full-year of 2009 is expected to be approximately $45 million.


During 2005, we announced our intent to sell approximately 42,000 acres of timberlands, at values expected to result in an after-tax gain of $29 million.  Since introducing the timberland sales program, we have sold approximately 25,000 acres and have realized after-tax earnings of approximately $22.2 million.  During the first quarter of 2009, we sold 80 acres of timberlands, resulting in an after-tax gain of less than $0.1 million, compared to sales of approximately 1,300 acres of timberlands, resulting in an after-tax gain of $1.3 million, during the first quarter of 2008.  A total of approximately 17,000 acres remains in the timberland sales program.  We continue to execute our timberland sales program, although the pace of timberland sales has slowed as a result of the weakened economy.  We have not committed to implement additional timberland sales programs in the future.  Gains on sales of timberlands are included in cost of sales in the Condensed Consolidated Statements of Operations.  For additional information on timberland sales gains, please refer to “Note 7 – Property, Plant, and Equipment” in the Notes to Condensed Consolidated Financial Statements.




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Debt and Equity

 

March 31,

December 31,

(all dollar amounts in thousands)

2009

2008

 

 

 

 

 

Current maturities of long-term debt

$  16,044

 

$         51

 

Long-term debt

200,168

 

191,963

 

Total debt

216,212

 

192,014

 

Stockholders’ equity

207,700

 

207,581

 

Total capitalization

423,912

 

399,595

 

Total debt/capitalization ratio

51%

 

48%

 


As of March 31, 2009, total debt increased $24.2 million from the $192.0 million borrowed at December 31, 2008.  The increase in debt in the first quarter of 2009 is primarily due to significant capital expenditures related to the towel machine rebuild in our Towel & Tissue segment and the fiber handling project at our Printing & Writing’s Brokaw, Wisconsin mill, as well as cash costs related to our restructuring initiatives.  We expect our debt levels to decline over the balance of 2009 as capital spending eases and the benefits of cost reduction and cash conservation actions build.


On March 27, 2009, we amended our existing $165 million unsecured revolving-credit and the $103.5 million of unsecured private placement note agreements.  Under the amendments, the minimum net worth covenant was adjusted to eliminate the impact of accumulated other comprehensive income or loss up to $70 million.  At the time of the amendment to the agreements, we were in full compliance with the existing terms of all financial and other covenants under the agreements.  At March 31, 2009, we were in compliance with all required covenants and expect to remain in full compliance throughout the remainder of 2009.


At March 31, 2009, the amount of commercial paper outstanding and $52.5 million of the total $68.5 million unsecured private placement notes maturing on August 31, 2009 were classified as long-term on our Condensed Consolidated Balance Sheets as we have the ability and intent to refinance that portion of the maturing notes on a long-term basis under the revolving-credit agreement.  The remaining $16.0 million of unsecured private placement notes maturing on August 31, 2009, was included in current maturities of long-term debt on the Condensed Consolidated Balance Sheets at March 31, 2009.


In addition, as approved by our Board of Directors, we are pursuing additional borrowings of up to $15 million of secured debt to provide increased credit availability.  We believe that the additional borrowings, available credit under our credit agreements, and cash provided by operations will be sufficient to meet our cash flow needs for debt maturities, working capital, and investing activities during the remainder of 2009.


At December 31, 2008, there were approximately 2.0 million shares available for repurchase through an authorization approved by our Board of Directors in 2008.  There were no repurchases during the first quarter of 2009.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We do not intend to repurchase shares in the near future.




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Dividends


On December 17, 2008, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 17, 2009, to shareholders of record on February 2, 2009.  On March 31, 2009, we announced the suspension of cash dividends in order to conserve cash and focus on debt reduction.  The suspension of dividends will result in cash savings of more than $16 million annually.


This excerpt taken from the WPP 10-Q filed Nov 5, 2008.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Nine Months Ended September 30,

(all dollar amounts in thousands)

2008

2007

   

Cash provided by operating activities

$  8,180

 

$ 32,146

 

Capital expenditures

24,715

 

19,196

 


Cash provided by operating activities was $8.2 million for the nine months ended September 30, 2008, compared to $32.1 million during the same period in 2007.  The decline in the year-over-year comparisons of cash provided by operating activities was primarily due to a reduction in net earnings during the respective time periods, partially offset by increases in non-cash charges primarily related to property, plant, and equipment, and slight improvements in working capital efficiencies realized in 2008.


We have established an average internal rate of return target of 17% on all capital projects approved in 2008.  Projects approved during the first nine months of the year are expected to meet or exceed this target. Capital spending for the first nine months of 2008 was $24.7 million compared to $19.2 million during the first nine months of 2007.  Total capital spending for the full-year of 2008 is expected to be approximately $40 million.


During 2005, we announced our intent to sell approximately 42,000 acres of timberlands, at values expected to result in after-tax earnings of $29 million.  Since introducing the timberland sales program, we have sold approximately 24,200 acres and have realized after-tax earnings of approximately $21.7 million.  During the third quarter of 2008, we sold approximately 1,600 acres of timberlands, resulting in an after-tax gain of $1.4 million.  During the third quarter of 2007, we sold approximately 1,600 acres of timberlands, resulting in an after-tax gain of $1.8 million.  Year-to-date, we have sold approximately 3,800 acres of timberlands, resulting in an after-tax gain of $3.4 million, compared to sales of approximately 3,500 acres of timberlands, resulting in an after-tax gain of $4.0 million, during the first nine months of 2007.  We continue to execute our timberland sales program, although the pace of timberland sales has slowed in recent quarters as a result of weakening economic conditions.  We have not committed to implement additional timberland sales programs in the future. Gains on sales of timberlands are included in cost of sales in the Condensed Consolidated Statements of Operations.  For additional information on timberland sales gains, please refer to “Note 9 – Property, Plant, and Equipment” in the Notes to Condensed Consolidated Financial Statements.



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Debt and Equity

 

September 30,

December 31,

(all dollar amounts in thousands)

2008

2007

   

Short-term debt

$        102

 

$        175

 

Long-term debt

156,177

 

139,358

 

Total debt

156,279

 

139,533

 

Stockholders’ equity

250,398

 

280,915

 

Total capitalization

406,677

 

420,448

 

Long-term debt/capitalization ratio

38%

 

33%

 


As of September 30, 2008, long-term debt increased $16.8 million from the $139.4 million borrowed at December 31, 2007. On August 20, 2008, we amended our existing $125 million unsecured revolving-credit agreement that will expire on July 27, 2011, to increase the aggregate commitments under the revolving-credit agreement to $165 million.  As of September 30, 2008, we had $15.0 million in outstanding borrowings under this agreement.  In addition, at September 30, 2008, we had $17.4 million of commercial paper outstanding under an existing unrated commercial paper placement agreement with a bank.  This agreement requires unused credit availability under our $165 million unsecured revolving-credit agreement equal to the amount of outstanding commercial paper.  The amount of commercial paper outstanding at September 30, 2008, and the $68.5 million of unsecured private placement notes maturing on August 31, 2009, has been classified as long-term on our Condensed Consolidated Balance Sheets as we intend and have the ability to refinance the obligations under the revolving-credit agreement.


On September 30, 2008, we had approximately $112.9 million available borrowing capacity under the bank facility that expires on July 27, 2011.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, and fund dividend payments to shareholders.


At December 31, 2007, there were approximately 0.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  In February 2008, our Board of Directors authorized the repurchase of an additional 2.5 million shares of Wausau Paper common stock.  Under these authorizations, we have repurchased 1,033,000 shares during the nine months ended September 30, 2008, at a total cost of approximately $8.5 million.  There were no repurchases during the third quarter of 2008.  At September 30, 2008, there are approximately 2.0 million shares available for repurchase under these authorizations.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We do not intend to repurchase shares in the near future.




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Dividends


On December 19, 2007, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2008, to shareholders of record on February 1, 2008.  On April 17, 2008, the Board of Director’s declared a cash dividend in the amount of $0.085 per share.  The dividend was paid on May 15, 2008, to shareholders of record on May 1, 2008.  At a meeting held on June 12, 2008, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on August 15, 2008, to shareholders of record on August 1, 2008.  At a meeting held on October 17, 2008, the Board of Directors declared a quarterly cash dividend of $0.085 per common share which is payable on November 17, 2008, to shareholders of record on November 3, 2008.


This excerpt taken from the WPP 10-Q filed Aug 6, 2008.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures


 

Six Months Ended June 30,

(all dollar amounts in thousands)

2008

2007

   

Cash provided by operating activities

$  8,706   

$12,461   

Capital expenditures

14,362   

13,132   


The reduction in net cash provided by operating activities for the six months ended June 30, 2008, compared to June 30, 2007, was primarily due to a reduction in net earnings offset by improvements in working capital efficiencies realized in 2008.  


We have established an average internal rate of return target of 17% on all capital projects approved in 2008.  Projects approved during the first six months of the year are expected to meet or exceed this target. Capital spending for the first six months of 2008 was $14.4 million compared to $13.1 million during the first six months of 2007.  Total capital spending for the full-year of 2008 is expected to be approximately $50 million.


During 2005, we announced our intent to sell approximately 42,000 acres of timberlands, at values expected to result in after-tax earnings of $29 million.  Since introducing the timberland sales program, we have sold approximately 22,500 acres and have realized after-tax earnings of approximately $20.3 million.  During the second quarter of 2008, we sold approximately 900 acres of timberlands, resulting in an after-tax gain of $0.8 million, compared to sales of approximately 1,400 acres of timberlands, resulting in an after-tax gain of $1.8 million, during the same period of 2007.  Year-to-date, we have sold approximately 2,200 acres of timberlands, resulting in an after-tax gain of $2.1 million, compared to sales of approximately 1,900 acres of timberlands, resulting in an after-tax gain of $2.2 million, during the first six months of 2007.  We expect our timberland sales program to continue at a pace that will allow for completion of our sales program over the next two years.  We have not committed to implement additional timberland sales programs in the future. Gains on sales of timberlands are included in cost of sales in the Condensed Consolidated Statements of Operations.  For additional information on timberland sales gains, please refer to “Note 9 – Property, Plant, and Equipment” in the Notes to Condensed Consolidated Financial Statements.




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Debt and Equity


(all dollar amounts in thousands)

June 30,

December 31,

 

2008

2007

   

Short-term debt

$       136

 

$       175

 

Long-term debt

152,300

 

139,358

 

Total debt

152,436

 

139,533

 

Stockholders’ equity

246,945

 

280,915

 

Total capitalization

399,381

 

420,448

 

Long-term debt/capitalization ratio

38%

 

33%

 


As of June 30, 2008, long-term debt increased $12.9 million from the $139.4 million borrowed at December 31, 2007. We had $18.0 million in outstanding borrowings under our $125 million unsecured revolving-credit agreement that expires July 27, 2011.  In addition, at June 30, 2008, we had $10.4 million of commercial paper outstanding under an existing unrated commercial paper placement agreement with a bank.  This agreement requires unused credit availability under our $125 million unsecured revolving-credit agreement equal to the amount of outstanding commercial paper. The amount of commercial paper outstanding at June 30, 2008, has been classified as long-term on our Condensed Consolidated Balance Sheets as we intend and have the ability to refinance the obligations under the revolving-credit agreement.


On June 30, 2008, we had approximately $77.0 million available borrowing capacity under a bank facility that expires on July 27, 2011.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, and fund dividend payments to shareholders.


At December 31, 2007, there were approximately 0.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  In February 2008, our Board of Directors authorized the repurchase of an additional 2.5 million shares of Wausau Paper common stock.  Under these authorizations, we have repurchased 1,033,000 shares during the six months ended June 30, 2008, at a total cost of approximately $8.5 million.  At June 30, 2008, there are approximately 2.0 million shares available for repurchase.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We intend to significantly reduce or eliminate share repurchases over the next several quarters.




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Dividends


On December 19, 2007, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2008, to shareholders of record on February 1, 2008.  On April 17, 2008, the Board of Director’s declared a cash dividend in the amount of $0.085 per share.  The dividend was paid on May 15, 2008, to shareholders of record on May 1, 2008.  At a meeting held on June 12, 2008, the Board of Directors declared a quarterly cash dividend of $0.085 per common share which is payable on August 15, 2008, to shareholders of record on August 1, 2008.


This excerpt taken from the WPP 10-Q filed May 9, 2008.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Three Months Ended

 

March 31,

(all dollar amounts in thousands)

2008

2007

   

Cash used in operating activities

$ 4,699

$ 6,355

Capital expenditures

   6,944

   5,986


The change in net cash used in operating activities at March 31, 2008 and March 31, 2007, was primarily due to a reduction in net earnings and improvements in working capital efficiencies during the first quarter of 2008 as compared to the first quarter of 2007.  


We have established an average internal rate of return target of 17% on all capital projects approved in 2008.  Projects approved during the first three months of the year are expected to meet or exceed this target. Capital spending for the first three months of 2008 was $6.9 million compared to $6.0 million during the first three months of 2007.  Total capital spending for the full-year of 2008 is expected to be approximately $45 million.


During 2005, we announced our intent to sell approximately 42,000 acres of timberlands, at values expected to result in an after-tax gain of $29 million.  Since introducing the timberland sales program, we have sold approximately 21,700 acres and have realized after-tax earnings of approximately $19.5 million.  During the first quarter of 2008, we sold approximately 1,300 acres of timberlands, resulting in an after-tax gain of $1.3 million, compared to sales of approximately 500 acres of timberlands, resulting in an after-tax gain of $0.4 million, during the first quarter of 2007.  We expect our timberland sales program to continue at a pace that will allow for completion of our sales program over the next two years.  We have not committed to implement additional timberland sales programs in the future.  Gains on sales of timberlands are included in cost of sales in the Condensed Consolidated Statements of Operations.  For additional information on timberland sales gains, please refer to “Note 9 – Property, Plant, and Equipment” in the Notes to Condensed Consolidated Financial Statements.




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Debt and Equity

 

March 31,

December 31,

(all dollar amounts in thousands)

2008

2007

     

Short-term debt

$         159

 

$         175

 

Long-term debt

151,648

 

139,358

 

Total debt

151,807

 

139,533

 

Stockholders’ equity

268,394

 

280,915

 

Total capitalization

420,201

 

420,448

 

Long-term debt/capitalization ratio

36%

 

33%

 


As of March 31, 2008, long-term debt increased $12.2 million from the $139.4 million borrowed at December 31, 2007.  The increase in debt in the first quarter of 2008 to support operations is primarily due to certain seasonality within some of the segments of our business.  Overall, we generally experience lower sales in the first quarter, in comparison to the rest of the year, primarily due to reduced business activity for many customers following the year-end holiday season.  


As of March 31, 2008, we had $12.5 million of commercial paper outstanding under an existing unrated commercial paper placement agreement with a bank.  This agreement requires unused credit availability under our $125 million unsecured revolving-credit agreement that expires July 27, 2011, equal to the amount of outstanding commercial paper.  At March 31, 2008, under the $125 million facility that expires July 27, 2011, we have the ability and the intent to refinance on a long-term basis the amount of outstanding commercial paper.  As a result, we have classified the amount as long-term on our Condensed Consolidated Balance Sheet.


On March 31, 2008, we had approximately $77.8 million available borrowing capacity under a bank facility that expires on July 27, 2011.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, fund dividend payments to shareholders, and continue to repurchase shares of Wausau Paper common stock.


At December 31, 2007, there were approximately 0.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  In February 2008, our Board of Directors authorized the repurchase of an additional 2.5 million shares of Wausau Paper common stock.  Under these authorizations, we have repurchased 553,000 shares during the three months ended March 31, 2008, at a total cost of approximately $4.5 million.  At March 31, 2008, there are approximately 2.5 million shares available for repurchase.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We intend to continue to repurchase shares at a similar pace to repurchases in recent years.


Dividends


On December 19, 2007, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2008, to shareholders of record on February 1, 2008.  On April 17, 2008, the Board of Director’s declared a cash dividend in the amount of $0.085 per share.  The dividend is payable on May 15, 2008, to shareholders of record on May 1, 2008.




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This excerpt taken from the WPP 10-Q filed Nov 9, 2007.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Nine Months Ended September 30,

(all dollar amounts in thousands)

2007

2006

   

Cash provided by operating activities

$ 32,146

 

$ 17,080

 

Capital expenditures

19,196

 

17,387

 


Cash provided by operating activities was $32.1 million and $17.1 million for the nine months ended September 30, 2007 and 2006, respectively.  Inventory decreased approximately $11 million during the first nine months of 2007, compared to inventory builds of approximately $13 million during the first nine months of 2006.  Cash provided by operating activities was also impacted by an increase in net earnings, which was offset by increases in accounts receivable and other assets as well as decreases in accounts payable and accrued and other liabilities during the first nine months of 2007 compared to the same period in 2006.  On a combined basis, these items resulted in a reduction of cash provided by operating activities of approximately $3 million during the first three quarters of 2007 compared to the first three quarters of 2006.  In addition, cash paid for income taxes increased from $5 million during the first nine months of 2006 to $11 million during the same period in 2007.  


We have established an average internal rate of return target of 17% on all capital projects approved in 2007.  Capital spending for the first nine months of 2007 was $19.2 million compared to $17.4 million during the first nine months of 2006.  Total capital spending for the full year of 2007 is expected to be less than $30 million.


For 2007, capital expenditures for projects with total spending expected to exceed $1.0 million occurred in all three business segments.  Specialty Products spent $3.4 million on a roll wrap project, stoker boiler project, and other paper mill related equipment at the Rhinelander, Wisconsin facility.  Printing & Writing spent $0.9 million on a sheeter line project at a converting facility and $1.1 million on a color system project at the Brainerd, Minnesota, facility.  Towel & Tissue spent $2.6 million on various converting projects at the Harrodsburg, Kentucky, facility.  


The balance of spending for the first nine months of 2007 was related to projects that individually are expected to cost less than $1.0 million.  These expenditures included approximately $8.0 million for essential non- or low-return projects, and approximately $3.2 million on projects expected to provide a return in excess of our targeted internal rate of return.


During 2005, we announced our intent to sell, over the next three to four years, approximately 42,000 acres of timberlands, generating expected after-tax earnings of $29 million.  Since introducing the timberland sales program, we have sold approximately 18,600 acres and have realized after-tax earnings of approximately $16.2 million.  During the third quarter of 2007, we sold approximately 1,600 acres of timberlands, resulting in an after-tax gain of $1.8 million, compared to sales of approximately 5,800 acres of timberlands, resulting in an after-tax gain of $4.1 million, during the third quarter of 2006.  For the first nine months of 2007, we have sold



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approximately 3,500 acres of timberlands, resulting in an after-tax gain of $4.0 million, compared to sales of approximately 7,000 acres of timberlands, resulting in an after-tax gain of $5.9 million, during the first nine months of 2006.  We expect our timberland sales program to continue on a pace that will allow for completion of our sales program over the next three years.  We do not plan to consummate additional timberland sales programs in the future.  Gains on sales of timberlands are included in cost of sales in the Condensed Consolidated Statements of Operations.  For additional information on timberland sales gains, please refer to “Note 8 – Property, Plant, and Equipment” in the Notes to Condensed Consolidated Financial Statements.  


Debt and Equity

 

September 30,

December 31,

(all dollar amounts in thousands)

2007

2006

   

Short-term debt

$        190

 

$        184

 

Long-term debt

151,081

 

160,287

 

Total debt

151,271

 

160,471

 

Stockholders’ equity

289,691

 

274,074

 

Total capitalization

440,962

 

434,545

 

Long-term debt/capitalization ratio

34%

 

37%

 


As of September 30, 2007, long-term debt decreased $9.2 million as compared to the $160.3 million borrowed at December 31, 2006.  During the third quarter of 2007, we repaid $35.0 million of the unsecured private placement notes that matured on August 31, 2007.  To fund the retirement of the notes, we borrowed $20.0 million under our $125 million unsecured revolving-credit agreement that expires July 27, 2011.  In addition, we had net borrowings of $6.5 million in commercial paper under an existing unrated commercial paper placement agreement with a bank.  This agreement requires unused credit availability under our $125 million unsecured revolving-credit agreement equal to the amount of outstanding commercial paper.  


At September 30, 2007, $20.0 million was outstanding under our $125 million unsecured revolving-credit facility and $6.5 million was outstanding under an existing unrated commercial paper placement agreement.  Under the unsecured revolving-credit facility, we have the ability and the intent to refinance on a long-term basis the amount of outstanding commercial paper at September 30, 2007.  As a result, we have classified the amounts as long-term on our Condensed Consolidated Balance Sheets.

 

On September 30, 2007, we had approximately $78.8 million available borrowing capacity under the unsecured revolving-credit facility that expires on July 27, 2011.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, fund dividend payments to shareholders, and continue to repurchase shares of Wausau Paper common stock.


On October 19, 2007, the minimum net worth covenants under the $125 million unsecured revolving-credit facility and the $138.5 million note purchase agreement were amended.  For additional information on the amendment, please refer to “Note 15 – Subsequent Events” in the Notes to Condensed Consolidated Financial Statements.




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During 2005, we reactivated our common stock buy-back program.  At December 31, 2006, there were approximately 1.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  Under this authorization, we have repurchased 442,100 shares during the nine months ended September 30, 2007, at a total cost of approximately $5.2 million, with 314,100 shares at a cost of approximately $3.5 million repurchased during the third quarter of 2007.  At September 30, 2007, there are approximately 1.1 million shares available for repurchase.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We intend to continue repurchasing shares at a similar pace to repurchases in recent years.


Dividends


On December 18, 2006, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2007, to shareholders of record on February 1, 2007.  On April 19, 2007, the Board of Directors declared a quarterly cash dividend in the amount of $0.085 per common share.  The dividend was paid on May 15, 2007, to shareholders of record on May 1, 2007.  On June 22, 2007, the Board of Directors declared a quarterly cash dividend in the amount of $0.085 per common share.  The dividend was paid on August 15, 2007, to shareholders of record on August 1, 2007.  At a meeting held on October 19, 2007, the Board of Directors declared a quarterly cash dividend of $0.085 per common share which is payable on November 15, 2007, to shareholders of record on November 1, 2007.


This excerpt taken from the WPP 10-Q filed Aug 9, 2007.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures


 

Six Months Ended June 30,

(all dollar amounts in thousands)

2007

2006

   

Cash provided by operating activities

$ 12,461   

$ 5,191   

Capital expenditures

13,132   

11,779   


For the six months ended June 30, 2007, cash provided by operating activities was $12.5 million compared to cash provided by operating activities of $5.2 million for same period in 2006.  The change in the year-over-year comparisons of cash provided by operating activities was mainly related to the levels of inventory during the respective time periods and cash paid for income taxes.  For the first half of 2007, inventories decreased approximately $3 million compared to an increase in inventory of approximately $11 million during the first half of 2006.  This favorable impact on cash was reduced by an increase in cash paid for income taxes from $2 million during the first half of 2006 to $8 million during the first half of 2007.  


We have established an average internal rate of return target of 17% on all capital projects approved in 2007.  This objective was achieved on projects approved during the first six months of the year.  Capital spending for the first six months of 2007 was $13.1 million compared to $11.8 million during the first six months of 2006.  Total capital spending for the full-year of 2007 is expected to be approximately $30.0 million.


For 2007, capital expenditures for projects with total spending expected to exceed $1.0 million occurred in all three business segments.  Specialty Products spent $2.2 million on a roll wrap project, stoker boiler project, and other paper mill related equipment at the Rhinelander, Wisconsin facility.  Printing & Writing spent $0.8 million on a sheeter line project at a converting facility and $0.9 million on a color system project at the Brainerd, Minnesota, facility.  Towel & Tissue spent $2.2 million on various converting projects at the Harrodsburg, Kentucky, facility.


The balance of the spending for the first six months of 2007 was related to projects that individually are expected to cost less that $1.0 million.  These expenditures included approximately $4.9 million for essential non-or low-return projects, and approximately $2.1 million on projects expected to provide a return in excess of our targeted internal rate of return.


During 2005, we announced our intent to sell approximately 42,000 acres of timberlands, generating expected after-tax earnings of $29 million.  Since introducing the timberland sales program, we have sold approximately 17,000 acres and have realized after-tax earnings of approximately $14.4 million.  During the second quarter of 2007, we sold approximately 1,400 acres of timberlands, resulting in an after-tax gain of $1.8 million, compared to sales of approximately 500 acres of timberlands, resulting in an after-tax gain of $0.8 million, during the same period of 2006.  Year-to-date, we have sold approximately 1,900 acres of timberlands, resulting in an after-tax gain of $2.2 million, compared to sales of approximately 1,200 acres of



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timberlands, resulting in an after-tax gain of $1.8 million, during the first six months of 2006.  Gains on sales of timberlands are recorded as a reduction to costs of sales in the Condensed Consolidated Statements of Operations.  We expect our timberland sales program to continue at a pace that will allow us to complete our sales program over the next three years.  We do not plan to consummate additional timberland sales programs in the future.


Debt and Equity


(all dollar amounts in thousands)

June 30,

December 31,

 

2007

2006

   

Short-term debt

$       171

 

$       184

 

Long-term debt

159,823

 

160,287

 

Total debt

159,994

 

160,471

 

Stockholders’ equity

286,305

 

274,074

 

Total capitalization

446,299

 

434,545

 

Long-term debt/capitalization ratio

36%

 

37%

 


As of June 30, 2007, there was no significant change in total debt as compared to December 31, 2006.  


At June 30, 2007, under the $125 million facility that expires on July 27, 2011, we have the ability and the intent to refinance on a long-term basis the $35 million of unsecured private placement notes maturing on August 31, 2007.  As a result, we have classified the amounts as long-term on our Condensed Consolidated Balance Sheets.  


Before consideration of the $35 million of unsecured private placement notes we intend to refinance on a long-term basis, on June 30, 2007, we had approximately $105.3 million available borrowing capacity under a bank facility that expires on July 27, 2011 .  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, fund dividend payments to shareholders, and continue to repurchase shares of Wausau Paper common stock.


During 2005, we reactivated our common stock buy-back program.  At December 31, 2006, there were approximately 1.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  Under this authorization, we have repurchased 128,000 shares during the second quarter and first half of 2007 at a total cost of approximately $1.7 million.  At June 30, 2007, there are approximately 1.4 million shares available for repurchase.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We intend to continue repurchasing shares at a similar pace to repurchases in recent quarters.




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Dividends


On December 18, 2006, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2007, to shareholders of record on February 1, 2007.  On April 19, 2007, the Board of Director’s declared a cash dividend in the amount of $0.085 per share.  The dividend was paid on May 15, 2007, to shareholders of record on May 1, 2007.  At a meeting held on June 22, 2007, the Board of Directors declared a quarterly cash dividend of $0.085 per common share which is payable on August 15, 2007, to shareholders of record on August 1, 2007.


This excerpt taken from the WPP 10-Q filed May 10, 2007.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Three Months Ended

 

March 31,

(all dollar amounts in thousands)

2007

2006

   

Cash used in operating activities

$ 6,355

$ 10,409

Capital expenditures

   5,986

     4,912


For the three months ended March 31, 2007, cash used in operating activities was $6.4 million compared to cash used in operating activities of $10.4 million for same period in 2006.  In the first quarter of 2007, receivables and inventories increased a combined $14.5 million while accounts payable and other liabilities decreased $2.6 million.  For the three months ended March 31, 2006, receivables and inventories increased a combined $13.7 million.  In addition, accounts payable and other liabilities decreased more than $5.4 million.  Both the first quarter of 2007 and 2006 reflect seasonal builds in receivables and inventories.

 

We have established an average internal rate of return target of 17% on all capital projects approved in 2007.  This objective was achieved on projects approved during the first three months of the year. Capital spending for the first three months of 2007 was $6.0 million compared to $4.9 million during the first three months of 2006.  Total capital spending for the full-year of 2007 is expected to be approximately $35.0 million.


For 2007, capital expenditures for projects with total spending expected to exceed $1.0 million occurred in all three business segments.  Specialty Products spent $0.9 million on a roll wrap project, stoker boiler project, and other paper mill related equipment at the Rhinelander, Wisconsin, facility.  Printing & Writing spent $0.5 million on a sheeter line project at a converting facility and $0.2 million on a color system project at the Brainerd, Minnesota, facility.  



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Towel & Tissue spent $0.4 million on various converting projects at the Harrodsburg, Kentucky, facility.


The balance of spending for the first three months of 2007 was related to projects that individually are expected to cost less than $1.0 million.  These expenditures included approximately $0.7 million for essential non-or low-return projects, and approximately $3.3 million on projects expected to provide a return in excess of our targeted internal rate of return.


During 2005, we announced our intent to sell, over the subsequent three to four years, approximately 42,000 acres of timberlands, at values expected to result in an after-tax gain of $29 million.  Since introducing the timberland sales program, we have sold approximately 15,600 acres and have realized after-tax earnings of approximately $12.6 million.  During the first quarter of 2007, we sold approximately 500 acres of timberlands, resulting in an after-tax gain of $0.4 million, compared to sales of approximately 700 acres of timberlands, resulting in an after-tax gain of $1.0 million, during the first quarter of 2006.  We expect our timberland sales program to continue at a pace that will allow us to complete our sales program within the next two to three years.


Debt and Equity

 

March 31,

December 31,

(all dollar amounts in thousands)

2007

2006

     

Short-term debt

$         170

 

$         184

 

Long-term debt

166,555

 

160,287

 

Total debt

166,725

 

160,471

 

Stockholders’ equity

291,085

 

274,074

 

Total capitalization

457,810

 

434,545

 

Long-term debt/capitalization ratio

36%

 

37%

 


As of March 31, 2007, long-term debt increased $6.3 million as compared to the $160.3 million borrowed at December 31, 2006.  The increase in debt is due primarily to seasonal builds in inventory and receivables.


As of March 31, 2007, we had $6.5 million of commercial paper outstanding under an existing unrated commercial paper placement agreement with a bank.  This agreement requires unused credit availability under our $125 million unsecured revolving-credit agreement that expires July 27, 2011, equal to the amount of outstanding commercial paper.  


At March 31, 2007, under the $125 million facility that expires July 27, 2011, we have the ability and the intent to refinance on a long-term basis the amount of outstanding commercial paper and the $35 million of unsecured private placement notes maturing on August 31, 2007.  As a result, we have classified the amounts as long-term on our Condensed Consolidated Balance Sheets.


On March 31, 2007, we had approximately $98.8 million available borrowing capacity under a bank facility that expires on July 27, 2011.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, satisfy current maturities of debt obligations, fund dividend payments to shareholders, and pursue a plan to repurchase shares of Wausau Paper common stock.



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During 2005, we reactivated our common stock buy-back program.  At December 31, 2006, there were approximately 1.5 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  We did not repurchase any shares during the first quarter of 2007.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We anticipate that we will repurchase shares at the modest pace employed in 2006.


Dividends


On December 18, 2006, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2007, to shareholders of record on February 1, 2007.  On April 19, 2007, the Board of Director’s declared a cash dividend in the amount of $0.085 per share.  The dividend is payable on May 15, 2007, to shareholders of record on May 1, 2007.


This excerpt taken from the WPP 10-Q filed Nov 9, 2006.

Liquidity and Capital Resources


Cash Flows and Capital Expenditures

 

Nine Months Ended September 30,

(all dollar amounts in thousands)

2006

2005

   

Cash provided by operating activities

$ 17,080

$  3,708

Capital expenditures

17,387

26,606


Cash provided by operating activities was $17.1 million and $3.7 million for the nine months ended September 30, 2006 and 2005, respectively.  Inventory increased approximately $13 million during the first nine months of 2006 compared to inventory builds of approximately $15 million during the first nine months of 2005.  The increase in inventory levels is attributable to seasonal inventory builds in all business segments.  The remaining provision of cash is mainly related to year-over year increases in the change in accounts payable and other accrued liabilities



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during the first nine months of 2006 compared to the same period in 2005, somewhat offset by increases in accounts receivable from the December 31 of each year to September 30.  On a combined basis, these items resulted in a provision of cash of approximately $11 million during the first three quarters of 2006 compared to the first three quarters of 2005.


Wausau Paper has established an average internal rate of return target of 17% on all capital projects approved in 2006.  This objective was achieved on projects approved during the first nine months of the year.  Capital spending for the first nine months of 2006 was $17.4 million compared to $26.6 million during the first nine months of 2005.  Total capital spending for the full year of 2006 is expected to be approximately $25 million.


For 2006, capital expenditures for projects with total spending expected to exceed $1.0 million occurred in all three business segments.  Specialty Products spent $3.8 million on a stock prep consolidation project and $0.6 million on paper mill related equipment at the Rhinelander, Wisconsin facility and $1.6 million on paper mill related equipment at the Mosinee, Wisconsin paper mill.  Printing & Writing spent $0.2 million on a palletizer project at the Groveton, New Hampshire paper mill and Towel & Tissue spent $0.6 million on various converting lines.  


The balance of spending for the first nine months of 2006 was related to projects that individually are expected to cost less than $1.0 million.  These expenditures included approximately $6.6 million for essential non- or low-return projects, and approximately $4.0 million on projects expected to provide a return in excess of our targeted internal rate of return.


During 2005, we announced our intent to sell, over the next three to four years, approximately 42,000 acres of timberlands, generating expected after-tax earnings of $29 million.  Since introducing the timberland sales program, we have sold approximately 8,200 acres and have realized after-tax earnings of approximately $7.2 million.  During the third quarter of 2006, we sold approximately 5,800 acres of timberlands, resulting in an after-tax gain of $4.1 million, compared to sales of approximately 670 acres of timberlands, resulting in an after-tax gain of $0.7 million, during the third quarter of 2005.  For the first nine months of 2006, we have sold approximately 7,000 acres of timberlands, resulting in an after-tax gain of $5.9 million, compared to sales of approximately 750 acres of timberlands, resulting in an after-tax gain of $0.9 million, during the first nine months of 2005.  We expect our timberland sales program to continue on a pace that will allow for completion of our sales program within the time period specified.


Debt and Equity

 

September 30,

December 31,

(all dollar amounts in thousands)

2006

2005

   

Short-term debt

$        267

$         86

Long-term debt

160,517

161,011

Total debt

160,784

161,097

Stockholders’ equity

307,959

310,219

Total capitalization

468,743

471,316

Long-term debt/capitalization ratio

34%

34%



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As of September 30, 2006, there was no significant change in total debt as compared to December 31, 2005.


On July 27, 2006, we amended and restated our existing $100 million revolving-credit facility to provide an unsecured $125 million facility with five financial institutions that will expire on July 27, 2011.  Under the new credit agreement, we will pay an annual facility fee (initially .175%).  In addition to representations and warranties, covenants, and provisions for default customary for facilities of this nature for customers of the banks having similar creditworthiness, we are required to maintain a consolidated leverage ratio of not more than 55%, a consolidated interest coverage ratio of not less than 3.0 to 1, and a consolidated net worth of $285.4 million (increased by 25% of net quarterly income and proceeds from equity sales).  At September 30, 2006, we were in compliance with covenants related to the $125 million revolving-credit facility.  On September 30, 2006, we had $106 million available borrowing capacity under this revolving-credit facility.  Our cash position and borrowing capacity is expected to provide sufficient liquidity to support operations, meet capital spending requirements, fund dividend payments to shareholders, and continue to repurchase shares of Wausau Paper common stock.


At September 30, 2006, under the $125 million facility entered into on July 27, 2006, Wausau Paper has the ability and the intent to refinance on a long-term basis the $35 million of unsecured private placement notes maturing on August 31, 2007.  As a result, we have classified the amount as long-term on our balance sheet.


During 2005, we reactivated our common stock buy-back program.  At December 31, 2005, there were approximately 2.0 million shares available for repurchase through an authorization approved by our Board of Directors in 2000.  Under this authorization, we have repurchased 394,400 shares for the year-to-date period ended September 30, 2006 at a total cost of approximately $5.3 million, with 160,000 shares at a cost of approximately $2.0 million repurchased during the third quarter of 2006.  At September 30, 2006, there are approximately 1.6 million shares available for repurchase.  Repurchases may be made from time to time in the open market or through privately negotiated transactions.  We intend to continue repurchasing shares at a similar pace to repurchases in recent quarters.


Dividends


On December 16, 2005, the Board of Directors declared a quarterly cash dividend of $0.085 per common share.  The dividend was paid on February 15, 2006, to shareholders of record on February 1, 2006.  On April 20, 2006, the Board of Directors declared a quarterly cash dividend in the amount of $0.085 per common share.  The dividend was paid on May 15, 2006, to shareholders of record on May 1, 2006.  On June 16, 2006, the Board of Directors declared a quarterly cash dividend in the amount of $0.085 per common share.  The dividend was paid on August 15, 2006, to shareholders of record on August 1, 2006.  At a meeting held on October 20, 2006, the Board of Directors declared a quarterly cash dividend of $0.085 per common share which is payable on November 15, 2006, to shareholders of record on November 1, 2006.




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