Cellu Tissue Holdings, Inc. Announces First Quarter Fiscal 2011 Results


    



    
</pre>
<p>ALPHARETTA, Ga., <span class="xn-chron">July 7</span> /CNW/ -- Cellu Tissue Holdings, Inc. (NYSE:   CLU), a North American producer of tissue products, today reported net sales of <span class="xn-money">$132.1 million</span> and a net loss of <span class="xn-money">$1.3 million</span>, or a loss of <span class="xn-money">$0.07</span> per diluted share, for the fiscal 2011 first quarter ended <span class="xn-chron">May 27, 2010</span>.</p>
<p/>
<p>Summarized consolidated fiscal 2011 first quarter results compared to fiscal 2010 first quarter results are as follows:</p>
<pre>
    

    --  Net sales for the fiscal 2011 first quarter were $132.1 million, up
        11.1% compared to $118.9 million in the fiscal 2010 first quarter.
    --  Income from operations for the fiscal 2011 first quarter was $5.7
        million compared to $13.3 million in the fiscal 2010 first quarter.
    --  Adjusted EBITDA was $12.9 million in the fiscal 2011 first quarter
        compared to $20.5 million in the fiscal 2010 first quarter.
    --  Interest expense for the fiscal 2011 first quarter was $7.5 million
        compared to $6.5 million in the first quarter of fiscal 2010, due to
        higher interest rates.
    --  Net loss for the fiscal 2011 first quarter was $1.3 million, or a loss
        of $0.07 per diluted share, compared to net income of $2.3 million, or
        earnings of $0.13 per diluted share for the fiscal 2010 first quarter.

    
</pre>
<p>"Our fiscal 2011 first quarter results reflect strong and improving fundamentals within our business offset by the continued impact of record high pulp prices and no retail market price increase in converted tissue products," said Russell C. Taylor, President and Chief Executive Officer of Cellu Tissue Holdings. "Our sales volumes and operating cost structure were in-line with our internal expectations.  We have also taken the appropriate steps to combat continued high pulp costs by executing price increases in tissue hardrolls, machine-glazed products, and the away-from-home converted market as planned, and we will see these benefits beginning in the fiscal second quarter.</p>
<p/>
<p>"We are maintaining our fiscal 2011 EBITDA guidance range of <span class="xn-money">$77 million to $85 million</span>.  This guidance assumes that we continue to execute our strategy to grow converted tissue products and that pulp prices will begin trending down during the second half of our fiscal year, returning to historical levels by our fiscal year-end."</p>
<pre>
    

    Fiscal 2011 First Quarter Financial and Operating Results

    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                        Three months ended
                        ------------------
                May 27, 2010       May 28, 2009      Increase (Decrease)
                ------------       ------------      -------------------
    Net sales   $132.1 million     $118.9 million  $13.2 million        11.1%
    Gross
     Profit      $12.2 million      $19.8 million $(7.6) million      (38.7)%
    Income
     from
     operations   $5.7 million      $13.3 million $(7.6) million      (56.9)%
    Tons sold           82,494             78,009          4,485         5.7%
    Net
     selling
     price per
     ton                $1,580             $1,501            $79         5.3%


    
</pre>
<p>Net sales for the quarter increased <span class="xn-money">$13.2 million</span>, or 11.1% quarter-over-quarter, primarily as a result of a 5.7% increase in tons sold, the continued mix shift to converted tissue products and the previously mentioned hardroll price increases.  The increase in total tons sold reflects growth in converted tons sold, partially offset by in-sourcing an additional 3,400 tons of hardrolls for the Company's converting operations, which were purchased on the external hardroll market in the prior year period.  As a result, Cellu Tissue reduced external hardroll shipments by a similar amount and improved the overall sales mix due to higher selling prices for converted tissue products, consistent with the Company's strategy to increase the vertical integration of its acquired operations and to improve quality control and profitability.</p>
<p/>
<p>Net selling price per ton increased 5.3% primarily due to hardroll price increases completed in the first quarter of fiscal 2011 and by the favorable impact of increasing the mix of converted tissue products relative to hardrolls. Prices in the hardroll market increased in the first quarter of fiscal 2011 but lagged price increases in the pulp market.</p>
<p/>
<p>Gross profit as a percentage of net sales decreased to 9.2% in the fiscal 2011 first quarter from 16.7% in the fiscal 2010 first quarter.  The decline was primarily driven by higher pulp costs, partially offset by improved sales mix and increases in hardroll prices.</p>
<p/>
<p>Income from operations for the fiscal 2011 first quarter was <span class="xn-money">$5.7 million</span> compared with <span class="xn-money">$13.3 million</span> in the same period of the prior fiscal year, which was primarily attributable to the decline in gross profit.</p>
<pre>
    

    Income Tax Benefit

    
</pre>
<p>Income tax benefit for the fiscal 2011 first quarter was <span class="xn-money">$0.6 million</span> compared to income tax expense of <span class="xn-money">$4.1 million</span> for the fiscal 2010 first quarter.  The Company's effective tax rate for the first quarter of fiscal 2011 was 31.9%, which includes the beneficial impacts of reductions in applicable foreign tax rates as well as the full phase-in of the tax benefits from the domestic production activities deduction.  Management estimates the overall tax rate for fiscal 2011 will be approximately 34%.</p>
<pre>
    

    Segment Operating Results

    Tissue

    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                Quarter ended
                                -------------
                       May 27, 2010       May 28, 2009     Increase (Decrease)
                       ------------       ------------     -------------------
    
</pre>
<p> </p>
<pre>
    
    Net sales           $103.0 million $93.5 million   $9.5 million    10.2%
    Income from
     operations           $6.5 million $12.4 million $(5.9) million  (47.7)%
    Tons sold:
       Converted tissue
        products                28,074        24,360          3,714    15.2%
       Hardrolls                33,648        34,296           (648)  (1.9)%
                                ------        ------           ----
          Total                 61,722        58,656          3,066     5.2%
    Overall net
     selling price
     per ton                    $1,668        $1,593            $75     4.7%


    
</pre>
<p>Net sales for Tissue during the quarter increased to <span class="xn-money">$103.0 million</span>, or 10.2% quarter-over-quarter, primarily as a result a 5.2% increase in tons sold, the continued mix shift to converted tissue products and the hardroll price increases.  The increase in total tons sold reflects growth in converted tons sold, which was partially offset by in-sourcing an additional 3,400 tons of hardrolls for the Company's converting operations, which were purchased on the external hardroll market in the prior year period. The 4.7% increase in net selling price per ton primarily reflects the continued mix shift to converted tissue products from tissue hardrolls. Income from operations was <span class="xn-money">$6.5 million</span> in the fiscal 2011 first quarter compared to <span class="xn-money">$12.4 million</span> in the fiscal 2010 first quarter.  Income from operations in the fiscal 2011 first quarter reflects rising pulp prices that were partially offset by mix improvements and hardroll price increases.</p>
<pre>
    

    Machine-Glazed Tissue

    
</pre>
<p> </p>
<pre>
    
                         Quarter ended
                         -------------
                        May 27, 2010 May 28, 2009 Increase (Decrease)
                        ------------ ------------ -------------------
    Net sales           $27.3 million $23.6 million   $3.7 million   15.8%
    Income from
     operations          $0.3 million  $1.3 million $(1.0) million (74.7)%
    Tons sold:
       Hardrolls               18,302        17,332            970    5.6%
       Converted tissue
        products                2,470         2,021            449   22.2%
                                -----         -----            ---
          Total                20,772        19,353          1,419    7.3%
    Overall net selling
     price per ton             $1,316        $1,219            $97    8.0%


    
</pre>
<p>Net sales in Machine-Glazed Tissue increased to <span class="xn-money">$27.3 million</span> from <span class="xn-money">$23.6 million</span> in the fiscal 2010 first quarter as a result of increased sales volumes and higher net selling prices. Operating income in Machine-Glazed Tissue was <span class="xn-money">$0.3 million</span> in the fiscal 2011 fourth quarter, down compared to <span class="xn-money">$1.3 million</span> in the fiscal 2010 first quarter due to significantly higher pulp prices, partially offset by higher net selling prices.</p>
<pre>
    


    Foam

    
</pre>
<p> </p>
<pre>
    
                   Quarter ended February 28,
                   --------------------------
                        2010              2009     Increase (Decrease)
                        ----              ----     -------------------
    Net sales   $1.8 million      $1.9 million $(0.1) million         (3.8)%
    Income from
     operations $0.0 million      $0.6 million $(0.6) million       (106.0)%


    
</pre>
<p>Net sales in Foam were <span class="xn-money">$1.8 million</span> compared to <span class="xn-money">$1.9 million</span> in the prior fiscal year period.  Income from operations decreased by <span class="xn-money">$0.6 million</span> in the current fiscal year period due to lower selling prices and higher resin costs, which is the primary raw material used to manufacture the Company's foam products.</p>
<pre>
    

    Adjusted EBITDA

    
</pre>
<p>Earnings before interest, taxes, depreciation, amortization and special items (Adjusted EBITDA) for the first quarter ended <span class="xn-chron">May 27, 2010</span> totaled <span class="xn-money">$12.9 million</span>, compared to <span class="xn-money">$20.5 million</span> for the comparable period in the prior fiscal year.</p>
<pre>
    

    Notice Relating to the Use of Non-GAAP Measures
    
</pre>
<p>Attached to this press release are tables setting forth the Company's first quarter consolidated statements of operations, financial position and selected consolidated financial data, including information concerning the Company's cash flow position, selected consolidated segment data, reconciliations of consolidated net income to consolidated EBITDA and reconciliations of consolidated EBITDA to consolidated Adjusted EBITDA.</p>
<pre>
    


    
</pre>
<p>EBITDA represents earnings before interest expense, income taxes and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted to reflect the additions and eliminations described in the table below. EBITDA and Adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under U.S. GAAP. Some of the limitations are:</p>
<pre>
    

    --  EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or
        future requirements for capital expenditures or contractual
        commitments;
    --  EBITDA and Adjusted EBITDA do not reflect changes in, or cash
        requirements for, our working capital needs;
    --  EBITDA and Adjusted EBITDA do not reflect the significant interest
        expense, or the cash requirements necessary to service interest or
        principal payments, on our debt;
    --  although depreciation and amortization are non-cash charges, the
assets
        being depreciated and amortized will often have to be replaced in the
        future, and EBITDA and Adjusted EBITDA do not reflect any cash
        requirements for such replacements; and
    --  other companies in our industry may calculate EBITDA and Adjusted
        EBITDA differently than we do, limiting their usefulness as
comparative
        measures.

    
</pre>
<p>Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only supplementally. We further believe that our presentation of these U.S. GAAP and non-GAAP financial measurements provide information that is useful to analysts and investors because they are important indicators of the strength of our operations and the performance of our core business.</p>
<pre>
    

    Management uses EBITDA and Adjusted EBITDA:

    --  as measurements of operating performance because they assist us in
        comparing our operating performance on a consistent basis, as both
        remove the impact of items not directly resulting from our core
        operations;
    --  for planning purposes, including the preparation of our internal
annual
        operating budget;
    --  to allocate resources to enhance the financial performance of our
        business;
    --  to evaluate the performance and effectiveness of our operational
        strategies;
    --  to evaluate our capacity to fund capital expenditures and expand our
        business; and
    --  to calculate incentive compensation for our employees.

    
</pre>
<p>In addition, these measurements are used by investors as supplemental measures to evaluate the overall operating performance of companies in our industry. Management believes that investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations from one period to the next and would ordinarily add back events that are not part of normal day-to-day operations of our business. By providing these non-GAAP financial measures, together with reconciliations, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives.</p>
<p/>
<p>Cellu Tissue's management invites you to listen to its conference call on <span class="xn-chron">July 8, 2010</span> at <span class="xn-chron">9:00 a.m. ET</span> regarding fiscal 2011 first quarter consolidated financial results.  To participate in the conference call, you may either dial (800) 230-1951 or International (612) 332-0636, or join in listen-only mode to an audio webcast, accessible through the Investor Relations section at <a href="http://www.cellutissue.com">www.cellutissue.com</a>.  A taped replay of the conference call will be available after <span class="xn-chron">1:00 p.m.</span> on <span class="xn-chron">July 8, 2010</span> until <span class="xn-chron">July 22, 2010</span>.  The number to all for the taped replay is (800) 475-6701 or International (320) 365-3844, access code 163364. The taped replay information to access the call will also be available in the Investor Relations section of the Company's website at <a href="http://www.cellutissue.com">www.cellutissue.com</a>.</p>
<pre>
    

    About Cellu Tissue Holdings, Inc.
    
</pre>
<p>Cellu Tissue Holdings, Inc. is a North American producer of tissue products, with a focus on consumer-oriented private label products and a growing presence in the value retail tissue market.</p>
<p/>
<p>For more information, contact Cellu Tissue Holdings, Inc. at <a href="http://www.cellutissue.com">www.cellutissue.com</a>.</p>
<p/>
<p>The statements contained in this release that are not purely historical, including information regarding our future financial performance and future pulp pricing,  are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.  Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements included in this document are based upon information available to Cellu Tissue as of the date hereof, and Cellu Tissue assumes no obligation to update any such forward-looking statements. Such statements and any other forward-looking statements are subject to risks, assumptions and uncertainties that may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements, including risks related to energy and pulp costs, the growth of our converted tissue business changes in retail pricing levels and any other risks described in our Annual Report on Form 10-K for the fiscal year ended <span class="xn-chron">February 28, 2010</span> and subsequent filings with the SEC.</p>
<pre>
    



    
</pre>
<p> </p>
<pre>
    
              CELLU TISSUE HOLDINGS, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
    
</pre>
<p> </p>
<pre>
    
                                                  For the three months ended
                                                  --------------------------
                                           May 27, 2010      May 28, 2009
                                           ------------      ------------
    Net sales                               $132,104,145      $118,928,222
    Cost of goods sold                       119,953,232        99,114,910
                                             -----------        ----------
    Gross profit                              12,150,913        19,813,312
    
</pre>
<p> </p>
<pre>
    
    Selling, general and
     administrative expenses                   5,392,353         5,501,154
    Amortization expense                       1,044,554         1,056,424
                                               ---------         ---------
    Income from operations                     5,714,006        13,255,734
    
</pre>
<p> </p>
<pre>
    
    Interest expense, net                      7,480,694         6,506,553
    Foreign currency loss                        215,497           356,941
    Other income                                  (3,019)          (16,578)
                                                  ------           -------
    Income (loss) before income tax
     expense                                  (1,979,166)        6,408,818
    
</pre>
<p> </p>
<pre>
    
    Income tax (benefit) expense                (631,807)        4,097,953
    Net (loss) income                        $(1,347,359)       $2,310,865
                                             ===========        ==========
    
</pre>
<p> </p>
<pre>
    
    Basic and diluted (loss)
     earnings per share                           $(0.07)            $0.13
    Basic shares outstanding                  20,149,300        17,477,971
    Diluted shares outstanding                20,149,300        17,477,971



    
</pre>
<p> </p>
<pre>
    
                CELLU TISSUE HOLDINGS, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                                   February
                                                     May 27,          28,
                                                           2010          2010
                                                           ----          ----
    
</pre>
<p> </p>
<pre>
    
    ASSETS
    Current Assets:
      Cash and cash equivalents                      $3,234,310    $3,299,033
      Receivables, net                               51,176,000    49,659,464
      Inventories                                    58,702,210    56,586,982
      Prepaid expenses and other current assets       3,374,041     3,810,934
      Income tax receivable                           2,351,846     2,788,118
      Deferred income taxes                           1,280,329     1,180,866
                                                      ---------     ---------
        Total Current Assets                        120,118,736   117,325,397
    
</pre>
<p> </p>
<pre>
    
    Property, plant and equipment, net              311,288,628   307,635,021
    Goodwill                                         41,020,138    41,020,138
    Other intangibles                                26,295,399    27,339,953
    Other assets                                      9,010,558     9,385,877
                                                      ---------     ---------
        Total Assets                               $507,733,459  $502,706,386
                                                   ============  ============
    
</pre>
<p> </p>
<pre>
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Revolving line of credit                       $8,000,000    $1,000,750
      Accounts payable                               28,739,041    34,275,598
      Accrued expenses                               27,010,769    27,820,255
      Accrued interest                               13,239,944     6,721,143
      Other current liabilities                         978,688       623,653
      Current portion of long-term debt                 760,000       760,000
                                                        -------       -------
        Total Current Liabilities                    78,728,442    71,201,399
    
</pre>
<p> </p>
<pre>
    
    Long-term debt, less current portion            242,500,875   242,538,125
    Deferred income taxes                            76,239,682    77,178,393
    Other liabilities                                   889,443       956,444
    
</pre>
<p> </p>
<pre>
    
    Stockholders' Equity:
      Common stock, $.01 par value, 23,715,470
       shares authorized, 20,145,176 shares
       issued and outstanding as of February 28,
       2010 and common stock, $.01 par value,
       18,245,459 shares authorized, 17,447,971
       shares issued and outstanding as of
       February 28, 2009
                                                        201,671       201,452
      Capital in excess of par value                103,302,236   103,076,890
      Accumulated earnings                            6,113,333     7,460,692
      Accumulated other comprehensive income
       (loss)                                          (242,223)       92,991
                                                       --------        ------
        Total Stockholders' Equity                  109,375,017   110,832,025
                                                    -----------   -----------
        Total Liabilities and Stockholders' Equity $507,733,459  $502,706,386
                                                   ============  ============



    
</pre>
<p> </p>
<pre>
    
                  CELLU TISSUE HOLDINGS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                  Three Months Ended
                                           May 27, 2010      May 28, 2009
                                           ------------      ------------
    
</pre>
<p> </p>
<pre>
    
    Cash flows from operating
     activities
      Net (loss) income                     $(1,347,359)       $2,310,865
      Adjustments to reconcile net
       (loss) income to net cash
       provided by operating activities:
        Depreciation                          6,389,068         5,928,005
        Amortization of intangibles           1,044,554         1,056,424
        Amortization of debt issue costs        378,652           112,783
        Accretion and write-off of debt
         discount                               342,750           596,915
        Stock-based compensation                287,000           231,220
        Deferred income taxes                (1,038,174)        2,287,630
        Loss on disposal of fixed asset          60,171                 -
      Changes in operating assets and
       liabilities:
        Receivables                          (1,489,805)        5,402,133
        Inventories                          (2,136,197)         (453,669)
        Prepaid expenses, other current
         assets and income tax receivable       936,872          (641,016)
        Other assets and liabilities            (85,741)           52,314
        Accounts payable, accrued expenses
         and accrued interest                    71,120        (3,427,546)
                                                               ----------
         Total adjustments                    4,760,270        11,145,193
                                              ---------        ----------
           Net cash provided by operating
            activities                        3,412,911        13,456,058
    
</pre>
<p> </p>
<pre>
    
    Cash flows from investing
     activities
        Capital expenditures               (10,044,152)        (6,262,050)
                                            -----------        ----------
         Net cash used in investing
          activities                       (10,044,152)        (6,262,050)
    
</pre>
<p> </p>
<pre>
    
    Cash flows from financing
     activities
        Bank overdrafts                               -        (3,285,420)
        Borrowings on revolving line of
         credit,net                          13,056,893        21,714,271
        Payments on revolving line of
         credit, net                         (6,057,643)     (24,245,095)
        Payments on long-term debt             (380,000)         (380,000)
        Expenses from initial public
         offering                              (171,042)                -
        Proceeds from stock options
         exercised                              109,607                 -
                                                -------               ---
         Net cash provided by (used in)
          financing activities                6,557,815        (6,196,244)
    
</pre>
<p> </p>
<pre>
    
    Effect of foreign currency                    8,703            11,186
                                                  -----            ------
    Net (decrease) increase in cash
     and cash equivalents                       (64,723)        1,008,950
    Cash and cash equivalents at
     beginning of period                      3,299,033           361,035
                                              ---------           -------
    Cash and cash equivalents at end
     of period                               $3,234,310        $1,369,985
                                             ==========        ==========



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                   CELLU TISSUE HOLDINGS, INC.
       CONSOLIDATED BUSINESS SEGMENT INFORMATION (Unaudited)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    BUSINESS SEGMENTS
                                Three Months Ended
                                   May 27,             May 28,
                                         2010                2009
                                         ----                ----
    NET SALES:
      Tissue                     $102,976,159         $93,467,361
      Machine-Glazed Tissue        27,332,813          23,594,065
      Foam                          1,795,173           1,866,796
                                    ---------           ---------
      Consolidated               $132,104,145        $118,928,222
                                 ============        ============
    
</pre>
<p> </p>
<pre>
    
    INCOME FROM OPERATIONS:
      Tissue                       $6,455,640         $12,354,854
      Machine-Glazed Tissue           339,357           1,340,387
      Foam                            (36,437)            616,917
                                      -------             -------
      Segment income from
       operations                   6,758,560          14,312,158
      Amortization expense         (1,044,554)         (1,056,424)
                                   ----------
      Consolidated                 $5,714,006         $13,255,734
                                   ==========         ===========



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                     CELLU TISSUE HOLDINGS, INC.
      RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO EBITDA
                              (Unaudited)
    
</pre>
<p> </p>
<p>                                    Three Months Ended</p>
<p> </p>
<pre>
    
                                    May 27,           May 28,
                                         2010              2009
                                         ----              ----
    
</pre>
<p> </p>
<pre>
    
    NET INCOME (LOSS)             $(1,347,359)       $2,310,865
      Add back:
        Depreciation                6,389,068         5,928,005
        Amortization                1,044,554         1,056,424
        Interest expense,net        7,480,694         6,506,553
        Income tax benefit           (631,807)        4,097,953
                                     --------         ---------
    EBITDA                        $12,935,150       $19,899,800
                                  ===========       ===========



    
</pre>
<p> </p>
<pre>
    
                       CELLU TISSUE HOLDINGS, INC.
    RECONCILIATION OF CONSOLIDATED EBITDA  TO CONSOLIDATED ADJUSTED
                                 EBITDA
                               (Unaudited)
                                                      $in thousands
    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                Three months ended
                                             May 27,      May 28,
                                                 2010         2009
                                                 ----         ----
    EBITDA (1)                                $12,935      $19,899
    Adjustments:
      Natural Dam Fire (2)                          -          250
      APF Transition and Related Costs (3):
         Facility consolidation                     -          353
    ADJUSTED EBITDA                           $12,935      $20,502
                                              =======      =======
    
</pre>
<p> </p>
<pre>
    
    (1) EBITDA includes stock-based compensation expense related to
    equity awards of $0.3 million and $0.2 million, for the three months
    ended May 27, 2010 and May 28, 2009, respectively.
    
</pre>
<p> </p>
<pre>
    
    (2) Insurance deductible costs related to a fire at our Natural Dam
    mill at our Gouverneur, New York facility.
    
</pre>
<p> </p>
<pre>
    
    (3) In fiscal year 2009, we acquired APF, which was a significant
    acquisition because of its size and complexity of operations.  In
    connection with the APF acquisition, we determined that several
    initiatives, to be completed over a twelve-month period, would help
    achieve identified synergies.  These initiatives included
    eliminating certain overhead functions and aligning those activities
    with our existing infrastructure as well as consolidating production
    and inventory storage facilities.  Our consolidation of facilities
    included centralizing the acquired APF production facility and two
    APF inventory storage facilities located in Hauppauge, New York into
    one consolidated facility in Long Island, New York and moving
    machinery for a napkin line from our Neenah, Wisconsin location to
    the acquired APF Thomaston, Georgia facility.






    

For further information: For further information: Jeff Sprick, +1-678-631-4925 Web Site: http://www.cellutissue.com

Organization Profile

CELLU TISSUE HOLDINGS, INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890