Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,553.27 37.00 0.25%
TOPIX 1,173.74 0.37 0.03%
HANG SENG 22,760.24 64.23 0.28%

USG Corporation Reports 2013 First Quarter Results



  USG Corporation Reports 2013 First Quarter Results

First Quarter 2013 vs. First Quarter 2012

Consolidated Business Highlights

  * Sales increased 4 percent to $814 million
  * Operating profit of $49 million compared to $24 million
  * Net income of $2 million compared to net loss of $27 million

Business Unit Highlights

  * U.S. Gypsum wallboard shipments totaled 1.11 BSF vs. 1.16 BSF
  * U.S. Gypsum average wallboard price of $153.07 per thousand square feet
    vs. $130.43
  * Worldwide Ceilings operating profit increased 4 percent to $27 million
  * L&W same store net sales increased 9 percent
  * SHEETROCK^® Brand UltraLight Panels accounted for 51 percent of all USG
    wallboard shipments in the United States

Business Wire

CHICAGO -- April 24, 2013

USG Corporation (NYSE:USG), a leading building products company, today
reported first quarter 2013 net sales of $814 million, up 4 percent from first
quarter 2012 net sales of $783 million. USG’s first quarter 2013 operating
profit was $49 million compared to a $24 million operating profit in the first
quarter of 2012. First quarter 2013 net income was $2 million or $0.02 per
diluted share. This result compares to a $27 million net loss in the first
quarter of 2012 or $0.26 per diluted share.

“We are pleased to report our first quarter of net income in more than five
years,” said James S. Metcalf, Chairman, President and CEO. “All segments
showed improved results in the period, and our commitment to innovation and
lowering our break-even are evident in our results.”

The corporation’s adjusted net income was $1 million in the first quarter of
2013, which compares to an adjusted net loss of $27 million in the first
quarter of 2012. The adjusted net income for the first quarter of 2013
excludes $2 million of restructuring charges and a $3 million benefit from a
change in tax law. The adjusted net income for the first quarter of 2012
excludes $2 million of restructuring charges and $2 million of income from
discontinued operations.

“Achieving positive net income in the first quarter is an important milestone
as we emerge from the most significant downturn in our company’s history, but
there is more work to be done,” Metcalf said. “We will continue to execute Our
Plan to Win as the recovery continues in our core markets.”

A conference call is being held today at 10:00 A.M. Central Time during which
USG senior management will discuss the corporation’s operating results. The
conference call will be webcast on the USG website, www.usg.com, in the
Investor Relations section. The dial-in number for the conference call is
1-800-315-2944 (1-847-413-2929 for international callers), and the pass code
is 34513612. After the live webcast, a replay of the webcast will be available
on the USG website. In addition, a telephonic replay of the call will be
available until Friday, May 3, 2013. The replay dial-in number is
1-888-843-7419 (1-630-652-3042 for international callers), and the pass code
is 34513612.

USG Corporation is a manufacturer and distributor of high-performance building
systems through its United States Gypsum Company, USG Interiors, LLC, L&W
Supply Corporation and other subsidiaries. Headquartered in Chicago, USG’s
worldwide operations serve the residential and non-residential construction
markets, repair and remodel construction markets, and industrial processes.
USG’s wall, ceiling, flooring and roofing products provide leading-edge
building solutions for customers, while L&W Supply branch locations
efficiently stock and deliver building materials nationwide. For additional
information, visit the USG website at www.usg.com.

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 related to management’s
expectations about future conditions. Actual business, market or other
conditions may differ materially from management’s expectations and,
accordingly, may affect our sales and profitability or other results and
liquidity. Actual results may differ materially due to various other factors,
including: economic conditions, such as the levels of new home and other
construction activity, employment levels, the availability of mortgage,
construction and other financing, mortgage and other interest rates, housing
affordability and supply, the levels of foreclosures and home resales,
currency exchange rates and consumer confidence; capital markets conditions
and the availability of borrowings under our credit agreement or other
financings; competitive conditions, such as price, service and product
competition; shortages in raw materials; changes in raw material and energy
costs; volatility in the assumptions used to determine the funded status of
our pension plans; the loss of one or more major customers and our customers’
ability to meet their financial obligations to us; capacity utilization rates
for us and the industry; our ability to expand into new geographic markets and
the stability of such markets; changes in laws or regulations, including
environmental and safety regulations; the satisfactory performance of certain
business functions by third party service providers; our ability to achieve
anticipated savings from cost reduction programs; the outcome in contested
litigation matters; the effects of acts of terrorism or war upon domestic and
international economies and financial markets; and acts of God. We assume no
obligation to update any forward-looking information contained in this press
release.

 
USG CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions except per share data)
(Unaudited)
                                                      
                             Three months
                             ended March 31,
                             2013                        2012 ^(1)
                                                          
                                                          
Net sales                    $    814                    $   783
                                                          
Cost of products sold             690                        681            
                                                          
Gross profit                      124                        102
                                                          
Selling and                       73                         76
administrative expenses
                                                          
Restructuring charges             2                          2              
                                                          
Operating profit                  49                         24
                                                          
Interest expense                  50                         52
Interest income                   (1             )           (1            )
Other expense, net                1                          1              
                                                          
Loss from continuing
operations before                 (1             )           (28           )
income taxes
                                                          
Income tax (benefit)              (3             )           1              
expense
                                                          
Income (loss) from                2                          (29           )
continuing operations
                                                          
Income from
discontinued                      -                          2              
operations, net of tax
                                                          
Net income (loss)            $    2                      $   (27           )
                                                          
                                                          
Earnings per common
share - basic:
Income (loss) from           $    0.02                   $   (0.28         )
continuing operations
Income from                       -                          0.02           
discontinued operations
Net income (loss)            $    0.02                   $   (0.26         )
                                                          
Earnings per common
share - diluted:
Income (loss) from           $    0.02                   $   (0.28         )
continuing operations
Income from                       -                          0.02           
discontinued operations
Net income (loss)            $    0.02                   $   (0.26         )
                                                          
Average common shares             108,390,706                105,718,156
Average diluted common            111,332,621                105,718,156
shares
                                                          
(1) Prior-period amounts have been adjusted to reflect our European businesses
as discontinued operations. These businesses were sold on December 27, 2012.
 

                                                    
USG CORPORATION
CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(Unaudited)
                                                                 
                                                     As of        As of
                                                     March 31,    December 31,
                                                     2013         2012
Assets
Current Assets:
Cash and cash equivalents                            $ 395        $  546
Short-term marketable securities                       99            106
Restricted cash                                        1             1
Receivables (net of reserves - $16 and $16)            397           326
Inventories                                            315           304
Income taxes receivable                                3             2
Deferred income taxes                                  2             2
Other current assets                                   45            40       
Total current assets                                   1,257         1,327
                                                                   
Long-term marketable securities                        32            25
Property, plant and equipment (net of accumulated
depreciation and depletion - $1,769 and $1,738)        2,115         2,100
Deferred income taxes                                  41            38
Other assets                                           226           233      
                                                                   
Total Assets                                         $ 3,671      $  3,723    
                                                                   
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                                     $ 246        $  286
Accrued expenses                                       206           237
Current portion of long-term debt                      4             4
Deferred income taxes                                  22            22
Income taxes payable                                   2             2        
Total current liabilities                              480           551
                                                                   
Long-term debt                                         2,015         2,016
Long-term debt - related party                         290           289
Deferred income taxes                                  6             5
Pension and other postretirement benefits              573           573
Other liabilities                                      267           270      
Total liabilities                                      3,631         3,704    
                                                                   
Stockholders' Equity:
Preferred stock                                        -             -
Common stock                                           11            11
Treasury stock                                         (3     )      -
Additional paid-in capital                             2,595         2,595
Accumulated other comprehensive loss                   (224   )      (233    )
Retained earnings (accumulated deficit)                (2,365 )      (2,367  )
Stockholders' equity of parent                         14            6
Noncontrolling interest                                26            13       
Total stockholders' equity including                   40            19       
noncontrolling interest
                                                                   
Total Liabilities and Stockholders' Equity           $ 3,671      $  3,723    
                                                                   
Other Information:
Total cash and cash equivalents and marketable       $ 526        $  677
securities
Borrowing availability from lines of credit            241           197      
Total Liquidity                                      $ 767        $  874      
                                                                              

 
USG CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
(Unaudited)
                                                                    
                                                       Three months
                                                       ended March 31,
                                                       2013           2012 (1)
                                                                       
Operating Activities
Net income (loss)                                      $  2           $  (27 )
Less: Income from discontinued operations, net of         -              2    
tax
Income (loss) from continuing operations                  2              (29 )
                                                                       
Adjustments to reconcile income (loss) from
continuing operations to net cash:
Depreciation, depletion and amortization                  38             39
Share-based compensation expense                          4              9
Deferred income taxes                                     (2    )        1
Gain on asset dispositions                                -              (4  )
(Increase) decrease in working capital:
Receivables                                               (68   )        (67 )
Income taxes receivable                                   (1    )        (1  )
Inventories                                               (11   )        (7  )
Other current assets                                      1              10
Payables                                                  (37   )        12
Accrued expenses                                          (29   )        -
Increase in other assets                                  (1    )        -
(Decrease) increase in other liabilities                  (1    )        4
Other, net                                                5              1    
Net cash used for operating activities - continuing       (100  )        (32 )
operations
                                                                       
Investing Activities
Purchases of marketable securities                        (51   )        (23 )
Sales or maturities of marketable securities              50             170
Capital expenditures                                      (25   )        (13 )
Acquisition of mining rights                              (17   )        -
Net proceeds from asset dispositions                      -              10
Investments in joint ventures                             -              (7  )
Net cash (used for) provided by investing                 (43   )        137  
activities - continuing operations
                                                                       
Financing Activities
Repayment of debt                                         (1    )        (1  )
Loan from venture partner                                 2              -
Issuance of common stock                                  1              -
Repurchases of common stock to satisfy employee
tax withholding obligations                               (9    )        (3  )
Net cash used for financing activities - continuing       (7    )        (4  )
operations
                                                                       
Effect of exchange rate change on cash                    (1    )        4
                                                                       
Net (decrease) increase in cash and cash                  (151  )        105
equivalents
Cash and cash equivalents at beginning of period          546            365  
Cash and cash equivalents at end of period             $  395         $  470  
                                                                       
Supplemental Cash Flow Disclosures:
Interest paid                                          $  42          $  44
Income taxes paid, net of refunds received                2              4
Amount in accounts payable for capital expenditures       1              3
                                                                       
(1) Prior-period amounts have been adjusted to reflect our European businesses
as discontinued operations.
 

 
USG CORPORATION
CORE BUSINESS RESULTS
(dollars in millions)
(Unaudited)
                                                       
                                 Three months
                                 ended March 31,
                                 2013                       2012 (1)
Net Sales:
                                                             
North American Gypsum:
United States Gypsum             $     402                  $     381
Company
CGC Inc. (gypsum)                      78                         84
USG Mexico, S.A. de C.V.               43                         40
Other subsidiaries*                    14                         8
Eliminations                           (28      )                 (27     )
Total                                  509                        486      
                                                             
Worldwide Ceilings:
USG Interiors, Inc.                    115                        119
USG International                      34                         30
CGC Inc. (ceilings)                    16                         18
Eliminations                           (12      )                 (13     )
Total                                  153                        154      
                                                             
Building Products
Distribution:
L&W Supply Corporation                 281                        270      
                                                             
Eliminations                           (129     )                 (127    )
Total USG Corporation            $     814                  $     783      
                                                             
                                                             
Operating Profit (Loss):
                                                             
North American Gypsum:
United States Gypsum             $     44                   $     29
Company
CGC Inc. (gypsum)                      1                          3
USG Mexico, S.A. de C.V.               5                          5
Other subsidiaries (2)                 (4       )                 (5      )
Eliminations                           -                          -        
Total                                  46                         32       
                                                             
Worldwide Ceilings:
USG Interiors, Inc.                    23                         23
USG International                      1                          -
CGC Inc. (ceilings)                    3                          3        
Total                                  27                         26       
                                                             
Building Products
Distribution:
L&W Supply Corporation                 (2       )                 (6      )
                                                             
Corporate                              (18      )                 (22     )
Eliminations                           (4       )                 (6      )
Total USG Corporation            $     49                   $     24       
                                                             
(1) Prior-period amounts have been adjusted to reflect our European businesses
as discontinued operations.
(2) Includes our mining operation in Little Narrows, Nova Scotia, Canada, and
our shipping company.
 

 
USG CORPORATION
RECONCILIATION of ADJUSTED NET INCOME (LOSS) to REPORTED GAAP NET INCOME
(LOSS)
(dollars in millions)
(Unaudited)
                                                         
                                  Three months
                                  ended March 31,
                                  2013                        2012 (1)
                                                               
                                                               
Net income (loss) - GAAP          $      2                    $    (27    )
measure
                                                               
Less:
Income from discontinued                 -                         (2     )
operations, net of tax
Reduction in valuation
allowance for deferred tax               (3      )                 -
assets
                                                               
Add back:
Restructuring charges                    2                         2
                                                               
Adjusted net income (loss)        $      1                    $    (27    )
- Non-GAAP measure
                                                               
                                                               
(1) Prior-period amounts have been adjusted to reflect our European businesses
as discontinued operations.
                                                               
Adjusted Net Income (Loss) is a non-GAAP financial measure. We present
Adjusted Net Income (Loss) to provide additional information regarding our
current financial and operating performance because the measure excludes
certain items that may not be indicative of the company's core operating
results. In addition, Adjusted Net Income (Loss) is utilized by the company in
evaluating operating performance.
 

UNITED STATES GYPSUM COMPANY
WALLBOARD REALIZED SELLING PRICES AND SHIPMENTS
                                                                                                      
         1st Quarter          2nd Quarter          3rd Quarter          4th Quarter          Full Year
Year     Price     Volume     Price     Volume     Price     Volume     Price     Volume     Price     Volume
2013     $153.07   1.11
                                                                                                        
2012     $130.43   1.16       $132.09   1.15       $131.97   1.20       $132.26   1.22       $131.70   4.72
                                                                                                        
Wallboard price reflects amount per one thousand square feet.
Volume expressed in billions of square feet.

Contact:

USG Corporation
Media Inquiries:
Bob Williams, 312/436-4356
or
Investor Relations:
Ken Banas, 312/436-6098
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement