NewPage Announces Third Quarter 2014 Financial Results

NewPage Holdings Inc. ("NewPage") today announced its results of operations for the third quarter of 2014.

Net sales in the third quarter of 2014 were $796 million compared to $780 million in the third quarter of 2013. Net sales improved due to higher sales volume of paper partially offset by lower paper prices. Paper pricing is impacted by lower industry demand. Paper sales volume totaled 876,000 tons and 843,000 tons for the third quarter of 2014 and 2013. Average paper prices were $884 per ton and $892 per ton in the third quarter of 2014 and 2013.

For the third quarter of 2014, net income was $8 million compared to $21 million in the third quarter of 2013. The decrease was the result of higher input costs, higher interest expense and lower paper prices, partially offset by lower non-cash stock compensation expense, lower pension expense and other cost reduction initiatives.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization as further adjusted as shown in the attached reconciliation) was $83 million in the third quarter of 2014 compared to $85 million in third quarter of 2013.

NewPage ended the third quarter with total liquidity of $287 million, consisting of $278 million of availability under the revolving credit facility and $9 million of available cash and cash equivalents.

Operating cash flows were $29 million in the third quarter of 2014 compared to $7 million in the third quarter of 2013. For the nine months ended September 30, 2014, the company used $22 million of cash in operations compared to $16 million for the nine months ended September 30, 2013. The increase is primarily the result of higher input costs, driven by weather-related factors, higher cash interest and other cash charges associated with the February 2014 debt refinancing, partially offset by a reduction in cash requirements for bankruptcy-related items. Cash used for operating activities during the nine months ended September 30, 2013 includes $60 million in non-recurring bankruptcy-related payments.

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