For the 3Q 2014, net income was $8 million compared to $21 million in the 3Q 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 3Q 2014 compared to $85 million in 3Q 2013.
NewPage ended the 3Q 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 3Q 2014 compared to $7 million in the 3Q 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.
NewPage is a leading producer of printing and specialty papers in North America. NewPage is headquartered in Miamisburg, Ohio, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.
