Polyester producer Wellman reports record PET resin sales in Q1
27 Apr '07
3 min read
"We also expect to significantly reduce debt in the next 10 to 16 months as a result of operating improvements, cost savings and exploring strategic alternatives for our non-core businesses.”
We have provided two non-GAAP measures, “EBITDA, as defined” and “Proforma Hurricane EBITDA, as defined”. We have provided EBITDA, as defined because our major debt agreements use this measurement as a key component which affects our ability to incur additional indebtedness, make investments, and make certain restricted payments, such as dividends.
It is also an important measurement tool for (1) financial institutions that provide us with capital; (2) investors; and (3) our Board and management. In each instance, we use EBITDA, as defined because it excludes items that are not expected to impact the long-term cash flow of the business and are not an indication of our ongoing operating performance.
Our Board, our chief decision maker, and senior management use EBITDA, as defined to evaluate the operating performance of our business segments. EBITDA, as defined, is calculated in accordance with our debt agreements by adding Earnings (Loss) from Continuing Operations, Income Tax Expense (Benefit), Interest Expense, Depreciation & Amortization and Permitted Adjustments.
We have also provided Proforma Hurricane EBITDA, as defined, to provide comparable EBITDA information which adds an estimate of lost profits as a result of the Gulf Coast hurricanes to our EBITDA. We have provided this because of the reasons listed above and because we do not anticipate our ongoing business incurring lost profits of this magnitude as a result of hurricanes in the future. Proforma Hurricane EBITDA, as defined is EBITDA, as defined plus an estimate of Lost Profits due to the Gulf Coast hurricanes.
Wellman Inc manufactures and markets high-quality polyester products, including PermaClear brand PET (polyethylene terephthalate) packaging resin and Fortrel brand polyester fiber.
Wellman Inc will conduct a conference call to review 1st quarter 2007 results at 1:30 P.M. Eastern Time on Friday, April 27, 2007. This call is available in a live Webcast on the Wellman Inc.
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