This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buckeye's CEO Presents At UBS Global Paper & Forest Products Conference (Transcript)

And then real quick, we’ll go to the next one. This is our agenda. This is what I plan to talk about today with you. As you can see particularly if you are familiar with, if you are not familiar with us. We have made some excellent progress over the last few years, growing our sales, our EBITDA and earnings per share.

We’ve been generating returns well above our cost-to-capital and we continue to generate strong fee cash flow. The bulk of our free cash flow has been used to reduce our net debt and today our net debt is close to zero. We are clearly under leveraged and positioned, and this has position us to take advantage of investment opportunities.

Our CapEx has increased significantly as we work on high rated return projects, it also enables us to look at complimentary acquisitions and return cash to shareholders through the combination of dividends and share repurchases.

Reflecting that, we initiated our first dividend in Buckeye’s history on August of 2010 and we have raised it four times since then and have repurchased over 3% of our stock outstanding during fiscal year 2012.

Despite our strong performance, our stock trades at lower EBITDA multiples in the average paper company. Analysts compare us to other paper companies most of which we have little in common world.

Looking at our margins, our return on invested capital and product mix all of which I will be discussing. We are much closer to our financial and product characteristic in specialty chemical companies, which trade at much high multiples. Many of our customers are chemical companies. Our major product, high-purity pulp is a chemical product.

Now let me explain our products and results, so if you can understand us better and view us properly, after that I will discuss our vision and how we are positioned to continue to generate increased shareholder value.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs