Georgia Gulf Announces Preliminary 2012 Financial Results
Georgia Gulf Corporation (NYSE: GGC) today announced preliminary financial results for the year ended December 31, 2012.
The company expects to report net sales of approximately $3.3 billion for 2012, or about 3 percent higher than 2011. The company expects to report adjusted EBITDA of $330 million to $340 million for 2012. The company had approximately $200 million of cash and cash equivalents as of December 31, 2012. Georgia Gulf’s total debt position as of December 31, 2012, was approximately $448 million including no cash drawn under its ABL Revolver.
“We are very pleased to announce preliminary results that exceeded our expectations for 2012,” said Paul Carrico, president and chief executive officer. “In the fourth quarter of 2012, we benefitted from higher operating rates and stronger export demand and pricing for our chemical products than in the fourth quarter of 2011, as well as favorable feedstock costs.
“Going forward, we believe low-cost natural gas in North America will remain globally advantaged as a source of energy. We expect this to place Gulf Coast chlorovinyls producers in a strong position to supply domestic and export customers,” Carrico said. “We also believe our pending merger with PPG’s commodity chemicals business will create an integrated chemicals and building products leader that is well positioned to benefit from this cost advantage and expanding global demand for our products.”About Georgia Gulf Georgia Gulf Corporation is a leading, integrated North American manufacturer of two chemical lines, chlorovinyls and aromatics, and manufactures vinyl-based building and home improvement products. The Company's vinyl-based building and home improvement products are marketed under Royal Building Products and Exterior Portfolio brands. Georgia Gulf, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America to provide industry-leading service to customers. For more information, visit www.ggc.com. Georgia Gulf announced January 14, 2013, that when its pending merger with PPG’s commodity chemicals business is completed, the combined organization will be Axiall Corporation and will be traded on the New York Stock Exchange under the ticker symbol of AXLL. More information about Axiall and the pending company’s brand story can be found at www.axiallcorp.com. Non-GAAP Financial Measure We supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) with adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, cash and non-cash restructuring charges and certain other charges, if any, related to financial restructuring and business improvement initiatives, gains (loss) on substantial modification of debt and sales of certain assets, certain purchase accounting and certain non-income tax reserve adjustments, professional fees related to a previously disclosed and withdrawn unsolicited offer to acquire Georgia Gulf and the proposed merger with the PPG commodity chemicals business, goodwill, intangibles, and other long-lived asset impairments, and interest expense related to the OMERS sale-leaseback transaction or as otherwise applicable) because investors commonly use adjusted EBITDA as a main component of valuation analysis of cyclical companies such as Georgia Gulf. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income (loss) as a measure of performance or to cash provided by operating activities as a measure of liquidity. In addition, our calculation of adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. We generally provide reconciliations of the historical non-GAAP measures included herein to the most directly comparable GAAP measures, however, we have not provided a reconciliation of this forward-looking non-GAAP financial measure to the directly comparable GAAP measure because, due primarily to the timing of the closing of our financial records for the fiscal year ended December 31, 2012, we do not currently have sufficient data to accurately provide this reconciliation to net income without unreasonable efforts. We believe the probable significance of providing this forward-looking non-GAAP financial measure without a reconciliation to net income is that investors and analysts will have certain information that we believe to be useful and meaningful regarding our expected results for the fiscal year ended December 31, 2012, but that such investors and analysts will not have all of our expected financial results on a GAAP basis. As a result, investors and analysts may be unable to accurately compare our expected results to our historical results or the results or expected results of other companies who may have treated such matters differently. Our management believes that, given the inherent uncertainty of forward-looking statements, our investors and analysts will be able to understand and appropriately take into account the limitations in the information we have provided. Investors are cautioned that until our financial records are closed for the fiscal year, we cannot predict the occurrence, timing or amount of all non-GAAP items that we exclude from adjusted EBITDA. As a result, the actual effect of these items, when determined, could potentially be significant to the calculation of adjusted EBITDA for the fiscal year ended December 31, 2012.
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