News Release
USG Corporation Reports Third Quarter 2018 Results
Price Improvement Offset by Cost Inflation
- Net sales of
$851 million up$56 million , or 7% - Operating profit of
$69 million down$22 million , or 24% - Net income of
$59 million down$7 million , or 11% - Diluted EPS of
$0.41 down$0.05 , or 11%
As compared to 2017’s third quarter, non-GAAP financial measures for 2018’s third quarter are below:
- Adjusted operating profit of
$90 million down$16 million , or 15% - Adjusted net income of
$65 million down$3 million , or 4% - Adjusted diluted EPS of
$0.45 down$0.02 , or 4%
Consolidated Third Quarter Results
Third quarter 2018 net sales were
USG recorded
U.S. Wallboard & Surfaces
The U.S. Wallboard & Surfaces segment net sales for the third quarter of 2018 increased
U.S. Performance Materials
The U.S. Performance Materials segment net sales increased by
U.S. Ceilings
The U.S. Ceilings segment net sales increased
USG Boral
USG Boral net sales decreased
Pending Knauf and USG Merger
On
Third Quarter 2018 Conference Call
In light of the announced transaction with Knauf, the Company will not hold a conference call for its results for the third quarter of 2018. The Company plans to file its Quarterly Report on Form 10-Q for the third quarter with the
About
Non-GAAP Financial Measures
In this press release, the Company’s financial results are provided both in accordance with accounting principles generally accepted in
Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to management’s expectations about future conditions, including but not limited to, statements regarding the proposed transaction with Knauf (the “proposed transaction”), including expected timing, completion and effects of the proposed transaction. Actual business, market or other conditions may differ materially from management’s expectations and, accordingly, may affect the Company’s sales and profitability, liquidity and future value. Any forward-looking statements represent the Company’s views only as of today and should not be relied upon as representing the Company’s views as of any subsequent date, and the Company undertakes no obligation to update any forward-looking statement. Among the risks, contingencies and uncertainties that could cause actual results to differ from those described in the forward-looking statements or could result in the failure of the proposed transaction to be completed are the following: the failure to obtain necessary regulatory or other governmental approvals for the proposed transaction, or if obtained, the possibility of being subjected to conditions that could result in a material delay in, or the abandonment of, the proposed transaction or otherwise have an adverse effect on the Company; continued availability of financing or alternatives for the financing provided in the Knauf debt commitment letter; the failure to satisfy required closing conditions; the potential impact on the USG Boral joint venture in the event the proposed transaction is not completed, including that, in connection with the execution of the merger agreement,
USG CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(dollars in millions, except share and per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||
2018 | 2017(a) | 2018 | 2017(a) | ||||||||||||||||||
Net sales | $ | 851 | $ | 795 | $ | 2,517 | $ | 2,373 | |||||||||||||
Cost of products sold | 699 | 633 | 2,042 | 1,884 | |||||||||||||||||
Gross profit | 152 | 162 | 475 | 489 | |||||||||||||||||
Selling and administrative expenses | 83 | 71 | 285 | 219 | |||||||||||||||||
Operating profit | 69 | 91 | 190 | 270 | |||||||||||||||||
Income from equity method investments | 12 | 15 | 33 | 42 | |||||||||||||||||
Net interest expense | (12 | ) | (14 | ) | (38 | ) | (52 | ) | |||||||||||||
Loss on extinguishment of debt | — | — | — | (22 | ) | ||||||||||||||||
Other income, net | 4 | 1 | 4 | 5 | |||||||||||||||||
Income from continuing operations before income taxes | 73 | 93 | 189 | 243 | |||||||||||||||||
Income tax expense | (15 | ) | (27 | ) | (37 | ) | (76 | ) | |||||||||||||
Income from continuing operations | 58 | 66 | 152 | 167 | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | 1 | — | 2 | (10 | ) | ||||||||||||||||
Net income | $ | 59 | $ | 66 | $ | 154 | $ | 157 | |||||||||||||
Earnings per average common share - basic: | |||||||||||||||||||||
Income from continuing operations | $ | 0.42 | $ | 0.47 | $ | 1.08 | $ | 1.16 | |||||||||||||
Income (loss) from discontinued operations | — | — | 0.01 | (0.07 | ) | ||||||||||||||||
Net income | $ | 0.42 | $ | 0.47 | $ | 1.09 | $ | 1.09 | |||||||||||||
Earnings per average common share - diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.46 | $ | 1.06 | $ | 1.14 | |||||||||||||
Income (loss) from discontinued operations | — | — | 0.01 | (0.07 | ) | ||||||||||||||||
Net income | $ | 0.41 | $ | 0.46 | $ | 1.07 | $ | 1.07 | |||||||||||||
Average common shares | 139,943,168 | 142,103,717 | 140,328,443 | 145,054,965 | |||||||||||||||||
Average diluted common shares | 142,869,326 | 144,681,691 | 142,584,390 | 147,584,023 | |||||||||||||||||
(a) - Historical results have been recast to reflect our adoption of Accounting Standards Update 2017-07 on January 1, 2018. |
USG CORPORATION | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(dollars in millions, except share data) | |||||||||||
(Unaudited) | |||||||||||
As of | As of | ||||||||||
September 30, 2018 | December 31, 2017 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 329 | $ | 394 | |||||||
Short-term marketable securities | 61 | 62 | |||||||||
Receivables (net of reserves - 2018 - $10 and 2017 - $9) | 303 | 233 | |||||||||
Inventories | 288 | 252 | |||||||||
Income taxes receivable | 16 | 15 | |||||||||
Other current assets | 34 | 35 | |||||||||
Total current assets | 1,031 | 991 | |||||||||
Long-term marketable securities | 38 | 37 | |||||||||
Property, plant and equipment (net of accumulated | |||||||||||
depreciation and depletion - 2018 - $2,146 and 2017 - $2,053) | 1,814 | 1,762 | |||||||||
Deferred income taxes | 252 | 287 | |||||||||
Equity method investments | 671 | 686 | |||||||||
Goodwill and intangible assets | 41 | 43 | |||||||||
Other assets | 43 | 45 | |||||||||
Total assets | $ | 3,890 | $ | 3,851 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Accounts payable | $ | 284 | $ | 280 | |||||||
Accrued expenses | 132 | 135 | |||||||||
Dividend payable | 72 | — | |||||||||
Income taxes payable | 2 | — | |||||||||
Total current liabilities | 490 | 415 | |||||||||
Long-term debt | 1,079 | 1,078 | |||||||||
Deferred income taxes | 5 | 4 | |||||||||
Pension and other postretirement benefits | 281 | 326 | |||||||||
Other liabilities | 172 | 183 | |||||||||
Total liabilities | 2,027 | 2,006 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock | 15 | 15 | |||||||||
Treasury stock at cost | (209 | ) | (169 | ) | |||||||
Additional paid-in capital | 3,039 | 3,057 | |||||||||
Accumulated other comprehensive loss | (397 | ) | (389 | ) | |||||||
Retained earnings (accumulated deficit) | (585 | ) | (669 | ) | |||||||
Total stockholders' equity | 1,863 | 1,845 | |||||||||
Total liabilities and stockholders' equity | $ | 3,890 | $ | 3,851 | |||||||
Other Information: | |||||||||||
Total cash and cash equivalents and marketable securities | $ | 428 | $ | 493 | |||||||
Borrowing availability under existing credit facilities | 198 | 155 | |||||||||
Total Liquidity | $ | 626 | $ | 648 | |||||||
USG CORPORATION | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
Nine months ended September 30, | |||||||||||
2018 | 2017 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | 154 | $ | 157 | |||||||
Less: Income (loss) from discontinued operations, net of tax | 2 | (10 | ) | ||||||||
Income from continuing operations | 152 | 167 | |||||||||
Adjustments to reconcile income from continuing operations to net cash: | |||||||||||
Depreciation, depletion and amortization | 113 | 98 | |||||||||
Loss on extinguishment of debt | — | 22 | |||||||||
Share-based compensation expense | 15 | 13 | |||||||||
Deferred income taxes | 33 | 75 | |||||||||
Gain on asset dispositions | (13 | ) | — | ||||||||
Loss on sale of equity method investment | 8 | — | |||||||||
Income from equity method investments | (33 | ) | (42 | ) | |||||||
Dividends received from equity method investments | 16 | 23 | |||||||||
Pension settlement | — | 10 | |||||||||
Change in operating assets and liabilities | (152 | ) | (164 | ) | |||||||
Other, net | 8 | 1 | |||||||||
Net cash provided by operating activities of continuing operations | 147 | 203 | |||||||||
Net cash provided by (used for) operating activities of discontinued operations | 2 | (1 | ) | ||||||||
Net cash provided by operating activities | $ | 149 | $ | 202 | |||||||
Investing Activities | |||||||||||
Purchases of marketable securities | (75 | ) | (75 | ) | |||||||
Sales or maturities of marketable securities | 73 | 69 | |||||||||
Capital expenditures | (159 | ) | (109 | ) | |||||||
Net proceeds from asset dispositions | 14 | 2 | |||||||||
Net proceeds from sale of equity method investment | 3 | — | |||||||||
Working capital adjustment from acquisition of business | 2 | — | |||||||||
Other investing activities | 2 | 1 | |||||||||
Net cash used for investing activities of continuing operations | (140 | ) | (112 | ) | |||||||
Net cash provided by investing activities of discontinued operations | — | 6 | |||||||||
Net cash used for investing activities | $ | (140 | ) | $ | (106 | ) | |||||
Financing Activities | |||||||||||
Issuance of debt | — | 500 | |||||||||
Repayment of debt | — | (520 | ) | ||||||||
Payment of debt issuance fees | — | (8 | ) | ||||||||
Issuances of common stock | 10 | 3 | |||||||||
Repurchase of common stock | (76 | ) | (153 | ) | |||||||
Repurchases of common stock to satisfy employee tax withholding obligations | (7 | ) | (4 | ) | |||||||
Net cash used for financing activities of continuing operations | $ | (73 | ) | $ | (182 | ) | |||||
Effect of exchange rate changes on cash | (1 | ) | 6 | ||||||||
Net decrease in cash and cash equivalents from continuing operations | $ | (67 | ) | $ | (85 | ) | |||||
Net increase in cash and cash equivalents from discontinued operations | 2 | 5 | |||||||||
Net decrease in cash and cash equivalents | (65 | ) | (80 | ) | |||||||
Cash and cash equivalents at beginning of period | 394 | 427 | |||||||||
Cash and cash equivalents at end of period | $ | 329 | $ | 347 | |||||||
USG CORPORATION | |||||||||||||||||||||
SEGMENT BUSINESS RESULTS | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Net Sales |
|||||||||||||||||||||
U.S. Wallboard and Surfaces | $ | 487 | $ | 466 | $ | 1,440 | $ | 1,417 | |||||||||||||
U.S. Performance Materials | 101 | 92 | 298 | 278 | |||||||||||||||||
U.S. Ceilings | 143 | 125 | 420 | 355 | |||||||||||||||||
Canada | 110 | 100 | 342 | 300 | |||||||||||||||||
Other | 66 | 63 | 191 | 178 | |||||||||||||||||
Eliminations | (56 | ) | (51 | ) | (174 | ) | (155 | ) | |||||||||||||
Total USG Corporation Net Sales | $ | 851 | $ | 795 | $ | 2,517 | $ | 2,373 | |||||||||||||
Operating Profit (Loss)(a) |
|||||||||||||||||||||
U.S. Wallboard and Surfaces | $ | 64 | $ | 71 | $ | 194 | $ | 228 | |||||||||||||
U.S. Performance Materials | (1 | ) | 6 | (6 | ) | 20 | |||||||||||||||
U.S. Ceilings | 24 | 25 | 66 | 68 | |||||||||||||||||
Canada | 6 | 3 | 16 | 7 | |||||||||||||||||
Other | 4 | 6 | 12 | 8 | |||||||||||||||||
Corporate | (28 | ) | (20 | ) | (92 | ) | (61 | ) | |||||||||||||
Total USG Corporation Operating Profit |
$ | 69 | $ | 91 | $ | 190 | $ | 270 | |||||||||||||
USG Boral Building Products (UBBP) |
|||||||||||||||||||||
Net sales | $ | 305 | $ | 324 | $ | 889 | $ | 887 | |||||||||||||
Operating profit | 32 | 43 | 91 | 118 | |||||||||||||||||
Net income attributable to UBBP | 24 | 30 | 67 | 83 | |||||||||||||||||
USG share of income from UBBP | 12 | 15 | 33 | 42 | |||||||||||||||||
(a) - Historical results have been recast to reflect our adoption of Accounting Standards Update 2017-07 on January 1, 2018. |
USG CORPORATION | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES | ||||||||||||||||||||
(dollars in millions, except share and per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net sales - GAAP | $ | 851 | $ | 795 | $ | 2,517 | $ | 2,373 | ||||||||||||
Adoption of revenue standard | — | — | 9 | — | ||||||||||||||||
Non-cash purchase accounting amortization | 1 | — | 5 | — | ||||||||||||||||
Adjusted Net sales - Non-GAAP | $ | 852 | $ | 795 | $ | 2,531 | $ | 2,373 | ||||||||||||
U.S. Wallboard and Surfaces net sales - GAAP | $ | 487 | $ | 466 | $ | 1,440 | $ | 1,417 | ||||||||||||
Adoption of revenue standard | — | — | 6 | — | ||||||||||||||||
U.S. Wallboard and Surfaces adjusted net sales - Non-GAAP | $ | 487 | $ | 466 | $ | 1,446 | $ | 1,417 | ||||||||||||
U.S. Performance Materials net sales - GAAP | $ | 101 | $ | 92 | $ | 298 | $ | 278 | ||||||||||||
Adoption of revenue standard | — | — | 1 | — | ||||||||||||||||
U.S. Performance Materials adjusted net sales - Non-GAAP | $ | 101 | $ | 92 | $ | 299 | $ | 278 | ||||||||||||
U.S. Ceilings net sales - GAAP | $ | 143 | $ | 125 | $ | 420 | $ | 355 | ||||||||||||
Adoption of revenue standard | — | — | 2 | — | ||||||||||||||||
Non-cash purchase accounting amortization | 1 | — | 5 | — | ||||||||||||||||
U.S. Ceilings adjusted net sales - Non-GAAP | $ | 144 | $ | 125 | $ | 427 | $ | 355 | ||||||||||||
Operating profit - GAAP(a) | $ | 69 | $ | 91 | $ | 190 | $ | 270 | ||||||||||||
Income from equity method investments | 12 | 15 | 33 | 42 | ||||||||||||||||
Knauf merger related costs | 5 | — | 14 | — | ||||||||||||||||
Non-cash purchase accounting amortization | 1 | — | 5 | — | ||||||||||||||||
Integration and realignment costs | 3 | — | 9 | — | ||||||||||||||||
Gain on sale of surplus property | — | — | (13 | ) | — | |||||||||||||||
Loss on contract termination | — | — | 8 | — | ||||||||||||||||
Contractual legal judgment | — | — | 5 | — | ||||||||||||||||
Adoption of revenue standard | — | — | 3 | — | ||||||||||||||||
Adjusted operating profit - Non-GAAP | $ | 90 | $ | 106 | $ | 254 | $ | 312 | ||||||||||||
U.S. Wallboard and Surfaces operating profit - GAAP(a) | $ | 64 | $ | 71 | $ | 194 | $ | 228 | ||||||||||||
Gain on sale of surplus property | — | — | (13 | ) | — | |||||||||||||||
Adoption of revenue standard | — | — | 2 | — | ||||||||||||||||
U.S. Wallboard and Surfaces adjusted operating profit - Non-GAAP | $ | 64 | $ | 71 | $ | 183 | $ | 228 | ||||||||||||
U.S. Performance Materials operating profit - GAAP(a) | $ | (1 | ) | $ | 6 | $ | (6 | ) | $ | 20 | ||||||||||
Loss on contract termination | — | — | 8 | — | ||||||||||||||||
U.S. Performance Materials adjusted operating profit - Non-GAAP | $ | (1 | ) | $ | 6 | $ | 2 | $ | 20 | |||||||||||
USG CORPORATION | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES | |||||||||||||||||||||
(dollars in millions, except share and per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
U.S. Ceilings operating profit - GAAP(a) | $ | 24 | $ | 25 | $ | 66 | $ | 68 | |||||||||||||
Integration and realignment costs | 2 | — | 5 | — | |||||||||||||||||
Adoption of revenue standard | — | — | 1 | — | |||||||||||||||||
Non-cash purchase accounting amortization | 1 | — | 5 | — | |||||||||||||||||
U.S. Ceilings adjusted operating profit - Non-GAAP | $ | 27 | $ | 25 | $ | 77 | $ | 68 | |||||||||||||
UBBP operating profit - GAAP | $ | 32 | $ | 43 | $ | 91 | $ | 118 | |||||||||||||
Income from equity method investments owned by UBBP | 4 | 5 | 12 | 8 | |||||||||||||||||
Operating profit attributable to non-controlling interest, pre-tax | (1 | ) | (2 | ) | (3 | ) | (5 | ) | |||||||||||||
UBBP adjusted operating profit - Non-GAAP | $ | 35 | $ | 46 | $ | 100 | $ | 121 | |||||||||||||
Selling and Administrative Expenses - GAAP(a) | $ | 83 | $ | 71 | $ | 285 | $ | 219 | |||||||||||||
Knauf merger related costs | (5 | ) | — | (14 | ) | — | |||||||||||||||
Integration and realignment costs | (3 | ) | — | (9 | ) | — | |||||||||||||||
Loss on contract termination | — | — | (8 | ) | — | ||||||||||||||||
Contractual legal judgment | — | — | (5 | ) | — | ||||||||||||||||
Adjusted Selling and Administrative Expenses - Non-GAAP | $ | 75 | $ | 71 | $ | 249 | $ | 219 | |||||||||||||
Net income - GAAP | $ | 59 | $ | 66 | $ | 154 | $ | 157 | |||||||||||||
(Income) loss from discontinued operations, net of tax | (1 | ) | — | (2 | ) | 10 | |||||||||||||||
Knauf merger related costs | 5 | — | 14 | — | |||||||||||||||||
Non-cash purchase accounting amortization | 1 | — | 5 | — | |||||||||||||||||
Integration and realignment costs | 3 | — | 9 | — | |||||||||||||||||
Gain on sale of surplus property | — | — | (13 | ) | — | ||||||||||||||||
Loss on contract termination | — | — | 8 | — | |||||||||||||||||
Loss on sale of joint venture | — | — | 8 | — | |||||||||||||||||
Contractual legal judgment | — | — | 5 | — | |||||||||||||||||
Adoption of revenue standard | — | — | 3 | — | |||||||||||||||||
Pension settlement charge | — | 3 | — | 10 | |||||||||||||||||
Loss on extinguishment of debt | — | — | — | 22 | |||||||||||||||||
Tax effect on adjustments (b) | (2 | ) | (1 | ) | (10 | ) | (12 | ) | |||||||||||||
Adjusted net income - Non-GAAP | $ | 65 | $ | 68 | $ | 181 | $ | 187 | |||||||||||||
USG CORPORATION | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES | |||||||||||||||||||||
(dollars in millions, except share and per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Earnings per average diluted common share - GAAP | $ | 0.41 | $ | 0.46 | $ | 1.07 | $ | 1.07 | |||||||||||||
Adjustments per average diluted common share: | |||||||||||||||||||||
(Income) loss from discontinued operations, net of tax | — | — | (0.01 | ) | 0.07 | ||||||||||||||||
Knauf merger related costs | 0.04 | — | 0.10 | — | |||||||||||||||||
Non-cash purchase accounting amortization | — | — | 0.02 | — | |||||||||||||||||
Integration and realignment costs | 0.02 | — | 0.06 | — | |||||||||||||||||
Gain on sale of surplus property | — | — | (0.09 | ) | — | ||||||||||||||||
Loss on contract termination | — | — | 0.06 | — | |||||||||||||||||
Loss on sale of joint venture | — | — | 0.06 | — | |||||||||||||||||
Contractual legal judgment | — | — | 0.03 | — | |||||||||||||||||
Adoption of revenue standard | — | — | 0.02 | — | |||||||||||||||||
Pension settlement charge | — | 0.02 | — | 0.07 | |||||||||||||||||
Loss on extinguishment of debt | — | — | — | 0.15 | |||||||||||||||||
Tax effect on adjustments (b) | (0.02 | ) | (0.01 | ) | (0.06 | ) | (0.08 | ) | |||||||||||||
Adjusted earnings per adjusted average diluted |
$ | 0.45 | $ | 0.47 | $ | 1.26 | $ | 1.28 | |||||||||||||
Average diluted common shares – GAAP | 142,869,326 | 144,681,691 | 142,584,390 | 147,584,023 | |||||||||||||||||
Net income - GAAP | $ | 59 | $ | 66 | $ | 154 | $ | 157 | |||||||||||||
Less: (Income) loss from discontinued operations, net of tax | (1 | ) | — | (2 | ) | 10 | |||||||||||||||
Add: Interest expense, net | 12 | 14 | 38 | 52 | |||||||||||||||||
Add: Income tax expense | 15 | 27 | 37 | 76 | |||||||||||||||||
Add: Depreciation, depletion and amortization (c) | 35 | 35 | 105 | 101 | |||||||||||||||||
EBITDA - Non-GAAP | $ | 120 | $ | 142 | $ | 332 | $ | 396 | |||||||||||||
Add: Share-based compensation expense | 5 | 4 | 15 | 13 | |||||||||||||||||
Add: Knauf merger related costs | 5 | — | 14 | — | |||||||||||||||||
Add: Non-cash purchase accounting amortization | 1 | — | 5 | — | |||||||||||||||||
Add: Integration and realignment costs | 3 | — | 9 | — | |||||||||||||||||
Add: Gain on sale of surplus property | — | — | (13 | ) | — | ||||||||||||||||
Add: Loss on contract termination | — | — | 8 | — | |||||||||||||||||
Add: Loss on sale of joint venture | — | — | 8 | — | |||||||||||||||||
Add: Contractual legal judgment | — | — | 5 | — | |||||||||||||||||
Add: Adoption of revenue standard | — | — | 3 | — | |||||||||||||||||
Add: Pension settlement charge | — | 3 | — | 10 | |||||||||||||||||
Add: Loss on extinguishment of debt | — | — | — | 22 | |||||||||||||||||
Less: USG's equity income from UBBP | (12 | ) | (15 | ) | (33 | ) | (42 | ) | |||||||||||||
Add: USG's share of UBBP Adjusted EBITDA | 24 | 28 | 68 | 79 | |||||||||||||||||
Adjusted EBITDA - Non-GAAP | $ | 146 | $ | 162 | $ | 421 | $ | 478 | |||||||||||||
USG CORPORATION | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES | ||||||||||||||||||||
(dollars in millions, except share and per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
UBBP Net Income - GAAP | $ | 24 | $ | 32 | $ | 69 | $ | 86 | ||||||||||||
Less: Net income attributable to non-controlling interest | — | 2 | 2 | 3 | ||||||||||||||||
Net income attributable to UBBP - GAAP | $ | 24 | $ | 30 | $ | 67 | $ | 83 | ||||||||||||
Add: income tax expense | 12 | 15 | 34 | 43 | ||||||||||||||||
Add: Depreciation, depletion and amortization | 12 | 12 | 36 | 33 | ||||||||||||||||
Total UBBP Adjusted EBITDA - Non-GAAP | $ | 48 | $ | 57 | $ | 137 | $ | 159 | ||||||||||||
USG's share of UBBP Adjusted EBITDA - Non-GAAP | $ | 24 | $ | 28 | $ | 68 | $ | 79 | ||||||||||||
(a) - Historical results have been recast to reflect our adoption of Accounting Standards Update 2017-07 on January 1, 2018. |
(b) - Tax effect on adjustments is calculated using country specific statutory rates. |
(c) - Depreciation, depletion and amortization excludes the amortization of deferred financing fees which is included in interest expense. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181025005123/en/
Source:
Media
Kathleen Prause
(312) 436-6607
kprause@usg.com
or
Investors
Bill Madsen
(312) 436-5349
investorrelations@usg.com