EX-99.1 5 a2145865zex-99_1.htm EX-99.1
QuickLinks -- Click here to rapidly navigate through this document


Exhibit 99.1

SMURFIT-STONE CONTAINER ENTERPRISES, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA

        On November 1, 2004, Smurfit-Stone Container Corporation ("SSCC") merged the operations of its two principal operating subsidiaries, Stone Container Corporation ("Stone Container") and Jefferson Smurfit Corporation (U.S.) ("JSC(U.S.)"), with Stone Container as the surviving entity (the "Merger"). Stone Container was then renamed Smurfit-Stone Container Enterprises, Inc. ("SSCE"). JSCE, Inc. ("JSCE"), which was a holding company that conducted its operations through its wholly-owned subsidiary, JSC(U.S.), first merged with and into JSC(U.S.), with JSC(U.S.) as the surviving company, prior to the merger of Stone Container and JSC(U.S.). As a result, the financial data presented for JSC(U.S.) in the following unaudited pro forma financial statements is the same as for JSCE.

        The following unaudited pro forma condensed consolidated statements of operations were prepared to illustrate the estimated effects of the merger of Stone Container and JSC(U.S.), as if the transaction had occurred as of the beginning of the periods presented. The following unaudited pro forma condensed consolidated balance sheet was prepared as if the transaction had occurred as of June 30, 2004.

        The pro forma adjustments are based upon available information and upon certain assumptions that we believe are reasonable. The unaudited pro forma condensed consolidated financial statements and accompanying notes should be read in conjunction with the historical financial statements and the related notes thereto of Stone Container and JSCE.

        The unaudited pro forma condensed consolidated financial statements are provided for informational purposes only and do not purport to represent what our financial position or results of operations would actually have been if the merger of Stone Container and JSC(U.S.) had in fact occurred at such dates or to project our financial position or results of operations for any future date or period.


SMURFIT-STONE CONTAINER ENTERPRISES, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

 
   June 30, 2004
  
 
   Stone
Container
Historical
   JSCE, Inc Historical(c)
   Intercompany Eliminations
   SSCE
Pro Forma
  
 
   (in millions)

  
ASSETS                          
Current assets:                          
  Cash and cash equivalents   $ 4   $ 6   $     $ 10  
  Receivables     274     368     (27 )(a)   615  
  Inventories     499     222           721  
  Deferred income taxes     145     16           161  
  Prepaid expenses and other current assets     46     20           66  
   
 
 
 
 
    Total current assets     968     632     (27 )   1,573  
Property, plant and equipment, net     3,455     1,333           4,788  
Timberland, net     42     2           44  
Goodwill     3,117     184           3,301  
Notes receivable from SSCC           617   (e)         617  
Other assets     213     150           363  
   
 
 
 
 
    $ 7,795   $ 2,918   $ (27 ) $ 10,686  
   
 
 
 
 

LIABILITIES AND STOCKHOLDER'S EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:                          
  Current maturities of long-term debt   $ 17   $ 435   $     $ 452   (d)
  Accounts payable     329     245     (27 )(a)   547  
  Other accrued liabilities     326     176           502  
   
 
 
 
 
    Total current liabilities     672     856     (27 )   1,501  
Long-term debt, less current maturities     3,230     1,188           4,418   (d)
Other long-term liabilities     671     373           1,044  
Deferred income taxes     527     464           991  
Stockholder's equity:                          
  Common stock and additional paid-in capital     3,016     1,205           4,221  
  Retained earnings (deficit)     (201 )   (998 )         (1,199 )
  Accumulated other comprehensive income (loss)     (120 )   (170 )         (290 )
   
 
 
 
 
    Total stockholder's equity     2,695     37     —     2,732  
   
 
 
 
 
    $ 7,795   $ 2,918   $ (27 ) $ 10,686  
   
 
 
 
 

See accompanying notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.


SMURFIT-STONE CONTAINER ENTERPRISES, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
   Stone
Container
Historical
   JSCE, Inc Historical(c)
   Intercompany Eliminations
   SSCE
Pro Forma
  
 
   (in millions)

  
Six Months Ended June 30, 2004:                          
  Net sales   $ 2,626   $ 1,865   $ (511 )(b) $ 3,980  
  Cost of goods sold     2,369     1,674     (511 )(b)   3,532  
  Selling and administrative expenses     229     162           391  
  Restructuring charges     10     7           17  
   
 
 
 
 
  Income from operations     18     22     —     40  
  Interest expense, net     (118 )   (54 )         (172 )(d)
  Interest income from SSCC           41   (e)         41  
  Other income (expense)—net     11     2           13  
   
 
 
 
 
  Income (loss) from continuing operations before income taxes and cumulative effect of accounting change     (89 )   11     —     (78 )
  (Provision for) benefit from income taxes     37     (4 )         33  
   
 
 
 
 
  Income (loss) from continuing operations before cumulative effect of accounting change   $ (52 ) $ 7   $ —   $ (45 )
   
 
 
 
 

Year Ended December 31, 2003:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Net sales   $ 5,051   $ 3,651   $ (980 )(b) $ 7,722  
  Cost of goods sold     4,430     3,222     (980 )(b)   6,672  
  Selling and administrative expenses     528     355           883  
  Restructuring charges     94     21           115  
  Loss on sale of assets           5           5  
   
 
 
 
 
  Income (loss) from operations     (1 )   48     —     47  
  Interest expense, net     (237 )   (104 )         (341 )(d)
  Interest income from SSCC           80   (e)         80  
  Gain (loss) from early extinguishment of debt     (1 )   (2 )         (3 )
  Other income (expense)—net     (44 )   3           (41 )
   
 
 
 
 
  Income (loss) from continuing operations before income taxes and cumulative effect of accounting change     (283 )   25     —     (258 )
  (Provision for) benefit from income taxes     116     (5 )         111  
   
 
 
 
 
  Income (loss) from continuing operations before cumulative effect of accounting change   $ (167 ) $ 20   $ —   $ (147 )
   
 
 
 
 

See accompanying notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.


SMURFIT-STONE CONTAINER ENTERPRISES, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intercompany Elimination Adjustments

(a)
To eliminate the effects of accounts receivables and accounts payables between Stone Container and JSC(U.S.).

(b)
To eliminate the effects of sales transactions between Stone Container and JSC(U.S.).

JSCE, Inc. Historical and SSCE Pro Forma

(c)
To incorporate, except for adjustments (a) and (b), the JSC(U.S.) balance sheet and income statements into Stone Container in connection with the Merger. Stone Container and JSC(U.S.) are entities under common control and, therefore, the historical cost basis of the acquired entity, JSC(U.S.), carries over into the combined entity.

(d)
In connection with the Merger, SSCE and Smurfit-Stone Container Canada, Inc., as borrowers, and SSCC, as guarantor, entered into a new credit agreement, which refinances and replaces SSCC's existing credit agreements in their entirety. The impact of the new credit agreement would not be material to the Company's financial statements and has therefore been excluded from these pro forma financial statements.

(e)
SSCE's notes receivable from SSCC mature on November 18, 2004. SSCC is considering various options to repay the notes, including exchanging certain of its shares of common stock of SSCE for the notes or extending the maturity of the notes. If an exchange of shares for the notes were to occur, SSCE's stockholder's equity would be reduced by the amount of the notes receivable from SSCC and interest income from SSCC in future periods would be eliminated.



QuickLinks

SMURFIT-STONE CONTAINER ENTERPRISES, INC. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA
SMURFIT-STONE CONTAINER ENTERPRISES, INC. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SMURFIT-STONE CONTAINER ENTERPRISES, INC. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SMURFIT-STONE CONTAINER ENTERPRISES, INC. NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS