Earnings affected by higher planned maintenance and related costs
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).
- First quarter 2016 net earnings of
$0.06 per share; earnings before items1 of$0.35 per share - Closed paper machine at Ashdown mill, reducing annual paper capacity by 364,000 tons
- Price increases announced for softwood pulp and several uncoated freesheet grades
Excluding items listed below, the Company had earnings before items1 of
First quarter 2016 items:
- Closure and restructuring costs of
$2 million ($2 million after tax); and - Impairment of property, plant & equipment of
$21 million ($16 million after tax).
Fourth quarter 2015 items:
- Closure and restructuring costs of
$1 million ($1 million after tax); and - Impairment of property, plant & equipment of
$20 million ($12 million after tax).
First quarter 2015 items:
- Closure and restructuring costs of
$1 million ($1 million after tax); - Gain on disposal of property, plant and equipment of
$1 million ($1 million after tax); and - Impairment of property, plant & equipment of
$19 million ($12 million after tax).
“Although our teams were very agile and executed well on things under our control, our results in pulp and paper were negatively impacted by unexpected costs during the extended maintenance outages,” said John D. Williams, President and Chief Executive Officer. “Given the timing of maintenance activity and costs related to the fluff pulp conversion, our first half results are expected to remain subdued before significantly improving in the second half as the benefits from the Ashdown conversion, lower maintenance and higher prices accrue.”
Mr. Williams added, “We delivered strong year over year EBITDA growth in Personal Care with procurement initiatives and manufacturing cost savings driving the majority of the increase. During the quarter, we began delivering on our new sales growth wins including the successful launch of a partner brand and the ramping up of volume for a major account. We are on track to realize the top-line benefits of the new customer wins through 2016.”
QUARTERLY REVIEW
Operating income before items1 was $41 million in the first quarter of 2016 compared to an operating income before items1 of
(In millions of dollars) | 1Q 2016 | 4Q 2015 | ||||||
Sales | $ | 1,287 | $ | 1,314 | ||||
Operating income (loss) | ||||||||
Pulp and Paper segment | 19 | 86 | ||||||
Personal Care segment | 14 | 16 | ||||||
Corporate |
(15) |
|
(8) |
|
||||
Total | 18 | 94 | ||||||
Operating income before items1 | 41 | 115 | ||||||
Depreciation and amortization | 89 | 89 |
The decrease in operating income before items1 in the first quarter of 2016 was the result of increased maintenance costs, lower productivity in pulp and paper, lower volume, higher raw material costs, lower average selling prices, higher selling, general and administrative expenses and other costs. These factors were partially offset by favorable exchange rates and lower freight costs.
When compared to the fourth quarter of 2015, manufactured paper shipments were down 1.4% and pulp shipments decreased 4.4%. The shipments-to-production ratio for paper was 100% in the first quarter of 2016, compared to 95% in the fourth quarter of 2015. Paper inventories remained flat and pulp inventories decreased by 13,000 metric tons when compared to the fourth quarter of 2015.
LIQUIDITY AND CAPITAL
Cash flow provided from operating activities amounted to
During the quarter,
OUTLOOK
The second quarter is expected to be affected by seasonally higher maintenance activity in our pulp and paper business in addition to costs of approximately
EARNINGS CONFERENCE CALL
The Company will hold a conference call today at
The Company will release its second quarter 2016 earnings results on
About
Forward-Looking Statements
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2015 as filed with the
Highlights
(In millions of dollars, unless otherwise noted)
Three months | Three months | |||||||
ended | ended | |||||||
March 31, | March 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
$ |
$ | |||||||
Selected Segment Information | ||||||||
Sales | ||||||||
Pulp and Paper | 1,085 | 1,146 | ||||||
Personal Care | 216 | 218 | ||||||
Total for reportable segments | 1,301 | 1,364 | ||||||
Intersegment sales |
(14) |
|
(16) |
|
||||
Consolidated sales | 1,287 | 1,348 | ||||||
Depreciation and amortization and impairment |
||||||||
Pulp and Paper | 73 | 74 | ||||||
Personal Care | 16 | 16 | ||||||
Total for reportable segments | 89 | 90 | ||||||
Impairment of property, plant |
21 | 19 | ||||||
Consolidated depreciation and amortization |
110 | 109 | ||||||
Operating income (loss) | ||||||||
Pulp and Paper | 19 | 75 | ||||||
Personal Care | 14 | 10 | ||||||
Corporate |
(15) |
|
(14) |
|
||||
Consolidated operating income | 18 | 71 | ||||||
Interest expense, net | 17 | 26 | ||||||
Earnings before income taxes | 1 | 45 | ||||||
Income tax (benefit) expense |
(3) |
|
9 | |||||
Net earnings | 4 | 36 | ||||||
Per common share (in dollars) | ||||||||
Net earnings | ||||||||
Basic | 0.06 | 0.56 | ||||||
Diluted | 0.06 | 0.56 | ||||||
Weighted average number of common |
||||||||
Basic | 62.7 | 63.8 | ||||||
Diluted | 62.8 | 63.9 | ||||||
Cash flows provided from operating activities | 97 | 127 | ||||||
Additions to property, plant and equipment | 100 | 70 |
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)
Three months | Three months | ||||||
ended | ended | ||||||
March 31, | March 31, | ||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
$ | $ | ||||||
Sales | 1,287 | 1,348 | |||||
Operating expenses | |||||||
Cost of sales, excluding depreciation and amortization | 1,050 | 1,062 | |||||
Depreciation and amortization | 89 | 90 | |||||
Selling, general and administrative | 103 | 100 | |||||
Impairment of property, plant and | 21 | 19 | |||||
equipment | |||||||
Closure and restructuring costs | 2 | 1 | |||||
Other operating loss, net | 4 | 5 | |||||
1,269 | 1,277 | ||||||
Operating income | 18 | 71 | |||||
Interest expense, net | 17 | 26 | |||||
Earnings before income taxes | 1 | 45 | |||||
Income tax (benefit) expense |
(3) |
|
9 | ||||
Net earnings | 4 | 36 | |||||
Per common share (in dollars) | |||||||
Net earnings | |||||||
Basic | 0.06 | 0.56 | |||||
Diluted | 0.06 | 0.56 | |||||
Weighted average number of common | |||||||
shares outstanding (millions) | |||||||
Basic | 62.7 | 63.8 | |||||
Diluted | 62.8 | 63.9 |
Consolidated Balance Sheets at
(In millions of dollars)
March 31, | December 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 97 | 126 | ||||||
Receivables, less allowances of $7 and $6 | 642 | 627 | ||||||
Inventories | 779 | 766 | ||||||
Prepaid expenses | 32 | 21 | ||||||
Income and other taxes receivable | 21 | 14 | ||||||
Total current assets | 1,571 | 1,554 | ||||||
Property, plant and equipment, net | 2,868 | 2,835 | ||||||
Goodwill | 551 | 539 | ||||||
Intangible assets, net | 614 | 601 | ||||||
Other assets | 154 | 125 | ||||||
Total assets | 5,758 | 5,654 | ||||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Bank indebtedness | 6 | — | ||||||
Trade and other payables | 709 | 720 | ||||||
Income and other taxes payable | 21 | 27 | ||||||
Long-term debt due within one year | 41 | 41 | ||||||
Total current liabilities | 777 | 788 | ||||||
Long-term debt | 1,211 | 1,210 | ||||||
Deferred income taxes and other | 677 | 654 | ||||||
Other liabilities and deferred credits | 357 | 350 | ||||||
Shareholders’ equity | ||||||||
Common stock | 1 | 1 | ||||||
Additional paid-in capital | 1,957 | 1,966 | ||||||
Retained earnings | 1,165 | 1,186 | ||||||
Accumulated other comprehensive loss | (387 | ) | (501 | ) | ||||
Total shareholders’ equity | 2,736 | 2,652 | ||||||
Total liabilities and shareholders’ equity | 5,758 | 5,654 |
Consolidated Statements of Cash Flows
(In millions of dollars)
For the three months ended | ||||||||
March 31, |
March 31, |
|||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Operating activities | ||||||||
Net earnings | 4 | 36 | ||||||
Adjustments to reconcile net earnings to cash flows from operating activities | ||||||||
Depreciation and amortization | 89 | 90 | ||||||
Deferred income taxes and tax uncertainties | (3 | ) | (15 | ) | ||||
Impairment of property, plant and equipment | 21 | 19 | ||||||
Net gains on disposals of property, plant and equipment | — | (1 | ) | |||||
Stock-based compensation expense | 1 | 2 | ||||||
Other | — | (1 | ) | |||||
Changes in assets and liabilities | ||||||||
Receivables | (5 | ) | (44 | ) | ||||
Inventories | (1 | ) | (12 | ) | ||||
Prepaid expenses | (1 | ) | 2 | |||||
Trade and other payables | 1 | (10 | ) | |||||
Income and other taxes | (9 | ) | 55 | |||||
Difference between employer pension and other post-retirement | (1 | ) | 2 | |||||
contributions and pension and other post-retirement expense | ||||||||
Other assets and other liabilities | 1 | 4 | ||||||
Cash flows provided from operating activities | 97 | 127 | ||||||
Investing activities | ||||||||
Additions to property, plant and equipment | (100 | ) | (70 | ) | ||||
Proceeds from disposals of property, plant and equipment | — | 1 | ||||||
Cash flows used for investing activities | (100 | ) | (69 | ) | ||||
Financing activities | ||||||||
Dividend payments | (25 | ) | (24 | ) | ||||
Stock repurchase | (10 | ) | (13 | ) | ||||
Net change in bank indebtedness | 7 | (4 | ) | |||||
Proceeds from receivables securitization facility | 20 | — | ||||||
Repayments of receivables securitization facility | (20 | ) | — | |||||
Repayments of long-term debt | (1 | ) | (1 | ) | ||||
Other | — | 1 | ||||||
Cash flows used for financing activities | (29 | ) | (41 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (32 | ) | 17 | |||||
Impact of foreign exchange on cash | 3 | (8 | ) | |||||
Cash and cash equivalents at beginning of period | 126 | 174 | ||||||
Cash and cash equivalents at end of period | 97 | 183 | ||||||
Supplemental cash flow information | ||||||||
Net cash payments for: | ||||||||
Interest | 20 | 27 | ||||||
Income taxes paid (refund), net | 6 | (23 | ) |
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”) financial metrics identified in bold as “Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization”. Management believes that the financial metrics presented are frequently used by investors and are useful to evaluate our ability to service debt and our overall credit profile. Management believes these metrics are also useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
The Company calculates “Earnings before items” and “EBITDA before items” by excluding the after-tax (pre-tax) effect of items considered by management as not reflecting our current operations. Management uses these measures, as well as EBITDA and Free cash flow, to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods.
2016 | 2015 | |||||||||||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||
Reconciliation of “Earnings before items” to Net | ||||||||||||||||||||||||||||
earnings | ||||||||||||||||||||||||||||
Net earnings | ($) | 4 | 36 | 38 | 11 | 57 | 142 | |||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | 16 | 12 | 11 | 12 | 12 | 47 | ||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | 2 | 1 | 1 | 1 | 1 | 4 | ||||||||||||||||||||
(-) |
Net gains on disposals of property, plant and |
($) | — | (1 | ) | (11 | ) | — | — | (12 | ) | |||||||||||||||||
equipment | ||||||||||||||||||||||||||||
(+) | Debt refinancing costs | ($) | — |
— |
|
— | 30 | — | 30 | |||||||||||||||||||
(=) | Earnings before items | ($) | 22 | 48 | 39 | 54 | 70 | 211 | ||||||||||||||||||||
(/) | Weighted avg. number of common shares outstanding (diluted) | (millions) | 62.8 | 63.9 | 63.7 | 63 | 62.9 | 63.4 | ||||||||||||||||||||
(=) | Earnings before items per diluted share | ($) | 0.35 | 0.75 | 0.61 | 0.86 | 1.11 | 3.33 | ||||||||||||||||||||
Reconciliation of “EBITDA” and “EBITDA before | ||||||||||||||||||||||||||||
items” to Net earnings | ||||||||||||||||||||||||||||
Net earnings | ($) | 4 | 36 | 38 | 11 | 57 | 142 | |||||||||||||||||||||
(+) | Income tax (benefit) expense | ($) | (3 | ) | 9 | (1 | ) | (14 | ) | 20 | 14 | |||||||||||||||||
(+) | Interest expense, net | ($) | 17 | 26 | 25 | 64 | 17 | 132 | ||||||||||||||||||||
(=) | Operating income | ($) | 18 | 71 | 62 | 61 | 94 | 288 | ||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 89 | 90 | 91 | 89 | 89 | 359 | ||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | 21 | 19 | 18 | 20 | 20 | 77 | ||||||||||||||||||||
(-) |
Net gains on disposals of property, plant |
($) | — | (1 | ) | (14 | ) | — | — | (15 | ) | |||||||||||||||||
and equipment | ||||||||||||||||||||||||||||
(=) | EBITDA | ($) | 128 | 179 | 157 | 170 | 203 | 709 | ||||||||||||||||||||
(/) | Sales | ($) | 1,287 | 1,348 | 1,310 | 1,292 | 1,314 | 5,264 | ||||||||||||||||||||
(=) | EBITDA margin | (%) | 10 | % | 13 | % | 12 | % | 13 | % | 15 | % | 13 | % | ||||||||||||||
EBITDA | ($) | 128 | 179 | 157 | 170 | 203 | 709 | |||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | 2 | 1 | 1 | 1 | 1 | 4 | ||||||||||||||||||||
(=) | EBITDA before items | ($) | 130 | 180 | 158 | 171 | 204 | 713 | ||||||||||||||||||||
(/) | Sales | ($) | 1,287 | 1,348 | 1,310 | 1,292 | 1,314 | 5,264 | ||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 10 | % | 13 | % | 12 | % | 13 | % | 16 | % | 14 | % | ||||||||||||||
Reconciliation of “Free cash flow” to Cash flows | ||||||||||||||||||||||||||||
provided from operating activities | ||||||||||||||||||||||||||||
Cash flows provided from operating activities | ($) | 97 | 127 | 122 | 67 | 137 | 453 | |||||||||||||||||||||
(-) | Additions to property, plant and equipment | ($) | (100 | ) | (70 | ) | (66 | ) | (66 | ) | (87 | ) | (289 | ) | ||||||||||||||
(=) | Free cash flow | ($) | (3 | ) | 57 | 56 | 1 | 50 | 164 | |||||||||||||||||||
“Net debt-to-total capitalization” computation | ||||||||||||||||||||||||||||
Bank indebtedness | ($) | 6 | 6 | 1 | 1 | — | ||||||||||||||||||||||
(+) | Long-term debt due within one year | ($) | 41 | 169 | 169 | 42 | 41 | |||||||||||||||||||||
(+) | Long-term debt | ($) | 1,211 | 1,170 | 1,169 | 1,236 | 1,210 | |||||||||||||||||||||
(=) | Debt | ($) | 1,258 | 1,345 | 1,339 | 1,279 | 1,251 | |||||||||||||||||||||
(-) | Cash and cash equivalents | ($) | (97 | ) | (183 | ) | (207 | ) | (128 | ) | (126 | ) | ||||||||||||||||
(=) | Net debt | ($) | 1,161 | 1,162 | 1,132 | 1,151 | 1,125 | |||||||||||||||||||||
(+) | Shareholders’ equity | ($) | 2,736 | 2,710 | 2,761 | 2,659 | 2,652 | |||||||||||||||||||||
(=) | Total capitalization | ($) | 3,897 | 3,872 | 3,893 | 3,810 | 3,777 | |||||||||||||||||||||
Net debt | ($) | 1,161 | 1,162 | 1,132 | 1,151 | 1,125 | ||||||||||||||||||||||
(/) | Total capitalization | ($) | 3,897 | 3,872 | 3,893 | 3,810 | 3,777 | |||||||||||||||||||||
(=) | Net debt-to-total capitalization | (%) | 30 | % | 30 | % | 29 | % | 30 | % | 30 | % |
“Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings, Operating income or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2016
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”), financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods.
Pulp and Paper | Personal Care | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Q1’16 | Q2’16 | Q3’16 | Q4’16 | YTD | Q1’16 | Q2’16 | Q3’16 | Q4’16 | YTD | Q1’16 | Q2’16 | Q3’16 | Q4’16 | YTD | Q1’16 | Q2’16 | Q3’16 | Q4’16 | YTD | |||||||||||||||||||||||||
Reconciliation of Operating income (loss) |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ($) | 19 | — | — | — | 19 | 14 | — | — | — | 14 |
(15) |
|
— | — | — |
(15) |
|
18 | — | — | — | 18 | |||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | 21 | — | — | — | 21 | — | — | — | — | — | — |
|
— | — | — | — | 21 | — | — | — | 21 | |||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | 2 | — | — | — | 2 | — | — | — | — |
— |
|
— | — | — | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||
(=) | Operating income (loss) before items | ($) | 42 | — | — | — | 42 | 14 | — | — | — | 14 |
(15) |
— | — | — |
(15) |
|
41 | — | — | — | 41 | |||||||||||||||||||||
Reconciliation of “Operating income (loss) |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 42 | — | — | — | 42 | 14 | — | — | — | 14 |
(15) |
|
— | — | — |
(15) |
41 | — | — | — | 41 | ||||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 73 | — | — | — | 73 | 16 | — | — | — | 16 | — | — | — | — | — | 89 | — | — | — | 89 | ||||||||||||||||||||||
(=) | EBITDA before items | ($) | 115 | — | — | — | 115 | 30 | — | — | — | 30 |
(15) |
|
— | — | — |
(15) |
130 | — | — | — | 130 | |||||||||||||||||||||
(/) | Sales | ($) | 1,085 | — | — | — | 1,085 | 216 | — | — | — | 216 | — | — | — | — | — | 1,301 | — | — | — | 1,301 | ||||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 11% | — | — | — | 11% | 14% | — | — | — | 14% | — | — | — | — | — | 10% | — | — | — | 10% |
“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2015
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”), financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods.
Pulp and Paper | Personal Care | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Q1’15 | Q2’15 | Q3’15 | Q4’15 | YTD | Q1’15 | Q2’15 | Q3’15 | Q4’15 | YTD | Q1’15 | Q2’15 | Q3’15 | Q4’15 | YTD | Q1’15 | Q2’15 | Q3’15 | Q4’15 | YTD | |||||||||||||||||||||||||
Reconciliation of Operating income (loss) |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ($) | 75 | 55 | 54 | 86 | 270 | 10 | 17 | 18 | 16 | 61 |
(14) |
(10) |
(11) |
(8) |
(43) |
71 | 62 | 61 | 94 | 288 | |||||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | 19 | 18 | 20 | 20 | 77 | — | — | — | — |
— |
|
— | — | — | — |
— |
|
19 | 18 | 20 | 20 | 77 | ||||||||||||||||||||
(-) |
Net gains on disposals of property, plant and equipment |
($) | — |
|
(14) |
— | — |
(14) |
|
— | — | — | — |
— |
(1) |
|
— | — | — |
(1) |
(1) |
(14) |
|
— | — |
(15) |
||||||||||||||||||
(+) | Closure and restructuring costs | ($) | — | 1 | 1 | 1 | 3 | 1 | — | — | — | 1 | — | — | — | — | — | 1 | 1 | 1 | 1 | 4 | ||||||||||||||||||||||
(=) | Operating income (loss) before items | ($) | 94 | 60 | 75 | 107 | 336 | 11 | 17 | 18 | 16 | 62 |
(15) |
(10) |
(11) |
(8) |
(44) |
90 | 67 | 82 | 115 | 354 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
Reconciliation of “Operating income (loss) |
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 94 | 60 | 75 | 107 | 336 | 11 | 17 | 18 | 16 | 62 |
(15) |
(10) |
(11) |
(8) |
(44) |
90 | 67 | 82 | 115 | 354 | |||||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 74 | 75 | 75 | 73 | 297 | 16 | 16 | 14 | 16 | 62 | — | — | — | — | — | 90 | 91 | 89 | 89 | 359 | ||||||||||||||||||||||
(=) | EBITDA before items | ($) | 168 | 135 | 150 | 180 | 633 | 27 | 33 | 32 | 32 | 124 |
(15) |
(10) |
(11) |
(8) |
(44) |
180 | 158 | 171 | 204 | 713 | ||||||||||||||||||||||
(/) | Sales | ($) | 1,146 | 1,110 | 1,092 | 1,110 | 4,458 | 218 | 216 | 214 | 221 | 869 | — | — | — | — | — | 1,364 | 1,326 | 1,306 | 1,331 | 5,327 | ||||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 15% | 12% | 14% | 16% | 14% | 12% | 15% | 15% | 14% | 14% | — | — | — | — | — | 13% | 12% | 13% | 15% | 13% |
“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)
2016 | 2015 | |||||||||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||
Pulp and Paper | ||||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||||
Sales | ($) | 1,085 | 1,146 | 1,110 | 1,092 | 1,110 | 4,458 | |||||||||||||||||||
Operating income | ($) | 19 | 75 | 55 | 54 | 86 | 270 | |||||||||||||||||||
Depreciation and |
($) | 73 | 74 | 75 | 75 | 73 | 297 | |||||||||||||||||||
Impairment of property, |
($) | 21 | 19 | 18 | 20 | 20 | 77 | |||||||||||||||||||
Paper | ||||||||||||||||||||||||||
Paper Production | (‘000 ST) | 785 | 808 | 806 | 794 | 837 | 3,245 | |||||||||||||||||||
Paper Shipments – |
(‘000 ST) | 786 | 804 | 783 | 779 | 797 | 3,163 | |||||||||||||||||||
Communication |
(‘000 ST) | 657 | 669 | 653 | 648 | 669 | 2,639 | |||||||||||||||||||
Specialty and |
(‘000 ST) | 129 | 135 | 130 | 131 | 128 | 524 | |||||||||||||||||||
Paper Shipments – |
(‘000 ST) | 32 | 35 | 29 | 35 | 28 | 127 | |||||||||||||||||||
Paper Shipments – |
(‘000 ST) | 818 | 839 | 812 | 814 | 825 | 3,290 | |||||||||||||||||||
Pulp | ||||||||||||||||||||||||||
Pulp Shipments(a) | (‘000 ADMT) | 369 | 350 | 345 | 333 | 386 | 1,414 | |||||||||||||||||||
Hardwood Kraft |
(%) | 6 | % | 9 | % | 8 | % | 8 | % | 8 | % | 8 | % | |||||||||||||
Softwood Kraft |
(%) | 69 | % | 65 | % | 65 | % | 65 | % | 69 | % | 66 | % | |||||||||||||
Fluff Pulp | (%) | 25 | % | 26 | % | 27 | % | 27 | % | 23 | % | 26 | % | |||||||||||||
Personal Care | ||||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||||
Sales | ($) | 216 | 218 | 216 | 214 | 221 | 869 | |||||||||||||||||||
Operating income | ($) | 14 | 10 | 17 | 18 | 16 | 61 | |||||||||||||||||||
Depreciation and |
($) | 16 | 16 | 16 | 14 | 16 | 62 | |||||||||||||||||||
|
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Average Exchange |
$US / $CAN | 1.375 | 1.241 | 1.229 | 1.309 | 1.335 | 1.279 | |||||||||||||||||||
|
||||||||||||||||||||||||||
$CAN / $US | 0.727 | 0.806 | 0.813 | 0.765 | 0.749 | 0.782 | ||||||||||||||||||||
€ / $US | 1.103 | 1.126 | 1.106 | 1.112 | 1.095 | 1.11 |
(a) Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.
Note: the term “ST” refers to a short ton and the term “ADMT” refers to an air dry metric ton.
1 Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005813/en/
Source:
Domtar
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