Seasonally high level of scheduled maintenance; Good momentum in pulp markets
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).
- First quarter 2017 net earnings of
$0.32 per share - Price increases announced for several pulp grades
- $91 million of cash flow from operating activities
Excluding items listed below, the Company had earnings before items1 of
First quarter 2017 items:
- None.
Fourth quarter 2016 items:
- Closure and restructuring impact of
$(1) million ($(1) million after tax); and - Negative impact of purchase accounting of $1 million ($1 million after tax).
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).
QUARTERLY REVIEW
“The Ashdown mill continued to focus its efforts on the production and quality of fluff pulp; we shipped primarily softwood bales in the quarter, but we are making good progress with the qualification of our grades and we’re receiving positive feedback from our customers,” said
Mr. Williams added, “In Personal Care, strong sales growth and operational improvements in the first quarter continue to offset currency, price and cost headwinds. We are focusing our efforts on rolling out our growth plans, capturing the benefits of our cost savings program and building value for our customers to effectively compete in this competitive environment. Our sales pipeline remains active with numerous opportunities to grow in both
Operating income was $42 million in the first quarter of 2017 compared to an operating income of $74 million in the fourth quarter of 2016. Depreciation and amortization totaled $80 million in the first quarter of 2017.
Operating income before items1 was $42 million in the first quarter of 2017 compared to an operating income before items1 of $74 million in the fourth quarter of 2016.
(In millions of dollars) | 1Q 2017 | 4Q 2016 | ||||||
Sales | $ | 1,304 | $ | 1,274 | ||||
Operating income (loss) | ||||||||
Pulp and Paper segment | 34 | 74 | ||||||
Personal Care segment | 16 | 13 | ||||||
Corporate | (8 | ) | (13 | ) | ||||
Total operating income | 42 | 74 | ||||||
Operating income before items1 | 42 | 74 | ||||||
Depreciation and amortization | 80 | 85 |
The decrease in operating income in the first quarter of 2017 was the result of higher maintenance costs, lower productivity, lower average selling prices and higher raw material and other costs. These factors were partially offset by higher volume, lower selling, general and administrative expenses and favorable exchange rates.
When compared to the fourth quarter of 2016, manufactured paper shipments were up 1% and pulp shipments increased 9%. The shipments-to-production ratio for paper was 105% in the first quarter of 2017, compared to 104% in the fourth quarter of 2016. Paper inventories decreased by 36,000 tons and pulp inventories decreased by 61,000 metric tons when compared to the fourth quarter of 2016.
LIQUIDITY AND CAPITAL
Cash flow from operating activities amounted to $91 million and capital expenditures were $34 million, resulting in free cash flow1 of $57 million for the first quarter of 2017. Domtar’s net debt-to-total capitalization ratio1 stood at 30% at March 31, 2017 and at December 31, 2016.
OUTLOOK
For the remainder of the year, we anticipate paper shipments to be in-line with market demand. We expect to benefit from recently announced pulp price increases, while mix should continue to improve as we convert to more fluff pulp sales at our Ashdown mill. Costs, including freight, labor and chemicals are expected to marginally increase. In Personal Care, market growth, investments in advertising and promotion in addition to new customer wins should drive higher sales, while raw material costs are expected to marginally increase.
EARNINGS CONFERENCE CALL
The Company will hold a conference call today at
The Company will release its second quarter 2017 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 2016 as filed with the
Highlights
(In millions of dollars, unless otherwise noted)
Three months ended | Three months ended | |||||||
March 31, | March 31, | |||||||
2017 | 2016 | |||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Selected Segment Information | ||||||||
Sales | ||||||||
Pulp and Paper | 1,073 | 1,085 | ||||||
Personal Care | 249 | 216 | ||||||
Total for reportable segments | 1,322 | 1,301 | ||||||
Intersegment sales | (18 | ) | (14 | ) | ||||
Consolidated sales | 1,304 | 1,287 | ||||||
Depreciation and amortization
of property, plant and equipment |
||||||||
Pulp and Paper | 64 | 73 | ||||||
Personal Care | 16 | 16 | ||||||
Total for reportable segments | 80 | 89 | ||||||
Impairment of property, plant
and equipment – Pulp and Paper |
— | 21 | ||||||
Consolidated depreciation and amortization and
impairment of property, plant and equipment |
80 | 110 | ||||||
Operating income (loss) | ||||||||
Pulp and Paper | 34 | 19 | ||||||
Personal Care | 16 | 14 | ||||||
Corporate | (8 | ) | (15 | ) | ||||
Consolidated operating income | 42 | 18 | ||||||
Interest expense, net | 17 | 17 | ||||||
Earnings before income taxes | 25 | 1 | ||||||
Income tax expense (benefit) | 5 | (3 | ) | |||||
Net earnings | 20 | 4 | ||||||
Per common share (in dollars) | ||||||||
Net earnings | ||||||||
Basic | 0.32 | 0.06 | ||||||
Diluted | 0.32 | 0.06 | ||||||
Weighted average number of common
shares outstanding (millions) |
||||||||
Basic | 62.6 | 62.7 | ||||||
Diluted | 62.8 | 62.8 | ||||||
Cash flows from operating activities | 91 | 97 | ||||||
Additions to property, plant and equipment | 34 | 100 |
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)
Three months ended | Three months ended | |||||||
March 31, | March 31, | |||||||
2017 | 2016 | |||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Sales | 1,304 | 1,287 | ||||||
Operating expenses | ||||||||
Cost of sales, excluding depreciation and amortization | 1,075 | 1,050 | ||||||
Depreciation and amortization | 80 | 89 | ||||||
Selling, general and administrative | 108 | 103 | ||||||
Impairment of property, plant and equipment | — | 21 | ||||||
Closure and restructuring costs | — | 2 | ||||||
Other operating (income) loss, net | (1 | ) | 4 | |||||
1,262 | 1,269 | |||||||
Operating income | 42 | 18 | ||||||
Interest expense, net | 17 | 17 | ||||||
Earnings before income taxes | 25 | 1 | ||||||
Income tax expense (benefit) | 5 | (3 | ) | |||||
Net earnings | 20 | 4 | ||||||
Per common share (in dollars) | ||||||||
Net earnings | ||||||||
Basic | 0.32 | 0.06 | ||||||
Diluted | 0.32 | 0.06 | ||||||
Weighted average number of common
shares outstanding (millions) |
||||||||
Basic | 62.6 | 62.7 | ||||||
Diluted | 62.8 | 62.8 |
Consolidated Balance Sheets at
(In millions of dollars)
March 31, | December 31, | |||||||
2017 | 2016 | |||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 111 | 125 | ||||||
Receivables, less allowances of $7 and $7 | 662 | 613 | ||||||
Inventories | 722 | 759 | ||||||
Prepaid expenses | 34 | 40 | ||||||
Income and other taxes receivable | 15 | 31 | ||||||
Total current assets | 1,544 | 1,568 | ||||||
Property, plant and equipment, net | 2,789 | 2,825 | ||||||
Goodwill | 553 | 550 | ||||||
Intangible assets, net | 607 | 608 | ||||||
Other assets | 132 | 129 | ||||||
Total assets | 5,625 | 5,680 | ||||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Bank indebtedness | 2 | 12 | ||||||
Trade and other payables | 633 | 656 | ||||||
Income and other taxes payable | 25 | 22 | ||||||
Long-term debt due within one year | 64 | 63 | ||||||
Total current liabilities | 724 | 753 | ||||||
Long-term debt | 1,188 | 1,218 | ||||||
Deferred income taxes and other | 672 | 675 | ||||||
Other liabilities and deferred credits | 356 | 358 | ||||||
Shareholders’ equity | ||||||||
Common stock | 1 | 1 | ||||||
Additional paid-in capital | 1,964 | 1,963 | ||||||
Retained earnings | 1,205 | 1,211 | ||||||
Accumulated other comprehensive loss | (485 | ) | (499 | ) | ||||
Total shareholders’ equity | 2,685 | 2,676 | ||||||
Total liabilities and shareholders’ equity | 5,625 | 5,680 |
Consolidated Statements of Cash Flows
(In millions of dollars)
For the three months ended | ||||||||
March 31, 2017 | March 31, 2016 | |||||||
(Unaudited) | ||||||||
$ | $ | |||||||
Operating activities | ||||||||
Net earnings | 20 | 4 | ||||||
Adjustments to reconcile net earnings to cash flows from operating activities | ||||||||
Depreciation and amortization | 80 | 89 | ||||||
Deferred income taxes and tax uncertainties | (4 | ) | (3 | ) | ||||
Impairment of property, plant and equipment | — | 21 | ||||||
Stock-based compensation expense | 1 | 1 | ||||||
Changes in assets and liabilities | ||||||||
Receivables | (47 | ) | (6 | ) | ||||
Inventories | 39 | (1 | ) | |||||
Prepaid expenses | 1 | (1 | ) | |||||
Trade and other payables | (19 | ) | 2 | |||||
Income and other taxes | 21 | (9 | ) | |||||
Difference between employer pension and other post-retirement
contributions and pension and other post-retirement expense |
— | (1 | ) | |||||
Other assets and other liabilities | (1 | ) | 1 | |||||
Cash flows from operating activities | 91 | 97 | ||||||
Investing activities | ||||||||
Additions to property, plant and equipment | (34 | ) | (100 | ) | ||||
Cash flows used for investing activities | (34 | ) | (100 | ) | ||||
Financing activities | ||||||||
Dividend payments | (26 | ) | (25 | ) | ||||
Stock repurchase | — | (10 | ) | |||||
Net change in bank indebtedness | (11 | ) | 7 | |||||
Change in revolving credit facility |
(20 | ) | — | |||||
Proceeds from receivables securitization facility | — | 20 | ||||||
Repayments of receivables securitization facility | (15 | ) | (20 | ) | ||||
Repayments of long-term debt | — | (1 | ) | |||||
Cash flows used for financing activities | (72 | ) | (29 | ) | ||||
Net decrease in cash and cash equivalents | (15 | ) | (32 | ) | ||||
Impact of foreign exchange on cash | 1 | 3 | ||||||
Cash and cash equivalents at beginning of period | 125 | 126 | ||||||
Cash and cash equivalents at end of period | 111 | 97 | ||||||
Supplemental cash flow information | ||||||||
Net cash payments (refunds) for: | ||||||||
Interest | 19 | 20 | ||||||
Income taxes | (8 | ) | 6 |
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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates “Earnings before items” and “EBITDA before items” by excluding the after-tax (pre-tax) effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
2017 | 2016 | |||||||||||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||||
Reconciliation of “Earnings before items” to Net earnings | ||||||||||||||||||||||||||||
Net earnings | ($) | 20 | 4 | 18 | 59 | 47 | 128 | |||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | — | 16 | 2 | 4 | — | 22 | ||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | — | 2 | 16 | 8 | (1 | ) | 25 | |||||||||||||||||||
(+) | Litigation settlement | ($) | — | — | 2 | — | — | 2 | ||||||||||||||||||||
(+) | Impact of purchase accounting | ($) | — | — | — | — | 1 | 1 | ||||||||||||||||||||
(=) | Earnings before items | ($) | 20 | 22 | 38 | 71 | 47 | 178 | ||||||||||||||||||||
(/) | Weighted avg. number of common shares outstanding (diluted) | (millions) | 62.8 | 62.8 | 62.7 | 62.7 | 62.7 | 62.7 | ||||||||||||||||||||
(=) | Earnings before items per diluted share | ($) | 0.32 | 0.35 | 0.61 | 1.13 | 0.75 | 2.84 | ||||||||||||||||||||
Reconciliation of “EBITDA” and “EBITDA before items” to Net earnings | ||||||||||||||||||||||||||||
Net earnings | ($) | 20 | 4 | 18 | 59 | 47 | 128 | |||||||||||||||||||||
(+) | Income tax expense (benefit) | ($) | 5 | (3 | ) | 6 | 16 | 10 | 29 | |||||||||||||||||||
(+) | Interest expense, net | ($) | 17 | 17 | 15 | 17 | 17 | 66 | ||||||||||||||||||||
(=) | Operating income | ($) | 42 | 18 | 39 | 92 | 74 | 223 | ||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 80 | 89 | 87 | 87 | 85 | 348 | ||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | — | 21 | 3 | 5 | — | 29 | ||||||||||||||||||||
(=) | EBITDA | ($) | 122 | 128 | 129 | 184 | 159 | 600 | ||||||||||||||||||||
(/) | Sales | ($) | 1,304 | 1,287 | 1,267 | 1,270 | 1,274 | 5,098 | ||||||||||||||||||||
(=) | EBITDA margin | (%) | 9 | % | 10 | % | 10 | % | 14 | % | 12 | % | 12 | % | ||||||||||||||
EBITDA | ($) | 122 | 128 | 129 | 184 | 159 | 600 | |||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | — | 2 | 21 | 10 | (1 | ) | 32 | |||||||||||||||||||
(+) | Litigation settlement | ($) | — | — | 2 | — | — | 2 | ||||||||||||||||||||
(+) | Impact of purchase accounting | ($) | — | — | — | — | 1 | 1 | ||||||||||||||||||||
(=) | EBITDA before items | ($) | 122 | 130 | 152 | 194 | 159 | 635 | ||||||||||||||||||||
(/) | Sales | ($) | 1,304 | 1,287 | 1,267 | 1,270 | 1,274 | 5,098 | ||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 9 | % | 10 | % | 12 | % | 15 | % | 12 | % | 12 | % | ||||||||||||||
Reconciliation of “Free cash flow” to Cash flows from operating activities | ||||||||||||||||||||||||||||
Cash flows from operating activities | ($) | 91 | 97 | 118 | 95 | 155 | 465 | |||||||||||||||||||||
(-) | Additions to property, plant and equipment | ($) | (34 | ) | (100 | ) | (119 | ) | (83 | ) | (45 | ) | (347 | ) | ||||||||||||||
(=) | Free cash flow | ($) | 57 | (3 | ) | (1 | ) | 12 | 110 | 118 | ||||||||||||||||||
“Net debt-to-total capitalization” computation | ||||||||||||||||||||||||||||
Bank indebtedness | ($) | 2 | 6 | 1 | — | 12 | ||||||||||||||||||||||
(+) | Long-term debt due within one year | ($) | 64 | 41 | 64 | 63 | 63 | |||||||||||||||||||||
(+) | Long-term debt | ($) | 1,188 | 1,211 | 1,237 | 1,309 | 1,218 | |||||||||||||||||||||
(=) | Debt | ($) | 1,254 | 1,258 | 1,302 | 1,372 | 1,293 | |||||||||||||||||||||
(-) | Cash and cash equivalents | ($) | (111 | ) | (97 | ) | (111 | ) | (168 | ) | (125 | ) | ||||||||||||||||
(=) | Net debt | ($) | 1,143 | 1,161 | 1,191 | 1,204 | 1,168 | |||||||||||||||||||||
(+) | Shareholders’ equity | ($) | 2,685 | 2,736 | 2,716 | 2,754 | 2,676 | |||||||||||||||||||||
(=) | Total capitalization | ($) | 3,828 | 3,897 | 3,907 | 3,958 | 3,844 | |||||||||||||||||||||
Net debt | ($) | 1,143 | 1,161 | 1,191 | 1,204 | 1,168 | ||||||||||||||||||||||
(/) | Total capitalization | ($) | 3,828 | 3,897 | 3,907 | 3,958 | 3,844 | |||||||||||||||||||||
(=) | Net debt-to-total capitalization | (%) | 30 | % | 30 | % | 30 | % | 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 2017
(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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
Pulp and Paper | Personal Care | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Q1’17 | Q2’17 | Q3’17 | Q4’17 | YTD | Q1’17 | Q2’17 | Q3’17 | Q4’17 | YTD | Q1’17 | Q2’17 | Q3’17 | Q4’17 | YTD | Q1’17 | Q2’17 | Q3’17 | Q4’17 | YTD | |||||||||||||||||||||||||
Reconciliation of Operating income (loss)
to “Operating income (loss) before items” |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ($) | 34 | — | — | — | 34 | 16 | — | — | — | 16 | (8) | — | — | — |
(8) |
42 |
— | — | — | 42 | |||||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
(+) | Impact of purchase accounting | ($) | — | — | — | — | — | — | — | — | — | — |
— |
|
— |
— | — |
— |
— | — | — | — | — | |||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
(+) | Litigation settlement | ($) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
(=) | Operating income (loss) before items | ($) | 34 | — | — | — | 34 | 16 | — | — | — | 16 |
(8) |
— |
— | — |
(8) |
42 |
— | — | — | 42 | ||||||||||||||||||||||
Reconciliation of “Operating income (loss)
before items” to “EBITDA before items” |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 34 | — | — | — | 34 | 16 | — | — | — | 16 | (8) | — | — | — | (8) | 42 | — | — | — | 42 | |||||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 64 | — | — | — | 64 | 16 | — | — | — | 16 | — | — | — | — | — | 80 | — | — | — | 80 | ||||||||||||||||||||||
(=) | EBITDA before items | ($) | 98 | — | — | — | 98 | 32 | — | — | — | 32 | (8) | — | — | — | (8) | 122 | — | — | — | 122 | ||||||||||||||||||||||
(/) | Sales | ($) | 1,073 | — | — | — | 1,073 | 249 | — | — | — | 249 | — | — | — | — | — | 1,322 | — | — | — | 1,322 | ||||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 9% | — | — | — | 9% | 13% | — | — | — | 13% | — | — | — | — | — | 9% | — | — | — | 9% |
“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 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 are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
Pulp and Paper | Personal Care (1) | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Q1’16 | Q2’16 | Q3’16 | Q4’16 | Year | Q1’16 | Q2’16 | Q3’16 | Q4’16 | Year | Q1’16 | Q2’16 | Q3’16 | Q4’16 | Year | Q1’16 | Q2’16 | Q3’16 | Q4’16 | Year | |||||||||||||||||||||||||
Reconciliation of Operating income (loss)
to “Operating income (loss) before items” |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ($) | 19 | 35 | 89 | 74 | 217 | 14 | 15 | 15 | 13 | 57 | (15) | (11) | (12) | (13) | (51) | 18 | 39 | 92 | 74 | 223 | |||||||||||||||||||||||
(+) | Impairment of property, plant and equipment | ($) | 21 | 3 | 5 | — | 29 | — | — | — | — | — | — | — | — | — | — | 21 | 3 | 5 | — | 29 | ||||||||||||||||||||||
(+) | Impact of purchase accounting | ($) | — | — | — | — | — | — | — | — | 1 | 1 | — | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||
(+) | Closure and restructuring costs | ($) | 2 | 21 | 10 | (2) | 31 | — | — | — | 1 | 1 | — | — | — | — | — | 2 | 21 | 10 | (1) | 32 | ||||||||||||||||||||||
(+) | Litigation settlement | ($) | — | — | — | — | — | — | — | — | — | — | — | 2 | — | — | 2 | — | 2 | — | — | 2 | ||||||||||||||||||||||
(=) | Operating income (loss) before items | ($) | 42 | 59 | 104 | 72 | 277 | 14 | 15 | 15 | 15 | 59 | (15) | (9) | (12) | (13) | (49) | 41 | 65 | 107 | 74 | 287 | ||||||||||||||||||||||
Reconciliation of “Operating income (loss)
before items” to “EBITDA before items” |
||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 42 | 59 | 104 | 72 | 277 | 14 | 15 | 15 | 15 | 59 | (15) | (9) | (12) | (13) | (49) | 41 | 65 | 107 | 74 | 287 | |||||||||||||||||||||||
(+) | Depreciation and amortization | ($) | 73 | 72 | 71 | 68 | 284 | 16 | 15 | 16 | 17 | 64 | — | — | — | — | — | 89 | 87 | 87 | 85 | 348 | ||||||||||||||||||||||
(=) | EBITDA before items | ($) | 115 | 131 | 175 | 140 | 561 | 30 | 30 | 31 | 32 | 123 | (15) | (9) | (12) | (13) | (49) | 130 | 152 | 194 | 159 | 635 | ||||||||||||||||||||||
(/) | Sales | ($) | 1,085 | 1,054 | 1,054 | 1,046 | 4,239 | 216 | 228 | 231 | 242 | 917 | — | — | — | — | — | 1,301 | 1,282 | 1,285 | 1,288 | 5,156 | ||||||||||||||||||||||
(=) | EBITDA margin before items | (%) | 11% | 12% | 17% | 13% | 13% | 14% | 13% | 13% | 13% | 13% | — | — | — | — | — | 10% | 12% | 15% | 12% | 12% |
“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.
(1) On
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)
2017 | 2016 | |||||||||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||
Pulp and Paper Segment | ||||||||||||||||||||||||||
Sales | ($) | 1,073 | 1,085 | 1,054 | 1,054 | 1,046 | 4,239 | |||||||||||||||||||
Operating income | ($) | 34 | 19 | 35 | 89 | 74 | 217 | |||||||||||||||||||
Depreciation and amortization | ($) | 64 | 73 | 72 | 71 | 68 | 284 | |||||||||||||||||||
Impairment of property, plant and equipment | ($) | — | 21 | 3 | 5 | — | 29 | |||||||||||||||||||
Paper | ||||||||||||||||||||||||||
Paper Production | (‘000 ST) | 709 | 785 | 715 | 726 | 714 | 2,940 | |||||||||||||||||||
Paper Shipments – Manufactured | (‘000 ST) | 745 | 786 | 752 | 744 | 739 | 3,021 | |||||||||||||||||||
Communication Papers | (‘000 ST) | 622 | 657 | 627 | 620 | 618 | 2,522 | |||||||||||||||||||
Specialty and Packaging | (‘000 ST) | 123 | 129 | 125 | 124 | 121 | 499 | |||||||||||||||||||
Paper Shipments – Sourced from 3rd parties | (‘000 ST) | 29 | 32 | 29 | 35 | 27 | 123 | |||||||||||||||||||
Paper Shipments – Total | (‘000 ST) | 774 | 818 | 781 | 779 | 766 | 3,144 | |||||||||||||||||||
Pulp | ||||||||||||||||||||||||||
Pulp Shipments(a) | (‘000 ADMT) | 453 | 369 | 360 | 369 | 415 | 1,513 | |||||||||||||||||||
Hardwood Kraft Pulp | (%) | 4 | % | 6 | % | 4 | % | 5 | % | 8 | % | 6 | % | |||||||||||||
Softwood Kraft Pulp | (%) | 71 | % | 69 | % | 66 | % | 67 | % | 67 | % | 67 | % | |||||||||||||
Fluff Pulp | (%) | 25 | % | 25 | % | 30 | % | 28 | % | 25 | % | 27 | % | |||||||||||||
Personal Care Segment | ||||||||||||||||||||||||||
Sales | ($) | 249 | 216 | 228 | 231 | 242 | 917 | |||||||||||||||||||
Operating income | ($) | 16 | 14 | 15 | 15 | 13 | 57 | |||||||||||||||||||
Depreciation and amortization | ($) | 16 | 16 | 15 | 16 | 17 | 64 | |||||||||||||||||||
Average Exchange Rates | $US / $CAN | 1.323 | 1.375 | 1.289 | 1.305 | 1.333 | 1.325 | |||||||||||||||||||
$CAN / $US | 0.756 | 0.727 | 0.776 | 0.766 | 0.750 | 0.755 | ||||||||||||||||||||
€ / $US | 1.066 | 1.103 | 1.130 | 1.116 | 1.078 | 1.107 |
(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/20170427005783/en/
Source:
Domtar Corporation
INVESTOR RELATIONS
Nicholas Estrela, 514-848-5555 x 85979
Director
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or
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David Struhs, 803-802-8031
Vice-President
Corporate Services and Sustainability