KINGSEY FALLS, QC, Aug. 9, 2012 /CNW Telbec/ - Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue paper products, announces its financial results for the three-month period ended June 30, 2012.
Q2-2012 Financial Highlights
- Sales of $944 million
(compared to $891 million in Q1-2012 (+6%) and $991 million in Q2-2011 (-5%))
- Excluding specific items
- EBITDA of $84 million
(compared to $72 million in Q1-2012 (+17%) and $62 million in Q2-2011 (+35%))
- Net earnings per share of $0.08
(compared to net earnings of $0.04 in Q1-2012 and a net loss of $0.09 in Q2-2011) - Including specific items
- EBITDA of $77 million
(compared to $75 million in Q1-2012 (+3%) and $68 million in Q2-2011 (+13%))
- Net earnings per share of $0.08
(compared to $0.06 in Q1-2012 and $1.27 in Q2-2011) - Net debt of $1,585 million (compared to $1,524 million as at March 31, 2012), including $134 million of non-recourse debt
Strategic Initiatives
- Consolidation of our corrugated products sector in Ontario with the integration of the operations of Bird Packaging Limited and concurrent investments totalling $30 million in Vaughan, Etobicoke, St. Marys and Belleville
- Agreement allowing for the continuation of operations at the Trenton containerboard mill
- Important equipment upgrades to be undertaken this summer at Cascades' mill in La Rochette and Reno de Medici's mill in Villa Santa Lucia in Europe
- Greenpac project machine installation proceeding as planned with expected start-up in July 2013
Mr. Alain Lemaire, President and Chief Executive Officer, had the following comments on the second quarter results and near-term outlook:
"As a result of higher volumes, lower energy costs and a weaker Canadian dollar, our profitability improved again sequentially during the second quarter of 2012. Most importantly, these results highlight that our strategy focused on our two core sectors, Tissue Papers and Packaging, is working to our advantage in a soft economic environment. Our Tissue Papers Group posted good results and our Specialty Products Group performed according to expectations. These two sectors accounted for most of the gain. As well, we are working to resolve operational issues in our Containerboard manufacturing operations to bring them back to expected productivity levels. This will be particularly important as the state of the containerboard market is finally allowing for more favorable conditions for producers. In Europe, the economic situation had a negative impact on the demand for our products in the first semester but order flows and backlogs indicate a return to more acceptable levels.
Hence, we are confident despite the economic environment in North America which continues to be uncertain. White grades recycled paper prices have increased recently but current availability leads us to believe that prices will be stable in the short term. As for brown grades, supply is good and prices have recently decreased which is positive. Usual seasonality associated with the third quarter, the impact of our recent strategic initiatives and expected improvements in our productivity rate should contribute to improved financial performance. The European economic environment remains challenging and we continue to focus on the project we started a few years ago to equip ourselves with a more competitive operational platform. Irrespective of the economic environment, we are committed to continue to improve our financial and operational performance."
Financial Summary
| Selected consolidated information | ||||
| (in millions of Canadian dollars, except amounts per share) (unaudited) | Q2/2012 | Q2/2011 | Q1/2012 | |
| Sales | 944 | 991 | 891 | |
| Excluding specific items 1 | ||||
| Operating income before depreciation and amortization (OIBD or EBITDA) | 84 | 62 | 72 | |
| Operating income | 37 | 15 | 26 | |
| Net earnings (loss) | 7 | (9) | 4 | |
| per common share | $0.08 | $(0.09) | $0.04 | |
| Cash flow from continuing operations (adjusted) | 40 | 17 | 48 | |
| As reported | ||||
| Operating income before depreciation and amortization (OIBD or EBITDA) | 77 | 68 | 75 | |
| Operating income | 29 | 21 | 29 | |
| Net earnings | 7 | 122 | 6 | |
| per common share | $0.08 | $1.27 | $0.06 | |
| Cash flow from continuing operations (adjusted) | 37 | 16 | 48 | |
| Note 1 - see the supplemental information on non-IFRS measures. | ||||
Results analysis for the three-month period ended June 30, 2012 (compared to the previous year)
In comparison with the same period last year, sales decreased by 5% to $944 million as of result of lower volumes, lower average selling prices and the net impact of business divestitures and closures over acquisitions that more than offset a more favourable exchange rate.
The above-mentioned factors combined with lower raw material costs resulted in operating income, excluding specific items, amounting to $37 million compared to $15 million in Q2-2011. On a segmented basis, our three sectors in North America surpassed 2011 second quarter's results due to lower recycled fiber costs, a more favourable exchange rate and the contribution from acquisitions. Our Boxboard sector in Europe suffered from lower volumes and an unfavourable exchange rate that more than offset lower raw material prices. When including specific items, the operating income amounted to $29 million in comparison to $21 million for the same period of last year.
In the second quarter of 2012, these specific items impacted our operating income and/or net earnings (before tax):
- a $2 million unrealized loss on financial instruments (impact on operating income and net earnings);
- a $5 million loss resulting from impairment charges and restructuring costs (operating income and net earnings);
- a $1 million expense related to accelerated depreciation of assets due to restructuring measures (operating income and net earnings);
- a $5 million foreign exchange gain on long-term debt and financial instruments (net earnings);
- a $2 million gain included in our share of associates and joint ventures (net earnings).
For further details, see the following tables on IFRS and non-IFRS measures reconciliation included herewith.
Net earnings excluding specific items amounted to $7 million ($0.08 per share) in the second quarter of 2012 compared to a net loss of $9 million ($0.09 per share) for the same period of last year. Including specific items, net earnings amounted to $7 million ($0.08 per share) compared to $122 million ($1.27 per share) for the same quarter in 2011, period at which a gain related to the divestiture of Dopaco was recorded.
Results analysis for the three-month period ended June 30, 2012 (compared to the previous quarter)
In comparison to the previous quarter, sales increased by 6% mostly due the impact of higher volumes. Acquisitions and a favourable foreign exchange rate also contributed to counterbalance the impact of lower selling prices due to a less favourable product mix. Excluding specific items, operating income increased by $11 million to reach $37 million while net earnings improved by 75% reaching $7 million primarily due to volume growth that more than offset an increase in raw material prices.
Net earnings excluding specific items for the quarter were also reduced by a higher tax rate in Europe and by a lower contribution of earnings from our associates and joint ventures representing approximately $4 million.
Net debt increased by $61 million to $1,585 million due to an unfavorable exchange rate and as a result of capital investments including the acquisition of Bird Packaging and the completion of the funding of our investment in the Greenpac project.
Dividend on common shares and normal course issuer bid
The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid September 13, 2012 to shareholders of record at the close of business on August 31, 2012. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada).
In the second quarter of 2012, Cascades purchased for cancellation 61,900 shares at an average price of $4.35 representing an aggregate amount of approximately $0.3 million.
Supplemental information on non-IFRS measures
Operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations are not measures of performance under IFRS. The Corporation includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations because they are measures used by management to assess the operating and financial performance of the Corporation's operating segments. Additionally, the Corporation believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations do not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with IFRS, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with IFRS excluding the change in working capital components.
Operating income before depreciation and amortization excluding specific items, earnings before interests, taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items, net earnings per common share excluding specific items and cash flow from operations excluding specific items are non-IFRS measures. The Corporation believes that it is useful for investors to be aware of specific items that have adversely or positively affected its IFRS measures, and that the above mentioned non-IFRS measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Corporation's measures excluding specific items have no standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.
Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, accelerated depreciation of assets due to restructuring measures, debt restructuring charges, gains or losses on sale of business unit, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature.
Net earnings (loss), which is a performance measure defined by IFRS is reconciled below to operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interests, taxes, depreciation and amortization excluding specific items:
| (in millions of Canadian dollars) (unaudited) | Q2/2012 | Q2/2011 | Q1/2012 |
| Net earnings | 7 | 122 | 6 |
| Net loss (earnings) from discontinued operations for the period | - | (109) | 2 |
| Net loss attributable to non-controlling interest | (1) | - | (1) |
| Share of earnings of associates and joint ventures | (2) | (2) | (2) |
| Provision for (recovery of) income taxes | 5 | (21) | 1 |
| Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 5 | (2) |
| Financing expense | 25 | 26 | 25 |
| Operating income | 29 | 21 | 29 |
| Specific items : | |||
| Inventory adjustment resulting from business acquisition | - | 6 | - |
| Gain on disposals and others | - | (11) | (1) |
| Impairment charges | 1 | - | - |
| Restructuring costs | 4 | 1 | - |
| Unrealized loss (gain) on financial instruments | 2 | (2) | (2) |
| Accelerated depreciation and amortization due to restructuring measures | 1 | - | - |
| 8 | (6) | (3) | |
| Operating income - excluding specific items | 37 | 15 | 26 |
| Depreciation and amortization, excluding specific items | 47 | 47 | 46 |
| Operating income before depreciation and amortization (OIBD or EBITDA) - excluding specific items |
84 | 62 | 72 |
The following table reconciles net earnings (loss) and net earnings (loss) per share to net earnings (loss) excluding specific items and net earnings (loss) per share excluding specific items:
| (in millions of Canadian dollars, except amounts per share) (unaudited) | Net earnings (loss) | Net earnings (loss) per share 1 | |||||
| Q2/2012 | Q2/2011 | Q1/2012 | Q2/2012 | Q2/2011 | Q1/2012 | ||
| As per IFRS | 7 | 122 | 6 | $0.08 | $1.27 | $0.06 | |
| Specific items : | |||||||
| Inventory adjustment resulting from business acquisition | - | 6 | - | $ - | $0.04 | $ - | |
| Gain on disposals and others | - | (11) | (1) | $ - | $(0.16) | $(0.01) | |
| Impairment charges | 1 | - | - | $0.01 | $ - | $ - | |
| Restructuring costs | 4 | 1 | - | $0.03 | $0.01 | $ - | |
| Unrealized loss (gain) on financial instruments | 2 | (2) | (2) | $0.01 | $(0.02) | $(0.01) | |
| Accelerated depreciation and amortization due to restructuring measures | 1 | - | - | $0.01 | $ - | $ - | |
| Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 5 | (2) | $(0.05) | $0.05 | $(0.02) | |
| Share of earnings of associates, joint ventures and non-controlling interest | (2) | (2) | - | $(0.01) | $(0.02) | $ - | |
| Included in discontinued operations, net of tax | - | (108) | 2 | $ - | $(1.14) | $0.02 | |
| Tax effect on specific items and other tax adjustments | (1) | (20) | 1 | $ - | $(0.12) | $ - | |
| - | (131) | (2) | $ - | $(1.36) | $(0.02) | ||
| Excluding specific items | 7 | (9) | 4 | $0.08 | $(0.09) | $0.04 | |
| Note 1 - specific amounts per share are calculated on an after-tax basis. Per share amounts of line item "Tax effect on specific items and other adjustments" only include the effect of tax adjustments. |
|||||||
The following table reconciles cash flow provided by (used from) operating activities to cash flow (adjusted) from operations excluding specific items:
| (in millions of Canadian dollars) (unaudited) | Q2/2012 | Q2/2011 | Q1/2012 |
| Cash flow provided by (used from) operating activities | 33 | (27) | 24 |
| Changes in non-cash working capital components | 4 | 43 | 24 |
| Cash flow (adjusted) from operations | 37 | 16 | 48 |
| Specific items, net of current income tax | |||
| Restructuring costs | 3 | 1 | - |
| Excluding specific items | 40 | 17 | 48 |
Consolidated Balance Sheets
| (in millions of Canadian dollars) (unaudited) | June 30, 2012 |
December 31, 2011 |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 29 | 12 |
| Accounts receivable | 593 | 535 |
| Current income tax assets | 23 | 24 |
| Inventories | 513 | 516 |
| Financial assets | 25 | 6 |
| Assets held for sale | 11 | 12 |
| 1,194 | 1,105 | |
| Long-term assets | ||
| Investments in associates and joint ventures | 240 | 219 |
| Property, plant and equipment | 1,676 | 1,703 |
| Intangible assets | 192 | 185 |
| Financial assets | 14 | 25 |
| Other assets | 59 | 44 |
| Deferred income tax assets | 122 | 119 |
| Goodwill and others | 337 | 328 |
| 3,834 | 3,728 | |
| Liabilities and Equity | ||
| Current liabilities | ||
| Bank loans and advances | 90 | 90 |
| Trade and other payables | 550 | 539 |
| Current income tax liabilities | 2 | 2 |
| Current portion of provisions for contingencies and charges | 4 | 5 |
| Current portion of financial liabilities and other liabilities | 82 | 20 |
| Current portion of long-term debt | 63 | 49 |
| 791 | 705 | |
| Long-term liabilities | ||
| Long-term debt | 1,461 | 1,358 |
| Provisions for contingencies and charges | 34 | 33 |
| Financial liabilities | 46 | 111 |
| Other liabilities | 264 | 249 |
| Deferred income tax liabilities | 94 | 107 |
| 2,690 | 2,563 | |
| Equity attributable to Shareholders | ||
| Capital stock | 483 | 486 |
| Contributed surplus | 15 | 14 |
| Retained earnings | 603 | 615 |
| Accumulated other comprehensive loss | (90) | (86) |
| 1,011 | 1,029 | |
| Non-controlling interest | 133 | 136 |
| Total equity | 1,144 | 1,165 |
| 3,834 | 3,728 |
| CONSOLIDATED STATEMENT OF EARNINGS | ||||||
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
|||||
| (in millions of Canadian dollars, except per share amounts and number of shares) (unaudited) | 2012 | 2011 | 2012 | 2011 | ||
| Sales | 944 | 991 | 1,835 | 1,765 | ||
| Cost of sales and expenses | ||||||
| Cost of sales (including depreciation and amortization of $48 million for the 3-month period (2011- $47 million) and $94 million for the 6-month period (2011-$83 million)) |
810 | 883 | 1,580 | 1,580 | ||
| Selling and administrative expenses | 100 | 98 | 194 | 175 | ||
| Gain on disposals and others | - | (11) | (1) | (10) | ||
| Impairment charges and restructuring costs | 5 | 1 | 5 | 5 | ||
| Foreign exchange loss (gain) | (1) | 1 | - | 1 | ||
| Loss (gain) on derivative financial instruments | 1 | (2) | (1) | (1) | ||
| 915 | 970 | 1,777 | 1,750 | |||
| Operating income | 29 | 21 | 58 | 15 | ||
| Financing expense | 25 | 26 | 50 | 51 | ||
| Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 5 | (7) | 10 | ||
| Share of earnings of associates and joint ventures | (2) | (2) | (4) | (10) | ||
| Profit (loss) before income taxes | 11 | (8) | 19 | (36) | ||
| Provision for (recovery of) income taxes | 5 | (21) | 6 | (35) | ||
| Net earnings (loss) from continuing operations including non-controlling interest for the period | 6 | 13 | 13 | (1) | ||
| Net earnings (loss) from discontinued operations for the period | - | 109 | (2) | 115 | ||
| Net earnings including non-controlling interest for the period | 6 | 122 | 11 | 114 | ||
| Net loss attributable to non-controlling interest | (1) | - | (2) | - | ||
| Net earnings attributable to Shareholders for the period | 7 | 122 | 13 | 114 | ||
| Net earnings (loss) from continuing operations per common share | ||||||
| Basic | $0.08 | $0.13 | $0.16 | $(0.01) | ||
| Diluted | $0.08 | $0.13 | $0.16 | $(0.01) | ||
| Net earnings per common share | ||||||
| Basic | $0.08 | $1.27 | $0.14 | $1.19 | ||
| Diluted | $0.08 | $1.26 | $0.14 | $1.18 | ||
| Weighted average basic number of common shares outstanding | 94,119,195 | 96,367,221 | 94,308,480 | 96,486,160 | ||
| Net earnings (loss) attributable to Shareholders: | ||||||
| Continuing operations | 7 | 13 | 15 | (1) | ||
| Discontinued operations | - | 109 | (2) | 115 | ||
| Net earnings | 7 | 122 | 13 | 114 | ||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
|||||
| (in millions of Canadian dollars) (unaudited) | 2012 | 2011 | 2012 | 2011 | ||
| Net earnings including non-controlling interest for the period | 6 | 122 | 11 | 114 | ||
| Other comprehensive income (loss) | ||||||
| Translation adjustments | ||||||
| Change in foreign currency translation of foreign subsidiaries | - | (15) | (5) | (24) | ||
| Change in foreign currency translation related to net investment hedging activities | (9) | 4 | (1) | 19 | ||
| Income taxes | 1 | (1) | - | (3) | ||
| Cash flow hedges | ||||||
| Change in fair value of foreign exchange forward contracts | (2) | 5 | 3 | 4 | ||
| Change in fair value of interest rate swaps | (7) | (2) | (4) | (1) | ||
| Change in fair value of commodity derivative financial instruments | 3 | (9) | 1 | (5) | ||
| Income taxes | 3 | - | - | (1) | ||
| Actuarial loss on post-employment benefit obligations | (11) | - | (25) | - | ||
| Income taxes | 3 | - | 7 | - | ||
| Available-for-sale financial assets | 1 | - | - | - | ||
| Other comprehensive loss | (18) | (18) | (24) | (11) | ||
| Comprehensive income (loss) including non-controlling interest for the period | (12) | 104 | (13) | 103 | ||
| Comprehensive income (loss) attributable to non-controlling interest for the period | (1) | - | (2) | - | ||
| Comprehensive income (loss) attributable to Shareholders for the period | (11) | 104 | (11) | 103 | ||
| Comprehensive income (loss) attributable to Shareholders: | ||||||
| Continuing operations | (11) | (5) | (9) | (12) | ||
| Discontinued operations | - | 109 | (2) | 115 | ||
| Comprehensive income (loss) | (11) | 104 | (11) | 103 | ||
CONSOLIDATED STATEMENTS OF EQUITY
| For the 6-month period ended June 30, 2012 | ||||||||
| (in millions of Canadian dollars) (unaudited) | Capital stock | Contributed surplus |
Retained earnings |
Accumulated other comprehensive loss |
Total equity attributable to Shareholders |
Non-controlling interest |
Total equity | |
| Balance—Beginning of period | 486 | 14 | 615 | (86) | 1,029 | 136 | 1,165 | |
| Comprehensive income (loss) | ||||||||
| Net earnings (loss) | - | - | 13 | - | 13 | (2) | 11 | |
| Other comprehensive loss | - | - | (18) | (4) | (22) | (2) | (24) | |
| - | - | (5) | (4) | (9) | (4) | (13) | ||
| Dividends | - | - | (8) | - | (8) | - | (8) | |
| Redemption of common shares | (3) | 1 | - | - | (2) | - | (2) | |
| Partial disposal of subsidiary to non-controlling interest | - | - | - | - | - | 3 | 3 | |
| Acquisition of non-controlling interest | - | - | 1 | - | 1 | (2) | (1) | |
| Balance—End of period | 483 | 15 | 603 | (90) | 1,011 | 133 | 1,144 | |
| For the 6-month period ended June 30, 2011 | ||||||||
| (in millions of Canadian dollars) (unaudited) | Capital stock | Contributed surplus |
Retained earnings |
Accumulated other comprehensive loss |
Total equity attributable to Shareholders |
Non-controlling interest |
Total equity | |
| Balance—Beginning of period | 496 | 14 | 576 | (37) | 1,049 | 23 | 1,072 | |
| Comprehensive income (loss) | ||||||||
| Net earnings | - | - | 114 | - | 114 | - | 114 | |
| Business acquisition | - | - | - | - | - | 129 | 129 | |
| Other comprehensive loss | - | - | - | (11) | (11) | - | (11) | |
| - | - | 114 | (11) | 103 | 129 | 232 | ||
| Dividends | - | - | (8) | - | (8) | - | (8) | |
| Redemption of common shares | (3) | (1) | - | - | (4) | - | (4) | |
| Balance—End of period | 493 | 13 | 682 | (48) | 1,140 | 152 | 1,292 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
||||
| (in millions of Canadian dollars) (unaudited) | 2012 | 2011 | 2012 | 2011 | |
| Operating activities from continuing operations | |||||
| Net earnings attributable to Shareholders for the period | 7 | 122 | 13 | 114 | |
| Net loss (earnings) from discontinued operations for the period | - | (109) | 2 | (115) | |
| Net earnings (loss) from continuing operations | 7 | 13 | 15 | (1) | |
| Adjustments for | |||||
| Financing expense | 25 | 26 | 50 | 51 | |
| Depreciation and amortization | 48 | 47 | 94 | 83 | |
| Gain on disposals and others | - | (11) | (1) | (10) | |
| Impairment charges and restructuring costs | 2 | - | 2 | 4 | |
| Loss (gain) on derivative financial instruments | 2 | (2) | - | - | |
| Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 5 | (7) | 10 | |
| Provision for (recovery of) income taxes | 5 | (21) | 6 | (35) | |
| Share of earnings of associates and joint ventures | (2) | (2) | (4) | (10) | |
| Net loss attributable to non-controlling interest | (1) | - | (2) | - | |
| Net financing expense paid | (35) | (34) | (50) | (51) | |
| Income taxes paid | (6) | (6) | (10) | (9) | |
| Others | (3) | 1 | (8) | (1) | |
| 37 | 16 | 85 | 31 | ||
| Changes in non-cash working capital components | (4) | (43) | (28) | (70) | |
| 33 | (27) | 57 | (39) | ||
| Investing activities from continuing operations | |||||
| Investments in associates and joint ventures | - | - | (19) | (2) | |
| Purchase of property, plant and equipment | (33) | (24) | (81) | (59) | |
| Proceeds on disposal of property, plant and equipment | 5 | 2 | 10 | 2 | |
| Change in other assets | (23) | (23) | (27) | (31) | |
| Cash reserved for business acquisition | 14 | - | - | - | |
| Business acquisitions, net of cash acquired | (14) | (1) | (14) | (1) | |
| Proceeds on disposals of business, net of cash disposed | - | 6 | - | 6 | |
| (51) | (40) | (131) | (85) | ||
| Financing activities from continuing operations | |||||
| Bank loans and advances | (7) | 19 | (1) | 23 | |
| Change in revolving credit facilities | 61 | (308) | 142 | (257) | |
| Purchase of senior notes | - | - | (3) | - | |
| Payments of other long-term debt | (15) | (7) | (38) | (9) | |
| Increase in other long-term debt | 1 | 1 | 1 | 1 | |
| Redemption of common shares | - | (3) | (2) | (4) | |
| Partial disposal of a subsidiary to non-controlling interest | 3 | - | 3 | - | |
| Acquisition of non-controlling interest | (1) | - | (1) | - | |
| Dividends paid to the Corporation's Shareholders | (4) | (4) | (8) | (8) | |
| 38 | (302) | 93 | (254) | ||
| Change in cash and cash equivalents during the period from continuing operations | 20 | (369) | 19 | (378) | |
| Change in cash and cash equivalents from discontinued operations, including proceeds on disposal during the period |
(2) | 377 | (2) | 390 | |
| Net change in cash and cash equivalents during the period | 18 | 8 | 17 | 12 | |
| Cash and cash equivalents—Beginning of period | 11 | 10 | 12 | 6 | |
| Cash and cash equivalents—End of period | 29 | 18 | 29 | 18 | |
SEGMENTED INFORMATION
In 2012, the Corporation changed the structure of its internal organization in a manner that caused the composition of its reportable segment to change. As a result, starting in 2012, the Corporation modified its segmented information disclosure and restated prior periods. Containerboard and Boxboard North America manufacturing and converting activities are now presented within one segment. Boxboard European activities are reported as a separate segment.
The Corporation's operations are managed in four segments: Containerboard, Boxboard Europe, Specialty Products (which constitute the Packaging Products of the Corporation) and Tissue Papers.
| in millions of Canadian dollars) (unaudited) | SALES | ||||
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
||||
| 2012 | 2011 | 2012 | 2011 | ||
| Packaging Products | |||||
| Containerboard | 300 | 333 | 584 | 677 | |
| Boxboard Europe | 208 | 256 | 412 | 318 | |
| Specialty Products | 209 | 219 | 411 | 421 | |
| Intersegment sales | (19) | (28) | (37) | (55) | |
| 698 | 780 | 1,370 | 1,361 | ||
| Tissue Papers | 255 | 218 | 484 | 417 | |
| Intersegment sales and others | (9) | (7) | (19) | (13) | |
| Total | 944 | 991 | 1,835 | 1,765 | |
| (in millions of Canadian dollars) (unaudited) | Operating income (loss) before depreciation and amortization | ||||
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
||||
| 2012 | 2011 | 2012 | 2011 | ||
| Packaging Products | |||||
| Containerboard | 17 | 22 | 41 | 35 | |
| Boxboard Europe | 9 | 23 | 22 | 27 | |
| Specialty Products | 15 | 10 | 26 | 17 | |
| 41 | 55 | 89 | 79 | ||
| Tissue Papers | 38 | 16 | 71 | 26 | |
| Corporate | (2) | (3) | (8) | (7) | |
| Operating income before depreciation and amortization | 77 | 68 | 152 | 98 | |
| Depreciation and amortization | (48) | (47) | (94) | (83) | |
| Financing expense | (25) | (26) | (50) | (51) | |
| Foreign exchange (loss) gain on long-term debt and financial instruments | 5 | (5) | 7 | (10) | |
| Share of earnings of associates and joint ventures | 2 | 2 | 4 | 10 | |
| Profit (loss) before income taxes | 11 | (8) | 19 | (36) | |
| Segmented Information (continued) | |||||
| (in millions of Canadian dollars) (unaudited) | Purchase of property, plant and equipment | ||||
| For the 3-month periods ended June 30, |
For the 6-month periods ended June 30, |
||||
| 2012 | 2011 | 2012 | 2011 | ||
| Packaging Products | |||||
| Containerboard | 17 | 11 | 31 | 19 | |
| Boxboard Europe | 5 | 11 | 10 | 12 | |
| Specialty Products | 4 | 3 | 7 | 9 | |
| 26 | 25 | 48 | 40 | ||
| Tissue Papers | 4 | 9 | 12 | 15 | |
| Corporate | 2 | - | 5 | 2 | |
| Total purchases | 32 | 34 | 65 | 57 | |
| Proceeds on disposal of property, plant and equipment | (5) | (3) | (10) | (3) | |
| 27 | 31 | 55 | 54 | ||
| Purchase of property, plant and equipment included in trade and other payables | |||||
| Beginning of period | 10 | 6 | 25 | 18 | |
| End of period | (9) | (15) | (9) | (15) | |
| Purchase of property, plant and equipment net of proceeds on disposal | 28 | 22 | 71 | 57 | |
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Corporation employs more than 12,000 employees, who work in more than 100 units located in North America and Europe. With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades continues to serve its clients with innovative products. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Corporation's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Corporation's Securities and Exchange Commission filings.
SOURCE: CASCADES INC.
Media:
Hubert Bolduc
Vice-President, Communications and Public Affairs
514 912-3790
Source:
Allan Hogg
Vice-President and Chief Financial Officer
Investors:
Riko Gaudreault
Director, Investor relations
514 282-2697
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