KINGSEY FALLS, QC, Feb. 26 /CNW Telbec/ - Cascades Inc. (CAS on the Toronto stock exchange), a leader in recovery and the manufacturing of green packaging and tissue paper products, announces its unaudited financial results for the three months and the fiscal year ended December 31, 2009.
(All amounts in this press release are in Canadian dollars unless otherwise indicated.)
Fiscal year highlights
----------------------
- Net earnings excluding specific items of $1.13 per share ($110 million)
compared to net earnings of $0.04 per share ($4 million) in 2008. Net
earnings including specific items of $0.60 per share ($61 million)
compared to a net loss of $0.55 per share ($54 million) in 2008;
- Operating income before depreciation and amortization (EBITDA)
excluding specific items up 152% to $465 million, the highest annual
EBITDA in the Company's history;
- Cash flow from operations (adjusted) of $305 million ($3.12 per share)
and positive free cash flow of $149 million in 2009 compared to
negative free cash flow of $79 million in 2008;
- Net debt down $268 million compared to December 31, 2008.
Fourth quarter highlights
-------------------------
- Net earnings excluding specific items of $0.27 per share ($26 million)
compared to net earnings of $0.18 per share ($18 million) in the same
period of last year. Net loss including specific items of $0.42 per
share ($41 million) compared to a net loss of $0.19 per share
($18 million) in Q4 2008;
- Operating income before depreciation and amortization (EBITDA)
excluding specific items of $110 million, up 15% in comparison to the
fourth of 2008;
- Offerings of senior notes at an average yield of 8% due 2016, 2017,
2020 for a total of approximately $1 billion to refinance senior notes
maturing in 2013.
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Financial Summary
-----------------
Selected consolidated
information (unaudited)
(in millions of
Canadian dollars,
except amounts ------------------- ----------------------------
per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009
------------------------------------------- ----------------------------
Note 2 Note 2
Sales 3,877 4,017 952 1,020 974
Excluding specific
items(1)
Operating income
before depreciation
and amortization
(OIBD or EBITDA) 465 306 110 96 127
Operating income from
continuing operations 247 93 54 41 74
Net earnings 110 4 26 18 35
per common share $1.13 $0.04 $0.27 $0.18 $0.36
Cash flow from
operations (adjusted)
from continuing
operations 327 183 77 68 95
per common share $3.35 $1.85 $0.80 $0.69 $0.97
As reported
Operating income before
depreciation and
amortization (OIBD or
EBITDA)(1) 432 229 70 52 129
Operating income (loss)
from continuing operations 214 16 14 (3) 76
Net earnings (loss) 60 (54) (41) (18) 34
per common share $0.61 $(0.55) $(0.42) $(0.19) $0.35
Cash flow from
operations (adjusted)
from continuing
operations(1) 305 155 62 59 94
per common share(1) $3.12 $1.57 $0.64 $0.60 $0.96
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Note 1 - see the supplemental information on non-GAAP measures note.
Note 2 - the 2008 results were restated following the retrospective
application of CICA handbook Section 3064
Commenting on the annual results, Mr. Alain Lemaire, President and Chief Executive Officer stated: "2009 was an outstanding year for Cascades. Despite a challenging economic environment which led to a drop in our total shipments and an erosion of our selling prices, our results continuously improved and we posted the highest annual EBITDA in the Company's history. The depreciation of the Canadian dollar and lower variable costs in the first half of the year partly explain those results, along with the turnaround of our boxboard assets, the rapid growth in demand for our green products and improved cost control.
Moreover, I am pleased with the sizeable reduction in working capital. Combined with our strong cash flow from operations, this provided us with the necessary free cash flow to pay down debt and complete strategic acquisitions. Not only do we have less debt compared to last year, we also significantly lowered our financial risk profile as we refinanced our long-term debt at favourable interest rates. All in all, Cascades is now well positioned to pursue its development and is committed to maintaining a healthy balance sheet."
Results analysis for the three-month period ended December 31, 2009
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In comparison with the same period last year, sales decreased by 7% to $952 million reflecting a significant drop of most of our selling prices and the appreciation of the Canadian dollar partly offset by a 4.5% increase in shipments.
Net earnings excluding specific items amounted to $26 million ($0.27 per share) in the fourth quarter of 2009 compared to $18 million ($0.18 per share) for the same period of last year. Including specific items, the net loss increased to $41 million ($0.42 per share) compared to $18 million ($0.19 per share) for the same quarter in 2008.
Operating results improved despite lower sales. In fact, the operating income from continuing operations excluding specific items increased to $54 million compared to $41 million in Q4 2008 due mainly to lower energy costs, improved results form our recovery and boxboard operations as well as better control of our costs. When including specific items, despite a more significant impairment loss in Q4 2009, operating income from continuing operations increased by $17 million to $14 million.
Specific items that have impacted Q4 2009 operating income are as follows:
- $42 million impairment loss ($37 million related to our Fjordcell pulp
mill);
- $4 million unrealized gain on financial instruments;
- $2 million in closure and restructuring costs.
In addition to these previous items (total loss of $40 million), the Q4 2009 net loss was also impacted by these specific items (before tax):
- $37 million foreign exchange loss on long-term debt and financial
instruments ($33 million related to our long-term debt refinancing);
- $17 million loss on long-term debt refinancing;
- $3 million gain included in the share of results of significantly
influenced companies;
- $2 million gain from the adjustment of statutory tax rate.
See the two following tables for more details on GAAP and non-GAAP measures reconciliation.
Results analysis for the fiscal year ended December 31, 2009
------------------------------------------------------------
In comparison to last year, sales decreased by 3% to $3.9 billion reflecting a drop of most of our selling prices as well as a 7.5% decline of shipments which more than offset the positive impact of a lower Canadian dollar on average in 2009.
The operating income from continuing operations excluding specific items increased to $247 million compared to $93 million last year mainly as a result of lower raw material and energy costs, the turnaround of our boxboard and other non-performing assets, the depreciation of the Canadian dollar as well as improved cost efficiency. When including specific items, operating income from continuing operations increased by $198 million to $214 million.
For the fiscal year ended December 31, 2009, net earnings excluding specific items amounted to $110 million ($1.13 per share) compared to net earnings of $4 million ($0.04 per share) last year. Including specific items, net earnings reached $60 million ($0.61 per share) compared to a net loss of $54 million ($0.55 per share) in 2008.
Net debt decreased by $268 million compared to December 31st 2009 and the ratio of net debt to EBITDA excluding specific items in the last twelve months decreased from 5.9x in the fourth quarter of 2008 to 3.3x in the fourth quarter of 2009.
Near term outlook
-----------------
Mr. Alain Lemaire, President and Chief Executive Officer added: "Looking ahead to the first quarter of 2010, we expect to benefit from the continuous improvement of demand and from the current implementation of selling price increases in most of our sectors. We however anticipate some short-term pressure on profitability due to the significant rise of recycled fibre costs.
On the financial front, notwithstanding our improved flexibility and ratios in 2009, we will maintain our objective of reducing our working capital in line with sales and a cautious approach with regards to capital investments in 2010 aiming at generating approximately $100 million of free cash flow annually. We will also continue our efforts to divest non-strategic or non-performing assets."
Dividend on common shares and normal course issuer bid
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The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid March 23, 2010 to shareholders of record at the close of business on March 10, 2010. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada). In addition, in the fourth quarter of 2009, in accordance with its normal course issuer bid program, Cascades purchased 138,300 shares at an average price of $7.93. In 2009 Cascades purchased for cancellation 1,340,318 common shares at an average price of $3.04 per share representing an aggregate amount of approximately $4.1 million.
Supplemental information on non-GAAP measures
Operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share are not measures of performance under Canadian GAAP. The Company includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share because they are measures used by management to assess the operating and financial performance of the Company's operating segments. Additionally, the Company 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, cash flow from operations and cash flow from operations per share does not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with Canadian GAAP, 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, cash flow from operations and cash flow from operations per share may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with Canadian GAAP excluding the change in working capital components and cash flow from operations per share is determined by dividing cash flow from operations by the weighted average number of common shares of the period.
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, cash flow from operations excluding specific items and cash flow from operations per share excluding specific items are non-GAAP measures. The Company believes that it is useful for investors to be aware of specific items that have adversely or positively affected its GAAP measures, and that the above mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Company's measures excluding specific 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.
Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, 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 Canadian GAAP 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) 2009 2008 Q4/2009 Q4/2008 Q3/2009
------------------------------------------- ----------------------------
Note 2 Note 2
Net earnings (loss) 60 (54) (41) (18) 34
Net earnings from
discontinued operations - (18) - - -
Non-controlling interest (1) 2 - - -
Share of results of
significantly influenced
companies (17) (8) (7) (2) (3)
Provision for (recovery of)
income taxes 23 (32) (16) (12) 17
Foreign exchange loss
on long-term debt and
financial instruments 45 26 37 6 3
Gain on purchase of
senior notes (14) (2) - (2) -
Loss on long-term debt
refinancing 17 - 17 - -
Interest expense 101 102 24 25 25
------------------- ----------------------------
Operating income 214 16 14 (3) 76
Specific items :
Inventory adjustment
resulting from
business acquisition - 2 - - -
Loss on disposal and
others 1 5 - - -
Impairment loss 46 16 42 13 1
Closure and
restructuring costs 12 27 2 10 5
Unrealized loss (gain)
on financial instruments (26) 27 (4) 21 (8)
------------------- ----------------------------
33 77 40 44 (2)
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Operating income -
excluding specific
items 247 93 54 41 74
Depreciation and
amortization 218 213 56 55 53
------------------- ----------------------------
Operating income before
depreciation and
amortization (OIBD) -
excluding specific
items(1) 465 306 110 96 127
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Note 1 - also refers to earnings before interests, taxes, depreciation
and amortization (EBITDA).
Note 2 - the 2008 results were restated following the retrospective
application of CICA handbook Section 3064
The following table reconciles net earnings and net earnings per share to net earnings excluding specific items and net earnings per share excluding specific items:
(in millions of
Canadian dollars,
except amounts --------------------------------------------------
per share) Net earnings (loss)
------------------------------------------- ----------------------------
2009 2008 Q4/2009 Q4/2008 Q3/2009
-------------------- ----------------------------
Note 2 Note 2
As per GAAP 60 (54) (41) (18) 34
Specific items :
Inventory adjustment
resulting from business
acquisition - 2 - - -
Loss on disposal and
others 1 5 - - -
Impairment loss 46 16 42 13 1
Closure and
restructuring costs 12 27 2 10 5
Unrealized loss (gain)
financial instruments (26) 27 (4) 21 (8)
Loss on long-term debt
refinancing 17 - 17 - -
Gain on purchase of
senior notes (14) (2) - (2) -
Foreign exchange loss
on long-term debt and
financial instruments 45 26 37 6 3
Share of results of
significantly influenced
companies (5) - (3) - -
Gain included in
discontinued operations - (23) - - -
Adjustment of statutory
tax rate (6) - (2) - -
Tax effect on specific
items (20) (20) (22) (12) -
------------------ ----------------------------
50 58 67 36 1
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Excluding specific items 110 4 26 18 35
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(in millions of
Canadian dollars,
except amounts --------------------------------------------------
per share) Net earnings (loss) per share(1)
------------------------------------------- ----------------------------
2009 2008 Q4/2009 Q4/2008 Q3/2009
-------------------- ----------------------------
Note 2 Note 2
As per GAAP $0.61 $(0.55) $(0.42) $(0.19) $0.35
Specific items :
Inventory adjustment
resulting from business
acquisition $ - $0.01 $ - $ - $ -
Loss on disposal and
others $ - $0.05 $ - $ - $ -
Impairment loss $0.35 $0.13 $0.32 $0.11 $0.01
Closure and
restructuring costs $0.09 $0.19 $0.02 $0.07 $0.03
Unrealized loss (gain)
financial instruments $(0.19) $0.19 $(0.03) $0.15 $(0.06)
Loss on long-term debt
refinancing $0.11 $ - $0.11 $ - $ -
Gain on purchase of
senior notes $(0.13) $(0.01) $ - $(0.01) $ -
Foreign exchange loss
on long-term debt and
financial instruments $0.40 $0.22 $0.32 $0.05 $0.03
Share of results of
significantly influenced
companies $(0.05) $ - $(0.03) $ - $ -
Gain included in
discontinued operations $ - $(0.19) $ - $ - $ -
Adjustment of statutory
tax rate $(0.06) $ - $(0.02) $ - $ -
Tax effect on specific
items
------------------ ----------------------------
$0.52 $0.59 $0.69 $0.37 $0.01
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Excluding specific items $1.13 $0.04 $0.27 $0.18 $0.36
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Note 1 - specific amounts per share are calculated on an after-tax basis.
Note 2 - the 2008 results were restated following the retrospective
application of CICA handbook Section 3064
The following table reconciles cash flow from operations and cash flow from operations per share to cash flow from operations excluding specific items and cash flow from operations per share excluding specific items:
--------------------------------------------------
Cash flow from operations
--------------------------------------------------
(in millions of
Canadian dollars,
except amounts
per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009
------------------------------------------- ----------------------------
Cash flow provided by
operating activities 357 124 91 85 117
Changes in non-cash
working capital
components (52) 31 (29) (26) (23)
-------------------- ----------------------------
Cash flow (adjusted)
from operations 305 155 62 59 94
Specific items :
Inventory adjustment
resulting from
business acquisition - 2 - - -
Gains or losses on
disposals and others 1 - - - -
Loss on long-term debt
refinancing 13 - 13 - -
Closure and
restructuring costs,
net of current
income tax 8 26 2 9 1
-------------------- ----------------------------
Excluding specific
items 327 183 77 68 95
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------------------------------------------- ----------------------------
--------------------------------------------------
Cash flow from operations per share
--------------------------------------------------
(in millions of
Canadian dollars,
except amounts
per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009
------------------------------------------- ----------------------------
Cash flow provided by
operating activities
Changes in non-cash
working capital
components
-------------------- ----------------------------
Cash flow (adjusted)
from operations $3.12 $1.57 $0.64 $0.60 $0.96
Specific items :
Inventory adjustment
resulting from
business acquisition - $0.02 - - -
Gains or losses on
disposals and others - - - - -
Loss on long-term debt
refinancing $0.14 - $0.14 - -
Closure and
restructuring costs,
net of current
income tax $0.09 $0.26 $0.02 $0.09 $0.01
-------------------- ----------------------------
Excluding specific
items $3.35 $1.85 $0.80 $0.69 $0.97
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Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 13,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The 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 Company'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 Company's Securities and Exchange Commission filings.
Consolidated Balance Sheets
(in millions of Canadian dollars)
As at December 31, As at December 31,
2009 2008
----------------------------------------
Assets (unaudited)
Current assets
Cash and cash equivalents 19 11
Accounts receivable 543 657
Inventories 520 580
-------------------------------------------------------------------------
1,082 1,248
Property, plant and equipment 1,912 2,030
Intangible assets 165 149
Other assets 317 283
Goodwill 316 321
-------------------------------------------------------------------------
3,792 4,031
----------------------------------------
----------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Bank loans and advances 83 104
Accounts payable and accrued liabilities 505 586
Current portion of long-term debt 10 36
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598 726
Long-term debt 1,459 1,672
Other liabilities 431 377
----------------------------------------
2,488 2,775
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Commitments and Contingencies
Shareholders' Equity
Capital stock 499 506
Retained earnings 700 656
Contributed surplus 14 9
Accumulated other comprehensive income 91 85
----------------------------------------
1,304 1,256
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3,792 4,031
----------------------------------------
----------------------------------------
Consolidated Statements of Earnings (Loss)
(in millions of Canadian dollars, except per share amounts)
(unaudited)
For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
Sales 952 1,020 3,877 4,017
Cost of sales and expenses
Cost of sales (excluding
depreciation and
amortization) 737 821 2,991 3,323
Depreciation and amortization 56 55 218 213
Selling and administrative
expenses 104 102 413 389
Losses on disposal and others - - 1 5
Impairment and other
restructuring costs 44 23 58 43
Loss (gain) on financial
instruments (3) 22 (18) 28
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938 1,023 3,663 4,001
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Operating income (loss)from
continuing operations 14 (3) 214 16
Interest expense 24 25 101 102
Loss on refinancing of long
term debt 17 - 17 -
Gain on purchases of
senior notes - (2) (14) (2)
Foreign exchange loss
on long-term debt and
financial instruments 37 6 45 26
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(64) (32) 65 (110)
Provision for (recovery of)
income taxes (16) (12) 23 (32)
Share of results of
significantly influenced
companies (7) (2) (17) (8)
Non-controlling interest - - (1) 2
-------------------------------------------------------------------------
Net earnings (loss) from
continuing operations (41) (18) 60 (72)
Net earnings from
discontinued operations - - - 18
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Net earnings (loss) for
the period (41) (18) 60 (54)
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-------------------------------------------------------------------------
Net earnings (loss) from
continuing operations per
common share
Basic ($0.42) ($0.19) $0.61 ($0.73)
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-----------------------------------------------
Diluted ($0.42) ($0.19) $0.60 ($0.73)
-----------------------------------------------
-----------------------------------------------
Net earnings (loss) per
common share
Basic ($0.42) ($0.19) $0.61 ($0.55)
-----------------------------------------------
-----------------------------------------------
Diluted ($0.42) ($0.19) $0.60 ($0.55)
-----------------------------------------------
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Weighted average basic
number of common shares
outstanding 97,283,958 98,600,556 97,656,412 98,804,536
-----------------------------------------------
Consolidated Statements of Shareholders' Equity
(in millions of Canadian dollars)
(unaudited)
For the year ended December 31,
2009
--------------------------------------------------
Accumu-
lated
other
Contri- compre- Share-
Capital Retained buted hensive holders'
stock earnings surplus income Equity
--------------------------------------------------
Balance - Beginning
of year 506 656 9 85 1,256
Comprehensive income:
Net earnings for
the year - 60 - - 60
Change in other
comprehensive
income (loss) - - - 6 6
---------
Comprehensive income
for the year 66
---------
Dividends - (16) - - (16)
Adjustment related to
stock options - - 2 - 2
Redemption of common
shares (7) - 3 - (4)
--------------------------------------------------
Balance - End of year 499 700 14 91 1,304
--------------------------------------------------
--------------------------------------------------
For the year ended December 31,
2008
--------------------------------------------------
Accumu-
lated
other
compre-
Contri- hensive Share-
Capital Retained buted income holders'
stock earnings surplus (loss) Equity
--------------------------------------------------
Balance - Beginning
of year 509 727 8 (43) 1,201
Comprehensive income:
Net loss for
the year - (54) - - (54)
Change in other
comprehensive
income - - - 128 128
---------
Comprehensive income
for the year 74
---------
Dividends - (16) - - (16)
Adjustment related to
stock options - - 1 - 1
Redemption of common
shares (3) (1) - - (4)
--------------------------------------------------
Balance - End of year 506 656 9 85 1,256
--------------------------------------------------
--------------------------------------------------
Consolidated Statements of Comprehensive Income (Loss)
(in millions of Canadian dollars)
(unaudited)
For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
Net earnings (loss) for
the period (41) (18) 60 (54)
-----------------------------------------------
Other comprehensive
income (loss)
TRANSLATION ADJUSTMENTS
Change in foreign
currency translation
of self-sustaining
foreign subsidiaries (23) 124 (128) 176
Change in foreign
currency translation
related to hedging
activities 14 17 87 17
Income taxes (2) (3) (12) (3)
CASH FLOW HEDGES
Change in fair value of
foreign exchange
forward contracts
designated as cash
flow hedges 35 (75) 87 (88)
Change in fair value of
interest rate swap
agreements designated
as cash flow hedges - (1) - (1)
Change in fair value
of commodity
derivative financial
instruments designated
as cash flow hedges - (8) (2) 3
Income taxes (10) 24 (26) 24
-----------------------------------------------
14 78 6 128
-----------------------------------------------
Comprehensive income
(loss) for the period (27) 60 66 74
-----------------------------------------------
-----------------------------------------------
Consolidated Statements of Cash Flows
(in millions of Canadian dollars)
(unaudited)
For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
OPERATING ACTIVITIES FROM
CONTINUING OPERATIONS
Net earnings (loss) for
the period (41) (18) 60 (54)
Net earnings from
discontinued operations - - - (18)
-------------------------------------------------------------------------
Net earnings (loss) from
continuing operations (41) (18) 60 (72)
Adjustments for
Depreciation and
amortization 56 55 218 213
Losses on disposal
and others - - 1 5
Impairment and other
restructuring costs 42 13 50 16
Unrealized loss (gain)
on financial instruments (4) 21 (26) 27
Loss on refinancing of
long term debt and
financial instruments 4 - 4 -
Foreign exchange loss on
long-term debt 37 6 45 26
Gain on purchase of
senior notes - (2) (14) (2)
Future income taxes (18) (10) (7) (52)
Share of results of
significantly influenced
companies (7) (2) (17) (8)
Non-controlling interest - - (1) 2
Early settlement of natural
gaz contracts - (2) - 11
Others (7) (2) (8) (11)
-------------------------------------------------------------------------
62 59 305 155
Change in non-cash working
capital components 29 26 52 (31)
-------------------------------------------------------------------------
91 85 357 124
-------------------------------------------------------------------------
INVESTING ACTIVITIES FROM
CONTINUING OPERATIONS
Purchase of property, plant
and equipment (49) (56) (173) (184)
Proceeds from disposal of
property, plant and
equipment - - 2 5
Increase in other assets (8) (6) (17) (4)
Cash of a joint venture
and business acquisitions (5) - (69) 5
-------------------------------------------------------------------------
(62) (62) (257) (178)
-------------------------------------------------------------------------
FINANCING ACTIVITIES FROM
CONTINUING OPERATIONS
Bank loans and advances 4 7 (18) 20
Change in revolving credit
facilities (219) (171) (250) (149)
Issuance of senior notes,
net of related expenses 955 - 955 -
Purchase of senior notes (761) - (779) (2)
Increase in other
long-term debt - 1 27 2
Payments of other
long-term debt (4) - (12) (5)
Early settlement of
foreign exchange contracts - 150 8 150
Redemption of common shares (1) (1) (4) (4)
Dividend paid to a
non-controlling interest - (5) - (5)
Dividends (4) (4) (16) (16)
-------------------------------------------------------------------------
(30) (23) (89) (9)
-------------------------------------------------------------------------
Change in cash and cash
equivalents during the
period from continuing
operations (1) - 11 (63)
Change in cash and cash
equivalents from
discontinued operations,
including proceeds on
disposal - 1 (3) 50
-------------------------------------------------------------------------
Net change in cash and cash
equivalents during the
period (1) 1 8 (13)
Translation adjustments on
cash and cash equivalents - 1 - (1)
Cash and cash equivalents
- Beginning of period 20 9 11 25
-------------------------------------------------------------------------
Cash and cash equivalents
- End of period 19 11 19 11
-----------------------------------------------
-----------------------------------------------
Selected Segmented Information
(in millions of Canadian dollars)
(unaudited)
For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
Sales
Packaging products
Boxboard
Manufacturing 178 175 706 743
Converting 160 179 692 677
Intersegment sales (18) (23) (85) (97)
-----------------------------------------------
320 331 1,313 1,323
Containerboard
Manufacturing 124 154 517 615
Converting 210 232 887 962
Intersegment sales (82) (93) (342) (374)
-----------------------------------------------
252 293 1,062 1,203
Specialty products
Manufacturing 78 83 332 315
Converting 61 70 243 267
Recovery and deinked
pulp 77 81 270 376
Intersegment sales (16) (25) (76) (98)
-----------------------------------------------
200 209 769 860
Intersegment sales (22) (19) (67) (100)
-----------------------------------------------
750 814 3,077 3,286
Tissue papers
Manufacturing and
converting 212 228 840 787
Intersegment sales (10) (22) (40) (56)
-------------------------------------------------------------------------
Total 952 1,020 3,877 4,017
-------------------------------------------------------------------------
-------------------------------------------------------------------------
For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
Operating income (loss)
before depreciation and
amortization from
continuing operations
Packaging products
Boxboard
Manufacturing 14 (16) 48 (40)
Converting 17 11 59 50
Others (37) (2) (40) (13)
-----------------------------------------------
(6) (7) 67 (3)
Containerboard
Manufacturing 10 17 91 57
Converting 16 7 56 53
Others 3 (5) (2) (7)
-----------------------------------------------
29 19 145 103
Specialty products
Manufacturing 7 6 34 10
Converting 6 9 25 30
Recovery and deinked
pulp 3 6 15 24
Others 2 (1) - -
-----------------------------------------------
18 20 74 64
-----------------------------------------------
41 32 286 164
Tissue papers
Manufacturing and
converting 34 41 153 89
Corporate (5) (21) (7) (24)
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Operating income before
depreciation and
amortization from
continuing operations 70 52 432 229
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Depreciation and
amortization
Boxboard (18) (20) (75) (72)
Containerboard (15) (16) (63) (63)
Specialty products (9) (8) (34) (33)
Tissue papers (10) (9) (37) (35)
Corporate and
eliminations (4) (2) (9) (10)
-----------------------------------------------
(56) (55) (218) (213)
-----------------------------------------------
Operating income (loss)
from continuing
operations 14 (3) 214 16
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For the 3-month periods For the years
ended December 31, ended December 31,
2009 2008 2009 2008
-----------------------------------------------
Purchase of property,
plant and equipment
Packaging products
Boxboard
Manufacturing 10 7 30 21
Converting 7 13 28 36
-----------------------------------------------
17 20 58 57
Containerboard
Manufacturing 5 7 15 17
Converting 9 6 16 21
-----------------------------------------------
14 13 31 38
Specialty products
Manufacturing 2 4 7 9
Converting 3 1 7 4
Recovery and deinked
pulp 4 9 18 28
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9 14 32 41
-----------------------------------------------
40 47 121 136
Tissue papers
Manufacturing and
converting 5 12 31 37
Corporate 6 3 20 8
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Total 51 62 172 181
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Purchase of property,
plant and equipment
included in accounts
payable
Beginning of period 11 8 14 17
End of period (13) (14) (13) (14)
-------------------------------------------------------------------------
Total investing
activities 49 56 173 184
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-------------------------------------------------------------------------
For further information: MEDIA: Hubert Bolduc, Vice-President, Communications and Public Affairs, (514) 912-3790; INVESTORS: Didier Filion, Director, Investor relations, (514) 282-2697; Source: Christian Dubé, Vice-President and Chief Financial Officer
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