Lower results reflect effects of pandemic and continued
higher logistical costs and supply chain constraints
KINGSEY FALLS, QC, Feb. 24, 2022 /CNW Telbec/ - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period and fiscal year ended December 31, 2021.
Q4 2021 Highlights (comparative figures have been restated to reflect discontinued operations2)
- Sales of $1,028 million (compared with $1,030 million in Q3 2021 and $1,030 million in Q4 2020)
- As reported (including specific items)
- Operating income (loss) of $(90) million (compared with $73 million in Q3 2021 and $104 million in Q4 2020)
- Operating income (loss) before depreciation and amortization (OIBD) of $(30) million (compared with $136 million in Q3 2021 and $163 million in Q4 2020)
- Net earnings per common share of $1.04 (compared with $0.32 in Q3 2021 and $0.72 in Q4 2020)
- Adjusted (excluding specific items1)
- Operating income of $2 million (compared with $44 million in Q3 2021 and $80 million in Q4 2020)
- OIBD of $62 million (compared with $107 million in Q3 2021 and $139 million in Q4 2020)
- Net loss per common share of $(0.09) (compared with net loss per common share of $(0.01) in Q3 2021 and net earnings per common share of $0.42 in Q4 2020)
2021 Annual Highlights (comparative figures have been restated to reflect discontinued operations2)
- Sales of $3,956 million (compared with $4,105 million in 2020)
- As reported (including specific items)
- Operating income of $50 million (compared with $292 million in 2020)
- Operating income before depreciation and amortization (OIBD) of $302 million (compared with $543 million in 2020)
- Net earnings per common share of $1.60 (compared with $2.04 in 2020)
- Adjusted (excluding specific items1)
- Operating income of $137 million (compared with $295 million in 2020)
- OIBD of $389 million (compared with $546 million in 2020)
- Net earnings per common share of $0.26 (compared with $1.95 in 2020)
- Financial information for the Boxboard Europe segment is presented as discontinued operations following the monetization of the Corporation's 57.6% controlling equity interest in Reno de Medici S.p.A. (RDM) which generated net proceeds of $450 million. The transaction was announced in July 2021 and closed on October 26, 20212. The net gain after income tax amounts to $204 million.
- Net debt1 of $1,351 million as at December 31, 2021 (compared with $1,760 million as at September 30, 2021). Net debt to adjusted OIBD ratio1 of 3.5x down from 3.8x as at September 30, 2021.
- Total capital expenditures, net of disposals, of $233 million in 20212, compared to $164 million in 20202. Forecasted 2022 net capital expenditures of $415 million, encompassing $275 million for the Bear Island containerboard conversion project in Virginia, USA.
1 |
This Non-IFRS measures and other financial measures are respectively non-IFRS financial measures and Non-IFRS ratio which are not standardized financial measures under IFRS and therefore might not be comparable to similar financial measures disclosed by other corporations. Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 |
2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
Mario Plourde, President and CEO, commented: " It was a difficult end to the year, and our disappointing fourth quarter results are a consequence of the escalation in costs and operational disruptions that continued to develop as the quarter progressed. Ongoing challenges from supply chain constraints, reduced labour availability and higher logistics costs related to the pandemic were further exacerbated by rail disruptions caused by flooding in Western Canada in November that significantly impeded logistics across Canada, and the subsequent emergence and rapid escalation of the Omicron variant in December. These factors intensified pressures on costs, impacted production levels in several of our operations, and delayed delivery times of products to customers. Notwithstanding this challenging environment the Specialty Products segment continued to perform well, driven by product innovation and strategic commercial decisions.
In the context of this challenging business environment, we continued to take concrete steps to unlock value. The sale of our 57.6% controlling equity position in Reno de Medici S.p.A. generated net proceeds of $450 million, which were used in part to redeem Senior unsecured notes. In addition to this, we continued to return capital to shareholders through the 50% dividend increase in the second quarter, and ongoing share buy-back program that resulted in 1.65 million shares being repurchased in the third quarter."
Discussing near-term outlook, Mr. Plourde commented, "The ongoing pandemic and related ramifications on input costs, logistics, labour and demand remain unpredictable. Many of these factors continued in January, but we have begun to see improvement in labour availability in February. Demand remains solid for our packaging businesses, and results will reflect lower raw material costs in the near-term and roll-out of the announced price increases over the coming months. Without question the tissue segment remains challenging, and our priority is to return to our pre-pandemic performance trajectory. The fourth quarter was exceptionally difficult with major and unprecedented headwinds. However, despite these difficult conditions the year was also successful in terms of a well executed exit from Europe and increased financial capacity. Moreover, I would like to take this opportunity to express my heartfelt appreciation for our employees who have played such a key role in our ability to continue servicing our customers through these challenging times."
Financial Summary
Selected consolidated information
(in millions of Canadian dollars, except amounts per common share) (unaudited) |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
Sales |
3,956 |
4,105 |
1,028 |
1,030 |
1,030 |
As Reported |
|||||
Operating income (loss) before depreciation and amortization (OIBD) |
302 |
543 |
(30) |
136 |
163 |
Operating income (loss) |
50 |
292 |
(90) |
73 |
104 |
Net earnings |
162 |
198 |
105 |
32 |
73 |
per common share |
$1.60 |
$2.04 |
$1.04 |
$0.32 |
$0.72 |
Margin (OIBD)1 |
7.6% |
13.2% |
(2.9%) |
13.2% |
15.8% |
Adjusted1 |
|||||
Operating income before depreciation and amortization (OIBD) |
389 |
546 |
62 |
107 |
139 |
Operating income |
137 |
295 |
2 |
44 |
80 |
Net earnings (loss) |
27 |
187 |
(9) |
(1) |
42 |
per common share |
$0.26 |
$1.95 |
($0.09) |
($0.01) |
$0.42 |
Margin (OIBD) |
9.8% |
13.3% |
6.0% |
10.4% |
13.5% |
Segmented OIBD as reported
(in millions of Canadian dollars) (unaudited) |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
Packaging Products |
|||||
Containerboard |
350 |
436 |
71 |
88 |
150 |
Specialty Products |
74 |
58 |
21 |
17 |
15 |
Tissue Papers |
(38) |
145 |
(98) |
47 |
27 |
Corporate Activities |
(84) |
(96) |
(24) |
(16) |
(29) |
OIBD as reported |
302 |
543 |
(30) |
136 |
163 |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
Segmented adjusted OIBD1
(in millions of Canadian dollars) (unaudited) |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
Packaging Products |
|||||
Containerboard |
372 |
403 |
70 |
94 |
110 |
Specialty Products |
74 |
60 |
21 |
17 |
15 |
Tissue Papers |
27 |
175 |
(6) |
12 |
40 |
Corporate Activities |
(84) |
(92) |
(23) |
(16) |
(26) |
Adjusted OIBD1 |
389 |
546 |
62 |
107 |
139 |
Analysis of results for the three-month period ended December 31, 2021 (compared to the same period last year2)
Sales of $1,028 million decreased by $2 million compared with the same period last year. This reflects a $54 million negative volume impact attributable to the logistics and production constraints in Containerboard and Tissue, and ongoing Covid-related demand impacts in Tissue, and a less favourable Canadian dollar - US dollar exchange rate, which further reduced sales by $26 million. These were offset by a $75 million benefit from more favourable pricing and sales mix in all segments except Tissue.
The Corporation generated an operating income (loss) before depreciation and amortization (OIBD) of $(30) million in the fourth quarter of 2021, down from $163 million in the fourth quarter of 2020. On an adjusted basis1, fourth quarter OIBD totaled $62 million, a decrease of $77 million, or 55% from the $139 million generated in the same period last year. This decrease is largely attributable to higher raw material costs and inflationary pressures in labour and transportation in all segments, and lower volumes and higher energy costs in Containerboard and Tissue. These were partially offset by benefits of pricing increases in Containerboard and Specialty Products.
The main specific items, before income taxes, that impacted our fourth quarter 2021 OIBD and/or net earnings were:
- $87 million of impairment charges in the Tissue Papers segment (OIBD and net earnings);
- $6 million additional restructuring charges and closure costs related to closed plants in Tissue Papers segment (OIBD and net earnings);
- $20 million loss on repurchase of long-term debt (net earnings);
- $204 million total gain, net of taxes, from a business disposal within discontinued operations (net earnings).
For the 3-month period ended December 31, 2021, the Corporation posted net earnings of $105 million, or $1.04 per common share, compared to net earnings of $73 million, or $0.72 per common share, in the same period of 2020. On an adjusted basis1, the Corporation generated net loss of $9 million in the fourth quarter of 2021, or $(0.09) per common share, compared to net earnings of $42 million, or $0.42 per common share, in the same period of 2020.
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
Dividend on common shares and normal course issuer bid
The Board of Directors of Cascades declared a quarterly dividend of $0.12 per common share to be paid on March 24, 2022 to shareholders of record at the close of business on March 10, 2022. This dividend is an "eligible dividend" as per the Income Tax Act (R.C.S. (1985), Canada). During the fourth quarter of 2021, Cascades purchased no common shares for cancellation.
2021 Fourth Quarter Results Conference Call Details
Management will discuss the 2021 fourth quarter financial results during a conference call today at 9:00 a.m. EDT. The call can be accessed by dialing 1-888-390-0620 (international 1-416-764-8651). The conference call, including the investor presentation, will be broadcast live on the Cascades website (www.cascades.com under the "Investors" section). A replay of the call will be available on the Cascades website and may also be accessed by phone until March 24, 2022 by dialing 1-888-390-0541 (international 1-416-764-8677), access code 904516.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 10,000 women and men across a network of close to 80 facilities in North America. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. 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 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.
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars) (unaudited) |
December 31, |
December 31, |
Assets |
||
Current assets |
||
Cash and cash equivalents |
174 |
384 |
Accounts receivable |
510 |
659 |
Current income tax assets |
19 |
23 |
Inventories |
494 |
569 |
Current portion of financial assets |
1 |
5 |
1,198 |
1,640 |
|
Long-term assets |
||
Investments in associates and joint ventures |
87 |
82 |
Property, plant and equipment |
2,522 |
2,772 |
Intangible assets with finite useful life |
88 |
160 |
Financial assets |
6 |
16 |
Other assets |
54 |
50 |
Deferred income tax assets |
138 |
170 |
Goodwill and other intangible assets with indefinite useful life |
473 |
522 |
4,566 |
5,412 |
|
Liabilities and Equity |
||
Current liabilities |
||
Bank loans and advances |
1 |
12 |
Trade and other payables |
707 |
861 |
Current income tax liabilities |
12 |
17 |
Current portion of long-term debt |
74 |
102 |
Current portion of provisions for contingencies and charges |
12 |
14 |
Current portion of financial liabilities and other liabilities |
16 |
25 |
822 |
1,031 |
|
Long-term liabilities |
||
Long-term debt |
1,450 |
1,949 |
Provisions for contingencies and charges |
47 |
57 |
Financial liabilities |
6 |
6 |
Other liabilities |
122 |
202 |
Deferred income tax liabilities |
192 |
210 |
2,639 |
3,455 |
|
Equity |
||
Capital stock |
614 |
622 |
Contributed surplus |
14 |
13 |
Retained earnings |
1,274 |
1,146 |
Accumulated other comprehensive loss |
(23) |
(28) |
Equity attributable to Shareholders |
1,879 |
1,753 |
Non-controlling interests |
48 |
204 |
Total equity |
1,927 |
1,957 |
4,566 |
5,412 |
CONSOLIDATED STATEMENTS OF EARNINGS
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars, except per common share amounts and number of common shares) (unaudited) |
2021 |
2020 |
2021 |
2020 |
Sales |
1,028 |
1,030 |
3,956 |
4,105 |
Cost of sales and expenses |
||||
Cost of sales (including depreciation and amortization of $60 million for 3-month period (2020 — $59 million) and $252 million for the year (2020 — $251 million)) |
933 |
859 |
3,465 |
3,444 |
Selling and administrative expenses |
96 |
91 |
356 |
367 |
Gain on acquisitions, disposals and others |
(1) |
(38) |
(40) |
(43) |
Impairment charges and restructuring costs |
94 |
12 |
110 |
43 |
Foreign exchange gain |
(3) |
— |
(2) |
(1) |
Loss (gain) on derivative financial instruments |
(1) |
2 |
17 |
3 |
1,118 |
926 |
3,906 |
3,813 |
|
Operating income (loss) |
(90) |
104 |
50 |
292 |
Financing expense |
20 |
25 |
84 |
101 |
Interest expense (revenue) on employee future benefits and other liabilities |
2 |
(10) |
5 |
(7) |
Loss on repurchase of long-term debt |
20 |
— |
20 |
6 |
Foreign exchange gain on long-term debt and financial instruments |
— |
(3) |
(3) |
(6) |
Fair value revaluation loss on investments |
— |
3 |
— |
3 |
Share of results of associates and joint ventures |
(7) |
(5) |
(18) |
(14) |
Earnings (loss) before income taxes |
(125) |
94 |
(38) |
209 |
Provision for (recovery of) income taxes |
(29) |
16 |
9 |
26 |
Net earnings (loss) from continuing operations including non-controlling interests for the period |
(96) |
78 |
(47) |
183 |
Results from discontinued operations |
204 |
(1) |
234 |
51 |
Net earnings including non-controlling interests for the period |
108 |
77 |
187 |
234 |
Net earnings attributable to non-controlling interests |
3 |
4 |
25 |
36 |
Net earnings attributable to Shareholders for the period |
105 |
73 |
162 |
198 |
Net earnings (loss) from continuing operations per common share |
||||
Basic |
($0.98) |
$0.73 |
($0.59) |
$1.74 |
Diluted |
($0.98) |
$0.73 |
($0.59) |
$1.72 |
Net earnings per common share |
||||
Basic |
$1.04 |
$0.72 |
$1.60 |
$2.04 |
Diluted |
$1.03 |
$0.72 |
$1.59 |
$2.02 |
Weighted average basic number of common shares outstanding |
100,858,870 |
99,937,437 |
101,884,051 |
95,924,835 |
Weighted average number of diluted common shares |
101,746,156 |
101,009,931 |
102,902,364 |
97,061,136 |
Net earnings (loss) attributable to Shareholders: |
||||
Continuing operations |
(99) |
74 |
(59) |
169 |
Discontinued operations |
204 |
(1) |
221 |
29 |
Net earnings |
105 |
73 |
162 |
198 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
Net earnings including non-controlling interests for the period |
108 |
77 |
187 |
234 |
Other comprehensive income (loss) |
||||
Items that may be reclassified subsequently to earnings |
||||
Translation adjustments |
||||
Change in foreign currency translation of foreign subsidiaries |
(5) |
(48) |
(8) |
(28) |
Change in foreign currency translation of foreign subsidiaries from discontinued operations |
3 |
(2) |
(18) |
21 |
Change in foreign currency translation related to net investment hedging activities |
8 |
29 |
11 |
16 |
Change in foreign currency translation related to net investment hedging activities from discontinued operations |
(3) |
1 |
9 |
(13) |
Cash flow hedges |
||||
Change in fair value of commodity derivative financial instruments |
(3) |
— |
2 |
2 |
Provision for income taxes |
— |
(2) |
(2) |
(2) |
Recovery of (provision for) income taxes from discontinued operations |
1 |
— |
(1) |
— |
1 |
(22) |
(7) |
(4) |
|
Items that are not released to earnings |
||||
Actuarial gain (loss) on employee future benefits |
— |
— |
29 |
(19) |
Actuarial loss on employee future benefits from discontinued operations |
— |
(3) |
— |
(3) |
Recovery of (provision for) income taxes |
— |
— |
(7) |
5 |
Recovery of income taxes from discontinued operations |
— |
1 |
— |
1 |
— |
(2) |
22 |
(16) |
|
Other comprehensive income (loss) |
1 |
(24) |
15 |
(20) |
Comprehensive income including non-controlling interests for the period |
109 |
53 |
202 |
214 |
Comprehensive income attributable to non-controlling interests for the period |
— |
— |
13 |
43 |
Comprehensive income attributable to Shareholders for the period |
109 |
53 |
189 |
171 |
Comprehensive income (loss) attributable to Shareholders: |
||||
Continuing operations |
(98) |
56 |
(33) |
145 |
Discontinued operations |
207 |
(3) |
222 |
26 |
Comprehensive income |
109 |
53 |
189 |
171 |
CONSOLIDATED STATEMENTS OF EQUITY
For the year ended December 31, 2021 |
|||||||
(in millions of Canadian dollars) (unaudited) |
CAPITAL STOCK |
CONTRIBUTED SURPLUS |
RETAINED EARNINGS |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS |
NON-CONTROLLING INTERESTS |
TOTAL EQUITY |
Balance - Beginning of year |
622 |
13 |
1,146 |
(28) |
1,753 |
204 |
1,957 |
Comprehensive income (loss) |
|||||||
Net earnings |
— |
— |
162 |
— |
162 |
25 |
187 |
Other comprehensive income (loss) |
— |
— |
22 |
5 |
27 |
(12) |
15 |
— |
— |
184 |
5 |
189 |
13 |
202 |
|
Dividends |
— |
— |
(41) |
— |
(41) |
(14) |
(55) |
Dividends paid to non-controlling interests from discontinued operations |
— |
— |
— |
— |
— |
(3) |
(3) |
Stock options expense |
— |
1 |
— |
— |
1 |
— |
1 |
Issuance of common shares upon exercise of stock options |
2 |
— |
— |
— |
2 |
— |
2 |
Redemption of common shares |
(10) |
— |
(16) |
— |
(26) |
— |
(26) |
Acquisitions of non-controlling interests |
— |
— |
1 |
— |
1 |
(1) |
— |
Disposals of non-controlling interests |
— |
— |
— |
— |
— |
(151) |
(151) |
Balance - End of year |
614 |
14 |
1,274 |
(23) |
1,879 |
48 |
1,927 |
For the year ended December 31, 2020 |
|||||||
(in millions of Canadian dollars) (unaudited) |
CAPITAL STOCK |
CONTRIBUTED SURPLUS |
RETAINED EARNINGS |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS |
NON-CONTROLLING INTERESTS |
TOTAL EQUITY |
Balance - Beginning of year |
491 |
15 |
1,003 |
(17) |
1,492 |
177 |
1,669 |
Comprehensive income (loss) |
|||||||
Net earnings |
— |
— |
198 |
— |
198 |
36 |
234 |
Other comprehensive income |
— |
— |
(16) |
(11) |
(27) |
7 |
(20) |
— |
— |
182 |
(11) |
171 |
43 |
214 |
|
Dividends |
— |
— |
(31) |
— |
(31) |
(14) |
(45) |
Dividends paid to non-controlling interests from discontinued operations |
— |
— |
— |
— |
— |
(2) |
(2) |
Issuance of common shares on public offering |
125 |
— |
(4) |
— |
121 |
— |
121 |
Stock options expense |
— |
1 |
— |
— |
1 |
— |
1 |
Issuance of common shares upon exercise of stock options |
10 |
(3) |
— |
— |
7 |
— |
7 |
Redemption of common shares |
(4) |
— |
(4) |
— |
(8) |
— |
(8) |
Balance - End of year |
622 |
13 |
1,146 |
(28) |
1,753 |
204 |
1,957 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
Operating activities from continuing operations |
||||
Net earnings attributable to Shareholders for the period |
105 |
73 |
162 |
198 |
Results from discontinued operations |
(204) |
1 |
(234) |
(51) |
Results from discontinued operations attributable to non-controlling interests |
— |
— |
13 |
22 |
Net earnings (loss) from continuing operations |
(99) |
74 |
(59) |
169 |
Adjustments for: |
||||
Financing expense and interest expense (revenue) on employee future benefits and |
22 |
15 |
89 |
94 |
Loss on repurchase of long-term debt |
20 |
— |
20 |
6 |
Depreciation and amortization |
60 |
59 |
252 |
251 |
Gain on acquisitions, disposals and others |
(1) |
(38) |
(40) |
(43) |
Impairment charges and restructuring costs |
94 |
12 |
110 |
43 |
Unrealized loss (gain) on derivative financial instruments |
(1) |
2 |
17 |
3 |
Foreign exchange gain on long-term debt and financial instruments |
— |
(3) |
(3) |
(6) |
Provision for (recovery of) income taxes |
(29) |
16 |
9 |
26 |
Fair value revaluation loss on investments |
— |
3 |
— |
3 |
Share of results of associates and joint ventures |
(7) |
(5) |
(18) |
(14) |
Net earnings attributable to non-controlling interests |
3 |
4 |
12 |
14 |
Net financing expense paid |
(11) |
(5) |
(96) |
(76) |
Premium and transaction fees paid on long-term debt redemption |
(24) |
— |
(24) |
(4) |
Net income taxes received |
— |
1 |
2 |
9 |
Dividends received |
6 |
3 |
11 |
10 |
Provisions for contingencies and charges and other liabilities |
(13) |
(7) |
(35) |
(27) |
20 |
131 |
247 |
458 |
|
Changes in non-cash working capital components |
49 |
27 |
(36) |
19 |
69 |
158 |
211 |
477 |
|
Investing activities from continuing operations |
||||
Disposals in associates and joint ventures |
— |
— |
1 |
3 |
Payments for property, plant and equipment |
(95) |
(72) |
(286) |
(219) |
Proceeds from disposals of property, plant and equipment |
2 |
46 |
53 |
55 |
Change in intangible and other assets |
(1) |
(2) |
(15) |
(9) |
Cash received from business combinations |
— |
— |
— |
2 |
(94) |
(28) |
(247) |
(168) |
|
Financing activities from continuing operations |
||||
Bank loans and advances |
(6) |
3 |
(11) |
1 |
Change in credit facilities |
5 |
(50) |
5 |
(131) |
Issuance of unsecured senior notes, net of related expenses |
— |
— |
— |
409 |
Repurchase of unsecured senior notes |
(372) |
— |
(372) |
(264) |
Increase in other long-term debt |
— |
31 |
5 |
31 |
Payments of other long-term debt, including lease obligations |
(12) |
(85) |
(75) |
(117) |
Settlement of derivative financial instruments |
— |
— |
— |
1 |
Issuance of common shares on public offering, net of transaction fees |
— |
120 |
— |
120 |
Issuance of common shares upon exercise of stock options |
— |
— |
2 |
7 |
Redemption of common shares |
— |
(3) |
(26) |
(8) |
Payment of other liabilities |
— |
— |
— |
(121) |
Dividends paid to non-controlling interests and acquisition of non-controlling interests |
(4) |
(3) |
(16) |
(14) |
Dividends paid to the Corporation's Shareholders |
(12) |
(9) |
(41) |
(31) |
(401) |
4 |
(529) |
(117) |
|
Change in cash and cash equivalents during the period from continuing |
(426) |
134 |
(565) |
192 |
Change in cash and cash equivalents from discontinued operations, including reclassification of beginning of year cash and cash equivalent in 2021 |
450 |
27 |
356 |
41 |
Net change in cash and cash equivalents during the period |
24 |
161 |
(209) |
233 |
Currency translation on cash and cash equivalents |
(1) |
(4) |
(1) |
(4) |
Cash and cash equivalents - Beginning of the period |
151 |
227 |
384 |
155 |
Cash and cash equivalents - End of the period |
174 |
384 |
174 |
384 |
SEGMENTED INFORMATION
The Corporation analyzes the performance of its operating segments based on their operating income before depreciation and amortization, which is not a measure of performance under International Financial Reporting Standards (IFRS). However, the chief operating decision-maker (CODM) uses this performance measure to assess the operating performance of each reportable segment. Earnings for each segment are prepared on the same basis as those of the Corporation. Intersegment operations are recorded on the same basis as sales to third parties, which are at fair market value. The accounting policies of the reportable segments are the same as the Corporation's accounting policies described in its most recent audited consolidated financial statements for the year ended December 31, 2020.
The Corporation's operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The Chief Executive Officer has authority for resource allocation and management of the Corporation's performance and is therefore the CODM.
The Corporation's operations are managed in three segments: Containerboard and Specialty Products (which constitutes the Corporation's Packaging Products) and Tissue Papers.
SALES TO |
||||||||
For the 3-month periods ended December 31, |
||||||||
Canada |
United States |
Other countries |
Total |
|||||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
Packaging Products |
||||||||
Containerboard |
294 |
295 |
207 |
205 |
1 |
— |
502 |
500 |
Specialty Products |
55 |
46 |
96 |
76 |
— |
1 |
151 |
123 |
Inter-segment sales |
(4) |
(4) |
(4) |
(2) |
— |
— |
(8) |
(6) |
345 |
337 |
299 |
279 |
1 |
1 |
645 |
617 |
|
Tissue Papers |
69 |
71 |
270 |
310 |
— |
— |
339 |
381 |
Inter-segment sales and Corporate Activities |
40 |
29 |
4 |
3 |
— |
— |
44 |
32 |
454 |
437 |
573 |
592 |
1 |
1 |
1,028 |
1,030 |
SALES TO |
||||||||
For the years ended December 31, |
||||||||
Canada |
United States |
Other countries |
Total |
|||||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
Packaging Products |
||||||||
Containerboard |
1,197 |
1,130 |
811 |
787 |
1 |
1 |
2,009 |
1,918 |
Specialty Products |
202 |
165 |
346 |
305 |
— |
3 |
548 |
473 |
Inter-segment sales |
(14) |
(13) |
(18) |
(5) |
— |
— |
(32) |
(18) |
1,385 |
1,282 |
1,139 |
1,087 |
1 |
4 |
2,525 |
2,373 |
|
Tissue Papers |
252 |
278 |
1,020 |
1,336 |
— |
1 |
1,272 |
1,615 |
Inter-segment sales and Corporate Activities |
145 |
115 |
14 |
2 |
— |
— |
159 |
117 |
1,782 |
1,675 |
2,173 |
2,425 |
1 |
5 |
3,956 |
4,105 |
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION |
||||
For the 3-month periods ended |
For the years ended December |
|||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
Packaging Products |
||||
Containerboard |
71 |
150 |
350 |
436 |
Specialty Products |
21 |
15 |
74 |
58 |
92 |
165 |
424 |
494 |
|
Tissue Papers |
(98) |
27 |
(38) |
145 |
Corporate Activities |
(24) |
(29) |
(84) |
(96) |
Operating income (loss) before depreciation and amortization |
(30) |
163 |
302 |
543 |
Depreciation and amortization |
(60) |
(59) |
(252) |
(251) |
Financing expense and interest expense (revenue) on employee future benefits and other liabilities |
(22) |
(15) |
(89) |
(94) |
Loss on repurchase of long-term debt |
(20) |
— |
(20) |
(6) |
Foreign exchange gain on long-term debt and financial instruments |
— |
3 |
3 |
6 |
Fair value revaluation loss on investments |
— |
(3) |
— |
(3) |
Share of results of associates and joint ventures |
7 |
5 |
18 |
14 |
Earnings (loss) before income taxes |
(125) |
94 |
(38) |
209 |
PAYMENTS FOR PROPERTY, PLANT AND EQUIPMENT |
||||
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2021 |
2020 |
2021 |
2020 |
Packaging Products |
||||
Containerboard |
97 |
44 |
236 |
111 |
Specialty Products |
19 |
10 |
42 |
25 |
116 |
54 |
278 |
136 |
|
Tissue Papers |
23 |
42 |
49 |
104 |
Corporate Activities |
20 |
10 |
46 |
26 |
Total acquisitions |
159 |
106 |
373 |
266 |
Right-of-use assets acquisitions and of property, plant and equipment included in other debts |
(13) |
(21) |
(43) |
(53) |
146 |
85 |
330 |
213 |
|
Acquisitions for property, plant and equipment included in "Trade and other payables" |
||||
Beginning of period |
24 |
18 |
31 |
37 |
End of period |
(75) |
(31) |
(75) |
(31) |
Payments for property, plant and equipment |
95 |
72 |
286 |
219 |
Proceeds from disposals of property, plant and equipment |
(2) |
(46) |
(53) |
(55) |
Payments for property, plant and equipment net of proceeds from disposals |
93 |
26 |
233 |
164 |
SUPPLEMENTAL INFORMATION ON NON-IFRS MEASURES AND OTHER FINANCIAL MEASURES
SPECIFIC ITEMS
The Corporation incurs some specific items that adversely or positively affect its operating results. We believe it is useful for readers to be aware of these items as they provide additional information to measure performance, compare the Corporation's results between periods, and assess operating results and liquidity, notwithstanding these specific items. Management believes these specific items are not necessarily reflective of the Corporation's underlying business operations in measuring and comparing its performance and analyzing future trends. Our definition of specific items may differ from those of other corporations and some of them may arise in the future and may reduce the Corporation's available cash.
They include, but are not limited to, charges for (reversals of) impairment of assets, restructuring gains or costs, loss on refinancing and repurchase of long-term debt, some deferred tax asset provisions or reversals, premiums paid on repurchase of long-term debt, gains or losses on the acquisition or sale of a business unit, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate swaps and option fair value revaluation, foreign exchange gains or losses on long-term debt and financial instruments, fair value revaluation gain or losses on investments, specific items of discontinued operations and other significant items of an unusual, non-cash or non-recurring nature.
RECONCILIATION AND USES OF NON-IFRS AND OTHER FINANCIAL MEASURES
To provide more information for evaluating the Corporation's performance, the financial information included in this analysis contains certain data that are not performance measures under IFRS ("non-IFRS measures"), which are also calculated on an adjusted basis to exclude specific items. We believe that providing certain key performance and capital measures as well as non-IFRS measures is useful to both Management and investors, as they provide additional information to measure the performance and financial position of the Corporation. This also increases the transparency and clarity of the financial information. The following non-IFRS measures and other financial measures are used in our financial disclosures:
Non-IFRS measures
- Adjusted OIBD: Used to assess operating performance and the contribution of each segment on a comparable basis.
- Adjusted operating income: Used to assess operating performance of each segment on a comparable basis.
- Adjusted net earnings: Used to assess the Corporation's consolidated financial performance on a comparable basis.
- Adjusted free cash flow: Used to assess the Corporation's capacity to generate cash flows to meet financial obligations and/or discretionary items such as share repurchase, dividend increase and strategic investments.
- Working capital: Used to assess the short-term liquidity of the Corporation.
Other financial measures
- Total debt: Used to calculate all the Corporation's debt including long-term debt and bank loans. Often put in relation to equity to calculate the debt-to-equity ratio.
- Net debt: Used to calculate the Corporation's total debt less cash and cash equivalents. Often put in relation to adjusted OIBD to calculate net debt to adjusted OIBD ratio.
Non-IFRS ratios
- Net debt to adjusted OIBD ratio: Used to assess the Corporation's ability to pay its debt and evaluate financial leverage.
- Net debt to adjusted OIBD ratio on a pro-forma basis: Used to measure the Corporation's credit performance and evaluate the financial leverage on a comparable basis, including significant business acquisitions and excluding significant business disposals, if any.
- Adjusted OIBD margin : Used to assess operating performance and the contribution of each segment on a comparable basis.
- Adjusted net earnings per common share: Used to assess the Corporation's consolidated financial performance on a comparable basis.
- Net debt / Net debt + Shareholders' equity: Used to evaluate the Corporation's financial leverage and thus the risk to Shareholders.
- Working capital as a percentage of sales: Used to assess the Corporation's operating liquidity performance.
- Adjusted free cash flow per common share: Used to assess the Corporation's financial flexibility.
Non-IFRS and other financial measures are mainly derived from the consolidated financial statements, but do not have meanings prescribed by IFRS. These measures have limitations as an analytical tool and should not be considered on their own or as a substitute for an analysis of our results as reported under IFRS. In addition, our definitions of non-IFRS and other financial measures may differ from those of other corporations. Any such modification or reformulation may be significant.
The reconciliation of operating income (loss) to OIBD, to adjusted operating income (loss)1 and to adjusted OIBD1 by business segment is as follows:
20212 |
|||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
230 |
59 |
(108) |
(131) |
50 |
Depreciation and amortization |
120 |
15 |
70 |
47 |
252 |
Operating income (loss) before depreciation and amortization |
350 |
74 |
(38) |
(84) |
302 |
Specific items: |
|||||
Gain on acquisitions, disposals and others |
— |
— |
(40) |
— |
(40) |
Impairment charges |
1 |
— |
88 |
— |
89 |
Restructuring costs |
4 |
— |
17 |
— |
21 |
Unrealized loss on derivative financial instruments |
17 |
— |
— |
— |
17 |
22 |
— |
65 |
— |
87 |
|
Adjusted operating income (loss) before depreciation and amortization1 |
372 |
74 |
27 |
(84) |
389 |
Adjusted operating income (loss)1 |
252 |
59 |
(43) |
(131) |
137 |
20202 |
|||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
321 |
42 |
72 |
(143) |
292 |
Depreciation and amortization |
115 |
16 |
73 |
47 |
251 |
Operating income (loss) before depreciation and amortization |
436 |
58 |
145 |
(96) |
543 |
Specific items: |
|||||
Loss (gain) on acquisitions, disposals and others |
(45) |
2 |
— |
— |
(43) |
Impairment charges |
6 |
— |
23 |
1 |
30 |
Restructuring costs |
4 |
— |
7 |
2 |
13 |
Unrealized loss on derivative financial instruments |
2 |
— |
— |
1 |
3 |
(33) |
2 |
30 |
4 |
3 |
|
Adjusted operating income (loss) before depreciation and amortization1 |
403 |
60 |
175 |
(92) |
546 |
Adjusted operating income (loss)1 |
288 |
44 |
102 |
(139) |
295 |
Q4 2021 |
|||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
43 |
17 |
(115) |
(35) |
(90) |
Depreciation and amortization |
28 |
4 |
17 |
11 |
60 |
Operating income (loss) before depreciation and amortization |
71 |
21 |
(98) |
(24) |
(30) |
Specific items: |
|||||
Gain on acquisitions, disposals and others |
— |
— |
(1) |
— |
(1) |
Impairment charges |
1 |
— |
87 |
— |
88 |
Restructuring costs |
— |
— |
6 |
— |
6 |
Unrealized loss (gain) on derivative financial instruments |
(2) |
— |
— |
1 |
(1) |
(1) |
— |
92 |
1 |
92 |
|
Adjusted operating income (loss) before depreciation and amortization1 |
70 |
21 |
(6) |
(23) |
62 |
Adjusted operating income (loss)1 |
42 |
17 |
(23) |
(34) |
2 |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
Q3 2021 |
|||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
58 |
13 |
29 |
(27) |
73 |
Depreciation and amortization |
30 |
4 |
18 |
11 |
63 |
Operating income (loss) before depreciation and amortization |
88 |
17 |
47 |
(16) |
136 |
Specific items : |
|||||
Gain on acquisitions, disposals and others |
— |
— |
(39) |
— |
(39) |
Restructuring costs |
1 |
— |
4 |
— |
5 |
Unrealized loss on financial instruments |
5 |
— |
— |
— |
5 |
6 |
— |
(35) |
— |
(29) |
|
Adjusted operating income (loss) before depreciation and amortization1 |
94 |
17 |
12 |
(16) |
107 |
Operating income (loss) adjusted1 |
64 |
13 |
(6) |
(27) |
44 |
Q4 20202 |
|||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
122 |
12 |
10 |
(40) |
104 |
Depreciation and amortization |
28 |
3 |
17 |
11 |
59 |
Operating income (loss) before depreciation and amortization |
150 |
15 |
27 |
(29) |
163 |
Specific items: |
|||||
Loss (gain) on acquisitions, disposals and others |
(40) |
— |
2 |
— |
(38) |
Impairment charges (reversals) |
(2) |
— |
5 |
1 |
4 |
Restructuring costs |
— |
— |
6 |
2 |
8 |
Unrealized loss on derivative financial instruments |
2 |
— |
— |
— |
2 |
(40) |
— |
13 |
3 |
(24) |
|
Adjusted operating income (loss) before depreciation and amortization1 |
110 |
15 |
40 |
(26) |
139 |
Adjusted operating income (loss)1 |
82 |
12 |
23 |
(37) |
80 |
Net earnings, as per IFRS, are reconciled below with operating income (loss), adjusted operating income1 and adjusted operating income before depreciation and amortization1:
(in millions of Canadian dollars) (unaudited) |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
Net earnings attributable to Shareholders for the period |
162 |
198 |
105 |
32 |
73 |
Net earnings attributable to non-controlling interests |
25 |
36 |
3 |
14 |
4 |
Results from discontinued operations |
(234) |
(51) |
(204) |
(25) |
1 |
Provision for (recovery of) income taxes |
9 |
26 |
(29) |
30 |
16 |
Fair value revaluation loss on investments |
— |
3 |
— |
— |
3 |
Share of results of associates and joint ventures |
(18) |
(14) |
(7) |
(4) |
(5) |
Foreign exchange loss (gain) on long-term debt and financial instruments |
(3) |
(6) |
— |
3 |
(3) |
Financing expense and interest expense (revenue) on employee future benefits and other liabilities and loss on repurchase of long-term debt |
109 |
100 |
42 |
23 |
15 |
Operating income (loss) |
50 |
292 |
(90) |
73 |
104 |
Specific items: |
|||||
Gain on acquisitions, disposals and others |
(40) |
(43) |
(1) |
(39) |
(38) |
Impairment charges |
89 |
30 |
88 |
— |
4 |
Restructuring costs |
21 |
13 |
6 |
5 |
8 |
Unrealized loss (gain) on derivative financial instruments |
17 |
3 |
(1) |
5 |
2 |
87 |
3 |
92 |
(29) |
(24) |
|
Adjusted operating income1 |
137 |
295 |
2 |
44 |
80 |
Depreciation and amortization |
252 |
251 |
60 |
63 |
59 |
Adjusted operating income before depreciation and amortization1 |
389 |
546 |
62 |
107 |
139 |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
The following table reconciles net earnings and net earnings per common share, as per IFRS, with adjusted net earnings (loss)1 and adjusted net earnings (loss)1 per common share:
(in millions of Canadian dollars, except per common share |
NET EARNINGS (LOSS) |
NET EARNINGS (LOSS) PER COMMON SHARE3 |
|||||||||
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
||
As per IFRS |
162 |
198 |
105 |
32 |
73 |
$1.60 |
$2.04 |
$1.04 |
$0.32 |
$0.72 |
|
Specific items: |
|||||||||||
Gain on acquisitions, disposals and others |
(40) |
(43) |
(1) |
(39) |
(38) |
($0.32) |
($0.38) |
($0.01) |
($0.31) |
($0.34) |
|
Impairment charges |
89 |
30 |
88 |
— |
4 |
$0.75 |
$0.24 |
$0.74 |
— |
$0.04 |
|
Restructuring costs |
21 |
13 |
6 |
5 |
8 |
$0.15 |
$0.10 |
$0.04 |
$0.04 |
$0.05 |
|
Unrealized loss (gain) on derivative financial instruments |
17 |
3 |
(1) |
5 |
2 |
$0.11 |
$0.03 |
($0.01) |
$0.03 |
$0.02 |
|
Loss on repurchase of long-term debt |
20 |
6 |
20 |
— |
— |
$0.13 |
$0.05 |
$0.13 |
— |
— |
|
Unrealized loss (gain) on interest rate swaps and option fair value |
1 |
(11) |
1 |
— |
(11) |
— |
($0.12) |
— |
— |
($0.12) |
|
Foreign exchange loss (gain) on long-term debt and financial instruments |
(3) |
(6) |
— |
3 |
(3) |
($0.02) |
($0.05) |
— |
$0.03 |
($0.02) |
|
Fair value revaluation loss on investments |
— |
3 |
— |
— |
3 |
— |
$0.02 |
— |
— |
$0.02 |
|
Included in discontinued operations, net of tax |
(224) |
6 |
(204) |
(20) |
8 |
($2.14) |
$0.04 |
($2.02) |
($0.12) |
$0.05 |
|
Tax effect on specific items, other tax adjustments and attributable to non-controlling interest3 |
(16) |
(12) |
(23) |
13 |
(4) |
— |
($0.02) |
— |
— |
— |
|
(135) |
(11) |
(114) |
(33) |
(31) |
($1.34) |
($0.09) |
($1.13) |
($0.33) |
($0.30) |
||
Adjusted1 |
27 |
187 |
(9) |
(1) |
42 |
$0.26 |
$1.95 |
($0.09) |
($0.01) |
$0.42 |
|
Weighted average basic number of common shares outstanding |
101,884,051 |
95,924,835 |
100,858,870 |
102,129,769 |
99,937,437 |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. |
3 Specific amounts per common share are calculated on an after-tax basis and are net of the portion attributable to non-controlling interests. Per share amounts in line item ''Tax effect on specific items, other tax adjustments and attributable to non-controlling interests'' only include the effect of tax adjustments. Please refer to "Provision for income taxes" section for more details. |
The following table reconciles cash flow from operating activities from continuing operations with operating income (loss) and operating income (loss) before depreciation and amortization:
(in millions of Canadian dollars) (unaudited) |
20211 |
20201 |
Q4 2021 |
Q3 2021 |
Q4 20201 |
Cash flow from operating activities from continuing operations |
211 |
477 |
69 |
45 |
158 |
Changes in non-cash working capital components |
36 |
(19) |
(49) |
13 |
(27) |
Depreciation and amortization |
(252) |
(251) |
(60) |
(63) |
(59) |
Net income taxes received |
(2) |
(9) |
— |
(1) |
(1) |
Net financing expense paid |
96 |
76 |
11 |
41 |
5 |
Premium and transaction fees paid on long-term debt redemption |
24 |
4 |
24 |
— |
— |
Gain on acquisitions, disposals and others |
40 |
43 |
1 |
39 |
38 |
Impairment charges and restructuring costs |
(110) |
(43) |
(94) |
(5) |
(12) |
Unrealized loss (gain) on derivative financial instruments |
(17) |
(3) |
1 |
(5) |
(2) |
Provisions for contingencies and charges and other liabilities, net of dividends received |
24 |
17 |
7 |
9 |
4 |
Operating income (loss) |
50 |
292 |
(90) |
73 |
104 |
Depreciation and amortization |
252 |
251 |
60 |
63 |
59 |
Operating income (loss) before depreciation and amortization |
302 |
543 |
(30) |
136 |
163 |
1 2020 and first quarter 2021 consolidated results and consolidated cash flows have been adjusted to reflect retrospective adjustments of discontinued operations. |
The following table reconciles cash flow from operating activities from continuing operations with cash flow from operating activities from continuing operations (excluding changes in non-cash working capital components) and adjusted cash flow from operating activities from continuing operations1. It also reconciles adjusted cash flow from operating activities from continuing operations1 to adjusted free cash flow1, which is also calculated on a per common share basis:
(in millions of Canadian dollars, except per common share amounts or otherwise noted) (unaudited) |
20212 |
20202 |
Q4 2021 |
Q3 2021 |
Q4 20202 |
Cash flow from operating activities from continuing operations |
211 |
477 |
69 |
45 |
158 |
Changes in non-cash working capital components |
36 |
(19) |
(49) |
13 |
(27) |
Cash flow from operating activities from continuing operations(excluding changes in non-cash working capital components) |
247 |
458 |
20 |
58 |
131 |
Restructuring costs |
25 |
11 |
7 |
12 |
6 |
Premium and transaction fees paid on long-term debt redemption |
24 |
4 |
24 |
— |
— |
Specific items paid |
49 |
15 |
31 |
12 |
6 |
Adjusted cash flow from operating activities from continuing operations1 |
296 |
473 |
51 |
70 |
137 |
Capex expenditures |
(286) |
(219) |
(95) |
(54) |
(72) |
Change in intangible and other assets |
(15) |
(9) |
(1) |
(3) |
(2) |
Lease obligation payments |
(47) |
(43) |
(12) |
(12) |
(13) |
Proceeds from disposals of property, plant and equipment |
53 |
55 |
2 |
50 |
46 |
1 |
257 |
(55) |
51 |
96 |
|
Dividends paid to the Corporation's Shareholders and to non-controlling interests |
(55) |
(45) |
(16) |
(17) |
(12) |
Adjusted free cash flow generated (used)1 |
(54) |
212 |
(71) |
34 |
84 |
Adjusted free cash flow generated (used)1 per common share (in Canadian dollars) |
($0.53) |
$2.21 |
($0.70) |
$0.33 |
$0.84 |
Weighted average basic number of common shares outstanding |
101,884,051 |
95,924,835 |
100,858,870 |
102,129,769 |
99,937,437 |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
2 2020 and first quarter 2021 consolidated cash flows have been adjusted to reflect retrospective adjustments of discontinued operations. |
The following table reconciles total debt1 and net debt1 with the ratio of net debt1 to adjusted operating income before depreciation and amortization (adjusted OIBD1):
(in millions of Canadian dollars) (unaudited) |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
Long-term debt |
1,450 |
1,830 |
1,949 |
Current portion of long-term debt |
74 |
74 |
102 |
Bank loans and advances |
1 |
7 |
12 |
Total debt1 |
1,525 |
1,911 |
2,063 |
Less: Cash and cash equivalents |
174 |
151 |
384 |
Net debt1 as reported |
1,351 |
1,760 |
1,679 |
Adjusted OIBD1 as reported on a last twelve months basis (including discontinued operations for the year ended |
389 |
466 |
675 |
Net debt / Adjusted OIBD ratio1 |
3.5x |
3.8x |
2.5x |
1 Please refer to the "Supplemental Information on Non-IFRS Measures and Other Financial Measures" section for a complete reconciliation. |
Source:
Allan Hogg
Vice-President and Chief Financial Officer
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SOURCE Cascades Inc.
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