MONTREAL, July 31, 2014 /CNW Telbec/ - Consolidated sales for the three-month period ended June 28, 2014, were $404 million, as compared to $399 million in the same quarter a year ago. The Company generated net earnings of $30 million or $0.30 per share in the June 2014 quarter compared to a net loss of $7 million or $0.07 per share in the June 2013 quarter. The June 2014 results include a gain of $14 million related to the sale of land. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $30 million for the three-month period ended June 28, 2014, as compared to adjusted EBITDA of $30 million a year ago and adjusted EBITDA of $18 million in the prior quarter.
Business Segment Results
The Specialty Cellulose Pulp segment generated adjusted EBITDA of $19 million on sales of $126 million for the quarter ended June 2014, compared to adjusted EBITDA of $18 million on sales of $128 million in the prior quarter. Demand for specialty grades was flat while US and euro prices were relatively unchanged quarter-over-quarter. The prior quarter sales included a $2 million favourable adjustment for volume penalties paid by customers relating to the calendar 2013 period. Currency was unfavourable during the quarter as the Canadian dollar strengthened by 1.1% versus the US dollar and the euro. Overall, Canadian dollar equivalent pricing for specialty grades declined by $77 per tonne. US dollar prices for viscose grades also declined. Combined with the unfavourable currency effect, prices declined by $51 per tonne. The viscose market remains oversupplied and prices are relatively low. Overall, pricing reduced adjusted EBITDA by $4 million. Shipments were equal to 80% of capacity as compared to 81% in the prior quarter. Costs declined by $3 million due to the reversal of net realizable value write-downs as the Temiscaming mill shipped more viscose grade pulp than it had produced. Higher profitability in the chemicals business increased adjusted EBITDA by a further $2 million. The Specialty Cellulose Pulp segment generated operating earnings of $15 million, unchanged from the prior quarter.
The Forest Products segment generated adjusted EBITDA of $5 million on sales of $108 million for the quarter ended June 2014, compared to adjusted EBITDA of $3 million on sales of $112 million in the prior quarter. Lumber shipments were equal to 84% of capacity versus 83% in the prior quarter. During the quarter, the random length lumber reference price declined by US $24 per mbf while the reference price for stud lumber increased by US $11 per mbf. The gap between the two grades narrowed as expected. Currency was unfavourable as the Canadian dollar averaged US $0.917, a 1.1% increase from US $0.907 in the prior quarter. The net effect decreased sales and adjusted EBITDA by $1 million or $6 per mbf. Costs decreased by $4 million. The spring and summer months are also seasonally lower operating cost periods. The Forest Products segment generated operating earnings of $4 million, compared to operating earnings of $1 million in the prior quarter.
The Paper Pulp segment generated adjusted EBITDA of $3 million on sales of $102 million for the quarter ended June 2014, compared to adjusted EBITDA of $2 million on sales of $62 million in the prior quarter. Market conditions for paper pulp remained relatively weak although demand was stable. Pulp shipments were equal to 117% of capacity as compared to 70% in the prior quarter. Export shipments in the prior quarter were negatively impacted by winter storms that led to delays and congestion at several East Coast ports normally utilized by the Company. The shortfall in shipments was made up in the June 2014 quarter. The benchmark price (delivered China) for bleached eucalyptus kraft (BEK) decreased by US $49 per tonne. However, this decline did not impact US $ high-yield pulp prices. Currency was unfavourable as the Canadian dollar strengthened during the quarter. Average selling prices declined by $12 per tonne, reducing adjusted EBITDA by $2 million. Manufacturing costs decreased by $3 million, primarily due to lower fibre costs. The Paper Pulp segment generated operating earnings of $1 million, compared to an operating loss of $1 million in the prior quarter.
The Paper segment generated adjusted EBITDA of $8 million on sales of $89 million for the quarter ended June 2014, compared to negative adjusted EBITDA of $1 million on sales of $84 million in the prior quarter. The coated bleached board market improved slightly. The shipment to capacity ratio was 96% compared to 94% in the prior quarter. The US $ benchmark price for coated bleached board increased by US $32 per short ton. Currency was negative as the Canadian dollar strengthened during the quarter. Overall, average selling prices for coated bleached board were unchanged quarter-over-quarter. Bleached board costs increased by $1 million, primarily for freight. The newsprint market remained weak with continued decreases in North American demand. The shipment to capacity ratio was 89% compared to 81% in the prior quarter. The US $ benchmark price for newsprint was unchanged at US $605 per tonne. The stronger Canadian dollar resulted in a $7 per tonne decline in newsprint realizations. Manufacturing costs at the Kapuskasing newsprint mill decreased by $10 million, primarily for energy. The prior quarter's costs had been negatively affected by the abnormally cold weather that led to a shortage of natural gas, which in turn caused significant increases to the cost of purchased electricity in the Province of Ontario. The newsprint mill also took six days of unplanned downtime in the prior quarter to mitigate the impact of the higher electricity rates. The Paper segment generated operating earnings of $7 million, compared to an operating loss of $2 million in the prior quarter.
BC Land Sales Initiative
The Company continued with its BC Land Sales Initiative. The objective is to realize up to $70 million in gross proceeds by December 2014. During the June 2014 quarter, the Company completed three land sales for proceeds of $16 million, bringing total sales to date to $39 million. The Company also has an agreement to sell additional parcels for $20 million. The transaction is conditional on the purchaser obtaining adequate financing. There can be no assurance that the transaction will be consummated or that the Company will attain its stated objective.
Temiscaming Cogen Project Update
The Company had previously indicated that the total construction cost of the project would be approximately $235 million. Updated projections now indicate that approximately $255 million will be required to complete the project. The overrun is largely due to higher labour costs. The initial estimate contemplated total labour man-hours of 810,000. To the end of June 2014, labour man-hours had reached 775,000 and projections indicate a further 152,000 man-hours will be required to complete the construction work, for a projected total of 927,000 man-hours. As a significant portion of the additional man-hours relate to higher cost specialized trades, the fully-loaded cost per man-hour is forecasted to be 7% higher than originally planned. The boiler erection is essentially completed and the remaining work will focus on piping, insulation and electrical work. The commissioning of several ancillary systems has begun and will accelerate as the summer progresses. The turbine was originally scheduled to produce contract power by mid-October 2014. This is now expected to occur in late-November 2014, a delay of approximately five weeks.
Outlook
Overall, the June 2014 quarterly results were better than anticipated. After experiencing relatively harsh winter conditions in the March 2014 quarter, all four business segments benefited from higher productivity and lower costs. This more than offset the negative effect of a stronger Canadian dollar and lower selling prices. The Specialty Cellulose segment results improved by $1 million due to lower costs at both pulp mills. The decline in specialty pulp prices was expected as the prior quarter had benefited from customer minimum volume penalties. The current quarter reflected the full impact of the lower contract prices that came into effect in January 2014. Prices for viscose grade also dropped in the most recent quarter. This market remains oversupplied and US $ prices are relatively low. Market conditions should remain at this level for the remainder of the calendar year. The improved results in the Forest Products segment were also driven by lower costs as the spring and summer months are normally lower cost periods for the sawmills. Stud lumber prices increased, closing the gap with random lumber as the latter declined. We anticipate similar results in the coming quarter. The Paper Pulp segment results saw a small improvement in profitability due to lower costs. The segment was able to make up for the weather related shortfall in shipments from the prior quarter. The new South American hardwood paper pulp capacity is impacting prices and we anticipate marginal profitability from this segment until the market absorbs this new capacity. The Paper segment rebounded well from what had been a very challenging March quarter, which was impacted by high prices for natural gas and electricity. The coated bleached board market is stable, but the export market for newsprint, on which North American producers are placing greater reliance, is under pressure.
The Company is looking forward to completing the construction of the Temiscaming, QC, specialty cellulose Cogen project in the coming quarter. While the total estimated cost has increased, the project remains a critical element that will materially improve the mill's cost structure and margins. The Company is placing significant emphasis on training and commissioning in order to ensure a successful start-up of the boiler and turbine. The Company is also looking to complete the BC Land Sales Initiative. To date, $39 million has been realized and the Company will be focused on generating additional land sales in order to reach its $70 million objective.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $1.6 billion, Tembec has 3,500 employees and is listed on the TSX (TMB). The full quarterly report, including the interim Management Discussion and Analysis, the interim financial statements and the accompanying notes for the quarter ended June 28, 2014, can be obtained on Tembec's website at www.tembec.com or on SEDAR at www.sedar.com.
The Company`s financial results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). All financial references are stated in Canadian dollars, unless otherwise noted. All references to quarterly information relate to Tembec's fiscal quarters. Adjusted EBITDA and certain other financial measures utilized in the press release are non-IFRS financial measures. As they have no standardized meaning prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are described in the Definitions section on the last page of the interim Management Discussion and Analysis (MD&A).
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company's periodic filings with securities regulatory authorities, including under the "risk factors" section of the Company's most recent Annual Information Form. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
TEMBEC INC. CONSOLIDATED BALANCE SHEETS |
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(unaudited) (in millions of Canadian dollars) | ||||
June 28, 2014 |
Sept. 28, 2013 (note 2) |
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ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 26 | $ 73 | ||
Restricted cash | 3 | 1 | ||
Trade and other receivables | 174 | 157 | ||
Income tax receivable | 5 | - | ||
Inventories (note 3) | 265 | 237 | ||
Prepaid expenses | 11 | 6 | ||
Assets classified as held for sale | 5 | 7 | ||
489 | 481 | |||
Property, plant and equipment (note 4) | 600 | 496 | ||
Biological assets | 2 | 5 | ||
Employee future benefits | 33 | 24 | ||
Other long-term receivables | 9 | 10 | ||
Deferred tax assets | 6 | 5 | ||
$ 1,139 | $ 1,021 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Operating bank loans (note 5) | $ 87 | $ 57 | ||
Trade, other payables and accrued charges | 211 | 195 | ||
Interest payable | 2 | 10 | ||
Income tax payable | - | 8 | ||
Provisions | 5 | 6 | ||
Current portion of long-term debt (note 6) | 19 | 16 | ||
324 | 292 | |||
Long-term debt (note 6) | 438 | 369 | ||
Provisions | 11 | 12 | ||
Employee future benefits | 125 | 127 | ||
Other long-term liabilities | 2 | 2 | ||
900 | 802 | |||
Shareholders' equity: | ||||
Share capital | 568 | 567 | ||
Deficit | (344) | (354) | ||
Accumulated other comprehensive earnings | 15 | 6 | ||
239 | 219 | |||
$ 1,139 | $ 1,021 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) |
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Quarters and nine months ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars, unless otherwise noted) |
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Quarters | Nine months | |||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
|
Sales | $ 404 | $ 399 | $ 1,120 | $ 1,182 |
Freight and other deductions | 55 | 54 | 143 | 158 |
Lumber export taxes | - | 1 | - | 2 |
Cost of sales (excluding depreciation and amortization) | 302 | 296 | 864 | 892 |
Selling, general and administrative | 15 | 18 | 50 | 56 |
Share-based compensation | 2 | - | 2 | 1 |
Depreciation and amortization | 9 | 9 | 26 | 29 |
Other items (note 8) | (13) | 3 | (21) | 28 |
Operating earnings | 34 | 18 | 56 | 16 |
Interest, foreign exchange and other | 10 | 10 | 28 | 32 |
Exchange loss (gain) on long-term debt | (12) | 11 | 11 | 21 |
Net finance costs (income) (note 9) | (2) | 21 | 39 | 53 |
Earnings (loss) before income taxes | 36 | (3) | 17 | (37) |
Income tax expense (note 10) | 6 | 4 | 13 | 16 |
Net earnings (loss) | $ 30 | $ (7) | $ 4 | $ (53) |
Basic and diluted net earnings (loss) in dollars per share (note 7) |
$ 0.30 |
$ (0.07) |
$ 0.04 | $ (0.53) |
TEMBEC INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) |
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Quarters and nine months ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
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Quarters | Nine months | |||||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
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Net earnings (loss) | $ 30 | $ (7) | $ 4 | $ (53) | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Items that will never be reclassified to earnings (loss): | ||||||
Defined benefit pension plans and other benefit plans (note 11) | (2) | 34 | 7 | 107 | ||
Income tax recovery (expense) | 1 | - | (1) | - | ||
(1) | 34 | 6 | 107 | |||
Items that may be reclassified to earnings (loss) in future periods: | ||||||
Foreign currency translation differences for foreign operations | (9) | 8 | 9 | 12 | ||
Other comprehensive earnings (loss) for the period | (10) | 42 | 15 | 119 | ||
Total comprehensive earnings | $ 20 | $ 35 | $ 19 | $ 66 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |
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Quarters ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
||||||
Quarter ended June 28, 2014 | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of period, March 29, 2014 | $ 567 | $ 24 | $ (373) | $ 218 | ||
Net earnings for the period | - | - | 30 | 30 | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | (2) | (2) | ||
Income tax recovery | - | - | 1 | 1 | ||
Foreign currency translation differences for foreign operations | - | (9) | - | (9) | ||
Issue of warrants (note 7) | 1 | - | - | 1 | ||
Balance - end of period, June 28, 2014 | $ 568 | $ 15 | $ (344) | $ 239 | ||
Quarter ended June 29, 2013 (note 2) | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of period, March 30, 2013, as restated | $ 567 | $ (5) | $ (428) | $ 134 | ||
Net loss for the period | - | - | (7) | (7) | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 34 | 34 | ||
Foreign currency translation differences for foreign operations | - | 8 | - | 8 | ||
Issue of warrants | - | - | - | - | ||
Balance - end of period, June 29, 2013 | $ 567 | $ 3 | $ (401) | $ 169 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |
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Nine months ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
||||||
Nine months ended June 28, 2014 | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of year, September 28, 2013 | $ 567 | $ 6 | $ (354) | $ 219 | ||
Net earnings for the period | - | - | 4 | 4 | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 7 | 7 | ||
Income tax expense | - | - | (1) | (1) | ||
Foreign currency translation differences for foreign operations | - | 9 | - | 9 | ||
Issue of warrants (note 7) | 1 | - | - | 1 | ||
Balance - end of period, June 28, 2014 | $ 568 | $ 15 | $ (344) | $ 239 | ||
Nine months ended June 29, 2013 (note 2) | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of year, September 29, 2012 | $ 564 | $ (9) | $ (455) | $ 100 | ||
Net loss for the period | - | - | (53) | (53) | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 107 | 107 | ||
Foreign currency translation differences for foreign operations | - | 12 | - | 12 | ||
Issue of warrants | 3 | - | - | 3 | ||
Balance - end of period, June 29, 2013 | $ 567 | $ 3 | $ (401) | $ 169 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
||||||
Quarters and nine months ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
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Quarters | Nine months | |||||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
|||
Cash flows from operating activities: | ||||||
Net earnings (loss) | $ 30 | $ (7) | $ 4 | $ (53) | ||
Adjustments for: | ||||||
Depreciation and amortization | 9 | 9 | 26 | 29 | ||
Net finance costs (note 9) | (2) | 21 | 39 | 53 | ||
Income tax expense (note 10) | 6 | 4 | 13 | 16 | ||
Income tax paid | (7) | (5) | (27) | (13) | ||
Excess cash contributions over employee future benefits expense | (3) | (8) | (16) | (25) | ||
Impairment loss (note 8) | - | - | - | 22 | ||
Loss (gain) on sale of assets (note 8) | (14) | 1 | (35) | (1) | ||
Settlement loss on pension plan (note 8) | - | - | 7 | - | ||
Other | - | 1 | 4 | (2) | ||
19 | 16 | 15 | 26 | |||
Changes in non-cash working capital: | ||||||
Trade and other receivables | (22) | 19 | (14) | 23 | ||
Inventories | 46 | 34 | (28) | 3 | ||
Prepaid expenses | (2) | 4 | (4) | (1) | ||
Trade, other payables and accrued charges | (19) | (36) | 16 | (34) | ||
3 | 21 | (30) | (9) | |||
22 | 37 | (15) | 17 | |||
Cash flows from investing activities: | ||||||
Disbursements for property, plant and equipment | (44) | (31) | (119) | (93) | ||
Proceeds from sale of assets (note 8) | 16 | 97 | 40 | 99 | ||
Change in restricted cash | 5 | 1 | (2) | 5 | ||
Other | - | 1 | - | 2 | ||
(23) | 68 | (81) | 13 | |||
Cash flows from financing activities: | ||||||
Change in operating bank loans | 7 | (29) | 30 | (11) | ||
Increase in long-term debt | 23 | 4 | 64 | 28 | ||
Repayments of long-term debt | (3) | (3) | (5) | (5) | ||
Interest paid | (22) | (19) | (43) | (38) | ||
5 | (47) | 46 | (26) | |||
4 | 58 | (50) | 4 | |||
Foreign exchange gain (loss) on cash and cash equivalents held in foreign currencies | (1) | 2 | 3 | 3 | ||
Net increase (decrease) in cash and cash equivalents | 3 | 60 | (47) | 7 | ||
Cash and cash equivalents, beginning of period | 23 | 34 | 73 | 87 | ||
Cash and cash equivalents, end of period | $ 26 | $ 94 | $ 26 | $ 94 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. BUSINESS SEGMENT INFORMATION |
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Quarters ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
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Quarter ended June 28, 2014 | ||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||
Sales: | ||||||||
External | $ 94 | $ 126 | $ 95 | $ 89 | $ - | $ - | $ 404 | |
Internal | 14 | - | 7 | - | 4 | (25) | - | |
108 | 126 | 102 | 89 | 4 | (25) | 404 | ||
Freight and other deductions | 11 | 11 | 21 | 12 | - | - | 55 | |
Lumber export taxes | - | - | - | - | - | - | - | |
Cost of sales | 89 | 91 | 77 | 66 | 4 | (25) | 302 | |
Selling, general and administrative | 3 | 5 | 1 | 3 | 3 | - | 15 | |
Share-based compensation | - | - | - | - | 2 | - | 2 | |
Earnings (loss) before the following (adjusted EBITDA): | 5 | 19 | 3 | 8 | (5) | - | 30 | |
Depreciation and amortization | 1 | 4 | 2 | 1 | 1 | - | 9 | |
Other items (note 8) | - | - | - | - | (13) | - | (13) | |
Operating earnings | $ 4 | $ 15 | $ 1 | $ 7 | $ 7 | $ - | $ 34 | |
Additions to property, plant and equipment | $ 1 | $ 34 | $ 1 | $ 1 | $ - | $ - | $ 37 | |
Total assets | $ 162 | $ 633 | $ 149 | $ 151 | $ 44 | $ - | $ 1,139 | |
Total liabilities | $ 59 | $ 266 | $ 33 | $ 71 | $ 471 | $ - | $ 900 | |
Quarter ended June 29, 2013 (note 2) | ||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||
Sales: | ||||||||
External | $ 95 | $ 120 | $ 98 | $ 86 | $ - | $ - | $ 399 | |
Internal | 15 | - | 8 | - | 2 | (25) | - | |
110 | 120 | 106 | 86 | 2 | (25) | 399 | ||
Freight and other deductions | 10 | 11 | 20 | 13 | - | - | 54 | |
Lumber export taxes | 1 | - | - | - | - | - | 1 | |
Cost of sales | 89 | 85 | 81 | 65 | 1 | (25) | 296 | |
Selling, general and administrative | 3 | 5 | 2 | 2 | 6 | - | 18 | |
Share-based compensation | - | - | - | - | - | - | - | |
Earnings (loss) before the following (adjusted EBITDA): | 7 | 19 | 3 | 6 | (5) | - | 30 | |
Depreciation and amortization | 2 | 4 | 3 | - | - | - | 9 | |
Other items (note 8) | - | - | 1 | - | 2 | - | 3 | |
Operating earnings (loss) | $ 5 | $ 15 | $ (1) | $ 6 | $ (7) | $ - | $ 18 | |
Additions to property, plant and equipment | $ 1 | $ 24 | $ 2 | $ 3 | $ - | $ - | $ 30 | |
Total assets | $ 159 | $ 468 | $ 148 | $ 119 | $ 78 | $ - | $ 972 | |
Total liabilities | $ 58 | $ 210 | $ 41 | $ 123 | $ 371 | $ - | $ 803 |
TEMBEC INC. BUSINESS SEGMENT INFORMATION |
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Nine months ended June 28, 2014 and June 29, 2013 (unaudited) (in millions of Canadian dollars) |
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Nine months ended June 28, 2014 | ||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||
Sales: | ||||||||
External | $ 272 | $ 380 | $ 215 | $ 253 | $ - | $ - | $ 1,120 | |
Internal | 47 | - | 22 | - | 11 | (80) | - | |
319 | 380 | 237 | 253 | 11 | (80) | 1,120 | ||
Freight and other deductions | 31 | 32 | 46 | 34 | - | - | 143 | |
Lumber export taxes | - | - | - | - | - | - | - | |
Cost of sales | 273 | 282 | 181 | 197 | 11 | (80) | 864 | |
Selling, general and administrative | 9 | 15 | 4 | 8 | 14 | - | 50 | |
Share-based compensation | - | - | - | - | 2 | - | 2 | |
Earnings (loss) before the following (adjusted EBITDA): | 6 | 51 | 6 | 14 | (16) | - | 61 | |
Depreciation and amortization | 4 | 11 | 7 | 3 | 1 | - | 26 | |
Other items (note 8) | - | - | - | - | (21) | - | (21) | |
Operating earnings (loss) | $ 2 | $ 40 | $ (1) | $ 11 | $ 4 | $ - | $ 56 | |
Additions to property, plant and equipment | $ 4 | $ 104 | $ 3 | $ 2 | $ - | $ - | $ 113 | |
Total assets | $ 162 | $ 633 | $ 149 | $ 151 | $ 44 | $ - | $ 1,139 | |
Total liabilities | $ 59 | $ 266 | $ 33 | $ 71 | $ 471 | $ - | $ 900 | |
Nine months ended June 29, 2013 (note 2) | ||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||
Sales: | ||||||||
External | $ 266 | $ 343 | $ 322 | $ 251 | $ - | $ - | $ 1,182 | |
Internal | 49 | - | 23 | - | 8 | (80) | - | |
315 | 343 | 345 | 251 | 8 | (80) | 1,182 | ||
Freight and other deductions | 29 | 27 | 67 | 35 | - | - | 158 | |
Lumber export taxes | 2 | - | - | - | - | - | 2 | |
Cost of sales | 259 | 250 | 265 | 191 | 7 | (80) | 892 | |
Selling, general and administrative | 9 | 15 | 6 | 8 | 18 | - | 56 | |
Share-based compensation | - | - | - | - | 1 | - | 1 | |
Earnings (loss) before the following (adjusted EBITDA): | 16 | 51 | 7 | 17 | (18) | - | 73 | |
Depreciation and amortization | 6 | 10 | 11 | 2 | - | - | 29 | |
Other items (note 8) | - | - | 23 | - | 5 | - | 28 | |
Operating earnings (loss) | $ 10 | $ 41 | $ (27) | $ 15 | $ (23) | $ - | $ 16 | |
Additions to property, plant and equipment | $ 3 | $ 72 | $ 8 | $ 6 | $ 1 | $ - | $ 90 | |
Total assets | $ 159 | $ 468 | $ 148 | $ 119 | $ 78 | $ - | $ 972 | |
Total liabilities | $ 58 | $ 210 | $ 41 | $ 123 | $ 371 | $ - | $ 803 |
SOURCE: Tembec
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Investor Contact:
Michel J. Dumas
Executive Vice President, Finance and CFO
Tel: 819 627-4268
E-mail: [email protected]
Media Contact:
Linda Coates
Vice President, Human Resources and Corporate Affairs
Tel.: 416 775-2819
E-mail: [email protected]
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