Mercer International Inc. (Nasdaq: MERC) today reported first
quarter 2023 Operating EBITDA of $27.5 million, net of a $15.2
million non-cash inventory impairment charge, a decrease from
$154.5 million in the first quarter of 2022 and $96.1 million in
the fourth quarter of 2022.
In the first quarter of 2023, net loss was $30.6
million (or $0.46 per share) compared to net income of $88.9
million (or $1.35 per basic share and $1.34 per diluted share) in
the first quarter of 2022 and net income of $20.0 million (or $0.30
per share) in the fourth quarter of 2022.
Mr. Juan Carlos Bueno, the Chief Executive
Officer, stated: “In the first quarter, we achieved strong
operational performance in both our pulp and solid wood segments.
Our results in the quarter were negatively impacted by the
lingering effects of inflation on our key inputs such as fiber and
chemicals. We also experienced lower prices for most of our
products in the quarter. Lower pulp prices were primarily the
result of weak demand out of China, while lumber prices were weak
through the first quarter as high interest rates and uncertain
economic indicators impacted residential construction. Our per unit
fiber costs reached a peak in the first quarter of 2023 due to
reduced wood chip availability for our Canadian pulp mills as a
result of sawmill curtailments and high fiber prices for our German
pulp mills as we work through high cost inventory acquired in late
2022 when there was strong demand for wood as an energy source.
Our pulp segment had strong production in the
first quarter of 2023 with an increase of approximately 7% compared
to the fourth quarter of 2022. Pulp sales volumes decreased 6%
relative to the fourth quarter as a result of weaker demand.
Our Friesau mill had record production in the
first quarter of 2023. Overall our lumber production increased
approximately 14% compared to the fourth quarter of 2022 and our
lumber sales volumes increased approximately 41% due to higher
production and increasing demand as a result of lower prices.
During the quarter we continued our integration
activities at Torgau. In the first quarter of 2023, the synergies
achieved were nominal due to low sales realizations for lumber and
wood residuals, but we continue to expect annual synergies of
approximately $16 million once market conditions improve. Our
integration efforts are ongoing as we work to capture all available
synergies.
Looking forward to the second quarter of 2023,
we currently believe pulp prices will decline, with additional
downward pricing pressure on hardwood pulp as the market adjusts to
new South American supply. We expect lower softwood pulp prices to
be short-lived because of low customer inventory levels. Lumber
demand is expected to see a modest increase as we move into the
residential construction season, which we believe will also create
some upward pricing pressure.
Our Mass Timber business continues to grow its
order book. We are pleased with the rate at which our assembled
sales team is onboarding new customers. This has allowed us to
start building a robust order book, including participation in some
leading and complex cross-laminated timber projects. With one of
the most modern facilities in the world, we are excited about the
future growth potential of this business as cross-laminated timber
has been rapidly gaining market share in the construction
business."
Mr. Bueno concluded: “Although economic
uncertainty and high inflation have negatively impacted our
short-term financial results, we are now experiencing reductions in
input costs such as fiber and chemicals. In addition, we have
strong liquidity and a strong operational foundation that give us
many options to continue to grow and diversify our solid wood and
bio-product revenues. We will continue to manage our liquidity and
working capital prudently and run the Company based on continuous
improvement to enhance efficiency and lower costs.”
______________________*Operating EBITDA is not a
measure of financial performance under accounting principles
generally accepted in the United States ("GAAP") and should not be
considered in isolation or as a substitute for analysis of our
results as reported under GAAP. See page 6 of the financial tables
included in this press release for a reconciliation of net income
(loss) to Operating EBITDA.
Consolidated Financial
Results
|
|
Q1 |
|
|
Q4 |
|
|
Q1 |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
(in
thousands, except per share amounts) |
|
Revenues |
|
$ |
522,666 |
|
|
$ |
583,056 |
|
|
$ |
592,741 |
|
Operating income (loss) |
|
$ |
(20,121 |
) |
|
$ |
47,263 |
|
|
$ |
122,351 |
|
Operating EBITDA |
|
$ |
27,470 |
|
|
$ |
96,128 |
|
|
$ |
154,467 |
|
Net income (loss) |
|
$ |
(30,578 |
) |
|
$ |
20,024 |
|
|
$ |
88,897 |
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.46 |
) |
|
$ |
0.30 |
|
|
$ |
1.35 |
|
Diluted |
|
$ |
(0.46 |
) |
|
$ |
0.30 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated – Three Months Ended March
31, 2023 Compared to Three Months Ended March 31,
2022Total revenues in the first quarter of 2023 decreased
by approximately 12% to $522.7 million from $592.7 million in the
same quarter of 2022 primarily due to lower pulp sales volumes and
lower lumber and energy sales realizations partially offset by the
inclusion of Torgau and higher lumber sales volumes and pulp sales
realizations.
Costs and expenses in the first quarter of 2023
increased by approximately 15% to $542.8 million from $470.4
million in the first quarter of 2022 primarily due to higher fiber
and chemical costs, the inclusion of Torgau and a non-cash
inventory impairment of $15.2 million substantially related to
hardwood inventory at the Peace River mill as a result of lower
hardwood pulp prices and high production and logistics costs. These
increases were partially offset by lower pulp sales volumes, the
positive impact of a stronger dollar on our Canadian dollar and
euro denominated costs and expenses and the receipt of €7.0 million
($7.5 million) in insurance proceeds in the current quarter
relating to the July 2022 fire at our Stendal mill.
In the first quarter of 2023, Operating EBITDA
decreased to $27.5 million from $154.5 million in the same quarter
of 2022 primarily due to higher per unit fiber and chemical costs,
lower lumber and energy sales realizations, lower pulp sales
volumes and the non-cash impairment substantially related to
hardwood inventory partially offset by higher pulp sales
realizations and the positive impact of a stronger
dollar.
Segment ResultsPulp
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in
thousands) |
|
Pulp revenues |
|
$ |
369,656 |
|
|
$ |
446,911 |
|
Energy and chemical revenues |
|
$ |
30,745 |
|
|
$ |
39,020 |
|
Operating income |
|
$ |
12,771 |
|
|
$ |
86,236 |
|
|
|
|
|
|
|
|
|
|
In the first quarter of 2023, pulp segment
operating income decreased to $12.8 million from $86.2 million in
the same quarter of 2022 primarily due to higher per unit fiber and
chemical costs, lower pulp sales volumes and the non-cash inventory
impairment of $15.2 million partially offset by higher pulp sales
realizations and the positive impact of a stronger dollar.
Pulp revenues in the first quarter of 2023
decreased by approximately 17% to $369.7 million from $446.9
million in the same quarter of 2022 due to lower sales volumes
partially offset by higher sales realizations. Total pulp sales
volumes decreased by approximately 21% to 435,973 ADMTs in the
first quarter of 2023 from 555,035 ADMTs in the same quarter of
2022 primarily as a result of lower demand as inflationary
pressures are negatively impacting paper demand. In the first
quarter of 2023, third party industry quoted average list prices
for NBSK pulp increased in Europe and North America and were flat
in China from the same quarter of 2022. Our average NBSK pulp sales
realizations increased by approximately 5% to $849 per ADMT in the
first quarter of 2023 from approximately $812 per ADMT in the same
quarter of 2022. However, prices began to weaken late in the first
quarter of 2023 and have slid further early in the second
quarter.
Costs and expenses in the first quarter of 2023
modestly decreased to $388.0 million from $399.7 million in the
first quarter of 2022 primarily due to lower pulp sales volumes,
the positive impact of a stronger dollar and the receipt of €7.0
million ($7.5 million) in insurance proceeds in the current quarter
relating to the July 2022 fire at our Stendal mill partially offset
by higher per unit fiber and chemical costs. The first quarter of
2023 included a non-cash inventory impairment of $15.2 million
which substantially related to hardwood inventories at the Peace
River mill.
In the first quarter of 2023 per unit fiber
costs increased by approximately 43% from the same quarter of 2022
due to higher per unit fiber costs for all of our pulp mills. Our
German mills had higher per unit fiber costs as a result of strong
demand from other wood consumers such as heating pellet
manufacturers in response to energy shortages caused by the war in
Ukraine. For our Canadian mills, per unit fiber costs increased due
to strong demand in the mills' fiber baskets and for our Celgar
mill a decrease in the availability of wood chips because of
regional sawmill curtailments. We currently expect per unit fiber
costs to decrease in the second quarter of 2023 with a decrease in
Germany due to less demand for wood for energy purposes and in
Canada as a result of increased wood chip availability from
increased sawmill production and realizing the early benefits from
using the Peace River wood room which was completed in the first
quarter of 2023.
Solid Wood
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in
thousands) |
|
Lumber revenues |
|
$ |
60,039 |
|
|
$ |
92,366 |
|
Energy revenues |
|
$ |
5,695 |
|
|
$ |
5,177 |
|
Manufactured products
revenues(1) |
|
$ |
5,804 |
|
|
$ |
3,764 |
|
Pallet revenues |
|
$ |
36,175 |
|
|
$ |
— |
|
Biofuel revenues(2) |
|
$ |
8,135 |
|
|
$ |
— |
|
Wood residuals revenues |
|
$ |
5,166 |
|
|
$ |
3,490 |
|
Operating income (loss) |
|
$ |
(27,069 |
) |
|
$ |
38,301 |
|
___________(1) Manufactured products primarily includes finger
joint lumber and cross-laminated timber. (2) Biofuels
includes pellets and briquettes.
In the first quarter of 2023, operating loss was
$27.1 million compared to operating income of $38.3 million in the
same quarter of 2022 primarily due to lower sales realizations.
Average lumber sales realizations decreased by
approximately 49% to $429 per Mfbm in the first quarter of 2023
from approximately $840 per Mfbm in the same quarter of 2022 as a
result of lower demand in both the U.S. and European markets.
Demand was negatively impacted by concerns over rising interest
rates, inflationary pressures and an uncertain economic
outlook.
Fiber costs were approximately 80% of our lumber
cash production costs in the first quarter of 2023. In the first
quarter of 2023, per unit fiber costs for lumber production
increased by approximately 6% compared to the same quarter of 2022.
Higher per unit fiber costs were due to strong fiber demand in
Germany. We currently expect stable per unit fiber costs in the
second quarter of 2023 .
LiquidityThe following table is
a summary of selected financial information as of the dates
indicated:
|
|
March
31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in
thousands) |
|
Cash and cash
equivalents |
|
$ |
300,560 |
|
|
$ |
354,032 |
|
Working capital |
|
$ |
813,165 |
|
|
$ |
800,114 |
|
Total assets |
|
$ |
2,740,475 |
|
|
$ |
2,725,037 |
|
Long-term liabilities |
|
$ |
1,534,924 |
|
|
$ |
1,508,192 |
|
Total shareholders' equity |
|
$ |
822,873 |
|
|
$ |
838,784 |
|
|
|
|
|
|
|
|
|
|
As of March 31, 2023, we had cash and cash
equivalents of $300.6 million and approximately $255.4 million
available under our revolving credit facilities providing us with
aggregate liquidity of about $556.0 million.
At the end of the first quarter of 2023, our
inventories increased to a high level of $531.4 million. The
increase reflected, among other things, a build up in fiber in
front of the recently completed wood room at our Peace River pulp
mill and overall market conditions. We expect inventory levels to
normalize in the second and coming quarters of 2023.
Quarterly DividendA quarterly
dividend of $0.075 per share will be paid on July 6, 2023 to all
shareholders of record on June 28, 2023. Future dividends will be
subject to Board approval and may be adjusted as business and
industry conditions warrant.
Earnings Release CallIn
conjunction with this release, Mercer International Inc. will host
a conference call, which will be simultaneously broadcast live over
the Internet. Management will host the call, which is scheduled for
May 5, 2023 at 10:00 AM ET. Listeners can access the conference
call live and archived for 30 days over the Internet at
https://edge.media-server.com/mmc/p/6ggi8pip or through a link on
the company's home page at https://www.mercerint.com. Please allow
15 minutes prior to the call to visit the site and download and
install any necessary audio software.
Mercer International Inc. is a global forest
products company with operations in Germany, USA and Canada with
consolidated annual production capacity of 2.3 million tonnes of
pulp, 960 million board feet of lumber, 140 thousand cubic meters
of cross-laminated timber, 17 million pallets and 230,000 metric
tonnes of biofuels. To obtain further information on the company,
please visit its web site at https://www.mercerint.com.
The preceding includes forward looking
statements which involve known and unknown risks and uncertainties
which may cause our actual results in future periods to differ
materially from forecasted results. Words such as "expects",
"anticipates", "are optimistic that", "projects", "intends",
"designed", "will", "believes", "estimates", "may", "could" and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Among those factors which
could cause actual results to differ materially are the following:
the highly cyclical nature of our business, raw material costs, our
level of indebtedness, competition, foreign exchange and interest
rate fluctuations, our use of derivatives, expenditures for capital
projects, environmental regulation and compliance, disruptions to
our production, market conditions and other risk factors listed
from time to time in our SEC reports.
APPROVED BY:Jimmy S.H. LeeExecutive Chairman(604) 684-1099
Juan Carlos BuenoChief Executive Officer (604) 684-1099
-FINANCIAL TABLES FOLLOW-
Summary Financial Highlights
|
|
Q1 |
|
|
Q4 |
|
|
Q1 |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
(in
thousands, except per share amounts) |
|
Pulp segment revenues |
|
$ |
400,401 |
|
|
$ |
463,225 |
|
|
$ |
485,931 |
|
Solid wood segment revenues |
|
|
121,014 |
|
|
|
118,410 |
|
|
|
104,797 |
|
Corporate and other revenues |
|
|
1,251 |
|
|
|
1,421 |
|
|
|
2,013 |
|
Total revenues |
|
$ |
522,666 |
|
|
$ |
583,056 |
|
|
$ |
592,741 |
|
|
|
|
|
|
|
|
|
|
|
Pulp segment operating income |
|
$ |
12,771 |
|
|
$ |
68,972 |
|
|
$ |
86,236 |
|
Solid wood segment operating income (loss) |
|
|
(27,069 |
) |
|
|
(14,281 |
) |
|
|
38,301 |
|
Corporate and other operating loss |
|
|
(5,823 |
) |
|
|
(7,428 |
) |
|
|
(2,186 |
) |
Total operating income (loss) |
|
$ |
(20,121 |
) |
|
$ |
47,263 |
|
|
$ |
122,351 |
|
|
|
|
|
|
|
|
|
|
|
Pulp segment depreciation and amortization |
|
$ |
27,399 |
|
|
$ |
29,199 |
|
|
$ |
27,684 |
|
Solid wood segment depreciation and amortization |
|
|
19,898 |
|
|
|
19,451 |
|
|
|
4,194 |
|
Corporate and other depreciation and amortization |
|
|
294 |
|
|
|
215 |
|
|
|
238 |
|
Total depreciation and amortization |
|
$ |
47,591 |
|
|
$ |
48,865 |
|
|
$ |
32,116 |
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
|
$ |
27,470 |
|
|
$ |
96,128 |
|
|
$ |
154,467 |
|
Income tax recovery (provision) |
|
$ |
5,356 |
|
|
$ |
(8,608 |
) |
|
$ |
(24,236 |
) |
Net income (loss) |
|
$ |
(30,578 |
) |
|
$ |
20,024 |
|
|
$ |
88,897 |
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.46 |
) |
|
$ |
0.30 |
|
|
$ |
1.35 |
|
Diluted |
|
$ |
(0.46 |
) |
|
$ |
0.30 |
|
|
$ |
1.34 |
|
Common shares outstanding at period end |
|
|
66,421 |
|
|
|
66,167 |
|
|
|
66,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Operating Highlights
|
|
Q1 |
|
|
Q4 |
|
|
Q1 |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Pulp Segment |
|
|
|
|
|
|
|
|
|
Pulp production ('000 ADMTs) |
|
|
|
|
|
|
|
|
|
NBSK |
|
|
430.0 |
|
|
|
390.9 |
|
|
|
435.5 |
|
NBHK |
|
|
72.3 |
|
|
|
80.6 |
|
|
|
56.8 |
|
Annual maintenance downtime
('000 ADMTs) |
|
|
13.5 |
|
|
|
39.5 |
|
|
|
— |
|
Annual maintenance downtime
(days) |
|
|
10 |
|
|
|
21 |
|
|
|
— |
|
Pulp sales ('000 ADMTs) |
|
|
|
|
|
|
|
|
|
NBSK |
|
|
378.6 |
|
|
|
393.4 |
|
|
|
505.1 |
|
NBHK |
|
|
57.4 |
|
|
|
72.0 |
|
|
|
49.9 |
|
Average NBSK pulp prices
($/ADMT)(1) |
|
|
|
|
|
|
|
|
|
Europe |
|
|
1,377 |
|
|
|
1,442 |
|
|
|
1,330 |
|
China |
|
|
891 |
|
|
|
920 |
|
|
|
899 |
|
North America |
|
|
1,675 |
|
|
|
1,745 |
|
|
|
1,527 |
|
Average NBHK pulp prices
($/ADMT)(1) |
|
|
|
|
|
|
|
|
|
China |
|
|
710 |
|
|
|
837 |
|
|
|
668 |
|
North America |
|
|
1,523 |
|
|
|
1,608 |
|
|
|
1,312 |
|
Average pulp sales realizations
($/ADMT)(2) |
|
|
|
|
|
|
|
|
|
NBSK |
|
|
849 |
|
|
|
913 |
|
|
|
812 |
|
NBHK |
|
|
809 |
|
|
|
896 |
|
|
|
695 |
|
Energy production ('000
MWh)(3) |
|
|
534.6 |
|
|
|
515.8 |
|
|
|
531.5 |
|
Energy sales ('000 MWh)(3) |
|
|
196.9 |
|
|
|
183.4 |
|
|
|
194.7 |
|
Average energy sales realizations
($/MWh)(3) |
|
|
122 |
|
(4) |
|
156 |
|
(4) |
|
186 |
|
Solid Wood
Segment |
|
|
|
|
|
|
|
|
|
Lumber |
|
|
|
|
|
|
|
|
|
Production (MMfbm) |
|
|
134.0 |
|
|
|
117.3 |
|
|
|
115.6 |
|
Sales (MMfbm) |
|
|
139.9 |
|
|
|
99.2 |
|
|
|
109.9 |
|
Average sales realizations ($/Mfbm) |
|
|
429 |
|
|
|
454 |
|
|
|
840 |
|
Energy |
|
|
|
|
|
|
|
|
|
Production and sales ('000 MWh) |
|
|
40.5 |
|
|
|
39.0 |
|
|
|
24.5 |
|
Average sales realizations ($/MWh) |
|
|
141 |
|
(4) |
|
159 |
|
(4) |
|
211 |
|
Manufactured products(5) |
|
|
|
|
|
|
|
|
|
Production ('000 cubic meters) |
|
|
0.8 |
|
|
|
8.3 |
|
|
|
5.5 |
|
Sales ('000 cubic meters) |
|
|
4.3 |
|
|
|
6.1 |
|
|
|
5.6 |
|
Average sales realizations ($/cubic meters) |
|
|
666 |
|
|
|
561 |
|
|
|
671 |
|
Pallets |
|
|
|
|
|
|
|
|
|
Production ('000 units) |
|
|
2,880.2 |
|
|
|
2,568.4 |
|
|
|
— |
|
Sales ('000 units) |
|
|
2,942.4 |
|
|
|
2,646.3 |
|
|
|
— |
|
Average sales realizations ($/unit) |
|
|
12 |
|
|
|
14 |
|
|
|
— |
|
Biofuels(6) |
|
|
|
|
|
|
|
|
|
Production ('000 tonnes) |
|
|
32.6 |
|
|
|
45.7 |
|
|
|
— |
|
Sales ('000 tonnes) |
|
|
25.8 |
|
|
|
49.8 |
|
|
|
— |
|
Average realizations ($/tonne) |
|
|
315 |
|
|
|
355 |
|
|
|
— |
|
Average Spot Currency
Exchange Rates |
|
|
|
|
|
|
|
|
|
$ / €(7) |
|
|
1.0730 |
|
|
|
1.0218 |
|
|
|
1.1216 |
|
$ / C$(7) |
|
|
0.7393 |
|
|
|
0.7366 |
|
|
|
0.7897 |
|
__________(1) Source: RISI pricing report.
Europe and North America are list prices. China are net prices
which include discounts, allowances and rebates. (2)
Sales realizations after customer discounts, rebates and other
selling concessions. Incorporates the effect of pulp price
variations occurring between the order and shipment dates. (3) Does
not include our 50% joint venture interest in the Cariboo mill,
which is accounted for using the equity method. (4) Energy sales
realizations are net of the German energy windfall tax implemented
by the German government in December 2022. The German energy
windfall tax for the pulp segment was $1.1 million for Q1 2023 and
$6.7 million for Q4 2022. The German energy windfall tax for the
solid wood segment was $nil million for Q1 2023 and $1.1 million
for Q4 2022. (5) Manufactured products includes finger joint lumber
and cross-laminated timber. (6) Biofuels includes pellets and
briquettes. (7) Average Federal Reserve Bank of New York Noon
Buying Rates over the reporting period.
|
MERCER INTERNATIONAL INC. |
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except per share data) |
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Revenues |
|
$ |
522,666 |
|
|
$ |
592,741 |
|
Costs and expenses |
|
|
|
|
|
|
Cost of sales, excluding depreciation and amortization |
|
|
461,338 |
|
|
|
416,095 |
|
Cost of sales depreciation and amortization |
|
|
47,498 |
|
|
|
32,097 |
|
Selling, general and administrative expenses |
|
|
33,951 |
|
|
|
22,198 |
|
Operating income (loss) |
|
|
(20,121 |
) |
|
|
122,351 |
|
Other income (expenses) |
|
|
|
|
|
|
Interest expense |
|
|
(19,047 |
) |
|
|
(17,464 |
) |
Other income |
|
|
3,234 |
|
|
|
8,246 |
|
Total other expenses, net |
|
|
(15,813 |
) |
|
|
(9,218 |
) |
Income (loss) before income
taxes |
|
|
(35,934 |
) |
|
|
113,133 |
|
Income tax recovery
(provision) |
|
|
5,356 |
|
|
|
(24,236 |
) |
Net income (loss) |
|
$ |
(30,578 |
) |
|
$ |
88,897 |
|
Net income (loss) per common
share |
|
|
|
|
|
|
Basic |
|
$ |
(0.46 |
) |
|
$ |
1.35 |
|
Diluted |
|
$ |
(0.46 |
) |
|
$ |
1.34 |
|
Dividends declared per common
share |
|
$ |
0.0750 |
|
|
$ |
0.0750 |
|
|
|
MERCER INTERNATIONAL INC. |
|
INTERIM CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
(In thousands, except share and per share
data) |
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
300,560 |
|
|
$ |
354,032 |
|
Accounts receivable, net |
|
|
345,193 |
|
|
|
351,993 |
|
Inventories |
|
|
531,439 |
|
|
|
450,470 |
|
Prepaid expenses and other |
|
|
18,651 |
|
|
|
21,680 |
|
Total current assets |
|
|
1,195,843 |
|
|
|
1,178,175 |
|
Property, plant and equipment, net |
|
|
1,348,563 |
|
|
|
1,341,322 |
|
Investment in joint ventures |
|
|
45,466 |
|
|
|
45,635 |
|
Amortizable intangible assets, net |
|
|
52,369 |
|
|
|
61,497 |
|
Goodwill |
|
|
34,821 |
|
|
|
30,937 |
|
Operating lease right-of-use assets |
|
|
15,230 |
|
|
|
15,049 |
|
Pension asset |
|
|
3,782 |
|
|
|
4,397 |
|
Other long-term assets |
|
|
44,401 |
|
|
|
48,025 |
|
Total assets |
|
$ |
2,740,475 |
|
|
$ |
2,725,037 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and other |
|
$ |
381,923 |
|
|
$ |
377,306 |
|
Pension and other post-retirement benefit obligations |
|
|
755 |
|
|
|
755 |
|
Total current liabilities |
|
|
382,678 |
|
|
|
378,061 |
|
Long-term debt |
|
|
1,378,531 |
|
|
|
1,346,508 |
|
Pension and other post-retirement benefit obligations |
|
|
11,426 |
|
|
|
12,178 |
|
Operating lease liabilities |
|
|
9,501 |
|
|
|
9,475 |
|
Other long-term liabilities |
|
|
14,170 |
|
|
|
14,072 |
|
Deferred income tax |
|
|
121,296 |
|
|
|
125,959 |
|
Total liabilities |
|
|
1,917,602 |
|
|
|
1,886,253 |
|
Shareholders’ equity |
|
|
|
|
|
|
Common shares $1 par value; 200,000,000 authorized; 66,421,000
issued and outstanding (2022 – 66,167,000) |
|
|
66,386 |
|
|
|
66,132 |
|
Additional paid-in capital |
|
|
355,467 |
|
|
|
354,495 |
|
Retained earnings |
|
|
562,559 |
|
|
|
598,119 |
|
Accumulated other comprehensive loss |
|
|
(161,539 |
) |
|
|
(179,962 |
) |
Total shareholders’
equity |
|
|
822,873 |
|
|
|
838,784 |
|
Total liabilities and
shareholders’ equity |
|
$ |
2,740,475 |
|
|
$ |
2,725,037 |
|
|
|
MERCER INTERNATIONAL INC. |
|
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from (used in)
operating activities |
|
|
|
|
|
|
Net income (loss) |
|
$ |
(30,578 |
) |
|
$ |
88,897 |
|
Adjustments to reconcile net income (loss) to cash flows from
operating activities |
|
|
|
|
|
|
Depreciation and amortization |
|
|
47,591 |
|
|
|
32,116 |
|
Deferred income tax provision (recovery) |
|
|
(9,944 |
) |
|
|
8,383 |
|
Inventory impairment |
|
|
15,200 |
|
|
|
— |
|
Defined benefit pension plans and other post-retirement benefit
plan expense |
|
|
446 |
|
|
|
438 |
|
Stock compensation expense |
|
|
1,226 |
|
|
|
949 |
|
Foreign exchange transaction losses (gains) |
|
|
270 |
|
|
|
(3,828 |
) |
Other |
|
|
(1,149 |
) |
|
|
(801 |
) |
Defined benefit pension plans and
other post-retirement benefit plan contributions |
|
|
(247 |
) |
|
|
(1,194 |
) |
Changes in working capital |
|
|
|
|
|
|
Accounts receivable |
|
|
11,342 |
|
|
|
(52,127 |
) |
Inventories |
|
|
(86,434 |
) |
|
|
(1,725 |
) |
Accounts payable and accrued expenses |
|
|
309 |
|
|
|
(567 |
) |
Other |
|
|
2,318 |
|
|
|
(1,731 |
) |
Net cash from (used in) operating activities |
|
|
(49,650 |
) |
|
|
68,810 |
|
Cash flows from (used in)
investing activities |
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(33,429 |
) |
|
|
(33,293 |
) |
Property insurance proceeds |
|
|
— |
|
|
|
6,410 |
|
Purchase of amortizable intangible assets |
|
|
(16 |
) |
|
|
(60 |
) |
Other |
|
|
821 |
|
|
|
153 |
|
Net cash from (used in) investing activities |
|
|
(32,624 |
) |
|
|
(26,790 |
) |
Cash flows from (used in)
financing activities |
|
|
|
|
|
|
Proceeds from revolving credit facilities, net |
|
|
30,102 |
|
|
|
30,504 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,184 |
) |
Proceeds from government grants |
|
|
— |
|
|
|
1,067 |
|
Payment of finance lease obligations |
|
|
(1,889 |
) |
|
|
(4,935 |
) |
Other |
|
|
(114 |
) |
|
|
(843 |
) |
Net cash from (used in) financing activities |
|
|
28,099 |
|
|
|
24,609 |
|
Effect of exchange rate changes
on cash and cash equivalents |
|
|
703 |
|
|
|
(1,534 |
) |
Net increase (decrease) in cash
and cash equivalents |
|
|
(53,472 |
) |
|
|
65,095 |
|
Cash and cash equivalents,
beginning of period |
|
|
354,032 |
|
|
|
345,610 |
|
Cash and cash equivalents, end of
period |
|
$ |
300,560 |
|
|
$ |
410,705 |
|
|
|
MERCER INTERNATIONAL
INC.COMPUTATION OF OPERATING
EBITDA(Unaudited)(In
thousands)
Operating EBITDA is defined as operating income
(loss) plus depreciation and amortization and non-recurring capital
asset impairment charges. Management uses Operating EBITDA as a
benchmark measurement of its own operating results, and as a
benchmark relative to its competitors. Management considers it to
be a meaningful supplement to operating income (loss) as a
performance measure primarily because depreciation expense and
non-recurring capital asset impairment charges are not an actual
cash cost, and depreciation expense varies widely from company to
company in a manner that management considers largely independent
of the underlying cost efficiency of our operating facilities. In
addition, we believe Operating EBITDA is commonly used by
securities analysts, investors and other interested parties to
evaluate our financial performance.
Operating EBITDA does not reflect the impact of
a number of items that affect our net income (loss), including
financing costs and the effect of derivative instruments. Operating
EBITDA is not a measure of financial performance under GAAP, and
should not be considered as an alternative to net income (loss) or
operating income (loss) as a measure of performance, nor as an
alternative to net cash from (used in) operating activities as a
measure of liquidity. The following tables set forth the net income
(loss) to Operating EBITDA:
|
|
Q1 |
|
|
Q4 |
|
|
Q1 |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Net income
(loss) |
|
$ |
(30,578 |
) |
|
$ |
20,024 |
|
|
$ |
88,897 |
|
Income tax provision (recovery) |
|
|
(5,356 |
) |
|
|
8,608 |
|
|
|
24,236 |
|
Interest expense |
|
|
19,047 |
|
|
|
18,768 |
|
|
|
17,464 |
|
Other income |
|
|
(3,234 |
) |
|
|
(137 |
) |
|
|
(8,246 |
) |
Operating income (loss) |
|
|
(20,121 |
) |
|
|
47,263 |
|
|
|
122,351 |
|
Add: Depreciation and amortization |
|
|
47,591 |
|
|
|
48,865 |
|
|
|
32,116 |
|
Operating EBITDA |
|
$ |
27,470 |
|
|
$ |
96,128 |
|
|
$ |
154,467 |
|
Mercer (NASDAQ:MERC)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Mercer (NASDAQ:MERC)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024