[April 28, 2016] |
|
Domtar Corporation Reports Preliminary First Quarter 2016 Financial Results
Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of
$4 million ($0.06 per share) for the first quarter of 2016 compared to
net earnings of $57 million ($0.91 per share) for the fourth quarter of
2015 and net earnings of $36 million ($0.56 per share) for the first
quarter of 2015. Sales for the first quarter of 2016 were $1.3 billion.
Excluding items listed below, the Company had earnings before items1
of $22 million ($0.35 per share) for the first quarter of 2016 compared
to earnings before items1 of $70 million ($1.11 per share)
for the fourth quarter of 2015 and earnings before items1 of
$48 million ($0.75 per share) for the first quarter of 2015.
First quarter 2016 items:
-
Closure and restructuring costs of $2 million ($2 million after tax);
and
-
Impairment of property, plant & equipment of $21 million ($16 million
after tax).
Fourth quarter 2015 items:
-
Closure and restructuring costs of $1 million ($1 million after tax);
and
-
Impairment of property, plant & equipment of $20 million ($12 million
after tax).
First quarter 2015 items:
-
Closure and restructuring costs of $1 million ($1 million after tax);
-
Gain on disposal of property, plant and equipment of $1 million ($1
million after tax); and
-
Impairment of property, plant & equipment of $19 million ($12 million
after tax).
"Although our teams were very agile and executed well on things under
our control, our results in pulp and paper were negatively impacted by
unexpected costs during the extended maintenance outages," said John D.
Williams, President and Chief Executive Officer. "Given the timing of
maintenance activity and costs related to the fluff pulp conversion, our
first half results are expected to remain subdued before significantly
improving in the second half as the benefits from the Ashdown
conversion, lower maintenance and higher prices accrue."
Mr. Williams added, "We delivered strong year over year EBITDA growth in
Personal Care with procurement initiatives and manufacturing cost
savings driving the majority of the increase. During the quarter, we
began delivering on our new sales growth wins including the successful
launch of a partner brand and the ramping up of volume for a major
account. We are on track to realize the top-line benefits of the new
customer wins through 2016."
QUARTERLY REVIEW
Operating income before items1 was $41 million in the first
quarter of 2016 compared to an operating income before items1
of $115 million in the fourth quarter of 2015. Depreciation and
amortization totaled $89 million in the first quarter of 2016.
|
|
|
|
|
|
|
|
|
(In millions of dollars)
|
|
1Q 2016
|
|
|
4Q 2015
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
1,287
|
|
|
$
|
1,314
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
Pulp and Paper segment
|
|
|
19
|
|
|
|
86
|
|
Personal Care segment
|
|
|
14
|
|
|
|
16
|
|
Corporate
|
|
|
(15)
|
|
|
|
(8)
|
|
Total
|
|
|
18
|
|
|
|
94
|
|
Operating income before items1
|
|
|
41
|
|
|
|
115
|
|
Depreciation and amortization
|
|
|
89
|
|
|
|
89
|
|
The decrease in operating income before items1 in the first
quarter of 2016 was the result of increased maintenance costs, lower
productivity in pulp and paper, lower volume, higher raw material costs,
lower average selling prices, higher selling, general and administrative
expenses and other costs. These factors were partially offset by
favorable exchange rates and lower freight costs.
When compared to the fourth quarter of 2015, manufactured paper
shipments were down 1.4% and pulp shipments decreased 4.4%. The
shipments-to-production ratio for paper was 100% in the first quarter of
2016, compared to 95% in the fourth quarter of 2015. Paper inventories
remained flat and pulp inventories decreased by 13,000 metric tons when
compared to the fourth quarter of 2015.
LIQUIDITY AND CAPITAL
Cash flow provided from operating activities amounted to $97 million and
capital expenditures were $100 million, resulting in a negative free
cash flow1 of $3 million for the first quarter of 2016.
Domtar's net debt-to-total capitalization ratio1 stood at 30%
at March 31, 2016 and at December 31, 2015.
During the quarter, Domtar repurchased $10 million of common stock under
its stock repurchase program.
OUTLOOK
The second quarter is expected to be affected by seasonally higher
maintenance activity in our pulp and paper business in addition to costs
of approximately $23 million related to the fluff pulp conversion outage
at our Ashdown mill. For the remainder of the year, Domtar paper
shipments are expected to trend with market demand. Recently announced
price increases should positively impact Pulp and Paper. Personal Care
results should benefit from the new customer wins, market growth and
cost savings from the new manufacturing platform. Costs for raw
materials should marginally increase.
EARNINGS CONFERENCE CALL
The Company will hold a conference call today at 10:00 a.m. (ET) to
discuss its first quarter 2016 financial results. Financial analysts are
invited to participate in the call by dialing 1 (800) 499-4035 (toll
free - North America) or 1 (416) 204-9269 (International) at least 10
minutes before start time, while media and other interested individuals
are invited to listen to the live webcast on the Domtar Corporation
website at www.domtar.com.
The Company will release its second quarter 2016 earnings results on
July 28, 2016 before markets open, followed by a conference call at
10:00 a.m. (ET) to discuss results. The date is tentative and will be
confirmed approximately three weeks prior to the official earnings
release date.
About Domtar Domtar is a leading provider of a
wide variety of fiber-based products including communication, specialty
and packaging papers, market pulp and absorbent hygiene products. With
approximately 9,850 employees serving more than 50 countries around the
world, Domtar is driven by a commitment to turn sustainable wood fiber
into useful products that people rely on every day. Domtar's annual
sales are approximately $5.3 billion and its common stock is traded on
the New York and Toronto Stock Exchanges. Domtar's principal executive
office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.
Forward-Looking Statements Statements in this release
about our plans, expectations and future performance, including the
statements by Mr. Williams and those contained under "Outlook," are
"forward-looking statements." Actual results may differ materially from
those suggested by these statements for a number of reasons, including
changes in customer demand and pricing, changes in manufacturing costs,
future acquisitions and divestitures, including facility closings, and
the other reasons identified under "Risk Factors" in our Form 10-K for
2015 as filed with the SEC and as updated by subsequently filed Form
10-Q's. Except to the extent required by law, we expressly disclaim any
obligation to update or revise these forward-looking statements to
reflect new events or circumstances or otherwise.
Domtar Corporation Highlights (In millions of
dollars, unless otherwise noted)
|
|
Three months
|
|
|
Three months
|
|
|
|
ended
|
|
|
ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
Selected Segment Information
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
Pulp and Paper
|
|
|
1,085
|
|
|
|
1,146
|
|
Personal Care
|
|
|
216
|
|
|
|
218
|
|
Total for reportable segments
|
|
|
1,301
|
|
|
|
1,364
|
|
Intersegment sales
|
|
|
(14)
|
|
|
|
(16)
|
|
Consolidated sales
|
|
|
1,287
|
|
|
|
1,348
|
|
Depreciation and amortization and impairment of
property, plant and equipment
|
|
|
|
|
|
|
|
|
Pulp and Paper
|
|
|
73
|
|
|
|
74
|
|
Personal Care
|
|
|
16
|
|
|
|
16
|
|
Total for reportable segments
|
|
|
89
|
|
|
|
90
|
|
Impairment of property, plant and equipment - Pulp and Paper
|
|
|
21
|
|
|
|
19
|
|
|
|
|
|
|
|
Consolidated depreciation and amortization and impairment
of property, plant and equipment
|
|
|
110
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
Pulp and Paper
|
|
|
19
|
|
|
|
75
|
|
Personal Care
|
|
|
14
|
|
|
|
10
|
|
Corporate
|
|
|
(15)
|
|
|
|
(14)
|
|
Consolidated operating income
|
|
|
18
|
|
|
|
71
|
|
Interest expense, net
|
|
|
17
|
|
|
|
26
|
|
Earnings before income taxes
|
|
|
1
|
|
|
|
45
|
|
Income tax (benefit) expense
|
|
|
(3)
|
|
|
|
9
|
|
Net earnings
|
|
|
4
|
|
|
|
36
|
|
Per common share (in dollars)
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.06
|
|
|
|
0.56
|
|
Diluted
|
|
|
0.06
|
|
|
|
0.56
|
|
Weighted average number of common shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
62.7
|
|
|
|
63.8
|
|
Diluted
|
|
|
62.8
|
|
|
|
63.9
|
|
Cash flows provided from operating activities
|
|
|
97
|
|
|
|
127
|
|
Additions to property, plant and equipment
|
|
|
100
|
|
|
|
70
|
|
Domtar Corporation Consolidated Statements of Earnings (In
millions of dollars, unless otherwise noted)
|
|
Three months
|
|
|
Three months
|
|
|
ended
|
|
|
ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
2016
|
|
|
2015
|
|
|
(Unaudited)
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
Sales
|
|
|
1,287
|
|
|
|
1,348
|
Operating expenses
|
|
|
|
|
|
|
|
Cost of sales, excluding depreciation and amortization
|
|
|
1,050
|
|
|
|
1,062
|
Depreciation and amortization
|
|
|
89
|
|
|
|
90
|
Selling, general and administrative
|
|
|
103
|
|
|
|
100
|
Impairment of property, plant and
|
|
|
21
|
|
|
|
19
|
equipment
|
|
|
|
|
|
|
|
Closure and restructuring costs
|
|
|
2
|
|
|
|
1
|
Other operating loss, net
|
|
|
4
|
|
|
|
5
|
|
|
|
1,269
|
|
|
|
1,277
|
Operating income
|
|
|
18
|
|
|
|
71
|
Interest expense, net
|
|
|
17
|
|
|
|
26
|
Earnings before income taxes
|
|
|
1
|
|
|
|
45
|
Income tax (benefit) expense
|
|
|
(3)
|
|
|
|
9
|
Net earnings
|
|
|
4
|
|
|
|
36
|
Per common share (in dollars)
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
|
|
Basic
|
|
|
0.06
|
|
|
|
0.56
|
Diluted
|
|
|
0.06
|
|
|
|
0.56
|
Weighted average number of common
|
|
|
|
|
|
|
|
shares outstanding (millions)
|
|
|
|
|
|
|
|
Basic
|
|
|
62.7
|
|
|
|
63.8
|
Diluted
|
|
|
62.8
|
|
|
|
63.9
|
Domtar Corporation Consolidated Balance Sheets at (In
millions of dollars)
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
$
|
|
|
$
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
97
|
|
|
|
126
|
|
Receivables, less allowances of $7 and $6
|
|
|
642
|
|
|
|
627
|
|
Inventories
|
|
|
779
|
|
|
|
766
|
|
Prepaid expenses
|
|
|
32
|
|
|
|
21
|
|
Income and other taxes receivable
|
|
|
21
|
|
|
|
14
|
|
Total current assets
|
|
|
1,571
|
|
|
|
1,554
|
|
Property, plant and equipment, net
|
|
|
2,868
|
|
|
|
2,835
|
|
Goodwill
|
|
|
551
|
|
|
|
539
|
|
Intangible assets, net
|
|
|
614
|
|
|
|
601
|
|
Other assets
|
|
|
154
|
|
|
|
125
|
|
Total assets
|
|
|
5,758
|
|
|
|
5,654
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Bank indebtedness
|
|
|
6
|
|
|
|
-
|
|
Trade and other payables
|
|
|
709
|
|
|
|
720
|
|
Income and other taxes payable
|
|
|
21
|
|
|
|
27
|
|
Long-term debt due within one year
|
|
|
41
|
|
|
|
41
|
|
Total current liabilities
|
|
|
777
|
|
|
|
788
|
|
Long-term debt
|
|
|
1,211
|
|
|
|
1,210
|
|
Deferred income taxes and other
|
|
|
677
|
|
|
|
654
|
|
Other liabilities and deferred credits
|
|
|
357
|
|
|
|
350
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
1
|
|
|
|
1
|
|
Additional paid-in capital
|
|
|
1,957
|
|
|
|
1,966
|
|
Retained earnings
|
|
|
1,165
|
|
|
|
1,186
|
|
Accumulated other comprehensive loss
|
|
|
(387
|
)
|
|
|
(501
|
)
|
Total shareholders' equity
|
|
|
2,736
|
|
|
|
2,652
|
|
Total liabilities and shareholders' equity
|
|
|
5,758
|
|
|
|
5,654
|
|
Domtar Corporation Consolidated Statements of Cash Flows (In
millions of dollars)
|
|
For the three months ended
|
|
|
|
March 31, 2016
|
|
|
March 31, 2015
|
|
|
|
(Unaudited)
|
|
|
|
$
|
|
$
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
4
|
|
|
|
36
|
|
Adjustments to reconcile net earnings to cash flows from operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
89
|
|
|
|
90
|
|
Deferred income taxes and tax uncertainties
|
|
|
(3
|
)
|
|
|
(15
|
)
|
Impairment of property, plant and equipment
|
|
|
21
|
|
|
|
19
|
|
Net gains on disposals of property, plant and equipment
|
|
|
-
|
|
|
|
(1
|
)
|
Stock-based compensation expense
|
|
|
1
|
|
|
|
2
|
|
Other
|
|
|
-
|
|
|
|
(1
|
)
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(5
|
)
|
|
|
(44
|
)
|
Inventories
|
|
|
(1
|
)
|
|
|
(12
|
)
|
Prepaid expenses
|
|
|
(1
|
)
|
|
|
2
|
|
Trade and other payables
|
|
|
1
|
|
|
|
(10
|
)
|
Income and other taxes
|
|
|
(9
|
)
|
|
|
55
|
|
Difference between employer pension and other post-retirement
|
|
|
(1
|
)
|
|
|
2
|
|
contributions and pension and other post-retirement expense
|
|
|
|
|
Other assets and other liabilities
|
|
|
1
|
|
|
|
4
|
|
Cash flows provided from operating activities
|
|
|
97
|
|
|
|
127
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(100
|
)
|
|
|
(70
|
)
|
Proceeds from disposals of property, plant and equipment
|
|
|
-
|
|
|
|
1
|
|
Cash flows used for investing activities
|
|
|
(100
|
)
|
|
|
(69
|
)
|
Financing activities
|
|
|
|
|
|
|
|
|
Dividend payments
|
|
|
(25
|
)
|
|
|
(24
|
)
|
Stock repurchase
|
|
|
(10
|
)
|
|
|
(13
|
)
|
Net change in bank indebtedness
|
|
|
7
|
|
|
|
(4
|
)
|
Proceeds from receivables securitization facility
|
|
|
20
|
|
|
|
-
|
|
Repayments of receivables securitization facility
|
|
|
(20
|
)
|
|
|
-
|
|
Repayments of long-term debt
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Other
|
|
|
-
|
|
|
|
1
|
|
Cash flows used for financing activities
|
|
|
(29
|
)
|
|
|
(41
|
)
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(32
|
)
|
|
|
17
|
|
Impact of foreign exchange on cash
|
|
|
3
|
|
|
|
(8
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
126
|
|
|
|
174
|
|
Cash and cash equivalents at end of period
|
|
|
97
|
|
|
|
183
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
|
Net cash payments for:
|
|
|
|
|
|
|
|
|
Interest
|
|
|
20
|
|
|
|
27
|
|
Income taxes paid (refund), net
|
|
|
6
|
|
|
|
(23
|
)
|
Domtar Corporation Quarterly Reconciliation of Non-GAAP
Financial Measures (In millions of dollars, unless otherwise
noted)
The following table sets forth certain non-U.S. generally accepted
accounting principles ("GAAP") financial metrics identified in bold as
"Earnings before items", "Earnings before items per diluted share",
"EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before
items", "Free cash flow", "Net debt" and "Net debt-to-total
capitalization". Management believes that the financial metrics
presented are frequently used by investors and are useful to evaluate
our ability to service debt and our overall credit profile. Management
believes these metrics are also useful to measure the operating
performance and benchmark with peers within the industry. These metrics
are presented as a complement to enhance the understanding of operating
results but not in substitution for GAAP results.
The Company calculates "Earnings before items" and "EBITDA before items"
by excluding the after-tax (pre-tax) effect of items considered by
management as not reflecting our current operations. Management uses
these measures, as well as EBITDA and Free cash flow, to focus on
ongoing operations and believes that it is useful to investors because
it enables them to perform meaningful comparisons between periods.
Domtar believes that using this information along with Net earnings
provides for a more complete analysis of the results of operations. Net
earnings and Cash flows provided from operating activities are the most
directly comparable GAAP measures.
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Q1
|
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
YTD
|
|
Reconciliation of "Earnings before items" to Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
($)
|
|
|
4
|
|
|
|
36
|
|
|
|
38
|
|
|
|
11
|
|
|
|
57
|
|
|
|
142
|
|
|
(+)
|
Impairment of property, plant and equipment
|
|
($)
|
|
|
16
|
|
|
|
12
|
|
|
|
11
|
|
|
|
12
|
|
|
|
12
|
|
|
|
47
|
|
|
(+)
|
Closure and restructuring costs
|
|
($)
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
4
|
|
|
(-)
|
Net gains on disposals of property, plant and
|
|
($)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(+)
|
Debt refinancing costs
|
|
($)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
30
|
|
|
(=)
|
Earnings before items
|
|
($)
|
|
|
22
|
|
|
|
48
|
|
|
|
39
|
|
|
|
54
|
|
|
|
70
|
|
|
|
211
|
|
|
(/)
|
Weighted avg. number of common shares outstanding (diluted)
|
|
(millions)
|
|
|
62.8
|
|
|
|
63.9
|
|
|
|
63.7
|
|
|
|
63
|
|
|
|
62.9
|
|
|
|
63.4
|
|
|
(=)
|
Earnings before items per diluted share
|
|
($)
|
|
|
0.35
|
|
|
|
0.75
|
|
|
|
0.61
|
|
|
|
0.86
|
|
|
|
1.11
|
|
|
|
3.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of "EBITDA" and "EBITDA before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
items" to Net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
($)
|
|
|
4
|
|
|
|
36
|
|
|
|
38
|
|
|
|
11
|
|
|
|
57
|
|
|
|
142
|
|
|
(+)
|
Income tax (benefit) expense
|
|
($)
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
(1
|
)
|
|
|
(14
|
)
|
|
|
20
|
|
|
|
14
|
|
|
(+)
|
Interest expense, net
|
|
($)
|
|
|
17
|
|
|
|
26
|
|
|
|
25
|
|
|
|
64
|
|
|
|
17
|
|
|
|
132
|
|
|
(=)
|
Operating income
|
|
($)
|
|
|
18
|
|
|
|
71
|
|
|
|
62
|
|
|
|
61
|
|
|
|
94
|
|
|
|
288
|
|
|
(+)
|
Depreciation and amortization
|
|
($)
|
|
|
89
|
|
|
|
90
|
|
|
|
91
|
|
|
|
89
|
|
|
|
89
|
|
|
|
359
|
|
|
(+)
|
Impairment of property, plant and equipment
|
|
($)
|
|
|
21
|
|
|
|
19
|
|
|
|
18
|
|
|
|
20
|
|
|
|
20
|
|
|
|
77
|
|
|
(-)
|
Net gains on disposals of property, plant
|
|
($)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(=)
|
EBITDA
|
|
($)
|
|
|
128
|
|
|
|
179
|
|
|
|
157
|
|
|
|
170
|
|
|
|
203
|
|
|
|
709
|
|
|
(/)
|
Sales
|
|
($)
|
|
|
1,287
|
|
|
|
1,348
|
|
|
|
1,310
|
|
|
|
1,292
|
|
|
|
1,314
|
|
|
|
5,264
|
|
|
(=)
|
EBITDA margin
|
|
(%)
|
|
|
10
|
%
|
|
|
13
|
%
|
|
|
12
|
%
|
|
|
13
|
%
|
|
|
15
|
%
|
|
|
13
|
%
|
|
|
EBITDA
|
|
($)
|
|
|
128
|
|
|
|
179
|
|
|
|
157
|
|
|
|
170
|
|
|
|
203
|
|
|
|
709
|
|
|
(+)
|
Closure and restructuring costs
|
|
($)
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
4
|
|
|
(=)
|
EBITDA before items
|
|
($)
|
|
|
130
|
|
|
|
180
|
|
|
|
158
|
|
|
|
171
|
|
|
|
204
|
|
|
|
713
|
|
|
(/)
|
Sales
|
|
($)
|
|
|
1,287
|
|
|
|
1,348
|
|
|
|
1,310
|
|
|
|
1,292
|
|
|
|
1,314
|
|
|
|
5,264
|
|
|
(=)
|
EBITDA margin before items
|
|
(%)
|
|
|
10
|
%
|
|
|
13
|
%
|
|
|
12
|
%
|
|
|
13
|
%
|
|
|
16
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of "Free cash flow" to Cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided from operating activities
|
|
($)
|
|
|
97
|
|
|
|
127
|
|
|
|
122
|
|
|
|
67
|
|
|
|
137
|
|
|
|
453
|
|
|
(-)
|
Additions to property, plant and equipment
|
|
($)
|
|
|
(100
|
)
|
|
|
(70
|
)
|
|
|
(66
|
)
|
|
|
(66
|
)
|
|
|
(87
|
)
|
|
|
(289
|
)
|
|
(=)
|
Free cash flow
|
|
($)
|
|
|
(3
|
)
|
|
|
57
|
|
|
|
56
|
|
|
|
1
|
|
|
|
50
|
|
|
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Net debt-to-total capitalization" computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank indebtedness
|
|
($)
|
|
|
6
|
|
|
|
6
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
|
|
|
(+)
|
Long-term debt due within one year
|
|
($)
|
|
|
41
|
|
|
|
169
|
|
|
|
169
|
|
|
|
42
|
|
|
|
41
|
|
|
|
|
|
|
(+)
|
Long-term debt
|
|
($)
|
|
|
1,211
|
|
|
|
1,170
|
|
|
|
1,169
|
|
|
|
1,236
|
|
|
|
1,210
|
|
|
|
|
|
|
(=)
|
Debt
|
|
($)
|
|
|
1,258
|
|
|
|
1,345
|
|
|
|
1,339
|
|
|
|
1,279
|
|
|
|
1,251
|
|
|
|
|
|
|
(-)
|
Cash and cash equivalents
|
|
($)
|
|
|
(97
|
)
|
|
|
(183
|
)
|
|
|
(207
|
)
|
|
|
(128
|
)
|
|
|
(126
|
)
|
|
|
|
|
|
(=)
|
Net debt
|
|
($)
|
|
|
1,161
|
|
|
|
1,162
|
|
|
|
1,132
|
|
|
|
1,151
|
|
|
|
1,125
|
|
|
|
|
|
|
(+)
|
Shareholders' equity
|
|
($)
|
|
|
2,736
|
|
|
|
2,710
|
|
|
|
2,761
|
|
|
|
2,659
|
|
|
|
2,652
|
|
|
|
|
|
|
(=)
|
Total capitalization
|
|
($)
|
|
|
3,897
|
|
|
|
3,872
|
|
|
|
3,893
|
|
|
|
3,810
|
|
|
|
3,777
|
|
|
|
|
|
|
|
Net debt
|
|
($)
|
|
|
1,161
|
|
|
|
1,162
|
|
|
|
1,132
|
|
|
|
1,151
|
|
|
|
1,125
|
|
|
|
|
|
|
(/)
|
Total capitalization
|
|
($)
|
|
|
3,897
|
|
|
|
3,872
|
|
|
|
3,893
|
|
|
|
3,810
|
|
|
|
3,777
|
|
|
|
|
|
|
(=)
|
Net debt-to-total capitalization
|
|
(%)
|
|
|
30
|
%
|
|
|
30
|
%
|
|
|
29
|
%
|
|
|
30
|
%
|
|
|
30
|
%
|
|
|
|
|
"Earnings before items", "Earnings before items per diluted share",
"EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before
items", "Free cash flow", "Net debt" and "Net debt-to-total
capitalization" have no standardized meaning prescribed by GAAP and are
not necessarily comparable to similar measures presented by other
companies and therefore should not be considered in isolation or as a
substitute for Net earnings, Operating income or any other earnings
statement, cash flow statement or balance sheet financial information
prepared in accordance with GAAP. It is important for readers to
understand that certain items may be presented in different lines by
different companies on their financial statements thereby leading to
different measures for different companies.
Domtar Corporation Quarterly Reconciliation of Non-GAAP
Financial Measures - By Segment 2016 (In millions of dollars,
unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted
accounting principles ("GAAP"), financial metrics identified in bold as
"Operating income (loss) before items", "EBITDA before items" and
"EBITDA margin before items" by reportable segment. Management believes
that the financial metrics presented are frequently used by investors
and are useful to measure the operating performance and benchmark with
peers within the industry. These metrics are presented as a complement
to enhance the understanding of operating results but not in
substitution for GAAP results.
The Company calculates the segmented "Operating income (loss) before
items" by excluding the pre-tax effect of items considered by management
as not reflecting our ongoing operations. Management uses these measures
to focus on ongoing operations and believes that it is useful to
investors because it enables them to perform meaningful comparisons
between periods. Domtar believes that using this information along with
Operating income (loss) provides for a more complete analysis of the
results of operations. Operating income (loss) by segment is the most
directly comparable GAAP measure.
|
|
|
|
|
|
Pulp and Paper
|
|
Personal Care
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
Q1'16
|
|
Q2'16
|
|
Q3'16
|
|
Q4'16
|
|
YTD
|
|
Q1'16
|
|
Q2'16
|
|
Q3'16
|
|
Q4'16
|
|
YTD
|
|
Q1'16
|
|
Q2'16
|
|
Q3'16
|
|
Q4'16
|
|
YTD
|
|
Q1'16
|
|
Q2'16
|
|
Q3'16
|
|
Q4'16
|
|
YTD
|
Reconciliation of Operating income (loss) to
"Operating income (loss) before items"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
($)
|
|
19
|
|
-
|
|
-
|
|
-
|
|
19
|
|
14
|
|
-
|
|
-
|
|
-
|
|
14
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
18
|
|
-
|
|
-
|
|
-
|
|
18
|
|
(+)
|
Impairment of property, plant and equipment
|
|
($)
|
|
21
|
|
-
|
|
-
|
|
-
|
|
21
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
21
|
|
-
|
|
-
|
|
-
|
|
21
|
|
(+)
|
Closure and restructuring costs
|
|
($)
|
|
2
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
2
|
|
(=)
|
Operating income (loss) before items
|
|
($)
|
|
42
|
|
-
|
|
-
|
|
-
|
|
42
|
|
14
|
|
-
|
|
-
|
|
-
|
|
14
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of "Operating income (loss) before
items" to "EBITDA before items"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) before items
|
|
($)
|
|
42
|
|
-
|
|
-
|
|
-
|
|
42
|
|
14
|
|
-
|
|
-
|
|
-
|
|
14
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
|
(+)
|
Depreciation and amortization
|
|
($)
|
|
73
|
|
-
|
|
-
|
|
-
|
|
73
|
|
16
|
|
-
|
|
-
|
|
-
|
|
16
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
89
|
|
-
|
|
-
|
|
-
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(=)
|
EBITDA before items
|
|
($)
|
|
115
|
|
-
|
|
-
|
|
-
|
|
115
|
|
30
|
|
-
|
|
-
|
|
-
|
|
30
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
130
|
|
-
|
|
-
|
|
-
|
|
130
|
|
(/)
|
Sales
|
|
($)
|
|
1,085
|
|
-
|
|
-
|
|
-
|
|
1,085
|
|
216
|
|
-
|
|
-
|
|
-
|
|
216
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,301
|
|
-
|
|
-
|
|
-
|
|
1,301
|
|
(=)
|
EBITDA margin before items
|
|
(%)
|
|
11%
|
|
-
|
|
-
|
|
-
|
|
11%
|
|
14%
|
|
-
|
|
-
|
|
-
|
|
14%
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10%
|
|
-
|
|
-
|
|
-
|
|
10%
|
"Operating income (loss) before items", "EBITDA before items" and
"EBITDA margin before items" have no standardized meaning prescribed by
GAAP and are not necessarily comparable to similar measures presented by
other companies and therefore should not be considered in isolation or
as a substitute for Operating income (loss) or any other earnings
statement, cash flow statement or balance sheet financial information
prepared in accordance with GAAP. It is important for readers to
understand that certain items may be presented in different lines by
different companies on their financial statements thereby leading to
different measures for different companies.
Domtar Corporation Quarterly Reconciliation of Non-GAAP
Financial Measures - By Segment 2015 (In millions of dollars,
unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted
accounting principles ("GAAP"), financial metrics identified in bold as
"Operating income (loss) before items", "EBITDA before items" and
"EBITDA margin before items" by reportable segment. Management believes
that the financial metrics presented are frequently used by investors
and are useful to measure the operating performance and benchmark with
peers within the industry. These metrics are presented as a complement
to enhance the understanding of operating results but not in
substitution for GAAP results.
The Company calculates the segmented "Operating income (loss) before
items" by excluding the pre-tax effect of items considered by management
as not reflecting our ongoing operations. Management uses these measures
to focus on ongoing operations and believes that it is useful to
investors because it enables them to perform meaningful comparisons
between periods. Domtar believes that using this information along with
Operating income (loss) provides for a more complete analysis of the
results of operations. Operating income (loss) by segment is the most
directly comparable GAAP measure.
|
|
|
|
|
|
Pulp and Paper
|
|
Personal Care
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
Q1'15
|
|
Q2'15
|
|
Q3'15
|
|
Q4'15
|
|
YTD
|
|
Q1'15
|
|
Q2'15
|
|
Q3'15
|
|
Q4'15
|
|
YTD
|
|
Q1'15
|
|
Q2'15
|
|
Q3'15
|
|
Q4'15
|
|
YTD
|
|
Q1'15
|
|
Q2'15
|
|
Q3'15
|
|
Q4'15
|
|
YTD
|
Reconciliation of Operating income (loss) to
"Operating income (loss) before items"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
($)
|
|
75
|
|
55
|
|
54
|
|
86
|
|
270
|
|
10
|
|
17
|
|
18
|
|
16
|
|
61
|
|
(14)
|
|
(10)
|
|
(11)
|
|
(8)
|
|
(43)
|
|
71
|
|
62
|
|
61
|
|
94
|
|
288
|
|
(+)
|
Impairment of property, plant and equipment
|
|
($)
|
|
19
|
|
18
|
|
20
|
|
20
|
|
77
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
19
|
|
18
|
|
20
|
|
20
|
|
77
|
|
(-)
|
Net gains on disposals of property, plant and equipment
|
|
($)
|
|
-
|
|
(14)
|
|
-
|
|
-
|
|
(14)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
(1)
|
|
(14)
|
|
-
|
|
-
|
|
(15)
|
|
(+)
|
Closure and restructuring costs
|
|
($)
|
|
-
|
|
1
|
|
1
|
|
1
|
|
3
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
1
|
|
1
|
|
4
|
|
(=)
|
Operating income (loss) before items
|
|
($)
|
|
94
|
|
60
|
|
75
|
|
107
|
|
336
|
|
11
|
|
17
|
|
18
|
|
16
|
|
62
|
|
(15)
|
|
(10)
|
|
(11)
|
|
(8)
|
|
(44)
|
|
90
|
|
67
|
|
82
|
|
115
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of "Operating income (loss) before
items" to "EBITDA before items"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) before items
|
|
($)
|
|
94
|
|
60
|
|
75
|
|
107
|
|
336
|
|
11
|
|
17
|
|
18
|
|
16
|
|
62
|
|
(15)
|
|
(10)
|
|
(11)
|
|
(8)
|
|
(44)
|
|
90
|
|
67
|
|
82
|
|
115
|
|
354
|
|
(+)
|
Depreciation and amortization
|
|
($)
|
|
74
|
|
75
|
|
75
|
|
73
|
|
297
|
|
16
|
|
16
|
|
14
|
|
16
|
|
62
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
90
|
|
91
|
|
89
|
|
89
|
|
359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(=)
|
EBITDA before items
|
|
($)
|
|
168
|
|
135
|
|
150
|
|
180
|
|
633
|
|
27
|
|
33
|
|
32
|
|
32
|
|
124
|
|
(15)
|
|
(10)
|
|
(11)
|
|
(8)
|
|
(44)
|
|
180
|
|
158
|
|
171
|
|
204
|
|
713
|
|
(/)
|
Sales
|
|
($)
|
|
1,146
|
|
1,110
|
|
1,092
|
|
1,110
|
|
4,458
|
|
218
|
|
216
|
|
214
|
|
221
|
|
869
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,364
|
|
1,326
|
|
1,306
|
|
1,331
|
|
5,327
|
|
(=)
|
EBITDA margin before items
|
|
(%)
|
|
15%
|
|
12%
|
|
14%
|
|
16%
|
|
14%
|
|
12%
|
|
15%
|
|
15%
|
|
14%
|
|
14%
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
13%
|
|
12%
|
|
13%
|
|
15%
|
|
13%
|
"Operating income (loss) before items", "EBITDA before items" and
"EBITDA margin before items" have no standardized meaning prescribed by
GAAP and are not necessarily comparable to similar measures presented by
other companies and therefore should not be considered in isolation or
as a substitute for Operating income (loss) or any other earnings
statement, cash flow statement or balance sheet financial information
prepared in accordance with GAAP. It is important for readers to
understand that certain items may be presented in different lines by
different companies on their financial statements thereby leading to
different measures for different companies.
Domtar Corporation Supplemental Segmented Information (In
millions of dollars, unless otherwise noted)
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Q1
|
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
YTD
|
|
Pulp and Paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
($)
|
|
|
1,085
|
|
|
|
1,146
|
|
|
|
1,110
|
|
|
|
1,092
|
|
|
|
1,110
|
|
|
|
4,458
|
|
Operating income
|
|
($)
|
|
|
19
|
|
|
|
75
|
|
|
|
55
|
|
|
|
54
|
|
|
|
86
|
|
|
|
270
|
|
Depreciation and amortization
|
|
($)
|
|
|
73
|
|
|
|
74
|
|
|
|
75
|
|
|
|
75
|
|
|
|
73
|
|
|
|
297
|
|
Impairment of property, plant and equipment
|
|
($)
|
|
|
21
|
|
|
|
19
|
|
|
|
18
|
|
|
|
20
|
|
|
|
20
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paper Production
|
|
('000 ST)
|
|
|
785
|
|
|
|
808
|
|
|
|
806
|
|
|
|
794
|
|
|
|
837
|
|
|
|
3,245
|
|
Paper Shipments - Manufactured
|
|
('000 ST)
|
|
|
786
|
|
|
|
804
|
|
|
|
783
|
|
|
|
779
|
|
|
|
797
|
|
|
|
3,163
|
|
Communication Papers
|
|
('000 ST)
|
|
|
657
|
|
|
|
669
|
|
|
|
653
|
|
|
|
648
|
|
|
|
669
|
|
|
|
2,639
|
|
Specialty and Packaging
|
|
('000 ST)
|
|
|
129
|
|
|
|
135
|
|
|
|
130
|
|
|
|
131
|
|
|
|
128
|
|
|
|
524
|
|
Paper Shipments - Sourced from 3rd parties
|
|
('000 ST)
|
|
|
32
|
|
|
|
35
|
|
|
|
29
|
|
|
|
35
|
|
|
|
28
|
|
|
|
127
|
|
Paper Shipments - Total
|
|
('000 ST)
|
|
|
818
|
|
|
|
839
|
|
|
|
812
|
|
|
|
814
|
|
|
|
825
|
|
|
|
3,290
|
|
Pulp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp Shipments(a)
|
|
('000 ADMT)
|
|
|
369
|
|
|
|
350
|
|
|
|
345
|
|
|
|
333
|
|
|
|
386
|
|
|
|
1,414
|
|
Hardwood Kraft Pulp
|
|
(%)
|
|
|
6
|
%
|
|
|
9
|
%
|
|
|
8
|
%
|
|
|
8
|
%
|
|
|
8
|
%
|
|
|
8
|
%
|
Softwood Kraft Pulp
|
|
(%)
|
|
|
69
|
%
|
|
|
65
|
%
|
|
|
65
|
%
|
|
|
65
|
%
|
|
|
69
|
%
|
|
|
66
|
%
|
Fluff Pulp
|
|
(%)
|
|
|
25
|
%
|
|
|
26
|
%
|
|
|
27
|
%
|
|
|
27
|
%
|
|
|
23
|
%
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
($)
|
|
|
216
|
|
|
|
218
|
|
|
|
216
|
|
|
|
214
|
|
|
|
221
|
|
|
|
869
|
|
Operating income
|
|
($)
|
|
|
14
|
|
|
|
10
|
|
|
|
17
|
|
|
|
18
|
|
|
|
16
|
|
|
|
61
|
|
Depreciation and amortization
|
|
($)
|
|
|
16
|
|
|
|
16
|
|
|
|
16
|
|
|
|
14
|
|
|
|
16
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Exchange Rates
|
|
$US / $CAN
|
|
|
1.375
|
|
|
|
1.241
|
|
|
|
1.229
|
|
|
|
1.309
|
|
|
|
1.335
|
|
|
|
1.279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$CAN / $US
|
|
|
0.727
|
|
|
|
0.806
|
|
|
|
0.813
|
|
|
|
0.765
|
|
|
|
0.749
|
|
|
|
0.782
|
|
|
|
€ / $US
|
|
|
1.103
|
|
|
|
1.126
|
|
|
|
1.106
|
|
|
|
1.112
|
|
|
|
1.095
|
|
|
|
1.11
|
|
(a) Figures are gross of market pulp purchased from other
producers on the open market for some of our paper making operations.
Pulp Shipments represent the amount of pulp produced in excess of our
internal requirement.
Note: the term "ST" refers to a short ton and the term "ADMT" refers to
an air dry metric ton.
1 Non-GAAP financial measure. Refer to the Reconciliation
of Non-GAAP Financial Measures in the appendix.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005813/en/
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