KINGSEY FALLS, QC, Feb. 26 /PRNewswire-FirstCall/ - Cascades Inc. (CAS on the Toronto stock exchange), a leader in recovery and the manufacturing of green packaging and tissue paper products, announces its unaudited financial results for the three months and the fiscal year ended December 31, 2009.
(All amounts in this press release are in Canadian dollars unless otherwise indicated.)
Fiscal year highlights ---------------------- - Net earnings excluding specific items of $1.13 per share ($110 million) compared to net earnings of $0.04 per share ($4 million) in 2008. Net earnings including specific items of $0.60 per share ($61 million) compared to a net loss of $0.55 per share ($54 million) in 2008; - Operating income before depreciation and amortization (EBITDA) excluding specific items up 152% to $465 million, the highest annual EBITDA in the Company's history; - Cash flow from operations (adjusted) of $305 million ($3.12 per share) and positive free cash flow of $149 million in 2009 compared to negative free cash flow of $79 million in 2008; - Net debt down $268 million compared to December 31, 2008. Fourth quarter highlights ------------------------- - Net earnings excluding specific items of $0.27 per share ($26 million) compared to net earnings of $0.18 per share ($18 million) in the same period of last year. Net loss including specific items of $0.42 per share ($41 million) compared to a net loss of $0.19 per share ($18 million) in Q4 2008; - Operating income before depreciation and amortization (EBITDA) excluding specific items of $110 million, up 15% in comparison to the fourth of 2008; - Offerings of senior notes at an average yield of 8% due 2016, 2017, 2020 for a total of approximately $1 billion to refinance senior notes maturing in 2013. ------------------------------------------------------------------------- ------------------------------------------------------------------------- Financial Summary ----------------- Selected consolidated information (unaudited) (in millions of Canadian dollars, except amounts ------------------- ---------------------------- per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009 ------------------------------------------- ---------------------------- Note 2 Note 2 Sales 3,877 4,017 952 1,020 974 Excluding specific items(1) Operating income before depreciation and amortization (OIBD or EBITDA) 465 306 110 96 127 Operating income from continuing operations 247 93 54 41 74 Net earnings 110 4 26 18 35 per common share $1.13 $0.04 $0.27 $0.18 $0.36 Cash flow from operations (adjusted) from continuing operations 327 183 77 68 95 per common share $3.35 $1.85 $0.80 $0.69 $0.97 As reported Operating income before depreciation and amortization (OIBD or EBITDA)(1) 432 229 70 52 129 Operating income (loss) from continuing operations 214 16 14 (3) 76 Net earnings (loss) 60 (54) (41) (18) 34 per common share $0.61 $(0.55) $(0.42) $(0.19) $0.35 Cash flow from operations (adjusted) from continuing operations(1) 305 155 62 59 94 per common share(1) $3.12 $1.57 $0.64 $0.60 $0.96 ------------------------------------------- ---------------------------- Note 1 - see the supplemental information on non-GAAP measures note. Note 2 - the 2008 results were restated following the retrospective application of CICA handbook Section 3064
Commenting on the annual results, Mr. Alain Lemaire, President and Chief Executive Officer stated: "2009 was an outstanding year for Cascades. Despite a challenging economic environment which led to a drop in our total shipments and an erosion of our selling prices, our results continuously improved and we posted the highest annual EBITDA in the Company's history. The depreciation of the Canadian dollar and lower variable costs in the first half of the year partly explain those results, along with the turnaround of our boxboard assets, the rapid growth in demand for our green products and improved cost control.
Moreover, I am pleased with the sizeable reduction in working capital. Combined with our strong cash flow from operations, this provided us with the necessary free cash flow to pay down debt and complete strategic acquisitions. Not only do we have less debt compared to last year, we also significantly lowered our financial risk profile as we refinanced our long-term debt at favourable interest rates. All in all, Cascades is now well positioned to pursue its development and is committed to maintaining a healthy balance sheet."
Results analysis for the three-month period ended December 31, 2009 -------------------------------------------------------------------
In comparison with the same period last year, sales decreased by 7% to $952 million reflecting a significant drop of most of our selling prices and the appreciation of the Canadian dollar partly offset by a 4.5% increase in shipments.
Net earnings excluding specific items amounted to $26 million ($0.27 per share) in the fourth quarter of 2009 compared to $18 million ($0.18 per share) for the same period of last year. Including specific items, the net loss increased to $41 million ($0.42 per share) compared to $18 million ($0.19 per share) for the same quarter in 2008.
Operating results improved despite lower sales. In fact, the operating income from continuing operations excluding specific items increased to $54 million compared to $41 million in Q4 2008 due mainly to lower energy costs, improved results form our recovery and boxboard operations as well as better control of our costs. When including specific items, despite a more significant impairment loss in Q4 2009, operating income from continuing operations increased by $17 million to $14 million.
Specific items that have impacted Q4 2009 operating income are as follows:
- $42 million impairment loss ($37 million related to our Fjordcell pulp mill); - $4 million unrealized gain on financial instruments; - $2 million in closure and restructuring costs.
In addition to these previous items (total loss of $40 million), the Q4 2009 net loss was also impacted by these specific items (before tax):
- $37 million foreign exchange loss on long-term debt and financial instruments ($33 million related to our long-term debt refinancing); - $17 million loss on long-term debt refinancing; - $3 million gain included in the share of results of significantly influenced companies; - $2 million gain from the adjustment of statutory tax rate.
See the two following tables for more details on GAAP and non-GAAP measures reconciliation.
Results analysis for the fiscal year ended December 31, 2009 ------------------------------------------------------------
In comparison to last year, sales decreased by 3% to $3.9 billion reflecting a drop of most of our selling prices as well as a 7.5% decline of shipments which more than offset the positive impact of a lower Canadian dollar on average in 2009.
The operating income from continuing operations excluding specific items increased to $247 million compared to $93 million last year mainly as a result of lower raw material and energy costs, the turnaround of our boxboard and other non-performing assets, the depreciation of the Canadian dollar as well as improved cost efficiency. When including specific items, operating income from continuing operations increased by $198 million to $214 million.
For the fiscal year ended December 31, 2009, net earnings excluding specific items amounted to $110 million ($1.13 per share) compared to net earnings of $4 million ($0.04 per share) last year. Including specific items, net earnings reached $60 million ($0.61 per share) compared to a net loss of $54 million ($0.55 per share) in 2008.
Net debt decreased by $268 million compared to December 31st 2009 and the ratio of net debt to EBITDA excluding specific items in the last twelve months decreased from 5.9x in the fourth quarter of 2008 to 3.3x in the fourth quarter of 2009.
Near term outlook -----------------
Mr. Alain Lemaire, President and Chief Executive Officer added: "Looking ahead to the first quarter of 2010, we expect to benefit from the continuous improvement of demand and from the current implementation of selling price increases in most of our sectors. We however anticipate some short-term pressure on profitability due to the significant rise of recycled fibre costs.
On the financial front, notwithstanding our improved flexibility and ratios in 2009, we will maintain our objective of reducing our working capital in line with sales and a cautious approach with regards to capital investments in 2010 aiming at generating approximately $100 million of free cash flow annually. We will also continue our efforts to divest non-strategic or non-performing assets."
Dividend on common shares and normal course issuer bid ------------------------------------------------------
The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid March 23, 2010 to shareholders of record at the close of business on March 10, 2010. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada). In addition, in the fourth quarter of 2009, in accordance with its normal course issuer bid program, Cascades purchased 138,300 shares at an average price of $7.93. In 2009 Cascades purchased for cancellation 1,340,318 common shares at an average price of $3.04 per share representing an aggregate amount of approximately $4.1 million.
Supplemental information on non-GAAP measures
Operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share are not measures of performance under Canadian GAAP. The Company includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share because they are measures used by management to assess the operating and financial performance of the Company's operating segments. Additionally, the Company believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share does not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with Canadian GAAP, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with Canadian GAAP excluding the change in working capital components and cash flow from operations per share is determined by dividing cash flow from operations by the weighted average number of common shares of the period.
Operating income before depreciation and amortization excluding specific items, earnings before interests, taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items, net earnings per common share excluding specific items, cash flow from operations excluding specific items and cash flow from operations per share excluding specific items are non-GAAP measures. The Company believes that it is useful for investors to be aware of specific items that have adversely or positively affected its GAAP measures, and that the above mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Company's measures excluding specific items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.
Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, debt restructuring charges, gains or losses on sale of business unit, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature.
Net earnings (loss), which is a performance measure defined by Canadian GAAP is reconciled below to operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interests, taxes, depreciation and amortization excluding specific items:
(in millions of ------------------- ---------------------------- Canadian dollars) 2009 2008 Q4/2009 Q4/2008 Q3/2009 ------------------------------------------- ---------------------------- Note 2 Note 2 Net earnings (loss) 60 (54) (41) (18) 34 Net earnings from discontinued operations - (18) - - - Non-controlling interest (1) 2 - - - Share of results of significantly influenced companies (17) (8) (7) (2) (3) Provision for (recovery of) income taxes 23 (32) (16) (12) 17 Foreign exchange loss on long-term debt and financial instruments 45 26 37 6 3 Gain on purchase of senior notes (14) (2) - (2) - Loss on long-term debt refinancing 17 - 17 - - Interest expense 101 102 24 25 25 ------------------- ---------------------------- Operating income 214 16 14 (3) 76 Specific items : Inventory adjustment resulting from business acquisition - 2 - - - Loss on disposal and others 1 5 - - - Impairment loss 46 16 42 13 1 Closure and restructuring costs 12 27 2 10 5 Unrealized loss (gain) on financial instruments (26) 27 (4) 21 (8) ------------------- ---------------------------- 33 77 40 44 (2) ------------------- ---------------------------- Operating income - excluding specific items 247 93 54 41 74 Depreciation and amortization 218 213 56 55 53 ------------------- ---------------------------- Operating income before depreciation and amortization (OIBD) - excluding specific items(1) 465 306 110 96 127 ------------------------------------------- ---------------------------- ------------------------------------------- ---------------------------- Note 1 - also refers to earnings before interests, taxes, depreciation and amortization (EBITDA). Note 2 - the 2008 results were restated following the retrospective application of CICA handbook Section 3064
The following table reconciles net earnings and net earnings per share to net earnings excluding specific items and net earnings per share excluding specific items:
(in millions of Canadian dollars, except amounts -------------------------------------------------- per share) Net earnings (loss) ------------------------------------------- ---------------------------- 2009 2008 Q4/2009 Q4/2008 Q3/2009 -------------------- ---------------------------- Note 2 Note 2 As per GAAP 60 (54) (41) (18) 34 Specific items : Inventory adjustment resulting from business acquisition - 2 - - - Loss on disposal and others 1 5 - - - Impairment loss 46 16 42 13 1 Closure and restructuring costs 12 27 2 10 5 Unrealized loss (gain) financial instruments (26) 27 (4) 21 (8) Loss on long-term debt refinancing 17 - 17 - - Gain on purchase of senior notes (14) (2) - (2) - Foreign exchange loss on long-term debt and financial instruments 45 26 37 6 3 Share of results of significantly influenced companies (5) - (3) - - Gain included in discontinued operations - (23) - - - Adjustment of statutory tax rate (6) - (2) - - Tax effect on specific items (20) (20) (22) (12) - ------------------ ---------------------------- 50 58 67 36 1 ------------------ ---------------------------- Excluding specific items 110 4 26 18 35 ------------------------------------------- ---------------------------- ------------------------------------------- ---------------------------- (in millions of Canadian dollars, except amounts -------------------------------------------------- per share) Net earnings (loss) per share(1) ------------------------------------------- ---------------------------- 2009 2008 Q4/2009 Q4/2008 Q3/2009 -------------------- ---------------------------- Note 2 Note 2 As per GAAP $0.61 $(0.55) $(0.42) $(0.19) $0.35 Specific items : Inventory adjustment resulting from business acquisition $ - $0.01 $ - $ - $ - Loss on disposal and others $ - $0.05 $ - $ - $ - Impairment loss $0.35 $0.13 $0.32 $0.11 $0.01 Closure and restructuring costs $0.09 $0.19 $0.02 $0.07 $0.03 Unrealized loss (gain) financial instruments $(0.19) $0.19 $(0.03) $0.15 $(0.06) Loss on long-term debt refinancing $0.11 $ - $0.11 $ - $ - Gain on purchase of senior notes $(0.13) $(0.01) $ - $(0.01) $ - Foreign exchange loss on long-term debt and financial instruments $0.40 $0.22 $0.32 $0.05 $0.03 Share of results of significantly influenced companies $(0.05) $ - $(0.03) $ - $ - Gain included in discontinued operations $ - $(0.19) $ - $ - $ - Adjustment of statutory tax rate $(0.06) $ - $(0.02) $ - $ - Tax effect on specific items ------------------ ---------------------------- $0.52 $0.59 $0.69 $0.37 $0.01 ------------------ ---------------------------- Excluding specific items $1.13 $0.04 $0.27 $0.18 $0.36 ------------------------------------------- ---------------------------- ------------------------------------------- ---------------------------- Note 1 - specific amounts per share are calculated on an after-tax basis. Note 2 - the 2008 results were restated following the retrospective application of CICA handbook Section 3064
The following table reconciles cash flow from operations and cash flow from operations per share to cash flow from operations excluding specific items and cash flow from operations per share excluding specific items:
-------------------------------------------------- Cash flow from operations -------------------------------------------------- (in millions of Canadian dollars, except amounts per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009 ------------------------------------------- ---------------------------- Cash flow provided by operating activities 357 124 91 85 117 Changes in non-cash working capital components (52) 31 (29) (26) (23) -------------------- ---------------------------- Cash flow (adjusted) from operations 305 155 62 59 94 Specific items : Inventory adjustment resulting from business acquisition - 2 - - - Gains or losses on disposals and others 1 - - - - Loss on long-term debt refinancing 13 - 13 - - Closure and restructuring costs, net of current income tax 8 26 2 9 1 -------------------- ---------------------------- Excluding specific items 327 183 77 68 95 ------------------------------------------- ---------------------------- ------------------------------------------- ---------------------------- -------------------------------------------------- Cash flow from operations per share -------------------------------------------------- (in millions of Canadian dollars, except amounts per share) 2009 2008 Q4/2009 Q4/2008 Q3/2009 ------------------------------------------- ---------------------------- Cash flow provided by operating activities Changes in non-cash working capital components -------------------- ---------------------------- Cash flow (adjusted) from operations $3.12 $1.57 $0.64 $0.60 $0.96 Specific items : Inventory adjustment resulting from business acquisition - $0.02 - - - Gains or losses on disposals and others - - - - - Loss on long-term debt refinancing $0.14 - $0.14 - - Closure and restructuring costs, net of current income tax $0.09 $0.26 $0.02 $0.09 $0.01 -------------------- ---------------------------- Excluding specific items $3.35 $1.85 $0.80 $0.69 $0.97 ------------------------------------------- ---------------------------- ------------------------------------------- ----------------------------
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 13,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.
Consolidated Balance Sheets (in millions of Canadian dollars) As at December 31, As at December 31, 2009 2008 ---------------------------------------- Assets (unaudited) Current assets Cash and cash equivalents 19 11 Accounts receivable 543 657 Inventories 520 580 ------------------------------------------------------------------------- 1,082 1,248 Property, plant and equipment 1,912 2,030 Intangible assets 165 149 Other assets 317 283 Goodwill 316 321 ------------------------------------------------------------------------- 3,792 4,031 ---------------------------------------- ---------------------------------------- Liabilities and Shareholders' Equity Current liabilities Bank loans and advances 83 104 Accounts payable and accrued liabilities 505 586 Current portion of long-term debt 10 36 ------------------------------------------------------------------------- 598 726 Long-term debt 1,459 1,672 Other liabilities 431 377 ---------------------------------------- 2,488 2,775 ------------------------------------------------------------------------- Commitments and Contingencies Shareholders' Equity Capital stock 499 506 Retained earnings 700 656 Contributed surplus 14 9 Accumulated other comprehensive income 91 85 ---------------------------------------- 1,304 1,256 ------------------------------------------------------------------------- 3,792 4,031 ---------------------------------------- ---------------------------------------- Consolidated Statements of Earnings (Loss) (in millions of Canadian dollars, except per share amounts) (unaudited) For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- Sales 952 1,020 3,877 4,017 Cost of sales and expenses Cost of sales (excluding depreciation and amortization) 737 821 2,991 3,323 Depreciation and amortization 56 55 218 213 Selling and administrative expenses 104 102 413 389 Losses on disposal and others - - 1 5 Impairment and other restructuring costs 44 23 58 43 Loss (gain) on financial instruments (3) 22 (18) 28 ------------------------------------------------------------------------- 938 1,023 3,663 4,001 ------------------------------------------------------------------------- Operating income (loss)from continuing operations 14 (3) 214 16 Interest expense 24 25 101 102 Loss on refinancing of long term debt 17 - 17 - Gain on purchases of senior notes - (2) (14) (2) Foreign exchange loss on long-term debt and financial instruments 37 6 45 26 ------------------------------------------------------------------------- (64) (32) 65 (110) Provision for (recovery of) income taxes (16) (12) 23 (32) Share of results of significantly influenced companies (7) (2) (17) (8) Non-controlling interest - - (1) 2 ------------------------------------------------------------------------- Net earnings (loss) from continuing operations (41) (18) 60 (72) Net earnings from discontinued operations - - - 18 ------------------------------------------------------------------------- Net earnings (loss) for the period (41) (18) 60 (54) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (loss) from continuing operations per common share Basic ($0.42) ($0.19) $0.61 ($0.73) ----------------------------------------------- ----------------------------------------------- Diluted ($0.42) ($0.19) $0.60 ($0.73) ----------------------------------------------- ----------------------------------------------- Net earnings (loss) per common share Basic ($0.42) ($0.19) $0.61 ($0.55) ----------------------------------------------- ----------------------------------------------- Diluted ($0.42) ($0.19) $0.60 ($0.55) ----------------------------------------------- ----------------------------------------------- Weighted average basic number of common shares outstanding 97,283,958 98,600,556 97,656,412 98,804,536 ----------------------------------------------- Consolidated Statements of Shareholders' Equity (in millions of Canadian dollars) (unaudited) For the year ended December 31, 2009 -------------------------------------------------- Accumu- lated other Contri- compre- Share- Capital Retained buted hensive holders' stock earnings surplus income Equity -------------------------------------------------- Balance - Beginning of year 506 656 9 85 1,256 Comprehensive income: Net earnings for the year - 60 - - 60 Change in other comprehensive income (loss) - - - 6 6 --------- Comprehensive income for the year 66 --------- Dividends - (16) - - (16) Adjustment related to stock options - - 2 - 2 Redemption of common shares (7) - 3 - (4) -------------------------------------------------- Balance - End of year 499 700 14 91 1,304 -------------------------------------------------- -------------------------------------------------- For the year ended December 31, 2008 -------------------------------------------------- Accumu- lated other compre- Contri- hensive Share- Capital Retained buted income holders' stock earnings surplus (loss) Equity -------------------------------------------------- Balance - Beginning of year 509 727 8 (43) 1,201 Comprehensive income: Net loss for the year - (54) - - (54) Change in other comprehensive income - - - 128 128 --------- Comprehensive income for the year 74 --------- Dividends - (16) - - (16) Adjustment related to stock options - - 1 - 1 Redemption of common shares (3) (1) - - (4) -------------------------------------------------- Balance - End of year 506 656 9 85 1,256 -------------------------------------------------- -------------------------------------------------- Consolidated Statements of Comprehensive Income (Loss) (in millions of Canadian dollars) (unaudited) For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- Net earnings (loss) for the period (41) (18) 60 (54) ----------------------------------------------- Other comprehensive income (loss) TRANSLATION ADJUSTMENTS Change in foreign currency translation of self-sustaining foreign subsidiaries (23) 124 (128) 176 Change in foreign currency translation related to hedging activities 14 17 87 17 Income taxes (2) (3) (12) (3) CASH FLOW HEDGES Change in fair value of foreign exchange forward contracts designated as cash flow hedges 35 (75) 87 (88) Change in fair value of interest rate swap agreements designated as cash flow hedges - (1) - (1) Change in fair value of commodity derivative financial instruments designated as cash flow hedges - (8) (2) 3 Income taxes (10) 24 (26) 24 ----------------------------------------------- 14 78 6 128 ----------------------------------------------- Comprehensive income (loss) for the period (27) 60 66 74 ----------------------------------------------- ----------------------------------------------- Consolidated Statements of Cash Flows (in millions of Canadian dollars) (unaudited) For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- OPERATING ACTIVITIES FROM CONTINUING OPERATIONS Net earnings (loss) for the period (41) (18) 60 (54) Net earnings from discontinued operations - - - (18) ------------------------------------------------------------------------- Net earnings (loss) from continuing operations (41) (18) 60 (72) Adjustments for Depreciation and amortization 56 55 218 213 Losses on disposal and others - - 1 5 Impairment and other restructuring costs 42 13 50 16 Unrealized loss (gain) on financial instruments (4) 21 (26) 27 Loss on refinancing of long term debt and financial instruments 4 - 4 - Foreign exchange loss on long-term debt 37 6 45 26 Gain on purchase of senior notes - (2) (14) (2) Future income taxes (18) (10) (7) (52) Share of results of significantly influenced companies (7) (2) (17) (8) Non-controlling interest - - (1) 2 Early settlement of natural gaz contracts - (2) - 11 Others (7) (2) (8) (11) ------------------------------------------------------------------------- 62 59 305 155 Change in non-cash working capital components 29 26 52 (31) ------------------------------------------------------------------------- 91 85 357 124 ------------------------------------------------------------------------- INVESTING ACTIVITIES FROM CONTINUING OPERATIONS Purchase of property, plant and equipment (49) (56) (173) (184) Proceeds from disposal of property, plant and equipment - - 2 5 Increase in other assets (8) (6) (17) (4) Cash of a joint venture and business acquisitions (5) - (69) 5 ------------------------------------------------------------------------- (62) (62) (257) (178) ------------------------------------------------------------------------- FINANCING ACTIVITIES FROM CONTINUING OPERATIONS Bank loans and advances 4 7 (18) 20 Change in revolving credit facilities (219) (171) (250) (149) Issuance of senior notes, net of related expenses 955 - 955 - Purchase of senior notes (761) - (779) (2) Increase in other long-term debt - 1 27 2 Payments of other long-term debt (4) - (12) (5) Early settlement of foreign exchange contracts - 150 8 150 Redemption of common shares (1) (1) (4) (4) Dividend paid to a non-controlling interest - (5) - (5) Dividends (4) (4) (16) (16) ------------------------------------------------------------------------- (30) (23) (89) (9) ------------------------------------------------------------------------- Change in cash and cash equivalents during the period from continuing operations (1) - 11 (63) Change in cash and cash equivalents from discontinued operations, including proceeds on disposal - 1 (3) 50 ------------------------------------------------------------------------- Net change in cash and cash equivalents during the period (1) 1 8 (13) Translation adjustments on cash and cash equivalents - 1 - (1) Cash and cash equivalents - Beginning of period 20 9 11 25 ------------------------------------------------------------------------- Cash and cash equivalents - End of period 19 11 19 11 ----------------------------------------------- ----------------------------------------------- Selected Segmented Information (in millions of Canadian dollars) (unaudited) For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- Sales Packaging products Boxboard Manufacturing 178 175 706 743 Converting 160 179 692 677 Intersegment sales (18) (23) (85) (97) ----------------------------------------------- 320 331 1,313 1,323 Containerboard Manufacturing 124 154 517 615 Converting 210 232 887 962 Intersegment sales (82) (93) (342) (374) ----------------------------------------------- 252 293 1,062 1,203 Specialty products Manufacturing 78 83 332 315 Converting 61 70 243 267 Recovery and deinked pulp 77 81 270 376 Intersegment sales (16) (25) (76) (98) ----------------------------------------------- 200 209 769 860 Intersegment sales (22) (19) (67) (100) ----------------------------------------------- 750 814 3,077 3,286 Tissue papers Manufacturing and converting 212 228 840 787 Intersegment sales (10) (22) (40) (56) ------------------------------------------------------------------------- Total 952 1,020 3,877 4,017 ------------------------------------------------------------------------- ------------------------------------------------------------------------- For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- Operating income (loss) before depreciation and amortization from continuing operations Packaging products Boxboard Manufacturing 14 (16) 48 (40) Converting 17 11 59 50 Others (37) (2) (40) (13) ----------------------------------------------- (6) (7) 67 (3) Containerboard Manufacturing 10 17 91 57 Converting 16 7 56 53 Others 3 (5) (2) (7) ----------------------------------------------- 29 19 145 103 Specialty products Manufacturing 7 6 34 10 Converting 6 9 25 30 Recovery and deinked pulp 3 6 15 24 Others 2 (1) - - ----------------------------------------------- 18 20 74 64 ----------------------------------------------- 41 32 286 164 Tissue papers Manufacturing and converting 34 41 153 89 Corporate (5) (21) (7) (24) ------------------------------------------------------------------------- Operating income before depreciation and amortization from continuing operations 70 52 432 229 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Depreciation and amortization Boxboard (18) (20) (75) (72) Containerboard (15) (16) (63) (63) Specialty products (9) (8) (34) (33) Tissue papers (10) (9) (37) (35) Corporate and eliminations (4) (2) (9) (10) ----------------------------------------------- (56) (55) (218) (213) ----------------------------------------------- Operating income (loss) from continuing operations 14 (3) 214 16 ------------------------------------------------------------------------- ------------------------------------------------------------------------- For the 3-month periods For the years ended December 31, ended December 31, 2009 2008 2009 2008 ----------------------------------------------- Purchase of property, plant and equipment Packaging products Boxboard Manufacturing 10 7 30 21 Converting 7 13 28 36 ----------------------------------------------- 17 20 58 57 Containerboard Manufacturing 5 7 15 17 Converting 9 6 16 21 ----------------------------------------------- 14 13 31 38 Specialty products Manufacturing 2 4 7 9 Converting 3 1 7 4 Recovery and deinked pulp 4 9 18 28 ----------------------------------------------- 9 14 32 41 ----------------------------------------------- 40 47 121 136 Tissue papers Manufacturing and converting 5 12 31 37 Corporate 6 3 20 8 ------------------------------------------------------------------------- Total 51 62 172 181 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Purchase of property, plant and equipment included in accounts payable Beginning of period 11 8 14 17 End of period (13) (14) (13) (14) ------------------------------------------------------------------------- Total investing activities 49 56 173 184 ------------------------------------------------------------------------- -------------------------------------------------------------------------
SOURCE CASCADES INC.
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