Cascades Reports Strong Results for the Fourth Quarter of 2020 and 3rd Consecutive Annual Record Levels of Sales and Adjusted OIBD
Positive containerboard industry dynamics support optimistic outlook
KINGSEY FALLS, QC, Feb. 23, 2021 /PRNewswire/ - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period and fiscal year ended December 31, 2020.
Q4 2020 Highlights
- Sales of $1,284 million (compared with $1,275 million in Q3 2020 (+1%) and $1,227 million in Q4 2019 (+5%))
- As reported (including specific items)
- Operating income of $109 million (compared with $73 million in Q3 2020 (+49%) and operating loss of $(1) million in Q4 2019)
- Operating income before depreciation and amortization (OIBD)1 of $181 million (compared with $154 million in Q3 2020 (+18%) and $76 million in Q4 2019 (+138%))
- Net earnings per share of $0.72 (compared with $0.51 in Q3 2020 and net loss per share of $(0.27) in Q4 2019)
- Adjusted (excluding specific items)1
- Operating income of $94 million (compared with $81 million in Q3 2020 (+16%) and $75 million in Q4 2019 (+25%))
- OIBD of $166 million (compared with $162 million in Q3 2020 (+2%) and $152 million in Q4 2019 (+9%))
- Net earnings per share of $0.42 (compared with $0.50 in Q3 2020 and $0.30 in Q4 2019)
2020 Annual Highlights
- Sales of $5,157 million (compared with $4,996 million in 2019 (+3%))
- As reported (including specific items)
- Operating income of $366 million (compared with $261 million in 20192 (+40%))
- Operating income before depreciation and amortization (OIBD)1 of $665 million (compared with $550 million in 20192 (+21%))
- Net earnings per share of $2.04 (compared with $0.77 in 20192)
- Adjusted (excluding specific items)1
- Operating income of $376 million (compared with $315 million in 2019 (+19%))
- OIBD of $675 million (compared with $604 million in 2019 (+12%))
- Net earnings per share of $1.95 (compared with $1.02 in 2019)
- Net debt1 of $1,679 million as at December 31, 2020 (compared with $1,982 million as at September 30, 2020) reflecting solid cash flow from operations, the $125 million equity offering and appreciation of the Canadian dollar. Net debt to adjusted OIBD ratio1 at 2.5x down from 3.0x at September 30, 2020.
- Adjusted free cash flow of $285 million, or $2.97 per share, in 2020, compared to $107 million, or $1.14 per share, in 2019.
- Total capital expenditures paid, net of disposals, of $195 million in 2020, compared to $231 million in 2019; Forecasted 2021 capital expenditures of between $450 million and $475 million include $250 million envelope for the Bear Island containerboard conversion project in Virginia, USA.
- Announced planned progressive and permanent closure of tissue operations at the Laval plant, located in Québec, in June 2021, and that Tissue operations in Pennsylvania ceased in December 2020.
- Reno De Medici S.p.A. (Boxboard Europe) announced the signature of a put option for the sale of its French subsidiary, which produces virgin fiber-based boxboard, in February 2021. The transaction is expected to close at the end of the second quarter of 2021.
1 |
For further details, please refer to the "Supplemental Information on non-IFRS Measures" section. |
2 |
2019 third quarter consolidated results have been adjusted to reflect retrospective adjustments of purchase price allocation. |
Mario Plourde, President and CEO, commented: "We are very pleased with our strong fourth quarter performance. Consolidated adjusted OIBD of $166 million surpassed our cautious outlook for the period, represented an increase of 2% sequentially and 9% year-over, and drove annual profitability to a record level for the third consecutive year. These results demonstrate good operational execution within the context of a challenging environment, benefits being realized from our ongoing margin improvement initiatives, and the resiliency and dedication of our employees throughout the challenges of COVID-19. Sequentially, fourth quarter performance was driven by a solid contribution from the Containerboard segment, itself fueled by stronger than expected demand on both the manufacturing and converting side. The Tissue segment also generated good results, with stable consumer retail tissue demand helping to offset lower demand levels for Away-from-Home products as a result of COVID-19. The Tissue segment generated a solid fourth quarter adjusted OIBD margin of 10.5% in spite of ongoing challenging market conditions. The Specialty Products and European Boxboard segments generated slightly lower results in the quarter.
We have made significant progress on the strategic side in 2020. A large portion of our announced modernization investments in the Tissue segment have been completed, with the remaining two state-of-the-art converting lines expected to be installed in the coming quarters. In Containerboard, we announced details of our strategic Bear Island conversion project in mid-October, and helped to de-risk the project with a concurrent $125 million equity issuance offering. The European Boxboard segment announced the acquisition of Papelera del Principado S.A. ("Paprinsa") and three affiliated companies, that will strengthen and consolidate Reno de Medici's competitive positioning within European recycled boxboard markets, and is expected to close at the end of the first quarter of 2021. At the corporate level, we continued to proactively manage our long-term debt profile, redeeming our 2023 senior notes and issuing 2028 senior notes under beneficial terms. On a broader basis, we advanced our margin improvement initiatives throughout the year, with these efforts contributing approximately $75 million to our consolidated adjusted OIBD level in 2020."
Discussing near-term outlook, Mr. Plourde commented, "Our near-term outlook is positive despite ongoing COVID-19 related uncertainty. Demand levels in Containerboard remain strong which, combined with recent industry price increases, are expected to help offset raw material pricing headwinds. In Tissue, stronger than expected volumes in December, usual seasonal softness in the first quarter, and unfavourable demand impact on Away-from-Home products related to COVID-19 are expected to translate into weaker sequential performance. We expect the ongoing modernization, cost management and margin improvement initiatives to partially counter softer demand factors. Near-term performance in Specialty Products is forecasted to remain stable sequentially, with higher average selling prices and good demand trends for consumer food packaging offsetting slightly higher raw material costs. Results in European Boxboard are expected to remain stable, with higher volumes and a favourable exchange rate mitigating higher forecasted raw material and energy costs. On a consolidated basis, raw material costs are expected to be a headwind for our businesses sequentially, with average OCC prices increasing in line with usual seasonal trends for the period. Prices for white recycled fibers remain stable, while those for virgin pulp are expected to increase given recent moves in index pricing. Raw materials remain readily available, and we do not foresee any changes in this regard.
Looking further ahead, 2021 will be a busy year. The highlight will be our Bear Island containerboard project, which will account for the lion's share of our capex program. We will also be finalizing modernization investments in our tissue converting operations, with all of these projects encompassed within our $450 to $475 million capital program for 2021. We expect these investments to be fully funded by solid projected cash flows for the year, in part driven by our ongoing margin improvement initiatives that are targeting net revenue management, production efficiency, organizational effectiveness and supply chain optimization. These initiatives are expected to contribute 1% annually to consolidated OIBD margins in both 2021 and 2022, regardless of external factors. As we continue to navigate the challenges and uncertainties inherent in the ongoing pandemic business environment, we remain focused on ensuring the health and safety of our employees, and on proactively engaging with our customers to ensure that their needs and expectations are met consistently, promptly and professionally."
Financial Summary
Selected consolidated information
(in millions of Canadian dollars, except amounts per share) |
2020 |
2019 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
||||||||||
Sales |
5,157 |
4,996 |
1,284 |
1,275 |
1,227 |
||||||||||
As Reported |
|||||||||||||||
Operating income before depreciation and amortization |
665 |
550 |
181 |
154 |
76 |
||||||||||
Operating income (loss)2 |
366 |
261 |
109 |
73 |
(1) |
||||||||||
Net earnings (loss)2 |
198 |
72 |
73 |
49 |
(26) |
||||||||||
per share2 |
$ |
2.04 |
$ |
0.77 |
$ |
0.72 |
$ |
0.51 |
$ |
(0.27) |
|||||
Adjusted1 |
|||||||||||||||
Operating income before depreciation and |
675 |
604 |
166 |
162 |
152 |
||||||||||
Operating income |
376 |
315 |
94 |
81 |
75 |
||||||||||
Net earnings |
187 |
96 |
42 |
48 |
29 |
||||||||||
per share |
$ |
1.95 |
$ |
1.02 |
$ |
0.42 |
$ |
0.50 |
0.30 |
||||||
Margin (OIBD) |
13.1 |
% |
12.1 |
% |
12.9 |
% |
12.7 |
% |
12.4 |
% |
|||||
Segmented OIBD as reported
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
Packaging Products |
|||||
Containerboard |
436 |
443 |
150 |
101 |
98 |
Boxboard Europe |
122 |
92 |
18 |
31 |
8 |
Specialty Products |
58 |
52 |
15 |
16 |
9 |
Tissue Papers2 |
145 |
67 |
27 |
25 |
(3) |
Corporate Activities |
(96) |
(104) |
(29) |
(19) |
(36) |
OIBD as reported |
665 |
550 |
181 |
154 |
76 |
1 |
Please refer to the "Supplemental Information on Non-IFRS Measures" section for reconciliation of these figures. |
2 |
2019 third quarter consolidated results have been adjusted to reflect retrospective adjustments of purchase price allocation. |
Segmented adjusted OIBD1
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
Packaging Products |
|||||
Containerboard |
403 |
441 |
110 |
100 |
106 |
Boxboard Europe |
129 |
108 |
27 |
29 |
24 |
Specialty Products |
60 |
55 |
15 |
16 |
9 |
Tissue Papers |
175 |
86 |
40 |
36 |
35 |
Corporate Activities |
(92) |
(86) |
(26) |
(19) |
(22) |
Adjusted OIBD |
675 |
604 |
166 |
162 |
152 |
1 - Refer to the "Supplemental Information on Non-IFRS Measures" section. |
Analysis of results for the three-month period ended December 31, 2020 (compared to the same period last year)
Sales of $1,284 million grew by $57 million, or 5%, compared with the same period last year. This was driven by stronger volumes in all packaging segments, most notably in the Containerboard segment which benefited from strong demand on both the manufacturing and converting side. This was partially offset by lower volumes in the Tissue segment attributable to continued COVID-19 related market contraction in the Away-from-Home segment. Year-over-year consolidated sales levels also benefited from favourable average selling prices and sales mix, with price increases realized in Tissue and stable pricing and sales mix in both Containerboard and Specialty Products more than mitigated the impacts of a less favourable pricing and mix environment for European Boxboard. Foreign exchange rates were beneficial for the European Boxboard business, which more than offset the impact of less favourable foreign exchange rates for Tissue and Containerboard.
The Corporation generated an operating income before depreciation and amortization (OIBD) of $181 million in the fourth quarter of 2020, up from $76 million in the fourth quarter of 2019. On an adjusted basis, fourth quarter OIBD totaled $166 million, an increase of $14 million, or 9% from the $152 million generated in the same period last year. Results from the Containerboard segment increased 4% year-over-year, as benefits from higher volumes and lower production costs more than offset the impact from higher raw material prices. Stronger year-over-year Tissue results reflected more favourable sales mix and price increases, the effects of which more than mitigated the effects of lower COVID-19 related volumes and higher raw material costs. Adjusted OIBD in the Specialty Products segment increased compared to the prior year period, as higher volumes, beneficial favourable pricing and sales mix, and lower energy and production costs offset higher raw material costs. Our North American business segments also benefited from the positive impacts being generated by our margin improvement program that was started in the first quarter of 2020. In Europe, lower energy and production costs, combined with beneficial foreign exchange rates and slightly higher volume, more than offset less favourable pricing and sales mix and slightly higher raw material costs.
On an adjusted basis1, fourth quarter 2020 OIBD stood at $166 million, versus $152 million in the previous year. The main specific items, before income taxes, that impacted our fourth quarter 2020 OIBD and/or net earnings were:
- $40 million gain from the sale of a building and the land of the Containerboard Packaging facility located in Etobicoke, Ontario, Canada (OIBD and net earnings);
- $2 million environmental provision related to a Tissue plant in Pennsylvania, USA (OIBD and net earnings);
- $8 million of restructuring charges recorded in Tissue and Corporate Activities as part of profitability improvement and restructuring initiatives (OIBD and net earnings);
- $13 million of impairment charges, primarily in the Tissue Papers and Boxboard Europe segments, related to changes in the valuation of certain assets due to the current economic and market demand conditions (OIBD and net earnings);
- $2 million unrealized loss on financial instruments (OIBD and net earnings);
- $11 million unrealized gain on interest rate swaps and option fair value (net earnings);
- $3 million foreign exchange gain on long-term debt and financial instruments (net earnings);
- $3 million fair value revaluation loss on investments (net earnings).
For the 3-month periods ended December 31, 2020, the Corporation posted net earnings of $73 million, or $0.72 per share, compared to net loss of $26 million, or $(0.27) per share, in the same period of 2019. On an adjusted basis1, the Corporation generated net earnings of $42 million in the fourth quarter of 2020, or $0.42 per share, compared to net earnings of $29 million, or $0.30 per share, in the same period of 2019.
1 |
For further details, please refer to the "Supplemental Information on non-IFRS Measures" section. |
Dividend on common shares and normal course issuer bid
The Board of Directors of Cascades declared a quarterly dividend of $0.08 per share to be paid on March 25, 2021 to shareholders of record at the close of business on March 10, 2021. This dividend is an "eligible dividend" as per the Income Tax Act (R.C.S. (1985), Canada). Cascades purchased 190,200 shares for cancellation during the fourth quarter of 2020 at an average price of $14.46.
2020 Fourth Quarter Results Conference Call Details
Management will discuss the 2020 fourth quarter financial results during a conference call today at 9:00 a.m. EDT. The call can be accessed by dialing 1-888-231-8191 (international dial-in 1-647-427-7450). The conference call, including the investor presentation, will be broadcast live on the Cascades website (www.cascades.com under the "Investors" section). A replay of the call will be available on the Cascades website and may also be accessed by phone until March 25, 2021 by dialing 1-855-859-2056 (international dial-in 1-416-849-0833), access code 5877077.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs 12,000 women and men across a network of 85 facilities in North America and Europe. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (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 Corporation'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 Corporation's Securities and Exchange Commission filings.
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars) (unaudited) |
December 31, |
December 31, |
Assets |
||
Current assets |
||
Cash and cash equivalents |
384 |
155 |
Accounts receivable |
659 |
610 |
Current income tax assets |
23 |
32 |
Inventories |
569 |
598 |
Current portion of financial assets |
5 |
10 |
1,640 |
1,405 |
|
Long-term assets |
||
Investments in associates and joint ventures |
82 |
80 |
Property, plant and equipment |
2,772 |
2,770 |
Intangible assets with finite useful life |
160 |
182 |
Financial assets |
16 |
16 |
Other assets |
50 |
55 |
Deferred income tax assets |
170 |
153 |
Goodwill and other intangible assets with indefinite useful life |
522 |
527 |
5,412 |
5,188 |
|
Liabilities and Equity |
||
Current liabilities |
||
Bank loans and advances |
12 |
11 |
Trade and other payables |
861 |
792 |
Current income tax liabilities |
17 |
17 |
Current portion of long-term debt |
102 |
85 |
Current portion of provisions for contingencies and charges |
14 |
5 |
Current portion of financial liabilities and other liabilities |
25 |
137 |
1,031 |
1,047 |
|
Long-term liabilities |
||
Long-term debt |
1,949 |
2,022 |
Provisions for contingencies and charges |
57 |
49 |
Financial liabilities |
6 |
5 |
Other liabilities |
202 |
198 |
Deferred income tax liabilities |
210 |
198 |
3,455 |
3,519 |
|
Equity |
||
Capital stock |
622 |
491 |
Contributed surplus |
13 |
15 |
Retained earnings |
1,146 |
1,003 |
Accumulated other comprehensive loss |
(28) |
(17) |
Equity attributable to Shareholders |
1,753 |
1,492 |
Non-controlling interests |
204 |
177 |
Total equity |
1,957 |
1,669 |
5,412 |
5,188 |
CONSOLIDATED STATEMENTS OF EARNINGS
For the 3-month periods ended |
For the years ended |
|||||||
(in millions of Canadian dollars, except per common share amounts and number of |
2020 |
2019 |
2020 |
2019 |
||||
Sales |
1,284 |
1,227 |
5,157 |
4,996 |
||||
Cost of sales and expenses |
||||||||
Cost of sales (including depreciation and amortization of $72 million |
1,078 |
1,022 |
4,321 |
4,232 |
||||
Selling and administrative expenses |
112 |
133 |
460 |
453 |
||||
Loss (gain) on acquisitions, disposals and others |
(38) |
5 |
(43) |
(24) |
||||
Impairment charges and restructuring costs |
21 |
67 |
52 |
78 |
||||
Foreign exchange gain |
— |
(1) |
— |
(2) |
||||
Loss (gain) on derivative financial instruments |
2 |
2 |
1 |
(2) |
||||
1,175 |
1,228 |
4,791 |
4,735 |
|||||
Operating income (loss) |
109 |
(1) |
366 |
261 |
||||
Financing expense |
26 |
27 |
105 |
101 |
||||
Interest expense (revenue) on employee future benefits and other liabilities |
(10) |
(6) |
(7) |
42 |
||||
Loss on repurchase of long-term debt |
— |
14 |
6 |
14 |
||||
Foreign exchange loss (gain) on long-term debt and financial instruments |
(3) |
1 |
(6) |
(6) |
||||
Fair value revaluation loss on investments |
3 |
— |
3 |
— |
||||
Share of results of associates and joint ventures |
(5) |
(3) |
(14) |
(9) |
||||
Earnings (loss) before income taxes |
98 |
(34) |
279 |
119 |
||||
Provision for (recovery of) income taxes |
21 |
(11) |
45 |
19 |
||||
Net earnings (loss) including non-controlling interests for the period |
77 |
(23) |
234 |
100 |
||||
Net earnings attributable to non-controlling interests |
4 |
3 |
36 |
28 |
||||
Net earnings (loss) attributable to Shareholders for the period |
73 |
(26) |
198 |
72 |
||||
Net earnings (loss) per common share |
||||||||
Basic |
$ |
0.72 |
$ |
(0.27) |
$ |
2.04 |
$ |
0.77 |
Diluted |
$ |
0.72 |
$ |
(0.27) |
$ |
2.02 |
$ |
0.75 |
Weighted average basic number of common shares outstanding |
99,937,437 |
94,287,895 |
95,924,835 |
93,987,980 |
||||
Weighted average number of diluted common shares |
101,009,931 |
95,748,973 |
97,061,136 |
95,515,822 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
Net earnings (loss) including non-controlling interests for the period |
77 |
(23) |
234 |
100 |
Other comprehensive income (loss) |
||||
Items that may be reclassified subsequently to earnings |
||||
Translation adjustments |
||||
Change in foreign currency translation of foreign subsidiaries |
(50) |
(18) |
(7) |
(75) |
Change in foreign currency translation related to net investment hedging activities |
30 |
13 |
3 |
45 |
Cash flow hedges |
||||
Change in fair value of foreign exchange forward contracts |
— |
— |
— |
1 |
Change in fair value of interest rate swaps |
— |
— |
— |
(1) |
Change in fair value of commodity derivative financial instruments |
— |
(1) |
2 |
(2) |
Recovery of (provision for) income taxes |
(2) |
1 |
(2) |
1 |
(22) |
(5) |
(4) |
(31) |
|
Items that are not released to earnings |
||||
Actuarial gain (loss) on employee future benefits |
(3) |
10 |
(22) |
(3) |
Recovery of (provision for) income taxes |
1 |
(2) |
6 |
1 |
(2) |
8 |
(16) |
(2) |
|
Other comprehensive income (loss) |
(24) |
3 |
(20) |
(33) |
Comprehensive income (loss) including non-controlling interests for the period |
53 |
(20) |
214 |
67 |
Comprehensive income attributable to non-controlling interests for the period |
— |
1 |
43 |
14 |
Comprehensive income (loss) attributable to Shareholders for the period |
53 |
(21) |
171 |
53 |
CONSOLIDATED STATEMENTS OF EQUITY
For the year ended December 31, 2020 |
|||||||
(in millions of Canadian dollars) (unaudited) |
CAPITAL |
CONTRIBUTED |
RETAINED |
ACCUMULATED |
TOTAL EQUITY |
NON- |
TOTAL |
Balance - End of previous year, as reported |
491 |
15 |
1,000 |
(17) |
1,489 |
177 |
1,666 |
Business combinations |
— |
— |
3 |
— |
3 |
— |
3 |
Adjusted balance - Beginning of year |
491 |
15 |
1,003 |
(17) |
1,492 |
177 |
1,669 |
Comprehensive income (loss) |
|||||||
Net earnings |
— |
— |
198 |
— |
198 |
36 |
234 |
Other comprehensive income (loss) |
— |
— |
(16) |
(11) |
(27) |
7 |
(20) |
— |
— |
182 |
(11) |
171 |
43 |
214 |
|
Dividends |
— |
— |
(31) |
— |
(31) |
(16) |
(47) |
Issuance of common shares on public offering |
125 |
— |
(4) |
— |
121 |
— |
121 |
Stock options expense |
— |
1 |
— |
— |
1 |
— |
1 |
Issuance of common shares upon |
10 |
(3) |
— |
— |
7 |
— |
7 |
Redemption of common shares |
(4) |
— |
(4) |
— |
(8) |
— |
(8) |
Balance - End of year |
622 |
13 |
1,146 |
(28) |
1,753 |
204 |
1,957 |
For the year ended December 31, 2019 |
|||||||
(in millions of Canadian dollars) (unaudited) |
CAPITAL |
CONTRIBUTED |
RETAINED |
ACCUMULATED |
TOTAL EQUITY |
NON- |
TOTAL |
Balance - End of previous year, as reported |
490 |
16 |
1,000 |
2 |
1,508 |
180 |
1,688 |
Business combinations |
— |
— |
(2) |
— |
(2) |
— |
(2) |
Adjusted balance - End of previous year |
490 |
16 |
998 |
2 |
1,506 |
180 |
1,686 |
New IFRS adoption |
— |
— |
(9) |
— |
(9) |
— |
(9) |
Adjusted balance - Beginning of year |
490 |
16 |
989 |
2 |
1,497 |
180 |
1,677 |
Comprehensive income (loss) |
|||||||
Net earnings |
— |
— |
72 |
— |
72 |
28 |
100 |
Other comprehensive loss |
— |
— |
— |
(19) |
(19) |
(14) |
(33) |
— |
— |
72 |
(19) |
53 |
14 |
67 |
|
Dividends |
— |
— |
(23) |
— |
(23) |
(17) |
(40) |
Issuance of common shares upon |
6 |
(1) |
— |
— |
5 |
— |
5 |
Redemption of common shares |
(5) |
— |
(4) |
— |
(9) |
— |
(9) |
Disposal of a subsidiary |
— |
— |
— |
— |
— |
(1) |
(1) |
Acquisition of non-controlling interests |
— |
— |
(31) |
— |
(31) |
1 |
(30) |
Balance - End of year |
491 |
15 |
1,003 |
(17) |
1,492 |
177 |
1,669 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
Operating activities |
||||
Net earnings (loss) |
73 |
(26) |
198 |
72 |
Adjustments for: |
||||
Financing expense and interest expense (revenue) on employee future benefits and |
16 |
21 |
98 |
143 |
Loss on repurchase of long-term debt |
— |
14 |
6 |
14 |
Depreciation and amortization |
72 |
77 |
299 |
289 |
Loss (gain) on acquisitions, disposals and others |
(38) |
5 |
(43) |
(27) |
Impairment charges and restructuring costs |
21 |
62 |
52 |
68 |
Unrealized loss (gain) on derivative financial instruments |
2 |
2 |
1 |
(2) |
Foreign exchange loss (gain) on long-term debt and financial instruments |
(3) |
1 |
(6) |
(6) |
Provision for (recovery of) income taxes |
21 |
(11) |
45 |
19 |
Fair value revaluation loss on investments |
3 |
— |
3 |
— |
Share of results of associates and joint ventures |
(5) |
(3) |
(14) |
(9) |
Net earnings attributable to non-controlling interests |
4 |
3 |
36 |
28 |
Net financing expense paid |
(6) |
(32) |
(79) |
(133) |
Premium paid on repurchase of long-term debt |
— |
(11) |
(4) |
(11) |
Net income taxes paid |
(10) |
(13) |
(9) |
(27) |
Dividends received |
3 |
6 |
10 |
9 |
Provisions for contengencies and charges and others liabilities |
(7) |
(4) |
(26) |
(26) |
146 |
91 |
567 |
401 |
|
Changes in non-cash working capital components |
60 |
72 |
20 |
59 |
206 |
163 |
587 |
460 |
|
Investing activities |
||||
Disposals of associates and joint ventures |
— |
— |
3 |
1 |
Payments for property, plant and equipment |
(85) |
(73) |
(250) |
(258) |
Proceeds from disposals of property, plant and equipment |
46 |
6 |
55 |
27 |
Change in intangible and other assets |
(5) |
(5) |
(13) |
(8) |
Cash received (paid) for business combinations |
— |
3 |
2 |
(311) |
Proceeds on disposals of a subsidiary, net of cash disposed |
— |
— |
— |
9 |
(44) |
(69) |
(203) |
(540) |
|
Financing activities |
||||
Bank loans and advances |
3 |
(3) |
1 |
(5) |
Change in credit facilities |
(50) |
(278) |
(131) |
39 |
Issuance of unsecured senior notes, net of related expenses |
— |
1,026 |
409 |
1,026 |
Repurchase of unsecured senior notes |
— |
(776) |
(264) |
(776) |
Increase in other long-term debt |
33 |
(1) |
33 |
6 |
Payments of other long-term debt, including lease obligations |
(92) |
(31) |
(156) |
(125) |
Settlement of derivative financial instruments |
— |
— |
1 |
— |
Issuance of common shares on public offering, net of transaction fees |
120 |
— |
120 |
— |
Issuance of common shares upon exercise of stock options |
— |
1 |
7 |
5 |
Redemption of common shares |
(3) |
(1) |
(8) |
(9) |
Payment of other liabilities |
— |
— |
(121) |
— |
Dividends paid to non-controlling interests |
(3) |
(3) |
(16) |
(17) |
Dividends paid to the Corporation's Shareholders |
(9) |
(8) |
(31) |
(23) |
(1) |
(74) |
(156) |
121 |
|
Net change in cash and cash equivalents during the period |
161 |
20 |
228 |
41 |
Currency translation on cash and cash equivalents |
(4) |
(3) |
1 |
(9) |
Cash and cash equivalents - Beginning of the period |
227 |
138 |
155 |
123 |
Cash and cash equivalents - End of the period |
384 |
155 |
384 |
155 |
SEGMENTED INFORMATION
The Corporation analyzes the performance of its operating segments based on their operating income before depreciation and amortization, which is not a measure of performance under International Financial Reporting Standards (IFRS). However, the chief operating decision-maker (CODM) uses this performance measure to assess the operating performance of each reportable segment. Earnings for each segment are prepared on the same basis as those of the Corporation. Intersegment operations are recorded on the same basis as sales to third parties, which are at fair market value. The accounting policies of the reportable segments are the same as the Corporation's accounting policies described in its most recent audited consolidated financial statements for the year ended December 31, 2019.
The Corporation's operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The Chief Executive Officer has authority for resource allocation and management of the Corporation's performance and is therefore the CODM.
The Corporation's operations are managed in four segments: Containerboard, Boxboard Europe and Specialty Products (which constitutes the Corporation's Packaging Products), and Tissue Papers.
SALES TO |
||||||||||
For the 3-month periods ended December 31, |
||||||||||
Canada |
United States |
Italy |
Other countries |
Total |
||||||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
Packaging Products |
||||||||||
Containerboard |
295 |
255 |
205 |
196 |
— |
— |
— |
— |
500 |
451 |
Boxboard Europe |
— |
— |
— |
— |
82 |
62 |
172 |
181 |
254 |
243 |
Specialty Products |
46 |
32 |
76 |
71 |
— |
1 |
1 |
1 |
123 |
105 |
Intersegment sales |
(4) |
(3) |
(2) |
— |
— |
— |
— |
— |
(6) |
(3) |
337 |
284 |
279 |
267 |
82 |
63 |
173 |
182 |
871 |
796 |
|
Tissue Papers |
71 |
65 |
310 |
332 |
— |
— |
— |
— |
381 |
397 |
Intersegment sales and Corporate Activities |
29 |
31 |
3 |
3 |
— |
— |
— |
— |
32 |
34 |
437 |
380 |
592 |
602 |
82 |
63 |
173 |
182 |
1,284 |
1,227 |
SALES TO |
||||||||||
For the years ended December 31, |
||||||||||
Canada |
United States |
Italy |
Other countries |
Total |
||||||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
Packaging Products |
||||||||||
Containerboard |
1,130 |
1,079 |
787 |
746 |
— |
— |
1 |
2 |
1,918 |
1,827 |
Boxboard Europe |
— |
— |
— |
— |
322 |
309 |
730 |
739 |
1,052 |
1,048 |
Specialty Products |
165 |
136 |
305 |
304 |
— |
2 |
3 |
50 |
473 |
492 |
Intersegment sales |
(13) |
(13) |
(5) |
(1) |
— |
— |
— |
— |
(18) |
(14) |
1,282 |
1,202 |
1,087 |
1,049 |
322 |
311 |
734 |
791 |
3,425 |
3,353 |
|
Tissue Papers |
278 |
257 |
1,336 |
1,242 |
— |
— |
1 |
10 |
1,615 |
1,509 |
Intersegment sales and Corporate Activities |
115 |
124 |
2 |
10 |
— |
— |
— |
— |
117 |
134 |
1,675 |
1,583 |
2,425 |
2,301 |
322 |
311 |
735 |
801 |
5,157 |
4,996 |
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION |
||||
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
Packaging Products |
||||
Containerboard |
150 |
98 |
436 |
443 |
Boxboard Europe |
18 |
8 |
122 |
92 |
Specialty Products |
15 |
9 |
58 |
52 |
183 |
115 |
616 |
587 |
|
Tissue Papers |
27 |
(3) |
145 |
67 |
Corporate Activities |
(29) |
(36) |
(96) |
(104) |
Operating income before depreciation and amortization |
181 |
76 |
665 |
550 |
Depreciation and amortization |
(72) |
(77) |
(299) |
(289) |
Financing expense and interest expense (revenue) on employee future benefits and other |
(16) |
(21) |
(98) |
(143) |
Loss on repurchase of long-term debt |
— |
(14) |
(6) |
(14) |
Foreign exchange gain (loss) on long-term debt and financial instruments |
3 |
(1) |
6 |
6 |
Fair value revaluation loss on investments |
(3) |
— |
(3) |
— |
Share of results of associates and joint ventures |
5 |
3 |
14 |
9 |
Earnings (loss) before income taxes |
98 |
(34) |
279 |
119 |
PAYMENTS FOR PROPERTY, PLANT AND EQUIPMENT |
||||
For the 3-month periods ended |
For the years ended |
|||
(in millions of Canadian dollars) (unaudited) |
2020 |
2019 |
2020 |
2019 |
Packaging Products |
||||
Containerboard |
44 |
28 |
111 |
83 |
Boxboard Europe |
18 |
15 |
41 |
56 |
Specialty Products |
10 |
9 |
25 |
20 |
72 |
52 |
177 |
159 |
|
Tissue Papers |
42 |
36 |
104 |
110 |
Corporate Activities |
10 |
8 |
26 |
48 |
Total acquisitions |
124 |
96 |
307 |
317 |
Proceeds from disposals of property, plant and equipment |
(46) |
(6) |
(55) |
(27) |
Right-of-use assets acquisitions and acquisitions included in other debts |
(27) |
(8) |
(63) |
(50) |
51 |
82 |
189 |
240 |
|
Acquisitions for property, plant and equipment included in "Trade and other payables" |
||||
Beginning of year |
28 |
31 |
46 |
37 |
End of year |
(40) |
(46) |
(40) |
(46) |
Payments for property, plant and equipment net of proceeds from disposals |
39 |
67 |
195 |
231 |
SUPPLEMENTAL INFORMATION ON NON-IFRS MEASURES
SPECIFIC ITEMS
The Corporation incurs some specific items that adversely or positively affect its operating results. We believe it is useful for readers to be aware of these items as they provide additional information to measure performance, compare the Corporation's results between periods, and assess operating results and liquidity, notwithstanding these specific items. Management believes these specific items are not necessarily reflective of the Corporation's underlying business operations in measuring and comparing its performance and analyzing future trends. Our definition of specific items may differ from those of other corporations and some of them may arise in the future and may reduce the Corporation's available cash.
They include, but are not limited to, charges for (reversals of) impairment of assets, restructuring gains or costs, loss on refinancing and repurchase of long-term debt, some deferred tax asset provisions or reversals, premiums paid on repurchase of long-term debt, gains or losses on the acquisition or sale of a business unit, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate swaps and option fair value revaluation, foreign exchange gains or losses on long-term debt and financial instruments, fair value revaluation gain or losses on investments, specific items of discontinued operations and other significant items of an unusual, non-cash or non-recurring nature.
RECONCILIATION OF NON-IFRS MEASURES
To provide more information for evaluating the Corporation's performance, the financial information included in this analysis contains certain data that are not performance measures under IFRS ("non-IFRS measures"), which are also calculated on an adjusted basis to exclude specific items. We believe that providing certain key performance measures and non-IFRS measures is useful to both Management and investors, as they provide additional information to measure the performance and financial position of the Corporation. This also increases the transparency and clarity of the financial information. The following non-IFRS measures are used in our financial disclosures:
- Operating income before depreciation and amortization (OIBD): Used to assess operating performance and the contribution of each segment when excluding depreciation and amortization. OIBD is widely used by investors as a measure of a corporation's ability to incur and service debt and as an evaluation metric.
- Adjusted OIBD: Used to assess operating performance and the contribution of each segment on a comparable basis.
- Adjusted operating income: Used to assess operating performance of each segment on a comparable basis.
- Adjusted net earnings: Used to assess the Corporation's consolidated financial performance on a comparable basis.
- Adjusted free cash flow: Used to assess the Corporation's capacity to generate cash flows to meet financial obligations and/or discretionary items such as share repurchase, dividend increase and strategic investments.
- Net debt to adjusted OIBD ratio: Used to measure the Corporation's credit performance and evaluate financial leverage.
- Net debt to adjusted OIBD ratio on a pro-forma basis: Used to measure the Corporation's credit performance and evaluate the financial leverage on a comparable basis, including significant business acquisitions and excluding significant business disposals, if any.
Non-IFRS measures are mainly derived from the consolidated financial statements, but do not have meanings prescribed by IFRS. These measures have limitations as an analytical tool and should not be considered on their own or as a substitute for an analysis of our results as reported under IFRS. In addition, our definitions of non-IFRS measures may differ from those of other corporations. Any such modification or reformulation may be significant.
The reconciliation of operating income (loss) to OIBD, to adjusted operating income (loss) and to adjusted OIBD by business segment is as follows:
Q4 2020 |
||||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Boxboard Europe |
Specialty Products |
Tissue Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
122 |
5 |
12 |
10 |
(40) |
109 |
Depreciation and amortization |
28 |
13 |
3 |
17 |
11 |
72 |
Operating income (loss) before depreciation and amortization |
150 |
18 |
15 |
27 |
(219) |
181 |
Specific items: |
||||||
Loss (gain) on acquisitions, disposals and others |
(40) |
— |
— |
2 |
— |
(38) |
Impairment charges (reversals) |
(2) |
9 |
— |
5 |
1 |
13 |
Restructuring costs |
— |
— |
— |
6 |
2 |
8 |
Unrealized loss on derivative financial instruments |
2 |
— |
— |
— |
— |
2 |
(40) |
9 |
— |
13 |
3 |
(15) |
|
Adjusted operating income (loss) before depreciation and amortization |
110 |
27 |
15 |
40 |
(26) |
166 |
Adjusted operating income (loss) |
82 |
14 |
12 |
23 |
(37) |
94 |
Q3 2020 |
||||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Boxboard Europe |
Specialty Products |
Tissue 111Papers |
Corporate Activities |
Consolidated |
Operating income (loss) |
71 |
19 |
11 |
3 |
(31) |
73 |
Depreciation and amortization |
30 |
12 |
5 |
22 |
12 |
81 |
Operating income (loss) before depreciation and amortization |
101 |
31 |
16 |
25 |
(19) |
154 |
Specific items : |
||||||
Gain on acquisitions, disposals and others |
(5) |
— |
— |
(2) |
— |
(7) |
Impairment charges |
— |
— |
— |
13 |
— |
13 |
Restructuring costs |
3 |
— |
— |
— |
— |
3 |
Unrealized loss (gain) on derivative financial instruments |
1 |
(2) |
— |
— |
— |
(1) |
(1) |
(2) |
— |
11 |
— |
8 |
|
Adjusted operating income (loss) before depreciation and amortization |
100 |
29 |
16 |
36 |
(19) |
162 |
Adjusted operating income (loss) |
70 |
17 |
11 |
14 |
(31) |
81 |
Q4 2019 |
||||||
(in millions of Canadian dollars) (unaudited) |
Containerboard |
Boxboard Europe |
Specialty Products |
Tissue Papers1 |
Corporate Activities |
Consolidated |
Operating income (loss) |
69 |
(6) |
5 |
(21) |
(48) |
(1) |
Depreciation and amortization |
29 |
14 |
4 |
18 |
12 |
77 |
Operating income (loss) before depreciation and amortization |
98 |
8 |
9 |
(3) |
(36) |
76 |
Specific items: |
||||||
Loss on acquisitions, disposals and others |
4 |
— |
— |
— |
1 |
5 |
Inventory adjustment resulting from business acquisition |
— |
— |
— |
2 |
— |
2 |
Impairment charges |
2 |
14 |
— |
34 |
14 |
64 |
Restructuring costs |
1 |
— |
— |
2 |
— |
3 |
Unrealized loss (gain) on derivative financial instruments |
1 |
2 |
— |
— |
(1) |
2 |
8 |
16 |
— |
38 |
14 |
76 |
|
Adjusted operating income (loss) before depreciation and amortization |
106 |
24 |
9 |
35 |
(22) |
152 |
Adjusted operating income (loss) |
77 |
10 |
5 |
17 |
(34) |
75 |
Net earnings (loss), as per IFRS, is reconciled below with operating income, adjusted operating income and adjusted operating income before depreciation and amortization:
(in millions of Canadian dollars) (unaudited) |
2020 |
20191 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
Net earnings (loss) attributable to Shareholders for the period |
198 |
72 |
73 |
49 |
(26) |
Net earnings attributable to non-controlling interests |
36 |
28 |
4 |
9 |
3 |
Provision for (recovery of) income taxes |
45 |
19 |
21 |
(3) |
(11) |
Fair value revaluation loss on investments |
3 |
— |
3 |
— |
— |
Share of results of associates and joint ventures |
(14) |
(9) |
(5) |
(3) |
(3) |
Foreign exchange loss (gain) on long-term debt and financial instruments |
(6) |
(6) |
(3) |
(11) |
1 |
Financing expense and interest expense (revenue) on employee future benefits and other liabilities and |
104 |
157 |
16 |
32 |
42 |
Operating income |
366 |
261 |
109 |
73 |
6 |
Specific items: |
|||||
Loss (gain) on acquisitions, disposals and others |
(43) |
(24) |
(38) |
(7) |
5 |
Inventory adjustment resulting from business acquisition |
— |
2 |
— |
— |
2 |
Impairment charges |
39 |
69 |
13 |
13 |
64 |
Restructuring costs |
13 |
9 |
8 |
3 |
3 |
Unrealized loss (gain) on derivative financial instruments |
1 |
(2) |
2 |
(1) |
2 |
10 |
54 |
(15) |
8 |
76 |
|
Adjusted operating income |
376 |
315 |
94 |
81 |
82 |
Depreciation and amortization |
299 |
289 |
72 |
81 |
77 |
Adjusted operating income before depreciation and amortization |
675 |
604 |
166 |
162 |
159 |
1 |
2019 third quarter consolidated results have been adjusted to reflect retrospective adjustments of purchase price allocation. |
The following table reconciles net earnings (loss) and net earnings (loss) per share, as per IFRS, with adjusted net earnings and adjusted net earnings per share:
(in millions of Canadian dollars, except amounts per share) (unaudited) |
NET EARNINGS (LOSS) |
NET EARNINGS (LOSS) PER SHARE 1 |
||||||||||||||
2020 |
20192 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
2020 |
20192 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
|||||||
As per IFRS |
198 |
72 |
73 |
49 |
(26) |
$ |
2.04 |
$ |
0.77 |
$ |
0.72 |
$ |
0.51 |
$ |
(0.27) |
|
Specific items: |
||||||||||||||||
Loss (gain) on acquisitions, disposals and others |
(43) |
(24) |
(38) |
(7) |
5 |
$ |
(0.38) |
$ |
(0.28) |
$ |
(0.34) |
$ |
(0.05) |
$ |
0.04 |
|
Inventory adjustment resulting from business acquisition |
— |
2 |
— |
— |
2 |
— |
$ |
0.02 |
— |
— |
$ |
0.02 |
||||
Impairment charges |
39 |
69 |
13 |
13 |
64 |
$ |
0.29 |
$ |
0.53 |
$ |
0.09 |
$ |
0.10 |
$ |
0.49 |
|
Restructuring costs |
13 |
9 |
8 |
3 |
3 |
$ |
0.10 |
$ |
0.07 |
$ |
0.05 |
$ |
0.03 |
$ |
0.02 |
|
Unrealized loss (gain) on derivative financial instruments |
1 |
(2) |
2 |
(1) |
2 |
$ |
0.02 |
$ |
(0.02) |
$ |
0.02 |
— |
$ |
0.01 |
||
Loss on repurchase of long-term debt |
6 |
14 |
— |
6 |
14 |
$ |
0.05 |
$ |
0.11 |
— |
$ |
0.05 |
$ |
0.11 |
||
Unrealized gain on interest rate swaps and option fair value |
(11) |
— |
(11) |
— |
(1) |
$ |
(0.12) |
— |
$ |
(0.12) |
— |
$ |
(0.01) |
|||
Foreign exchange loss (gain) on long-term debt |
(6) |
(6) |
(3) |
(11) |
1 |
$ |
(0.05) |
$ |
(0.06) |
$ |
(0.02) |
$ |
(0.12) |
$ |
0.01 |
|
Fair value revaluation loss on investments |
3 |
— |
3 |
— |
— |
$ |
0.02 |
— |
$ |
0.02 |
— |
— |
||||
Tax effect on specific items, other tax adjustments |
(13) |
(38) |
(5) |
(4) |
(35) |
$ |
(0.02) |
$ |
(0.12) |
— |
$ |
(0.02) |
$ |
(0.12) |
||
(11) |
24 |
(31) |
(1) |
55 |
$ |
(0.09) |
$ |
0.25 |
$ |
(0.30) |
$ |
(0.01) |
$ |
0.57 |
||
Adjusted |
187 |
96 |
42 |
48 |
29 |
$ |
1.95 |
$ |
1.02 |
$ |
0.42 |
$ |
0.50 |
$ |
0.30 |
1 |
Specific amounts per share are calculated on an after-tax basis and are net of the portion attributable to non-controlling interests. Per share amounts in line item ''Tax effect on specific items, other tax adjustments and attributable to non-controlling interests'' only include the effect of tax adjustments. |
2 |
2019 third quarter consolidated results have been adjusted to reflect retrospective adjustments of purchase price allocation. |
The following table reconciles cash flow from operating activities with operating income and operating income before depreciation and amortization:
(in millions of Canadian dollars) (unaudited) |
2020 |
20191 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
Cash flow from operating activities |
587 |
460 |
206 |
136 |
163 |
Changes in non-cash working capital components |
(20) |
(59) |
(60) |
(30) |
(72) |
Depreciation and amortization |
(299) |
(289) |
(72) |
(81) |
(77) |
Net income taxes paid |
9 |
27 |
10 |
1 |
13 |
Net financing expense paid |
79 |
133 |
6 |
49 |
32 |
Premium paid on long-term debt repurchase |
4 |
11 |
— |
4 |
11 |
Gain (loss) on acquisitions, disposals and others |
43 |
27 |
38 |
7 |
(5) |
Impairment charges and restructuring costs |
(52) |
(68) |
(21) |
(16) |
(62) |
Unrealized gain (loss) on derivative financial instruments |
(1) |
2 |
(2) |
1 |
(2) |
Dividend received, employee future benefits and others |
16 |
17 |
4 |
2 |
(2) |
Operating income |
366 |
261 |
109 |
73 |
(1) |
Depreciation and amortization |
299 |
289 |
72 |
81 |
77 |
Operating income before depreciation and amortization |
665 |
550 |
181 |
154 |
76 |
1 |
2019 third quarter consolidated results have been adjusted to reflect retrospective adjustments of purchase price allocation |
The following table reconciles cash flow from operating activities with cash flow from operating activities (excluding changes in non-cash working capital components) and adjusted cash flow from operating activities. It also reconciles adjusted cash flow from operating activities to adjusted free cash flow, which is also calculated on a per share basis:
(in millions of Canadian dollars, except amount per share or otherwise mentioned) (unaudited) |
2020 |
2019 |
Q4 2020 |
Q3 2020 |
Q4 2019 |
|||||
Cash flow from operating activities |
587 |
460 |
206 |
136 |
163 |
|||||
Changes in non-cash working capital components |
(20) |
(59) |
(60) |
(30) |
(72) |
|||||
Cash flow from operating activities (excluding changes in non-cash working |
567 |
401 |
146 |
106 |
91 |
|||||
Specific items paid |
15 |
24 |
6 |
9 |
16 |
|||||
Adjusted cash flow from operating activities |
582 |
425 |
152 |
115 |
107 |
|||||
Capital expenditures & other assets1 and right-of-use assets payments, net of disposals |
(250) |
(278) |
(55) |
(60) |
(80) |
|||||
Dividends paid to the Corporation's Shareholders and to non-controlling interests |
(47) |
(40) |
(12) |
(11) |
(11) |
|||||
Adjusted free cash flow |
285 |
107 |
85 |
44 |
16 |
|||||
Adjusted free cash flow per share |
$ |
2.97 |
$ |
1.14 |
$ |
0.85 |
$ |
0.46 |
$ |
0.17 |
Weighted average basic number of shares outstanding |
95,924,835 |
93,987,980 |
99,937,437 |
95,019,694 |
94,287,895 |
|||||
1 |
Excluding increase in investments |
The following table reconciles total debt and net debt with the ratio of net debt to adjusted operating income before depreciation and amortization (adjusted OIBD):
(in millions of Canadian dollars) |
December 31, 2020 |
September 30, 2020 |
December 31, 2019 |
Long-term debt |
1,949 |
1,947 |
2,022 |
Current portion of long-term debt |
102 |
253 |
85 |
Bank loans and advances |
12 |
9 |
11 |
Total debt |
2,063 |
2,209 |
2,118 |
Less: Cash and cash equivalents |
384 |
227 |
155 |
Net debt |
1,679 |
1,982 |
1,963 |
Adjusted OIBD (last twelve months) |
675 |
661 |
604 |
Net debt / Adjusted OIBD ratio |
2.5 x |
3.0 x |
3.3 x |
Source:
Allan Hogg
Vice-President and Chief Financial Officer
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SOURCE Cascades Inc.
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