A stronger end to a challenging
year
KINGSEY
FALLS, QC, Feb. 23, 2023 /CNW/ - Cascades Inc.
(TSX: CAS) reports its unaudited financial results for the
three-month period and fiscal year ended December 31, 2022.
Q4 2022 Highlights
- Sales of $1,135 million (compared
with $1,174 million in Q3 2022 and
$1,028 million in Q4 2021)
- As reported
-
- Operating loss of $(20) million
(compared with $25 million in Q3 2022
and $(90) million in Q4 2021)
- Net loss per common share of $(0.27) (compared with a net loss per common
share of ($0.02) in Q3 2022 and net
earnings per common share of $1.04 in
Q4 2021)
- Adjusted (excluding specific items1)
-
- Earnings before interest, taxes, depreciation and amortization
(EBITDA (A)) of $116 million
(compared with $111 million in Q3
2022 and $62 million in Q4 2021)
- Net earnings per common share of $0.22 (compared with net earnings per common
share of $0.20 in Q3 2022 and a net
loss per common share of ($0.09) in
Q4 2021)
2022 Annual Highlights
- Sales of $4,466 million (compared
with $3,956 million in 2021)
- As reported
-
- Operating income of $33 million
(compared with $50 million in
2021)
- Net loss per common share of $(0.34) (compared with net earnings per common
share of $1.60 in 2021)
- Adjusted (excluding specific items1)
-
- Earnings before interest, taxes, depreciation and amortization
(EBITDA (A)) of $376 million
(compared with $389 million in
2021)
- Net earnings per common share of $0.37 (compared with net earnings per common
share of $0.26 in 2021)
- Net debt1 of $1,966
million as of December 31,
2022 (compared with $2,011
million as of September 30,
2022). Net debt to adjusted EBITDA (A) ratio1 of
5.2x, down from 6.2x as of September 30,
2022.
- Total capital expenditures, net of disposals, of $149 million in Q4 2022 and $482 million in 2022. Forecasted 2023 net capital
expenditures of approximately $325
million, including $175
million for the Bear Island
containerboard conversion project in Virginia, USA.
Mario Plourde, President and CEO,
commented: "We are pleased with our fourth quarter consolidated
performance, which showed continued positive momentum in our Tissue
Papers segment, and good underlying performance in our packaging
segments. The wide-ranging profitability and operational
initiatives that we have been progressively implementing throughout
our operations gained traction as the year progressed, and fuelled
the 10.2% consolidated EBITDA (A) margins in Q4. Our operations
have faced more than $475 million of
production, raw material, freight and energy cost headwinds within
the span of the calendar year 2022 alone, and our teams have done
an excellent job at executing multiple countermeasures. These have
taken longer in our Tissue Papers segment, where price rebalancing
takes time to be realized, but we are encouraged by the progress
being made and expect continued benefits to be generated from
operational and profitability initiatives across our
operations.
1 Some
information represents Non-IFRS financial measures, other financial
measures or Non-IFRS ratios which are not standardized under IFRS
and therefore might not be comparable to similar financial measures
disclosed by other corporations. Please refer to the "Supplemental
Information on Non-IFRS Measures and Other Financial Measures"
section for a complete reconciliation.
|
Our Containerboard segment generated solid results in the fourth
quarter. As expected, sales decreased 5% sequentially, reflecting
slightly softer shipment levels and average selling prices. These
impacts were more than mitigated at the EBITDA (A) level by
benefits from lower raw material pricing, more favourable FX,
production and energy cost levels, and a $5
million partial insurance settlement related to water
effluent treatment issues that occurred at our Niagara Falls, NY complex in mid-2021.
Sequentially, fourth quarter sales levels also decreased for our
Specialty Products business, largely driven by lower volumes in the
cardboard and plastics sub-segments, resulting in lower
EBITDA (A) levels for this business. Sales in our Tissue
Papers segment were stable sequentially. This reflected higher
selling prices and favourable FX, offset by lower volumes. This
business doubled its EBITDA (A) as benefits from lower
transportation costs, lower raw material costs and pricing
initiatives mitigated the impact from lower volumes and higher
production costs, the latter of which includes the impact of the
temporary curtailment of one of our paper machines at our
St. Helens, Oregon tissue facility
since mid-September. Lastly, Corporate Activities generated a
higher negative EBITDA (A) in the fourth quarter, a reflection of
the impact that lower recycled paper prices and volume had on
results in the Company's Recovery & Recycling operations.
The start-up of the Bear Island
project is scheduled for the end of March. Capital investments for
this project totaled $107 million in
the fourth quarter and $335 million
in the calendar year 2022. The Company expects to invest
$175 million to complete the project
in 2023, with these investments weighted to the first half of the
year. As we have stated previously, the elevated capital investment
levels for this project combined with lower profitability levels
generated by our Tissue Papers segment resulted in an important
increase in our leverage ratio in 2022. We expect this trend to
reverse as production is ramped up at our Bear Island facility, and operational and
financial performance of our Tissue Papers segment continue to
improve."
Discussing near-term outlook, Mr. Plourde commented, "We are
remaining prudent in our outlook, as macro-economic conditions
continue to be challenging and unpredictable, and inflationary
pressures on costs, while easing, continue. Despite this, we have
started 2023 in a good position to drive growth throughout the
year. We expect sequentially lower results in our Containerboard
segment in Q1. This reflects the $5 million partial insurance
settlement received in the current quarter and a continuation of
slightly softer volume and selling prices, the impacts of which
will not be offset by lower raw material cost tailwinds. The
Specialty Products business is expected to generate moderately
stronger results in the first quarter, as favourable trends in
pricing and volume counter the persistently higher production cost
environment. Lastly, we expect results in our Tissue Papers segment
to slightly improve sequentially. While we anticipate continued
positive momentum from operational and profitability initiatives,
more favourable raw material prices, and good demand from retail
tissue products, our tempered outlook for this segment reflects
softer demand for Away-from-Home products, and the delayed restart
of the machine at our St. Helens,
Oregon facility that occurred on February 10. As far as our longer-term outlook,
we will provide a comprehensive update of our 2022- 2024 Strategic
Plan in conjunction with our Q1 2023 results on
May 11, 2023."
Financial Summary
Selected consolidated information
(in millions of
Canadian dollars, except amounts per common share)
(unaudited)
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
|
|
|
|
|
|
Sales
|
4,466
|
3,956
|
1,135
|
1,174
|
1,028
|
As
Reported
|
|
|
|
|
|
Operating income
(loss)
|
33
|
50
|
(20)
|
25
|
(90)
|
Net earnings
(loss)
|
(34)
|
162
|
(27)
|
(2)
|
105
|
per common share
(basic)
|
($0.34)
|
$1.60
|
($0.27)
|
($0.02)
|
$1.04
|
Adjusted1
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA
(A))
|
376
|
389
|
116
|
111
|
62
|
Net earnings
(loss)
|
37
|
27
|
22
|
20
|
(9)
|
per common share
(basic)
|
$0.37
|
$0.26
|
$0.22
|
$0.20
|
($0.09)
|
Margin EBITDA
(A)
|
8.4 %
|
9.8 %
|
10.2 %
|
9.5 %
|
6.0 %
|
Segmented sales
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
|
|
|
|
|
|
Packaging
Products
|
|
|
|
|
|
Containerboard
|
2,265
|
2,009
|
567
|
595
|
502
|
Specialty
Products
|
654
|
548
|
161
|
168
|
151
|
Inter-segment
sales
|
(36)
|
(32)
|
(7)
|
(11)
|
(8)
|
|
2,883
|
2,525
|
721
|
752
|
645
|
Tissue
Papers
|
1,422
|
1,272
|
384
|
382
|
339
|
Inter-segment sales and
Corporate Activities
|
161
|
159
|
30
|
40
|
44
|
Sales
|
4,466
|
3,956
|
1,135
|
1,174
|
1,028
|
1 Please
refer to the "Supplemental Information on Non-IFRS Measures and
Other Financial Measures" section for a complete
reconciliation.
|
Segmented EBITDA (A)1
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
|
|
|
|
|
|
Packaging
Products
|
|
|
|
|
|
Containerboard
|
401
|
372
|
119
|
103
|
70
|
Specialty
Products
|
92
|
74
|
20
|
25
|
21
|
|
|
|
|
|
|
Tissue
Papers
|
(13)
|
27
|
8
|
4
|
(6)
|
|
|
|
|
|
|
Corporate
Activities
|
(104)
|
(84)
|
(31)
|
(21)
|
(23)
|
EBITDA
(A)1
|
376
|
389
|
116
|
111
|
62
|
Analysis of results for the three-month period ended
December 31, 2022 (compared to the same period last
year)
Sales of $1,135
million increased by $107
million compared with the same period last year. This
reflects $139 million of combined benefits from improvements
in selling prices and sales mix in all business segments. The
Canadian dollar - US dollar exchange rate was also favourable for
all businesses, contributing $54 million to sales levels on a
consolidated basis. These factors were partially offset by a
$73 million impact related to lower volumes mainly in the
Tissue Papers business segment.
The fourth quarter EBITDA (A)1 totaled $116 million, an increase of $54 million, or
87%, from the $62 million generated
in the same period last year. This increase reflects the net
consolidated benefits of $106 million related to price
increases and changes in sales volumes and product assortment sold,
and $7 million from more favourable raw material and FX. These
benefits outweighed higher production, energy and logistics costs
in all segments, and a negative contribution from Recovery &
Recycling operations as a result of lower volume and recycled paper
prices.
The main specific items, before income taxes, that impacted our
fourth quarter 2022 operating loss and/or net loss were:
- $8 million impairment charge on
property, plant and equipment for Containerboard Packaging plants
(operating loss and net loss);
- $3 million impairment charge on
goodwill in the Specialty Products segment (operating loss and net
loss);
- $75 million impairment charge on
property, plant and equipment for Tissue Papers plants in USA
(operating loss and net loss);
- $10 million gain from the sale of
land related to a closed Specialty Products plant in Canada (operating loss and net loss);
- $2 million restructuring costs in
the Tissue Papers segment (operating loss and net loss);
- $4 million unrealized gain on
financial instruments (operating loss and net loss);
- $3 million foreign exchange gain
on long-term debt and financial instruments (net loss);
- $3 million deferred tax benefit
as a result of a tax election related to the discontinued
operations realized in 2021 (net loss).
For the 3-month period ended December 31, 2022, the
Corporation posted a net loss of $(27)
million, or $(0.27) per common
share, compared to net earnings of $105
million, or $1.04 per common
share, in the same period of 2021. On an adjusted
basis1, the Corporation generated net earnings of
$22 million in the fourth quarter of 2022, or $0.22 per common share, compared to a net loss of
$(9) million, or ($0.09) per common share, in the same period
of 2021.
1 Please
refer to the "Supplemental Information on Non-IFRS Measures and
Other Financial Measures" section for a complete
reconciliation.
|
Dividend on common shares and normal course issuer bid
The
Board of Directors of Cascades declared a quarterly dividend of
$0.12 per common share to be paid on
March 23, 2023 to shareholders of
record at the close of business on March 9,
2023. This dividend is an "eligible dividend" as per the
Income Tax Act (R.C.S. (1985), Canada). During the fourth quarter of 2022,
Cascades purchased no common shares for cancellation.
2022 Fourth Quarter Results Conference Call
Details
Management will discuss the 2022 fourth quarter
financial results during a conference call today at 9:00 a.m. EDT. The call can be accessed by
dialing 1-888-390-0620 (international 1-416-764-8651). 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 23, 2023 by dialing
1-888-390-0541 (international 1-416-764-8677), access code
473784.
Founded in 1964, Cascades offers sustainable, innovative and
value-added packaging, hygiene and recovery solutions. The company
employs approximately 10,000 women and men across a network of
close to 80 facilities in North
America. 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 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.
CONSOLIDATED BALANCE SHEETS
(in millions of
Canadian dollars) (unaudited)
|
December 31,
2022
|
December 31,
2021
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
102
|
174
|
Accounts
receivable
|
556
|
510
|
Current income tax
assets
|
11
|
19
|
Inventories
|
587
|
494
|
Current portion of
financial assets
|
9
|
1
|
|
1,265
|
1,198
|
Long-term
assets
|
|
|
Investments in
associates and joint ventures
|
94
|
87
|
Property, plant and
equipment
|
2,945
|
2,522
|
Intangible assets with
finite useful life
|
73
|
88
|
Financial
assets
|
4
|
6
|
Other assets
|
70
|
54
|
Deferred income tax
assets
|
114
|
138
|
Goodwill and other
intangible assets with indefinite useful life
|
488
|
473
|
|
5,053
|
4,566
|
Liabilities and
Equity
|
|
|
Current
liabilities
|
|
|
Bank loans and
advances
|
3
|
1
|
Trade and other
payables
|
746
|
707
|
Current income tax
liabilities
|
4
|
12
|
Current portion of
other debts without recourse to the Corporation to be
refinanced
|
67
|
—
|
Current portion of
long-term debt
|
67
|
74
|
Current portion of
provisions for contingencies and charges
|
8
|
12
|
Current portion of
financial liabilities and other liabilities
|
22
|
16
|
|
917
|
822
|
Long-term
liabilities
|
|
|
Long-term
debt
|
1,931
|
1,450
|
Provisions for
contingencies and charges
|
41
|
47
|
Financial
liabilities
|
7
|
6
|
Other
liabilities
|
97
|
122
|
Deferred income tax
liabilities
|
132
|
192
|
|
3,125
|
2,639
|
Equity
|
|
|
Capital
stock
|
611
|
614
|
Contributed
surplus
|
14
|
14
|
Retained
earnings
|
1,212
|
1,274
|
Accumulated other
comprehensive income (loss)
|
34
|
(23)
|
Equity attributable
to Shareholders
|
1,871
|
1,879
|
Non-controlling
interests
|
57
|
48
|
Total
equity
|
1,928
|
1,927
|
|
5,053
|
4,566
|
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
|
For the 3-month
periods
ended December 31,
|
For the years
ended December 31,
|
(in millions of
Canadian dollars, except per common share amounts and number of
common shares) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
Sales
|
1,135
|
1,028
|
4,466
|
3,956
|
|
|
|
|
|
Supply chain and
logistic
|
694
|
660
|
2,836
|
2,382
|
Wages and employee
benefits expenses
|
256
|
244
|
992
|
947
|
Depreciation and
amortization
|
62
|
60
|
252
|
252
|
Maintenance and
repair
|
59
|
45
|
217
|
184
|
Other
|
10
|
17
|
45
|
54
|
Impairment
charges
|
86
|
88
|
102
|
89
|
Gain on acquisitions,
disposals and others
|
(10)
|
(1)
|
(20)
|
(40)
|
Restructuring
costs
|
2
|
6
|
3
|
21
|
Unrealized loss (gain)
on derivative financial instruments
|
(4)
|
(1)
|
6
|
17
|
Operating income
(loss)
|
(20)
|
(90)
|
33
|
50
|
Financing
expense
|
20
|
42
|
88
|
106
|
Share of results of
associates and joint ventures
|
(4)
|
(7)
|
(19)
|
(18)
|
Loss before income
taxes
|
(36)
|
(125)
|
(36)
|
(38)
|
Provision for
(recovery of) income taxes
|
(16)
|
(29)
|
(22)
|
9
|
Net loss from
continuing operations including non-controlling interests for
the period
|
(20)
|
(96)
|
(14)
|
(47)
|
Results from
discontinued operations
|
—
|
204
|
—
|
234
|
Net earnings (loss)
including non-controlling interests for the period
|
(20)
|
108
|
(14)
|
187
|
Net earnings
attributable to non-controlling interests
|
7
|
3
|
20
|
25
|
Net earnings (loss)
attributable to Shareholders for the period
|
(27)
|
105
|
(34)
|
162
|
Net loss from
continuing operations per common share
|
|
|
|
|
Basic
|
($0.27)
|
($0.98)
|
($0.34)
|
($0.59)
|
Diluted
|
($0.27)
|
($0.98)
|
($0.34)
|
($0.59)
|
Net earnings (loss)
per common share
|
|
|
|
|
Basic
|
($0.27)
|
$1.04
|
($0.34)
|
$1.60
|
Diluted
|
($0.27)
|
$1.03
|
($0.34)
|
$1.59
|
Weighted average
basic number of common shares outstanding
|
100,361,627
|
100,858,870
|
100,647,972
|
101,884,051
|
Weighted average
number of diluted common shares
|
100,579,927
|
101,746,156
|
101,092,352
|
102,902,364
|
|
|
|
|
|
Net earnings (loss)
attributable to Shareholders:
|
|
|
|
|
Continuing
operations
|
(27)
|
(99)
|
(34)
|
(59)
|
Discontinued
operations
|
—
|
204
|
—
|
221
|
Net earnings
(loss)
|
(27)
|
105
|
(34)
|
162
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
For the 3-month
periods ended December 31,
|
For the years
ended December 31,
|
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
Net earnings (loss)
including non-controlling interests for the period
|
(20)
|
108
|
(14)
|
187
|
Other comprehensive
income (loss)
|
|
|
|
|
Items that may be
reclassified subsequently to earnings
|
|
|
|
|
Translation
adjustments
|
|
|
|
|
Change in foreign
currency translation of foreign subsidiaries
|
(25)
|
(5)
|
78
|
(8)
|
Change in foreign
currency translation of foreign subsidiaries from discontinued
operations
|
—
|
3
|
—
|
(18)
|
Change in foreign
currency translation related to net investment hedging
activities
|
7
|
8
|
(23)
|
11
|
Change in foreign
currency translation related to net investment hedging activities
from discontinued operations
|
—
|
(3)
|
—
|
9
|
Cash flow
hedges
|
|
|
|
|
Change in fair value
of commodity derivative financial instruments
|
(7)
|
(3)
|
3
|
2
|
Recovery of
(provision for) income taxes
|
1
|
—
|
2
|
(2)
|
Recovery of
(provision for) income taxes from discontinued
operations
|
—
|
1
|
—
|
(1)
|
|
(24)
|
1
|
60
|
(7)
|
Items that are not
released to earnings
|
|
|
|
|
Actuarial gain on
employee future benefits
|
4
|
—
|
33
|
29
|
Provision for income
taxes
|
—
|
—
|
(8)
|
(7)
|
|
4
|
—
|
25
|
22
|
Other comprehensive
income (loss)
|
(20)
|
1
|
85
|
15
|
Comprehensive income
(loss) including non-controlling interests for the
period
|
(40)
|
109
|
71
|
202
|
Comprehensive income
attributable to non-controlling interests for
the period
|
6
|
—
|
23
|
13
|
Comprehensive income
(loss) attributable to Shareholders for
the period
|
(46)
|
109
|
48
|
189
|
Comprehensive income
(loss) attributable to Shareholders:
|
|
|
|
|
Continuing
operations
|
(46)
|
(98)
|
48
|
(33)
|
Discontinued
operations
|
—
|
207
|
—
|
222
|
Comprehensive income
(loss)
|
(46)
|
109
|
48
|
189
|
CONSOLIDATED STATEMENTS OF EQUITY
|
For the year ended
December 31, 2022
|
(in millions of
Canadian dollars)
|
CAPITAL
STOCK
|
CONTRIBUTED
SURPLUS
|
RETAINED
EARNINGS
|
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME (LOSS)
|
TOTAL EQUITY
ATTRIBUTABLE TO
SHAREHOLDERS
|
NON-
CONTROLLING
INTERESTS
|
TOTAL
EQUITY
|
Balance - Beginning
of year
|
614
|
14
|
1,274
|
(23)
|
1,879
|
48
|
1,927
|
Comprehensive
income
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
—
|
—
|
(34)
|
—
|
(34)
|
20
|
(14)
|
Other comprehensive
income
|
—
|
—
|
25
|
57
|
82
|
3
|
85
|
|
—
|
—
|
(9)
|
57
|
48
|
23
|
71
|
Dividends
|
—
|
—
|
(48)
|
—
|
(48)
|
(13)
|
(61)
|
Stock options
expense
|
—
|
1
|
—
|
—
|
1
|
—
|
1
|
Issuance of common
shares upon exercise of stock options
|
2
|
(1)
|
—
|
—
|
1
|
—
|
1
|
Redemption of common
shares
|
(5)
|
—
|
(4)
|
—
|
(9)
|
—
|
(9)
|
Acquisitions of
non-controlling interests
|
—
|
—
|
(1)
|
—
|
(1)
|
(1)
|
(2)
|
Balance - End of
year
|
611
|
14
|
1,212
|
34
|
1,871
|
57
|
1,928
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31, 2021
|
(in millions of
Canadian dollars)
|
CAPITAL
STOCK
|
CONTRIBUTED
SURPLUS
|
RETAINED
EARNINGS
|
ACCUMULATED
OTHER
COMPREHENSIVE
LOSS
|
TOTAL EQUITY
ATTRIBUTABLE TO
SHAREHOLDERS
|
NON-
CONTROLLING
INTERESTS
|
TOTAL
EQUITY
|
Balance - Beginning
of year
|
622
|
13
|
1,146
|
(28)
|
1,753
|
204
|
1,957
|
Comprehensive income
(loss)
|
|
|
|
|
|
|
|
Net
earnings
|
—
|
—
|
162
|
—
|
162
|
25
|
187
|
Other comprehensive
income (loss)
|
—
|
—
|
22
|
5
|
27
|
(12)
|
15
|
|
—
|
—
|
184
|
5
|
189
|
13
|
202
|
Dividends
|
—
|
—
|
(41)
|
—
|
(41)
|
(14)
|
(55)
|
Dividends paid to
non-controlling interests from discontinued operations
|
—
|
—
|
—
|
—
|
—
|
(3)
|
(3)
|
Stock options
expense
|
—
|
1
|
—
|
—
|
1
|
—
|
1
|
Issuance of common
shares upon exercise of stock options
|
2
|
—
|
—
|
—
|
2
|
—
|
2
|
Redemption of common
shares
|
(10)
|
—
|
(16)
|
—
|
(26)
|
—
|
(26)
|
Acquisitions of
non-controlling interests
|
—
|
—
|
1
|
—
|
1
|
(1)
|
—
|
Disposals of
non-controlling interests
|
—
|
—
|
—
|
—
|
—
|
(151)
|
(151)
|
Balance - End of
year
|
614
|
14
|
1,274
|
(23)
|
1,879
|
48
|
1,927
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the 3-month
periods ended December 31,
|
For the years
ended December 31,
|
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
Operating activities
from continuing operations
|
|
|
|
|
Net earnings (loss)
attributable to Shareholders for the period
|
(27)
|
105
|
(34)
|
162
|
Results from
discontinued operations
|
—
|
(204)
|
—
|
(234)
|
Results from
discontinued operations attributable to non-controlling
interests
|
—
|
—
|
—
|
13
|
Net loss from
continuing operations
|
(27)
|
(99)
|
(34)
|
(59)
|
Adjustments
for:
|
|
|
|
|
Financing
expense
|
20
|
42
|
88
|
106
|
Depreciation and
amortization
|
62
|
60
|
252
|
252
|
Impairment
charges
|
86
|
88
|
102
|
89
|
Gain on acquisitions,
disposals and others
|
(10)
|
(1)
|
(20)
|
(40)
|
Restructuring
costs
|
2
|
6
|
3
|
21
|
Unrealized loss (gain)
on derivative financial instruments
|
(4)
|
(1)
|
6
|
17
|
Provision for (recovery
of) income taxes
|
(16)
|
(29)
|
(22)
|
9
|
Share of results of
associates and joint ventures
|
(4)
|
(7)
|
(19)
|
(18)
|
Net earnings
attributable to non-controlling interests
|
7
|
3
|
20
|
12
|
Net financing expense
paid
|
(15)
|
(11)
|
(87)
|
(96)
|
Premium and transaction
fees paid on long-term debt redemption
|
—
|
(24)
|
—
|
(24)
|
Net income taxes
received (paid)
|
—
|
—
|
(5)
|
2
|
Dividends
received
|
6
|
6
|
12
|
11
|
Provisions for
contingencies and charges and other liabilities
|
(7)
|
(13)
|
(36)
|
(35)
|
|
100
|
20
|
260
|
247
|
Changes in non-cash
working capital components
|
96
|
49
|
(116)
|
(36)
|
|
196
|
69
|
144
|
211
|
Investing activities
from continuing operations
|
|
|
|
|
Disposals in associates
and joint ventures
|
1
|
—
|
1
|
1
|
Payments for property,
plant and equipment
|
(160)
|
(95)
|
(501)
|
(286)
|
Proceeds from disposals
of property, plant and equipment
|
11
|
2
|
19
|
53
|
Change in intangible
and other assets
|
(2)
|
(1)
|
(5)
|
(15)
|
|
(150)
|
(94)
|
(486)
|
(247)
|
Financing activities
from continuing operations
|
|
|
|
|
Bank loans and
advances
|
2
|
(6)
|
2
|
(11)
|
Change in credit
facilities
|
(65)
|
5
|
323
|
5
|
Increase in term
loan
|
355
|
—
|
355
|
—
|
Payments of term
loan
|
(219)
|
(6)
|
(219)
|
(6)
|
Repurchase of unsecured
senior notes
|
—
|
(372)
|
—
|
(372)
|
Increase in other
long-term debt
|
—
|
—
|
—
|
5
|
Payments of other
long-term debt, including lease obligations
|
(42)
|
(6)
|
(117)
|
(69)
|
Issuance of common
shares upon exercise of stock options
|
—
|
—
|
1
|
2
|
Redemption of common
shares
|
—
|
—
|
(9)
|
(26)
|
Dividends paid to
non-controlling interests
|
(4)
|
(4)
|
(13)
|
(14)
|
Acquisition of
non-controlling interests
|
—
|
—
|
(3)
|
(2)
|
Dividends paid to the
Corporation's Shareholders
|
(12)
|
(12)
|
(48)
|
(41)
|
|
15
|
(401)
|
272
|
(529)
|
Change in cash and
cash equivalents during the period from continuing
operations
|
61
|
(426)
|
(70)
|
(565)
|
Change in cash and
cash equivalents from discontinued operations, including
reclassification of beginning of year cash and cash equivalents in
2021
|
—
|
450
|
—
|
356
|
Net change in cash
and cash equivalents during the period
|
61
|
24
|
(70)
|
(209)
|
Currency translation
on cash and cash equivalents
|
(2)
|
(1)
|
(2)
|
(1)
|
Cash and cash
equivalents - Beginning of the period
|
43
|
151
|
174
|
384
|
Cash and cash
equivalents - End of the period
|
102
|
174
|
102
|
174
|
SEGMENTED INFORMATION
The Corporation's operations are managed in three segments:
Containerboard and Specialty Products (which constitutes the
Corporation's Packaging Products) and Tissue Papers. The accounting
policies of the reportable segments are the same as the
Corporation's accounting policies described in Note 2.
The Corporation's operating segments are reported in a manner
consistent with the internal reporting provided to the chief
operating decision-maker (CODM). The Chief Executive Officer has
authority for resource allocation and management of the
Corporation's performance and is therefore the CODM. During the
year ended December 31, 2022, the
CODM assesses the performance of each reportable segment based
on sales and earnings before interest, taxes, depreciation and
amortization, adjusted to exclude specific items
(EBITDA (A)). The CODM considers EBITDA (A) to be the
best performance measure of the Corporation's activities.
Sales for each segment are prepared on the same basis as those
of the Corporation. Inter-segment operations are recorded on the
same basis as sales to third parties, which are at fair market
value.
EBITDA (A) does not have a standardized meaning under IFRS;
accordingly, it may not be comparable to similarly named measures
used by other companies. Investors should not view EBITDA (A) as an
alternative measure to, for example, net earnings, or as a measure
of operating results, which are IFRS measures.
|
|
|
|
|
|
|
SALES TO
|
|
|
|
For the 3-month
periods ended December 31,
|
|
Canada
|
United
States
|
Other
countries
|
Total
|
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
Packaging
Products
|
|
|
|
|
|
|
|
|
Containerboard
|
325
|
311
|
242
|
190
|
—
|
1
|
567
|
502
|
Specialty
Products
|
55
|
55
|
105
|
96
|
1
|
—
|
161
|
151
|
Inter-segment
sales
|
(4)
|
(4)
|
(3)
|
(4)
|
—
|
—
|
(7)
|
(8)
|
|
376
|
362
|
344
|
282
|
1
|
1
|
721
|
645
|
Tissue
Papers
|
124
|
104
|
260
|
235
|
—
|
—
|
384
|
339
|
Inter-segment sales
and Corporate Activities
|
24
|
40
|
5
|
4
|
1
|
—
|
30
|
44
|
|
524
|
506
|
609
|
521
|
2
|
1
|
1,135
|
1,028
|
|
|
|
|
|
|
|
SALES TO
|
|
|
|
For the years ended
December 31,
|
|
Canada
|
United
States
|
Other
countries
|
Total
|
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
Packaging
Products
|
|
|
|
|
|
|
|
|
Containerboard
|
1,326
|
1,239
|
938
|
769
|
1
|
1
|
2,265
|
2,009
|
Specialty
Products
|
236
|
202
|
417
|
346
|
1
|
—
|
654
|
548
|
Inter-segment
sales
|
(18)
|
(14)
|
(18)
|
(18)
|
—
|
—
|
(36)
|
(32)
|
|
1,544
|
1,427
|
1,337
|
1,097
|
2
|
1
|
2,883
|
2,525
|
Tissue
Papers
|
449
|
385
|
973
|
887
|
—
|
—
|
1,422
|
1,272
|
Inter-segment sales
and Corporate Activities
|
138
|
145
|
22
|
14
|
1
|
—
|
161
|
159
|
|
2,131
|
1,957
|
2,332
|
1,998
|
3
|
1
|
4,466
|
3,956
|
The reconciliation of operating income (loss) to EBITDA (A) by
business segment is as follows:
|
For the 3-month
period ended December 31, 2022
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
85
|
22
|
(86)
|
(41)
|
(20)
|
Depreciation and
amortization
|
30
|
5
|
17
|
10
|
62
|
Impairment
charges
|
8
|
3
|
75
|
—
|
86
|
Gain on acquisitions,
disposals and others
|
—
|
(10)
|
—
|
—
|
(10)
|
Restructuring
costs
|
—
|
—
|
2
|
—
|
2
|
Unrealized gain on
derivative financial instruments
|
(4)
|
—
|
—
|
—
|
(4)
|
EBITDA
(A)
|
119
|
20
|
8
|
(31)
|
116
|
|
For the 3-month period
ended December 31, 2021
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
43
|
17
|
(115)
|
(35)
|
(90)
|
Depreciation and
amortization
|
28
|
4
|
17
|
11
|
60
|
Impairment
charges
|
1
|
—
|
87
|
—
|
88
|
Gain on acquisitions,
disposals and others
|
—
|
—
|
(1)
|
—
|
(1)
|
Restructuring
costs
|
—
|
—
|
6
|
—
|
6
|
Unrealized loss (gain)
on derivative financial instruments
|
(2)
|
—
|
—
|
1
|
(1)
|
EBITDA
(A)
|
70
|
21
|
(6)
|
(23)
|
62
|
|
2022
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
266
|
86
|
(175)
|
(144)
|
33
|
Depreciation and
amortization
|
118
|
19
|
74
|
41
|
252
|
Impairment
charges
|
10
|
3
|
89
|
—
|
102
|
Gain on acquisitions,
disposals and others
|
—
|
(16)
|
(4)
|
—
|
(20)
|
Restructuring
costs
|
—
|
—
|
3
|
—
|
3
|
Unrealized loss (gain)
on derivative financial instruments
|
7
|
—
|
—
|
(1)
|
6
|
EBITDA
(A)
|
401
|
92
|
(13)
|
(104)
|
376
|
|
2021
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
230
|
59
|
(108)
|
(131)
|
50
|
Depreciation and
amortization
|
120
|
15
|
70
|
47
|
252
|
Impairment
charges
|
1
|
—
|
88
|
—
|
89
|
Gain on acquisitions,
disposals and others
|
—
|
—
|
(40)
|
—
|
(40)
|
Restructuring
costs
|
4
|
—
|
17
|
—
|
21
|
Unrealized loss on
derivative financial instruments
|
17
|
—
|
—
|
—
|
17
|
EBITDA
(A)
|
372
|
74
|
27
|
(84)
|
389
|
|
PAYMENTS FOR PROPERTY,
PLANT AND EQUIPMENT
|
|
For the 3-month
periods
ended December 31,
|
For the years
ended December 31,
|
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
2022
|
2021
|
Packaging
Products
|
|
|
|
|
Containerboard
|
180
|
97
|
481
|
236
|
Specialty
Products
|
15
|
19
|
40
|
42
|
|
195
|
116
|
521
|
278
|
Tissue
Papers
|
16
|
23
|
55
|
49
|
Corporate
Activities
|
18
|
20
|
43
|
46
|
Total
acquisitions
|
229
|
159
|
619
|
373
|
Right-of-use assets
acquisitions and of property, plant and equipment included in other
debts
|
(18)
|
(13)
|
(87)
|
(43)
|
|
211
|
146
|
532
|
330
|
Acquisitions for
property, plant and equipment included in "Trade and other
payables"
|
|
|
|
|
Beginning of the
period
|
55
|
24
|
75
|
31
|
End of the
period
|
(106)
|
(75)
|
(106)
|
(75)
|
Payments for
property, plant and equipment
|
160
|
95
|
501
|
286
|
Proceeds from
disposals of property, plant and equipment
|
(11)
|
(2)
|
(19)
|
(53)
|
Payments for
property, plant and equipment net of proceeds from
disposals
|
149
|
93
|
482
|
233
|
SUPPLEMENTAL INFORMATION ON NON-IFRS MEASURES AND OTHER FINANCIAL
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 that of other
corporations and some of these items 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
gains or losses on investments, specific items of discontinued
operations and other significant items of an unusual, non-cash or
non-recurring nature.
RECONCILIATION AND USES OF NON-IFRS AND OTHER FINANCIAL
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 and capital measures, as well as 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 and other financial measures are used in our
financial disclosures:
Non-IFRS measures
- Adjusted earnings before interest, taxes, depreciation and
amortization or EBITDA (A): Used to assess operating performance
and the contribution of each segment on a comparable basis.
- Adjusted net earnings: Used to assess the Corporation's
consolidated financial performance on a comparable basis.
- Adjusted 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.
- Free cash flow: Used to measure the excess cash the Corporation
generates by subtracting capital expenditures (excluding strategic
projects) from the EBITDA (A).
- Working capital: Used to assess the short-term liquidity of the
Corporation.
Other financial measures
- Total debt: Used to calculate all the Corporation's debt,
including long-term debt and bank loans. Often put in relation to
equity to calculate the debt-to-equity ratio.
- Net debt: Used to calculate the Corporation's total debt less
cash and cash equivalents. Often put in relation to EBITDA (A) to
calculate net debt to EBITDA (A) ratio.
Non-IFRS ratios
- Net debt to EBITDA (A) ratio: Used to assess the Corporation's
ability to pay its debt and evaluate financial leverage.
- EBITDA (A) margin: Used to assess operating performance and the
contribution of each segment on a comparable basis calculated as a
percentage of sales.
- Adjusted net earnings per common share: Used to assess the
Corporation's consolidated financial performance on a comparable
basis.
- Net debt / Net debt + Shareholders' equity: Used to evaluate
the Corporation's financial leverage and thus the risk to
Shareholders.
- Working capital as a percentage of sales: Used to assess the
Corporation's operating liquidity performance.
- Adjusted cash flow per common share: Used to assess the
Corporation's financial flexibility.
- Free cash flow ratio: Used to measure the liquidity and
efficiency of how much more cash the Corporation generates than it
uses to run the business by subtracting capital expenditures
(excluding strategic projects) from the EBITDA (A) calculated as a
percentage of sales.
Non-IFRS and other financial 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 and other financial
measures may differ from those of other corporations. Any such
modification or reformulation may be significant.
During the year ended December 31,
2022, the CODM assesses the performance of each reportable
segment based on sales and earnings before interest, taxes,
depreciation and amortization, adjusted to exclude specific items
(EBITDA (A)1). The CODM considers EBITDA
(A)1 to be the best performance measure of the
Corporation's activities.
The reconciliation of operating income (loss) to EBITDA
(A)1 by business segment is as follows:
|
Q4
2022
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
85
|
22
|
(86)
|
(41)
|
(20)
|
Depreciation and
amortization
|
30
|
5
|
17
|
10
|
62
|
Impairment
charges
|
8
|
3
|
75
|
—
|
86
|
Gain on acquisitions,
disposals and others
|
—
|
(10)
|
—
|
—
|
(10)
|
Restructuring
costs
|
—
|
—
|
2
|
—
|
2
|
Unrealized gain on
derivative financial instruments
|
(4)
|
—
|
—
|
—
|
(4)
|
EBITDA
(A)1
|
119
|
20
|
8
|
(31)
|
116
|
|
Q3 2022
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
68
|
20
|
(31)
|
(32)
|
25
|
Depreciation and
amortization
|
31
|
5
|
21
|
10
|
67
|
Impairment
charges
|
2
|
—
|
14
|
—
|
16
|
Unrealized loss on
derivative financial instruments
|
2
|
—
|
—
|
1
|
3
|
EBITDA
(A)1
|
103
|
25
|
4
|
(21)
|
111
|
|
Q4 2021
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
43
|
17
|
(115)
|
(35)
|
(90)
|
Depreciation and
amortization
|
28
|
4
|
17
|
11
|
60
|
Impairment
charges
|
1
|
—
|
87
|
—
|
88
|
Gain on acquisitions,
disposals and others
|
—
|
—
|
(1)
|
—
|
(1)
|
Restructuring
costs
|
—
|
—
|
6
|
—
|
6
|
Unrealized loss (gain)
on derivative financial instruments
|
(2)
|
—
|
—
|
1
|
(1)
|
EBITDA
(A)1
|
70
|
21
|
(6)
|
(23)
|
62
|
|
2022
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
266
|
86
|
(175)
|
(144)
|
33
|
Depreciation and
amortization
|
118
|
19
|
74
|
41
|
252
|
Impairment
charges
|
10
|
3
|
89
|
—
|
102
|
Gain on acquisitions,
disposals and others
|
—
|
(16)
|
(4)
|
—
|
(20)
|
Restructuring
costs
|
—
|
—
|
3
|
—
|
3
|
Unrealized loss (gain)
on derivative financial instruments
|
7
|
—
|
—
|
(1)
|
6
|
EBITDA
(A)1
|
401
|
92
|
(13)
|
(104)
|
376
|
1 Please refer to the
"Supplemental Information on Non-IFRS Measures and Other Financial
Measures" section for a complete reconciliation.
|
|
2021
|
(in millions of
Canadian dollars) (unaudited)
|
Containerboard
|
Specialty
Products
|
Tissue
Papers
|
Corporate
Activities
|
Consolidated
|
Operating income
(loss)
|
230
|
59
|
(108)
|
(131)
|
50
|
Depreciation and
amortization
|
120
|
15
|
70
|
47
|
252
|
Impairment
charges
|
1
|
—
|
88
|
—
|
89
|
Gain on acquisitions,
disposals and others
|
—
|
—
|
(40)
|
—
|
(40)
|
Restructuring
costs
|
4
|
—
|
17
|
—
|
21
|
Unrealized loss on
derivative financial instruments
|
17
|
—
|
—
|
—
|
17
|
EBITDA
(A)1
|
372
|
74
|
27
|
(84)
|
389
|
The following table reconciles net earnings (loss) and net
earnings (loss) per common share, as reported, with adjusted net
earnings (loss)1 and adjusted net earnings
(loss)1 per common share:
(in millions of
Canadian dollars, except per common
share amounts and number of common shares)
(unaudited)
|
NET EARNINGS
(LOSS)
|
|
NET EARNINGS
(LOSS)
PER COMMON
SHARE2
|
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
As
reported
|
(34)
|
162
|
(27)
|
(2)
|
105
|
|
($0.34)
|
$1.60
|
($0.27)
|
($0.02)
|
$1.04
|
Specific
items:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
102
|
89
|
86
|
16
|
88
|
|
$0.76
|
$0.75
|
$0.64
|
$0.12
|
$0.74
|
Gain on acquisitions,
disposals and others
|
(20)
|
(40)
|
(10)
|
—
|
(1)
|
|
($0.17)
|
($0.32)
|
($0.09)
|
—
|
($0.01)
|
Restructuring
costs
|
3
|
21
|
2
|
—
|
6
|
|
$0.03
|
$0.15
|
$0.02
|
—
|
$0.04
|
Unrealized loss (gain)
on derivative financial instruments
|
6
|
17
|
(4)
|
3
|
(1)
|
|
$0.04
|
$0.11
|
($0.03)
|
$0.02
|
($0.01)
|
Loss on repurchase of
long-term debt
|
—
|
20
|
—
|
—
|
20
|
|
—
|
$0.13
|
—
|
—
|
$0.13
|
Unrealized loss on
option fair value
|
—
|
1
|
—
|
—
|
1
|
|
—
|
—
|
—
|
—
|
—
|
Foreign exchange loss
(gain) on long-term debt and financial instruments
|
9
|
(3)
|
(3)
|
10
|
—
|
|
$0.08
|
($0.02)
|
($0.02)
|
$0.08
|
—
|
Included in
discontinued operations, net of tax
|
—
|
(224)
|
—
|
—
|
(204)
|
|
—
|
($2.14)
|
—
|
—
|
($2.02)
|
Tax effect on specific
items, other tax adjustments and attributable to non-controlling
interest2
|
(29)
|
(16)
|
(22)
|
(7)
|
(23)
|
|
($0.03)
|
—
|
($0.03)
|
—
|
—
|
|
71
|
(135)
|
49
|
22
|
(114)
|
|
$0.71
|
($1.34)
|
$0.49
|
$0.22
|
($1.13)
|
Adjusted1
|
37
|
27
|
22
|
20
|
(9)
|
|
$0.37
|
$0.26
|
$0.22
|
$0.20
|
($0.09)
|
Weighted average
basic number of common shares outstanding
|
|
|
|
|
|
|
100,647,972
|
101,884,051
|
100,361,627
|
100,822,027
|
100,858,870
|
The following table reconciles cash flow from (used by) operating
activities from continuing operations with EBITDA
(A)1:
(in millions of
Canadian dollars) (unaudited)
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
Cash flow from (used
by) operating activities from continuing operations
|
144
|
211
|
196
|
(1)
|
69
|
Changes in non-cash
working capital components
|
116
|
36
|
(96)
|
61
|
(49)
|
Net income taxes paid
(received)
|
5
|
(2)
|
—
|
1
|
—
|
Net financing expense
paid
|
87
|
96
|
15
|
38
|
11
|
Premium and transaction
fees paid on long-term debt redemption
|
—
|
24
|
—
|
—
|
24
|
Provisions for
contingencies and charges and other liabilities, net of dividends
received
|
24
|
24
|
1
|
12
|
7
|
EBITDA
(A)1
|
376
|
389
|
116
|
111
|
62
|
1 Please refer to
the "Supplemental Information on Non-IFRS Measures and Other
Financial Measures" section for a complete
reconciliation.
|
2 Specific amounts
per common 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.
|
The following table reconciles cash flow from (used by) operating
activities from continuing operations with cash flow from operating
activities from continuing operations (excluding changes in
non-cash working capital components) and adjusted cash flow from
operating activities from continuing operations1. It
also reconciles adjusted cash flow from operating activities from
continuing operations1 to adjusted cash flow
used1, which is also calculated on a per common share
basis:
(in millions of
Canadian dollars, except per common share amounts or otherwise
noted) (unaudited)
|
2022
|
2021
|
Q4
2022
|
Q3 2022
|
Q4 2021
|
Cash flow from (used
by) operating activities from continuing operations
|
144
|
211
|
196
|
(1)
|
69
|
Changes in non-cash
working capital components
|
116
|
36
|
(96)
|
61
|
(49)
|
Cash flow from
operating activities from continuing operations (excluding changes
in non-cash working capital components)
|
260
|
247
|
100
|
60
|
20
|
Restructuring costs
paid
|
12
|
25
|
3
|
2
|
7
|
Premium and
transaction fees paid on long-term debt redemption
|
—
|
24
|
—
|
—
|
24
|
Specific items
paid
|
12
|
49
|
3
|
2
|
31
|
Adjusted cash flow
from operating activities from continuing
operations1
|
272
|
296
|
103
|
62
|
51
|
Payments for property,
plant and equipment
|
(501)
|
(286)
|
(160)
|
(122)
|
(95)
|
Change in intangible
and other assets
|
(5)
|
(15)
|
(2)
|
—
|
(1)
|
Lease obligation
payments
|
(55)
|
(47)
|
(15)
|
(14)
|
(12)
|
Proceeds from
disposals of property, plant and equipment
|
19
|
53
|
11
|
1
|
2
|
|
(270)
|
1
|
(63)
|
(73)
|
(55)
|
Dividends paid to
non-controlling interests
|
(13)
|
(14)
|
(4)
|
(3)
|
(4)
|
Dividends paid to the
Corporation's Shareholders and to non-controlling
interests
|
(48)
|
(41)
|
(12)
|
(12)
|
(12)
|
Adjusted cash flow
used1
|
(331)
|
(54)
|
(79)
|
(88)
|
(71)
|
Adjusted cash flow
used1 per common share
(in Canadian
dollars)
|
($3.29)
|
($0.53)
|
($0.79)
|
($0.87)
|
($0.70)
|
Weighted average
basic number of common shares outstanding
|
100,647,972
|
101,884,051
|
100,361,627
|
100,822,027
|
100,858,870
|
The following table reconciles total debt1 and net
debt1 with the ratio of net debt to adjusted earnings
before interest, taxes, depreciation and amortization (EBITDA
(A))1:
(in millions of
Canadian dollars) (unaudited)
|
December
31,
2022
|
September
30,
2022
|
December 31,
2021
|
Long-term
debt
|
1,931
|
1,975
|
1,450
|
Current portion of
other debts without recourse to the Corporation to be
refinanced
|
67
|
—
|
—
|
Current portion of
long-term debt
|
67
|
77
|
74
|
Bank loans and
advances
|
3
|
2
|
1
|
Total
debt1
|
2,068
|
2,054
|
1,525
|
Less: Cash and cash
equivalents
|
(102)
|
(43)
|
(174)
|
Net debt1
as reported
|
1,966
|
2,011
|
1,351
|
EBITDA (A)1
as reported on a last twelve months basis
|
376
|
322
|
389
|
Net debt / EBITDA
(A) ratio1
|
5.2x
|
6.2x
|
3.5x
|
1 Please refer to the
"Supplemental Information on Non-IFRS Measures and Other Financial
Measures" section for a complete reconciliation.
|
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content:https://www.prnewswire.com/news-releases/cascades-reports-results-for-the-fourth-quarter-and-full-year-2022-301753656.html
SOURCE Cascades Inc.