US $
- 2012 loss of $0.02 per share; earnings of $0.81 per share excluding
special items
- Q4 adjusted EBITDA of $104 million; $386 million for the year
- Net debt of $271 million
- Cash flow from operations of $266 million in 2012
MONTREAL, Feb. 12, 2013 /CNW Telbec/ - Resolute Forest Products Inc.
(NYSE: RFP) (TSX: RFP) reported a net loss of $2 million for the year
ended December 31, 2012, or $0.02 per share, on sales of $4.5
billion. This compares with net income of $41 million, or $0.42 per
diluted share, on sales of $4.8 billion in the year ended December 31,
2011. Net loss in the fourth quarter of 2012 was $36 million, or $0.38
per share, on sales of $1.1 billion, compared with a net loss of $6
million, or $0.06 per share, on sales of $1.1 billion in the fourth
quarter of 2011.
Excluding $81 million of special items, net income for the full year was
$79 million, or $0.81 per diluted share. Excluding special items of $70
million, net income in the fourth quarter was $34 million, or $0.35 per
diluted share. For the full year 2011, net income excluding special
items was $166 million, or $1.71 per diluted share, and $45 million, or
$0.46 per diluted share, in the fourth quarter 2011. All special items
and non-GAAP financial measures, such as adjustments for special items
and adjusted EBITDA, are described and reconciled below.
"We significantly improved the Company's competitiveness by optimizing
our asset base, reducing costs wherever possible and strengthening our
financial position this year," said Richard Garneau, president and
chief executive officer. "We added pulp assets, committed to growth
projects in lumber, invested in power cogeneration plants and further
optimized our paper assets, steps that will position us well for the
future. At the same time, we returned $67 million to our shareholders
in share buybacks, reduced balance sheet working capital by a further
$81 million from the end of 2011 and redeemed an additional $85 million
of debt."
Operating Income Variance
The Company recorded an operating loss of $30 million in 2012, compared
to operating income of $198 million in 2011. This reflects a $134
million increase in closure costs, impairment and other related
charges, and $173 million of lower volume, in both cases because of
additional market downtime and the Company's ongoing efforts to focus
production in its most cost-effective mills and drive better efficiency
by restructuring and reducing labor costs. As a result, and in addition
to lower energy, recovered paper and fiber costs, manufacturing costs
improved by $55 million, excluding the effects of lower volume. The
effect of pricing changes in the year was neutral as the increase in
lumber pricing offset declines in pulp, while gains in specialty paper
offset declines in newsprint and coated papers.
In the fourth quarter, the Company recorded an operating loss of $46
million, compared to operating income of $26 million in the third. This
reflects $82 million in closure costs, impairment and other related
charges, mainly related to the idling of a pulp mill and specialty
paper machine in Fort Frances, Ontario, the closure of a specialty
paper machine in Laurentide, Quebec, and costs related to the sale of
assets in Mersey, Nova Scotia. The variance also included the
unfavorable effects of a $10 million non-cash inventory obsolescence
charge for slow-moving spare parts, $10 million unfavorable pricing and
$8 million due to lower volume. The Company's asset optimization and
restructuring initiatives, as well as more favorable pricing for
recovered paper, maintenance timing and a favorable wood products
inventory adjustment, led to savings of $25 million in overall
manufacturing costs, excluding the effects of lower volume.
SEGMENT DETAILS
Newsprint
The newsprint segment generated operating income of $18 million in the
fourth quarter, an $8 million decrease from the third. Average
transaction price slipped $6 per metric ton and shipments fell 2% as a
result of newsprint export markets pressured by the strong U.S.
dollar. There was a $4 million non-cash provision for spare parts
obsolescence recorded against operating income in the quarter, but it
was offset by lower manufacturing costs and favorable recovered paper
pricing.
An 11% reduction in operating costs led to a 9% increase in operating
income for the year, to $97 million, despite a 10% reduction in
shipments and a 1% decrease in average transaction price. The Company
reduced shipments as part of its efforts to manage its exposure to
markets affected by the strong U.S. dollar and its steps to optimize
its asset base, including the closure and subsequent sale of its
interest in the Mersey newsprint mill.
Coated Papers
Operating income in the coated papers segment was unchanged in the
fourth quarter compared to the third, at $3 million. Average
transaction price rose $18 per short ton, or 2%, but shipments were
down 14% as a result of equipment failures, which pushed operating
costs per unit up 3%.
Operating income in the coated papers segment was down $48 million in
2012, to $9 million, as a result of a 3% reduction in average
transaction price and a 13% reduction in shipments. The Company
continued to make progress in its efforts to improve equipment
efficiency with a smaller labor force, but operating costs per unit
rose by 6% in the year, as the Catawba, South Carolina, mill continues
to work toward capturing the expected efficiencies.
Specialty Papers
The specialty papers segment generated operating income of $8 million in
the fourth quarter, an $18 million decrease from the previous quarter.
Average transaction price was stable but shipments dropped 3% on lower
demand. The decrease in operating income includes $4 million in
additional costs associated with the Dolbeau, Quebec, facility's
ramp-up and a $3 million non-cash provision for spare parts
obsolescence.
The restart of the Dolbeau facility is another step in the Company's
strategy to optimize its asset base; in the last five quarters, three
specialty paper machines, one in each of Laurentide, Fort Frances and
Kenogami, Quebec, were closed or idled, and the Company continued its
labor restructuring initiatives, most recently in Alma, Quebec. Despite
a 16% drop in shipments, consistent with the industry average,
operating income rose 23% from 2011 to 2012, to $76 million, as average
transaction price increased 3% and the Company improved manufacturing
costs, including a $7 million improvement in labor costs and $14
million of favorable power and steam costs.
Market Pulp
Operating income was breakeven in the quarter, a $22 million improvement
over the third. Average transaction price dropped $23 per metric ton,
or 3%, from its already low levels in the third quarter. Despite
indefinitely idling the Fort Frances pulp mill in late November,
shipments rose 8% as the Company ran Fibrek's Saint-Felicien, Quebec,
facility throughout the quarter, except for four days of downtime to
complete the dredging of many years of accumulated sludge in the
lagoons. Manufacturing costs improved by $18 million as there was no
major maintenance in the quarter.
Operating income in 2012 was $135 million lower than in 2011, reflecting
primarily the $82 per metric ton drop in average transaction price
(which includes, as of May 2012, the three Fibrek mills), but also an
increase of $21million in operating costs on higher chemicals, maintenance and labor
costs. The five-week outage at Saint-Felicien had a $16 million
negative impact on operating income.
Wood Products
The wood products segment reported operating income of $14 million in
the fourth quarter, $8 million higher than the third. Average
transaction price was unchanged but shipments rose 1%. There was a $7
million favorable inventory adjustment as a result of increasing market
prices for lumber products.
As a result of stronger market conditions and gradually improving North
American housing starts, operating income increased $51 million in the
year, to $26 million, and average transaction price rose $53 per
thousand board feet, or 18%. Shipments were down 9% as a result of the
closure of the Oakhill sawmill in Nova Scotia and downtime in Quebec
sawmills. Manufacturingcosts rose $16 million mainly because of higher stumpage fees in Quebec,
which is tied to lumber pricing.
CORPORATE & FINANCE
The Company used cash on hand to repurchase 1,946,205 shares of common
stock during the fourth quarter under its previously announced share
repurchase program, at a total cost of $22 million, and to redeem $85
million of its 10.25% senior secured notes due 2018. With $263 million
of cash, the Company ended the quarter with $782 million of available
liquidity, and $271 million in net debt.
OUTLOOK
Mr. Garneau added: "combined with softening demand and lower exports
from North America, recent capacity restarts by competitors are putting
pressure on pricing in newsprint and supercalender grades. We have
focused our paper production in our most productive sites and drove
better efficiency by restructuring mills and reducing labor costs. This
gives us confidence in the competitiveness of our improved asset base
as we face the challenges ahead. We expect to benefit in 2013 from
investments in power cogeneration assets, with Saint-Felicien and
Dolbeau now fully operational and Thunder Bay expected to come online
by the end of the first quarter. Recent demand and pricing trends are
giving us reason for cautious optimism that the pulp market is
gradually coming out of its prolonged slump. Wood products should
continue to show progress as housing starts build on recent
improvements. Our ongoing growth projects - the capacity enhancement in
Thunder Bay, in addition to the announced restart of the Ignace sawmill
and construction of the new Atikokan sawmill to be completed in 2014 -
further enhance our position in the lumber segment for the future."
| DESCRIPTION OF SPECIAL ITEMS |
Special items, net of tax
(in millions)
|
|
Fourth
quarter 2012
|
|
Full year
2012
|
|
Fourth
quarter 2011
|
|
Full year
2011
|
Charge (gain) on non-
cash translation of
Canadian dollar net
monetary assets
|
|
$ 3
|
|
$ (23)
|
|
$ (13)
|
|
$ 23
|
|
Severance
|
|
1
|
|
4
|
|
-
|
|
8
|
Closure costs,
impairment and other
related charges
|
|
60
|
|
112
|
|
6
|
|
32
|
Inventory write-downs
related to closures
|
|
4
|
|
7
|
|
2
|
|
2
|
Start-up costs of idled
mills
|
|
6
|
|
10
|
|
-
|
|
-
|
Net gain on disposition of
assets
|
|
(6)
|
|
(22)
|
|
-
|
|
(2)
|
Post-emergence
expenses
|
|
4
|
|
9
|
|
9
|
|
34
|
Transaction costs related
to the acquisition of
Fibrek
|
|
1
|
|
8
|
|
4
|
|
4
|
|
Other income, net
|
|
(6)
|
|
(11)
|
|
(5)
|
|
(14)
|
Non-cash charge (gain)
for reorganization-related
and other tax adjustments
|
|
3
|
|
(13)
|
|
48
|
|
38
|
|
Total |
|
$ 70
|
|
$ 81
|
|
$ 51
|
|
$ 125
|
|
|
|
|
|
|
|
|
|
|
EARNINGS CONFERENCE CALL
The Company will hold a conference call to discuss the financial results
at 9:00 a.m. (ET) today. The public is invited to join the call at
(888) 789-9572 (pass code 9922866) at least fifteen minutes before its
scheduled start time. A simultaneous webcast will also be available
using the link provided under "Presentations and Webcasts" in the
"Investors" section of www.resolutefp.com. A replay of the webcast will be archived on the Company's website. A
phone replay will also be available until February 27 by dialing (800)
408-3053 with the pass code 1158286.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Statements in this press release and the earnings conference call
referred to above that are not reported financial results or other
historical information of Resolute Forest Products Inc. are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They include, for example,
statements relating to our: efforts to continue to reduce costs and
increase revenues and profitability, including our cost-reduction
initiatives regarding selling, general and administrative expenses;
business and operating outlook; assessment of market conditions;
prospects, growth strategies and the industry in which we operate; and
strategies for achieving our goals generally. Forward-looking
statements may be identified by the use of forward-looking terminology
such as the words "should," "would," "could," "will," "may," "expect,"
"believe," "anticipate," "attempt," "project" and other terms with
similar meaning indicating possible future events or potential impact
on our business or Resolute's shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a number of
business risks and uncertainties that could cause actual results to
differ materially. The potential risks and uncertainties that could
cause Resolute's actual future financial condition, results of
operations and performance to differ materially from those expressed or
implied in the presentation referred to above include, but are not
limited to, the potential risks and uncertainties set forth under the
heading "Risk Factors" in Part I, Item 1A of Resolute's annual report
on Form 10-K for the year ended December 31, 2011, filed with the
United States Securities and Exchange Commission and the Canadian
securities regulatory authorities.
All forward-looking statements in the presentation referred to above are
expressly qualified by the cautionary statements contained or referred
to above and in Resolute's other filings with the SEC and the Canadian
securities regulatory authorities. Resolute disclaims any obligation to
publicly update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
ABOUT RESOLUTE FOREST PRODUCTS
Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
commercial printing papers, market pulp and wood products. The Company
owns or operates over 40 pulp and paper mills and wood products
facilities in the United States, Canada and South Korea, and power
generation assets in Canada. Marketing its products in close to 80
countries, Resolute has third-party certified 100% of its managed
woodlands to at least one of three internationally-recognized
responsible forest management standards, including 65% certified to the
Forest Stewardship Council® (FSC) standards. The shares of Resolute
Forest Products trade under the stock symbol RFP on both the New York
Stock Exchange and the Toronto Stock Exchange.
Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic. Resolute is also a
member of the World Wildlife Fund's Climate Savers program, in which
businesses establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.
| RESOLUTE FOREST PRODUCTS INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited, in millions except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Three Months
|
|
Twelve Months
|
|
Twelve Months
|
|
|
Ended December 31,
|
|
Ended December 31,
|
|
Ended December 31,
|
|
Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
1,128
|
|
$
|
1,147
|
|
$
|
4,503
|
|
$
|
4,756
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding depreciation, amortization and cost of timber
harvested
|
|
876
|
|
|
864
|
|
|
3,492
|
|
|
3,590
|
|
|
Depreciation, amortization and cost of timber harvested
|
|
59
|
|
|
56
|
|
|
233
|
|
|
220
|
|
|
Distribution costs
|
|
129
|
|
|
132
|
|
|
514
|
|
|
547
|
|
|
Selling, general and administrative expenses
|
|
35
|
|
|
36
|
|
|
149
|
|
|
158
|
|
|
Closure costs, impairment and other related charges (2) |
|
82
|
|
|
12
|
|
|
180
|
|
|
46
|
|
|
Net gain on disposition of assets (3) |
|
(7)
|
|
|
-
|
|
|
(35)
|
|
|
(3)
|
|
Operating (loss) income
|
|
(46)
|
|
|
47
|
|
|
(30)
|
|
|
198
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(15)
|
|
|
(18)
|
|
|
(66)
|
|
|
(95)
|
|
|
Foreign currency translation (loss) gain (4) |
|
(4)
|
|
|
9
|
|
|
17
|
|
|
(21)
|
|
|
Other, net
|
|
4
|
|
|
(6)
|
|
|
5
|
|
|
(27)
|
|
(Loss) income before income taxes
|
|
(61)
|
|
|
32
|
|
|
(74)
|
|
|
55
|
|
Income tax benefit (provision) (5) |
|
26
|
|
|
(42)
|
|
|
38
|
|
|
(16)
|
|
Net (loss) income including noncontrolling interests
|
|
(35)
|
|
|
(10)
|
|
|
(36)
|
|
|
39
|
|
Net (income) loss attributable to noncontrolling interests
|
|
(1)
|
|
|
4
|
|
|
34
|
|
|
2
|
|
Net (loss) income attributable to Resolute Forest Products Inc.
|
$
|
(36)
|
|
$
|
(6)
|
|
$
|
(2)
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share attributable to Resolute Forest Products
Inc. common shareholders: (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.38)
|
|
$
|
(0.06)
|
|
$
|
(0.02)
|
|
$
|
0.42
|
|
|
Diluted
|
$
|
(0.38)
|
|
$
|
(0.06)
|
|
$
|
(0.02)
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of Resolute Forest Products Inc. common shares
outstanding: (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
95.7
|
|
|
97.1
|
|
|
97.4
|
|
|
97.1
|
|
|
Diluted
|
|
96.0
|
|
|
97.1
|
|
|
97.5
|
|
|
97.1
|
| RESOLUTE FOREST PRODUCTS INC. |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited, in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31,
|
|
|
2012
|
|
2011
|
| Assets |
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
263
|
|
$
|
369
|
|
|
Accounts receivable trade, net
|
|
576
|
|
|
582
|
|
|
Accounts receivable other
|
|
121
|
|
|
168
|
|
|
Inventories, net
|
|
545
|
|
|
475
|
|
|
Assets held for sale
|
|
-
|
|
|
7
|
|
|
Deferred income tax assets
|
|
56
|
|
|
109
|
|
|
Other current assets
|
|
58
|
|
|
59
|
|
|
|
Total current assets
|
|
1,619
|
|
|
1,769
|
|
Fixed assets, net
|
|
2,440
|
|
|
2,502
|
|
Amortizable intangible assets, net
|
|
69
|
|
|
18
|
|
Deferred income tax assets
|
|
2,002
|
|
|
1,749
|
|
Other assets
|
|
194
|
|
|
260
|
|
|
Total assets
|
$
|
6,324
|
|
$
|
6,298
|
|
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
$
|
581
|
|
$
|
544
|
|
|
Current portion of long-term debt
|
|
2
|
|
|
-
|
|
|
|
Total current liabilities
|
|
583
|
|
|
544
|
|
Long-term debt, net of current portion
|
|
532
|
|
|
621
|
|
Pension and other postretirement benefit obligations
|
|
1,946
|
|
|
1,524
|
|
Deferred income tax liabilities
|
|
75
|
|
|
75
|
|
Other long-term liabilities
|
|
72
|
|
|
57
|
|
|
|
Total liabilities
|
|
3,208
|
|
|
2,821
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock
|
|
-
|
|
|
-
|
|
Additional paid-in capital
|
|
3,730
|
|
|
3,687
|
|
Retained earnings
|
|
38
|
|
|
41
|
|
Accumulated other comprehensive loss
|
|
(614)
|
|
|
(311)
|
|
Treasury stock at cost
|
|
(61)
|
|
|
-
|
|
|
Total Resolute Forest Products Inc. shareholders' equity
|
|
3,093
|
|
|
3,417
|
|
Noncontrolling interests
|
|
23
|
|
|
60
|
|
|
Total equity
|
|
3,116
|
|
|
3,477
|
|
|
Total liabilities and equity
|
$
|
6,324
|
|
$
|
6,298
|
| RESOLUTE FOREST PRODUCTS INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited, in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
|
|
Twelve Months
|
|
|
Ended December 31,
|
|
Ended December 31,
|
|
|
2012
|
|
2011
|
| Cash flows from operating activities: |
|
|
|
|
|
|
Net (loss) income including noncontrolling interests
|
$
|
(36)
|
|
$
|
39
|
|
|
Adjustments to reconcile net (loss) income including noncontrolling
interests to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Share-based compensation
|
|
5
|
|
|
3
|
|
|
Depreciation, amortization and cost of timber harvested
|
|
233
|
|
|
220
|
|
|
Closure costs, impairment and other related charges
|
|
161
|
|
|
41
|
|
|
Write-downs of inventory
|
|
12
|
|
|
3
|
|
|
Deferred income taxes
|
|
(35)
|
|
|
19
|
|
|
Net pension contributions
|
|
(95)
|
|
|
(175)
|
|
|
Net gain on disposition of assets
|
|
(35)
|
|
|
(3)
|
|
|
(Gain) loss on translation of foreign currency denominated deferred
income taxes
|
|
(37)
|
|
|
25
|
|
|
Loss (gain) on translation of foreign currency denominated pension and
other postretirement benefit obligations
|
|
30
|
|
|
(15)
|
|
|
Premium related to debt redemptions
|
|
(5)
|
|
|
(16)
|
|
|
Dividends received from equity method investees in excess of income
|
|
2
|
|
|
9
|
|
|
Leasehold improvement incentive received from lessor
|
|
5
|
|
|
-
|
|
|
Other, net
|
|
(3)
|
|
|
(3)
|
|
|
Changes in working capital:
|
|
|
|
|
-
|
|
|
|
Accounts receivable
|
|
91
|
|
|
87
|
|
|
|
Inventories
|
|
(21)
|
|
|
(39)
|
|
|
|
Other current assets
|
|
5
|
|
|
31
|
|
|
|
Accounts payable and accrued liabilities
|
|
(11)
|
|
|
(28)
|
|
|
|
|
Net change in working capital
|
|
64
|
|
|
51
|
|
|
|
Net cash provided by operating activities
|
|
266
|
|
|
198
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
Cash invested in fixed assets
|
|
(169)
|
|
|
(97)
|
|
Disposition of investment in ACH Limited Partnership
|
|
-
|
|
|
296
|
|
Disposition of our interest in Bowater Mersey Paper Company Limited, net
of cash
|
|
14
|
|
|
-
|
|
Disposition of other assets
|
|
36
|
|
|
19
|
|
Acquisition of Fibrek Inc., net of cash acquired (1) |
|
(24)
|
|
|
-
|
|
Proceeds from holdback related to disposition of investment in MPCo
|
|
-
|
|
|
29
|
|
Proceeds from insurance settlements
|
|
-
|
|
|
8
|
|
Decrease (increase) in restricted cash
|
|
76
|
|
|
(2)
|
|
Increase in deposit requirements for letters of credit, net
|
|
(12)
|
|
|
(8)
|
|
Other investing activities, net
|
|
4
|
|
|
-
|
|
|
|
Net cash (used in) provided by investing activities
|
|
(75)
|
|
|
245
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
Purchases of treasury stock
|
|
(67)
|
|
|
-
|
|
Dividends and distribution to noncontrolling interests
|
|
(5)
|
|
|
(21)
|
|
Acquisition of noncontrolling interest (1) |
|
(27)
|
|
|
(15)
|
|
Payments of debt
|
|
(198)
|
|
|
(354)
|
|
Payments of financing and credit facility fees
|
|
-
|
|
|
(3)
|
|
|
|
Net cash used in financing activities
|
|
(297)
|
|
|
(393)
|
|
|
|
|
|
|
|
|
Net decrease (increase) in cash and cash equivalents
|
|
(106)
|
|
|
50
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
369
|
|
|
319
|
|
|
|
End of period
|
$
|
263
|
|
$
|
369
|
| RESOLUTE FOREST PRODUCTS INC. |
| STATEMENTS OF OPERATING INCOME AND NET INCOME ADJUSTED FOR SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
A reconciliation of our operating income, net income and net income per
share reported before special items
is presented in the tables below. See Note 7 to the Unaudited
Consolidated Financial Statement Information
regarding our use of non-GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2012
(unaudited, in millions except per share amounts) | Operating
income (loss) |
| Net income (loss) |
| EPS |
|
|
|
|
|
| | |
|
|
| GAAP as reported | $ | (46) |
| $ | (36) |
| $ | (0.38) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for special items:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss
|
|
-
|
|
|
3
|
|
|
0.03
|
|
|
Severance
|
|
2
|
|
|
1
|
|
|
0.01
|
|
|
Closure costs, impairment and other related charges
|
|
82
|
|
|
60
|
|
|
0.63
|
|
|
Inventory write-downs related to closures
|
|
5
|
|
|
4
|
|
|
0.04
|
|
|
Start up costs of idled mill
|
|
8
|
|
|
6
|
|
|
0.06
|
|
|
Net gain on disposition of assets
|
|
(7)
|
|
|
(6)
|
|
|
(0.06)
|
|
|
Post-emergence costs
|
|
-
|
|
|
4
|
|
|
0.04
|
|
|
Transaction costs
|
|
1
|
|
|
1
|
|
|
0.01
|
|
|
Other income, net
|
|
-
|
|
|
(6)
|
|
|
(0.06)
|
|
|
Reorganization-related and other tax adjustments
|
|
-
|
|
|
3
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as adjusted for special items
|
$
|
45
|
|
$
|
34
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2011
(unaudited, in millions except per share amounts) | Operating
income (loss) |
| Net income (loss) |
| EPS |
|
|
|
|
|
|
|
|
| |
| GAAP as reported | $ | 47 |
| $ | (6) |
| $ | (0.06) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for special items:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
-
|
|
|
(13)
|
|
|
(0.13)
|
|
|
Closure costs, impairment and other related charges
|
|
12
|
|
|
6
|
|
|
0.06
|
|
|
Inventory write-downs related to closures
|
|
2
|
|
|
2
|
|
|
0.02
|
|
|
Post-emergence costs
|
|
-
|
|
|
9
|
|
|
0.09
|
|
|
Transaction costs
|
|
5
|
|
|
4
|
|
|
0.04
|
|
|
Other income, net
|
|
-
|
|
|
(5)
|
|
|
(0.05)
|
|
|
Reorganization-related and other tax adjustments
|
|
-
|
|
|
48
|
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as adjusted for special items
|
$
|
66
|
|
$
|
45
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2012
(unaudited, in millions except per share amounts) | Operating
income (loss) |
| Net income (loss) |
| EPS |
|
|
|
|
|
|
|
|
|
|
| GAAP as reported | $ | (30) |
| $ | (2) |
| $ | (0.02) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for special items:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
-
|
|
|
(23)
|
|
$
|
(0.24)
|
|
|
Severance
|
|
5
|
|
|
4
|
|
$
|
0.04
|
|
|
Closure costs, impairment and other related charges
|
|
180
|
|
|
112
|
|
$
|
1.15
|
|
|
Inventory write-downs related to closures
|
|
12
|
|
|
7
|
|
$
|
0.07
|
|
|
Start up costs of idled mill
|
|
13
|
|
|
10
|
|
$
|
0.10
|
|
|
Net gain on disposition of assets
|
|
(35)
|
|
|
(22)
|
|
$
|
(0.22)
|
|
|
Post-emergence costs
|
|
-
|
|
|
9
|
|
$
|
0.09
|
|
|
Transaction costs
|
|
8
|
|
|
8
|
|
$
|
0.08
|
|
|
Other income, net
|
|
-
|
|
|
(11)
|
|
$
|
(0.11)
|
|
|
Reorganization-related and other tax adjustments
|
|
-
|
|
|
(13)
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as adjusted for special items
|
$
|
153
|
|
$
|
79
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2011
(unaudited, in millions except per share amounts) | Operating
income (loss) |
| Net income (loss) |
| EPS |
|
| |
|
|
|
| |
|
|
| GAAP as reported | $ | 198 |
| $ | 41 |
| $ | 0.42 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for special items:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss
|
|
-
|
|
|
23
|
|
|
0.24
|
|
|
Severance
|
|
12
|
|
|
8
|
|
|
0.08
|
|
|
Closure costs, impairment and other related charges
|
|
46
|
|
|
32
|
|
|
0.33
|
|
|
Inventory write-downs related to closures
|
|
3
|
|
|
2
|
|
|
0.02
|
|
|
Net gain on disposition of assets
|
|
(3)
|
|
|
(2)
|
|
|
(0.02)
|
|
|
Post-emergence costs
|
|
-
|
|
|
34
|
|
|
0.35
|
|
|
Transaction costs
|
|
5
|
|
|
4
|
|
|
0.05
|
|
|
Other income, net
|
|
-
|
|
|
(14)
|
|
|
(0.15)
|
|
|
Reorganization-related and other tax adjustments
|
|
-
|
|
|
38
|
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as adjusted for special items
|
$
|
261
|
|
$
|
166
|
|
$
|
1.71
|
| RESOLUTE FOREST PRODUCTS INC. |
| STATEMENTS OF EBITDA AND ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of our net income including noncontrolling interests to
EBITDA and Adjusted EBITDA is presented in the tables below.
|
|
See Note 7 to the Unaudited Consolidated Financial Statement Information
regarding our use of non-GAAP measures EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2012
(unaudited, in millions) | Newsprint |
| Coated papers |
| Specialty
papers |
| Market pulp |
| Wood products |
| Corporate and
other |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
$
|
18
|
|
$
|
3
|
|
$
|
8
|
|
$
|
-
|
|
$
|
14
|
|
$
|
(78)
|
|
$
|
(35)
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
15
|
|
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(26)
|
|
|
(26)
|
|
Depreciation, amortization and cost of timber harvested
|
|
18
|
|
|
9
|
|
|
11
|
|
|
13
|
|
|
8
|
|
|
|
|
|
59
|
| EBITDA |
| 36 |
|
| 12 |
|
| 19 |
|
| 13 |
|
| 22 |
|
| (89) |
|
| 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
4
|
|
Severance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
Closure costs, impairment and other related charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
|
|
|
82
|
|
Inventory write-downs related to closures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
Start up costs of idled mill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
8
|
|
Net gain on disposition of assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
|
(7)
|
|
Post-emergence costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
4
|
|
Transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA | $ | 36 |
| $ | 12 |
| $ | 19 |
| $ | 13 |
| $ | 22 |
| $ | 2 |
| $ | 104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2011
(unaudited, in millions) | Newsprint |
| Coated papers |
| Specialty
papers |
| Market pulp |
| Wood products |
| Corporate and
other |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
$
|
26
|
|
$
|
13
|
|
$
|
24
|
|
$
|
12
|
|
$
|
(5)
|
|
$
|
(80)
|
|
$
|
(10)
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
18
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
|
|
|
42
|
|
Depreciation, amortization and cost of timber harvested
|
|
18
|
|
|
9
|
|
|
13
|
|
|
8
|
|
|
8
|
|
|
|
|
|
56
|
| EBITDA |
| 44 |
|
| 22 |
|
| 37 |
|
| 20 |
|
| 3 |
|
| (20) |
|
| 106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
|
|
(9)
|
|
Closure costs, impairment and other related charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
12
|
|
Inventory write-downs related to closures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
Post-emergence costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
12
|
|
Transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA | $ | 44 |
| $ | 22 |
| $ | 37 |
| $ | 20 |
| $ | 3 |
| $ | (4) |
| $ | 122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2012
(unaudited, in millions) | Newsprint |
| Coated papers |
| Specialty
papers |
| Market pulp |
| Wood products |
| Corporate and
other |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
$
|
97
|
|
$
|
9
|
|
$
|
76
|
|
$
|
(50)
|
|
$
|
26
|
|
$
|
(194)
|
|
$
|
(36)
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
66
|
|
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38)
|
|
|
(38)
|
|
Depreciation, amortization and cost of timber harvested
|
|
72
|
|
|
37
|
|
|
46
|
|
|
44
|
|
|
34
|
|
|
|
|
|
233
|
| EBITDA |
| 169 |
|
| 46 |
|
| 122 |
|
| (6) |
|
| 60 |
|
| (166) |
|
| 225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17)
|
|
|
(17)
|
|
Severance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
Closure costs, impairment and other related charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
180
|
|
|
180
|
|
Inventory write-downs related to closures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
12
|
|
Start up costs of idled mill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
13
|
|
Net gain on disposition of assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35)
|
|
|
(35)
|
|
Post-emergence costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
11
|
|
Transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
8
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16)
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA | $ | 169 |
| $ | 46 |
| $ | 122 |
| $ | (6) |
| $ | 60 |
| $ | (5) |
| $ | 386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2011
(unaudited, in millions) | Newsprint |
| Coated papers |
| Specialty
papers |
| Market pulp |
| Wood products |
| Corporate and
other |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
$
|
89
|
|
$
|
57
|
|
$
|
62
|
|
$
|
85
|
|
$
|
(25)
|
|
$
|
(229)
|
|
$
|
39
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95
|
|
|
95
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
16
|
|
Depreciation, amortization and cost of timber harvested
|
|
73
|
|
|
35
|
|
|
49
|
|
|
30
|
|
|
33
|
|
|
|
|
|
220
|
| EBITDA |
| 162 |
|
| 92 |
|
| 111 |
|
| 115 |
|
| 8 |
|
| (118) |
|
| 370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
21
|
|
Severance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
12
|
|
Closure costs, impairment and other related charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
|
|
|
46
|
|
Inventory write-downs related to closures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
Net gain on disposition of assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
(3)
|
|
Post-emergence costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47
|
|
|
47
|
|
Transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA | $ | 162 |
| $ | 92 |
| $ | 111 |
| $ | 115 |
| $ | 8 |
| $ | (7) |
| $ | 481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESOLUTE FOREST PRODUCTS INC.
Notes to the Unaudited Consolidated Financial Statement Information
|
1.
|
Acquisition of Fibrek Inc.
|
|
|
|
|
|
On December 15, 2011, we announced an offer to purchase all of the
issued and outstanding shares of Fibrek Inc. ("Fibrek"), a producer and
marketer of virgin and recycled kraft pulp, operating three mills. Our
acquisition of Fibrek has been achieved in stages. In connection with
the offer, as of April 23, 2012, we had taken up and accepted for
payment approximately 48.8% of the then outstanding Fibrek shares. On
May 2, 2012, we took up and accepted for payment additional shares of
Fibrek, after which we owned a controlling interest (approximately
50.1% of the then outstanding Fibrek shares) and Fibrek became a
consolidated subsidiary. We subsequently acquired additional shares of
Fibrek and, as of May 17, 2012 (the date the offer expired), we owned
approximately 74.6% of the then outstanding Fibrek shares. On July 31,
2012, we completed the second step transaction for the remaining 25.4%
of the outstanding Fibrek shares.
|
|
|
|
|
|
As aggregate consideration for all of the Fibrek shares purchased, we
distributed approximately 3.3 million shares of our common stock and
Cdn$63 million ($63 million, based on the exchange rates in effect on
each of the dates we acquired the shares of Fibrek) in cash. In
connection with the Fibrek shareholder vote on the arrangement, certain
former shareholders of Fibrek exercised (or purported to exercise)
rights of dissent in respect of the transaction, asking for a judicial
determination of the fair value of their claim under the Canada
Business Corporations Act. No consideration has to date been paid to
the former Fibrek shareholders who exercised (or purported to exercise)
rights of dissent. Any such consideration will only be paid out upon
settlement or judicial determination of the fair value of their claims
and will be paid entirely in cash. Accordingly, we cannot presently
determine the amount that ultimately may be paid to former holders of
Fibrek shares in connection with the proceedings, but we have reserved
approximately Cdn$14 million ($14 million, based on the exchange rate
in effect on December 31, 2012) for the eventual payment of those
claims. The results reported for the year ended December 31, 2012
include the financial results of Fibrek for the period from May 2, 2012
to December 31, 2012. Fibrek's results of operations are included in
the market pulp segment.
|
|
|
|
|
2.
|
Closure costs, impairment and other related charges for the years ended
December 31, 2012 and 2011 were comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions) |
Impairment
of assets
|
|
Accelerated
depreciation
|
|
Pension and
OPEB plan
curtailment and
settlement losses
|
|
Severance and
other costs
|
|
Total
|
|
Indefinite idlings:
|
|
|
|
|
|
|
|
|
|
|
|
Bowater Mersey Paper Company Limited in Nova Scotia (1) | $ 72 |
| $ - |
| $ 8 |
| $ 15 |
| $ 95 |
|
|
Kraft mill and paper machine in Fort Frances, Ontario (2) | 31 |
| 2 |
| 1 |
| 6 |
| 40 |
|
|
Paper machine in Catawba, South Carolina (2) | 1 |
| - |
| - |
| - |
| 1 |
|
Permanent closure:
|
|
|
|
|
|
|
|
|
|
|
|
Paper machine in Laurentide, Quebec
| - |
| 18 |
| - |
| 4 |
| 22 |
|
Restructuring initiatives:
|
|
|
|
|
|
|
|
|
|
|
|
Catawba paper mill
| - |
| - |
| - |
| 4 |
| 4 |
|
|
Baie-Comeau, Quebec paper mill
| - |
| - |
| 3 |
| 1 |
| 4 |
|
|
Lump-sum payments to vested terminated participants
| - |
| - |
| 7 |
| - |
| 7 |
|
Other
| 2 |
| 1 |
| 2 |
| 2 |
| 7 |
| 2012 Total | $ 106 |
| $ 21 |
| $ 21 |
| $ 32 |
| $ 180 |
|
2011 Total
|
$ 16
|
|
$ 8
|
|
$ 8
|
|
$ 14
|
|
$ 46
|
| (1) |
During 2012, we recorded long-lived asset impairment charges (including
a $7 million write-down of an asset retirement obligation for
environmental liabilities) related to the sale of our interest in
Bowater Mersey Paper Company Limited to reduce the carrying value of
our net assets to fair value less costs to sell.
|
|
|
|
| (2) |
During 2012, we recorded long-lived assets impairment charges to reduce
the carrying value of the assets to their estimated fair value, which
was determined based on the assets' estimated salvage values.
|
|
|
|
|
3.
|
During 2012, we sold two parcels of land in Gatineau, our Petit Saguenay
sawmill, our recycling division's assets located in Phoenix, Arizona,
our interest in our Mersey operations and various other assets for
total consideration of $55 million, comprised of a note receivable of
$5 million and net cash proceeds of $50 million, resulting in a net
gain on disposition of assets of $35 million.
|
|
|
|
|
4.
|
During 2012, we recorded a foreign currency translation gain of $17
million. This gain is a result of the stronger Canadian dollar relative
to the U.S. dollar at December 31, 2012 and its impact on the
translation of our Canadian dollar net monetary assets in the Company's
principal Canadian operating subsidiary.
|
|
|
|
|
5.
|
During 2012, we recorded an income tax benefit of $38 million. The
income tax benefit reflects favorable reorganization-related and other
tax adjustments, as well as foreign exchange impacts, primarily offset
by a net increase in our valuation allowances.
|
|
|
|
|
6.
|
For the calculation of basic and diluted income per share for the year
ended December 31, 2012 and 2011, no adjustments to net income
attributable to Resolute Forest Products were necessary.
|
|
|
|
|
7.
|
Tables represent a reconciliation of certain financial statement line
items reported under generally accepted accounting principles ("GAAP")
to our use of non-GAAP measures of operating income (loss), net income
(loss) and net income (loss) per share, in each case adjusted for
special items, as well as EBITDA and adjusted EBITDA, in each case by
reportable segment. We believe that these measures are useful because
they allow the reader to more easily compare our ongoing operations,
financial performance and EPS from period to period. They are also
consistent with the indicators management uses internally to measure
our performance. These non-GAAP measures should be considered in
addition to and not a substitute for measures of financial performance
calculated and presented in accordance with GAAP in our consolidated
statement of operations in our filings with the Securities and Exchange
Commission. Consequently, readers should rely on GAAP operating income
(loss), operating income (loss) by reportable segment, net income
(loss) and net income (loss) per share. Non-GAAP measures included in
our press release include:
|
|
|
|
|
|
Operating income (loss) adjusted for special items - is defined as
operating income (loss) from our Consolidated Statements of Operations
excluding special items, such as closure costs, impairment and other
related charges, severance costs, inventory write-downs, start up costs
of idled mills, gains and losses on dispositions of assets, transaction
costs and other charges or credits that are excluded from our segment's
performance from GAAP operating income (loss).
|
|
|
|
|
|
Net income (loss) adjusted for special items - is defined as net income
(loss) from our Consolidated Statements of Operations excluding the
same items as under operating income (loss) adjusted for the special
items, in addition to the effects of foreign currency translation,
post-emergence costs, other income (expense) and reorganization-related
and other tax adjustments.
|
|
|
|
|
|
Net income (loss) per share (EPS) adjusted for special items - is
defined as diluted EPS calculated based on the net income (loss)
adjusted for special items as described above.
|
|
|
|
|
|
EBITDA by reportable segment - is defined as net income (loss) including
noncontrolling interests from our Consolidated Statements of
Operations, allocated to each of our reportable segments (newsprint,
coated papers, specialty papers, market pulp and wood products) in
accordance with FASB ASC 290, "Segment Reporting," and adjusted for
depreciation, amortization and cost of timber harvested. EBITDA for
the corporate and other segment is defined as net income (loss)
including noncontrolling interests from our Consolidated Statements of
Operations after the allocation to reportable segments, adjusted for
interest expense, income taxes and depreciation, amortization and cost
of timber harvested.
|
|
|
|
|
|
Adjusted EBITDA - is defined as EBITDA excluding the special items
described above.
|
|
|
|
|
|
Certain prior period amounts within these measures have been
reclassified to conform to the 2012 presentation.
|
SOURCE: Resolute Forest Products Inc.
