NEW YORK, October 16, 2024 (GLOBE NEWSWIRE) — Mercer International Inc. (Nasdaq: NASDAQ:) (Company or Mercer) today reported preliminary financial results for the third quarter of 2024.
Preliminary Results of Quarter III
The following sets forth selected financial results for the periods indicated, including selected preliminary financial results for the three and nine months ended September 30, 2024:
| Q3 | Q2 | Q3 | YTD | YTD | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||||
| Income | $ | 502.1 | $ | 499.4 | $ | 470.8 | $ | 1.555.0 | $ | 1.523.4 | |||||||||
| Operating income (loss) | $ | 8.8 | $ | (43.8 | ) | $ | (3.4 | ) | $ | (35.4 | ) | $ | (132.4 | ) | |||||
| operating EBITDA | $ | 50.5 | $ | 30.4 | $ | 37.5 | $ | 144.5 | $ | (3.7 | ) | ||||||||
| Net loss | $ | (17.6 | ) | $ | (67.6 | ) | $ | (26.0 | ) | $ | (101.8 | ) | $ | (154.8 | ) | ||||
Liquidity
As of September 30, 2024, the Company had cash and cash equivalents of approximately $239 million, approximately $315 million available under our revolving credit facility and aggregate liquidity of approximately $554 million.
Mr. Juan Carlos Bueno, Chief Executive Officer, stated: “We continue to see strength in the softwood pulp market with relatively flat fiber costs in the third quarter of 2024. However, our operating results for the quarter were limited due to the occurrence of several unrelated events that impacted pulp production, including 23 days of unscheduled downtime (approximately 35,500 ADMT) at the Mercer Peace River mill, a slower-than-normal start of maintenance and other production disruptions at the Stendal Mill (approximately 26,500 ADMT) and isolated mechanical incidents at our Celgar plant (approximately 9,200 ADMT).
Our team was able to restart the Mercer Peace River plant slightly earlier than planned, limiting the downtime in the fourth quarter to approximately 12 days. We have no remaining planned downtime at the pulp mill for the fourth quarter of 2024.
Mr. Bueno concluded: “With the impact of the unscheduled downtime event, we are optimistic that we are in a strong position to use the continued strength of the NBSK market in pulp mills for the remainder of 2024.”
Current Market Environment
As of September 30, 2024, NBSK list prices in Europe and North America were approximately $1,535 per ADMT and $1,735 per ADMT, compared to $1,160 per ADMT and $1,270 per ADMT, respectively, as of September 30, 2023. As of September 30, 2023. , 2024, prices net NBSK in China is approximately $754 per ADMT, compared to $715 per ADMT on September 30, 2023. Prices for China are net of discounts, allowances and rebates.
US benchmark lumber prices for West SPF No. 2 and better is approximately $390 per Mfbm on September 30, 2024, compared to $407 per Mfbm on September 30, 2023. There are no comparable or common price metrics quoted in the European market.
The preliminary results shown here are unaudited, based on information available at the date, and are subject to completion of the Company’s financial reporting process. The Company has not closed its books for the three and nine months ended September 30, 2024. Therefore, the actual financial results for those periods may differ materially from the preliminary results contained herein due to the completion of financial closing procedures, final adjustments and other developments that may occur. arising between now and the time unaudited financial results for the completed period. Therefore, you should not rely on these initial estimated financial results.
Conference Call Details
Mercer will report full financial results for the third quarter of 2024 on October 31, 2024 after the market closes. The Company’s Chief Executive Officer, Juan Carlos Bueno, and Chief Financial Officer, Richard Short, will host a conference call on November 1, 2024 at 10:00 a.m. ET to discuss the results.
The conference call will be available to interested parties live over the Internet via webcast by clicking or copying and pasting the following link into your web browser: https://edge.media-server.com/mmc/p/zp8mydck A link to the webcast will also be available available in the Investor Relations section of the Company’s web page. For those unable to participate in the live webcast, a replay of the webcast will be archived and accessed via the same link on the Company’s website at https://mercerint.com/investors/events-calendar/.
To join the live call and ask questions, participants must register via desktop or mobile using the following URL: https://register.vevent.com/register/BIcd5fd2d7932445bba68bda4a2a4c2c20. After registration, participants will receive a dial-in number and a unique PIN number to access the phone or they can choose the option Call Me out to connect the phone directly. Participants are encouraged to go to the website at least 15 minutes before the call to register.
About Mercer
Mercer International Inc. is a global forest products company with operations in Germany, USA and Canada with a combined annual production capacity of 2.1 million tons of pulp, 960 million feet of wood, 210 thousand cubic meters of cross-laminated wood, 45,000 cubic meters. meters of glulam, 17 million pallets and 230,000 metric tons of biofuel. To obtain more information about the company, visit its website at https://www.mercerint.com.
operating EBITDA
Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and non-recurring capital asset impairment charges. Management uses Operating EBITDA as a benchmark measurement of its own operating results, and as a benchmark relative to competitors. Management considers it a useful addition to operating income (loss) as a measure of performance mainly because depreciation expense and non-recurring capital asset impairment charges are not actual cash costs, and depreciation expense varies from company to company in ways that management considers largely independent. from the underlying cost efficiency of our operating facilities. In addition, management believes Operating EBITDA is commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.
Operating EBITDA does not reflect the impact of several items that affect our net income (loss), including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under GAAP, and should not be considered as an alternative to net loss or operating loss as a measure of performance, or as an alternative to net cash from (used in) operating activities as a measure of liquidity. Operating EBITDA is an internal measure and therefore may not be comparable to other companies.
The following table provides a reconciliation of net loss to Operating EBITDA for the periods indicated:
| Q3 | Q2 | Q3 | YTD | YTD | |||||||||||||||
| 20241 | 2024 | 2023 | 20241 | 2023 | |||||||||||||||
| Net loss | $ | (17.6 | ) | $ | (67.6 | ) | $ | (26.0 | ) | $ | (101.8 | ) | $ | (154.8 | ) | ||||
| Provisions of income tax (recovery) | (0.1 | ) | 1.3 | 4.0 | (5.2 | ) | (28.9 | ) | |||||||||||
| Interest charges | 26.4 | 26.8 | 21.9 | 80.8 | 61.0 | ||||||||||||||
| Other expenses (income) | 0.1 | (4.3 | ) | (3.3 | ) | (9.1 | ) | (9.7 | ) | ||||||||||
| Operating income (loss) | 8.8 | (43.8 | ) | (3.4 | ) | (35.4 | ) | (132.4 | ) | ||||||||||
| Add: Depreciation and amortization | 41.6 | 39.9 | 41.0 | 122.0 | 128.7 | ||||||||||||||
| Add: Loss from disposal of investment in joint venture | “ | “ | “ | 23.6 | “ | ||||||||||||||
| Impaired goodwill | “ | 34.3 | “ | 34.3 | “ | ||||||||||||||
| operating EBITDA | $ | 50.5 | $ | 30.4 | $ | 37.5 | $ | 144.5 | $ | (3.7 | ) | ||||||||
______
(1) Preliminary results.
(2) Due to rounding, the number presented may not add up exactly to the total we provide.
The foregoing includes forward-looking statements, which involve known and unknown risks and uncertainties that could cause our actual future results to differ materially from our projected results. Words such as “hope”, “hope”, “optimistic if”, “project”, “will”, “planned”, “will”, “believe”, “estimate”, “may”, ” can” and variations. of the same words and expressions intended to identify forward-looking statements. Among the factors that could cause actual results to differ materially are: the nature of our business cycle, the cost of raw materials, our debt levels, competition, foreign exchange and interest rate fluctuations, the use of derivatives, expenditures for capital projects. , regulatory and environmental compliance, production disruptions, market conditions and other risk factors listed from time to time in our SEC reports.
APPROVED BY:
William D. McCartney
Chairman
(604) 684-1099
Juan Carlos Bueno
Chief Director
(604) 684-1099
Operating EBITDA is not a measure of financial performance under generally accepted accounting principles in the United States (“GAAP”) and should not be considered in the absence of or as a substitute for analysis of results as reported in GAAP. See “Operating EBITDA” here for more information, including the reconciliation of net loss to Operating EBITDA.
Source: Mercer International Inc.
