Canfor Pulp Products Inc. announces first quarter 2016 results and quarterly dividend

VANCOUVER, April 27, 2016

The following table summarizes selected financial information for the Company for the comparative periods:

						Q1		Q4		Q1
(millions of Canadian dollars, except per share amounts)						2016 ARIVA.DE Börsen-Geflüster Kurse CANFOR PULP PRODUCTS INC. 1,03 € -1,90%		2015		2015
Sales					$	295.3	$	330.8	$	273.8
Operating income before amortization					$	57.8	$	56.2	$	57.1
Operating income					$	39.1	$	38.6	$	41.4
Net income					$	23.1	$	29.7	$	28.0
Net income per share, basic and diluted					$	0.34	$	0.43	$	0.40
Adjusted net income					$	23.1	$	29.0	$	35.0
Adjusted net income per share, basic and diluted					$	0.34	$	0.42	$	0.50

The Company had no items affecting comparability in the first quarter of 2016.  After adjusting for such items in the comparative periods, adjusted net income was $29.0 million, or $0.42 per share, for the fourth quarter of 2015 and $35.0 million, or $0.50 per share, for the first quarter of 2015.

The Company reported operating income of $39.1 million for the first quarter of 2016, up $0.5 million from $38.6 million reported for the fourth quarter of 2015.  Results in the first quarter of 2016 reflected lower unit manufacturing costs, principally from lower fibre costs and the impact of the scheduled maintenance outage at the Northwood pulp mill in the previous quarter as well as improved paper segment earnings.  Offsetting these factors were lower Northern Bleached Softwood Kraft ("NBSK") pulp shipment volumes and slightly lower NBSK pulp unit sales realizations in the current quarter.

Global softwood pulp markets were relatively balanced through the first quarter of 2016 as increased customer restocking absorbed additional supply resulting from minimal maintenance downtime in the period.  The average North American US-dollar NBSK pulp list price, as published by RISI, was relatively unchanged compared to the fourth quarter of 2015, while the average price to China was down US$10 per tonne, or 2%.  NBSK pulp unit sales realizations were slightly lower in the current quarter as the favourable impact of a 3% weaker Canadian dollar was more than offset by lower transaction prices which reflected slightly higher discounts and a less favourable regional sales mix in the first quarter of 2016.  Bleached Chemi-Thermo Mechanical Pulp ("BCTMP") list prices were lower in the first quarter of 2016; however, BCTMP unit sales realizations improved slightly from the previous quarter reflecting the weaker Canadian dollar and a more favourable sales mix in the quarter.  Contributions from the Company's energy business were slightly lower in the current quarter reflecting fewer operating days. 

Total pulp shipments were 10% lower principally reflecting a drawdown in finished inventory levels in the fourth quarter of 2015 as well as fewer operating days in the current quarter.  NBSK pulp production was broadly in line with the previous quarter reflecting similar operating rates to the fourth quarter of 2015.  In the previous quarter, the impact of the scheduled maintenance outage at the Northwood pulp mill, which reduced market pulp production by 20,000 tonnes, was largely offset by additional operating days in the fourth quarter of 2015.  NBSK pulp unit manufacturing costs were moderately lower in the current quarter principally a result of lower fibre, maintenance and energy costs.  BCTMP production volumes were consistent with the previous quarter while unit manufacturing costs were slightly lower. 

Operating income in the Company's paper segment was up $2.0 million from the previous quarter to $8.9 million in the first quarter of 2016 largely reflecting the positive impact of the weaker Canadian dollar on unit sales realizations and an increased proportion of higher-priced prime bleached paper shipments.

During the first quarter of 2016, the Company continued to return cash to its shareholders through both its normal course issuer bid and a quarterly dividend.  In total, the Company purchased 412,673 common shares and paid a dividend of $0.0625 per share returning a total of $9.3 million to common shareholders in the quarter. 

Commenting on the Company's first quarter results, CPPI's Chief Executive Officer, Don Kayne said, "Canfor Pulp continues to generate strong free cash flow, with results in the current quarter reflecting a solid operational performance."

Looking ahead, relatively balanced global softwood pulp markets heading into the annual spring maintenance period may support a modest NBSK pulp price increase through the second quarter of 2016.  In the latter half of 2016, there remains a risk of price weakness due in part to previously announced significant new global pulp capacity coming online.  For May 2016, the Company announced NBSK pulp list prices of US$980 per tonne in North America an increase of US$30 per tonne from March 2016.  The recent strengthening of the Canadian dollar is anticipated to offset improvements in US-dollar prices in the second quarter of 2016.

Results in the second quarter of 2016 will be impacted by maintenance outages planned at the Northwood and Intercontinental pulp mills, with a projected 38,000 tonnes of reduced NBSK pulp production, higher associated maintenance costs and lower projected shipment volumes.  The Prince George pulp mill has a maintenance outage scheduled for the third quarter of 2016 and the Taylor BCTMP mill will complete a maintenance outage in the fourth quarter of 2016.

On April 26, 2016, the Board of Directors declared a quarterly dividend of $0.0625 per share, payable on May 17, 2016 to the shareholders of record on May 10, 2016.

Additional Information and Conference Call 
A conference call to discuss the first quarter's financial and operating results will be held on Thursday, April 28, 2016 at 8:00 AM Pacific time.  To participate in the call, please dial 416-764-8688 or Toll-Free 888-390-0546.  For instant replay access until May 12, 2016, please dial 888-390-0541 and enter participant pass code 507712#.  The conference call will be webcast live and will be available at www.canfor.com.  This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company's website at http://www.canfor.com/investor-relations/overview.  

Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements.  Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements are based on management's current expectations and beliefs and actual events or results may differ materially.  There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements.  Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.

CPPI is a leading global supplier of pulp and paper products with operations in the central interior of British Columbia ("BC") employing approximately 1,300 people throughout the organization.  Canfor Pulp owns and operates three mills in Prince George, BC with a total capacity of 1.1 million tonnes of Premium Reinforcing Northern Bleached Softwood Kraft Pulp and 140,000 tonnes of kraft paper, as well as one mill in Taylor, BC with an annual production capacity of 220,000 tonnes of Bleached Chemi-Thermo Mechanical Pulp ("BCTMP").  Canfor Pulp is the largest North American, and one of the largest global producers of market NBSK Pulp.  CPPI shares are traded on the Toronto Stock Exchange under the symbol CFX.

Canfor Pulp Products Inc.
First Quarter 2016
Management's Discussion and Analysis

This interim Management's Discussion and Analysis ("MD&A") provides a review of Canfor Pulp Products Inc.'s ("CPPI" or "the Company") financial performance for the quarter ended March 31, 2016 relative to the quarters ended December 31, 2015 and March 31, 2015, and the financial position of the Company at March 31, 2016.  It should be read in conjunction with CPPI's unaudited interim consolidated financial statements and accompanying notes for the quarters ended March 31, 2016 and 2015, as well as the 2015 annual MD&A and the 2015 audited consolidated financial statements and notes thereto, which are included in CPPI's Annual Report for the year ended December 31, 2015 (available at www.canfor.com). The financial information in this interim MD&A has been prepared in accordance with International Financial Reporting Standards ("IFRS"), which is the required reporting framework for Canadian publicly accountable enterprises.

Throughout this discussion, reference is made to Operating Income (Loss) before Amortization which CPPI considers to be a relevant indicator for measuring trends in the Company's performance and its ability to generate funds to meet its debt service and capital expenditure requirements, and to pay dividends.  Reference is also made to Adjusted Net Income (Loss) (calculated as Net Income (Loss) less specific items affecting comparability with prior periods – for the full calculation, see the reconciliation included in the section "Analysis of Specific Material Items Affecting Comparability of Net Income (Loss)") and Adjusted Net Income (Loss) per Share (calculated as Adjusted Net Income (Loss) divided by the weighted average number of shares outstanding during the period).  Operating Income (Loss) before Amortization, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share are not generally accepted earnings measures and should not be considered as an alternative to net income or cash flows as determined in accordance with IFRS.  As there is no standardized method of calculating these measures, CPPI's Operating Income (Loss) before Amortization, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share may not be directly comparable with similarly titled measures used by other companies.  Reconciliations of Operating Income (Loss) before Amortization to Operating Income (Loss) and Adjusted Net Income (Loss) to Net Income (Loss) reported in accordance with IFRS are included in this MD&A.  Throughout this discussion reference is made to the current quarter which refers to the results for the first quarter of 2016.

Factors that could impact future operations are also discussed.  These factors may be influenced by both known and unknown risks and uncertainties that could cause the actual results to be materially different from those stated in this discussion.  Factors that could have a material impact on any future oriented statements made herein include, but are not limited to: general economic, market and business conditions; product selling prices; raw material and operating costs; currency exchange rates; interest rates; changes in law and public policy; the outcome of labour and trade disputes; and opportunities available to or pursued by CPPI.

All financial references are in millions of Canadian dollars unless otherwise noted.  The information in this report is as at April 26, 2016. 

Forward Looking Statements

Certain statements in this MD&A constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements.  Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements are based on management's current expectations and beliefs and actual events or results may differ materially.  There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements.  Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.

FIRST QUARTER 2016 OVERVIEW
Selected Financial Information and Statistics

							Q1		Q4		Q1
(millions of Canadian dollars, except per share amounts)							2016		2015		2015
Operating income (loss) by segment:
	Pulp					$	33.0	$	34.4	$	36.3
	Paper					$	8.9	$ Werbung Mehr Nachrichten zur CANFOR PULP PRODUCTS INC. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:29 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc 08:29 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59