Domtar Corporation reports preliminary first quarter 2012 financial results

Trough pulp prices and higher costs affect first quarter results
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted.)

  • First quarter 2012 net earnings of $0.76 per share, earnings before items1 of $1.65 per share
  • Signed an historic 15-year supply agreement with Appleton Papers
  • Acquired Attends Healthcare Limited ("Attends Europe")

TICKER SYMBOL
(NYSE: UFS) (TSX: UFS)

MONTREAL, April 26, 2012 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $28 million ($0.76 per share) for the first quarter of 2012 compared to net earnings of $61 million ($1.63 per share) for the fourth quarter of 2011 and net earnings of $133 million ($3.14 per share) for the first quarter of 2011. Sales for the first quarter of 2012 amounted to $1.4 billion.

Excluding items listed below, the Company had earnings before items1 of $61 million ($1.65 per share) for the first quarter of 2012 compared to earnings before items1 of $93 million ($2.49 per share) for the fourth quarter of 2011 and earnings before items1 of $138 million ($3.25 per share) for the first quarter of 2011.

First quarter 2012 items:

  • Premium paid and costs related to the debt repurchase of $50 million ($30 million after tax);
  • Closure and restructuring costs, including write-down of property, plant and equipment, of $3 million ($2 million after tax); and
  • Negative impact of purchase accounting of $1 million ($1 million after tax).

Fourth quarter 2011 items:

  • Closure and restructuring costs of $38 million ($23 million after tax), mostly related to the restructuring of certain U.S. pension benefit plans; and
  • Charge of $12 million ($9 million after tax) related to the impairment and write-down of property, plant and equipment.

First quarter 2011 items:

  • Closure and restructuring costs of $11 million ($8 million after tax);
  • Gain on the sale of property, plant and equipment and business of $7 million ($5 million after tax); and
  • Charge of $3 million ($2 million after tax) related to the impairment and write-down of property, plant and equipment.

"Our businesses performed well in the quarter, but cyclically low prices in global pulp markets and higher costs affected results," said John D. Williams, President and Chief Executive Officer. "On strategy, we announced and completed the acquisition of Attends Europe further expanding our Personal Care segment and we announced an innovative 15-year supply agreement with Appleton Papers that will result in the conversion of high volume communication paper capacity to specialty paper grades, securing a growing business long-term."

QUARTERLY REVIEW

Operating income before items1 was $113 million in the first quarter of 2012 compared to an operating income before items1 of $148 million in the fourth quarter of 2011. Depreciation and amortization totaled $97 million in the first quarter of 2012.

(In millions of dollars)   1Q 2012   4Q 2011
Sales   $1,398   $1,369
Operating income (loss)        
  Pulp and Paper segment   107   92
  Distribution segment   (1)   -
  Personal Care segment   8   7
  Corporate   (5)   -
  Total   109   99
Operating income before items1   113   148
Depreciation and amortization   97   95


The decrease in operating income before items1 in the first quarter of 2012 was the result of lower selling prices for paper and pulp, higher input costs, transaction costs and the negative impact of a stronger Canadian dollar. These factors were partially offset by higher shipments for papers and lower maintenance costs.

When compared to the fourth quarter of 2011, paper shipments increased 4.7% and pulp shipments decreased 3.5%. Paper deliveries of ArivaTM increased 5.1% when compared to the fourth quarter of 2011. The shipments-to-production ratio for paper was 100% in the first quarter of 2012, compared to 95% in the fourth quarter of 2011. Paper inventories decreased by 1,000 tons while pulp inventories decreased by 26,000 metric tons as at the end of March, compared to December levels.

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $30 million and capital expenditures amounted to $29 million, resulting in free cash flow1 of $1 million for the first quarter of 2012. Domtar's net debt-to-total capitalization ratio1 stood at 18% at March 31, 2012 compared to 12% at December 31, 2011.

In the first quarter of 2012, Domtar paid $47 million in premiums in relation to the completion of a tender offer for certain outstanding Notes.  Excluding these premiums, free cash flow was $48 million for the period ended March 31, 2012.

OUTLOOK

Price realizations in pulp are expected to improve from trough first quarter prices as a result of recently announced price increases. In paper, both volumes and prices are expected to positively impact results due to new business in specialty and packaging papers and price increases in the process of being implemented. The second quarter will be affected by the usual seasonal higher maintenance activity.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its first quarter 2012 financial results. Financial analysts are invited to participate in the call by dialing at least 10 minutes before start time 1 (866) 321-8231 (toll free - North America) or 1 (416) 642-5213 (International), while media and other interested individuals are invited to listen to the live webcast on the Domtar Corporation website at www.domtar.com.

The Company will release its second quarter 2012 earnings on July 27, 2012 before markets open, followed by a conference call at 10:00 a.m. (ET) to discuss results. The date is tentative and will be confirmed approximately three weeks prior to the official earnings release date.

About Domtar
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends® brand name. Domtar owns and operates ArivaTM, an extensive network of strategically located paper and printing supplies distribution facilities. In 2011, Domtar had sales of US$5.6 billion from nearly 50 countries. The Company employs approximately 9,100 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Q's. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

_____________________________________
1  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.


Domtar Corporation    
Highlights    
(In millions of dollars, unless otherwise noted)    
     
     
  Three months
ended March 31
Three months
ended March 31
  2012 2011
  (Unaudited)
  $ $
     
Selected Segment Information    
Sales    
    Pulp and Paper 1,191 1,269
    Distribution 189 217
    Personal Care 70 -
Total for reportable segments 1,450 1,486
    Intersegment sales - Pulp and Paper (52) (63)
Consolidated sales 1,398 1,423
Depreciation and amortization and impairment and write-down of property, plant and equipment    
    Pulp and Paper 93 92
    Distribution 1 1
    Personal Care 3 -
Total for reportable segments 97 93
    Impairment and write-down of property, plant and equipment - Pulp and Paper 2 3
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment 99 96
     
Operating income (loss)    
    Pulp and Paper 107 209
    Distribution (1) 3
    Personal Care 8 -
    Corporate (5) (1)
Consolidated operating income 109 211
Interest expense, net 71 21
Earnings before income taxes and equity earnings 38 190
Income tax expense 8 57
Equity loss, net of taxes 2 -
Net earnings 28 133
     
Per common share (in dollars)    
   Net earnings    
    Basic 0.76 3.16
    Diluted 0.76 3.14
Weighted average number of common and exchangeable shares outstanding (millions)    
    Basic 36.7 42.1
    Diluted 37.0 42.4
     
Cash flows provided from operating activities 30 148
Additions to property, plant and equipment 29 13


Domtar Corporation    
Consolidated Statements of Earnings and Comprehensive Income    
(In millions of dollars, unless otherwise noted)    
     
     
  Three months
ended March 31
Three months
ended March 31
  2012 2011
  (Unaudited)
  $ $
     
Sales 1,398 1,423
Operating expenses    
  Cost of sales, excluding depreciation and amortization 1,088 1,021
  Depreciation and amortization 97 93
  Selling, general and administrative 99 90
  Impairment and write-down of property, plant and equipment 2 3
  Closure and restructuring costs 1 11
  Other operating loss (income), net 2 (6)
  1,289   1,212
Operating income 109 211
Interest expense, net 71 21
Earnings before income taxes and equity earnings 38 190
Income tax expense 8 57
Equity loss, net of taxes 2 -
Net earnings 28 133
     
Per common share (in dollars)    
  Net earnings     
  Basic 0.76 3.16
  Diluted 0.76 3.14
Weighted average number of common and exchangeable shares outstanding (millions)    
  Basic 36.7 42.1
  Diluted 37.0 42.4
     
Net earnings  28  133
Other comprehensive income:    
  Net derivative gains on cash flow hedges:    
    Net gain arising during the period, net of tax of $(1) and $1 - 4
    Less: Reclassification adjustment for losses included in net earnings, net of tax of $1 and $1 3 -
  Foreign currency translation adjustments 19 24
Comprehensive income 50 161


Domtar Corporation    
Consolidated Balance Sheets at    
(In millions of dollars)    
     
  March 31 December 31
  2012 2011
  (Unaudited)
  $ $
Assets    
Current assets    
  Cash and cash equivalents   315 444
  Receivables, less allowances of $5 and $5 697 644
  Inventories 676 652
  Prepaid expenses 26 22
  Income and other taxes receivable 43 47
  Deferred income taxes 127 125
    Total current assets 1,884 1,934
     
  Property, plant and equipment, at cost 8,613 8,448
  Accumulated depreciation (5,129) (4,989)
    Net property, plant and equipment 3,484 3,459
Goodwill 234 163
Intangible assets, net of amortization 328 204
Other assets 108 109
    Total assets 6,038 5,869
     
Liabilities and shareholders' equity    
Current liabilities      
  Bank indebtedness 13 7
  Trade and other payables 637 688
  Income and other taxes payable 19 17
  Long-term debt due within one year 6 4
    Total current liabilities 675 716
     
Long-term debt 952 837
Deferred income taxes and other 968 927
Other liabilities and deferred credits 434 417
     
Shareholders' equity    
  Exchangeable shares 49 49
  Additional paid-in capital 2,326 2,326
  Retained earnings 686 671
  Accumulated other comprehensive loss (52) (74)
    Total shareholders' equity 3,009 2,972
      Total liabilities and shareholders' equity 6,038 5,869


Domtar Corporation    
Consolidated Statements of Cash Flows      
(In millions of dollars)      
     
     
  Three months
ended March 31
Three months
ended March 31
  2012 2011
  (Unaudited)
  $ $
     
Operating activities    
Net earnings 28 133
Adjustments to reconcile net earnings to cash flows from operating activities    
  Depreciation and amortization 97 93
  Deferred income taxes and tax uncertainties 3 29
  Impairment and write-down of property, plant and equipment 2 3
  Gain on repurchase of long-term debt - -
  Net gains on disposals of property, plant and equipment and sale of business - (7)
  Stock-based compensation expense 1 1
  Equity loss, net 2 -
  Other (3) 1
Changes in assets and liabilities, excluding the effects of acquisition
and sale of business
   
  Receivables (36) (111)
  Inventories 1 1
  Prepaid expenses - (1)
  Trade and other payables (85) (29)
  Income and other taxes  6 23
  Difference between employer pension and other post-retirement
contributions and pension and other post-retirement expense
4 2
  Other assets and other liabilities 10 10
  Cash flows provided from operating activities 30 148
     
Investing activities    
Additions to property, plant and equipment (29) (13)
Proceeds from disposals of property, plant and equipment - 9
Proceeds from sale of business - 4
Acquisition of business, net of cash acquired (232) -
Other (2) -
  Cash flows used for from investing activities (263) -
     
Financing activities    
Dividend payments (13) (11)
Net change in bank indebtedness 6 3
Issuance of long-term debt 300 -
Repayment of long-term debt (187) (1)
Stock repurchase (4) (69)
Other 2 4
  Cash flows provided from (used for) financing activities 104 (74)
     
Net (decrease) increase in cash and cash equivalents (129) 74
Cash and cash equivalents at beginning of period 444 530
Cash and cash equivalents at end of period 315 604
     
Supplemental cash flow information    
  Net cash payments for:    
    Interest 18 14
    Income taxes paid 9 2



Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization." Management believes that the financial metrics presented are frequently used by investors and are useful to evaluate our ability to service debt and our overall credit profile. Management believes these metrics are also useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates "Earnings before items" and "EBITDA before items" by excluding the after-tax (pre-tax) effect of items considered by management as not reflecting our current operations. Management uses these measures, as well as EBITDA and Free cash flow, to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Net earnings provides for a more complete analysis of the results of operations. Net earnings and Cash flow provided from operating activities are the most directly comparable GAAP measures.

                 
    2012   2011
    Q1   Q1 Q2 Q3 Q4 YTD
Reconciliation of "Earnings before items" to Net earnings                
    Net earnings ($) 28   133 54 117 61 365
  (+) Impairment and write-down of property, plant and equipment ($) 1   2 38 4 9 53
  (+) Closure and restructuring costs ($) 1   8 1 1 23 33
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of business ($) -   (5) 5 (3) - (3)
  (+) Impact of purchase accounting ($) 1   - - 1 - 1
  (+) Loss on repurchase of long-term debt ($) 30   - - 3 - 3
  (=) Earnings before items ($) 61   138 98 123 93 452
  ( / ) Weighted avg. number of common and exchangeable shares outstanding (diluted) (millions) 37.0   42.4 41.4 39.7 37.4 40.2
  (=) Earnings before items per diluted share ($) 1.65   3.25 2.37 3.10 2.49 11.24
                 
Reconciliation of "EBITDA" and "EBITDA before items" to Net earnings                
    Net earnings ($) 28   133 54 117 61 365
  (+) Equity loss, net of taxes ($) 2   - - - 7 7
  (+) Income tax expense ($) 8   57 20 45 11 133
  (+) Interest expense, net ($) 71   21 21 25 20 87
  (=) Operating income ($) 109   211 95 187 99 592
  (+) Depreciation and amortization ($) 97   93 95 93 95 376
  (+) Impairment and write-down of property, plant and equipment ($) 2   3 62 8 12 85
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of business ($) -    (7) 6 (4) (1) (6)
  (=) EBITDA ($) 208   300 258 284 205 1,047
  (/) Sales ($) 1,398   1,423 1,403 1,417 1,369 5,612
  (=) EBITDA margin (%) 15%   21% 18% 20% 15% 19%
    EBITDA ($) 208   300 258 284 205 1,047
  (+) Closure and restructuring costs ($) 1   11 2 1 38 52
  (+) Impact of purchase accounting ($) 1   - - 1 - 1
  (=) EBITDA before items ($) 210   311 260 286 243 1,100
  (/) Sales ($) 1,398   1,423 1,403 1,417 1,369 5,612
  (=) EBITDA margin before items (%) 15%   22% 19% 20% 18% 20%
                     
Reconciliation of "Free cash flow" to Cash flow provided from operating activities                
    Cash flow provided from operating activities ($) 30   148 306 257 172 883
  (-) Additions to property, plant and equipment ($) (29)   (13) (20) (31) (80) (144)
  (=) Free cash flow ($) 1   135 286 226 92 739
                     
"Net debt-to-total capitalization" computation                
    Bank indebtedness ($) 13   25 25 17 7  
  (+) Long-term debt due within one year ($) 6   2 2 5 4  
  (+) Long-term debt ($) 952   825 824 837 837  
  (=) Debt ($) 971   852 851 859 848  
  (-) Cash and cash equivalents ($) (315)   (604) (742) (461) (444)  
  (=) Net debt ($) 656   248 109 398 404  
  (+) Shareholders' equity ($) 3,009   3,288 3,194 2,999 2,972  
  (=) Total capitalization ($) 3,665   3,536 3,303 3,397 3,376  
    Net debt ($) 656   248 109 398 404  
  ( / ) Total capitalization ($) 3,665   3,536 3,303 3,397 3,376  
  (=) Net debt-to-total capitalization (%) 18%   7% 3% 12% 12%  


"Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings, Operating income or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2012
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP"), financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

                                                     
    Pulp and Paper Distribution Personal Care (1) Corporate Total
    Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD
Reconciliation of Operating income (loss) to "Operating income (loss) before items"                                                        
    Operating income (loss) ($) 107 - - - 107 (1) - - - (1) 8 - - 8 (5) - - - (5) 109 - - - 109
  (+) Impairment and write-down of property, plant and equipment ($) 2 - - - 2 - - - - - - - - - - - - - - - 2 - - - 2
  (+) Closure and restructuring costs ($) 1 - - - 1 - - - - - - - - - - - - - - - 1 - - - 1
  (+) Impact of purchase accounting ($) - - - - - - - - - - 1 - - - 1 - - - - - 1 - - - 1
                                                         
  (=) Operating income (loss) before items ($) 110 - - - 110 (1) - - - (1) 9 - - - 9 (5) - - - (5) 113 - - - 113
                                                         
Reconciliation of "Operating income (loss) before items" to "EBITDA before items"                                                        
    Operating income (loss) before items ($) 110 - - - 110 (1) - - - (1) 9 - - - 9 (5) - - - (5) 113 - - - 113
  (+) Depreciation and amortization ($) 93 - - - 93 1 - - - 1 3 - - 3 - - - - - 97 - - - 97
                                                         
  (=) EBITDA before items ($) 203 - - - 203 - - - - - 12 - - - 12 (5) - - - (5) 210 - - - 210
  (/) Sales ($) 1,191 - - - 1,191 189 - - - 189 70 - - - 70 - - - - - 1,450 - - - 1,450
  (=) EBITDA margin before items (%) 17% - - - 17% - - - - - 17% - - - 17% - - - - - 14% - - - 14%
                                                           
                                         


"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

(1) On March 1, 2012, the Company acquired 100% of the shares of Attends Healthcare Limited. 

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2011
(In millions of dollars, unless otherwise noted)


The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP"), financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry.
These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations.
Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods.
Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

 

                                                         
        Pulp and Paper Distribution Personal Care (1) Corporate Total
        Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD
Reconciliation of Operating income (loss) to "Operating income (loss) before items"                                                      
    Operating income (loss) ($) 209 91 189 92 581 3 (2) (1) - - - - - 7 7 (1) 6 (1) - 4 211 95 187 99 592
  (+) Impairment and write-down of property, plant and equipment ($) 3 62 8 12 85 - - - - - - - - - - - - - - - 3 62 8 12 85
  (+) Closure and restructuring costs ($) 11 2 1 37 51 - - - 1 1 - - - - - - - - - - 11 2 1 38 52
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of business ($) (4) 12 (4) (1) 3 (3) - - - (3) - - - - - - (6) - - (6) (7) 6 (4) (1) (6)
  (+) Impact of purchase accounting ($) - - - - - - - - - - - - 1 - 1 - - - - - - - 1 - 1
                                                         
  (=) Operating income (loss) before items ($) 219 167 194 140 720 - (2) (1) 1 (2) - - 1 7 8 (1) - (1) - (2) 218 165 193 148 724
                                                         
Reconciliation of "Operating income (loss) before items" to "EBITDA before items"                                                        
    Operating income (loss) before items ($) 219 167 194 140 720 - (2) (1) 1 (2) - - 1 7 8 (1) - (1) - (2) 218 165 193 148 724
  (+) Depreciation and amortization ($) 92 94 91 91 368 1 1 1 1 4 - - 1 3 4 - - - - - 93 95 93 95 376
                                                         
  (=) EBITDA before items ($) 311 261 285 231 1,088 1 (1) - 2 2 - - 2 10 12 (1) - (1) - (2) 311 260 286 243 1,100
  (/) Sales ($) 1,269 1,261 1,246 1,177 4,953 217 190 197 177 781 - - 17 54 71 - - - - 1,486 1,451 1,460 1,408 5,805
  (=) EBITDA margin before items (%) 25% 21% 23% 20% 22% - - - 1% - - - 12% 19% 17% - - - - - 21% 18% 20% 17% 19%
                                                         
                                                       

"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

(1) On September 1, 2011, the Company acquired 100% of the shares of Attends Healthcare, Inc.

Domtar Corporation                
Supplemental Segmented Information                
(In millions of dollars, unless otherwise noted)                
                 
    2012   2011
    Q1   Q1 Q2 Q3 Q4 YTD
Pulp and Paper Segment                
  Sales ($) 1,191   1,269 1,261 1,246 1,177 4,953
    Intersegment sales - Pulp and Paper ($) (52)   (63) (48) (43) (39) (193)
  Operating income ($) 107   209 91 189 92 581
  Depreciation and amortization ($) 93   92 94 91 91 368
  Impairment and write-down of property, plant and equipment ($) 2   3 62 8 12 85
                 
  Papers                
  Papers Production ('000 ST) 870   899 890 875 871 3,535
  Papers Shipments ('000 ST) 870   913 901 889 831 3,534
    Communication Papers ('000 ST) 753   816 794 784 729 3,123
    Specialty and Packaging ('000 ST) 117   97 107 105 102 411
                 
  Pulp                  
  Pulp Shipments(a) ('000 ADMT) 389   375 361 358 403 1,497
    Hardwood Kraft Pulp (%) 15%   20% 19% 18% 19% 19%
    Softwood Kraft Pulp (%) 61%   55% 54% 57% 58% 57%
    Fluff Pulp (%) 24%   25% 27% 25% 23% 24%
                 
Distribution Segment                
  Sales ($) 189   217 190 197 177 781
  Operating income (loss) ($) (1)   3 (2) (1) - -
  Depreciation and amortization ($) 1   1 1 1 1 4
                 
Personal Care Segment                
  Sales ($) 70   - - 17 54 71
  Operating income ($) 8   - - - 7 7
  Depreciation and amortization ($) 3   - - 1 3 4
                 
                 
Average Exchange Rates $US / $CAN 1.001   0.986 0.968 0.980 1.023 0.989
  $CAN / $US 0.999   1.014 1.034 1.021 0.977 1.011

(a) Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.

Note: the term "ST" refers to a short ton and the term "ADMT" refers to an air dry metric ton.

  

 

 

SOURCE DOMTAR CORPORATION



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.