Cascades reports First quarter 2011 results in accordance with IFRS
KINGSEY FALLS, QC, May 12 /PRNewswire-FirstCall/ - Cascades Inc. (TSX: CAS), a leader in the recovery of recyclable materials and the manufacturing of green packaging and tissue paper products, announces its financial results for the three-month period ended March 31, 2011.
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Financial highlights
--------------------
- Financial results of 2011 and comparative figures of 2010 were prepared
using accounting policies within the framework of International
Financial Reporting Standards (IFRS).
- Improving sales compared to the first quarter of 2010.
- As expected, results reflect the unfavourable seasonality as well as
the significant and rapid inflation of input costs and the Canadian
dollar in the past 6 months.
- Net earnings per share excluding specific items of $(0.01) compared
to net earnings of $0.04 in the same period of last year. Including
specific items, net loss per share of $(0.08) compared to net earnings
of $0.01 in the corresponding period of last year.
- Operating income before depreciation and amortization (EBITDA)
excluding specific items of $37 million compared to $59 million in the
first quarter of 2010. Including the discontinued operations and our
share of results of associates and of joint ventures, EBITDA would
have been $57 million in Q1 2011.
Strategic initiatives
---------------------
- The conclusion of the divestiture of Dopaco, Cascades' paper cup and
carton converting business for the quick-service restaurant and
foodservice industries, for US$400 million was announced on May 2,
2011.
The results of these activities were reclassified as discontinued
operations in 2011 as well as in the comparative figures.
- Increased ownership of Reno De Medici.
- Start-up of a completely rebuilt tissue machine to produce Premium and
Ultra quality tissue papers with a lower environmental footprint.
- Divestiture of the Avot-Vallée, France, white-top linerboard mill.
- Announcement of the consolidation of corrugated box operations in New
England.
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Financial Summary
-----------------
(in millions of Canadian dollars, ----------------------------------
except amounts per share) Q1/2011 Q1/2010 Q4/2010
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Sales 774 759 783
Excluding specific items (1)
Operating income before depreciation
and amortization (OIBD or EBITDA) 37 59 72
Operating income 1 19 34
Net earnings 1 4 17
per common share $0.01 $0.04 $0.17
Cash flow from operations (adjusted) 15 43 41
As reported
Operating income before depreciation
and amortization (OIBD or EBITDA) (1) 30 59 45
Operating income (loss) (6) 19 7
Net earnings (loss) (8) 1 (12)
per common share $(0.08) $0.01 $(0.12)
Cash flow from operations (adjusted) (1) 15 40 41
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Note 1 - see the supplemental information on non-IFRS measures.
Commenting on the first quarter results, Mr. Alain Lemaire, President and Chief Executive Officer stated: "Our first quarter results, while expected given the rising cost of waste paper and the appreciation of the Canadian dollar, are not acceptable. As we have demonstrated in recent years, we can and will adjust quickly. Recently, we have taken significant steps to improve our financial position through the disposition of non core or underperforming assets and cost cutting programs throughout the Company. These initiatives will be stepped up as we continue in our efforts to equip Cascades to meet these challenges."
Results analysis for the three-month period ended March 31, 2011
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(compared to the previous year, reflecting the adoption of IFRS and
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discontinued operations)
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In comparison with the same period last year, sales rose by 2% to $774 million as of result of higher selling prices partly offset by the 6% appreciation of the Canadian dollar and the impact of the divestiture of one our containerboard mills.
The operating income, excluding specific items, amounted to $1 million compared to $19 million in Q1 2010. Improved selling prices were unfortunately offset by the rise of all main variable costs, namely recycled fibre, pulp, energy, chemical products and freight, and again, the appreciation of the Canadian dollar. On a segmented basis, although all groups benefited from better prices and healthy operating rates, each sector posted weaker profitability due the rapid and sizeable run-up in variable costs. When including specific items, the operating loss amounted to $6 million in comparison to an operating income of $19 million in the same period of last year.
In the first quarter of 2011, these specific items impacted our operating income and/or net earnings (before tax):
- $3 million in closure and restructuring costs (impact on operating
income and net earnings);
- a $2 million unrealized loss on financial instruments (impact on
operating income and net earnings);
- a $1 million impairment loss (impact on operating income and net
earnings);
- a $1 million loss on disposal and others (impact on operating income
and net earnings);
- a $5 million foreign exchange loss on long-term debt and financial
instruments (impact on net earnings);
- a $1 million gain included in discontinued operations (impact on net
earnings).
For further details, see the two following tables on IFRS and non-IFRS measures reconciliation.
Net earnings excluding specific items amounted to $1 million ($0.01 per share) in the first quarter of 2011 compared to net earnings of $4 million ($0.04 per share) for the same period of last year. Including specific items, the net loss amounted to $8 million ($0.08 per share) compared to net earnings of $1 million ($0.01 per share) for the same quarter in 2010. Financing and depreciation expenses were slightly lower while the recovery of income taxes and the share of results of associates and joint ventures were higher than in 2010.
As a result of lower profitability and the normal seasonal build-up in working capital, net debt increased to $1,445 million. This however does not take into account the impact of the divestiture of Dopaco, which occurred on May 2, 2011, for a net proceed of US$337 million.
Results analysis for the three-month period ended March 31, 2011
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(compared to the previous quarter, reflecting the adoption of IFRS and
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discontinued operations)
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In comparison to the previous quarter, sales decreased mostly due the appreciation of the Canadian dollar and the impact of the divestiture of one our containerboard mills. Operating income and net earnings mainly declined as a result of the rise of input costs and the Canadian dollar. In the previous quarter, our operating income was also positively impacted by a $2 million change to the post-retirement benefits at one of our units and a $4 million positive property tax credit adjustment from prior years.
Near-term outlook
-----------------
Mr. Alain Lemaire, President and Chief Executive Officer added: "Looking ahead to the second quarter, demand should continue and even slightly improve along with seasonality. In addition, selling price hikes are being implemented or announced for the months ahead in our boxboard, specialty products and tissue paper segments. Elevated input costs and the strong Canadian dollar should however continue to put pressure on our profitability.
With regards to the second half of the year, we anticipate an upturn in results in large measure due to restructuring initiatives, improved operating rates and efficiency, as well as price increases throughout most of our sectors."
Moreover, as recently disclosed, our ownership in Reno De Medici S.p.A. ("RDM") now stands at 41%. In addition to our stake, we also have a call option over RDM shares by virtue of which we are entitled to acquire up to a maximum 9.07% of its current corporate capital. Considering these facts, starting in the second quarter of 2011, our consolidated figures will include those of RDM at 100% and net results will be reported net of non-controlling interests.
Dividend on common shares and normal course issuer bid
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The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid June 9, 2011 to shareholders of record at the close of business on May 26, 2011. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada). In the first quarter of 2011, Cascades purchased for cancellation 173,863 shares at an average price of $7.20 representing an aggregate amount of approximately $1.3 million.
Transition to International Financial Reporting Standards (IFRS)
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All financial information, including comparative figures pertaining to Cascades' 2010 results, has been prepared in accordance with International Financial Reporting Standards (IFRS) contained within Part 1 of the Canadian Institute of Chartered Accountants Handbook. In previous periods, the Company prepared its Consolidated financial statements and interim consolidated financial statements in accordance with Canadian generally accepted accounting principles (GAAP) in effect prior to January 1, 2011 (previous GAAP). Comparative figures presented pertaining to Cascades' 2010 results have been restated to be in accordance with IFRS. A reconciliation of certain comparative figures from previous GAAP to IFRS is provided in the table below and the First Quarter results investor presentation. For further details, please refer to the investor presentation on the impact of adoption of IFRS and the 2010 annual report. The two presentations are available at www.cascades.com/investors.
The table below provides the reconciliation of the 2010 sales, the operating income and the operating income before depreciation and amortization, excluding specific items, reported under the previous GAAP and the IFRS:
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Operating
income before
depreciation
and amortization
Operating income, (EBITDA),
excluding excluding
Sales (1) spécific items specific items
(in millions of -----------------------------------------------------
Canadian dollars) Q1/2010 Q4/2010 Q1/2010 Q4/2010 Q1/2010 Q4/2010
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As reported in 2010
(previous Can GAAP) 942 991 23 45 78 98
Less: IFRS
adjustments:
Joint ventures (82) (98) (4) (6) (8) (10)
Depreciation and
amortization - - 5 4
Others - - 2 1 2 -
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Including IFRS
adjustment 860 893 26 44 72 88
Less: discontinued
operations (101) (110) (7) (10) (13) (16)
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As reported (IFRS) 759 783 19 34 59 72
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Note 1 - Sales of discontinued operations and joint ventures are net of
intercompany
The following table provides the 2011 sales and operating income before depreciation and amortization, excluding specific items, including those of the discontinued operations and our joint ventures:
--------------------------
Operating
income
before
depreciation
and
amortization
(EBITDA),
excluding
specific
Sales (1) items
--------------------------
(in millions of Canadian dollars) Q1/2011 Q1/2011
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As reported (IFRS) 774 37
Add back:
Discontinued operations 95 11
Joint ventures 99 9
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Including discontinued operations and
joint ventures 968 57
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Note 1 - Sales of discontinued operations and joint ventures are net of
intercompany
Supplemental information on non-IFRS measures
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Operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations are not measures of performance under IFRS. The Company includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations because they are measures used by management to assess the operating and financial performance of the Company's operating segments. Additionally, the Company believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations do not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with IFRS, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with IFRS excluding the change in working capital components.
Operating income before depreciation and amortization excluding specific items, earnings before interests, taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items, net earnings per common share excluding specific items and cash flow from operations excluding specific items are non-IFRS measures. The Company believes that it is useful for investors to be aware of specific items that have adversely or positively affected its GAAP measures, and that the above mentioned non-IFRS measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Company's measures excluding specific items have no standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.
Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, debt restructuring charges, gains or losses on sale of business unit, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature.
Net earnings (loss), which is a performance measure defined by IFRS is reconciled below to operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interests, taxes, depreciation and amortization excluding specific items:
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(in millions of Canadian dollars) Q1/2011 Q1/2010 Q4/2010
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Net earnings (loss) (8) 1 (12)
Net earnings from discontinued
operations (6) (6) (1)
Non-controlling interest - - -
Share of results of associates and
joint ventures (8) (3) (4)
Recovery of income taxes (14) (5) (8)
Foreign exchange loss on long-term
debt and financial instruments 5 1 5
Loss on long-term debt refinancing - 3 -
Financing expense 25 28 27
-----------------------------------
Operating income (loss) (6) 19 7
Specific items :
Loss on disposal and others 1 - -
Impairment loss 1 - 28
Closure and restructuring costs 3 - -
Unrealized loss (gain) on financial
instruments 2 - (1)
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7 - 27
-----------------------------------
Operating income - excluding
specific items 1 19 34
Depreciation and amortization 36 40 38
-----------------------------------
Operating income before depreciation
and amortization (OIBD or EBITDA) -
excluding specific items 37 59 72
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The following table reconciles net earnings (loss) and net earnings (loss) per share to net earnings (loss) excluding specific items and net earnings (loss) per share excluding specific items:
(in millions of
Canadian dollars, -------------------------- --------------------------
except amounts per Net earnings (loss)
share) Net earnings (loss) per share 1
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Q1/2011 Q1/2010 Q4/2010 Q1/2011 Q1/2010 Q4/2010
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As per IFRS (8) 1 (12) $(0.08) $0.01 $(0.12)
Specific items :
Loss on disposal
and others 1 - - $0.01 $ - $ -
Impairment loss 1 - 28 $0.01 $ - $0.19
Closure and restruc-
turing costs 3 - - $0.02 $ - $ -
Unrealized loss (gain)
on financial
instruments 2 - (1) $0.02 $ - $(0.01)
Loss on long-term debt
refinancing - 3 - $ - $0.02 $ -
Foreign exchange loss
on long-term debt
and financial
instruments 5 1 5 $0.04 $0.01 $0.04
Share of results of
associates and joint
ventures - - 1 $ - $ - $0.01
Included in
discontinued
operations (1) - 8 $(0.01) $ - $0.06
Tax effect on specific
items (2) (1) (12)
-------------------------- --------------------------
9 3 29 $0.09 $0.03 $0.29
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Excluding specific
items 1 4 17 $0.01 $0.04 $0.17
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Note 1 - specific amounts per share are calculated on an after-tax basis.
The following table reconciles cash flow provided by (used from) operating activities to cash flow (adjusted) from operations excluding specific items:
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Cash flow from operations
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(in millions of Canadian dollars) Q1/2011 Q1/2010 Q4/2010
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Cash flow provided by (used from)
operating activities (12) 25 87
Changes in non-cash working capital
components 27 15 (46)
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Cash flow (adjusted) from operations 15 40 41
Specific items, net of current
income taxes :
Loss on long-term debt refinancing - 3 -
Closure and restructuring costs - - -
-----------------------------------
Excluding specific items 15 43 41
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Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Company employs more than 11,000 employees, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience in recycling and its continued efforts in research and development are strengths that enable Cascades to create new products for its customers. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.
Consolidated Balance Sheets
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March December January
(in millions of Canadian dollars) 31, 31, 1,
(unaudited) 2011 2010 2010
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Assets
Current assets
Cash and cash equivalents 10 6 8
Accounts receivable 466 490 456
Current income tax assets 27 21 13
Inventories 409 476 467
Financial assets 12 12 14
Group of assets held for sale 280 - -
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1,204 1,005 958
Long-term assets
Investments in associates and
joint ventures 314 296 274
Property, plant and equipment 1,374 1,553 1,637
Intangible assets 111 124 134
Financial assets 14 14 19
Other assets 64 50 50
Deferred income tax assets 79 82 74
Goodwill 292 313 315
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3,452 3,437 3,461
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Liabilities and Shareholders'
Equity
Current liabilities
Bank loans and advances 45 42 50
Accounts payable and accrued
liabilities 393 440 395
Current income tax liabilities 13 2 1
Provisions for contingencies
and charges 17 23 24
Current portion of financial
liabilities and other liabilities 13 14 7
Current portion of long-term debt 10 7 6
Liabilities directly associated
with group of assets held for sale 77 - -
Revolving credit facility, renewed
in 2011 - 394 -
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568 922 483
Long-term liabilities
Long-term debt 1,400 960 1,423
Provisions for contingencies
and charges 38 37 31
Financial liabilities 89 83 54
Other liabilities 179 196 166
Deferred income tax liabilities 113 167 192
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2,387 2,365 2,349
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Equity attributable to Shareholders
Capital stock 495 496 499
Contributed surplus 13 14 14
Retained earnings 564 576 575
Accumulated other comprehensive
income (17) (37) 3
Accumulated other comprehensive income
related to discontinued operations (13) - -
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1,042 1,049 1,091
Non-controlling interest 23 23 21
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Total equity 1,065 1,072 1,112
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3,452 3,437 3,461
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The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
Consolidated Statements of Earnings
----------------------------------
For the 3-month periods ended March 31,
(in millions of Canadian dollars,
except per share amounts and number
of shares)(unaudited) 2011 2010
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Sales 774 759
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Cost of sales and expenses
Cost of sales (excluding depreciation
and amortization) 661 614
Depreciation and amortization 36 40
Selling and administrative expenses 77 81
Losses on disposal and other 1 -
Net impairment loss and other
restructuring costs 4 -
Foreign exchange loss - 5
Loss on financial instruments 1 -
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780 740
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Operating income (loss) (6) 19
Financing expense 25 28
Loss on refinancing of long-term debt - 3
Foreign exchange loss on long-term debt 5 1
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(36) (13)
Recovery of income taxes (14) (5)
Share of results of associates and
joint ventures (8) (3)
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Net loss from continuing operations
including non-controlling interest
for the period (14) (5)
Net earnings from discontinued
operations for the period 6 6
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Net earnings (loss) including non-
controlling interest for the period (8) 1
Less: Non-controlling interest - -
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Net earnings (loss) attributable to
Shareholders for the period (8) 1
Net earnings (loss) from continuing
operations per common share
Basic ($0.15) ($0.05)
Diluted ($0.15) ($0.05)
Net earnings (loss) per common share
Basic ($0.08) $0.01
Diluted ($0.08) $0.01
Weighted average basic number of
common shares outstanding 96,606,421 97,086.643
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The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
Consolidated Statements of Comprehensive Income (Loss)
------------------------
For the 3-month periods ended March 31,
(in millions of Canadian dollars) (unaudited) 2011 2010
-------------------------------------------------------------------------
Net earnings (loss) including non-controlling
interest for the period (8) 1
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Other comprehensive income (loss)
Translation adjustments
Change in foreign currency translation
of foreign subsidiaries (11) (33)
Change in foreign currency translation
related to net investment hedging
activities 15 16
Cash flow hedges
Change in fair value of foreign exchange
forward contracts (1) 3
Change in fair value of interest rate
swap agreements 1 (1)
Change in fair value of commodity
derivative financial instruments 2 (6)
Actuarial loss on post-employment
benefit obligations - -
Available-for-sale financial assets - 1
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6 (20)
Comprehensive income (loss) including non-
controlling interest for the period (1) (19)
Less: Comprehensive income attributable to
non-controlling interest for the period - -
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Comprehensive income attributable to Shareholders (2) (19)
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Consolidated Statements of Equity
-----------------------------------------------------------
For the 3-month period ended March 31, 2011
-----------------------------------------------------------
Accu- Total
mulated equity
other attribu-
(in millions Contri- Re- compre- table Non-
of Canadian buted tained hensive to the control-
dollars) Capital sur- ear- income Share- ling Total
(unaudited) stock plus nings (loss) holders interest equity
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Balance-
Beginning
of period 496 14 576 (37) 1,049 23 1,072
Comprehensive
income:
Net loss for
the period - - (8) - (8) - (8)
Other
compre-
hensive
income - - - 7 7 - 7
Dividends - - (4) - (4) - (4)
Stock
options - (1) - - (1) - (1)
Redemption
of common
shares (1) - - - (1) - (1)
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Balance-End of
period 495 13 564 (30) 1,042 23 1,065
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For the 3-month period ended March 31, 2010
-----------------------------------------------------------
Accu- Total
mulated equity
other attribu-
(in millions Contri- Re- compre- table Non-
of Canadian buted tained hensive to the control-
dollars) Capital sur- ear- income Share- ling Total
(unaudited) stock plus nings (loss) holders interest equity
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Balance-
Beginning
of period 499 14 575 3 1,091 21 1,112
Comprehensive
income:
Net
earnings
for the
period - - 1 - 1 - 1
Other
compre-
hensive
income
(loss) - - - (19) (19) - (19)
Dividends - - (4) - (4) - (4)
Stock
options - - - - - - -
Redemption
of common
shares (1) - - - (1) - (1)
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Balance-End
of period 498 14 572 (16) 1,068 21 1,089
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Consolidated Statements of Cash Flows
----------------------------------
For the 3-month periods ended March 31,
(in millions of Canadian dollars)
(unaudited) 2011 2010
-------------------------------------------------------------------------
Operating activities from continuing
operations
Net earnings (loss) attributable to
Shareholders for the period (8) 1
Net earnings from discontinued
operations for the period (6) (6)
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Net loss from continuing operations (14) (5)
Adjustments for
Interest expense 25 28
Depreciation and amortization 36 40
Losses on disposal and other 1 -
Net impairment loss and other
restructuring costs 4 -
Unrealized loss on financial
instruments 2 -
Foreign exchange loss on long-term
debt and financial instruments 5 1
Income tax expense 2 3
Deferred income taxes (16) (8)
Share of results of associates
and joint ventures (8) (3)
Non-controlling interest - -
Interest paid (17) (10)
Income tax paid (3) (4)
Others (2) (2)
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15 40
Changes in non-cash working
capital components (27) (15)
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(12) 25
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Investing activities from
continuing operations
Purchases of property, plant
and equipment (35) (30)
Increase in other assets and investment
in associates and joint ventures (10) (3)
Business acquisitions, net of cash
acquired - (2)
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(45) (35)
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Financing activities from continuing
operations
Bank loans and advances 4 (3)
Change in revolving credit facilities 51 185
Purchase of senior notes - (161)
Increase in other long-term debt - 1
Payments of other long-term debt (2) (2)
Redemption of common shares (1) (2)
Dividend paid to Company's shareholders (4) (4)
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48 14
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Change in cash and cash equivalents
during the period from continuing
operations (9) 4
Change in cash and cash equivalents
from discontinued operations, including
proceeds on disposal during the period 13 3
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Net change in cash and cash equivalents
during the period 4 7
Cash and cash equivalents-Beginning
of period 6 8
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Cash and cash equivalents-End of period 10 15
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Segmented Information
---------------------------
Sales
---------------------------
For the 3-month periods
ended March 31,
---------------------------
(in millions of Canadian dollars) (unaudited) 2011 2010
-------------------------------------------------------------------------
Packaging products
Boxboard
Manufacturing 126 115
Converting 144 151
Intersegment sales (11) (9)
Discontinued operations, net of
intersegment sales (105) (111)
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153 146
Containerboard
Manufacturing 139 134
Converting 195 194
Intersegment sales (80) (73)
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254 255
Specialty products
Industrial packaging 30 27
Consumer packaging 18 17
Specialty papers 73 78
Recovery and recycling 83 72
Intersegment sales (2) (2)
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202 192
Intersegment sales (28) (26)
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581 567
Tissue papers
Manufacturing and converting 199 197
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Intersegment sales and others (6) (5)
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Total 774 759
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Operating income (loss)
before depreciation and
amortization
---------------------------
For the 3-month periods
ended March 31,
---------------------------
(in millions of Canadian dollars) (unaudited) 2011 2010
-------------------------------------------------------------------------
Packaging products
Boxboard
Manufacturing 3 5
Converting 12 15
Others - -
Discontinued operations (8) (13)
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4 7
Containerboard
Manufacturing 6 10
Converting 10 21
Others (3) 1
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13 32
Specialty products
Industrial packaging 2 4
Consumer packaging - 1
Specialty papers - 5
Recovery and recycling 4 6
Others 1 -
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7 16
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24 55
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Tissue papers
Manufacturing and converting 10 19
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Corporate (4) (15)
-------------------------------------------------------------------------
Operating income before depreciation
and amortization 30 59
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Depreciation and amortization
Boxboard (7) (9)
Containerboard (15) (19)
Specialty products (6) (6)
Tissue papers (10) (11)
Corporate and eliminations (2) (1)
Discontinued operations 4 6
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(36) (40)
Operating income (6) 19
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---------------------------
Purchases of
property, plant
and equipment
---------------------------
For the 3-month periods
ended March 31,
---------------------------
(in millions of Canadian dollars) (unaudited) 2011 2010
-------------------------------------------------------------------------
Packaging products
Boxboard
Manufacturing 2 2
Converting 1 3
Discontinued operations (1) (3)
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2 2
Containerboard
Manufacturing 3 5
Converting 4 4
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7 9
Specialty products
Industrial packaging - -
Consumer packaging - 1
Specialty papers 4 1
Recovery and recycling 2 1
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6 3
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15 14
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Tissue papers
Manufacturing and converting 5 8
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Corporate 2 4
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Total purchases 22 26
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Disposal of property, plant and equipment - (2)
-------------------------------------------------------------------------
22 24
Purchases of property, plant and equipment
included in accounts payable
Beginning of period 18 13
End of period (5) (7)
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Total investing activities 35 30
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SOURCE CASCADES INC.
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