KP Tissue Inc. (KPT) (TSX: KPT) reports the Q4 2021 and full year
2021 financial and operational results of KPT and Kruger Products
L.P. (KPLP). Kruger Products is Canada's leading manufacturer of
quality tissue products for the Consumer market (Cashmere, Purex,
SpongeTowels, Scotties, White Swan and Bonterra) and the
Away-From-Home (AFH) market, and continues to expand in the U.S.
Consumer market with the White Cloud® brand and premium private
label products. KPT currently holds a 14.4% interest in KPLP.
KPLP Q4 2021 Business and Financial
Highlights
- Revenue was $424.1 million in Q4
2021 compared to $385.0 million in Q4 2020, an increase of $39.1
million or 10.2%.
- Adjusted EBITDA1 was $38.3 million
in Q4 2021, compared to $36.2 million in Q4 2020, an increase of
5.8%.
- Net income was $42.3 million in Q4
2021, compared to a loss of $28.5 million in Q4 2020, an increase
of $70.8 million.
- Announced additional investment of
$111.5 million in the Sherbrooke Expansion Project, for a total
investment of $351.5 million.
- Declared a quarterly dividend of
$0.18 per share to be paid on April 15, 2022.
KPLP Full Year 2021 Financial
Highlights
- Revenue was $1,465.2 million in
2021 compared to $1,516.0 million in 2020, a decrease of $50.8
million or 3.4%.
- Adjusted EBITDA1 was $153.4 million
in 2021, down from $197.8 million in 2020, a decrease of
22.4%.
- Net income was $42.0 million in
2021, up from $27.3 million in 2020, an increase of $14.7
million.
“We are pleased by our performance in the face
of volatile market conditions and unprecedented headwinds in 2021
and contrasted against an extraordinary market environment in 2020.
The first half of 2021 was marked by destocking challenges due to
the COVID-19 pandemic, while mounting supply chain and inflationary
pressures affected both our Consumer and Away-From-Home segments in
the latter part of the year. We did regain sales momentum in the
second half of 2021 and closed the fourth quarter on a high note
with more than 10% revenue growth and improved adjusted EBITDA,”
stated KP Tissue’s Chief Executive Officer, Dino Bianco.
“Against this backdrop, we continued to invest
in the future through market-driven innovations. The successful
launch of SpongeTowels Ultra ProTM in 2021 delivered significant
share gains in the paper towel category. This year we have
introduced a new sustainably focused brand, BonterraTM, to offer
consumers a more environmentally conscious option with unique
features addressing packaging, recycled fibre, a neutral carbon
footprint and partnerships with 4Ocean and One Tree Planted. In
addition, we have upgraded Cashmere and Purex UltraLuxe to offer
our softest and most luxurious bathroom tissue ever.”
“In terms of network modernization, Year 1 of
TAD Sherbrooke proved to be a major success with a ramp-up curve
well above our expectations. We also announced the Sherbrooke
expansion project early into 2021 and followed up with an
incremental investment at the end of the year to double production
capacity to over 60,000 metric tonnes by 2024. The project’s total
value of approximately $350 million will effectively create a
tissue hub in Canada using both TAD and conventional
technologies.”
“Looking ahead to 2022, we intend to leverage
our ongoing investments, innovations and share gains to drive
revenue growth, while pricing the business and managing costs to
offset inflation,” Mr. Bianco concluded.
1 Adjusted EBITDA is a non-GAAP financial
measure. Refer to the Non-GAAP Financial Measures section of this
news release for more information on these measures
Outlook for Q1 2022We
anticipate Q1 sales momentum to continue in both AFH and Consumer
as customer and consumer behaviour returns to more pre-COVID
levels. However, cost inflation across the supply chain is expected
to continue impacting results in the near-term, therefore Q1 2022
Adjusted EBITDA is expected to be in the range of $30-$35
million.
KPLP Q4 2021 Financial
Results
Revenue was $424.1 million in Q4 2021 compared
to $385.0 million in Q4 2020, an increase of $39.1 million or
10.2%. The increase in revenue was due to a selling price increase
in Consumer Canada and higher sales volume in the Consumer segment
compared to the year ago quarter, partially offset by the
unfavourable impact of foreign exchange fluctuations on U.S. dollar
sales.
Cost of sales was $376.0 million in Q4 2021
compared to $332.2 million in Q4 2020, an increase of $43.8 million
or 13.2%. Manufacturing costs increased primarily due to higher
sales volumes, increased pulp costs, and the unfavourable impact of
labour shortages in Memphis manufacturing, along with higher
depreciation expense, overhead absorption resulting from reduced
inventory levels during the quarter, and inflation. These increases
were partially offset by the favourable impact of more in-house
production in AFH and favourable foreign exchange fluctuations on
U.S. dollar costs. Freight costs and warehousing expenses also
increased compared to Q4 2020. As a percentage of revenue, cost of
sales was 88.7% in Q4 2021 compared to 86.3% in Q4 2020.
Selling, general and administrative (SG&A)
expenses were $31.7 million in Q4 2021 compared to $36.7 million in
Q4 2020, a decrease of $5.0 million or 13.6%. The decrease was
primarily due to lower advertising and promotion expenses, a lower
foreign exchange loss in Q4 2021 compared to the year ago quarter
and lower Information Technology spending in the fourth quarter. As
a percentage of revenue, SG&A expenses were 7.5% in Q4 2021
compared to 9.5% in Q4 2020.
Adjusted EBITDA was $38.3 million in Q4 2021
compared to $36.2 million in Q4 2020, an increase of $2.1 million
or 5.8%. The increase was primarily due to higher sales volume and
the Consumer selling price increase in Canada, lower SG&A
expenses, and the net favourable impact of foreign exchange
fluctuations, partially offset by the unfavourable impact of sales
mix, higher pulp prices and other inflation, labour shortages in
Memphis manufacturing and higher freight rates and warehousing
costs.
Net income was $42.3 million in Q4 2021 compared
to a loss of $28.5 million in Q4 2020, an increase of $70.8
million. The increase was primarily due to higher income tax
recovery, lower other expense, an impairment charge in Fiscal 2020
and higher Adjusted EBITDA as discussed above, partially offset by
higher interest expense and other finance costs and higher
depreciation and amortization.
KPLP Q4
2021 LiquidityTotal liquidity, representing cash and
availability under the revolving credit agreements, was $263.8
million as of December 31, 2021. In addition, $86.5 million of cash
was held by KPLP for the TAD Sherbrooke and Sherbrooke Expansion
Projects.
KPLP 2021 Financial
ResultsRevenue was $1,465.2 million in Fiscal 2021
compared to $1,516.0 million in Fiscal 2020, a decrease of $50.8
million or 3.4%. The decrease in revenue was primarily due to a
significant sales volume decrease in Canada resulting from the
following: the comparison to high COVID-19 buying activity during
the first half of 2020; the de-stocking of tissue inventories by
both retailers and consumers in the Consumer segment during the
first half of 2021; the unfavourable impact of COVID-19 related
restrictions in the AFH segment that continued through the first
half of 2021; and the unfavourable impact of foreign exchange
fluctuations on U.S. dollar sales. The decrease was partially
offset by a Consumer selling price increase in Canada in the second
half of 2021 and an AFH selling price increase.
Adjusted EBITDA was $153.4 million in Fiscal
2021 compared to $197.8 million in Fiscal 2020, a decrease of $44.4
million or 22.4%. The decrease was primarily due to the impact of
lower sales volumes net of overhead absorption, along with the
unfavourable impact of higher pulp prices and higher freight rates
and warehousing costs, partially offset by a selling price increase
in Consumer Canada, lower SG&A expenses, and the favourable
impact of foreign exchange fluctuations.
Net income was $42.0 million in Fiscal 2021
compared to $27.3 million in Fiscal 2020, an increase of $14.7
million. The increase was primarily due to higher income tax
recovery, lower other expense and an impairment charge in Fiscal
2020, partially offset by lower Adjusted EBITDA as discussed above,
higher interest expense and other finance costs and higher
depreciation and amortization
KPT Q4 2021 Financial
ResultsKPT had a net income of $3.4 million in Q4 2021.
Included in the net income was $6.1 million representing KPT’s
share of KPLP’s net income and a dilution gain of $0.1 million,
depreciation expense of $1.3 million related to adjustments to
carrying amounts on acquisition and an income tax expense of $1.5
million.
KPT 2021 Financial ResultsKPT
had a net income of $1.2 million in 2021. Included in net income
was $6.1 million representing KPT’s share of KPLP’s net income, a
dilution gain of $0.3 million, depreciation expense of $5.3 million
related to adjustments to carrying amounts on acquisition and
income tax recovery of $0.1 million.
Dividends on Common
Shares The
Board of Directors of KPT declared a quarterly dividend of $0.18
per share to be paid on April 15, 2022 to shareholders of record at
the close of business on April 1, 2022.
Additional InformationFor
additional information please refer to Management’s Discussion and
Analysis (MD&A) of KPT and KPLP for the fourth quarter and
fiscal year ended December 31, 2021 available on SEDAR at
www.sedar.com or our website at www.kptissueinc.com.
Fourth Quarter Results Conference Call
InformationKPT will hold its fourth quarter conference
call on Thursday, March 10, 2022 at 8:30 a.m. Eastern Time.
Via telephone: 1-800-599-5188 or
647-365-5897
Via the internet at: www.kptissueinc.com
Presentation material referenced during the
conference call will be available at www.kptissueinc.com.
A rebroadcast of the conference call will be
available until midnight, March 17, 2022 by dialing 1-800-770-2030
or 647-362-9199 and entering passcode 9884406.
The replay of the webcast will remain available
on the website until midnight, March 17, 2022.
About KP Tissue Inc. (KPT)KPT
was created to acquire, and its business is limited to holding, a
limited partnership interest in KPLP, which is accounted for as an
investment on the equity basis. KPT currently holds a 14.4%
interest in KPLP. For more information visit
www.kptissueinc.com.
About Kruger Products L.P.
(KPLP)KPLP is Canada's leading manufacturer of quality
tissue products for household, industrial and commercial use. KPLP
serves the Canadian consumer market with such well-known brands as
Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and
Bonterra™. In the U.S., KPLP manufactures the White Cloud® brand,
as well as many private label products. The Away-From-Home division
manufactures and distributes high-quality, cost-effective product
solutions to a wide range of commercial and public entities. KPLP
has approximately 2,700 employees and operates nine FSC®
COC-certified (FSC® C-104904) production facilities in North
America. For more information visit www.krugerproducts.ca.
Non-GAAP Financial MeasuresThis
press release uses certain non-GAAP financial measures which KPLP
believes provide useful information to management of KPLP and the
readers of the financial information in measuring the financial
performance and financial condition of KPLP. These measures do not
have a standardized meaning prescribed by GAAP and therefore may
not be comparable to similarly titled measures presented by other
companies. An example of such a measure is Adjusted EBITDA.
Adjusted EBITDA is not a measurement of operating performance
computed in accordance with GAAP and should not be considered
as a substitute for operating income, net income or cash flows from
operating activities computed in accordance with GAAP. “Adjusted
EBITDA” is calculated by KPLP as net income (loss) before (i)
interest expense, (ii) income taxes, (iii) depreciation, (iv)
amortization, (v) impairment (gain on sale) of non-financial
assets, (vi) loss (gain) on disposal of property, plant and
equipment, (vii) foreign exchange loss (gain), (viii) costs related
to restructuring activities, (ix) changes in amortized cost of
Partnership units liability, (x) change in fair value of
derivatives, (xi) consulting costs related to operational
transformation initiatives, (xii) corporate development related
costs and (xiii) loss (gain) on sale of shares. A reconciliation of
Adjusted EBITDA to the relevant reported results can be found in
the Segment and Geographic Results table of this news release.
COVID-19COVID-19 has resulted
in local governments enacting emergency measures to combat the
spread of the virus, with significant monetary and fiscal
interventions designed to stabilize economic conditions. Our
priorities during the COVID-19 pandemic continue to be to protect
the health and safety of our employees, while increasing the
availability of our products, which are essential to consumers each
and every day. It is difficult to estimate the length and potential
severity of the changed behaviours across our business segments or
reliably quantify the impact this pandemic could have on KPLP in
future periods.
Forward-Looking
StatementsCertain statements in this press release about
KPT’s and KPLP's current and future plans, expectations and
intentions, results, levels of activity, performance, goals or
achievements or any other future events or developments constitute
forward-looking statements. Forward-looking statements in this
press release include, but are not limited to, statements regarding
the projected capacity of the TAD Sherbrooke Project and the
Sherbrooke Expansion Project, expected revenue growth and KPLP’s
future business strategy. The words "may", "will", "would",
"should", "could", "expects", "plans", "intends", "trends",
"indications", "anticipates", "believes", "estimates", "predicts",
"likely" or "potential" or the negative or other variations of
these words or other comparable words or phrases, are intended to
identify forward-looking statements. The forward-looking statements
are based on certain key expectations and assumptions made by KPT
or KPLP. Although KPT and KPLP believe that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking statements since no assurance can be given that
such expectations and assumptions will prove to be correct.
The outlook provided in respect of Adjusted
EBITDA for Q1 2022 is forward-looking information and is subject to
the risk and uncertainties referred to below. The purpose of the
outlook is to provide the reader with an indication of management’s
expectations, at the date of this press release, regarding KPLP’s
future financial performance. Readers are cautioned that this
information may not be appropriate for other purposes.
Many factors could cause KPLP’s actual results,
level of activity, performance or achievements or future events or
developments (which could in turn affect the economic benefits
derived from KPT’s economic interest in KPLP), to differ materially
from those expressed or implied by the forward-looking statements,
including, without limitation, the following factors, which are
discussed in greater detail in the “Risk Factors – Risks Related to
KPLP’s Business” section of the KPT Annual Information Form dated
March 9, 2022 available on SEDAR at www.sedar.com: Kruger Inc.’s
influence over KPLP; KPLP’s reliance on Kruger Inc.; consequences
of an event of insolvency relating to Kruger Inc.; risks associated
with the TAD Sherbrooke Project; risks associated with the
Sherbrooke Expansion Project; operational risks; significant
increases in input costs; reduction in supply of fibre; increased
pricing pressure and intense competition; KPLP’s inability to
innovate effectively; adverse economic conditions; dependence on
key retail trade customers; damage to the reputation of KPLP or
KPLP’s brands; KPLP’s sales being less than anticipated; KPLP’s
failure to implement its business and operating strategies; KPLP’s
obligation to make regular capital expenditures; KPLP’s entering
into unsuccessful acquisitions; KPLP’s dependence on key personnel;
KPLP’s inability to retain its existing customers or obtain new
customers; KPLP’s loss of key suppliers; KPLP’s failure to
adequately protect its intellectual property rights; KPLP’s
reliance on third party intellectual property licenses; adverse
litigation and other claims affecting KPLP; material expenditures
due to comprehensive environmental regulation affecting KPLP’s cash
flow; KPLP’s pension obligations are significant and can be
materially higher than predicted if KPLP Management’s underlying
assumptions are incorrect; labour disputes adversely affecting
KPLP’s cost structure and KPLP’s ability to run its plants;
exchange rate and U.S. competitors; KPLP’s inability to service all
of its indebtedness; exposure to potential consumer product
liability; covenant compliance; interest rate and refinancing risk;
and risks relating to information technology; cyber-security;
insurance; internal controls; trade; and risks related to
COVID-19.
Readers should not place undue reliance on
forward-looking statements made herein. The forward-looking
information contained herein is expressly qualified in its entirety
by this cautionary statement. The forward-looking information
contained herein is made as of the date of press release and KPT
undertakes no obligation to publicly update such forward-looking
information to reflect new information, subsequent or otherwise,
unless required by applicable securities laws.
INFORMATION:
Francois ParoyanGeneral Counsel and Corporate
SecretaryKP Tissue Inc.Tel.:
905.812.6936francois.paroyan@krugerproducts.ca
INVESTORS:
Mike BaldesarraDirector of Investor RelationsKP
Tissue Inc. Tel.: 905.812.6962IR@KPTissueinc.com
|
Kruger Products L.P. |
Consolidated Statement of Financial Position |
(thousands of Canadian dollars) |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
$ |
|
|
$ |
|
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash, cash equivalents and restricted cash |
151,025 |
|
|
128,739 |
|
Trade and other receivables |
88,802 |
|
|
88,041 |
|
Receivables from related parties |
271 |
|
|
13 |
|
Advances to partners |
13,752 |
|
|
5,647 |
|
Inventories |
251,071 |
|
|
215,934 |
|
Income tax recoverable |
1,171 |
|
|
358 |
|
Prepaid expenses |
5,455 |
|
|
8,315 |
|
|
511,547 |
|
|
447,047 |
|
Non-current
assets |
|
|
|
|
|
Property, plant and equipment |
1,224,698 |
|
|
1,194,191 |
|
Right-of-use assets |
91,626 |
|
|
107,633 |
|
Other long-term assets |
37,456 |
|
|
10 |
|
Goodwill |
152,021 |
|
|
152,021 |
|
Intangible assets |
29,222 |
|
|
26,205 |
|
Deferred income taxes |
75,742 |
|
|
24,217 |
|
Total
assets |
2,122,312 |
|
|
1,951,324 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other payables |
258,626 |
|
|
332,072 |
|
Payables to related parties |
11,485 |
|
|
9,097 |
|
Income tax payable |
300 |
|
|
554 |
|
Distributions payable |
12,300 |
|
|
11,919 |
|
Current portion of provisions |
3,705 |
|
|
4,913 |
|
Current portion of long-term debt |
48,550 |
|
|
9,495 |
|
Current portion of lease liabilities |
30,170 |
|
|
25,341 |
|
|
365,136 |
|
|
393,391 |
|
Non-current
liabilities |
|
|
|
|
|
Long-term debt |
920,331 |
|
|
743,978 |
|
Long-term lease liabilities |
82,354 |
|
|
105,634 |
|
Long-term payable to related party |
42,454 |
|
|
- |
|
Long-term provisions |
6,929 |
|
|
9,549 |
|
Other long-term liabilities |
- |
|
|
575 |
|
Pensions |
58,481 |
|
|
161,333 |
|
Post-retirement benefits |
57,331 |
|
|
63,038 |
|
Liabilities to non-unitholders |
1,533,016 |
|
|
1,477,498 |
|
Current portion of Partnership units liability |
14,064 |
|
|
31,244 |
|
Long-term portion of Partnership units liability |
159,137 |
|
|
154,180 |
|
Total Partnership units liability |
173,201 |
|
|
185,424 |
|
Total
liabilities |
1,706,217 |
|
|
1,662,922 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Partnership units |
461,536 |
|
|
439,571 |
|
Deficit |
(117,123 |
) |
|
(224,503 |
) |
Accumulated other comprehensive income |
71,682 |
|
|
73,334 |
|
Total
equity |
416,095 |
|
|
288,402 |
|
Total equity and
liabilities |
2,122,312 |
|
|
1,951,324 |
|
|
|
|
|
|
|
Kruger Products L.P. |
Consolidated Statement of Comprehensive Income
(Loss) |
(thousands
of Canadian dollars) |
|
|
|
3-month period ended
December 31, 2021 |
|
|
3-month period ended
December 31, 2020 |
|
|
12-month period ended
December 31, 2021 |
|
|
12-month period ended
December 31, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
424,029 |
|
|
384,971 |
|
|
1,465,161 |
|
|
1,515,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
375,966 |
|
|
332,193 |
|
|
1,279,851 |
|
|
1,264,448 |
|
Selling, general and administrative expenses |
31,668 |
|
|
36,669 |
|
|
118,072 |
|
|
128,062 |
|
Loss on sale of non-financial assets |
4 |
|
|
- |
|
|
9 |
|
|
1 |
|
Impairment charge |
- |
|
|
8,918 |
|
|
- |
|
|
8,918 |
|
Restructuring costs, net |
377 |
|
|
2 |
|
|
584 |
|
|
1,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
16,014 |
|
|
7,189 |
|
|
66,645 |
|
|
113,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other finance costs |
22,785 |
|
|
9,306 |
|
|
70,710 |
|
|
40,965 |
|
Other expense (recovery) |
(5,838 |
) |
|
25,724 |
|
|
4,943 |
|
|
36,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
(933 |
) |
|
(27,841 |
) |
|
(9,008 |
) |
|
35,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery) |
(43,184 |
) |
|
600 |
|
|
(51,007 |
) |
|
8,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
42,251 |
|
|
(28,441 |
) |
|
41,999 |
|
|
27,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of pensions |
(31,450 |
) |
|
23,820 |
|
|
106,968 |
|
|
(16,977 |
) |
Remeasurements of post-retirement benefits |
891 |
|
|
(1,044 |
) |
|
6,910 |
|
|
(4,871 |
) |
Items that may be subsequently reclassified to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjustment |
(1,721 |
) |
|
(13,585 |
) |
|
(1,652 |
) |
|
(5,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) for the
period |
(32,280 |
) |
|
9,191 |
|
|
112,226 |
|
|
(27,526 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) for the period |
9,971 |
|
|
(19,250 |
) |
|
154,225 |
|
|
(220 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Kruger Products L.P. |
Consolidated Statement of Cash Flows |
(thousands of Canadian dollars) |
|
|
|
3-month period ended
December 31, 2021 |
|
|
3-month period ended
December 31, 2020 |
|
|
12-month period ended
December 31, 2021 |
|
|
12-month period ended
December 31, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Cash flows from (used
in) operating activities |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
42,251 |
|
|
(28,441 |
) |
|
41,999 |
|
|
27,306 |
|
Items not affecting cash |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
20,789 |
|
|
18,632 |
|
|
82,081 |
|
|
67,129 |
|
Amortization |
1,099 |
|
|
473 |
|
|
3,638 |
|
|
1,657 |
|
Loss on sale of property, plant and equipment |
55 |
|
|
822 |
|
|
381 |
|
|
909 |
|
Change in amortized cost of Partnership units liability |
(4,971 |
) |
|
36,109 |
|
|
5,312 |
|
|
47,012 |
|
Foreign exchange gain |
(1,258 |
) |
|
(10,385 |
) |
|
(760 |
) |
|
(10,299 |
) |
Change in fair value of derivatives |
- |
|
|
- |
|
|
- |
|
|
(360 |
) |
Interest expense and other finance costs |
22,785 |
|
|
9,306 |
|
|
70,710 |
|
|
40,965 |
|
Pension and post-retirement benefits |
3,700 |
|
|
3,514 |
|
|
16,186 |
|
|
14,635 |
|
Provisions |
398 |
|
|
94 |
|
|
1,945 |
|
|
6,231 |
|
Income tax expense (recovery) |
(43,184 |
) |
|
600 |
|
|
(51,007 |
) |
|
8,655 |
|
Loss on sale of non-financial assets |
4 |
|
|
- |
|
|
9 |
|
|
1 |
|
Impairment charge |
- |
|
|
8,918 |
|
|
- |
|
|
8,918 |
|
Total items not affecting cash |
(583 |
) |
|
68,083 |
|
|
128,495 |
|
|
185,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in non-cash working
capital |
53,974 |
|
|
33,242 |
|
|
(66,769 |
) |
|
60,328 |
|
Contributions to pension and
post-retirement benefit plans |
(4,071 |
) |
|
(3,829 |
) |
|
(15,522 |
) |
|
(15,622 |
) |
Provisions paid |
(100 |
) |
|
(140 |
) |
|
(4,273 |
) |
|
(2,194 |
) |
Income tax payments |
(533 |
) |
|
70 |
|
|
(2,552 |
) |
|
(1,738 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities |
90,938 |
|
|
68,985 |
|
|
81,378 |
|
|
253,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used
in) investing activities |
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
(26,693 |
) |
|
(18,823 |
) |
|
(46,131 |
) |
|
(31,581 |
) |
Purchases of property, plant and equipment and software
related to the TAD Sherbrooke Project and
the Sherbrooke Expansion Project |
(10,787 |
) |
|
(69,230 |
) |
|
(99,060 |
) |
|
(263,348 |
) |
Interest paid on credit
facilities related to the TAD Sherbrooke Project |
- |
|
|
(3,509 |
) |
|
(608 |
) |
|
(10,676 |
) |
Government assistance
received |
931 |
|
|
398 |
|
|
931 |
|
|
398 |
|
Purchases of software |
(50 |
) |
|
(3,341 |
) |
|
(824 |
) |
|
(4,974 |
) |
Purchases of trademarks |
- |
|
|
(4,538 |
) |
|
- |
|
|
(4,538 |
) |
Proceeds on sale of
shares |
- |
|
|
- |
|
|
- |
|
|
992 |
|
Proceeds on sale of property,
plant and equipment |
5 |
|
|
- |
|
|
13 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities |
(36,594 |
) |
|
(99,043 |
) |
|
(145,679 |
) |
|
(313,727 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used
in) financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term
debt |
14,085 |
|
|
69,135 |
|
|
239,282 |
|
|
262,673 |
|
Repayment of long-term
debt |
(2,030 |
) |
|
(8,194 |
) |
|
(23,943 |
) |
|
(92,714 |
) |
Payment of deferred financing
fees |
(610 |
) |
|
(9 |
) |
|
(9,545 |
) |
|
(509 |
) |
Payment of lease
liabilities |
(5,646 |
) |
|
(4,777 |
) |
|
(24,600 |
) |
|
(19,283 |
) |
Interest paid on long-term
debt |
(17,228 |
) |
|
(3,944 |
) |
|
(41,981 |
) |
|
(25,706 |
) |
Distributions and advances paid, net |
(10,466 |
) |
|
(8,032 |
) |
|
(51,826 |
) |
|
(26,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from (used in) financing activities |
(21,895 |
) |
|
44,179 |
|
|
87,387 |
|
|
98,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash |
|
|
|
|
|
|
|
|
|
|
|
equivalents held in foreign currency |
(63 |
) |
|
(2,851 |
) |
|
(800 |
) |
|
(2,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash during the period |
32,386 |
|
|
11,270 |
|
|
22,286 |
|
|
35,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash - Beginning of period |
118,639 |
|
|
117,469 |
|
|
128,739 |
|
|
93,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash - End of period |
151,025 |
|
|
128,739 |
|
|
151,025 |
|
|
128,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kruger Products L.P. |
Segment and Geographic Results |
(thousands of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3-month period ended
December 31, 2021 |
|
|
3-month period ended
December 31, 2020 |
|
|
12-month period ended
December 31, 2021 |
|
|
12-month period ended
December 31, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
363,959 |
|
|
333,199 |
|
|
1,260,103 |
|
|
1,304,599 |
|
AFH |
60,070 |
|
|
51,772 |
|
|
205,058 |
|
|
211,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment revenue |
424,029 |
|
|
384,971 |
|
|
1,465,161 |
|
|
1,515,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
43,726 |
|
|
44,198 |
|
|
167,289 |
|
|
223,391 |
|
AFH |
(1,733 |
) |
|
(2,358 |
) |
|
(4,907 |
) |
|
(8,990 |
) |
Corporate and other costs |
(3,655 |
) |
|
(5,627 |
) |
|
(8,951 |
) |
|
(16,566 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted EBITDA |
38,338 |
|
|
36,213 |
|
|
153,431 |
|
|
197,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
21,888 |
|
|
19,105 |
|
|
85,719 |
|
|
68,786 |
|
Interest expense and other
finance costs |
22,785 |
|
|
9,306 |
|
|
70,710 |
|
|
40,965 |
|
Change in amortized cost of
Partnership units liability |
(4,971 |
) |
|
36,109 |
|
|
5,312 |
|
|
47,012 |
|
Other expense |
391 |
|
|
- |
|
|
391 |
|
|
- |
|
Change in fair value of
derivatives |
- |
|
|
- |
|
|
- |
|
|
(360 |
) |
Loss on sale of property, plant and equipment |
55 |
|
|
822 |
|
|
381 |
|
|
909 |
|
Loss on sale of non-financial assets |
4 |
|
|
- |
|
|
9 |
|
|
1 |
|
Impairment charge |
- |
|
|
8,918 |
|
|
- |
|
|
8,918 |
|
Restructuring costs, net |
377 |
|
|
2 |
|
|
584 |
|
|
1,275 |
|
Foreign exchange gain |
(1,258 |
) |
|
(10,385 |
) |
|
(760 |
) |
|
(10,299 |
) |
Consulting costs |
|
|
|
|
|
|
|
|
|
|
|
related to operational transformation initiatives |
- |
|
|
- |
|
|
- |
|
|
4,331 |
|
Corporate development related costs |
- |
|
|
177 |
|
|
93 |
|
|
336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
(933 |
) |
|
(27,841 |
) |
|
(9,008 |
) |
|
35,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery) |
(43,184 |
) |
|
600 |
|
|
(51,007 |
) |
|
8,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
42,251 |
|
|
(28,441 |
) |
|
41,999 |
|
|
27,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
245,142 |
|
|
244,093 |
|
|
892,658 |
|
|
915,898 |
|
U.S. |
178,887 |
|
|
140,878 |
|
|
572,503 |
|
|
600,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
424,029 |
|
|
384,971 |
|
|
1,465,161 |
|
|
1,515,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
KP Tissue Inc. |
Statement of Financial Position |
(thousands of Canadian dollars) |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
$ |
|
|
$ |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Distributions receivable |
1,781 |
|
|
1,755 |
|
Receivable from Partnership |
- |
|
|
21 |
|
Income tax recoverable |
208 |
|
|
- |
|
|
1,989 |
|
|
1,776 |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Investment in associate |
78,727 |
|
|
69,537 |
|
|
|
|
|
|
|
Total assets |
80,716 |
|
|
71,313 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Dividend payable |
1,781 |
|
|
1,755 |
|
Payable to Partnership |
246 |
|
|
- |
|
Current portion of advances from Partnership |
2,014 |
|
|
874 |
|
Income tax payable |
- |
|
|
1,722 |
|
|
4,041 |
|
|
4,351 |
|
Non-current
liabilities |
|
|
|
|
|
Deferred income taxes |
806 |
|
|
634 |
|
|
|
|
|
|
|
Total
liabilities |
4,847 |
|
|
4,985 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Common shares |
21,844 |
|
|
20,355 |
|
Contributed surplus |
144,819 |
|
|
144,819 |
|
Deficit |
(103,561 |
) |
|
(111,907 |
) |
Accumulated other comprehensive income |
12,767 |
|
|
13,061 |
|
|
|
|
|
|
|
Total
equity |
75,869 |
|
|
66,328 |
|
|
|
|
|
|
|
Total liabilities and
equity |
80,716 |
|
|
71,313 |
|
|
|
|
|
|
|
KP Tissue Inc. |
Statement of Comprehensive Income (Loss) |
(thousands of Canadian dollars, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3-month period ended
December 31, 2021 |
|
|
3-month period ended
December 31, 2020 |
|
|
12-month period ended
December 31, 2021 |
|
|
12-month period ended
December 31, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (loss) |
4,833 |
|
|
(5,583 |
) |
|
800 |
|
|
(1,428 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Dilution gain |
78 |
|
|
106 |
|
|
321 |
|
|
634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
4,911 |
|
|
(5,477 |
) |
|
1,121 |
|
|
(794 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (recovery) |
1,424 |
|
|
(1,181 |
) |
|
(118 |
) |
|
1,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
3,487 |
|
|
(4,296 |
) |
|
1,239 |
|
|
(1,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
net of tax expense (recovery) |
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of pensions |
(3,584 |
) |
|
2,169 |
|
|
13,568 |
|
|
(1,841 |
) |
Remeasurements of post-retirement benefits |
78 |
|
|
(94 |
) |
|
614 |
|
|
(442 |
) |
Items that may be subsequently reclassified to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjustment |
(252 |
) |
|
(2,064 |
) |
|
(294 |
) |
|
(936 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) for the
period |
(3,758 |
) |
|
11 |
|
|
13,888 |
|
|
(3,219 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) for the period |
(271 |
) |
|
(4,285 |
) |
|
15,127 |
|
|
(5,172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
0.35 |
|
|
(0.44 |
) |
|
0.13 |
|
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding |
9,889,893 |
|
|
9,747,812 |
|
|
9,835,582 |
|
|
9,703,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
KP Tissue Inc. |
Statement of Cash Flows |
(thousands of Canadian dollars) |
|
|
|
3-month period ended
December 31, 2021 |
|
|
3-month period ended
December 31, 2020 |
|
|
12-month period ended
December 31, 2021 |
|
|
12-month period ended
December 31, 2020 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Cash flows from (used in) operating
activities |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
3,487 |
|
|
(4,296 |
) |
|
1,239 |
|
|
(1,953 |
) |
Items not affecting cash |
|
|
|
|
|
|
|
|
|
|
|
Equity (income) loss |
(4,833 |
) |
|
5,583 |
|
|
(800 |
) |
|
1,428 |
|
Dilution gain |
(78 |
) |
|
(106 |
) |
|
(321 |
) |
|
(634 |
) |
Income taxes expense (recovery) |
1,424 |
|
|
(1,181 |
) |
|
(118 |
) |
|
1,159 |
|
Total items not affecting cash |
(3,487 |
) |
|
4,296 |
|
|
(1,239 |
) |
|
1,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in non-cash working capital |
138 |
|
|
52 |
|
|
233 |
|
|
146 |
|
Tax payments |
(709 |
) |
|
(297 |
) |
|
(4,020 |
) |
|
(1,801 |
) |
Tax Distribution received |
- |
|
|
- |
|
|
1,738 |
|
|
781 |
|
Advances received |
571 |
|
|
245 |
|
|
2,049 |
|
|
874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from (used in) operating activities |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activites |
|
|
|
|
|
|
|
|
|
|
|
Partnership unit distributions received |
1,402 |
|
|
1,402 |
|
|
5,560 |
|
|
5,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from
investing activities |
1,402 |
|
|
1,402 |
|
|
5,560 |
|
|
5,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
financing activities |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid, net |
(1,402 |
) |
|
(1,402 |
) |
|
(5,560 |
) |
|
(5,595 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities |
(1,402 |
) |
|
(1,402 |
) |
|
(5,560 |
) |
|
(5,595 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents during the
period |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - Beginning of
period |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - End of period |
- |
|
|
- |
|
|
- |
|
|
- |
|
KP Tissue (TSX:KPT)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
KP Tissue (TSX:KPT)
Historical Stock Chart
Von Mär 2023 bis Mär 2024