Stock Name: CAS
Amount: CAD 0.04
Announcement Date: 10/11/2011
Record Date: 30/11/2011
Dividend Detail:
KINGSEY FALLS, QC, Nov. 10, 2011 /CNW Telbec/ - 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 and nine-month periods ended
September 30, 2011
Commenting on the third quarter results and recent strategic actions,
Mr. Alain Lemaire, President and Chief Executive Officer stated:
"Although we are still looking for stronger results, overall, we are
encouraged by our performance during the past three months. For a
second consecutive quarter, our operating results continued to move in
a positive direction. Three of our four segments posted an improvement
in their quarterly sequential financial performance, and the several
proactive measures taken to address our lesser-performing units have
continued to pay off.
Moreover, in the face of ever more volatile markets and economic
conditions, we have continued to refine our strategic goals. In the
coming quarters, we will pursue the implementation of initiatives aimed
at improving our competitive position through enhanced productivity and
profitability. The Greenpac containerboard mill, the acquisition of
Papersource, the sale of our Burnaby mill and the closure of our Le
Gardeur plant are prime examples of these measures. We are highly
confident that these measures will have a positive impact on our
financial performance on both the near and long term".
Third Quarter 2011 Strategic Highlights
Modernization measures:
Construction kick-off for the new, state-of-the-art, Greenpac containerboard mill.
Acquisition of the remaining 50% of the shares of Papersource, a leading
tissue paper converter (effective in November 2011). This transaction
should add more than $125 million to Cascades' annual sales and have an
immediate positive impact on net profitability.
Restructuration and optimization measures:
Closure of the Burnaby (British Columbia) containerboard mill and
divestiture of the land and building for $20 million (effective in
October 2011).
Closure of the Le Gardeur corrugated box plant (effective in Q4 2011).
Third Quarter 2011 Financial Highlights
Improved operating results compared to Q2 2011, in spite of the increase
in average raw material costs and the production interruption following
a flood in one of our tissue mills.
27% sequential increase ($17 million) in operating income before
depreciation and amortization (EBITDA), excluding specific items.
Significant F/X gains on working capital items and on our cash
management following the divestiture of Dopaco.
Almost fourfold increase in cash flow from operations in comparison to
Q2 2011.
Notwithstanding significant improved operating results compared to the
previous quarter, net loss per share, excluding specific items, of $0.05 given tax adjustments of approximately $7 million ($0.07 per
share).
Net loss per share, including specific items, of $0.20, mostly
reflecting net impairment losses and unrealized losses on financial
instruments (both non-cash items).
761,600 shares bought back (1% of shares outstanding) at an average
price of $4.90.
Financial Summary
Selected consolidated information | | | | ||
(in millions of Canadian dollars, except amounts per share) | Q3/2011 | Q3/2010 | Q2/2011 | ||
| | | | ||
Sales | 947 | 832 | 991 | ||
Excluding specific items 1 | | | | ||
| Operating income before depreciation and amortization (OIBD or EBITDA) | 79 | 94 | 62 | |
| Operating income | 34 | 54 | 15 | |
| Net earnings (loss) | (5) | 33 | (6) | |
| | per common share | $(0.05) | $0.35 | $(0.06) |
| Cash flow from operations (adjusted) | 61 | 72 | 17 | |
As reported | | | | ||
Operating income before depreciation and amortization (OIBD or EBITDA) 1 | 53 | 72 | 65 | ||
Operating income | 8 | 32 | 18 | ||
Net earnings (loss) | (19) | 24 | 117 | ||
| per common share | $(0.20) | $0.25 | $1.21 | |
Cash flow from operations (adjusted) 1 | 60 | 71 | 16 | ||
Note 1 - see the supplemental information on non-IFRS measures. | | | | ||
Results Analysis for the three-month period ended September 30, 2011 (compared to the same period of the previous year)
In the third quarter of 2011, the financial results and balance sheet
reflect the full consolidation2 of Reno De Medici's ("RdM"), the second largest European producer of
coated recycled boxboard.
In comparison with the same period last year, sales rose by 14% to $947
million as of result of higher selling prices and the full
consolidation of RdM. These factors were partly offset by the 6%
appreciation of the Canadian dollar, the impact of the divestiture of
three facilities and the closure of one box plant, as well as by
slightly lower shipments.
Operating income, excluding specific items, amounted to $34 million
compared to $54 million in Q3 2010. The full consolidation of RdM and
the significant F/X gains on our cash management and working capital
items, were more than offset by the major rise of all main variable
costs, namely recycled fibre, pulp, energy, chemical products and
freight. Also, our profitability was negatively impacted by lower
selling prices in Canadian dollars and the flood related 17 day closure
of one of our tissue mills. When including specific items, the
operating income amounted to $8 million in comparison to $32 million in
the same period last year.
On a segmented basis, all groups were negatively affected by variable
cost inflation. However, our tissue paper, boxboard and specialty paper
segments benefited from higher selling prices. Also, our boxboard
segment posted improved profitability mostly due to the full
consolidation of RdM.
In the third quarter of 2011, the following specific items impacted
operating income and/or net earnings (before tax):
a $14 million net impairment loss related to restructuring actions
(impact on operating income and net earnings);
a $11 million unrealized loss on financial instruments (impact on
operating income and net earnings);
$1 million in closure and restructuring costs (impact on operating
income and net earnings);
a $5 million foreign exchange gain on long-term debt and financial
instruments (impact on net earnings);
a $4 million after-tax loss resulting from definitive closing price
adjustments on the divestiture of Dopaco (discontinued operations,
impact on net earnings);
a $1 million gain included in the share of results of associates, joint
ventures and non-controlling interest (impact on net earnings)
For further details, see the two following tables on IFRS and non-IFRS
measures reconciliation.
The net loss excluding specific items amounted to $5 million ($0.05 per
share) in the third quarter of2011 compared to net earnings of $33
million ($0.35 per share) for the same period of last year. During the
period, our net results were significantly impacted by tax adjustments
(approximately $7 million, $0.07 per share). Including specific items,
the net loss amounted to $19 million ($0.20 per share) compared to net
earnings of $24 million ($0.25 per share) for the same quarter in 2010.
Compared to September 30, 2010, the net debt decreased by 7% to $1,360
million. However, this amount includes the consolidation of RdM's net
debt of $148 million, which is without recourse to Cascades. Excluding
RdM's net debt, Cascades' net debt would have amounted to $1,212
million on September 30, 2011, a decline of $250 million (17%) relative
to September 30, 2010.
Results Analysis for the three-month period ended September 30, 2011 (compared to the second quarter of 2011)
In comparison to the previous quarter, sales decreased 4% mostly due the
unfavourable seasonality in our European boxboard operations and the
divestiture of two North American boxboard facilities. Nonetheless, the
operating income improved mainly as a result of the strategic actions
implemented (divestiture and closure), higher selling prices, and F/X
gains on our cash management following the sale of Dopaco. All this
more than offset the rise of our recycled fibre costs and lower
shipments in our European boxboard operations.
In comparison to the second quarter of 2011, net debt increased by $72
million, of which more than 80% ($59 million) is due to the decrease of
the Canadian dollar at the end of the period.
Near-term Outlook
Mr. Alain Lemaire, President and Chief Executive Officer added: "Looking
ahead to the next quarter, we are quite encouraged by the recent
substantial drop in recycled fibre costs and the depreciation of the
Canadian dollar. This should help to offset the traditional seasonal
decrease in demand in most of our sectors, and the negative impact of
the economic instability on our European operations. To conclude, we
anticipate that our results will be positively impacted by the
implementation of selling price increases in our tissue paper segment
and the realization of our restructuring actions".
Dividend on Common Shares and Normal Course Issuer Bid
The Board of Directors of Cascades declared a quarterly dividend of
$0.04 per share to be paid December 14, 2011 to shareholders of record
at the close of business on December 2, 2011. This dividend paid by
Cascades is an "eligible dividend" as per the Income Tax Act (Bill
C-28, Canada). In addition, in the third quarter of 2011, in accordance
with its normal course issuer bid program, Cascades purchased for
cancellation 761,600 shares at an average price of $4.90 representing
an aggregate amount of approximately $3.7 million. In the first nine
months of the year, Cascades purchased for cancellation 1,338,063
shares at an average price of $5.72 representing an aggregate amount of
approximately $7.7 million.
Transition to International Financial Reporting Standards (IFRS)
All financial information, including comparative figures pertaining to
Cascades' 2010 results, has been prepared in accordance with
International Financial Reporting Standards (IFRS). Until the first
quarter of 2011, the Corporation prepared its consolidated financial
statements and interim financial statements in accordance with Canadian
generally accepted accounting principles (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 Third Quarter
results investor presentation. For further details, please refer to the
investor presentation on the impact of adoption of IFRS, the third
quarter 2011 report and the 2010 annual report. These documents are
available at www.cascades.com/investors.
Supplemental information on non-IFRS measures
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 Corporation 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 Corporation's operating segments.
Additionally, the Corporation believes that these items provide
additional measures often used by investors to assess a corporation'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 Corporation believes that it
is useful for investors to be aware of specific items that have
adversely or positively affected its IFRS 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 Corporation'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, operating income excluding
specific items and operating income before depreciation excluding
specific items or earnings before interests, taxes, depreciation and
amortization excluding specific items:
| | ||
(in millions of Canadian dollars) | Q3/2011 | Q3/2010 | Q2/2011 |
| | | |
Net earnings (loss) | (19) | 24 | 117 |
Net loss (earnings) from discontinued operations | 3 | (8) | (108) |
Non-controlling interest | (4) | - | 1 |
Share of results of associates and joint ventures | (1) | (16) | (2) |
Provision for (recovery of) income taxes | 9 | 1 | (22) |
Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 4 | 5 |
Financing expense | 25 | 27 | 27 |
| |||
Operating income | 8 | 32 | 18 |
Specific items : | | | |
Inventory adjustment resulting from business acquisition | - | - | 6 |
Loss (gain) on disposal and others | - | 15 | (8) |
Net impairment loss | 14 | 1 | - |
Closure and restructuring costs | 1 | 1 | 1 |
Unrealized loss (gain) on financial instruments | 11 | 5 | (2) |
| 26 | 22 | (3) |
| |||
Operating income - excluding specific items | 34 | 54 | 15 |
Depreciation and amortization | 45 | 40 | 47 |
Operating income before depreciation and amortization (OIBD or EBITDA) - excluding specific items | 79 | 94 | 62 |
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 share) | Net earnings (loss) | | Net earnings (loss) per share 1 | ||||
| Q3/2011 | Q3/2010 | Q2/2011 | | Q3/2011 | Q3/2010 | Q2/2011 |
| | | | | | | |
As per IFRS | (19) | 24 | 117 | | $(0.20) | $0.25 | $1.21 |
Specific items : | - | | | | | | |
Inventory adjustment resulting from business acquisition | - | - | 6 | | $ - | $ - | $0.04 |
Loss (gain) on disposal and others | - | 15 | (8) | | $(0.01) | $0.12 | $(0.22) |
Net impairment loss | 14 | 1 | - | | $0.11 | $0.01 | $ - |
Closure and restructuring costs | 1 | 1 | 1 | | $0.01 | $0.01 | $0.01 |
Unrealized loss (gain) on financial instruments | 11 | 5 | (2) | | $0.10 | $0.05 | $(0.02) |
Foreign exchange loss (gain) on long-term debt and financial instruments | (5) | 4 | 5 | | $(0.05) | $0.03 | $0.05 |
Share of results of associates, joint ventures and non-controlling interests | (1) | (11) | - | | $(0.01) | $(0.12) | $ - |
Included in discontinued operations, net of income tax | 4 | - | (110) | | $0.04 | $ - | $(1.13) |
Tax effect on specific items and other tax adjustments | (10) | (6) | (15) | | $(0.04) | $ - | $ - |
| 14 | 9 | (123) | | $0.15 | $0.10 | $(1.27) |
Excluding specific items | (5) | 33 | (6) | | $(0.05) | $0.35 | $(0.06) |
Note 1 - Tax effect on specific items and other tax adjustments, per share, only includes the impact of tax adjustments. | |||||||
The following table reconciles cash flow (adjusted) from operations
activities to cash flow from operations excluding specific items:
| | ||
| Cash flow from operations | ||
(in millions of Canadian dollars) | Q3/2011 | Q3/2010 | Q2/2011 |
| | | |
Cash flow provided by (used from) operating activities | 41 | 60 | (27) |
Changes in non-cash working capital components | 19 | 11 | 43 |
Cash flow (adjusted) from operations | 60 | 71 | 16 |
Specific items, net of current income taxes : | | | |
Closure and restructuring costs | 1 | 1 | 1 |
Excluding specific items | 61 | 72 | 17 |
Consolidated Balance Sheets | | |
(in millions of Canadian dollars) (unaudited) | September 30, 2011 | December31, 2010 |
Assets | | |
Currentassets | | |
Cash and cashequivalents | 11 | 6 |
Accountsreceivable | 662 | 490 |
Current income tax assets | 26 | 21 |
Inventories | 526 | 476 |
Financial assets | 8 | 12 |
| 1,233 | 1,005 |
Long-term assets | | |
Investments in associates and joint ventures | 241 | 262 |
Property, plant andequipment | 1,695 | 1,553 |
Intangibleassets | 133 | 126 |
Financial assets | 24 | 2 |
Other assets | 113 | 94 |
Deferred income tax assets | 60 | 82 |
Goodwill | 297 | 313 |
| 3,796 | 3,437 |
Liabilities and Shareholders'Equity | | |
Currentliabilities | | |
Bank loans andadvances | 111 | 42 |
Accounts payable and accruedliabilities | 603 | 440 |
Current income tax liabilities | 76 | 2 |
Provisions for contingencies and charges | 24 | 23 |
Current portion of financial liabilities and other liabilities | 23 | 14 |
Current portion of long-termdebt | 37 | 7 |
Revolving credit facility, renewed in 2011 | - | 394 |
| 874 | 922 |
Long-term liabilities | | |
Long-termdebt | 1,223 | 960 |
Provisions for contingencies and charges | 40 | 37 |
Financial liabilities | 94 | 83 |
Otherliabilities | 211 | 196 |
Deferred income tax liabilities | 110 | 167 |
| 2,552 | 2,365 |
| | |
Equity attributable to Shareholders | | |
Capitalstock | 489 | 496 |
Contributedsurplus | 13 | 14 |
Retainedearnings | 655 | 576 |
Accumulated other comprehensiveloss | (54) | (37) |
| 1,103 | 1,049 |
Non-controlling interest | 141 | 23 |
Total equity | 1,244 | 1,072 |
| 3,796 | 3,437 |
Consolidated Statements of Earnings | | | | | |
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | |||
(in millions of Canadian dollars, except per share amounts and number of shares) (unaudited) | 2011 | 2010 | 2011 | 2010 | |
Sales | 947 | 832 | 2,712 | 2,399 | |
Cost of sales andexpenses | | | | | |
Cost of sales (excluding depreciation andamortization) | 801 | 653 | 2,300 | 1,912 | |
Depreciation andamortization | 45 | 40 | 128 | 117 | |
Selling and administrativeexpenses | 91 | 82 | 265 | 246 | |
Loss (gain) on disposal andothers | - | 15 | (7) | 15 | |
Net impairment loss and other restructuringcosts | 15 | 2 | 20 | 2 | |
Foreign exchange loss (gain) | (22) | 3 | (21) | 4 | |
Loss on financialinstruments | 9 | 5 | 7 | 7 | |
| 939 | 800 | 2,692 | 2,303 | |
Operating income | 8 | 32 | 20 | 96 | |
Financingexpense | 25 | 27 | 77 | 81 | |
Loss on refinancing of long-termdebt | - | - | - | 3 | |
Foreign exchange loss (gain) on long-termdebt and financial instruments | (5) | 4 | 5 | (1) | |
| (12) | 1 | (62) | 13 | |
Provision for (recovery of) incometaxes | 9 | 1 | (27) | 2 | |
Share of results of associates and joint ventures | (1) | (16) | (11) | (23) | |
Net earnings (loss) from continuing operations including non-controlling interest for the period | (20) | 16 | (24) | 34 | |
Net earnings (loss) from discontinued operations for the period | (3) | 8 | 111 | 20 | |
Net earnings (loss) including non-controlling interest for the period | (23) | 24 | 87 | 54 | |
Less: Non-controllinginterest | (4) | - | (3) | 1 | |
Net earnings (loss) attributable to Shareholders for the period | (19) | 24 | 90 | 53 | |
| | | | | |
Net earnings (loss) from continuing operations per common share | | | | | |
| Basic | (0.17) | 0.17 | (0.22) | 0.35 |
| Diluted | (0.17) | 0.17 | (0.22) | 0.34 |
Net earnings (loss) percommonshare | | | | | |
| Basic | (0.20) | 0.25 | 0.93 | 0.55 |
| Diluted | (0.20) | 0.24 | 0.93 | 0.54 |
Weighted average basic number of common shares outstanding | 95,986,989 | 96,645,061 | 96,317,941 | 96,874,069 | |
Consolidated Statements of Comprehensive Income (Loss) | | | | | ||
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | ||||
(in millions of Canadian dollars) (unaudited) | 2011 | 2010 | 2011 | 2010 | ||
Net earnings (loss) including non-controlling interest for theperiod | (23) | 24 | 87 | 54 | ||
Other comprehensive income(loss) | | | | | ||
| Translationadjustments | | | | | |
| | Change in foreign currency translation of foreignsubsidiaries | 31 | (7) | 7 | (18) |
| | Change in foreign currency translation related to net investment hedgingactivities | (33) | 17 | (14) | 9 |
| | Income taxes | 8 | (3) | 2 | (2) |
| Cash flowhedges | | | | | |
| | Change in fair value of foreign exchange forwardcontracts | (2) | 3 | (5) | 1 |
| | Change in fair value of interest rate swapagreements | (8) | - | (9) | (3) |
| | Change in fair value of commodity derivative financialinstruments | (1) | (11) | - | (21) |
| | Income taxes | 3 | 2 | 3 | 7 |
| | Actuarial loss on post-employment benefit obligations, net of related income taxes of $ 14 million | (39) | - | (39) | - |
| Available-for-sale financial assets | (1) | - | (1) | - | |
| (45) | (1) | (56) | (27) | ||
Comprehensive income (loss) including non-controlling interest for theperiod | (68) | 25 | 31 | 27 | ||
Less: Comprehensive income (loss) attributable to non-controlling interest for the period | (4) | - | (8) | 1 | ||
Comprehensive income attributable to Shareholders | (64) | 25 | 34 | 26 | ||
Consolidated Statements of Equity | | | | | | | | ||
| For the 9-month period endedSeptember 30, 2011 | ||||||||
(in millions of Canadian dollars) (unaudited) | Capital stock | Contributed surplus | Retained earnings | Accumulated other comprehensive loss | Total equity attributable to Shareholders | Non-controlling interest | Total equity | ||
Balance - Beginning ofperiod | 496 | 14 | 576 | (37) | 1,049 | 23 | 1,072 | ||
| Net earnings for theperiod | - | - | 90 | - | 90 | (3) | 87 | |
| Business acquisitions | - | - | - | - | - | 124 | 124 | |
| Other comprehensive loss | - | - | - | (17) | (17) | - | (17) | |
| Dividends | - | - | (12) | - | (12) | - | (12) | |
| Redemption of commonshares | (7) | (1) | - | - | (8) | - | (8) | |
| Acquisition of non-controlling interest | - | - | 1 | - | 1 | (2) | (1) | |
| Dividend paid to non-controlling interest | - | - | - | - | - | (1) | (1) | |
Balance - End ofperiod | 489 | 13 | 655 | (54) | 1,103 | 141 | 1,244 | ||
| | | | | | | | ||
| | | | | | | | ||
| For the 9-month period ended September 30, 2010 | ||||||||
(in millions of Canadian dollars) (unaudited) | Capital stock | Contributed surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total equity attributable to Shareholders | Non-controlling interest | Total equity | ||
Balance - Beginning ofperiod | 499 | 14 | 575 | 3 | 1,091 | 21 | 1,112 | ||
| Net earnings for theperiod | - | - | 53 | - | 53 | 1 | 54 | |
| Other comprehensive loss | - | - | - | (27) | (27) | - | (27) | |
| Dividends | - | - | (12) | - | (12) | - | (12) | |
| Stockoptions | - | 1 | - | - | 1 | - | 1 | |
| Redemption of commonshares | (3) | (1) | - | - | (4) | - | (4) | |
Balance - End ofperiod | 496 | 14 | 616 | (24) | 1,102 | 22 | 1,124 | ||
Consolidated Statements of Cash Flows | | | | | |
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | |||
(in millions of Canadian dollars) (unaudited) | 2011 | 2010 | 2011 | 2010 | |
Operating activities from continuing operations | | | | | |
Net earnings (loss) attributable to Shareholders for the period | (19) | 24 | 90 | 53 | |
Net loss (earnings) from discontinued operations for the period | 3 | (8) | (111) | (20) | |
Net earnings (loss) from continuing operations | (16) | 16 | (21) | 33 | |
Adjustmentsfor | | | | | |
| Financing expense | 25 | 27 | 77 | 81 |
| Depreciation andamortization | 45 | 40 | 128 | 117 |
| Loss (gain) on disposal andothers | - | 15 | (7) | 15 |
| Net impairment loss and other restructuringcosts | 14 | 1 | 18 | 1 |
| Unrealized loss on financialinstruments | 11 | 5 | 11 | 8 |
| Foreign exchange loss (gain) on long-termdebt and financial instruments | (5) | 4 | 5 | (1) |
| Provision for (recovery of) incometaxes | 9 | 1 | (27) | 2 |
| Share of results of associates and joint ventures | (1) | (16) | (11) | (23) |
| Non-controlling interest | (4) | - | (3) | 1 |
| Financing expense paid | (14) | (17) | (65) | (62) |
| Income tax paid | (4) | (2) | (13) | (10) |
| Others | - | (3) | (1) | (10) |
| 60 | 71 | 91 | 152 | |
Changes in non-cash working capitalcomponents | (19) | (11) | (89) | (72) | |
| 41 | 60 | 2 | 80 | |
Investing activities from continuingoperations | | | | | |
Purchase of investment in associates and joint ventures | (45) | (5) | (45) | (6) | |
Purchases of property, plant andequipment | (23) | (19) | (80) | (67) | |
Change in otherassets | (10) | (11) | (43) | (21) | |
Proceeds on sale of other assets | 50 | - | 50 | - | |
Business acquisitions, net of cash acquired | (3) | - | (4) | (3) | |
Business dispositions, net of cash disposed | - | - | 6 | - | |
| (31) | (35) | (116) | (97) | |
Financing activities from continuingoperations | | | | | |
Bank loans andadvances | 6 | (2) | 29 | 5 | |
Change in revolving creditfacilities | (9) | (26) | (266) | 175 | |
Purchase of senior notes | - | - | - | (165) | |
Increase in other long-termdebt | - | - | 1 | - | |
Payments of other long-termdebt | (4) | (1) | (13) | (5) | |
Redemption of commonshares | (4) | - | (8) | (4) | |
Acquisition of and dividend paid to non-controlling interest | (2) | - | (2) | - | |
Dividend paid to Corporation's Shareholders | (4) | (4) | (12) | (12) | |
| (17) | (33) | (271) | (6) | |
Change in cash and cash equivalents during the period fromcontinuingoperations | (7) | (8) | (385) | (23) | |
Change in cash and cash equivalents from discontinued operations, including proceeds ondisposal during the period | - | 9 | 390 | 30 | |
Net change in cash and cash equivalents during theperiod | (7) | 1 | 5 | 7 | |
Cash and cash equivalentsBeginning ofperiod | 18 | 14 | 6 | 8 | |
Cash and cash equivalentsEnd ofperiod | 11 | 15 | 11 | 15 | |
| | | | | |
| | | | | |
Segmented Information | | | | | |
| SALES | ||||
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | |||
(in millions of Canadian dollars) (unaudited) | 2011 | 2010 | 2011 | 2010 | |
Packaging products | | | | | |
Boxboard | | | | | |
| Manufacturing | 263 | 116 | 711 | 350 |
| Converting | 32 | 160 | 257 | 472 |
| Intersegment sales | (6) | (10) | (30) | (30) |
| Discontinued operations of converting segment | - | (119) | (148) | (350) |
| 289 | 147 | 790 | 442 | |
Containerboard | | | | | |
| Manufacturing | 117 | 155 | 372 | 437 |
| Converting | 210 | 227 | 609 | 638 |
| Intersegment sales | (78) | (90) | (235) | (257) |
| 249 | 292 | 746 | 818 | |
Specialty products | | | | | |
| Industrial packaging | 31 | 30 | 92 | 85 |
| Consumer packaging | 27 | 21 | 73 | 59 |
| Specialty papers | 73 | 74 | 218 | 230 |
| Recovery and recycling | 97 | 73 | 271 | 218 |
| Intersegment sales | (4) | (3) | (9) | (7) |
| 224 | 195 | 645 | 585 | |
Intersegment sales | (27) | (26) | (85) | (77) | |
| 735 | 608 | 2,096 | 1,768 | |
Tissue papers | | | | | |
| Manufacturing and converting | 221 | 226 | 638 | 641 |
Intersegment sales and others | (9) | (2) | (22) | (10) | |
Total | 947 | 832 | 2,712 | 2,399 | |
| | | | | |
| | | | | |
| Operating income before depreciation and amortization | ||||
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | |||
(in millions of Canadian dollars) (unaudited) | 2011 | 2010 | 2011 | 2010 | |
Packaging products | | | | | |
Boxboard | | | | | |
| Manufacturing | 7 | 4 | 20 | 19 |
| Converting | - | 16 | 13 | 49 |
| Others | - | (8) | - | (10) |
| Discontinued operations of converting segment | - | (15) | (12) | (43) |
| 7 | (3) | 21 | 15 | |
Containerboard | | | | | |
| Manufacturing | 2 | 29 | 12 | 55 |
| Converting | 23 | 24 | 51 | 71 |
| Others | (7) | 1 | (2) | (4) |
| 18 | 54 | 61 | 122 | |
Specialty products | | | | | |
| Industrial packaging | 3 | 4 | 7 | 11 |
| Consumer packaging | 2 | 2 | 5 | 5 |
| Specialty papers | (4) | 6 | (5) | 17 |
| Recovery and recycling | 9 | 6 | 21 | 18 |
| Others | (1) | - | - | - |
| 9 | 18 | 28 | 51 | |
| 34 | 69 | 110 | 188 | |
Tissue papers | | | | | |
| Manufacturing and converting | 17 | 25 | 43 | 67 |
Corporate | 2 | (22) | (5) | (42) | |
Operating income before depreciation and amortization | 53 | 72 | 148 | 213 | |
Depreciation and amortization | | | | | |
Boxboard | (12) | (9) | (33) | (27) | |
Containerboard | (15) | (18) | (46) | (52) | |
Specialty products | (7) | (6) | (21) | (20) | |
Tissue papers | (9) | (10) | (28) | (30) | |
Corporate and eliminations | (2) | (3) | (6) | (6) | |
Discontinued operations of Boxboard converting segment | - | 6 | 6 | 18 | |
| (45) | (40) | (128) | (117) | |
Operating income | 8 | 32 | 20 | 96 | |
| | | | | |
| | | | | |
| Purchases of property, plant and equipment | ||||
| For the 3-month periods ended September 30, | For the 9-month periods ended September 30, | |||
(in millions of Canadian dollars) (unaudited) | 2011 | 2010 | 2011 | 2010 | |
Packaging products | | | | | |
Boxboard | | | | | |
| Manufacturing | 10 | 2 | 27 | 6 |
| Converting | - | 3 | 2 | 10 |
| Discontinued operations of converting segment | - | (2) | (1) | (8) |
| 10 | 3 | 28 | 8 | |
Containerboard | | | | | |
| Manufacturing | 2 | - | 5 | 10 |
| Converting | 10 | 5 | 19 | 12 |
| 12 | 5 | 24 | 22 | |
Specialty products | | | | | |
| Industrial packaging | 1 | - | 2 | - |
| Consumer packaging | 2 | 2 | 3 | 4 |
| Specialty papers | 1 | 2 | 5 | 5 |
| Recovery and recycling | 2 | 1 | 5 | 3 |
| 6 | 5 | 15 | 12 | |
| 28 | 13 | 67 | 42 | |
Tissue papers | | | | | |
| Manufacturing and converting | 2 | 12 | 17 | 22 |
| | | | | |
Corporate | 2 | 8 | 4 | 15 | |
Total purchases | 32 | 33 | 88 | 79 | |
| | | | | |
Disposal of property, plant and equipment | (8) | (4) | (10) | (7) | |
Acquisition under capital-lease agreement | - | (4) | - | (4) | |
| 24 | 25 | 78 | 68 | |
Purchases of property, plant and equipment included in accounts payable | | | | | |
| Beginning of period | 15 | 8 | 18 | 13 |
| End of period | (16) | (14) | (16) | (14) |
Total investing activities | 23 | 19 | 80 | 67 | |
_______________________________
2 Cascades' ownership in RdM stood at 42.2% at the end of Q3 2011. In
addition to this stake, Cascades also has a call option over RdM shares
by virtue of which we are entitled to acquire up to a maximum 9.07% of
its current shares outstanding. Considering these facts, starting in
the second quarter of 2011, Cascades' consolidated figures include
those of RdM at 100% and net results are reported net of
non-controlling interests. Prior to the second quarter, Cascades'
investment in RdM was accounted for using the equity method.
For further information:
| Media Hubert Bolduc Vice-President, Communications and Public Affairs 514 912-3790 | | Source: Allan Hogg Vice-President and Chief Financial Officer |
| Investors Didier Filion Director, Investor relations 514282-2697 | | |
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