May 6th, 2021
Domtar Corporation
First Quarter 2021 Earnings Call
All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted.
Safe Harbor
Forward-Looking Statements
All statements in this presentation about our expectations and future performance, including the statements related to our "Outlook" are "forward-looking statements." Actual results may differ materially from those suggested by these statements for a number of reasons, including the COVID-19 pandemic and the resulting decrease in paper sales and the challenges we face in maintaining manufacturing operations, changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, the failure to achieve our cost containment goals, costs of conversion in excess of our expectations, demand for linerboard, and the other reasons identified under "Risk Factors" in our Form 10-K for 2020 as filed with the SEC and as updated by subsequently filed Form 10-Qs. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.
Risk Factors
For a summary of the risk factors, please refer to Domtar's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission and as updated by subsequently filed Form 10-Q's.
Non-GAAP Financial Measures
This presentation refers to non-GAAP financial information. For a reconciliation to GAAP financial measures, please refer to the investors section of the company's website at http://www.domtar.com (Refer to Earnings in the Investor Relations section of the website).
Q1 2021 EARNINGS CALL | MAY 6, 2021 | 2 |
Overview
1Q' 21 Highlights
- Momentum continuing to build across our businesses
- Announced price increases across the majority of paper and pulp grades
- Severe weather affected pulp production and supply chains across North America
- Raw material and logistics cost headwinds mostly due to severe weather
- Successfully closed on sale of the Personal Care business
- Debt reduction of $294 million and repurchased 5.1 million shares
Q1 2021 EARNINGS CALL | MAY 6, 2021 | 4 |
Financial Overview
1Q' 21 Highlights
- Net loss of $0.54 per share
- Earnings from continuing operations before items* of $0.09 per share
- EBITDA before items* of $79 million
- Cash flow from operating activities of $33 million
- Capital expenditures of $51 million
- Free cash flow* of ($18) million
*Non-GAAP financial measure. Refer to reconciliation available at www.domtar.com (refer to Earnings in the Investor Relations section of the website)
Q1 2021 EARNINGS CALL | MAY 6, 2021 | 5 |
Earnings Statement
1Q' 21 vs. 4Q' 20 (in millions of dollars)
4Q'20 | 1Q'21 | |||
Sales | 920 | 944 | ||
Cost of sales | 776 | 809 | ||
Depreciation and amortization | 53 | 54 | ||
SG&A | 60 | 64 | ||
Impairment of long-lived assets | 25 | 6 | ||
Closure and restructuring costs | 30 | 3 | ||
Asset conversion costs | - | 8 | ||
Other operating loss (income), net | (4) | (2) | ||
Operating income (loss) | (20) | 2 | ||
Interest expense, net | 15 | 15 | ||
Non-service components of net periodic benefit | (4) | (6) | ||
cost | ||||
Income tax expense (benefit) | (16) | - | ||
Equity method investment loss, net of taxes | 1 | - | ||
Loss from continuing operations | (16) | (7) | ||
Loss from discontinued operations, net of taxes | (43) | (22) | ||
Net earnings (loss) | (59) | (29) | ||
Q1 2021 EARNINGS CALL | MAY 6, 2021 | 6 |
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Domtar Corporation published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 11:38:02 UTC.