DOMTAR CORPORATION Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures (In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Earnings (loss) from continuing operations before items", "Earnings (loss) from continuing operations before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization". Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates "Earnings (loss) from continuing operations before items" and "EBITDA before items" by excluding the after-tax(pre-tax) effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
2021 | 2020 | ||||||||||||||||||
Q1 | Q2 | Q3 | YTD | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||
Reconciliation of "Earnings (loss) from continuing operations | |||||||||||||||||||
before items" to Net (loss) earnings | |||||||||||||||||||
Net (loss) earnings | ($) | (29) | 37 | 74 | 82 | 5 | 19 | (92) | (59) | (127) | |||||||||
(-) | Loss (earnings) from discontinued operations, net of taxes | ($) | 22 | 1 | - | 23 | (20) | (22) | (19) | 43 | (18) | ||||||||
(+) | Impairment of long-lived assets | ($) | 4 | 1 | 1 | 6 | - | - | 68 | 15 | 83 | ||||||||
(+) | Closure and restructuring costs | ($) | 2 | 23 | 4 | 29 | - | 1 | 42 | 20 | 63 | ||||||||
(+) | Asset conversion costs | ($) | 6 | 4 | 6 | 16 | - | - | - | - | - | ||||||||
(+) | Make-whole premium | ($) | - | 9 | - | 9 | - | - | - | - | - | ||||||||
(-) | Net gains on disposals of property, plant and equipment | ($) | - | - | (2) | (2) | - | - | - | - | - | ||||||||
(=) | Earnings (loss) from continuing operations before items | ($) | 5 | 75 | 83 | 163 | (15) | (2) | (1) | 19 | 1 | ||||||||
(/) | Weighted avg. number of common shares outstanding (diluted) | (millions) | 53.5 | 50.5 | 50.7 | 51.6 | 56.2 | 55.3 | 55.2 | 55.2 | 55.4 |
- Earnings (loss) from continuing operations before items
per diluted share | ($) | 0.09 | 1.49 | 1.64 | 3.16 | (0.27) | (0.04) | (0.02) | 0.34 | 0.02 | |
Reconciliation of "EBITDA" and "EBITDA before items" to | |||||||||||
Net (loss) earnings | |||||||||||
Net (loss) earnings | ($) | (29) | 37 | 74 | 82 | 5 | 19 | (92) | (59) | (127) | |
(-) | Loss (earnings) from discontinued operations, net of taxes | ($) | 22 | 1 | - | 23 | (20) | (22) | (19) | 43 | (18) |
(+) | Equity method investment loss, net of taxes | ($) | - | - | - | - | 1 | - | 1 | 1 | 3 |
(+) | Income tax expense (benefit) | ($) | - | 16 | 22 | 38 | 3 | (11) | (52) | (16) | (76) |
(+) | Interest expense, net | ($) | 15 | 20 | 7 | 42 | 14 | 15 | 14 | 15 | 58 |
(+) | Depreciation and amortization | ($) | 54 | 53 | 53 | 160 | 58 | 56 | 56 | 53 | 223 |
(+) | Impairment of long-lived assets | ($) | 6 | 1 | 1 | 8 | - | - | 111 | 25 | 136 |
(-) | Net gains on disposals of property, plant and equipment | ($) | - | - | (3) | (3) | - | - | - | (1) | (1) |
(=) | EBITDA | ($) | 68 | 128 | 154 | 350 | 61 | 57 | 19 | 61 | 198 |
(/) | Sales | ($) | 944 | 1,010 | 1,031 | 2,985 | 1,031 | 802 | 899 | 920 | 3,652 |
(=) EBITDA margin | (%) | 7% | 13% | 15% | 12% | 6% | 7% | 2% | 7% | 5% | |
EBITDA | ($) | 68 | 128 | 154 | 350 | 61 | 57 | 19 | 61 | 198 | |
(+) | Closure and restructuring costs | ($) | 3 | 25 | 5 | 33 | - | 1 | 68 | 30 | 99 |
(+) | Asset conversion costs | ($) | 8 | 5 | 9 | 22 | - | - | - | - | - |
(=) | EBITDA before items | ($) | 79 | 158 | 168 | 405 | 61 | 58 | 87 | 91 | 297 |
(/) | Sales | ($) | 944 | 1,010 | 1,031 | 2,985 | 1,031 | 802 | 899 | 920 | 3,652 |
(=) | EBITDA margin before items | (%) | 8% | 16% | 16% | 14% | 6% | 7% | 10% | 10% | 8% |
Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures (In millions of dollars, unless otherwise noted)
2021 | 2020 | ||||||||||||||||||
Reconciliation of "Free cash flow" to Cash flows from operating activities | Q1 | Q2 | Q3 | YTD | Q1 | Q2 | Q3 | Q4 | Year | ||||||||||
Cash flows from operating activities | ($) | 33 | 57 | 79 | 169 | 88 | 67 | 121 | 135 | 411 | |||||||||
(-) | Additions to property, plant and equipment | ($) | (51) | (71) | (69) | (191) | (62) | (40) | (28) | (45) | (175) | ||||||||
(=) | Free cash flow | ($) | (18) | (14) | 10 | (22) | 26 | 27 | 93 | 90 | 236 | ||||||||
"Net debt-to-total capitalization" computation | |||||||||||||||||||
Bank indebtedness | ($) | 4 | - | - | - | - | - | - | |||||||||||
(+) Long-term debt due within one year | ($) | 301 | 1 | 1 | 1 | 13 | 13 | 13 | |||||||||||
(+) | Long-term debt | ($) | 503 | 503 | 503 | 1,101 | 1,088 | 1,085 | 1,084 | ||||||||||
(=) | Debt | ($) | 808 | 504 | 504 | 1,102 | 1,101 | 1,098 | 1,097 | ||||||||||
(-) | Cash and cash equivalents | ($) | (671) | (346) | (344) | (152) | (124) | (218) | (309) | ||||||||||
(=) | Net debt | ($) | 137 | 158 | 160 | 950 | 977 | 880 | 788 | ||||||||||
(+) | Shareholders' equity | ($) | 2,091 | 2,173 | 2,215 | 2,181 | 2,277 | 2,211 | 2,260 | ||||||||||
(=) | Total capitalization | ($) | 2,228 | 2,331 | 2,375 | 3,131 | 3,254 | 3,091 | 3,048 | ||||||||||
Net debt | ($) | 137 | 158 | 160 | 950 | 977 | 880 | 788 | |||||||||||
(/) | Total capitalization | ($) | 2,228 | 2,331 | 2,375 | 3,131 | 3,254 | 3,091 | 3,048 | ||||||||||
(=) | Net debt-to-total capitalization | (%) | 6% | 7% | 7% | 30% | 30% | 28% | 26% |
"Earnings (loss) from continuing operations before items", "Earnings (loss) from continuing operations before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net (loss) earnings or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2021 (In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
Pulp and Paper | Corporate | Total | |||||||||||||||||||||||||||
Q1'21 | Q2'21 | Q3'21 | Q4'21 | YTD | Q1'21 | Q2'21 | Q3'21 | Q4'21 | YTD | Q1'21 | Q2'21 | Q3'21 | Q4'21 | YTD | |||||||||||||||
Reconciliation of Operating income (loss) | |||||||||||||||||||||||||||||
to "Operating income (loss) before items" | |||||||||||||||||||||||||||||
Operating income (loss) | ($) | 12 | 95 | 108 | - | 215 | (10) | (27) | (12) | - | (49) | 2 | 68 | 96 | - | 166 | |||||||||||||
(+) Impairment of long-lived assets | ($) | 6 | 1 | 1 | - | 8 | - | - | - | - | - | 6 | 1 | 1 | - | 8 | |||||||||||||
(+) Closure and restructuring costs | ($) | 2 | 8 | 1 | - | 11 | 1 | 17 | 4 | - | 22 | 3 | 25 | 5 | - | 33 | |||||||||||||
(+) Asset conversion costs | ($) | 8 | 5 | 9 | - | 22 | - | - | - | - | - | 8 | 5 | 9 | - | 22 | |||||||||||||
(-) Net gains on disposals of property, plant and | |||||||||||||||||||||||||||||
equipment | ($) | - | - | - | - | - | - | - | (3) | - | (3) | - | - | (3) | - | (3) | |||||||||||||
(=) Operating income (loss) before items | ($) | 28 | 109 | 119 | - | 256 | (9) | (10) | (11) | - | (30) | 19 | 99 | 108 | - | 226 | |||||||||||||
Reconciliation of "Operating income (loss) | |||||||||||||||||||||||||||||
before items" to "EBITDA before items" | |||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 28 | 109 | 119 | - | 256 | (9) | (10) | (11) | - | (30) | 19 | 99 | 108 | - | 226 | |||||||||||||
(+) Non-service components of net periodic benefit cost | ($) | 6 | 7 | 7 | - | 20 | - | (1) | - | - | (1) | 6 | 6 | 7 | - | 19 | |||||||||||||
(+) Depreciation and amortization | ($) | 54 | 53 | 53 | - | 160 | - | - | - | - | - | 54 | 53 | 53 | - | 160 | |||||||||||||
(=) EBITDA before items | ($) | 88 | 169 | 179 | - | 436 | (9) | (11) | (11) | - | (31) | 79 | 158 | 168 | - | 405 | |||||||||||||
(/) Sales | ($) | 944 | 1,010 | 1,031 | - | 2,985 | - | - | - | - | - | 944 | 1,010 | 1,031 | - | 2,985 | |||||||||||||
(=) EBITDA margin before items | (%) | 9% | 17% | 17% | - | 15% | - | - | - | - | - | 8% | 16% | 16% | - | 14% |
"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2020
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
Pulp and Paper | Corporate | Total | ||||||||||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Year | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Year | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Year | ||||||||||||||||
Reconciliation of Operating income (loss) | ||||||||||||||||||||||||||||||
to "Operating income (loss) before items" | ||||||||||||||||||||||||||||||
Operating income (loss) | ($) | 4 | 3 | (140) | (10) | (143) | (5) | (7) | (12) | (10) | (34) | (1) | (4) | (152) | (20) | (177) | ||||||||||||||
(+) Impairment of long-lived assets | ($) | - | - | 111 | 25 | 136 | - | - | - | - | - | - | - | 111 | 25 | 136 | ||||||||||||||
(+) Closure and restructuring costs | ($) | - | 1 | 67 | 28 | 96 | - | - | 1 | 2 | 3 | - | 1 | 68 | 30 | 99 | ||||||||||||||
(=) Operating income (loss) before items | ($) | 4 | 4 | 38 | 43 | 89 | (5) | (7) | (11) | (8) | (31) | (1) | (3) | 27 | 35 | 58 | ||||||||||||||
Reconciliation of "Operating income (loss) | ||||||||||||||||||||||||||||||
before items" to "EBITDA before items" | ||||||||||||||||||||||||||||||
Operating income (loss) before items | ($) | 4 | 4 | 38 | 43 | 89 | (5) | (7) | (11) | (8) | (31) | (1) | (3) | 27 | 35 | 58 | ||||||||||||||
(+) Non-service components of net periodic benefit cost | ($) | 4 | 6 | 4 | 5 | 19 | - | (1) | - | (1) | (2) | 4 | 5 | 4 | 4 | 17 | ||||||||||||||
(-) Net gains on disposals of property, plant and | ||||||||||||||||||||||||||||||
equipment | ($) | - | - | - | (1) | (1) | - | - | - | - | - | - | - | - | (1) | (1) | ||||||||||||||
(+) Depreciation and amortization | ($) | 58 | 56 | 56 | 53 | 223 | - | - | - | - | - | 58 | 56 | 56 | 53 | 223 | ||||||||||||||
(=) EBITDA before items | ($) | 66 | 66 | 98 | 100 | 330 | (5) | (8) | (11) | (9) | (33) | 61 | 58 | 87 | 91 | 297 | ||||||||||||||
(/) Sales | ($) | 1,031 | 802 | 899 | 920 | 3,652 | - | - | - | - | - | 1,031 | 802 | 899 | 920 | 3,652 | ||||||||||||||
(=) EBITDA margin before items | (%) | 6% | 8% | 11% | 11% | 9% | - | - | - | - | - | 6% | 7% | 10% | 10% | 8% |
"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
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Disclaimer
Domtar Corporation published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 12:04:11 UTC.
