Quantcast

Resolute Reports Preliminary Second Quarter 2014 Results

July 31, 2014

US $

        --  Q2 adjusted EBITDA of $108 million / net income of $0.20 per
            share, excluding special items
        --  Significant cost and margin improvement following
            weather-affected Q1
        --  Strong lumber and paper shipments
        --  GAAP net loss of $2 million / $0.02 per share 

MONTREAL, July 31, 2014 /PRNewswire/ – Resolute Forest Products Inc.
(NYSE: RFP) (TSX: RFP) today reported net income for the quarter ended
June 30, 2014, excluding special items, of $19 million, or $0.20 per share, up from net income, excluding special items, of $18 million,
or $0.19 per share, in the second quarter of 2013. GAAP net loss was
$2 million, or $0.02 per share, compared to a net loss of $43 million,
or $0.45 per share, in the second quarter of 2013. Sales were $1.1
billion in the quarter, down $16 million from the second quarter of
2013.

Costs and margins normalized this quarter after the disappointing weather-affected first quarter, delivering much stronger
performances in each of our four segments
,” said Richard Garneau, president and chief executive officer. “We generated 50% of our adjusted EBITDA from our wood products and
market pulp businesses in the last twelve months. Our competitive
advantage rests on our cost-focused strategy and diversified asset
base, giving us the tools to maximize earnings power in this
challenging industry.”

Non-GAAP financial measures, such as adjustments for special items and
adjusted EBITDA, are explained and reconciled below.

Consolidated Quarterly Operating Income Variance Against Year-Ago Period

The Company recorded an operating loss of $8 million in the second
quarter, compared to operating income of $3 million in the year-ago
period. Overall pricing was essentially unchanged in the quarter, as
the 8% increase in market pulp prices was offset with lower average
transaction prices in newsprint, specialty papers and wood products.
Newsprint shipments rose by 3% and wood products by 22%, while
specialty papers shipments were 2% lower. The increase in lumber
shipments reflects an increase to production capacity and better market
demand. Market pulp shipments were down by 15%, however, in part due
to more internal consumption of hardwood kraft pulp and slowing North
American demand, particularly softwood and recycled grades. With lower start-up costs and pension and other postretirement benefit
expenses, overall manufacturing costs continued to improve. The
Company also benefitted from its electricity cogeneration assets and
asset optimization initiatives, offset in part by an increase in
overall fiber costs and in maintenance and repair costs. The weaker
Canadian dollar had a $22 million favorable effect on operating income.

The Company incurred $52 million of accelerated depreciation and other
closure-related costs, most of which came from the permanent closure of
an idled paper machine at its Catawba mill in South Carolina. Selling,
general and administrative expenses were $3 million lower in the
quarter, primarily because of a reduction in project costs and the
weaker Canadian dollar.

Segment Operating Income Variance Against Prior Quarter

Newsprint

At $18 million in the second quarter, newsprint generated $33 million
more operating income compared to the first quarter. Shipments rose by
6%, or 32,000 metric tons, as the Company recovered from
weather-related production disruptions and mechanical failures
experienced in the first quarter, despite fiber availability
limitations at certain mills in Québec. Export shipments represented
40% of total newsprint volume, compared to 44% in all of 2013. Average
transaction price was essentially unchanged but the realized margin
rose significantly due to a 9% drop in operating cost per unit (the “delivered cost“), to $568 per metric ton. The change in the delivered cost is due to
the influence of the severe winter in the first quarter and lower,
non-weather related maintenance costs in the second quarter. Finished
goods inventory rose by 14%.

Specialty Papers

Specialty papers generated an operating loss of $3 million in the
quarter, compared to a loss of $24 million in the previous quarter.
While the overall average transaction price was unchanged, higher
realized pricing for white papers was offset by the effect of lower
pricing for coated mechanical grades and, to a lesser degree,
supercalender grades. Volume rose by 8% overall, led mostly by
stronger shipments of white papers but also including improvements in
other grades. The increase reflects a seasonal pick-up in catalogue
and retail end-uses from first quarter lows as well as better
production consistency following the weather-related production
disruptions and mechanical failures experienced in the first quarter.
The delivered costs normalized to seasonally-consistent levels, falling
by 7%. There was a 15% increase in finished goods inventory.

Market Pulp

Operating income in the market pulp segment rose by $16 million in the
second quarter, to $24 million. Better realized pricing, strongest in
fluff pulp grades but also meaningful in softwood and recycled grades,
led to an overall 4% increase in average transaction price. Shipments
did not improve as expected following the effects of weather-related
production disruptions and distribution constraints in the first
quarter. This reflects greater internal consumption of hardwood kraft
pulp and softening North American demand, particularly softwood and
recycled grades. The delivered cost fell by 3%, to $652 per metric
ton, normalizing to seasonally-consistent levels following the
difficulties in the first quarter. Finished goods inventory rose by
15,000 metric tons, or 15%.

Wood Products

Compared to the first quarter, operating income in the wood products
segment rose by $3 million, to $15 million. The average transaction
price was unchanged, reflecting the largely offsetting effect of higher
market prices for stud lumber grades and lower market prices for random
length lumber grades. Despite continued distribution constraints for
lack of carrier availability carried over from the first quarter,
shipments were 19% higher, which in turn cut finished goods inventory
by 13% from the high levels reached in the first quarter. The
delivered cost rose by 1% in the quarter.

Outlook

Mr. Garneau added: “Our conscious effort to reduce lumber inventory in the second quarter
helped improve shipments in this segment. With inventories closer to
normal levels, we expect shipments to normalize in the third quarter.
Despite the ongoing slow recovery in U.S. housing starts, prices for
eastern grades held up in July. With our scale, financial strength and
lower-cost operating platform, we’ve positioned ourselves as a
long-term, reliable supplier for our customers, and our newsprint
business has responded well, especially in the domestic market. But
we’re not expecting much improvement in export markets for the
remainder of the year, based on lower international demand. As some
major hardwood pulp capacity increases are coming online, the balance
of the year remains somewhat uncertain for pulp. Pricing in specialty
papers is also more uncertain because of the pressure of lower
operating rates in coated papers and supercalender grades, although we
do expect to see seasonal improvement in shipment volumes.”

Earnings Conference Call

The Company will hold a conference call to discuss the financial results
at 9:00 a.m. (ET) today. The public is invited to join the call at
(888) 789-9572 (pass code 9740024) at least fifteen minutes before its
scheduled start time. A simultaneous webcast will also be available
using the link provided under “Presentations and Webcasts” in the
“Investors” section of www.resolutefp.com. A replay of the webcast will be archived on the Company’s website. A
phone replay will also be available until August 14 by dialing (800)
408-3053 with the pass code 1311668.

Description of Special Items



    Special items                           Second quarter   Second quarter

    (in millions)                                     2014             2013

    Foreign currency translation (gain)   $                $
    loss                                              (17)                7

    Closure costs, impairment and other
    related charges                                     52               12

    Inventory write-downs related to
    closures                                             3                1

    Start-up costs                                       1               13

    Net gain on disposition of assets                  (2)              (2)

    Net loss on extinguishment of debt                   -               59

    Transaction costs                                    -                2

    Other income, net                                  (3)              (1)

    Income tax effect of special items                (13)             (30)

      Total                               $             21 $             61

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release and the earnings conference call
referred to above that are not reported financial results or other
historical information of Resolute Forest Products Inc. are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. They include, for example,
statements relating to our: efforts to continue to reduce costs and
increase revenues and profitability, including our cost-reduction
initiatives; business and operating outlook, including the impact of
weather; assessment of market conditions; prospects, growth strategies
and the industry in which we operate; and strategies for achieving our
goals generally. Forward-looking statements may be identified by the
use of forward-looking terminology such as the words “should,” “would,”
“could,” “will,” “may,” “expect,” “believe,” “anticipate,” “attempt,”
“project” and other terms with similar meaning indicating possible
future events or potential impact on our business or Resolute’s
shareholders.

The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management’s current
assumptions, beliefs and expectations, all of which involve a number of
business risks and uncertainties that could cause actual results to
differ materially. The potential risks and uncertainties that could
cause Resolute’s actual future financial condition, results of
operations and performance to differ materially from those expressed or
implied in the presentation referred to above include, but are not
limited to, the potential risks and uncertainties set forth under the
heading “Risk Factors” in Part 1, Item 1A of Resolute’s annual report
on Form 10-K for the year ended December 31, 2013.

All forward-looking statements in the presentation referred to above are
expressly qualified by the cautionary statements contained or referred
to above and in Resolute’s other filings with the U.S. Securities and
Exchange Commission and the Canadian securities regulatory authorities.
Resolute disclaims any obligation to publicly update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
specialty papers, market pulp and wood products. The Company owns or
operates nearly 40 pulp and paper mills and wood products facilities in
the United States, Canada and South Korea, and power generation assets
in Canada. Marketing its products in close to 90 countries, Resolute
has third-party certified 100% of its managed woodlands to at least one
of three internationally recognized sustainable forest management
standards. The shares of Resolute Forest Products trade under the stock
symbol RFP on both the New York Stock Exchange and the Toronto Stock
Exchange.

Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one
of Canada’s Best 50 Corporate Citizens for 2014. Corporate Knights is
an organization recognized globally for its transparent and objective
approach to measuring corporate sustainability performance.


                                   RESOLUTE FOREST PRODUCTS INC.

                             CONSOLIDATED STATEMENTS OF OPERATIONS

                    (Unaudited, in millions except per share amounts)

                                       Three Months           Six Months

                                     Ended June 30,        Ended June 30,

                                     2014       2013       2014       2013

    Sales                         $  1,091   $  1,107   $  2,107   $  2,181

    Costs and expenses:                                                    

      Cost of sales, excluding
      depreciation, amortization
      and distribution costs           812        859      1,633      1,715

      Depreciation and
      amortization                      62         61        124        121

      Distribution costs               134        130        254        253

      Selling, general and
      administrative expenses           41         44         77         88

      Closure costs, impairment
      and other related charges
      (1)                               52         12         62         52

      Net gain on disposition of
      assets                           (2)        (2)        (2)        (2)

    Operating (loss) income            (8)          3       (41)       (46)

    Other income (expense):                                                

      Interest expense                (11)       (13)       (23)       (27)

      Other income (expense), net
      (2)                               20       (65)          7       (47)

    Income (loss) before income
    taxes                                1       (75)       (57)      (120)

    Income tax (provision)
    benefit                            (1)         31          7         71

    Net loss including
    noncontrolling interests             -       (44)       (50)       (49)

    Net (income) loss
    attributable to
    noncontrolling interests           (2)          1        (2)          1

    Net loss attributable to
    Resolute Forest Products Inc. $    (2)   $   (43)   $   (52)   $   (48)

    Net loss per share
    attributable to Resolute
    Forest Products Inc. common
    shareholders:                                                          

      Basic                       $ (0.02)   $ (0.45)   $ (0.55)   $ (0.51)

      Diluted                       (0.02)     (0.45)     (0.55)     (0.51)

    Weighted-average number of
    Resolute Forest Products Inc.
    common shares outstanding:                                             

      Basic                           94.6       94.8       94.6       94.8

      Diluted                         94.6       94.8       94.6       94.8



                               RESOLUTE FOREST PRODUCTS INC.

                                 CONSOLIDATED BALANCE SHEETS

                                   (Unaudited, in millions)

                                               June 30,   December 31,

                                                  2014          2013

    Assets                                                            

    Current assets:                                                   

      Cash and cash equivalents                $    263   $        322

      Accounts receivable trade, net                521            536

      Accounts receivable other                      89             98

      Inventories, net                              579            529

      Deferred income tax assets                     32             32

      Other current assets                           62             45

        Total current assets                      1,546          1,562

    Fixed assets, net                             2,184          2,289

    Amortizable intangible assets, net               64             66

    Deferred income tax assets                    1,237          1,266

    Other assets                                    216            202

        Total assets                           $  5,247   $      5,385

    Liabilities and equity                                            

    Current liabilities:                                              

      Accounts payable and accrued liabilities $    556   $        533

      Current portion of long-term debt               1              2

      Deferred income tax liabilities                32             32

        Total current liabilities                   589            567

    Long-term debt, net of current portion          597            597

    Pension and other postretirement benefit
    obligations                                   1,146          1,294

    Deferred income tax liabilities                  25             26

    Other long-term liabilities                      48             62

        Total liabilities                         2,405          2,546

    Commitments and contingencies                                     

    Equity:                                                           

      Common stock                                    -              -

      Additional paid-in capital                  3,753          3,751

      Deficit                                     (644)          (592)

      Accumulated other comprehensive loss        (220)          (271)

      Treasury stock at cost                       (61)           (61)

        Total Resolute Forest Products Inc.
        shareholders' equity                      2,828          2,827

      Noncontrolling interests                       14             12

        Total equity                              2,842          2,839

        Total liabilities and equity           $  5,247   $      5,385





                                  RESOLUTE FOREST PRODUCTS INC.

       STATEMENTS OF OPERATING INCOME AND NET INCOME ADJUSTED FOR SPECIAL
                                     ITEMS

    A reconciliation of our operating income, net income and net income
    per share reported before special items

    is presented in the tables below. See Note 3 to the Unaudited
    Consolidated Financial Statement Information

    regarding our use of non-GAAP measures.

    Three Months Ended June
    30, 2014                     Operating                                

    (unaudited, in millions
    except per share amounts) income (loss)   Net income (loss)      EPS

    GAAP as reported          $         (8)   $             (2)   $ (0.02)

    Adjustments for special
    items:                                                                

      Foreign currency
      translation gain                    -                (17)     (0.18)

      Closure costs,
      impairment and other
      related charges                    52                  52       0.55

      Inventory write-downs
      related to closures                 3                   3       0.03

      Start up costs                      1                   1       0.01

      Net gain on disposition
      of assets                         (2)                 (2)     (0.02)

      Other income, net                   -                 (3)     (0.03)

      Income tax effect of
      special items                       -                (13)     (0.14)

    GAAP as adjusted for
    special items             $          46   $              19   $   0.20

    Three Months Ended June
    30, 2013                     Operating                                

    (unaudited, in millions
    except per share amounts) income (loss)   Net income (loss)      EPS

    GAAP as reported          $           3   $            (43)   $ (0.45)

    Adjustments for special
    items:                                                                

      Foreign currency
      translation loss                    -                   7       0.07

      Closure costs,
      impairment and other
      related charges                    12                  12       0.13

      Inventory write-downs
      related to closures                 1                   1       0.01

      Start up costs                     13                  13       0.14

      Net gain on disposition
      of assets                         (2)                 (2)     (0.02)

      Net loss on
      extinguishment of debt              -                  59       0.62

      Transaction costs                   2                   2       0.02

      Other income, net                   -                 (1)     (0.01)

      Income tax effect of
      special items                       -                (30)     (0.32)

    GAAP as adjusted for
    special items             $          29   $              18   $   0.19

    Six Months Ended June 30,
    2014                         Operating                                

    (unaudited, in millions
    except per share amounts) income (loss)   Net income (loss)      EPS

    GAAP as reported          $        (41)   $            (52)   $ (0.55)

    Adjustments for special
    items:                                                                

      Foreign currency
      translation gain                    -                 (3)     (0.03)

      Closure costs,
      impairment and other
      related charges                    62                  62       0.66

      Inventory write-downs
      related to closures                 4                   4       0.04

      Start up costs                      1                   1       0.01

      Net gain on disposition
      of assets                         (2)                 (2)     (0.02)

      Other income, net                   -                 (4)     (0.04)

      Income tax effect of
      special items                       -                (13)     (0.14)

    GAAP as adjusted for
    special items             $          24   $             (7)   $ (0.07)

    Six Months Ended June 30,
    2013                         Operating                                

    (unaudited, in millions
    except per share amounts) income (loss)   Net income (loss)      EPS

    GAAP as reported          $        (46)   $            (48)   $ (0.51)

    Adjustments for special
    items:                                                                

      Foreign currency
      translation loss                    -                  12       0.13

      Closure costs,
      impairment and other
      related charges                    52                  52       0.55

      Inventory write-downs
      related to closures                 5                   5       0.05

      Start up costs                     28                  28       0.30

      Net gain on disposition
      of assets                         (2)                 (2)     (0.02)

      Net loss on
      extinguishment of debt              -                  59       0.62

      Transaction costs                   5                   5       0.05

      Other income, net                   -                (24)     (0.25)

      Income tax effect of
      special items                       -                (41)     (0.43)

    GAAP as adjusted for
    special items             $          42   $              46   $   0.49



                                RESOLUTE FOREST PRODUCTS INC.

                        STATEMENTS OF EBITDA AND ADJUSTED EBITDA

    A reconciliation of our net income including noncontrolling
    interests to EBITDA and Adjusted EBITDA is presented in the tables
    below.

    See Note 3 to the Unaudited Consolidated Financial Statement
    Information regarding our use of non-GAAP measures EBITDA and
    Adjusted EBITDA

    Three Months
    Ended June 30,
    2014                                               Corporate
    (unaudited, in           Specialty Market   Wood      and
    millions)      Newsprint  papers     pulp products   other   Total

    Net income
    (loss)
    including
    noncontrolling
    interests      $      18 $     (3) $   24 $     15 $    (54) $    -

    Interest
    expense                                                   11     11

    Income tax
    provision                                                  1      1

    Depreciation
    and
    amortization          17        22     13        8         2     62

    EBITDA                35        19     37       23      (40)     74

    Foreign
    currency
    translation
    gain                                                    (17)   (17)

    Closure costs,
    impairment and
    other related
    charges                                                   52     52

    Inventory
    write-downs
    related to
    closures                                                   3      3

    Start up costs                                             1      1

    Net gain on
    disposition of
    assets                                                   (2)    (2)

    Other income,
    net                                                      (3)    (3)

    Adjusted
    EBITDA         $      35 $      19 $   37 $     23 $     (6) $  108

    Three Months
    Ended June 30,
    2013                                               Corporate
    (unaudited, in           Specialty Market     Wood    and
    millions)      Newsprint  papers    pulp  products   other   Total

    Net income
    (loss)
    including
    noncontrolling
    interests      $      10 $       2 $   10 $     16 $    (82) $ (44)

    Interest
    expense                                                   13     13

    Income tax
    benefit                                                 (31)   (31)

    Depreciation
    and
    amortization          18        19     13        9         2     61

    EBITDA                28        21     23       25      (98)    (1)

    Foreign
    currency
    translation
    loss                                                       7      7

    Closure costs,
    impairment and
    other related
    charges                                                   12     12

    Inventory
    write-downs
    related to
    closures                                                   1      1

    Start up
    costs                                                     13     13

    Net gain on
    disposition of
    assets                                                   (2)    (2)

    Net loss on
    extinguishment
    of debt                                                   59     59

    Transaction
    costs                                                      2      2

    Other income,
    net                                                      (1)    (1)

    Adjusted
    EBITDA         $      28 $      21 $   23 $     25 $     (7) $   90

    Six Months
    Ended June 30,
    2014                                               Corporate
    (unaudited, in           Specialty Market   Wood      and
    millions)      Newsprint  papers     pulp products   other   Total

    Net income
    (loss)
    including
    noncontrolling
    interests      $       3 $    (27) $   32 $     27 $    (85) $ (50)

    Interest
    expense                                                   23     23

    Income tax
    benefit                                                  (7)    (7)

    Depreciation
    and
    amortization          35        44     26       16         3    124

    EBITDA                38        17     58       43      (66)     90

    Foreign
    currency
    translation
    gain                                                     (3)    (3)

    Closure costs,
    impairment and
    other related
    charges                                                   62     62

    Inventory
    write-downs
    related to
    closures                                                   4      4

    Start up
    costs                                                      1      1

    Net gain on
    disposition of
    assets                                                   (2)    (2)

    Other income,
    net                                                      (4)    (4)

    Adjusted
    EBITDA         $      38 $      17 $   58 $     43 $     (8) $  148

    Six Months
    Ended June 30,
    2013                                               Corporate
    (unaudited, in           Specialty Market     Wood    and
    millions)      Newsprint  papers     pulp products   other   Total

    Net income
    (loss)
    including
    noncontrolling
    interests      $       8 $      10 $    5 $     32 $   (104) $ (49)

    Interest
    expense                                                   27     27

    Income tax
    benefit                                                 (71)   (71)

    Depreciation
    and
    amortization          36        38     26       18         3    121

    EBITDA                44        48     31       50     (145)     28

    Foreign
    currency
    translation
    loss                                                      12     12

    Closure costs,
    impairment and
    other related
    charges                                                   52     52

    Inventory
    write-downs
    related to
    closures                                                   5      5

    Start up
    costs                                                     28     28

    Net gain on
    disposition of
    assets                                                   (2)    (2)

    Net loss on
    extinguishment
    of debt                                                   59     59

    Transaction
    costs                                                      5      5

    Other income,
    net                                                     (24)   (24)

    Adjusted
    EBITDA         $      44 $      48 $   31 $     50 $    (10) $  163


RESOLUTE FOREST PRODUCTS INC.

Notes to the Unaudited Consolidated Financial Statement Information



1. Closure costs, impairment and other related charges for the three and
six months ended June 30, 2014 and 2013 were comprised of the
following:


                                              Pension
                 Impairment                     Plan      Severance
    (Unaudited,  of Assets    Accelerated    Settlement   and Other
    in millions)    (1)       Depreciation      Gain        Costs     Total

    Permanent
    closures:                                                              

      Paper
      machine in
      Catawba,
      South
      Carolina
      (2)                                                                  

        Second
        quarter  $        -   $         45   $        -   $       -   $  45

        First
        six
        months            -             45            -           1      46

      Paper
      machine in
      Fort
      Frances,
      Ontario                                                              

        Second
        quarter           -              -            -           2       2

        First
        six
        months            -              -            -           8       8

      Paper
      machine in
      Iroquois
      Falls,
      Ontario                                                              

        Second
        quarter           -              -            -           -       -

        First
        six
        months            -              3            -           -       3

    Other                                                                  

        Second
        quarter           5              -            -           -       5

        First
        six
        months            6              -            -         (1)       5

    Total                                                                  

        Second
        quarter
        2014     $        5   $         45   $        -   $       2   $  52

        First
        six
        months
        2014              6             48            -           8      62

        Second
        quarter
        2013     $        -   $          9   $        -   $       3   $  12

        First
        six
        months
        2013              -             44          (1)           9      52

    (1) Due to declining market conditions, we recorded long-lived assets
        impairment charges of $4 million and $5 million for the three and
        six months ended June 30, 2014 related to our recycling assets to
        reduce the carrying value of the assets to their estimated fair
        value, which was determined based on estimated market prices for
        similar assets.

    (2) On May 22, 2014, we announced the permanent closure of our
        previously idled paper machine in Catawba.


2. Other income (expense), net for the three and six months ended June
30, 2014 and 2013 was comprised of the following:


                                   Three Months Ended   Six Months Ended
                                        June 30,            June 30,

    (Unaudited, in millions)       2014          2013   2014        2013

    Foreign exchange gain (loss)   $ 17   $       (7)   $  3   $    (12)

    Net loss on extinguishment of
    debt                              -          (59)      -        (59)

    Gain on forgiveness of note
    payable                           -             -      -          12

    Gain on liquidation settlement    -             -      -           9

    Miscellaneous income              3             1      4           3

                                   $ 20   $      (65)   $  7   $    (47)


3. Tables represent a reconciliation of certain financial statement line
items reported under generally accepted accounting principles (“GAAP”)
to our use of non-GAAP measures of operating income (loss), net income
(loss) and net income (loss) per share (“EPS”), in each case adjusted
for special items, as well as EBITDA and adjusted EBITDA, in each case
by reportable segment. We believe that these measures are useful
because they allow the reader to more easily compare our ongoing
operations, financial performance, and EPS from period to period. They
are also consistent with the indicators management uses internally to
measure our performance. These non-GAAP measures should be considered
in addition to and not a substitute for measures of financial
performance calculated and presented in accordance with GAAP in our
Consolidated Statement of Operations in our filings with the Securities
and Exchange Commission. Consequently, readers should rely on GAAP
operating income (loss), operating income (loss) by reportable segment,
net income (loss) and EPS. Non-GAAP measures included in our press
release include:

Operating income (loss) adjusted for special items – is defined as
operating income (loss) from our Consolidated Statements of Operations
excluding special items, such as closure costs, impairment and other
related charges, inventory write-downs related to closures, start up
costs,gains and losses on disposition of assets, transaction costs and
other charges or credits that are excluded from our segment’s
performance from GAAP operating income (loss).

Net income (loss) adjusted for special items – is defined as net income
(loss) from our Consolidated Statements of Operations excluding the
same items as under operating income (loss) adjusted for the special
items, in addition to the effects of foreign currency translation, net
loss on extinguishment of debt, and other income (expense).

EPS adjusted for special items – is defined as diluted EPS calculated
based on the net income (loss) adjusted for special items as described
above.

EBITDA by reportable segment – is defined as net income (loss) including
noncontrolling interests from our Consolidated Statements of
Operations, allocated to each of our reportable segments (newsprint,
specialty papers, market pulp and wood products) in accordance with
FASB ASC 290, “Segment Reporting,” and adjusted for depreciation and
amortization. EBITDA for the corporate and other segment is defined as
net income (loss) including noncontrolling interests from our
Consolidated Statements of Operations after the allocation to
reportable segments, adjusted for interest expense, income taxes and
depreciation and amortization.

Adjusted EBITDA – is defined as EBITDA excluding the special items
described above.

SOURCE Resolute Forest Products Inc.


Source: PR Newswire



comments powered by Disqus