Market Overview

Mercer International Inc. Reports Strong 2018 Second Quarter Results and Announces Quarterly Cash Dividend of $0.125

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Selected Highlights

  • Major Annual Maintenance totaling 37 days (55,400 ADMTs) completed at Celgar and Stendal mills
  • Strong pulp and lumber price realizations in the quarter
  • Second Quarter Net Income of $16.8 million ($0.26 per share) and Operating EBITDA* of $60.5 million.

NEW YORK, July 26, 2018 (GLOBE NEWSWIRE) -- Mercer International Inc. (NASDAQ:MERC) today reported strong results for the second quarter ended June 30, 2018 due to higher pulp and lumber sales realizations. Operating EBITDA in the current quarter was $60.5 million compared to $39.5 million in the second quarter of 2017 and $99.4 million in the first quarter of 2018.

For the second quarter of 2018, net income was $16.8 million, or $0.26 per share, compared to a net loss of $2.1 million, or $0.03 per share, for the second quarter of 2017 and $25.6 million, or $0.39 per share, in the prior quarter of 2018.

Summary Financial Highlights

  Q2
 2018
  Q1
2018
  Q2
2017
  YTD
2018
  YTD
2017
 
  (in millions, except per share amounts)
Pulp segment revenues $ 291.6   $ 314.2   $ 265.9   $ 605.9   $ 508.7  
Wood products segment revenues   54.9     53.7     17.3     108.6     17.3  
Total revenues $ 346.5   $ 367.9   $ 283.2   $ 714.4   $ 526.0  
           
Pulp segment operating income $ 37.0   $ 74.1   $ 21.1 (1) $ 111.0   $ 63.4 (1)
Wood products segment operating income   4.3     3.0     0.1     7.3     0.1  
Corporate and other operating loss   (3.8   (1.0 )   (2.3 )   (4.8 )   (3.3 )
Total operating income $ 37.5   $ 76.0   $ 18.9   $ 113.5   $ 60.2  
           
Pulp segment depreciation and amortization $ 21.1   $ 21.5   $ 19.4   $ 42.7   $ 38.5  
Wood products segment depreciation and amortization   1.8     1.7     1.1     3.5     1.1  
Corporate and other depreciation and amortization   0.1     0.1     0.1     0.2     0.2  
Total depreciation and amortization $ 23.0   $ 23.3   $ 20.6   $ 46.3   $ 39.8  
           
Operating EBITDA(*) $ 60.5   $ 99.4   $ 39.5 (1) $ 159.9   $ 100.1 (1)
Loss on settlement of debt $ -   $ 21.5 (2) $   $ 21.5 (2) $ 10.7 (3)
Legal cost award $ -   $ 7.0   $   $ 7.0   $  
Provision for income taxes $ 8.5   $ 9.6   $ 7.8   $ 18.0   $ 15.3  
Net income (loss) $ 16.8   $ 25.6   $ (2.1 ) $ 42.4   $ 7.6  
Net income (loss) per common share          
Basic and diluted $ 0.26   $ 0.39   $ (0.03 ) $ 0.65   $ 0.12  
Common shares outstanding at period end   65.2     65.2     65.0  
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