updated 5/5/2011 9:45:34 PM ET 2011-05-06T01:45:34

NEW YORK, May 5, 2011 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq:MERC) (TSX:MRI.U) today reported strong results for the first quarter ended March 31, 2011. Operating EBITDA in the first quarter of 2011 was €50.8 million ($69.5 million), compared to €31.8 million ($44.0 million) in the first quarter of 2010 and €64.6 million ($87.8 million) in the fourth quarter of 2010. Operating EBITDA is defined on page 4 of this press release and reconciled to net income (loss) on page 7 of the financial tables in this press release.

During the quarter, we generated total revenues of €224.1 million ($306.6 million), compared to total revenues of €180.3 million ($249.5 million) in the comparative quarter of 2010. We reported net income of €29.1 million ($39.8 million), or €0.66 ($0.90) per basic share, for the first quarter of 2011, compared to a net loss of €7.5 million ($10.4 million), or €0.21 ($0.29) per basic share, in the first quarter of 2010 and a net income of €35.3 million ($48.0 million), or €0.84 ($1.14) per basic share in the fourth quarter of 2010.

Summary Financial Highlights      
       
  Q1 Q4 Q1
   2011   2010   2010 
  (in millions of Euros, except where otherwise stated)
Pulp revenues € 210.5 € 232.2 € 171.1
Energy revenues  13.7  13.4  9.1
Operating income (loss)  36.6  50.4  18.0
Operating EBITDA (loss)  50.8  64.6  31.8
Unrealized gain (loss) on derivative instruments  12.2  12.4  (6.5)
Foreign exchange gain (loss) on debt  1.1  (1.5)  (5.2)
Income tax benefit (provision)  (0.8)  0.2  (0.2)
Net income (loss) attributable to common shareholders  29.1  35.3  (7.5)
Net income (loss) per share attributable to common shareholders      
 Basic € 0.66 € 0.84 € (0.21)
 Diluted € 0.52 € 0.63 € (0.21)
Common shares outstanding at period end (000s)  45,386  43,000  36,483
       
Summary Operating Highlights      
       
  Q1 Q4 Q1
   2011   2010   2010 
Pulp Production ('000 ADMTs)  358.6  356.2   329.5
Scheduled Production Downtime ('000 ADMTs)  3.7  ‑   18.2
Pulp Sales ('000 ADMTs)  349.0  386.0   332.9
NBSK pulp list price in Europe ($/ADMT)  960  957   860
NBSK pulp list price in Europe (€/ADMT)  702  704   621
Average pulp sales realizations (€/ADMT)  593  593   507
Energy Production ('000 MWh)  407.8  393.0   337.7
Energy Sales ('000 MWh)  157.9  149.7   107.1
Average Spot Currency Exchange Rates:      
€ / $(1)  0.7304  0.7361   0.7240
C$ / $(1)  0.9856  1.0129   1.0401
C$ / €(2)  1.3487  1.3766   1.4406

__________

(1) Average Federal Reserve Bank of New York noon spot rate over the reporting period.

(2) Average Bank of Canada noon spot rate over the reporting period.

President's Comments

Mr. Jimmy S.H. Lee, President and Chairman, stated: "We are pleased with the strong first quarter as, despite a weakening U.S. dollar, we achieved Operating EBITDA of €50.8 million and net income of €29.1 million. Operating EBITDA declined from the record level in the prior quarter, primarily as a result of lower sales volumes resulting from very high shipments in the prior quarter and delays in shipping in the current quarter, the 6% decline of the U.S. dollar versus the Euro during the current quarter and a non-cash stock compensation charge of €2.1 million."

Mr. Lee continued: "Overall, the NBSK pulp market remains well balanced with NBSK inventories around 24 days. During the first quarter of 2011, NBSK list prices increased by $30 per ADMT in Europe and North America to end the quarter at $980 per ADMT and $990 per ADMT, respectively. In China, list prices increased by $50 per ADMT to end the quarter at $890 per ADMT. Such price increases were largely offset by the weak U.S. dollar. Subsequently, in April, due to continuing favorable market conditions and the weak U.S. dollar, producers implemented a further $30 per ADMT price increase, increasing prices to $1,010 per ADMT in Europe, $1,020 per ADMT in North America and $920 per ADMT in China, respectively."

Mr. Lee continued: "We are also continuing to implement high return capital projects designed to enhance our mills' technical capabilities and improve their operating results. During the first quarter of 2011, our Celgar mill finalized a contribution agreement with the Government of Canada for approximately C$9.7 million of grants to improve its fiber line and oxygen delignification process and reduce production costs. The mill also qualified for a C$1.6 million grant under the Canadian government's Transformative Technologies Program to install a new generator acid purification system designed to reduce the mill's chemical costs. As a result of such governmental support, we expect both these projects, when completed, to provide very attractive rates of return."

Mr. Lee concluded: "With our world-class mills and current strong pulp pricing and demand, we are well positioned to generate strong returns and continue to enhance value for our stakeholders in 2011."

Three Months Ended March 31, 2011 Compared to Three Months Ended March 31, 2010

Total revenues for the three months ended March 31, 2011 increased to €224.1 million ($306.6 million) from €180.3 million ($249.5 million) in the same period in 2010. Pulp revenues for the three months ended March 31, 2011 increased by approximately 23% to €210.5 million from €171.1 million in the comparative period of 2010, due to higher pulp prices, partially offset by a weaker U.S. dollar. Revenues from the sale of excess energy increased by approximately 51% in the first quarter to a record €13.7 million from €9.1 million in the same quarter last year, primarily as a result of energy sales from the Celgar Green Energy Project in 2011.

Pulp production increased to 358,557 ADMTs in the current quarter, from 329,455 ADMTs in the same quarter of 2010, primarily due to only two days of scheduled maintenance downtime at our Stendal mill in the current quarter, compared to ten days at Stendal in the first quarter of 2010.

Pulp sales volume increased to 348,995 ADMTs in the current quarter from 332,869 ADMTs in the comparative period of 2010, primarily as a result of stronger demand. Average pulp sales realizations increased by approximately 17% to €593 per ADMT in the first quarter of 2011, compared to €507 per ADMT in the same period last year, primarily due to higher pulp prices. 

Costs and expenses in the first quarter of 2011 increased to €187.5 million from €162.2 million in the comparative period of 2010, primarily due to higher fiber costs.

On average, our per unit fiber costs in the quarter increased by approximately 20% from the same period in 2010, primarily due to low harvesting activity in Germany as a result of the downturn in the lumber industry which has been compounded by demand for fiber from the European wood pellet and particle board industries. As a result, our German mills have been required to source fiber outside their traditional fiber baskets. We currently expect our overall fiber costs to remain stable at these levels in the short- to mid-term.

For the first quarter of 2011, operating income increased by approximately 103% to €36.6 million from €18.0 million in the comparative quarter of 2010, primarily due to higher pulp prices.

Interest expense in the first quarter of 2011 decreased to €15.9 million from €16.4 million in the comparative quarter of 2010, primarily due to reduced levels of debt associated with the Stendal mill.

Our Stendal mill recorded an unrealized gain of €12.2 million on our interest rate derivatives in the current quarter, compared to an unrealized loss of €6.5 million in the same quarter of last year. We recorded a foreign exchange gain on our debt of €1.1 million in the first quarter of 2011 compared to a loss of €5.2 million in the same period last year.

In the first quarter of 2011, the noncontrolling shareholder's interest in the Stendal mill's income was €4.5 million, compared to a loss of €3.7 million in the same quarter last year.

In the first quarter of 2011, Operating EBITDA increased by approximately 60% to €50.8 million from €31.8 million in the first quarter of 2010. Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and non-recurring capital asset impairment charges. Management uses Operating EBITDA as a benchmark measurement of its own operating results, and as a benchmark relative to its competitors. Management considers it to be a meaningful supplement to operating income as a performance measure primarily because depreciation expense and non-recurring capital asset impairment charges are not an actual cash cost, and depreciation expense varies widely from company to company in a manner that management considers largely independent of the underlying cost efficiency of their operating facilities. In addition, we believe Operating EBITDA is commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.

Operating EBITDA does not reflect the impact of a number of items that affect our net income, including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under GAAP, and should not be considered as an alternative to net income or income from operations as a measure of performance, nor as an alternative to net cash from operating activities as a measure of liquidity. Operating EBITDA has significant limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. For a reconciliation of net income (loss) attributable to common shareholders to Operating EBITDA, see page 7 of the financial tables included in this press release.

We reported net income attributable to common shareholders of €29.1 million, or €0.66 per basic and €0.52 per diluted share, for the first quarter of 2011, which included non-cash unrealized gains of €12.2 million on the Stendal interest rate derivatives and a €1.1 million non-cash foreign currency translation gain on our debt, partially offset by a non-cash charge for stock compensation of €2.1 million. In the first quarter of 2010, we reported a net loss attributable to common shareholders of €7.5 million, or €0.21 per basic and diluted share, which included non-cash unrealized losses of €6.5 million on the Stendal interest rate derivatives and a non-cash foreign exchange loss of €5.2 million on our debt.

Liquidity and Capital Resources

The following table is a summary of selected financial information for the periods indicated:

  As at March 31,

  2011 
As at December 31,

  2010 
  (in thousands)
Financial Position    
Cash and cash equivalents  € 123,241  € 99,022
Working capital   210,980   231,683
Property, plant and equipment   830,095   846,767
Total assets   1,207,287   1,216,075
Long-term liabilities   795,118   877,315
Total equity   257,308   213,563

As at March 31, 2011, we had approximately €26.4 million and C$35.0 million available under our Rosenthal and Celgar facilities, respectively. During the first quarter of 2011, we repaid and discharged €30.4 million of debt primarily by redeeming the balance of our 9.25% 2013 senior notes of approximately €15.2 million ($20.5 million) and repaying €14.6 million of principal under our Stendal mill's loan facility. At March 31, 2011, the principal amount outstanding under the Stendal loan facility was €486.1 million. In addition, in the first quarter of 2011, we reduced borrowings under our Celgar mill's revolving credit facility by €14.7 million (C$20.0 million).

As at March 31, 2011, we had outstanding €26.1 million in 2012 convertible subordinated notes which are redeemable by us commencing July 15, 2011. We currently expect to give notice of their redemption in the second quarter of 2011.

Restricted Group

The following table is a summary of selected financial information for the Restricted Group for the periods indicated.

  As at March 31,

  2011 
As at December 31,

  2010 
  (in thousands)
Restricted Group Financial Position    
Cash and cash equivalents  € 57,202  € 50,654
Working capital   127,551   150,667
Property, plant and equipment   350,034   362,274
Total assets   648,588   662,944
Long-term liabilities   252,060   312,631
Total equity   315,155   289,141

Earnings Release Call

In conjunction with this release, Mercer International Inc. will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for Friday, May 6, 2011 at 10:00 AM (Eastern Daylight Time). Listeners can access the conference call live and archived through June 6, 2011, over the Internet at http://investor.shareholder.com/media/eventdetail.cfm?eventid=95580&CompanyID=MERC&e=1&mediaKey=1AE35D7DABC3ECD95E2779DA87354812 or through a link on the Company's Investors/News Releases page at http://www.mercerint.com/s/NewsReleases.asp. Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software. A replay of this call will be available approximately two hours after the live call ends until June 6, 2011 through a link on the Company's Investors/News Releases page at http://www.mercerint.com/s/NewsReleases.asp.

Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, please visit its web site at http://www.mercerint.com .

The Mercer International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5417

The preceding includes forward looking statements which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.

 
MERCER INTERNATIONAL INC.
 
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands of Euros)
 
  March 31,

  2011 
December 31,

  2010 
ASSETS    
Current assets    
 Cash and cash equivalents  € 123,241  € 99,022
 Receivables   112,991  121,709
 Inventories   96,408  102,219
 Prepaid expenses and other  10,787  11,360
 Deferred income tax   22,414   22,570
Total current assets   365,841   356,880
Long-term assets    
 Property, plant and equipment   830,095  846,767
 Deferred note issuance and other   10,461  11,082
 Note receivable   890   1,346
    841,446   859,195
Total assets  € 1,207,287  € 1,216,075
     
LIABILITIES    
Current liabilities    
Accounts payable and accrued expenses  € 108,765  € 84,873
Pension and other post-retirement benefit obligations   703  728
Debt   45,393   39,596
Total current liabilities   154,861   125,197
Long-term liabilities    
 Debt   713,422  782,328
 Unrealized interest rate derivative losses   38,730  50,973
 Pension and other post-retirement benefit obligations   23,412  24,236
 Capital leases and other   11,607  12,010
 Deferred income tax   7,947   7,768
    795,118   877,315
Total liabilities  € 949,979  € 1,002,512
   
EQUITY  
Shareholders' equity    
 Share capital   227,588  219,211
 Paid-in capital   (5,877)  (3,899)
 Retained earnings (deficit)   18,097  (10,956)
 Accumulated other comprehensive income   35,458   31,712
Total shareholders' equity   275,266   236,068
     
Noncontrolling interest (deficit)   (17,958)   (22,505)
Total equity   257,308   213,563
Total liabilities and equity  € 1,207,287  € 1,216,075
 
MERCER INTERNATIONAL INC.
 
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands of Euros, except per share data)
 
  Three Months Ended
    March 31, 
    2011   2010 
     
Revenues    
 Pulp  € 210,458  € 171,121
 Energy   13,677   9,131
    224,135  180,252
Costs and expenses    
 Operating costs   163,355  140,409
 Operating depreciation and amortization   14,076   13,724
    46,704  26,119
 Selling, general and administrative expenses   10,230  8,095
 Purchase (sale) of emission allowances   (170)   ‑
Operating income (loss)   36,644   18,024
     
Other income (expense)    
 Interest expense   (15,906)  (16,423)
 Investment income (loss)   327  94
 Foreign exchange gain (loss) on debt   1,111  (5,231)
 Gain (loss) on extinguishment of debt   ‑  (929)
 Gain (loss) on derivative instruments   12,243   (6,546)
Total other income (expense)   (2,225)   (29,035)
Income (loss) before income taxes   34,419  (11,011)
Income tax benefit (provision) – current   (819)  (204)
– deferred   ‑   ‑
Net income (loss)   33,600  (11,215)
Less: net loss (income) attributable to noncontrolling interest   (4,547)   3,669
Net income (loss) attributable to common shareholders  € 29,053  € (7,546)
     
Net income (loss) per share attributable to common shareholders    
 Basic  € 0.66  € (0.21)
 Diluted  € 0.52  € (0.21)

 

 
MERCER INTERNATIONAL INC.
 
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of Euros)
 
  Three Months Ended
    March 31, 
    2011    2010 
Cash flows from (used in) operating activities    
 Net income (loss) attributable to common shareholders  € 29,053  € (7,546)
Adjustments to reconcile net income (loss) attributable to common shareholders to cash flows from operating activities    
Loss (gain) on derivative instruments   (12,243)  6,546
Foreign exchange (gain) loss on debt   (1,111)  5,231
Loss (gain) on extinguishment of debt   ‑  929
Depreciation and amortization   14,138  13,821
Accretion expense (income)   470  431
Noncontrolling interest   4,547  (3,669)
Stock compensation expense   2,068  506
Pension and other post-retirement expense, net of funding   (14)  194
Other   684  1,003
Changes in current assets and liabilities    
Receivables   7,177  (17,144)
Inventories   4,313  (5,259)
Accounts payable and accrued expenses   25,388  7,955
Other   359   (1,281)
 Net cash from (used in) operating activities   74,829   1,717
     
Cash flows from (used in) investing activities    
 Purchase of property, plant and equipment   (8,069)  (5,850)
 Proceeds on sale of property, plant and equipment   353  387
 Notes receivable   396   (84)
 Net cash from (used in) investing activities   (7,320)   (5,547)
     
Cash flows from (used in) financing activities    
 Repayment of notes payable and debt   (30,351)  (8,250)
 Repayment of capital lease obligations   (855)  (1,004)
 Proceeds from (repayment of) credit facilities, net   (14,652)  ‑
 Proceeds from government grants   4,112   9,415
 Net cash from (used in) financing activities   (41,746)   161
     
Effect of exchange rate changes on cash and cash equivalents   (1,544)   1,070
     
Net increase (decrease) in cash and cash equivalents   24,219  (2,599)
Cash and cash equivalents, beginning of period   99,022   51,291
Cash and cash equivalents, end of period  € 123,241  € 48,692
 
MERCER INTERNATIONAL INC.
 
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Balance Sheets
(Unaudited)
(In thousands of Euros)
 
The terms of the indenture governing our 9.5% senior unsecured notes require that we provide the results of operations and financial condition of Mercer International Inc. and our restricted subsidiaries under the indenture, collectively referred to as the "Restricted Group". As at and during the three months ended March 31, 2011 and 2010, the Restricted Group was comprised of Mercer International Inc., certain holding subsidiaries and our Rosenthal and Celgar mills. The Restricted Group excludes the Stendal mill.
 
    March 31, 2011 
 

 
Restricted

 Group 
Unrestricted

Subsidiaries
 

Eliminations
Consolidated

  Group 
ASSETS        
Current assets        
Cash and cash equivalents  € 57,202  € 66,039  € ‑ € 123,241
Receivables   63,063   49,928   ‑   112,991
Inventories   59,663   36,745   ‑   96,408
Prepaid expenses and other   6,582   4,205   ‑   10,787
Deferred income tax   22,414   ‑   ‑   22,414
Total current assets   208,924   156,917   ‑   365,841
         
Property, plant and equipment   350,034   480,061   ‑   830,095
Deferred note issuance and other   6,437   4,024   ‑   10,461
Due from unrestricted group   82,303   ‑   (82,303)   ‑
Note receivable   890   ‑   ‑   890
Total assets  € 648,588  € 641,002  € (82,303)  € 1,207,287
         
LIABILITIES        
Current liabilities        
Accounts payable and accrued expenses   € 53,444   € 55,321   € ‑ € 108,765
Pension and other post-retirement benefit obligations   703   ‑   ‑   703
Debt   27,226   18,167   ‑   45,393
Total current liabilities   81,373   73,488   ‑   154,861
         
Long-term liabilities        
Debt   213,711   499,711   ‑   713,422
Due to restricted group   ‑   82,303   (82,303)   ‑
Unrealized interest rate derivative losses   ‑   38,730   ‑   38,730
Pension and other post-retirement benefit obligations   23,412   ‑   ‑   23,412
Capital leases and other   6,990   4,617   ‑   11,607
Deferred income tax   7,947   ‑   ‑   7,947
Total liabilities   333,433   698,849   (82,303)   949,979
         
EQUITY        
Total shareholders' equity (deficit)   315,155 (39,889) 275,266
Noncontrolling interest (deficit)   ‑   (17,958)   ‑   (17,958)
Total liabilities and equity  € 648,588  € 641,002  € (82,303)  € 1,207,287
 
MERCER INTERNATIONAL INC.
 
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Balance Sheets
(Unaudited)
(In thousands of Euros)
 
   December 31, 2010 
 

 
Restricted

 Group 
Unrestricted

Subsidiaries
 

Eliminations
Consolidated

 Group 
ASSETS        
Current assets        
Cash and cash equivalents € 50,654 € 48,368 € – € 99,022
Receivables  70,865  50,844  –  121,709
Inventories  60,910  41,309  –  102,219
Prepaid expenses and other  6,840  4,520  –  11,360
Deferred income tax  22,570   –   –   22,570
Total current assets  211,839  145,041  –  356,880
         
Long-term assets        
Property, plant and equipment  362,274  484,493  –  846,767
Deferred note issuance and other  6,903  4,179  –  11,082
Due from unrestricted group  80,582  –  (80,582)  –
Note receivable  1,346   –   –   1,346
Total assets € 662,944  € 633,713  € (80,582)  € 1,216,075
         
LIABILITIES        
Current liabilities        
Accounts payable and accrued expenses € 44,015  € 40,858 € – € 84,873
Pension and other post-retirement benefit obligations  728  –  –  728
Debt  16,429   23,167   –   39,596
Total current liabilities  61,172  64,025  –  125,197
         
Long-term liabilities        
Debt  273,473  508,855  –  782,328
Due to restricted group  –  80,582  (80,582)  –
Unrealized interest rate derivative

losses
 –  50,973  –  50,973
Pension and other post-retirement

benefit obligations
 24,236  –  –  24,236
Capital leases and other  7,154  4,856  –  12,010
Deferred income tax  7,768   –   –   7,768
Total liabilities  373,803   709,291   (80,582)   1,002,512
         
EQUITY        
Total shareholders' equity (deficit) 289,141  (53,073)  –  236,068
Noncontrolling interest (deficit)  –   (22,505)   –   (22,505)
Total liabilities and equity € 662,944  € 633,713  € (80,582)  € 1,216,075
 
MERCER INTERNATIONAL INC.
 
RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE
Combined Condensed Statements of Operations
(Unaudited)
(In thousands of Euros)
 
    Three Months Ended March 31, 2011 
 

 
Restricted

 Group 
Unrestricted

Subsidiaries
 

Eliminations
Consolidated

 Group 
Revenues        
 Pulp € 115,226 € 95,232  € ‑ € 210,458
 Energy  5,846  7,831   ‑  13,677
   121,072  103,063   ‑  224,135
Operating costs  85,991  77,364   ‑  163,355
Operating depreciation and amortization  7,614  6,462   ‑  14,076
Selling, general and administrative expenses and other  6,191  3,869   ‑  10,060
   99,796  87,695   ‑  187,491
 Operating income (loss)  21,276  15,368   ‑  36,644
         
Other income (expense)        
 Interest expense  (7,273)  (9,851) 1,218 (15,906)
 Investment income (loss)  1,279  266   (1,218)  327
 Foreign exchange gain (loss) on debt  1,111  ‑   ‑  1,111
 Gain (loss) on derivative instruments  ‑  12,243   ‑  12,243
 Total other income (expense)  (4,883)  2,658   ‑  (2,225)
 Income (loss) before income taxes  16,393  18,026   ‑  34,419
Income tax benefit (provision)  (524)  (295)   ‑  (819)
Net income (loss)   15,869   17,731   ‑   33,600
Less: net (income) loss attributable to noncontrolling interest   ‑   (4,547)   ‑   (4,547)
Net income (loss) attributable to common shareholders € 15,869 € 13,184  € ‑ € 29,053
         
    Three Months Ended March 31, 2010 
 

 
Restricted

 Group 
Unrestricted

Subsidiaries
 

Eliminations
Consolidated

 Group 
Revenues        
 Pulp € 106,417 € 64,704 € ‑ € 171,121
 Energy  3,375  5,756  ‑  9,131
   109,792  70,460  ‑  180,252
Operating costs  81,665  58,744  ‑  140,409
Operating depreciation and amortization  7,213  6,511  ‑  13,724
Selling, general and administrative expenses and other  4,841  3,254  ‑  8,095
   93,719  68,509  ‑  162,228
 Operating income (loss)  16,073  1,951  ‑  18,024
         
Other income (expense)        
 Interest expense  (7,320) (10,264) 1,161 (16,423)
 Investment income (loss)  1,239  16  (1,161)  94
 Foreign exchange gain (loss) on debt  (5,231)  ‑  ‑  (5,231)
 Gain (loss) on extinguishment of debt  (929)  ‑  ‑  (929)
 Gain (loss) on derivative instruments  ‑  (6,546)  ‑  (6,546)
 Total other income (expense)  (12,241)  (16,794)  ‑  (29,035)
 Income (loss) before income taxes  3,832  (14,843)  ‑  (11,011)
Income tax benefit (provision)  (161)  (43)  ‑  (204)
Net income (loss)  3,671  (14,886)  ‑  (11,215)
Less: net (income) loss attributable to noncontrolling interest  ‑  3,669  ‑  3,669
Net income (loss) attributable to common shareholders € 3,671 € (11,217) € ‑ € (7,546)
 
MERCER INTERNATIONAL INC.
 
COMPUTATION OF OPERATING EBITDA
(Unaudited)
(In thousands of Euros)
 
 

 
Three Months Ended

  March 31, 
    2011    2010 
Net income (loss) attributable to common shareholders  € 29,053  € (7,546)
Net income (loss) attributable to noncontrolling interest   4,547   (3,669)
Income taxes (benefits)   819   204
Interest expense   15,906   16,423
Investment (income) loss   (327)   (94)
Foreign exchange (gain) loss on debt   (1,111)   5,231
Loss (gain) on extinguishment of debt   ‑   929
Loss (gain) on derivative instruments   (12,243)   6,546
Operating income (loss)   36,644   18,024
Add: Depreciation and amortization   14,138   13,821
Operating EBITDA(1)  € 50,782  € 31,845

__________

(1) Operating EBITDA does not reflect the impact of a number of items that affect our net income (loss) attributable to common shareholders, including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States, and should not be considered as an alternative to net income (loss) attributable to common shareholders or income (loss) from operations as a measure of performance, nor as an alternative to net cash from operating activities as a measure of liquidity. Operating EBITDA has significant limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.
 

 
COMPUTATION OF RESTRICTED GROUP OPERATING EBITDA
(Unaudited)
(In thousands of Euros)
 
 

 
Three Months Ended

  March 31, 
    2011    2010 
Restricted Group    
Net income (loss) attributable to common shareholders(1)  € 15,869  € 3,671
Income taxes (benefits)   524   161
Interest expense   7,273   7,320
Investment (income) loss   (1,279)   (1,239)
Foreign exchange (gain) loss on debt   (1,111)   5,231
Loss (gain) on extinguishment of debt   ‑   929
Operating income (loss)   21,276   16,073
Add: Depreciation and amortization   7,676   7,310
Operating EBITDA(2)  € 28,952  € 23,383

__________

(1) For the Restricted Group, net income (loss) attributable to common shareholders and net income (loss) are the same.

(2) Operating EBITDA does not reflect the impact of a number of items that affect our net income (loss) attributable to common shareholders, including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States, and should not be considered as an alternative to net income (loss) attributable to common shareholders or income (loss) from operations as a measure of performance, nor as an alternative to net cash from operating activities as a measure of liquidity. Operating EBITDA has significant limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.
 

CONTACT: APPROVED BY:
         
         Jimmy S.H. Lee
         Chairman & President
         (604) 684-1099
         
         David M. Gandossi
         Executive Vice-President &
         Chief Financial Officer
         (604) 684-1099

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 2.48%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.57%
13.57%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com