Catalyst Paper results in the
fourth quarter were negatively impacted by lower sales volumes, higher
maintenance spending and a stronger Canadian dollar.
Catalyst posted a net loss of
$35.2 million for the quarter, in contrast to net earnings of $655.7 million in
the third quarter, when the one-time gains realized on emergence from creditor
protection were booked. Before specific items, net losses were $15.7 million
and $7.5 million in Q4 and Q3 respectively. Adjusted EBITDA was $7.2 million in
Q4, with no impact from restructuring costs, and $13.8 million in Q3 ($14.0
million before restructuring costs).
Net earnings of $583.2 million
for 2012 were heavily impacted by one-time non-cash restructuring credits and
fair value accounting adjustments. This compared with a $974.0 million net loss
in 2011 which was driven largely by asset impairment charges.
Catalyst entered creditor
protection on January 31, 2012, and exited on September 13, having achieved a US$390.4
million or 60 per cent reduction in its debt, savings in annual interest
expense of US$33.9 million, and a range of other cost reductions. The
restructuring included the permanent closure of its Snowflake mill at the end
of the third quarter. Results from this discontinued operation are excluded
from those being reported, with comparative periods having been restated
accordingly.
