Mercer International Inc. Announces Preliminary Results for the Third Quarter of 2024 and Earnings Conference Call Details
Mercer International Inc. (Nasdaq: MERC) reported preliminary financial results for Q3 2024. Key highlights include:
- Revenues: $502.1 million
- Operating income: $8.8 million
- Operating EBITDA: $50.5 million
- Net loss: $17.6 million
- Liquidity: ~$554 million
The company faced unscheduled downtime at its mills, impacting pulp production. However, CEO Juan Carlos Bueno expressed optimism about capitalizing on strong NBSK markets for the remainder of 2024. NBSK list prices in Europe and North America were $1,535 and $1,735 per ADMT, respectively, as of September 30, 2024. The U.S. benchmark lumber price for Western SPF No. 2 was $390 per Mfbm. Mercer will report full Q3 2024 financial results on October 31, 2024.
Mercer International Inc. (Nasdaq: MERC) ha riportato risultati finanziari preliminari per il terzo trimestre del 2024. I punti salienti includono:
- Ricavi: 502,1 milioni di dollari
- Utile operativo: 8,8 milioni di dollari
- EBITDA operativo: 50,5 milioni di dollari
- Perdita netta: 17,6 milioni di dollari
- Liquidità: circa 554 milioni di dollari
La società ha affrontato inattività non programmata nei suoi stabilimenti, impattando la produzione di pasta. Tuttavia, il CEO Juan Carlos Bueno ha espresso ottimismo riguardo alla possibilità di sfruttare i forti mercati NBSK per il resto del 2024. I prezzi di listino NBSK in Europa e Nord America erano di 1.535 e 1.735 dollari per ADMT, rispettivamente, al 30 settembre 2024. Il prezzo di riferimento del legname negli Stati Uniti per il Western SPF No. 2 era di 390 dollari per Mfbm. Mercer riporterà i risultati finanziari completi del terzo trimestre 2024 il 31 ottobre 2024.
Mercer International Inc. (Nasdaq: MERC) informó resultados financieros preliminares para el tercer trimestre de 2024. Los aspectos más destacados incluyen:
- Ingresos: 502,1 millones de dólares
- Ingreso operativo: 8,8 millones de dólares
- EBITDA operativo: 50,5 millones de dólares
- Pérdida neta: 17,6 millones de dólares
- Liquidez: aproximadamente 554 millones de dólares
La empresa enfrentó paradas no programadas en sus fábricas, afectando la producción de pulpa. Sin embargo, el CEO Juan Carlos Bueno expresó optimismo sobre la posibilidad de aprovechar los sólidos mercados de NBSK durante el resto de 2024. Los precios de lista de NBSK en Europa y América del Norte eran de 1.535 y 1.735 dólares por ADMT, respectivamente, al 30 de septiembre de 2024. El precio de referencia de la madera en EE. UU. para el Western SPF No. 2 fue de 390 dólares por Mfbm. Mercer informará los resultados financieros completos del tercer trimestre de 2024 el 31 de octubre de 2024.
머서 인터내셔널 Inc. (나스닥: MERC)는 2024년 3분기 예비 재무 결과를 보고했습니다. 주요 사항은 다음과 같습니다:
- 수익: 5억 2천 1백만 달러
- 영업 이익: 880만 달러
- 영업 EBITDA: 5천 5백만 달러
- 순손실: 1천 7백 6십만 달러
- 유동성: 약 5억 5천 4백만 달러
회사는 제지 공장에서 계획되지 않은 가동 중단을 겪어 펄프 생산에 영향을 미쳤습니다. 그러나 CEO 후안 카를로스 부에노는 2024년 나머지 기간에 강한 NBSK 시장을 활용할 수 있을 것이라는 낙관적인 입장을 밝혔습니다. 2024년 9월 30일 기준 유럽과 북미의 NBSK 시세는 각각 1,535달러와 1,735달러였습니다. 미국의 Western SPF No. 2의 기준 목재 가격은 Mfbm 당 390달러로 평가되었습니다. 머서는 2024년 10월 31일에 3분기 전체 재무 결과를 보고할 예정입니다.
Mercer International Inc. (Nasdaq: MERC) a annoncé des résultats financiers préliminaires pour le troisième trimestre 2024. Les points clés incluent :
- Revenus : 502,1 millions de dollars
- Résultat d'exploitation : 8,8 millions de dollars
- EBITDA d'exploitation : 50,5 millions de dollars
- Perte nette : 17,6 millions de dollars
- Liquidité : environ 554 millions de dollars
L'entreprise a rencontré des temps d'arrêt non programmés dans ses usines, ce qui a eu un impact sur la production de pâte. Cependant, le PDG Juan Carlos Bueno a exprimé son optimisme quant à la possibilité de capitaliser sur les forts marchés NBSK pour le reste de 2024. Les prix de liste NBSK en Europe et en Amérique du Nord étaient respectivement de 1 535 et 1 735 dollars par ADMT, au 30 septembre 2024. Le prix de référence du bois d'œuvre aux États-Unis pour le Western SPF No. 2 était de 390 dollars par Mfbm. Mercer publiera les résultats financiers complets du troisième trimestre 2024 le 31 octobre 2024.
Mercer International Inc. (Nasdaq: MERC) hat vorläufige Finanzergebnisse für das dritte Quartal 2024 veröffentlicht. Die wichtigsten Punkte sind:
- Umsätze: 502,1 Millionen Dollar
- Betriebsgewinn: 8,8 Millionen Dollar
- Operatives EBITDA: 50,5 Millionen Dollar
- Nettoploss: 17,6 Millionen Dollar
- Liquidität: ca. 554 Millionen Dollar
Das Unternehmen sah sich ungeplanten Ausfallzeiten in seinen Werken gegenüber, was die Zellstoffproduktion beeinträchtigte. Der CEO Juan Carlos Bueno äußerte jedoch Optimismus, was die Nutzung der starken NBSK-Märkte für den Rest von 2024 betrifft. Die Listenpreise für NBSK in Europa und Nordamerika lagen am 30. September 2024 bei 1.535 und 1.735 Dollar pro ADMT. Der US-Benchmarkpreis für Bauholz der Klasse Western SPF No. 2 lag bei 390 Dollar pro Mfbm. Mercer wird die vollständigen finanziellen Ergebnisse für das dritte Quartal 2024 am 31. Oktober 2024 bekannt geben.
- Revenues increased to $502.1 million in Q3 2024 from $470.8 million in Q3 2023
- Operating income improved to $8.8 million in Q3 2024 from a loss of $3.4 million in Q3 2023
- Operating EBITDA rose to $50.5 million in Q3 2024 from $37.5 million in Q3 2023
- Strong liquidity position with approximately $554 million available
- NBSK list prices in Europe and North America increased significantly year-over-year
- Net loss of $17.6 million in Q3 2024
- Unscheduled downtime at mills impacted pulp production
- Production losses of approximately 71,200 ADMTs across three mills
- U.S. benchmark lumber prices decreased year-over-year
Insights
The preliminary Q3 2024 results for Mercer International show a mixed picture. While revenues increased slightly to
Positively, operating income turned to a profit of
The NBSK pulp market shows strength, with list prices in Europe and North America up
Despite these challenges, management expresses optimism about capitalizing on strong NBSK markets for the remainder of 2024, which could drive improved results if production issues are resolved.
Mercer's Q3 performance reflects broader trends in the pulp and paper industry. The company benefited from strengthening NBSK pulp prices, particularly in North America and Europe, which helped offset production challenges. This pricing environment bodes well for pulp producers, assuming they can maintain steady output.
However, the production disruptions Mercer faced highlight the operational risks inherent in the industry. Unplanned downtime can significantly impact financial results, as seen in the constrained Q3 performance despite favorable market conditions.
The lumber market appears softer, with the U.S. benchmark for Western SPF No. 2 down
Looking ahead, Mercer's ability to capitalize on strong pulp markets will depend on maintaining stable production across its mills. The lack of planned downtime for Q4 is positive, but investors should watch for any recurring operational issues that could hinder performance.
NEW YORK, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the “Company” or “Mercer”) today reported its preliminary financial results for the third quarter of 2024.
Preliminary Third Quarter Results
The following sets forth selected financial results for the periods indicated, including selected preliminary financial results for the three and nine months ended September 30, 2024:
| Q3 | Q2 | Q3 | YTD | YTD | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||||
| Revenues | $ | 502.1 | $ | 499.4 | $ | 470.8 | $ | 1,555.0 | $ | 1,523.4 | |||||||||
| Operating income (loss) | $ | 8.8 | $ | (43.8 | ) | $ | (3.4 | ) | $ | (35.4 | ) | $ | (132.4 | ) | |||||
| Operating EBITDA* | $ | 50.5 | $ | 30.4 | $ | 37.5 | $ | 144.5 | $ | (3.7 | ) | ||||||||
| Net loss | $ | (17.6 | ) | $ | (67.6 | ) | $ | (26.0 | ) | $ | (101.8 | ) | $ | (154.8 | ) | ||||
Liquidity
As of September 30, 2024, the Company had cash and cash equivalents of approximately
Mr. Juan Carlos Bueno, Chief Executive Officer, stated: "We continued to see strength in softwood pulp markets with relatively flat fiber costs in the third quarter of 2024. However, our operating results for the quarter were constrained due to the occurrence of several unrelated events that impacted pulp production, including the previously announced unscheduled downtime of 23 days (approximately 35,500 ADMTs) at our Mercer Peace River mill, a slower than normal maintenance start-up and other production upsets at our Stendal Mill (approximately 26,500 ADMTs) and isolated mechanical incidents at our Celgar mill (approximately 9,200 ADMTs).
Our team was able to restart the Mercer Peace River mill slightly earlier than initially planned, limiting the resulting downtime in the fourth quarter to about 12 days. We have no remaining downtime planned at our pulp mills for the fourth quarter of 2024."
Mr. Bueno concluded: "With the impacts of the unscheduled downtime events behind us, we are optimistic that we are strongly positioned to capitalize on the continued strength in NBSK markets across our pulp mills for the remainder of 2024."
Current Market Environment
As at September 30, 2024, NBSK list prices in Europe and North America were approximately
The U.S. benchmark lumber prices for Western SPF No. 2 and better was approximately
The preliminary results presented herein are unaudited, based on information available as of the date hereof, and are subject to completion of the Company’s financial reporting processes. The Company has not yet closed its books for the three and nine months ended September 30, 2024. Accordingly, its actual financial results for these periods may differ materially from the preliminary results contained herein due to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time its unaudited financial results for the period are finalized. Accordingly, you should not place undue reliance on these preliminary estimated financial results.
Conference Call Details
Mercer will report its full financial results for the third quarter of 2024 on October 31, 2024 after the close of market. The Company’s Chief Executive Officer, Juan Carlos Bueno, and Chief Financial Officer, Richard Short, will be hosting a conference call on November 1, 2024 at 10:00 a.m. ET to discuss the results.
The conference call will be available to interested parties live over the Internet through a webcast by clicking on or copying and pasting the following link into their web browser: https://edge.media-server.com/mmc/p/zp8mydck A link to the webcast will also be available on the Investor Relations section of the Company’s webpage. For those unable to participate in the live webcast, a replay of the webcast will be archived and accessible through the same link on the Company's website at https://mercerint.com/investors/events-calendar/.
To join the live call and ask a question, a participant must register by either desktop or mobile using the following URL: https://register.vevent.com/register/BIcd5fd2d7932445bba68bda4a2a4c2c20. Once registered, participants will receive a dial-in number and unique PIN number to access the call or can select the dial-out “Call Me” option to connect their phone instantly. Participants are advised to go to the website at least 15 minutes prior to the call to register.
About Mercer
Mercer International Inc. is a global forest products company with operations in Germany, the USA and Canada with consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets and 230,000 metric tonnes of biofuels. To obtain further information on the company, please visit its website at https://www.mercerint.com.
Operating EBITDA
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 (loss) 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 our operating facilities. In addition, management believes 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 (loss), 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 loss or operating loss as a measure of performance, nor as an alternative to net cash from (used in) operating activities as a measure of liquidity. Operating EBITDA is an internal measure and therefore may not be comparable to other companies.
The following table sets forth a reconciliation of net loss to Operating EBITDA for the periods indicated:
| Q3 | Q2 | Q3 | YTD | YTD | |||||||||||||||
| 20241 | 2024 | 2023 | 20241 | 2023 | |||||||||||||||
| Net loss | $ | (17.6 | ) | $ | (67.6 | ) | $ | (26.0 | ) | $ | (101.8 | ) | $ | (154.8 | ) | ||||
| Income tax provision (recovery) | (0.1 | ) | 1.3 | 4.0 | (5.2 | ) | (28.9 | ) | |||||||||||
| Interest expense | 26.4 | 26.8 | 21.9 | 80.8 | 61.0 | ||||||||||||||
| Other expenses (income) | 0.1 | (4.3 | ) | (3.3 | ) | (9.1 | ) | (9.7 | ) | ||||||||||
| Operating income (loss) | 8.8 | (43.8 | ) | (3.4 | ) | (35.4 | ) | (132.4 | ) | ||||||||||
| Add: Depreciation and amortization | 41.6 | 39.9 | 41.0 | 122.0 | 128.7 | ||||||||||||||
| Add: Loss on disposal of investment in joint venture | — | — | — | 23.6 | — | ||||||||||||||
| Goodwill impairment | — | 34.3 | — | 34.3 | — | ||||||||||||||
| Operating EBITDA | $ | 50.5 | $ | 30.4 | $ | 37.5 | $ | 144.5 | $ | (3.7 | ) | ||||||||
__________________________
(1) Preliminary results.
(2) Due to rounding, numbers presented may not add up precisely to totals we provide.
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. Words such as "expects", "anticipates", "are optimistic that", "projects", "intends", "designed", "will", "believes", "estimates", "may", "could" and variations of such words and similar expressions are intended to identify such forward-looking statements. 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.
APPROVED BY:
William D. McCartney
Chairman
(604) 684-1099
Juan Carlos Bueno
Chief Executive Officer
(604) 684-1099
*Operating EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States ("GAAP") and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. See "Operating EBITDA" herein for further information, including a reconciliation of net loss to Operating EBITDA.
FAQ
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