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Resolute Forest Products Inc. is a global leader in the forest products industry, renowned for its diverse range of products that include market pulp, tissue, wood products, and papers. These products are marketed in over 50 countries, demonstrating the company's expansive reach and international significance.
The company owns or operates approximately 40 facilities, as well as power generation assets, spread across the United States and Canada. A noteworthy aspect of Resolute's operations is their commitment to sustainability; the company has achieved third-party certification for 100% of its managed woodlands according to internationally recognized sustainable forest management standards.
Resolute has recently achieved significant milestones, including the sale of its Thunder Bay (Ontario) pulp and paper mill to an affiliate of Atlas Holdings. This transaction, completed on August 1, 2023, includes long-term woodchip and biomass supply agreements, ensuring ongoing collaboration with the Thunder Bay mill. This sale was in line with the consent agreement between Domtar Corporation and the Canadian Commissioner of Competition, following Domtar’s acquisition of Resolute. Despite the sale, Resolute continues to operate its sawmills and woodlands operations in Northwestern Ontario.
Headquartered in Montreal, Quebec, Resolute Forest Products is a subsidiary of Domtar Corporation and a part of the Paper Excellence Group. The company has earned recognition on a regional, North American, and global scale for its leadership in corporate social responsibility, sustainable development, and business practices. With its broad product portfolio and steadfast dedication to sustainable practices, Resolute remains a pivotal player in the forest products industry.
On March 4, 2022, Resolute Forest Products (NYSE: RFP) announced the completion of its acquisition of Louisiana-Pacific Corporation's 50% equity interest in Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership in Quebec. Following the acquisition, Louisiana-Pacific will serve as the exclusive distributor for the engineered wood products produced at these operations. This strategic move enhances Resolute's product offerings in the forest products sector, leveraging established distribution channels.
LP Building Solutions (NYSE: LPX) announced it will sell its 50% stake in two joint ventures producing I-joists to Resolute Forest Products Inc. (NYSE: RFP) for $50 million. The ventures, located in Larouche and Saint-Prime, Quebec, have been a 50-50 partnership between the companies. Following the sale, LP will become the exclusive distributor of engineered wood products from these operations. The deal is expected to close in the first half of 2022, pending regulatory approvals.
Resolute Forest Products (NYSE: RFP) announced two strategic acquisitions to enhance its wood products business. The company will purchase Louisiana-Pacific's 50% stake in joint ventures producing I-joists for $50 million, increasing control over production and consolidating EBITDA contributions. Additionally, Resolute is acquiring a 34.5-megawatt cogeneration facility in Senneterre, Quebec, to optimize biomass utilization and enhance competitiveness in the region. Both transactions are expected to close in the first half of 2022, subject to regulatory approval.
Resolute Forest Products (NYSE: RFP) will announce its annual financial results on February 3, 2022, at 7:00 a.m. (ET), followed by a conference call at 9:00 a.m. (ET). The public can join the call by dialing 888 550-7724 at least 15 minutes early, with a simultaneous webcast available on their website. Resolute is a leader in the forest products sector, operating around 40 facilities across the U.S. and Canada, and is recognized for its commitment to sustainable practices.
Resolute Forest Products (NYSE: RFP) announced the indefinite idling of its pulp and paper operations at the Calhoun, Tennessee mill, affecting 350 positions. Despite strong market conditions, financial losses have persisted, with a $62 million operating loss reported over the last twelve months. The company expects to improve overall income by $35-$40 million following this decision. This may include non-cash impairment charges of approximately $135 million and cash closure costs near $45 million, primarily in 2022. Tissue manufacturing will continue, and the company is committed to supporting affected employees.
On December 15, 2021, Resolute Forest Products (NYSE: RFP) announced the extension of its senior secured asset-based revolving credit facility for an additional five years. The facility, totaling $450 million, remains undrawn except for $73 million in letters of credit. This extension includes an ESG module aimed at enhancing sustainability initiatives. Company executives highlighted the credit facility's role in supporting growth and transformation goals while securing long-term liquidity under favorable market conditions.
Resolute Forest Products announced a new share repurchase program, authorizing up to $100 million or 10 million shares. This follows the completion of a previous program where 11.5 million shares were repurchased for $78.3 million, equating to 15% of outstanding shares. The company plans to use its liquidity for these transactions, emphasizing a balanced capital allocation approach aimed at enhancing shareholder value. The timing of repurchases is subject to market conditions and regulatory considerations.
Resolute Forest Products reported Q3 2021 net income of $80 million ($0.99 per diluted share), up from $57 million in Q3 2020. Sales reached $817 million, a $87 million increase. The company repurchased 1.2 million shares in Q3 and announced a $1 per share special dividend. However, the wood products segment saw a significant decline, with operating income down $341 million and average transaction prices falling 50%. Adjusted EBITDA for the quarter was $144 million, reflecting mixed performance across segments.
On September 13, 2021, Resolute Forest Products announced Duncan K. Davies as the new non-executive chairman of its board, replacing Bradley P. Martin, who will remain as vice chairman. Davies brings extensive experience in the forest products industry, having served as CEO of Interfor Corporation and Pinnacle Renewable Energy. The appointment aligns with Resolute's strategy to enhance its focus on wood products. The board also clarified that Mr. Davies is independent according to NYSE standards, marking a strategic governance update.
Resolute Forest Products reported a strong Q2 2021, with a net income of $268 million ($3.34 per diluted share), up from $6 million in Q2 2020. Sales surged to $1,140 million, a rise of $528 million year-over-year. Adjusted EBITDA reached $445 million, bolstered by the wood products segment which contributed $415 million. The company reduced net debt to $126 million and declared a special dividend of $79 million. Despite recent declines in lumber prices, management remains optimistic about long-term business fundamentals.
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