Positive containerboard industry dynamics support optimistic outlook from Cascades

Kingsey Falls, Quebec-based Cascades Inc. has reported strong results for Q4 2020, and the company's third consecutive annual record levels of sales and adjusted OIBD. 

Q4 2020 Highlights

• Sales of $1,284 million (compared with $1,275 million in Q3 2020 (+1%) and $1,227 million in Q4 2019 (+5%));

o Operating income of $109 million (compared with $73 million in Q3 2020 (+49%) and operating loss of $(1) million in Q4 2019);

o Operating income before depreciation and amortization (OIBD) of $181 million (compared with $154 million in Q3 2020 (+18%) and $76 million in Q4 2019 (+138%));

o Operating income of $94 million (compared with $81 million in Q3 2020 (+16%) and $75 million in Q4 2019 (+25%)) 

o OIBD of $166 million (compared with $162 million in Q3 2020 (+2%) and $152 million in Q4 2019 (+9%))

2020 Annual Highlights
• Sales of $5,157 million (compared with  $4,996 million in 2019 (+3%)); 

o Operating income of $366 million (compared with $261 million in 20192 (+40%))
o Operating income before depreciation and amortization (OIBD) of $665 million (compared with $550 million in 20192 (+21%)) 
o Net earnings per share of $2.04 
• Adjusted (excluding specific items)1   
o Operating income of $376 million (compared with $315 million in 2019 (+19%)) 
o OIBD of $675 million (compared with $604 million in 2019 (+12%))
o Net earnings per share of $1.95 (compared with $1.02 in 2019) 

• Net debt of $1,679 million as at December 31, 2020 (compared with $1,982 million as at September 30, 2020) reflecting solid cash flow from operations, the $125 million equity offering and appreciation of the Canadian dollar. 
• Adjusted free cash flow of $285 million, or $2.97 per share, in 2020, compared to $107 million, or $1.14 per share, in 2019.

• Total capital expenditures paid, net of disposals, of $195 million in 2020, compared to $231 million in 2019; Forecasted 2021 capital expenditures of between $450 million and $475 million include $250 million envelope for the Bear Island containerboard conversion project in Virginia, USA.

• Announced planned progressive and permanent closure of tissue operations at the Laval plant, located in Québec, in June 2021, and that Tissue operations in Pennsylvania ceased in December 2020.

• Reno De Medici S.p.A. (Boxboard Europe) announced the signature of a put option for the sale of its French subsidiary, which produces virgin fiber-based boxboard, in February 2021. The transaction is expected to close at the end of the second quarter of 2021.