Cascades posts record results for the fourth quarter and for 2015

KINGSEY FALLS, QC, March 11, 2016 /CNW Telbec/ - Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue paper products, releases its unaudited financial results for the three-month period and the fiscal year ended December 31, 2015.

Mr. Mario Plourde, President and Chief Executive Officer, had the following comments on the most recent quarterly results: "We concluded  2015 on a strong note with an OIBD of $104 million, the highest ever achieved for a fourth quarter and 27% higher than during the same period last year. For the full year and on a comparable asset base, the OIBD of $426 million represents a record for the Corporation and an increase of 25% compared to 2014. Our free cash flow amounted to $150 million in 2015 and was mostly used to reduce indebtedness. All of our North American groups improved their quarterly results compared to the same period last year due in part to a weaker Canadian dollar. The sequential OIBD decrease is mostly the result of seasonality. The Tissue Papers Group showed the most improvement compared to last year fourth quarter with an OIBD growth of 81% due to increased average selling prices and lower fibre costs. In the Packaging Products sector, both the Containerboard and Specialty Products groups showed solid growth with a 27% and 60% year-over-year quarterly OIBD improvement, respectively. The higher average selling price is the main factor behind this increase in the Containerboard Group and the lower fibre costs in the Specialty Products Group. The Boxboard Europe Group experienced a slight decrease compared to the last quarter of 2014, which is mostly the result of higher fibre costs. Greenpac's contribution to our results is positive since ramp-up was completed in 2014. Earnings per share contribution from our share of its results excluding specific items totaled $0.03 during the quarter."

Annual Highlights

  • Sales of $3,861 million (compared to $3,561 million in 2014 (+8%))
  • Excluding specific items
    • OIBD of $426 million (compared to $340 million in 2014 (+25%))
    • Net earnings per common share of $1.18 (compared to $0.21 in 2014)
    • Greenpac contribution to net earnings per common share: $0.12 (compared to a net loss of $0.03 in 2014)
  • Including specific items
    • OIBD of $343 million (compared to $311 million in 2014 (+10%))
    • Net loss per common share of $0.69 (compared to a net loss of $1.57 in 2014)
  • Exit from the North American boxboard market
  • Senior notes refinancing and amendment to our bank credit facility
  • Net debt to OIBD ratio down from 4.7x to 4.0x

Q4 2015 Highlights and Recent Developments

  • Sales of $975 million (compared to $1,026 million in Q3 2015 (-5%) and $879 million in Q4 2014 (+11%))
  • Excluding specific items
    • OIBD of $104 million (compared to $134 million in Q3 2015 (-22%) and $82 million in Q4 2014 (+27%))
    • Net earnings per common share of $0.23 (compared to $0.52 in Q3 2015 and $0.08 in Q4 2014)
    • Greenpac contribution to net earnings per common share: $0.03 (compared to $0.04 in Q3 2015 and $0.01 in Q4 2014)
  • Including specific items
    • OIBD of $44 million (compared to $122 million in Q3 2015 (-64%) and $57 million in Q4 2014 (-23%))
    • Net loss per common share of $0.81 (compared to net earnings of $0.24 in Q3 2015 and a net loss of $0.51 in Q4 2014)
  • Acquisition of the 27% minority interest of Cascades Recovery for a consideration of $32 million
  • Net debt of $1,721 million (compared to $1,741 million as of September 30, 2015       

Financial Summary

Segmented OIBD excluding specific items 1







(in millions of Canadian dollars) (unaudited)

2015

2014

Q4 2015

Q4 2014

Q3 2015







Packaging Products







Containerboard

231

164

56

44

68


Boxboard Europe

63

72

13

14

14


Specialty Products

58

40

16

10

18





Tissue Papers

119

96

38

21

43





Corporate Activities

(45)

(32)

(19)

(7)

(9)

OIBD excluding specific items

426

340

104

82

134

1 - Refer to "Supplemental Information on Non-IFRS Measures" section.

Selected consolidated information












(in millions of Canadian dollars, except amounts per common share) (unaudited)

2015


2014


Q4 2015


Q4 2014


Q3 2015








Sales

3,861


3,561


975


879


1,026


Excluding specific items1







Operating income before depreciation and amortization (OIBD)

426


340


104


82


134



Operating income

236


166


47


38


89



Net earnings

112


20


22


8


49




per common share

$

1.18


$

0.21


$

0.23


$

0.08


$

0.52



Margin (OIBD)

11.0

%

9.5

%

10.7

%

9.3

%

13.1

%

As reported







Operating income before depreciation and amortization (OIBD)

343


311


44


57


122



Operating income (loss)

153


137


(13)


13


77



Net earnings (loss)

(65)


(147)


(76)


(47)


22




per common share

$

(0.69)


$

(1.57)


$

(0.81)


$

(0.51)


$

0.24


1 - Refer to "Supplemental Information on Non-IFRS Measures" section.

Results Analysis for the Three-Month Period Ended December 31, 2015 (compared to the same period last year)

In comparison with the same period last year, sales increased by 11% to $975 million as we benefited from a weaker Canadian dollar and higher average selling prices in our containerboard and tissue papers activities.

Operating income, excluding specific items, increased from $38 million in the fourth quarter of 2014 to $47 million in the fourth quarter of 2015. The increase is explained by the higher average selling prices in our containerboard and tissue papers activities, weaker Canadian dollar and lower fibre costs. Results of corporate activities were impacted by higher share-based compensation, expenses related to management employment contracts and by start-up costs for our shared services activities. Depreciation and amortization expense is higher due to the exchange rate and the review of estimated useful life of assets that have been or will be removed from service following recent capital investments.

When including specific items, operating loss amounted to $13 million in comparison to operating income of $13 million for the same period of last year, a decrease of $26 million. In the fourth quarter of 2015, the following specific items, before income taxes, impacted our operating income and/or net earnings:

  • a $75 million impairment charge (including $18 million of deferred income tax assets reversal) mainly on the assets of our virgin boxboard mill in France (operating income and net earnings);
  • a $4 million unrealized loss on derivative financial instruments (operating income and net earnings);
  • a $1 million gain related to restructuring provision reversal (operating income and net earnings);
  • a $23 million foreign exchange loss on long-term debt and financial instruments (net earnings);
  • a $3 million loss related to the share of results of associates and joint-ventures (net earnings).

Impairment charge recorded during the fourth quarter on our virgin boxboard mill located in France is the result of a review of its recoverable value due to sustained difficult market conditions and continuous downward pressure on profitability margins.

Net earnings, excluding specific items, amounted to $22 million ($0.23 per common share) in the fourth quarter of 2015 compared to $8 million ($0.08 per common share) for the same period in 2014. Including specific items, net loss amounted to $76 million ($0.81 per common share) in the fourth quarter of 2015 compared to a net loss of $47 million ($0.51 per common share) in the same period in 2014.

Results Analysis for the Three-Month Period Ended December 31, 2015 (compared to the previous quarter)

In comparison to the previous quarter and despite favorable exchange rates, sales decreased by 5% to reach $975 million mainly due to lower seasonal shipments in all of our business segments.

This seasonal decrease in shipments combined with higher shared-based compensation and management employment contracts expenses, start-up costs for our shared services activities and higher depreciation and amortization expense, as explained previously, mostly explain the decrease in operating income, excluding specific items, from $89 million in the third quarter of 2015 to $47 million in the fourth quarter of 2015.

For further details, see the tables on IFRS and non-IFRS measures reconciliation, included herewith.

Near-Term Outlook

In commenting on the outlook, Mr. Plourde added: "2015 was better than the previous year in all respects. Moreover, the favorable environment that contributed to these results still prevails and should allow us to deliver a similar performance during the coming year.

We do not foresee a significant strengthening of the Canadian dollar and we are not expecting major increases in the price of recycled fibres. In addition to this, the decrease in the cost of certain of our inputs such as gas, oil and chemical products remains positive for us. These favorable conditions will allow us to accelerate initiatives to continue improving our asset base. Accordingly, we will slightly increase our capital expenditures this year. In the containerboard and tissue paper markets, we want to expand our converting operations south of the border. It is also our intention to increase our consumer product packaging capacity in the Specialty Products Group. In addition, we will pursue initiatives to improve our internal processes and reinforce our customer-centric approach. Notwithstanding the slight increase in capital expenditures, we will continue to direct a significant portion of our free cash flow to debt reduction."

Dividend on Common Shares

The Board of Directors of Cascades declared a quarterly dividend of $0.04 per common share to be paid April 1, 2016, to shareholders of record at the close of business on March 24, 2016. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada).

Conference Call Information

Management will comment on the 2015 fourth quarter and annual financial results during a conference call to be held today at 10:00 a.m., EST.

Financial analysts, investors, media and other interested individuals are invited to listen to the conference call by dialing 1-866-229-4144 and using the access code 9334723#. The conference call, including the investor presentation, will also be broadcast live on the Cascades corporate website (www.cascades.com, Investors tab on the Home page). The broadcast replay will be available on the Cascades corporate website and by phone until March 24, 2016, by dialing 1-888-843-7419 and using the access code 9334723#.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Corporation employs close to 11,000 employees, who work in more than 90 units located in North America and Europe. With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades continues to serve its clients with innovative products. Cascades' common shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.

Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Corporation's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Corporation's Securities and Exchange Commission filings.

CONSOLIDATED BALANCE SHEETS




(in millions of Canadian dollars) (unaudited)

December 31,
2015

December 31,
2014

Assets



Current assets


Cash and cash equivalents

60

29

Accounts receivable

540

453

Current income tax assets

30

13

Inventories

494

462

Financial assets

1

1

Assets of disposal group classified as held for sale

72


1,125

1,030

Long-term assets


Investments in associates and joint ventures

322

259

Property, plant and equipment

1,608

1,573

Intangible assets with finite useful life

174

183

Financial assets

12

25

Other assets

80

83

Deferred income tax assets

181

185

Goodwill and other intangible assets with indefinite useful life

346

335


3,848

3,673

Liabilities and Equity


Current liabilities


Bank loans and advances

37

46

Trade and other payables

613

557

Current income tax liabilities

1

5

Current portion of long-term debt

34

40

Current portion of provisions for contingencies and charges

5

11

Current portion of financial liabilities and other liabilities

37

16

Liabilities of disposal group classified as held for sale

32


727

707

Long-term liabilities


Long-term debt

1,710

1,556

Provisions for contingencies and charges

34

33

Financial liabilities

47

45

Other liabilities

178

191

Deferred income tax liabilities

189

138


2,885

2,670

Equity attributable to Shareholders


Capital stock

490

483

Contributed surplus

17

18

Retained earnings

387

454

Accumulated other comprehensive loss

(27)

(62)


867

893

Non-controlling interest

96

110

Total equity

963

1,003


3,848

3,673

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)





For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars, except per-common share amounts and number of common shares) (unaudited)

2015

2014

2015

2014

Sales

975

879

3,861

3,561

Cost of sales and expenses




Cost of sales (including depreciation and amortization of $190 million ($57 million in the fourth quarter); 2014 — $174 million ($44 million in the fourth quarter))

826

758

3,261

3,063

Selling and administrative expenses

98

85

360

334

Loss (gain) on acquisitions, disposals and others

5

(1)

Impairment charges and restructuring costs

56

15

66

23

Foreign exchange gain

(1)

(1)

(6)

(2)

Loss on derivative financial instruments

9

4

28

6


988

866

3,708

3,424

Operating income (loss)

(13)

13

153

137

Financing expense

22

23

91

101

Interest expense on employee future benefits

1

1

6

6

Loss on refinancing of long-term debt

19

44

Foreign exchange loss on long-term debt and financial instruments

23

13

91

30

Share of results of associates and joint ventures

(6)

(1)

(37)

Loss before income taxes

(53)

(23)

(17)

(44)

Provision for income taxes

23

2

40

16

Net loss from continuing operations including non-controlling interest for the period

(76)

(25)

(57)

(60)

Net earnings (loss) from discontinued operations

1

(26)

1

(83)

Net loss including non-controlling interest for the period

(75)

(51)

(56)

(143)

Net earnings (loss) attributable to non-controlling interest

1

(4)

9

4

Net loss attributable to Shareholders for the period

(76)

(47)

(65)

(147)

Net loss from continuing operations per common share





Basic and diluted

$

(0.82)

$

(0.23)

$

(0.70)

$

(0.68)

Net loss per common share





Basic and diluted

$

(0.81)

$

(0.51)

$

(0.69)

$

(1.57)

Weighted average basic and diluted number of common shares outstanding

94,690,092

94,079,596

94,384,308

94,025,600





Net loss attributable to Shareholders:





Continuing operations

(77)

(21)

(66)

(64)


Discontinued operations

1

(26)

1

(83)

Net loss

(76)

(47)

(65)

(147)


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)





For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars) (unaudited)

2015

2014

2015

2014

Net loss including non-controlling interest for the period

(75)

(51)

(56)

(143)

Other comprehensive income (loss)




Items that may be reclassified subsequently to earnings





Translation adjustments






Change in foreign currency translation of foreign subsidiaries

30

16

118

37




Change in foreign currency translation related to net investment hedging activities

(23)

(19)

(101)

(44)




Income taxes

3

3

13

6



Cash flow hedges






Change in fair value of foreign exchange forward contracts

1

2

3




Change in fair value of interest rate swaps

2

(3)

12

(13)




Change in fair value of commodity derivative financial instruments

1

(10)

1

(1)




Income taxes

(1)

4

(5)

5


Available-for-sale financial assets

2


12

(8)

42

(7)


Items that are reclassified to retained earnings





Actuarial gain (loss) on post-employment benefit obligations

16

(11)

25

(39)



Income taxes

(4)

3

(7)

11


12

(8)

18

(28)

Other comprehensive income (loss)

24

(16)

60

(35)

Comprehensive loss including non-controlling interest for the period

(51)

(67)

4

(178)

Comprehensive income (loss) attributable to non-controlling interest for the period

2

(7)

16

(3)

Comprehensive loss attributable to Shareholders for the period

(53)

(60)

(12)

(175)

Comprehensive income (loss) attributable to Shareholders:





Continuing operations

(54)

(33)

(13)

(84)



Discontinued operations

1

(27)

1

(91)

Comprehensive loss

(53)

(60)

(12)

(175)



CONSOLIDATED STATEMENTS OF EQUITY




For the year ended December 31, 2015

(in millions of Canadian dollars) (unaudited)

CAPITAL
STOCK

CONTRIBUTED
SURPLUS

RETAINED
EARNINGS

ACCUMULATED
OTHER
COMPREHENSIVE
LOSS

TOTAL EQUITY
ATTRIBUTABLE TO
SHAREHOLDERS

NON-CONTROLLING
INTEREST

TOTAL
EQUITY

Balance - Beginning of year

483

18

454

(62)

893

110

1,003

Comprehensive income (loss)






Net earnings (loss)

(65)

(65)

9

(56)


Other comprehensive income

18

35

53

7

60



(47)

35

(12)

16

4

Dividends

(15)

(15)

(15)

Stock options

2

(1)

1

1

Issuance of common shares

5

5

5

Acquisition of non-controlling interest

(5)

(5)

(30)

(35)

Balance - End of year

490

17

387

(27)

867

96

963


For the year ended December 31, 2014

(in millions of Canadian dollars) (unaudited)

CAPITAL
STOCK

CONTRIBUTED
SURPLUS

RETAINED
EARNINGS

ACCUMULATED
OTHER
COMPREHENSIVE
LOSS

TOTAL EQUITY
ATTRIBUTABLE TO
SHAREHOLDERS

NON-CONTROLLING
INTEREST

TOTAL
EQUITY

Balance - Beginning of year

482

17

642

(60)

1,081

113

1,194

Comprehensive loss






Net earnings (loss)

(147)

(147)

4

(143)


Other comprehensive loss

(26)

(2)

(28)

(7)

(35)



(173)

(2)

(175)

(3)

(178)

Dividends

(15)

(15)

(15)

Stock options

1

1

1

Issuance of common shares

1

1

1

Balance - End of year

483

18

454

(62)

893

110

1,003


CONSOLIDATED STATEMENTS OF CASH FLOWS





For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars) (unaudited)

2015

2014

2015

2014

Operating activities from continuing operations





Net loss attributable to Shareholders for the period

(76)

(47)

(65)

(147)

Net loss (earnings) from discontinued operations

(1)

26

(1)

83

Net loss from continuing operations

(77)

(21)

(66)

(64)

Adjustments for:




Financing expense and interest expense on employee future benefits

23

24

97

107


Loss on refinancing of long-term debt

19

44


Depreciation and amortization

57

44

190

174


Loss (gain) on acquisitions, disposals and others

5

(1)


Impairment charges and restructuring costs

57

13

64

21


Unrealized loss on derivative financial instruments

4

5

18

6


Foreign exchange loss on long-term debt and financial instruments

23

13

91

30


Provision for income taxes

23

2

40

16


Share of results of associates and joint ventures

(6)

(1)

(37)


Net earnings (loss) attributable to non-controlling interest

1

(4)

9

4


Net financing expense paid

(4)

(4)

(89)

(73)


Premium paid on long-term debt refinancing

(13)

(31)


Net income taxes received (paid)

(4)

(7)

(14)

14


Dividend received

6

6

17

15


Employee future benefits and others

4

(4)

(3)

(19)


107

71

322

244

Changes in non-cash working capital components

30

44

(38)

(13)


137

115

284

231

Investing activities from continuing operations



Investments in associates and joint ventures

(2)

(2)

Payments for property, plant and equipment

(50)

(55)

(163)

(178)

Proceeds on disposals of property, plant and equipment

1

1

4

7

Change in intangible and other assets

13

8

(2)


(38)

(54)

(153)

(173)

Financing activities from continuing operations



Bank loans and advances

4

(7)

(14)

(3)

Change in revolving credit facilities

(91)

(42)

(120)

(154)

Issuance of senior notes, net of related expenses

300

833

Repayment of senior notes

(305)

(740)

Increase in other long-term debt

30

1

73

23

Payments of other long-term debt

(10)

(19)

(48)

(50)

Issuance of common shares

4

5

1

Acquisition of non-controlling interest

(3)

(5)

Dividends paid to the Corporation's Shareholders

(4)

(4)

(15)

(15)


(70)

(71)

(129)

(105)

Change in cash and cash equivalents during the period from continuing operations

29

(10)

2

(47)

Change in cash and cash equivalents during the period from discontinued operations

(3)

9

30

54

Net change in cash and cash equivalents during the period

26

(1)

32

7

Currency translation on cash and cash equivalents

(1)

(1)

Cash and cash equivalents - Beginning of the period

34

30

29

23

Cash and cash equivalents - End of the period

60

29

60

29

SEGMENTED INFORMATION

The Corporation analyzes the performance of its operating segments based on their operating income before depreciation and amortization, which is not a measure of performance under International Financial Reporting Standards ("IFRS"); however, the chief operating decision-maker ("CODM") uses this performance measure to assess the operating performance of each reportable segment. Earnings for each segment are prepared on the same basis as those of the Corporation. Intersegment operations are recorded on the same basis as sales to third parties, which are at fair market value. The accounting policies of the reportable segments are the same as the Corporation's accounting policies described in its most recent audited consolidated financial statements for the year ended December 31, 2014.

The Corporation's operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The Chief Executive Officer has authority for resource allocation and assessment of the Corporation's performance, and is therefore the CODM.

The Corporation's operations are managed in four segments: Containerboard, Boxboard Europe, Specialty Products (which together constitute the Packaging Products of the Corporation) and Tissue Papers.



SALES


For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars) (unaudited)

2015

2014

2015

2014

Packaging Products




Containerboard

326

295

1,301

1,181


Boxboard Europe

202

196

825

841


Specialty Products

147

137

579

568


Intersegment sales

(15)

(13)

(55)

(49)


660

615

2,650

2,541

Tissue Papers

322

270

1,236

1,054

Intersegment sales and others

(7)

(6)

(25)

(34)


975

879

3,861

3,561






OPERATING INCOME (LOSS)
BEFORE DEPRECIATION AND AMORTIZATION (OIBD)


For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars) (unaudited)

2015

2014

2015

2014

Packaging Products




Containerboard

55

38

233

164


Boxboard Europe

(42)

6

6

64


Specialty Products

16

4

52

26


29

48

291

254

Tissue Papers

38

20

119

95

Corporate

(23)

(11)

(67)

(38)

Operating income before depreciation and amortization

44

57

343

311

Depreciation and amortization

(57)

(44)

(190)

(174)

Financing expense and interest expense on employee future benefits

(23)

(24)

(97)

(107)

Loss on refinancing of long-term debt

(19)

(44)

Foreign exchange loss on long-term debt and financial instruments

(23)

(13)

(91)

(30)

Share of results of associates and joint ventures

6

1

37

Loss before income taxes

(53)

(23)

(17)

(44)






PAYMENTS FOR PROPERTY, PLANT AND EQUIPMENT


For the 3-month periods ended
December 31,

For the years ended
December 31,

(in millions of Canadian dollars) (unaudited)

2015

2014

2015

2014

Packaging Products






Containerboard

34

12

64

32


Boxboard Europe

11

4

23

33


Specialty Products

5

9

14

18


50

25

101

83

Tissue Papers

10

31

57

88

Corporate

3

2

7

8

Total acquisitions

63

58

165

179

Proceeds on disposals of property, plant and equipment

(1)

(1)

(4)

(7)

Capital-lease acquisitions and included in other debts

(2)

(2)

(3)

(14)


60

55

158

158

Acquisitions of property, plant and equipment included in ''Trade and other payables''




Beginning of the period

8

19

20

33


End of the period

(19)

(20)

(19)

(20)

Payments for property, plant and equipment net of proceeds on disposals

49

54

159

171

SUPPLEMENTAL INFORMATION ON NON-IFRS MEASURES

Operating income before depreciation and amortization, earnings before interest, income taxes, depreciation and amortization and operating income are not measures of performance under IFRS. The Corporation includes operating income before depreciation and amortization, earnings before interest, taxes, depreciation and amortization and operating income because they are measures used by management to assess the operating and financial performance of the Corporation's operating segments. Additionally, the Corporation believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interest, taxes, depreciation and amortization and operating income do not represent, and should not be used as a substitute for, net earnings or cash flows from operating activities as determined in accordance with IFRS, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interest, taxes, depreciation and amortization and operating income may differ from those of other companies.

Operating income before depreciation and amortization excluding specific items, earnings before interest, income taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items and net earnings per common share excluding specific items are non-IFRS measures. The Corporation believes that it is useful for investors to be aware of specific items that have adversely or positively affected its IFRS measures, and that the above mentioned non-IFRS measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Corporation's measures excluding specific items have no standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.

The specific items excluded from OIBD, operating income, financing expense, net earnings and cash flow from operations mainly include charges for (reversals of) impairment of assets, charges for facility or machine closures, accelerated depreciation of assets due to restructuring measures, debt restructuring charges, gains or losses on the acquisition or sale of a business unit, discontinued operations, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate swaps, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature. Although we consider these items to be non-recurring and less relevant to evaluating our performance, some of them might take place in the future and will reduce the cash available to us.

The following table reconciles net earnings (loss) and net earnings (loss) per common share with net earnings excluding specific items and net earnings per common share excluding specific items:





(in millions of Canadian dollars, except amounts per common share) (unaudited)

Net earnings (loss)


Net earnings (loss) per common share1


2015

2014

Q4 2015

Q4 2014

Q3 2015


2015

2014

Q4 2015

Q4 2014

Q3 2015













As per IFRS

(65)

(147)

(76)

(47)

22


$

(0.69)

$

(1.57)

$

(0.81)

$

(0.51)

$

0.24

Specific items:









Loss (gain) on acquisitions, disposals and others

(1)

5

(1)


$

(0.01)

$

0.04

$

(0.01)

Impairment charges

69

21

57

13

11


$

0.67

$

0.13

$

0.59

$

0.07

$

0.08

Restructuring costs (gain)

(3)

2

(1)

2

(5)


$

(0.03)

$

0.02

$

(0.01)

$

0.02

$

(0.04)

Unrealized loss on financial instruments

18

6

4

5

7


$

0.14

$

0.05

$

0.03

$

0.04

$

0.05

Loss on refinancing of long-term debt

19

44


$

0.15

$

0.35

Unrealized loss on interest rates swaps

1

1


$

0.01

$

0.01

Foreign exchange loss on long-term debt and financial instruments

91

30

23

13

36


$

0.83

$

0.28

$

0.20

$

0.13

$

0.34

Share of results of associates and joint ventures

(9)

2

3

2

(17)


$

(0.07)

$

0.01

$

0.03

$

0.01

$

(0.15)

Included in discontinued operations, net of tax

(2)

87

25


$

(0.02)

$

0.94

$

0.28

Tax effect on specific items, other tax adjustments and attributable to non-controlling interest1

(6)

(25)

12

(10)

(5)


$

0.20

$

0.20


177

167

98

55

27


$

1.87

$

1.78

$

1.04

$

0.59

$

0.28

Excluding specific items

112

20

22

8

49


$

1.18

$

0.21

$

0.23

$

0.08

$

0.52

Note 1 : Specific amounts per common share are calculated on an after-tax basis and net of the portion attributable to non-controlling interest.

Net earnings (loss), which is a performance measure defined by IFRS, is reconciled below with operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interest, income taxes, depreciation and amortization excluding specific items:







(in millions of Canadian dollars) (unaudited)

2015

2014

Q4 2015

Q4 2014

Q3 2015





Net earnings (loss) attributable to Shareholders for the period

(65)

(147)

(76)

(47)

22

Net earnings (loss) attributable to non-controlling interest

9

4

1

(4)

4

Net loss (earnings) from discontinued operations for the period

(1)

83

(1)

26

Provision for income taxes

40

16

23

2

13

Share of results of associates and joint ventures

(37)

(6)

(1)

(22)

Foreign exchange loss on long-term debt and financial instruments

91

30

23

13

36

Financing expense, interest expense on employee future benefits and loss on refinancing of long-term debt

116

151

23

24

24

Operating income (loss)

153

137

(13)

13

77

Specific items:





Loss (gain) on acquisitions, disposals and others

(1)

5

(1)


Impairment charges

69

21

57

13

11


Restructuring costs (gain)

(3)

2

(1)

2

(5)


Unrealized loss on financial instruments

18

6

4

5

7


83

29

60

25

12

Operating income - excluding specific items

236

166

47

38

89

Depreciation and amortization

190

174

57

44

45

Operating income before depreciation and amortization - excluding specific items

426

340

104

82

134

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SOURCE Cascades Inc.

For further information: Media: Hugo D'Amours, Vice-President, Communications and Public Affairs, 819-363-5184; Investors: Allan Hogg, Vice-President and Chief Financial Officer, 819-363-5143; Source: Allan Hogg, Vice-President and Chief Financial Officer

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