Q1 2024 Highlights
*Sales of $1,109 million (compared with $1,138 million in Q4 2023 and $1,134 million in Q1 2023);
*Operating income of $9 million (compared with operating loss of $(24) million in Q4 2023 and operating loss of $(80) million in Q1 2023);
*Net loss per common share of ($0.20) (compared with ($0.57) in Q4 2023 and ($0.75) in Q1 2023);
*Net debt1 of $2,020 million as of March 31, 2024 (compared with $1,882 million as of December 31, 2023). Net debt to EBITDA (A) ratio1 of 3.8x, up from 3.4x as of December 31, 2023;
*On April 12, 2024, the Corporation entered into a $175 million delayed draw unsecured term loan credit facility to manage upcoming maturities;
*Total capital expenditures, net of disposals, of $41 million in Q1 2024, compared to $46 million in Q4 2023 and $137 million in Q1 2023. The Corporation’s 2024 forecasted net capital expenditures of approximately $175 million is unchanged.
Mario Plourde, President and CEO, commented: “First quarter 2024 results met expectations, considering the context of elevated raw material prices, and ongoing inflationary pressure on operational costs. Sequentially, Tissue Papers executed well, with increased average selling prices partially offsetting the impacts from higher maintenance costs and softer seasonal volumes. Results in Containerboard decreased from the previous quarter, as spreads remained under pressure due to cost headwinds, most noticeably in raw materials and energy, and lower selling prices prior to the implementation of published index price increases effective in the second quarter. The softer results similarly reflect costs associated with the Trenton mill, which ceased operations at the end of January prior to its permanent closure at the end of February. Conversely, Specialty Products had a solid quarter, driven by favourable sequential raw material and selling prices, and operational cost benefits reflecting efficiency and productivity initiatives. Lower consolidated profitability levels, higher seasonal working capital requirements and a less favourable exchange rate during the quarter resulted in our leverage ratio1 increasing to 3.8x from 3.4x at the end of 2023.”
details at: https://www.newswire.ca/news-releases/cascades-reports-results-for-the-first-quarter-of-2024-822803884.html