Resolute Reports Preliminary First Quarter 2022 Results

US $
Q1 GAAP net income of $210 million / $2.68 per diluted share
Adjusted EBITDA of $270 million
Net debt at $140 million / liquidity at $1.1 billion at quarter-end
Acquisition of remaining 50% equity interest in Resolute-LP engineered wood partnership and Abitibi cogeneration facility
Achieved 30% GHG emissions reduction target compared to 2015 levels

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today reported net income for the quarter ended March 31 of $210 million, or $2.68 per diluted share, compared to net income of $87 million, or $1.06 per diluted share, in the same period in 2021. Sales were $945 million in the quarter, an increase of $72 million from the year-ago period. Excluding special items, the company reported net income of $177 million, or $2.26 per diluted share, compared to net income of $119 million, or $1.45 per diluted share, in the first quarter of 2021.

“We further strengthened the balance sheet with significant cash generation and improved the competitiveness of our business with two tuck-in acquisitions,” said Remi G. Lalonde, president and chief executive officer. “Our earnings and cash position reflect favorable pricing momentum in all of our segments, but the transportation network improvements were slower than expected, which led to lower sales volume and higher inventory levels. With our strong balance sheet and liquidity well over $1 billion, we benefit from enhanced flexibility to generate long-term value for shareholders and to drive sustainable economic activity in the communities where we operate.”

Mr. Lalonde added: “I am also pleased to confirm we surpassed our 30% absolute greenhouse gas emissions (scope 1 and 2) reduction target, cutting them by 34% compared to 2015 levels.”

Non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are explained and reconciled below.

Consolidated
The company reported operating income of $235 million in the quarter, compared to an operating loss of $101 million in the fourth quarter. The improvement reflects higher selling prices in all segments ($206 million) and the net favorable impact of the indefinite idling of pulp and paper operations at the Calhoun (Tennessee) mill ($7 million). This was partially offset by lower shipments as a result of logistics constraints ($29 million), as well as higher fiber ($25 million) and freight expenses ($8 million). The company recorded lower selling, general and administrative expenses ($7 million), mainly due to lower share-based compensation expenses in the quarter. The prior quarter results were unfavorably affected by charges related to the indefinite idling of pulp and paper operations at the Calhoun mill ($171 million).
https://resolutefp.mediaroom.com/2022-05-05-Resolute-Reports-Preliminary-First-Quarter-2022-Results

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