Resolute Reports Preliminary Third Quarter 2020 Results

*Q3 GAAP net income of $57 million / $0.66 per diluted share
*Adjusted EBITDA of $140 million
*Net debt down to $541 million / liquidity strengthened to $477 million at quarter-end
*$38 million YTD EBITDA contribution from our recently acquired U.S. sawmills
*Remi G. Lalonde to succeed Yves Laflamme as president and CEO as of March 1

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today reported net income for the quarter ended September 30, 2020, of $57 million, or $0.66 per diluted share, compared to a net loss of $43 million, or $0.47 per share, in the same period in 2019. Sales were $730 million in the quarter, an increase of $25 million from the year-ago period. Excluding special items, the company reported net income of $62 million, or $0.72 per diluted share, compared to a net loss of $34 million, or $0.37 per share, in the third quarter of 2019.

“We took advantage of the rally in lumber prices to further deleverage the balance sheet and drive shareholder value by opportunistically repurchasing 5% of outstanding shares,” said Yves Laflamme, president and chief executive officer. “While the pulp and paper segments continue to suffer from pandemic economics, we used part of the cash we generated with our lumber business to fully repay all revolving borrowings under our credit facilities, except for the low-interest term loan used to finance the acquisition of the U.S. sawmills, which have generated $38 million of EBITDA under our ownership this year. The tissue business is also picking up steam: with $6 million of EBITDA in the quarter, it has generated $19 million of EBITDA in the last twelve months.”

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

Resolute also today announced the selection and appointment of Remi G. Lalonde as the company’s next president and chief executive officer, and a member of the board of directors, succeeding Yves Laflamme, as of March 1, 2021.

The company reported operating income of $97 million in the quarter, compared to $6 million in the second quarter. The $91 million improvement over the previous quarter reflects the favorable impact of higher lumber pricing ($117 million), offset by higher stumpage fees with the increase in lumber pricing ($5 million) and lower market pulp prices ($7 million).
details at: https://resolutefp.mediaroom.com/2020-11-05-Resolute-Reports-Preliminary-Third-Quarter-2020-Results

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