MISSISSAUGA, ONTARIO
--(Marketwired - March 10, 2016) -
KP Tissue Inc. ("KPT") (TSX:KPT) reports the Q4 and full year 2015 financial and operational results of
KPT and
Kruger Products L.P. (KPLP). Kruger Products is
Canada's
leading manufacturer of quality tissue products for the Consumer market (Cashmere(R), Purex(R), SpongeTowels(R), Scotties(R), and White Swan(R)) and the Away-From-Home market, and continues to grow in the
U.S.
Consumer tissue business with the White Cloud(R) brand and premium private label products. KPT currently holds a 16.3% interest in KPLP.
KPLP Q4 2015 Business and Financial Highlights
-- Revenue increased by 7.9% to $300.6 million in Q4 2015 compared to Q4
2014
-- Adjusted EBITDA was $30.3 million in Q4 2015, consistent with Q4 2014
despite significant cost pressures
-- TAD Product Q4 2015 Adjusted EBITDA increased by $4.1 million year-over-
year to $13.2 million
-- #1 market share leader in
Canada
with Q4 growth
-- Declared a quarterly dividend of $0.18 per share to be paid on April 15,
2016
KPLP Full Year 2015 Business and Financial Highlights
-- Revenue increased by 8.9% to $1,138.9 million in 2015 compared to
$1,046.2 million in 2014
-- Adjusted EBITDA of $126.4 million in 2015, up from $121.6 million in
2014
-- TAD Product 2015 Adjusted EBITDA increased by $18.4 million year-over-
year to $45.3 million
-- Redeemed $175 million of senior notes by increasing existing credit
facility to $300 million, resulting in interest expense savings of
approximately $8 million annually at expected interest rates
"In Fiscal 2015, the solid performance of our
U.S.
Business combined with cost reduction initiatives, was masked by the significant negative impact of the lower Canadian dollar. This is reflected in higher commodity prices which impacted our Canadian business results," said
Mario Gosselin, CEO of
KP Tissue and
Kruger Products L.P."
"We are pleased with the progress of our TAD Products for their third full year of commercialization considering Adjusted EBITDA of $45 million. We remain confident that North American industry demand will absorb incremental capacity in upcoming years and provide us with solid growth opportunities in the private label market.
"The Away-from-Home segment reported a solid Adjusted EBITDA improvement over the prior year reflecting improved volume in the base business combined with cost reduction initiatives and also benefits from the Metro Paper acquisition.
"From a market share perspective in the Canadian Consumer segment, we maintained our momentum and continued to be the clear overall industry leader. Despite efforts to mitigate higher input costs, the pressure exercised by the weak Canadian dollar on commodity prices has had a significant and increasing negative impact on our Adjusted EBITDA over the past several quarters. In the context of a competitive and price sensitive environment, we recently announced a price increase effective at the end of April 2016 to our Canadian retailers to partially offset the rise of raw material prices.
"We expect first quarter Adjusted EBITDA for Fiscal 2016 to be below the same quarter last year, reflecting the ongoing impact of the weak Canadian dollar. In 2016, we plan to significantly invest in our operations to improve manufacturing costs with CAPEX in the range of $65-$70 million. Despite some important headwinds, we have an action plan in place to improve manufacturing costs and support growth opportunities," concluded Mr. Gosselin.
KPLP Q4 2015 Financial Results
Revenue in Q4 2015 was $300.6 million, compared to $278.6 million in Q4 2014, an increase of $22.0 million or 7.9%. The increase in revenue was primarily due to additional sales volume in the
U.S
consumer business from our TAD products and organic growth in the Away-From-Home (AFH) business. In addition,
U.S.
sales were favourably impacted by foreign exchange.
Cost of sales in Q4 2015 increased to $259.8 million compared to $234.0 million in Q4 2014 primarily due to the negative impact of foreign exchange, slightly offset by a decline in USD pulp and natural gas prices. Freight and warehousing costs increased due to higher sales volumes and inventory levels. Cost reduction initiatives partially offset the above increases in cost of sales. As a percentage of revenue, cost of sales were 86.4% in Q4 2015 compared to 84.0% in Q4 2014.
Selling, general and administrative (SG&A) expenses in Q4 2015 were $23.5 million, compared to $24.5 million in Q4 2014 primarily due to lower advertising & promotion and selling expenses and the benefit of cost reduction initiatives, partially offset by higher selling expenses resulting from increased sales volume and the unfavourable impact of foreign exchange. As a percentage of revenue, SG&A expenses were 7.8% in Q4 2015 compared to 8.8% in Q4 2014.
Adjusted EBITDA in Q4 2015 was $30.3 million compared to $30.4 million in Q4 2014 as the net unfavourable impact of foreign exchange and higher warehousing costs were almost offset by the positive impact of higher sales volumes and lower SG&A. TAD Product EBITDA increased to $13.2 million in Q4 2015 from $9.1 million in Q4 2014 due to increased sales volume, favourable foreign exchange and the continued ramp-up in manufacturing efficiencies.
Net income in Q4 2015 was a loss of $0.5 million, compared to income of $0.1 million in Q4 2014. The decrease was primarily due to a change in the tax expense of $5.9 million resulting from a $5.5 million reversal of previously recognized deferred tax assets in our
U.S.
subsidiary, higher depreciation expense of
$2.0 million and restructuring costs of
$0.9 million, partially offset by the change in the amortized costs of the Partnership unit liability of
$8.9 million.
The cash balance as of December 31, 2015 was $25.5 million compared to $38.5 million as of September 27, 2015. Cash generated from operating activities resulting from Adjusted EBITDA in Q4 2015 was more than offset by higher working capital, pension funding, capital spending and interest payments in the quarter.
KPLP 2015 Financial Results
Revenue was $1,138.9 million in Fiscal 2015 compared to $1,046.2 million in Fiscal 2014, an increase of 8.9% or $92.7 million. The increase in revenue was primarily due to additional sales volume across all regions and in both the Consumer and AFH segments, including a significant increase in AFH segment revenue resulting from the acquisition of Metro Paper. In the Consumer and AFH
U.S.
businesses, sales were favourably impacted by foreign exchange on
U.S.
dollar sales.
Adjusted EBITDA was $126.4 million in Fiscal 2015 compared to $121.6 million in Fiscal 2014. Higher sales volumes in both the Consumer and AFH segments, lower costs (in
U.S.
dollars) for pulp and natural gas and cost reduction initiatives were partially offset by higher SG&A from increased sales and the net negative impact of foreign exchange. TAD Product Adjusted EBITDA was
$45.3 million in Fiscal 2015 compared to
$26.9 million in Fiscal 2014.
Net income was $1.5 million in Fiscal 2015 compared to $21.1 million in Fiscal 2014. The decrease in net income was primarily due to increases in interest and tax expense of $13.5 million and $9.2 million, respectively, the Q2 pension revaluation related to past service costs of $3.4 million, an increase in the unrealized foreign exchange loss of $3.4 million, and higher depreciation expense of $4.9 million. These increases were partially offset by higher Adjusted EBITDA of $4.8 million.
KPT Q4 2015 Financial Results
KPT incurred a net loss of $27.8 million in Q4 2015. Included in the net loss was $0.1 million representing KPT's share of KPLP's loss. The loss was increased by the net of depreciation expense of $1.4 million related to adjustments to carrying amounts on acquisition, partially offset by an income tax recovery of $1.8 million.
Also included in the loss was an impairment of KPT's investment in KPLP of $28.0 million. KPT performed an impairment test at December 31, 2015 as a result of the market value decline in KPT's publicly traded common shares during Fiscal 2015.
KPT 2015 Financial Results
KPT incurred a net loss of $31.3 million in 2015. Included in the net loss was $0.2 million representing KPT's share of KPLP's income. The income was reduced by the net of depreciation expense of $5.7 million related to adjustments to carrying amounts on acquisition, partially offset by an income tax recovery of $2.1 million.
Amendment to Senior Credit Facility
Subsequent to the year-end, an amendment was obtained under the Senior Credit Facility to increase the Ratio of Funded Debt to EBITDA covenant for the entire 2016 fiscal year, which is expected to allow for the impact of foreign exchange fluctuations and the implementation of a significantly expanded 2016 capital spending program.
Dividends on Common Shares
The Board of Directors of KP Tissue Inc. declared a quarterly dividend of $0.18 per share to be paid on April 15, 2016 to shareholders of record at the close of business on March 31, 2016.
Additional Information
For additional information please refer to Management's Discussion and Analysis ("MD&A") of KPT and KPLP for the fourth quarter and year ended December 31, 2015 available on SEDAR at www.sedar.com or our website at www.kptissueinc.com.
Fourth Quarter Results Conference Call Information
KPT will hold its fourth quarter conference call on Thursday, March 10, 2016 at 8:30 a.m. Eastern Time.
Via telephone: 1-877-223-4471 or 647-788-4922
Via the internet at: www.kptissueinc.com
Presentation material referenced during the conference call will be available at www.kptissueinc.com.
A rebroadcast of the conference call will be available until midnight, April 9, 2016 by dialing 800-585-8367 or 416-621-4642 and entering passcode 40967664.
About KP Tissue Inc. (KPT)
KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 16.3% interest in KPLP. For more information visit www.kptissueinc.com.
About Kruger Products L.P. (KPLP)
KPLP is
Canada's
leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere(R), Purex(R), SpongeTowels(R), Scotties(R)' and White Swan(R). In the
U.S.
, KPLP manufactures the White Cloud(R) brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees across
North America
and operates five FSC(R) CoC- certified mills (FSC(R) C104904), four of which are located in
Canada
and one in the US. For more information visit
www.krugerproducts.ca.
Non-IFRS Measures
This press release uses certain non-IFRS financial measures and ratios which KPLP believes provide useful information to both management of KPLP and the readers of the financial information in measuring the financial performance and financial condition of KPLP. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. Examples of such measures are Adjusted EBITDA and TAD Product Adjusted EBITDA. Beginning with Q4 2015 in accordance with Canadian Securities Administrators Staff Notice 52-306 (Revised), we reference Adjusted EBITDA and TAD Product Adjusted EBITDA as non-IFRS financial measures. These terms replace the previously referenced non-IFRS financial measures EBITDA and TAD Product EBITDA. Our definition of Adjusted EBITDA and TAD Product Adjusted EBITDA are unchanged from our former definition of EBITDA and TAD Product EBITDA respectively. Accordingly, this change in terminology has no impact on our reported financial results for prior periods. Adjusted EBITDA and TAD Product Adjusted EBITDA are not measurements of operating performance computed in accordance with IFRS and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with IFRS. "Adjusted EBITDA" is calculated by KPLP as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) impairment of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) unrealized foreign exchange loss (gain), (viii) one-time costs related to restructuring activities, (ix) change in the amortized cost of the Partnership unit liability, and (x) one-time costs due to pension revaluations related to past service. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the Management's Discussion and Analysis ("MD&A") of KPT and KPLP for the fourth quarter ended December 31, 2015 available on SEDAR at www.sedar.com. "TAD Product Adjusted EBITDA" represents the portion of KTG Adjusted EBITDA generated by the sale of TAD products.
Forward-Looking Statements
Certain statements in this press release about KPT's and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT, including expectations and assumptions concerning the impact of the TAD Project on Adjusted EBITDA, the expectation of continued growth in sales of TAD products in the
U.S.
and stable interest rates. Although KPT believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.
The outlook provided in respect of Adjusted EBITDA for Q1 2016 is forward-looking information and is subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management's expectations, at the date of this press release, regarding KPLP's future financial performance. Readers are cautioned that this information may not be appropriate for other purposes.
Many factors could cause KPLP's actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from the Corporation's economic interest in KPLP) to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors - Risks Related to KPLP's Business" section of the KPT Annual Information Form dated March 10, 2016 available on SEDAR at www.sedar.com: Kruger Inc.'s influence over KPLP; KPLP's reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD Project; operational risks; Gatineau Plant land lease; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP's inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP's brands; KPLP's sales being less than anticipated; KPLP's failure to implement its business and operating strategies; KPLP's obligation to make regular capital expenditures; KPLP's entering into unsuccessful acquisitions; KPLP's dependence on key personnel; KPLP's inability to retain its existing customers or obtain new customers; KPLP's loss of key suppliers; KPLP's failure to adequately protect its intellectual property rights; KPLP's reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP's cash flow; KPLP's pension obligations are significant and can be materially higher than predicted if KPLP Management's underlying assumptions are incorrect; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and
U.S.
competitors; KPLP's inability to service all of its indebtedness; exposure to potential consumer product liability, restrictive covenants; interest rate and refinancing risk; information technology and innovation; insurance; and internal controls.
Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
Kruger Products L.P.
Consolidated Statement of Financial Position
(thousands of Canadian dollars)
December 31, December 31,
2015 2014
$ $
------------------------------
Assets
Current assets
Cash and cash equivalents 25,455 51,788
Trade and other receivables 108,720 107,092
Receivables from related parties 185 301
Current portion of advances to partners 2,630 3,474
Inventories 184,985 150,328
Income tax recoverable 772 1,302
Prepaid expenses and other current assets 8,429 7,351
------------------------------
331,176 321,636
Non-current assets
Advances to partners 4,234 -
Property, plant & equipment 737,708 652,762
Other long-term assets 8,107 7,738
Goodwill 160,939 160,939
Intangible assets 15,853 14,052
Deferred income taxes 39,411 34,874
------------------------------
Total assets 1,297,428 1,192,001
------------------------------
------------------------------
Liabilities
Current liabilities
Trade and other payables 180,329 173,228
Payables to related parties 3,775 4,387
Distributions payable 9,871 9,781
Current portion of provisions 3,096 2,967
Current portion of long-term debt 10,183 8,879
------------------------------
207,254 199,242
Non-current liabilities
Long-term debt 425,859 358,646
Other long-term liabilities 48 156
Provisions 6,180 6,441
Pensions 87,164 98,533
Post-retirement benefits 57,346 53,357
------------------------------
Liabilities to non-unitholders 783,851 716,375
Current portion of Partnership units
liability 2,630 6,949
Long-term portion of Partnership units
liability 122,546 121,174
------------------------------
Total Partnership units liability 125,176 128,123
------------------------------
Total liabilities 909,027 844,498
------------------------------
Equity
Partnership units 318,012 299,616
Retained earnings (deficit) (29,416) 4,424
Accumulated other comprehensive income 99,805 43,463
------------------------------
Total equity 388,401 347,503
------------------------------
Total equity and liabilities 1,297,428 1,192,001
------------------------------
------------------------------
Kruger Products L.P.
Consolidated Statement of Comprehensive Income
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
$ $ $ $
-----------------------------------------------------
Revenue 300,583 278,647 1,138,870 1,046,168
Expenses
Cost of sales 259,842 234,002 970,759 879,139
Selling, general and
administrative
expenses 23,452 24,500 87,978 82,625
Gain on sale of non-
financial assets 12 - (1,119) -
Restructuring costs 989 - 2,824 2,835
-----------------------------------------------------
Operating income 16,288 20,145 78,428 81,569
Interest expense 10,095 9,807 58,164 44,730
Other expense 561 9,990 11,331 17,612
-----------------------------------------------------
Income before income
taxes 5,632 348 8,933 19,227
Income taxes 6,157 278 7,439 (1,840)
-----------------------------------------------------
Net income (loss) for
the period (525) 70 1,494 21,067
-----------------------------------------------------
Other comprehensive
income (loss)
Items that will not be
reclassified to net
income:
Remeasurements of
pensions 11,217 5,822 7,094 (25,689)
Remeasurements of
post-retirement
benefits (1,965) 45 (2,667) (3,466)
Items that may be
subsequently
reclassified to net
income:
Available-for-sale
investment 513 336 207 15
Cumulative translation
adjustment 13,242 10,740 56,135 23,779
-----------------------------------------------------
Total other
comprehensive income
(loss) for the year 23,007 16,943 60,769 (5,361)
-----------------------------------------------------
Comprehensive income
for the year 22,482 17,013 62,263 15,706
-----------------------------------------------------
-----------------------------------------------------
Kruger Products L.P.
Consolidated Statement of Cash Flows
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
$ $ $ $
----------------------------------------------------
Cash flows from (used
in) operating
activities
Net income (loss) for
the year (525) 70 1,494 21,067
Items not affecting cash
Depreciation 12,189 10,475 41,643 37,049
Amortization 318 170 881 649
Loss (gain) on sale of
fixed assets 450 144 734 (135)
Change in amortized
cost of Partnership
units liability (1,010) 7,852 4,003 13,759
Unrealized foreign
exchange loss 1,578 1,643 6,906 3,522
Interest expense 10,095 9,807 58,164 44,730
Pension and post
retirement benefits 2,685 2,435 14,146 9,874
Provisions 229 271 3,034 3,762
Income taxes 6,157 278 7,439 (1,840)
Gain on sale of non-
financial assets 12 - (1,119) -
----------------------------------------------------
Total items not
affecting cash 32,703 33,075 135,831 111,370
Net change in non-cash
working capital (4,382) 17,209 (24,540) (12,454)
Contributions to pension
and post-retirement
benefit plans (11,553) (2,154) (23,084) (22,414)
Provisions paid (2,580) (653) (3,558) (2,562)
Income tax payments (557) (480) (2,107) (2,102)
----------------------------------------------------
Net cash from operating
activities 13,106 47,067 84,036 92,905
----------------------------------------------------
Cash flows from (used
in) investing
activities
Purchases of property,
plant & equipment (21,552) (13,850) (54,701) (41,034)
Purchases of software (722) (229) (2,682) (1,218)
Available-for-sale
investment - (277) - (277)
Proceeds on sale of
property, plant and
equipment - - 736 578
Acqusition of business - - - (23,360)
----------------------------------------------------
Net cash used in
investing activities (22,274) (14,356) (56,647) (65,311)
----------------------------------------------------
Cash flows from (used
in) financing
activities
Proceeds from long-term
debt 206,000 - 206,000 -
Repayment of long-term
debt (179,976) (4,243) (184,856) (8,577)
Payment of deferred
financing fees (1,248) - (1,388) -
Interest paid on long-
term debt (22,603) (7,193) (44,978) (28,389)
Distributions and
advances paid (7,156) (6,639) (31,811) (29,054)
Proceeds from issuing
partnership units - 192 195 1,070
----------------------------------------------------
Net cash used in
financing activities (4,983) (17,883) (56,838) (64,950)
----------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents held
in foreign currency 1,059 621 3,116 1,470
----------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
year (13,092) 15,449 (26,333) (35,886)
Cash and cash
equivalents - Beginning
of year 38,547 36,339 51,788 87,674
----------------------------------------------------
Cash and cash
equivalents - End of
year 25,455 51,788 25,455 51,788
----------------------------------------------------
----------------------------------------------------
Kruger Products L.P.
Segment and Geographic Results
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
$ $ $ $
----------------------------------------------------
Segment Information
Segment Revenue
Consumer 240,583 217,862 897,959 842,635
AFH 54,799 53,904 220,320 184,263
Other 5,201 6,881 20,591 19,270
----------------------------------------------------
Total segment revenue 300,583 278,647 1,138,870 1,046,168
----------------------------------------------------
----------------------------------------------------
Segment EBITDA
Consumer 30,726 31,371 122,483 123,606
AFH 621 307 5,407 1,687
Other (1,094) (1,239) (1,505) (3,657)
----------------------------------------------------
Total segment EBITDA 30,253 30,439 126,385 121,636
Reconciliation to Net
Income (Loss):
Depreciation and
amortization 12,507 10,645 42,524 37,698
Interest expense 10,095 9,807 58,164 44,730
Change in amortized cost
of Partnership units
liability (1,010) 7,852 4,003 13,759
Gain (loss) on sale of
fixed assets 450 144 734 (135)
Gain (loss) on sale of
non-financial assets 12 - (1,119) -
Restructuring costs 989 - 2,824 2,835
Pension revaluation -
past service cost - - 3,416 -
Unrealized foreign
exchange loss 1,578 1,643 6,906 3,522
----------------------------------------------------
Income before income
taxes 5,632 348 8,933 19,227
Income taxes 6,157 278 7,439 (1,840)
----------------------------------------------------
Net income (loss) (525) 70 1,494 21,067
----------------------------------------------------
----------------------------------------------------
Geographic Revenue
Canada 184,512 183,595 711,881 699,996
U.S. 103,384 85,912 389,154 316,738
Mexico 12,687 9,140 37,835 29,434
----------------------------------------------------
Total Revenue 300,583 278,647 1,138,870 1,046,168
----------------------------------------------------
----------------------------------------------------
KP Tissue Inc.
Statement of Financial Position
(thousands of Canadian dollars)
December 31, December 31,
2015 2014
$ $
--------------------------------
Assets
Current assets
Distributions receivable 1,613 1,601
Income tax recoverable 828 -
--------------------------------
2,441 1,601
Non-current assets
Investment in associate 126,643 153,732
--------------------------------
Total Assets 129,084 155,333
--------------------------------
--------------------------------
Liabilities
Current liabilities
Dividend payable 1,613 1,601
Payable to Partnership 108 53
Current portion of advances from
Partnership 432 584
Income tax payable - 495
--------------------------------
2,153 2,733
Non-current liabilities
Advances from Partnership 709 -
Deferred income taxes 1,007 2,005
--------------------------------
Total liabilities 3,869 4,738
--------------------------------
Equity
Common shares 11,577 10,138
Contributed surplus 144,819 144,819
Deficit (49,291) (12,220)
Accumulated other comprehensive income 18,110 7,858
--------------------------------
Total equity 125,215 150,595
--------------------------------
Total liabilities and equity 129,084 155,333
--------------------------------
--------------------------------
KP Tissue Inc.
Statement of Comprehensive Income (Loss)
(thousands of Canadian dollars, except share and per share amounts)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
$ $ $ $
----------------------------------------------------
Equity loss (1,516) (1,435) (5,480) (2,379)
Dilution gain (loss) (59) 7 70 102
Impairment in investment
in associate (28,000) - (28,000) -
----------------------------------------------------
Loss before income taxes (29,575) (1,428) (33,410) (2,277)
Income taxes (1,796) (177) (2,066) 241
----------------------------------------------------
Net loss for the year (27,779) (1,251) (31,344) (2,518)
----------------------------------------------------
Other comprehensive
income (loss)
net of tax expense
(recovery)
Items that will not be
reclassified to net
loss:
Remeasurements of
pensions 1,603 872 1,013 (3,692)
Remeasurements of post-
retirement benefits (196) 5 (267) (351)
Items that may be
subsequently
reclassified to net
loss:
Available-for-sale
investment 72 49 29 2
Cumulative translation
adjustment 2,376 2,020 10,223 4,481
----------------------------------------------------
Total other
comprehensive income
for the year 3,855 2,946 10,998 440
----------------------------------------------------
Comprehensive income
(loss) for the year (23,924) 1,695 (20,346) (2,078)
----------------------------------------------------
----------------------------------------------------
Basic loss per share (3,12) (0,14) (3,52) (0,29)
----------------------------------------------------
----------------------------------------------------
Weighted average number
of shares outstanding 8,952,820 8,859,731 8,910,948 8,834,508
----------------------------------------------------
----------------------------------------------------
KP Tissue Inc.
Statement of Cash Flows
(thousands of Canadian dollars)
13-week 13-week
period endedperiod ended Year ended Year ended
December 31,December 31, December 31, December 31,
2015 2014 2015 2014
$ $ $ $
----------------------------------------------------
Cash flows from (used
in) operating
activities
Net loss for the period (27,779) (1,251) (31,344) (2,518)
Items not affecting cash
Equity loss 1,516 1,435 5,480 2,379
Dilution (gain) loss 59 (7) (70) (102)
Impairment in
investment in
associate 28,000 - 28,000 -
Income taxes (1,796) (177) (2,066) 241
----------------------------------------------------
Total items not
affecting cash 27,779 1,251 31,344 2,518
Tax payments (307) (175) (1,712) (1,043)
Tax distribution
received - - 571 459
Advances received 307 175 1,141 584
----------------------------------------------------
Net cash from (used in)
operating activities - - - -
----------------------------------------------------
Cash flows from (used
in) investing activites
Investment in associate - (193) (195) (1,070)
Partnership unit
distributions received 1,205 1,593 5,217 6,350
----------------------------------------------------
Net cash from investing
activities 1,205 1,400 5,022 5,280
----------------------------------------------------
Cash flows from (used
in) financing
activities
Issuance of common
shares - 193 195 1,070
Dividends paid (1,205) (1,593) (5,217) (6,350)
----------------------------------------------------
Net cash used in
financing activities (1,205) (1,400) (5,022) (5,280)
----------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
year - - - -
Cash and cash
equivalents - Beginning
of year - - - -
----------------------------------------------------
Cash and cash
equivalents - End of
year - - - -
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FOR FURTHER INFORMATION PLEASE CONTACT:
INFORMATION:
Francois Paroyan
General Counsel and Corporate Secretary
KP Tissue Inc.
905.812.6936
francois.paroyan@krugerproducts.ca
INVESTORS:
Mike Baldesarra
Director of Investor Relations
KP Tissue Inc.
905.812.6962
IR@KPTissueinc.com
Source: KP Tissue Inc.
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