March 10, 2016 - 7:00 AM EST
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KP Tissue Releases Fourth Quarter and Full Year 2015 Financial Results

Solid Performance despite FX Headwinds

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®, Purex®, SpongeTowels®, Scotties®, and White Swan®) and the Away-From-Home market, and continues to grow in the U.S. Consumer tissue business with the White Cloud® 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®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., KPLP manufactures the White Cloud® 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® CoC- certified mills (FSC® 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, 2015 December 31, 2014
 $ $
Assets   
Current assets   
 Cash and cash equivalents25,455 51,788
 Trade and other receivables108,720 107,092
 Receivables from related parties185 301
 Current portion of advances to partners2,630 3,474
 Inventories184,985 150,328
 Income tax recoverable772 1,302
 Prepaid expenses and other current assets8,429 7,351
 331,176 321,636
Non-current assets   
 Advances to partners4,234 -
 Property, plant & equipment737,708 652,762
 Other long-term assets8,107 7,738
 Goodwill160,939 160,939
 Intangible assets15,853 14,052
 Deferred income taxes39,411 34,874
Total assets1,297,428 1,192,001
    
Liabilities   
Current liabilities   
 Trade and other payables180,329 173,228
 Payables to related parties3,775 4,387
 Distributions payable9,871 9,781
 Current portion of provisions3,096 2,967
 Current portion of long-term debt10,183 8,879
 207,254 199,242
Non-current liabilities   
 Long-term debt425,859 358,646
 Other long-term liabilities48 156
 Provisions6,180 6,441
 Pensions87,164 98,533
 Post-retirement benefits57,346 53,357
 Liabilities to non-unitholders783,851 716,375
 Current portion of Partnership units liability2,630 6,949
 Long-term portion of Partnership units liability122,546 121,174
 Total Partnership units liability125,176 128,123
Total liabilities909,027 844,498
    
Equity   
 Partnership units318,012 299,616
 Retained earnings (deficit)(29,416)4,424
 Accumulated other comprehensive income99,805 43,463
Total equity388,401 347,503
Total equity and liabilities1,297,428 1,192,001
 
 
 
Kruger Products L.P. 
Consolidated Statement of Comprehensive Income
(thousands of Canadian dollars) 
 
 
 
 
 
 
13-week
period ended
December 31, 2015
 
 
 
 
 
13-week
period ended
December 31, 2014
 
 
Year ended
December 31, 2015
 
 
 
 
 
 
Year ended
December 31, 2014
 
 
 
 
 $ $$ $ 
        
Revenue300,583 278,6471,138,870 1,046,168 
        
Expenses       
 Cost of sales259,842 234,002970,759 879,139 
 Selling, general and administrative expenses23,452 24,50087,978 82,625 
 Gain on sale of non-financial assets12 -(1,119)- 
 Restructuring costs989 -2,824 2,835 
        
Operating income16,288 20,14578,428 81,569 
        
 Interest expense10,095 9,80758,164 44,730 
 Other expense561 9,99011,331 17,612 
        
Income before income taxes5,632 3488,933 19,227 
        
Income taxes6,157 2787,439 (1,840)
        
Net income (loss) for the period(525)701,494 21,067 
        
Other comprehensive income (loss)       
 Items that will not be reclassified to net income:       
 Remeasurements of pensions11,217 5,8227,094 (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 investment513 336207 15 
 Cumulative translation adjustment13,242 10,74056,135 23,779 
        
Total other comprehensive income (loss) for the year23,007 16,94360,769 (5,361)
        
Comprehensive income for the year22,482 17,01362,263 15,706 
 
 
 
Kruger Products L.P. 
Consolidated Statement of Cash Flows 
(thousands of Canadian dollars) 
 
 
13-week
period ended
December 31, 2015
 
13-week
period ended
December 31, 2014
 

Year ended
December 31, 2015
 

Year ended
December 31, 2014
 
 $ $ $ $ 
Cash flows from (used in) operating activities        
Net income (loss) for the year(525)70 1,494 21,067 
Items not affecting cash        
 Depreciation12,189 10,475 41,643 37,049 
 Amortization318 170 881 649 
 Loss (gain) on sale of fixed assets450 144 734 (135)
 Change in amortized cost of Partnership units liability(1,010)7,852 4,003 13,759 
 Unrealized foreign exchange loss1,578 1,643 6,906 3,522 
 Interest expense10,095 9,807 58,164 44,730 
 Pension and post retirement benefits2,685 2,435 14,146 9,874 
 Provisions229 271 3,034 3,762 
 Income taxes6,157 278 7,439 (1,840)
 Gain on sale of non-financial assets12 - (1,119)- 
 Total items not affecting cash32,703 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 activities13,106 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 debt206,000 - 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 currency1,059 621 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 year38,547 36,339 51,788 87,674 
         
Cash and cash equivalents - End of year25,455 51,788 25,455 51,788 
 
 
 
Kruger Products L.P. 
Segment and Geographic Results 
(thousands of Canadian dollars) 
         
 13-week
period ended
December 31, 2015
 13-week
period ended
December 31, 2014
 
Year ended
December 31, 2015
 
Year ended
December 31, 2014
 
 $ $ $ $ 
         
Segment Information        
         
Segment Revenue        
 Consumer240,583 217,862 897,959 842,635 
 AFH54,799 53,904 220,320 184,263 
 Other5,201 6,881 20,591 19,270 
         
Total segment revenue300,583 278,647 1,138,870 1,046,168 
         
Segment EBITDA        
 Consumer30,726 31,371 122,483 123,606 
 AFH621 307 5,407 1,687 
 Other(1,094)(1,239)(1,505)(3,657)
         
Total segment EBITDA30,253 30,439 126,385 121,636 
         
Reconciliation to Net Income (Loss):        
         
Depreciation and amortization12,507 10,645 42,524 37,698 
Interest expense10,095 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 assets450 144 734 (135)
Gain (loss) on sale of non-financial assets12 - (1,119)- 
Restructuring costs989 - 2,824 2,835 
Pension revaluation - past service cost- - 3,416 - 
Unrealized foreign exchange loss1,578 1,643 6,906 3,522 
         
Income before income taxes5,632 348 8,933 19,227 
         
Income taxes6,157 278 7,439 (1,840)
         
Net income (loss)(525)70 1,494 21,067 
         
Geographic Revenue        
         
Canada184,512 183,595 711,881 699,996 
U.S.103,384 85,912 389,154 316,738 
Mexico12,687 9,140 37,835 29,434 
         
Total Revenue300,583 278,647 1,138,870 1,046,168 
 
 
 
KP Tissue Inc. 
Statement of Financial Position 
(thousands of Canadian dollars) 
     
 December 31, 2015 December 31, 2014 
 $ $ 
Assets    
     
Current assets    
 Distributions receivable1,613 1,601 
 Income tax recoverable828 - 
 2,441 1,601 
     
Non-current assets    
 Investment in associate126,643 153,732 
     
Total Assets129,084 155,333 
     
Liabilities    
     
Current liabilities    
 Dividend payable1,613 1,601 
 Payable to Partnership108 53 
 Current portion of advances from Partnership432 584 
 Income tax payable- 495 
 2,153 2,733 
Non-current liabilities    
 Advances from Partnership709 - 
 Deferred income taxes1,007 2,005 
     
Total liabilities3,869 4,738 
     
Equity    
     
 Common shares11,577 10,138 
 Contributed surplus144,819 144,819 
 Deficit(49,291)(12,220)
 Accumulated other comprehensive income18,110 7,858 
     
Total equity125,215 150,595 
     
Total liabilities and equity129,084 155,333 
 
 
 
KP Tissue Inc. 
Statement of Comprehensive Income (Loss) 
(thousands of Canadian dollars, except share and per share amounts) 
 
13-week
period ended
December 31, 2015
 
13-week
period ended
December 31, 2014
 

Year ended
December 31, 2015
 

Year ended
December 31, 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 pensions1,603 872 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 investment72 49 29 2 
 Cumulative translation adjustment2,376 2,020 10,223 4,481 
         
Total other comprehensive income for the year3,855 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 outstanding8,952,820 8,859,731 8,910,948 8,834,508 
 
 
 
KP Tissue Inc. 
Statement of Cash Flows 
(thousands of Canadian dollars) 
        
 
 
 
13-week
period ended
December 31, 2015
13-week
period ended
December 31, 2014
 
 
 
 
Year ended
December 31, 2015
 
 
 
 
Year ended
December 31, 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 loss1,5161,435 5,480 2,379 
 Dilution (gain) loss59(7)(70)(102)
 Impairment in investment in associate28,000- 28,000 - 
 Income taxes(1,796)(177)(2,066)241 
 Total items not affecting cash27,7791,251 31,344 2,518 
        
Tax payments(307)(175)(1,712)(1,043)
Tax distribution received-- 571 459 
Advances received307175 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 received1,2051,593 5,217 6,350 
        
Net cash from investing activities1,2051,400 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-- - - 

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: Marketwired (March 10, 2016 - 7:00 AM EST)

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