CPPI SHARE EXCHANGE
On March 2, 2012, Canadian Forest Products Ltd. ("Canfor") acquired 35,776,483 common shares of Canfor Pulp Products, Inc. ("CPPI") in exchange for its 35,776,483 Class B Exchangeable LP Units of Canfor Pulp Limited Partnership ("the Partnership") and 35,776,483 common shares of Canfor Pulp Holding Inc. ("the General Partner"), pursuant to the terms of an Exchange Agreement made as of January 1, 2011 among Canfor, CPPI, the General Partner and the Partnership. As a result of the exchange, CPPI's interest in both the Partnership and the General Partner increased from 49.8% to 100% and Canfor acquired a 50.2% interest in CPPI. For the quarter ended March 31, 2012, and all subsequent quarters, the results of CPPI include the results of the Partnership.
FIRST QUARTER 2013 OVERVIEW
Selected Financial Information and Statistics(1)
Q1 Q4 Q1(millions of Canadian dollars, except pershare amounts) 2013 2012 2012---------------------------------------------------------------------------Operating income (loss) by segment: Pulp $ 15.4 $ 7.8 $ 12.2 Paper $ 5.9 $ 7.0 $ 2.7 Unallocated $ (2.3) $ (2.7) $ (3.4)---------------------------------------------------------------------------Total operating income $ 19.0 $ 12.1 $ 11.5Add: Amortization $ 18.9 $ 20.0 $ 17.2---------------------------------------------------------------------------Total operating income before amortization $ 37.9 $ 32.1 $ 28.7Add (deduct): Working capital movements $ (7.2) $ 2.4 $ 14.4 Defined benefit pension plan contributions $ (2.8) $ (2.4) $ (2.6) Other operating cash flows, net $ 0.4 $ (6.3) $ 1.0---------------------------------------------------------------------------Cash from operating activities $ 28.3 $ 25.8 $ 41.5Add (deduct): Distributions / dividends paid $ (3.6) $ - $ (7.8) Finance expenses paid $ (0.2) $ (4.1) $ (0.2) Capital additions, net(2) $ (6.9) $ (11.5) $ (18.6) Acquisition of CPPI cash on exchange $ - $ - $ 6.8 Other, net $ 0.1 $ - $ 0.1---------------------------------------------------------------------------Change in cash / operating loans $ 17.7 $ 10.2 $ 21.8------------------------------------------------------------------------------------------------------------------------------------------------------Average exchange rate (US$ per C$1.00)(3) $ 0.991 $ 1.009 $ 0.999------------------------------------------------------------------------------------------------------------------------------------------------------(1) Certain prior period amounts have been restated due to the adoption ofamended IAS 19, Employee Benefits. Further details can be found in theCompany's unaudited interim consolidated financial statements.(2) Additions to property, plant and equipment are shown net of amountsreceived under Government funding initiatives.(3) Source - Bank of Canada (average noon rate for the period).
