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FIRST QUARTER 2013 OVERVIEW
Selected Financial Information and Statistics(1)
(millions of Canadian dollars, Q1 Q4 Q1except per share amounts) 2013 2012 2012--------------------------------------------------------------------------Operating income (loss) by segment: Lumber $ 88.4 $ 42.5 $ (20.3) Pulp and Paper $ 18.9 $ 12.0 $ 11.3 Unallocated and Other(6) $ (7.3) $ (5.5) $ (9.4)--------------------------------------------------------------------------Total operating income (loss) $ 100.0 $ 49.0 $ (18.4)Add: Amortization $ 46.9 $ 47.8 $ 42.6--------------------------------------------------------------------------Total operating income before amortization $ 146.9 $ 96.8 $ 24.2Add (deduct): Working capital movements $ (94.5) $ (49.4) $ (76.8) Defined benefit pension plan contributions $ (13.5) $ (13.4) $ (14.0) Other operating cash flows, net(2) $ 17.1 $ (6.4) $ 14.8--------------------------------------------------------------------------Cash from (used in) operating activities $ 56.0 $ 27.6 $ (51.8)Add (deduct): Finance expenses paid $ (2.5) $ (7.6) $ (3.1) Distributions paid to non- controlling interests $ (2.4) $ (0.4) $ (4.3) Capital additions, net(3) $ (46.4) $ (48.8) $ (110.6) Drawdown (repayment) of long-term debt $ - $ - $ 50.1 Other, net $ 5.6 $ 12.0 $ 5.9--------------------------------------------------------------------------Change in cash / operating loans $ 10.3 $ (17.2) $ (113.8)----------------------------------------------------------------------------------------------------------------------------------------------------ROIC - Consolidated(4) 4.8% 2.4% (1.5)%----------------------------------------------------------------------------------------------------------------------------------------------------Average exchange rate (US$ per C$1.00)(5) $ 0.991 $ 1.009 $ 0.999----------------------------------------------------------------------------------------------------------------------------------------------------(1) Certain prior period amounts have been restated due to the adoption ofamended IAS 19, Employee Benefits and IFRS 11, Joint Arrangements. Furtherdetails can be found in the Company's unaudited interim consolidatedfinancial statements.(2) Further information on operating cash flows can be found in theCompany's unaudited interim consolidated financial statements.(3) Additions to property, plant and equipment include the acquisition ofassets from Tembec Industries Ltd. ("Tembec") in the first quarter of 2012,and are shown net of amount received under Government funding initiatives inthe pulp and paper segment.(4) Consolidated Return on Invested Capital ("ROIC") is equal to operatingincome/loss, plus realized gains/losses on derivatives, equity income/lossfrom joint venture and other income/expense, all net of minority interest,divided by the average invested capital during the year. Invested capital isequal to capital assets, plus long-term investments and net non-cash workingcapital, all excluding minority interest components.(5) Source - Bank of Canada (average noon rate for the period).(6) Reported results for the first quarter of 2013 reflect the Company'sintent to sell its 50% share in Canfor-LP OSB Limited Partnership ("Canfor-LP OSB") and related accounting thereof. In accordance with IFRS, theCompany no longer recorded its share of Canfor-LP OSB's income subsequent toclassification as held for sale on December 31, 2012. The impact onoperating income and net income for the first quarter of 2013 was $11.0million and $8.3 million, respectively, or $0.06 per share.
