Restricted Group Supplemental Disclosure | 3 Months Ended |
Mar. 31, 2014 |
Restricted Group Supplemental Disclosure [Abstract] | ' |
Restricted Group Supplemental Disclosure | ' |
Note 12. Restricted Group Supplemental Disclosure |
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The terms of the indenture governing the Company's Senior Notes require that it provides the results of operations and financial condition of Mercer Inc. and the restricted subsidiaries under the indenture, collectively referred to as the "Restricted Group". As at and during the three months ended March 31, 2014 and 2013, the Restricted Group was comprised of Mercer Inc., certain holding subsidiaries and its Rosenthal and Celgar mills. The Restricted Group excludes the Stendal mill. |
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Combined Condensed Balance Sheets |
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| 31-Mar-14 |
| Restricted | | Unrestricted | | | | Consolidated |
| Group | | Subsidiaries | | Eliminations | | Group |
ASSETS | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | $ | 108,046 | | $ | 64,063 | | $ | - | | $ | 172,109 |
Receivables | | 73,801 | | | 75,261 | | | - | | | 149,062 |
Inventories | | 93,226 | | | 56,663 | | | - | | | 149,889 |
Prepaid expenses and other | | 15,005 | | | 2,508 | | | - | | | 17,513 |
Deferred income tax | | 3,272 | | | 3,275 | | | - | | | 6,547 |
Total current assets | | 293,350 | | | 201,770 | | | - | | | 495,120 |
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Long-term assets | | | | | | | | | | | |
Property, plant and equipment | | 404,647 | | | 609,864 | | | - | | | 1,014,511 |
Deferred note issuance costs and other | | 10,702 | | | 9,410 | | | - | | | 20,112 |
Deferred income tax | | 9,890 | | | 7,040 | | | - | | | 16,930 |
Due from unrestricted group | | 154,992 | | | - | | | -154,992 | | | - |
Total assets | $ | 873,581 | | $ | 828,084 | | $ | -154,992 | | $ | 1,546,673 |
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LIABILITIES | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Accounts payable and other | $ | 62,799 | | $ | 58,174 | | $ | - | | $ | 120,973 |
Pension and other post-retirement benefit | | | | | | | | | | | |
obligations | | 1,280 | | | - | | | - | | | 1,280 |
Debt | | - | | | 62,573 | | | - | | | 62,573 |
Total current liabilities | | 64,079 | | | 120,747 | | | - | | | 184,826 |
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Long-term liabilities | | | | | | | | | | | |
Debt | | 336,253 | | | 549,741 | | | - | | | 885,994 |
Due to restricted group | | - | | | 154,992 | | | -154,992 | | | - |
Interest rate derivative liability | | - | | | 43,262 | | | - | | | 43,262 |
Pension and other post-retirement benefit | | | | | | | | | | | |
obligations | | 34,344 | | | - | | | - | | | 34,344 |
Capital leases and other | | 8,999 | | | 10,927 | | | - | | | 19,926 |
Deferred income tax | | 16,181 | | | - | | | - | | | 16,181 |
Total liabilities | | 459,856 | | | 879,669 | | | -154,992 | | | 1,184,533 |
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EQUITY | | | | | | | | | | | |
Total shareholders' equity (deficit) | | 413,725 | | | -42,960 | | | - | | | 370,765 |
Noncontrolling interest (deficit) | | - | | | -8,625 | | | - | | | -8,625 |
Total liabilities and equity | $ | 873,581 | | $ | 828,084 | | $ | -154,992 | | $ | 1,546,673 |
Note 12. Restricted Group Supplemental Disclosure (continued) |
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Combined Condensed Balance Sheets |
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| 31-Dec-13 |
| Restricted | | Unrestricted | | | | Consolidated |
| Group | | Subsidiaries | | Eliminations | | Group |
ASSETS | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | $ | 82,910 | | $ | 64,818 | | $ | - | | $ | 147,728 |
Receivables | | 75,987 | | | 59,906 | | | - | | | 135,893 |
Inventories | | 93,807 | | | 77,101 | | | - | | | 170,908 |
Prepaid expenses and other | | 7,742 | | | 3,176 | | | - | | | 10,918 |
Deferred income tax | | 3,273 | | | 3,053 | | | - | | | 6,326 |
Total current assets | | 263,719 | | | 208,054 | | | - | | | 471,773 |
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Long-term assets | | | | | | | | | | | |
Property, plant and equipment | | 420,373 | | | 618,258 | | | - | | | 1,038,631 |
Deferred note issuance costs and other | | 10,987 | | | 10,011 | | | - | | | 20,998 |
Deferred income tax | | 9,894 | | | 7,263 | | | - | | | 17,157 |
Due from unrestricted group | | 153,851 | | | - | | | -153,851 | | | - |
Total assets | $ | 858,824 | | $ | 843,586 | | $ | -153,851 | | $ | 1,548,559 |
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LIABILITIES | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Accounts payable and other | $ | 49,891 | | $ | 53,923 | | $ | - | | $ | 103,814 |
Pension and other post-retirement benefit | | | | | | | | | | | |
obligations | | 1,330 | | | - | | | - | | | 1,330 |
Debt | | 749 | | | 59,606 | | | - | | | 60,355 |
Total current liabilities | | 51,970 | | | 113,529 | | | - | | | 165,499 |
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Long-term liabilities | | | | | | | | | | | |
Debt | | 336,382 | | | 582,635 | | | - | | | 919,017 |
Due to restricted group | | - | | | 153,851 | | | -153,851 | | | - |
Interest rate derivative liability | | - | | | 46,517 | | | - | | | 46,517 |
Pension and other post-retirement benefit | | | | | | | | | | | |
obligations | | 35,466 | | | - | | | - | | | 35,466 |
Capital leases and other | | 8,523 | | | 10,770 | | | - | | | 19,293 |
Deferred income tax | | 14,450 | | | - | | | - | | | 14,450 |
Total liabilities | | 446,791 | | | 907,302 | | | -153,851 | | | 1,200,242 |
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EQUITY | | | | | | | | | | | |
Total shareholders' equity (deficit) | | 412,033 | | | -52,955 | | | - | | | 359,078 |
Noncontrolling interest (deficit) | | - | | | -10,761 | | | - | | | -10,761 |
Total liabilities and equity | $ | 858,824 | | $ | 843,586 | | $ | -153,851 | | $ | 1,548,559 |
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Note 12. Restricted Group Supplemental Disclosure (continued) |
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Combined Condensed Statements of Operations |
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| Three Months Ended March 31, 2014 |
| Restricted | | Unrestricted | | | | Consolidated |
| Group | | Subsidiaries | | Eliminations | | Group |
Revenues | | | | | | | | | | | |
Pulp | $ | 140,797 | | $ | 137,709 | | $ | - | | $ | 278,506 |
Energy and chemicals | | 8,881 | | | 18,298 | | | - | | | 27,179 |
| | 149,678 | | | 156,007 | | | - | | | 305,685 |
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Operating costs | | 111,368 | | | 124,936 | | | - | | | 236,304 |
Operating depreciation and amortization | | 10,574 | | | 9,128 | | | - | | | 19,702 |
Selling, general and administrative expenses | | 6,451 | | | 3,985 | | | - | | | 10,436 |
| | 128,393 | | | 138,049 | | | - | | | 266,442 |
Operating income | | 21,285 | | | 17,958 | | | - | | | 39,243 |
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Other income (expense) | | | | | | | | | | | |
Interest expense | | -8,518 | | | -9,072 | | | 140 | | | -17,450 |
Gain (loss) on derivative instruments | | - | | | 3,228 | | | - | | | 3,228 |
Other income (expense) | | 112 | | | 34 | | | -140 | | | 6 |
Total other income (expense) | | -8,406 | | | -5,810 | | | - | | | -14,216 |
Income (loss) before income taxes | | 12,879 | | | 12,148 | | | - | | | 25,027 |
Income tax benefit (provision) | | -1,752 | | | -98 | | | - | | | -1,850 |
Net income (loss) | | 11,127 | | | 12,050 | | | - | | | 23,177 |
Less: net income attributable to noncontrolling | | | | | | | | | | | |
interest | | - | | | -2,136 | | | - | | | -2,136 |
Net income (loss) attributable to common | | | | | | | | | | | |
shareholders | $ | 11,127 | | $ | 9,914 | | $ | - | | $ | 21,041 |
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Note 12. Restricted Group Supplemental Disclosure (continued) |
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Combined Condensed Statements of Operations |
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| Three Months Ended March 31, 2013 |
| Restricted | | Unrestricted | | | | Consolidated |
| Group | | Subsidiaries | | Eliminations | | Group |
Revenues | | | | | | | | | | | |
Pulp | $ | 132,350 | | $ | 105,468 | | $ | - | | $ | 237,818 |
Energy and chemicals | | 9,361 | | | 14,606 | | | - | | | 23,967 |
| | 141,711 | | | 120,074 | | | - | | | 261,785 |
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Operating costs | | 118,200 | | | 99,784 | | | - | | | 217,984 |
Operating depreciation and amortization | | 10,815 | | | 8,635 | | | - | | | 19,450 |
Selling, general and administrative expenses | | 7,547 | | | 4,197 | | | - | | | 11,744 |
| | 136,562 | | | 112,616 | | | - | | | 249,178 |
Operating income | | 5,149 | | | 7,458 | | | - | | | 12,607 |
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Other income (expense) | | | | | | | | | | | |
Interest expense | | -7,745 | | | -11,791 | | | 2,176 | | | -17,360 |
Gain (loss) on derivative instruments | | -456 | | | 6,820 | | | - | | | 6,364 |
Other income (expense) | | 2,027 | | | 57 | | | -2,176 | | | -92 |
Total other income (expense) | | -6,174 | | | -4,914 | | | - | | | -11,088 |
Income (loss) before income taxes | | -1,025 | | | 2,544 | | | - | | | 1,519 |
Income tax benefit (provision) | | -1,342 | | | 197 | | | - | | | -1,145 |
Net income (loss) | | -2,367 | | | 2,741 | | | - | | | 374 |
Less: net income attributable to noncontrolling | | | | | | | | | | | |
interest | | - | | | -935 | | | - | | | -935 |
Net income (loss) attributable to common | | | | | | | | | | | |
shareholders | $ | -2,367 | | $ | 1,806 | | $ | - | | $ | -561 |
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Note 12. Restricted Group Supplemental Disclosure (continued) |
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Combined Condensed Statements of Cash Flows |
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| Three Months Ended March 31, 2014 | | | |
| Restricted | | Unrestricted | | Consolidated | | | |
| Group | | Subsidiaries | | Group | | | |
Cash flows from (used in) operating activities | | | | | | | | | | | |
Net income (loss) | $ | 11,127 | | $ | 12,050 | | $ | 23,177 | | | |
Adjustments to reconcile net income (loss) to cash flows | | | | | | | | | | | |
from operating activities | | | | | | | | | | | |
Unrealized loss (gain) on derivative instruments | | - | | | -3,228 | | | -3,228 | | | |
Depreciation and amortization | | 10,659 | | | 9,128 | | | 19,787 | | | |
Deferred income taxes | | 1,728 | | | - | | | 1,728 | | | |
Stock compensation expense | | -269 | | | - | | | -269 | | | |
Pension and other post-retirement expense, net of | | | | | | | | | | | |
funding | | 211 | | | - | | | 211 | | | |
Other | | 171 | | | 481 | | | 652 | | | |
Changes in working capital | | | | | | | | | | | |
Receivables | | -96 | | | -17,236 | | | -17,332 | | | |
Inventories | | -1,589 | | | 20,312 | | | 18,723 | | | |
Accounts payable and accrued expenses | | 14,683 | | | 7,559 | | | 22,242 | | | |
Other(1) | | -8,092 | | | 2,080 | | | -6,012 | | | |
Net cash from (used in) operating activities | | 28,533 | | | 31,146 | | | 59,679 | | | |
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Cash flows from (used in) investing activities | | | | | | | | | | | |
Purchase of property, plant and equipment | | -2,960 | | | -3,606 | | | -6,566 | | | |
Purchase of intangible assets | | -974 | | | -766 | | | -1,740 | | | |
Proceeds on sale of property, plant and equipment | | 134 | | | 45 | | | 179 | | | |
Net cash from (used in) investing activities | | -3,800 | | | -4,327 | | | -8,127 | | | |
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Cash flows from (used in) financing activities | | | | | | | | | | | |
Repayment of debt | | -744 | | | -29,797 | | | -30,541 | | | |
Repayment of capital lease obligations | | -272 | | | -388 | | | -660 | | | |
Proceeds from sale and lease-back transactions | | 1,047 | | | - | | | 1,047 | | | |
Proceeds from government grants | | 832 | | | 2,465 | | | 3,297 | | | |
Net cash from (used in) financing activities | | 863 | | | -27,720 | | | -26,857 | | | |
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Effect of exchange rate changes on cash and cash | | | | | | | | | | | |
equivalents | | -460 | | | 146 | | | -314 | | | |
Net increase (decrease) in cash and cash equivalents | | 25,136 | | | -755 | | | 24,381 | | | |
Cash and cash equivalents, beginning of period | | 82,910 | | | 64,818 | | | 147,728 | | | |
Cash and cash equivalents, end of period | $ | 108,046 | | $ | 64,063 | | $ | 172,109 | | | |
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| -1 | | Includes intercompany working capital related transactions. | | | | | | | | |
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Note 12. Restricted Group Supplemental Disclosure (continued) |
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Combined Condensed Statements of Cash Flows |
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| Three Months Ended March 31, 2013 | | | |
| Restricted | | Unrestricted | | Consolidated | | | |
| Group | | Subsidiaries | | Group | | | |
Cash flows from (used in) operating activities | | | | | | | | | | | |
Net income (loss) | $ | -2,367 | | $ | 2,741 | | $ | 374 | | | |
Adjustments to reconcile net income (loss) to cash flows | | | | | | | | | | | |
from operating activities | | | | | | | | | | | |
Unrealized loss (gain) on derivative instruments | | 621 | | | -6,820 | | | -6,199 | | | |
Depreciation and amortization | | 10,898 | | | 8,635 | | | 19,533 | | | |
Deferred income taxes | | 1,309 | | | 4,155 | | | 5,464 | | | |
Stock compensation expense | | 356 | | | - | | | 356 | | | |
Pension and other post-retirement expense, net of | | | | | | | | | | | |
funding | | 160 | | | - | | | 160 | | | |
Other | | 545 | | | 1,017 | | | 1,562 | | | |
Changes in working capital | | | | | | | | | | | |
Receivables | | -11,011 | | | -1,802 | | | -12,813 | | | |
Inventories | | 4,050 | | | 3,537 | | | 7,587 | | | |
Accounts payable and accrued expenses | | 13,871 | | | 121 | | | 13,992 | | | |
Other(1) | | -2,264 | | | 1,231 | | | -1,033 | | | |
Net cash from (used in) operating activities | | 16,168 | | | 12,815 | | | 28,983 | | | |
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Cash flows from (used in) investing activities | | | | | | | | | | | |
Purchase of property, plant and equipment | | -3,492 | | | -11,553 | | | -15,045 | | | |
Proceeds on sale of property, plant and equipment | | 17 | | | - | | | 17 | | | |
Net cash from (used in) investing activities | | -3,475 | | | -11,553 | | | -15,028 | | | |
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Cash flows from (used in) financing activities | | | | | | | | | | | |
Repayment of debt | | -736 | | | -25,684 | | | -26,420 | | | |
Proceeds from borrowings of debt | | - | | | 13,133 | | | 13,133 | | | |
Repayment of capital lease obligations | | -161 | | | -763 | | | -924 | | | |
Proceeds from (repayment of) credit facilities, net | | 7,948 | | | - | | | 7,948 | | | |
Proceeds from government grants | | - | | | 972 | | | 972 | | | |
Net cash from (used in) financing activities | | 7,051 | | | -12,342 | | | -5,291 | | | |
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Effect of exchange rate changes on cash and cash | | | | | | | | | | | |
equivalents | | -1,331 | | | -2,657 | | | -3,988 | | | |
Net increase (decrease) in cash and cash equivalents | | 18,413 | | | -13,737 | | | 4,676 | | | |
Cash and cash equivalents, beginning of period | | 48,407 | | | 89,032 | | | 137,439 | | | |
Cash and cash equivalents, end of period | $ | 66,820 | | $ | 75,295 | | $ | 142,115 | | | |
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| -1 | | Includes intercompany working capital related transactions. | | | | | | | | |
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