Exhibit 99.5
Unaudited supplemental condensed consolidating financial information of
TEMBEC INC.
Quarters ended March 29, 2014 and March 30, 2013
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
The following condensed consolidating financial information is prepared in compliance with National Instrument 51-102 –Continuous Disclosure Obligations, under Canadian securities laws.
The senior secured notes (the “Notes”) of Tembec Industries Inc. (the "Subsidiary Issuer") are fully and unconditionally guaranteed on a joint and several basis by Tembec Inc. (the "Parent Company") and most of the Subsidiary Issuer’s subsidiaries located in Canada (the “Guarantor Subsidiaries”). The Subsidiary Issuer and each of the Guarantor Subsidiaries are 100% owned by the Parent Company. The Notes are not guaranteed by the Company’s other subsidiaries (the “Other Subsidiaries”).
The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the balance sheets as at March 29, 2014 and March 30, 2013, the statements of comprehensive earnings (loss) and the statements of cash flows for the six-month period then ended, for the Parent Company and for the Subsidiary Issuer. It also provides the same information on a combined basis for the Guarantor Subsidiaries and the Other Subsidiaries.
The supplemental condensed consolidating financial information, which has been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), reflects the investments of the Parent Company in the Subsidiary Issuer using the equity method. Investments of the Subsidiary Issuer in the Guarantor Subsidiaries and Other Subsidiaries are also accounted for using this method.
More information on the Company and its significant accounting policies are included in the audited consolidated financial statements for the year ended September 28, 2013. The Company adopted the amended IAS 19,Employee Benefits, and has restated its comparative period results accordingly. Details on the effect of adopting amended IAS 19 are included in note 2 of the unaudited interim consolidated financial statements for the quarter ended March 29, 2014.
| TEMBECSupplemental Information for second quarter 2014 | 1 |
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Balance Sheets
(unaudited)(in millions of Canadian dollars)
March 29, 2014 | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | $ | 3 | $ | 20 | $ | - | $ | 23 | ||||||
Restricted cash | - | - | 5 | 3 | - | 8 | ||||||||||||
Trade and other receivables | 36 | 404 | 354 | 114 | (758 | ) | 150 | |||||||||||
Income tax receivable | - | 1 | - | 2 | - | 3 | ||||||||||||
Inventories | - | - | 279 | 33 | - | 312 | ||||||||||||
Biological assets | - | - | - | - | - | - | ||||||||||||
Prepaid expenses | - | 2 | 5 | 1 | - | 8 | ||||||||||||
Assets classified as held for sale | - | - | 7 | - | - | 7 | ||||||||||||
| 36 | 407 | 653 | 173 | (758 | ) | 511 | |||||||||||
| ||||||||||||||||||
Investments | 280 | 486 | - | - | (766 | ) | - | |||||||||||
Property, plant and equipment | - | 6 | 428 | 138 | - | 572 | ||||||||||||
Biological assets | - | - | 2 | - | - | 2 | ||||||||||||
Employee future benefits | - | 4 | 28 | - | - | 32 | ||||||||||||
Other long-term receivables | - | 8 | - | 2 | - | 10 | ||||||||||||
Deferred tax assets | - | - | - | 6 | - | 6 | ||||||||||||
| $ | 316 | $ | 911 | $ | 1,111 | $ | 319 | $ | (1,524 | ) | $ | 1,133 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Operating bank loans | $ | - | $ | - | $ | 77 | $ | 4 | $ | - | $ | 81 | ||||||
Trade, other payables and accrued charges | 96 | 277 | 547 | 70 | (758 | ) | 232 | |||||||||||
Interest payable | - | 11 | - | - | - | 11 | ||||||||||||
Income tax payable | - | - | - | - | - | - | ||||||||||||
Provisions | - | 5 | - | - | - | 5 | ||||||||||||
Current portion of long-term debt | 1 | - | 1 | 17 | - | 19 | ||||||||||||
Liabilities classified as held for sale | - | - | - | - | - | - | ||||||||||||
| 97 | 293 | 625 | 91 | (758 | ) | 348 | |||||||||||
| ||||||||||||||||||
Long-term debt | 1 | 326 | 93 | 14 | (4 | ) | 430 | |||||||||||
Provisions | - | - | 11 | - | - | 11 | ||||||||||||
Employee future benefits | - | 90 | 16 | 18 | - | 124 | ||||||||||||
Other long-term liabilities | - | - | 2 | - | - | 2 | ||||||||||||
| 98 | 709 | 747 | 123 | (762 | ) | 915 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 567 | 555 | 749 | 34 | (1,338 | ) | 567 | |||||||||||
Retained earnings (deficit) | (373 | ) | (377 | ) | (385 | ) | 138 | 624 | (373 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | 24 | 24 | - | 24 | (48 | ) | 24 | |||||||||||
| 218 | 202 | 364 | 196 | (762 | ) | 218 | |||||||||||
| $ | 316 | $ | 911 | $ | 1,111 | $ | 319 | $ | (1,524 | ) | $ | 1,133 | |||||
| TEMBECSupplemental Information for second quarter 2014 | 2 |
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Balance Sheets (continued)
(unaudited)(in millions of Canadian dollars)
September 28, 2013 (restated(1)) | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | $ | 19 | $ | 54 | $ | - | $ | 73 | ||||||
Restricted cash | - | - | - | 1 | - | 1 | ||||||||||||
Trade and other receivables | 36 | 311 | 273 | 76 | (539 | ) | 157 | |||||||||||
Income tax receivable | - | - | - | - | - | - | ||||||||||||
Inventories | - | - | 200 | 37 | - | 237 | ||||||||||||
Biological assets | - | - | - | - | - | - | ||||||||||||
Prepaid expenses | - | 1 | 4 | 1 | - | 6 | ||||||||||||
Assets classified as held for sale | - | - | 7 | - | - | 7 | ||||||||||||
| 36 | 312 | 503 | 169 | (539 | ) | 481 | |||||||||||
| ||||||||||||||||||
Investments | 256 | 462 | - | - | (718 | ) | - | |||||||||||
Property, plant and equipment | - | 7 | 366 | 123 | - | 496 | ||||||||||||
Biological assets | - | - | 5 | - | - | 5 | ||||||||||||
Employee future benefits | - | 6 | 18 | - | - | 24 | ||||||||||||
Other long-term receivables | - | 8 | - | 2 | - | 10 | ||||||||||||
Deferred tax assets | - | - | - | 5 | - | 5 | ||||||||||||
| $ | 292 | $ | 795 | $ | 892 | $ | 299 | $ | (1,257 | ) | $ | 1,021 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Operating bank loans | $ | - | $ | - | $ | 53 | $ | 4 | $ | - | $ | 57 | ||||||
Trade, other payables and accrued charges | 71 | 187 | 416 | 60 | (539 | ) | 195 | |||||||||||
Interest payable | - | 10 | - | - | - | 10 | ||||||||||||
Income tax payable | - | (1 | ) | - | 9 | - | 8 | |||||||||||
Provisions | - | 6 | - | - | - | 6 | ||||||||||||
Current portion of long-term debt | 1 | - | 1 | 14 | - | 16 | ||||||||||||
Liabilities classified as held for sale | - | - | - | - | - | - | ||||||||||||
| 72 | 202 | 470 | 87 | (539 | ) | 292 | |||||||||||
| ||||||||||||||||||
Long-term debt | 1 | 303 | 53 | 15 | (3 | ) | 369 | |||||||||||
Provisions | - | - | 12 | - | - | 12 | ||||||||||||
Employee future benefits | - | 91 | 16 | 20 | - | 127 | ||||||||||||
Other long-term liabilities | - | - | 2 | - | - | 2 | ||||||||||||
| 73 | 596 | 553 | 122 | (542 | ) | 802 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 567 | 555 | 731 | 34 | (1,320 | ) | 567 | |||||||||||
Retained earnings (deficit) | (354 | ) | (362 | ) | (392 | ) | 137 | 617 | (354 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | 6 | 6 | - | 6 | (12 | ) | 6 | |||||||||||
| 219 | 199 | 339 | 177 | (715 | ) | 219 | |||||||||||
| $ | 292 | $ | 795 | $ | 892 | $ | 299 | $ | (1,257 | ) | $ | 1,021 | |||||
| (1) See note 2 of the unaudited interim consolidated financial statements for the quarter ended March 29, 2014 |
| TEMBECSupplemental Information for second quarter 2014 | 3 |
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Balance Sheets (continued)
(unaudited)(in millions of Canadian dollars)
March 30, 2013 (restated(1)) | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | - | $ | 1 | $ | 4 | $ | 29 | $ | - | $ | 34 | ||||||
Restricted cash | - | - | 1 | - | - | 1 | ||||||||||||
Trade and other receivables | 36 | 367 | 234 | 100 | (570 | ) | 167 | |||||||||||
Income tax receivable | - | - | - | - | - | - | ||||||||||||
Inventories | - | - | 235 | 35 | - | 270 | ||||||||||||
Biological assets | - | - | 1 | - | - | 1 | ||||||||||||
Prepaid expenses | - | 2 | 7 | 1 | - | 10 | ||||||||||||
Assets classified as held for sale | - | - | 126 | - | - | 126 | ||||||||||||
| 36 | 370 | 608 | 165 | (570 | ) | 609 | |||||||||||
Investments | 153 | 373 | - | - | (526 | ) | - | |||||||||||
Property, plant and equipment | - | 6 | 318 | 109 | - | 433 | ||||||||||||
Biological assets | - | - | 5 | - | - | 5 | ||||||||||||
Employee future benefits | - | - | - | - | - | - | ||||||||||||
Other long-term receivables | - | 9 | - | 2 | - | 11 | ||||||||||||
Deferred tax assets | - | (1 | ) | - | 3 | - | 2 | |||||||||||
| $ | 189 | $ | 757 | $ | 931 | $ | 279 | $ | (1,096 | ) | $ | 1,060 | |||||
| ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Operating bank loans | $ | - | $ | - | $ | 78 | $ | 8 | $ | - | $ | 86 | ||||||
Trade, other payables and accrued charges | 53 | 184 | 478 | 66 | (570 | ) | 211 | |||||||||||
Interest payable | - | 10 | - | - | - | 10 | ||||||||||||
Income tax payable | - | - | - | 5 | - | 5 | ||||||||||||
Provisions | - | 1 | 1 | - | - | 2 | ||||||||||||
Current portion of long-term debt | 1 | - | - | 15 | - | 16 | ||||||||||||
Liabilities classified as held for sale | - | 13 | 20 | - | - | 33 | ||||||||||||
| 54 | 208 | 577 | 94 | (570 | ) | 363 | |||||||||||
Long-term debt | 1 | 299 | 39 | 22 | (8 | ) | 353 | |||||||||||
Provisions | - | 5 | 12 | - | - | 17 | ||||||||||||
Employee future benefits | - | 133 | 26 | 32 | - | 191 | ||||||||||||
Other long-term liabilities | - | - | 2 | - | - | 2 | ||||||||||||
| 55 | 645 | 656 | 148 | (578 | ) | 926 | |||||||||||
| ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||
Share capital | 567 | 555 | 717 | 40 | (1,312 | ) | 567 | |||||||||||
Retained earnings (deficit) | (428 | ) | (438 | ) | (442 | ) | 96 | 784 | (428 | ) | ||||||||
Accumulated other comprehensive earnings (loss) | (5 | ) | (5 | ) | - | (5 | ) | 10 | (5 | ) | ||||||||
| 134 | 112 | 275 | 131 | (518 | ) | 134 | |||||||||||
| $ | 189 | $ | 757 | $ | 931 | $ | 279 | $ | (1,096 | ) | $ | 1,060 | |||||
| (1) See note 2 of the unaudited interim consolidated financial statements for the quarter ended March 29, 2014 |
| TEMBECSupplemental Information for second quarter 2014 | 4 |
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Statements of Comprehensive Earnings (Loss)
(unaudited)(in millions of Canadian dollars, unless otherwise noted)
Six months ended March 29, 2014 | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Sales | $ | - | $ | - | $ | 591 | $ | 133 | $ | (8 | ) | $ | 716 | |||||
Freight and other deductions | - | - | 82 | 6 | - | 88 | ||||||||||||
Lumber export taxes | - | - | - | - | - | - | ||||||||||||
Cost of sales (excluding depreciation and amortization) | - | - | 477 | 93 | (8 | ) | 562 | |||||||||||
Selling, general and administrative | - | 4 | 24 | 7 | - | 35 | ||||||||||||
Share-based compensation | - | - | - | - | - | - | ||||||||||||
Depreciation and amortization | - | - | 13 | 4 | - | 17 | ||||||||||||
Other items | - | 10 | (18 | ) | - | - | (8 | ) | ||||||||||
Operating earnings (loss) | - | (14 | ) | 13 | 23 | - | 22 | |||||||||||
Interest, foreign exchange and other | 7 | (12 | ) | 8 | (4 | ) | 19 | 18 | ||||||||||
Exchange loss on long-term debt | - | 23 | - | - | - | 23 | ||||||||||||
Net finance costs (income) | 7 | 11 | 8 | (4 | ) | 19 | 41 | |||||||||||
Earnings (loss) before income taxes and share of results for equity accounting | (7 | ) | (25 | ) | 5 | 27 | (19 | ) | (19 | ) | ||||||||
Income tax expense (recovery) | - | (1 | ) | (1 | ) | 9 | - | 7 | ||||||||||
Share of results for equity accounting | (19 | ) | 2 | - | - | 17 | - | |||||||||||
Net earnings (loss) | (26 | ) | (22 | ) | 6 | 18 | (2 | ) | (26 | ) | ||||||||
Other comprehensive earnings (loss), net of income taxes: | ||||||||||||||||||
Defined benefit pension plans and other benefit plans | 9 | 9 | 3 | 2 | (14 | ) | 9 | |||||||||||
Income tax recovery (expense) | (2 | ) | (2 | ) | (2 | ) | - | 4 | (2 | ) | ||||||||
Foreign currency translation differences for foreign operations | 18 | 18 | - | 18 | (36 | ) | 18 | |||||||||||
| 25 | 25 | 1 | 20 | (46 | ) | 25 | |||||||||||
Total comprehensive earnings (loss) | $ | (1 | ) | $ | 3 | $ | 7 | $ | 38 | $ | (48 | ) | $ | (1 | ) | |||
Basic and diluted net loss in dollars per share | $ | (0.26 | ) | |||||||||||||||
| TEMBECSupplemental Information for second quarter 2014 | 5 |
| TEMBEC INC. SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Statements of Comprehensive Earnings (Loss) (continued)
(unaudited)(in millions of Canadian dollars, unless otherwise noted)
Six months ended March 30, 2013 (restated(1)) | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Sales | $ | - | $ | 1 | $ | 670 | $ | 124 | $ | (12 | ) | $ | 783 | |||||
Freight and other deductions | - | - | 98 | 9 | (3 | ) | 104 | |||||||||||
Lumber export taxes | - | - | 1 | - | - | 1 | ||||||||||||
Cost of sales (excluding depreciation and amortization) | - | - | 533 | 72 | (9 | ) | 596 | |||||||||||
Selling, general and administrative | - | 5 | 27 | 6 | - | 38 | ||||||||||||
Share-based compensation | - | 1 | - | - | - | 1 | ||||||||||||
Depreciation and amortization | - | - | 16 | 4 | - | 20 | ||||||||||||
Other items | - | 1 | 23 | 1 | - | 25 | ||||||||||||
Operating earnings (loss) | - | (6 | ) | (28 | ) | 32 | - | (2 | ) | |||||||||
Interest, foreign exchange and other | 1 | (7 | ) | 12 | - | 16 | 22 | |||||||||||
Exchange loss on long-term debt | - | 10 | - | - | - | 10 | ||||||||||||
Net finance costs (income) | 1 | 3 | 12 | - | 16 | 32 | ||||||||||||
Earnings (loss) before income taxes and share of results for equity accounting | (1 | ) | (9 | ) | (40 | ) | 32 | (16 | ) | (34 | ) | |||||||
Income tax expense (recovery) | - | - | - | 12 | - | 12 | ||||||||||||
Share of results for equity accounting | (45 | ) | (37 | ) | - | - | 82 | - | ||||||||||
Net earnings (loss) | (46 | ) | (46 | ) | (40 | ) | 20 | 66 | (46 | ) | ||||||||
Other comprehensive earnings (loss), net of income taxes: | ||||||||||||||||||
Defined benefit pension plans and other benefit plans | 73 | 73 | 27 | 7 | (107 | ) | 73 | |||||||||||
Income tax recovery (expense) | - | - | - | - | - | - | ||||||||||||
Foreign currency translation differences for foreign operations | 4 | 4 | - | 4 | (8 | ) | 4 | |||||||||||
| 77 | 77 | 27 | 11 | (115 | ) | 77 | |||||||||||
Total comprehensive earnings (loss) | $ | 31 | $ | 31 | $ | (13 | ) | $ | 31 | $ | (49 | ) | $ | 31 | ||||
Basic and diluted net loss in dollars per share | $ | (0.46 | ) | |||||||||||||||
| (1) See note 2 of the unaudited interim consolidated financial statements for the quarter ended March 29, 2014 |
| TEMBECSupplemental Information for second quarter 2014 | 6 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Statements of Cash Flows
(unaudited)(in millions of Canadian dollars)
Six months ended March 29, 2014 | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net earnings (loss) | $ | (26 | ) | $ | (22 | ) | $ | 6 | $ | 18 | $ | (2 | ) | $ | (26 | ) | ||
Adjustments for: | ||||||||||||||||||
Depreciation and amortization | - | - | 13 | 4 | - | 17 | ||||||||||||
Net finance costs | 7 | 11 | 8 | (4 | ) | 19 | 41 | |||||||||||
Income tax expense (recovery) | - | (1 | ) | (1 | ) | 9 | - | 7 | ||||||||||
Income tax paid | - | - | - | (20 | ) | - | (20 | ) | ||||||||||
Excess cash contributions over employee future benefits expense | - | (8 | ) | (3 | ) | (2 | ) | - | (13 | ) | ||||||||
Impairment loss | - | - | - | - | - | - | ||||||||||||
Share of results for equity accounting | 19 | (2 | ) | - | - | (17 | ) | - | ||||||||||
Gain on sale of assets | - | - | (21 | ) | - | - | (21 | ) | ||||||||||
Settlement loss on pension plan | - | 7 | - | - | - | 7 | ||||||||||||
Other | - | - | 4 | - | - | 4 | ||||||||||||
| - | (15 | ) | 6 | 5 | - | (4 | ) | ||||||||||
Change in non-cash working capital: | ||||||||||||||||||
Trade and other receivables | - | (72 | ) | (84 | ) | (34 | ) | 195 | 5 | |||||||||
Inventories | - | - | (81 | ) | 7 | - | (74 | ) | ||||||||||
Prepaid expenses | - | - | (1 | ) | (1 | ) | - | (2 | ) | |||||||||
Trade, other payables and accrued charges | 22 | 91 | 121 | (1 | ) | (195 | ) | 38 | ||||||||||
| 22 | 19 | (45 | ) | (29 | ) | - | (33 | ) | |||||||||
| 22 | 4 | (39 | ) | (24 | ) | - | (37 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||||
Disbursements for property, plant and equipment | - | - | (64 | ) | (11 | ) | - | (75 | ) | |||||||||
Proceeds from sale of assets | - | 1 | 23 | - | - | 24 | ||||||||||||
Change in restricted cash | - | - | (5 | ) | (2 | ) | - | (7 | ) | |||||||||
Investments in a subsidiary | (18 | ) | - | - | - | 18 | - | |||||||||||
Interest received | - | 15 | 6 | 1 | (22 | ) | - | |||||||||||
Other | - | - | - | - | - | - | ||||||||||||
| (18 | ) | 16 | (40 | ) | (12 | ) | (4 | ) | (58 | ) | |||||||
Cash flow from financing activities: | ||||||||||||||||||
Change in operating bank loans | - | - | 24 | (1 | ) | - | 23 | |||||||||||
Increase in long-term debt | - | - | 40 | 1 | - | 41 | ||||||||||||
Repayments of long-term debt | - | - | - | (2 | ) | - | (2 | ) | ||||||||||
Proceeds from issue of share capital | - | - | 18 | - | (18 | ) | - | |||||||||||
Interest paid | (4 | ) | (20 | ) | (19 | ) | - | 22 | (21 | ) | ||||||||
| (4 | ) | (20 | ) | 63 | (2 | ) | 4 | 41 | |||||||||
| - | - | (16 | ) | (38 | ) | - | (54 | ) | |||||||||
Foreign exchange gain on cash and cash equivalents held in foreign currencies | - | - | - | 4 | - | 4 | ||||||||||||
Net decrease in cash and cash equivalents | - | - | (16 | ) | (34 | ) | - | (50 | ) | |||||||||
| ||||||||||||||||||
Cash and cash equivalents, beginning of period | - | - | 19 | 54 | - | 73 | ||||||||||||
Cash and cash equivalents, end of period | $ | - | $ | - | $ | 3 | $ | 20 | $ | - | $ | 23 | ||||||
| TEMBECSupplemental Information for second quarter 2014 | 7 |
| TEMBEC INC. |
| SUPPLEMENTAL INFORMATION |
| March 29, 2014 |
| Supplemental condensed consolidating financial information |
Condensed Consolidated Statements of Cash Flows (continued)
(unaudited)(in millions of Canadian dollars)
Six months ended March 30, 2013 (restated(1)) | ||||||||||||||||||
| Parent | Subsidiary | Guarantor | Other | Consolidation | |||||||||||||
| Company | Issuer | Subsidiaries | Subsidiaries | Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net earnings (loss) | $ | (46 | ) | $ | (46 | ) | $ | (40 | ) | $ | 20 | $ | 66 | $ | (46 | ) | ||
Adjustments for: | ||||||||||||||||||
Depreciation and amortization | - | - | 16 | 4 | - | 20 | ||||||||||||
Net finance costs | 1 | 3 | 12 | - | 16 | 32 | ||||||||||||
Income tax expense (recovery) | - | - | - | 12 | - | 12 | ||||||||||||
Income tax paid | - | - | - | (8 | ) | - | (8 | ) | ||||||||||
Excess cash contributions over employee future benefits expense | - | (15 | ) | (1 | ) | (1 | ) | - | (17 | ) | ||||||||
Impairment loss | - | - | 22 | - | - | 22 | ||||||||||||
Share of results for equity accounting | 45 | 37 | - | - | (82 | ) | - | |||||||||||
Gain on sale of assets | - | - | (2 | ) | - | - | (2 | ) | ||||||||||
Settlement loss on pension plan | - | - | - | - | - | - | ||||||||||||
Other | - | 2 | (2 | ) | (3 | ) | - | (3 | ) | |||||||||
| - | (19 | ) | 5 | 24 | - | 10 | |||||||||||
Change in non-cash working capital: | ||||||||||||||||||
Trade and other receivables | - | (45 | ) | (55 | ) | (34 | ) | 138 | 4 | |||||||||
Inventories | - | - | (23 | ) | (8 | ) | - | (31 | ) | |||||||||
Prepaid expenses | - | (1 | ) | (3 | ) | (1 | ) | - | (5 | ) | ||||||||
Trade, other payables and accrued charges | 18 | 70 | 61 | (9 | ) | (138 | ) | 2 | ||||||||||
| 18 | 24 | (20 | ) | (52 | ) | - | (30 | ) | |||||||||
| 18 | 5 | (15 | ) | (28 | ) | - | (20 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||||
Disbursements for property, plant and equipment | - | (1 | ) | (57 | ) | (4 | ) | - | (62 | ) | ||||||||
Proceeds from sale of assets | - | - | 2 | - | - | 2 | ||||||||||||
Change in restricted cash | - | - | 4 | - | - | 4 | ||||||||||||
Investments in a subsidiary | (17 | ) | - | - | - | 17 | - | |||||||||||
Interest received | - | 12 | - | - | (12 | ) | - | |||||||||||
Other | - | 1 | - | - | - | 1 | ||||||||||||
| (17 | ) | 12 | (51 | ) | (4 | ) | 5 | (55 | ) | ||||||||
Cash flow from financing activities: | ||||||||||||||||||
Change in operating bank loans | - | - | 12 | 6 | - | 18 | ||||||||||||
Increase in long-term debt | - | - | 24 | - | - | 24 | ||||||||||||
Repayments of long-term debt | - | - | - | (2 | ) | - | (2 | ) | ||||||||||
Proceeds from issue of share capital | - | - | 17 | - | (17 | ) | - | |||||||||||
Interest paid | (1 | ) | (17 | ) | (12 | ) | (1 | ) | 12 | (19 | ) | |||||||
| (1 | ) | (17 | ) | 41 | 3 | (5 | ) | 21 | |||||||||
| - | - | (25 | ) | (29 | ) | - | (54 | ) | |||||||||
Foreign exchange gain on cash and cash equivalents held in foreign currencies | - | - | - | 1 | - | 1 | ||||||||||||
Net decrease in cash and cash equivalents | - | - | (25 | ) | (28 | ) | - | (53 | ) | |||||||||
Cash and cash equivalents, beginning of period | - | 1 | 29 | 57 | - | 87 | ||||||||||||
Cash and cash equivalents, end of period | $ | - | $ | 1 | $ | 4 | $ | 29 | $ | - | $ | 34 | ||||||
| (1) See note 2 of the unaudited interim consolidated financial statements for the quarter ended March 29, 2014 |
| TEMBECSupplemental Information for second quarter 2014 | 8 |
