Company Quick10K Filing
Mercer
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 66 $996
10-Q 2019-10-31 Quarter: 2019-09-30
10-Q 2019-08-01 Quarter: 2019-06-30
10-Q 2019-05-02 Quarter: 2019-03-31
10-K 2019-02-14 Annual: 2018-12-31
10-Q 2018-10-25 Quarter: 2018-09-30
10-Q 2018-07-26 Quarter: 2018-06-30
10-Q 2018-05-03 Quarter: 2018-03-31
10-K 2018-02-16 Annual: 2017-12-31
10-Q 2017-10-26 Quarter: 2017-09-30
10-Q 2017-07-27 Quarter: 2017-06-30
10-Q 2017-04-28 Quarter: 2017-03-31
10-K 2017-02-10 Annual: 2016-12-31
10-Q 2016-10-27 Quarter: 2016-09-30
10-Q 2016-07-28 Quarter: 2016-06-30
10-Q 2016-04-28 Quarter: 2016-03-31
10-K 2016-02-12 Annual: 2015-12-31
10-Q 2015-10-29 Quarter: 2015-09-30
10-Q 2015-07-30 Quarter: 2015-06-30
10-Q 2015-04-30 Quarter: 2015-03-31
10-K 2015-02-13 Annual: 2014-12-31
10-Q 2014-10-31 Quarter: 2014-09-30
10-Q 2014-08-01 Quarter: 2014-06-30
10-Q 2014-05-02 Quarter: 2014-03-31
10-K 2014-02-21 Annual: 2013-12-31
10-Q 2013-11-01 Quarter: 2013-09-30
10-Q 2013-08-02 Quarter: 2013-06-30
10-Q 2013-05-03 Quarter: 2013-03-31
10-K 2013-02-15 Annual: 2012-12-31
10-Q 2012-11-02 Quarter: 2012-09-30
10-Q 2012-08-03 Quarter: 2012-06-30
10-Q 2012-05-07 Quarter: 2012-03-31
10-K 2012-02-21 Annual: 2011-12-31
10-Q 2011-11-07 Quarter: 2011-09-30
10-Q 2011-08-04 Quarter: 2011-06-30
10-Q 2011-05-09 Quarter: 2011-03-31
10-K 2011-02-17 Annual: 2010-12-31
10-Q 2010-11-04 Quarter: 2010-09-30
10-Q 2010-08-05 Quarter: 2010-06-30
10-Q 2010-05-04 Quarter: 2010-03-31
10-K 2010-02-26 Annual: 2009-12-31
8-K 2019-10-31 Earnings, Other Events, Exhibits
8-K 2019-10-03 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2019-09-19 Earnings, Regulation FD, Exhibits
8-K 2019-09-19 Other Events, Exhibits
8-K 2019-08-01 Earnings, Other Events, Exhibits
8-K 2019-05-31 Shareholder Vote
8-K 2019-05-02 Earnings, Other Events, Exhibits
8-K 2019-04-16 Amend Bylaw, Exhibits
8-K 2019-02-14 Earnings, Other Events, Exhibits
8-K 2018-12-19 Enter Agreement, Leave Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-12-10 M&A, Regulation FD, Exhibits
8-K 2018-12-07 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-11-29 Other Events, Exhibits
8-K 2018-11-28 Regulation FD, Other Events, Exhibits
8-K 2018-10-25 Earnings, Other Events, Exhibits
8-K 2018-10-03 Enter Agreement, Regulation FD, Exhibits
8-K 2018-07-26 Earnings, Other Events, Exhibits
8-K 2018-06-01 Shareholder Vote
8-K 2018-05-25 Other Events
8-K 2018-05-03
8-K 2018-02-15 Earnings, Other Events, Exhibits
8-K 2018-01-01 Officers, Regulation FD, Exhibits
MERC 2019-09-30
Part I. Financial Information
Item 1. Financial Statements
Note 1. The Company and Summary of Significant Accounting Policies
Note 2. Acquisition of Mercer Peace River ("Mpr")
Note 3. Inventories
Note 4. Accounts Payable and Other
Note 5. Debt
Note 6. Pension and Other Post-Retirement Benefit Obligations
Note 7. Income Taxes
Note 8. Shareholders' Equity
Note 9. Net Income per Common Share
Note 10. Accumulated Other Comprehensive Loss
Note 11. Business Segment Information
Note 12. Financial Instruments and Fair Value Measurement
Note 13. Lease Commitments
Note 14. Commitments and Contingencies
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 merc-ex311_9.htm
EX-31.2 merc-ex312_10.htm
EX-32.1 merc-ex321_8.htm
EX-32.2 merc-ex322_7.htm

Mercer Earnings 2019-09-30

MERC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
NP 1,095 858 451 990 170 50 108 1,310 17% 12.1 6%
MERC 996 2,030 1,383 1,241 0 148 392 1,739 0% 4.4 7%
SWM 978 1,489 917 1,037 276 86 202 1,511 27% 7.5 6%
GLT 728 1,296 753 904 134 -165 -83 1,058 15% -12.7 -13%
VRS 653 1,659 824 2,640 116 96 303 694 4% 2.3 6%
RFP 613 3,752 2,152 3,456 2,365 220 373 895 68% 2.4 6%
ESND 474 1,791 1,358 4,987 647 -58 -11 963 13% -89.5 -3%
VRTV 294 2,697 2,178 8,323 0 -27 73 1,062 0% 14.5 -1%
CLW 284 1,956 1,521 1,736 183 -150 -34 875 11% -25.6 -8%
TIS 9 334 230 187 -2 -38 7 197 -1% 26.6 -11%

merc-10q_20190930.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _______ to _______

Commission File No.: 000-51826

MERCER INTERNATIONAL INC.

(Exact name of Registrant as specified in its charter)

Washington

 

47-0956945

(State or other jurisdiction

 

(I.R.S. Employer

of incorporation or organization)

 

Identification No.)

 

Suite 1120, 700 West Pender Street, Vancouver, British Columbia, Canada, V6C 1G8

(Address of office)

(604) 684-1099

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $1.00 per share

 

MERC

 

NASDAQ Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   YES       NO

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES      NO

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of "large accelerated filer", "accelerated filer", "non-accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):

 

Large Accelerated Filer

 

Accelerated Filer

Emerging Growth Company

 

Smaller Reporting Company

Non-Accelerated Filer

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES     NO  

The Registrant had 65,629,582 shares of common stock outstanding as at October 30, 2019.

 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

(Unaudited)

FORM 10-Q

QUARTERLY REPORT - PAGE 2


 

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands of U.S. dollars, except per share data)

 

 

 

Three Months Ended

September 30

 

 

Nine Months Ended

September 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

$

383,536

 

 

$

331,058

 

 

$

1,293,239

 

 

$

1,045,493

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and amortization

 

 

314,894

 

 

 

230,009

 

 

 

994,360

 

 

 

755,428

 

Cost of sales depreciation and amortization

 

 

31,934

 

 

 

23,197

 

 

 

94,108

 

 

 

69,312

 

Selling, general and administrative expenses

 

 

17,961

 

 

 

14,506

 

 

 

54,662

 

 

 

43,883

 

Operating income

 

 

18,747

 

 

 

63,346

 

 

 

150,109

 

 

 

176,870

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(18,183

)

 

 

(11,729

)

 

 

(55,103

)

 

 

(35,972

)

Loss on settlement of debt (Note 5(a))

 

 

 

 

 

 

 

 

 

 

 

(21,515

)

Legal cost award

 

 

 

 

 

 

 

 

 

 

 

(6,951

)

Other income (expenses)

 

 

887

 

 

 

(259

)

 

 

3,177

 

 

 

(628

)

Total other expenses, net

 

 

(17,296

)

 

 

(11,988

)

 

 

(51,926

)

 

 

(65,066

)

Income before provision for income taxes

 

 

1,451

 

 

 

51,358

 

 

 

98,183

 

 

 

111,804

 

Provision for income taxes

 

 

(244

)

 

 

(10,182

)

 

 

(35,101

)

 

 

(28,224

)

Net income

 

$

1,207

 

 

$

41,176

 

 

$

63,082

 

 

$

83,580

 

Net income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

0.63

 

 

$

0.96

 

 

$

1.28

 

Diluted

 

$

0.02

 

 

$

0.63

 

 

$

0.96

 

 

$

1.27

 

Dividends declared per common share

 

$

0.1375

 

 

$

0.1250

 

 

$

0.4000

 

 

$

0.3750

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands of U.S. dollars)

 

 

 

Three Months Ended

September 30

 

 

Nine Months Ended

September 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

1,207

 

 

$

41,176

 

 

$

63,082

 

 

$

83,580

 

Other comprehensive income (loss), net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(48,538

)

 

 

(1,982

)

 

 

(28,285

)

 

 

(41,477

)

Change in unrecognized losses and prior service costs related to defined benefit pension plans, net of tax of $7 and $43, respectively (2018 - $nil)

 

 

39

 

 

 

(574

)

 

 

134

 

 

 

(1,302

)

Other comprehensive loss, net of taxes

 

 

(48,499

)

 

 

(2,556

)

 

 

(28,151

)

 

 

(42,779

)

Total comprehensive income (loss)

 

$

(47,292

)

 

$

38,620

 

 

$

34,931

 

 

$

40,801

 

 

 

 

 

 

The accompanying notes are an integral part of these interim consolidated financial statements.

FORM 10-Q

QUARTERLY REPORT - PAGE 3


 

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands of U.S. dollars, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

264,899

 

 

$

240,491

 

Accounts receivable

 

 

228,154

 

 

 

252,692

 

Inventories

 

 

269,443

 

 

 

303,813

 

Prepaid expenses and other

 

 

20,512

 

 

 

13,703

 

Total current assets

 

 

783,008

 

 

 

810,699

 

Property, plant and equipment, net

 

 

1,009,639

 

 

 

1,029,257

 

Investment in joint ventures

 

 

55,382

 

 

 

62,574

 

Intangible assets, net

 

 

53,442

 

 

 

53,927

 

Operating lease right-of-use assets

 

 

13,054

 

 

 

 

Other long-term assets

 

 

32,220

 

 

 

17,904

 

Deferred income tax

 

 

2,908

 

 

 

1,374

 

Total assets

 

$

1,949,653

 

 

$

1,975,735

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and other

 

$

203,279

 

 

$

194,484

 

Pension and other post-retirement benefit obligations

 

 

778

 

 

 

904

 

Total current liabilities

 

 

204,057

 

 

 

195,388

 

Debt

 

 

984,087

 

 

 

1,041,389

 

Pension and other post-retirement benefit obligations

 

 

26,534

 

 

 

25,829

 

Finance lease liabilities

 

 

21,677

 

 

 

24,669

 

Operating lease liabilities

 

 

10,631

 

 

 

 

Other long-term liabilities

 

 

13,423

 

 

 

13,924

 

Deferred income tax

 

 

97,857

 

 

 

93,107

 

Total liabilities

 

 

1,358,266

 

 

 

1,394,306

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Common shares $1 par value; 200,000,000 authorized; 65,629,000 issued and outstanding (2018 – 65,202,000)

 

 

65,598

 

 

 

65,171

 

Additional paid-in capital

 

 

343,994

 

 

 

342,438

 

Retained earnings

 

 

338,116

 

 

 

301,990

 

Accumulated other comprehensive loss

 

 

(156,321

)

 

 

(128,170

)

Total shareholders’ equity

 

 

591,387

 

 

 

581,429

 

Total liabilities and shareholders’ equity

 

$

1,949,653

 

 

$

1,975,735

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

Subsequent events (Note 5(a), 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these interim consolidated financial statements.

FORM 10-Q

QUARTERLY REPORT - PAGE 4


 

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

(In thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

(thousands of

shares)

 

 

Amount, at

Par

Value

 

 

Additional

Paid -in

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

Equity

 

Three Months Ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance June 30, 2019

 

 

65,629

 

 

$

65,598

 

 

$

342,815

 

 

$

345,934

 

 

$

(107,822

)

 

$

646,525

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,179

 

 

 

 

 

 

 

 

 

1,179

 

Net income

 

 

 

 

 

 

 

 

 

 

 

1,207

 

 

 

 

 

 

1,207

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(9,025

)

 

 

 

 

 

(9,025

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48,499

)

 

 

(48,499

)

Balance September 30, 2019

 

 

65,629

 

 

$

65,598

 

 

$

343,994

 

 

$

338,116

 

 

$

(156,321

)

 

$

591,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance June 30, 2018

 

 

65,202

 

 

$

65,171

 

 

$

340,450

 

 

$

232,105

 

 

$

(99,224

)

 

$

538,502

 

Stock compensation expense

 

 

 

 

 

 

 

 

970

 

 

 

 

 

 

 

 

 

970

 

Net income

 

 

 

 

 

 

 

 

 

 

 

41,176

 

 

 

 

 

 

41,176

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(8,150

)

 

 

 

 

 

(8,150

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,556

)

 

 

(2,556

)

Balance September 30, 2018

 

 

65,202

 

 

$

65,171

 

 

$

341,420

 

 

$

265,131

 

 

$

(101,780

)

 

$

569,942

 

 

Nine Months Ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2018

 

 

65,202

 

 

$

65,171

 

 

$

342,438

 

 

$

301,990

 

 

$

(128,170

)

 

$

581,429

 

Shares issued on grants of restricted shares

 

 

31

 

 

 

31

 

 

 

(31

)

 

 

 

 

 

 

 

 

 

Shares issued on grants of performance share units

 

 

449

 

 

 

449

 

 

 

(449

)

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

 

2,036

 

 

 

 

 

 

 

 

 

2,036

 

Net income

 

 

 

 

 

 

 

 

 

 

 

63,082

 

 

 

 

 

 

63,082

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(26,255

)

 

 

 

 

 

(26,255

)

Repurchase of common shares

 

 

(53

)

 

 

(53

)

 

 

 

 

 

(701

)

 

 

 

 

 

(754

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,151

)

 

 

(28,151

)

Balance September 30, 2019

 

 

65,629

 

 

$

65,598

 

 

$

343,994

 

 

$

338,116