Company Quick10K Filing
Quick10K
Mercer
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$16.97 65 $1,110
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
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 2018-02-15 Earnings, Other Events, Exhibits
8-K 2018-01-01 Officers, Regulation FD, Exhibits
BTI British American Tobacco 86,910
ASB Associated BancCorp 3,720
TENB Tenable Holdings 2,740
GLOP Gaslog Partners 944
IMXI International Money Express 431
GCBC Greene County Bancorp 261
INNT Innovate Biopharmaceuticals 55
WISA Summit Wireless Technologies 31
EVOK Evoke Pharma 16
YUMA Yuma Energy 6
MERC 2019-06-30
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-3.1 merc-ex31_409.htm
EX-31.1 merc-ex311_10.htm
EX-31.2 merc-ex312_11.htm
EX-32.1 merc-ex321_8.htm
EX-32.2 merc-ex322_9.htm

Mercer Earnings 2019-06-30

MERC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

merc-10q_20190630.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 June 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 July 31, 2019.

 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 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

June 30

 

 

Six Months Ended

June 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

$

425,753

 

 

$

346,532

 

 

$

909,703

 

 

$

714,435

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and amortization

 

 

336,433

 

 

 

271,134

 

 

 

679,466

 

 

 

525,419

 

Cost of sales depreciation and amortization

 

 

32,038

 

 

 

22,906

 

 

 

62,174

 

 

 

46,115

 

Selling, general and administrative expenses

 

 

19,472

 

 

 

15,016

 

 

 

36,701

 

 

 

29,377

 

Operating income

 

 

37,810

 

 

 

37,476

 

 

 

131,362

 

 

 

113,524

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(18,369

)

 

 

(12,128

)

 

 

(36,920

)

 

 

(24,243

)

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

 

 

 

 

 

 

 

 

 

 

 

(21,515

)

Legal cost award

 

 

 

 

 

 

 

 

 

 

 

(6,951

)

Other income (expenses)

 

 

1,251

 

 

 

(132

)

 

 

2,290

 

 

 

(369

)

Total other expenses, net

 

 

(17,118

)

 

 

(12,260

)

 

 

(34,630

)

 

 

(53,078

)

Income before provision for income taxes

 

 

20,692

 

 

 

25,216

 

 

 

96,732

 

 

 

60,446

 

Provision for income taxes

 

 

(10,433

)

 

 

(8,461

)

 

 

(34,857

)

 

 

(18,042

)

Net income

 

$

10,259

 

 

$

16,755

 

 

$

61,875

 

 

$

42,404

 

Net income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.16

 

 

$

0.26

 

 

$

0.94

 

 

$

0.65

 

Dividends declared per common share

 

$

0.1375

 

 

$

0.1250

 

 

$

0.2625

 

 

$

0.2500

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands of U.S. dollars)

 

 

 

Three Months Ended

June 30

 

 

Six Months Ended

June 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

10,259

 

 

$

16,755

 

 

$

61,875

 

 

$

42,404

 

Other comprehensive income (loss), net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

24,088

 

 

 

(55,807

)

 

 

20,237

 

 

 

(39,522

)

Change in unrecognized losses and prior service costs related to defined benefit pension plans, net of tax of $30 and $36, respectively (2018 - $nil)

 

 

35

 

 

 

(574

)

 

 

95

 

 

 

(728

)

Change in unrealized gains/losses on marketable securities, net of taxes of $nil in all periods.

 

 

37

 

 

 

26

 

 

 

16

 

 

 

27

 

Other comprehensive income (loss), net of taxes

 

 

24,160

 

 

 

(56,355

)

 

 

20,348

 

 

 

(40,223

)

Total comprehensive income (loss)

 

$

34,419

 

 

$

(39,600

)

 

$

82,223

 

 

$

2,181

 

 

 

 

 

 

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)

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

257,322

 

 

$

240,491

 

Accounts receivable

 

 

273,502

 

 

 

252,692

 

Inventories

 

 

286,839

 

 

 

303,813

 

Prepaid expenses and other

 

 

20,229

 

 

 

13,703

 

Total current assets

 

 

837,892

 

 

 

810,699

 

Property, plant and equipment, net

 

 

1,031,696

 

 

 

1,029,257

 

Investment in joint ventures

 

 

57,659

 

 

 

62,574

 

Intangible assets, net

 

 

55,795

 

 

 

53,927

 

Operating lease right-of-use assets

 

 

14,087

 

 

 

 

Other long-term assets

 

 

31,183

 

 

 

17,904

 

Deferred income tax

 

 

1,465

 

 

 

1,374

 

Total assets

 

$

2,029,777

 

 

$

1,975,735

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and other

 

$

222,272

 

 

$

194,484

 

Pension and other post-retirement benefit obligations

 

 

831

 

 

 

904

 

Total current liabilities

 

 

223,103

 

 

 

195,388

 

Debt

 

 

983,644

 

 

 

1,041,389

 

Pension and other post-retirement benefit obligations

 

 

26,291

 

 

 

25,829

 

Finance lease liabilities

 

 

23,229

 

 

 

24,669

 

Operating lease liabilities

 

 

11,610

 

 

 

 

Other long-term liabilities

 

 

14,394

 

 

 

13,924

 

Deferred income tax

 

 

100,981

 

 

 

93,107

 

Total liabilities

 

 

1,383,252

 

 

 

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

 

 

342,815

 

 

 

342,438

 

Retained earnings

 

 

345,934

 

 

 

301,990

 

Accumulated other comprehensive loss

 

 

(107,822

)

 

 

(128,170

)

Total shareholders’ equity

 

 

646,525

 

 

 

581,429

 

Total liabilities and shareholders’ equity

 

$

2,029,777

 

 

$

1,975,735

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

Subsequent event (Note 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

Income (Loss)

 

 

Total

Equity

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2019

 

 

65,651

 

 

$

65,620

 

 

$

341,644

 

 

$

345,400

 

 

$

(131,982

)

 

$

620,682

 

Shares issued on grants of restricted shares

 

 

31

 

 

 

31

 

 

 

(31

)

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,202

 

 

 

 

 

 

 

 

 

1,202

 

Net income

 

 

 

 

 

 

 

 

 

 

 

10,259

 

 

 

 

 

 

10,259

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(9,024

)

 

 

 

 

 

(9,024

)

Repurchase of common shares

 

 

(53

)

 

 

(53

)

 

 

 

 

 

(701

)

 

 

 

 

 

(754

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,160

 

 

 

24,160

 

Balance June 30, 2019

 

 

65,629

 

 

$

65,598

 

 

$

342,815

 

 

$

345,934

 

 

$

(107,822

)

 

$

646,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2018

 

 

65,171

 

 

$

65,128

 

 

$

338,734

 

 

$

223,501

 

 

$

(42,869

)

 

$

584,494

 

Shares issued on grants of restricted shares

 

 

31

 

 

 

43

 

 

 

(43

)

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,759

 

 

 

 

 

 

 

 

 

1,759

 

Net income

 

 

 

 

 

 

 

 

 

 

 

16,755

 

 

 

 

 

 

16,755

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(8,151

)

 

 

 

 

 

(8,151

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(56,355

)

 

 

(56,355

)

Balance June 30, 2018

 

 

65,202

 

 

$

65,171

 

 

$

340,450

 

 

$

232,105

 

 

$

(99,224

)

 

$

538,502

 

 

Six Months Ended June 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

 

 

 

 

 

 

 

 

857

 

 

 

 

 

 

 

 

 

857

 

Net income

 

 

 

 

 

 

 

 

 

 

 

61,875

 

 

 

 

 

 

61,875

 

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

(17,230

)

 

 

 

 

 

(17,230

)

Repurchase of common shares

 

 

(53

)

 

 

(53

)

 

 

 

 

 

(701

)

 

 

 

 

 

(754

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,348

 

 

 

20,348

 

Balance June 30, 2019

 

 

65,629

 

 

$

65,598

 

 

$

342,815

 

 

$

345,934

 

 

$

(107,822

)

 

$

646,525