Catalyst Paper posted a net loss of $396.9 million ($1.04 per common share) on sales of $1,228.6 million during 2010. Results were significantly impacted by one-time charges of $304.2 million, including severance and impairment, associated with the permanent closure of the Elk Falls paper mill and Paper Recycling Division. The company’s net loss in 2009 was $4.4 million ($0.01 per common share) on sales of $1,223.5 million.
Before specific items, Catalyst recorded a net loss of $87.0 million ($0.23 per common share). This contrasts with a net loss before specific items of $58.8 million ($0.15 per common share) in 2009. In addition to impairment and closure-related costs, significant specific items during 2010 included restructuring costs and a foreign-exchange gain on the translation of debt denominated in US dollars, note exchange costs, and an unfavourable tax adjustment.
EBITDA was $46.3 million in 2010, and $71.6 million before specific items. This was down from EBITDA of $123.2 million in 2009, and $141.1 million before specific items. Appreciation in the Canadian dollar and year-over-year declines in paper prices were the most significant factors negatively impacting EBITDA in 2010, while pulp price improvement was the most significant offsetting factor.
Net earnings, operating earnings and earnings before interest, taxes, depreciation and amortization (EBITDA) improved in the second half of 2010.
"This was clearly another very challenging year marked by the start of a modest recovery," said President and CEO Kevin J. Clarke. "Demand began to build across most of our paper grades and that boosted prices in the last two quarters. Cost discipline across our mills, along with a consistent focus to gain share in new and known markets, enabled us to move second-half earnings and cash flow in the right direction."
