FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
July 22, 1999
ST. LAURENT PAPERBOARD INC.
(Translation of registrant's name into English)
630 Rene-Levesque Boulevard, West, Suite 3000,
Montreal, Quebec H3B 5C7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ...... Form 40-F ..X...
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b)under the Securities Exchange Act of 1934.
Yes ..... No ...X..
INFORMATION FILED WITH THIS REPORT
The following document is filed as an Exhibit to this Report:
Exhibit I -- Press Release, dated July 22, 1999, of St. Laurent Paperboard Inc.
announcing its results for the Second Quarter of 1999.
<PAGE>
PRESENTATION OF OUR FINANCIAL INFORMATION
Beginning in 1997, we began reporting our financial results in U.S.
dollars. In this Report (and the Exhibit attached to this Report), unless
otherwise specified or the context otherwise requires, all dollar amounts are
expressed in U.S. dollars. Amounts reported by us in years prior to 1997 have
been converted into U.S. dollars using a convenience exchange rate of US $0.73
to CAN $1, the closing rate as at December 31, 1996. The average exchange rate
of the U.S. dollar to the Canadian dollar for 1994, 1995 and 1996 was $0.7300,
$0.7286 and $0.7332, respectively. Beginning in 1997, we also started to report
production and sales figures in short tons instead of metric tons, the reporting
standard of the containerboard industry.
Unless otherwise indicated, our financial information in this Report (and
the Exhibit attached to this Report) has been prepared in accordance with
generally accepted accounting principles in Canada. As described in Note 20 to
our Consolidated Financial Statements for the year-ended December 31, 1998, as
contained in our 1998 Annual Report, those principles differ in certain material
respects from those that we would have followed had our Consolidated Financial
Statements been prepared in accordance with generally accepted accounting
principles in the United States. We filed our Consolidated Financial Statements
for the year-ended December 31, 1998, as contained in our 1998 Annual Report,
with the Commission as Exhibit 43 to our Form 40-F/A filed with the Commission
on June 8, 1999.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements made in this Report (and the Exhibit attached to this
Report) are not historical facts and are "forward-looking" (as defined in the
Private Securities Litigation Reform Act of 1995). Words such as "believes,"
"expects," "estimates," "may," "intends," "will," "should" or "anticipates" and
similar expressions or their negatives identify forward-looking statements.
Forward-looking statements contained in this Report (and the Exhibit attached
to this Report) regarding matters that are not historical facts reflect our
current views about future events and are subject to risks, uncertainties and
assumptions. Such risks, uncertainties and assumptions include the following:
o continued demand for our products,
o industry cyclicality,
o fluctuation in foreign currency exchange rates,
o changes in environmental and other laws or regulations affecting our
operations,
o factors influencing competition in our industry and pricing, and
o industry-wide market factors and other general economic and business
conditions.
Our actual results could differ materially from those indicated, expressed
or implied in such forward-looking statements as a result of these and other
factors, many of which are beyond our control.
<PAGE>
On July 22, 1999 St. Laurent Paperboard Inc. issued a press release announcing
its 2nd Quarter 1999 Financial Results.
Exhibit I -- Press Release, dated July 22, 1999, of St. Laurent Paperboard Inc.
announcing its results for the Second Quarter of 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: July 22, 1999 ST. LAURENT PAPERBOARD INC.
(Registrant)
By: /s/ Richard Garneau
-------------------------------
Name: Richard Garneau
Title: Senior Vice President and
Chief Financial Officer
St. Laurent Paperboard Inc.
<PAGE>
EXHIBIT I
P r e s s R e l e a s e
For immediate release
Cost reduction and revenue enhancements programs are paying off
ST LAURENT PAPERBOARD INC. REPORTS SIGNIFICANT IMPROVEMENT
IN FINANCIAL RESULTS FOR THE SECOND QUARTER OF 1999
MONTREAL, July 22, 1999 - For the second quarter of 1999, St. Laurent
Paperboard Inc. generated net earnings of $6.8 million, or $0.13 per
share, on net sales of $218.6 million, compared to a net loss of
$0.3 million, or $0.01 per share, on net sales of $203.6 million for the
same quarter in 1998.
For the first six months ended June 30, 1999, net earnings increased
to $9.1 million or $0.18 per share, on net sales of $417.0 million,
compared to $0.072 million on net sales of $409.9 million for the same
period in 1998. This increase in profitability in 1999 is mainly
attributable to cost reductions and revenue enhancement initiatives, the
lower value of the Canadian dollar and a higher volume of products sold.
NET SALES
Net sales in the second quarter of 1999 increased to $218.6 million
compared to $203.6 million for the same period in 1998. This improvement
in net sales is attributable to increased shipments of all our products.
Shipments were up 10.3% for corrugated products, 5.6% for paperboard
products and 27.2% for liquid and food products. Net price realizations,
in the second quarter of 1999, were lower for paperboard and liquid and
food products by 1.5% and 1.4% respectively compared to 1998. Net price
realizations for corrugated products were 1.5% higher, compared to the
same period in 1998.
Shipments were higher for all paperboard products in the second quarter.
White top linerboard shipments increased by 19,200 tons, corrugating
medium and kraft linerboard shipments increased by 4,200 and 15,200 tons
respectively, compared to the 1998 corresponding period. Liquid and food
shipments also went up by 3,679 tons in the second quarter, compared to
1998. No shipments of market pulp were made in the second quarter,
compared to 31,700 tons for the corresponding quarter in 1998.
BUSINESS REVIEW
o 8% reduction in primary mills' manufacturing cost
o 8-day outage of the La Tuque bleached board machine for upgrade
o Somewhat lower selling prices compared to the second quarter of 1998
o Higher shipments for all products
o Acquisition of Castle Rock Container increased the Company's
integration level to 48%
<PAGE>
TABLE 1 - KEY FINANCIAL RESULTS
(In millions of US dollars, except per share amounts)
1999 1998 1999
Second Quarter Second Quarter First Quarter
Net sales ..................... 218.6 203.6 198.4
EBITDA ........................ 33.9 24.4 21.1
EBITDA margin - % ............. 15.5% 12.0% 10.7%
Operating earnings ............ 17.3 8.2 4.7
Net earnings (losses) ......... 6.8 (0.3) 2.3
Per share ..................... 0.13 (0.01) 0.05
Note: EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization.
EBITDA margin is the ratio of EBITDA divided by net sales.
TABLE 2 - NET EARNINGS (loss)
(In millions of US dollars)
1998 1998 1998 1999 1999
Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2
Before West Point Mill (0.3) (4.5) (10.6) 2.3 6.8
Restructuring
After West Point Mill (0.3) (12.8) (10.6) 2.3 6.8
Restructing
OPERATING EARNINGS
1999 2nd QUARTER VS 1998 2nd QUARTER
For the second quarter of 1999, operating earnings were $17.3 million compared
to $8.2 million, an increase of $9.2 million compared to 1998. The operating
earnings improvement is mainly attributable to paperboard cash manufacturing
costs which were 8% lower in the second quarter of 1999, compared to the same
quarter in 1998 due to lower fibre costs, the lower value of the Canadian dollar
and lower manufacturing costs at the West Point mill. As a result of the
decision to cease production of bleached hardwood market pulp; to close down a
chip mill and to downsize our marine operations, West Point manufacturing costs,
mostly labour, fibre and other material costs, went down 9% during the quarter,
compared to corresponding 1998 period.
The Company actively manages its Canadian dollar exposure. Canadian dollar
forward contracts, averaging US$0.71 expired during the quarter, while the
actual rate during the quarter was US$0.68, resulting in an opportunity loss of
$0.5 million (including Canadian dollar denominated inventory translation),
compared to a loss of $3.1 million for the corresponding quarter in 1998.
<PAGE>
TABLE 3 - OPERATING EARNINGS VARIANCES
1999 2nd QUARTER VS 1998 2nd QUARTER
(In millions of US dollars)
VARIANCE Positive (Negative)
Mill Converting Other Total
Net price realization
on all products (4.3) 1.9 -- (2.4)
Cost reduction 10.1 (1.1) (0.7) 8.3
Volume increase 0.9 1.2 -- 2.1
Foreign exchange
opportunity loss 2.6 -- -- 2.6
Selling and administration (1.1) (1.9) 2.0 (1.0)
Depreciation (0.3) (0.1) -- (0.4)
Total 7.9 -- 1.3 9.2
1999 2nd QUARTER VS 1999 1st QUARTER
In the second quarter of 1999, operating earnings increased to $17.3 million
compared to $4.7 million in the first quarter, an increase of $12.6 million,
mainly resulting from higher net price realization for paperboard and converting
products totalling $12.0 million and $5.2 million respectively as well as lower
foreign exchange opportunity losses of $0.9 million (including Canadian dollar
denominated inventory translation). Selling and administrative expenses were
$1.4 million higher in the second quarter, mainly attributable to the Castle
Rock Container acquisition. Primary mill costs were down by $1.3 million in the
second quarter of 1999 when compared to the first quarter of 1999.
Table 4 - OPERATING EARNINGS VARIANCES
1999 2nd QUARTER VS 1999 1st QUARTER
(In millions of US dollars)
VARIANCE Positive (Negative)
Mill Converting Other Total
Net price realization
on all products 12.0 5.2 -- 17.2
Cost reduction 1.3 (6.0) 0.3 (4.4)
Volume increase (0.5) 0.9 -- 0.4
Foreign exchange opportunity
loss 0.9 -- -- 0.9
Selling and administration (0.6) (0.8) -- (1.4)
Depreciation -- (0.1) -- (0.1)
Total 13.1 (0.8) 0.3 12.6
LIQUIDITY AND CAPITAL EXPENDITURES
During the second quarter, cash provided by operating activities was
$30.9 million compared to $19.0 million for the corresponding quarter in 1998.
The $11.9 million increase is attributable to higher earnings and to a reduction
of 12,700 tons of paperboard finished goods inventory during the quarter compare
to an inventory increase of 4,600 tons for the same quarter of 1998 which also
contributed to the improvement in liquidity. Capital expenditures were
$11.9 million compared to $15.0 million for the second quarter of 1998.
The decrease in capital expenditures in the second quarter is part of the
Company's program to undertake only indispensable projects to maintain its
facilities while maintaining a conservative capital structure. The Company
closed its $25.5 million acquisition of Castle Rock Container increasing its
integration level by about 3%.
YEAR-2000 COMPLIANCE
Approach St. Laurent Paperboard Inc. initiated its Year 2000 compliance program
("Y2K") under the supervision of a centralized Y2K Project Management
Organization (PMO) in February 1998 with a focus of achieving Y2K readiness for
all Information Technology (IT) and computer controlled process technologies
used in the Company's business. The Company's Y2K compliance program also
includes the assessment of the Y2K readiness of its major suppliers and
customers by contacting them to evaluate their strategies and action plans for
the Y2K transition. To minimize the Y2K risk, contingency plans and rollover
strategies will be deployed as part of the program.
Readiness
The Company's Y2K compliance process involves six steps: inventory,
impact assessment and plan formulation, communications with stakeholders,
remediation, integration testing and finally contingency planning. The first
three phases of this process are completed. The remediation phase is 95%
completed and the integration testing is almost completed and will continue
until year end. For the information technology used by the Company to
control and optimize its manufacturing processes, critical systems were tested
or verified by their manufacturers under the Company's supervision and, where
required, corrective action has been completed. The remediation of the
remaining non-critical items is progressing as planned, is fully funded
and is expected to be completed within the third quarter of 1999.
The Company initiated action under its Y2K program in early 1998 to replace the
order fulfillment, order tracking and invoicing software programs in four of its
converting plants. At this time the Company has successfully replaced three of
the non-compliant systems. The fourth system is scheduled to be operational in
the third quarter of 1999. Order fulfillment and production management systems
at the Company's seven other converting plants and at the four primary mills
have been upgraded to compliant software versions.
<PAGE>
Risk to the Company
St. Laurent Paperboard's primary business consists of manufacturing and
selling paperboard products, and most of our systems are not date
sensitive. For systems where dates are critical, the Company could face
localized interruptions if Y2K issues are not properly resolved. Our main
risk, therefore, would arise if we were temporarily unable to produce and
deliver our products due to interruption of a production unit, the
malfunction of a production management system, or an interruption in
delivery of raw material or services from a critical supplier.
To minimize any possible shutdown of production units, the Company's Y2K
compliance program will continue beyond the remedial phase of the program
with integrated system testing. In addition, critical suppliers of
transportation, raw materials, utilities, payment systems as well as
financial services, government agencies and other critical service
providers, are currently being surveyed by the Company to assess their Y2K
readiness status. As the Company assesses the replies of its suppliers,
contingency plans will be prepared, as required, to minimize the risk of
business interruption to the Company. We anticipate that the assessment of
these suppliers will be completed by the end of the third quarter of 1999.
It is not possible however, to be certain that all aspects of the
Y2K issue affecting the Company, including those related to the
efforts of customers, suppliers, or other third parties, will be fully
resolved.
Contingency planning
Our contingency planning will focus on critical areas of potential
business disruption. Contingency plans are being developed on three
levels: marketplace risk and opportunities, production unit and supply
chain risk, and finally on an item-by-item level. The plans will include
procedures to minimize disruption of critical supply items as well as
procedures to deal with possible production unit failures. Critical
suppliers will be assessed according to the anticipated impact to the
Company should such a supply failure occur and plans will be developed, as
required, to ensure that alternate sources of supply will be readily
available.
Costs
The Company's cost to achieve Y2K compliance is estimated at $6 million.
Of that amount, approximately $3.5 million will be capitalized. At the end
of June, about $2.3 million has been capitalized and $1.8 million has
been expensed.
OUTLOOK
Both the US and Canadian economy continue to show strong growth and it is
expected that they will continue to perform strongly over the next two
quarters. A price increase for white top linerboard and corrugating medium
of $40 and $50 per ton respectively is being implemented effective with
July 1 shipments. Concurrently, a box price increase of 10% to 12% has
been announced and will be gradually implemented in the third quarter.
**************************************
<PAGE>
St. Laurent Paperboard is a major North American producer, supplier and
converter of high-quality, value-added paperboard and packaging products,
with more than 3,700 employees serving a diverse customer base in North
America and selected international markets.
St. Laurent Paperboard owns four primary mills, located in La Tuque and
Matane, Quebec; in Thunder Bay, Ontario; as well as in West Point
Virginia, with an aggregate annual paperboard production capacity
of approximately 1.5 million short tons. It also owns twelve converting
facilities located in Canada and the United States as well as
920,000 acres of forest land, the largest freehold in Quebec.
The Company's common shares are listed on the Toronto and Montreal stock
exchanges under the trading symbol "SPI" as well as on the New York Stock
Exchange (NYSE) under "SLW".
FOR FURTHER INFORMATION:
Mr. Richard Garneau
Senior Vice President and Chief Financial Officer
ST. LAURENT PAPERBOARD INC.
Tel: (514) 864-5102
Website: www.stlaurent.com
<PAGE>
<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS
(unaudited)
(in thousands of US dollars, except per share amounts)
Second quarter ended First quarter ended 6 months ended
June 30 March 31 June 30
1999 1998 1999 1999 1998
--------------------------- -------------------------- ---------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 236,184 $ 220,636 $ 216,475 $ 452,659 $ 444,845
Cost of delivery 17,565 17,073 18,051 35,616 34,931
---------------------------- -------------------------- ---------------------------
Net sales 218,619 203,563 198,424 417,043 409,914
---------------------------- -------------------------- ---------------------------
Cost of sales 170,584 166,038 164,592 335,176 334,804
Selling and administrative 14,092 13,082 12,687 26,779 25,560
expenses
Amortization 16,598 16,257 16,435 33,033 32,045
---------------------------- -------------------------- ---------------------------
201,274 195,377 193,714 394,988 392,409
---------------------------- -------------------------- ---------------------------
Operating earnings 17,345 8,186 4,710 22,055 17,505
Interest expense, net 6,517 7,168 7,057 13,574 14,937
Other expense (income) 630 3 (4,816) (4,186) (10)
---------------------------- -------------------------- ---------------------------
Earnings before income taxes 10,198 1,015 2,469 12,667 2,578
Provision for income taxes 3,550 1,294 479 4,029 2,506
---------------------------- -------------------------- ---------------------------
6,648 (279) 1,990 8,638 72
Earnings from equity investment 180 - 285 471 -
---------------------------- -------------------------- ---------------------------
Net earnings (loss) 6,834 (279) 2,275 9,109 72
---------------------------- -------------------------- ---------------------------
Net earnings (loss) per common
share
Basic 0.13 (0.01) 0.05 0.18 0.00
----------------------------- -------------------------- ---------------------------
Fully diluted $ 0.13 $ ( * ) $ 0.05 $ 0.18 $ 0.00
----------------------------- -------------------------- ---------------------------
Retained earnings at
beginning of period $ 4,044 $ 25,383 $ 1,769 1,769 25,032
Net earnings (loss) 6,834 (279) 2,275 9,109 72
----------------------------- -------------------------- ---------------------------
Retained earnings
at end of period $ 10,878 $ 25,104 $ 4,044 10,878 25,104
----------------------------- -------------------------- ---------------------------
Weighted average number of
outstanding common shares
(in thousands) 49,310 49,081 49,264 49,287 49,056
----------------------------- -------------------------- ---------------------------
* Anti-dilutive
</TABLE>
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<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
CONSOLIDATED STATEMENT OF CHANGES IN CASH POSITION
(unaudited)
(in thousands of US dollars)
Second quarter ended First quarter ended 6 months ended
June 30 March 31 June 30
1999 1998 1999 1999 1998
------------------------------------------------------------------------------ ------------------- ------------------------
Cash provided by (used in)
Operating activities
<S> <C> <C> <C> <C> <C>
Net earnings (loss) $ 6,834 $ (279) $ 2,275 9,109 $ 72
Items not involving cash
Amortization of property, plant and equipment,
deferred costs and goodwill 16,598 16,257 16,435 33,033 32,045
Amortization of debt issue costs 311 379 399 710 605
Future income taxes 3,011 1,051 185 3,196 1,679
Gain on sale of property, plant and equipment - - (4,553) (4,553) (235)
Other (64) (369) (222) (286) (649)
Start-up and other deferred costs incurred (587) 888 (691) (1,278) 841
Post retirement expense, net of funding 665 421 1,041 1,706 1,195
Earnings from equity investment (186) - (285) (471) -
---------------------- ------------------- ------------------------
26,582 18,348 14,584 41,166 35,553
Change in non-cash working capital
relating to operations
Accounts receivable (495) 5,299 (9,675) (10,170) 6,235
Inventory 2,419 (2,861) 8,346 10,765 (3,120)
Prepaid expenses (2,914) 806 1,465 (1,449) (4,491)
Accounts payable and accruals 5,605 (3,679) 11,091 16,696 167
Income and other taxes payable (306) 1,128 (42) (348) 615
---------------------- ------------------- ------------------------
4,309 693 11,185 15,494 (594)
---------------------- ------------------- ------------------------
Cash provided by operating activities 30,891 19,041 25,769 56,660 34,959
---------------------- ------------------- ------------------------
Investing activities
Equity investment - - (9,607) (9,607) -
Business acquisitions 25,483) - - (25,483) -
Additions to property, plant and equipment 11,930) (14,981) (6,204) (18,134) (27,952)
Proceeds from disposals of property, plant
and equipment - - 5,655 5,655 235
---------------------- ------------------- ------------------------
37,413) (14,981) (10,156) (47,569) (27,717)
---------------------- ------------------- ------------------------
Financing activities
Issuance of common shares, net of expenses 390 789 333 723 1,269
Redemption of common shares - - - - (242)
Issuance of long-term debt 66 136 70 136 230,136
Repayment of long-term debt (22) (65) (24) (46) (241,486)
Debt issue costs (583) (763) (127) (710) (4,581)
Cash held in escrow - - - - 11,000
---------------------- ------------------- ------------------------
(149) 97 252 103 (3,904)
---------------------- ------------------- ------------------------
Increase (decrease) in cash (6,671) 4,157 15,865 9,194 3,338
Cash and cash equivalents at beginning of period 12,346 12,621 (3,519) (3,519) 13,440
---------------------- ------------------- ------------------------
Cash and cash equivalents at end of period $ 5,675 $ 16,778 $ 12,346 $ 5,675 $ 16,778
---------------------- ------------------- ------------------------
Cash and cash equivalents
Cash on hand (indebtedness) (475) 8,955 6,713 (475) 8,955
Temporary investments 6,150 7,823 5,633 6,150 7,823
----------------------- -------------------- ------------------------
$ 5,675 $ 16,778 $ 12,346 $ 5,675 $ 16,778
----------------------- -------------------- ------------------------
</TABLE>
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<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands of US dollars)
June 30
1999 1998
------------------------------------------------------------------------------------
ASSETS
Current assets
<S> <C> <C>
Cash and temporary investments $ 5,675 $ 16,778
Accounts receivable 109,079 100,337
Income and other taxes receivable 5,218 4,378
Inventories 93,088 99,720
Prepaid expenses 15,281 10,170
---------------------------------
228,341 231,383
Property, plant and equipment 780,894 784,542
Future income taxes 7,890 1,632
Deferred charges and other assets 42,068 32,552
Goodwill 19,374 20,481
---------------------------------
$ 1,078,567 $1,070,590
---------------------------------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 89,361 79,868
Current portion of long-term debt 17,427 294
---------------------------------
106,788 80,162
Long-term debt 345,204 362,298
Future income taxes 9,012 9,400
Other liabilities 31,620 20,031
SHAREHOLDERS' EQUITY
Common shares 572,657 571,187
Contributed surplus 2,408 2,408
Retained earnings 10,878 25,104
---------------------------------
585,943 598,699
---------------------------------
$ 1,078,567 $ 1,070,590
---------------------------------
</TABLE>
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<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
SEGMENTED INFORMATION
(unaudited)
(in thousands of US dollars) Second quarter ended 6 months ended
June 30 June 30
1999 1998 1999 1998
------------------------ -------------------------
Net sales to third parties
From Canada
<S> <C> <C> <C> <C>
Within Canada $ 34,231 $ 35,943 $ 61,469 $ 66,026
To the United States 52,818 36,267 98,343 75,452
Other 6,458 10,137 17,044 21,715
------------------------ -------------------------
$ 93,507 $ 82,347 $ 176,856 $163,193
From the United States 125,112 121,216 240,187 246,721
------------------------ -------------------------
$ 218,619 $ 203,563 $ 417,043 $409,914
------------------------ -------------------------
Intercompany sales between geographic areas
From Canada $ 4,779 $ 2,711 $ 7,797 $ 4,475
From the United States 266 712 491 955
------------------------ -------------------------
$ 5,045 $ 3,423 $ 8,288 $ 5,430
------------------------- -------------------------
Operating earnings (loss)
Canada $ 9,844 $ 986 $ 12,493 $ 5,137
United States 7,501 7,200 9,562 12,368
------------------------ -------------------------
$ 17,345 $ 8,186 $ 22,055 $ 17,505
------------------------ -------------------------
Identifiable assets
Canada $ 443,325 $441,110
United States $ 635,242 $629,480
-------------------------
$1,078,567 $1,070,590
-------------------------
</TABLE>
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<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
SUMMARY OF OPERATIONS
(unaudited)
(in thousands of US dollars, except for units)
Woodlands,
Solid Wood
Primary and unallocated
Second Quarter ended June 30, 1999 mills Converting amounts Total
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales to third parties $ 128,003 $ 85,941 $ 4,675 $ 218,619
Inter-segment sales 19,441 - - $ 19,441
-------------------------------------------------------------
Total $ 147,444 $ 85,941 $ 4,675 $ 238,060
EBITDA 29,180 5,008 (245) 33,943
Amortization 14,035 2,162 401 16,598
Operating earnings (loss) 15,145 2,846 (646) 17,345
Identifiable assets 766,532 232,083 79,952 1,078,567
Additions to property, plant and equipment 7,278 4,644 8 11,930
Sales to third parties (short tons) 337,229 - -
Sales to third parties - corrugated containers (MMSF) - 1,304 -
Sales to third parties - liquid and food (short tons) - 17,183 -
Inter-segment sales (short tons) 49,822 - -
Woodlands,
Solid Wood
Primary and unallocated
Second Quarter ended June 30, 1998 mills Converting amounts Total
- ----------------------------------------------------------------------------------------------------------------------------
Net sales to third parties $ 123,721 $ 75,411 $ 4,431 $ 203,563
Inter-segment sales 22,400 - - 22,400
-------------------------------------------------------------
Total $ 146,121 $ 75,411 $ 4,431 $ 225,963
EBITDA 20,984 4,989 (1,530) 24,443
Amortization 13,715 2,100 442 16,257
Operating earnings (loss) 7,269 2,889 (1,972) 8,186
Identifiable assets 825,205 186,364 59,021 1,070,590
Additions to property, plant and equipment 11,498 2,681 802 14,981
Sales to third parties (short tons) 319,367 - -
Sales to third parties - corrugated containers (MMSF) - 1,182 -
Sales to third parties - liquid and food (short tons) - 13,504 -
Inter-segment sales (short tons) 59,542 - -
</TABLE>
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<TABLE>
<CAPTION>
ST. LAURENT PAPERBOARD INC.
SUMMARY OF OPERATIONS - YEAR TO DATE
(unaudited)
(in thousands of US dollars, except for units)
Woodlands,
Solid Wood
Primary and unallocated
Six months ended June 30, 1999 mills Converting amounts Total
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales to third parties $ 247,524 $ 161,212 $ 8,307 $ 417,043
Inter-segment sales 37,779 - - 37,779
-------------------------------------------------------------
Total $ 285,303 $ 161,212 $ 8,307 $ 454,822
EBITDA 45,232 10,637 (781) 55,088
Amortization 28,029 4,196 808 33,033
Operating earnings (loss) 17,203 6,441 (1,589) 22,055
Identifiable assets 766,532 232,083 79,952 1,078,567
Additions to property, plant and equipment 11,061 6,890 183 18,134
Sales to third parties (short tons) 686,726 - -
Sales to third parties - corrugated containers (MMSF) - 2,570 -
Sales to third parties - liquid and food (short tons) - 33,367 -
Inter-segment sales (short tons) 101,176 - -
</TABLE>
<TABLE>
<CAPTION>
Woodlands,
Solid Wood
Primary and unallocated
Six months ended June 30, 1998 mills Converting amounts Total
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales to third parties $ 252,484 $ 147,725 $ 9,705 $ 409,914
Inter-segment sales 42,555 - - 42,555
-------------------------------------------------------------
Total $ 295,039 $ 147,725 $ 9,705 $ 452,469
EBITDA 42,700 8,936 (2,086) 49,550
Amortization 27,261 3,905 879 32,045
Operating earnings (loss) 15,439 5,031 (2,965) 17,505
Identifiable assets 825,205 186,364 59,021 1,070,590
Additions to property, plant and equipment 19,171 7,848 933 27,952
Sales to third parties (short tons) 644,398 - -
Sales to third parties - corrugated containers (MMSF) - 2,276 -
Sales to third parties - liquid and food (short tons) - 27,375 -
Inter-segment sales (short tons) 110,618 - -
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