Mercer International Inc. (NASDAQ:MERC) Q4 2023 Earnings Call Transcript February 16, 2024 10:00 AM ET Company Participants Richard Short - CFO & Secretary Juan Carlos Bueno - President & CEO Conference Call Participants Hamir Patel - CIBC Capital Markets Richard Stevens - Amundi USA Kasia Trzaski Kopytek - TD Securities Sam McGovern - UBS Operator Good morning and welcome to the Mercer International's Fourth Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, Mercer's President a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 of incorporation or organization) Sui ...

Mercer International Inc. (NASDAQ:MERC) Q3 2023 Earnings Conference Call November 3, 2023 10:00 AM ET Company Participants Richard Short - Chief Financial Officer Juan Carlos Bueno - President and Chief Executive Officer Conference Call Participants Hamir Patel - CIBC Capital Markets Matthew McKellar - RBC Capital Markets Sam McGovern - UBS Group AG Operator Good morning, and welcome to Mercer International’s Third Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, Mercer’s Presi ...

Financial Performance - Total revenues for Q3 2023 decreased by approximately 12% to $470.8 million from $532.8 million in Q3 2022, primarily due to lower pulp, energy, and lumber sales realizations [120]. - Net loss for Q3 2023 was $25.96 million, compared to net income of $66.75 million in Q3 2022, resulting in a diluted loss per share of $0.39 [116]. - Total operating income for Q3 2023 was a loss of $3.43 million, down from an operating income of $108.72 million in Q3 2022 [116]. - Operating EBITDA decreased to $37.5 million in Q3 2023 from $140.9 million in Q3 2022, primarily due to lower pulp, energy, and lumber sales realizations [127]. - For the nine months ended September 30, 2023, the company reported an Operating EBITDA of negative $3.7 million, a significant decline from positive $440.4 million in the same period of 2022, primarily due to lower sales realizations and higher costs [160]. - Cash used in operating activities was $60.3 million in the nine months ended September 30, 2023, compared to cash provided of $310.0 million in the same period of 2022 [186]. Revenue Breakdown - Pulp segment revenues for Q3 2023 were $348.9 million, down from $456.7 million in Q3 2022, while solid wood segment revenues increased to $119.5 million from $74.3 million [116]. - Pulp revenues decreased by approximately 20% to $318.1 million in Q3 2023 from $395.5 million in Q3 2022, attributed to lower sales realizations [130]. - Energy and chemical revenues fell by approximately 50% to $30.8 million in Q3 2023 from $61.2 million in Q3 2022 due to lower sales realizations [131]. - Pulp segment revenues decreased by approximately 16% to $1,061.9 million in the nine months ended September 30, 2023, down from $1,260.9 million in the same period of 2022, reflecting weak market conditions [163]. - Energy and chemical revenues in the pulp segment fell by approximately 37% to $90.0 million in the nine months ended September 30, 2023, compared to $141.9 million in the same period of 2022 [163]. - The solid wood segment revenues increased by approximately 26% to $366.6 million in the nine months ended September 30, 2023, from $290.0 million in the same period of 2022, driven by the inclusion of Torgau and ramping up mass timber operations [176]. Costs and Expenses - Costs and expenses in the nine months ended September 30, 2023 increased by approximately 22% to $1,655.7 million from $1,352.8 million in the same period of 2022, primarily due to the inclusion of Torgau [154]. - In Q3 2023, transportation costs increased by approximately 46% to $13.9 million from $9.5 million in Q3 2022, primarily due to higher sales volume [151]. - Transportation costs for the solid wood segment increased by approximately 44% to $48.0 million in the nine months ended September 30, 2023, from $33.4 million in the same period of 2022, primarily due to higher sales volumes [184]. Acquisitions and Investments - The company acquired Structurlam Mass Timber Corporation for $82.1 million on June 15, 2023, enhancing its mass timber production capabilities [109]. - Investing activities used cash of $179.7 million in the nine months ended September 30, 2023, primarily for capital expenditures of $110.3 million and acquisition costs of $82.1 million for mass timber assets [187]. - Capital expenditures for the nine months ended September 30, 2023, were $110.3 million, down from $128.9 million in the same period of 2022, a decrease of approximately 14.4% [192]. - The company expects capital expenditures for fiscal 2023 to be between $130 million and $150 million, indicating a reduction from previous plans [194]. Market Conditions and Outlook - The company expects modest improvements in pulp sales realizations in Q4 2023 due to increasing demand in China and reduced supply from curtailments [112]. - Demand for pulp and lumber is closely tied to global macro-economic conditions and can be volatile [223]. - The company faces risks from cyclical fluctuations in raw material prices, particularly fiber, which could adversely affect profitability [216]. Financial Position - Total assets decreased to $2,655.0 million as of September 30, 2023, down from $2,725.0 million as of December 31, 2022, a decline of approximately 2.6% [190]. - Long-term liabilities increased to $1,721.7 million as of September 30, 2023, up from $1,508.2 million as of December 31, 2022, reflecting a rise of about 14.1% [190]. - Cash and cash equivalents stood at $343.7 million as of September 30, 2023, with approximately $304.7 million available under revolving credit facilities, resulting in total liquidity of about $648.4 million [193]. - The company believes that cash flow from operations and available cash will be adequate to finance capital requirements and pay quarterly dividends over the next 12 months [196]. Credit Ratings and Financial Risks - S&P downgraded the company's senior notes rating to B from B+ in September 2023, with a negative outlook, while Moody's downgraded its rating to B2 from Ba3 [207]. - A non-cash decrease of $7.6 million in the carrying value of net assets denominated in euros was recorded due to the strengthening of the dollar as of September 30, 2023 [205]. - A decrease in the dollar's value relative to the euro and Canadian dollar adversely affects operating margins and cash flow [229]. - Such declines could materially impact the company's business, financial condition, and results of operations [229].

Mercer International Inc. (NASDAQ:MERC) Q2 2023 Earnings Call Transcript August 4, 2023 10:00 AM ET Company Participants Richard Short - Chief Financial Officer Juan Carlos Bueno - President and CEO Conference Call Participants Sean Stewart - TD Securities Matthew McKellar - RBC Cole Hathorn - Jefferies CJ Baldoni - Principal Operator Good morning and welcome to Mercer International's Second Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, Mercer's President and Chief Executive ...

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, 2023 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 j ...

Mercer International Inc. (NASDAQ:MERC) Q1 2023 Earnings Conference Call May 5, 2023 10:00 AM ET Company Participants David Ure - SVP, Finance and CFO Juan Carlos Bueno - President and CEO Conference Call Participants Sean Stewart - TD Securities Paul Quinn - RBC Capital Markets Hamir Patel - CIBC Capital Markets Richard Stevens - Momenta Operator Good morning and welcome to Mercer International’s First Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, President and Chief Execut ...

Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from _______ to _______ Commission File No.: 000-51826 MERCER INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington 47-0956945 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by chec ...

Mercer International Inc. (NASDAQ:MERC) Q4 2022 Earnings Conference Call February 17, 2023 10:00 AM ET Company Representatives Juan Carlos Bueno - President, Chief Executive Officer David Ure - Senior Vice President, Finance, Chief Financial Officer and Secretary Conference Call Participants Kasia Kopytek - TD Securities Paul Quinn - RBC Capital Markets Andrew Kuske - Credit Suisse Operator Good morning and welcome to Mercer International???s, Fourth Quarter 2022 Earnings Conference Call. On the call today ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION | | CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | 1 | | --- | --- | --- | | INDUSTRY AND MARKET DATA | | 1 | | | INTERNET AVAILABILITY AND ADDITIONAL INFORMATION | 1 | | CURRENCY | | 2 | | PART I | | 3 | | ITEM 1. | BUSINESS | 3 | | | Mercer | 3 | | | Corporate Strategy | 7 | | | The Pulp Industry | 8 | | | Solid Wood Industry | 11 | | | Generation and Sales of Green Energy and Chemicals | 12 | | | Production Costs | 14 | | | Sales, Marketing and Dis ...