Mercer International Inc. (NASDAQ:MERC) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET Company Participants Juan Carlos Beuno - President and Chief Executive Officer David Ure - Senior Vice President, Finance, Chief Financial Officer and Secretary Conference Call Participants Sean Stewart - TD securities Hamir Patel - CIBC Capital Markets Andrew Kuske - Credit Suisse Matthew McKellar - RBS Capital Markets Dennis Collins - Stifel Operator Hello and welcome to Mercer International???s Third Qua ...

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, 2022 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 ot ...

Mercer International, Inc. (NASDAQ:MERC) Q2 2022 Results Conference Call July 29, 2022 11:00 AM ET Company Participants Juan Carlos - President & CEO David Ure - EVP, CFO & Secretary Conference Call Participants Roger Spitz - Bank of America Andrew Kuske - Credit Suisse Jeff Gates - Gates Capital Management Paul Quinn - RBC Capital Markets Operator Good morning, and welcome to Mercer International's Second Quarter 2022 Earnings Conference Call. On the call today is Juan Carlos, 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, 2022 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 2022 Earnings Conference Call April 29, 2022 10:00 AM ET Company Participants David Gandossi - President, CEO & Director David Ure - EVP, CFO & Secretary Conference Call Participants Hamir Patel - CIBC Capital Markets Andrew Kuske - Cr??dit Suisse Andrew Shapiro - Lawndale Capital Management Matthew McKellar - RBC Capital Markets Kasia Kopytek - TD Securities Operator Good morning, and welcome to Mercer International's Fourth Quarter 2021 Earnings Conference Call. ...

Financial Performance - Total revenues for the first quarter of 2022 increased by approximately 44% to a record $592.7 million from $412.7 million in the same quarter of 2021, primarily due to higher sales realizations, pulp sales volumes, and energy sales [97]. - Net income for the first quarter of 2022 was $88.9 million, or $1.35 per basic share, compared to net income of $5.9 million, or $0.09 per share, in the same quarter of 2021 [105]. - Operating EBITDA increased by approximately 88% to $154.5 million from $82.0 million in the same quarter of 2021, driven by higher sales realizations and pulp sales volumes [106]. - Cash provided by operating activities was $68.8 million in Q1 2022 compared to $30.3 million in Q1 2021 [128]. - Capital expenditures in Q1 2022 were $33.3 million, primarily related to upgrades at Canadian mills [129]. - As of March 31, 2022, cash and cash equivalents were $410.7 million, with total assets of $2,456.9 million [132]. Revenue Breakdown - Pulp segment revenues reached $485.9 million, up from $339.8 million, while wood products segment revenues increased to $101.0 million from $71.0 million [93]. - Energy and chemical revenues increased by 76% to $46.2 million from $26.3 million, primarily due to higher energy prices in Germany, which were more than double those in the same quarter of 2021 [98]. - Lumber revenues increased by approximately 37% to a record $92.4 million in Q1 2022 from $67.3 million in Q1 2021 [120]. - Average NBSK pulp sales realizations increased by approximately 22% to $812 per ADMT in Q1 2022 from approximately $668 per ADMT in Q1 2021 [114]. - Average lumber sales realizations increased by approximately 35% to $840 per Mfbm in Q1 2022 from approximately $622 per Mfbm in Q1 2021 [123]. Production and Sales Volumes - Pulp production increased by approximately 3% to 492,288 ADMTs, while pulp sales volumes rose to 505.1 ADMTs from 418.6 ADMTs in the same quarter of 2021 [110]. - Total pulp sales volumes increased by approximately 14% to 555,035 ADMTs in Q1 2022 from 487,678 ADMTs in Q1 2021 [112]. - The company anticipates continued upward pricing pressure on pulp prices due to current supply-demand dynamics, while lumber prices are expected to remain at historically strong levels [88]. Costs and Expenses - Costs and expenses increased by approximately 30% to $470.4 million, primarily due to higher per unit fiber costs and energy, freight, and chemical costs [99]. - Costs and expenses in Q1 2022 increased by approximately 27% to $399.7 million from $314.6 million in Q1 2021 [116]. - The company expects per unit fiber costs to increase in Q2 2022 due to continued strong demand [117]. Market Dynamics - The pulp and lumber markets are highly cyclical, with prices influenced by global economic conditions, industry capacity, and foreign exchange rates [159]. - The company is exposed to fluctuations in prices and demand for lumber, which could adversely impact its operations [154]. - Oversupply in the pulp and lumber markets can prolong weak pricing environments, affecting the company's operating results [160]. - The company's profitability is significantly affected by raw material costs, which are subject to cyclical fluctuations [165]. - The company operates in a highly cyclical industry, with revenues affected by global economic conditions, industry capacity, and foreign exchange rates, leading to potential price volatility [159]. Risks and Compliance - The ongoing COVID-19 pandemic poses risks that could materially affect the company's business and financial position [154]. - The company faces intense competition in the forest products industry, which could adversely affect its ability to compete [154]. - The company relies on third parties for transportation services, which could disrupt operations if issues arise [156]. - The company may incur substantial costs due to compliance with environmental regulations, which could impact financial results [156]. - The company faces risks related to compliance with trade and export laws, which could adversely impact operations [157]. - Changes in credit ratings could adversely affect the company's cost of financing and market price of its securities [156]. Currency and Pricing Fluctuations - Currency fluctuations can adversely affect the company's operating margins, as costs in Germany and Canada are incurred in euros and Canadian dollars, respectively, while sales are primarily in dollars [166]. - The dollar strengthened by approximately 2% against the euro and weakened by approximately 1% against the Canadian dollar since December 31, 2021 [146]. - The company's sales prices are net of customer discounts and rebates, which can affect overall revenue realization [163]. Sustainability and Standards - The company voluntarily complies with internationally recognized sustainable management standards, which are increasingly important to customers [162]. - The company recorded a net non-cash decrease of $10.5 million in the carrying value of net assets due to foreign currency fluctuations [145].

Financial Data and Key Metrics Changes - The company achieved record EBITDA in Q4 2021 of almost $165 million, compared to approximately $148 million in Q3 2021 [8] - For the full year 2021, record EBITDA totaled almost $479 million, exceeding the previous record by over $100 million [9] - Net income for Q4 was $74.5 million, or $1.13 per basic share, compared to $69 million, or $1.05 per share in Q3 [14] - Cash generated in Q4 was approximately $7 million, a significant improvement from cash used of $46 million in Q3 [15] Business Segment Data and Key Metrics Changes - The pulp segment contributed record quarterly EBITDA of roughly $143 million, while the wood products segment contributed almost $24 million [8] - Q4 sales totaled almost 516,000 tons, an increase of about 68,000 tons from Q3 [11] - Lumber realizations were mixed, with U.S. benchmark prices averaging $711 per 1,000 board feet in Q4, up $217 from Q3, while European sales realizations decreased by approximately $44 per 1,000 board feet [12] Market Data and Key Metrics Changes - Average NBSK net price in China for Q4 was $723 per ton, down $109 from Q3, while European list prices averaged $1,302 per ton, down from $1,345 per ton in Q3 [9][10] - Pulp demand remained strong, but average pulp prices fell modestly in Q4 due to negative market sentiment [28] - The company experienced higher fiber prices in Canada and Germany, along with increased freight costs due to extreme weather and supply chain issues [6][33] Company Strategy and Development Direction - The company is focused on maintaining world-class assets and diversifying its product offerings, including mass timber and engineered wood products [25][43] - Plans for 2022 include an ambitious capital expenditure program of approximately $175 million, targeting high-return projects [44] - The company aims to optimize its mix of lumber products and customers to achieve sustainable realizations [33] Management's Comments on Operating Environment and Future Outlook - Management noted that high energy prices in Europe are a significant factor, with expectations for continued upward pricing pressure in the pulp market due to supply chain restrictions [34][36] - The company anticipates strong lumber demand driven by positive homebuilder sentiment, despite potential mortgage rate increases [31] - Management expressed confidence in the company's ability to generate strong cash flow and shareholder value through its growth strategy [50] Other Important Information - The company settled a business interruption insurance claim related to the Peace River mill, which positively impacted Q4 EBITDA by about $32 million [7] - A 15% quarterly dividend increase was approved, raising it to $0.075 per share for shareholders of record on March 30, 2022 [20] - The company has entered into a new C$160 million revolving credit facility for its Canadian operations, enhancing financial flexibility [19] Q&A Session Summary Question: Can you provide context on chemical costs for pulp mills? - Management indicated that there have not been material changes in chemical costs in 2021, but inflationary pressure is expected in 2022 [57] Question: Can you quantify the business interruption insurance claim related to the Rosenthal generator? - Management clarified that the generator's downtime negatively impacted EBITDA by approximately $41 million for the year, and the insurance claim is complex and still under discussion [58][59] Question: Are logistics improving? - Management noted improvements at the Celgar mill, but challenges remain at the Peace River mill due to logistics issues, which are expected to resolve in the coming months [61] Question: What is the status of energy prices in Europe? - Management reported a significant increase in energy prices, with gray market rates rising dramatically, which will positively impact revenues [63] Question: What are the acquisition opportunities in pulp or lumber? - Management stated that the focus is on lumber and mass timber, with no current plans to pursue pulp mill acquisitions [64][65] Question: What is the current status of the Mercer Mass Timber operation? - Management indicated that the operation is ramping up and is not a burden on the company, with expectations for a good internal rate of return [68][69] Question: What are the plans for investor relations activities? - Management plans to enhance ESG communication and engage more with retail and family office investors [77][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K | For the fiscal year ended December 31, 2021 | | | | --- | --- | --- | | 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 | | (IRS Employer ...

Sustainable. By Design. 1 January, 2022 Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this presentation contains statements that are forwardlooking, such as statements relating to results of operations and financial conditions, market expectations and business development activities, as well as capital spending and financing sources. Such forward-looking information involves important r ...

Mercer International Inc. (NASDAQ:MERC) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants David M. Gandossi - President and CEO David K. Ure - SVP, Finance, CFO, and Secretary Conference Call Participants Hamir Patel - CIBC Capital Markets Sean Steuart - TD Securities Marcus Campeau - RBC Capital Markets DeForest Hinman - Walthausen & Company Andrew Shapiro - Lawndale Capital Roger Spitz - Bank of America Operator Good morning and welcome to Mercer International???s Third Qu ...