Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Domtar Corporation Reports Preliminary First Quarter 2013 Financial Results



 Domtar Corporation Reports Preliminary First Quarter 2013 Financial Results

PR Newswire

MONTREAL, April 25, 2013

Benefits of higher paper volumes and pulp prices compared to fourth quarter
offset by higher production costs
(All financial information is in U.S. dollars, and all earnings per share
results are diluted, unless otherwise noted.)

  * First quarter 2013 net earnings of $1.29 per share, earnings before
    items^1 of $0.95 per share
  * Inaugurated a commercial-scale lignin removal plant at the Plymouth, NC
    mill
  * Personal Care volumes up 7% when compared to pro forma first quarter 2012
  * Share buyback totaled $47 million in the first quarter of 2013

TICKER SYMBOL
(NYSE: UFS) (TSX: UFS)

MONTREAL, April 25, 2013 /PRNewswire/  - Domtar Corporation (NYSE: UFS)  (TSX: 
UFS) today reported  net earnings  of $45 million  ($1.29 per  share) for  the 
first quarter  of 2013  compared to  net earnings  of $19 million  ($0.54  per 
share) for  the  fourth  quarter  of 2012  and  net  earnings  of  $28 million 
($0.76 per share) for the first quarter  of 2012. Sales for the first  quarter 
of 2013 amounted to $1,345 million.

Excluding items listed below, the Company  had earnings before items^1 of  $33 
million ($0.95 per share) for the  first quarter of 2013 compared to  earnings 
before items^1 of $46 million ($1.31 per share) for the fourth quarter of 2012
and earnings before  items^1 of $61 million  ($1.65 per share)  for the  first 
quarter of 2012.

First quarter 2013 items:

  * Conversion of $26 million ($18 million after tax) of alternative fuel tax
    credits into cellulosic biofuel producer income tax credits of $55 million
    ($33 million after tax) resulting in a net gain after tax of $15 million;
  * Charge of $10 million ($7 million after tax) related to the impairment and
    write-down of property, plant and equipment;
  * Gain on the sale of property, plant and equipment of $10 million ($6
    million after tax); and
  * Premium paid and costs related to the debt repurchase of $3 million ($2
    million after tax), included in interest expense.

Fourth quarter 2012 items:

  * Closure and restructuring costs of $27 million ($18 million after tax);
  * Charge of $12 million ($8 million after tax) related to the impairment and
    write-down of property, plant and equipment and intangible assets; and
  * Net losses on the sale of property, plant and equipment of $2 million ($1
    million after tax).

First quarter 2012 items:

  * Premium paid and costs related to the debt repurchase of $50 million ($30
    million after tax), included in interest expense;
  * Closure and restructuring costs, including write-down of property, plant
    and equipment, of $3 million ($2 million after tax); and
  * Negative impact of purchase accounting of $1 million ($1 million after
    tax).

"The first quarter results in our  paper business were disappointing and  this 
is due to low productivity, resulting  in high costs," said John D.  Williams, 
President and Chief Executive Officer.  "While we benefited from better  paper 
pricing than we expected, the reconfiguration of our Marlboro, South  Carolina 
operations resulted in multiple paper grade transfers, upsetting  productivity 
at several of our  paper mills. We  anticipate a return  to a more  normalized 
productivity in the quarters to come."  John D. Williams added, "Our  personal 
care business remains  on track and  the capital investments  should start  to 
deliver the expected benefits towards the end of 2013."

QUARTERLY REVIEW

Operating income before items^1 was $75 million  in the first quarter of  2013 
compared to an operating  income before items^1 of  $84 million in the  fourth 
quarter of  2012. Depreciation  and amortization  totaled $95  million in  the 
first quarter of 2013.

(In millions of dollars)          1Q 2013   4Q 2012
Sales                              $1,345    $1,327
Operating income (loss)                            
      Pulp and Paper segment           39        40
      Distribution segment            (1)       (8)
      Personal Care segment            13        13
      Corporate                       (2)       (2)
      Total                            49        43
Operating income before items^1        75        84
Depreciation and amortization          95        96

The decrease in operating income before  items^1 in the first quarter of  2013 
was the result of higher usage for energy and chemicals, higher unit costs for
fiber, lower average selling prices for paper, higher general production costs
and higher  selling,  general and  administrative  and other  expenses.  These 
factors were partially  offset by higher  volumes for paper,  lower costs  for 
planned maintenance, higher average  selling prices for  pulp and a  favorable 
exchange rate.

When compared to the  fourth quarter of 2012,  paper shipments increased  2.9% 
and pulp shipments decreased 3.4%. Paper deliveries of Ariva^® increased  9.8% 
when compared to the fourth quarter of 2012. The shipments-to-production ratio
for paper was 104% in the first quarter of 2013, compared to 97% in the fourth
quarter of  2012.  Lack-of-order  downtime and  machine  slowdowns  in  papers 
totaled 8,000  short tons  in the  first quarter  of 2013.  Paper  inventories 
decreased by 34,000  tons while  pulp inventories increased  by 16,000  metric 
tons at the end of March, compared to December levels.

LIQUIDITY AND CAPITAL

Cash flow  provided from  operating  activities amounted  to $63  million  and 
capital expenditures amounted to $56 million, resulting in free cash flow^1 of
$7  million  for  the  first  quarter  of  2013.  Domtar's  net  debt-to-total 
capitalization ratio^1  stood at  18% at  March 31,  2013 compared  to 16%  at 
December 31, 2012.

Domtar returned  a  total  of  $63  million  to  its  shareholders  through  a 
combination of dividend and share buybacks in the first quarter of 2013. Under
its stock repurchase program, Domtar  repurchased a total of 9,266,503  shares 
of common stock at an average price of $79.87 since the implementation of  the 
program in May 2010. At the end of the first quarter of 2013, Domtar had  $258 
million remaining under this program.

OUTLOOK

We expect  continued momentum  in pulp  markets with  moderate improvement  in 
pricing and steady  shipments. In  papers, our  volumes are  expected to  stay 
relatively similar to the first quarter  in the near term. The second  quarter 
will be affected by  the usual seasonal higher  maintenance activity in  pulp, 
while input costs are expected to decline slightly, notably due to lower usage
of energy.

EARNINGS CONFERENCE CALL

The Company will hold a  conference call today at  10:00 a.m. (ET) to  discuss 
its first quarter 2013  financial results. Financial  analysts are invited  to 
participate in the call  by dialing at  least 10 minutes  before start time  1 
(866)  321-8231   (toll  free   -   North  America)   or  1   (416)   642-5213 
(International), while media and other  interested individuals are invited  to 
listen  to   the  live   webcast  on   the  Domtar   Corporation  website   at 
www.domtar.com.

The Company will hold  its 2013 Annual Meeting  of Stockholders on  Wednesday, 
May 1^st, 2013 at 9:00 a.m. (ET)  at the Montreal Museum of Fine Arts,  Claire 
and Marc Bourgie Pavilion, 1339 Sherbrooke Street West, Montreal, Quebec.  The 
Company will release its second quarter 2013 earnings on July 25, 2013  before 
markets open, followed  by a  conference call at  10:00 a.m.  (ET) to  discuss 
results. The date is tentative and will be confirmed approximately three weeks
prior to the official earnings release date.

                             -------------------

About Domtar
Domtar Corporation (NYSE: UFS) (TSX:  UFS) designs, manufactures, markets  and 
distributes a  wide variety  of fiber-based  products including  communication 
papers, specialty and  packaging papers and  adult incontinence products.  The 
foundation of its business is a  network of world class wood fiber  converting 
assets that produce papergrade, fluff and specialty pulps. The majority of its
pulp production  is  consumed internally  to  manufacture paper  and  consumer 
products. Domtar  is the  largest integrated  marketer of  uncoated  freesheet 
paper in North America with recognized brands such as Cougar^®, Lynx^®  Opaque 
Ultra, Husky^® Opaque Offset, First Choice^® and Domtar EarthChoice^®.  Domtar 
is also a  leading marketer and  producer of a  complete line of  incontinence 
care products marketed primarily under  the Attends^® brand name. Domtar  owns 
and operates Ariva^®, a  network of strategically  located paper and  printing 
supplies distribution facilities. In 2012, Domtar had sales of US$5.5  billion 
from some 50  countries. The  Company employs approximately  9,300 people.  To 
learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this news release that are not based on historical fact  are 
"forward-looking statements." While management  has based any  forward-looking 
statements contained herein  on its current  expectations, the information  on 
which  such  expectations  were   based  may  change.  These   forward-looking 
statements rely on a  number of assumptions concerning  future events and  are 
subject to a number of risks, uncertainties, and other factors, many of  which 
are outside  of our  control that  could cause  actual results  to  materially 
differ from  such statements.  Such risks,  uncertainties, and  other  factors 
include, but  are  not necessarily  limited  to,  those set  forth  under  the 
captions "Forward-Looking Statements"  and "Risk Factors"  of the latest  Form 
10-K filed with  the SEC as  periodically updated by  subsequently filed  Form 
10-Q's. Unless specifically required by law, we assume no obligation to update
or  revise  these  forward-looking  statements   to  reflect  new  events   or 
circumstances.

_____________________
^1  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP
Financial Measures in the appendix.

 

Domtar Corporation
Highlights
(In millions of dollars, unless otherwise noted)
                                                                              
                                                   Three months  Three months
                                                    ended March   ended March
                                                        31            31
                                                       2013          2012
                                                           (Unaudited)
                                                               $             $
                                                                              
Selected Segment Information                                                  
                                                                  
Sales                                                                         
               Pulp and Paper                              1,123         1,191
               Distribution                                  162           189
               Personal Care                                 111            70
Total for reportable segments                              1,396         1,450
               Intersegment sales - Pulp and
               Paper                                        (51)          (52)
Consolidated sales                                         1,345         1,398
Depreciation and amortization and impairment and
write-down of property, plant and equipment                                   
               Pulp and Paper                                 88            93
               Distribution                                    1             1
               Personal Care                                   6             3
Total for reportable segments                                 95            97
               Impairment and write-down of
               property, plant and equipment -
               Pulp and Paper                                 10             2
Consolidated depreciation and amortization and
impairment and write-down of property, plant and
equipment                                                    105            99
                                                                              
Operating income (loss)                                                       
               Pulp and Paper                                 39           107
               Distribution                                  (1)           (1)
               Personal Care                                  13             8
               Corporate                                     (2)           (5)
Consolidated operating income                                 49           109
Interest expense, net                                         25            71
Earnings before income taxes and equity earnings              24            38
Income tax (benefit) expense                                (22)             8
Equity loss, net of taxes                                      1             2
Net earnings                                                  45            28
                                                                  
Per common share (in dollars)                                                 
        Net earnings                                                          
               Basic                                        1.29          0.76
               Diluted                                      1.29          0.76
Weighted average number of common and
exchangeable shares outstanding (millions)                                    
               Basic                                        34.8          36.7
               Diluted                                      34.9          37.0
                                                                  
Cash flows provided from operating activities                 63            30
Additions to property, plant and equipment                    56            29

Domtar Corporation
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)
                                                                  
                                                                 Three months
                                                   Three months   ended March
                                                  ended March 31      31
                                                       2013          2012
                                                          (Unaudited)
                                                               $             $
                                                                              
Sales                                                      1,345         1,398
Operating expenses                                                            
           Cost of sales, excluding
           depreciation and amortization                   1,082         1,088
           Depreciation and amortization                      95            97
           Selling, general and administrative                91            99
           Impairment and write-down of
           property, plant and equipment                      10             2
           Closure and restructuring costs                     -             1
           Other operating loss, net                          18             2
                                                           1,296         1,289
Operating income                                              49           109
Interest expense, net                                         25            71
Earnings before income taxes and equity
earnings                                                      24            38
Income tax (benefit) expense                                (22)             8
Equity loss, net of taxes                                      1             2
Net earnings                                                  45            28
                                                                              
Per common share (in dollars)                                                 
      Net earnings                                                            
           Basic                                            1.29          0.76
           Diluted                                          1.29          0.76
Weighted average number of common and
exchangeable shares outstanding (millions)                                    
           Basic                                            34.8          36.7
           Diluted                                          34.9          37.0

Domtar Corporation
Consolidated Balance Sheets at
(In millions of dollars)
                                                     March 31 December 31
                                                       2013      2012
                                                         (Unaudited)
                                                            $           $
Assets                                                                   
Current assets                                                           
    Cash and cash equivalents                             513         661
    Receivables, less allowances of $4 and $4             612         562
    Inventories                                           671         675
    Prepaid expenses                                       31          24
    Income and other taxes receivable                      61          48
    Deferred income taxes                                  45          45
      Total current assets                              1,933       2,015
                                                                         
  Property, plant and equipment, at cost                8,782       8,793
  Accumulated depreciation                            (5,454)     (5,392)
      Net property, plant and equipment                 3,328       3,401
Goodwill                                                  261         263
Intangible assets, net of amortization                    304         309
Other assets                                              134         135
        Total assets                                    5,960       6,123
                                                                         
Liabilities and shareholders' equity                                     
Current liabilities                                                      
    Bank indebtedness                                      13          18
    Trade and other payables                              645         646
    Income and other taxes payable                         15          15
    Long-term debt due within one year                      8          79
      Total current liabilities                           681         758
                                                                         
Long-term debt                                          1,104       1,128
Deferred income taxes and other                           900         903
Other liabilities and deferred credits                    433         457
                                                                         
Shareholders' equity                                                     
    Exchangeable shares                                    47          48
    Additional paid-in capital                          2,131       2,175
    Retained earnings                                     812         782
    Accumulated other comprehensive loss                (148)       (128)
      Total shareholders' equity                        2,842       2,877
        Total liabilities and shareholders' equity      5,960       6,123

Domtar Corporation
Consolidated Statements of Cash Flows
(In millions of dollars)
                                                                 
                                                  Three months   Three months
                                                 ended March 31 ended March 31
                                                      2013           2012
                                                          (Unaudited)
                                                              $              $
                                                                              
Operating activities                                                          
Net earnings                                                 45             28
Adjustments to reconcile net earnings to cash
flows from operating activities                                               
  Depreciation and amortization                              95             97
  Deferred income taxes and tax uncertainties                 1              3
  Impairment and write-down of property, plant
  and equipment                                              10              2
  Net gain on disposal of property, plant and
  equipment                                                (10)              -
  Stock-based compensation expense                            1              1
  Equity loss, net                                            1              2
  Other                                                     (1)            (3)
Changes in assets and liabilities, excluding
the effects of acquisition of business                                        
  Receivables                                              (53)           (36)
  Inventories                                               (1)              1
  Prepaid expenses                                          (2)              -
  Trade and other payables                                  (8)           (87)
  Income and other taxes                                   (18)              6
  Difference between employer pension and
  other post-retirement contributions and
  pension and other post-retirement expense                   5              4
  Other assets and other liabilities                        (2)             12
  Cash flows provided from operating
  activities                                                 63             30
                                                                 
Investing activities                                                          
Additions to property, plant and equipment                 (56)           (29)
Proceeds from disposal of property, plant and
equipment                                                     9              -
Acquisition of business, net of cash acquired                 -          (232)
Investment in joint venture                                 (1)            (2)
  Cash flows used for investing activities                 (48)          (263)
                                                                 
Financing activities                                                          
Dividend payments                                          (16)           (13)
Net change in bank indebtedness                             (5)              6
Issuance of long-term debt                                    -            299
Repayment of long-term debt                                (95)          (187)
Stock repurchase                                           (47)            (4)
Other                                                         1              3
  Cash flows (used for) provided from
  financing activities                                    (162)            104
                                                                 
Net decrease in cash and cash equivalents                 (147)          (129)
Impact of foreign exchange on cash                          (1)              -
Cash and cash equivalents at beginning of
period                                                      661            444
Cash and cash equivalents at end of period                  513            315
                                                                              
Supplemental cash flow information                                            
  Net cash payments for:                                                      
         Interest (including $2 million and
         $47 million of tender offer premiums
         in 2013 and 2012, respectively)                     12             65
         Income taxes paid                                    1              9

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted  accounting 
principles ("GAAP") financial metrics identified  in bold as "Earnings  before 
items", "Earnings before items per diluted share", "EBITDA", "EBITDA  margin", 
"EBITDA before items", "EBITDA  margin before items",  "Free cash flow",  "Net 
debt" and  "Net debt-to-total  capitalization." Management  believes that  the 
financial metrics presented are frequently used by investors and are useful to
evaluate  our  ability  to  service  debt  and  our  overall  credit  profile. 
Management believes these  metrics are  also useful to  measure the  operating 
performance and benchmark with  peers within the  industry. These metrics  are 
presented as a complement  to enhance the  understanding of operating  results 
but not in substitution for GAAP results.

The Company calculates "Earnings  before items" and  "EBITDA before items"  by 
excluding the after-tax (pre-tax) effect of items considered by management  as 
not reflecting our current operations. Management uses these measures, as well
as EBITDA and Free cash flow, to focus on ongoing operations and believes that
it is  useful to  investors  because it  enables  them to  perform  meaningful 
comparisons between periods. Domtar believes that using this information along
with Net earnings  provides for  a more complete  analysis of  the results  of 
operations. Net earnings and Cash flow provided from operating activities  are 
the most directly comparable GAAP measures.

                                                  
                                            2013             2012
                                            Q1    Q1    Q2    Q3    Q4    YTD
Reconciliation of "Earnings
before items" to Net earnings                                                 
      Net earnings              ($)           45    28    59    66    19   172
  (+) Impairment and write-down
      of property, plant and
      equipment and intangible
      assets                    ($)            7     1     -     -     8     9
  (+) Closure and restructuring
      costs                     ($)            -     1     -     1    18    20
  (-) Net (gains) losses on
      disposals of property,
      plant and equipment       ($)          (6)     -     -     -     1     1
  (+) Impact of purchase
      accounting                ($)            -     1     -     -     -     1
  (+) Reversal of alternative
      fuel tax credits          ($)           18     -     -     -     -     -
  (-) Cellulosic biofuel
      producer credits          ($)         (33)     -     -     -     -     -
  (+) Loss on repurchase of
      long-term debt            ($)            2    30     -     -     -    30
  (=) Earnings before items     ($)           33    61    59    67    46   233
  (/) Weighted avg. number of
      common and exchangeable
      shares outstanding
      (diluted)                 (millions)  34.9  37.0  36.6  35.8  35.2  36.1
  (=) Earnings before items per
      diluted share             ($)         0.95  1.65  1.61  1.87  1.31  6.45
                                                                              
Reconciliation of "EBITDA" and
"EBITDA before items" to Net
earnings                                                                      
      Net earnings              ($)           45    28    59    66    19   172
  (+) Equity loss, net of taxes ($)            1     2     2     1     1     6
  (+) Income tax (benefit)
      expense                   ($)         (22)     8    27    22     1    58
  (+) Interest expense, net     ($)           25    71    18    20    22   131
  (=) Operating income          ($)           49   109   106   109    43   367
  (+) Depreciation and
      amortization              ($)           95    97    96    96    96   385
  (+) Impairment and write-down
      of property, plant and
      equipment and intangible
      assets                    ($)           10     2     -     -    12    14
  (-) Net (gains) losses on
      disposals of property,
      plant and equipment       ($)         (10)     -     -     -     2     2
  (=) EBITDA                    ($)          144   208   202   205   153   768
  (/) Sales                     ($)        1,345 1,398 1,368 1,389 1,327 5,482
  (=) EBITDA margin             (%)          11%   15%   15%   15%   12%   14%
      EBITDA                    ($)          144   208   202   205   153   768
  (+) Reversal of alternative
      fuel tax credits          ($)           26     -     -     -     -     -
  (+) Closure and restructuring
      costs                     ($)            -     1     -     2    27    30
  (+) Impact of purchase
      accounting                ($)            -     1     -     -     -     1
  (=) EBITDA before items       ($)          170   210   202   207   180   799
  (/) Sales                     ($)        1,345 1,398 1,368 1,389 1,327 5,482
  (=) EBITDA margin before
      items                     (%)          13%   15%   15%   15%   14%   15%
                                                                              
Reconciliation of "Free cash
flow" to Cash flow provided
from operating activities                                                     
      Cash flow provided from
      operating activities      ($)           63    30   175   206   140   551
  (-) Additions to property,
      plant and equipment       ($)         (56)  (29)  (76)  (66)  (65) (236)
  (=) Free cash flow            ($)            7     1    99   140    75   315
                                                                              
"Net debt-to-total
capitalization" computation                                                   
      Bank indebtedness         ($)           13    13    22    15    18      
  (+) Long-term debt due within
      one year                  ($)            8     6     6     7    79      
  (+) Long-term debt            ($)        1,104   952   950 1,196 1,128      
  (=) Debt                      ($)        1,125   971   978 1,218 1,225      
  (-) Cash and cash equivalents ($)        (513) (315) (276) (593) (661)      
  (=) Net debt                  ($)          612   656   702   625   564      
  (+) Shareholders' equity      ($)        2,842 3,009 2,948 3,004 2,877      
  (=) Total capitalization      ($)        3,454 3,665 3,650 3,629 3,441      
      Net debt                  ($)          612   656   702   625   564      
  (/) Total capitalization      ($)        3,454 3,665 3,650 3,629 3,441      
  (=) Net debt-to-total
      capitalization            (%)          18%   18%   19%   17%   16%      
                                                                              

"Earnings before items", "Earnings before items per diluted share",  "EBITDA", 
"EBITDA margin", "EBITDA  before items", "EBITDA  margin before items",  "Free 
cash  flow",  "Net  debt"  and  "Net  debt-to-total  capitalization"  have  no 
standardized meaning prescribed by GAAP and are not necessarily comparable  to 
similar measures  presented by  other companies  and therefore  should not  be 
considered in isolation or as a substitute for Net earnings, Operating  income 
or any  other  earnings  statement,  cash  flow  statement  or  balance  sheet 
financial information prepared in  accordance with GAAP.  It is important  for 
readers to understand that certain items  may be presented in different  lines 
by different  companies  on  their financial  statements  thereby  leading  to 
different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2013
(In millions of dollars, unless otherwise noted)
 
The following table sets forth certain non-U.S. generally accepted  accounting 
principles ("GAAP"), financial metrics identified in bold as "Operating income
(loss) before items", "EBITDA before  items" and "EBITDA margin before  items" 
by  reportable  segment.  Management  believes  that  the  financial   metrics 
presented are  frequently used  by investors  and are  useful to  measure  the 
operating performance  and benchmark  with peers  within the  industry.  These 
metrics are  presented  as  a  complement  to  enhance  the  understanding  of 
operating results but not in substitution for GAAP results.

The Company calculates the segmented "Operating income (loss) before items" by
excluding the  pre-tax  effect  of  items  considered  by  management  as  not 
reflecting our ongoing operations. Management uses these measures to focus  on 
ongoing operations and  believes that  it is  useful to  investors because  it 
enables  them  to  perform  meaningful  comparisons  between  periods.  Domtar 
believes that  using  this  information along  with  Operating  income  (loss) 
provides for a more complete analysis of the results of operations.  Operating 
income (loss) by segment is the most directly comparable GAAP measure.

                                                                                                                                                                      
                              Pulp and Paper                Distribution                Personal Care                 Corporate                      Total
                       Q1'13 Q2'13 Q3'13 Q4'13   YTD Q1'13 Q2'13 Q3'13 Q4'13 YTD Q1'13 Q2'13 Q3'13 Q4'13 YTD Q1'13 Q2'13 Q3'13 Q4'13 YTD Q1'13 Q2'13 Q3'13 Q4'13  YTD
Reconciliation of   
Operating income
(loss) to
"Operating income
(loss) before
items"                                                                                                                                                                
      Operating
      income
      (loss)       ($)    39     -     -     -    39   (1)     -     -     - (1)    13     -     -     -  13   (2)     -     -     - (2)    49     -     -     -    49
  (+) Impairment
      and
      write-down
      of property,
      plant and
      equipment    ($)    10     -     -     -    10     -     -     -     -   -     -     -     -     -   -     -     -     -     -   -    10     -     -     -    10
  (-) Net gain on
      disposal of
      property,
      plant and
      equipment    ($)  (10)     -     -     -  (10)     -     -     -     -   -     -     -     -     -   -     -     -     -     -   -  (10)     -     -     -  (10)
  (+) Reversal of
      alternative
      fuel tax
      credits      ($)    26     -     -     -    26     -     -     -     -   -     -     -     -     -   -     -     -     -     -   -    26     -     -     -    26
                                                                                                                                                                      
  (=) Operating
      income
      (loss)
      before items ($)    65     -     -     -    65   (1)     -     -     - (1)    13     -     -     -  13   (2)     -     -     - (2)    75     -     -     -    75
                                                                                                                                                                      
Reconciliation of   
"Operating income
(loss) before
items" to "EBITDA
before items"                                                                                                                                                         
      Operating
      income
      (loss)
      before items ($)    65     -     -     -    65   (1)     -     -     - (1)    13     -     -     -  13   (2)     -     -     - (2)    75     -     -     -    75
  (+) Depreciation
      and
      amortization ($)    88     -     -     -    88     1     -     -     -   1     6     -     -     -   6     -     -     -     -   -    95     -     -     -    95
                                                                                                                                                                      
  (=) EBITDA
      before items ($)   153    -      -     -   153     -     -     -     -   -    19     -     -     -  19   (2)     -     -     - (2)   170     -     -     -   170
  (/) Sales        ($) 1,123     -     -     - 1,123   162     -     -     - 162   111     -     -     - 111     -     -     -     -   - 1,396     -     -     - 1,396
  (=) EBITDA
      margin
      before items (%)   14%     -     -     -   14%     -     -     -     -   -   17%     -     -     - 17%     -     -     -     -   -   12%     -     -     -   12%
                                                                                                                                                                      

"Operating income  (loss) before  items", "EBITDA  before items"  and  "EBITDA 
margin before items" have no standardized  meaning prescribed by GAAP and  are 
not necessarily comparable  to similar measures  presented by other  companies 
and therefore should  not be considered  in isolation or  as a substitute  for 
Operating income (loss) or any  other earnings statement, cash flow  statement 
or balance sheet financial information prepared in accordance with GAAP. It is
important for readers  to understand that  certain items may  be presented  in 
different lines by different companies  on their financial statements  thereby 
leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2012
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted  accounting 
principles ("GAAP"), financial metrics identified in bold as "Operating income
(loss) before items", "EBITDA before  items" and "EBITDA margin before  items" 
by  reportable  segment.  Management  believes  that  the  financial   metrics 
presented are  frequently used  by investors  and are  useful to  measure  the 
operating performance  and benchmark  with peers  within the  industry.  These 
metrics are  presented  as  a  complement  to  enhance  the  understanding  of 
operating results but not in substitution for GAAP results.

The Company calculates the segmented "Operating income (loss) before items" by
excluding the  pre-tax  effect  of  items  considered  by  management  as  not 
reflecting our ongoing operations. Management uses these measures to focus  on 
ongoing operations and  believes that  it is  useful to  investors because  it 
enables  them  to  perform  meaningful  comparisons  between  periods.  Domtar 
believes that  using  this  information along  with  Operating  income  (loss) 
provides for a more complete analysis of the results of operations.  Operating 
income (loss) by segment is the most directly comparable GAAP measure.

                                                                                                                                            
                               Pulp and Paper                 Distribution             Personal Care ^(1)               Corporate                      Total
                        Q1'12 Q2'12 Q3'12 Q4'12   YTD Q1'12 Q2'12 Q3'12 Q4'12  YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12 YTD Q1'12 Q2'12 Q3'12 Q4'12  YTD
Reconciliation of    
Operating income
(loss) to
"Operating income
(loss) before
items"                                                                                                                                                                  
      Operating
      income (loss) ($)   107    96   103    40   346   (1)   (2)   (5)   (8) (16)     8    12    12    13  45   (5)     -   (1)   (2) (8)   109   106   109    43   367
  (+) Impairment
      and
      write-down of
      property,
      plant and
      equipment and
      intangible
      assets        ($)     2     -     -     7     9     -     -     -     5    5     -     -     -     -   -     -     -     -     -   -     2     -     -    12    14
  (+) Closure and
      restructuring
      costs         ($)     1     -     -    26    27     -     -     1     1    2     -     -     1     -   1     -     -     -     -   -     1     -     2    27    30
  (-) Net losses on
      disposals of
      property,
      plant and
      equipment     ($)     -     -     -     2     2     -     -     -     -    -     -     -     -     -   -     -     -     -     -   -     -     -     -     2     2
  (+) Impact of
      purchase
      accounting    ($)     -     -     -     -     -     -     -     -     -    -     1     -     -     -   1     -     -     -     -   -     1     -     -     -     1
                                                                                                                                                                        
  (=) Operating
      income (loss)
      before items  ($)   110    96   103    75   384   (1)   (2)   (4)   (2)  (9)     9    12    13    13  47   (5)     -   (1)   (2) (8)   113   106   111    84   414
                                                                                                                                                                        
Reconciliation of    
"Operating income
(loss) before
items" to "EBITDA
before items"                                                                                                                                                           
      Operating
      income (loss)
      before items  ($)   110    96   103    75   384   (1)   (2)   (4)   (2)  (9)     9    12    13    13  47   (5)     -   (1)   (2) (8)   113   106   111    84   414
  (+) Depreciation
      and
      amortization  ($)    93    88    90    90   361     1     2     -     1    4     3     6     6     5  20     -     -     -     -   -    97    96    96    96   385
                                                                                                                                                                        
  (=) EBITDA before
      items         ($)   203   184   193   165   745     -     -   (4)   (1)  (5)    12    18    19    18  67   (5)     -   (1)   (2) (8)   210   202   207   180   799
  (/) Sales         ($) 1,191 1,132 1,153 1,099 4,575   189   172   167   157  685    70   107   111   111 399     -     -     -     -   - 1,450 1,411 1,431 1,367 5,659
  (=) EBITDA margin
      before items  (%)   17%   16%   17%   15%   16%     -     -     -     -    -   17%   17%   17%   16% 17%     -     -     -     -   -   14%   14%   14%   13%   14%
                                                                                                                                                                        

"Operating income  (loss) before  items", "EBITDA  before items"  and  "EBITDA 
margin before items" have no standardized  meaning prescribed by GAAP and  are 
not necessarily comparable  to similar measures  presented by other  companies 
and therefore should  not be considered  in isolation or  as a substitute  for 
Operating income (loss) or any  other earnings statement, cash flow  statement 
or balance sheet financial information prepared in accordance with GAAP. It is
important for readers  to understand that  certain items may  be presented  in 
different lines by different companies  on their financial statements  thereby 
leading to different measures for different companies.

^(1) On March 1, 2012, the Company acquired 100% of the shares of Attends
     Healthcare Limited.
     On May 1, 2012, the Company acquired 100% of the shares of EAM
     Corporation.

Domtar Corporation
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)
                                                                              
                                            2013             2012
                                            Q1    Q1    Q2    Q3    Q4    YTD
Pulp and Paper Segment                                                        
  Sales                           ($)      1,123 1,191 1,132 1,153 1,099 4,575
      Intersegment sales - Pulp
      and Paper                   ($)       (51)  (52)  (43)  (42)  (40) (177)
  Operating income                ($)         39   107    96   103    40   346
  Depreciation and amortization   ($)         88    93    88    90    90   361
  Impairment and write-down of
  property, plant and equipment   ($)         10     2     -     -     7     9
                                                                              
  Papers                                                                      
                                  ('000
  Papers Production               ST)        795   870   832   788   831 3,321
                                  ('000
  Papers Shipments                ST)        828   870   819   826   805 3,320
                                  ('000
      Communication Papers        ST)        706   756   705   709   684 2,854
                                  ('000
      Specialty and Packaging     ST)        122   114   114   117   121   466
                                                                              
  Pulp                                                                        
                                  ('000
  Pulp Shipments^(a)              ADMT)      372   389   368   415   385 1,557
      Hardwood Kraft Pulp         (%)        17%   15%   16%   20%   19%   18%
      Softwood Kraft Pulp         (%)        56%   61%   57%   55%   56%   57%
      Fluff Pulp                  (%)        27%   24%   27%   25%   25%   25%
                                                                              
Distribution Segment                                                          
  Sales                           ($)        162   189   172   167   157   685
  Operating loss                  ($)        (1)   (1)   (2)   (5)   (8)  (16)
  Depreciation and amortization   ($)          1     1     2     -     1     4
  Impairment and write-down of
  intangible assets               ($)          -     -     -     -     5     5
                                                                              
Personal Care Segment                                                         
  Sales                           ($)        111    70   107   111   111   399
  Operating income                ($)         13     8    12    12    13    45
  Depreciation and amortization   ($)          6     3     6     6     5    20
                                                                              
                                                                              
                                  $US /
Average Exchange Rates            $CAN     1.009 1.001 1.010 0.995 0.991 0.999
                                  $CAN /
                                  $US      0.991 0.999 0.990 1.006 1.009 1.001
                                  €EUR /
                                  $US      1.320 1.312 1.283 1.252 1.298 1.286
                                                                              

  (a) Figures are gross of market pulp purchased from other producers on the
      open market for some of our paper making operations. Pulp Shipments
      represent the amount of pulp produced in excess of our internal
      requirement.
       
      Note: the term "ST" refers to a short ton and the term "ADMT" refers to
      an air dry metric ton.

 

 

 

 

 

 

SOURCE DOMTAR CORPORATION

Contact:

MEDIA AND INVESTOR RELATIONS
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement