Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Repap (RPAPF) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Latchum who wrote (225)	8/11/1998 7:58:00 AM
From: The Osprey	Respond to of 485

Dennis, My assumption is that debt is based in "Looney Tunes" as the financials state in Canadian Dollars-Unaudited. REPAP NEW BRUNSWICK INC. CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited - Thousands of Canadian Dollars) QUARTER ENDED ------------------------------- ------------------- Jun. 30, Mar. 31, Jun. 30, Yr Over Qtr Over 1997 1998 1998 Yr % Qtr % Change Change --------- --------- ---------- ---------- ------- REVENUES $149,252 $163,307 $168,841 13% 3% Hedge foreign exchange adjustment (1) (1,720) (1,159) (1,728) --------- --------- ---------- NET REVENUES $147,532 $162,148 $167,113 13% 3% --------- --------- ---------- Net sales 129,514 144,248 149,338 Cost of sales excluding depreciation & amortization 102,732 95,022 99,411 -3% 5% Selling, administrative & research expenses 4,916 4,969 6,474 Depreciation & amortization 13,428 15,995 14,849 --------- --------- ---------- Operating profit 8,438 28,262 28,604 239% 1% Interest expense 26,004 26,318 26,522 Miscellaneous expense 722 1,176 1,375 Unusual items 0 0 46,272 --------- --------- ---------- Income (loss) before the undernoted (18,288) 768 (45,565) Provision for income taxes 508 578 555 --------- --------- ---------- NET INCOME (LOSS) ($18,796) $190 ($46,120) --------- --------- ---------- --------- --------- ---------- EBITDA (2) $23,586 $45,416 $45,181 92% -1% --------- --------- ---------- --------- --------- ---------- REVENUES BY SEGMENT Coated Paper $121,032 $148,253 $147,976 Pulp 19,797 9,899 14,731 Lumber 8,423 5,155 6,134 Hedged foreign exchange adjustment (1) (1,720) (1,159) (1,728) --------- --------- ---------- Total Revenue $147,532 $162,148 $167,113 --------- --------- ---------- --------- --------- ---------- MARKET SHIPMENTS (IN THOUSANDS) Coated Paper (tons) 110 112 114 Kraft Pulp (tonnes) 32 13 20 Lumber (Mfbm) 18 12 16 YEAR-TO-DATE ------------------------- Jun. 30, Jun. 30, % CHANGE 1997 1998 ----------- ----------- ----------- REVENUES $290,177 $332,148 14% Hedge foreign exchange adjustment (1) (2,878) (2,887) --------- --------- NET REVENUES $287,299 $329,261 15% --------- --------- Net sales 251,150 293,586 Cost of sales excluding depreciation & amortization 211,535 194,433 -8% Selling, administrative & research expenses 10,316 11,443 Depreciation & amortization 24,357 30,845 --------- --------- Operating profit 4,942 56,865 1051% Interest expense 51,275 52,839 Miscellaneous expense 410 2,551 Unusual items 22,999 46,272 --------- --------- Income (loss) before the undernoted (69,742) (44,797) Provision for income taxes 1,017 1,133 --------- --------- NET INCOME (LOSS) ($70,759) (45,930) --------- --------- --------- --------- EBITDA (2) $32,177 $90,597 182% --------- --------- --------- --------- REVENUES BY SEGMENT Coated Paper $233,566 $296,229 Pulp 41,876 24,630 Lumber 14,736 11,289 Hedged foreign exchange adjustment (1) (2,879) (2,887) --------- --------- Total Revenue $287,299 $329,261 --------- --------- --------- --------- MARKET SHIPMENTS (IN THOUSANDS) Coated Paper (tons) 220 226 Kraft Pulp (tonnes) 58 33 Lumber (Mfbm) 31 28 (1) Represents non-cash impact of hedged currency exchange losses (2) EBITDA = operating profit plus depreciation and amortization plus non-cash hedged foreign exchange loss REPAP NEW BRUNSWICK INC. CONSOLIDATED BALANCE SHEET (Unaudited - Thousands of Canadian Dollars) December 31 June 30 1997 1998 ----------- ---------- ASSETS Current assets $150,672 $144,274 Other assets 169,629 141,483 Net fixed assets 1,007,153 990,791 ----------- ---------- $1,327,454 $1,276,548 ----------- ---------- ----------- ---------- LIABILITIES Current liabilities $176,929 $136,457 Revolving Credit Facility 97,459 - ----------- ---------- 274,388 136,457 Revolving Credit Facility - 88,284 Long-term debt 901,342 987,293 Repayable grants and other long-term liabilities 25,550 22,254 ----------- ---------- 926,892 1,097,831 Investment tax credits 147,944 110,481 Grants - non-repayable 23,817 23,296 SHAREHOLDER'S EQUITY (DEFICIENCY) Preferred shares 154,173 154,173 Common shares 159,075 159,075 Deficit (372,123) (418,053) Contributed surplus 13,288 13,288 ----------- ---------- ----------- ---------- Total shareholder's equity (deficiency) (45,587) (91,517) ----------- ---------- ----------- ---------- $1,327,454 $1,276,548 ----------- ---------- ----------- ---------- REPAP NEW BRUNSWICK INC. CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (Unaudited - Thousands of Canadian Dollars) QUARTER ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 -------------------- --------------------- 1997 1998 1997 1998 --------- --------- --------- --------- OPERATING ACTIVITIES: Loss ($18,796) ($46,120) ($70,759) ($45,930) Add items not affecting cash - Depreciation and amortization 13,428 14,849 24,356 30,845 Unusual item and other 1,862 48,353 26,164 49,870 --------- --------- --------- --------- CASH FLOW BEFORE NET CHANGES IN NON-CASH WORKING CAPITAL (3,506) 17,082 (20,239) 34,785 Non-cash working capital changes 18,356 (9,386) 39,067 (5,991) --------- --------- --------- --------- CASH PROVIDED BY OPERATIONS 14,850 7,696 18,828 28,794 INVESTING ACTIVITIES: Additions to fixed assets (2,107) (5,508) (2,667) (8,208) Deferred charges and other assets (400) (17,088) (366) (17,088) --------- --------- --------- --------- CASH USED IN INVESTING ACTIVITIES (2,507) (22,596) (3,033) (25,296) FINANCING ACTIVITIES: Additions to debt 217 466,106 217 466,496 Repayment of debt (475) (438,112) (1,060) (441,438) Revolving credit facility, net change (12,200) 4,533 (17,487) (11,431) Other 295 (17,571) 397 (17,166) --------- --------- --------- --------- CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (12,163) 14,956 (17,933) (3,539) --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH 180 56 (2,138) (41) CASH POSITION AT BEGINNING OF PERIOD 1,125 296 3,443 393 --------- --------- --------- --------- CASH POSITION AT END OF PERIOD $1,305 $352 $1,305 $352 --------- --------- --------- --------- --------- --------- --------- --------- REPRESENTED BY: Cash and short-term deposits $1,305 $352 $1,305 $352 --------- --------- --------- --------- --------- --------- --------- --------- >> %SEDAR: 00003098E -30- For further information: Stephen C. Larson, President & CEO, (203) 964-6163 or Michelle A. Cormier, Vice-President, Finance, (203) 964-6168

To: Dennis Latchum who wrote (225)	8/11/1998 10:52:00 AM
From: scott	Read Replies (1) \| Respond to of 485

the info i gave u is accurate-the debt is denominated in US dollars - the company is a reporting canadian company so it must present its financials in canadian dollars translated using an fx rate governed by a reasonably complex series of accounting rules. but keep in mind that given repap is in a commodity business which is denominated in us dollars, the value of the asset is also determined using us dollars. therefore they have an embedded currency hedge as both their assets and liabs are in us dollars, leaving he equity value of the firm the only exposure to fx flucuations. they do some short term hedging of their revenue ie they sell some of their us dollar revenue for canadian dollar revenue.