Cascades Reports Results for the First Quarter of 2025
PR Newswire
KINGSEY FALLS, QC, May 8, 2025
KINGSEY FALLS, QC, May 8, 2025 /PRNewswire/ - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period ended March 31, 2025.
Q1 2025 Highlights
-- Sales of $1,154 million (compared with $1,211 million in Q4 2024 and
$1,109 million in Q1 2024);
-- Operating income of $50 million (compared with $16 million in Q4 2024 and
$9 million in Q1 2024);
-- Net earnings per common share of $0.07 (compared with a net loss per
common share of ($0.13) in Q4 2024 and a net loss per common share of
($0.20) in Q1 2024);
-- Adjusted earnings before interest, taxes, depreciation and amortization
(EBITDA $(A)$1) of $125 million (compared with $146 million in Q4 2024 and
$103 million in Q1 2024);
-- Adjusted net earnings per common share1 of $0.13 (compared with adjusted
net earnings per common share1 of $0.25 in Q4 2024 and adjusted net loss
per common share1 $0.00 in Q1 2024);
-- Net debt1 of $2,216 million as of March 31, 2025 (compared with $2,096
million as of December 31, 2024). Net debt to EBITDA (A) ratio1 of 4.2x,
unchanged from December 31, 2024;
-- Total capital expenditures, net of disposals, totaled $36 million in Q1
2025, compared to $29 million in Q4 2024 and $41 million in Q1 2024. The
Corporation's 2025 forecasted capital expenditures before disposals will
be approximately $175 million.
Hugues Simon, President and CEO, commented: "Our first quarter performance was driven by lower volumes across our businesses as uncertainty regarding tariffs led to a deterioration in consumer and business sentiment beginning in mid-February, resulting in lower sales and profitability levels sequentially. Results were similarly impacted by usual higher seasonal energy costs, increased operational costs due to lower production, and higher transportation costs. Offsetting these factors were favourable average selling prices and raw material costs across our businesses. Broadly, the depreciation of the Canadian dollar benefited quarterly results."
Discussing near-term outlook, Mr. Simon commented, "We are expecting stronger second quarter results. The sequential improvement in packaging will reflect benefits from the implementation of previously announced price increases. We expect improved tissue performance to be driven by volume growth, with positive retail tissue trends and a pick up in Away-from-Home, along with pricing initiatives, the benefits of which are expected to mitigate higher raw material costs. Broadly, continued uncertainty in the macro-economic environment may impact future demand levels across North America and our outlook."
1 Some information represents non-IFRS Accounting Standards Financial measures, other financial measures or non-IFRS Accounting Standards ratios which are not standardized under IFRS Accounting Standards and therefore might not be comparable to similar financial measures disclosed by other corporations. Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation.
Financial Summary
Selected consolidated information
(in millions of Canadian dollars, except amounts per common share) (unaudited) Q1 2025 Q4 2024 Q1 2024 ------------------------ ---------------- ---------------- ---------------- Sales 1,154 1,211 1,109 As Reported Operating income 50 16 9 Net earnings (loss) 7 (13) (20) per common share (basic) $0.07 ($0.13) ($0.20) Adjusted(1) Earnings before interest, taxes, depreciation and amortization (EBITDA (A)) 125 146 103 Net earnings (loss) 13 25 -- per common share (basic) $0.13 $0.25 $-- Margin (EBITDA (A) / Sales) 10.8 % 12.1 % 9.3 % Net debt(1) 2,216 2,096 2,020 Net debt / EBITDA (A) 4.2x 4.2x 3.8x ratio(1) ------------------------ ---------------- ---------------- ----------------
Segmented sales
(in millions of Canadian dollars) (unaudited) Q1 2025 Q4 2024 Q1 2024 --------------------------------------------------- ------- ------- ------- Packaging Products 762 782 709 Tissue Papers 364 394 367 Inter-segment sales, Corporate, Recovery and Recycling activities 28 35 33 --------------------------------------------------- ------- ------- ------- Sales 1,154 1,211 1,109 --------------------------------------------------- ------- ------- -------
Segmented operating income (loss)
(in millions of Canadian dollars) (unaudited) Q1 2025 Q4 2024 Q1 2024 ---------------------------------------------- ------- ------- ------- Packaging Products 60 58 12 Tissue Papers 24 4 31 Corporate, Recovery and Recycling activities (34) (46) (34) ---------------------------------------------- ------- ------- ------- Operating income 50 16 9 ---------------------------------------------- ------- ------- -------
Segmented EBITDA (A)(1)
(in millions of Canadian dollars) (unaudited) Q1 2025 Q4 2024 Q1 2024 ---------------------------------------------- ------- ------- ------- Packaging Products 109 132 75 Tissue Papers 37 45 50 Corporate, Recovery and Recycling activities (21) (31) (22) ---------------------------------------------- ------- ------- ------- EBITDA (A)(1) 125 146 103 ---------------------------------------------- ------- ------- ------- 1 Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation.
Analysis of results for the three-month period ended March 31, 2025 (compared to the same period last year)
The Corporation's first quarter sales of $1,154 million increased by $45 million compared with the same period last year. This increase was driven by consolidated net benefits of $47 million from higher selling prices and $45 million from a more favourable foreign exchange. These were partially offset by $48 million from lower volumes.
The first quarter EBITDA (A)(1) totaled $125 million, an increase of $22 million, or 21%, from the $103 million generated in the same period last year. This increase was driven by net benefits of $47 million from higher selling prices, mainly in the packaging products segment and a more favourable exchange rate. These were partially offset by net impacts of $10 million from higher production and energy costs and $15 million from lower volumes.
The main specific items, before income taxes, that impacted our first quarter of 2025 operating income and/or net earnings were:
-- $1 million of impairment charge on some equipment related to a closed
facility in Canada (operating income and net earnings);
-- $4 million of costs related to a legal settlement with a supplier
involved in the construction of Bear Island (operating income and net
earnings);
-- $5 million of restructuring costs related to a plant closure in the
United States and corporate organizational changes (operating income and
net earnings);
-- $4 million unrealized gain on financial instruments (operating income and
net earnings);
For the three-month period ended March 31, 2025, the Corporation posted net earnings of $7 million, or $0.07 per common share, compared to a net loss of $(20) million, or ($0.20) per common share, in the same period of 2024. On an adjusted basis(1) , the Corporation posted net earnings of $13 million in the first quarter of 2025, or $0.13 per common share, compared to a net loss of less than a million dollars, or $0.00 per common share, in the same period of 2024.
1 Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation.
Dividend on common shares and normal course issuer bid
The Board of Directors of Cascades declared a quarterly dividend of $0.12 per common share to be paid on June 5, 2025 to shareholders of record at the close of business on May 22, 2025. This dividend is an "eligible dividend" as per the Income Tax Act (R.C.S. (1985), Canada). During the first quarter of 2025, Cascades purchased no common shares for cancellation.
2025 First Quarter Results Conference Call Details
Management will discuss the 2025 first quarter financial results during a conference call today at 9:00 a.m. ET. The call can be accessed by dialing 1-800-990-4777 (international 1-289-819-1299). The conference call, including the investor presentation, will be broadcast live on the Cascades website (www.cascades.com) under the "Investors" section. A replay of the call will be available on the Cascades website and may also be accessed by phone until June 8, 2025 by dialing 1-888-660-6345 (international 1-289-819-1450), access code 38876 #.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,600 women and men across a network of 68 operating facilities, including 18 Recovery and Recycling facilities which are part of Corporate Activities and joint ventures managed by the Corporation, in North America. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Corporation's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(in millions of Canadian dollars) (unaudited) 2025 2024
Assets
Current assets
Cash and cash equivalents 29 27
Accounts receivable 484 469
Current income tax assets 5 4
Inventories 734 685
Current portion of financial assets 2 1
1,254 1,186
Long-term assets
Investments in associates and joint ventures 99 97
Property, plant and equipment 2,826 2,847
Intangible assets with finite useful life 39 41
Other assets 107 105
Deferred income tax assets 219 220
Goodwill and other intangible assets with indefinite
useful life 504 504
----------------------------------------------------- --------- ------------
5,051 5,000
----------------------------------------------------- --------- ------------
Liabilities and Equity
Current liabilities
Bank loans and advances 4 10
Trade and other payables 689 748
Current income tax liabilities 4 2
Current portion of unsecured senior notes of $296
million to be refinanced ($175 million in 2024) 296 175
Current portion of long-term debt 72 67
Current portion of provisions for charges 47 42
Current portion of financial liabilities and other
liabilities 34 43
1,146 1,087
Long-term liabilities
Long-term debt 1,873 1,871
Provisions for charges 54 58
Other liabilities 78 80
Deferred income tax liabilities 133 133
----------------------------------------------------- --------- ------------
3,284 3,229
----------------------------------------------------- --------- ------------
Equity
Capital stock 617 616
Contributed surplus 16 16
Retained earnings 1,013 1,019
Accumulated other comprehensive income 72 73
----------------------------------------------------- --------- ------------
Equity attributable to Shareholders 1,718 1,724
Non-controlling interests 49 47
----------------------------------------------------- --------- ------------
Total equity 1,767 1,771
----------------------------------------------------- --------- ------------
5,051 5,000
----------------------------------------------------- --------- ------------
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the 3-month periods
ended March 31,
-------------------------------
(in millions of Canadian dollars, except per
common share amounts and number of common
shares) (unaudited) 2025 2024
Sales 1,154 1,109
--------------------------------------------- --------------- --------------
Supply chain and logistic 679 668
Wages and employee benefits expenses 280 267
Depreciation and amortization 69 67
Maintenance and repair 64 62
Other operational costs 6 9
Impairment charges 1 2
Other loss 4 3
Restructuring costs 5 23
Unrealized gain on derivative financial
instruments (4) (1)
Operating income 50 9
Financing expense 36 35
Share of results of associates and joint
ventures (3) (3)
--------------------------------------------- --------------- --------------
Earnings (loss) before income taxes 17 (23)
Provision for (recovery of) income taxes 5 (6)
Net earnings (loss) including non-controlling
interests for the period 12 (17)
Net earnings attributable to non-controlling
interests 5 3
--------------------------------------------- --------------- --------------
Net earnings (loss) attributable to
Shareholders for the period 7 (20)
Net earnings (loss) per common share
Basic $0.07 ($0.20)
Diluted $0.07 ($0.20)
--------------------------------------------- --------------- --------------
Weighted average basic number of common
shares outstanding 100,993,811 100,703,177
--------------------------------------------- --------------- --------------
Weighted average number of diluted common
shares 101,421,656 101,216,020
--------------------------------------------- --------------- --------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the 3-month periods
ended March 31,
-------------------------------
(in millions of Canadian dollars) (unaudited) 2025 2024
Net earnings (loss) including non-controlling
interests for the period 12 (17)
--------------------------------------------- --------------- --------------
Other comprehensive income (loss)
Items that may be reclassified subsequently
to earnings
Translation adjustments
Change in foreign currency translation of
foreign subsidiaries (41) 26
Change in foreign currency translation
related to net investment hedging
activities 40 (10)
Recovery of income taxes -- 1
(1) 17
Items that are not released to earnings
Actuarial gain (loss) on employee future
benefits (1) 7
Provision for income taxes -- (2)
(1) 5
Other comprehensive income (loss) (2) 22
--------------------------------------------- --------------- --------------
Comprehensive income including
non-controlling interests for the period 10 5
Comprehensive income attributable to
non-controlling interests for the period 5 4
--------------------------------------------- --------------- --------------
Comprehensive income attributable to
Shareholders for the period 5 1
--------------------------------------------- --------------- --------------
CONSOLIDATED STATEMENTS OF EQUITY
For the 3-month period ended March 31, 2025
---------------------------------------------------------------------------------
(in millions of ACCUMULATED TOTAL EQUITY
Canadian OTHER ATTRIBUTABLE NON-
dollars) CAPITAL CONTRIBUTED RETAINED COMPREHENSIVE TO CONTROLLING TOTAL
(unaudited) STOCK SURPLUS EARNINGS INCOME SHAREHOLDERS INTERESTS EQUITY
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
Balance -
Beginning of
period 616 16 1,019 73 1,724 47 1,771
Comprehensive
income (loss)
Net earnings -- -- 7 -- 7 5 12
Other
comprehensive
income (loss) -- -- (1) (1) (2) -- (2)
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
-- -- 6 (1) 5 5 10
Dividends -- -- (12) -- (12) (3) (15)
Issuance of
common shares
upon exercise
of stock
options 1 -- -- -- 1 -- 1
Balance - End of
period 617 16 1,013 72 1,718 49 1,767
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
For the 3-month period ended March 31, 2024
---------------------------------------------------------------------------------
(in millions of ACCUMULATED TOTAL EQUITY
Canadian OTHER ATTRIBUTABLE NON-
dollars) CAPITAL CONTRIBUTED RETAINED COMPREHENSIVE TO CONTROLLING TOTAL
(unaudited) STOCK SURPLUS EARNINGS INCOME SHAREHOLDERS INTERESTS EQUITY
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
Balance -
Beginning of
period 613 15 1,096 15 1,739 42 1,781
Comprehensive
income (loss)
Net earnings
(loss) -- -- (20) -- (20) 3 (17)
Other
comprehensive
income -- -- 5 16 21 1 22
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
-- -- (15) 16 1 4 5
Dividends -- -- (12) -- (12) (3) (15)
Stock options
expense -- 1 -- -- 1 -- 1
Acquisition of
non-controlling
interests -- -- (2) -- (2) (1) (3)
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
Balance - End of
period 613 16 1,067 31 1,727 42 1,769
---------------- ------- ----------- -------- ------------- ------------ ----------- -------
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 3-month periods
ended March 31,
------------------------------
(in millions of Canadian dollars) (unaudited) 2025 2024
Operating activities
Net earnings (loss) attributable to
Shareholders for the period 7 (20)
Adjustments for:
Financing expense 36 35
Depreciation and amortization 69 67
Impairment charges 1 2
Other loss 4 3
Restructuring costs 5 23
Unrealized gain on derivative financial
instruments (4) (1)
Provision for (recovery of) income taxes 5 (6)
Share of results of associates and joint
ventures (3) (3)
Net earnings attributable to non-controlling
interests 5 3
Net financing expense paid (49) (47)
Net income taxes paid (2) (5)
Dividends received -- 1
Provisions for charges and other liabilities (29) (20)
---------------------------------------------- ---------------- ------------
45 32
Changes in non-cash working capital components (97) (70)
---------------------------------------------- ---------------- ------------
(52) (38)
---------------------------------------------- ---------------- ------------
Investing activities
Payments for property, plant and equipment (36) (41)
Change in intangible and other assets 1 --
(35) (41)
---------------------------------------------- ---------------- ------------
Financing activities
Bank loans and advances (6) 2
Change in credit facilities 267 77
Change in credit facilities without recourse
to the Corporation 1 15
Repurchase of unsecured senior notes (175) --
Increase in delayed draw unsecured term loan
credit facility 36 --
Payments of other long-term debt, including
lease obligations (2025 - $18 million for the
3-month period; 2024 - $20 million for the
3-month period) (19) (21)
Issuance of common shares upon exercise of
stock options 1 --
Dividends paid to non-controlling interests (3) (3)
Acquisition of non-controlling interests -- (3)
Dividends paid to the Corporation's
Shareholders (12) (12)
---------------------------------------------- ---------------- ------------
90 55
Net change in cash and cash equivalents during
the period 3 (24)
Currency translation on cash and cash
equivalents (1) 1
Cash and cash equivalents - Beginning of the
period 27 54
---------------------------------------------- ---------------- ------------
Cash and cash equivalents - End of the period 29 31
---------------------------------------------- ---------------- ------------
SEGMENTED INFORMATION
In the fourth quarter of 2024, the Corporation announced organizational changes designed to support its strategic growth. These changes involve the combination of the Containerboard and Specialty Products activities into a single operational unit. Since January 2025, the Corporation's operations are managed in two segments: Packaging Products and Tissue Papers. The comparative figures have been restated to conform with the current year's presentation. The accounting policies of the reportable segments are the same as the Corporation's accounting policies described in the most recent Audited Consolidated Financial Statements for the year ended December 31, 2024.
The Corporation's operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The Chief Executive Officer has authority for resource allocation and management of the Corporation's performance and is therefore the CODM. The CODM assesses the performance of each reportable segment based on sales and earnings before interest, taxes, depreciation and amortization, adjusted to exclude specific items (EBITDA (A)). The CODM considers EBITDA (A) to be the best performance measure of the Corporation's activities.
Sales for each segment are prepared on the same basis as those of the Corporation. Inter-segment operations are recorded on the same basis as sales to third parties, which are at fair market value.
EBITDA (A) does not have a standardized meaning under IFRS Accounting Standards; accordingly, it may not be comparable to similarly named measures used by other companies. Investors should not view EBITDA (A) as an alternative measure to, for example, net earnings, or as a measure of operating results, which are IFRS Accounting Standards measures.
Sales by business segment are shown in the following table:
SALES
--------------------------------------------------------------
2025 2024
For the 3-month
periods ended
March 31 (in
millions of
Canadian
dollars)
(unaudited) Total Inter-segment External Total Inter-segment External
Packaging
Products 762 (13) 749 709 (12) 697
Tissue Papers 364 -- 364 367 (1) 366
Corporate,
Recovery and
Recycling
activities 73 (32) 41 82 (36) 46
---------------- ----- ------------- -------- ----- ------------- --------
1,199 (45) 1,154 1,158 (49) 1,109
---------------- ----- ------------- -------- ----- ------------- --------
EBITDA (A) by business segment is reconciled to IFRS Accounting Standards measure, namely operating income (loss), and is shown in the following table:
For the 3-month period ended March 31, 2025
Corporate,
Recovery and
(in millions of Canadian Packaging Recycling
dollars) (unaudited) Products Tissue Papers activities Consolidated
------------------------ --------- ------------- ------------ ------------
Operating income (loss) 60 24 (34) 50
------------------------ --------- ------------- ------------ ------------
Depreciation and
amortization 46 13 10 69
Impairment charges -- -- 1 1
Other loss 4 -- -- 4
Restructuring costs 1 -- 4 5
Unrealized gain on
derivative financial
instruments (2) -- (2) (4)
EBITDA (A) 109 37 (21) 125
------------------------ --------- ------------- ------------ ------------
Supply chain and
logistic and Wage and
employee benefits
expenses included in
operating income (loss) 603 304 52 959
------------------------ --------- ------------- ------------ ------------
For the 3-month period ended March 31, 2024
Corporate,
Recovery and
(in millions of Canadian Packaging Recycling
dollars) (unaudited) Products Tissue Papers activities Consolidated
------------------------ --------- ------------- ------------ ------------
Operating income (loss) 12 31 (34) 9
------------------------ --------- ------------- ------------ ------------
Depreciation and
amortization 43 13 11 67
Impairment charges 2 -- -- 2
Other loss 3 -- -- 3
Restructuring costs 16 6 1 23
Unrealized gain on
derivative financial
instruments (1) -- -- (1)
EBITDA (A) 75 50 (22) 103
------------------------ --------- ------------- ------------ ------------
Supply chain and
logistic and Wage and
employee benefits
expenses included in
operating income (loss) 589 295 51 935
------------------------ --------- ------------- ------------ ------------
Payments for property, plant and equipment by business segment are shown in the following table:
PAYMENTS FOR PROPERTY, PLANT AND EQUIPMENT
--------------------------------------------
For the 3-month periods
ended March 31,
--------------------------------------------
(in millions of Canadian
dollars) (unaudited) 2025 2024
Packaging Products 34 14
Tissue Papers 8 8
Corporate, Recovery and
Recycling activities 6 6
Total acquisitions 48 28
Right-of-use assets acquisitions
and provisions (non-cash) (24) (3)
-------------------------------- --------------------- ---------------------
24 25
Acquisitions for property, plant
and equipment included in "Trade
and other payables"
Beginning of the period 32 45
End of the period (20) (29)
-------------------------------- --------------------- ---------------------
Payments for property, plant and
equipment 36 41
-------------------------------- --------------------- ---------------------
SUPPLEMENTAL INFORMATION ON NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES
SPECIFIC ITEMS
The Corporation incurs some specific items that adversely or positively affect its operating results. We believe it is useful for readers to be aware of these items as they provide additional information to measure performance, compare the Corporation's results between periods, and assess operating results and liquidity, notwithstanding these specific items. Management believes these specific items are not necessarily reflective of the Corporation's underlying business operations in measuring and comparing its performance and analyzing future trends. Our definition of specific items may differ from that of other corporations and some of these items may arise in the future and may reduce the Corporation's available cash.
They include, but are not limited to, charges for (reversals of) impairment of assets, restructuring gains or costs, loss on refinancing and repurchase of long-term debt, some deferred tax asset provisions or reversals, premiums paid on repurchase of long-term debt, gains or losses on the acquisition or sale of a business unit, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate hedge instruments and option fair value revaluation, foreign exchange gains or losses on long-term debt and financial instruments, fair value revaluation gains or losses on investments, specific items of discontinued operations and other significant items of an unusual, non-cash or non-recurring nature.
RECONCILIATION AND USES OF NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES
To provide more information for evaluating the Corporation's performance, the financial information included in this analysis contains certain data that are not performance measures under IFRS Accounting Standards ("non-IFRS Accounting Standards measures"), which are also calculated on an adjusted basis to exclude specific items. We believe that providing certain key performance and capital measures, as well as non-IFRS Accounting Standards measures, is useful to both Management and investors, as they provide additional information to measure the performance and financial position of the Corporation. This also increases the transparency and clarity of the financial information. The following non-IFRS Accounting Standards measures and other financial measures are used in our financial disclosures:
Non-IFRS Accounting Standards measures
-- Adjusted earnings before interest, taxes, depreciation and amortization
or EBITDA (A): represents the operating income (as published in the
Consolidated Statements of Earnings (Loss) of the Consolidated Financial
Statements) before depreciation and amortization excluding specific
items. Measure used to assess recurring operating performance and the
contribution of each segment on a comparable basis.
-- Adjusted net earnings: Measure used to assess the Corporation's
consolidated financial performance on a comparable basis.
-- Adjusted cash flow: Measure used to assess the Corporation's capacity to
generate cash flows to meet financial obligations and/or discretionary
items such as share repurchases, dividend increases and strategic
investments.
-- Free cash flow: Measure used to calculate the excess cash the Corporation
generates by subtracting capital expenditures (excluding strategic
projects) from the EBITDA (A).
-- Working capital: Measure used to assess the short-term liquidity of the
Corporation.
Other financial measures
-- Total debt: Measure used to calculate all the Corporation's debt,
including long-term debt and bank loans. Often put in relation to equity
to calculate the debt-to-equity ratio.
-- Net debt: Measure used to calculate the Corporation's total debt less
cash and cash equivalents. Often put in relation to EBITDA (A) to
calculate net debt to EBITDA (A) ratio.
Non-IFRS Accounting Standards ratios
-- Net debt to EBITDA (A) ratio: Ratio used to assess the Corporation's
ability to pay its debt and evaluate financial leverage.
-- EBITDA (A) margin: Ratio used to assess operating performance and the
contribution of each segment on a comparable basis calculated as a
percentage of sales.
-- Adjusted net earnings per common share: Ratio used to assess the
Corporation's consolidated financial performance on a comparable basis.
-- Ratio of net debt / (total equity and net debt): Ratio used to evaluate
the Corporation's financial leverage and the risk to Shareholders.
-- Working capital as a percentage of sales: Ratio used to assess the
Corporation's operating liquidity performance.
-- Adjusted cash flow per common share: Ratio used to assess the
Corporation's financial flexibility.
-- Free cash flow ratio: Ratio used to measure the liquidity and efficiency
of how much more cash the Corporation generates than it uses to run the
business by subtracting capital expenditures (excluding strategic
projects) from the EBITDA (A) calculated as a percentage of sales.
Non-IFRS Accounting Standards measures and other financial measures are mainly derived from the consolidated financial statements, but do not have meanings prescribed by IFRS Accounting Standards. These measures have limitations as an analytical tool and should not be considered on their own or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. In addition, our definitions of non-IFRS Accounting Standards measures and other financial measures may differ from those of other corporations. Any such modification or reformulation may be significant.
In the fourth quarter of 2024, the Corporation announced organizational changes designed to support its strategic growth. These changes involve the combination of the Containerboard and Specialty Products activities into a single operational unit. Since January 2025, the Corporation's operations are managed in two segments: Packaging Products and Tissue Papers. The comparative figures have been restated to conform with the current year's presentation.
The CODM assesses the performance of each reportable segment based on sales and earnings before interest, taxes, depreciation and amortization, adjusted to exclude specific items (EBITDA (A)(1) ). The CODM considers EBITDA (A)(1) to be the best performance measure of the Corporation's activities.
EBITDA (A)(1) by business segment is reconciled to IFRS Accounting Standards measure, namely operating income (loss), and is shown in the following table:
Q1 2025
Corporate,
Recovery and
(in millions of Canadian Packaging Tissue Recycling
dollars) (unaudited) Products Papers activities Consolidated
------------------------ ---------- ------------ ------------ ------------
Operating income (loss) 60 24 (34) 50
------------------------ ---------- ------------ ------------ ------------
Depreciation and
amortization 46 13 10 69
Impairment charges -- -- 1 1
Other loss 4 -- -- 4
Restructuring costs 1 -- 4 5
Unrealized gain on
derivative financial
instruments (2) -- (2) (4)
EBITDA (A)(1) 109 37 (21) 125
------------------------ ---------- ------------ ------------ ------------
Supply chain and
logistic and Wage and
employee benefits
expenses included in
operating income (loss) 603 304 52 959
------------------------ ---------- ------------ ------------ ------------
Q4 2024
Corporate,
Recovery and
(in millions of Canadian Packaging Recycling
dollars) (unaudited) Products Tissue Papers activities Consolidated
------------------------ --------- ------------- ------------ ------------
Operating income (loss) 58 4 (46) 16
------------------------ --------- ------------- ------------ ------------
Depreciation and
amortization 48 14 14 76
Impairment charges 32 23 -- 55
Other gain (7) -- (1) (8)
Restructuring costs 2 4 2 8
Unrealized gain on
derivative financial
instruments (1) -- -- (1)
EBITDA (A)(1) 132 45 (31) 146
------------------------ --------- ------------- ------------ ------------
Supply chain and
logistic and Wage and
employee benefits
expenses included in
operating income (loss) 609 325 64 998
------------------------ --------- ------------- ------------ ------------
1 Please refer to the "Supplemental Information on Non-IFRS Accounting
Standards Measures and Other Financial Measures" section for a complete
reconciliation.
Q1 2024
Corporate,
Recovery and
(in millions of Canadian Packaging Recycling
dollars) (unaudited) Products Tissue Papers activities Consolidated
------------------------ --------- ------------- ------------ ------------
Operating income (loss) 12 31 (34) 9
------------------------ --------- ------------- ------------ ------------
Depreciation and
amortization 43 13 11 67
Impairment charges 2 -- -- 2
Other loss 3 -- -- 3
Restructuring costs 16 6 1 23
Unrealized gain on
derivative financial
instruments (1) -- -- (1)
EBITDA (A)(1) 75 50 (22) 103
------------------------ --------- ------------- ------------ ------------
Supply chain and
logistic and Wage and
employee benefits
expenses included in
operating income (loss) 589 295 51 935
------------------------ --------- ------------- ------------ ------------
The following table reconciles net earnings (loss) and net earnings (loss) per common share, as reported, with adjusted net earnings (loss)(1) and adjusted net earnings (loss) per common share(1) :
(in millions of
Canadian dollars,
except per common
share amounts and
number of common
shares) NET EARNINGS (LOSS)
(unaudited) NET EARNINGS (LOSS) PER COMMON SHARE2
----------------- -------------------
Q1 Q4
2025 2024 Q1 2024 Q1 2025 Q4 2024 Q1 2024
---- ---- ------- ----------- ----------- -----------
As reported 7 (13) (20) $0.07 ($0.13) ($0.20)
Specific items:
Impairment
charges 1 55 2 $0.01 $0.41 $0.01
Other loss
(gain) 4 (8) 3 $0.03 ($0.07) $0.02
Restructuring
costs 5 8 23 $0.04 $0.06 $0.18
Unrealized gain
on derivative
financial
instruments (4) (1) (1) ($0.03) ($0.01) ($0.01)
Unrealized gain
on interest
rate hedge
instrument -- (2) (2) -- ($0.02) ($0.01)
Foreign exchange
loss on
long-term debt
and financial
instruments -- 1 1 -- $0.01 $0.01
Tax effect on
specific items,
other tax
adjustments and
attributable to
non-controlling
interest(2) -- (15) (6) $0.01 -- --
----------------- ---- ---- ------- ----------- ----------- -----------
6 38 20 $0.06 $0.38 $0.20
----------------- ---- ---- ------- ----------- ----------- -----------
Adjusted(1) 13 25 -- $0.13 $0.25 --
----------------- ---- ---- ------- ----------- ----------- -----------
Weighted average
basic number of
common shares
outstanding 100,993,811 100,988,040 100,703,177
----------------- ---- ---- ------- ----------- ----------- -----------
The following table reconciles cash flow from operating activities with EBITDA (A)(1) :
(in millions of Canadian dollars) (unaudited) Q1 2025 Q4 2024 Q1 2024 --------------------------------------------------- ------- ------- ------- Cash flow from operating activities (52) 154 (38) Changes in non-cash working capital components 97 (45) 70 Net income taxes paid 2 -- 5 Net financing expense paid 49 22 47 Provisions for charges and other liabilities, net of dividends received 29 15 19 EBITDA (A)(1) 125 146 103 --------------------------------------------------- ------- ------- ------- 1 Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation. 2 Specific amounts per common share are calculated on an after-tax basis and are net of the portion attributable to non-controlling interests. Per share amounts in line item "Tax effect on specific items, other tax adjustments and attributable to non-controlling interests" only include the effect of tax adjustments. Please refer to "Provision for (recovery of) income taxes" section for more details.
The following table reconciles cash flow from operating activities with cash flow from operating activities (excluding changes in non-cash working capital components) and adjusted cash flow from operating activities(1) . It also reconciles adjusted cash flow from operating activities(1) to adjusted cash flow generated (used)(1) , which is also calculated on a per common share basis:
(in millions of Canadian dollars,
except per common share amounts or
otherwise noted) (unaudited) Q1 2025 Q4 2024 Q1 2024
--------------------------------------- ----------- ----------- -----------
Cash flow from operating activities (52) 154 (38)
Changes in non-cash working capital
components 97 (45) 70
--------------------------------------- ----------- ----------- -----------
Cash flow from operating activities
(excluding changes in non-cash working
capital components) 45 109 32
Restructuring costs paid 17 20 14
Adjusted cash flow from operating
activities(1) 62 129 46
Payments for property, plant and
equipment (36) (45) (41)
Change in intangible and other assets 1 (3) --
Lease obligation payments (18) (17) (20)
Proceeds from disposals of property,
plant and equipment -- 16 --
9 80 (15)
Dividends paid to non-controlling
interests (3) (3) (3)
Dividends paid to the Corporation's
Shareholders and to non-controlling
interests (12) (12) (12)
--------------------------------------- ----------- ----------- -----------
Adjusted cash flow generated (used)(1) (6) 65 (30)
Adjusted cash flow generated (used) per
common share(1) (in Canadian
dollars) ($0.06) $0.64 ($0.30)
--------------------------------------- ----------- ----------- -----------
Weighted average basic number of common
shares outstanding 100,993,811 100,988,040 100,703,177
--------------------------------------- ----------- ----------- -----------
The following table reconciles total debt(1) and net debt(1) with the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))(1) :
(in millions of Canadian dollars) March 31, December 31, March 31, (unaudited) 2025 2024 2024 --------------------- ----------------- ----------------- ----------------- Long-term debt 1,873 1,871 1,816 Current portion of unsecured senior notes of $296 million to be refinanced ($175 million in 2024) 296 175 175 Current portion of long-term debt 72 67 58 Bank loans and advances 4 10 2 --------------------- ----------------- ----------------- ----------------- Total debt(1) 2,245 2,123 2,051 Less: Cash and cash equivalents (29) (27) (31) --------------------- ----------------- ----------------- ----------------- Net debt(1) as reported 2,216 2,096 2,020 Last twelve months EBITDA (A)(1) 523 501 527 --------------------- ----------------- ----------------- ----------------- Net debt / EBITDA (A) 4.2x 4.2x 3.8x ratio(1) --------------------- ----------------- ----------------- ----------------- 1 Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation.
View original content:https://www.prnewswire.com/news-releases/cascades-reports-results-for-the-first-quarter-of-2025-302449330.html
SOURCE Cascades Inc.
(END) Dow Jones Newswires
May 08, 2025 06:00 ET (10:00 GMT)
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