Note: Financial references in US dollars unless otherwise
indicated.
Q1 2020 HIGHLIGHTS
- Adjusted EBITDA of $75 million
and Adjusted earnings of $0.26 per
diluted share
- Reduced North American unit manufacturing costs by 2%
quarter-over-quarter and 4%year-over-year
- Liquidity of $247 million at
quarter-end, after $69 million
seasonal investment in working capital
- Declared quarterly variable dividend of C $0.05 per share for shareholders of record on
June 1, 2020
- Implemented COVID-19 Response Plan and related adjustments
to operating configuration and cash conservation measures
TORONTO, May 6, 2020 /PRNewswire/ - Norbord Inc. (TSX
and NYSE: OSB) today reported Adjusted EBITDA of $75 million for the first quarter of 2020
compared to $27 million in the fourth
quarter of 2019 and $42 million in
the first quarter of 2019. The quarter-over-quarter increase was
primarily driven by higher realized North American oriented strand
board (OSB) prices and shipments while the year-over-year increase
was driven by higher realized North American OSB prices and lower
raw material and energy prices, partially offset by lower
shipments. North American operations generated Adjusted EBITDA of
$68 million compared to $20 million in the fourth quarter of 2019 and
$23 million in the first quarter of
2019, and European operations delivered Adjusted EBITDA of
$10 million compared to $11 million in the fourth quarter of 2019 and
$21 million in the first quarter of
2019.
"The first quarter of this year was off to a strong start, as
the improved housing activity in late 2019 carried into 2020. In
fact, our Adjusted EBITDA almost doubled from year-ago levels and
was our best result in six quarters," said Peter Wijnbergen,
Norbord's President & CEO. "The quarter would have been even
better but for the effects of the COVID-19 pandemic, which began to
impact demand from a number of our customers towards the end of
March. In spite of the immediate challenges presented by COVID-19,
I am pleased with our company's ability to respond appropriately
and adapt quickly. Our employees have demonstrated resilience in
the face of uncertainty and changing workplace conditions, as well
as flexibility to continue meeting the needs of our customers. No
one knows how this pandemic will ultimately unfold, but the team at
Norbord has been working diligently to build contingency plans and
has taken decisive actions to retain operating flexibility,
preserve jobs for as many employees as practicable, and ensure we
are prepared for a return to growth when market conditions improve.
Most importantly, we are doing all this while keeping the health
and safety of our employees front and centre as our top
priority."
Norbord recorded Adjusted earnings of $21
million or $0.26 per share
(basic and diluted) versus an Adjusted loss of $11 million or $0.13 per share (basic and diluted) in the fourth
quarter of 2019 and an Adjusted loss of $2
million or $0.02 per share
(basic and diluted) in the first quarter of 2019. Adjusted earnings
(loss) exclude non-recurring or other items and use a normalized
income tax rate:
$
millions
|
Q1
2020
|
Q4 2019
|
Q1 2019
|
Earnings
(loss)
|
20
|
(12)
|
1
|
Adjusted
for:
|
|
|
|
Loss on
disposal of assets
|
-
|
2
|
-
|
Stock-based
compensation and related costs
|
-
|
1
|
1
|
Reported
income tax expense (recovery)
|
8
|
(6)
|
(5)
|
Adjusted pre-tax
earnings (loss)
|
28
|
(15)
|
(3)
|
Income tax
(expense) recovery at statutory rate(1)
|
(7)
|
4
|
1
|
Adjusted earnings
(loss)
|
21
|
(11)
|
(2)
|
(1)
|
Represents Canadian
combined federal and provincial statutory rate.
|
COVID-19 Response
Workplace Health and Safety
In February, the Company formed a COVID-19 Response Team to
closely and continuously monitor developments and began introducing
policies and recommending actions to stay ahead of the effects of
the coronavirus.
At Norbord's mills, considerable precautions were established to
ensure the continued health and safety of employees, their families
and the communities in which the Company operates. Specifically,
procedures were implemented to ensure adequate personal protective
equipment was available and utilized and cleaning techniques were
enhanced across all mills. Rotating schedules were developed to
limit cross-shift contact and employees were restricted to certain
areas of the mills, with staggered start times and lunch breaks to
limit close interactions. Where necessary for employees to interact
with each other, procedures were established to ensure physical
distancing. Cumulatively, these steps have enabled all Norbord
mills to remain open.
Safety performance this quarter showed a notable 32% improvement
over the same quarter last year, reflecting the impact of the
company-wide "Stronger Together" safety initiative launched in 2019
and the continued focus by all employees during a period in which
many workplace changes had to be introduced.
Business and Operations Planning
As it became clear that the economic impact of the pandemic
would be significant, business preparedness teams were established
to effectively monitor, assess and manage emerging risks. All
non-essential travel was cancelled and self-isolation policies were
enacted for those employees who had traveled outside their
respective home countries. The Company's corporate and mill office
employees have been working remotely since mid-March. Business
continuity plans were invoked across the Company and key business
systems were realigned with remote and secure access, including the
rapid deployment of tools and capacity that enabled employees to
efficiently work from outside the office.
On March 25, Norbord announced
adjustments to its operating configuration, which included reducing
shifts and running a number of its North American OSB mills on
alternating schedules to match production with reduced OSB demand.
Norbord's European business has subsequently taken similar action
by adjusting mill operating schedules to match production with
reduced panel demand.
In April, Norbord reduced its North American and European
operating mill capacity by approximately 35%. The customer demand
situation remains fluid, and the Company's ability to continue to
operate any of its mills could be influenced by factors outside
Norbord's control, including government-imposed restrictions,
therefore additional operating adjustments may be necessary. The
Company does not intend to provide intra-quarter operational
updates unless there is a significant change in this curtailment
strategy.
Customer Demand and Supply Chain
Currently, in most of the regions in which Norbord operates, the
forest products industry has been designated as essential to
support critical infrastructure and construction projects. To-date,
none of the Company's mills have been required to close for
extended periods under government restrictions and Norbord has not
experienced any significant raw material or other supply
disruptions. The Company benefits from a supply chain that is
largely domestic and regional in nature, with virtually no reliance
on imports. Further, most of Norbord's customers in the home
building and repair-and-remodeling sectors continue to operate,
albeit with some at reduced activity levels. A number of the
Company's industrial customers that manufacture products deemed to
be non-essential had to suspend operations in March, but some have
started re-opening in the past three weeks.
Liquidity and Capital Allocation
Norbord's liquidity remains strong at $247 million as at quarter-end, even after
investing $69 million in the usual
first quarter seasonal operating working capital build. The Company
continues to monitor its balance sheet and cash flows closely and
has comfortable headroom against the financial covenants governing
access to its committed credit facilities. Core long-term bond debt
totals $665 million, with no
maturities until 2023.
As previously announced, Norbord is deferring non-critical
capital projects and has reduced its 2020 capital expenditures
budget by an additional 25%, from $100
million to $75 million. The
minimum annual investment required to maintain the Company's
existing assets is approximately $35
million.
During the quarter, Norbord repurchased approximately 1.0
million shares under its Normal Course Issuer Bid (NCIB) and
continues to believe its stock is trading at a significant discount
to intrinsic value. However, to preserve financial flexibility
given the uncertainty surrounding the short- and medium-term
outlook, the Company minimized share repurchases starting in early
March and suspended all repurchases during its first quarter
blackout period.
Given the uncertain economic outlook, the Board of Directors has
reduced the quarterly dividend to C $0.05 per common share from C $0.20 last quarter, which is consistent with
Norbord's variable dividend policy and the Company's historically
balanced approach to capital allocation.
Business Outlook
While there remains considerable uncertainty around the depth
and duration of the economic impact of the ongoing COVID-19
pandemic, a number of Norbord's markets, in particular Germany and North American
repair-and-remodeling, have to-date been more resilient than
expected. The Company will continue to adjust operations as needed
and prudently manage costs and capital expenditures to protect
balance sheet flexibility. The Company will also consider
additional means to conserve cash, augment existing liquidity and
will avail itself, as appropriate, of government support programs
where eligible in the regions in which it operates.
"Though the decisions to curtail production across the Company
under Norbord's COVID-19 Response Plan are difficult, they are also
necessary, reflecting the broader economic uncertainties," added
Mr. Wijnbergen. "Our management team has depth of experience in
this industry and a proven track record of operating through
difficult market conditions. Norbord has a conservative balance
sheet with adequate liquidity, an operating configuration with
considerable flexibility, committed employees and the necessary
resolve to be agile in meeting the challenges that lay
ahead."
Market Conditions
In North America, US new home
construction, the single largest driver of OSB demand, continued to
strengthen through most of the quarter. The seasonally adjusted
annualized rate of US housing starts averaged 1.60 million units in
January and February, up 31% year-over-year, with single-family
starts, which use approximately three times more OSB than
multifamily starts, up similarly. US starts declined to a pace of
1.22 million in March following the impact of COVID-19 which was
slightly ahead of the pace in March
2019. The pace of permits (the more forward-looking
indicator) averaged 1.51 million units in January and February,
before pulling back to 1.35 million in March, which was still 5%
higher than March 2019. Several US
housing economists have yet to update their US housing starts
forecasts for 2020 to reflect the economic impact of COVID-19, but
the consensus forecast amongst those who have is approximately 1.15
million units, or about 10% below 2019 levels.
North American benchmark OSB prices increased throughout most of
the quarter before the impact of the COVID-19 pandemic took hold.
Average benchmark prices across all regions were significantly
higher against both comparative quarters. The table below
summarizes average benchmark prices ($ per Msf, 7/16-inch basis) by
region for the relevant periods:
North American
region
|
% of Norbord's
operating capacity
|
Q1
2020
|
Q4 2019
|
Q1 2019
|
North
Central
|
15%
|
271
|
223
|
211
|
South East
|
36%
|
251
|
199
|
197
|
Western
Canada
|
29%
|
255
|
190
|
160
|
In Europe, panel demand
improved significantly through most of the quarter before pulling
back as the COVID-19 pandemic forced many of the Company's UK
customers to close operations toward the end of March. In local
currency terms, average panel prices continued the decline that
started in the third quarter of 2019 and were down 2%
quarter-over-quarter and 16% year-over-year.
Performance
In North America, first quarter
shipments were up 9% quarter-over-quarter with six additional
fiscal days in the current quarter contributing to the increase.
First quarter shipments were down 7% year-over-year primarily due
to the indefinite curtailments of the 100 Mile House, British Columbia mill and Line 1 at the
Cordele, Georgia mill in 2019.
Excluding the Chambord, Quebec
mill, Norbord's North American mills produced at 79% of available
capacity in the first quarter of 2020 compared to 77% in the fourth
quarter of 2019 and 85% in the first quarter of 2019. The
quarter-over-quarter increase in capacity utilization (which is
based on fiscal days in each period) was due to improved
productivity in the current quarter as well as the timing of annual
maintenance shuts and other downtime. The year-over-year decrease
was due to the 2019 indefinite curtailments of 100 Mile House and
Cordele Line 1.
Norbord's first quarter North American OSB cash production costs
per unit (excluding mill profit share and freight costs) decreased
by 2% compared to the fourth quarter of 2019 and 4% compared to the
first quarter of 2019. Quarter-over-quarter, unit costs decreased
primarily due to improved productivity and the timing of annual
maintenance shuts and other downtime. Year-over-year, unit costs
were lower primarily due to lower raw material and energy prices,
improved productivity and the timing of annual maintenance
shuts.
In Europe, Norbord's first
quarter shipments were up 26% quarter-over-quarter due to the
continued ramp-up of the Inverness,
Scotland mill and the additional fiscal days, but were down
4% year-over-year due to the economic impact of COVID-19. The
European mills produced at 93% of stated capacity in the first
quarter of 2020, compared to 87% in the fourth quarter of 2019 and
89% in the first quarter of 2019. Capacity utilization was higher
versus both comparative periods primarily due to the continued
ramp-up of the Inverness mill,
which started up in the fourth quarter of 2017.
The Company generated net Margin Improvement Program (MIP) gains
of $21 million during the quarter
from improved productivity and product mix, and the timing of
annual maintenance shuts and other downtime, as well as lower
selling, general and administrative costs. MIP is measured relative
to the prior year at constant prices and exchange rates.
Investment in property, plant and equipment and intangible
assets was $25 million in the first
quarter of 2020, including $9 million
($37 million project-to-date) in the
Inverness phase 2 project and
$2 million ($53 million project-to-date) in the Chambord mill rebuild project. The Company has
not yet made a restart decision for the Chambord mill, however, and will only do so
when it is sufficiently clear that customers require the production
from this mill.
As part of Norbord's COVID-19 Response Plan, Norbord's budgeted
2020 investment in property, plant and equipment has been reduced
from $100 million to $75 million for maintenance of business projects
and projects focused on reducing manufacturing costs across the
Company's mills, as well as a portion of the Chambord mill rebuild and Inverness phase 2 projects. It also includes
investments to support the Company's strategy to increase the
production of specialty products for industrial applications and
exports.
Operating working capital was $197
million at period-end, compared to $120 million at December
31, 2019 and $183 million at
April 6, 2019. The
quarter-over-quarter increase was primarily due to the timing of
payments, the usual seasonal build of log inventory in the northern
mills in North America as well as
the accounts receivable impact of higher sales volumes and North
American OSB prices. The year-over-year increase was primarily due
to the timing of payments, partially offset by the accounts
receivable impact of lower sales volumes and lower average European
panel prices. The Company aims to minimize the amount of capital
held as operating working capital and continues to manage it at
minimal levels.
At year-end, the Company had unutilized liquidity of
$247 million, comprising $30 million in cash and cash equivalents and
$217 million in revolving bank lines.
The Company's tangible net worth was $986
million and net debt to capitalization on a book basis was
40%, with both values well within bank covenants.
Dividend
The Board of Directors declared a quarterly variable dividend of
C $0.05 per common share, payable on
June 22, 2020 to shareholders of
record on June 1, 2020. Consistent
with the Company's variable dividend policy, the dividend is being
reduced from the prior quarter's level of C $0.20 per common share to preserve liquidity and
balance sheet flexibility given the economic uncertainty from the
ongoing COVID-19 pandemic. Any dividends reinvested on June 22, 2020 under the Company's Dividend
Reinvestment Plan will be used by the transfer agent to purchase
common shares on the open market.
Norbord's dividends are declared in Canadian dollars. Registered
and beneficial shareholders may opt to receive their dividends in
either Canadian dollars or the US dollar equivalent. Unless they
request the US dollar equivalent, shareholders will receive
dividends in Canadian dollars. The US dollar equivalent of the
dividend will be based on the Bloomberg FX Fixings Service (BFIX)
noon exchange rate on the record date or, if the record date falls
on a weekend or holiday, on the BFIX noon exchange rate of the
preceding business day.
Registered shareholders wishing to receive the US dollar
dividend equivalent should contact Norbord's transfer agent, AST
Trust Company (Canada), by phone
at 1-800-387-0825 or by email at inquiries@canstockta.com.
Beneficial shareholders (i.e., those holding their Norbord shares
with their brokerage) should contact the broker with whom their
shares are held.
Norbord's variable dividend policy targets the payment to
shareholders of a portion of free cash flow based upon the
Company's financial position, results of operations, cash flow,
capital requirements and restrictions under the Company's revolving
bank lines, as well as the market outlook for the Company's
principal products and broader market and economic conditions,
among other factors. The Board retains the discretion to amend the
Company's dividend policy in any manner and at any time as it may
deem necessary or appropriate in the future. For these reasons, as
well as others, the Board in its sole discretion can decide to
increase, maintain, decrease, suspend or discontinue the payment of
cash dividends in the future.
Normal Course Issuer Bid
During the first quarter of 2020, 1.0 million shares were
purchased under the Company's NCIB at a cost of $22 million. Common shares purchased under the
bid were cancelled. Norbord has repurchased a total of 1.2 million
shares to-date under its current bid at a cost of $27 million.
Additional Information
Norbord's Q1 2020 news release, management's discussion and
analysis, consolidated unaudited financial statements and notes to
the financial statements have been filed on SEDAR (www.sedar.com),
EDGAR (www.sec.gov) and are available in the investor section of
the Company's website at www.norbord.com. Shareholders may receive
a hard copy of Norbord's audited annual financial statements free
of charge upon request. The Company has also made available on its
website presentation materials containing certain historical and
forward-looking information relating to Norbord, including
materials that contain additional information about the Company's
financial results. Shareholders are encouraged to read this
material.
Conference Call
Norbord will hold a conference call for analysts and
institutional investors on Wednesday, May 6,
2020 at 2:00 p.m. ET. The call
will be broadcast live over the internet via www.norbord.com and
www.newswire.ca. An accompanying presentation will be available in
the "Investors/Conference Call" section of the Norbord website
prior to the start of the call. A replay number will be available
approximately one hour after completion of the call and will be
accessible until June 5, 2020 by
dialing 1-888-203-1112 or 647-436-0148 (passcode 9392296 and pin
9607). Audio playback and a written transcript will be available on
the Norbord website.
Norbord Profile
Norbord Inc. is a leading global manufacturer of wood-based
panels and the world's largest producer of oriented strand board
(OSB). In addition to OSB, Norbord manufactures particleboard,
medium density fibreboard and related value-added products. Norbord
has assets of approximately $1.9
billion and employs approximately 2,400 people at 17 plant
locations in the United States,
Canada and Europe. Norbord is a publicly traded company
listed on the Toronto Stock Exchange and New York Stock Exchange
under the symbol "OSB".
This news release contains forward-looking statements, as
defined by applicable securities legislation, including statements
related to our strategy, projects, plans, future financial or
operating performance and other statements that express
management's expectations or estimates of future performance.
Often, but not always, forward-looking statements can be identified
by the use of words such as "set up," "on track," "expect,"
"estimate," "forecast," "target," "outlook," "schedule,"
"represent," "continue," "intend," "should," "would," "could,"
"will," "can," "might," "may," and other expressions which are
predictions of or indicate future events, trends or prospects and
which do not relate to historical matters identify forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Norbord to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Although Norbord believes it has a reasonable basis for
making these forward-looking statements, readers are cautioned not
to place undue reliance on such forward-looking information. By its
nature, forward-looking information involves numerous assumptions,
inherent risks and uncertainties, both general and specific, which
contribute to the possibility that the predictions, forecasts and
other forward-looking statements will not occur. These factors
include, but are not limited to: (1) developments related to
COVID-19 or any other plague, epidemic, pandemic, outbreak of
infectious disease or any other public health crisis, including
health and safety measures instituted to protect the Company's
employees, government-imposed restrictions or other restrictions
that may apply to the Company's employees and/or operations
(including quarantine), the impact on customer demand, supply and
distribution and other factors; (2) assumptions in connection with
the economic and financial conditions in the US, Europe, Canada and globally; (3) risks inherent to
product concentration and cyclicality; (4) effects of competition
and product pricing pressures; (5) risks inherent to customer
dependence; (6) effects of variations in the price and availability
of manufacturing inputs, including continued access to fibre
resources at competitive prices and the impact of third-party
certification standards; (7) availability of transportation
services, including truck and rail services, and port facilities;
(8) various events that could disrupt operations, including
natural, man-made or catastrophic events and ongoing relations with
employees; (9) impact of changes to, or non-compliance with,
environmental or other regulations; (10) government restrictions,
standards or regulations intended to reduce greenhouse gas
emissions; (11) impact of weather and climate change on Norbord's
operations or the operations or demand of its suppliers and
customers; (12) impact of any product liability claims in excess of
insurance coverage;(13) risks inherent to a capital intensive
industry; (14) impact of future outcomes of tax exposures; (15)
potential future changes in tax laws, including tax rates; (16)
effects of currency exposures and exchange rate fluctuations; (17)
future operating costs; (18) availability of financing, bank lines,
securitization programs and/or other means of liquidity; (19)
impact of future cross-border trade rulings or agreements; (20)
implementation of important strategic initiatives and
identification, completion and integration of acquisitions; (21)
ability to implement new or upgraded information technology
infrastructure; (22) impact of information technology service
disruptions or failures; and (23) changes in government policy and
regulation.
The above list of important factors affecting forward-looking
information is not exhaustive. Additional factors are noted
elsewhere, and reference should be made to the other risks
discussed in filings with Canadian and US securities regulatory
authorities. Except as required by applicable law, Norbord does not
undertake to update any forward-looking statements, whether written
or oral, that may be made from time to time by, or on behalf of,
the Company, whether as a result of new information, future events
or otherwise, or to publicly update or revise the above list of
factors affecting this information. See the "Forward-Looking
Statements" section in the February 4,
2020 Annual Information Form and the cautionary statement
contained in the "Forward-Looking Statements" section
of the 2019 Management's Discussion and Analysis dated
February 4, 2020 and Q1 2020
Management's Discussion and Analysis dated May 5, 2020.
Norbord defines Adjusted EBITDA as earnings determined in
accordance with International Financial Reporting Standards (IFRS)
before finance costs, interest income, income taxes, depreciation,
amortization and non-recurring or other items; Adjusted earnings
(loss) as earnings determined in accordance with IFRS before
non-recurring or other items and using a normalized income tax
rate; and Adjusted earnings per share is Adjusted earnings divided
by the weighted average number of common shares outstanding (on a
basic or diluted basis, as specified). Adjusted EBITDA, Adjusted
earnings, and Adjusted earnings per share are non-IFRS financial
measures, do not have any standardized meaning prescribed by IFRS
and are therefore unlikely to be comparable to similar measures
presented by other companies. See "Non-IFRS Financial Measures" in
Norbord's 2019 Management's Discussion and Analysis dated
February 4, 2020 and Q1 2020
Management's Discussion and Analysis dated May 5, 2020 for a quantitative reconciliation of
Adjusted EBITDA and Adjusted earnings to earnings (the most
directly comparable IFRS measure).
Interim Consolidated Balance Sheets
(Unaudited)
(US $
millions)
|
Apr 4,
2020
|
Dec 31,
2019
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
30
|
$
|
20
|
Accounts
receivable
|
142
|
136
|
Taxes
receivable
|
40
|
63
|
Inventory
|
253
|
230
|
Prepaids
|
10
|
13
|
|
475
|
462
|
Non-current
assets
|
|
|
Property, plant and
equipment
|
1,397
|
1,427
|
Intangible
assets
|
19
|
21
|
Deferred income tax
assets
|
1
|
2
|
Other
assets
|
12
|
9
|
|
1,429
|
1,459
|
|
$
|
1,904
|
$
|
1,921
|
Liabilities and
shareholders' equity
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
$
|
208
|
$
|
259
|
Taxes
payable
|
1
|
1
|
|
209
|
260
|
Non-current
liabilities
|
|
|
Long-term
debt
|
677
|
657
|
Other long-term
debt
|
95
|
68
|
Other
liabilities
|
34
|
40
|
Deferred income tax
liabilities
|
223
|
192
|
|
1,029
|
957
|
Shareholders'
equity
|
666
|
704
|
|
$
|
1,904
|
$
|
1,921
|
Interim Consolidated Statements of Earnings
|
|
|
(Unaudited)
|
Q1
2020
|
Q1 2019
|
Periods ended Apr 4
and Apr 6 (US $ millions, except per share information)
|
Sales
|
$
|
467
|
$
|
476
|
Cost of
sales
|
(389)
|
(432)
|
General and
administrative expenses
|
(3)
|
(3)
|
Depreciation and
amortization
|
(35)
|
(35)
|
Operating
income
|
40
|
6
|
Non-operating
items:
|
|
|
Finance
costs
|
(12)
|
(11)
|
Interest
income
|
—
|
1
|
Earnings (loss)
before income tax
|
28
|
(4)
|
Income tax (expense)
recovery
|
(8)
|
5
|
Earnings
|
$
|
20
|
$
|
1
|
Earnings per common
share
|
|
|
Basic and
diluted
|
$
|
0.25
|
$
|
0.01
|
Interim Consolidated Statements of Comprehensive (Loss)
Income
|
|
|
(Unaudited)
|
|
|
Periods ended Apr 4
and Apr 6 (US $ millions)
|
Q1
2020
|
Q1 2019
|
Earnings
|
$
|
20
|
$
|
1
|
Other comprehensive
(loss) income, net of tax
|
|
|
Items that will not
be reclassified to earnings:
|
|
|
Actuarial gain (loss)
on post-employment obligations
|
4
|
(1)
|
Items that may be
reclassified subsequently to earnings:
|
|
|
Foreign currency
translation (loss) gain on foreign operations
|
(29)
|
6
|
Other comprehensive
(loss) income, net of tax
|
(25)
|
5
|
Comprehensive (loss)
income
|
$
|
(5)
|
$
|
6
|
Interim Consolidated Statements of Changes in
Shareholders' Equity
(Unaudited)
Periods ended Apr 4
and Apr 6 (US $ millions)
|
Q1
2020
|
Q1 2019
|
Share
capital
|
|
|
Balance, beginning of
period
|
$
|
1,278
|
$
|
1,280
|
Issue of common
shares upon exercise of options
|
1
|
—
|
Common shares
repurchased and cancelled
|
(15)
|
(24)
|
Common shares
repurchased and cancelled under ASPP
|
—
|
24
|
Balance, end of
period
|
$
|
1,264
|
$
|
1,280
|
Merger
reserve
|
$
|
(96)
|
$
|
(96)
|
Contributed
surplus
|
$
|
4
|
$
|
4
|
Retained
deficit
|
|
|
Balance, beginning of
period
|
$
|
(299)
|
$
|
(168)
|
Earnings
|
20
|
1
|
Common share
dividends
|
(12)
|
(25)
|
Common shares
repurchased and cancelled
|
(7)
|
(19)
|
Common shares
repurchased and cancelled under ASPP
|
—
|
18
|
Balance, end of
period(i)
|
$
|
(298)
|
$
|
(193)
|
Accumulated other
comprehensive loss
|
|
|
Balance, beginning of
period
|
$
|
(183)
|
$
|
(197)
|
Other comprehensive
(loss) income
|
(25)
|
5
|
Balance, end of
period
|
$
|
(208)
|
$
|
(192)
|
Shareholders'
equity
|
$
|
666
|
$
|
803
|
(i)
Retained deficit comprised of:
|
|
|
Deficit arising on
cashless exercise of warrants in 2013
|
$
|
(263)
|
$
|
(263)
|
All other retained
(deficit) earnings
|
(35)
|
70
|
|
$
|
(298)
|
$
|
(193)
|
Interim Consolidated Statements of Cash Flows
(Unaudited)
Periods ended Apr 4
and Apr 6 (US $ millions)
|
Q1
2020
|
Q1 2019
|
CASH PROVIDED BY
(USED FOR):
|
|
|
Operating
activities
|
|
|
Earnings
|
$
|
20
|
$
|
1
|
Items not affecting
cash:
|
|
|
Depreciation and
amortization
|
35
|
35
|
Deferred income
tax
|
31
|
21
|
Other
items
|
4
|
18
|
|
90
|
75
|
Net change in
non-cash operating working capital balances
|
(69)
|
(111)
|
Net change in taxes
receivable and taxes payable
|
18
|
(61)
|
|
39
|
(97)
|
Investing
activities
|
|
|
Investment in
property, plant and equipment
|
(29)
|
(40)
|
Investment in
intangible assets
|
(1)
|
—
|
|
(30)
|
(40)
|
Financing
activities
|
|
|
Common share
dividends paid
|
(12)
|
(25)
|
Issue of common
shares
|
1
|
—
|
Repurchase of common
shares
|
(22)
|
(43)
|
Repayment of lease
obligations
|
(3)
|
(3)
|
Accounts receivable
securitization drawings
|
27
|
80
|
Revolving bank lines
drawings
|
20
|
—
|
|
11
|
9
|
Foreign exchange
revaluation on cash and cash equivalents held
|
(10)
|
2
|
Cash and cash
equivalents
|
|
|
Increase (decrease)
during period
|
10
|
(126)
|
Balance, beginning of
period
|
20
|
128
|
Balance, end of
period
|
$
|
30
|
$
|
2
|
View original
content:http://www.prnewswire.com/news-releases/norbord-reports-first-quarter-2020-earnings-provides-covid-19-update-declares-quarterly-dividend-301053525.html
SOURCE Norbord Inc.