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Exhibit 99.1
PRESS RELEASE
US $
RESOLUTE REPORTS PRELIMINARY FOURTH QUARTER AND 2013 RESULTS
| Q4 adjusted EBITDA of $110 million; $377 million in 2013 |
| Excluding special items, 2013 net earnings of $1.13 per share; $0.34 per share in Q4 |
| GAAP net loss of $6.75 per share in 2013, due mainly to tax charge; $0.03 per share in Q4 |
| Net pension & OPEB liability decreased by $672 million |
MONTREAL, CANADA, February 6, 2014 Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today reported net income, excluding special items ($746 million), of $107 million for the year ended December 31, 2013, up 24% compared to 2012, on sales of $4.5 billion, unchanged from prior year. Earnings per share, excluding special items ($7.88 per share), were $1.13, up 28% compared to 2012. GAAP net loss was $639 million in 2013, or $6.75 per share, compared to net income of $1 million, or $0.01 per share, in 2012.
In the fourth quarter of 2013, the Company reported net income, excluding special items ($35 million), of $32 million, or $0.34 per share, up 13% from the fourth quarter of 2012. GAAP net loss was $3 million in the quarter, or $0.03 per share, compared to a loss of $45 million, or $0.47 per share, in the fourth quarter of 2012. Sales were $1.2 billion, up 2% from the fourth quarter of 2012.
In 2013, 45% of adjusted EBITDA came from our market pulp and wood products businesses, said Richard Garneau, president and chief executive officer. Because of our diversified asset base, improvements in market pulp and wood products made up for a challenging year in paper grades. Weve taken important steps to grow these businesses with acquisitions and investment commitments, while at the same time optimizing paper assets to maximize capacity utilization and margins. We also continued to focus on costs to improve earnings power.
Non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are reconciled below.
CONSOLIDATED OPERATING INCOME VARIANCE
The Company recorded an operating loss of $2 million in 2013, compared to an operating loss of $28 million in 2012. Lower overall pricing and shipments offset improvements in manufacturing costs ($30 million) and the weaker Canadian dollar ($40 million). Although pricing and volumes improved in wood products and market pulp, they were overshadowed by this years market weakness in paper grades. Manufacturing costs improved because of the Companys asset optimization and mill restructuring initiatives and the effect of external power sales from new cogeneration facilities, offset in part by higher maintenance costs, higher fuel energy costs because of natural gas pricing and increased fiber costs. Overall shipment volumes rose compared to 2012, largely because of the acquisition of Fibrek Inc. in May of 2012. Closure costs, impairment and other related charges were $96 million lower due to the timing of asset optimization and mill restructuring initiatives. Selling, general and administrative expenses rose in the year ($17 million), largely because of credits recorded in 2012.
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Resolute Forest Products Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2014 10-K Annual Report includes:
Financial Statements, Disclosures and Schedules
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Resolute Forest Products Inc. provided additional information to their SEC Filing as exhibits
Ticker: RFP
CIK: 1393066
Form Type: 10-K Annual Report
Accession Number: 0001393066-14-000003
Submitted to the SEC: Mon Mar 03 2014 4:38:03 PM EST
Accepted by the SEC: Mon Mar 03 2014
Period: Tuesday, December 31, 2013
Industry: Paper Mills