KP Tissue Releases Fourth Quarter and Full Year 2019 Financial Results

Financial News

Mississauga (ON), March 12, 2020 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q4 2019 and full year 2019 financial and operational results of KPT and Kruger Products L.P. (KPLP).

Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market (Cashmere, Purex, SpongeTowels, Scotties, and White Swan) and the Away-From-Home market, and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 15.0% interest in KPLP.

KPLP Q4 2019 Business and Financial Highlights

  • Revenue decreased by $11.2 million or 3.1% to $348.1 million in Q4 2019 compared to $359.3 million in Q4 2018.
  • Excluding the divested Mexico business, Q4 2019 revenue increased by $13.1 million or 3.9%.
  • Adjusted EBITDA was $46.0 million in Q4 2019 compared to $24.5 million in Q4 2018, an increase of 87.5%.
  • TAD Sherbrooke facility progressing on time and on budget.
  • Declared a quarterly dividend of $0.18 per share to be paid on April 15, 2020.

KPLP Full Year 2019 Business and Financial Highlights

  • Revenue increased by 4.6% to $1,434.1 million in 2019 compared to $1,370.4 million in 2018.
  • Adjusted EBITDA was $145.0 million in 2019, up from $118.3 million in 2018, an increase of 22.6%.
  • Amended Senior Credit Facility to increase overall borrowing capacity by $50 million.

“Our fourth quarter Adjusted EBITDA increased by a strong 87.5% to $46.0 million compared to a weak Q4 last year. We are very pleased with Fiscal 2019’s performance, particularly with the strong second half, reflecting volume growth and the benefit of previous pricing actions in all business segments and a favourable cost environment,” said Dino Bianco, CEO of KP Tissue and KPLP.

“TAD Sherbrooke is progressing on all fronts as planned and on budget. The launch of commercial production remains on target for early 2021, which will allow us to continue to grow our business in North America with our brands and customers.

“Our operational transformation initiatives including the Operational Excellence (OpEx) program are yielding the anticipated cost savings and will continue into 2020 with a goal of $15 - $20 million on a run-rate basis by the end of this year. More importantly, the OpEx program is a significant component of KP’s transformational journey and will be an integral part of our culture going forward. “We enter 2020 with great confidence in our vision and strategic plan to move KP forward as a North American tissue leader. This would not be possible without the initiative of our exceptional and dedicated team,” concluded Mr. Bianco.

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Source: KP Tissue