Selected Highlights
- Strong fourth quarter net income of $45.0 million ($0.68 per diluted share) and record Operating EBITDA* of $118.1 million
- Record quarterly pulp production benefitting from our capital investments
- Strong 2018 net income of $128.6 million ($1.96 per diluted share) and record annual Operating EBITDA of $364.6 million
NEW YORK, NY, February 14, 2019 ‐ Mercer International Inc. (Nasdaq: MERC) today reported record results for the fourth quarter ended December 31, 2018 due to strong pulp sales realizations and record pulp production. Operating EBITDA in the current quarter increased to a record $118.1 million from $89.5 million in the fourth quarter of 2017 and $86.7 million in the third quarter of 2018.
For the fourth quarter of 2018, net income increased to $45.0 million, or $0.69 per basic share and $0.68 per diluted share, from $41.7 million, or $0.64 per share, in the fourth quarter of 2017 and $41.2 million, or $0.63 per share, in the prior quarter of 2018.
In 2018, Operating EBITDA increased to a record $364.6 million from $253.8 million in 2017. In fiscal 2018, net income was $128.6 million (or $1.96 per diluted share) after giving effect to $33.7 million (or $0.51 per diluted share) in debt settlement, legal cost award and acquisition commitment fee costs. In 2017, net income was $70.5 million (or $1.08 per diluted share), which included $10.7 million in debt settlement costs.
Mr. David M. Gandossi, the Chief Executive Officer, stated: "We are pleased with our record fourth quarter and 2018 results. They reflect record quarterly pulp production, which benefited from our capital investments and strong operating performance." He added: "Looking forward to 2019, we are excited by our recent significant expansion through the acquisition of Mercer Peace River Pulp Ltd. (formerly called Daishowa‐Marubeni International Ltd.) ("MPR") and the Santanol sandalwood business. MPR operates a swing NBSK and NBHK mill with an annual production capacity of approximately 475,000 ADMTs of pulp and has a 50% joint venture interest in another NBSK mill which represents approximately 170,000 ADMTs of additional annual pulp production capacity. MPR will materially increase our production, revenues and scope of operations in 2019. We are currently focused on integrating both of these operations to ensure a smooth transition and maximize available synergies with MPR. We are also continuing to execute on our value creation strategy of delivering sustainable profitable growth by
leveraging our core competencies to complement our world class assets."
Source: Mercer International
