NEW YORK, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Mercer International (NASDAQ: MERC) will release its fourth quarter results for the period ending December 31, 2024 on Thursday, February 20, 2025, after the close of the market. Juan Carlos Bueno, President and Chief Executive Officer and Richard Short, Chief Financial Officer and Secretary, will be hosting a conference call on Friday, February 21, 2025, at 10:00 am ET to discuss the results. The conference call will be available to interested parties live over t ...

Company Overview - Mercer International Inc. is a global forest products company with operations in Germany, the United States, and Canada [2] - The company has a consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210,000 cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels [2] Upcoming Events - Juan Carlos Bueno, President and CEO, and Richard Short, CFO & Secretary, will present at the 28th Annual CIBC Western Institutional Investor Conference from January 22 to January 24, 2025 [1] - The fireside chat is scheduled for 11:40 a.m. PST on January 22, 2025 [1]

Group 1 - The article emphasizes the enduring significance of paper in business despite the rise of digital alternatives [2] - The author expresses a strong interest in the industrial sector, highlighting its historical importance and operational performance [2] - The motivation behind sharing investment philosophies is to provide valuable insights to readers, particularly in the context of industrial companies [2] Group 2 - The author has a beneficial long position in the shares of a specific company, indicating a personal investment interest [1] - The article does not provide specific investment recommendations or advice, maintaining a neutral stance on investment suitability [3]

Mercer International TodayMERCMercer International$6.45 +0.07 (+1.10%) 52-Week Range$5.33▼$11.20Dividend Yield4.65%Price Target$9.13Add to WatchlistMercer International NASDAQ: MERC is an enticing stock for small-cap investors. It pays a quarterly dividend worth 4.55% in annualized yield and trades at rock-bottom prices in late 2024. The rock bottom is a critical support level that has been in place and retested numerous times for over 15 years, limiting the downside risk. The risk of lower prices is also ...

Financial Data and Key Metrics Changes - Operating EBITDA for Q3 2024 totaled $50 million, an increase from $30 million in Q2 2024, driven by fewer planned maintenance days [5][11] - Consolidated net loss for Q3 was $18 million or $0.26 per share, compared to a net loss of $68 million or $1.01 per share in Q2 [16] - Cash consumption in Q3 was approximately $24 million, up from $11 million in Q2, with liquidity position totaling $554 million, a decrease of $26 million from Q2 [17] Business Segment Data and Key Metrics Changes - Pulp segment contributed EBITDA of $55 million, while Solid Wood segment had a negative EBITDA of $2 million [6] - Lumber production for Q3 was 122 million board feet, a 10% increase from Q2, while lumber sales volumes were 109 million board feet, down 7% from Q2 [13] - Total production volume in Q3 was 416,000 tonnes, slightly down from Q2 due to unrelated production issues [10] Market Data and Key Metrics Changes - North American NBSK list price averaged $1,762 per tonne in Q3, an increase of $65 from Q2, while the average NBSK net price in China was $771 per tonne, down $40 from Q2 [7][8] - Hardwood prices in China decreased, with Q3 hardwood sales realizations at $632 per tonne, a decrease of $69 from Q2 [8] - The average price gap in China between softwood and hardwood pulp increased to about $140 in Q3 [8] Company Strategy and Development Direction - The company is focused on debt reduction as a key part of its capital allocation strategy, with a target of reaching a net debt to EBITDA ratio of about 2.5 times [47][49] - Investment in operations was approximately $27 million in Q3, with planned capital spending for 2024 expected to be between $95 million and $120 million [24] - The company aims to expand into green chemicals and products compatible with the circular economy, emphasizing sustainable alternatives to fossil fuel-based products [41][43] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding lumber demand and pricing in Q4 and into 2025, anticipating improvements due to reduced supply and stronger demand [32][44] - The company expects strong operating results from the Pulp segment in Q4 and into 2025, despite challenges in the Solid Wood segment due to weak economic conditions [44] - Management noted that unplanned downtime in Q3 negatively impacted production but emphasized that operational challenges were unrelated [20][28] Other Important Information - The company has reduced the principal balance of its senior note debt by $100 million through refinancing [18] - A quarterly dividend of $0.075 per share has been approved for shareholders of record on December 18, 2024 [19] - The company is well-prepared for potential disruptions from strikes at BC ports, having arranged alternative logistics [73][74] Q&A Session Summary Question: Deleveraging targets and asset sales - Management emphasized a focus on debt reduction and mentioned progress in the sale process of Santanol as a potential source of cash [46][48] Question: Long-term debt targets - The company aims for a net debt to EBITDA ratio of about 2.5 times in the long term [49] Question: Impact of potential U.S. tariffs on lumber imports - Management is monitoring the situation closely and believes they can adapt to changes in market conditions [50][52] Question: Competitive environment for mass timber projects - Management noted that mass timber is gaining traction and expects continued growth, despite current interest rate challenges [56][58] Question: Regional differences in lumber demand - The U.K. market has shown recovery, while overall demand in Europe is improving [64] Question: Fiber costs and sourcing strategies - Fiber costs have remained flat, with strategic sourcing from the U.S. helping to mitigate higher costs in Canada [66][68]

| --- | --- | --- | |----------------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world | | | | Q3 2024 Earnings Call November 1, 2024 | | | | Juan Carlos Bueno – President & CEO Richard Short – CFO, Executive VP & Secretary | | | | | | | Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File No.: 000-51826 MERCER INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) Washington 47-0956945 (State or ot ...

Revenue Performance - Total revenues increased to approximately $502.1 million in Q3 2024 from $470.8 million in Q3 2023[11] - Total revenues increased to approximately $1,555.0 million in the nine months ended September 30, 2024 from $1,523.4 million in the same period of 2023[12] Operating Income and EBITDA - Operating income was approximately $8.8 million in Q3 2024, compared to an operating loss of $3.4 million in Q3 2023[11] - Operating EBITDA was approximately $50.5 million in Q3 2024, compared to $37.5 million in Q3 2023[11] - Operating EBITDA was approximately $144.5 million in the nine months ended September 30, 2024, compared to negative Operating EBITDA of $3.7 million in the same period of 2023[12] - Operating EBITDA for the three months ended September 30, 2024, is preliminarily estimated at $50.5 million, up from $37.5 million in the same period in 2023[16] - Operating EBITDA for the nine months ended September 30, 2024, is preliminarily estimated at $144.5 million, compared to a loss of $3.7 million in the same period in 2023[16] Net Loss - Net loss was approximately $17.6 million in Q3 2024, compared to $26.0 million in Q3 2023[11] - Net loss was approximately $101.8 million in the nine months ended September 30, 2024, compared to $154.8 million in the same period of 2023[12] - Preliminary net loss for the three months ended September 30, 2024, is estimated at $17.6 million, compared to $26.0 million in the same period in 2023[16] - Preliminary net loss for the nine months ended September 30, 2024, is estimated at $101.8 million, compared to $154.8 million in the same period in 2023[16] Cash and Debt Position - Cash and cash equivalents were approximately $239.0 million as of September 30, 2024, compared to $314.0 million at the end of 2023[13] - Long-term debt was approximately $1,597.9 million as of September 30, 2024, compared to $1,609.4 million at the end of 2023[13] - Aggregate liquidity was $554.2 million as of September 30, 2024, including $315.2 million availability under credit facilities[13] Debt Redemption Plans - The company plans to redeem $300 million in principal amount of the 2026 Senior Notes, which bear interest at 5.500% per annum[18] - The 2026 Note Redemption will be conditioned upon the closing of the offering, with a redemption price of $1,000.00 per $1,000.00 in principal amount plus accrued and unpaid interest[18]

Core Insights - Mercer International Inc. reported a 35% increase in Operating EBITDA to $50.5 million for Q3 2024, compared to $37.5 million in Q3 2023, despite a net loss of $17.6 million [1][2][13] - The company experienced strong softwood pulp market conditions, although production was affected by unplanned downtime at the Peace River mill [3][5] - A quarterly cash dividend of $0.075 per share was announced, to be paid on December 26, 2024 [35] Financial Performance - Total revenues for Q3 2024 increased by approximately 7% to $502.1 million from $470.8 million in Q3 2023, driven by higher pulp and manufactured products sales realizations [11][30] - Operating income for Q3 2024 was $8.8 million, a significant improvement from a loss of $3.4 million in Q3 2023 [11][43] - The net loss for Q3 2024 was $17.6 million, an improvement from a net loss of $26.0 million in Q3 2023 [2][43] Pulp Segment Insights - Pulp revenues increased by approximately 11% to $354.2 million in Q3 2024 from $318.1 million in Q3 2023, primarily due to higher sales realizations [15][16] - Average NBSK pulp sales realizations rose by approximately 22% to $814 per ADMT in Q3 2024 from $666 per ADMT in Q3 2023 [16] - Total pulp production decreased by approximately 13% to 415,837 ADMTs in Q3 2024 compared to 479,924 ADMTs in Q3 2023, largely due to unplanned downtime [19] Solid Wood Segment Insights - Solid wood segment revenues increased by approximately 5% to $125.1 million in Q3 2024 from $119.5 million in Q3 2023, driven by higher manufactured products revenues [23] - The operating loss for the solid wood segment improved to $14.7 million in Q3 2024 from $19.7 million in Q3 2023 [22] - Manufactured products revenues surged by approximately 71% to $35.8 million in Q3 2024 from $20.9 million in Q3 2023, reflecting strong growth in the mass timber business [26] Market Conditions - Softwood pulp prices remained at historically high levels in North America and Europe, with positive pricing momentum observed in China towards the end of Q3 2024 [5][6] - Hardwood pulp prices in China decreased in Q3 2024 but are expected to stabilize in Q4 2024 [6] - Lumber sales realizations decreased slightly in Q3 2024 compared to Q2 2024, but moderate increments in lumber prices are anticipated in Q4 2024 [6][29] Debt and Liquidity - The company successfully refinanced $300 million of 2026 Senior Notes, reducing long-term debt by $100 million and extending maturity to 2028 [8] - As of September 30, 2024, the company had cash and cash equivalents of $239.0 million and total liquidity of approximately $554.2 million [34]

NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) (the "Company") today announced that it has completed its previously announced private offering of $200.0 million aggregate principal amount of 12.875% senior notes due October 1, 2028 (the "Additional Notes"). The Additional Notes were issued at a price of 103.000% of their principal amount, plus accrued interest from October 1, 2024, for a yield to worst of 11.624%. The Additional Notes were issued as additional notes und ...