Financial Performance - Total revenues for Q3 2023 decreased by approximately 12% to $470.8 million from $532.8 million in Q3 2022, primarily due to lower pulp, energy, and lumber sales realizations [120]. - Net loss for Q3 2023 was $25.96 million, compared to net income of $66.75 million in Q3 2022, resulting in a diluted loss per share of $0.39 [116]. - Total operating income for Q3 2023 was a loss of $3.43 million, down from an operating income of $108.72 million in Q3 2022 [116]. - Operating EBITDA decreased to $37.5 million in Q3 2023 from $140.9 million in Q3 2022, primarily due to lower pulp, energy, and lumber sales realizations [127]. - For the nine months ended September 30, 2023, the company reported an Operating EBITDA of negative $3.7 million, a significant decline from positive $440.4 million in the same period of 2022, primarily due to lower sales realizations and higher costs [160]. - Cash used in operating activities was $60.3 million in the nine months ended September 30, 2023, compared to cash provided of $310.0 million in the same period of 2022 [186]. Revenue Breakdown - Pulp segment revenues for Q3 2023 were $348.9 million, down from $456.7 million in Q3 2022, while solid wood segment revenues increased to $119.5 million from $74.3 million [116]. - Pulp revenues decreased by approximately 20% to $318.1 million in Q3 2023 from $395.5 million in Q3 2022, attributed to lower sales realizations [130]. - Energy and chemical revenues fell by approximately 50% to $30.8 million in Q3 2023 from $61.2 million in Q3 2022 due to lower sales realizations [131]. - Pulp segment revenues decreased by approximately 16% to $1,061.9 million in the nine months ended September 30, 2023, down from $1,260.9 million in the same period of 2022, reflecting weak market conditions [163]. - Energy and chemical revenues in the pulp segment fell by approximately 37% to $90.0 million in the nine months ended September 30, 2023, compared to $141.9 million in the same period of 2022 [163]. - The solid wood segment revenues increased by approximately 26% to $366.6 million in the nine months ended September 30, 2023, from $290.0 million in the same period of 2022, driven by the inclusion of Torgau and ramping up mass timber operations [176]. Costs and Expenses - Costs and expenses in the nine months ended September 30, 2023 increased by approximately 22% to $1,655.7 million from $1,352.8 million in the same period of 2022, primarily due to the inclusion of Torgau [154]. - In Q3 2023, transportation costs increased by approximately 46% to $13.9 million from $9.5 million in Q3 2022, primarily due to higher sales volume [151]. - Transportation costs for the solid wood segment increased by approximately 44% to $48.0 million in the nine months ended September 30, 2023, from $33.4 million in the same period of 2022, primarily due to higher sales volumes [184]. Acquisitions and Investments - The company acquired Structurlam Mass Timber Corporation for $82.1 million on June 15, 2023, enhancing its mass timber production capabilities [109]. - Investing activities used cash of $179.7 million in the nine months ended September 30, 2023, primarily for capital expenditures of $110.3 million and acquisition costs of $82.1 million for mass timber assets [187]. - Capital expenditures for the nine months ended September 30, 2023, were $110.3 million, down from $128.9 million in the same period of 2022, a decrease of approximately 14.4% [192]. - The company expects capital expenditures for fiscal 2023 to be between $130 million and $150 million, indicating a reduction from previous plans [194]. Market Conditions and Outlook - The company expects modest improvements in pulp sales realizations in Q4 2023 due to increasing demand in China and reduced supply from curtailments [112]. - Demand for pulp and lumber is closely tied to global macro-economic conditions and can be volatile [223]. - The company faces risks from cyclical fluctuations in raw material prices, particularly fiber, which could adversely affect profitability [216]. Financial Position - Total assets decreased to $2,655.0 million as of September 30, 2023, down from $2,725.0 million as of December 31, 2022, a decline of approximately 2.6% [190]. - Long-term liabilities increased to $1,721.7 million as of September 30, 2023, up from $1,508.2 million as of December 31, 2022, reflecting a rise of about 14.1% [190]. - Cash and cash equivalents stood at $343.7 million as of September 30, 2023, with approximately $304.7 million available under revolving credit facilities, resulting in total liquidity of about $648.4 million [193]. - The company believes that cash flow from operations and available cash will be adequate to finance capital requirements and pay quarterly dividends over the next 12 months [196]. Credit Ratings and Financial Risks - S&P downgraded the company's senior notes rating to B from B+ in September 2023, with a negative outlook, while Moody's downgraded its rating to B2 from Ba3 [207]. - A non-cash decrease of $7.6 million in the carrying value of net assets denominated in euros was recorded due to the strengthening of the dollar as of September 30, 2023 [205]. - A decrease in the dollar's value relative to the euro and Canadian dollar adversely affects operating margins and cash flow [229]. - Such declines could materially impact the company's business, financial condition, and results of operations [229].

Mercer International Inc. (NASDAQ:MERC) Q2 2023 Earnings Call Transcript August 4, 2023 10:00 AM ET Company Participants Richard Short - Chief Financial Officer Juan Carlos Bueno - President and CEO Conference Call Participants Sean Stewart - TD Securities Matthew McKellar - RBC Cole Hathorn - Jefferies CJ Baldoni - Principal Operator Good morning and welcome to Mercer International's Second Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, Mercer's President and Chief Executive ...

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 June 30, 2023 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 other j ...

Mercer International Inc. (NASDAQ:MERC) Q1 2023 Earnings Conference Call May 5, 2023 10:00 AM ET Company Participants David Ure - SVP, Finance and CFO Juan Carlos Bueno - President and CEO Conference Call Participants Sean Stewart - TD Securities Paul Quinn - RBC Capital Markets Hamir Patel - CIBC Capital Markets Richard Stevens - Momenta Operator Good morning and welcome to Mercer International’s First Quarter 2023 Earnings Conference Call. On the call today is Juan Carlos Bueno, President and Chief Execut ...

Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from _______ to _______ Commission File No.: 000-51826 MERCER INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington 47-0956945 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by chec ...

Mercer International Inc. (NASDAQ:MERC) Q4 2022 Earnings Conference Call February 17, 2023 10:00 AM ET Company Representatives Juan Carlos Bueno - President, Chief Executive Officer David Ure - Senior Vice President, Finance, Chief Financial Officer and Secretary Conference Call Participants Kasia Kopytek - TD Securities Paul Quinn - RBC Capital Markets Andrew Kuske - Credit Suisse Operator Good morning and welcome to Mercer International???s, Fourth Quarter 2022 Earnings Conference Call. On the call today ...

Production Capacity and Operations - The company has a consolidated annual production capacity of approximately 2.3 million ADMTs of kraft pulp, with 88% being NBSK pulp[24]. - The solid wood segment has an aggregate capacity of approximately 960 MMfbm of lumber and 140,000 m³ of cross-laminated timber (CLT)[31]. - The company operates four modern pulp mills, which provide advantages in manufacturing costs and efficiency compared to older competitors' mills[25]. - The Stendal mill has an annual production capacity of approximately 740,000 ADMTs and generates 148 MW of electricity[27]. - The Peace River mill has a production capacity of approximately 475,000 ADMTs and generates 70 MW of electricity[27]. - The Friesau mill has an annual production capacity of approximately 550 MMfbm of lumber and 13 MW of electrical generation[5]. - The Torgau facility has an annual production capacity of approximately 410 MMfbm of lumber, 17 million pallets, and can produce up to 230,000 metric tonnes of biofuels[5]. - The Mercer Mass Timber facility represents approximately 20% of North American CLT capacity with an annual production capacity of 140,000 m³[33]. Financial Performance - In 2022, pulp production was 1,878.6 thousand ADMTs, while pulp sales reached 1,917.7 thousand ADMTs, generating revenues of $1,686.37 million[26]. - The company produced and sold 751,720 MWh of surplus electricity in 2022, resulting in revenues of $167.52 million from electricity sales[29]. - In 2022, the company generated $12.23 million in revenue from chemicals produced as a by-product of pulp production[29]. - Lumber production for 2022 was 442.2 MMfbm, a slight decrease from 447.9 MMfbm in 2021[35]. - Lumber revenues for 2022 were $288,002,000, down from $293,166,000 in 2021[35]. - Pulp segment revenues for 2022 totaled $1,866.1 million, a 26% increase from $1,483.1 million in 2021[119]. - Solid wood segment revenues for 2022 reached $408.5 million, up from $313.5 million in 2021[121]. Capital Expenditures and Investments - Capital expenditures for 2022 amounted to $177.8 million, compared to $158.7 million in 2021[132]. - In 2023, total capital expenditures are expected to be between $175.0 million and $200.0 million[138]. - The Torgau facility was acquired for approximately $263.2 million on September 30, 2022[43]. - The company is investing in a pilot lignin plant at the Rosenthal mill to explore commercial opportunities for lignin[143]. - Total capital expenditures on environmental projects were approximately $4.8 million in 2022, $8.4 million in 2021, and are expected to be approximately $13.8 million in 2023[145]. Market and Pricing - The average European list price for NBSK pulp fluctuated between approximately $790 per ADMT in 2016 and $1,500 per ADMT in 2022[61]. - NBSK pulp list prices in Europe increased from $1,260/ADMT in 2021 to $1,425/ADMT in 2022, while North America saw an increase from $1,450/ADMT to $1,720/ADMT[63]. - In China, the net price for NBSK pulp rose from $760/ADMT in 2021 to $885/ADMT in 2022[63]. - In 2022, energy sales from German mills amounted to approximately $168.2 million, generating 694,124 MWh of electricity[87]. - Canadian mills sold approximately 167,178 MWh of renewable electricity in 2022, resulting in proceeds of approximately $25.0 million[89]. Fiber and Production Costs - Fiber costs represented about 50% of pulp cash production costs in 2022, while sawlogs accounted for approximately 75% of lumber cash production costs[91]. - In 2022, the German pulp mills consumed approximately 4.7 million m³ of fiber, with 58% being pulp logs and 42% sawmill wood chips[100]. - The Stendal mill's fiber consumption consisted of approximately 67% spruce, 31% pine, and 2% other species in 2022[101]. - The Friesau mill and Torgau facility utilize sawlogs and waste wood, achieving fiber utilization and logistics synergies[71]. - Wood fiber accounted for approximately 75% of cash costs for lumber production in 2022[104]. - In 2022, Canadian mills consumed about 4.3 million m³ of fiber, with 47% from sawmill wood chips and 53% from pulp logs[108]. Sustainability and Environmental Initiatives - The company is actively engaged in wood certification processes to ensure sustainable sourcing of fiber, which may impact operating costs if market demands change[97]. - The company has a commitment to sustainability, enhancing environmental tracking and reporting systems across all facilities[192]. - The company has validated its greenhouse gas reduction targets with the Science Based Target Initiative, aiming for a trajectory well below a 2 degrees Celsius increase[192]. - The New German Facility includes sustainability-linked terms, allowing for interest rate adjustments of up to 0.05% per annum based on sustainability targets[202]. - The focus on climate change has generated a substantial increase in demand for carbon neutral or green energy[159]. - The company is exploring initiatives to enhance the generation and sales of surplus green energy and chemical by-products[161]. Workforce and Corporate Strategy - The company employs approximately 3,320 people, with 2,315 in German operations, 910 in Canadian operations, and 60 in U.S. operations[172]. - The pulp segment employs approximately 1,806 people, while the solid wood segment employs approximately 1,429 people[172]. - The corporate strategy includes sustainable growth through acquisitions and targeted capital expenditures[44]. - The company recognizes the importance of maintaining competitive compensation and benefits packages to attract and retain talent[174]. - The company aims for women to comprise 30% of new hires by 2030, currently holding 30% of board positions and 25% of senior management roles[183]. - The company has partnered with a global management consulting firm to advance gender parity and diversity in its workforce[186]. Regulatory and Compliance - The Canadian federal government began phasing in a federal carbon tax pricing system as of January 1, 2023, affecting several provinces and territories[153]. - The company believes it has obtained all required environmental permits and is in material compliance with applicable environmental laws and regulations[149]. - As of December 31, 2022, all subsidiaries are restricted, affecting the company's credit rating and borrowing costs[196][435]. - The company is rated B+ by S&P and Ba3 by Moody's, with stable outlooks confirmed in December 2022[436]. Health and Safety - The company has implemented a "Road to Zero" health and safety program aimed at achieving zero workplace incidents[177].

Mercer International Inc. (NASDAQ:MERC) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET Company Participants Juan Carlos Beuno - President and Chief Executive Officer David Ure - Senior Vice President, Finance, Chief Financial Officer and Secretary Conference Call Participants Sean Stewart - TD securities Hamir Patel - CIBC Capital Markets Andrew Kuske - Credit Suisse Matthew McKellar - RBS Capital Markets Dennis Collins - Stifel Operator Hello and welcome to Mercer International???s Third Qua ...

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, 2022 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 ...

Mercer International, Inc. (NASDAQ:MERC) Q2 2022 Results Conference Call July 29, 2022 11:00 AM ET Company Participants Juan Carlos - President & CEO David Ure - EVP, CFO & Secretary Conference Call Participants Roger Spitz - Bank of America Andrew Kuske - Credit Suisse Jeff Gates - Gates Capital Management Paul Quinn - RBC Capital Markets Operator Good morning, and welcome to Mercer International's Second Quarter 2022 Earnings Conference Call. On the call today is Juan Carlos, President and Chief Executive ...