Financial Performance - Total revenues for the first quarter of 2022 increased by approximately 44% to a record $592.7 million from $412.7 million in the same quarter of 2021, primarily due to higher sales realizations, pulp sales volumes, and energy sales [97]. - Net income for the first quarter of 2022 was $88.9 million, or $1.35 per basic share, compared to net income of $5.9 million, or $0.09 per share, in the same quarter of 2021 [105]. - Operating EBITDA increased by approximately 88% to $154.5 million from $82.0 million in the same quarter of 2021, driven by higher sales realizations and pulp sales volumes [106]. - Cash provided by operating activities was $68.8 million in Q1 2022 compared to $30.3 million in Q1 2021 [128]. - Capital expenditures in Q1 2022 were $33.3 million, primarily related to upgrades at Canadian mills [129]. - As of March 31, 2022, cash and cash equivalents were $410.7 million, with total assets of $2,456.9 million [132]. Revenue Breakdown - Pulp segment revenues reached $485.9 million, up from $339.8 million, while wood products segment revenues increased to $101.0 million from $71.0 million [93]. - Energy and chemical revenues increased by 76% to $46.2 million from $26.3 million, primarily due to higher energy prices in Germany, which were more than double those in the same quarter of 2021 [98]. - Lumber revenues increased by approximately 37% to a record $92.4 million in Q1 2022 from $67.3 million in Q1 2021 [120]. - Average NBSK pulp sales realizations increased by approximately 22% to $812 per ADMT in Q1 2022 from approximately $668 per ADMT in Q1 2021 [114]. - Average lumber sales realizations increased by approximately 35% to $840 per Mfbm in Q1 2022 from approximately $622 per Mfbm in Q1 2021 [123]. Production and Sales Volumes - Pulp production increased by approximately 3% to 492,288 ADMTs, while pulp sales volumes rose to 505.1 ADMTs from 418.6 ADMTs in the same quarter of 2021 [110]. - Total pulp sales volumes increased by approximately 14% to 555,035 ADMTs in Q1 2022 from 487,678 ADMTs in Q1 2021 [112]. - The company anticipates continued upward pricing pressure on pulp prices due to current supply-demand dynamics, while lumber prices are expected to remain at historically strong levels [88]. Costs and Expenses - Costs and expenses increased by approximately 30% to $470.4 million, primarily due to higher per unit fiber costs and energy, freight, and chemical costs [99]. - Costs and expenses in Q1 2022 increased by approximately 27% to $399.7 million from $314.6 million in Q1 2021 [116]. - The company expects per unit fiber costs to increase in Q2 2022 due to continued strong demand [117]. Market Dynamics - The pulp and lumber markets are highly cyclical, with prices influenced by global economic conditions, industry capacity, and foreign exchange rates [159]. - The company is exposed to fluctuations in prices and demand for lumber, which could adversely impact its operations [154]. - Oversupply in the pulp and lumber markets can prolong weak pricing environments, affecting the company's operating results [160]. - The company's profitability is significantly affected by raw material costs, which are subject to cyclical fluctuations [165]. - The company operates in a highly cyclical industry, with revenues affected by global economic conditions, industry capacity, and foreign exchange rates, leading to potential price volatility [159]. Risks and Compliance - The ongoing COVID-19 pandemic poses risks that could materially affect the company's business and financial position [154]. - The company faces intense competition in the forest products industry, which could adversely affect its ability to compete [154]. - The company relies on third parties for transportation services, which could disrupt operations if issues arise [156]. - The company may incur substantial costs due to compliance with environmental regulations, which could impact financial results [156]. - The company faces risks related to compliance with trade and export laws, which could adversely impact operations [157]. - Changes in credit ratings could adversely affect the company's cost of financing and market price of its securities [156]. Currency and Pricing Fluctuations - Currency fluctuations can adversely affect the company's operating margins, as costs in Germany and Canada are incurred in euros and Canadian dollars, respectively, while sales are primarily in dollars [166]. - The dollar strengthened by approximately 2% against the euro and weakened by approximately 1% against the Canadian dollar since December 31, 2021 [146]. - The company's sales prices are net of customer discounts and rebates, which can affect overall revenue realization [163]. Sustainability and Standards - The company voluntarily complies with internationally recognized sustainable management standards, which are increasingly important to customers [162]. - The company recorded a net non-cash decrease of $10.5 million in the carrying value of net assets due to foreign currency fluctuations [145].

Financial Data and Key Metrics Changes - The company achieved record EBITDA in Q4 2021 of almost $165 million, compared to approximately $148 million in Q3 2021 [8] - For the full year 2021, record EBITDA totaled almost $479 million, exceeding the previous record by over $100 million [9] - Net income for Q4 was $74.5 million, or $1.13 per basic share, compared to $69 million, or $1.05 per share in Q3 [14] - Cash generated in Q4 was approximately $7 million, a significant improvement from cash used of $46 million in Q3 [15] Business Segment Data and Key Metrics Changes - The pulp segment contributed record quarterly EBITDA of roughly $143 million, while the wood products segment contributed almost $24 million [8] - Q4 sales totaled almost 516,000 tons, an increase of about 68,000 tons from Q3 [11] - Lumber realizations were mixed, with U.S. benchmark prices averaging $711 per 1,000 board feet in Q4, up $217 from Q3, while European sales realizations decreased by approximately $44 per 1,000 board feet [12] Market Data and Key Metrics Changes - Average NBSK net price in China for Q4 was $723 per ton, down $109 from Q3, while European list prices averaged $1,302 per ton, down from $1,345 per ton in Q3 [9][10] - Pulp demand remained strong, but average pulp prices fell modestly in Q4 due to negative market sentiment [28] - The company experienced higher fiber prices in Canada and Germany, along with increased freight costs due to extreme weather and supply chain issues [6][33] Company Strategy and Development Direction - The company is focused on maintaining world-class assets and diversifying its product offerings, including mass timber and engineered wood products [25][43] - Plans for 2022 include an ambitious capital expenditure program of approximately $175 million, targeting high-return projects [44] - The company aims to optimize its mix of lumber products and customers to achieve sustainable realizations [33] Management's Comments on Operating Environment and Future Outlook - Management noted that high energy prices in Europe are a significant factor, with expectations for continued upward pricing pressure in the pulp market due to supply chain restrictions [34][36] - The company anticipates strong lumber demand driven by positive homebuilder sentiment, despite potential mortgage rate increases [31] - Management expressed confidence in the company's ability to generate strong cash flow and shareholder value through its growth strategy [50] Other Important Information - The company settled a business interruption insurance claim related to the Peace River mill, which positively impacted Q4 EBITDA by about $32 million [7] - A 15% quarterly dividend increase was approved, raising it to $0.075 per share for shareholders of record on March 30, 2022 [20] - The company has entered into a new C$160 million revolving credit facility for its Canadian operations, enhancing financial flexibility [19] Q&A Session Summary Question: Can you provide context on chemical costs for pulp mills? - Management indicated that there have not been material changes in chemical costs in 2021, but inflationary pressure is expected in 2022 [57] Question: Can you quantify the business interruption insurance claim related to the Rosenthal generator? - Management clarified that the generator's downtime negatively impacted EBITDA by approximately $41 million for the year, and the insurance claim is complex and still under discussion [58][59] Question: Are logistics improving? - Management noted improvements at the Celgar mill, but challenges remain at the Peace River mill due to logistics issues, which are expected to resolve in the coming months [61] Question: What is the status of energy prices in Europe? - Management reported a significant increase in energy prices, with gray market rates rising dramatically, which will positively impact revenues [63] Question: What are the acquisition opportunities in pulp or lumber? - Management stated that the focus is on lumber and mass timber, with no current plans to pursue pulp mill acquisitions [64][65] Question: What is the current status of the Mercer Mass Timber operation? - Management indicated that the operation is ramping up and is not a burden on the company, with expectations for a good internal rate of return [68][69] Question: What are the plans for investor relations activities? - Management plans to enhance ESG communication and engage more with retail and family office investors [77][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K | For the fiscal year ended December 31, 2021 | | | | --- | --- | --- | | 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 jurisdiction | | (IRS Employer ...

Sustainable. By Design. 1 January, 2022 Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this presentation contains statements that are forwardlooking, such as statements relating to results of operations and financial conditions, market expectations and business development activities, as well as capital spending and financing sources. Such forward-looking information involves important r ...

Financial Performance - The company achieved record EBITDA of $148 million in Q3, up from approximately $84 million in Q2, primarily due to solid production and sales, strong pricing, and reduced maintenance downtime [4][3] - Net income for the quarter was $69 million, or $1.05 per share, compared to $21 million, or $0.32 per share in Q2 [8] - Cash usage in Q3 totaled approximately $46 million, mainly due to the acquisition of Mercer Mass Timber and capital expenditures [8][9] Business Segment Performance - The pulp segment contributed record EBITDA of almost $130 million, while the wood products segment contributed $22 million in EBITDA [4] - Sales volumes increased to almost 448,000 tons in Q3, up about 87,000 tons from Q2, despite 44 days of combined downtime for maintenance [6] - The wood products segment sold about 98 million board feet of lumber, slightly down from Q2 due to planned downtime [7] Market Dynamics - In China, the average NBSK net price was $832 per ton, down $130 from Q2, while European best prices averaged $1,345 per ton, up from $1,288 [5] - The U.S. lumber market experienced a significant correction, with benchmark prices averaging $495 per 1,000 board feet, down $848 from the previous quarter [6] - The European lumber market remained strong, with steady price increases, while the U.S. market showed signs of recovery due to limited supply [17][18] Strategic Direction and Industry Competition - The company is focusing on growth in market pulp, building products, green energy, and chemical extractors, leveraging its expertise in timber supply and logistics [21] - The recent acquisition of Mercer Mass Timber is seen as a key element of the company's strategic growth plan, entering the mass timber space with significant market potential [24] - The company is also advancing its sustainability initiatives, with projects aimed at reducing costs and greenhouse gas emissions [22] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about steady demand in Europe and potential recovery in China, despite current logistical challenges [16] - The company anticipates continued pricing pressure in China due to energy restrictions and logistical issues, but expects a rebound once conditions normalize [15] - The outlook for the wood products segment remains positive, with expectations of stable housing demand in the U.S. despite modestly higher mortgage rates [18] Other Important Information - The company reported a liquidity position of approximately $647 million, which includes $339 million in cash and $308 million in undrawn revolvers [9] - The board approved a quarterly dividend of $0.605 per share for shareholders of record on December 22, 2021 [10] Q&A Session Summary Question: What level of sales is targeted for 2022 from the CLT plant? - Management indicated that it is too early to predict sales levels and profitability margins for the CLT plant, as it is an emerging business [29] Question: What is the expected pricing trend for lumber in Q4? - Management noted a slight downward trend in European lumber prices, but not as significant as in the U.S. market [30] Question: What are the timing and details of major maintenance outages in 2022? - Management stated that all four pulp mills will have typical two to three-week shutdowns next year, with specific mills likely scheduled for Q2 and Q3 [31][32] Question: What is the current status of the Chinese pulp market? - Management described significant production curtailments in coastal regions of China due to power usage caps, impacting overall demand [43] Question: What is the company's strategy regarding share buybacks? - Management emphasized a focus on growth and maintaining liquidity rather than share buybacks, despite recognizing the stock's undervaluation [50]

Financial Performance - Total revenues for Q3 2021 increased by approximately 41% to $469.7 million from $333.2 million in Q3 2020, primarily due to higher pulp and lumber sales realizations [100]. - Operating income for Q3 2021 reached a record $113.8 million, compared to $13.7 million in Q3 2020, driven by higher sales realizations [103]. - Net income for Q3 2021 was $69.1 million, or $1.05 per basic share, compared to $7.5 million, or $0.11 per share, in Q3 2020 [106]. - Operating EBITDA for Q3 2021 increased to $148.1 million from $45.6 million in Q3 2020, reflecting higher sales realizations [106]. - Total revenues for the nine months ended September 30, 2021 increased by approximately 25% to $1,284.3 million from $1,024.9 million in the same period of 2020 [127]. - Net income for the nine months ended September 30, 2021 was $96.5 million, or $1.46 per share, compared to a net loss of $4.3 million, or $0.06 per share, in the same period of 2020 [135]. Revenue Breakdown - Pulp segment revenues for Q3 2021 were $396.7 million, up from $274.9 million in Q3 2020, while wood products segment revenues increased to $70.7 million from $57.1 million [96]. - Pulp revenues increased by approximately 48% to $374.3 million in Q3 2021 from $253.1 million in Q3 2020 due to higher sales realizations [108]. - Lumber revenues increased by approximately 26% to $67.6 million in Q3 2021 from $53.6 million in Q3 2020, attributed to higher sales realizations [120]. - Total pulp revenues for the nine months ended September 30, 2021 increased by approximately 22% to $989.1 million from $808.9 million in the same period of 2020 [137]. - Lumber revenues increased by approximately 67% to $221.2 million in the nine months ended September 30, 2021, from $132.2 million in the same period of 2020, primarily due to a higher realized sales price [148]. Production and Costs - Pulp production for Q3 2021 was 443,000 ADMTs, an increase from 400,200 ADMTs in Q3 2020 [98]. - Total pulp production increased by approximately 4% to 500,866 ADMTs in Q3 2021 from 479,993 ADMTs in Q3 2020, despite 44 days of maintenance downtime [111]. - Costs and expenses in Q3 2021 increased by approximately 11% to $356.0 million from $319.4 million in Q3 2020, mainly due to higher energy and maintenance costs [101]. - Production costs are significantly affected by the availability and cost of raw materials, with higher fiber prices potentially impacting profit margins if price increases cannot be passed to customers [198]. Market Conditions - The company expects steady NBSK pulp demand in Europe but a weakening market in China for Q4 2021 [93]. - The business is highly cyclical, with revenues affected by supply and demand imbalances in the pulp and lumber markets, which are sensitive to global economic conditions [191]. - Demand for pulp and lumber is closely tied to global macro-economic conditions and overall business activity, making it sensitive to economic cycles [194]. Financial Position and Liquidity - Cash provided by operating activities was $151.6 million in the nine months ended September 30, 2021, compared to $22.8 million in the same period of 2020 [157]. - As of September 30, 2021, total assets increased to $2.23 billion from $2.13 billion as of December 31, 2020 [161]. - The company had cash and cash equivalents of $338.7 million and approximately $308.2 million available under revolving credit facilities, providing aggregate liquidity of about $646.9 million as of September 30, 2021 [166]. Risks and Challenges - The company faces intense competition in its markets, which could impact pricing and profitability [187]. - Fluctuations in prices and demand for lumber could adversely affect the business, particularly in the wood products segment [188]. - The company is exposed to risks related to climate change and social and government responses, which could impact operations [187]. - The company’s level of indebtedness could negatively impact its financial condition, results of operations, and liquidity [188]. - Future acquisitions may introduce additional risks and uncertainties to the company’s business [188]. Capital Expenditures and Investments - The company expects capital expenditures for 2021 to be approximately $150 million, focusing on projects that deliver high returns and support ESG objectives [167]. - Capital expenditures in the nine months ended September 30, 2021, were $125.7 million, primarily for the recovery boiler rebuild and capacity expansion projects [158]. Currency and Economic Factors - The dollar strengthened by approximately 6% against the euro and was flat against the Canadian dollar since December 31, 2020 [178]. - The company’s operations in Germany and Canada incur costs in euros and Canadian dollars, respectively, while most sales are quoted in dollars, leading to potential adverse effects on operating margins from currency fluctuations [199].

Mercer International Inc. (NASDAQ:MERC) Q2 2021 Earnings Conference Call July 30, 2021 10:00 AM ET Company Participants David Gandossi - President and Chief Executive Officer David Ure - Senior Vice President, Finance, Chief Financial Officer and Secretary Conference Call Participants Hamir Patel - CIBC Capital Markets Sean Steuart - TD Securities Marcus Campeau - RBC Capital Markets Roger Spitz - Bank of America Andrew Shapiro - Lawndale Capital DeForest Hinman - Walthausen & Company Operator Good morning ...

Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ 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 juri ...

Financial Data and Key Metrics Changes - The first quarter EBITDA improved significantly to approximately $82 million compared to about $49.5 million in Q4, driven by higher pulp and lumber pricing [7][6] - Net income for the quarter was nearly $6 million or $0.09 per share, a recovery from a net loss of $13 million or $0.20 per share in Q4 [13] - Cash generated in the quarter totaled almost $34 million, up from $16 million in Q4, reflecting a strong liquidity position of about $672 million at the end of the quarter [14][15] Business Segment Data and Key Metrics Changes - The pulp segment contributed EBITDA of $52.3 million, while the wood products segment achieved record quarterly EBITDA of $31.7 million [7] - Average quarterly softwood and hardwood pulp prices increased significantly, with the Q1 average NBSK net price in China at $883 per ton, up $246 from Q4 [8] - Lumber sales realization increased to $622 per thousand board feet, up $155 compared to Q4, with sales volumes rising to about 108 million board feet [11] Market Data and Key Metrics Changes - Pulp demand remained strong, although sales volume decreased to about 488,000 tonnes, down 75,000 tonnes from Q4 due to maintenance shutdowns [9] - US lumber prices rose steadily, with benchmark prices exceeding $1300 per thousand board feet, driven by strong housing market demand [10][28] - The European lumber market experienced modest upward pricing pressure, while the US market remains at historically high levels [28] Company Strategy and Development Direction - The company is focused on optimizing its capital expenditures and has ramped up its strategic initiatives to grow in areas of core competencies [38] - Significant projects include the Stendal pulp mill expansion and modernization of wood rooms at Peace River and Celgar, aimed at increasing capacity and reducing costs [39][40] - The company plans to balance growth with deleveraging and is cautious about capital allocation in light of market volatility [76][78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about steady economic growth and strong market fundamentals supporting pulp prices, despite ongoing challenges from the COVID-19 pandemic [25][26] - The company anticipates that supply constraints in the pulp market may persist for several quarters due to unplanned downtime and transportation limitations [26] - Management emphasized the importance of safety protocols during maintenance activities to mitigate risks associated with the pandemic [35] Other Important Information - The company announced a quarterly dividend of $0.065 per share for shareholders of record on June 30, 2021 [19] - The refinancing of senior notes is expected to lower annual interest costs by about $12 million [18] Q&A Session Summary Question: How do lumber prices in European markets compare to the US? - Management noted that European margins are improving but still lag behind US margins, with significant price movements observed [47][48] Question: What is the long-term fiber availability in Germany? - Management indicated that approximately 50% of forests are state or federally owned, and the beetle infestation is regionally dependent, but they remain confident in timber supply for their operations [49] Question: What impact do potential changes in British Columbia's tenure ownership have on the company? - Management expressed confidence that the situation would remain stable, with a good supply of raw materials available for their operations [50][51] Question: How does the company prioritize cash flow uses? - Management stated a balanced capital allocation strategy focusing on growth projects while also considering deleveraging and shareholder returns [75][78] Question: Can you provide insights on the grants related to GHG reductions? - Management detailed several projects with significant cost savings and potential EBITDA impacts, supported by government grants for carbon reduction initiatives [81][84]

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 March 31, 2021 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 ...