MISSISSAUGA, Ontario, March 07, 2019 (GLOBE NEWSWIRE) -- KP Tissue Inc. (KPT) (TSX: KPT) reports the Q4 2018 and full year 2018 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 15.7% interest in KPLP.

KPLP Q4 2018 Business and Financial Highlights

  • Revenue increased by 5.7% to $359.5 million in Q4 2018 compared to Q4 2017
  • Adjusted EBITDA was $20.3 million in Q4 2018 compared to $33.7 million in Q4 2017
  • Pulp and freight costs continued to escalate in the quarter
  • Completed TAD2 financing and the project is progressing on time and on budget
  • Signed a multi-year partnership agreement with the NHL
  • Declared a quarterly dividend of $0.18 per share to be paid on April 15, 2019         

KPLP Full Year 2018 Business and Financial Highlights

  • Revenue increased by 7.1% to $1,370.4 million in 2018 compared to $1,280.0 million in 2017
  • Adjusted EBITDA was $102.3 million in 2018, down from $144.2 million in 2017

“We are pleased by our strong revenues for the year and for reaching another record level, however high pulp prices and freight costs, prevalent throughout 2018, led to disappointing results for the year. KP Tissue’s countermeasures such as our value creation program and capital projects partially offset these higher input costs. The price increase announced last year in the Canadian consumer business will provide some relief starting in the first quarter of 2019. With the support of a third party consultant, we are initiating an operational excellence program to better leverage our assets, which is projected to result in cost savings of between $15 and $20 million on a run-rate basis by the end of 2020,” said Dino Bianco, CEO of KP Tissue and KPLP.

“Our TAD2 project remains on budget and on track with construction starting this spring, setting the stage for a new growth phase. We are also very proud to have recently signed a multi-year agreement with the NHL allowing us to create innovative and fully integrated programs and promotions to further extend our brand leadership in both Consumer and Away-From-Home”, concluded Mr. Bianco.

Outlook
KPLP continues to have strong long-term business fundamentals and will benefit from the Consumer Canada price increase implemented in Q4 2018.  While the price increase will gain traction in the first quarter, Adjusted EBITDA is anticipated to be lower than the comparable quarter in 2018 due to continued pressure from high input costs.

TAD2 Project
On August 16, 2018, KPLP announced its plan for a capital investment of $575 million in the Brompton area of Sherbrooke, Quebec, to build a new, state-of-the-art tissue plant featuring Canada’s largest and most modern TAD paper machine along with related converting equipment and infrastructure (the TAD2 Project). The TAD2 Project is projected to produce at maturity approximately 70,000 metric tonnes per annum of bathroom tissue and paper towels which will enable KPLP to increase its offering of ultra-premium and innovative tissue projects under the Cashmere, Sponge Towels and Purex brands and also enable expansion in the U.S. private label business. Construction of the new site is expected to begin in the spring of 2019 and commence production in early 2021.

Financing of the TAD2 Project
On November 19, 2018, KPLP announced that it had closed financing transactions to fund the TAD2 Project. The financings include the TAD2 Project Facility, the KTG Facility, the Convertible Debenture and the Nordea 2 Facility, as well as a $50 million factoring facility made available to KPLP under a receivables purchase agreement with The Bank of Nova Scotia. KPLP will use funds from the Nordea 2 Facility and the factoring facility as well as cash on hand to fund a $125 million equity investment in Kruger Products Sherbrooke Inc. (KPSI), with half of such investment having occurred upon the closing of the financings and the remainder to be funded over the following two years. Funds from the KTG Facility were used to refinance existing indebtedness of TAD Canco Inc. incurred for the TAD1 project under a credit agreement with Caisse de dépôt et placement du Québec. The Project Facility and the KTG Facility are both non-recourse to KPLP. In connection with the financings, the Senior Credit Facility and the Nordea Credit Facility were amended to, amongst other things, amend certain covenants to increase the amount of permitted debt for borrowed money.

KPLP Q4 2018 Financial Results
Revenue was $359.5 million in Q4 2018 compared to $340.0 million in Q4 2017, an increase of $19.5 million or 5.7%. The increase in revenue was primarily due to the Consumer Canada selling price increase implemented in Q4 2018, the favourable impact of foreign exchange fluctuations on U.S. sales, and increased sales volume in Mexico, partially offset by 6 fewer days of sales in Q4 2018 compared to Q4 2017.

Cost of sales was $328.5 million in Q4 2018 compared to $296.0 million in Q4 2017, an increase of $32.5 million or 11.0%. Manufacturing costs increased primarily due to higher pulp costs, increased sales volume, the cost of outsourced manufacturing and the unfavourable impact of foreign exchange fluctuations on USD denominated costs. The benefits from cost reduction initiatives and capital projects partially offset other manufacturing cost inflation. Freight costs increased primarily due to higher carrier rates and increased sales volume. As a percentage of revenue, cost of sales were 91.4% in Q4 2018 compared to 87.1% in Q4 2017.

Selling, general and administrative (SG&A) expenses were $24.2 million in Q4 2018 compared to $23.7 million in Q4 2017, an increase of $0.5 million or 2.1%. As a percentage of revenue, SG&A expenses were 6.7% in Q4 2018 compared to 7.0% in Q4 2017.

Adjusted EBITDA was $20.3 million in Q4 2018 compared to $33.7 million in Q4 2017, a decrease of $13.4 million. The decrease was primarily due to significantly higher fibre and freight costs, 6 fewer days of sales in Q4 2018 compared to Q4 2017, the cost of outsourced manufacturing, unfavourable sales mix and the net unfavourable impact of foreign exchange fluctuations, partially offset by the Q4 2018 Consumer Canada selling price increase.

Net income was $38.0 million in Q4 2018 compared to a net loss of $18.0 million in Q4 2017, an increase of $56.0 million. The increase was primarily due to an increase in the change in amortized cost of partnership units liability of $61.5 million and a change in income taxes of $9.8 million. These items were partially offset by lower Adjusted EBITDA of $13.4 million and an increase in interest expense of $1.8 million.

Total liquidity, representing cash and cash equivalents and availability under the credit line within covenant limitations, was $178.7 million as of December 31, 2018, including $129.1 million of cash and cash equivalents held by KPSI and committed to the TAD2 Project, compared to $63.6 million as of September 30, 2018.

KPLP 2018 Financial Results
Revenue was $1,370.4 million in Fiscal 2018 compared to $1,280.0 million in Fiscal 2017, an increase of $90.4 million or 7.1%. The increase in revenue was primarily due to the favourable impact of increased sales volume and the Consumer Canada selling price increases implemented in Q4 2017 and Q4 2018.

Adjusted EBITDA was $102.3 million in Fiscal 2018 compared to $144.2 million in Fiscal 2017, a decrease of $41.9 million or 29.1%. The decrease was primarily due to significantly higher fibre and freight costs, the cost of outsourced manufacturing and unfavourable sales mix, partially offset by increased sales volume and the Consumer Canada price increases.  

Net income was $45.4 million in Fiscal 2018 compared to $15.3 million in Fiscal 2017, an increase of $30.1 million. The increase was primarily due to an increase in the change in amortized cost of Partnership units liability of $64.9 million and a decrease in income taxes of $16.0 million. These items were partially offset by lower Adjusted EBITDA of $41.9 million as discussed above, an increase in interest expense of $6.0 million, and a change in foreign exchange gain (loss) of $2.9 million.

KPT Q4 2018 Financial Results
KPT earned net income of $2.7 million in Q4 2018. Included in the net income was $6.0 million representing KPT’s share of KPLP’s income. The income was reduced by depreciation expense of $1.5 million related to adjustments to carrying amounts on acquisition and an income tax expense of $1.9 million.

KPT 2018 Financial Results
KPT incurred a net loss of $0.3 million in 2018. Included in the net loss was $7.2 million representing KPT’s share of KPLP’s income. The income was reduced by depreciation expense of $5.8 million related to adjustments to carrying amounts on acquisition and income tax expense of $1.9 million

Dividends on Common Shares                                                     
The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on April 15, 2019 to shareholders of record at the close of business on April 1, 2019.

Additional Information
For additional information please refer to Management’s Discussion and Analysis (MD&A) of KPT and KPLP for the fourth quarter ended December 31, 2018 available on SEDAR at www.sedar.com or our website at www.kptissueinc.com.

Fourth Quarter Results Conference Call Information
KPT will hold its fourth quarter conference call on Thursday, March 7, 2019 at 8:30 a.m. Eastern Time.

Via telephone:  1-877-223-4471 or 647-788-4922

Via the internet at: www.kptissueinc.com

Presentation material referenced during the conference call will be available at www.kptissueinc.com.

A rebroadcast of the conference call will be available until midnight, March 14, 2019 by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 5517909.

The replay of the webcast will remain available on the website until midnight, March 14, 2019.

About KP Tissue Inc. (KPT)
KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 15.7% interest in KPLP. For more information visit www.kptissueinc.com.

About Kruger Products L.P. (KPLP)
KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees and operates eight FSC® COC-certified (FSC® C-104904) production facilities in North America.  For more information visit www.krugerproducts.ca.

Non-IFRS Measures
This press release uses certain non-IFRS financial measures which KPLP believes provide useful information to management of KPLP and the readers of the financial information in measuring the financial performance and financial condition of KPLP. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. An example of such a measure is Adjusted EBITDA. Beginning with Q4 2015 in accordance with Canadian Securities Administrators Staff Notice 52-306 (Revised), we have referenced Adjusted EBITDA as a non-IFRS financial measure. This term replaces the previously referenced non-IFRS financial measure EBITDA. Our definition of Adjusted EBITDA is unchanged from our former definition of EBITDA. Accordingly, this change in terminology has no impact on our reported financial results for prior periods. Adjusted EBITDA is not a measurement of operating performance computed in accordance with IFRS and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with IFRS. “Adjusted EBITDA” is calculated by KPLP as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) impairment (gain on sale) of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign exchange loss (gain), (viii) costs related to restructuring activities, (ix) changes in amortized cost of Partnership units liability, and (x) one-time costs due to pension revaluations related to past service. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the MD&A of KPT and KPLP for the fourth quarter ended December 31, 2018 available on SEDAR at www.sedar.com.

Forward-Looking Statements
Certain statements in this press release about KPT’s and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the projected capacity of the TAD2 Project, the anticipated benefits of the TAD2 Project and the expected dates for commencement of construction and production of the TAD2 Project. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking statements are based on certain key expectations and assumptions made by KPT or KPLP. Although KPT and KPLP believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that such expectations and assumptions will prove to be correct.

The outlook provided in respect of Adjusted EBITDA for Q1 2019 is forward-looking information and is subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management’s expectations, at the date of this press release, regarding KPLP’s future financial performance. Readers are cautioned that this information may not be appropriate for other purposes.  

Many factors could cause KPLP’s actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from KPT’s economic interest in KPLP), to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the “Risk Factors – Risks Related to KPLP’s Business” section of the KPT Annual Information Form dated March 8, 2019 available on SEDAR at www.sedar.com: Kruger Inc.’s influence over KPLP; KPLP’s reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD2 Project; operational risks; Gatineau Plant land lease; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP’s inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP’s brands; KPLP’s sales being less than anticipated; KPLP’s failure to implement its business and operating strategies; KPLP’s obligation to make regular capital expenditures; KPLP’s entering into unsuccessful acquisitions; KPLP’s dependence on key personnel; KPLP’s inability to retain its existing customers or obtain new customers; KPLP’s loss of key suppliers; KPLP’s failure to adequately protect its intellectual property rights; KPLP’s reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP’s cash flow; KPLP’s pension obligations are significant and can be materially higher than predicted if KPLP Management’s underlying assumptions are incorrect; labour disputes adversely affecting KPLP’s cost structure and KPLP’s ability to run its plants; exchange rate and U.S. competitors; KPLP’s inability to service all of its indebtedness; exposure to potential consumer product liability; covenant compliance; interest rate and refinancing risk; and risks relating to information technology; cyber-security; insurance; internal controls; and trade.

Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

INFORMATION:

Francois Paroyan
General Counsel and Corporate Secretary
KP Tissue Inc.
Tel.: 905.812.6936
francois.paroyan@krugerproducts.ca

INVESTORS:

Mike Baldesarra
Director of Investor Relations
KP Tissue Inc.
Tel.: 905.812.6962
IR@KPTissueinc.com

 

Kruger Products L.P.
Consolidated Statement of Financial Position
(thousands of Canadian dollars)
      
 December 31, 2018  December 31, 2017 
 $  $ 
Assets     
Current assets     
Cash and cash equivalents  169,884    8,837 
Trade and other receivables   127,633    113,194 
Receivables from related parties  172    85 
Current portion of advances to partners  -     1,928 
Inventories   202,916    192,394 
Income tax recoverable   362    522 
Prepaid expenses   6,904    8,007 
   507,871    324,967 
Non-current assets     
Advances to partners  1,704    4,489 
Property, plant and equipment   786,022    761,610 
Other long-term assets   10    6,331 
Goodwill  160,939    160,939 
Intangible assets   14,924    15,327 
Deferred income taxes   33,440    26,092 
Total assets  1,504,910    1,299,755 
Liabilities     
Current liabilities     
Bank indebtedness  -     9,051 
Trade and other payables   238,856    190,698 
Payables to related parties  5,620    2,596 
Income tax payable  80    498 
Distributions payable   10,723    10,382 
Current portion of provisions   292    333 
Current portion of long-term debt   13,939    190,947 
   269,510    404,505 
Non-current liabilities     
Long-term debt   563,955    225,368 
Provisions   5,398    5,973 
Pensions   104,939    119,558 
Post-retirement benefits   54,051    60,457 
Liabilities to non-unitholders  997,853    815,861 
Current portion of Partnership units liability   -     1,928 
Long-term portion of Partnership units liability   116,524    158,381 
Total Partnership units liability   116,524    160,309 
Total liabilities  1,114,377    976,170 
Equity     
Partnership units  376,274    356,240 
Deficit  (78,780)   (99,742)
Accumulated other comprehensive income  93,039    67,087 
Total equity  390,533    323,585 
Total equity and liabilities  1,504,910    1,299,755 


Kruger Products L.P.
Consolidated Statement of Comprehensive Income (Loss)
(thousands of Canadian dollars)
            
 3-month
period ended
December 31, 2018
  3-month
period ended
December 31, 2017
  12-month
period ended
December 31, 2018
  12-month
period ended
December 31, 2017
 
 $  $  $  $ 
Revenue   359,504    340,071    1,370,432    1,280,014 
Expenses           
Cost of sales   328,591    295,978    1,233,479    1,098,086 
Selling, general and administrative expenses   24,061    23,609    87,655    90,076 
(Gain) loss on sale of non-financial assets  3    5    (204)   (75)
Restructuring costs, net  -     54    1    (180)
Operating income  6,849    20,425    49,501    92,107 
Interest expense  12,183    10,467    48,059    42,021 
Other (income) expense   (41,334)   20,130    (40,790)   21,990 
Income (loss) before income taxes  36,000    (10,172)   42,232    28,096 
Income taxes   (1,989)   7,916    (3,174)   12,838 
Net income (loss) for the year  37,989    (18,088)   45,406    15,258 
Other comprehensive income (loss)           
Items that will not be reclassified to net income (loss):           
Remeasurements of pensions  (11,701)   (6,916)   17,021    (27,563)
Remeasurements of post-retirement benefits  42    (2,491)   7,532    (2,763)
Items that may be subsequently reclassified to net income (loss):           
Cumulative translation adjustment  16,005    5,357    25,952    (21,762)
Total other comprehensive income (loss) for the year  4,346    (4,050)   50,505    (52,088)
Comprehensive income (loss) for the year  42,335    (22,138)   95,911    (36,830)


Kruger Products L.P.
Consolidated Statement of Cash Flows
(thousands of Canadian dollars)
            
 3-month
period ended
December 31, 2018
  3-month
period ended
December 31, 2017
  12-month
period ended
December 31, 2018
  12-month
period ended
December 31, 2017
 
 $  $  $  $ 
Cash flows from (used in) operating activities           
Net income (loss) for the year  37,989    (18,088)   45,406    15,258 
Items not affecting cash           
Depreciation  12,920    12,875    50,943    51,289 
Amortization   348    317    1,426    1,092 
Loss (gain) on sale of property, plant and equipment  188    (1)   622    (3)
Change in amortized cost of Partnership units liability  (42,573)   18,835    (41,857)   23,013 
Foreign exchange loss (gain)  1,308    931    1,431    (1,387)
Change in fair value of derivatives  (69)   364    (364)   364 
Interest expense  12,183    10,467    48,059    42,021 
Pension and post-retirement benefits  3,104    2,572    12,954    10,111 
Provisions   (95)   67    (9)   278 
Income taxes  (1,989)   7,916    (3,174)   12,838 
Loss (gain) on sale of non-financial assets  3    5    (204)   (75)
Total items not affecting cash  (14,672)   54,348    69,827    139,541 
Net change in non-cash working capital   61,577    (9,235)   26,968    (35,194)
Contributions to pension and post-retirement benefit plans  (2,904)   (3,731)   (15,212)   (15,137)
Provisions paid  -     (633)   (247)   (1,648)
Income tax payments  (615)   (423)   (2,478)   (3,592)
Net cash from operating activities  81,375    22,238    124,264    99,228 
Cash flows from (used in) investing activities           
Purchases of property, plant and equipment (PP&E)  (10,565)   (17,849)   (33,647)   (68,127)
Purchases of PP&E related to TAD2 Project  (13,851)   -     (26,638)   -  
Capitalized interest paid  (184)   -     (184)   (497)
Government assistance received  18,044    774    19,226    4,646 
Purchases of software  -     (689)   (1,023)   (1,149)
Proceeds on sale of property, plant and equipment  (3)   (4)   320    1,180 
Net cash used in investing activities  (6,559)   (17,768)   (41,946)   (63,947)
Cash flows from (used in) financing activities           
Proceeds from long-term debt 289,754    7,957  484,755
    28,834 
Repayment of long-term debt  (199,384)   (20,789) (326,900
)   (26,039)
Payment of deferred financing fees  (14,386)   -     (18,489)   (12)
Interest paid on long-term debt  (8,691)   (14,171)   (34,351)   (33,101)
Distributions and advances paid, net  (1,132)   (5,555)   (19,506)   (31,547)
Net cash from (used in) financing activities  66,161    (32,558)   85,509    (61,865)
Effect of exchange rate changes on cash and cash  equivalents held in foreign currency  1,978    877    2,271    (1,134)
Increase (decrease) in cash and cash equivalents during the year  142,955    (27,211)   170,098    (27,718)
Cash and cash equivalents - Beginning of year  26,929    26,997    (214)   27,504 
Cash and cash equivalents - End of year  169,884    (214)   169,884    (214)


Kruger Products L.P.
Segment and Geographic Results
(thousands of Canadian dollars)
            
 3-month
period ended
December 31, 2018
  3-month
period ended
December 31, 2017
  12-month
period ended
December 31, 2018
  12-month
period ended
December 31, 2017
 
 $  $  $  $ 
Segment Information           
Segment Revenue           
Consumer  295,817    276,432    1,124,553    1,040,428 
AFH  58,551    62,231    231,087    233,321 
Other  5,136    1,408    14,792    6,265 
Total segment revenue  359,504    340,071    1,370,432    1,280,014 
Segment Adjusted EBITDA           
Consumer  26,400    32,207    119,643    138,158 
AFH  (4,809)   1,395    (12,844)   6,235 
Other  (1,283)   73    (4,510)   (163)
Total segment Adjusted EBITDA  20,308    33,675    102,289    144,230 
Reconciliation to Net Income (Loss):           
Depreciation and amortization  13,268    13,192    52,369    52,381 
Interest expense  12,183    10,467    48,059    42,021 
Change in amortized cost of Partnership units liability  (42,573)   18,835    (41,857)   23,013 
Change in fair value of derivatives  (69)   364    (364)   364 
(Gain) loss on sale of property, plant and equipment  188    (1)   622    (3)
(Gain) loss on sale of non-financial assets  3    5    (204)   (75)
Restructuring costs, net  -    54    1    (180)
Foreign exchange (gain) loss  1,308    931    1,431    (1,387)
Income (loss) before income taxes  36,000    (10,172)   42,232    28,096 
Income taxes  (1,989)   7,916    (3,174)   12,838 
Net income (loss)  37,989    (18,088)   45,406    15,258 
Geographic Revenue           
Canada  207,490    203,638    803,565    774,587 
U.S.  127,733    120,127    479,364    452,837 
Mexico  24,281    16,306    87,503    52,590 
Total revenue  359,504    340,071    1,370,432    1,280,014 


KP Tissue Inc.
Statement of Financial Position
(thousands of Canadian dollars)
      
 December 31, 2018  December 31, 2017 
 $  $ 
Assets     
Current assets     
Distributions receivable  1,694    1,658 
Receivable from Partnership  269    -  
Income tax recoverable  230    826 
   2,193    2,484 
Non-current assets     
Investment in associate  103,143    98,674 
Total Assets  105,336    101,158 
Liabilities     
Current liabilities     
Dividend payable  1,694    1,658 
Payable to Partnership  -     52 
Current portion of advances from Partnership  -     309 
   1,694    2,019 
Non-current liabilities     
Advances from Partnership  269    731 
Deferred income taxes   4,602    1,483 
Total liabilities  6,565    4,233 
Equity     
Common shares  17,090    15,014 
Contributed surplus   144,819    144,819 
Deficit  (79,515)   (74,952)
Accumulated other comprehensive income  16,377    12,044 
Total equity  98,771    96,925 
Total liabilities and equity  105,336    101,158 


KP Tissue Inc.
Statement of Comprehensive Income (Loss)
(thousands of Canadian dollars, except share and per share amounts)
            
 3-month
period ended
December 31, 2018
  3-month
period ended
December 31, 2017
  12-month
period ended
December 31, 2018
  12-month
period ended
December 31, 2017
 
 $  $  $  $ 
Equity Income (loss)  4,576    (4,371)   1,390    (3,440)
Dilution gain   58    54    196    190 
Income (loss) before income taxes  4,634    (4,317)   1,586    (3,250)
Income taxes  1,808    (97)   1,759    2,191 
Net income (loss) for the year  2,826    (4,220)   (173)   (5,441)
Other comprehensive income (loss)           
net of tax expense (recovery)           
Items that will not be reclassified to net income (loss):           
Remeasurements of pensions   (1,640)   (961)   2,334    (3,846)
Remeasurements of post-retirement benefits   16    (243)   776    (270)
Items that may be subsequently reclassified to net income (loss):           
Cumulative translation adjustment   2,679    931    4,333    (3,774)
Total other comprehensive income (loss) for the year  1,055    (273)   7,443    (7,890)
Comprehensive income (loss) for the year  3,881    (4,493)   7,270    (13,331)
Basic income (loss) per share  0.30    (0.46)   (0.02)   (0.59)
Weighted average number of shares outstanding  9,400,074    9,206,637    9,319,683    9,162,508 


KP Tissue Inc.
Statement of Cash Flows
(thousands of Canadian dollars)
            
 3-month
period ended
December 31, 2018
  3-month
period ended
December 31, 2017
  12-month
period ended
December 31, 2018
  12-month
period ended
December 31, 2017
 
 $  $  $  $ 
Cash flows from (used in) operating activities           
Net income (loss) for the year  2,826    (4,220)   (173)   (5,441)
Items not affecting cash           
Equity (income) loss  (4,576)   4,371    (1,390)   3,440 
Dilution gain   (58)   (54)   (196)   (190)
Income taxes  1,808    (97)   1,759    2,191 
Total items not affecting cash  (2,826)   4,220    173    5,441 
Net change in non-cash working capital   -    -    -    478 
Tax (payments) refunds  736    -    462    (1,999)
Tax Distribution received  -    -    -    481 
Advances received  -    -    274    1,040 
Advances paid  (736)   -    (736)   - 
Net cash from (used in) operating activities  -    -    -    - 
Cash flows from investing activites           
Partnership unit distributions received  1,158    1,220    4,640    4,806 
Net cash from investing activities  1,158    1,220    4,640    4,806 
Cash flows used in financing activities           
Dividends paid  (1,158)   (1,220)   (4,640)   (4,806)
Net cash used in financing activities  (1,158)   (1,220)   (4,640)   (4,806)
Increase (decrease) in cash and cash equivalents during the year  -    -    -    - 
Cash and cash equivalents - Beginning of year  -    -    -    - 
Cash and cash equivalents - End of year  -    -    -    -