Mercer International Inc. (MERC) CEO David Gandossi on Q4 2021 Results - Earnings Call Transcript

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Q4: 2022-02-17 Earnings Summary

EPS of $1.12 beats by $0.25
 | Revenue of $518.96M (30.33% Y/Y) beats by $2.90M

Mercer International Inc. (NASDAQ:MERC) Q4 2021 Results Conference Call February 18, 2022 10:00 AM ET

Company Participants

David Gandossi - President and CEO
David Ure - SVP, Finance, CFO and Secretary

Conference Call Participants

Sean Steuart - TD Securities
Hamir Patel - CIBC Capital Markets
Andrew Shapiro - Lawndale Capital Management
DeForest Hinman - Walthausen & Company
Andrew Kuske - Credit Suisse
Paul Quinn - RBC Capital Markets
Cole Hathorn - Jefferies

Operator

Good morning and welcome to Mercer International’s Fourth Quarter 2021 Earnings Conference Call.

On the call today is David Gandossi, President and Chief Executive Officer of Mercer International; and David Ure, Senior Vice President, Finance, Chief Financial Officer and Secretary.

I will now hand the call over to David Ure.

David Ure

Good morning, everyone. I would like to remind you that in this morning’s conference call, we will make forward-looking statements. And according to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, I’d like to call your attention to the risks related to these statements, which are more fully described in our press release and in the Company’s filings with the Securities and Exchange Commission.

We achieved record EBITDA in Q4 on strong pulp and lumber sales volumes, high energy sales prices, a much lighter scheduled maintenance program when compared to Q3, and the settlement of the business interruption insurance claim associated with the repair our Peace River recovery boiler amidst 2021. These positive impacts were partially offset by lower pulp realizations in all markets.

Our Rosenthal pulp mill ran the entire quarter without the benefits of its turbine generator, which had the impact of lowering our EBITDA by about $30 million at today’s electricity prices. However, I’m happy to report that the turbine is being repaired and has returned to service in mid-January. We also

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