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Press release from CNW Group

Cascades releases fourth quarter and full year 2012 results

Thursday, February 21, 2013

Cascades releases fourth quarter and full year 2012 results06:30 EST Thursday, February 21, 2013KINGSEY FALLS, QC, Feb. 21, 2013 /CNW Telbec/ - Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue paper products, announces its unaudited financial results for the three-month period and the fiscal year ended December 31, 2012.Annual HighlightsSales of $3,645 million (compared to $3,625 million in 2011 (+1%))Excluding specific itemsEBITDA of $304 million (compared to $229 million in 2011 (+33%))Net earnings per share of $0.17 (compared to a net loss of $0.14 in 2011)Including specific itemsEBITDA of $274 million (compared to $188 million in 2011 (+46%))Net loss per share of $0.11 (compared to net earnings of $1.03 in 2011)Consolidation of our corrugated products sector in Ontario with the acquisition of Bird Packaging Limited and concurrent investments totaling $30 millionConsolidation of our folding carton and microlithography operations with investments totaling $20 millionEquipment upgrades at Cascades' mill in La Rochette and Reno de Medici's mill in Villa Santa Lucia in EuropeConstruction of the Greenpac project mill with start-up still expected in July 2013Price increase announcement during the fourth quarter in our containerboard sectorQ4-2012 HighlightsSales of $904 million(compared to $906 million in Q3-2012 (-%) and $913 million in Q4-2011 (-1%))Excluding specific itemsEBITDA of $70 million(compared to $78 million in Q3-2012 (-10%) and $51 million in Q4-2011 (+37%))Net loss per share of $0.02(compared to net earnings of $0.07 in Q3-2012 and a net loss of $0.04 in Q4-2011)Including specific itemsEBITDA of $39 million(compared to $83 million in Q3-2012 (-53%) and $37 million in Q4-2011 (+5%))Net loss per share of $0.30(compared to net earnings of $0.05 in Q3-2012 and net earnings of $0.05 in Q4-2011)Net debt of $1,535 million (compared to $1,542 million as at September 30, 2012), including $133 million of non-recourse debtMr. Alain Lemaire, President and Chief Executive Officer, had the following comments on the fourth quarter results:"We ended 2012 on a better note than last year. Despite a sequential performance which reflects inherent seasonality associated with the fourth quarter in North America, the results released today are encouraging in a number of ways. Our Tissue Papers Group continues to perform well. The sequential decline in recycled paper costs and the gradual implementation of price hikes contributed positively to the results of our Containerboard Group manufacturing activities. The maintenance downtime period did not allow this segment to achieve the desired utilization rate but the performance of our flagship operations is gradually improving. The implementation of price increases in the corrugated products sector is in line with our expectations but the product mix negatively impacted the performance of our converting operations during the fourth quarter. In our Specialty Products Group, shipments of specialty papers and converted products were lower than expected, which had a negative impact on financial results. In Europe, we have been able to capitalize on capacity closures to make the best of a difficult market environment."Financial SummarySelected consolidated information     (in millions of Canadian dollars, except amounts per share) (unaudited)20122011Q4/2012Q4/2011Q3/2012      Sales3,6453,625904 913906Excluding specific items 1      Operating income before depreciation and amortization (OIBD or EBITDA)30422970 5178 Operating income1184922 -33 Net earnings (loss)16(14)(2) (4)7  per common share$0.17$(0.14)$(0.02)$(0.04)$0.07 Cash flow from continuing operations (adjusted)167133354044 Margin (OIBD or EBITDA)8.3%6.3%7.7%5.6%8.6%As reported      Operating income before depreciation and amortization (OIBD or EBITDA)274188393783 Operating income (loss)758(19)(14)36 Net earnings (net loss)(11)99(29)55  per common share$(0.11)$1.03$(0.30)$0.05$0.05 Cash flow from continuing operations (adjusted)161126343542Note 1 - see the supplemental information on non-IFRS measures.      Segmented OIBD excluding specific items     (in millions of Canadian dollars) (unaudited)20122011Q4/2012Q4/2011Q3/2012      Packaging Products      Containerboard9585251926 Boxboard Europe424211107 Specialty Products49348215      Tissue Papers13872312835      Corporate Activities(20)(4)(5)(8)(5)      OIBD excluding specific items304229705178 Results analysis for the three-month period ended December 31, 2012 (compared to the same period last year)In comparison with the same period last year, sales decreased by 1% to $904 million as of result of lower average selling prices and an unfavorable CAD/Euro exchange rate which more than offset the net impact of business acquisitions over divestitures and closures as well as lower shipments.Despite the above-mentioned factors, operating income, excluding specific items, increased from nil during Q4-2011 to $22 million for the last quarter of 2012 mainly as a result of lower raw material and production costs as well as higher volumes. These factors were offset by lower average selling prices in all our sectors, including the impact of unfavorable product mixes. On a segmented basis, our four sectors surpassed their 2011 fourth quarter's results. When including specific items, the operating loss amounted to $19 million in comparison to $14 million for the same period of last year. In the fourth quarter of 2012, the following specific items impacted our operating income and/or net earnings (before tax):a $27 million loss resulting from impairment charges on assets (impact on operating income and net earnings);a $10 million expense related to accelerated depreciation of assets due to restructuring measures (operating income and net earnings);$3 million of closure and restructuring costs (operating income and net earnings);a $1 million unrealized loss on financial instruments (operating income and net earnings);a $6 million foreign exchange gain on long-term debt and financial instruments (net earnings).The net loss excluding specific items amounted to $2 million ($0.02 per share) in the fourth quarter of 2012 compared to a net loss of $4 million ($0.04 per share) for the same period in 2011. Including specific items, the net loss amounted to $29 million ($0.30 per share) compared to net earnings of $5 million ($0.05 per share) for the same quarter in 2011.For further details, see the following tables on IFRS and non-IFRS measures reconciliation included herewith.Results analysis for the three-month period ended December 31, 2012 (compared to the previous quarter)In comparison to the previous quarter, sales remained stable. A favorable foreign exchange rate and higher external shipments partially counterbalanced the lower average selling prices. Excluding specific items, operating income decreased by $11 million to reach $22 million primarily due to an increased depreciation expense and lower selling prices that more than offset a decrease in raw material costs. Net earnings for the quarter decreased by $9 million resulting in a net loss of $2 million.Net debt decreased by $7 million to $1,535 million due to free cash flows generated, primarily in the management of our working capital.Results analysis for the fiscal year ended December 31, 2012In comparison to last year, sales increased by 1% to $3.6 billion reflecting the net contribution of business acquisitions over divestitures and the full consolidation of the results of Reno de Medici since Q2 2011. These factors were offset by the negative impact of a stronger Canadian dollar as well as lower shipments and average selling prices.In addition to the above-mentioned factors, the lower cost for raw materials contributed to increase the operating income excluding specific items to $118 million compared to $49 million last year. Operating income including specific items increased by $67 million to reach $75 million.In 2012, net earnings excluding specific items amounted to $16 million ($0.17 per share) compared to a net loss of $14 million ($0.14 per share) last year. Including specific items, the net loss reached $11 million ($0.11 per share) compared to net earnings of $99 million ($1.03 per share) in 2011. Impairment charges and restructuring measures impacted net earnings during the last two years. In 2011, specific items included the gain from the sale of Dopaco.Near-term outlookIn commenting on the near term outlook, Mr. Lemaire added: "2013 will be an important year for Cascades. In addition to the start-up of Cascades' largest project to date, Greenpac, we will benefit from other strategic initiatives we undertook over the last two years. In North America, industry fundamentals remain positive for our two core sectors. Demand in the tissue papers sector continues to be robust despite ongoing capacity additions. In the containerboard sector, the corrugated box price increase is gradually being implemented and is expected to be fully effective during the second quarter. In North America, we do not expect a significant move in the price of recovered papers in the beginning of the year. The situation is different in Europe and presents significant uncertainty in relation to costs and market conditions."Dividend on common shares and normal course issuer bidThe Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid March 14, 2013 to shareholders of record at the close of business on March 4, 2013. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada).In the fourth quarter of 2012, Cascades purchased for cancellation 123,786 shares at an average price of $4.40 representing an aggregate amount of approximately $0.5 million.Conference call informationManagement will comment the 2012 fourth quarter and annual financial results during a conference call to be held today at 10:00am.Financial analysts, investors, media and other interested individuals are invited to listen to the conference call by dialing 1-888-231-8191. The conference call, including the investor presentation, will also be broadcast live on the Cascades corporate website (www.cascades.com, tab Investors of the Home page). The broadcast replay will be available on the Cascades corporate website and by phone until March 1, 2013 by dialing 1-855-859-2056 and by using access code 868625993#.Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Corporation employs more than 12,000 employees, who work in more than 100 units located in North America and Europe. With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades continues to serve its clients with innovative products. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Corporation's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Corporation's Securities and Exchange Commission filings.CONSOLIDATED BALANCE SHEETS(in millions of Canadian dollars) (unaudited)December 31,2012December 31,2011Assets  Current assets  Cash and cash equivalents2012Accounts receivable513535Current income tax assets2224Inventories497516Financial assets156Assets held for sale-12 1,0671,105Long-term assets  Investments in associates and joint ventures222219Property, plant and equipment1,6591,703Intangible assets200185Financial assets1325Other assets7044Deferred income tax assets128119Goodwill and others335328 3,6943,728Liabilities and Equity  Currentliabilities  Bank loans and advances8090Trade and other payables551539Current income tax liabilities12Current portion of provisions for contingencies and charges65Current portion of financial liabilities and other liabilities7420Current portion of long-term debt6049 772705Long-term liabilities  Long-term debt1,4151,358Provisions for contingencies and charges3333Financial liabilities36111Other liabilities264249Deferred income tax liabilities80107 2,6002,563Equity attributable to Shareholders  Capital stock482486Contributed surplus1614Retained earnings567615Accumulated other comprehensive loss(87)(86) 9781,029Non-controlling interest116136Total equity1,0941,165 3,6943,728CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) For the 3-month periodsended December 31,For the years endedDecember 31,(in millions of Canadian dollars, except per share amounts and number of shares) (unaudited)2012201120122011Sales9049133,6453,625Cost of sales and expenses    Cost of sales (including depreciation and amortization of $58 million for the 3-month period (2011-$51 million) and $199 million for the year (2011-$180 million))7968193,1573,247Selling and administrative expenses9696382362Gain on disposals and others-(38)(1)(48)Impairment charges and restructuring costs30473667Foreign exchange loss (gain)-22(19)Loss (gain) on derivative financial instruments11(6)8 9239273,5703,617Operating income (loss)(19)(14)758Financing expense2525100100Foreign exchange gain on long-term debt and financial instruments(6)(9)(8)(4)Share of loss (earnings) of associates and joint ventures1(3)(2)(14)Loss before income taxes(39)(27)(15)(74)Recovery of income taxes(9)(31)(2)(56)Net earnings (loss) from continuing operations including non-controlling interest for the period(30)4(13)(18)Net earnings (loss) from discontinued operations for the period(3)1(5)114Net earnings (loss) including non-controlling interest for the period(33)5(18)96Net loss attributable to non-controlling interest(4)-(7)(3)Net earnings (loss) attributable to Shareholders for the period(29)5(11)99Net earnings (loss) from continuing operations per common share     Basic$(0.27)$0.04$(0.06)$(0.16) Diluted$(0.27)$0.04$(0.06)$(0.16)Net earnings (loss) per common share     Basic$(0.30)$0.05$(0.11)$1.03 Diluted$(0.30)$0.05$(0.11)$1.02Weighted average basic number of common shares outstanding93,960,37295,108,89194,157,72696,013,220     Net earnings (loss) attributable to Shareholders:     Continuing operations (26)4(6)(15) Discontinued operations(3)1(5)114Net earnings (loss)(29)5(11)99CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the 3-month periodsended December 31,For the years endedDecember 31,(in millions of Canadian dollars) (unaudited)2012201120122011Net earnings (loss) including non-controlling interest for the period(33)5(18)96Other comprehensive income (loss)     Translation adjustments      Change in foreign currency translation of self-sustaining foreign subsidiaries13(25)(13)(18)  Change in foreign currency translation related to net investment hedging activities(5)89(6)  Income taxes1(1)(1)1 Cash flow hedges      Change in fair value of foreign exchange forward contracts(1)(6)6(11)  Change in fair value of interest rate swaps(1)(15)(7)(23)  Change in fair value of commodity derivative financial instruments1(10)4(11)  Income taxes-12-14 Actuarial loss on post-employment benefit obligations19(13)(42)(66)  Income taxes(6)31117Other comprehensive income (loss)21(47)(33)(103)Comprehensive loss including non-controlling interest for the period(12)(42)(51)(7)Comprehensive income (loss) attributable to non-controlling interest for the period(4)(6)(12)(8)Comprehensive income (loss) attributable to Shareholders for the period(8)(36)(39)1     Comprehensive income (loss) attributable to Shareholders:      Continuing operations(5)(37)(34)(113)  Discontinued operations(3)1(5)114Comprehensive income (loss)(8)(36)(39)1CONSOLIDATED STATEMENTS OF EQUITY For the year ended December 31, 2012(in millions of Canadian dollars) (unaudited)Capital stockContributedsurplusRetainedearningsAccumulatedothercomprehensivelossTotal equityattributable toShareholdersNon-controllinginterestTotal equityBalance—Beginning of period48614615(86)1,0291361,165 Comprehensive loss         Net loss--(11)-(11)(7)(18)  Other comprehensive loss--(27)(1)(28)(5)(33) --(38)(1)(39)(12)(51) Dividends--(15)-(15)-(15) Stock options-1--1-1 Redemption of common shares(4)1--(3)-(3) Acquisition of non-controlling interest--5-5(8)(3)Balance—End of period48216567(87)9781161,094  For the year ended December 31, 2011(in millions of Canadian dollars) (unaudited)Capital stockContributedsurplusRetainedearningsAccumulatedothercomprehensivelossTotal equityattributable toShareholdersNon-controllinginterestTotal equityBalance—Beginning of period49614576(37)1,049231,072 Comprehensive income (loss)         Net earnings (loss)--99-99(3)96  Other comprehensive income (loss)--(49)(49)(98)(5)(103) --50(49)1(8)(7) Dividends--(15)-(15)-(15) Stock options1---1-1 Redemption of common shares(11)---(11)-(11) Business acquisitions-----129129 Acquisition of non-controlling interest--4-4(7)(3) Dividend paid to non-controlling interest-----(1)(1)Balance—End of period48614615(86)1,0291361,165CONSOLIDATED STATEMENTS OF CASH FLOWS For the 3-month periodsended December 31,For the years endedDecember 31,(in millions of Canadian dollars) (unaudited)2012201120122011Operating activities from continuing operations    Net earnings (loss) attributable to Shareholders for the period(29)5(11)99Net loss (earnings) from discontinued operations for the period3(1)5(114)Net earnings (loss) from continuing operations(26)4(6)(15)Adjustments for     Financing expense2525100100 Depreciation and amortization5851199180 Gain on disposals and others-(38)(1)(48) Impairment charges and restructuring costs29423060 Loss (gain) on derivative financial instruments11(5)12 Foreign exchange gain on long-term debt and financial instruments(6)(9)(8)(4) Recovery of income taxes(9)(31)(2)(56) Share of loss (earnings) of associates and joint ventures1(3)(2)(14) Net loss attributable to non-controlling interest(4)-(7)(3) Net financing expense paid(34)(32)(99)(97) Income taxes received (paid)311(17)(2) Dividend received5161016 Employee future benefits and others(9)(2)(31)(3) 3435161126Changes in non-cash working capital components586742(22) 92102203104Investing activities from continuing operations    Investments in associates and joint ventures-(18)(19)(65)Purchase of property, plant and equipment(47)(51)(161)(141)Proceeds on disposal of property, plant and equipment-222032Change in other assets(10)(8)(39)1Business acquisitions, net of cash acquired-(56)(14)(60)Proceeds on disposals of business, net of cash disposed-(2)-4 (57)(113)(213)(229)Financing activities from continuing operations    Bank loans and advances(18)(25)(11)4Change in revolving credit facilities13146117(120)Purchase of senior notes(5)-(8)-Payments of other long-term debt(20)(13)(63)(26)Increase in other long-term debt3283Redemption of common shares-(3)(3)(11)Acquisition of non-controlling interest including dividend paid(1)(2)(3)(4)Dividends paid to the Corporation's Shareholders(4)(3)(15)(15) (32)10222(169)Change in cash and cash equivalents during the period from continuing operations39112(294)     Change in cash and cash equivalents from discontinued operations, including proceeds on disposal during the period1(92)(4)298     Net change in cash and cash equivalents during the period4(1)84     Currency translation on cash and cash equivalent-2-2     Cash and cash equivalents—Beginning of period1611126     Cash and cash equivalents—End of period20122012SEGMENTED INFORMATIONThe Corporation analyzes the performance of its operating segments based on their operating income before depreciation and amortization, which is not a measure of performance under International Financial Reporting Standards ("IFRS"); however, the chief operating decision-maker ("CODM") uses this performance measure for assessing the operating performance of each reportable segment. Earnings for each segment are prepared on the same basis as those of the Corporation. Intersegment operations are recorded on the same basis as sales to third parties, which are at fair market value. The accounting policies of the reportable segments are the same as the Corporation's accounting policies described in its most recent audited consolidated financial statements for the year ended December 31, 2011.The Corporation's operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The Chief Executive Officer has authority for resource allocation and assessment of the Corporation's performance and is therefore the CODM.In 2012, the Corporation changed the structure of its internal organization in a manner that caused the composition of its reportable segment to change. As a result, starting January 1, 2012, the Corporation modified its segmented information disclosure and restated prior periods. Containerboard and Boxboard North American manufacturing and converting activities are now presented within one segment. Boxboard European activities are reported as a separate segment.The Corporation's operations are managed in four segments: Containerboard, Boxboard Europe, Specialty Products (which constitutes the Packaging Products of the Corporation) and Tissue Papers. Sales For the 3-month periods endedDecember 31,For the years endedDecember 31,(in millions of Canadian dollars) (unaudited)2012201120122011Packaging Products     Containerboard3062991,1891,293 Boxboard Europe198206791745 Specialty Products183206791851 Intersegment sales(14)(22)(68)(104) 6736892,7032,785Tissue Papers242233979871Intersegment sales and others(11)(9)(37)(31)Total9049133,6453,625  Operating income (loss) before depreciation and amortization For the 3-month periods endedDecember 31,For the years endedDecember 31,(in millions of Canadian dollars) (unaudited)2012201120122011Packaging Products     Containerboard(1)(7)6445 Boxboard Europe873842 Specialty Products8(10)4916 15(10)151103Tissue Papers325013893Corporate(8)(3)(15)(8)Operating income before depreciation and amortization3937274188Depreciation and amortization(58)(51)(199)(180)Financing expense(25)(25)(100)(100)Foreign exchange gain on long-term debt and financial instruments6984Share of earnings (loss) of associates and joint ventures(1)3214Loss before income taxes(39)(27)(15)(74)  Purchases of property, plant and equipment For the 3-month periods endedDecember 31,For the years endedDecember 31,(in millions of Canadian dollars) (unaudited)2012201120122011Packaging Products     Containerboard25247254 Boxboard Europe1082930 Specialty Products5111526 4043116110Tissue Papers21143431Corporate561914Total purchases6663169155Proceeds on disposal of property, plant and equipment-(22)(20)(32)Capital-lease acquisition(1)(3)(5)(7) 6538144116Purchases of property, plant and equipment included in trade and other payables     Beginning of period10162518 End of period(28)(25)(28)(25)Purchases of property, plant and equipment net of proceeds on disposal4729141109SUPPLEMENTAL INFORMATION ON NON-IFRS MEASURESOperating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations are not measures of performance under IFRS. The Corporation includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations because they are measures used by management to assess the operating and financial performance of the Corporation's operating segments. Additionally, the Corporation believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations do not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with IFRS, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income and cash flow from operations may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with IFRS excluding the change in working capital components.Operating income before depreciation and amortization excluding specific items, earnings before interests, taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items, net earnings per common share excluding specific items and cash flow from operations excluding specific items are non-IFRS measures. The Corporation believes that it is useful for investors to be aware of specific items that have adversely or positively affected its IFRS measures, and that the above mentioned non-IFRS measures provide investors with a measure of performance  with which to compare its results between periods without regard to these specific items. The Corporation's measures excluding specific items have no standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, accelerated depreciation of assets due to restructuring measures, debt restructuring charges, gains or losses on sale of business unit, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature.The following table reconciles net earnings (loss) and net earnings (loss) per share to net earnings (loss) excluding specific items and net earnings (loss) per share excluding specific items:     (in millions of Canadian dollars, except amounts per share) (unaudited)   Net earnings (loss) Net earnings (loss) per share 1  2012 2011 Q4/2012 Q4/2011 Q3/2012 2012 2011 Q4/2012 Q4/2011 Q3/2012                     As per IFRS (11) 99 (29) 5 5 $(0.11) $1.03 $(0.30) $0.05 $0.05Specific items :                    Inventory adjustment resulting from business acquisition - 10 - 4 - $ - $0.08 $ - $0.04 $ -Gain on disposals and others (1) (48) - (38) - $(0.01) $(0.55) $ - $(0.40) $ -Impairment charges 29 59 27 44 1 $0.23 $0.45 $0.22 $0.34 $ -Restructuring costs 7 8 3 3 - $0.05 $0.06 $0.02 $0.02 $ -Unrealized loss (gain) on financial instruments (5) 12 1 1 (6) $(0.04) $0.11 $ - $0.01 $(0.04)Accelerated depreciation and amortization due to restructuring measures 13 - 10 - 2 $0.10 $ - $0.08 $ - $0.01Foreign exchange loss (gain) on long-term debt and financial instruments (8) (4) (6) (9) 5 $(0.07) $(0.04) $(0.05) $(0.08) $0.05Share of earnings of associates, joint ventures and non-controlling interest (3) (3) (1) (2) - $(0.03) $(0.03) $(0.02) $(0.02) $ -Included in discontinued operations, net of tax 5 (108) 3 (1) - $0.05 $(1.13) $0.03 $ - $ -Tax effect on specific items and other tax adjustments (10) (39) (10) (11) - $ - $(0.12) $ - $ - $ -  27 (113) 27 (9) 2 $0.28 $(1.17) $0.28 $(0.09) $0.02Excluding specific items 16 (14) (2) (4) 7 $0.17 $(0.14) $(0.02) $(0.04) $0.07Note 1 - Specific amounts per share are calculated on an after-tax basis Per share amounts of line item "Tax effect on specific items and other tax adjustments" only include the effect of tax adjustments. Net earnings (loss), which is a performance measure defined by IFRS is reconciled below to operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interests, taxes, depreciation and amortization excluding specific items:      (in millions of Canadian dollars) (unaudited)20122011Q4/2012Q4/2011Q3/2012      Net earnings (loss) attributable to Shareholders for the period(11)99(29)55Net loss (earnings) from discontinued operations for the period5(114)3(1)-Net loss attributable to non-controlling interest(7)(3)(4)-(1)Share of loss (earnings) of associates and joint ventures(2)(14)1(3)1Provision (recovery) of income taxes(2)(56)(9)(31)1Foreign exchange loss (gain) on long-term debt and financial instruments(8)(4)(6)(9)5Financing expense100100252525      Operating income (loss)758(19)(14)36Specific items :     Gain on disposals and others(1)(48)-(38)-Inventory adjustment resulting from business acquisition-10-4-Impairment charges295927441Restructuring costs7833-Unrealized loss (gain) on financial instruments(5)1211(6)Accelerated depreciation and amortization due to restructuring measures13-10-2 43414114(3)      Operating income - excluding specific items1184922-33Depreciation and amortization, excluding specific items186180485145Operating income before depreciation and amortization (OIBD or EBITDA) - excluding specific items304229705178The following table reconciles cash flow provided by (used from) operating activities to cash flow (adjusted) from operations excluding specific items:       Cash flow from operations   (in millions of Canadian dollars) (unaudited)20122011Q4/2012Q4/2011Q3/2012      Cash flow provided by (used from) operating activities20310492 10254Changes in non-cash working capital components(42)22(58) (67)(12)Cash flow (adjusted) from operations16112634 3542Specific items, net of current income tax     Restructuring costs671 52Excluding specific items16713335 4044    SOURCE: CASCADES INC.For further information: Media:  Hugo D'Amours  Vice-President, Communications and Public Affairs  (819) 363-5184Source:  Allan Hogg Vice-President and Chief Financial OfficerInvestors:  Riko Gaudreault  Director, Investor relations  (514) 282-2697 Also follow us on social medias: Website: www.cascades.com Twitter: twitter.com/@CascadesInvest Facebook : facebook.com/Cascades YouTube : youtube.com/Cascades