NASDAQ$MERC

Mercer International Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Mercer International Inc. reported increased Operating EBITDA and net income, driven by higher pulp and lumber sales realizations and lower per unit fiber costs.

Mercer International Inc. reported a strong first quarter in 2021, with Operating EBITDA increasing to $82.0 million and net income reaching $5.9 million. The company benefited from improved pulp pricing and robust lumber demand, particularly in the U.S. market. The Friesau sawmill's strong performance and effective COVID-19 protection measures contributed to the positive results.

  • Operating EBITDA increased to $82.0 million from $57.0 million in the first quarter of 2020.
  • Net income was $5.9 million (or $0.09 per share) compared to a net loss of $3.4 million (or $0.05 per share) in the first quarter of 2020.
  • Pulp segment operating income increased by approximately 18% to $25.3 million.
  • Wood products segment had record operating income of $28.0 million compared to $5.6 million in the same quarter of 2020.

Headline financials

Total Revenue

$413M

Previous: $351M+17.7%
EPS (adj)

$0.09

Previous: -$0.05+280.0%
Avg Lumber Sales Realizations

$622.00

Previous: $348.00+78.7%
Capital Expenditures

-$25.3M

Previous: -$23M-9.7%
Free Cash Flow

-$19.3M

Previous: -$26.4M+26.8%
Net Income

$5.93M

Previous: -$3.39M+274.9%
Operating Income

$51M

Previous: $24.1M+112.1%
Gross Profit

-$341M

Previous: -$309M-10.4%
Cash & Equivalents

$395M

Previous: $287M+37.9%
Total Assets

$2.18B

Previous: $1.95B+11.6%
Stock-Based Comp

$610K

Previous: -$46K+1426.1%

Revenue & EPS history

Mercer · Revenue · Quarterly

$413M

Q1 2021+17.7%vs Q1 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Mercer · $468M total across 2 segments · Q3 2023

  • Pulp Segment
    $349M-23.6%
  • Solid Wood Segment
    $120M+61.0%

Forward guidance

The company expects further modest pulp price improvements in the second quarter of 2021 due to stable pulp demand and reduced supply. Strong lumber demand and prices are also expected to continue in the U.S. market, with modestly improving sales realizations in the European market.

Tailwinds

  • Further modest pulp price improvements expected in Q2 2021.
  • Stable pulp demand, particularly in China.
  • Reduced pulp supply.
  • Continuing strong lumber demand and prices in the U.S. market.
  • Modestly improving lumber sales realizations in the European market.

Headwinds

  • Continued economic uncertainty resulting from the resurgence of the COVID-19 pandemic.
  • Significant major maintenance scheduled this quarter, requiring a large number of specialty contractors.
  • Widespread increase in infection rates leading to re-imposed restrictions in various countries.
  • Planned annual maintenance downtime at pulp mills in Q2 2021.
  • Potential slower than planned restart at the Celgar mill.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-1.7%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+24.5%

Q4 2015

Best reaction

-15.5%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%-26.9%-24.3%
Q3 2025-6.9%-6.3%-11.7%
Q1 2025-7.3%-20.0%-15.0%
Q4 2024+16.9%+22.8%-1.1%
Q3 2024-0.2%-2.3%-4.3%
Q2 2024+6.6%+0.8%-12.6%
Q1 2024-2.4%-3.3%-17.2%
Q4 2023+9.1%+7.7%+20.4%
Q3 2023+22.4%+19.3%+23.4%
Q2 2023+7.1%-4.9%+7.1%
Q1 2023-5.1%-3.6%-6.7%
Q4 2022-2.4%-5.6%-17.8%
Q3 2022-4.7%-11.6%-3.4%
Q2 2022+0.0%-5.4%+1.8%
Q1 2022+1.4%+3.5%-5.4%
Q4 2021+1.4%+4.6%+11.0%
Q3 2021+2.2%+0.3%+5.7%
Q2 2021-0.3%+0.9%+0.4%
Q1 2021-3.8%-5.8%-13.4%
Q4 2020-4.8%-2.2%+5.9%
Q3 2020+6.8%+16.5%+39.9%
Q2 2020-6.9%-10.5%+6.0%
Q1 2020-2.9%-13.9%-16.1%
Q4 2019-5.5%-4.5%-30.8%
Q3 2019+3.4%+6.9%+1.9%
Q2 2019-5.4%-10.6%-7.6%
Q1 2019+23.8%+23.8%+2.0%
Q4 2018-2.3%-3.7%-9.4%
Q3 2018-8.0%-13.0%-30.8%
Q2 2018+2.1%+7.2%+5.7%
Q1 2018+1.5%+7.1%+20.6%
Q4 2017+1.5%-2.3%-0.8%
Q3 2017-2.4%+2.8%+0.0%
Q2 2017-7.0%-9.0%-9.0%
Q1 2017-2.0%-5.2%-7.6%
Q4 2016+0.4%+4.2%+2.1%
Q3 2016+1.9%+1.3%+23.2%
Q2 2016-3.2%-2.7%+2.9%
Q1 2016-12.8%
Q4 2015+24.5%
Q3 2015+1.7%
Q2 2015-0.9%
Q1 2015-2.4%
Q4 2014+0.9%
Q3 2014+11.4%
Q2 2014+0.3%
Q1 2014+8.3%
Q4 2013+0.6%
Q3 2013+5.6%
Q2 2013+0.0%
Q1 2013+0.5%
Q4 2012-0.7%
Q3 2012-0.1%
Q2 2012+7.2%
Q1 2011-0.1%
Q1 2012+0.6%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011-5.7%
Q3 2010-5.7%
Q2 2010-9.1%
Q2 2011-9.1%
Q4 2010-9.1%
Q1 2010-15.5%

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