NASDAQ$MERC

Mercer International Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Mercer International Inc. reported increased operating EBITDA and net income driven by strong sales volumes and increased pricing.

Mercer International Inc. reported a strong first quarter in 2022, with record quarterly revenues in pulp, lumber, and energy. Operating EBITDA increased to $154.5 million, and net income reached $88.9 million ($1.35 per basic share). The results were driven by strong sales volumes, increased pricing in pulp, lumber, and energy, and sales of surplus energy.

  • First quarter net income of $88.9 million and Operating EBITDA of $154.5 million.
  • Operating EBITDA increased to $154.5 million from $82.0 million in the first quarter of 2021.
  • Net income was $88.9 million, or $1.35 per basic share and $1.34 per diluted share, compared to $5.9 million, or $0.09 per share, in the first quarter of 2021.
  • Total revenues in 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.

Headline financials

Total Revenue

$593M

Previous: $413M+43.6%
EPS (adj)

$1.34

Previous: $0.09+1388.9%
Average NBSK Pulp Sales Realizations

$812.00

No prior period
Average NBHK Pulp Sales Realizations

$695.00

No prior period
Avg Lumber Sales Realizations

$840.00

Previous: $622.00+35.0%
Capital Expenditures

-$33.3M

Previous: -$25.3M-31.8%
Free Cash Flow

$55.6M

Previous: -$19.3M+387.7%
Net Income

$88.9M

Previous: $5.93M+1398.3%
Operating Income

$122M

Previous: $51M+139.8%
Gross Profit

-$448M

Previous: -$341M-31.4%
Cash & Equivalents

$411M

Previous: $395M+4.0%
Total Assets

$2.46B

Previous: $2.18B+12.8%
Stock-Based Comp

$949K

Previous: $610K+55.6%

Revenue & EPS history

Mercer · Revenue · Quarterly

$593M

Q1 2022+43.6%vs Q1 2021
Beat estimate in 11 of 14 quarters(79%)
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

Mercer International anticipates continued upward pricing pressure on pulp prices, strong lumber prices, and strong energy demand and prices in Germany for the second quarter of 2022.

Tailwinds

  • Expect some continued upward pricing pressure on pulp prices as a result of current supply-demand dynamics.
  • Lumber prices in the United States are generally expected to remain at historically strong levels into the summer.
  • Expect strong energy demand and prices in Germany to continue in the second quarter of 2022.
  • 2022 capital expenditures are on track to total approximately $175 to $200 million.
  • The CLT Facility will be a key foundation of our solid wood business.

Headwinds

  • Global logistics challenges continue to impact our business primarily with regards to North American rail traffic which led to us having to slow production at our Canadian pulp mills.
  • Higher costs for key inputs including fiber, energy and chemicals.
  • Per unit fiber costs will increase in the second quarter of 2022 due to continued strong demand.
  • Health and infection risks from COVID-19, including from variants, continue.
  • Lumber prices in the United States have declined in the last few weeks.

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 2022

Historical avgQ1 2022

+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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