NASDAQ$MERC

Mercer International Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Mercer International Inc. reported increased Operating EBITDA and net income compared to the second quarter of 2020.

Mercer International Inc. reported second quarter 2021 Operating EBITDA increased to $83.8 million from $40.5 million in the second quarter of 2020. Net income was $21.4 million (or $0.32 per share) compared to a net loss of $8.4 million (or $0.13 per share) in the second quarter of 2020.

  • Record quarterly wood products segment results
  • Operating EBITDA increased to $83.8 million
  • Net income was $21.4 million (or $0.32 per share)
  • Completed Capital Program to Increase Stendal Mill production by 80,000 ADMTs per year

Headline financials

Total Revenue

$402M

Previous: $341M+17.8%
EPS (adj)

$0.32

Previous: -$0.13+346.2%
Avg Lumber Sales Realizations

$789.00

Previous: $345.00+128.7%
Capital Expenditures

-$62.1M

Previous: -$21.5M-188.4%
Free Cash Flow

-$40.7M

Previous: -$30M-35.9%
Net Income

$21.4M

Previous: -$8.41M+354.6%
Operating Income

$51.8M

Previous: $10.3M+402.5%
Gross Profit

-$330M

Previous: -$315M-4.8%
Cash & Equivalents

$385M

Previous: $303M+26.8%
Total Assets

$2.21B

Previous: $1.97B+12.2%
Stock-Based Comp

$975K

No prior period

Revenue & EPS history

Mercer · Revenue · Quarterly

$402M

Q2 2021+17.8%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
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

Looking ahead to the third quarter, we expect strong pulp market fundamentals to support marginally higher NBSK pulp prices in Europe but we expect a modest price decline in China. As well, we expect lumber demand and pricing to remain steady in all markets. Although there was a recent significant price correction in the U.S. lumber market, prices remain at historically attractive levels. Further, we believe U.S. lumber prices are near a floor level and expect them to slowly increase once home construction ramps up in the early fall.

Tailwinds

  • Strong pulp market fundamentals to support marginally higher NBSK pulp prices in Europe
  • Lumber demand and pricing to remain steady in all markets
  • U.S. lumber prices remain at historically attractive levels
  • U.S. lumber prices are near a floor level
  • Ample liquidity leaves us well positioned to accelerate our strategic plan

Headwinds

  • We expect a modest price decline in China
  • Ongoing uncertainty about the impact of COVID-19 variations and increases in infection levels
  • Wildfires situation has impacted logistics, increasing rail congestion
  • Wildfires situation has slowed pulp deliveries
  • Wildfires situation is causing the use of more expensive trucking

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 Q2 2021

Historical avgQ2 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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