NASDAQ$MERC

Mercer International Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Mercer International Inc. reported increased Operating EBITDA and net income driven by higher pulp and lumber pricing, and strong energy pricing.

Mercer International Inc. reported second quarter 2022 results with increased Operating EBITDA to $145.1 million from $83.8 million in the second quarter of 2021. Net income was $71.4 million (or $1.08 per basic share and $1.07 per diluted share) compared to $21.4 million (or $0.32 per share) in the second quarter of 2021.

  • Second quarter net income of $71.4 million and Operating EBITDA of $145.1 million.
  • Operating EBITDA increased to a $145.1 million from $83.8 million in the second quarter of 2021.
  • Net income was $71.4 million compared to $21.4 million in the second quarter of 2021.
  • Record quarterly wood products operating income and energy revenues.

Headline financials

Total Revenue

$572M

Previous: $402M+42.4%
EPS (adj)

$1.07

Previous: $0.32+234.4%
Avg Lumber Sales Realizations

$867.00

Previous: $789.00+9.9%
Capital Expenditures

-$47M

Previous: -$62.1M+24.3%
Free Cash Flow

$24.3M

Previous: -$40.7M+159.8%
Net Income

$71.4M

Previous: $21.4M+233.3%
Operating Income

$114M

Previous: $51.8M+120.0%
Gross Profit

-$435M

Previous: -$330M-31.8%
Cash & Equivalents

$420M

Previous: $385M+9.2%
Total Assets

$2.42B

Previous: $2.21B+9.1%
Stock-Based Comp

$1.52M

Previous: $975K+55.6%

Revenue & EPS history

Mercer · Revenue · Quarterly

$572M

Q2 2022+42.4%vs Q2 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

As we move into the third quarter, we expect stable pulp prices as a result of low customer inventory levels and supply constraints. We expect lumber prices in the United States to be generally stable and prices in Europe to decline from the second quarter but remain at historically attractive levels in both markets. Further, we expect continued strong energy demand and prices in Germany in the third quarter of 2022. Currently our 2022 capital expenditures are on track to total approximately $175 million to $200 million.

Tailwinds

  • Stable pulp prices are expected due to low customer inventory levels and supply constraints.
  • Lumber prices in the United States are expected to be generally stable.
  • Lumber prices in Europe are expected to decline from the second quarter but remain at historically attractive levels.
  • Continued strong energy demand and prices are expected in Germany in the third quarter of 2022.

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 2022

Historical avgQ2 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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