Catalyst Paper of Richmond, BC, reported a net loss of $28 million for the second quarter of 2013, a period which the company describes as being heavily impacted by maintenance downtime. Catalyst reported a 2013 first quarter net loss of $9.8 million.
Before specific items, the company’s net loss in the second quarter of 2013 was $18.1 million. Specific items in Catalyst’s Q2 included a $2.1 million gain on the sale of the Elk Falls industrial site, a non-cash loss on the mandatory redemption of Exit Notes of $2.3 million and a $9.6 million non-cash loss on the effect of foreign exchange in relation to the U.S. dollar.
Revenues of $263.4 million for the second quarter of 2013 were up from the prior quarter, reflecting higher sales volumes for specialty uncoated, newsprint and directory, higher transaction prices for newsprint and pulp. Pulp sales volume was up over the same quarter of 2012 as was the transaction price.
Cash flow from operations increased by $11.2 million and liquidity improved by $63.1 million from the same period last year, according to Catalyst, due in part to borrowing base improvements, asset sale proceeds and a return to more normalized vendor payment terms since the company’s exit from creditor protection.
When comparing 2013 second quarter results to the same period of the prior year, Catalyst notes that newsprint and directory showed the steepest decline at 8.9 percent and 15.2 percent, respectively, while the decline in specialty coated at 4.9 percent and specialty uncoated at 1.3 percent was less pronounced.