Note: Financial references in US dollars unless otherwise indicated.
2014 HIGHLIGHTS
- Full-year earnings per share (diluted) of $0.48 on adjusted EBITDA of
$90 million
- Margin Improvement Program gains of $24 million
- Record annual production at six of 11 operating mills; production volume
up 6%
- Returned $116 million in dividends to shareholders in 2014; declared
quarterly dividend of CAD $0.25 per share to shareholders of record on
March 1, 2015
- Best-ever safety recordable rate of 0.69; received APA's 2013 Safest
Company Award
- Merger with Ainsworth announced last month - shareholders from both
companies voted over 99% in favour of transaction on January 27, 2015
TORONTO, Jan. 28, 2015 /CNW/ - Norbord Inc. (TSX: NBD) today reported
adjusted EBITDA of $90 million in 2014 compared to $287 million in 2013
on 31% lower North American benchmark oriented strand board (OSB)
prices. North American operations generated adjusted EBITDA of $54
million versus $255 million in the prior year and European operations
delivered adjusted EBITDA of $47 million versus $46 million in the
prior year. In the fourth quarter of 2014, Norbord recorded adjusted
EBITDA of $15 million, unchanged from the previous quarter and $14
million lower than the fourth quarter of 2013.
"US housing continues to recover, albeit at a more gradual pace than
originally anticipated. This put pressure on the North American OSB
market, which in turn impacted our financial results," said Peter
Wijnbergen, Norbord's President and CEO. "However, Norbord's mills in
both North America and Europe delivered excellent operational results
this year, with six mills setting annual production records. We
achieved $24 million in Margin Improvement gains, reflecting the
ongoing effort across our company to reduce manufacturing costs and
increase productivity. Our European panel business also had another
strong year in the face of an increasingly challenging macroeconomic
environment."
"Looking ahead, I remain positive about the unfolding housing recoveries
in all our core markets. Customer feedback suggests the North American
OSB supply chain is lean, which should support improving demand as we
head into the spring building season. I am confident our European
business will deliver continued strong results, in spite of the
pressure in Continental OSB markets, as OSB substitution is
accelerating and the economy in our largest market, the UK, is
outperforming the rest of Europe."
"As previously announced yesterday, I'm pleased to report that over 99%
of all shareholders and over 98% of minority shareholders voted in
favour of the proposed Ainsworth merger. We look forward to executing
on our vision to create a leading global wood products company focused
on OSB across North America, Europe and Asia."
Norbord generated earnings of $26 million or $0.49 per share ($0.48 per
share diluted) for the full year 2014 compared to $149 million or $2.92
per share ($2.79 per share diluted) in 2013. The Company recorded
earnings of $3 million or $0.06 per share (basic and diluted) in the
fourth quarter of 2014 versus $2 million or $0.04 per share (basic and
diluted) in the same quarter of 2013. Reported earnings included the
following one-time items:
$ millions | 2014 |
2013
| Q4-2014 |
Q3-2014
|
Q4-2013
|
Earnings before one-time items
| 19 |
147
| 1 |
-
|
9
|
Costs related to Ainsworth combination
| (5) |
-
| (5) |
-
|
-
|
2015 bond early redemption costs, after-tax
| - |
(16)
| - |
-
|
(16)
|
Non-recurring income tax recoveries
| 12 |
18
| 7 |
5
|
9
|
Earnings, as reported
| 26 |
149
| 3 |
5
|
2
|
Market Conditions
US housing starts totalled approximately 1.01 million in 2014, up 9%
from 0.93 million in 2013. Permits were also 4% higher
year-over-year. Single family starts, which use approximately three
times more OSB than multifamily, increased by 5%. The US housing
economists' consensus forecast for 2015 starts is approximately 1.15
million, which would be a 15% year-over-year improvement.
The North Central benchmark OBS price averaged $218 per thousand square
feet (Msf) (7/16-inch basis) in 2014 compared to $315 in 2013, a $97
decrease. North Central prices traded in a tight range for most of 2014
- from a high of $235 in May, decreasing to the $220 range during the
fall before finishing the year at $205. In the South East region, where
more than half of Norbord's North American OSB capacity is located,
benchmark prices averaged $188 compared to $277 in the prior year.
In the fourth quarter, North Central benchmark OSB prices averaged $216
per Msf, unchanged from the prior quarter and down $29 from the fourth
quarter of 2013. South East prices averaged $181 in the quarter, up $4
from the prior quarter and down $11 from the fourth quarter of 2013.
Norbord's core European panel markets in the UK, Germany and BeNeLux all
saw demand growth in 2014, despite the increasingly negative economic
news coming from the Eurozone. The UK, where three out of Norbord's
four European mills are located, led the recovery with unemployment
falling below 6%, GDP growth of over 2% and housing starts increased by
17% compared to the prior year, supported by first time homebuyer
incentives and improved consumer confidence. In Germany, Norbord's
largest Continental European market, housing starts increased by 5%,
the sixth consecutive year of growth.
Year-over-year, particleboard prices increased 7% while medium density
fibreboard (MDF) prices, which are less directly impacted by the
recovering housing sector, improved 2%. OSB prices, however, decreased
6% as eastern European supply was redirected toward the west due to the
ongoing conflict in the Ukraine.
Performance
Norbord achieved record safety performance with a company-wide
Occupational Safety and Health Administration (OSHA) recordable rate of
0.69 in 2014. In addition, four mills completed the year injury-free.
North American OSB shipments for the full year increased 5% compared to
the prior year. Fourth quarter shipments were in line with the third
quarter and modestly higher than the same quarter last year as higher
mill productivity partially offset a reduced production schedule. For
the full year, Norbord's operating OSB mills produced at approximately
100% of stated capacity (excluding the two curtailed mills in Huguley,
Alabama and Val-d'Or, Quebec) compared to 95% in 2013. Annual
production records were achieved at three of the Company's North
American OSB mills.
Effective at year-end 2014, Norbord's stated annual North American OSB
capacity was increased by 150 MMsf (3/8-inch basis), reflecting a
significant capital investment to rebuild the wood-handling end at the
Joanna, South Carolina mill.
Norbord's full-year North American OSB cash production costs per unit
(before mill profit share) decreased 1% versus 2013 as improved
productivity and lower raw material use more than offset higher raw
material prices. Excluding the impact of uncontrollable higher raw
material prices, unit costs decreased 3%.
Norbord continues to rebuild the press line at the curtailed Huguley,
Alabama mill to prepare it for a future restart. The Company has not
set a restart date, however, and will do so only when it is
sufficiently clear that customers require more product. Norbord does
not currently expect to restart its curtailed mill in Val-d'Or, Quebec
in 2015, but will continue to monitor market conditions.
In Europe, shipments increased 6% over the prior year. Production was
5% higher as Norbord's panel mills ran on full operating schedules in
2014, excluding maintenance and holiday shutdowns. The European mills
produced at approximately 105% of stated capacity in 2014, compared to
100% in 2013. Annual production records were achieved at the two OSB
mills and both the particleboard and MDF lines.
Effective at year-end 2014, Norbord's stated annual European capacity
was increased by a total of 170 MMsf (3/8-inch basis), reflecting
recent capital investments and improved operating efficiencies at the
Cowie, Scotland particleboard line, the Genk, Belgium OSB mill and the
Inverness, Scotland OSB mill.
Norbord's mills delivered Margin Improvement Program (MIP) gains of $24
million in 2014, primarily from improved productivity, lower raw
material use and a richer value-added product mix. Paybacks from
recent investments in fines screening technology across several mills
and the rebuild of the wood-handling end at the Joanna, South Carolina
mill also contributed to this year's strong MIP result.
Capital investments totaled $78 million in 2014 versus $83 million in
2013 and included the Joanna mill project, preliminary work to rebuild
the press line at the mothballed Huguley, Alabama mill and other
strategic projects across the Company's mills. Given the slower than
expected pace of the US housing recovery, further investment to prepare
the Huguley mill for restart has been deferred to 2015 and beyond.
Following two years of significant capital investment, Norbord's 2015
planned capital expenditures are expected to be reduced to $50 million,
which includes three fines screening projects and further
debottlenecking and cost reduction projects under the Company's
multi-year capital reinvestment strategy.
Operating working capital increased by $21 million during the year to
$65 million at year-end. This was largely driven by the impact of
lower mill profit share accruals and the timing of payments on accounts
payable. Working capital continues to be managed at minimal levels
across the Company.
At year-end, Norbord had unutilized liquidity of $367 million,
consisting of $25 million in cash and $342 million in unused credit
lines. The Company's tangible net worth was $404 million and net debt
to total capitalization on a book basis was 51%. Both ratios remain
well within bank covenants.
Dividend
On December 8, 2014, in conjunction with the announcement of the
combination with Ainsworth Lumber Co. Ltd. (Ainsworth), the Company
also announced that it anticipates that the Board of Directors of the
combined entity will continue with Norbord's variable dividend policy.
Taking into account growth and other attractive capital investment
opportunities, and to maintain flexibility in the Company's capital
structure, the Board of the Company announced that it expected to set
the quarterly dividend at CAD $0.25 per common share in the first
quarter of 2015. In the arrangement agreement with Ainsworth, the
Company has agreed to not pay more than CAD $0.25 per common share for
any future quarterly dividends with a record date prior to the closing
of the merger, after which the Board of the merged entity will
determine the appropriate level of dividends on a quarterly basis.
Accordingly, on January 27, 2015, Norbord's Board declared a quarterly
dividend of CAD $0.25 per common share, payable on March 21, 2015 to
shareholders of record on March 1, 2015.
The amount of future dividends under the Company's dividend policy, and
the declaration and payment thereof, will be based upon the Company's
financial position, results of operations, cash flow, capital
requirements and restrictions under the Company's existing revolving
bank lines and senior notes, as well as broader market and economic
conditions, among other factors, and shall be in compliance with
applicable law. The Board retains the power to amend the Company's
dividend policy in any manner and at any time as it may deem necessary
or appropriate in the future. For these reasons, as well as others,
there can be no assurance that dividends in the future will be equal or
similar to the amount described above or that the Board will not decide
to suspend or discontinue the payment of cash dividends in the future.
Developments
On December 8, 2014, the Company and Ainsworth announced that they had
entered into an arrangement agreement under which the Company and
Ainsworth will merge to create a leading global wood products company
focused on OSB across North America, Europe and Asia. Under the terms
of the transaction, the Company has agreed to acquire all of the
outstanding common shares of Ainsworth in an all-share transaction in
which Ainsworth shareholders will receive 0.1321 of a share of the
Company for each Ainsworth share pursuant to a plan of arrangement
under the British ColumbiaBusiness Corporations Act.
On January 27, 2015, the transaction was approved by the required
majorities of shareholders of each of Ainsworth and the Company. The
transaction remains subject to customary conditions to closing,
including court approval of the plan of arrangement. In addition, while
the transaction is not reportable under the U.S. Hart-Scott-Rodino Antitrust Improvement Act of 1976 (the HSR Act) or the Canadian Competition Act, the U.S. Department of Justice (DOJ) has requested information about
the transaction and the companies, as it is entitled to do. The Company
and Ainsworth are providing the DOJ with the information it has
requested and are working proactively with the DOJ to ensure an
expedited review process. Subject to approval of the plan of
arrangement by the Supreme Court of British Columbia and the
satisfaction or waiver of all closing conditions, the transaction is
expected to close by the end of the first quarter of 2015. Further
information on the transaction and its expected effects on the Company
can be found in the joint management information circular dated as of
December 18, 2014.
Brookfield and its affiliated entities, which control approximately 52%
and 55% of the outstanding common shares of the Company and Ainsworth,
respectively, will control approximately 53% of the outstanding common
shares of the combined company upon closing. Based on the number of
Ainsworth common shares outstanding as at December 8, 2014 (the date of
the arrangement agreement), approximately 31.8 million Norbord common
shares will be issued to Ainsworth shareholders on closing.
Additional Information
Norbord's year-end 2014 letter to shareholders, news release,
management's discussion and analysis, annual consolidated audited
financial statements and notes to the financial statements have been
filed on SEDAR (www.sedar.com) and are available in the investor section of the Company's website at www.norbord.com. Shareholders are encouraged to read this material.
Conference Call
Norbord will hold a conference call for analysts and institutional
investors on Wednesday, January 28, 2015 at 11:00 a.m. ET. The call
will be broadcast live over the Internet via www.norbord.com and www.newswire.ca. A replay number will be available approximately one hour after
completion of the call and will be accessible until February 27, 2015
by dialing 1-888-203-1112 or 647-436-0148. The passcode is 8883760.
Audio playback and a written transcript will be available on the
Norbord website.
Norbord Profile
Norbord Inc. is an international producer of wood-based panels with
assets of more than $1 billion, employing approximately 1,900 people at
13 plant locations in the United States, Europe and Canada. Norbord is
one of the world's largest producers of OSB. In addition to OSB,
Norbord manufactures particleboard, MDF and related value-added
products. Norbord is a publicly traded company listed on the Toronto
Stock Exchange under the symbol NBD.
This news release contains forward-looking statements, as defined in
applicable legislation, including statements related to our strategy,
projects, plans, future financial or operating performance and other
statements that express management's expectations or estimates of
future performance. Often, but not always, words such as "expect,"
"believe," "forecast," "likely," "support," "target," "consider,"
"continue," "suggest," "intend," "should," "appear," "would," "will,"
"will not," "plan," "can," "may," and other expressions which are
predictions of or indicate future events, trends or prospects and which
do not relate to historical matters identify forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Norbord to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Although Norbord believes it has a reasonable basis for making these
forward-looking statements, readers are cautioned not to place undue
reliance on such forward-looking information. By its nature,
forward-looking information involves numerous assumptions, inherent
risks and uncertainties, both general and specific, which contribute to
the possibility that the predictions, forecasts and other
forward-looking statements will not occur. Factors that could cause
actual results to differ materially from those contemplated or implied
by forward-looking statements include: general economic conditions;
risks inherent with product concentration; effects of competition and
product pricing pressures; risks inherent with customer dependence;
effects of variations in the price and availability of manufacturing
inputs; risks inherent with a capital intensive industry; the timing
for completion and the outcome of the U.S. Department of Justice's
review; the time necessary to satisfy the conditions to closing of the
pending Ainsworth transaction; and other risks and factors described
from time to time in filings with Canadian securities regulatory
authorities.
Except as required by applicable laws, Norbord does not undertake to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, or to publicly update or
revise the above list of factors affecting this information. See the
"Caution Regarding Forward-Looking Information" statement in the March
3, 2014 Annual Information Form and the cautionary statement contained
in the "Forward-Looking Statements" section of the 2014 Management's
Discussion and Analysis dated January 27, 2015.
Norbord defines adjusted EBITDA as earnings before finance costs, income
taxes, depreciation and other unusual or non-recurring items. Adjusted
EBITDA is a non-International Financial Reporting Standards (IFRS)
financial measure, does not have any standardized meaning prescribed by
IFRS and is therefore unlikely to be comparable to similar measures
presented by other companies. See "Non-IFRS Financial Measures" in
Norbord's 2014 Management Discussion and Analysis dated January 27,
2015 for a quantitative reconciliation of adjusted EBITDA to earnings
(the most directly comparable IFRS measure).
January 28, 2015
To Our Shareholders,
Our 2014 financial performance did not live up to our expectations.
Still, I am excited by our strategic and operational accomplishments in
the past year. We negotiated a transformational, growth-oriented merger
with Ainsworth, a west coast-based OSB producer with four high-quality,
competitive mills. We also made significant continuous improvements in
our own mills' cost structure. Our efforts this year have set us up
well to capture the benefits of the improving market environment we see
ahead.
In 2014, Norbord delivered earnings of $0.48 per diluted share on
adjusted EBITDA of $90 million. US housing continues to recover,
although at a more gradual pace than most experts originally
anticipated. This put pressure on North American panel demand and OSB
prices, which in turn impacted our financial results. While this is
disappointing, we have continued to see double-digit year-over-year
growth in our sales to home improvement centre and industrial
customers, which has partially offset the slower-than-expected housing
recovery.
We made considerable progress this year improving the efficiency of our
operations. Six of our mills set annual production records in 2014,
including all of our European panel mills. Our operations also
delivered $24 million of Margin Improvement Program, or MIP, gains this
year, reflecting the ongoing company-wide effort to reduce
manufacturing costs and increase productivity. Our strong operational
performance demonstrates that we are "in control of our controllables"
at Norbord. We will continue to push hard for MIP each and every year
as it remains our primary tool to offset input cost inflation.
I have always believed that safety goes hand in hand with operating
performance. Our safety record continued to improve in 2014 with a
best-ever Occupational Safety and Health Administration (OSHA)
recordable incident rate of 0.69. Four mills - Genk, Inverness, South
Molton and Nacogdoches - completed the year injury-free. In addition,
Norbord received the 2013 APA - The Engineered Wood Association award
for being the safest company in our industry. I want to thank all our
employees for their commitment to continually raising the bar on safety
performance.
Margin improvements were complemented by a number of investments made
over the past two years that are delivering tangible results. Last
year, we completely rebuilt the wood-handling end of our Joanna, South
Carolina plant to debottleneck the continuous press and allow us to run
at higher line speeds. We had a unique opportunity at this mill to make
a step change in capacity that positions us well to serve the growing
mid-Atlantic region. We also implemented fines screening technology at
four more mills, which positively impacts our manufacturing costs by
lowering our wood and resin use.
The Ainsworth Merger
In addition to our operational achievements, the big story of the year
is our pending merger with Ainsworth. This transaction adds a new
dimension to our growth story and will make us one of the largest and
lowest-cost OSB producers in the world. Combining our two companies
brings together Norbord's manufacturing cost leadership with
Ainsworth's product development innovation. It will also allow us to
better serve customers across North America and gain access to growing
Asian markets.
We are pleased that shareholders have recently voted overwhelmingly in
support of the merger. We continue to work proactively with the
regulatory authorities to expedite their review of this combination and
expect to be able to close the transaction at the end of the first
quarter.
What to Expect in 2015
Market Outlook
We remain optimistic about the unfolding housing recoveries in all our
core markets in North America and Europe.
US housing economists forecast 2015 starts in the 1.15 million range, a
15% improvement over last year. This reflects expectations that new
home construction will grow at a more gradual pace than in previous
cyclical recoveries as builders struggle with labour and lot
availability. The US economy appears poised for more impressive growth
this year which should spur household formations, the biggest driver of
new home demand. Customer feedback suggests the North American OSB
supply chain is lean, which should support improving demand in the near
term as we head into the spring building season. The recent plunge in
oil prices is also providing some cost relief as the resins which
account for one-quarter of our cash manufacturing costs are becoming
less expensive each month.
In our European panel business, we also see positive trends in spite of
the re-emergence of negative headlines in parts of the Eurozone. Our
core markets (the UK, Germany and BeNeLux) all saw improving OSB demand
in 2014. OSB represents less than 40% of structural panel demand in
Europe today and the rate of substitution has recently accelerated. The
long-term market fundamentals for OSB in Europe remain favourable, and
we have advanced our plans to expand capacity at both our Belgian and
Scottish OSB mills to keep pace with this growing demand.
Capital Allocation
After two years of significant capital re-investment, we are pulling
back our planned 2015 capital expenditures to about $50 million as our
management team focuses on the integration with Ainsworth. Our capital
program primarily involves the ongoing roll out of fines screening
technology as well as several productivity improvement investments, all
as part of our multi-year strategy to debottleneck and lower
manufacturing costs across our mills. The rebuild of the Huguley,
Alabama mill also continues, but at a slow pace given the more gradual
recovery in US housing.
In today's press release, you will see that the Board has set the
current dividend payout to CAD $0.25 per share for the first quarter of
2015. Our variable dividend policy allows Norbord to balance compelling
investment opportunities in our business with our continuing commitment
to returning cash to shareholders. It is the Board's intention to
maintain this policy following the close of the Ainsworth merger.
Moving Forward as a Global OSB Leader
Heading into 2015, our mills are lower cost and more productive - and we
expect our ongoing progress in these areas to pay off as market
conditions improve.
Our top priority this year will be to complete the merger with
Ainsworth. We have great respect for Ainsworth, its people and its
mills and are eager to begin working together with our new colleagues
to quickly and seamlessly integrate the two businesses and deliver
substantial synergies for all shareholders.
We look forward to the coming year as one of continued progress and
opportunity for our shareholders, customers and employees. On behalf of
Norbord, I thank you for your vote of confidence as we build the
world's leading OSB company.
Peter Wijnbergen
President & CEO
This letter includes forward-looking statements, as defined by
applicable securities legislation including statements related to our
strategy, projects, plans, future financial or operating performance
and other statements that express management's expectations or
estimates of future performance. Often, but not always, forward-looking
statements can be identified by the use of words such as "expect,"
"suggest," "support," "believe," "should," "potential," "likely,"
"continue," "forecast," "plan," "indicate," "consider," "future," or
variations of such words and phrases or statements that certain actions
"may," "could," "must," "would," "might," or "will" be undertaken,
occur or be achieved. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Norbord to be materially
different from any future results, performance or achievement expressed
or implied by the forward-looking statements. See the cautionary
language in the Forward-Looking Statements section of the 2014
Management's Discussion and Analysis dated January 27, 2015.
Consolidated Balance Sheets
|
|
|
|
|
|
|
(US $ millions)
|
| Dec 31, 2014 |
|
|
Dec 31, 2013
|
Assets |
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
| $ | 25 |
|
$
|
193
|
|
Accounts receivable
|
|
| 121 |
|
|
130
|
|
Tax receivable
|
| | 4 |
|
|
11
|
|
Inventory
|
|
| 125 |
|
|
120
|
|
|
| 275 |
|
|
454
|
Non-current assets
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
| 800 |
|
|
794
|
|
Deferred income tax assets
|
|
| 29 |
|
|
14
|
|
|
| 829 |
|
|
808
|
|
| $ | 1,104 |
|
$
|
1,262
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
| $ | 181 |
|
$
|
206
|
Non-current liabilities
|
|
|
|
|
|
|
|
Long-term debt
|
|
| 434 |
|
|
433
|
|
Other liabilities
|
|
| 31 |
|
|
27
|
|
Deferred income tax liabilities
|
|
| 99 |
|
|
120
|
|
|
| 564 |
|
|
580
|
|
Shareholders' equity
|
|
| 359 |
|
|
476
|
|
| $ | 1,104 |
|
$
|
1,262
|
Consolidated Statements of Earnings
|
|
|
|
Years ended December 31 (US $ millions, except per share information)
|
| 2014 |
|
2013
|
Sales
|
| $ | 1,198 |
|
$
|
1,343
|
Cost of sales
|
|
| (1,097) |
|
|
(1,042)
|
General and administrative expenses
|
|
| (11) |
|
|
(14)
|
Earnings before finance costs, costs related to Ainsworth combination,
costs on early debt extinguishment, income tax and depreciation
|
|
| 90 |
|
|
287
|
|
|
|
|
|
|
|
Finance costs
|
|
| (30) |
|
|
(37)
|
Costs related to Ainsworth combination
|
|
| (5) |
|
|
-
|
Costs on early debt extinguishment
|
|
| - |
|
|
(20)
|
Earnings before income tax and depreciation
|
|
| 55 |
|
|
230
|
Depreciation
|
|
| (60) |
|
|
(56)
|
Income tax recovery (expense)
|
|
| 31 |
|
|
(25)
|
Earnings
|
| $ | 26 |
|
$
|
149
|
Earnings per common share
|
|
|
|
|
|
|
Basic
|
| $ | 0.49 |
|
$
|
2.92
|
Diluted
|
|
| 0.48 |
|
|
2.79
|
Consolidated Statements of Comprehensive (Loss) Income
|
|
|
|
|
Years ended December 31 (US $ millions)
|
| 2014 |
|
2013
|
Earnings
|
| $ | 26 |
|
$
|
149
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
Item that will not be reclassified to earnings:
|
|
|
|
|
|
|
|
|
Actuarial (loss) gain on post-employment obligations
|
|
| (6) |
|
|
15
|
|
Item that may be reclassified subsequently to earnings:
|
|
|
|
|
|
|
|
|
Foreign currency translation (loss) gain on foreign operations
|
|
| (23) |
|
|
4
|
Other comprehensive (loss) income, net of tax
|
|
| (29) |
|
|
19
|
Comprehensive (loss) income
|
| $ | (3) |
|
$
|
168
|
Consolidated Statements of Changes in Shareholders' Equity
|
|
|
|
|
Years ended December 31 (US $ millions)
|
| 2014 |
|
2013
|
Share capital |
|
|
|
|
|
|
Balance, beginning of year
|
| $ | 661 |
|
$
|
346
|
Issue of common shares
|
|
| 1 |
|
|
315
|
Balance, end of year
|
| $ | 662 |
|
$
|
661
|
Contributed surplus |
|
|
|
|
|
|
Balance, beginning of year
|
| $ | 6 |
|
$
|
44
|
Stock-based compensation
|
|
| 1 |
|
|
1
|
Warrants and stock options exercised
|
|
| - |
|
|
(39)
|
Balance, end of year
|
| $ | 7 |
|
$
|
6
|
Retained earnings |
|
|
|
|
|
|
Balance, beginning of year
|
| $ |
(190)
|
|
$
|
(11)
|
Transfer to accumulated other comprehensive income
|
|
| - |
|
|
26
|
Adjusted balance, beginning of year
|
|
| (190) |
|
|
15
|
Earnings
|
|
| 26 |
|
|
149
|
Common share dividends
|
|
| (116) |
|
|
(91)
|
Warrants exercised
|
|
| - |
|
|
(263)
|
Balance, end of yeari |
| $ | (280) |
|
$
|
(190)
|
Accumulated other comprehensive (loss) income |
|
|
|
|
|
|
Balance, beginning of year
|
| $ | (1) |
|
$
|
6
|
Transfer from retained earnings
|
|
| - |
|
|
(26)
|
Adjusted balance, beginning of year
|
|
| (1) |
|
|
(20)
|
Other comprehensive (loss) income
|
|
| (29) |
|
|
19
|
Balance, end of year
|
| $ | (30) |
|
$
|
(1)
|
Shareholders' equity
|
| $ | 359 |
|
$
|
476
|
iRetained earnings comprised of: |
|
|
|
|
|
|
Deficit arising on cashless exercise of warrants in 2013
|
| $ | (263) |
|
$
|
(263)
|
All other retained earnings
|
|
| (17) |
|
|
73
|
Consolidated Statements of Cash Flows
|
|
|
|
|
Years ended December 31 (US $ millions)
|
| 2014 |
|
2013
|
CASH PROVIDED BY (USED FOR): |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Earnings
|
| $ | 26 |
|
$
|
149
|
Items not affecting cash:
|
|
|
|
|
|
|
|
Depreciation
|
|
| 60 |
|
|
56
|
|
Deferred income tax
|
|
| (35) |
|
|
26
|
Other items |
|
| (5) |
|
|
19
|
|
|
| 46 |
|
|
250
|
Net change in non-cash operating working capital balances
|
|
| (24) |
|
|
5
|
Net change in tax receivable
|
|
| 7 |
|
|
(11)
|
|
|
| 29 |
|
|
244
|
Investing activities |
|
|
|
|
|
|
Investment in property, plant and equipment
|
|
| (81) |
|
|
(79)
|
Financing activities |
|
|
|
|
|
Common share dividends paid
|
|
| (115) |
|
|
(91)
|
Debt issue costs
|
|
| (1) |
|
|
(5)
|
Repayment of debt
|
|
| - |
|
|
(240)
|
Issue of debt
|
|
| - |
|
|
240
|
Costs on early debt extinguishment
|
|
| - |
|
|
(17)
|
Issue of common shares, net
|
|
| - |
|
|
13
|
|
|
| (116) |
|
|
(100)
|
Cash and cash equivalents |
|
|
|
|
|
|
(Decrease) increase during the year
|
|
| (168) |
|
|
65
|
Balance, beginning of year
|
|
| 193 |
|
|
128
|
Balance, end of year
|
| $ | 25 |
|
$
|
193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Norbord Inc.
<p> Heather Colpitts<br/> Manager, Corporate Affairs<br/> Tel. (416) 365-0705<br/> <i><a href="mailto:info@norbord.com">info@norbord.com</a></i> </p>