US $
- Declared special cash dividend of $1.00 per share
- Announced $50 million in
additional lumber projects
- Reduced debt by $180 million
in Q2
MONTRÉAL, June 10, 2021
/PRNewswire/ - Resolute Forest Products Inc.
(NYSE: RFP) (TSX: RFP) today declared a special cash
dividend of $1.00 per share of common
stock, payable on July 7 for holders of record at the close of
business on June 28. The company also announced additional
capital investments of $50 million in its wood products
operations to support its continued growth, and it confirmed the
repayment of all amounts outstanding under its revolving and term
credit facilities, reducing debt by $180 million in the second
quarter.
"The cash generated with our lumber platform in these
strong lumber markets provides the opportunity to share benefits
directly with shareholders," said Remi
G. Lalonde, president and chief executive officer. "We're
also enhancing long-term value by improving our company
fundamentals with investments in high-return and quick payback
lumber projects in three key regions for Resolute: the Abitibi in
Quebec, Northwestern Ontario and the Southeast U.S.
What's more, we've removed a material amount of debt from the
balance sheet with the further $180 million repayment in Q2,
leaving as our only remaining debt the $300
million of unsecured 4.875% senior notes due 2026, and our
liquidity stands at around $850
million. As we improve the competitiveness of the strongest
parts of our business, today's announcement will benefit
shareholders, employees and a wide range of community and business
partners. As demonstrated with this announcement, our intention is
to maintain a balanced approach to capital allocation, using our
free cash flow to generate value for shareholders and build a
stronger company while driving economic activity in the communities
where we operate."
The additional $50 million in wood
products investments include:
- $22 million to modernize
equipment at the Senneterre
(Quebec) sawmill, which will
enhance overall efficiency and productivity of the Abitibi regional
operations;
- $13 million at the Thunder Bay / Fort William First Nation
(Ontario) sawmill to increase
capacity by up to 40 million board feet with new equipment and
modifications to the fiber flow; and
- $15 million at the Glenwood (Arkansas) and Cross
City (Florida) sawmills to
support fiber optimization and overall efficiency. The Cross City investment will also increase
capacity by up to 20 million board feet.
Each of these projects will serve to generate additional value
from Resolute's wood products segment across market cycles. The
improvements at the U.S. sawmills build on the previously announced
investments associated with the restart of the El Dorado (Arkansas) sawmill. The company anticipates
completing all the projects by the end of the third quarter of
2022. Accordingly, it is raising its 2021 capital investments
guidance from $100 million to $125 million.
Cautionary Statements Regarding Forward-Looking
Information
Statements in this press release that are not reported
financial results or other historical information of Resolute
Forest Products Inc. (with its subsidiaries, "we," "our," "us" or
the "company") are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. They
include, for example, statements relating to our capital
investments and their expected outcomes, to the impact of the novel
coronavirus (or, "COVID-19") pandemic and resulting economic
conditions on our business, results of operations and market price
of our securities, and to our: efforts and initiatives to reduce
costs, increase revenues, and improve profitability; business and
operating outlook; future pension obligations; assessment of market
conditions; growth strategies and prospects, and the growth
potential of the company and the industry in which we operate;
liquidity; future cash flows, including as a result of the changes
to our pension funding obligations; estimated capital expenditures;
and strategies for achieving our goals generally. Forward-looking
statements may be identified by the use of forward-looking
terminology such as the words "should," "would," "could," "will,"
"may," "expect," "believe," "see," "anticipate," "continue,"
"enhance," "generate," "improve," "allow," "increase," "maintain,"
"provide," "trend," "benefit," "seek," "evolve," "vision,"
"commit," "develop," "project," "progress," "build," "pursue,"
"plan," "grow," "reduce," "accelerate," "drive," "look" and other
terms with similar meaning indicating possible future events or
potential impact on our business or our shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs, and expectations, all of which involve a
number of business risks and uncertainties that could cause actual
results to differ materially. The potential risks and uncertainties
that could cause our actual future financial condition, results of
operations, performance and targets to differ materially from those
expressed or implied in this press release include, but are
not limited to, the impact of: the COVID-19 pandemic on our
business and resulting economic conditions; developments in
non-print media, including changes in consumer habits, and the
effectiveness of our responses to these developments; intense
competition in the forest products industry; any inability to offer
products certified to globally recognized forestry management and
chain of custody standards; any inability to successfully implement
our strategies to increase our earnings power; the possible failure
to successfully integrate acquired businesses with ours or to
realize the anticipated benefits of acquisitions, such as our entry
into wood manufacturing in the U.S., and tissue production and
sales, or divestitures or other strategic transactions or projects,
including loss of synergies following business divestitures;
uncertainty or changes in political or economic conditions in the
U.S., Canada or other countries in
which we sell our products, including the effects of pandemics;
global economic conditions; the highly cyclical nature of the
forest products industry; any difficulties in obtaining timber or
wood fiber at favorable prices, or at all; changes in the cost of
purchased energy and other raw materials; physical, financial and
regulatory risks associated with global, regional, and local
weather conditions, and climate change; any disruption in
operations or increased labor costs due to labor disputes or
occupational health and safety issues; difficulties in our employee
relations or in employee attraction or retention; disruptions to
our supply chain, operations, or the delivery of our products,
including due to public health epidemics; disruptions to our
information technology systems including cybersecurity and privacy
incidents; risks related to the operation and transition of legacy
system applications; negative publicity, even if unjustified;
currency fluctuations; any increase in the level of required
contributions to our pension plans, including as a result of any
increase in the amount by which they are underfunded; our ability
to maintain adequate capital resources to provide for all of our
substantial capital requirements; the terms of our outstanding
indebtedness, which could restrict our current and future
operations; changes relating to the London Interbank Offered Rate,
which could impact our borrowings under our credit facilities;
losses that are not covered by insurance; any shutdown of machines
or facilities, restructuring of operations or sale of assets
resulting in any additional closure costs and long-lived asset or
goodwill impairment or accelerated depreciation charges; any need
to record additional valuation allowances against our recorded
deferred income tax assets; our exports from one country to another
country becoming or remaining subject to duties, cash deposit
requirements, border taxes, quotas, or other trade remedies or
restrictions; countervailing and anti-dumping duties on imports to
the U.S. of the vast majority of our softwood lumber products
produced at our Canadian sawmills; any failure to comply with laws
or regulations generally; any additional environmental or health
and safety liabilities; any violation of trade laws, export
controls, or other laws relating to our international sales and
operations; adverse outcomes of legal proceedings, claims and
governmental inquiries, investigations, and other disputes in which
we are involved; the actions of holders of a significant percentage
of our common stock; and the potential risks and uncertainties set
forth under Part I, Item 1A, "Risk Factors," of our annual report
on Form 10-K for the year ended December 31,
2020, filed with the U.S. Securities and Exchange Commission
(or, the "SEC") on March 1,
2021, which have been heightened by the COVID-19 pandemic,
including related governmental responses and economic impacts,
market disruptions and resulting changes in consumer habits.
All forward-looking statements in this press release referred to
above are expressly qualified by the cautionary statements
contained or referred above and in the company's other filings with
the SEC and the Canadian securities regulatory authorities. The
company disclaims any obligation to publicly update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
market pulp, tissue, wood products and papers, which are marketed
in over 50 countries. The company owns or operates some 40
facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified
100% of its managed woodlands to internationally recognized
sustainable forest management standards. The shares of Resolute
Forest Products trade under the stock symbol RFP on both the New
York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global
recognition for its leadership in corporate social responsibility
and sustainable development, as well as for its business practices.
Visit www.resolutefp.com for more information.
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SOURCE Resolute Forest Products Inc.