MISSISSAUGA, ONTARIO -- (Marketwired) -- 03/09/17 -- This document corrects and replaces the press release that was sent today at 7:00 am ET. Changes were made to the Segmented Adjusted EBITDA table for the fourth quarter 2016 results. These changes have no impact on overall results for the fourth quarter or full year.
KP Tissue Inc. (KPT) (TSX: KPT) reports the Q4 and full year 2016 financial and operational results of KPT and Kruger Products L.P. (KPLP). Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, and White Swan®) and the Away-From-Home market, and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 16.1% interest in KPLP.
KPLP Q4 2016 Business and Financial Highlights
-- Revenue increased by 13.0% to $339.6 million in Q4 2016 compared to Q4
2015
-- Adjusted EBITDA was $42.9 million in Q4 2016 compared to $30.3 million
in Q4 2015, up 41.6%
-- Kruger Products continues to be the market share leader in Canada
-- Declared a quarterly dividend of $0.18 per share to be paid on April 17,
2017
KPLP Full Year 2016 Business and Financial Highlights
-- Revenue increased by 7.8% to $1,227.9 million in 2016 compared to
$1,138.9 million in 2015
-- Adjusted EBITDA was $152.5 million in 2016, up from $126.4 million in
2015, a 20.6% increase
"We are extremely pleased with our results for Fiscal 2016. The record Revenue and Adjusted EBITDA performance was primarily due to higher sales volume, improved pricing and strong contribution from TAD products" said Mario Gosselin, CEO of KP Tissue and KPLP.
"We continue to be #1 in overall tissue market share in Canada, with share gains in our market leading position in the bathroom tissue category, while remaining the uncontested market leader in the facial tissue category and holding a strong #2 position in the paper towels category. In the U.S., we continue to leverage our TAD product manufacturing capacity to take advantage of growth opportunities in the U.S. premium private label market.
"In the past two years, our capital program has increased significantly, focused on projects related to capacity growth and cost reduction with quick paybacks, highlighted by our $55 million paper machine investment in Crabtree to reduce our overall paper costs. We are starting to see the benefits of these investments in our results, and expect a positive impact from capital projects on our costs going forward," concluded Mr. Gosselin.
Q1 2017 Outlook
For the first quarter of 2017, Adjusted EBITDA is expected to increase over Q1 2016, while being seasonally lower than the fourth quarter of 2016 due primarily to twelve fewer sales days and higher advertising expenses.
KPLP Q4 2016 Financial Results
Revenue in Q4 2016 was $339.6 million, compared to $300.6 million in Q4 2015, an increase of $39.0 million or 13.0%. The increase in revenue was primarily due to higher sales volumes and a selling price increase in Canada.
Cost of sales in Q4 2016 increased to $284.2 million, compared to $259.9 million in Q4 2015, primarily due to higher sales volumes, somewhat offset by cost reduction initiatives and the impact of capital projects. As a percentage of revenue, cost of sales were 83.7% in Q4 2016 compared to 86.5% in Q4 2015.
Selling, general and administrative (SG&A) expenses in Q4 2016 were $26.4 million, compared to $23.5 million in Q4 2015. The increase was primarily due to higher selling expenses related to higher sales volumes and higher advertising expenses. As a percentage of revenue, SG&A expenses were 7.8% in Q4 2016, consistent with Q4 2015.
Adjusted EBITDA in Q4 2016 was $42.9 million, compared to $30.3 million in Q4 2015, primarily due to higher sales volume, improved pricing and mix of products sold, and the impact of cost reduction initiatives and capital projects, partially offset by higher SG&A costs. Adjusted EBITDA attributable to the sale of TAD products was $13.8 million in Q4 2016 compared to $13.2 million in Q4 2015.
Net loss in Q4 2016 was $4.5 million, compared to $0.5 million in Q4 2015, primarily due to a change in the amortized cost of the Partnership units liability of $23.2 million, and higher depreciation and interest expense of $1.2 million and $0.7 million, respectively. These increases were partially offset by higher Adjusted EBITDA of $12.6 million, a decrease in tax expense of $4.2 million, and a gain on sale of non-financial assets of $2.5 million.
Total liquidity, representing cash and cash equivalents and availability under the credit line within covenant limitations, was $103.5 million as of December 31, 2016, compared to $90.6 million as of September 25, 2016.
KPLP 2016 Financial Results
Revenue was $1,227.9 million in Fiscal 2016, compared to $1,138.9 million in Fiscal 2015, an increase of $89.0 million or 7.8%. The increase in revenue was primarily due to additional sales volume across all regions as well as a selling price increase in Canada, and the favourable impact of foreign exchange on U.S. dollar sales.
Adjusted EBITDA was $152.5 million in Fiscal 2016, compared to $126.4 million in Fiscal 2015. The increase was primarily due to higher sales volume, improved pricing and mix of products sold, and the impact of cost reduction initiatives and capital projects. These were partially offset by higher SG&A costs and the net negative impact of foreign exchange. Adjusted EBITDA attributable to the sale of TAD products was $49.0 million in Fiscal 2016 compared to $45.3 million in Fiscal 2015.
Net income was $35.5 million in Fiscal 2016, compared to $1.5 million in Fiscal 2015. The increase in net income was primarily due to higher Adjusted EBITDA of $26.1 million, a decrease in interest expense of $14.2 million, a change in the foreign exchange gain/loss of $7.2 million, a decrease in tax expense of $3.8 million, and no pension revaluation related to past service costs compared to $3.4 million in Fiscal 2015. These decreases were partially offset by a change in the amortized cost of the Partnership units liability of $19.4 million, and higher depreciation expense of $5.9 million.
KPT Q4 2016 Financial Results
KPT incurred a net loss of $0.4 million in Q4 2016. Included in the net loss was $0.7 million representing KPT's share of KPLP's loss. The loss was increased by the net of depreciation expense of $1.5 million related to adjustments to carrying amounts on acquisition, partially offset by an income tax recovery of $1.8 million.
KPT 2016 Financial Results
KPT incurred a net loss of $1.7 million in 2016. Included in the net loss was $5.8 million representing KPT's share of KPLP's income. The income was reduced by depreciation expense of $5.9 million related to adjustments to carrying amounts on acquisition and income tax expense of $1.8 million
Dividends on Common Shares
The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on April 17, 2017 to shareholders of record at the close of business on March 31, 2017.
Additional Information
For additional information please refer to Management's Discussion and Analysis (MD&A) of KPT and KPLP for the fourth quarter and year ended December 31, 2016 available on SEDAR at www.sedar.com or our website at www.kptissueinc.com.
Fourth Quarter Results Conference Call Information
KPT will hold its fourth quarter conference call on Thursday, March 9, 2017 at 8:30 a.m. Eastern Time.
Via telephone: 1-877-223-4471 or 647-788-4922
Via the internet at: www.kptissueinc.com
Presentation material referenced during the conference call will be available at www.kptissueinc.com.
A rebroadcast of the conference call will be available until midnight, April 8, 2017 by dialing 800-585-8367 or 416-621-4642 and entering passcode 59685751.
The replay of the webcast will remain available on the website until midnight, April 8, 2017.
About KP Tissue Inc. (KPT)
KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 16.1% interest in KPLP. For more information visit www.kptissueinc.com.
About Kruger Products L.P. (KPLP)
KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees and operates eight production facilities in North America, including five FSC® CoC-certified plants (FSC® C104904), four of which are located in Canada and one in the U.S. For more information visit www.krugerproducts.ca.
Non-IFRS Measures
This press release uses certain non-IFRS financial measures which KPLP believes provide useful information to management of KPLP and the readers of the financial information in measuring the financial performance and financial condition of KPLP. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. An example of such a measure is Adjusted EBITDA. Beginning with Q4 2015 in accordance with Canadian Securities Administrators Staff Notice 52-306 (Revised), we reference Adjusted EBITDA as a non-IFRS financial measure. This term replaces the previously referenced non-IFRS financial measure EBITDA. Our definition of Adjusted EBITDA is unchanged from our former definition of EBITDA. Accordingly, this change in terminology has no impact on our reported financial results for prior periods. Adjusted EBITDA is not a measurement of operating performance computed in accordance with IFRS and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with IFRS. "Adjusted EBITDA" is calculated by KPLP as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) impairment (gain on sale) of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign exchange loss (gain), (viii) costs related to restructuring activities, (ix) changes in the amortized cost of the Partnership units liability, and (x) one-time costs due to pension revaluations related to past service. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the MD&A of KPT and KPLP for the fourth quarter ended December 31, 2016 available on SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements in this press release about KPT's and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT, including expectations and assumptions concerning the impact of the TAD Project on Adjusted EBITDA, the expectation of continued growth in sales of TAD products in the U.S., and stable interest rates. Although KPT believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.
The outlook provided in respect of Adjusted EBITDA for Q1 2017 is forward-looking information and is subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management's expectations, at the date of this press release, regarding KPLP's future financial performance. Readers are cautioned that this information may not be appropriate for other purposes.
Many factors could cause KPLP's actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from the Corporation's economic interest in KPLP) to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors - Risks Related to KPLP's Business" section of the KPT Annual Information Form dated March 9, 2017 available on SEDAR at www.sedar.com: Kruger Inc.'s influence over KPLP; KPLP's reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD Project; operational risks; Gatineau Plant land lease; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP's inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP's brands; KPLP's sales being less than anticipated; KPLP's failure to implement its business and operating strategies; KPLP's obligation to make regular capital expenditures; KPLP's entering into unsuccessful acquisitions; KPLP's dependence on key personnel; KPLP's inability to retain its existing customers or obtain new customers; KPLP's loss of key suppliers; KPLP's failure to adequately protect its intellectual property rights; KPLP's reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP's cash flow; KPLP's pension obligations are significant and can be materially higher than predicted if KPLP Management's underlying assumptions are incorrect; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and U.S. competitors; KPLP's inability to service all of its indebtedness; exposure to potential consumer product liability, restrictive covenants; interest rate and refinancing risk; information technology; cyber-security; insurance; internal controls and trade related risk.
Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
Kruger Products L.P.
Consolidated Statement of Financial Position
(thousands of Canadian dollars)
December 31, 2016 December 31, 2015
$ $
--------------------------------------
Assets
Current assets
Cash and cash equivalents 36,511 25,455
Trade and other receivables 123,095 108,720
Receivables from related parties 185 185
Current portion of advances to
partners 5,465 2,630
Inventories 179,543 184,985
Income tax recoverable 423 772
Prepaid expenses 7,286 8,429
--------------------------------------
352,508 331,176
Non-current assets
Advances to partners - 4,234
Property, plant & equipment 762,270 737,708
Other long-term assets 6,075 8,107
Goodwill 160,939 160,939
Intangible assets 15,270 15,853
Deferred income taxes 39,913 39,411
--------------------------------------
Total assets 1,336,975 1,297,428
--------------------------------------
--------------------------------------
Liabilities
Current liabilities
Bank indebtedness 9,007 -
Trade and other payables 201,477 180,329
Payables to related parties 3,606 3,775
Income tax payable 1,779 -
Distributions payable 10,148 9,871
Current portion of provisions 1,885 3,096
Current portion of long-term debt 8,859 10,183
--------------------------------------
236,761 207,254
Non-current liabilities
Long-term debt 415,379 425,859
Other long-term liabilities - 48
Provisions 6,487 6,180
Pensions 92,646 87,164
Post-retirement benefits 57,162 57,346
--------------------------------------
Liabilities to non-unitholders 808,435 783,851
Current portion of Partnership
units liability 8,611 2,630
Long-term portion of Partnership
units liability 137,296 122,546
--------------------------------------
Total Partnership units liability 145,907 125,176
--------------------------------------
Total liabilities 954,342 909,027
--------------------------------------
Equity
Partnership units 336,576 318,012
Deficit (42,792) (29,416)
Accumulated other comprehensive
income 88,849 99,805
--------------------------------------
Total equity 382,633 388,401
--------------------------------------
Total equity and liabilities 1,336,975 1,297,428
--------------------------------------
--------------------------------------
Kruger Products L.P.
Consolidated Statement of Comprehensive Income
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
$ $ $ $
----------------------------------------------------
Revenue 339,626 300,583 1,227,896 1,138,870
Expenses
Cost of sales 284,299 259,842 1,031,647 970,759
Selling, general and
administrative
expenses 26,480 23,452 92,763 87,978
Gain on sale of non-
financial assets (2,544) 12 (2,939) (1,119)
Restructuring costs,
net 134 989 552 2,824
----------------------------------------------------
Operating income 31,257 16,288 105,873 78,428
Interest expense 10,673 10,095 44,000 58,164
Other expense 23,061 561 22,754 11,331
----------------------------------------------------
Income (loss) before
income taxes (2,477) 5,632 39,119 8,933
Income taxes 2,017 6,157 3,629 7,439
----------------------------------------------------
Net income (loss) for
the period (4,494) (525) 35,490 1,494
----------------------------------------------------
Other comprehensive
income (loss)
Items that will not be
reclassified to net
income (loss):
Remeasurements of
pensions 55,495 11,217 (8,491) 7,094
Remeasurements of
post-retirement
benefits 4,613 (1,965) 94 (2,667)
Items that may be
subsequently
reclassified to net
income (loss):
Available-for-sale
investment - 513 (290) 207
Cumulative translation
adjustment 6,192 13,242 (10,666) 56,135
----------------------------------------------------
Total other
comprehensive income
(loss) for the period 66,300 23,007 (19,353) 60,769
----------------------------------------------------
Comprehensive income for
the period 61,806 22,482 16,137 62,263
----------------------------------------------------
----------------------------------------------------
Kruger Products L.P.
Consolidated Statement of Cash Flows
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
$ $ $ $
----------------------------------------------------
Cash flows from (used
in) operating
activities
Net income (loss) for
the period (4,494) (525) 35,490 1,494
Items not affecting cash
Depreciation 13,661 12,189 47,436 41,643
Amortization 270 318 1,146 881
Loss on sale of fixed
assets 142 450 139 734
Change in amortized
cost of Partnership
units liability 22,129 (1,010) 23,363 4,003
Gain on sale of
investment - - (324) -
Foreign exchange
(gain) loss 932 1,578 (285) 6,906
Interest expense 10,673 10,095 44,000 58,164
Pension and post
retirement benefits 2,597 2,685 10,402 14,146
Provisions 147 229 1,338 3,034
Income taxes 2,017 6,157 3,629 7,439
Gain on sale of non-
financial assets (2,544) 12 (2,939) (1,119)
----------------------------------------------------
Total items not
affecting cash 50,024 32,703 127,905 135,831
Net change in non-cash
working capital 11,857 (4,382) 1,386 (24,540)
Contributions to pension
and post-retirement
benefit plans (4,417) (11,553) (18,335) (23,084)
Provisions paid (815) (2,580) (2,267) (3,558)
Income tax payments (83) (557) (1,970) (2,107)
----------------------------------------------------
Net cash from operating
activities 52,072 13,106 142,209 84,036
----------------------------------------------------
Cash flows from (used
in) investing
activities
Purchases of property,
plant & equipment (22,794) (21,552) (81,460) (54,701)
Capitalized interest
paid (222) - (222) -
Proceeds on sale of
investment - - 1,439 -
Government assistance
received 1,191 - 2,400 -
Purchases of software (492) (722) (563) (2,682)
Proceeds on sale of
property, plant and
equipment 4,860 - 5,399 736
----------------------------------------------------
Net cash used in
investing activities (17,457) (22,274) (73,007) (56,647)
----------------------------------------------------
Cash flows from (used
in) financing
activities
Proceeds from long-term
debt 4,614 206,000 9,609 206,000
Repayment of long-term
debt (9,776) (179,976) (17,882) (184,856)
Payment of deferred
financing fees (34) (1,248) (745) (1,388)
Interest paid on long-
term debt (15,868) (22,603) (34,162) (44,978)
Distributions and
advances paid, net (5,979) (7,156) (22,862) (31,811)
Proceeds from issuing
Partnership units - - - 195
----------------------------------------------------
Net cash used in
financing activities (27,043) (4,983) (66,042) (56,838)
----------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents held
in foreign currency 408 1,059 (1,111) 3,116
----------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
period 7,980 (13,092) 2,049 (26,333)
Cash and cash
equivalents - Beginning
of period 19,524 38,547 25,455 51,788
----------------------------------------------------
Cash and cash
equivalents - End of
period 27,504 25,455 27,504 25,455
----------------------------------------------------
----------------------------------------------------
Kruger Products L.P.
Segment and Geographic Results
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
$ $ $ $
----------------------------------------------------
Segment Information
Segment Revenue
Consumer 277,543 240,583 986,881 897,959
AFH 59,549 54,799 227,062 220,320
Other 2,534 5,201 13,953 20,591
----------------------------------------------------
Total segment revenue 339,626 300,583 1,227,896 1,138,870
----------------------------------------------------
----------------------------------------------------
Segment Adjusted EBITDA
Consumer 41,934 30,726 146,367 122,483
AFH 987 621 5,217 5,407
Other (1) (1,094) 947 (1,505)
----------------------------------------------------
Total segment Adjusted
EBITDA 42,920 30,253 152,531 126,385
Reconciliation to Net
Income (Loss):
Depreciation and
amortization 13,931 12,507 48,582 42,524
Interest expense 10,673 10,095 44,000 58,164
Change in amortized cost
of Partnership units
liability 22,129 (1,010) 23,363 4,003
Loss on sale of fixed
assets 142 450 139 734
Pension revaluation -
past service cost - - - 3,416
Gain on sale of non-
financial assets (2,544) 12 (2,939) (1,119)
Restructuring costs 134 989 552 2,824
Foreign exchange (gain)
loss 932 1,578 (285) 6,906
----------------------------------------------------
Income (loss) before
income taxes (2,477) 5,632 39,119 8,933
Income taxes 2,017 6,157 3,629 7,439
----------------------------------------------------
Net income (loss) (4,494) (525) 35,490 1,494
----------------------------------------------------
----------------------------------------------------
Geographic Revenue
Canada 209,605 184,512 746,483 711,881
U.S. 115,767 103,384 429,627 389,154
Mexico 14,254 12,687 51,786 37,835
----------------------------------------------------
Total revenue 339,626 300,583 1,227,896 1,138,870
----------------------------------------------------
----------------------------------------------------
KP Tissue Inc.
Statement of Financial Position
(thousands of Canadian dollars)
December 31, 2016 December 31, 2015
$ $
--------------------------------------
Assets
Current assets
Distributions receivable 1,636 1,613
Receivable from Partnership 426 -
Income tax recoverable - 828
--------------------------------------
2,062 2,441
Non-current assets
Investment in associate 117,349 126,643
--------------------------------------
Total Assets 119,411 129,084
--------------------------------------
--------------------------------------
Liabilities
Current liabilities
Dividend payable 1,636 1,613
Payable to Partnership - 108
Current portion of advances from
Partnership 914 432
Income tax payable 884 -
--------------------------------------
3,434 2,153
Non-current liabilities
Advances from Partnership - 709
Deferred income taxes 893 1,007
--------------------------------------
Total liabilities 4,327 3,869
--------------------------------------
Equity
Common shares 13,176 11,577
Contributed surplus 144,819 144,819
Deficit (58,729) (49,291)
Accumulated other comprehensive
income 15,818 18,110
--------------------------------------
Total equity 115,084 125,215
--------------------------------------
Total liabilities and equity 119,411 129,084
--------------------------------------
--------------------------------------
KP Tissue Inc.
Statement of Comprehensive Income (Loss)
(thousands of Canadian dollars, except share and per share amounts)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
$ $ $ $
----------------------------------------------------
Equity loss (2,225) (1,516) (124) (5,480)
Dilution gain (loss) 49 (59) 191 70
Impairment in investment
in associate - (28,000) - (28,000)
----------------------------------------------------
Income (loss) before
income taxes (2,176) (29,575) 67 (33,410)
Income taxes (1,768) (1,796) 1,789 (2,066)
----------------------------------------------------
Net loss for the period (408) (27,779) (1,722) (31,344)
----------------------------------------------------
Other comprehensive
income (loss) net of
tax expense (recovery)
Items that will not be
reclassified to net
loss:
Remeasurements of
pensions 7,839 1,603 (1,195) 1,013
Remeasurements of
post-retirement
benefits 456 (196) 9 (267)
Items that may be
subsequently
reclassified to net
loss:
Available-for-sale
investment - 72 (41) 29
Cumulative translation
adjustment 1,244 2,376 (2,251) 10,223
----------------------------------------------------
Total other
comprehensive income
(loss) for the period 9,539 3,855 (3,478) 10,998
----------------------------------------------------
Comprehensive income
(loss) for the period 9,131 (23,924) (5,200) (20,346)
----------------------------------------------------
----------------------------------------------------
Basic loss per share (0.04) (3.12) (0.19) (3.52)
----------------------------------------------------
----------------------------------------------------
Weighted average number
of shares outstanding 9,084,494 8,952,820 9,037,833 8,910,948
----------------------------------------------------
----------------------------------------------------
KP Tissue Inc.
Statement of Cash Flows
(thousands of Canadian dollars)
13-week 13-week
period ended period ended Year ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
$ $ $ $
----------------------------------------------------
Cash flows from (used
in) operating
activities
Net loss for the period (408) (27,779) (1,722) (31,344)
Items not affecting cash
Equity loss 2,225 1,516 124 5,480
Dilution gain (loss) (49) 59 (191) (70)
Impairment in
investment in
associate - 28,000 - 28,000
Income taxes (1,768) (1,796) 1,789 (2,066)
----------------------------------------------------
Total items not
affecting cash 408 27,779 1,722 31,344
Tax payments - (307) (205) (1,712)
Tax Distribution
received - - - 571
Advances received - 307 205 1,141
----------------------------------------------------
Net cash from (used in)
operating activities - - - -
----------------------------------------------------
Cash flows from (used
in) investing activites
Investment in associate - - - (195)
Partnership unit
distributions received 1,180 1,205 4,908 5,217
----------------------------------------------------
Net cash from investing
activities 1,180 1,205 4,908 5,022
----------------------------------------------------
Cash flows from (used
in) financing
activities
Issuance of common
shares - - - 195
Dividends paid (1,180) (1,205) (4,908) (5,217)
----------------------------------------------------
Net cash used in
financing activities (1,180) (1,205) (4,908) (5,022)
----------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
period - - - -
Cash and cash
equivalents - Beginning
of period - - - -
----------------------------------------------------
Cash and cash
equivalents - End of
period - - - -
----------------------------------------------------
----------------------------------------------------
Contacts:
INFORMATION:
Francois Paroyan
General Counsel and Corporate Secretary
KP Tissue Inc.
905.812.6936
francois.paroyan@krugerproducts.ca
INVESTORS:
Mike Baldesarra
Director of Investor Relations
KP Tissue Inc.
905.812.6962
IR@KPTissueinc.com
