KINGSEY FALLS, Que. – Cascades reported its best quarterly results in more than three years as its net income soared to $11 million from $2 million a year ago on a 10 per cent increase in revenues.
The manufacturer of green packaging and tissue paper products said it earned 12 cents per share for the period ended Sept. 30, compared to two cents per share or $2 million a year ago.
Adjusting for one-time items, net income was $7 million or seven cents per share, up from $4 million or five cents per share in the 2012 quarter.
It took a $4 million hit from flooding, maintenance expenses and unplanned downtime at two mills in Quebec and Ontario.
Pre-tax adjusted operating income (EBITDA) grew 23 per cent to $96 million as it benefited from improved productivity, higher volumes, increased prices and the positive effects of Ontario plant closures last year that offset higher raw material costs.
Revenues were $995 million, up from $906 million in the prior year.
Cascades (TSX:CAS) beat analyst forecasts for EBITDA but fell short in terms of adjusted income. The company was expected to earned $92 million in adjusted EBITDA, 13 cents per share in adjusted net income and $987 million in revenues, according to analysts polled by Thomson Reuters.
CEO Mario Plourde said the results confirm the company’s forecasts of improved profitability in the second half of the year. It expects the fourth quarter will be better than last year as the volatility of recycled fibre costs should remain “manageable.”
Cascades will continue to ramp-up its Greenpac mill in Niagara Falls, N.Y., which started production in July. It also started work on adding a second tissue paper machine at its mill in Oregon.
On the Toronto Stock Exchange, Cascades shares gained 18 cents or three per cent at $6 in Thursday morning trading.