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Info
Provided by: Catalyst
Paper Corp.
Investor Relations: 604.247.4400
Market
Cap: 324.4
Million
Outstanding Shares: 381.7
Million |
"Despite industry conditions that
remained extremely challenging, The Company reduced costs
and improved sales in most product segments in their last
announced quarter (Q2 '08) to achieve positive cash flow and
stronger earnings before interest, taxation, depreciation
and amortization"
Overview:
Catalyst,
(T.CTL)
headquartered in Richmond, British Columbia, Canada
is the largest producer of specialty printing
papers and newsprint in Western North America and also
produces market kraft pulp and owns Western Canada's
largest paper recycling facility. With approximately
3,400 employees and roots extending back to the turn of
the last century, the Company
makes many of the quality
paper and pulp products used the world over.
The company's six mills have a combined annual
capacity of 2.8 million tonnes of production.
Investment Highlights:
- Largest producer of specialty
printing papers and newsprint in Western North
America.
- Only producer of lightweight coated paper in Western
North America.
- One of the largest producers of directory paper in
the world.
- Owner of the largest paper recycling facility in
Western Canada, and of a 100% recycled newsprint mill
in Arizona.
- The Company makes over 2 million
tonnes of paper per year, they also produce nearly 700
thousand tonnes of pulp and containerboard per year.
- Total sales ending December 31,
07 came in at $1.7 Billion with assets of $2.5
Billion.
- Despite an economic slowdown in
the U.S. leading to decreases in paper sales and
consumption as well as a strengthening Canadian dollar
which hurt the Company's bottom line, The Company's
three and six month losses ending June 30th, 08 were
lower than the previous year, excluding specific
items.
Profile:
Paper production is not the most
interesting topic to discuss, but an important one
nonetheless. Our next spotlight company is in the
business of producing and printing paper. Catalyst Paper
Corp. (T.CTL)
has yearly sales of $1.7 Billion, employs over 3,000 employees
and has it's corporate footprints dating back to the 1940's.
The Company has struggled the last few
years with a myriad of corporate problems, which is evident on
their stock price, which has slid from the $4 mark in early
2007 to it's recent trading price of just over $0.80.
The economic problems in the U.S. and a global slowdown is
also hurting the Company's bottom line. North American
newsprint demand declined 11.0% in Q2 compared to the previous
year, as companies cut back print advertising during these
uncertain times.
With all the negative comments
surrounding this Company, investors would be hard pressed to
understand why AllPennyStocks.com is now highlighting this
Company. First off, this company is the largest producer
of specialty printing papers in North America. With such
market domination and few large competitors, when the U.S.
economy picks up, the Company's previous customers will most
likely resume their previous printing numbers.
The Company is changing with the times,
by owning one of the largest paper recycling facility
in Western Canada, and by also being the
owner of a 100% recycled newsprint mill in Arizona.
Their eye for the environment also benefits them financially.
The Company's 100% recycled newsprint mill in Snowflake,
Arizona has an increasing
output of lighter basis weight grades. Such papers require
fewer inputs to produce; provide more surface area per tonne;
reduce transportation, handling and storage requirements; and
provide operating efficiencies in the pressroom.
Since 2002, company losses have been
reducing and find themselves near their breakeven point in
2008. With the company struggling to become profitable
since 2002, and a significant economic slowdown in the U.S.
further hitting their bottom line, the company's share price
has been affected dramatically. But with it's market
domination, history and an eventual economic correction, the
Company looks as though it may see better months and years
ahead. Despite industry conditions that remained
extremely challenging, The Company reduced costs and improved
sales in most product segments in their last announced quarter
(Q2 '08) to achieve positive cash flow and stronger earnings
before interest, taxation, depreciation and amortization. The
Company is near it's 52 week low right now, investors with a
keen eye for the future with a long term investing approach
may want to consider watching Catalyst Paper Corp. (T.CTL).
The Company's
Operations:
The Company's four paper and pulp
manufacturing divisions, paper recycling plant and 100%
recycled newsprint mill are located in the British Columbia
communities of Campbell River, Crofton, Port Alberni, Powell
River and Coquitlam (Greater Vancouver), and in Snowflake,
Arizona. The Company's corporate
office is in Richmond (Greater Vancouver).
Crofton
Located on southern Vancouver Island, near Duncan, Crofton
is an integrated paper and pulp manufacturing division with
three paper machines and two pulp machines. Major products
include newsprint, directory paper and northern bleached
softwood kraft (NBSK) pulp, which is used to manufacture
printing, writing and tissue papers.
Elk Falls
Elk Falls Division, located near Campbell River on
Vancouver Island, produces newsprint and uncoated mechanical
specialty papers. The division also produces sawdust-based
kraft pulp and kraft paper products, which are used by the
packaging industry. Its specialty papers are used in
catalogues, flyers and newspaper inserts.
Port Alberni
Port Alberni Division, located at the head of scenic
Alberni Inlet on Vancouver Island, produces directory and
lightweight coated paper on two machines. The division's
specialty papers are used in telephone directories,
catalogues, magazines, brochures, inserts and flyers.
Powell River
Powell River Division, located on the mainland coast of
British Columbia, produces newsprint and uncoated mechanical
specialty papers on three paper machines. Powell River's
specialty papers are used in catalogues, magazines,
newsletters, inserts, flyers and high-volume weekend newspaper
magazines.
Paper Recycling
The Vancouver suburb of Coquitlam is home to The
Company's Paper Recycling Division. The division
produces de-inked pulp that is used by their
paper mills to manufacture products with recycled content.
Snowflake
Snowflake Mill, located in the foothills of the White
Mountains in northeastern Arizona, produces 100% recycled
newsprint on two paper machines. Its products are sold
primarily to newspaper publishers with a small volume also
sold to commercial printers for a variety of uses.
Snowflake produces a 100% recycled product, marketed under
Catalyst's Marathon™ brand name. It uses a feedstock
composed on old newspapers and old magazines, sourced from
within Arizona and other freight-logical locations. Its two
modern de-inking lines use flotation technology and have a
combined annual capacity of 456,000 bdmt/year.
Snowflake's increasing output of lighter basis weight
grades is responsive to both environmental and economic
criteria. Such papers require fewer inputs to produce; provide
more surface area per tonne; reduce transportation, handling
and storage requirements; and provide operating efficiencies
in the pressroom.
Surrey Distribution Centre
The 38,500 square-metre Surrey Distribution Centre, located
on a 3.6-hectare site along the Fraser River in Metro
Vancouver, provides a vital transportation and distribution
link between Catalyst's B.C. manufacturing facilities and
their customers. Most Catalyst products pass through this
facility, which the company assumed direct operation of in
2007.
Recent News and Press
Releases:
Catalyst
Paper Corporation - Demand conditions result in 30-day
curtailment
CNW Group (Wed, Aug 27)
Catalyst
refinances revolving credit facility
CNW Group (Wed, Aug 13)
Positive
pricing momentum evident in Catalyst Q2 results
CNW Group (Tue, Jul 29)
Q2
2008 Catalyst Paper Corporation Earnings Release - Time Not
Supplied
CCBN (Tue, Jul 29)
Catalyst
Paper Corporation - Second Quarter 2008 Earnings Conference
Call - Wednesday July 30, 2008 8:00 a.m. (Pacific), 11:00 a.m.
(Eastern)
CNW Group (Tue, Jul 8)
Catalyst
to permanently close Elk Falls pulp mill
CNW Group (Mon, Jul 7)
Catalyst
calls for action on major industry tax issue
CNW Group (Mon, Jul 7)
Catalyst
appoints Bill Dickson to board of directors
CNW Group (Mon, Jun 30)
Catalyst
Snowflake Mill given notice of corrugating machine shut
CNW Group (Thu, Jun 26)
Management Team:
Richard Garneau
President and Chief Executive Officer
Richard Garneau has a broad industry background in paper
and forest products gained in a variety of challenging
operational and finance roles. He was appointed Catalyst
Paper's president and chief executive officer on March
26, 2007 after holding senior executive positions with
Domtar Inc., Norampac, St. Laurent Paperboard, Finlay
Forest Products and Donohue Inc.
Mr. Garneau is a chartered accountant, and holds a
bachelor of administration degree from Laval University.
Brian Baarda
Vice-President, Operations
Brian Baarda was appointed vice-president operations in
April 2008, with responsibility for newsprint, old
newspaper (ONP) procurement and recycling.
Since he joined the company in 1989, Brian has worked in
several locations and capacities, including vice
president of Powell River Division, pulp mill manager at
Elk Falls Division, and as director, operational
excellence.
In 2003, Brian was appointed vice-president, supply
chain, responsible for leading a number of critical
functions and services, including fibre supply, order
fulfillment, transportation, logistics management and
supply management.
Steve Boniferro
Senior Vice-President, Human Resources
Steve joined Catalyst in January 2008, bringing more
than 25 years of experience in senior human resource
positions with both management and labour. Prior to his
role at Catalyst, he was vice-president of Algoma Steel,
where he led the human resource group since 1998.
He began his career in the mining industry and served as
president of the Steelworkers Union local in Elliot
Lake, Ontario in the late 1970s. He became a staff
representative with the Steelworkers in 1987 and was
promoted to area coordinator for Northwestern Ontario in
1990.
Steve is a graduate of the Queen's School of Business,
Human Resources Program and an alumnus of the Governor
General's Canadian Leadership Conference. He served on
numerous community boards and committees and has been a
guest lecturer at Harvard and Oxford Universities.
Lyn Brown
Vice-President, Corporate Relations and Social
Responsibility
Lyn is responsible for corporate issues management,
government relations and the company's broad social
responsibility agenda.
Lyn joined the company in 2004, bringing a graduate
degree in business and 20 years of broad experience in
journalism, associations, crown corporations, electric
utilities and telecommunications. She most recently held
executive positions with Aquila Networks Canada (now
Fortis) and senior policy and communications roles at
Telus.
Lyn was appointed to her current position in July 2005.
Tom Crowley
Senior Vice-President, Sales and Marketing
Tom is responsible for sales and marketing of all paper
and pulp products manufactured by Catalyst.
He joined the company in 2000, as vice-president and
general manager, newsprint and was appointed
vice-president and general manager for specialty papers
in 2005 before assuming his current position in
September 2007.
Tom has more than 20 years of industry experience,
including as a pulp and paper mill manager. He has
managed all aspects of customer relationships in regions
as diverse as Latin America, Asia, Africa, the Caribbean
and the Middle East and held prior career assignments in
Guadalajara, Mexico and London, England.
He holds a master’s degree from American Graduate
School of International Management (Thunderbird) and
bachelor degrees in Business and Arts (Latin American
and Spanish Studies) from Southern Methodist University.
Brian Johnston
Vice-President, Operations
Brian Johnston was appointed vice president operations
in April 2008, with responsibility for specialty paper
and pulp.
Brian has more than 25 years of experience in the pulp
and paper industry, having worked in mills from coast to
coast. He joined Catalyst paper in 1994 at Crofton,
holding various positions in paper mill operations. In
2001 Brian transferred to Powell River Division as
vice-president, operations, a position he held until
2005 when he assumed the corporate role of
vice-president, technical services, to provide support
to all mills' operations. Prior to his current
appointment, Brian held the position of vice-president,
operations of Elk Falls Division.
Robert H. Lindstrom
Vice-President, Supply Chain and Information
Technology
As vice-president, supply chain and information
technology, Bob is responsible for managing a number of
critical functions and services, including fibre supply,
order fulfillment, transportation, logistics management,
supply management, energy strategy and management and
information technology.
Before his appointment in August 2005, Bob served as
vice-president, strategy and was instrumental in
developing a long-term strategic direction for all of
our operations. He also worked closely with our CEO to
develop our acquisition strategy for growing the
mechanical paper business.
Valerie Seager
Vice-President and General Counsel
As vice-president and general counsel, Valerie is
responsible for all of the company's legal affairs. She
provides advice on a variety of legal issues and manages
the company's relationships with outside counsel. She
oversees all regulatory and corporate compliance
matters, and ensures that our governance practices meet
the highest standards.
Valerie has a broad legal background, based on 12 years
of private practice and several years of in-house
corporate experience. She joined Catalyst in 2002 as
legal counsel and corporate secretary. In that role, she
directed a wide range of legal files, including
litigation management, contracts, acquisitions and
related strategic initiatives. She assumed her current
position in August 2005.
David Smales
Vice-President, Finance and Chief Financial Officer
David was appointed vice-president, finance and chief
financial officer in April 2007.
Before joining Catalyst in 2006 as vice-president,
strategy and analysis, David was vice-president,
transaction services for PricewaterhouseCoopers, and
previously held a number of senior positions with Novar
PLC, a London-based, publicly traded building management
systems manufacturer.
David is a chartered accountant and holds a bachelor of
arts (honours) degree in history.
Headquarters:
2nd Floor, 3600 Lysander Lane
Richmond, British Columbia, Canada
V7B 1C3
|
Investor Relations:
604-247-4400
Email: Investor.Info@catalystpaper.com
|
website |
Stock Information:
Listing: TSX
Ticker Symbol:
T.CTL
Recent price: $ 0.85
|
CTL
filings with SEDAR can be found here.
All Fillings are current and the Company is fully
reporting. |
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