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Canadian Company Spotlight
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Catalyst Paper Corp. Website:
Click
Here |
Information As Of
September 24,
2008 |
| Exchange:
TSX |
Market Cap:
324.4
Million |
| Outstanding Shares:
381.7
Million |
52 Low / High:
$0.76 / $2.06 |
|
Price
September
24, 2008:
$0.85 |
CTL Stock Quote and News:
Click Here |
"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, 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.
(TSX: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.
(TSX: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.
Contact
Catalyst Paper Corporation
2nd Floor, 3600 Lysander Lane
Richmond, British Columbia, Canada
V7B 1C3
Phone: 604-247-4400
Fax: 604-247-0512
David Smales
Vice-President, Finance and Chief Financial Officer
604-247-4013
e-mail:
Investor.Info@catalystpaper.com
Lyn Brown
Vice-President, Corporate Relations and Social
Responsibility
604-247-4713
e-mail:
contactus@catalystpaper.com
SEDAR Filings
CTL filings with SEDAR can be found
here. All
Fillings are current and the Company is fully reporting.
FORWARD
LOOKING STATEMENTS
This report includes
forward-looking statements that reflect Catalyst Paper Corp. current expectations about its future results,
performance, prospects and opportunities. Catalyst Paper Corp. has tried to identify these forward-looking statements by
using words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to a
number of risks, uncertainties and other factors that could
cause Catalyst Paper Corp.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these forward-looking
statements. These risks, uncertainties and other factors
include, without limitation, the Company's growth expectations
and ongoing funding requirements, and specifically, the
Company's growth prospects with scalable customers, and those
outlined above. Other risks include the Company's limited
operating history, the Company's history of operating losses,
consumers' acceptance, the Company's use of licensed
technologies, risk of increased competition, the potential
need for additional financing, the terms and conditions of any
financing that is consummated, the limited trading market for
the Company's securities, the possible volatility of the
Company's stock price, the concentration of ownership, and the
potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature
stock reports are intended to be stock ideas, NOT
recommendations. Please do your own research before investing.
It is crucial that you at least look at current SEC filings
and read the latest press releases. Information contained in
this report was extracted from current documents filed with
the SEC, the company web site and other publicly available
sources deemed reliable. For more information see our
disclaimer section, a link of which can be found on our web
site. This document contains forward-looking statements,
particularly as related to the business plans of the Company,
within the meaning of Section 27A of the Securities Act of
1933 and Sections 21E of the Securities Exchange Act of 1934,
and are subject to the safe harbor created by these sections.
Actual results may differ materially from the Company's
expectations and estimates. This is an advertisement for
Catalyst Paper Corp. The purpose of this advertisement,
like any advertising, is to provide coverage and awareness for
the company. The information provided in this advertisement is
not intended for distribution to, or use by, any person or
entity in any jurisdiction or country where such distribution
or use would be contrary to law or regulation or which would
subject us to any registration requirement within such
jurisdiction or country.
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