-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Mg+K6yt8xYUPLvk4b1FF4zfCHpy7jBO+eg+q61j8hpgK+K2O7E081X2C82F4eCi7 IXvG4D4D4UCs6BAVhpNJMw== 0001012410-98-000021.txt : 19980518 0001012410-98-000021.hdr.sgml : 19980518 ACCESSION NUMBER: 0001012410-98-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERCER INTERNATIONAL INC CENTRAL INDEX KEY: 0000075659 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 916087550 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-09409 FILM NUMBER: 98625800 BUSINESS ADDRESS: STREET 1: BRNDSCHENKE STR 64 CITY: ZURICH SWITZERLAND C STATE: V6 BUSINESS PHONE: 4112017710 10-Q 1 MERCER INTERNATIONAL INC. - 1ST QUARTER 1998 FORM 10-Q 1 ============================================================================== U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------- ------- Commission File No.: 000-09409 MERCER INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) Washington 91-6087550 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) Burglistrasse 6, Zurich, Switzerland CH 8002 (Address of principal executive offices) (Zip Code) 41(1) 201 7710 (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- The Registrant had 15,178,722 shares of beneficial interest outstanding as at May 14, 1998. ============================================================================== 2 FORWARD-LOOKING STATEMENTS Statements in this report, to the extent they are not based on historical events, constitute forward-looking statements. Forward-looking statements include, without limitation, statements regarding the outlook for future operations, forecasts of future costs and expenditures, the evaluation of market conditions, the outcome of legal proceedings, the adequacy of reserves, or other business plans. Investors are cautioned that forward-looking statements are subject to an inherent risk that actual results may vary materially from those described herein. Factors that may result in such variance, in addition to those accompanying the forward-looking statements, include changes in interest rates, commodity prices, and other economic conditions; actions by competitors; changing weather conditions and other natural phenomena; actions by government authorities; uncertainties associated with legal proceedings; technological development; future decisions by management in response to changing conditions; and misjudgments in the course of preparing forward-looking statements. PART I. FINANCIAL INFORMATION --------------------- ITEM 1. FINANCIAL STATEMENTS MERCER INTERNATIONAL INC. CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1998 (Unaudited) 2 3 MERCER INTERNATIONAL INC. CONSOLIDATED BALANCE SHEETS As at March 31, 1998 and December 31, 1997 (Unaudited) (dollars in thousands) March 31, December 31, 1998 1997 ------------ ------------ ASSETS Current Assets Cash and cash equivalents $ 2,132 $ 4,414 Investments 53,984 56,285 Receivables 29,175 22,329 Inventories 15,226 15,799 Other 1,575 1,557 ------------ ------------ Total current assets 102,092 100,384 Long-Term Assets Properties 88,426 87,806 Investments 4,706 4,118 Note receivable 7,000 7,000 Deferred income tax assets 10,711 10,986 ------------ ------------ 110,843 109,910 ------------ ------------ $ 212,935 $ 210,294 ============ ============ LIABILITIES Current Liabilities Accounts payable and accrued expenses $ 47,703 $ 50,172 Notes payable 2,790 3,252 Debt 3,722 4,329 ------------ ------------ Total current liabilities 54,215 57,753 Long Term Liabilities Debt 15,388 15,039 Other 1,972 2,027 ------------ ------------ 17,360 17,066 ------------ ------------ Total liabilities 71,575 74,819 SHAREHOLDERS' EQUITY Shares of beneficial interest 89,799 88,603 Cumulative translation adjustment (43,554) (41,376) Net unrealized loss on investments valuation (912) (1,517) Retained earnings 96,027 89,765 ------------ ------------ 141,360 135,475 ------------ ------------ $ 212,935 $ 210,294 ============ ============ The accompanying notes are an integral part of these financial statements. 3 4 MERCER INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For Three Months Ended March 31, 1998 and 1997 (Unaudited) (dollars in thousands, except for earnings per share) 1998 1997 ------------ ------------ Revenues Sales $ 49,093 $ 42,132 Investments 3,416 2,222 ------------ ------------ 52,509 44,354 Expenses Cost of sales 39,580 34,468 General and administrative 5,874 5,804 Interest expenses 793 884 ------------ ------------ 46,247 41,156 ------------ ------------ Income from operations before income taxes 6,262 3,198 Income taxes - 14 ------------ ------------ Net income 6,262 3,184 Retained earnings, beginning of period 89,765 122,838 ------------ ------------ Retained earnings, end of period $ 96,027 $ 126,022 ============ ============ Earnings per share Basic $ 0.41 $ 0.21 ============ ============ Diluted $ 0.41 $ 0.21 ============ ============ The accompanying notes are an integral part of these financial statements. 4 5 MERCER INTERNATIONAL INC. STATEMENT OF COMPREHENSIVE INCOME For Three Months Ended March 31, 1998 and 1997 (Unaudited) (dollars in thousands) 1998 1997 ------------ ------------ Net income $ 6,262 $ 3,184 Other comprehensive income (loss): Foreign currency translation adjustments (2,178) (15,666) Unrealised gain on securities 605 412 ------------ ------------ Other comprehensive loss (1,573) (15,254) ------------ ------------ Total comprehensive income (loss) $ 4,689 $ (12,070) ============ ============ The accompanying notes are an integral part of these financial statements. 5 6 MERCER INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For Three Months Ended March 31, 1998 and 1997 (Unaudited) (dollars in thousands) 1998 1997 ------------ ------------ Cash Flows from Continuing Operating Activities: Net income from continuing operations $ 6,263 $ 3,184 Adjustments to reconcile net income from continuing operations to cash from continuing operating activities Depreciation and amortization 3,289 2,987 Non-cash asset acquisitions (2,502) (5,057) ------------ ------------ 7,050 1,114 Changes in current assets and liabilities Investment in trading securities 785 1,769 Inventories 143 1,939 Receivables (9,240) 796 Accounts payable and accrued expenses 2,023 (7,422) Other (11) 144 ------------ ------------ Net cash provided by (used in) continuing operating activities 750 (1,660) Cash Flows from Investing Activities of Continuing Operations: Purchase of fixed assets (3,923) (1,864) Other 14 8 ------------ ------------ Net cash used in investing activities of continuing operations (3,909) (1,856) Cash Flows from Financing Activities of Continuing Operations: Increase in bank indebtedness 831 - Decrease in bank indebtedness (1,080) (2,684) Net proceeds on issuance (cost to repurchase) of shares of beneficial interest 1,196 570 ------------ ------------ Net cash provided by (used in) financing activities of continuing operations 947 (2,114) Effect of exchange rate changes on cash and cash equivalents (70) (289) ------------ ------------ Net decrease in cash and cash equivalents (2,282) (5,919) Cash and cash equivalents, beginning of period 4,414 9,967 ------------ ------------ Cash and cash equivalents, end of period $ 2,132 $ 4,048 ============ ============ The accompanying notes are an integral part of these financial statements. 6 7 MERCER INTERNATIONAL INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THREE MONTHS ENDED MARCH 31, 1998 (Unaudited) NOTE 1. BASIS OF PRESENTATION - ------------------------------ The interim period consolidated financial statements contained herein include the accounts of Mercer International Inc. and its subsidiaries (the "Company"). The interim period consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The interim period consolidated financial statements should be read together with the audited consolidated financial statements and accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 1997. In the opinion of the Company, the unaudited consolidated financial statements contained herein contain all adjustments necessary in order to present a fair statement of the results of the interim periods presented. NOTE 2. EARNINGS PER SHARE - --------------------------- Earnings per share is computed on the basis of the weighted average number of shares outstanding during a period after considering convertible securities, warrants and options. The weighted average number of shares outstanding for the purposes of calculating diluted earnings per share was 15,243,379 and 14,948,429 for the three months ended March 31, 1998 and 1997, respectively. 7 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Mercer International Inc. is a pulp and paper company headquartered in Zurich, Switzerland and its operations are primarily located in Germany. In this document: (i) unless the context otherwise requires, the "Company" refers to Mercer International Inc. and its subsidiaries; and (ii) a "tonne" is one metric ton or 2,204.6 pounds. The following discussion and analysis of the results of operations and financial condition of the Company for the three months ended March 31, 1998 should be read in conjunction with the consolidated financial statements and related notes included elsewhere herein. RESULTS OF OPERATIONS - Three Months Ended March 31, 1998 - --------------------------------------------------------- In the three months ended March 31, 1998, revenues increased to $52.5 million from $44.4 million in the same period in 1997, as a result of improved demand for pulp and paper products. However, as the Company's products are principally sold in deutschmarks, the depreciation of the deutschmark against the U.S. dollar by approximately 8.8% in the three months ended March 31, 1998, compared to the same period in 1997, resulted in lower prices in U.S. dollar terms for the Company's products. Expenses increased to $46.2 million in the three months ended March 31, 1998, compared to $41.2 million in the same period of 1997, primarily as a result of an increase in the cost of sales due to higher sales. General and administrative expenses increased to $5.9 million in the three months ended March 31, 1998 from $5.8 million in the comparative period of 1997 due to increased activities related to the pulp mill conversion project. Interest expense decreased to $0.8 million in the three months ended March 31, 1998 from $0.9 million in the three months ended March 31, 1997, as a result of lower interest rates and reduced indebtedness. In the three months ended March 31, 1998, net income was $6.3 million or $0.41 per share, compared to $3.2 million or $0.21 per share for the three months ended March 31, 1997. Selected sales data for the Company for the quarterly periods ended March 31, 1998 and 1997, respectively, is as follows: Quarter Ended Quarter Ended March 31, 1998 March 31, 1997 -------------- -------------- (in thousands) Sales by Product Class - ---------------------- Packaging papers $ 8,431 $ 7,011 Specialty papers 8,628 6,916 Printing papers 10,672 8,901 Pulp 20,593 18,401 Other 769 903 -------------- -------------- Total(1) $ 49,093 $ 42,132 ============== ============== 8 9 Quarter Ended Quarter Ended March 31, 1998 March 31, 1997 -------------- -------------- (in thousands) Sales by Geographic Area - ------------------------ Germany $ 27,319 $ 25,265 European Union(2) 18,611 12,780 Other 3,163 4,087 -------------- -------------- Total $ 49,093 $ 42,132 ============== ============== Sales by Volume (tonnes) - --------------- Packaging papers 31,893 26,589 Specialty papers 10,543 8,459 Printing papers 14,904 12,851 Pulp 42,289 41,445 -------------- -------------- Total 99,629 89,344 ============== ============== - ---------------- (1) Excluding intercompany sales. (2) Not including Germany. Pulp and paper markets were generally weak but stable in the first quarter of 1998. Product prices increased slightly in the first quarter of 1998 from the same period in 1997, and sales volumes were 11.5% higher in the first quarter of 1998 compared to the same period in 1997. In the three months ended March 31, 1998, pulp prices increased slightly but excess world inventories and weak Asian markets did not allow for a significant price increase. List prices for pulp in the three months ended March 31, 1998 were, on average, approximately 9.7% higher than in the three months ended March 31, 1997. The Company's pulp sales increased by 11.9% to $20.6 million in the three months ended March 31, 1998 from $18.4 million in the comparative period of 1997 on a volume increase of 2.0% and an average price increase of 9.7%. Although the demand for pulp remains relatively strong, there can be no assurance that pulp markets will remain favourable as excess inventories redirected from exporters traditionally exporting to the Asian markets continue to put pressure on pulp prices. Paper prices also increased slightly in the three months ended March 31, 1998, primarily as a result of an increased demand during the period for all paper grades, considering a decline in pulp and waste paper prices during the three months ended March 31, 1998. In addition, particularly strong demand for light weight coated papers resulted in product substitution by certain end users, which lead to an increased demand for other printing and writing grades and maintained the price increase during the first quarter of 1998. Paper sales in the three months ended March 31, 1998 increased by 21.5% to $27.7 million from $22.8 million in the three months ended March 31, 1997 on a volume increase of 19.7% and an average price increase of 1.5%. Sales volume for packaging, specialty and printing papers increased in the three months ended March 31, 1998 by 19.9%, 24.6% and 16.0%, respectively, compared to the three months ended March 31, 1997. The average price for all classes of paper increased during the first quarter of 1998, compared to the fourth quarter of 1997. Although this progressive increase in paper prices is expected to continue during the first half of 1998, there can be no assurance that paper prices will remain favourable. 9 10 Better pulp and paper prices in the three months ended March 31, 1998 were partially offset during the period by increased fibre costs from prices for wood chips and pulp wood used to produce pulp and increased prices for pulp and recycled fibre (waste paper) used to produce paper, as compared to the same period in 1997. Relatively strong pulp and paper demand resulted in manufacturing facilities operating at or near full production capacity. On average, the Company's fibre costs for pulp production were up approximately 14.5% in the three months ended March 31, 1998, compared to the same period in 1997, but remained among the lowest in Europe. Recycled fibre costs increased slightly in the three months ended March 31, 1998 and were up approximately 1.5% compared to the same period in 1997. However, there can be no assurance that recycled fibre costs will not escalate significantly in the future. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- The following table is a summary of selected financial information concerning the Company for the periods indicated: As at As at March 31, 1998 December 31, 1997 -------------- ----------------- (in thousands) Financial Position - ------------------ Working capital $ 47,877 $ 42,631 Total assets 212,935 210,294 Long-term government debt 7,029 8,338 Long-term debt - other 8,359 6,701 At March 31, 1998, the Company's cash and cash equivalents totalled $2.1 million, a net decrease of $2.3 million from $4.4 million at December 31, 1997. At March 31, 1998, the Company had short-term trading securities totalling $54.0 million, compared to $56.3 million at December 31, 1997. Operating Activities - -------------------- Cash provided by continuing operating activities was $0.8 million in the three months ended March 31, 1998, compared to cash used in continuing operating activities of $1.7 million in the three months ended March 31, 1997. An increase in accounts payable and accrued liabilities provided cash of $2.0 million in the three months ended March 31, 1998, compared to a decrease in same using cash of $7.4 million in the three months ended March 31, 1997. A decrease in investment in trading securities provided cash of $0.8 million in the three months ended March 31, 1998, compared to $1.8 million in the three months ended March 31, 1997. A decrease in inventories provided cash of $0.1 million in the three months ended March 31, 1998, compared to $1.9 million in the three months ended March 31, 1997. An increase in receivables used cash of $9.2 million in the three months ended March 31, 1998, compared to a decrease in receivables providing cash of $0.8 million in the three months ended March 31, 1997. The Company expects to generate sufficient cash flow from operations to meet its working capital requirements. 10 11 Investing Activities - -------------------- Investing activities in the three months ended March 31, 1998 used cash of $3.9 million, consisting primarily of capital expenditures for upgrades to the Company's manufacturing plants, compared to $1.9 million in the three months ended March 31, 1997. The Company has undertaken significant capital investments to upgrade its manufacturing plants, including expending approximately $8.8 million in 1997, of which $1.7 million was funded by non-refundable government grants. As a result of the Company's plan to convert the production of its pulp mill from sulphite to kraft pulp, the Company's previous capital investment program has been modified to reflect the conversion project. The Company expects capital investments in 1998, excluding the kraft pulp conversion project, to be approximately $5.5 million, which will be funded from cash, cash flow from operations and non-refundable government grants. Approximately $2.0 million was expended in the first quarter of 1998, compared to approximately $1.9 million in the same period of 1997. The Company is proceeding with its plan to convert its pulp mill from the production of sulphite pulp to kraft pulp. The conversion is, among other things, expected to increase the capacity of the pulp mill from 160,000 tonnes to 280,000 tonnes per annum and reduce the mill's emissions of sulphur dioxides and effluent substantially. The estimated cost for the conversion is approximately $325 million, which will be financed through a combination of non-refundable governmental grants of approximately $97.5 million and governmental assistance and guarantees for long-term project financing. The Company estimates that, subject to receipt of all necessary permits and consents in the anticipated time frame, capital expenditures in respect of the conversion project in 1998 will be approximately $100 million. The conversion project is expected to commence in 1998 and to be completed at or about the end of 1999. To obtain the loan guarantees and other subsidizations from the government, the Company has been in discussions with the Bundesanstalt fur Vereignigungsbedingte ("BVS"), the German privatization agency, regarding the modification of the original acquisition agreements to allow for the expansion and conversion of the pulp mill and the consequent need to reschedule and change capital investments. These discussions and certain interpretations as to the way that the Company's subsidiaries have remitted management fees in the past and the treatment of certain pre-acquisition accruals may result in an agreement with BVS to resolve all outstanding issues. Management does not believe that such agreement will have a material impact on earnings or the financial position of the Company, but may result in, among other things, further capital investments and certain profit share payments to BVS related to the reversal of certain pre-acquisition accruals pursuant to the original acquisition agreements. The Company plans to restructure its paper operations in 1998 and has completed the sale of its Raschau packaging paper facility as part of the restructuring. In addition, the Company intends to divest itself of its Greiz paper mill in the second quarter of 1998. 11 12 Financing Activities - -------------------- Cash provided by financing activities was $0.9 million in the three months ended March 31, 1998, compared to cash used by financing activities of $2.1 million in the three months ended March 31, 1997. A net decrease in bank indebtedness used cash of $0.2 million in the three months ended March 31, 1998, compared to $2.7 million in the same period of 1997. The Company issued shares for net proceeds of $1.2 million in the three months ended March 31, 1998, compared to $0.6 million in the three months ended March 31, 1997. The depreciation of the deutschmark against the U.S. dollar in the first quarter of 1998 resulted in an unrealized foreign exchange translation loss of $0.1 million on cash and cash equivalents, which is included as shareholders' equity in the Company's balance sheet and does not affect the Company's net earnings. See "Foreign Currency". Other than the Company's plan to convert the production of its pulp mill from sulphite to kraft pulp, the Company had no material commitments to acquire assets or operating businesses as at March 31, 1998. The Company anticipates that there will be acquisitions of businesses or commitments to projects in the future. To achieve its long-term goals of expanding its asset and earnings base through mergers and acquisitions, the Company will require substantial capital resources. The necessary resources will be generated from cash flow from operations, cash on hand, borrowing against its assets and/or the sale of assets. Foreign Currency - ---------------- Substantially all of the Company's operations are conducted in international markets and its consolidated financial results are subject to foreign currency exchange rate fluctuations, in particular, those in Germany. The Company's pulp and paper products are principally sold in deutschmarks and approximately 99% of the Company revenues are denominated in deutschmarks. The Company translates foreign assets and liabilities into U.S. dollars at the rate of exchange on the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the year. Unrealized gains or losses from these translations are recorded as shareholders' equity on the balance sheet and do not affect the net earnings of the Company. Since substantially all of the Company's revenues are received in deutschmarks, the financial position of the Company for any given period, when reported in U.S. dollars, can be significantly affected by the exchange rate for deutschmarks prevailing during that period. In the three months ended March 31, 1998, the overall depreciation of the deutschmark against the U.S. dollar resulted in a net $2.2 million foreign exchange translation loss and, as a result, the cumulative foreign exchange translation loss was increased from $41.4 million at December 31, 1997 to $43.6 million at March 31, 1998. As both the Company's principal sources of revenues and expenses are in deutschmarks, the Company does not currently enter into any currency hedging arrangements for exchange rate fluctuations. 12 13 The average and period ending exchange rates for the deutschmark to the U.S. dollar for the periods indicated are as follows:
Period From Quarter Ended Quarter Ended March 31 to May 12, 1998 March 31, 1998 March 31, 1997 -------------------------- -------------------------- -------------------------- Period End Period Average Period End Period Average Period End Period Average ---------- -------------- ---------- -------------- ---------- -------------- RATE OF EXCHANGE Deutschmark 1.7740 1.7965 1.8496 1.8189 1.6672 1.6635
Based upon the period average exchange rate in the first quarter of 1998, the U.S. dollar increased by approximately 1.1% in value against the deutschmark since December 31, 1997. Cyclical Nature of Business; Competitive Position - ------------------------------------------------- The pulp and paper business is cyclical in nature and markets for the Company's principal products are characterized by periods of supply and demand imbalance, which in turn affects product prices. The markets for pulp and paper are highly competitive and sensitive to cyclical changes in industry capacity and in the economy, both of which can have a significant influence on selling prices and the earnings of the Company. Demand for pulp and paper products has historically been determined by the level of economic growth and has been closely tied to overall business activity. The competitive position of the Company is influenced by the availability and quality of raw materials (fibre) and its experience in relation to other producers with respect to inflation, energy, labour costs and productivity. In 1998, the federal government of Germany is expected to implement certain legislative changes, including a 1% increase in the value-added tax rate to 16% effective April 1998 and the dismantlement of the monopolistic structures of the energy markets in Germany to open such markets to foreign suppliers of gas and electricity. The latter change should result in lower prices for the supply of gas and electricity from which the Company expects to benefit by July 1998. 13 14 PART II. OTHER INFORMATION ----------------- ITEM 1. LEGAL PROCEEDINGS The Company is subject to routine litigation incidental to its business. The Company does not believe that the outcome of such litigation will have a material adverse effect on its business or financial condition. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit Number Description ------- ----------- 27.1 Article 5 - Financial Data Schedule for the 1st Quarter 1998 - Form 10-Q. 27.2 Article 5 - Restated Financial Data Schedule for the 1st, 2nd and 3rd Quarters 1997 - Form 10-Qs. 27.3 Article 5 - Restated Financial Data Schedule for the 1st, 2nd and 3rd Quarters 1996 - Form 10-Qs. 27.4 Article 5 - Restated Financial Data Schedule for the Fiscal Years Ended December 31, 1996 and December 31, 1995 - Form 10- Ks. (b) Reports on Form 8-K None. 14 15 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MERCER INTERNATIONAL INC. /s/ Maarten Reidel --------------------------- Maarten Reidel Secretary and Chief Financial Officer Date: May 14, 1997 15 16 EXHIBIT INDEX Exhibit Number Description - ------- ----------- 27.1 Article 5 - Financial Data Schedule for the 1st Quarter 1998 - Form 10-Q. 27.2 Article 5 - Restated Financial Data Schedule for the 1st, 2nd and 3rd Quarters 1997 - Form 10-Qs. 27.3 Article 5 - Restated Financial Data Schedule for the 1st, 2nd and 3rd Quarters 1996 - Form 10-Qs. 27.4 Article 5 - Restated Financial Data Schedule for the Fiscal Years Ended December 31, 1996 and December 31, 1995 - Form 10- Ks. EX-27 2 EX 27.1 - ARTICLE 5 - FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES INCLUDED IN THIS FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 2,123 53,984 29,175 0 15,226 102,092 88,426 0 212,935 54,215 15,388 0 0 89,799 51,561 212,935 49,093 52,509 39,580 46,247 0 0 793 6,262 0 6,262 0 0 0 6,262 0.41 0.41
EX-27 3 EX 27.2 - ARTICLE 5 - FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RESPECTIVE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR THE FISCAL QUARTERS ENDED MARCH 31, 1997, JUNE 30, 1997 AND SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERNCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS 6-MOS 9-MOS DEC-31-1997 DEC-31-1997 DEC-31-1997 JAN-01-1997 JAN-01-1997 JAN-01-1997 MAR-31-1997 JUN-30-1997 SEP-30-1997 4,048 5,709 5,109 75,276 65,413 67,292 16,362 14,346 16,391 0 0 0 17,143 16,748 14,957 112,953 102,321 104,008 134,783 132,967 130,199 0 0 0 268,708 255,617 254,511 64,584 56,388 54,206 12,682 13,891 14,259 0 0 0 0 0 0 87,606 87,522 87,672 96,504 92,269 94,699 268,708 255,617 254,511 42,132 84,719 130,234 44,354 90,094 138,400 34,468 69,259 106,587 41,156 82,771 126,310 0 0 0 0 0 0 884 1,403 2,149 3,198 7,323 12,090 14 28 41 3,184 7,295 12,049 0 0 0 0 0 0 0 0 0 3,184 7,295 12,049 0.21 0.49 0.80 0.21 0.49 0.80
EX-27 4 EX 27.3 - ARTICLE 5 - FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RESPECTIVE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR THE FISCAL QUARTERS ENDED MARCH 31, 1996, JUNE 30, 1996 AND SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERNCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS 6-MOS 9-MOS DEC-31-1996 DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 JAN-01-1996 MAR-31-1996 JUN-30-1996 SEP-30-1996 12,706 12,172 15,279 72,742 80,543 78,332 18,384 22,158 20,066 0 0 0 26,968 19,936 20,784 131,535 135,683 135,267 143,655 144,521 143,319 0 0 0 357,582 308,731 305,624 59,983 68,347 62,709 27,569 27,613 32,402 0 0 0 0 0 0 69,978 69,978 87,672 157,088 104,032 106,898 357,582 308,731 305,624 48,085 92,313 136,488 49,873 99,550 146,466 36,615 75,994 112,298 43,943 90,736 134,483 0 0 0 0 0 0 1,059 1,954 2,899 5,930 8,814 11,983 70 81 110 5,860 8,733 11,873 30 466 466 0 0 0 0 0 0 5,890 9,199 12,339 0.44 0.69 0.91 0.44 0.68 0.90
EX-27 5 EX 27.4 - ARTICLE 5 - FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RESPECTIVE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR THE FISCAL YEARS ENDED DECEMBER 31, 1996 AND DECEMBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS 12-MOS DEC-31-1996 DEC-31-1995 JAN-01-1996 JAN-01-1995 DEC-31-1996 DEC-31-1995 9,967 29,230 81,863 65,311 18,366 17,711 0 0 20,668 27,723 132,651 140,618 142,257 145,241 0 0 296,980 369,953 71,129 73,977 28,610 22,760 0 0 0 0 85,965 70,765 108,574 156,250 296,980 369,953 174,097 275,332 186,729 300,737 145,432 191,726 174,273 238,486 0 0 0 0 3,978 4,543 12,456 62,251 (3,101) (9,132) 15,557 65,637 466 (1,454) 0 0 0 0 16,023 64,183 1.15 5.12 1.15 5.02
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