Is this data in right direction? Mercer International Inc. (NASDAQ: MERC)

On 18 March 2020, Mercer International Inc. (NASDAQ: MERC) changed -10.39% to recent value of $7.59. The stock transacted 296729 shares during most recent day however it has an average volume of 319.35K shares. It spotted trading -57.22% off 52-week high price. On the other end, the stock has been noted 17.49% away from the low price over the last 52-weeks.

Mercer International Inc. (MERC) recently stated fourth quarter 2019 Operating EBITDA reduced to negative $34.2M from positive $118.1M in the fourth quarter of 2018 and from $50.8M in the third quarter of 2019. In the fourth quarter of 2019, net loss was $72.7M, or $1.11 per share, contrast to net income of $45.0M, or $0.69 per basic share and $0.68 per diluted share, in the fourth quarter of 2018 and net income of $1.2M, or $0.02 per share in the third quarter of 2019.

In the fourth quarter of 2019 the pulp section had an operating loss of $66.6M contrast to operating income of $94.5M in the same quarter of 2018. The decrease was primarily Because of lower pulp sales realizations and higher yearly maintenance costs partially offset by lower per unit fiber costs and the reversal of $13.7M in accrued wastewater fees.  In the current quarter of 2019, the NBSK pulp realized sales price reduced by about 30% to $581 per ADMT from $830 per ADMT in the same quarter of the previous year Because of high producer inventory levels. NBSK sales volumes increased by about 6% to 416,569 ADMTs in the current quarter from 392,729 ADMTs in the same quarter of 2018Because of the inclusion of MPR for a full quarter and strong demand from China.

In the current quarter, the pulp mills had 54 days (about 86,500 ADMTs) of yearly maintenance downtime contrast to 3 days (about 5,700 ADMTs) of yearly maintenance downtime in the same quarter of the previous year. We estimate that yearly maintenance downtime in the current quarter adversely influenced our operating income by about $74.1M, comprised of about $54.5M in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their results using International Financial Reporting Standards capitalize their direct costs of maintenance downtime.

Per unit fiber costs reduced in the current quarter by about 17% from the same quarter of 2018Because of lower per unit fiber costs for our German mills. In Germany, fiber costs benefitted from the continuing availability of beetle damaged wood.  Fiber costs in Canada remained at high levels Because of strong fiber demand in Celgar’s fiber procurement basket.

As a result of higher per unit fiber costs for our Canadian mills and the decline in pulp sales realizations in the current quarter of 2019, we recorded a non-cash write down of inventory carrying values at our Canadian mills of $9.2M.

Consolidated –Year Ended December 31, 2019 Contrast to Year Ended December 31, 2018

Total revenues in 2019 increased by about 11% to $1,624.4M from $1,457.7M in 2018 primarily Because of the inclusion of the results of MPR for a full year and higher pulp and energy sales volumes partially offset by lower sales realizations.

Costs and expenses in 2019 increased by about 29% to $1,540.4M from $1,189.9M in 2018Because of the inclusion of MPR costs for a full year, higher pulp sales volumes and higher yearly maintenance costs partially offset by lower per unit fiber costs, the positive impact of a stronger dollar primarily on our euro denominated costs and expenses and the reversal of $20.9M in accrued wastewater fees at our German pulp mills.

In 2019, we redeemed $100.0M of 2022 Senior Notes at a cost, including premium, of $103.9M and recorded a loss on such redemption of $4.8M (being $0.07 per share). In 2018, we redeemed $300.0M of 2022 Senior Notes at a cost, including premium, of $317.4M and recorded a loss on such redemption of $21.5M (being $0.33 per share).

Interest expense in 2019 increased to $75.8M from $51.5M in 2018 primarily as a result of the issuance in December 2018 of $350.0M of our 2025 Senior Notes to finance the acquisition of MPR.

In 2018, we incurred expenses of $7.0M in connection with a legal cost award and $5.3M in an acquisition commitment fee related to our acquisition of MPR.

In 2019, after giving effect to costs of $4.8M, or $0.07 per share, for the loss on the redemption of senior notes our net loss was $9.6M, or $0.15 per share. In 2018 we had net income of $128.6M, or $1.97 per basic and $1.96 per diluted share, after giving effect to costs of $33.7M, or $0.52 per basic and $0.51 per diluted share, for the loss on the redemption of senior notes, the legal cost award and the acquisition commitment fee.

In 2019, Operating EBITDA reduced by about 42% to $210.4M from $364.6M in 2018 as lower sales realizations and higher yearly maintenance costs were only partially offset by lower per unit fiber costs, a $20.9M reversal of accrued wastewater fees and the positive impact of a stronger dollar primarily on our euro denominated costs and expenses.

MERC has a gross margin of 9.70% and an operating margin of 4.90% while its profit margin remained -0.60% for the last 12 months. Its earnings per share (EPS) expected to touch remained -107.50% for this year while earning per share for the next 5-years is expected to reach at 5.73%.  The company has 67.79M of outstanding shares and 40.06M shares were floated in the market. According to the most recent quarter its current ratio was 3.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of -13.42% from the mean of 20 days, -27.64% from mean of 50 days SMA and performed -37.79% from mean of 200 days price. Company’s performance for the week was 4.98%, -27.71% for month and YTD performance remained -38.29%.

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