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Domtar (UFS)

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 8,800 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.2 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina.

Company profile

Ticker
UFS
Exchange
Website
CEO
John Williams
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
Domtar Industries LLC • Domtar Funding Limited Liability Company • E.B. Eddy Paper, Inc. • Ariva Distribution Inc. • Domtar A.W. LLC • Domtar Wisconsin Dam Corp. • Domtar Europe • Domtar AI Inc. • EAM Corporation • Palmetto Enterprises LLC ...

UFS stock data

Calendar

5 May 22
17 May 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 54M 54M 54M 54M 54M 54M
Cash burn (monthly) 160.67M 51.42M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 249.84M 79.95M n/a n/a n/a n/a
Cash remaining -195.84M -25.95M n/a n/a n/a n/a
Runway (months of cash) -1.2 -0.5 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Nov 21 Giannella Alvarez Common Stock Sale back to company Dispose D No No 55.5 4,313 239.37K 0
30 Nov 21 Giannella Alvarez Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 17,471.809 969.69K 0
30 Nov 21 Giannella Alvarez Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 2,558.215 141.98K 0
30 Nov 21 Apple Robert E Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 37,083.947 2.06M 0
30 Nov 21 Illingworth David J Common Stock Sale back to company Dispose D No No 55.5 3,564 197.8K 0
30 Nov 21 Illingworth David J Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 18,484.54 1.03M 0
30 Nov 21 Illingworth David J Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 2,558.215 141.98K 0
30 Nov 21 Levitt Brian M Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 44,870.135 2.49M 0
30 Nov 21 Levitt Brian M Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 2,558.215 141.98K 0
30 Nov 21 Maffucci David G Deferred Share Units Common Stock Sale back to company Dispose D No No 55.5 31,823.82 1.77M 0
13F holders Current Prev Q Change
Total holders 1 217 -99.5%
Opened positions 1 23 -95.7%
Closed positions 217 39 +456.4%
Increased positions 0 68 EXIT
Reduced positions 0 91 EXIT
13F shares Current Prev Q Change
Total value 0 2.51B EXIT
Total shares 0 46M EXIT
Total puts 14.2K 105K -86.5%
Total calls 10.3K 513.2K -98.0%
Total put/call ratio 1.4 0.2 +573.8%
Largest owners Shares Value Change
Simplex Trading 0 $0
Largest transactions Shares Bought/sold Change
BLK Blackrock 0 -8.06M EXIT
Vanguard 0 -5.43M EXIT
Dimensional Fund Advisors 0 -3.62M EXIT
Magnetar Financial 0 -2.21M EXIT
FIL 0 -2.01M EXIT
STT State Street 0 -1.7M EXIT
Arp Americas 0 -1.18M EXIT
Carlson Capital L P 0 -1.14M EXIT
Geode Capital Management 0 -847.04K EXIT
JPM JPMorgan Chase & Co. 0 -803.35K EXIT

Financial report summary

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Risks
  • Failure to successfully implement the Company’s business diversification initiatives could have a material adverse effect on its business, results of operations and financial position.
  • The Company’s paper products are vulnerable to long-term declines in demand due to competing technologies or materials.
  • The pulp and paper industry is highly cyclical. Fluctuations in the prices of and the demand for the Company’s pulp and paper products could result in lower sales and profit.
  • The Company relies heavily on a small number of significant customers, including one customer that represented approximately 12% of the Company’s sales in 2021. A significant change in customer relationships or in customer demand for our products could materially adversely affect the Company’s business, financial condition or results of operations.
  • The Company may have difficulty obtaining wood fiber at favorable prices, or at all.
  • An increase in the cost of the Company’s purchased energy or other raw materials would lead to higher manufacturing costs, thereby reducing its margins.
  • The Company depends on third parties for transportation services.
  • The Company could experience disruptions in operations and/or increased labor costs due to labor disputes.
  • A material disruption in the Company supply chain, manufacturing or distribution operations could prevent it from meeting customer demand, reduce its sales and/or negatively impact its results of operations.
  • The Company could encounter difficulties restructuring operations or closing or disposing of facilities or business.
  • The Company could incur substantial costs as a result of compliance with, violations of or liabilities under applicable environmental laws and regulations. It could also incur costs as a result of asbestos-related personal injury litigation.
  • The Company may incur substantially more debt. This could increase risks associated with its leverage.
  • The Company’s operations require substantial capital, and it may not have adequate capital resources to provide for all of its capital requirements.
  • The Company’s ability to generate the significant amount of cash needed to pay interest and principal on the Company’s secured and unsecured long-term indebtedness and service its other debt and financial obligations and its ability to refinance all or a portion of its indebtedness or obtain additional financing depends on many factors beyond the Company’s control.
  • The Company has liabilities with respect to its pension plans and the actual cost of its pension plan obligations could exceed current provisions. As of December 31, 2021, the Company’s defined benefit plans had a surplus of $248 million on certain plans and a deficit of $59 million on others.
  • The Company faces intense competition in its markets, and the failure to compete effectively could have a material adverse effect on its business and results of operations.
  • Conditions in the global political and economic environment, including the global capital and credit markets, can adversely affect the Company’s business, results of operations and financial position.
  • The Company is affected by changes in currency exchange rates.
  • The Company’s intellectual property rights are valuable, and any inability to protect them could reduce the value of its products and its brands.
  • Our operations could be adversely affected by disruptions to our Information Technology (IT) Services.
Management Discussion
  • Operating income in our Pulp and Paper business amounted to $39 million in first quarter of 2022, an increase of $38 million, when compared to operating income of $1 million in first quarter of 2021. Our results were positively impacted by:
  • We incurred $14 million of corporate charges in the first quarter of 2022, an increase of $4 million compared to corporate charges of $10 million in the first quarter of 2021. This increase was mostly due to transaction costs in the first quarter of 2022 related to our Merger. There were no transaction costs in the first quarter of 2021.
  • We incurred $21 million of net interest expense in the first quarter of 2022, an increase of $6 million compared to net interest expense of $15 million in the first quarter of 2021. Net interest expense in the first quarter of 2022 is related to the $775 million Senior Secured Notes due 2028 issued on October 18, 2021, the new ABL Revolving Credit Facility entered into on November 30, 2021, the First Lien Term Loan facility entered on November 30, 2021, as well as a write-off of $6 million related to unamortized debt issuance cost. These interest expenses were partially offset by lower interest on the 4.4% Notes due to the early retirement in April 2021 as well as a non-cash gain on the fair value increment of the 6.25% Notes and 6.75% Notes upon partial repayment in January 2022. In the first quarter of 2022, we had capitalized interest of $4 million, compared to $1 million in the first quarter of 2021, mostly related to our mill conversion. See section “Capital Resources” below for more information on our new debt structure following our Merger on November 30, 2021.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
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Patents

Utility
Dispersion of Cellulose Nanocrystals (CNCS) In Monoethylene Glycol and Process of Preparing Same
9 Dec 21
The disclosure provides a nanodispersion of cellulose nanocrystals (CNCs) in monoethylene glycol (MEG) as well as a method for dispersing CNCs in MEG and a process for preparing a polymer composites comprising a CNC nanodispersion in MEG comprising copolymerizing said nanodispersion of CNCs and at least one monomer polymerizable with said MEG and/or CNCs.
Utility
Expandable And/or Disposable Ice Pack
19 Aug 21
This disclosure includes ice packs (10) that comprise paper and absorbent material (22A, 22), and also includes various methods of adding liquid to, freezing, shipping, and/or using such ice packs (10).
Utility
Conductive cellulose nanocrystals, method of producing same and uses thereof
13 Jul 21
The present disclosure provides a core-shell nanocomposite material comprising an intrinsically conductive polymer (ICP) and surface-modified cellulose nanocrystals (CNCs) as well as synthesis for preparing same and its use thereof in various applications.
Utility
Surface Enhanced Pulp Fibers, Methods of Making Surface Enhanced Pulp Fibers, Products Incorporating Surface Enhanced Pulp Fibers, and Methods of Making Products Incorporating Surface Enhanced Pulp Fibers
8 Jul 21
Various embodiments of the present invention relate to surface enhanced pulp fibers, various products incorporating surface enhanced pulp fibers, and methods and systems for producing surface enhanced pulp fibers.
Utility
Surface enhanced pulp fibers, methods of making surface enhanced pulp fibers, products incorporating surface enhanced pulp fibers, and methods of making products incorporating surface enhanced pulp fibers
13 Apr 21
Various embodiments of the present invention relate to surface enhanced pulp fibers, various products incorporating surface enhanced pulp fibers, and methods and systems for producing surface enhanced pulp fibers.