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
Sector
Industry (SIC)
SEC CIK
Corporate docs
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
Financial summary
Quarter (USD) | Mar 22 | Dec 21 | Sep 21 | Jun 21 | |
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Operating income | |||||
Operating margin | |||||
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Cash on hand | |||||
Change in cash | |||||
Diluted EPS |
Annual (USD) | Dec 21 | Dec 20 | Dec 19 | Dec 18 | |
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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 |
Recent insider trades
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 |
Institutional ownership, Q4 2021
13F holders | Current |
---|---|
Total holders | 1 |
Opened positions | 1 |
Closed positions | 217 |
Increased positions | 0 |
Reduced positions | 0 |
13F shares | Current |
---|---|
Total value | 0 |
Total shares | 0 |
Total puts | 14.2K |
Total calls | 10.3K |
Total put/call ratio | 1.4 |
Largest owners | Shares | Value |
---|---|---|
Simplex Trading | 0 | $0 |
Financial report summary
?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
?Positive | ||
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Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
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New words:
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Removed:
acquire, adjustment, aggregating, analyzed, Audit, Authority, basic, Board, build, calculation, catalog, characterized, Chase, closed, collectively, combined, Committee, comprised, condensed, conduct, consolidating, consumed, containerboard, covering, cumulative, declared, default, defeasance, dependent, depending, dilute, diluted, dilutive, Disease, disposition, distancing, dividend, EAM, efficiency, enhance, expiration, flexibility, fluctuate, Funding, goal, group, guarantee, guarantor, hand, Healthcare, home, human, Hygienic, implementation, Incontinent, intended, joint, JPMorgan, Kingdom, largely, leverage, listed, LLC, maintained, maximize, MMBtu, modified, monitoring, multiemployer, negotiated, occurrence, open, Organization, par, people, preserve, privately, proactively, productivity, profound, rapid, rapidly, rating, ratio, realization, realized, receipt, recently, recommence, record, reducing, released, repurchased, require, resume, resumed, retired, return, revolver, rightsizing, safety, satisfied, saving, settlement, significantly, slowdown, social, society, spread, stronger, structured, suspended, targeting, testing, thermal, Toronto, Treasury, unclear, unconditionally, unconsolidated, unprecedented, unsecured, unused, world, York
Financial reports
Current reports
8-K
Paper Excellence Announces Sale of the Domtar Kamloops Mill
16 May 22
8-K
Regulation FD Disclosure
5 Jan 22
8-K
Domtar Corporation Announces Termination of Consent Solicitations Relating to Its 6.25% Senior Notes Due 2042 and 6.75% Senior Notes Due 2044
13 Dec 21
8-K
Financial Statements and Exhibits
6 Dec 21
8-K
Domtar Corporation Announces Commencement of Consent Solicitations
2 Dec 21
8-K
Entry into a Material Definitive Agreement
30 Nov 21
8-K
Pearl Merger Sub Inc. / 2nd Floor, 3600 Lysander Ln / Richmond, BC V7B 1C3, Canada
3 Oct 21
8-K
Pearl Merger Sub Inc. / 2nd Floor, 3600 Lysander Ln / Richmond, BC V7B 1C3, Canada
28 Sep 21
8-K
Pearl Merger Sub Inc. / 2nd Floor, 3600 Lysander Ln / Richmond, BC V7B 1C3, Canada
30 Aug 21
8-K
Pearl Merger Sub Inc. / 600 Lysander Ln / Richmond, BC V7B 1C3, Canada
23 Aug 21
Registration and prospectus
15-12B
Securities registration termination
12 Dec 21
RW
Registration withdrawal request
30 Nov 21
25-NSE
Exchange delisting
30 Nov 21
S-8 POS
Registration of securities for employees (post-effective amendment)
30 Nov 21
S-8 POS
Registration of securities for employees (post-effective amendment)
30 Nov 21
S-3ASR
Automatic shelf registration
25 Sep 19
S-8 POS
Registration of securities for employees (post-effective amendment)
8 Apr 19
S-3ASR
Automatic shelf registration
25 Sep 16
25-NSE
Exchange delisting
1 Aug 16
25-NSE
Exchange delisting
19 Aug 15
Proxies
DEFA14A
Additional proxy soliciting materials
12 Jul 21
DEFA14A
Additional proxy soliciting materials
7 Jul 21
DEFM14A
Proxy related to merger
29 Jun 21
DEFA14A
Additional proxy soliciting materials
21 Jun 21
PREM14A
Preliminary proxy related to merger
9 Jun 21
DEFA14A
Additional proxy soliciting materials
12 May 21
DEFA14A
Additional proxy soliciting materials
11 May 21
DEFA14A
Additional proxy soliciting materials
25 Mar 21
DEF 14A
Definitive proxy
25 Mar 21
DEFA14A
Additional proxy soliciting materials
14 Apr 20
Other
UPLOAD
Letter from SEC
23 Oct 18
CORRESP
Correspondence with SEC
4 Oct 18
UPLOAD
Letter from SEC
23 Sep 18
UPLOAD
Letter from SEC
18 Sep 17
CORRESP
Correspondence with SEC
13 Sep 17
UPLOAD
Letter from SEC
7 Sep 17
CORRESP
Correspondence with SEC
21 Aug 17
UPLOAD
Letter from SEC
7 Aug 17
CORRESP
Correspondence with SEC
12 Jul 17
UPLOAD
Letter from SEC
28 Jun 17
Ownership
4
Domtar / John David Williams ownership change
2 Dec 21
4
Domtar / Robert W Melton ownership change
2 Dec 21
4
Domtar / Richard S McAtee ownership change
2 Dec 21
4
Domtar / Stephen P Makris ownership change
2 Dec 21
4
Domtar / PATRICK LOULOU ownership change
2 Dec 21
4
Domtar / Nancy Klembus ownership change
2 Dec 21
4
Domtar / Steven M Henry ownership change
2 Dec 21
4
Domtar / James William Edwards ownership change
2 Dec 21
4
Domtar / Daniel Buron ownership change
2 Dec 21
4
Domtar / Maria I Brennan ownership change
2 Dec 21
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.
Transcripts
2021 Q1
Earnings call transcript
8 May 21
2020 Q4
Earnings call transcript
11 Feb 21
2020 Q3
Earnings call transcript
6 Nov 20
2020 Q2
Earnings call transcript
7 Aug 20
2020 Q1
Earnings call transcript
8 May 20
2019 Q4
Earnings call transcript
7 Feb 20
2019 Q3
Earnings call transcript
25 Oct 19
2019 Q2
Earnings call transcript
2 Aug 19
2019 Q1
Earnings call transcript
1 May 19
2018 Q4
Earnings call transcript
5 Feb 19
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