Content analysis
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Legalese | ||
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H.S. freshman Good
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New words:
aim, external, fire, formation, influenced, lag, marginally, Menominee, Michigan, soften, stabilize, twelve
Removed:
anticipate, constitution, enhance, grow, position, requested, responded, seek, Sheet, sustained
Financial report summary
?Competition
Billerud AmericasRisks
- Developments in non-print media and changes in consumer habits regarding the use of paper are expected to continue to adversely affect the demand for some of our products.
- We face intense competition in the forest products industry.
- If we are unable to offer products certified to globally recognized forestry management and chain of custody standards or meet customers’ product specifications, it could adversely affect our ability to compete.
- We may not be successful in implementing our strategies to increase earnings power.
- Changes in the political or economic conditions in the U.S., Canada or other countries in which we sell our products could adversely affect our results of operations.
- Our business is subject to global economic conditions and is highly cyclical; soft conditions could cause a number of the risks we face to increase in likelihood, magnitude and duration.
- Our manufacturing businesses may have difficulty obtaining timber, wood fiber and market pulp at favorable prices, or at all.
- Inflation or a sustained increase in the cost of purchased energy, other raw materials and services would lead to higher manufacturing costs, which could reduce our margins.
- We are subject to the potential loss of important customers and accounts receivable credit risk exposure.
- We are subject to physical, financial, regulatory, transition and litigation risks associated with global, regional, and local weather conditions, and climate change.
- There is increased focus on sustainability reporting and the importance of ESG scores from investors, customers and other stakeholders, which may impact our business.
- We could experience disruptions in operations or increased labor costs due to labor disputes or occupational health and safety issues.
- Difficulties in our employee relations or difficulties identifying, attracting, and retaining employees for work, particularly in remote locations and certain positions with specialized skills, could lead to operational disruptions or increase our costs.
- Disruptions to our supply chain, operations, or the delivery of our products, could adversely affect our financial condition or results of operations.
- We are subject to disruptions impacting the information technology systems used to manage our operations and other business processes, including cybersecurity and privacy incidents that could involve sensitive company, employee, customer, vendor, and shareholder information.
- We are currently transitioning from certain legacy system applications, and during the transition, such legacy systems may be more vulnerable to attack or failure and implementation of the transition may cause disruptions to our business information systems.
- Negative publicity, even if unjustified, could have a negative impact on our brand and the marketability of our products.
- Currency fluctuations can adversely affect our competitive position, selling prices, manufacturing costs, and net monetary items.
- The amount by which our pension plans are underfunded could increase the level of required contributions, which could have an adverse impact on our financial condition.
- Our operations require substantial capital and we may be unable to maintain adequate capital resources to provide for all of our capital requirements.
- The terms of our ABL Credit Facility, our Senior Secured Credit Facility, the indenture governing our 2026 Notes and our Loan Facility could restrict our current and future operations, and increases to interest rates as well as changes relating to LIBOR could impact our borrowings under some of these facilities.
- We may be subject to losses that might not be covered in whole or in part by our insurance coverage.
- We could be required to curtail production, shut down machines or facilities, restructure operations, or sell assets, which could result in recording significant additional closure costs and long-lived asset impairment or accelerated depreciation charges.
- We could be required to record goodwill impairment charges on all or a significant amount of the goodwill on our Consolidated Balance Sheets.
- We could be required to record additional valuation allowances against our recorded deferred income tax assets and we could be limited in our use of certain tax attributes.
- Products we produce in one country and export to another may become subject to additional duties or other international trade remedies or restrictions.
- We are subject to countervailing and anti-dumping duty orders on the vast majority of our U.S. imports of softwood lumber products produced at our Canadian sawmills, which could materially affect our results of operations and cash flows.
- Any failure to comply with laws and regulations could require us to incur or record additional liabilities and adversely affect our results of operations.
- As an owner of real estate and industrial facilities, we could be required to incur or record additional environmental and related health and safety liabilities.
- Our international sales and operations are subject to applicable laws relating to trade, export controls, and foreign corrupt practices, the violation of which could adversely affect our operations.
- We are and may become a party to a number of legal proceedings, claims, governmental inquiries, investigations, and other disputes, and adverse judgments could have a material adverse effect on our financial condition.
- There is a shareholder who owns a substantial percentage of our common stock, and its interests could differ from those of other stockholders, and its actions could affect the price of our common stock.
Management Discussion
- ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- When we refer to “Resolute Forest Products,” “Resolute,” “we,” “our,” “us” or the “Company,” we mean Resolute Forest Products Inc. with its subsidiaries, either individually or collectively, unless otherwise indicated.
- Statements in this Form 10-Q that are not reported financial results or other historical information of Resolute Forest Products are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the potential benefits of the proposed transaction between Resolute Forest Products and Domtar Corporation; the prospective performance and outlook of our business, performance and opportunities; the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction; the impact of the coronavirus (or, “COVID-19”) pandemic and resulting economic conditions on our business, results of operations and market price of our securities; the impact on our future business results of the price volatility of our products; the logistics and transportation network constraints and the levels of inventory; and to our: efforts and initiatives to reduce costs and increase revenues and profitability; business and operating outlook; future pension obligations; assessment of market conditions; growth strategies and prospects, and the growth potential of the Company and the industry in which we operate; liquidity; future cash flows, including as a result of the changes to our pension funding obligations; estimated capital expenditures; environmental, social and governance (or, “ESG”) reporting; and strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words “should,” “would,” “could,” “will,” “may,” “expect,” “believe,” “continue,” “maintain,” “remain,” “estimate,” “aim” and other terms with similar meaning indicating possible future events or potential impact on our business or Resolute Forest Products’ shareholders.