RESOLUTE FOREST PRODUCTS INC. (TSE:RFP) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
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RESOLUTE FOREST PRODUCTS INC. (TSE:RFP) Files An 8-K Results of Operations and Financial Condition
ITEM 2.02

On April 30, 2020, Resolute Forest Products Inc. (the “Company”) reported its earnings for the first quarter ended March 31, 2020. A copy of the press release containing the information is furnished as exhibit 99.1 and is incorporated herein by reference.

The information contained and incorporated in Item 2.02 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Risk Factor Update

The Company is supplementing the risk factors described under “Item 1A. Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, (“Form 10-K”) with the additional risk factor set forth below. This supplemental risk factor should be read in conjunction with the other risk factors described in the Form 10-K, which have been heightened by this additional risk factor.

We face various risks related to the novel coronavirus (or “COVID-19”)

The outbreak of the COVID-19 pandemic caused by the novel coronavirus has had, and could continue to have a negative impact on financial markets, economic conditions and portions of our business. While we are unable to predict the extent, nature and duration of these impacts at this time, the global COVID-19 pandemic could negatively affect our business and results of operations, as well as the market price of our securities, in a number of ways, including the following:

In an effort to preserve liquidity, we expect to suspend or defer capital projects, as well as other strategic initiatives. Strategies to increase earnings power or generate additional cash flow, including acquisitions, divestitures and other transactions could be delayed or not materialize given the current economic uncertainty. In response to the COVID-19 pandemic, we could decide to permanently shut down machines or facilities and be required to record significant closure costs, long-lived asset impairments or accelerated depreciation charges.

The economic uncertainty resulting from the COVID-19 pandemic and the ensuing decline in financial market returns and low-interest rate environment could result in an increase in the amount by which our pension plans are underfunded by the next measurement date at year-end. This could result in a significant increase in the amount of our required future pension contributions, which could have an adverse effect on our financial condition.

If we don’t generate enough cash to fund our short-term or long-term obligations, we may have to draw further on our credit facilities to meet our obligations or seek additional sources of liquidity. The economic uncertainty resulting from COVID-19 and recent downgrades of our credit ratings could lead to greater difficulty in obtaining additional financing on favorable terms.

The COVID-19 pandemic, including governmental responses, broad economic impacts, market disruptions and changes in consumer habits, has heightened the risks related to the other risk factors described in our Annual Report on Form 10-K for December 31, 2019, and should be read in conjunction therewith.

Exhibits

99.1    Resolute Forest Products press release dated April 30, 2020 containing financial information for its quarter ended March 31, 2020.


Resolute Forest Products Inc. Exhibit
EX-99.1 2 d893788dex991.htm EX-99.1 EX-99.1 Exhibit 99.1   PRESS RELEASE US $ Resolute Reports Preliminary First Quarter 2020 Results     •   Q1 GAAP net loss of $1 million / $0.01 per share     •   Adjusted EBITDA of $32 million     •   Completed acquisition of three U.S. South sawmills     •   Operating all segments as essential services,…
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About RESOLUTE FOREST PRODUCTS INC. (TSE:RFP)

Resolute Forest Products Inc. offers a range of forest products, including market pulp, tissue, wood products, newsprint and specialty papers. The Company owns or operates over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea, as well as power generation assets in Canada. It operates through five segments: market pulp, tissue, wood products, newsprint and specialty papers. It also sells green power produced from renewable sources, wood chips and other wood related products to customers located in Canada and the United States. It produces market pulp at over seven facilities in North America, with total capacity of approximately 1.8 million metric tons. It produces tissue products at over two facilities in North America. It operates over 15 sawmills in Canada that produce construction-grade lumber sold in North America. It produces newsprint at over 10 facilities in North America and approximately one facility in South Korea.