Catalyst Paper's 3Q sales down 7.4% year-over-year to C$502.7 million ($374.8 million), compared to C$$542.6 million ($404.5 million) in 3Q 2015. EBITDA was $31.9 million ($23.8 million) and adjusted EBITDA before specific items was $35.3 million ($26.3 million) in the 3Q.

Wood Pulp

Catalyst Paper's 3Q sales down 7.4% year-over-year to C$502.7 million ($374.8 million)

Catalyst Paper Corporation reported significantly improved operating results for the quarter ended September 30, 2016 despite a non-cash impairment write-down of $186.4 million ($139 million) on fixed assets at its Powell River, Port Alberni and Crofton paper mills resulting in a $185 million ($138 million) net loss in the quarter.

Catalyst Paper's 3Q sales down 7.4% year-over-year to C$502.7 million ($374.8 million), compared to C$$542.6 million ($404.5 million) in 3Q 2015.

Excluding the non-cash impairment write-down and other significant items in the quarter, Catalyst reported net earnings before these items of $7.6 million. This compared to a net loss of $26.6 million ($19.8 million) and a net loss before specific items of $27.3 million ($20.3 million) in the previous quarter.

Other significant specific items in the quarter included $3.1 million ($2.3 million) in professional fees and duties related to the countervailing duty on exports to the United States of supercalendered paper and a $2.8 million ($2 million) foreign exchange loss on U.S. dollar denominated debt.

Adjusted Earnings Before Interest Tax Depreciation and Amortization (EBITDA) was $31.9 million ($23.8 million) and adjusted EBITDA before specific items was $35.3 million ($26.3 million) in the 3Q. This compares to adjusted EBITDA of negative $5.3 million ($4 million) and adjusted EBITDA before specific items of negative $1.1 million ($0.8 million) in the previous quarter.

Year-to-date adjusted EBITDA of $43.7 million ($32.6 million) was $10.1 million ($7.5 million) higher than the $33.6 million ($25 million) adjusted EBITDA reported in the same period last year.

In the 3Q, the company generated free cash flow of $9.8 million ($7.3 million). The liquidity at quarter end was $77.5 million ($57.8 million).

“We improved our operating financial performance,” said Joe Nemeth, President & CEO. “The improvement in performance includes step change cost reduction while simultaneously growing the top line to provide Catalyst sustainable earnings levels.”

Catalyst Paper manufactures diverse papers such as coated freesheet, coated one side (C1S), flexible and industrial packaging, coated and uncoated groundwood, newsprint, directory, as well as market pulp.