Catalyst reported a net loss, excluding specific items, of $10.4 million in 4Q compared to $10.8 million in 3Q. Operating results were impacted by increased manufacturing expenses, including higher rates for electricity, as well as costs related to the indefinite curtailment of Paper Machine No. 9 at the Powell River mill, and the acquisition of the Biron paper mill in Wisconsin and the Rumford pulp and paper mill in Maine.
"Our results reflect critical decisions to position the company effectively for the future," said Joe Nemeth, Catalyst President & CEO. "In 4Q, we incurred one-time costs and made strategic investments that will enable us to optimize our product mix and performance, while continuing to focus on cost, productivity, efficiency and customer service."
Adjusted EBITDA was $47.6 million in 2014 compared to $46.1 million in 2013. Excluding specific items, our net loss was $28.3 million in 2014 compared to $31.5 million in 2013. Free cash flow was negative $17.2 million compared to negative $21.4 million in 2013.
After normalizing for non-recurring items, adjusted EBITDA increased by $8.9 million compared to the prior year.
"Where we applied a sharp focus on operational excellence, we made substantive progress," said Joe Nemeth. "As we look ahead to 2015, we expect continued improvement as we work diligently to realize the benefits of our US acquisition, revitalize our Powell River operations and consistently apply the operational excellence principles that have enabled our financial recovery."
Catalyst manufactures diverse specialty mechanical printing papers, newsprint and pulp.