Mercer International, Inc. (NASDAQ:MERC) Q1 2022 Earnings Conference Call April 29, 2022 10:00 AM ET
Company Participants
David Gandossi - President, CEO & Director
David Ure - EVP, CFO & Secretary
Conference Call Participants
Hamir Patel - CIBC Capital Markets
Andrew Kuske - Crédit Suisse
Andrew Shapiro - Lawndale Capital Management
Matthew McKellar - RBC Capital Markets
Kasia Kopytek - TD Securities
Operator
Good morning, and welcome to Mercer International's Fourth Quarter 2021 Earnings Conference Call. On the call today is David Gandossi, President and Chief Executive Officer of Mercer International; and David Ure, Senior Vice President, Finance, Chief Financial Officer and Secretary.
I will now hand the call over to David Ure.
David Ure
Good morning, everyone. I would like to remind you that in this morning's conference call, we will make forward-looking statements. And according to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, I'd like to call your attention to the risks related to these statements which are more fully described in our press release and in the company's filings with the Securities and Exchange Commission.
This quarter, we achieved record revenue and near-record EBITDA due to strong sales volumes and robust pricing for all of our products. Similar to Q4, we did not have any major maintenance in Q1, and our results also benefited from having the Rosenthal turbine running for most of the quarter.
Overall, our mills ran well this quarter, although our Peace River mill lost some production due to limitations of rail service to certain regions. To mitigate this issue, we've had to use extra trucking, which has the effect of increasing our freight and warehousing costs. As expected, we also experienced higher costs for several of our major inputs, including wood, energy and chemicals.
Our near-record EBITDA in the first quarter was almost $155 million compared to EBITDA of about $165 million in Q4 last year. As a reminder and to put our Q1 results into perspective, our record Q4 EBITDA result benefited from the recognition of almost $32 million of business interruption insurance proceeds related to the Peace River mill's recovery boiler repair.
Our pulp segment contributed quarterly EBITDA of roughly $114 million, and our wood products segment contributed near-record quarterly EBITDA of $44 million. You can find additional segment disclosures in our Form 10-Q, which can be found on our website and that of the SEC.