Ainsworth Announces Record Operating Earnings for First Quarter 2004.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--May 7, 2004 Ainsworth Ainsworth redid dictionary manuscript burnt in fire. [Br. Hist.: Brewer Handbook, 752] See : Perseverance Lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to Co. Ltd. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ANS (ANS Communications, Inc, Purchase, NY) An ISP, Internet backbone and provider of private data network services, founded in 1990 as Advanced Network & Services, Inc., by IBM, MCI and Merit (consortium of Michigan universities). ):
---------------------------------------------------------------------
(C$ millions, except per
share data) Three months ended March 31
---------------------------------------------------------------------
2004 2003
---------------------------------------------------------------------
Sales 174.7 91.2
Operating earnings 91.0 16.2
Foreign exchange gain (loss) on long-term debt (5.6) 30.9
Net Income (loss) (19.8) 26.1
Earnings (loss): $ per share (1.36) 1.80
EBITDA (1) 104.4 24.8
Cash flow from operations (2) 45.0 (22.1)
---------------------------------------------------------------------
(1) EBITDA, a non-GAAP financial measure, represents operating
earnings before amortization, plus interest and other income.
(2) Cash provided by operations after changes in non-cash working
capital.
Ainsworth Lumber Co. Ltd. (TSX:ANS) today reported record results for the quarter ended March 31, 2004. The company had quarterly operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $91.0 million for the first three months of 2004 compared to $16.2 million in the same period of 2003. This sharp increase was largely due to very strong markets for oriented strand board Oriented strand board, or OSB, or waferboard, or Sterling board (UK), is an engineered wood product formed by layering strands (flakes) of wood in specific orientations. (OSB OSB abbr. Order of Saint Benedict ). First quarter sales of $174.7 million were $83.5 million or 91.6% higher than the first quarter of 2003 due to considerably higher OSB prices and increased OSB shipments. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , defined as operating earnings before amortization plus interest and other income, for the quarter was $104.4 million compared to $24.8 million in the same period last year. Despite the fact that the company generated record operating earnings and EBITDA during the first three months of 2004, the company's net income was negatively affected by a $106.2 million one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. cost associated with the refinancing Refinancing An extension and/or increase in amount of existing debt. of its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The charge to earnings associated with the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of long term debt is comprised of a $15.8 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred financing costs, an $83.5 million redemption premium redemption premium See call premium. , and payment of consent fees of $7.2 million. Net income was also affected by a $5.7 million foreign exchange loss on US-dollar denominated debt. Ainsworth's net loss during the quarter was $19.8 million or $1.36 per share compared to net income of $26.1 million or $1.80 per share in the first quarter of 2003. Cash provided by operations (after changes in non-cash working capital) during the quarter was $45.0 million compared to cash used by operations of $22.1 million in the first quarter of 2003. Ainsworth had a cash balance of $60.6 million at March 31, 2004 compared to $194.1 million at December December: see month. 31, 2003 and $57.0 million at March 31, 2003. "We are very encouraged about the continued strength in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. homebuilding and we expect that OSB demand and pricing will remain strong in the near term. The record-high OSB pricing that we have experienced over the past several months has positioned the company well, enabling us to complete our refinancing in March and to pursue the acquisition of Voyageur voy·a·geur n. pl. voy·a·geurs A woodsman, boatman, or guide employed by a fur company to transport goods and supplies between remote stations in Canada or the U.S. Northwest. Panel," said Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Ainsworth, Chairman and Chief Executive Officer. The company will hold a conference call in the near future, at which management will review the company's first quarter performance and discuss the outlook for our business. A press release will provide conference call details once the specific timing has been determined. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's expectations regarding OSB demand and pricing are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. When used herein, words such as "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions made by and information available to Ainsworth Lumber Co. Ltd. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward looking statements include, without limitation, the future demand for, and sales volumes of, the Company's products, future production volumes, efficiencies and operating costs operating costs npl → gastos mpl operacionales , increases or decreases in the prices of the Company's products, the Company's future stability and growth prospects, the Company's future profitability and capital needs, including capital expenditures, and the outlook for and other future developments in the Company's affairs or in the industries in which the Company participates and factors detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission, and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Ainsworth Lumber Co. Ltd. has operated as a forest products company in Western Canada
Western Canada, commonly referred to as the West for over 50 years. The company's facilities have a total annual capacity of 1.5 billion square feet (3/8" basis) of oriented strand board (OSB), 155 million square feet of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. overlaid o·ver·laid v. Past tense and past participle of overlay1. plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. , and 55 million board feet of lumber. In Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. , its operations include an OSB plant at Grande Prairie Grande Prairie (Fr. gräNd prâ'rē`), city (1991 pop. 28,271), W Alta., Canada, NW of Edmonton. It is the chief business center for the Peace River valley farming area. and a one-half interest in the Footner OSB plant at High Level. In B.C., its operations include an OSB plant at 100 Mile House, a veneer veneer (vənēr`), thin leaf of wood applied with glue to a panel or frame of solid wood. The art of veneer developed with early civilization. plant at Lillooet Lillooet may refer to:
Australia
Ainsworth Lumber Co. Ltd.
Suite 3194, Bentall 4
P.O. Box 49307
1055 Dunsmuir Street
Vancouver, B.C. V7X 1L3
AINSWORTH LUMBER CO. LTD.
Consolidated Balance Sheets
(In thousands of dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
March 31 December 31
2004 2003
---------------------------------------------------------------------
Unaudited Audited
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 60,570 $ 194,054
Accounts receivable, net of allowance for
doubtful accounts of $320 (2003 - $542) 49,320 30,242
Inventories 69,143 53,153
Investment tax credit recoverable 30,060 30,060
Prepaid expenses 2,176 3,433
---------------------------------------------------------------------
211,269 310,942
CAPITAL ASSETS 286,950 293,502
OTHER ASSETS 16,307 23,277
---------------------------------------------------------------------
$ 514,526 $ 627,721
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 16,300 17,985
Accrued liabilities 16,422 29,776
Income taxes payable 603 3,494
Current portion of long term debt (Note 2) 226 250
---------------------------------------------------------------------
33,551 51,505
REFORESTATION OBLIGATION 5,213 4,802
LONG TERM DEBT (Note 2) 281,303 352,227
FUTURE INCOME TAXES 39,824 47,396
---------------------------------------------------------------------
359,891 455,930
---------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock (Note 3) 55,868 53,110
Contributed surplus - 118
Retained earnings 98,767 118,563
---------------------------------------------------------------------
154,635 171,791
---------------------------------------------------------------------
$ 514,526 $ 627,721
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying Notes to the Interim Consolidated Financial
Statements are an integral part of these statements.
Approved by the Board:
Catherine Ainsworth Allen Ainsworth
DIRECTOR DIRECTOR
AINSWORTH LUMBER CO. LTD.
Consolidated Statements of Operations and Retained Earnings
(In thousands of dollars, except per share data) Unaudited
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended March 31
---------------------------------------------------------------------
2004 2003
---------------------------------------------------------------------
SALES $ 174,700 $ 91,165
---------------------------------------------------------------------
COSTS AND EXPENSES
Costs of products sold 70,286 62,723
Selling and administration 5,116 4,113
Amortization of capital assets 8,314 8,163
---------------------------------------------------------------------
83,716 74,999
---------------------------------------------------------------------
OPERATING EARNINGS 90,984 16,166
FINANCE EXPENSE
Interest charges (10,388) (13,782)
Amortization charges (861) (1,192)
Loss on repurchase of long term debt (106,198) -
---------------------------------------------------------------------
(117,447) (14,974)
OTHER INCOME 5,058 468
FOREIGN EXCHANGE (LOSS) GAIN; LONG TERM DEBT (5,682) 30,909
---------------------------------------------------------------------
(LOSS) INCOME BEFORE INCOME TAXES (27,087) 32,569
INCOME AND LARGE CORPORATION TAX
EXPENSE (RECOVERY) (7,291) 6,451
---------------------------------------------------------------------
NET (LOSS) INCOME (19,796) 26,118
RETAINED EARNINGS (DEFICIT),
BEGINNING OF PERIOD 118,563 (5,087)
---------------------------------------------------------------------
RETAINED EARNINGS, END OF PERIOD $ 98,767 $ 21,031
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic and diluted (loss) earnings per share $ (1.36) $ 1.80
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying Notes to the Interim Consolidated Financial
Statements are an integral part of these statements.
AINSWORTH LUMBER CO. LTD.
Consolidated Statements of Cash Flows
(In thousands of dollars) Unaudited
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended March 31
---------------------------------------------------------------------
2004 2003
---------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (19,796) $ 26,118
Amounts not requiring an outlay of cash
Amortization of capital assets 8,314 8,163
Amortization of financing costs 472 629
Amortization of debt discount 144 209
Amortization of consent and commitment fees 245 441
Foreign exchange loss (gain);
long term debt 5,682 (30,909)
Loss on repurchase of long term debt 106,198 -
Non-cash stock-based compensation 2,640 -
(Gain) loss on disposal of capital assets (11) 7
Change in non-current
reforestation obligation 411 704
Future income taxes (7,572) 6,096
Change in non-cash operating
working capital (51,741) (33,580)
---------------------------------------------------------------------
44,986 (22,122)
---------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on Issuance of
Senior Unsecured Notes 281,148 -
Financing costs (5,995) -
Repurchase of Senior Secured Notes (451,305) -
Decrease in capital lease obligations (68) (11)
---------------------------------------------------------------------
(176,220) (11)
---------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to capital assets (1,765) (1,879)
(Increase) decrease in other assets (499) 777
Proceeds on disposal of capital assets 14 13
---------------------------------------------------------------------
(2,250) (1,089)
---------------------------------------------------------------------
NET CASH OUTFLOW (133,484) (23,222)
CASH, BEGINNING OF PERIOD 194,054 80,195
---------------------------------------------------------------------
CASH, END OF PERIOD $ 60,570 $ 56,973
---------------------------------------------------------------------
---------------------------------------------------------------------
The accompanying Notes to the Interim Consolidated Financial
Statements are an integral part of these statements.
AINSWORTH LUMBER CO. LTD.
Notes to the Interim Consolidated Financial Statement
Three month periods ended March 31, 2004 and 2003
Figures in tables are in thousands, unless otherwise indicated.
(Unaudited)
---------------------------------------------------------------------
1. BASIS OF PRESENTATION The Company's accounting policies are in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . These accounting policies are consistent with those outlined in the annual audited financial statements. These interim unaudited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge do not include all disclosures normally provided in annual financial statements and accordingly, should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's audited financial statements for the year ended December 31, 2003. In management's opinion, these unaudited interim consolidated financial statements include all adjustments (consisting solely of normal recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. adjustments) necessary to present fairly such information. The results of operations for the interim periods are not necessarily indicative indicative: see mood. of the results to be expected in future periods. 2. LONG TERM DEBT On March 3, 2004, the Company completed a refinancing of its Senior Secured Notes and issued US$210 million 6.75% Senior Unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. Notes. Together with its existing cash balance, the Company utilized the proceeds from the notes to repurchase US$87.1 million of its 13.875% notes and US$182.2 million of its 12.5% notes realizing a total loss of $106.2 million. The loss is comprised of a $15.8 million write-off of deferred financing costs, an $83.5 million redemption premium, and payment of consent fees of $7.2 million. The details of the outstanding long term debt at March 31, 2004 is as follows:
U.S.$210,000,000 Senior Unsecured Notes due March 15, 2014
with interest payable semi-annually at 6.75% per annum $ 275,373
U.S.$2,351,000 Senior Unsecured Notes due July 15, 2007
with interest payable semi-annually at 12.5% per annum 3,083
U.S.$2,000,000 Senior Unsecured Notes due July 15, 2007 with
interest payable quarterly at 13.875% per annum 2,623
Capital lease obligations 482
---------------------------------------------------------------------
281,561
Unamortized deferred debt discount (32)
---------------------------------------------------------------------
281,529
Current portion (226)
---------------------------------------------------------------------
$ 281,303
---------------------------------------------------------------------
---------------------------------------------------------------------
On March 15, 2004, the Company established a $50,000,000 revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with interest rates of prime plus 0.5% or the bankers' acceptance A bankers' acceptance, or BA, is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the rate plus 2.0%. At March 31, 2004 this facility was unutilized. 3. CAPITAL STOCK On March 29, 2004, the Company issued 95,116 common shares to the holders of 107,500 Class B common shares issued on June June: see month. 25, 1999 who became entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: under the Employee Participation Share Plan to receive common shares in exchange for those Class B common shares. As at March 31, 2004, there are no issued and outstanding Class B common shares. 4. SUBSEQUENT EVENT On April 14, 2004, the Company announced that it had reached an agreement with the shareholders of Voyageur Panel Limited to buy all of the outstanding shares of Voyageur Panel Limited for a purchase price of US$193,000,000 (subject to adjustment upon closing), plus an additional amount of up to US$10,000,000 based on OSB prices between closing the transaction and December 31, 2004. The transaction is expected to close in the second quarter of 2004.
AINSWORTH LUMBER CO. LTD.
Other Information
---------------------------------------------------------------------
March 31, 2004 March 31, 2003
---------------------------------------------------------------------
Selected Balance Sheet Items ($000's)
Cash $ 60,570 $ 56,973
Total assets $ 514,526 $ 542,845
Total debt $ 281,529 $ 409,668
Shareholders' equity $ 154,635 $ 74,489
Three Months ended March 31
---------------------------------------------------------------------
Reconciliation of Net Income (loss)
to EBITDA ($000's) 2004 2003
---------------------------------------------------------------------
Net Income (loss) $ (19,796) $ 26,118
Add: Depreciation and amortization 8,314 8,163
Finance expense 117,447 14,974
Write-down of capital assets - -
Income and large corporation
tax expense (recovery) (7,291) 6,451
Unrealized foreign exchange
(gain) loss 5,682 (30,909)
---------------------------------------------------------------------
EBITDA (Note 1) $ 104,356 $ 24,797
---------------------------------------------------------------------
---------------------------------------------------------------------
Product Sales ($000's)
OSB $ 150,603 $ 68,811
Plywood 21,058 18,015
Veneer 2,196 2,973
Lumber - 784
Chips 844 582
---------------------------------------------------------------------
$ 174,700 $ 91,165
---------------------------------------------------------------------
---------------------------------------------------------------------
Geographic Sales Distribution ($000's)
Canada $ 26,185 $ 19,121
USA 137,865 64,264
Europe 2,262 2,350
Asia 8,388 5,430
---------------------------------------------------------------------
$ 174,700 $ 91,165
---------------------------------------------------------------------
---------------------------------------------------------------------
Product Shipment Volumes
OSB (msf-3/8") 361,571 324,168
Plywood (msf-3/8") 34,835 30,483
Veneer (msf-3/8") 10,701 14,289
Lumber (mfbm) - 2,053
Chips (BDUs) 9,721 9,242
Production Volumes
OSB (msf-3/8") 346,271 327,303
Plywood (msf-3/8") 37,500 30,325
Veneer (msf-3/8") (Note 2) 50,099 50,294
Lumber (mfbm) - -
Chips (BDUs) 9,721 9,242
Note 1: EBITDA, a non-GAAP financial measure, is defined as operating
earnings before amortization, plus interest and other income.
Note 2: includes transfer volumes to Savona (for plywood production)
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion