Ainsworth Lumber Co. Ltd. releases 1st quarter results.VANCOUVER, British Columbia--(BUSINESS WIRE)--May 15, 1997-- AINSWORTH LUMBER CO. LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;VSE See DOS/VSE. VSE - Virtual Storage Extended :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). ) reports a net loss for the three months ended March 31, 1997 of $5.7 million ($0.39 per share) compared to a loss of $0.8 million ($0.06 per share) for the 3 months ended March 31, 1996. Sales for the three month period ended March 31, 1997 (the "1997 First Quarter") were $70.5 million compared to $63.0 million for the three month period ended March 31, 1996 (the "1996 First Quarter"). Cost of products sold for the 1997 First Quarter were $67.0 million compared to $55.7 million for the 1996 First Quarter. During the 1997 First Quarter cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , before changes in non-cash working capital, was ($0.4) million compared to $7.9 million for the 1996 First Quarter. Lumber Sales of lumber for the 1997 First Quarter compared to the 1996 First Quarter increased 11 percent, as prices averaged 19 percent higher while unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. volume decreased by 6 percent primarily due to production curtailments and reduced sales to 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. in response to export fees imposed by the Canada/U.S. Softwood softwood Timber obtained from coniferous trees (mainly of the pine and fir families). With the exception of bald cypress, tamarack, and larch, softwood trees are evergreens. Lumber Agreement. Production costs for the quarter were on budget. Log costs increased as anticipated due to increased stumpage stump·age n. 1. Standing timber regarded as a commodity. 2. The value of standing timber. 3. The right to cut standing timber. stumpage 1. charges, harvesting and other costs associated with compliance with the Forest Practices Code. OSB OSB abbr. Order of Saint Benedict Sales of OSB for the 1997 First Quarter compared to the 1996 First Quarter increased 35 percent. This increase was due to a 97 percent increase in unit sales volume, partially offset by an average price decline of 31 percent. The increased unit volume was due to the continuing production ramp-up at the 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. mill which was running at approximately 85 percent of rated capacity by the end of the first quarter of 1997. Production at the Grande Prairie mill is continuing to improve and is expected to achieve full capacity by the end of the year. Diversification of the product mix with a focus on export and industrial products is continuing. This facility, one of the largest in the world, will achieve low production costs due to significant economies of scale. Unit production costs will continue to drop as the mill approaches rated capacity. Production at the 100 Mile mill was at full capacity and on budget. Low OSB prices resulted in the Grande Prairie mill incurring significant operating losses which are included in the operating results for the quarter. The 100 Mile mill operated at break even as it is able to mitigate low domestic prices by selling higher margin export and industrial products. Veneer and Specialty Plywood Operating results were positive during the quarter due to strong veneer prices and continuing steady prices for overlaid o·ver·laid v. Past tense and past participle of overlay1. plywood. Veneer production was down due to an unauthorized 7 day work stoppage in January. Operating costs operating costs npl → gastos mpl operacionales were on budget. Chips Sales revenue from chips was 50 percent lower in the 1997 First Quarter compared to the 1996 First Quarter due entirely to lower chip prices. Outlook Ongoing high log costs and low chip prices are expected to continue to impact earnings for the balance of the year. The second and third quarters should see increasing demand for OSB in domestic markets with a corresponding modest improvement in domestic OSB prices. The Company's focus on industrial and export markets for OSB should partially offset low domestic OSB prices. The outlook for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. lumber market is for continuing strong prices through the construction season. Export markets for lumber and OSB are forecast to be strong. Ainsworth Lumber has operated as a solid wood forests products company in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography for more than 45 years. In addition to its sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which and OSB plant at 100 Mile House, the Company operates a sawmill near Clinton, a veneer plant at Lillooet, a plywood plant at Savona, a value-added plant at Abbotsford and an OSB plant at Grande Prairie, Alberta “Grande Prairie” redirects here. For the city in Texas, see Grand Prairie, Texas. Grande Prairie is the main city in the northwestern part of the province of Alberta in Western Canada. . -0-
AINSWORTH LUMBER CO. LTD.
Supplemental Information
3 months ended March 31, 1997 1996
(in thousands of dollars) unaudited
Sales $70,543 $63,000
________ ________
Cost of products sold 67,016 55,737
Depreciation and amortization 6,574 4,066
Selling, general and administration 2,852 2,824
________ ________
76,442 62,627
________ ________
Earnings from operations (5,899) 373
Other income 409 90
________ ________
(5,490) 463
Interest and financing expense 3,364 1,804
________ ________
Earnings before income taxes (8,854) (1,341)
Income taxes (recovery) (3,149) (523)
________ ________
Net earnings $(5,705) $(818)
________ ________
________ ________
Net earnings per common share (in dollars) $(0.39) $(0.06)
________ ________
________ ________
Weighted average common
shares outstanding (000's) 14,545 14,560
________ ________
________ ________
Other Information
Cash from (used for) operations (Note 1) $(395) $7,853
Additions to capital assets $3,714 $17,339
Total assets $416,662 $418,999
Shareholders' equity $108,919 $120,245
Product Sales
OSB $29,542 $21,777
Lumber 23,866 21,450
Plywood 12,007 10,407
Veneer 2,455 4,142
Chips 2,673 5,224
________ ________
$70,543 $63,000
________ ________
________ ________
Product Sales Volumes
OSB (msf-3/8") 184,569 93,670
Lumber (mfbm) 51,712 55,164
Plywood (msf-3/8") 20,605 17,657
Veneer (msf-3/8") 11,507 20,774
Chips (BDUs) 44,410 44,276
Note 1: before changes in non-cash operating working capital
CONTACT: Ainsworth Lumber Co. Ltd. Catherine Ainsworth, 604/ 661-3200 or Ainsworth Lumber Co. Ltd. Steven Blacklock, 604/ 661-3200 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion