Alliance Forest Products Inc. - 1997 First Quarter Results.MONTREAL--(BUSINESS WIRE)--April 23, 1997--ALLIANCE(ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ALP (language) ALP - A list processing extension of Mercury Autocode. ["ALP, An Autocode List-Processing Language", D.C. Cooper et al, Computer J 5:28-31, 1962]. ) Alliance Forest Products Inc. recorded net earnings of $0.9 million ($0.05 per common share) during the quarter ended March 31, 1997, compared with $20.6 million ($1.18 per common share) for the quarter ended March 31, 1996. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the period was $2.2 million, compared with $29.8 million in 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight reached $95.2 million, compared with $112.5 million for last year's first quarter. "These results are mainly due to decreased paper prices, especially newsprint, which declined to US$500 at the beginning of 1997 from US$700 per tonne at the beginning of 1996," said Pierre Monahan, President and Chief Executive Officer of Alliance Forest Products Inc. "Many producers registered losses because of this situation, while Alliance Forest Products managed to compensate for part of the negative effect with its lumber sales, where demand remains firm." Capital expenditures during the quarter amounted to $26.4 million, compared with $19.9 million for the corresponding quarter of 1996. Most of these expenditures went toward continuing work to convert part of the paper production to soft-nip calendered cal·en·der n. A machine in which paper or cloth is made smooth and glossy by being pressed through rollers. tr.v. cal·en·dered, cal·en·der·ing, cal·en·ders papers and to the building of the cogeneration plant at Dolbeau. On March 27, Alliance Forest Products Inc. completed the acquisition of production facilities and woodlands in Alabama. The Coosa Pines facilities include a paper mill with a production capacity of about 393,000 tonnes, including more than 300,000 tonnes of newsprint; a pulp mill A pulp mill is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing. with a production capacity of 270,000 tonnes of market pulp; a 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 167,000 hectares of woodlands, including 150,000 owned. "This acquisition fits in with Alliance Forest Products Inc.'s growth strategy and doubles our size," Mr. Monahan said. "Aside from significant fibre supply, Coosa Pines provides a considerable increase in capacity and an expanded production network from which the Company can serve a larger client base." These assets were purchased from Kimberly- Clark Corporation for US$602.7 million. In April, Dominion Bond Rating Services (DBRS DBRS Dominion Bond Rating Service ) upgraded the Company's credit rating to BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. low and Canadian Bond Rating Services confirmed its B++ rating. Alliance Forest Products Inc. is an integrated company specializing in timber harvesting and forest management, as well as in the production and sale of pulp, newsprint, uncoated groundwood papers, lumber and related products. The Company has operations in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. . The common shares of Alliance Forest Products Inc. are listed on the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg and the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol ALP. -0-
Alliance Forest Products Inc.
Summary of financial statements
(Unaudited - In millions of dollars,
except for amounts per share)
Quarter ended
March 31
1997 1996
_______________________
Consolidated Earnings
_____________________
Sales 95.2 112.5
Operating income 2.2 29.8
Net financing expenses 0.6 0.4
Earnings before income taxes 1.6 29.4
Net earnings 0.9 20.6
Net earnings per common share 0.05 1.18
Consolidated Changes in Cash Resources
______________________________________
Working capital provided by
operations 7.5 26.9
Changes in non-cash working capital
items 3.8 (21.5)
Cash provided by operations 11.3 5.4
Working capital provided by
operations per share 0.40 1.54
Cash used for investing activities (896.6) (19.9)
Cash provided by (used for)
financing 940.6 (8.7)
March 31, 1997 March 31, 1996
_______________ _______________
Consolidated Balance Sheet
__________________________
Total assets 1,444.1 419.2
Long-term debt 434.6 5.6
Total liabilities 535.8 103.8
Shareholders' equity 908.4 315.4
CONTACT: Alliance Forest Product Inc. Dino Fuoco, 514/954-2118 http://www. Alliance-Forest.com |
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