Already Rolland Profits From its Acquisition of Provincial Papers Inc. (Part 1 of 2 - Financial Tables Will Follow).MONTREAL--(BUSINESS WIRE)--July 21, 1997-- ROLLAND(ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). RL ) Rolland Inc. increases its profitability owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the contribution of Provincial Papers Inc. Rolland announces net earnings for the quarter ended June 30, 1996 of $2,310,000 ($0.30 per common share) compared to $1,970,000 ($0.26 per common share) for the corresponding period in 1996. Net earnings for the six-month period ended June 30, 1997 amount to $3,874,000 ($0.50 per common share) compared to $3,824,000 ($0.50 per common share) for the corresponding period in 1996. These results, qualified as very interesting by Mr. Yvan Duchesne, President and Chief Executive Officer of the Corporation, are mainly due to the contribution of the Fine Papers Division (the Saint-Jerome mill) and our new subsidiary, Provincial Papers Inc., whose acquisition was completed as planned on April 30, 1997. Desencrage Cascades, however, continues to be affected by the very difficult deinked pulp market conditions, including low sales prices which deinked pulp producers have to deal with. The results of the Distribution Division are negative for a second quarter in a row due to inventory devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. , competitive pressures to lower prices and costs associated with its expansion across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. . On that subject, it must be noted that the distribution centres in Edmonton and Calgary respectively opened for business during the months of March and May 1997, while a new distribution centre will open its doors in August in Dartmouth, Nova Scotia Dartmouth (2001 pop.: 65,741[0]), founded in 1750, is a community and planning area of the Halifax Regional Municipality, a provincially designated Metropolitan Area, and a former city in the Canadian province of Nova Scotia. . Sales With the contribution of Provincial Papers Inc. for the months of May and June and the new distribution centres in Western Canada
Western Canada, commonly referred to as the West , including Barkwell Paper of Winnipeg, Manitoba acquired in February 1997, sales increased 38 percent from $98,447,000 for the quarter ending June 30, 1996 to$135,758,000 for the corresponding period in 1997. Sales of $243,414,000 for the period were higher by 16 percent compared to $210,636,000 in 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. Operating income for the second quarter also increased reaching $4,937,000 in 1997 compared to $4,082,000 in 1996. For the period ending June 30, 1997, operating income reached $8,643,000 compared to $7,944,000 for the corresponding period in 1996. While the Fine Papers Division was able to maintain its margins due to increased shipments of added-value papers and increased productivity, Desencrage Cascades and the Distribution Division have continued to show operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. mainly as a result of low prices. Changes in Financial Position Rolland generated 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 of $4,492,000 ($0.59 per common share) for the second quarter of 1997 compared to $3,437,000 ($0.45 per common share) for the same period in 1996. For the first semester se·mes·ter n. One of two divisions of 15 to 18 weeks each of an academic year. [German, from Latin (cursus) s cash flow from operations reached $7,791,000 ($1.02 per common share) compared to $6,888,000 ($0.90 per common share) for the corresponding period in 1996. Non-cash working capital items used $5,497,000 due to increased inventories at the Saint-Jerome mill and to the openings of the new distribution centres. The Corporation also invested $4,065,000 in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) to maintain and increase its production facilities. Moreover, on April 30, 1997, Rolland acquired, through a subsidiary for a consideration of $26,000,000, all of the issued and outstanding shares of Provincial Papers Inc. Following this transaction, the Corporation had to absorb Provincial Papers Inc.'s negative liquidities of $5,301,000. This acquisition was financed through a bank loan of $20,300,000. As of June 30, 1997, the banking indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of the Corporation including its subsidiary, Provincial Papers Inc., reached $80,198,000 compared to $22,549,000 for the corresponding period in 1996. The acquisition of Provincial Papers and the expansion of the Distribution Division network in Western Canada are the main reasons for the increase in the bank indebtedness. 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. was reduced to $31,642,000 as of June 30, 1997 from $34,977,000 at the end of the second quarter of 1996. Dividend on the Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. At its meeting of July 21, 1997, the Board of Directors declared a quarterly dividend of $1.0625 per preferred share, payable September 15, 1997 to shareholders of record on August 29, 1997. Outlook For the second semester of 1997, Rolland should continue to increase its profitability owing to the contribution of Provincial Papers Inc. During that period, the Fine Papers Division should be able to maintain its margins, while increasing its output. Desencrage Cascades will continue to operate in a difficult environment. However, following recently announced price increases for virgin pulp, we anticipate that prices for deinked pulp will follow this trend. For the Distribution Division, we forecast improved results in the third quarter with a return to profitability in the fourth quarter. The improvement will stem from better price stability and cost restructuration. It should be noted that as of July 21, except for Barkwell Paper and Roll-O-Vert, the Distribution Division will change its name to Ressources Graphiques in Quebec and Graphic Resources elsewhere in Canada. CONTACT: Rolland inc. Mr. Yvan Duchesne, 514/ 569-3907 or Cascades Group Mr. Stephane Milot, 514/ 282-2681 smilot@cascades.com |
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