1Q results include a gain of $8.5 million on business interruption, partially offset by transaction costs of $1.6 million related to the take-over bid for the Company by ET Acquisition Corporation, a corporation indirectly owned by funds managed by Kelso & Company. In the corresponding quarter of 2012, the Company recorded a gain of $14.3 million on disposal of property, plant and equipment destroyed by fire.
The Company recorded sales of $71 million for the quarter ended March 31, 2013, up 18% against sales of $60.4 million in the previous quarter and sales of $60 million in the corresponding quarter of 2012.
EACOM Timber recorded a negative adjusted EBITDA of $855,000 for the quarter ended March 31, 2013, against a positive adjusted EBITDA of $3.2 million in the previous quarter and a negative adjusted EBITDA of $5.4 million in the corresponding quarter of 2012.
During the quarter, the Company shipped 128 million board feet of lumber (120 million board feet in the previous quarter and 128 million board feet in the corresponding quarter of 2012) and 120,000 oven-dried metric tons of by-products (110,000 oven-dried metric tons in the previous quarter and 120,000 oven-dried metric tons in the corresponding quarter of 2012). Compared to the previous quarter and the corresponding quarter of 2012, shipments reflect higher production volumes.
The business activities of EACOM Timber Corporation consist of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value-added products, and the management of forest resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures.
