“The Company generated a positive adjusted EBITDA of $3.4 million in the 4Q and $2.5 million in 2012. Current lumber markets have improved due to a stronger U.S. housing market. In 2013, the Company will focus on its cost reduction efforts to increase productivity and improve recovery”, stated Rick Doman, President and CEO.
For the year ended December 31, 2012, net earnings attributable to shareholders amounted to $4.3 million or $0.01 per common share, against a net loss of $47.4 million or $0.10 per common share in 2011. The 2012 results include a gain of $15.2 million on disposal of property, plant and equipment destroyed by fire whereas the 2011 results included an impairment charge of $15million, partially offset by a gain of $4.3 million on the sale of the Big River mill and a $3.8 million recovery of income taxes.
In 2012, EACOM Timber recorded sales of $249 million, down 11% against sales of $280 million in 2011. The Company's sales include both lumber and by-product sales. In 2012, the Company shipped 506 million board feet of lumber (621 million board feet in 2011) and 476,000 oven-dried metric tons of by-products (568,000 oven-dried metric tons in 2011). Compared to 2011, shipments reflect lower production volumes.
For the quarter ended December 31, 2012, the net loss attributable to shareholders amounted to $388,000 or $0.00 per common share, against a net loss of $964,000 or $0.00 per common share in the previous quarter and a net loss of $27 million or $0.06 per common share in the corresponding quarter of 2011. In the corresponding quarter of 2011, EACOM Timber recorded an impairment charge of $15 million.
The Company recorded a positive adjusted EBITDA of $3.4 million for the 4Q ended December 31, 2012, against a positive adjusted EBITDA of $1.5 million in the previous quarter and a negative adjusted EBITDA of $8.6 million in the corresponding quarter of 2011.
For the quarter ended December 31, 2012, EACOM Timber recorded sales of $60.4 million, down 5% against sales of $63.4 million in the previous quarter and 11% against sales of $67.4 million in the corresponding quarter of 2011.
During the quarter, the Company shipped 120 million board feet of lumber (125 million board feet in the previous quarter and 156 million board feet in the corresponding quarter of 2011) and 110,000 oven-dried metric tons of by-products (127,000 oven-dried metric tons in the previous quarter and 129,000 oven-dried metric tons in the corresponding quarter of 2011).
Compared to the previous quarter and the corresponding quarter of 2011, shipments reflect lower production volumes and inventory changes.
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.
