Adjusted EBITDA was $24.4 million in the 3Q 2013 compared to $37 million in the same period of 2012.
Net income from continuing operations in the 3Q 2013 was $10.7 million compared to $32.5 million in the 3Q 2012. The $21.8 million decrease was due to a reduction in gross profit, increased costs of curtailed operations related to the start-up of the High Level mill, and a loss on the optional repayment of 10% of our senior notes, partially offset by a reduction in finance expense, and fluctuations in non-cash accounting gains and losses and income tax expense.
Ainsworth President and CEO, Jim Lake said, "While lower OSB prices caused our results to decline versus the previous quarter, we generated adjusted EBITDA of $24.4 million in the 3Q 2013, bringing our year to date adjusted EBITDA to $137.6 million. We also continued to experience growth in our export markets, and are pleased to report that we have recommenced commercial operations at our High Level mill."
In the first nine months of 2013, sales were $383.7 million compared to $291.2 million in the same period of 2012. The $92.5 million increase was related to a 40% increase in realized pricing, partially offset by a 1.8% decrease in sales volumes.
Adjusted EBITDA for the year to date was $137.6 million in 2013 compared to $63.5 million in 2012.
Net income from continuing operations in the first nine months of 2013 was $50 million, compared to $21.7 million for the same period in 2012, representing an increase of $28.3 million. The increase included an increase in gross profit, and a decrease in finance expense, partially offset by increased costs of curtailed operations, and fluctuations in non-cash accounting gains and losses and income tax expense.
Adjusted EBITDA margin on sales for the 3Q 2013 was 21.3% compared to 32% in the 3Q 2012 (35.9% in the first nine months of 2013 compared to 21.8% in the same period of 2012).
Ainsworth Lumber Co. Ltd. is a leading manufacturer and marketer of oriented strand board ("OSB") with a focus on value-added specialty products for markets in North America and Asia. Ainsworth's four OSB manufacturing mills, located in Alberta, British Columbia and Ontario, have a combined annual capacity of 2.5 billion square feet (3/8-inch basis).
