Aug 16, 2013. /Lesprom Network/. EACOM Timber Corporation announced its 2Q results for the three-month period ended June 30, 2013. For the quarter ended June 30, 2013, the net loss attributable to shareholders amounted to $17.2 million or $0.03 per common share, against net earnings of $1.6 million or $0.00 per common share in the previous quarter and a net loss of $933,000 or $0.00 per common share in the corresponding quarter of 2012. The current quarter results include costs of $3.3 million related to the take-over bid by ET Acquisition Corporation to acquire all of the common shares of EACOM, and a financing expense of $14million arising mainly from the early redemption of the $40 million 10% senior secured debentures. The previous quarter results included a gain of $8.5 million on business interruption, partially offset by transaction-related costs of $1.6 million. In the corresponding quarter of 2012, there were no such items, as the company said in the press release received by Lesprom Network.

For the quarter ended June 30, 2013, the Company recorded sales of $88.3 million, up 24% against sales of $71 million in the previous quarter and 35% against sales of $65.3 million in the corresponding quarter of 2012. During the 2Q, the Company shipped 159 million board feet of lumber (128 million board feet in the previous quarter and 133 million board feet in the corresponding quarter of 2012) and 143,000 oven-dried metric tons of by-products (120,000 oven-dried metric tons in the previous quarter and 119,000 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.

Lumber production for the quarter ended June 30, 2013 was 144 million board feet of lumber, against 129 million board feet in the previous quarter and 109 million board feet in the corresponding quarter of 2012. During the second quarter, the Company operated at 57% of its capacity (51% in the previous quarter and 40% in the corresponding quarter of 2012). The second quarter saw increased production levels at Elk Lake and, to a lesser extent, at Nairn Centre and Gogama. The previous quarter was impacted by a longer than expected ramp-up at the Elk Lake mill where a substantial capital upgrade had been completed in the 4Q 2012 whereas in the corresponding quarter of 2012, operations in Val-d'Or and Matagami were temporarily shut down due to weak market conditions.

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.