DGAP-News: Fortress Paper Announces Record Third Quarter 2010 Results
(firmenpresse) - Fortress Paper Ltd. / Key word(s): Quarter Results
09.11.2010 11:08
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Fortress Paper Announces Record Third Quarter 2010 Results
VANCOUVER, BRITISH COLUMBIA-- Nov. 8, 2010
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Fortress Paper Ltd. ('Fortress Paper' or the 'Company') (TSX:FTP) reported
adjusted net income of $3.9 million for the third quarter of 2010 on sales
of $87.0 million. In the third quarter of 2009 the Company reported
adjusted net income of $3.8 million on sales of $51.0 million. For the
second quarter of 2010, the Company reported adjusted net income of $4.3
million on sales of $60.5 million.
Reported EBITDA for the Company was $8.9 million for the third quarter of
2010, an improvement compared to $8.1 million in the second quarter of 2010
and $7.0 million in the third quarter of 2009. Pulp prices retreated from
their peaks during the quarter which reduced the contribution from our
Fortress Specialty Cellulose mill, but aided our Dresden mill results. The
Landqart mill is undergoing a significant conversion of its PM1. The PM1 is
being rebuilt from a specialty paper machine into an efficient bank note
paper machine. In addition, the mill encountered an unforeseen disruption
from a bank note customer which has delayed higher margin security paper
orders. This delay was not the result of any Landqart actions.
The Company's third quarter record EBITDA was the result of significant
contribution from the recently acquired Fortress Specialty Cellulose mill
and the continued strong performance from the Dresden mill.
For the nine months ended September 30, 2010, Fortress Paper recorded
adjusted net income of $11.1 million or $1.03 per share ($0.94 per share
diluted) on sales of $197.8 million. For the nine months ended September
30, 2009, the Company recorded adjusted net income of $9.1 million or $0.88
per share (diluted and non-diluted) on sales of $147.3 million.
Reported EBITDA for the Company was $22.8 million for the nine months ended
September 30, 2010, an improvement compared to $17.7 million in the nine
months ended September 30, 2009. The EBITDA improvement is primarily due to
the contributions of the Fortress Specialty Cellulose mill.
EBITDA is defined as net income before interest, income taxes,
depreciation, amortization, non-operating income and expenses and stock
based compensation which the Company considers to be a key performance
indicator. EBITDA is not a generally accepted earnings measure and should
not be considered as an alternative to earnings or cash flows as determined
in accordance with Canadian generally accepted accounting principles. As
there is no standardized method of calculating EBITDA, the Company's use
for the term may not be comparable with similarly titled measures used by
other companies.
The third quarter of 2010 has been a very busy time for the Company with
significant progress being made on several fronts. At Landqart, the
rebuilding of PM1 into a banknote machine is on track. At this point,
Landqart is on schedule for a January 2011 start. The Company anticipates a
challenging fourth quarter from Landqart during the period in which the PM1
is rebuilt. At the Dresden mill, operations continue to run very smoothly.
At the Fortress Specialty Cellulose mill, the conversion is on track and we
still anticipate a shift to dissolving pulp in the third quarter of next
year. The underlying markets for dissolving pulp remain strong which
provides us further conviction in our attempts to expand further in this
business segment.
Selected Financial Information
The selected financial information presented herein is qualified in its
entirety by, and should be read in conjunction with, our unaudited
consolidated financial statements as at and for the period ended September
30, 2010 and the related notes thereon and our Management's Discussion and
Analysis filed on SEDAR.
Three Months Ended September 30, 2010
(thousands of dollars, except shipments, unaudited)
Q3 2010 Q2 2010 Q3 2009
Sales 86,971 60,544 51,000
EBITDA1 8,930 8,102 6,967
Operating income 6,159 1,440 5,198
Net income 5,148 40,378 3,467
Adjusted net income 3,854 4,261 3,832
Paper shipments (tonnes) 16,452 16,324 14,304
Pulp shipments (tonnes) 60,469 18,848 -
1See net income to EBITDA reconciliation.
Net income to EBITDA reconciliation:
(thousands of dollars, unaudited) Q3 2010 Q2 2010 Q3 2009
Net income $5,148 $40,378 $3,467
Income tax 2,243 1,067 1,090
Foreign exchange (gain) loss (1,294) 1,638 365
Fair value gain on acquisition - (41,804) -
Start-up costs - 3,368 -
Acquisition costs expensed - 681 -
Interest expense 62 160 276
Amortization 2,192 2,029 1,350
Stock based compensation 579 585 419
EBITDA $8,930 $8,102 $6,967
The Company
Fortress Paper is a leading international producer of security and other
specialty papers and products. Fortress operates three mills, the Landqart
Mill located in Switzerland, the Dresden Mill located in Germany and the
Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress
Paper's security papers include banknote, passport and visa papers and its
specialty papers include non-woven wallpaper base products, and graphic and
technical papers. Fortress Paper's pulp business includes NBHK produced at
the Fortress Specialty Cellulose Mill with plans to convert this capacity
into dissolving pulp production along with the construction of a biomass
based cogeneration plant.
Conference Call
A conference call to discuss the financial results for the third quarter
2010 will be held on November 9, 2010 at 9:30 a.m. (PST). To attend the
conference call, please dial one of the following numbers:
North America: 1-877-353-9586
International: 1-403-532-8075
Participant pass code: 22696#
A replay of the conference call will be available for 7 days. To access the
replay, listeners may dial 1-877-353-9587 from North America or
403-699-1055 International. The pass code to access the replay is 388891#.
Forward-Looking Statements
Some information in this news release contains forward-looking statements
that reflect the current views and/or expectations of the Company with
respect to its performance, business and future events. The reader is
cautioned that forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements
including, without limitation, those relating to damage to our reputation,
competition, maintaining our market position, marketability and price of
our products, technology and protection of our intellectual property,
dependence on our major customers, fluctuations in the price and supply of
rawmaterials, fluctuations in foreign exchange and other risk factors
detailed in our filings with Canadian securities regulatory authorities.
These risks, as well as others, could cause actual results and events to
vary significantly. Fortress Paper Ltd. does not undertake any obligation
to release publicly any revisions for updating any voluntary
forward-looking statements.
09.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Datum: 09.11.2010 - 11:08 Uhr
Sprache: Deutsch
News-ID 32530
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