EACOM REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2010
30 November 2010 - 12:00AM
PR Newswire (Canada)
VANCOUVER, Nov. 29 /CNW/ -- VANCOUVER, Nov. 29 /CNW Telbec/ - EACOM
Timber Corporation (TSX VENTURE: ETR; "EACOM" or the "Company")
today reported its first quarter of results since acquiring
Domtar's forest products business on June 30, 2010. During
the quarter, low lumber prices and a strong Canadian dollar
negatively impacted operations. The Company reported a
negative EBITDA after excluding specific items (inventory valuation
adjustments and stock based compensation) of $5.4 million.
Also included in these operating results are holding costs of
approximately $1.5 million related to idled and non-operating
mills. If these holding costs are also excluded, the
resulting negative EBITDA after excluding specific items would have
been $3.9 million. Operating Results Sales for the quarter were
$73.6 million on shipments of approximately 150 million board
feet. The benchmark prices for great lakes delivery, for
random lengths two and better and studs averaged US$316 and US$283
per thousand board feet, respectively, down significantly from
earlier in the year. Price declines were seen for all
dimensions and grades but were particularly notable for studs.
Production for the quarter was 130 million board feet representing
about 58% of capacity. EACOM recorded an inventory valuation
adjustment of $1.7 million as a result of a write down of log and
lumber inventory to net realizable value EACOM's loss and
comprehensive loss for the quarter was $10.5 million ($0.03 per
common share). Liquidity At September 30, 2010, EACOM had cash and
cash equivalents of $15.3 million (excluding restricted cash of
$1.1 million) and working capital of $69.1 million. On
November 25, 2010, EACOM entered into a three year credit facility
for up to $50 million to fund working capital and general corporate
purposes. EACOM has not drawn down on the facility. Outlook
It's expected that lumber demand will remain soft and that this
will keep pressure on lumber prices for the remainder of the
calendar year. About EACOM EACOM Timber Corporation is a TSX-V
listed company. EACOM owns seven sawmills and an equity
interest in an eighth sawmill, all located in Eastern Canada and
related tenures. The mills are Timmins, Nairn Centre, Gogama
and Ear Falls in Ontario and Val-d'Or, Ste-Marie and Matagami in
Quebec. The equity interest is in the Elk Lake sawmill located in
Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie,
Quebec, are currently idled. EACOM also owns one idle mill
in Big River Saskatchewan. EACOM also owns a remanufacturing
facility and a 50% interest in an "I" joist plant. The TSX Venture
Exchange has neither approved nor disapproved the contents of this
press release. All directorships are subject to TSX Venture
Exchange approval. Forward-Looking Statements All statements in
this news release that are not based on historical fact are
"forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside
of our control that could cause actual results to materially differ
from such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the captions "Risk Factors" of the Filing Statement dated January
8, 2010 and the current MD&A for EACOM Timber Corporation on
file with the Canadian Securities Commissions. p
align="justify"Michael Liggettbr/ CFObr/ 514 848 5133/p
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