Business
EACOM Timber Corporation announces its first quarter results
MONTREAL , May 23, 2013 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR) ("EACOM", or...
About this update from Etruscus Resources Corp.
[{"type":"text","content":"\n\n\nMONTREAL, May 23, 2013 /CNW Telbec/ - EACOM Timber Corporation (TSXV:\n ETR) (\"EACOM\", or the \"Company\") is pleased to announce its first\n quarter results for the three-month period ended March 31, 2013.\n\n\nHIGHLIGHTS\n\n\nEACOM recorded net earnings attributable to shareholders of $1.6 million\n in the first quarter of 2013\n\n\nEACOM recorded a negative adjusted EBITDA of $0.9 million in the first\n quarter of 2013\n\n\nEACOM concluded the negotiation of a global settlement with its insurer\n for the fire at its Timmins mill\n\n\nDuring the first quarter of 2013, housing starts in the United States\n averaged 969,000 units, up 7% from the previous quarter and, more\n significantly, 36% from the first quarter of 2012. In Canada, a\n different pattern emerged with housing starts averaging 178,000 units,\n down 13% from both the previous quarter and the first quarter of 2012.\n This improvement in the U.S. housing activity had a positive impact on\n lumber consumption and contributed to a strong pricing environment and\n higher mill realizations for the Company. However, manufacturing costs\n relative to sales were higher than those incurred in the previous\n quarter, mostly due to additional costs still being incurred as a\n result of the fire at Timmins which, since January 1, 2013, are no\n longer offset through business interruption claims, and to a longer\n than expected ramp-up at the Elk Lake mill where a substantial capital\n upgrade was completed late in the fourth quarter of 2012. As a result,\n the Company recorded a negative adjusted EBITDA of $855,000 for the\n quarter ended March 31, 2013, against a positive adjusted EBITDA of\n $3,150,000 in the previous quarter and a negative adjusted EBITDA of\n $5,355,000 in the corresponding quarter of 2012.\n\n\nIn February 2013, the Company concluded with its insurer the negotiation\n of a global settlement in the amount of $48,250,000. Net of a $250,000\n deductible and of initial advances for an aggregate amount of\n $30,600,000, the Company collected the remaining proceeds of\n $17,400,000, of which $8,900,000 for damage or destruction of assets\n and $8,500,000 related to business interruption. As such, there are no\n more receivables or anticipated payments in connection with this claim.\n\n\nQUARTER ENDED MARCH 31, 2013 vs. QUARTERS ENDED DECEMBER 31, 2012 ...