Business
KP Tissue Releases Second Quarter 2014 Financial Results
MISSISSAUGA, ON , Aug. 13, 2014 /CNW Telbec/ - KP Tissue Inc. ("KPT") (TSX: KPT) reports...
About this update from Kp Tissue, Inc.
[{"type":"text","content":"\n\n\nMISSISSAUGA, ON, Aug. 13, 2014 /CNW Telbec/ - KP Tissue Inc. (\"KPT\")\n (TSX: KPT) reports the Q2 2014 Financial and Operational Results of KPT and Kruger Products\n L.P. (KPLP):\n\n\n\nRevenue increased by 7.5% to $265.3 million in Q2 2014 compared to\n $246.8 million in Q2 2013\n\n\nEBITDA of $29.0 million in Q2 2014 compared to $31.7 million in Q2 2013\n\n\nTAD product sales continued to progress well, with EBITDA contribution\n of $7.8 million in Q2 2014\n\n\nMaintained number one overall consumer market share in Canada\n\n\nAcquired Metro Paper Canadian converting assets and North American\n customer base for cash consideration of $23.4 million\n\n\nSolid balance sheet with $40.5 million of cash at the end of the quarter\n\n\n\n\"TAD Product EBITDA of $7.8 million was an important contributor to\n second quarter EBITDA of $29.0 million. Our consumer and AFH businesses\n continued to face the challenge of high input costs and competitive\n environments during the quarter,\" said Mario Gosselin, CEO of KP Tissue\n and KPLP.\n\n\nTAD product sales continued to ramp-up as planned and we expect fiscal\n 2014 TAD Product EBITDA to be in the previously provided range.\n Furthermore, we are now engaged in a study to evaluate capacity\n expansion and use of TAD technology.\n\n\n\"In the Canadian consumer market, our brands are maintaining their\n overall market share leadership. We are continuing our capital\n investment program as planned, to improve our profitability and reduce\n our manufacturing costs in Canada. We are currently realizing the\n benefits of two previously announced cost optimization projects and are\n planning to implement additional cost reduction initiatives in the back\n half of the year.\n\n\nWe expect EBITDA for the third quarter of 2014 to be higher than Q2 2014\n and similar to or slightly higher than the third quarter of 2013. On a\n sequential basis, we anticipate an improvement in our Canadian consumer\n business reflecting normal seasonality,\" concluded Mr. Gosselin.\n\n\nKP Tissue Inc.\nKPT holds a 16.6% interest in KPLP. The highlights, discussion and\n analysis in this earnings release, unless identified specifically as\n representing the financial results of only KPT, relates entirely to the\n financial results of KPLP.\n\n\nKPLP Q2 2014 Financial Results\nRevenue in Q2 2014 was $265.3...