Business
Western Forest Products Announces Q1 2006 Results - Strategic Acquisitions Closed
Western Forest Products Announces Q1 2006 Results - Strategic Acquisitions Closed.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, May 12 /CNW/ - Western Forest Products Inc. (TSX: WEF) today\nannounced its results for the first quarter of 2006. The Company will host a\nteleconference call on Tuesday, May 16, 2006 at 10:00 a.m. PST (1:00 p.m. EST)\non the Company's results. (See below for details on participation).\nDuring the first quarter of 2006 the Company completed a number of\npreviously announced strategic initiatives to focus on the lumber business and\nrefinance the balance sheet.\n\n Q1 2006 Overview\n-------------------------------------------------------------------------\n\n- EBITDA improved $5.2 million to negative $0.1 million from the fourth\n quarter of 2005 primarily due to lower softwood lumber duties and\n stumpage fees.\n- Net loss from continuing operations of $46.5 million or $1.81 per\n share includes a $27.9 million one time charge with respect to the\n early redemption of the Company's 15% Senior Secured Bonds.\n- Completed a $295 million rights offering to all shareholders for\n subscription receipts on March 9, 2006 with proceeds held in escrow\n to fund the acquisition of Cascadia Forest Products Ltd. which closed\n on May 1, 2006.\n- Completed the acquisition of the Englewood Logging Division, formerly\n owned by Canfor Corporation, on March 17, 2006 for $45 million\n payable from the price premium to be received on a new long-term\n fibre agreement. An additional $35 million up front cash premium was\n received by Western on entering the agreement.\n- Completed the refinancing of the Company's 15% Secured Bonds from the\n proceeds of two new term loans on March 10, 2006.\n- Narrowed the Company's business focus to lumber with the closure of\n the Squamish NBSK pulp mill on January 26, 2006.\n-------------------------------------------------------------------------\n\nCommenting on the quarter, Reynold Hert, President and CEO noted, \"With\nthe completion of the acquisitions of Cascadia and Englewood we believe we\nhave the necessary timber and sawmill assets that will allow us to compete\nglobally in the softwood lumber markets. We will now set out to realize the\n$71 million of annual operating synergies we previously identified with these\ntwo transactions. At the same time, we are pursuing a $12.5 million upgrade to\nour Cowichan Bay sawmill that will improve recoveries and lower unit costs...