New Gear Equipment Wood Panels
Strong Q2 results for Ainsworth

Aug. 13, 2013, Vancouver- Ainsworth Lumber announced strong financial results for the second quarter ended June 30, 2013.

Ainsworth President and Chief Executive Officer, Jim Lake said, "The second quarter of 2013 was another solid period for Ainsworth. The Company generated adjusted EBITDA of $50.7 million, which represented a $33.8 million improvement versus the second quarter of 2012. We continued to benefit from the early stages of the U.S. housing market recovery, generating adjusted EBITDA of $113.2 million in the first half of 2013 compared to $26.5 million in the same period in 2012."

Financial results

Sales were $127.5 million in the second quarter of 2013, representing a $37.0 million increase over the second quarter of 2012, due to a 45.9 per cent increase in realized pricing that was partially offset by a 3.4 per cent decrease in sales volumes. Adjusted EBITDA was $50.7 million in the second quarter of 2013 compared to $16.9 million in the same period of 2012. Net income from continuing operations in the second quarter of 2013 was $2.8 million compared to a net loss from continuing operations of $11.4 million in the second quarter of 2012. The $14.2 million increase included a $33.9 million increase in gross profit and a $5.7 million reduction in finance expense, partially offset by increased costs of curtailed operations associated with activity at the High Level mill, and fluctuations in non-cash accounting gains and losses and income tax expense.

In the first half of 2013, sales were $269.3 million compared to $175.6 million in the same period of 2012. The $93.7 million increase was related to a 57.7 per cent increase in realized pricing, partially offset by a 2.7 per cent decrease in sales volumes. Adjusted EBITDA for the year to date was $113.2 million in 2013 compared to $26.5 million in 2012. Net income from operations in the first six months of 2013 was $39.3 million, compared to a net loss from continuing operations of $10.8 million for the same period in 2012, representing an increase of $50.1 million. The increase included an $86.8 million increase in gross profit, an $11.9 million decrease in finance expense, and a $2.9 million variation in foreign exchange gain/loss on operations, partially offset by increased costs of curtailed operations, and fluctuations in non-accounting gains and losses and income tax expense.

Margins

Adjusted EBITDA margin on sales for the second quarter of 2013 was 39.8 per cent compared to 18.7 per cent in the second quarter of 2012 (42.0 per cent in the first half of 2013 compared to 15.1 per cent in the same period of 2012).

Benchmark OSB pricing decreased during the second quarter of 2013, but remained stronger than the same period last year, with the North Central price for 7/16" OSB averaging U.S.$347 per msf (an increase of 48 per cent compared to the second quarter of 2012, and a 17 per cent decrease compared to prior quarter). The Western Canadian price for 7/16" OSB averaged U.S.$328 per msf in the second quarter of 2013 (an increase of 41 per cent compared to the second quarter of 2012, and a 22 per cent decrease compared to prior quarter).

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August 14, 2013  By Marketwired