VANCOUVER, BRITISH COLUMBIA - Ainsworth Lumber Co. Ltd. (TSX:ANS)(TSX:ANS.WT) today announced its financial results for the second quarter ended June 30, 2012.
Second Quarter Highlights:
Achieved positive adjusted EBITDA of $17.1 million - $7.1 million higher than the prior quarter and $14.4 million higher than the second quarter of 2011.
Maintained liquidity balances from the beginning of the year despite the seasonal working capital demands of the log inventory build and our semi-annual interest payment on the senior notes.
Achieved a significant safety milestone - Barwick and Grande Prairie mills have operated accident-free for one full year.
Ainsworth Performance Improves In Second Quarter
Ainsworth President and Chief Operating Officer, Jim Lake said, "I am pleased to report that Ainsworth recorded positive financial results and achieved another safety milestone in the second quarter of 2012. The Company recorded positive EBITDA of $17.1 million, which was $7.1 million higher than the prior quarter and $14.4 million higher than the same quarter last year. Our EBITDA improvement reflects a stronger pricing environment and better operating results. In addition, for the first time in Ainsworth's history, our Grande Prairie, Alberta mill and our Barwick, Ontario mill have both operated accident-free for one year and counting."
Sales were $90.5 million in the second quarter of 2012, an increase of $10.0 million from the second quarter of 2011 due to an improvement in market prices, most notably in Western Canada, partially offset by a decrease in sales volumes. Adjusted EBITDA for the second quarter of 2012 was $17.1 million compared to adjusted EBITDA of $2.7 million in the same quarter last year. Ainsworth recorded a net loss from continuing operations of $11.3 million in the second quarter of 2012, compared to a loss of $12.9 million in the second quarter of 2011. This change is primarily the result of a $14.4 million improvement in gross margin, partially offset by unrealized foreign exchange losses on long-term debt.
Year to date sales of $175.6 million for 2012 were $23.6 million higher than 2011 as a result of market prices increases, most notably in Western Canada, and higher shipment volumes. Adjusted EBITDA for the six months ended June 30, 2012 was $27.1 million compared to adjusted EBITDA of $9.0 million in the same period last year. Results from continuing operations decreased from net income of $64.8 million in the first half 2011 to a net loss of $10.6 million in the first half of 2012. The decrease resulted from a one-time gain of $72.5 million on the High Level acquisition in 2011.