Welcome!

News Feed Item

Fortress Paper Announces Second Quarter 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/06/14 -- Fortress Paper Ltd. ("Fortress Paper" or the "Company") (TSX:FTP) reported a 2014 second quarter EBITDA loss of $6.0 million. The Dissolving Pulp Segment generated EBITDA loss of $4.2 million and the Security Paper Products Segment generated EBITDA loss of $0.4 million. Corporate costs contributed $1.4 million to EBITDA loss.

The Company is encouraged by the Fortress Specialty Cellulose mill results in the quarter ended June 30, 2014. Although the dissolving pulp market conditions continue to be challenging, production efficiencies and cash costs improved during the quarter and relative to comparative periods. The Dissolving Pulp Segment continues to be affected by poor market conditions and the anti-dumping duty imposed by China's Ministry of Commerce in April 2014.

The Fortress Specialty Cellulose mill produced 31,039 air dried metric tonnes ("ADMT") of dissolving pulp and 13,693 ADMT of northern bleached hardwood kraft ("NBHK") pulp during the second quarter of 2014. The Company sold 27,723 ADMT of dissolving pulp and 15,620 ADMT of NBHK pulp in the second quarter of 2014.

The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA for the Security Paper Products Segment for the quarter ended June 30, 2014 was $3.6 million lower when compared to the first quarter of 2014, and $0.9 million lower compared to the second quarter of 2013. A large production run was shipped in early July and therefore not included in second quarter results. Less than favourable conditions, including the strength of the Swiss franc against the Euro and strong competition for orders putting pressure on pricing, continue to adversely impact the results of the Security Paper Products Segment. The Landqart mill achieved 1,921 tonnes of security paper sales in the second quarter of 2014, compared to 2,583 tonnes of security paper sales in the first quarter of 2014.

Selected Financial Information

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the Company's consolidated financial statements as at and for the three and six month period ended June 30, 2014 and the related notes thereto and Management's Discussion and Analysis, which are available on SEDAR.


(thousands of dollars, except shipments,                                    
 unaudited)                                       Q2 2014  Q1 2014  Q2 2013 
----------------------------------------------------------------------------
                                                                            
Sales from continuing operations                   67,262   53,856   59,883 
EBITDA from continuing operations(1)               (5,994) (13,626)  (8,356)
Net loss from continuing operations               (20,108) (23,421) (20,851)
Adjusted net loss from continuing operations (2)  (18,438) (25,858) (20,632)
Paper shipments (tonnes) (3)                        1,921    2,583    1,953 
Pulp shipments (ADMT)                              43,343   20,259   38,006 
                                                                            
(1) See Net Loss to EBITDA Reconciliation for Continuing Operations.        
(2) See Net Loss to Adjusted Net Loss Reconciliation for Continuing         
    Operations.                                                             
(3) From continuing operations.                                             

Reference is made in this news release to EBITDA (defined as net income before interest, income taxes, depreciation, amortization, non-operating income and expenses and stock-based compensation), which the Company considers to be an indicative measure of operating performance and a metric to evaluate profitability. Reference is also made to adjusted net loss (calculated as net loss less specific items affecting comparability with prior periods) and adjusted net loss per share (calculated as adjusted net loss divided by the weighted average number of shares outstanding in the period). EBITDA, adjusted net loss and adjusted net loss per share are not generally accepted earnings measures and should not be considered as an alternative to net loss or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating these measures, the Company's EBITDA, adjusted net loss and adjusted net loss per share may not be directly comparable with similarly titled measures used by other companies. Reconciliations of EBITDA and adjusted net loss to net loss reported in accordance with IFRS are included below.


Net Loss to Adjusted Net Loss Reconciliation for Continuing Operations:     
                                                                            
(thousands of dollars, except per share amounts,                            
 unaudited)                                       Q2 2014  Q1 2014  Q2 2013 
----------------------------------------------------------------------------
                                                                            
Net loss from continuing operations               (20,108) (23,421) (20,851)
Foreign exchange loss (gain)                        1,670   (1,562)    (534)
(Gain) loss on sale of property, plant and                                  
 equipment                                              -     (875)     753 
----------------------------------------------------------------------------
Adjusted net loss                                 (18,438) (25,858) (20,632)
                                                                            
Basic and diluted net loss per share                (1.38)   (1.61)   (1.43)
Adjusted net loss per share, basic and diluted      (1.26)   (1.77)   (1.42)
                                                                            
Net Loss to EBITDA Reconciliation for Continuing Operations:                
                                                                            
(thousands of dollars, unaudited)                 Q2 2014  Q1 2014  Q2 2013 
----------------------------------------------------------------------------
                                                                            
Net loss                                          (20,108) (23,421) (20,851)
Income tax (recovery) expense                         (32)     (14)   3,392 
Foreign exchange loss (gain)                        1,670   (1,562)    (534)
Net finance expense                                 5,623    5,683    3,944 
Amortization                                        7,219    6,325    4,281 
(Gain) loss on sale of property, plant and              -     (875)     753 
 equipment                                                                  
Stock based compensation                             (366)     238      659 
----------------------------------------------------------------------------
EBITDA                                             (5,994) (13,626)  (8,356)

The Company

Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products. The Company operates its dissolving pulp business through the Fortress Specialty Cellulose mill located in Thurso, Quebec, Canada, which has expanded into the renewable energy generation sector with the construction of a cogeneration facility and the production of NBHK pulp. The Company operates its security paper products business at the Landqart mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers, and at its high security production and research facility located in Canada, where it manufactures optically variable thin film material. The segmentation of the Company's manufacturing operations is based on a number of factors, including production, production processes, and economic characteristics.

Conference Call

A conference call to discuss the financial results for the second quarter 2014 will be held on August 7, 2014 at 8:00 a.m. (PDT). To participate in the conference call, please dial one of the following numbers:


North America: 1-855-353-9183                                               
Vancouver: 604-681-8564                                                     
Calgary and international: 403-532-5601                                     
Edmonton: 780-429-5820                                                      
Toronto: 416-623-0333                                                       
Ottawa: 613-212-0171                                                        
Montreal: 514-687-4017                                                      
Participant pass code: 15086#                                               

Conference Reference Number: 1161395#

A replay of the conference call will be available for 30 days. To access the replay, listeners may dial 1-855-201-2300 from North America or 403-255-0697 International. The conference reference number is 1161395# and the participant pass code to access the replay is 15086 #.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organi...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...