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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/07/13 -- Ainsworth Lumber Co. Ltd. (TSX: ANS)(TSX: ANS.WT) today announced its financial results for the fourth quarter and year ended December 31, 2012.
2012 Highlights:
-- Achieved best annual operating results since 2005, with annual adjusted EBITDA of $106.7 million versus $12.5 million in 2011-- Exceeded previous annual production record by 4% for the three currently operating mills-- Completed comprehensive refinancing during the fourth quarter and significantly improved our balance sheet-- Commenced plans to restart our High Level, Alberta OSB facility in the second half of 2013
Ainsworth's Performance Continues to Improve
Ainsworth President and Chief Executive Officer, Jim Lake said, "I am pleased to report that Ainsworth's adjusted EBITDA for the year was $106.7 million in 2012, an increase of $94.2 million compared to 2011. Adjusted EBITDA margins were 26.1% on shipment volumes of 1.62 billion square feet (3/8" basis) and sales of $409.1 million. These impressive results not only reflect improving market conditions but were also made possible by our unrelenting focus on operational performance and our strategic commitment to value-added products and markets."
"Our three operating mills continued to generate efficiency gains, which enabled us to increase shipments and benefit from higher OSB prices. In 2012, we exceeded our prior year output by over 5% while also establishing a new annual production record. Looking forward into 2013, we expect that demand will remain strong and we are working towards restarting the High Level mill in the second half of the year, to meet both North American and export market demand."
Financial Results
Fourth quarter sales were $117.9 million in 2012 compared to $69.5 million in 2011. The $48.4 million increase in sales was mainly due to a 59.4% increase in realized pricing and a 6.4% increase in sales volumes as the Company responded to increased demand from the customers. Adjusted EBITDA for the fourth quarter of 2012 was $42.3 million compared to $2.7 million in the fourth quarter of 2011. Net income from continuing operations was $6.7 million in the fourth quarter of 2012 compared to $1.7 million in the same quarter last year. The $5.0 million increase in net income included a $39.1 million increase in gross profit. This increase was largely offset by fluctuations in non-cash accounting gains and losses and income tax expense.
Full year sales were $409.1 million in 2012 compared to $293.3 million in 2011. The $115.8 million increase in sales was the result of a 32.6% increase in realized pricing and a 5.2% increase in sales volume. Annual adjusted EBITDA was $106.7 million in 2012 compared to $12.5 million in 2011. Net income from continuing operations was $28.8 million in 2012 compared to $7.6 million in 2011. The $21.2 million increase in net income included a $93.2 million increase in gross profit. This increase was largely offset by fluctuations in non-cash accounting gains and losses and income tax expense.
Margins
Adjusted EBITDA margin on sales was 35.9% compared to 3.9% in the same period of 2011. For the full year, adjusted EBITDA margin on sales was 26.1% in 2012 compared to 4.3% in 2011.
