EBITDA does not represent cash generated from operations as defined by IFRSs and it is not necessarily indicative of cash available to fund cash needs. Furthermore, EBITDA does not reflect the impact of a number of items that affect our net income. EBITDA is not a measure of financial performance under IFRSs, and should not be considered as an alternative to measures of performance under IFRSs. Moreover, because all companies do not calculate EBITDA in the same manner, EBITDA as calculated by Western may differ from EBITDA as calculated by other companies. A reconciliation between the Company's net income as reported in accordance with IFRSs and EBITDA is included in Appendix A to the Company's Management's Discussion & Analysis for the quarter ended March 31, 2013, which is available under the Company's profile on SEDAR at www.sedar.com.
Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an annual available harvest of approximately 6.4 million cubic metres of timber of which approximately 6.2 million cubic metres is from Crown lands and lumber capacity in excess of 1.1 billion board feet from eight sawmills and three remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of
British Columbia while its products are sold in over 25 countries worldwide.
TELECONFERENCE CALL NOTIFICATION:
Thursday, May 9, 2013 at 10:00 a.m. PST/1:00 p.m. EST
On Thursday, May 9, 2013, Western Forest Products Inc. will host a teleconference call at 10:00 a.m. PST (1:00 p.m. EST). To participate in the teleconference please dial 416-340-8527 or 877-240-9772. This call will be taped, available one hour after the teleconference, and on replay until May 16, 2013. To hear a complete replay, please call 905-694-9451 / 800-408-3053 Passcode 1859650.
May 7, 2013
Letter to Shareholders
Western capitalized on strong lumber and log markets to deliver the highest quarterly EBITDA in Company history.
In the first quarter of 2013, Western Forest Products delivered a record $31.9 million of operating EBITDA. Improved log and lumber markets supported by good execution from our team overcame the challenges of a tight coastal log market and led to these record results. We ended the quarter in a sound financial position: zero net debt and available liquidity of $207 million. With our solid balance sheet and improving markets for our products we are more capable than ever to consider other capital allocation alternatives to drive long-term shareholder value while continuing to strategically reinvest in our business.
First quarter 2013 financial highlights are as follows:-- EBITDA for the quarter was $31.9 million, an increase of $22.5 million over the first quarter of 2012.-- Zero net debt.-- Liquidity as of March 31, 2013 improved to $207 million.We achieved the following operational successes:-- Capitalized on improved markets by focusing production on higher margin segments.-- Margin improvement program delivered an additional $5 million in the quarter.-- Mill productivity levels increased 5% over the first quarter of 2012.