Ainsworth Lumber believes it can fund any shortfalls and debt payments

By Lisa Kerner

Charlotte, N.C., May 14 - Ainsworth Lumber Co. Ltd. ended the first quarter of 2010 with C$407 million of net debt and liquidity of C$138 million, according to the company's earnings call on Friday.

The company is confident in its ability to fund any shortfall from operations, interest payments, debt repayments and essential capital expenditures, Rick Huff, president and chief executive officer, said in a news release.

Debt principal repayments are scheduled to total C$11 million in 2010 and C$24 million in 2011.

Ainsworth's $350 million senior unsecured notes mature in 2015, and its $103 million term loan is scheduled to mature in 2014.

The company's indenture permits Ainsworth to borrow an additional $125 million of senior secured debt and $75 million of senior unsecured debt.

Huff said Ainsworth entered 2010 lean and focused.

Positive adjusted EBITDA in the first quarter was C$14.8 million, compared with positive adjusted EBITDA of C$1.1 million in the first quarter of 2009.

The improvement was attributed to a C$14 million improvement in gross profit in the first quarter of 2010.

It was the company's third consecutive quarter of positive adjusted EBITDA.

Net income from continuing operations for the first quarter of 2010 was C$15.7 million, compared with a net loss of C$34 million in the prior-year period.

Ainsworth is a Vancouver, B.C., manufacturer of engineered wood products.

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