Ainsworth Lumber boosts sales, EBTIDA in Q2 with higher sales prices

By Jennifer Lanning Drey

Portland, Ore., Aug. 6 - Ainsworth Lumber Co. Ltd.'s second-quarter sales and adjusted EBTIDA both increased over the comparable period of 2009, as higher realized sales prices drove both figures higher during the period, Chris Davies, Ainsworth's chief financial officer, said Friday during its earnings call.

The company reported adjusted EBITDA of C$34.9 million in the second quarter on sales of C$96.1 million. The figures compared with adjusted EBTIDA of negative C$900,000 on sales of C$70.8 million in the same period of 2009.

"The second quarter was another quarter of solid financial performance for Ainsworth, capping what was a strong first six months of the year," Rick Huff, Ainsworth's chief executive officer, said during the call.

Ainsworth ended the second quarter with C$410.6 million of net debt and C$160 million of liquidity.

Ainsworth has C$5 million of debt principal repayments scheduled in 2010 and C$24 million in 2011.

The company believes it has the necessary working capital to effectively manage through all phases of the business cycle, according to its earnings release.

Ainsworth generated C$26.6 million in cash from operations before changes in working capital in the second quarter, compared with C$10.1 million of cash used in operations during the same period of 2009.

The company is confident in its ability to fund any shortfall from operations, interest payments, debt repayments and essential capital expenditures, the release said.

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

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