MONTREAL, June 18 /CNW Telbec/ - Consistent with Tembec's previously announced plans to enhance its liquidity and improve its balance sheet, the Company is evaluating current market conditions, and in connection therewith, will have discussions with certain investors. Such discussions may lead to questions regarding the Company's performance in the current fiscal quarter. As such, Tembec today issued a forecast for its third quarter ending on June 26, 2010.
The Company expects that EBITDA will be in the range of $47 million to $53 million. This compares with EBITDA of $32 million in the most recent quarter ended March 27, 2010. Following the recent sale of two pulp mills, liquidity is expected to be approximately $250 million, up from $138 million at the end of the March 2010 quarter. Liquidity consists of cash and undrawn revolving lines of credit.
Tembec defines EBITDA as earnings before non-recurring items, interest, income taxes, depreciation, amortization and other non-operating expenses and revenues. The Company considers EBITDA to be a useful indicator of the financial performance of the Company, the various business segments and the individual business units. EBITDA is not a measure of performance under GAAP, and it should not be considered as an alternative to operating earnings, net income, cash flow from operating activities or any other measure of performance derived in accordance with GAAP. As there is no generally accepted method of calculating EBITDA, it may not be directly comparable to similar measures reported by other companies.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "will", "anticipate", "estimate", "expect" and "project" or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments and may not be appropriate for any purposes other than what is stated herein. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
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