TRADING SYMBOL: Toronto Stock Exchange – HWD
LANGLEY, BC, Aug. 5, 2016 /CNW/ - Hardwoods Distribution Inc. ("Hardwoods" or the "Company") today announced the renewal of its Canadian revolving credit facility ("the facility") available to its wholly owned Canadian operating subsidiary, Hardwoods Specialty Products LP ("Hardwoods LP"). Highlights of the facility renewal include:
- Extending the term of the revolving credit facility for 5 years;
- Committed credit line of up to $20 million; and
- Improved pricing and loan advance rates against eligible accounts receivable and inventory, as compared to the previous facility.
"We are pleased with the terms of the renewal," said Faiz Karmally, Chief Financial Officer. "Hardwoods will benefit from improved borrowing rates. Combined with our U.S. credit facility which we renewed earlier this year in conjunction with the purchase of Rugby Architectural Building Products, we have committed financing in place on both sides of the border with sufficient borrowing capacity to continue executing on our growth strategies."
About Hardwoods Distribution Inc.
Hardwoods is North America's largest distributor of high-grade hardwood lumber, sheet goods, architectural millwork and non-structural architectural grade building products to the residential and commercial construction markets. The Company operates a North American network of 62 distribution centres, as well as one sawmill and kiln drying operation.
Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future actions. Forward-looking information in this news release includes, without limitation, statements with respect to: Hardwoods will benefit from improved borrowing rates and Hardwoods has committed financing on both sides of the border with unused borrowing capacity available. Actual events or results may differ materially.
The forward-looking information in this news release is based on assumptions which include, but are not limited to: Hardwoods and its subsidiaries can comply with the terms of their US and Canadian credit facilities; there are no material exchange rate fluctuations between the Canadian and US dollar that affect the Company's performance; the general state of the economy does not worsen; the Company does not lose any key personnel; there are no decreases in the supply of, demand for, or market values of hardwood lumber or sheet goods that harm the Company's business; the Company does not incur material losses related to credit provided to its customers; the Company's products are not subjected to negative trade outcomes; the Company is able to sustain its level of sales and earnings margins; the Company is able to grow its business long term and to manage its growth; the Company is able to integrate acquired businesses; there is no new competition in the markets in which the Company operates that leads to reduced sales and profitability; the Company can comply with existing regulations and will not become subject to more stringent regulations; no material product liability claims; importation of products manufactured with hardwood lumber or sheet goods does not increase and replace products manufactured in North America; the Company's management information systems upon which it is dependent are not impaired; and, the Company's insurance is sufficient to cover losses that may occur as a result of its operations.
The forward-looking information in this news release is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: Hardwoods and its subsidiaries cannot comply with the terms of their US and Canadian credit facilities; exchange rate fluctuations between the Canadian and US dollar could affect the Company's performance; the Company's results are dependent upon the general state of the economy; the Company depends on key personnel, the loss of which could harm its business; decreases in the supply of, demand for, or market values of hardwood lumber or sheet goods could harm the Company's business; the Company may incur losses related to credit provided to the Company's customers; the Company's products may be subject to negative trade outcomes; the Company may not be able to sustain its current level of sales or earnings margins; the Company may be unable to grow its business long term or to manage any growth; the Company may be unable to integrate acquired businesses; competition in the Company's markets may lead to reduced sales and profitability; the Company may fail to comply with existing regulations or become subject to more stringent regulations; product liability claims could affect the Company's sales, profitability and reputation; importation of products manufactured with hardwood lumber or sheet goods may increase, and replace products manufactured in North America; the Company is dependent upon its management information systems; the Company's insurance may be insufficient to cover losses that may occur as a result of the Company's operations; the Company's credit facilities affect its liquidity, contain restrictions on the Company's ability to borrow funds, and impose restrictions on distributions that can be made by certain subsidiaries of the Company; the market price of the Common Shares will fluctuate; and there is a possibility of dilution of existing shareholders. More information about the risks and uncertainties affecting Hardwoods' business can be found in the "Risk Factors" section of its Annual Information Form dated March 11, 2016, which is available under the Hardwoods' profile on SEDAR at www.sedar.com.
Although Hardwoods has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information in this news release, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of Hardwoods. Accordingly, readers should not place undue reliance on forward-looking information in this news release. The forward-looking information is made as of the date of this news release, and Hardwoods assumes no obligation to publicly update or revise such forward-looking information to reflect new information, subsequent or otherwise, except as may be required by applicable securities law. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.
Additional information relating to the Company and other public filings are available under Hardwoods' profile on SEDAR at www.sedar.com.
SOURCE Hardwoods Distribution Inc.
For further information: Faiz Karmally, Chief Financial Officer, Phone: (604) 881-1982; Email: [email protected]; Website: http://www.hardwoods-inc.com