MONTREAL, Sept. 11, 2015 /CNW Telbec/ - Consistent with Tembec's previously announced plans to enhance its liquidity, the Company is evaluating current capital market conditions, and in connection therewith, is having discussions with certain investors. Such discussions have led to questions regarding the Company's performance in the current fiscal quarter. As such, Tembec today is issuing an operating earnings forecast for its fourth quarter ending on September 26, 2015.
The Company expects that adjusted EBITDA for the September 2015 quarter will be in the range of $31 million to $34 million. This compares with adjusted EBITDA of $2 million in the June 2015 quarter. Operating earnings will be in the range of $19 million to $22 million in the September 2015 quarter, as compared to an operating loss of $11 million in the June 2015 quarter. The June 2015 quarterly results had been negatively impacted by significant planned major maintenance activities at the Temiscaming, Quebec and Tartas, France complexes. There will be no significant planned major maintenance in the September 2015 quarter. The decrease in the relative value of the Canadian dollar, which averaged US $0.77 in the months of July and August compared to US $0.813 in the June 2015 quarter, is also contributing to the more favourable operating results.
The previously noted forecast is based on the actual preliminary results for the months of July and August. For the month of September, it is assumed that product selling prices, foreign exchange rates and manufacturing costs will be similar to those of July and August. Tembec does not intend to continue to provide a forecast of operating earnings for future periods. The Company will release its fiscal fourth quarter results for the period ending September 26, 2015 on Thursday, November 19, 2015.
Adjusted EBITDA refers to earnings before interest, income taxes, depreciation, amortization and other items. Since the Company excludes "other items" such as gains and losses on significant asset disposals, restructuring charges and custodial costs for permanently idled facilities, it differs from EBITDA. Adjusted EBITDA does not have any standardized meaning according to IFRS. The Company defines adjusted EBITDA as sales less cost of sales and selling, general and administrative expenses, meaning it represents operating earnings before depreciation, amortization and other items. The Company considers adjusted EBITDA to be a useful indicator of the financial performance of the Company, the business segments and the individual business units. The most comparable financial measure is operating earnings or loss.
Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has approximately 3,400 employees and annual sales of approximately $1.6 billion. Tembec is listed on the Toronto Stock Exchange (TMB).
This press release includes "forward-looking statements" within the meaning of securities laws, including statements regarding Tembec's September 2015 quarter operating earnings forecast. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward‑looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. 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 the Company's periodic filings with securities regulatory authorities, including under the "risk factors" section of the Company's most recent Annual Information Form. 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 forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. 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.
For further information: Investor Contact: Michel J. Dumas, Executive Vice President, Finance and CFO, Tel: 819 627-4268, E-mail: [email protected]; Media Contact: Linda Coates, Vice President, Human Resources and Corporate Affairs, Tel.: 416 775-2819, E-mail: [email protected]