Fortress Global Enterprises releases year-end 2018 results
By P&PC Staff
By P&PC Staff
April 1, 2019 – Fortress Global Enterprises Inc. has reported its year-end 2018 and fourth quarter results, citing “significant improvements” over 2017.
The company indicated its 2018 fourth-quarter operating EBITDA from continuing operations of $4.2 million compared to operating EBITDA from continuing operations of $7.5 million in the previous quarter and operating EBITDA loss from continuing operations of $5.7 million in the prior year comparative period.
The dissolving pulp segment generated operating EBITDA of $6.1 million. The company invested $0.8 million in the bioproducts segment and corporate costs were $1.1 million in the fourth quarter of 2018.
“Fortress Global Enterprises achieved significant improvements in fiscal 2018 when compared to the previous year,” says Giovanni Iadeluca, chief executive officer of Fortress Global Enterprises. “Progress was made in productivity, reliability and quality all while managing a baseline capital expenditure program, leading to our second highest EBITDA total for a fourth quarter. Our people were the key drivers of performance gains, a direct result of the formal leadership program initiated in 2018 to drive operational improvements. Further progress is anticipated in 2019.”
Significant developments in 2018 included the company transitioning the CEO position and changing its name from Fortress Paper Ltd. to Fortress Global Enterprises Inc. in order to better reflect its existing business and future prospects; creating a new reporting segment (the “bioproducts segment”) as a result of the acquisition and integration of S2G Biochemicals Inc.
Subsequent to the acquisition of S2G, Fortress obtained commitments in principle from the federal and Quebec governments for up to $17.4 million in funding for the xylitol and complementary bioproducts demonstration plant planned to be constructed at Fortress’s dissolving pulp mill in Thurso, Quebec. Up to an additional $10 million in federal government funding was announced in early 2019; and the company entered into a technology license and collaboration agreement with Mondelēz International, Inc.
The fifth digester project was completed on time and on budget, and operational permits were received.
Looking mid- to long term, Fortress is finalizing plans to modernize the FSC mill, diversify revenue streams by converting underutilized mill process streams into high value bioproducts, such as xylitol, and more permanently improving the balance sheet.
Read the full 2018 Fortress Global Enterprises financial report.