SFK Pulp Fund – reports results for fourth quarter, year end
March 17, 2008 By Pulp & Paper Canada
HIGHLIGHTS – TSX:SFK.UN
HIGHLIGHTS – TSX:SFK.UN
– Results for 2007 reflect twelve months of operations of the Fairmont and Menominee Mills whereas results for 2006 include only two months of operations since these mills were acquired on October 31, 2006.
– Fourth quarter:
– Sales totalling $124.4 million with sales volume of 178,669 tonnes.
– EBITDA(1) of $8.9 million compared to $14.4 million in the fourth quarter of 2006.
– Net loss of $0.4 million compared to a net loss of $0.1 million in the same quarter of 2006.
– Year 2007:
– Sales totalling $510.1 million, up from $312.4 million in 2006.
– EBITDA(1) of $61.5 million, up $18.5 million from 2006.
– Distributions to unitholders totalling $39.8 million or $0.44 per unit in 2007.
– Earnings before income taxes were $3.8 million, up $2.7 million from 2006.
– Net loss of $9.4 million, after taking into account a non-cash future income tax expense of $12.6 million, compared to net earnings of $1.3 million in 2006.
LONGUEUIL, QUBEC – For the fourth quarter ended December 31, 2007, SFK Pulp recorded sales of $124.4 million. Earnings before interest, taxes, depreciation and amortization (EBITDA)(1) stood at $8.9 million and a net loss of $0.4 million was incurred. This compares with sales of $110.5 million, EBITDA of $14.4 million and a net loss of $0.1 million for the same period last year.
For the year ended December 31, 2007, SFK Pulp recorded sales of $510.1 million, EBITDA of $61.5 million and a net loss of $9.4 million, after taking into account a non-cash future income tax expense of $12.6 million. For the year ended December 31, 2006, SFK Pulp recorded sales of $312.4 million, EBITDA of $43.0 million and net earnings of $1.3 million.
“Our 2007 year-end results reflect the full effect of our late 2006 acquisition of two RBK mills, making SFK Pulp a stronger and more stable organization in an ever fast changing business environment. Despite a few important mechanical failures at the Saint-Flicien mill that negatively impacted our operational performance, market-related downtime taken by some of our NBSK customers and the fast strengthening of the Canadian dollar that offset all gains made on NBSK pricing, we benefited from the contribution of our RBK assets and finished the year with EBITDA of $62 million and distributions declared to unitholders of $40 million”, said Andr Bernier,President and Chief Executive Officer of SFK Pulp.
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