Ainsworth Lumber ends Q2 with C$103 million liquidity, C$341 million debt

By Lisa Kerner

Charlotte, N.C., Aug. 12 – Ainsworth Lumber Co. Ltd.’s available liquidity, consisting of cash and cash equivalents, was down C$34 million from year-end, totaling C$103 million at June 30.

The decrease was attributed to seasonal log inventory build, a semiannual interest payment and capital expenditures, combined with the timing of accounts receivable and accounts payable.

Total debt was C$341 million, and net debt to capitalization at June 30 was 36%, compared to 32% at year-end, according to the earnings presentation.

Second-quarter sales were down about C$10 million year over year at C$117 million, according to the company’s earnings news release. Ainsworth attributed the decline mainly to a 24% decrease in realized pricing.

Sales for the first half of the year were down C$44 million compared with the prior-year period at C$225 million.

Adjusted EBITDA was C$13 million in the second quarter of 2014 compared to about C$51 million in the same period of 2013.

For the six months ended June 30, adjusted EBITDA was about C$23 million compared to C$113 million in the comparable period.

“Despite the slower pace of housing growth in the near-term, we are optimistic about the longer-term recovery and continued absorption of industry supply,” said president and chief executive officer Jim Lake.

Ainsworth is a Vancouver, B.C.-based manufacturer of engineered wood products.

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