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LONDON, UK / ACCESSWIRE / April 26, 2017 / Active Wall St. announces the list of stocks for today's research reports. Pre-market the Active Wall St. team provides the technical coverage impacting selected stocks trading on the Toronto Exchange and belonging under the Forest Products industry. Companies recently under review include West Fraser Timber, Canfor, Western Forest Products, and Interfor. Get all of our free research reports by signing up at: At the closing bell on Tuesday, April 25, 2017, the Toronto Exchange Composite index edged 0.21% higher to finish the trading session at 15,745.19 with a total volume of 380,893,199 shares exchanging hands for the day. Active Wall St. has initiated research reports on the following equities: West Fraser Timber Company Ltd. (TSX: WFT), Canfor Corporation (TSX: CFP), Western Forest Products Inc. (TSX: WEF), and Interfor Corporation (TSX: IFP). Register with us now for your free membership and research reports at: Vancouver, Canada-based West Fraser Timber Co. Ltd.'s stock gained 8.77%, to finish Tuesday's session at $61.30 with a total volume of 1.34 million shares traded. Over the last one month and the previous three months, West Fraser Timber's shares have gained 12.13% and 34.90%, respectively. Furthermore, the stock has surged 42.10% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. West Fraser Timber's 50-day moving average of $56.90 is above its 200-day moving average of $49.87. Shares of the Company, which produces and sells lumber, panels, and pulp and paper in western Canada and the southern US, are trading at a PE ratio of 15.73. See our research report on WFT.TO at: On Tuesday, shares in Vancouver, Canada-based Canfor Corp. recorded a trading volume of 1.20 million shares, which was above their three months average volume of 387,369 shares. The stock ended the day 7.87% higher at $19.61. Canfor's stock has gained 10.17% in the last one month and 35.99% in the previous three months. Furthermore, the stock has surged 34.32% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. The stock's 50-day moving average of $18.28 is above its 200-day moving average of $15.95. Shares of the Company, which operates as an integrated forest products company in Canada, Asia, the US, Europe, and internationally, are trading at PE ratio of 17.26. The complimentary research report on CFP.TO at: On Tuesday, shares in Vancouver, Canada headquartered Western Forest Products Inc. ended the session 1.44% higher at $2.11 with a total volume of 2.30 million shares traded. Western Forest Products' shares have gained 1.93% in the last one month and 12.23% in the previous three months. The stock is trading above its 200-day moving average. Furthermore, the stock's 50-day moving average of $2.13 is greater than its 200-day moving average of $1.99. Shares of Western Forest Products, which operates as an integrated softwood forest products company, are trading at a PE ratio of 8.87. Register for free and access the latest research report on WEF.TO at: Vancouver, Canada headquartered Interfor Corp.'s stock closed the day 4.26% higher at $20.07. The stock recorded a trading volume of 519,340 shares, which was above its three months average volume of 273,006 shares. Interfor's shares have gained 20.40% in the last one month and 38.70% in the past three months. Furthermore, the stock has rallied 75.74% in the previous one year. The Company's shares are trading above their 50-day and 200-day moving averages. Moreover, the stock's 50-day moving average of $17.82 is greater than its 200-day moving average of $15.90. Shares of the Company, which together with its subsidiaries, produces wood products, are trading at a PE ratio of 21.42. Get free access to your research report on IFP.TO at: Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below. AWS has not been compensated; directly or indirectly; for producing or publishing this document. The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way. AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice. This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/. For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at: CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.


LONDON, UK / ACCESSWIRE / April 26, 2017 / Active Wall St. announces the list of stocks for today's research reports. Pre-market the Active Wall St. team provides the technical coverage impacting selected stocks trading on the Toronto Exchange and belonging under the Forest Products industry. Companies recently under review include West Fraser Timber, Canfor, Western Forest Products, and Interfor. Get all of our free research reports by signing up at: At the closing bell on Tuesday, April 25, 2017, the Toronto Exchange Composite index edged 0.21% higher to finish the trading session at 15,745.19 with a total volume of 380,893,199 shares exchanging hands for the day. Active Wall St. has initiated research reports on the following equities: West Fraser Timber Company Ltd. (TSX: WFT), Canfor Corporation (TSX: CFP), Western Forest Products Inc. (TSX: WEF), and Interfor Corporation (TSX: IFP). Register with us now for your free membership and research reports at: Vancouver, Canada-based West Fraser Timber Co. Ltd.'s stock gained 8.77%, to finish Tuesday's session at $61.30 with a total volume of 1.34 million shares traded. Over the last one month and the previous three months, West Fraser Timber's shares have gained 12.13% and 34.90%, respectively. Furthermore, the stock has surged 42.10% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. West Fraser Timber's 50-day moving average of $56.90 is above its 200-day moving average of $49.87. Shares of the Company, which produces and sells lumber, panels, and pulp and paper in western Canada and the southern US, are trading at a PE ratio of 15.73. See our research report on WFT.TO at: On Tuesday, shares in Vancouver, Canada-based Canfor Corp. recorded a trading volume of 1.20 million shares, which was above their three months average volume of 387,369 shares. The stock ended the day 7.87% higher at $19.61. Canfor's stock has gained 10.17% in the last one month and 35.99% in the previous three months. Furthermore, the stock has surged 34.32% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. The stock's 50-day moving average of $18.28 is above its 200-day moving average of $15.95. Shares of the Company, which operates as an integrated forest products company in Canada, Asia, the US, Europe, and internationally, are trading at PE ratio of 17.26. The complimentary research report on CFP.TO at: On Tuesday, shares in Vancouver, Canada headquartered Western Forest Products Inc. ended the session 1.44% higher at $2.11 with a total volume of 2.30 million shares traded. Western Forest Products' shares have gained 1.93% in the last one month and 12.23% in the previous three months. The stock is trading above its 200-day moving average. Furthermore, the stock's 50-day moving average of $2.13 is greater than its 200-day moving average of $1.99. Shares of Western Forest Products, which operates as an integrated softwood forest products company, are trading at a PE ratio of 8.87. Register for free and access the latest research report on WEF.TO at: Vancouver, Canada headquartered Interfor Corp.'s stock closed the day 4.26% higher at $20.07. The stock recorded a trading volume of 519,340 shares, which was above its three months average volume of 273,006 shares. Interfor's shares have gained 20.40% in the last one month and 38.70% in the past three months. Furthermore, the stock has rallied 75.74% in the previous one year. The Company's shares are trading above their 50-day and 200-day moving averages. Moreover, the stock's 50-day moving average of $17.82 is greater than its 200-day moving average of $15.90. Shares of the Company, which together with its subsidiaries, produces wood products, are trading at a PE ratio of 21.42. Get free access to your research report on IFP.TO at: Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below. AWS has not been compensated; directly or indirectly; for producing or publishing this document. The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way. AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice. This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/. For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at: CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. LONDON, UK / ACCESSWIRE / April 26, 2017 / Active Wall St. announces the list of stocks for today's research reports. Pre-market the Active Wall St. team provides the technical coverage impacting selected stocks trading on the Toronto Exchange and belonging under the Forest Products industry. Companies recently under review include West Fraser Timber, Canfor, Western Forest Products, and Interfor. Get all of our free research reports by signing up at: At the closing bell on Tuesday, April 25, 2017, the Toronto Exchange Composite index edged 0.21% higher to finish the trading session at 15,745.19 with a total volume of 380,893,199 shares exchanging hands for the day. Active Wall St. has initiated research reports on the following equities: West Fraser Timber Company Ltd. (TSX: WFT), Canfor Corporation (TSX: CFP), Western Forest Products Inc. (TSX: WEF), and Interfor Corporation (TSX: IFP). Register with us now for your free membership and research reports at: Vancouver, Canada-based West Fraser Timber Co. Ltd.'s stock gained 8.77%, to finish Tuesday's session at $61.30 with a total volume of 1.34 million shares traded. Over the last one month and the previous three months, West Fraser Timber's shares have gained 12.13% and 34.90%, respectively. Furthermore, the stock has surged 42.10% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. West Fraser Timber's 50-day moving average of $56.90 is above its 200-day moving average of $49.87. Shares of the Company, which produces and sells lumber, panels, and pulp and paper in western Canada and the southern US, are trading at a PE ratio of 15.73. See our research report on WFT.TO at: On Tuesday, shares in Vancouver, Canada-based Canfor Corp. recorded a trading volume of 1.20 million shares, which was above their three months average volume of 387,369 shares. The stock ended the day 7.87% higher at $19.61. Canfor's stock has gained 10.17% in the last one month and 35.99% in the previous three months. Furthermore, the stock has surged 34.32% in the past one year. The Company's shares are trading above its 50-day and 200-day moving averages. The stock's 50-day moving average of $18.28 is above its 200-day moving average of $15.95. Shares of the Company, which operates as an integrated forest products company in Canada, Asia, the US, Europe, and internationally, are trading at PE ratio of 17.26. The complimentary research report on CFP.TO at: On Tuesday, shares in Vancouver, Canada headquartered Western Forest Products Inc. ended the session 1.44% higher at $2.11 with a total volume of 2.30 million shares traded. Western Forest Products' shares have gained 1.93% in the last one month and 12.23% in the previous three months. The stock is trading above its 200-day moving average. Furthermore, the stock's 50-day moving average of $2.13 is greater than its 200-day moving average of $1.99. Shares of Western Forest Products, which operates as an integrated softwood forest products company, are trading at a PE ratio of 8.87. Register for free and access the latest research report on WEF.TO at: Vancouver, Canada headquartered Interfor Corp.'s stock closed the day 4.26% higher at $20.07. The stock recorded a trading volume of 519,340 shares, which was above its three months average volume of 273,006 shares. Interfor's shares have gained 20.40% in the last one month and 38.70% in the past three months. Furthermore, the stock has rallied 75.74% in the previous one year. The Company's shares are trading above their 50-day and 200-day moving averages. Moreover, the stock's 50-day moving average of $17.82 is greater than its 200-day moving average of $15.90. Shares of the Company, which together with its subsidiaries, produces wood products, are trading at a PE ratio of 21.42. Get free access to your research report on IFP.TO at: Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below. AWS has not been compensated; directly or indirectly; for producing or publishing this document. The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way. AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice. This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/. For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at: CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.


News Article | May 4, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 4, 2017) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") announced today its voting results in respect of the election of all director nominees at its Annual and Special Meeting (the "Meeting") held today as follows: The total number of shares represented by shareholders in person and by proxy at the meeting was 250,467,781, representing 63.34% of the Corporation's outstanding shares. The Company has also filed a report of voting results on all resolutions voted on at the Meeting on www.sedar.com. Western is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and one remanufacturing plant. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide.


News Article | May 3, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 3, 2017) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") is pleased to confirm that a quarterly dividend of $0.02 per share will be paid with respect to the Company's second fiscal quarter of 2017 to shareholders of record as at the close of business on Thursday, June 1, 2017 and will be distributed on or about Friday, June 16, 2017. The dividend will return a portion of the Company's net cash to shareholders, after taking into consideration the Company's liquidity and ongoing capital needs. The Board of Directors will review the amount of the dividend on a quarterly basis. This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Western is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and one remanufacturing plant. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide.


News Article | May 3, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 3, 2017) - As previously reported, Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") suffered a tragic loss on April 20 when five employees were injured, three fatally, during a rail incident at our TFL 37 Englewood Operation near Woss, British Columbia. "I would like to express our deepest concerns and condolences to the families, friends and coworkers affected by this tragedy. Our focus at this time remains on caring for the families impacted by this loss and providing support to help employees, their family members and the community cope during this extremely difficult time. The well-being and safety of our employees is of paramount importance," said Don Demens, President and Chief Executive Officer. "I would like to thank the emergency responders throughout northern Vancouver Island that responded to the incident. We are humbled by the support we have received from them, the community and the industry." Western reported adjusted EBITDA of $34.0 million in the first quarter of 2017, compared to adjusted EBITDA of $35.7 million in the first quarter of 2016, and $33.8 million reported in the fourth quarter of 2016. Accelerating log and lumber pricing largely offset the impacts of poor coastal winter weather which drove higher costs for timberlands and manufacturing. Improved average price realizations for log and lumber of 16% and 8%, respectively, were supported by strong specialty log and lumber markets, constrained supply and the continued gradual improvement in lumber demand, as compared to the same quarter of 2016. The Company successfully grew revenue to $287.7 million in the first quarter of 2017, as compared to $269.8 million in the first quarter of 2016, and $293.0 million in the fourth quarter of 2016. Growing demand and accelerating pricing for the Company's log and lumber products as compared to the same quarter last year, drove the Company's first quarter revenue growth. "We grew specialty lumber shipments and capitalized on accelerating lumber pricing to overcome weather constrained log supply and deliver another strong adjusted EBITDA result," said Don Demens, President and Chief Executive Officer. "We're disappointed in the US Department of Commerce's decision to implement a duty on Canadian lumber, especially as it pertains to our specialty, appearance lumber. We are confident that Western's robust balance sheet, lack of debt, and global market positioning will help overcome any market uncertainty from the US duty." Net income of $16.2 million ($0.04 per diluted share) was reported for the first quarter of 2017, as compared to $17.3 million ($0.04 per diluted share) for the first quarter of 2016. Improved price realizations largely offset the impacts of difficult winter weather conditions on operating costs. In the first quarter of 2017 we generated adjusted EBITDA of $34.0 million, a 5% decrease from the same quarter in 2016 due to difficult winter weather conditions which impacted operations and limited log availability. Improved log and lumber pricing, a 2% increase in lumber shipments and a stronger specialty lumber sales mix partially offset the weather-related impacts on our operations. First quarter lumber revenue was $225.6 million in 2017, an increase of 9% from the same quarter of 2016. We realized an average lumber price of $985 per thousand board feet in the first quarter of 2017. Specialty lumber mix increased to 57% from 54% in the same quarter of last year, while we grew lumber shipments by 2% to capitalize on accelerating pricing through the quarter. We realized improved Western Red Cedar ("WRC") pricing notwithstanding cutting a lower quality grade mix of logs. WRC lumber shipments remained stable despite a 25% reduction in total coastal cedar log harvest, as reported by the Province of BC's Harvest Billing system. We increased volumes to Japan and improved Niche shipments as compared to the same quarter last year. While commodity lumber sales volume declined, we directed volume from the US market to China to meet strong demand and to mitigate potential US-Canada softwood lumber duty exposure. First quarter log revenue was $45.5 million in 2017, a decrease of $0.8 million from the same period in 2016. Strong price realizations offset a 17% decline in sales volume due to reduced opening log inventories and poor harvest volumes. By-product revenue was $16.6 million in the first quarter of 2017, as compared to $17.3 million in the same period in 2016. By-product revenue declined commensurate with reduced lumber production. Lumber production was 214 million board feet, a decrease of 3% from the first quarter of 2016. Stronger operating performance from our Saltair and Ladysmith sawmills largely offset log related downtime at our Somass and Alberni Pacific sawmills. Beginning in early February 2017, the Somass sawmill was fully curtailed and operations at our Alberni Pacific division were reduced to one shift. Operating curtailments and reduced log supply contributed to an increase in manufacturing costs. Timberlands log harvest decreased by 12% as compared to the same quarter of 2016, as prolonged winter weather limited harvest production. Log supply was supplemented by sawlog purchases of 231,000 cubic metres, a reduction from 268,000 in the same quarter last year due to reduced coastal supply. Harvest costs increased by 6% in the first quarter of 2017 due to the reduced harvest volume and storm damage costs. Increased China shipments coupled with higher lumber sales volumes resulted in a $5.1 million increase in first quarter freight costs as compared to the same period of 2016. Selling and administration expense in the first quarter of 2017 increased to $8.4 million from $6.8 million in the same period of 2016. A significant relative increase in the value of the Company's common share price, period-over-period, and more outstanding share units were the primary drivers for a $1.0 million increase in mark-to-market, performance and share-based compensation. The Company's common share price appreciated by 15% in the first quarter of 2017, as compared 2% in the same period last year. In addition, the Company incurred incremental costs as a result of ongoing system and process improvement initiatives. Net income for the first quarter of 2017 was $16.2 million, compared to $17.3 million for the same period of 2016. A decrease in operating income was partially offset by lower finance costs and reduced tax expense. First quarter finance costs were $0.7 million in 2017, a reduction of $0.4 million from the same quarter of 2016. All drawings on the Company's debt facilities were fully repaid in the first quarter of 2017 resulting in lower interest expense. During the first quarter of 2017, current income tax expense of $0.2 million and deferred income tax expense of $6.1 million was recognized on net income, primarily relating to operating earnings. Western's long-term business objective is to create superior value for shareholders by building a margin- focused log and lumber business of scale to compete successfully in global softwood markets. We believe this will be achieved by maximizing utilization of our forest tenures, operating efficient, low-cost manufacturing facilities and producing high-value softwood lumber and logs for global markets. We seek to manage our business with a focus on operating cash flow and maximizing the value of our fibre resource through the production cycle, from the planning of our logging operations to the production, marketing and sale of our log and lumber products. The following strategic initiatives will continue to guide our focus: We have developed a track record for consistently delivering positive operating income and positioning the balance sheet to maximize flexibility in the face of uncertainty. We have announced or implemented $101.9 million of strategic capital investments to strengthen our operating platform and position Western as the only company on the coast of BC capable of consuming the profile of the coastal forest and competitively manufacturing a diverse product mix. Recent capital investment information is presented below under Strategic Capital Program Update. Recently completed and activated strategic capital investments have facilitated the consolidation of our manufacturing operations. By advancing the recapitalization and consolidation of our coastal operating base, we have improved the financial performance and stability of our business. We continue to invest in people and systems to create a platform for growth and to facilitate the acceleration of our pursuit of margin-focused growth opportunities. We grew annual revenue to $1,187.3 million in 2016, more than double the revenue reported in 2009. We continue to optimize our operations and invest in our mills and timberlands to reduce costs, improve margins, and grow our business through increased production. The success of our business relationships with First Nations communities continues to grow incremental log supply and has enabled Western to grow specialty lumber production. We continue to pursue opportunities for long-term, mutually beneficial relationships with coastal First Nations. We have implemented a non-capital margin improvement program to optimize our supply chain and further consolidate our business. From a product marketing perspective, we are delivering on a strategy that drives increased market share through the sale of targeted products of scale to selected customers who value our product offerings. We are evaluating all opportunities to grow market share in targeted products and drive shareholder value. Our ongoing reinvestment in and consolidation of our coastal operating base, steady improvements in our operating performance and a strong balance sheet have positioned Western to actively pursue external growth opportunities. We remain confident that over the mid to long term, growth in the US new home construction and repair and renovation markets, as well as increasing demand from China, combined with reduced supply from the BC Interior as a result of Mountain Pine Beetle, will deliver an improved pricing environment for our products. In the near-term, we expect US lumber prices to increase as a result of improved market conditions and the application of duties on Canadian lumber. Higher US lumber prices are expected to impact global softwood flows by motivating US lumber and log exporters to redirect supply to their domestic market and by attracting European supply to the US market. We believe these global market dynamics will create opportunities for Western. A combination of reduced supply and improved demand from an active repair and renovation segment has driven WRC lumber prices higher. As annualized lumber consumption peaks in the second quarter we anticipate that pricing will continue to rise. Demand and pricing for our Niche products should remain stable. We expect lumber demand in Japan to remain robust as we close out the first half of 2017. We believe strong demand, coupled with rising freight costs for European suppliers, will support pricing for our lumber in the second quarter. China imported a record amount of softwood logs and lumber in 2016. Demand from China continued to grow in the first quarter and we expect that trend to continue through the second quarter, supporting higher pricing. Strong demand in export and domestic log markets and constrained supply is expected to deliver further price improvements. The pulp log market is expected to improve modestly as pulp log inventories remain low, also due to reduced coastal harvest. In November 2016, a petition was filed by a coalition of US lumber producers to the US Department of Commerce ("DoC") and International Trade Commission ("ITC") requesting an investigation into alleged subsidies provided to Canadian lumber producers. The Canadian industry and Canadian governments strongly deny these assertions which have previously been disproven in international courts. On April 24, 2017, the DoC announced a countervailing duty ("CVD") of 19.88% for "all other" Canadian lumber producers including Western. The DoC also made a preliminary determination on critical circumstances that resulted in 90-day retroactive application of CVD. Cash deposits for CVD were required for lumber imports to the US effective April 28, 2017, and we have estimated that the 90-day retroactive duty obligations arising from the DoC's April 24, 2017 preliminary finding of critical circumstances is USD $8.8 million. Preliminary findings of the anti-dumping investigation are expected in late June 2017. We intend to maintain our strong balance sheet and diversified product and geographic mix as we await the outcome of the trade discussions. We continue to implement a strategic capital program that is designed to position Western as the only company on the coast of BC capable of sustainably consuming the complete profile of the coastal forest and competitively manufacturing a diverse product mix for global markets. Our strategic capital program is focused on the installation of proven technology that will deliver top quartile performance and improve our ability to manufacture the products that yield the best margin. In addition to investments in our manufacturing assets, we also allocate capital to strategic, high-return projects involving our information systems, timberlands assets, and forest inventories. In the first quarter of 2017, we continued the strategic investment in our Chemainus sawmill with the commencement of a timber deck expansion project, and advanced the Duke Point planer modernization. The Chemainus sawmill timber deck expansion and Duke Point planer modernization are scheduled for completion in 2017. We have announced plans for $101.9 million of our $125 million strategic capital program. Through the first quarter of 2017, we have implemented and capitalized $90.0 million under that program. Uncertainty arising from the softwood lumber trade dispute has caused us to defer the commencement of additional potentially significant capital projects plans, however a number of high-return, low-cost strategic capital projects are in the late stages of planning or ready for implementation. On March 29, 2017, we entered into a conditional agreement for the sale of our former South Vancouver Island Remanufacturing operation for $3.2 million. The South Island Remanufacturing plant was indefinitely curtailed in March 2016. Material conditions of this agreement were removed on April 21, 2017 and the completion date is August 19, 2017. Net of closing costs, proceeds are estimated to be $3.0 million and we expect to recognize a gain on disposition in the third quarter of 2017. We continue to evaluate the timing of sale of non-core assets and expect to accelerate the marketing and disposition of certain non-core assets. This press release contains statements which constitute forward-looking statements and forward-looking information within the meaning of applicable securities laws. Those statements and information appear in a number of places in this document and include statements and information regarding our current intent, belief or expectations primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and our future operating performance, objectives and strategies. Such statements and information may be indicated by words such as "estimate", "expect", "anticipate", "plan", "intend", "believe", "should", "may" and similar words and phrases. Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include, among others: general economic conditions, competition and selling prices, changes in foreign currency exchange rates, labour disruptions, natural disasters, relations with First Nations groups, changes in laws, regulations or public policy, misjudgements in the course of preparing forward-looking statements or information, changes in opportunities and other factors referenced under the "Risks and Uncertainties" section of our MD&A in our 2016 Annual Report dated February 16, 2017. All written and oral forward-looking statements or information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Except as required by law, Western does not expect to update forward- looking statements or information as conditions change. Reference is made in this report to adjusted EBITDA which is defined as operating income prior to operating restructuring items and other income, plus amortization of property, plant, equipment, and intangible assets, impairment adjustments, and changes in fair value of biological assets. Adjusted EBITDA margin is EBITDA presented as a proportion of revenue. Western uses adjusted EBITDA and adjusted EBITDA margin as benchmark measurements of our own operating results and as benchmarks relative to our competitors. We consider adjusted EBITDA to be a meaningful supplement to operating income as a performance measure primarily because amortization expense, impairment adjustments and changes in the fair value of biological assets are non-cash costs, and vary widely from company to company in a manner that we consider largely independent of the underlying cost efficiency of their operating facilities. Further, the inclusion of operating restructuring items which are unpredictable in nature and timing may make comparisons of our operating results between periods more difficult. We also believe adjusted EBITDA and adjusted EBITDA margin are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. Adjusted EBITDA does not represent cash generated from operations as defined by International Financial Reporting Standards ("IFRS") and it is not necessarily indicative of cash available to fund cash needs. Furthermore, adjusted EBITDA does not reflect the impact of a number of items that affect our net income. Adjusted EBITDA and adjusted EBITDA margin are not measures of financial performance under IFRS, and should not be considered as alternatives to measure performance under IFRS. Moreover, because all companies do not calculate adjusted EBITDA and adjusted EBITDA margin in the same manner, these measures as calculated by Western may differ from similar measures as calculated by other companies. A reconciliation between the Company 's net income as reported in accordance with IFRS and adjusted EBITDA is included in the Company's Management's Discussion & Analysis for the quarter ended March 31, 2017, which is available under the Company's profile on SEDAR at www.sedar.com. Also in this report management uses key performance indicators such as net debt, net debt to capitalization and current assets to current liabilities. Net debt is defined as long-term debt less cash and cash equivalents. Net debt to capitalization is a ratio defined as net debt divided by capitalization, with capitalization being the sum of net debt and shareholder's equity. Current assets to current liabilities is defined as total current assets divided by total current liabilities. These key performance indicators are non-GAAP financial measures that do not have a standardized meaning and may not be comparable to similar measures used by other issuers. They are not recognized by IFRS, however, they are meaningful in that they indicate the Company's ability to meet their obligations on an ongoing basis, and indicate whether the Company is more or less leveraged than the prior year. Western is an integrated Canadian forest products company, and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and one remanufacturing plant. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide. On Thursday, May 4, 2017, Western Forest Products Inc. will host a teleconference call at 12:00 p.m. PST (3:00 p.m. EST). To participate in the teleconference please dial 416-340-2219 or 1-800-273-9672. This call will be taped, available one hour after the teleconference, and on replay until May 15, 2017 at 8:59 p.m. PST (11:59 p.m. EST). To hear a complete replay, please call 905-694-9451 / 1-800-408-3053 (passcode: 1792528#).


VANCOUVER, BC--(Marketwired - February 24, 2017) - Traditional methods for reforestation use seeds from local tree populations. With the climate quickly changing, these local trees will be poorly adapted to new environments that not only have warmer temperatures, but also more disease pressures. And climate change isn't just bad for trees. It's also bad for the economic and environmental benefits they provide to Canada -- benefits like wood, jobs, habitat protection and carbon sequestration. Foresters have three options for dealing with this problem: reforest with the same species, but with trees that are better adapted to warmer climates; move species further north or to higher elevations; or select and breed trees that can better withstand climatic stresses or disease. All of these strategies can be successful, but only if we have scientific knowledge about which trees can better withstand a changing climate and the stresses that accompany it. Dr. Sally Aitken of the University of British Columbia (UBC) is leading a team, including Sam Yeaman of the University of Calgary and Richard Hamelin of UBC and Université Laval, that will use genomics to test the ability of trees from different populations to resist heat, cold, drought and disease, and identify the genes and genetic variation involved in climate adaptation. The ultimate goal of the project, valued at $5.8 million, is to develop better reforestation strategies for economically important tree species such as Douglas-fir and lodgepole pine, as well as western larch and jack pine. "Better matching trees with new climates will improve the health and productivity of planted forests. To understand the adaptation of trees to both climate and diseases, we will use genomic tools along with climate modeling and seedling experiments," says Dr. Aitken, a Professor in the Faculty of Forestry. "Our previous research has shown these approaches will give us these answers in a few years rather than in a few decades. The success of this research is dependent on our close collaboration with provincial tree breeders and forest managers." "Our ministry is pleased to be a major partner in the CoAdapTree research project, in collaboration with Dr. Aitken's team at UBC," said Forests, Lands and Natural Resource Operations Minister Steve Thomson. "Together, we are developing important tools to implement climate-based seed transfer. The B.C. government is committed to using the results of this research to improve forest management practices that will benefit all British Columbians." The project, CoAdapTree: Healthy trees for future climates, will provide recommendations for climate-based seed transfer policy to guide foresters in planting trees that will be healthy in new climates in western Canada. Climate-based seed transfer can result in up to 30% greater timber yields, with a proportional impact on the economy and employment, and will also sustain ecological and environmental benefits of forests. "The forestry industry contributed more than $20 billion to Canada's GDP in 2014, and directly and indirectly employed 288,000 people," says Dr. Catalina Lopez-Correa, Chief Scientific Officer and Vice President, Sector Development at Genome BC. "We have been investing in forest research since 2001 and have funded an earlier phase of Dr. Aitken's genomics and climate-change research because this industry is critical to BC's economy and this work will make a major difference to future forest outcomes." The project was awarded through Genome Canada's 2015 Large-Scale Applied Research Project Competition Natural Resources and the Environment: Sector Challenges -- Genomic Solutions. Funders of this work include Genome Canada, Genome BC, Genome Alberta, Genome Quebec, BC Ministry of Forests, Lands and Natural Resource Operations, the Forest Genetics Council of BC, and Natural Resources Canada. It is also funded by forest companies including West Fraser, CanFor, and the Sinclair Group, partners in the Vernon Seed Orchard Company, as well as Western Forest Products Inc., and TimberWest Forest Corp. About Genome British Columbia: Genome British Columbia leads genomics innovation on Canada's West Coast and facilitates the integration of genomics into society. A recognized catalyst for government and industry, Genome BC invests in research, entrepreneurship and commercialization in life sciences to address challenges in key sectors such as health, forestry, fisheries, aquaculture, agri-food, energy, mining and environment. Genome BC partners with many national and international public and private funding organizations to drive BC's bioeconomy. In addition to research, entrepreneurship and commercialization programs, Genome BC is committed to fostering an understanding and appreciation of the life sciences among teachers, students and the general public. www.genomebc.ca


VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 21, 2016) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") announces that the Province of British Columbia has agreed to compensate Western in the amount of $14 million for the partial tenure extinguishment from the Maa'nulth First Nations Final Agreement Act (the "Treaty") that came into effect April 1, 2011. The creation of Treaty Settlement Lands and associated protected area tied to the Treaty resulted in the permanent harvesting rights reduction of 104,000 cubic metres in Tree Farm Licence 44. The Company intends to use the proceeds of compensation to pay down outstanding debt. "We are pleased to have reached a settlement that fairly reflects the value of harvesting rights at the time they were extinguished" said Stephen Williams, the Company's Senior Vice-President, Chief Financial Officer and Corporate Secretary. Western is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and two remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees, and corporate facilities are located in the coastal region of British Columbia.


News Article | February 17, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 16, 2017) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") announced results for the fourth quarter and year ended December 31, 2016. The Company reported fourth quarter adjusted EBITDA of $33.8 million in 2016, compared to adjusted EBITDA of $29.6 million in the same quarter last year, and $35.7 million reported in the third quarter of 2016. Targeted increases in log purchases facilitated higher Western Red Cedar lumber production and sales volumes that largely offset the normal seasonal decline in fourth quarter adjusted EBITDA. Improved log and lumber pricing, continued strength in the commodity lumber market and greater lumber shipments resulted in a 14% increase in fourth quarter adjusted EBITDA, as compared to last year. Notwithstanding adverse harvest conditions, Western achieved its highest fourth quarter adjusted EBITDA in ten years. The Company reported revenue of $293.0 million in the fourth quarter of 2016, as compared to $265.6 million in the same quarter last year, and record quarterly revenue of $322.7 million in the third quarter of 2016. Growing demand and strong pricing for the Company's log and lumber products, and a 3% increase in lumber production, as compared to the same quarter last year, drove the Company's fourth quarter revenue growth. For the year ended December 31, 2016, Western generated adjusted EBITDA of $148.2 million on annual revenue of $1,187.3 million. This represents a 27% increase in adjusted EBITDA as compared to $117.1 million in the prior year, and a 10% increase in revenue as compared to $1,081.9 million in the prior year. "Our record annual adjusted EBITDA and lumber revenues in 2016 were achieved through the successful execution of our strategic initiatives, including our purchasing additional specialty logs to support growth in speciality lumber sales and our increasing commodity lumber production to capitalize on improved pricing for those products," said Don Demens, President and Chief Executive Officer. "Despite uncertainty caused by the Softwood Lumber trade dispute with the United States, we remain committed to implementing our strategy of consolidating and optimizing our coastal business while at the same time building an enhanced platform that will support an accelerated pursuit of growth opportunities." Net income of $36.2 million ($0.09 per diluted share) was reported for the fourth quarter of 2016, as compared to $9.9 million ($0.02 per diluted share) for the fourth quarter of 2015. Stronger operating results were supplemented by non-operating income of $14.1 million for the settlement of a 2011 partial tenure extinguishment, and $8.0 million from the net increase in fair value of the Company's private timberlands. Net income of $94.2 million ($0.24 per diluted share) was reported for the year ending December 31, 2016, as compared to $73.7 million ($0.18 per diluted share) for the prior year. We generated fourth quarter adjusted EBITDA of $33.8 million, an increase of 14% from the same quarter in 2015. Targeted log purchases facilitated increased lumber shipments and improved lumber markets drove higher lumber price realizations. These factors largely offset the normal seasonal decline in fourth quarter adjusted EBITDA. We increased fourth quarter lumber revenue to $220.7 million in 2016, growth of 14% from the same quarter of 2015. Targeted log purchases drove higher production and facilitated a 4% lumber sales volume increase to 236 million board feet. WRC shipments increased 19%, improving the fourth quarter lumber sales mix, and market demand for our products drove an 8% improvement in quarterly average lumber price realization. Fourth quarter log revenue was $55.1 million in 2016, an increase of $1.5 million from the same period in 2015. A strong specialty log sales mix, continued strength in domestic sawlog markets and improved export demand delivered a 9% increase in average log price realizations. These factors more than offset a 9% reduction in sawlog sales volumes as a result of lower harvest levels in the fourth quarter of 2016. By-products revenue was $17.2 million in the fourth quarter of 2016, as compared to $17.6 million in the same period in 2015. By-product revenue declined as a result of lower realized pricing. Lumber production was 242 million board feet, an increase of 3% from the prior year fourth quarter. Increased operating hours and the benefits of recent strategic capital investments drove a 7% increase in lumber production from the Company's seven primary sawmills. Timberlands production decreased by 0.2 million cubic metres as compared to the same quarter of 2015, primarily due to adverse coastal weather conditions. Heavy rain and wind were followed by snow and ice late in the fourth quarter, preventing access to certain harvest areas and resulting in more than $0.9 million in incremental road repairs and other expenses. In combination with a 19% increase in helicopter logging volumes and increased stumpage costs, average fourth quarter log harvest cost rose by 10% as compared to the same period in 2015. Reduced harvest volumes were partially mitigated by a 13% increase in sawlog purchases over the same period of 2015. Higher lumber sales volumes coupled with a relative increase in rail shipments drove a $4.1 million increase in fourth quarter freight costs as compared to the same period of 2015. Selling and administration expense of $6.7 million in the fourth quarter of 2016 increased by $0.1 million from the fourth quarter of 2015. Significantly improved adjusted EBITDA drove higher fourth quarter performance-based compensation, which was offset by the mark-to-market reversal of share-based compensation expense. Fourth quarter other income of $26.0 million in 2016, was a significant increase from other expense of $0.9 million in the same period of 2015. This increase reflects settlement compensation for an April 2011 partial tenure extinguishment, a gain on revaluation of biological assets, and a gain resulting from amendments to the Company's legacy defined benefit pension plans. Fourth quarter finance costs of $1.0 million were $0.1 lower than the same quarter of 2015 as a result of lower average outstanding debt in the period. Operating income in the fourth quarter of 2016 grew by $29.8 million over 2015, and led to higher net income as compared to the same quarter of 2015. Significantly increased other income was partly offset by increased income tax expense. Higher fourth quarter deferred income tax expense of $11.5 million was incurred 2016, as compared to $7.9 million in the same period of 2015, mainly as a result of earnings growth. The funded position of our defined benefit and other retirement benefit plans is estimated at the end of each quarter. A net, after-tax actuarial gain of $5.7 million was realized through other comprehensive income in the fourth quarter of 2016, primarily as a result of the influence of an interest rate increase on the discount rate used to calculate benefit plan liabilities. Western achieved record annual revenue and adjusted EBITDA in 2016, and increased adjusted EBITDA margin to 12.5% as compared to 10.8% in 2015. By executing our log purchase strategy and leveraging our recapitalized manufacturing platform, we maintained our specialty product mix while growing lumber shipments. Lumber revenue in 2016 was $883.5 million, a 15% increase compared to 2015. We increased lumber shipments by 8% to 952 million board feet and achieved higher price realizations. Strong specialty and improved commodity lumber markets delivered an average annual realized lumber price of $928 per thousand board feet, an increase of 6% from 2015. Targeted log purchases facilitated an 11% increase in WRC sales volumes, and higher mill utilization delivered increased production and a 7% increase in commodity lumber shipments. Specialty products represented 56% of total lumber shipments in 2016, consistent with 2015. Log revenue was $235.6 million, a 3% decrease compared to 2015. Strong demand for our logs drove an 18% increase in average realized log price, as compared to 2015, and largely offset the impact of a 19% decrease in log shipments. We directed a greater proportion of log inventories internally to our mills, in part due to improved mill competitiveness. Pulp log pricing and sales volumes were depressed due to reduced pulp log demand on the BC coast. By-product revenue in 2016 was $68.2 million, compared to $68.8 million in 2015. Incremental revenue from increased chip sales volumes was offset primarily by a 3% decrease in average realized chip prices. We increased lumber production to 943 million board feet in 2016, from 891 million board feet in 2015. This was achieved by increasing operating hours at our primary mills and through realizing production efficiencies as a result of recent strategic capital investments. We also accessed significant additional log volumes on the open market to support increased lumber production, including a 13% increase in WRC production. Revenue growth from increased WRC shipments was partly offset by reduced lumber recovery and higher conversion costs associated with specialty production. Total timberlands production volume was 4.4 million cubic metres, compared to 5.1 million cubic metres in 2015. The partial resolution to a contractor rate dispute in the third quarter of 2016 provided minimal harvest volumes in TFL 44; and all timberlands operations were impacted by late 2016 adverse coastal weather conditions, which have carried into the first quarter of 2017. An incremental $0.9 million expense was recognized in the fourth quarter of 2016 to repair timberlands infrastructure damaged as a result of sequential storm events. In addition, log production costs were impacted by higher stumpage costs and a greater proportion of helicopter logging in 2016 as compared to 2015. To overcome a reduced harvest, we supplemented mill log supply by increasing sawlog purchase volumes by 36% and internalizing certain log sorts that would have been sold in past years. Freight costs, which are predominantly denominated in USD, increased by 10% in 2016 to $96.8 million. Increased freight costs were primarily due to the 8% increase in lumber shipments, a weaker CAD, and a relative increase in lumber shipments direct to China. Selling and administration expenses in 2016 were $27.5 million, compared to $22.2 million in 2015. Significantly improved financial performance resulted in higher performance-based compensation expense in 2016, while incremental consulting expenses were incurred for information technology improvements, to facilitate growth, and to address certain legal and professional service requirements. Movement in the Company's common share price, greater outstanding share unit balances, and prior year option forfeitures resulted in a relative increase of $0.8 million in mark-to-market and share-based compensation expenses over those periods. As a percentage of revenues our selling and administration costs were 2.3% for 2016, an increase from the 2.0% reported in 2015. In 2016, Western recorded restructuring expenses of $3.4 million, including $2.2 million of expense related to the closure of the Nanaimo sawmill and other severance costs. This compares to restructuring expenses of $4.3 million in 2015 of which $0.8 million related to the closure of the Nanaimo sawmill, with the remainder reflecting severance costs arising from the consolidation of the Company's Central Island timberlands operations, and the termination of certain sales agent agreements. Other income of $24.2 million was reported in 2016, an increase from the prior year expense of $1.1 million. The significant increase in other income was largely the result of settlement compensation for an April 2011 partial tenure extinguishment, a gain on revaluation of biological assets, and a gain resulting from amendments to the Company's legacy defined benefit pension plans. Other expense of $1.1 million reported in 2015 was the result of asset impairments and remediation provisions offset by net gains on non- core property dispositions. In October 2016, we received $14.1 million in settlement proceeds from the Province of BC for the April 2011 partial tenure extinguishment in TFL 44, reflecting value of approximately $135 per cubic metre of annual allowable cut eliminated. Settlement proceedings are ongoing in respect of compensation for improvements in the area removed from TFL 44 in 2011. At December 31, 2016, we realized an $8.0 million increase in the fair value less costs to sell of our biological assets, primarily driven by log market price increases. The Company's legacy defined benefit plans were amended to eliminate any further benefit accruals effective December 31, 2016. These plan amendments resulted in a $3.8 million past service credit relating to a reduction in future benefit payments. Finance costs decreased by $0.6 million from $5.0 million incurred in 2015 to $4.4 million in 2016, primarily due to reduced interest expense. Net debt decreased by $38.4 million, reducing average outstanding debt in 2016 by $16.7 million as compared to 2015. In 2016, deferred income tax expense of $32.2 million was recognized through net income, primarily relating to operating earnings. In 2015, a lower deferred income tax expense of $7.8 million was recognized through net income reflecting the offset of previously unrecognized deferred income tax assets. In 2016, deferred income tax expense of $0.8 million was recognized through other comprehensive income and was the result of actuarial gains in the Company's legacy defined benefit pension plans. In 2015, deferred income tax recovery of $9.1 million was recognized through other comprehensive income in relation to previously unrecognized deferred income tax assets attributed to those same legacy pension plans. At December 31, 2016, the Company and its subsidiaries had unused non-capital tax losses carried forward totaling approximately $119.0 million, which expire between 2030 and 2035, and can be used to reduce taxable income. Deferred income tax assets related to the unused non-capital losses carried forward have been fully recognized in 2016, as it is probable that future taxable profits will be available against which they can be utilized. In addition, the Company has unused capital losses of approximately $101.9 million, which are available indefinitely. Western has unrecorded deferred income tax assets related to the unused capital losses as they can only be applied against the taxable portion of capital gains, if any, arising in future years. Net income from continuing operations in 2016 was $94.2 million, an increase from the prior year figure of $64.6 million. The significant increase was due primarily to a 69% increase in operating income partly offset by a related increase in deferred income tax expense. The Company had no discontinued operations during 2016. In 2015, the Company reported net income from discontinued operations of $9.1 million on the sale of the former Squamish pulp mill site and related assets for cash proceeds of $21.8 million, which were used to pay down debt and further its strategic capital programs. Western's long-term business objective is to create superior value for shareholders by building a margin- focused log and lumber business of scale to compete successfully in global softwood markets. We believe this will be achieved by maximizing utilization of our forest tenures, to operate efficient, low-cost converting facilities and to produce and sell high-value softwood lumber and logs to global markets. We seek to manage our business with a focus on operating cash flow and maximizing the value of our fibre resource through the production cycle, from the planning of our logging operations to the production, marketing and sale of our log and lumber products. The following strategic initiatives will continue to guide our focus: We have developed a track-record for consistently delivering positive operating income and reporting minimal net debt. We have implemented or announced $101.9 million of strategic capital to strengthen our operating platform and position Western as the only company on the coast of BC capable of consuming the profile of the coastal forest and competitively manufacturing a diverse product mix. Recent capital reinvestment information is presented below under Strategic Capital Program Update. Strategic capital investment completed and activated within the last 18 months have facilitated the consolidation of our manufacturing operations. By advancing the recapitalization and consolidation of our coastal operating base, we have improved the financial performance and stability of our business. We continue to invest in people and systems to create a platform for growth in our existing operations and to facilitate the acceleration of our pursuit of margin-focused growth opportunities. We have grown annual revenue to $1,187.3 million in 2016, more than double the revenue reported in 2009. We continue to optimize our operations and invest in our mills and timberlands to improve margins and grow our business through increased production. The success of our business relationships with First Nations continues to drive incremental log volume and has enabled Western to grow specialty lumber production. We continue to pursue opportunities for long-term, mutually beneficial relationships with coastal First Nations. We have implemented a non-capital margin improvement program to optimize our supply chain and further consolidate our business. From a product marketing perspective, we are delivering on a strategy that drives the production and sale of targeted, high-margin products of scale to selected customers that value our product offerings. We are evaluating all opportunities to grow our margin-focused business and drive shareholder value. Our ongoing reinvestment in and consolidation of our coastal operating base, steady improvements in our operating performance and a strong balance sheet have positioned Western to actively pursue external growth opportunities. We expect near-term pricing volatility caused by uncertainty over the Canada - United States ("US") softwood lumber trade dispute. However, we remain confident that over the mid to long term, growth in the US new home construction market as well as increasing demand from China, combined with reduced supply from the BC Interior due to the impacts of the Mountain Pine Beetle, will deliver an improved pricing environment. We will continue to utilize our newly capitalized, flexible operating platform to target the products and markets that offer the highest margin. Limited log supply due to adverse harvest conditions in late 2016 and early 2017, coupled with growing demand, will support improved pricing of our WRC products ahead of the potential imposition of US duties. The same operating conditions are expected to support the sales of our Niche product lines in 2017. We expect lumber demand in Japan to remain strong in the first half of 2017, and we continue to see opportunity over the medium term to capture a greater share of North American imports as US producers increasingly focus on supplying their domestic market. While the market remains competitive, we believe that our increased market share will lead to pricing leverage over the mid term. We expect our commodity business to continue to benefit from increased demand from a more active US new home construction segment and greater demand from China. Our flexible product offerings are well suited to the Chinese market where the use of softwood lumber is expanding into a wider array of end uses including furniture, door and window components. Limited supply due to adverse late fall and winter harvest conditions as well as stable demand will support pricing in the domestic sawlog market, while strong demand from China and Korea will support export log price realizations. The pulp log market is expected to improve as challenging harvest conditions have brought pulp log inventories into balance. The twelve-month standstill period of the Softwood Lumber Agreement, which precluded trade action by the US, expired October 12, 2016. In November 2016, a coalition of US lumber producers petitioned the US Department of Commerce ("DOC") and International Trade Commission ("ITC") to investigate alleged subsidies to Canadian lumber producers and initiate countervailing and anti-dumping duties. Preliminary findings of that investigation are expected regarding countervailing duties in April 2017 and in the second quarter of 2017 for anti-dumping duties. We intend to maintain our strong balance sheet and diversified product and geographic mix as we await the outcome of the trade discussions. We continue to implement a strategic capital program that is designed to position Western as the only company on the coast of BC capable of sustainably consuming the complete profile of the coastal forest and competitively manufacturing a diverse product mix for global markets. Our strategic capital program is focused on the installation of proven technology that will deliver top quartile performance and improve our ability to manufacture the products that yield the best margin. In addition to investments in our manufacturing assets, we also allocate capital to strategic, high-return projects involving our information systems, timberlands assets, and forest inventories. We have recently approved a further $4.2 million capital investment for our Chemainus sawmill to improve the handling of WRC timbers and reduce production bottlenecks. We expect the project to be completed in the third quarter of 2017 and make Chemainus the leading WRC timber mill on the BC coast. With this project, we have announced plans for $101.9 million of our $125.0 million strategic capital program. Through the end of 2016, we have implemented and capitalized $89.1 million under that program. In the fourth quarter of 2016, we continued to advance the Duke Point planer modernization and timberlands standing inventory mapping initiative. The Duke Point planer modernization is ongoing with completion scheduled for 2017. Results of the timberlands LiDAR mapping initiative are being evaluated with the remaining data to be gathered as weather permits, and we continue to progress through our information technology upgrades. Uncertainty arising from the Softwood Lumber trade dispute has caused us to defer the commencement of additional potentially significant capital projects plans, however a number of high-return, low-cost strategic capital projects are in the late stages of planning or ready for implementation. There have been no disposals of non-core assets during 2016. On February 6, 2015, Western announced the completion of the sale of its former pulp mill site and related assets in Squamish, BC at a purchase price of $21.8 million. The Company used the proceeds of sale to pay down outstanding debt and to further its strategic capital programs. We continue to evaluate the timing of sale of non-core assets and expect to accelerate the marketing and disposition of certain non-core assets. This press release contains statements which constitute forward-looking statements and forward-looking information within the meaning of applicable securities laws. Those statements and information appear in a number of places in this document and include statements and information regarding our current intent, belief or expectations primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and our future operating performance, objectives and strategies. Such statements and information may be indicated by words such as "estimate", "expect", "anticipate", "plan", "intend", "believe", "should", "may" and similar words and phrases. Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include, among others: general economic conditions, competition and selling prices, changes in foreign currency exchange rates, labour disruptions, natural disasters, relations with First Nations groups, changes in laws, regulations or public policy, misjudgements in the course of preparing forward-looking statements or information, changes in opportunities and other factors referenced under the "Risks and Uncertainties" section of our MD&A in our 2016 Annual Report dated February 16, 2017. All written and oral forward- looking statements or information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Except as required by law, Western does not expect to update forward-looking statements or information as conditions change. Reference is made in this report to adjusted EBITDA which is defined as operating income prior to operating restructuring items and other income, plus amortization of property, plant, equipment, and intangible assets, impairment adjustments, and changes in fair value of biological assets. Adjusted EBITDA margin is EBITDA presented as a proportion of revenue. Western uses adjusted EBITDA and adjusted EBITDA margin as benchmark measurements of our own operating results and as benchmarks relative to our competitors. We consider adjusted EBITDA to be a meaningful supplement to operating income as a performance measure primarily because amortization expense, impairment adjustments and changes in the fair value of biological assets are non-cash costs, and vary widely from company to company in a manner that we consider largely independent of the underlying cost efficiency of their operating facilities. Further, the inclusion of operating restructuring items which are unpredictable in nature and timing may make comparisons of our operating results between periods more difficult. We also believe adjusted EBITDA and adjusted EBITDA margin are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. Adjusted EBITDA does not represent cash generated from operations as defined by International Financial Reporting Standards ("IFRS") and it is not necessarily indicative of cash available to fund cash needs. Furthermore, adjusted EBITDA does not reflect the impact of a number of items that affect our net income. Adjusted EBITDA and adjusted EBITDA margin are not measures of financial performance under IFRS, and should not be considered as alternatives to measure performance under IFRS. Moreover, because all companies do not calculate adjusted EBITDA and adjusted EBITDA margin in the same manner, these measures as calculated by Western may differ from similar measures as calculated by other companies. A reconciliation between the Company's net income as reported in accordance with IFRS and adjusted EBITDA is included in the Company's Management's Discussion & Analysis for the year ended December 31, 2016, which is available under the Company's profile on SEDAR at www.sedar.com. Also in this report management uses key performance indicators such as net debt, net debt to capitalization and current assets to current liabilities. Net debt is defined as long-term debt less cash and cash equivalents. Net debt to capitalization is a ratio defined as net debt divided by capitalization, with capitalization being the sum of net debt and shareholder's equity. Current assets to current liabilities is defined as total current assets divided by total current liabilities. These key performance indicators are non-GAAP financial measures that do not have a standardized meaning and may not be comparable to similar measures used by other issuers. They are not recognized by IFRS, however, they are meaningful in that they indicate the Company's ability to meet their obligations on an ongoing basis, and indicate whether the Company is more or less leveraged than the prior year. Western is an integrated Canadian forest products company, and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and one remanufacturing plant. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide. On Friday, February 17, 2017, Western Forest Products Inc. will host a teleconference call at 9:00 a.m. PST (12:00 p.m. EST). To participate in the teleconference please dial 416-340-2218 or 1-866-223-7781. This call will be taped, available one hour after the teleconference, and on replay until February 28, 2017 at 8:59 p.m. PST (11:59 p.m. EST). To hear a complete replay, please call 905-694-9451 / 1-800-408-3053 (passcode: 3278865).


News Article | November 4, 2016
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 3, 2016) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") reported adjusted EBITDA of $35.7 million in the third quarter of 2016, compared to adjusted EBITDA of $28.7 million reported in the same quarter last year, and $43.0 million reported in the second quarter of 2016. A significant increase in lumber and export log sales volumes, combined with improved pricing and a strengthening commodity lumber market delivered a 24% increase in adjusted EBITDA in the third quarter of 2016, as compared to the same quarter last year. A normal seasonal decline in log and lumber sales mix contributed to reduced adjusted EBITDA as compared to the second quarter of 2016. The Company successfully grew revenue to $322.7 million in the third quarter of 2016, as compared to $278.5 million in the same quarter last year, and $301.8 million in the second quarter of 2016. Growing demand and strong pricing for our products, in particular for commodity lumber, delivered Company-record quarterly revenue. "We successfully leveraged the recent investments in our operations to drive increased production and sales volumes," said Don Demens, President and Chief Executive Officer. "Greater mill utilization has improved our ability to access logs in the open market, which is a key component of our growth strategy." Operating income prior to restructuring items and other income increased 22% to $26.2 million in the third quarter of 2016, compared $21.4 million in the same quarter last year and $33.7 million in the second quarter of 2016. Net income of $16.8 million ($0.04 per diluted share) was reported for the third quarter of 2016, compared to $17.1 million ($0.04 per diluted share) for the same quarter last year and $23.8 million ($0.06 per diluted share) in the second quarter of 2016. Subsequent to period-end, on October 21, 2016, the Company received compensation of $14.0 million from the Province of British Columbia in settlement for the partial tenure extinguishment from the Maa'nulth First Nations Final Agreement Act (the "Treaty"). Compensation received represents the value at the time of the tenure extinguishment in April 2011. The creation of Treaty Settlement Lands, and associated protected area, resulted in a permanent harvesting rights reduction of 104,000 cubic metres in Tree Farm Licence 44. Upon receipt, the settlement proceeds were used to reduce our drawings on the Company's revolving term loan facility. In the third quarter of 2016 we generated adjusted EBITDA of $35.7 million, an increase of 24% from adjusted EBITDA of $28.7 million in the same quarter last year. We achieved these results by increasing log and lumber shipments and improving the operating performance of our sawmills. Third quarter lumber revenue increased 16% to $235.6 million, as compared to the same quarter of 2015. Over that same period, we increased lumber shipments by 13% to 257 million board feet and achieved higher price realizations. Strong specialty and improved commodity lumber markets delivered a quarterly average realized lumber price of $917 per thousand board feet. Higher overall shipment volumes were achieved through increases of 15%, 31% and 16% in Western Red Cedar ("WRC"), Niche and Commodity lumber sales, respectively, as compared to the same period last year. Third quarter log revenue was $70.0 million in 2016, a 22% increase from the same period in 2015. Market log demand drove a 7% increase in sawlog sales volumes and a 14% increase in average realized sawlog pricing. These factors more than offset lower average realized pulp log pricing, which remains depressed due to reduced coastal pulp demand. By-product revenue was $17.1 million in the third quarter of 2016, a 2% decrease as compared the same period in 2015. By-product revenue declined as the impact of higher sales volumes was more than offset by reduced pricing. Third quarter lumber production was 248 million board feet, a 17% improvement over the same period of 2015. The benefits of recent strategic capital investments drove increased operating performance from the Company's seven primary sawmills and delivered our highest quarterly production volume since 2007, when the production mix from operating eight primary sawmills included a higher component of commodity lumber. In addition, overall operating hours increased as a result of comparatively less operating downtime for capital project implementations. A strong opening log inventory and successful sawlog purchase program contributed to increased specialty lumber production as well as an overall production increase from our primary sawmills and third party facilities. Timberlands production volume in the third quarter was 1.2 million cubic metres, consistent with the third quarter of 2015. Harvest volume decreased from the second quarter of 2016 in line with the historical seasonal third quarter decline in production. The partial resolution to a contractor rate dispute in July 2016 in our TFL 44 located near Port Alberni provided minimal harvest volume to the third quarter. Average log harvest costs were flat as a 33% reduction in higher-cost helicopter logging volumes largely offset increased stumpage costs related to specialty log harvesting. Third quarter freight costs were $25.5 million in 2016, an increase of 11% compared to the same period of 2015. Increased freight costs were due to increased log and lumber shipments. Selling and administration expense in the third quarter of 2016 increased to $7.3 million from $5.5 million in the same period of 2015. An increase in the value of the Company's common share price, period-over-period, and more outstanding share units resulted in a relative increase of $0.8 million in mark-to-market and share-based compensation expenses. The comparative period included an expense recovery of $0.4 million as a result of option forfeitures. Also reflected in the increased selling and administration expense are incremental information technology and other administrative expenses of $0.4 million, incurred partly as a result of ongoing system and process improvement initiatives. Net income for the third quarter of 2016 was $16.8 million, consistent with the same period of 2015. An increase in operating income of 32% was partly offset by increased tax expense. Deferred income tax expense of $6.1 million was incurred in the third quarter of 2016 as compared to a recovery of $0.1 million in the same period of 2015. In past quarters, the recognition of additional deferred income tax assets largely offset the recognition of deferred tax expense. The funded position of our defined benefit and other retirement benefit plans is estimated at the end of each quarter. A decrease in the discount rate used to calculate plan liabilities in the third quarter of 2016, partially offset by improved plan asset performance, resulted in a net after-tax actuarial loss of $0.6 million included in other comprehensive income. Adjusted EBITDA for the first nine months of 2016 was $114.4 million, a 31% improvement over the same period in 2015. Adjusted EBITDA margin improved to 12.8% as compared to 10.7% in the same period in 2015. Improved log and lumber pricing, a 9% increase in lumber sales volumes and an improved domestic log sales mix were the primary drivers for an increased adjusted EBITDA. Our results have also benefitted from a Canadian dollar ("CAD") to US dollar ("USD") exchange rate that was on average 5% weaker as compared to the same period last year. Lumber revenue grew by 15% to $662.8 million in the first nine months of 2016 as compared to the same period last year. Maintaining our specialty sales mix as we grew sales volumes, realizing improved pricing for our specialty and commodity lumber products, and the benefits of a weaker CAD relative to USD have led to strong lumber revenue performance year-to-date. Log revenue for the first three quarters of 2016 decreased by 5% to $180.5 million, as significant increases in average realized pricing partially offset a 22% decline in external sales volumes as a result of lower harvest volumes. Pulp log price realizations declined as the pulp market continues to be impacted by high pulp log inventories on the coast of BC. By-product sales remained flat period-over-period. Lumber production in the first three quarters of 2016 was 701 million board feet, up from 657 million board feet in 2015. Increased lumber production was supported by a 45% increase in sawlog purchases. Recent completed strategic capital investments have driven improved production from our Duke Point, Saltair, and Ladysmith sawmills year-to-date. Conversion costs have increased due to higher secondary processing volumes associated with increased specialty production. Total timberlands production volume was 3.5 million cubic metres in the first three quarters of 2016, compared to 4.1 million cubic metres in the same period last year. Reduced production volume as compared to the same period last year is largely the result of a contractor rate dispute, for which a partial interim resolution was reached early in the third quarter of 2016. In addition, a more normal winter in our timberlands in the first quarter of 2016 partially delayed first half harvest. An increase in average log costs of 6% in the first three quarters of 2016 reflects comparatively less timberlands production volume, a greater proportion of higher-cost helicopter logging and a coastal stumpage rate increase which became effective March 1, 2016. We supplemented harvest by increasing sawlog purchases by 45% as compared to the first three quarters of 2015. Selling and administration expenses in the first three quarters of 2016 increased to $23.5 million from $18.3 million in the same period of 2015. Movement in the Company's common share price as well as greater outstanding share unit balances resulted in a relative increase of $1.6 million in mark-to-market and share-based compensation expenses over those periods. Included in the increased selling and administration expense are those expenses identified above and higher performance-based compensation as a result of improved financial performance. Incremental consulting expenses were incurred to facilitate information technology improvements, and address certain legal and professional service requirements. Third quarter finance costs were $1.2 million in 2016, $0.1 million lower than the same quarter of last year as a reduction in average outstanding debt was offset by increased utilization of the revolving credit facility in 2016. Average outstanding debt in the third quarter was reduced from $72.8 million in 2015 to $59.0 million in 2016. During the third quarter of 2016, the Company recognized current income tax of $0.1 million and deferred income tax expense of $6.1 million on net income arising from continuing operations. An offsetting deferred income tax recovery of $0.2 million, related to actuarial losses on the Company's defined benefit plans, was recognized through other comprehensive income. In the third quarter we continued to implement our strategy of optimizing our operations and investing in our mills to improve margins and grow our business through increased production. Key operational priorities in support of our strategy include: The gradual improvement in United States ("US") new home construction and strength of the repair and renovation segment continue to drive increased demand for our log and lumber products. Competing demand from China, particularly for our Commodity products, has contributed to stable pricing, while the Japanese market remains competitive. Commodity lumber markets performed as expected in the third quarter of 2016 as Benchmark 2x4 KD Western SPF prices closed the quarter 19.7% higher than in the same period last year, and 3.5% higher than in the second quarter of 2016. We expect demand trends to continue which should support increased commodity consumption and pricing. Demand and pricing for WRC and Niche lumber has historically declined in the fourth quarter as distributors reduce inventories ahead of the winter season. Consistent with the fourth quarter last year, we expect seasonally reduced demand for WRC and Niche lumber to be partially offset by continued strength in the repair and renovation market. The Japanese lumber market remains competitive. We see additional opportunity over the medium term to capture a greater share of North American imports into that market as US producers continue to repatriate volumes to their domestic market. We anticipate export and domestic sawlog markets will remain strong in the fourth quarter of 2016. Strong demand and limited availability will support the domestic sawlog market. Balanced inventory levels in the Asian log markets are expected to support modest export log price increases through the balance of 2016. Pulp log prices are expected to remain depressed due to a combination of high log inventories and lower consumption levels from coastal BC pulp mills. The twelve-month standstill period of the Softwood Lumber Agreement, which precluded trade action by the United States, expired October 11, 2016. Discussions regarding a replacement of the Softwood Lumber Agreement continue between Canadian and US government representatives. We are supportive of these efforts but uncertainty remains regarding a solution, creating market volatility. With no new agreement in place, there could be US government trade action against Canadian softwood lumber imports at any time. We intend to maintain our strong balance sheet and diversified product and geographic mix as we await the outcome of the trade discussions. We continue to implement a strategic capital program that is designed to position Western as the only company on the coast of BC capable of sustainably consuming the complete profile of the coastal forest and competitively manufacturing a diverse product mix for global markets. Our strategic capital program is focused on the installation of proven technology that will deliver top quartile performance and improve our ability to manufacture the products that yield the best margin. In addition to investments in our manufacturing assets, we also invest capital into strategic, high-return projects involving our information systems, timberlands assets, and forest inventories. We have announced plans for $97.7 million of our $125.0 million strategic capital program. Through the end of the third quarter of 2016, we have implemented and capitalized $88.1 million under that program. Strategic capital invested in the third quarter of 2016 was $1.6 million. In the third quarter of 2016, we completed the latest phase of the Duke Point sawmill modernization and we completed 80% of the data collection phase of the timberlands standing inventory mapping initiative. The Duke Point planer modernization is ongoing, early results of the timberlands LiDAR mapping initiative are being evaluated, and we continue to progress through our information technology upgrades. These projects will continue through the end of 2016. This press release contains statements which constitute forward-looking statements and forward-looking information within the meaning of applicable securities laws. Those statements and information appear in a number of places in this document and include statements and information regarding our current intent, belief or expectations primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and our future operating performance, objectives and strategies. Such statements and information may be indicated by words such as "estimate", "expect", "anticipate", "plan", "intend", "believe", "should", "may" and similar words and phrases. Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include, among others: general economic conditions, competition and selling prices, changes in foreign currency exchange rates, labour disruptions, natural disasters, relations with First Nations groups, changes in laws, regulations or public policy, misjudgements in the course of preparing forward-looking statements or information, changes in opportunities and other factors referenced under the "Risks and Uncertainties" section of our MD&A in our 2015 Annual Report dated February 17, 2016. All written and oral forward-looking statements or information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Except as required by law, Western does not expect to update forward-looking statements or information as conditions change. Reference is made in this report to adjusted EBITDA which is defined as operating income prior to operating restructuring items and other income, plus amortization of property, plant, equipment, and intangible assets, impairment adjustments, and changes in fair value of biological assets. Adjusted EBITDA margin is EBITDA presented as a proportion of revenue. Western uses adjusted EBITDA and adjusted EBITDA margin as benchmark measurements of our own operating results and as benchmarks relative to our competitors. We consider adjusted EBITDA to be a meaningful supplement to operating income as a performance measure primarily because amortization expense, impairment adjustments and changes in the fair value of biological assets are non-cash costs, and vary widely from company to company in a manner that we consider largely independent of the underlying cost efficiency of their operating facilities. Further, the inclusion of operating restructuring items which are unpredictable in nature and timing may make comparisons of our operating results between periods more difficult. We also believe adjusted EBITDA and adjusted EBITDA margin are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. Adjusted EBITDA does not represent cash generated from operations as defined by International Financial Reporting Standards ("IFRS") and it is not necessarily indicative of cash available to fund cash needs. Furthermore, adjusted EBITDA does not reflect the impact of a number of items that affect our net income. Adjusted EBITDA and adjusted EBITDA margin are not measures of financial performance under IFRS, and should not be considered as alternatives to measure performance under IFRS. Moreover, because all companies do not calculate adjusted EBITDA and adjusted EBITDA margin in the same manner, these measures as calculated by Western may differ from similar measures as calculated by other companies. A reconciliation between the Company's net income as reported in accordance with IFRS and adjusted EBITDA is included in the Company's Management's Discussion & Analysis for the quarter ended September 30, 2016, which is available under the Company's profile on SEDAR at www.sedar.com. Also in this report management uses key performance indicators such as net debt, net debt to capitalization and current assets to current liabilities. Net debt is defined as long-term debt less cash and cash equivalents. Net debt to capitalization is a ratio defined as net debt divided by capitalization, with capitalization being the sum of net debt and shareholder's equity. Current assets to current liabilities is defined as total current assets divided by total current liabilities. These key performance indicators are non-GAAP financial measures that do not have a standardized meaning and may not be comparable to similar measures used by other issuers. They are not recognized by IFRS, however, they are meaningful in that they indicate the Company's ability to meet their obligations on an ongoing basis, and indicate whether the Company is more or less leveraged than the prior year. Western is an integrated Canadian forest products company, and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and two remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide. On Friday, November 4, 2016, Western Forest Products Inc. will host a teleconference call at 9:00 a.m. PST (12:00 p.m. EST). To participate in the teleconference please dial 416-340-2218 or 1-866-223-7781. This call will be taped, available one hour after the teleconference, and on replay until November 15, 2016 at 8:59 p.m. PST (11:59 p.m. EST). To hear a complete replay, please call 905-694-9451 / 1-800-408-3053 (passcode: 3190772).


News Article | February 17, 2017
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 16, 2017) - Western Forest Products Inc. (TSX:WEF) ("Western" or the "Company") is pleased to confirm that a quarterly dividend of $0.02 per share will be paid with respect to the Company's first fiscal quarter of 2017 to shareholders of record as at the close of business on Wednesday, March 1, 2017 and will be distributed on or about Friday, March 17, 2017. The dividend will return a portion of the Company's net cash to shareholders, after taking into consideration the Company's liquidity and ongoing capital needs. The Board of Directors will review the amount of the dividend on a quarterly basis. This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Western is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer. The Company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and one remanufacturing plant. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia, with sales worldwide.

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