Archive for the ‘Fortress Paper Press Release’ Category

Fortress Paper Commences Start-Up Phase at Fortress Specialty Cellulose Mill

Posted: Thursday, November 24th, 2011

VANCOUVER, BRITISH COLUMBIA-(Marketwire – Nov. 24, 2011)

Fortress Paper Ltd. (“Fortress Paper” or the “Company”) (TSX:FTP) announced today that it has initiated the final stages of the conversion project at its Fortress Specialty Cellulose Mill. The mill has commenced its start-up phase with final process testing, which will include cold and hot water trials, together with the testing of safety systems scheduled to occur over the coming days. Production of dissolving pulp beginning with wood chips cooking is expected to commence shortly thereafter.

The minor delay in the scheduled completion of the conversion project has resulted from: (1) the previously announced unexpected walkout in October of construction employees of contractors engaged by the Company; (2) the extra time subsequently required upon the return of the workers to fully ramp-up construction activities at the site; (3) completion of identified improvements to infrastructure relating to buildings, supports and the chip tower inter-connection; and (4) implementation of enhancements to the mill’s safety and control systems.

Chad Wasilenkoff, Chairman and Chief Executive Officer of Fortress Paper, commented: “We look forward to the imminent production of dissolving pulp, which will signify an important milestone in the history of Fortress Paper. We believe that the implementation of supplemental process control testing will provide for a more efficient ramp-up to commercial production.”

The completion of the conversion project is currently materially on budget, with the exception of costs resulting from the unexpected walkout of construction workers which remain to be quantified. The cogeneration project at the Fortress Specialty Cellulose Mill is proceeding substantially on schedule, and is expected to be completed in the third quarter of 2012.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business includes specialty pulp produced at the Fortress Specialty Cellulose Mill, which is currently in the process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements regarding the timing of completion of its conversion project and the commencement of dissolving pulp production. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks relating to potential disruptions to production and delivery, regulatory requirements, changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of required materials, foreign exchange fluctuations, labour relations, dependence on major customers, and other risk factors listed from time to time in the Company’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

SOURCES:

Fortress Paper Ltd.

Marketwire

Fortress Paper Announces Third Quarter 2011 Results

Posted: Monday, November 7th, 2011

Fortress Paper Ltd. (“Fortress Paper” or the “Company”) reported 2011 third quarter EBITDA loss of $0.8 million on sales of $84.0 million. For the second quarter of 2011 EBITDA was $4.6 million on sales of $89.9 million and for the third quarter of 2010 EBITDA was $8.8 million on sales of $87.0 million.

Fortress reported an adjusted net loss of $7.8 million for the third quarter of 2011 or diluted adjusted loss per share of $0.54. In the second quarter of 2011 the Company reported an adjusted net loss of $1.0 million or a diluted adjusted loss per share of $0.07. For the third quarter of 2010 the Company reported adjusted net income of $3.7 million or diluted adjusted earnings per share of $0.28.

Similar to the prior quarter, the Pulp Segment produced specialty pulp throughout the quarter which resulted in comparative cost per tonne, but a lower price relative to the prior quarter due to a deterioration in the premium realized relative to the second quarter. As previously disclosed, the necessary shut-down of the mill for conversion to dissolving pulp was re-scheduled and we experienced a temporary work delay as a result of an unexpected walkout by unionized construction employees. As a result, we now expect that dissolving pulp production will commence no later than in mid-November 2011. Dissolving pulp sales are anticipated to provide significantly higher margins than previous NBHK and specialty pulp sales.

The Wallpaper Segment produced another strong quarter which was comparable to the previous quarter result. Sales were strong throughout the quarter and margins remained stable.

The challenges experienced by the Security and Specialty Paper Segment continued in the third quarter. An increase in security paper theoretical capacity at the Landqart mill from 2,500 tonnes to 10,000 tonnes became available at a time where there was a general softening in banknote orders industry wide, due in part to a delay in the re-design of the Euro and Swiss Franc banknotes, resulting in primarily smaller legacy orders being produced at the Landqart Mill. While high raw material prices, a strong Swiss currency together with low utilization have contributed to another difficult quarter, the Landqart Mill is now in the process of overcoming the low utilization with recent new contract orders representing a significant portion of Landqart’s 2012 banknote capacity.

EBITDA is defined as net income before interest, income taxes, depreciation, amortization, non-operating income and expenses and stock based compensation which the Company considers to be a key performance indicator. Adjusted net income (loss) is calculated as net income (loss) less specific items affecting comparability with prior periods and adjusted net income (loss) per share is calculated as adjusted net income (loss) divided by the weighted average number of shares outstanding in the period. EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are not generally accepted earnings measures and should not be considered as an alternative to net income or cash flows as determined in accordance with Canadian GAAP. As there is no standardized method of calculating these measures, the Company’s EBITDA, adjusted net income (loss) and adjusted net income (loss) per share may not be directly comparable with similarly titled measures used by other companies.

Management’s Outlook

This was our final quarter in the specialty pulp market as the focus now turns towards the shutdown and conversion to dissolving pulp. The fourth quarter of 2011 will be one of significant transition as conversion, testing and ramp up towards full production of dissolving pulp will re-define our Pulp Segment.

EBITDA from the non-woven wallpaper base segment was down only 4% from the prior quarter as we completed an additional upgrade of our facility during the annual August maintenance shutdown. The upgrade was successful and has resulted in over 10% additional capacity compared to the total capacity in 2010. Margins remain strong and the order log is healthy.

The security and specialty paper segment experienced another challenging quarter. The converted PM1 high security paper-machine is performing to specifications; however, similar to the first and second quarter of 2011, the Landqart mill’s third quarter 2011 results were impacted by high raw material costs and industry over-capacity due in part to the postponement of several major currencies. In addition, the strong Swiss exchange rate continues to have a negative impact on the operational cost structure of the mill. With recent banknote orders, utilization will improve and capacity of both paper machines is expected to be required to meet demands through 2012.

Selected Financial Information

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, our unaudited consolidated financial statements as at and for the three and nine month periods ended September 30, 2011 and the related notes thereon and our Management’s Discussion and Analysis filed on SEDAR.

Three Months Ended September 30, 2011
(thousands of dollars, except per unit amounts and shipments, unaudited) Q3 2011 Q2 2011 Q3 2010
Sales     83,995    89,906    86,972
EBITDA1        (758 )      4,601      8,800
Operating income (loss)     (4,876 )        619      5,932
Net income (loss)     (7,237 )      2,907      5,232
Adjusted net (loss) income     (7,762 )       (982 )     3,749
Paper Shipments (tonnes)     13,383    14,670    16,452
Pulp Shipments (tonnes)     55,918    54,384    60,469
1 See net income to EBITDA reconciliation.
Net income to EBITDA reconciliation:
(thousands of dollars, unaudited)    Q3 2011 Q2 2011 Q3 2010
Net income (loss)        (7,237 )       2,907      5,232
Income tax expense         2,051         740      2,063
Foreign exchange (gain) loss          (525 )      (3,889 )     (1,483 )
Net interest expense            835          861        120
Amortization         3,668       3,394      2,229
Stock based compensation           450         588        639
EBITDA           (758 )       4,601      8,800

The Company

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business includes NBHK produced at the Fortress Specialty Cellulose Mill currently in process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

Conference Call

A conference call to discuss the financial results for the third quarter 2011 will be held on November 8, 2011 at 9:30 a.m. (PST). To attend the conference call, please dial one of the following numbers:

North America: 1-877-353-9586

International: 1-403-532-8075

Participant pass code: 98030#

Conference reference No.: 656044

A replay of the conference call will be available for 7 days. To access the replay, listeners may dial 1-877-353-9587 from North America or403-699-1055 International. The conference reference number is 656044 followed by the number sign and the participant pass code to access the replay is 98030 followed by the number sign.

Forward-Looking Statements

Some information in this news release contains forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. The reader is cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, those relating to damage to our reputation, competition, maintaining our market position, marketability and price of our products, technology and protection of our intellectual property, dependence on our major customers, fluctuations in the price and supply of raw materials, fluctuations in foreign exchange and other risk factors detailed in our filings with Canadian securities regulatory authorities. These risks, as well as others, could cause actual results and events to vary significantly. Fortress Paper Ltd. does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking statements.

 

SOURCES: MarketwireFortress Paper

Fortress Paper Announces the Commencement of the Final Phase of the Dissolving Pulp Conversion Project and the Signing of New Banknote Paper Orders

Posted: Wednesday, October 12th, 2011

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 12, 2011) - Fortress Paper Ltd. (www.fortresspaper.com) (“Fortress” or the “Company”) (TSX:FTP) wishes to announce the commencement of the final phase of the dissolving pulp conversion project at its Fortress Specialty Cellulose Mill in Thurso, Quebec and the signing of new banknote paper orders at its Landqart Mill in Landquart, Switzerland.

Thurso Quebec:

The Fortress Specialty Cellulose Mill was purchased by Fortress in early 2010 with the plan to convert the NBHK mill to a dissolving pulp producer commencing in May 2011. Moreover, the construction of a cogeneration facility to provide 18.8 megawatts per annum of green power to Hydro Quebec for a 15 year term has also recently broken ground, and is scheduled for completion in the second half of 2012.

Peter Vinall, Chief Executive Officer of Fortress Specialty Cellulose, commented: “The Thurso mill conversion has entered the final shutdown phase which represents the ending of NBHK production at the mill. We have mobilized a workforce of over 800 workers on site to assist with final mill connections and de-bottlenecking work. When the mill is restarted in early November it will be a low cost, high quality dissolving pulp producer with an annual production capacity of approximately 200,000 tonnes.”

Landqart Switzerland:

Fortress Paper’s Lanqart Mill reports the signing of new banknote paper contracts for 2012, which represent a significant portion of the mill’s annual banknote production capacity.

Chad Wasilenkoff, Chief Executive Officer of Fortress Paper, commented: “Our Landqart Mill was among the winning bids for a number of banknote contracts. Bidding on contracts of this volume would not have been possible prior to our recent PM1 banknote machine upgrade, which increased our overall annual production capacity from 2,500 to 10,000 tonnes.”

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business includes specialty pulp produced at the Fortress Specialty Cellulose Mill, which is currently in the process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements regarding the timing of completion of its conversion project and cogeneration facility. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks relating to potential disruptions to production and delivery, regulatory requirements, changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of required materials, foreign exchange fluctuations, labour relations, dependence on major customers, and other risk factors listed from time to time in the Company’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

SOURCE: Marketwire 

 

Fortress Paper Provides Update on Dissolving Pulp Conversion Project

Posted: Friday, September 2nd, 2011

c. (“Fortress” or the “Company”) (TSX:FTP) wishes to report that the construction relating to the conversion of the Fortress Specialty Cellulose Mill from a NBHK pulp to a dissolving pulp operation is proceeding substantially on schedule. However, due to rescheduling of the delivery and installation of specialized equipment, the enhancement of certain processes, and other ancillary matters, the Company has decided to marginally delay the necessary shut down of the mill required to make tie-ins and upgrades on existing equipment. Accordingly, the production of dissolving pulp is now scheduled to commence in early November 2011. The Company believes that the enhancements to certain processes will provide for a smoother start up and ramp up to full production capacity.

The deferment in the production of dissolving pulp is partially mitigated by the mill’s existing production of specialty pulp which yields a higher margin as compared to NBHK pulp. This specialty pulp is manufactured in strict accordance with certain technical specifications requested by the Company’s customers. The Company believes that, as a result of the extensive development and training experience derived from achieving the tolerances required for this unique specialty pulp, the mill will be positioned for a more efficient transition to dissolving pulp production later this year.

SOURCE: Marketwire

Fortress Paper Announces Second Quarter 2011 Results

Posted: Tuesday, August 9th, 2011

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 8, 2011) -

Fortress Paper Ltd. (TSX:FTP) (“Fortress Paper” or the “Company”) reported 2011 second quarter EBITDA of $4.6 million on sales of $90.3 million. For the first quarter of 2011 EBITDA was $1.0 million on sales of $85.5 million and for the three months ended June 30, 2010 EBITDA was $8.3 million on sales of $60.5 million.

Fortress reported adjusted net loss of $1.0 million for the second quarter of 2011 or diluted adjusted loss per share of $0.07. In the first quarter of 2011 the Company reported adjusted net loss of $5.6 million or diluted adjusted loss per share of $0.42. For the second quarter of 2010 the Company reported adjusted net income of $4.5 million or diluted adjusted earnings per share of $0.39.

The Pulp Segment produced operating earnings of $3.3 million in the second quarter of 2011. This result reflects the innovation of our team to tailor a unique specialty product which enabled us to realize significantly higher pricing and a margin that could not have been attained producing traditional NBHK. Not only did this provide improved financial results, but through the extensive development and training that occurred to achieve the tolerances required for this new specialty grade pulp, we are better prepared for the coming transition to dissolving pulp production.

The non-woven wallpaper base segment nearly equaled its record first quarter performance with operating earnings of $6.8 million. Margins remain strong and the order log is healthy. We will complete an additional upgrade to our facility during our annual August maintenance shutdown. This will add approximately 10% additional capacity which is expected to have a positive impact starting in the third quarter of 2011. The waste recycling plant continues to increase the overall efficiency of the mill allowing us to further improve our competitive position.

The security and specialty paper segment experienced another challenging quarter with an operating loss of $6.8 million. The newly converted PM1 to a high security paper-machine is performing to specifications; however, similar to the first quarter of 2011, the Landqart mill second quarter 2011 results were impacted by high raw material costs and industry overcapacity due in part to the postponement of implementation of several major currencies. In addition, the strong Swiss currency continues to have a negative impact on the operational cost structure of the mill. As previously reported, the mill has consolidated production of bank note and security papers into PM1 and has temporarily suspended the commercial operation of the smaller PM2 which will be utilized for trials and sample production until such time as this additional capacity is required.

EBITDA is defined as net income before interest, income taxes, depreciation, amortization, non-operating income and expenses and stock based compensation which the Company considers to be a key performance indicator. Adjusted net income (loss) is calculated as net income (loss) less specific items affecting comparability with prior periods and adjusted net income (loss) per share is calculated as adjusted net income (loss) divided by the weighted average number of shares outstanding in the period. EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are not generally accepted earnings measures and should not be considered as an alternative to net income or cash flows as determined in accordance with Canadian GAAP. As there is no standardized method of calculating these measures, the Company’s EBITDA, adjusted net income (loss) and adjusted net income (loss) per share may not be directly comparable with similarly titled measures used by other companies.

Selected Financial Information

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, our unaudited consolidated financial statements as at and for the three and six month periods ended June 30, 2011 and the related notes thereon and our Management’s Discussion and Analysis filed on SEDAR.

Three Months Ended June 30, 2011
(thousands of dollars, except per unit amounts and shipments, unaudited) Q2 2011 Q1 2011 Q2 2010
Sales 89,906 85,488 60,544
EBITDA1 4,601 951 8,334
Operating (loss) income 619 (3,100 ) 2,374
Net (loss) income 2,907 (5,727 ) 41,816
Adjusted net (loss) income (982 ) (5,605 ) 4,514
Paper shipments (tonnes) 14,670 15,468 16,324
Pulp shipments (tonnes) 54,384 56,361 18,848
1See net income to EBITDA reconciliation.
Net income to EBITDA reconciliation:
(thousands of dollars, unaudited) Q2 2011 Q1 2011 Q2 2010
Net income 2,907 $(5,727 ) 41,816
Income tax 740 1,536 1,013
Foreign exchange (gain) loss (3,889 ) 122 1,134
Net interest expense (income) 861 969 215
Fair value gain on acquisition - - (41,804 )
Start-up costs - - 3,368
Amortization 3,394 3,508 1,921
Stock based compensation 588 543 671
EBITDA 4,601 951 8,334

The Company

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business includes NBHK produced at the Fortress Specialty Cellulose Mill currently in process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

Conference Call

A conference call to discuss the financial results for the second quarter 2011 will be held on August 9, 2011 at 9:30 a.m. (PST). To attend the conference call, please dial one of the following numbers:

North America: 1-877-353-9586

International: 1-403-532-8075

Participant pass code: 98030#

Conference reference No.: 604941

A replay of the conference call will be available for 7 days. To access the replay, listeners may dial 1-877-353-9587 from North America or 403-699-1055 International. The conference reference number is 604941 followed by the number sign and the participant pass code to access the replay is 98030 followed by the number sign.

Forward-Looking Statements

Some information in this news release contains forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. The reader is cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, those relating to damage to our reputation, competition, maintaining our market position, marketability and price of our products, technology and protection of our intellectual property, dependence on our major customers, fluctuations in the price and supply of raw materials, fluctuations in foreign exchange and other risk factors detailed in our filings with Canadian securities regulatory authorities. These risks, as well as others, could cause actual results and events to vary significantly. Fortress Paper Ltd. does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking statements.

 

Contact Information

Fortress Paper Ltd.

Mr. Chadwick Wasilenkoff / Chief Executive Officer

604-904-2328

info@fortresspaper.com www.fortresspaper.com

 

SOURCE:

Marketwire

Fortress Paper Ltd.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Fortress Paper to Release First Quarter 2011 Earnings

Posted: Tuesday, May 31st, 2011

VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 31, 2011) -

Fortress Paper Ltd. (TSX:FTP) (“Fortress Paper” or the “Corporation”) announced today that it intends to release its first quarter financial results for the period ended March 31st, 2011 after the close of the market on Tuesday, June 14th, 2011. In connection with the release of its results, Fortress Paper will host a conference call Wednesday, June 15th, 2011 at 9:30 a.m. (PST) to discuss the financial results and the Corporation’s operations. Mr. Chadwick Wasilenkoff, Chief Executive Officer, Alfonso Ciotola, President, Erich Sulser, Chief Operating Officer, Kurt Loewen, Chief Financial Officer and Peter Vinall, President and Chief Executive Officer of Fortress Specialty Cellulose Inc. will host the call.

To participate in the conference call, please dial one of the following numbers:

Dial In Numbers: 604-681-0262 Vancouver
403-532-8075 Calgary or International
780-429-7423 Edmonton
647-837-0597 Toronto
613-683-0932 Ottawa
514-788-7663 Montreal
Toll Free Dial In Number: 1-877-353-9586 from Canada and USA
Participant Pass Code: 98030#
Conference Reference Number: 545090

 

A replay of the conference call will be available for 7 days. To access the replay, listeners may dial 1-877-353-9587 from Canada & the USA or dial 403-699-1055 from local Calgary or International. The conference reference number is 545090 # and the participant pass code to access the replay is 98030 #.

About Fortress Paper Ltd.

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress Paper operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper‘s security papers include banknote, high security, passport and visa papers and its specialty papers include non-woven wallpaper base products. Fortress Paper‘s pulp business includes NBHK produced at the Fortress Specialty Cellulose Mill with plans to convert this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

 

Sources:

Marketwire

Fortress Paper Ltd.