Montreal, Quebec, Canada, 18 June 2010
– Consistent with Tembec’s previously announced plans to enhance its liquidity and improve its balance sheet, the company is evaluating current market conditions, and in connection therewith, will have discussions with certain investors. Such discussions may lead to questions regarding the company’s performance in the current fiscal quarter. As such, Tembec today issued a forecast for its third quarter ending on 26 June 2010.
The company expects that EBITDA will be in the range of CAD 47 million to CAD 53 million. This compares with EBITDA of CAD 32 million in the most recent quarter ended 27 March 2010. Following the recent sale of two pulp mills, liquidity is expected to be approximately CAD 250 million, up from CAD 138 million at the end of the March 2010 quarter. Liquidity consists of cash and undrawn revolving lines of credit.
Tembec defines EBITDA as earnings before nonrecurring items, interest, income taxes, depreciation, amortization, and other nonoperating expenses and revenues. The company considers EBITDA to be a useful indicator of the financial performance of the company, the various business segments, and the individual business units. EBITDA is not a measure of performance under generally accepted accounting principles (GAAP), and it should not be considered as an alternative to operating earnings, net income, cash flow from operating activities, or any other measure of performance derived in accordance with GAAP. As there is no generally accepted method of calculating EBITDA, it may not be directly comparable to similar measures reported by other companies.
Tembec is a large, diversified and integrated forest products company and a global leader in sustainable forest management practices. The company’s principal operations are located in Canada and France. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available at www.tembec.com