Ainsworth Lumber reports improved first-quarter adjusted EBITDA

By Jennifer Lanning Drey

Portland, Ore., May 19 - Ainsworth Lumber Co. Ltd.'s first-quarter adjusted EBITDA improved to negative C$2.3 million, compared to negative C$18.0 million in the comparable period of 2008 as a result of higher realized prices and a decline in cost of goods sold, Rob Felwecki, the company's director of finance, said Tuesday during its quarterly earnings call.

The weaker Canadian dollar also positively impacted adjusted EBITDA by C$7.5 million.

Ainsworth had cash of C$156.4 million at March 31, compared to cash of C$192.6 million at Dec. 31.

Cash used by operating activities during the first quarter was C$35.2 million, which included working capital build related to logging activities that take place during the winter months, he said.

Ainsworth remains focused on cost reduction, operating efficiency and liquidity preservation, Felwecki said.

The company believes it has sufficient working capital to fund any shortfall from operations, interest payments, debt repayments and essential capital expenditures, according to its earnings release.

Ainsworth posted a C$34.8 million net loss from continuing operations on sales of C$81.0 million for the first quarter. The figures compared to a net loss from continuing operations of C$77.7 million on sales of C$73.8 million for the same period in 2008.

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

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