REPAP ENTERPRISES INC. REPORTS 1999 THIRD QUARTER RESULTS
STAMFORD, CT, Oct. 21 /CNW-PRN/ - Repap Enterprises Inc. today reported
results for the third quarter ended September 30, 1999. Repap recorded a loss
for the quarter of $13.8 million ($0.02 per share) compared with a net loss of
$12.2 million ($0.02 per share) in the third quarter of 1998.
Revenues from operations for the third quarter of 1999 were $160.4
million, down $12.3 million or 7% from revenues of $172.7 million in the third
quarter of 1998. Revenues from coated paper were $139.8 million, down $16.5
million from the third quarter of 1998, reflecting mainly the impact of an 11%
reduction in average coated paper prices due to weaker paper markets. Pulp
revenues for the third quarter of 1999 were $15.9 million, up $4.9 million
from the third quarter of 1998, reflecting mainly the impact of increased
shipments.
Repap's operating profit, before depreciation and amortization, and
excluding non-cash currency adjustments, (''EBITDA'') was $33.1 million for
the third quarter compared to an EBITDA of $43.4 million in the third quarter
of 1998 and to an EBITDA of $27.7 million in the second quarter of 1999.
Repap's operating subsidiary, Repap New Brunswick Inc. reported an EBITDA
of $32.3 million for the third quarter of 1999 compared to $45.0 million in
the third quarter of 1998, reflecting significantly lower prices and a
stronger Canadian dollar, offset partially by higher shipments and lower
costs. The third quarter EBITDA of $32.3 million increased by $5.1 million
over second quarter 1999 EBITDA of $27.2 million. The second quarter was
negatively impacted by a six-day labor strike.
Repap's loss for the nine months ended September 30, 1999 was $36.6
million ($0.05 per share) compared to a loss of $44.0 million ($0.06 per
share) in the corresponding period of 1998. Revenues for the nine months of
1999 totaled $465.5 million, down $39.3 million from the same period of 1998
revenues of $504.8 million, reflecting lower pricing in all product lines.
EBITDA for the nine months ended September 30, 1999 was $99.8 million down
from $133.4 million reported in the corresponding period of 1998, reflecting
lower selling prices, offset partially by reduced administrative and
manufacturing expenses and increased shipments of pulp and paper.
Mr. Stephen C. Larson, President and CEO, had the following comments:
''During the third quarter, market conditions for both coated paper and market
pulp improved with good shipments and extended backlogs. These positive trends
are continuing into the fourth quarter where we will realize a coated paper
price increase announced for October, the first such increase after almost a
year and a half of declining prices.''
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