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Gold/Mining/Energy : Repap (RPAPF) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Latchum who wrote (209)	7/29/1998 11:54:00 AM
From: Yo Yo	Read Replies (1) \| Respond to of 485

Just for comparison, here is what's happening at what I assume is a competitor of Repap. Interesting that they are running at 98% of capacity and still losing money. How bad does it get in a downturn? Stock price down about 60% today. Ouch! Very similar company. Coated and other paper, highly leveraged. Read on.... OAKLAND, Calif.--(BUSINESS WIRE)--July 29, 1998--Crown Vantage Inc. (NASDAQ:CVAN) today reported a net loss of $12.3 million or $1.32 per share, compared to a net loss of $14.2 million or $1.55 per share in the first quarter of 1998 and a net loss of $10.9 million or $1.22 per share in the second quarter of 1997. The 1998 second quarter results include a charge of $2.5 million, with a per-share impact of 17 cents for a 5-percent work force reduction announced in May, which will reduce costs by an estimated $8 million per year. The operating loss of $3.0 million in the second quarter of 1998 compared favorably to an operating loss of $5.8 million in the prior quarter versus a loss of $1.5 million in the 1997 second quarter. Net sales for the 1998 second quarter were $215.4 million, compared to $221.8 million in the first quarter and $224.9 million in the 1997 second quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) for this year's second quarter were $18.6 million, compared to $15.7 million in the first quarter and $20.4 million in the year-ago second quarter. The failure of two transformers owned by the company's energy provider at the St. Francisville, La., pulp and paper mill reduced operating profit by an estimated $1.6 million for the quarter through a combination of lost production and equipment repair. "With the exception of these uncontrollable events, the mill's coated groundwood production neared 98 percent of capacity levels, contributing to the second quarter's improved performance," said Ernest S. Leopold, chairman and chief executive officer. "Another favorable development is the start-up this month of a second coater on No. 4 paper machine at the Port Huron, Michigan, mill, which provides the capability to expand market penetration for higher value-added coated specialty papers used for labels and other premium packaging applications," Leopold said. "Economical manufacturing enhancements such as this project continue the upgrade of our product mix across the mill system and improve our competitive position." A net loss of $26.5 million or $2.86 per share for the first six months of 1998 compared to a net loss of $20.5 million or $2.33 per share for the first half of 1997. Net sales for the first six months of 1998 were $437.2 million compared to $453.6 million in the comparable period of 1997. For the first six months of 1998, EBITDA totaled $34.3 million compared to $41.8 million in the first six months of 1997. The company announced separately today that it continues to explore various alternatives to fund the repurchase of the company's pay-in-kind notes held by Fort James under the terms of the previously announced option, although it is no longer actively exploring doing so by means of the separation of its specialty paper businesses from its St. Francisville pulp and paper mill, with the possibility of divestiture. Crown Vantage, headquartered in Oakland, California, manufactures papers for printing, publishing and specialty packaging and converting applications at its 10 mills in the United States and Scotland. Crown Vantage information can be found on the Internet at www.crownvantage.com.