Comment by Alphaseeker1984on Nov 05, 2018 7:26pm
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Post# 28927733
RE:RE:RE:Good results -- $99M in EBITDA
RE:RE:RE:Good results -- $99M in EBITDALooks like a just a few people wanted to sell after this report...4,000 shares sold and it is down 15%!!
Looking closer at the quarterly numbers I have a few comments:
1) SC total sales look like they are down about 13,000 tons from the same period last year. Which could be just a timing issue as inventory seems to be up. This could have a 3-4 million impact on EBITDA. Let's see on the CC tomorrow what they say about that. Normally the annual volumes are credible, so they will most likely pick this up in Q4
2) Lumber volumes were down due to some downtime associated with the upgrades they are doing. Not a big deal...they have to do this if they are ever going to get the sawmills upgraded. If the equipment arrived then they would want to get it installed ASAP...not a big issue as it will be accretive in 2019.
3) Newsprint volumes were down as well. 11,000 tons less than Q2. At $633 per ton this could be a +/- 2 million hit to EBITDA.
With 6 million of additonal EBITDA from SC and newsprint they would have easily surpassed estimates. Again the corporate costs are the big mystery...21 million (adjusted) vs. 19 million on a combined basis last year. Where are the synergies??? They seem to be taking them and paying themselves as opposed to delivering overall cost reductions to the bottom line.