TimberWest posts strongest quarterly results in 3 years

TimberWest Forest Corp. posted its strongest normalized quarterly results in three years generating positive EBITDA of $9.7 million and positive distributable cash of $4.0 million in Q2, 2010. This compares to an EBITDA loss of $3.7 million and a distributable cash loss of $5.4 million in Q2, 2009.

TimberWest attributed its improved performance to an increase in sales and prices both domestically and abroad during the quarter. Strong Asian sales, lower unit costs of production, achieved primarily from higher harvest volumes, and cost restructuring initiatives implemented over the past two years, contributed to improved performance. Stronger real estate sales proceeds quarter over quarter also contributed to the turnaround in results.

TimberWest's CEO, Paul McElligott, noted that "Japan remains a strong timber market for the Company and more volume was shipped to China and Korea in the first few months of 2010 than all 12 months of 2009. We are pleased with our market diversification program, which has proven to be both timely and important while North American markets recover." The Company also noted its debt to total capitalization ratio and liquidity improved during the quarter with the May 18, 2010 closing of a $60.0 million public offering of Stapled Units, the proceeds of which were applied to reduce the Company's operating credit facility.

Full details of TimberWest's quarternly results can be seen at www.timberwest.com.