RusForest Releases Year-End Report 2014

| Source: RusForest AB RusForest AB

Stockholm, 2015-03-31 08:05 CEST (GLOBE NEWSWIRE) -- RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, today released its year-end report 2014.

Fourth Quarter Highlights                                                         

  • Sawlogs from continuing operations: Harvested 105,038 m3 of sawlogs in Magistralny in Q4 2014 (Q4 2013: 94,220 m3).
     
  • Subcontracting: Harvested 106,379 m3 of sawlogs in Ust-Ilimsk forest lease areas in Q4 2014 (Q4 2013: 68,174 m3).
     
  • Sawnwood from continuing operations: Produced 21,368 m3 of sawnwood in Magistralny in Q4 2014 (Q4 2013: 20,805 m3).
     
  • Revenue from continuing operations: Generated revenue of USD 7.1 million in Q4 2014 (Q4 2013: USD 8.1 million).
     
  • Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 1.6 million in Q4 2014 (Q4 2013: USD 0.5 million).
     
  • Profit from continuing operations: Recorded a profit of USD 3.1 million in Q4 2014 (Q4 2013: loss of USD 5.9 million).
     
  • Loss for the period: Recorded a net loss of USD 5.0 million in Q4 2014 (Q4 2013: net loss of USD 54.5 million).
     
  • Cash and Working Capital: Closed the fourth quarter of 2014 with a cash balance of USD 10.0 million (Q4 2013: USD 3.6 million) and positive working capital of USD 7.2 million (Q4 2013: USD 10.1 million).

2014 Full-Year Highlights

  • Sawlogs from continuing operations: Harvested 278,896 m3 of sawlogs in Magistralny in 2014 (2013: 312,228 m3).
     
  • Subcontracting: Harvested 320,210 m3 of sawlogs in Ust-Ilimsk forest lease areas in 2014 (2013: 222,414 m3).
     
  • Sawnwood from continuing operations: Produced 78,826 m3 of sawnwood in Magistralny in 2014 (2013: 70,924 m3).
     
  • Revenue from continuing operations: Generated revenue of USD 27.4 million in 2014 (2013: USD 34.0 million).
     
  • Adjusted EBITDA from continuing operations: Reported EBITDA of USD 1.5 million in 2014 (2013: USD -4.3 million).
     
  • Loss from continuing operations: Recorded a loss of USD 2.9 million in 2014 (2013: profit of USD 22.8 million due to USD 41.4 million gain from bond restructuring).
     
  • Loss for the period: Recorded a net loss of USD 14.5 million in 2014 (2013: net loss of USD 44.5 million).

Note that the Boguchany and Arkhangelsk business segments were divested in 2014 and are included in the financial results as discontinued operations.

Management Comments

Anton Bogdanov, CEO of RusForest Management Company, commented: “2014 presented us with a number of challenges ranging from the global economic environment to the uncertain political situation, and some difficult strategic decisions were required. Despite the challenges, RusForest continued to execute on the structural and operational improvements that we initiated in the beginning of 2013 and that resulted in 2014 being the first year of positive EBITDA in the company’s history. We now have a positive cash flow platform with a cash balance of USD 10 million and no interest-bearing debt at year-end.”

Conference Call

Management will host a telephone conference today at 11:00 a.m. CET in order to review the fourth quarter and full-year 2014 results. To participate in the conference call, please dial the following numbers at least five minutes before the scheduled event:

From Sweden: +46 (0) 8 50556474

From United Kingdom: +44 20 33645374

From North America: +1 (855) 7532230

To take part in the interactive presentation, please use webcast link: http://edge.media-server.com/m/p/sx8pjtf7 or visit RusForest’s website at www.rusforest.com and click on the link for the year-end report 2014 telephone conference. A presentation will also be available for download from the website.

A replay of the telephone conference will be available on RusForest’s website approximately one hour after the completion of the event.                                                                             

About RusForest AB

RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products. RusForest is listed on NASDAQ OMX Stockholm First North (ticker “RUSF”).

RusForest AB's Certified Adviser on First North is Pareto Securities AB.

For additional information, please visit the Company’s website at www.rusforest.com or contact:

Gustav Wetterling, Group CFO, telephone: +46 8 771 85 00

 

Attachments

rusf_year end report 2014.pdf