Financial Strength
“Strong financial position providing a solid foundation for growth”
The refinancing of our long-term debt combined with various actions undertaken during the past two years have provided Fibrek with the required financial flexibility to ensure future growth and reduce the impact of any negative fluctuations in future cash flows.
- Conversion from an income trust fund into a corporation, Fibrek, leading to the introduction of our new vision and shared values, which will help shape our future success;
- Refinancing of $193M to maximize financial flexibility with a reduced debt and lower interest expenses, bringing our debt to total capitalization ratio down to among the lowest in the industry;
- Rigorous cash management in order to optimize the use of our liquidities;
- Focus on reducing controllable costs with actions such as a cost reduction program implemented in 2009 and the negotiation for a reduction in wood chip prices resulting in annual savings of approximately $10M;
- Implementation of an Operational Excellence approach to improve efficiency through a lean manufacturing culture.
Fibrek is well positioned to benefit from a recovering economy with a reduced debt, superior liquidity and the ability to seize profitable growth opportunities as they arise. Our strong financial position and overall focus on improving margins are the means to the ultimate objective of generating and maintaining shareholder value.