TimberWest Reports Third Consecutive Quarter of Positive Operating Results Driven by Asia and Pays Deferred Distribution to Unitholders

VANCOUVER, Nov. 8 /PRNewswire-FirstCall/ - TimberWest Forest Corp. announced positive EBITDA of $2.4 million for the third quarter of 2010. This compares to an EBITDA loss of $0.5 million in Q3 2009 and brings the total year to date EBITDA to positive $15.5 million, a $21.7 million improvement over the same period last year. Distributable Cash was negative $4.7 million for the quarter and negative $3.6 million year to date 2010, a $20.9 million improvement over the distributable cash loss of $24.5 million recorded during the comparable period in 2009.

This is the third consecutive quarter of positive operating results, which the Company attributed to strong and growing demand from Asian log markets. China and Korea have emerged as major new growth markets for TimberWest over the past three years. Year to date, export sales revenue into these two countries has more than tripled over the equivalent prior year period. With China's economy still growing, we see a further tightening of global fibre supply and a resulting sustainable demand for our products from this region. Increased access to the China market through reduced port restrictions early in the third quarter helped improve volumes and margins.

The Company's CEO, Paul McElligott, noted that "we are pleased with the quarterly result as it occurred despite limited log production and very few real estate sales". Unusually hot, dry weather conditions during the quarter resulted in extended fire related shutdowns on the Company's private lands. This resulted in the quarterly harvest being only 65% of the Q2 2010 total. In addition, the summer proved to be very quiet in terms of real estate sales with only $500,000 in recorded revenues for the quarter. Despite these developments, and the continued slump in U.S. housing, it is encouraging to post positive operating results. McElligott was quick to point out that "This really highlights the importance of Asian log markets to our overall profitability".

On October 15, 2010, the Company paid the April 15, 2009 deferred distribution in additional Stapled Units to unitholders. As the original deferral periods are coming due, the Company will now make quarterly distributions to unitholders by issuing additional Stapled Units. 

Details on the Company's quarter are contained in the 2010 Third Quarter Interim Report, which can be obtained at www.timberwest.com.

About TimberWest

TimberWest Forest Corp. is uniquely positioned as western Canada's largest private timber and land management company. The Company owns in fee simple approximately 320,000 hectares or 791,000 acres of private land and is in the business of selling timber products and real estate.

Quarterly Conference Call

TimberWest will hold a conference call at 9:00am (Pacific) on Monday, November 8, 2010, to discuss results of the third quarter. To access the conference call, listeners should dial 1-800-908-8402. For those unable to participate in the live call, a recording of the call will be available until November 22, 2010, and can be accessed at 1-800-558-5253 using code 21484366. The conference call will also be broadcast live over the internet via TimberWest's website home page at http://www.timberwest.com. The webcast will be archived and available for an additional 90 days.

Stapled Units of TimberWest Forest Corp. are traded on the Toronto Stock Exchange under the symbol: TWF.UN

SOURCE TimberWest Forest Corp.