TORONTO, October 12, 2019 – Shares of Norbord Inc. (NYSE: OSB) gained 0.63% to $22.31. The stock grabbed the investor’s attention and traded 104.363K shares as compared to its average daily volume of 153.30K shares. The stock’s institutional ownership stands at 87.50%.
Norbord Inc. (TSX and NYSE: OSB) reported Adjusted EBITDA of $42.0M in the first quarter of 2019 compared to $70.0M in the fourth quarter of 2018 and $170.0M in the first quarter of 2018. The decrease versus both comparative periods was primarily due to lower North American oriented strand board (OSB) prices. North American operations generated Adjusted EBITDA of $23.0M compared to $50.0M in the prior quarter and $156.0M in the same quarter last year. European operations delivered Adjusted EBITDA of $21.0M compared to $24.0M in the prior quarter and $18.0M in the same quarter last year.
Norbord recorded an Adjusted loss of $2.0M or $0.02 per share (basic and diluted) in the first quarter of 2019 compared to Adjusted earnings of $26.0M or $0.30 per share (basic and diluted) in the fourth quarter of 2018 and $96.0M or $1.10 per diluted share ( $1.11 per basic share) in the first quarter of 2018.
Norbord’s 2019 capital expenditure budget is approximately $150.0M for projects focused on reducing manufacturing costs across the mills, as well as a portion of the Chambord, Quebec mill rebuild and Inverness, Scotland phase 2 projects. It also includes investments to support the Company’s strategy to increase the production of specialty products for industrial applications and exports.
Operating working capital was $183.0M at quarter-end compared to $218.0M at the end of the same quarter last year and $88.0M at year-end 2018. The year-over-year decrease is primarily due to lower North American OSB prices as well as timing of payments and new lease liabilities recognized upon transition to the new lease accounting standard. The quarter-over-quarter increase is primarily due to the annual seasonal build of log inventory in the northern mills in North America, the payment of annual incentive payouts, as well as the timing of payments. Working capital continues to be managed at minimal levels across the Company.
At quarter-end, Norbord had unutilized available liquidity of $239.0M, consisting of $2.0M in cash and $237.0M in revolving bank lines. The Company’s tangible net worth was $1,107.0M and net debt to total capitalization on a book basis was 34%, both well within bank covenants.
OSB has a market value of $1.82B while its EPS was booked as $1.06 in the last 12 months. The stock has 81.70M shares outstanding. Analyst recommendation for this stock stands at 3.00.