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Reduced Forest Valuation Impact Evergreen Full Year Result Evergreen Forests Limited announced a full year after tax loss of $12.026m (2003 loss $36.484m) on turnover of $40.247m (2003 $40.100m). Forest revaluation was negative $17.298 (2003 $27.787), which includes a modest positive valuation movement of $2.348m in the second half year to 30th June, 2004. Chairman, Peter Wilson, said the result reflected the reality of reduced NZ$ receipts for logs with the export market showing poor returns due in part to continuing high shipping costs and the strength of NZ currency. Mr Wilson also noted that there had been significant transactions of forest- land over the last year and more in prospect as the industry ownership and cost base adjusted to changing market conditions. With the company organisational restructure completed and non- core asset sales under consideration, Mr Wilson said the Board was actively addressing future options for the company. 27 August 2004 - Preliminary Full Year Report Announcement (pdf 87kb)) Evergreen Forests to Restructure As outlined in its interim report, Evergreen Forests Limited is to focus on management of its existing forests rather than following a strategy of growth. This will result in a reduction in administrative and operational costs. Consideration will also be given to sale of non-core forests. Chairman, Peter Wilson stated today that pursuant to the announced strategy, three senior management positions would be reviewed with a new General Manager position created to undertake a revised role. It was expected this process would be concluded by June 30th. Mr Wilson said that Mr Mark Bogle, CEO since 1995 had elected to leave the Company at the conclusion of the transition. Mr Wilson also announced that the Board would be reduced to four members with the retirement of Bill Falconer and Jim McLay effective 16th April. Mr Wilson said that while the considerable skills provided by both members would be missed, a smaller Board would meet the needs of the Company. Evergreen Forests Limited has moved from its Auckland business district offices to premises at Mt Wellington with associated costs savings. These and other measures addressing the outcomes of the review process were referred to in the interim report to shareholders. Mr Wilson said that the Board believed the steps taken would reposition the company to be able to deliver maximum value to shareholders Independent Forest Evaluation Evergreen Forests Limited announced today the independent value of its forest estate as at 31 December 2003 will be $118.7m. The company also announced the sale of a non-core asset (Otau forest) for $4.75m. The proceeds from the sale will be used to repay debt. The 31 December 2003 forest value of $118.7m compares to $138.2m (excluding Otau) as at 30 June 2003. The company foreshadowed a possible fall in forest value at its October Annual Meeting. Evergreen's Chairman, Mr Peter Wilson, said that the Board's strategic review, announced in October, was underway and that an external consultant had been retained to assist with the review process. 23 September 2003 Evergreen Forests Limited confirms that it is no longer a participant in the Kiwi Forestry Group consortium bid for the assets of Fletcher Forests. Evergreen CEO Mr Mark Bogle said that it was disappointing that Fletcher shareholders would no longer have the opportunity to retain an interest in the assets being sold through a shareholding in Evergreen. However, the Evergreen non-cash component had become a complicating factor in the bid and Evergreen had agreed to withdraw from its involvement with the consortium. Evergreen Confirms Involvment in Fletcher Sale Process Evergreen Forests Limited refers to the announcement made last night by Fletcher Challenge Forests Limited concerning the offer by Kiwi Forest Group Limited for the FCF Forest Estate. As required by NZX Listing Rule 10.1, Evergreen confirms that it is a member of the Kiwi Forest Group Consortium but its participation is subject to Board and shareholder approval. At this time, the terms of any such transaction have yet to be concluded, and remain under negotiation. Evergreen does not propose to make any further announcement until negotiations have concluded and its required board approvals have been obtained Evergreen Announces Year End Result Evergreen Forests Limited announced today an increased operating profit of $7.074 million (2002: $6.968 million) on turnover of $36.6 million (2002: $21.8 million). Chief Executive Mark Bogle said that the market downturn during the year reduced margins on the harvest volume of 295,450m3 (2002: 200,872m3). As foreshadowed in the market release on 30th April this year, there has been a reduction in forest value to $141.9m as at 30th June 2003. The company also moved to valuation accounting for its forest assets with affect from 30 June 2003 and recognised deferred tax for the first time. Non-cash adjustments totalled $43.6 million giving rise to a net loss of $36.5 million for the 12 months ended 30th June 2003 (2002: net profit $6.7m). This includes a deferred tax provision of $15.1 million. Mr. Bogle said that the fall in forest value reflected the rapid appreciation of the NZ dollar, higher shipping rates and flat US dollar log prices. He said that the company was currently harvesting from areas least affected by the export market downturn. Evergreen's net asset value on a fully diluted basis, before deferred tax, is $0.66 per share (2002: $0.79). After allowing for deferred tax the fully diluted NAV is $0.59 (2002: N/A). Evergreen's Chairman, Mr Peter Wilson, said that the company was pleased to announce two new director appointees: Mr. Robert A. Kriscunas and Mr. Paul L. Fowler. The new directors were nominated by the major shareholder in Evergreen, Ohio Public Employees Retirement System (OPERS), previously known as Xylem Investments. The company also announced the cancellation of the 311,607 shares purchased under the share buyback scheme over the past year. Evergreen Advises Reduction In Year End Forest Value Evergreen Forests Limited announced today that its independent forest valuer, Jaakko Poyry Consulting (Asia-Pacific) Limited, had given a preliminary indication that the company's forest value for the year-end 30 June 2003 would be in the range of $141m to $149m. The independent forest value at 30 June 2002 was $162.4m. Evergreen's CEO, Mr Mark Bogle, said that operating performance for this financial year would not be affected by a writedown in the forest asset value. He confirmed that, although the company had moderated its harvest volumes in the current six month period, Evergreen was still expecting an operating result similar to last year ($6.9m), before non-cash adjustments. While the reduction in the company's forest value was disappointing, Mr Bogle said it reflected three current unfavourable trends for exporters: low log prices, high shipping costs and a higher NZ dollar. He also noted that the company, in its interim report for the period ended 31 December 2002, had foreshadowed a value reduction if these trends continued. Mr Bogle said that the company was reviewing its production plans and that, to preserve shareholder value, harvest levels may be further reduced until margins improved. He said that Evergreen's ability to vary its production in response to market conditions is a feature of its focus on forest asset ownership, removing any pressure to maintain harvest levels to supply company-owned manufacturing facilities.
Evergreen Announces Refinancing Evergreen Forests Limited announced today that it had obtained a ten-year, US$10 million loan from John Hancock Life Insurance Company. John Hancock is a major world-wide forestry lender located in Boston, Massachusetts, USA. Evergreen's Chief Executive Mr Mark Bogle said that the loan proceeds are being used to repay vendor finance provided in connection with past forest acquisitions. Mr Bogle said the ten year term provides long-term finance that is unavailable from local lending institutions. He said that the loan carries a fixed interest rate of 6.88% and that the company had hedged the exchange rate for the loan in January at 54.20 cents. The company is also pleased to note there has been continuing conversion of its 2009 zero coupon convertible notes into ordinary shares. In February 2003 2.3 million notes converted into 5 million shares. Mr Bogle said that early conversion of notes further strengthens the balance sheet and reduces future value dilution. Evergreen Announces Steady Profit Evergreen Forests Limited announced today an operating profit of $4.270 million for the six months ended December 2002 (December 2001: $3.540 million). Chief Executive Mark Bogle said that increased production during this period and satisfactory market conditions (particularly during the first quarter) contributed to this improved result. Current trading conditions are less favourable with the combination of a firmer New Zealand dollar and lower US dollar log prices resulting in softening NZ dollar returns. Mr Bogle said that while this may lower production and lead to a lower profit for the second half of the year, the company still expects the full year operating profit to compare favourably with the year ended 30th June 2002. Mr Bogle stated that forward cover was in place for expected export receipts at an average of US$0.4425 for the next 6 months providing some protection to the company's operating profit. However, he also said that should pricing and currency trends continue to be unfavourable it would impact negatively on forest values. Evergreen's forest estate is independently valued each year at 30 June and any adjustments necessary will be made at this time. The Forest Stewardship Council audit has been completed and the company expects FSC certification confirming its sustainable forest management practices will be received for its North Island forests prior to June 30 2003. Evergreen also advised that it has been informed that UBS Timber Investors has been appointed as the new manager of Xylem Fund I. Xylem Fund I holds 43.33% of Evergreen ordinary shares. The company understands that over the next three months UBS is to undertake a review of the Fund's investment in Evergreen. UBS Timber Investors is a division of UBS Global Asset Management New York, Inc. part of UBS AG. Evergreen Announces Increased Profit and Valuation Evergreen Forests Limited announced today consolidated net profit of $6.746m for the 12 months ended 30th June 2002 (2001: $5.044m). The operating profit before abnormals was also higher at $6.968m (2001: $6.508m) on a harvest volume of 211,204t (2001: 171,620t). Chief Executive Mark Bogle said that the profit increase was a positive result in a year in which volatile international events had affected prices and demand in international markets. Pruned log prices in particular had been affected and Mr. Bogle said that Evergreen had responded by reducing its harvest of pruned stands, instead harvesting a greater proportion of its lower value stands than scheduled. Mr. Bogle said that current trading conditions were favourable, particularly in Asia, evidenced by higher export volumes, improved pricing and the emergence of China as an exciting future market for New Zealand plantation grown products. US prices had also recovered and remain firm. The company also announced the cancellation of the 678,470 shares purchased under the share buyback scheme over the past year. In addition, Chairman Peter Wilson announced the board of directors had authorised a continuation of the share buyback programme and that it will also allow for the purchase of the convertible notes. Further information will be mailed to shareholders shortly. Evergreen is a public company listed on the New Zealand Stock Exchange. The company owns or has cutting rights over 21,000 stocked hectares (52,000 acres) planted in fast-growing radiata pine. Its forest properties are principally located in Northland, South Auckland, the East Coast and the West Coast of the South Island. For further information contact Mr Mark Bogle , email: The company's web site is located at: www.evergreen.co.nz For information on the New Zealand stockmarket and the company's share price on the NZSE, please go to: www.nzse.co.nz 1. Independent Forestry Valuers and Consultants 20 February 2002 Evergreen Forests Limited announced today an operating profit of $3.540 million for the six months ended December 2001 (December 2000: $3.532 million). Chief Executive Mark Bogle said that this was a good result given log market volatility and the impact of wet weather conditions on the companys harvest levels in the past four months. Trading conditions were favourable, particularly in Asia, evidenced by higher export volumes, improved pricing and the emergence of China and India as exciting future markets for New Zealand plantation grown products. A lessening of uncertainty following the tumultuous period in the US has also seen some confidence returning to international markets. Mr Bogle said that given current market conditions, the company is hoping to record a similar operating profit during the second half of the financial year. The company remains on track to achieve Forest Stewardship Council certification confirming its sustainable forest management practices in the next financial year. Evergreens Chairman, Mr Peter Wilson said that a little over twenty two percent of the shares traded on-market have been purchased by Evergreen since the commencement of the companys share buyback programme in August 2001. The company now holds 632,207 shares as treasury stock. The buyback programme remains in place. Wednesday, 22 August 2001 Evergreen Forests Limited has reported a consolidated net profit of $5.044m for the 12 months ended 30th June 2001 (2000: $5.152m). The companys independently assessed year-end forest value increased to $157.4m (2000: $148.6m). Net asset value per share was $0.85 at year-end (2000: $0.86). Chief Executive Mark Bogle said that the profit and valuation increase represented a very satisfactory result in what has been a difficult year for the sector. Evergreens operating surplus for the year increased to $6.508m (2000: $5.159m) on a harvest volume of 163,039m3 (2000: 141,458m3). The net profit of $5.044m incorporates a $1.465m write down in the Companys investment in the Nuhaka Forestry Fund. Mr Bogle said that prices for high-quality pruned logs had been firm throughout the year and that this had been a key factor in the companys ability to deliver an increased operating surplus. Strength in the pruned log market had also helped to underpin the year-end forest valuation. Evergreens Chairman Peter Wilson announced that the company would not be paying a dividend for year ended June 30 2001 but it intends, during the next twelve months, to conduct an on market buy back of up to 2,814,687 (2%) of its ordinary shares. Mr Wilson said that the Board had determined that an on market share buy back programme would enhance shareholder value given the difference between the companys share price and underlying asset value. Evergreen expects to continue its growth strategy as opportunities become available.
The value of Evergreens forest estate, as at 30 June 2001, has been independently appraised by Jaakko Poyry at $157.4 million. Evergreens Chief Executive, Mr Mark Bogle, said that the new value represented an increase of $8.9 million over the previous year and was 3.5% above the expected year-end (30 June 2001) book value of the Companys forests. The net stocked area increased from 21,007 hectares to 21,201 hectares over this 12 month period. The majority of Evergreens estate has been intensively managed under a clearwood regime to produce high quality pruned logs. There continues to be strong demand for pruned logs and this has underpinned the latest valuation said Mr Bogle. Evergreen is a public company listed on the New Zealand Stock Exchange and the Australian Stock Exchange. The company owns or has cutting rights over 21,000 stocked hectares (52,000 acres) planted in fast-growing radiata pine. Its forest properties are principally located in Northland, South Auckland, the East Coast and the West Coast of the South Island. Friday, 29th June 2001 Evergreen Forests announced today that it will raise $4.88 million through a placement of 9.3 million shares to Danish investors. The placement will be to two existing pension fund shareholders at 52.5 cents per share, a premium of 5% to the current market price. Funds raised will be used to finance a pro rata offer to buy back 4.275 million of the Companys 28.5 million ten-year convertible notes. The offer to noteholders will be priced at $1.1716, being the face value of the notes in July. The price is a 7% premium to the current market price. Noteholders will be able to offer more than their pro rata entitlement, which the Company will scale back in the event of excess acceptances. Evergreens Chief Executive Mark Bogle said that this arrangement would strengthen the Companys balance sheet by reducing debt and lowering interest costs. This would enable the Company to gain additional flexibility in its harvest levels during a cyclical low point in export prices. It also positively supports shareholder values in the long term. Mr Bogle stated that the combination of the share placement and note buy back would not be dilutive to existing shareholders as it reduces the eventual number of shares that will be issued to convertible note holders. The convertible notes (including the compound interest) convert to ordinary shares at 55 cents per share. Mr Bogle advised that the offer will be mailed shortly and the Company will acquire the convertible notes within the next two months. Thursday, 22nd February 2001 Evergreen Lifts Half Year Profit to $3.5 Million Forestry investment company Evergreen Forests Limited has reported a profit of $3.5 million, an increase of $1.4 million over the same period last year. Evergreen’s Chief Executive, Mr Mark Bogle said that the company’s pure play structure had helped it to target markets that give the best returns, offsetting some of the price volatility in international markets. He said that the past 12 months had been challenging for log exporters. "After a positive start, with international markets continuing to recover from the Asian slump, and exchange rates running in New Zealand’s favour, prices stabilised mid year but have since softened. " "We’re expecting market conditions to remain flat over the 2001 calendar year which means company profitability would stabilise around present levels," says Mr Bogle. "Longer term, the company is in a good position to maintain profit growth. Harvest levels have increased over the past year and will continue to grow as a larger proportion of Evergreen’s forest holding reaches maturity." "On the business development side, the company is planning for further growth with associated economies of scale," says Mr Bogle. Friday, 25th August 2000 Evergreen Forests Limited has reported a strong lift in sales and a 67 percent higher full year operating profit, having increased its harvesting activities to take advantage of an improved market environment for the New Zealand forestry sector. The operating surplus was $5.152m for the twelve months ended 30 June 2000, compared with $3.091m for the corresponding period last year. Volume harvested of 141,458m3 significantly exceeded the volume recorded for the 1999 year (82,337m3). Shareholders’ equity increased to $104.433m (1999: $99.281m). The company’s net asset value per share based on its independent forest valuation was unchanged at $0.86. Evergreen’s Chief Executive Mr Mark Bogle said that prices for unpruned sawlogs had improved during the year and that the weaker New Zealand dollar had been beneficial. "Our earnings per share of 3.9c for the year just ended represents a substantial result, but it is far less than the potential earnings in future years based upon our maturing forests. The company now has considerable reserves of harvestable timber and further improvement in earnings can be anticipated next year given stable market conditions." "Our decision to moderate harvesting during the worst of the Asian downtown was the correct one," he said. The company’s purchase of 3,200 hectares of East Coast forests from Carter Holt Harvey for $21m late last year has considerably improved its ability to sustain harvest levels. "This purchase is consistent with our objective to acquire forest properties that have a complementary age class profile and are well located relative to the company’s existing properties," he said. In February 2000, Evergreen established a procurement and marketing subsidiary, Forestry New Zealand Limited. Evergreen’s sales of $19.606m for the year (1999: $8.811m) included $6.946m of third party trading revenue through Forestry New Zealand. Friday, 11th February 2000 Evergreen Forests Limited has reported a lift in sales and an operating profit of $2.107m for the six months ended 31 December 1999. The profit for the corresponding period a year before was $0.890m. Evergreen’s Chief Executive Mr Mark Bogle said export log prices are improving and the company should achieve continued profit growth. “Evergreen is well placed to take advantage of improvements in key Asian markets as they arise,” he said. “Evergreen has made significant progress in terms of its growth strategy over the past six months. Late last year we purchased 3,200 hectares near Gisborne from Carter Holt. The age class profile and location of these forests nicely complement our existing holdings.” Sales for the period were 152 percent higher at $5.836m, while shareholders’ equity increased to $101.388m. In a separate development, Evergreen announced that it is investing in a forestry marketing subsidiary, Forestry New Zealand Limited. “This will allow Evergreen to access new customers, broaden the range of markets we supply and strengthen our existing customer relationships. It will also provide us with supplementary income from log trading activities, and brings additional log marketing expertise to the company. This is a logical progression for Evergreen as we move into a sustained period of increased harvest activity,” Mr Bogle said. “The intention is both to maximise the value recovered from our existing estate and to create a secondary income stream trading third-party resource,” he added. Evergreen also announced the appointment of Mr Peter Berg and Mr Peter Hill as joint managing directors of Forestry New Zealand. Both will become shareholders in the new company. “They bring a wealth of industry experience and marketing expertise to the venture,” Mr Bogle said. Thursday, 7th October 1999 Evergreen To Buy Carter Holt Harvey Gisborne Properties For NZ$20.93 Million Evergreen Forests Limited announced today that it had acquired 3,200 stocked hectares of established forests for NZ$20.93 million from Carter Holt Harvey Limited. The forests, which were progressively planted between 1978 and 1996, are situated on two freehold properties near Gisborne. Evergreen Chief Executive, Mr Mark Bogle, said that the harvest profile of the forests nicely complements Evergreen's existing estate and will increase the company's East Coast holdings to 9,579 stocked hectares. Mr Bogle said that the purchase will be financed by a combination of debt (mainly vendor finance on normal commercial terms) and the placement of up to 6.1 million ten year zero coupon convertible notes at $1.06. The purchase is conditional upon the consent of the Overseas Investment Commission. Click Here to view Map of East Coast Forests Friday, 6th August 1999 Evergreen Records Strong Profit Turnaround Evergreen Forests Limited (Evergreen) has reported its first operating profit. Evergreen is poised for further expansion following the success of its $22.4m convertible note issue, which has placed the company in a strong financial position. For the year to 30 June 1999, the company recorded a net operating surplus after tax of $3.091m, a substantial turnaround from last year's $0.147m deficit. Evergreen's Chairman, Mr Peter Wilson, said the company had harvested a relatively small number of stands and has built up considerable reserves of mature timber by moderating its production in response to the downturn in Asian log markets. "Our production during 1998/1999 was small relative to projected future harvest volumes," he said. "The year's profit exceeded our expectations, with further improvement expected next year." "Shareholders could expect to reap the benefits from Evergreen's pure play strategy, when prices recover to their historical trend levels." Non-current liabilities fell from $47.0m to $30.1m, as most of the proceeds of Evergreen's zero coupon convertible note issue in March were used to reduce bank debt. Based on an independent valuation by international forestry consultants Jaakko Pöyry (Asia Pacific) Limited, the value of the company's forests has increased from $122.1m to $129.9m over the 12-month period. This equates to a net asset value per ordinary share increase from 83c to 86c. Chief Executive Mr Mark Bogle said that he was pleased with the company's progress and the results from its initial harvesting activities. "We are actively seeking opportunities to grow the company and its operations," he said. Mr Bogle is also positive regarding the industry outlook. "The outlook for the forestry sector has improved significantly with positive signs that demand from the Asian economies is returning sooner than expected." "There is increasing evidence that there will be strong global demand for plantation grown timber products," he said. Friday, 26th March 1999 Evergreen Forests Raises NZ$22.4M with Zero Coupon Convertible Note Issue Evergreen Forests Limited, the listed forestry owner, raised NZ$22.4 million through its zero coupon convertible note issue which closed on 19 March 1999, directors announced today. Chairman, Mr. Peter Wilson, said that while the company's major shareholder, Xylem Fund I, L.P. ("Xylem"), did not participate in the offer, directors were pleased that applications were received from 624 other rights holders for 8,002,840 convertible notes, representing 65.2% of the issue, excluding Xylem's pro-rata entitlement. The balance of the issue, or 14,377,058 convertible notes, has been taken up by an underwriting syndicate led by Hambrecht & Quist Guaranty Finance, LLC ("HQGF"). Senior company executives applied for 474,169 convertible notes under the executive share option plan. Mr. Donald M. Campbell, Chief Executive Officer of HQGF, said, "We are pleased with the amount of notes we are purchasing. We approached this underwriting as an investment opportunity, in which we would be acquiring an attractive security, the proceeds of which would significantly strengthen Evergreen." "We are particularly pleased at the large number of shareholders who exercised their rights, and the high percentage taken up by all shareholders other than Xylem," he said. In a further development, Mr. Wilson announced that Evergreen will seek to list its ordinary shares and convertible notes on the Australian Stock Exchange, in response to growing interest in the company from both Australian institutional and retail investors. "Company management visited potential investors earlier this month in Melbourne and Sydney, and feedback has been positive. Subject to the necessary approvals, we anticipate that listing will occur in April 1999," said Mr. Wilson. Evergreen would then join 21 other New Zealand companies which are dual-listed on both the Australian and the New Zealand Stock Exchanges. Wednesday, 3rd February 1999 Evergreen Forests Announces First Operating Profit And Innovative Capital Issue Evergreen Forests Limited, the listed forestry owner, is to raise $21.9 million through an innovative zero coupon convertible note issue, directors announced today. The issue of $21.9 million will be fully underwritten by Hambrecht and Quist Guaranty Finance (HQGF), a subsidiary of the large United States investment bank, Hambrecht and Quist. Evergreen also announced its first operating profit from harvesting activities, for the six months to 31st December 1998, of $890,000 (1997 half year loss of $186,000), following the commencement of harvesting in Northland late last year. Total operating revenue for the six months reached $2.393 million (1997 $222,000). Chief Executive, Mr Mark Bogle, said that although pruned log prices had eased slightly in recent months, this was regarded as a temporary situation and demand for unpruned sawlogs was recovering in traditional Korean and Japanese markets. There was also encouraging news of improved access to the US market, he said. Chairman, Mr Peter Wilson, said the one-for-six renounceable pro-rata issue of convertible notes of $1.00 each will have a ten-year term but with the ability to convert into shares at the investor's option at any time before the redemption date. Interest on the notes will accrue and on redemption after 10 years the noteholders who have not converted, will receive a cash return of $2.00 per note for the $1.00 investment, equivalent to a compounding annual pre-tax return of 7.18 per cent. Describing the notes as an "innovative concept", Mr Wilson said the advantage of the notes was that they provided investors an opportunity to invest at a low point in the forestry cycle, with downside protection through the secured fixed return. "By providing the attributes of a compounding fixed interest security, but with the opportunity to convert the notes (and interest accrued at the time) into shares at an exercise price of 55 cents, investors can watch the timber commodity cycle and decide when they want to lift their leverage by converting into shares. Until then they can stay with the notes and receive, over the ten year period, an effective return of over 7 per cent, which is considerably better than bank deposit rates at present." Mr Wilson said the note issue also offered the company a number of advantages. "As a pure play forestry owner this long term finance will enhance our flexibility of harvest timing consistent with our objective of gaining premium prices for intensively managed clearwood, and being able to capitalise on price spikes." " From our point of view, and from that of our investors, the issue means we can 'keep our powder dry' during the present downturn by reducing the need to harvest and thereby sacrifice value." "Accordingly, the risk profile of the notes is relatively low and the potential for value growth is high, which we believe underlines the case for these zero coupon convertible notes". The notes are secured by a second ranking floating charge over the assets of the company and Evergreen has the right to accelerate the redemption of the notes at any time after three years, if the share price is above $1.10 per share. From the investor's point of view an early recovery in the forestry sector could bring a significant return due to the ability to convert into shares at a pre-determined share value. The company wishes to encourage the participation of as many existing shareholders as possible and as a result shareholders on the register as at 19th February 1999 (the record date for entitlements) will receive a 10 per cent discount on the first 1000 notes applied for. Mr Wilson also announced today that Mr Don Campbell, Chief Executive of HQGF, will be invited to join the Evergreen board following the completion of the issue, noting Mr Campbell's international investment banking expertise and his forestry industry knowledge would be of considerable benefit to Evergreen. Adviser to the issuer is Macquarie New Zealand and Forsyth Barr is the organising broker. Friday, 7th August 1998 Evergreen Forests Consolidates Evergreen Forests Limited's year end result was in line with expectations, the company's Chief Executive, Mark Bogle said today. The June year operating deficit of $146,668 represented a modest improvement on the 1997 deficit of $202,411, he said. "Having regard to the volatility of Asian markets, a result approaching break even, and a substantial preservation of shareholder value, can be considered satisfactory," he said. "The last year was testing for all companies in the forestry sector. Evergreen has positioned itself to be able to respond to market dynamics. While we remain committed to our growth objectives, we have given particular attention to ensuring the underlying value of our existing assets is maintained and an appropriate degree of flexibility is built into our debt obligations." "An independent valuation by Groome Pöyry concluded that there was little change in the value of the company's forests compared with 12 months ago. This indicates that the increment in value through biological growth compensated for the decline caused principally by changes in Asian economies." "The latest valuation equates to a net asset backing of $0.83 per share, compared with $0.89 as at 30 June 1997," said Mr Bogle. He said the company's capitalised facility through its bank had been reviewed and principal debt obligations had been extended to December 2001. "Whilst the Asian downturn has caused a significant decrease in demand for export logs, there is a strong domestic market for high quality pruned logs. Evergreen plans to harvest a modest volume this year, with emphasis on pruned stands. Recent pruned log processing trials have given very favourable results," he said. Tuesday, 3rd February 1998 Evergreen asset values largely unaffected by Asian situation Evergreen Forests Limited has no current harvesting activity and the recent downturn in the export log markets, caused by the Asian situation, has had only a small impact on the underlying value of the company's forest assets, said Evergreen's CEO, Mr Mark Bogle, today. In releasing the half year result to 31 December 1997, Mr Bogle said that an updated valuation by Groome Pöyry Limited had concluded that on the basis of recent market signals, the company's forest value had reduced by just 1.9 per cent from $122.2 million to $119.9 million. Mr Bogle said that this change equates to a net asset value per share of $0.84, compared with $0.89 at 30 June 1997. "Groome Pöyry believes that the present downturn in export log prices is temporary and the market will recover over the next two to three years. I share this view", said Mr Bogle. He said the operating result for the half year was on target. A small deficit ($186,000) reflected last year's decision to defer harvesting in anticipation of improved market conditions. "Despite the Asian situation there is still solid demand for pruned logs and last year's price gains for that grade have been maintained. The pruned log market is by far the most important value driver for us and we are on track to start large scale harvesting as planned in 1998/99", he said. Mr Bogle predicted that the global demand for wood products would greatly exceed supply capability over the medium term, and plantation grown timber would be an ever-increasing component in meeting the supply gap. "Our strategy is to build a Mr Bogle said the Asian situation had created uncertainty which could provide Evergreen with some attractive investment opportunities. "We are continuing to investigate these opportunities and examine innovative ways to finance further growth", he said. Tuesday, 8th August 1997 Evergreen reports substantial growth in forest holdings.Evergreen Forests Limted, in announcing it's annual result, reports that it's forest holdings have almost doubled during the last 12 months. Chief Executive, Mr Mark Bogle said that as at 30 June 1997 the company owned 17,777 stocked hectares, up from 9,553 hectares last year. Mr Bogle said that the expansion was in line with growth objectives and had considerably improved the company's near term harvest capability. the outlook for log prices has improved and susbstantial harvesting is expected to begin in 1998/99, he said. The Company's enlarged estate has been independently valued at $122.2m as at 30 June 1997 by Groome Poyry Limited (1996: $72.2m). Net asset value, incorporating the latest valuation, has been maintained at $0.89 per share. The Company reported an operating deficit of $202,000 (1996: $63,000). Mr Bogle said that he was pleased with this result which was ahead of expectations given last year's decision to defer harvesting. "We anticipate a continuation of our growth strategy in 1997/98", said Mr Bogle. Friday, 23rd May 1997 Amended announcement: Overseas Investment Commission consent has been granted for the acquisition of Otau forest (420 net stocked hectares). This concludes the approval process for the acquisition of the South Auckland Forest estate (3,300 net stocked hectares) from Fletcher Challenge Forests. Wednesday, 14th May 1997 Evergreen Forests' Chief Executive, Mr Mark Bogle, has announced the appointment of Mr David Sayer as General Manager. Evergreen's General Manager is responsible for all aspects of the company's forest development, harvesting and marketing (which are carried out by industry specialists on contract), and evaluation of new investment opportunities. Mr Sayer has had fifteen years practical forestry experience within New Zealand and overseas. Most recently he was Area Manager for Fletcher Forests Taupo operations with responsibility for forest management (65,000 hectares), harvesting (960,000 cubic metres per annum), and sawmilling (140,000 cubic metres annual lumber production). Mr Bogle also announced that Mrs Nichola Toresen (formerly Administration Officer) is now Evergreen's Investor Relations Manager. Monday, 12th May 1997 Overseas Investment Commission has been granted for the acquisition of Patetonga, Kopu, Coroglen freehold forests and the Hamilton forestry right (totalling 2,880 net stock hectares) from Fletcher Challenge Forests. The balance of the South Auckland Forest estate being the Otau forest (420 net stocked hectares) is subject to a separate application. Tuesday, 29th April 1997 Evergreen Forests allotted 4.9m ordinary shares, credited as fully paid following shareholder approval on the 15th April 1997. Issue Price Per Unit: $0.555. The shares were issued to fund the acquisition of Fletcher Challenge Forests South Auckland Forests. Thursday, 24th April 1997 Evergreen Forests allotted 25.8m ordinary shares, credited as fully paid following shareholder approval on the 15th April 1997. Issue Price Per Unit: $0.555. The shares were issued to fund the acquisition of Fletcher Challenge Forests South Auckland Forests. Tuesday, 15th April 1997 The shareholders of the company approved the following special resolution at a special meeting held 15th April 1997. The Board be authorised to issue up to 33m ordinary shares in the capital of the capital of the company to or for the benefit of such investors in the US and elsewhere and in such proportions as the Board thinks fit, such shares to rank pari passu with the existing ordinary shares in the capital of the company. Friday, 21st March 1997 Evergreen Forests' plantation estate will increase to nearly 17,000 stocked hectares following the $30 million purchase of 3,500 hectares of mature forests from Fletcher Challenge Forests. These high quality South Auckland freehold properties have near term harvest potential and will give rise to early cash flows said Evergreen's Chief Executive Officer Mark Bogle. Evergreen's strategy is to add value by acquiring mid rotation and mature forests. This acquisition represents a material step towards a medium term goal of attaining a balanced 30,000 hectare estate. Evergreen will fund the purchase by way of a placement of 30 million shares at $0.555, to mainly US based institutional shareholders, and the balance through an increase in the Company's existing capitalised term loan facility. Mr Bogle said that the placement had been negotiated directly by the Company and was not underwritten. The resultant cost saving would offset the small discount to market. Evergreen's analysis showed that the acquisition was non dilutive and will maintain existing shareholder returns and should add value as a consequence of the Company's increased scale, enhanced cash flow profile and improved shareholder spread. The acquisition is subject to shareholder approval of the placement and regulatory consents. A small proportion of the properties are in joint ventures and consents will be required from the joint venture partners. Mr Bogle said that the Evergreen Board will recommend shareholders approve the placement at a special meeting to be held on 15 April 1997. A Notice of Meeting will be forwarded to shareholders on 27 March 1997. Friday, 21st March 1997 Evergreen obtains OIC consents Evergreen Forests announced they have obtained Overseas Investment Commission consents for the two properties they purchased in December 1996, located in the Northland and Gisborne regions. "Both forests can now be fully integrated into Evergreen's estate promoting economies of scale and operational synergies as both are close to existing properties." said Evergreen's Chief Executive, Mark Bogle. "The purchase of these two freehold properties is in line with our target of developing a high quality forestry estate of at least 30,000 hectares which complement our existing estate in terms of location, quality and maturity profile." Tuesday, 4 February 1997 Evergreen Forests Limited plantations increased in value by 24 per cent over the six months to 31 December as a consequence of further acquisitions and development, the company said today in releasing its interim result. Chief Executive, Mr Mark Bogle, said the directors had asked independent valuers Groome Poyry for a mid-year valuation update to account for new plantings in Northland and the East Coast, the acquisition in December of two properties, and half a year's growth. At a discount rate of nine per cent, Groome Poyry's valuation of the tree crop at 31 December was $89.9 million, compared with $72.2 million at 30 June 1996. This equates to net asset backing of 97 cents per share. For the six months, Evergreen reported an operating deficit after tax of $195,000 (1995 half year: $135,000 deficit) on revenue of $695,000 (1995: $1.5 million). The lower revenue was due to a reduction of harvesting on the West Coast of the South Island. Mr Bogle said this was foreshadowed in the last annual report. Harvesting was reduced because the directors believed the net return to shareholders, at present log prices, was lower than could be obtained by allowing the trees to grow in size and value. Until forecast harvesting in 1998/99 operating profits would remain at or slightly below break-even. Meanwhile, Evergreen would continue its strategy of growing by acquisition and planting, said Mr Bogle. Monday, 3 February 1997 Evergreen Forests has announced further acquisitions of land and trees in Northland and Gisborne regions. Evergreen will pay $10.7 million for two freehold properties (Te Kuri and Te Marunga) comprising 2,846 hectares and including 1,341 stocked hectares. The purchases are conditional upon Overseas Investment Commission consent. Te Kuri has been purchased from Landcorp. Te Marunga was privately owned. The consideration for Te Marunga includes 323,077 shares issued at $0.65. Evergreen's Chief Executive, Mark Bogle said the properties represented very good value and met the company's objective of acquiring quality forests which complement existing holdings. The planted area (established between 1972 and 1991) will increase Evergreen's forest holdings by more than ten percent. "We have existing properties in close proximity to both Te Kuri and Te Marunga so there will be operational synergies. By the end of 1997 we will have a fully planted contiguous 6,000 hectare forest on the Pouto Peninsular and a grouping of similar size on the East Coast." Mr Bogle said. "As outlined in our last annual report, our priority is to pursue new acquisitions in what for us is a favourable investment climate." Tuesday, 10 December 1996 Evergreen sees favourable conditions for further forest investment Evergreen Forests Limited said today, in announcing its annual result, that current weak market conditions for logs, had created a favourable environment for its forestry investment plans. As a result the company would put much of its effort in the year ahead into pursuit of its growth strategy, said the Chief Executive, Mr Mark Bogle. The company reported an operating deficit of $63,375 for the year (1995: $269,840 surplus) on revenue down 26 per cent to $2,549,930 (1995: $3,428,207) due to reduced log harvesting, lower market prices, and the cessation of farming activities. Mr Bogle said this result was in line with the directors' forecast of a small operating loss. He said a further reduction in harvest volume was likely in the short term, unless prices improved. Because of New Zealand's fast growth rates, and because it had no commitments to downstream processing, Evergreen was able to delay its harvest without economic penalty, with the increased volume from biological growth fully compensating for the delayed cash flow. "Our present low harvest volume means that, in any event, we are largely unaffected by the cyclical downturn in log prices. "Because of the age class profile of our forests, our first substantial harvest capability will be in two to three years, by which time we expect market conditions to be more favourable." Evergreen also said that independent forestry consultants, Groome Pöyry Limited ("GPL"), had valued its forestry assets at 30 June 1996 at $83.3 million when using the eight per cent discount rate applied in previous valuations. More conservative log price assumptions were applied, consistent with recent market trends. On this basis, there was a small decrease from the 1995 valuation of $86.5 million. The latest valuation equates to a net asset value of $1.00 per share (1995: $1.10). Using book value (based on historic cost) the asset value per share was $0.79 (1995: $0.80). However, the GPL valuation also said there was evidence that the New Zealand market was currently examining forestry investments at generally higher discount rates than applied last year, due to higher real rates of interest in the economy. On the basis of a discount rate of nine per cent, but no allowance for real price increases, Evergreen's forests had a value of $72.2 million ($0.89 per share net asset value). GPL considers that the forest value lies within the range derived using discount rates from eight per cent to nine per cent real. The company's annual general meeting is scheduled for October 18 in Auckland. Friday, 2 August 1996 Evergreen Forests Limited announced today that quotation of its American Depositary Receipts (ADRs) would start this week. The company's Level 1 ADRs are sponsored by Bankers Trust Co, New York. American Depositary Receipts are US dollar denominated negotiable instruments issued in the US by a depositary bank representing ownership in non-US securities. ADRs enable US investors to acquire and trade non-US securities without the complications associated with investing in an overseas market. ADRs also provide non-US companies with access to the US capital markets, the largest domestic investor base in the world. Evergreen's Chief Executive, Mr Mark Bogle, said he was confident that over time, the ADR programme would:
Other New Zealand companies with ADRs include: Telecom, Fletcher Challenge, Brierley Investments and most recently, Tranz Rail. About 1,600 companies representing over 60 countries have established ADR programmes. Evergreen is a public company listed on the New Zealand Stock Exchange. The company owns or has cutting rights over 21,000 stocked hectares (52,000 acres) planted in fast-growing radiata pine. Its forest properties are principally located in Northland, South Auckland, the East Coast and the West Coast of the South Island. The company's web site is located at: www.evergreen.co.nz For information on the New Zealand stockmarket and the company's share price on the NZSE, please go to: www.nzx.co.nz Return to Public Announcements |
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