MIRA
INFORM REPORT
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Report Date : |
31.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
TEMBEC ENTERPRISES INC. |
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Registered Office : |
800 Boul Rene
Levesque Suite 1050, Montreal, PQ - H3B 1X9 |
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Country : |
Canada |
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Date of Incorporation : |
16/08/2001 |
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Legal Form : |
Federally Chartered Corp. – Private |
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Line of Business : |
Manufacturer of a variety of paper and wood products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
IDENTIFICATION & EXECUTIVE
SUMMARY
Company
Name: TEMBEC ENTERPRISES INC.
Trade
Name:
Address: 800
BOUL RENE LEVESQUE SUITE 1050
City: MONTREAL
State/Province: PQ
Zip
Code: H3B
1X9
Country: CANADA
Telephone: 514-871-0137
Facsimile: 514-397-0896
URL www.tembec.com
Legal
Form: Federally
Chartered Corp. - Private
Shareholder:
Founded (D/M/Y):
In K CAD as of : 30/09/2006
Sales / Revenue: 923,000
Net Income: 35,000
Total Equity: 774,000
Number of
Employees:
Business
Activity: The
Company is manufacturer of a variety of paper and wood products.
NOTE TO CLIENT
**************************
*******************************************************************************************************
PLEASE SEE FINANCIALS
FOR UPDATED INFORMATION
******************************************************************************************************************************
Person Contacted:
Mr. Richard Tremblay, Controller. He verified and updated the information presented
to him.
Please note that
due to the Subject's recent corporate restructuring, Mr. Tremblay could not
provide an exact employment figure, however, he did say the company has between
5000 and 6000 employees.
IMPERATIVES
Found on the
Government of Canada Website:
Spruce Falls Inc., A Division of Tembec
Inc., Pleaded Guilty to Charges Under the Fisheries Act Montreal, Quebec, May
16, 2006, Spruce Falls Inc., a division of Tembec Inc. that operates the
industrial complex in Temiscaming in Quebec, appeared yesterday before a Quebec
Court judge and pleaded guilty to charges under the Fisheries Act.
Spruce Falls Inc. pleaded guilty to having
deposited a deleterious substance (final effluent from the biological treatment
system) into the Ottawa River 16 times between April 9, 2003, and December 14,
2004, in violation of subsection 36(3) of the Fisheries Act. In addition, the
company twice failed to monitor final effluent from the biological treatment
system. Lastly, between March 1 and June 14, 2004, Spruce Falls Inc. partially
ignored a direction issued by an inspector under 38(6) of the Fisheries Act
requiring the implementation of measures to prevent further deposits of
deleterious substances from occurring.
The $750,000 penalty that Spruce Falls Inc.
was ordered to pay consists of a $250,000 fine and a $500,000 payment to the
Environmental Damages Fund, administered by Environment Canada. The judge based
the decision on a submission submitted jointly by the Crown and the defense.
Company officials attested to the fact that an anaerobic effluent treatment
system was fully installed at the Témiscaming industrial complex and that the
system has been in operation since January 2006. The payment to the
Environmental Damages Fund will be used to promote rehabilitation projects.
Local community and environmental groups will have an opportunity to submit
project proposals for the funds. The Environmental Damages Fund ensures
polluters take responsibility for offences and gives courts a way to guarantee
that money is directly invested to improve the quality of the environment.
The charges were laid following an
investigation by Environmental Enforcement officers of Environment Canada Quebec
Region. Environment Canada investigates potential pollution offences under the
Canadian Environmental Protection Act, 1999 and Canada's Fisheries Act. They
help ensure that companies, government employees and the general public comply
with legislation and regulations that protect Canada's environment.
LEGAL
Legal Form: Federally
Chartered Corp. - Private
Incorporation
State Canada
Status: ACTIVE
Since (D/M/Y): 16/08/2001
The company is NOT
required to publish an annual financial report.
The Company federally chartered in Canada under the following registration.
Corporation #3934284
Corporation Name(s): Tembec Enterprises Inc./
Les Entreprises Tembec Inc.
Old Name(s) and Change Date(s)
SPRUCE FALLS INC. - 2007/01/09
Mailing Address: [Latest address on file]
Care of:
Street: 800 RENÉ-LÉVESQUE BLVD. WEST SUITE 1050
City: MONTREAL
Province: Quebec
Postal Code: H3B1X9
Country: Canada
Registered Office Address: [Latest address on file]
Care of:
Street: 800 RENÉ-LÉVESQUE BLVD. WEST SUITE 1050
City: MONTREAL
Province: Quebec
Postal Code: H3B1X9
Country: Canada
Reg. Off. Eff: 2007/01/09
Status: Active
Incorporation Date: 2001/08/16
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The Company provincially qualified in Quebec under the following registration.
Incorporation Number: 1147592696
Legal Name: LES ENTREPRISES TEMBEC INC.
Incorporation Date: 12/1/1991
Last Annual Report: 1/13/2007
Location: Canada
Address: 800 BOULEVARD RENE-LEVESQUE OUEST SUITE 1050
MONTREAL (QUEBEC) H3B 1X9
Registered Agent: TEMBEC INC.
R/A Address: 800, BOUL. RENE-LEVESQUE OUEST # 1050
MONTREAL QC
MANAGERS / KEY PERSONNEL
Mr. Jim Lopez President
Mr. Antonio
Fratianni Secretary
Mr. Reginald
Bastien Officer
Mr. Richard
Tremblay Controller
AFFILIATED COMPANIES
Mr. Bastien stated
that the Company has several affiliates. The following is a sample of these
affiliates:
Tembec Tarascon SA
France
Tembec USA LLC USA
Arc Resin Corp.
USA
Tembec St-Gaudens
SA France
TEMBEC INVESTMENTS
INC.
TEMBEC INC.
Parent Companies
Parent Company: SPRUCE FALLS ACQUISITION CORP.
Address: 1, MACPHERSON AVENUE
City: KAPUSKASING
State/Province: ON
Zip Code:
Country: CANADA
Ultimate Parent
Company: TEMBEC INDUSTRIES INC.
Address: 800 RENE LEVESQUE
SUITE 1080
City: Montreal
State/Province: PQ
Zip Code:
Country: CANADA
The following is selected stock price and financial statement information for TEMBEC INC. (an affiliated company) which trades publicly on the Toronto Stock Exchange under the symbol TBC.
As of 11/7/2007 in Canadian Dollars
Stock Price:
0.400
52 Week High: 3.150
52 Week Low: 0.350
Shares Outstanding: 85,616,232
Fiscal Year End: 12/31/2006 in Thousands of Canadian Dollars:
Total Assets: 3,017,000
Total Liabilities:
2,429,000
Total Equity:
588,000
Net Sales: 3,411,000
Net Income: -304,000
SUBSIDIARIES
The Company has no
subsidiaries.
BANKS
National Bank of
Canada
City: Montreal
State/Province: PQ
Country: CANADA
Telephone: 514 331-2633
This bank only
provides credit information to other banks.
State/Province: PQ
Country: CANADA
Tembec Inc. and the
Subject currently have a joint available credit facility of CAD 250 Million
through CIT Business Credit Canada.
PAYMENT HISTORY
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Supplier's Name/Industry Terms Amount/Pay Habits/Comments
Rptd Open Credit Credit High Total Current Past Due/Pay Period
Date Date Limit Limit Dt. Credit Owing $ 1st 2nd 3rd
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Mfr-Pump & Pumping E:
*Oct 0 640 640 640 0 0 0
Personal Services:
*Oct 0 22,170 22,170 4,257 17,913 0 0
Whlsl-Industrl Paper:
*Oct 0 1,950 87 87 0 0 0
Mfr-Petroleum Prdts:
*Oct 0 738K 738K 706K 32,135 0 0
Mfr-Pump & Pumping E:
*Oct 0 703 703 703 0 0 0
Mfr-Inorganic Chemcl:
*Oct 0 335K 335K 163K 169K 0 1,521
Trucking: Merged accts
*Oct 0 16,174 16,174 8,306 7,642 0 226
Arrg Transp of Freig:
*Oct 0 32 32 20 12 0 0
Whlsl-Professnl Equp:
*Oct 0 6,265 6,265 4,832 1,390 43 0
Wholesale-Elec Appls:
*Oct 0 20,000 4,639 4,639 0 0 0
Mfr-Primary Metal:
*Oct 0 11,701 1,808 1,441 356 11 0
Whlsl-Plumbing/Heatg:
*Oct 0 138 138 0 138 0 0
DICOM EXPRESS INC.: 514-636-8033
*Sep 0 48 48 19 29 0 0
Trucking:
*Aug 0 6,498 6,498 6,393 0 0 105
------- ------- ------- ------- ------- -------
P.I. = 7 90 Days 1,160K 1,132K 901K 229K 54 1,852
Reported ------- ------- ------- ------- ------- -------
Whlsl-Ind Mach Sppls:
*Jul 0 3,107 744 0 744 0 0
Mfr-Engine:
*Jun 0 16,853 2,335 2,335 0 0 0
Mfr-Paint, Varnishes:
*May 0 450 450 0 450 0 0
Whlsl-Ind Mach Sppls:
*Apr 0 12,419 12,419 11,784 635 0 0
Transportation Serv:
*Mar 0 31 31 31 0 0 0
Business Services:
*Mar 0 7,000 6,083 6,083 0 0 0
Whlsl-Ind Mach Sppls:
*Mar 0 284 284 0 284 0 0
Whlsl-Electronic Pts:
*Feb 0 235 235 0 235 0 0
Mfr-Audio/TV Equip:
*Jan 0 200 9 9 0 0 0
Whlsl-Ind Mach Sppls:
*Jan 0 398 398 398 0 0 0
Mfr Fabricated Metal:
*Jan 0 173 173 0 173 0 0
Whlsl-Ind Mach Sppls:
*Oct 0 7,966 7,966 5,976 1,990 0 0
------- ------- ------- ------- ------- -------
P.I. = 7 Total 1,209K 1,164K 928K 234K 54 1,852
Reported ------- ------- ------- ------- ------- -------
PAYMENT TRENDS
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Payment C.I. Number of Total Current Overdue
Quarters Index Score Suppliers Owing $ 1st 2nd 3rd
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3 Qtr/2007 2 6 11 941,588 895,577 44,756 1,150 105
2 Qtr/2007 3 6 17 752,072 687,032 64,146 33 861
1 Qtr/2007 2 6 20 850,746 802,297 45,777 2,568 104
4 Qtr/2006 6 6 18 1,308K 1,057K 250,281 0 104
3 Qtr/2006 3 9 17 1,108K 1,021K 85,913 775 104
2 Qtr/2006 2 9 19 929,179 888,745 38,818 1,537 79
1 Qtr/2006 5 13 18 1,060K 922,424 125,965 592 11,491
4 Qtr/2005 5 19 19 1,177K 1,027K 107,554 42,863 71
3 Qtr/2005 3 12 17 1,111K 1,024K 82,053 3,610 807
FINANCIAL INFORMATION
Fiscal Year End : In KCAD
Year-End (D/M/Y) 29/09/2007 30/09/2006
30/09/2007
Income Statement Projected Consolidated Consolidated
Global Net Sales 1,632,000 923,000 945,000
Gross Profit 1,403,000 792,000 815,000
Operating Income (7,000) 34,000 (126,000)
Taxes (11,000)
(7,000) (42,000)
Net Income (Loss) of the Year (16,000) 35,000 (84,000)
Assets
Inventories 339,000 148,000 179,000
Trade Accounts Receivable 305,000 131,000 90,000
Cash and Cash Equivalents 16,000
Other Current Assets 13,000 7,000 11,000
Total Current Assets 657,000 302,000 280,000
Property, Plant and Equipment 654,000 701,000 777,000
Total Fixed Assets 718,000 752,000 808,000
Other Assets 64,000 51,000 31,000
Total Assets 1,375,000 1,054,000 1,088,000
Liabilities
Trade Accounts Payable 175,000 72,000 98,000
Other Current Liabilities 58,000 96,000 137,000
Total Current Liabilities 233,000 168,000 235,000
Other Long Term Liabilities 96,000 112,000 117,000
Total Long Term Liabilities 96,000 112,000 117,000
Total Liabilities 329,000 280,000 352,000
Equity
Net Equity 1,046,000 774,000 736,000
Total Equity 1,046,000 774,000 736,000
FINANCIAL INDICATORS
Year-End (D/M/Y) 29/09/2007 30/09/2006 30/09/2007
Quick Ratio 1.36 0.91 0.42
Current Ratio 2.81 1.79 1.19
Return on Sales -0.00 0.03 -0.08
Return on Assets 0.03 -0.07
Return on Equity 0.04 -0.11
Debt to Equity 0.31 0.36 0.47
Solvency 0.97 0.97 0.96
A/R Turns 7.04 10.5
The above figures
are listed in thousands of Canadian Dollars.
Please note that
the 2007 financial figures are projected. Mr. Tremblay has not provided us with
the actual figures for 2007 at this time.
HISTORY
Please note that
Company changed its name to TEMBEC ENTERPRISES INC. from SPRUCE FALLS INC. in
January 2007 as a result of a corporate restructuring.
CURRENT OPERATIONS
SIC Code:
NAICS Code: 32212
Paper Mills
Business Activity:
The Company is manufacturer of a variety of paper and wood products.
The Subject is
split evenly between the following business operations
Pulp Mill
Saw Mill
Paperboard
Converter
The Company
imports and exports worldwide.
The heading address
is the headquarters for the Subject. The facility consists of leased office
space.
The Company has
several plant and warehousing facilities located in four provinces: British
Columbia, Manitoba, Quebec, and Ontario.
PUBLIC RECORD
A search of public records revealed the following actions against the Company and no bankruptcy petitions. We could not determine the status of the actions at
this time.
Writ of Summons:
Defendant SPRUCE FALLS INC Date Oct 31, 2005
Plaintiff 9057 3692 QUEBEC INC Court Provincial Cour
Amount 42,526 Location Matane
Reason Goods Sold & Delivered File # 000643048
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Writ of Summons:
Defendant SPRUCE FALLS INC Date Apr 06, 2004
Plaintiff 9057 3692 QUEBEC INC Court Provincial Cour
Amount 42,526 Location Quebec
Reason Goods Sold & Delivered File # 028368041
COMMENTS
The Subject, federally registered in Canada in 2001, is engaged as an paperboard
converter, pulp mill and saw mill.
The payment record was generally satisfactory
and the operating history is clear. Two actions were found against the Company, however, no bankruptcy petitions were reported or noted. The Company
is responsible for normal business transactions.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)