Fortress Paper Announces Third Quarter 2016 Results - Seite 3

Management has taken strong corrective actions and initiatives to improve results at the Landqart mill with a further expansion of the Company's current Lean Six Sigma program.

For a summary of significant developments please refer to the Management's Discussion and Analysis for the three and nine month periods ended September 30, 2016 (available on SEDAR at www.sedar.com).

Selected Financial Information

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the Company's unaudited condensed consolidated financial statements as at and for the three and nine month periods ended September 30, 2016 and the related notes thereto and Management's Discussion and Analysis, which are available on SEDAR.

Reference is made in this news release to operating EBITDA (defined as net income before interest, income taxes, depreciation, amortization, non-operating income and expenses and stock-based compensation), which the Company considers to be an indicative measure of operating performance and a metric to evaluate profitability. Operating EBITDA is not a generally accepted earnings measure and should not be considered as an alternative to net loss or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating this measure, the Company's operating EBITDA may not be directly comparable with similarly titled measures used by other companies. Reconciliation of operating EBITDA to net loss reported in accordance with IFRS is included below.

Selected Financial Information and Statistics

(thousands of dollars, except shipments, unaudited)	Q3 2016	Q2 2016	Q3 2015
Sales	82,148	87,993	85,169
Operating EBITDA(1)	7,628	6,307	5,533
Net income (loss)	20,301	6,893	(5,178)
Adjusted net loss	(3,847)	(6,921)	(8,433)
Paper shipments (tonnes)	2,431	2,714	2,456
Pulp shipments (ADMT)	40,992	39,931	45,377

⁽¹⁾ See Net Income (Loss) to Operating EBITDA Reconciliation.