PORT TOWNSEND — PT Holdings Co. Inc., parent of Port Townsend Paper Corp., has posted a net loss of $6.3 million in the first quarter of 2006 that ended March 31.
In a report that has not been reviewed by independent auditors, the company also listed a 1 percent increase in net sales during the quarter ending March 31, showing sales of $53.4 million compared with $52.9 million for the three months ending March 31, 2005.
The net loss of $6.3 million compared with a net loss of $1.5 million for the same period in 2005.
After factoring in interest and other expenses, the unaudited net losses were $2.5 million and $5.7 million for the quarters that ended March 31 in 2006 and 2005, respectively, the company said.
The company is planning to release more financial reports Monday, including reaudits of past years.
Company officials said in a Friday statement that one of those audit reports is expected to doubt PT Holding’s future viability.
A conference call that will include CEO John Begley and Chief Financial Officer Tim Leybold to discuss the quarterly results is scheduled for 1 p.m. Monday.
Access to the discussion is available by calling 866-400-2280.
A replay of the call will be available at 800-374-6971, passcode 9379311, for seven days following the live call.
In April, a last-minute agreement with a lender, the CIT group, gave PT Holdings the $5 million it needed to make a crucial $7.5 million payment to bondholders and avoid slipping into default.
Had that payment been missed, the pulp, paper and containerboard company would have gone into default on $125 million of its debt, which could have cast the future of the company into serious doubt.
Before the payment, Standard & Poor’s Ratings Services in New York City announced that it was lowering the company’s corporate credit and senior secured ratings to CCC from CCC+.
“The outlook is negative,” the ratings services added.
Port Townsend Paper is Jefferson County’s largest industrial employer and a major financial contributor to community organizations.
PT Holdings’ companies employ 800 people and annually produces more than 320,000 tons of unbleached kraft pulp, paper and linerboard at its 320-employee mill in Port Townsend.
The company also manufactures approximately 1.8 billion square feet of corrugated products annually at its three Crown Packaging Plants and two BoxMaster Plants in British Columbia and Alberta.
