Home News Financial News Fortress Global Enterprises Reports Third Quarter 2018 Results and Management Transition

Fortress Global Enterprises Reports Third Quarter 2018 Results and Management Transition

Vancouver, British Columbia, November 5, 2018

Third Quarter 2018 Consolidated Results

Fortress Global Enterprises Inc. ("Fortress Global Enterprises" or the "Company") (TSX:FGE) (OTCQX:FTPLF) reported 2018 third quarter operating EBITDA from continuing operations of $7.5 million compared to operating EBITDA from continuing operations of $2.7 million in the previous quarter and operating EBITDA loss from continuing operations of $1.6 million in the prior year comparative period. The Dissolving Pulp Segment generated operating EBITDA of $9.0 million and the Bio-Products Segment generated operating EBITDA loss of $0.4 million. Corporate costs were $1.1 million in the third quarter of 2018.

Chadwick Wasilenkoff, Chief Executive Officer of Fortress Global Enterprises, commented: "This quarter saw significant operational progress with improving production throughout the quarter. Debottlenecking in the evaporator/concentrator section of the mill proved successful and has shown indicative signs that the mill's operations have more room for improvement. We received the fifth digester operating permit and expect the digester to have a positive impact on the fourth quarter operations. The fourth quarter shut was successfully completed on schedule with the previously announced 50% reduction in downtime and slightly under budget."

Management Transition

Giovanni Iadeluca will be promoted from President of the Company's wholly-owned subsidiary, Fortress Specialty Cellulose Inc. ("FSC"), to President and Chief Executive Officer of Fortress Global effective December 5, 2018 (the "Effective Date"). On the Effective Date, Mr. Iadeluca will replace Chadwick Wasilenkoff, who has tendered his resignation as President and Chief Executive Officer of the Company to pursue other opportunities. During the next month, Mr. Wasilenkoff will work with Mr. Iadeluca to facilitate the orderly transition of leadership. Mr. Wasilenkoff will remain as a director of the Company.

Joe Nemeth, the Company's Lead Director, commented: "The promotion of Mr. Iadeluca follows a robust succession planning process, and represents the Company's new primary focus on operational excellence. In his new role, Giovanni will be responsible for further improving the operating and financial performance of the Company and leading the Company's strategic direction. The board of directors of Fortress Global is pleased to welcome Mr. Iadeluca to this new role, and appreciates Mr. Wasilenkoff's commitment to the Company to ensure that the transition in senior management is accomplished efficiently and effectively. I would like to take this opportunity to thank Mr. Wasilenkoff for his long and valued service to the Company since its inception. Under Chad's leadership, the Company completed a number of M&A transactions, completed many successful debt and equity financings and financial restructuring transactions, and expanded the Company's business into industries with significant growth potential, such as the Dissolving Pulp Segment and, most recently, the Bio-Products Segment."

Mr. Iadeluca commented: "I am very excited about this opportunity. I will bring enhanced focus on the operational performance of our mill, further augment our human capital, and seek to generate value for the Company and its stakeholders. I look forward to working with the Fortress Global team to realize the FSC Mill's full operational potential and to advance the Bio-Products Segment."

Mr. Iadeluca, who joined Fortress Global as President of FSC in October 2016, has over 20 years of senior management experience in the manufacturing industry and is a Chartered Professional Accountant. Prior to joining Fortress Global, Mr. Iadeluca was the Chief Executive Officer of AVTerrace Bay Inc. ("Terrace Bay"), a wholly owned subsidiary of the Aditya Birla Group. As Chief Executive Officer, he was responsible for the restart and turnaround of the Terrace Bay pulp and paper mill, which under Mr. Iadeluca's direction and leadership has seen material improvements in all metrics of operational and financial performance. Prior to his role with Terrace Bay, Mr. Iadeluca acted as Chief Executive Officer in two start-ups: Selenis Canada Inc. (a division of IMG Group), converting the facilities to produce polyethylene terephthalate (known as PET), and PTT PolyCanada LP (a division of Shell Canada Ltd.), a specialty polyester producer, where he initiated the launch of polytrimethylene terephthalate (also known as PTT).

In addition, Sylvain Filion has been promoted to mill manager at the FSC mill. Mr. Filion has been with the FSC mill since July 2018, and has over 16 years of experience in the pulp and paper industry. Prior to joining Fortress, Mr. Filion was plant manager in a biaxially oriented polypropylene (BOPP) film manufacturing plant owned by Inteplast Group, Ltd., a major manufacturer of integrated plastics in North America. Previously, Mr. Filion held positions as plant and production manager at various pulp and paper companies in Québec, including Les Entreprises Rolland Inc., Norampac, a division of Cascades Canada Inc., and Resolute Forest Products Inc. (formerly AbitibiBowater Inc.), where he worked for 11 years. Mr. Filion obtained a Master of Business Administration and a Bachelor of Chemical Engineering degree from Université Laval, and is a member of the Order of Engineers of Québec.

View complete press release

Source: Fortress Global Enterprises

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