Conifex Timber Reports Second Consecutive Year of Record Earnings

SEATTLE (Scrap Monster): Conifex Timber Inc. has announced the results for the fourth quarter of 2017 and for the full previous year. The adjusted EBITDA surged to record high of $17.5 million, significantly higher from $12.1 million during the prior quarter. The adjusted EBITDA nearly doubled when matched with $9.3 million in the corresponding quarter of 2016. The adjusted EBITDA for the full year 2017 stood at record $46 million. This is the second consecutive year of record adjusted EBITDA.

The lumber segment recorded robust growth in performance. The revenues from Conifex-produced lumber surged higher by 11% in Q4. Shipment volumes recorded 2% growth. Wholesale lumber revenues increased by 16%, whereas the wholesale lumber shipment volumes climbed higher by 21%. The lumber production volumes declined marginally by 3% to total 130 million board feet during Q4 ’17. The lumber segment operating income soared to $13.9 million during Q4, as compared with $8.5 million during the quarter prior to that.

The company spent $70.8 million on the capital project to modernize El Dorado saw mill complex in Arkansas. Following ramp-up period, the company commenced shipment of residual products in November. Lumber shipments started on small scale during December last year. Conifex Timber announced that the mill will currently work in single shift. It expects to ramp up the production to 90% of the capacity by end-2018.

Commenting on the outlook for 2018, the company expects gradual recovery to US housing market. The US lumber consumption is likely to post 6% growth during the year. The lumber sales volume to other key destinations including China and Japan are expected to remain steady. The ramp-up of operations at El Dorado Mill will continue in 2018, along with attempts to strengthen the operational efficiency of Canadian mills and the Mackenzie Power Plant.