Conifex Timber Declares Third Quarter 2019 Results

SEATTLE (Scrap Monster): Conifex Timber Inc. reported results for the third quarter of the year ended September 30, 2019. The adjusted EBITDA from continuing operations ended at a loss of $9.2 million, recording improvement from the prior quarter. The EBITDA from continuing operations declined over the quarter to $12.8 million. Meantime, the adjusted EBITDA for the lumber segment rose by $2.9 million.

During the third quarter of the current year, the company incurred a net loss of $16.6 million, as compared with the less loss of $9.1 million during the prior quarter. The revenues witnessed substantial decline by 32% from the prior quarter to total $65.2 million.

The fall in revenues was mainly on account of reduced shipments by lumber segment in line with lower operating rates at its B.C. and Arkansas mills. The lumber segment recorded operating loss of $15 million. This compared with operating loss of $19.1 million in the prior quarter and operating income of $10.3 million in the corresponding quarter a year before.

The shipments of Conifex produced lumber at 105 million board feet was down sharply by 30% from the prior quarter and by 44% in the third quarter of 2018. The revenues from Conifex produced lumber dropped by 35% over the quarter to $48.1 million. Over the year, revenues fell by 58%. Meantime, overall lumber shipments outpaced production by 11%, said the company press release.

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The company expects the reduction in lumber shipments to follow in Q4. The lumber production is likely to surge higher by 10% over Q3. Also, the lumber segment costs are expected to improve in November 2019, thus resulting in solid improvement in lumber segment EBITDA during Q4 this year.