Conifex Timber Reports Contraction in Net Loss During Q1 2019

SEATTLE (Scrap Monster):  Conifex Timber, Inc. reported results for the quarter ended March 31, 2019. The company incurred net loss of $11.9 million or $0.25 per share during the quarter. This is significant improvement upon comparison with the net loss of $23 million or $0.49 per share in the prior quarter. It must be noted that the company had posted net income of $2.5 million or $0.10 per share in the first quarter of 2018.

The revenues reported 2% decline from the prior quarter to $133.7 million in Q1 2019. Over the previous year, revenues surged higher by 43%. The revenue growth was primarily driven by addition of U.S. mills, but was partially offset by lower shipments and unit sales realizations from B.S. mills.

The lumber segment recorded operating loss of $13.5 million. The segment results were impacted by lower operating rates at its B.C and U.S. mills. This in turn led to higher unit cash conversion costs at its Fort St. James, Eldorado and Glenwood, Arkansas mills. Incidentally, the temporary capacity reduction at Fort St. James mill is expected to extend until mid-2019. Consequently, Conifex Timber anticipates 28% reduction in production capacity from its B.C. lumber mills during the first half of 2019.

The wholesale lumber revenues surged 15% over the prior quarter and more than doubled from the previous year. Unit log costs held steady over the prior quarter, but saw notable jump by 14% over the same quarter a year before. Conifex Timber expensed out $3.8 million in countervailing and anti-dumping duty deposits during the initial quarter of 2019.