Conifex Timber Inc. reported results for the 1Q ended March 31, 2020. Adjusted EBITDA from continuing operations was positive $0.5 million for the quarter, which represented an improvement of $4.6 million over the 4Q 2019, primarily attributable to increased operating earnings and lower selling, general and administrative costs. Adjusted EBITDA included softwood lumber duties expense of $2 million in the 1Q 2020, 1.4 million in the last quarter of 2019 and $3.8 million in the 1Q 2019.
Conifex Timber’s revenues totalled $30.6 million in the 1Q 2020, an increase of 10% from the prior quarter and a decrease of 54% from the 1Q 2019. The increase in revenue compared to the prior quarter primarily consisted of higher sales realisations in the 1Q 2020.
Net income from continuing operations included a foreign exchange loss on long-term debt of $2.1 million in the 1Q 2020 compared to foreign exchange gain on long-term debt of $2.4 million and $4.5 million in the previous quarter and the 1Q 2019, respectively. Finance costs were $3.5 million in the 1Q 2020, $21.7 million in the previous quarter and $6 million in the 1Q 2019.
“With $12.1 million of cash, a largely debt-free lumber business and predictable cash flows from power generation, Conifex is well positioned to withstand the economic challenges BC lumber producers face resulting from the COVID-19 pandemic,” said Ken Shields, Chairman and CEO.
Conifex and its subsidiaries’ primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.