Conifex Timber Inc. reported results for the 3Q ended September 30, 2020. Adjusted EBITDA from continuing operations was $7.6 million for the quarter, which reflected the restart and ramp-up of Mackenzie sawmill operations, significantly higher lumber prices and continued positive results from bioenergy operations.
Revenues totaled $37.6 million in the 3Q 2020, an increase of 248% from the prior quarter and an increase of 64% from the 3Q 2019. The higher revenues were attributable to the restart and ramp-up of operations at its Mackenzie sawmill during the 3Q 2020, following a 13-week curtailment in the prior quarter and significantly higher lumber prices.
“Benefitting from improved lumber prices and the safe restart of our sawmill complex, we are pleased to report net income of $2 million during the quarter,” said Ken Shields, CEO. “Despite expectations for lower lumber prices and higher log costs, seasonally higher power prices coupled with the lumber production momentum we have underway are expected to enable us to report a further increase net income in the closing quarter of 2020."
During the 3Q 2020, Conifex Timber generated net income from continuing operations of $2 million, or $0.04 per share, compared to a net loss from continuing operations of $2.7 million or $0.05 per share in the previous quarter and a loss of $11.6 million or $0.25 per share in the 3Q 2019.
Conifex Timber 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.
