Stella-Jones' 3Q 2020 sales reached $742 million, up $111 million, or 18%, versus sales of $631 million for the corresponding period last year. 3Q 2020 net income rose to $79 million, or $1.17 per share. EBITDA increased 38% to a new high of $132 million, or a margin of 17.8%.
“I am extremely proud of the diligent work ethic and unwavering commitment that our employees have displayed during these rapidly changing and extremely challenging times. Supported by their contribution and the resiliency of our business, we delivered another record performance this quarter, with growth in sales, profitability and cash from operations. Benefiting from the continued strong demand across most of our product categories and the exceptional rise in market lumber prices, we realized sales growth of 18% and increased EBITDA by 38% to a quarterly best of $132 million. This significant increase in profitability translated into cash from operations of $148 million which was used to invest in our network, reduce our leverage and return cash to shareholders in the form of dividends and share repurchases. We ended the quarter in a very strong financial position with a net debt to EBITDA ratio of 1.4x and over $300 million in available liquidity,” stated Éric Vachon, President and CEO of Stella-Jones.
Sales for January-September 2020 amounted to $2,018 million, versus $1,744 million for the corresponding period last year. Excluding the positive impact of the currency conversion of $23 million, pressure-treated wood sales increased by $231 million, or 14%, and logs and lumber sales grew by $20 million, or 25%. The year-over-year sales growth in pressure treated wood was supported by strong demand and improved pricing in the three core product categories, particularly for residential lumber, while the logs and lumber increase in sales was largely due to the robust lumber market in the 3Q.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products.
