Conifex Timber (CFF) Q4 2023 earnings summary

Executive summary

• Q4 losses narrowed QoQ as the Mackenzie sawmill began benefiting from its green-log transition; lower lumber prices were partly offset by power generation.

• FY2023 recorded a C$25.8M continuing-operations EBITDA loss and C$30.6M net loss, versus EBITDA of C$46.7M and net income of C$24.5M in FY2022.

Financial highlights

• Q4 revenue was C$35.2M, continuing-operations EBITDA loss C$3.5M and net loss C$5.3M; Q3 results were C$38.7M, C$6.7M and C$8.0M, respectively.

• FY2023 revenue was C$141.1M versus C$231.3M in FY2022; operating loss was C$38.7M versus operating income of C$27.5M.

• FY2023 lumber product revenue was C$98.9M, down 49% year over year, primarily due to lower benchmark prices and reduced shipments.

Segment performance

• FY2023 lumber production was 155.8 MMfbm at a 65% annualized operating rate, versus 165.9 MMfbm and 69% in FY2022; curtailments addressed weak markets and high inventory.

• FY2023 produced-lumber shipments were 152.6 MMfbm, down 12% year over year; wholesale shipments were 4.1 MMfbm, down 61%.

• Power Plant electricity sales reached 177.6 GWh in FY2023, about 80% of targeted operating rates, versus 109.7 GWh and 50% in FY2022; bioenergy revenue rose 80% to C$24.1M.

• Q4 lumber production was 33.2 MMfbm; power generation was 43.5 GWh and bioenergy revenue was C$7.7M.