Conifex Timber (CFF) Q4 2024 earnings summary

Executive summary

• 2024 was a transition year focused on refinancing, cash conservation, and operational reductions until market conditions improved.

• Successfully refinanced the lumber manufacturing business in June 2024, completing a $25 million secured term loan with PenderFund, later amended to $41 million in January 2025.

• EBITDA from continuing operations was negative $13.6 million for 2024, improved from negative $25.8 million in 2023.

• Reported a net loss of $29.8 million ($0.73 per share) for 2024, a slight improvement from a $30.6 million loss ($0.77 per share) in 2023.

• Fourth quarter 2024 net loss was $11.8 million, higher than the $3.8 million loss in Q3 2024 and $5.3 million in Q4 2023.

Financial highlights

• Q4 2024 reported negative EBITDA of CAD 2.1M, half the Q3 loss; excluding a one-time CAD 3.8M charge, Q4 would have been EBITDA positive.

• 2024 revenue from lumber products was $93.5 million, down 4% year-over-year due to lower shipments.

• Bioenergy revenue was $23.7 million in 2024, a 2% decrease from 2023.

• Cost of goods sold fell 14% year-over-year, reflecting reduced production and shipment volumes.

• Cumulative duty deposits of $38.3M (over CAD 50M) held by U.S. Customs, exceeding $1.20 per share, about four times recent trading price.

Outlook and guidance

• Sawmill returned to two-shift operations in January 2025, expected to boost shipments and lower unit costs.

• Benchmark Western SPF prices averaged $471/1,000 board feet in early 2025, up from $435 in Q4 2024.

• Q2 2025 futures suggest prices could reach $550/1,000 board feet; however, a potential 25% tariff could offset gains.

• Positive EBITDA is expected in Q1 and Q2 2025, supported by higher shipments, lower unit costs, and improved lumber prices.