Conifex Announces First Quarter 2025 Results

Core Insights - Conifex Timber Inc. reported a significant turnaround in financial performance for Q1 2025, achieving EBITDA of $4.9 million compared to negative EBITDA in previous quarters, indicating improved operational efficiency and market conditions [1][5][9] Financial Performance - Revenue from lumber products reached $31.3 million in Q1 2025, a 47% increase from Q4 2024, driven by higher shipment volumes and improved market prices, although it represented a 6% decrease from Q1 2024 [3][9] - Net income for Q1 2025 was $0.6 million or $0.02 per share, a recovery from a net loss of $7.8 million in Q4 2024 and a loss of $4.5 million in Q1 2024 [1][5] - Operating income improved to $2.3 million in Q1 2025 from a loss of $3.0 million in Q4 2024 and a loss of $7.1 million in Q1 2024 [3][5] Production and Shipments - Lumber production totaled approximately 46.3 million board feet in Q1 2025, an 87% increase from the previous quarter, reflecting a ramp-up to two-shift operations [6][7] - Shipments of Conifex-produced lumber were 38.0 million board feet in Q1 2025, a 53% increase from Q4 2024, although down 15% from Q1 2024 due to transportation challenges [7][9] Cost and Expenses - Cost of goods sold increased by 18% from Q4 2024 but decreased by 3% from Q1 2024, influenced by shipment volumes and lower unit manufacturing costs [10] - Selling, general and administrative costs rose to $1.8 million in Q1 2025 from $1.4 million in Q4 2024, but decreased from $2.6 million in Q1 2024 [15] Bioenergy Operations - The power plant sold 47.6 GWh of electricity in Q1 2025, achieving approximately 88% of targeted operating rates, although lower than previous quarters due to operational challenges [13][14] - Revenue from electricity production was $7.0 million in Q1 2025, down from $7.6 million in Q4 2024 and $8.2 million in Q1 2024 [14] Financial Position and Liquidity - Overall debt increased to $84.2 million as of March 31, 2025, compared to $77.3 million at the end of 2024, driven by additional draws on the Pender Term Loan [23] - Available liquidity was $4.2 million at the end of Q1 2025, an increase from $3.6 million at the end of Q4 2024 but a decrease from $10.2 million at the end of Q1 2024 [24] Market Outlook - The North American lumber market is expected to face continued volatility and uncertainty throughout 2025, with challenges from duty deposit rate increases and potential tariffs [30]