August 1, 2019 – Vancouver, British Columbia – Western Forest Products Inc. (TSX: WEF) (“Western” or the “Company”) reported adjusted EBITDA of $15.1 million in the second quarter of 2019. Results were impacted by challenging markets which led to production curtailments, and higher British Columbia (“BC”) coastal operating costs.
Second Quarter Highlights
- • Levered specialty product sales to generate $15.1 million EBITDA despite challenging markets
- • Commenced the Arlington planer ramp up to produce more finished products closer to end customers
- • Columbia Vista performed in line with our expectations and contributed a full quarter of earnings
- • Returned $8.5 million to shareholders via regular, quarterly dividend
- • Completed $6.6 million of share repurchases, cancelling 3.8 million common shares
On June 28, 2019, the United Steelworkers Local 1-1937 (“USW”), the union representing a majority of the Company’s hourly employees and employees working for its timberland contractors in BC, served seventytwo hours’ notice of strike action. The strike, which commenced July 1, 2019, is ongoing at all USW-certified Company manufacturing and timberlands operations. Ladysmith sawmill, Value-Added remanufacturing facility and both United States divisions (Arlington and Columbia Vista) continue to operate.
Western’s adjusted EBITDA result of $15.1 million in the second quarter of 2019 compared to adjusted EBITDA of $50.2 million in the second quarter of 2018, and $18.1 million reported in the first quarter of 2019. Operating income prior to restructuring and other income was $1.4 million in the second quarter of 2019, compared to $39.7 million in second quarter of 2018, and $5.7 million reported in the first quarter of 2019.
Net loss of $0.7 million ($nil per diluted share) was reported for the second quarter of 2019, as compared to net income of $27.1 million ($0.07 per diluted share) for the second quarter of 2018 and $1.9 million ($nil per diluted share) in the first quarter of 2019.
Source: Western Forest Products