Conifex Timber reported 2Q net loss of $2.4 million

Aug 16, 2012. /Lesprom Network/. Conifex Timber Inc. reported a net loss of $2.4 million or $0.13 per share for the 2Q 2012 compared to a net loss of $6.5 million or $0.38 per share for the 1Q 2012, and a net loss of $3.6 million or $0.24 per share for the 2Q 2011, as the company said in the press release received by Lesprom Network. EBITDA in the 2Q 2012 was positive $0.6 million compared to negative $3.8 million in the previous quarter and negative $0.8 million in the 2Q 2011. The EBITDA improvement over the comparative periods was mainly attributable to the lumber segment as corporate costs and costs related to the bioenergy segment were relatively constant in each period. Lumber segment EBITDA was positive $1.7 million for the 2Q 2012, an increase of $4.5 million over the previous quarter and $1.5 million over the 2Q 2011. The current quarter EBITDA improvement over both comparative periods was mainly a result of an improvement in mill net price realizations, an increase in shipments of residuals, a favourable inventory valuation adjustment and an increased contribution from the Company's recently acquired subsidiaries, partially offset by higher log costs, costs associated with planned maintenance downtime, slightly higher cash conversion costs and relative decline in profit from lumber future derivatives. Lumber segment revenue totalled $55.8 million during the 2Q 2012 and represented an 18% increase over the previous quarter which was largely attributable to improved lumber prices. Shipment of Conifex produced lumber totalled 112 million board feet, a 3% decline from the previous quarter. Per unit mill net realization during the current quarter increased by 19% over the previous quarter largely due to the shipment of an improved sales mix and a recovery in low grade lumber prices. The higher value sales mix was largely attributable to improved grade outturns resulting from the recent completion of a capital upgrade and a return to a more typical log profile at Mackenzie. Operating rates were 55% during the current quarter and the same quarter last year and 60% for the 1Q 2012. Production volume and costs during the recent quarter were hampered by the planned maintenance downtime taken at both mills to undertake activities related to the mitigation of workplace hazards and the enhancement of safety and risk awareness measures with our employees. The Company estimates costs associated with these initiatives resulted in an expense of approximately $1 million during the 2Q 2012. Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of its products.