Conifex Timber reported 3Q net loss of $3.7 million

Oct 25, 2012. /Lesprom Network/. Conifex Timber Inc. reported a net loss of $3.7 million or $0.19 per share for the 3Q 2012 compared to a net loss of $2.4 million or $0.13 per share for the 2Q 2012, and a net loss of $2.2 million or $0.14 per share for the 3Q 2011, as the company said in a press release received by Lesprom Network. EBITDA in the 3Q 2012 was negative $0.5 million compared to positive $0.6 million in the previous quarter and the 3Q 2011. Consolidated EBITDA of negative $0.5 million was comprised of $1 million positive EBITDA from the lumber segment offset by negative EBITDA of $0.3 million from the bioenergy segment and $1.2 million from corporate costs and other items. Costs related to the bioenergy segment, and corporate costs when normalized for the effects of foreign exchange gain or loss, were consistent throughout the comparative periods. Lumber segment EBITDA was $1 million for the current quarter and the 3Q 2011 and $1.7 million for the 2Q 2012. Inventory valuation adjustments, short-term consulting fees and gains from lumber future derivatives resulted in a net expense of $0.4 million in the current quarter compared to a net benefit of $1.5 million in the previous quarter and a net benefit of $0.5 million in the 3Q 2011. Lumber segment revenue totalled $54.4 million during the 3Q 2012 compared to $55.8 million in the previous quarter. A small increase in revenue from lumber shipments despite a 4% decrease in shipment volumes was offset by a decrease in revenue from residual products and from the Company's third party logistics business. Per unit mill net realizations increased by 9% over the previous quarter with one third of the increase attributable to a lower average export tax rate and the balance primarily attributable to the shipment of an improved sales mix. The higher value sales mix was largely attributable to improved grade outturns as a result of the capital upgrade completed during the previous quarter and a return to a more representative sawlog profile at Mackenzie. Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of its products. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon the expected completion of its bioenergy facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.