Conifex Timber reported 4Q net loss of $7.5 million

Feb 21, 2012. /Lesprom Network/. Conifex Timber Inc. reported a net loss of $7.5 million for the 4Q 2011 compared to a net loss of $3.9 million for the 4Q 2010. The net loss for the year ended December 31, 2011 was $16.9 million compared to a net loss of $10.8 million for the year ended December 31, 2010, as the company said in a press release received by Lesprom Network. EBITDA in the 4Q 2011 was negative $5.2 million compared to positive $0.6 million in the 3Q 2011 and negative $2.2 million in the 4Q 2010. EBITDA in the lumber segment was negative $4.1 million in the 4Q 2011, compared to positive $1 million in the previous quarter and negative $1.2 million in the 4Q 2010. The variance in lumber segment EBITDA between the fourth and third quarters of 2011 was attributable to a decline in mill net price realizations, an increase in conversion costs and variance in earnings from lumber future derivatives. Lumber shipments for the 4Q 2011 totalled 124 million board feet, an increase of 7% over the previous quarter and 250% over the same quarter last year. Revenues from lumber sales totalled $34 million for the both the fourth and third quarters of 2011 compared to $16 million for the fourth quarter of 2010 with the increase primarily attributable to the higher operating rates. Total lumber production during the 4Q 2011 was 95 million board feet compared to 102 million board feet in the previous quarter and 49 million board feet during the same quarter last year. The operating rate during the 4Q 2011 represented approximately 50% of overall annualized production capacity on a two-shift basis. The Company expects to more fully realize in its operating results for 2012 the benefits of initiatives and developmental activities undertaken in 2011. Key developments include the internalization of its marketing, sales and logistics capabilities through recently completed acquisitions, additions of second shifts at both of its operating sawmills in 2Q 2011, reconfiguration of its FSJ sawmill in late December and an upcoming capital project at its Mackenzie Site II facility. Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing.