Western Forest Products Inc. reported negative adjusted EBITDA of $17.4 million in the 1Q 2020. Results were impacted by strike action that concluded in mid-February at the majority of its BC-based operations, a graduated return to work through the second half of the quarter, weak North American markets, and the novel Coronavirus pandemic (“COVID-19”). The company mitigated losses arising from labour disruptions by selling available inventory and minimizing certain expenditures.
Western curtailed production at its manufacturing operations for one-week in March to implement enhanced health and safety protocols and re-evaluate market conditions arising from COVID-19. In accordance with directions from provincial and federal authorities, the company resumed operations to continue to service customers and provide support for thousands of industry jobs.
Net loss of $21 million ($0.06 net loss per diluted share) was reported for the 1Q 2020, as compared to net income of $1.9 million ($nil per diluted share) for the 1Q 2019 and net loss of $29.2 million ($0.09 net loss per diluted share) in the 4Q 2019.
Western’s negative adjusted EBITDA of $17.4 million compared to adjusted EBITDA of $18.1 million in the 1Q 2019, and negative $18.1 million reported in the 4Q 2019. Operating loss prior to restructuring and other items was $28.4 million, compared to $5.7 million in first quarter of 2019, and $29.6 million loss reported in the 4Q 2019.
Western Forest Products Inc. is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.
