Western Forest Products Inc. (“Western”) reported negative adjusted EBITDA of $18.1 million in the 4Q 2019.
The company generated revenue of $80.1 million in the 4Q 2019, as compared to $284.8 million in the 4Q 2018, and $141.6 million in the 3Q 2019. The company partially mitigated the impacts of the strike by selling unencumbered lumber and log inventories during the 4Q 2019.
Net loss of $29.2 million ($0.09 net loss per diluted share) was reported for the 4Q 2019, as compared to net income of $5.3 million ($0.02 net income per diluted share) for the 4Q 2018 and net loss of $18.7 million ($0.05 net loss per diluted share) in the 3Q 2019.
Operating loss prior to restructuring and other items was $29.6 million in the 4Q 2019, compared to operating income prior to restructuring and other items of $7.7 million in 4Q 2018, and $24.2 million loss reported in the 3Q 2019. Western’s liquidity at the end of the 4Q 2019 was $136.9 million and net debt to capitalization ratio was approximately 18.8%.
“In the 4Q, we continued to focus on limiting the impact of the USW strike on our customers and our financial position by managing our debt levels,” said Don Demens, President and CEO. “With terms of a tentative collective agreement reached with the USW, we look forward to bringing people back to work following the completion of the ratification process.”
For the year ended December 31, 2019, Western generated annual revenue of $807.7 million, as compared to annual revenue of $1,196.7 million in 2018. Western reported negative adjusted EBITDA of $1.5 million as compared to $143.5 million in 2018.
Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.