VANCOUVER, British Columbia, May 01, 2019 -- Western Forest Products Inc. (TSX: WEF) (“Western” or the “Company”) reported adjusted EBITDA of $18.1 million in the first quarter of 2019.
Results were impacted by challenging markets and difficult operating conditions which led to higher operating costs. Prolonged winter weather delayed typical spring lumber demand and led to operational downtime in both our mills and timberlands. In response, we leveraged our flexible operating platform, scaling back commodity production to match market demand and delivered an improved specialty sales mix to partly mitigate a weaker pricing environment.
First Quarter Highlights
- Completed the acquisition of the assets of Columbia Vista Corporation in Vancouver, Washington
- Completed the sale of 7% interest in the Port Alberni Forest Operation to the Huu-ay-aht First Nations
- Substantially completed building and equipment upgrades at Arlington
- Accelerated wholesale lumber activity, more than doubling purchase volume
- Returned $8.6 million to shareholders via regular, quarterly dividend
- Completed $7.4 million of share repurchases, cancelling 3.9 million common shares
Western’s adjusted EBITDA result of $18.1 million in the first quarter of 2019 compared to adjusted EBITDA of $43.0 million in the first quarter of 2018, and $18.0 million reported in the fourth quarter of 2018. Operating income prior to restructuring and other income was $5.7 million in the first quarter of 2019, compared to $32.6 million in first quarter of 2018, and $7.7 million reported in the fourth quarter of 2018.
Net income of $1.9 million ($nil per diluted share) was reported for the first quarter of 2019, as compared to $21.7 million ($0.05 per diluted share) for the first quarter of 2018 and $5.3 million ($0.02 per diluted share) in the fourth quarter of 2018.
Source : Western Forest Products