February 12, 2019 – Vancouver, British Columbia – Western Forest Products Inc. (TSX: WEF) (“Western” or the “Company”) reported adjusted EBITDA of $18.0 million in the fourth quarter of 2018.
Higher specialty lumber prices and increased lumber shipments in the fourth quarter of 2018 were offset by an incremental $10.0 million of US export lumber duty expense, an added $5.9 million of stumpage costs and the impacts of significantly lower commodity lumber prices.
Fourth Quarter Highlights
- Increased lumber production and shipments by 9% over the fourth quarter of last year
- Reached an agreement to sell a 7% interest in the Port Alberni Forest Operation to the Huu-ay-aht First Nations for $7.2 million, subject to closing conditions
- Announced the acquisition of the assets of Columbia Vista Corporation in Vancouver, Washington
- Accelerated capital invested to $31.0 million, adding $4.5 million to the Arlington, Washington facility
- Completed $9.1 million of share repurchases, cancelling 4.9 million common shares
- Returned $8.7 million to shareholders via regular, quarterly dividend
Western’s adjusted EBITDA result in the fourth quarter of 2018 compared to adjusted EBITDA of $38.9 million in the fourth quarter of 2017, and $32.3 million reported in the third quarter of 2018. Operating income prior to restructuring and other income was $7.7 million in the fourth quarter of 2018, compared to $30.3 million in fourth quarter of 2017, and $23.4 million reported in the third quarter of 2018.
Net income of $5.3 million ($0.02 per diluted share) was reported for the fourth quarter of 2018, as compared to $19.0 million ($0.05 per diluted share) for the fourth quarter of 2017 and $15.1 million ($0.04 per diluted share) in the third quarter of 2018. Western recorded net income of $69.2 million ($0.18 per diluted share) for the year ended December 31, 2018, as compared to $74.4 million ($0.19 per diluted share) in 2017.
Source: Western Forest Products