The following is a summary of the GreenFirst Forest Products (ICLTF) Q1 2024 Earnings Call Transcript:
Financial Performance:
GreenFirst Forest Products reported a net loss of $13.4 million in Q1, including a $4.9 million deferred tax expense.
Adjusted EBITDA for Q1 was negative $3.5 million, showing slight improvement compared to the negative $18 million in Q4 2023.
Lumber sales for the quarter were reported at $69 million, while paper segment sales were down to $24 million from $34 million from Q4 2023.
Cost of sales in the lumber segment came in at $62 million.
Business Progress:
Despite disruptions in the paper segment leading to losses, the company set a Q1 2024 record by breaking 19 production records at its mill plants.
GreenFirst has different non-CapEx initiatives in place expected to bring savings of approximately $14 million compared to 2023.
The company aims to manage liquidity in the volatile lumber market through tight inventory management at the mill level.
They have planned to sell noncore assets, including Pena Island and other lands, and are on track to reach the targeted overhead cost for SG&A of $40 per thousand foot, board measure.
GreenFirst Forest Products plans to unveil a new strategic plan focusing on growing capacity in Ontario with strategic capital projects during the Q2 earnings call.
The company has shown some positive safety record performance and is engaging with governments for support.
They are exploring options of duty monetization to release liquidity while striving to control costs and mitigate negative contribution from the paper mill.
More details: GREENFIRST FOREST PRODUCTS INC IR
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