Business
GreenFirst Reports Financial Results for the Third Quarter of 2024
TORONTO, ON / ACCESSWIRE / November 12, 2024 / GreenFirst Forest Products Inc. (TSX:GFP) ("Green...
About this update from Greenfirst Forest Products Inc
[{"type":"text","content":"GreenFirst Reports Financial Results for the Third Quarter of 2024TORONTO, ON / ACCESSWIRE / November 12, 2024 / GreenFirst Forest Products Inc. (TSX:GFP) (\"GreenFirst\" or the \"Company\") announced results for the third quarter ended September 28, 2024. The Company's interim financial statements (\"Financial Statements\") and related Management's Discussion and Analysis (\"MD&A\") for the third quarter ended September 28, 2024 are available on GreenFirst's website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.HighlightsQ3 2024 net income from continuing operations was $14.8 million or $0.08 per share (diluted), compared to net loss of $9.9 million or loss of $0.06 per share (diluted) in Q2 2024. Adjusted EBITDA for Q3 2024 was positive $15.7 million compared to negative $6.1 million in Q2 2024. Lumber had a negative contribution to Q3 2024 as a result of weak market conditions.US Department of Commerce's (\"US DOC\") Final Determination of its Fifth Administrative Review resulted in a final duty rate of 14.40%. The Company stands to benefit from an approximate US$14.2 million (CAD$19.2 million) recovery on duties paid in 2022, plus accrued interest of US$2.3 million (CAD$3.1 million) as recorded in Q3 2024. Additionally, the ongoing lower duty rate has positively impacted the Company's earnings and free cash flow since August 1, 2023. In August 2024 the Company's duties rate increased from 8.05% to 14.40%.Average realized lumber prices of $614/mfbm for Q3 2024 were also lower than the $637/mfbm pricing realized in Q2 2024. Benchmark prices continued to be under pressure at the start of Q3 2024 due to lower housing affordability and monetary policy, however towards the tail end of the quarter pricing started to move favorably as a result of recent rate cuts by the US Federal Reserve and Bank of Canada signaling a reversal in monetary policy. Subsequent to Q3 2024 pricing continued to trend upward significantly.The valuation provision for lumber and log inventory was increased to $4.2 million from $3.2 million at the end of Q2 2024, generating a $1.0 million charge to lumber cost of sales in Q3 2024.On July 17, 2024, the Company announced the appointment of Peter Ferrante as its new Chief Financial Officer.On August 9, 2024, the Company purchased a buy-out group annuity that transfers approximately $26.5 million of...