- First quarter 2022 ("Q1 2022") net earnings were
$34.0 million , or$0.18 per share (diluted), compared to$8.0 million , or$ 0.04 per share, in the fourth quarter of 2021 ("Q4 2021"), which was the Company's first full quarter operating its acquired forest-products assets - Q1 2022 Adjusted EBITDA was
$44.9 million (see, Reconciliation of Adjusted EBITDA), an improvement of 144% compared to the Adjusted EBITDA in Q4 2021 - Lumber pricing improved significantly in Q1 2022 and outlook continues to be strong for the remainder of the second quarter of 2022 and beyond, with continued volatility but above-historical levels expected
- Asset-backed revolving loan facility of
$65.0 million was undrawn at quarter end and has remained undrawn atMay 11, 2022 . Seasonal log inventory build up continued to be funded from strong operating cash flow - The Company plans to conclude its Transition Services Agreement with Rayonier Advanced Materials by end of
May 2022 - The
Government of Ontario has offered support to relocate theKenora sawmill, an opportunity we continue to work on. The Company is also moving some equipment to our otherOntario sawmills to improve production and recovery - Subsequent to Q1 2022, the Company made a voluntary repayment of
US$8.9 million on its outstanding term debt
"We are pleased to see the lumber markets showing strength in 2022, which helped us achieve strong results for our first quarter," said
On
The following selected financial information is derived from the Company's first quarter interim financial statements and MD&A:
For the quarter ended | 2022 | 2021 | 2021 | ||||
Net sales | |||||||
Forest products (1) | $ | 158,084 | $ | 142,981 | $ | - | |
Paper products | 14,684 | 18,570 | - | ||||
Total net sales | 172,768 | 161,551 | - | ||||
Operating earnings (loss) | 38,969 | 12,540 | (1,350) | ||||
Net earnings (loss) for the period | 34,043 | 7,953 | (1,554) | ||||
Basic earnings (loss) per share | 0.19 | 0.04 | (0.07) | ||||
Diluted earnings (loss) per share | 0.18 | 0.04 | (0.07) | ||||
Adjusted EBITDA (2) | 44,864 | 18,358 | (1,448) | ||||
March 26, | December 31, | ||||||
As at | 2022 | 2021 | |||||
Total assets | $ | 482,957 | $ | 415,937 | |||
Total liabilities | 219,380 | 186,778 | |||||
Total shareholders' equity | 263,577 | 229,159 | |||||
1 Includes net sales to external parties only. |
2 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Reconciliation of Adjusted EBITDA section below. |
The Company recorded net earnings of
The Company reported net sales of
The Company reported cost of sales of
The Company reported selling, general and administration expenses of
The Company's softwood lumber sales to US customers are subject to countervailing and anti-dumping duties as determined by the
Finance costs, which include interest and accretion on the Company's borrowings under the senior secured term credit facility, was
At
At
Entering spring 2022, rising interest rates in response to higher inflation represented a head wind to lumber demand. However, in the second half of
Moreover, we expect COVID-19 to remain a concern through the remainder of 2022, while disruptions to modes of transportation used by the industry may also continue to be a factor that tightens the supply of lumber to the North American market.
The combination of macro supply tightening and the risk of disruptions to lumber supply within
Lumber prices have a material impact on the operating earnings of the Company and in the first quarter of 2022, a US
Inflationary pressures in
The Company has capital losses carried forward of
References to EBITDA in this document are earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA are EBITDA plus other non-operating costs such as acquisition and transaction related costs and the impact of foreign exchange on the Company's long-term debt. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA to measure the Company's ability to service debt and meet other payment obligations, and as a common valuation measurement. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. They are not intended to replace earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. Please refer to the Company's MD&A for further information on non-GAAP measures.
For the quarter ended | 2022 | 2021 | 2021 | ||||
Net earnings (loss) for the period | $ | 34,043 | $ | 7,953 | $ | (1,554) | |
Adjustments: | |||||||
Finance costs, net | 3,621 | 4,529 | 106 | ||||
Income taxes | 2,806 | (2,031) | - | ||||
Depreciation and amortization | 5,895 | 5,835 | - | ||||
EBITDA | 46,365 | 16,286 | (1,448) | ||||
Foreign exchange on long-term debt | (1,501) | (18) | - | ||||
Acquisition and transaction related costs | - | 2,090 | - | ||||
Adjusted EBITDA | $ | 44,864 | $ | 18,358 | $ | (1,448) | |
GreenFirst will host a conference call to review first-quarter 2022 financial results on
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend", "estimate" or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst's public disclosure record filed under its profile on www.sedar.com. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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