CORRECTED-Canada's Conifex Q4 revenue falls on lower shipment volumes

Overview

• Canada lumber and bioenergy producer's Q4 revenue drops 16% yr/yr, with lumber revenue falling 25% amid lower shipment volumes

• Q4 net loss widened as elevated duty and tariff rates weighed on operating results

• Company secured C$19 mln term loan after year-end to address liquidity challenges

Outlook

• Conifex expects medium-term lumber demand to benefit from favorable US housing fundamentals

• Company says near-term uncertainty persists due to trade measures and housing affordability challenges

• Conifex may adjust operating format in response to market and trade conditions

Result Drivers

• CURTAILMENTS AND REDUCED OPERATING RATES - Co said lower shipment volumes and production were due to curtailments and reduced operating rates in response to unfavorable market conditions and elevated duty and tariff rates

• HIGHER UNIT COSTS - Co said increased log and conversion costs, combined with lower production volumes, led to higher unit manufacturing costs

• INVENTORY WRITE-DOWN - Co recorded a C$1.8 mln non-cash inventory write-down in Q4

Company press release: ID:nGNX1M8MK0

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the forest & wood products peer group is "buy."

• Wall Street's median 12-month price target for Conifex Timber Inc is C$0.40, about 185.7% above its March 20 closing price of C$0.14

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.