Western Forest Products Inc. reported a net loss of $14.3 million in the fourth quarter of 2023, as compared to a net loss of $17.4 million in the third quarter of 2023, and net loss of $21.4 million in the fourth quarter of 2022.
Results in the fourth quarter of 2023 reflect lower realized pricing and shipment volumes on a stronger lumber sales mix, offset by lower stumpage rates as compared to the same period last year.
Adjusted EBITDA was negative $1.2 million in the fourth quarter of 2023, as compared to negative $11.6 million in the third quarter of 2023, and negative $11.9 million in the fourth quarter of 2022.
Operating loss prior to restructuring and other items was $14.4 million in the fourth quarter of 2023, as compared to operating losses of $25.8 million in the third quarter of 2023, and $23.6 million in the fourth quarter of 2022.
Despite the more challenging operating environment, highlights in 2023 included:
- Celebrated the one-year anniversary of the acquisition of the glulam business from Calvert Company, Inc., that continues to perform to expectations and generated EBITDA margins in excess of 20 per cent.
- Advanced strategic investments to support value-added manufacturing on the British Columbia Coast and grow our value-added wood products, all while continuing to improve Western’s long-term competitiveness. We completed the installation of a machine stress rated lumber grader at the Duke Point sawmill location to support increased production of higher value lumber. The continuous kiln at the Saltair sawmill is anticipated to commence commissioning in the first quarter of 2024.
- Announced a $35.9 million agreement to sell a 34 per cent interest in a new forestry limited partnership to four Vancouver Island First Nations, further demonstrating Western’s commitment to First Nation partnerships and meaningful reconciliation.
- Advanced joint and collaborative planning of forestry activities with First Nations in whose traditional territories we operate in B.C., building upon Western’s well-established forestry practices and in support of greater long-term clarity for the stewardship and management of the land base.
Senior leadership change
The company also announced that Stephen Williams will step down from his role as executive vice president and chief financial officer by the end of 2024.
Since joining Western in 2014, Steve has made significant contributions to our company’s financial governance and overall success in an ever-changing and dynamic forest sector landscape,” said Steven Hofer, president and CEO of the company, on behalf of himself and the board of directors of the company. “In his time at Western, Steve has played a critical role in our strategic transition to become a leading specialty wood products supplier and I want to personally thank him for his leadership over a tremendous 10-year career at Western.”
Western has commenced an executive search for a new Chief Financial Officer. Mr. Williams will remain in his role as Chief Financial Officer until his replacement is found, and thereafter be available until the end of 2026 in a limited advisory capacity to support a seamless transition process. See the full report here.
