GreenFirst Reports Financial Results for the First Quarter of 2023
GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) today announced results for the first quarter ended April 1, 2023. The Company’s interim financial statements (“Financial Statements”) and related Management Discussion and Analysis (“MD&A”) for the first quarter ended April 1, 2023 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR at www.sedar.com. All amounts are in thousands of Canadian dollars unless indicated otherwise.
First Quarter of 2023 Highlights
*First quarter 2023 (“Q1 2023”) net loss from continuing operations was $20.2 million or a $0.11 loss per share (diluted), compared to net loss of $25.9 million or $0.15 loss per share (diluted) in the fourth quarter of 2022 (“Q4 2022”) on the same basis. Lumber prices dropped, reflecting economic headwinds and lower demand in Q1 2023, with an average selling price of $605/mfbm compared to $644/mfbm in Q4 2022. The Q1 2023 valuation provision for lumber and logs inventory was increased to $11.9 million from $8.7 million at the end of Q4 2022.
*Sold its two Quebec mills for gross proceeds of $94.1 million, subject to working capital adjustments, at a $3.5 million loss on disposal.
*Reducing overheads and operating costs while increasing production efficiencies.
*Signed a non-binding letter of intent to sell approximately 30 of 118 acres of the land in Kenora.
*The Company has significantly deleveraged its balance sheet by reducing its outstanding debt and is no longer subject to financial covenant ratios.
“GreenFirst is now focused on optimizing its core assets in Ontario, supported by a streamlined, cost-effective operating platform. We have strengthened our balance sheet and our recent efforts to improve operational efficiencies have begun to yield positive results”, said Paul Rivett, interim CEO and executive Chairman of GreenFirst. “In August 2023, we expect the duty rates to drop from 20.23% to 8.24%, which will increase profitability”, added Paul Rivett.
details at: https://greenfirst.ca/2023/05/greenfirst-reports-financial-results-for-the-first-quarter-of-2023/