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WFP delivers record results in Q3 report
November 4, 2021 By Western Forest Products
Western Forest Products Inc. reported adjusted EBITDA of $66.3 million in the third quarter of 2021. Western leveraged its flexible manufacturing platform to capitalize on improving specialty lumber markets and partially offset the impacts of North American commodity lumber price declines, difficult log harvest conditions and temporary logistics delays.
Net income in the third quarter of 2021 was $42.2 million ($0.12 per diluted share), as compared to net income of $11.5 million ($0.03 per diluted share) for the third quarter of 2020 and net income of $78.3 million ($0.21 per diluted share) in the second quarter of 2021.
Third quarter highlights:
- Delivered record third quarter adjusted EBITDA of $66.3 million and net income of $42.2 million
- Realized average lumber price of $1,553 per thousand board feet, despite a significant decline in commodity lumber prices
- Successfully transitioned to a sustainability-linked credit facility and extended the maturity to 2025
- Completed the sale of the Somass sawmill assets for $5.3 million
- Returned $33.8 million to shareholders via dividends and share repurchases
- Grew liquidity to $384.4 million to support growth strategy and balanced capital allocation
Western’s third quarter adjusted EBITDA was $66.3 million, as compared to adjusted EBITDA of $33.7 million in the third quarter of 2020 and $120.4 million reported in the second quarter of 2021. Operating income prior to restructuring and other items was $53.5 million, compared to income of $19.0 million in the third quarter of 2020, and $105.7 million of income reported in the second quarter of 2021.
“In the third quarter we successfully pivoted lumber shipments to export markets, mitigating the impacts of North American commodity pricing volatility on our business”, said Don Demens, president and CEO. “I am pleased that our flexible operating platform and specialty product focus continues to deliver stability in revenue and earnings.”
Read the full Q3 report here.
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