The following is a summary of the GreenFirst Forest Products Inc. (ICLTF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• GreenFirst Forest Products Inc. reported a significant recovery in duties, positively impacting net earnings with a recovery of approximately US$14.2 million or C$19.2 million, plus accrued interest of US$2.3 million or C$3.1 million.

• The company achieved a net income from continuing operations of $14.8 million for Q3 2024.

• Adjusted EBITDA from continuing operations for Q3 2024 was positive $15.9 million, showing a significant turnaround from the negative $6.1 million in Q2 2024.

• Net sales in Q3 2024 were reported at $70.8 million, showing a slight increase from the $69.6 million in Q2 2024, mainly due to higher volumes despite lower prices.

Business Progress:

• GreenFirst Forest Products completed the spin-out of Kap Paper, making it a standalone operation, clarifying the company structure.

• Announced a strategic CapEx plan aiming to grow annual capacity by 20% and reduce costs by approximately 10%, further aiming to lower the EBITDA breakeven point by about 15% after completion of these projects across four sawmills.

• Despite challenging market conditions, the company continues to see improvements in production efficiency and has reduced SG&A costs.

Opportunities:

• With the lower duty rates and favorable lumber industry conditions, GreenFirst is well-positioned to capitalize on these developments.

• The strategic CapEx initiatives planned during the market's off-cycle are expected to boost long-term profitability when market conditions improve.

Risks:

• The company faces ongoing market pressures from reduced demand and oversupply, impacting lumber pricing.

• Increased mortgage rates have continued to impact housing affordability, pressuring the lumber market demand.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.