During the 2Q 2020, Conifex Timber incurred a net loss from continuing operations of $2.7 million, or $0.05 per share, compared to a net loss from continuing operations of $8.2 million or $0.18 per share in the previous quarter and $1.1 million or $0.02 per share in the 2Q 2019.
2Q 2020 revenues totaled $10.8 million, a decrease of 65% from the prior quarter and a decrease of 73% from the 2Q 2019. The lower revenues were primarily attributable to the curtailment of its Mackenzie sawmill operations for most of the 2Q 2020.
Conifex Timber recorded operating losses of $1.4 million in the 2Q 2020, $6.8 million in the previous quarter and $11.7 million in the 2Q 2019.
Adjusted EBITDA was negative $1.1 million in the 2Q 2020, positive $0.5 million in the previous quarter and negative $9.1 million in the 2Q 2019. Adjusted EBITDA in the 2Q 2020 reflected the curtailment of the Mackenzie sawmill for most of the period, offset partially by steady and positive results from bioenergy operations.
“Even though the economic disruptions caused by the unprecedented global pandemic resulted in our core sawmill business being curtailed for 12 weeks in the quarter, we are pleased that our quarter end cash balance of $11.5 million was only $0.6 million lower than at the beginning of the quarter,” said Ken Shields, CEO. “With the recent surge in lumber prices and our July 6, 2020 sawmill re-start, we expect to achieve profitable operations during the closing six months of 2020.”