GreenFirst Forest Products Inc. reported net income of $8.0 million ($0.04 per share) for 4Q 2021 and adjusted EBITDA of $18.4 million. For the year ended December 31, 2021, the Company recorded a net loss of $9.6 million ($0.12 per share) and adjusted EBITDA of $12.6 million.
The company reported net sales of $161.6 million during the 4th quarter of 2021 and net sales of $190.5 million for the fiscal year ended December 31, 2021.
The Company reported cost of sales of $131.2 million during the 4th quarter of 2021. Upon closing of the acquisition of the Rayonier asset, inventory was recorded at fair value, resulting in different inventory values from those that would have been recorded in accordance with the Company’s accounting policy. As of December 31, 2021, $0.8 million of inventory measured at fair value remains to be recognized in future periods in cost of sales.
The Company reported selling, general and administrative expenses of $5.0 million for the 4th quarter of 2021 and $8.4 million for the year ended December 31, 2021. These expenses were primarily related to personnel costs, costs related to transition services provided by Rayonier and costs incurred for the Kenora sawmill shutdown.
“We achieved profitability in the 4th quarter and successfully integrated the acquired operating plants. Cash flow permitting, we intend to make strategic capital investments with the goal of reducing production costs and increasing our production capacity,” said Rick Doman, CEO of GreenFirst. “We are also committed to being an employer of choice and to ensuring that each of our factories is an integral part of its community.
GreenFirst Forest Products is a forest-based company focused on sustainable forest management and timber production. The Company owns 7 sawmills and 1 paper mill in Ontario and Quebec, Canada.