GreenFirst Reviews Monetary Outcomes for the Fourth Quarter of 2024

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TORONTO — GreenFirst Forest Merchandise Inc. (TSX: GFP) (“GreenFirst” or the “Firm”) introduced outcomes for the 12 months ended December 31, 2024. Firm’s audited monetary statements (“Monetary Statements“) and associated Administration’s Dialogue and Evaluation (“MD&A“) for the 12 months ended December 31, 2024 can be found on GreenFirst’s web site at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.

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Highlights

• This fall 2024 web loss from persevering with operations was $26.6 million or $1.39 loss per share (diluted), in comparison with web revenue of $14.8 million or $0.83 earnings per share (diluted) in Q3 2024. Adjusted EBITDA from persevering with operations for This fall 2024 was detrimental $0.9 million in comparison with detrimental $15.7 million in Q3 2024.
• Common realized lumber costs of $680/mfbm for This fall 2024 had been larger than the $606/mfbm pricing realized in Q3 2024. Benchmark costs noticed will increase in the course of the quarter because of a rise within the duties fee late in Q3 from 8.05% to 14.40% and up to date fee cuts by the US Federal Reserve and Financial institution of Canada signaling a reversal in financial coverage. Subsequent to This fall 2024 pricing continued to maneuver favorably because the U.S. administration introduced the potential imposition of tariffs on Canadian imports.
• On October 17, 2024, the Firm accomplished a substantive consolidation of its excellent frequent shares on the idea of 1 post-consolidation Frequent Share for every ten pre-consolidation frequent shares leading to a discount of approx. 160 million pre-consolidation shares.
• On November 4, 2024 the Firm closed the Plan of Association that resulted within the distribution of the excellent shares of Kap Company to the GreenFirst shareholders on the idea of 1 frequent share of Kap Company for every ten frequent shares of GreenFirst held. The spin-out of Kap Company is a part of the pure development of the decentralization and deconsolidation of the paper mill that was initially disclosed by GreenFirst within the Fall of 2023.
• On December 13, 2024, the Firm closed a Rights Providing ensuing within the issuance of 4,880,340 subscriptions receipts inclusive of the frequent shares issued to the Standby Purchasers for gross proceeds of $24.8 million, web of a $1.0 million discount in money funds obtained from the Standby Purchasers as a charge below the Standby Settlement for a portion of the backstop charge. The Firm incurred extra share issuances prices of $0.1 million.

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“We’re happy to see the outcomes of our steady enchancment efforts, with elevated manufacturing ranges and a give attention to enhancing our price construction from each a producing and SG&A perspective. Regardless of larger manufacturing, gross sales throughout This fall had been impacted negatively by weather-related disruptions that slowed our provide chain. Whereas market situations have proven some indicators of enchancment, with pricing rising from a median of $606 in Q3 to $680 in This fall, we proceed to navigate the exterior challenges going through our enterprise, together with potential tariffs on exports to the US,” stated Joel Fournier, GreenFirst’s CEO. “As well as, tasks together with the sale of non-core property, comparable to duties and Kenora land, mixed with a rights providing and the extension of the revolving portion of our credit score facility, had been finalized in This fall. These actions have considerably improved our liquidity and positioned us for future development.”

Monetary Highlights

The next chosen monetary info is from the Firm’s monetary statements and MD&A:

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Web gross sales had been $69.9 million in This fall 2024, a lower of roughly 1% in comparison with Q3 2024 ensuing from a 12% enhance within the common realized worth of lumber which averaged in This fall 2024 at $680 per board ft vs $606 per board ft within the third quarter of 2024. The strengthening of the USD vs the CDN greenback represented $14 of the $74 greenback per board ft enhance. Quantity of lumber offered was down by an equal 12% primarily as resulting from climate situations impacting our provide chain in Northern Ontario.

Price of gross sales had been $68.5 million, a lower of roughly 2% in comparison with Q3 2024. The lower in price of gross sales within the fourth quarter was primarily resulting from decrease volumes shipped.

Different Bills

Reported responsibility expense of $6.2 million in This fall 2024 represents money responsibility deposits at 14.40% representing the mixed responsibility fee the Firm has been paying beginning September 19, 2024. Compared to Q3 2024, the Firm began the quarter at a fee of 8.05% and transitioned the 14.40 as at September 19, 2024. As well as throughout Q3 2024, because of the US DOC’s Fifth Administrative Evaluation with respect to imports of softwood lumber merchandise from Canada for 2022. The Firm recorded a receivable because it stands to profit from an approximate US$14.2 million (CAD$19.2 million) restoration on duties paid in 2022, plus accrued curiosity of US$2.3 million (CAD$3.1 million) as recorded in Q3 2023.

SG&A bills of $2.8 million within the fourth quarter of 2024 had been decrease in comparison with $3.5 million within the third quarter ended September 28, 2024 which is aligned with the Firm’s initiative to cut back its SG&A.

Liquidity and Borrowings

At December 31, 2024, the Firm had $27.8 million in money available and $39.3 million, much less $8.3 million for standby letters of credit score, of extra availability below its revolving portion of the credit score facility. As well as, the Firm additionally had entry to $11.3 million remaining below its tools financing portion of the credit score facility. The Firm had drawn down nil below its revolving portion of the credit score facility and $13.7 million (web of repayments) below its tools financing settlement as at December 31, 2024.

Outlook

The financial outlook for the lumber trade displays a mixture of challenges and alternatives. Total macroeconomic considerations are beginning to stabilize which can positively influence lumber demand and pricing. The North American housing market has began to indicate indicators of stabilization after earlier fluctuations. Mortgage charges stay akin to a 12 months in the past and there may be expectation that they could begin easing within the close to time period offering aid for some owners supporting some demand for brand new building, reworking and renovation tasks projected continued help for lumber demand. Lack of accessible housing stock, growing old of houses within the US and demographic pushed demand may positively influence lumber markets within the close to and long run.

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Decreased lumber demand and low stock upkeep proceed to drive provide aspect pressures within the short-term. Nonetheless, continued curtailment of lumber manufacturing within the Province of British Columbia, Quebec and another areas of North America may have some constructive help in lumber pricing.

Labour markets stay tight, which continues to influence price and sure disruptions to movement of manufacturing within the trade. Inflationary pressures in North America have additionally raised the price of many inputs required for our operations. Ongoing challenges with staffing and wooden provide may negatively influence corporations within the trade.

Steady enchancment in manufacturing and processing methods are serving to to enhance effectivity and cut back prices, which may improve competitiveness in the long run. Entry to capital to buy and set up tools that may drive operations strengthen competitiveness in the long run.

Growing give attention to sustainable practices is shaping the trade. Firms that put money into environmentally pleasant practices could acquire a aggressive edge, significantly as shoppers and regulators emphasize sustainability. To this impact, GreenFirst produces high quality lumber and paper merchandise in a protected and accountable method to guard our workers and the atmosphere, create long-term worth for our stakeholders, and contribute positively to our collective future. We consider the Firm’s renewable constructing supplies, which sequester carbon, are a pure answer within the struggle towards local weather change.

On February 1, 2025, the brand new U.S. administration issued an govt order directing america to impose new tariffs on imports from Canada, which got here into impact on March 4, 2025 and subsequently reversed on March 6, 2025. As well as, on March 1, 2025, the U.S. administration ordered a brand new commerce investigation that might impose additional tariffs of 25% particular to anti-dumping on imported lumber from Canada. The precise influence of those tariffs is unknown and indeterminable as it’s topic to various components together with the efficient date, period of such tariffs, adjustments within the quantity, scope and nature of the tariffs sooner or later, any countermeasures that the Canadian authorities could take, and any mitigating actions which will turn out to be accessible.

Reconciliation of Adjusted EBITDA

References to EBITDA on this doc are measures of earnings (loss) earlier than curiosity and finance prices, revenue taxes, depreciation and amortization, whereas references to Adjusted EBITDA replicate EBITDA plus different non-operating prices comparable to influence of valuation adjustments on the Firm’s investments, loss on sale of property and different non-operating losses. Administration believes that sure lenders, traders, and analysts use EBITDA and Adjusted EBITDA as a standard valuation measurement and to measure the Firm’s skill to service debt and meet different fee obligations. EBITDA and Adjusted EBITDA usually are not meant to exchange web earnings (loss), or different measures of monetary efficiency and liquidity reported in accordance with GAAP. For extra info on non-GAAP measures, please see the Firm’s MD&A.

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Earnings Convention Name

GreenFirst will host a convention name to evaluation the This fall 2024 monetary outcomes on Monday, March 17, 2025 at 9:00am (Japanese). The stay webcast of the earnings convention name will be accessed through net: http://momentum.adobeconnect.com/greenfirst2024/ and through telephone: (+1) 416 764 8658 or (+1) 888 886 7786. A replay of the webcast and presentation slides might be accessible on GreenFirst’s web site following the convention name.

About GreenFirst

GreenFirst Forest Merchandise is a forest-first enterprise, targeted on sustainable forest administration and lumber manufacturing. The Firm owns 4 sawmills positioned in wealthy wooden baskets proudly working over six million hectares of FSC® licensed public Ontario forest lands (FSC®-C167905). The Firm believes that accountable forest practices, coupled with the long-term inexperienced benefit of lumber, present GreenFirst with vital cyclical and secular benefits in constructing merchandise.

Ahead Wanting Data

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Sure info on this information launch constitutes forward-looking statements below relevant securities legal guidelines. Any statements which are contained on this information launch that aren’t statements of historic reality are forward-looking statements. Ahead trying statements are sometimes recognized by phrases comparable to “could”, “ought to”, “anticipate”, “anticipate”, “potential”, “consider”, “intend”, “estimate” or the detrimental of those phrases and comparable expressions. Ahead-looking statements are based mostly on sure assumptions and, whereas GreenFirst considers these assumptions to be cheap, based mostly on info at present accessible, they could show to be incorrect. As well as, forward-looking statements essentially contain identified and unknown dangers, together with these set out in GreenFirst’s public disclosure report filed below its profile on www.sedarplus.ca. Readers are additional cautioned to not place undue reliance on forward-looking statements as there will be no assurance that the plans, intentions or expectations upon which they’re positioned will happen. Such info, though thought-about cheap by administration on the time of preparation, could show to be incorrect and precise outcomes could differ materially from these anticipated. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion and replicate our expectations as of the date hereof, and thus are topic to alter thereafter. GreenFirst disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as required by legislation.

For extra info, please go to: www.greenfirst.ca

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Contacts

Investor Relations
(416) 775 2821

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