Eacom released financials after the close...
They highlighted positive EBITDA and positive cashflows, but operating capacity was only at 40%.
At an extremely basic level, 40% operating capacity means higher fixed costs as a % of revenue will eat into bottom line profits. Accordingly, net income was slightly negative for the quarter.
A quick overview suggests that while the fundamental picture is improving, Eacom's not quite out of the woods yet. Lumber prices and production volumes will need to keep increasing to lead Eacom into sustained profitability.
Also, keep an eye on the CAD$ as it continues to climb vs. the USD$.
Lumber is priced in USD, so an increasing value of the CAD will eat into all lumber companies average selling price.
I'd like to get a comparison on Eacom's average production costs in comparison to some of the other lumber mill companies, but a little more digging will be required...
Have a good weekend & GLTA