Total debt reduced by $10.4 million and managed working capital declined by $19.2 million from Q3 2020 Q4 2020 Sales total $31.3 million; Premium alloy sales represent 19.1% of total Q4 salesQ4 2020 Net Loss of $7.3 million, or $0.83 per diluted share; Net loss is $4.6 million, or $0.52 per diluted share, excluding $3.8 million (pre-tax) of fixed cost absorption charges, a $0.3 million (pre-tax) loss on the sale of excess scrap and $0.7 million (pre-tax) gain on insurance proceedsEBITDA is a loss of $3.9 million in Q4 2020; Adjusted EBITDA is a loss of $0.2 million Quarter-end Backlog of $48.0 million versus $54.8 million at end of Q3 2020 BRIDGEVILLE, Pa., Jan. 27, 2021 (GLOBE NEWSWIRE) — Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) today reported net sales for the fourth quarter of 2020 of $31.3 million, a decrease of 16.3% from $37.4 million in the third quarter of 2020, and 43.2% lower than $55.2 million in the fourth quarter of 2019. Sales of premium alloys in the fourth quarter of 2020 were $6.0 million, or 19.1% of sales, compared with $9.2 million, or 24.5% of sales, in the third quarter of 2020, and $7.4 million, or 13.4% of sales, in the fourth quarter of 2019. Chairman, President and CEO Dennis Oates commented: “The fourth quarter was a challenging quarter as expected, and we continued to operate at low activity levels, which negatively impacted profitability. Our focus on liquidity continued, with positive results, as we achieved our cash targets and reduced debt by more than $10 million. While our revenues were down from the third quarter, our bookings activity improved. “Despite the challenging environment, we continue to see positive results within areas of our control, including increased efficiency of our operations as well as our quality programs. These favorable activities will allow for increased facility capacity and provide benefit as volumes increase. Most importantly, our safety performance, as measured by our OSHA recordable rate, marked a record low in 2020. “The pandemic continued to limit air travel worldwide and airlines reduced new plane orders, ultimately depressing aerospace product demand. We did see a bright spot with the return to service of the Boeing 737-MAX, which should begin to benefit new aircraft production into 2022 and 2023. Within the oil and gas markets, customers remain reluctant to place orders even with the rise in oil prices and rig counts. “Demand in the Heavy Equipment market was strong in the fourth quarter, especially for our products used in auto production and metals fabrication. Plate bookings have also remained strong. Growth in our General Industrial end market was especially strong in the quarter, led by semiconductor demand. In fact, sales to that end market for the quarter were at a near record level, and that strength is expected to continue in the coming months. “We saw positive signs in our order entry in the fourth quarter, which has increased each quarter from its 2020 low point in the second quarter. Cancellations further slowed and were at their lowest level in 2020. Fourth quarter premium alloy bookings also improved and were at the highest levels since the 2020 first quarter, with ongoing demand for defense and specialty applications. “Fourth quarter margins continued to be negatively impacted by lower activity levels and included fixed cost absorption direct charges. Margins were also negatively impacted by a $0.3 million loss on the sale of excess scrap, although that generated cash receipts of $0.7 million. Product mix was less favorable in the quarter due to lower shipments of premium alloys. “Our continued focus on working capital reduction in the fourth quarter resulted in continued reductions in inventory and debt levels. Both inventory and debt further declined from the third quarter, with inventory reduced by $9.6 million, and debt reduced by $10.4 million. For the full year, inventory has been reduced by $36.0 million and total debt is down $24.2 million, excluding PPP funds. We also tightly controlled our fourth quarter capital spend, limiting expenditures to $0.7 million. “Looking forward in 2021, we continue to expect measured improvement in activity levels as we move through the year, starting slowly in the first quarter. We will be focused on our strategic growth initiatives, which include strategic capital investment in our premium alloy production assets, including adding a vacuum arc remelt furnace and an 18-ton crucible to expand our capabilities and reduce costs.” Mr. Oates concluded: “Once again I want to commend our team for their efforts and the results they achieved during a prolonged period of difficult challenges. With the support of our customers and our commitment to producing the critical products required by our markets, we are fully focused on making tangible progress in 2021.” COVID-19 Response Summary Each of the Company’s facilities is an essential operation and continues to remain operational in accordance with the laws of the states in which the facilities are located.The Company continues to monitor the pandemic’s impact on the markets the Company serves, including the aerospace and oil & gas markets. The Company’s sales to the aerospace market have declined due to the reduction in air travel caused by the COVID-19 pandemic, as well as a sharp decline in aftermarket sales due to the significant reduction in air travel. The Company also has experienced extreme pressure in demand from the oil & gas market.On April 15, 2020, the Company entered into a $10.0 million term note pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act. The Company applied for full forgiveness of the PPP term note in the 2020 third quarter, and the PPP loan forgiveness process is currently underway.While the Company expects the effects of the pandemic and the related responses to continue to negatively impact its results of operations, cash flows and financial position, the uncertainty over the duration and severity of the economic and operational impacts of COVID-19 means the Company cannot reasonably estimate the related future impacts at this time.The Company continues to adapt its operations due to lower activity levels. As a result, the Company’s measures to align its cost structure with current forecasted revenue and operating levels are ongoing. Quarterly and Full Year Results of Operations For full year 2020, net sales totaled $179.7 million, compared with $243.0 million in full year 2019. Premium alloy sales in 2020 were $35.2 million, or 19.6% of sales, compared with $37.6 million, or 15.5% of sales, in 2019. The Company’s gross margin for the fourth quarter of 2020 was a loss of $5.1 million, or (16.2%) of sales, compared with a loss of $4.4 million, or (11.8%) of sales, in the third quarter of 2020, and a gross margin of $5.9 million, or 10.6% of sales, in the fourth quarter of 2019. Fourth quarter gross margin included $3.8 million of fixed cost absorption charges incurred due to reduced production levels, and $0.3 million loss on excess scrap sales. Excluding these charges, fourth quarter 2020 gross margin was a loss of $1.0 million, or (3.1%) of sales. Selling, general and administrative expenses were $4.2 million, or 13.4% of sales, in the fourth quarter of 2020, compared with $4.2 million, or 11.1% of sales, in the third quarter of 2020, and $5.3 million, or 9.5% of sales, in the fourth quarter of 2019. The net loss for the fourth quarter of 2020 was $7.3 million, or $0.83 per diluted share, compared with a net loss of $7.0 million, or $0.79 per diluted share, in the third quarter of 2020, and net income of $0.2 million, or $0.02 per diluted share, in the fourth quarter of 2019. The fourth quarter 2020 net loss, excluding $3.8 million (pre-tax) of fixed cost absorption charges, a $0.3 million (pre-tax) excess scrap sale loss, and gains of $0.7 million (pre-tax) from insurance proceeds, totaled $4.6 million, or $0.52 per diluted share. For full year 2020, the net loss was $19.0 million, or $2.16 per diluted share, compared with net income of $4.3 million, or $0.48 per diluted share, for 2019. Full year 2020 net loss, excluding $8.3 million (pre-tax) of fixed cost absorption charges, $0.7 million (pre-tax) of losses on excess scrap sales, $0.6 million (pre-tax) of employee severance costs and $1.0 million (pre-tax) of gains on insurance proceeds, totaled $12.4 million, or $1.40 per diluted share. The Company’s EBITDA for the fourth quarter of 2020 was a loss of $3.9 million, compared with a loss of $3.6 million in the third quarter of 2020, and positive EBITDA of $5.5 million in the fourth quarter of 2019. Fourth quarter 2020 adjusted EBITDA, excluding the fixed cost absorption charges, excess scrap sale losses, and insurance gain, was a loss of $0.2 million. Managed working capital was $114.1 million at December 31, 2020, compared with $133.3 million at September 30, 2020, and $141.3 million at the end of the fourth quarter of 2019. The 14.4% sequential decrease in managed working capital compared to the 2020 third quarter was due mainly to reduced inventory and accounts receivable levels. Inventory totaled $111.4 million at the end of the fourth quarter of 2020, a decrease of $9.6 million, or 7.9%, from $120.9 million at the end of the third quarter of 2020. Inventories have been reduced by $36.0 million, or 24.4%, since year-end 2019. Backlog (before surcharges) at December 31, 2020 was $48.0 million, compared with $54.8 million at September 30, 2020, and $119.1 million at the end of the 2019 fourth quarter. The Company’s total debt at December 31, 2020 was $50.2 million, a decrease of $10.4 million, or 17.1%, from September 30, 2020, and a decrease of $14.2 million, or 22.0%, from the end of 2019. Total debt at December 31, 2020 includes a $10.0 million term note, issued on April 15, 2020, pursuant to PPP. The Company has applied for full PPP loan forgiveness, and the forgiveness process is currently underway. Capital expenditures for the fourth quarter of 2020 totaled $0.7 million, compared with $1.3 million for the third quarter of 2020, and $4.0 million in the fourth quarter of 2019. Full year 2020 capital expenditures totaled $9.2 million. The Company expects capital expenditures in 2021 to approximate $11.0 million to support its strategic growth initiatives. Conference Call and Webcast The Company has scheduled a conference call for today, January 27th, at 10:00 a.m. (Eastern) to discuss fourth quarter 2020 results. Those wishing to listen to the live conference call via telephone should dial 706-679-0668, passcode 9091458. A simultaneous webcast will be available on the Company’s website at www.univstainless.com, and thereafter archived on the website through the end of the first quarter of 2021. About Universal Stainless & Alloy Products, Inc. Universal Stainless & Alloy Products, Inc., established in 1994 and headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company’s products are used in a variety of industries, including aerospace, power generation, oil and gas, and heavy equipment manufacturing. More information is available at www.univstainless.com. Forward-Looking Information Safe Harbor Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, among others, the Company’s ability to maintain its relationships with its significant customers and market segments; the Company’s response to competitive factors in its industry that may adversely affect the market for finished products manufactured by the Company or its customers; uncertainty regarding the progress of the return to service of the Boeing 737 MAX aircraft; the Company’s ability to compete successfully with domestic and foreign producers of specialty steel products and products fashioned from alternative materials; changes in overall demand for the Company’s products and the prices at which the Company is able to sell its products in the aerospace industry, from which a substantial amount of our sales is derived; the Company’s ability to develop, commercialize, market and sell new applications and new products; the receipt, pricing and timing of future customer orders; the impact of changes in the Company’s product mix on the Company’s profitability; the Company’s ability to maintain the availability of raw materials and operating supplies with acceptable pricing; the availability and pricing of electricity, natural gas and other sources of energy that the Company needs for the manufacturing of its products; risks related to property, plant and equipment, including the Company’s reliance on the continuing operation of critical manufacturing equipment; the Company’s success in timely concluding collective bargaining agreements and avoiding strikes or work stoppages; the Company’s ability to attract and retain key personnel; the Company’s ongoing requirement for continued compliance with laws and regulations, including applicable safety and environmental regulations; the ultimate outcome of the Company’s current and future litigation matters; the Company’s ability to meet its debt service requirements and to comply with applicable financial covenants; the ultimate outcome of the Company’s PPP loan forgiveness application; risks associated with conducting business with suppliers and customers in foreign countries; public health issues, including COVID-19 and its uncertain impact on our facilities and operations and our customers and suppliers and the effectiveness of the Company’s actions taken in response to these risks; risks related to acquisitions that the Company may make; the Company’s ability to protect its information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network security breaches; the impact on the Company’s effective tax rates from changes in tax rules, regulations and interpretations in the United States and other countries where it does business; and the impact of various economic, credit and market risk uncertainties. Many of these factors are not within the Company’s control and involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from any future performance suggested herein. Any unfavorable change in the foregoing or other factors could have a material adverse effect on the Company’s business, financial condition and results of operations. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company’s control. Certain of these risks and other risks are described in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the subsequent Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, copies of which are available from the SEC or may be obtained upon request from the Company. Non-GAAP Financial Measures This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These measures include earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA. We include these measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings (loss), is a relevant indicator of trends relating to cash generating activity of our operations. Adjusted EBITDA excludes the effect of share-based compensation expense and noted special items such as impairments and costs or income related to special events such as periods of low activity or insurance claims. We believe that excluding these costs provides a consistent comparison of the cash generating activity of our operations. We believe that EBITDA and Adjusted EBITDA are useful to investors as they facilitate a comparison of our operating performance to other companies who also use EBITDA and Adjusted EBITDA as supplemental operating measures. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measures. These non-GAAP measures may not be entirely comparable to similarly titled measures used by other companies due to potential differences among calculation methodologies. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP is included in the tables that follow. [TABLES FOLLOW]UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.FINANCIAL HIGHLIGHTS(Dollars in Thousands, Except Per Share Information)(Unaudited) CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Total net sales 31,324 55,171 179,731 243,007 Cost of products sold 36,399 49,317 182,387 215,369 Gross margin (5,075) 5,854 (2,656) 27,638 Selling, general and administrative expenses 4,203 5,252 19,752 20,347 Operating (loss) income (9,278) 602 (22,408) 7,291 Interest expense 552 956 2,784 3,765 Deferred financing amortization 56 56 225 227 Other (income), net (730) (53) (1,123) (474) (Loss) income before income taxes (9,156) (357) (24,294) 3,773 (Benefit) from income taxes (1,851) (557) (5,247) (502) Net (loss) income $(7,305) $200 $(19,047) $4,275 Net (loss) income per common share – Basic $(0.83) $0.02 $(2.16) $0.49 Net (loss) income per common share – Diluted $(0.83) $0.02 $(2.16) $0.48 Weighted average shares of common stock outstanding Basic 8,834,146 8,788,380 8,818,974 8,778,753 Diluted 8,834,146 8,867,040 8,818,974 8,873,719 MARKET SEGMENT INFORMATION Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Service centers $22,245 $36,331 $126,122 $166,327 Original equipment manufacturers 4,159 5,413 20,783 24,731 Rerollers 2,316 7,220 15,928 27,236 Forgers 2,217 5,036 14,244 20,444 Conversion services and other sales 387 1,171 2,654 4,269 Total net sales $31,324 $55,171 $179,731 $243,007 Tons shipped 5,669 9,805 30,821 41,462 MELT TYPE INFORMATION Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Specialty alloys $24,969 $46,609 $141,838 $201,120 Premium alloys * 5,968 7,391 35,239 37,618 Conversion services and other sales 387 1,171 2,654 4,269 Total net sales $31,324 $55,171 $179,731 $243,007 END MARKET INFORMATION ** Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Aerospace $17,214 $37,627 $121,900 $170,445 Power generation 956 2,942 6,879 11,530 Oil & gas 2,287 6,256 13,065 25,023 Heavy equipment 6,036 4,752 22,400 22,725 General industrial, conversion services and other sales 4,831 3,594 15,487 13,284 Total net sales $31,324 $55,171 $179,731 $243,007 * Premium alloys represent all vacuum induction melted (VIM) products. ** The majority of our products are sold to service centers rather than the ultimate end market customer. The end market information in this press release is our estimate based upon our knowledge of our customers and the grade of material sold to them, which they will in-turn sell to the ultimate end market customer. CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2020 2019 Assets Cash $164 $170 Accounts receivable, net 18,101 35,595 Inventory, net 111,380 147,402 Other current assets 7,471 8,300 Total current assets 137,116 191,467 Property, plant and equipment, net 164,983 176,061 Other long-term assets 947 871 Total assets $303,046 $368,399 Liabilities and Stockholders’ Equity Accounts payable $12,632 $40,912 Accrued employment costs 1,826 4,449 Current portion of long-term debt 16,713 3,934 Other current liabilities 2,722 830 Total current liabilities 33,893 50,125 Long-term debt, net 33,471 60,411 Deferred income taxes 5,725 10,962 Other long-term liabilities, net 4,277 3,765 Total liabilities 77,366 125,263 Stockholders’ equity 225,680 243,136 Total liabilities and stockholders’ equity $303,046 $368,399 CONSOLIDATED STATEMENTS OF CASH FLOW Year Ended December 31, 2020 2019 Operating activities: Net (loss) income $(19,047) $4,275 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 19,449 19,133 Deferred income tax (5,231) (517)Share-based compensation expense 1,455 1,390 Changes in assets and liabilities: Accounts receivable, net 17,494 (2,977)Inventory, net 34,326 (14,965)Accounts payable (25,282) (1,412)Accrued employment costs (1,983) (3,490)Income taxes 243 84 Other, net 2,387 (5,930) Net cash provided by (used in) operating activities 23,811 (4,409) Investing activity: Capital expenditures (9,157) (17,354)Net cash used in investing activity (9,157) (17,354) Financing activities: Borrowings under revolving credit facility 115,876 174,907 Payments on revolving credit facility (136,877) (153,632)Proceeds from Paycheck Protection Program Note 10,000 – Payments on term loan facility, capital leases, and notes (3,809) (3,904)Issuance of common stock under share-based plans 150 471 Net cash (used in) provided by financing activities (14,660) 17,842 Net increase in cash and restricted cash (6) (3,921)Cash and restricted cash at beginning of period 170 4,091 Cash and restricted cash at end of period $164 $170 RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA Three Months ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net (loss) income $(7,305) $200 $(19,047) $4,275 Interest expense 552 956 2,784 3,765 Benefit from income taxes (1,851) (557) (5,247) (502)Depreciation and amortization 4,728 4,898 19,449 19,133 EBITDA (3,876) 5,497 (2,061) 26,671 Share-based compensation expense 326 290 1,455 1,390 Loss on sale of excess scrap 300 – 654 – Fixed cost absorption direct charge 3,819 – 8,284 – Employee severance costs – – 620 – Insurance-related (benefit) expense (740) – (1,047) – Adjusted EBITDA $(171) $5,787 $7,905 $28,061 CONTACTS:Dennis M. OatesChristopher T. ScanlonJune Filingeri Chairman,VP Finance, CFOPresident President and CEOand TreasurerComm-Partners LLC (412) 257-7609(412) 257-7662(203) 972-0186
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.
Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.
The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.
“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.
“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”
Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.
The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.
The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.
Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.
More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.
Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.
“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.
Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.
“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.
Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.
Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.
Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”
“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.
This report by The Canadian Press was first published Sept. 18, 2024.
