Interfor Reports Q1''16 Results
Higher Commodity Lumber Prices and Volumes in Q1'16 vs. Q4'15
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/28/16 -- INTERFOR CORPORATION ("Interfor" or the "Company") (TSX: IFP) recorded Adjusted EBITDA(1) of $33.4 million on sales of $433.9 million in Q1''16 versus Adjusted EBITDA(1) of $35.8 million on sales of $411.4 million in Q4''15.
Adjusted net earnings(1) in Q1''16 were $2.6 million, or $0.04 per share, compared to $5.5 million, or $0.08 per share, in Q4''15. Net earnings were $0.8 million, or $0.01 per share, compared with net losses of $3.5 million, or $0.05 per share, in Q4''15.
Highlights for the quarter include:
(1) Refer to Non-GAAP Measures section
Production
Lumber production in Q1''16 was 618 million board feet versus 568 million board feet in Q4''15.
Production from the Company''s nine U.S. South sawmills totaled 265 million board feet, up 22 million board feet compared to Q4''15. In addition to the increase in operating days in Q1''16, the production at the Georgetown sawmill increased by 9 million board feet following the impact of severe weather events in Q4''15.
Production from Canadian operations totaled 210 million board feet in Q1''16, up 24 million board feet compared to Q4''15. Production increased most significantly at Castlegar, which produced an additional 12 million board feet as the sawmill resumed more normal operations following the start-up curve in Q4''15. In Q1''16, Interfor shipped approximately 105 million board feet of lumber to U.S. markets from its B.C. sawmills, which represents approximately 17% of Interfor''s total current quarterly production. The 12-month standstill period of the Softwood Lumber Agreement, which precludes trade action by the U.S., continues through October 11, 2016. Preliminary discussions on lumber trade between the Canadian and U.S. governments have been held, however uncertainty remains regarding resolution of the matter.
Production from Northwest operations totaled 143 million board feet in Q1''16, an increase of 4 million board feet over the preceding quarter driven by improved productivity at the Company''s three stud mills in the region.
Lumber Markets and Pricing
Beginning this quarter, Interfor changed its references to market benchmark prices for Western SPF and SYP from 2x4''s to the respective Composites. The change is due to 2x4 references being for a specific product, whereas the Composites include a mix of dimensions and grades that better reflect our product mix, particularly for Southern Yellow Pine.
The Western SPF Composite improved over the course of the first quarter of 2016 as dealers expanded inventories for the spring building season following a mild winter. The Western SPF Composite benchmark took a step down to US$251 per mfbm in January before rebounding to US$281 per mfbm in March. The SP Composite also improved during Q1''16, increasing to US$374 per mfbm in March compared to US$353 per mfbm in December 2015.
Interfor expects demand for lumber to continue to grow over the mid-term as the U.S. housing market recovers and market promotion efforts in North America and offshore take full effect.
Interfor''s strategy of maintaining a diversified portfolio of lumber operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle. Interfor will continue its disciplined approach to production, cost control, inventory management and capital spending. At the same time, Interfor will remain alert to growth opportunities to position the Company for long term success.
Balance Sheet
Net debt at March 31, 2016 was $428.1 million, or 37.8% of invested capital, representing an increase of $58.4 million from March 31, 2015 and a decrease of $24.2 million from December 31, 2015. A 6.3% strengthening of the Canadian Dollar against the U.S. Dollar contributed $29.5 million to the net debt reduction in Q1''16 as the majority of debt is denominated in U.S. Dollars.
Capital Resources
The following table summarizes Interfor''s credit facilities and availability as of March 31, 2016:
As of March 31, 2016, the Company had commitments for capital expenditures totaling $4.6 million, related to both maintenance and discretionary capital projects.
Interfor continues to maintain its disciplined focus on monitoring discretionary capital expenditures, optimizing inventory levels and matching production with offshore and domestic demand.
As at March 31, 2016, the Company had net working capital of $170.2 million and available capacity on operating and term facilities of $137.0 million. These resources, in addition to cash generated from operations, will be used to support working capital requirements, debt servicing commitments and capital expenditures. We believe that Interfor will have sufficient liquidity to fund operating and capital requirements for the foreseeable future.
Non-GAAP Measures
This MD&A makes reference to the following non-GAAP measures: Adjusted net earnings (loss), Adjusted net earnings (loss) per share, EBITDA, Adjusted EBITDA, Pre-tax return on total assets and Net debt to invested capital, which are used by the Company and certain investors to evaluate operating performance and financial position. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company''s unaudited interim consolidated financial statements prepared in accordance with IFRS:
See accompanying notes to consolidated financial statements
FORWARD-LOOKING STATEMENTS
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will", "should", "expects", "annualized" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor''s actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among other things: price volatility, competition, availability and cost of log supply, natural or man-made disasters, currency exchange sensitivity, regulatory changes, allowable annual cut reductions, Aboriginal title and rights claims, potential countervailing and anti-dumping duties, stumpage fee variables and changes, environmental impact and performance, labour disruptions, and other factors referenced herein and in Interfor''s Annual Report available on and . The forward-looking information and statements contained in this release are based on Interfor''s current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
ABOUT INTERFOR
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at .
The Company''s unaudited interim condensed consolidated financial statements and Management''s Discussion and Analysis for the three months ended March 31, 2016 are available at and .
There will be a conference call on Friday, April 29, 2016 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company''s release of its first quarter 2016 financial results.
The dial-in number is 1-866-233-4795. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until May 13, 2016. The number to call is 1-888-203-1112, Passcode 2393403.
Contacts:
Interfor Corporation
John A. Horning
Executive Vice President and Chief Financial Officer
(604) 689-6829
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Datum: 28.04.2016 - 15:01 Uhr
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