Interfor Reports Q2''16 Results
Record EBITDA(1) of $56.9 million Strong Lumber Prices Progress on Operational Initiatives
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/28/16 -- INTERFOR CORPORATION ("Interfor" or the "Company") (TSX: IFP) recorded net earnings in Q2''16 of $23.2 million, or $0.33 per share, compared to $0.8 million, or $0.01 per share in Q1''16. Adjusted net earnings1 in Q2''16 were $20.9 million, or $0.30 per share, compared to $2.6 million, or $0.04 per share, in Q1''16.
Adjusted EBITDA1 was $56.9 million on sales of $458.8 million in Q2''16, versus Adjusted EBITDA1 of $33.4 million on sales of $433.9 million in Q1''16.
Highlights for the quarter include:
1 Refer to Non-GAAP Measures section
Production
Lumber production in Q2''16 was 637 million board feet versus 618 million board feet in Q1''16.
Production from Canadian operations totaled 218 million board feet in Q2''16, up 8 million board feet compared to Q1''16. Production increased most significantly at Castlegar, which produced an additional 4 million board feet as productivity gains have continued following the resumption of operations at that mill in Q4''15.
Production from the Company''s nine U.S. South sawmills totaled 270 million board feet, up 5 million board feet compared to Q1''16 as a result of a modest increase in total productivity.
Production from U.S. Northwest operations totaled 149 million board feet in Q2''16, an increase of 6 million board feet over the preceding quarter. The Company''s three stud mills in the region contributed an additional 3 million board feet while its specialty board mill at Gilchrist also added 3 million board feet, both as a result of productivity improvements.
Lumber Markets and Pricing
Lumber markets were relatively strong in the second quarter on increased demand, as reflected by improvements in all three of Interfor''s key price benchmarks over the first quarter. The Western SPF Composite improved by US$38 to US$300 per mfbm, the SP Composite increased by US$27 to US$390 per mfbm and the KD HF Stud 2x4 9'' benchmark rose by US$23 to US$355 per mfbm.
Balance Sheet
Net debt at June 30, 2016 was $396.0 million, or 35.2% of invested capital, representing a decrease of $34.9 million from June 30, 2015 and a decrease of $56.3 million from December 31, 2015. A 6.0% strengthening of the Canadian Dollar against the U.S. Dollar contributed $28.2 million to the net debt reduction in YTD''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 June 30, 2016:
As of June 30, 2016, the Company had commitments for capital expenditures totaling $17.5 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 June 30, 2016, the Company had net working capital of $161.2 million and available capacity on operating and term facilities of $170.1 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 release 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:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the three and six months ended June 30, 2016 and 2015 (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three and six months ended June 30, 2016 and 2015 (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and six months ended June 30, 2016 and 2015 (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, 2016 and December 31, 2015 (unaudited)
Approved on behalf of the Board:
L. Sauder, Director
D.W.G. Whitehead, Director
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 and six months ended June 30, 2016 are available at and .
There will be a conference call on Friday, July 29, 2016 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company''s release of its second 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 August 12, 2016. The number to call is 1-888-203-1112, Passcode 6364992.
Contacts:
Interfor Corporation
John A. Horning
Executive Vice President and Chief Financial Officer
(604) 689-6829
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Datum: 28.07.2016 - 15:00 Uhr
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