Interfor Reports Q1''17 Results
Record EBITDA(1) of $60.3 million on Sales of $456.8 million Higher Lumber Prices Significant Gains From Operational Improvement Initiatives
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/04/17 -- INTERFOR CORPORATION ("Interfor" or "the Company") (TSX: IFP) recorded net earnings in Q1''17 of $19.7 million, or $0.28 per share, compared to $26.6 million, or $0.38 per share in Q4''16 and $0.8 million, or $0.01 per share in Q1''16. Adjusted net earnings(1) (which takes into account the effects of share-based compensation expense and non-recurring items) in Q1''17 were $22.7 million or $0.32 per share, compared to $17.7 million, or $0.25 per share in Q4''16 and $2.7 million, or $0.04 per share in Q1''16.
Adjusted EBITDA was $60.3 million on sales of $456.8 million in Q1''17 versus $51.3 million on sales of $442.3 million in Q4''16.
Notable items in the quarter included:
(1) Refer to Adjusted EBITDA and Adjusted net earnings in Non-GAAP Measures section
Softwood Lumber Duties
Following the quarter end, the U.S. Department of Commerce ("DoC") preliminarily ruled on its case against Canadian softwood lumber producers. As a result, the U.S. Customs and Border Protection Agency will begin collecting deposits from Interfor on April 28, 2017, for countervailing duties at a preliminary rate of 19.88% on its shipments of softwood lumber from Canada into the U.S.
In addition, the DoC has taken the unjustified position that most Canadian lumber producers, including Interfor, may be required to submit a deposit for retroactive countervailing duties for the 90-day period from January 28 to April 27, 2017. Interfor does not believe the retroactive application of duties will stand up under final scrutiny which, in turn, should result in a full return of the related deposit to the Company.
In Q1''17, Interfor shipped approximately 100 million board feet from its Canadian operations to the U.S. market, which represented approximately 16% of the Company''s total lumber sales. Interfor is of the view that the DoC''s positions are without merit and are politically driven. Interfor intends to vigorously defend the Company''s and the Canadian industry''s positions through various appeal processes, in conjunction with the B.C. and Canadian Governments.
Liquidity
Balance Sheet
Net debt at March 31, 2017 was $306.7 million, or 27.6% of invested capital, representing a decrease of $121.4 million from March 31, 2016 and an increase of $17.1 million from December 31, 2016. A slightly stronger Canadian Dollar against the U.S. Dollar offset Q1''17 borrowings by $2.7 million 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, 2017:
As of March 31, 2017, the Company had commitments for capital expenditures totaling $7.6 million, related to both maintenance and discretionary 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, 2017, the Company had net working capital of $190.8 million and available capacity on operating and term facilities of $258.1 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, Net debt to invested capital and Operating cash flow per share (before working capital changes) 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:
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 "believes", "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 consolidated financial statements and Management''s Discussion and Analysis for Q1''17 are available at and .
There will be a conference call on Friday, May 5, 2017 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company''s release of its first quarter 2017 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 June 4, 2017. The number to call is 1-888-203-1112, Passcode 4485904.
Contacts:
Interfor Corporation
John A. Horning
Executive Vice President and Chief Financial Officer
(604) 689-6829
Interfor Corporation
Martin L. Juravsky
Senior Vice President, Corporate Development and Strategy
(604) 689-6873
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Datum: 04.05.2017 - 15:51 Uhr
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