Interfor Reports Q2''17 Results
Record EBITDA(1) of $77.4 million (or $84.7 million excluding duties); Record Sales of $511.4 million Free Cash Flow from Operations of $73.3 Million (or $1.05 per Share) Net Debt to Invested Capital Ratio of 21.1% Strong Results Reflect the Full Realization from Phase 1 Margin Improvement Initiatives; Additional Opportunities Identified
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/03/17 -- INTERFOR CORPORATION ("Interfor" or "the Company") (TSX: IFP) recorded net earnings in Q2''17 of $24.5 million, or $0.35 per share, compared to $19.7 million, or $0.28 per share in Q1''17 and $23.2 million, or $0.33 per share in Q2''16. Adjusted net earnings(1) (which takes into account the effects of share-based compensation expense and non-recurring items) in Q2''17 were $28.7 million or $0.41 per share, compared to $22.7 million, or $0.32 per share in Q1''17 and $17.5 million, or $0.25 per share in Q2''16.
Adjusted EBITDA(1) for the second quarter, 2017 was $77.4 million (or $84.7 million excluding the impact from $7.3 million of softwood lumber duties expense), on sales of $511.4 million versus $60.3 million on sales of $456.8 million in Q1''17.
Notable items in the quarter included:
(1) Refer to Adjusted EBITDA and Adjusted net earnings in the Non-GAAP Measures section
Softwood Lumber Duties
During the second quarter, the U.S. Department of Commerce ("DoC") preliminarily ruled on its cases against Canadian softwood lumber producers for both countervailing and anti-dumping duties. As a result, the U.S. Customs and Border Protection Agency began collecting deposits from Interfor on its shipments of softwood lumber from Canada into the U.S. for countervailing duties on April 28, 2017 at a preliminary rate of 19.88% and for anti-dumping duties on June 30, 2017 at a preliminary rate of 6.87%.
In addition, the DoC has taken the unjustified position that most Canadian lumber producers, including Interfor, may be required to submit deposits for retroactive countervailing duties for the 90 days prior to April 28, 2017 and for retroactive anti-dumping duties for the 90 days prior to June 30, 2017. Interfor has not submitted any such deposits, which could total approximately US$8.4 million and US$3.0 million for countervailing and anti-dumping duties, respectively. 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 any related deposits to the Company.
In Q2''17, Interfor shipped approximately 100 million board feet from its Canadian operations to the U.S. market, which represented approximately 15% 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.
Summary of Quarterly Results(1)
Notes:
Liquidity
Balance Sheet
Net debt at June 30, 2017 was $218.3 million, or 21.1% of invested capital, representing a decrease of $177.7 million from June 30, 2016 and a decrease of $71.3 million from December 31, 2016. A slight strengthening of the Canadian Dollar against the U.S. Dollar reduced net debt by $9.1 million over the first six months of 2017.
Capital Resources
The following table summarizes Interfor''s credit facilities and availability as of June 30, 2017:
As of June 30, 2017, the Company had commitments for capital expenditures totaling $12.1 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 June 30, 2017, the Company had net working capital of $177.1 million and available capacity on operating and term facilities of $314.8 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:
Notes:
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 Q2''17 are available at and .
There will be a conference call on Friday, August 4, 2017 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company''s release of its second 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 September 3, 2017. The number to call is
1-888-203-1112, Passcode 1493113.
Contacts:
John A. Horning
Executive Vice President and Chief Financial Officer
(604) 689-6829
Martin L. Juravsky
Senior Vice President, Corporate Development and Strategy
(604) 689-6873
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Datum: 03.08.2017 - 16:55 Uhr
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