Interfor Reports Q3''17 Results
EBITDA(1) of $60.5 million (or $70.0 million excluding duties) Free Cash Flow from Operations of $57.5 Million (or $0.82 per Share) Net Debt to Invested Capital Ratio of 17.9% Proceeding With Strategic Capital Plan
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/02/17 -- INTERFOR CORPORATION ("Interfor" or "the Company") (TSX: IFP) recorded net earnings in Q3''17 of $16.8 million, or $0.24 per share, compared to $24.5 million, or $0.35 per share in Q2''17 and $15.1 million, or $0.22 per share in Q3''16. Adjusted net earnings(1) (which takes into account the effects of share-based compensation expense and non-recurring items) in Q3''17 were $20.0 million or $0.29 per share, compared to $28.7 million, or $0.41 per share in Q2''17 and $20.7 million, or $0.30 per share in Q3''16.
Adjusted EBITDA(1) for Q3''17 was $60.5 million (or $70.0 million excluding the impact from $9.4 million of softwood lumber duties expense), on sales of $489.2 million versus $77.4 million on sales of $511.4 million in Q2''17.
Notable items in the quarter included:
(1) Refer to Adjusted EBITDA and Adjusted net earnings in the Non-GAAP Measures section
Strategic Capital Plan
Softwood Lumber Duties
Interfor recorded $9.4 million of expense in respect of countervailing and anti-dumping duties imposed by the U.S. on its lumber shipments from Canada into the U.S. during Q3''17. Anti-dumping duties were incurred at a preliminary rate of 6.87% throughout the third quarter while countervailing duties, at a preliminary rate of 19.88%, were only applicable on shipments through August 13th. The countervailing duty ceased in August in accordance with U.S. law and is not expected to resume until late December 2017 or early January 2018, pending final rulings by the U.S. International Trade Commission. In Q3''17, Interfor shipped approximately 115 million board feet from its Canadian operations to the U.S. market, which represented approximately 17% of the Company''s total lumber sales.
On November 2, 2017, the U.S. Department of Commerce announced its final determinations. As part of its determinations, the final countervailing duty rate was lowered from 19.88% to 14.25%, while the anti-dumping duty rate was lowered from 6.87% to 6.58%. In addition, the U.S. Department of Commerce concluded that critical circumstances did not exist for countervailing duties, but did exist for anti-dumping duties.
Interfor has not yet submitted any deposits in respect of retroactive duties relating to critical circumstances, which could total approximately US$3.0 million in respect of anti-dumping. Interfor does not believe the retroactive application of such duties will stand up under final scrutiny which, in turn, should result in a full return to the Company of any related deposits.
Interfor is of the view that these duties imposed by the U.S. 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.
Notice of CFO Retirement Plans
John Horning, Interfor''s Chief Financial Officer, has notified the Company''s Board of his intention to retire on December 31, 2018. Mr. Horning, 62, who has been with Interfor since 1997, has been instrumental in the Company''s repositioning and growth initiatives over the last two decades. A successor will be named in due course.
Liquidity
Balance Sheet
Net debt at September 30, 2017 was $177.8 million, or 17.9% of invested capital, representing a decrease of $169.1 million from September 30, 2016 and a decrease of $111.8 million from December 31, 2016. A strengthened Canadian Dollar against the U.S. Dollar reduced debt by $19.0 million over the first nine months of 2017.
Capital Resources
The following table summarizes Interfor''s credit facilities and availability as of September 30, 2017:
As of September 30, 2017, the Company had commitments for capital expenditures totaling $12.6 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 September 30, 2017, the Company had net working capital of $201.7 million and available capacity on operating and term facilities of $312.3 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, Adjusted net earnings 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:
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 Q3''17 are available at and .
There will be a conference call on Friday, November 3, 2017 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company''s release of its third quarter 2017 financial results.
The dial-in number is 1-833-297-9919. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until December 3, 2017. The number to call is 1-855-859-2056, Passcode 88589331.
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: 02.11.2017 - 16:22 Uhr
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News-ID 1527133
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