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
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E-mailVANCOUVER, 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:
-- Mixed Benchmark Lumber Prices and Stronger Canadian Dollar
-- Total lumber production was 645 million board feet, or 10 million
board feet fewer than the prior quarter. Accordingly, sales of
Interfor-produced lumber were 650 million board feet versus 654
million board feet in Q2'17. Production in the U.S. South region
decreased to 281 million board feet from 294 million board feet in
the preceding quarter, as the Company took precautionary measures
and temporarily suspended operations at most of its U.S. South
sawmills for several days in advance of and during Hurricane Irma.
Fortunately, the Company's sawmills did not sustain any material
damage and have since been operating in a normal manner. The B.C.
and U.S. Northwest regions, in spite of facing fire-related log
harvest constraints, produced at levels comparable to Q2'17. The
B.C. and U.S. Northwest regions accounted for 225 million board feet
and 139 million board feet, respectively, compared to 215 million
board feet and 146 million board feet in Q2'17, respectively.
-- Interfor's average lumber selling price decreased $31 from Q2'17 to
$611 per mfbm, due to a combination of factors, including a US$31
per mfbm decline in the SYP Composite benchmark price and a
strengthening of the Canadian Dollar by 6.8% on average, partially
offset by a US$26 per mfbm increase in the Western SPF Composite
benchmark price.
-- Significant Cash Flow and Lower Leverage
-- Interfor generated $57.5 million of cash from operations before
changes in working capital, or $0.82 per share, plus a $3.5 million
reduction in working capital, for total cash generated from
operations of $61.0 million.
-- Capital spending was $28.9 million on a mix of high-return
discretionary, maintenance and woodlands projects.
-- Net debt ended the quarter at $177.8 million, or 17.9% of invested
capital.
(1) Refer to Adjusted EBITDA and Adjusted net earnings in the Non-GAAP Measures section
Strategic Capital Plan
-- Interfor has been working on a multi-year strategic capital plan (the
"Plan") that will involve a number of discretionary projects designed to
capture the opportunities within its current operating platform and to
pursue opportunities for further growth.
-- The Company has received Board approval to proceed with the Plan, the
key elements of which include:
-- An increase in discretionary spending on existing assets over the
next five years.
-- The Plan includes both large scale projects that involve the
rebuilding of a number of machine centres, plus a series of
smaller debottlenecking and optimization projects, with
attractive paybacks. For 2018, discretionary spending is
expected to be in the range of $100 million, representing
approximately two-thirds of the Company's total annual capital
program.
-- As part of the 2018 phase, Interfor is proceeding with projects
at two of its sawmills in the U.S. South that involve spending
of approximately US$65 million which are designed to increase
production by approximately 150 million board feet per year,
lower cash conversion costs, improve lumber recovery and enhance
grade outturns and product mix. These projects are expected to
be completed in Q4'18 and Q1'19, respectively.
-- Other large capital projects are continuing to be advanced from
an engineering and feasibility standpoint and will be sequenced
as appropriate. These projects will be subject to Board
approval in the normal course.
-- Interfor has completed a detailed feasibility study and business
case for a greenfield sawmill capable of producing in excess of 200
million board feet of lumber on an annualized basis. Interfor is
now proceeding with the next stage of its process and has identified
a potential location in the Central Region of the U.S. South.
Interfor has estimated the total capital cost to be approximately
US$115 million, including pre-start-up costs and working capital. A
decision on the project is expected in early 2018.
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.
Summary of Quarterly Results (1)
2017
--------------------------
--------------------------
Unit Q3 Q2 Q1
-------------------------------------------------------------
-------------------------------------------------------------
Financial Performance
(Unaudited)
Total sales $MM 489.2 511.4 456.8
Lumber $MM 410.2 433.7 389.6
Logs, residual
products and other $MM 79.0 77.7 67.2
Operating earnings
(loss) $MM 28.3 42.7 30.4
Net earnings (loss) $MM 16.8 24.5 19.7
Net earnings (loss)
per share, basic $/share 0.24 0.35 0.28
Adjusted net earnings
(2) $MM 20.0 28.7 22.7
Adjusted net earnings
per share, basic(2) $/share 0.29 0.41 0.32
Adjusted EBITDA(2) $MM 60.5 77.4 60.3
Shares outstanding -
end of period million 70.0 70.0 70.0
Shares outstanding -
weighted average million 70.0 70.0 70.0
Operating Performance
million
Lumber production fbm 645 655 640
million
Total lumber sales fbm 671 675 645
Lumber sales - million
Interfor produced fbm 650 654 624
Lumber sales -
wholesale and million
commission fbm 21 21 21
Lumber - average $/thousand
selling price (3) fbm 611 642 604
Average USD/CAD 1 USD in
exchange rate (4) CAD 1.2528 1.3449 1.3238
Closing USD/CAD 1 USD in
exchange rate (4) CAD 1.2480 1.2977 1.3322
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Summary of Quarterly Results (1)
2016 2015
---------------------------------- --------
---------------------------------- --------
Unit Q4 Q3 Q2 Q1 Q4
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Financial Performance
(Unaudited)
Total sales $MM 442.3 457.6 458.8 433.9 411.4
Lumber $MM 363.5 374.8 371.1 348.9 325.0
Logs, residual
products and other $MM 78.8 82.8 87.7 85.0 86.4
Operating earnings
(loss) $MM 22.3 20.1 30.0 3.5 (6.3)
Net earnings (loss) $MM 26.6 15.1 23.2 0.8 (3.5)
Net earnings (loss)
per share, basic $/share 0.38 0.22 0.33 0.01 (0.05)
Adjusted net earnings
(2) $MM 17.7 20.7 17.5 2.7 4.5
Adjusted net earnings
per share, basic(2) $/share 0.25 0.30 0.25 0.04 0.06
Adjusted EBITDA(2) $MM 51.3 58.1 56.9 33.4 35.8
Shares outstanding -
end of period million 70.0 70.0 70.0 70.0 70.0
Shares outstanding -
weighted average million 70.0 70.0 70.0 70.0 70.0
Operating Performance
million
Lumber production fbm 607 628 637 618 568
million
Total lumber sales fbm 619 647 658 637 615
Lumber sales - million
Interfor produced fbm 598 627 634 609 586
Lumber sales -
wholesale and million
commission fbm 21 20 24 28 29
Lumber - average $/thousand
selling price (3) fbm 588 580 564 548 529
Average USD/CAD 1 USD in
exchange rate (4) CAD 1.3341 1.3050 1.2886 1.3732 1.3354
Closing USD/CAD 1 USD in
exchange rate (4) CAD 1.3427 1.3117 1.3009 1.2971 1.3840
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Notes:
(1) Figures in this table may not add due to rounding.
(2) Refer to the Non-GAAP Measures section of this release for a definition
and reconciliation of this measure to figures reported in the Company's
consolidated financial statements.
(3) Gross sales before export taxes.
(4) Based on Bank of Canada foreign exchange rates.
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.
For the 9 months
For the 3 months ended ended
Sept. Sept. Sept. Sept.
30, 30, Jun. 30, 30, 30,
----------------------------- -------------------
Thousands of dollars 2017 2016 2017 2017 2016
------------------------------------------------------- -------------------
------------------------------------------------------- -------------------
Net debt
Net debt, period opening,
CAD $218,252 $395,959 $306,676 $289,551 $452,303
Net drawing (repayment)
on credit facilities,
CAD 2 (44,138) (59,468) (40,216) (77,704)
Impact on U.S. Dollar
denominated debt from
(strengthening)
weakening CAD (9,942) 2,441 (6,359) (19,005) (25,734)
Increase in cash and cash
equivalents, CAD (30,525) (7,333) (22,597) (52,543) (1,936)
----------------------------- -------------------
Net debt, period ending,
CAD $177,787 $346,929 $218,252 $177,787 $346,929
----------------------------- -------------------
----------------------------- -------------------
Net debt components by
currency
U.S. Dollar debt, period
opening, USD $200,000 $297,500 $235,979 $230,000 $338,699
Net repayment on credit
facilities, USD - (22,791) (35,979) (30,000) (63,990)
----------------------------- -------------------
U.S. Dollar debt, period
ending, USD 200,000 274,709 200,000 200,000 274,709
Spot rate, period end 1.2480 1.3117
U.S. Dollar debt
expressed in CAD 249,600 360,336
Canadian Dollar debt, CAD - 4,985
-------------------
Total debt, CAD 249,600 365,321
Cash and cash
equivalents, CAD (71,813) (18,392)
-------------------
Net debt, period ending,
CAD $177,787 $346,929
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Capital Resources
The following table summarizes Interfor's credit facilities and availability as of September 30, 2017:
Revolving Senior U.S.
Thousands of Canadian Operating Term Secured Operating
Dollars Line Line Notes Line Total
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----------------------------------------------------------------------------
Available line of credit $ 65,000 $ 200,000 $249,600 $ 62,400 $577,000
Maximum borrowing available $ 65,000 $ 200,000 $249,600 $ 62,400 $577,000
Less:
Drawings - - 249,600 - 249,600
Outstanding letters of
credit included in line
utilization 11,246 - - 3,869 15,115
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Unused portion of facility $ 53,754 $ 200,000 $ - $ 58,531 $312,285
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Add: Cash and cash
equivalents 71,813
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Available liquidity at
September 30, 2017 $384,098
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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:
For the 3 months ended For the 9 months ended
Sept. 30, Sept. 30, Jun. 30, Sept. 30, Sept. 30,
-----------------------------------------------------------
Thousands of
Canadian
Dollars except
number of
shares and per
share amounts 2017 2016 2017 2017 2016
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----------------------------------------------------------------------------
Adjusted Net
Earnings(1)
Net earnings $ 16,778 $ 15,093 $ 24,512 $ 60,957 $ 39,093
Add:
Restructuring
(recovery)
costs and
capital asset
write-downs (21) 1,492 1,457 1,781 4,999
Other foreign
exchange loss
(gain) 1,353 (792) 913 2,447 (396)
Long term
incentive
compensation
expense 3,004 8,321 3,270 9,867 4,352
Other (income)
expense 347 (7) 456 992 358
Beaver sawmill
post-closure
wind-down
costs
(recoveries) (39) 6 5 (27) 17
Tacoma sawmill
post-
acquisition
losses and
closure costs - 94 - 1 777
Income tax
effect of
above
adjustments (1,456) (1,408) (1,883) (4,588) (2,887)
Recognition of
previously
unrecognized
deferred tax
assets - (2,134) - - (5,402)
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Adjusted net
earnings $ 19,966 $ 20,665 $ 28,730 $ 71,430 $ 40,911
Weighted average
number of
shares - basic
('000) 70,030 70,030 70,030 70,030 70,030
Adjusted net
earnings per
share $ 0.29 $ 0.30 $ 0.41 $ 1.02 $ 0.58
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----------------------------------------------------------------------------
Adjusted EBITDA
Net earnings $ 16,778 $ 15,093 $ 24,512 $ 60,957 $ 39,093
Add:
Depreciation
of plant and
equipment 18,836 18,624 19,967 58,406 57,558
Depletion and
amortization
of timber,
roads and
other 10,435 9,441 10,024 26,756 27,062
Restructuring
(recovery)
costs and
capital asset
write-downs (21) 1,492 1,457 1,781 4,999
Finance costs 3,294 4,379 3,535 10,891 14,528
Other foreign
exchange loss
(gain) 1,353 (792) 913 2,447 (396)
Income tax
expense
(recovery) 6,559 1,445 13,289 26,168 (29)
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EBITDA 57,234 49,682 73,697 187,406 142,815
Add:
Long term
incentive
compensation
expense 3,004 8,321 3,270 9,867 4,352
Other (income)
expense 347 (7) 456 992 358
Beaver sawmill
post-closure
wind-down
costs
(recoveries) (39) 6 5 (27) 17
Tacoma sawmill
post-
acquisition
losses and
closure costs - 94 - 1 777
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Adjusted
EBITDA(2) $ 60,546 $ 58,096 $ 77,428 $ 198,239 $ 148,319
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Pre-tax return
on total assets
Operating
earnings before
restructuring
costs $ 28,310 $ 21,610 $ 44,162 $ 103,236 $ 58,553
Total assets(3) $1,296,015 $1,337,569 $1,318,784 $1,298,964 $1,358,294
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Pre-tax return
on total
assets(4) 8.7% 6.5% 13.4% 10.6% 5.7%
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Net debt to
invested
capital
Net debt
Total debt $ 249,600 $ 365,321 $ 259,540 $ 249,600 $ 365,321
Cash and cash
equivalents (71,813) (18,392) (41,288) (71,813) (18,392)
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Total net debt $ 177,787 $ 346,929 $ 218,252 $ 177,787 $ 346,929
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Invested capital
Net debt $ 177,787 $ 346,929 $ 218,252 $ 177,787 $ 346,929
Shareholders'
equity 817,676 745,333 816,136 817,676 745,333
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Total invested
capital $ 995,463 $1,092,262 $1,034,388 $ 995,463 $1,092,262
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Net debt to
invested
capital(5) 17.9% 31.8% 21.1% 17.9% 31.8%
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Operating cash
flow per share
(before working
capital
changes)
Cash provided by
operating
activities $ 60,977 $ 67,689 $ 105,816 $ 171,475 $ 150,291
Cash used in
(generated
from) operating
work capital (3,474) (12,814) (32,531) 19,028 (8,094)
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Operating cash
flow (before
working capital
changes) $ 57,503 $ 54,875 $ 73,285 $ 190,503 $ 142,197
Weighted average
number of
shares - basic
('000) 70,030 70,030 70,030 70,030 70,030
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Operating cash
flow per share
(before working
capital
changes) $ 0.82 $ 0.78 $ 1.05 $ 2.72 $ 2.03
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Notes:
(1) Certain historical periods have been recast to exclude the recognition
of previously unrecognized deferred tax assets from Adjusted net
earnings.
(2) If countervailing and anti-dumping duties expense was excluded, Adjusted
EBITDA for Q3'17, Q2'17, and YTD'17 would be $70.0 million, $84.7
million, and $215.0 million, respectively. Other periods presented were
not impacted by such duties.
(3) Total assets at period beginning for three month periods; average of
opening and closing total assets for nine month periods.
(4) Annualized rate.
(5) Net debt to invested capital as of the period end.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three and nine months ended September 30, 2017 and 2016 (unaudited)
----------------------------------------------------------------------------
(thousands of Canadian
Dollars except earnings per
share) 3 Months 3 Months 9 Months 9 Months
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2017 2016 2017 2016
----------------------------------------------------------------------------
Sales $ 489,169 $ 457,647 $1,457,325 $1,350,404
Costs and expenses:
Production 407,222 388,733 1,205,504 1,169,356
Selling and administration 11,936 10,918 36,817 33,523
Long term incentive
compensation expense 3,004 8,321 9,867 4,352
U.S. countervailing and
anti-dumping duty
deposits 9,426 - 16,739 -
Depreciation of plant and
equipment 18,836 18,624 58,406 57,558
Depletion and amortization
of timber, roads and
other 10,435 9,441 26,756 27,062
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460,859 436,037 1,354,089 1,291,851
----------------------------------------------------------------------------
Operating earnings before
restructuring costs 28,310 21,610 103,236 58,553
Restructuring costs
(recovery) (21) 1,492 1,781 4,999
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Operating earnings 28,331 20,118 101,455 53,554
Finance costs (3,294) (4,379) (10,891) (14,528)
Other foreign exchange gain
(loss) (1,353) 792 (2,447) 396
Other income (expense) (347) 7 (992) (358)
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(4,994) (3,580) (14,330) (14,490)
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Earnings before income taxes 23,337 16,538 87,125 39,064
Income tax expense
(recovery)
Current 22 288 708 749
Deferred 6,537 1,157 25,460 (778)
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6,559 1,445 26,168 (29)
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Net earnings $ 16,778 $ 15,093 $ 60,957 $ 39,093
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Net earnings per share,
basic and diluted $ 0.24 $ 0.22 $ 0.87 $ 0.56
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended September 30, 2017 and 2016 (unaudited)
----------------------------------------------------------------------------
3 Months 3 Months 9 Months 9 Months
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2017 2016 2017 2016
----------------------------------------------------------------------------
Net earnings $ 16,778 $ 15,093 $ 60,957 $ 39,093
Other comprehensive income
(loss):
Items that will not be
recycled to Net earnings:
Defined benefit plan
actuarial gains (losses),
net of tax 1,192 (42) 794 (2,988)
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Items that are or may be
recycled to Net earnings:
Foreign currency
translation differences
for foreign operations,
net of tax (16,589) 2,622 (31,151) (16,210)
Gain (loss) in fair value
of interest rate swaps - 93 (11) (46)
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Total items that are or
may be recycled to Net
earnings (16,589) 2,715 (31,162) (16,256)
----------------------------------------------------------------------------
Total other comprehensive
income (loss), net of tax (15,397) 2,673 (30,368) (19,244)
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Comprehensive income $ 1,381 $ 17,766 $ 30,589 $ 19,849
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2017 and 2016 (unaudited)
(thousands of Canadian Dollars) 3 Months 3 Months 9 Months 9 Months
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2017 2016 2017 2016
----------------------------------------------------------------------------
Cash provided by (used in):
Operating activities:
Net earnings $ 16,778 $ 15,093 $ 60,957 $ 39,093
Items not involving cash:
Depreciation of plant and
equipment 18,836 18,624 58,406 57,558
Depletion and amortization of
timber, roads and other 10,435 9,441 26,756 27,062
Income tax expense (recovery) 6,559 1,445 26,168 (29)
Finance costs 3,294 4,379 10,891 14,528
Other assets (252) (22) (70) (306)
Reforestation liability (522) 2,235 1,787 1,692
Provisions and other liabilities 2,178 4,288 4,225 993
Stock options 159 97 420 230
Write-down of plant and
equipment - - - 1,018
Unrealized foreign exchange gain (2) (698) (11) -
Other 40 (7) 974 358
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57,503 54,875 190,503 142,197
Cash generated from (used in)
operating working capital:
Trade accounts receivable and
other (8,785) 2,195 (21,041) (9,858)
Inventories 10,417 5,507 (5,255) (261)
Prepayments and other (1,011) 254 (1,430) 517
Trade accounts payable and
provisions 3,576 5,123 9,841 18,427
Income taxes paid (723) (265) (1,143) (731)
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60,977 67,689 171,475 150,291
Investing activities:
Additions to property, plant and
equipment (19,805) (15,223) (42,957) (37,220)
Additions to logging roads and
bridges (8,608) (7,484) (25,139) (18,721)
Additions to timber licenses and
other intangible assets (461) (633) (1,826) (988)
Proceeds on disposal of property,
plant and equipment 63 2 461 316
Proceeds on disposal of
investments 2,136 10,342 2,136 10,342
Investments and other assets 669 (1,347) 517 (10,900)
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(26,006) (14,343) (66,808) (57,171)
Financing activities:
Interest payments (2,832) (2,268) (9,585) (13,433)
Debt refinancing costs (615) (167) (785) (1,009)
Change in operating line
components of long-term debt 2 2,937 (63) (8,796)
Additions to long term debt - - 76,107 28,000
(116,26
Repayments of long term debt - (47,074) 0) (96,908)
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(3,445) (46,572) (50,586) (92,146)
Foreign exchange gain (loss) on cash
and cash equivalents held in a
foreign currency (1,001) 559 (1,538) 962
----------------------------------------------------------------------------
Increase in cash 30,525 7,333 52,543 1,936
Cash and cash equivalents, beginning
of period 41,288 11,059 19,270 16,456
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Cash and cash equivalents, end of
period $ 71,813 $ 18,392 $ 71,813 $ 18,392
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2017 and December 31, 2016 (unaudited)
----------------------------------------------------------------------------
(thousands of Canadian Dollars) Sept. 30, Dec. 31,
2017 2016
----------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 71,813 $ 19,270
Trade accounts receivable and other 113,332 95,059
Income taxes receivable 583 222
Inventories 155,624 154,535
Prepayments and other 14,807 14,016
Investments and other assets 921 2,911
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357,080 286,013
Employee future benefits 3,283 2,471
Other investments and assets 2,507 2,341
Property, plant and equipment 678,395 730,981
Logging roads and bridges 26,440 20,739
Timber licences 67,296 69,273
Other intangible assets 14,893 19,017
Goodwill 146,386 156,502
Deferred income taxes - 14,311
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$1,296,280 $1,301,648
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Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable and provisions $ 142,499 $ 138,029
Reforestation liability 12,702 11,609
Income taxes payable 223 317
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155,424 149,955
Reforestation liability 28,071 25,931
Long term debt 249,600 308,821
Employee future benefits 8,409 8,136
Provisions and other liabilities 24,980 21,290
Deferred income taxes 12,120 848
Equity:
Share capital 555,388 555,388
Contributed surplus 8,419 7,999
Translation reserve 38,423 69,574
Hedge reserve - 11
Retained earnings 215,446 153,695
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817,676 786,667
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$1,296,280 $1,301,648
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Approved on behalf of the Board of Directors:
"L. Sauder" "D.W.G. Whitehead"
Director 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 www.sedar.com and www.interfor.com. 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 www.interfor.com.
The Company's unaudited consolidated financial statements and Management's Discussion and Analysis for Q3'17 are available at www.sedar.com and www.interfor.com.
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
Source: Interfor Corporation
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