EBITDA⁽¹⁾ of $69 million and Net Earnings of $28 million
Operating Cash Flow⁽¹⁾ of $1.00 per share
Net Debt to Invested Capital⁽¹⁾ of 0%
Greenfield Decision Postponed Indefinitely

VANCOUVER, British Columbia, Nov. 08, 2018 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded net earnings in Q3’18 of $28.1 million, or $0.40 per share, compared to $63.8 million, or $0.91 per share in Q2’18 and $16.8 million, or $0.24 per share in Q3’17.  Adjusted net earnings in Q3’18 were $28.2 million or $0.40 per share, compared to $68.9 million, or $0.98 per share in Q2’18 and $20.0 million, or $0.29 per share in Q3’17.

Adjusted EBITDA was $69.4 million on sales of $570.5 million in Q3’18 versus $123.8 million on sales of $619.9 million in Q2’18.

In comparison to the third quarter of 2017, Interfor posted improved results across most key metrics, including an $8.9 million or 15% improvement in Adjusted EBITDA, an $11.3 million or 67% increase in net earnings and a 29 million board foot rise in lumber production.

Notable items in the quarter included:

•  Lower Lumber Prices

• Key benchmark prices decreased quarter-over-quarter, with the SYP Composite, Western SPF Composite and KD H-F Stud 2x4 9’ benchmark dropping by US$63, US$98 and US$94 per mfbm, respectively. Interfor’s average lumber selling price fell $52 from Q2’18 to $701 per mfbm.
  
  
• Lumber prices have experienced an unusual level of volatility in 2018. The logistics disruptions that occurred in Q1’18 led to a significant increase in lumber inventories being trapped at producer yards.  This supply side constraint, combined with growing demand, contributed to an unprecedented rise in lumber prices during the early part of the year. As shipment levels increased, prices responded, falling in record amounts from late May through the end of September and dropping further in the early part of Q4’18. Notwithstanding the volatility experienced in 2018, Interfor believes that the underlying fundamental drivers of demand for its lumber products remain positive.

•  Production Balanced With Shipments

• Total lumber production was 674 million board feet or 14 million board feet lower than the prior quarter.  Production in the U.S. South region of 313 million board feet was negatively impacted by several factors including preventative downtime ahead of Hurricane Florence and maintenance/project related downtime, which contributed to a 12 million board feet decrease from the preceding quarter.  The B.C. and U.S. Northwest regions accounted for 224 million board feet and 137 million board feet, respectively, compared to 215 million board feet and 148 million board feet in Q2’18, respectively.
  
  
• Total lumber shipments were 685 million board feet, of which 675 million board feet were Interfor produced volumes, with the balance of 10 million board feet being agency and wholesale volumes.  Total lumber shipments were 15 million board feet lower than Q2’18, as Q3’18 shipments were negatively impacted by adverse weather in the U.S. South.  The Company’s lumber inventory was reduced 2 million board feet quarter-over-quarter.
    
• Production in Q4’18 from Interfor’s B.C. Interior operations will be impacted by a previously announced temporary curtailment.  The curtailment is in response to the combination of declining lumber prices and escalating log costs and is expected to reduce the Company’s production in the region by approximately 20% during the quarter.

•  Higher Operating Costs

• Interfor’s production costs increased by $22 per mfbm of lumber sold in Q3’18 versus Q2’18, as a result of several factors, including:  (i) higher stumpage and log hauling costs in the B.C. Interior; (ii) higher log and lumber inventory valuation adjustments due to the decline in lumber prices; (iii) higher maintenance spending in the U.S. South; and (iv) lower production due to the downtime from several maintenance projects and adverse weather in the U.S. South.

•  Strong Cash Flows and Liquidity

• Interfor generated $69.7 million of cash from operations before changes in working capital, or $1.00 per share.  Total cash generated from operations was $85.0 million.
  
  
• Net debt ended the quarter at $3.8 million, or 0.4% of invested capital, resulting in available liquidity of $567.2 million.  The Company closed on its previously announced agreement to extend US$84 million of its 2021 to 2023 term debt maturities to 2027 to 2029, resulting in a weighted average fixed interest rate on its term debt of 4.47%.
  
  
• Capital spending was $38.5 million on a mix of high-return discretionary, maintenance and woodlands projects.  In addition, Interfor has US$12.6 million of deposits placed with key suppliers for capital equipment related to Phases I and II of its strategic capital plan.
  
  
• Interfor purchased and cancelled 597,245 of its common shares at a total cost of $12.0 million.  The Company’s existing normal course issuer bid (“NCIB”) permits the purchase of up to 3,500,000 common shares until its expiry on March 6, 2019.

•  Softwood Lumber Duties

• Interfor expensed $15.9 million of duties in the quarter, representing the full amount of countervailing (“CV”) and anti-dumping (“AD”) duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 20.23%.
  
  
• Cumulative duties of US$52.9 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S.  Of this total, US$3.2 million is recorded as a receivable in respect of overpayments arising from duty rate adjustments and US$49.7 million has been expensed and is not recorded on the balance sheet as a receivable.

__________________
^{(1)  Refer to Adjusted EBITDA, Operating cash flow per share and Net debt to invested capital in the Non-GAAP Measures section}

Strategic Capital Plan Update

• Interfor continues to make progress on previously announced Phases I and II strategic capital projects in the U.S. South.  The Phase I projects total US$65 million at the Meldrim, Georgia and Monticello, Arkansas sawmills.  Both of these projects remain on budget, with completion set for the Meldrim project in Q1’19 and the Monticello project by Q2’19.  The Phase II projects total US$240 million at the Thomaston and Eatonton sawmills in Georgia and the Georgetown sawmill in South Carolina.  These projects are on track for completion in various stages over the period of 2019 to 2021.

Greenfield Decision Postponed Indefinitely

• Over the past year, Interfor has been assessing the feasibility of greenfield sawmill opportunities in the U.S. South.  In that regard, the Company has completed a detailed engineering study, secured the rights to a well-located site and negotiated a number of ancillary arrangements in support of the project.  However, based on prevailing market conditions for greenfield projects, including equipment lead times, contractor availability and projected capital costs, Interfor has concluded the project does not currently meet its criteria for discretionary investments and has postponed its decision on the project for an indefinite period.
  
  
• In the meantime, the Company intends to focus on the previously announced Phase I and II internal capital projects and on other capital investment alternatives.  Any future decision on the greenfield project would likely result in that project being scheduled for construction, if at all, subsequent to the Phase I and II capital projects achieving substantial completion.

Financial and Operating Highlights ⁽¹⁾ 

 

		For the 3 months ended					For the 9 months ended
		Sept. 30		Sept. 30	Jun. 30		Sept. 30	Sept. 30
	Unit	2018		2017	2018		2018	2017
Financial Highlights(2)
Total sales	$MM	570.5		489.2	619.9		1,718.0	1,457.3
Lumber	$MM	480.3		410.2	527.0		1,453.2	1,233.4
Logs, residual products and other	$MM	90.2		79.0	92.9		264.8	223.9
Operating earnings	$MM	41.3		28.3	85.9		173.6	101.5
Net earnings	$MM	28.1		16.8	63.8		124.8	61.0
Net earnings per share, basic	$/share	0.40		0.24	0.91		1.78	0.87
Adjusted net earnings(3)	$MM	28.2		20.0	68.9		133.9	71.4
Adjusted net earnings per share, basic(3)	$/share	0.40		0.29	0.98		1.91	1.02
Operating cash flow per share (before working  capital changes)(3)	$/share	1.00		0.82	1.76		3.83	2.72
Adjusted EBITDA(3)	$MM	69.4		60.5	123.8		274.2	198.2
Adjusted EBITDA margin(3)	%	12.2%		12.4%	20.0%		16.0%	13.6%
Total assets	$MM	1,539.5		1,296.3	1,536.0		1,539.5	1,296.3
Total debt	$MM	258.9		249.6	263.4		258.9	249.6
Net debt	$MM	3.8		176.9	34.4		3.8	176.9
Net debt to invested capital(3)	%	0.4%		17.8%	3.4%		0.4%	17.8%
Annualized return on invested capital(3)	%	27.7%		23.9%	48.5%		37.3%	25.5%
Operating Highlights
Lumber production	million fbm	674		645	688		2,029	1,940
Total lumber sales	million fbm	685		671	700		2,033	1,991
Lumber sales - Interfor produced	million fbm	675		650	689		1,999	1,928
Lumber sales - wholesale and commission	million fbm	10		21	11		34	63
Lumber - average selling price(4)	$/thousand fbm	701		611	753		715	620
Average USD/CAD exchange rate(5)	1 USD in CAD	1.3070		1.2528	1.2911		1.2876	1.3074
Closing USD/CAD exchange rate(5)	1 USD in CAD	1.2945		1.2480	1.3168		1.2945	1.2480

Notes:
(1)	Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
(2)	Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
(3)	Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s consolidated financial statements.
(4)	Gross sales before duties.
(5)	Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor maintained a strong financial position throughout Q3’18.  Net debt at September 30, 2018 was $3.8 million, or 0.4% of invested capital, representing a decrease of $173.1 million from September 30, 2017, and a decrease of $115.5 million from December 31, 2017.  The majority of the decrease in net debt in Q3’18 is attributed to strong cash flows generated from operations.  Net debt was positively impacted by a strengthened Canadian Dollar against the U.S. Dollar as all debt held was denominated in U.S. Dollars; this was partially hedged by the Company’s U.S. Dollar cash and marketable securities balances. 

	For the 3 months ended Sept. 30,			For the 9 months ended Sept. 30,
Thousands of Dollars	2018	2017		2018	2017
Net debt
Net debt, period opening, CAD	$34,415	$215,155		$119,300	$289,551
Net repayment on credit facilities, CAD	112	2		111	(40,216)
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD	(4,572)	(9,942)		7,889	(19,005)
Decrease (increase) in cash and cash equivalents, CAD	63,392	(30,525)		(33,953)	(52,543)
Decrease (increase) in marketable securities, CAD	(89,547)	2,176		(89,547)	(921)
Net debt, period ending, CAD	$3,800	$176,866		$3,800	$176,866
Net debt components by currency
U.S. Dollar debt, period opening, USD	$200,000	$200,000		$200,000	$230,000
Net repayment on credit facilities, USD	-	-		-	(30,000)
U.S. Dollar debt, period ending, USD	$200,000	$200,000		200,000	200,000
Spot rate, period end				1.2945	1.2480
U.S. Dollar debt expressed in CAD				258,900	249,600
Total debt, CAD				258,900	249,600
Cash and cash equivalents, CAD				(165,553)	(71,813)
Marketable securities, CAD				(89,547)	(921)
Net debt, period ending, CAD				$3,800	$176,866

As at September 30, 2018, the Company had net working capital of $411.7 million and available liquidity of $567.2 million, including unrestricted cash, marketable securities and borrowing capacity on operating and term line facilities. 

On June 15, 2018, the Company extended the maturity of its U.S. Operating line from May 1, 2019 to June 15, 2021, with no other significant changes.  On August 14, 2018, Interfor completed an agreement to extend US$84 million of its 2021 to 2023 Senior Secured Note maturities to 2027 to 2029.  As a result, Interfor’s weighted average fixed interest rate on its term debt is 4.47%.   

These resources, in addition to cash generated from operations, will be used to support capital expenditures, working capital requirements and debt servicing commitments.  We believe that Interfor will have sufficient liquidity to fund operating and capital requirements for the foreseeable future.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2018:

		Revolving	Senior	U.S.
	Operating	Term	Secured	Operating
Thousands of Canadian Dollars	Line	Line	Notes	Line	Total
Available line of credit	$65,000	$200,000	$258,900	$64,725	$588,625
Maximum borrowing available	$65,000	$200,000	$258,900	$64,725	$588,625
Less:
Drawings	-	-	258,900	-	258,900
Outstanding letters of credit included in line utilization	14,472	-	-	3,184	17,656
Unused portion of facility	$50,528	$200,000	$             -	$61,541	312,069
Add:
Cash and cash equivalents					165,553
Marketable securities					89,547
Available liquidity at September 30, 2018					$567,169

As of September 30, 2018, the Company had commitments for capital expenditures totaling $105.6 million.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes) and Return on 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:

	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	2018	2017	2018		2018	2017
Adjusted Net Earnings
Net earnings	$28,092	$16,778	$63,775		$124,843	$60,957
Add:
Capital asset write-downs and restructuring costs (recovery)	5,848	(21)	4,669		10,753	1,781
Other foreign exchange loss (gain)	1,847	1,353	(1,880)		(144)	2,447
Long term incentive compensation expense (recovery)	(7,503)	3,004	3,996		1,351	9,867
Other expense (income)	(192)	347	80		66	992
Post closure wind-down costs and losses (recoveries)	-	(39)	-		4	(26)
Income tax effect of above adjustments	149	(1,456)	(1,701)		(2,926)	(4,588)
Adjusted net earnings	$28,241	$19,966	$68,939		$133,947	$71,430
Weighted average number of shares - basic ('000)	69,908	70,030	70,038		69,993	70,030
Adjusted net earnings per share	$0.40	$0.29	$0.98		$1.91	$1.02
Adjusted EBITDA
Net earnings	$28,092	$16,778	$63,775		$124,843	$60,957
Add:
Depreciation of plant and equipment	20,071	18,836	20,851		60,990	58,406
Depletion and amortization of timber, roads and other	9,715	10,435	8,350		27,482	26,756
Capital asset write-downs and restructuring costs (recovery)	5,848	(21)	4,669		10,753	1,781
Finance costs	2,465	3,294	2,786		8,156	10,891
Other foreign exchange loss (gain)	1,847	1,353	(1,880)		(144)	2,447
Income tax expense	9,044	6,559	21,132		40,709	26,168
EBITDA	77,082	57,234	119,683		272,789	187,406
Add:
Long term incentive compensation expense (recovery)	(7,503)	3,004	3,996		1,351	9,867
Other expense (income)	(192)	347	80		66	992
Post closure wind-down costs and losses (recoveries)	-	(39)	-		4	(26)
Adjusted EBITDA	$69,387	$60,546	$123,759		$274,210	$198,239
Sales	$570,486	$489,169	$619,893		$1,718,023	$1,457,325
Adjusted EBITDA margin	12.2%	12.4%	20.0%		16.0%	13.6%
Net debt to invested capital
Net debt
Total debt	$258,900	$249,600	$263,360		$258,900	$249,600
Cash and cash equivalents	(165,553)	(71,813)	(228,945)		(165,553)	(71,813)
Marketable securities	(89,547)	(921)	-		(89,547)	(921)
Total net debt	$3,800	$176,866	$34,415		$3,800	$176,866
Invested capital
Net debt	$3,800	$176,866	$34,415		$3,800	$176,866
Shareholders' equity	985,316	817,676	977,294		985,316	817,676
Total invested capital	$989,116	$994,542	$1,011,709		$989,116	$994,542
Net debt to invested capital(1)	0.4%	17.8%	3.4%		0.4%	17.8%
Operating cash flow per share (before working capital changes)
Cash provided by operating activities	$84,956	$60,977	$133,729		$237,196	$171,475
Cash used in (generated from) operating working capital	(15,223)	(3,474)	(10,579)		31,171	19,028
Operating cash flow (before working capital changes)	$69,733	$57,503	$123,150		$268,367	$190,503
Weighted average number of shares - basic ('000)	69,908	70,030	70,038		69,993	70,030
Operating cash flow per share (before working capital changes)	$1.00	$0.82	$1.76		$3.83	$2.72
Annualized return on invested capital
Adjusted EBITDA	$69,387	$60,546	$123,759		$274,210	$198,239
Invested capital, beginning of period	$1,011,709	$1,031,291	$1,028,240		$973,488	$1,076,218
Invested capital, end of period	989,116	994,542	1,011,709		989,116	994,542
Average invested capital	$1,000,413	$1,012,917	$1,019,975		$981,302	$1,035,380
Adjusted EBITDA divided by average invested capital	6.9%	6.0%	12.1%		27.9%	19.1%
Annualization factor	4.0	4.0	4.0		1.33	1.33
Annualized return on invested capital	27.7%	23.9%	48.5%		37.3%	25.5%
Notes:
(1)    Net debt to invested capital as of the period end.

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three and nine months ended September 30, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars except earnings per share)			Three Months			Three Months				Nine Months				Nine Months
			Sep. 30, 2018			Sep. 30, 2017				Sep. 30, 2018				Sep. 30, 2017
Sales Costs and expenses:			$	570,486		$	489,169			$	1,718,023			$	1,457,325
	Production			472,354			407,222				1,359,291				1,205,504
	Selling and administration			12,825			11,936				40,850				36,817
	Long term incentive compensation expense (recovery)			(7,503	)		3,004				1,351				9,867
	U.S. countervailing and anti-dumping duty deposits			15,920			9,426				43,676				16,739
	Depreciation of plant and equipment			20,071			18,836				60,990				58,406
	Depletion and amortization of timber, roads and other			9,715			10,435				27,482				26,756
				523,382			460,859				1,533,640				1,354,089
Operating earnings before write-downs and restructuring				47,104			28,310				184,383				103,236
Capital asset write-downs and restructuring costs (recovery)				5,848			(21		)		10,753				1,781
Operating earnings				41,256			28,331				173,630				101,455
Finance costs				(2,465	)		(3,294		)		(8,156		)		(10,891		)
Other foreign exchange gain (loss)				(1,847	)		(1,353		)		144				(2,447		)
Other expense				192			(347		)		(66		)		(992		)
				(4,120	)		(4,994		)		(8,078		)		(14,330		)
Earnings before income taxes				37,136			23,337				165,552				87,125
Income tax expense:
	Current			663			22				3,000				708
	Deferred			8,381			6,537				37,709				25,460
				9,044			6,559				40,709				26,168
Net earnings			$	28,092		$	16,778			$	124,843			$	60,957
Net earnings per share, basic and diluted			$	0.40		$	0.24			$	1.78			$	0.87

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended September 30, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)		Three Months			Three Months			Nine Months			Nine Months
		Sep. 30, 2018			Sep. 30, 2017			Sep. 30, 2018			Sep. 30, 2017
Net earnings		$	28,092		$	16,778		$	124,843		$	60,957
Other comprehensive income (loss):
Items that will not be recycled to Net earnings:
	Defined benefit plan actuarial gain, net of tax		957			1,192			2,846			794
Items that are or may be recycled to Net earnings:
	Foreign currency translation differences for
	foreign operations, net of tax		(9,289	)		(16,589	)		14,688			(31,151	)
	Loss in fair value of interest rate swaps		-			-			-			(11	)
	Total items that are or may be recycled to Net earnings		(9,289	)		(16,589	)		14,688			(31,162	)
Total other comprehensive income (loss), net of tax			(8,332	)		(15,397	)		17,534			(30,368	)
Comprehensive income		$	19,760		$	1,381		$	142,377		$	30,589

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)				Three Months			Three Months			Nine Months			Nine Months
				Sep. 30, 2018			Sep. 30, 2017			Sep. 30, 2018			Sep. 30, 2017
Cash provided by (used in): Operating activities:
	Net earnings			$	28,092		$	16,778		$	124,843		$	60,957
	Items not involving cash:
			Depreciation of plant and equipment		20,071			18,836			60,990			58,406
			Depletion and amortization of timber, roads and other		9,715			10,435			27,482			26,756
			Income tax expense		9,044			6,559			40,709			26,168
			Finance costs		2,465			3,294			8,156			10,891
			Other assets		241			(252	)		(176	)		(70	)
			Reforestation liability		(2,111	)		(522	)		(684	)		1,787
			Provisions and other liabilities		(3,724	)		2,178			(4,180	)		4,225
			Stock options		212			159			558			420
			Write-down of plant, equipment and intangibles		5,823			-			10,687			-
			Unrealized foreign exchange loss (gain)		97			(2	)		(84	)		(11	)
			Other expense (income)		(192	)		40			66			974
					69,733			57,503			268,367			190,503
	Cash generated from (used in) operating working capital:
			Trade accounts receivable and other		20,738			(8,785	)		(3,232	)		(21,041	)
			Inventories		951			10,417			(30,975	)		(5,255	)
			Prepayments		(560	)		(1,011	)		(3,344	)		(1,430	)
			Trade accounts payable and provisions		(3,952	)		3,576			9,656			9,841
			Income taxes paid		(1,954	)		(723	)		(3,276	)		(1,143	)
					84,956			60,977			237,196			171,475
Investing activities:
		Additions to property, plant and equipment			(28,968	)		(19,805	)		(56,133	)		(42,957	)
		Additions to roads and bridges			(9,473	)		(8,608	)		(23,641	)		(25,139	)
		Additions to timber licences and other intangible assets			(40	)		(461	)		(90	)		(1,826	)
		Proceeds on disposal of property, plant and equipment			324			63			509			461
		Net proceeds from (additions to) investments and other assets			(93,354	)		2,805			(106,919	)		2,653
					(131,511	)		(26,006	)		(186,274	)		(66,808	)
Financing activities:
		Issuance of share capital, net of expenses			-			-			143			-
		Repurchase of share capital			(11,950	)		-			(11,950	)		-
		Interest payments			(2,788	)		(2,832	)		(7,902	)		(9,585	)
		Debt refinancing costs			(67	)		(615	)		(70	)		(785	)
		Change in operating line components of long term debt			-			2			(1	)		(63	)
		Additions to long term debt			155,909			-			155,909			76,107
		Repayments of long term debt			(155,797	)		-			(155,797	)		(116,260	)
					(14,693	)		(3,445	)		(19,668	)		(50,586	)
Foreign exchange gain (loss) on cash and
	cash equivalents held in a foreign currency				(2,144	)		(1,001	)		2,699			(1,538	)
Increase (decrease) in cash					(63,392	)		30,525			33,953			52,543
Cash and cash equivalents, beginning of period					228,945			41,288			131,600			19,270
Cash and cash equivalents, end of period				$	165,553		$	71,813		$	165,553		$	71,813

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2018 and December 31, 2017 (unaudited)
(thousands of Canadian Dollars)
		Sep. 30, 2018			Dec. 31, 2017
Assets
Current assets:
	Cash and cash equivalents	$	165,553		$	131,600
	Marketable securities		89,547			-
	Trade accounts receivable and other		117,593			112,470
	Income taxes receivable		1,636			1,289
	Inventories		199,294			165,156
	Prepayments		16,363			12,562
			589,986			423,077
Employee future benefits			3,497			502
Deposits and other assets			22,712			6,404
Property, plant and equipment			670,173			670,830
Roads and bridges			27,427			24,092
Timber licences			64,794			66,589
Other intangible assets			8,877			14,170
Goodwill			151,354			147,081
Deferred income taxes			653			251
		$	1,539,473		$	1,352,996
Liabilities and Shareholders’ Equity
Current liabilities:
	Trade accounts payable and provisions	$	164,066		$	152,854
	Reforestation liability		13,975			12,873
	Income taxes payable		251			224
			178,292			165,951
Reforestation liability			27,306			27,535
Long term debt			258,900			250,900
Employee future benefits			8,170			8,249
Provisions and other liabilities			22,724			26,976
Deferred income taxes			58,765			19,197
Equity:
	Share capital		550,864			555,388
	Contributed surplus		3,662			8,582
	Translation reserve		55,408			40,720
	Retained earnings		375,382			249,498
			985,316			854,188
		$	1,539,473		$	1,352,996

Approved on behalf of the Board of Directors: 

	“L. Sauder”	“Thomas V. Milroy”
	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, cyber-security measures, 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 3.1 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 Q3’18 are available at www.sedar.com and www.interfor.com. 

There will be a conference call on Friday, November 9, 2018 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2018 financial results.

The dial-in number is 1-866-559-8291.  The conference call will also be recorded for those unable to join in for the live discussion, and will be available until December 9, 2018.  The number to call is 1-855-859-2056, Passcode 7288847.

For further information:
Martin L. Juravsky, Senior Vice President and Chief Financial Officer
(604) 689-6873