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Interfor Reports Q4’20 Results

/EIN News/ -- EBITDA1 of $249 million on Sales of $662 million
Net Cash Position and Available Liquidity of $788 million

BURNABY, British Columbia, Feb. 04, 2021 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded Net earnings in Q4’20 of $149.1 million, or $2.24 per share, compared to $121.6 million, or $1.81 per share in Q3’20 and Net loss of $41.7 million, or $0.62 per share in Q4’19.  Adjusted net earnings in Q4’20 was $164.7 million compared to $140.0 million in Q3’20 and Adjusted net loss of $17.4 million in Q4’19.

Adjusted EBITDA was a record $248.6 million on sales of $662.3 million in Q4’20 versus $221.7 million on sales of $644.9 million in Q3’20.

Interfor recorded Net earnings of $280.3 million, or $4.18 per share, in 2020, compared to Net loss of $103.8 million, or $1.54 per share in 2019.  Adjusted EBITDA was $549.7 million on sales of $2.2 billion.

Notable items in the quarter:

• Strong Free Cash Flow Generation

  • Interfor generated $205.0 million of cash flow from operations before changes in working capital, or $3.07 per share, and an additional $24.9 million of cash from reduced working capital. 
  • Capital spending was $36.0 million, including $21.7 million on high-return discretionary projects primarily in the U.S. South. US$96.1 million has been spent on the Company’s Phase II strategic capital plan through December 31, 2020.
  • Net debt ended the quarter at $(75.4) million, or (7.5)% of invested capital, resulting in available liquidity of $787.5 million. 

• Seasonally Robust Lumber Market

  • Interfor’s average selling price was $842 per mfbm, down $68 per mfbm versus record levels in Q3’20.  Movements in key benchmark prices were mixed compared to Q3’20 as the SYP Composite and Western SPF Composite benchmarks decreased by US$145 and US$59 to US$603 and US$652 per mfbm, respectively, while the KD H-F Stud 2x4 9’ benchmark increased by US$43 to US$807 per mfbm.

• Production Increased to Meet Demand

  • Total lumber production in Q4’20 was 687 million board feet, representing an increase of 45 million board feet quarter-over-quarter.  The U.S. South and U.S. Northwest regions accounted for 361 million board feet and 136 million board feet, respectively, compared to 331 million board feet and 118 million board feet in Q3’20.  Production in the B.C. region decreased to 190 million board feet from 193 million board feet in the preceding quarter.
  • Total lumber shipments were 683 million board feet, including agency and wholesale volumes, or 65 million board feet higher than Q3’20.

• Softwood Lumber Duties Rate Adjustment

  • In Q4'20, the U.S. Department of Commerce published the final rates for countervailing (“CV”) and anti-dumping (“AD”) duties based on the results of its first administrative review of shipments for the years ended December 31, 2017 and 2018.  The final combined rates for 2017 and 2018 were 8.83% and 8.99% respectively, compared to the cash deposit rate of 20.23%.  To reflect lower amended final rates, Interfor recorded a $38.4 million reduction to duties expense in Q4'20.

    Effective December 2020, the final rate of 8.99% was applied to new lumber shipments.
  • Cumulative duties of US$134.0 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S.  Except for US$32.9 million in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense.

1 Refer to Adjusted EBITDA in the Non-GAAP Measures section

Normal Course Issuer Bid (“NCIB”)

On November 5, 2020, the Company announced a NCIB commencing on November 11, 2020 and ending on November 10, 2021, for the purchase of up to 5,981,751 common shares. During Q4 2020, Interfor purchased 1,327,420 common shares under the Company’s NCIB for total consideration of $24.4 million.

The Company believes that, from time to time, the market price of its common shares may be attractive and their purchase would represent a prudent allocation of capital.

Outlook

North American lumber markets over the near term are expected to remain robust and above historical trends, albeit volatile, as relatively low levels of lumber inventories industry-wide combined with demand ahead of the 2021 home building and renovation season put pressure on available lumber supply from manufacturers.

Interfor expects lumber demand to continue to grow over the mid-term, as repair and renovation activities and U.S. housing starts benefit from favourable underlying economic fundamentals and trends.  

Interfor’s strategy of maintaining a diversified portfolio of operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle.   

While uncertainty remains as to the duration and extent of the economic impact from the COVID-19 pandemic, Interfor is well positioned with its strong balance sheet and significant available liquidity.

Financial and Operating Highlights1 

    For the three months ended
       
    Dec. 31   Dec. 31   Sept. 30   For the year ended Dec. 31
 
  Unit 2020   2019   2020   2020   2019   20182  
               
Financial Highlights3              
Total sales $MM 662.3   456.8   644.9   2,183.6   1,875.8   2,186.6  
Lumber $MM 575.0   385.2   562.4   1,838.8   1,576.1   1,841.0  
Logs, residual products and other $MM 87.3   71.6   82.5   344.8   299.7   345.6  
Operating earnings (loss) $MM 203.2   (49.0 ) 171.4   402.5   (128.8 ) 157.9  
Net earnings (loss) $MM 149.1   (41.7 ) 121.6   280.3   (103.8 ) 111.1  
Net earnings (loss) per share, basic $/share 2.24   (0.62 ) 1.81   4.18   (1.54 ) 1.59  
Adjusted net earnings (loss)4 $MM 164.7   (17.4 ) 140.0   316.1   (58.1 ) 113.5  
Adjusted net earnings (loss) per share, basic4 $/share 2.47   (0.26 ) 2.08   4.71   (0.86 ) 1.63  
Operating cash flow per share (before working capital changes)4 $/share 3.07   0.24   3.19   7.39   0.68   4.12  
Adjusted EBITDA4 $MM 248.6   17.6   221.7   549.7   63.4   291.6  
Adjusted EBITDA margin4 % 37.5 % 3.9 % 34.4 % 25.2 % 3.4 % 13.3 %
               
Total assets $MM 1,843.2   1,341.9   1,731.9   1,843.2   1,341.9   1,565.3  
Total debt $MM 382.0   259.8   400.2   382.0   259.8   272.8  
Net debt4 $MM (75.4 ) 224.9   88.7   (75.4 ) 224.9   63.8  
Net debt to invested capital4 % (7.5 )% 21.3 % 8.3 % (7.5 )% 21.3 % 6.2 %
Annualized return on invested capital4 % 95.8 % 6.6 % 81.3 % 53.4 % 6.1 % 29.1 %
               
Operating Highlights              
Lumber production million fbm 687   668   642   2,377   2,646   2,635  
Total lumber sales million fbm 683   681   618   2,441   2,668   2,680  
Lumber sales - Interfor produced million fbm 675   671   609   2,404   2,626   2,638  
Lumber sales - wholesale and commission million fbm 8   10   9   37   42   42  
Lumber - average selling price5 $/thousand fbm 842   566   910   753   591   687  
               
Average USD/CAD exchange rate6 1 USD in CAD 1.3030   1.3200   1.3321   1.3415   1.3269   1.2957  
Closing USD/CAD exchange rate6 1 USD in CAD 1.2732   1.2988   1.3339   1.2732   1.2988   1.3642  
               

Notes:

  1. Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
  2. Financial information has been restated for implementation of IFRS 16, Leases.
  3. Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
  4. 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.
  5. Gross sales before duties.
  6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s Net debt at December 31, 2020 was $(75.4) million, or (7.5)% of invested capital, representing a decrease of $300.3 million from the level of Net debt at December 31, 2019. 

As at December 31, 2020 the Company had net working capital of $563.4 million and available liquidity of $787.5 million, based on the full borrowing capacity under its $350 million Revolving Term Line.

The Revolving Term Line and Senior Secured Notes are subject to financial covenants, including net debt to total capitalization ratios, and an EBITDA interest coverage ratio.  

Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future. 

  For the three months ended
  For the year ended
 
  Dec. 31,
  Dec. 31,
  Sept. 30,
  Dec. 31,
  Dec. 31,
 
Thousands of Dollars   2020     2019     2020     2020     2019  
           
Net debt          
Net debt, period opening $ 88,705   $ 212,674   $ 239,114   $ 224,860   $ 63,825  
Issuance of Senior Secure Notes   -     -     -     140,770     -  
Term Line net drawings (repayments)   -     (1 )   (23 )   (82 )   754  
Impact on U.S. Dollar denominated debt from strengthening CAD   (18,210 )   (5,099 )   (8,647 )   (18,488 )   (13,834 )
Decrease (increase) in cash and cash equivalents   (165,294 )   16,994     (144,849 )   (450,767 )   127,659  
Decrease in marketable securities   -     -     -     -     41,766  
Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening CAD   19,367     292     3,110     28,275     4,690  
Net debt, period ending $ (75,432 ) $ 224,860   $ 88,705   $ (75,432 ) $ 224,860  

On March 26, 2020, the Company issued US$50,000,000 of Series F Senior Secured Notes, bearing interest at 3.34%, and US$50,000,000 of Series G Senior Secured Notes, bearing interest at 3.25%. Each series of these Senior Secured Notes have equal payments of US$16,667,000 due on each of March 26, 2028, 2029 and on maturity in 2030.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of December 31, 2020:

  Revolving Senior  
  Term Secured  
Thousands of Canadian Dollars Line Notes Total
Available line of credit and maximum borrowing available $ 350,000 $ 381,960 $ 731,960
Less:      
Drawings   -   381,960   381,960
Outstanding letters of credit included in line utilization   19,887   -   19,887
Unused portion of facility $ 330,113 $ -   330,113
Add:      
Cash and cash equivalents       457,392
Available liquidity at December 31, 2020     $ 787,505

Interfor’s Revolving Term Line matures in March 2024 and its Senior Secured Notes have maturities principally in the years 2024-2030.

As of December 31, 2020, the Company had commitments for capital expenditures totaling $70.1 million for both maintenance and discretionary capital projects.

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, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized 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 audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

  For the three months ended
       
Thousands of Canadian Dollars except number of shares Dec. 31
  Dec. 31
  Sept. 30
  For the year ended Dec.31
 
and per share amounts   2020     2019     2020     2020     2019     20181  
             
Adjusted Net Earnings (Loss)            
Net earnings (loss) $ 149,148   $ (41,676 ) $ 121,604   $ 280,296   $ (103,785 ) $ 111,058  
Add:            
Asset and goodwill write-downs and restructuring costs   1,793     30,416     12,985     15,264     63,982     15,304  
Other foreign exchange loss (gain)   8,162     510     2,907     16,881     275     (3,474 )
Long term incentive compensation expense (recovery)   10,254     1,265     5,576     12,513     3,446     (7,829 )
Other (income) expense   92     298     43     (336 )   (5,925 )   (1,188 )
Post closure wind-down costs   949     -     3,085     4,034     -     4  
Income tax effect of above adjustments   (5,652 )   (8,241 )   (6,206 )   (12,527 )   (16,117 )   (396 )
Adjusted net earnings (loss) $ 164,746   $ (17,428 ) $ 139,994   $ 316,125   $ (58,124 ) $ 113,479  
Weighted average number of shares - basic ('000)   66,687     67,257     67,270     67,119     67,277     69,713  
Adjusted net earnings (loss) per share $ 2.47   $ (0.26 ) $ 2.08   $ 4.71   $ (0.86 ) $ 1.63  
             
Adjusted EBITDA            
Net earnings (loss) $ 149,148   $ (41,676 ) $ 121,604   $ 280,296   $ (103,785 ) $ 111,058  
Add:            
Depreciation of plant and equipment   21,947     20,711     20,850     78,459     80,438     80,065  
Depletion and amortization of timber, roads and other   10,511     14,214     7,922     37,071     44,294     46,148  
Asset and goodwill write-downs and restructuring costs   1,793     30,416     12,985     15,264     63,982     15,304  
Finance costs   1,891     3,740     4,907     16,079     15,024     12,452  
Other foreign exchange loss (gain)   8,162     510     2,907     16,881     275     (3,474 )
Income tax expense (recovery)   43,889     (11,851 )   41,916     89,573     (34,359 )   39,092  
EBITDA   237,341     16,064     213,091     533,623     65,869     300,645  
Add:            
Long term incentive compensation expense (recovery)   10,254     1,265     5,576     12,513     3,446     (7,829 )
Other (income) expense   92     298     43     (336 )   (5,925 )   (1,188 )
Post closure wind-down costs   947     -     2,967     3,914     -     4  
Adjusted EBITDA $ 248,634   $ 17,627   $ 221,677   $ 549,714   $ 63,390   $ 291,632  
Sales $ 662,301   $ 456,819   $ 644,884   $ 2,183,609   $ 1,875,821   $ 2,186,567  
Adjusted EBITDA margin   37.5 %   3.9 %   34.4 %   25.2 %   3.4 %   13.3 %
             
Net debt to invested capital            
Net debt            
Total debt $ 381,960   $ 259,760   $ 400,170   $ 381,960   $ 259,760   $ 272,840  
Cash and cash equivalents   (457,392 )   (34,900 )   (311,465 )   (457,392 )   (34,900 )   (166,152 )
Marketable securities   -     -     -     -     -     (42,863 )
Total net debt $ (75,432 ) $ 224,860   $ 88,705   $ (75,432 ) $ 224,860   $ 63,825  
Invested capital            
Net debt $ (75,432 ) $ 224,860   $ 88,705   $ (75,432 ) $ 224,860   $ 63,825  
Shareholders' equity   1,080,312     830,982     983,225     1,080,312     830,982     968,766  
Total invested capital $ 1,004,880   $ 1,055,842   $ 1,071,930   $ 1,004,880   $ 1,055,842   $ 1,032,591  
Net debt to invested capital2   (7.5 )%   21.3 %   8.3 %   (7.5 )%   21.3 %   6.2 %
             
Operating cash flow per share (before working capital changes)            
Cash provided by operating activities $ 229,947   $ 24,642   $ 175,492   $ 526,784   $ 28,252   $ 265,612  
Cash used in (generated from) operating working capital   (24,929 )   (8,334 )   39,346     (30,942 )   17,322     21,457  
Operating cash flow (before working capital changes) $ 205,018   $ 16,308   $ 214,838   $ 495,842   $ 45,574   $ 287,069  
Weighted average number of shares - basic ('000)   66,687     67,257     67,270     67,119     67,277     69,713  
Operating cash flow per share (before working capital changes) $ 3.07   $ 0.24   $ 3.19   $ 7.39   $ 0.68   $ 4.12  
             
Annualized return on invested capital            
Adjusted EBITDA $ 248,634   $ 17,627   $ 221,677   $ 549,714   $ 63,390   $ 291,632  
Invested capital, beginning of period $ 1,071,930   $ 1,093,528   $ 1,108,557   $ 1,055,842   $ 1,032,591   $ 968,852  
Invested capital, end of period   1,004,880     1,055,842     1,071,930     1,004,880     1,055,842     1,032,591  
Average invested capital $ 1,038,405   $ 1,074,685   $ 1,090,244   $ 1,030,361   $ 1,044,217   $ 1,000,722  
Adjusted EBITDA divided by average invested capital   23.9 %   1.6 %   20.3 %   53.4 %   6.1 %   29.1 %
Annualization factor   4.0     4.0     4.0     1.0     1.0     1.0  
Annualized return on invested capital   95.8 %   6.6 %   81.3 %   53.4 %   6.1 %   29.1 %

Notes:

  1. Financial information has been restated for implementation of IFRS 16, Leases.
  2. Net debt to invested capital as of the period end.
 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the three months and year ended December 31, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars except earnings per share) Three Months
  Three Months
  Year
  Year
 
    Dec. 31, 2020
  Dec. 31, 2019
  Dec. 31, 2020
  Dec. 31, 2019
 
           
Sales $ 662,301   $ 456,819   $ 2,183,609   $ 1,875,821  
Costs and expenses:        
  Production   428,208     418,954     1,583,033     1,728,394  
  Selling and administration   10,297     8,992     40,961     38,748  
  Long term incentive compensation expense   10,254     1,265     12,513     3,446  
  U.S. countervailing and anti-dumping duty deposits (receivable)   (23,891 )   11,246     13,815     45,289  
  Depreciation of plant and equipment   21,947     20,711     78,459     80,438  
  Depletion and amortization of timber, roads and other   10,511     14,214     37,071     44,294  
      457,326     475,382     1,765,852     1,940,609  
         
Operating earnings (loss) before write-downs and        
  restructuring costs   204,975     (18,563 )   417,757     (64,788 )
         
Asset and goodwill write-downs and restructuring costs   (1,793 )   (30,416 )   (15,264 )   (63,982 )
Operating earnings (loss)   203,182     (48,979 )   402,493     (128,770 )
         
Finance costs   (1,891 )   (3,740 )   (16,079 )   (15,024 )
Other foreign exchange loss   (8,162 )   (510 )   (16,881 )   (275 )
Other income (expense)   (92 )   (298 )   336     5,925  
    (10,145 )   (4,548 )   (32,624 )   (9,374 )
           
Earnings (loss) before income taxes   193,037     (53,527 )   369,869     (138,144 )
           
Income tax expense (recovery):        
  Current   5,392     (783 )   7,043     26  
  Deferred   38,497     (11,068 )   82,530     (34,385 )
    43,889     (11,851 )   89,573     (34,359 )
           
Net earnings (loss) $ 149,148   $ (41,676 ) $ 280,296   $ (103,785 )
         
Net earnings (loss) per share, basic and diluted $ 2.24   $ (0.62 ) $ 4.18   $ (1.54 )


 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three months and year ended December 31, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars) Three Months
  Three Months
  Year
  Year
 
    Dec. 31, 2020
  Dec. 31, 2019
  Dec. 31, 2020
  Dec. 31, 2019
 
         
Net earnings (loss)

 
$ 149,148   $ (41,676 ) $ 280,296   $ (103,785 )
       
Other comprehensive income (loss):        
Items that will not be recycled to Net earnings (loss):        
  Defined benefit plan actuarial gain (loss), net of tax   458     1,621     (907 )   603  
           
Items that are or may be recycled to Net earnings (loss):        
  Foreign currency translation differences for        
    foreign operations, net of tax   (28,569 )   (10,053 )   (6,913 )   (27,634 )
Total other comprehensive loss, net of tax   (28,111 )   (8,432 )   (7,820 )   (27,031 )
         
Comprehensive income (loss) $ 121,037   $ (50,108 ) $ 272,476   $ (130,816 )


 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months and year ended December 31, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars)   Three Months
  Three Months
  Year   Year  
      Dec. 31, 2020
  Dec. 31, 2019
  Dec. 31, 2020
  Dec. 31, 2019
 
         
Cash provided by (used in):        
Operating activities:        
  Net earnings (loss) $ 149,148   $ (41,676 ) $ 280,296   $ (103,785 )
  Items not involving cash:        
    Depreciation of plant and equipment   21,947     20,711     78,459     80,438  
    Depletion and amortization of timber, roads and other   10,511     14,214     37,071     44,294  
    Income tax expense (recovery)   43,889     (11,851 )   89,573     (34,359 )
    Finance costs   1,891     3,740     16,079     15,024  
    Other assets   (37,881 )   1,371     (37,040 )   1,894  
    Reforestation liability   (61 )   1,291     (2,050 )   (1,286 )
    Provisions and other liabilities   6,198     (1,586 )   5,536     3,620  
    Stock options   253     151     866     692  
    Write-down of plant, equipment, goodwill and other   -     29,100     9,754     45,494  
    Unrealized foreign exchange loss   9,031     544     17,634     554  
    Gain on lease modifications   (75 )   (1,140 )   (308 )   (1,140 )
    Other expense (income)   167     1,439     (28 )   (5,866 )
      205,018     16,308     495,842     45,574  
  Cash generated from (used in) operating working capital:        
    Trade accounts receivable and other   70,342     26,706     (30,206 )   1,517  
    Inventories   (35,380 )   (5,450 )   22,024     22,632  
    Prepayments   (2,734 )   2,639     (1,036 )   (4,443 )
    Trade accounts payable and provisions   (5,714 )   (15,851 )   40,992     (36,446 )
    Income taxes paid   (1,585 )   290     (832 )   (582 )
    229,947     24,642     526,784     28,252  
         
Investing activities:        
  Additions to property, plant and equipment   (29,990 )   (31,864 )   (95,714 )   (158,645 )
  Additions to roads and bridges   (5,840 )   (5,175 )   (14,669 )   (22,447 )
  Additions to timber licences and other intangible assets   (160 )   -     (160 )   (77 )
  Acquisition of timber license, roads and other assets        
   net of assumed liabilities   -     -     (56,606 )   -  
  Proceeds on disposal of property, plant and equipment and other   3,896     431     4,992     8,880  
  Net proceeds from (additions to) marketable securities,        
   deposits and other assets   (585 )   1,208     (462 )   48,338  
    (32,679 )   (35,400 )   (162,619 )   (123,951 )
           
Financing activities:        
  Issuance of share capital, net of expenses   227     85     418     165  
  Share repurchases   (24,430 )   -     (24,430 )   (7,825 )
  Interest payments   (4,534 )   (3,345 )   (17,626 )   (12,193 )
  Lease payments   (3,255 )   (2,946 )   (12,315 )   (11,638 )
  Debt refinancing costs   18     (29 )   (133 )   (1,223 )
  Operating line net drawings (repayments)   -     (1 )   (82 )   4  
  Additions to long term debt   -     -     140,770     197,925  
  Repayments of long term debt   -     -     -     (197,175 )
    (31,974 )   (6,236 )   86,602     (31,960 )
           
Foreign exchange loss on cash and cash        
  equivalents held in a foreign currency   (19,367 )   (292 )   (28,275 )   (3,593 )
Increase (decrease) in cash   145,927     (17,286 )   422,492     (131,252 )
         
Cash and cash equivalents, beginning of period   311,465     52,186     34,900     166,152  
         
Cash and cash equivalents, end of period $ 457,392   $ 34,900   $ 457,392   $ 34,900  


 
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars)    
  Dec. 31, 2020  Dec. 31, 2019 
       
Assets    
Current assets:    
  Cash and cash equivalents $ 457,392  $ 34,900 
  Trade accounts receivable and other   117,371    86,608 
  Income taxes receivable   169    1,995 
  Inventories   160,188    181,577 
  Prepayments   17,970    20,449 
      753,090    325,529 
     
Employee future benefits   106    673 
Deposits and other assets   48,957    9,296 
Right of use assets   35,471    32,780 
Property, plant and equipment   729,163    739,515 
Roads and bridges   22,379    24,353 
Timber licences   114,953    60,596 
Goodwill and other intangible assets   138,838    142,214 
Deferred income taxes   230    6,961 
     
  $ 1,843,187  $ 1,341,917 
     
Liabilities and Shareholders’ Equity    
Current liabilities:    
  Trade accounts payable and provisions $ 150,509  $ 114,358 
  Current portion of long term debt   6,897   
  Reforestation liability   16,181    13,021 
  Lease liabilities   11,745    10,105 
  Income taxes payable   4,394    163 
    189,726    137,647 
       
Reforestation liability   29,735    27,401 
Lease liabilities   28,541    27,718 
Long term debt   375,063    259,760 
Employee future benefits   11,137    11,843 
Provisions and other liabilities   26,637    18,957 
Deferred income taxes   102,036    27,609 
     
Equity:    
  Share capital   523,605    533,685 
  Contributed surplus   5,157    4,471 
  Translation reserve   49,846    56,759 
  Retained earnings   501,704    236,067 
     
      1,080,312    830,982 
       
  $ 1,843,187  $ 1,341,917 

Approved on behalf of the Board:

L. Sauder”  T.V. Milroy
Director  Director

FORWARD-LOOKING STATEMENTS

This release contains forward-looking information about the Company’s business outlook, objectives, plans, strategic priorities and other information that is not historical fact.  A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future.  Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy.  Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information.  Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s annual Management’s Discussion & Analysis under the heading “Risks and Uncertainties”, which is available on www.interfor.com and under Interfor’s profile on www.sedar.com.  Material factors and assumptions used to develop the forward-looking information in this report include volatility in the selling prices for lumber, logs and wood chips; the Company’s ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company’s allowable annual cut (“AAC”); claims by and treaty settlements with Indigenous peoples; the Company’s ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia (“B.C.”); environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crisis (such as the current COVID-19 pandemic).  Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release.  Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States.  The Company has annual production capacity of approximately 3.0 billion board feet and offers  a diverse line of lumber products to customers around the world.  For more information about Interfor, visit our website at www.interfor.com.

The Company’s 2020 audited consolidated financial statements and Management’s Discussion and Analysis are available at www.sedar.com and www.interfor.com

There will be a conference call on Friday, February 5, 2021 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its fourth quarter and fiscal 2020 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 March 5, 2021.  The number to call is 1-855-859-2056, Passcode 5389783.

For further information:
Richard Pozzebon, Senior Vice President and Chief Financial Officer
(604) 689-6800


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