Interfor Corporation
TSX : IFP

Interfor Corporation

February 11, 2016 18:04 ET

Interfor Posts Improved Results in Q4'15

Q4'15 Adjusted EBITDA of $35.8 Million Reflects Higher Prices and Progress on Key Business Initiatives; Thomas V. Milroy Appointed to Board of Directors

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2016) - INTERFOR CORPORATION ("Interfor" or the "Company") (TSX:IFP) recorded Adjusted EBITDA of $35.8 million in Q4'15 versus $11.5 million in Q3'15 and $37.4 million in Q4'14. The Company's results in Q4'15 reflect the benefits of higher prices and progress on a number of key business initiatives. Highlights for the quarter include:

  • Higher Lumber Prices

    • Key product benchmark prices strengthened throughout Q4'15 as the market adjusted to production curtailments in a number of regions, greater stability in Chinese demand and an extended fall buying period in North America due to favourable weather.

  • Weaker Canadian Dollar

    • The Canadian Dollar weakened against the U.S. Dollar, averaging $0.749 in Q4'15 versus $0.764 in Q3'15, resulting in favourable currency translations of U.S. Dollar revenues.

  • Castlegar Mill Re-Start

    • The Castlegar sawmill modernization project commenced start-up procedures on October 5th. Productivity and product quality were ahead of expectations throughout the quarter, resulting in a positive earnings contribution in Q4'15 versus a negative contribution in Q3'15.

  • Tacoma Sawmill Monetization

    • Monetization of the former Tacoma sawmill assets progressed well in Q4'15, with: (i) the sale of the remaining log and lumber inventories; (ii) a successful auction of machinery, equipment and parts; and (iii) the signing of an agreement to sell the mill property. Cash proceeds from the monetization of assets are expected to exceed the total of the operating losses, exit costs and remaining asset value associated with the facility, with the property sale expected to close in mid-2016 subject to customary closing conditions.

  • Free Cash Flow Generation and Debt Reduction with Increased Liquidity

    • Interfor generated $46.1 million in cash from operations after considering working capital changes. During Q4'15, the Company's net debt position expressed in U.S. Dollars dropped from US$344.5 million to US$326.8 million.

    • On February 9, 2016, Interfor extended the maturity dates of its Canadian Operating Line and Revolving Term Line to May 19, 2019, which improved liquidity and enhanced financial flexibility. At December 31, 2015, the Company's net debt to invested capital ratio was 38.4% and available liquidity would have been $147.0 million after considering the revised credit terms, versus $103.3 million at September 30, 2015.

In Q4'15, Interfor recorded sales of $411.4 million and a net loss of $3.5 million, or $0.05 per share, compared with net losses of $6.1 million and $5.2 million in Q3'15 and Q4'14, respectively. Adjusted net earnings in the fourth quarter were $5.5 million, or $0.08 per share, compared with an adjusted net loss of $15.4 million and adjusted net earnings of $10.2 million in Q3'15 and Q4'14, respectively.

Markets and Pricing

Each of the key benchmark prices for SYP East 2x4, Western SPF 2x4, and HF Stud 9' 2x4 rebounded from 2015 low points in September to post successive monthly gains through the end of 2015.

Market related production curtailments and severe weather events in the U.S. South impacted supply to the benefit of Southern Yellow Pine prices during the fourth quarter. The SYP East 2x4 benchmark rebounded from US$317 per mfbm in September, increasing significantly throughout Q4'15 to US$413 per mfbm in December. The average benchmark price for Q4'15 was US$400 per mfbm, or $69 per mfbm higher than Q3'15.

The HF Stud 9' 2x4 benchmark increased from US$274 per mfbm in September and gained throughout the fourth quarter to end the year at US$302 per mfbm in December. The average benchmark price for Q4'15 was US$294 per mfbm, or US$9 per mfbm lower than Q3'15.

The Western SPF 2x4 benchmark rebounded from US$245 per mfbm in September to US$269 per mfbm in December, with modest monthly gains throughout the fourth quarter. The average benchmark price for Q4'15 was US$263 per mfbm, or US$6 per mfbm lower than Q3'15.

Production

Lumber production of 568 million board feet in Q4'15 was 50 million board feet lower than the preceding quarter and 10 million board feet lower than Q4'14.

Production from the Company's nine U.S. South sawmills totaled 243 million board feet in Q4'15, down 44 million board feet compared to Q3'15. The lower production level in Q4'15 reflects temporary market-related adjustments to operating schedules across the U.S. South platform and severe weather events which impacted the Georgetown sawmill most significantly.

Canadian production totaled 186 million board feet in Q4'15, up 5 million board feet as compared to Q3'15. The increase in Canadian production primarily reflects the start-up of the Castlegar sawmill in the quarter partially offset by reduced operating hours at the other Interfor mills in the region. In Q4'15, Interfor shipped approximately 90 million board feet of lumber to U.S. markets from its B.C. sawmills, which represents approximately 15% of Interfor's total current quarterly production. Export duties applied pursuant to the Softwood Lumber Agreement ("SLA") expired on October 12, 2015. The SLA includes a standstill provision which precludes the U.S. from bringing trade action against Canadian softwood lumber producers for a 12 month period following expiry of the agreement. Export taxes on lumber shipments from Canada into the U.S. were negligible in Q4'15.

Production from the Company's U.S. Northwest operations totaled 139 million board feet in Q4'15, representing a decline of 11 million board feet from the prior quarter. This decline was due to fewer operating hours at each of the Company's four mills in the region.

Outlook

Interfor expects demand for lumber to continue to grow over the mid-term as the U.S. housing market recovers and market promotion efforts in North America and offshore take full effect. In addition, the Company is focused on a series of targeted initiatives related to margin improvement opportunities across its operations in both the U.S. and Canada that should contribute to Interfor's financial results.

Interfor's strategy of maintaining a diversified portfolio of lumber operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle. Interfor will continue its disciplined approach to production, cost control, inventory management and capital spending. At the same time, Interfor will remain alert to growth opportunities to position the Company for long term success.

Other

At its meeting today, the Interfor Board appointed Thomas V. Milroy of Toronto, Ontario as a director of the Company.

Mr. Milroy, who is 60, retired from the BMO Financial Group ("BMO") in January 2015. Over 21 years with BMO, Mr. Milroy held progressively senior positions with that firm's investment banking group, serving from March 2008 to December 2014 as CEO of BMO Capital Markets where he was responsible for all of BMO's business involving corporate, institutional and government clients globally.

Mr. Milroy's appointment brings the number of directors from nine to ten and was made in line with the Company's Board Succession Plan.

Mr. Milroy will stand for election as a director at the Company's Annual General Meeting in April.

Summary of Quarterly Results(1)
2015 2014
UnitQ4 Q3 Q2 Q1 Q4 Q3Q2Q1
Financial Performance (Unaudited)
Total sales $MM411.4 430.8 429.7 415.4 389.0 373.1390.2294.8
Lumber $MM325.0 343.3 352.2 340.7 318.6 303.0325.2230.4
Logs, residual products and other $MM86.4 87.5 77.5 74.7 70.4 70.165.064.4
Operating earnings (loss) $MM(6.3)(11.6)(25.8)7.8 (1.1)20.13.813.3
Net earnings (loss) $MM(3.5)(6.1)(20.6)(0.2)(5.2)11.07.427.5
Net earnings (loss) per share, basic and diluted $/share(0.05)(0.09)(0.29)(0.00)(0.08)0.160.110.43
Adjusted net earnings (loss)(2) $MM5.5 (15.4)(14.7)4.5 10.2 16.121.015.0
Adjusted net earnings (loss) per share, basic and diluted (2) $/share0.08 (0.22)(0.21)0.07 0.15 0.240.310.24
Adjusted EBITDA(2) $MM35.8 11.5 12.7 31.8 37.4 45.447.339.2
Shares outstanding - end of period million70.0 70.0 70.0 70.0 66.7 66.766.766.7
Shares outstanding - weighted average million70.0 70.0 70.0 67.8 66.7 66.766.763.8
Operating Performance
Lumber production million fbm568 618 672 639 578 567582495
Total lumber sales million fbm615 686 719 632 620 595628439
Lumber sales - Interfor produced million fbm586 663 688 607 605 581607424
Lumber sales - wholesale and commission million fbm29 23 31 25 15 142115
Lumber - average selling price (3) $/thousand fbm529 500 490 539 514 509518525
Average USD/CAD exchange rate (4) 1 USD in CAD1.3354 1.3089 1.2297 1.2412 1.1350 1.08901.09051.1033
Closing USD/CAD exchange rate (4) 1 USD in CAD1.3840 1.3394 1.2474 1.2683 1.1601 1.12081.06761.1053
Notes:
(1) Figures in this table may not add due to rounding.
(2) Refer to the Non-GAAP Measures section of this release for definitions and reconciliations 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.

Balance Sheet

Net debt at December 31, 2015 was $452.3 million, or 38.4% of invested capital, representing an increase of $249.8 million over the level of debt at December 31, 2014. Revaluation of U.S. Dollar denominated debt into Canadian Dollars resulted in an increase of $65.4 million in 2015 over 2014 due to a 19.3% decline in the Canadian Dollar against the U.S. Dollar. In Q4'15, the 3.3% decline in the Canadian Dollar against the U.S. Dollar resulted in an increase of $14.6 million in net debt, despite a decline of US$7.3 million in U.S. Dollar denominated borrowings.

For the 3 months ended
December 31,
For the year ended
December 31,
Thousands of dollars 2015 2014 2015 2014
Net debt
Net debt, period opening, CAD $ 461,474 $ 203,570 $ 202,553 $ 140,762
Net drawing (repayment) on credit facilities, CAD (19,207 ) (16,945 ) 182,949 59,428
Impact on USD denominated debt from weakening CAD 14,592 7,600 65,391 15,512
(Increase) decrease in cash and equivalents, CAD (4,556 ) 8,328 1,410 (13,149 )
Net debt, period ending, CAD $ 452,303 $ 202,553 $ 452,303 $ 202,553
Net debt components by currency
US Dollar debt, period opening, USD $ 345,957 $ 205,000 $ 190,000 $ 135,900
Net drawing (repayment) on credit facilities, USD (7,258 ) (15,000 ) 148,699 54,100
US Dollar debt, period ending, USD $ 338,699 $ 190,000 338,699 190,000
Spot rate, period end 1.3840 1.1601
US Dollar debt expressed in CAD 468,759 220,419
Cash and cash equivalents, CAD (16,456 ) (17,866 )
Net debt, period ending, CAD $ 452,303 $ 202,553

As at December 31, 2015, the Company had net working capital of $168.9 million and available liquidity of $112.1 million, including cash and borrowing capacity on operating and term facilities.

On February 9, 2016, the Company extended the maturity of its Operating Line and Revolving Term Line from February 27, 2017 to May 19, 2019. Certain other terms were also changed, resulting in an increase in the maximum borrowing available under the financing agreement. Based on the revised terms, available liquidity would have been $147.0 million as at December 31, 2015.

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.

Capital Resources

The following table summarizes Interfor's credit facilities and availability as of December 31, 2015:



Thousands of Canadian dollars

Operating
Line
Revolving
Term
Line
Senior
Secured
Notes
U.S.
Operating
Line


Total
Available line of credit $ 65,000 $ 200,000 $ 276,800 $ 69,200 $ 611,000
Maximum borrowing available $ 62,820 $ 183,723 $ 276,800 $ 69,200 $ 592,543
Less:
Drawings - 179,920 276,800 12,039 468,759
Outstanding letters of credit included in line utilization 9,396 - - 2,290 11,686
Unused portion of facility $ 53,424 $ 3,803 $ - $ 54,871 $ 112,098

As at December 31, 2015, maximum borrowings available under the Company's Operating Line and Revolving Term Line were restricted by a financial covenant in the underlying credit agreement. In the table above, this limitation has been applied to the Operating Line and Revolving Term Line limits.

As stated above, based on the revised terms, available liquidity would have been $147.0 million as at December 31, 2015.

As of December 31, 2015, the Company had commitments for capital expenditures totaling $7.8 million, related to 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, Pre-tax return on total assets and Net debt to 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 3 months
ended December 31,

For the year ended
December 31,
Thousands of Canadian dollars 2015 2014 2015 2014 2013
Adjusted Net Earnings
Net earnings (loss) (3,507 ) (5,187 ) (30,386 ) 40,690 42,239
Add:
Restructuring costs, capital asset and timber write-downs 2,866 857 12,829 24,129 371
Other foreign exchange loss (gain) (473 ) 1,646 1,651 2,651 1,250
Long term incentive compensation expense (recovery) 9,335 13,864 (5,431 ) 23,933 18,841
Other (income) expense (863 ) (3 ) (757 ) 37 (602 )
Beaver sawmill post-closure wind-down costs 6 367 365 1,083 -
Tacoma sawmill post-acquisition losses 698 - 11,009 - -
Income tax effect of above adjustments (2,564 ) (1,301 ) (9,311 ) (10,951 ) (1,432 )
Recognition of previously unrecognized deferred tax assets - - - (19,253 ) -
Adjusted net earnings (loss)(1) 5,498 10,243 (20,031 ) 62,319 60,667
Weighted average number of shares - basic and diluted ('000) 70,030 66,730 69,488 66,005 57,694
Adjusted net earnings (loss) per share(1) 0.08 0.15 (0.29 ) 0.94 1.05
Adjusted EBITDA
Net earnings (loss) (3,507 ) (5,187 ) (30,386 ) 40,690 42,239
Add:
Depreciation of plant and equipment 18,482 14,707 71,492 55,167 39,206
Depletion and amortization of timber, roads and other 10,734 8,699 37,478 28,912 23,061
Restructuring costs, capital asset and timber write-downs 2,866 857 12,829 24,129 371
Finance costs 5,459 2,268 17,569 8,915 9,069
Other foreign exchange loss (gain) (473 ) 1,646 1,651 2,651 1,250
Income tax expense (recovery) (6,943 ) 160 (24,017 ) (16,230 ) 555
EBITDA 26,618 23,150 86,616 144,234 115,751
Add:
Long term incentive compensation expense (recovery) 9,335 13,864 (5,431 ) 23,933 18,841
Other (income) expense (863 ) (3 ) (757 ) 37 (602 )
Beaver sawmill post-closure wind-down costs 6 363 363 1,075 -
Tacoma sawmill post-acquisition losses 698 - 10,928 - -
Adjusted EBITDA(1) 35,794 37,374 91,719 169,279 133,990
Pre-tax return on total assets
Operating earnings (loss) before restructuring costs (3,461 ) (259 ) (23,111 ) 60,192 52,882
Total assets(2) 1,383,751 1,058,346 1,229,160 946,325 728,083
Pre-tax return on total assets(3) (1.0 %) (0.1 %) (1.9 %) 6.4 % 7.3 %
Net debt to invested capital
Net debt
Total debt 468,759 220,419 468,759 220,419 145,479
Cash and cash equivalents (16,456 ) (17,866 ) (16,456 ) (17,866 ) (4,717 )
Total net debt 452,303 202,553 452,303 202,553 140,762
Invested capital
Net debt 452,303 202,553 452,303 202,553 140,762
Shareholders' equity 725,254 636,480 725,254 636,480 515,137
Total invested capital 1,177,557 839,033 1,177,557 839,033 655,899
Net debt to invested capital(4) 38.4 % 24.1 % 38.4 % 24.1 % 21.5 %
Notes:
(1) 2015 adjusted net earnings, adjusted net earnings per share and adjusted EBITDA have been revised for inclusion of Tacoma sawmill post-acquisition losses arising in Q1'15.
(2) Total assets at period beginning for three month periods; average of opening and closing total assets for twelve month periods.
(3) Annualized rate.
(4) Net debt to invested capital as of the period end.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the three months and years ended December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars except earnings per share) 3 Months
Dec. 31, 2015
3 Months
Dec. 31, 2014
Year
Dec. 31, 2015
Year
Dec. 31, 2014
Sales $ 411,411 $ 388,974 $ 1,687,375 $ 1,447,157
Costs and expenses:
Production 366,083 343,073 1,554,975 1,243,464
Selling and administration 10,236 8,890 46,756 35,489
Long term incentive compensation (recovery) expense 9,335 13,864 (5,431 ) 23,933
Export taxes 2 - 5,216 -
Depreciation of plant and equipment 18,482 14,707 71,492 55,167
Depletion and amortization of timber, roads and other 10,734 8,699 37,478 28,912
414,872 389,233 1,710,486 1,386,965
Operating earnings (loss) before restructuring costs (3,461 ) (259 ) (23,111 ) 60,192
Restructuring costs (2,866 ) (857 ) (12,829 ) (24,129 )
Operating earnings (loss) (6,327 ) (1,116 ) (35,940 ) 36,063
Finance costs (5,459 ) (2,268 ) (17,569 ) (8,915 )
Other foreign exchange gain (loss) 473 (1,646 ) (1,651 ) (2,651 )
Other expense 863 3 757 (37 )
(4,123 ) (3,911 ) (18,463 ) (11,603 )
Earnings (loss) before income taxes (10,450 ) (5,027 ) (54,403 ) 24,460
Income tax expense (recovery)
Current 304 134 614 1,342
Deferred (7,247 ) 26 (24,631 ) (17,572 )
(6,943 ) 160 (24,017 ) (16,230 )
Net earnings (loss) $ (3,507 ) $ (5,187 ) $ (30,386 ) $ 40,690
Net earnings (loss) per share, basic and diluted $ (0.05 ) $ (0.08 ) $ (0.44 ) $ 0.62
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months and years ended December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars) 3 Months
Dec. 31, 2015
3 Months
Dec. 31, 2014
Year
Dec. 31, 2015
Year
Dec. 31, 2014
Net earnings (loss) $ (3,507 ) $ (5,187 ) $ (30,386 ) $ 40,690
Other comprehensive income:
Items that will not be recycled to Net earnings (loss):
Defined benefit plan actuarial gain (loss) (611 ) 1,190 (1,005 ) (1,342 )
Income tax recovery - - 376 -
Total items that will not be recycled to Net earnings (loss) (611 ) 1,190 (629 ) (1,342 )
Items that are or may be recycled to Net earnings (loss):
Foreign currency translation differences - foreign operations 10,451 10,748 56,475 20,389
Gain (loss) in fair value of interest rate swaps 347 (145 ) (71 ) (34 )
Total items that are or may be recycled to Net earnings (loss) 10,798 10,603 56,404 20,355
Total other comprehensive income, net of tax 10,187 11,793 55,775 19,013
Total comprehensive income $ 6,680 $ 6,606 $ 25,389 $ 59,703
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months and years ended December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars) 3 Months
Dec. 31, 2015
3 Months
Dec. 31, 2014
Year
Dec. 31, 2015
Year
Dec. 31, 2014
Cash provided by (used in):
Operating activities:
Net earnings (loss) $ (3,507 ) $ (5,187 ) $ (30,386 ) $ 40,690
Items not involving cash:
Depreciation of plant and equipment 18,482 14,707 71,492 55,167
Depletion and amortization of timber, roads and other 10,734 8,699 37,478 28,912
Income tax expense (recovery) (6,943 ) 160 (24,017 ) (16,230 )
Finance costs 5,459 2,268 17,569 8,915
Other assets 112 409 639 986
Reforestation liability 1,472 1,890 1,612 1,910
Provisions and other liabilities 4,388 181 (8,252 ) (63 )
Stock options 34 - 189 -
Reversal of write-down of plant and equipment - - (1,195 ) -
Write-down of plant and equipment 2,672 - 2,812 20,468
Unrealized foreign exchange loss (gain) 4 1,860 (337 ) 2,191
Other (863 ) (4 ) (758 ) 46
32,044 24,983 66,846 142,992
Cash generated from (used in) operating working capital:
Trade accounts receivable and other 3,574 (7,827 ) 8,748 (8,628 )
Inventories 3,969 3,838 48,717 15,083
Prepayments 1,027 4,539 3,017 1,236
Trade accounts payable and provisions 5,865 9,676 (24,986 ) 14,185
Income taxes paid (330 ) (132 ) (965 ) (3,077 )
46,149 35,077 101,377 161,791
Investing activities:
Additions to property, plant and equipment (20,114 ) (17,452 ) (93,832 ) (48,922 )
Additions to logging roads (5,215 ) (6,875 ) (26,133 ) (26,656 )
Additions to timber and other intangible assets (123 ) (378 ) (1,500 ) (2,818 )
Proceeds on disposal of property, plant and equipment 7,867 286 12,509 1,926
Acquisitions - - (223,263 ) (124,421 )
Investments and other assets (1,345 ) (111 ) (1,033 ) (13 )
(18,930 ) (24,530 ) (333,252 ) (200,904 )
Financing activities:
Issuance of capital stock, net of share issue expenses - - 63,196 -
Interest payments (4,871 ) (1,988 ) (16,186 ) (7,122 )
Financing transaction costs (14 ) (21 ) (292 ) (757 )
Change in operating line components of long-term debt (19,208 ) - 10,057 (1,789 )
Additions to long term debt - 53,515 362,582 223,221
Repayments of long term debt - (70,460 ) (189,691 ) (162,004 )
(24,093 ) (18,954 ) 229,666 51,549
Foreign exchange gain on cash and cash equivalents
held in a foreign currency 1,430 79 799 713
Increase (decrease) in cash 4,556 (8,328 ) (1,410 ) 13,149
Cash and cash equivalents, beginning of period 11,900 26,194 17,866 4,717
Cash and cash equivalents, end of period $ 16,456 $ 17,866 $ 16,456 $ 17,866
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars) Dec. 31
2015
Dec. 31,
2014
Assets
Current assets:
Cash and cash equivalents $ 16,456 $ 17,866
Trade accounts receivable and other 95,218 80,283
Income taxes receivable 459 -
Inventories 155,740 148,668
Prepayments 15,512 12,175
Assets held for sale 27,836 -
311,221 258,992
Employee future benefits 1,570 2,520
Other investments and assets 3,191 2,972
Property, plant and equipment 777,590 541,378
Logging roads and bridges 20,611 22,244
Timber licences 72,429 79,024
Other intangible assets 23,601 24,397
Goodwill 160,914 136,996
Deferred income taxes 18,669 -
$ 1,389,796 $ 1,068,523
Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable and provisions $ 130,840 $ 139,153
Reforestation liability 11,052 9,797
Income taxes payable 398 365
142,290 149,315
Reforestation liability 25,074 23,099
Long term debt 468,759 220,419
Employee future benefits 8,391 7,361
Provisions and other liabilities 20,028 25,190
Deferred income taxes - 6,659
Equity:
Share capital 553,559 490,363
Contributed surplus 7,665 7,476
Translation reserve 77,425 20,950
Hedge reserve 62 133
Retained earnings 86,543 117,558
725,254 636,480
$ 1,389,796 $ 1,068,523
Approved on behalf of the Board:
"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 "will", "should", "expected", "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 others: 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 2015 audited consolidated financial statements and Management's Discussion & Analysis are available at www.sedar.com and www.interfor.com.

There will be a conference call on Friday, February 12, 2016 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 2015 financial results.

The dial-in number is 1-866-233-4795. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until February 26, 2016. The number to call is 1-866-245-6755, Passcode 434627.

Contact Information

  • Interfor Corporation
    John A. Horning
    Executive Vice President and Chief Financial Officer
    (604) 689-6829