Interfor Corporation
TSX : IFP

Interfor Corporation

November 02, 2017 17:22 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 2, 2017) - 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 earnings1 (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 EBITDA1 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 2016 2015
Unit Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
Financial Performance (Unaudited)
Total sales $MM 489.2 511.4 456.8 442.3 457.6 458.8 433.9 411.4
Lumber $MM 410.2 433.7 389.6 363.5 374.8 371.1 348.9 325.0
Logs, residual products and other $MM 79.0 77.7 67.2 78.8 82.8 87.7 85.0 86.4
Operating earnings (loss) $MM 28.3 42.7 30.4 22.3 20.1 30.0 3.5 (6.3 )
Net earnings (loss) $MM 16.8 24.5 19.7 26.6 15.1 23.2 0.8 (3.5 )
Net earnings (loss) per share, basic $/share 0.24 0.35 0.28 0.38 0.22 0.33 0.01 (0.05 )
Adjusted net earnings (2) $MM 20.0 28.7 22.7 17.7 20.7 17.5 2.7 4.5
Adjusted net earnings per share, basic(2) $/share 0.29 0.41 0.32 0.25 0.30 0.25 0.04 0.06
Adjusted EBITDA(2) $MM 60.5 77.4 60.3 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 70.0 70.0 70.0
Shares outstanding - weighted average million 70.0 70.0 70.0 70.0 70.0 70.0 70.0 70.0
Operating Performance
Lumber production million fbm 645 655 640 607 628 637 618 568
Total lumber sales million fbm 671 675 645 619 647 658 637 615
Lumber sales - Interfor produced million fbm 650 654 624 598 627 634 609 586
Lumber sales - wholesale and commission million fbm 21 21 21 21 20 24 28 29
Lumber - average selling price (3) $/thousand fbm 611 642 604 588 580 564 548 529
Average USD/CAD exchange rate (4) 1 USD in CAD 1.2528 1.3449 1.3238 1.3341 1.3050 1.2886 1.3732 1.3354
Closing USD/CAD exchange rate (4) 1 USD in CAD 1.2480 1.2977 1.3322 1.3427 1.3117 1.3009 1.2971 1.3840
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 3 months ended For the 9 months ended
Sept. 30, Sept. 30, Jun. 30, Sept. 30, Sept. 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

Capital Resources

The following table summarizes Interfor's credit facilities and availability as of September 30, 2017:



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 $ 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
Unused portion of facility $ 53,754 $ 200,000 $ - $ 58,531 $ 312,285
Add: Cash and cash equivalents 71,813
Available liquidity at September 30, 2017 $ 384,098

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
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 )
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
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 )
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
Adjusted EBITDA(2) $ 60,546 $ 58,096 $ 77,428 $ 198,239 $ 148,319
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
Pre-tax return on total assets(4) 8.7 % 6.5 % 13.4 % 10.6 % 5.7 %
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 )
Total net debt $ 177,787 $ 346,929 $ 218,252 $ 177,787 $ 346,929
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
Total invested capital $ 995,463 $ 1,092,262 $ 1,034,388 $ 995,463 $ 1,092,262
Net debt to invested capital(5) 17.9 % 31.8 % 21.1 % 17.9 % 31.8 %
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 )
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
Operating cash flow per share (before working capital changes) $ 0.82 $ 0.78 $ 1.05 $ 2.72 $ 2.03
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, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 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
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
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 )
(4,994 ) (3,580 ) (14,330 ) (14,490 )
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 )
6,559 1,445 26,168 (29 )
Net earnings $ 16,778 $ 15,093 $ 60,957 $ 39,093
Net earnings per share, basic and diluted $ 0.24 $ 0.22 $ 0.87 $ 0.56
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, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 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 )
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 )
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 )
Comprehensive income $ 1,381 $ 17,766 $ 30,589 $ 19,849
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, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 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
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 )
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 )
(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
Repayments of long term debt - (47,074 ) (116,260 ) (96,908 )
(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
Cash and cash equivalents, end of period $ 71,813 $ 18,392 $ 71,813 $ 18,392
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
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
$ 1,296,280 $ 1,301,648
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
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
817,676 786,667
$ 1,296,280 $ 1,301,648
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.

Contact Information

  • 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