EBITDA(1) of $280 million and Net Earnings of $112 million in 2018
NCIB Purchases of 2.3 million Shares for $37 million in 2018
Net Debt to Invested Capital(1) of 6%

VANCOUVER, British Columbia, Feb. 07, 2019 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded net earnings of $111.7 million, or $1.60 per share, in 2018, compared to $97.2 million, or $1.39 per share in 2017.  Adjusted EBITDA was $280.4 million on record annual sales of $2.2 billion.

Interfor recorded a net loss in Q4’18 of $13.2 million, or $0.19 per share, compared to net earnings of $28.1 million, or $0.40 per share in Q3’18 and $36.2 million, or $0.52 per share in Q4’17.  Adjusted net loss in Q4’18 was $19.8 million compared to Adjusted net earnings of $28.2 million in Q3’18 and $45.1 million in Q4’17.

Adjusted EBITDA was $6.2 million on sales of $468.5 million in Q4’18 versus $69.4 million on sales of $570.5 million in Q3’18.

Notable items in the quarter included:

  • Lumber Price Volatility

    • Key benchmark prices decreased in Q4’18 versus Q3’18.  The Western SPF Composite and KD H-F Stud 2x4 9’ benchmarks fell US$117 and US$132 per mfbm, respectively.   The SYP Composite decreased US$77 to US$386 per mfbm.

    • Interfor’s average lumber selling price fell $102 to $599 per mfbm, on 647 million board feet of lumber sales.

  • Lumber Production Decline Due to Temporary Factors

    • Total lumber production was 607 million board feet, down 67 million board feet quarter-over-quarter.  This decline reflects Interfor’s previously announced plan to temporarily reduce production across its B.C. Interior operating platform.  In addition, project related down-time in the U.S. South and normal holiday-related operating schedules further contributed to the lower lumber production. 

    • Production in the B.C. region declined to 174 million board feet from 224 million board feet in the preceding quarter.  The U.S. South and U.S. Northwest regions accounted for 303 million board feet and 130 million board feet, respectively, compared to 313 million board feet and 137 million board feet in Q3’18, respectively.

    • Lumber inventory levels ended at 32 million board feet lower than Q3’18.   
       
  • Log Cost Inflation in B.C.

    • Operating cost increases were driven by B.C. log cost inflation, which was impacted by higher stumpage rates and open market log costs.

    • Interfor’s operating costs were also impacted by an increase in its net realizable value provision for log and lumber inventories by $8.2 million in Q4’18.

  • Financial Flexibility

    • Net debt ended the quarter at $63.8 million, or 6.1% of invested capital, resulting in available liquidity of $506.9 million.

    • Interfor generated $6.7 million of cash from operations before changes in working capital, or $0.10 per share, and total cash from operations of $18.0 million.  The $11.3 million net cash inflow from working capital was driven by reduced accounts receivable and lumber inventory volumes, partially offset by a seasonal increase in B.C. Interior log volumes.

    • Capital investments of $59.4 million in Q4’18 included $38.1 million on U.S. South focused high-return discretionary projects, with the remainder related to maintenance capital and woodlands projects. 

    • Interfor purchased and cancelled 1,680,295 of its Common Shares (“Shares”) at a cost of $25.0 million in Q4’18, for a total of 2,277,540 Shares purchased at a cost of $36.9 million in 2018.  The Company’s normal course issuer bid (“NCIB”) was amended in December 2018 and permits the purchase of up to 6,934,456 Shares until its expiry on March 6, 2019.

  • Softwood Lumber Duties

    • Interfor expensed $9.7 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$60.4 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S.  With the exception of US$3.3 million recorded as a long-term receivable in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense.

(1) Refer to Adjusted EBITDA and Net debt to invested capital in the Non-GAAP Measures section

Strategic Capital Plan Update

  • Interfor continues to make progress on previously announced Phase 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, with completion scheduled for Q2’19.  The related capital expenditures through Q4’18 total US$34.6 million and expected total costs through completion remain in-line with initial guidance.

  • 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.  The related capital expenditures through Q4’18 total US$15.3 million and the projects remain on budget.

Financial and Operating Highlights (1) 

  For the three months ended
     
  Dec. 31, Dec. 31,
 Sep. 30,
 For the year ended Dec. 31
  
 Unit2018 2017 2018 2018 2017 2016  
         
Financial Highlights(2)        
Total sales$MM468.5 532.8 570.5 2,186.6 1,990.1 1,792.7  
Lumber$MM387.7 446.0 480.3 1,841.1 1,679.4 1,458.3  
Logs, residual products and other$MM80.8 86.8 90.2 345.5 310.7 334.4  
Operating earnings (loss)$MM(17.0) 47.9 41.3 156.6 149.3 75.9  
Net earnings (loss)$MM(13.2) 36.2 28.1 111.7 97.2 65.6  
Net earnings (loss) per share, basic$/share(0.19) 0.52 0.40 1.60 1.39 0.94  
Adjusted net earnings (loss)(3)$MM(19.8) 45.1 28.2 114.1 116.5 58.7  
Adjusted net earnings (loss) per share, basic(3)$/share(0.29) 0.64 0.40 1.64 1.66 0.84  
Operating cash flow per share (before working  capital changes)(3)$/share0.10 1.19 1.00 3.95 3.91 2.75  
Adjusted EBITDA(3)$MM6.2 89.5 69.4 280.4 287.8 199.6  
Adjusted EBITDA margin(3)%1.3% 16.8% 12.2% 12.8% 14.5% 11.1%  
         
Total assets$MM1,529.5  1,353.0 1,539.5 1,529.5  1,353.0  1,301.6  
Total debt$MM 272.8  250.9 258.9  272.8  250.9  308.8  
Net debt(3)$MM63.8 119.3 3.8 63.8 119.3 289.6  
Net debt to invested capital(3)%6.1% 12.3% 0.4% 6.1% 12.3% 26.9%  
Annualized return on invested capital(3)%2.4% 36.4% 27.7% 27.9% 28.1% 17.7%  
         
Operating Highlights        
Lumber productionmillion fbm 607  655  674  2,635  2,595  2,490  
Total lumber salesmillion fbm 647  686  685  2,680  2,677 2,561  
  Lumber sales - Interfor producedmillion fbm 639  666  675  2,638  2,594  2,469  
  Lumber sales - wholesale and commissionmillion fbm 8  20  10  42  83 92  
Lumber - average selling price(4)$/thousand fbm 599  650  701  687  627 570  
         
Average USD/CAD exchange rate(5)1 USD in CAD 1.3204  1.2713  1.3070  1.2957  1.2986  1.3248  
Closing USD/CAD exchange rate(5)1 USD in CAD 1.3642  1.2545  1.2945  1.3642  1.2545  1.3427  
 


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 strengthened its financial position throughout 2018, with strong cash flow generated from operations used to fund capital projects, invest in marketable securities and repurchase Shares.  Net debt at December 31, 2018 was $63.8 million, or 6.1% of invested capital, representing a decrease of $55.5 million from the level of net debt at December 31, 2017.  Net debt was negatively impacted by a weakened 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
 For the year ended
 
 Dec. 31,
 Dec. 31,
 Sep. 30,
 Dec. 31,
 Dec. 31,
 
Thousands of Dollars 2018  2017  2018  2018  2017 
      
Net debt     
Net debt, period opening$ 3,800 $ 176,866 $ 34,415 $ 119,300 $ 289,551 
Net drawing (repayment) on credit facilities (1)   (1)  112   110   (40,217) 
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD 13,941   1,301   (4,572)   21,830   (17,704) 
Decrease (increase) in cash and cash equivalents 7,286   (59,698)  61,248   (23,968)   (114,789) 
Decrease (increase) in marketable securities 49,871   921   (91,011)  (41,140)   - 
Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening (weakening) CAD (11,072)  (89)  3,608  (12,307)  2,459 
Net debt, period ending$ 63,825 $ 119,300 $ 3,800 $ 63,825 $ 119,300 
      

As at December 31, 2018, the Company had net working capital of $359.2 million and available liquidity of $506.9 million, including 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 rose to 4.47%.   

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, 2018:

  RevolvingSeniorU.S. 
 OperatingTermSecuredOperating 
Thousands of Canadian DollarsLineLineNotesLineTotal
Available line of credit$ 65,000$ 200,000$ 272,840$ 68,210$ 606,050 
Maximum borrowing available$ 65,000$ 200,000$ 272,840$ 50,590$ 588,430 
Less:      
Drawings -  - 272,840 - 272,840 
Outstanding letters of credit included in line utilization 14,858 -  -  2,810 17,668 
Unused portion of facility$ 50,142$ 200,000$  - $ 47,780297,922 
      
Add:     
Cash and cash equivalents    166,152
Marketable securities    42,863
Available liquidity at December 31, 2018    $ 506,937

As of December 31, 2018, the Company had commitments for capital expenditures totaling $161.4 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, 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 audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

 For the 3 months ended   
Thousands of Canadian Dollars except number of sharesDec. 31,
 Dec. 31,
 Sep. 30,
 For the year ended Dec. 31,
 
and per share amounts 2018  2017  2018  2018  2017  2016 
       
Adjusted Net Earnings (Loss)      
Net earnings (loss)$ (13,165) $ 36,196 $  28,092 $ 111,678 $ 97,153 $ 65,643 
Add:      
  Capital asset write-downs and restructuring costs 4,551  7,422  5,848  15,304  9,203  7,280 
  Other foreign exchange loss (gain) (3,330)  (412)  1,847  (3,474)  2,035  (1,468) 
  Long term incentive compensation expense (recovery) (9,180)  3,110  (7,503)  (7,829)  12,977  4,551 
  Other expense (income) (1,254)  995  (192)  (1,188)  1,987  (14,094) 
  Post closure wind-down costs and losses (recoveries) -  5  -  4  (21)  909 
  Income tax effect of above adjustments 2,530  (2,260)  149  (396)  (6,848)  2,008 
  Recognition of previously unrecognized deferred tax assets -  -  -  -  -  (6,171) 
Adjusted net earnings (loss)$ (19,848) $ 45,056 $ 28,241 $ 114,099 $ 116,486 $ 58,658 
Weighted average number of shares - basic ('000) 68,884  70,030  69,908   69,713  70,030  70,030 
Adjusted net earnings (loss) per share$ (0.29) $ 0.64 $ 0.40 $ 1.64 $ 1.66 $ 0.84 
       
Adjusted EBITDA      
Net earnings (loss)$ (13,165) $ 36,196 $ 28,092 $ 111,678 $ 97,153 $ 65,643 
Add:      
  Depreciation of plant and equipment 19,283  19,217  20,071  80,273  77,623  76,092 
  Depletion and amortization of timber, roads and other 8,566  11,879  9,715  36,048  38,635  34,895 
  Capital asset write-downs and restructuring costs 4,551  7,422  5,848  15,304  9,203  7,280 
  Finance costs 2,254  3,139  2,465  10,410  14,030  18,602 
  Other foreign exchange loss (gain) (3,330)  (412)  1,847  (3,474)  2,035  (1,468) 
  Income tax expense (recovery) (1,518)  7,968  9,044  39,191  34,136  7,207 
EBITDA 16,641  85,409  77,082  289,430  272,815  208,251 
Add:      
  Long term incentive compensation expense (recovery) (9,180)  3,110  (7,503)  (7,829)  12,977  4,551 
  Other (income) expense (1,254)  995  (192)  (1,188)  1,987  (14,094) 
  Post closure wind-down costs and losses (recoveries) -  5  -  4  (21)  909 
Adjusted EBITDA$ 6,207 $ 89,519 $ 69,387 $ 280,417 $ 287,758 $ 199,617 
Sales$468,544 $532,781 $570,486 $2,186,567 $1,990,106 $1,792,712 
Adjusted EBITDA margin 1.3%  16.8%  12.2%  12.8%  14.5%  11.1% 
       
Net debt to invested capital      
Net debt      
  Total debt$ 272,840 $ 250,900 $ 258,900 $ 272,840 $ 250,900 $ 308,821 
  Cash and cash equivalents (166,152)  (131,600)  (165,553)  (166,152)  (131,600)  (19,270) 
  Marketable securities (42,863)  -  (89,547)  (42,863)  -  - 
Total net debt$ 63,825 $ 119,300 $ 3,800 $ 63,825 $ 119,300 $ 289,551 
Invested capital      
  Net debt$ 63,825 $ 119,300 $ 3,800 $ 63,825 $ 119,300 $ 289,551 
  Shareholders' equity 974,065  854,188  985,316  974,065  854,188  786,667 
Total invested capital$ 1,037,890 $973,488 $ 989,116 $ 1,037,890 $ 973,488 $1,076,218 
Net debt to invested capital(1) 6.1%  12.3%  0.4%  6.1%  12.3%  26.9% 
       
Operating cash flow per share (before working capital changes)      
Cash provided by operating activities$ 18,037 $ 86,749 $ 84,956 $ 255,233 $ 258,224 $ 199,272 
Cash used in (generated from) operating working capital (11,303)  (3,332)  (15,223)  19,868  15,696  (6,695) 
Operating cash flow (before working capital changes)$ 6,734 $ 83,417 $ 69,733 $ 275,101 $ 273,920 $ 192,577 
Weighted average number of shares - basic ('000) 68,884  70,030  69,908  69,713  70,030  70,030 
Operating cash flow per share (before working capital changes)$ 0.10 $ 1.19 $ 1.00 $ 3.95 $ 3.91 $ 2.75 
       
Annualized return on invested capital      
Adjusted EBITDA$6,207 $89,519 $69,387 $280,417 $287,758 $199,617 
Invested capital, beginning of period$989,116 $994,542 $1,011,709 $973,488 $1,076,218 $1,177,557 
Invested capital, end of period 1,037,890  973,488  989,116  1,037,890  973,488  1,076,218 
Average invested capital$1,013,503 $984,015 $1,000,413 $1,005,689 $1,024,853  1,126,888 
Adjusted EBITDA divided by average invested capital 0.6%  9.1%  6.9%  27.9%  28.1%  17.7% 
Annualization factor 4.0  4.0  4.0  1.0  1.0  1.0 
Annualized return on invested capital 2.4%  36.4%  27.7%  27.9%  28.1%  17.7% 


Notes:
(1)Net debt to invested capital as of the period end.

 

   
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS  
For the three months and years ended December 31, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars except earnings per share)Three Months
Three Months
Year
Year
  Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
      
Sales
Costs and expenses:
$468,544$532,781$2,186,567$1,990,106
    
 Production440,534427,4181,799,8251,632,922
 Selling and administration12,14213,95852,99250,775
 Long term incentive compensation expense (recovery)(9,180)3,110(7,829)12,977
 U.S. countervailing and anti-dumping duty deposits9,6611,89153,33718,630
 Depreciation of plant and equipment19,28319,21780,27377,623
 Depletion and amortization of timber, roads and other8,56611,87936,04838,635
  481,006477,4732,014,6461,831,562
     
Operating earnings (loss) before write-downs and restructuring(12,462)55,308171,921158,544
     
Capital asset write-downs and restructuring costs4,5517,42215,3049,203
Operating earnings (loss)(17,013)47,886156,617149,341
     
Finance costs(2,254)(3,139) (10,410)(14,030)
Other foreign exchange gain (loss)3,3304123,474(2,035)
Other income (expense)1,254(995)1,188 (1,987)
 2,330(3,722)(5,748)(18,052)
      
Earnings (loss) before income taxes(14,683)44,164150,869131,289
      
Income tax expense (recovery):     
 Current(45)3562,9551,064
 Deferred(1,473)7,61236,23633,072
 (1,518)7,96839,19134,136
      
Net earnings (loss)$(13,165)$36,196$111,678$97,153
     
Net earnings (loss) per share, basic and diluted$(0.19)$0.52$1.60$1.39


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months and years ended December 31, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)Three Months
Three Months
Year
Year
  Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
     
Net earnings (loss)

 
$(13,165)$36,196 $111,678$97,153
    
Other comprehensive income (loss):    
Items that will not be recycled to Net earnings:    
 Defined benefit plan actuarial gain (loss), net of tax(2,338)(2,144)508(1,350)
      
Items that are or may be recycled to Net earnings:    
 Foreign currency translation differences for    
   foreign operations, net of tax29,0152,29743,703(28,854)
 Loss in fair value of interest rate swaps---(11)
 Total items that are or may be recycled to Net earnings29,0152,29743,703(28,865)
Total other comprehensive income (loss), net of tax26,67715344,211(30,215)
     
Comprehensive income$13,512$36,349$155,889$66,938
     


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months and years ended December 31, 2018 and 2017 (unaudited) 
(thousands of Canadian Dollars)Three Months
Three Months
Year
Year
  Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
      
Cash provided by (used in):
    
Operating activities:    
 Net earnings (loss)$(13,165)$36,196$111,678$97,153
 Items not involving cash:    
  Depreciation of plant and equipment19,28319,21780,27377,623
  Depletion and amortization of timber, roads and other8,56611,87936,04838,635
  Income tax expense (recovery)(1,518)7,96839,19134,136
  Finance costs2,2543,13910,41014,030
  Other assets(2,824)(4,133)(3,000)(4,203)
  Reforestation liability763(678)791,109
  Provisions and other liabilities(5,024)1,404(9,204)5,629
  Stock options216163774583
  Write-down of plant, equipment and intangibles3,2387,09113,9257,091
  Unrealized foreign exchange loss (gain)(3,801)158(3,885)147
  Other expense (income)(1,254)1,013(1,188)1,987
  6,73483,417275,101273,920
 Cash generated from (used in) operating working capital:    
  Trade accounts receivable and other30,6241,19627,392(19,845)
  Inventories(2,846)(8,988)(33,821)(14,243)
  Prepayments2162,349(3,128)919
  Trade accounts payable and provisions(15,575)9,847(5,919)19,688
  Income taxes paid(1,116)(1,072)(4,392)(2,215)
 18,03786,749255,233258,224
     
Investing activities:    
 Additions to property, plant and equipment(50,307)(17,413)
(106,440)
 (60,370) 
 Additions to roads and bridges(8,524)(7,072)
(32,165)
 (32,211) 
 Additions to timber licences and other intangible assets(68)(534)
(158)
 (2,360) 
 Proceeds on disposal of property, plant and equipment1,846 100
2,355
 561 
 Net proceeds from (additions to) investments and other assets58,555 626
(48,364)
 3,279 
 1,502(24,293)(184,772) (91,101)
      
Financing activities:    
 Share issuance, net of expenses --143-
 Share repurchase(24,979)-(36,929)-
 Interest payments(1,827)(2,655)(9,729)(12,240)
 Debt refinancing costs(18)(22)(88)(807)
 Change in operating line components of long term debt(1)(1)(2)(64)
 Additions to long term debt--155,90976,107
 Repayments of long term debt--(155,797)(116,260)
  (26,825)(2,678)(46,493)(53,264)
      
Foreign exchange gain (loss) on cash and    
 cash equivalents held in a foreign currency7,885910,584(1,529)
Increase in cash and cash equivalents 59959,78734,552112,330
     
Cash and cash equivalents, beginning of period165,55371,813131,60019,270
     
Cash and cash equivalents, end of period$166,152$131,600$166,152$131,600


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)  
  Dec. 31, 2018Dec. 31, 2017
    
Assets
Current assets: 
 Cash and cash equivalents$166,152$131,600
 Marketable securities42,863-
 Trade accounts receivable and other90,384112,470
 Income taxes receivable3,0081,289
 Inventories209,178165,156
 Prepayments17,30712,562
  528,892423,077
   
Employee future benefits303502
Deposits and other assets16,8426,404
Property, plant and equipment725,266670,830
Roads and bridges29,82924,092
Timber licences64,15366,589
Other intangible assets5,28814,170
Goodwill158,799147,081
Deferred income taxes132251
   
 $1,529,504$1,352,996
   
Liabilities and Shareholders’ Equity  
Current liabilities:  
 Trade accounts payable and provisions$155,434$152,854
 Reforestation liability13,94712,873
 Income taxes payable 356224
 169,737165,951
    
Reforestation liability
28,23527,535
Long term debt
272,840250,900
Employee future benefits
8,6878,249
Provisions and other liabilities
17,41326,976
Deferred income taxes
58,52719,197
 
 
  
Equity:
  
 Share capital537,534555,388
 Contributed surplus3,8518,582
 Translation reserve84,42340,720
 Retained earnings348,257249,498
   
  974,065854,188
    
 $1,529,504$1,352,996


Approved on behalf of the Board: 
  
 “L. SauderThomas V. Milroy
 DirectorDirector

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.  Generally, statements containing forward-looking information can be identified by the use of words such as: believe, expect, intend, forecast, plan, target, budget, outlook, opportunity, risk, strategy or variations or comparable language, or statements that certain actions, events or results may, could, would, should, might, or will occur or not occur.  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 release include assumptions regarding 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; the effects of 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 dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia; environmental impacts of the Company’s operations; labour disruptions; and the efficacy of information systems security.  Unless otherwise indicated, the forward-looking information in this release is based on the Company’s expectations at the date of this release.  Interfor undertakes no obligation to update such forward-looking information, except as 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 2018 audited consolidated financial statements and Management’s Discussion and Analysis are available at www.sedar.com and www.interfor.com

There will be an analyst conference call on Friday, February 8, 2019 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 2018 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 8, 2019.  The number to call is 1-855-859-2056, Passcode 9966426.

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