EBITDA1 of $17 million on Sales of $486 million
Net Debt to Invested Capital1 of 19%; Liquidity of $381 million
Reconfiguration of B.C. Coastal Business is Underway

VANCOUVER, British Columbia, Nov. 07, 2019 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a net loss in Q3’19 of $35.6 million, or $0.53 per share, compared to a net loss of $11.2 million, or $0.17 per share in Q2’19 and net earnings of $28.2 million, or $0.40 per share in Q3’18. 

Adjusted net loss in Q3’19 was $11.8 million compared to an Adjusted net loss of $16.2 million in Q2’19 and Adjusted net earnings of $28.3 million in Q3’18.

Adjusted EBITDA was $16.8 million on sales of $486.5 million in Q3’19 versus $12.6 million on sales of $481.3 million in Q2’19. 

Included in the Company’s results for Q3’19 are $23.2 million (after-tax) for capital asset write-downs and restructuring costs, or $31.8 million on a pre-tax basis.  This includes $14.0 million of non-cash impairments for capital asset write-downs on buildings, equipment and other assets related to the permanent closure of Interfor’s Hammond sawmill and $17.8 million of accruals for the settlement of various human resource matters related to the reconfiguration of the Company’s B.C. Coastal business and succession arrangements related to the announced retirement of Interfor’s CEO.

Other notable items in the quarter included:

•  Mixed Lumber Price Movements

  • Movements in key benchmark prices were mixed quarter-over-quarter with the SYP Composite dropping by US$18 to US$355 per mfbm while the Western SPF Composite benchmark rose by US$15 to US$338 per mfbm and the KD H-F Stud 2x4 9’ benchmark remained relatively flat at US$337 per mfbm.  Interfor’s average lumber selling price fell $20 from Q2’19 to $583 per mfbm.   

•  Production Increased; Balanced with Shipments

  • Total lumber production was 685 million board feet, up 38 million board feet from the prior quarter.  Production in the U.S. South region increased to 348 million board feet from 320 million board feet in the preceding quarter as the Monticello and Meldrim sawmills ramped up production after completion of the Phase I capital projects at these locations.  The B.C. and U.S. Northwest regions accounted for 205 million board feet and 131 million board feet, respectively, compared to 187 million board feet and 140 million board feet in Q2’19.  Production in Q2’19 was affected by the curtailments taken in the B.C. Interior in response to weak lumber prices and continuing high log costs.

  • Total lumber shipments were 692 million board feet, including agency and wholesale volumes, or 18 million board feet higher than Q2’19.

  • Lumber inventories at September 30, 2019 were 215 million board feet, up 4 million board feet quarter-over-quarter.

 •  Continued Strong Financial Position

  • Net debt ended the quarter at $212.7 million, or 19.4% of invested capital, resulting in available liquidity of $380.9 million. 
  • Interfor generated $2.3 million of cash flow from operations before changes in working capital, or $0.03 per share.  Total cash generated from operations was $29.7 million, primarily the result of reduced log inventories in B.C. 

  • Capital spending was $35.7 million in Q3’19, including $25.5 million on high-return discretionary projects, primarily in the U.S. South and the remainder related to maintenance capital and woodlands projects.

 •  Softwood Lumber Duties

  • Interfor expensed $12.1 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$85.8 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$3.3 million 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

Reconfiguration of B.C. Coastal Business

On September 3, 2019, Interfor announced a plan to reconfigure its B.C. Coastal business, including the permanent closure of its Hammond sawmill, located in Maple Ridge, B.C., and the reorganization of its forestry and woodlands operations. 

This plan is expected to result in the repatriation of working capital tied up at Hammond, the monetization of related real estate and improved results in the years ahead.  In addition, the Company’s B.C. Coastal forestry and woodlands operations will be reorganized to focus on value realization rather than operational integration with Hammond.

The closure is expected to be completed in the fourth quarter, after the mill’s remaining log and lumber inventories are processed and shipped.

Strategic Capital Plan Update

Interfor’s previously announced Phase I strategic capital projects at the Meldrim, Georgia and Monticello, Arkansas sawmills were substantially completed at the end of the prior quarter and are now in the ramp-up phase.  Total project costs are expected to be US$70.9 million.  As of September 30, 2019, US$69.9 million has been capitalized.

The Phase II projects at the Thomaston and Eatonton sawmills in Georgia and the Georgetown sawmill in South Carolina, with a budget of US$240 million, are on track for completion in various stages over the period of 2019 to 2022.  As of September 30, 2019, US$43.9 million has been capitalized and the projects remain on budget.

Acquisition of B.C. Interior Cutting Rights from Canfor

On June 3, 2019, Interfor entered into a purchase agreement with Canadian Forest Products Ltd. to acquire two replaceable timber licences with annual cutting rights of approximately 349,000 cubic metres, an interest in a non-replaceable forest licence and other related forestry assets in the Adams Lake area of the B.C. Interior and assume certain liabilities for total cash compensation of $60 million.

The transaction remains subject to various consents, including that by the Government of B.C. and is currently targeted to close in the fourth quarter, 2019 as consultation with stakeholders continues.     

Senior Leadership Transition

On August 26, 2019, Interfor announced that long-time President & CEO Duncan Davies will step down on December 31, 2019 and Ian Fillinger, currently the Company’s Senior Vice President & COO, has been appointed President & CEO effective January 1, 2020.  Mr. Fillinger will also serve on the Company's Board of Directors following this date. 

Mr. Davies will also step down from his role as a director of the Company and has agreed to remain with the Company in an advisory capacity through the end of 2020.


 
Financial and Operating Highlights1
 
  For the 3 months ended
  For the 9 months ended
 
  Sept. 30 Sept. 30 Jun. 30  Sept. 30 Sept. 30 
 Unit2019 2018 2019  2019 2018 
  (restated)2 (restated)2
Financial Highlights3       
Total sales$MM486.5 570.5 481.3  1,419.0 1,718.0 
Lumber$MM403.5 480.3 406.9  1,190.9 1,453.2 
Logs, residual products and other$MM83.0 90.2 74.4  228.1 264.8 
Operating earnings (loss)$MM(44.8) 41.8 (18.2)  (79.8) 174.8 
Net earnings (loss)$MM(35.6) 28.2 (11.2)  (62.1) 124.6 
Net earnings (loss) per share, basic$/share(0.53) 0.40 (0.17)  (0.92) 1.78 
Adjusted net earnings (loss)4$MM(11.8) 28.3 (16.2)  (40.7) 133.7 
Adjusted net earnings (loss) per share, basic4$/share(0.17) 0.40 (0.24)  (0.60) 1.91 
Operating cash flow per share (before working capital changes)4$/share0.03 1.04 0.15  0.43 3.96 
Adjusted EBITDA4$MM16.8 72.5 12.6  45.8 282.7 
Adjusted EBITDA margin4%3.5% 12.7% 2.6%  3.2% 16.5% 
        
Total assets$MM1,421.0 1,575.7 1,459.8  1,421.0 1,575.7 
Total debt$MM264.9 258.9 261.7  264.9 258.9 
Net debt$MM212.7 3.8 198.2  212.7 3.8 
Net debt to invested capital4%19.4% 0.4% 17.9%  19.4% 0.4% 
Annualized return on invested capital4%6.1% 29.1% 4.6%  5.7% 38.6% 
        
Operating Highlights       
Lumber productionmillion fbm685 674 647  1,978 2,029 
Total lumber salesmillion fbm692 685 674  1,987 2,033 
Lumber sales - Interfor producedmillion fbm681 675 664  1,955 1,999 
Lumber sales - wholesale and commissionmillion fbm11 10 10  32 34 
Lumber - average selling price5$/thousand fbm583 701 603  599 715 
        
Average USD/CAD exchange rate61 USD in CAD1.3204 1.3070 1.3377  1.3292 1.2876 
Closing USD/CAD exchange rate61 USD in CAD1.3243 1.2945 1.3087  1.3243 1.2945 
        

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 September 30, 2019 was $212.7 million, or 19.4% of invested capital, for an increase of $208.9 million from the level at September 30, 2018 and an increase of $148.8 million from December 31, 2018. 

YTD’19 net debt was positively impacted by a stronger Canadian Dollar against the U.S. Dollar as all debt held was denominated in U.S. Dollars; this was partially offset by the Company’s U.S. Dollar cash balances.

 For the 3 months ended
Sept. 30,

  For the 9 months ended
Sept. 30,

 
Thousands of Dollars2019 2018   2019  2018 
      
Net debt     
Net debt, period opening$198,209 $34,415  $63,825 $119,300 
Net drawing on credit facilities- 112   755  111 
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD3,120 (4,572)   (8,735)  7,889 
Decrease (increase) in cash and cash equivalents11,747 61,248   110,665  (31,254) 
Decrease (increase) in marketable securities- (91,011)   41,766  (91,011) 
Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening (weakening) CAD(402) 3,608   4,398  (1,235) 
Net debt, period ending, CAD$212,674 $3,800  $212,674 $3,800 

On March 28, 2019, the Company completed a modernization of its credit facilities.  The new facility replaced the U.S. Operating Line, Canadian Operating Line, and Revolving Term Line with one consolidated facility.  The new facility increased credit availability to $350 million and matures in March 2024.

As at September 30, 2019, the Company had net working capital of $216.2 million and available liquidity of $380.9 million, including cash and borrowing capacity on its term line facility.

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 enough liquidity to fund operating and capital requirements for the foreseeable future. 

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2019:

 RevolvingSenior 
 TermSecured 
Thousands of Canadian DollarsLineNotesTotal
 
Available line of credit$350,000$264,860$614,860 
Maximum borrowing available$350,000$264,860$614,860 
Less:     
Drawings - 264,860 264,860 
Outstanding letters of credit included in line utilization 21,246 - 21,246 
Unused portion of facility$328,754$            - 328,754 
      
Add:     
Cash and cash equivalents   52,186 
Available liquidity at September 30, 2019  $380,940 

As of September 30, 2019, the Company had commitments for capital expenditures totaling $104.9 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, 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
  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 2019  2018  2019   2019  2018 
 (restated)¹ (restated)¹
Adjusted Net Earnings (Loss)       
Net earnings (loss)$(35,648) $28,173 $(11,159)  $(62,109) $124,570 
Add:      
Capital asset write-downs and restructuring costs 31,814  5,848  87   33,566  10,753 
Other foreign exchange loss (gain) (216)  1,847  321   (235)  (144) 
Long term incentive compensation expense (recovery) 1,049  (7,503)  (851)   2,181  1,351 
Other (income) expense 100  (192)  (6,487)   (6,223)  66 
Post closure wind-down costs and losses -  -  -   -  4 
Income tax effect of above adjustments (8,867)  149  1,866   (7,876)  (2,926) 
Adjusted net earnings (loss)$(11,768) $28,322 $(16,223)  $(40,696) $133,674 
Weighted average number of shares - basic ('000) 67,253   69,908   67,252    67,284   69,993  
Adjusted net earnings (loss) per share$(0.17) $0.40 $(0.24)  $(0.60) $1.91 
       
Adjusted EBITDA      
Net earnings (loss)$(35,648) $28,173 $(11,159)  $(62,109) $124,570 
Add:      
Depreciation of plant and equipment 20,595  20,022  19,410   59,727  60,824 
Depletion and amortization of timber, roads and other 8,142  12,301  12,201   30,080  34,919 
Capital asset write-downs and restructuring costs 31,814  5,848  87   33,566  10,753 
Finance costs 3,784  2,980  3,324   11,284  9,694 
Other foreign exchange loss (gain) (216)  1,847  321   (235)  (144) 
Income tax expense (recovery) (12,804)  9,028  (4,196)   (22,508)  40,645 
EBITDA 15,667  80,199  19,988   49,805  281,261 
Add:      
Long term incentive compensation expense (recovery) 1,049  (7,503)  (851)   2,181  1,351 
Other (income) expense 100  (192)  (6,487)   (6,223)  66 
Post closure wind-down costs and losses -  -  -   -  4 
Adjusted EBITDA$16,816 $72,504 $12,650  $45,763 $282,682 
Sales$486,494 $570,486 $481,345  $1,419,002 $1,718,023 
Adjusted EBITDA margin 3.5%  12.7%  2.6%   3.2%  16.5% 
       
Net debt to invested capital      
Net debt      
Total debt$264,860 $258,900 $261,740  $264,860 $258,900 
Cash and cash equivalents (52,186)  (165,553)  (63,531)   (52,186)  (165,553) 
Marketable Securities -  (89,547)  -   -  (89,547) 
Total net debt$212,674 $3,800 $198,209  $212,674 $3,800 
Invested capital      
Net debt$212,674 $3,800 $198,209  $212,674 $3,800 
Shareholders' equity 880,854  980,389  911,409   880,854  980,389 
Total invested capital$1,093,528 $984,189 $1,109,618  $1,093,528 $984,189 
Net debt to invested capital2 19.4%  0.4%  17.9%   19.4%  0.4% 
       
Operating cash flow per share (before working capital changes)      
Cash provided by operating activities$29,658 $86,719 $32,302  $3,610 $244,516 
Cash used in (generated from) operating working capital (27,336)  (13,926)  (22,443)   25,656  32,710 
Operating cash flow (before working capital changes)$2,322 $72,793 $9,859  $29,266 $277,226 
Weighted average number of shares - basic ('000) 67,253   69,908  67,252    67,284   69,993  
Operating cash flow per share (before working capital changes)$0.03 $1.04 $0.15  $0.43 $3.96 
       
Annualized return on invested capital      
Adjusted EBITDA$16,816 $72,504 $12,650  $45,763 $282,682 
Invested capital, beginning of period$1,109,618 $1,006,696 $1,106,255  $1,032,591 $968,852 
Invested capital, end of period 1,093,528  984,189  1,109,618   1,093,528  984,189 
Average invested capital$1,101,573 $995,443 $1,107,937  $1,063,060 $976,521 
Adjusted EBITDA divided by average invested capital 1.5%  7.3%  1.1%   4.3%  28.9% 
Annualization factor 4.0  4.0  4.0   1.3  1.3 
Annualized return on invested capital 6.1%  29.1%  4.6%   5.7%  38.6% 

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 and nine months ended September 30, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars except earnings per share)Three Months
 Three Months
 Nine Months
 Nine Months
 
  Sept. 30, 2019
 Sept. 30, 2018
 Sept. 30, 2019
 Sept. 30, 2018
 
   (restated)¹  (restated)¹ 
      
Sales$486,494 $570,486 $1,419,002 $1,718,023 
Costs and expenses:    
 Production 448,214  469,482  1,309,440  1,351,554 
 Selling and administration 9,383  12,580  29,756  40,115 
 Long term incentive compensation expense (recovery) 1,049  (7,503)  2,181  1,351 
 U.S. countervailing and anti-dumping duty deposits 12,081  15,920  34,043  43,676 
 Depreciation of plant and equipment 20,595  20,022  59,727  60,824 
 Depletion and amortization of timber, roads and other 8,142  12,301  30,080  34,919 
   499,464  522,802  1,465,227  1,532,439 
     
Operating earnings (loss) before restructuring costs (12,970)  47,684  (46,225)  185,584 
     
Capital asset write-downs and restructuring costs 31,814  5,848  33,566  10,753 
Operating earnings (loss) (44,784)  41,836  (79,791)  174,831 
     
Finance costs (3,784)  (2,980)   (11,284)  (9,694) 
Other foreign exchange gain (loss) 216  (1,847)  235  144 
Other income (expense) (100)  192  6,223   (66) 
  (3,668)  (4,635)  (4,826)  (9,616) 
      
Earnings (loss) before income taxes (48,452)  37,201  (84,617)  165,215 
      
Income tax expense (recovery):     
 Current 416  663  809  3,000 
 Deferred (13,220)  8,365  (23,317)  37,645 
  (12,804)  9,028  (22,508)  40,645 
      
Net earnings (loss)$(35,648) $28,173 $(62,109) $124,570 
     
Net earnings (loss) per share, basic and diluted$(0.53) $0.40 $(0.92) $1.78 


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three and nine months ended September 30, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars)Three Months
 Three Months
 Nine Months
 Nine Months
 
  Sept. 30, 2019
 Sept. 30, 2018
 Sept. 30, 2019
 Sept. 30, 2018
 
    (restated)¹    (restated)¹ 
      
Net earnings (loss)
$(35,648) $28,173 $(62,109) $124,570 
      
Other comprehensive income (loss):     
Items that will not be recycled to Net earnings (loss):     
 Defined benefit plan actuarial gain (loss), net of tax (1,151)  957  (1,018) 2,846 
       
Items that are or may be recycled to Net earnings (loss):     
 Foreign currency translation differences for     
  foreign operations, net of tax 6,020  (9,284)  (17,581) 14,670 
Total other comprehensive income (loss), net of tax 4,869  (8,327)  (18,599) 17,516 
      
Comprehensive income (loss)$(30,779) $19,846 $(80,708) $142,086 

Notes:

  1. Financial information has been restated for implementation of IFRS 16, Leases.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars)Three Months Three Months
 Nine Months
 Nine Months
 
  Sept. 30, 2019 Sept. 30, 2018
 Sept. 30, 2019
 Sept. 30, 2018
 
  (restated)¹  (restated)¹ 
     
Cash provided by (used in):    
Operating activities:    
 Net earnings (loss)$(35,648) $28,173 $(62,109) $124,570 
 Items not involving cash:    
  Depreciation of plant and equipment20,595  20,022  59,727  60,824 
  Depletion and amortization of timber, roads and other8,142  12,301  30,080  34,919 
  Income tax expense (recovery)(12,804)  9,028  (22,508)  40,645 
  Finance costs3,784  2,980  11,284  9,694 
  Other assets202  241  523  (176) 
  Reforestation liability(1,834)  (2,111)  (2,577)  (684) 
  Provisions and other liabilities6,210  (3,672)  5,206  (3,992) 
  Stock options224  212  541  558 
  Write-down of plant, equipment and intangibles14,583  5,823  16,394  10,687 
  Unrealized foreign exchange loss (gain)(150)  (12)  10  115 
  Other expense (income)(982)  (192)  (7,305)  66 
  2,322  72,793  29,266  277,226 
 Cash generated from (used in) operating working capital:    
  Trade accounts receivable and other(4,741)  20,766  (25,189)  (3,204) 
  Inventories37,647  951  28,082  (30,975) 
  Prepayments(1,340)  (602)  (7,082)  (3,260) 
  Trade accounts payable and provisions(3,933)  (5,235)  (20,595)  8,005 
  Income taxes paid(297)  (1,954)  (872)  (3,276) 
 29,658  86,719  3,610  244,516 
     
Investing activities:    
 Additions to property, plant and equipment(31,951)  (28,968)  (126,781)  (56,133) 
 Additions to roads and bridges(3,767)  (9,473)  (17,272)  (23,641) 
 Additions to timber licences and other intangible assets(5)  (40)  (77)  (90) 
 Proceeds on disposal of property, plant and equipment and other309  324  8,449  509 
 Net proceeds from (additions to) marketable securities,    
   deposits and other assets370  (93,354)  47,130  (106,933) 
 (35,044)  (131,511)  (88,551)  (186,288) 
      
Financing activities:    
 Issuance of share capital, net of expenses -  -  80  143 
 Share repurchases-  (11,950)  (7,825)  (11,950) 
 Interest payments(3,431)  (2,048)  (8,848)  (7,880) 
 Lease liability payments(2,927)  (2,503)  (8,692)  (7,328) 
 Debt refinancing costs(3)  (67)  (1,194)  (70) 
 Change in operating line components of long term debt-  -  5  (1) 
 Additions to long term debt-  155,909  197,925  155,909 
 Repayments of long term debt-  (155,797)  (197,175)  (155,797) 
 (6,361)  (16,456)  (25,724)  (26,974) 
      
Foreign exchange gain (loss) on cash and    
 cash equivalents held in a foreign currency402  (2,144)  (3,301)  2,699 
Increase (decrease) in cash (11,345)  (63,392)  (113,966)  33,953 
     
Cash and cash equivalents, beginning of period63,531  228,945  166,152  131,600 
     
Cash and cash equivalents, end of period$52,186 $165,553 $52,186 $165,553 

Notes:

  1. Financial information has been restated for implementation of IFRS 16, Leases.


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
September 30, 2019, December 31, 2018 and January 1, 2018 (unaudited) 
(thousands of Canadian Dollars)    
 Sept. 30, 2019Dec. 31, 2018Jan. 1, 2018 
   (restated)¹

 
(restated)¹ 
Assets    
Current assets:    
 Cash and cash equivalents$52,186$166,152$131,600 
 Marketable securities - 42,863 - 
 Trade accounts receivable and other 113,685 90,384 112,470 
 Income taxes receivable 2,869 3,008 1,289 
 Inventories 177,216 209,178 165,156 
 Prepayments 23,349 16,833 12,186 
   369,305 528,418 422,701 
     
Employee future benefits 110 303 502 
Deposits and other assets 10,617 16,842 6,404 
Right of use assets 31,996 37,778 38,600 
Property, plant and equipment 755,130 723,773 669,165 
Roads and bridges 29,629 29,829 24,092 
Timber licences 61,234 64,153 66,589 
Other intangible assets 3,803 5,288 14,170 
Goodwill 154,537 158,799 147,081 
Deferred income taxes 4,635 133 253 
     
 $1,420,996$1,565,316$1,389,557 
     
Liabilities and Shareholders’ Equity    
Current liabilities:    
 Trade accounts payable and provisions$128,400$154,869$152,355 
 Reforestation liability 14,430 13,947 12,873 
 Lease liabilities 10,026 10,158 8,019 
 Income taxes payable  238 356 224 
  153,094 179,330 173,471 
      
Reforestation liability 26,021 28,235 27,535 
Lease liabilities 27,063 33,954 36,165 
Long term debt 264,860 272,840 250,900 
Employee future benefits 13,133 8,687 8,249 
Provisions and other liabilities 19,644 16,421 25,808 
Deferred income taxes 36,327 57,083 17,877 
     
Equity:    
 Share capital 533,563 537,534 555,388 
 Contributed surplus 4,357 3,851 8,582 
 Translation reserve 66,812 84,393 40,733 
 Retained earnings 276,122 342,988 244,849 
     
   880,854 968,766 849,552 
      
 $1,420,996$1,565,316$1,389,557 
Notes:
  1. Financial information has been restated for implementation of IFRS 16, Leases.
 

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 unaudited consolidated financial statements and Management’s Discussion and Analysis for Q3’19 are available at www.sedar.com and www.interfor.com

There will be a conference call on Friday, November 8, 2019 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2019 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 9, 2019.  The number to call is 1-855-859-2056, Passcode 3995419.

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