Interfor Reports Q3’21 Results

INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded Net earnings in Q3’21 of $65.6 million, or $1.05 per share, compared to $419.2 million, or $6.45 per share in Q2’21 and $121.6 million, or $1.81 per share in Q3’20. Adjusted net earnings in Q3’21 were $46.7 million compared to $433.5 million in Q2’21 and $140.0 million in Q3’20.

Adjusted EBITDA was $93.9 million on sales of $664.3 million in Q3’21 versus $611.3 million on sales of $1.1 billion in Q2’21.

Notable items in the quarter:
• Record Production and Shipments
o Total lumber production in Q3’21 was 731 million board feet, representing an increase of 15 million board feet quarter-over-quarter and setting an Interfor production record. The U.S. South and U.S. Northwest regions accounted for 411 million board feet and 156 million board feet, respectively, compared to 387 million board feet and 137 million board feet in Q2’21. Sawmills acquired on July 9, 2021 contributed to the increased output in both regions. Production in the B.C. region decreased to 164 million board feet from 192 million board feet in Q2’21 due to log supply related downtime at the B.C. Interior sawmills as a result of wildfires.
o Total lumber shipments were 753 million board feet, or 39 million board feet higher than Q2’21 and 135 million board feet higher than Q3’20.
o Interfor’s average selling price was $744 per mfbm, down $675 per mfbm versus Q2’21. The SYP Composite, Western SPF Composite and KD H-F Stud 2×4 9’ lumber price benchmarks decreased quarter-over-quarter by US$560, US$840 and US$1,051 per mfbm to US$468, US$479 and US$558 per mfbm, respectively.

• Strong Free Cash Flow Generation
o Interfor generated $72.3 million of cash flow from operations before changes in working capital, or $1.15 per share. A decrease in working capital investment added $123.9 million of cash flow, primarily related to the collection of trade receivables recorded at higher lumber prices and lower log inventories in B.C. driven by wildfire impacts.
o Net debt ended the quarter at $(133.8) million, or (9.3)% of invested capital, resulting in available liquidity of $836.3 million.

• Strategic Capital Investments
o Capital spending was $44.0 million, including $26.6 million on high-return discretionary projects. The majority of this discretionary spending was focused on the ongoing multi-year rebuild of the Eatonton, GA sawmill, which will begin ramp-up in Q1’22.

• Acquisition of Four US Sawmills and Restart of the DeQuincy, LA Operation
o On July 9, 2021, Interfor concluded the acquisition of four sawmill operations located in Bay Springs, MS, Fayette, AL, DeQuincy, LA and Philomath, OR (the “Acquired US Sawmills”) from Georgia-Pacific Wood Products LLC and GP Wood Products LLC. The Company paid total consideration of US$372.0 million.
o Inventory purchase accounting adjustments of $14.0 million related to the Acquired US Sawmills are included in production costs for Q3’21.
o Significant progress has been made on restarting operations at the sawmill in DeQuincy, LA, which has annual lumber production capacity of 200 million board feet. Lumber production is expected to begin in Q1’22 and ramp-up over the course of 2022.

• Sale of Former Sawmill Property
o On July 21, 2021, the Company completed the sale of property, plant and equipment at its former Hammond sawmill located in Maple Ridge, B.C. for net cash proceeds of $39.7 million and recorded a gain of $22.8 million.

• Softwood Lumber Duties
o Interfor expensed $6.1 million of duties in the quarter, representing the full amount of CV and AD duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 8.99%.
o Cumulative duties of US$163.0 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S. Except for US$32.9 million in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense.
details at: https://interfor.com/wp-content/uploads/2021/11/Interfor-Reports-Q321-Results-and-Announces-Renewal-of-Share-Buyback-Program.pdf

Related Posts

Neenah Introduces conVerd Board® Wipe Clean™ and DigiScape® FootPrint™ Safe and Sustainable Wide Format Solutions for Conducting Business During COVID-19

Neenah expands its wide format portfolio to address significant market demand for safe signage solutions by offering new, innovative solutions with conVerd Board® Wipe Clean™ and DigiScape® FootPrint™. “As the CDC continues to update safety guidelines for businesses, our customers need the flexibility to update their signage with cleaner and environmentally smarter products. With these new options, we meet the need for PVC-free products that print and perform better than plastic with similar properties. With conVerd Board Wipe Clean and DigiScape FootPrint, companies can effortlessly do the right thing for their customers, their brand, and the planet,” says Milene Ribas, Global Business Development Manager for Neenah. conVerd Board has long been the choice of brands searching for a recyclable alternative for structural signage. Now, Neenah introduces state-of-the-art conVerd Board Wipe Clean, the only 100% paper-based, fully recyclable product on the market with a wipeable, printable surface.

Kotkamills Group Oyj to conduct pre-feasibility study for paper machine investment

In order to prepare Kotkamills Absorbex Oy, a subsidiary of Kotkamills Oy and the leading global supplier of Laminating Papers, to meet the increasing demand, as well as to replace the discontinuing production volume of Paper Machine 7 in Tainionkoski, Imatra (Stock Exchange release on the 3rd of July 2017), Kotkamills Oy has started the pre-feasibility study of a new Paper Machine 3 (PM 3) in Kotka. The final decision of this possible investment will be done by the end of year 2018. The capacity, cost estimation and start-up timing of the the PM 3 will be published later on subject to the positive investment decision. After the possible start-up of the PM 3, Kotkamills Oy is maximizing the integration advantages of the Kotka site. In addition to the efficient investment cost of PM 3 to the already available infrastructure, the energy and fixed costs per produced volumes of the whole integrated site would be lower than today. The possible investment would have a positive impact on the profitability of Kotkamills Group. Click Read More below for additional information.

UPM Raflatac partners with Soprema to promote label waste recycling with the RafCycle™ service

UPM Raflatac announces Soprema as its main partner in label waste recycling in the EMEIA region. Soprema, one of the world's leading companies in waterproofing and a specialist in roofing and insulation, will transform the label waste collected through RafCycle™ by UPM Raflatac recycling service into new construction and insulation materials. Soprema is a key player in the construction sector. With a presence of 123 manufacturing sites and over 120 subsidiaries worldwide, Soprema is known for its commitment to sustainable construction solutions and investment in innovation. The collaboration with UPM Raflatac further underlines Soprema's dedication to sustainability. UPM Raflatac’s RafCycle service is committed to liner waste recycling. With this innovative partnership, label waste is converted into insulation solutions, supporting the use of renewable sources in the construction industry at Soprema’s site in France.
Back To Top
×Close search
Search