INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded net earnings in Q1’18 of $33.0 million, or $0.47 per share, compared to $36.2 million, or $0.52 per share in Q4’17 and $19.7 million, or $0.28 per share in Q1’17. Adjusted net earnings in Q1’18 were $36.8 million or $0.52 per share, compared to $45.1 million, or $0.64 per share in Q4’17 and $22.7 million, or $0.32 per share in Q1’17.
Adjusted EBITDA was $81.1 million on sales of $527.6 million in Q1’18 versus $89.5 million on sales of $532.8 million in Q4’17.
Notable items in the quarter included:
Higher Lumber Prices – The key benchmark prices improved quarter-over-quarter with the SYP Composite, Western SPF Composite and KD H-F Stud 2×4 9’ increasing by US$37, US$33 and US$63 per mfbm, respectively. Interfor’s average lumber selling price increased $38 from Q4’17 to a record $688 per mfbm.
Increased Production/Reduced Shipments
* Total lumber production was 666 million board feet or 11 million board feet more than the prior quarter. Production in the U.S. South region increased to 302 million board feet from 296 million board feet in the preceding quarter. The B.C. and U.S. Northwest regions accounted for 218 million board feet and 146 million board feet, respectively, compared to 219 million board feet and 140 million board feet in Q4’17, respectively.
* Total lumber shipments were 648 million board feet, including agency and wholesale volumes, or 38 million board feet lower than Q4’17. This reduction was the result of industry-wide logistics issues, particularly due to weather-impacted rail constraints in B.C.
Continued Financial Flexibility
* Net debt ended the quarter at $127.1 million, or 12.4% of invested capital, resulting in available liquidity of $444.6 million.
* Interfor generated $75.5 million of cash from operations before changes in working capital, or $1.08 per share. Total cash generated from operations was $18.5 million after considering an increase in working capital, including a $34.0 million increase in inventories, a $10.9 million increase in accounts receivable due primarily to higher lumber prices, and the payment of annual employee incentive compensation.
* Capital spending was $18.1 million on a mix of high-return discretionary, maintenance and woodlands projects.
Softwood Lumber Duties – Interfor expensed $12.9 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 mandated final rate of 20.23%.
more detail at: http://www.interfor.com/sites/default/files/docs/reports/Press%20Release%20Q1%2718%20SEDAR%20%2800000002%29.pdf