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

Mactac Expands Involvement as Leading Members of CELAB Global Consortium

Mactac® is expanding its role as a leading member of the CELAB (Circular Economy for Labels) global consortium, announcing the naming of company leaders to the consortium’s executive boards. Ed LaForge, President and Chief Executive Officer for Mactac, will serve as vice president of CELAB’s global executive board, and Kevin Clunie, Vice President of Sales and Marketing for Mactac Performance Adhesives Group, will serve as vice president of CELAB’s North America branch executive board. Additionally, Brittany Eppley, Mactac’s Marketing and Communications Manager will play a leading role on the CELAB North America branch communications team. Mactac’s parent company, LINTEC, is also a member of the organization within the CELAB Europe regional branch.

Ahlstrom completes its investment in Brazil for a new lamination line supporting the global filtration industry

Ahlstrom, in its ongoing dedication to addressing the global need for clean air and water, has successfully completed a EUR 2 million investment for a new laminator at its Louveira plant in Brazil. This investment not only reinforces Ahlstrom's 50-year commitment to the global filtration industry but also marks a significant expansion of its product offerings in the South American market for industrial air, industrial liquid, and fuel filtration, including products currently produced in European and North American markets. “The new laminator increases our manufacturing capabilities and brings needed flexibility to supply our local customers with the best-in-class filtration solutions,” says Andre Pereira, Head of Sales, Filtration, Latin America. “Efficient supply chain management prevents interruptions to the supply stream, and shorter transport distances reduce carbon emissions and lower environmental impact,” he continues.

Mondi Group: Trading update 11 October 2017

Underlying operating profit for the third quarter of 2017 of €245 million was 8% above the comparable prior year period (€227 million). The Group benefited from higher average selling prices partly offset by higher costs and negative currency effects. Underlying operating profit was in line with the second quarter of 2017, with the positive pricing momentum seen across most product segments offset by rising costs, negative currency effects and the usual seasonal downturn in Uncoated Fine Paper. Like-for-like sales volumes were above the comparable prior year period, driven by good growth in containerboard and Fibre Packaging. Selling prices for the Group’s key paper grades were above those of both the comparable prior year period and the previous quarter as the upward momentum in pricing witnessed over the first half continued. Costs were generally higher than the comparable prior year period and the previous quarter. Wood, energy and chemical costs were higher than the comparable prior year period while benchmark paper for recycling prices were up 15% compared to the third quarter of 2016, and 6% higher sequentially. Click Read More below for additional detail.
Back To Top
×Close search
Search