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    
  Unit 2018   2017   2018   2018   2017   2016    
                 
Financial Highlights (2)                
Total sales $MM 468.5   532.8   570.5   2,186.6   1,990.1   1,792.7    
Lumber $MM 387.7   446.0   480.3   1,841.1   1,679.4   1,458.3    
Logs, residual products and other $MM 80.8   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) $/share 0.10   1.19   1.00   3.95   3.91   2.75    
Adjusted EBITDA (3) $MM 6.2   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 $MM 1,529.5    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) $MM 63.8   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 production million fbm  607    655    674    2,635    2,595    2,490    
Total lumber sales million fbm  647    686    685    2,680    2,677   2,561    
  Lumber sales - Interfor produced million fbm  639    666    675    2,638    2,594    2,469    
  Lumber sales - wholesale and commission million 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:

    Revolving Senior U.S.  
  Operating Term Secured Operating  
Thousands of Canadian Dollars Line Line Notes Line Total
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 $  -  $ 47,780 297,922  
           
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 shares Dec. 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
       
  Production 440,534 427,418 1,799,825 1,632,922
  Selling and administration 12,142 13,958 52,992 50,775
  Long term incentive compensation expense (recovery) (9,180 ) 3,110 (7,829 ) 12,977
  U.S. countervailing and anti-dumping duty deposits 9,661 1,891 53,337 18,630
  Depreciation of plant and equipment 19,283 19,217 80,273 77,623
  Depletion and amortization of timber, roads and other 8,566 11,879 36,048 38,635
    481,006 477,473 2,014,646 1,831,562
         
Operating earnings (loss) before write-downs and restructuring (12,462 ) 55,308 171,921 158,544
         
Capital asset write-downs and restructuring costs 4,551 7,422 15,304 9,203
Operating earnings (loss) (17,013 ) 47,886 156,617 149,341
         
Finance costs (2,254 ) (3,139 )  (10,410 ) (14,030 )
Other foreign exchange gain (loss) 3,330 412 3,474 (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 ) 44,164 150,869 131,289
           
Income tax expense (recovery):         
  Current (45 ) 356 2,955 1,064
  Deferred (1,473 ) 7,612 36,236 33,072
  (1,518 ) 7,968 39,191 34,136
           
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 tax 29,015 2,297 43,703 (28,854 )
  Loss in fair value of interest rate swaps - - - (11 )
  Total items that are or may be recycled to Net earnings 29,015 2,297 43,703 (28,865 )
Total other comprehensive income (loss), net of tax 26,677 153 44,211 (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 equipment 19,283 19,217 80,273 77,623
    Depletion and amortization of timber, roads and other 8,566 11,879 36,048 38,635
    Income tax expense (recovery) (1,518 ) 7,968 39,191 34,136
    Finance costs 2,254 3,139 10,410 14,030
    Other assets (2,824 ) (4,133 ) (3,000 ) (4,203 )
    Reforestation liability 763 (678 ) 79 1,109
    Provisions and other liabilities (5,024 ) 1,404 (9,204 ) 5,629
    Stock options 216 163 774 583
    Write-down of plant, equipment and intangibles 3,238 7,091 13,925 7,091
    Unrealized foreign exchange loss (gain) (3,801 ) 158 (3,885 ) 147
    Other expense (income) (1,254 ) 1,013 (1,188 ) 1,987
    6,734 83,417 275,101 273,920
  Cash generated from (used in) operating working capital:        
    Trade accounts receivable and other 30,624 1,196 27,392 (19,845 )
    Inventories (2,846 ) (8,988 ) (33,821 ) (14,243 )
    Prepayments 216 2,349 (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 )
  18,037 86,749 255,233 258,224
         
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 equipment 1,846   100 2,355   561  
  Net proceeds from (additions to) investments and other assets 58,555   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 - - 155,909 76,107
  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 currency 7,885 9 10,584 (1,529 )
Increase in cash and cash equivalents 599 59,787 34,552 112,330
         
Cash and cash equivalents, beginning of period 165,553 71,813 131,600 19,270
         
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, 2018 Dec. 31, 2017
       
Assets
Current assets:  
  Cash and cash equivalents $ 166,152 $ 131,600
  Marketable securities 42,863 -
  Trade accounts receivable and other 90,384 112,470
  Income taxes receivable 3,008 1,289
  Inventories 209,178 165,156
  Prepayments 17,307 12,562
    528,892 423,077
     
Employee future benefits 303 502
Deposits and other assets 16,842 6,404
Property, plant and equipment 725,266 670,830
Roads and bridges 29,829 24,092
Timber licences 64,153 66,589
Other intangible assets 5,288 14,170
Goodwill 158,799 147,081
Deferred income taxes 132 251
     
  $ 1,529,504 $ 1,352,996
     
Liabilities and Shareholders’ Equity    
Current liabilities:    
  Trade accounts payable and provisions $ 155,434 $ 152,854
  Reforestation liability 13,947 12,873
  Income taxes payable  356 224
  169,737 165,951
       
Reforestation liability 28,235 27,535
Long term debt 272,840 250,900
Employee future benefits 8,687 8,249
Provisions and other liabilities 17,413 26,976
Deferred income taxes 58,527 19,197
       
Equity:    
  Share capital 537,534 555,388
  Contributed surplus 3,851 8,582
  Translation reserve 84,423 40,720
  Retained earnings 348,257 249,498
     
    974,065 854,188
       
  $ 1,529,504 $ 1,352,996
Approved on behalf of the Board:  
   
 “ L. Sauder ” “ Thomas V. Milroy ”
 Director Director

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