Interfor Reports Q4’22 Results: Adjusted EBITDA loss of $69 million and Net Loss of $72 million

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Forestry will be impacted by climate change

INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a Net loss in Q4’22 of $72.2 million, or $1.40 per share compared to Net earnings of $3.5 million, or $0.06 per share in Q3’22 and $69.7 million, or $1.15 per share in Q4’21.

Adjusted EBITDA was a loss of $68.7 million on sales of $810.3 million in Q4’22 versus Adjusted EBITDA of $129.5 million on sales of $1.0 billion in Q3’22 and Adjusted EBITDA of $149.5 million on sales of $675.9 million in Q4’21.

Notable items in the quarter:

  • Moderating Lumber Demand and Lower Prices
    • Lumber demand moderated during the quarter due in part to rising interest rates across North America, contributing to significantly lower lumber prices quarter-over-quarter. Interfor’s average selling price was $699 per mfbm, down $101 per mfbm versus Q3’22. The SYP Composite, Western SPF Composite, KD H-F Stud 2×4 9’ and ESPF Composite price benchmarks decreased quarter-over-quarter by US$94, US$130, US$166 and US$159 per mfbm to US$461, US$420, US$461 and US$498 per mfbm, respectively.
    • The decline in lumber prices contributed to the Company recording $58.6 million in log and lumber inventory valuation adjustments in Q4’22 compared to $20.5 million in Q3’22.
  • Lumber Production Balanced with Demand
    • Lumber production totaled 874 million board feet, representing a decrease of 112 million board feet quarter-over-quarter. This decrease reflects temporary production curtailments during Q4’22, primarily related to economic conditions and market uncertainty impacting lumber demand and to accelerate ongoing capital and maintenance projects. The decrease was partially offset by the Eatonton, GA and DeQuincy, LA sawmills ramping up to designed production capacity, and the acquisition of Chaleur Forest Products (“Chaleur”).
    • The U.S. South and U.S. Northwest regions accounted for 404 million board feet and 135 million board feet, respectively, compared to 470 million board feet and 159 million board feet in Q3’22. The Eastern Canada region produced 212 million board feet, including 19 million board feet related to Chaleur, versus 198 million board feet in Q3’22. Production in the B.C. region decreased to 123 million board feet from 159 million board feet in Q3’22.
    • Lumber shipments were 939 million board feet, or 125 million board feet lower than Q3’22, leading to a net reduction of lumber inventories by 41 million board feet during the quarter, excluding lumber inventory acquired as part of the Chaleur acquisition. Lumber inventories ended the quarter within our target range. Interfor is continuing to closely manage inventory levels, including announcing on January 11, 2023, a temporary reduction in lumber production for Q1’23 by at least 100 million board feet mostly concentrated outside of the U.S. South region.
  • Financial Flexibility Maintained
    • Net debt at quarter-end was $720.4 million, or 26.2% of invested capital, while available liquidity was ample at $481.2 million.
    • On December 16, 2022, the Company completed an expansion of its Revolving Term Line (“Term Line”). The commitment under the facility increased by $100 million to a total of $600 million.
    • On December 1, 2022, the Company completed US$200 million of long-term debt financing with Prudential Private Capital. The Company’s Senior Secured Notes now total US$489.2 million, with a weighted average interest rate of 5.30% and maturities in the years 2023-2033.
  • Acquisition of Chaleur Forest Products
    • On November 30, 2022, the Company acquired 100% of the equity interests in the entities comprising Chaleur Forest Products from an affiliate of the Kilmer Group. The acquisition includes two modern and well-capitalized sawmill operations with a combined annual lumber production capacity of 350 million board feet, a woodlands management division that manages approximately 30% of the total Crown forest in New Brunswick and the assumption of US$83.5 million of countervailing (“CV”) and anti-dumping (“AD”) duty deposits. The Company paid total consideration of $383.7 million, which was funded from drawings on the Term Line.
  • Strategic Capital Investments
    • Capital spending was $103.4 million, including $63.3 million on discretionary projects. The majority of this discretionary spending was focused on the multi-year rebuild of the Thomaston, GA sawmill, a new planer at the Castlegar, B.C. sawmill and upgrades to the Perry, GA sawmill.
  • Normal Course Issuer Bid (“NCIB”) Renewal
    • On November 3, 2022, the Company announced a renewal of its NCIB commencing on November 11, 2022 and ending on November 10, 2023, for the purchase of up to 5,105,002 common shares, which represents 10% of the Company’s public float. The Company did not purchase any of its common shares during the quarter.
  • Ongoing Monetization of Coastal B.C. Operations
    • As part of the Company’s ongoing strategic review of its Coastal B.C. operations, which has resulted in the divestiture of all its manufacturing capacity in the region and several tenure transfers to date, Interfor has requested the Ministry of Forests to subdivide and transfer a number of forest tenures from its 1.57 million cubic metres of annual harvesting rights.
    • Subject to Ministry approval and certain contractual consents for which timing remains uncertain, the proposed tenure transfers are expected to result in approximately 558,607 cubic metres of the Company’s timber harvesting rights being transferred to First Nation controlled entities, and 104,486 cubic metres being transferred to non-First Nation companies. Interfor is continuing the strategic review of its remaining Coastal B.C. timber harvesting rights, and may request approval for the disposition of additional forest tenures and permits in the future.
  • Softwood Lumber Duties
    • On January 24, 2023, the DoC issued its preliminary CV and AD duty rates of 2.19% and 6.05% for a combined all other rate of 8.24%. The rate is the result of the DoC’s fourth administrative review and is subject to change until its final rate determinations which are expected in mid-2023. At such time, the final rates will be applied to new lumber shipments. No adjustments have been recorded in the financial statements as of December 31, 2022 to reflect the preliminary duty rates announced.
    • Interfor expensed $15.1 million of duties in the quarter, representing the full amount of CV and AD duties incurred on shipments of softwood lumber from its Canadian operations to the U.S. at a combined rate of 8.59%.
    • Interfor has cumulative duties of US$512.3 million, or approximately $9.85 per share after-tax, held in trust by U.S. Customs and Border Protection as at December 31, 2022. Except for US$156.8 million recorded as a receivable in respect of overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.

Outlook

North American lumber markets over the near term are expected to be volatile as the economy continues to adjust to inflationary pressures, higher interest rates, labour shortages and geo-political uncertainty.

Interfor expects that over the mid-term, lumber markets will continue to benefit from favourable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines and constrained overall fibre availability.

Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. Interfor is well positioned with its strong balance sheet and significant available liquidity to continue pursuing its strategic plans despite ongoing economic and geo-political uncertainty globally.   In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.


Financial and Operating Highlights
1

For the three months ended
Dec.31 Dec. 31 Sep. 30 For the year ended Dec. 31
  Unit 2022 2021 2022 2022 2021 2020
Financial Highlights2
Total sales $MM 810.3 675.9 1,035.6 4,584.0 3,289.1 2,183.6
Lumber $MM 656.3 591.5 837.8 3,897.4 2,926.3 1,838.8
Logs, residual products and other $MM 154.0 84.4 197.8 686.6 362.8 344.8
Operating earnings (loss) $MM (114.8) 99.2 75.9 859.6 1,077.9 402.5
Net earnings (loss) $MM (72.2) 69.7 3.5 598.2 819.0 280.3
Net earnings (loss) per share, basic $/share (1.40) 1.15 0.06 10.89 12.88 4.18
Operating cash flow per share (before working capital changes)3,5 $/share (1.75) 2.25 (0.02) 9.45 16.79 7.38
Adjusted EBITDA3 $MM (68.7) 149.5 129.5 1,059.4 1,246.8 549.7
Adjusted EBITDA margin3 % (8.5%) 22.1% 12.5% 23.1% 37.9% 25.2%
Total assets $MM 3,619.8 2,603.5 3,294.6 3,619.8 2,603.5 1,843.2
Total debt $MM 798.0 375.7 396.4 798.0 375.7 382.0
Net debt3 $MM 720.4 (162.9) 249.7 720.4 (162.9) (75.4)
Net debt to invested capital3 % 26.2% (11.1%) 10.5% 26.2% (11.1%) (7.5%)
Annualized return on capital employed3 % (13.8%) 18.2% 5.6% 29.6% 55.7% 26.7%
Operating Highlights
Lumber production million fbm 874 758 986 3,792 2,891 2,377
Lumber sales million fbm 939 719 1,064 3,928 2,852 2,441
Lumber – average selling price4 $/thousand fbm 699 822 800 992 1,026 753
Average USD/CAD exchange rate6 1 USD in CAD 1.3578 1.2603 1.3056 1.3013 1.2535 1.3415
Closing USD/CAD exchange rate6 1 USD in CAD 1.3544 1.2678 1.3707 1.3544 1.2678 1.2732

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 including duties and freight.
  5. Financial information has been adjusted for a reclassification in the presentation of unrealized foreign exchange loss (gain) within cashflow from operations resulting in a $/share change of $0.06 – Q4 2021.
  6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s Net debt at December 31, 2022 was $720.4 million, or 26.2% of invested capital, representing an increase of $883.2 million from the level of Net cash at December 31, 2021.

As at December 31, 2022 the Company had net working capital of $452.6 million and available liquidity of $481.2 million, based on the available borrowing capacity under its $600 million Term Line.

The Term Line and Senior Secured Notes are subject to financial covenants, including a net debt to total capitalization ratio and an EBITDA interest coverage ratio.

Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future.

For the three months ended For the year ended
Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31,
Thousands of Dollars 2022 2021 2022 2022 2021
         
Net debt
Net debt (cash), period opening $249,718 $(133,829) $101,991 $(162,886) $(75,432)
Net issuance (repayment) of Senior Secure Notes 270,160 263,155 (6,671)
Revolving Term Line net drawings 133,430 2,198 129,580 2,199
Impact on U.S. Dollar denominated debt from weakening (strengthening) CAD (1,984) (1,851) 23,741 29,557 (1,813)
Decrease (increase) in cash and cash equivalents 73,812 (31,623) 130,156 480,272 (79,639)
Impact on U.S. Dollar denominated cash and cash equivalents from strengthening (weakening) CAD (4,775) 2,219 (6,170) (19,317) (1,530)
Net debt (cash), period ending $720,361 $(162,886) $249,718 $720,361 $(162,886)

On December 16, 2022, the Company completed an expansion of its Term Line. The commitment under the Term Line has been increased by $100 million to a total of $600 million.

On December 1, 2022, the Company issued US$200 million of Series H Senior Secured Notes, bearing interest at 7.06% with payments of US$66.7 million due on December 26, 2031, 2032 and on final maturity in 2033.

On December 17, 2021, the Company completed an early renewal and expansion of its Term Line. The commitment under the facility was increased by $150 million to a total of $500 million, and the term was extended from March 2024 to December 2026.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of December 31, 2022:

    Revolving Senior  
    Term Secured  
Thousands of Canadian Dollars Line Notes Total
Available line of credit and maximum borrowing available $600,000 $662,527 $1,262,527
Less:  
Drawings 135,440 662,527 797,967
Outstanding letters of credit included in line utilization 60,990 60,990
Unused portion of facility $403,570 $            – 403,570
Add:
Cash and cash equivalents 77,606
Available liquidity at December 31, 2022 $481,176

Interfor’s Term Line matures in December 2026 and its Senior Secured Notes have maturities in the years 2023-2033.

As of December 31, 2022, the Company had commitments for capital expenditures totaling $179.6 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized return on capital employed 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 three months ended
Thousands of Canadian Dollars except number of Dec. 31 Dec. 31 Sept. 30 For the year ended Dec. 31
shares and per share amounts 2022 2021 2022 2022 2021 2020
Adjusted EBITDA
Net earnings (loss) $(72,175) $69,653 $3,501 $598,239 $819,011 $280,296
Add:
Depreciation of plant and equipment 39,594 27,053 40,551 154,905 97,143 78,459
Depletion and amortization of timber, roads and other 11,668 8,397 9,780 39,727 29,430 37,071
Finance costs 4,643 4,425 1,478 15,645 17,830 16,079
Income tax expense (recovery) (40,687) 28,462 35,831 216,644 270,079 89,573
EBITDA (56,957) 137,990 91,141 1,025,160 1,233,493 501,478
Add:
Long-term incentive compensation expense (recovery) (4,202) 8,058 2,503 (8,431) 31,682 12,513
Other foreign exchange loss (gain) (11,274) 4,468 46,918 43,120 2,355 16,881
Other expense (income) excluding business interruption insurance 4,719 (7,816) (11,857) (4,448) (31,338) (336)
Asset write-downs and restructuring costs (recoveries) (1,033) 6,841 763 4,016 10,193 15,264
Post closure wind-down costs 451 3,914
Adjusted EBITDA $(68,747) $149,541 $129,468 $1,059,417 $1,246,836 $549,714
Sales $810,361 $675,895 $1,035,597 $4,584,045 $3,289,146 $2,183,609
Adjusted EBITDA margin (8.5%) 22.1% 12.5% 23.1% 37.9% 25.2%
Net debt to invested capital
Net debt
Total debt $797,967 $375,675 $396,361 $797,967 $375,675 $381,960
Cash and cash equivalents (77,606) (538,561) (146,643) (77,606) (538,561) (457,392)
Total net debt $720,361 $(162,886) $249,718 $720,361 $(162,886) $(75,432)
Invested capital
Net debt $720,361 $(162,886) $249,718 $720,361 $(162,886) $(75,432)
Shareholders’ equity 2,027,038 1,635,973 2,123,307 2,027,038 1,635,973 1,080,312
Total invested capital $2,747,399 $1,473,087 $2,373,025 $2,747,399 $1,473,087 $1,004,880
Net debt to invested capital (1) 26.2% (11.1%) 10.5% 26.2% (11.1%) (7.5%)
Operating cash flow per share (before working capital changes)(2)
Cash provided by operating activities $10,306 $86,203 $47,031 $732,357 $1,052,381 $526,784
Cash used in (generated from) operating working capital (100,284) 50,729 (47,908) (213,469) 15,093 (31,774)
Operating cash flow (before working capital changes) $(89,978) $136,932 $(877) $518,888 $1,067,474 $495,010
Weighted average number of shares – basic (‘000) 51,435 60,787 54,096 54,916 63,593 67,119
Operating cash flow per share (before working capital changes) $(1.75) $2.25 $(0.02) $9.45 $16.79 $7.38
Annualized return on capital employed
Net earnings (loss) $(72,175) $69,653 $3,501 $598,239 $819,011 $280,296
Add:
Finance costs 4,643 4,425 1,478 15,645 17,830 16,079
Income tax expense (recovery) (40,687) 28,462 35,831 216,644 270,079 89,573
Earnings (loss) before income taxes and finance costs $(108,219) $102,540 $40,810 $830,528 $1,106,920 $385,948
Capital employed
Total assets $3,619,833 $2,603,510 $3,294,576 $3,619,833 $2,603,510 $1,843,187
Current liabilities (325,997) (321,642) (378,779) (325,997) (321,642) (189,726)
Less:
Bank indebtedness 2,202 2,202
Current portion of long-term debt 7,336 6,868 7,425 7,336 6,868 6,897
Current portion of lease liabilities 14,796 12,239 15,578 14,796 12,239 11,745
Capital employed, end of period $3,315,968 $2,303,177 $2,938,800 $3,315,968 $2,303,177 $1,672,103
Capital employed, beginning of period 2,938,800 2,200,165 2,869,881 2,303,177 1,672,103 1,214,375
Average capital employed $3,127,384 $2,251,671 $2,904,340 $2,809,573 $1,987,640 $1,443,239
Earnings (loss) before income taxes and finance
costs divided by average capital employed
(3.5%) 4.6% 1.4% 29.6% 55.7% 26.7%
Annualization factor 4.0 4.0 4.0 1.0 1.0 1.0
Annualized return on capital employed (13.8%) 18.2% 5.6% 29.6% 55.7% 26.7%
Notes:
(1) Net debt to invested capital as of the period end.
(2) Financial information has been adjusted for a reclassification in the presentation of unrealized foreign exchange loss (gain) within cashflow from operations resulting in a $/share change of $0.06 – Q4 2021.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three months and years ended December 31, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars except per share amounts) Three Months Three Months Year Ended Year Ended
Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Sales $810,361 $675,895 $4,584,045 $3,289,146
Costs and expenses:
Production 846,165 508,249 3,382,127 1,948,239
Selling and administration 17,796 13,679 67,174 52,421
Long-term incentive compensation expense (recovery) (4,202) 8,058 (8,431) 31,682
U.S. countervailing and anti-dumping duty deposits 15,147 4,426 84,912 42,101
Depreciation of plant and equipment 39,594 27,053 154,905 97,143
Depletion and amortization of timber, roads and other 11,668 8,397 39,727 29,430
926,168 569,862 3,720,414 2,201,016
Operating earnings (loss) before asset write-downs and restructuring costs (115,807) 106,033 863,631 1,088,130
Asset write-downs and restructuring costs 1,033 (6,841) (4,016) (10,193)
Operating earnings (loss) (114,774) 99,192 859,615 1,077,937
Finance costs (4,643) (4,425) (15,645) (17,830)
Other foreign exchange gain (loss) 11,274 (4,468) (43,120) (2,355)
Other income (expense) (4,719) 7,816 14,033 31,338
1,912 (1,077) (44,732) 11,153
Earnings (loss) before income taxes (112,862) 98,115 814,883 1,089,090
Income tax expense (recovery):
Current (58,309) 1,889 184,597 205,465
Deferred 17,622 26,573 32,047 64,614
(40,687) 28,462 216,644 270,079
Net earnings (loss) $(72,175) $69,653 $598,239 $819,011
Net earnings (loss) per share
Basic $(1.40) $1.15 $10.89 $12.88
Diluted $(1.40) $1.14 $10.86 $12.84
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three months and years ended December 31, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars) Three Months Three Months Year Ended Year Ended
Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Net earnings (loss) ($72,175) $69,653 $598,239 $819,011
Other comprehensive income (loss):
Items that will not be recycled to Net earnings (loss):
Defined benefit plan actuarial gain, net of tax 1,226 1,184 1,746 7,729
Items that are or may be recycled to Net earnings (loss):
Foreign currency translation differences for foreign operations, net of tax (25,421) (2,504) 117,465 8,574
Total other comprehensive income (loss), net of tax (24,195) (1,320) 119,211 16,303
Comprehensive income (loss) ($96,370) $68,333 $717,450 $835,314

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months and years ended December 31, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars) Three Months Three Months Year Ended Year Ended
Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021
Cash provided by (used in):
Operating activities:
Net earnings (loss) ($72,175) $69,653 $598,239 $819,011
Items not involving cash:
Depreciation of plant and equipment 39,594 27,053 154,905 97,143
Depletion and amortization of timber, roads and other 11,668 8,397 39,727 29,430
Income tax expense (recovery) (40,687) 28,462 216,644 270,079
Finance costs 4,643 4,425 15,645 17,830
Other assets (181) (4,354) (30,201) (4,285)
Reforestation liability 1,524 861 (1,325) (863)
Provisions and other liabilities (2,722) 5,594 (30,244) 15,867
Stock options 274 254 965 864
Write-down of plant, equipment and other 2,597 3,176 5,637
Unrealized foreign exchange loss (gain) (13,487) 4,932 37,437 2,950
Other income (expense) 4,719 (7,816) (14,033) (31,338)
Income taxes paid (23,148) (3,126) (472,047) (154,851)
(89,978) 136,932 518,888 1,067,474
Cash generated from (used in) operating working capital:
Trade accounts receivable and other 100,364 (12,575) 135,437 (29,163)
Inventories 65,511 (57,221) 140,959 (53,192)
Prepayments 6,525 4,800 672 1,834
Trade accounts payable and provisions (72,116) 14,267 (63,599) 65,428
10,306 86,203 732,357 1,052,381
Investing activities:
Additions to property, plant and equipment (94,152) (59,618) (288,594) (160,231)
Additions to roads and bridges (9,209) (3,378) (16,855) (16,507)
Additions to timber licences and other intangible assets (29) (29)
Acquisitions, net of cash acquired (375,358) (911,445) (539,941)
Proceeds on disposal of property, plant and equipment and other 57 13,752 32,068 59,501
Investment in GreenFirst Forest Products Inc. (55,648)
Net proceeds from (additions to) deposits and other assets 24 825 (3,214) 714
(478,638) (48,448) (1,243,688) (656,493)
Financing activities:
Issuance of share capital, net of expenses 323 429 2,977
Share repurchases, net of expenses (173) (327,779) (152,869)
Dividend paid (130,625)
Interest payments (3,956) (4,143) (17,073) (16,783)
Lease liability payments (4,457) (3,355) (16,506) (13,322)
Debt refinancing costs (484) (1,155) (747) (1,155)
Term line net drawings 133,430 2,198 129,580 2,199
Additions to Senior Secured Notes 270,160 270,160
Repayments of Senior Secured Notes (7,005) (6,671)
394,520 (6,132) 31,059 (316,249)
Foreign exchange gain (loss) on cash and
cash equivalents held in a foreign currency 4,775 (2,219) 19,317 1,530
Increase (decrease) in cash (69,037) 29,404 (460,955) 81,169
Cash and cash equivalents, beginning of period 146,643 509,157 538,561 457,392
Cash and cash equivalents, end of period $77,606 $538,561 $77,606 $538,561

 

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2022 and December 31, 2021 (unaudited)
(thousands of Canadian Dollars) Dec. 31, 2022 Dec. 31, 2021
Assets
Current assets:
Cash and cash equivalents $77,606 $538,561
Trade accounts receivable and other 174,053 147,764
Income tax receivable 104,082 12,776
Inventories 396,908 250,481
Prepayments 25,932 16,125
778,581 965,707
Employee future benefits 18,445 8,338
Deposits and other assets 281,628 52,221
Right of use assets 33,998 33,547
Property, plant and equipment 1,701,197 1,067,754
Roads and bridges 38,050 27,101
Timber licences 178,443 106,136
Goodwill and other intangible assets 588,098 342,291
Deferred income taxes 1,393 415
$3,619,833 $2,603,510
Liabilities and Shareholders’ Equity
Current liabilities:
Bank indebtedness $        – $2,202
Trade accounts payable and provisions 285,604 218,825
Current portion of long-term debt 7,336 6,868
Reforestation liability 17,926 16,670
Lease liabilities 14,796 12,239
Income taxes payable 335 64,838
325,997 321,642
Reforestation liability 28,671 29,250
Lease liabilities 20,456 26,850
Long-term debt 790,631 366,605
Employee future benefits 9,888 9,069
Provisions and other liabilities 24,166 43,686
Deferred income taxes 392,986 170,435
Equity:
Share capital 408,713 484,721
Contributed surplus 5,475 4,694
Translation reserve 175,885 58,420
Retained earnings 1,436,965 1,088,138
2,027,038 1,635,973
$3,619,833 $2,603,510

Approved on behalf of the Board:

L. Sauder T.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. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy. 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 and Analysis under the heading “Risks and Uncertainties”, which are 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 the existence of a public health crisis; volatility in the 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; natural or man-made disasters; currency exchange rates; changes in government regulations; Indigenous reconciliation; the softwood lumber trade dispute between Canada and the U.S.; environmental impacts of the Company’s operations; labour availability; and information systems security. Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual lumber production capacity of approximately 5.2 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

The Company’s 2022 audited consolidated financial statements and Management’s Discussion and Analysis are available at www.sedar.com and www.interfor.com.

There will be a conference call on Friday, February 10, 2023 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 2022 financial results.

The dial-in number is 1-888-396-8049. The conference call will also be recorded for those unable to join in for the live discussion and will be available until March 10, 2023. The number to call is 1-877-674-7070, Passcode 472356#.

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