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Interfor Reports Q4’20 Results

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Interfor Corporation
·22 min read
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EBITDA1 of $249 million on Sales of $662 million
Net Cash Position and Available Liquidity of $788 million

BURNABY, British Columbia, Feb. 04, 2021 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded Net earnings in Q4’20 of $149.1 million, or $2.24 per share, compared to $121.6 million, or $1.81 per share in Q3’20 and Net loss of $41.7 million, or $0.62 per share in Q4’19. Adjusted net earnings in Q4’20 was $164.7 million compared to $140.0 million in Q3’20 and Adjusted net loss of $17.4 million in Q4’19.

Adjusted EBITDA was a record $248.6 million on sales of $662.3 million in Q4’20 versus $221.7 million on sales of $644.9 million in Q3’20.

Interfor recorded Net earnings of $280.3 million, or $4.18 per share, in 2020, compared to Net loss of $103.8 million, or $1.54 per share in 2019. Adjusted EBITDA was $549.7 million on sales of $2.2 billion.

Notable items in the quarter:

• Strong Free Cash Flow Generation

  • Interfor generated $205.0 million of cash flow from operations before changes in working capital, or $3.07 per share, and an additional $24.9 million of cash from reduced working capital.

  • Capital spending was $36.0 million, including $21.7 million on high-return discretionary projects primarily in the U.S. South. US$96.1 million has been spent on the Company’s Phase II strategic capital plan through December 31, 2020.

  • Net debt ended the quarter at $(75.4) million, or (7.5)% of invested capital, resulting in available liquidity of $787.5 million.

• Seasonally Robust Lumber Market

  • Interfor’s average selling price was $842 per mfbm, down $68 per mfbm versus record levels in Q3’20. Movements in key benchmark prices were mixed compared to Q3’20 as the SYP Composite and Western SPF Composite benchmarks decreased by US$145 and US$59 to US$603 and US$652 per mfbm, respectively, while the KD H-F Stud 2x4 9’ benchmark increased by US$43 to US$807 per mfbm.

• Production Increased to Meet Demand

  • Total lumber production in Q4’20 was 687 million board feet, representing an increase of 45 million board feet quarter-over-quarter. The U.S. South and U.S. Northwest regions accounted for 361 million board feet and 136 million board feet, respectively, compared to 331 million board feet and 118 million board feet in Q3’20. Production in the B.C. region decreased to 190 million board feet from 193 million board feet in the preceding quarter.

  • Total lumber shipments were 683 million board feet, including agency and wholesale volumes, or 65 million board feet higher than Q3’20.

• Softwood Lumber Duties Rate Adjustment

  • In Q4'20, the U.S. Department of Commerce published the final rates for countervailing (“CV”) and anti-dumping (“AD”) duties based on the results of its first administrative review of shipments for the years ended December 31, 2017 and 2018. The final combined rates for 2017 and 2018 were 8.83% and 8.99% respectively, compared to the cash deposit rate of 20.23%. To reflect lower amended final rates, Interfor recorded a $38.4 million reduction to duties expense in Q4'20.

    Effective December 2020, the final rate of 8.99% was applied to new lumber shipments.

  • Cumulative duties of US$134.0 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.

1 Refer to Adjusted EBITDA in the Non-GAAP Measures section

Normal Course Issuer Bid (“NCIB”)

On November 5, 2020, the Company announced a NCIB commencing on November 11, 2020 and ending on November 10, 2021, for the purchase of up to 5,981,751 common shares. During Q4 2020, Interfor purchased 1,327,420 common shares under the Company’s NCIB for total consideration of $24.4 million.

The Company believes that, from time to time, the market price of its common shares may be attractive and their purchase would represent a prudent allocation of capital.

Outlook

North American lumber markets over the near term are expected to remain robust and above historical trends, albeit volatile, as relatively low levels of lumber inventories industry-wide combined with demand ahead of the 2021 home building and renovation season put pressure on available lumber supply from manufacturers.

Interfor expects lumber demand to continue to grow over the mid-term, as repair and renovation activities and U.S. housing starts benefit from favourable underlying economic fundamentals and trends.

Interfor’s strategy of maintaining a diversified portfolio of operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle.

While uncertainty remains as to the duration and extent of the economic impact from the COVID-19 pandemic, Interfor is well positioned with its strong balance sheet and significant available liquidity.

Financial and Operating Highlights1

For the three months ended

Dec. 31

Dec. 31

Sept. 30

For the year ended Dec. 31

Unit

2020

2019

2020

2020

2019

20182

Financial Highlights3

Total sales

$MM

662.3

456.8

644.9

2,183.6

1,875.8

2,186.6

Lumber

$MM

575.0

385.2

562.4

1,838.8

1,576.1

1,841.0

Logs, residual products and other

$MM

87.3

71.6

82.5

344.8

299.7

345.6

Operating earnings (loss)

$MM

203.2

(49.0

)

171.4

402.5

(128.8

)

157.9

Net earnings (loss)

$MM

149.1

(41.7

)

121.6

280.3

(103.8

)

111.1

Net earnings (loss) per share, basic

$/share

2.24

(0.62

)

1.81

4.18

(1.54

)

1.59

Adjusted net earnings (loss)4

$MM

164.7

(17.4

)

140.0

316.1

(58.1

)

113.5

Adjusted net earnings (loss) per share, basic4

$/share

2.47

(0.26

)

2.08

4.71

(0.86

)

1.63

Operating cash flow per share (before working capital changes)4

$/share

3.07

0.24

3.19

7.39

0.68

4.12

Adjusted EBITDA4

$MM

248.6

17.6

221.7

549.7

63.4

291.6

Adjusted EBITDA margin4

%

37.5

%

3.9

%

34.4

%

25.2

%

3.4

%

13.3

%

Total assets

$MM

1,843.2

1,341.9

1,731.9

1,843.2

1,341.9

1,565.3

Total debt

$MM

382.0

259.8

400.2

382.0

259.8

272.8

Net debt4

$MM

(75.4

)

224.9

88.7

(75.4

)

224.9

63.8

Net debt to invested capital4

%

(7.5

)%

21.3

%

8.3

%

(7.5

)%

21.3

%

6.2

%

Annualized return on invested capital4

%

95.8

%

6.6

%

81.3

%

53.4

%

6.1

%

29.1

%

Operating Highlights

Lumber production

million fbm

687

668

642

2,377

2,646

2,635

Total lumber sales

million fbm

683

681

618

2,441

2,668

2,680

Lumber sales - Interfor produced

million fbm

675

671

609

2,404

2,626

2,638

Lumber sales - wholesale and commission

million fbm

8

10

9

37

42

42

Lumber - average selling price5

$/thousand fbm

842

566

910

753

591

687

Average USD/CAD exchange rate6

1 USD in CAD

1.3030

1.3200

1.3321

1.3415

1.3269

1.2957

Closing USD/CAD exchange rate6

1 USD in CAD

1.2732

1.2988

1.3339

1.2732

1.2988

1.3642

Notes:

  1. Figures in this table may not equal or sum to figures presented elsewhere due to rounding.

  2. Financial information has been restated for implementation of IFRS 16, Leases.

  3. Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.

  4. 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.

  5. Gross sales before duties.

  6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s Net debt at December 31, 2020 was $(75.4) million, or (7.5)% of invested capital, representing a decrease of $300.3 million from the level of Net debt at December 31, 2019.

As at December 31, 2020 the Company had net working capital of $563.4 million and available liquidity of $787.5 million, based on the full borrowing capacity under its $350 million Revolving Term Line.

The Revolving Term Line and Senior Secured Notes are subject to financial covenants, including net debt to total capitalization ratios, 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

2020

2019

2020

2020

2019

Net debt

Net debt, period opening

$

88,705

$

212,674

$

239,114

$

224,860

$

63,825

Issuance of Senior Secure Notes

-

-

-

140,770

-

Term Line net drawings (repayments)

-

(1

)

(23

)

(82

)

754

Impact on U.S. Dollar denominated debt from strengthening CAD

(18,210

)

(5,099

)

(8,647

)

(18,488

)

(13,834

)

Decrease (increase) in cash and cash equivalents

(165,294

)

16,994

(144,849

)

(450,767

)

127,659

Decrease in marketable securities

-

-

-

-

41,766

Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening CAD

19,367

292

3,110

28,275

4,690

Net debt, period ending

$

(75,432

)

$

224,860

$

88,705

$

(75,432

)

$

224,860

On March 26, 2020, the Company issued US$50,000,000 of Series F Senior Secured Notes, bearing interest at 3.34%, and US$50,000,000 of Series G Senior Secured Notes, bearing interest at 3.25%. Each series of these Senior Secured Notes have equal payments of US$16,667,000 due on each of March 26, 2028, 2029 and on maturity in 2030.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of December 31, 2020:

Revolving

Senior

Term

Secured

Thousands of Canadian Dollars

Line

Notes

Total

Available line of credit and maximum borrowing available

$

350,000

$

381,960

$

731,960

Less:

Drawings

-

381,960

381,960

Outstanding letters of credit included in line utilization

19,887

-

19,887

Unused portion of facility

$

330,113

$

-

330,113

Add:

Cash and cash equivalents

457,392

Available liquidity at December 31, 2020

$

787,505

Interfor’s Revolving Term Line matures in March 2024 and its Senior Secured Notes have maturities principally in the years 2024-2030.

As of December 31, 2020, the Company had commitments for capital expenditures totaling $70.1 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings (loss), Adjusted net earnings (loss) per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized return on invested capital 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 shares

Dec. 31

Dec. 31

Sept. 30

For the year ended Dec.31

and per share amounts

2020

2019

2020

2020

2019

20181

Adjusted Net Earnings (Loss)

Net earnings (loss)

$

149,148

$

(41,676

)

$

121,604

$

280,296

$

(103,785

)

$

111,058

Add:

Asset and goodwill write-downs and restructuring costs

1,793

30,416

12,985

15,264

63,982

15,304

Other foreign exchange loss (gain)

8,162

510

2,907

16,881

275

(3,474

)

Long term incentive compensation expense (recovery)

10,254

1,265

5,576

12,513

3,446

(7,829

)

Other (income) expense

92

298

43

(336

)

(5,925

)

(1,188

)

Post closure wind-down costs

949

-

3,085

4,034

-

4

Income tax effect of above adjustments

(5,652

)

(8,241

)

(6,206

)

(12,527

)

(16,117

)

(396

)

Adjusted net earnings (loss)

$

164,746

$

(17,428

)

$

139,994

$

316,125

$

(58,124

)

$

113,479

Weighted average number of shares - basic ('000)

66,687

67,257

67,270

67,119

67,277

69,713

Adjusted net earnings (loss) per share

$

2.47

$

(0.26

)

$

2.08

$

4.71

$

(0.86

)

$

1.63

Adjusted EBITDA

Net earnings (loss)

$

149,148

$

(41,676

)

$

121,604

$

280,296

$

(103,785

)

$

111,058

Add:

Depreciation of plant and equipment

21,947

20,711

20,850

78,459

80,438

80,065

Depletion and amortization of timber, roads and other

10,511

14,214

7,922

37,071

44,294

46,148

Asset and goodwill write-downs and restructuring costs

1,793

30,416

12,985

15,264

63,982

15,304

Finance costs

1,891

3,740

4,907

16,079

15,024

12,452

Other foreign exchange loss (gain)

8,162

510

2,907

16,881

275

(3,474

)

Income tax expense (recovery)

43,889

(11,851

)

41,916

89,573

(34,359

)

39,092

EBITDA

237,341

16,064

213,091

533,623

65,869

300,645

Add:

Long term incentive compensation expense (recovery)

10,254

1,265

5,576

12,513

3,446

(7,829

)

Other (income) expense

92

298

43

(336

)

(5,925

)

(1,188

)

Post closure wind-down costs

947

-

2,967

3,914

-

4

Adjusted EBITDA

$

248,634

$

17,627

$

221,677

$

549,714

$

63,390

$

291,632

Sales

$

662,301

$

456,819

$

644,884

$

2,183,609

$

1,875,821

$

2,186,567

Adjusted EBITDA margin

37.5

%

3.9

%

34.4

%

25.2

%

3.4

%

13.3

%

Net debt to invested capital

Net debt

Total debt

$

381,960

$

259,760

$

400,170

$

381,960

$

259,760

$

272,840

Cash and cash equivalents

(457,392

)

(34,900

)

(311,465

)

(457,392

)

(34,900

)

(166,152

)

Marketable securities

-

-

-

-

-

(42,863

)

Total net debt

$

(75,432

)

$

224,860

$

88,705

$

(75,432

)

$

224,860

$

63,825

Invested capital

Net debt

$

(75,432

)

$

224,860

$

88,705

$

(75,432

)

$

224,860

$

63,825

Shareholders' equity

1,080,312

830,982

983,225

1,080,312

830,982

968,766

Total invested capital

$

1,004,880

$

1,055,842

$

1,071,930

$

1,004,880

$

1,055,842

$

1,032,591

Net debt to invested capital2

(7.5

)%

21.3

%

8.3

%

(7.5

)%

21.3

%

6.2

%

Operating cash flow per share (before working capital changes)

Cash provided by operating activities

$

229,947

$

24,642

$

175,492

$

526,784

$

28,252

$

265,612

Cash used in (generated from) operating working capital

(24,929

)

(8,334

)

39,346

(30,942

)

17,322

21,457

Operating cash flow (before working capital changes)

$

205,018

$

16,308

$

214,838

$

495,842

$

45,574

$

287,069

Weighted average number of shares - basic ('000)

66,687

67,257

67,270

67,119

67,277

69,713

Operating cash flow per share (before working capital changes)

$

3.07

$

0.24

$

3.19

$

7.39

$

0.68

$

4.12

Annualized return on invested capital

Adjusted EBITDA

$

248,634

$

17,627

$

221,677

$

549,714

$

63,390

$

291,632

Invested capital, beginning of period

$

1,071,930

$

1,093,528

$

1,108,557

$

1,055,842

$

1,032,591

$

968,852

Invested capital, end of period

1,004,880

1,055,842

1,071,930

1,004,880

1,055,842

1,032,591

Average invested capital

$

1,038,405

$

1,074,685

$

1,090,244

$

1,030,361

$

1,044,217

$

1,000,722

Adjusted EBITDA divided by average invested capital

23.9

%

1.6

%

20.3

%

53.4

%

6.1

%

29.1

%

Annualization factor

4.0

4.0

4.0

1.0

1.0

1.0

Annualized return on invested capital

95.8

%

6.6

%

81.3

%

53.4

%

6.1

%

29.1

%

Notes:

  1. Financial information has been restated for implementation of IFRS 16, Leases.

  2. Net debt to invested capital as of the period end.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

For the three months and year ended December 31, 2020 and 2019 (unaudited)

(thousands of Canadian Dollars except earnings per share)

Three Months

Three Months

Year

Year

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2020

Dec. 31, 2019

Sales

$

662,301

$

456,819

$

2,183,609

$

1,875,821

Costs and expenses:

Production

428,208

418,954

1,583,033

1,728,394

Selling and administration

10,297

8,992

40,961

38,748

Long term incentive compensation expense

10,254

1,265

12,513

3,446

U.S. countervailing and anti-dumping duty deposits (receivable)

(23,891

)

11,246

13,815

45,289

Depreciation of plant and equipment

21,947

20,711

78,459

80,438

Depletion and amortization of timber, roads and other

10,511

14,214

37,071

44,294

457,326

475,382

1,765,852

1,940,609

Operating earnings (loss) before write-downs and

restructuring costs

204,975

(18,563

)

417,757

(64,788

)

Asset and goodwill write-downs and restructuring costs

(1,793

)

(30,416

)

(15,264

)

(63,982

)

Operating earnings (loss)

203,182

(48,979

)

402,493

(128,770

)

Finance costs

(1,891

)

(3,740

)

(16,079

)

(15,024

)

Other foreign exchange loss

(8,162

)

(510

)

(16,881

)

(275

)

Other income (expense)

(92

)

(298

)

336

5,925

(10,145

)

(4,548

)

(32,624

)

(9,374

)

Earnings (loss) before income taxes

193,037

(53,527

)

369,869

(138,144

)

Income tax expense (recovery):

Current

5,392

(783

)

7,043

26

Deferred

38,497

(11,068

)

82,530

(34,385

)

43,889

(11,851

)

89,573

(34,359

)

Net earnings (loss)

$

149,148

$

(41,676

)

$

280,296

$

(103,785

)

Net earnings (loss) per share, basic and diluted

$

2.24

$

(0.62

)

$

4.18

$

(1.54

)


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the three months and year ended December 31, 2020 and 2019 (unaudited)

(thousands of Canadian Dollars)

Three Months

Three Months

Year

Year

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2020

Dec. 31, 2019

Net earnings (loss)

$

149,148

$

(41,676

)

$

280,296

$

(103,785

)

Other comprehensive income (loss):

Items that will not be recycled to Net earnings (loss):

Defined benefit plan actuarial gain (loss), net of tax

458

1,621

(907

)

603

Items that are or may be recycled to Net earnings (loss):

Foreign currency translation differences for

foreign operations, net of tax

(28,569

)

(10,053

)

(6,913

)

(27,634

)

Total other comprehensive loss, net of tax

(28,111

)

(8,432

)

(7,820

)

(27,031

)

Comprehensive income (loss)

$

121,037

$

(50,108

)

$

272,476

$

(130,816

)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months and year ended December 31, 2020 and 2019 (unaudited)

(thousands of Canadian Dollars)

Three Months

Three Months

Year

Year

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2020

Dec. 31, 2019

Cash provided by (used in):

Operating activities:

Net earnings (loss)

$

149,148

$

(41,676

)

$

280,296

$

(103,785

)

Items not involving cash:

Depreciation of plant and equipment

21,947

20,711

78,459

80,438

Depletion and amortization of timber, roads and other

10,511

14,214

37,071

44,294

Income tax expense (recovery)

43,889

(11,851

)

89,573

(34,359

)

Finance costs

1,891

3,740

16,079

15,024

Other assets

(37,881

)

1,371

(37,040

)

1,894

Reforestation liability

(61

)

1,291

(2,050

)

(1,286

)

Provisions and other liabilities

6,198

(1,586

)

5,536

3,620

Stock options

253

151

866

692

Write-down of plant, equipment, goodwill and other

-

29,100

9,754

45,494

Unrealized foreign exchange loss

9,031

544

17,634

554

Gain on lease modifications

(75

)

(1,140

)

(308

)

(1,140

)

Other expense (income)

167

1,439

(28

)

(5,866

)

205,018

16,308

495,842

45,574

Cash generated from (used in) operating working capital:

Trade accounts receivable and other

70,342

26,706

(30,206

)

1,517

Inventories

(35,380

)

(5,450

)

22,024

22,632

Prepayments

(2,734

)

2,639

(1,036

)

(4,443

)

Trade accounts payable and provisions

(5,714

)

(15,851

)

40,992

(36,446

)

Income taxes paid

(1,585

)

290

(832

)

(582

)

229,947

24,642

526,784

28,252

Investing activities:

Additions to property, plant and equipment

(29,990

)

(31,864

)

(95,714

)

(158,645

)

Additions to roads and bridges

(5,840

)

(5,175

)

(14,669

)

(22,447

)

Additions to timber licences and other intangible assets

(160

)

-

(160

)

(77

)

Acquisition of timber license, roads and other assets

net of assumed liabilities

-

-

(56,606

)

-

Proceeds on disposal of property, plant and equipment and other

3,896

431

4,992

8,880

Net proceeds from (additions to) marketable securities,

deposits and other assets

(585

)

1,208

(462

)

48,338

(32,679

)

(35,400

)

(162,619

)

(123,951

)

Financing activities:

Issuance of share capital, net of expenses

227

85

418

165

Share repurchases

(24,430

)

-

(24,430

)

(7,825

)

Interest payments

(4,534

)

(3,345

)

(17,626

)

(12,193

)

Lease payments

(3,255

)

(2,946

)

(12,315

)

(11,638

)

Debt refinancing costs

18

(29

)

(133

)

(1,223

)

Operating line net drawings (repayments)

-

(1

)

(82

)

4

Additions to long term debt

-

-

140,770

197,925

Repayments of long term debt

-

-

-

(197,175

)

(31,974

)

(6,236

)

86,602

(31,960

)

Foreign exchange loss on cash and cash

equivalents held in a foreign currency

(19,367

)

(292

)

(28,275

)

(3,593

)

Increase (decrease) in cash

145,927

(17,286

)

422,492

(131,252

)

Cash and cash equivalents, beginning of period

311,465

52,186

34,900

166,152

Cash and cash equivalents, end of period

$

457,392

$

34,900

$

457,392

$

34,900


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December 31, 2020 and 2019 (unaudited)

(thousands of Canadian Dollars)

Dec. 31, 2020

Dec. 31, 2019

Assets

Current assets:

Cash and cash equivalents

$

457,392

$

34,900

Trade accounts receivable and other

117,371

86,608

Income taxes receivable

169

1,995

Inventories

160,188

181,577

Prepayments

17,970

20,449

753,090

325,529

Employee future benefits

106

673

Deposits and other assets

48,957

9,296

Right of use assets

35,471

32,780

Property, plant and equipment

729,163

739,515

Roads and bridges

22,379

24,353

Timber licences

114,953

60,596

Goodwill and other intangible assets

138,838

142,214

Deferred income taxes

230

6,961

$

1,843,187

$

1,341,917

Liabilities and Shareholders’ Equity

Current liabilities:

Trade accounts payable and provisions

$

150,509

$

114,358

Current portion of long term debt

6,897

-

Reforestation liability

16,181

13,021

Lease liabilities

11,745

10,105

Income taxes payable

4,394

163

189,726

137,647

Reforestation liability

29,735

27,401

Lease liabilities

28,541

27,718

Long term debt

375,063

259,760

Employee future benefits

11,137

11,843

Provisions and other liabilities

26,637

18,957

Deferred income taxes

102,036

27,609

Equity:

Share capital

523,605

533,685

Contributed surplus

5,157

4,471

Translation reserve

49,846

56,759

Retained earnings

501,704

236,067

1,080,312

830,982

$

1,843,187

$

1,341,917

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 & 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 report include 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; 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 trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia (“B.C.”); environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crisis (such as the current COVID-19 pandemic). 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 production capacity of approximately 3.0 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 2020 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 5, 2021 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 2020 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 5, 2021. The number to call is 1-855-859-2056, Passcode 5389783.

For further information:
Richard Pozzebon, Senior Vice President and Chief Financial Officer
(604) 689-6800