Interfor Corporation announced that it has reached an agreement with Georgia-Pacific Wood Products LLC and GP Wood Products LLC to acquire four of its sawmill operations located in Bay Springs, MS, Fayette, AL, DeQuincy, LA and Philomath. The total purchase price of US$375 MM, which includes working capital, will be funded entirely from cash on hand. The Sawmill Operations are highly complementary to Interfor’s existing platforms in the US South and the US Northwest, and the acquisition will support accelerated growth and enhance the Company’s position to benefit from robust market conditions. The acquisition will be immediately accretive to Interfor’s earnings and is expected to provide attractive returns in both the near-term and over the long-term.
The company reported net sales of $436.7 million for the fourth quarter of 2017, up 2.6% compared to net sales of $425.6 million for the fourth quarter of 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the fourth quarter of 2017 were $80.9 million, or $4.88 per diluted share, compared to net earnings for the fourth quarter of 2016 of $9.3 million, or $0.56 per diluted share. The increase in net earnings primarily consisted of a benefit related to recent tax law changes. Excluding this tax benefit and certain other non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, fourth quarter 2017 adjusted net earnings were $14.4 million, or $0.87 per diluted share, compared to fourth quarter 2016 adjusted net earnings of $13.8 million, or $0.82 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, were $52.2 million for the fourth quarter of 2017 compared to $49.3 million for the fourth quarter of 2016. Adjusted EBITDA for the quarter was $57.5 million, up 6.3% compared to fourth quarter 2016 Adjusted EBITDA of $54.1 million. The $3.4 million increase in Adjusted EBITDA in the fourth quarter of 2017 was primarily a result of higher paperboard pricing and volumes, improved consumer product mix, and lower general maintenance costs. Additional factors for the increase included lower wage and benefits expense resulting from warehouse automation projects at several of the company’s facilities, the shutdown of two higher cost tissue machines at the company’s Neenah, Wisconsin mill at the end of 2016 and the closure of the company’s Oklahoma City converting facility in March 2017. These factors were partially offset by lower non-retail tissue shipment volumes and higher input costs for pulp, transportation and energy.
“We had a strong finish to 2017 due to improved operating efficiencies resulting from the completion of our three-year strategic capital projects, including warehouse automation and the continuous pulp digester at our Lewiston, Idaho mill,” said Linda K. Massman, president and chief executive officer. “We also had increased paperboard sales and shipments and ultra-quality tissue sales, partially offset by very competitive market conditions in the retail industry and higher transportation costs.
“Throughout 2018, we will remain focused on efforts to increase our margins and ultimately cash flow to build a solid foundation for our long-term success and create shareholder value,” said Massman. “Our efforts include the vital work of realigning portions of our company in both tissue and paperboard, and investing in our business to meet customer needs as reflected in the ongoing investment in our Shelby, North Carolina facility.”
more detail at: http://ir.clearwaterpaper.com/news-releases/news-release-details/clearwater-paper-reports-fourth-quarter-and-full-year-2017