Interfor Reports Q4’20 Results

*EBITDA1 of $249 million on Sales of $662 million
*Net Cash Position and Available Liquidity of $788 million

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 2×4 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.
details at: https://interfor.com/wp-content/uploads/2021/02/Interfor-Reports-Q420-Results.pdf

Related Posts

Mativ Announces First Quarter 2023 Results

Mativ First Quarter 2023 Highlights *Sales increased 66.9% to $679.0 million, reflecting the benefit of the merger; 1% constant currency organic sales growth *GAAP loss was $7.7 million, GAAP EPS was $(0.14), and GAAP Operating Profit was $9.3 million, which all included merger integration and purchase accounting expenses *Price increases more than offset the impacts of higher input costs; however, lower volumes primarily from customer de-stocking and manufacturing challenges drove margin pressure *$25 million incremental synergy realization still expected in 2023, with procurement and supply chain activities building upon 2022 SG&A actions; easing input costs also expected to support sequential margin improvements

Promising future for the Tasman mill and Nature’s Flame

The Tasman mill has over the last period commenced production of paper for supplies into the Asian packaging markets in the form of Pulp on Reel. This is part of the ongoing strategic development process to transition the Tasman mill in New Zealand out of standard newprint production. As part of the same strategic review, Norske Skog has received significant inbound interest for Nature’s Flame pellets facility located close to the Tasman mill; therefore, Norske Skog has decided to launch a process to asses the best long term ownership structure for this operation. “The Tasman mill management and the larger Australasian organisation have shown entrepreneurial spirit in quickly developing an alternative business case for the mill, making good commercial use of existing assets and infrastructure on the site. I am certain that the continuing work will result in further ways to maximise the potential in the Tasman mill’s excellent fiber access and fiber processing competencies” says Norske Skog Chief Executive Officer, Sven Ombudstvedt.

Label Life by UPM Raflatac sets new industry standards with DEKRA verified LCA calculations

UPM Raflatac, a global supplier of innovative and more sustainable self-adhesive paper and film products, has received a new certificate of validity from leading international assurance service provider, DEKRA, for its Label Life service. This new certificate confers validity to the LCA calculation engine and the whole process of generating LCAs at scale. As a result, customers wanting to communicate their potential impact in the labeling value chain can now do so with increased assurance. With the EU in the process of developing a ‘digital product passport’ (DPP) that will be issued for all products on the market, UPM Raflatac decided to be a step ahead of the legislative requirements. The company has designed its product passport prototype (PPP), an environmental declaration, based on existing standards and norms. Generated by the newly validated Label Life service, the product passport prototype enables UPM Raflatac’s customers and brands to communicate their labeling’s potential environmental impact. It includes a wide range of metrics that are broken down into life cycle stages: cradle-to-gate, transport-to-customer, printing, and end of life.
Back To Top
×Close search
Search