Interfor Reports Year-end and Q4’16 Results

INTERFOR CORPORATION (“Interfor” or “the Company”) (TSX: IFP) recorded net earnings in Q4’16 of $26.6 million, or $0.38 per share, compared to $15.1 million, or $0.22 per share in Q3’16 and a loss of $3.5 million, or $0.05 per share in Q4’15. Adjusted net earnings1 (which takes into account the effects of share-based compensation expense and non-recurring items) in Q4’16 were $17.7 million or $0.25 per share, compared to $20.7 million, or $0.30 per share in Q3’16 and $4.5 million, or $0.06 per share in Q4’15.

Adjusted EBITDA was $51.3 million on sales of $442.3 million in Q4’16 versus $58.1 million on sales of $457.6 million in Q3’16.

For the year, net earnings were $65.6 million, or $0.94 per share, compared to a loss of $30.4 million or $0.44 per share in 2015. Adjusted EBITDA was a record $199.6 million, eclipsing the previous record set in 2014.

Notable items in the quarter included:
* Strong Cash Flow and Proceeds from Tacoma Sale contributes to $57.4 million in Net Debt Reduction
– Interfor generated $49.0 million in cash from operations, after considering working capital changes in Q4’16.
– The sale of the former sawmill property in Tacoma, WA closed in Q4’16 with cash proceeds of US$31.5 million. The net proceeds are approximately US$20.4 million after taking account of transaction costs and the US$10.0 million due to the former owner that was paid in January, 2017.
– Capital spending was $19.8 million in Q4’16.
– The resulting free cash flow contributed to a reduction in net debt to $289.6 million, or 26.9% of invested capital. For the year, net debt was reduced by $162.8 million.
* Mixed Lumber Prices and Lower C$
– Key benchmark lumber prices were mixed in Q4’16. The Southern Pine Composite increased US$11 to US$393 per mfbm as stronger prices for 2×4 and 2×8 more than offset weaker prices for 2×6, 2×10 and 2×12. At the same time, the Western SPF Composite and KD H-F Stud 2×4 9’ benchmarks declined US$6 to US$305 per mfbm and US$18 to US$318 per mfbm respectively.
– The C$ weakened by 2.2% to US$0.750 quarter-over-quarter thereby offsetting, in part, the drop in SPF and H-F prices.
more detail at:  http://www.interfor.com/sites/default/files/docs/reports/Interfor-Reports-Year-End-And-Q4-16-Results.pdf

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