Interfor Corp. Declares Q1 2018 Results; Earnings Hit $33 Million

SEATTLE (Scrap Monster): The Vancouver, B.C.-based Interfor Corp. has announced the results of first quarter of 2018. The company’s earnings surged to $33 million or $0.47 per share in Q1 2018, when compared with the earnings of $19.7 million or $0.28 per share during the corresponding quarter a year before. The company recorded adjusted EBITDA of $81.1 million on sales of $527.6 million during the quarter. This is upon comparison with adjusted EBITDA of $89.5 million on sales of $532.8 million during the prior quarter.

The key benchmark prices improved over the previous quarter. The SYP Composite and the Western SPF Composite prices surged higher by $37 and $33 per mfbm. The company’s average lumber selling prices increased considerably from $38 during the prior quarter to record high of $688 per mfbm.

Interfor’s lumber production increased marginally over the previous quarter to total 666 million board feet. The production in the U.S. South region totaled 302 million board feet. The B.C. production totaled 218 million board feet, whereas the U.S. Northwest regions accounted for 146 million board feet of output. The total lumber shipments during Q1 2018 declined marginally to 648 million board feet, mainly on account of transportation issues due to severe weather conditions.

The company generated $75.5 million as cash from operations before changes in working capital. The quarterly capital spending totaled $18.1 million. Also, Interfor paid $12.9 million in countervailing and anti-dumping duties during the quarter. The company reported net debt of $127.1 million, equivalent to 12.4% of invested capital

Commenting on the future outlook, the company plans to complete the earlier announced expansion works at Meldrim and Monticello sawmills by Q1 next year. The capital investment plans for revamp of three of its U.S. South sawmills are expected to complete between 2019 and 2021. Interfor also plans to open a Greenfield sawmill facility in the U.S. Central region, the final decision of which will be announced by mid-2018.