Interfor Reports Q4’19 Results

EBITDA1 of $18 million on Sales of $457 millionNet Debt to Invested Capital1 of 21%; Liquidity of $363 million

VANCOUVER, British Columbia, Feb. 06, 2020 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a net loss of $103.8 million, or $1.54 per share, in 2019, compared to net earnings of $111.1 million, or $1.59 per share in 2018.  Adjusted EBITDA was $63.4 million on sales of $1.9 billion.

Interfor recorded a net loss in Q4’19 of $41.7 million, or $0.62 per share, compared to $35.6 million, or $0.53 per share in Q3’19 and $13.5 million, or $0.20 per share in Q4’18.  Adjusted net loss in Q4’19 was $17.4 million compared to $11.8 million in Q3’19 and $20.2 million in Q4’18.

Adjusted EBITDA was $17.6 million on sales of $456.8 million in Q4’19 versus $16.8 million on sales of $486.5 million in Q3’19.

Included in the Company’s results for Q4’19 are $22.7 million (after-tax) for capital asset write-downs and restructuring costs, or $30.4 million on a pre-tax basis.  This includes $13.1 million of non-cash impairments for goodwill related to the reconfiguration of the Company’s B.C. Coastal business and $16.1 million of non-cash asset impairments on assets in the U.S. Northwest business to reflect their fair value, as well as cash costs of $1.2 million for discontinued operations.

Notable items in the quarter included:

• Mixed Lumber Price Movements

• Movements in key benchmark prices were mixed compared to Q3’19 as the Western SPF Composite and KD H-F Stud 2x4 9’ benchmarks rose by US$16 to US$354 per mfbm and US$10 to US$347 per mfbm, respectively while the SYP Composite declined by US$15 to US$340 per mfbm.
• Interfor’s average lumber selling price fell $17 to $566 per mfbm, on 681 million board feet of lumber sales, partially due to a change in species mix and decline in specialty sales as a result of the closure of the Hammond sawmill.

• Production Balanced with Shipments

• Total lumber production was 668 million board feet, down 17 million board feet from Q3’19.  Production in the B.C. region declined to 187 million board feet from 205 million board feet in the preceding quarter due to the previously announced closure of the Hammond sawmill.  The U.S. South and U.S. Northwest regions accounted for 342 million board feet compared to 348 million board feet and 139 million board feet compared to 131 million board feet in Q3’19, respectively.
• Total lumber shipments were 681 million board feet, including Interfor produced volume of 671 million board feet and agency and wholesale volumes of 10 million board feet, or 11 million board feet lower than Q3’19.
• Lumber inventory levels ended at 4 million board feet lower than in Q3’19.

• Continued Strong Financial Position

• Net debt ended the quarter at $224.9 million, or 21.3% of invested capital, resulting in available liquidity of $363.1 million.
• Interfor generated $16.3 million of cash flow from operations before changes in working capital, or $0.24 per share.  Total cash generated from operations was $24.6 million, resulting primarily from lower trade receivable balances.
• Capital spending was $37.0 million in Q4’19, including $26.6 million on high-return discretionary projects primarily in the U.S. South.

• Softwood Lumber Duties

• Interfor expensed $11.2 million of duties in the quarter, representing the full amount of countervailing (“CV”) and anti-dumping (“AD”) duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 20.23%.
• On February 3, 2020, the U.S. Department of Commerce (the “DoC”) issued preliminary revised combined rates of 8.37% for 2017 and 8.21% for 2018.  These rates are the result of the DoC’s administrative review and are subject to change until its final rate determinations which are expected in August 2020.  At such time, the final rates will be applied to new lumber shipments.  No adjustments have been recorded in the financial statements as of December 31, 2019 to reflect the preliminary revised duty rates.
• Cumulative duties of US$94.2 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$3.3 million in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense.

1 Refer to Adjusted EBITDA and Net debt to invested capital in the Non-GAAP Measures section

Reconfiguration of B.C. Coastal Business

On September 3, 2019, Interfor announced a plan to reconfigure its B.C. Coastal business, including the permanent closure of its Hammond sawmill, located in Maple Ridge, B.C., and the reorganization of its forestry and woodlands operations. 

Hammond ceased lumber production in early October 2019, sold most of the related log and lumber inventories in Q3’19 and Q4’19 and is expected to sell its remaining lumber inventories by the end of Q1’20.  The Hammond site is no longer in use.

Strategic Capital Plan Update

Interfor’s previously announced Phase I strategic capital projects at the Meldrim, Georgia and Monticello, Arkansas sawmills were substantially completed at the end of Q2’19 and continue through the ramp-up phase. 

The Phase II projects at the Thomaston and Eatonton sawmills in Georgia and the Georgetown sawmill in South Carolina, with a budget of US$240 million, are on track for completion in various stages from 2020 to 2022.  As of December 31, 2019, US$56.9 million has been capitalized and the projects remain on budget.

Acquisition of B.C. Interior Cutting Rights from Canfor

On June 3, 2019, Interfor entered into a purchase agreement with Canadian Forest Products Ltd. (“Canfor”) to acquire two replaceable timber licences with annual cutting rights of approximately 349,000 cubic metres, an interest in a non-replaceable forest licence and other related forestry assets in the Adams Lake area of the B.C. Interior.

The transaction remains subject to various consents, including that by the Government of B.C. and is currently targeted to close in Q1’20 as consultation with stakeholders continues.

Financial and Operating Highlights1 

			For the 3 months ended
			Dec. 31		Dec. 31		Sept. 30			For the year ended Dec.31
		Unit	2019		2018		2019			2019		2018		2017
					(restated)2							(restated)2		(restated)2
	Financial Highlights3
	Total sales	$MM	456.8		468.5		486.5			1,875.8		2,186.6		1,990.1
	Lumber	$MM	385.2		387.7		403.5			1,576.1		1,841.0		1,679.4
	Logs, residual products and other	$MM	71.6		80.8		83.0			299.7		345.6		310.7
	Operating earnings (loss)	$MM	(49.0)		(16.9)		(44.8)			(128.8)		157.9		151.2
	Net earnings (loss)	$MM	(41.7)		(13.5)		(35.6)			(103.8)		111.1		97.1
	Net earnings (loss) per share, basic	$/share	(0.62)		(0.20)		(0.53)			(1.54)		1.59		1.39
	Adjusted net earnings (loss)4	$MM	(17.4)		(20.2)		(11.8)			(58.1)		113.5		116.5
	Adjusted net earnings (loss) per share, basic4	$/share	(0.26)		(0.29)		(0.17)			(0.86)		1.63		1.66
	Operating cash flow per share (before working  capital changes)4	$/share	0.24		0.14		0.03			0.68		4.12		4.03
	Adjusted EBITDA4	$MM	17.6		8.9		16.8			63.4		291.6		296.8
	Adjusted EBITDA margin4	%	3.9%		1.9%		3.5%			3.4%		13.3%		14.9%
	Total assets	$MM	1,341.9		1,565.3		1,421.0			1,341.9		1,565.3		1,389.6
	Total debt	$MM	259.8		272.8		264.9			259.8		272.8		250.9
	Net debt4	$MM	224.9		63.8		212.7			224.9		63.8		119.3
	Net debt to invested capital4	%	21.3%		6.2%		19.4%			21.3%		6.2%		12.3%
	Annualized return on invested capital4	%	6.6%		3.6%		6.1%			6.3%		29.1%		29.0%
	Operating Highlights
	Lumber production	million fbm	668		607		685			2,646		2,635		2,595
	Total lumber sales	million fbm	681		647		692			2,668		2,680		2,677
	Lumber sales - Interfor produced	million fbm	671		639		681			2,626		2,638		2,594
	Lumber sales - wholesale and commission	million fbm	10		8		11			42		42		83
	Lumber - average selling price5	$/thousand fbm	566		599		583			591		687		627
	Average USD/CAD exchange rate6	1 USD in CAD	1.3200		1.3204		1.3204			1.3269		1.2957		1.2986
	Closing USD/CAD exchange rate6	1 USD in CAD	1.2988		1.3642		1.3243			1.2988		1.3642		1.2545

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, 2019 was $224.9 million, or 21.3% of invested capital, representing an increase of $161.0 million from the level of net debt at December 31, 2018. 

Net debt was positively impacted by a strengthened Canadian Dollar against the U.S. Dollar as all debt held was denominated in U.S. Dollars; this was partially offset by the Company’s U.S. Dollar cash balances.

		For the three months ended							For the year ended
		Dec. 31,		Dec. 31,		Sept. 30,			Dec. 31,		Dec. 31,
	Thousands of Dollars	2019		2018		2019			2019		2018
	Net debt
	Net debt, period opening	$212,674		$3,800		$198,209			$63,825		$119,300
	Net drawing (repayment) on credit facilities	(1)		(1)		-			754		110
	Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD	(5,099)		13,941		3,120			(13,834)		21,830
	Decrease (increase) in cash and cash equivalents	16,994		7,286		11,747			127,659		(23,968)
	Decrease (increase) in marketable securities	-		49,871		-			41,766		(41,140)
	Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening (weakening) CAD	292		(11,072)		(402)			4,690		(12,307)
	Net debt, period ending	$224,860		$63,825		$212,674			$224,860		$63,825

On March 28, 2019, the Company completed a modernization of its credit facilities.  The new facility replaced the U.S. Operating Line, Canadian Operating Line, and Revolving Term Line with one consolidated facility.  The new facility increased credit availability to $350 million and matures in March 2024. 

As at December 31, 2019, the Company had net working capital of $187.9 million and available liquidity of $363.1 million, including cash and borrowing capacity on its credit facility. 

These resources, in addition to cash generated from operations, will be used to support working capital requirements, debt servicing commitments and capital expenditures.  We believe that Interfor will have sufficient liquidity to fund operating and capital requirements for the foreseeable future.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of December 31, 2019:

		Revolving		Senior
		Term		Secured
	Thousands of Canadian Dollars		Line		Notes		Total
	Available line of credit		$350,000		$259,760		$609,760
	Maximum borrowing available		$350,000		$259,760		$609,760
	Less:
	Drawings		-		259,760		259,760
	Outstanding letters of credit included in line utilization		21,752		-		21,752
	Unused portion of facility		$328,248		$          -		328,248
	Add:
	Cash and cash equivalents						34,900
	Available liquidity at December 31, 2019						$363,148

As of December 31, 2019, the Company had commitments for capital expenditures totaling $93.5 million for both maintenance and discretionary capital projects and $60 million in respect of its purchase agreement with Canfor to acquire two replaceable timber licences and a non-replaceable forest licence and other related forestry assets.

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, Net debt to invested capital and Operating cash flow per share (before working capital changes) 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 3 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	2019		2018		2019			2019		2018		2017
				(restated)¹							(restated)¹		(restated)¹
	Adjusted Net Earnings (Loss)
	Net earnings (loss)	$(41,676)		$(13,512)		$(35,648)			$(103,785)		$111,058		$97,119
	Add:
	Capital asset and goodwill write-downs and  restructuring costs	30,416		4,551		31,814			63,982		15,304		9,203
	Other foreign exchange loss (gain)	510		(3,330)		(216)			275		(3,474)		2,035
	Long term incentive compensation expense (recovery)	1,265		(9,180)		1,049			3,446		(7,829)		12,977
	Other (income) expense	298		(1,254)		100			(5,925)		(1,188)		1,987
	Post closure wind-down costs and losses (recoveries)	-		-		-			-		4		(21)
	Income tax effect of above adjustments	(8,241)		2,530		(8,867)			(16,117)		(396)		(6,848)
	Adjusted net earnings (loss)	$(17,428)		$(20,195)		$(11,768)			$(58,124)		$113,479		$116,452
	Weighted average number of shares - basic ('000)	67,257		68,884		67,253			67,277		69,713		70,030
	Adjusted net earnings (loss) per share	$(0.26)		$(0.29)		$(0.17)			$(0.86)		$1.63		$1.66
	Adjusted EBITDA
	Net earnings (loss)	$(41,676)		$(13,512)		$(35,648)			$(103,785)		$111,058		$97,119
	Add:
	Depreciation of plant and equipment	20,711		19,241		20,595			80,438		80,065		77,417
	Depletion and amortization of timber, roads and other	14,214		11,229		8,142			44,294		46,148		45,957
	Capital asset and goodwill write-downs and restructuring costs	30,416		4,551		31,814			63,982		15,304		9,203
	Finance costs	3,740		2,758		3,784			15,024		12,452		15,978
	Other foreign exchange loss (gain)	510		(3,330)		(216)			275		(3,474)		2,035
	Income tax expense (recovery)	(11,851)		(1,553)		(12,804)			(34,359)		39,092		34,115
	EBITDA	16,064		19,384		15,667			65,869		300,645		281,824
	Add:
	Long term incentive compensation expense (recovery)	1,265		(9,180)		1,049			3,446		(7,829)		12,977
	Other (income) expense	298		(1,254)		100			(5,925)		(1,188)		1,987
	Post closure wind-down costs and losses (recoveries)	-		-		-			-		4		(21)
	Adjusted EBITDA	$17,627		$8,950		$16,816			$63,390		$291,632		$296,767
	Sales	$456,819		$468,544		$486,494			$1,875,821		$2,186,567		$1,990,106
	Adjusted EBITDA margin	3.9%		1.9%		3.5%			3.4%		13.3%		14.9%
	Net debt to invested capital
	Net debt
	Total debt	$259,760		$272,840		$264,860			$259,760		$272,840		$250,900
	Cash and cash equivalents	(34,900)		(166,152)		(52,186)			(34,900)		(166,152)		(131,600)
	Marketable securities	-		(42,863)		-			-		(42,863)		-
	Total net debt	$224,860		$63,825		$212,674			$224,860		$63,825		$119,300
	Invested capital
	Net debt	$224,860		$63,825		$212,674			$224,860		$63,825		$119,300
	Shareholders' equity	830,982		968,766		880,854			830,982		968,766		849,552
	Total invested capital	$1,055,842		$1,032,591		$1,093,528			$1,055,842		$1,032,591		$968,852
	Net debt to invested capital2	21.3%		6.2%		19.4%			21.3%		6.2%		12.3%
	Operating cash flow per share (before working capital changes)
	Cash provided by operating activities	$24,642		$21,096		$29,658			$28,252		$265,612		$266,748
	Cash used in (generated from) operating working capital	(8,334)		(11,253)		(27,336)			17,322		21,457		15,621
	Operating cash flow (before working capital changes)	$16,308		$9,843		$2,322			$45,574		$287,069		$282,369
	Weighted average number of shares - basic ('000)	67,257		68,884		67,253			67,277		69,713		70,030
	Operating cash flow per share (before working capital changes)	$0.24		$0.14		$0.03			$0.68		$4.12		$4.03
	Annualized return on invested capital
	Adjusted EBITDA	$17,627		$8,950		$16,816			$63,390		$291,632		$296,767
	Invested capital, beginning of period	$1,093,528		$984,189		$1,109,618			$1,032,591		$968,852		$1,076,218
	Invested capital, end of period	1,055,842		1,032,591		1,093,528			1,055,842		1,032,591		968,852
	Average invested capital	$1,074,685		$1,008,390		$1,101,573			$1,044,217		$1,000,722		$1,022,535
	Adjusted EBITDA divided by average invested capital	1.6%		0.9%		1.5%			6.1%		29.1%		29.0%
	Annualization factor	4.0		4.0		4.0			1.0		1.0		1.0
	Annualized return on invested capital	6.6%		3.6%		6.1%			6.1%		29.1%		29.0%

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, 2019 and 2018 (unaudited)
		(thousands of Canadian Dollars except earnings per share)		Three Months		Three Months		Year		Year
				Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
						(restated)¹				(restated)¹
		Sales		$456,819		$468,544		$1,875,821		$2,186,567
		Costs and expenses:
			Production	418,954		438,036		1,728,394		1,789,590
			Selling and administration	8,992		11,897		38,748		52,012
			Long term incentive compensation expense (recovery)	1,265		(9,180)		3,446		(7,829)
			U.S. countervailing and anti-dumping duty deposits	11,246		9,661		45,289		53,337
			Depreciation of plant and equipment	20,711		19,241		80,438		80,065
			Depletion and amortization of timber, roads and other	14,214		11,229		44,294		46,148
				475,382		480,884		1,940,609		2,013,323
		Operating earnings (loss) before write-downs and restructuring costs		(18,563)		(12,340)		(64,788)		173,244
		Capital asset and goodwill write-downs and restructuring costs		(30,416)		(4,551)		(63,982)		(15,304)
		Operating earnings (loss)		(48,979)		(16,891)		(128,770)		157,940
		Finance costs		(3,740)		(2,758)		(15,024)		(12,452)
		Other foreign exchange gain (loss)		(510)		3,330		(275)		3,474
		Other income (expense)		(298)		1,254		5,925		1,188
				(4,548)		1,826		(9,374)		(7,790)
		Earnings (loss) before income taxes		(53,527)		(15,065)		(138,144)		150,150
		Income tax expense (recovery):
			Current	(783)		(45)		26		2,955
			Deferred	(11,068)		(1,508)		(34,385)		36,137
				(11,851)		(1,553)		(34,359)		39,092
		Net earnings (loss)		$(41,676)		$(13,512)		$(103,785)		$111,058
		Net earnings (loss) per share, basic and diluted		$(0.62)		$(0.19)		$(1.54)		$1.59

	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	For the three months and year ended December 31, 2019 and 2018 (unaudited)
	(thousands of Canadian Dollars)		Three Months		Three Months		Year		Year
			Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
					(restated)¹				(restated)¹
	Net earnings (loss)		$(41,676)		$(13,512)		$(103,785)		$111,058
	Other comprehensive income (loss):
	Items that will not be recycled to Net earnings (loss):
		Defined benefit plan actuarial gain (loss), net of tax	1,621		(2,338)		603		508
	Items that are or may be recycled to Net earnings (loss):
		Foreign currency translation differences for foreign operations, net of tax	(10,053)		28,990		(27,634)		43,660
	Total other comprehensive income (loss), net of tax		(8,432)		26,652		(27,031)		44,168
	Comprehensive income (loss)		$(50,108)		$13,140		$(130,816)		$155,226

Notes:

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

	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the three months and year ended December 31, 2019 and 2018 (unaudited)
	(thousands of Canadian Dollars)			Three Months		Three Months		Year		Year
				Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
						(restated)¹				(restated)¹
	Cash provided by (used in):
	Operating activities:
		Net earnings (loss)		$(41,676)		$(13,512)		$(103,785)		$111,058
		Items not involving cash:
			Depreciation of plant and equipment	20,711		19,241		80,438		80,065
			Depletion and amortization of timber, roads and other	14,214		11,229		44,294		46,148
			Income tax expense (recovery)	(11,851)		(1,553)		(34,359)		39,092
			Finance costs	3,740		2,758		15,024		12,452
			Other assets	1,371		(2,824)		1,894		(3,000)
			Reforestation liability	1,291		763		(1,286)		79
			Provisions and other liabilities	(1,586)		(4,980)		3,620		(8,972)
			Stock options	151		216		692		774
			Write-down of plant, equipment, intangibles, goodwill and other	29,100		3,238		45,494		13,925
			Unrealized foreign exchange loss (gain)	544		(3,479)		554		(3,364)
			Gain on lease modifications	(1,140)		-		(1,140)		-
			Other expense (income)	1,439		(1,254)		(5,866)		(1,188)
				16,308		9,843		45,574		287,069
		Cash generated from (used in) operating working capital:
			Trade accounts receivable and other	26,706		30,618		1,517		27,414
			Inventories	(5,450)		(2,846)		22,632		(33,821)
			Prepayments	2,639		225		(4,443)		(3,035)
			Trade accounts payable and provisions	(15,851)		(15,628)		(36,446)		(7,623)
			Income taxes paid	290		(1,116)		(582)		(4,392)
				24,642		21,096		28,252		265,612
	Investing activities:
		Additions to property, plant and equipment		(31,864)		(50,307)		(158,645)		(106,440)
		Additions to roads and bridges		(5,175)		(8,524)		(22,447)		(32,165)
		Additions to timber licences and other intangible assets		-		(68)		(77)		(158)
		Proceeds on disposal of property, plant and equipment, timber and other		431		1,846		8,880		2,355
		Net proceeds from (additions to) marketable securities, deposits and other assets		1,208		58,548		48,338		(48,385)
				(35,400)		1,495		(123,951)		(184,793)
	Financing activities:
		Issuance of share capital, net of expenses		85		-		165		143
		Share repurchases		-		(24,979)		(7,825)		(36,929)
		Interest payments		(3,345)		(2,271)		(12,193)		(10,151)
		Lease payments		(2,946)		(2,608)		(11,638)		(9,936)
		Debt refinancing costs		(29)		(18)		(1,223)		(88)
		Change in operating line components of long term debt		(1)		(1)		4		(2)
		Additions to long term debt		-		-		197,925		155,909
		Repayments of long term debt		-		-		(197,175)		(155,797)
				(6,236)		(29,877)		(31,960)		(56,851)
	Foreign exchange gain (loss) on cash and cash equivalents held in a foreign currency			(292)		7,885		(3,593)		10,584
	Increase (decrease) in cash			(17,286)		599		(131,252)		34,552
	Cash and cash equivalents, beginning of period			52,186		165,553		166,152		131,600
	Cash and cash equivalents, end of period			$34,900		$166,152		$34,900		$166,152

Notes:

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

	CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	December 31, 2019, 2018 and January 1, 2018 (unaudited)
	(thousands of Canadian Dollars)
			Dec. 31, 2019		Dec. 31, 2018		Jan. 1, 2018
					(restated)¹		(restated)¹
	Assets
	Current assets:
		Cash and cash equivalents	$34,900		$166,152		$131,600
		Marketable securities	-		42,863		-
		Trade accounts receivable and other	86,608		90,384		112,470
		Income taxes receivable	1,995		3,008		1,289
		Inventories	181,577		209,178		165,156
		Prepayments	20,449		16,833		12,186
			325,529		528,418		422,701
	Employee future benefits		673		303		502
	Deposits and other assets		9,296		16,842		6,404
	Right of use assets		32,780		37,778		38,600
	Property, plant and equipment		739,515		723,773		669,165
	Roads and bridges		24,353		29,829		24,092
	Timber licences		60,596		64,153		66,589
	Other intangible assets		3,480		5,288		14,170
	Goodwill		138,734		158,799		147,081
	Deferred income taxes		6,961		133		253
			$1,341,917		$1,565,316		$1,389,557
	Liabilities and Shareholders’ Equity
	Current liabilities:
		Trade accounts payable and provisions	$114,358		$154,869		$152,355
		Reforestation liability	13,021		13,947		12,873
		Lease liabilities	10,105		10,158		8,019
		Income taxes payable	163		356		224
			137,647		179,330		173,471
	Reforestation liability		27,401		28,235		27,535
	Lease liabilities		27,718		33,954		36,165
	Long term debt		259,760		272,840		250,900
	Employee future benefits		11,843		8,687		8,249
	Provisions and other liabilities		18,957		16,421		25,808
	Deferred income taxes		27,609		57,083		17,877
	Equity:
		Share capital	533,685		537,534		555,388
		Contributed surplus	4,471		3,851		8,582
		Translation reserve	56,759		84,393		40,733
		Retained earnings	236,067		342,988		244,849
			830,982		968,766		849,552
			$1,341,917		$1,565,316		$1,389,557

Notes:

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

Approved on behalf of the Board:
	“L. Sauder”	“Thomas 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.  Generally, statements containing forward-looking information can be identified by the use of words such as: believe, expect, intend, forecast, plan, target, budget, outlook, opportunity, risk, strategy or variations or comparable language, or statements that certain actions, events or results may, could, would, should, might, or will occur or not occur.  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 release include assumptions regarding 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; the effects of 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 dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia; environmental impacts of the Company’s operations; labour disruptions; and the efficacy of information systems security.  Unless otherwise indicated, the forward-looking information in this release is based on the Company’s expectations at the date of this release.  Interfor undertakes no obligation to update such forward-looking information, 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 one of the most diverse lines of lumber products to customers around the world.  For more information about Interfor, visit our website at www.interfor.com.

The Company’s 2019 audited consolidated financial statements and Management’s Discussion and Analysis are available at www.sedar.com and www.interfor.com. 

There will be an analyst conference call on Friday, February 7, 2020 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 2019 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 7, 2020.  The number to call is 1-855-859-2056, Passcode 1874063.

For further information:Martin L. Juravsky, Senior Vice President and Chief Financial Officer(604) 689-6873

Source: Interfor Corporation

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