Record EBITDA(1) of $200 million in 2016; $51 million in Q4'16
Strong Free Cash Flow/Debt Reduction of $163 million in 2016; $57 million in Q4'16
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 9, 2017) - 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:
1 Refer to Non-GAAP Measures section
Summary of Quarterly Results(1) | ||||||||||||||||
2016 | 2015 | |||||||||||||||
Unit | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
Financial Performance (Unaudited) | ||||||||||||||||
Total sales | $MM | 442.3 | 457.6 | 458.8 | 433.9 | 411.4 | 430.8 | 429.7 | 415.4 | |||||||
Lumber | $MM | 363.5 | 374.8 | 371.1 | 348.9 | 325.0 | 343.3 | 352.2 | 340.7 | |||||||
Logs, residual products and other | $MM | 78.8 | 82.8 | 87.7 | 85.0 | 86.4 | 87.5 | 77.5 | 74.7 | |||||||
Operating earnings (loss) | $MM | 22.3 | 20.1 | 30.0 | 3.5 | (6.3 | ) | (11.6 | ) | (25.8 | ) | 7.8 | ||||
Net earnings (loss) | $MM | 26.6 | 15.1 | 23.2 | 0.8 | (3.5 | ) | (6.1 | ) | (20.6 | ) | (0.2 | ) | |||
Net earnings (loss) per share, basic and diluted | $/share | 0.38 | 0.22 | 0.33 | 0.01 | (0.05 | ) | (0.09 | ) | (0.29 | ) | (0.00 | ) | |||
Adjusted net earnings (loss)(2) | $MM | 17.7 | 20.7 | 17.5 | 2.7 | 4.5 | (16.6 | ) | (10.3 | ) | 3.5 | |||||
Adjusted net earnings (loss) per share, basic and diluted (2) | $/share | 0.25 | 0.30 | 0.25 | 0.04 | 0.06 | (0.24 | ) | (0.15 | ) | 0.05 | |||||
Adjusted EBITDA(2) | $MM | 51.3 | 58.1 | 56.9 | 33.4 | 35.8 | 11.5 | 12.7 | 31.8 | |||||||
Shares outstanding - end of period | million | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | |||||||
Shares outstanding - weighted average | million | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | 67.8 | |||||||
Operating Performance | ||||||||||||||||
Lumber production | million fbm | 607 | 628 | 637 | 618 | 568 | 618 | 672 | 639 | |||||||
Total lumber sales | million fbm | 619 | 647 | 658 | 637 | 615 | 686 | 719 | 632 | |||||||
Lumber sales - Interfor produced | million fbm | 598 | 627 | 634 | 609 | 586 | 663 | 688 | 607 | |||||||
Lumber sales - wholesale and commission | million fbm | 21 | 20 | 24 | 28 | 29 | 23 | 31 | 25 | |||||||
Lumber - average selling price (3) | $/thousand fbm | 588 | 580 | 564 | 548 | 529 | 500 | 490 | 539 | |||||||
Average USD/CAD exchange rate (4) | 1 USD in CAD | 1.3341 | 1.3050 | 1.2886 | 1.3732 | 1.3354 | 1.3089 | 1.2297 | 1.2412 | |||||||
Closing USD/CAD exchange rate (4) | 1 USD in CAD | 1.3427 | 1.3117 | 1.3009 | 1.2971 | 1.3840 | 1.3394 | 1.2474 | 1.2683 |
Notes: | |
(1) Figures in this table may not add due to rounding. | |
(2) 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. | |
(3) Gross sales before export taxes. | |
(4) Based on Bank of Canada foreign exchange rates. |
Liquidity
Balance Sheet
Interfor strengthened its financial position throughout 2016, with strong cash flow generated from operations and proceeds received from the monetization of the Tacoma sawmill property used to repay debt and fund capital projects. Net debt at December 31, 2016 was $289.6 million, or 26.9% of invested capital, representing a decrease of $162.8 million from the level of net debt at December 31, 2015.
A strengthening of the Canadian Dollar against the U.S. Dollar by 3.0% contributed $16.1 million to the net debt reduction in 2016 over 2015 as all debt held was denominated in U.S. Dollars.
For the 3 months ended December 31, | For the year ended December 31, | ||||||||||||
Thousands of dollars | 2016 | 2015 | 2016 | 2015 | |||||||||
Net debt | |||||||||||||
Net debt, period opening, CAD | $ | 346,929 | $ | 461,474 | $ | 452,303 | $ | 202,553 | |||||
Net drawing (repayment) on credit facilities, CAD | (66,178 | ) | (19,207 | ) | (143,882 | ) | 182,949 | ||||||
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD | 9,678 | 14,592 | (16,056 | ) | 65,391 | ||||||||
Decrease (increase) in cash and equivalents, CAD | (878 | ) | (4,556 | ) | (2,814 | ) | 1,410 | ||||||
Net debt, period ending, CAD | $ | 289,551 | $ | 452,303 | $ | 289,551 | $ | 452,303 | |||||
Net debt components by currency | |||||||||||||
U.S. Dollar debt, period opening, USD | $ | 274,709 | $ | 345,957 | $ | 338,699 | $ | 190,000 | |||||
Net drawing (repayment) on credit facilities, USD | (44,709 | ) | (7,258 | ) | (108,699 | ) | 148,699 | ||||||
U.S. Dollar debt, period ending, USD | 230,000 | 338,699 | 230,000 | 338,699 | |||||||||
Spot rate, period end | 1.3427 | 1.3840 | |||||||||||
U.S. Dollar debt expressed in CAD | 308,821 | 468,759 | |||||||||||
Canadian Dollar debt, including bank indebtedness, CAD | - | - | |||||||||||
Canadian Dollar operating line, CAD | - | - | |||||||||||
Total debt, CAD | 308,821 | 468,759 | |||||||||||
Cash and cash equivalents, CAD | (19,270 | ) | (16,456 | ) | |||||||||
Net debt, period ending, CAD | $ | 289,551 | $ | 452,303 |
Capital Resources
The following table summarizes Interfor's credit facilities and availability as of December 31, 2016:
Thousands of Canadian dollars |
Operating Line |
Revolving Term Line | Senior Secured Notes | U.S. Operating Line | Total | ||||||
Available line of credit | $ | 65,000 | $ | 200,000 | $ | 268,540 | $ | 67,135 | $ | 600,675 | |
Maximum borrowing available | $ | 65,000 | $ | 200,000 | $ | 268,540 | $ | 65,627 | $ | 599,167 | |
Less: | |||||||||||
Drawings | - | 40,281 | 268,540 | - | 308,821 | ||||||
Outstanding letters of credit included in line utilization | 10,026 | - | - | 3,296 | 13,322 | ||||||
Unused portion of facility | $ | 54,974 | $ | 159,719 | $ | - | $ | 62,331 | $ | 277,024 | |
Add cash and cash equivalents | 19,270 | ||||||||||
Available liquidity at Dec. 31, 2016 | $ | 296,294 |
As of December 31, 2016, the Company had commitments for capital expenditures totaling $7.9 million for both maintenance and discretionary capital projects.
Interfor continues to maintain its disciplined focus on monitoring discretionary capital expenditures, optimizing inventory levels and matching production with offshore and domestic demand.
As at December 31, 2016, the Company had net working capital of $136.1 million and available liquidity of $296.3 million, including cash and borrowing capacity on operating and term line facilities. 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.
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, Pre-tax return on total assets and Net debt to invested capital, 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 prepared (unaudited for interim periods) in accordance with IFRS:
For the 3 months ended | ||||||||||||||||||||
Dec. 31 | Dec. 31 | Sept. 30, | For the year ended Dec. 31 | |||||||||||||||||
Thousands of Canadian dollars except number of shares and per share amounts | 2016 | 2015 | 2016 | 2016 | 2015 | 2014 | ||||||||||||||
Adjusted Net Earnings (Loss)(1) | ||||||||||||||||||||
Net earnings (loss) | $ | 26,550 | $ | (3,507 | ) | $ | 15,093 | $ | 65,643 | $ | (30,386 | ) | $ | 40,690 | ||||||
Add: | ||||||||||||||||||||
Restructuring costs and capital asset write-downs | 2,281 | 2,866 | 1,492 | 7,280 | 12,829 | 24,129 | ||||||||||||||
Other foreign exchange loss (gain) | (1,072 | ) | (473 | ) | (792 | ) | (1,468 | ) | 1,651 | 2,651 | ||||||||||
Long term incentive compensation expense (recovery) | 199 | 9,335 | 8,321 | 4,551 | (5,431 | ) | 23,933 | |||||||||||||
Other income | (14,452 | ) | (863 | ) | (7 | ) | (14,094 | ) | (757 | ) | 37 | |||||||||
Beaver sawmill post-closure wind-down costs | 128 | 6 | 6 | 145 | 365 | 1,083 | ||||||||||||||
Tacoma sawmill post-acquisition losses and closure costs | (13 | ) | 698 | 94 | 764 | 11,009 | - | |||||||||||||
Income tax effect of above adjustments | 4,895 | (2,564 | ) | (1,408 | ) | 2,008 | (9,311 | ) | (10,951 | ) | ||||||||||
Recognition of previously unrecognized deferred tax assets | (769 | ) | (983 | ) | (2,134 | ) | (6,171 | ) | 1,136 | (20,902 | ) | |||||||||
Adjusted net earnings (loss) | $ | 17,747 | $ | 4,515 | $ | 20,665 | $ | 58,658 | $ | (18,895 | ) | $ | 60,670 | |||||||
Weighted average number of shares - basic and diluted ('000) | 70,030 | 70,030 | 70,030 | 70,030 | 69,488 | 66,005 | ||||||||||||||
Adjusted net earnings (loss) per share | $ | 0.25 | $ | 0.06 | $ | 0.30 | $ | 0.84 | $ | (0.27 | ) | $ | 0.92 | |||||||
Adjusted EBITDA | ||||||||||||||||||||
Net earnings (loss) | $ | 26,550 | $ | (3,507 | ) | $ | 15,093 | $ | 65,643 | $ | (30,386 | ) | $ | 40,690 | ||||||
Add: | ||||||||||||||||||||
Depreciation of plant and equipment | 18,534 | 18,482 | 18,624 | 76,092 | 71,492 | 55,167 | ||||||||||||||
Depletion and amortization of timber, roads and other | 7,833 | 10,734 | 9,441 | 34,895 | 37,478 | 28,912 | ||||||||||||||
Restructuring costs and capital asset write-downs | 2,281 | 2,866 | 1,492 | 7,280 | 12,829 | 24,129 | ||||||||||||||
Finance costs | 4,074 | 5,459 | 4,379 | 18,602 | 17,569 | 8,915 | ||||||||||||||
Other foreign exchange loss (gain) | (1,072 | ) | (473 | ) | (792 | ) | (1,468 | ) | 1,651 | 2,651 | ||||||||||
Income tax expense (recovery) | 7,236 | (6,943 | ) | 1,445 | 7,207 | (24,017 | ) | (16,230 | ) | |||||||||||
EBITDA | 65,436 | 26,618 | 49,682 | 208,251 | 86,616 | 144,234 | ||||||||||||||
Add: | ||||||||||||||||||||
Long term incentive compensation expense (recovery) | 199 | 9,335 | 8,321 | 4,551 | (5,431 | ) | 23,933 | |||||||||||||
Other income | (14,452 | ) | (863 | ) | (7 | ) | (14,094 | ) | (757 | ) | 37 | |||||||||
Beaver sawmill post-closure wind-down costs | 128 | 6 | 6 | 145 | 363 | 1,075 | ||||||||||||||
Tacoma sawmill post-acquisition losses and closure costs | (13 | ) | 698 | 94 | 764 | 10,928 | - | |||||||||||||
Adjusted EBITDA | $ | 51,298 | $ | 35,794 | $ | 58,096 | $ | 199,617 | $ | 91,719 | $ | 169,279 | ||||||||
Pre-tax return on total assets | ||||||||||||||||||||
Operating earnings (loss) before restructuring costs | $ | 24,617 | $ | (3,461 | ) | $ | 21,610 | $ | 83,170 | $ | (23,111 | ) | $ | 60,192 | ||||||
Total assets(2) | 1,326,792 | 1,383,751 | 1,337,569 | 1,345,722 | 1,229,160 | 946,325 | ||||||||||||||
Pre-tax return on total assets(3) | 7.4% | (1.0% | ) | 6.5% | 6.2% | (1.9% | ) | 6.4% | ||||||||||||
Net debt to invested capital | ||||||||||||||||||||
Net debt | ||||||||||||||||||||
Total debt | $ | 308,821 | $ | 468,759 | $ | 365,321 | $ | 308,821 | $ | 468,759 | $ | 220,419 | ||||||||
Cash and cash equivalents | (19,270 | ) | (16,456 | ) | (18,392 | ) | (19,270 | ) | (16,456 | ) | (17,866 | ) | ||||||||
Total net debt | $ | 289,551 | $ | 452,303 | $ | 346,929 | $ | 289,551 | $ | 452,303 | $ | 202,553 | ||||||||
Invested capital | ||||||||||||||||||||
Net debt | $ | 289,551 | $ | 452,303 | $ | 346,929 | $ | 289,551 | $ | 452,303 | $ | 202,553 | ||||||||
Shareholders' equity | 786,667 | 725,254 | 745,333 | 786,667 | 725,254 | 636,480 | ||||||||||||||
Total invested capital | $ | 1,076,218 | $ | 1,177,557 | $ | 1,092,262 | $ | 1,076,218 | $ | 1,177,557 | $ | 839,033 | ||||||||
Net debt to invested capital(4) | 26.9% | 38.4% | 31.8% | 26.9% | 38.4% | 24.1% |
Notes: | |
(1) | Certain historical periods have been recast to exclude the recognition of previously unrecognized deferred tax assets from Adjusted net earnings. |
(2) | Total assets at period beginning for three month periods; average of opening and closing total assets for twelve month periods. |
(3) | Annualized rate. |
(4) | Net debt to invested capital as of the period end. |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) |
For the three months and years ended December 31, 2016 and 2015 (unaudited) |
(thousands of Canadian dollars except earnings per share) | 3 Months | 3 Months | Year | Year | |||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Sales | $ | 442,308 | $ | 411,411 | $ | 1,792,712 | $ | 1,687,375 | |||||
Costs and expenses: | |||||||||||||
Production | 381,556 | 366,083 | 1,550,912 | 1,554,975 | |||||||||
Selling and administration | 9,569 | 10,236 | 43,092 | 46,756 | |||||||||
Long term incentive compensation expense (recovery) | 199 | 9,335 | 4,551 | (5,431 | ) | ||||||||
Export taxes | - | 2 | - | 5,216 | |||||||||
Depreciation of plant and equipment | 18,534 | 18,482 | 76,092 | 71,492 | |||||||||
Depletion and amortization of timber, roads and other | 7,833 | 10,734 | 34,895 | 37,478 | |||||||||
417,691 | 414,872 | 1,709,542 | 1,710,486 | ||||||||||
Operating earnings (loss) before restructuring costs | 24,617 | (3,461 | ) | 83,170 | (23,111 | ) | |||||||
Restructuring costs | (2,281 | ) | (2,866 | ) | (7,280 | ) | (12,829 | ) | |||||
Operating earnings (loss) | 22,236 | (6,327 | ) | 75,890 | (35,940 | ) | |||||||
Finance costs | (4,074 | ) | (5,459 | ) | (18,602 | ) | (17,569 | ) | |||||
Other foreign exchange gain (loss) | 1,072 | 473 | 1,468 | (1,651 | ) | ||||||||
Other income | 14,452 | 863 | 14,094 | 757 | |||||||||
11,450 | (4,123 | ) | (3,040 | ) | (18,463 | ) | |||||||
Earnings (loss) before income taxes | 33,786 | (10,450 | ) | 72,850 | (54,403 | ) | |||||||
Income tax expense (recovery) | |||||||||||||
Current | 104 | 304 | 853 | 614 | |||||||||
Deferred | 7,132 | (7,247 | ) | 6,354 | (24,631 | ) | |||||||
7,236 | (6,943 | ) | 7,207 | (24,017 | ) | ||||||||
Net earnings (loss) | $ | 26,550 | $ | (3,507 | ) | $ | 65,643 | $ | (30,386 | ) | |||
Net earnings (loss) per share, basic and diluted | $ | 0.38 | $ | (0.05 | ) | $ | 0.94 | $ | (0.44 | ) | |||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||
For the three months and years ended December 31, 2016 and 2015 (unaudited) | |||||||||||||
3 Months | 3 Months | Year | Year | ||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Net earnings (loss) | $ | 26,550 | $ | (3,507 | ) | $ | 65,643 | $ | (30,386 | ) | |||
Other comprehensive income (loss): | |||||||||||||
Items that will not be recycled to Net earnings (loss): | |||||||||||||
Defined benefit plan actuarial gains (losses), net of tax | 4,497 | (611 | ) | 1,509 | (629 | ) | |||||||
Items that are or may be recycled to Net earnings (loss): | |||||||||||||
Foreign currency translation differences for foreign operations (net of tax) | 8,359 | 10,451 | (7,851 | ) | 56,475 | ||||||||
Gain (loss) in fair value of interest rate swaps | (5 | ) | 347 | (51 | ) | (71 | ) | ||||||
Total items that are or may be recycled to Net earnings (loss) | 8,354 | 10,798 | (7,902 | ) | 56,404 | ||||||||
Total other comprehensive income (loss), net of tax | 12,851 | 10,187 | (6,393 | ) | 55,775 | ||||||||
Comprehensive income | $ | 39,401 | $ | 6,680 | $ | 59,250 | $ | 25,389 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
For the three months and years ended December 31, 2016 and 2015 (unaudited) |
(thousands of Canadian dollars) | 3 Months | 3 Months | Year | Year | ||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||
Cash provided by (used in): | ||||||||||||||
Operating activities: | ||||||||||||||
Net earnings (loss) | $ | 26,550 | $ | (3,507 | ) | $ | 65,643 | $ | (30,386 | ) | ||||
Items not involving cash: | ||||||||||||||
Depreciation of plant and equipment | 18,534 | 18,482 | 76,092 | 71,492 | ||||||||||
Depletion and amortization of timber, roads and other | 7,833 | 10,734 | 34,895 | 37,478 | ||||||||||
Income tax expense (recovery) | 7,236 | (6,943 | ) | 7,207 | (24,017 | ) | ||||||||
Finance costs | 4,074 | 5,459 | 18,602 | 17,569 | ||||||||||
Other assets | 89 | 112 | (217 | ) | 639 | |||||||||
Reforestation liability | (1,133 | ) | 1,472 | 559 | 1,612 | |||||||||
Other liabilities and provisions | (204 | ) | 4,388 | 789 | (8,252 | ) | ||||||||
Stock options | 104 | 34 | 334 | 189 | ||||||||||
Reversal of write-down of plant and equipment | - | - | - | (1,195 | ) | |||||||||
Write-down of plant and equipment | 1,154 | 2,672 | 2,172 | 2,812 | ||||||||||
Unrealized foreign exchange losses (gains) | 596 | 4 | 596 | (337 | ) | |||||||||
Other income | (14,453 | ) | (863 | ) | (14,095 | ) | (758 | ) | ||||||
50,380 | 32,044 | 192,577 | 66,846 | |||||||||||
Cash generated from (used in) operating working capital: | ||||||||||||||
Trade accounts receivable and other | 7,192 | 3,574 | (2,666 | ) | 8,748 | |||||||||
Inventories | (2,077 | ) | 3,969 | (2,338 | ) | 48,717 | ||||||||
Prepayments and other | 187 | 1,027 | 704 | 3,017 | ||||||||||
Trade accounts payable and provisions | (6,725 | ) | 5,865 | 11,702 | (24,986 | ) | ||||||||
Income taxes paid | 24 | (330 | ) | (707 | ) | (965 | ) | |||||||
48,981 | 46,149 | 199,272 | 101,377 | |||||||||||
Investing activities: | ||||||||||||||
Additions to property, plant and equipment | (13,173 | ) | (20,114 | ) | (50,393 | ) | (93,832 | ) | ||||||
Additions to logging roads | (5,910 | ) | (5,215 | ) | (24,631 | ) | (26,133 | ) | ||||||
Additions to timber and other intangible assets | (694 | ) | (123 | ) | (1,682 | ) | (1,500 | ) | ||||||
Acquisitions | - | - | - | (223,263 | ) | |||||||||
Proceeds on disposal of property, plant and equipment | 41,121 | 7,867 | 41,437 | 12,509 | ||||||||||
Proceeds on disposal of investments | - | - | 10,342 | - | ||||||||||
Investments and other assets | (424 | ) | (1,345 | ) | (11,324 | ) | (1,033 | ) | ||||||
20,920 | (18,930 | ) | (36,251 | ) | (333,252 | ) | ||||||||
Financing activities: | ||||||||||||||
Issuance of capital stock, net of share issue expenses | - | - | - | 63,196 | ||||||||||
Interest payments | (3,741 | ) | (4,871 | ) | (17,174 | ) | (16,186 | ) | ||||||
Debt refinancing costs | (103 | ) | (14 | ) | (1,112 | ) | (292 | ) | ||||||
Change in operating line components of long-term debt | (2,867 | ) | (19,208 | ) | (11,663 | ) | 10,057 | |||||||
Additions to long term debt | 28,974 | - | 56,974 | 362,582 | ||||||||||
Repayments of long term debt | (92,285 | ) | - | (189,193 | ) | (189,691 | ) | |||||||
(70,022 | ) | (24,093 | ) | (162,168 | ) | 229,666 | ||||||||
Foreign exchange gain on cash and cash equivalents held in a foreign currency | 999 |
1,430 |
1,961 |
799 |
||||||||||
Increase (decrease) in cash | 878 | 4,556 | 2,814 | (1,410 | ) | |||||||||
Cash and cash equivalents, beginning of period | 18,392 | 11,900 | 16,456 | 17,866 | ||||||||||
Cash and cash equivalents, end of period | $ | 19,270 | $ | 16,456 | $ | 19,270 | $ | 16,456 |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
December 31, 2016 and 2015 (unaudited) |
(thousands of Canadian dollars) | Dec. 31, | Dec. 31, | |||
2016 | 2015 | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 19,270 | $ | 16,456 | |
Trade accounts receivable and other | 95,059 | 95,218 | |||
Income taxes receivable | 222 | 459 | |||
Inventories | 154,535 | 155,740 | |||
Prepayments and other | 14,016 | 15,512 | |||
Other investments and assets | 2,911 | - | |||
Assets held for sale | - | 27,836 | |||
286,013 | 311,221 | ||||
Employee future benefits | 2,471 | 1,570 | |||
Other investments and assets | 2,341 | 3,191 | |||
Property, plant and equipment | 730,981 | 777,590 | |||
Logging roads and bridges | 20,739 | 20,611 | |||
Timber licences | 69,273 | 72,429 | |||
Other intangible assets | 19,017 | 23,601 | |||
Goodwill | 156,502 | 160,914 | |||
Deferred income taxes | 14,311 | 18,669 | |||
$ | 1,301,648 | $ | 1,389,796 | ||
Liabilities and Shareholders' Equity | |||||
Current liabilities: | |||||
Trade accounts payable and provisions | $ | 138,029 | $ | 130,840 | |
Reforestation liability | 11,609 | 11,052 | |||
Income taxes payable | 317 | 398 | |||
149,955 | 142,290 | ||||
Reforestation liability | 25,931 | 25,074 | |||
Long term debt | 308,821 | 468,759 | |||
Employee future benefits | 8,136 | 8,391 | |||
Provisions and other liabilities | 21,290 | 20,028 | |||
Deferred income taxes | 848 | - | |||
Equity: | |||||
Share capital | 555,388 | 553,559 | |||
Contributed surplus | 7,999 | 7,665 | |||
Translation reserve | 69,574 | 77,425 | |||
Hedge reserve | 11 | 62 | |||
Retained earnings | 153,695 | 86,543 | |||
786,667 | 725,254 | ||||
$ | 1,301,648 | $ | 1,389,796 |
Approved on behalf of the Board: | |
"L. Sauder" | "D.W.G. Whitehead" |
Director | Director |
FORWARD-LOOKING STATEMENTS
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "believes", "will", "should", "expects", "annualized" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among other things: price volatility, competition, availability and cost of log supply, natural or man-made disasters, currency exchange sensitivity, regulatory changes, allowable annual cut reductions, Aboriginal title and rights claims, potential countervailing and anti-dumping duties, stumpage fee variables and changes, environmental impact and performance, labour disruptions, and other factors referenced herein and in Interfor's Annual Report available on www.sedar.com and www.interfor.com. The forward-looking information and statements contained in this release are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
ABOUT INTERFOR
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3 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 2016 audited consolidated financial statements and Management's Discussion and Analysis are available at www.sedar.com and www.interfor.com.
There will be a conference call on Friday, February 10, 2017 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 2016 financial results.
The dial-in number is 1-866-233-4795. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until March 12, 2017. The number to call is 1-888-203-1112, Passcode 4717817.
Interfor Corporation
John A. Horning
Executive Vice President and Chief Financial Officer
(604) 689-6829
Interfor Corporation
Marty Juravsky
Senior Vice President, Corporate Development and Strategy
(604) 689-6873