EBITDA(1) of $69 million and Net Earnings of $28 million
Operating Cash Flow(1) of $1.00 per share
Net Debt to Invested Capital(1) of 0%
Greenfield Decision Postponed Indefinitely

VANCOUVER, British Columbia, Nov. 08, 2018 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded net earnings in Q3’18 of $28.1 million, or $0.40 per share, compared to $63.8 million, or $0.91 per share in Q2’18 and $16.8 million, or $0.24 per share in Q3’17.  Adjusted net earnings in Q3’18 were $28.2 million or $0.40 per share, compared to $68.9 million, or $0.98 per share in Q2’18 and $20.0 million, or $0.29 per share in Q3’17.

Adjusted EBITDA was $69.4 million on sales of $570.5 million in Q3’18 versus $123.8 million on sales of $619.9 million in Q2’18.

In comparison to the third quarter of 2017, Interfor posted improved results across most key metrics, including an $8.9 million or 15% improvement in Adjusted EBITDA, an $11.3 million or 67% increase in net earnings and a 29 million board foot rise in lumber production.

Notable items in the quarter included:

•  Lower Lumber Prices

  • Key benchmark prices decreased quarter-over-quarter, with the SYP Composite, Western SPF Composite and KD H-F Stud 2x4 9’ benchmark dropping by US$63, US$98 and US$94 per mfbm, respectively. Interfor’s average lumber selling price fell $52 from Q2’18 to $701 per mfbm.

  • Lumber prices have experienced an unusual level of volatility in 2018. The logistics disruptions that occurred in Q1’18 led to a significant increase in lumber inventories being trapped at producer yards.  This supply side constraint, combined with growing demand, contributed to an unprecedented rise in lumber prices during the early part of the year. As shipment levels increased, prices responded, falling in record amounts from late May through the end of September and dropping further in the early part of Q4’18. Notwithstanding the volatility experienced in 2018, Interfor believes that the underlying fundamental drivers of demand for its lumber products remain positive.

•  Production Balanced With Shipments

  • Total lumber production was 674 million board feet or 14 million board feet lower than the prior quarter.  Production in the U.S. South region of 313 million board feet was negatively impacted by several factors including preventative downtime ahead of Hurricane Florence and maintenance/project related downtime, which contributed to a 12 million board feet decrease from the preceding quarter.  The B.C. and U.S. Northwest regions accounted for 224 million board feet and 137 million board feet, respectively, compared to 215 million board feet and 148 million board feet in Q2’18, respectively.

  • Total lumber shipments were 685 million board feet, of which 675 million board feet were Interfor produced volumes, with the balance of 10 million board feet being agency and wholesale volumes.  Total lumber shipments were 15 million board feet lower than Q2’18, as Q3’18 shipments were negatively impacted by adverse weather in the U.S. South.  The Company’s lumber inventory was reduced 2 million board feet quarter-over-quarter.
      
  • Production in Q4’18 from Interfor’s B.C. Interior operations will be impacted by a previously announced temporary curtailment.  The curtailment is in response to the combination of declining lumber prices and escalating log costs and is expected to reduce the Company’s production in the region by approximately 20% during the quarter.

•  Higher Operating Costs

  • Interfor’s production costs increased by $22 per mfbm of lumber sold in Q3’18 versus Q2’18, as a result of several factors, including:  (i) higher stumpage and log hauling costs in the B.C. Interior; (ii) higher log and lumber inventory valuation adjustments due to the decline in lumber prices; (iii) higher maintenance spending in the U.S. South; and (iv) lower production due to the downtime from several maintenance projects and adverse weather in the U.S. South.

•  Strong Cash Flows and Liquidity

  • Interfor generated $69.7 million of cash from operations before changes in working capital, or $1.00 per share.  Total cash generated from operations was $85.0 million.

  • Net debt ended the quarter at $3.8 million, or 0.4% of invested capital, resulting in available liquidity of $567.2 million.  The Company closed on its previously announced agreement to extend US$84 million of its 2021 to 2023 term debt maturities to 2027 to 2029, resulting in a weighted average fixed interest rate on its term debt of 4.47%.

  • Capital spending was $38.5 million on a mix of high-return discretionary, maintenance and woodlands projects.  In addition, Interfor has US$12.6 million of deposits placed with key suppliers for capital equipment related to Phases I and II of its strategic capital plan.

  • Interfor purchased and cancelled 597,245 of its common shares at a total cost of $12.0 million.  The Company’s existing normal course issuer bid (“NCIB”) permits the purchase of up to 3,500,000 common shares until its expiry on March 6, 2019.

•  Softwood Lumber Duties

  • Interfor expensed $15.9 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%.

  • Cumulative duties of US$52.9 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S.  Of this total, US$3.2 million is recorded as a receivable in respect of overpayments arising from duty rate adjustments and US$49.7 million has been expensed and is not recorded on the balance sheet as a receivable.

__________________
(1)  Refer to Adjusted EBITDA, Operating cash flow per share and Net debt to invested capital in the Non-GAAP Measures section

Strategic Capital Plan Update

  • Interfor continues to make progress on previously announced Phases I and II strategic capital projects in the U.S. South.  The Phase I projects total US$65 million at the Meldrim, Georgia and Monticello, Arkansas sawmills.  Both of these projects remain on budget, with completion set for the Meldrim project in Q1’19 and the Monticello project by Q2’19.  The Phase II projects total US$240 million at the Thomaston and Eatonton sawmills in Georgia and the Georgetown sawmill in South Carolina.  These projects are on track for completion in various stages over the period of 2019 to 2021.

Greenfield Decision Postponed Indefinitely

  • Over the past year, Interfor has been assessing the feasibility of greenfield sawmill opportunities in the U.S. South.  In that regard, the Company has completed a detailed engineering study, secured the rights to a well-located site and negotiated a number of ancillary arrangements in support of the project.  However, based on prevailing market conditions for greenfield projects, including equipment lead times, contractor availability and projected capital costs, Interfor has concluded the project does not currently meet its criteria for discretionary investments and has postponed its decision on the project for an indefinite period.

  • In the meantime, the Company intends to focus on the previously announced Phase I and II internal capital projects and on other capital investment alternatives.  Any future decision on the greenfield project would likely result in that project being scheduled for construction, if at all, subsequent to the Phase I and II capital projects achieving substantial completion.

Financial and Operating Highlights (1) 

 

  For the 3 months ended For the 9 months ended
  Sept. 30Sept. 30Jun. 30 Sept. 30Sept. 30
 Unit2018 20172018 20182017
        
Financial Highlights(2)       
Total sales$MM570.5489.2619.9 1,718.01,457.3
Lumber$MM480.3410.2527.0 1,453.21,233.4
Logs, residual products and other$MM90.279.092.9 264.8223.9
Operating earnings$MM41.328.385.9 173.6101.5
Net earnings$MM28.116.863.8 124.861.0
Net earnings per share, basic$/share0.400.24  0.91   1.780.87
Adjusted net earnings(3)$MM28.220.068.9 133.971.4
Adjusted net earnings per share, basic(3)$/share0.40  0.29  0.98 1.91  1.02
Operating cash flow per share (before working  capital changes)(3)$/share1.000.821.76 3.832.72
Adjusted EBITDA(3)$MM69.460.5123.8 274.2198.2
Adjusted EBITDA margin(3)%12.2%12.4%20.0% 16.0%13.6%
        
Total assets$MM1,539.5  1,296.31,536.0   1,539.5  1,296.3
Total debt$MM258.9249.6263.4 258.9249.6
Net debt$MM3.8176.934.4 3.8176.9
Net debt to invested capital(3)%0.4%17.8%3.4% 0.4%17.8%
Annualized return on invested capital(3)%27.7%23.9%48.5% 37.3%25.5%
        
Operating Highlights       
Lumber productionmillion fbm674645688   2,029  1,940
Total lumber salesmillion fbm685671700 2,0331,991
  Lumber sales - Interfor producedmillion fbm675650689 1,9991,928
  Lumber sales - wholesale and commissionmillion fbm102111 3463
Lumber - average selling price(4)$/thousand fbm701611753 715620
        
Average USD/CAD exchange rate(5)1 USD in CAD1.30701.25281.2911 1.28761.3074
Closing USD/CAD exchange rate(5)1 USD in CAD1.2945
1.24801.3168 1.29451.2480
        


Notes: 
(1) Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
(2)Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
(3)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.
(4)Gross sales before duties.
(5)Based on Bank of Canada foreign exchange rates.
 

Liquidity

Balance Sheet

Interfor maintained a strong financial position throughout Q3’18.  Net debt at September 30, 2018 was $3.8 million, or 0.4% of invested capital, representing a decrease of $173.1 million from September 30, 2017, and a decrease of $115.5 million from December 31, 2017.  The majority of the decrease in net debt in Q3’18 is attributed to strong cash flows generated from operations.  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 hedged by the Company’s U.S. Dollar cash and marketable securities balances. 

 For the 3 months ended Sept. 30, For the 9 months ended Sept. 30,
Thousands of Dollars20182017 20182017
      
Net debt     
Net debt, period opening, CAD$34,415 $215,155 $119,300 $289,551
Net repayment on credit facilities, CAD112 2  111 (40,216)
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD(4,572) (9,942) 7,889 (19,005)
Decrease (increase) in cash and cash equivalents, CAD63,392(30,525) (33,953)(52,543)
Decrease (increase) in marketable securities, CAD (89,547) 2,176  (89,547)(921)
Net debt, period ending, CAD$3,800 $176,866  $3,800 $176,866
      
Net debt components by currency     
U.S. Dollar debt, period opening, USD $200,000 $200,000  $200,000 $230,000
Net repayment on credit facilities, USD -   - (30,000)
U.S. Dollar debt, period ending, USD$200,000 $200,000  200,000 200,000
      
Spot rate, period end    1.2945 1.2480
      
U.S. Dollar debt expressed in CAD    258,900 249,600
Total debt, CAD   258,900249,600
Cash and cash equivalents, CAD   (165,553)(71,813)
Marketable securities, CAD    (89,547)(921)
Net debt, period ending, CAD   $3,800$176,866

As at September 30, 2018, the Company had net working capital of $411.7 million and available liquidity of $567.2 million, including unrestricted cash, marketable securities and borrowing capacity on operating and term line facilities. 

On June 15, 2018, the Company extended the maturity of its U.S. Operating line from May 1, 2019 to June 15, 2021, with no other significant changes.  On August 14, 2018, Interfor completed an agreement to extend US$84 million of its 2021 to 2023 Senior Secured Note maturities to 2027 to 2029.  As a result, Interfor’s weighted average fixed interest rate on its term debt is 4.47%.   

These resources, in addition to cash generated from operations, will be used to support capital expenditures, working capital requirements and debt servicing commitments.  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 September 30, 2018:

  RevolvingSeniorU.S. 
 OperatingTermSecuredOperating 
Thousands of Canadian DollarsLineLineNotesLineTotal
Available line of credit$65,000 $200,000$258,900 $64,725 $588,625
Maximum borrowing available $65,000 $200,000 $258,900 $64,725 $588,625
Less:     
Drawings -  - 258,900 - 258,900
Outstanding letters of credit included in line utilization14,472--3,18417,656
Unused portion of facility $50,528 $200,000$             -$61,541 312,069
      
Add:     
Cash and cash equivalents    165,553
Marketable securities    89,547
Available liquidity at September 30, 2018    $567,169

As of September 30, 2018, the Company had commitments for capital expenditures totaling $105.6 million.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes) and Return on 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 unaudited interim consolidated financial statements prepared in accordance with IFRS:

 For the 3 months ended For the 9 months ended
 Sept. 30Sept. 30Jun.30 Sept. 30Sept. 30
Thousands of Canadian Dollars except number of shares and per share amounts201820172018 20182017
       
Adjusted Net Earnings       
Net earnings  $28,092  $16,778  $63,775   $124,843  $60,957
Add:      
Capital asset write-downs and restructuring costs (recovery)5,848(21)4,669 10,7531,781
Other foreign exchange loss (gain)1,8471,353(1,880) (144)2,447
Long term incentive compensation expense (recovery)(7,503)3,0043,996 1,3519,867
Other expense (income)(192)34780 66992
Post closure wind-down costs and losses (recoveries)-(39)- 4(26)
Income tax effect of above adjustments149(1,456)(1,701) (2,926)(4,588)
Adjusted net earnings $28,241 $19,966 $68,939  $133,947 $71,430
Weighted average number of shares - basic ('000)69,908 70,030 70,038  69,993 70,030
Adjusted net earnings per share $0.40 $0.29 $0.98  $1.91 $1.02
       
Adjusted EBITDA      
Net earnings $28,092 $16,778 $63,775  $124,843 $60,957
Add:      
Depreciation of plant and equipment20,07118,83620,851 60,99058,406
Depletion and amortization of timber, roads and other9,71510,4358,350 27,48226,756
Capital asset write-downs and restructuring costs (recovery)5,848(21)4,669 10,7531,781
Finance costs2,4653,2942,786 8,15610,891
Other foreign exchange loss (gain)1,8471,353(1,880) (144)2,447
Income tax expense9,0446,55921,132 40,70926,168
EBITDA77,08257,234119,683 272,789187,406
Add:      
Long term incentive compensation expense (recovery)(7,503)3,0043,996 1,3519,867
Other expense (income)(192)34780 66992
Post closure wind-down costs and losses (recoveries)-(39)- 4(26)
Adjusted EBITDA$69,387 $60,546 $123,759 $274,210 $198,239
Sales$570,486$489,169$619,893 $1,718,023$1,457,325
Adjusted EBITDA margin12.2%12.4%20.0% 16.0%13.6%
       
Net debt to invested capital      
Net debt      
Total debt $258,900 $249,600 $263,360  $258,900$249,600
Cash and cash equivalents(165,553)(71,813)(228,945) (165,553)(71,813)
Marketable securities(89,547)(921)- (89,547)(921)
Total net debt $3,800 $176,866 $34,415  $3,800 $176,866
Invested capital      
Net debt $3,800 $176,866 $34,415  $3,800 $176,866
Shareholders' equity985,316817,676977,294 985,316817,676
Total invested capital $989,116 $994,542$1,011,709 $989,116$994,542
Net debt to invested capital(1)0.4%17.8%3.4% 0.4%17.8%
       
Operating cash flow per share (before working capital changes)      
Cash provided by operating activities $84,956 $60,977 $133,729  $237,196 $171,475
Cash used in (generated from) operating working capital(15,223)(3,474)(10,579) 31,17119,028
Operating cash flow (before working capital changes) $69,733 $57,503 $123,150  $268,367 $190,503
Weighted average number of shares - basic ('000)69,90870,030 70,038  69,993 70,030
Operating cash flow per share (before working capital changes)$1.00$0.82$1.76  $3.83 $2.72
       
Annualized return on invested capital      
Adjusted EBITDA$69,387$60,546$123,759 $274,210$198,239
Invested capital, beginning of period$1,011,709$1,031,291$1,028,240 $973,488$1,076,218
Invested capital, end of period989,116994,5421,011,709 989,116994,542
Average invested capital$1,000,413$1,012,917$1,019,975 $981,302$1,035,380
Adjusted EBITDA divided by average invested capital6.9%6.0%12.1% 27.9%19.1%
Annualization factor4.04.04.0 1.331.33
Annualized return on invested capital27.7%23.9%48.5% 37.3%25.5%
 
Notes:
(1)    Net debt to invested capital as of the period end.
 

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS   
For the three and nine months ended September 30, 2018 and 2017 (unaudited)   
(thousands of Canadian Dollars except earnings per share)Three Months
 Three Months
 Nine Months
 Nine Months
 
  Sep. 30, 2018
 Sep. 30, 2017
 Sep. 30, 2018
 Sep. 30, 2017
 
      
Sales
Costs and expenses:
$570,486 $489,169 $1,718,023 $1,457,325 
    
 Production 472,354  407,222  1,359,291  1,205,504 
 Selling and administration 12,825  11,936  40,850  36,817 
 Long term incentive compensation expense (recovery) (7,503) 3,004  1,351  9,867 
 U.S. countervailing and anti-dumping duty deposits 15,920  9,426  43,676  16,739 
 Depreciation of plant and equipment 20,071  18,836  60,990  58,406 
 Depletion and amortization of timber, roads and other 9,715  10,435  27,482  26,756 
   523,382  460,859  1,533,640  1,354,089 
     
Operating earnings before write-downs and restructuring 47,104  28,310  184,383  103,236 
     
Capital asset write-downs and restructuring costs (recovery) 5,848  (21) 10,753  1,781 
Operating earnings 41,256  28,331  173,630  101,455 
     
Finance costs (2,465) (3,294)  (8,156 ) (10,891)
Other foreign exchange gain (loss) (1,847) (1,353) 144  (2,447)
Other expense 192  (347) (66 ) (992)
  (4,120) (4,994) (8,078) (14,330)
      
Earnings before income taxes 37,136  23,337  165,552  87,125 
      
Income tax expense:     
 Current 663  22  3,000  708 
 Deferred 8,381  6,537  37,709  25,460 
  9,044  6,559  40,709  26,168 
      
Net earnings$28,092 $16,778 $124,843 $60,957 
     
Net earnings per share, basic and diluted$0.40 $0.24 $1.78 $0.87 


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
For the three and nine months ended September 30, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)Three Months
 Three Months
 Nine Months
 Nine Months
 
  Sep. 30, 2018
 Sep. 30, 2017
 Sep. 30, 2018
 Sep. 30, 2017
 
              
Net earnings
$28,092  $16,778  $124,843  $60,957 
              
Other comprehensive income (loss):
            
Items that will not be recycled to Net earnings:
            
 Defined benefit plan actuarial gain, net of tax 957  1,192  2,846  794 
              
Items that are or may be recycled to Net earnings:
            
 Foreign currency translation differences for            
 foreign operations, net of tax (9,289) (16,589) 14,688  (31,151
 Loss in fair value of interest rate swaps -  -  -  (11
 Total items that are or may be recycled to Net earnings (9,289) (16,589) 14,688  (31,162)
Total other comprehensive income (loss), net of tax
 (8,332) (15,397) 17,534  (30,368
              
Comprehensive income
$19,760 $1,381 $142,377 $30,589 
      

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2018 and 2017 (unaudited)
(thousands of Canadian Dollars)Three Months
 Three Months
 Nine Months
 Nine Months
 
    Sep. 30, 2018
 Sep. 30, 2017
 Sep. 30, 2018
 Sep. 30, 2017
 
                
Cash provided by (used in):
Operating activities:
            
                
 Net earnings
$28,092 $16,778 $124,843 $60,957 
 Items not involving cash:
            
   Depreciation of plant and equipment 20,071  18,836  60,990  58,406 
   Depletion and amortization of timber, roads and other 9,715  10,435  27,482  26,756 
   Income tax expense 9,044  6,559  40,709  26,168 
   Finance costs 2,465  3,294  8,156  10,891 
   Other assets 241  (252) (176) (70)
   Reforestation liability (2,111) (522) (684) 1,787 
   Provisions and other liabilities (3,724) 2,178  (4,180) 4,225 
   Stock options 212  159  558  420 
   Write-down of plant, equipment and intangibles 5,823  -  10,687  - 
   Unrealized foreign exchange loss (gain) 97  (2) (84) (11)
   Other expense (income) (192) 40  66  974 
     69,733  57,503  268,367  190,503 
 Cash generated from (used in) operating working capital:
            
   Trade accounts receivable and other 20,738  (8,785) (3,232) (21,041)
   Inventories 951  10,417  (30,975) (5,255)
   Prepayments (560) (1,011) (3,344) (1,430)
   Trade accounts payable and provisions (3,952) 3,576  9,656  9,841 
   Income taxes paid (1,954) (723) (3,276) (1,143)
     84,956  60,977  237,196  171,475 
                
Investing activities:
            
  Additions to property, plant and equipment (28,968) (19,805) (56,133) (42,957
  Additions to roads and bridges (9,473) (8,608) (23,641) (25,139
  Additions to timber licences and other intangible assets (40) (461) (90) (1,826
  Proceeds on disposal of property, plant and equipment 324  63  509  461 
  Net proceeds from (additions to) investments and other assets (93,354) 2,805  (106,919) 2,653 
     (131,511) (26,006) (186,274) (66,808)
                
Financing activities:
            
  Issuance of share capital, net of expenses  -  -  143  - 
  Repurchase of share capital (11,950) -  (11,950) - 
  Interest payments (2,788) (2,832) (7,902) (9,585)
  Debt refinancing costs (67) (615) (70) (785)
  Change in operating line components of long term debt -  2  (1) (63)
  Additions to long term debt 155,909  -  155,909  76,107 
  Repayments of long term debt (155,797) -  (155,797) (116,260)
     (14,693) (3,445) (19,668) (50,586)
                
Foreign exchange gain (loss) on cash and
            
 cash equivalents held in a foreign currency
 (2,144) (1,001) 2,699  (1,538)
Increase (decrease) in cash
 (63,392) 30,525  33,953  52,543 
                
Cash and cash equivalents, beginning of period
 228,945  41,288  131,600  19,270 
                
Cash and cash equivalents, end of period
$165,553 $71,813 $165,553 $71,813 
 


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
September 30, 2018 and December 31, 2017 (unaudited)
(thousands of Canadian Dollars)      
  Sep. 30, 2018
 Dec. 31, 2017
 
        
Assets

      
Current assets:      
 Cash and cash equivalents$165,553 $131,600 
 Marketable securities 89,547  - 
 Trade accounts receivable and other 117,593  112,470 
 Income taxes receivable 1,636  1,289 
 Inventories 199,294  165,156 
 Prepayments 16,363  12,562 
   589,986  423,077 
        
Employee future benefits
 3,497  502 
Deposits and other assets
 22,712  6,404 
Property, plant and equipment
 670,173  670,830 
Roads and bridges
 27,427  24,092 
Timber licences
 64,794  66,589 
Other intangible assets
 8,877  14,170 
Goodwill
 151,354  147,081 
Deferred income taxes
 653  251 
        
  $1,539,473 $1,352,996 
        
Liabilities and Shareholders’ Equity
      
Current liabilities:
      
 Trade accounts payable and provisions$164,066 $152,854 
 Reforestation liability 13,975  12,873 
 Income taxes payable  251  224 
   178,292  165,951 
        
Reforestation liability
 27,306  27,535 
Long term debt
 258,900  250,900 
Employee future benefits
 8,170  8,249 
Provisions and other liabilities
 22,724  26,976 
Deferred income taxes
 58,765  19,197 
        
Equity:
      
 Share capital 550,864  555,388 
 Contributed surplus 3,662  8,582 
 Translation reserve 55,408  40,720 
 Retained earnings 375,382  249,498 
        
   985,316  854,188 
        
  $1,539,473 $1,352,996 
        

Approved on behalf of the Board of Directors: 

 L. Sauder” “Thomas V. Milroy” 
 DirectorDirector 
    

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, cyber-security measures, 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 3.1 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 unaudited consolidated financial statements and Management’s Discussion and Analysis for Q3’18 are available at www.sedar.com and www.interfor.com

There will be a conference call on Friday, November 9, 2018 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2018 financial results.

The dial-in number is 1-866-559-8291.  The conference call will also be recorded for those unable to join in for the live discussion, and will be available until December 9, 2018.  The number to call is 1-855-859-2056, Passcode 7288847.

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